1.1                          A bill for an act 
  1.2             relating to education; prekindergarten through grade 
  1.3             12; providing for general education; special programs; 
  1.4             lifework development; facilities and technology; 
  1.5             education excellence; other programs; nutrition 
  1.6             programs; libraries; education policy; and state 
  1.7             agencies; appropriating money; amending Minnesota 
  1.8             Statutes 1998, sections 13.46, subdivision 2; 41D.02, 
  1.9             subdivision 2; 120A.24, subdivision 1; 120A.40; 
  1.10            120B.30, subdivision 1; 120B.35; 121A.23; 121A.43, as 
  1.11            amended; 121A.61, subdivision 1; 122A.09, subdivision 
  1.12            4; 122A.18, by adding subdivisions; 122A.19, 
  1.13            subdivision 4; 122A.20, subdivisions 1 and 2; 122A.21; 
  1.14            122A.28; 122A.40, subdivisions 5, 7, and 16; 122A.41, 
  1.15            subdivision 4; 122A.60, subdivisions 1 and 3; 122A.61, 
  1.16            subdivision 1; 123A.05, subdivisions 2 and 3; 123A.06, 
  1.17            subdivisions 1 and 2; 123A.48, subdivision 10; 
  1.18            123B.02, subdivision 3; 123B.195; 123B.36, subdivision 
  1.19            1; 123B.49, subdivision 4; 123B.53, subdivisions 2, 4, 
  1.20            5, 6, and 7; 123B.54; 123B.57, subdivision 4; 123B.59, 
  1.21            subdivision 1; 123B.61; 123B.75, by adding a 
  1.22            subdivision; 123B.77, subdivision 4; 123B.83, 
  1.23            subdivision 4; 123B.90, subdivisions 2 and 3; 123B.91, 
  1.24            subdivision 1; 123B.92, subdivision 9; 124D.03, by 
  1.25            adding a subdivision; 124D.081, subdivision 3; 
  1.26            124D.10, subdivisions 3, 4, 5, 6, and 11; 124D.11, 
  1.27            subdivisions 1, 4, 6, and by adding a subdivision; 
  1.28            124D.453, subdivision 3; 124D.454, subdivision 5; 
  1.29            124D.65, subdivisions 1, 4, and 5; 124D.68, 
  1.30            subdivision 9; 124D.69, subdivision 1; 124D.86, 
  1.31            subdivisions 1 and 3; 124D.87; 124D.88, subdivision 3; 
  1.32            124D.89, subdivision 1; 124D.94, subdivisions 3, 6, 
  1.33            and 7; 125A.09, subdivisions 4 and 11; 125A.15; 
  1.34            125A.50, subdivisions 2 and 5; 125A.51; 125A.62; 
  1.35            125A.64; 125A.65, subdivisions 3, 5, 6, 7, 8, and 10; 
  1.36            125A.68, subdivision 1; 125A.69, subdivisions 1 and 3; 
  1.37            125A.70, subdivision 2; 125A.71, subdivision 3; 
  1.38            125A.72; 125A.73; 125A.75, subdivisions 3 and 8; 
  1.39            125A.76, subdivisions 1, 2, 4, and 5; 125A.79, 
  1.40            subdivisions 1, 2, and by adding subdivisions; 
  1.41            125B.05, subdivision 3; 125B.20; 126C.05, subdivisions 
  1.42            1, 3, 5, 6, and 7; 126C.10, subdivisions 1, 2, 4, 5, 
  1.43            6, 7, 8, 9, 10, 13, 14, 18, 19, 20, 21, and by adding 
  1.44            subdivisions; 126C.12, subdivisions 1 and 4; 126C.13, 
  1.45            subdivisions 1 and 2; 126C.15; 126C.17, subdivisions 
  1.46            1, 2, 4, 5, 6, and 9; 126C.40, subdivision 4; 126C.41, 
  2.1             subdivision 2; 126C.42, subdivisions 1 and 2; 126C.44; 
  2.2             126C.46; 126C.55, by adding a subdivision; 126C.63, 
  2.3             subdivisions 5 and 8; 126C.69, subdivisions 2 and 9; 
  2.4             127A.05, subdivision 1; 127A.41, subdivision 5; 
  2.5             127A.42, subdivisions 5 and 6; 127A.44, subdivision 2; 
  2.6             127A.45, subdivisions 2, 3, 4, 13, and by adding a 
  2.7             subdivision; 127A.47, subdivisions 1, 2, 7, and 8; 
  2.8             127A.49, subdivisions 2 and 3; 127A.51; 127A.60, 
  2.9             subdivision 1; 127A.66, subdivision 2; 128C.01, 
  2.10            subdivision 4; 128C.02, by adding a subdivision; 
  2.11            128C.20, subdivision 1; 129C.10, by adding a 
  2.12            subdivision; 169.01, subdivision 6; 169.03, 
  2.13            subdivision 6; 171.3215, subdivisions 2 and 4; 
  2.14            181.101; 209.07, by adding a subdivision; 241.021, 
  2.15            subdivision 1; 245A.04, by adding a subdivision; and 
  2.16            626.556, subdivision 10b, and by adding a subdivision; 
  2.17            Laws 1992, chapter 499, article 7, section 31, as 
  2.18            amended; Laws 1993, chapter 224, article 3, section 
  2.19            32, as amended; Laws 1995 First Special Session 
  2.20            chapter 3, article 12, section 7, as amended; Laws 
  2.21            1996, chapter 412, article 1, section 35; Laws 1997 
  2.22            First Special Session chapter 4, article 1, section 
  2.23            61, subdivisions 1, 2, 3, as amended, and 4; article 
  2.24            2, section 51, subdivision 29, as amended; article 3, 
  2.25            section 25, subdivision 6; article 5, section 22; 
  2.26            article 8, section 4; article 9, sections 6, 7, 
  2.27            subdivision 2, and 13; Laws 1998, chapter 398, article 
  2.28            9, section 7; chapter 404, section 5, subdivision 5; 
  2.29            and Laws 1999, chapter 123, section 22; proposing 
  2.30            coding for new law in Minnesota Statutes, chapters 
  2.31            121A; 123A; 124D; 125A; 127A; repealing Minnesota 
  2.32            Statutes 1998, sections 119A.04, subdivision 5; 
  2.33            120B.05; 123A.44; 123A.441; 123A.442; 123A.443; 
  2.34            123A.444; 123A.445; 123A.446; 123B.57, subdivisions 4, 
  2.35            5, and 7; 123B.58; 123B.59, subdivision 7; 123B.63, 
  2.36            subdivisions 1 and 2; 123B.64, subdivisions 1, 2, 3, 
  2.37            and 4; 123B.66; 123B.67; 123B.68; 123B.69; 123B.89; 
  2.38            123B.92, subdivisions 2, 4, 6, 7, 8, and 10; 124D.081, 
  2.39            subdivisions 7 and 8; 124D.112; 124D.113; 124D.116; 
  2.40            124D.453; 124D.65, subdivisions 1, 2, and 3; 124D.67; 
  2.41            124D.70; 125A.76, subdivision 6; 125A.77; 125A.79, 
  2.42            subdivision 3; 126C.05, subdivision 4; 126C.06; 
  2.43            127A.42, subdivision 8; 127A.45, subdivision 5; 
  2.44            127A.60, subdivisions 2, 3, and 4; 127A.61; 127A.62, 
  2.45            subdivision 2; 127A.64; 127A.66, subdivision 1; and 
  2.46            134.155; Minnesota Rules, parts 3500.3900; 3500.4000; 
  2.47            3500.4100; 3500.4200; and 3500.4300. 
  2.48  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.49                             ARTICLE 1 
  2.50                         GENERAL EDUCATION 
  2.51     Section 1.  Minnesota Statutes 1998, section 123B.92, 
  2.52  subdivision 9, is amended to read: 
  2.53     Subd. 9.  [NONPUBLIC PUPIL TRANSPORTATION AID.] (a) A 
  2.54  district's nonpublic pupil transportation aid for the 1996-1997 
  2.55  and later school years for transportation services for nonpublic 
  2.56  school pupils according to sections 123B.88, 123B.84 to 123B.86, 
  2.57  and this section, equals the sum of the amounts computed in 
  2.58  paragraphs (b) and (c).  This aid does not limit the obligation 
  2.59  to transport pupils under sections 123B.84 to 123B.87. 
  3.1      (b) For regular and excess transportation according to 
  3.2   subdivision 1, paragraph (b), clauses (1) and (2), an amount 
  3.3   equal to the product of: 
  3.4      (1) the district's actual expenditure per pupil transported 
  3.5   in the regular and excess transportation categories during the 
  3.6   second preceding school year; times 
  3.7      (2) the number of nonpublic school pupils residing in the 
  3.8   district who receive regular or excess transportation service or 
  3.9   reimbursement for the current school year; times 
  3.10     (3) the ratio of the formula allowance pursuant to section 
  3.11  126C.10, subdivision 2, for the current school year to the 
  3.12  formula allowance pursuant to section 126C.10, subdivision 2, 
  3.13  for the second preceding school year. 
  3.14     (c) For nonpublic nonregular transportation according to 
  3.15  subdivision 1, paragraph (b), clause (5), an amount equal to the 
  3.16  product of: 
  3.17     (1) the district's actual expenditure for nonpublic 
  3.18  nonregular transportation during the second preceding school 
  3.19  year; times 
  3.20     (2) the ratio of the formula allowance pursuant to section 
  3.21  126C.10, subdivision 2, for the current school year to the 
  3.22  formula allowance pursuant to section 126C.10, subdivision 2, 
  3.23  for the second preceding school year. 
  3.24     (d) Notwithstanding the amount of the formula allowance for 
  3.25  fiscal years 1997 and 1998 2000, 2001, and 2002 in section 
  3.26  126C.10, subdivision 2, the commissioner shall use the amount of 
  3.27  the formula allowance for the current year less $300 plus $87 in 
  3.28  determining the nonpublic pupil transportation revenue in 
  3.29  paragraphs (b) and (c) for fiscal years 1997 and 1998 year 2000, 
  3.30  and the amount of the formula allowance less $110 in determining 
  3.31  the nonpublic pupil transportation revenue in paragraphs (b) and 
  3.32  (c) for fiscal years 2001 and 2002. 
  3.33     Sec. 2.  Minnesota Statutes 1998, section 124D.11, 
  3.34  subdivision 1, is amended to read: 
  3.35     Subdivision 1.  [GENERAL EDUCATION REVENUE.] General 
  3.36  education revenue must be paid to a charter school as though it 
  4.1   were a district.  The general education revenue for 
  4.2   each adjusted marginal cost pupil unit is the state average 
  4.3   general education revenue per pupil unit, plus the referendum 
  4.4   equalization aid allowance in the pupil's district of residence, 
  4.5   minus an amount equal to the product of the formula allowance 
  4.6   according to section 126C.10, subdivision 2, times .0485, 
  4.7   calculated without basic skills revenue, transportation sparsity 
  4.8   revenue, and the transportation portion of the transition 
  4.9   revenue adjustment, plus basic skills revenue as though the 
  4.10  school were a school district. 
  4.11     Sec. 3.  Minnesota Statutes 1998, section 124D.65, 
  4.12  subdivision 1, is amended to read: 
  4.13     Subdivision 1.  [ADJUSTED LEP BASE REVENUE.] (a) A 
  4.14  district's adjusted limited English proficiency programs base 
  4.15  revenue for fiscal year 1996 and later 2000 equals the product 
  4.16  of: 
  4.17     (1) the district's base revenue for limited English 
  4.18  proficiency programs under this section and section 125A.77, 
  4.19  times 
  4.20     (2) the ratio of: 
  4.21     (i) the greater of 20 or the number of pupils of limited 
  4.22  English proficiency enrolled in the district during the current 
  4.23  fiscal year to 
  4.24     (ii) the greater of 20 or the number of pupils of limited 
  4.25  English proficiency enrolled in the district during the base 
  4.26  year. 
  4.27     (b) For the purposes of this section, the base year for 
  4.28  fiscal year 1996 is fiscal year 1995.  The base year for later 
  4.29  fiscal years is the second fiscal year preceding the fiscal year 
  4.30  for which aid shall be paid.  The current year is the fiscal 
  4.31  year for which aid shall be paid. 
  4.32     (c) For the purposes of this section, a teacher includes 
  4.33  nonlicensed personnel who provide direct instruction to students 
  4.34  of limited English proficiency under the supervision of a 
  4.35  licensed teacher. 
  4.36     Sec. 4.  Minnesota Statutes 1998, section 124D.65, 
  5.1   subdivision 5, is amended to read: 
  5.2      Subd. 5.  [SCHOOL DISTRICT LEP REVENUE.] (a) A school 
  5.3   district's limited English proficiency programs revenue for 
  5.4   fiscal year 1996 and later 2000 equals the state total limited 
  5.5   English proficiency programs revenue, minus the amount 
  5.6   determined under paragraph (b), times the ratio of the 
  5.7   district's adjusted limited English proficiency programs base 
  5.8   revenue to the state total adjusted limited English proficiency 
  5.9   programs base revenue. 
  5.10     (b) Notwithstanding paragraph (a), if the limited English 
  5.11  proficiency programs base revenue for a district equals zero, 
  5.12  the limited English proficiency programs revenue equals the sum 
  5.13  of the following amounts, computed using current year data: 
  5.14     (1) 68 percent of the salary of one full-time equivalent 
  5.15  teacher for each 40 pupils of limited English proficiency 
  5.16  enrolled, or 68 percent of the salary of one-half of a full-time 
  5.17  teacher in a district with 20 or fewer pupils of limited English 
  5.18  proficiency enrolled; and 
  5.19     (2) for supplies and equipment purchased or rented for use 
  5.20  in the instruction of pupils of limited English proficiency an 
  5.21  amount equal to 47 percent of the sum actually spent by the 
  5.22  district but not to exceed an average of $47 in any one school 
  5.23  year for each pupil of limited English proficiency receiving 
  5.24  instruction. 
  5.25     (c) A district's limited English proficiency programs 
  5.26  revenue for fiscal year 2001 and later equals the product of 
  5.27  $584 times the greater of 20 or the number of adjusted marginal 
  5.28  cost pupils of limited English proficiency enrolled in the 
  5.29  district during the current fiscal year. 
  5.30     Sec. 5.  Minnesota Statutes 1998, section 124D.68, 
  5.31  subdivision 9, is amended to read: 
  5.32     Subd. 9.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
  5.33  attending an eligible program full time under subdivision 3, 
  5.34  paragraph (d), the department must pay 90 percent of the 
  5.35  district's average general education revenue less compensatory 
  5.36  basic skills revenue to the eligible program and ten percent of 
  6.1   the district's average general education revenue 
  6.2   less compensatory basic skills revenue to the resident district 
  6.3   within 30 days after the eligible program verifies enrollment 
  6.4   using the form provided by the department.  For a pupil 
  6.5   attending an eligible program part time, revenue shall be 
  6.6   reduced proportionately, according to the amount of time the 
  6.7   pupil attends the program, and the payments to the eligible 
  6.8   program and the resident district shall be reduced accordingly.  
  6.9   A pupil for whom payment is made according to this section may 
  6.10  not be counted by any district for any purpose other than 
  6.11  computation of general education revenue.  If payment is made 
  6.12  for a pupil under this subdivision, a district shall not 
  6.13  reimburse a program under section 124D.69 for the same 
  6.14  pupil.  Compensatory Basic skills revenue shall be paid 
  6.15  according to section 126C.10, subdivision 3 4. 
  6.16     (b) The department must pay up to 100 percent of the 
  6.17  revenue to the eligible program if there is an agreement to that 
  6.18  effect between the school district and the eligible program.  
  6.19     Sec. 6.  Minnesota Statutes 1998, section 124D.69, 
  6.20  subdivision 1, is amended to read: 
  6.21     Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
  6.22  program, eligible under section 124D.68, subdivision 3, 
  6.23  paragraph (d), or subdivision 4, operated by a private 
  6.24  organization that has contracted with a school district to 
  6.25  provide educational services for eligible pupils under section 
  6.26  124D.68, subdivision 2, the district contracting with the 
  6.27  private organization must reimburse the provider an amount equal 
  6.28  to at least 90 percent of the district's average general 
  6.29  education less compensatory basic skills revenue per pupil unit 
  6.30  times the number of pupil units for pupils attending the 
  6.31  program.  Basic skills revenue shall be paid according to 
  6.32  section 126C.10, subdivision 4.  Compensatory revenue must be 
  6.33  allocated according to section 126C.15, subdivision 2.  For a 
  6.34  pupil attending the program part time, the revenue paid to the 
  6.35  program must be reduced proportionately, according to the amount 
  6.36  of time the pupil attends the program, and revenue paid to the 
  7.1   district shall be reduced accordingly.  Pupils for whom a 
  7.2   district provides reimbursement may not be counted by the 
  7.3   district for any purpose other than computation of general 
  7.4   education revenue.  If payment is made to a district or program 
  7.5   for a pupil under this section, the department must not make a 
  7.6   payment for the same pupil under section 124D.68, subdivision 9. 
  7.7      Sec. 7.  Minnesota Statutes 1998, section 124D.86, 
  7.8   subdivision 3, is amended to read: 
  7.9      Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 1999 2000 
  7.10  and later fiscal years, integration revenue equals the following 
  7.11  amounts: 
  7.12     (1) for independent school district No. 709, 
  7.13  Duluth, $193 $207 times the resident adjusted pupil units for 
  7.14  the school year; 
  7.15     (2) for independent school district No. 625, St. 
  7.16  Paul, $427 $446 times the resident adjusted pupil units for the 
  7.17  school year; 
  7.18     (3) for special school district No. 1, 
  7.19  Minneapolis, $523 $536 times the resident adjusted pupil units 
  7.20  for the school year; and 
  7.21     (4) for a district not listed in clause (1), (2), or (3) 
  7.22  that is required to implement a plan according to the 
  7.23  requirements of Minnesota Rules, parts 3535.0200 to 3535.2200, 
  7.24  the lesser of the actual cost of implementing the plan during 
  7.25  the fiscal year or $93 times the resident adjusted pupil units 
  7.26  for the school year. 
  7.27     Sec. 8.  Minnesota Statutes 1998, section 126C.05, 
  7.28  subdivision 1, is amended to read: 
  7.29     Subdivision 1.  [PUPIL UNIT.] Pupil units for each 
  7.30  Minnesota resident pupil in average daily membership enrolled in 
  7.31  the district of residence, in another district under sections 
  7.32  123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 
  7.33  124D.68; in a charter school under section 124D.10; or for whom 
  7.34  the resident district pays tuition under section 123A.18, 
  7.35  123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
  7.36  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
  8.1   125A.65, shall be counted according to this subdivision.  
  8.2      (a) A prekindergarten pupil with a disability who is 
  8.3   enrolled in a program approved by the commissioner and has an 
  8.4   individual education plan is counted as the ratio of the number 
  8.5   of hours of assessment and education service to 825 times 1.25 
  8.6   with a minimum of 0.28, but not more than one 1.25. 
  8.7      (b) A prekindergarten pupil who is assessed but determined 
  8.8   not to be handicapped is counted as the ratio of the number of 
  8.9   hours of assessment service to 825 times 1.25.  
  8.10     (c) A kindergarten pupil with a disability who is enrolled 
  8.11  in a program approved by the commissioner is counted as the 
  8.12  ratio of the number of hours of assessment and education 
  8.13  services required in the fiscal year by the pupil's individual 
  8.14  education program plan to 875, but not more than one. 
  8.15     (d) A kindergarten pupil who is not included in paragraph 
  8.16  (c) is counted as .53 .557 of a pupil unit for fiscal year 1995 
  8.17  2000 and thereafter. 
  8.18     (e) A pupil who is in any of grades 1 to 3 is counted as 
  8.19  1.115 pupil units for fiscal year 2000 and thereafter. 
  8.20     (f) A pupil who is any of grades 4 to 6 is counted as 1.06 
  8.21  pupil units for fiscal year 1995 and thereafter. 
  8.22     (f) (g) A pupil who is in any of grades 7 to 12 is counted 
  8.23  as 1.3 pupil units.  
  8.24     (g) (h) A pupil who is in the post-secondary enrollment 
  8.25  options program is counted as 1.3 pupil units.  
  8.26     Sec. 9.  Minnesota Statutes 1998, section 126C.05, 
  8.27  subdivision 3, is amended to read: 
  8.28     Subd. 3.  [COMPENSATION REVENUE PUPIL UNITS.] Compensation 
  8.29  revenue pupil units for fiscal year 1998 and thereafter must be 
  8.30  computed according to this subdivision.  
  8.31     (a) The compensation revenue concentration percentage for 
  8.32  each building in a district equals the product of 100 times the 
  8.33  ratio of:  
  8.34     (1) the sum of the number of pupils enrolled in the 
  8.35  building eligible to receive free lunch plus one-half of the 
  8.36  pupils eligible to receive reduced priced lunch on October 1 of 
  9.1   the previous fiscal year; to 
  9.2      (2) the number of pupils enrolled in the building on 
  9.3   October 1 of the previous fiscal year. 
  9.4      (b) The compensation revenue pupil weighting factor for a 
  9.5   building equals the lesser of one or the quotient obtained by 
  9.6   dividing the building's compensation revenue concentration 
  9.7   percentage by 80.0.  
  9.8      (c) The compensation revenue pupil units for a building 
  9.9   equals the product of:  
  9.10     (1) the sum of the number of pupils enrolled in the 
  9.11  building eligible to receive free lunch and one-half of the 
  9.12  pupils eligible to receive reduced priced lunch on October 1 of 
  9.13  the previous fiscal year; times 
  9.14     (2) the compensation revenue pupil weighting factor for the 
  9.15  building; times 
  9.16     (3) .60. 
  9.17     (d) Notwithstanding paragraphs (a) to (c), for charter 
  9.18  schools and contracted alternative programs in the first year of 
  9.19  operation, compensation revenue pupil units shall be computed 
  9.20  using data for the current fiscal year.  If the charter school 
  9.21  or contracted alternative program begins operation after October 
  9.22  1, compensatory revenue pupil units shall be computed based on 
  9.23  pupils enrolled on an alternate date determined by the 
  9.24  commissioner, and the compensation revenue pupil units shall be 
  9.25  prorated based on the ratio of the number of days of student 
  9.26  instruction to 170 days. 
  9.27     (e) The percentages in this subdivision must be based on 
  9.28  the count of individual pupils and not on a building average or 
  9.29  minimum. 
  9.30     Sec. 10.  Minnesota Statutes 1998, section 126C.05, 
  9.31  subdivision 5, is amended to read: 
  9.32     Subd. 5.  [ADJUSTED PUPIL UNITS.] (a) Adjusted pupil units 
  9.33  for a district or charter school means the sum of: 
  9.34     (1) the number of resident pupil units served, according to 
  9.35  subdivision 1g 7, plus 
  9.36     (2) shared time pupil units, according to section 126C.01, 
 10.1   subdivision 6, plus 
 10.2      (3) pupil units according to subdivision 1 for pupils 
 10.3   attending the district for which general education aid 
 10.4   adjustments are made according to section 127A.47, subdivision 
 10.5   7; minus 
 10.6      (4) pupil units according to subdivision 1 for resident 
 10.7   pupils attending other districts for which general education aid 
 10.8   adjustments are made according to section 127A.47, subdivision 7.
 10.9   whom the district or charter school pays tuition under section 
 10.10  123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
 10.11  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
 10.12  125A.65, minus 
 10.13     (3) pupil units according to subdivision 1 for whom the 
 10.14  district or charter school receives tuition under section 
 10.15  123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
 10.16  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
 10.17  125A.65. 
 10.18     (b) Adjusted marginal cost pupil units means the sum of .9 
 10.19  times the pupil units defined in paragraph (a) for the current 
 10.20  school year and .1 times the pupil units defined in paragraph 
 10.21  (a) for the previous school year. 
 10.22     Sec. 11.  Minnesota Statutes 1998, section 126C.05, 
 10.23  subdivision 6, is amended to read: 
 10.24     Subd. 6.  [RESIDENT PUPIL UNITS.] (a) Resident pupil units 
 10.25  for a district means the number of pupil units according to 
 10.26  subdivision 1 residing in the district. 
 10.27     (b) Resident marginal cost pupil units means the sum of .9 
 10.28  times the pupil units defined in paragraph (a) for the current 
 10.29  year and .1 times the pupil units defined in paragraph (a) for 
 10.30  the previous school year. 
 10.31     Sec. 12.  Minnesota Statutes 1998, section 126C.05, 
 10.32  subdivision 7, is amended to read: 
 10.33     Subd. 7.  [PUPIL UNITS SERVED.] Pupil units served for a 
 10.34  district or charter school means the number of pupil units 
 10.35  according to subdivision 1 enrolled in the district or charter 
 10.36  school. 
 11.1      Sec. 13.  Minnesota Statutes 1998, section 126C.10, 
 11.2   subdivision 1, is amended to read: 
 11.3      Subdivision 1.  [GENERAL EDUCATION REVENUE.] For fiscal 
 11.4   year 1999 2000 and thereafter, the general education revenue for 
 11.5   each district equals the sum of the district's basic revenue, 
 11.6   basic skills revenue, training and experience revenue, secondary 
 11.7   sparsity revenue, elementary sparsity revenue, transportation 
 11.8   sparsity revenue, total operating capital revenue, graduation 
 11.9   standards implementation revenue, equity revenue, referendum 
 11.10  offset adjustment, transition revenue, and supplemental revenue. 
 11.11     Sec. 14.  Minnesota Statutes 1998, section 126C.10, 
 11.12  subdivision 2, is amended to read: 
 11.13     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 11.14  district equals the formula allowance times the resident pupil 
 11.15  units for the school year.  The formula allowance for fiscal 
 11.16  year 1997 is $3,505.  The formula allowance for fiscal year 1998 
 11.17  is $3,581 and.  The formula allowance for fiscal year 1999 and 
 11.18  fiscal year 2000 is $3,530.  The formula allowance for fiscal 
 11.19  year 2000 is $3,740.  The formula allowance for fiscal year 2001 
 11.20  and subsequent fiscal years is $3,597 $3,875. 
 11.21     Sec. 15.  Minnesota Statutes 1998, section 126C.10, 
 11.22  subdivision 4, is amended to read: 
 11.23     Subd. 4.  [BASIC SKILLS REVENUE.] For fiscal year 1999 and 
 11.24  thereafter, a school district's basic skills revenue equals the 
 11.25  sum of: 
 11.26     (1) compensatory revenue under subdivision 3; plus 
 11.27     (2) limited English proficiency revenue according to 
 11.28  section 124D.65, subdivision 5; plus 
 11.29     (3) $190 times the limited English proficiency pupil units 
 11.30  according to section 126C.05, subdivision 17; plus 
 11.31     (4) the lesser of:  (i) $22.50 times the number of adjusted 
 11.32  marginal cost pupil units in kindergarten to grade 8; or (ii) 
 11.33  the amount of district money provided to match basic skills 
 11.34  revenue for the purposes described in section 126C.15. 
 11.35     Sec. 16.  Minnesota Statutes 1998, section 126C.10, 
 11.36  subdivision 5, is amended to read: 
 12.1      Subd. 5.  [TRAINING AND EXPERIENCE REVENUE.] The training 
 12.2   and experience revenue for each district equals the greater of 
 12.3   zero or the result of the following computation:  
 12.4      (1) subtract .8 from the training and experience index; 
 12.5      (2) multiply the result in clause (1) by the product of 
 12.6   $660 times the resident adjusted marginal cost pupil units for 
 12.7   the school year.  
 12.8      Sec. 17.  Minnesota Statutes 1998, section 126C.10, 
 12.9   subdivision 6, is amended to read: 
 12.10     Subd. 6.  [DEFINITIONS.] The definitions in this 
 12.11  subdivision apply only to subdivisions 7 and 8.  
 12.12     (a) "High school" means a secondary school that has pupils 
 12.13  enrolled in at least the 10th, 11th, and 12th grades.  If there 
 12.14  is no secondary school in the district that has pupils enrolled 
 12.15  in at least the 10th, 11th, and 12th grades, and the school is 
 12.16  at least 19 miles from the next nearest school, the commissioner 
 12.17  must designate one school in the district as a high school for 
 12.18  the purposes of this section. 
 12.19     (b) "Secondary average daily membership" means, for a 
 12.20  district that has only one high school, the average daily 
 12.21  membership of resident pupils served in grades 7 through 12.  
 12.22  For a district that has more than one high school, "secondary 
 12.23  average daily membership" for each high school means the product 
 12.24  of the average daily membership of resident pupils served in 
 12.25  grades 7 through 12 in the high school, times the ratio of six 
 12.26  to the number of grades in the high school. 
 12.27     (c) "Attendance area" means the total surface area of the 
 12.28  district, in square miles, divided by the number of high schools 
 12.29  in the district.  For a district that does not operate a high 
 12.30  school and is less than 19 miles from the nearest operating high 
 12.31  school, the attendance area equals zero. 
 12.32     (d) "Isolation index" for a high school means the square 
 12.33  root of 55 percent of the attendance area plus the distance in 
 12.34  miles, according to the usually traveled routes, between the 
 12.35  high school and the nearest high school.  For a district in 
 12.36  which there is located land defined in section 84A.01, 84A.20, 
 13.1   or 84A.31, the distance in miles is the sum of: 
 13.2      (1) the square root of one-half of the attendance area; and 
 13.3      (2) the distance from the border of the district to the 
 13.4   nearest high school. 
 13.5      (e) "Qualifying high school" means a high school that has 
 13.6   an isolation index greater than 23 and that has secondary 
 13.7   average daily membership of less than 400.  
 13.8      (f) "Qualifying elementary school" means an elementary 
 13.9   school that is located 19 miles or more from the nearest 
 13.10  elementary school or from the nearest elementary school within 
 13.11  the district and, in either case, has an elementary average 
 13.12  daily membership of an average of 20 or fewer per grade. 
 13.13     (g) "Elementary average daily membership" means, for a 
 13.14  district that has only one elementary school, the average daily 
 13.15  membership of resident pupils served in kindergarten through 
 13.16  grade 6.  For a district that has more than one elementary 
 13.17  school, "average daily membership" for each school means the 
 13.18  average daily membership of pupils served in kindergarten 
 13.19  through grade 6 multiplied by the ratio of seven to the number 
 13.20  of grades in the elementary school.  For a building in a 
 13.21  district where the nearest elementary school is at least 65 
 13.22  miles distant, pupils served must be used to determine average 
 13.23  daily membership. 
 13.24     Sec. 18.  Minnesota Statutes 1998, section 126C.10, 
 13.25  subdivision 7, is amended to read: 
 13.26     Subd. 7.  [SECONDARY SPARSITY REVENUE.] (a) A district's 
 13.27  secondary sparsity revenue for a school year equals the sum of 
 13.28  the results of the following calculation for each qualifying 
 13.29  high school in the district: 
 13.30     (1) the formula allowance for the school year, multiplied 
 13.31  by 
 13.32     (2) the secondary average daily membership of pupils served 
 13.33  in the high school, multiplied by 
 13.34     (3) the quotient obtained by dividing 400 minus the 
 13.35  secondary average daily membership by 400 plus the secondary 
 13.36  daily membership, multiplied by 
 14.1      (4) the lesser of 1.5 or the quotient obtained by dividing 
 14.2   the isolation index minus 23 by ten. 
 14.3      (b) A newly formed district that is the result of districts 
 14.4   combining under the cooperation and combination program or 
 14.5   consolidating under section 123A.48 must receive secondary 
 14.6   sparsity revenue equal to the greater of:  (1) the amount 
 14.7   calculated under paragraph (a) for the combined district; or (2) 
 14.8   the sum of the amounts of secondary sparsity revenue the former 
 14.9   districts had in the year prior to consolidation, increased for 
 14.10  any subsequent changes in the secondary sparsity formula. 
 14.11     Sec. 19.  Minnesota Statutes 1998, section 126C.10, 
 14.12  subdivision 8, is amended to read: 
 14.13     Subd. 8.  [ELEMENTARY SPARSITY REVENUE.] A district's 
 14.14  elementary sparsity revenue equals the sum of the following 
 14.15  amounts for each qualifying elementary school in the district:  
 14.16     (1) the formula allowance for the year, multiplied by 
 14.17     (2) the elementary average daily membership of pupils 
 14.18  served in the school, multiplied by 
 14.19     (3) the quotient obtained by dividing 140 minus the 
 14.20  elementary average daily membership by 140 plus the average 
 14.21  daily membership. 
 14.22     Sec. 20.  Minnesota Statutes 1998, section 126C.10, 
 14.23  subdivision 9, is amended to read: 
 14.24     Subd. 9.  [SUPPLEMENTAL REVENUE.] (a) A district's 
 14.25  supplemental revenue allowance for fiscal year 1994 and later 
 14.26  fiscal years equals the district's supplemental revenue for 
 14.27  fiscal year 1993 divided by the district's 1992-1993 resident 
 14.28  pupil units. 
 14.29     (b) A district's supplemental revenue allowance is reduced 
 14.30  for fiscal year 1995 and later according to subdivision 12. 
 14.31     (c) A district's supplemental revenue equals the 
 14.32  supplemental revenue allowance, if any, times its resident 
 14.33  adjusted marginal cost pupil units for that year.  
 14.34     (d) A district may cancel its supplemental revenue by 
 14.35  notifying the commissioner of education prior to June 30, 1994.  
 14.36  A district that is reorganizing under section 122A.35, 123A.46, 
 15.1   or 123A.48 may cancel its supplemental revenue by notifying the 
 15.2   commissioner of children, families, and learning before July 1 
 15.3   of the year of the reorganization.  If a district cancels its 
 15.4   supplemental revenue according to this paragraph, its 
 15.5   supplemental revenue allowance for fiscal year 1993 for purposes 
 15.6   of subdivision 12 and section 124A.03, subdivision 3b, equals 
 15.7   zero. 
 15.8      Sec. 21.  Minnesota Statutes 1998, section 126C.10, 
 15.9   subdivision 10, is amended to read: 
 15.10     Subd. 10.  [SUPPLEMENTAL LEVY.] To obtain supplemental 
 15.11  revenue, a district may levy an amount not more than the product 
 15.12  of its supplemental revenue for the school year times the lesser 
 15.13  of one or the ratio of its adjusted net tax capacity per 
 15.14  resident adjusted marginal cost pupil unit to $10,000 $8,404. 
 15.15     Sec. 22.  Minnesota Statutes 1998, section 126C.10, is 
 15.16  amended by adding a subdivision to read: 
 15.17     Subd. 12a.  [SUPPLEMENTAL REVENUE REDUCTION.] If a 
 15.18  district's ratio of 1992 adjusted net tax capacity divided by 
 15.19  1994-1995 actual pupil units to $9,025 is less than or equal to 
 15.20  .25, then the difference under subdivision 12, clause (2), is 
 15.21  equal to $0 for purposes of computing the district's 
 15.22  supplemental revenue under subdivision 9. 
 15.23     Sec. 23.  Minnesota Statutes 1998, section 126C.10, 
 15.24  subdivision 13, is amended to read: 
 15.25     Subd. 13.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
 15.26  fiscal year 1999 2000 and thereafter, total operating capital 
 15.27  revenue for a district equals the amount determined under 
 15.28  paragraph (b) or (c), plus $68 times the resident adjusted 
 15.29  marginal cost pupil units for the school year.  The revenue must 
 15.30  be placed in a reserved account in the general fund and may only 
 15.31  be used according to subdivision 14. 
 15.32     (b) For fiscal years 1999 2000 and later, capital revenue 
 15.33  for a district equals $100 times the district's maintenance cost 
 15.34  index times its resident adjusted marginal cost pupil units for 
 15.35  the school year. 
 15.36     (c) For 1996 and later fiscal years, the previous formula 
 16.1   revenue for a district equals $128 times its resident pupil 
 16.2   units for the school year. 
 16.3      (d) For fiscal years 1998 2000 and later, the revenue for a 
 16.4   district that operates a program under section 124D.128, is 
 16.5   increased by an amount equal to $30 times the number of resident 
 16.6   marginal cost pupil units served at the site where the program 
 16.7   is implemented. 
 16.8      Sec. 24.  Minnesota Statutes 1998, section 126C.10, 
 16.9   subdivision 14, is amended to read: 
 16.10     Subd. 14.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
 16.11  operating capital revenue may be used only for the following 
 16.12  purposes: 
 16.13     (1) to acquire land for school purposes; 
 16.14     (2) to acquire or construct buildings for school purposes; 
 16.15     (3) to rent or lease buildings, including the costs of 
 16.16  building repair or improvement that are part of a lease 
 16.17  agreement; 
 16.18     (4) to improve and repair school sites and buildings, and 
 16.19  equip or reequip school buildings with permanent attached 
 16.20  fixtures; 
 16.21     (5) for a surplus school building that is used 
 16.22  substantially for a public nonschool purpose; 
 16.23     (6) to eliminate barriers or increase access to school 
 16.24  buildings by individuals with a disability; 
 16.25     (7) to bring school buildings into compliance with the 
 16.26  Uniform Fire Code adopted according to chapter 299F; 
 16.27     (8) to remove asbestos from school buildings, encapsulate 
 16.28  asbestos, or make asbestos-related repairs; 
 16.29     (9) to clean up and dispose of polychlorinated biphenyls 
 16.30  found in school buildings; 
 16.31     (10) to clean up, remove, dispose of, and make repairs 
 16.32  related to storing heating fuel or transportation fuels such as 
 16.33  alcohol, gasoline, fuel oil, and special fuel, as defined in 
 16.34  section 296A.01; 
 16.35     (11) for energy audits for school buildings and to modify 
 16.36  buildings if the audit indicates the cost of the modification 
 17.1   can be recovered within ten years; 
 17.2      (12) to improve buildings that are leased according to 
 17.3   section 123B.51, subdivision 4; 
 17.4      (13) to pay special assessments levied against school 
 17.5   property but not to pay assessments for service charges; 
 17.6      (14) to pay principal and interest on state loans for 
 17.7   energy conservation according to section 216C.37 or loans made 
 17.8   under the Northeast Minnesota Economic Protection Trust Fund Act 
 17.9   according to sections 298.292 to 298.298; 
 17.10     (15) to purchase or lease interactive telecommunications 
 17.11  equipment; 
 17.12     (16) by board resolution, to transfer money into the debt 
 17.13  redemption fund to:  (i) pay the amounts needed to meet, when 
 17.14  due, principal and interest payments on certain obligations 
 17.15  issued according to chapter 475; or (ii) pay principal and 
 17.16  interest on debt service loans or capital loans according to 
 17.17  section 126C.70; 
 17.18     (17) to pay capital expenditure equipment-related operating 
 17.19  capital-related assessments of any entity formed under a 
 17.20  cooperative agreement between two or more districts; 
 17.21     (18) to purchase or lease computers and related materials, 
 17.22  copying machines, telecommunications equipment, and other 
 17.23  noninstructional equipment; 
 17.24     (19) to purchase or lease assistive technology or equipment 
 17.25  for instructional programs; 
 17.26     (20) to purchase textbooks; 
 17.27     (21) to purchase new and replacement library books or 
 17.28  technology; 
 17.29     (22) to purchase vehicles; 
 17.30     (23) to purchase or lease telecommunications equipment, 
 17.31  computers, and related equipment for integrated information 
 17.32  management systems for: 
 17.33     (i) managing and reporting learner outcome information for 
 17.34  all students under a results-oriented graduation rule; 
 17.35     (ii) managing student assessment, services, and achievement 
 17.36  information required for students with individual education 
 18.1   plans; and 
 18.2      (iii) other classroom information management needs; and 
 18.3      (24) to pay personnel costs directly related to the 
 18.4   acquisition, operation, and maintenance of telecommunications 
 18.5   systems, computers, related equipment, and network and 
 18.6   applications software. 
 18.7      Sec. 25.  Minnesota Statutes 1998, section 126C.10, 
 18.8   subdivision 18, is amended to read: 
 18.9      Subd. 18.  [TRANSPORTATION SPARSITY REVENUE ALLOWANCE.] (a) 
 18.10  A district's transportation sparsity allowance equals the 
 18.11  greater of zero or the result of the following computation: 
 18.12     (i) Multiply the formula allowance according to subdivision 
 18.13  2, by .1469. 
 18.14     (ii) Multiply the result in clause (i) by the district's 
 18.15  sparsity index raised to the 26/100 power. 
 18.16     (iii) Multiply the result in clause (ii) by the district's 
 18.17  density index raised to the 13/100 power. 
 18.18     (iv) Multiply the formula allowance according to 
 18.19  subdivision 2, by .0485. 
 18.20     (v) Subtract the result in clause (iv) from the result in 
 18.21  clause (iii). 
 18.22     (b) Transportation sparsity revenue is equal to the 
 18.23  transportation sparsity allowance times the resident adjusted 
 18.24  marginal cost pupil units. 
 18.25     Sec. 26.  Minnesota Statutes 1998, section 126C.10, 
 18.26  subdivision 19, is amended to read: 
 18.27     Subd. 19.  [TRANSITION ALLOWANCE.] (a) A district's 
 18.28  transportation transition allowance for fiscal year 1998 and 
 18.29  later equals the result of the following: 
 18.30     (1) if the result in subdivision 18, paragraph (a), clause 
 18.31  (iii), for fiscal year 1998 is less than the fiscal year 1996 
 18.32  base allowance, the transportation transition allowance equals 
 18.33  the fiscal year 1996 base allowance minus the result in 
 18.34  subdivision 18, paragraph (a), clause (iii); or 
 18.35     (2) if the result in subdivision 18, paragraph (a), clause 
 18.36  (iii), for fiscal year 1998 and later is greater than or equal 
 19.1   to the fiscal year 1996 base allowance, the transportation 
 19.2   transition allowance equals zero. 
 19.3      (b) A district's compensatory transition allowance equals 
 19.4   the greater of zero or the difference between:  
 19.5      (1) the amount of compensatory revenue the district would 
 19.6   have received under Minnesota Statutes 1996, section 124A.22, 
 19.7   subdivision 3, for fiscal year 1998 computed using a basic 
 19.8   formula allowance of $3,281; and 
 19.9      (2) the amount the district receives under subdivision 3; 
 19.10  divided by 
 19.11     (3) the district's actual pupil units for fiscal year 1998. 
 19.12     (c) A district's cooperation transition allowance for 
 19.13  fiscal year 2001 and later equals the greater of zero or the 
 19.14  difference between:  
 19.15     (1) $25,000; and 
 19.16     (2) $67 times the district's resident pupil units for 
 19.17  fiscal year 2001 divided by; 
 19.18     (3) the district's resident pupil units for fiscal year 
 19.19  2001. 
 19.20     (d) A district's transition allowance for fiscal year years 
 19.21  1999 and 2000 is equal to the sum of its transportation 
 19.22  transition allowance and its compensatory transition allowance.  
 19.23  A district's transition allowance for fiscal year 2000 2001 and 
 19.24  thereafter is equal to the sum of its transportation transition 
 19.25  allowance, its compensatory transition allowance, and its 
 19.26  cooperation transition allowance. 
 19.27     Sec. 27.  Minnesota Statutes 1998, section 126C.10, 
 19.28  subdivision 20, is amended to read: 
 19.29     Subd. 20.  [TRANSITION REVENUE ADJUSTMENT.] A district's 
 19.30  transition revenue adjustment equals the district's transition 
 19.31  allowance times the resident adjusted marginal cost pupil units 
 19.32  for the school year. 
 19.33     Sec. 28.  Minnesota Statutes 1998, section 126C.10, 
 19.34  subdivision 21, is amended to read: 
 19.35     Subd. 21.  [TRANSITION LEVY ADJUSTMENT.] A district's 
 19.36  general education levy shall be adjusted by an amount equal to 
 20.1   the district's transition revenue times the lesser of 1 or the 
 20.2   ratio of its adjusted net tax capacity per resident adjusted 
 20.3   marginal cost pupil unit to $10,000 $8,404. 
 20.4      Sec. 29.  Minnesota Statutes 1998, section 126C.10, is 
 20.5   amended by adding a subdivision to read: 
 20.6      Subd. 23.  [REFERENDUM OFFSET ADJUSTMENT.] A district that 
 20.7   qualifies for the referendum allowance reduction under section 
 20.8   126C.17, subdivision 12, and whose referendum allowance under 
 20.9   section 126C.17, subdivision 1, as adjusted under section 
 20.10  126C.17, subdivisions 2 and 12, does not exceed the referendum 
 20.11  allowance limit under section 126C.17, subdivision 2, clause 
 20.12  (2), shall receive a referendum offset adjustment.  In fiscal 
 20.13  year 2000 and thereafter, the referendum offset adjustment is 
 20.14  equal to $25 per resident pupil unit. 
 20.15     Sec. 30.  Minnesota Statutes 1998, section 126C.10, is 
 20.16  amended by adding a subdivision to read: 
 20.17     Subd. 24.  [EQUITY REVENUE.] (a) A school district 
 20.18  qualifies for equity revenue if the school district's adjusted 
 20.19  marginal cost pupil unit amount of basic revenue, supplemental 
 20.20  revenue, transition revenue, and referendum revenue is less than 
 20.21  the 90th percentile of school districts in its equity region for 
 20.22  those revenue categories and the school district's 
 20.23  administrative offices are not located in a city of the first 
 20.24  class on July 1, 1999. 
 20.25     (b) Equity revenue for a qualifying district that receives 
 20.26  referendum revenue under section 126C.17, subdivision 4, equals 
 20.27  the product of (1) the district's adjusted marginal cost pupil 
 20.28  units for that year; times (2) the sum of (i) $10, plus (ii) 
 20.29  $30, times the school district's equity index computed under 
 20.30  section 126C.10, subdivision 6. 
 20.31     (c) Equity revenue for a qualifying district that does not 
 20.32  receive referendum revenue under section 126C.17, subdivision 4, 
 20.33  equals the product of the district's adjusted marginal cost 
 20.34  pupil units for that year times $10. 
 20.35     Sec. 31.  Minnesota Statutes 1998, section 126C.10, is 
 20.36  amended by adding a subdivision to read: 
 21.1      Subd. 25.  [REGIONAL EQUITY GAP.] The regional equity gap 
 21.2   equals the difference between the fifth and the 90th percentile 
 21.3   of adjusted general revenue per marginal cost pupil unit. 
 21.4      Sec. 32.  Minnesota Statutes 1998, section 126C.10, is 
 21.5   amended by adding a subdivision to read: 
 21.6      Subd. 26.  [DISTRICT EQUITY GAP.] A district's equity gap 
 21.7   equals the greater of zero or the difference between the 
 21.8   district's adjusted general revenue and the regional 90th 
 21.9   percentile of adjusted general revenue per marginal cost pupil 
 21.10  unit. 
 21.11     Sec. 33.  Minnesota Statutes 1998, section 126C.10, is 
 21.12  amended by adding a subdivision to read: 
 21.13     Subd. 27.  [DISTRICT EQUITY INDEX.] A district's equity 
 21.14  index equals the ratio of the sum of the district equity gap 
 21.15  amount to the regional equity gap amount. 
 21.16     Sec. 34.  Minnesota Statutes 1998, section 126C.10, is 
 21.17  amended by adding a subdivision to read: 
 21.18     Subd. 28.  [EQUITY REGION.] For the purposes of computing 
 21.19  equity revenue under subdivision 23, a district whose 
 21.20  administrative offices on July 1, 1999, is located in Anoka, 
 21.21  Carver, Dakota, Hennepin, Ramsey, Scott, or Washington county is 
 21.22  part of the metro equity region.  Districts whose administrative 
 21.23  offices on July 1, 1999, are not located in Anoka, Carver, 
 21.24  Dakota, Hennepin, Ramsey, Scott, or Washington county are part 
 21.25  of the rural equity region. 
 21.26     Sec. 35.  Minnesota Statutes 1998, section 126C.12, 
 21.27  subdivision 1, is amended to read: 
 21.28     Subdivision 1.  [REVENUE.] Of a district's general 
 21.29  education revenue an amount equal to the sum of the number of 
 21.30  elementary fund balance pupils in average daily membership 
 21.31  defined in section 126C.05, subdivision 5, and one-half of the 
 21.32  number of kindergarten fund balance pupils in average daily 
 21.33  membership as defined in section 126C.05, subdivision 5, times 
 21.34  .06 for fiscal year 1995 and thereafter times the formula 
 21.35  allowance must be reserved according to this section. for fiscal 
 21.36  year 2000 and thereafter each school district shall reserve an 
 22.1   amount equal to the formula allowance multiplied by the 
 22.2   following calculation: 
 22.3      (1) the sum of adjusted marginal cost pupil units in 
 22.4   average daily membership, according to section 126C.05, 
 22.5   subdivision 5, in kindergarten times .057; plus 
 22.6      (2) the sum of adjusted marginal cost pupil units in 
 22.7   average daily membership, according to section 126C.05, 
 22.8   subdivision 5, in grades 1 to 3 times .115; plus 
 22.9      (3) the sum of adjusted marginal cost pupil units in 
 22.10  average daily membership, according to section 126C.05, 
 22.11  subdivision 5, in grades 4 to 6 times .06. 
 22.12     Sec. 36.  Minnesota Statutes 1998, section 126C.12, 
 22.13  subdivision 4, is amended to read: 
 22.14     Subd. 4.  [REVENUE USE.] (a) Revenue must be used according 
 22.15  to either paragraph (b) or (c). 
 22.16     (b) Revenue must be used to reduce and maintain the 
 22.17  district's instructor to learner ratios in kindergarten through 
 22.18  grade 6 to a level of 1 to 17 on average.  The district must 
 22.19  prioritize the use of the revenue to attain this level initially 
 22.20  in kindergarten and grade 1 and then through the subsequent 
 22.21  grades as revenue is available.  
 22.22     (c) The revenue may be used to prepare and use an 
 22.23  individualized learning plan for each learner.  A district must 
 22.24  not increase the district wide instructor-to-learner ratios in 
 22.25  other grades as a result of reducing instructor-to-learner 
 22.26  ratios in kindergarten through grade 6.  Revenue may not be used 
 22.27  to provide instructor preparation time or to provide the 
 22.28  district's share of revenue required under section 124D.67.  A 
 22.29  district may use a portion of the revenue reserved under this 
 22.30  section to employ up to the same number of full-time equivalent 
 22.31  education assistants or aides as the district employed during 
 22.32  the 1992-1993 school year under Minnesota Statutes 1992, section 
 22.33  124.331, subdivision 2. 
 22.34     Sec. 37.  Minnesota Statutes 1998, section 126C.13, 
 22.35  subdivision 1, is amended to read: 
 22.36     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 23.1   commissioner must establish the general education tax rate by 
 23.2   July 1 of each year for levies payable in the following year.  
 23.3   The general education tax capacity rate must be a rate, rounded 
 23.4   up to the nearest hundredth of a percent, that, when applied to 
 23.5   the adjusted net tax capacity for all districts, raises the 
 23.6   amount specified in this subdivision.  The general education tax 
 23.7   rate must be the rate that raises $1,385,500,000 for fiscal year 
 23.8   1999, $1,325,500,000 for fiscal year 2000, and $1,387,100,000 
 23.9   $1,330,000,000 for fiscal year 2001, and later fiscal years.  
 23.10  The general education tax rate may not be changed due to changes 
 23.11  or corrections made to a district's adjusted net tax capacity 
 23.12  after the tax rate has been established.  If the levy target for 
 23.13  fiscal year 1999 or fiscal year 2000 is changed by another law 
 23.14  enacted during the 1997 or 1998 session, the commissioner shall 
 23.15  reduce the general education levy target in this section by the 
 23.16  amount of the reduction in the enacted law. 
 23.17     Sec. 38.  Minnesota Statutes 1998, section 126C.13, 
 23.18  subdivision 2, is amended to read: 
 23.19     Subd. 2.  [GENERAL EDUCATION LEVY.] To obtain general 
 23.20  education revenue, excluding transition revenue and supplemental 
 23.21  revenue, a district may levy an amount not to exceed the general 
 23.22  education tax rate times the adjusted net tax capacity of the 
 23.23  district for the preceding year.  If the amount of the general 
 23.24  education levy would exceed the general education revenue, 
 23.25  excluding transition revenue and supplemental revenue, the 
 23.26  general education levy must be determined according to 
 23.27  subdivision 3.  
 23.28     Sec. 39.  Minnesota Statutes 1998, section 126C.15, is 
 23.29  amended to read: 
 23.30     126C.15 [COMPENSATORY EDUCATION REVENUE.] 
 23.31     Subdivision 1.  [USE OF THE REVENUE.] The compensatory 
 23.32  education basic skills revenue under section 126C.10, 
 23.33  subdivision 3 4, and the portion of the transition revenue 
 23.34  adjustment under section 126C.10, subdivision 20, attributable 
 23.35  to the compensatory transition allowance under section 126C.10, 
 23.36  subdivision 19, paragraph (b), must be reserved and used to meet 
 24.1   the educational needs of pupils who enroll under-prepared to 
 24.2   learn and whose progress toward meeting state or local content 
 24.3   or performance standards is below the level that is appropriate 
 24.4   for learners of their age.  Any of the following may be provided 
 24.5   to meet these learners' needs: 
 24.6      (1) direct instructional services under the assurance of 
 24.7   mastery program according to section 124D.66; 
 24.8      (2) remedial instruction in reading, language arts, 
 24.9   mathematics, other content areas, or study skills to improve the 
 24.10  achievement level of these learners; 
 24.11     (3) additional teachers and teacher aides to provide more 
 24.12  individualized instruction to these learners through individual 
 24.13  tutoring, lower instructor-to-learner ratios, or team teaching; 
 24.14     (4) a longer school day or week during the regular school 
 24.15  year or through a summer program that may be offered directly by 
 24.16  the site or under a performance-based contract with a 
 24.17  community-based organization; 
 24.18     (5) comprehensive and ongoing staff development consistent 
 24.19  with district and site plans according to section 122A.60, for 
 24.20  teachers, teacher aides, principals, and other personnel to 
 24.21  improve their ability to identify the needs of these learners 
 24.22  and provide appropriate remediation, intervention, 
 24.23  accommodations, or modifications; 
 24.24     (6) instructional materials and technology appropriate for 
 24.25  meeting the individual needs of these learners; 
 24.26     (7) programs to reduce truancy, encourage completion of 
 24.27  high school, enhance self-concept, provide health services, 
 24.28  provide nutrition services, provide a safe and secure learning 
 24.29  environment, provide coordination for pupils receiving services 
 24.30  from other governmental agencies, provide psychological services 
 24.31  to determine the level of social, emotional, cognitive, and 
 24.32  intellectual development, and provide counseling services, 
 24.33  guidance services, and social work services; 
 24.34     (8) bilingual programs, bicultural programs, and programs 
 24.35  for learners of limited English proficiency; 
 24.36     (9) all day kindergarten; 
 25.1      (10) extended school day and extended school year programs; 
 25.2      (11) substantial parent involvement in developing and 
 25.3   implementing remedial education or intervention plans for a 
 25.4   learner, including learning contracts between the school, the 
 25.5   learner, and the parent that establish achievement goals and 
 25.6   responsibilities of the learner and the learner's parent or 
 25.7   guardian; and 
 25.8      (12) other methods to increase achievement, as needed.  
 25.9      Subd. 2.  [BUILDING ALLOCATION.] (a) A district must 
 25.10  allocate its compensatory revenue to each school building in the 
 25.11  district where the children who have generated the revenue are 
 25.12  served. 
 25.13     (b) Notwithstanding paragraph (a), for fiscal years 1999, 
 25.14  and 2000, and 2001, upon approval by the commissioner, a 
 25.15  district may allocate up to five percent of the amount of 
 25.16  compensatory revenue that the district would have received under 
 25.17  Minnesota Statutes 1996, section 126C.10 124A.22, subdivision 3, 
 25.18  for fiscal year 1998, computed using a basic formula allowance 
 25.19  of $3,581 to school sites according to a plan adopted by the 
 25.20  school board. 
 25.21     (c) For the purposes of this section and section 126C.05, 
 25.22  subdivision 3, "building" means education site as defined in 
 25.23  section 123B.04, subdivision 1. 
 25.24     (d) If the pupil is served at a site other than one owned 
 25.25  and operated by the district, the revenue shall be paid to the 
 25.26  district and used for services for pupils who generate the 
 25.27  revenue. 
 25.28     Subd. 3.  [RECOMMENDATION.] A school site decision-making 
 25.29  team, as defined in section 123B.04, subdivision 3, paragraph 
 25.30  (a), or the instruction and curriculum advisory committee under 
 25.31  section 120B.11, if the school has no school site decision team, 
 25.32  shall recommend how the compensatory education revenue will be 
 25.33  used to carry out the purpose of this section. 
 25.34     Subd. 4.  [SEPARATE ACCOUNTS.] Each district that 
 25.35  receives compensatory education basic skills revenue shall 
 25.36  maintain separate accounts to identify expenditures for salaries 
 26.1   and programs related to basic skills revenue. 
 26.2      Subd. 5.  [ANNUAL EXPENDITURE REPORT.] Each year a district 
 26.3   that receives compensatory education basic skills revenue must 
 26.4   submit a report identifying the expenditures it incurred to meet 
 26.5   the needs of eligible learners under subdivision 1.  The report 
 26.6   must conform to uniform financial and reporting standards 
 26.7   established for this purpose. 
 26.8      Sec. 40.  Minnesota Statutes 1998, section 126C.17, 
 26.9   subdivision 1, is amended to read: 
 26.10     Subdivision 1.  [REFERENDUM ALLOWANCE.] A district's 
 26.11  referendum revenue allowance equals the referendum revenue 
 26.12  authority for that year divided by its resident marginal cost 
 26.13  pupil units for that school year. 
 26.14     Sec. 41.  Minnesota Statutes 1998, section 126C.17, 
 26.15  subdivision 2, is amended to read: 
 26.16     Subd. 2.  [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 
 26.17  subdivision 1, a district's referendum allowance must not exceed 
 26.18  the greater of:  
 26.19     (1) the district's referendum allowance for fiscal year 
 26.20  1994; 
 26.21     (2) 25 percent of the formula allowance minus $300 for 
 26.22  fiscal year 1997 and later; or 
 26.23     (3) for a newly reorganized district created after July 1, 
 26.24  1994, the sum of the referendum revenue authority for the 
 26.25  reorganizing districts for the fiscal year preceding the 
 26.26  reorganization, divided by the sum of the resident marginal cost 
 26.27  pupil units of the reorganizing districts for the fiscal year 
 26.28  preceding the reorganization. 
 26.29     Sec. 42.  Minnesota Statutes 1998, section 126C.17, 
 26.30  subdivision 4, is amended to read: 
 26.31     Subd. 4.  [TOTAL REFERENDUM REVENUE.] The total referendum 
 26.32  revenue for each district equals the district's referendum 
 26.33  allowance times the resident marginal cost pupil units for the 
 26.34  school year. 
 26.35     Sec. 43.  Minnesota Statutes 1998, section 126C.17, 
 26.36  subdivision 5, is amended to read: 
 27.1      Subd. 5.  [REFERENDUM EQUALIZATION REVENUE.] (a) A 
 27.2   district's referendum equalization revenue equals $350 the 
 27.3   referendum equalization allowance times the district's resident 
 27.4   marginal cost pupil units for that year.  
 27.5      (b) The referendum equalization allowance equals $350 for 
 27.6   fiscal year 2000 and $415 for fiscal year 2001 and later. 
 27.7      (c) Referendum equalization revenue must not exceed a 
 27.8   district's total referendum revenue for that year. 
 27.9      Sec. 44.  Minnesota Statutes 1998, section 126C.17, 
 27.10  subdivision 6, is amended to read: 
 27.11     Subd. 6.  [REFERENDUM EQUALIZATION LEVY.] (a) For fiscal 
 27.12  year 1999 and thereafter, A district's referendum equalization 
 27.13  levy for a referendum levied against the referendum market value 
 27.14  of all taxable property as defined in section 126C.01, 
 27.15  subdivision 3, equals the district's referendum equalization 
 27.16  revenue times the lesser of one or the ratio of the district's 
 27.17  referendum market value per resident marginal cost pupil unit to 
 27.18  $476,000. 
 27.19     (b) For fiscal year 1999 and thereafter, A district's 
 27.20  referendum equalization levy for a referendum levied against the 
 27.21  net tax capacity of all taxable property equals the district's 
 27.22  referendum equalization revenue times the lesser of one or the 
 27.23  ratio of the district's adjusted net tax capacity per resident 
 27.24  marginal cost pupil unit to $10,000 $8,404. 
 27.25     Sec. 45.  Minnesota Statutes 1998, section 126C.17, 
 27.26  subdivision 9, is amended to read: 
 27.27     Subd. 9.  [REFERENDUM REVENUE.] (a) The revenue authorized 
 27.28  by section 126C.10, subdivision 1, may be increased in the 
 27.29  amount approved by the voters of the district at a referendum 
 27.30  called for the purpose.  The referendum may be called by the 
 27.31  board or shall be called by the board upon written petition of 
 27.32  qualified voters of the district.  The referendum must be 
 27.33  conducted one or two calendar years before the increased levy 
 27.34  authority, if approved, first becomes payable.  Only one 
 27.35  election to approve an increase may be held in a calendar year.  
 27.36  Unless the referendum is conducted by mail under paragraph (g), 
 28.1   the referendum must be held on the first Tuesday after the first 
 28.2   Monday in November.  The ballot must state the maximum amount of 
 28.3   the increased revenue per resident marginal cost pupil unit, the 
 28.4   estimated referendum tax rate as a percentage of market value in 
 28.5   the first year it is to be levied, and that the revenue must be 
 28.6   used to finance school operations.  The ballot may state a 
 28.7   schedule, determined by the board, of increased revenue per 
 28.8   resident pupil units that differs from year to year over the 
 28.9   number of years for which the increased revenue is authorized.  
 28.10  If the ballot contains a schedule showing different amounts, it 
 28.11  must also indicate the estimated referendum tax rate as a 
 28.12  percent of market value for the amount specified for the first 
 28.13  year and for the maximum amount specified in the schedule.  The 
 28.14  ballot may state that existing referendum levy authority is 
 28.15  expiring.  In this case, the ballot may also compare the 
 28.16  proposed levy authority to the existing expiring levy authority, 
 28.17  and express the proposed increase as the amount, if any, over 
 28.18  the expiring referendum levy authority.  The ballot must 
 28.19  designate the specific number of years, not to exceed ten, for 
 28.20  which the referendum authorization applies.  The notice required 
 28.21  under section 275.60 may be modified to read, in cases of 
 28.22  renewing existing levies: 
 28.23     "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
 28.24     FOR A PROPERTY TAX INCREASE." 
 28.25     The ballot may contain a textual portion with the 
 28.26  information required in this subdivision and a question stating 
 28.27  substantially the following:  
 28.28     "Shall the increase in the revenue proposed by (petition 
 28.29  to) the board of ........., School District No. .., be approved?"
 28.30     If approved, an amount equal to the approved revenue per 
 28.31  resident marginal cost pupil unit times the resident marginal 
 28.32  cost pupil units for the school year beginning in the year after 
 28.33  the levy is certified shall be authorized for certification for 
 28.34  the number of years approved, if applicable, or until revoked or 
 28.35  reduced by the voters of the district at a subsequent referendum.
 28.36     (b) The board must prepare and deliver by first class mail 
 29.1   at least 15 days but no more than 30 days before the day of the 
 29.2   referendum to each taxpayer a notice of the referendum and the 
 29.3   proposed revenue increase.  The board need not mail more than 
 29.4   one notice to any taxpayer.  For the purpose of giving mailed 
 29.5   notice under this subdivision, owners must be those shown to be 
 29.6   owners on the records of the county auditor or, in any county 
 29.7   where tax statements are mailed by the county treasurer, on the 
 29.8   records of the county treasurer.  Every property owner whose 
 29.9   name does not appear on the records of the county auditor or the 
 29.10  county treasurer is deemed to have waived this mailed notice 
 29.11  unless the owner has requested in writing that the county 
 29.12  auditor or county treasurer, as the case may be, include the 
 29.13  name on the records for this purpose.  The notice must project 
 29.14  the anticipated amount of tax increase in annual dollars and 
 29.15  annual percentage for typical residential homesteads, 
 29.16  agricultural homesteads, apartments, and commercial-industrial 
 29.17  property within the school district. 
 29.18     The notice for a referendum may state that an existing 
 29.19  referendum levy is expiring and project the anticipated amount 
 29.20  of increase over the existing referendum levy in the first year, 
 29.21  if any, in annual dollars and annual percentage for typical 
 29.22  residential homesteads, agricultural homesteads, apartments, and 
 29.23  commercial-industrial property within the district. 
 29.24     The notice must include the following statement:  "Passage 
 29.25  of this referendum will result in an increase in your property 
 29.26  taxes."  However, in cases of renewing existing levies, the 
 29.27  notice may include the following statement:  "Passage of this 
 29.28  referendum may result in an increase in your property taxes." 
 29.29     (c) A referendum on the question of revoking or reducing 
 29.30  the increased revenue amount authorized pursuant to paragraph 
 29.31  (a) may be called by the board and shall be called by the board 
 29.32  upon the written petition of qualified voters of the district.  
 29.33  A referendum to revoke or reduce the levy amount must be based 
 29.34  upon the dollar amount, local tax rate, or amount per resident 
 29.35  marginal cost pupil unit, that was stated to be the basis for 
 29.36  the initial authorization.  Revenue approved by the voters of 
 30.1   the district pursuant to paragraph (a) must be received at least 
 30.2   once before it is subject to a referendum on its revocation or 
 30.3   reduction for subsequent years.  Only one revocation or 
 30.4   reduction referendum may be held to revoke or reduce referendum 
 30.5   revenue for any specific year and for years thereafter. 
 30.6      (d) A petition authorized by paragraph (a) or (c) is 
 30.7   effective if signed by a number of qualified voters in excess of 
 30.8   15 percent of the registered voters of the district on the day 
 30.9   the petition is filed with the board.  A referendum invoked by 
 30.10  petition must be held on the date specified in paragraph (a). 
 30.11     (e) The approval of 50 percent plus one of those voting on 
 30.12  the question is required to pass a referendum authorized by this 
 30.13  subdivision. 
 30.14     (f) At least 15 days before the day of the referendum, the 
 30.15  district must submit a copy of the notice required under 
 30.16  paragraph (b) to the commissioner and to the county auditor of 
 30.17  each county in which the district is located.  Within 15 days 
 30.18  after the results of the referendum have been certified by the 
 30.19  board, or in the case of a recount, the certification of the 
 30.20  results of the recount by the canvassing board, the district 
 30.21  must notify the commissioner of the results of the referendum. 
 30.22     (g) Except for a referendum held under subdivision 11, any 
 30.23  referendum under this section held on a day other than the first 
 30.24  Tuesday after the first Monday in November must be conducted by 
 30.25  mail in accordance with section 204B.46.  Notwithstanding 
 30.26  paragraph (b) to the contrary, in the case of a referendum 
 30.27  conducted by mail under this paragraph, the notice required by 
 30.28  paragraph (b) must be prepared and delivered by first class mail 
 30.29  at least 20 days before the referendum. 
 30.30     Sec. 46.  Minnesota Statutes 1998, section 126C.41, 
 30.31  subdivision 2, is amended to read: 
 30.32     Subd. 2.  [RETIRED EMPLOYEE HEALTH BENEFITS.] For taxes 
 30.33  payable in 1996, 1997, 1998, and 1999 only, A district may levy 
 30.34  an amount up to the amount the district is required by the 
 30.35  collective bargaining agreement in effect on March 30, 1992, to 
 30.36  pay for health insurance or unreimbursed medical expenses for 
 31.1   licensed and nonlicensed employees who have terminated services 
 31.2   in the employing district and withdrawn from active teaching 
 31.3   service or other active service, as applicable, before July 1, 
 31.4   1992.  The total amount of the levy each year may not exceed 
 31.5   $300,000.  
 31.6      Sec. 47.  Minnesota Statutes 1998, section 127A.44, 
 31.7   subdivision 2, is amended to read: 
 31.8      Subd. 2.  [ADJUSTMENT TO AIDS.] (a) The amount specified in 
 31.9   subdivision 1 shall be used to adjust the following state aids 
 31.10  and credits in the order listed: 
 31.11     (1) general education aid authorized in section 126C.13; 
 31.12     (2) secondary vocational aid authorized in section 
 31.13  124D.453; 
 31.14     (3) special education aid authorized in sections 125A.75 
 31.15  and 125A.76; 
 31.16     (4) school-to-work career and technical program aid for 
 31.17  children with a disability authorized in section 124D.454; 
 31.18     (5) aid for pupils of limited English proficiency 
 31.19  authorized in section 124D.65; 
 31.20     (6) transportation aid authorized in section 123B.92; 
 31.21     (7) (6) community education programs aid authorized in 
 31.22  section 124D.20; 
 31.23     (8) (7) adult education aid authorized in section 124D.52; 
 31.24     (9) (8) early childhood family education aid authorized in 
 31.25  section 124D.135; 
 31.26     (10) (9) capital expenditure aid authorized in section 
 31.27  123B.57; 
 31.28     (11) (10) school district cooperation aid authorized in 
 31.29  section 126C.22; 
 31.30     (12) assurance of mastery aid according to section 124D.67; 
 31.31     (13) (11) homestead and agricultural credit aid, disparity 
 31.32  credit and aid, and changes to credits for prior year 
 31.33  adjustments according to section 273.1398, subdivisions 2, 3, 4, 
 31.34  and 7; 
 31.35     (14) (12) attached machinery aid authorized in section 
 31.36  273.138, subdivision 3; 
 32.1      (15) alternative delivery aid authorized in section 
 32.2   125A.78; 
 32.3      (16) special education equalization aid authorized in 
 32.4   section 125A.77; 
 32.5      (17) (13) special education excess cost aid authorized in 
 32.6   section 125A.79; and 
 32.7      (18) (14) learning readiness aid authorized in section 
 32.8   124D.16; and 
 32.9      (19) cooperation-combination aid authorized in section 
 32.10  123A.39, subdivision 3. 
 32.11     (b) The commissioner shall schedule the timing of the 
 32.12  adjustments to state aids and credits specified in subdivision 
 32.13  1, as close to the end of the fiscal year as possible. 
 32.14     Sec. 48.  Minnesota Statutes 1998, section 127A.47, 
 32.15  subdivision 1, is amended to read: 
 32.16     Subdivision 1.  [AID TO SERVING DISTRICT OF RESIDENCE.] (a) 
 32.17  Unless otherwise specifically provided by law, general education 
 32.18  aid must be paid to the district of residence unless otherwise 
 32.19  specifically provided by law according to this subdivision.  
 32.20     (b) Except as provided in paragraph (c), general education 
 32.21  aid must be paid to the serving district.  
 32.22     (c) If the resident district pays tuition for a pupil under 
 32.23  section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 
 32.24  123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 
 32.25  125A.51, or 125A.65, general education aid, excluding basic 
 32.26  skills revenue under section 126C.10, subdivision 4, must be 
 32.27  paid to the resident district. 
 32.28     Sec. 49.  Minnesota Statutes 1998, section 127A.47, 
 32.29  subdivision 7, is amended to read: 
 32.30     Subd. 7.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
 32.31  education aid for districts must be adjusted for each pupil 
 32.32  attending a nonresident district under sections 123A.05 to 
 32.33  123A.08, 124D.03, 124D.06, 124D.07, 124D.08, and 124D.68.  The 
 32.34  adjustments must be made according to this subdivision. 
 32.35     (a) General education aid paid to a resident district must 
 32.36  be reduced by an amount equal to the general education revenue 
 33.1   exclusive of basic skills revenue referendum equalization aid 
 33.2   attributable to the pupil in the resident district. 
 33.3      (b) General education aid paid to a district serving a 
 33.4   pupil in programs listed in this subdivision must be increased 
 33.5   by an amount equal to the general education revenue exclusive of 
 33.6   basic skills revenue referendum equalization aid attributable to 
 33.7   the pupil in the nonresident district.  
 33.8      (c) If the amount of the reduction to be made from the 
 33.9   general education aid of the resident district is greater than 
 33.10  the amount of general education aid otherwise due the district, 
 33.11  the excess reduction must be made from other state aids due the 
 33.12  district. 
 33.13     (d) The district of residence must pay tuition to a 
 33.14  district or an area learning center, operated according to 
 33.15  paragraph (e), providing special instruction and services to a 
 33.16  pupil with a disability, as defined in section 125A.02, or a 
 33.17  pupil, as defined in section 125A.51, who is enrolled in a 
 33.18  program listed in this subdivision.  The tuition must be equal 
 33.19  to (1) the actual cost of providing special instruction and 
 33.20  services to the pupil, including a proportionate amount for debt 
 33.21  service and for capital expenditure facilities and equipment, 
 33.22  and debt service but not including any amount for 
 33.23  transportation, minus (2) the amount of general education 
 33.24  aid revenue and special education aid but not including any 
 33.25  amount for transportation, attributable to that pupil, that is 
 33.26  received by the district providing special instruction and 
 33.27  services. 
 33.28     (e) An area learning center operated by a service 
 33.29  cooperative, intermediate district, education district, or a 
 33.30  joint powers cooperative may elect through the action of the 
 33.31  constituent boards to charge tuition for pupils rather than to 
 33.32  calculate general education aid adjustments under paragraph (a), 
 33.33  (b), or (c).  The tuition must be equal to the greater of the 
 33.34  average general education revenue per pupil unit attributable to 
 33.35  the pupil, or the actual cost of providing the instruction, 
 33.36  excluding transportation costs, if the pupil meets the 
 34.1   requirements of section 125A.02 or 125A.51. 
 34.2      Sec. 50.  Minnesota Statutes 1998, section 127A.47, 
 34.3   subdivision 8, is amended to read: 
 34.4      Subd. 8.  [CHARTER SCHOOLS.] (a) The general education aid 
 34.5   for districts must be adjusted for each pupil attending a 
 34.6   charter school under section 124D.10.  The adjustments must be 
 34.7   made according to this subdivision. 
 34.8      (b) General education aid paid to a resident district must 
 34.9   be reduced by an amount equal to the general education revenue 
 34.10  exclusive of basic skills revenue. 
 34.11     (c) General education aid paid to a district in which a 
 34.12  charter school not providing transportation according to section 
 34.13  124D.10, subdivision 16, is located must be increased by an 
 34.14  amount equal to the product of:  (1) the sum of an amount equal 
 34.15  to the product of the formula allowance according to section 
 34.16  126C.10, subdivision 2, times .0485, plus the transportation 
 34.17  sparsity allowance for the district, plus the transportation 
 34.18  transition allowance for the district; times (2) the pupil units 
 34.19  attributable to the pupil.  
 34.20     (d) If the amount of the reduction to be made from the 
 34.21  general education aid of the resident district is greater than 
 34.22  the amount of general education aid otherwise due the district, 
 34.23  the excess reduction must be made from other state aids due the 
 34.24  district. 
 34.25     Sec. 51.  Minnesota Statutes 1998, section 127A.49, 
 34.26  subdivision 2, is amended to read: 
 34.27     Subd. 2.  [ABATEMENTS.] Whenever by virtue of chapter 278, 
 34.28  sections 270.07, 375.192, or otherwise, the net tax capacity of 
 34.29  any district for any taxable year is changed after the taxes for 
 34.30  that year have been spread by the county auditor and the local 
 34.31  tax rate as determined by the county auditor based upon the 
 34.32  original net tax capacity is applied upon the changed net tax 
 34.33  capacities, the county auditor shall, prior to February 1 of 
 34.34  each year, certify to the commissioner of children, families, 
 34.35  and learning the amount of any resulting net revenue loss that 
 34.36  accrued to the district during the preceding year.  Each year, 
 35.1   the commissioner shall pay an abatement adjustment to the 
 35.2   district in an amount calculated according to the provisions of 
 35.3   this subdivision.  This amount shall be deducted from the amount 
 35.4   of the levy authorized by section 126C.46.  The amount of the 
 35.5   abatement adjustment must be the product of:  
 35.6      (1) the net revenue loss as certified by the county 
 35.7   auditor, times 
 35.8      (2) the ratio of:  
 35.9      (i) the sum of the amounts of the district's certified levy 
 35.10  in the preceding year according to the following:  
 35.11     (A) section 126C.13 if the district received general 
 35.12  education aid according to that section for the second preceding 
 35.13  year; 
 35.14     (B) section 124.226, subdivisions 1 and 4, if the district 
 35.15  received transportation aid according to section 123B.92 for the 
 35.16  second preceding year; 
 35.17     (C) section 124.243, if the district received capital 
 35.18  expenditure facilities aid according to that section for the 
 35.19  second preceding year; 
 35.20     (D) section 124.244, if the district received capital 
 35.21  expenditure equipment aid according to that section for the 
 35.22  second preceding year; 
 35.23     (E) section 123B.57, if the district received health and 
 35.24  safety aid according to that section for the second preceding 
 35.25  year; 
 35.26     (F) (C) sections 124D.20, 124D.21, and 124D.56, if the 
 35.27  district received aid for community education programs according 
 35.28  to any of those sections for the second preceding year; 
 35.29     (G) (D) section 124D.135, subdivision 3, if the district 
 35.30  received early childhood family education aid according to 
 35.31  section 124D.135 for the second preceding year; and 
 35.32     (H) section 125A.77, subdivision 3, if the district 
 35.33  received special education levy equalization aid according to 
 35.34  that section for the second preceding year; 
 35.35     (I) (E) section 126C.17, subdivision 6, if the district 
 35.36  received referendum equalization aid according to that section 
 36.1   for the second preceding year; and 
 36.2      (J) section 124A.22, subdivision 4a, if the district 
 36.3   received training and experience aid according to that section 
 36.4   for the second preceding year; to 
 36.5      (ii) the total amount of the district's certified levy in 
 36.6   the preceding October December, plus or minus auditor's 
 36.7   adjustments. 
 36.8      Sec. 52.  Minnesota Statutes 1998, section 127A.49, 
 36.9   subdivision 3, is amended to read: 
 36.10     Subd. 3.  [EXCESS TAX INCREMENT.] (a) If a return of excess 
 36.11  tax increment is made to a district pursuant to section 469.176, 
 36.12  subdivision 2, or upon decertification of a tax increment 
 36.13  district, the school district's aid and levy limitations must be 
 36.14  adjusted for the fiscal year in which the excess tax increment 
 36.15  is paid under the provisions of this subdivision. 
 36.16     (b) An amount must be subtracted from the district's aid 
 36.17  for the current fiscal year equal to the product of: 
 36.18     (1) the amount of the payment of excess tax increment to 
 36.19  the district, times 
 36.20     (2) the ratio of: 
 36.21     (i) the sum of the amounts of the district's certified levy 
 36.22  for the fiscal year in which the excess tax increment is paid 
 36.23  according to the following: 
 36.24     (A) section 126C.13, if the district received general 
 36.25  education aid according to that section for the second preceding 
 36.26  year; 
 36.27     (B) section 124.226, subdivisions 1 and 4, if the district 
 36.28  received transportation aid according to section 123B.92 for the 
 36.29  second preceding year; 
 36.30     (C) section 124.243, if the district received capital 
 36.31  expenditure facilities aid according to that section for the 
 36.32  second preceding year; 
 36.33     (D) section 124.244, if the district received capital 
 36.34  expenditure equipment aid according to that section for the 
 36.35  second preceding year; 
 36.36     (E) section 123B.57, if the district received health and 
 37.1   safety aid according to that section for the second preceding 
 37.2   year; 
 37.3      (F) (C) sections 124D.20, 124D.21, and 124D.56, if the 
 37.4   district received aid for community education programs according 
 37.5   to any of those sections for the second preceding year; 
 37.6      (G) (D) section 124D.135, subdivision 3, if the district 
 37.7   received early childhood family education aid according to 
 37.8   section 124D.135 for the second preceding year; and 
 37.9      (H) section 125A.77, subdivision 3, if the district 
 37.10  received special education levy equalization aid according to 
 37.11  that section for the second preceding year; 
 37.12     (I) (E) section 126C.17, subdivision 6, if the district 
 37.13  received referendum equalization aid according to that section 
 37.14  for the second preceding year; and 
 37.15     (J) section 124A.22, subdivision 4a, if the district 
 37.16  received training and experience aid according to that section 
 37.17  for the second preceding year; to 
 37.18     (ii) the total amount of the district's certified levy for 
 37.19  the fiscal year, plus or minus auditor's adjustments. 
 37.20     (c) An amount must be subtracted from the school district's 
 37.21  levy limitation for the next levy certified equal to the 
 37.22  difference between: 
 37.23     (1) the amount of the distribution of excess increment; and 
 37.24     (2) the amount subtracted from aid pursuant to clause (a). 
 37.25     If the aid and levy reductions required by this subdivision 
 37.26  cannot be made to the aid for the fiscal year specified or to 
 37.27  the levy specified, the reductions must be made from aid for 
 37.28  subsequent fiscal years, and from subsequent levies.  The school 
 37.29  district must use the payment of excess tax increment to replace 
 37.30  the aid and levy revenue reduced under this subdivision. 
 37.31     (d) This subdivision applies only to the total amount of 
 37.32  excess increments received by a district for a calendar year 
 37.33  that exceeds $25,000. 
 37.34     Sec. 53.  Minnesota Statutes 1998, section 127A.51, is 
 37.35  amended to read: 
 37.36     127A.51 [STATEWIDE AVERAGE REVENUE.] 
 38.1      By October 1 of each year the commissioner must estimate 
 38.2   the statewide average adjusted general revenue per resident 
 38.3   adjusted marginal cost pupil unit and the disparity in adjusted 
 38.4   general revenue among pupils and districts by computing the 
 38.5   ratio of the ninety-fifth percentile to the fifth percentile of 
 38.6   adjusted general revenue.  The commissioner must provide that 
 38.7   information to all districts. 
 38.8      If the disparity in adjusted general revenue as measured by 
 38.9   the ratio of the ninety-fifth percentile to the fifth percentile 
 38.10  increases in any year, the commissioner shall recommend to the 
 38.11  legislature options for change in the general education formula 
 38.12  that will limit the disparity in adjusted general revenue to no 
 38.13  more than the disparity for the previous school year.  The 
 38.14  commissioner must submit the recommended options to the 
 38.15  education committees of the legislature by January 15. 
 38.16     For purposes of this section, adjusted general revenue 
 38.17  means the sum of basic revenue under section 126C.10, 
 38.18  subdivision 2; supplemental revenue under section 126C.10, 
 38.19  subdivisions 9 and 12; transition revenue under section 126C.10, 
 38.20  subdivision 20; and referendum revenue under section 126C.17. 
 38.21     Sec. 54.  Laws 1992, chapter 499, article 7, section 31, as 
 38.22  amended by Laws 1998, chapter 398, article 1, section 39, is 
 38.23  amended to read: 
 38.24     Sec. 31.  [REPEALER.] 
 38.25     Minnesota Statutes 1990, sections 124A.02, subdivision 24; 
 38.26  124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 
 38.27  124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 
 38.28  Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 
 38.29  23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 
 38.30  124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 
 38.31  124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 
 38.32  1; and 124A.29, subdivision 1, are repealed effective June 30, 
 38.33  2001 2002; Laws 1991, chapter 265, article 7, section 35, is 
 38.34  repealed. 
 38.35     Sec. 55.  Laws 1996, chapter 412, article 1, section 35, is 
 38.36  amended to read: 
 39.1      Sec. 35.  [REPEALER.] 
 39.2      Laws 1993, chapter 224, article 1, section 34, subdivision 
 39.3   1, is repealed.  Section 8 is repealed July 1, 1999. 
 39.4      Sec. 56.  Laws 1997, First Special Session chapter 4, 
 39.5   article 1, section 61, subdivision 1, is amended to read: 
 39.6      Subdivision 1.  [REVENUE CONVERSION.] For taxes payable in 
 39.7   1998 and 1999, the commissioner of children, families, and 
 39.8   learning shall adjust each school district's revenue authority 
 39.9   that is established as a rate times net tax capacity or adjusted 
 39.10  net tax capacity under Minnesota Statutes, chapters 124 and 124A 
 39.11  120B, 122A, 123A, 123B, 124D, 125A, 126C, and 127A, by 
 39.12  multiplying each revenue amount by the ratio of the statewide 
 39.13  tax capacity as calculated using the class rates in effect for 
 39.14  assessment year 1996 to the statewide tax capacity using the 
 39.15  class rates for that assessment year.  Tax rates for referendum 
 39.16  revenues according to Minnesota Statutes, section 126C.17, and 
 39.17  operating debt levies according to Minnesota Statutes, section 
 39.18  126C.42, established for an individual district under this 
 39.19  subdivision for taxes payable in 1999 shall remain in effect for 
 39.20  later years for which the revenue is authorized to be computed 
 39.21  as a rate times net tax capacity or adjusted net tax capacity. 
 39.22     Sec. 57.  Laws 1997, First Special Session chapter 4, 
 39.23  article 1, section 61, subdivision 2, is amended to read: 
 39.24     Subd. 2.  [TAX RATE ADJUSTMENT.] For taxes payable in 1998 
 39.25  and 1999, the commissioner shall adjust each tax rate 
 39.26  established under Minnesota Statutes, chapters 124 and 124A 
 39.27  120B, 122A, 123A, 123B, 124D, 125A, 126C, and 127A, by 
 39.28  multiplying the rate by the ratio of the statewide tax capacity 
 39.29  as calculated using the class rates in effect for assessment 
 39.30  year 1996 to the statewide tax capacity using the class rates 
 39.31  for that assessment year. 
 39.32     Sec. 58.  Laws 1997, First Special Session chapter 4, 
 39.33  article 1, section 61, subdivision 3, as amended by Laws 1998, 
 39.34  chapter 398, article 1, section 41, is amended to read: 
 39.35     Subd. 3.  [EQUALIZING FACTORS.] For taxes payable in 1998 
 39.36  and 1999, the commissioner shall adjust each equalizing factor 
 40.1   established using adjusted net tax capacity per actual pupil 
 40.2   unit under Minnesota Statutes, chapters 124 and 124A 120B, 122A, 
 40.3   123A, 123B, 124D, 125A, 126C, and 127A, by dividing the 
 40.4   equalizing factor by the ratio of the statewide tax capacity as 
 40.5   calculated using the class rates in effect for assessment year 
 40.6   1996 to the statewide tax capacity using the class rates for 
 40.7   that assessment year. 
 40.8      Sec. 59.  Laws 1997, First Special Session chapter 4, 
 40.9   article 1, section 61, subdivision 4, is amended to read: 
 40.10     Subd. 4.  [QUALIFYING RATE.] For taxes payable in 1998 and 
 40.11  1999, the commissioner shall adjust the qualifying rate under 
 40.12  Minnesota Statutes, section 124.95, subdivision 3, by 
 40.13  multiplying the qualifying rate times the ratio of the statewide 
 40.14  tax capacity, as calculated using the class rates in effect for 
 40.15  assessment year 1996, to the statewide tax capacity using the 
 40.16  class rates for that assessment year. 
 40.17     Sec. 60.  [FUND TRANSFERS.] 
 40.18     Subdivision 1.  [MONTICELLO.] Notwithstanding Minnesota 
 40.19  Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
 40.20  on June 30, 1999, independent school district No. 882, 
 40.21  Monticello, may permanently transfer up to $650,000 from its 
 40.22  debt redemption fund to its general fund. 
 40.23     Subd. 2.  [WHITE BEAR LAKE.] Notwithstanding Minnesota 
 40.24  Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
 40.25  on June 30, 1999, independent school district No. 624, White 
 40.26  Bear Lake, a district recently out of statutory operating debt, 
 40.27  may permanently transfer up to $650,000 from its debt redemption 
 40.28  fund to its general fund without making a levy reduction. 
 40.29     Subd. 3.  [OKLEE.] Notwithstanding Minnesota Statutes, 
 40.30  section 123B.53, on June 30, 1999, independent school district 
 40.31  No. 627, Oklee, may permanently transfer $44,300 from its debt 
 40.32  service fund to its general fund. 
 40.33     Subd. 4.  [DEER RIVER.] Notwithstanding Minnesota Statutes, 
 40.34  sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 
 40.35  30, 1999, independent school district No. 317, Deer River, may 
 40.36  permanently transfer up to $315,000 from the debt redemption 
 41.1   fund to its building construction fund without making a levy 
 41.2   reduction. 
 41.3      Subd. 5.  [FARIBAULT.] Notwithstanding Minnesota Statutes, 
 41.4   section 123B.79, or other law, on or before June 30, 2000, 
 41.5   independent school district No. 656, Faribault, may transfer an 
 41.6   amount equal to the sale of the school district's excess 
 41.7   property from its capital operating account to the undesignated 
 41.8   general fund, not to exceed $1,000,000.  This transfer shall be 
 41.9   used for the purposes of defraying the district's operating debt 
 41.10  and shall not be subject to salary negotiations. 
 41.11     Subd. 6.  [WESTONKA.] Notwithstanding Minnesota Statutes, 
 41.12  sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 
 41.13  30, 1999, independent school district No. 277, Westonka, may 
 41.14  permanently transfer up to $235,000 from its debt redemption 
 41.15  fund to its general fund without making a levy reduction to help 
 41.16  the school district out of statutory operating debt. 
 41.17     Sec. 61.  [LEASE LEVY FOR ADMINISTRATIVE SPACE; EDEN 
 41.18  PRAIRIE.] 
 41.19     Each year, independent school district No. 272, Eden 
 41.20  Prairie, may levy the amount necessary to rent or lease 
 41.21  administrative space so that space previously used for 
 41.22  administrative purposes may be used for instructional purposes. 
 41.23     Sec. 62.  [OPERATING DEBT LEVY FOR TRACY SCHOOL DISTRICT.] 
 41.24     Subdivision 1.  [OPERATING DEBT ACCOUNT.] On July 1, 1999, 
 41.25  independent school district No. 417, Tracy, shall establish a 
 41.26  reserve account in the general fund.  The balance in this fund 
 41.27  shall equal the unreserved undesignated fund balance in the 
 41.28  operating funds of the district as of June 30, 1999. 
 41.29     Subd. 2.  [LEVY.] For taxes payable in each of the years 
 41.30  2000 to 2004, the district may levy an amount up to 20 percent 
 41.31  of the balance in the account on July 1, 1999.  The balance in 
 41.32  the account shall be adjusted each year by the amount of the 
 41.33  proceeds of the levy.  The proceeds of the levy shall be used 
 41.34  only for cash flow requirements and shall not be used to 
 41.35  supplement district revenues or income for the purposes of 
 41.36  increasing the district's expenditures or budgets. 
 42.1      Subd. 3.  [NO LOCAL APPROVAL.] Pursuant to Minnesota 
 42.2   Statutes, section 645.023, subdivision 1, paragraph (a), this 
 42.3   section is effective without local approval. 
 42.4      Sec. 63.  [DIRECTION TO THE DEPARTMENT.] 
 42.5      For fiscal year 2000 only, the department of children, 
 42.6   families, and learning shall make appropriate weighting 
 42.7   adjustments to fiscal year 1999 pupil units to reflect the 
 42.8   impact of Minnesota Statutes, section 126C.05, subdivision 5, 
 42.9   paragraph (b), and subdivision 6, paragraph (b). 
 42.10     Sec. 64.  [CONTINGENT FORMULA INCREASE.] 
 42.11     (a) If on the basis of the November 1999 forecast there is 
 42.12  an available unrestricted general fund balance projected for 
 42.13  June 30, 2001, the commissioner of finance shall implement the 
 42.14  provisions in paragraphs (b) to (f) before giving effect to 
 42.15  Minnesota Statutes, section 16A.152, subdivision 2. 
 42.16     (b) The general education formula allowance, as defined in 
 42.17  Minnesota Statutes, section 126C.10, subdivision 2, shall be 
 42.18  increased in fiscal year 2001 and later years by an amount not 
 42.19  to exceed $50, rounded to the nearest dollar, if the planning 
 42.20  estimates in the November 1999 forecast for fiscal year 2002 and 
 42.21  fiscal year 2003 show that projected revenues, excluding prior 
 42.22  year balances and excluding settlement payments received 
 42.23  pursuant to section IIB of the settlement document filed May 18, 
 42.24  1998, in State v. Philip Morris, Inc., No. C1-94-8565 (Minnesota 
 42.25  District Court, Second Judicial District), will be greater than 
 42.26  projected expenditures for each year. 
 42.27     (c) The amount available to fund the increase in paragraph 
 42.28  (b) is the lesser of: 
 42.29     (1) the available unrestricted general fund balance 
 42.30  projected for June 30, 2001; or 
 42.31     (2) the lowest amount to which projected revenues, 
 42.32  excluding prior year balances and excluding settlement payments 
 42.33  received pursuant to section IIB of the settlement document 
 42.34  filed May 18, 1998, in State v. Philip Morris, Inc., No. 
 42.35  C1-94-8565 (Minnesota District Court, Second Judicial District), 
 42.36  exceed projected expenditures for any year. 
 43.1      (d) The amount necessary to implement this section is 
 43.2   appropriated from the general fund. 
 43.3      (e) The amount available to increase the formula allowance 
 43.4   shall be certified to the commissioner of children, families, 
 43.5   and learning the day after release of the November 1999 forecast.
 43.6      (f) The commissioner of the department of children, 
 43.7   families, and learning shall notify school districts of the 
 43.8   resulting increase in the formula within two weeks of the 
 43.9   certification. 
 43.10     Sec. 65.  [SUPPLEMENTAL REVENUE.] 
 43.11     Supplemental revenue for fiscal years 2000 and later under 
 43.12  Minnesota Statutes, section 126C.10, subdivision 9, is increased 
 43.13  by the following amounts: 
 43.14     (1) for independent school district No. 11, Anoka, 
 43.15  $2,000,000; and 
 43.16     (2) for independent school district No. 279, Osseo, 
 43.17  $500,000. 
 43.18     Supplemental revenue increased under this section is not 
 43.19  subject to reduction under Minnesota Statutes, section 126C.10, 
 43.20  subdivision 12. 
 43.21     Sec. 66.  [EQUITY REVENUE ADJUSTMENT.] 
 43.22     For fiscal years 2000 and 2001, a school district that does 
 43.23  not have an operating referendum is eligible for additional 
 43.24  equity revenue under section 30 equal to $12 times the 
 43.25  district's adjusted marginal cost pupil units for that year. 
 43.26     Sec. 67.  [CLASS SIZE, ALL-DAY KINDERGARTEN, AND SPECIAL 
 43.27  EDUCATION STUDENT-TO-INSTRUCTOR RATIO RESERVE.] 
 43.28     A district is required to reserve $3 in fiscal year 2000 
 43.29  and $11 in fiscal year 2001 and later per adjusted marginal cost 
 43.30  pupil unit for class size reduction, all-day kindergarten, or 
 43.31  for reducing special education student-to-instructor ratios.  
 43.32  The school board of each district must pass a resolution stating 
 43.33  which one of these three programs will be funded with this 
 43.34  reserve.  The reserve amount under this section must be 
 43.35  allocated to the education site as defined in Minnesota 
 43.36  Statutes, section 123B.04, subdivision 1. 
 44.1      Sec. 68.  [APPROPRIATIONS.] 
 44.2      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 44.3   LEARNING.] The sums indicated in this section are appropriated 
 44.4   from the general fund to the department of children, families, 
 44.5   and learning for the fiscal years designated.  
 44.6      Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
 44.7   general and supplemental education aid:  
 44.8    $3,062,321,000     .....     2000
 44.9    $3,160,518,000     .....     2001
 44.10     The 2000 appropriation includes $272,186,000 for 1999 and 
 44.11  $2,790,135,000 for 2000.  
 44.12     The 2001 appropriation includes $310,015,000 for 2000 and 
 44.13  $2,850,503,000 for 2001.  
 44.14     Subd. 3.  [TRANSPORTATION SAFETY.] For student 
 44.15  transportation safety aid according to Minnesota Statutes, 
 44.16  section 123B.92, subdivision 4: 
 44.17       $144,000       .....     2000 
 44.18     The 2000 appropriation includes $144,000 for 1999.  
 44.19     Subd. 4.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
 44.20  transportation of pupils attending post-secondary institutions 
 44.21  according to Minnesota Statutes, section 124D.09, or for 
 44.22  transportation of pupils attending nonresident districts 
 44.23  according to Minnesota Statutes, section 124D.03: 
 44.24       $102,000       .....     2000
 44.25       $102,000       .....     2001
 44.26     Any balance in the first year does not cancel but is 
 44.27  available in the second year. 
 44.28     Subd. 5.  [DISTRICT COOPERATION REVENUE.] For district 
 44.29  cooperation revenue aid: 
 44.30       $5,940,000     .....     2000
 44.31       $  563,000     .....     2001
 44.32     The 2000 appropriation includes $869,000 for 1999 and 
 44.33  $5,071,000 for 2000. 
 44.34     The 2001 appropriation includes $563,000 for 2000 and $0 
 44.35  for 2001. 
 44.36     Sec. 69.  [REPEALER.] 
 45.1      (a) Minnesota Statutes 1998, sections 123B.89; and 123B.92, 
 45.2   subdivisions 2, 4, 6, 7, 8, and 10, are repealed. 
 45.3      (b) Minnesota Statutes 1998, section 120B.05, is repealed 
 45.4   effective for revenue for fiscal year 2000. 
 45.5      (c) Minnesota Statutes 1998, section 124D.65, subdivisions 
 45.6   1, 2, and 3, are repealed effective for revenue for fiscal year 
 45.7   2001. 
 45.8      (d) Minnesota Statutes 1998, sections 124D.67; 126C.05, 
 45.9   subdivision 4; and 126C.06, are repealed effective the day 
 45.10  following final enactment. 
 45.11     This appropriation is available until June 30, 2001. 
 45.12     Sec. 70.  [EFFECTIVE DATES.] 
 45.13     Sections 13, 14, 26, 30, 37, and 39 are effective for 
 45.14  revenue for fiscal year 2000 and later.  Sections 46, 47, and 55 
 45.15  to 60 are effective the day following final enactment.  Section 
 45.16  61 is effective for taxes payable in 2000 and later. 
 45.17                             ARTICLE 2 
 45.18                          SPECIAL PROGRAMS 
 45.19     Section 1.  Minnesota Statutes 1998, section 121A.23, is 
 45.20  amended to read: 
 45.21     121A.23 [HEALTH-RELATED PROGRAMS.] 
 45.22     Subdivision 1.  [AIDS SEXUALLY TRANSMITTED DISEASES 
 45.23  PROGRAM.] The commissioner of children, families, and learning, 
 45.24  in consultation with the commissioner of health, shall assist 
 45.25  districts in developing and implementing a program to prevent 
 45.26  and reduce the risk of acquired immune deficiency syndrome 
 45.27  sexually transmitted infections and diseases, including but not 
 45.28  exclusive to human immune deficiency virus and human papilloma 
 45.29  virus.  Each district must have a program that includes at least:
 45.30     (1) planning materials, guidelines, and other technically 
 45.31  accurate and updated information; 
 45.32     (2) a comprehensive, technically accurate, and updated 
 45.33  curriculum that includes helping students to abstain from sexual 
 45.34  activity until marriage; 
 45.35     (3) cooperation and coordination among districts and SCs; 
 45.36     (4) a targeting of adolescents, especially those who may be 
 46.1   at high risk of contracting AIDS sexually transmitted infections 
 46.2   and diseases, for prevention efforts; 
 46.3      (5) involvement of parents and other community members; 
 46.4      (6) in-service training for appropriate district staff and 
 46.5   school board members; 
 46.6      (7) collaboration with state agencies and organizations 
 46.7   having an AIDS a sexually transmitted infection and disease 
 46.8   prevention or AIDS sexually transmitted infection and disease 
 46.9   risk reduction program; 
 46.10     (8) collaboration with local community health services, 
 46.11  agencies and organizations having an AIDS a sexually transmitted 
 46.12  infection and disease prevention or AIDS sexually transmitted 
 46.13  infection and disease risk reduction program; and 
 46.14     (9) participation by state and local student organizations. 
 46.15     The department may provide assistance at a neutral site to 
 46.16  a nonpublic school participating in a district's program.  
 46.17  District programs must not conflict with the health and wellness 
 46.18  curriculum developed under Laws 1987, chapter 398, article 5, 
 46.19  section 2, subdivision 7. 
 46.20     If a district fails to develop and implement a program to 
 46.21  prevent and reduce the risk of AIDS sexually transmitted 
 46.22  infection and disease, the department must assist the service 
 46.23  cooperative in the region serving that district to develop or 
 46.24  implement the program.  
 46.25     Subd. 2.  [FUNDING SOURCES.] Districts may accept funds for 
 46.26  AIDS sexually transmitted infection and disease prevention 
 46.27  programs developed and implemented under this section from 
 46.28  public and private sources including public health funds and 
 46.29  foundations, department professional development funds, federal 
 46.30  block grants or other federal or state grants. 
 46.31     Sec. 2.  Minnesota Statutes 1998, section 121A.43, as 
 46.32  amended by Laws 1999, chapter 123, section 2, is amended to read:
 46.33     121A.43 [EXCLUSION AND EXPULSION OF PUPILS WITH A 
 46.34  DISABILITY.] 
 46.35     When a pupil who has an individual education plan is 
 46.36  excluded or expelled under sections 121A.40 to 121A.56 for 
 47.1   misbehavior that is not a manifestation of the pupil's 
 47.2   disability, the district shall continue to provide special 
 47.3   education and related services after a period of suspension, if 
 47.4   suspension is imposed.  The district shall initiate a review of 
 47.5   the student's pupil's individual education plan and conduct a 
 47.6   review of the relationship between the student's pupil's 
 47.7   disability and the behavior subject to disciplinary action and 
 47.8   determine the appropriateness of the student's pupil's education 
 47.9   plan before commencing an expulsion or exclusion. 
 47.10     Sec. 3.  Minnesota Statutes 1998, section 122A.28, is 
 47.11  amended to read: 
 47.12     122A.28 [TEACHERS OF DEAF AND HARD-OF-HEARING STUDENTS; 
 47.13  LICENSURE REQUIREMENTS.] 
 47.14     Subdivision 1.  [K-12 LICENSE TO TEACH DEAF AND 
 47.15  HARD-OF-HEARING STUDENTS.] The board of teaching must review and 
 47.16  determine appropriate licensure requirements for a candidate for 
 47.17  a license or an applicant for a continuing license to teach deaf 
 47.18  and hard-of-hearing students in prekindergarten through grade 12.
 47.19  In addition to other requirements, a candidate must demonstrate 
 47.20  the minimum level of proficiency in American sign language as 
 47.21  determined by the board.  
 47.22     Subd. 2.  [LICENSURE FOR TEACHING ORAL/AURAL DEAF EDUCATION 
 47.23  PROGRAMS.] (a) The board of teaching shall adopt a separate 
 47.24  licensure rule for a candidate for a license or an applicant for 
 47.25  a continuing license to teach in oral/aural deaf education 
 47.26  programs or to provide services, including itinerant oral/aural 
 47.27  deaf education services, to deaf and hard-of-hearing students in 
 47.28  prekindergarten through grade 12. 
 47.29     (b) The board shall design rule requirements for teaching 
 47.30  oral/aural deaf education in collaboration with representatives 
 47.31  of parents and educators of deaf and hard-of-hearing students, 
 47.32  post-secondary programs preparing teachers of deaf and 
 47.33  hard-of-hearing students, and the department of children, 
 47.34  families, and learning. 
 47.35     (c) Rule requirements for teaching oral/aural deaf 
 47.36  education shall reflect best practice research in oral/aural 
 48.1   deaf education.  Advanced competencies in teaching deaf and 
 48.2   hard-of-hearing students through oral/aural modes shall be 
 48.3   included. 
 48.4      (d) Licensure requirements for teachers of oral/aural deaf 
 48.5   education must include minimum competency in American sign 
 48.6   language, but are not subject to the guidelines established in 
 48.7   Laws 1993, chapter 224, article 3, section 32, as amended by 
 48.8   Laws 1998, chapter 398, article 2, section 47.  The signed 
 48.9   communication proficiency interview shall not be required for 
 48.10  teachers licensed to teach deaf and hard-of-hearing students 
 48.11  through oral/aural deaf education methods. 
 48.12     (e) Requirements for teachers or oral/aural deaf education 
 48.13  shall include appropriate continuing education requirements for 
 48.14  renewing this licensure. 
 48.15     Sec. 4.  Minnesota Statutes 1998, section 123A.05, 
 48.16  subdivision 2, is amended to read: 
 48.17     Subd. 2.  [RESERVE REVENUE.] Each district that is a member 
 48.18  of an area learning center must reserve revenue in an amount 
 48.19  equal to at least 90 percent of the district average general 
 48.20  education revenue less compensatory per pupil unit minus an 
 48.21  amount equal to the product of the formula allowance according 
 48.22  to section 126C.10, subdivision 2, times .0485, calculated 
 48.23  without basic skills revenue unit, transportation sparsity 
 48.24  revenue, and the transportation portion of the transition 
 48.25  revenue adjustment, times the number of pupil units attending an 
 48.26  area learning center program under this section.  The amount of 
 48.27  reserved revenue under this subdivision may only be spent on 
 48.28  program costs associated with the area learning center.  
 48.29  Compensatory revenue must be allocated according to section 
 48.30  126C.15, subdivision 2.  
 48.31     Sec. 5.  Minnesota Statutes 1998, section 123A.05, 
 48.32  subdivision 3, is amended to read: 
 48.33     Subd. 3.  [ACCESS TO SERVICES.] A center shall have access 
 48.34  to the district's regular education programs, special education 
 48.35  programs, technology facilities, and staff.  It may contract 
 48.36  with individuals or post-secondary institutions.  It shall seek 
 49.1   the involvement of community education programs, post-secondary 
 49.2   institutions, interagency collaboratives, culturally based 
 49.3   organizations, mutual assistance associations, and other 
 49.4   community resources, businesses, and other federal, state, and 
 49.5   local public agencies. 
 49.6      Sec. 6.  Minnesota Statutes 1998, section 123A.06, 
 49.7   subdivision 1, is amended to read: 
 49.8      Subdivision 1.  [PROGRAM FOCUS.] (a) The programs and 
 49.9   services of a center must focus on academic and learning skills, 
 49.10  applied learning opportunities, trade and vocational skills, 
 49.11  work-based learning opportunities, work experience, youth 
 49.12  service to the community, and transition services, and English 
 49.13  language and literacy programs for children whose primary 
 49.14  language is a language other than English.  Applied learning, 
 49.15  work-based learning, and service learning may best be developed 
 49.16  in collaboration with a local education and transitions 
 49.17  partnership, culturally based organizations, mutual assistance 
 49.18  associations, or other community resources.  In addition to 
 49.19  offering programs, the center shall coordinate the use of other 
 49.20  available educational services, special education services, 
 49.21  social services, health services, and post-secondary 
 49.22  institutions in the community and services area.  
 49.23     (b) Consistent with the requirements of sections 121A.40 to 
 49.24  121A.56, a school district may provide an alternative education 
 49.25  program for a student who is within the compulsory attendance 
 49.26  age under section 120A.20, and who is involved in severe or 
 49.27  repeated disciplinary action. 
 49.28     Sec. 7.  Minnesota Statutes 1998, section 123A.06, 
 49.29  subdivision 2, is amended to read: 
 49.30     Subd. 2.  [PEOPLE TO BE SERVED.] A center shall provide 
 49.31  programs for secondary pupils and adults.  A center may also 
 49.32  provide programs and services for elementary and secondary 
 49.33  pupils who are not attending the center to assist them in being 
 49.34  successful in school.  A center shall use research-based best 
 49.35  practices for serving limited English proficient students and 
 49.36  their parents.  An individual education plan team may identify a 
 50.1   center as an appropriate placement to the extent a center can 
 50.2   provide the student with the appropriate special education 
 50.3   services described in the student's plan.  Pupils eligible to be 
 50.4   served are those age five to adults 22 and older who qualify 
 50.5   under the graduation incentives program in section 124D.68, 
 50.6   subdivision 2, or those pupils who are eligible to receive 
 50.7   special education services under sections 125A.03 to 125A.24, 
 50.8   and 125A.65. 
 50.9      Sec. 8.  Minnesota Statutes 1998, section 123B.75, is 
 50.10  amended by adding a subdivision to read: 
 50.11     Subd. 6a.  [INTEGRATION AID.] Integration aid received 
 50.12  under section 127A.45, subdivision 12a, must be recognized in 
 50.13  the same fiscal year as the integration levy. 
 50.14     Sec. 9.  Minnesota Statutes 1998, section 124D.081, 
 50.15  subdivision 3, is amended to read: 
 50.16     Subd. 3.  [QUALIFYING SCHOOL SITE.] (a) The commissioner 
 50.17  shall rank all school sites with kindergarten programs that do 
 50.18  not exclusively serve students under sections 125A.03 to 
 50.19  125A.24, and 125A.65.  The ranking must be from highest to 
 50.20  lowest based on the site's free and reduced lunch count as a 
 50.21  percent of the fall enrollment using the preceding October 1 
 50.22  enrollment data.  Once a school site is calculated to be 
 50.23  eligible, it remains eligible for the duration of the pilot 
 50.24  program, unless the site's ranking falls below the state average 
 50.25  for elementary schools.  For each school site, the percentage 
 50.26  used to calculate the ranking must be the greater of (1) the 
 50.27  percent of the fall kindergarten enrollment receiving free and 
 50.28  reduced lunch, or (2) the percent of the total fall enrollment 
 50.29  receiving free and reduced lunch.  The list of ranked sites must 
 50.30  be separated into the following geographic areas:  Minneapolis 
 50.31  district, St. Paul district, suburban Twin Cities districts in 
 50.32  the seven-county metropolitan area, and school districts in 
 50.33  greater Minnesota. 
 50.34     (b) The commissioner shall establish a process and 
 50.35  timelines to qualify school sites for the next school year.  
 50.36  School sites must be qualified in each geographic area from the 
 51.1   list of ranked sites until the estimated revenue available for 
 51.2   this program has been allocated.  The total estimated revenue 
 51.3   must be distributed to qualified school sites in each geographic 
 51.4   area as follows:  25 percent for Minneapolis sites, 25 percent 
 51.5   for St. Paul sites, 25 percent for suburban Twin Cities sites, 
 51.6   and 25 percent for greater Minnesota. 
 51.7      Sec. 10.  Minnesota Statutes 1998, section 124D.454, 
 51.8   subdivision 5, is amended to read: 
 51.9      Subd. 5.  [STATE TOTAL SCHOOL-TO-WORK PROGRAM-DISABLED 
 51.10  REVENUE.] The state total school-to-work program-disabled 
 51.11  revenue for fiscal year 1998 2000 equals $8,924,000 $8,982,000.  
 51.12  The state total school-to-work program-disabled revenue for 
 51.13  fiscal year 1999 2001 equals $8,976,000 $8,966,000.  The state 
 51.14  total school-to-work program-disabled revenue for later fiscal 
 51.15  years equals:  
 51.16     (1) the state total school-to-work program-disabled revenue 
 51.17  for the preceding fiscal year; times 
 51.18     (2) the program growth factor; times 
 51.19     (3) the ratio of the state total average daily membership 
 51.20  for the current fiscal year to the state total average daily 
 51.21  membership for the preceding fiscal year. 
 51.22     Sec. 11.  Minnesota Statutes 1998, section 124D.65, 
 51.23  subdivision 4, is amended to read: 
 51.24     Subd. 4.  [STATE TOTAL LEP REVENUE.] (a) The state total 
 51.25  limited English proficiency programs revenue for fiscal 
 51.26  year 1998 2000 equals $14,629,000 $27,454,000.  The state total 
 51.27  limited English proficiency programs revenue for fiscal 
 51.28  year 1999 2001 equals $16,092,000 $31,752,000.  
 51.29     (b) The state total limited English proficiency programs 
 51.30  revenue for later fiscal years equals: 
 51.31     (1) the state total limited English proficiency programs 
 51.32  revenue for the preceding fiscal year; times 
 51.33     (2) the program growth factor under section 125A.76 
 51.34  subdivision 1; times 
 51.35     (3) the ratio of the state total number of pupils with 
 51.36  limited English proficiency for the current fiscal year to the 
 52.1   state total number of pupils with limited English proficiency 
 52.2   for the preceding fiscal year. 
 52.3      Sec. 12.  Minnesota Statutes 1998, section 124D.87, is 
 52.4   amended to read: 
 52.5      124D.87 [INTERDISTRICT DESEGREGATION OR INTEGRATION 
 52.6   TRANSPORTATION GRANTS AID.] 
 52.7      (a) A district that provides transportation of pupils to 
 52.8   and from an interdistrict program for desegregation or 
 52.9   integration purposes may apply to the commissioner is eligible 
 52.10  for a grant state aid to cover the additional costs of 
 52.11  transportation.  
 52.12     (b) A district in the metropolitan area may apply to the 
 52.13  commissioner for a grant state aid to cover the costs of 
 52.14  transporting pupils who are enrolled under section 124D.03 if 
 52.15  the enrollment of the student in the nonresident district 
 52.16  contributes to desegregation or integration purposes.  The 
 52.17  commissioner shall develop the form and manner of 
 52.18  applications for state aid, the criteria to be used to determine 
 52.19  when transportation is for desegregation or integration 
 52.20  purposes, and the accounting procedure to be used to determine 
 52.21  excess costs.  In determining the grant amount aid amounts, the 
 52.22  commissioner shall consider other revenue received by the 
 52.23  district for transportation for desegregation or integration 
 52.24  purposes. 
 52.25     (c) Grants may be awarded Aid must be paid under paragraph 
 52.26  (b) only if grants awarded aid amounts under paragraph (a) have 
 52.27  been fully funded. 
 52.28     Sec. 13.  Minnesota Statutes 1998, section 125A.09, 
 52.29  subdivision 4, is amended to read: 
 52.30     Subd. 4.  [DISPUTE RESOLUTION.] Parents and guardians must 
 52.31  have an opportunity to meet with appropriate district staff in 
 52.32  at least one conciliation conference, mediation, or other method 
 52.33  of alternative dispute resolution that the parties agree to, if 
 52.34  they object to any proposal of which they are notified under 
 52.35  subdivision 1.  The state intends to encourage parties to 
 52.36  resolve disputes through mediation or other form of alternative 
 53.1   dispute resolution.  A school district and a parent or guardian 
 53.2   must participate in mediation using mediation services 
 53.3   acceptable to both parties, unless a party objects to the 
 53.4   mediation.  Mediation shall remain available to the parties 
 53.5   until a party objects to the mediation, or the mediator 
 53.6   determines that further efforts to mediate a dispute are not 
 53.7   warranted.  All mediation is subject to the confidentiality 
 53.8   requirements under rule 114.08 of the general rules of practice 
 53.9   for the district courts.  Alternative dispute resolution must 
 53.10  not be used to deny or delay a parent or guardian's right to a 
 53.11  due process hearing.  If the parent or guardian refuses efforts 
 53.12  by the district to conciliate the dispute with the district, the 
 53.13  requirement of an opportunity for conciliation or other 
 53.14  alternative dispute resolution must be deemed to be satisfied.  
 53.15  Notwithstanding other law, in any proceeding following a 
 53.16  conciliation conference, the district must not offer a 
 53.17  conciliation conference memorandum into evidence, except for any 
 53.18  portions that describe the district's final proposed offer of 
 53.19  service.  Otherwise, with respect to forms of dispute 
 53.20  resolution, mediation, or conciliation, Minnesota Rule of 
 53.21  Evidence 408 applies.  The department may reimburse the 
 53.22  districts or directly pay the costs of lay advocates, not to 
 53.23  exceed $150 per dispute, used in conjunction with alternative 
 53.24  dispute resolution. 
 53.25     Sec. 14.  Minnesota Statutes 1998, section 125A.15, is 
 53.26  amended to read: 
 53.27     125A.15 [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 
 53.28     The responsibility for special instruction and services for 
 53.29  a child with a disability temporarily placed in another district 
 53.30  for care and treatment shall be determined in the following 
 53.31  manner: 
 53.32     (a) The district of residence of a child shall be the 
 53.33  district in which the child's parent resides, if living, or the 
 53.34  child's guardian, or the district designated by the commissioner 
 53.35  if neither parent nor guardian is living within the state. 
 53.36     (b) When a child is temporarily placed for care and 
 54.1   treatment in a day program located in another district and the 
 54.2   child continues to live within the district of residence during 
 54.3   the care and treatment, the district of residence is responsible 
 54.4   for providing transportation to and from the care and treatment 
 54.5   facility and an appropriate educational program for the 
 54.6   child.  Transportation shall only be provided by the district 
 54.7   during regular operating hours of the district.  The district 
 54.8   may provide the educational program at a school within the 
 54.9   district of residence, at the child's residence, or in the 
 54.10  district in which the day treatment center is located by paying 
 54.11  tuition to that district. 
 54.12     (c) When a child is temporarily placed in a residential 
 54.13  program for care and treatment, the nonresident district in 
 54.14  which the child is placed is responsible for providing an 
 54.15  appropriate educational program for the child and necessary 
 54.16  transportation while the child is attending the educational 
 54.17  program; and must bill the district of the child's residence for 
 54.18  the actual cost of providing the program, as outlined in section 
 54.19  125A.11.  However, the board, lodging, and treatment costs 
 54.20  incurred in behalf of a child with a disability placed outside 
 54.21  of the school district of residence by the commissioner of human 
 54.22  services or the commissioner of corrections or their agents, for 
 54.23  reasons other than providing for the child's special educational 
 54.24  needs must not become the responsibility of either the district 
 54.25  providing the instruction or the district of the child's 
 54.26  residence.  For the purposes of this section, the state 
 54.27  correctional facilities operated on a fee-for-service basis are 
 54.28  considered to be residential programs for care and treatment. 
 54.29     (d) The district of residence shall pay tuition and other 
 54.30  program costs, not including transportation costs, to the 
 54.31  district providing the instruction and services.  The district 
 54.32  of residence may claim general education aid for the child as 
 54.33  provided by law.  Transportation costs must be paid by the 
 54.34  district responsible for providing the transportation and the 
 54.35  state must pay transportation aid to that district. 
 54.36     Sec. 15.  [125A.155] [SPECIAL EDUCATION RECIPROCITY; 
 55.1   COMMISSIONER DUTIES.] 
 55.2      The commissioner of children, families, and learning must 
 55.3   develop a special education reciprocity agreement form.  The 
 55.4   reciprocity form must specify the procedures used to calculate 
 55.5   special education tuition charges for both Minnesota students 
 55.6   that are served in other states and for out-of-state students 
 55.7   who are served in Minnesota.  The commissioner shall attempt to 
 55.8   enter into reciprocity agreements with any state that sends 
 55.9   students to Minnesota and any state that provides services to 
 55.10  Minnesota students. 
 55.11     Sec. 16.  Minnesota Statutes 1998, section 125A.50, 
 55.12  subdivision 2, is amended to read: 
 55.13     Subd. 2.  [APPLICATION CONTENTS.] The application must set 
 55.14  forth: 
 55.15     (1) instructional services available to eligible pupils 
 55.16  under section 124D.67 124D.66, subdivision 3 2, and pupils with 
 55.17  a disability under section 125A.02; 
 55.18     (2) criteria to select pupils for the program and the 
 55.19  assessment procedures to determine eligibility; 
 55.20     (3) involvement in the program of parents of pupils in the 
 55.21  program, parent advocates, and community special education 
 55.22  advocates; 
 55.23     (4) accounting procedures to document that federal special 
 55.24  education money is used to supplement or increase the level of 
 55.25  special education instruction and related services provided with 
 55.26  state and local revenue, but in no case to supplant the state 
 55.27  and local revenue, and that districts are expending at least the 
 55.28  amount for special education instruction and related services 
 55.29  required by federal law; 
 55.30     (5) the role of regular and special education teachers in 
 55.31  planning and implementing the program; and 
 55.32     (6) other information requested by the commissioner.  
 55.33     Sec. 17.  Minnesota Statutes 1998, section 125A.50, 
 55.34  subdivision 5, is amended to read: 
 55.35     Subd. 5.  [ANNUAL REPORT.] Each year the district must 
 55.36  submit to the commissioner a report containing the information 
 56.1   described in subdivision 3 and section 124D.67, subdivision 7.  
 56.2      Sec. 18.  Minnesota Statutes 1998, section 125A.51, is 
 56.3   amended to read: 
 56.4      125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
 56.5   EDUCATION AND TRANSPORTATION.] 
 56.6      The responsibility for providing instruction and 
 56.7   transportation for a pupil without a disability who has a 
 56.8   short-term or temporary physical or emotional illness or 
 56.9   disability, as determined by the standards of the state board, 
 56.10  and who is temporarily placed for care and treatment for that 
 56.11  illness or disability, must be determined as provided in this 
 56.12  section.  
 56.13     (a) The school district of residence of the pupil is the 
 56.14  district in which the pupil's parent or guardian resides or the 
 56.15  district designated by the commissioner if neither parent nor 
 56.16  guardian is living within the state and tuition has been denied. 
 56.17     (b) When parental rights have been terminated by court 
 56.18  order, the legal residence of a child placed in a residential or 
 56.19  foster facility for care and treatment is the district in which 
 56.20  the child resides when parental rights have been terminated. 
 56.21     (b) (c) Before the placement of a pupil for care and 
 56.22  treatment, the district of residence must be notified and 
 56.23  provided an opportunity to participate in the placement 
 56.24  decision.  When an immediate emergency placement is necessary 
 56.25  and time does not permit resident district participation in the 
 56.26  placement decision, the district in which the pupil is 
 56.27  temporarily placed, if different from the district of residence, 
 56.28  must notify the district of residence of the emergency placement 
 56.29  within 15 days of the placement.  
 56.30     (c) (d) When a pupil without a disability is temporarily 
 56.31  placed for care and treatment in a day program and the pupil 
 56.32  continues to live within the district of residence during the 
 56.33  care and treatment, the district of residence must provide 
 56.34  instruction and necessary transportation to and from the 
 56.35  treatment facility for the pupil.  Transportation shall only be 
 56.36  provided by the district during regular operating hours of the 
 57.1   district.  The district may provide the instruction at a school 
 57.2   within the district of residence, at the pupil's residence, or 
 57.3   in the case of a placement outside of the resident district, in 
 57.4   the district in which the day treatment program is located by 
 57.5   paying tuition to that district.  The district of placement may 
 57.6   contract with a facility to provide instruction by teachers 
 57.7   licensed by the state board of teaching.  
 57.8      (d) (e) When a pupil without a disability is temporarily 
 57.9   placed in a residential program for care and treatment, the 
 57.10  district in which the pupil is placed must provide instruction 
 57.11  for the pupil and necessary transportation while the pupil is 
 57.12  receiving instruction, and in the case of a placement outside of 
 57.13  the district of residence, the nonresident district must bill 
 57.14  the district of residence for the actual cost of providing the 
 57.15  instruction for the regular school year and for summer school, 
 57.16  excluding transportation costs.  When a pupil without a 
 57.17  disability is temporarily placed in a residential program 
 57.18  outside the district of residence, the administrator of the 
 57.19  court placing the pupil must send timely written notice of the 
 57.20  placement to the district of residence.  The district of 
 57.21  placement may contract with a residential facility to provide 
 57.22  instruction by teachers licensed by the state board of teaching. 
 57.23  For purposes of this section, the state correctional facilities 
 57.24  operated on a fee-for-service basis are considered to be 
 57.25  residential programs for care and treatment. 
 57.26     (e) (f) The district of residence must include the pupil in 
 57.27  its residence count of pupil units and pay tuition as provided 
 57.28  in section 123A.488 to the district providing the instruction.  
 57.29  Transportation costs must be paid by the district providing the 
 57.30  transportation and the state must pay transportation aid to that 
 57.31  district.  For purposes of computing state transportation aid, 
 57.32  pupils governed by this subdivision must be included in the 
 57.33  disabled transportation category.  
 57.34     Sec. 19.  [125A.515] [PLACEMENT OF CHILDREN WITHOUT 
 57.35  DISABILITIES; APPROVAL OF EDUCATION PROGRAM.] 
 57.36     The commissioner shall approve education programs in care 
 58.1   and treatment facilities for placement of children without 
 58.2   disabilities, including detention centers, before being licensed 
 58.3   by the department of human services or the department of 
 58.4   corrections. 
 58.5      Sec. 20.  Minnesota Statutes 1998, section 125A.62, is 
 58.6   amended to read: 
 58.7      125A.62 [DUTIES OF STATE THE BOARD OF EDUCATION THE 
 58.8   MINNESOTA STATE ACADEMIES.] 
 58.9      Subdivision 1.  [GOVERNANCE.] The board of the Faribault 
 58.10  academy Minnesota state academies shall govern the state 
 58.11  academies for the deaf and the state academy for the blind.  The 
 58.12  board must promote academic standards based on high expectation 
 58.13  and an assessment system to measure academic performance toward 
 58.14  the achievement of those standards.  The board must focus on the 
 58.15  academies' needs as a whole and not prefer one school over the 
 58.16  other.  The board of the Faribault Minnesota state academies 
 58.17  shall consist of seven nine persons.  The members of the board 
 58.18  shall be appointed by the governor with the advice and consent 
 58.19  of the senate.  Three members One member must be from the 
 58.20  seven-county metropolitan area, three members one member must be 
 58.21  from greater Minnesota, and one member may be appointed at-large.
 58.22  The board must be composed of: 
 58.23     (1) one present or former superintendent of an independent 
 58.24  school district; 
 58.25     (2) one present or former special education director; 
 58.26     (3) the commissioner of children, families, and learning or 
 58.27  the commissioner's designee; 
 58.28     (4) one member of the blind community; 
 58.29     (5) one member of the deaf community; and 
 58.30     (6) two members of the general public with business, 
 58.31  administrative, or financial expertise; 
 58.32     (7) one nonvoting, unpaid ex officio member appointed by 
 58.33  the site council for the state academy for the deaf; and 
 58.34     (8) one nonvoting, unpaid ex officio member appointed by 
 58.35  the site council for the state academy for the blind. 
 58.36     Subd. 2.  [TERMS; COMPENSATION; AND OTHER.] The membership 
 59.1   terms, compensation, removal of members, and filling of 
 59.2   vacancies shall be as provided for in section 15.0575.  
 59.3   Notwithstanding section 15.0575, a member may serve not more 
 59.4   than two consecutive four-year terms. 
 59.5      Subd. 3.  [MEETINGS.] All meetings of the board shall be as 
 59.6   provided in section 471.705 and must be held in Faribault. 
 59.7      Subd. 4.  [MOST BENEFICIAL, LEAST RESTRICTIVE.] The board 
 59.8   must do what is necessary to provide the most beneficial and 
 59.9   least restrictive program of education for each pupil at the 
 59.10  academies who is handicapped by visual disability or deafness.  
 59.11     Subd. 5.  [PLANNING, EVALUATION, AND REPORTING.] To the 
 59.12  extent required in school districts, the board must establish a 
 59.13  process for the academies to include parent and community input 
 59.14  in the planning, evaluation, and reporting of curriculum and 
 59.15  pupil achievement. 
 59.16     Subd. 6.  [SITE COUNCILS.] The board may must establish, 
 59.17  and appoint members to, a site council at each academy.  The 
 59.18  site councils shall exercise power and authority granted by the 
 59.19  board.  The board must appoint to each site council the 
 59.20  exclusive representative's employee designee from each exclusive 
 59.21  representative at the academies.  The site councils may make a 
 59.22  recommendation to the governor regarding board appointments no 
 59.23  more than 30 days after receiving the list of applicants from 
 59.24  the governor. 
 59.25     Subd. 7.  [TRUSTEE OF ACADEMIES' PROPERTY.] The board is 
 59.26  the trustee of the academies' property.  Securities and money, 
 59.27  including income from the property, must be deposited in the 
 59.28  state treasury according to section 16A.275.  The deposits are 
 59.29  subject to the order of the board.  
 59.30     Subd. 8.  [GRANTS.] The board, through the chief 
 59.31  administrators of the academies, may apply for all competitive 
 59.32  grants administered by agencies of the state and other 
 59.33  government or nongovernment sources.  Application may not be 
 59.34  made for grants over which the board has discretion. 
 59.35     Sec. 21.  Minnesota Statutes 1998, section 125A.64, is 
 59.36  amended to read: 
 60.1      125A.64 [POWERS OF BOARD OF THE FARIBAULT MINNESOTA STATE 
 60.2   ACADEMIES.] 
 60.3      Subdivision 1.  [PERSONNEL.] The board of the Faribault 
 60.4   Minnesota state academies may employ central administrative 
 60.5   staff members and other personnel necessary to provide and 
 60.6   support programs and services at each academy.  
 60.7      Subd. 2.  [GET HELP FROM DEPARTMENT.] The board of the 
 60.8   Faribault Minnesota state academies may require the department 
 60.9   of children, families, and learning to provide program 
 60.10  leadership, program monitoring, and technical assistance at the 
 60.11  academies.  
 60.12     Subd. 3.  [UNCLASSIFIED POSITIONS.] The board of the 
 60.13  Faribault Minnesota state academies may place any position other 
 60.14  than residential academies administrator in the unclassified 
 60.15  service.  The position must meet the criteria in section 43A.08, 
 60.16  subdivision 1a.  
 60.17     Subd. 4.  [RESIDENTIAL AND BUILDING MAINTENANCE SERVICES.] 
 60.18  The board of the Faribault Minnesota state academies may enter 
 60.19  into agreements with public or private agencies or institutions 
 60.20  to provide residential and building maintenance services.  The 
 60.21  board of the Faribault Minnesota state academies must first 
 60.22  decide that contracting for the services is more efficient and 
 60.23  less expensive than not contracting for them.  
 60.24     Subd. 5.  [STUDENT TEACHERS AND PROFESSIONAL TRAINEES.] (a) 
 60.25  The board of the Faribault Minnesota state academies may enter 
 60.26  into agreements with teacher preparation institutions for 
 60.27  student teachers to get practical experience at the academies.  
 60.28  A licensed teacher must provide appropriate supervision of each 
 60.29  student teacher.  
 60.30     (b) The board of the Faribault Minnesota state academies 
 60.31  may enter into agreements with accredited higher education 
 60.32  institutions for certain student trainees to get practical 
 60.33  experience at the academies.  The students must be preparing 
 60.34  themselves in a professional field that provides special 
 60.35  services to children with a disability in school programs.  To 
 60.36  be a student trainee in a field, a person must have completed at 
 61.1   least two years of an approved program in the field.  A person 
 61.2   who is licensed or registered in the field must provide 
 61.3   appropriate supervision of each student trainee.  
 61.4      Sec. 22.  Minnesota Statutes 1998, section 125A.65, 
 61.5   subdivision 3, is amended to read: 
 61.6      Subd. 3.  [EDUCATIONAL PROGRAM; TUITION.] When it is 
 61.7   determined pursuant to section 125A.69, subdivision 1 or 2, that 
 61.8   the child is entitled to attend either school, the board of the 
 61.9   Faribault Minnesota state academies must provide the appropriate 
 61.10  educational program for the child.  The board of the Faribault 
 61.11  Minnesota state academies must make a tuition charge to the 
 61.12  child's district of residence for the cost of providing the 
 61.13  program.  The amount of tuition charged must not exceed the 
 61.14  basic revenue of the district for that child, for the amount of 
 61.15  time the child is in the program.  For purposes of this 
 61.16  subdivision, "basic revenue" has the meaning given it in section 
 61.17  126C.10, subdivision 2.  The district of the child's residence 
 61.18  must pay the tuition and may claim general education aid for the 
 61.19  child.  Tuition received by the board of the Faribault Minnesota 
 61.20  state academies, except for tuition received under subdivision 
 61.21  4, must be deposited in the state treasury as provided in 
 61.22  subdivision 8. 
 61.23     Sec. 23.  Minnesota Statutes 1998, section 125A.65, 
 61.24  subdivision 5, is amended to read: 
 61.25     Subd. 5.  [PROVIDING APPROPRIATE EDUCATIONAL PROGRAMS.] 
 61.26  When it is determined that the child can benefit from public 
 61.27  school enrollment but that the child should also remain in 
 61.28  attendance at the applicable school, the district where the 
 61.29  institution is located must provide an appropriate educational 
 61.30  program for the child and must make a tuition charge to the 
 61.31  board of the Faribault Minnesota state academies for the actual 
 61.32  cost of providing the program, less any amount of aid received 
 61.33  pursuant to section 125A.75.  The board of the Faribault 
 61.34  Minnesota state academies must pay the tuition and other program 
 61.35  costs including the unreimbursed transportation costs.  Aids for 
 61.36  children with a disability must be paid to the district 
 62.1   providing the special instruction and services.  Special 
 62.2   transportation must be provided by the district providing the 
 62.3   educational program and the state must reimburse that district 
 62.4   within the limits provided by law.  
 62.5      Sec. 24.  Minnesota Statutes 1998, section 125A.65, 
 62.6   subdivision 6, is amended to read: 
 62.7      Subd. 6.  [TUITION REDUCTION.] Notwithstanding the 
 62.8   provisions of subdivisions 3 and 5, the board of the Faribault 
 62.9   Minnesota state academies may agree to make a tuition charge for 
 62.10  less than the amount specified in subdivision 3 for pupils 
 62.11  attending the applicable school who are residents of the 
 62.12  district where the institution is located and who do not board 
 62.13  at the institution, if that district agrees to make a tuition 
 62.14  charge to the board of the Faribault Minnesota state academies 
 62.15  for less than the amount specified in subdivision 5 for 
 62.16  providing appropriate educational programs to pupils attending 
 62.17  the applicable school. 
 62.18     Sec. 25.  Minnesota Statutes 1998, section 125A.65, 
 62.19  subdivision 7, is amended to read: 
 62.20     Subd. 7.  [STAFF ALLOCATION.] Notwithstanding the 
 62.21  provisions of subdivisions 3 and 5, the board of the Faribault 
 62.22  Minnesota state academies may agree to supply staff from the 
 62.23  Minnesota state academy for the deaf and the Minnesota state 
 62.24  academy for the blind to participate in the programs provided by 
 62.25  the district where the institutions are located when the 
 62.26  programs are provided to students in attendance at the state 
 62.27  schools.  
 62.28     Sec. 26.  Minnesota Statutes 1998, section 125A.65, 
 62.29  subdivision 8, is amended to read: 
 62.30     Subd. 8.  [STUDENT COUNT; TUITION.] On May 1 of each year, 
 62.31  the board of the Faribault Minnesota state academies shall count 
 62.32  the actual number of Minnesota resident kindergarten and 
 62.33  elementary students and the actual number of Minnesota resident 
 62.34  secondary students enrolled and receiving education services at 
 62.35  the Minnesota state academy for the deaf and the Minnesota state 
 62.36  academy for the blind.  The board of the Faribault Minnesota 
 63.1   state academies shall deposit in the state treasury an amount 
 63.2   equal to all tuition received less:  
 63.3      (1) the total number of students on May 1 less 175, times 
 63.4   the ratio of the number of kindergarten and elementary students 
 63.5   to the total number of students on May 1, times the general 
 63.6   education formula allowance; plus 
 63.7      (2) the total number of students on May 1 less 175, times 
 63.8   the ratio of the number of secondary students on May 1 to the 
 63.9   total number of students on May 1, times 1.3, times the general 
 63.10  education formula allowance.  
 63.11     Sec. 27.  Minnesota Statutes 1998, section 125A.65, 
 63.12  subdivision 10, is amended to read: 
 63.13     Subd. 10.  [ANNUAL APPROPRIATION.] There is annually 
 63.14  appropriated to the department for the Faribault Minnesota state 
 63.15  academies the tuition amounts received and credited to the 
 63.16  general operation account of the academies under this section.  
 63.17  A balance in an appropriation under this paragraph does not 
 63.18  cancel but is available in successive fiscal years.  
 63.19     Sec. 28.  Minnesota Statutes 1998, section 125A.68, 
 63.20  subdivision 1, is amended to read: 
 63.21     Subdivision 1.  [SUBJECTS.] The board of the Faribault 
 63.22  Minnesota state academies must establish procedures for:  
 63.23     (1) admission, including short-term admission, to the 
 63.24  academies; 
 63.25     (2) discharge from the academies; 
 63.26     (3) decisions on a pupil's program at the academies; and 
 63.27     (4) evaluation of a pupil's progress at the academies.  
 63.28     Sec. 29.  Minnesota Statutes 1998, section 125A.69, 
 63.29  subdivision 1, is amended to read: 
 63.30     Subdivision 1.  [TWO KINDS.] There are two kinds of 
 63.31  admission to the Minnesota state academies.  
 63.32     (a) A pupil who is deaf, hard of hearing, or blind-deaf, 
 63.33  may be admitted to the academy for the deaf.  A pupil who is 
 63.34  blind or visually impaired, blind-deaf, or multiply handicapped 
 63.35  may be admitted to the academy for the blind.  For a pupil to be 
 63.36  admitted, two decisions must be made under sections 125A.03 to 
 64.1   125A.24 and 125A.65. 
 64.2      (1) It must be decided by the individual education planning 
 64.3   team that education in regular or special education classes in 
 64.4   the pupil's district of residence cannot be achieved 
 64.5   satisfactorily because of the nature and severity of the 
 64.6   deafness or blindness or visual impairment respectively. 
 64.7      (2) It must be decided by the individual education planning 
 64.8   team that the academy provides the most appropriate placement 
 64.9   within the least restrictive alternative for the pupil.  
 64.10     (b) A deaf or hard of hearing child or a visually impaired 
 64.11  pupil may be admitted to get socialization skills or on a 
 64.12  short-term basis for skills development.  
 64.13     Sec. 30.  Minnesota Statutes 1998, section 125A.69, 
 64.14  subdivision 3, is amended to read: 
 64.15     Subd. 3.  [OUT-OF-STATE ADMISSIONS.] An applicant from 
 64.16  another state who can benefit from attending either academy may 
 64.17  be admitted to the academy if the admission does not prevent an 
 64.18  eligible Minnesota resident from being admitted.  The state 
 64.19  board of education board of the Minnesota state academies must 
 64.20  obtain reimbursement from the other state for the costs of the 
 64.21  out-of-state admission.  The state board may enter into an 
 64.22  agreement with the appropriate authority in the other state for 
 64.23  the reimbursement.  Money received from another state must be 
 64.24  deposited in the general fund and credited to the general 
 64.25  operating account of the academies.  The money is appropriated 
 64.26  to the academies. 
 64.27     Sec. 31.  Minnesota Statutes 1998, section 125A.70, 
 64.28  subdivision 2, is amended to read: 
 64.29     Subd. 2.  [LOCAL SOCIAL SERVICES AGENCY.] If the person 
 64.30  liable for support of a pupil cannot support the pupil, the 
 64.31  local social services agency of the county of the pupil's 
 64.32  residence must do so.  The commissioner of children, families, 
 64.33  and learning must decide how much the local social services 
 64.34  agency must pay.  The board of the Faribault Minnesota state 
 64.35  academies must adopt rules that tell how the commissioner is to 
 64.36  fix the amount.  The local social services agency must make the 
 65.1   payment to the superintendent of the school district of 
 65.2   residence.  
 65.3      Sec. 32.  Minnesota Statutes 1998, section 125A.71, 
 65.4   subdivision 3, is amended to read: 
 65.5      Subd. 3.  [CONTRACTS; FEES; APPROPRIATION.] The state board 
 65.6   of the Minnesota state academies may enter into agreements for 
 65.7   the academies to provide respite care and supplemental 
 65.8   educational instruction and services including assessments and 
 65.9   counseling.  The agreements may be made with public or private 
 65.10  agencies or institutions, school districts, service 
 65.11  cooperatives, or counties.  The board may authorize the 
 65.12  academies to provide conferences, seminars, nondistrict and 
 65.13  district requested technical assistance, and production of 
 65.14  instructionally related materials. 
 65.15     Sec. 33.  Minnesota Statutes 1998, section 125A.72, is 
 65.16  amended to read: 
 65.17     125A.72 [STUDENT ACTIVITIES ACCOUNT.] 
 65.18     Subdivision 1.  [STUDENT ACTIVITIES; RECEIPTS; 
 65.19  APPROPRIATION.] All receipts of any kind generated to operate 
 65.20  student activities, including student fees, donations and 
 65.21  contributions, and gate receipts must be deposited in the state 
 65.22  treasury.  The receipts are appropriated annually to the 
 65.23  residential Minnesota state academies for student activities 
 65.24  purposes.  They are not subject to budgetary control by the 
 65.25  commissioner of finance. 
 65.26     Subd. 2.  [TO STUDENT ACTIVITIES ACCOUNT.] The money 
 65.27  appropriated in subdivision 1 to the residential Minnesota state 
 65.28  academies for student activities must be credited to a Faribault 
 65.29  Minnesota state academies' student activities account and may be 
 65.30  spent only for Faribault Minnesota state academies' student 
 65.31  activities purposes. 
 65.32     Subd. 3.  [CARRYOVER.] An unexpended balance in the 
 65.33  Faribault Minnesota state academies' student activities account 
 65.34  may be carried over from the first fiscal year of the biennium 
 65.35  into the second fiscal year of the biennium and from one 
 65.36  biennium to the next.  The amount carried over must not be taken 
 66.1   into account in determining state appropriations and must not be 
 66.2   deducted from a later appropriation. 
 66.3      Subd. 4.  [MONEY FROM CERTAIN STUDENT ACTIVITIES 
 66.4   SPECIFICALLY INCLUDED AMONG RECEIPTS.] Any money generated by 
 66.5   a Faribault Minnesota state academies' student activity that 
 66.6   involves:  
 66.7      (1) state employees who are receiving compensation for 
 66.8   their involvement with the activity; 
 66.9      (2) the use of state facilities; or 
 66.10     (3) money raised for student activities in the name of the 
 66.11  residential Minnesota state academies 
 66.12  is specifically included among the kinds of receipts that are 
 66.13  described in subdivision 1. 
 66.14     Sec. 34.  Minnesota Statutes 1998, section 125A.73, is 
 66.15  amended to read: 
 66.16     125A.73 [DUTIES OF STATE DEPARTMENTS.] 
 66.17     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 66.18  LEARNING.] The department of children, families, and learning 
 66.19  must assist the board of the Faribault Minnesota state academies 
 66.20  in preparing reports on the academies.  
 66.21     Subd. 2.  [DEPARTMENT OF EMPLOYEE RELATIONS.] The 
 66.22  department of employee relations, in cooperation with the board 
 66.23  of the Faribault Minnesota state academies, must develop a 
 66.24  statement of necessary qualifications and skills for all staff 
 66.25  members of the academies. 
 66.26     Sec. 35.  Minnesota Statutes 1998, section 125A.75, 
 66.27  subdivision 3, is amended to read: 
 66.28     Subd. 3.  [FULL STATE PAYMENT.] The state must pay each 
 66.29  district the actual cost incurred in providing instruction and 
 66.30  services for a child with a disability whose district of 
 66.31  residence has been determined by section 125A.17 or 125A.51, 
 66.32  paragraph (b), and who is temporarily placed in a state 
 66.33  institution or, a licensed residential facility, or foster 
 66.34  facility for care and treatment.  This section does not apply to 
 66.35  a child placed in a foster home or a foster group home.  The 
 66.36  regular education program at the facility must be an approved 
 67.1   program according to section 125A.515. 
 67.2      Upon following the procedure specified by the commissioner, 
 67.3   the district may bill the state the actual cost incurred in 
 67.4   providing the services including transportation costs and a 
 67.5   proportionate amount of capital expenditures and debt service, 
 67.6   minus the amount of the basic revenue, as defined in section 
 67.7   126C.10, subdivision 2, of the district for the child and the 
 67.8   special education aid, transportation aid, and any other aid 
 67.9   earned on behalf of the child.  The limit in subdivision 2 
 67.10  applies to aid paid pursuant to this subdivision.  
 67.11     To the extent possible, the commissioner shall obtain 
 67.12  reimbursement from another state for the cost of serving any 
 67.13  child whose parent or guardian resides in that state.  The 
 67.14  commissioner may contract with the appropriate authorities of 
 67.15  other states to effect reimbursement.  All money received from 
 67.16  other states must be paid to the state treasury and placed in 
 67.17  the general fund.  
 67.18     Sec. 36.  Minnesota Statutes 1998, section 125A.75, 
 67.19  subdivision 8, is amended to read: 
 67.20     Subd. 8.  [LITIGATION AND HEARING COSTS.] (a) For fiscal 
 67.21  year 1999 and thereafter, the commissioner of children, 
 67.22  families, and learning, or the commissioner's designee, shall 
 67.23  use state funds to pay school districts for the administrative 
 67.24  costs of a due process hearing incurred under section 125A.09, 
 67.25  subdivisions 6, 10, and 11, including hearing officer fees, 
 67.26  court reporter fees, mileage costs, transcript 
 67.27  costs, interpreter and transliterator fees, independent 
 67.28  evaluations ordered by the hearing officer, and rental of 
 67.29  hearing rooms, but not including district attorney fees.  To 
 67.30  receive state aid under this paragraph, a school district shall 
 67.31  submit to the commissioner at the end of the school year by 
 67.32  August 1 an itemized list of unreimbursed actual costs for fees 
 67.33  and other expenses under this paragraph incurred after June 30, 
 67.34  1998, for hearings completed during the previous fiscal year.  
 67.35  State funds used for aid to school districts under this 
 67.36  paragraph shall be based on the unreimbursed actual costs and 
 68.1   fees submitted by a district from previous school years. 
 68.2      (b) For fiscal year 1999 and thereafter, a school district, 
 68.3   to the extent to which it prevails under United States Code, 
 68.4   title 20, section 1415(i)(3)(B)(D) and Rule 68 of the Federal 
 68.5   Rules of Civil Procedure, shall receive state aid equal to 50 
 68.6   percent of the total actual cost of attorney fees incurred after 
 68.7   a request for a due process hearing under section 125A.09, 
 68.8   subdivisions 6, 9, and 11, is served upon the parties.  A 
 68.9   district is eligible for reimbursement for attorney fees under 
 68.10  this paragraph only if: 
 68.11     (1) a court of competent jurisdiction determines that the 
 68.12  parent is not the prevailing party under United States Code, 
 68.13  title 20, section 1415(i)(3)(B)(D), or the parties stipulate 
 68.14  that the parent is not the prevailing party; 
 68.15     (2) the district has made a good faith effort to resolve 
 68.16  the dispute through mediation, but the obligation to mediate 
 68.17  does not compel the district to agree to a proposal or make a 
 68.18  concession; and 
 68.19     (3) the district made an offer of settlement under Rule 68 
 68.20  of the Federal Rules of Civil Procedure.  
 68.21     To receive aid, a school district that meets the criteria 
 68.22  of this paragraph shall submit to the commissioner at the end of 
 68.23  the school year an itemized list of unreimbursed actual attorney 
 68.24  fees associated with a due process hearing under section 
 68.25  125A.09, subdivisions 6, 9, and 11.  Aid under this paragraph 
 68.26  for each school district is based on unreimbursed actual 
 68.27  attorney fees submitted by the district from previous school 
 68.28  years. 
 68.29     (c) For fiscal year 1999 and thereafter, a school district 
 68.30  is eligible to receive state aid for 50 percent of the total 
 68.31  actual cost of attorney fees it incurs in appealing to a court 
 68.32  of competent jurisdiction the findings, conclusions, and order 
 68.33  of a due process hearing under section 125A.09, subdivisions 6, 
 68.34  9, and 11.  The district is eligible for reimbursement under 
 68.35  this paragraph only if the commissioner authorizes the 
 68.36  reimbursement after evaluating the merits of the case.  In a 
 69.1   case where the commissioner is a named party in the litigation, 
 69.2   the commissioner of the bureau of mediation services shall make 
 69.3   the determination regarding reimbursement.  The commissioner's 
 69.4   decision is final.  
 69.5      (d) The commissioner shall provide districts with a form on 
 69.6   which to annually report litigation costs under this section and 
 69.7   shall base aid estimates on those preliminary reports submitted 
 69.8   by the district during the current fiscal year. 
 69.9      Sec. 37.  Minnesota Statutes 1998, section 125A.76, 
 69.10  subdivision 1, is amended to read: 
 69.11     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 69.12  section and section 125A.77, the definitions in this subdivision 
 69.13  apply. 
 69.14     (a) "Base year" for fiscal year 1998 and later fiscal years 
 69.15  means the second fiscal year preceding the fiscal year for which 
 69.16  aid will be paid. 
 69.17     (b) "Basic revenue" has the meaning given it in section 
 69.18  126C.10, subdivision 2.  For the purposes of computing basic 
 69.19  revenue pursuant to this section, each child with a disability 
 69.20  shall be counted as prescribed in section 126C.05, subdivision 1.
 69.21     (c) "Essential personnel" means teachers, related services, 
 69.22  and support services staff providing direct services to students.
 69.23     (d) "Average daily membership" has the meaning given it in 
 69.24  section 126C.05. 
 69.25     (e) "Program growth factor" means 1.00 1.012 for fiscal 
 69.26  year 2000 2002 and later. 
 69.27     (f) "Aid percentage factor" means 60 percent for fiscal 
 69.28  year 1996, 70 percent for fiscal year 1997, 80 percent for 
 69.29  fiscal year 1998, 90 percent for fiscal year 1999, and 100 
 69.30  percent for fiscal years 2000 and later. 
 69.31     (g) "Levy percentage factor" means 100 minus the aid 
 69.32  percentage factor for that year. 
 69.33     Sec. 38.  Minnesota Statutes 1998, section 125A.76, 
 69.34  subdivision 2, is amended to read: 
 69.35     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
 69.36  education base revenue equals the sum of the following amounts 
 70.1   computed using base year data: 
 70.2      (1) 68 percent of the salary of each essential person 
 70.3   employed in the district's program for children with a 
 70.4   disability during the fiscal year, not including the share of 
 70.5   salaries for personnel providing health-related services counted 
 70.6   in clause (8), whether the person is employed by one or more 
 70.7   districts or a Minnesota correctional facility operating on a 
 70.8   fee-for-service basis; 
 70.9      (2) for the Minnesota state academy for the deaf or the 
 70.10  Minnesota state academy for the blind, 68 percent of the salary 
 70.11  of each instructional aide assigned to a child attending the 
 70.12  academy, if that aide is required by the child's individual 
 70.13  education plan; 
 70.14     (3) for special instruction and services provided to any 
 70.15  pupil by contracting with public, private, or voluntary agencies 
 70.16  other than school districts, in place of special instruction and 
 70.17  services provided by the district, 52 percent of the difference 
 70.18  between the amount of the contract and the basic revenue of the 
 70.19  district for that pupil for the fraction of the school day the 
 70.20  pupil receives services under the contract; 
 70.21     (4) for special instruction and services provided to any 
 70.22  pupil by contracting for services with public, private, or 
 70.23  voluntary agencies other than school districts, that are 
 70.24  supplementary to a full educational program provided by the 
 70.25  school district, 52 percent of the amount of the contract for 
 70.26  that pupil; 
 70.27     (5) for supplies and equipment purchased or rented for use 
 70.28  in the instruction of children with a disability, not including 
 70.29  the portion of the expenses for supplies and equipment used to 
 70.30  provide health-related services counted in clause (8), an amount 
 70.31  equal to 47 percent of the sum actually expended by the 
 70.32  district, or a Minnesota correctional facility operating on a 
 70.33  fee-for-service basis, but not to exceed an average of $47 in 
 70.34  any one school year for each child with a disability receiving 
 70.35  instruction; 
 70.36     (6) for fiscal years 1997 and later, special education base 
 71.1   revenue shall include amounts under clauses (1) to (5) for 
 71.2   special education summer programs provided during the base year 
 71.3   for that fiscal year; and 
 71.4      (7) for fiscal years 1999 and later, the cost of providing 
 71.5   transportation services for children with disabilities under 
 71.6   section 123B.92, subdivision 1, paragraph (b), clause (4); and 
 71.7      (8) for fiscal years 2001 and later the cost of salaries, 
 71.8   supplies and equipment, and other related costs actually 
 71.9   expended by the district for the nonfederal share of medical 
 71.10  assistance services according to section 256B.0625, subdivision 
 71.11  26. 
 71.12     (b) If requested by a school district operating a special 
 71.13  education program during the base year for less than the full 
 71.14  fiscal year, or a school district in which is located a 
 71.15  Minnesota correctional facility operating on a fee-for-service 
 71.16  basis for less than the full fiscal year, the commissioner may 
 71.17  adjust the base revenue to reflect the expenditures that would 
 71.18  have occurred during the base year had the program been operated 
 71.19  for the full fiscal year. 
 71.20     (c) Notwithstanding paragraphs (a) and (b), the portion of 
 71.21  a school district's base revenue attributable to a Minnesota 
 71.22  correctional facility operating on a fee-for-service basis 
 71.23  during the facility's first year of operating on a 
 71.24  fee-for-service basis shall be computed using current year data. 
 71.25     Sec. 39.  Minnesota Statutes 1998, section 125A.76, 
 71.26  subdivision 4, is amended to read: 
 71.27     Subd. 4.  [STATE TOTAL SPECIAL EDUCATION REVENUE AID.] The 
 71.28  state total special education revenue aid for fiscal year 1998 
 71.29  2000 equals $358,542,000 $463,000,000.  The state total special 
 71.30  education revenue aid for fiscal year 1999 2001 equals 
 71.31  $435,322,000 $474,000,000.  The state total special 
 71.32  education revenue aid for later fiscal years equals:  
 71.33     (1) the state total special education revenue aid for the 
 71.34  preceding fiscal year; times 
 71.35     (2) the program growth factor; times 
 71.36     (3) the ratio of the state total average daily membership 
 72.1   for the current fiscal year to the state total average daily 
 72.2   membership for the preceding fiscal year. 
 72.3      Sec. 40.  Minnesota Statutes 1998, section 125A.76, 
 72.4   subdivision 5, is amended to read: 
 72.5      Subd. 5.  [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE AID.] 
 72.6   (a) A school district's special education revenue aid for fiscal 
 72.7   year 1996 2000 and later equals the state total special 
 72.8   education revenue aid, minus the amount determined 
 72.9   under paragraph paragraphs (b) and (c), times the ratio of the 
 72.10  district's adjusted special education base revenue to the state 
 72.11  total adjusted special education base revenue.  If the state 
 72.12  board of education modifies its rules for special education in a 
 72.13  manner that increases a district's special education obligations 
 72.14  or service requirements, the commissioner shall annually 
 72.15  increase each district's special education revenue aid by the 
 72.16  amount necessary to compensate for the increased service 
 72.17  requirements.  The additional revenue aid equals the cost in the 
 72.18  current year attributable to rule changes not reflected in the 
 72.19  computation of special education base revenue, multiplied by the 
 72.20  appropriate percentages from subdivision 2. 
 72.21     (b) Notwithstanding paragraph (a), if the special education 
 72.22  base revenue for a district equals zero, the special education 
 72.23  revenue aid equals the amount computed according to subdivision 
 72.24  2 using current year data. 
 72.25     (c) Notwithstanding paragraphs (a) and (b), if the special 
 72.26  education base revenue for a district is greater than zero, and 
 72.27  the base year amount for the district under subdivision 2, 
 72.28  paragraph (a), clause (7), equals zero, the special education 
 72.29  revenue aid equals the sum of the amount computed according to 
 72.30  paragraph (a), plus the amount computed according to subdivision 
 72.31  2, paragraph (a), clause (7), using current year data. 
 72.32     Sec. 41.  Minnesota Statutes 1998, section 125A.79, 
 72.33  subdivision 1, is amended to read: 
 72.34     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 72.35  section, the definitions in this subdivision apply. 
 72.36     (a) "Unreimbursed special education cost" means the sum of 
 73.1   the following: 
 73.2      (1) expenditures for teachers' salaries, contracted 
 73.3   services, supplies, equipment, and transportation services 
 73.4   eligible for revenue under section 125A.76; plus 
 73.5      (2) expenditures for tuition bills received under sections 
 73.6   125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
 73.7   under sections 125A.76, subdivision 2, and 124.3202, subdivision 
 73.8   1; minus 
 73.9      (3) revenue for teachers' salaries, contracted services, 
 73.10  supplies, and equipment under sections 124.3202 and 124A.76; 
 73.11  minus 
 73.12     (4) tuition receipts under sections 125A.03 to 125A.24 and 
 73.13  125A.65 for services eligible for revenue under sections 
 73.14  124.3202, subdivision 1, and 124A.76, subdivision 2. 
 73.15     (b) "General revenue" means for fiscal year 1996, the sum 
 73.16  of the general education revenue according to section 126C.10, 
 73.17  subdivision 1, as adjusted according to section 127A.47, 
 73.18  subdivision 7, plus the total referendum revenue according to 
 73.19  section 126C.17, subdivision 4.  For fiscal years 1997 and 
 73.20  later, "general revenue" means the sum of the general education 
 73.21  revenue according to section 126C.10, subdivision 1, as adjusted 
 73.22  according to section 127A.47, subdivision subdivisions 7 and 8, 
 73.23  plus the total referendum revenue minus transportation sparsity 
 73.24  revenue minus total operating capital revenue.  
 73.25     (c) "Average daily membership" has the meaning given it in 
 73.26  section 126C.05. 
 73.27     (d) "Program growth factor" means 1.044 for fiscal year 
 73.28  2002 and 1.02 for fiscal year 2003 and later. 
 73.29     Sec. 42.  Minnesota Statutes 1998, section 125A.79, 
 73.30  subdivision 2, is amended to read: 
 73.31     Subd. 2.  [EXCESS COST REVENUE AID, FISCAL YEARS 2000 AND 
 73.32  2001.] For 1997 and later fiscal years 2000 and 2001, a 
 73.33  district's special education excess cost revenue aid equals the 
 73.34  greatest of: 
 73.35     (a) 70 75 percent of the difference between (1) the 
 73.36  district's unreimbursed special education cost and (2) 5.7 4.4 
 74.1   percent for fiscal year 1997 and later years of the district's 
 74.2   general revenue; 
 74.3      (b) 70 percent of the difference between (1) the increase 
 74.4   in the district's unreimbursed special education cost between 
 74.5   the base year as defined in section 125A.76, subdivision 1, and 
 74.6   the current year and (2) 1.6 percent of the district's general 
 74.7   revenue; or 
 74.8      (c) zero. 
 74.9      Sec. 43.  Minnesota Statutes 1998, section 125A.79, is 
 74.10  amended by adding a subdivision to read: 
 74.11     Subd. 5.  [INITIAL EXCESS COST AID.] For fiscal years 2002 
 74.12  and later, a district's initial excess cost aid equals the 
 74.13  greatest of: 
 74.14     (1) 75 percent of the difference between (i) the district's 
 74.15  unreimbursed special education cost and (ii) 4.4 percent of the 
 74.16  district's general revenue; 
 74.17     (2) 70 percent of the difference between (i) the increase 
 74.18  in the district's unreimbursed special education cost between 
 74.19  the base year as defined in section 125A.76, subdivision 1, and 
 74.20  the current year and (ii) 1.6 percent of the district's general 
 74.21  revenue; or 
 74.22     (3) zero. 
 74.23     Sec. 44.  Minnesota Statutes 1998, section 125A.79, is 
 74.24  amended by adding a subdivision to read: 
 74.25     Subd. 6.  [STATE TOTAL SPECIAL EDUCATION EXCESS COST 
 74.26  AID.] The state total special education excess cost aid for 
 74.27  fiscal year 2002 and later fiscal years equals: 
 74.28     (1) the state total special education excess cost aid for 
 74.29  the preceding fiscal year; times 
 74.30     (2) the program growth factor; times 
 74.31     (3) the ratio of the state total average daily membership 
 74.32  for the current fiscal year to the state total average daily 
 74.33  membership for the preceding fiscal year. 
 74.34     Sec. 45.  Minnesota Statutes 1998, section 125A.79, is 
 74.35  amended by adding a subdivision to read: 
 74.36     Subd. 7.  [DISTRICT SPECIAL EDUCATION EXCESS COST AID.] A 
 75.1   district's special education excess cost aid for fiscal year 
 75.2   2002 and later equals the state total special education excess 
 75.3   cost aid times the ratio of the district's initial excess cost 
 75.4   aid to the state total initial excess cost aid. 
 75.5      Sec. 46.  Minnesota Statutes 1998, section 125A.79, is 
 75.6   amended by adding a subdivision to read: 
 75.7      Subd. 8.  [OUT-OF-STATE TUITION.] For children who are 
 75.8   residents of the state, receive services under section 125A.76, 
 75.9   subdivisions 1 and 2, and are placed in a care and treatment 
 75.10  facility by court action in a state that does not have a 
 75.11  reciprocity agreement with the commissioner under section 
 75.12  125A.115, the resident school district shall submit the balance 
 75.13  of the tuition bills, minus the amount of the basic revenue, as 
 75.14  defined by section 126C.10, subdivision 2, of the district for 
 75.15  the child and the special education aid, and any other aid 
 75.16  earned on behalf of the child. 
 75.17     Sec. 47.  [125A.80] [UNIFORM BILLING SYSTEM FOR THE 
 75.18  EDUCATION COSTS OF OUT-OF-HOME PLACED STUDENTS.] 
 75.19     The commissioner, in cooperation with the commissioners of 
 75.20  human services and corrections and with input from appropriate 
 75.21  billing system users, shall develop and implement a uniform 
 75.22  billing system for school districts and other agencies, 
 75.23  including private providers, who provide the educational 
 75.24  services for students who are placed out of the home.  The 
 75.25  uniform billing system must: 
 75.26     (1) allow for the proper and timely billing to districts by 
 75.27  service providers with a minimum amount of district 
 75.28  administration; 
 75.29     (2) allow districts to bill the state for certain types of 
 75.30  special education and regular education services as provided by 
 75.31  law; 
 75.32     (3) provide flexibility for the types of services that are 
 75.33  provided for children placed out of the home, including day 
 75.34  treatment services; 
 75.35     (4) allow the commissioner to track the type, cost, and 
 75.36  quality of services provided for children placed out of the 
 76.1   home; 
 76.2      (5) conform existing special education and proposed regular 
 76.3   education billing procedures; 
 76.4      (6) provide a uniform reporting standard of per diem rates; 
 76.5      (7) determine allowable expenses and maximum reimbursement 
 76.6   rates for the state reimbursement of care and treatment services 
 76.7   according to section 124D.701; and 
 76.8      (8) provide a process for the district to appeal to the 
 76.9   commissioner tuition bills submitted to districts and to the 
 76.10  state. 
 76.11     Sec. 48.  Minnesota Statutes 1998, section 126C.44, is 
 76.12  amended to read: 
 76.13     126C.44 [CRIME-RELATED COSTS LEVY.] 
 76.14     For taxes levied in 1991 and subsequent years, payable in 
 76.15  1992 and subsequent years, Each district may make a levy on all 
 76.16  taxable property located within the district for the purposes 
 76.17  specified in this subdivision.  The maximum amount which may be 
 76.18  levied for all costs under this subdivision shall be equal to 
 76.19  $1.50 multiplied by the population of the school district. For 
 76.20  purposes of this subdivision, "population" of the school 
 76.21  district means the same as contained in section 275.14.  The 
 76.22  proceeds of the levy must be used for directly funding the 
 76.23  following purposes or for reimbursing the cities and counties 
 76.24  who contract with the district for the following purposes:  (1) 
 76.25  to pay the costs incurred for the salaries, benefits, and 
 76.26  transportation costs of peace officers and sheriffs for liaison 
 76.27  services in the district's middle and secondary schools; (2) to 
 76.28  pay the costs for a drug abuse prevention program as defined in 
 76.29  Minnesota Statutes 1991 Supplement, section 609.101, subdivision 
 76.30  3, paragraph (f), in the elementary schools; or (3) to pay the 
 76.31  costs for a gang resistance education training curriculum in the 
 76.32  middle schools; or (4) to pay the costs for other crime 
 76.33  prevention and drug abuse and violence prevention measures taken 
 76.34  by the school district.  The district must initially attempt to 
 76.35  contract for these services to be provided by peace officers or 
 76.36  sheriffs with the police department of each city or the 
 77.1   sheriff's department of the county within the district 
 77.2   containing the school receiving the services.  If a local police 
 77.3   department or a county sheriff's department does not wish to 
 77.4   provide the necessary services, the district may contract for 
 77.5   these services with any other police or sheriff's department 
 77.6   located entirely or partially within the school district's 
 77.7   boundaries.  The levy authorized under this subdivision is not 
 77.8   included in determining the school district's levy limitations. 
 77.9      Sec. 49.  Minnesota Statutes 1998, section 127A.45, is 
 77.10  amended by adding a subdivision to read: 
 77.11     Subd. 12a.  [FORWARD SHIFTED AID PAYMENTS.] Nineteen 
 77.12  percent of the state aid in fiscal year 1999, and 31 percent of 
 77.13  the state aid in fiscal years 2000 and later received under 
 77.14  section 124D.86 must be paid by the state to the recipient 
 77.15  school district on July 15 of that year.  The recipient school 
 77.16  district must recognize this aid in the same fiscal year as the 
 77.17  levy is recognized. 
 77.18     Sec. 50.  Minnesota Statutes 1998, section 127A.45, 
 77.19  subdivision 13, is amended to read: 
 77.20     Subd. 13.  [AID PAYMENT PERCENTAGE.] Except as provided in 
 77.21  subdivisions 11, 12, 12a, and 14, each fiscal year, all 
 77.22  education aids and credits in this chapter and chapters 120A, 
 77.23  120B, 121A, 122A, 123A, 123B, 124B, 124D, 125A, 125B, 126C, 134, 
 77.24  and section 273.1392, shall be paid at 90 percent of the 
 77.25  estimated entitlement during the fiscal year of the 
 77.26  entitlement.  The final adjustment payment, according to 
 77.27  subdivision 9, must be the amount of the actual entitlement, 
 77.28  after adjustment for actual data, minus the payments made during 
 77.29  the fiscal year of the entitlement. 
 77.30     Sec. 51.  Minnesota Statutes 1998, section 127A.47, 
 77.31  subdivision 2, is amended to read: 
 77.32     Subd. 2.  [REPORTING; REVENUE FOR HOMELESS.] For all school 
 77.33  purposes, unless otherwise specifically provided by law, a 
 77.34  homeless pupil is a resident of the school district in which the 
 77.35  homeless shelter or other program, center, or facility assisting 
 77.36  the homeless pupil or the pupil's family is located that enrolls 
 78.1   the pupil. 
 78.2      Sec. 52.  Minnesota Statutes 1998, section 241.021, 
 78.3   subdivision 1, is amended to read: 
 78.4      Subdivision 1.  [SUPERVISION OVER CORRECTIONAL 
 78.5   INSTITUTIONS.] (1) The commissioner of corrections shall inspect 
 78.6   and license all correctional facilities throughout the state, 
 78.7   whether public or private, established and operated for the 
 78.8   detention and confinement of persons detained or confined 
 78.9   therein according to law except to the extent that they are 
 78.10  inspected or licensed by other state regulating agencies.  The 
 78.11  commissioner shall promulgate pursuant to chapter 14, rules 
 78.12  establishing minimum standards for these facilities with respect 
 78.13  to their management, operation, physical condition, and the 
 78.14  security, safety, health, treatment, and discipline of persons 
 78.15  detained or confined therein.  Commencing September 1, 1980, no 
 78.16  individual, corporation, partnership, voluntary association, or 
 78.17  other private organization legally responsible for the operation 
 78.18  of a correctional facility may operate the facility unless 
 78.19  licensed by the commissioner of corrections.  The commissioner 
 78.20  shall review the correctional facilities described in this 
 78.21  subdivision at least once every biennium, except as otherwise 
 78.22  provided herein, to determine compliance with the minimum 
 78.23  standards established pursuant to this subdivision.  The 
 78.24  commissioner shall grant a license to any facility found to 
 78.25  conform to minimum standards or to any facility which, in the 
 78.26  commissioner's judgment, is making satisfactory progress toward 
 78.27  substantial conformity and the interests and well-being of the 
 78.28  persons detained or confined therein are protected.  The 
 78.29  commissioner may grant licensure up to two years.  The 
 78.30  commissioner shall have access to the buildings, grounds, books, 
 78.31  records, staff, and to persons detained or confined in these 
 78.32  facilities.  The commissioner may require the officers in charge 
 78.33  of these facilities to furnish all information and statistics 
 78.34  the commissioner deems necessary, at a time and place designated 
 78.35  by the commissioner.  The commissioner may require that any or 
 78.36  all such information be provided through the department of 
 79.1   corrections detention information system.  The education program 
 79.2   offered in a correctional facility for the detention or 
 79.3   confinement of juvenile offenders must be approved by the 
 79.4   commissioner of children, families, and learning before the 
 79.5   commissioner of corrections may grant a license to the facility. 
 79.6      (2) Any state agency which regulates, inspects, or licenses 
 79.7   certain aspects of correctional facilities shall, insofar as is 
 79.8   possible, ensure that the minimum standards it requires are 
 79.9   substantially the same as those required by other state agencies 
 79.10  which regulate, inspect, or license the same aspects of similar 
 79.11  types of correctional facilities, although at different 
 79.12  correctional facilities. 
 79.13     (3) Nothing in this section shall be construed to limit the 
 79.14  commissioner of corrections' authority to promulgate rules 
 79.15  establishing standards of eligibility for counties to receive 
 79.16  funds under sections 401.01 to 401.16, or to require counties to 
 79.17  comply with operating standards the commissioner establishes as 
 79.18  a condition precedent for counties to receive that funding. 
 79.19     (4) When the commissioner finds that any facility described 
 79.20  in clause (1), except foster care facilities for delinquent 
 79.21  children and youth as provided in subdivision 2, does not 
 79.22  substantially conform to the minimum standards established by 
 79.23  the commissioner and is not making satisfactory progress toward 
 79.24  substantial conformance, the commissioner shall promptly notify 
 79.25  the chief executive officer and the governing board of the 
 79.26  facility of the deficiencies and order that they be remedied 
 79.27  within a reasonable period of time.  The commissioner may by 
 79.28  written order restrict the use of any facility which does not 
 79.29  substantially conform to minimum standards to prohibit the 
 79.30  detention of any person therein for more than 72 hours at one 
 79.31  time.  When, after due notice and hearing, the commissioner 
 79.32  finds that any facility described in this subdivision, except 
 79.33  county jails and lockups as provided in sections 641.26, 642.10, 
 79.34  and 642.11, does not conform to minimum standards, or is not 
 79.35  making satisfactory progress toward substantial compliance 
 79.36  therewith, the commissioner may issue an order revoking the 
 80.1   license of that facility.  After revocation of its license, that 
 80.2   facility shall not be used until its license is renewed.  When 
 80.3   the commissioner is satisfied that satisfactory progress towards 
 80.4   substantial compliance with minimum standard is being made, the 
 80.5   commissioner may, at the request of the appropriate officials of 
 80.6   the affected facility supported by a written schedule for 
 80.7   compliance, grant an extension of time for a period not to 
 80.8   exceed one year. 
 80.9      (5) As used in this subdivision, "correctional facility" 
 80.10  means any facility, including a group home, having a residential 
 80.11  component, the primary purpose of which is to serve persons 
 80.12  placed therein by a court, court services department, parole 
 80.13  authority, or other correctional agency having dispositional 
 80.14  power over persons charged with, convicted, or adjudicated to be 
 80.15  guilty or delinquent. 
 80.16     Sec. 53.  Minnesota Statutes 1998, section 245A.04, is 
 80.17  amended by adding a subdivision to read: 
 80.18     Subd. 11.  [EDUCATION PROGRAM; ADDITIONAL REQUIREMENT.] The 
 80.19  education program offered in a residential or nonresidential 
 80.20  program, except for child care, foster care, or services for 
 80.21  adults, must be approved by the commissioner of children, 
 80.22  families, and learning before the commissioner of human services 
 80.23  may grant a license to the program. 
 80.24     Sec. 54.  Minnesota Statutes 1998, section 626.556, is 
 80.25  amended by adding a subdivision to read: 
 80.26     Subd. 3b.  [AGENCY RESPONSIBLE FOR ASSESSING OR 
 80.27  INVESTIGATING REPORTS OF MALTREATMENT.] The department of 
 80.28  children, families, and learning is the agency responsible for 
 80.29  assessing or investigating allegations of child maltreatment in 
 80.30  schools as defined in sections 120A.05, subdivisions 9, 11, and 
 80.31  13; and 124D.10. 
 80.32     Sec. 55.  Laws 1993, chapter 224, article 3, section 32, as 
 80.33  amended by Laws 1998, chapter 398, article 2, section 47, is 
 80.34  amended to read: 
 80.35     Sec. 32.  [ASL GUIDELINES.] 
 80.36     (a) In determining appropriate licensure requirements for 
 81.1   teachers of deaf and hard of hearing hard-of-hearing students 
 81.2   under Minnesota Statutes, section 125.189 122A.28, subdivision 
 81.3   1, the board of teaching shall develop the requirements 
 81.4   according to the guidelines described in this section. 
 81.5      (b) Each teacher must complete the American sign language 
 81.6   sign communication proficiency interview or a comparable 
 81.7   American sign language evaluation that the board of teaching, 
 81.8   the Minnesota association of deaf citizens, and the Minnesota 
 81.9   council for the hearing impaired accept as a means for 
 81.10  establishing the teacher's baseline level of American sign 
 81.11  language skills.  A teacher shall not be charged for this 
 81.12  evaluation. 
 81.13     (c) Each teacher must complete 60 continuing education 
 81.14  credits in American sign language, American sign language 
 81.15  linguistics, or deaf culture for every 120 continuing education 
 81.16  credits the teacher is required to complete to renew a teaching 
 81.17  license. 
 81.18     (d) In order to obtain an initial license to teach deaf and 
 81.19  hard of hearing hard-of-hearing students, or to apply for a 
 81.20  Minnesota teaching license, after being licensed to teach in 
 81.21  another state, a person must demonstrate in the sign 
 81.22  communication proficiency interview an intermediate plus level 
 81.23  of proficiency in American sign language. 
 81.24     (e) Each teacher applying to renew a teaching license must 
 81.25  take the American sign language sign communication proficiency 
 81.26  interview or a comparable American sign language evaluation 
 81.27  every five years until the teacher demonstrates a minimum, or 
 81.28  survival plus, level of proficiency in American sign language. 
 81.29     (f) A teacher working directly with students whose primary 
 81.30  language is American sign language should demonstrate at least 
 81.31  an advanced level of proficiency in American sign language.  The 
 81.32  board should not consider a minimum, or survival plus, level of 
 81.33  proficiency adequate for providing direct instruction to 
 81.34  students whose primary language is American sign language. 
 81.35     (g) To renew a teaching license, a teacher must comply with 
 81.36  paragraphs (c) and (e) in addition to other applicable board 
 82.1   requirements.  A teacher's ability to demonstrate a minimum, or 
 82.2   survival plus, level of proficiency in American sign language is 
 82.3   not a condition for renewing the teacher's license. 
 82.4      (h) A teacher who demonstrates an increased proficiency in 
 82.5   American sign language skill in the American sign language sign 
 82.6   communication proficiency interview or a comparable American 
 82.7   sign language evaluation shall receive credit toward completing 
 82.8   the requirements of paragraph (c).  The number of continuing 
 82.9   education credits the teacher receives is based on the teacher's 
 82.10  increased level of proficiency from the teacher's baseline level:
 82.11     (1) 35 continuing education credits for demonstrating an 
 82.12  intermediate level of proficiency; 
 82.13     (2) 40 continuing education credits for demonstrating an 
 82.14  intermediate plus level of proficiency; 
 82.15     (3) 45 continuing education credits for demonstrating an 
 82.16  advanced level of proficiency; 
 82.17     (4) 50 continuing education credits for demonstrating an 
 82.18  advanced plus level of proficiency; 
 82.19     (5) 55 continuing education credits for demonstrating a 
 82.20  superior level of proficiency; and 
 82.21     (6) 60 continuing education credits for demonstrating a 
 82.22  superior plus level of proficiency. 
 82.23     (i) This section shall not apply to teachers of oral/aural 
 82.24  deaf education. 
 82.25     Sec. 56.  Laws 1997, First Special Session chapter 4, 
 82.26  article 2, section 51, subdivision 29, as amended by Laws 1998, 
 82.27  chapter 398, article 2, section 52, is amended to read: 
 82.28     Subd. 29.  [FIRST GRADE PREPAREDNESS.] (a) For grants for 
 82.29  the first grade preparedness program under Minnesota Statutes, 
 82.30  section 124.2613, and for school sites that have provided a 
 82.31  full-day kindergarten option for kindergarten students enrolled 
 82.32  in fiscal years 1996 and 1997: 
 82.33       $5,000,000     .....     1998 
 82.34       $6,500,000     .....     1999 
 82.35     (b) $4,200,000 in fiscal year 1998 must be distributed 
 82.36  according to Minnesota Statutes, section 124.2613, subdivision 
 83.1   3, and $4,200,000 in fiscal year 1999 must be distributed 
 83.2   according to Minnesota Statutes, section 124D.081, subdivision 3.
 83.3      (c) $800,000 in fiscal year 1998 must be divided equally 
 83.4   among the four geographic regions defined in Minnesota Statutes, 
 83.5   section 124.2613, subdivision 3, and $800,000 in fiscal year 
 83.6   1999 must be divided equally among the four geographic regions 
 83.7   defined in Minnesota Statutes, section 124D.081, subdivision 3, 
 83.8   and must first be used to provide funding for school sites that 
 83.9   offered an optional full-day kindergarten program during the 
 83.10  1996-1997 school year, but did not receive funding for fiscal 
 83.11  year 1997 under Minnesota Statutes, section 124.2613.  To be a 
 83.12  qualified site, licensed teachers must have taught the optional 
 83.13  full-day kindergarten classes.  A district that charged a fee 
 83.14  for students participating in an optional full-day program is 
 83.15  eligible to receive the grant to provide full-day kindergarten 
 83.16  for all students as required by Minnesota Statutes, section 
 83.17  124.2613 124D.08, subdivision 4.  Districts with eligible sites 
 83.18  must apply to the commissioner of children, families, and 
 83.19  learning for a grant. 
 83.20     (c) This appropriation must first be used to fund programs 
 83.21  operating during the 1996-1997 school year under paragraph (b) 
 83.22  and Minnesota Statutes, section 124.2613.  Any remaining funds 
 83.23  may be used to expand the number of sites providing first grade 
 83.24  preparedness programs according to Minnesota Statutes, section 
 83.25  124D.081, subdivision 3. 
 83.26     (d) $1,500,000 in fiscal year 1999 shall be divided equally 
 83.27  among the four geographic regions defined in Minnesota Statutes, 
 83.28  section 124D.081, subdivision 3, and must first be used to 
 83.29  eliminate aid proration for sites qualifying under paragraphs 
 83.30  (b) and (c).  Any remaining funds may be used to expand the 
 83.31  number of sites providing first grade preparedness programs 
 83.32  according to Minnesota Statutes, section 124.2613, subdivision 3.
 83.33     Sec. 57.  Laws 1999, chapter 123, section 22, is amended to 
 83.34  read: 
 83.35     Sec. 22.  [EFFECTIVE DATE.] 
 83.36     Sections 1, 2, 5 to 18, 20, and 21 are effective July 1, 
 84.1   1999, except that the requirement under section 3 5 to provide 
 84.2   special instruction and services until the child with a 
 84.3   disability becomes 21 years old, instead of 22 years old, is 
 84.4   effective July 1, 2002.  Sections 3 and 4 are effective July 1, 
 84.5   2002.  Section 19 is effective the day following final enactment.
 84.6      Sec. 58.  [DESIGN AND IMPLEMENTATION OF UNIFORM BILLING 
 84.7   SYSTEM.] 
 84.8      The commissioner of children, families, and learning shall 
 84.9   design a uniform billing system according to Minnesota Statutes, 
 84.10  section 125A.80.  In designing a system, the commissioner shall 
 84.11  seek the input from the appropriate users of the billing system. 
 84.12     The commissioner shall implement a uniform billing system 
 84.13  for education services for children placed out of the home, 
 84.14  according to Minnesota Statutes, section 125A.80, by July 1, 
 84.15  2000.  The commissioner shall provide training to school 
 84.16  districts on the uniform billing system. 
 84.17     Sec. 59.  [RECOMMENDATIONS FOR A SYSTEM TO APPROVE 
 84.18  EDUCATION PROGRAMS SERVING CHILDREN AT CARE AND TREATMENT 
 84.19  FACILITIES.] 
 84.20     The commissioner of children, families, and learning shall 
 84.21  convene a task force to make recommendations on a system to 
 84.22  approve education programs serving children at care and 
 84.23  treatment facilities, including detention facilities.  The task 
 84.24  force shall be chaired by a representative of the department of 
 84.25  children, families, and learning and, at a minimum, must include 
 84.26  representatives from each of the following organizations:  the 
 84.27  department of human services, the department of corrections, the 
 84.28  Minnesota school boards association, the Minnesota association 
 84.29  of school administrators, Education Minnesota, association of 
 84.30  Minnesota counties, Minnesota county attorney association, 
 84.31  conference of chief judges, and the Minnesota council of child 
 84.32  caring agencies. 
 84.33     By February 1, 2000, the commissioner shall submit the task 
 84.34  force's recommendations to the education committees of the 
 84.35  legislature.  The task force sunsets on February 1, 2000.  
 84.36     Sec. 60.  [APPROPRIATIONS.] 
 85.1      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 85.2   LEARNING.] The sums indicated in this section are appropriated 
 85.3   from the general fund to the department of children, families, 
 85.4   and learning for the fiscal years designated.  
 85.5      Subd. 2.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 
 85.6   For grants to American Indian language and culture education 
 85.7   programs according to Minnesota Statutes, section 124D.81, 
 85.8   subdivision 1: 
 85.9        $730,000     .....     2000
 85.10       $730,000     .....     2001
 85.11     The 2000 appropriation includes $73,000 for 1999 and 
 85.12  $657,000 for 2000.  
 85.13     The 2001 appropriation includes $73,000 for 2000 and 
 85.14  $657,000 for 2001.  
 85.15     Any balance in the first year does not cancel but is 
 85.16  available in the second year. 
 85.17     Subd. 3.  [AMERICAN INDIAN EDUCATION.] (a) For certain 
 85.18  American Indian education programs in school districts: 
 85.19       $175,000     .....     2000
 85.20       $175,000     .....     2001
 85.21     The 2000 appropriation includes $17,000 for 1999 and 
 85.22  $158,000 for 2000.  
 85.23     The 2001 appropriation includes $17,000 for 2000 and 
 85.24  $158,000 for 2001.  
 85.25     (b) These appropriations are available for expenditure with 
 85.26  the approval of the commissioner of the department of children, 
 85.27  families, and learning. 
 85.28     (c) The commissioner must not approve the payment of any 
 85.29  amount to a school district or school under this subdivision 
 85.30  unless that school district or school is in compliance with all 
 85.31  applicable laws of this state. 
 85.32     (d) Up to the following amounts may be distributed to the 
 85.33  following schools and school districts for each fiscal year:  
 85.34  $54,800 Pine Point School; $9,800 to independent school district 
 85.35  No. 166, Cook county; $14,900 to independent school district No. 
 85.36  432, Mahnomen; $14,200 to independent school district No. 435, 
 86.1   Waubun; $42,200 to independent school district No. 707, Nett 
 86.2   Lake; and $39,100 to independent school district No. 38, Red 
 86.3   Lake.  These amounts must be spent only for the benefit of 
 86.4   American Indian pupils and to meet established state educational 
 86.5   standards or statewide requirements. 
 86.6      (e) Before a district or school can receive money under 
 86.7   this subdivision, the district or school must submit, to the 
 86.8   commissioner, evidence that it has complied with the uniform 
 86.9   financial accounting and reporting standards act, Minnesota 
 86.10  Statutes, sections 123B.75 to 123B.83. 
 86.11     Subd. 4.  [AMERICAN INDIAN POST-SECONDARY PREPARATION 
 86.12  GRANTS.] For American Indian post-secondary preparation grants 
 86.13  according to Minnesota Statutes, section 124D.85: 
 86.14       $982,000     .....     2000
 86.15       $982,000     .....     2001
 86.16     Any balance in the first year does not cancel but is 
 86.17  available in the second year. 
 86.18     Subd. 5.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
 86.19  Indian scholarships according to Minnesota Statutes, section 
 86.20  124D.84: 
 86.21       $1,875,000   .....     2000 
 86.22       $1,875,000   .....     2001 
 86.23     Any balance in the first year does not cancel but is 
 86.24  available in the second year. 
 86.25     Subd. 6.  [INDIAN TEACHER PREPARATION GRANTS.] (a) For 
 86.26  joint grants to assist Indian people to become teachers: 
 86.27       $190,000     .....     2000 
 86.28       $190,000     .....     2001 
 86.29     (b) Up to $70,000 each year is for a joint grant to the 
 86.30  University of Minnesota at Duluth and independent school 
 86.31  district No. 709, Duluth. 
 86.32     (c) Up to $40,000 each year is for a joint grant to each of 
 86.33  the following: 
 86.34     (1) Bemidji state university and independent school 
 86.35  district No. 38, Red Lake; 
 86.36     (2) Moorhead state university and a school district located 
 87.1   within the White Earth reservation; and 
 87.2      (3) Augsburg college, independent school district No. 625, 
 87.3   St. Paul, and special school district No. 1, Minneapolis. 
 87.4      (d) Money not used for students at one location may be 
 87.5   transferred for use at another location. 
 87.6      (e) Any balance in the first year does not cancel but is 
 87.7   available in the second year. 
 87.8      Subd. 7.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 87.9   school aid according to Minnesota Statutes, section 124D.83: 
 87.10       $2,706,000  .....     2000
 87.11       $2,790,000  .....     2001
 87.12     The 2000 appropriation includes $283,000 for 1999 and 
 87.13  $2,423,000 for 2000. 
 87.14     The 2001 appropriation includes $269,000 for 2000 and 
 87.15  $2,521,000 for 2001. 
 87.16     Subd. 8.  [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For 
 87.17  early childhood family education programs at tribal contract 
 87.18  schools: 
 87.19       $68,000     .....     2000 
 87.20       $68,000     .....     2001 
 87.21     Subd. 9.  [MAGNET SCHOOL GRANTS.] For magnet school and 
 87.22  program grants: 
 87.23       $1,750,000  .....     2000 
 87.24       $1,750,000  .....     2001 
 87.25     These amounts may be used for magnet school programs 
 87.26  according to Minnesota Statutes, section 124D.88. 
 87.27     Subd. 10.  [INTEGRATION PROGRAMS.] For minority fellowship 
 87.28  grants according to Laws 1994, chapter 647, article 8, section 
 87.29  29; minority teacher incentives according to Minnesota Statutes, 
 87.30  section 122A.65; teachers of color grants according to Minnesota 
 87.31  Statutes, section 122A.64; and cultural exchange grants 
 87.32  according to Minnesota Statutes, section 124D.89: 
 87.33       $1,000,000     .....     2000
 87.34       $1,000,000     .....     2001
 87.35     Any balance in the first year does not cancel but is 
 87.36  available in the second year. 
 88.1      In awarding teacher of color grants, priority must be given 
 88.2   to districts that have students who are currently in the process 
 88.3   of completing their academic program. 
 88.4      Subd. 11.  [SPECIAL EDUCATION AID.] For special education 
 88.5   aid according to Minnesota Statutes, section 125A.75: 
 88.6        $456,015,000   .....     2000 
 88.7        $472,900,000   .....     2001 
 88.8      The 2000 appropriation includes $39,300,000 for 1999 and 
 88.9   $416,715,000 for 2000.  
 88.10     The 2001 appropriation includes $46,300,000 for 2000 and 
 88.11  $426,600,000 for 2001.  
 88.12     Subd. 12.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
 88.13  according to Minnesota Statutes, section 125A.75, subdivision 3, 
 88.14  for children with a disability placed in residential facilities 
 88.15  within the district boundaries for whom no district of residence 
 88.16  can be determined: 
 88.17       $  443,000   .....     2000 
 88.18       $1,064,000   .....     2001 
 88.19     If the appropriation for either year is insufficient, the 
 88.20  appropriation for the other year is available.  Any balance in 
 88.21  the first year does not cancel but is available in the second 
 88.22  year. 
 88.23     Subd. 13.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
 88.24  teacher travel for home-based services according to Minnesota 
 88.25  Statutes, section 125A.75, subdivision 1: 
 88.26       $133,000     .....     2000 
 88.27       $139,000     .....     2001 
 88.28     The 2000 appropriation includes $11,000 for 1999 and 
 88.29  $122,000 for 2000.  
 88.30     The 2001 appropriation includes $13,000 for 2000 and 
 88.31  $126,000 for 2001.  
 88.32     Subd. 14.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
 88.33  cost aid: 
 88.34       $60,498,000    .....     2000 
 88.35       $79,405,000    .....     2001 
 88.36     The 2000 appropriation includes $4,693,000 for 1999 and 
 89.1   $55,805,000 for 2000.  
 89.2      The 2001 appropriation includes $6,200,000 for 2000 and 
 89.3   $73,205,000 for 2001. 
 89.4      Subd. 15.  [CAREER AND TECHNICAL PROGRAMS; CHILDREN WITH 
 89.5   DISABILITIES.] For aid for career and technical programs for 
 89.6   children with disabilities according to Minnesota Statutes, 
 89.7   section 124D.454: 
 89.8        $8,892,000     .....     2000 
 89.9        $8,968,000     .....     2001 
 89.10     The 2000 appropriation includes $808,000 for 1999 and 
 89.11  $8,084,000 for 2000.  
 89.12     The 2001 appropriation includes $898,000 for 2000 and 
 89.13  $8,070,000 for 2001.  
 89.14     Subd. 16.  [SPECIAL PROGRAMS EQUALIZATION AID.] For special 
 89.15  education levy equalization aid according to Minnesota Statutes, 
 89.16  section 125A.77: 
 89.17       $526,000      .....     2000
 89.18     The 2000 appropriation includes $526,000 for 1999 and $0 
 89.19  for 2000.  
 89.20     Subd. 17.  [INTEGRATION AID.] For integration aid: 
 89.21       $37,182,000   .....     2000 
 89.22       $43,787,000   .....     2001 
 89.23     The 2000 appropriation includes $2,902,000 for 1999 and 
 89.24  $34,280,000 for 2000. 
 89.25     The 2001 appropriation includes $3,809,000 for 2000 and 
 89.26  $39,978,000 for 2001.  
 89.27     Subd. 18.  [ADDITIONAL REVENUE FOR HOMELESS STUDENTS.] For 
 89.28  additional revenue for homeless students according to Minnesota 
 89.29  Statutes, section 124D.70: 
 89.30       $20,000       .....     2000
 89.31     The 2000 appropriation includes $20,000 for 1999 and $0 for 
 89.32  2000. 
 89.33     Subd. 19.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
 89.34  TRANSPORTATION AID.] For interdistrict desegregation or 
 89.35  integration transportation aid under Minnesota Statutes, section 
 89.36  124D.87: 
 90.1        $970,000       .....     2000
 90.2        $970,000       .....     2001
 90.3      Any balance in the first year does not cancel but is 
 90.4   available in the second year.  
 90.5      Subd. 20.  [ADOLESCENT PARENTING GRANTS.] For adolescent 
 90.6   parenting grants under Laws 1997, chapter 162, article 2, 
 90.7   section 28: 
 90.8        $300,000       .....     2000 
 90.9      This appropriation is available until June 30, 2001. 
 90.10     Subd. 21.  [CENTER FOR VICTIMS OF TORTURE.] For the center 
 90.11  for victims of torture to provide training, consultation, and 
 90.12  support services in public schools with significant populations 
 90.13  of traumatized refugee and immigrant students: 
 90.14       $75,000        .....     2000 
 90.15       $75,000        .....     2001 
 90.16     Any balance in the first year does not cancel but is 
 90.17  available in the second year. 
 90.18     Subd. 22.  [OUT-OF-STATE TUITION.] For out-of-state tuition 
 90.19  under Minnesota Statutes, section 125A.79, subdivision 8: 
 90.20       $250,000       .....     2001 
 90.21     If the appropriation under this section is insufficient to 
 90.22  cover the expenses submitted by districts, the commissioner 
 90.23  shall prorate the aid to districts based on the expenses 
 90.24  submitted by districts. 
 90.25     Subd. 23.  [UNIFORM BILLING SYSTEM; TECHNICAL 
 90.26  ASSISTANCE.] For implementing an effective and efficient uniform 
 90.27  billing system for the educational costs of students placed out 
 90.28  of the home: 
 90.29       $50,000        .....     2000 
 90.30     Subd. 24.  [STATE APPROVAL OF EDUCATION PROGRAMS AT CARE 
 90.31  AND TREATMENT FACILITIES.] For developing and implementing a 
 90.32  system to approve education costs of students placed out of the 
 90.33  home: 
 90.34       $50,000        .....     2000 
 90.35     This appropriation is available until June 30, 2001. 
 90.36     Subd. 25.  [FIRST-GRADE PREPAREDNESS GRANTS.] For grants 
 91.1   for the first-grade preparedness program under Minnesota 
 91.2   Statutes, section 124D.081: 
 91.3        $7,000,000     .....     2000 
 91.4        $7,000,000     .....     2001 
 91.5      For each year, the appropriation must first be used to fund 
 91.6   programs operating during the 1998-1999 school year, unless the 
 91.7   site's ranking, as determined by Minnesota Statutes, section 
 91.8   124D.081, subdivision 3, falls below the state average for 
 91.9   elementary schools.  Any remaining funds may be used to expand 
 91.10  the number of sites according to Minnesota Statutes, section 
 91.11  124D.081, subdivision 3. 
 91.12     Subd. 26.  [LITIGATION COSTS.] For paying the costs a 
 91.13  district incurs under Minnesota Statutes, section 125A.75, 
 91.14  subdivision 8: 
 91.15       $375,000     .....     2000
 91.16       $375,000     .....     2001
 91.17     Subd. 27.  [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 
 91.18  reimbursing serving school districts for unreimbursed eligible 
 91.19  expenditures attributable to children placed in the serving 
 91.20  school district by court action under Minnesota Statutes, 
 91.21  section 125A.79, subdivision 4: 
 91.22       $350,000     .....     2000 
 91.23       $350,000     .....     2001
 91.24     This appropriation is available until June 30, 2001. 
 91.25     Subd. 28.  [ROCHESTER SCHOOL DISTRICT.] For a special 
 91.26  education revenue adjustment for independent school district No. 
 91.27  535, Rochester: 
 91.28       $150,000     .....     2000 
 91.29       $ 15,000     .....     2001 
 91.30     Any balance in the first year does not cancel but is 
 91.31  available in the second year.  
 91.32     Sec. 61.  [REVISOR INSTRUCTION.] 
 91.33     In the next and subsequent editions of Minnesota Statutes 
 91.34  and Minnesota Rules, the revisor shall change all references to 
 91.35  the "Faribault academies" to the "Minnesota state academies." 
 91.36     Sec. 62.  [REPEALER.] 
 92.1      (a) Minnesota Statutes 1998, sections 124D.081, 
 92.2   subdivisions 7 and 8; 124D.65, subdivision 3; 125A.76, 
 92.3   subdivision 6; 125A.77; and 125A.79, subdivision 3, are repealed.
 92.4      (b) Minnesota Statutes 1998, section 124D.70, is repealed 
 92.5   effective July 1, 2000. 
 92.6      Sec. 63.  [EFFECTIVE DATES.] 
 92.7      Sections 8, 49, and 50 are effective the day following 
 92.8   final enactment for revenue for fiscal year 1999 and later.  
 92.9   Sections 19, 21, 22, 35, 38, 46, 52, and 53 are effective July 
 92.10  1, 2000.  Sections 20 and 23 to 34 are effective December 31, 
 92.11  1999.  Sections 36 and 56 are effective the day following final 
 92.12  enactment. 
 92.13                             ARTICLE 3 
 92.14                        LIFEWORK DEVELOPMENT 
 92.15     Section 1.  Minnesota Statutes 1998, section 124D.453, 
 92.16  subdivision 3, is amended to read: 
 92.17     Subd. 3.  [SECONDARY VOCATIONAL AID.] A district's 
 92.18  secondary vocational education aid for a fiscal year 2000 equals 
 92.19  the lesser of: 
 92.20     (a) $80 $73 times the district's average daily membership 
 92.21  in grades 10 to 12; or 
 92.22     (b) 25 percent of approved expenditures for the following: 
 92.23     (1) salaries paid to essential, licensed personnel 
 92.24  providing direct instructional services to students in that 
 92.25  fiscal year for services rendered in the district's approved 
 92.26  secondary vocational education programs; 
 92.27     (2) contracted services provided by a public or private 
 92.28  agency other than a Minnesota school district or cooperative 
 92.29  center under subdivision 7; 
 92.30     (3) necessary travel between instructional sites by 
 92.31  licensed secondary vocational education personnel; 
 92.32     (4) necessary travel by licensed secondary vocational 
 92.33  education personnel for vocational student organization 
 92.34  activities held within the state for instructional purposes; 
 92.35     (5) curriculum development activities that are part of a 
 92.36  five-year plan for improvement based on program assessment; 
 93.1      (6) necessary travel by licensed secondary vocational 
 93.2   education personnel for noncollegiate credit bearing 
 93.3   professional development; and 
 93.4      (7) specialized vocational instructional supplies. 
 93.5      (c) Up to ten percent of a district's secondary vocational 
 93.6   aid may be spent on equipment purchases.  Districts using 
 93.7   secondary vocational aid for equipment purchases must report to 
 93.8   the department on the improved learning opportunities for 
 93.9   students that result from the investment in equipment.  
 93.10     Sec. 2.  Laws 1997, First Special Session chapter 4, 
 93.11  article 3, section 25, subdivision 6, is amended to read: 
 93.12     Subd. 6.  [SOUTHWEST STAR CONCEPT SCHOOL.] For a grant to 
 93.13  independent school district No. 330, Heron Lake-Okabena, to 
 93.14  establish the Southwest Star Concept School: 
 93.15       $193,000     .....     1998
 93.16     This appropriation may be used for equipment, activities 
 93.17  beyond the classroom walls, professional planning assistance, 
 93.18  monitoring, evaluating, and reporting activities related to the 
 93.19  case study prepared in section 22. 
 93.20     This appropriation is available until June 30, 1999. 
 93.21     Sec. 3.  [APPROPRIATIONS.] 
 93.22     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 93.23  LEARNING.] The sums indicated in this section are appropriated 
 93.24  from the general fund to the department of children, families, 
 93.25  and learning for the fiscal years designated. 
 93.26     Subd. 2.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
 93.27  secondary vocational education aid according to Minnesota 
 93.28  Statutes, section 124D.453: 
 93.29       $11,335,000     .....     2000 
 93.30       $1,130,000      .....     2001 
 93.31     The 2000 appropriation includes $1,159,000 for 1999 and 
 93.32  $10,176,000 for 2000.  The 2001 appropriation includes 
 93.33  $1,130,000 for 2000.  
 93.34     Subd. 3.  [YOUTHWORKS PROGRAMS.] For funding youthworks 
 93.35  programs according to Minnesota Statutes, sections 124D.37 to 
 93.36  124D.45: 
 94.1        $1,788,000     .....     2000 
 94.2        $1,788,000     .....     2001 
 94.3      A grantee organization may provide health and child care 
 94.4   coverage to the dependents of each participant enrolled in a 
 94.5   full-time youthworks program to the extent such coverage is not 
 94.6   otherwise available. 
 94.7      Any balance in the first year does not cancel but is 
 94.8   available in the second year. 
 94.9      Subd. 4.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
 94.10  GRANTS.] For education and employment transitions programming 
 94.11  under Minnesota Statutes, section 124D.46: 
 94.12       $3,225,000     .....     2000 
 94.13       $3,225,000     .....     2001 
 94.14     $200,000 each year is for the development and 
 94.15  implementation of the ISEEK Internet-based education and 
 94.16  employment information system. 
 94.17     $1,000,000 each year is for an employer rebate program for 
 94.18  qualifying employers who offer youth internships to educators. 
 94.19     $500,000 each year is for youth entrepreneurship grants.  
 94.20     $750,000 each year is for youth apprenticeship grants. 
 94.21     $300,000 each year is for grants to programs in cities of 
 94.22  the first class to expand the number of at-risk students 
 94.23  participating in school-to-work projects. 
 94.24     $350,000 each year is for agricultural school-to-work 
 94.25  grants. 
 94.26     $125,000 each year is to conduct a high school follow-up 
 94.27  survey to include first, third, and sixth year graduates of 
 94.28  Minnesota schools. 
 94.29     Subd. 5.  [LEARN AND EARN GRADUATION ACHIEVEMENT 
 94.30  PROGRAM.] For the learn and earn graduation achievement program 
 94.31  under Minnesota Statutes, section 124D.32: 
 94.32       $  725,000     .....     2000 
 94.33       $  725,000     .....     2001 
 94.34     This appropriation is available until June 30, 2001. 
 94.35     Subd. 6.  [MINNESOTA SCHOOL-TO-WORK STUDENT ORGANIZATION 
 94.36  FOUNDATION.] For the Minnesota school-to-work student 
 95.1   organization foundation under Minnesota Statutes, section 
 95.2   124D.34: 
 95.3        $  625,000     .....     2000 
 95.4        $  625,000     .....     2001 
 95.5      Any balance in the first year does not cancel but is 
 95.6   available in the second year. 
 95.7      Sec. 4.  [REVISOR INSTRUCTION.] 
 95.8      In the next and subsequent editions of Minnesota Statutes 
 95.9   the revisor shall: 
 95.10     (1) in Minnesota Statutes, section 124D.34, subdivisions 2 
 95.11  and 3, change all references to "Minnesota school-to-work 
 95.12  student organization foundation" to "Minnesota Foundation for 
 95.13  Student Organizations"; 
 95.14     (2) in Minnesota Statutes, sections 124D.34 and 124D.453, 
 95.15  change all references to "secondary vocational" to "career and 
 95.16  technical"; 
 95.17     (3) in Minnesota Statutes, section 124D.454, change all 
 95.18  references to "school-to-work" to "transition." 
 95.19     Sec. 5.  [REPEALER.] 
 95.20     Minnesota Statutes 1998, section 124D.453, is repealed 
 95.21  effective for revenue for fiscal year 2001. 
 95.22     Sec. 6.  [EFFECTIVE DATE.] 
 95.23     Section 2 is effective retroactive to July 1, 1997. 
 95.24                             ARTICLE 4 
 95.25                     FACILITIES AND TECHNOLOGY 
 95.26     Section 1.  Minnesota Statutes 1998, section 123B.53, 
 95.27  subdivision 2, is amended to read: 
 95.28     Subd. 2.  [ELIGIBILITY.] (a) The following portions of a 
 95.29  district's debt service levy qualify for debt service 
 95.30  equalization: 
 95.31     (1) debt service for repayment of principal and interest on 
 95.32  bonds issued before July 2, 1992; 
 95.33     (2) debt service for bonds refinanced after July 1, 1992, 
 95.34  if the bond schedule has been approved by the commissioner and, 
 95.35  if necessary, adjusted to reflect a 20-year maturity schedule; 
 95.36  and 
 96.1      (3) debt service for bonds issued after July 1, 1992, for 
 96.2   construction projects that have received a positive review and 
 96.3   comment according to section 123B.71, if the commissioner has 
 96.4   determined that the district has met the criteria under section 
 96.5   126C.69, subdivision 3, except section 126C.69, subdivision 3, 
 96.6   paragraph (a), clause (2), and if the bond schedule has been 
 96.7   approved by the commissioner and, if necessary, adjusted to 
 96.8   reflect a 20-year maturity schedule. 
 96.9      (b) The criterion in section 126C.69, subdivision 3, 
 96.10  paragraph (a), clause (2), shall be considered to have been met 
 96.11  if the district in the fiscal year in which the bonds are 
 96.12  authorized at an election conducted under chapter 475: 
 96.13     (i) if grades 9 through 12 are to be served by the 
 96.14  facility, and an average of at least 66 pupils per grade in 
 96.15  these grades are served; or 
 96.16     (ii) is eligible for elementary or secondary sparsity 
 96.17  revenue. 
 96.18     (c) The criterion in section 126C.69, subdivision 3, 
 96.19  paragraph (a), clause (2), shall also be considered to have been 
 96.20  met if the construction project under review serves students in 
 96.21  kindergarten to grade 8.  Only the debt service levy for that 
 96.22  portion of the facility serving students in prekindergarten to 
 96.23  grade 8, as determined by the commissioner, shall be eligible 
 96.24  for debt service equalization under this paragraph. 
 96.25     (d) The criterion described in section 126C.69, subdivision 
 96.26  3, paragraph (a), clause (9), does not apply to bonds authorized 
 96.27  by elections held before July 1, 1992. 
 96.28     (e) (c) For the purpose of this subdivision the department 
 96.29  shall determine the eligibility for sparsity at the location of 
 96.30  the new facility, or the site of the new facility closest to the 
 96.31  nearest operating school if there is more than one new facility. 
 96.32     (f) (d) Notwithstanding paragraphs (a) to (e) (c), debt 
 96.33  service for repayment of principal and interest on bonds issued 
 96.34  after July 1, 1997, does not qualify for debt service 
 96.35  equalization aid unless the primary purpose of the facility is 
 96.36  to serve students in kindergarten through grade 12. 
 97.1      Sec. 2.  Minnesota Statutes 1998, section 123B.53, 
 97.2   subdivision 4, is amended to read: 
 97.3      Subd. 4.  [DEBT SERVICE EQUALIZATION REVENUE.] (a) For 
 97.4   fiscal years 1995 and later, The debt service equalization 
 97.5   revenue of a district equals the eligible debt service revenue 
 97.6   minus the amount raised by a levy of ten 12 percent times the 
 97.7   adjusted net tax capacity of the district. 
 97.8      (b) For fiscal year 1993, debt service equalization revenue 
 97.9   equals one-third of the amount calculated in paragraph (a). 
 97.10     (c) For fiscal year 1994, debt service equalization revenue 
 97.11  equals two-thirds of the amount calculated in paragraph (a). 
 97.12     Sec. 3.  Minnesota Statutes 1998, section 123B.53, 
 97.13  subdivision 5, is amended to read: 
 97.14     Subd. 5.  [EQUALIZED DEBT SERVICE LEVY.] To obtain debt 
 97.15  service equalization revenue, a district must levy an amount not 
 97.16  to exceed the district's debt service equalization revenue times 
 97.17  the lesser of one or the ratio of: 
 97.18     (1) the quotient derived by dividing the adjusted net tax 
 97.19  capacity of the district for the year before the year the levy 
 97.20  is certified by the resident adjusted pupil units in the 
 97.21  district for the school year ending in the year prior to the 
 97.22  year the levy is certified; to 
 97.23     (2) $4,707.50 $4,000. 
 97.24     Sec. 4.  Minnesota Statutes 1998, section 123B.53, 
 97.25  subdivision 6, is amended to read: 
 97.26     Subd. 6.  [DEBT SERVICE EQUALIZATION AID.] A district's 
 97.27  debt service equalization aid is the difference between the debt 
 97.28  service equalization revenue and the equalized debt service levy.
 97.29  If the amount of debt service equalization aid actually 
 97.30  appropriated for the fiscal year in which this calculation is 
 97.31  made is insufficient to fully fund debt service equalization 
 97.32  aid, the commissioner shall prorate the amount of aid across all 
 97.33  eligible districts. 
 97.34     Sec. 5.  Minnesota Statutes 1998, section 123B.53, 
 97.35  subdivision 7, is amended to read: 
 97.36     Subd. 7.  [DEBT SERVICE EQUALIZATION AID PAYMENT SCHEDULE.] 
 98.1   Debt service equalization aid must be paid as follows:  30 
 98.2   percent before September 15, 30 percent before December 15, 30 
 98.3   percent before March 15, and a final payment of ten percent by 
 98.4   July 15 of the subsequent fiscal year according to section 
 98.5   127A.45, subdivision 10. 
 98.6      Sec. 6.  Minnesota Statutes 1998, section 123B.54, is 
 98.7   amended to read: 
 98.8      123B.54 [DEBT SERVICE APPROPRIATION.] 
 98.9      (a) $35,480,000 $33,165,000 in fiscal year 
 98.10  1998 2000, $38,159,000 $32,057,000 in fiscal year 1999 2001, 
 98.11  and $38,390,000 $31,280,000 in fiscal year 2000 2002 and each 
 98.12  year thereafter is appropriated from the general fund to the 
 98.13  commissioner of children, families, and learning for payment of 
 98.14  debt service equalization aid under section 123B.53.  The 2000 
 98.15  2002 appropriation includes $3,842,000 $3,201,000 for 1999 
 98.16  2001 and $34,548,000 $29,079,000 for 2000 2002. 
 98.17     (b) The appropriations in paragraph (a) must be reduced by 
 98.18  the amount of any money specifically appropriated for the same 
 98.19  purpose in any year from any state fund. 
 98.20     Sec. 7.  Minnesota Statutes 1998, section 123B.57, 
 98.21  subdivision 4, is amended to read: 
 98.22     Subd. 4.  [HEALTH AND SAFETY LEVY.] To receive health and 
 98.23  safety revenue, a district may levy an amount equal to the 
 98.24  district's health and safety revenue as defined in subdivision 3 
 98.25  multiplied by the lesser of one, or the ratio of the quotient 
 98.26  derived by dividing the adjusted net tax capacity of the 
 98.27  district for the year preceding the year the levy is certified 
 98.28  by the resident adjusted marginal cost pupil units in the 
 98.29  district for the school year to which the levy is attributable, 
 98.30  to $4,707.50 $3,956. 
 98.31     Sec. 8.  Minnesota Statutes 1998, section 123B.59, 
 98.32  subdivision 1, is amended to read: 
 98.33     Subdivision 1.  [TO QUALIFY.] An independent or special 
 98.34  school district qualifies to participate in the alternative 
 98.35  facilities bonding and levy program if the district has: 
 98.36     (1) more than 66 students per grade; 
 99.1      (2) over 1,850,000 square feet of space; 
 99.2      (3) average age of building space is 20 15 years or older; 
 99.3      (4) insufficient funds from projected health and safety 
 99.4   revenue and capital facilities revenue to meet the requirements 
 99.5   for deferred maintenance, to make accessibility improvements, or 
 99.6   to make fire, safety, or health repairs; and 
 99.7      (5) a ten-year facility plan approved by the commissioner 
 99.8   according to subdivision 2. 
 99.9      Sec. 9.  Minnesota Statutes 1998, section 123B.61, is 
 99.10  amended to read: 
 99.11     123B.61 [PURCHASE OF CERTAIN EQUIPMENT.] 
 99.12     The board of a district may issue general obligation 
 99.13  certificates of indebtedness or capital notes subject to the 
 99.14  district debt limits to purchase:  (a) purchase vehicles, 
 99.15  computers, telephone systems, cable equipment, photocopy and 
 99.16  office equipment, technological equipment for instruction, and 
 99.17  other capital equipment having an expected useful life at least 
 99.18  as long as the terms of the certificates or 
 99.19  notes; and (b) purchase computer hardware and software, without 
 99.20  regard to its expected useful life, whether bundled with 
 99.21  machinery or equipment or unbundled, together with application 
 99.22  development services and training related to the use of the 
 99.23  computer; and (c) prepay special assessments.  The certificates 
 99.24  or notes must be payable in not more than five years and must be 
 99.25  issued on the terms and in the manner determined by the board, 
 99.26  except that certificates or notes issued to prepay special 
 99.27  assessments must be payable in not more than 20 years.  The 
 99.28  certificates or notes may be issued by resolution and without 
 99.29  the requirement for an election.  The certificates or notes are 
 99.30  general obligation bonds for purposes of section 126C.55.  A tax 
 99.31  levy must be made for the payment of the principal and interest 
 99.32  on the certificates or notes, in accordance with section 475.61, 
 99.33  as in the case of bonds.  The sum of the tax levies under this 
 99.34  section and section 123B.62 for each year must not exceed the 
 99.35  amount of the district's total operating capital revenue for the 
 99.36  year the initial debt service levies are certified.  The 
100.1   district's general education levy for each year must be reduced 
100.2   by the sum of (1) the amount of the tax levies for debt service 
100.3   certified for each year for payment of the principal and 
100.4   interest on the certificates or notes as required by section 
100.5   475.61, and (2) any excess amount in the debt redemption fund 
100.6   used to retire certificates or notes issued after April 1, 1997, 
100.7   other than amounts used to pay capitalized interest.  A district 
100.8   using an excess amount in the debt redemption fund to retire the 
100.9   certificates or notes shall report the amount used for this 
100.10  purpose to the commissioner by July 15 of the following fiscal 
100.11  year.  A district having an outstanding capital loan under 
100.12  section 126C.69 or an outstanding debt service loan under 
100.13  section 126C.68 must not use an excess amount in the debt 
100.14  redemption fund to retire the certificates or notes. 
100.15     Sec. 10.  Minnesota Statutes 1998, section 124D.88, 
100.16  subdivision 3, is amended to read: 
100.17     Subd. 3.  [GRANT APPLICATION PROCESS.] (a) Any group of 
100.18  school districts that meets the criteria required under 
100.19  paragraph (b)(i)(1) may apply for a magnet school grant in an 
100.20  amount not to exceed $15,000,000 $20,800,000 for the approved 
100.21  costs or expansion of a magnet school facility. 
100.22     (b)(i)(1) Any group of districts that submits an 
100.23  application for a grant shall submit a proposal to the 
100.24  commissioner for review and comment under section 123B.71, and 
100.25  the commissioner shall prepare a review and comment on the 
100.26  proposed magnet school facility, regardless of the amount of the 
100.27  capital expenditure required to design, acquire, construct, 
100.28  remodel, improve, furnish, or equip the facility.  The 
100.29  commissioner must not approve an application for a magnet school 
100.30  grant for any facility unless the facility receives a favorable 
100.31  review and comment under section 123B.71 and the participating 
100.32  districts: 
100.33     (1) (i) establish a joint powers board under section 471.59 
100.34  to represent all participating districts and govern the magnet 
100.35  school facility; 
100.36     (2) (ii) design the planned magnet school facility to meet 
101.1   the applicable requirements contained in Minnesota Rules, 
101.2   chapter 3535; 
101.3      (3) (iii) submit a statement of need, including reasons why 
101.4   the magnet school will facilitate integration and improve 
101.5   learning; 
101.6      (4) (iv) prepare an educational plan that includes input 
101.7   from both community and professional staff; and 
101.8      (5) (v) develop an education program that will improve 
101.9   learning opportunities for students attending the magnet school. 
101.10     (ii) (2) The districts may develop a plan that permits 
101.11  social service, health, and other programs serving students and 
101.12  community residents to be located within the magnet school 
101.13  facility.  The commissioner shall consider this plan when 
101.14  preparing a review and comment on the proposed facility.  
101.15     (c) When two or more districts enter into an agreement 
101.16  establishing a joint powers board to govern the magnet school 
101.17  facility, all member districts shall have the same powers.  
101.18     (d) A joint powers board of participating school districts 
101.19  established under paragraphs (b) and (c) that intends to apply 
101.20  for a grant must adopt a resolution stating the costs of the 
101.21  proposed project, the purpose for which the debt is to be 
101.22  incurred, and an estimate of the dates when the contracts for 
101.23  the proposed project will be completed.  A copy of the 
101.24  resolution must accompany any application for a state grant 
101.25  under this section. 
101.26     (e)(i)(1) The commissioner shall examine and consider all 
101.27  grant applications.  If the commissioner finds that any joint 
101.28  powers district is not a qualified grant applicant, the 
101.29  commissioner shall promptly notify that joint powers board.  The 
101.30  commissioner shall make awards to no more than two qualified 
101.31  applicants whose applications have been on file with the 
101.32  commissioner more than 30 days.  
101.33     (ii) (2) A grant award is subject to verification by the 
101.34  joint powers board under paragraph (f).  A grant award must not 
101.35  be made until the participating districts determine the site of 
101.36  the magnet school facility.  If the total amount of the approved 
102.1   applications exceeds the amount of grant funding that is or can 
102.2   be made available, the commissioner shall allot the available 
102.3   amount equally between the approved applicant districts.  The 
102.4   commissioner shall promptly certify to each qualified joint 
102.5   powers board the amount, if any, of the grant awarded to it. 
102.6      (f) Each grant must be evidenced by a contract between the 
102.7   joint powers board and the state acting through the 
102.8   commissioner.  The contract obligates the state to pay to the 
102.9   joint powers board an amount computed according to paragraph 
102.10  (e)(ii)(2) and a schedule, and terms and conditions acceptable 
102.11  to the commissioner of finance. 
102.12     (g) Notwithstanding the provisions of section 123B.02, 
102.13  subdivision 3, the joint powers and its individual members may 
102.14  enter into long-term lease agreements as part of the magnet 
102.15  school program.  
102.16     Sec. 11.  Minnesota Statutes 1998, section 125B.20, is 
102.17  amended to read: 
102.18     125B.20 [TELECOMMUNICATION ACCESS GRANT AND STATEWIDE 
102.19  COORDINATION.] 
102.20     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] The purpose of 
102.21  developing a statewide school district telecommunications 
102.22  network is to expand the availability of a broad range of 
102.23  courses and degrees to students throughout the state, to share 
102.24  information resources to improve access, quality, and 
102.25  efficiency, to improve learning, and distance cooperative 
102.26  learning opportunities, and to promote the exchange of ideas 
102.27  among students, parents, teachers, media generalists, 
102.28  librarians, and the public.  In addition, through the 
102.29  development of this statewide telecommunications network 
102.30  emphasizing cost-effective, competitive connections, all 
102.31  Minnesotans will benefit by enhancing access to 
102.32  telecommunications technology throughout the state.  Network 
102.33  connections for school districts and public libraries will be 
102.34  are coordinated and fully integrated into the existing state 
102.35  telecommunications and interactive television networks to 
102.36  achieve comprehensive and efficient interconnectivity of school 
103.1   districts and libraries to higher education institutions, state 
103.2   agencies, other governmental units, agencies, and institutions 
103.3   throughout Minnesota.  A school district may apply to the 
103.4   commissioner for a grant under subdivision 2, and a regional 
103.5   public library may apply under subdivision 3.  The Minnesota 
103.6   education telecommunication council established in Laws 1995, 
103.7   First Special Session chapter 3, article 12, section 7, shall 
103.8   establish priorities for awarding grants, making grant awards, 
103.9   and being responsible for the coordination of networks. 
103.10     Subd. 2.  [SCHOOL DISTRICT TELECOMMUNICATIONS GRANT.] (a) 
103.11  Priority will be given to a school district that has not 
103.12  received access to interactive video, data connection, or both 
103.13  under the telecommunications access grant program.  Districts 
103.14  may apply for a grant under this subdivision to:  (1) establish 
103.15  connections among school districts, and between school districts 
103.16  and the state information infrastructure administered by the 
103.17  department of administration under section 16B.465; or (2) if 
103.18  such a connection meeting minimum electronic connectivity 
103.19  standards is already established, enhance telecommunications 
103.20  capacity for a school district.  The minimum standards of 
103.21  capacity are a 56 kilobyte data line and 768 kilobyte ITV 
103.22  connection, subject to change based on the recommendations by 
103.23  the Minnesota education telecommunications council.  A district 
103.24  may submit a grant application for interactive television with 
103.25  higher capacity connections in order to maintain multiple 
103.26  simultaneous connections.  To ensure coordination among school 
103.27  districts, a school district must submit its grant application 
103.28  to the council through an organization that coordinates the 
103.29  applications and connections of at least ten school districts or 
103.30  through an existing technology cooperative the 
103.31  telecommunications access grant cluster of which the district is 
103.32  a member.  
103.33     (b) The application must, at a minimum, contain information 
103.34  to document for each applicant school district the following: 
103.35     (1) that the proposed connection meets the minimum 
103.36  standards and employs an open network architecture that will 
104.1   ensure interconnectivity and interoperability with other 
104.2   education institutions and libraries; 
104.3      (2) that the proposed connection and system will be 
104.4   connected to the state information infrastructure through the 
104.5   department of administration under section 16B.465 and that a 
104.6   network service and management agreement is in place; 
104.7      (3) that the proposed connection and system will be 
104.8   connected to the higher education telecommunication network and 
104.9   that a governance agreement has been adopted which includes 
104.10  agreements between the school district system, a higher 
104.11  education regional council, libraries, and coordinating 
104.12  entities; 
104.13     (4) the telecommunication vendor selected to provide 
104.14  service from the district to a state information infrastructure 
104.15  hub or to a more cost-effective connection point to the state 
104.16  information infrastructure; and 
104.17     (5) other information, as determined by the commissioner in 
104.18  consultation with the education telecommunications council, to 
104.19  ensure that connections are coordinated, meet state standards 
104.20  and are cost-effective, and that service is provided in an 
104.21  efficient and cost-effective manner. 
104.22     (c) A school district may include, in its grant 
104.23  application, telecommunications access for collaboration with 
104.24  nonprofit arts organizations for the purpose of educational 
104.25  programs, or access for a secondary media center that:  (1) is a 
104.26  member of a multitype library system; (2) is open during periods 
104.27  of the year when classroom instruction is occurring; and (3) has 
104.28  licensed school media staff on site. 
104.29     (d) The Minnesota education telecommunications council 
104.30  shall award grants and the funds shall be dispersed by the 
104.31  commissioner.  The highest priority for these grants shall be to 
104.32  bring school districts up to the minimum connectivity standards. 
104.33  A grant to enhance telecommunications capacity beyond the 
104.34  minimum connectivity standards shall be no more than 75 percent 
104.35  of the maximum grant under this subdivision.  Grant applications 
104.36  for minimum connection and enhanced telecommunications capacity 
105.1   grants must be submitted to the commissioner by a coordinating 
105.2   organization including, but not limited to, service cooperatives 
105.3   and education districts.  Grant applications must be submitted 
105.4   to the commissioner by a telecommunications access grant cluster 
105.5   organization.  For the purposes of the grant, a school district 
105.6   may include a charter school under section 124D.10, or the 
105.7   Faribault academies.  Based on the award made by the council, 
105.8   all grants under this subdivision shall be paid by the 
105.9   commissioner directly to a school district (unless this 
105.10  application requests that the funds be paid to the coordinating 
105.11  agency).  Nonpublic schools as defined in section 237.065, 
105.12  subdivision 2, located within the district may access the 
105.13  network.  The nonpublic school is responsible for actual costs 
105.14  for connection from the school to the access site. 
105.15     (e) Money awarded under this section may be used only for 
105.16  the purposes explicitly stated in the grant application. 
105.17     Subd. 3.  [REGIONAL LIBRARY TELECOMMUNICATION GRANT.] (a) A 
105.18  regional public library system may apply for a telecommunication 
105.19  access grant.  Priority will be given to public libraries that 
105.20  have not received access to data connection under the 
105.21  telecommunications access grant program.  The grant must be used 
105.22  to create or expand the capacity of electronic data access and 
105.23  connect the library system with the state information 
105.24  infrastructure administered by the department of administration 
105.25  under section 16B.465.  Connections must meet minimum system 
105.26  standards of a 56 kilobyte data line and 768 kilobyte ITV 
105.27  connection.  To be eligible for a telecommunications access 
105.28  grant, a regional public library system must:  (1) meet the 
105.29  level of local support required under section 134.34; and (2) be 
105.30  open at least 20 hours per week. 
105.31     (b) Any grant award under this subdivision may not be used 
105.32  to substitute for any existing local funds allocated to provide 
105.33  electronic access, or equipment for library staff or the public, 
105.34  or local funds previously dedicated to other library operations. 
105.35     (c) An application for a regional public library 
105.36  telecommunications access grant must, at a minimum, contain 
106.1   information to document the following: 
106.2      (1) that the connection meets the minimum standards and 
106.3   employs an open network architecture that will ensure 
106.4   interconnectivity and interoperability with other libraries and 
106.5   the educational system; 
106.6      (2) that the connection is being established through the 
106.7   most cost-effective means and that the public library has 
106.8   explored and coordinated connections through school districts or 
106.9   other governmental agencies; 
106.10     (3) that the proposed connection and system will be 
106.11  connected to the state information infrastructure through the 
106.12  department of administration under section 16B.465 and that a 
106.13  network service and management agreement is in place; 
106.14     (4) that the proposed connection and system will be 
106.15  connected to the higher education and to the school district 
106.16  telecommunication networks subject to a governance agreement 
106.17  with one or more school districts and a higher education 
106.18  regional council specifying how the system will be coordinated; 
106.19     (5) the telecommunication vendor selected to provide 
106.20  service from the library to a state information infrastructure 
106.21  hub or through a more cost-effective connection point to the 
106.22  state information infrastructure; and 
106.23     (6) other information, as determined by the commissioner, 
106.24  to ensure that connections are coordinated, meet state 
106.25  standards, are cost-effective, and that service is provided in 
106.26  an efficient and cost-effective manner so that libraries 
106.27  throughout the state are connected in as seamless a manner as 
106.28  technically possible. 
106.29     Subd. 4.  [AWARD OF GRANTS.] The council shall develop 
106.30  application forms and procedures for school district minimum 
106.31  connectivity grants, enhanced telecommunications grants, and 
106.32  regional library telecommunication access grants.  The council 
106.33  shall select the grant recipient and shall promptly notify any 
106.34  applicant that is found not to be qualified.  The commissioner 
106.35  shall make the grant payments directly to the school district or 
106.36  regional library system.  At the request of the district or 
107.1   regional library system, the commissioner may make the grant 
107.2   payment directly to the coordinating organization.  If 
107.3   appropriations are insufficient to fund all applications, the 
107.4   commissioner shall first fully fund the minimum connectivity 
107.5   grants.  Unsuccessful applicants may reapply for a grant. 
107.6      Subd. 5.  [E-RATES.] The telecommunication access grant 
107.7   clusters are required to file e-rate applications for 
107.8   telecommunication access grant-related expenditures on behalf of 
107.9   grant participants in their clusters.  Discounts received on 
107.10  telecommunication access grant expenditures shall be used to 
107.11  offset or reduce operations funding provided by the state. 
107.12     Sec. 12.  Minnesota Statutes 1998, section 126C.40, 
107.13  subdivision 4, is amended to read: 
107.14     Subd. 4.  [INTERACTIVE TELEVISION.] (a) A district with its 
107.15  central administrative office located within economic 
107.16  development region one, two, three, four, five, six, seven, 
107.17  eight, nine, and ten may apply to the commissioner for ITV 
107.18  revenue up to the greater of .5 .6 percent of the adjusted net 
107.19  tax capacity of the district or $25,000.  Eligible interactive 
107.20  television expenditures include the construction, maintenance, 
107.21  and lease costs of an interactive television system for 
107.22  instructional purposes.  An eligible school district that has 
107.23  completed the construction of its interactive television system 
107.24  may also purchase computer hardware and software used primarily 
107.25  for instructional purposes and access to the Internet provided 
107.26  that its total expenditures for interactive television 
107.27  maintenance and lease costs and for computer hardware and 
107.28  software under this subdivision do not exceed its interactive 
107.29  television revenue for fiscal year 1998.  The approval by the 
107.30  commissioner and the application procedures set forth in 
107.31  subdivision 1 shall apply to the revenue in this subdivision.  
107.32  In granting the approval, the commissioner shall consider 
107.33  whether the district is maximizing efficiency through peak use 
107.34  and off-peak use pricing structures. 
107.35     (b) To obtain ITV revenue, a district may levy an amount 
107.36  not to exceed the district's ITV revenue times the lesser of one 
108.1   or the ratio of: 
108.2      (1) the quotient derived by dividing the adjusted net tax 
108.3   capacity of the district for the year before the year the levy 
108.4   is certified by the resident adjusted marginal cost pupil units 
108.5   in the district for the year to which the levy is attributable; 
108.6   to 
108.7      (2) $10,000 $8,404.  
108.8      (c) A district's ITV aid is the difference between its ITV 
108.9   revenue and the ITV levy. 
108.10     (d) The revenue in the first year after reorganization for 
108.11  a district that has reorganized under sections 123A.35 to 
108.12  123A.41, 123A.46, or 123A.48 shall be the greater of: 
108.13     (1) the revenue computed for the reorganized district under 
108.14  paragraph (a), or 
108.15     (2)(i) for two districts that reorganized, 75 percent of 
108.16  the revenue computed as if the districts involved in the 
108.17  reorganization were separate, or 
108.18     (ii) for three or more districts that reorganized, 50 
108.19  percent of the revenue computed as if the districts involved in 
108.20  the reorganization were separate. 
108.21     (e) The revenue in paragraph (d) is increased by the 
108.22  difference between the initial revenue and ITV lease costs for 
108.23  leases that had been entered into by the preexisting districts 
108.24  on the effective date of the consolidation or combination and 
108.25  with a term not exceeding ten years.  This increased revenue is 
108.26  only available for the remaining term of the lease.  However, in 
108.27  no case shall the revenue exceed the amount available had the 
108.28  preexisting districts received revenue separately. 
108.29     (f) Effective for fiscal year 2000, the revenue under this 
108.30  section shall be 75 percent of the amount determined in 
108.31  paragraph (a); for fiscal year 2001, 50 percent of the amount in 
108.32  paragraph (a); and for fiscal year 2002, 25 percent of the 
108.33  amount in paragraph (a). 
108.34     (g) This section subdivision expires effective for revenue 
108.35  for fiscal year 2003, or when leases in existence on the 
108.36  effective date of Laws 1997, First Special Session chapter 4, 
109.1   expire.  
109.2      Sec. 13.  Minnesota Statutes 1998, section 126C.55, is 
109.3   amended by adding a subdivision to read: 
109.4      Subd. 10.  [CONTINUING DISCLOSURE AGREEMENTS.] The 
109.5   commissioner of finance may enter into written agreements or 
109.6   contracts relating to the continuing disclosure of information 
109.7   needed to facilitate the ability of school districts to issue 
109.8   debt obligations according to federal securities laws, rules, 
109.9   and regulations, including securities and exchange commission 
109.10  rules and regulations, section 240.15c2-12.  Such agreements or 
109.11  contracts may be in any form the commissioner of finance deems 
109.12  reasonable and in the state's best interests. 
109.13     Sec. 14.  Minnesota Statutes 1998, section 126C.63, 
109.14  subdivision 5, is amended to read: 
109.15     Subd. 5.  [LEVY.] "Levy" means a district's net debt 
109.16  service levy after the reduction of debt service equalization 
109.17  aid under section 123B.53, subdivision 6.  For taxes payable in 
109.18  1994 and later, each district's maximum effort debt service levy 
109.19  for purposes of subdivision 8, must be reduced by an equal 
109.20  number of percentage points if the commissioner determines that 
109.21  the levy reduction will not result in a statewide property tax 
109.22  as would be required under Minnesota Statutes 1992, section 
109.23  124.46, subdivision 3.  A district's levy that is adjusted under 
109.24  this section must not be reduced below 18.74 22.3 percent of the 
109.25  district's adjusted net tax capacity. 
109.26     Sec. 15.  Minnesota Statutes 1998, section 126C.63, 
109.27  subdivision 8, is amended to read: 
109.28     Subd. 8.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 
109.29  effort debt service levy" means the lesser of: 
109.30     (1) a levy in whichever of the following amounts is 
109.31  applicable: 
109.32     (a) in any district receiving a debt service loan for a 
109.33  debt service levy payable in 1991 and thereafter, or granted a 
109.34  capital loan after January 1, 1990, a levy in a total dollar 
109.35  amount computed at a rate of 20 24 percent of adjusted net tax 
109.36  capacity for taxes payable in 1991 and thereafter; 
110.1      (b) in any district granted a debt service loan after July 
110.2   31, 1981, or granted a capital loan which is approved after July 
110.3   31, 1981, a levy in a total dollar amount computed as a tax rate 
110.4   of 13.08 percent on the adjusted gross tax capacity for taxes 
110.5   payable in 1990 or a tax rate of 18.42 21.92 percent on the 
110.6   adjusted net tax capacity for taxes payable in 1991 and 
110.7   thereafter; 
110.8      (c) in any district granted a debt service loan before 
110.9   August 1, 1981, or granted a capital loan which was approved 
110.10  before August 1, 1981, a levy in a total dollar amount computed 
110.11  as a tax rate of 12.26 percent on the adjusted gross tax 
110.12  capacity for taxes payable in 1990 or a tax rate of 17.17 
110.13  percent on the adjusted net tax capacity for taxes payable in 
110.14  1991 and thereafter, until and unless the district receives an 
110.15  additional loan; or 
110.16     (2) a levy in whichever of the following amounts is 
110.17  applicable: 
110.18     (a) in any district which received a debt service or 
110.19  capital loan from the state before January 1, 1965, a levy in a 
110.20  total dollar amount computed as 4.10 mills on the market value 
110.21  in each year, unless the district applies or has applied for an 
110.22  additional loan subsequent to January 1, 1965, or issues or has 
110.23  issued bonds on the public market, other than bonds refunding 
110.24  state loans, subsequent to January 1, 1967; 
110.25     (b) in any district granted a debt service or capital loan 
110.26  between January 1, 1965, and July 1, 1969, a levy in a total 
110.27  dollar amount computed as 5-1/2 mills on the market value in 
110.28  each year, until and unless the district receives an additional 
110.29  loan; 
110.30     (c) in any district granted a debt service or capital loan 
110.31  between July 1, 1969, and July 1, 1975, a levy in a total dollar 
110.32  amount computed as 6.3 mills on market value in each year until 
110.33  and unless the district has received an additional loan; 
110.34     (d) in any district for which a capital loan was approved 
110.35  prior to August 1, 1981, a levy in a total dollar amount equal 
110.36  to the sum of the amount of the required debt service levy and 
111.1   an amount which when levied annually will in the opinion of the 
111.2   commissioner be sufficient to retire the remaining interest and 
111.3   principal on any outstanding loans from the state within 30 
111.4   years of the original date when the capital loan was granted.  
111.5      The board in any district affected by the provisions of 
111.6   clause (2)(d) may elect instead to determine the amount of its 
111.7   levy according to the provisions of clause (1).  If a district's 
111.8   capital loan is not paid within 30 years because it elects to 
111.9   determine the amount of its levy according to the provisions of 
111.10  clause (2)(d), the liability of the district for the amount of 
111.11  the difference between the amount it levied under clause (2)(d) 
111.12  and the amount it would have levied under clause (1), and for 
111.13  interest on the amount of that difference, must not be satisfied 
111.14  and discharged pursuant to Minnesota Statutes 1988, or an 
111.15  earlier edition of Minnesota Statutes if applicable, section 
111.16  124.43, subdivision 4. 
111.17     Sec. 16.  Minnesota Statutes 1998, section 126C.69, 
111.18  subdivision 2, is amended to read: 
111.19     Subd. 2.  [CAPITAL LOANS ELIGIBILITY.] Beginning July 
111.20  1, 1992 1999, a district is not eligible for a capital loan 
111.21  unless the district's estimated net debt tax rate as computed by 
111.22  the commissioner after debt service equalization aid would be 
111.23  more than 20 24 percent of adjusted net tax capacity.  The 
111.24  estimate must assume a 20-year maturity schedule for new debt. 
111.25     Sec. 17.  Minnesota Statutes 1998, section 126C.69, 
111.26  subdivision 9, is amended to read: 
111.27     Subd. 9.  [LOAN AMOUNT LIMITS.] (a) A loan must not be 
111.28  recommended for approval for a district exceeding an amount 
111.29  computed as follows: 
111.30     (1) the amount requested by the district under subdivision 
111.31  6; 
111.32     (2) plus the aggregate principal amount of general 
111.33  obligation bonds of the district outstanding on June 30 of the 
111.34  year following the year the application was received, not 
111.35  exceeding the limitation on net debt of the district in section 
111.36  475.53, subdivision 4, or 305 363 percent of its adjusted net 
112.1   tax capacity as most recently determined, whichever is less; 
112.2      (3) less the maximum net debt permissible for the district 
112.3   on December 1 of the year the application is received, under the 
112.4   limitation in section 475.53, subdivision 4, or 305 363 percent 
112.5   of its adjusted net tax capacity as most recently determined, 
112.6   whichever is less; 
112.7      (4) less any amount by which the amount voted exceeds the 
112.8   total cost of the facilities for which the loan is granted.  
112.9      (b) The loan may be approved in an amount computed as 
112.10  provided in paragraph (a), clauses (1) to (3), subject to later 
112.11  reduction according to paragraph (a), clause (4). 
112.12     Sec. 18.  Laws 1995, First Special Session chapter 3, 
112.13  article 12, section 7, as amended by Laws 1997, First Special 
112.14  Session chapter 4, article 9, section 2, Laws 1998, chapter 270, 
112.15  section 4, and Laws 1998, chapter 359, section 20, is amended to 
112.16  read: 
112.17     Sec. 7.  [MINNESOTA EDUCATION TELECOMMUNICATIONS COUNCIL.] 
112.18     Subdivision 1.  [STATE COUNCIL MEMBERSHIP.] The membership 
112.19  of the Minnesota education telecommunications council 
112.20  established in Laws 1993, First Special Session chapter 2, is 
112.21  expanded to include representatives of elementary and secondary 
112.22  education.  The membership shall consist of three 
112.23  representatives from the University of Minnesota; three 
112.24  representatives of the board of trustees for Minnesota state 
112.25  colleges and universities; one representative of the higher 
112.26  education services offices; one representative appointed by the 
112.27  private college council; one representative selected by the 
112.28  commissioner of administration; eight representatives selected 
112.29  by the commissioner of children, families, and learning, at 
112.30  least one of which must come from each of the six higher 
112.31  education telecommunication regions; a representative from the 
112.32  office of technology; two members each from the senate and the 
112.33  house of representatives selected by the subcommittee on 
112.34  committees of the committee on rules and administration of the 
112.35  senate and the speaker of the house, one member from each body 
112.36  must be a member of the minority party; and three 
113.1   representatives of libraries, one representing regional public 
113.2   libraries, one representing multitype libraries, and one 
113.3   representing community libraries, selected by the governor.  The 
113.4   council shall: 
113.5      (1) develop a statewide vision and plans for the use of 
113.6   distance learning technologies and provide leadership in 
113.7   implementing the use of such technologies; 
113.8      (2) recommend to the commissioner and the legislature by 
113.9   December 15, 1996, a plan for long-term governance and a 
113.10  proposed structure for statewide and regional 
113.11  telecommunications; 
113.12     (3) recommend educational policy relating to 
113.13  telecommunications; 
113.14     (4) (3) determine priorities for use; 
113.15     (5) (4) oversee coordination of networks for post-secondary 
113.16  campuses, K-12 kindergarten through grade 12 education, and 
113.17  regional and community libraries; 
113.18     (6) (5) review application for telecommunications access 
113.19  grants under Minnesota Statutes, section 124C.74 125B.20, and 
113.20  recommend to the department grants for funding; 
113.21     (7) (6) determine priorities for grant funding proposals; 
113.22  and 
113.23     (8) (7) work with the information policy office to ensure 
113.24  consistency of the operation of the learning network with 
113.25  standards of an open system architecture. 
113.26     The council shall consult with representatives of the 
113.27  telecommunication industry in implementing this section.  
113.28     Subd. 2.  [DISTRICT COUNCIL MEMBERSHIP.] District 
113.29  organizations that coordinate applications for telecommunication 
113.30  access grants are encouraged to become members of the regional 
113.31  higher education telecommunication council in their area. 
113.32     Subd. 3.  [CRITERIA.] In addition to responsibilities of 
113.33  the council under Laws 1993, First Special Session chapter 2, as 
113.34  amended, the telecommunications council shall evaluate grant 
113.35  applications under Minnesota Statutes, section 124C.74 and 
113.36  applications from district organizations using the following 
114.1   criteria: 
114.2      (1) evidence of cooperative arrangements with other 
114.3   post-secondary institutions, school districts, and community and 
114.4   regional libraries in the geographic region; 
114.5      (2) plans for shared classes and programs; 
114.6      (3) avoidance of network duplication; 
114.7      (4) evidence of efficiencies to be achieved in delivery of 
114.8   instruction due to use of telecommunications; 
114.9      (5) a plan for development of a list of all courses 
114.10  available in the region for delivery at a distance; 
114.11     (6) a plan for coordinating and scheduling courses; and 
114.12     (7) a plan for evaluation of costs, access, and outcomes. 
114.13     Sec. 19.  Laws 1997, First Special Session chapter 4, 
114.14  article 9, section 13, is amended to read: 
114.15     Sec. 13.  [REPEALER.] 
114.16     (a) Minnesota Statutes 1996, section 124C.74, is repealed 
114.17  effective July 1, 1999 2001.  
114.18     (b) Minnesota Statutes 1996, section 134.46, is repealed. 
114.19     Sec. 20.  Laws 1998, chapter 404, section 5, subdivision 5, 
114.20  is amended to read: 
114.21  Subd. 5.  Metropolitan Magnet Schools                22,200,000 
114.22  For awarding metropolitan magnet school 
114.23  grants to groups of qualified 
114.24  metropolitan school districts under 
114.25  Minnesota Statutes, section 124C.498.  
114.26  $1,900,000 is for the completion of the 
114.27  Downtown Integration magnet school in 
114.28  Minneapolis. 
114.29  $3,800,000 is for planning, design, 
114.30  acquisition of land, architectural 
114.31  fees, and engineering fees for the East 
114.32  Metropolitan Integration magnet school 
114.33  in the East Metropolitan area.  Of that 
114.34  amount, $2,800,000 is for land 
114.35  acquisition and site development.  
114.36  $14,500,000 is for the construction of 
114.37  the Metropolitan Integration magnet 
114.38  school in Robbinsdale. 
114.39  $2,000,000 is for the Southwest 
114.40  Metropolitan Integration magnet school 
114.41  in Edina. 
114.42     Sec. 21.  [REORGANIZATION DEBT; HOWARD 
114.43  LAKE-WAVERLY-WINSTED.] 
115.1      Notwithstanding Laws 1994, chapter 647, article 6, section 
115.2   38, or any other law to the contrary, the unreserved operating 
115.3   fund balance used to compute the reorganization operating debt 
115.4   levy authority for independent school district No. 2687, Howard 
115.5   Lake-Waverly-Winsted, is June 30, 1995. 
115.6      Sec. 22.  [FISCAL YEARS 2000 TO 2003 DECLINING PUPIL UNIT 
115.7   AID; ST. PETER.] 
115.8      Subdivision 1.  [FISCAL YEAR 2000.] For fiscal year 2000 
115.9   only, independent school district No. 508, St. Peter, is 
115.10  eligible for declining pupil unit aid equal to the product of 
115.11  the general education formula allowance for fiscal year 2000 
115.12  times the difference between the district's adjusted marginal 
115.13  cost pupil units for the 1996-1997 school year and the 
115.14  district's adjusted marginal cost pupil units for the 1999-2000 
115.15  school year. 
115.16     Subd. 2.  [FISCAL YEAR 2001.] For fiscal year 2001 only, 
115.17  independent school district No. 508, St. Peter, is eligible for 
115.18  declining pupil unit aid equal to the product of the general 
115.19  education formula allowance for fiscal year 2001 times 75 
115.20  percent of the difference between the district's adjusted 
115.21  marginal cost pupil units for the 1996-1997 school year and the 
115.22  district's adjusted marginal cost pupil units for the 2000-2001 
115.23  school year. 
115.24     Subd. 3.  [FISCAL YEAR 2002.] For fiscal year 2002 only, 
115.25  independent school district No. 508, St. Peter, is eligible for 
115.26  declining pupil unit aid equal to the product of the general 
115.27  education formula allowance for fiscal year 2002 times 50 
115.28  percent of the difference between the district's adjusted 
115.29  marginal cost pupil units for the 1996-1997 school year and the 
115.30  district's adjusted marginal cost pupil units for the 2001-2002 
115.31  school year. 
115.32     Subd. 4.  [FISCAL YEAR 2003.] For fiscal year 2003 only, 
115.33  independent school district No. 508, St. Peter, is eligible for 
115.34  declining pupil unit aid equal to the product of the general 
115.35  education formula allowance for fiscal year 2003 times 25 
115.36  percent of the difference between the district's adjusted 
116.1   marginal cost pupil units for the 1996-1997 school year and the 
116.2   district's adjusted marginal cost pupil units for the 2002-2003 
116.3   school year. 
116.4      Sec. 23.  [FISCAL YEARS 2000 to 2002 DECLINING PUPIL UNIT 
116.5   AID; CLIMAX, KITTSON CENTRAL, ADA-BORUP, WARREN-ALVARADO-OSLO, 
116.6   BRECKENRIDGE, EAST GRAND FORKS, AND STEPHEN-ARGYLE CENTRAL.] 
116.7      Subdivision 1.  [FISCAL YEAR 2000.] For fiscal year 2000 
116.8   only, independent school district Nos. 592, Climax; 2171, 
116.9   Kittson Central; 2854, Ada-Borup; 2176, Warren-Alvarado-Oslo; 
116.10  846, Breckenridge; 595, East Grand Forks; and 2856, 
116.11  Stephen-Argyle Central are eligible for declining pupil unit aid 
116.12  equal to the product of the general education formula allowance 
116.13  for fiscal year 2000 times 75 percent of the difference between 
116.14  the districts' adjusted marginal cost pupil units for the 
116.15  1996-1997 school year and the districts' adjusted marginal cost 
116.16  pupil units for the 1999-2000 school year. 
116.17     Subd. 2.  [FISCAL YEAR 2001.] For fiscal year 2001 only, 
116.18  independent school district Nos. 592, Climax; 2171, Kittson 
116.19  Central; 2854, Ada-Borup; 2176, Warren-Alvarado-Oslo; 846, 
116.20  Breckenridge; 595, East Grand Forks; and 2856, Stephen-Argyle 
116.21  Central are eligible for declining pupil unit aid equal to the 
116.22  product of the general education formula allowance for fiscal 
116.23  year 2001 times 50 percent of the difference between the 
116.24  districts' adjusted marginal cost pupil units for the 1996-1997 
116.25  school year and the districts' adjusted marginal cost pupil 
116.26  units for the 2000-2001 school year. 
116.27     Subd. 3.  [FISCAL YEAR 2002.] For fiscal year 2002 only, 
116.28  independent school district Nos. 592, Climax; 2171, Kittson 
116.29  Central; 2854, Ada-Borup; 2176, Warren-Alvarado-Oslo; 846, 
116.30  Breckenridge; 595, East Grand Forks; and 2856, Stephen-Argyle 
116.31  Central are eligible for declining pupil unit aid equal to the 
116.32  product of the general education formula allowance for fiscal 
116.33  year 2002 times 25 percent of the difference between the 
116.34  districts' adjusted marginal cost pupil units for the 1996-1997 
116.35  school year and the districts' adjusted marginal cost pupil 
116.36  units for the 2001-2002 school year. 
117.1      Sec. 24.  [HEALTH AND SAFETY; PROCTOR.] 
117.2      Notwithstanding any law to the contrary, independent school 
117.3   district No. 704, Proctor, may include in its health and safety 
117.4   program the amounts necessary to make health and safety 
117.5   improvements to an ice arena located within the district 
117.6   boundaries in order for the district to use the facility to meet 
117.7   the district's curriculum needs under the state graduation 
117.8   rule.  The district must attempt to renegotiate its lease 
117.9   agreement with the county that operates the arena before it is 
117.10  eligible for health and safety revenue under this section.  The 
117.11  total amount of revenue approved for this purpose shall not 
117.12  exceed $150,000. 
117.13     Sec. 25.  [ALTERNATIVE FACILITIES REVENUE PROGRAM.] 
117.14     Subdivision 1.  [INDEPENDENT SCHOOL DISTRICT NO. 622, NORTH 
117.15  ST. PAUL-MAPLEWOOD-OAKDALE.] Independent school district No. 
117.16  622, North St. Paul-Maplewood-Oakdale, is eligible for the 
117.17  alternative facilities revenue program under Minnesota Statutes, 
117.18  section 123B.59, for the purposes of financing school facilities 
117.19  in the district. 
117.20     Subd. 2.  [STILLWATER.] Independent school district No. 
117.21  834, Stillwater, is eligible for the alternative facilities 
117.22  revenue program under Minnesota Statutes, section 123B.59, for 
117.23  the purposes of financing school facilities in the district. 
117.24     Sec. 26.  [RESIDENTIAL ACADEMIES.] 
117.25     (a) If a recipient has been awarded a grant under Laws 
117.26  1998, chapter 398, article 5, section 46, and fails to meet the 
117.27  requirements under the application process for implementing the 
117.28  program after June 30, 1999, any grant money awarded but not 
117.29  paid shall not cancel but is appropriated to the commissioner 
117.30  for additional capital grants to new or existing grantees.  The 
117.31  commissioner may reopen the application process with any funds 
117.32  made available. 
117.33     (b) All projects awarded grants must submit updated capital 
117.34  and operating budget plans to the department of children, 
117.35  families, and learning by June 11, 1999.  The commissioner shall 
117.36  approve all educationally and economically advisable plans by 
118.1   June 15, 1999.  Only projects with approved updated plans shall 
118.2   be eligible to receive funds.  If any project is found 
118.3   ineligible to receive funds, the commissioner may reallocate the 
118.4   funds formerly allocated to that project to the remaining 
118.5   eligible projects. 
118.6      Sec. 27.  [APPROPRIATIONS.] 
118.7      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
118.8   LEARNING.] The sums indicated in this section are appropriated 
118.9   from the general fund to the department of children, families, 
118.10  and learning for the fiscal years designated.  
118.11     Subd. 2.  [HEALTH AND SAFETY AID.] For health and safety 
118.12  aid according to Minnesota Statutes, section 123B.57, 
118.13  subdivision 5: 
118.14       $14,528,000    .....     2000 
118.15       $14,957,000    .....     2001 
118.16     The 2000 appropriation includes $1,415,000 for 1999 and 
118.17  $13,113,000 for 2000.  
118.18     The 2001 appropriation includes $1,456,000 for 2000 and 
118.19  $13,501,000 for 2001.  
118.20     Subd. 3.  [DEBT SERVICE AID.] For debt service aid 
118.21  according to Minnesota Statutes, section 123B.53, subdivision 6: 
118.22       $33,165,000    .....     2000
118.23       $32,084,000    .....     2001
118.24     The 2000 appropriation includes $3,842,000 for 1999 and 
118.25  $29,323,000 for 2000. 
118.26     The 2001 appropriation includes $3,256,000 for 2000 and 
118.27  $28,828,000 for 2001. 
118.28     Subd. 4.  [INTERACTIVE TELEVISION (ITV) AID.] For 
118.29  interactive television (ITV) aid under Minnesota Statutes, 
118.30  section 126C.40, subdivision 4: 
118.31       $4,197,000     .....     2000
118.32       $2,851,000     .....     2001
118.33     The 2000 appropriation includes $405,000 for 1999 and 
118.34  $3,792,000 for 2000. 
118.35     The 2001 appropriation includes $421,000 for 2000 and 
118.36  $2,430,000 for 2001. 
119.1      Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
119.2   alternative facilities bonding aid, according to Minnesota 
119.3   Statutes, section 123B.59: 
119.4        $19,058,000    .....     2000 
119.5        $19,286,000    .....     2001 
119.6      The 2000 appropriation includes $1,700,000 for 2000 and 
119.7   $17,358,000 for 2001. 
119.8      The 2001 appropriation includes $1,928,000 for 2000 and 
119.9   $17,358,000 for 2001. 
119.10     Subd. 6.  [URBAN LEAGUE STREET ACADEMY.] For a grant to 
119.11  special school district No. 1, Minneapolis, for the urban league 
119.12  street academy for the costs of acquiring and moving to a larger 
119.13  building to expand the academy's program: 
119.14       $750,000       .....     2000 
119.15     This appropriation is available until June 30, 2001. 
119.16     Subd. 7.  [TELECOMMUNICATION ACCESS GRANTS.] (a) For 
119.17  telecommunication access grants according to Minnesota Statutes, 
119.18  section 125B.20: 
119.19       $5,000,000     .....     2000 
119.20     (b) Any balance in the first year does not cancel but is 
119.21  available in the second year.  This amount shall not be included 
119.22  as part of the base for fiscal year 2002-2003. 
119.23     Subd. 8.  [DISASTER RELIEF FACILITIES GRANT; ST. 
119.24  PETER.] For a disaster relief facilities grant to independent 
119.25  school district No. 508, St. Peter: 
119.26       $250,000       .....     2000 
119.27     This grant is for facilities replacement costs not covered 
119.28  by the district's insurance settlement or through federal 
119.29  emergency management agency payments.  
119.30     This appropriation is available until June 30, 2001. 
119.31     Subd. 9.  [DISASTER RELIEF FACILITIES GRANT; COMFREY.] For 
119.32  a disaster relief facilities grant to independent school 
119.33  district No. 81, Comfrey: 
119.34       $450,000       .....     2000 
119.35     This appropriation is available until June 30, 2001. 
119.36     This grant is for facilities replacement costs not covered 
120.1   by the district's insurance settlement or through federal 
120.2   emergency management agency payments. 
120.3      Subd. 10.  [DECLINING PUPIL AID; ST. PETER.] For a grant to 
120.4   independent school district No. 508, St. Peter, to ameliorate 
120.5   general fund operating losses associated with the March, 1998 
120.6   tornado: 
120.7        $  105,000     .....     2000 
120.8        $  278,000     .....     2001 
120.9      Subd. 11.  [FLOODS; DECLINING PUPIL AID.] For declining 
120.10  pupil aid under section 23: 
120.11       $2,132,000     .....     2000 
120.12       $1,758,000     .....     2001 
120.13     Sec. 28.  [REVISOR INSTRUCTION.] 
120.14     In the next and subsequent editions of Minnesota Statutes, 
120.15  the revisor shall codify section 18 as Minnesota Statutes, 
120.16  section 125B.21. 
120.17     Sec. 29.  [REPEALER.] 
120.18     (a) Minnesota Statutes 1998, sections 123A.44; 123A.441; 
120.19  123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 123B.57, 
120.20  subdivisions 4, 5, and 7; 123B.59, subdivision 7; 123B.63, 
120.21  subdivisions 1 and 2; 123B.66; 123B.67; 123B.68; and 123B.69, 
120.22  are repealed effective the day following final enactment. 
120.23     (b) Minnesota Statutes 1998, section 123B.58, is repealed 
120.24  effective July 1, 2004. 
120.25     (c) Minnesota Statutes 1998, section 123B.64, subdivision 
120.26  4, is repealed effective for revenue for fiscal year 2000. 
120.27     (d) Minnesota Statutes 1998, section 123B.64, subdivisions 
120.28  1, 2, and 3, are repealed effective for revenue for fiscal year 
120.29  2001. 
120.30     (e) Minnesota Rules, parts 3500.3900; 3500.4000; 3500.4100; 
120.31  3500.4200; and 3500.4300, are repealed. 
120.32     Sec. 30.  [EFFECTIVE DATES.] 
120.33     Sections 2, 7, 12, 14, 15, 16, and 17 are effective for 
120.34  revenue for fiscal year 2000 and later.  Sections 9, 10, 13, 18, 
120.35  19, 20, and 26 are effective the day following final enactment.  
120.36  Section 21 is effective retroactive to July 1, 1996. 
121.1                              ARTICLE 5 
121.2                         EDUCATION EXCELLENCE 
121.3      Section 1.  Minnesota Statutes 1998, section 41D.02, 
121.4   subdivision 2, is amended to read: 
121.5      Subd. 2.  [ELEMENTARY AND SECONDARY AGRICULTURAL 
121.6   EDUCATION.] The council may provide grants for: 
121.7      (1) planning and establishment costs for elementary and 
121.8   secondary agriculture education programs; 
121.9      (2) new instructional and communication technologies; and 
121.10     (3) curriculum updates. 
121.11     Sec. 2.  Minnesota Statutes 1998, section 122A.18, is 
121.12  amended by adding a subdivision to read: 
121.13     Subd. 7a.  [PERMISSION TO SUBSTITUTE TEACH.] The board of 
121.14  teaching may allow a person who is enrolled in and making 
121.15  satisfactory progress in a board-approved teacher program and 
121.16  who has successfully completed student teaching to be employed 
121.17  as a short-call substitute teacher.  
121.18     Sec. 3.  Minnesota Statutes 1998, section 122A.60, 
121.19  subdivision 3, is amended to read: 
121.20     Subd. 3.  [STAFF DEVELOPMENT OUTCOMES.] The advisory staff 
121.21  development committee must adopt a staff development plan for 
121.22  improving student achievement of education outcomes.  The plan 
121.23  must be consistent with education outcomes that the school board 
121.24  determines.  The plan must include ongoing staff development 
121.25  activities that contribute toward continuous improvement in 
121.26  achievement of the following goals: 
121.27     (1) improve student achievement of state and local 
121.28  education standards in all areas of the curriculum by using best 
121.29  practices methods; 
121.30     (2) effectively meet the needs of a diverse student 
121.31  population, including at-risk children, children with 
121.32  disabilities, and gifted children, within the regular classroom 
121.33  and other settings; 
121.34     (3) provide an inclusive curriculum for a racially, 
121.35  ethnically, and culturally diverse student population that is 
121.36  consistent with the state education diversity rule and the 
122.1   district's education diversity plan; 
122.2      (4) improve staff ability to collaborate and consult with 
122.3   one another and to resolve conflicts collaboration and develop 
122.4   mentoring and peer coaching programs for teachers new to the 
122.5   school or district; 
122.6      (5) effectively teach and model violence prevention policy 
122.7   and curriculum that address early intervention alternatives, 
122.8   issues of harassment, and teach nonviolent alternatives for 
122.9   conflict resolution; and 
122.10     (6) provide teachers and other members of site-based 
122.11  management teams with appropriate management and financial 
122.12  management skills. 
122.13     Sec. 4.  Minnesota Statutes 1998, section 122A.61, 
122.14  subdivision 1, is amended to read: 
122.15     Subdivision 1.  [STAFF DEVELOPMENT REVENUE.] A district is 
122.16  required to reserve an amount equal to at least one percent of 
122.17  the basic revenue under section 126C.10, subdivision 2, for 
122.18  in-service education for programs under section 120B.22, 
122.19  subdivision 2, for staff development plans, including plans for 
122.20  challenging instructional activities and experiences under 
122.21  section 122A.60, and for curriculum development and programs, 
122.22  other in-service education, teachers' workshops, teacher 
122.23  conferences, the cost of substitute teachers staff development 
122.24  purposes, and other related costs for staff development 
122.25  efforts.  A district may annually waive the requirement to 
122.26  reserve their basic revenue under this section if a majority 
122.27  vote of the licensed teachers in the district and a majority 
122.28  vote of the school board agree to a resolution to waive the 
122.29  requirement.  A district in statutory operating debt is exempt 
122.30  from reserving basic revenue according to this section.  
122.31  Districts may expend an additional amount of basic unreserved 
122.32  revenue for staff development based on their needs.  With the 
122.33  exception of amounts reserved for staff development from 
122.34  revenues allocated directly to school sites, the board must 
122.35  initially allocate 50 percent of the reserved revenue to each 
122.36  school site in the district on a per teacher basis, which must 
123.1   be retained by the school site until used.  The board may retain 
123.2   25 percent to be used for district wide staff development 
123.3   efforts.  The remaining 25 percent of the revenue must be used 
123.4   to make grants to school sites that demonstrate exemplary use of 
123.5   allocated staff development revenue for best practices methods.  
123.6   A grant may be used for any purpose authorized under section 
123.7   120B.22, subdivision 2, 122A.60, or for the costs of curriculum 
123.8   development and programs, other in-service education, teachers' 
123.9   workshops, teacher conferences, substitute teachers for staff 
123.10  development purposes, and other staff development efforts, and 
123.11  determined by the site decision-making professional development 
123.12  team.  The site decision-making professional development team 
123.13  must demonstrate to the school board the extent to which staff 
123.14  at the site have met the outcomes of the program.  The board may 
123.15  withhold a portion of initial allocation of revenue if the staff 
123.16  development outcomes are not being met. 
123.17     Sec. 5.  Minnesota Statutes 1998, section 123B.36, 
123.18  subdivision 1, is amended to read: 
123.19     Subdivision 1.  [SCHOOL BOARDS MAY REQUIRE FEES.] (a) For 
123.20  purposes of this subdivision, "home school" means a home school 
123.21  as defined in sections 120A.22 and 120A.24 with five or fewer 
123.22  students receiving instruction.  
123.23     (b) A school board is authorized to require payment of fees 
123.24  in the following areas: 
123.25     (1) in any program where the resultant product, in excess 
123.26  of minimum requirements and at the pupil's option, becomes the 
123.27  personal property of the pupil; 
123.28     (2) admission fees or charges for extra curricular 
123.29  activities, where attendance is optional and where the admission 
123.30  fees or charges a student must pay to attend or participate in 
123.31  an extracurricular activity is the same for all students, 
123.32  regardless of whether the student is enrolled in a public or a 
123.33  home school; 
123.34     (3) a security deposit for the return of materials, 
123.35  supplies, or equipment; 
123.36     (4) personal physical education and athletic equipment and 
124.1   apparel, although any pupil may personally provide it if it 
124.2   meets reasonable requirements and standards relating to health 
124.3   and safety established by the board; 
124.4      (5) items of personal use or products that a student has an 
124.5   option to purchase such as student publications, class rings, 
124.6   annuals, and graduation announcements; 
124.7      (6) fees specifically permitted by any other statute, 
124.8   including but not limited to section 171.05, subdivision 2; 
124.9   provided (i) driver education fees do not exceed the actual cost 
124.10  to the school and school district of providing driver education, 
124.11  and (ii) the driver education courses are open to enrollment to 
124.12  persons between the ages of 15 and 18 who reside or attend 
124.13  school in the school district; 
124.14     (7) field trips considered supplementary to a district 
124.15  educational program; 
124.16     (8) any authorized voluntary student health and accident 
124.17  benefit plan; 
124.18     (9) for the use of musical instruments owned or rented by 
124.19  the district, a reasonable rental fee not to exceed either the 
124.20  rental cost to the district or the annual depreciation plus the 
124.21  actual annual maintenance cost for each instrument; 
124.22     (10) transportation of pupils to and from extra curricular 
124.23  activities conducted at locations other than school, where 
124.24  attendance is optional; 
124.25     (11) transportation of pupils to and from school for which 
124.26  aid for fiscal year 1996 is not authorized under Minnesota 
124.27  Statutes 1994, section 124.223, subdivision 1, and for which 
124.28  levy for fiscal year 1996 is not authorized under Minnesota 
124.29  Statutes 1994, section 124.226, subdivision 5, if a district 
124.30  charging fees for transportation of pupils establishes 
124.31  guidelines for that transportation to ensure that no pupil is 
124.32  denied transportation solely because of inability to pay; 
124.33     (12) motorcycle classroom education courses conducted 
124.34  outside of regular school hours; provided the charge must not 
124.35  exceed the actual cost of these courses to the school district; 
124.36     (13) transportation to and from post-secondary institutions 
125.1   for pupils enrolled under the post-secondary enrollment options 
125.2   program under section 123B.88, subdivision 22.  Fees collected 
125.3   for this service must be reasonable and must be used to reduce 
125.4   the cost of operating the route.  Families who qualify for 
125.5   mileage reimbursement under section 124D.09, subdivision 22, may 
125.6   use their state mileage reimbursement to pay this fee.  If no 
125.7   fee is charged, districts must allocate costs based on the 
125.8   number of pupils riding the route. 
125.9      Sec. 6.  Minnesota Statutes 1998, section 123B.49, 
125.10  subdivision 4, is amended to read: 
125.11     Subd. 4.  [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 
125.12  (a) The board may take charge of and control all extracurricular 
125.13  activities of the teachers and children of the public schools in 
125.14  the district.  Extracurricular activities means all direct and 
125.15  personal services for public school pupils for their enjoyment 
125.16  that are managed and operated under the guidance of an adult or 
125.17  staff member.  The board shall allow all resident pupils 
125.18  receiving instruction in a home school as defined in section 
125.19  123B.36, subdivision 1, paragraph (a), to be eligible to fully 
125.20  participate in extracurricular activities on the same basis as 
125.21  public school students. 
125.22     (b) Extracurricular activities have all of the following 
125.23  characteristics: 
125.24     (1) they are not offered for school credit nor required for 
125.25  graduation; 
125.26     (2) they are generally conducted outside school hours, or 
125.27  if partly during school hours, at times agreed by the 
125.28  participants, and approved by school authorities; 
125.29     (3) the content of the activities is determined primarily 
125.30  by the pupil participants under the guidance of a staff member 
125.31  or other adult. 
125.32     (c) If the board does not take charge of and control 
125.33  extracurricular activities, these activities shall be 
125.34  self-sustaining with all expenses, except direct salary costs 
125.35  and indirect costs of the use of school facilities, met by dues, 
125.36  admissions, or other student fundraising events.  The general 
126.1   fund must reflect only those salaries directly related to and 
126.2   readily identified with the activity and paid by public funds.  
126.3   Other revenues and expenditures for extra curricular activities 
126.4   must be recorded according to the "Manual of Instruction for 
126.5   Uniform Student Activities Accounting for Minnesota School 
126.6   Districts and Area Vocational-Technical Colleges."  
126.7   Extracurricular activities not under board control must have an 
126.8   annual financial audit and must also be audited annually for 
126.9   compliance with this section. 
126.10     (d) If the board takes charge of and controls 
126.11  extracurricular activities, any or all costs of these activities 
126.12  may be provided from school revenues and all revenues and 
126.13  expenditures for these activities shall be recorded in the same 
126.14  manner as other revenues and expenditures of the district.  
126.15     (e) If the board takes charge of and controls 
126.16  extracurricular activities, the teachers or pupils in the 
126.17  district must not participate in such activity, nor shall the 
126.18  school name or any allied name be used in connection therewith, 
126.19  except by consent and direction of the board. 
126.20     Sec. 7.  Minnesota Statutes 1998, section 124D.10, 
126.21  subdivision 3, is amended to read: 
126.22     Subd. 3.  [SPONSOR.] A school board, intermediate school 
126.23  district school board, education districts organized under 
126.24  sections 123A.15 to 123A.19, private college, community college, 
126.25  state university, technical college, or the University of 
126.26  Minnesota may sponsor one or more charter schools. 
126.27     Sec. 8.  Minnesota Statutes 1998, section 124D.10, 
126.28  subdivision 4, is amended to read: 
126.29     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
126.30  authorize one or more licensed teachers under section 122A.18, 
126.31  subdivision 1, to operate a charter school subject to approval 
126.32  by the state board.  A board must vote on charter school 
126.33  application for sponsorship no later than 90 days after 
126.34  receiving the application.  After 90 days, the applicant may 
126.35  apply to the state board.  If a board elects not to sponsor a 
126.36  charter school, the applicant may appeal the board's decision to 
127.1   the state board if two members of the board voted to sponsor the 
127.2   school.  If the state board authorizes the school, the state 
127.3   board must sponsor the school according to this section.  The 
127.4   school must be organized and operated as a cooperative under 
127.5   chapter 308A or nonprofit corporation under chapter 317A.  
127.6      (b) Before the operators may form and operate a school, the 
127.7   sponsor must file an affidavit with the state board stating its 
127.8   intent to authorize a charter school.  The affidavit must state 
127.9   the terms and conditions under which the sponsor would authorize 
127.10  a charter school.  The state board must approve or disapprove 
127.11  the sponsor's proposed authorization within 60 days of receipt 
127.12  of the affidavit.  Failure to obtain state board approval 
127.13  precludes a sponsor from authorizing the charter school that was 
127.14  the subject of the affidavit.  
127.15     (c) The operators authorized to organize and operate a 
127.16  school must hold an election for members of the school's board 
127.17  of directors in a timely manner after the school is operating.  
127.18  Any staff members who are employed at the school, including 
127.19  teachers providing instruction under a contract with a 
127.20  cooperative, and all parents of children enrolled in the school 
127.21  may participate in the election.  Licensed teachers employed at 
127.22  the school, including teachers providing instruction under a 
127.23  contract with a cooperative, must be a majority of the members 
127.24  of the board of directors, unless the state board waives the 
127.25  requirement for the school.  A provisional board may operate 
127.26  before the election of the school's board of directors.  Board 
127.27  of director meetings must comply with section 471.705. 
127.28     (d) The granting or renewal of a charter by a sponsoring 
127.29  entity must not be conditioned upon the bargaining unit status 
127.30  of the employees of the school.  
127.31     Sec. 9.  Minnesota Statutes 1998, section 124D.10, 
127.32  subdivision 5, is amended to read: 
127.33     Subd. 5.  [CONVERSION OF EXISTING SCHOOLS.] A board may 
127.34  convert one or more of its existing schools to charter schools 
127.35  under this section if 90 60 percent of the full-time teachers at 
127.36  the school sign a petition seeking conversion.  The conversion 
128.1   must occur at the beginning of an academic year.  
128.2      Sec. 10.  Minnesota Statutes 1998, section 124D.10, 
128.3   subdivision 6, is amended to read: 
128.4      Subd. 6.  [CONTRACT.] The sponsor's authorization for a 
128.5   charter school must be in the form of a written contract signed 
128.6   by the sponsor and the board of directors of the charter 
128.7   school.  The contract must be completed within 90 days of the 
128.8   state board approval of the sponsor's proposed authorization.  
128.9   The contract for a charter school must be in writing and contain 
128.10  at least the following: 
128.11     (1) a description of a program that carries out one or more 
128.12  of the purposes in subdivision 1; 
128.13     (2) specific outcomes pupils are to achieve under 
128.14  subdivision 10; 
128.15     (3) admission policies and procedures; 
128.16     (4) management and administration of the school; 
128.17     (5) requirements and procedures for program and financial 
128.18  audits; 
128.19     (6) how the school will comply with subdivisions 8, 13, 16, 
128.20  and 23; 
128.21     (7) assumption of liability by the charter school; 
128.22     (8) types and amounts of insurance coverage to be obtained 
128.23  by the charter school; 
128.24     (9) the term of the contract, which may be up to three 
128.25  years; and 
128.26     (10) if the board of directors or the operators of the 
128.27  charter school provide special instruction and services for 
128.28  children with a disability under sections 125A.03 to 125A.24, 
128.29  and 125A.65, a description of the financial parameters within 
128.30  which the charter school will operate to provide the special 
128.31  instruction and services to children with a disability. 
128.32     Sec. 11.  Minnesota Statutes 1998, section 124D.10, 
128.33  subdivision 11, is amended to read: 
128.34     Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 
128.35  charter school must employ or contract with necessary teachers, 
128.36  as defined by section 122A.15, subdivision 1, who hold valid 
129.1   licenses to perform the particular service for which they are 
129.2   employed in the school.  The school may employ necessary 
129.3   employees who are not required to hold teaching licenses to 
129.4   perform duties other than teaching and may contract for other 
129.5   services.  The school may discharge teachers and nonlicensed 
129.6   employees.  A person, without holding a valid administrator's 
129.7   license, may perform administrative, supervisory, or 
129.8   instructional leadership duties. 
129.9      The board of directors also shall decide matters related to 
129.10  the operation of the school, including budgeting, curriculum and 
129.11  operating procedures.  
129.12     Sec. 12.  Minnesota Statutes 1998, section 124D.11, 
129.13  subdivision 4, is amended to read: 
129.14     Subd. 4.  [BUILDING LEASE AID.] When a charter school finds 
129.15  it economically advantageous to rent or lease a building or land 
129.16  for any instructional purposes and it determines that the total 
129.17  operating capital revenue under section 126C.10, subdivision 13, 
129.18  is insufficient for this purpose, it may apply to the 
129.19  commissioner for building lease aid for this purpose.  Criteria 
129.20  for aid approval and revenue uses shall be as defined for the 
129.21  building lease levy in section 126C.40, subdivision 1, 
129.22  paragraphs (a) and (b).  The amount of building lease aid per 
129.23  pupil unit served for a charter school for any year shall not 
129.24  exceed the lesser of (a) 80 90 percent of the approved cost or 
129.25  (b) the product of the pupil units served for the current school 
129.26  year times the sum of the state average debt redemption fund 
129.27  revenue plus capital revenue, according to section 126C.40, per 
129.28  pupil unit served for the current fiscal year $1,500. 
129.29     Sec. 13.  Minnesota Statutes 1998, section 124D.11, 
129.30  subdivision 6, is amended to read: 
129.31     Subd. 6.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
129.32  school is eligible to receive other aids, grants, and revenue 
129.33  according to chapters 120A to 129C, as though it were a district.
129.34  except that, notwithstanding section 127A.45, subdivision 3, the 
129.35  payments must be of an equal amount on each of the 23 payment 
129.36  dates unless a charter school is in its first year of operation 
130.1   in which case it shall receive on its first payment date ten 
130.2   percent of its cumulative amount guaranteed for the year and 22 
130.3   payments of an equal amount thereafter the sum of which shall be 
130.4   90 percent of the cumulative amount guaranteed.  However, it 
130.5      (b) Notwithstanding paragraph (a), a charter school may not 
130.6   receive aid, a grant, or revenue if a levy is required to obtain 
130.7   the money, except as otherwise provided in this section.  
130.8      (c) Federal aid received by the state must be paid to the 
130.9   school, if it qualifies for the aid as though it were a school 
130.10  district. 
130.11     (b) (d) A charter school may receive money from any source 
130.12  for capital facilities needs.  In the year-end report to the 
130.13  state board of education, the charter school shall report the 
130.14  total amount of funds received from grants and other outside 
130.15  sources. 
130.16     (e) Notwithstanding paragraph (a) or (b), a charter school 
130.17  is eligible to receive the aid portion of integration revenue 
130.18  under section 124D.86, subdivision 3, for enrolled students who 
130.19  are residents of a district that is eligible for integration 
130.20  revenue if the enrollment of the pupil in the charter school 
130.21  contributes to desegregation or integration purposes.  If the 
130.22  charter school has elected not to provide transportation under 
130.23  section 124D.10, subdivision 16, the aid shall be reduced by the 
130.24  amount per pupil unit specified for the district where the 
130.25  charter school is located under section 123B.92, subdivision 8. 
130.26     Sec. 14.  Minnesota Statutes 1998, section 124D.11, is 
130.27  amended by adding a subdivision to read: 
130.28     Subd. 9.  [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 
130.29  Notwithstanding section 127A.45, subdivision 3, aid payments for 
130.30  the current fiscal year to a charter school not in its first 
130.31  year of operation shall be of an equal amount on each of the 23 
130.32  payment dates.  A charter school in its first year of operation 
130.33  shall receive, on its first payment date, ten percent of its 
130.34  cumulative amount guaranteed for the year and 22 payments of an 
130.35  equal amount thereafter the sum of which shall be 90 percent of 
130.36  the cumulative amount guaranteed. 
131.1      (b) Notwithstanding section 127A.45, subdivision 3, and 
131.2   paragraph (a), 90 percent of the start-up cost aid under 
131.3   subdivision 8 shall be paid within 45 days after the first day 
131.4   of student attendance for that school year. 
131.5      Sec. 15.  Minnesota Statutes 1998, section 125B.05, 
131.6   subdivision 3, is amended to read: 
131.7      Subd. 3.  [SOFTWARE DEVELOPMENT.] The commissioner may 
131.8   charge school districts or cooperative units for the actual cost 
131.9   of software development used by the district or cooperative 
131.10  unit.  Any amount received is annually appropriated to the 
131.11  department of children, families, and learning for this 
131.12  purpose.  A school district, charter school, or cooperative unit 
131.13  may not implement a payroll financial, student, or staff 
131.14  software system after June 30, 1994, until the system has been 
131.15  reviewed by the department to ensure that it provides the 
131.16  required data elements and format. 
131.17     Sec. 16.  Laws 1997, First Special Session chapter 4, 
131.18  article 9, section 6, is amended to read:  
131.19     Sec. 6.  [LEARNING ACADEMY.] 
131.20     Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
131.21  develop standards and requirements and certify courses for a 
131.22  Minnesota learning academy to provide training opportunities for 
131.23  educators, administrators, school media and information 
131.24  technology professionals, and librarians in the use of 
131.25  technology and its integration into learning activities for 
131.26  meeting the educational needs of all students.  Only certified 
131.27  classes may be used to fulfill the requirements of the learning 
131.28  academy. 
131.29     Subd. 2.  [DEVELOPMENT OF THE LEARNING ACADEMY.] To develop 
131.30  the learning academy, the commissioner shall consult with 
131.31  representatives of public schools, higher education, teacher 
131.32  organizations, students, private business, state agencies, 
131.33  libraries, and political subdivisions to do the following: 
131.34     (1) set measures for teacher training opportunities on 
131.35  technical skills and technology integration skills; 
131.36     (2) identify and establish outcomes for a series of 
132.1   training courses that provide for technical skills and 
132.2   technology classroom integration skills, including skills to 
132.3   enable school media and information specialists to train school 
132.4   staff; 
132.5      (3) identify existing education organizations, public, or 
132.6   private institutions to develop and provide training courses; 
132.7      (4) evaluate prerequisites for the classroom integration 
132.8   skills course; 
132.9      (5) certify or decertify classes and courses for inclusion 
132.10  in or exclusion from the learning academy; and 
132.11     (6) coordinate and make certified classes and courses 
132.12  available to eligible participants. 
132.13     Subd. 3.  [FUNDING.] The commissioner shall use available 
132.14  appropriations to provide start-up and initial operating 
132.15  subsidies for the learning academy sites.  Appropriated funds 
132.16  may also be used to partially subsidize costs of attendees of 
132.17  the academy. 
132.18     Sec. 17.  [SALARY CREDIT FOR PRIOR EXPERIENCE AND 
132.19  TRAINING.] 
132.20     For purposes of determining the placement on the salary 
132.21  schedule of a program graduate of the collaborative urban 
132.22  educator, southeast Asian teacher licensure, or circles of 
132.23  support in educational leadership program, a school district 
132.24  that employs a program graduate may give additional credit on 
132.25  the salary schedule for that person's teaching experience and 
132.26  academic preparation attained while participating in the 
132.27  program, and also may consider the person's employment 
132.28  experience and academic preparation attained before enrolling in 
132.29  any of these three programs. 
132.30     Sec. 18.  [APPROPRIATIONS.] 
132.31     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
132.32  LEARNING.] The sums indicated in this section are appropriated 
132.33  from the general fund to the department of children, families, 
132.34  and learning for the fiscal years designated. 
132.35     Subd. 2.  [ST. PAUL COMMUNITY-BASED SCHOOL PROGRAM.] For a 
132.36  grant to independent school district No. 625, St. Paul, for the 
133.1   operation of a community-based school program.  The school 
133.2   district must report to the legislature on the academic and 
133.3   social results of this program by January 15, 2000. 
133.4        $3,000,000     .....     2000 
133.5      Any balance in the first year does not cancel but is 
133.6   available in the second year.  This is a one-time appropriation. 
133.7      Subd. 3.  [ADVANCED PLACEMENT AND INTERNATIONAL 
133.8   BACCALAUREATE PROGRAMS.] For the state advanced placement and 
133.9   international baccalaureate programs: 
133.10       $1,875,000     .....     2000 
133.11       $1,875,000     .....     2001 
133.12     Notwithstanding Minnesota Statutes, section 120B.13, 
133.13  subdivisions 1 and 2, $375,000 each year is for teachers to 
133.14  attend subject matter summer training programs and follow-up 
133.15  support workshops approved by the advanced placement or 
133.16  international baccalaureate programs.  The amount of the subsidy 
133.17  for each teacher attending an advanced placement or 
133.18  international baccalaureate summer training program or workshop 
133.19  shall be the same.  The commissioner shall determine the payment 
133.20  process and the amount of the subsidy. 
133.21     Notwithstanding Minnesota Statutes, section 120B.13, 
133.22  subdivision 3, in each year to the extent of available 
133.23  appropriations, the commissioner shall pay all examination fees 
133.24  for all students sitting for an advanced placement examination, 
133.25  international baccalaureate examination, or both.  If this 
133.26  amount is not adequate, the commissioner may pay less than the 
133.27  full examination fee. 
133.28     Any balance in the first year does not cancel but is 
133.29  available in the second year. 
133.30     Subd. 4.  [STATEWIDE TESTING.] For supporting 
133.31  implementation of the graduation standards: 
133.32       $9,000,000    .....     2000 
133.33       $9,000,000    .....     2001 
133.34     Any balance in the first year does not cancel but is 
133.35  available in the second year. 
133.36     Subd. 5.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
134.1   lease aid according to Minnesota Statutes, section 124D.11, 
134.2   subdivision 4: 
134.3        $2,992,000      .....     2000 
134.4        $3,616,000      .....     2001 
134.5      The 2000 appropriation includes $194,000 for 1999 and 
134.6   $2,798,000 for 2000. 
134.7      The 2001 appropriation includes $311,000 for 2000 and 
134.8   $3,305,000 for 2001.  
134.9      Subd. 6.  [CHARTER SCHOOL START-UP GRANTS.] For charter 
134.10  school start-up cost aid under Minnesota Statutes, section 
134.11  124D.11: 
134.12       $1,789,000    .....     2000 
134.13       $1,876,000    .....     2001 
134.14     The 2000 appropriation includes $100,000 for 1999 and 
134.15  $1,689,000 for 2000.  
134.16     The 2001 appropriation includes $188,000 for 1999 and 
134.17  $1,688,000 for 2001. 
134.18     Any balance in the first year does not cancel but is 
134.19  available in the second year.  This appropriation may also be 
134.20  used for grants to convert existing schools into charter schools.
134.21     Subd. 7.  [GRADUATION RULE RESOURCE GRANTS.] For graduation 
134.22  rule resource grants according to Laws 1998, chapter 398, 
134.23  article 5, section 40: 
134.24       $  600,000     .....     2000 
134.25     This appropriation is available until June 30, 2001. 
134.26     Of this amount, $500,000 is for a current recipient of 
134.27  funding from the National Geographic Society Education 
134.28  Foundation; and $100,000 is for a program offering horse riding 
134.29  as an alternative educational program for children with a 
134.30  disability. 
134.31     Subd. 8.  [CHARTER SCHOOL INTEGRATION AID.] For new 
134.32  integration aid to go to charter schools according to Minnesota 
134.33  Statutes, section 124D.11, subdivision 6, paragraph (e): 
134.34       $50,000        .....     2000 
134.35       $50,000        .....     2001 
134.36     Any balance in the first year does not cancel but is 
135.1   available in the second year. 
135.2      Subd. 9.  [HOMEWORK HOTLINE.] For grants for homework 
135.3   hotline providers: 
135.4        $ 40,000       .....     2000 
135.5        $ 40,000       .....     2001 
135.6      This appropriation is available to assist students with 
135.7   homework by telephone or other interactive technology.  The 
135.8   program providers must offer assistance to students at least 
135.9   four days per week.  The state aid is contingent upon the 
135.10  program matching each $1 of state revenue with $2 of local or 
135.11  private funding or in-kind contributions. 
135.12     Subd. 10.  [MINNESOTA TALENTED YOUTH MATH PROJECT.] For a 
135.13  grant to the South Central Service Cooperative for the Minnesota 
135.14  talented youth math project program operated by the South 
135.15  Central Service Cooperative and as fiscal agent for the talented 
135.16  youth math project programs established and operated by the 
135.17  Northwest Service Cooperative, Northeast Service Cooperative, 
135.18  North Central Service Cooperative, and Southwest/West Central 
135.19  Service Cooperative. 
135.20       $  145,000     .....     2000 
135.21       $  175,000     .....     2001 
135.22     Any balance in the first year does not cancel but is 
135.23  available in the second year.  This is a one-time appropriation. 
135.24     Subd. 11.  [PROGRAMS TRAINING TEACHERS OF SPECIAL NEEDS 
135.25  STUDENTS.] For programs training teachers of special needs 
135.26  students under Laws 1998, chapter 398, article 5, section 42: 
135.27       $1,500,000     .....     2000 
135.28     This appropriation is available until June 30, 2001. 
135.29     Sec. 19.  [EFFECTIVE DATES.] 
135.30     Sections 5, 6, 11, and 17 are effective for the 1999-2000 
135.31  school year and later. 
135.32                             ARTICLE 6 
135.33                           OTHER PROGRAMS 
135.34     Section 1.  Minnesota Statutes 1998, section 120A.24, 
135.35  subdivision 1, is amended to read: 
135.36     Subdivision 1.  [REPORTS TO SUPERINTENDENT.] The person in 
136.1   charge of providing instruction to a child must submit the 
136.2   following information to the superintendent of the district in 
136.3   which the child resides: 
136.4      (1) by October 1 of each school year, the name, age birth 
136.5   date, and address of each child receiving instruction; 
136.6      (2) the name of each instructor and evidence of compliance 
136.7   with one of the requirements specified in section 120A.22, 
136.8   subdivision 10; 
136.9      (3) an annual instructional calendar; and 
136.10     (4) for each child instructed by a parent who meets only 
136.11  the requirement of section 120A.22, subdivision 10, clause (6), 
136.12  a quarterly report card on the achievement of the child in each 
136.13  subject area required in section 120A.22, subdivision 9. 
136.14     Sec. 2.  Minnesota Statutes 1998, section 123A.48, 
136.15  subdivision 10, is amended to read: 
136.16     Subd. 10.  [DISTRICT BOARD ADOPTION OF PROPOSED PLAT.] The 
136.17  board of any independent district maintaining a secondary 
136.18  school, the board of any common district maintaining a secondary 
136.19  school, all or part of whose land is included in the proposed 
136.20  new district, must, within 45 days of the approval of the plat 
136.21  by the commissioner, either adopt or reject the plan as proposed 
136.22  in the approved plat.  If the board of any such district 
136.23  entitled to act on the petition rejects the proposal, the 
136.24  proceedings are terminated and dismissed.  If any board fails to 
136.25  act on the plat within the time allowed, the proceedings are 
136.26  terminated.  If any school board is unable to obtain a majority 
136.27  of its members' votes to accept or reject the plat and plan, a 
136.28  petition of residents of the district unable to obtain a 
136.29  majority of votes equal to 20 percent of the votes cast in the 
136.30  last school district general election in that district may be 
136.31  submitted to the county auditor requesting a public vote to 
136.32  accept or reject the plat and plan.  The vote shall be scheduled 
136.33  on the next available election date.  The county auditor shall 
136.34  notify the commissioner of the scheduled vote, conduct the 
136.35  election in that district and certify the results of the 
136.36  election to the commissioner.  Other affected school boards that 
137.1   approve the plat and plan may choose to hold an election.  If 
137.2   elections are conducted in each affected school district, 
137.3   results shall be separate and a majority vote to approve the 
137.4   plat and plan must be reached in each of the affected 
137.5   districts.  If the plat and plan are rejected by the voters, a 
137.6   new plat and plan cannot be submitted, except by school board 
137.7   resolution in a district where the plat and plan were rejected, 
137.8   until January 1 of the year following the next school district 
137.9   general election.  
137.10     Sec. 3.  Minnesota Statutes 1998, section 123B.195, is 
137.11  amended to read: 
137.12     123B.195 [BOARD MEMBERS' RIGHT TO EMPLOYMENT.] 
137.13     Notwithstanding section 471.88, subdivision 5, a school 
137.14  board member may be newly employed or may continue to be 
137.15  employed by a school district as an employee only if there is a 
137.16  reasonable expectation at the beginning of the fiscal year or at 
137.17  the time the contract is entered into or extended that the 
137.18  amount to be earned by that officer under that contract or 
137.19  employment relationship will not exceed $5,000 in that fiscal 
137.20  year.  Notwithstanding section 122A.40 or 122A.41 or other law, 
137.21  if the officer does not receive unanimous majority approval to 
137.22  be initially employed or to continue in employment at a meeting 
137.23  at which all board members are present, that employment is 
137.24  immediately terminated and that officer has no further rights to 
137.25  employment while serving as a school board member in the 
137.26  district. 
137.27     Sec. 4.  Minnesota Statutes 1998, section 124D.94, 
137.28  subdivision 3, is amended to read: 
137.29     Subd. 3.  [BOARD OF DIRECTORS.] The board of directors of 
137.30  the foundation shall consist of the commissioner of children, 
137.31  families, and learning, a member of the state board of education 
137.32  selected by the state board who shall serve as chair and 20 
137.33  members to be appointed by the governor.  Of the 20 members 
137.34  appointed by the governor, eight shall represent a variety of 
137.35  education groups and 12 shall represent a variety of business 
137.36  groups.  The members of the board of directors shall select one 
138.1   member to serve as chair.  The commissioner of children, 
138.2   families, and learning shall serve as secretary for the board of 
138.3   directors and provide administrative support to the foundation.  
138.4   An executive committee of the foundation board composed of the 
138.5   board officers and chairs of board committees, may only advise 
138.6   and make recommendations to the foundation board.  
138.7      Sec. 5.  Minnesota Statutes 1998, section 124D.94, 
138.8   subdivision 6, is amended to read: 
138.9      Subd. 6.  [CONTRACTS.] The foundation board shall review 
138.10  and approve each contract of the board.  Each contract of the 
138.11  foundation board shall be subject to the same review and 
138.12  approval procedures as a contract of the state board of 
138.13  education department of children, families, and learning. 
138.14     Sec. 6.  Minnesota Statutes 1998, section 124D.94, 
138.15  subdivision 7, is amended to read: 
138.16     Subd. 7.  [FOUNDATION STAFF.] (a) The state board 
138.17  foundation board with review by the commissioner shall appoint 
138.18  the executive director and other staff who shall perform duties 
138.19  and have responsibilities solely related to the foundation.  
138.20     (b) As part of the annual plan of work, the foundation, 
138.21  under the direction of with review by the state 
138.22  board commissioner, may appoint up to three employees.  The 
138.23  employees appointed under this paragraph are not state employees 
138.24  under chapter 43A, but are covered under section 3.736.  At the 
138.25  foundation board's discretion, the employees may participate in 
138.26  the state health and state insurance plans for employees in 
138.27  unclassified service.  The employees shall be supervised by the 
138.28  executive director. 
138.29     Sec. 7.  Minnesota Statutes 1998, section 126C.42, 
138.30  subdivision 1, is amended to read: 
138.31     Subdivision 1.  [1977 STATUTORY OPERATING DEBT.] (a) In 
138.32  each year in which so required by this subdivision, a district 
138.33  must make an additional levy to eliminate its statutory 
138.34  operating debt, determined as of June 30, 1977, and certified 
138.35  and adjusted by the commissioner.  This levy shall not be made 
138.36  in more than 30 successive years and each year before it is 
139.1   made, it must be approved by the commissioner and the approval 
139.2   shall specify its amount.  This levy shall be an amount which is 
139.3   equal to the amount raised by a levy of a net tax rate of 1.66 
139.4   1.98 percent times the adjusted net tax capacity of the district 
139.5   for the preceding year for taxes payable in 1991 2000 and 
139.6   thereafter; provided that in the last year in which the district 
139.7   is required to make this levy, it must levy an amount not to 
139.8   exceed the amount raised by a levy of a net tax rate of 1.66 
139.9   1.98 percent times the adjusted net tax capacity of the district 
139.10  for the preceding year for taxes payable in 1991 2000 and 
139.11  thereafter.  When the sum of the cumulative levies made pursuant 
139.12  to this subdivision and transfers made according to section 
139.13  123B.79, subdivision 6, equals an amount equal to the statutory 
139.14  operating debt of the district, the levy shall be discontinued. 
139.15     (b) The district must establish a special account in the 
139.16  general fund which shall be designated "appropriated fund 
139.17  balance reserve account for purposes of reducing statutory 
139.18  operating debt" on its books and records.  This account shall 
139.19  reflect the levy authorized pursuant to this subdivision.  The 
139.20  proceeds of this levy must be used only for cash flow 
139.21  requirements and must not be used to supplement district 
139.22  revenues or income for the purposes of increasing the district's 
139.23  expenditures or budgets. 
139.24     (c) Any district which is required to levy pursuant to this 
139.25  subdivision must certify the maximum levy allowable under 
139.26  section 126C.13, subdivision 2, in that same year. 
139.27     (d) Each district shall make permanent fund balance 
139.28  transfers so that the total statutory operating debt of the 
139.29  district is reflected in the general fund as of June 30, 1977. 
139.30     Sec. 8.  Minnesota Statutes 1998, section 126C.42, 
139.31  subdivision 2, is amended to read: 
139.32     Subd. 2.  [1983 OPERATING DEBT.] (1) Each year, a district 
139.33  may make an additional levy to eliminate a deficit in the net 
139.34  unappropriated operating funds of the district, determined as of 
139.35  June 30, 1983, and certified and adjusted by the commissioner.  
139.36  This levy may in each year be an amount not to exceed the amount 
140.1   raised by a levy of a net tax rate of 1.85 2.2 percent times the 
140.2   adjusted net tax capacity for taxes payable in 1991 2000 and 
140.3   thereafter of the district for the preceding year as determined 
140.4   by the commissioner.  However, the total amount of this levy for 
140.5   all years it is made must not exceed the lesser of (a) the 
140.6   amount of the deficit in the net unappropriated operating funds 
140.7   of the district as of June 30, 1983, or (b) the amount of the 
140.8   aid reduction, according to Laws 1981, Third Special Session 
140.9   chapter 2, article 2, section 2, but excluding clauses (l), (m), 
140.10  (n), (o), and (p), and Laws 1982, Third Special Session chapter 
140.11  1, article 3, section 6, to the district in fiscal year 1983.  
140.12  When the cumulative levies made pursuant to this subdivision 
140.13  equal the total amount permitted by this subdivision, the levy 
140.14  must be discontinued.  
140.15     (2) The proceeds of this levy must be used only for cash 
140.16  flow requirements and must not be used to supplement district 
140.17  revenues or income for the purposes of increasing the district's 
140.18  expenditures or budgets.  
140.19     (3) A district that levies pursuant to this subdivision 
140.20  must certify the maximum levy allowable under section 126C.13, 
140.21  subdivision 2, in that same year. 
140.22     Sec. 9.  Minnesota Statutes 1998, section 126C.46, is 
140.23  amended to read: 
140.24     126C.46 [ABATEMENT LEVY.] 
140.25     (a) Each year, a school district may levy an amount to 
140.26  replace the net revenue lost to abatements that have occurred 
140.27  under chapter 278, section 270.07, 375.192, or otherwise.  The 
140.28  maximum abatement levy is the sum of: 
140.29     (1) the amount of the net revenue loss determined under 
140.30  section 127A.49, subdivision 2, that is not paid in state aid 
140.31  including any aid amounts not paid due to proration; 
140.32     (2) the difference of (i) the amount of any abatements that 
140.33  have been reported by the county auditor for the first six 
140.34  months of the calendar year during which the abatement levy is 
140.35  certified that the district chooses to levy, (ii) less any 
140.36  amount actually levied under this clause that was certified in 
141.1   the previous calendar year for the first six months of the 
141.2   previous calendar year; and 
141.3      (3) an amount equal to any interest paid on abatement 
141.4   refunds.  
141.5      (b) A district may spread this levy over a period not to 
141.6   exceed three two years.  With the approval of the commissioner, 
141.7   a district may spread this levy over a period not to exceed 
141.8   three years. 
141.9      By July 15, the county auditor shall separately report the 
141.10  abatements that have occurred during the first six calendar 
141.11  months of that year to the commissioner and each district 
141.12  located within the county. 
141.13     Sec. 10.  Minnesota Statutes 1998, section 127A.45, 
141.14  subdivision 2, is amended to read: 
141.15     Subd. 2.  [DEFINITIONS.] (a) The term "other district 
141.16  receipts" means payments by county treasurers pursuant to 
141.17  section 276.10, apportionments from the school endowment fund 
141.18  pursuant to section 127A.33, apportionments by the county 
141.19  auditor pursuant to section 127A.34, subdivision 2, and payments 
141.20  to school districts by the commissioner of revenue pursuant to 
141.21  chapter 298.  
141.22     (b) The term "cumulative amount guaranteed" means the sum 
141.23  of the following: 
141.24     (1) one-third of the final adjustment payment according to 
141.25  subdivision 9; plus 
141.26     (2) the product of 
141.27     (i) (1) the cumulative disbursement percentage shown in 
141.28  subdivision 3; times 
141.29     (ii) (2) the sum of 
141.30     (i) 90 percent of the estimated aid and credit entitlements 
141.31  paid according to subdivision 13; plus 
141.32     (ii) 100 percent of the entitlements paid according to 
141.33  subdivisions 11 and 12; plus 
141.34     (iii) the other district receipts; plus 
141.35     (iv) the final adjustment payment according to subdivision 
141.36  9.  
142.1      (c) The term "payment date" means the date on which state 
142.2   payments to districts are made by the electronic funds transfer 
142.3   method.  If a payment date falls on a Saturday, a Sunday, or a 
142.4   weekday which is a legal holiday, the payment shall be made on 
142.5   the immediately following preceding business day.  The 
142.6   commissioner may make payments on dates other than those listed 
142.7   in subdivision 3, but only for portions of payments from any 
142.8   preceding payment dates which could not be processed by the 
142.9   electronic funds transfer method due to documented extenuating 
142.10  circumstances.  
142.11     Sec. 11.  Minnesota Statutes 1998, section 127A.45, 
142.12  subdivision 3, is amended to read: 
142.13     Subd. 3.  [PAYMENT DATES AND PERCENTAGES.] The commissioner 
142.14  shall pay to a district on the dates indicated an amount 
142.15  computed as follows:  the cumulative amount guaranteed minus the 
142.16  sum of (a) the district's other district receipts through the 
142.17  current payment, and (b) the aid and credit payments through the 
142.18  immediately preceding payment.  For purposes of this 
142.19  computation, the payment dates and the cumulative disbursement 
142.20  percentages are as follows:  
142.21                           Payment date               Percentage 
142.22  Payment 1    July 15:                                   2.25 4.6
142.23  Payment 2    July 30:                                   4.50 6.9 
142.24  Payment 3    August 15:  the greater of (a) the final        
142.25               adjustment for the prior fiscal year for
142.26               the state paid property tax credits
142.27               established in section 273.1392, or
142.28               (b) the amount needed to provide 6.75 15.2 percent
142.29  Payment 4    August 30:                                  9.0 17.4
142.30  Payment 5    September 15:                             12.75 19.6
142.31  Payment 6    September 30:                             16.50 21.8
142.32  Payment 7    October 15:  the greater of (a) one-half of
142.33               the final adjustment for the prior fiscal year
142.34               for all aid entitlements except state paid
142.35               property tax credits, or (b) the amount needed to
142.36               provide 20.75 24 percent
143.1   Payment 8    October 30:  the greater of (a) one-half of the
143.2                final adjustment for the prior fiscal year for all
143.3                aid entitlements except state paid property
143.4                tax credits, or (b) the amount needed
143.5                to provide 25.0 27.3 percent
143.6   Payment 9    November 15:                               31.0 33.3
143.7   Payment 10   November 30:                               37.0 39.3
143.8   Payment 11   December 15:                               40.0 42.3
143.9   Payment 12   December 30:                               43.0 45.3
143.10  Payment 13   January 15:                               47.25 49.5
143.11  Payment 14   January 30:                                51.5 53.8
143.12  Payment 15   February 15:                               56.0 58.3
143.13  Payment 16   February 28:                               60.5 62.8
143.14  Payment 17   March 15:                                 65.25 67.6
143.15  Payment 18   March 30:                                  70.0 72.3
143.16  Payment 19   April 15:                                  73.0 75.3
143.17  Payment 20   April 30:                                  79.0 81.3
143.18  Payment 21   May 15:                                    82.0 84.3
143.19  Payment 22   May 30:                                    90.0 92.3
143.20  Payment 23   June 20:                                  100.0
143.21     Sec. 12.  Minnesota Statutes 1998, section 127A.45, 
143.22  subdivision 4, is amended to read: 
143.23     Subd. 4.  [APPEAL.] (a) The commissioner, in consultation 
143.24  with the commissioner of finance, may revise the payment dates 
143.25  and percentages in subdivision 3 for a district if it is 
143.26  determined that: 
143.27     (1) there is an emergency; or 
143.28     (2) there are serious cash flow problems in the district 
143.29  that cannot be resolved by issuing warrants or other forms of 
143.30  indebtedness; or 
143.31     (3) the district is facing a serious cash flow problem 
143.32  because of an abatement that exceeds $100 times the resident 
143.33  pupil units of the district.  
143.34     (b) The commissioner shall establish a process and criteria 
143.35  for districts to appeal the payment dates and percentages 
143.36  established in subdivision 3.  
144.1      Sec. 13.  [LEVY AUTHORITY; CONTINUATION.] 
144.2      Subdivision 1.  [EXTENSION OF AUTHORITY.] The levy 
144.3   authority granted under Laws 1992, chapter 499, article 6, 
144.4   section 35, to the Lac qui Parle joint powers district is 
144.5   extended to independent school district No. 2853, Lac qui Parle 
144.6   Valley. 
144.7      Subd. 2.  [LEVY AUTHORITY.] For taxes payable in 2000 to 
144.8   2004, independent school district No. 2853, Lac qui Parle 
144.9   Valley, may levy an amount not to exceed $80,000 for costs 
144.10  associated with operating the cooperative secondary high school. 
144.11     Sec. 14.  [APPROPRIATIONS.] 
144.12     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
144.13  LEARNING.] The sums indicated in this section are appropriated 
144.14  from the general fund to the department of children, families, 
144.15  and learning for the fiscal years designated.  
144.16     Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
144.17  Minnesota Statutes, section 127A.49:  
144.18        $9,110,000    .....     2000 
144.19        $8,947,000    .....     2001 
144.20     The 2000 appropriation includes $1,352,000 for 1999 and 
144.21  $7,758,000 for 2000.  
144.22     The 2001 appropriation includes $861,000 for 2000 and 
144.23  $8,086,000 for 2001.  
144.24     Subd. 3.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
144.25  education aid according to Minnesota Statutes, sections 123B.40 
144.26  to 123B.48 and 123B.87: 
144.27       $10,996,000    .....      2000 
144.28       $11,878,000    .....      2001 
144.29     The 2000 appropriation includes $970,000 for 1999 and 
144.30  $10,026,000 for 2000. 
144.31     The 2001 appropriation includes $1,114,000 for 2000 and 
144.32  $10,764,000 for 2001.  
144.33     The department shall recompute the maximum allotments 
144.34  established on March 1, 1999, for fiscal year 2000 under 
144.35  Minnesota Statutes, sections 123B.42, subdivision 3, and 
144.36  123B.44, subdivision 6, to reflect the amount appropriated in 
145.1   this subdivision for fiscal year 2000. 
145.2      Subd. 4.  [CONSOLIDATION TRANSITION AID.] For districts 
145.3   consolidating under Minnesota Statutes, section 123A.485: 
145.4        $451,000       .....     2000
145.5        $375,000       .....     2001
145.6      The 2000 appropriation includes $113,000 for 1999 and 
145.7   $338,000 for 2000. 
145.8      The 2001 appropriation includes $37,000 for 2000 and 
145.9   $338,000 for 2001. 
145.10     Any balance in the first year does not cancel but is 
145.11  available in the second year. 
145.12     Subd. 5.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
145.13  pupil transportation aid under Minnesota Statutes, section 
145.14  123B.92, subdivision 9: 
145.15       $18,586,000    .....     2000 
145.16       $20,922,000    .....     2001 
145.17     The 2000 appropriation includes $1,848,000 for 2000 and 
145.18  $16,738,000 for 2001. 
145.19     The 2001 appropriation includes $1,860,000 for 2000 and 
145.20  $19,062,000 for 2001. 
145.21     Subd. 6.  [MINNESOTA LEARNING RESOURCE CENTER.] For a grant 
145.22  to A Chance To Grow/New Visions for start-up costs related to 
145.23  implementing the Minnesota learning resource center's 
145.24  comprehensive training program for education professionals 
145.25  charged with helping children acquire basic reading and math 
145.26  skills: 
145.27       $450,000     .....     2000
145.28     This appropriation is available until June 30, 2001.  This 
145.29  is a one-time appropriation.  
145.30     Subd. 7.  [HIV EDUCATION TRAINING SITES.] For regional 
145.31  training sites for HIV education in schools established 
145.32  according to Laws 1997, First Special Session chapter 4, article 
145.33  6, section 18: 
145.34       $458,000     .....     2000
145.35     Of this amount, $150,000 must be used for continued 
145.36  development of the existing sites; $150,000 for adding two 
146.1   additional training sites; $75,000 for coordination, technical 
146.2   assistance, evaluation, and contract management services for the 
146.3   sites; and $50,000 for a report and recommendations on the 
146.4   effectiveness of HIV education in public schools according to 
146.5   Minnesota Statutes, section 121A.23. 
146.6      This appropriation is available until June 30, 2001. 
146.7      Subd. 8.  [MAGNET SCHOOL GRANTS.] For a magnet school grant:
146.8        $50,000     .....     2000 
146.9      This appropriation is for a planning grant for an urban 
146.10  agricultural high school for curriculum, design, coordination 
146.11  with the state's graduation standards, demographic research, 
146.12  development of partnerships, site acquisition, market assessment 
146.13  of student interest, collaboration with the local municipality 
146.14  and school district on any proposed site prior to acquisition, 
146.15  and facility predesign purposes. 
146.16     This appropriation is available until June 30, 2001. 
146.17     Subd. 9.  [ONE ROOM SCHOOLHOUSE.] For a grant to 
146.18  independent school district No. 690, Warroad, to operate the 
146.19  Angle Inlet School: 
146.20       $25,000     .....     2000
146.21       $25,000     .....     2001
146.22     Sec. 15.  [REPEALER.] 
146.23     Minnesota Statutes 1998, section 127A.45, subdivision 5, is 
146.24  repealed. 
146.25     Sec. 16.  [EFFECTIVE DATES.] 
146.26     Section 4 is effective December 31, 1999.  Sections 10, 11, 
146.27  and 12 are effective for the payment of state aids for fiscal 
146.28  year 2000 and later.  Section 13 is effective for taxes payable 
146.29  in 2000. 
146.30                             ARTICLE 7 
146.31                         NUTRITION PROGRAMS 
146.32     Section 1.  [124D.1155] [FAST BREAK TO LEARNING GRANTS.] 
146.33     Subdivision 1.  [ESTABLISHMENT.] A grant program is 
146.34  established to ensure that all children have an opportunity to 
146.35  eat a nutritious breakfast each school day and that barriers 
146.36  such as the social stigma of poverty, or inadequate facilities 
147.1   or transportation do not deny student access to nutritious food. 
147.2      Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
147.3   public or nonpublic elementary school that participates in the 
147.4   federal school breakfast and lunch programs.  The commissioner 
147.5   must give first priority to schools where at least 33 percent of 
147.6   the lunches the school served to children during the preceding 
147.7   school year were provided free or at a reduced price.  The 
147.8   commissioner must give second priority to all other public or 
147.9   nonpublic elementary schools. 
147.10     Subd. 3.  [APPLICATION PROCESS.] To obtain a grant to 
147.11  receive reimbursement for providing breakfasts to all children, 
147.12  a public or nonpublic elementary school must submit an 
147.13  application to the commissioner in the form and manner the 
147.14  commissioner prescribes.  The application must describe how the 
147.15  applicant will encourage all children in the school to 
147.16  participate in the breakfast program.  The applicant also must 
147.17  demonstrate to the commissioner that the applicant will collect 
147.18  a $1 local funding match for every $3 of state funding the 
147.19  applicant receives.  The applicant must raise the local match 
147.20  either by charging student households not eligible for federal 
147.21  free or reduced price meals or by soliciting funds from 
147.22  nonpublic sources.  The applicant can determine the method for 
147.23  charging student households for school breakfast, but must 
147.24  consider the household's ability to pay.  The applicant cannot 
147.25  charge student households for school breakfast so that the total 
147.26  charges exceed the difference between the revenue from federal 
147.27  and state aids and the actual cost of providing the breakfast.  
147.28  The commissioner may require additional information from the 
147.29  applicant. 
147.30     Subd. 4.  [GRANT AWARDS.] The commissioner shall award 
147.31  grants to the 41 grant recipients under Laws 1997, First Special 
147.32  Session chapter 4, article 6, section 19, and then according to 
147.33  need as determined by the percentage of students enrolled in the 
147.34  school who are eligible for federal free or reduced price meals 
147.35  and that meet the requirements of subdivisions 2 and 3 until 
147.36  funding under this section is expended.  The commissioner shall 
148.1   determine the amount of the grant using average statewide 
148.2   statistics and individual school statistics adjusted for other 
148.3   state and federal reimbursements.  Grant recipients must use the 
148.4   proceeds to provide breakfast to school children every day 
148.5   school is in session. 
148.6      Subd. 5.  [EXPIRATION.] This section expires June 30, 2001. 
148.7      Sec. 2.  [APPROPRIATIONS.] 
148.8      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
148.9   LEARNING.] The sums indicated in this section are appropriated 
148.10  from the general fund to the department of children, families, 
148.11  and learning for the fiscal years designated. 
148.12     Subd. 2.  [SCHOOL LUNCH AID.] (a) For school lunch aid 
148.13  according to Minnesota Statutes, section 124D.111, and Code of 
148.14  Federal Regulations, title 7, section 210.17, and for school 
148.15  milk aid according to Minnesota Statutes, section 124D.118:  
148.16       $8,200,000     .....     2000 
148.17       $8,200,000     .....     2001 
148.18     (b) Any unexpended balance remaining from the 
148.19  appropriations in this subdivision shall be prorated among 
148.20  participating schools based on the number of free, reduced, and 
148.21  fully paid federally reimbursable student lunches served during 
148.22  that school year.  
148.23     (c) If the appropriation amount attributable to either year 
148.24  is insufficient, the rate of payment for each fully paid student 
148.25  lunch shall be reduced and the aid for that year shall be 
148.26  prorated among participating schools so as not to exceed the 
148.27  total authorized appropriation for that year.  
148.28     (d) Not more than $800,000 of the amount appropriated each 
148.29  year may be used for school milk aid. 
148.30     Subd. 3.  [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer 
148.31  food service replacement aid under Minnesota Statutes, section 
148.32  124D.119: 
148.33       $150,000       .....     2000 
148.34       $150,000       .....     2001 
148.35     Subd. 4.  [FAST BREAK TO LEARNING GRANTS.] For fast break 
148.36  to learning grants under Minnesota Statutes, section 124D.1155: 
149.1        $2,500,000       .....     2000
149.2        $2,500,000       .....     2001
149.3      Any balance in the first year does not cancel but is 
149.4   available in the second year. 
149.5      Subd. 5.  [SCHOOL BREAKFAST.] To operate the school 
149.6   breakfast program according to Minnesota Statutes, sections 
149.7   124D.115 and 124D.117: 
149.8        $456,000       .....     2000
149.9        $456,000       .....     2001
149.10     If the appropriation amount attributable to either year is 
149.11  insufficient, the rate of payment for each fully paid student 
149.12  breakfast shall be reduced and the aid for that year shall be 
149.13  prorated among participating schools so as not to exceed the 
149.14  total authorized appropriation for that year.  Any unexpended 
149.15  balance remaining shall be used to subsidize the payments made 
149.16  for school lunch aid per Minnesota Statutes, section 124D.111.  
149.17     Up to one percent of the program funding can be used by the 
149.18  department of children, families, and learning for technical and 
149.19  administrative assistance. 
149.20     Sec. 3.  [REPEALER.] 
149.21     Minnesota Statutes 1998, sections 124D.112; 124D.113; and 
149.22  124D.116, are repealed. 
149.23                             ARTICLE 8
149.24                             LIBRARIES
149.25     Section 1.  Laws 1997, First Special Session chapter 4, 
149.26  article 8, section 4, is amended to read: 
149.27     Sec. 4.  [LIBRARY PILOT PROJECT.] 
149.28     Subdivision 1.  [ESTABLISHMENT.] Notwithstanding law to the 
149.29  contrary and subject to approvals in subdivision 2, a public 
149.30  library may operate as a pilot library project jointly with the 
149.31  school library at Nashwauk-Keewatin high school, located in the 
149.32  city of Nashwauk.  The public library is established to serve 
149.33  persons within the boundaries of independent school district No. 
149.34  319, except the city of Keewatin. 
149.35     Subd. 2.  [APPROVALS.] Operation of the public library is 
149.36  contingent upon a resolution approved by the governing bodies of 
150.1   cities, towns, and unorganized townships within the geographical 
150.2   boundaries of independent school district No. 319, except for 
150.3   the city of Keewatin, entering into a joint powers agreement 
150.4   under Minnesota Statutes 1998, section 471.59, to accomplish the 
150.5   purpose of this section.  The joint powers agreement must 
150.6   provide for continuing the library project if one party to the 
150.7   agreement withdraws from the agreement.  For the purposes of 
150.8   this subdivision, the Itasca county board is designated as the 
150.9   governing body for the unorganized townships. 
150.10     Subd. 3.  [BOARD; APPOINTMENTS.] The resolution joint 
150.11  powers agreement in subdivision 2 shall provide for a library 
150.12  board of five seven members as follows:  two members appointed 
150.13  by the school board of independent school district No. 319, one 
150.14  member appointed by each town board located within independent 
150.15  school district No. 319 boundaries, one member appointed by the 
150.16  council of the city of Nashwauk, and one member appointed by the 
150.17  Itasca county board to represent the unorganized towns within 
150.18  the school district territory. 
150.19     Subd. 4.  [BOARD TERMS; COMPENSATION.] The library board 
150.20  members shall serve for the term of the pilot program library 
150.21  project.  An appointing authority may remove for misconduct or 
150.22  neglect any member it has appointed to the board and may replace 
150.23  that member by appointment.  Board members shall receive no 
150.24  compensation for their services but may be reimbursed for actual 
150.25  and necessary travel expenses incurred in the discharge of 
150.26  library board duties and activities. 
150.27     Subd. 5.  [FUNDING.] For taxes payable in 1998 and, 1999, 
150.28  2000, 2001, 2002, and 2003 only, the library board may levy a 
150.29  tax in an amount up to $25,000 annually on property located 
150.30  within the boundaries of independent school district No. 319, 
150.31  except the city of Keewatin.  The Itasca county auditor shall 
150.32  collect the tax and distribute it to the library board.  The 
150.33  money may be used for library staff and for the purchase of 
150.34  library materials, including computer software.  The levy must 
150.35  also fund the amount necessary to receive bookmobile services 
150.36  from the Arrowhead regional library system.  For taxes payable 
151.1   in 1998 and, 1999, 2000, 2001, 2002, and 2003 only, the county 
151.2   may not levy under Minnesota Statutes, section 134.07, for the 
151.3   areas described in this section. 
151.4      Subd. 6.  [BUILDING.] The school district shall provide the 
151.5   physical space and costs associated with operating the library 
151.6   including, but not limited to, heat, light, telephone service, 
151.7   and maintenance. 
151.8      Subd. 7.  [ORGANIZATION.] Immediately after appointment, 
151.9   the library board shall organize by electing one of its number 
151.10  as president and one as secretary, and it may appoint other 
151.11  officers it finds necessary. 
151.12     Subd. 8.  [DUTIES.] The library board shall adopt bylaws 
151.13  and regulations for the library and for the conduct of its 
151.14  business as may be expedient and conformable to law.  It shall 
151.15  have exclusive control of the expenditure of all money collected 
151.16  for it.  The library board shall appoint a qualified library 
151.17  director and other staff, establish the compensation of 
151.18  employees, and remove any of them for cause.  The library board 
151.19  may contract with the school board, the regional library board, 
151.20  or the city in which the library is located to provide 
151.21  personnel, fiscal, or administrative services.  The contract 
151.22  shall state the personnel, fiscal, and administrative services 
151.23  and payments to be provided by each party. 
151.24     Subd. 9.  [CRITERIA.] The library shall meet all 
151.25  requirements in statutes and rules applicable to public 
151.26  libraries and school media centers.  A media supervisor licensed 
151.27  by the board of teaching may be the director of the library.  
151.28  Public parking, restrooms, drinking water, and other necessities 
151.29  shall be easily accessible to library patrons. 
151.30     Subd. 10.  [REPORT.] The library board shall report to the 
151.31  department of children, families, and learning by February 1, 
151.32  1999, about the costs of providing the library service and the 
151.33  number of patrons served. 
151.34     Subd. 11.  [EXPIRATION.] This section expires January 31, 
151.35  2000. 
151.36     Sec. 2.  Laws 1997, First Special Session chapter 4, 
152.1   article 9, section 7, subdivision 2, is amended to read: 
152.2      Subd. 2.  [APPLICATION; ELIGIBILITY.] The commissioner of 
152.3   children, families, and learning shall establish a process and 
152.4   application forms for library sites to apply for grant funds.  
152.5   Libraries must describe how they will cooperate with schools.  
152.6   An applicant must submit a technology plan with the 
152.7   application.  Eligible applicants must, at a minimum, describe 
152.8   how the proposed project is consistent with the technology plan; 
152.9   describe how it ensures interoperability of hardware, software, 
152.10  and telecommunication and meets existing Minnesota technical 
152.11  standards appropriate to the project; identify the specific site 
152.12  needs that the project will address; define the project's 
152.13  expected outcomes; and provide the source, type, and amounts of 
152.14  all matching funds.  To be eligible for a site-based technology 
152.15  learning grant, a library site must: 
152.16     (1) be a school library, a public library, or a partnership 
152.17  of public and school libraries or be a publicly funded or 
152.18  nonprofit library in partnership with school libraries, public 
152.19  libraries, or public library systems; 
152.20     (2) be a member of a regional multicounty, multitype 
152.21  library cooperation system; 
152.22     (3) have each dollar of grant money matched by at least $1 
152.23  of library site money, including in-kind contributions; 
152.24     (3) (4) agree to disseminate and share information about 
152.25  its project; 
152.26     (4) (5) provide a benefit to the greater community; and 
152.27     (5) (6) maintain any ongoing costs of support for the 
152.28  technology project after the initial funding under the grant 
152.29  program. 
152.30     Sec. 3.  Laws 1998, chapter 398, article 9, section 7, is 
152.31  amended to read: 
152.32     Sec. 7.  [DATABASE ACCESS PROGRAM FOR PUBLIC LIBRARIES AND 
152.33  SCHOOL MEDIA CENTERS.] 
152.34     Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
152.35  children, families, and learning and the director of the higher 
152.36  education services office shall establish a program to provide 
153.1   statewide licenses to commercial electronic databases of 
153.2   periodicals, encyclopedias, and associated reference materials 
153.3   for school media centers and, public libraries, state government 
153.4   agency libraries, and public or private college or university 
153.5   libraries.  The commissioner, in consultation with Minitex and 
153.6   in cooperation with the Library Planning Task Force, shall 
153.7   solicit proposals for access licenses to commercial vendors of 
153.8   the databases.  Responses to those proposals shall be evaluated 
153.9   by staff of the office of library development and services in 
153.10  the department of children, families, and learning, Minitex 
153.11  staff, and a representative panel of librarians and school media 
153.12  specialists and public librarians. 
153.13     Subd. 2.  [ELIGIBILITY.] Access to the selected databases 
153.14  shall be made available to a school or school district that is a 
153.15  member of a multicounty, multitype library system as defined in 
153.16  Minnesota Statutes, section 134.001, subdivision 6, or a public 
153.17  library as defined in Minnesota Statutes, section 134.001, 
153.18  subdivision 2, that is a member of a multicounty, multitype 
153.19  library system school media center or library that is eligible 
153.20  to participate in MnLink.  With appropriate authentication any 
153.21  user of an eligible library a school media center or library 
153.22  that is eligible to participate in MnLink may have access to the 
153.23  databases from a remote site. 
153.24     Subd. 3.  [RESOURCE GRANTS.] Graduation rule resource 
153.25  grants are available for the purposes of this section. 
153.26     Sec. 4.  [APPROPRIATIONS.] 
153.27     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
153.28  LEARNING.] The sums indicated in this section are appropriated 
153.29  from the general fund to the department of children, families, 
153.30  and learning for the fiscal years designated.  
153.31     Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
153.32  according to Minnesota Statutes, sections 134.32 to 134.35: 
153.33       $8,495,000      .....     2000 
153.34       $8,570,000      .....     2001 
153.35     The 2000 appropriation includes $782,000 for 1999 and 
153.36  $7,713,000 for 2000.  
154.1      The 2001 appropriation includes $857,000 for 2000 and 
154.2   $7,713,000 for 2001.  
154.3      Subd. 3.  [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 
154.4   grants according to Minnesota Statutes, sections 134.353 and 
154.5   134.354, to multicounty, multitype library systems: 
154.6        $903,000       .....     2000 
154.7        $903,000       .....     2001 
154.8      The 2000 appropriation includes $90,000 for 1999 and 
154.9   $813,000 for 2000.  
154.10     The 2001 appropriation includes $90,000 for 2000 and 
154.11  $813,000 for 2001. 
154.12     Subd. 4.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
154.13  grants to regional public library systems under Minnesota 
154.14  Statutes, section 125B.20, subdivision 3: 
154.15       $1,200,000     .....     2000 
154.16       $1,200,000     .....     2001 
154.17     Any balance in the first year does not cancel but is 
154.18  available in the second year. 
154.19     Subd. 5.  [LIBRARY FOR THE BLIND.] For compact shelving, 
154.20  technology, and staffing for the Minnesota library for the blind 
154.21  and physically handicapped: 
154.22       $212,000     .....     2000 
154.23     Subd. 6.  [DATABASE ACCESS PROGRAM.] For the database 
154.24  access program for public libraries and school media centers 
154.25  under section 3: 
154.26         $250,000     .....     2000 
154.27         $250,000     .....     2001 
154.28     Sec. 5.  [REPEALER.] 
154.29     Minnesota Statutes 1998, section 134.155, is repealed. 
154.30                             ARTICLE 9
154.31                          EDUCATION POLICY
154.32     Section 1.  Minnesota Statutes 1998, section 13.46, 
154.33  subdivision 2, is amended to read: 
154.34     Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
154.35  a statute specifically provides a different classification, data 
154.36  on individuals collected, maintained, used, or disseminated by 
155.1   the welfare system is private data on individuals, and shall not 
155.2   be disclosed except:  
155.3      (1) according to section 13.05; 
155.4      (2) according to court order; 
155.5      (3) according to a statute specifically authorizing access 
155.6   to the private data; 
155.7      (4) to an agent of the welfare system, including a law 
155.8   enforcement person, attorney, or investigator acting for it in 
155.9   the investigation or prosecution of a criminal or civil 
155.10  proceeding relating to the administration of a program; 
155.11     (5) to personnel of the welfare system who require the data 
155.12  to determine eligibility, amount of assistance, and the need to 
155.13  provide services of additional programs to the individual; 
155.14     (6) to administer federal funds or programs; 
155.15     (7) between personnel of the welfare system working in the 
155.16  same program; 
155.17     (8) the amounts of cash public assistance and relief paid 
155.18  to welfare recipients in this state, including their names, 
155.19  social security numbers, income, addresses, and other data as 
155.20  required, upon request by the department of revenue to 
155.21  administer the property tax refund law, supplemental housing 
155.22  allowance, early refund of refundable tax credits, and the 
155.23  income tax.  "Refundable tax credits" means the dependent care 
155.24  credit under section 290.067, the Minnesota working family 
155.25  credit under section 290.0671, the property tax refund under 
155.26  section 290A.04, and, if the required federal waiver or waivers 
155.27  are granted, the federal earned income tax credit under section 
155.28  32 of the Internal Revenue Code; 
155.29     (9) between the department of human services and the 
155.30  Minnesota department of economic security for the purpose of 
155.31  monitoring the eligibility of the data subject for reemployment 
155.32  insurance, for any employment or training program administered, 
155.33  supervised, or certified by that agency, for the purpose of 
155.34  administering any rehabilitation program, whether alone or in 
155.35  conjunction with the welfare system, or to monitor and evaluate 
155.36  the statewide Minnesota family investment program by exchanging 
156.1   data on recipients and former recipients of food stamps, cash 
156.2   assistance under chapter 256, 256D, 256J, or 256K, child care 
156.3   assistance under chapter 119B, or medical programs under chapter 
156.4   256B, 256D, or 256L; 
156.5      (10) to appropriate parties in connection with an emergency 
156.6   if knowledge of the information is necessary to protect the 
156.7   health or safety of the individual or other individuals or 
156.8   persons; 
156.9      (11) data maintained by residential programs as defined in 
156.10  section 245A.02 may be disclosed to the protection and advocacy 
156.11  system established in this state according to Part C of Public 
156.12  Law Number 98-527 to protect the legal and human rights of 
156.13  persons with mental retardation or other related conditions who 
156.14  live in residential facilities for these persons if the 
156.15  protection and advocacy system receives a complaint by or on 
156.16  behalf of that person and the person does not have a legal 
156.17  guardian or the state or a designee of the state is the legal 
156.18  guardian of the person; 
156.19     (12) to the county medical examiner or the county coroner 
156.20  for identifying or locating relatives or friends of a deceased 
156.21  person; 
156.22     (13) data on a child support obligor who makes payments to 
156.23  the public agency may be disclosed to the higher education 
156.24  services office to the extent necessary to determine eligibility 
156.25  under section 136A.121, subdivision 2, clause (5); 
156.26     (14) participant social security numbers and names 
156.27  collected by the telephone assistance program may be disclosed 
156.28  to the department of revenue to conduct an electronic data match 
156.29  with the property tax refund database to determine eligibility 
156.30  under section 237.70, subdivision 4a; 
156.31     (15) the current address of a recipient of aid to families 
156.32  with dependent children or Minnesota family investment 
156.33  program-statewide may be disclosed to law enforcement officers 
156.34  who provide the name of the recipient and notify the agency that:
156.35     (i) the recipient: 
156.36     (A) is a fugitive felon fleeing to avoid prosecution, or 
157.1   custody or confinement after conviction, for a crime or attempt 
157.2   to commit a crime that is a felony under the laws of the 
157.3   jurisdiction from which the individual is fleeing; or 
157.4      (B) is violating a condition of probation or parole imposed 
157.5   under state or federal law; 
157.6      (ii) the location or apprehension of the felon is within 
157.7   the law enforcement officer's official duties; and 
157.8      (iii)  the request is made in writing and in the proper 
157.9   exercise of those duties; 
157.10     (16) the current address of a recipient of general 
157.11  assistance or general assistance medical care may be disclosed 
157.12  to probation officers and corrections agents who are supervising 
157.13  the recipient and to law enforcement officers who are 
157.14  investigating the recipient in connection with a felony level 
157.15  offense; 
157.16     (17) information obtained from food stamp applicant or 
157.17  recipient households may be disclosed to local, state, or 
157.18  federal law enforcement officials, upon their written request, 
157.19  for the purpose of investigating an alleged violation of the 
157.20  Food Stamp Act, according to Code of Federal Regulations, title 
157.21  7, section 272.1(c); 
157.22     (18) the address, social security number, and, if 
157.23  available, photograph of any member of a household receiving 
157.24  food stamps shall be made available, on request, to a local, 
157.25  state, or federal law enforcement officer if the officer 
157.26  furnishes the agency with the name of the member and notifies 
157.27  the agency that:  
157.28     (i) the member: 
157.29     (A) is fleeing to avoid prosecution, or custody or 
157.30  confinement after conviction, for a crime or attempt to commit a 
157.31  crime that is a felony in the jurisdiction the member is 
157.32  fleeing; 
157.33     (B) is violating a condition of probation or parole imposed 
157.34  under state or federal law; or 
157.35     (C) has information that is necessary for the officer to 
157.36  conduct an official duty related to conduct described in subitem 
158.1   (A) or (B); 
158.2      (ii) locating or apprehending the member is within the 
158.3   officer's official duties; and 
158.4      (iii) the request is made in writing and in the proper 
158.5   exercise of the officer's official duty; 
158.6      (19) certain information regarding child support obligors 
158.7   who are in arrears may be made public according to section 
158.8   518.575; 
158.9      (20) data on child support payments made by a child support 
158.10  obligor and data on the distribution of those payments excluding 
158.11  identifying information on obligees may be disclosed to all 
158.12  obligees to whom the obligor owes support, and data on the 
158.13  enforcement actions undertaken by the public authority, the 
158.14  status of those actions, and data on the income of the obligor 
158.15  or obligee may be disclosed to the other party; 
158.16     (21) data in the work reporting system may be disclosed 
158.17  under section 256.998, subdivision 7; 
158.18     (22) to the department of children, families, and learning 
158.19  for the purpose of matching department of children, families, 
158.20  and learning student data with public assistance data to 
158.21  determine students eligible for free and reduced price meals, 
158.22  meal supplements, and free milk according to United States Code, 
158.23  title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to 
158.24  produce accurate numbers of students receiving aid to families 
158.25  with dependent children or Minnesota family investment 
158.26  program-statewide as required by section 126C.06; to allocate 
158.27  federal and state funds that are distributed based on income of 
158.28  the student's family; and to verify receipt of energy assistance 
158.29  for the telephone assistance plan; 
158.30     (23) the current address and telephone number of program 
158.31  recipients and emergency contacts may be released to the 
158.32  commissioner of health or a local board of health as defined in 
158.33  section 145A.02, subdivision 2, when the commissioner or local 
158.34  board of health has reason to believe that a program recipient 
158.35  is a disease case, carrier, suspect case, or at risk of illness, 
158.36  and the data are necessary to locate the person; 
159.1      (24) to other state agencies, statewide systems, and 
159.2   political subdivisions of this state, including the attorney 
159.3   general, and agencies of other states, interstate information 
159.4   networks, federal agencies, and other entities as required by 
159.5   federal regulation or law for the administration of the child 
159.6   support enforcement program; 
159.7      (25) to personnel of public assistance programs as defined 
159.8   in section 256.741, for access to the child support system 
159.9   database for the purpose of administration, including monitoring 
159.10  and evaluation of those public assistance programs; or 
159.11     (26) to monitor and evaluate the statewide Minnesota family 
159.12  investment program by exchanging data between the departments of 
159.13  human services and children, families, and learning, on 
159.14  recipients and former recipients of food stamps, cash assistance 
159.15  under chapter 256, 256D, 256J, or 256K, child care assistance 
159.16  under chapter 119B, or medical programs under chapter 256B, 
159.17  256D, or 256L.  
159.18     (b) Information on persons who have been treated for drug 
159.19  or alcohol abuse may only be disclosed according to the 
159.20  requirements of Code of Federal Regulations, title 42, sections 
159.21  2.1 to 2.67. 
159.22     (c) Data provided to law enforcement agencies under 
159.23  paragraph (a), clause (15), (16), (17), or (18), or paragraph 
159.24  (b), are investigative data and are confidential or protected 
159.25  nonpublic while the investigation is active.  The data are 
159.26  private after the investigation becomes inactive under section 
159.27  13.82, subdivision 5, paragraph (a) or (b). 
159.28     (d) Mental health data shall be treated as provided in 
159.29  subdivisions 7, 8, and 9, but is not subject to the access 
159.30  provisions of subdivision 10, paragraph (b). 
159.31     Sec. 2.  Minnesota Statutes 1998, section 120A.40, is 
159.32  amended to read: 
159.33     120A.40 [SCHOOL CALENDAR.] 
159.34     (a) Except for learning programs during summer, flexible 
159.35  learning year programs authorized under sections 124D.12 to 
159.36  124D.127, and learning year programs under section 124D.128, a 
160.1   district must not commence an elementary or secondary school 
160.2   year prior to before September 1, except as provided under 
160.3   paragraph (b).  Days which are devoted to teachers' workshops 
160.4   may be held before September 1.  Districts that enter into 
160.5   cooperative agreements are encouraged to adopt similar school 
160.6   calendars.  
160.7      (b) A district may begin the school year on any day before 
160.8   September 1 to accommodate a construction or remodeling project 
160.9   of $400,000 or more affecting a district school facility. 
160.10     Sec. 3.  Minnesota Statutes 1998, section 120B.30, 
160.11  subdivision 1, is amended to read: 
160.12     Subdivision 1.  [STATEWIDE TESTING.] (a) The commissioner, 
160.13  with advice from experts with appropriate technical 
160.14  qualifications and experience and stakeholders, shall include in 
160.15  the comprehensive assessment system, for each grade level to be 
160.16  tested, a single statewide norm-referenced or 
160.17  criterion-referenced test, or a combination of a norm-referenced 
160.18  and a criterion-referenced test, which shall be highly 
160.19  correlated with the state's graduation standards and 
160.20  administered annually to all students in the third, fifth, and 
160.21  eighth grades.  The commissioner shall establish one or more 
160.22  months during which schools shall administer the tests to 
160.23  students each school year.  Only Minnesota basic skills tests in 
160.24  reading, mathematics, and writing shall fulfill students' 
160.25  testing requirements for a passing state notation.  
160.26     (b) In addition, at the secondary level, districts shall 
160.27  assess student performance in all required learning areas and 
160.28  selected required standards within each area of the profile of 
160.29  learning.  The testing instruments and testing process shall be 
160.30  determined by the commissioner.  The results shall be aggregated 
160.31  at the site and district level.  The testing shall be 
160.32  administered beginning in the 1999-2000 school year and 
160.33  thereafter. 
160.34     (c) The comprehensive assessment system shall include an 
160.35  evaluation of school site and school district performance levels 
160.36  during the 1997-1998 school year and thereafter using an 
161.1   established performance baseline developed from students' test 
161.2   scores under this section that records, at a minimum, students' 
161.3   unweighted mean test scores in each tested subject, a second 
161.4   performance baseline that reports, at a minimum, the same 
161.5   unweighted mean test scores of only those students enrolled in 
161.6   the school by January 1 of the previous school year, and a third 
161.7   performance baseline that reports the same unweighted test 
161.8   scores of all students except those students receiving limited 
161.9   English proficiency instruction.  The evaluation also shall 
161.10  record separately, in proximity to the performance baselines, 
161.11  the percentages of students who are eligible to receive a free 
161.12  or reduced price school meal, demonstrate limited English 
161.13  proficiency, or are eligible to receive special education 
161.14  services. 
161.15     (d) In addition to the testing and reporting requirements 
161.16  under paragraphs (a), (b), and (c), the commissioner, in 
161.17  consultation with the state board of education, shall include 
161.18  the following components in the statewide educational 
161.19  accountability and public reporting system: 
161.20     (1) uniform statewide testing of all third, fifth, eighth, 
161.21  and post-eighth grade students with exemptions, only with parent 
161.22  or guardian approval, from the testing requirement only for 
161.23  those very few students for whom the student's individual 
161.24  education plan team under sections 125A.05 and 125A.06, 
161.25  determines that the student is incapable of taking a statewide 
161.26  test, or a limited English proficiency student under section 
161.27  124D.59, subdivision 2, if the student has been in the United 
161.28  States for fewer than 12 months and for whom special language 
161.29  barriers exist, such as the student's native language does not 
161.30  have a written form or the district does not have access to 
161.31  appropriate interpreter services for the student's native 
161.32  language; 
161.33     (2) educational indicators that can be aggregated and 
161.34  compared across school districts and across time on a statewide 
161.35  basis; 
161.36     (3) students' scores on the American College Test; 
162.1      (4) participation in the National Assessment of Educational 
162.2   Progress so that the state can benchmark its performance against 
162.3   the nation and other states, and, where possible, against other 
162.4   countries, and contribute to the national effort to monitor 
162.5   achievement; and 
162.6      (5) basic skills and advanced competencies connecting 
162.7   teaching and learning to high academic standards, assessment, 
162.8   and transitions to citizenship and employment. 
162.9      (e) Districts must report exemptions under paragraph (d), 
162.10  clause (1), to the commissioner consistent with a format 
162.11  provided by the commissioner. 
162.12     Sec. 4.  Minnesota Statutes 1998, section 120B.35, is 
162.13  amended to read: 
162.14     120B.35 [STUDENT ACHIEVEMENT LEVELS.] 
162.15     (a) Each school year, a school district must determine if 
162.16  the student achievement levels at each school site meet state 
162.17  expectations.  If student achievement levels at a school site do 
162.18  not meet state expectations for two out of three consecutive 
162.19  school years, beginning with the 1999-2000 2000-2001 school 
162.20  year, the district must work with the school site to adopt a 
162.21  plan to raise student achievement levels to state expectations.  
162.22  The legislature will determine state expectations after 
162.23  receiving a recommendation from the commissioner of children, 
162.24  families, and learning.  The commissioner must submit its 
162.25  recommendations to the legislature by December 15, 1998 January 
162.26  15, 2000.  
162.27     (b) The department must assist the district and the school 
162.28  site in developing a plan to improve student achievement.  The 
162.29  plan must include parental involvement components. 
162.30     Sec. 5.  Minnesota Statutes 1998, section 121A.61, 
162.31  subdivision 1, is amended to read: 
162.32     Subdivision 1.  [REQUIRED POLICY.] Each school board must 
162.33  adopt a written districtwide school discipline policy which 
162.34  includes written rules of conduct for students, minimum 
162.35  consequences for violations of the rules, and grounds and 
162.36  procedures for removal of a student from class.  The policy must 
163.1   be developed in consultation with the participation of 
163.2   administrators, teachers, employees, pupils, parents, community 
163.3   members, law enforcement agencies, county attorney offices, 
163.4   social service agencies, and such other individuals or 
163.5   organizations as the board determines appropriate.  A school 
163.6   site council may adopt additional provisions to the policy 
163.7   subject to the approval of the school board. 
163.8      Sec. 6.  [121A.68] [CRISIS MANAGEMENT POLICY.] 
163.9      Subdivision 1.  [MODEL POLICY.] By December 1, 1999, the 
163.10  commissioner shall maintain and make available to school boards 
163.11  a model crisis management policy. 
163.12     Subd. 2.  [SCHOOL DISTRICT POLICY.] By July 1, 2000, a 
163.13  school board must adopt a district crisis management policy to 
163.14  address potential violent crisis situations in the district.  
163.15  The policy must be developed in consultation with 
163.16  administrators, teachers, employees, students, parents, 
163.17  community members, law enforcement agencies, county attorney 
163.18  offices, social service agencies, and any other appropriate 
163.19  individuals or organizations. 
163.20     Sec. 7.  Minnesota Statutes 1998, section 122A.09, 
163.21  subdivision 4, is amended to read: 
163.22     Subd. 4.  [LICENSE AND RULES.] (a) The board must adopt 
163.23  rules to license public school teachers and interns subject to 
163.24  chapter 14. 
163.25     (b) The board must adopt rules requiring a person to 
163.26  successfully complete a skills examination in reading, writing, 
163.27  and mathematics as a requirement for initial teacher licensure.  
163.28  Such rules must require college and universities offering a 
163.29  board approved teacher preparation program to provide remedial 
163.30  assistance to persons who did not achieve a qualifying score on 
163.31  the skills examination, including those for whom English is a 
163.32  second language. 
163.33     (c) The board must adopt rules to approve teacher 
163.34  preparation programs.  The board, upon the request of a 
163.35  post-secondary student preparing for teacher licensure or a 
163.36  licensed graduate of a teacher preparation program shall assist 
164.1   in resolving a dispute between the person and a post-secondary 
164.2   institution providing a teacher preparation program when the 
164.3   dispute involves an institution's recommendation for licensure 
164.4   affecting the person or the person's credentials.  At the 
164.5   board's discretion, assistance may include the application of 
164.6   chapter 14. 
164.7      (d) The board must provide the leadership and shall adopt 
164.8   rules for the redesign of teacher education programs to 
164.9   implement a research based, results-oriented curriculum that 
164.10  focuses on the skills teachers need in order to be effective.  
164.11  The board shall implement new systems of teacher preparation 
164.12  program evaluation to assure program effectiveness based on 
164.13  proficiency of graduates in demonstrating attainment of program 
164.14  outcomes. 
164.15     (e) The board must adopt rules requiring successful 
164.16  completion of an examination of general pedagogical knowledge 
164.17  and examinations of licensure-specific teaching skills.  The 
164.18  rules shall be effective on the dates determined by the board, 
164.19  but not later than July 1, 1999 September 1, 2001. 
164.20     (f) The board must adopt rules requiring teacher educators 
164.21  to work directly with elementary or secondary school teachers in 
164.22  elementary or secondary schools to obtain periodic exposure to 
164.23  the elementary or secondary teaching environment. 
164.24     (g) The board must grant licenses to interns and to 
164.25  candidates for initial licenses. 
164.26     (h) The board must design and implement an assessment 
164.27  system which requires a candidate for an initial license and 
164.28  first continuing license to demonstrate the abilities necessary 
164.29  to perform selected, representative teaching tasks at 
164.30  appropriate levels. 
164.31     (i) The board must receive recommendations from local 
164.32  committees as established by the board for the renewal of 
164.33  teaching licenses. 
164.34     (j) The board must grant life licenses to those who qualify 
164.35  according to requirements established by the board, and suspend 
164.36  or revoke licenses pursuant to sections 122A.20 and 214.10.  The 
165.1   board must not establish any expiration date for application for 
165.2   life licenses.  
165.3      (k) The board must adopt rules that require all licensed 
165.4   teachers who are renewing their continuing license to include in 
165.5   their renewal requirements further preparation in the areas of 
165.6   using positive behavior interventions and in accommodating, 
165.7   modifying, and adapting curricula, materials, and strategies to 
165.8   appropriately meet the needs of individual students and ensure 
165.9   adequate progress toward the state's graduation rule.  The rules 
165.10  adopted under this paragraph apply to teachers who renew their 
165.11  licenses in year 2001 and later. 
165.12     (l) In adopting rules to license public school teachers who 
165.13  provide health-related services for disabled children, the board 
165.14  shall adopt rules consistent with license or registration 
165.15  requirements of the commissioner of health and the 
165.16  health-related boards who license personnel who perform similar 
165.17  services outside of the school. 
165.18     Sec. 8.  Minnesota Statutes 1998, section 122A.18, is 
165.19  amended by adding a subdivision to read: 
165.20     Subd. 10.  [READING STRATEGIES.] All colleges and 
165.21  universities approved by the board of teaching to prepare 
165.22  persons for classroom teacher licensure must include in their 
165.23  teacher preparation programs reading best practices that enable 
165.24  classroom teacher licensure candidates to know how to teach 
165.25  reading, such as phonics or other research-based best practices. 
165.26     Sec. 9.  Minnesota Statutes 1998, section 122A.19, 
165.27  subdivision 4, is amended to read: 
165.28     Subd. 4.  [TEACHER PREPARATION PROGRAMS.] For the purpose 
165.29  of licensing bilingual and English as a second language 
165.30  teachers, the board may approve programs at colleges or 
165.31  universities designed for their training subject to the approval 
165.32  of the state board of education. 
165.33     Sec. 10.  Minnesota Statutes 1998, section 122A.20, 
165.34  subdivision 1, is amended to read: 
165.35     Subdivision 1.  [GROUNDS FOR REVOCATION, SUSPENSION, OR 
165.36  DENIAL.] The board of teaching or the state board of education, 
166.1   or the commissioner, with the advice from an advisory task force 
166.2   of supervisory personnel established under section 15.014, 
166.3   whichever has jurisdiction over a teacher's licensure, may, on 
166.4   the written complaint of the school board employing a teacher, a 
166.5   teacher organization, or any other interested person, refuse to 
166.6   issue, refuse to renew, suspend, or revoke a teacher's license 
166.7   to teach for any of the following causes: 
166.8      (1) Immoral character or conduct; 
166.9      (2) Failure, without justifiable cause, to teach for the 
166.10  term of the teacher's contract; 
166.11     (3) Gross inefficiency or willful neglect of duty; or 
166.12     (4) Failure to meet licensure requirements; or 
166.13     (5) Fraud or misrepresentation in obtaining a license. 
166.14     The written complaint must specify the nature and character 
166.15  of the charges.  For purposes of this subdivision, the board of 
166.16  teaching is delegated the authority to suspend or revoke 
166.17  coaching licenses under the jurisdiction of the state board of 
166.18  education. 
166.19     Sec. 11.  Minnesota Statutes 1998, section 122A.20, 
166.20  subdivision 2, is amended to read: 
166.21     Subd. 2.  [MANDATORY REPORTING.] A school board must report 
166.22  to the board of teaching, the state board of education, or the 
166.23  board of trustees of the Minnesota state colleges and 
166.24  universities, whichever has jurisdiction over the teacher's 
166.25  license, when its teacher is discharged or resigns from 
166.26  employment after a charge is filed with the school board under 
166.27  section 122A.41, subdivisions 6, clauses (1), (2), and (3), and 
166.28  7, or after charges are filed that are ground for discharge 
166.29  under section 122A.40, subdivision 13, clauses (a), (b), (c), 
166.30  (d), and (e), or when a teacher is suspended or resigns while an 
166.31  investigation is pending under section 122A.40, subdivision 13, 
166.32  clauses (a), (b), (c), (d), and (e); 122A.41, subdivisions 6, 
166.33  clauses (1), (2), and (3), and 7; or 626.556.  The report must 
166.34  be made to the appropriate licensing board within ten days after 
166.35  the discharge, suspension, or resignation has occurred.  The 
166.36  licensing board to which the report is made must investigate the 
167.1   report for violation of subdivision 1 and the reporting board 
167.2   must cooperate in the investigation.  Notwithstanding any 
167.3   provision in chapter 13 or any law to the contrary, upon written 
167.4   request from the licensing board having jurisdiction over the 
167.5   teacher's license, a board or school superintendent shall 
167.6   provide the licensing board with information about the teacher 
167.7   from the district's files, any termination or disciplinary 
167.8   proceeding, any settlement or compromise, or any investigative 
167.9   file.  Upon written request from the appropriate licensing 
167.10  board, a board or school superintendent may, at the discretion 
167.11  of the board or school superintendent, solicit the written 
167.12  consent of a student and the student's parent to provide the 
167.13  licensing board with information that may aid the licensing 
167.14  board in its investigation and license proceedings.  The 
167.15  licensing board's request need not identify a student or parent 
167.16  by name.  The consent of the student and the student's parent 
167.17  must meet the requirements of chapter 13 and Code of Federal 
167.18  Regulations, title 34, section 99.30.  The licensing board may 
167.19  provide a consent form to the district.  Any data transmitted to 
167.20  any board under this section is private data under section 
167.21  13.02, subdivision 12, notwithstanding any other classification 
167.22  of the data when it was in the possession of any other agency. 
167.23     The licensing board to which a report is made must transmit 
167.24  to the attorney general's office any record or data it receives 
167.25  under this subdivision for the sole purpose of having the 
167.26  attorney general's office assist that board in its 
167.27  investigation.  When the attorney general's office has informed 
167.28  an employee of the appropriate licensing board in writing that 
167.29  grounds exist to suspend or revoke a teacher's license to teach, 
167.30  that licensing board must consider suspending or revoking or 
167.31  decline to suspend or revoke the teacher's license within 45 
167.32  days of receiving a stipulation executed by the teacher under 
167.33  investigation or a recommendation from an administrative law 
167.34  judge that disciplinary action be taken. 
167.35     Sec. 12.  Minnesota Statutes 1998, section 122A.21, is 
167.36  amended to read: 
168.1      122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.] 
168.2      Each application for the issuance, renewal, or extension of 
168.3   a license to teach and each application for the issuance, 
168.4   renewal, or extension of a license as supervisory personnel must 
168.5   be accompanied by a processing fee in an amount set by the board 
168.6   of teaching by rule.  Each application for the issuance, 
168.7   renewal, or extension of a license as supervisory personnel must 
168.8   be accompanied by a processing fee in an amount set by the state 
168.9   board of education by rule.  The processing fee for a teacher's 
168.10  license and for the licenses of supervisory personnel must be 
168.11  paid to the executive secretary of the board of teaching.  The 
168.12  processing fee for the licenses of supervisory personnel must be 
168.13  paid to the commissioner.  The executive secretary of the board 
168.14  of teaching and the commissioner shall deposit the fees with the 
168.15  state treasurer, as provided by law, and report each month to 
168.16  the commissioner of finance the amount of fees collected.  The 
168.17  fees as set by the boards board are nonrefundable for applicants 
168.18  not qualifying for a license.  However, a fee must be refunded 
168.19  by the state treasurer in any case in which the applicant 
168.20  already holds a valid unexpired license.  The boards board may 
168.21  waive or reduce fees for applicants who apply at the same time 
168.22  for more than one license, even if the licenses are under the 
168.23  jurisdiction of different boards. 
168.24     Sec. 13.  Minnesota Statutes 1998, section 122A.40, 
168.25  subdivision 5, is amended to read: 
168.26     Subd. 5.  [PROBATIONARY PERIOD.] The first three 
168.27  consecutive years of a teacher's first teaching experience in 
168.28  Minnesota in a single district is deemed to be a probationary 
168.29  period of employment, and after completion thereof, the 
168.30  probationary period in each district in which the teacher is 
168.31  thereafter employed shall be one year.  The school board must 
168.32  adopt a plan for written evaluation of teachers during the 
168.33  probationary period.  Evaluation must occur at least three times 
168.34  each year for a teacher performing services on 120 or more 
168.35  school days, at least two times each year for a teacher 
168.36  performing services on 60 to 119 school days, and at least one 
169.1   time each year for a teacher performing services on fewer than 
169.2   60 school days.  Days devoted to parent-teacher conferences, 
169.3   teachers' workshops, and other staff development opportunities 
169.4   and days on which a teacher is absent from school must not be 
169.5   included in determining the number of school days on which a 
169.6   teacher performs services.  During the probationary period any 
169.7   annual contract with any teacher may or may not be renewed as 
169.8   the school board shall see fit.  However, the board must give 
169.9   any such teacher whose contract it declines to renew for the 
169.10  following school year written notice to that effect before June 
169.11  July 1.  If the teacher requests reasons for any nonrenewal of a 
169.12  teaching contract, the board must give the teacher its reason in 
169.13  writing, including a statement that appropriate supervision was 
169.14  furnished describing the nature and the extent of such 
169.15  supervision furnished the teacher during the employment by the 
169.16  board, within ten days after receiving such request.  The school 
169.17  board may, after a hearing held upon due notice, discharge a 
169.18  teacher during the probationary period for cause, effective 
169.19  immediately, under section 122A.44. 
169.20     Sec. 14.  Minnesota Statutes 1998, section 122A.40, 
169.21  subdivision 7, is amended to read: 
169.22     Subd. 7.  [TERMINATION OF CONTRACT AFTER PROBATIONARY 
169.23  PERIOD.] A teacher who has completed a probationary period in 
169.24  any district, and who has not been discharged or advised of a 
169.25  refusal to renew the teacher's contract pursuant to subdivision 
169.26  5, shall have a continuing contract with such district.  
169.27  Thereafter, the teacher's contract must remain in full force and 
169.28  effect, except as modified by mutual consent of the board and 
169.29  the teacher, until terminated by a majority roll call vote of 
169.30  the full membership of the board prior to April 1 upon one of 
169.31  the grounds specified in subdivision 9 or prior to June July 1 
169.32  upon one of the grounds specified in subdivision 10 or 11, or 
169.33  until the teacher is discharged pursuant to subdivision 13, or 
169.34  by the written resignation of the teacher submitted prior to 
169.35  April 1.  If an agreement as to the terms and conditions of 
169.36  employment for the succeeding school year has not been adopted 
170.1   pursuant to the provisions of sections 179A.01 to 179A.25 prior 
170.2   to March 1, the teacher's right of resignation is extended to 
170.3   the 30th calendar day following the adoption of said contract in 
170.4   compliance with section 179A.20, subdivision 5.  Such written 
170.5   resignation by the teacher is effective as of June 30 if 
170.6   submitted prior to that date and the teachers' right of 
170.7   resignation for the school year then beginning shall cease on 
170.8   July 15.  Before a teacher's contract is terminated by the 
170.9   board, the board must notify the teacher in writing and state 
170.10  its ground for the proposed termination in reasonable detail 
170.11  together with a statement that the teacher may make a written 
170.12  request for a hearing before the board within 14 days after 
170.13  receipt of such notification.  If the grounds are those 
170.14  specified in subdivision 9 or 13, the notice must also state a 
170.15  teacher may request arbitration under subdivision 15.  Within 14 
170.16  days after receipt of this notification the teacher may make a 
170.17  written request for a hearing before the board or an arbitrator 
170.18  and it shall be granted upon reasonable notice to the teacher of 
170.19  the date set for hearing, before final action is taken.  If no 
170.20  hearing is requested within such period, it shall be deemed 
170.21  acquiescence by the teacher to the board's action.  Such 
170.22  termination shall take effect at the close of the school year in 
170.23  which the contract is terminated in the manner aforesaid.  Such 
170.24  contract may be terminated at any time by mutual consent of the 
170.25  board and the teacher and this section does not affect the 
170.26  powers of a board to suspend, discharge, or demote a teacher 
170.27  under and pursuant to other provisions of law. 
170.28     Sec. 15.  Minnesota Statutes 1998, section 122A.40, 
170.29  subdivision 16, is amended to read: 
170.30     Subd. 16.  [DECISION.] After the hearing, the board must 
170.31  issue a written decision and order.  If the board orders 
170.32  termination of a continuing contract or discharge of a teacher, 
170.33  its decision must include findings of fact based upon competent 
170.34  evidence in the record and must be served on the teacher, 
170.35  accompanied by an order of termination or discharge, prior to 
170.36  April 1 in the case of a contract termination for grounds 
171.1   specified in subdivision 9, prior to June July 1 for grounds 
171.2   specified in subdivision 10 or 11, or within ten days after 
171.3   conclusion of the hearing in the case of a discharge.  If the 
171.4   decision of the board or of a reviewing court is favorable to 
171.5   the teacher, the proceedings must be dismissed and the decision 
171.6   entered in the board minutes, and all references to such 
171.7   proceedings must be excluded from the teacher's record file. 
171.8      Sec. 16.  Minnesota Statutes 1998, section 122A.41, 
171.9   subdivision 4, is amended to read: 
171.10     Subd. 4.  [PERIOD OF SERVICE AFTER PROBATIONARY PERIOD; 
171.11  DISCHARGE OR DEMOTION.] After the completion of such 
171.12  probationary period, without discharge, such teachers as are 
171.13  thereupon reemployed shall continue in service and hold their 
171.14  respective position during good behavior and efficient and 
171.15  competent service and must not be discharged or demoted except 
171.16  for cause after a hearing. 
171.17     A probationary teacher is deemed to have been reemployed 
171.18  for the ensuing school year, unless the school board in charge 
171.19  of such school gave such teacher notice in writing before June 
171.20  July 1 of the termination of such employment.  In event of such 
171.21  notice the employment terminates at the close of the school 
171.22  sessions of the current school year. 
171.23     Sec. 17.  Minnesota Statutes 1998, section 122A.60, 
171.24  subdivision 1, is amended to read: 
171.25     Subdivision 1.  [STAFF DEVELOPMENT COMMITTEE.] A school 
171.26  board must use the revenue authorized in section 122A.61 for 
171.27  in-service education for programs under section 120B.22, 
171.28  subdivision 2, or for staff development plans under this 
171.29  section.  The board must establish a an advisory staff 
171.30  development committee to develop the plan, assist 
171.31  site decision-making professional development teams in 
171.32  developing a site plan consistent with the goals of the plan, 
171.33  and evaluate staff development efforts at the site level.  A 
171.34  majority of the advisory committee and the site professional 
171.35  development team must be teachers representing various grade 
171.36  levels, subject areas, and special education.  The advisory 
172.1   committee must also include nonteaching staff, parents, and 
172.2   administrators.  Districts must report staff development results 
172.3   and expenditures to the commissioner in the form and manner 
172.4   determined by the commissioner.  The expenditure report must 
172.5   include expenditures by the board for district level activities 
172.6   and expenditures made by the staff.  The report must provide a 
172.7   breakdown of expenditures for (1) curriculum development and 
172.8   programs, (2) in-service education, workshops, and conferences, 
172.9   and (3) the cost of teachers or substitute teachers for staff 
172.10  development purposes.  Within each of these categories, the 
172.11  report must also indicate whether the expenditures were incurred 
172.12  at the district level or the school site level, and whether the 
172.13  school site expenditures were made possible by the grants to 
172.14  school sites that demonstrate exemplary use of allocated staff 
172.15  development revenue.  These expenditures are to be reported 
172.16  using the UFARS system.  The commissioner shall report the staff 
172.17  development expenditure data to the education committees of the 
172.18  legislature by February 15 each year.  
172.19     Sec. 18.  [123A.245] [COOPERATIVE UNITS; ELIGIBILITY FOR 
172.20  GRANTS.] 
172.21     A cooperative unit, through its governing board, may apply 
172.22  for all competitive grants administered by agencies of the state 
172.23  and other government or nongovernment sources. 
172.24     Sec. 19.  Minnesota Statutes 1998, section 123B.02, 
172.25  subdivision 3, is amended to read: 
172.26     Subd. 3.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
172.27  SUPPORT.] (a) A district must not be required by any type of 
172.28  formal or informal agreement except an agreement to provide 
172.29  building space according to paragraph (f), including a joint 
172.30  powers agreement, or membership in any cooperative unit defined 
172.31  in section 123A.24, subdivision 2, to participate in or provide 
172.32  financial support for the purposes of the agreement for a time 
172.33  period in excess of four fiscal years, or the time period set 
172.34  forth in this subdivision.  Any agreement, part of an agreement, 
172.35  or other type of requirement to the contrary is void.  This 
172.36  paragraph applies only to agreements entered into between July 
173.1   1, 1993, and June 30, 1999. 
173.2      (b) This subdivision shall not affect the continued 
173.3   liability of a district for its share of bonded indebtedness or 
173.4   other debt incurred as a result of any agreement before July 1, 
173.5   1993.  The district is liable only until the obligation or debt 
173.6   is discharged and only according to the payment schedule in 
173.7   effect on July 1, 1993, except that the payment schedule may be 
173.8   altered for the purpose of restructuring debt or refunding bonds 
173.9   outstanding on July 1, 1993, if the annual payments of the 
173.10  district are not increased and if the total obligation of the 
173.11  school district for its share of outstanding bonds or other debt 
173.12  is not increased. 
173.13     (c) To cease participating in or providing financial 
173.14  support for any of the services or activities relating to the 
173.15  agreement or to terminate participation in the agreement, the 
173.16  board must adopt a resolution and notify other parties to the 
173.17  agreement of its decision on or before February 1 of any year.  
173.18  The cessation or withdrawal shall be effective June 30 of the 
173.19  same year except that for a member of an education district 
173.20  organized under sections 123A.15 to 123A.19 or an intermediate 
173.21  district organized under chapter 136D, cessation or withdrawal 
173.22  shall be effective June 30 of the following fiscal year.  At the 
173.23  option of the board, cessation or withdrawal may be effective 
173.24  June 30 of the following fiscal year for a district 
173.25  participating in any type of agreement.  
173.26     (d) Before issuing bonds or incurring other debt, the 
173.27  governing body responsible for implementing the agreement must 
173.28  adopt a resolution proposing to issue bonds or incur other debt 
173.29  and the proposed financial effect of the bonds or other debt 
173.30  upon each participating district.  The resolution must be 
173.31  adopted within a time sufficient to allow the board to adopt a 
173.32  resolution within the time permitted by this paragraph and to 
173.33  comply with the statutory deadlines set forth in sections 
173.34  122A.40, 122A.41, and 123A.33.  The governing body responsible 
173.35  for implementing the agreement shall notify each participating 
173.36  board of the contents of the resolution.  Within 120 days of 
174.1   receiving the resolution of the governing body, the school board 
174.2   of the participating district shall adopt a resolution stating: 
174.3      (1) its concurrence with issuing bonds or incurring other 
174.4   debt; 
174.5      (2) its intention to cease participating in or providing 
174.6   financial support for the service or activity related to the 
174.7   bonds or other debt; or 
174.8      (3) its intention to terminate participation in the 
174.9   agreement. 
174.10     A board adopting a resolution according to clause (1) is 
174.11  liable for its share of bonded indebtedness or other debt as 
174.12  proposed by the governing body implementing the agreement.  A 
174.13  school board adopting a resolution according to clause (2) is 
174.14  not liable for the bonded indebtedness or other debt, as 
174.15  proposed by the governing body, related to the services or 
174.16  activities in which the district ceases participating or 
174.17  providing financial support.  A board adopting a resolution 
174.18  according to clause (3) is not liable for the bonded 
174.19  indebtedness or other debt proposed by the governing body 
174.20  implementing the agreement. 
174.21     (e) After July 1, 1993, a district is liable according to 
174.22  paragraph (d) for its share of bonded indebtedness or other debt 
174.23  incurred by the governing body implementing the agreement to the 
174.24  extent that the bonds or other debt are directly related to the 
174.25  services or activities in which the district participates or for 
174.26  which the district provides financial support.  The district has 
174.27  continued liability only until the obligation or debt is 
174.28  discharged and only according to the payment schedule in effect 
174.29  at the time the governing body implementing the agreement 
174.30  provides notice to the school board, except that the payment 
174.31  schedule may be altered for the purpose of refunding the 
174.32  outstanding bonds or restructuring other debt if the annual 
174.33  payments of the district are not increased and if the total 
174.34  obligation of the district for the outstanding bonds or other 
174.35  debt is not increased. 
174.36     (f) A district that is a member of a cooperative unit as 
175.1   defined in section 123A.24, subdivision 2, may obligate itself 
175.2   to participate in and provide financial support for an agreement 
175.3   with a cooperative unit to provide school building space for a 
175.4   term not to exceed two years with an option on the part of the 
175.5   district to renew for an additional two years.  
175.6      (g) Notwithstanding any limitations imposed under this 
175.7   subdivision, a school district may, according to section 
175.8   123B.51, subdivision 4, enter into a lease of all or a portion 
175.9   of a schoolhouse that is not needed for school purposes, 
175.10  including, but not limited to, a lease with a term of more than 
175.11  one year. 
175.12     Sec. 20.  Minnesota Statutes 1998, section 123B.77, 
175.13  subdivision 4, is amended to read: 
175.14     Subd. 4.  [BUDGET APPROVAL.] Prior to July 1 of each year, 
175.15  the board of each district must approve and adopt its revenue 
175.16  and expenditure budgets for the next school year.  The budget 
175.17  document so adopted must be considered an 
175.18  expenditure-authorizing or appropriations document.  No funds 
175.19  shall be expended by any board or district for any purpose in 
175.20  any school year prior to the adoption of the budget document 
175.21  which authorizes that expenditure, or prior to an amendment to 
175.22  the budget document by the board to authorize the expenditure.  
175.23  Expenditures of funds in violation of this subdivision shall be 
175.24  considered unlawful expenditures.  Prior to the appropriation of 
175.25  revenue for the next school year in the initial budget, the 
175.26  board shall calculate the general education revenue, basic 
175.27  skills revenue, and referendum revenue for that year that it 
175.28  estimates will be generated by the pupils in attendance at each 
175.29  site, and shall inform each site of that estimate and report 
175.30  this information to the department of children, families, and 
175.31  learning. 
175.32     Sec. 21.  Minnesota Statutes 1998, section 123B.83, 
175.33  subdivision 4, is amended to read: 
175.34     Subd. 4.  [SPECIAL OPERATING PLAN.] (1) If the net negative 
175.35  unappropriated operating fund balance as defined in section 
175.36  126C.01, subdivision 11, calculated in accordance with the 
176.1   uniform financial accounting and reporting standards for 
176.2   Minnesota school districts, as of June 30 each year, is more 
176.3   than 2-1/2 percent of the year's expenditure amount, the 
176.4   district must, prior to January 31 of the next fiscal year, 
176.5   submit a special operating plan to reduce the district's deficit 
176.6   expenditures to the commissioner for approval.  The commissioner 
176.7   may also require the district to provide evidence that the 
176.8   district meets and will continue to meet all of the curriculum 
176.9   high school graduation requirements of the state board. 
176.10     Notwithstanding any other law to the contrary, a district 
176.11  submitting a special operating plan to the commissioner under 
176.12  this clause which is disapproved by the commissioner must not 
176.13  receive any aid pursuant to chapters 120B, 122A, 123A, 123B, 
176.14  124D, 125A, 126C, and 127A until a special operating plan of the 
176.15  district is so approved. 
176.16     (2) A district must receive aids pending the approval of 
176.17  its special operating plan under clause (1).  A district which 
176.18  complies with its approved operating plan must receive aids as 
176.19  long as the district continues to comply with the approved 
176.20  operating plan. 
176.21     Sec. 22.  Minnesota Statutes 1998, section 123B.90, 
176.22  subdivision 2, is amended to read: 
176.23     Subd. 2.  [STUDENT TRAINING.] (a) Each district must 
176.24  provide public school pupils enrolled in grades kindergarten 
176.25  through 10 with age-appropriate school bus safety training.  The 
176.26  training must be results-oriented and shall consist of both 
176.27  classroom instruction and practical training using a school 
176.28  bus.  Upon completing the training, a student shall be able to 
176.29  demonstrate knowledge and understanding of at least the 
176.30  following competencies and concepts: 
176.31     (1) transportation by school bus is a privilege and not a 
176.32  right; 
176.33     (2) district policies for student conduct and school bus 
176.34  safety; 
176.35     (3) appropriate conduct while on the school bus; 
176.36     (4) the danger zones surrounding a school bus; 
177.1      (5) procedures for safely boarding and leaving a school 
177.2   bus; 
177.3      (6) procedures for safe street or road crossing; and 
177.4      (7) school bus evacuation and other emergency procedures; 
177.5   and 
177.6      (8) appropriate training on the use of lap belts or lap and 
177.7   shoulder belts, if the district uses buses equipped with lap 
177.8   belts or lap and shoulder belts. 
177.9      (b) Each nonpublic school located within the district must 
177.10  provide all nonpublic school pupils enrolled in grades 
177.11  kindergarten through 10 who are transported by school bus at 
177.12  public expense and attend school within the district's 
177.13  boundaries with training as required in paragraph (a).  The 
177.14  school district shall make a bus available for the practical 
177.15  training if the district transports the nonpublic students.  
177.16  Each nonpublic school shall provide the instruction. 
177.17     (c) All students enrolled in grades kindergarten through 3 
177.18  who are transported by school bus and are enrolled during the 
177.19  first or second week of school must demonstrate achievement of 
177.20  the school bus safety training competencies by the end of the 
177.21  third week of school.  All students enrolled in grades 4 through 
177.22  10 who are transported by school bus and are enrolled during the 
177.23  first or second week of school must demonstrate achievement of 
177.24  the competencies by the end of the sixth week of school.  
177.25  Students enrolled in grades kindergarten through 10 who enroll 
177.26  in a school after the second week of school and are transported 
177.27  by school bus shall undergo school bus safety training and 
177.28  demonstrate achievement of the school bus safety competencies 
177.29  within four weeks of the first day of attendance.  The pupil 
177.30  transportation safety director in each district must certify to 
177.31  the commissioner annually that all students transported by 
177.32  school bus within the district have satisfactorily demonstrated 
177.33  knowledge and understanding of the school bus safety 
177.34  competencies according to this section or provide an explanation 
177.35  for a student's failure to demonstrate the competencies.  The 
177.36  principal or other chief administrator of each nonpublic school 
178.1   must certify annually to the public transportation safety 
178.2   director of the district in which the school is located that all 
178.3   of the school's students transported by school bus at public 
178.4   expense have received training.  A district may deny 
178.5   transportation to a student who fails to demonstrate the 
178.6   competencies, unless the student is unable to achieve the 
178.7   competencies due to a disability, or to a student who attends a 
178.8   nonpublic school that fails to provide training as required by 
178.9   this subdivision. 
178.10     (d) A district and a nonpublic school with students 
178.11  transported by school bus at public expense must, to the extent 
178.12  possible, provide kindergarten pupils with bus safety training 
178.13  before the first day of school. 
178.14     (e) A district and a nonpublic school with students 
178.15  transported by school bus at public expense must also provide 
178.16  student safety education for bicycling and pedestrian safety, 
178.17  for students enrolled in grades kindergarten through 5. 
178.18     (f) A district and a nonpublic school with students 
178.19  transported by school bus at public expense must make reasonable 
178.20  accommodations for the school bus, bicycle, and pedestrian 
178.21  safety training of pupils known to speak English as a second 
178.22  language and pupils with disabilities. 
178.23     Sec. 23.  Minnesota Statutes 1998, section 123B.90, 
178.24  subdivision 3, is amended to read: 
178.25     Subd. 3.  [MODEL TRAINING PROGRAM.] The commissioner shall 
178.26  develop a comprehensive model school bus safety training program 
178.27  for pupils who ride the bus that includes bus safety curriculum 
178.28  for both classroom and practical instruction, methods for 
178.29  assessing attainment of school bus safety competencies, and 
178.30  age-appropriate instructional materials.  The model training 
178.31  program for students riding buses with lap belts or lap and 
178.32  shoulder belts must include information on the appropriate use 
178.33  of lap belts or lap and shoulder belts.  The program must be 
178.34  adaptable for use by students with disabilities. 
178.35     Sec. 24.  Minnesota Statutes 1998, section 123B.91, 
178.36  subdivision 1, is amended to read: 
179.1      Subdivision 1.  [COMPREHENSIVE POLICY.] Each district must 
179.2   develop and implement a comprehensive, written policy governing 
179.3   pupil transportation safety, including transportation of 
179.4   nonpublic school students, when applicable.  The policy shall, 
179.5   at minimum, contain: 
179.6      (1) provisions for appropriate student bus safety training 
179.7   under section 123B.90; 
179.8      (2) rules governing student conduct on school buses and in 
179.9   school bus loading and unloading areas; 
179.10     (3) a statement of parent or guardian responsibilities 
179.11  relating to school bus safety; 
179.12     (4) provisions for notifying students and parents or 
179.13  guardians of their responsibilities and the rules, including the 
179.14  district's seat belt policy, if applicable; 
179.15     (5) an intradistrict system for reporting school bus 
179.16  accidents or misconduct and a system for dealing with local law 
179.17  enforcement officials in cases of criminal conduct on a school 
179.18  bus; 
179.19     (6) a discipline policy to address violations of school bus 
179.20  safety rules, including procedures for revoking a student's bus 
179.21  riding privileges in cases of serious or repeated misconduct; 
179.22     (7) a system for integrating school bus misconduct records 
179.23  with other discipline records; 
179.24     (8) a statement of bus driver duties; 
179.25     (9) planned expenditures for safety activities under 
179.26  section 123B.89 and, where applicable, provisions governing bus 
179.27  monitor qualifications, training, and duties; 
179.28     (10) rules governing the use and maintenance of type III 
179.29  vehicles, drivers of type III vehicles, qualifications to drive 
179.30  a type III vehicle, qualifications for a type III vehicle and 
179.31  the circumstances under which a student may be transported in a 
179.32  type III vehicle; 
179.33     (11) operating rules and procedures; 
179.34     (12) provisions for annual bus driver in-service training 
179.35  and evaluation; 
179.36     (13) emergency procedures; 
180.1      (14) a system for maintaining and inspecting equipment; 
180.2      (15) requirements of the school district, if any, that 
180.3   exceed state law minimum requirements for school bus operations; 
180.4   and 
180.5      (16) requirements for basic first aid training, which must 
180.6   include the Heimlich maneuver and procedures for dealing with 
180.7   obstructed airways, shock, bleeding, and seizures. 
180.8      Districts are encouraged to use the model policy developed 
180.9   by the Minnesota school boards association, the department of 
180.10  public safety, and the department of children, families, and 
180.11  learning, as well as the current edition of the "National 
180.12  Standards for School Buses and Operations" published by the 
180.13  National Safety Council, in developing safety policies.  Each 
180.14  district shall review its policy annually and make appropriate 
180.15  amendments, which must be submitted to the school bus safety 
180.16  advisory committee within one month of approval by the school 
180.17  board. 
180.18     Sec. 25.  Minnesota Statutes 1998, section 124D.03, is 
180.19  amended by adding a subdivision to read: 
180.20     Subd. 12.  [TERMINATION OF ENROLLMENT.] A district may 
180.21  terminate the enrollment of a nonresident student enrolled under 
180.22  this section or section 124D.07 or 124D.08 at the end of a 
180.23  school year if the student meets the definition of a habitual 
180.24  truant under section 260.015, subdivision 19, the student has 
180.25  been provided appropriate services under chapter 260A, and the 
180.26  student's case has been referred to juvenile court.  A district 
180.27  may also terminate the enrollment of a nonresident student over 
180.28  the age of 16 enrolled under this section if the student is 
180.29  absent without lawful excuse for one or more periods on 15 
180.30  school days and has not lawfully withdrawn from school under 
180.31  section 120A.22, subdivision 8. 
180.32     Sec. 26.  Minnesota Statutes 1998, section 124D.86, 
180.33  subdivision 1, is amended to read: 
180.34     Subdivision 1.  [USE OF THE REVENUE.] Integration revenue 
180.35  under this section must be used for programs established under a 
180.36  desegregation plan mandated by the state board or under court 
181.1   order, to increase learning opportunities and reduce the 
181.2   learning gap between learners living in high concentrations of 
181.3   poverty and their peers. 
181.4      Sec. 27.  Minnesota Statutes 1998, section 124D.86, 
181.5   subdivision 3, is amended to read: 
181.6      Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 1999 and 
181.7   later fiscal years, integration revenue equals the following 
181.8   amounts: 
181.9      (1) for independent school district No. 709, Duluth, $193 
181.10  times the resident pupil units for the school year; 
181.11     (2) for independent school district No. 625, St. Paul, $427 
181.12  times the resident pupil units for the school year; 
181.13     (3) for special school district No. 1, Minneapolis, $523 
181.14  times the resident pupil units for the school year; and 
181.15     (4) for a district not listed in clause (1), (2), or (3) 
181.16  that is required to implement a plan according to the 
181.17  requirements of Minnesota Rules, parts 3535.0200 to 
181.18  3535.2200 3535.0100 to 3535.0180, as proposed in 23 State 
181.19  Register 1344, December 7, 1998, the lesser of the actual cost 
181.20  of implementing the plan during the fiscal year or $93 times the 
181.21  resident pupil units for the school year. 
181.22     Sec. 28.  Minnesota Statutes 1998, section 124D.89, 
181.23  subdivision 1, is amended to read: 
181.24     Subdivision 1.  [CULTURAL EXCHANGE PROGRAM GOALS.] (a) A 
181.25  cultural exchange grant program is established to develop and 
181.26  create opportunities for children and staff of different ethnic, 
181.27  racial, and other cultural backgrounds to experience educational 
181.28  and social exchange.  Student and staff exchanges under this 
181.29  section may only take place between a district with a 
181.30  desegregation plan approved by the state board of education and 
181.31  a district without a desegregation plan.  Participating school 
181.32  districts shall offer summer programs for credit with the goals 
181.33  set forth in paragraphs (b) to (e). 
181.34     (b) The program must develop curriculum reflective of 
181.35  particular ethnic, racial, and other cultural aspects of various 
181.36  demographic groups in the state. 
182.1      (c) The program must develop immersion programs that are 
182.2   coordinated with the programs offered in paragraph (b). 
182.3      (d) The program must create opportunities for students from 
182.4   across the state to enroll in summer programs in districts other 
182.5   than the one of residence, or in other schools within their 
182.6   district of residence. 
182.7      (e) The program must create opportunities for staff 
182.8   exchanges on a cultural basis. 
182.9      Sec. 29.  Minnesota Statutes 1998, section 125A.09, 
182.10  subdivision 11, is amended to read: 
182.11     Subd. 11.  [HEARING REVIEW OFFICER'S QUALIFICATIONS.] The 
182.12  commissioner must select an individual who has the 
182.13  qualifications enumerated in this subdivision to serve as the 
182.14  hearing review officer: 
182.15     (1) the individual must be knowledgeable and impartial; 
182.16     (2) the individual must not have a personal interest in or 
182.17  specific involvement with the student who is a party to the 
182.18  hearing; 
182.19     (3) the individual must not have been employed as an 
182.20  administrator by the district that is a party to the hearing; 
182.21     (4) the individual must not have been involved in the 
182.22  selection of the administrators of the district that is a party 
182.23  to the hearing; 
182.24     (5) the individual must not have a personal, economic, or 
182.25  professional interest in the outcome of the hearing other than 
182.26  the proper administration of the federal and state laws, rules, 
182.27  and policies; 
182.28     (6) the individual must not have substantial involvement in 
182.29  the development of a state or local policy or procedures that 
182.30  are challenged in the appeal; 
182.31     (7) the individual is not a current employee or board 
182.32  member of a Minnesota public school district, education 
182.33  district, intermediate unit or regional education agency, or the 
182.34  department, and the state board of education; and 
182.35     (8) the individual is not a current employee or board 
182.36  member of a disability advocacy organization or group. 
183.1      Sec. 30.  Minnesota Statutes 1998, section 127A.05, 
183.2   subdivision 1, is amended to read: 
183.3      Subdivision 1.  [APPOINTMENT AND DUTIES.] The department 
183.4   shall be under the administrative control of the commissioner of 
183.5   children, families, and learning which office is 
183.6   established.  The commissioner shall be the secretary of the 
183.7   state board.  The governor shall appoint the commissioner under 
183.8   the provisions of section 15.06.  
183.9      The commissioner shall be a person who possesses 
183.10  educational attainment and breadth of experience in the 
183.11  administration of public education and of the finances 
183.12  pertaining thereto commensurate with the spirit and intent of 
183.13  this code.  Notwithstanding any other law to the contrary, the 
183.14  commissioner may appoint two deputy commissioners who shall 
183.15  serve in the unclassified service.  The commissioner shall also 
183.16  appoint other employees as may be necessary for the organization 
183.17  of the department.  The commissioner shall perform such duties 
183.18  as the law and the rules of the state board may provide and be 
183.19  held responsible for the efficient administration and discipline 
183.20  of the department.  The commissioner shall make recommendations 
183.21  to the board and be is charged with the execution of powers and 
183.22  duties which the state board may prescribe, from time to time, 
183.23  to promote public education in the state, and to safeguard the 
183.24  finances pertaining thereto, and to enable the state board to 
183.25  carry out its duties. 
183.26     Sec. 31.  [127A.25] [SURVEY OF DISTRICTS.] 
183.27     The commissioner of children, families, and learning shall 
183.28  survey the state's school districts and report to the education 
183.29  committees of the legislature by January 15 of each odd-numbered 
183.30  year on the status of the teacher shortage and the substitute 
183.31  teacher shortage, including shortages in subject areas and 
183.32  regions of the state.  The report must also include how 
183.33  districts are making progress in hiring teachers and substitutes 
183.34  in the areas of shortage. 
183.35     Sec. 32.  Minnesota Statutes 1998, section 127A.41, 
183.36  subdivision 5, is amended to read: 
184.1      Subd. 5.  [DISTRICT APPEAL OF AID REDUCTION; INSPECTION OF 
184.2   DISTRICT SCHOOLS AND ACCOUNTS AND RECORDS.] A reduction of aid 
184.3   under this section may be appealed to the state board of 
184.4   education and its decision shall be final.  Public schools shall 
184.5   at all times be open to the inspection of the commissioner.  The 
184.6   accounts and records of any district must be open to inspection 
184.7   by the state auditor, the state board, or the commissioner for 
184.8   the purpose of audits conducted under this section.  Each 
184.9   district shall keep for a minimum of three years at least the 
184.10  following:  (1) identification of the annual session days held, 
184.11  together with a record of the length of each session day, (2) a 
184.12  record of each pupil's daily attendance, with entrance and 
184.13  withdrawal dates, and (3) identification of the pupils 
184.14  transported who are reported for transportation aid. 
184.15     Sec. 33.  Minnesota Statutes 1998, section 127A.42, 
184.16  subdivision 5, is amended to read: 
184.17     Subd. 5.  [DISPUTE VIOLATIONS; HEARING.] The board to which 
184.18  such notice is given may, by a majority vote of the whole board, 
184.19  decide to dispute that the specified violation exists or that 
184.20  the time allowed is reasonable or the correction specified is 
184.21  correct, or that the commissioner may reduce aids.  The board 
184.22  must give the commissioner written notice of the decision.  If 
184.23  the commissioner, after further investigation as the 
184.24  commissioner deems necessary, adheres to the previous 
184.25  notice, the board shall be entitled to a hearing by the state 
184.26  board the commissioner shall notify the school board of its 
184.27  decision.  The state board must set a hearing time and place and 
184.28  the board of the district must be given notice by mail.  The 
184.29  state board must adopt rules governing the proceedings for 
184.30  hearings.  The hearings must be designed to give a full and fair 
184.31  hearing and permit interested parties an opportunity to produce 
184.32  evidence relating to the issues involved.  The rules may provide 
184.33  that any question of fact to be determined at the hearing may be 
184.34  referred to one or more members of the board or to an employee 
184.35  of the state board acting as a referee to hear evidence and 
184.36  report the testimony taken to the state board.  The state board, 
185.1   or a person designated to receive evidence at a hearing, shall 
185.2   have the same right to issue subpoenas and administer oaths and 
185.3   parties to the hearing shall have the same right to subpoenas 
185.4   issued as are allowed for proceedings before the industrial 
185.5   commission.  A stenographic record must be made of all testimony 
185.6   given and other proceedings during the hearing.  If practicable, 
185.7   rules governing admission of evidence in courts shall apply to 
185.8   the hearing.  The decision of the state board must be in writing 
185.9   and the controlling facts upon which the decision is made must 
185.10  be stated in sufficient detail to apprise the parties and the 
185.11  reviewing court of the basis and reason for the decision.  The 
185.12  decision must be confined to whether any of the specified 
185.13  violations existed at the date of the commissioner's first 
185.14  notice, whether the violations were corrected within the time 
185.15  permitted, and whether the violations require reduction of the 
185.16  state aids under this section. 
185.17     Sec. 34.  Minnesota Statutes 1998, section 127A.42, 
185.18  subdivision 6, is amended to read: 
185.19     Subd. 6.  [VIOLATION; AID REDUCTION.] The commissioner 
185.20  shall not reduce state aids payable to the district if the 
185.21  violation specified is corrected within the time permitted, or 
185.22  if the commissioner on being notified of the district board's 
185.23  decision to dispute decides the violation does not exist, or if 
185.24  the state board decides after hearing no violation specified in 
185.25  the commissioner's notice existed at the time of the notice, or 
185.26  that the violations were corrected within the time permitted.  
185.27  Otherwise state aids payable to the district for the year in 
185.28  which the violation occurred shall be reduced as follows:  The 
185.29  total amount of state aids to which the district may be entitled 
185.30  shall be reduced in the proportion that the period during which 
185.31  a specified violation continued, computed from the last day of 
185.32  the time permitted for correction, bears to the total number of 
185.33  days school is held in the district during the year in which a 
185.34  violation exists, multiplied by 60 percent of the basic revenue, 
185.35  as defined in section 126C.10, subdivision 2, of the district 
185.36  for that year. 
186.1      Sec. 35.  Minnesota Statutes 1998, section 127A.60, 
186.2   subdivision 1, is amended to read: 
186.3      Subdivision 1.  [DEPARTMENT.] A state department of 
186.4   children, families, and learning is hereby created which shall 
186.5   be maintained under the direction of a state board of education 
186.6   composed of nine representative citizens of the state, at least 
186.7   one of whom shall reside in each congressional district in the 
186.8   state. 
186.9      Of the nine representative citizens of the state who are 
186.10  appointed to the state board of education not less than three 
186.11  members thereof shall previously thereto have served as an 
186.12  elected member of a board of education of a school district 
186.13  however organized. 
186.14     The members of the state board shall be appointed by the 
186.15  governor, with the advice and consent of the senate.  One member 
186.16  shall be chosen annually as president, but no member shall serve 
186.17  as president more than three consecutive years.  The state board 
186.18  shall hold its annual meeting in August.  It shall hold meetings 
186.19  on dates and at places as it designates.  No member shall hold 
186.20  any public office, or represent or be employed by any board of 
186.21  education or school district, public or private, and shall not 
186.22  voluntarily have any personal financial interest in any contract 
186.23  with a board of education or school district, or be engaged in 
186.24  any capacity where a conflict of interest may arise. 
186.25     Sec. 36.  Minnesota Statutes 1998, section 127A.66, 
186.26  subdivision 2, is amended to read: 
186.27     Subd. 2.  [ADMINISTRATIVE RULES.] The state board 
186.28  commissioner may adopt new rules and amend them or amend any of 
186.29  its existing rules only under specific authority and consistent 
186.30  with the requirements of chapter 14.  The state board 
186.31  commissioner may repeal any of its the commissioner's existing 
186.32  rules.  Notwithstanding the provisions of section 14.05, 
186.33  subdivision 4, the state board commissioner may grant a variance 
186.34  to its the commissioner's rules upon application by a school 
186.35  district for purposes of implementing experimental programs in 
186.36  learning or school management.  This subdivision shall not 
187.1   prohibit the state board commissioner from making technical 
187.2   changes or corrections to its the commissioner's rules. 
187.3      Sec. 37.  Minnesota Statutes 1998, section 128C.01, 
187.4   subdivision 4, is amended to read: 
187.5      Subd. 4.  [BOARD.] (a) The league must have a 20-member 
187.6   governing board. 
187.7      (1) The governor must appoint four members according to 
187.8   section 15.0597.  Each of the four appointees must be a parent.  
187.9   At least one of them must be an American Indian, an Asian, a 
187.10  Black, or a Hispanic. 
187.11     (2) The Minnesota association of secondary school 
187.12  principals must appoint two of its members. 
187.13     (3) The remaining 14 members must be selected according to 
187.14  league bylaws.  
187.15     (b) The terms, compensation, removal of members, and the 
187.16  filling of membership vacancies are governed by section 15.0575, 
187.17  except that the four-year terms begin on August 1 and end on 
187.18  July 31.  As provided by section 15.0575, members who are 
187.19  full-time state employees or full-time employees of school 
187.20  districts or other political subdivisions of the state may not 
187.21  receive any per diem payment for service on the board. 
187.22     Sec. 38.  Minnesota Statutes 1998, section 128C.02, is 
187.23  amended by adding a subdivision to read: 
187.24     Subd. 9.  [PURCHASING.] In purchasing goods and services, 
187.25  the league must follow all laws that apply to school districts 
187.26  under sections 123B.52 and 471.345. 
187.27     Sec. 39.  Minnesota Statutes 1998, section 128C.20, 
187.28  subdivision 1, is amended to read: 
187.29     Subdivision 1.  [ANNUALLY.] Each year the commissioner of 
187.30  children, families, and learning shall obtain and review the 
187.31  following information about the league: 
187.32     (1) an accurate and concise summary of the annual financial 
187.33  and compliance audit prepared by the state auditor that includes 
187.34  information about the compensation of and the expenditures by 
187.35  the executive director of the league and league staff; 
187.36     (2) a list of all complaints filed with the league and all 
188.1   lawsuits filed against the league and the disposition of those 
188.2   complaints and lawsuits; 
188.3      (3) an explanation of the executive director's performance 
188.4   review; 
188.5      (4) information about the extent to which the league has 
188.6   implemented its affirmative action policy, its comparable worth 
188.7   plan, and its sexual harassment and violence policy and rules; 
188.8   and 
188.9      (5) an evaluation of any proposed changes in league policy. 
188.10     The commissioner may examine any league activities or 
188.11  league-related issues when the commissioner believes this review 
188.12  is warranted. 
188.13     Sec. 40.  Minnesota Statutes 1998, section 169.01, 
188.14  subdivision 6, is amended to read: 
188.15     Subd. 6.  [SCHOOL BUS.] "School bus" means a motor vehicle 
188.16  used to transport pupils to or from a school defined in section 
188.17  120A.22, or to or from school-related activities, by the school 
188.18  or a school district, or by someone under an agreement with the 
188.19  school or a school district.  A school bus does not include a 
188.20  motor vehicle transporting children to or from school for which 
188.21  parents or guardians receive direct compensation from a school 
188.22  district, a motor coach operating under charter carrier 
188.23  authority, a transit bus providing services as defined in 
188.24  section 174.22, subdivision 7, or a vehicle otherwise qualifying 
188.25  as a type III vehicle under paragraph (5), when the vehicle is 
188.26  properly registered and insured and being driven by an employee 
188.27  or agent of a school district for nonscheduled transportation.  
188.28  A school bus may be type A, type B, type C, or type D, or type 
188.29  III as follows:  
188.30     (1) A "type A school bus" is a conversion or body 
188.31  constructed upon a van-type or cutaway front section vehicle 
188.32  with a left-side driver's door, designed for carrying more than 
188.33  ten persons.  This definition includes two classifications:  
188.34  type A-I, with a gross vehicle weight rating (GVWR) over 10,000 
188.35  pounds; and type A-II, with a GVWR of 10,000 pounds or less. 
188.36     (2) A "type B school bus" is a conversion or body 
189.1   constructed and installed upon a van or front-section vehicle 
189.2   chassis, or stripped chassis, with a gross vehicle weight rating 
189.3   of more than 10,000 pounds, designed for carrying more than ten 
189.4   persons.  Part of the engine is beneath or behind the windshield 
189.5   and beside the driver's seat.  The entrance door is behind the 
189.6   front wheels. 
189.7      (3) A "type C school bus" is a body installed upon a flat 
189.8   back cowl chassis with a gross vehicle weight rating of more 
189.9   than 10,000 pounds, designed for carrying more than ten 
189.10  persons.  All of the engine is in front of the windshield and 
189.11  the entrance door is behind the front wheels.  A type C school 
189.12  bus has a maximum length of 45 feet.  
189.13     (4) A "type D school bus" is a body installed upon a 
189.14  chassis, with the engine mounted in the front, midship or rear, 
189.15  with a gross vehicle weight rating of more than 10,000 pounds, 
189.16  designed for carrying more than ten persons.  The engine may be 
189.17  behind the windshield and beside the driver's seat; it may be at 
189.18  the rear of the bus, behind the rear wheels, or midship between 
189.19  the front and rear axles.  The entrance door is ahead of the 
189.20  front wheels.  A type D school bus has a maximum length of 45 
189.21  feet.  
189.22     (5) Type III school buses and type III Head Start buses are 
189.23  restricted to passenger cars, station wagons, vans, and buses in 
189.24  service after January 1, 1999, having an original a maximum 
189.25  manufacturer's rated seating capacity of ten or fewer people, 
189.26  including the driver, and a gross vehicle weight rating of 
189.27  10,000 pounds or less.  In this subdivision, "gross vehicle 
189.28  weight rating" means the value specified by the manufacturer as 
189.29  the loaded weight of a single vehicle.  A "type III school bus" 
189.30  and "type III Head Start bus" must not be outwardly equipped and 
189.31  identified as a type A, B, C, or D school bus or type A, B, C, 
189.32  or D Head Start bus.  A van or bus converted to a seating 
189.33  capacity of ten or fewer and placed in service on or after 
189.34  August 1, 1999, must have been originally manufactured to comply 
189.35  with the passenger safety standards. 
189.36     Sec. 41.  Minnesota Statutes 1998, section 169.03, 
190.1   subdivision 6, is amended to read: 
190.2      Subd. 6.  [WORKING ON HIGHWAY.] (a) The provisions of this 
190.3   chapter shall not apply to persons, motor vehicles, and other 
190.4   equipment while actually engaged in work upon the highway, 
190.5   except as provided in paragraphs (b) and (c).  
190.6      (b) This chapter shall apply to those persons and vehicles 
190.7   when traveling to or from such work, except that persons 
190.8   operating equipment owned, rented or hired by road authorities 
190.9   shall be exempt from the width, height and length provisions of 
190.10  sections 169.80 and 169.81 and shall be exempt from the weight 
190.11  limitations of this chapter while engaged in snow or ice removal 
190.12  and while engaged in flood control operations on behalf of the 
190.13  state or a local governmental unit. 
190.14     (c) Sections 169.121 to 169.129 and 169.444 apply to 
190.15  persons while actually engaged in work upon the highway. 
190.16     Sec. 42.  Minnesota Statutes 1998, section 171.3215, 
190.17  subdivision 2, is amended to read: 
190.18     Subd. 2.  [CANCELLATION FOR DISQUALIFYING AND OTHER 
190.19  OFFENSES.] Within ten days of receiving notice under section 
190.20  631.40, subdivision 1a, or otherwise receiving notice for a 
190.21  nonresident driver, that a school bus driver has been convicted 
190.22  of a disqualifying offense, the commissioner shall permanently 
190.23  cancel the school bus driver's endorsement on the offender's 
190.24  driver's license and in the case of a nonresident, the driver's 
190.25  privilege to operate a school bus in Minnesota.  A school bus 
190.26  driver whose endorsement or privilege to operate a school bus in 
190.27  Minnesota has been permanently canceled may not apply for 
190.28  reinstatement.  Within ten days of receiving notice under 
190.29  section 631.40, subdivision 1a, or otherwise receiving notice 
190.30  for a nonresident driver, that a school bus driver has been 
190.31  convicted of a gross misdemeanor, or a violation of section 
190.32  169.121, 169.129, or a similar statute or ordinance from another 
190.33  state, and within ten days of revoking a school bus driver's 
190.34  license under section 169.123, the commissioner shall cancel the 
190.35  school bus driver's endorsement on the offender's driver's 
190.36  license or the nonresident's privilege to operate a school bus 
191.1   in Minnesota for five years.  After five years, a school bus 
191.2   driver may apply to the commissioner for reinstatement.  Even 
191.3   after five years, cancellation of a school bus driver's 
191.4   endorsement or a nonresident's privilege to operate a school bus 
191.5   in Minnesota for a violation under section 169.121, 169.123, 
191.6   169.129, or a similar statute or ordinance from another state, 
191.7   shall remain in effect until the driver provides proof of 
191.8   successful completion of an alcohol or controlled substance 
191.9   treatment program.  For a first offense, proof of completion is 
191.10  required only if treatment was ordered as part of a chemical use 
191.11  assessment.  Within ten days of receiving notice under section 
191.12  631.40, subdivision 1a, or otherwise receiving notice for a 
191.13  nonresident driver, that a school bus driver has been convicted 
191.14  of a fourth moving violation in the last three years, the 
191.15  commissioner shall cancel the school bus driver's endorsement on 
191.16  the offender's driver's license or the nonresident's privilege 
191.17  to operate a school bus in Minnesota until one year has elapsed 
191.18  since the last conviction.  A school bus driver who has no new 
191.19  convictions after one year may apply for reinstatement.  Upon 
191.20  canceling the offender's school bus driver's endorsement, the 
191.21  commissioner shall immediately notify the licensed offender of 
191.22  the cancellation in writing, by depositing in the United States 
191.23  post office a notice addressed to the licensed offender at the 
191.24  licensed offender's last known address, with postage prepaid 
191.25  thereon. 
191.26     Sec. 43.  Minnesota Statutes 1998, section 171.3215, 
191.27  subdivision 4, is amended to read: 
191.28     Subd. 4.  [WAIVER OF PERMANENT CANCELLATION.] (a) The 
191.29  commissioner of public safety or the commissioner's designee, in 
191.30  consultation with the division of driver and vehicle services, 
191.31  may waive the permanent cancellation requirement of this section 
191.32  171.3215 for a person convicted of a misdemeanor, a gross 
191.33  misdemeanor, a nonfelony violation of chapter 152, or a felony 
191.34  that is not a violent crime under section 609.1095.  
191.35     (b) After notice to the requesting school district and 
191.36  contract provider of school bus transportation, the commissioner 
192.1   may waive the permanent cancellation requirement after ten years 
192.2   have elapsed since the person was convicted of a violation of 
192.3   section 609.582, subdivision 2, 3, or 4. 
192.4      Sec. 44.  Minnesota Statutes 1998, section 181.101, is 
192.5   amended to read: 
192.6      181.101 [WAGES; HOW OFTEN PAID.] 
192.7      Every employer must pay all wages earned by an employee at 
192.8   least once every 30 31 days on a regular pay day designated in 
192.9   advance by the employer regardless of whether the employee 
192.10  requests payment at longer intervals.  Unless paid earlier, the 
192.11  wages earned during the first half of the first 30-day 31-day 
192.12  pay period become due on the first regular payday following the 
192.13  first day of work.  If wages earned are not paid, the 
192.14  commissioner of labor and industry or the commissioner's 
192.15  representative may demand payment on behalf of an employee.  If 
192.16  payment is not made within ten days of demand, the commissioner 
192.17  may charge and collect the wages earned and a penalty in the 
192.18  amount of the employee's average daily earnings at the rate 
192.19  agreed upon in the contract of employment, not exceeding 15 days 
192.20  in all, for each day beyond the ten-day limit following the 
192.21  demand.  Money collected by the commissioner must be paid to the 
192.22  employee concerned.  This subdivision section does not prevent 
192.23  an employee from prosecuting a claim for wages.  This section 
192.24  does not prevent a school district or other public school entity 
192.25  from paying any wages earned by its employees during a school 
192.26  year on regular pay days in the manner provided by an applicable 
192.27  contract or collective bargaining agreement, or a personnel 
192.28  policy adopted by the governing board.  For purposes of this 
192.29  section, "employee" includes a person who performs agricultural 
192.30  labor as defined in section 181.85, subdivision 2.  For purposes 
192.31  of this section, wages are earned on the day an employee works. 
192.32     Sec. 45.  Minnesota Statutes 1998, section 209.07, is 
192.33  amended by adding a subdivision to read: 
192.34     Subd. 4.  [SCHOOL DISTRICT BOARD ELECTION; SURETY BOND 
192.35  REQUIREMENTS.] If an election approving the issuance of bonds by 
192.36  a school district is contested, the contestant shall file in the 
193.1   district court a surety bond of at least $5,000 or a greater 
193.2   amount determined necessary by the court to provide security for 
193.3   costs of the contest to the school district, including any 
193.4   additional costs that may be incurred by the school district if 
193.5   the bond issue is delayed.  The court may waive the requirements 
193.6   of this subdivision to the extent it finds that there is a 
193.7   reasonable likelihood that the contestant will prevail and that 
193.8   filing the bond would impose an undue hardship.  If the surety 
193.9   bond is not filed within the time allowed by the court, the 
193.10  contest shall be dismissed with prejudice. 
193.11     Sec. 46.  Laws 1997, First Special Session chapter 4, 
193.12  article 5, section 22, is amended to read: 
193.13     Sec. 20.  [GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING 
193.14  STANDARDS.] 
193.15     Subdivision 1.  [ESTABLISHMENT.] A grant program to promote 
193.16  professional teaching standards through the national board for 
193.17  professional teaching standards for fiscal year 1998 is 
193.18  established to provide eligible teachers with the opportunity to 
193.19  receive national board for professional teaching standards 
193.20  certification and to reward teachers who have already received 
193.21  such certification. 
193.22     Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
193.23  licensed K-12 school teacher employed in a state school.  To be 
193.24  eligible for a grant, the teacher must have been employed as a 
193.25  teacher for a minimum of five school years and demonstrate 
193.26  either that the national board for professional teaching 
193.27  standards has accepted the teacher as a candidate for board 
193.28  certification or that the teacher already has received board 
193.29  certification. 
193.30     Subd. 3.  [APPLICATION PROCESS.] To obtain a grant to 
193.31  participate in the national board for professional teaching 
193.32  standards certification process or to receive a reward for 
193.33  already completing the board certification process, a teacher 
193.34  must submit an application to the commissioner of children, 
193.35  families, and learning in the form and manner the commissioner 
193.36  establishes.  The applicant must demonstrate either that the 
194.1   national board for professional teaching standards has accepted 
194.2   the teacher as a candidate for board certification or that the 
194.3   teacher already has received board certification.  The 
194.4   commissioner shall consult with the state board of teaching when 
194.5   reviewing the applications. 
194.6      Subd. 4.  [GRANT AWARDS; PROCEEDS.] (a) The commissioner 
194.7   may award matching grants of $1,000 each to for eligible 
194.8   teachers who provide a matching amount through collaboration 
194.9   with either a school district, professional organization, or 
194.10  both and are accepted as candidates for national board for 
194.11  professional teaching standards certification.  Grant recipients 
194.12  shall use the grant to participate in the certification 
194.13  process.  The grant award shall be paid to the national board 
194.14  for professional teaching standards in the teacher's name.  
194.15  Within 24 months of receiving certification, a grant recipient 
194.16  must satisfactorily complete one year of teaching service in a 
194.17  state school the certification process or repay the state the 
194.18  amount of the grant, except if the commissioner determines that 
194.19  death or disability prevents the grant recipient from providing 
194.20  the one year of teaching service. 
194.21     (b) The commissioner may award grants to eligible teachers 
194.22  who have earned national board for professional teaching 
194.23  standards certification.  The amount of each grant shall not 
194.24  exceed $1,000 and the commissioner shall establish criteria to 
194.25  determine the actual amount of each grant.  Grant recipients 
194.26  shall use the grant proceeds for educational purposes, including 
194.27  purchasing instructional materials, equipment, or supplies and 
194.28  realizing professional development opportunities.  
194.29     Subd. 5.  [REGIONAL COORDINATORS.] The state shall provide 
194.30  the equivalent of four full-time regional coordinators with two 
194.31  located in the seven-county metropolitan area and two located in 
194.32  greater Minnesota.  $25,000 per year, for the first two years 
194.33  only, shall be provided to cover expenses of the regional 
194.34  coordinators including, but not limited to, travel, meetings, 
194.35  web page maintenance, and cost related to supporting candidate's 
194.36  expenses.  After the first two years, individual school 
195.1   districts must negotiate with the exclusive representative of 
195.2   the teachers in the district for coordinator positions. 
195.3      Sec. 47.  [ALTERNATIVE PATHWAYS FOR TEACHER PREPARATION.] 
195.4      Subdivision 1.  [ESTABLISHMENT.] A program is established 
195.5   to allow Minnesota school districts, in collaboration with 
195.6   accredited teacher preparation institutions, to offer 
195.7   undergraduate and graduate teacher preparation opportunities.  
195.8   The program must provide teacher preparation opportunities that 
195.9   effectively address the needs of different types of schools, 
195.10  students, and teachers. 
195.11     Subd. 2.  [ELIGIBILITY; PROGRAM USES; EMPLOYMENT 
195.12  TERMS.] (a) An applicant under this program must be a school 
195.13  district.  The school district must collaborate with an 
195.14  accredited teacher preparation program and an exclusive 
195.15  representative of the teachers in the district.  The program 
195.16  must be used to assist in improving teacher preparation by 
195.17  placing teacher education students in preschool, elementary, and 
195.18  secondary classrooms or other education settings under the 
195.19  supervision of a licensed classroom teacher. 
195.20     (b) Each school district participating in this program may 
195.21  select the teacher preparation model that best promotes 
195.22  understanding the needs of each educational system or 
195.23  institution.  For example: 
195.24     (1) a public school educator may teach courses that assist 
195.25  in preparing future educators or take professional development 
195.26  courses; or 
195.27     (2) a post-secondary teacher may teach courses at the 
195.28  school district or mentor student teachers. 
195.29     Participation is not limited to one school or institution 
195.30  and may involve other participants, including parent/community 
195.31  groups, teacher organizations, and business groups.  
195.32  Participating schools and institutions are encouraged to develop 
195.33  program components that engage nontraditional teacher 
195.34  preparation students. 
195.35     (c) Temporary placements made under this program must not 
195.36  have a negative effect on participants' salaries, seniority, or 
196.1   other benefits.  Specifically, temporary placements of teachers 
196.2   may not displace or cause any reduction in the number of 
196.3   nonovertime hours worked, wages, or benefits of a currently 
196.4   employed teacher.  Notwithstanding Minnesota Statutes, sections 
196.5   122A.16 and 123B.02, subdivision 14, a member of the staff of a 
196.6   post-secondary institution may teach in a preschool, elementary 
196.7   school, secondary school, or other education settings, or 
196.8   perform a service agreed upon under this section for which a 
196.9   license would otherwise be required without holding the 
196.10  applicable license.  In addition, a licensed educator employed 
196.11  by a school district may teach or perform a service, agreed upon 
196.12  under this section, at a post-secondary institution without 
196.13  meeting the applicable qualifications of the post-secondary 
196.14  institution.  A district is not subject to Minnesota Statutes, 
196.15  section 127A.43, as a result of entering into an agreement 
196.16  according to this section that enables a post-secondary educator 
196.17  to teach or provide services in the district.  All arrangements 
196.18  and details regarding an exchange must be mutually agreed to by 
196.19  each participating school district and post-secondary 
196.20  institution before implementing the exchange and must not 
196.21  violate any term or condition of the participating school 
196.22  district's collective bargaining agreement. 
196.23     (d) An educator who held a temporary position or an 
196.24  exchanged position under this section must be continued in or 
196.25  restored to the position previously held, or to a position of 
196.26  like seniority, status, and pay upon return.  Retirement 
196.27  benefits under an employer-sponsored pension or retirement plan 
196.28  must not be reduced because of time spent on an exchange or 
196.29  temporary position under this section. 
196.30     (e) An educator who is continued in or restored to a 
196.31  position under paragraph (d): 
196.32     (1) must be continued or restored without loss of 
196.33  seniority; and 
196.34     (2) may participate in insurance or other benefits offered 
196.35  by the employer under its established rules and practices. 
196.36     Subd. 3.  [APPLICATION PROCESS.] To participate in this 
197.1   program, a school district must submit an application to the 
197.2   commissioner of children, families, and learning in the form and 
197.3   manner established by the commissioner.  The application must 
197.4   describe how the applicant will improve teacher education by 
197.5   providing undergraduate or graduate teacher preparation 
197.6   opportunities in order to effectively address the needs of 
197.7   different types of schools, students, and teachers, and how the 
197.8   applicant will use technology to implement the program.  The 
197.9   commissioner may require additional information from an 
197.10  applicant. 
197.11     Subd. 4.  [PROGRAM PARTICIPANTS; MONETARY AWARDS.] (a) When 
197.12  selecting program participants, the commissioner must determine: 
197.13     (1) whether an applicant has met the requirements of this 
197.14  section; 
197.15     (2) whether the location of a program is particularly 
197.16  suitable for realizing the purpose of this section; 
197.17     (3) the number of teacher candidates, teachers, and 
197.18  students who would participate in the program; 
197.19     (4) the ability of the applicant to demonstrate the 
197.20  positive effect of the existing program on students enrolled in 
197.21  a participating school district by using standardized test 
197.22  scores, the rate at which students pass the state's reading, 
197.23  math, and writing basic skills test, or other valid and reliable 
197.24  assessment measures; 
197.25     (5) whether public post-secondary institutions with board 
197.26  of teaching approved teacher preparation programs and other 
197.27  organizations representing parents, business interests, and 
197.28  community interests are integral participants in the proposed 
197.29  program; 
197.30     (6) whether the program addresses the shortage of teachers 
197.31  in any areas identified by the commissioner of children, 
197.32  families, and learning; and 
197.33     (7) the ability of the applicant to provide information 
197.34  about the program to interested school districts and 
197.35  post-secondary institutions. 
197.36     (b) The commissioner may select applicants to participate 
198.1   in this program for the 1999-2000 school year and later.  
198.2   Participants must be located throughout the state.  The 
198.3   commissioner must provide one-time start-up costs of up to 
198.4   $20,000 per participating site. 
198.5      Subd. 5.  [POST-SECONDARY INSTITUTION FUNDING.] 
198.6   Notwithstanding other law to the contrary, and consistent with 
198.7   subdivision 6, a post-secondary institution participating in 
198.8   this program must provide the instructional costs of educating 
198.9   students in teacher preparation programs and may charge the 
198.10  students the costs of tuition. 
198.11     Subd. 6.  [PARTICIPANTS' FEES.] A school district 
198.12  participating in this program may charge reasonable fees to a 
198.13  student in a teacher preparation program placed in a preschool, 
198.14  elementary, or secondary classroom to receive teacher training. 
198.15     Subd. 7.  [EVALUATION.] The commissioner must contract with 
198.16  an independent qualified expert to evaluate the impact of the 
198.17  program on teacher efficacy and student performance and present 
198.18  a report to the commissioner and the education committees of the 
198.19  legislature by February 15, 2005. 
198.20     Sec. 48.  [BOARD OF TEACHING.] 
198.21     The board of teaching must communicate with school 
198.22  districts, including district human resources personnel, on the 
198.23  procedures available to districts for expediting the hiring of 
198.24  substitute teachers. 
198.25     Sec. 49.  [TRANSITION.] 
198.26     Notwithstanding Minnesota Statutes, section 15.0597, the 
198.27  terms of persons who are members appointed by the governor 
198.28  before the effective date of section 8, shall have their term 
198.29  end on July 31 of the year following the last year of their 
198.30  appointment. 
198.31     Sec. 50.  [MODEL STATE POLICY ON STUDENT RECORDS.] 
198.32     Subdivision 1.  [COMMISSIONER OF ADMINISTRATION.] By 
198.33  December 1, 1999, the commissioner of administration shall 
198.34  compile and make available a model policy that accurately 
198.35  reflects state and federal data regulations regarding access to 
198.36  and dissemination of educational data by schools and by other 
199.1   government agencies who serve school-aged children, and access 
199.2   by schools to data about students who have exhibited violent 
199.3   behaviors.  The model policy shall include procedures and other 
199.4   guidelines detailing allowable use and transfer of educational 
199.5   data according to state and federal law. 
199.6      Subd. 2.  [RECOMMENDATIONS TO THE LEGISLATURE.] By January 
199.7   15, 2000, the commissioner, in consultation with representatives 
199.8   from federal agencies, state agencies, county governments, 
199.9   school districts, cities, and parents who have an interest in 
199.10  educational and other applicable data, shall make 
199.11  recommendations to the legislature regarding necessary 
199.12  clarifications of state law and any enforcement mechanisms 
199.13  identified as essential for the proper sharing of data. 
199.14     Sec. 51.  [SCHOOL YEAR START DATE.] 
199.15     Subdivision 1.  [GOODHUE.] Notwithstanding Minnesota 
199.16  Statutes, section 120A.40, and Laws 1997, First Special Session 
199.17  chapter 4, article 7, section 49, subdivision 1, for the 
199.18  1999-2000 school year independent school district No. 253, 
199.19  Goodhue, may begin the school year on August 30, 1999. 
199.20     Subd. 2.  [MILACA.] Notwithstanding Minnesota Statutes 
199.21  1996, section 126.12, subdivision 1, and Laws 1997, First 
199.22  Special Session chapter 4, article 7, section 49, subdivision 1, 
199.23  for the 1998-1999 school year only, independent school district 
199.24  No. 912, Milaca, may begin the school year on August 24, 1998. 
199.25     Subd. 3.  [WORTHINGTON.] Notwithstanding Minnesota 
199.26  Statutes, section 120A.40, and Laws 1997, First Special Session 
199.27  chapter 4, article 7, section 49, subdivision 1, for the 
199.28  1999-2000 school year, independent school district No. 518, 
199.29  Worthington, may begin the school year on August 23, 1999. 
199.30     Sec. 52.  [STATE BOARD OF EDUCATION CHANGED TO COMMISSIONER 
199.31  OF CHILDREN, FAMILIES, AND LEARNING; OTHER CHANGES.] 
199.32     The provisions of Laws 1998, chapter 398, article 5, 
199.33  section 55, and related sections apply except as provided under 
199.34  this article. 
199.35     Sec. 53.  [APPROPRIATIONS.] 
199.36     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
200.1   LEARNING.] The following sums are appropriated from the general 
200.2   fund to the department of children, families, and learning in 
200.3   the fiscal years indicated. 
200.4      Subd. 2.  [ALTERNATIVE PATHWAYS FOR TEACHER 
200.5   PREPARATION.] For providing program participants under section 
200.6   58 with start-up costs:  
200.7          $100,000       .....     2000
200.8      This appropriation is available until June 30, 2001. 
200.9      The commissioner shall award a $20,000 grant to independent 
200.10  school district No. 138, North Branch, if the district meets the 
200.11  requirements of the program.  
200.12     Subd. 3.  [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For 
200.13  collaborative urban educator programs providing alternative 
200.14  pathways to licensure: 
200.15       $1,300,000     .....     2000
200.16       $1,300,000     .....     2001
200.17     $400,000 each year is for the Collaborative Urban Educators 
200.18  Program at St. Thomas University; $400,000 each year is for 
200.19  Hamline University and $500,000 each year is for the South East 
200.20  Asia Teachers Program at Concordia University, St. Paul.  
200.21     Any balance in the first year does not cancel but is 
200.22  available in the second year. 
200.23     Subd. 4.  [PILLAGER REIMBURSEMENT.] For independent school 
200.24  district No. 116, Pillager, for reimbursement of extraordinary 
200.25  legal expenses due to a lawsuit with statewide implications: 
200.26         $325,000     .....     2000 
200.27     Subd. 5.  [PARTNERS FOR QUALITY SCHOOL IMPROVEMENT.] For 
200.28  the school improvement pilot training program established in 
200.29  Laws 1997, First Special Session chapter 4, article 7, section 
200.30  47: 
200.31         $500,000     .....     2000 
200.32     This appropriation is available until June 30, 2001.  
200.33     Subd. 6.  [PROFESSIONAL TEACHING STANDARDS.] For grant 
200.34  awards for national board for professional teaching standards 
200.35  certification and for regional coordinators to counsel and 
200.36  assist teacher candidates for the certification: 
201.1          $400,000     .....     2000 
201.2      This appropriation is available until June 30, 2001.  This 
201.3   is a one-time appropriation. 
201.4      Sec. 54.  [REPEALER.] 
201.5      Minnesota Statutes 1998, sections 127A.42, subdivision 8; 
201.6   127A.60, subdivisions 2, 3, and 4; 127A.61; 127A.62, subdivision 
201.7   2; 127A.64; and 127A.66, subdivision 1, are repealed effective 
201.8   December 31, 1999. 
201.9      Sec. 55.  [EFFECTIVE DATES.] 
201.10     Sections 1; 7, paragraphs (c) and (e); 27; 28; 37; 44; 47, 
201.11  and 49 are effective the day following final enactment.  
201.12  Notwithstanding any law to the contrary, section 2 is effective 
201.13  for the 1999-2000 school year and thereafter.  Sections 3, 9 to 
201.14  12, 21, 26, 29, 30, 32 to 36, and 52 are effective December 31, 
201.15  1999.  Section 38 is effective for the 1999-2000 school year and 
201.16  thereafter.  Section 51, subdivision 2, is effective retroactive 
201.17  to July 1, 1998. 
201.18                             ARTICLE 10 
201.19                           STATE AGENCIES 
201.20     Section 1.  Minnesota Statutes 1998, section 125A.64, is 
201.21  amended by adding a subdivision to read: 
201.22     Subd. 6.  [EXEMPTION TO SEPTEMBER 1 SCHOOL START 
201.23  RESTRICTION.] Notwithstanding Minnesota Statutes, section 
201.24  120A.40, subdivision 1, the board of the Minnesota state 
201.25  academies for the deaf and blind may begin the school year any 
201.26  day prior to September 1. 
201.27     Sec. 2.  Minnesota Statutes 1998, section 129C.10, is 
201.28  amended by adding a subdivision to read: 
201.29     Subd. 8.  [EXEMPTION TO SEPTEMBER 1 SCHOOL START 
201.30  RESTRICTION.] Notwithstanding Minnesota Statutes, section 
201.31  120A.40, subdivision 1, the Lola and Rudy Perpich Minnesota 
201.32  center for arts education may begin the school year any day 
201.33  prior to September 1. 
201.34     Sec. 3.  Minnesota Statutes 1998, section 626.556, 
201.35  subdivision 10b, is amended to read: 
201.36     Subd. 10b.  [DUTIES OF COMMISSIONER; NEGLECT OR ABUSE IN 
202.1   FACILITY.] (a) This section applies to the commissioner of 
202.2   children, families, and learning.  The commissioner of the 
202.3   agency responsible for assessing or investigating the report 
202.4   shall immediately investigate if the report alleges that: 
202.5      (1) a child who is in the care of a facility as defined in 
202.6   subdivision 2 is neglected, physically abused, or sexually 
202.7   abused by an individual in that facility, or has been so 
202.8   neglected or abused by an individual in that facility within the 
202.9   three years preceding the report; or 
202.10     (2) a child was neglected, physically abused, or sexually 
202.11  abused by an individual in a facility defined in subdivision 2, 
202.12  while in the care of that facility within the three years 
202.13  preceding the report.  
202.14     The commissioner shall arrange for the transmittal to the 
202.15  commissioner of reports received by local agencies and may 
202.16  delegate to a local welfare agency the duty to investigate 
202.17  reports.  In conducting an investigation under this section, the 
202.18  commissioner has the powers and duties specified for local 
202.19  welfare agencies under this section.  The commissioner or local 
202.20  welfare agency may interview any children who are or have been 
202.21  in the care of a facility under investigation and their parents, 
202.22  guardians, or legal custodians. 
202.23     (b) Prior to any interview, the commissioner or local 
202.24  welfare agency shall notify the parent, guardian, or legal 
202.25  custodian of a child who will be interviewed in the manner 
202.26  provided for in subdivision 10d, paragraph (a).  If reasonable 
202.27  efforts to reach the parent, guardian, or legal custodian of a 
202.28  child in an out-of-home placement have failed, the child may be 
202.29  interviewed if there is reason to believe the interview is 
202.30  necessary to protect the child or other children in the 
202.31  facility.  The commissioner or local agency must provide the 
202.32  information required in this subdivision to the parent, 
202.33  guardian, or legal custodian of a child interviewed without 
202.34  parental notification as soon as possible after the interview.  
202.35  When the investigation is completed, any parent, guardian, or 
202.36  legal custodian notified under this subdivision shall receive 
203.1   the written memorandum provided for in subdivision 10d, 
203.2   paragraph (c). 
203.3      (c) In conducting investigations under this subdivision the 
203.4   commissioner or local welfare agency shall obtain access to 
203.5   information consistent with subdivision 10, paragraphs (h), (i), 
203.6   and (j). 
203.7      (d) Except for foster care and family child care, the 
203.8   commissioner has the primary responsibility for the 
203.9   investigations and notifications required under subdivisions 10d 
203.10  and 10f for reports that allege maltreatment related to the care 
203.11  provided by or in facilities licensed by the commissioner.  The 
203.12  commissioner may request assistance from the local social 
203.13  service agency. 
203.14     Sec. 4.  [TRANSFER OF PROGRAMS.] 
203.15     The powers and duties of the department of children, 
203.16  families, and learning with respect to drug policy and violence 
203.17  prevention under Minnesota Statutes 1998, sections 119A.25, 
203.18  119A.26, 119A.27, 119A.28, 119A.29, 119A.31, 119A.32, 119A.33, 
203.19  and 119A.34, are transferred to the department of public safety 
203.20  under Minnesota Statutes, section 15.039. 
203.21     Sec. 5.  [APPROPRIATIONS; DEPARTMENT OF CHILDREN, FAMILIES, 
203.22  AND LEARNING.] 
203.23     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
203.24  LEARNING.] The sums indicated in this section are appropriated 
203.25  from the general fund unless otherwise indicated to the 
203.26  department of children, families, and learning for the fiscal 
203.27  years designated. 
203.28     Subd. 2.  [TEACHING AND LEARNING PROGRAM.] (a) For the 
203.29  teaching and learning program in the department of children, 
203.30  families, and learning: 
203.31       $9,979,000     .....     2000 
203.32       $9,926,000     .....     2001 
203.33     (b) Any balance the first year does not cancel but is 
203.34  available in the second year. 
203.35     (c) $21,000 each year is from the trunk highway fund. 
203.36     (d) $673,000 in 2000 and $678,000 in 2001 is for the board 
204.1   of teaching. 
204.2      (e) Notwithstanding Minnesota Statutes, section 15.53, 
204.3   subdivision 2, the commissioner of children, families, and 
204.4   learning may contract with a school district for a period no 
204.5   longer than five consecutive years to work in the development or 
204.6   implementation of the graduation rule.  The commissioner may 
204.7   contract for services and expertise as necessary.  The contracts 
204.8   are not subject to Minnesota Statutes, section 16B.06. 
204.9      Subd. 3.  [LIFEWORK DEVELOPMENT PROGRAM.] For the lifework 
204.10  development program in the department of children, families, and 
204.11  learning: 
204.12       $1,162,000     .....     2000 
204.13       $1,183,000     .....     2001 
204.14     Any balance the first year does not cancel but is available 
204.15  in the second year. 
204.16     Subd. 4.  [MANAGEMENT AND SUPPORT SERVICES PROGRAM.] (a) 
204.17  For the management and support services program in the 
204.18  department of children, families, and learning: 
204.19      $16,987,000     .....     2000 
204.20      $14,421,000     .....     2001 
204.21     (b) Any balance the first year does not cancel but is 
204.22  available in the second year. 
204.23     (c) $165,000 in 2000 is for the state board of education.  
204.24  Any functions of the state board of education that are not 
204.25  specifically transferred to another agency are transferred to 
204.26  the department of children, families, and learning under 
204.27  Minnesota Statutes, section 15.039.  For the position that is 
204.28  classified, upon transferring the responsibilities, the current 
204.29  incumbent is appointed to the classified position without exam 
204.30  or probationary period. 
204.31     (d) $2,000,000 in 2000 is for litigation costs and may only 
204.32  be used for those purposes.  This is a one-time appropriation. 
204.33     Subd. 5.  [OFFICE OF COMMUNITY SERVICES PROGRAM.] For the 
204.34  office of community services program in the department of 
204.35  children, families, and learning: 
204.36       $4,188,000     .....     2000 
205.1        $4,255,000     .....     2001 
205.2      Any balance the first year does not cancel but is available 
205.3   the second year. 
205.4      Sec. 6.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
205.5   CENTER FOR ARTS EDUCATION.] 
205.6      The sums indicated in this section are appropriated from 
205.7   the general fund to the center for arts education for the fiscal 
205.8   years designated: 
205.9        $7,239,000     .....     2000
205.10       $7,400,000     .....     2001
205.11     Of each year's appropriation, $154,000 is to fund artist 
205.12  and arts organization participation in the education residency 
205.13  and education technology projects, $75,000 is for school support 
205.14  for the residency project, $121,000 is for further development 
205.15  of the partners:  arts and school for students (PASS) program, 
205.16  including pilots, and $220,000 is to fund the center for arts 
205.17  education base for asset preservation and facility repair.  The 
205.18  guidelines for the education residency project and the pass 
205.19  program shall be developed and defined by the center for arts 
205.20  education in cooperation with the Minnesota arts board.  The 
205.21  Minnesota arts board shall participate in the review and 
205.22  allocation process.  The center for arts education and the 
205.23  Minnesota arts board shall cooperate to fund these projects. 
205.24     Any balance in the first year does not cancel but is 
205.25  available in the second year. 
205.26     Sec. 7.  [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 
205.27     (a) The sums indicated in this section are appropriated 
205.28  from the general fund to the Minnesota state academies for the 
205.29  deaf and the blind for the fiscal years designated:  
205.30      $10,039,000    .....     2000
205.31      $10,258,000    .....     2001 
205.32     (b) Any balance in the first year does not cancel but is 
205.33  available in the second year. 
205.34     (c) $75,000 each year is for asset preservation and 
205.35  facility repair.  
205.36     (d) $15,000 each year is for the cost of holding board 
206.1   meetings in Faribault. 
206.2      Sec. 8.  [REVISOR INSTRUCTION.] 
206.3      (a) In the next and subsequent editions of Minnesota 
206.4   Statutes and Minnesota Rules, the revisor shall change all 
206.5   references of the "Lola and Rudy Perpich Minnesota center for 
206.6   arts education" to the "Perpich center for arts education." 
206.7      (b) In the next and subsequent editions of Minnesota 
206.8   Statutes the revisor shall renumber each section in column A 
206.9   with the corresponding number in column B.  The revisor shall 
206.10  correct all cross-references to be consistent with the 
206.11  renumbering. 
206.12             Column A               Column B
206.13             119A.25                299A.291
206.14             119A.26                299A.292
206.15             119A.27                299A.293
206.16             119A.28                299A.294
206.17             119A.29                299A.295
206.18             119A.31                299A.296
206.19             119A.32                299A.297
206.20             119A.33                299A.298
206.21             119A.34                299A.299
206.22     Sec. 9.  [REPEALER.] 
206.23     Minnesota Statutes 1998, section 119A.04, subdivision 5, is 
206.24  repealed. 
206.25     Sec. 10.  [EFFECTIVE DATE.] 
206.26     Section 2 is effective the day following final enactment.