1.1                          A bill for an act 
  1.2             relating to state government; education and 
  1.3             educational programs; kindergarten through grade 12; 
  1.4             providing for general education; special education; 
  1.5             interagency service, lifelong learning, and 
  1.6             technology; facilities and organization; policies 
  1.7             promoting academic excellence; education policy 
  1.8             issues; libraries; state agencies; miscellaneous 
  1.9             provisions; appropriating money; amending Minnesota 
  1.10            Statutes 1996, sections 43A.17, subdivisions 9 and 10; 
  1.11            120.03, subdivision 1; 120.06, subdivision 2a; 
  1.12            120.064, subdivision 5; 120.101, subdivision 3; 
  1.13            120.17, subdivisions 1, 2, 3, 3a, 3b, 6, 7, 7a, 9, and 
  1.14            15; 120.1701, subdivisions 2, 5, 11, and 17; 120.173, 
  1.15            subdivisions 1 and 6; 120.73, subdivision 1; 121.11, 
  1.16            subdivision 7d; 121.1115, by adding a subdivision; 
  1.17            121.14; 121.148, subdivision 3; 121.16, by adding 
  1.18            subdivisions; 121.1601, subdivision 2; 121.908, 
  1.19            subdivisions 2 and 3; 122.23, subdivisions 2b and 6; 
  1.20            123.34, subdivision 9; 123.35, subdivision 19a; 
  1.21            123.3514, by adding a subdivision; 123.39, subdivision 
  1.22            1, and by adding a subdivision; 123.805, subdivision 
  1.23            1; 123.935, subdivisions 1 and 2; 124.078; 124.14, 
  1.24            subdivision 7, and by adding a subdivision; 124.17, 
  1.25            subdivision 2; 124.225, subdivisions 7f and 8m; 
  1.26            124.248, subdivisions 1 and 1a; 124.2713, subdivision 
  1.27            6a; 124.2727, subdivisions 6a and 6c; 124.273, by 
  1.28            adding a subdivision; 124.32, by adding a subdivision; 
  1.29            124.3201, subdivision 5; 124.323, by adding a 
  1.30            subdivision; 124.646, subdivision 4; 124.755, 
  1.31            subdivision 1; 124.83, subdivision 8; 124.85, 
  1.32            subdivision 4; 124.91, subdivision 6; 124.95, 
  1.33            subdivision 6; 124A.03, subdivisions 2b and 3c; 
  1.34            124A.034, subdivision 2; 124A.036, subdivisions 1a, 4, 
  1.35            6, and by adding a subdivision; 124A.22, by adding a 
  1.36            subdivision; 124A.29, subdivision 1; 124A.292, 
  1.37            subdivision 3; 124A.30; 124C.45, subdivision 2; 
  1.38            124C.47; 124C.48, by adding a subdivision; 125.183, 
  1.39            subdivisions 1 and 3; 125.191; 126.12, subdivision 1; 
  1.40            126.237; 126.70, subdivision 2a; 127.27, subdivision 
  1.41            2; 128A.02, subdivisions 1, 3, 3b, 5, 6, and by adding 
  1.42            subdivisions; 128A.022; 128A.023, subdivisions 1 and 
  1.43            2; 128A.026, subdivisions 1 and 3; 128A.07, 
  1.44            subdivision 2; 169.451, subdivision 5; 254A.17, 
  1.45            subdivision 1, and by adding a subdivision; 256B.0625, 
  1.46            subdivision 26; 260.015, subdivision 19; 260.131, 
  2.1             subdivision 1b; 260.132, subdivision 1; 260A.05, 
  2.2             subdivision 2; 260A.06; and 268.665, subdivision 3; 
  2.3             Minnesota Statutes 1997 Supplement, sections 120.064, 
  2.4             subdivision 3; 120.101, subdivision 5; 120.1701, 
  2.5             subdivision 3; 120.181; 121.11, subdivision 7c; 
  2.6             121.1113, subdivision 1; 121.15, subdivision 6; 
  2.7             121.904, subdivision 4a; 124.17, subdivisions 4, 6, 
  2.8             and 7; 124.195, subdivision 7; 124.248, subdivisions 
  2.9             2a and 6; 124.2601, subdivisions 3 and 6; 124.2711, 
  2.10            subdivision 2a; 124.2713, subdivision 6; 124.3111, 
  2.11            subdivision 2; 124.3201, subdivision 2; 124.6475; 
  2.12            124.648, subdivision 3; 124.91, subdivisions 1 and 5; 
  2.13            124A.036, subdivision 5; 124A.22, subdivisions 1, 2, 
  2.14            11, and 13b; 124A.23, subdivision 1; 124A.28, 
  2.15            subdivisions 1 and 1a; 124C.46, subdivisions 1 and 2; 
  2.16            126.79, subdivisions 3, 6, 7, 8, and 9; 127.27, 
  2.17            subdivisions 10 and 11; 127.31, subdivision 15; 
  2.18            127.32; 127.36, subdivision 1; 127.38; 128A.02, 
  2.19            subdivision 7; 169.01, subdivision 6; 268.665, 
  2.20            subdivision 2; and 290.0674, subdivision 1; Laws 1992, 
  2.21            chapter 499, article 7, section 31; Laws 1993, chapter 
  2.22            224, article 3, section 32; Laws 1996, chapter 412, 
  2.23            article 12, section 12, subdivision 5; Laws 1997, 
  2.24            chapter 157, section 71; Laws 1997, First Special 
  2.25            Session chapter 4, article 1, sections 58 and 61, 
  2.26            subdivision 3; article 2, section 51, subdivisions 2, 
  2.27            4, 5, 25, 29, and 33; article 3, sections 23, by 
  2.28            adding a subdivision, and 25, subdivision 4; article 
  2.29            4, sections 34 and 35, subdivision 9; article 5, 
  2.30            sections 24, subdivision 4, and 28, subdivisions 4, 9, 
  2.31            10, 11, 12, and 17; article 6, section 20, subdivision 
  2.32            4; article 8, section 4, subdivision 3; article 9, 
  2.33            sections 11 and 12, subdivision 6; article 10, 
  2.34            sections 3, subdivision 2, 4, and 5; proposing coding 
  2.35            for new law in Minnesota Statutes, chapters 120; 121; 
  2.36            123; 124A; and 145; repealing Minnesota Statutes 1996, 
  2.37            sections 121.02; 121.11, subdivisions 5, 7, 7b, 7d, 9, 
  2.38            11, 12, and 14; 121.904, subdivision 4c; 124.2601, 
  2.39            subdivision 4; 124.2713, subdivision 6b; 124.2727, 
  2.40            subdivision 6b; 124.647; and 124A.292, subdivisions 2 
  2.41            and 4; Minnesota Statutes 1997 Supplement, sections 
  2.42            121.11, subdivision 7e; 124.2601, subdivision 5; 
  2.43            124.912, subdivisions 2 and 3; and 169.452; Laws 1993, 
  2.44            chapter 146, article 5, section 20; and Laws 1997, 
  2.45            chapter 231, article 1, section 17; Minnesota Rules, 
  2.46            part 3525.2750, subpart 1, item B. 
  2.47  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.48                             ARTICLE 1
  2.49                         GENERAL EDUCATION
  2.50     Section 1.  Minnesota Statutes 1997 Supplement, section 
  2.51  121.904, subdivision 4a, is amended to read: 
  2.52     Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
  2.53  settlement revenue" means the current, delinquent, and 
  2.54  manufactured home property tax receipts collected by the county 
  2.55  and distributed to the school district, including distributions 
  2.56  made pursuant to section 279.37, subdivision 7, and excluding 
  2.57  the amount levied pursuant to section 124.914, subdivision 1. 
  2.58     (b) In June of each year, the school district shall 
  3.1   recognize as revenue, in the fund for which the levy was made, 
  3.2   the lesser of:  
  3.3      (1) the May, June, and July school district tax settlement 
  3.4   revenue received in that calendar year; or 
  3.5      (2) the sum of: the state aids and credits enumerated in 
  3.6   section 124.155, subdivision 2, which are for the fiscal year 
  3.7   payable in that fiscal year plus an amount equal to the levy 
  3.8   recognized as revenue in June of the prior year plus 31 percent 
  3.9   of the amount of the levy certified in the prior calendar year 
  3.10  according to section 124A.03, subdivision 2; or 
  3.11     (3)(i) 7.0 percent of the lesser of the amount of the 
  3.12  general education levy certified in the prior calendar year 
  3.13  according to section 124A.23, subdivision 2, or the difference 
  3.14  between the amount of the total general fund levy certified in 
  3.15  the prior calendar year and the sum of the amounts certified in 
  3.16  the prior calendar year according to sections 124A.03, 
  3.17  subdivision 2; 124.315, subdivision 4; 124.912, subdivisions 1, 
  3.18  paragraph (2), 2, and 3; 124.916, subdivisions 1, 2, and 3, 
  3.19  paragraphs (4), (5), and (6); and 124.918, subdivision 6; plus 
  3.20     (ii) 31 percent of the referendum levy certified in the 
  3.21  prior calendar year according to section 124A.03, subdivision 2; 
  3.22  plus 
  3.23     (iii) the entire amount of the levy certified in the prior 
  3.24  calendar year according to sections 124.315, subdivision 4; 
  3.25  124.912, subdivisions 1, paragraph (2), 2, and 3; 124.916, 
  3.26  subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 
  3.27  124.918, subdivision 6. 
  3.28     (i) 31 percent of the referendum levy certified in the 
  3.29  prior calendar year according to section 124A.03, subdivision 2; 
  3.30  plus 
  3.31     (ii) the entire amount of the levy certified in the prior 
  3.32  calendar year according to sections 124.912, subdivisions 1, 
  3.33  paragraph (2), 2, and 3; 124.315, subdivision 4; 124.916, 
  3.34  subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 
  3.35  124.918, subdivision 6. 
  3.36     (c) In July of each year, the school district shall 
  4.1   recognize as revenue that portion of the school district tax 
  4.2   settlement revenue received in that calendar year and not 
  4.3   recognized as revenue for the previous fiscal year pursuant to 
  4.4   clause (b).  
  4.5      (d) All other school district tax settlement revenue shall 
  4.6   be recognized as revenue in the fiscal year of the settlement. 
  4.7   Portions of the school district levy assumed by the state, 
  4.8   including prior year adjustments and the amount to fund the 
  4.9   school portion of the reimbursement made pursuant to section 
  4.10  273.425, shall be recognized as revenue in the fiscal year 
  4.11  beginning in the calendar year for which the levy is payable. 
  4.12     Sec. 2.  Minnesota Statutes 1996, section 121.908, 
  4.13  subdivision 2, is amended to read: 
  4.14     Subd. 2.  Each district shall submit to the commissioner by 
  4.15  August September 15 of each year an unaudited financial 
  4.16  statement data for the preceding fiscal year.  This statement 
  4.17  These financial data shall be submitted on forms in the format 
  4.18  prescribed by the commissioner. 
  4.19     Sec. 3.  Minnesota Statutes 1996, section 121.908, 
  4.20  subdivision 3, is amended to read: 
  4.21     Subd. 3.  By December 31 November 30 of the calendar year 
  4.22  of the submission of the unaudited financial statement data, the 
  4.23  district shall provide to the commissioner and state auditor an 
  4.24  audited financial data for the preceding fiscal year.  An 
  4.25  audited financial statement prepared in a form which will allow 
  4.26  comparison with and correction of material differences in the 
  4.27  unaudited statement financial data shall be submitted to the 
  4.28  commissioner and the state auditor by December 31.  The audited 
  4.29  financial statement must also provide a statement of assurance 
  4.30  pertaining to uniform financial accounting and reporting 
  4.31  standards compliance and a copy of the management letter 
  4.32  submitted to the district by the school district's auditor. 
  4.33     Sec. 4.  Minnesota Statutes 1996, section 124.14, 
  4.34  subdivision 7, is amended to read: 
  4.35     Subd. 7.  [APPROPRIATION TRANSFERS.] If a direct 
  4.36  appropriation from the general fund to the department of 
  5.1   children, families, and learning for any education aid or grant 
  5.2   authorized in this chapter and chapters 121, 123, 124A, 124C, 
  5.3   125, 126, and 134, excluding appropriations under sections 
  5.4   124.26, 124.2601, 124.2605, 124.261, 124.2615, 124.2711, 
  5.5   124.2712, 124.2713, 124.2714, 124.2715, and 124.2716, exceeds 
  5.6   the amount required, the commissioner of children, families, and 
  5.7   learning may transfer the excess to any education aid or grant 
  5.8   appropriation that is insufficient.  However, section 124A.032 
  5.9   applies to a deficiency in the direct appropriation for general 
  5.10  education aid.  Excess appropriations shall be allocated 
  5.11  proportionately among aids or grants that have insufficient 
  5.12  appropriations.  The commissioner of finance shall make the 
  5.13  necessary transfers among appropriations according to the 
  5.14  determinations of the commissioner of children, families, and 
  5.15  learning.  If the amount of the direct appropriation for the aid 
  5.16  or grant plus the amount transferred according to this 
  5.17  subdivision is insufficient, the commissioner shall prorate the 
  5.18  available amount among eligible districts.  The state is not 
  5.19  obligated for any additional amounts.  
  5.20     Sec. 5.  Minnesota Statutes 1996, section 124.14, is 
  5.21  amended by adding a subdivision to read: 
  5.22     Subd. 7a.  [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 
  5.23  PROGRAMS.] If a direct appropriation from the general fund to 
  5.24  the department of children, families, and learning for an 
  5.25  education aid or grant authorized under section 124.26, 
  5.26  124.2601, 124.2605, 124.261, 124.2615, 124.2711, 124.2712, 
  5.27  124.2713, 124.2714, 124.2715, or 124.2716 exceeds the amount 
  5.28  required, the commissioner of children, families, and learning 
  5.29  may transfer the excess to any education aid or grant 
  5.30  appropriation that is insufficiently funded under these sections.
  5.31  Excess appropriations shall be allocated proportionately among 
  5.32  aids or grants that have insufficient appropriations.  The 
  5.33  commissioner of finance shall make the necessary transfers among 
  5.34  appropriations according to the determinations of the 
  5.35  commissioner of children, families, and learning.  If the amount 
  5.36  of the direct appropriation for the aid or grant plus the amount 
  6.1   transferred according to this subdivision is insufficient, the 
  6.2   commissioner shall prorate the available amount among eligible 
  6.3   districts.  The state is not obligated for any additional 
  6.4   amounts. 
  6.5      Sec. 6.  Minnesota Statutes 1997 Supplement, section 
  6.6   124.17, subdivision 4, is amended to read: 
  6.7      Subd. 4.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
  6.8   enrolled in a learning year program under section 121.585, an 
  6.9   area learning center under sections 124C.45 and 124C.46, or an 
  6.10  alternative program approved by the commissioner, or a contract 
  6.11  alternative program under section 126.22, subdivision 3, 
  6.12  paragraph (d), or subdivision 3a, for more than 1,020 hours in a 
  6.13  school year for a secondary student, more than 935 hours in a 
  6.14  school year for an elementary student, or more than 425 hours in 
  6.15  a school year for a kindergarten student without a disability, 
  6.16  that pupil may be counted as more than one pupil in average 
  6.17  daily membership.  The amount in excess of one pupil must be 
  6.18  determined by the ratio of the number of hours of instruction 
  6.19  provided to that pupil in excess of:  (i) the greater of 1,020 
  6.20  hours or the number of hours required for a full-time secondary 
  6.21  pupil in the district to 1,020 for a secondary pupil; (ii) the 
  6.22  greater of 935 hours or the number of hours required for a 
  6.23  full-time elementary pupil in the district to 935 for an 
  6.24  elementary pupil in grades 1 through 6; and (iii) the greater of 
  6.25  425 hours or the number of hours required for a full-time 
  6.26  kindergarten student without a disability in the district to 425 
  6.27  for a kindergarten student without a disability.  Hours that 
  6.28  occur after the close of the instructional year in June shall be 
  6.29  attributable to the following fiscal year.  A kindergarten 
  6.30  student must not be counted as more than 1.2 pupils in average 
  6.31  daily membership under this subdivision. 
  6.32     (b)(i) To receive general education revenue for a pupil in 
  6.33  an alternative program that has an independent study component, 
  6.34  a school district must meet the requirements in this paragraph.  
  6.35  The school district must develop with the pupil a continual 
  6.36  learning plan for the pupil.  A district must allow a minor 
  7.1   pupil's parent or guardian to participate in developing the 
  7.2   plan, if the parent or guardian wants to participate.  The plan 
  7.3   must identify the learning experiences and expected outcomes 
  7.4   needed for satisfactory credit for the year and for graduation.  
  7.5   The plan must be updated each year.  Each school district that 
  7.6   has a state-approved public alternative program must reserve 
  7.7   revenue in an amount equal to at least 90 percent of the 
  7.8   district average general education revenue per pupil unit less 
  7.9   compensatory revenue per pupil unit times the number of pupil 
  7.10  units generated by students attending a state-approved public 
  7.11  alternative program.  The amount of reserved revenue available 
  7.12  under this subdivision may only be spent for program costs 
  7.13  associated with the state-approved public alternative program.  
  7.14  Compensatory revenue must be allocated according to section 
  7.15  124A.28, subdivision 1a. 
  7.16     (ii) General education revenue for a pupil in an approved 
  7.17  alternative program without an independent study component must 
  7.18  be prorated for a pupil participating for less than a full year, 
  7.19  or its equivalent.  Each school district that has a 
  7.20  state-approved public alternative program must reserve revenue 
  7.21  in an amount equal to at least 90 percent of the district 
  7.22  average general education revenue per pupil unit less 
  7.23  compensatory revenue per pupil unit times the number of pupil 
  7.24  units generated by students attending a state-approved public 
  7.25  alternative program.  The amount of reserved revenue available 
  7.26  under this subdivision may only be spent for program costs 
  7.27  associated with the state-approved public alternative program.  
  7.28  Compensatory revenue must be allocated according to section 
  7.29  124A.28, subdivision 1a.  
  7.30     (iii) General education revenue for a pupil in an approved 
  7.31  alternative program that has an independent study component must 
  7.32  be paid for each hour of teacher contact time and each hour of 
  7.33  independent study time completed toward a credit or graduation 
  7.34  standards necessary for graduation.  Average daily membership 
  7.35  for a pupil shall equal the number of hours of teacher contact 
  7.36  time and independent study time divided by 1,020. 
  8.1      (iv) For an alternative program having an independent study 
  8.2   component, the commissioner shall require a description of the 
  8.3   courses in the program, the kinds of independent study involved, 
  8.4   the expected learning outcomes of the courses, and the means of 
  8.5   measuring student performance against the expected outcomes.  
  8.6      Sec. 7.  Minnesota Statutes 1997 Supplement, section 
  8.7   124.17, subdivision 6, is amended to read: 
  8.8      Subd. 6.  [FREE AND REDUCED PRICED LUNCHES.] The 
  8.9   commissioner shall determine the number of children eligible to 
  8.10  receive either a free or reduced priced lunch on October 1 each 
  8.11  year.  Children enrolled in a building on October 1 and 
  8.12  determined to be eligible to receive free or reduced price lunch 
  8.13  by January 15 of the following year shall be counted as eligible 
  8.14  on October 1 for purposes of subdivision 1d.  The commissioner 
  8.15  may use federal definitions for these purposes and may adjust 
  8.16  these definitions as appropriate.  The commissioner may adopt 
  8.17  reporting guidelines to assure accuracy of data counts and 
  8.18  eligibility.  Districts shall use any guidelines adopted by the 
  8.19  commissioner. 
  8.20     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
  8.21  124.17, subdivision 7, is amended to read: 
  8.22     Subd. 7.  [LEP PUPIL UNITS.] (a) Limited English 
  8.23  proficiency pupil units for fiscal year 1998 and thereafter 
  8.24  shall be determined according to this subdivision. 
  8.25     (b) The limited English proficiency concentration 
  8.26  percentage for a district equals the product of 100 times the 
  8.27  ratio of: 
  8.28     (1) the number of pupils of limited English proficiency 
  8.29  enrolled in the district during the current fiscal year; to 
  8.30     (2) the number of pupils in average daily membership 
  8.31  enrolled in the district. 
  8.32     (c) The limited English proficiency pupil units for each 
  8.33  pupil enrolled in a program for pupils of limited English 
  8.34  proficiency in accordance with sections 126.261 to 126.269 
  8.35  equals the lesser of one or the quotient obtained by dividing 
  8.36  the limited English proficiency concentration percentage for the 
  9.1   pupil's district of enrollment by 11.5. 
  9.2      (d) Limited English proficiency pupil units shall be 
  9.3   counted by the district of enrollment. 
  9.4      (e) Notwithstanding paragraph (d), for the purposes of this 
  9.5   subdivision, pupils enrolled in a cooperative or intermediate 
  9.6   school district shall be counted by the district of residence. 
  9.7      Sec. 9.  Minnesota Statutes 1997 Supplement, section 
  9.8   124.195, subdivision 7, is amended to read: 
  9.9      Subd. 7.  [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 
  9.10  fiscal year state general fund payments for a district 
  9.11  nonoperating fund shall be made at 90 percent of the estimated 
  9.12  entitlement during the fiscal year of the entitlement.  This 
  9.13  amount shall be paid in 12 equal monthly installments.  The 
  9.14  amount of the actual entitlement, after adjustment for actual 
  9.15  data, minus the payments made during the fiscal year of the 
  9.16  entitlement shall be paid prior to October 31 of the following 
  9.17  school year.  The commissioner may make advance payments of debt 
  9.18  service equalization aid or homestead and agricultural credit 
  9.19  aid for a district's debt service fund earlier than would occur 
  9.20  under the preceding schedule if the district submits evidence 
  9.21  showing a serious cash flow problem in the fund.  The 
  9.22  commissioner may make earlier payments during the year and, if 
  9.23  necessary, increase the percent of the entitlement paid to 
  9.24  reduce the cash flow problem. 
  9.25     Sec. 10.  Minnesota Statutes 1996, section 124.248, 
  9.26  subdivision 1, is amended to read: 
  9.27     Subdivision 1.  [GENERAL EDUCATION REVENUE.] General 
  9.28  education revenue shall be paid to a charter school as though it 
  9.29  were a school district.  The general education revenue for each 
  9.30  pupil unit is the state average general education revenue per 
  9.31  pupil unit minus $170 an amount equal to the product of the 
  9.32  formula allowance according to section 124A.22, subdivision 2, 
  9.33  times .0485, calculated without compensatory basic skills 
  9.34  revenue, transportation sparsity revenue, and the transportation 
  9.35  portion of the transition revenue adjustment, plus compensatory 
  9.36  basic skills revenue as though the school were a school district.
 10.1      Sec. 11.  Minnesota Statutes 1996, section 124.248, 
 10.2   subdivision 1a, is amended to read: 
 10.3      Subd. 1a.  [TRANSPORTATION REVENUE.] Transportation revenue 
 10.4   shall be paid to a charter school that provides transportation 
 10.5   services according to section 120.064, subdivision 15, according 
 10.6   to this subdivision.  Transportation aid shall equal 
 10.7   transportation revenue.  
 10.8      (a) In addition to the revenue under subdivision 1, a 
 10.9   charter school providing transportation services shall receive 
 10.10  general education aid for each pupil unit equal to the sum of 
 10.11  $170 an amount equal to the product of the formula allowance 
 10.12  according to section 124A.22, subdivision 2, times .0485, plus 
 10.13  the transportation sparsity allowance for the school district in 
 10.14  which the charter school is located, plus the transportation 
 10.15  transition allowance for the school district in which the 
 10.16  charter school is located.  
 10.17     (b) For the first two years that a charter school is 
 10.18  providing transportation services, the special programs 
 10.19  transportation revenue equals the charter school's actual cost 
 10.20  in the current school year for transportation services for 
 10.21  children with disabilities under section 124.223, subdivisions 
 10.22  4, 5, 7, and 8.  For the third year of transportation services 
 10.23  and later fiscal years, the special programs transportation 
 10.24  revenue shall be computed according to section 124.225, 
 10.25  subdivision 14.  
 10.26     Sec. 12.  Minnesota Statutes 1997 Supplement, section 
 10.27  124.248, subdivision 2a, is amended to read: 
 10.28     Subd. 2a.  [BUILDING LEASE AID.] When a charter school 
 10.29  finds it economically advantageous to rent or lease a building 
 10.30  or land for any instructional purposes and it determines that 
 10.31  the total operating capital revenue under section 124A.22, 
 10.32  subdivision 10, is insufficient for this purpose, it may apply 
 10.33  to the commissioner for building lease aid for this purpose.  
 10.34  Criteria for aid approval and revenue uses shall be as defined 
 10.35  for the building lease levy in section 124.91, subdivision 1, 
 10.36  paragraphs (a) and (b).  The amount of building lease aid per 
 11.1   pupil unit served for a charter school for any year shall not 
 11.2   exceed the lesser of (a) 80 percent of the approved cost or (b) 
 11.3   the product of the actual pupil units served for the current 
 11.4   school year times the sum of the state average debt redemption 
 11.5   fund revenue plus capital revenue, according to section 124.91, 
 11.6   per actual pupil unit served for the current fiscal year. 
 11.7      Sec. 13.  Minnesota Statutes 1997 Supplement, section 
 11.8   124.248, subdivision 6, is amended to read: 
 11.9      Subd. 6.  [START-UP COSTS.] During the first two years of a 
 11.10  charter school's operation, the charter school is eligible for 
 11.11  aid to pay for start-up costs and additional operating costs. 
 11.12  Start-up cost aid equals the greater of: 
 11.13     (1) $50,000 per charter school; or 
 11.14     (2) $500 times the charter school's pupil units served for 
 11.15  that year. 
 11.16     Sec. 14.  Minnesota Statutes 1997 Supplement, section 
 11.17  124.2601, subdivision 3, is amended to read: 
 11.18     Subd. 3.  [REVENUE AID.] Adult basic education revenue aid 
 11.19  for each approved program equals 65 percent of the general 
 11.20  education formula allowance times the number of full-time 
 11.21  equivalent students in its adult basic education program. 
 11.22     Sec. 15.  Minnesota Statutes 1997 Supplement, section 
 11.23  124.2601, subdivision 6, is amended to read: 
 11.24     Subd. 6.  [AID GUARANTEE.] (a) For fiscal year 1994, any 
 11.25  adult basic education program that receives less state aid under 
 11.26  subdivisions 3 and 7 than from the aid formula for fiscal year 
 11.27  1992 shall receive the amount of aid it received in fiscal year 
 11.28  1992. 
 11.29     (b) For 1995, 1996, and 1997 fiscal years, an adult basic 
 11.30  education program that receives aid shall receive at least the 
 11.31  amount of aid it received in fiscal year 1992 under subdivisions 
 11.32  3 and 7, plus aid equal to the amount of revenue that would have 
 11.33  been raised for taxes payable in 1994 under Minnesota Statutes 
 11.34  1992, section 124.2601, subdivision 4, minus the amount raised 
 11.35  under subdivision 4. 
 11.36     (c) For fiscal year 1998, any adult basic education program 
 12.1   that receives less state aid than in fiscal year 1997 shall 
 12.2   receive additional aid equal to 80 percent of the difference 
 12.3   between its 1997 aid and the amount of aid under Minnesota 
 12.4   Statutes 1997 Supplement, section 124.2601, subdivision 5.  For 
 12.5   fiscal year 1999 and later, additional aid under this 
 12.6   paragraph must be reduced by 20 percent each year equals 80 
 12.7   percent of the additional aid computed for fiscal year 1998.  
 12.8   For fiscal year 2000, the additional aid under this paragraph 
 12.9   equals 60 percent of the additional aid computed for fiscal year 
 12.10  1998.  For fiscal year 2001, the additional aid under this 
 12.11  paragraph equals 40 percent of the additional aid computed for 
 12.12  fiscal year 1998.  For fiscal year 2002, the additional aid 
 12.13  under this paragraph equals 20 percent of the additional aid 
 12.14  computed for fiscal year 1998.  For fiscal year 2003 and later, 
 12.15  the additional aid under this paragraph equals zero. 
 12.16     Sec. 16.  Minnesota Statutes 1997 Supplement, section 
 12.17  124.2711, subdivision 2a, is amended to read: 
 12.18     Subd. 2a.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 
 12.19  obtain early childhood family education revenue, a district may 
 12.20  levy an amount equal to the tax rate of .653 .45 percent times 
 12.21  the adjusted tax capacity of the district for the year preceding 
 12.22  the year the levy is certified.  If the amount of the early 
 12.23  childhood family education levy would exceed the early childhood 
 12.24  family education revenue, the early childhood family education 
 12.25  levy shall equal the early childhood family education revenue. 
 12.26     Sec. 17.  Minnesota Statutes 1997 Supplement, section 
 12.27  124.2713, subdivision 6, is amended to read: 
 12.28     Subd. 6.  [COMMUNITY EDUCATION LEVY.] To obtain community 
 12.29  education revenue, a district may levy the amount raised by a 
 12.30  tax rate of 1.09 .41 percent times the adjusted net tax capacity 
 12.31  of the district.  If the amount of the community education levy 
 12.32  would exceed the community education revenue, the community 
 12.33  education levy shall be determined according to subdivision 6a. 
 12.34     Sec. 18.  Minnesota Statutes 1996, section 124.2713, 
 12.35  subdivision 6a, is amended to read: 
 12.36     Subd. 6a.  [COMMUNITY EDUCATION LEVY; DISTRICTS OFF THE 
 13.1   FORMULA.] If the amount of the community education levy for a 
 13.2   district exceeds the district's community education revenue, the 
 13.3   amount of the community education levy is limited to the sum of: 
 13.4      (1) the district's community education revenue according to 
 13.5   subdivision 1; plus. 
 13.6      (2) the amount of the aid reduction for the same fiscal 
 13.7   year according to subdivision 6b.  
 13.8      For purposes of statutory cross-reference, a levy made 
 13.9   according to this subdivision is the levy made according to 
 13.10  subdivision 6.  
 13.11     Sec. 19.  Minnesota Statutes 1996, section 124.2727, 
 13.12  subdivision 6a, is amended to read: 
 13.13     Subd. 6a.  [FISCAL YEAR 1999 DISTRICT COOPERATION REVENUE.] 
 13.14  A district's cooperation revenue for fiscal year 1999 is equal 
 13.15  to the greater of $67 times the actual pupil units or $25,000. 
 13.16     Sec. 20.  Minnesota Statutes 1996, section 124.2727, 
 13.17  subdivision 6c, is amended to read: 
 13.18     Subd. 6c.  [FISCAL YEAR 1999 DISTRICT COOPERATION AID.] A 
 13.19  district's cooperation aid for fiscal year 1999 is the 
 13.20  difference between its district cooperation revenue and its 
 13.21  district cooperation levy.  If a district does not levy the 
 13.22  entire amount permitted, aid must be reduced in proportion to 
 13.23  the actual amount levied. 
 13.24     Sec. 21.  Minnesota Statutes 1996, section 124.273, is 
 13.25  amended by adding a subdivision to read: 
 13.26     Subd. 8.  [ALLOCATIONS FROM COOPERATIVE UNITS.] For the 
 13.27  purposes of this section and section 124.321, pupils of limited 
 13.28  English proficiency enrolled in a cooperative or intermediate 
 13.29  school district unit shall be counted by the school district of 
 13.30  residence, and the cooperative unit shall allocate its approved 
 13.31  expenditures for limited English proficiency programs among 
 13.32  participating school districts.  Limited English proficiency aid 
 13.33  for services provided by a cooperative or intermediate school 
 13.34  district shall be paid to the participating school districts. 
 13.35     Sec. 22.  Minnesota Statutes 1996, section 124.3201, 
 13.36  subdivision 5, is amended to read: 
 14.1      Subd. 5.  [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] (a) 
 14.2   A school district's special education revenue for fiscal year 
 14.3   1996 and later equals the state total special education revenue, 
 14.4   minus the amount determined under paragraph (b), times the ratio 
 14.5   of the district's adjusted special education base revenue to the 
 14.6   state total adjusted special education base revenue.  If the 
 14.7   state board of education modifies its rules for special 
 14.8   education in a manner that increases a school district's special 
 14.9   education obligations or service requirements, the commissioner 
 14.10  of children, families, and learning shall annually increase each 
 14.11  district's special education revenue by the amount necessary to 
 14.12  compensate for the increased service requirements.  The 
 14.13  additional revenue equals the cost in the current year 
 14.14  attributable to rule changes not reflected in the computation of 
 14.15  special education base revenue, multiplied by the appropriate 
 14.16  percentages from subdivision 2. 
 14.17     (b) Notwithstanding paragraph (a), if the special education 
 14.18  base revenue for a district equals zero, the special education 
 14.19  revenue equals the amount computed according to subdivision 2 
 14.20  using current year data.  
 14.21     (c) Notwithstanding paragraphs (a) and (b), if the special 
 14.22  education base revenue for a district is greater than zero, and 
 14.23  the base year amount for the district under subdivision 2, 
 14.24  paragraph (a), clause (7), equals zero, the special education 
 14.25  revenue equals the sum of the amount computed according to 
 14.26  paragraph (a), plus the amount computed according to subdivision 
 14.27  2, paragraph (a), clause (7), using current year data. 
 14.28     Sec. 23.  Minnesota Statutes 1996, section 124.85, 
 14.29  subdivision 4, is amended to read: 
 14.30     Subd. 4.  [DISTRICT ACTION.] A district may enter into a 
 14.31  guaranteed energy savings contract with a qualified provider if, 
 14.32  after review of the report and the commissioner's evaluation if 
 14.33  requested, the board finds that the amount it would spend on the 
 14.34  energy conservation measures recommended in the report is not 
 14.35  likely to exceed the amount to be saved in energy and operation 
 14.36  costs over 15 years from the date of installation if the 
 15.1   recommendations in the report were followed, and the qualified 
 15.2   provider provides a written guarantee that the energy or 
 15.3   operating cost savings will meet or exceed the costs of the 
 15.4   system.  The guaranteed energy savings contract may provide for 
 15.5   payments over a period of time, not to exceed 15 years.  
 15.6   Notwithstanding section 121.912, a district annually may 
 15.7   transfer from the general fund to the capital expenditure fund 
 15.8   reserve for operating capital account an amount up to the amount 
 15.9   saved in energy and operation costs as a result of guaranteed 
 15.10  energy savings contracts. 
 15.11     Sec. 24.  Minnesota Statutes 1996, section 124A.03, 
 15.12  subdivision 2b, is amended to read: 
 15.13     Subd. 2b.  [REFERENDUM DATE.] In addition to the referenda 
 15.14  allowed in subdivision 2, clause (a), the commissioner may 
 15.15  authorize a referendum for a different day.  
 15.16     (a) The commissioner may grant authority to a district to 
 15.17  hold a referendum on a different day if the district is in 
 15.18  statutory operating debt and has an approved plan or has 
 15.19  received an extension from the department to file a plan to 
 15.20  eliminate the statutory operating debt.  
 15.21     (b) The commissioner may grant authority for a district to 
 15.22  hold a referendum on a different day if:  (1) the district will 
 15.23  conduct a bond election under chapter 475 on that same day; and 
 15.24  (2) the proceeds of the referendum will provide only additional 
 15.25  operating revenue necessitated by the facility complementing the 
 15.26  purpose for which bonding authority is sought.  The commissioner 
 15.27  may only grant authority under this paragraph if the district 
 15.28  demonstrates to the commissioner's satisfaction that the 
 15.29  district's ability to operate the new facility or achieve 
 15.30  efficiencies with the purchases connected to the proceeds of the 
 15.31  bond sale will be significantly affected if the operating 
 15.32  referendum is not conducted until the November general 
 15.33  election.  Authority under this paragraph expires November 30, 
 15.34  1998. 
 15.35     (c) The commissioner must approve, deny, or modify each 
 15.36  district's request for a referendum levy on a different day 
 16.1   within 60 days of receiving the request from a district. 
 16.2      Sec. 25.  Minnesota Statutes 1996, section 124A.03, 
 16.3   subdivision 3c, is amended to read: 
 16.4      Subd. 3c.  [REFERENDUM ALLOWANCE REDUCTION.] For fiscal 
 16.5   year 1998 and later, a district's referendum allowance for 
 16.6   referendum authority under subdivision 1c is reduced as provided 
 16.7   in this subdivision.  
 16.8      (a) For referendum revenue authority approved before June 
 16.9   1, 1996, and effective for fiscal year 1997, the reduction 
 16.10  equals the amount of the reduction computed for fiscal year 1997 
 16.11  under subdivision 3b.  
 16.12     (b) For referendum revenue authority approved before June 
 16.13  1, 1996, and effective beginning in fiscal year 1998, the 
 16.14  reduction equals the amount of the reduction computed for fiscal 
 16.15  year 1998 under subdivision 3b. 
 16.16     (c) For referendum revenue authority approved after May 31, 
 16.17  1996, there is no reduction.  
 16.18     (d) For districts with more than one referendum authority, 
 16.19  the reduction shall be computed separately for each authority.  
 16.20  The reduction shall be applied first to authorities levied 
 16.21  against tax capacity, and then to authorities levied against 
 16.22  referendum market value.  For districts with more than one 
 16.23  authority levied against net tax capacity or against referendum 
 16.24  market value, the referendum allowance reduction shall be 
 16.25  applied first to the authority with the earliest expiration date.
 16.26     (e) When referendum authority approved before June 1, 1996, 
 16.27  expires, the referendum allowance reduction for a district shall 
 16.28  be decreased by the amount of the decrease in the district's 
 16.29  total referendum allowance under subdivision 1c.  For districts 
 16.30  with more than one referendum authority remaining after the 
 16.31  expiration, the amount of any remaining allowance reduction 
 16.32  shall be reallocated among the remaining referendum authority 
 16.33  approved before June 1, 1996, according to paragraph (d). 
 16.34     (f) For a newly reorganized district created after July 1, 
 16.35  1996, the referendum revenue reduction equals the lesser of the 
 16.36  amount calculated for the combined district, or the sum of the 
 17.1   amounts by which each of the reorganizing district's 
 17.2   supplemental revenue reduction exceeds its respective 
 17.3   supplemental revenue allowances calculated for the year 
 17.4   preceding the year of reorganization. 
 17.5      Sec. 26.  Minnesota Statutes 1997 Supplement, section 
 17.6   124A.036, subdivision 5, is amended to read: 
 17.7      Subd. 5.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
 17.8   education aid for districts must be adjusted for each pupil 
 17.9   attending a nonresident district under sections 120.062, 
 17.10  120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22.  
 17.11  The adjustments must be made according to this subdivision. 
 17.12     (a) General education aid paid to a resident district must 
 17.13  be reduced by an amount equal to the general education revenue 
 17.14  exclusive of compensatory basic skills revenue attributable to 
 17.15  the pupil in the resident district. 
 17.16     (b) General education aid paid to a district serving a 
 17.17  pupil in programs listed in this subdivision shall be increased 
 17.18  by an amount equal to the general education revenue exclusive of 
 17.19  compensatory basic skills revenue attributable to the pupil in 
 17.20  the nonresident district.  
 17.21     (c) If the amount of the reduction to be made from the 
 17.22  general education aid of the resident district is greater than 
 17.23  the amount of general education aid otherwise due the district, 
 17.24  the excess reduction must be made from other state aids due the 
 17.25  district. 
 17.26     (d) The district of residence shall pay tuition to a 
 17.27  district or an area learning center, operated according to 
 17.28  paragraph (e), providing special instruction and services to a 
 17.29  pupil with a disability, as defined in section 120.03, or a 
 17.30  pupil, as defined in section 120.181, who is enrolled in a 
 17.31  program listed in this subdivision.  The tuition shall be equal 
 17.32  to (1) the actual cost of providing special instruction and 
 17.33  services to the pupil, including a proportionate amount for debt 
 17.34  service and for capital expenditure facilities and equipment, 
 17.35  and debt service but not including any amount for 
 17.36  transportation, minus (2) the amount of general education aid 
 18.1   and special education aid, attributable to that pupil, that is 
 18.2   received by the district providing special instruction and 
 18.3   services. 
 18.4      (e) An area learning center operated by a service 
 18.5   cooperative, intermediate district, education district, or a 
 18.6   joint powers cooperative may elect through the action of the 
 18.7   constituent boards to charge tuition for pupils rather than to 
 18.8   calculate general education aid adjustments under paragraph (a), 
 18.9   (b), or (c).  The tuition must be equal to the greater of the 
 18.10  average general education revenue per pupil unit attributable to 
 18.11  the pupil, or the actual cost of providing the instruction, 
 18.12  excluding transportation costs, if the pupil meets the 
 18.13  requirements of section 120.03 or 120.181. 
 18.14     Sec. 27.  Minnesota Statutes 1996, section 124A.036, 
 18.15  subdivision 6, is amended to read: 
 18.16     Subd. 6.  [CHARTER SCHOOLS.] (a) The general education aid 
 18.17  for districts must be adjusted for each pupil attending a 
 18.18  charter school under section 120.064.  The adjustments must be 
 18.19  made according to this subdivision. 
 18.20     (b) General education aid paid to a resident district must 
 18.21  be reduced by an amount equal to the general education revenue 
 18.22  exclusive of compensatory basic skills revenue. 
 18.23     (c) General education aid paid to a district in which a 
 18.24  charter school not providing transportation according to section 
 18.25  120.064, subdivision 15, is located shall be increased by an 
 18.26  amount equal to the product of:  (1) the sum of $170 an amount 
 18.27  equal to the product of the formula allowance according to 
 18.28  section 124A.22, subdivision 2, times .0485, plus the 
 18.29  transportation sparsity allowance for the district, plus the 
 18.30  transportation transition allowance for the district; times (2) 
 18.31  the pupil units attributable to the pupil.  
 18.32     (d) If the amount of the reduction to be made from the 
 18.33  general education aid of the resident district is greater than 
 18.34  the amount of general education aid otherwise due the district, 
 18.35  the excess reduction must be made from other state aids due the 
 18.36  district. 
 19.1      Sec. 28.  Minnesota Statutes 1997 Supplement, section 
 19.2   124A.22, subdivision 1, is amended to read: 
 19.3      Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) For fiscal 
 19.4   years 1997 and 1998, the general education revenue for each 
 19.5   district equals the sum of the district's basic revenue, 
 19.6   compensatory education revenue, secondary sparsity revenue, 
 19.7   elementary sparsity revenue, transportation sparsity revenue, 
 19.8   total operating capital revenue, transition revenue, and 
 19.9   supplemental revenue. 
 19.10     (b) For fiscal year 1999 and thereafter, the general 
 19.11  education revenue for each district equals the sum of the 
 19.12  district's basic revenue, basic skills revenue, training and 
 19.13  experience revenue, secondary sparsity revenue, elementary 
 19.14  sparsity revenue, transportation sparsity revenue, total 
 19.15  operating capital revenue, graduation standards implementation 
 19.16  revenue, transition revenue, and supplemental revenue. 
 19.17     Sec. 29.  Minnesota Statutes 1997 Supplement, section 
 19.18  124A.22, subdivision 2, is amended to read: 
 19.19     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 19.20  district equals the formula allowance times the actual pupil 
 19.21  units for the school year.  The formula allowance for fiscal 
 19.22  year 1997 is $3,505.  The formula allowance for fiscal year 1998 
 19.23  is $3,581 and the formula allowance for fiscal year 1999 and 
 19.24  subsequent fiscal years is $3,530.  The formula allowance for 
 19.25  fiscal year 2000 and subsequent fiscal years is $3,597. 
 19.26     Sec. 30.  Minnesota Statutes 1997 Supplement, section 
 19.27  124A.22, subdivision 13b, is amended to read: 
 19.28     Subd. 13b.  [TRANSITION ALLOWANCE.] (a) A district's 
 19.29  transportation transition allowance for fiscal year 1998 and 
 19.30  later equals the result of the following: 
 19.31     (1) if the result in subdivision 13a, paragraph (a), clause 
 19.32  (iii), for fiscal year 1998 is less than the fiscal year 1996 
 19.33  base allowance, the transportation transition allowance equals 
 19.34  the fiscal year 1996 base allowance minus the result in 
 19.35  subdivision 13a, paragraph (a), clause (iii); or 
 19.36     (2) if the result in subdivision 13a, paragraph (a), clause 
 20.1   (iii), for fiscal year 1998 and later is greater than or equal 
 20.2   to the fiscal year 1996 base allowance, the transportation 
 20.3   transition allowance equals zero. 
 20.4      (b) For fiscal years 1997 and 1998, a district's training 
 20.5   and experience transition allowance is equal to the training and 
 20.6   experience revenue the district would have received under 
 20.7   Minnesota Statutes 1994, section 124A.22, subdivision 4, divided 
 20.8   by the actual pupil units for fiscal year 1997 minus $130.  For 
 20.9   fiscal year 1999 and later, a district's training and experience 
 20.10  transition allowance equals zero.  
 20.11     If the training and experience transition allowance is less 
 20.12  than zero, the reduction shall be determined according to the 
 20.13  following schedule: 
 20.14     (1) for fiscal year 1997, the reduction is equal to .9 
 20.15  times the amount initially determined; 
 20.16     (2) for fiscal year 1998, the reduction is equal to .75 
 20.17  times the amount initially determined; and 
 20.18     (c) A district's transition compensatory transition 
 20.19  allowance equals the greater of zero or the difference between:  
 20.20     (1) the amount of compensatory revenue the district would 
 20.21  have received under subdivision 3 for fiscal year 1998 computed 
 20.22  using a basic formula allowance of $3,281; and 
 20.23     (2) the amount the district receives under subdivision 3; 
 20.24  divided by 
 20.25     (3) the district's actual pupil units for fiscal year 1998. 
 20.26     (c) A district's cooperation transition allowance for 
 20.27  fiscal year 2000 and later equals the greater of zero or the 
 20.28  difference between:  
 20.29     (1) $25,000; and 
 20.30     (2) $67 times the district's actual pupil units for fiscal 
 20.31  year 2000. 
 20.32     (d) A district's transition allowance for fiscal year 1998 
 20.33  is equal to the sum of its transportation transition allowance, 
 20.34  its training and experience transition allowance, and its 
 20.35  transition compensatory allowance.  A district's transition 
 20.36  allowance for fiscal year 1999 and thereafter is equal to the 
 21.1   sum of its transportation transition allowance and its 
 21.2   transition compensatory transition allowance.  A district's 
 21.3   transition allowance for fiscal year 2000 and thereafter is 
 21.4   equal to the sum of its transportation transition allowance, its 
 21.5   compensatory transition allowance, and its cooperation 
 21.6   transition allowance. 
 21.7      Sec. 31.  Minnesota Statutes 1996, section 124A.22, is 
 21.8   amended by adding a subdivision to read: 
 21.9      Subd. 14.  [GRADUATION STANDARDS IMPLEMENTATION 
 21.10  REVENUE.] (a) A school district's graduation standards 
 21.11  implementation revenue is equal to $52 times its actual pupil 
 21.12  units for fiscal year 1999 plus $14 times its actual pupil units 
 21.13  for fiscal year 1999 if the district implements the graduation 
 21.14  rule under section 121.1114, paragraph (b), and $43 per pupil 
 21.15  unit for all districts for fiscal year 2000 and later.  
 21.16  Graduation standards implementation revenue is reserved and must 
 21.17  be used according to paragraphs (b) and (c). 
 21.18     (b) For fiscal year 1999, revenue must be reserved for 
 21.19  programs according to clauses (1) to (3). 
 21.20     (1) At least $20 per actual pupil unit plus $14 per actual 
 21.21  pupil unit for a district that implements the graduation rule 
 21.22  under section 121.1114, paragraph (b), must be allocated to 
 21.23  school sites in proportion to the number of students enrolled at 
 21.24  each school site weighted according to section 124.17, 
 21.25  subdivision 1, and is reserved for programs designed to enhance 
 21.26  the implementation of the graduation rule through intensive 
 21.27  staff development and decentralized decision making. 
 21.28     (2) At least $5 per actual pupil unit is reserved for 
 21.29  gifted and talented programs that are integrated with the 
 21.30  graduation rule.  This aid must supplement, not supplant, money 
 21.31  spent on gifted and talented programs authorized under Laws 
 21.32  1997, First Special Session chapter 4, article 5, section 24. 
 21.33     (3) Remaining aid under this paragraph must be used: 
 21.34     (i) for technology purposes including wiring, network 
 21.35  connections, and other technology-related infrastructure 
 21.36  improvements; purchase or lease of computer software and 
 22.1   hardware to be used in classrooms and for instructional 
 22.2   purposes; purchase or lease of interactive television network 
 22.3   equipment and network support; purchase or lease of computer 
 22.4   software and hardware designed to support special needs 
 22.5   programming and limited English proficiency programming; network 
 22.6   and technical support; and purchase of textbooks and other 
 22.7   instructional materials; or 
 22.8      (ii) to reduce class size. 
 22.9      (c) For fiscal year 2000 and later, revenue must be 
 22.10  allocated to school sites and reserved for programs designed to 
 22.11  enhance the implementation of the graduation rule through:  (1) 
 22.12  staff development programs; (2) technology purposes under 
 22.13  paragraph (b), clause (3); (3) gifted and talented programs; or 
 22.14  (4) class size reduction programs based at the school site. 
 22.15     (d) To the extent possible, school districts shall make 
 22.16  opportunities for graduation standards implementation available 
 22.17  to teachers employed by intermediate school districts.  If the 
 22.18  commissioner determines that the supplemental appropriation made 
 22.19  for this subdivision under section 40, subdivision 2, is in 
 22.20  excess of the amount needed for this subdivision, the 
 22.21  commissioner shall make equal payments of one-third of the 
 22.22  excess to each intermediate school district for the purpose of 
 22.23  paragraph (a). 
 22.24     (e) A district that qualifies for the referendum allowance 
 22.25  reduction under section 124A.03, subdivision 3c, shall receive a 
 22.26  graduation standards implementation equity adjustment.  In 
 22.27  fiscal year 1999, the equity adjustment aid is equal to $29 per 
 22.28  actual pupil unit.  In fiscal year 2001 and thereafter, the 
 22.29  equity adjustment is equal to $20 per actual pupil unit. 
 22.30     Sec. 32.  [124A.226] [RESERVED REVENUE FOR DISTRICT 
 22.31  COOPERATION.] 
 22.32     A district that was a member of an intermediate school 
 22.33  district organized pursuant to chapter 136D on July 1, 1996, 
 22.34  must place a portion of its general education revenue in a 
 22.35  reserved account for instructional services from entities formed 
 22.36  for cooperative services for special education programs and 
 23.1   secondary vocational programs.  The amount reserved is equal to 
 23.2   the levy made according to Minnesota Statutes 1993, section 
 23.3   124.2727, subdivision 6, for taxes payable in 1994 divided by 
 23.4   the actual pupil units in the intermediate school district for 
 23.5   fiscal year 1995 times the number of actual pupil units in the 
 23.6   school district in 1995.  The district must use 5/11 of the 
 23.7   revenue for special education and 6/11 of the revenue for 
 23.8   secondary vocational education.  The district must demonstrate 
 23.9   that the revenue is being used to provide the full range of 
 23.10  special education and secondary vocational programs and services 
 23.11  available to each child served by the intermediate.  The 
 23.12  secondary vocational programs and services must meet the 
 23.13  requirements established in an articulation agreement developed 
 23.14  between the state board of education and the board of trustees 
 23.15  of the Minnesota state colleges and universities. 
 23.16     A district that was a member of an education district 
 23.17  organized pursuant to section 122.91 on July 1, 1999, must place 
 23.18  a portion of its general education revenue in a reserve account 
 23.19  for instructional services from entities formed for cooperative 
 23.20  services.  Services may include secondary vocational programs, 
 23.21  special education programs, staff development, and gifted and 
 23.22  talented instruction.  The amount reserved is equal to $50 per 
 23.23  pupil unit times the actual number of pupil units in the 
 23.24  district. 
 23.25     Sec. 33.  Minnesota Statutes 1997 Supplement, section 
 23.26  124A.23, subdivision 1, is amended to read: 
 23.27     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 23.28  commissioner shall establish the general education tax rate by 
 23.29  July 1 of each year for levies payable in the following year.  
 23.30  The general education tax capacity rate shall be a rate, rounded 
 23.31  up to the nearest hundredth of a percent, that, when applied to 
 23.32  the adjusted net tax capacity for all districts, raises the 
 23.33  amount specified in this subdivision.  The general education tax 
 23.34  rate shall be the rate that raises $1,359,000,000 for fiscal 
 23.35  year 1998 and $1,385,500,000 for fiscal year 1999 and, 
 23.36  $1,384,900,000 for fiscal year 2000, and $1,387,100,000 for 
 24.1   fiscal year 2001, and later fiscal years.  The general education 
 24.2   tax rate may not be changed due to changes or corrections made 
 24.3   to a district's adjusted net tax capacity after the tax rate has 
 24.4   been established.  If the levy target for fiscal year 1999 or 
 24.5   fiscal year 2000 is changed by another law enacted during the 
 24.6   1997 or 1998 session, the commissioner shall reduce the general 
 24.7   education levy target in this bill section by the amount of the 
 24.8   reduction in the enacted law. 
 24.9      Sec. 34.  Minnesota Statutes 1997 Supplement, section 
 24.10  124A.28, subdivision 1, is amended to read: 
 24.11     Subdivision 1.  [USE OF THE REVENUE.] The compensatory 
 24.12  education revenue under section 124A.22, subdivision 3, and the 
 24.13  portion of the transition revenue adjustment under section 
 24.14  124A.22, subdivision 13c, attributable to the compensatory 
 24.15  transition allowance under section 124A.22, subdivision 13b, 
 24.16  paragraph (b), must be used to meet the educational needs of 
 24.17  pupils who enroll under-prepared to learn and whose progress 
 24.18  toward meeting state or local content or performance standards 
 24.19  is below the level that is appropriate for learners of their 
 24.20  age.  Any of the following may be provided to meet these 
 24.21  learners' needs: 
 24.22     (1) direct instructional services under the assurance of 
 24.23  mastery program according to section 124.3111; 
 24.24     (2) remedial instruction in reading, language arts, 
 24.25  mathematics, other content areas, or study skills to improve the 
 24.26  achievement level of these learners; 
 24.27     (3) additional teachers and teacher aides to provide more 
 24.28  individualized instruction to these learners through individual 
 24.29  tutoring, lower instructor-to-learner ratios, or team teaching; 
 24.30     (4) a longer school day or week during the regular school 
 24.31  year or through a summer program that may be offered directly by 
 24.32  the site or under a performance-based contract with a 
 24.33  community-based organization; 
 24.34     (5) comprehensive and ongoing staff development consistent 
 24.35  with district and site plans according to section 126.70, for 
 24.36  teachers, teacher aides, principals, and other personnel to 
 25.1   improve their ability to identify the needs of these learners 
 25.2   and provide appropriate remediation, intervention, 
 25.3   accommodations, or modifications; 
 25.4      (6) instructional materials and technology appropriate for 
 25.5   meeting the individual needs of these learners; 
 25.6      (7) programs to reduce truancy, encourage completion of 
 25.7   high school, enhance self-concept, provide health services, 
 25.8   provide nutrition services, provide a safe and secure learning 
 25.9   environment, provide coordination for pupils receiving services 
 25.10  from other governmental agencies, provide psychological services 
 25.11  to determine the level of social, emotional, cognitive, and 
 25.12  intellectual development, and provide counseling services, 
 25.13  guidance services, and social work services; 
 25.14     (8) bilingual programs, bicultural programs, and programs 
 25.15  for learners of limited English proficiency; 
 25.16     (9) all day kindergarten; 
 25.17     (10) extended school day and extended school year programs; 
 25.18     (11) substantial parent involvement in developing and 
 25.19  implementing remedial education or intervention plans for a 
 25.20  learner, including learning contracts between the school, the 
 25.21  learner, and the parent that establish achievement goals and 
 25.22  responsibilities of the learner and the learner's parent or 
 25.23  guardian; and 
 25.24     (12) other methods to increase achievement, as needed.  
 25.25     Sec. 35.  Minnesota Statutes 1997 Supplement, section 
 25.26  124A.28, subdivision 1a, is amended to read: 
 25.27     Subd. 1a.  [BUILDING ALLOCATION.] (a) For fiscal years 1999 
 25.28  and 2000, upon approval by the commissioner, a district must 
 25.29  allocate at least the difference between its compensatory 
 25.30  revenue for that year and 95 percent of the amount of 
 25.31  compensatory revenue that the district would have received under 
 25.32  section 124A.22, subdivision 3, for fiscal year 1998 computed 
 25.33  using a basic formula allowance of $3,281 to each school 
 25.34  building in the district where the children who have generated 
 25.35  the revenue are served. 
 25.36     (b) A district may allocate compensatory revenue not 
 26.1   otherwise allocated under paragraph (a) to school sites 
 26.2   accordingly to a plan adopted by the school board. 
 26.3      (c) For the purposes of this section and section 124.17, 
 26.4   subdivision 1d, "building" means education site as defined in 
 26.5   section 123.951, subdivision 1. 
 26.6      (d) If the pupil is served at a site other than one owned 
 26.7   and operated by the district, the revenue shall be paid to the 
 26.8   district and used for services for pupils who generate the 
 26.9   revenue. 
 26.10     Sec. 36.  Minnesota Statutes 1996, section 124A.29, 
 26.11  subdivision 1, is amended to read: 
 26.12     Subdivision 1.  [STAFF DEVELOPMENT AND PARENTAL INVOLVEMENT 
 26.13  REVENUE.] A district is encouraged required to reserve general 
 26.14  education revenue an amount equal to at least one percent of the 
 26.15  basic formula allowance for in-service education for programs 
 26.16  under section 126.77, subdivision 2, for staff development 
 26.17  plans, including plans for challenging instructional activities 
 26.18  and experiences under section 126.70, and for curriculum 
 26.19  development and programs, other in-service education, teachers' 
 26.20  workshops, teacher conferences, the cost of substitute teachers 
 26.21  staff development purposes, and other related costs for staff 
 26.22  development efforts.  Districts may expend an additional amount 
 26.23  of basic revenue for staff development based on their needs.  
 26.24  The school board shall initially allocate 50 percent of the 
 26.25  revenue to each school site in the district on a per teacher 
 26.26  basis, which shall be retained by the school site until used.  
 26.27  The board may retain 25 percent to be used for district wide 
 26.28  staff development efforts.  The remaining 25 percent of the 
 26.29  revenue shall be used to make grants to school sites that 
 26.30  demonstrate exemplary use of allocated staff development 
 26.31  revenue.  A grant may be used for any purpose authorized under 
 26.32  section 126.70, 126.77, subdivision 2, or for the costs of 
 26.33  curriculum development and programs, other in-service education, 
 26.34  teachers' workshops, teacher conferences, substitute teachers 
 26.35  for staff development purposes, and other staff development 
 26.36  efforts, and determined by the site decision-making team.  The 
 27.1   site decision-making team must demonstrate to the school board 
 27.2   the extent to which staff at the site have met the outcomes of 
 27.3   the program.  The board may withhold a portion of initial 
 27.4   allocation of revenue if the staff development outcomes are not 
 27.5   being met. 
 27.6      Sec. 37.  Minnesota Statutes 1996, section 124A.292, 
 27.7   subdivision 3, is amended to read: 
 27.8      Subd. 3.  [STAFF DEVELOPMENT LEVY.] A district's levy 
 27.9   equals its revenue times the lesser of one or the ratio of: 
 27.10     (1) the quotient derived by dividing the district's 
 27.11  adjusted net tax capacity for the year before the year the levy 
 27.12  is certified by the district's actual pupil units for the school 
 27.13  year to which the levy is attributable, to 
 27.14     (2) the equalizing factor for the school year to which the 
 27.15  levy is attributable the number of teachers at the site times 
 27.16  $8.15. 
 27.17     Sec. 38.  Minnesota Statutes 1996, section 124A.30, is 
 27.18  amended to read: 
 27.19     124A.30 [STATEWIDE AVERAGE REVENUE.] 
 27.20     By October 1 of each year the commissioner shall estimate 
 27.21  the statewide average adjusted general education revenue per 
 27.22  actual pupil unit and the range disparity in adjusted general 
 27.23  education revenue among pupils and districts by computing the 
 27.24  difference between the fifth and the ratio of the ninety-fifth 
 27.25  percentiles percentile to the fifth percentile of adjusted 
 27.26  general education revenue.  The commissioner must provide that 
 27.27  information to all school districts. 
 27.28     If the disparity in adjusted general education revenue as 
 27.29  measured by the difference between the fifth and ratio of the 
 27.30  ninety-fifth percentiles percentile to the fifth percentile 
 27.31  increases in any year, the commissioner must propose a shall 
 27.32  recommend to the legislature options for change in the general 
 27.33  education formula that will limit the disparity in adjusted 
 27.34  general education revenue to no more than the disparity for the 
 27.35  previous school year.  The commissioner must submit the proposal 
 27.36  recommended options to the education committees of the 
 28.1   legislature by January 15. 
 28.2      For purposes of this section, adjusted general revenue 
 28.3   means the sum of basic revenue under section 124A.22, 
 28.4   subdivision 2; supplemental revenue under section 124A.22, 
 28.5   subdivisions 8 and 9; transition revenue under section 124.22, 
 28.6   subdivision 13c; and referendum revenue under section 124A.03. 
 28.7      Sec. 39.  Laws 1992, chapter 499, article 7, section 31, is 
 28.8   amended to read: 
 28.9      Sec. 31.  [REPEALER.] 
 28.10     Minnesota Statutes 1990, sections 124A.02, subdivision 24; 
 28.11  124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 
 28.12  124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 
 28.13  Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 
 28.14  23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 
 28.15  124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 
 28.16  124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 
 28.17  1; and 124A.29, subdivision 1, are repealed effective June 30, 
 28.18  1999 2001; Laws 1991, chapter 265, article 7, section 35, is 
 28.19  repealed. 
 28.20     Sec. 40.  Laws 1997, First Special Session chapter 4, 
 28.21  article 1, section 58, is amended to read: 
 28.22     Sec. 58.  [BUS PURCHASE LEVY.] 
 28.23     (a) For 1997 taxes payable in 1998, a school district may 
 28.24  levy the amount necessary to eliminate the deficit in the 
 28.25  reserved fund balance account for bus purchases in its 
 28.26  transportation fund as of June 30, 1996. 
 28.27     (b) For 1998 taxes payable in 1999, a school district that 
 28.28  had a positive balance in the reserved fund balance account for 
 28.29  bus purchases in its transportation fund as of June 30, 1996, 
 28.30  but that had already entered into a contract for new buses or 
 28.31  ordered new buses that had not been received prior to June 30, 
 28.32  1996, may levy an amount equal to the difference between the 
 28.33  purchase price of the buses and its balance in the reserve 
 28.34  account for bus purchases. 
 28.35     Sec. 41.  Laws 1997, First Special Session chapter 4, 
 28.36  article 1, section 61, subdivision 3, is amended to read: 
 29.1      Subd. 3.  [EQUALIZING FACTORS.] The commissioner shall 
 29.2   adjust each equalizing factor established using adjusted net tax 
 29.3   capacity per actual pupil unit under Minnesota Statutes, 
 29.4   chapters 124 and 124A, by dividing the equalizing factor by the 
 29.5   ratio of the statewide tax capacity as calculated using the 
 29.6   class rates in effect for assessment year 1996 to the statewide 
 29.7   tax capacity using the class rates for that assessment year. 
 29.8      Sec. 42.  Laws 1997, First Special Session chapter 4, 
 29.9   article 5, section 28, subdivision 12, is amended to read: 
 29.10     Subd. 12.  [GRADUATION RULE IMPLEMENTATION AT THE SITE 
 29.11  AID.] For graduation rule implementation: 
 29.12       $10,000,000     .....     1998
 29.13     (a) This appropriation shall be paid to districts according 
 29.14  to paragraph (b).  The purpose of the aid is to accelerate the 
 29.15  implementation of the graduation rule throughout all education 
 29.16  sites in the district through intensive staff development and 
 29.17  decentralized decision making.  The board shall work with the 
 29.18  teaching staff in the district to determine the most effective 
 29.19  staff development processes to assure an acceleration of the 
 29.20  implementation.  This appropriation is one-time only. 
 29.21     (b) A district shall receive aid equal to $10 times the 
 29.22  number of fund balance pupil units in the district for fiscal 
 29.23  year 1998 excluding pupil units attributable to shared time 
 29.24  pupils.  At least 30 percent must be used for the purposes of 
 29.25  paragraph (a). 
 29.26     Sec. 43.  [COMPENSATION PUPIL UNITS; FISCAL YEAR 1998.] 
 29.27     Notwithstanding Minnesota Statutes, section 124.17, 
 29.28  subdivision 1d, paragraphs (a) to (c), for fiscal year 1998 
 29.29  only, compensation revenue pupil units for buildings with no 
 29.30  free or reduced price lunch counts for fiscal year 1997 because 
 29.31  the site did not participate in the national school lunch 
 29.32  program, or for a contracted alternative program for which no 
 29.33  count was reported to the department of children, families, and 
 29.34  learning, shall be computed using data for the current fiscal 
 29.35  year. 
 29.36     Sec. 44.  [ONE-TIME DISTRICT-LEVEL COMPENSATORY REVENUE FOR 
 30.1   TRANSITION.] 
 30.2      Subdivision 1.  [ELIGIBILITY.] For fiscal year 1999 only, a 
 30.3   district is eligible for supplemental compensatory revenue if 
 30.4   its growth factor is less than 35 percent. 
 30.5      Subd. 2.  [GROWTH FACTOR.] A school district's growth 
 30.6   factor equals the ratio of: 
 30.7      (1) its fiscal year 1999 compensatory revenue per actual 
 30.8   pupil unit for that year less the amount of compensatory revenue 
 30.9   divided by the district's actual pupil units for fiscal year 
 30.10  1998 that the district would have received under Minnesota 
 30.11  Statutes, section 124A.22, subdivision 3, for fiscal year 1998 
 30.12  computed using a basic formula allowance of $3,281; to 
 30.13     (2) the amount of compensatory revenue divided by the 
 30.14  district's actual pupil units for fiscal year 1998 that the 
 30.15  district would have received under Minnesota Statutes, section 
 30.16  124A.22, subdivision 3, for fiscal year 1998 computed using a 
 30.17  basic formula allowance of $3,281. 
 30.18     Subd. 3.  [REVENUE.] Supplemental compensatory revenue 
 30.19  equals the total number of compensation revenue pupil units 
 30.20  computed according to Minnesota Statutes, section 124.17, 
 30.21  subdivision 1d, at each site for fiscal year 1998, times $216. 
 30.22     Subd. 4.  [ALLOCATION.] Revenue under this section is 
 30.23  allocated to school districts, and must be used according to 
 30.24  Minnesota Statutes, section 124A.28, subdivision 1. 
 30.25     Sec. 45.  [SUPPLEMENTAL REVENUE.] 
 30.26     Supplemental revenue for fiscal years 1998 and later under 
 30.27  Minnesota Statutes, section 124A.22, subdivision 8, is increased 
 30.28  by the following amounts: 
 30.29     (1) for independent school district No. 593, Crookston, 
 30.30  $117,000; 
 30.31     (2) for independent school district No. 361, International 
 30.32  Falls, $107,000; 
 30.33     (3) for independent school district No. 706, Virginia, 
 30.34  $43,000; and 
 30.35     (4) for independent school district No. 2154, 
 30.36  Eveleth-Gilbert, $8,000. 
 31.1      Supplemental revenue increased under this section is not 
 31.2   subject to reduction under Minnesota Statutes, section 124A.22, 
 31.3   subdivision 9. 
 31.4      Sec. 46.  [INDEPENDENT SCHOOL DISTRICT NO. 2862, JACKSON 
 31.5   COUNTY CENTRAL; REFERENDUM AUTHORITY.] 
 31.6      Subdivision 1.  [REFERENDUM REVENUE ADJUSTMENT.] 
 31.7   Notwithstanding Minnesota Statutes, section 124A.03, referendum 
 31.8   equalization aid for fiscal year 1998 for independent school 
 31.9   district No. 2862, Jackson County Central, is $72,000, and the 
 31.10  district's net tax capacity referendum levy is $61,000. 
 31.11     Subd. 2.  [AID ADJUSTMENT.] The department of children, 
 31.12  families, and learning shall adjust the aid payments for fiscal 
 31.13  year 1998 to independent school district No. 2862, Jackson 
 31.14  County Central, according to subdivision 1. 
 31.15     Subd. 3.  [LEVY ADJUSTMENT.] For taxes payable in 1999, the 
 31.16  department of children, families, and learning shall make a levy 
 31.17  adjustment for the independent school district No. 2862, Jackson 
 31.18  County Central, referendum levy authority for fiscal year 1998, 
 31.19  according to subdivision 1. 
 31.20     Sec. 47.  [LA CRESCENT-HOKAH; DEBT SERVICE EQUALIZATION.] 
 31.21     For the purpose of calculating debt service equalization, 
 31.22  donations for capital improvements received before December 31, 
 31.23  2000, to independent school district No. 300, La Crescent-Hokah, 
 31.24  must be considered as part of the percentage that is required to 
 31.25  be raised locally under Minnesota Statutes, section 124.95, 
 31.26  subdivision 3. 
 31.27     Sec. 48.  [BUS LEVY; MAHTOMEDI.] 
 31.28     In addition to other levies, independent school district 
 31.29  No. 832, Mahtomedi, a district that was in statutory operating 
 31.30  debt, according to Minnesota Statutes, section 121.914, 
 31.31  subdivisions 1 and 2, may levy an amount up to $110,000 for the 
 31.32  purchase of four type III school buses.  This amount may be 
 31.33  levied over a period of three years. 
 31.34     Sec. 49.  [ELMORE LEVY ADJUSTMENT.] 
 31.35     For property taxes payable in 1999 only, the levy for 
 31.36  independent school district No. 2860, Blue Earth area, must be 
 32.1   reduced by an amount equal to the amount levied by independent 
 32.2   school district No. 219, Elmore, according to Laws 1996, chapter 
 32.3   412, article 5, section 18, subdivision 2, for taxes payable in 
 32.4   1997.  The levy reduction must be applied against all taxable 
 32.5   property in preexisting independent school district No. 219, 
 32.6   Elmore, only. 
 32.7      Sec. 50.  [APPROPRIATION.] 
 32.8      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 32.9   LEARNING.] The sums indicated in this section are appropriated 
 32.10  from the general fund to the department of children, families, 
 32.11  and learning for the fiscal years designated. 
 32.12     Subd. 2.  [GENERAL EDUCATION AID.] For general education 
 32.13  aid: 
 32.14          $257,000     .....     1998 
 32.15       $70,246,000     .....     1999 
 32.16     This aid is in addition to any other aid appropriated for 
 32.17  this purpose. 
 32.18     Subd. 3.  [SHIFT ELIMINATED.] For additional general 
 32.19  education aid for eliminating the property tax recognition shift 
 32.20  under this article: 
 32.21       $90,100,000    .....    1999 
 32.22     Notwithstanding the provisions of Minnesota Statutes, 
 32.23  section 124.195, the commissioner of children, families, and 
 32.24  learning shall pay the fiscal year 1999 appropriation on June 
 32.25  20, 1999.  
 32.26     Subd. 4.  [DISTRICT-LEVEL COMPENSATORY REVENUE.] For 
 32.27  one-time additional district level compensatory revenue:  
 32.28       $14,700,000     .....     1999
 32.29     Of this amount: 
 32.30     (1) $4,500,000 is for a grant to independent school 
 32.31  district No. 11, Anoka-Hennepin; 
 32.32     (2) $500,000 is for a grant to independent school district 
 32.33  No. 281, Robbinsdale; 
 32.34     (3) $400,000 is for a grant to independent school district 
 32.35  No. 625, St. Paul; 
 32.36     (4) $900,000 is for a grant to independent school district 
 33.1   No. 709, Duluth; 
 33.2      (5) $800,000 is for a grant to independent school district 
 33.3   No. 279, Osseo; and 
 33.4      (6) $200,000 is for a grant to independent school district 
 33.5   No. 535, Rochester. 
 33.6      Subd. 5.  [TECHNOLOGY INTEGRATION PROJECT.] For a grant to 
 33.7   independent school district No. 62, Ortonville, to implement a 
 33.8   technology integration program: 
 33.9          $200,000     .....     1999 
 33.10     The purpose of the technology integration pilot project is 
 33.11  to demonstrate successful and effective uses of technology for 
 33.12  students, teachers, guidance counselors, administrators, and 
 33.13  parents to implement Minnesota's graduation standards and track 
 33.14  student performance in meeting the standards. 
 33.15     Sec. 51.  [REPEALER.] 
 33.16     (a) Minnesota Statutes 1997 Supplement, section 124.912, 
 33.17  subdivisions 2 and 3, are repealed effective for taxes payable 
 33.18  in 1998. 
 33.19     (b) Minnesota Statutes 1996, sections 121.904, subdivision 
 33.20  4c; and 124.2601, subdivision 4, are repealed. 
 33.21     (c) Minnesota Statutes 1997 Supplement, section 124.2601, 
 33.22  subdivision 5, is repealed effective July 1, 1999.  
 33.23     (d) Minnesota Statutes 1996, section 124.2713, subdivision 
 33.24  6b, is repealed effective for taxes payable in 1999 and revenue 
 33.25  for fiscal year 2000.  
 33.26     (e) Minnesota Statutes 1996, section 124.2727, subdivision 
 33.27  6b, is repealed effective for taxes payable in 1999.  
 33.28     (f) Minnesota Statutes 1996, section 124A.292, subdivisions 
 33.29  2 and 4, are repealed effective for revenue for fiscal year 2000.
 33.30     (g) Laws 1997, chapter 231, article 1, section 17, is 
 33.31  repealed effective the day following final enactment. 
 33.32     Sec. 52.  [EFFECTIVE DATES.] 
 33.33     (a) Sections 1, 2, 15, 16, 17, 37, 38, and 40 are effective 
 33.34  July 1, 1998. 
 33.35     (b) Sections 4, 5, 8, 9, 12, 13, 25, 41, 42, and 43 are 
 33.36  effective for revenue for fiscal year 1998. 
 34.1      (c) Section 7 is effective retroactively to July 1, 1997, 
 34.2   for revenue for fiscal year 1999. 
 34.3      (d) Sections 10, 11, 26, 27, 28, 31, 34, and 35 are 
 34.4   effective for revenue for fiscal year 1999. 
 34.5      (e) Section 14 is effective July 1, 1999. 
 34.6      (f) Section 18 is effective for revenue for fiscal year 
 34.7   2000. 
 34.8      (g) Section 21 is effective retroactive for revenue for 
 34.9   fiscal year 1997. 
 34.10     (h) Sections 24, 33, and 46 are effective the day following 
 34.11  final enactment. 
 34.12                             ARTICLE 2 
 34.13                         SPECIAL EDUCATION 
 34.14     Section 1.  Minnesota Statutes 1996, section 120.03, 
 34.15  subdivision 1, is amended to read: 
 34.16     Subdivision 1.  Every child who has a hearing impairment, 
 34.17  visual disability, speech or language impairment, physical 
 34.18  handicap, other health impairment, mental handicap, 
 34.19  emotional/behavioral disorder, specific learning 
 34.20  disability, autism, traumatic brain injury, multiple 
 34.21  disabilities, or deaf/blind disability and needs special 
 34.22  instruction and services, as determined by the standards of the 
 34.23  state board, is a child with a disability.  In addition, every 
 34.24  child under age five three, and at local district discretion 
 34.25  from age three to age seven, who needs special instruction and 
 34.26  services, as determined by the standards of the state board, 
 34.27  because the child has a substantial delay or has an identifiable 
 34.28  physical or mental condition known to hinder normal development 
 34.29  is a child with a disability. 
 34.30     Sec. 2.  [120.031] [STATEWIDE DATA MANAGEMENT SYSTEM TO 
 34.31  MAXIMIZE MEDICAL ASSISTANCE REIMBURSEMENT.] 
 34.32     Subdivision 1.  [DEFINITION.] For purposes of this section, 
 34.33  cooperative unit has the meaning given in section 123.35, 
 34.34  subdivision 19b, paragraph (d). 
 34.35     Subd. 2.  [STATEWIDE DATA MANAGEMENT SYSTEM.] The 
 34.36  commissioner of children, families, and learning, in cooperation 
 35.1   with the commissioner of human services, shall develop a 
 35.2   statewide data management system using the educational data 
 35.3   reporting system or other existing data management system for 
 35.4   school districts and cooperative units to use to maximize 
 35.5   medical assistance reimbursement for health and health-related 
 35.6   services provided under individual education plans and 
 35.7   individual family service plans.  The system must be 
 35.8   appropriately integrated with state and local existing and 
 35.9   developing human services and education data systems.  The 
 35.10  statewide data management system must enable school district and 
 35.11  cooperative unit staff to: 
 35.12     (1) establish medical assistance billing systems or improve 
 35.13  existing systems; 
 35.14     (2) understand the appropriate medical assistance billing 
 35.15  codes for services provided under individual education plans and 
 35.16  individual family service plans; 
 35.17     (3) comply with the Individuals with Disabilities Education 
 35.18  Act, Public Law Number 105-17; 
 35.19     (4) contract with billing agents; and 
 35.20     (5) carry out other activities necessary to maximize 
 35.21  medical assistance reimbursement. 
 35.22     Subd. 3.  [IMPLEMENTATION.] Consistent with Minnesota 
 35.23  Statutes 256B.0625, subdivision 26, school districts may enroll 
 35.24  as medical assistance providers or subcontractors and bill the 
 35.25  department of human services under the medical assistance fee 
 35.26  for service claims processing system for special education 
 35.27  services which are covered services under chapter 256B, which 
 35.28  are provided in the school setting for a medical assistance 
 35.29  recipient, and for whom the district has secured informed 
 35.30  consent consistent with section 13.05, subdivision 4, paragraph 
 35.31  (d), and section 256B.77, subdivision 2, paragraph (p), to bill 
 35.32  for each type of covered service.  A school district is not 
 35.33  eligible to enroll as a home care provider or a personal care 
 35.34  provider organization for purposes of billing home care services 
 35.35  under section 256B.0627 until the commissioner of human services 
 35.36  issues a bulletin instructing county public health nurses on how 
 36.1   to assess for the needs of eligible recipients during school 
 36.2   hours.  To use private duty nursing services or personal care 
 36.3   services at school, the recipient or responsible party must 
 36.4   provide written authorization in the care plan identifying the 
 36.5   chosen provider and the daily amount of services to be used at 
 36.6   school. Medical assistance services for those enrolled in a 
 36.7   prepaid health plan shall remain the responsibility of the 
 36.8   contracted health plan subject to their network, credentialing, 
 36.9   prior authorization, and determination of medical necessity 
 36.10  criteria.  The commissioner of human services shall adjust 
 36.11  payments to health plans to reflect increased costs incurred by 
 36.12  health plans due to increased payments made to school districts 
 36.13  or new payment or delivery arrangements developed by health 
 36.14  plans in cooperation with school districts. 
 36.15     Sec. 3.  Minnesota Statutes 1996, section 120.06, 
 36.16  subdivision 2a, is amended to read: 
 36.17     Subd. 2a.  [EDUCATION AND RESIDENCE OF HOMELESS.] (a) 
 36.18  Notwithstanding subdivision 1, a school district must not deny 
 36.19  free admission to a homeless person of school age solely because 
 36.20  the school district cannot determine that the person is a 
 36.21  resident of the school district.  
 36.22     (b) The school district of residence for a homeless person 
 36.23  of school age shall be the school district in which the homeless 
 36.24  shelter or other program, center, or facility assisting the 
 36.25  homeless person is located.  The educational services a school 
 36.26  district provides to a homeless person must allow the person to 
 36.27  work toward meeting the graduation standards under section 
 36.28  121.11, subdivision 7c.  
 36.29     Sec. 4.  Minnesota Statutes 1996, section 120.064, 
 36.30  subdivision 5, is amended to read: 
 36.31     Subd. 5.  [CONTRACT.] The sponsor's authorization for a 
 36.32  charter school shall be in the form of a written contract signed 
 36.33  by the sponsor and the board of directors of the charter 
 36.34  school.  The contract for a charter school shall be in writing 
 36.35  and contain at least the following: 
 36.36     (1) a description of a program that carries out one or more 
 37.1   of the purposes in subdivision 1; 
 37.2      (2) specific outcomes pupils are to achieve under 
 37.3   subdivision 10; 
 37.4      (3) admission policies and procedures; 
 37.5      (4) management and administration of the school; 
 37.6      (5) requirements and procedures for program and financial 
 37.7   audits; 
 37.8      (6) how the school will comply with subdivisions 8, 13, 15, 
 37.9   and 21; 
 37.10     (7) assumption of liability by the charter school; 
 37.11     (8) types and amounts of insurance coverage to be obtained 
 37.12  by the charter school; and 
 37.13     (9) the term of the contract, which may be up to three 
 37.14  years; and 
 37.15     (10) if the board of directors or the operators of the 
 37.16  charter school provide special instruction and services for 
 37.17  children with a disability under section 120.17, a description 
 37.18  of the financial parameters within which the charter school will 
 37.19  operate to provide the special instruction and services to 
 37.20  children with a disability. 
 37.21     Sec. 5.  Minnesota Statutes 1996, section 120.101, 
 37.22  subdivision 3, is amended to read: 
 37.23     Subd. 3.  [PARENT DEFINED; RESIDENCY DETERMINED.] (a) In 
 37.24  sections 120.101 to 120.103, "parent" means a parent, guardian, 
 37.25  or other person having legal custody of a child.  
 37.26     (b) In section 120.17, "parent" means a parent, guardian, 
 37.27  or other person having legal custody of a child under age 18.  
 37.28  For an unmarried pupil age 18 or over, "parent" means the pupil 
 37.29  unless a guardian or conservator has been appointed, in which 
 37.30  case it means the guardian or conservator. 
 37.31     (c) For purposes of section 120.17, the school district of 
 37.32  residence for an unmarried pupil age 18 or over who is a parent 
 37.33  under paragraph (b) and who is placed in a center for care and 
 37.34  treatment, shall be the school district in which the pupil's 
 37.35  biological or adoptive parent or designated guardian resides. 
 37.36     (d) For a married pupil age 18 or over, the school district 
 38.1   of residence is the school district in which the married pupil 
 38.2   resides. 
 38.3      Sec. 6.  Minnesota Statutes 1996, section 120.17, 
 38.4   subdivision 1, is amended to read: 
 38.5      Subdivision 1.  [SPECIAL INSTRUCTION FOR CHILDREN WITH A 
 38.6   DISABILITY.] (a) As defined in paragraph (b), to the extent 
 38.7   required in federal law as of July 1, 1999, every district shall 
 38.8   provide special instruction and services, either within the 
 38.9   district or in another district, for children with a disability 
 38.10  who are residents of the district and who are disabled as set 
 38.11  forth in section 120.03.  
 38.12     (b) Notwithstanding any age limits in laws to the contrary, 
 38.13  special instruction and services must be provided from birth 
 38.14  until September 1 after the child with a disability becomes 22 
 38.15  years old but shall not extend beyond secondary school or its 
 38.16  equivalent, except as provided in section 126.22, subdivision 
 38.17  2.  Local health, education, and social service agencies shall 
 38.18  refer children under age five who are known to need or suspected 
 38.19  of needing special instruction and services to the school 
 38.20  district.  Districts with less than the minimum number of 
 38.21  eligible children with a disability as determined by the state 
 38.22  board shall cooperate with other districts to maintain a full 
 38.23  range of programs for education and services for children with a 
 38.24  disability.  This subdivision does not alter the compulsory 
 38.25  attendance requirements of section 120.101. 
 38.26     Sec. 7.  Minnesota Statutes 1996, section 120.17, 
 38.27  subdivision 2, is amended to read: 
 38.28     Subd. 2.  [METHOD OF SPECIAL INSTRUCTION.] (a) As defined 
 38.29  in this subdivision, to the extent required by federal law as of 
 38.30  July 1, 1999, special instruction and services for children with 
 38.31  a disability must be based on the assessment and individual 
 38.32  education plan.  The instruction and services may be provided by 
 38.33  one or more of the following methods: 
 38.34     (1) in connection with attending regular elementary and 
 38.35  secondary school classes; 
 38.36     (2) establishment of special classes; 
 39.1      (3) at the home or bedside of the child; 
 39.2      (4) in other districts; 
 39.3      (5) instruction and services by special education 
 39.4   cooperative centers established under this section, or in 
 39.5   another member district of the cooperative center to which the 
 39.6   resident district of the child with a disability belongs; 
 39.7      (6) in a state residential school or a school department of 
 39.8   a state institution approved by the commissioner; 
 39.9      (7) in other states; 
 39.10     (8) by contracting with public, private or voluntary 
 39.11  agencies; 
 39.12     (9) for children under age five and their families, 
 39.13  programs and services established through collaborative efforts 
 39.14  with other agencies; 
 39.15     (10) for children under age five and their families, 
 39.16  programs in which children with a disability are served with 
 39.17  children without a disability; and 
 39.18     (11) any other method approved by the commissioner. 
 39.19     (b) Preference shall be given to providing special 
 39.20  instruction and services to children under age three and their 
 39.21  families in the residence of the child with the parent or 
 39.22  primary caregiver, or both, present. 
 39.23     (c) The primary responsibility for the education of a child 
 39.24  with a disability shall remain with the district of the child's 
 39.25  residence regardless of which method of providing special 
 39.26  instruction and services is used.  If a district other than a 
 39.27  child's district of residence provides special instruction and 
 39.28  services to the child, then the district providing the special 
 39.29  instruction and services shall notify the child's district of 
 39.30  residence before the child's individual education plan is 
 39.31  developed and shall provide the district of residence an 
 39.32  opportunity to participate in the plan's development.  The 
 39.33  district of residence must inform the parents of the child about 
 39.34  the methods of instruction that are available. 
 39.35     (d) Paragraphs (e) to (i) may be cited as the "Blind 
 39.36  Persons' Literacy Rights and Education Act." 
 40.1      (e) The following definitions apply to paragraphs (f) to 
 40.2   (i). 
 40.3      "Blind student" means an individual who is eligible for 
 40.4   special educational services and who: 
 40.5      (1) has a visual acuity of 20/200 or less in the better eye 
 40.6   with correcting lenses or has a limited field of vision such 
 40.7   that the widest diameter subtends an angular distance of no 
 40.8   greater than 20 degrees; or 
 40.9      (2) has a medically indicated expectation of visual 
 40.10  deterioration. 
 40.11     "Braille" means the system of reading and writing through 
 40.12  touch commonly known as standard English Braille.  
 40.13     "Individualized education plan" means a written statement 
 40.14  developed for a student eligible for special education and 
 40.15  services pursuant to this section and section 602(a)(20) of part 
 40.16  A of the Individuals with Disabilities Education Act, United 
 40.17  States Code, title 20, section 1401(a). 
 40.18     (f) In developing an individualized education plan for each 
 40.19  blind student the presumption must be that proficiency in 
 40.20  Braille reading and writing is essential for the student to 
 40.21  achieve satisfactory educational progress.  The assessment 
 40.22  required for each student must include a Braille skills 
 40.23  inventory, including a statement of strengths and deficits.  
 40.24  Braille instruction and use are not required by this paragraph 
 40.25  if, in the course of developing the student's individualized 
 40.26  education program, team members concur that the student's visual 
 40.27  impairment does not affect reading and writing performance 
 40.28  commensurate with ability.  This paragraph does not require the 
 40.29  exclusive use of Braille if other special education services are 
 40.30  appropriate to the student's educational needs.  The provision 
 40.31  of other appropriate services does not preclude Braille use or 
 40.32  instruction.  Instruction in Braille reading and writing shall 
 40.33  be available for each blind student for whom the 
 40.34  multidisciplinary team has determined that reading and writing 
 40.35  is appropriate. 
 40.36     (g) Instruction in Braille reading and writing must be 
 41.1   sufficient to enable each blind student to communicate 
 41.2   effectively and efficiently with the same level of proficiency 
 41.3   expected of the student's peers of comparable ability and grade 
 41.4   level.  
 41.5      (h) The student's individualized education plan must 
 41.6   specify: 
 41.7      (1) the results obtained from the assessment required under 
 41.8   paragraph (f); 
 41.9      (2) how Braille will be implemented through integration 
 41.10  with other classroom activities; 
 41.11     (3) the date on which Braille instruction will begin; 
 41.12     (4) the length of the period of instruction and the 
 41.13  frequency and duration of each instructional session; 
 41.14     (5) the level of competency in Braille reading and writing 
 41.15  to be achieved by the end of the period and the objective 
 41.16  assessment measures to be used; and 
 41.17     (6) if a decision has been made under paragraph (f) that 
 41.18  Braille instruction or use is not required for the student:  
 41.19     (i) a statement that the decision was reached after a 
 41.20  review of pertinent literature describing the educational 
 41.21  benefits of Braille instruction and use; and 
 41.22     (ii) a specification of the evidence used to determine that 
 41.23  the student's ability to read and write effectively without 
 41.24  Braille is not impaired. 
 41.25     (i) Instruction in Braille reading and writing is a service 
 41.26  for the purpose of special education and services under this 
 41.27  section. 
 41.28     (j) Paragraphs (e) to (i) shall not be construed to 
 41.29  supersede any rights of a parent or guardian of a child with a 
 41.30  disability under federal or state law. 
 41.31     Sec. 8.  Minnesota Statutes 1996, section 120.17, 
 41.32  subdivision 3, is amended to read: 
 41.33     Subd. 3.  [RULES OF THE STATE BOARD.] (a) As defined in 
 41.34  this paragraph, but not to exceed the extent required by federal 
 41.35  law as of July 1, 1999, the state board shall promulgate rules 
 41.36  relative to qualifications of essential personnel, courses of 
 42.1   study, methods of instruction, pupil eligibility, size of 
 42.2   classes, rooms, equipment, supervision, parent consultation, and 
 42.3   any other rules it deems necessary rules for instruction of 
 42.4   children with a disability.  These rules shall provide standards 
 42.5   and procedures appropriate for the implementation of and within 
 42.6   the limitations of subdivisions 3a and 3b.  These rules shall 
 42.7   also provide standards for the discipline, control, management 
 42.8   and protection of children with a disability.  The state board 
 42.9   shall not adopt rules for pupils served in level 1, 2, or 3, as 
 42.10  defined in Minnesota Rules, part 3525.2340, primarily in the 
 42.11  regular classroom establishing either case loads or the maximum 
 42.12  number of pupils that may be assigned to special education 
 42.13  teachers.  The state board, in consultation with the departments 
 42.14  of health and human services, shall adopt permanent rules for 
 42.15  instruction and services for children under age five and their 
 42.16  families.  These rules are binding on state and local education, 
 42.17  health, and human services agencies.  The state board shall 
 42.18  adopt rules to determine eligibility for special education 
 42.19  services.  The rules shall include procedures and standards by 
 42.20  which to grant variances for experimental eligibility criteria.  
 42.21  The state board shall, according to section 14.05, subdivision 
 42.22  4, notify a district applying for a variance from the rules 
 42.23  within 45 calendar days of receiving the request whether the 
 42.24  request for the variance has been granted or denied.  If a 
 42.25  request is denied, the board shall specify the program standards 
 42.26  used to evaluate the request and the reasons for denying the 
 42.27  request.  
 42.28     (b) As provided in this paragraph, but not to exceed the 
 42.29  extent required by federal law as of July 1, 1999, the state's 
 42.30  regulatory scheme should support schools by assuring that all 
 42.31  state special education rules adopted by the state board of 
 42.32  education result in one or more of the following outcomes: 
 42.33     (1) increased time available to teachers and, where 
 42.34  appropriate, to support staff including school nurses for 
 42.35  educating students through direct and indirect instruction; 
 42.36     (2) consistent and uniform access to effective education 
 43.1   programs for students with disabilities throughout the state; 
 43.2      (3) reduced inequalities, and conflict, appropriate due 
 43.3   process hearing procedures and reduced court actions related to 
 43.4   the delivery of special education instruction and services for 
 43.5   students with disabilities; 
 43.6      (4) clear expectations for service providers and for 
 43.7   students with disabilities; 
 43.8      (5) increased accountability for all individuals and 
 43.9   agencies that provide instruction and other services to students 
 43.10  with disabilities; 
 43.11     (6) greater focus for the state and local resources 
 43.12  dedicated to educating students with disabilities; and 
 43.13     (7) clearer standards for evaluating the effectiveness of 
 43.14  education and support services for students with disabilities. 
 43.15     Sec. 9.  Minnesota Statutes 1996, section 120.17, 
 43.16  subdivision 3a, is amended to read: 
 43.17     Subd. 3a.  [SCHOOL DISTRICT OBLIGATIONS.] (a) As defined in 
 43.18  this subdivision, to the extent required by federal law as of 
 43.19  July 1, 1999, every district shall ensure that: 
 43.20     (1) all students with disabilities are provided the special 
 43.21  instruction and services which are appropriate to their needs.  
 43.22  Where the individual education plan team has determined 
 43.23  appropriate goals and objectives based on the student's needs, 
 43.24  including the extent to which the student can be included in the 
 43.25  least restrictive environment, and where there are essentially 
 43.26  equivalent and effective instruction, related services, or 
 43.27  assistive technology devices available to meet the student's 
 43.28  needs, cost to the school district may be among the factors 
 43.29  considered by the team in choosing how to provide the 
 43.30  appropriate services, instruction, or devices that are to be 
 43.31  made part of the student's individual education plan.  The 
 43.32  student's needs and the special education instruction and 
 43.33  services to be provided shall be agreed upon through the 
 43.34  development of an individual education plan.  The plan shall 
 43.35  address the student's need to develop skills to live and work as 
 43.36  independently as possible within the community.  By grade 9 or 
 44.1   age 14, the plan shall address the student's needs for 
 44.2   transition from secondary services to post-secondary education 
 44.3   and training, employment, community participation, recreation, 
 44.4   and leisure and home living.  In developing the plan, districts 
 44.5   must inform parents of the full range of transitional goals and 
 44.6   related services that should be considered.  The plan must 
 44.7   include a statement of the needed transition services, including 
 44.8   a statement of the interagency responsibilities or linkages or 
 44.9   both before secondary services are concluded; 
 44.10     (2) children with a disability under age five and their 
 44.11  families are provided special instruction and services 
 44.12  appropriate to the child's level of functioning and needs; 
 44.13     (3) children with a disability and their parents or 
 44.14  guardians are guaranteed procedural safeguards and the right to 
 44.15  participate in decisions involving identification, assessment 
 44.16  including assistive technology assessment, and educational 
 44.17  placement of children with a disability; 
 44.18     (4) eligibility and needs of children with a disability are 
 44.19  determined by an initial assessment or reassessment, which may 
 44.20  be completed using existing data under United States Code, title 
 44.21  20, section 33, et seq.; 
 44.22     (5) to the maximum extent appropriate, children with a 
 44.23  disability, including those in public or private institutions or 
 44.24  other care facilities, are educated with children who are not 
 44.25  disabled, and that special classes, separate schooling, or other 
 44.26  removal of children with a disability from the regular 
 44.27  educational environment occurs only when and to the extent that 
 44.28  the nature or severity of the disability is such that education 
 44.29  in regular classes with the use of supplementary services cannot 
 44.30  be achieved satisfactorily; 
 44.31     (5) (6) in accordance with recognized professional 
 44.32  standards, testing and evaluation materials, and procedures 
 44.33  utilized for the purposes of classification and placement of 
 44.34  children with a disability are selected and administered so as 
 44.35  not to be racially or culturally discriminatory; and 
 44.36     (6) (7) the rights of the child are protected when the 
 45.1   parents or guardians are not known or not available, or the 
 45.2   child is a ward of the state. 
 45.3      (b) For paraprofessionals employed to work in programs for 
 45.4   students with disabilities, the school board in each district 
 45.5   shall ensure that: 
 45.6      (1) before or immediately upon employment, each 
 45.7   paraprofessional develops sufficient knowledge and skills in 
 45.8   emergency procedures, building orientation, roles and 
 45.9   responsibilities, confidentiality, vulnerability, and 
 45.10  reportability, among other things, to begin meeting the needs of 
 45.11  the students with whom the paraprofessional works; 
 45.12     (2) annual training opportunities are available to enable 
 45.13  the paraprofessional to continue to further develop the 
 45.14  knowledge and skills that are specific to the students with whom 
 45.15  the paraprofessional works, including understanding 
 45.16  disabilities, following lesson plans, and implementing follow-up 
 45.17  instructional procedures and activities; and 
 45.18     (3) a districtwide process obligates each paraprofessional 
 45.19  to work under the ongoing direction of a licensed teacher and, 
 45.20  where appropriate and possible, the supervision of a school 
 45.21  nurse. 
 45.22     Sec. 10.  Minnesota Statutes 1996, section 120.17, 
 45.23  subdivision 3b, is amended to read: 
 45.24     Subd. 3b.  [PROCEDURES FOR DECISIONS.] As defined in this 
 45.25  paragraph, but not to exceed the extent required by federal law 
 45.26  as of July 1, 1999, every district shall utilize at least the 
 45.27  following procedures for decisions involving identification, 
 45.28  assessment, and educational placement of children with a 
 45.29  disability: 
 45.30     (a) Parents and guardians shall receive prior written 
 45.31  notice of:  
 45.32     (1) any proposed formal educational assessment or proposed 
 45.33  denial of a formal educational assessment of their child; 
 45.34     (2) a proposed placement of their child in, transfer from 
 45.35  or to, or denial of placement in a special education program; or 
 45.36     (3) the proposed provision, addition, denial or removal of 
 46.1   special education services for their child;. 
 46.2      (b) The district shall not proceed with the initial formal 
 46.3   assessment of a child, the initial placement of a child in a 
 46.4   special education program, or the initial provision of special 
 46.5   education services for a child without the prior written consent 
 46.6   of the child's parent or guardian.  The refusal of a parent or 
 46.7   guardian to consent may be overridden by the decision in a 
 46.8   hearing held pursuant to clause paragraph (e) at the district's 
 46.9   initiative;. 
 46.10     (c) Parents and guardians shall have an opportunity to meet 
 46.11  with appropriate district staff in at least one conciliation 
 46.12  conference, mediation, or other method of alternative dispute 
 46.13  resolution that the parties agree to, if they object to any 
 46.14  proposal of which they are notified pursuant to clause under 
 46.15  paragraph (a).  The conciliation process or other form of state 
 46.16  intends to encourage parties to resolve disputes through 
 46.17  mediation or other form of alternative dispute resolution.  A 
 46.18  school district and a parent or guardian must participate in 
 46.19  mediation using mediation services acceptable to both parties, 
 46.20  unless a party objects to the mediation.  Mediation shall remain 
 46.21  available to the parties until a party objects to the mediation, 
 46.22  or the mediator determines that further efforts to mediate a 
 46.23  dispute are not warranted.  All mediation is subject to the 
 46.24  confidentiality requirements under rule 114.08 of the general 
 46.25  rules of practice for the district courts.  Alternative dispute 
 46.26  resolution shall not be used to deny or delay a parent or 
 46.27  guardian's right to a due process hearing.  If the parent or 
 46.28  guardian refuses efforts by the district to conciliate the 
 46.29  dispute with the school district, the requirement of an 
 46.30  opportunity for conciliation or other alternative dispute 
 46.31  resolution shall be deemed to be satisfied.  Notwithstanding 
 46.32  other law, in any proceeding following a conciliation 
 46.33  conference, the school district must not offer a conciliation 
 46.34  conference memorandum into evidence, except for any portions 
 46.35  that describe the district's final proposed offer of service.  
 46.36  Otherwise, with respect to forms of dispute resolution, 
 47.1   mediation, or conciliation, Minnesota Rule of Evidence 408 
 47.2   applies.  The department of children, families, and learning may 
 47.3   reimburse the districts or directly pay the costs of lay 
 47.4   advocates, not to exceed $150 per dispute, used in conjunction 
 47.5   with alternative dispute resolution. 
 47.6      (d) The commissioner shall establish a mediation process to 
 47.7   assist parents, school districts, or other parties to resolve 
 47.8   disputes arising out of the identification, assessment, or 
 47.9   educational placement of children with a disability.  The 
 47.10  mediation process must be offered as an informal alternative to 
 47.11  the due process hearing provided under clause paragraph (e), but 
 47.12  must not be used to deny or postpone the opportunity of a parent 
 47.13  or guardian to obtain a due process hearing. 
 47.14     (e) Parents, guardians, and the district shall have an 
 47.15  opportunity to obtain an impartial due process hearing initiated 
 47.16  and conducted by and in the school district responsible for 
 47.17  assuring that an appropriate program is provided in accordance 
 47.18  with state board rules, if the parent or guardian continues to 
 47.19  object to:  
 47.20     (1) a proposed formal educational assessment or proposed 
 47.21  denial of a formal educational assessment of their child; 
 47.22     (2) the proposed placement of their child in, or transfer 
 47.23  of their child to a special education program; 
 47.24     (3) the proposed denial of placement of their child in a 
 47.25  special education program or the transfer of their child from a 
 47.26  special education program; 
 47.27     (4) the proposed provision or addition of special education 
 47.28  services for their child; or 
 47.29     (5) the proposed denial or removal of special education 
 47.30  services for their child.  
 47.31     A hearing officer may limit an impartial due process 
 47.32  hearing to an amount of time sufficient for each party to 
 47.33  present its case.  The party requesting the hearing shall plead 
 47.34  with specificity as to what issues are in dispute and all issues 
 47.35  not pleaded with specificity are deemed waived.  Parties must 
 47.36  limit evidence to the issues specifically pleaded.  A hearing 
 48.1   officer, at the officer's discretion, may exclude cumulative 
 48.2   evidence or may encourage parties to present only essential 
 48.3   witnesses. 
 48.4      Within five business days after the request for a hearing, 
 48.5   or as directed by the hearing officer, the objecting party shall 
 48.6   provide the other party with a brief written statement of 
 48.7   particulars of the objection, the reasons for the objection, and 
 48.8   the specific remedies sought.  The other party shall provide the 
 48.9   objecting party with a written response to the statement of 
 48.10  objections within five business days of receipt of the statement.
 48.11     The hearing shall take place before an impartial hearing 
 48.12  officer mutually agreed to by the school board and the parent or 
 48.13  guardian.  Within four business days of the receipt of the 
 48.14  request for the hearing, if the parties have not agreed on the 
 48.15  hearing officer, the school board shall request the commissioner 
 48.16  to appoint a hearing officer from a list maintained for that 
 48.17  purpose.  A retired judge, retired court referee, or retired 
 48.18  federal magistrate judge who is otherwise qualified under this 
 48.19  section and wishes to be a hearing officer may be put on the 
 48.20  list.  The school board shall include with the request the name 
 48.21  of the person requesting the hearing, the name of the student, 
 48.22  the attorneys involved, if any, and the date the hearing request 
 48.23  was received.  The hearing officer shall not be a school board 
 48.24  member or employee of the school district where the child 
 48.25  resides or of the child's school district of residence, an 
 48.26  employee of any other public agency involved in the education or 
 48.27  care of the child, or any person with a personal or professional 
 48.28  interest which would conflict with the person's objectivity at 
 48.29  the hearing.  A person who otherwise qualifies as a hearing 
 48.30  officer is not an employee of the district solely because the 
 48.31  person is paid by the district to serve as a hearing 
 48.32  officer.  Any party to a hearing, except an expedited hearing 
 48.33  under federal law, may make and serve upon the opposing party 
 48.34  and the commissioner a notice to remove a hearing officer 
 48.35  appointed by the commissioner.  The notice shall be served and 
 48.36  filed within two business days after the party receives notice 
 49.1   of the appointment of the hearing officer by the commissioner. 
 49.2      No such notice may be filed by a party against a hearing 
 49.3   officer who has presided at a motion or any other proceeding of 
 49.4   which the party had notice.  A hearing officer who has presided 
 49.5   at a motion or other proceeding may not be removed except upon 
 49.6   an affirmative showing of prejudice on the part of the hearing 
 49.7   officer.  
 49.8      After the party has once disqualified a hearing officer as 
 49.9   a matter of right, that party may disqualify the substitute 
 49.10  hearing officer only by making an affirmative showing of 
 49.11  prejudice or bias to the commissioner, or to the chief 
 49.12  administrative law judge if the hearing officer is an 
 49.13  administrative law judge. 
 49.14     Upon the filing of a notice to remove or if a party makes 
 49.15  an affirmative showing of prejudice against a substitute hearing 
 49.16  officer, the commissioner shall assign any other hearing officer 
 49.17  to hear the matter. 
 49.18     If the hearing officer requests an independent educational 
 49.19  assessment of a child, the cost of the assessment shall be at 
 49.20  district expense.  The proceedings shall be recorded and 
 49.21  preserved, at the expense of the school district, pending 
 49.22  ultimate disposition of the action. 
 49.23     (f) The decision of the hearing officer pursuant to clause 
 49.24  paragraph (e) shall be rendered not more than 45 calendar days 
 49.25  from the date of the receipt of the request for the hearing, 
 49.26  except that hearing officers are encouraged to accelerate the 
 49.27  timeline to 30 days for children birth through two whose needs 
 49.28  change rapidly and require quick resolution of complaints.  A 
 49.29  hearing officer may not grant specific extensions of time beyond 
 49.30  the 45-day period unless requested by either party for good 
 49.31  cause shown on the record.  Good cause includes the time 
 49.32  required for mediation under paragraph (c).  The decision of the 
 49.33  hearing officer shall be binding on all parties unless appealed 
 49.34  to the commissioner by the parent; guardian; school board of the 
 49.35  district where the child resides pursuant to clause 
 49.36  (g) paragraph (h); and also in the case of children birth 
 50.1   through two, by the county board. 
 50.2      The local decision shall: 
 50.3      (1) be in writing; 
 50.4      (2) state the controlling facts upon which the decision is 
 50.5   made in sufficient detail to apprise the parties and the hearing 
 50.6   review officer of the basis and reason for the decision; and 
 50.7      (3) be based on the standards set forth in subdivision 3a 
 50.8   and the rules of the state board. 
 50.9      (g) The hearing officer may require the resident school 
 50.10  district to provide compensatory educational services to the 
 50.11  child if the hearing officer finds that the school district has 
 50.12  not offered or made available to the child a free appropriate 
 50.13  public education in the child's educational program and that the 
 50.14  child has suffered a loss of educational benefit.  Such services 
 50.15  shall take the form of direct and indirect special education and 
 50.16  related services designed to address any loss of educational 
 50.17  benefit that may have occurred.  The hearing officer's finding 
 50.18  shall be based on a present determination of whether the child 
 50.19  has suffered a loss of educational benefit. 
 50.20     (g) (h) Any local decision issued pursuant to clauses 
 50.21  paragraphs (e) and (f) may be appealed to the commissioner 
 50.22  within 30 calendar days of receipt of that written decision, by 
 50.23  the parent, guardian, or the school board of the district 
 50.24  responsible for assuring that an appropriate program is provided 
 50.25  in accordance with state board rules.  The appealing party shall 
 50.26  note the specific parts of the hearing decision being appealed. 
 50.27     If the decision is appealed, a written transcript of the 
 50.28  hearing shall be made by the school district and provided by the 
 50.29  district to the parties involved and the hearing review officer 
 50.30  within five calendar days of the filing of the appeal.  The 
 50.31  hearing review officer shall conduct an appellate review and 
 50.32  issue a final independent decision based on an impartial review 
 50.33  of the local decision and the entire record within 30 calendar 
 50.34  days after the filing of the appeal.  However, the hearing 
 50.35  review officer shall seek additional evidence if necessary and 
 50.36  may afford the parties an opportunity for written or oral 
 51.1   argument; provided any hearing held to seek additional evidence 
 51.2   shall be an impartial due process hearing but shall be deemed 
 51.3   not to be a contested case hearing for purposes of chapter 14.  
 51.4   The hearing review officer may grant specific extensions of time 
 51.5   beyond the 30-day period at the request of any party for good 
 51.6   cause shown on the record. 
 51.7      The final decision shall: 
 51.8      (1) be in writing; 
 51.9      (2) include findings and conclusions; and 
 51.10     (3) be based upon the standards set forth in subdivision 3a 
 51.11  and in the rules of the state board. 
 51.12     (h) (i) The decision of the hearing review officer shall be 
 51.13  final unless appealed by the parent or guardian or school board 
 51.14  to the Minnesota court of appeals or federal district court as 
 51.15  provided by federal law.  State judicial review shall be in 
 51.16  accordance with chapter 14.  
 51.17     (i) (j) The commissioner of children, families, and 
 51.18  learning shall select an individual who has the qualifications 
 51.19  enumerated in this paragraph to serve as the hearing review 
 51.20  officer: 
 51.21     (1) the individual must be knowledgeable and impartial; 
 51.22     (2) the individual must not have a personal interest in or 
 51.23  specific involvement with the student who is a party to the 
 51.24  hearing; 
 51.25     (3) the individual must not have been employed as an 
 51.26  administrator by the district that is a party to the hearing; 
 51.27     (4) the individual must not have been involved in the 
 51.28  selection of the administrators of the district that is a party 
 51.29  to the hearing; 
 51.30     (5) the individual must not have a personal, economic, or 
 51.31  professional interest in the outcome of the hearing other than 
 51.32  the proper administration of the federal and state laws, rules, 
 51.33  and policies; 
 51.34     (6) the individual must not have substantial involvement in 
 51.35  the development of a state or local policy or procedures that 
 51.36  are challenged in the appeal; 
 52.1      (7) the individual is not a current employee or board 
 52.2   member of a Minnesota public school district, education 
 52.3   district, intermediate unit or regional education agency, the 
 52.4   department of children, families, and learning, the state board 
 52.5   of education; and 
 52.6      (8) the individual is not a current employee or board 
 52.7   member of a disability advocacy organization or group.  
 52.8      (j) (k) In all appeals, the parent or guardian of the pupil 
 52.9   with a disability or the district that is a party to the hearing 
 52.10  may challenge the impartiality or competence of the proposed 
 52.11  hearing review officer by applying to the hearing review officer.
 52.12     (k) (l) Pending the completion of proceedings pursuant to 
 52.13  this subdivision, unless the district and the parent or guardian 
 52.14  of the child agree otherwise, the child shall remain in the 
 52.15  child's current educational placement and shall not be denied 
 52.16  initial admission to school. 
 52.17     (l) (m) The child's school district of residence, a 
 52.18  resident district, and providing district shall receive notice 
 52.19  of and may be a party to any hearings or appeals under this 
 52.20  subdivision. 
 52.21     (m) (n) A school district is not liable for harmless 
 52.22  technical violations of this subdivision or rules implementing 
 52.23  this subdivision if the school district can demonstrate on a 
 52.24  case-by-case basis that the violations did not harm the 
 52.25  student's educational progress or the parent or guardian's right 
 52.26  to notice, participation, or due process. 
 52.27     (n) (o) Within ten calendar days after appointment, the 
 52.28  hearing officer shall schedule and hold a prehearing 
 52.29  conference.  At that conference, or later, the hearing officer 
 52.30  may take any appropriate action that a court might take under 
 52.31  Rule 16 of Minnesota Rules of Civil Procedure including, but not 
 52.32  limited to, scheduling, jurisdiction, and listing witnesses 
 52.33  including expert witnesses. 
 52.34     (o) (p) A hearing officer or hearing review officer 
 52.35  appointed under this subdivision shall be deemed to be an 
 52.36  employee of the state under section 3.732 for the purposes of 
 53.1   section 3.736 only. 
 53.2      (p) (q) In order to be eligible for selection, hearing 
 53.3   officers and hearing review officers shall participate in 
 53.4   training and follow procedures as designated by the commissioner.
 53.5      (q) (r) The hearing officer may admit all evidence which 
 53.6   possesses probative value, including hearsay, if it is the type 
 53.7   of evidence on which reasonable, prudent persons are accustomed 
 53.8   to rely in the conduct of their serious affairs.  The hearing 
 53.9   officer shall give effect to the rules of privilege recognized 
 53.10  by law.  Evidence which is incompetent, irrelevant, immaterial, 
 53.11  or unduly repetitious shall be excluded. 
 53.12     Sec. 11.  Minnesota Statutes 1996, section 120.17, 
 53.13  subdivision 6, is amended to read: 
 53.14     Subd. 6.  [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 
 53.15  The responsibility for special instruction and services for a 
 53.16  child with a disability temporarily placed in another district 
 53.17  for care and treatment shall be determined in the following 
 53.18  manner: 
 53.19     (a) The school district of residence of a child shall be 
 53.20  the district in which the child's parent resides, if living, or 
 53.21  the child's guardian, or the district designated by the 
 53.22  commissioner of children, families, and learning if neither 
 53.23  parent nor guardian is living within the state. 
 53.24     (b) When a child is temporarily placed for care and 
 53.25  treatment in a day program located in another district and the 
 53.26  child continues to live within the district of residence during 
 53.27  the care and treatment, the district of residence is responsible 
 53.28  for providing transportation and an appropriate educational 
 53.29  program for the child.  The district may provide the educational 
 53.30  program at a school within the district of residence, at the 
 53.31  child's residence, or in the district in which the day treatment 
 53.32  center is located by paying tuition to that district. 
 53.33     (c) When a child is temporarily placed in a residential 
 53.34  program for care and treatment, the nonresident district in 
 53.35  which the child is placed is responsible for providing an 
 53.36  appropriate educational program for the child and necessary 
 54.1   transportation while the child is attending the educational 
 54.2   program; and shall bill the district of the child's residence 
 54.3   for the actual cost of providing the program, as outlined in 
 54.4   subdivision 4, except that the board, lodging, and treatment 
 54.5   costs incurred in behalf of a child with a disability placed 
 54.6   outside of the school district of residence by the commissioner 
 54.7   of human services or the commissioner of corrections or their 
 54.8   agents, for reasons other than for making provision for the 
 54.9   child's special educational needs shall not become the 
 54.10  responsibility of either the district providing the instruction 
 54.11  or the district of the child's residence.  For the purposes of 
 54.12  this section, the state correctional facilities operated on a 
 54.13  fee-for-service basis are considered to be residential programs 
 54.14  for care and treatment. 
 54.15     (d) The district of residence shall pay tuition and other 
 54.16  program costs, not including transportation costs, to the 
 54.17  district providing the instruction and services.  The district 
 54.18  of residence may claim general education aid for the child as 
 54.19  provided by law.  Transportation costs shall be paid by the 
 54.20  district responsible for providing the transportation and the 
 54.21  state shall pay transportation aid to that district. 
 54.22     Sec. 12.  Minnesota Statutes 1996, section 120.17, 
 54.23  subdivision 7, is amended to read: 
 54.24     Subd. 7.  [PLACEMENT IN STATE INSTITUTION; RESPONSIBILITY.] 
 54.25  Responsibility for special instruction and services for a child 
 54.26  with a disability placed in a state institution on a temporary 
 54.27  basis shall be determined in the following manner: 
 54.28     (a) The legal residence of such child shall be the school 
 54.29  district in which the child's parent resides, if living, or the 
 54.30  child's guardian.  
 54.31     (b) When the educational needs of such child can be met 
 54.32  through the institutional program, the costs for such 
 54.33  instruction shall be paid by the department to which the 
 54.34  institution is assigned with exception of children placed in 
 54.35  fee-for-service facilities operated by the commissioner of 
 54.36  corrections whose cost for such instruction shall be paid as 
 55.1   outlined in subdivision 6.  
 55.2      (c) When it is determined that such child can benefit from 
 55.3   public school enrollment, provision for such instruction shall 
 55.4   be made in the following manner: 
 55.5      (1) determination of eligibility for special instruction 
 55.6   and services shall be made by the commissioner of children, 
 55.7   families, and learning and the commissioner of the department 
 55.8   responsible for the institution; 
 55.9      (2) the school district where the institution is located 
 55.10  shall be responsible for providing transportation and an 
 55.11  appropriate educational program for the child and shall make a 
 55.12  tuition charge to the child's district of residence for the 
 55.13  actual cost of providing the program; 
 55.14     (3) the district of the child's residence shall pay the 
 55.15  tuition and other program costs excluding transportation costs 
 55.16  and may claim general education aid for the child.  
 55.17  Transportation costs shall be paid by the district where the 
 55.18  institution is located and the state shall pay transportation 
 55.19  aid to that district. 
 55.20     Sec. 13.  Minnesota Statutes 1996, section 120.17, 
 55.21  subdivision 9, is amended to read: 
 55.22     Subd. 9.  [SPECIAL INSTRUCTION.] No resident of a district 
 55.23  who is eligible for special instruction and services pursuant to 
 55.24  under this section shall be denied provision of this instruction 
 55.25  and service on a shared time basis consistent with section 
 55.26  124A.034, subdivision 2, because of attendance at attending a 
 55.27  nonpublic school defined in section 123.932, subdivision 3.  If 
 55.28  a resident pupil with a disability attends a nonpublic school 
 55.29  located within the district of residence, the district shall 
 55.30  provide necessary transportation for that pupil within the 
 55.31  district between the nonpublic school and the educational 
 55.32  facility where special instruction and services are provided on 
 55.33  a shared time basis.  If a resident pupil with a disability 
 55.34  attends a nonpublic school located in another district and if no 
 55.35  agreement exists pursuant to under section 124A.034, subdivision 
 55.36  1 or 1a, for the provision of providing special instruction and 
 56.1   services on a shared time basis to that pupil by the district of 
 56.2   attendance and where the special instruction and services are 
 56.3   provided within the district of residence, the district of 
 56.4   residence shall provide necessary transportation for that pupil 
 56.5   between the boundary of the district of residence and the 
 56.6   educational facility.  The district of residence may provide 
 56.7   necessary transportation for that pupil between its boundary and 
 56.8   the nonpublic school attended, but the nonpublic school shall 
 56.9   pay the cost of transportation provided outside the district 
 56.10  boundary. 
 56.11     Sec. 14.  Minnesota Statutes 1996, section 120.17, 
 56.12  subdivision 15, is amended to read: 
 56.13     Subd. 15.  [THIRD PARTY PAYMENT.] (a) Nothing in this 
 56.14  section relieves an insurer or similar third party from an 
 56.15  otherwise valid obligation to pay, or changes the validity of an 
 56.16  obligation to pay, for services rendered to a child with a 
 56.17  disability, and the child's family.  A school district may pay 
 56.18  or reimburse copayments, coinsurance, deductibles, and other 
 56.19  enrollee cost-sharing amounts, on behalf of the student or 
 56.20  family, in connection with health and related services provided 
 56.21  under an individual educational plan.  
 56.22     (b) Beginning July 1, 1999, districts shall seek 
 56.23  reimbursement from insurers and similar third parties for the 
 56.24  cost of services provided by the district whenever the services 
 56.25  provided by the district are otherwise covered by the child's 
 56.26  health coverage.  Districts shall request, but may not require, 
 56.27  the child's family to provide information about the child's 
 56.28  health coverage when a child with a disability begins to receive 
 56.29  services from the district of a type that may be reimbursable, 
 56.30  and shall request, but may not require, updated information 
 56.31  after that as needed.  Districts shall request, but may not 
 56.32  require, the child's parent or legal representative to sign a 
 56.33  consent form, permitting the school district to apply for and 
 56.34  receive reimbursement directly from the insurer or other similar 
 56.35  third party, to the extent permitted by the insurer or other 
 56.36  third party and subject to their networking credentialing, prior 
 57.1   authorization, and determination of medical necessity criteria. 
 57.2      (c) Of the reimbursements received, districts may: 
 57.3      (1) retain an amount sufficient to compensate the district 
 57.4   for its administrative costs of obtaining reimbursements; 
 57.5      (2) regularly obtain from education- and health-related 
 57.6   entities training and other appropriate technical assistance 
 57.7   designed to improve the district's ability to determine which 
 57.8   services are reimbursable and to seek timely reimbursement in a 
 57.9   cost-effective manner; or 
 57.10     (3) reallocate reimbursements for the benefit of students 
 57.11  with special needs in the district. 
 57.12     (d) To the extent required by federal law, a school 
 57.13  district may not require parents of children with disabilities, 
 57.14  if they would incur a financial cost, to use private or public 
 57.15  health coverage to pay for the services that must be provided 
 57.16  under an individual education plan. 
 57.17     (e) When obtaining informed consent, consistent with 
 57.18  sections 13.05, subdivision 4, paragraph (d); and 256B.77, 
 57.19  subdivision 2, paragraph (p), to bill health plans for covered 
 57.20  services, the school district must notify the legal 
 57.21  representative (1) that the cost of the person's private health 
 57.22  insurance premium may increase due to providing the covered 
 57.23  service in the school setting, (2) that the school district may 
 57.24  pay certain enrollee health plan costs, including but not 
 57.25  limited to, copayments, coinsurance, deductibles, premium 
 57.26  increases or other enrollee cost-sharing amounts for health and 
 57.27  related services required by an individual service plan, or 
 57.28  individual family service plan, and (3) that the school's 
 57.29  billing for each type of covered service may affect service 
 57.30  limits and prior authorization thresholds.  The informed consent 
 57.31  may be revoked in writing at any time by the person authorizing 
 57.32  the billing of the health plan. 
 57.33     (f) To the extent required by federal law, no school 
 57.34  district may deny, withhold, or delay any service that must be 
 57.35  provided under an individual education plan because a family has 
 57.36  refused to provide informed consent to bill a health plan for 
 58.1   services or a health plan company has refused to pay any, all, 
 58.2   or a portion of the cost of services billed. 
 58.3      (g) A school district may disclose information contained in 
 58.4   a student's individual education plan, consistent with section 
 58.5   13.32, subdivision 3(a), including records of the student's 
 58.6   diagnosis and treatment, to a health plan company only with the 
 58.7   signed and dated consent of the student's parent, or other 
 58.8   legally authorized individual.  The school district shall 
 58.9   disclose only that information necessary for the health plan 
 58.10  company to decide matters of coverage and payment.  A health 
 58.11  plan company may use the information only for making decisions 
 58.12  regarding coverage and payment, and for any other use permitted 
 58.13  by law. 
 58.14     Sec. 15.  Minnesota Statutes 1996, section 120.1701, 
 58.15  subdivision 2, is amended to read: 
 58.16     Subd. 2.  [DEFINITIONS.] For the purposes of this section 
 58.17  the following terms have the meaning given them.  
 58.18     (a) "Coordinate" means to provide ready access to a 
 58.19  community's services and resources to meet child and family 
 58.20  needs.  
 58.21     (b) "Core early intervention services" means services that 
 58.22  are available at no cost to children and families.  These 
 58.23  services include: 
 58.24     (1) identification and referral; 
 58.25     (2) screening; 
 58.26     (3) evaluation; 
 58.27     (4) assessment; 
 58.28     (5) service coordination; 
 58.29     (6) special education and related services provided under 
 58.30  section 120.17, subdivision 3a, and United States Code, title 
 58.31  20, section 1401; and 
 58.32     (7) protection of parent and child rights by means of 
 58.33  procedural safeguards. 
 58.34     (c) "County board" means a county board established under 
 58.35  chapter 375. 
 58.36     (d) "Early intervention record" means any personally 
 59.1   identifiable information about a child or the child's family 
 59.2   that is generated by the early intervention system, and that 
 59.3   pertains to evaluation and assessment, development of an 
 59.4   individualized family service plan, and the delivery of early 
 59.5   intervention services. 
 59.6      (e) "Early intervention services" means services provided 
 59.7   in conformity with an individualized family service plan that 
 59.8   are designed to meet the special developmental needs of a child 
 59.9   eligible under Code of Federal Regulations, title 34, part 303, 
 59.10  and the needs of the child's family related to enhancing the 
 59.11  child's development and that are selected in collaboration with 
 59.12  the parent.  These services include core early intervention 
 59.13  services and additional early intervention services listed in 
 59.14  subdivision 4 and services defined in Code of Federal 
 59.15  Regulations, title 34, section 303, et seq. 
 59.16     (f) "Early intervention system" means the total effort in 
 59.17  the state to meet the needs of eligible children and their 
 59.18  families, including, but not limited to: 
 59.19     (1) any public agency in the state that receives funds 
 59.20  under the Individuals with Disabilities Education Act, United 
 59.21  States Code, title 20, sections 1471 to 1485 (Part H, Public Law 
 59.22  Number 102-119); 
 59.23     (2) other state and local agencies administering programs 
 59.24  involved in the provision of early intervention services, 
 59.25  including, but not limited to: 
 59.26     (i) the Maternal and Child Health program under title V of 
 59.27  the Social Security Act, United States Code, title 42, sections 
 59.28  701 to 709; 
 59.29     (ii) the Individuals with Disabilities Education Act, 
 59.30  United States Code, title 20, sections 1411 to 1420 (Part B); 
 59.31     (iii) medical assistance under the Social Security Act, 
 59.32  United States Code, title 42, section 1396 et seq.; 
 59.33     (iv) the Developmental Disabilities Assistance and Bill of 
 59.34  Rights Act, United States Code, title 42, sections 6021 to 6030 
 59.35  (Part B); and 
 59.36     (v) the Head Start Act, United States Code, title 42, 
 60.1   sections 9831 to 9852; and 
 60.2      (3) services provided by private groups or third-party 
 60.3   payers in conformity with an individualized family service plan. 
 60.4      (g) "Eligibility for Part H" means eligibility for early 
 60.5   childhood special education under section 120.03 and Minnesota 
 60.6   Rules, part 3525.2335, subpart 1, items A and B. 
 60.7      (h) "Facilitate payment" means helping families access 
 60.8   necessary public or private assistance that provides payment for 
 60.9   services required to meet needs identified in a service plan, 
 60.10  individual education plan (IEP), individual service plan (ISP), 
 60.11  or individualized family service plan (IFSP), according to time 
 60.12  frames required by the plan.  This may also include activities 
 60.13  to collect fees for services provided on a sliding fee basis, 
 60.14  where permitted by state law. 
 60.15     (i) "Individualized family service plan" or "IFSP" means a 
 60.16  written plan for providing services to a child and the child's 
 60.17  family.  
 60.18     (j) "Interagency child find systems" means activities 
 60.19  developed on an interagency basis with the involvement of 
 60.20  interagency early intervention committees and other relevant 
 60.21  community groups to actively seek out, identify, and refer 
 60.22  infants and young children with, or at risk of, disabilities, 
 60.23  and their families. 
 60.24     (k) "Local primary agency" means the agency designated 
 60.25  jointly by the school and county board under subdivision 4. 
 60.26     (l) "Natural environments" means the child's home and 
 60.27  community settings in which children without disabilities 
 60.28  participate. 
 60.29     (m) "Parent" means the biological parent with parental 
 60.30  rights, adoptive parent, legal guardian, or surrogate parent. 
 60.31     (m) (n) "Part H state plan" means the annual state plan 
 60.32  application approved by the federal government under the 
 60.33  Individuals with Disabilities Education Act, United States Code, 
 60.34  title 20, section 1471 et seq. (Part H, Public Law Number 
 60.35  102-119). 
 60.36     (n) (o) "Pay for" means using federal, state, local, and 
 61.1   private dollars available for early intervention services. 
 61.2      (o) (p) "Respite" means short-term, temporary care provided 
 61.3   to a child with a disability due to the temporary absence or 
 61.4   need for relief of the family member or members or primary 
 61.5   caregiver, normally providing the care. 
 61.6      (p) (q) "State lead agency" means the state agency 
 61.7   receiving federal funds under the Individuals with Disabilities 
 61.8   Education Act, United States Code, title 20, section 1471 et 
 61.9   seq. (Part H, Public Law Number 102-119). 
 61.10     (q) (r) "Surrogate parent" means a person appointed by the 
 61.11  local education agency to assure that the rights of the child to 
 61.12  early intervention services are protected.  A person cannot be a 
 61.13  surrogate parent to a child for whom the person provides early 
 61.14  intervention services. 
 61.15     Sec. 16.  Minnesota Statutes 1997 Supplement, section 
 61.16  120.1701, subdivision 3, is amended to read: 
 61.17     Subd. 3.  [STATE INTERAGENCY COORDINATING COUNCIL.] An 
 61.18  interagency coordinating council of at least 17, but not more 
 61.19  than 25 members is established, in compliance with Public Law 
 61.20  Number 102-119, section 682.  The members shall be appointed by 
 61.21  the governor.  Council members shall elect the council chair.  
 61.22  The representative of the commissioner of children, families, 
 61.23  and learning may not serve as the chair.  The council shall be 
 61.24  composed of at least five parents, including persons of color, 
 61.25  of children with disabilities under age 12, including at least 
 61.26  three parents of a child with a disability under age seven, five 
 61.27  representatives of public or private providers of services for 
 61.28  children with disabilities under age five, including a special 
 61.29  education director, county social service director, local Head 
 61.30  Start director, and a community health services or public health 
 61.31  nursing administrator, one member of the senate, one member of 
 61.32  the house of representatives, one representative of teacher 
 61.33  preparation programs in early childhood-special education or 
 61.34  other preparation programs in early childhood intervention, at 
 61.35  least one representative of advocacy organizations for children 
 61.36  with disabilities under age five, one physician who cares for 
 62.1   young children with special health care needs, one 
 62.2   representative each from the commissioners of commerce, 
 62.3   children, families, and learning, health, human services, and 
 62.4   economic security a representative from the state agency 
 62.5   responsible for child care, and a representative from Indian 
 62.6   health services or a tribal council.  Section 15.059, 
 62.7   subdivisions 2 to 5, apply to the council.  The council shall 
 62.8   meet at least quarterly.  
 62.9      The council shall address methods of implementing the state 
 62.10  policy of developing and implementing comprehensive, 
 62.11  coordinated, multidisciplinary interagency programs of early 
 62.12  intervention services for children with disabilities and their 
 62.13  families. 
 62.14     The duties of the council include recommending policies to 
 62.15  ensure a comprehensive and coordinated system of all state and 
 62.16  local agency services for children under age five with 
 62.17  disabilities and their families.  The policies must address how 
 62.18  to incorporate each agency's services into a unified state and 
 62.19  local system of multidisciplinary assessment practices, 
 62.20  individual intervention plans, comprehensive systems to find 
 62.21  children in need of services, methods to improve public 
 62.22  awareness, and assistance in determining the role of interagency 
 62.23  early intervention committees.  
 62.24     Each year by June 1, the council shall recommend to the 
 62.25  governor and the commissioners of children, families, and 
 62.26  learning, health, human services, commerce, and economic 
 62.27  security policies for a comprehensive and coordinated system. 
 62.28     Notwithstanding any other law to the contrary, the state 
 62.29  interagency coordinating council shall expire on June 30, 2001. 
 62.30     Sec. 17.  Minnesota Statutes 1996, section 120.1701, 
 62.31  subdivision 11, is amended to read: 
 62.32     Subd. 11.  [PAYOR OF LAST RESORT.] (a) For fiscal years 
 62.33  1995 and 1996, The state lead agency shall establish maintain a 
 62.34  reserve account from federal sources to pay for services in 
 62.35  dispute or to pay for early intervention services when local 
 62.36  agencies have exhausted all other public and private funds 
 63.1   available for Part H eligible children. 
 63.2      (b) The lead agency shall report to the legislature by 
 63.3   January 1, 1996, regarding county board expenditures for early 
 63.4   intervention services and the continuing need and funding of the 
 63.5   reserve account.  
 63.6      Sec. 18.  Minnesota Statutes 1996, section 120.1701, 
 63.7   subdivision 17, is amended to read: 
 63.8      Subd. 17.  [MEDIATION PROCEDURE.] The commissioner, or the 
 63.9   commissioner's designee, of the state lead agency shall use 
 63.10  federal funds to provide mediation for the activities in 
 63.11  paragraphs (a) and (b). 
 63.12     (a) A parent may resolve a dispute regarding issues in 
 63.13  subdivision 16, paragraph (b), clause (5), through mediation.  
 63.14  If the parent chooses mediation, all public agencies involved in 
 63.15  the dispute shall participate in the mediation process.  The 
 63.16  parent and the public agencies must complete the mediation 
 63.17  process within 20 30 calendar days of the date the 
 63.18  commissioner office of dispute resolution receives a parent's 
 63.19  written request for mediation.  The mediation process may not be 
 63.20  used to delay a parent's right to a due process hearing.  The 
 63.21  resolution of the mediation is not binding on any party. 
 63.22     (b) Resolution of a dispute through mediation, or other 
 63.23  form of alternative dispute resolution, is not limited to formal 
 63.24  disputes arising from the objection of a parent or guardian and 
 63.25  is not limited to the period following a request for a due 
 63.26  process hearing. 
 63.27     (c) The local primary agency may request mediation on 
 63.28  behalf of involved agencies when there are disputes between 
 63.29  agencies regarding responsibilities to coordinate, provide, pay 
 63.30  for, or facilitate payment for early intervention services. 
 63.31     Sec. 19.  Minnesota Statutes 1996, section 120.173, 
 63.32  subdivision 1, is amended to read: 
 63.33     Subdivision 1.  [COMMISSIONER APPROVAL.] The commissioner 
 63.34  of children, families, and learning may approve applications 
 63.35  from school districts to provide prevention services as an 
 63.36  alternative to special education and other compensatory programs 
 64.1   during three school years.  A district with an approved program 
 64.2   may provide instruction and services in a regular education 
 64.3   classroom, or an area learning center, to eligible pupils.  
 64.4   Pupils eligible to participate in the program are low-performing 
 64.5   pupils who, based on documented experience, the professional 
 64.6   judgment of a classroom teacher, or a team of licensed 
 64.7   professionals, would eventually qualify for special education 
 64.8   instruction or related services under section 120.17 if the 
 64.9   intervention services authorized by this section were 
 64.10  unavailable.  Pupils may be provided services during extended 
 64.11  school days and throughout the entire year and through the 
 64.12  assurance of mastery program under section 124.3111. 
 64.13     Sec. 20.  Minnesota Statutes 1996, section 120.173, 
 64.14  subdivision 6, is amended to read: 
 64.15     Subd. 6.  [PUPIL RIGHTS.] A pupil participating in the 
 64.16  program must be individually evaluated according to the pupil's 
 64.17  actual abilities and needs.  A pupil who is eligible for 
 64.18  services under section 120.17 is entitled to procedural 
 64.19  protections provided under Public Law Number 94-142 United 
 64.20  States Code, title 20, section 33, in any matter that affects 
 64.21  the identification, evaluation, placement, or change in 
 64.22  placement of a pupil.  The district must ensure the protection 
 64.23  of a pupil's civil rights, provide equal educational 
 64.24  opportunities, and prohibit discrimination.  Failure to comply 
 64.25  with this subdivision will at least cause a district to become 
 64.26  ineligible to participate in the program.  Notwithstanding rules 
 64.27  of the state board of education, a pupil's rights under this 
 64.28  section cannot be waived by the state board. 
 64.29     Sec. 21.  Minnesota Statutes 1997 Supplement, section 
 64.30  120.181, is amended to read: 
 64.31     120.181 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
 64.32  EDUCATION AND TRANSPORTATION.] 
 64.33     The responsibility for providing instruction and 
 64.34  transportation for a pupil without a disability who has a 
 64.35  short-term or temporary physical or emotional illness or 
 64.36  disability, as determined by the standards of the state board, 
 65.1   and who is temporarily placed for care and treatment for that 
 65.2   illness or disability, shall be determined as provided in this 
 65.3   section.  
 65.4      (a) The school district of residence of the pupil shall be 
 65.5   the district in which the pupil's parent or guardian resides, or 
 65.6   when neither the pupil's parent nor guardian resides within the 
 65.7   state and tuition has been denied, the district designated by 
 65.8   the commissioner of children, families, and learning.  
 65.9      (b) Prior to the placement of a pupil for care and 
 65.10  treatment, the district of residence shall be notified and 
 65.11  provided an opportunity to participate in the placement 
 65.12  decision.  When an immediate emergency placement is necessary 
 65.13  and time does not permit resident district participation in the 
 65.14  placement decision, the district in which the pupil is 
 65.15  temporarily placed, if different from the district of residence, 
 65.16  shall notify the district of residence of the emergency 
 65.17  placement within 15 days of the placement.  
 65.18     (c) When a pupil without a disability is temporarily placed 
 65.19  for care and treatment in a day program and the pupil continues 
 65.20  to live within the district of residence during the care and 
 65.21  treatment, the district of residence shall provide instruction 
 65.22  and necessary transportation for the pupil.  The district may 
 65.23  provide the instruction at a school within the district of 
 65.24  residence, at the pupil's residence, or in the case of a 
 65.25  placement outside of the resident district, in the district in 
 65.26  which the day treatment program is located by paying tuition to 
 65.27  that district.  The district of placement may contract with a 
 65.28  facility to provide instruction by teachers licensed by the 
 65.29  state board of teaching.  
 65.30     (d) When a pupil without a disability is temporarily placed 
 65.31  in a residential program for care and treatment, the district in 
 65.32  which the pupil is placed shall provide instruction for the 
 65.33  pupil and necessary transportation while the pupil is receiving 
 65.34  instruction, and in the case of a placement outside of the 
 65.35  district of residence, the nonresident district shall bill the 
 65.36  district of residence for the actual cost of providing the 
 66.1   instruction for the regular school year and for summer school, 
 66.2   excluding transportation costs.  When a pupil without a 
 66.3   disability is temporarily placed in a residential program 
 66.4   outside the district of residence, the administrator of the 
 66.5   court placing the pupil shall send timely written notice of the 
 66.6   placement to the district of residence.  The district of 
 66.7   placement may contract with a residential facility to provide 
 66.8   instruction by teachers licensed by the state board of 
 66.9   teaching.  For purposes of this section, the state correctional 
 66.10  facilities operated on a fee-for-service basis are considered to 
 66.11  be residential programs for care and treatment. 
 66.12     (e) The district of residence shall include the pupil in 
 66.13  its residence count of pupil units and pay tuition as provided 
 66.14  in section 124.18 to the district providing the instruction.  
 66.15  Transportation costs shall be paid by the district providing the 
 66.16  transportation and the state shall pay transportation aid to 
 66.17  that district.  For purposes of computing state transportation 
 66.18  aid, pupils governed by this subdivision shall be included in 
 66.19  the disabled transportation category. 
 66.20     Sec. 22.  Minnesota Statutes 1996, section 123.935, 
 66.21  subdivision 1, is amended to read: 
 66.22     Subdivision 1.  [PROVIDED SERVICES.] The state board of 
 66.23  education shall promulgate rules under the provisions of chapter 
 66.24  14 requiring each school district or other intermediary service 
 66.25  area:  (a) to provide each year upon formal request by a 
 66.26  specific date by or on behalf of a nonpublic school pupil 
 66.27  enrolled in a nonpublic school located in that district or area, 
 66.28  the same specific health services as are provided for public 
 66.29  school pupils by the district where the nonpublic school is 
 66.30  located; and (b) to provide each year upon formal request by a 
 66.31  specific date by or on behalf of a nonpublic school secondary 
 66.32  pupil enrolled in a nonpublic school located in that district or 
 66.33  area, the same specific guidance and counseling services as are 
 66.34  provided for public school secondary pupils by the district 
 66.35  where the nonpublic school is located.  The district where the 
 66.36  nonpublic school is located shall provide the necessary 
 67.1   transportation within the district boundaries between the 
 67.2   nonpublic school and a public school or neutral site for 
 67.3   nonpublic school pupils who are provided pupil support services 
 67.4   pursuant to under this section if the district elects to provide 
 67.5   pupil support services at a site other than the nonpublic school.
 67.6   Each request for pupil support services shall set forth the 
 67.7   guidance and counseling or health services requested by or on 
 67.8   behalf of all eligible nonpublic school pupils enrolled in a 
 67.9   given nonpublic school.  No district or intermediary service 
 67.10  area shall expend an amount for these pupil support services 
 67.11  which exceeds the amount allotted to it under this section. 
 67.12     Sec. 23.  Minnesota Statutes 1996, section 123.935, 
 67.13  subdivision 2, is amended to read: 
 67.14     Subd. 2.  [LOCATION OF SERVICES.] Health and guidance and 
 67.15  counseling services may be provided to nonpublic school 
 67.16  pupils pursuant to under this section at a public school, a 
 67.17  neutral site, the nonpublic school or any other suitable 
 67.18  location.  Guidance and counseling services may be provided to 
 67.19  nonpublic school pupils pursuant to this section only at a 
 67.20  public school or a neutral site.  District or intermediary 
 67.21  service area personnel and representatives of the nonpublic 
 67.22  school pupils receiving pupil support services shall hold an 
 67.23  annual consultation regarding the type of services, provider of 
 67.24  services, and the location of the provision of these services.  
 67.25  The district board or intermediary service area governing board 
 67.26  shall make the final decision on the location of the provision 
 67.27  of these services. 
 67.28     Sec. 24.  Minnesota Statutes 1996, section 124.17, 
 67.29  subdivision 2, is amended to read: 
 67.30     Subd. 2.  [AVERAGE DAILY MEMBERSHIP.] Membership for pupils 
 67.31  in grades kindergarten through 12 and for prekindergarten pupils 
 67.32  with disabilities shall mean the number of pupils on the current 
 67.33  roll of the school, counted from the date of entry until 
 67.34  withdrawal.  The date of withdrawal shall mean the day the pupil 
 67.35  permanently leaves the school or the date it is officially known 
 67.36  that the pupil has left or has been legally excused.  However, a 
 68.1   pupil, regardless of age, who has been absent from school for 15 
 68.2   consecutive school days during the regular school year or for 
 68.3   five consecutive school days during summer school or 
 68.4   intersession classes of flexible school year programs without 
 68.5   receiving instruction in the home or hospital shall be dropped 
 68.6   from the roll and classified as withdrawn.  Nothing in this 
 68.7   section shall be construed as waiving the compulsory attendance 
 68.8   provisions cited in section 120.101.  Average daily membership 
 68.9   shall equal the sum for all pupils of the number of days of the 
 68.10  school year each pupil is enrolled in the district's schools 
 68.11  divided by the number of days the schools are in session.  Days 
 68.12  of summer school or intersession classes of flexible school year 
 68.13  programs shall only be included in the computation of membership 
 68.14  for pupils with a disability not appropriately served at level 
 68.15  4, 5, or 6 of the continuum of placement model described in 
 68.16  Minnesota Rules, part 3525.0200 primarily in the regular 
 68.17  classroom. 
 68.18     Sec. 25.  Minnesota Statutes 1997 Supplement, section 
 68.19  124.3111, subdivision 2, is amended to read: 
 68.20     Subd. 2.  [ELIGIBLE PUPILS.] A pupil is eligible to receive 
 68.21  services through an assurance of mastery program if the pupil 
 68.22  has not demonstrated progress toward mastering the required 
 68.23  graduation standards, after receiving instruction that was 
 68.24  designed to enable the pupil to make progress toward mastering 
 68.25  the required graduation standards in a regular classroom 
 68.26  setting.  A pupil also is eligible to receive services through 
 68.27  an assurance of mastery program if the pupil, based on the 
 68.28  professional judgment of a classroom teacher or a team of 
 68.29  licensed professionals, demonstrates a need for alternative 
 68.30  instructional strategies or interventions.  To determine pupil 
 68.31  eligibility, a district must use a process adopted by the school 
 68.32  board to review curriculum and instruction, for the subjects and 
 68.33  at the grade level at which the district uses the revenue. 
 68.34     Sec. 26.  Minnesota Statutes 1996, section 124.32, is 
 68.35  amended by adding a subdivision to read: 
 68.36     Subd. 13.  [LITIGATION AND HEARING COSTS.] (a) For fiscal 
 69.1   year 1999 and thereafter, the commissioner of children, 
 69.2   families, and learning, or the commissioner's designee, shall 
 69.3   use state funds to pay school districts for the administrative 
 69.4   costs of a due process hearing incurred under section 120.17, 
 69.5   subdivision 3b, paragraphs (e), (h), and (i), including hearing 
 69.6   officer fees, court reporter fees, mileage costs, transcript 
 69.7   costs, independent evaluations ordered by the hearing officer, 
 69.8   and rental of hearing rooms, but not including district attorney 
 69.9   fees.  To receive state aid under this paragraph, a school 
 69.10  district shall submit to the commissioner at the end of the 
 69.11  school year an itemized list of unreimbursed actual costs for 
 69.12  fees and other expenses under this paragraph.  State funds used 
 69.13  for aid to school districts under this paragraph shall be based 
 69.14  on the unreimbursed actual costs and fees submitted by a 
 69.15  district from previous school years. 
 69.16     (b) For fiscal year 1999 and thereafter, a school district, 
 69.17  to the extent to which it prevails under United States Code, 
 69.18  title 20, section 1415(i)(3)(B)(D) and Rule 68 of the Federal 
 69.19  Rules of Civil Procedure, shall receive state aid equal to 50 
 69.20  percent of the total actual cost of attorney fees incurred after 
 69.21  a request for a due process hearing under section 120.17, 
 69.22  subdivision 3b, paragraphs (e), (h), and (i), is served upon the 
 69.23  parties.  A district is eligible for reimbursement for attorney 
 69.24  fees under this paragraph only if: 
 69.25     (1) a court of competent jurisdiction determines that the 
 69.26  parent is not the prevailing party under United States Code, 
 69.27  title 20, section 1415(i)(3)(B)(D), or the parties stipulate 
 69.28  that the parent is not the prevailing party; 
 69.29     (2) the district has made a good faith effort to resolve 
 69.30  the dispute through mediation, but the obligation to mediate 
 69.31  does not compel the district to agree to a proposal or make a 
 69.32  concession; and 
 69.33     (3) the district made an offer of settlement under Rule 68 
 69.34  of the Federal Rules of Civil Procedure.  
 69.35     To receive aid, a school district that meets the criteria 
 69.36  of this paragraph shall submit to the commissioner at the end of 
 70.1   the school year an itemized list of unreimbursed actual attorney 
 70.2   fees associated with a due process hearing under section 120.17, 
 70.3   subdivision 3b, paragraphs (e), (h), and (i).  Aid under this 
 70.4   paragraph for each school district is based on unreimbursed 
 70.5   actual attorney fees submitted by the district from previous 
 70.6   school years. 
 70.7      (c) For fiscal year 1999 and thereafter, a school district 
 70.8   is eligible to receive state aid for 50 percent of the total 
 70.9   actual cost of attorney fees it incurs in appealing to a court 
 70.10  of competent jurisdiction the findings, conclusions, and order 
 70.11  of a due process hearing under section 120.17, subdivision 3b, 
 70.12  paragraphs (e), (h) and (i).  The district is eligible for 
 70.13  reimbursement under this paragraph only if the commissioner 
 70.14  authorizes the reimbursement after evaluating the merits of the 
 70.15  case.  In a case where the commissioner is a named party in the 
 70.16  litigation, the commissioner of the bureau of mediation services 
 70.17  shall make the determination regarding reimbursement.  The 
 70.18  commissioner's decision is final.  
 70.19     (d) The commissioner shall provide districts with a form on 
 70.20  which to annually report litigation costs under this section and 
 70.21  shall base aid estimates on those reports. 
 70.22     Sec. 27.  Minnesota Statutes 1997 Supplement, section 
 70.23  124.3201, subdivision 2, is amended to read: 
 70.24     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
 70.25  education base revenue equals the sum of the following amounts 
 70.26  computed using base year data: 
 70.27     (1) 68 percent of the salary of each essential person 
 70.28  employed in the district's program for children with a 
 70.29  disability during the regular school fiscal year, whether the 
 70.30  person is employed by one or more districts or a Minnesota 
 70.31  correctional facility operating on a fee-for-service basis; 
 70.32     (2) for the Minnesota state academy for the deaf or the 
 70.33  Minnesota state academy for the blind, 68 percent of the salary 
 70.34  of each instructional aide assigned to a child attending the 
 70.35  academy, if that aide is required by the child's individual 
 70.36  education plan; 
 71.1      (3) for special instruction and services provided to any 
 71.2   pupil by contracting with public, private, or voluntary agencies 
 71.3   other than school districts, in place of special instruction and 
 71.4   services provided by the district, 52 percent of the difference 
 71.5   between the amount of the contract and the basic revenue of the 
 71.6   district for that pupil for the fraction of the school day the 
 71.7   pupil receives services under the contract; 
 71.8      (4) for special instruction and services provided to any 
 71.9   pupil by contracting for services with public, private, or 
 71.10  voluntary agencies other than school districts, that are 
 71.11  supplementary to a full educational program provided by the 
 71.12  school district, 52 percent of the amount of the contract for 
 71.13  that pupil; 
 71.14     (5) for supplies and equipment purchased or rented for use 
 71.15  in the instruction of children with a disability an amount equal 
 71.16  to 47 percent of the sum actually expended by the district, or a 
 71.17  Minnesota correctional facility operating on a fee-for-service 
 71.18  basis, but not to exceed an average of $47 in any one school 
 71.19  year for each child with a disability receiving instruction; 
 71.20     (6) for fiscal years 1997 and later, special education base 
 71.21  revenue shall include amounts under clauses (1) to (5) for 
 71.22  special education summer programs provided during the base year 
 71.23  for that fiscal year; and 
 71.24     (7) for fiscal years 1999 and later, the cost of providing 
 71.25  transportation services for children with disabilities under 
 71.26  section 124.225, subdivision 1, paragraph (b), clause (4).  
 71.27     (b) If requested by a school district operating a special 
 71.28  education program during the base year for less than the full 
 71.29  school fiscal year, or a school district in which is located a 
 71.30  Minnesota correctional facility operating on a fee-for-service 
 71.31  basis for less than the full fiscal year, the commissioner may 
 71.32  adjust the base revenue to reflect the expenditures that would 
 71.33  have occurred during the base year had the program been operated 
 71.34  for the full school fiscal year. 
 71.35     (c) Notwithstanding paragraphs (a) and (b), the portion of 
 71.36  a school district's base revenue attributable to a Minnesota 
 72.1   correctional facility operating on a fee-for-service basis 
 72.2   during the facilities first year of operating on a 
 72.3   fee-for-service basis shall be computed using current year data. 
 72.4      Sec. 28.  Minnesota Statutes 1996, section 124.323, is 
 72.5   amended by adding a subdivision to read: 
 72.6      Subd. 4.  [TUITION.] Notwithstanding section 120.17, for 
 72.7   children who are nonresidents of Minnesota, receive services 
 72.8   under section 124.3201, subdivisions 1 and 2, and are placed in 
 72.9   the serving school district by court action, the serving school 
 72.10  district shall submit unreimbursed tuition bills for eligible 
 72.11  services to the department of children, families, and learning 
 72.12  instead of the resident school district.  To be eligible for 
 72.13  reimbursement, the serving school district, as part of its child 
 72.14  intake procedures, must demonstrate good faith effort to obtain 
 72.15  from the placing agency a financial commitment to pay tuition 
 72.16  costs. 
 72.17     Sec. 29.  Minnesota Statutes 1996, section 124A.034, 
 72.18  subdivision 2, is amended to read: 
 72.19     Subd. 2.  [LOCATION OF SERVICES.] (a) Public school 
 72.20  programs that provide instruction in core curriculum may be 
 72.21  provided to shared time pupils only at a public school building; 
 72.22  provided, however, that special instruction and services for 
 72.23  children with a disability required pursuant to section 120.17 
 72.24  may also be provided at a neutral site as defined in section 
 72.25  123.932, public school programs, excluding programs that provide 
 72.26  instruction in core curriculum, may be provided to shared time 
 72.27  pupils at a public school building, a neutral site, the 
 72.28  nonpublic school, or any other suitable location.  Guidance and 
 72.29  counseling and diagnostic and health services required pursuant 
 72.30  to under section 120.17 may also be provided at a nonpublic 
 72.31  school building.  As used in this subdivision, "diagnostic 
 72.32  services" means speech, hearing, vision, psychological, medical 
 72.33  and dental diagnostic services and "health services" means 
 72.34  physician, nursing or optometric services provided to pupils in 
 72.35  the field of physical and mental health.  
 72.36     (b) For those children with a disability under section 
 73.1   120.17 who attend nonpublic school at their parent's choice, a 
 73.2   school district may provide special instruction and services at 
 73.3   the nonpublic school building, a public school, or at a neutral 
 73.4   site other than a nonpublic school as defined in section 
 73.5   123.932, subdivision 9.  The school district shall determine the 
 73.6   location at which to provide services on a student-by-student 
 73.7   basis, consistent with federal law. 
 73.8      Sec. 30.  Minnesota Statutes 1996, section 124A.036, 
 73.9   subdivision 1a, is amended to read: 
 73.10     Subd. 1a.  [REPORTING; REVENUE FOR HOMELESS.] For all 
 73.11  school purposes, unless otherwise specifically provided by law, 
 73.12  a homeless pupil must be considered is a resident of the school 
 73.13  district that enrolls the pupil in which the homeless shelter or 
 73.14  other program, center, or facility assisting the homeless pupil 
 73.15  or the pupil's family is located. 
 73.16     Sec. 31.  Minnesota Statutes 1996, section 124A.036, is 
 73.17  amended by adding a subdivision to read: 
 73.18     Subd. 1b.  [REVENUE FOR CHILDREN OF DIVORCED PARENTS.] (a) 
 73.19  In those instances when the divorced parents share joint 
 73.20  physical custody of the child and the divorced parents reside in 
 73.21  different school districts, for all school purposes, unless 
 73.22  otherwise specifically provided by law, the child must be 
 73.23  considered a resident of the school district, as indicated by 
 73.24  the child's parents.  
 73.25     (b) When the child of divorced parents under paragraph (a) 
 73.26  resides with each parent on alternate weeks, the parents shall 
 73.27  be responsible for the transportation of the child to the border 
 73.28  of the resident school district during those weeks when the 
 73.29  child resides in the nonresident school district. 
 73.30     Sec. 32.  Minnesota Statutes 1996, section 124A.036, 
 73.31  subdivision 4, is amended to read: 
 73.32     Subd. 4.  [STATE AGENCY AND COURT PLACEMENTS.] If a state 
 73.33  agency or a court of the state desires to place a child in a 
 73.34  school district which is not the child's district of 
 73.35  residence or to place a pupil who is a parent under section 
 73.36  120.101, subdivision 3, in a school district which is not the 
 74.1   school district in which the pupil's biological or adoptive 
 74.2   parent or designated guardian resides, that agency or court 
 74.3   shall, prior to placement, allow the district of residence an 
 74.4   opportunity to participate in the placement decision and notify 
 74.5   the district of residence, the district of attendance and the 
 74.6   commissioner of children, families, and learning of the 
 74.7   placement decision.  When a state agency or court determines 
 74.8   that an immediate emergency placement is necessary and that time 
 74.9   does not permit district participation in the placement decision 
 74.10  or notice to the districts and the commissioner of children, 
 74.11  families, and learning of the placement decision prior to the 
 74.12  placement, the agency or court may make the decision and 
 74.13  placement without that participation or prior notice.  The 
 74.14  agency or court shall notify the district of residence, the 
 74.15  district of attendance and the commissioner of children, 
 74.16  families, and learning of an emergency placement within 15 days 
 74.17  of the placement.  
 74.18     Sec. 33.  Minnesota Statutes 1996, section 124C.45, 
 74.19  subdivision 2, is amended to read: 
 74.20     Subd. 2.  [ACCESS TO SERVICES.] A center shall have access 
 74.21  to the district's regular education programs, special education 
 74.22  programs, technology facilities, and staff.  It may contract 
 74.23  with individuals or post-secondary institutions.  It shall seek 
 74.24  the involvement of community education programs, post-secondary 
 74.25  institutions, interagency collaboratives, community resources, 
 74.26  businesses, and other federal, state, and local public agencies. 
 74.27     Sec. 34.  Minnesota Statutes 1997 Supplement, section 
 74.28  124C.46, subdivision 1, is amended to read: 
 74.29     Subdivision 1.  [PROGRAM FOCUS.] (a) The programs and 
 74.30  services of a center must focus on academic and learning skills, 
 74.31  applied learning opportunities, trade and vocational skills, 
 74.32  work-based learning opportunities, work experience, youth 
 74.33  service to the community, and transition services.  Applied 
 74.34  learning, work-based learning, and service learning may best be 
 74.35  developed in collaboration with a local education and 
 74.36  transitions partnership.  In addition to offering programs, the 
 75.1   center shall coordinate the use of other available educational 
 75.2   services, special education services, social services, health 
 75.3   services, and post-secondary institutions in the community and 
 75.4   services area.  
 75.5      (b) Consistent with the requirements of section 127.26 to 
 75.6   127.39, a school district may provide an alternative education 
 75.7   program for a student who is within the compulsory attendance 
 75.8   age under section 120.06, and who is involved in severe or 
 75.9   repeated disciplinary action. 
 75.10     Sec. 35.  Minnesota Statutes 1997 Supplement, section 
 75.11  124C.46, subdivision 2, is amended to read: 
 75.12     Subd. 2.  [PEOPLE TO BE SERVED.] A center shall provide 
 75.13  programs for secondary pupils and adults.  A center may also 
 75.14  provide programs and services for elementary and secondary 
 75.15  pupils who are not attending the center to assist them in being 
 75.16  successful in school.  An individual education plan team may 
 75.17  identify a center as an appropriate placement to the extent a 
 75.18  center can provide the student with the appropriate special 
 75.19  education services described in the student's plan.  Pupils 
 75.20  eligible to be served are those age five to adults 21 22 and 
 75.21  older who qualify under the graduation incentives program in 
 75.22  section 126.22, subdivision 2, or those pupils who are eligible 
 75.23  to receive special education services under section 120.17. 
 75.24     Sec. 36.  Minnesota Statutes 1996, section 124C.47, is 
 75.25  amended to read: 
 75.26     124C.47 [RESOURCE CENTER FOR OTHER PROGRAMS.] 
 75.27     An area learning center must serve as a resource for other 
 75.28  districts, educational, community, and business organizations.  
 75.29  The center may charge a fee for these services.  The following 
 75.30  services shall be provided for a region or the state:  
 75.31     (1) information and research for alternative programs; 
 75.32     (2) regional or state workshops on awareness, 
 75.33  identification, programs, and support for these pupils; and 
 75.34     (3) recommendations for staff qualifications to ensure the 
 75.35  most qualified staff can be selected for the programs; and 
 75.36     (4) recommendations for successful learning programs for 
 76.1   special education students placed in an alternative setting. 
 76.2      Sec. 37.  Minnesota Statutes 1996, section 124C.48, is 
 76.3   amended by adding a subdivision to read: 
 76.4      Subd. 3.  [SPECIAL EDUCATION REVENUE.] Payment of special 
 76.5   education revenue for nonresident pupils enrolled in the center 
 76.6   must be made according to section 120.17, subdivision 6. 
 76.7      Sec. 38.  Minnesota Statutes 1996, section 126.237, is 
 76.8   amended to read: 
 76.9      126.237 [ALTERNATE INSTRUCTION REQUIRED.] 
 76.10     (a) Before a pupil is referred for a special education 
 76.11  assessment, the district must conduct and document at least two 
 76.12  instructional strategies, alternatives, or interventions while 
 76.13  the pupil is in the regular classroom.  The pupil's teacher must 
 76.14  provide the documentation.  A special education assessment team 
 76.15  may waive this requirement when they determine the pupil's need 
 76.16  for the assessment is urgent.  This section may not be used to 
 76.17  deny a pupil's right to a special education assessment. 
 76.18     (b) A school district shall use alternative intervention 
 76.19  services, including the assurance of mastery program under 
 76.20  section 124.3111 and the supplemental early education program 
 76.21  under section 124.2613, to serve at-risk students who 
 76.22  demonstrate a need for alternative instructional strategies or 
 76.23  interventions. 
 76.24     Sec. 39.  Minnesota Statutes 1996, section 127.27, 
 76.25  subdivision 2, is amended to read: 
 76.26     Subd. 2.  [DISMISSAL.] "Dismissal" means the denial of the 
 76.27  appropriate current educational program to any pupil, including 
 76.28  exclusion, expulsion, and suspension.  It does not include 
 76.29  removal from class.  
 76.30     Sec. 40.  Minnesota Statutes 1997 Supplement, section 
 76.31  127.27, subdivision 10, is amended to read: 
 76.32     Subd. 10.  [SUSPENSION.] "Suspension" means an action by 
 76.33  the school administration, under rules promulgated by the school 
 76.34  board, prohibiting a pupil from attending school for a period of 
 76.35  no more than ten school days.  If a suspension is longer than 
 76.36  five days, the suspending administrator must provide the 
 77.1   superintendent with a reason for the longer suspension.  This 
 77.2   definition does not apply to dismissal from school for one 
 77.3   school day or less, except as provided in federal law for a 
 77.4   student with a disability.  Each suspension action shall may 
 77.5   include a readmission plan.  The readmission plan shall include, 
 77.6   where appropriate, a provision for implementing alternative 
 77.7   educational services upon readmission and may not be used to 
 77.8   extend the current suspension.  The school administration may 
 77.9   not impose consecutive suspensions against the same pupil for 
 77.10  the same course of conduct, or incident of misconduct, except 
 77.11  where the pupil will create an immediate and substantial danger 
 77.12  to self or to surrounding persons or property, or where the 
 77.13  district is in the process of initiating an expulsion, in which 
 77.14  case the school administration may extend the suspension up to a 
 77.15  total of 15 days.  In the case of a pupil with a disability, a 
 77.16  suspension may not exceed ten school days school districts must 
 77.17  comply with applicable federal law.  The school administration 
 77.18  shall implement alternative educational services to the extent 
 77.19  that when the suspension exceeds five days.  A separate 
 77.20  administrative conference is required for each period of 
 77.21  suspension. 
 77.22     Sec. 41.  Minnesota Statutes 1997 Supplement, section 
 77.23  127.27, subdivision 11, is amended to read: 
 77.24     Subd. 11.  [ALTERNATIVE EDUCATIONAL SERVICES.] "Alternative 
 77.25  educational services" may include, but are not limited to, 
 77.26  special tutoring, modified curriculum, modified instruction, 
 77.27  other modifications or adaptations, instruction through 
 77.28  electronic media, special education services as indicated by 
 77.29  appropriate assessment, homebound instruction, supervised 
 77.30  homework, or enrollment in another district or in an alternative 
 77.31  learning center under section 124C.45 selected to allow the 
 77.32  pupil to progress toward meeting graduation standards under 
 77.33  section 121.11, subdivision 7c, although in a different setting. 
 77.34     Sec. 42.  Minnesota Statutes 1997 Supplement, section 
 77.35  127.31, subdivision 15, is amended to read: 
 77.36     Subd. 15.  [ADMISSION OR READMISSION PLAN.] A school 
 78.1   administrator shall prepare and enforce an admission or 
 78.2   readmission plan for any pupil who is suspended, excluded, or 
 78.3   expelled from school.  The plan may include measures to improve 
 78.4   the pupil's behavior and require parental involvement in the 
 78.5   admission or readmission process, and may indicate the 
 78.6   consequences to the pupil of not improving the pupil's behavior. 
 78.7      Sec. 43.  Minnesota Statutes 1997 Supplement, section 
 78.8   127.32, is amended to read: 
 78.9      127.32 [APPEAL.] 
 78.10     A party to an exclusion or expulsion decision made under 
 78.11  sections 127.26 to 127.39 may appeal the decision to the 
 78.12  commissioner of children, families, and learning within 21 
 78.13  calendar days of school board action.  Upon being served with a 
 78.14  notice of appeal, the district shall provide the commissioner 
 78.15  and the parent or guardian with a complete copy of the hearing 
 78.16  record within five days of its receipt of the notice of appeal.  
 78.17  All written submissions by the appellant must be submitted and 
 78.18  served on the respondent within ten days of its actual receipt 
 78.19  of the transcript.  All written submissions by the respondent 
 78.20  must be submitted and served on the appellant within ten days of 
 78.21  its actual receipt of the written submissions of the appellant.  
 78.22  The decision of the school board must be implemented during the 
 78.23  appeal to the commissioner. 
 78.24     In an appeal under this section, the commissioner may 
 78.25  affirm the decision of the agency, may remand the decision for 
 78.26  additional findings, or may reverse or modify the decision if 
 78.27  the substantial rights of the petitioners may have been 
 78.28  prejudiced because the administrative findings, inferences, 
 78.29  conclusions, or decisions are: 
 78.30     (1) in violation of constitutional provisions; 
 78.31     (2) in excess of the statutory authority or jurisdiction of 
 78.32  the school district; 
 78.33     (3) made upon unlawful procedure, except as provided in 
 78.34  section 127.311; 
 78.35     (4) affected by other error of law; 
 78.36     (5) unsupported by substantial evidence in view of the 
 79.1   entire record submitted; or 
 79.2      (6) arbitrary or capricious. 
 79.3   The commissioner or the commissioner's representative shall make 
 79.4   a final decision based upon the record of evidence presented at 
 79.5   the hearing.  The commissioner shall issue a decision within 30 
 79.6   calendar days of receiving the entire record and the parties' 
 79.7   written submission on appeal.  The commissioner's decision shall 
 79.8   be final and binding upon the parties after the time for appeal 
 79.9   expires under section 127.33. 
 79.10     Sec. 44.  Minnesota Statutes 1997 Supplement, section 
 79.11  127.36, subdivision 1, is amended to read: 
 79.12     Subdivision 1.  [EXCLUSIONS AND EXPULSIONS.] The school 
 79.13  board shall report each exclusion or expulsion within 30 days of 
 79.14  the effective date of the action to the commissioner of 
 79.15  children, families, and learning.  This report shall include a 
 79.16  statement of alternative educational services given the pupil 
 79.17  before beginning exclusion or expulsion proceedings, and the 
 79.18  reason for, the effective date, and the duration of the 
 79.19  exclusion or expulsion.  
 79.20     Sec. 45.  Minnesota Statutes 1997 Supplement, section 
 79.21  127.38, is amended to read: 
 79.22     127.38 [POLICIES TO BE ESTABLISHED.] 
 79.23     (a) The commissioner of children, families, and learning 
 79.24  shall promulgate guidelines to assist each school board.  Each 
 79.25  school board shall establish uniform criteria for dismissal and 
 79.26  adopt written policies and rules to effectuate the purposes of 
 79.27  sections 127.26 to 127.39.  The policies shall emphasize 
 79.28  preventing dismissals through early detection of problems and 
 79.29  shall be designed to address students' inappropriate behavior 
 79.30  from recurring.  The policies shall recognize the continuing 
 79.31  responsibility of the school for the education of the pupil 
 79.32  during the dismissal period.  The alternative educational 
 79.33  services, if the pupil wishes to take advantage of them, must be 
 79.34  adequate to allow the pupil to make progress towards meeting the 
 79.35  graduation standards adopted under section 121.11, subdivision 
 79.36  7c, and help prepare the pupil for readmission.  
 80.1      (b) An area learning center under section 124C.45 may not 
 80.2   prohibit an expelled or excluded pupil from enrolling solely 
 80.3   because a district expelled or excluded the pupil.  The board of 
 80.4   the area learning center may use the provisions of The Pupil 
 80.5   Fair Dismissal Act to exclude a pupil or to require an admission 
 80.6   plan. 
 80.7      (c) The commissioner shall actively encourage and assist 
 80.8   school districts to cooperatively establish alternative 
 80.9   educational services within school buildings or at alternative 
 80.10  program sites that offer instruction to pupils who are dismissed 
 80.11  from school for willfully engaging in dangerous, disruptive, or 
 80.12  violent behavior, including for possessing a firearm in a school 
 80.13  zone. 
 80.14     Sec. 46.  Minnesota Statutes 1996, section 256B.0625, 
 80.15  subdivision 26, is amended to read: 
 80.16     Subd. 26.  [SPECIAL EDUCATION SERVICES.] Medical assistance 
 80.17  covers medical services identified in a recipient's 
 80.18  individualized education plan and covered under the medical 
 80.19  assistance state plan.  The services may be provided by a 
 80.20  Minnesota school district that is enrolled as a medical 
 80.21  assistance provider or its subcontractor, and only if the 
 80.22  services meet all the requirements otherwise applicable if the 
 80.23  service had been provided by a provider other than a school 
 80.24  district, in the following areas:  medical necessity, 
 80.25  physician's orders, documentation, personnel qualifications, and 
 80.26  prior authorization requirements.  Services of a speech-language 
 80.27  pathologist provided under this section are covered 
 80.28  notwithstanding Minnesota Rules, part 9505.0390, subpart 1, item 
 80.29  L, if the person: 
 80.30     (1) holds a masters degree in speech-language pathology; 
 80.31     (2) is licensed by the Minnesota board of teaching as an 
 80.32  educational speech-language pathologist; and 
 80.33     (3) either has a certificate of clinical competence from 
 80.34  the American Speech and Hearing Association, has completed the 
 80.35  equivalent educational requirements and work experience 
 80.36  necessary for the certificate or has completed the academic 
 81.1   program and is acquiring supervised work experience to qualify 
 81.2   for the certificate.  Medical assistance coverage for medically 
 81.3   necessary services provided under other subdivisions in this 
 81.4   section may not be denied solely on the basis that the same or 
 81.5   similar services are covered under this subdivision. 
 81.6      Sec. 47.  Laws 1993, chapter 224, article 3, section 32, is 
 81.7   amended to read: 
 81.8      Sec. 32.  [ASL GUIDELINES.] 
 81.9      (a) In determining appropriate licensure requirements for 
 81.10  teachers of deaf and hard of hearing students under Minnesota 
 81.11  Statutes, section 125.189, the board of teaching shall develop 
 81.12  the requirements according to the guidelines described in this 
 81.13  section. 
 81.14     (b) Each teacher must complete the American sign language 
 81.15  sign communication proficiency interview or a comparable 
 81.16  American sign language evaluation that the board of teaching, 
 81.17  the Minnesota association of deaf citizens, and the Minnesota 
 81.18  council for the hearing impaired accept as a means for 
 81.19  establishing the teacher's baseline level of American sign 
 81.20  language skills.  A teacher shall not be charged for this 
 81.21  evaluation. 
 81.22     (c) Each teacher must complete 60 continuing education 
 81.23  credits in American sign language, American sign language 
 81.24  linguistics, or deaf culture for every 120 continuing education 
 81.25  credits the teacher is required to complete to renew a teaching 
 81.26  license. 
 81.27     (d) As a condition of obtaining In order to obtain an 
 81.28  initial license to teach deaf and hard of hearing students, or 
 81.29  to apply for a Minnesota teaching license, after being licensed 
 81.30  to teach in another state, a person must demonstrate in the sign 
 81.31  communication proficiency interview an intermediate plus level 
 81.32  of proficiency in American sign language. 
 81.33     (e) Each teacher applying to renew a teaching license and 
 81.34  each teacher holding a teaching license from another state who 
 81.35  wishes to apply for a Minnesota teaching license must take the 
 81.36  American sign language sign communication proficiency interview 
 82.1   or a comparable American sign language evaluation every five 
 82.2   years until the teacher demonstrates a minimum, or survival 
 82.3   plus, level of proficiency in American sign language. 
 82.4      (f) A teacher working directly with students whose primary 
 82.5   language is American sign language should demonstrate at least 
 82.6   an advanced level of proficiency in American sign language.  The 
 82.7   board should not consider a minimum, or survival plus, level of 
 82.8   proficiency adequate for providing direct instruction to 
 82.9   students whose primary language is American sign language. 
 82.10     (g) To renew a teaching license, a teacher must comply with 
 82.11  paragraphs (c) and (e) in addition to other applicable board 
 82.12  requirements.  A teacher's ability to demonstrate a minimum, or 
 82.13  survival plus, level of proficiency in American sign language is 
 82.14  not a condition for renewing the teacher's license. 
 82.15     (h) A teacher who demonstrates an increased proficiency in 
 82.16  American sign language skill in the American sign language sign 
 82.17  communication proficiency interview or a comparable American 
 82.18  sign language evaluation shall receive credit toward completing 
 82.19  the requirements of paragraph (c).  The number of continuing 
 82.20  education credits the teacher receives is based on the teacher's 
 82.21  increased level of proficiency from the teacher's baseline level:
 82.22     (1) 35 continuing education credits for demonstrating an 
 82.23  intermediate level of proficiency; 
 82.24     (2) 40 continuing education credits for demonstrating an 
 82.25  intermediate plus level of proficiency; 
 82.26     (3) 45 continuing education credits for demonstrating an 
 82.27  advanced level of proficiency; 
 82.28     (4) 50 continuing education credits for demonstrating an 
 82.29  advanced plus level of proficiency; 
 82.30     (5) 55 continuing education credits for demonstrating a 
 82.31  superior level of proficiency; and 
 82.32     (6) 60 continuing education credits for demonstrating a 
 82.33  superior plus level of proficiency. 
 82.34     Sec. 48.  Laws 1997, First Special Session chapter 4, 
 82.35  article 2, section 51, subdivision 2, is amended to read: 
 82.36     Subd. 2.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 
 83.1   For grants to American Indian language and culture education 
 83.2   programs according to Minnesota Statutes, section 126.54, 
 83.3   subdivision 1: 
 83.4        $591,000     .....     1998
 83.5        $591,000 $716,000    .....     1999
 83.6      The 1998 appropriation includes $59,000 for 1997 and 
 83.7   $532,000 for 1998.  
 83.8      The 1999 appropriation includes $59,000 for 1998 and 
 83.9   $532,000 $657,000 for 1999.  
 83.10     Any balance in the first year does not cancel but is 
 83.11  available in the second year. 
 83.12     Sec. 49.  Laws 1997, First Special Session chapter 4, 
 83.13  article 2, section 51, subdivision 4, is amended to read: 
 83.14     Subd. 4.  [AMERICAN INDIAN POST-SECONDARY PREPARATION 
 83.15  GRANTS.] For American Indian post-secondary preparation grants 
 83.16  according to Minnesota Statutes, section 124.481: 
 83.17       $857,000     .....     1998
 83.18       $857,000   $982,000    .....     1999
 83.19     Any balance in the first year does not cancel but is 
 83.20  available in the second year. 
 83.21     Sec. 50.  Laws 1997, First Special Session chapter 4, 
 83.22  article 2, section 51, subdivision 5, is amended to read: 
 83.23     Subd. 5.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
 83.24  Indian scholarships according to Minnesota Statutes, section 
 83.25  124.48: 
 83.26       $1,600,000     .....     1998 
 83.27       $1,600,000 $1,875,000    .....     1999 
 83.28     Any balance in the first year does not cancel but is 
 83.29  available in the second year. 
 83.30     Sec. 51.  Laws 1997, First Special Session chapter 4, 
 83.31  article 2, section 51, subdivision 25, is amended to read: 
 83.32     Subd. 25.  [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 
 83.33  HOMELESS CHILDREN.] For matching grants for education programs 
 83.34  for homeless children: 
 83.35       $400,000 $1,100,000     .....     1998
 83.36     This appropriation is available until June 30, 1999.  
 84.1      Sec. 52.  Laws 1997, First Special Session chapter 4, 
 84.2   article 2, section 51, subdivision 29, is amended to read: 
 84.3      Subd. 29.  [FIRST GRADE PREPAREDNESS.] (a) For grants for 
 84.4   the first grade preparedness program under Minnesota Statutes, 
 84.5   section 124.2613, and for school sites that have provided a 
 84.6   full-day kindergarten option for kindergarten students enrolled 
 84.7   in fiscal years 1996 and 1997: 
 84.8        $5,000,000     .....     1998 
 84.9        $5,000,000 $6,500,000    .....     1999 
 84.10     (b) To be a qualified site, licensed teachers must have 
 84.11  taught the optional full-day kindergarten classes.  A district 
 84.12  that charged a fee for students participating in an optional 
 84.13  full-day program is eligible to receive the grant to provide 
 84.14  full-day kindergarten for all students as required by Minnesota 
 84.15  Statutes, section 124.2613, subdivision 4.  Districts with 
 84.16  eligible sites must apply to the commissioner of children, 
 84.17  families, and learning for a grant. 
 84.18     (c) This appropriation must first be used to fund programs 
 84.19  operating during the 1996-1997 school year under paragraph (b) 
 84.20  and Minnesota Statutes, section 124.2613.  Any remaining funds 
 84.21  may be used to expand the number of sites providing first grade 
 84.22  preparedness programs. 
 84.23     Sec. 53.  [RULES AFFECTING SPECIAL EDUCATION INSTRUCTION 
 84.24  AND SERVICES.] 
 84.25     (a) The state board of education must amend all rules 
 84.26  relating to providing special instruction and services to 
 84.27  children with a disability so that the rules do not impose 
 84.28  requirements that exceed federal law.  Consistent with the 
 84.29  report from the commissioner to compare federal and state 
 84.30  special education law, the state board may use the expedited 
 84.31  process under Minnesota Statutes 1997, section 14.389, to amend 
 84.32  these rules. 
 84.33     (b) As of July 1, 1999, any rules relating to providing 
 84.34  special instruction and services to children with a disability 
 84.35  are invalid to the extent they exceed the requirements in 
 84.36  federal law unless a law is enacted before July 1, 1999, 
 85.1   indicating the intent of the state to exceed one or more federal 
 85.2   requirements. 
 85.3      Sec. 54.  [REPORT TO COMPARE FEDERAL AND STATE SPECIAL 
 85.4   EDUCATION LAW.] 
 85.5      Subdivision 1.  [REPORT.] The commissioner of children, 
 85.6   families, and learning shall prepare a report comparing existing 
 85.7   and currently proposed federal laws and regulations and state 
 85.8   laws and rules governing special education, indicating those 
 85.9   state laws and rules governing special education that exceed or 
 85.10  expand upon minimum requirements under federal special education 
 85.11  law or regulations.  The commissioner shall make the report 
 85.12  available by September 30, 1998, to the public, the state board 
 85.13  of education, and the education committees of the legislature 
 85.14  for consideration of amending state rules.  
 85.15     Sec. 55.  [SPEECH-LANGUAGE PATHOLOGISTS.] 
 85.16     The board of teaching shall allow individuals who hold a 
 85.17  certificate of clinical competence from the American 
 85.18  Speech-Language-Hearing Association to be licensed as 
 85.19  speech-language pathologists. 
 85.20     Sec. 56.  [BOARD OF TEACHING; RULE CHANGES; SPEECH-LANGUAGE 
 85.21  SERVICES.] 
 85.22     The board of teaching, in order to comply with section 55, 
 85.23  shall by rule allow individuals who hold a certificate of 
 85.24  clinical competence from the American Speech-Language-Hearing 
 85.25  Association to be licensed as speech-language pathologists. 
 85.26     Sec. 57.  [IN-SCHOOL BEHAVIOR INTERVENTION GRANTS.] 
 85.27     Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
 85.28  children, families, and learning shall award grants to develop, 
 85.29  adapt, implement, or evaluate discipline programs that prevent 
 85.30  behavior that leads to suspensions or expulsions and that 
 85.31  provide students with an alternative education setting within 
 85.32  the school or program site.  A grant recipient must be a school 
 85.33  site, school district, charter school, or provider of an 
 85.34  alternative education program. 
 85.35     Subd. 2.  [EVALUATION.] The commissioner shall evaluate the 
 85.36  grant sites to determine the impact of the discipline program on 
 86.1   measures of student performance and behavior, including, but not 
 86.2   limited to, achievement, attendance, suspensions, expulsions, 
 86.3   and the impact on the site, student body, classroom, and school 
 86.4   faculty.  The commissioner may make recommendations to the 
 86.5   education committees of the legislature based on the results of 
 86.6   the grant recipients and disseminate information about 
 86.7   successful programs to interested schools and school sites. 
 86.8      Sec. 58.  [SPECIAL EDUCATION BASE ADJUSTMENT; ROCHESTER.] 
 86.9      Special education revenue for independent school district 
 86.10  No. 535, Rochester, is increased by $150,000 for fiscal year 
 86.11  1999 to reflect the increased special education costs associated 
 86.12  with the opening of a new facility for juvenile offenders in 
 86.13  Olmsted county.  
 86.14     Sec. 59.  [DEPARTMENT OF HUMAN SERVICES.] 
 86.15     The department of human services shall report to the 
 86.16  legislature on January 15 for the years 1999, 2000, and 2001, 
 86.17  the medical assistance MinnesotaCare reimbursed costs of special 
 86.18  education services, which are covered services under Minnesota 
 86.19  Statutes, chapter 256B.  If the November 1998 forecast for the 
 86.20  state medical assistance expenditures for special education 
 86.21  services which are covered services under Minnesota Statutes, 
 86.22  chapter 256B, exceeds $8,000,000 per year, the department of 
 86.23  children, families, and learning must develop a plan to allocate 
 86.24  additional resources to cover the excess costs. 
 86.25     Sec. 60.  [APPROPRIATIONS.] 
 86.26     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 86.27  LEARNING.] The sums indicated in this section are appropriated 
 86.28  from the general fund to the department of children, families, 
 86.29  and learning for the fiscal years designated. 
 86.30     Subd. 2.  [IN-SCHOOL BEHAVIOR INTERVENTION GRANTS.] For 
 86.31  grants to develop, implement, and evaluate school discipline 
 86.32  policies under section 57: 
 86.33         $300,000     .....     1999 
 86.34     Grant recipients may expend grant proceeds over a 
 86.35  three-year period.  Of this amount, $13,500 is for performing an 
 86.36  evaluation. 
 87.1      Subd. 3.  [STATEWIDE THIRD-PARTY BILLING SYSTEM; TECHNICAL 
 87.2   ASSISTANCE.] For developing and implementing an effective and 
 87.3   efficient statewide third-party billing system under section 2: 
 87.4          $200,000     .....     1999 
 87.5      Funds remain available until expended. 
 87.6      Subd. 4.  [LITIGATION COSTS.] For paying the litigation 
 87.7   costs a district actually incurs under section 26: 
 87.8          $500,000     .....     1999
 87.9      If the amount appropriated is insufficient to fully fund 
 87.10  the aid for hearing and litigation costs and attorney fees under 
 87.11  Minnesota Statutes, section 124.32, subdivision 13, paragraph 
 87.12  (b), the commissioner shall prorate the appropriation to school 
 87.13  districts based on the amount of aid calculated for each 
 87.14  district. 
 87.15     Subd. 5.  [PROVIDING TECHNICAL ASSISTANCE.] For department 
 87.16  staff to provide technical assistance and training to school 
 87.17  districts and cooperative units under section 2: 
 87.18          $50,000     .....     1999 
 87.19     Subd. 6.  [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 
 87.20  reimbursing serving school districts for unreimbursed eligible 
 87.21  expenditures attributable to children placed in the serving 
 87.22  school district by court action under Minnesota Statutes, 
 87.23  section 124.323: 
 87.24         $350,000     .....     1999
 87.25     Subd. 7.  [SPECIAL EDUCATION ADJUSTMENT; ROCHESTER.] For a 
 87.26  special education revenue adjustment for independent school 
 87.27  district No. 535, Rochester, according to section 58: 
 87.28       $  135,000     .....     1999 
 87.29     Sec. 61.  [APPROPRIATION.] 
 87.30     Subdivision 1.  [DEPARTMENT OF HUMAN SERVICES.] The sums 
 87.31  indicated in this section are appropriated from the general fund 
 87.32  to the department of human services for the fiscal years 
 87.33  designated. 
 87.34     Subd. 2.  [PROVIDING TECHNICAL ASSISTANCE.] For technical 
 87.35  assistance and training under section 2: 
 87.36          $50,000     .....     1999 
 88.1      Subd. 3.  [MEDICAL ASSISTANCE COSTS.] For additional 
 88.2   medical assistance costs associated with state law changes 
 88.3   regarding speech-language pathologists in Minnesota Statutes, 
 88.4   section 256B.0625, subdivision 26: 
 88.5          $458,000     ....     1999 
 88.6      Subd. 4.  [MINNESOTACARE COSTS.] For transfer into the 
 88.7   health care access fund for the purposes of state law changes 
 88.8   regarding speech-language pathologists in Minnesota Statutes, 
 88.9   section 256B.0625, subdivision 26: 
 88.10          $93,000     ....     1999 
 88.11     Sec. 62.  [MEDICAL COST REIMBURSEMENT DESIGNATION.] 
 88.12     For fiscal years 2000 and 2001, the department of children, 
 88.13  families, and learning must reimburse the department of human 
 88.14  services for medical assistance and MinnesotaCare costs 
 88.15  associated with state law changes regarding the speech-language 
 88.16  pathologists in Minnesota Statutes, section 256B.0625, 
 88.17  subdivision 26. 
 88.18     Sec. 63.  [REPEALER.] 
 88.19     Minnesota Rules, part 3525.2750, subpart 1, item B, is 
 88.20  repealed. 
 88.21     Sec. 64.  [EFFECTIVE DATES.] 
 88.22     (a) Sections 2, 9, 25, 42, 43, 44, 45, 46, 48, 49, 50, 53, 
 88.23  55, and 56, are effective the day following final enactment.  
 88.24     (b) Section 14 is effective July 1, 1999. 
 88.25                             ARTICLE 3 
 88.26         INTERAGENCY SERVICE; LIFELONG LEARNING; TECHNOLOGY 
 88.27     Section 1.  Minnesota Statutes 1996, section 120.1701, 
 88.28  subdivision 5, is amended to read: 
 88.29     Subd. 5.  [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) 
 88.30  A school district, group of districts, or special education 
 88.31  cooperative, in cooperation with the health and human service 
 88.32  agencies located in the county or counties in which the district 
 88.33  or cooperative is located, shall establish an interagency early 
 88.34  intervention committee for children with disabilities under age 
 88.35  five and their families under this section, and for children 
 88.36  with disabilities ages three to 22 consistent with the 
 89.1   requirements under sections 120.1703 and 120.1705.  Committees 
 89.2   shall include representatives of local and regional health, 
 89.3   education, and county human service agencies; county boards; 
 89.4   school boards; early childhood family education programs; 
 89.5   parents of young children with disabilities under age 12; 
 89.6   current service providers; and may also include representatives 
 89.7   from other private or public agencies and school nurses.  The 
 89.8   committee shall elect a chair from among its members and shall 
 89.9   meet at least quarterly. 
 89.10     (b) The committee shall develop and implement interagency 
 89.11  policies and procedures concerning the following ongoing duties: 
 89.12     (1) develop public awareness systems designed to inform 
 89.13  potential recipient families of available programs and services; 
 89.14     (2) implement interagency child find systems designed to 
 89.15  actively seek out, identify, and refer infants and young 
 89.16  children with, or at risk of, disabilities and their families; 
 89.17     (3) establish and evaluate the identification, referral, 
 89.18  child and family assessment systems, procedural safeguard 
 89.19  process, and community learning systems to recommend, where 
 89.20  necessary, alterations and improvements; 
 89.21     (4) assure the development of individualized family service 
 89.22  plans for all eligible infants and toddlers with disabilities 
 89.23  from birth through age two, and their families, and individual 
 89.24  education plans and individual service plans when necessary to 
 89.25  appropriately serve children with disabilities, age three and 
 89.26  older, and their families and recommend assignment of financial 
 89.27  responsibilities to the appropriate agencies.  Agencies are 
 89.28  encouraged to develop individual family service plans for 
 89.29  children with disabilities, age three and older; 
 89.30     (5) implement a process for assuring that services involve 
 89.31  cooperating agencies at all steps leading to individualized 
 89.32  programs; 
 89.33     (6) facilitate the development of a transitional plan if a 
 89.34  service provider is not recommended to continue to provide 
 89.35  services; 
 89.36     (7) identify the current services and funding being 
 90.1   provided within the community for children with disabilities 
 90.2   under age five and their families; 
 90.3      (8) develop a plan for the allocation and expenditure of 
 90.4   additional state and federal early intervention funds under 
 90.5   United States Code, title 20, section 1471 et seq. (Part H, 
 90.6   Public Law Number 102-119) and United States Code, title 20, 
 90.7   section 631, et seq. (Chapter I, Public Law Number 89-313); and 
 90.8      (9) develop a policy that is consistent with section 13.05, 
 90.9   subdivision 9, and federal law to enable a member of an 
 90.10  interagency early intervention committee to allow another member 
 90.11  access to data classified as not public. 
 90.12     (c) The local committee shall also: 
 90.13     (1) participate in needs assessments and program planning 
 90.14  activities conducted by local social service, health and 
 90.15  education agencies for young children with disabilities and 
 90.16  their families; 
 90.17     (2) review and comment on the early intervention section of 
 90.18  the total special education system for the district, the county 
 90.19  social service plan, the section or sections of the community 
 90.20  health services plan that address needs of and service 
 90.21  activities targeted to children with special health care needs, 
 90.22  and the section of the maternal and child health special project 
 90.23  grants that address needs of and service activities targeted to 
 90.24  children with chronic illness and disabilities; and 
 90.25     (3) prepare a yearly summary on the progress of the 
 90.26  community in serving young children with disabilities, and their 
 90.27  families, including the expenditure of funds, the identification 
 90.28  of unmet service needs identified on the individual family 
 90.29  services plan and other individualized plans, and local, state, 
 90.30  and federal policies impeding the implementation of this section.
 90.31     (d) The summary must be organized following a format 
 90.32  prescribed by the commissioner of the state lead agency and must 
 90.33  be submitted to each of the local agencies and to the state 
 90.34  interagency coordinating council by October 1 of each year. 
 90.35     The departments of children, families, and learning, 
 90.36  health, and human services must provide assistance to the local 
 91.1   agencies in developing cooperative plans for providing services. 
 91.2      Sec. 2.  [120.1703] [COORDINATED INTERAGENCY SERVICES.] 
 91.3      Subdivision 1.  [CITATION.] Sections 120.1703 and 120.1705 
 91.4   shall be cited as the "Interagency Services for Children with 
 91.5   Disabilities Act." 
 91.6      Subd. 2.  [PURPOSE.] It is the policy of the state to 
 91.7   develop and implement a coordinated, multidisciplinary, 
 91.8   interagency intervention service system for children ages three 
 91.9   to 22 with disabilities. 
 91.10     Subd. 3.  [DEFINITIONS.] For purposes of sections 120.1703 
 91.11  and 120.1705, the following terms have the meanings given them: 
 91.12     (a) "Health plan" means: 
 91.13     (1) a health plan under section 62Q.01, subdivision 3; 
 91.14     (2) a county-based purchasing plan under section 256B.692; 
 91.15     (3) a self-insured health plan established by a local 
 91.16  government under section 471.617; or 
 91.17     (4) self-insured health coverage provided by the state to 
 91.18  its employees or retirees. 
 91.19     (b) For purposes of this section, "health plan company" 
 91.20  means an entity that issues a health plan as defined in 
 91.21  paragraph (a). 
 91.22     (c) "Individual interagency intervention plan" means a 
 91.23  standardized written plan describing those programs or services 
 91.24  and the accompanying funding sources available to eligible 
 91.25  children with disabilities. 
 91.26     (d) "Interagency intervention service system" means a 
 91.27  system that coordinates services and programs required in state 
 91.28  and federal law to meet the needs of eligible children with 
 91.29  disabilities ages three to 22, including: 
 91.30     (1) services provided under the following programs or 
 91.31  initiatives administered by state or local agencies: 
 91.32     (i) the maternal and child health program under title V of 
 91.33  the Social Security Act, United States Code, title 42, sections 
 91.34  701 to 709; 
 91.35     (ii) the Individuals with Disabilities Education Act under 
 91.36  United States Code, title 20, chapter 33, subchapter II, 
 92.1   sections 1411 to 1420; 
 92.2      (iii) medical assistance under the Social Security Act, 
 92.3   United States Code, title 42, chapter 7, subchapter XIX, section 
 92.4   1396, et seq.; 
 92.5      (iv) the Developmental Disabilities Assistance and Bill of 
 92.6   Rights Act, United States Code, title 42, chapter 75, subchapter 
 92.7   II, sections 6021 to 6030, Part B; 
 92.8      (v) the Head Start Act, United States Code, title 42, 
 92.9   chapter 105, subchapter II, sections 9831 to 9852; 
 92.10     (vi) rehabilitation services provided under chapter 268A; 
 92.11     (vii) juvenile court act services provided under sections 
 92.12  260.011 to 260.301; 
 92.13     (viii) the children's mental health collaboratives under 
 92.14  section 245.493; 
 92.15     (ix) the family service collaboratives under section 
 92.16  121.8355; 
 92.17     (x) the family community support plan under section 
 92.18  245.4881, subdivision 4; 
 92.19     (xi) the Minnesota care program under chapter 256L; 
 92.20     (xii) the community health services grants under chapter 
 92.21  145; 
 92.22     (xiii) the community social services act funding under the 
 92.23  Social Security Act, United States Code, title 42, sections 1397 
 92.24  to 1397f; and 
 92.25     (xiv) the community interagency transition committees under 
 92.26  section 120.17, subdivision 16; 
 92.27     (2) services provided under a health plan in conformity 
 92.28  with an individual family service plan or an individual 
 92.29  education plan; and 
 92.30     (3) additional appropriate services that local agencies and 
 92.31  counties provide on an individual need basis upon determining 
 92.32  eligibility and receiving a request from the interagency early 
 92.33  intervention committee and the child's parent. 
 92.34     (e) "Children with disabilities" has the meaning given in 
 92.35  section 120.03. 
 92.36     (f) A "standardized written plan" means those individual 
 93.1   services or programs available through the interagency 
 93.2   intervention service system to an eligible child other than the 
 93.3   services or programs described in the child's individual 
 93.4   education plan or the child's individual family service plan. 
 93.5      Subd. 4.  [STATE INTERAGENCY COMMITTEE.] (a) The governor 
 93.6   shall convene an 18-member interagency committee to develop and 
 93.7   implement a coordinated, multidisciplinary, interagency 
 93.8   intervention service system for children ages three to 22 with 
 93.9   disabilities.  The commissioners of commerce, children, 
 93.10  families, and learning, health, human rights, human services, 
 93.11  economic security, and corrections shall each appoint two 
 93.12  committee members from their departments; the association of 
 93.13  Minnesota counties shall appoint two county representatives, one 
 93.14  of whom must be an elected official, as committee members; and 
 93.15  the Minnesota school boards association and the school nurse 
 93.16  association of Minnesota shall each appoint one committee 
 93.17  member.  The committee shall select a chair from among its 
 93.18  members. 
 93.19     (b) The committee shall: 
 93.20     (1) identify and assist in removing state and federal 
 93.21  barriers to local coordination of services provided to children 
 93.22  with disabilities; 
 93.23     (2) identify adequate, equitable, and flexible funding 
 93.24  sources to streamline these services; 
 93.25     (3) develop guidelines for implementing policies that 
 93.26  ensure a comprehensive and coordinated system of all state and 
 93.27  local agency services, including multidisciplinary assessment 
 93.28  practices for children with disabilities ages three to 22; 
 93.29     (4) develop, consistent with federal law, a standardized 
 93.30  written plan for providing services to a child with 
 93.31  disabilities; 
 93.32     (5) identify how current systems for dispute resolution can 
 93.33  be coordinated and develop guidelines for that coordination; 
 93.34     (6) develop an evaluation process to measure the success of 
 93.35  state and local interagency efforts in improving the quality and 
 93.36  coordination of services to children with disabilities ages 
 94.1   three to 22; 
 94.2      (7) develop guidelines to assist the governing boards of 
 94.3   the interagency early intervention committees in carrying out 
 94.4   the duties assigned in section 120.1705, subdivision 1, 
 94.5   paragraph (b); and 
 94.6      (8) carry out other duties necessary to develop and 
 94.7   implement within communities a coordinated, multidisciplinary, 
 94.8   interagency intervention service system for children with 
 94.9   disabilities. 
 94.10     (c) The committee shall consult on an on-going basis with 
 94.11  the state education advisory committee for special education and 
 94.12  the governor's interagency coordinating council in carrying out 
 94.13  its duties under this section, including assisting the governing 
 94.14  boards of the interagency early intervention committees. 
 94.15     Subd. 5.  [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 
 94.16  commissioner of children, families, and learning, based on 
 94.17  recommendations from the state interagency committee, shall 
 94.18  issue a request for proposals by January 1, 1999, for grants to 
 94.19  the governing boards of interagency intervention committees 
 94.20  under section 120.1705 or a combination of one or more counties 
 94.21  and school districts to establish five voluntary interagency 
 94.22  intervention demonstration projects.  One grant shall be used to 
 94.23  implement a coordinated service system for all eligible children 
 94.24  with disabilities up to age 5 who received services under 
 94.25  section 120.1701.  One grant shall be used to implement a 
 94.26  coordinated service system for a population of minority children 
 94.27  with disabilities from ages 12 to 22, who may have behavioral 
 94.28  problems and are in need of transitional services.  Each project 
 94.29  must be operational by July 1, 1999.  The governing boards of 
 94.30  the interagency early intervention committees and the counties 
 94.31  and school districts receiving project grants must develop 
 94.32  efficient ways to coordinate services and funding for children 
 94.33  with disabilities ages three to 22, consistent with the 
 94.34  requirements of sections 120.1703 and 120.1705 and the 
 94.35  guidelines developed by the state interagency committee under 
 94.36  this section. 
 95.1      (b) The state interagency committee shall evaluate the 
 95.2   demonstration projects and provide the evaluation results to 
 95.3   interagency early intervention committees. 
 95.4      Subd. 6.  [THIRD-PARTY LIABILITY.] Nothing in sections 
 95.5   120.1703 and 120.1705 relieves a health plan company, third 
 95.6   party administrator or other third-party payer of an obligation 
 95.7   to pay for, or changes the validity of an obligation to pay for, 
 95.8   services provided to children with disabilities ages three to 22 
 95.9   and their families. 
 95.10     Subd. 7.  [AGENCY OBLIGATION.] Nothing in sections 120.1703 
 95.11  and 120.1705 removes the obligation of the state, counties, 
 95.12  local school districts, a regional agency, or a local agency or 
 95.13  organization to comply with any federal or state law that 
 95.14  mandates responsibility for finding, assessing, delivering, 
 95.15  assuring, or paying for education or related services for 
 95.16  children with disabilities and their families. 
 95.17     Sec. 3.  [120.1705] [INTERAGENCY EARLY INTERVENTION 
 95.18  COMMITTEE RESPONSIBILITIES.] 
 95.19     Subdivision 1.  [ADDITIONAL DUTIES.] (a) The governing 
 95.20  boards of the interagency early intervention committees are 
 95.21  responsible for developing and implementing interagency policies 
 95.22  and procedures to coordinate services at the local level for 
 95.23  children with disabilities ages three to 22 under guidelines 
 95.24  established by the state interagency committee under section 
 95.25  120.1703, subdivision 4.  Consistent with the requirements in 
 95.26  sections 120.1703 and 120.1705, the governing boards of the 
 95.27  interagency early intervention committees shall organize as a 
 95.28  joint powers board under section 471.59 or enter into an 
 95.29  interagency agreement that establishes a governance structure. 
 95.30     (b) The governing board of each interagency early 
 95.31  intervention committee as defined in section 120.1701, 
 95.32  subdivision 5, paragraph (a), which may include a juvenile 
 95.33  justice professional, shall: 
 95.34     (1) identify and assist in removing state and federal 
 95.35  barriers to local coordination of services provided to children 
 95.36  with disabilities; 
 96.1      (2) identify adequate, equitable, and flexible use of 
 96.2   funding by local agencies for these services; 
 96.3      (3) implement policies that ensure a comprehensive and 
 96.4   coordinated system of all state and local agency services, 
 96.5   including multidisciplinary assessment practices, for children 
 96.6   with disabilities ages three to 22; 
 96.7      (4) use a standardized written plan for providing services 
 96.8   to a child with disabilities developed under section 120.1703; 
 96.9      (5) access the coordinated dispute resolution system and 
 96.10  incorporate the guidelines for coordinating services at the 
 96.11  local level, consistent with section 120.1703; 
 96.12     (6) use the evaluation process to measure the success of 
 96.13  the local interagency effort in improving the quality and 
 96.14  coordination of services to children with disabilities ages 
 96.15  three to 22 consistent with section 120.1703; 
 96.16     (7) develop a transitional plan for children moving from 
 96.17  the interagency early childhood intervention system under 
 96.18  section 120.1701 into the interagency intervention service 
 96.19  system under this section; 
 96.20     (8) coordinate services and facilitate payment for services 
 96.21  from public and private institutions, agencies, and health plan 
 96.22  companies; and 
 96.23     (9) share needed information consistent with state and 
 96.24  federal data practices requirements. 
 96.25     Subd. 2.  [SERVICES.] (a) Parents, physicians, other health 
 96.26  care professionals including school nurses, and education and 
 96.27  human services providers jointly must determine appropriate and 
 96.28  necessary services for eligible children with disabilities ages 
 96.29  three to 22.  The services provided to the child under this 
 96.30  section must conform with the child's standardized written 
 96.31  plan.  The governing board of an interagency early intervention 
 96.32  committee must provide those services contained in a child's 
 96.33  individual education plan and those services for which a legal 
 96.34  obligation exists. 
 96.35     (b) Nothing in section 120.1703 or 120.1705 increases or 
 96.36  decreases the obligation of the state, county, regional agency, 
 97.1   local school district, or local agency or organization to pay 
 97.2   for education, health care, or social services.  
 97.3      (c) A health plan may not exclude any medically necessary 
 97.4   covered service solely because the service is or could be 
 97.5   identified in a child's individual family service plan, 
 97.6   individual education plan, a plan established under section 504 
 97.7   of the federal Rehabilitation Act of 1973, or a student's 
 97.8   individual health plan.  This paragraph reaffirms the obligation 
 97.9   of a health plan company to provide or pay for certain medically 
 97.10  necessary covered services, and encourages a health plan company 
 97.11  to coordinate this care with any other providers of similar 
 97.12  services.  Also, a health plan company may not exclude from a 
 97.13  health plan any medically necessary covered service such as an 
 97.14  assessment or physical examination solely because the resulting 
 97.15  information may be used for an individual education plan or a 
 97.16  standardized written plan. 
 97.17     Subd. 3.  [IMPLEMENTATION TIMELINE.] By July 1, 2000, all 
 97.18  governing boards of interagency early intervention committees 
 97.19  statewide must implement a coordinated service system for 
 97.20  children up to age five with disabilities consistent with the 
 97.21  requirements of sections 120.1703 and 120.1705 and the 
 97.22  evaluation results from the demonstration projects under section 
 97.23  120.1703, subdivision 5.  Children with disabilities up to the 
 97.24  age of 22 shall be eligible for coordinated services and their 
 97.25  eligibility to receive such services under this section shall be 
 97.26  phased-in over a four-year period as follows: 
 97.27     (1) July 1, 2001, children up to age nine become eligible; 
 97.28     (2) July 1, 2002, children up to age 14 become eligible; 
 97.29  and 
 97.30     (3) July 1, 2003, children up to age 22 become eligible. 
 97.31     Sec. 4.  Minnesota Statutes 1997 Supplement, section 
 97.32  126.79, subdivision 3, is amended to read: 
 97.33     Subd. 3.  [LOCAL PROGRAMS; APPLICATION PROCEDURE; GRANT 
 97.34  AWARDS.] The commissioner shall make grants to eligible 
 97.35  applicants to establish local learn and earn programs.  Each 
 97.36  program shall operate for at least a four-year period.  A local 
 98.1   program shall select its participants from among eligible 
 98.2   students who are entering or are in the ninth grade at the 
 98.3   inception of the program.  A program may not refill a program 
 98.4   slot with another student if a student drops out of the program. 
 98.5   Students selected to participate in the program shall be 
 98.6   considered part of the program class and students who drop out 
 98.7   may return to the program at any time prior to graduation. 
 98.8      The commissioner shall establish the application procedure 
 98.9   for awarding grants under this section.  The commissioner shall 
 98.10  begin awarding grants by September 1, 1997 May 1, 1998. 
 98.11     Sec. 5.  Minnesota Statutes 1997 Supplement, section 
 98.12  126.79, subdivision 6, is amended to read: 
 98.13     Subd. 6.  [PROGRAM COMPONENTS.] Each learn and earn 
 98.14  graduation achievement program must provide the opportunity for 
 98.15  participating students to complete: 
 98.16     (1) 250 hours each year, not including regular required 
 98.17  classroom hours, in basic education competency skills; 
 98.18     (2) 250 hours each year of service to the community 
 98.19  service; and 
 98.20     (3) 250 hours each year of cultural enrichment and personal 
 98.21  development, including but not limited to adult mentoring; 
 98.22  participating in community cultural events; developing life 
 98.23  skills for use in the home, workplace, and community; and 
 98.24  learning to set goals, manage time, and make appropriate 
 98.25  behavior choices for varying social situations. 
 98.26     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
 98.27  126.79, subdivision 7, is amended to read: 
 98.28     Subd. 7.  [PROGRAM INCENTIVES.] (a) Each participating 
 98.29  student shall receive a monetary stipend for each hour spent in 
 98.30  a program component activity, plus a bonus upon completion of 
 98.31  each component during each year of the program. 
 98.32     (b) An additional amount equal to or greater than each 
 98.33  student's earned stipends and bonuses must be deposited for the 
 98.34  student in a post-secondary opportunities interest-bearing 
 98.35  account, established by the commissioner through the higher 
 98.36  education services office.  A student may, upon graduation from 
 99.1   high school, use the funds accumulated for the student toward 
 99.2   the costs, including tuition, books, and lab fees, of attending 
 99.3   a Minnesota post-secondary institution or participating in a 
 99.4   Minnesota post-secondary program in a career training program.  
 99.5   Funds accumulated for a student shall be available to the 
 99.6   student from the time the student graduates from high school 
 99.7   until ten years after the date the student entered the learn and 
 99.8   earn graduation achievement program.  After ten years, the 
 99.9   commissioner shall close the student's account and any remaining 
 99.10  money in the account shall revert to the general fund. 
 99.11     The commissioner shall establish a procedure for providing 
 99.12  the monetary stipends and bonuses to students.  The commissioner 
 99.13  may delegate this authority to grantees. 
 99.14     Sec. 7.  Minnesota Statutes 1997 Supplement, section 
 99.15  126.79, subdivision 8, is amended to read: 
 99.16     Subd. 8.  [PROGRAM COORDINATOR.] The local learn and earn 
 99.17  program coordinator must maintain contact with all participating 
 99.18  students and their families; work with the school to link 
 99.19  students with the resources needed to improve their educational 
 99.20  skills; arrange for service to the community service and 
 99.21  cultural enrichment opportunities for students; maintain records 
 99.22  regarding student completion of program component hours; and 
 99.23  perform other administrative duties as necessary.  A program 
 99.24  coordinator must, to the extent possible, agree to remain with 
 99.25  the program for four years to provide continuity of adult 
 99.26  contact to the participating students. 
 99.27     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
 99.28  126.79, subdivision 9, is amended to read: 
 99.29     Subd. 9.  [EVALUATION AND REPORTS.] The commissioner shall 
 99.30  collect information about participating students and a 
 99.31  demographically similar control group and shall evaluate the 
 99.32  short-term and long-term benefits participating students receive 
 99.33  from the learn and earn graduation achievement program, based on 
 99.34  the outcome measures specified in subdivision 2, and any other 
 99.35  criteria established by the commissioner as part of the grant 
 99.36  application process.  The evaluation must include a statistical 
100.1   comparison of students participating in the program and the 
100.2   control group.  The commissioner shall track follow 
100.3   participating students and the control group for a minimum of 
100.4   six years from the start of the program.  The commissioner shall 
100.5   submit a preliminary report to the governor and the chairs of 
100.6   the senate and house committees having jurisdiction over 
100.7   education and crime prevention by December 15, 2000 2001, 
100.8   regarding continuation of the learn and earn graduation 
100.9   achievement program for participating schools and expansion of 
100.10  the program to additional schools.  The commissioner shall 
100.11  submit a final report by December 15, 2002 2003. 
100.12     Sec. 9.  Minnesota Statutes 1997 Supplement, section 
100.13  268.665, subdivision 2, is amended to read: 
100.14     Subd. 2.  [MEMBERSHIP.] The governor's workforce 
100.15  development council is composed of 33 members appointed by the 
100.16  governor.  The members may be removed pursuant to section 
100.17  15.059.  In selecting the representatives of the council, the 
100.18  governor shall ensure that 50 percent of the members come from 
100.19  nominations provided by local workforce councils.  Local 
100.20  education representatives shall come from nominations provided 
100.21  by local education to employment partnerships.  The 32 33 
100.22  members shall represent the following sectors:  
100.23     (a) State agencies:  the following individuals shall serve 
100.24  on the council:  
100.25     (1) commissioner of the Minnesota department of economic 
100.26  security; 
100.27     (2) commissioner of the Minnesota department of children, 
100.28  families, and learning; 
100.29     (3) commissioner of the Minnesota department of human 
100.30  services; and 
100.31     (4) commissioner of the Minnesota department of trade and 
100.32  economic development. 
100.33     (b) Business and industry:  six individuals shall represent 
100.34  the business and industry sectors of Minnesota. 
100.35     (c) Organized labor:  six individuals shall represent labor 
100.36  organizations of Minnesota. 
101.1      (d) Community-based organizations:  four individuals shall 
101.2   represent community-based organizations of Minnesota.  
101.3   Community-based organizations are defined by the Job Training 
101.4   Partnership Act as private nonprofit organizations that are 
101.5   representative of communities or significant segments of 
101.6   communities and that provide job training services, agencies 
101.7   serving youth, agencies serving individuals with disabilities, 
101.8   agencies serving displaced homemakers, union-related 
101.9   organizations, and employer-related nonprofit organizations and 
101.10  organizations serving nonreservation Indians and tribal 
101.11  governments. 
101.12     (e) Education:  six individuals shall represent the 
101.13  education sector of Minnesota as follows:  
101.14     (1) one individual shall represent local public secondary 
101.15  education; 
101.16     (2) one individual shall have expertise in design and 
101.17  implementation of school-based service-learning; 
101.18     (3) one individual shall represent post-secondary 
101.19  education; 
101.20     (4) one individual shall represent secondary/post-secondary 
101.21  vocational institutions; 
101.22     (5) the chancellor of the board of trustees of the 
101.23  Minnesota state colleges and universities; and 
101.24     (6) one individual shall have expertise in agricultural 
101.25  education. 
101.26     (f) Other:  two individuals shall represent other 
101.27  constituencies including: 
101.28     (1) units of local government; and 
101.29     (2) applicable state or local programs. 
101.30     The speaker and the minority leader of the house of 
101.31  representatives shall each appoint a representative to serve as 
101.32  an ex officio member of the council.  The majority and minority 
101.33  leaders of the senate shall each appoint a senator to serve as 
101.34  an ex officio member of the council.  After January 1, 1997, the 
101.35  Minnesota director of the corporation for national service shall 
101.36  also serve as an ex officio member.  
102.1      (g) Appointment:  each member shall be appointed for a term 
102.2   of three years from the first day of January or July immediately 
102.3   following their appointment.  Elected officials shall forfeit 
102.4   their appointment if they cease to serve in elected office.  
102.5      (h) Members of the council are compensated as provided in 
102.6   section 15.059, subdivision 3. 
102.7      Sec. 10.  Minnesota Statutes 1996, section 268.665, 
102.8   subdivision 3, is amended to read: 
102.9      Subd. 3.  [PURPOSE; DUTIES.] The governor's workforce 
102.10  development council shall replace the governor's job training 
102.11  council and assume all of its requirements, duties, and 
102.12  responsibilities, under the Job Training Partnership Act, United 
102.13  States Code, title 29, section 1501, et seq.  Additionally, the 
102.14  workforce development council shall assume the following duties 
102.15  and responsibilities:  
102.16     (a) Coordinate the development, implementation, and 
102.17  evaluation of the statewide education and employment transitions 
102.18  system under section 126B.01.  Beginning January 1, 1997, the 
102.19  council shall also coordinate the development, implementation, 
102.20  and evaluation of the Minnesota youth services programs under 
102.21  sections 121.704 to 121.709, and the National and Community 
102.22  Services Act of 1993, United States Code, title 42, section 
102.23  12501, et seq.  
102.24     (b) Review the provision of services and the use of funds 
102.25  and resources under applicable federal human resource programs 
102.26  and advise the governor on methods of coordinating the provision 
102.27  of services and the use of funds and resources consistent with 
102.28  the laws and regulations governing the programs.  For purposes 
102.29  of this section, applicable federal and state human resource 
102.30  programs mean the: 
102.31     (1) Job Training Partnership Act, United States Code, title 
102.32  29, section 1501, et seq.; 
102.33     (2) Carl D. Perkins Vocational and Applied Technology 
102.34  Education Act, United States Code, title 20, section 2301, et 
102.35  seq.; 
102.36     (3) National and Community Service Act of 1993, United 
103.1   States Code, title 42, section 12501, et seq.; 
103.2      (4) Adult Education Act, United States Code, title 20, 
103.3   section 1201, et seq.; 
103.4      (5) Wagner-Peyser Act, United States Code, title 29, 
103.5   section 49; 
103.6      (6) Social Security Act, title IV, part F, (JOBS), United 
103.7   States Code, title 42, section 681, et seq.; 
103.8      (7) Food Stamp Act of 1977, United States Code, title 7, 
103.9   section 6(d)(4), Food Stamp Employment and Training Program, 
103.10  United States Code, title 7, section 2015(d)(4); 
103.11     (8) programs defined in section 268.0111, subdivisions 4 
103.12  and 5; and 
103.13     (9) School to Work Opportunity Act of 1994, Public Law 
103.14  Number 103-239.  
103.15     Additional federal and state programs and resources can be 
103.16  included within the scope of the council's duties if recommended 
103.17  by the governor after consultation with the council. 
103.18     (c) Review federal, state, and local education, 
103.19  post-secondary, job skills training, and youth employment 
103.20  programs, and make recommendations to the governor and the 
103.21  legislature for establishing an integrated seamless system for 
103.22  providing education, service-learning, and work skills 
103.23  development services to learners and workers of all ages. 
103.24     (d) Advise the governor on the development and 
103.25  implementation of statewide and local performance standards and 
103.26  measures relating to applicable federal human resource programs 
103.27  and the coordination of performance standards and measures among 
103.28  programs.  
103.29     (e) Administer Develop program guidelines and recommend 
103.30  grant approval procedures to the department of children, 
103.31  families, and learning for grants to local education and 
103.32  employment transition partnerships, including implementation 
103.33  grants under section 126B.01, grants for youth apprenticeship 
103.34  programs under section 126B.03, and youth employer grants.  
103.35  Beginning January 1, 1997, administer youthworks grants under 
103.36  sections 121.704 to 121.709; and 
104.1      (1) coordinate implementation of the education and 
104.2   employment transitions system under section 126B.01; 
104.3      (2) promote education and employment transitions programs 
104.4   and knowledge and skills of entrepreneurship among employers, 
104.5   workers, youth, and educators, and encourage employers to 
104.6   provide meaningful work-based learning opportunities; 
104.7      (3) evaluate and identify exemplary education and 
104.8   employment transitions programs and provide technical assistance 
104.9   to local partnerships to replicate the programs throughout the 
104.10  state; 
104.11     (4) establish a performance-based quality assurance system 
104.12  for consistent statewide evaluation of the performance of the 
104.13  education and employment transitions system at both the state 
104.14  and local level; 
104.15     (5) conduct an annual review of each local education and 
104.16  employment transitions partnership to ensure it adequately meets 
104.17  the quality assurance standards established as part of the state 
104.18  quality assurance system; 
104.19     (6) develop the methods to assess local partnership 
104.20  effectiveness; 
104.21     (7) annually publish a report on the findings of the 
104.22  evaluations of each local education transitions partnership; 
104.23     (8) promote knowledge and skills of entrepreneurship among 
104.24  students in kindergarten through grade 12 by sharing information 
104.25  about the ways new business development contributes to a strong 
104.26  economy. 
104.27     (f) Advise the governor on methods to evaluate applicable 
104.28  federal human resource programs.  
104.29     (g) Sponsor appropriate studies to identify human 
104.30  investment needs in Minnesota and recommend to the governor 
104.31  goals and methods for meeting those needs.  
104.32     (h) Recommend to the governor goals and methods for the 
104.33  development and coordination of a human resource system in 
104.34  Minnesota.  
104.35     (i) Examine federal and state laws, rules, and regulations 
104.36  to assess whether they present barriers to achieving the 
105.1   development of a coordinated human resource system. 
105.2      (j) Recommend to the governor and to the federal government 
105.3   changes in state or federal laws, rules, or regulations 
105.4   concerning employment and training programs that present 
105.5   barriers to achieving the development of a coordinated human 
105.6   resource system. 
105.7      (k) Recommend to the governor and to the federal government 
105.8   waivers of laws and regulations to promote coordinated service 
105.9   delivery. 
105.10     (l) Sponsor appropriate studies and prepare and recommend 
105.11  to the governor a strategic plan which details methods for 
105.12  meeting Minnesota's human investment needs and for developing 
105.13  and coordinating a state human resource system.  
105.14     Sec. 11.  Laws 1997, chapter 157, section 71, is amended to 
105.15  read: 
105.16     Sec. 71.  [SCHOOL BANK PILOT PROJECT.] 
105.17     (a) A school bank sponsored by independent school district 
105.18  No. 31, Bemidji, or by independent school district No. 508, St. 
105.19  Peter, that meets all requirements of paragraph (b) is not 
105.20  subject to Minnesota Statutes, section 47.03, subdivision 1, or 
105.21  to any other statute or rule that regulates banks, other 
105.22  financial institutions, or currency exchanges. 
105.23     (b) To qualify under paragraph (a), the school bank must: 
105.24     (1) be operated as part of a high school educational 
105.25  program and under guidelines adopted by the school board; 
105.26     (2) be advised on a regular basis by a one or more 
105.27  state-chartered or federally-chartered financial institution 
105.28  institutions, but not owned or operated by that any financial 
105.29  institution; 
105.30     (3) be located on school premises and have as customers 
105.31  only students enrolled in, or employees of, the school in which 
105.32  it is located; and 
105.33     (4) have a written commitment from the school board, 
105.34  guaranteeing reimbursement of any depositor's funds lost due to 
105.35  insolvency of the school bank. 
105.36     (c) Funds of a school bank that meets the requirements of 
106.1   this section are not school district or other public funds for 
106.2   purposes of any state law governing the use or investment of 
106.3   school district or other public funds. 
106.4      (d) The school district shall annually file with the 
106.5   commissioner of commerce a report, prepared by the students and 
106.6   teachers involved, summarizing the operation of the school bank. 
106.7      (e) This section expires June 30, 2000.  The commissioner 
106.8   of commerce shall, no later than December 15, 1999, provide a 
106.9   written report to the legislature regarding this pilot project 
106.10  and any recommended legislation regarding school banks. 
106.11     Sec. 12.  Laws 1997, First Special Session chapter 4, 
106.12  article 2, section 51, subdivision 33, is amended to read: 
106.13     Subd. 33.  [LEARN AND EARN GRADUATION ACHIEVEMENT PROGRAM.] 
106.14  For the learn and earn graduation achievement program according 
106.15  to Minnesota Statutes, section 126.79: 
106.16       $1,000,000     .....     1998
106.17       $1,000,000     .....     1999
106.18     Any balance in the first year does not cancel but is 
106.19  available in the second year. 
106.20     At least 95 percent of the appropriation must be used for 
106.21  stipends, educational awards, and program coordination.  The 
106.22  remaining five percent of the appropriation may be used for 
106.23  administrative costs. 
106.24     Sec. 13.  Laws 1997, First Special Session chapter 4, 
106.25  article 3, section 23, is amended by adding a subdivision to 
106.26  read: 
106.27     Subd. 4a.  [DESIGN AND IMPLEMENTATION GRANT.] An eligible 
106.28  lifework learning site applicant may apply for a one-time grant 
106.29  to design and implement a lifework learning facility.  The 
106.30  design and implementation grant shall not exceed $200,000 for a 
106.31  site. 
106.32     Sec. 14.  Laws 1997, First Special Session chapter 4, 
106.33  article 3, section 25, subdivision 4, is amended to read: 
106.34     Subd. 4.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
106.35  GRANTS.] For education and employment transitions program: 
106.36       $4,750,000 $4,800,000    .....      1998
107.1        $4,750,000 $4,800,000    .....      1999 
107.2      $500,000 each year is for development of MnCEPs, an 
107.3   Internet-based education and employment information system.  
107.4   These are one-time funds. 
107.5      $1,225,000 in fiscal year 1998 and $1,250,000 in fiscal 
107.6   year 1999 is for a rebate program for qualifying employers who 
107.7   employ less than 250 employees, who offer youth internships to 
107.8   educators.  An employer may apply for a rebate of up to $500 for 
107.9   each paid youth internship and each educator internship, and up 
107.10  to $3,000 for each paid youth apprenticeship.  The commissioner 
107.11  shall determine the application and payment process. 
107.12     $450,000 each year is for youth apprenticeship program 
107.13  grants. 
107.14     $225,000 each year is for youth entrepreneurship grants 
107.15  under Minnesota Statutes, section 121.72.  Of this amount, 
107.16  $25,000 each year is for the high school student 
107.17  entrepreneurship program in independent school district No. 175, 
107.18  Westbrook.  This appropriation shall be used for expenses, 
107.19  including, but not limited to, salaries, travel, seminars, 
107.20  equipment purchases, contractual expenses, and other expenses 
107.21  related to the student-run business. 
107.22     $125,000 each year is for youth employer grants under Laws 
107.23  1995, First Special Session chapter 3, article 4, section 28. 
107.24     $150,000 each year is for parent and community awareness 
107.25  training. 
107.26     $825,000 each year is for the development of career 
107.27  assessment benchmarks, lifework portfolios, industry skill 
107.28  standards, curriculum development, career academies, and career 
107.29  programs for elementary, middle school, and at-risk learners. 
107.30     $400,000 each year is for state level activities, including 
107.31  the governor's workforce council. 
107.32     $275,000 each year is for development of occupational 
107.33  information. 
107.34     $300,000 each year is for a grant to be made available to a 
107.35  county government that has established school-to-work projects 
107.36  with schools located in a city of the first class.  These grants 
108.1   must be used to expand the number of at-risk students 
108.2   participating in these school-to-work projects.  Priority must 
108.3   be given to projects that demonstrate collaboration between 
108.4   among private and public employers, collective bargaining 
108.5   representatives, school officials, and the county government and 
108.6   which prepare at-risk students for long-term employment with 
108.7   private sector employers paying a minimum of 150 percent of the 
108.8   federal poverty level for a family of four and with the majority 
108.9   of their employees in collective bargaining units. 
108.10     $250,000 each year is for agricultural school-to-work 
108.11  grants. 
108.12     $25,000 is for a grant to the Minnesota Historical Society 
108.13  for money canceled in fiscal year 1997. 
108.14     $50,000 each year is awarded to the Minnesota valley action 
108.15  council, the fiscal agent for the south central tri-county 
108.16  school-to-work partnership, to serve as a model for the state in 
108.17  demonstrating the capability of a multicounty partnership to 
108.18  develop both a resource map for sustaining all learners and an 
108.19  assessment process for employer, labor, and community 
108.20  organizations involved in the school-to-work initiative.  The 
108.21  partnership shall submit a report to the commissioner and to the 
108.22  governor's workforce development council by September 1, 1999, 
108.23  that includes the resource map, the results of the assessments, 
108.24  and models for multicounty partnerships to replicate these 
108.25  activities. 
108.26     Any balance remaining in the first year does not cancel but 
108.27  is available in the second year. 
108.28     Sec. 15.  Laws 1997, First Special Session chapter 4, 
108.29  article 9, section 11, is amended to read: 
108.30     Sec. 11.  [ADDITIONAL TECHNOLOGY REVENUE.] 
108.31     (a) For fiscal year 1998 only, the allowance in Minnesota 
108.32  Statutes, section 124A.22, subdivision 10, paragraph (a), is 
108.33  increased by: 
108.34     (1) $24 per pupil unit; or 
108.35     (2) the lesser of $25,000 or $80 per pupil unit. 
108.36     Revenue received under this section must be used according 
109.1   to Minnesota Statutes, section 124A.22, subdivision 11, clauses 
109.2   (15), (18), (19), (23), and (24). 
109.3      (b) For the purposes of paragraph (a), "pupil unit" means 
109.4   fund balance pupil unit as defined in Minnesota Statutes, 
109.5   section 124A.26, subdivision 1, excluding pupil units 
109.6   attributable to shared time pupils. 
109.7      Sec. 16.  [DEADLINE.] 
109.8      The governor shall convene the interagency committee 
109.9   required by Minnesota Statutes, section 120.1703, subdivision 4, 
109.10  by July 1, 1998. 
109.11     Sec. 17.  [APPROPRIATIONS.] 
109.12     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
109.13  LEARNING.] The sums indicated in this section are appropriated 
109.14  from the general fund to the department of children, families, 
109.15  and learning for the fiscal years designated.  
109.16     Subd. 2.  [INTERVENTION DEMONSTRATION PROJECTS.] For 
109.17  establishing five voluntary interagency intervention 
109.18  demonstration projects under section 2, subdivision 5: 
109.19       $  250,000     .....     1999 
109.20     The commissioner shall allocate the grant awards according 
109.21  to the implementation needs of the grant recipients. 
109.22     Subd. 3.  [DESIGN AND IMPLEMENTATION GRANT.] For one-time 
109.23  grants to design and implement a lifework learning facility 
109.24  under section 13: 
109.25       $  450,000     .....     1999 
109.26     In awarding the grants, priority shall be given to 
109.27  applicants who are ready to implement a lifework learning 
109.28  facility. 
109.29     Sec. 18.  [REPEALER.] 
109.30     Laws 1993, chapter 146, article 5, section 20, as amended 
109.31  by Laws 1997, First Special Session chapter 4, article 3, 
109.32  section 20, is repealed. 
109.33     Sec. 19.  [EFFECTIVE DATES.] 
109.34     (a) Sections 2 to 4, 6, 11 to 14, and 16 are effective the 
109.35  day following final enactment. 
109.36     (b) Section 15 is effective for revenue for fiscal year 
110.1   1998. 
110.2                              ARTICLE 4 
110.3                     FACILITIES AND ORGANIZATION 
110.4      Section 1.  Minnesota Statutes 1997 Supplement, section 
110.5   121.15, subdivision 6, is amended to read: 
110.6      Subd. 6.  [REVIEW AND COMMENT.] A school district, a 
110.7   special education cooperative, or a cooperative unit of 
110.8   government, as defined in section 123.35, subdivision 19b, 
110.9   paragraph (d), must not initiate an installment contract for 
110.10  purchase or a lease agreement, hold a referendum for bonds, nor 
110.11  solicit bids for new construction, expansion, or remodeling of 
110.12  an educational facility that requires an expenditure in excess 
110.13  of $400,000 per school site prior to review and comment by the 
110.14  commissioner.  The commissioner may exempt a facility 
110.15  maintenance project funded with general education aid and levy 
110.16  or health and safety revenue from this provision after reviewing 
110.17  a written request from a school district describing the scope of 
110.18  work.  A school board shall not separate portions of a single 
110.19  project into components to avoid the requirements of this 
110.20  subdivision. 
110.21     Sec. 2.  Minnesota Statutes 1996, section 124.755, 
110.22  subdivision 1, is amended to read: 
110.23     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
110.24  section, the term "debt obligation" means either: 
110.25     (1) a tax or aid anticipation certificate of indebtedness; 
110.26     (2) a certificate of participation issued under section 
110.27  124.91, subdivision 7; or 
110.28     (3) a general obligation bond.  
110.29     Sec. 3.  Minnesota Statutes 1996, section 124.83, 
110.30  subdivision 8, is amended to read: 
110.31     Subd. 8.  [HEALTH, SAFETY, AND ENVIRONMENTAL MANAGEMENT 
110.32  COST.] (a) A district's cost for health, safety, and 
110.33  environmental management is limited to the lesser of:  
110.34     (1) actual cost to implement their plan; or 
110.35     (2) an amount determined by the commissioner, based on 
110.36  enrollment, building age, and size. 
111.1      (b) Effective July 1, 1993, The department of children, 
111.2   families, and learning may contract with regional service 
111.3   organizations, private contractors, Minnesota safety council, or 
111.4   state agencies to provide management assistance to school 
111.5   districts for health and safety capital projects.  Management 
111.6   assistance is the development of written programs for the 
111.7   identification, recognition and control of hazards, and 
111.8   prioritization and scheduling of district health and safety 
111.9   capital projects. 
111.10     (c) Notwithstanding paragraph (b), the department may 
111.11  approve revenue, up to the limit defined in paragraph (a) for 
111.12  districts having an approved health, safety, and environmental 
111.13  management plan that uses district staff to accomplish 
111.14  coordination and provided services. 
111.15     Sec. 4.  Minnesota Statutes 1997 Supplement, section 
111.16  124.91, subdivision 1, is amended to read: 
111.17     Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
111.18  district finds it economically advantageous to rent or lease a 
111.19  building or land for any instructional purposes or for school 
111.20  storage or furniture repair, and it determines that the 
111.21  operating capital revenue authorized under section 124A.22, 
111.22  subdivision 10, is insufficient for this purpose, it may apply 
111.23  to the commissioner for permission to make an additional capital 
111.24  expenditure levy for this purpose.  An application for 
111.25  permission to levy under this subdivision must contain financial 
111.26  justification for the proposed levy, the terms and conditions of 
111.27  the proposed lease, and a description of the space to be leased 
111.28  and its proposed use.  
111.29     (b) The criteria for approval of applications to levy under 
111.30  this subdivision must include:  the reasonableness of the price, 
111.31  the appropriateness of the space to the proposed activity, the 
111.32  feasibility of transporting pupils to the leased building or 
111.33  land, conformity of the lease to the laws and rules of the state 
111.34  of Minnesota, and the appropriateness of the proposed lease to 
111.35  the space needs and the financial condition of the district.  
111.36  The commissioner must not authorize a levy under this 
112.1   subdivision in an amount greater than the cost to the district 
112.2   of renting or leasing a building or land for approved purposes.  
112.3   The proceeds of this levy must not be used for custodial or 
112.4   other maintenance services.  A district may not levy under this 
112.5   subdivision for the purpose of leasing or renting a 
112.6   district-owned building or site to itself. 
112.7      (c) For agreements finalized after July 1, 1997, a district 
112.8   may not levy under this subdivision for the purpose of leasing:  
112.9   (1) a newly constructed building used primarily for regular 
112.10  kindergarten, elementary, or secondary instruction; or (2) a 
112.11  newly constructed building addition or additions used primarily 
112.12  for regular kindergarten, elementary, or secondary instruction 
112.13  that contains more than 20 percent of the square footage of the 
112.14  previously existing building. 
112.15     (d) The total levy under this subdivision for a district 
112.16  for any year must not exceed $100 times the actual pupil units 
112.17  for the fiscal year to which the levy is attributable. 
112.18     (e) For agreements for which a review and comment have been 
112.19  submitted to the department of children, families, and learning 
112.20  after April 1, 1998, the term "instructional purpose" as used in 
112.21  this subdivision excludes expenditures on stadiums. 
112.22     Sec. 5.  Minnesota Statutes 1997 Supplement, section 
112.23  124.91, subdivision 5, is amended to read: 
112.24     Subd. 5.  [INTERACTIVE TELEVISION.] (a) A school district 
112.25  with its central administrative office located within economic 
112.26  development region one, two, three, four, five, six, seven, 
112.27  eight, nine, and ten may apply to the commissioner of children, 
112.28  families, and learning for ITV revenue up to the greater of .5 
112.29  percent of the adjusted net tax capacity of the district or 
112.30  $25,000.  Eligible interactive television expenditures include 
112.31  the construction, maintenance, and lease costs of an interactive 
112.32  television system for instructional purposes.  An eligible 
112.33  school district that has completed the construction of its 
112.34  interactive television system may also purchase computer 
112.35  hardware and software used primarily for instructional purposes 
112.36  and access to the Internet provided that its total expenditures 
113.1   for interactive television maintenance and lease costs and for 
113.2   computer hardware and software under this subdivision do not 
113.3   exceed its interactive television revenue for fiscal year 1998.  
113.4   The approval by the commissioner of children, families, and 
113.5   learning and the application procedures set forth in subdivision 
113.6   1 shall apply to the revenue in this subdivision.  In granting 
113.7   the approval, the commissioner must consider whether the 
113.8   district is maximizing efficiency through peak use and off-peak 
113.9   use pricing structures. 
113.10     (b) To obtain ITV revenue, a district may levy an amount 
113.11  not to exceed the district's ITV revenue times the lesser of one 
113.12  or the ratio of: 
113.13     (1) the quotient derived by dividing the adjusted net tax 
113.14  capacity of the district for the year before the year the levy 
113.15  is certified by the actual pupil units in the district for the 
113.16  year to which the levy is attributable; to 
113.17     (2) 100 percent of the equalizing factor as defined in 
113.18  section 124A.02, subdivision 8, for the year to which the levy 
113.19  is attributable $10,000. 
113.20     (c) A district's ITV aid is the difference between its ITV 
113.21  revenue and the ITV levy. 
113.22     (d) The revenue in the first year after reorganization for 
113.23  a district that has reorganized under section 122.22, 122.23, or 
113.24  122.241 to 122.247 shall be the greater of: 
113.25     (1) the revenue computed for the reorganized district under 
113.26  paragraph (a), or 
113.27     (2)(i) for two districts that reorganized, 75 percent of 
113.28  the revenue computed as if the districts involved in the 
113.29  reorganization were separate, or 
113.30     (ii) for three or more districts that reorganized, 50 
113.31  percent of the revenue computed as if the districts involved in 
113.32  the reorganization were separate. 
113.33     (e) The revenue in paragraph (d) is increased by the 
113.34  difference between the initial revenue and ITV lease costs for 
113.35  leases that had been entered into by the preexisting districts 
113.36  on the effective date of the consolidation or combination and 
114.1   with a term not exceeding ten years.  This increased revenue is 
114.2   only available for the remaining term of the lease.  However, in 
114.3   no case shall the revenue exceed the amount available had the 
114.4   preexisting districts received revenue separately. 
114.5      (f) Effective for fiscal year 2000, the revenue under this 
114.6   section shall be 75 percent of the amount determined in 
114.7   paragraph (a); for fiscal year 2001, 50 percent of the amount in 
114.8   paragraph (a); and for fiscal year 2002, 25 percent of the 
114.9   amount in paragraph (a). 
114.10     (g) This section expires effective for revenue for fiscal 
114.11  year 2003, or when leases in existence on the effective date of 
114.12  Laws 1997, First Special Session chapter 4, expire.  
114.13     Sec. 6.  Minnesota Statutes 1996, section 124.91, 
114.14  subdivision 6, is amended to read: 
114.15     Subd. 6.  [ENERGY CONSERVATION.] For loans approved before 
114.16  March 1, 1998, the school district may annually levy include as 
114.17  revenue under section 124.95, without the approval of a majority 
114.18  of the voters in the district, an amount sufficient to repay the 
114.19  annual principal and interest of the loan made pursuant to 
114.20  sections 216C.37 and 298.292 to 298.298.  For energy loans 
114.21  approved after March 1, 1998, school districts must annually 
114.22  transfer from the general fund to the debt redemption fund the 
114.23  amount sufficient to pay interest and principal on the loans.  
114.24     Sec. 7.  Minnesota Statutes 1996, section 124.95, 
114.25  subdivision 6, is amended to read: 
114.26     Subd. 6.  [DEBT SERVICE EQUALIZATION AID PAYMENT SCHEDULE.] 
114.27  Debt service equalization aid must be paid as follows:  30 
114.28  percent before September 15, 30 percent before December 15, 25 
114.29  30 percent before March 15, and a final payment of 15 10 percent 
114.30  by July 15 of the subsequent fiscal year. 
114.31     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
114.32  124A.22, subdivision 11, is amended to read: 
114.33     Subd. 11.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
114.34  operating capital revenue may be used only for the following 
114.35  purposes: 
114.36     (1) to acquire land for school purposes; 
115.1      (2) to acquire or construct buildings for school purposes, 
115.2   up to $400,000; 
115.3      (3) to rent or lease buildings, including the costs of 
115.4   building repair or improvement that are part of a lease 
115.5   agreement; 
115.6      (4) to improve and repair school sites and buildings, and 
115.7   equip or reequip school buildings with permanent attached 
115.8   fixtures; 
115.9      (5) for a surplus school building that is used 
115.10  substantially for a public nonschool purpose; 
115.11     (6) to eliminate barriers or increase access to school 
115.12  buildings by individuals with a disability; 
115.13     (7) to bring school buildings into compliance with the 
115.14  uniform fire code adopted according to chapter 299F; 
115.15     (8) to remove asbestos from school buildings, encapsulate 
115.16  asbestos, or make asbestos-related repairs; 
115.17     (9) to clean up and dispose of polychlorinated biphenyls 
115.18  found in school buildings; 
115.19     (10) to clean up, remove, dispose of, and make repairs 
115.20  related to storing heating fuel or transportation fuels such as 
115.21  alcohol, gasoline, fuel oil, and special fuel, as defined in 
115.22  section 296.01; 
115.23     (11) for energy audits for school buildings and to modify 
115.24  buildings if the audit indicates the cost of the modification 
115.25  can be recovered within ten years; 
115.26     (12) to improve buildings that are leased according to 
115.27  section 123.36, subdivision 10; 
115.28     (13) to pay special assessments levied against school 
115.29  property but not to pay assessments for service charges; 
115.30     (14) to pay principal and interest on state loans for 
115.31  energy conservation according to section 216C.37 or loans made 
115.32  under the Northeast Minnesota Economic Protection Trust Fund Act 
115.33  according to sections 298.292 to 298.298; 
115.34     (15) to purchase or lease interactive telecommunications 
115.35  equipment; 
115.36     (16) by school board resolution, to transfer money into the 
116.1   debt redemption fund to:  (i) pay the amounts needed to meet, 
116.2   when due, principal and interest payments on certain obligations 
116.3   issued according to chapter 475; or (ii) pay principal and 
116.4   interest on debt service loans or capital loans according to 
116.5   section 124.44; 
116.6      (17) to pay capital expenditure equipment-related 
116.7   assessments of any entity formed under a cooperative agreement 
116.8   between two or more districts; 
116.9      (18) to purchase or lease computers and related materials, 
116.10  copying machines, telecommunications equipment, and other 
116.11  noninstructional equipment; 
116.12     (19) to purchase or lease assistive technology or equipment 
116.13  for instructional programs; 
116.14     (20) to purchase textbooks; 
116.15     (21) to purchase new and replacement library books; 
116.16     (22) to purchase vehicles; 
116.17     (23) to purchase or lease telecommunications equipment, 
116.18  computers, and related equipment for integrated information 
116.19  management systems for: 
116.20     (i) managing and reporting learner outcome information for 
116.21  all students under a results-oriented graduation rule; 
116.22     (ii) managing student assessment, services, and achievement 
116.23  information required for students with individual education 
116.24  plans; and 
116.25     (iii) other classroom information management needs; and 
116.26     (24) to pay personnel costs directly related to the 
116.27  acquisition, operation, and maintenance of telecommunications 
116.28  systems, computers, related equipment, and network and 
116.29  applications software. 
116.30     Sec. 9.  Laws 1997, First Special Session chapter 4, 
116.31  article 4, section 34, is amended to read: 
116.32     Sec. 34.  [FISCAL YEAR YEARS 1998 AND 1999 DECLINING PUPIL 
116.33  UNIT AID.] 
116.34     For fiscal year years 1998 and 1999 only, a school district 
116.35  with one or more school buildings closed during the 1996-1997 
116.36  school year due to flooding is eligible for declining pupil unit 
117.1   aid equal to the greater of zero or the product of the general 
117.2   education formula allowance for fiscal year 1998 times the 
117.3   difference between the district's actual pupil units for the 
117.4   1996-1997 school year and the district's actual pupil units for 
117.5   the 1997-1998 school year. 
117.6      Sec. 10.  Laws 1997, First Special Session chapter 4, 
117.7   article 4, section 35, subdivision 9, is amended to read: 
117.8      Subd. 9.  [FLOOD LOSSES.] (a) For grants and loans to 
117.9   independent school district Nos. 2854, Ada-Borup; 2176, 
117.10  Warren-Alvarado-Oslo; 846, Breckenridge; 595, East Grand Forks; 
117.11  and other districts affected by the 1997 floods for expenses 
117.12  associated with the floods not covered by insurance or state or 
117.13  federal disaster relief: 
117.14       $4,700,000 $14,775,000    .....     1998
117.15     (b) The commissioner shall award grants and loans to school 
117.16  districts to cover expenses associated with the 1997 floods.  
117.17  The grants or loans may be for capital losses or for 
117.18  extraordinary operating expenses resulting from the floods.  
117.19  School districts shall repay any loan or grant amounts to the 
117.20  department if those amounts are otherwise funded from other 
117.21  sources.  The commissioner shall establish the terms and 
117.22  conditions of any loans and may request any necessary 
117.23  information from school districts before awarding a grant or 
117.24  loan.  This appropriation shall also be used to fund aid under 
117.25  sections 33 and 34. 
117.26     (c) Of the amount in paragraph (a), $1,400,000 is for 
117.27  special school district No. 1, Minneapolis, for Edison high 
117.28  school; $1,250,000 is for independent school district No. 2854, 
117.29  Ada-Borup; and $7,425,000 is for independent school district No. 
117.30  595, East Grand Forks. Part of the appropriation to independent 
117.31  school district No. 595, East Grand Forks, may be used to 
117.32  convert the Valley elementary school into a facility for 
117.33  community, early childhood, and senior programs. 
117.34     (d) The commissioner shall determine a schedule for 
117.35  payments to the school districts. 
117.36     (e) This appropriation is available until June 30, 1999. 
118.1      Sec. 11.  [JOINT FACILITY.] 
118.2      Notwithstanding Minnesota Statutes, section 471.19, 
118.3   independent school district No. 277, Westonka, may expend bond 
118.4   funds for building and remodeling a facility to be operated and 
118.5   maintained under a joint-powers agreement with other 
118.6   governmental entities for joint use by the school district and 
118.7   local community agencies.  The school district is not eligible 
118.8   for debt service equalization on the bonds associated with the 
118.9   joint facility. 
118.10     Sec. 12.  [ENHANCED PAIRING COOPERATION AND COMBINATION 
118.11  AID.] 
118.12     Subdivision 1.  [DISTRICT ELIGIBILITY.] A group of 
118.13  districts participating in an enhanced pairing agreement under 
118.14  Laws 1995, First Special Session chapter 3, article 6, section 
118.15  17, is eligible for a grant for cooperation and combination. 
118.16     Subd. 2.  [AID AMOUNT.] A district that is participating in 
118.17  an enhanced pairing agreement is eligible for consolidation 
118.18  transition revenue under Minnesota Statutes, section 124.2726 
118.19  and is also eligible for additional state aid equal to $100 
118.20  times the number of pupil units enrolled in an enhanced paired 
118.21  district in the year prior to consolidation. 
118.22     Subd. 3.  [AID USES.] A district receiving aid under this 
118.23  section must use the aid consistent with the purposes listed 
118.24  under Minnesota Statutes, section 124.2725, subdivision 11, or 
118.25  other purposes related to combination of the individual 
118.26  districts as determined by the school board.  If, after receipt 
118.27  of state aid under this section the districts choose not to 
118.28  combine and receive aid under Minnesota Statutes, section 
118.29  124.2726, the commissioner of children, families, and learning 
118.30  must recover aid equal to $25 times the number of pupil units in 
118.31  the enhanced paired district. 
118.32     Sec. 13.  [LEASE LEVY FOR ADMINISTRATIVE SPACE; SOUTH ST. 
118.33  PAUL AND MANKATO.] 
118.34     Each year, special school district No. 6, South St. Paul, 
118.35  and independent school district No. 77, Mankato, may levy the 
118.36  amounts necessary to rent or lease administrative space so that 
119.1   space previously used for administrative purposes may be used 
119.2   for instructional purposes. 
119.3      Sec. 14.  [USE OF BOND PROCEEDS; ST. CLOUD.] 
119.4   Notwithstanding Minnesota Statutes, section 475.58, subdivision 
119.5   4, independent school district No. 742, St. Cloud, upon passage 
119.6   of a written resolution specifying the amount and purpose of the 
119.7   expenditure, may expend up to $800,000 from its building 
119.8   construction fund to purchase a building and site to be used for 
119.9   community education purposes. 
119.10     Sec. 15.  [BONDING AUTHORIZATION.] 
119.11     To provide funds for the acquisition or betterment of 
119.12  school facilities, independent school district No. 625, St. 
119.13  Paul, may by two-thirds majority vote of all the members of the 
119.14  board of directors issue general obligation bonds in one or more 
119.15  series in calendar years 1998 to 2002, both inclusive, as 
119.16  provided in this section.  The aggregate principal amount of any 
119.17  bonds issued under this section for each calendar year must not 
119.18  exceed $15,000,000.  Issuance of the bonds is not subject to 
119.19  Minnesota Statutes, section 475.58 or 475.59.  The bonds must 
119.20  otherwise be issued as provided in Minnesota Statutes, chapter 
119.21  475.  The authority to issue bonds under this section is in 
119.22  addition to any bonding authority authorized by Minnesota 
119.23  Statutes, chapter 124, or other law.  The amount of bonding 
119.24  authority authorized under this section must be disregarded in 
119.25  calculating the bonding limit of Minnesota Statutes, chapter 
119.26  124, or any other law other than Minnesota Statutes, section 
119.27  475.53, subdivision 4. 
119.28     Sec. 16.  [TAX LEVY FOR DEBT SERVICE.] 
119.29     To pay the principal of and interest on bonds issued under 
119.30  section 13, independent school district No. 625, St. Paul, must 
119.31  levy a tax annually in an amount sufficient under Minnesota 
119.32  Statutes, section 475.61, subdivisions 1 and 3, to pay the 
119.33  principal of and interest on the bonds.  The tax authorized 
119.34  under this section is in addition to the taxes authorized to be 
119.35  levied under Minnesota Statutes, chapter 124A or 275, or other 
119.36  law. 
120.1      Sec. 17.  [MOUNTAIN IRON-BUHL; BONDS.] 
120.2      Subdivision 1.  [AUTHORIZATION.] Independent school 
120.3   district No. 712, Mountain Iron-Buhl, may issue bonds in an 
120.4   aggregate principal amount not exceeding $5,300,000 in addition 
120.5   to any bonds already issued or authorized, to provide funds to 
120.6   design, construct, equip, furnish, remodel, rehabilitate, and 
120.7   acquire land for school facilities and buildings, or abate, 
120.8   remove, and dispose of asbestos, polychlorinated biphenyls, or 
120.9   petroleum as defined in Minnesota Statutes, section 115C.02, and 
120.10  make repairs related to the abatement, removal, or disposal of 
120.11  these substances.  Independent school district No. 712, Mountain 
120.12  Iron-Buhl, may spend the proceeds of the bond sale for those 
120.13  purposes and any architect, engineer, and legal fees incidental 
120.14  to those purposes or the sale.  The bond shall be authorized, 
120.15  issued, sold, executed, and delivered in the manner provided by 
120.16  Minnesota Statutes, chapter 475, including submission of the 
120.17  proposition to the electors under Minnesota Statutes, section 
120.18  475.58.  After authorization by the electors under Minnesota 
120.19  Statutes, section 475.58, a resolution of the board levying 
120.20  taxes for the payment of bonds and interest on them and pledging 
120.21  the proceeds of the levies for the payment of the bonds and 
120.22  interest on them shall be deemed to be in compliance with the 
120.23  provisions of Minnesota Statutes, chapter 475, with respect to 
120.24  the levying of taxes for their payment. 
120.25     Subd. 2.  [APPROPRIATION.] There is annually appropriated 
120.26  from the distribution of taconite production tax revenues to the 
120.27  taconite environmental protection fund pursuant to Minnesota 
120.28  Statutes, section 298.28, subdivision 11, and to the northeast 
120.29  Minnesota economic protection trust pursuant to Minnesota 
120.30  Statutes, section 298.28, subdivisions 9 and 11, in equal 
120.31  shares, an amount sufficient to pay when due 80 percent of the 
120.32  principal and interest on the bonds issued pursuant to 
120.33  subdivision 1.  If the annual distribution to the northeast 
120.34  Minnesota economic protection trust is insufficient to pay its 
120.35  share after fulfilling any obligations of the trust under 
120.36  Minnesota Statutes, section 298.225 or 298.293, the deficiency 
121.1   shall be appropriated from the taconite environmental protection 
121.2   fund. 
121.3      Subd. 3.  [DISTRICT OBLIGATIONS.] Bonds issued under 
121.4   authority of this section shall be the general obligations of 
121.5   the school district, for which its full faith and credit and 
121.6   unlimited taxing powers shall be pledged.  If there are any 
121.7   deficiencies in the amount received pursuant to subdivision 2, 
121.8   they shall be made good by general levies, not subject to limit, 
121.9   on all taxable properties in the district in accordance with 
121.10  Minnesota Statutes, section 475.64.  If any deficiency levies 
121.11  are necessary, the school board may effect a temporary loan or 
121.12  loans on certificates of indebtedness issued in anticipation of 
121.13  them to meet payments of principal or interest on the bonds due 
121.14  or about to become due. 
121.15     Subd. 4.  [DISTRICT LEVY.] The school board shall by 
121.16  resolution levy on all property in the school district subject 
121.17  to the general ad valorem school tax levies, and not subject to 
121.18  taxation under Minnesota Statutes, sections 298.23 to 298.28, a 
121.19  direct annual ad valorem tax for each year of the term of the 
121.20  bonds in amounts that, if collected in full, will produce the 
121.21  amounts needed to meet when due 20 percent of the principal and 
121.22  interest payments on the bonds.  A copy of the resolution shall 
121.23  be filed, and the necessary taxes shall be extended, assessed, 
121.24  collected, and remitted in accordance with Minnesota Statutes, 
121.25  section 475.61. 
121.26     Subd. 5.  [LEVY LIMITATIONS.] Taxes levied pursuant to this 
121.27  section shall be disregarded in the calculation of any other tax 
121.28  levies or limits on tax levies provided by other law. 
121.29     Subd. 6.  [BONDING LIMITATIONS.] Bonds may be issued under 
121.30  authority of this section notwithstanding any limitations upon 
121.31  the indebtedness of a district, and their amounts shall not be 
121.32  included in computing the indebtedness of a district for any 
121.33  purpose, including the issuance of subsequent bonds and the 
121.34  incurring of subsequent indebtedness. 
121.35     Subd. 7.  [TERMINATION OF APPROPRIATION.] The appropriation 
121.36  authorized in subdivision 2 shall terminate upon payment or 
122.1   maturity of the last of those bonds. 
122.2      Subd. 8.  [BOND ISSUE REQUIREMENT.] No bonds may be issued 
122.3   under this section after March 1, 2000, unless they are issued 
122.4   under a contract in effect on or before March 1, 2000. 
122.5      Subd. 9.  [LOCAL APPROVAL.] This section is effective for 
122.6   independent school district No. 712, Mountain Iron-Buhl, the day 
122.7   after its governing body complies with Minnesota Statutes, 
122.8   section 645.021, subdivision 3. 
122.9      Sec. 18.  [BONDS PAID FROM TACONITE PRODUCTION TAX 
122.10  REVENUES.] 
122.11     Subdivision 1.  [REFUNDING BONDS.] The appropriation of 
122.12  funds from the distribution of taconite production tax revenues 
122.13  to the taconite environmental protection tax fund and the 
122.14  northeast Minnesota economic protection fund made by Laws 1988, 
122.15  chapter 718, article 7, sections 62 and 63; Laws 1989, chapter 
122.16  329, article 5, section 20; Laws 1990, chapter 604, article 8, 
122.17  section 13; Laws 1992, chapter 499, article 5, section 29; and 
122.18  Laws 1996, chapter 412, article 5, sections 18 to 20; and by 
122.19  section 16, shall continue to apply to bonds issued under 
122.20  Minnesota Statutes, chapter 475, to refund bonds originally 
122.21  issued pursuant to those chapters. 
122.22     Subd. 2.  [LOCAL PAYMENTS.] School districts that are 
122.23  required in Laws 1988, chapter 718, article 7, sections 62 and 
122.24  63; Laws 1989, chapter 329, article 5, section 20; Laws 1990, 
122.25  chapter 604, article 8, section 13; Laws 1992, chapter 499, 
122.26  article 5, section 29; and sections 18 to 20, to impose levies 
122.27  to pay debt service on the bonds issued under those provisions 
122.28  to the extent the principal and interest on the bonds is not 
122.29  paid by distributions from the taconite environmental protection 
122.30  fund and the northeast Minnesota economic protection trust, may 
122.31  pay their portion of the principal and interest from any funds 
122.32  available to them.  To the extent a school district uses funds 
122.33  other than the proceeds of a property tax levy to pay its share 
122.34  of the principal and interest on the bonds, the requirement to 
122.35  impose a property tax to pay the local share does not apply to 
122.36  the school district. 
123.1      Sec. 19.  [HEALTH AND SAFETY REVENUE; MOUNDS VIEW.] (a) 
123.2   Upon approval of the commissioner of children, families, and 
123.3   learning, and notwithstanding Minnesota Statutes, section 
123.4   124.83, subdivision 6, independent school district No. 621, 
123.5   Mounds View, is authorized to use up to $300,000 of its health 
123.6   and safety revenue to replace portable classrooms with new 
123.7   construction of classrooms. 
123.8      (b) The department of children, families, and learning 
123.9   shall approve the revenue use under paragraph (a) only after the 
123.10  district has demonstrated to the commissioner's satisfaction 
123.11  that: 
123.12     (1) mold has rendered the portable classrooms 
123.13  uninhabitable; 
123.14     (2) Island Lake elementary school could not receive an 
123.15  occupancy permit from local building code officials; and 
123.16     (3) the timing of the damage to Island Lake elementary 
123.17  school portables presented a hardship to the school by leaving 
123.18  it short by two classrooms. 
123.19     Sec. 20.  [HEALTH AND SAFETY; EVELETH-GILBERT.] 
123.20     Notwithstanding any law to the contrary, independent school 
123.21  district No. 2154, Eveleth-Gilbert, may include in its health 
123.22  and safety program the amounts necessary to make health and 
123.23  safety improvements to an ice arena located within the district 
123.24  boundaries.  The total amount of revenue approved for this 
123.25  purpose shall not exceed $300,000. 
123.26     Sec. 21.  [APPROPRIATION.] 
123.27     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
123.28  LEARNING.] The sums indicated in this section are appropriated 
123.29  from the general fund to the department of children, families, 
123.30  and learning for the fiscal years designated.  
123.31     Subd. 2.  [MONTICELLO.] For a grant to independent school 
123.32  district No. 882, Monticello, for losses related to summer 
123.33  storms in 1997: 
123.34       $  100,000     .....     1998 
123.35     This appropriation is available until June 30, 1999. 
123.36     Subd. 3.  [CARLTON PLANNING GRANT.] For a grant to 
124.1   independent school district No. 93, Carlton, to develop a plan 
124.2   to coordinate district buildings and services: 
124.3        $   10,000     .....     1999 
124.4      The school district shall collaborate with the city of 
124.5   Carlton and Carlton county in developing the plan. 
124.6      Subd. 4.  [CALEDONIA PLANNING GRANT.] (a) For a grant to 
124.7   perform a management assistance study for independent school 
124.8   district No. 299, Caledonia: 
124.9        $   40,000     .....     1999 
124.10     (b) The study shall include an analysis of facility needs, 
124.11  enrollment trends, and instructional opportunities available to 
124.12  pupils of independent school district No. 299, Caledonia.  The 
124.13  department may consult with neighboring school districts, as 
124.14  appropriate.  The department shall complete the management 
124.15  assistance study by December 31, 1998. 
124.16     (c) This appropriation is available until June 30, 1999. 
124.17     Subd. 5.  [COORDINATED FACILITIES PLANS.] For grants for 
124.18  coordinated facilities plans: 
124.19       $  550,000     .....     1999 
124.20     Of this amount, $200,000 is for independent school district 
124.21  No. 2135, Maple River, $150,000 is for independent school 
124.22  district No. 2184, Luverne, $100,000 is for independent school 
124.23  district No. 238, Mabel-Canton, and $100,000 is for independent 
124.24  school district No. 534, Stewartville.  The grants shall be used 
124.25  to examine and coordinate the districts' building needs.  Each 
124.26  district must evaluate how the current use of its facilities is 
124.27  affecting its educational services and examine cost efficiencies 
124.28  that may result from a coordinated facilities plan.  The grants 
124.29  may be used for operating purposes, transportation purposes, or 
124.30  facilities purposes that lead to greater program efficiencies. 
124.31     Subd. 6.  [ENHANCED PAIRING COMBINATION AID.] For a grant 
124.32  to a group of school districts participating in the enhanced 
124.33  pairing program that intend to combine into a single school 
124.34  district: 
124.35       $  135,000     .....     1999 
124.36     Sec. 22.  [EFFECTIVE DATES.] 
125.1      (a) Section 2 is effective retroactively for revenue for 
125.2   fiscal year 1997. 
125.3      (b) Section 4 is effective retroactively to April 1, 1998. 
125.4      (c) Section 6 is effective retroactively to March 1, 1998. 
125.5      (d) Sections 10 and 14 are effective the day following 
125.6   final enactment. 
125.7      (e) Sections 15 and 16 are effective the day after the 
125.8   governing body of independent school district No. 625, St. Paul, 
125.9   complies with Minnesota Statutes, section 645.021, subdivision 3.
125.10     (f) Section 21, subdivision 2, is effective the day 
125.11  following final enactment. 
125.12                             ARTICLE 5 
125.13               POLICIES PROMOTING ACADEMIC EXCELLENCE 
125.14     Section 1.  Minnesota Statutes 1996, section 43A.17, 
125.15  subdivision 9, is amended to read: 
125.16     Subd. 9.  [POLITICAL SUBDIVISION COMPENSATION LIMIT.] The 
125.17  salary and the value of all other forms of compensation of a 
125.18  person employed by a statutory or home rule charter city, 
125.19  county, town, school district, metropolitan or regional agency, 
125.20  or other political subdivision of this state excluding a school 
125.21  district, or employed under section 422A.03, may not exceed 95 
125.22  percent of the salary of the governor as set under section 
125.23  15A.082, except as provided in this subdivision.  Deferred 
125.24  compensation and payroll allocations to purchase an individual 
125.25  annuity contract for an employee are included in determining the 
125.26  employee's salary.  Other forms of compensation which shall be 
125.27  included to determine an employee's total compensation are all 
125.28  other direct and indirect items of compensation which are not 
125.29  specifically excluded by this subdivision.  Other forms of 
125.30  compensation which shall not be included in a determination of 
125.31  an employee's total compensation for the purposes of this 
125.32  subdivision are: 
125.33     (1) employee benefits that are also provided for the 
125.34  majority of all other full-time employees of the political 
125.35  subdivision, vacation and sick leave allowances, health and 
125.36  dental insurance, disability insurance, term life insurance, and 
126.1   pension benefits or like benefits the cost of which is borne by 
126.2   the employee or which is not subject to tax as income under the 
126.3   Internal Revenue Code of 1986; 
126.4      (2) dues paid to organizations that are of a civic, 
126.5   professional, educational, or governmental nature; and 
126.6      (3) reimbursement for actual expenses incurred by the 
126.7   employee which the governing body determines to be directly 
126.8   related to the performance of job responsibilities, including 
126.9   any relocation expenses paid during the initial year of 
126.10  employment. 
126.11     The value of other forms of compensation shall be the 
126.12  annual cost to the political subdivision for the provision of 
126.13  the compensation.  The salary of a medical doctor or doctor of 
126.14  osteopathy occupying a position that the governing body of the 
126.15  political subdivision has determined requires an M.D. or D.O. 
126.16  degree is excluded from the limitation in this subdivision.  The 
126.17  commissioner may increase the limitation in this subdivision for 
126.18  a position that the commissioner has determined requires special 
126.19  expertise necessitating a higher salary to attract or retain a 
126.20  qualified person.  The commissioner shall review each proposed 
126.21  increase giving due consideration to salary rates paid to other 
126.22  persons with similar responsibilities in the state and nation.  
126.23  The commissioner may not increase the limitation until the 
126.24  commissioner has presented the proposed increase to the 
126.25  legislative coordinating commission and received the 
126.26  commission's recommendation on it.  The recommendation is 
126.27  advisory only.  If the commission does not give its 
126.28  recommendation on a proposed increase within 30 days from its 
126.29  receipt of the proposal, the commission is deemed to have 
126.30  recommended approval. 
126.31     Sec. 2.  Minnesota Statutes 1996, section 43A.17, 
126.32  subdivision 10, is amended to read: 
126.33     Subd. 10.  [LOCAL ELECTED OFFICIALS; CERTAIN COMPENSATION 
126.34  PROHIBITED.] The compensation plan for an elected official of a 
126.35  statutory or home rule charter city, county, or town, or school 
126.36  district may not include a provision for vacation or sick 
127.1   leave.  The salary of an official covered by this subdivision 
127.2   may not be diminished because of the official's absence from 
127.3   official duties because of vacation or sickness. 
127.4      Sec. 3.  Minnesota Statutes 1997 Supplement, section 
127.5   120.064, subdivision 3, is amended to read: 
127.6      Subd. 3.  [SPONSOR.] A school board, intermediate school 
127.7   district school board, private college, community college, state 
127.8   university, technical college, or the University of Minnesota 
127.9   may sponsor one or more charter schools. 
127.10     Sec. 4.  Minnesota Statutes 1997 Supplement, section 
127.11  120.101, subdivision 5, is amended to read: 
127.12     Subd. 5.  [AGES AND TERMS.] (a) Every child between seven 
127.13  and 16 years of age shall receive instruction.  Every child 
127.14  under the age of seven who is enrolled in a half-day 
127.15  kindergarten, or a full-day kindergarten program on alternate 
127.16  days, or other kindergarten programs shall receive instruction.  
127.17  Except as provided in subdivision 5a, a parent may withdraw a 
127.18  child under the age of seven from enrollment at any time. 
127.19     (b) A school district by annual board action may require 
127.20  children subject to this subdivision to receive instruction in 
127.21  summer school.  A district that acts to require children to 
127.22  receive instruction in summer school shall establish at the time 
127.23  of its action the criteria for determining which children must 
127.24  receive instruction. 
127.25     Sec. 5.  Minnesota Statutes 1996, section 120.73, 
127.26  subdivision 1, is amended to read: 
127.27     Subdivision 1.  A school board is authorized to require 
127.28  payment of fees in the following areas: 
127.29     (a) (1) in any program where the resultant product, in 
127.30  excess of minimum requirements and at the pupil's option, 
127.31  becomes the personal property of the pupil; 
127.32     (b) (2) admission fees or charges for extra curricular 
127.33  activities, where attendance is optional and where the admission 
127.34  fees or charges a student must pay to attend or participate in 
127.35  an extracurricular activity is the same for all students, 
127.36  regardless of whether the student is enrolled in a public or a 
128.1   home school; 
128.2      (c) (3) a security deposit for the return of materials, 
128.3   supplies, or equipment; 
128.4      (d) (4) personal physical education and athletic equipment 
128.5   and apparel, although any pupil may personally provide it if it 
128.6   meets reasonable requirements and standards relating to health 
128.7   and safety established by the school board; 
128.8      (e) (5) items of personal use or products which a student 
128.9   has an option to purchase such as student publications, class 
128.10  rings, annuals, and graduation announcements; 
128.11     (f) (6) fees specifically permitted by any other statute, 
128.12  including but not limited to section 171.04, subdivision 1, 
128.13  clause (1); 
128.14     (g) (7) field trips considered supplementary to a district 
128.15  educational program; 
128.16     (h) (8) any authorized voluntary student health and 
128.17  accident benefit plan; 
128.18     (i) (9) for the use of musical instruments owned or rented 
128.19  by the district, a reasonable rental fee not to exceed either 
128.20  the rental cost to the district or the annual depreciation plus 
128.21  the actual annual maintenance cost for each instrument; 
128.22     (j) (10) transportation of pupils to and from extra 
128.23  curricular activities conducted at locations other than school, 
128.24  where attendance is optional; 
128.25     (k) (11) transportation of pupils to and from school for 
128.26  which aid for fiscal year 1996 is not authorized under Minnesota 
128.27  Statutes 1994, section 124.223, subdivision 1, and for which 
128.28  levy for fiscal year 1996 is not authorized under Minnesota 
128.29  Statutes 1994, section 124.226, subdivision 5, if a district 
128.30  charging fees for transportation of pupils establishes 
128.31  guidelines for that transportation to ensure that no pupil is 
128.32  denied transportation solely because of inability to pay; 
128.33     (l) (12) motorcycle classroom education courses conducted 
128.34  outside of regular school hours; provided the charge shall not 
128.35  exceed the actual cost of these courses to the school district; 
128.36     (m) (13) transportation to and from post-secondary 
129.1   institutions for pupils enrolled under the post-secondary 
129.2   enrollment options program under section 123.39, subdivision 
129.3   16.  Fees collected for this service must be reasonable and 
129.4   shall be used to reduce the cost of operating the route.  
129.5   Families who qualify for mileage reimbursement under section 
129.6   123.3514, subdivision 8, may use their state mileage 
129.7   reimbursement to pay this fee.  If no fee is charged, districts 
129.8   shall allocate costs based on the number of pupils riding the 
129.9   route. 
129.10     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
129.11  121.11, subdivision 7c, is amended to read: 
129.12     Subd. 7c.  [RESULTS-ORIENTED GRADUATION RULE.] (a) The 
129.13  legislature is committed to establishing a rigorous, 
129.14  results-oriented graduation rule for Minnesota's public school 
129.15  students.  To that end, the state board shall use its rulemaking 
129.16  authority under subdivision 7b to adopt a statewide, 
129.17  results-oriented graduation rule to be implemented starting with 
129.18  students beginning ninth grade in the 1996-1997 school year.  
129.19  The board shall not prescribe in rule or otherwise the delivery 
129.20  system or form of instruction that local sites must use to meet 
129.21  the requirements contained in this rule. 
129.22     (b) To successfully accomplish paragraph (a), the state 
129.23  board shall set in rule high academic standards for all 
129.24  students.  The standards must contain the foundational skills in 
129.25  the three core curricular areas of reading, writing, and 
129.26  mathematics while meeting requirements for high school 
129.27  graduation.  The standards must also provide an opportunity for 
129.28  students to excel by meeting higher academic standards through a 
129.29  profile of learning that uses curricular requirements to allow 
129.30  students to expand their knowledge and skills beyond the 
129.31  foundational skills.  All state board actions regarding the rule 
129.32  must be premised on the following:  
129.33     (1) the rule is intended to raise academic expectations for 
129.34  students, teachers, and schools; 
129.35     (2) any state action regarding the rule must evidence 
129.36  consideration of school district autonomy; and 
130.1      (3) the department of children, families, and learning, 
130.2   with the assistance of school districts, must make available 
130.3   information about all state initiatives related to the rule to 
130.4   students and parents, teachers, and the general public in a 
130.5   timely format that is appropriate, comprehensive, and readily 
130.6   understandable. 
130.7      (c) For purposes of adopting the rule, the state board, in 
130.8   consultation with the department, recognized psychometric 
130.9   experts in assessment, and other interested and knowledgeable 
130.10  educators, using the most current version of professional 
130.11  standards for educational testing, shall evaluate the 
130.12  alternative approaches to assessment.  
130.13     (d) The content of the graduation rule must differentiate 
130.14  between minimum competencies reflected in the basic requirements 
130.15  assessment and rigorous profile of learning standards.  When 
130.16  fully implemented, the requirements for high school graduation 
130.17  in Minnesota must include both basic requirements and the 
130.18  required profile of learning.  The profile of learning must 
130.19  measure student performance using performance-based assessments 
130.20  compiled over time that integrate higher academic standards, 
130.21  higher order thinking skills, and application of knowledge from 
130.22  a variety of content areas.  The profile of learning shall 
130.23  include a broad range of academic experience and accomplishment 
130.24  necessary to achieve the goal of preparing students to function 
130.25  effectively as purposeful thinkers, effective communicators, 
130.26  self-directed learners, productive group participants, and 
130.27  responsible citizens.  The commissioner shall develop and 
130.28  disseminate to school districts a uniform method for reporting 
130.29  student performance on the profile of learning. 
130.30     (e) The state board shall periodically review and report on 
130.31  the assessment process and student achievement with the 
130.32  expectation of raising the standards and expanding high school 
130.33  graduation requirements. 
130.34     (f) The state board shall report in writing to the 
130.35  legislature annually by January 15 on its progress in developing 
130.36  and implementing the graduation requirements according to the 
131.1   requirements of this subdivision and section 123.97 until such 
131.2   time as all the graduation requirements are implemented. 
131.3      Sec. 7.  Minnesota Statutes 1996, section 121.11, 
131.4   subdivision 7d, is amended to read: 
131.5      Subd. 7d.  [DESEGREGATION/INTEGRATION, INCLUSIVE EDUCATION, 
131.6   AND LICENSURE RULES.] (a) The state board may By January 10, 
131.7   1999, the commissioner shall make rules relating to 
131.8   desegregation/integration, and inclusive education, and 
131.9   licensure of school personnel not licensed by the board of 
131.10  teaching. 
131.11     (b) In adopting a rule related to school 
131.12  desegregation/integration, the state board commissioner shall 
131.13  address the need for equal educational opportunities for all 
131.14  students and racial balance as defined by the state 
131.15  board commissioner.  
131.16     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
131.17  121.1113, subdivision 1, is amended to read: 
131.18     Subdivision 1.  [STATEWIDE TESTING.] (a) The commissioner, 
131.19  with advice from experts with appropriate technical 
131.20  qualifications and experience and stakeholders, shall include in 
131.21  the comprehensive assessment system, for each grade level to be 
131.22  tested, a single statewide norm-referenced or 
131.23  criterion-referenced test, or a combination of a norm-referenced 
131.24  and a criterion-referenced test, which shall be highly 
131.25  correlated with the state's graduation standards and 
131.26  administered annually to all students in the third, fifth, and 
131.27  eighth grades.  The commissioner shall establish one or more 
131.28  months during which schools shall administer the tests to 
131.29  students each school year.  The Only Minnesota basic skills 
131.30  tests in reading and, mathematics, and writing shall fulfill 
131.31  students' eighth grade testing requirements for a passing state 
131.32  notation.  
131.33     (b) In addition, at the secondary level, districts shall 
131.34  assess student performance in all required learning areas and 
131.35  selected required standards within each area of the profiles of 
131.36  learning.  The testing instruments and testing process shall be 
132.1   determined by the commissioner.  The results shall be aggregated 
132.2   at the site and district level.  The testing shall be 
132.3   administered beginning in the 1999-2000 school year and 
132.4   thereafter. 
132.5      (c) The comprehensive assessment system shall include an 
132.6   evaluation of school site and school district performance levels 
132.7   during the 1997-1998 school year and thereafter using an 
132.8   established performance baseline developed from students' test 
132.9   scores under this section that records, at a minimum, students' 
132.10  unweighted mean test scores in each tested subject, a second 
132.11  performance baseline that reports, at a minimum, the same 
132.12  unweighted mean test scores of only those students enrolled in 
132.13  the school by January 1 of the previous school year, and a third 
132.14  performance baseline that reports the same unweighted test 
132.15  scores of all students except those students receiving limited 
132.16  English proficiency instruction.  The evaluation also shall 
132.17  record separately, in proximity to the performance baselines, 
132.18  the percentages of students who are eligible to receive a free 
132.19  or reduced price school meal, demonstrate limited English 
132.20  proficiency, or are eligible to receive special education 
132.21  services. 
132.22     (d) In addition to the testing and reporting requirements 
132.23  under paragraphs (a), (b), and (c), the commissioner, in 
132.24  consultation with the state board of education, shall include 
132.25  the following components in the statewide educational 
132.26  accountability and public reporting system: 
132.27     (1) uniform statewide testing of all third, fifth, eighth, 
132.28  and post-eighth grade students with exemptions, only with parent 
132.29  or guardian approval, from the testing requirement only for 
132.30  those very few students for whom the student's individual 
132.31  education plan team under section 120.17, subdivision 2, 
132.32  determines that the student is incapable of taking a statewide 
132.33  test, or a limited English proficiency student under section 
132.34  126.262, subdivision 2, if the student has been in the United 
132.35  States for fewer than 12 months and for whom special language 
132.36  barriers exist, such as the student's native language does not 
133.1   have a written form or the district does not have access to 
133.2   appropriate interpreter services for the student's native 
133.3   language; 
133.4      (2) educational indicators that can be aggregated and 
133.5   compared across school districts and across time on a statewide 
133.6   basis; 
133.7      (3) students' scores on the American College Test; 
133.8      (4) participation in the National Assessment of Educational 
133.9   Progress so that the state can benchmark its performance against 
133.10  the nation and other states, and, where possible, against other 
133.11  countries, and contribute to the national effort to monitor 
133.12  achievement; and 
133.13     (5) basic skills and advanced competencies connecting 
133.14  teaching and learning to high academic standards, assessment, 
133.15  and transitions to citizenship and employment. 
133.16     (e) Districts must report exemptions under paragraph (d), 
133.17  clause (1), to the commissioner consistent with a format 
133.18  provided by the commissioner. 
133.19     Sec. 9.  [121.1114] [GRADUATION RULE.] 
133.20     Subdivision 1.  [IMPLEMENTATION OF THE PROFILE OF 
133.21  LEARNING.] (a) A school district shall implement the profile of 
133.22  learning of the graduation rule under paragraph (b), (c), or (d).
133.23     A district may implement the profile of learning under 
133.24  paragraph (c) or (d) only after the commissioner approves the 
133.25  district's request for a waiver and approves the local plan for 
133.26  full implementation. 
133.27     (b) A school district shall implement the profile of 
133.28  learning for the 1998-1999 school year and later.  
133.29     (c) A school district shall implement the profile of 
133.30  learning as follows: 
133.31     (1) for the 1998-1999 school year and later, the district 
133.32  shall implement all required standards in learning areas at the 
133.33  preparatory level and implement for ninth grade students a 
133.34  minimum of six learning areas under the profile of learning with 
133.35  three from the areas of read, listen, and view; write and speak; 
133.36  mathematical applications; scientific applications; and people 
134.1   and cultures; and three from the areas of literature and the 
134.2   arts; inquiry; decision making; resource management; and world 
134.3   language; 
134.4      (2) for the 1999-2000 school year and later, the district 
134.5   shall implement for ninth and tenth grade students two learning 
134.6   areas in addition to those implemented under clause (1).  The 
134.7   district shall complete the four learning areas of read, listen, 
134.8   and view; write and speak; mathematical applications; scientific 
134.9   applications; and people and cultures if the four areas were not 
134.10  completed in clause (1); and the remainder from the areas of 
134.11  literature and the arts; inquiry; decision making; resource 
134.12  management; and world language; and 
134.13     (3) for the 2000-2001 school year and later, the district 
134.14  shall implement for ninth, tenth, and eleventh grade students 
134.15  the two learning areas in the profile of learning that were not 
134.16  implemented under clauses (1) and (2). 
134.17     (d) A district shall develop a local plan to implement the 
134.18  profile of learning and have all ten learning areas fully 
134.19  implemented by the 2001-2002 school year.  
134.20     (e) A district shall notify the commissioner by July 1, 
134.21  1998, as to whether the district will implement the profile of 
134.22  learning under paragraph (b), (c), or (d). 
134.23     (f) An advisory committee of 11 members is established to 
134.24  advise the governor and commissioner on the implementation of 
134.25  the graduation rule under this section.  The commissioner shall 
134.26  appoint 11 members with representatives from education 
134.27  organizations, business, higher education, parents, and 
134.28  organizations representing communities of color. 
134.29     The committee shall review the implementation of the basic 
134.30  requirements and the profile of learning standards. 
134.31     The commissioner shall provide technical and other 
134.32  assistance to the advisory committee.  The committee expires on 
134.33  December 1, 1998. 
134.34     Subd. 2.  [PERFORMANCE PACKAGES.] Teachers are not required 
134.35  to use a state model performance package.  Teachers are 
134.36  encouraged to develop and use a performance package that equals 
135.1   or exceeds the difficulty of the state model performance package.
135.2      Subd. 3.  [WAIVER.] In order to receive a waiver, a 
135.3   district must document why the waiver is necessary, how the 
135.4   local plan improves student achievement, and how the profile of 
135.5   learning will be fully implemented for the 2001-2002 school year.
135.6      Sec. 10.  Minnesota Statutes 1996, section 121.1115, is 
135.7   amended by adding a subdivision to read: 
135.8      Subd. 1b.  [EDUCATIONAL ACCOUNTABILITY.] (a) The 
135.9   independent office of educational accountability, as authorized 
135.10  by Laws 1997, First Special Session chapter 4, article 5, 
135.11  section 28, subdivision 2, is established.  The office shall 
135.12  advise the education committees of the legislature and the 
135.13  commissioner of children, families, and learning, at least on a 
135.14  biennial basis, on the degree to which the statewide educational 
135.15  accountability and reporting system includes a comprehensive 
135.16  assessment framework that measures school accountability for 
135.17  students achieving the goals described in the state's 
135.18  results-oriented graduation rule.  The office shall consider 
135.19  whether the statewide system of educational accountability 
135.20  utilizes multiple indicators to provide valid and reliable 
135.21  comparative and contextual data on students, schools, districts, 
135.22  and the state, and if not, recommend ways to improve the 
135.23  accountability reporting system. 
135.24     (b) When the office reviews the statewide educational 
135.25  accountability and reporting system, it shall also consider: 
135.26     (1) the objectivity and neutrality of the state's 
135.27  educational accountability system; and 
135.28     (2) the impact of a testing program on school curriculum 
135.29  and student learning. 
135.30     Sec. 11.  Minnesota Statutes 1996, section 125.183, 
135.31  subdivision 1, is amended to read: 
135.32     Subdivision 1.  The board of teaching consists of 11 
135.33  members appointed by the governor, with the advice and consent 
135.34  of the senate.  Membership terms, compensation of members, 
135.35  removal of members, the filling of membership vacancies, and 
135.36  fiscal year and reporting requirements shall be as provided in 
136.1   sections 214.07 to 214.09.  No member may be reappointed for 
136.2   more than one additional term. 
136.3      Sec. 12.  Minnesota Statutes 1996, section 125.183, 
136.4   subdivision 3, is amended to read: 
136.5      Subd. 3.  [MEMBERSHIP.] Except for the representatives of 
136.6   higher education and the public, to be eligible for appointment 
136.7   to the board of teaching a person must be a teacher currently 
136.8   teaching in a Minnesota school and fully licensed for the 
136.9   position held and have at least five years teaching experience 
136.10  in Minnesota, including the two years immediately preceding 
136.11  nomination and appointment.  Each nominee, other than a public 
136.12  nominee, must be selected on the basis of professional 
136.13  experience and knowledge of teacher education, accreditation, 
136.14  and licensure.  The board must be composed of: 
136.15     (1) six classroom teachers who are currently teaching in a 
136.16  Minnesota school, at least four of whom must be teaching in a 
136.17  public school; 
136.18     (2) one higher education representative, who must be a 
136.19  faculty member preparing teachers; 
136.20     (3) one school administrator; and 
136.21     (4) three members of the public, two of whom must be 
136.22  present or former members of school boards. 
136.23     Sec. 13.  Minnesota Statutes 1996, section 126.70, 
136.24  subdivision 2a, is amended to read: 
136.25     Subd. 2a.  [STAFF DEVELOPMENT OUTCOMES.] The staff 
136.26  development committee shall adopt a staff development plan for 
136.27  improving student achievement of education outcomes.  The plan 
136.28  must be consistent with education outcomes that the school board 
136.29  determines.  The plan shall include ongoing staff development 
136.30  activities that contribute toward continuous improvement in 
136.31  achievement of the following goals: 
136.32     (1) improve student achievement of state and local 
136.33  education standards in all areas of the curriculum by using best 
136.34  practices methods; 
136.35     (2) effectively meet the needs of a diverse student 
136.36  population, including at-risk children, children with 
137.1   disabilities, and gifted children, within the regular classroom 
137.2   and other settings; 
137.3      (3) provide an inclusive curriculum for a racially, 
137.4   ethnically, and culturally diverse student population that is 
137.5   consistent with the state education diversity rule and the 
137.6   district's education diversity plan; 
137.7      (4) improve staff ability to collaborate and consult with 
137.8   one another and to resolve conflicts; 
137.9      (5) effectively teach and model violence prevention policy 
137.10  and curriculum that address issues of harassment and teach 
137.11  nonviolent alternatives for conflict resolution; and 
137.12     (6) provide teachers and other members of site-based 
137.13  management teams with appropriate management and financial 
137.14  management skills. 
137.15     Sec. 14.  Minnesota Statutes 1996, section 128A.02, 
137.16  subdivision 1, is amended to read: 
137.17     Subdivision 1.  [TO GOVERN GOVERNANCE.] The state board of 
137.18  education the Faribault academy shall govern the state academy 
137.19  for the deaf and the state academy for the blind.  The board 
137.20  must promote academic standards based on high expectation and an 
137.21  assessment system to measure academic performance toward the 
137.22  achievement of those standards.  The board must focus on the 
137.23  academies' needs as a whole and not prefer one school over the 
137.24  other.  The board of the Faribault academies shall consist of 
137.25  seven persons.  The members of the board shall be appointed by 
137.26  the governor with the advice and consent of the senate.  Three 
137.27  members must be from the seven-county metropolitan area, three 
137.28  members must be from greater Minnesota, and one member may be 
137.29  appointed at-large.  The board must be composed of: 
137.30     (1) one superintendent of an independent school district; 
137.31     (2) one special education director; 
137.32     (3) the commissioner of children, families, and learning or 
137.33  the commissioner's designee; 
137.34     (4) one member of the blind community; 
137.35     (5) one member of the deaf community; and 
137.36     (6) two members of the general public with business or 
138.1   financial expertise. 
138.2      Sec. 15.  Minnesota Statutes 1996, section 128A.02, is 
138.3   amended by adding a subdivision to read: 
138.4      Subd. 1b.  [TERMS; COMPENSATION; AND OTHER.] The membership 
138.5   terms, compensation, removal of members, and filling of 
138.6   vacancies shall be as provided for in section 15.0575.  A member 
138.7   may serve not more than two consecutive terms. 
138.8      Sec. 16.  Minnesota Statutes 1996, section 128A.02, is 
138.9   amended by adding a subdivision to read: 
138.10     Subd. 2b.  [MEETINGS.] All meetings of the board shall be 
138.11  as provided in section 471.705 and must be held in Faribault. 
138.12     Sec. 17.  Minnesota Statutes 1996, section 128A.02, 
138.13  subdivision 3, is amended to read: 
138.14     Subd. 3.  [MOST BENEFICIAL, LEAST RESTRICTIVE.] The state 
138.15  board must do what is necessary to provide the most beneficial 
138.16  and least restrictive program of education for each pupil at the 
138.17  academies who is handicapped by visual disability or deafness.  
138.18     Sec. 18.  Minnesota Statutes 1996, section 128A.02, 
138.19  subdivision 3b, is amended to read: 
138.20     Subd. 3b.  [PLANNING, EVALUATION, AND REPORTING.] To the 
138.21  extent required in school districts, the state board must 
138.22  establish a process for the academies to include parent and 
138.23  community input in the planning, evaluation, and reporting of 
138.24  curriculum and pupil achievement. 
138.25     Sec. 19.  Minnesota Statutes 1996, section 128A.02, 
138.26  subdivision 5, is amended to read: 
138.27     Subd. 5.  [SITE COUNCILS.] The state board may establish, 
138.28  and appoint members to, a site council at each academy.  The 
138.29  site councils shall exercise power and authority granted by 
138.30  the state board.  The state board must appoint to each site 
138.31  council the exclusive representative's employee designee from 
138.32  each exclusive representative at the academies. 
138.33     Sec. 20.  Minnesota Statutes 1996, section 128A.02, 
138.34  subdivision 6, is amended to read: 
138.35     Subd. 6.  [TRUSTEE OF ACADEMIES' PROPERTY.] The state board 
138.36  is the trustee of the academies' property.  Securities and 
139.1   money, including income from the property, must be deposited in 
139.2   the state treasury according to section 16A.275.  The deposits 
139.3   are subject to the order of the state board.  
139.4      Sec. 21.  Minnesota Statutes 1997 Supplement, section 
139.5   128A.02, subdivision 7, is amended to read: 
139.6      Subd. 7.  [GRANTS.] The state board, through the chief 
139.7   administrators of the academies, may apply for all competitive 
139.8   grants administered by agencies of the state and other 
139.9   government or nongovernment sources.  Application may not be 
139.10  made for grants over which the board has discretion. 
139.11     Sec. 22.  Minnesota Statutes 1996, section 128A.022, is 
139.12  amended to read: 
139.13     128A.022 [POWERS OF STATE BOARD OF EDUCATION THE FARIBAULT 
139.14  ACADEMIES.] 
139.15     Subdivision 1.  [PERSONNEL.] The state board of education 
139.16  of the Faribault academies may employ central administrative 
139.17  staff members and other personnel necessary to provide and 
139.18  support programs and services at each academy.  
139.19     Subd. 2.  [GET HELP FROM DEPARTMENT.] The state board of 
139.20  the Faribault academies may require the department of children, 
139.21  families, and learning to provide program leadership, program 
139.22  monitoring, and technical assistance at the academies.  
139.23     Subd. 3.  [UNCLASSIFIED POSITIONS.] The state board of the 
139.24  Faribault academies may place any position other than 
139.25  residential academies administrator in the unclassified 
139.26  service.  The position must meet the criteria in section 43A.08, 
139.27  subdivision 1a.  
139.28     Subd. 4.  [RESIDENTIAL AND BUILDING MAINTENANCE SERVICES.] 
139.29  The state board of the Faribault academies may enter into 
139.30  agreements with public or private agencies or institutions to 
139.31  provide residential and building maintenance services.  
139.32  The state board of the Faribault academies must first decide 
139.33  that contracting for the services is more efficient and less 
139.34  expensive than not contracting for them.  
139.35     Subd. 6.  [STUDENT TEACHERS AND PROFESSIONAL TRAINEES.] (a) 
139.36  The state board of the Faribault academies may enter into 
140.1   agreements with teacher preparation institutions for student 
140.2   teachers to get practical experience at the academies.  A 
140.3   licensed teacher must provide appropriate supervision of each 
140.4   student teacher.  
140.5      (b) The state board of the Faribault academies may enter 
140.6   into agreements with accredited higher education institutions 
140.7   for certain student trainees to get practical experience at the 
140.8   academies.  The students must be preparing themselves in a 
140.9   professional field that provides special services to children 
140.10  with a disability in school programs.  To be a student trainee 
140.11  in a field, a person must have completed at least two years of 
140.12  an approved program in the field.  A person who is licensed or 
140.13  registered in the field must provide appropriate supervision of 
140.14  each student trainee.  
140.15     Sec. 23.  Minnesota Statutes 1996, section 128A.023, 
140.16  subdivision 1, is amended to read: 
140.17     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
140.18  LEARNING.] The department of children, families, and learning 
140.19  must assist the state board of education the Faribault academies 
140.20  in preparing reports on the academies.  
140.21     Sec. 24.  Minnesota Statutes 1996, section 128A.023, 
140.22  subdivision 2, is amended to read: 
140.23     Subd. 2.  [DEPARTMENT OF EMPLOYEE RELATIONS.] The 
140.24  department of employee relations, in cooperation with the state 
140.25  board of education the Faribault academies, must develop a 
140.26  statement of necessary qualifications and skills for all staff 
140.27  members of the academies. 
140.28     Sec. 25.  Minnesota Statutes 1996, section 128A.026, 
140.29  subdivision 1, is amended to read: 
140.30     Subdivision 1.  [SUBJECTS.] The state board of education 
140.31  the Faribault academies must establish procedures for:  
140.32     (1) admission, including short-term admission, to the 
140.33  academies; 
140.34     (2) discharge from the academies; 
140.35     (3) decisions on a pupil's program at the academies; and 
140.36     (4) evaluation of a pupil's progress at the academies.  
141.1      Sec. 26.  Minnesota Statutes 1996, section 128A.026, 
141.2   subdivision 3, is amended to read: 
141.3      Subd. 3.  [NOT CONTESTED CASE.] A proceeding about 
141.4   admission to or discharge from the academies or about a pupil's 
141.5   program or progress at the academies is not a contested case 
141.6   under section 14.02.  The proceeding is governed instead by the 
141.7   rules of the state board governing special education.  
141.8      Sec. 27.  Minnesota Statutes 1996, section 128A.07, 
141.9   subdivision 2, is amended to read: 
141.10     Subd. 2.  [LOCAL SOCIAL SERVICES AGENCY.] If the person 
141.11  liable for support of a pupil cannot support the pupil, the 
141.12  local social services agency of the county of the pupil's 
141.13  residence must do so.  The commissioner of children, families, 
141.14  and learning must decide how much the local social services 
141.15  agency must pay.  The state board of education the Faribault 
141.16  academies must adopt rules that tell how the commissioner is to 
141.17  fix the amount.  The local social services agency must make the 
141.18  payment to the superintendent of the school district of 
141.19  residence.  
141.20     Sec. 28.  Minnesota Statutes 1996, section 260.015, 
141.21  subdivision 19, is amended to read: 
141.22     Subd. 19.  [HABITUAL TRUANT.] "Habitual truant" means a 
141.23  child under the age of 16 years who is absent from attendance at 
141.24  school without lawful excuse for seven school days if the child 
141.25  is in elementary school or for one or more class periods on 
141.26  seven school days if the child is in middle school, junior high 
141.27  school, or high school, or a child who is 16 or 17 years of age 
141.28  who is absent from attendance at school without lawful excuse 
141.29  for one or more class periods on seven school days and who has 
141.30  not lawfully withdrawn from school under section 120.101, 
141.31  subdivision 5d.  
141.32     Sec. 29.  Minnesota Statutes 1996, section 260.131, 
141.33  subdivision 1b, is amended to read: 
141.34     Subd. 1b.  [CHILD IN NEED OF PROTECTION OR SERVICES; 
141.35  HABITUAL TRUANT.] If there is a school attendance review board 
141.36  or county attorney mediation program operating in the child's 
142.1   school district, a petition alleging that a child is in need of 
142.2   protection or services as a habitual truant under section 
142.3   260.015, subdivision 2a, clause (12), may not be filed until the 
142.4   applicable procedures under section 260A.06 or 260A.07 have been 
142.5   exhausted followed. 
142.6      Sec. 30.  Minnesota Statutes 1996, section 260.132, 
142.7   subdivision 1, is amended to read: 
142.8      Subdivision 1.  [NOTICE.] When a peace officer, or 
142.9   attendance officer in the case of a habitual truant, has 
142.10  probable cause to believe that a child: 
142.11     (1) is in need of protection or services under section 
142.12  260.015, subdivision 2a, clause (11) or (12); 
142.13     (2) is a juvenile petty offender; or 
142.14     (3) has committed a delinquent act that would be a petty 
142.15  misdemeanor or misdemeanor if committed by an adult; 
142.16  the officer may issue a notice to the child to appear in 
142.17  juvenile court in the county in which the child is found or in 
142.18  the county of the child's residence or, in the case of a 
142.19  juvenile petty offense, or a petty misdemeanor or misdemeanor 
142.20  delinquent act, the county in which the offense was committed.  
142.21  If there is a school attendance review board or county attorney 
142.22  mediation program operating in the child's school district, a 
142.23  notice to appear in juvenile court for a habitual truant may not 
142.24  be issued until the applicable procedures under section 260A.06 
142.25  or 260A.07 have been exhausted followed.  The officer shall file 
142.26  a copy of the notice to appear with the juvenile court of the 
142.27  appropriate county.  If a child fails to appear in response to 
142.28  the notice, the court may issue a summons notifying the child of 
142.29  the nature of the offense alleged and the time and place set for 
142.30  the hearing.  If the peace officer finds it necessary to take 
142.31  the child into custody, sections 260.165 and 260.171 shall apply.
142.32     Sec. 31.  Minnesota Statutes 1996, section 260A.05, 
142.33  subdivision 2, is amended to read: 
142.34     Subd. 2.  [GENERAL POWERS AND DUTIES.] A school attendance 
142.35  review board shall prepare an annual plan to promote interagency 
142.36  and community cooperation and to reduce duplication of services 
143.1   for students with school attendance problems.  The plan shall 
143.2   include a description of truancy procedures and services 
143.3   currently in operation within the board's jurisdiction, 
143.4   including the programs and services under section 260A.04.  A 
143.5   board may provide consultant services to, and coordinate 
143.6   activities of, truancy programs and services.  If a board 
143.7   determines that it will be unable to provide services for all 
143.8   truant students who are referred to it, the board shall 
143.9   establish procedures and criteria for determining whether to 
143.10  accept referrals of students or refer them for other appropriate 
143.11  action. 
143.12     Sec. 32.  Minnesota Statutes 1996, section 260A.06, is 
143.13  amended to read: 
143.14     260A.06 [REFERRAL OF TRUANT STUDENTS TO SCHOOL ATTENDANCE 
143.15  REVIEW BOARD.] 
143.16     Subdivision 1.  [REFERRAL; NOTICE.] An attendance officer 
143.17  or other school official may refer a student who is a continuing 
143.18  truant to the school attendance review board.  The person making 
143.19  the referral shall provide a written notice by first class mail 
143.20  or other reasonable means to the student and the student's 
143.21  parent or legal guardian.  The notice must: 
143.22     (1) include the name and address of the board to which the 
143.23  student has been referred and the reason for the referral; and 
143.24     (2) indicate that the student, the parent or legal 
143.25  guardian, and the referring person will meet with the board to 
143.26  determine a proper disposition of the referral, unless the board 
143.27  refers the student directly to the county attorney or for other 
143.28  appropriate legal action. 
143.29     Subd. 2.  [MEETING; COMMUNITY SERVICES.] (a) Except as 
143.30  provided in paragraph (b), the school attendance review board 
143.31  shall schedule the meeting described in subdivision 1 and 
143.32  provide notice of the meeting by first class mail or other 
143.33  reasonable means to the student, parent or guardian, and 
143.34  referring person.  If the board determines that available 
143.35  community services may resolve the attendance problems of the 
143.36  truant student, the board shall refer the student or the 
144.1   student's parent or guardian to participate in the community 
144.2   services.  The board may develop an agreement with the student 
144.3   and parent or guardian that specifies the actions to be taken.  
144.4   The board shall inform the student and parent or guardian that 
144.5   failure to comply with any agreement or to participate in 
144.6   appropriate community services will result in a referral to the 
144.7   county attorney under subdivision 3.  The board may require the 
144.8   student or parent or guardian to provide evidence of 
144.9   participation in available community services or compliance with 
144.10  any agreement. 
144.11     (b) A school attendance review board may refer a student 
144.12  directly to the county attorney or for other appropriate legal 
144.13  action under subdivision 3 if it has established procedures and 
144.14  criteria for these referrals. 
144.15     Subd. 3.  [REFERRAL TO COUNTY ATTORNEY; OTHER APPROPRIATE 
144.16  ACTION.] If the school attendance review board determines that 
144.17  available community services cannot resolve the attendance 
144.18  problems of the truant student or, if the student or the parent 
144.19  or guardian has failed to comply with any referrals or 
144.20  agreements under subdivision 2 or to otherwise cooperate with 
144.21  the board, or if the board determines that a student should be 
144.22  referred directly under this subdivision, the board may: 
144.23     (1) refer the matter to the county attorney under section 
144.24  260A.07, if the county attorney has elected to participate in 
144.25  the truancy mediation program; or 
144.26     (2) if the county attorney has not elected to participate 
144.27  in the truancy mediation program, refer the matter for 
144.28  appropriate legal action against the child or the child's parent 
144.29  or guardian under chapter 260 or section 127.20. 
144.30     Sec. 33.  Laws 1997, First Special Session chapter 4, 
144.31  article 5, section 24, subdivision 4, is amended to read: 
144.32     Subd. 4.  [GRANT AWARDS.] A school district or any group of 
144.33  districts may receive a grant in the amount of $25 per pupil per 
144.34  year.  The A grant recipient with 6,000 or more pupils in 
144.35  average daily membership must match one local dollar for every 
144.36  state dollar received.  The local match may include in kind 
145.1   contributions.  In awarding grants, the commissioner shall 
145.2   consider which students will benefit most from these programs. 
145.3   No grant recipient shall use the grant award to supplant 
145.4   existing funding for gifted and talented programs. 
145.5      Sec. 34.  Laws 1997, First Special Session chapter 4, 
145.6   article 5, section 28, subdivision 4, is amended to read: 
145.7      Subd. 4.  [ADVANCED PLACEMENT AND INTERNATIONAL 
145.8   BACCALAUREATE PROGRAMS.] For the state advanced placement and 
145.9   international baccalaureate programs: 
145.10       $1,875,000     .....     1998 
145.11       $1,875,000     .....     1999 
145.12     Notwithstanding Minnesota Statutes, section 126.239, 
145.13  subdivisions 1 and 2, $200,000 each year is for teachers to 
145.14  attend subject matter summer training programs and follow-up 
145.15  support workshops approved by the advanced placement or 
145.16  international baccalaureate programs.  The amount of the subsidy 
145.17  for each teacher attending an advanced placement or 
145.18  international baccalaureate summer training program or workshop 
145.19  shall be the same.  The commissioner shall determine the payment 
145.20  process and the amount of the subsidy. 
145.21     Notwithstanding Minnesota Statutes, section 126.239, 
145.22  subdivision 3, in each year to the extent of available 
145.23  appropriations, the commissioner shall pay all examination fees 
145.24  for all students sitting for an advanced placement examination, 
145.25  international baccalaureate examination, or both.  If this 
145.26  amount is not adequate, the commissioner may pay less than the 
145.27  full examination fee. 
145.28     $300,000 each year is for student scholarships.  A student 
145.29  scholarship shall be awarded to a student scoring three or 
145.30  better on one or more advanced placement examinations or a four 
145.31  or better on one or more international baccalaureate 
145.32  examinations.  The amount of each scholarship shall range from 
145.33  $150 $75 to $500 based on the student's score on the exams.  The 
145.34  scholarships shall be awarded only to students who are enrolled 
145.35  in a Minnesota public or private college or university.  The 
145.36  total amount of each scholarship shall be paid directly to the 
146.1   student's designated college or university and must be used by 
146.2   the student only for tuition, required fees, and books in 
146.3   nonsectarian courses or programs.  The higher education services 
146.4   office, in consultation with the commissioner, shall determine 
146.5   the payment process, the amount of the scholarships, and 
146.6   provisions for unused scholarships.  
146.7      In order to be eligible to receive advanced placement or 
146.8   international baccalaureate scholarships on behalf of the 
146.9   qualifying students, the college or university must have an 
146.10  advanced placement, international baccalaureate, or both, credit 
146.11  and placement policy for the scholarship recipients.  In 
146.12  addition, each college or university must certify these policies 
146.13  to the department each year.  The department must provide each 
146.14  secondary school in the state with a copy of the post-secondary 
146.15  advanced placement and international baccalaureate policies each 
146.16  year. 
146.17     $375,000 each year is for teacher stipends.  A teacher who 
146.18  teaches an advanced placement or international baccalaureate 
146.19  course shall receive a stipend for each student in that 
146.20  teacher's course who receives a three or better on the advanced 
146.21  placement or a four or better on the international baccalaureate 
146.22  examination that covers the subject matter of the course.  The 
146.23  commissioner shall determine the payment process and the amount 
146.24  of the teacher stipend ranging from $25 to $50 for each student 
146.25  receiving a qualifying score. 
146.26     A stipend awarded to a teacher under this subdivision shall 
146.27  not be a mandatory subject of bargaining under Minnesota 
146.28  Statutes, chapter 179A, or any other law and shall not be a term 
146.29  or condition of employment.  The amount of any award shall be 
146.30  final and shall not be subject to review by an arbitrator 
146.31  through any grievance or other process or by a court through any 
146.32  appeal process.  
146.33     Any balance in the first year does not cancel but is 
146.34  available in the second year. 
146.35     Sec. 35.  Laws 1997, First Special Session chapter 4, 
146.36  article 5, section 28, subdivision 9, is amended to read: 
147.1      Subd. 9.  [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For 
147.2   grants to collaborative urban educator programs that prepare and 
147.3   license people of color to teach: 
147.4        $895,000     .....     1998
147.5        $500,000     .....     1999 
147.6      This appropriation is available until June 30, 1999. 
147.7      Sec. 36.  Laws 1997, First Special Session chapter 4, 
147.8   article 5, section 28, subdivision 10, is amended to read: 
147.9      Subd. 10.  [CHARTER SCHOOL BUILDING LEASE AID.] For 
147.10  building lease aid according to section 124.248, subdivision 2a: 
147.11       $1,078,000 $1,294,000    .....     1998 
147.12       $1,577,000 $1,889,000    .....     1999 
147.13     The 1999 appropriation includes $120,000 $143,000 for 1998 
147.14  and $1,457,000 $1,746,000 for 1999. 
147.15     Sec. 37.  Laws 1997, First Special Session chapter 4, 
147.16  article 5, section 28, subdivision 11, is amended to read: 
147.17     Subd. 11.  [CHARTER SCHOOL START-UP GRANTS.] For charter 
147.18  school start-up cost aid under Minnesota Statutes, section 
147.19  124.248: 
147.20       $500,000 $900,000      .....     1998 
147.21       $1,000,000     .....     1999 
147.22     The 1999 appropriation includes $100,000 for 1998 and 
147.23  $900,000 for 1999.  
147.24     Any balance in the first year does not cancel but is 
147.25  available in the second year.  This appropriation may also be 
147.26  used for grants to convert existing schools into charter schools.
147.27     Sec. 38.  Laws 1997 First Special Session, chapter 4, 
147.28  article 5, section 28, subdivision 17, is amended to read: 
147.29     Subd. 17.  [YEAR-ROUND SCHOOL/EXTENDED WEEK OR DAY GRANTS.] 
147.30  For year-round school/extended week or day grants under Laws 
147.31  1995, First Special Session chapter 3, article 7, section 4: 
147.32       $1,800,000     .....     1998 
147.33         $455,000     .....     1999
147.34     The department of children, families, and learning must 
147.35  award grants to school districts with priority given to programs 
147.36  that have not previously received year-round school/extended 
148.1   week or day pilot grants.  Of this amount, $500,000 is for a 
148.2   grant to independent school district No. 624, White Bear Lake.  
148.3   Of this amount, $225,000 is for a year-round school extended day 
148.4   project in independent school district No. 911, Cambridge.  Of 
148.5   this amount, $200,000 is for the four-period day program at 
148.6   independent school district No. 833, south Washington 
148.7   county.  Of the fiscal year 1999 appropriation, $250,000 is for 
148.8   a grant to independent school district No. 241, Albert Lea, 
148.9   $105,000 is for a grant to independent school district No. 200, 
148.10  Hastings, and $100,000 is for a grant to independent school 
148.11  district No. 270, Hopkins.  The maximum grant amount for other 
148.12  recipients is $300,000.  Grant recipients are required to make 
148.13  reports on progress made, planning, and implementing projects in 
148.14  the form and manner specified by the department of children, 
148.15  families, and learning. 
148.16     The senior high site councils in the independent school 
148.17  district No. 833, south Washington county, shall develop and 
148.18  implement a model four-period day curriculum during the 
148.19  1997-1998 and 1998-1999 school years.  The site councils shall 
148.20  seek input from parents, teachers, and students in the design 
148.21  and implementation of the four-period day model.  If one or more 
148.22  site councils determine a four-period day model is not 
148.23  desirable, the site council shall report its recommendations 
148.24  back to the board and need not proceed with the development and 
148.25  implementation of the model. 
148.26     The south Washington county school board shall develop a 
148.27  system for monitoring and evaluating the development and 
148.28  implementation of the four-period day models at its high 
148.29  schools.  The board shall monitor and evaluate:  (1) the process 
148.30  used by the site council to discuss, develop, and implement a 
148.31  four-period day; and (2) the academic outcomes of students after 
148.32  the four-period day has been fully implemented.  To evaluate the 
148.33  academic outcomes of students, the district shall compare the 
148.34  academic achievement of its high school students with the 
148.35  achievement of students in similar school districts using a 
148.36  six-period day model.  The board shall report the results of its 
149.1   evaluation to the commissioner of children, families, and 
149.2   learning on August 30, 1998, and August 30, 1999.  The reports 
149.3   shall include a detailed description of the site-based, 
149.4   decision-making model that was used to develop and implement the 
149.5   four-period day and the steps that were taken to successfully 
149.6   implement and evaluate the model. 
149.7      Independent school district No. 833, south Washington 
149.8   County, shall complete a class size mitigation pilot project to 
149.9   explore options for improving learning outcomes in elementary 
149.10  and junior high classrooms with 30 or more students.  The 
149.11  options for mitigating the adverse impacts of large class sizes 
149.12  shall be developed and implemented using a site-based management 
149.13  decision-making process.  The district shall report the results 
149.14  of its pilot project to the commissioner of children, families, 
149.15  and learning by August 30, 1998. 
149.16     Sec. 39.  Laws 1997, First Special Session chapter 4, 
149.17  article 6, section 20, subdivision 4, is amended to read: 
149.18     Subd. 4.  [SCHOOL LUNCH AND FOOD STORAGE AID.] (a) For 
149.19  school lunch aid according to Minnesota Statutes, section 
149.20  124.646, and Code of Federal Regulations, title 7, section 
149.21  210.17, and for food storage and transportation costs for United 
149.22  States Department of Agriculture donated commodities; and for a 
149.23  temporary transfer to the commodity processing revolving fund to 
149.24  provide cash flow to permit schools and other recipients of 
149.25  donated commodities to take advantage of volume processing rates 
149.26  and for school milk aid according to Minnesota Statutes, section 
149.27  124.648:  
149.28       $7,254,000     .....     1998 
149.29       $7,254,000 $7,770,000    .....     1999 
149.30     (b) Any unexpended balance remaining from the 
149.31  appropriations in this subdivision shall be prorated among 
149.32  participating schools based on the number of free, reduced, and 
149.33  fully paid federally reimbursable student lunches served during 
149.34  that school year.  
149.35     (c) If the appropriation amount attributable to either year 
149.36  is insufficient, the rate of payment for each fully paid student 
150.1   lunch shall be reduced and the aid for that year shall be 
150.2   prorated among participating schools so as not to exceed the 
150.3   total authorized appropriation for that year.  
150.4      (d) Any temporary transfer processed in accordance with 
150.5   this subdivision to the commodity processing fund will be 
150.6   returned by June 30 in each year so that school lunch aid and 
150.7   food storage costs can be fully paid as scheduled.  
150.8      (e) Not more than $800,000 of the amount appropriated each 
150.9   year may be used for school milk aid. 
150.10     (f) The commissioner may reduce other future aid and grant 
150.11  payments due to school districts and other organizations for the 
150.12  costs of processing and storage of commodities used by the 
150.13  district or organization. 
150.14     Sec. 40.  [GRADUATION RULE RESOURCE GRANTS.] 
150.15     The commissioner of children, families, and learning shall 
150.16  award grants to develop learning resources for the state's 
150.17  results-oriented graduation rule.  The grants are available to: 
150.18     (1) provide staff development for implementation of the 
150.19  graduation standards, including training in economics, the arts, 
150.20  and training in technology by community members; 
150.21     (2) establish and equip learning resource centers; 
150.22     (3) develop and sustain historical educational programming; 
150.23     (4) make historical collections available via the Internet; 
150.24     (5) develop a system of graduation rule implementation for 
150.25  alternative programs; 
150.26     (6) develop systemic site decision-making models and 
150.27  implementing site decision making in schools; 
150.28     (7) expand attention and reading readiness programs; and 
150.29     (8) provide for reporting systems. 
150.30     The commissioner may require a match of private funds as 
150.31  part of the application process.  
150.32     Sec. 41.  [REPORT.] 
150.33     The commissioner of children, families, and learning, in 
150.34  consultation with the Minnesota state colleges and universities, 
150.35  the University of Minnesota, and the private college council, 
150.36  shall examine the training of teachers entering the workforce in 
151.1   Minnesota.  The commissioner shall also consult with the 
151.2   Minnesota federation of teachers and the Minnesota education 
151.3   association for this report.  The report shall make 
151.4   recommendations for proposed legislative action to promote a 
151.5   more direct connection between teacher training and student 
151.6   learning needs under the state's results-oriented graduation 
151.7   rule.  The commissioner shall seek assistance from the state 
151.8   public policy unit within the Humphrey Institute of Minnesota 
151.9   for existing research in this area for this report.  The 
151.10  commissioner shall report its findings to education committees 
151.11  of the legislature by December 1, 1998.  The report shall 
151.12  examine at least the following areas: 
151.13     (1) whether teachers entering the workforce are prepared to 
151.14  meet the basic skills needs and higher learning needs of 
151.15  students under the state's results-oriented graduation rule; 
151.16     (2) identify teacher skills which are considered crucial to 
151.17  the success of students in a knowledge-based economy and 
151.18  determine if Minnesota colleges and universities are teaching 
151.19  those skills adequately to teachers; 
151.20     (3) examine the ability of Minnesota colleges and 
151.21  universities to provide training to existing teachers who are 
151.22  seeking further staff development experiences in order to meet 
151.23  the students' needs under the graduation rule; and 
151.24     (4) identify resources and organizations outside of the 
151.25  colleges and universities that can provide training and teaching 
151.26  experiences necessary to meet the needs of students under the 
151.27  graduation rule. 
151.28     Sec. 42.  [CLEARINGHOUSE OF BEST EDUCATIONAL PRACTICES.] 
151.29     (a) The department of children, families, and learning 
151.30  shall establish a clearinghouse of best educational practices 
151.31  and shared decision-making for improving student performance, 
151.32  particularly for at-risk students.  The clearinghouse must:  
151.33     (1) align with all current activities for best educational 
151.34  practice, shared decision-making, and the results-oriented 
151.35  graduation rule; 
151.36     (2) conduct research and collect information on the best 
152.1   educational practices affecting a school's management, 
152.2   operation, financing, personnel and instruction; 
152.3      (3) train quality intervention teams composed of highly 
152.4   qualified educators to assist a school's staff in working to 
152.5   improve student performance, particularly for at-risk students, 
152.6   by addressing a school's management, operation, financing, 
152.7   personnel and instruction practices; 
152.8      (4) develop and make available to interested school 
152.9   districts a model for an independent educational audit that 
152.10  evaluates a school's performance strengths and weaknesses and 
152.11  makes specific recommendations for reinforcing performance 
152.12  strengths and improving performance weaknesses cited in the 
152.13  audit; 
152.14     (5) using the comprehensive assessment framework under 
152.15  section 121.1115, subdivision 1b, paragraph (a), develop student 
152.16  and school performance indicators schools may use to reliably 
152.17  measure school improvement over time; and 
152.18     (6) provide staff development opportunities to assist 
152.19  teachers and other educators in integrating educational reform 
152.20  measures into a school's best practices. 
152.21     (b) The clearinghouse must assist school districts, at 
152.22  district request, and recommend methods to engage parents and 
152.23  communities in improving student performance, particularly for 
152.24  at-risk students. 
152.25     (c) The clearinghouse must collaborate with and may 
152.26  contract with community stakeholders, including the Minneapolis 
152.27  urban league, the St. Paul urban league, the urban coalition, 
152.28  the council on Asian-Pacific Minnesotans, the Chicano/Latino 
152.29  affairs council, the council on Black Minnesotans, the Indian 
152.30  affairs council, or the communities of color institute and 
152.31  Minneapolis Pathways at the University of Minnesota's Roy 
152.32  Wilkins center. 
152.33     Sec. 43.  [NOTIFICATION TO COMMISSIONER ON COOPERATIVE 
152.34  SPONSORSHIP.] 
152.35     A school district shall transmit to the commissioner of 
152.36  children, families, and learning information about each decision 
153.1   to deny a home school a cooperative sponsorship under state high 
153.2   school league rules or to otherwise deny a home school student 
153.3   an opportunity to participate in the district's extracurricular 
153.4   activities.  The school district shall transmit the information 
153.5   in the form and manner the commissioner requires.  
153.6      Sec. 44.  [COUNSELOR ASSESSMENT.] 
153.7      The department of children, families, and learning, in 
153.8   consultation with affected groups, shall conduct an assessment 
153.9   of the need for expanding the number of counselors in school 
153.10  districts.  As part of the assessment, the department shall 
153.11  consider recommended ratios and the costs of meeting these, 
153.12  alternative strategies for collaboration to provide counseling 
153.13  services to pupils especially in small districts, mechanisms to 
153.14  strengthen collaboration between school districts and local 
153.15  colleges and universities in providing information and 
153.16  experience to pupils, and suggestions for meeting the needs of 
153.17  pupils for counseling that is focused on academic and career 
153.18  needs and planning.  The department shall report its findings 
153.19  and recommendations to the education committees of the house and 
153.20  senate as part of its 2000-2001 biennial budget request. 
153.21     Sec. 45.  [YOUTH ATHLETIC DEMONSTRATION PROGRAM.] 
153.22     (a) A demonstration athletic grant program through special 
153.23  school district No. 1, Minneapolis, and the Minneapolis park and 
153.24  recreation board is established for children ages seven to 14 at 
153.25  Waite Park school.  The goal of the demonstration program is to 
153.26  develop a neighborhood-based athletic program that teaches 
153.27  sports fundamentals to students that will lead to their 
153.28  participation in high school level athletics.  The program shall 
153.29  be year-round and shall require both in-school and after-school 
153.30  participation by students.  A student who satisfactorily 
153.31  completes the program curriculum shall receive secondary course 
153.32  credit and the credit shall count towards the student's 
153.33  graduation requirements consistent with Minnesota Statutes, 
153.34  section 126.83. 
153.35     (b) The program shall be established at Waite Park school 
153.36  in Minneapolis where the school facility and park and recreation 
154.1   facility are jointly located and where the school district has 
154.2   established a neighborhood-based school for enrollment 
154.3   purposes.  The school district and the park and recreation board 
154.4   shall recruit at-risk students and those students who have not 
154.5   participated in current after-school park programs to 
154.6   participate in the demonstration project. 
154.7      (c) The program funds shall be used for recreational 
154.8   professionals at the park board to coordinate the program and 
154.9   licensed teachers employed in the district; internships for 
154.10  students at the University of Minnesota, Augsburg College, or 
154.11  other post-secondary institutions to work in the program; master 
154.12  coaches to train coaches; transportation costs; facilities' 
154.13  costs; and assistance to neighborhood park athletic councils.  
154.14     (d) The school district and the park board shall report to 
154.15  the commissioner of children, families, and learning on the 
154.16  outcome of the program.  Up to $10,000 of the appropriation in 
154.17  section 38, subdivision 2, may be used for the planning of a 
154.18  multipurpose community education and recreation center at a 
154.19  northeast park adjacent to a northeast school.  The commissioner 
154.20  shall report to the education committees of the legislature on 
154.21  the program and the advisability of creating a statewide program 
154.22  by March 15, 1999. 
154.23     Sec. 46.  [RESIDENTIAL ACADEMIES PROGRAM.] 
154.24     Subdivision 1.  [GRANT RECIPIENT.] The commissioner of 
154.25  children, families, and learning may award grants to public 
154.26  organizations or a collaborative of public and private 
154.27  organizations for capital and start-up costs for residential 
154.28  academies for students in grades 4 through 12 who desire to 
154.29  attend a residential academy, demonstrate an interest in 
154.30  learning and a potential for academic achievement, and who may: 
154.31     (1) perform or are at risk of performing below the academic 
154.32  performance level for students of the same age or ability; or 
154.33     (2) have experienced homelessness or an unstable home 
154.34  environment. 
154.35     Subd. 2.  [ENROLLMENT.] Enrollment is voluntary.  A parent 
154.36  or guardian, the student's county of residence, the student's 
155.1   school, a health care provider, or the judicial system may 
155.2   recommend a student for admission to an academy. 
155.3      Subd. 3.  [EDUCATIONAL PROGRAMMING.] The education program 
155.4   of a residential academy must be designed to: 
155.5      (1) increase students' academic achievement; 
155.6      (2) increase students' school attendance; 
155.7      (3) enable secondary students to meet the requirements of 
155.8   the state graduation rule; and 
155.9      (4) improve secondary students' transition to 
155.10  post-secondary education or the transition from school to work. 
155.11     Subd. 4.  [FUNDING.] (a) Education and social services 
155.12  funding shall follow each student from the student's school 
155.13  district or county of residence to the academy as provided by 
155.14  law. 
155.15     (b) The cost of residential care for a student may be 
155.16  covered under a sliding fee program based on student need. 
155.17     (c) An academy may receive any gift, grant, bequest, or 
155.18  devise. 
155.19     Subd. 5.  [AWARDING GRANTS.] The commissioner of children, 
155.20  families, and learning shall prescribe the form and manner of 
155.21  applications.  In awarding grants, the commissioner shall 
155.22  consider the quality of the education program, the academy's 
155.23  location, the composition of the academy's governance structure 
155.24  and board, the extent of the collaborative effort among various 
155.25  organizations, the extent of family and community involvement, 
155.26  and whether social services, after-school enrichment, and 
155.27  instruction throughout the entire year are provided.  The 
155.28  commissioner shall evaluate the components of the residential 
155.29  academy program described in this section and report to the 
155.30  education committees of the legislature by February 15, 2001. 
155.31     Sec. 47.  [COMMISSIONER OF CHILDREN, FAMILIES, AND 
155.32  LEARNING.] 
155.33     The commissioner of children, families, and learning shall 
155.34  designate a staff member as a resource person for gifted and 
155.35  talented programs to provide assistance to parents and school 
155.36  districts.  The commissioner shall pay all costs for that staff 
156.1   member out of existing department appropriations. 
156.2      Sec. 48.  [GOALS 2000.] 
156.3      School boards shall not be required to adopt specific 
156.4   provisions of the federal Goals 2000 program as state graduation 
156.5   standards. 
156.6      Sec. 49.  [RESIDENCY REQUIREMENT.] 
156.7      The magnet schools that are part of the western 
156.8   metropolitan education program must first enroll in the magnet 
156.9   schools those otherwise qualified students who reside within one 
156.10  of the nine participating school districts.  
156.11     Sec. 50.  [TASK FORCE ON TRANSITIONAL ISSUES.] 
156.12     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A task force on 
156.13  prekindergarten through grade 12 education governance structure 
156.14  is established to examine the transitional issues related to the 
156.15  repeal of the state board of education under section 39, 
156.16  paragraph (b). 
156.17     Subd. 2.  [TASK FORCE MEMBERS.] The task force is composed 
156.18  of one person appointed by the governor, one person appointed by 
156.19  the speaker of the house of representatives, and one person 
156.20  appointed by the subcommittee on committees of the senate 
156.21  committee on rules and administration.  The task force may 
156.22  select additional members to serve on the task force. 
156.23     Subd. 3.  [REPORT.] The task force shall submit a report on 
156.24  appropriate statutory changes, if any, to accomplish an orderly 
156.25  elimination of the state board to the chairs of the education 
156.26  committees of the legislature by December 15, 1998. 
156.27     Sec. 51.  [EXAMINATION OF PREKINDERGARTEN THROUGH GRADE 12 
156.28  EDUCATION GOVERNANCE.] 
156.29     Subdivision 1.  [MEMBERSHIP; EXPENSES.] The coalition for 
156.30  education reform and accountability panel established according 
156.31  to Laws 1993, chapter 224, article 1, section 35, subdivision 3, 
156.32  must update the membership and fill vacancies on the coalition 
156.33  according to the criteria established in Laws 1993, chapter 224, 
156.34  article 1, section 35, subdivision 2.  The department of 
156.35  children, families, and learning shall provide technical and 
156.36  other assistance to the panel. 
157.1      Subd. 2.  [STUDY.] The coalition for education reform and 
157.2   accountability must examine alternatives for restructuring the 
157.3   state's prekindergarten through grade 12 education system to 
157.4   optimize student achievement for all children by considering at 
157.5   least the following: 
157.6      (1) the roles of the legislature, executive branch, and 
157.7   local school boards in policymaking and administering the 
157.8   prekindergarten through grade 12 education system; 
157.9      (2) the best structure, excluding funding issues, to 
157.10  anticipate and accommodate the changing demographics of students 
157.11  and staff in the context of a dynamic education system; and 
157.12     (3) the best structure, excluding funding issues, to 
157.13  maintain a system adaptable to changing societal needs, that is 
157.14  flexible and innovative, and that places the interest of 
157.15  students first. 
157.16     The coalition shall make recommendations regarding 
157.17  appropriate parameters for the commissioner's rulemaking 
157.18  authority and the extent of necessary legislative direction and 
157.19  oversight of rulemaking activities. 
157.20     Subd. 3.  [REPORT.] The coalition must submit a report of 
157.21  its findings and recommendations to the education committees of 
157.22  the house and senate by December 15, 1998. 
157.23     Sec. 52.  [RECOMMENDATIONS ON A CENTRAL DEPOSITORY OF 
157.24  EMPLOYMENT DATA.] 
157.25     Subdivision 1.  [WORKING GROUP.] The board of teaching 
157.26  shall convene a working group to consider data management 
157.27  policies and appropriate organizing structures and operational 
157.28  practices for a central depository of data containing licensing 
157.29  and employment information about licensed education personnel 
157.30  employed in Minnesota school districts.  The working group must 
157.31  include one representative from each of the following 
157.32  organizations:  the state board of education; the department of 
157.33  children, families, and learning; the department of 
157.34  administration; the Minnesota school boards association; the 
157.35  Minnesota association of school administrators; the Minnesota 
157.36  association of school personnel administrators; the Minnesota 
158.1   education association; the Minnesota federation of teachers; the 
158.2   Minnesota association of secondary school principals; the 
158.3   Minnesota association of elementary school principals; and any 
158.4   other groups the board determines are relevant.  Expenses 
158.5   incurred by working group members must be reimbursed by the 
158.6   agencies and organizations they represent.  By December 1, 1998, 
158.7   the board shall submit to the education committees of the 
158.8   legislature the group's recommendations concerning establishing 
158.9   and operating a central depository of employment data on 
158.10  licensed education personnel, including recommended statutory 
158.11  changes.  The board shall convene the working group by June 15, 
158.12  1998. 
158.13     Subd. 2.  [ISSUES TO RESOLVE.] The working group must 
158.14  address at least the following: 
158.15     (1) to what extent a central database of employment history 
158.16  of licensed education personnel would be useful and how it would 
158.17  operate; 
158.18     (2) what kinds of post-secondary education records and 
158.19  employment-related data on licensed education personnel should 
158.20  be gathered and stored, including whether to gather and store 
158.21  complaints against licensed education personnel received by the 
158.22  board of teaching or the board of education, or disciplinary 
158.23  actions by the board of teaching or the board of education; 
158.24     (3) what mechanisms and policies should be developed for 
158.25  reporting state and school district data on licensed education 
158.26  personnel to ensure that stored data are timely and accurate and 
158.27  to ensure the integrity and privacy of the data; 
158.28     (4) what policies should govern the access of individuals 
158.29  and organizations to the data, including the release of 
158.30  personnel data to prospective school or school district 
158.31  employers; 
158.32     (5) what should be the extent of liability and immunity 
158.33  from liability for individuals and organizations that release 
158.34  data; and 
158.35     (6) whether guidelines consistent with this section for 
158.36  hiring education personnel would be useful to school districts. 
159.1      Sec. 53.  [RECOMMENDATIONS FOR ALTERNATIVE SCHOOL YEAR 
159.2   CALENDARS.] 
159.3      Subdivision 1.  [WORKING GROUP.] The commissioner of 
159.4   children, families and learning shall convene a working group to 
159.5   consider alternative school year calendars, including at least 
159.6   45-15 plans, four-quarter plans, quinmester plans, extended 
159.7   learning year plans, flexible all-year plans, and four-day week 
159.8   plans, and recommend to the legislature those alternative school 
159.9   year calendars that best allow school districts to meet the 
159.10  educational needs of their students.  The working group must 
159.11  include one representative from each of the following 
159.12  organizations:  the Minnesota school boards association; the 
159.13  Minnesota education association; the Minnesota federation of 
159.14  teachers; the Minnesota association of school administrators; 
159.15  the Minnesota association of secondary school principals; the 
159.16  Minnesota elementary school principals' association; the 
159.17  Minnesota association for pupil transportation; the Minnesota 
159.18  association for supervision and curriculum; the Minnesota 
159.19  congress of parents, teachers and students; the Minnesota state 
159.20  high school league; the Minnesota business partnership; and the 
159.21  Minnesota restaurant, hotel and resort associations.  By 
159.22  February 1, 1999, the commissioner shall submit the group's 
159.23  recommendations concerning the alternative school year calendars 
159.24  that best allow school districts to meet the educational needs 
159.25  of their students to the chairs of the education committees of 
159.26  the legislature. 
159.27     Subd. 2.  [ISSUE TO RESOLVE.] In recommending to the 
159.28  legislature the alternative school year calendars that best 
159.29  allow school districts to meet the educational needs of their 
159.30  students, the working group must at least consider: 
159.31     (1) how buildings and other facilities can be optimally 
159.32  used during an entire year; 
159.33     (2) what the optimal learning year schedule is of 
159.34  elementary and secondary disabled students and staff in schools 
159.35  and residential facilities; 
159.36     (3) how a district divides its students among its 
160.1   facilities to accommodate an alternative school year calendar; 
160.2      (4) how a district accommodates an alternative school year 
160.3   calendar in the context of the public employment labor relations 
160.4   act; 
160.5      (5) what parent involvement is required in establishing an 
160.6   alternative school year calendar; 
160.7      (6) how school staff is assigned in a district with fewer 
160.8   than all facilities adopting an alternative school year 
160.9   calendar; 
160.10     (7) how teachers' contracting rights are affected by an 
160.11  alternative school year calendar; 
160.12     (8) what educational standards and requirements apply to a 
160.13  district operating an alternative school year calendar; 
160.14     (9) what adjustments of attendance and apportionments of 
160.15  state aid are required; and addressed in an alternative school 
160.16  year calendar. 
160.17     Sec. 54.  [APPROPRIATIONS.] 
160.18     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
160.19  LEARNING.] The sums indicated in this section are appropriated 
160.20  from the general fund to the department of children, families, 
160.21  and learning for the fiscal years designated. 
160.22     Subd. 2.  [GRADUATION RULE RESOURCE GRANTS.] For graduation 
160.23  rule resource grants: 
160.24       $3,500,000     .....     1999
160.25     Of this amount, $200,000 is for a grant to the Council on 
160.26  Economic Education; $300,000 is to the Lola and Rudy Perpich 
160.27  Center for the Arts to develop arts-related performance packages 
160.28  as part of the state high school graduation rule under Minnesota 
160.29  Statutes, section 121.11, subdivision 7c; $90,000 is for a grant 
160.30  to Murphy's Landing; $40,000 is for a grant to the metropolitan 
160.31  multitype library consortium for copying and distributing 
160.32  Minnesota authors videocassette series; and $300,000 is for a 
160.33  grant to A Chance to Grow/New Visions to acquire the space and 
160.34  technology needed to establish, equip, and operate the Minnesota 
160.35  Learning Resource Center. 
160.36     The department shall consider grant proposals from the 
161.1   Minnesota Historical Society, the Richard Green Institute, 
161.2   Ironworld, parent or community technology specialists working or 
161.3   volunteering in schools, higher education institutions working 
161.4   in conjunction with a school district or consortium of school 
161.5   districts, and database access programs for public libraries and 
161.6   school media centers.  
161.7      This is a one-time appropriation. 
161.8      Subd. 3.  [RESIDENTIAL ACADEMIES.] For grants for 
161.9   residential academies: 
161.10      $12,000,000     .....     1999
161.11     Subd. 4.  [YOUTH ATHLETIC DEMONSTRATION PROGRAM.] For a 
161.12  grant to special school district No. 1, Minneapolis, and the 
161.13  Minneapolis park and recreation board to establish a youth 
161.14  athletic demonstration program under section 26: 
161.15       $  100,000     .....     1999 
161.16     Subd. 5.  [UNLIMITED POSSIBILITIES PLAN.] For a grant to a 
161.17  nonprofit agency representing the private alternative schools: 
161.18       $  100,000     .....     1999 
161.19     The purpose of the grant is to support the Unlimited 
161.20  Possibilities Plan to assist student transition from secondary 
161.21  school to college or gainful employment including mentoring 
161.22  programs, post-secondary training, career exploration, and 
161.23  placement services.  The grant recipient must match state funds 
161.24  with an equal amount of funds raised from nonpublic sources.  
161.25     This appropriation does not cancel but is available until 
161.26  June 30, 2000. 
161.27     Subd. 6.  [CLEARINGHOUSE OF BEST EDUCATIONAL 
161.28  PRACTICES.] For a clearinghouse of best educational practices 
161.29  according to section 19: 
161.30      $2,000,000     .....     1999
161.31     Of this amount, $500,000 is for a contract with an 
161.32  institution of higher education for the purposes of Minnesota 
161.33  Statutes, section 121.1115, subdivisions 1b and 1c.  
161.34     Subd. 7.  [MODEL DISTANCE LEARNING GRANT; LAKE OF THE 
161.35  WOODS.] For a grant to independent school district No. 390, Lake 
161.36  of the Woods, for developing a model distance learning program: 
162.1        $  250,000     .....     1999 
162.2      The model program must address students' curriculum needs 
162.3   for vocational programs, advanced collegiate level courses, 
162.4   gifted and talented programming, programming for students with 
162.5   disabilities, and other areas of programming made more difficult 
162.6   because of the school district's geographic isolation. 
162.7      Sec. 55.  [REVISOR'S INSTRUCTION.] 
162.8      In the next and subsequent editions of Minnesota Statutes 
162.9   and Minnesota Rules, all references to the state board of 
162.10  education shall be changed to the commissioner of children, 
162.11  families, and learning.  The changes made by the revisor shall 
162.12  be effective December 31, 1999. 
162.13     Sec. 56.  [REPEALER.] 
162.14     Minnesota Statutes 1996, section 121.02, is repealed 
162.15  effective December 31, 1999. 
162.16     Sec. 57.  [EFFECTIVE DATES.] 
162.17     (a) Sections 5, 28, and 33 are effective for the 1998-1999 
162.18  school year and thereafter. 
162.19     (b) Section 9 is effective for the profile of learning of 
162.20  the graduation rule authorized under Minnesota Statutes, section 
162.21  121.11, subdivision 7c, and adopted after January 1, 1998. 
162.22     (c) Sections 7, 34, 43, 50, 51, and 52 are effective the 
162.23  day following final enactment. 
162.24     Sections 14 to 27 are effective December 31, 1999. 
162.25                             ARTICLE 6 
162.26                      EDUCATION POLICY ISSUES 
162.27     Section 1.  Minnesota Statutes 1996, section 120.17, 
162.28  subdivision 7a, is amended to read: 
162.29     Subd. 7a.  [ATTENDANCE AT SCHOOL FOR THE DISABLED.] 
162.30  Responsibility for special instruction and services for a 
162.31  visually disabled or hearing impaired child attending the 
162.32  Minnesota state academy for the deaf or the Minnesota state 
162.33  academy for the blind shall be determined in the following 
162.34  manner: 
162.35     (a) The legal residence of the child shall be the school 
162.36  district in which the child's parent or guardian resides. 
163.1      (b) When it is determined pursuant to section 128A.05, 
163.2   subdivision 1 or 2, that the child is entitled to attend either 
163.3   school, the state board of the Faribault academies shall provide 
163.4   the appropriate educational program for the child.  The state 
163.5   board of the Faribault academies shall make a tuition charge to 
163.6   the child's district of residence for the cost of providing the 
163.7   program.  The amount of tuition charged shall not exceed the 
163.8   basic revenue of the district for that child, for the amount of 
163.9   time the child is in the program.  For purposes of this 
163.10  subdivision, "basic revenue" has the meaning given it in section 
163.11  124A.22, subdivision 2.  The district of the child's residence 
163.12  shall pay the tuition and may claim general education aid for 
163.13  the child.  Tuition received by the state board of the Faribault 
163.14  academies, except for tuition received under clause (c), shall 
163.15  be deposited in the state treasury as provided in clause (g). 
163.16     (c) In addition to the tuition charge allowed in clause 
163.17  (b), the academies may charge the child's district of residence 
163.18  for the academy's unreimbursed cost of providing an 
163.19  instructional aide assigned to that child, if that aide is 
163.20  required by the child's individual education plan.  Tuition 
163.21  received under this clause must be used by the academies to 
163.22  provide the required service. 
163.23     (d) When it is determined that the child can benefit from 
163.24  public school enrollment but that the child should also remain 
163.25  in attendance at the applicable school, the school district 
163.26  where the institution is located shall provide an appropriate 
163.27  educational program for the child and shall make a tuition 
163.28  charge to the state board of the Faribault academies for the 
163.29  actual cost of providing the program, less any amount of aid 
163.30  received pursuant to section 124.32.  The state board of the 
163.31  Faribault academies shall pay the tuition and other program 
163.32  costs including the unreimbursed transportation costs.  Aids for 
163.33  children with a disability shall be paid to the district 
163.34  providing the special instruction and services.  Special 
163.35  transportation shall be provided by the district providing the 
163.36  educational program and the state shall reimburse such district 
164.1   within the limits provided by law.  
164.2      (e) Notwithstanding the provisions of clauses (b) and (d), 
164.3   the state board of the Faribault academies may agree to make a 
164.4   tuition charge for less than the amount specified in clause (b) 
164.5   for pupils attending the applicable school who are residents of 
164.6   the district where the institution is located and who do not 
164.7   board at the institution, if that district agrees to make a 
164.8   tuition charge to the state board of the Faribault academies for 
164.9   less than the amount specified in clause (d) for providing 
164.10  appropriate educational programs to pupils attending the 
164.11  applicable school. 
164.12     (f) Notwithstanding the provisions of clauses (b) and (d), 
164.13  the state board of the Faribault academies may agree to supply 
164.14  staff from the Minnesota state academy for the deaf and the 
164.15  Minnesota state academy for the blind to participate in the 
164.16  programs provided by the district where the institutions are 
164.17  located when the programs are provided to students in attendance 
164.18  at the state schools.  
164.19     (g) On May 1 of each year, the state board of the Faribault 
164.20  academies shall count the actual number of Minnesota resident 
164.21  kindergarten and elementary students and the actual number of 
164.22  Minnesota resident secondary students enrolled and receiving 
164.23  education services at the Minnesota state academy for the deaf 
164.24  and the Minnesota state academy for the blind.  The state board 
164.25  of the Faribault academies shall deposit in the state treasury 
164.26  an amount equal to all tuition received less:  
164.27     (1) the total number of students on May 1 less 175, times 
164.28  the ratio of the number of kindergarten and elementary students 
164.29  to the total number of students on May 1, times the general 
164.30  education formula allowance; plus 
164.31     (2) the total number of students on May 1 less 175, times 
164.32  the ratio of the number of secondary students on May 1 to the 
164.33  total number of students on May 1, times 1.3, times the general 
164.34  education formula allowance.  
164.35     (h) The sum provided by the calculation in clause (g), 
164.36  subclauses (1) and (2), must be deposited in the state treasury 
165.1   and credited to the general operation account of the academy for 
165.2   the deaf and the academy for the blind.  
165.3      (i) There is annually appropriated to the department of 
165.4   children, families, and learning for the Faribault academies the 
165.5   tuition amounts received and credited to the general operation 
165.6   account of the academies under this section.  A balance in an 
165.7   appropriation under this paragraph does not cancel but is 
165.8   available in successive fiscal years. 
165.9      Sec. 2.  Minnesota Statutes 1996, section 121.14, is 
165.10  amended to read: 
165.11     121.14 [RECOMMENDATIONS; BUDGET.] 
165.12     The state board and the commissioner of children, families, 
165.13  and learning shall recommend to the governor and legislature 
165.14  such modification and unification of laws relating to the state 
165.15  system of education as shall make those laws more readily 
165.16  understood and more effective in execution.  The commissioner of 
165.17  children, families, and learning shall prepare a biennial 
165.18  education budget which shall be submitted to the governor and 
165.19  legislature, such budget to contain a complete statement of 
165.20  finances pertaining to the maintenance of the state department 
165.21  and to the distribution of state aid.  
165.22     Sec. 3.  Minnesota Statutes 1996, section 121.148, 
165.23  subdivision 3, is amended to read: 
165.24     Subd. 3.  [NEGATIVE REVIEW AND COMMENT.] (a) If the 
165.25  commissioner submits a negative review and comment for a 
165.26  proposal according to section 121.15, the following steps must 
165.27  be taken: 
165.28     (1) the commissioner must notify the school board of the 
165.29  proposed negative review and comment and schedule a public 
165.30  meeting within 60 days of the notification within that school 
165.31  district to discuss the proposed negative review and comment on 
165.32  the school facility; and 
165.33     (2) the school board shall appoint an advisory task force 
165.34  of up to five members to advise the school board and the 
165.35  commissioner on the advantages, disadvantages, and alternatives 
165.36  to the proposed facility at the public meeting.  One member of 
166.1   the advisory task force must also be a member of the county 
166.2   facilities group. 
166.3      (b) After attending the public meeting, the commissioner 
166.4   shall reconsider the proposal.  If the commissioner submits a 
166.5   negative review and comment, the school board may appeal that 
166.6   decision to the state board of education under chapter 14.  The 
166.7   state board of education may either uphold the commissioner's 
166.8   negative review and comment or instruct the commissioner to 
166.9   submit a positive or unfavorable review and comment on the 
166.10  proposed facility. 
166.11     (c) A school board may not proceed with construction if the 
166.12  state board of education upholds the commissioner's negative 
166.13  review and comment is upheld or if the commissioner's negative 
166.14  review and comment is not appealed. 
166.15     Sec. 4.  Minnesota Statutes 1996, section 121.16, is 
166.16  amended by adding a subdivision to read: 
166.17     Subd. 4.  [UNIFORM SYSTEM OF RECORDS AND ACCOUNTING.] The 
166.18  commissioner of children, families, and learning shall prepare a 
166.19  uniform system of records for public schools and require reports 
166.20  from superintendents and principals of schools, teachers, school 
166.21  officers, and the chief officers of public and other educational 
166.22  institutions to give such facts as it may deem of public value.  
166.23  All reports required of school districts by the commissioner 
166.24  shall be in conformance with the uniform financial accounting 
166.25  and reporting system.  With the cooperation of the state 
166.26  auditor, the commissioner shall establish and carry into effect 
166.27  a uniform system of accounting by public school officers and 
166.28  shall have authority to supervise and examine the accounts and 
166.29  other records of all public schools. 
166.30     Sec. 5.  Minnesota Statutes 1996, section 121.16, is 
166.31  amended by adding a subdivision to read: 
166.32     Subd. 5.  [GENERAL SUPERVISION OVER EDUCATIONAL AGENCIES.] 
166.33  The commissioner of children, families, and learning shall adopt 
166.34  goals for and exercise general supervision over public schools 
166.35  and public educational agencies in the state, classify and 
166.36  standardize public elementary and secondary schools, and prepare 
167.1   for them outlines and suggested courses of study.  The 
167.2   commissioner shall develop a plan to attain the adopted goals.  
167.3   The commissioner may recognize educational accrediting agencies 
167.4   for the sole purposes of sections 120.101, 120.102, and 120.103. 
167.5      Sec. 6.  Minnesota Statutes 1996, section 121.16, is 
167.6   amended by adding a subdivision to read: 
167.7      Subd. 6.  [ADMINISTRATIVE RULES.] The commissioner may 
167.8   adopt new rules and amend them or amend any existing rules only 
167.9   under specific authority.  The commissioner may repeal any 
167.10  existing rules.  Notwithstanding the provisions of section 
167.11  14.05, subdivision 4, the commissioner may grant a variance to 
167.12  rules adopted by the commissioner upon application by a school 
167.13  district for purposes of implementing experimental programs in 
167.14  learning or school management.  This subdivision shall not 
167.15  prohibit the commissioner from making technical changes or 
167.16  corrections to adopted rules. 
167.17     Sec. 7.  Minnesota Statutes 1996, section 121.16, is 
167.18  amended by adding a subdivision to read: 
167.19     Subd. 7.  [LICENSURE RULES.] The commissioner may make 
167.20  rules relating to licensure of school personnel not licensed by 
167.21  the board of teaching. 
167.22     Sec. 8.  Minnesota Statutes 1996, section 121.16, is 
167.23  amended by adding a subdivision to read: 
167.24     Subd. 8.  [GENERAL EDUCATION DEVELOPMENT TESTS RULES.] The 
167.25  commissioner may amend rules to reflect changes in the national 
167.26  minimum standard score for passing the general education 
167.27  development (GED) tests. 
167.28     Sec. 9.  Minnesota Statutes 1996, section 121.16, is 
167.29  amended by adding a subdivision to read: 
167.30     Subd. 9.  [UNIFORM FORMS FOR STATE EXAMINATIONS.] Upon the 
167.31  request of any superintendent of any public or private school 
167.32  teaching high school courses in the state, the commissioner 
167.33  shall designate or prepare uniform forms for state examinations 
167.34  in each high school subject during the month of May of each 
167.35  year; the request shall be in writing and delivered to the 
167.36  commissioner before January 1 of that year. 
168.1      Sec. 10.  Minnesota Statutes 1996, section 121.16, is 
168.2   amended by adding a subdivision to read: 
168.3      Subd. 10.  [EVENING SCHOOLS.] The commissioner shall 
168.4   exercise general supervision over the public evening schools, 
168.5   adult education programs, and summer programs. 
168.6      Sec. 11.  Minnesota Statutes 1996, section 121.16, is 
168.7   amended by adding a subdivision to read: 
168.8      Subd. 11.  [TEACHER RULE VARIANCES.] Notwithstanding any 
168.9   law to the contrary, and only upon receiving the agreement of 
168.10  the state board of teaching, the commissioner of children, 
168.11  families, and learning may grant a variance to rules governing 
168.12  licensure of teachers for those teachers licensed by the board 
168.13  of teaching.  The commissioner may grant a variance, without the 
168.14  agreement of the board of teaching, to rules adopted by the 
168.15  commissioner governing licensure of teachers for those teachers 
168.16  the commissioner licenses. 
168.17     Sec. 12.  Minnesota Statutes 1996, section 121.16, is 
168.18  amended by adding a subdivision to read: 
168.19     Subd. 12.  [SCHOOL LUNCH PROGRAM; REVOLVING FUND.] The 
168.20  commissioner of finance shall establish for the commissioner of 
168.21  children, families, and learning a revolving fund for deposit of 
168.22  storage and handling charges paid by recipients of donated foods 
168.23  shipped by the school lunch section of the department of 
168.24  children, families, and learning.  These funds are to be used 
168.25  only to pay storage and related charges as they are incurred for 
168.26  United States Department of Agriculture foods. 
168.27     The commissioner of finance shall also establish a 
168.28  revolving fund for the department of children, families, and 
168.29  learning to deposit charges paid by recipients of processed 
168.30  commodities and for any authorized appropriation transfers for 
168.31  the purpose of this subdivision.  These funds are to be used 
168.32  only to pay for commodity processing and related charges as they 
168.33  are incurred using United States Department of Agriculture 
168.34  donated commodities. 
168.35     Sec. 13.  Minnesota Statutes 1996, section 121.1601, 
168.36  subdivision 2, is amended to read: 
169.1      Subd. 2.  [COORDINATION.] The commissioner shall coordinate 
169.2   the office activities under subdivision 1 with new or existing 
169.3   department and state board of education efforts to accomplish 
169.4   school desegregation/integration.  The commissioner may request 
169.5   information or assistance from, or contract with, any state or 
169.6   local agency or officer, local unit of government, or recognized 
169.7   expert to assist the commissioner in performing the activities 
169.8   described in subdivision 1.  
169.9      Sec. 14.  Minnesota Statutes 1996, section 122.23, 
169.10  subdivision 2b, is amended to read: 
169.11     Subd. 2b.  [ORDERLY REDUCTION PLAN.] As part of the 
169.12  resolution required by subdivision 2, the school board must 
169.13  prepare a plan for the orderly reduction of the membership of 
169.14  the board to six or seven members and a plan for the 
169.15  establishment or dissolution of election districts.  The plan 
169.16  may shorten any or all terms of incumbent board members to 
169.17  achieve the orderly reduction.  The plan must be submitted to 
169.18  the secretary of state for review and comment. 
169.19     Sec. 15.  Minnesota Statutes 1996, section 122.23, 
169.20  subdivision 6, is amended to read: 
169.21     Subd. 6.  The commissioner shall, upon receipt of a plat, 
169.22  forthwith examine it and approve, modify or reject it.  The 
169.23  commissioner shall also approve or reject any proposal contained 
169.24  in the resolution or petition regarding the disposition of the 
169.25  bonded debt of the component districts.  If the plat shows the 
169.26  boundaries of proposed separate election districts and if the 
169.27  commissioner modifies the plat, the commissioner shall also 
169.28  modify the boundaries of the proposed separate election 
169.29  districts.  The commissioner shall conduct a hearing public 
169.30  meeting at the nearest county seat in the area upon reasonable 
169.31  notice to the affected districts and county boards if requested 
169.32  within 20 days after submission of the plat.  Such a hearing The 
169.33  public meeting may be requested by the board of any affected 
169.34  district, a county board of commissioners, or the petition of 20 
169.35  resident voters living within the area proposed for 
169.36  consolidation.  The commissioner shall endorse on the plat 
170.1   action regarding any proposal for the disposition of the bonded 
170.2   debt of component districts and the reasons for these actions 
170.3   and within after a minimum of 20 days, but no more than 60 days 
170.4   of the date of the receipt of the plat, the commissioner shall 
170.5   return it to the county auditor who submitted it.  The 
170.6   commissioner shall furnish a copy of that plat, and the 
170.7   supporting statement and its endorsement to the auditor of each 
170.8   county containing any land area of the proposed new district.  
170.9   If land area of a particular county was included in the plat, as 
170.10  submitted by the county auditor, and all of such land area is 
170.11  excluded in the plat as modified and approved, the commissioner 
170.12  shall also furnish a copy of the modified plat, supporting 
170.13  statement, and any endorsement to the auditor of such county. 
170.14     Sec. 16.  Minnesota Statutes 1996, section 123.34, 
170.15  subdivision 9, is amended to read: 
170.16     Subd. 9.  [SUPERINTENDENT.] All districts maintaining a 
170.17  classified secondary school shall employ a superintendent who 
170.18  shall be an ex officio nonvoting member of the school board.  
170.19  The authority for selection and employment of a superintendent 
170.20  shall be vested in the school board in all cases.  An individual 
170.21  employed by a school board as a superintendent shall have an 
170.22  initial employment contract for a period of time no longer than 
170.23  three years from the date of employment.  Any subsequent 
170.24  employment contract must not exceed a period of three years.  A 
170.25  school board, at its discretion, may or may not renew an 
170.26  employment contract.  A school board shall not, by action or 
170.27  inaction, extend the duration of an existing employment 
170.28  contract.  Beginning 365 days prior to the expiration date of an 
170.29  existing employment contract, a school board may negotiate and 
170.30  enter into a subsequent employment contract to take effect upon 
170.31  the expiration of the existing contract.  A subsequent contract 
170.32  shall be contingent upon the employee completing the terms of an 
170.33  existing contract.  If a contract between a school board and a 
170.34  superintendent is terminated prior to the date specified in the 
170.35  contract, the school board may not enter into another 
170.36  superintendent contract with that same individual that has a 
171.1   term that extends beyond the date specified in the terminated 
171.2   contract.  A school board may terminate a superintendent during 
171.3   the term of an employment contract for any of the grounds 
171.4   specified in section 125.12, subdivision 6 or 8.  A 
171.5   superintendent shall not rely upon an employment contract with a 
171.6   school board to assert any other continuing contract rights in 
171.7   the position of superintendent under section 125.12.  
171.8   Notwithstanding the provisions of sections 122.532, 122.541, 
171.9   125.12, subdivision 6a or 6b, or any other law to the contrary, 
171.10  no individual shall have a right to employment as a 
171.11  superintendent based on order of employment in any district.  If 
171.12  two or more school districts enter into an agreement for the 
171.13  purchase or sharing of the services of a superintendent, the 
171.14  contracting districts have the absolute right to select one of 
171.15  the individuals employed to serve as superintendent in one of 
171.16  the contracting districts and no individual has a right to 
171.17  employment as the superintendent to provide all or part of the 
171.18  services based on order of employment in a contracting district. 
171.19  The superintendent of a district shall perform the following:  
171.20     (1) visit and supervise the schools in the district, report 
171.21  and make recommendations about their condition when advisable or 
171.22  on request by the board; 
171.23     (2) recommend to the board employment and dismissal of 
171.24  teachers; 
171.25     (3) superintend school grading practices and examinations 
171.26  for promotions; 
171.27     (4) make reports required by the commissioner of children, 
171.28  families, and learning; and 
171.29     (5) by January 10, submit an annual report to the 
171.30  commissioner in a manner prescribed by the commissioner, in 
171.31  consultation with school districts, identifying the expenditures 
171.32  that the district requires to ensure an 80 percent and a 90 
171.33  percent student passage rate on the basic standards test taken 
171.34  in the eighth grade, identifying the amount of expenditures that 
171.35  the district requires to ensure a 99 percent student passage 
171.36  rate on the basic standards test by 12th grade, and how much the 
172.1   district is cross-subsidizing programs with special education, 
172.2   compensatory, and general education revenue; and 
172.3      (6) perform other duties prescribed by the board. 
172.4      Sec. 17.  Minnesota Statutes 1996, section 123.35, 
172.5   subdivision 19a, is amended to read: 
172.6      Subd. 19a.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
172.7   SUPPORT.] (a) No school district shall be required by any type 
172.8   of formal or informal agreement except an agreement to provide 
172.9   building space according to paragraph (f), including a joint 
172.10  powers agreement, or membership in any cooperative unit defined 
172.11  in subdivision 19b, paragraph (d), to participate in or provide 
172.12  financial support for the purposes of the agreement for a time 
172.13  period in excess of one four fiscal year years, or the time 
172.14  period set forth in this subdivision.  Any agreement, part of an 
172.15  agreement, or other type of requirement to the contrary is void. 
172.16     (b) This subdivision shall not affect the continued 
172.17  liability of a school district for its share of bonded 
172.18  indebtedness or other debt incurred as a result of any agreement 
172.19  before July 1, 1993.  The school district is liable only until 
172.20  the obligation or debt is discharged and only according to the 
172.21  payment schedule in effect on July 1, 1993, except that the 
172.22  payment schedule may be altered for the purpose of restructuring 
172.23  debt or refunding bonds outstanding on July 1, 1993, if the 
172.24  annual payments of the school district are not increased and if 
172.25  the total obligation of the school district for its share of 
172.26  outstanding bonds or other debt is not increased. 
172.27     (c) To cease participating in or providing financial 
172.28  support for any of the services or activities relating to the 
172.29  agreement or to terminate participation in the agreement, the 
172.30  school board shall adopt a resolution and notify other parties 
172.31  to the agreement of its decision on or before February 1 of any 
172.32  year.  The cessation or withdrawal shall be effective June 30 of 
172.33  the same year except that for a member of an education district 
172.34  organized under sections 122.91 to 122.95 or an intermediate 
172.35  district organized under chapter 136D, cessation or withdrawal 
172.36  shall be effective June 30 of the following fiscal year.  At the 
173.1   option of the school board, cessation or withdrawal may be 
173.2   effective June 30 of the following fiscal year for a district 
173.3   participating in any type of agreement.  
173.4      (d) Before issuing bonds or incurring other debt, the 
173.5   governing body responsible for implementing the agreement shall 
173.6   adopt a resolution proposing to issue bonds or incur other debt 
173.7   and the proposed financial effect of the bonds or other debt 
173.8   upon each participating district.  The resolution shall be 
173.9   adopted within a time sufficient to allow the school board to 
173.10  adopt a resolution within the time permitted by this paragraph 
173.11  and to comply with the statutory deadlines set forth in sections 
173.12  122.895, 125.12, and 125.17.  The governing body responsible for 
173.13  implementing the agreement shall notify each participating 
173.14  school board of the contents of the resolution.  Within 120 days 
173.15  of receiving the resolution of the governing body, the school 
173.16  board of the participating district shall adopt a resolution 
173.17  stating: 
173.18     (1) its concurrence with issuing bonds or incurring other 
173.19  debt; 
173.20     (2) its intention to cease participating in or providing 
173.21  financial support for the service or activity related to the 
173.22  bonds or other debt; or 
173.23     (3) its intention to terminate participation in the 
173.24  agreement. 
173.25     A school board adopting a resolution according to clause 
173.26  (1) is liable for its share of bonded indebtedness or other debt 
173.27  as proposed by the governing body implementing the agreement.  A 
173.28  school board adopting a resolution according to clause (2) is 
173.29  not liable for the bonded indebtedness or other debt, as 
173.30  proposed by the governing body, related to the services or 
173.31  activities in which the district ceases participating or 
173.32  providing financial support.  A school board adopting a 
173.33  resolution according to clause (3) is not liable for the bonded 
173.34  indebtedness or other debt proposed by the governing body 
173.35  implementing the agreement. 
173.36     (e) After July 1, 1993, a district is liable according to 
174.1   paragraph (d) for its share of bonded indebtedness or other debt 
174.2   incurred by the governing body implementing the agreement to the 
174.3   extent that the bonds or other debt are directly related to the 
174.4   services or activities in which the district participates or for 
174.5   which the district provides financial support.  The district has 
174.6   continued liability only until the obligation or debt is 
174.7   discharged and only according to the payment schedule in effect 
174.8   at the time the governing body implementing the agreement 
174.9   provides notice to the school board, except that the payment 
174.10  schedule may be altered for the purpose of refunding the 
174.11  outstanding bonds or restructuring other debt if the annual 
174.12  payments of the district are not increased and if the total 
174.13  obligation of the district for the outstanding bonds or other 
174.14  debt is not increased. 
174.15     (f) A school district that is a member of a cooperative 
174.16  unit as defined in subdivision 19b, paragraph (d), may obligate 
174.17  itself to participate in and provide financial support for an 
174.18  agreement with a cooperative unit to provide school building 
174.19  space for a term not to exceed two years with an option on the 
174.20  part of the district to renew for an additional two years. 
174.21     (g) Notwithstanding any limitations imposed under this 
174.22  subdivision, a school district may, according to section 123.36, 
174.23  subdivision 10, enter into a lease of all or a portion of a 
174.24  schoolhouse that is not needed for school purposes, including, 
174.25  but not limited to, a lease with a term of more than one year. 
174.26     Sec. 18.  Minnesota Statutes 1996, section 123.3514, is 
174.27  amended by adding a subdivision to read: 
174.28     Subd. 4f.  [PARTICIPATION IN HIGH SCHOOL 
174.29  ACTIVITIES.] Enrolling in a course under this section shall not, 
174.30  by itself, prohibit a pupil from participating in activities 
174.31  sponsored by the pupil's high school. 
174.32     Sec. 19.  Minnesota Statutes 1996, section 123.39, 
174.33  subdivision 1, is amended to read: 
174.34     Subdivision 1.  The board may provide for the 
174.35  transportation of pupils to and from school and for any other 
174.36  purpose.  The board may also provide for the transportation of 
175.1   pupils to schools in other districts for grades and departments 
175.2   not maintained in the district, including high school, at the 
175.3   expense of the district, when funds are available therefor and 
175.4   if agreeable to the district to which it is proposed to 
175.5   transport the pupils, for the whole or a part of the school 
175.6   year, as it may deem advisable, and subject to its rules.  In 
175.7   any school district, the board shall arrange for the attendance 
175.8   of all pupils living two miles or more from the school, except 
175.9   pupils whose transportation privileges have been revoked under 
175.10  section 123.805, subdivision 1, clause (6), or 123.7991, 
175.11  paragraph (b), or whose privileges have been voluntarily 
175.12  surrendered under subdivision 1a, through suitable provision for 
175.13  transportation or through the boarding and rooming of the pupils 
175.14  who may be more economically and conveniently provided for by 
175.15  that means.  Arrangements for attendance may include a 
175.16  requirement that parents or guardians request transportation 
175.17  before it is provided.  The board shall provide transportation 
175.18  to and from the home of a child with a disability not yet 
175.19  enrolled in kindergarten when special instruction and services 
175.20  under sections 120.17 and 120.1701 are provided in a location 
175.21  other than in the child's home.  When transportation is 
175.22  provided, scheduling of routes, establishment of the location of 
175.23  bus stops, manner and method of transportation, control and 
175.24  discipline of school children and any other matter relating 
175.25  thereto shall be within the sole discretion, control, and 
175.26  management of the school board.  The district may provide for 
175.27  the transportation of pupils or expend a reasonable amount for 
175.28  room and board of pupils whose attendance at school can more 
175.29  economically and conveniently be provided for by that means or 
175.30  who attend school in a building rented or leased by a district 
175.31  within the confines of an adjacent district. 
175.32     Sec. 20.  Minnesota Statutes 1996, section 123.39, is 
175.33  amended by adding a subdivision to read: 
175.34     Subd. 1a.  [VOLUNTARY SURRENDER OF TRANSPORTATION 
175.35  PRIVILEGES.] The parent or guardian of a secondary student may 
175.36  voluntarily surrender the secondary student's to and from school 
176.1   transportation privileges granted under subdivision 1. 
176.2      Sec. 21.  Minnesota Statutes 1996, section 123.805, 
176.3   subdivision 1, is amended to read: 
176.4      Subdivision 1.  [COMPREHENSIVE POLICY.] Each school 
176.5   district shall develop and implement a comprehensive, written 
176.6   policy governing pupil transportation safety, including 
176.7   transportation of nonpublic school students, when applicable.  
176.8   The policy shall, at minimum, contain: 
176.9      (1) provisions for appropriate student bus safety training 
176.10  under section 123.7991; 
176.11     (2) rules governing student conduct on school buses and in 
176.12  school bus loading and unloading areas; 
176.13     (3) a statement of parent or guardian responsibilities 
176.14  relating to school bus safety; 
176.15     (4) provisions for notifying students and parents or 
176.16  guardians of their responsibilities and the rules; 
176.17     (5) an intradistrict system for reporting school bus 
176.18  accidents or misconduct, and a system for dealing with local law 
176.19  enforcement officials in cases of criminal conduct on a school 
176.20  bus, and a system for reporting accidents, crimes, incidents of 
176.21  misconduct, and bus driver dismissals to the department of 
176.22  public safety under section 169.452; 
176.23     (6) a discipline policy to address violations of school bus 
176.24  safety rules, including procedures for revoking a student's bus 
176.25  riding privileges in cases of serious or repeated misconduct; 
176.26     (7) a system for integrating school bus misconduct records 
176.27  with other discipline records; 
176.28     (8) a statement of bus driver duties; 
176.29     (9) planned expenditures for safety activities under 
176.30  section 123.799 and, where applicable, provisions governing bus 
176.31  monitor qualifications, training, and duties; 
176.32     (10) rules governing the use and maintenance of type III 
176.33  vehicles, drivers of type III vehicles, qualifications to drive 
176.34  a type III vehicle, qualifications for a type III vehicle and 
176.35  the circumstances under which a student may be transported in a 
176.36  type III vehicle; 
177.1      (11) operating rules and procedures; 
177.2      (12) provisions for annual bus driver in-service training 
177.3   and evaluation; 
177.4      (13) emergency procedures; 
177.5      (14) a system for maintaining and inspecting equipment; 
177.6      (15) requirements of the school district, if any, that 
177.7   exceed state law minimum requirements for school bus operations; 
177.8   and 
177.9      (16) requirements for basic first aid training, which shall 
177.10  include the Heimlich maneuver and procedures for dealing with 
177.11  obstructed airways, shock, bleeding, and seizures. 
177.12     School districts are encouraged to use the model policy 
177.13  developed by the Minnesota school boards association, the 
177.14  department of public safety, and the department of children, 
177.15  families, and learning, as well as the current edition of the 
177.16  "National Standards for School Buses and Operations" published 
177.17  by the National Safety Council, in developing safety policies.  
177.18  Each district shall submit a copy of its policy under this 
177.19  subdivision to the school bus safety advisory committee no later 
177.20  than August 1, 1994.  Each district shall review its policy 
177.21  annually and make appropriate amendments, which must be 
177.22  submitted to the school bus safety advisory committee within one 
177.23  month of approval by the school board. 
177.24     Sec. 22.  Minnesota Statutes 1996, section 124.078, is 
177.25  amended to read: 
177.26     124.078 [PERMANENT SCHOOL FUND ADVISORY COMMITTEE.] 
177.27     A state permanent school fund advisory committee is 
177.28  established to advise the department of natural resources on the 
177.29  management of permanent school fund land, which is held in trust 
177.30  for the school districts of the state.  The advisory committee 
177.31  shall consist of the following persons or their designees:  the 
177.32  chairs of the education committees of the legislature, the 
177.33  chairs of the senate committee on finance and house committee on 
177.34  ways and means, the commissioner of children, families, and 
177.35  learning, one superintendent from a nonmetropolitan district, 
177.36  and one superintendent from a metropolitan area district.  The 
178.1   school district superintendents shall be appointed by the 
178.2   commissioner of children, families, and learning.  
178.3      The advisory committee shall review the policies of the 
178.4   department of natural resources and current statutes on 
178.5   management of school trust fund lands at least semiannually and 
178.6   shall recommend necessary changes in statutes, policy, and 
178.7   implementation in order to ensure provident utilization of the 
178.8   permanent school fund lands.  
178.9      Sec. 23.  Minnesota Statutes 1996, section 124.225, 
178.10  subdivision 7f, is amended to read: 
178.11     Subd. 7f.  [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 
178.12  district shall reserve an amount equal to the greater of $500 or 
178.13  $1.50 times the number of fund balance pupil units, for that 
178.14  school year to provide student transportation safety programs 
178.15  under section 123.799.  This revenue may only be used if the 
178.16  district complies with the reporting requirements of section 
178.17  123.7991, 123.805, 169.452, 169.4582, or 171.321, subdivision 5. 
178.18     Sec. 24.  Minnesota Statutes 1996, section 124.225, 
178.19  subdivision 8m, is amended to read: 
178.20     Subd. 8m.  [TRANSPORTATION SAFETY AID.] A district's 
178.21  transportation safety aid equals the district's reserved revenue 
178.22  for transportation safety under subdivision 7f for that school 
178.23  year.  Failure of a school district to comply with the reporting 
178.24  requirements of section 123.7991, 123.805, 169.452, 169.4582, or 
178.25  171.321, subdivision 5, may result in a withholding of that 
178.26  district's transportation safety aid for that school year. 
178.27     Sec. 25.  Minnesota Statutes 1996, section 124.646, 
178.28  subdivision 4, is amended to read: 
178.29     Subd. 4.  [SCHOOL FOOD SERVICE FUND.] (a) The expenses 
178.30  described in this subdivision must be recorded as provided in 
178.31  this subdivision. 
178.32     (b) In each school district, the expenses for a school food 
178.33  service program for pupils must be attributed to a school food 
178.34  service fund.  Under a food service program, the school food 
178.35  service may prepare or serve milk, meals, or snacks in 
178.36  connection with school or community service activities. 
179.1      (c) Revenues and expenditures for food service activities 
179.2   must be recorded in the food service fund.  The costs of 
179.3   processing applications, accounting for meals, preparing and 
179.4   serving food, providing kitchen custodial services, and other 
179.5   expenses involving the preparing of meals or the kitchen section 
179.6   of the lunchroom may be charged to the food service fund or to 
179.7   the general fund of the district.  The costs of lunchroom 
179.8   supervision, lunchroom custodial services, lunchroom utilities, 
179.9   and other administrative costs of the food service program must 
179.10  be charged to the general fund. 
179.11     That portion of superintendent and fiscal manager costs 
179.12  that can be documented as attributable to the food service 
179.13  program may be charged to the food service fund provided that 
179.14  the school district does not employ or contract with a food 
179.15  service director or other individual who manages the food 
179.16  service program, or food service management company.  If the 
179.17  cost of the superintendent or fiscal manager is charged to the 
179.18  food service fund, the charge must be at a wage rate not to 
179.19  exceed the statewide average for food service directors as 
179.20  determined by the department of children, families, and learning.
179.21     (d) Capital expenditures for the purchase of food service 
179.22  equipment must be made from the capital general fund and not the 
179.23  food service fund, unless two conditions apply: 
179.24     (1) the unreserved balance in the food service fund at the 
179.25  end of the last fiscal year is greater than the cost of the 
179.26  equipment to be purchased; and 
179.27     (2) the department of children, families, and learning has 
179.28  approved the purchase of the equipment. 
179.29     (e) If the two conditions set out in paragraph (d) apply, 
179.30  the equipment may be purchased from the food service fund. 
179.31     (f) If a deficit in the food service fund exists at the end 
179.32  of a fiscal year, and the deficit is not eliminated by revenues 
179.33  from food service operations in the next fiscal year, then the 
179.34  deficit must be eliminated by a permanent fund transfer from the 
179.35  general fund at the end of that second fiscal year.  However, if 
179.36  a district contracts with a food service management company 
180.1   during the period in which the deficit has accrued, the deficit 
180.2   must be eliminated by a payment from the food service management 
180.3   company. 
180.4      (g) Notwithstanding paragraph (f), a district may incur a 
180.5   deficit in the food service fund for up to three years without 
180.6   making the permanent transfer if the district submits to the 
180.7   commissioner by January 1 of the second fiscal year a plan for 
180.8   eliminating that deficit at the end of the third fiscal year. 
180.9      (h) If a surplus in the food service fund exists at the end 
180.10  of a fiscal year for three successive years, a district may 
180.11  recode for that fiscal year the costs of lunchroom supervision, 
180.12  lunchroom custodial services, lunchroom utilities, and other 
180.13  administrative costs of the food service program charged to the 
180.14  general fund according to paragraph (c) and charge those costs 
180.15  to the food service fund in a total amount not to exceed the 
180.16  amount of surplus in the food service fund. 
180.17     Sec. 26.  Minnesota Statutes 1997 Supplement, section 
180.18  124.6475, is amended to read: 
180.19     124.6475 [SUMMER FOOD SERVICE REPLACEMENT AID.] 
180.20     States funds are available to compensate 
180.21  department-approved summer food program sponsors for reduced 
180.22  federal operating reimbursement rates under Public Law Number 
180.23  104-193, the federal summer food service program.  A sponsor is 
180.24  eligible for summer food service replacement aid equal to the 
180.25  sum of the following amounts: 
180.26     (1) for breakfast service, subtract the current year 
180.27  maximum reimbursement rate from the 1996 maximum reimbursement 
180.28  rate and multiply the result by the number of breakfasts the 
180.29  district served up to four cents per breakfast served by the 
180.30  sponsor during the current school program year; 
180.31     (2) for lunch or supper service, subtract the current year 
180.32  maximum reimbursement rate from the 1996 maximum reimbursement 
180.33  rate and multiply the result by the number of lunches and 
180.34  suppers the district served up to 14 cents per lunch or supper 
180.35  served by the sponsor during the current school program year; 
180.36  and 
181.1      (3) for supplement service, subtract the current year 
181.2   maximum reimbursement rate from the 1996 maximum reimbursement 
181.3   rate and multiply the result by the number of up to ten cents 
181.4   per supplement meals served by the district served sponsor 
181.5   during the current school program year. 
181.6      Sec. 27.  Minnesota Statutes 1997 Supplement, section 
181.7   124.648, subdivision 3, is amended to read: 
181.8      Subd. 3.  [PROGRAM GUIDELINES; DUTIES OF THE COMMISSIONER.] 
181.9   (a) The commissioner shall: 
181.10     (1) encourage all districts to participate in the school 
181.11  milk program for kindergartners; 
181.12     (2) prepare program guidelines, not subject to chapter 14 
181.13  until July 1, 1998, which will effectively and efficiently 
181.14  distribute appropriated and donated money to participating 
181.15  districts; and 
181.16     (3) seek donations and matching funds from appropriate 
181.17  private and public sources. 
181.18     (b) Program guidelines may provide for disbursement to 
181.19  districts through a mechanism of prepayments or by reimbursement 
181.20  for approved program expenses. 
181.21     (c) It is suggested that the benefits of the school milk 
181.22  program may reach the largest number of kindergarten students if 
181.23  districts are allowed to submit annual bids stating the 
181.24  per-serving level of support that would be acceptable to the 
181.25  district for their participation in the program.  The 
181.26  commissioner would review all bids received and approve bids in 
181.27  sufficient number and value to maximize the provision of milk to 
181.28  kindergarten students consistent with available funds. 
181.29     Sec. 28.  Minnesota Statutes 1996, section 125.191, is 
181.30  amended to read: 
181.31     125.191 [LICENSE AND DEGREE EXEMPTION FOR HEAD COACH.] 
181.32     Notwithstanding section 125.03, subdivision 1, a school 
181.33  district may employ as a head varsity coach of an 
181.34  interscholastic sport at its secondary school a person who does 
181.35  not have a license as head varsity coach of interscholastic 
181.36  sports and who does not have a bachelor's degree if: 
182.1      (1) in the judgment of the school board, the person has the 
182.2   knowledge and experience necessary to coach the sport; 
182.3      (2) the position has been posted as a vacancy within the 
182.4   present teaching staff for a period of 30 days and no licensed 
182.5   coaches have applied for the position; 
182.6      (3) the person can verify completion of six quarter 
182.7   credits, or the equivalent, or 60 clock hours of instruction in 
182.8   first aid and the care and prevention of athletic injuries; and 
182.9      (4) the person (3) can verify completion of a coaching 
182.10  methods or theory course. 
182.11     Notwithstanding section 125.121, a person employed as a 
182.12  head varsity coach under this section has an annual contract as 
182.13  a coach that the school board may or may not renew as the board 
182.14  sees fit, after annually posting the position as required in 
182.15  clause (2) and no licensed coach has applied for the position. 
182.16     Sec. 29.  Minnesota Statutes 1996, section 126.12, 
182.17  subdivision 1, is amended to read: 
182.18     Subdivision 1.  Except for learning programs during summer, 
182.19  flexible learning year programs authorized under sections 120.59 
182.20  to 120.67, and learning year programs under section 121.585, a 
182.21  school district shall not commence an elementary or secondary 
182.22  school year prior to Labor Day September 1.  Days which are 
182.23  devoted to teachers' workshops may be held before Labor Day 
182.24  September 1.  Districts that enter into cooperative agreements 
182.25  are encouraged to adopt similar school calendars. 
182.26     Sec. 30.  Minnesota Statutes 1997 Supplement, section 
182.27  169.01, subdivision 6, is amended to read: 
182.28     Subd. 6.  [SCHOOL BUS.] "School bus" means a motor vehicle 
182.29  used to transport pupils to or from a school defined in section 
182.30  120.101, or to or from school-related activities, by the school 
182.31  or a school district, or by someone under an agreement with the 
182.32  school or a school district.  A school bus does not include a 
182.33  motor vehicle transporting children to or from school for which 
182.34  parents or guardians receive direct compensation from a school 
182.35  district, a motor coach operating under charter carrier 
182.36  authority, a transit bus providing services as defined in 
183.1   section 174.22, subdivision 7, or a vehicle otherwise qualifying 
183.2   as a type III vehicle under paragraph (5), when the vehicle is 
183.3   properly registered and insured and being driven by an employee 
183.4   or agent of a school district for nonscheduled transportation.  
183.5   A school bus may be type A, type B, type C, or type D, or type 
183.6   III as follows:  
183.7      (1) A "type A school bus" is a conversion or body 
183.8   constructed upon a van-type or cutaway front section vehicle 
183.9   with a left-side driver's door, designed for carrying more than 
183.10  ten persons.  This definition includes two classifications:  
183.11  type A-I, with a gross vehicle weight rating (GVWR) over 10,000 
183.12  pounds; and type A-II, with a GVWR of 10,000 pounds or less. 
183.13     (2) A "type B school bus" is a conversion or body 
183.14  constructed and installed upon a van or front-section vehicle 
183.15  chassis, or stripped chassis, with a gross vehicle weight rating 
183.16  of more than 10,000 pounds, designed for carrying more than ten 
183.17  persons.  Part of the engine is beneath or behind the windshield 
183.18  and beside the driver's seat.  The entrance door is behind the 
183.19  front wheels. 
183.20     (3) A "type C school bus" is a body installed upon a flat 
183.21  back cowl chassis with a gross vehicle weight rating of more 
183.22  than 10,000 pounds, designed for carrying more than ten 
183.23  persons.  All of the engine is in front of the windshield and 
183.24  the entrance door is behind the front wheels. 
183.25     (4) A "type D school bus" is a body installed upon a 
183.26  chassis, with the engine mounted in the front, midship or rear, 
183.27  with a gross vehicle weight rating of more than 10,000 pounds, 
183.28  designed for carrying more than ten persons.  The engine may be 
183.29  behind the windshield and beside the driver's seat; it may be at 
183.30  the rear of the bus, behind the rear wheels, or midship between 
183.31  the front and rear axles.  The entrance door is ahead of the 
183.32  front wheels. 
183.33     (5) Type III school buses and type III Head Start buses are 
183.34  restricted to passenger cars, station wagons, vans, and buses in 
183.35  service after January 1, 1999, having a maximum an original 
183.36  maximum manufacturer's rated seating capacity of ten or fewer 
184.1   people, including the driver, and a gross vehicle weight rating 
184.2   of 10,000 pounds or less.  In this subdivision, "gross vehicle 
184.3   weight rating" means the value specified by the manufacturer as 
184.4   the loaded weight of a single vehicle.  A "type III school bus" 
184.5   and "type III Head Start bus" must not be outwardly equipped and 
184.6   identified as a type A, B, C, or D school bus or type A, B, C, 
184.7   or D Head Start bus. 
184.8      Sec. 31.  Minnesota Statutes 1996, section 169.451, 
184.9   subdivision 5, is amended to read: 
184.10     Subd. 5.  [RANDOM SPOT INSPECTIONS.] In addition to the 
184.11  annual inspection, the Minnesota state patrol has authority to 
184.12  conduct random, unannounced spot inspections of any school bus 
184.13  or Head Start bus being operated within the state at the 
184.14  location where the bus is kept when not in operation to 
184.15  ascertain whether its construction, design, equipment, and color 
184.16  comply it is in compliance with all provisions of law, including 
184.17  the Minnesota school bus equipment standards in sections 
184.18  169.4501 to 169.4504, subject to the procedures approved by the 
184.19  commissioner. 
184.20     Sec. 32.  Minnesota Statutes 1997 Supplement, section 
184.21  290.0674, subdivision 1, is amended to read: 
184.22     Subdivision 1.  [CREDIT ALLOWED.] An individual is allowed 
184.23  a credit against the tax imposed by this chapter in an amount 
184.24  equal to the amount paid for education-related expenses for a 
184.25  dependent in kindergarten through grade 12.  For purposes of 
184.26  this section, "education-related expenses" means: 
184.27     (1) fees or tuition for instruction by an instructor under 
184.28  section 120.101, subdivision 7, clause (1), (2), (3), (4), or 
184.29  (5), for instruction outside the regular school day or school 
184.30  year, including tutoring, driver's education taken offered as 
184.31  part of school curriculum, regardless of whether it is taken 
184.32  from a public or private entity or summer camps, in grade or age 
184.33  appropriate curricula that supplement curricula and instruction 
184.34  available during the regular school year, that assists a 
184.35  dependent to improve knowledge of core curriculum areas or to 
184.36  expand knowledge and skills under the graduation rule under 
185.1   section 121.11, subdivision 7c, and that do not include the 
185.2   teaching of religious tenets, doctrines, or worship, the purpose 
185.3   of which is to instill such tenets, doctrines, or worship; 
185.4      (2) expenses for textbooks, including books and other 
185.5   instructional materials and equipment used in elementary and 
185.6   secondary schools in teaching only those subjects legally and 
185.7   commonly taught in public elementary and secondary schools in 
185.8   this state.  "Textbooks" does not include instructional books 
185.9   and materials used in the teaching of religious tenets, 
185.10  doctrines, or worship, the purpose of which is to instill such 
185.11  tenets, doctrines, or worship, nor does it include books or 
185.12  materials for extracurricular activities including sporting 
185.13  events, musical or dramatic events, speech activities, driver's 
185.14  education, or similar programs; 
185.15     (3) a maximum expense of $200 per family for personal 
185.16  computer hardware, excluding single purpose processors, and 
185.17  educational software that assists a dependent to improve 
185.18  knowledge of core curriculum areas or to expand knowledge and 
185.19  skills under the graduation rule under section 121.11, 
185.20  subdivision 7c, purchased for use in the taxpayer's home and not 
185.21  used in a trade or business regardless of whether the computer 
185.22  is required by the dependent's school; and 
185.23     (4) the amount paid to others for transportation of a 
185.24  dependent attending an elementary or secondary school situated 
185.25  in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, 
185.26  wherein a resident of this state may legally fulfill the state's 
185.27  compulsory attendance laws, which is not operated for profit, 
185.28  and which adheres to the provisions of the Civil Rights Act of 
185.29  1964 and chapter 363. 
185.30     Sec. 33.  [COMMISSIONER OF CHILDREN, FAMILIES, AND 
185.31  LEARNING.] 
185.32     The commissioner of children, families, and learning shall 
185.33  apply directly to the Internal Revenue Service to obtain access 
185.34  to federal income tax information for the purpose of determining 
185.35  state school aids.  If the commissioner's request is approved, 
185.36  then the commissioner shall report to the education committees 
186.1   of the legislature on the changes needed in state statute. 
186.2      Sec. 34.  [ACCELERATED TRANSITION PLAN.] 
186.3      Notwithstanding Minnesota Statutes, section 122.23, 
186.4   subdivision 2b, or other law to the contrary, independent school 
186.5   district No. 2884, Red Rock Central, is authorized to terminate 
186.6   all existing school board members' terms by the first Monday in 
186.7   January 1999, and to hold elections for seven school board 
186.8   members at the 1998 school district general election under 
186.9   Minnesota Statutes, section 205A.04.  Of the seven board members 
186.10  elected, three members shall be elected to serve four-year terms 
186.11  and four members shall be elected to serve two-year terms.  Only 
186.12  one board member from each election district shall be elected to 
186.13  serve a four-year term.  Candidates must specify in their 
186.14  affidavit the election district and the term of office to which 
186.15  they are seeking election.  The school board members elected at 
186.16  the 1998 school district general election shall assume office on 
186.17  the first Monday in January 1999.  The school board of 
186.18  independent school district No. 2884, Red Rock Central, then 
186.19  shall consist of seven members until such time as the electors 
186.20  in the school district vote on a proposition favoring a 
186.21  six-member board under Minnesota Statutes, section 123.33, 
186.22  subdivision 1. 
186.23     Sec. 35.  [SCHOOL YEAR START DATE.] 
186.24     Subdivision 1.  [BUFFALO.] Notwithstanding Minnesota 
186.25  Statutes, section 126.12, subdivision 1, and Laws 1997, First 
186.26  Special Session chapter 4, article 7, section 49, subdivision 1, 
186.27  for the 1998-1999 and 1999-2000 school years only, independent 
186.28  school district No. 877, Buffalo, may begin the school year any 
186.29  day prior to Labor Day. 
186.30     Subd. 2.  [SARTELL.] Notwithstanding Minnesota Statutes, 
186.31  section 126.12, subdivision 1, and Laws 1997, First Special 
186.32  Session chapter 4, article 7, section 49, subdivision 1, 
186.33  independent school district No. 748, Sartell, may begin the 
186.34  1998-1999 school year before Labor Day only by the number of 
186.35  days necessary to accommodate the district building construction 
186.36  project. 
187.1      Subd. 3.  [HOLDINGFORD.] Notwithstanding Minnesota 
187.2   Statutes, section 126.12, subdivision 1, and Laws 1997, First 
187.3   Special Session chapter 4, article 7, section 49, subdivision 1, 
187.4   independent school district No. 738, Holdingford, may begin the 
187.5   1998-1999 school year on the Monday prior to Labor Day. 
187.6      Subd. 4.  [BROWNS VALLEY.] Notwithstanding Minnesota 
187.7   Statutes, section 126.12, subdivision 1, and Laws 1997 First 
187.8   Special Session, chapter 4, article 7, section 49, subdivision 
187.9   1, independent school district No. 801, Browns Valley, may begin 
187.10  the 1998-99 school year on August 24, 1998, to accommodate its 
187.11  shared school calendar with the Sisseton, South Dakota, school 
187.12  district. 
187.13     Subd. 5.  [FARIBAULT ACADEMIES.] Notwithstanding Minnesota 
187.14  Statutes, section 126.12, subdivision 1, and Laws 1997, First 
187.15  Special Session chapter 4, article 7, section 49, subdivision 1, 
187.16  for the 1998-1999 and 1999-2000 school years only, Faribault 
187.17  Academies may begin the school year any day prior to Labor Day. 
187.18     Subd. 6.  [CROOKSTON.] Notwithstanding Minnesota Statutes, 
187.19  section 126.12, subdivision 1, and Laws 1997, First Special 
187.20  Session chapter 4, article 7, section 49, subdivision 1, for the 
187.21  1998-1999 school year only, independent school district No. 593, 
187.22  Crookston, may begin the school year any day prior to Labor Day. 
187.23     Subd. 7.  [FERTILE-BELTRAMI.] Notwithstanding Minnesota 
187.24  Statutes, section 126.12, subdivision 1, and Laws 1997, First 
187.25  Special Session chapter 4, article 7, section 49, subdivision 1, 
187.26  for the 1998-1999 school year only, independent school district 
187.27  No. 599, Fertile-Bertrami, may begin the school year any day 
187.28  prior to Labor Day. 
187.29     Subd. 8.  [FISHER.] Notwithstanding Minnesota Statutes, 
187.30  section 126.12, subdivision 1, and Laws 1997, First Special 
187.31  Session chapter 4, article 7, section 49, subdivision 1, for the 
187.32  1998-1999 school year only, independent school district No. 600, 
187.33  Fisher, may begin the school year any day prior to Labor Day. 
187.34     Sec. 36.  [FUND TRANSFERS.] 
187.35     Subdivision 1.  [ADA-BORUP.] Notwithstanding Minnesota 
187.36  Statutes, section 124.83, subdivision 6, independent school 
188.1   district No. 2854, Ada-Borup, may use up to $90,000 of its 
188.2   health and safety revenue for capital improvements, equipment, 
188.3   or furnishings for new facilities. 
188.4      Subd. 2.  [LYND.] Notwithstanding Minnesota Statutes, 
188.5   sections 121.912 and 121.9121, on June 30, 1998, independent 
188.6   school district No. 415, Lynd, may permanently transfer $100,000 
188.7   from reserve accounts in the general fund to the unreserved 
188.8   general fund.  The transfer may be made from the reemployment 
188.9   account and the bus purchase account.  Transfers from the 
188.10  reemployment and bus purchase accounts may be made without 
188.11  making a levy reduction. 
188.12     Subd. 3.  [RUSSELL.] Notwithstanding Minnesota Statutes, 
188.13  section 121.912 or 121.9121, on June 30, 1998, independent 
188.14  school district No. 418, Russell, may permanently transfer up to 
188.15  $150,000 from its capital expenditure fund to the district's 
188.16  general fund.  The transfer must not include health and safety 
188.17  or handicapped access revenue. 
188.18     Subd. 4.  [WIN-E-MAC.] Notwithstanding Minnesota Statutes, 
188.19  section 121.912 or 121.9121, on June 30, 1998, independent 
188.20  school district No. 2609, Win-E-Mac, may permanently transfer 
188.21  the balance of its health and safety account to its building 
188.22  construction fund.  This is an eligible expenditure of health 
188.23  and safety revenue. 
188.24     Sec. 37.  [APPROPRIATIONS.] 
188.25     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
188.26  LEARNING.] The sums indicated in this section are appropriated 
188.27  from the general fund to the department of children, families, 
188.28  and learning for the fiscal years designated. 
188.29     Subd. 2.  [MEDIA SPECIALIST.] For a media specialist for 
188.30  independent school district No. 707, Nett Lake: 
188.31       $   34,000     .....     1999
188.32     Sec. 38.  [REPEALER.] 
188.33     (a) Minnesota Statutes 1996, section 121.11, subdivisions 
188.34  5, 7, 7b, 9, 11, 12, and 14; and Minnesota Statutes 1997 
188.35  Supplement, section 121.11, subdivision 7e, are repealed 
188.36  effective December 31, 1999. 
189.1      (b) Minnesota Statutes 1996, section 121.11, subdivision 
189.2   7d, is repealed effective January 10, 1999. 
189.3      (c) Minnesota Statutes 1996, section 124.647; and Minnesota 
189.4   Statutes 1997 Supplement, section 169.452, are repealed. 
189.5      Sec. 39.  [EFFECTIVE DATES.] 
189.6      (a) Sections 1 to 13 are effective December 31, 1999. 
189.7      (b) Sections 14, 28, 34, and 35 are effective the day 
189.8   following final enactment. 
189.9      (c) Sections 17, 25, and 26 are effective July 1, 1998. 
189.10     (d) Section 29 is effective for the 2000-2001 school year. 
189.11     (e) Section 36 is effective June 30, 1998. 
189.12                             ARTICLE 7 
189.13                             LIBRARIES 
189.14     Section 1.  Laws 1997, First Special Session chapter 4, 
189.15  article 8, section 4, subdivision 3, is amended to read: 
189.16     Subd. 3.  [BOARD; APPOINTMENTS.] The resolution in 
189.17  subdivision 2 shall provide for a library board of five seven 
189.18  members as follows:  two members appointed by the school board 
189.19  of independent school district No. 319, one member appointed by 
189.20  each town board located within independent school district No. 
189.21  319 boundaries, one member appointed by the council of the city 
189.22  of Nashwauk, and one member appointed by the Itasca county board 
189.23  to represent the unorganized towns within the school district 
189.24  territory. 
189.25     Sec. 2.  [APPROPRIATION; DEPARTMENT OF CHILDREN, FAMILIES, 
189.26  AND LEARNING.] 
189.27     Subdivision 1.  [APPROPRIATIONS.] The sums indicated in 
189.28  this section are appropriated from the general fund to the 
189.29  department of children, families, and learning for the fiscal 
189.30  years designated. 
189.31     Subd. 2.  [REGIONAL LIBRARY SYSTEMS.] For regional library 
189.32  systems: 
189.33         $250,000     .....     1999 
189.34  The money must be divided equally among the 12 regional public 
189.35  library systems established under Minnesota Statutes, section 
189.36  134.20, for use in providing library services. 
190.1      Subd. 3.  [LIBRARY FOR THE BLIND; APPROPRIATION.] For the 
190.2   purchase and installation of online catalog software for the 
190.3   Minnesota library for the blind and physically handicapped: 
190.4           $60,000     .....     1999 
190.5                              ARTICLE 8
190.6                            STATE AGENCIES
190.7      Section 1.  Laws 1997, First Special Session chapter 4, 
190.8   article 10, section 3, subdivision 2, is amended to read: 
190.9      Subd. 2.  [DEPARTMENT.] For the department of children, 
190.10  families, and learning: 
190.11       $24,360,000 $24,810,000   .....      1998
190.12       $23,978,000 $24,428,000   .....      1999
190.13     (a) Any balance in the first year does not cancel but is 
190.14  available in the second year. 
190.15     (b) $21,000 each year is from the trunk highway fund. 
190.16     (c) $622,000 in 1998 and $627,000 in 1999 is for the 
190.17  academic excellence foundation. 
190.18     Up to $50,000 each year is contingent upon the match of $1 
190.19  in the previous year from private sources consisting of either 
190.20  direct monetary contributions or in-kind contributions of 
190.21  related goods or services, for each $1 of the appropriation.  
190.22  The commissioner of children, families, and learning must 
190.23  certify receipt of the money or documentation for the private 
190.24  matching funds or in-kind contributions.  The unencumbered 
190.25  balance from the amount actually appropriated from the 
190.26  contingent amount in 1998 does not cancel but is available in 
190.27  1999.  The amount carried forward must not be used to establish 
190.28  a larger annual base appropriation for later fiscal years. 
190.29     (d) $207,000 in 1998 and $210,000 in 1999 is for the state 
190.30  board of education. 
190.31     (e) $230,000 in 1998 and $234,000 in 1999 is for the board 
190.32  of teaching. 
190.33     (f) The expenditures of federal grants and aids as shown in 
190.34  the biennial budget document and its supplements are approved 
190.35  and appropriated and shall be spent as indicated. 
190.36     (g) The department of children, families, and learning 
191.1   shall develop a performance report on the quality of its 
191.2   programs and services.  The report must be consistent with the 
191.3   process specified in Minnesota Statutes, sections 15.90 to 
191.4   15.92.  The goals, objectives, and measures of this report must 
191.5   be developed in cooperation with the chairs of the finance 
191.6   divisions of the education committees of the house of 
191.7   representatives and senate, the department of finance, and the 
191.8   office of legislative auditor.  The report must include data to 
191.9   indicate the progress of the department in meeting its goals and 
191.10  objectives. 
191.11     (h) At least $50,000 is to ensure compliance with state and 
191.12  federal laws prohibiting discrimination because of race, 
191.13  religion, or sex.  The department shall use the appropriation to 
191.14  provide state-level leadership on equal education opportunities 
191.15  which promote elimination of discriminatory practices in the 
191.16  areas of race, religion, and sex in public schools and public 
191.17  educational agencies under its general supervision and on 
191.18  activities including, at least, compliance monitoring and 
191.19  voluntary compliance when local school district deficiencies are 
191.20  found. 
191.21     (i) Notwithstanding Minnesota Statutes, section 15.53, 
191.22  subdivision 2, the commissioner of children, families, and 
191.23  learning may contract with a school district for a period no 
191.24  longer than five consecutive years to work in the development or 
191.25  implementation of the graduation rule.  The commissioner may 
191.26  contract for services and expertise as necessary.  The contracts 
191.27  are not subject to Minnesota Statutes, sections 16B.06 to 16B.08.
191.28     (j) In preparing the department budget for fiscal years 
191.29  2000-2001, the department shall shift all administrative funding 
191.30  from aids appropriations into the appropriation for the 
191.31  department. 
191.32     (k) Reallocations of excesses under Minnesota Statutes, 
191.33  section 124.14, subdivision 7, from appropriations within this 
191.34  act shall only be made to deficiencies in programs with 
191.35  appropriations contained within this act. 
191.36     (l) $850,000 $1,300,000 each year is for costs associated 
192.1   with educational adequacy litigation costs and may only be used 
192.2   for those purposes.  These appropriations are one-time 
192.3   only.  Amounts appropriated for one year of the biennium may be 
192.4   used for the other.  
192.5      (m) Collaborative efforts between the department of 
192.6   children, families, and learning and the office of technology, 
192.7   as specified in Minnesota Statutes, section 237A.015, include: 
192.8      (1) advising the commissioner of children, families, and 
192.9   learning on new and emerging technologies, potential business 
192.10  partnerships, and technical standards; 
192.11     (2) assisting the commissioner of children, families, and 
192.12  learning in the sharing of data between state agencies relative 
192.13  to children's programs; and 
192.14     (3) as requested by the commissioner of children, families, 
192.15  and learning, assisting in collaborative efforts for joint 
192.16  prekindergarten through grade 12 and higher education projects, 
192.17  including the learning network. 
192.18  The commissioner of children, families, and learning shall have 
192.19  final approval for prekindergarten through grade 12 programs and 
192.20  lifelong learning programs, grant awards, and funding decisions. 
192.21     Sec. 2.  Laws 1997, First Special Session chapter 4, 
192.22  article 10, section 4, is amended to read: 
192.23     Sec. 4.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
192.24  CENTER FOR ARTS EDUCATION.] 
192.25     The sums indicated in this section are appropriated from 
192.26  the general fund to the center for arts education for the fiscal 
192.27  years designated: 
192.28      $5,541,000 $5,559,000     .....     1998
192.29      $6,054,000 $6,120,000     .....     1999
192.30     Of the fiscal year 1998 appropriation, $154,000 is to fund 
192.31  artist and arts organization participation in the education 
192.32  residency and education technology projects, $75,000 is for 
192.33  school support for the residency project, and $121,000 is for 
192.34  further development of the partners:  arts and school for 
192.35  students (PASS) program, including pilots.  Of the fiscal year 
192.36  1999 appropriation, $154,000 is to fund artist and arts 
193.1   organizations participation in the education residency project, 
193.2   $75,000 is for school support for the residency project, and 
193.3   $121,000 is to fund the PASS program, including additional 
193.4   pilots, and $30,000 is for staff development activities related 
193.5   to implementation of the graduation rule.  The guidelines for 
193.6   the education residency project and the pass program shall be 
193.7   developed and defined by the center for arts education in 
193.8   cooperation with the Minnesota arts board.  The Minnesota arts 
193.9   board shall participate in the review and allocation process.  
193.10  The center for arts education and the Minnesota arts board shall 
193.11  cooperate to fund these projects. 
193.12     Any balance in the first year does not cancel but is 
193.13  available in the second year. 
193.14     Sec. 3.  Laws 1997, First Special Session chapter 4, 
193.15  article 10, section 5, is amended to read: 
193.16     Sec. 5.  [APPROPRIATIONS; FARIBAULT ACADEMIES.] 
193.17     The sums indicated in this section are appropriated from 
193.18  the general fund to the department of children, families, and 
193.19  learning for the Faribault academies for the fiscal years 
193.20  designated:  
193.21       $8,910,000 $8,949,000     .....     1998
193.22       $8,908,000 $8,986,000     .....     1999 
193.23     Any balance in the first year does not cancel but is 
193.24  available in the second year. 
193.25     In the next biennial budget, the academies must assess 
193.26  their progress in meeting the established performance measures 
193.27  for the Faribault academies and inform the legislature on the 
193.28  content of that assessment.  The information must include an 
193.29  assessment of its progress by consumers and employees. 
193.30     Sec. 4.  [EFFECTIVE DATE.] 
193.31     Sections 1 to 3 are effective the day following final 
193.32  enactment. 
193.33                             ARTICLE 9 
193.34                           MISCELLANEOUS 
193.35     Section 1.  [123.3517] [STUDENT ACHIEVEMENT LEVELS.] 
193.36     Subdivision 1.  [STATE EXPECTATIONS; PLAN.] (a) Each school 
194.1   year, a school district must determine if the student 
194.2   achievement levels at each school site meet state expectations.  
194.3   If student achievement levels at a school site do not meet state 
194.4   expectations for two out of three consecutive school years, 
194.5   beginning with the 1999-2000 school year, the district must work 
194.6   with the school site to adopt a plan to raise student 
194.7   achievement levels to state expectations.  The legislature will 
194.8   determine state expectations after receiving a recommendation 
194.9   from the commissioner of children, families, and learning.  The 
194.10  commissioner must submit its recommendations to the legislature 
194.11  by December 15, 1998. 
194.12     (b) The department must assist the district and the school 
194.13  site in developing a plan to improve student achievement.  The 
194.14  plan must include parental involvement components. 
194.15     Sec. 2.  [145.9266] [FETAL ALCOHOL SYNDROME CAMPAIGN AND 
194.16  EDUCATION.] 
194.17     Subdivision 1.  [PUBLIC AWARENESS AND EDUCATION.] The 
194.18  commissioner of health shall design and implement an ongoing 
194.19  statewide campaign to raise awareness and educate the public 
194.20  about fetal alcohol syndrome and other effects of prenatal 
194.21  alcohol exposure.  The campaign shall include messages directed 
194.22  to the general population as well as culturally specific and 
194.23  community-based messages.  A toll-free resource and referral 
194.24  telephone line shall be included in the messages.  The 
194.25  commissioner of health shall conduct an evaluation to determine 
194.26  the effectiveness of the campaign. 
194.27     Subd. 2.  [STATEWIDE NETWORK OF FETAL ALCOHOL SYNDROME 
194.28  DIAGNOSTIC CLINICS.] A statewide network of regional fetal 
194.29  alcohol syndrome diagnostic clinics shall be developed between 
194.30  the department of health and the University of Minnesota.  This 
194.31  collaboration shall be based on a statewide needs assessment and 
194.32  shall include involvement from consumers, providers, and 
194.33  payors.  By the end of calendar year 1998, a plan shall be 
194.34  developed for the clinic network, and shall include a 
194.35  comprehensive evaluation component.  Sites shall be established 
194.36  in calendar year 1999.  The commissioner shall not access or 
195.1   collect individually identifiable data for the statewide network 
195.2   of regional fetal alcohol syndrome diagnostic clinics.  Data 
195.3   collected at the clinics shall be maintained according to 
195.4   applicable data privacy laws, including section 144.335. 
195.5      Subd. 3.  [PROFESSIONAL TRAINING AND EDUCATION ABOUT FETAL 
195.6   ALCOHOL SYNDROME.] (a) The commissioner of health, in 
195.7   collaboration with the board of medical practice, the board of 
195.8   nursing, and other professional boards and state agencies, shall 
195.9   develop curricula and materials about fetal alcohol syndrome for 
195.10  professional training of health care providers, social service 
195.11  providers, educators, and judicial and corrections systems 
195.12  professionals.  The training and curricula shall increase 
195.13  knowledge and develop practical skills of professionals to help 
195.14  them address the needs of at-risk pregnant women and the needs 
195.15  of individuals affected by fetal alcohol syndrome or fetal 
195.16  alcohol effects and their families. 
195.17     (b) Training for health care providers shall focus on skill 
195.18  building for screening, counseling, referral, and follow-up for 
195.19  women using or at risk of using alcohol while pregnant.  
195.20  Training for health care professionals shall include methods for 
195.21  diagnosis and evaluation of fetal alcohol syndrome and fetal 
195.22  alcohol effects.  Training for education, judicial, and 
195.23  corrections professionals shall involve effective education 
195.24  strategies, methods to identify the behaviors and learning 
195.25  styles of children with alcohol-related birth defects, and 
195.26  methods to identify available referral and community resources. 
195.27     (c) Training and education for social service providers 
195.28  shall focus on resources for assessing, referring, and treating 
195.29  at-risk pregnant women, changes in the mandatory reporting and 
195.30  commitment laws, and resources for affected children and their 
195.31  families.  
195.32     Subd. 4.  [FETAL ALCOHOL SYNDROME COMMUNITY GRANT EDUCATION 
195.33  PROGRAM.] The commissioner of health shall administer a grant 
195.34  education program to provide money to community organizations 
195.35  and coalitions to collaborate on fetal alcohol syndrome 
195.36  prevention and intervention strategies and activities.  The 
196.1   commissioner shall disburse grant money through a request for 
196.2   proposal process or sole-source distribution where appropriate, 
196.3   and shall include at least one grant award for transitional 
196.4   skills and services for individuals with fetal alcohol syndrome 
196.5   or fetal alcohol effects. 
196.6      Subd. 5.  [SCHOOL PILOT PROGRAMS.] (a) The commissioner of 
196.7   children, families, and learning shall award up to four grants 
196.8   to schools for pilot programs to identify and implement 
196.9   effective educational strategies for individuals with fetal 
196.10  alcohol syndrome and other alcohol-related birth defects.  
196.11     (b) One grant shall be awarded in each of the following age 
196.12  categories:  
196.13     (1) birth to three years; 
196.14     (2) three to five years; 
196.15     (3) six to 12 years; and 
196.16     (4) 13 to 18 years.  
196.17     (c) Grant proposals must include an evaluation plan, 
196.18  demonstrate evidence of a collaborative or multisystem approach, 
196.19  provide parent education and support, and show evidence of a 
196.20  child- and family-focused approach consistent with 
196.21  research-based best educational practices and other guidelines 
196.22  developed by the department of children, families, and learning. 
196.23     (d) Children participating in the pilot program sites may 
196.24  be identified through child find activities or a diagnostic 
196.25  clinic.  No identification activity may be undertaken without 
196.26  the consent of a child's parent or guardian. 
196.27     Subd. 6.  [FETAL ALCOHOL COORDINATING BOARD; DUTIES.] (a) 
196.28  The fetal alcohol coordinating board consists of: 
196.29     (1) the commissioners of health, human services, 
196.30  corrections, public safety, economic security, and children, 
196.31  families, and learning; 
196.32     (2) the director of the office of strategic and long-range 
196.33  planning; 
196.34     (3) the chair of the maternal and child health advisory 
196.35  task force established by section 145.881, or the chair's 
196.36  designee; 
197.1      (4) a representative of the University of Minnesota 
197.2   academic health center, appointed by the provost; 
197.3      (5) five members from the general public appointed by the 
197.4   governor, one of whom must be a family member of an individual 
197.5   with fetal alcohol syndrome or fetal alcohol effect; and 
197.6      (6) one member from the judiciary appointed by the chief 
197.7   justice of the supreme court. 
197.8   Terms, compensation, removal, and filling of vacancies of 
197.9   appointed members are governed by section 15.0575.  The board 
197.10  shall elect a chair from its membership to serve a one-year 
197.11  term.  The commissioner of health shall provide staff and 
197.12  consultant support for the board.  Support must be provided 
197.13  based on an annual budget and work plan developed by the board.  
197.14  The board shall contract with the department of health for 
197.15  necessary administrative services.  Administrative services 
197.16  include personnel, budget, payroll, and contract 
197.17  administration.  The board shall adopt an annual budget and work 
197.18  program. 
197.19     (b) Board duties include:  
197.20     (1) reviewing programs of state agencies that involve fetal 
197.21  alcohol syndrome and coordinating those that are 
197.22  interdepartmental in nature; 
197.23     (2) providing an integrated and comprehensive approach to 
197.24  fetal alcohol syndrome prevention and intervention strategies 
197.25  both at a local and statewide level; 
197.26     (3) approving on an annual basis the statewide public 
197.27  awareness campaign as designed and implemented by the 
197.28  commissioner of health under subdivision 1; 
197.29     (4) reviewing fetal alcohol syndrome community grants 
197.30  administered by the commissioner of health under subdivision 4; 
197.31  and 
197.32     (5) submitting a report to the governor on January 15 of 
197.33  each odd-numbered year summarizing board operations, activities, 
197.34  findings, and recommendations, and fetal alcohol syndrome 
197.35  activities throughout the state. 
197.36     (c) The board expires on January 1, 2001. 
198.1      Subd. 7.  [FEDERAL FUNDS; CONTRACTS; DONATIONS.] The fetal 
198.2   alcohol coordinating board may apply for, receive, and disburse 
198.3   federal funds made available to the state by federal law or 
198.4   rules adopted for any purpose related to the powers and duties 
198.5   of the board.  The board shall comply with any requirements of 
198.6   federal law, rules, and regulations in order to apply for, 
198.7   receive, and disburse funds.  The board may contract with or 
198.8   provide grants to public and private nonprofit entities.  The 
198.9   board may accept donations or grants from any public or private 
198.10  entity.  Money received by the board must be deposited in a 
198.11  separate account in the state treasury and invested by the state 
198.12  board of investment.  The amount deposited, including investment 
198.13  earnings, is appropriated to the board to carry out its duties.  
198.14  Money deposited in the state treasury shall not cancel.  
198.15     Sec. 3.  Minnesota Statutes 1996, section 254A.17, 
198.16  subdivision 1, is amended to read: 
198.17     Subdivision 1.  [MATERNAL AND CHILD SERVICE PROGRAMS.] (a) 
198.18  The commissioner shall fund maternal and child health and social 
198.19  service programs designed to improve the health and functioning 
198.20  of children born to mothers using alcohol and controlled 
198.21  substances.  Comprehensive programs shall include immediate and 
198.22  ongoing intervention, treatment, and coordination of medical, 
198.23  educational, and social services through a child's preschool 
198.24  years.  Programs shall also include research and evaluation to 
198.25  identify methods most effective in improving outcomes among this 
198.26  high-risk population.  The commissioner shall ensure that the 
198.27  programs are available on a statewide basis to the extent 
198.28  possible with available funds.  
198.29     (b) The commissioner of human services shall develop models 
198.30  for the treatment of children ages 6 to 12 who are in need of 
198.31  chemical dependency treatment.  The commissioner shall fund at 
198.32  least two pilot projects with qualified providers to provide 
198.33  nonresidential treatment for children in this age group.  Model 
198.34  programs must include a component to monitor and evaluate 
198.35  treatment outcomes. 
198.36     Sec. 4.  Minnesota Statutes 1996, section 254A.17, is 
199.1   amended by adding a subdivision to read: 
199.2      Subd. 1b.  [INTERVENTION, EDUCATION, AND ADVOCACY PROGRAM.] 
199.3   Within the limits of money available, the commissioner of human 
199.4   services shall fund voluntary hospital-based outreach programs 
199.5   targeted at women who deliver children affected by prenatal 
199.6   alcohol or drug use.  The program shall help women obtain 
199.7   treatment, stay in recovery, and plan any future pregnancies.  
199.8   An advocate shall be assigned to each woman in the program to 
199.9   provide education, guidance, and advice with respect to 
199.10  treatment programs, child safety and parenting, housing, family 
199.11  planning, and any other personal issues that are barriers to 
199.12  remaining free of chemical dependence.  The commissioner shall 
199.13  develop an evaluation component and provide centralized 
199.14  coordination of the evaluation process. 
199.15     Sec. 5.  Laws 1996, chapter 412, article 12, section 12, 
199.16  subdivision 5, is amended to read: 
199.17     Subd. 5.  [REPORT.] By January 1, 1999 2000, the selected 
199.18  district shall submit a report to the commissioner on the 
199.19  program with recommendations for expanding it or making changes. 
199.20     Sec. 6.  Laws 1997, First Special Session chapter 4, 
199.21  article 9, section 12, subdivision 6, is amended to read: 
199.22     Subd. 6.  [ELECTRONIC CURRICULUM RESOURCE.] For support of 
199.23  electronic curriculum development: 
199.24       $4,000,000     .....     1998
199.25     Of this amount, $2,700,000 is for the electronic curriculum 
199.26  resource under section 5, $1,000,000 of which is for the 
199.27  collaborative arts project in section 5, subdivision 1, 
199.28  paragraph (c), clause (5). 
199.29     Of this amount, $300,000 is for the purposes of the Gopher 
199.30  Biology Shareware Project under section 5, subdivision 1, 
199.31  paragraph (c), clause (1). 
199.32     The department may use up to $100,000 for quality control 
199.33  of the curriculum repository. 
199.34     This appropriation is available until June 30, 1999.  
199.35     Sec. 7.  [DATABASE ACCESS PROGRAM FOR PUBLIC LIBRARIES AND 
199.36  SCHOOL MEDIA CENTERS.] 
200.1      Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
200.2   children, families, and learning shall establish a program to 
200.3   provide statewide licenses to commercial electronic databases of 
200.4   periodicals, encyclopedias, and associated reference materials 
200.5   for school media centers and public libraries.  The 
200.6   commissioner, in consultation with Minitex and in cooperation 
200.7   with the Library Planning Task Force, shall solicit proposals 
200.8   for access licenses to commercial vendors of the databases.  
200.9   Responses to those proposals shall be evaluated by staff of the 
200.10  office of library development and services in the department of 
200.11  children, families, and learning, Minitex staff, and a 
200.12  representative panel of school media specialists and public 
200.13  librarians. 
200.14     Subd. 2.  [ELIGIBILITY.] Access to the selected databases 
200.15  shall be made available to a school or school district that is a 
200.16  member of a multicounty, multitype library system as defined in 
200.17  Minnesota Statutes, section 134.001, subdivision 6, or a public 
200.18  library as defined in Minnesota Statutes, section 134.001, 
200.19  subdivision 2, that is a member of a multicounty, multitype 
200.20  library system.  With appropriate authentication any user of an 
200.21  eligible library may have access to the databases from a remote 
200.22  site. 
200.23     Subd. 3.  [RESOURCE GRANTS.] Graduation rule resource 
200.24  grants are available for the purposes of this section. 
200.25     Sec. 8.  [CITY OF EAST GRAND FORKS; APPROPRIATION.] 
200.26     $650,000 is appropriated in fiscal year 1998 from the 
200.27  general fund to the department of public safety for a grant to 
200.28  the city of East Grand Forks to make a loan for the nonfederal 
200.29  share of flood costs for educational facilities in East Grand 
200.30  Forks. 
200.31     Sec. 9.  [APPROPRIATIONS.] 
200.32     (a) $5,000,000 is appropriated in 1999 from the general 
200.33  fund to the commissioner of health for the fetal alcohol 
200.34  syndrome initiative in section 2. 
200.35     (b)(1) Of the appropriation in paragraph (a), $5,000,000 in 
200.36  fiscal year 1999 is from the general fund to the commissioner 
201.1   for the fetal alcohol syndrome/fetal alcohol effect (FAS/FAE) 
201.2   initiatives specified in paragraphs (2) to (11). 
201.3      (2) Of the amount in paragraph (a), $200,000 is transferred 
201.4   to the commissioner of children, families, and learning for 
201.5   school-based pilot programs to identify and implement effective 
201.6   educational strategies for individuals with FAS/FAE. 
201.7      (3) Of the amount in paragraph (a), $800,000 is for the 
201.8   public awareness campaign under Minnesota Statutes, section 
201.9   145.9266, subdivision 1. 
201.10     (4) Of the amount in paragraph (a), $400,000 is to develop 
201.11  a statewide network of regional FAS diagnostic clinics under 
201.12  Minnesota Statutes, section 145.9266, subdivision 2. 
201.13     (5) Of the amount in paragraph (a), $150,000 is for 
201.14  professional training about FAS under Minnesota Statutes, 
201.15  section 145.9266, subdivision 3. 
201.16     (6) Of the amount in paragraph (a), $350,000 is for the 
201.17  fetal alcohol coordinating board under Minnesota Statutes, 
201.18  section 145.9266, subdivision 6. 
201.19     (7) Of the amount in paragraph (a), $800,000 is transferred 
201.20  to the commissioner of human services to expand the maternal and 
201.21  child health social service programs under Minnesota Statutes, 
201.22  section 254A.17, subdivision 1.  
201.23     (8) Of the amount in paragraph (a), $200,000 is for the 
201.24  commissioner to study the extent of fetal alcohol syndrome in 
201.25  the state. 
201.26     (9) Of the amount in paragraph (a), $400,000 is transferred 
201.27  to the commissioner of human services for the intervention and 
201.28  advocacy program under Minnesota Statutes, section 254A.17, 
201.29  subdivision 1b. 
201.30     (10) Of the amount in paragraph (a), $850,000 is for the 
201.31  FAS community grant program under Minnesota Statutes, section 
201.32  145.9266, subdivision 4. 
201.33     (11) Of the amount in paragraph (a), $850,000 is 
201.34  transferred to the commissioner of human services to expand 
201.35  treatment services and halfway houses for pregnant women and 
201.36  women with children who abuse alcohol during pregnancy. 
202.1      (c) Notwithstanding chapter 645 or any other law to the 
202.2   contrary, if the fetal alcohol syndrome initiative in this 
202.3   article is enacted into law in the same or a substantially 
202.4   similar form during the 1998 regular legislative session in S.F. 
202.5   No. 3346 or other legislation, then the provisions in section 2 
202.6   and this subdivision are not effective. 
202.7      Sec. 10.  [EFFECTIVE DATES.] 
202.8      Sections 1, 6, and 8 are effective the day following final 
202.9   enactment.