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             lifelong learning, facilities and technology, 
  1.5             education excellence, other programs, education 
  1.6             policy, libraries, and state agencies; repealing, 
  1.7             modifying, and expanding certain education provisions; 
  1.8             providing for rulemaking; appropriating money; 
  1.9             amending Minnesota Statutes 1998, sections 13.46, 
  1.10            subdivision 2; 41D.02, subdivision 2; 120A.05, by 
  1.11            adding subdivisions; 120A.22, subdivisions 1 and 5; 
  1.12            120A.24, subdivision 1; 120A.40; 120B.11, subdivision 
  1.13            5; 120B.30, subdivision 1; 120B.35; 121A.06; 121A.11, 
  1.14            subdivision 1; 121A.15; 121A.23, subdivision 1; 
  1.15            121A.26; 121A.27; 121A.28; 121A.29, subdivision 1; 
  1.16            121A.32, subdivision 1; 121A.34; 121A.41, subdivision 
  1.17            10; 121A.43; 121A.55; 121A.61, subdivision 1; 121A.69, 
  1.18            subdivision 3; 122A.09, subdivisions 4 and 6; 122A.15; 
  1.19            122A.18, by adding subdivisions; 122A.19, subdivision 
  1.20            4; 122A.20, subdivisions 1 and 2; 122A.21; 122A.22; 
  1.21            122A.26, by adding a subdivision; 122A.28; 122A.40, 
  1.22            subdivisions 3, 5, 7, 8, 10, 16, and 19; 122A.41, 
  1.23            subdivisions 4 and 15; 122A.51; 122A.58, subdivision 
  1.24            1; 122A.60, subdivisions 1 and 3; 122A.68, 
  1.25            subdivisions 1 and 7; 122A.69; 122A.70, subdivision 2; 
  1.26            122A.91; 122A.92; 123A.05, subdivisions 2, 3, and by 
  1.27            adding a subdivision; 123A.06, subdivisions 1 and 2; 
  1.28            123A.48, subdivision 10; 123B.02, subdivisions 1, 2, 
  1.29            and 3; 123B.04, subdivisions 2 and 5; 123B.09, 
  1.30            subdivision 8; 123B.143, subdivision 1; 123B.195; 
  1.31            123B.36, subdivision 1; 123B.43; 123B.445; 123B.49, 
  1.32            subdivisions 1 and 4; 123B.51, subdivisions 1 and 5; 
  1.33            123B.53; 123B.54; 123B.57, subdivision 1; 123B.58, 
  1.34            subdivisions 3 and 4; 123B.59; 123B.61; 123B.63, 
  1.35            subdivisions 3 and 4; 123B.73, subdivision 1; 123B.75, 
  1.36            by adding a subdivision; 123B.77, subdivision 4; 
  1.37            123B.83, subdivisions 1 and 4; 123B.90, subdivisions 
  1.38            1, 2, and 3; 123B.91, subdivision 1; 123B.92, 
  1.39            subdivisions 2, 4, and 9; 124D.02, subdivision 1; 
  1.40            124D.03, subdivision 3, and by adding a subdivision; 
  1.41            124D.081, subdivisions 3 and 8; 124D.09, subdivisions 
  1.42            5, 6, 7, and 12; 124D.10, subdivisions 1, 3, 4, 5, 6, 
  1.43            11, 15, and 19; 124D.11, subdivisions 1, 4, 6, and by 
  1.44            adding a subdivision; 124D.115, subdivision 3; 
  1.45            124D.118, subdivisions 2 and 3; 124D.135, subdivision 
  1.46            3; 124D.20, subdivision 5; 124D.22, subdivision 3; 
  2.1             124D.28, subdivision 1; 124D.29, by adding a 
  2.2             subdivision; 124D.30, subdivision 3; 124D.34, 
  2.3             subdivision 4; 124D.35; 124D.37; 124D.40, subdivision 
  2.4             2; 124D.41; 124D.42, subdivision 7; 124D.453, 
  2.5             subdivisions 3 and 5; 124D.454, subdivision 5; 
  2.6             124D.46, subdivision 1; 124D.47, subdivision 2; 
  2.7             124D.49, subdivision 3; 124D.52, by adding a 
  2.8             subdivision; 124D.65, subdivisions 1, 4, 5, and 6; 
  2.9             124D.68, subdivision 9; 124D.69, subdivision 1; 
  2.10            124D.70; 124D.74, subdivision 1; 124D.86, subdivisions 
  2.11            1 and 3; 124D.88, subdivisions 2 and 3; 124D.89, 
  2.12            subdivision 1; 124D.892; 124D.894; 124D.90; 124D.94, 
  2.13            subdivisions 2, 3, and 4; 125A.023; 125A.027; 125A.03; 
  2.14            125A.07; 125A.08; 125A.09, subdivisions 1, 4, 6, and 
  2.15            11; 125A.10; 125A.15; 125A.18; 125A.21, subdivision 2; 
  2.16            125A.24; 125A.30; 125A.33; 125A.44; 125A.50, 
  2.17            subdivisions 2 and 5; 125A.51; 125A.52, subdivision 1; 
  2.18            125A.62; 125A.64; 125A.65, subdivisions 3, 5, 6, 7, 8, 
  2.19            and 10; 125A.68, subdivision 1; 125A.69, subdivisions 
  2.20            1 and 3; 125A.70, subdivision 2; 125A.71, subdivision 
  2.21            3; 125A.72; 125A.73; 125A.744, subdivision 3; 125A.75, 
  2.22            subdivisions 3 and 8; 125A.76, subdivisions 1, 2, 4, 
  2.23            and 5; 125A.79, subdivisions 1, 2, 4, and by adding 
  2.24            subdivisions; 125B.05; 125B.20; 126C.05, subdivisions 
  2.25            1, 3, 5, 6, and 7; 126C.10, subdivisions 1, 2, 4, 5, 
  2.26            6, 7, 8, 9, 10, 13, 14, 18, 19, 20, 21, and by adding 
  2.27            subdivisions; 126C.12, subdivisions 1 and 4; 126C.13, 
  2.28            subdivisions 1 and 2; 126C.15, subdivisions 1 and 2; 
  2.29            126C.17, subdivisions 1, 2, 4, 5, 6, and 9; 126C.22, 
  2.30            subdivision 2; 126C.31; 126C.40, subdivisions 1, 2, 3, 
  2.31            4, and 6; 126C.41, subdivision 2; 126C.42, 
  2.32            subdivisions 1 and 2; 126C.44; 126C.46; 126C.48, 
  2.33            subdivision 8; 126C.55, by adding a subdivision; 
  2.34            126C.63, subdivisions 5 and 8; 126C.69, subdivisions 
  2.35            2, 9, and 15; 127A.05, subdivisions 1, 3, and 4; 
  2.36            127A.06; 127A.41, subdivisions 5 and 7; 127A.42, 
  2.37            subdivisions 2, 5, and 6; 127A.44, subdivision 2; 
  2.38            127A.45, subdivisions 2, 3, 5, and by adding a 
  2.39            subdivision; 127A.47, subdivisions 1, 2, 7, and 8; 
  2.40            127A.49, subdivisions 2 and 3; 127A.51; 127A.60, 
  2.41            subdivision 1; 127A.66, subdivision 2; 128C.01, 
  2.42            subdivision 4; 128C.02, by adding a subdivision; 
  2.43            128C.12, subdivision 1; 128C.20, subdivisions 1 and 2; 
  2.44            129C.10, subdivision 3, and by adding a subdivision; 
  2.45            136D.281, subdivision 4; 136D.741, subdivision 4; 
  2.46            136D.88, subdivision 4; 169.01, subdivision 6; 169.03, 
  2.47            subdivision 6; 171.3215, subdivisions 2 and 4; 
  2.48            181.101; 209.07, by adding a subdivision; 241.021, 
  2.49            subdivision 1; 245A.04, by adding a subdivision; 
  2.50            272.02, subdivision 8; and 626.556, subdivision 10b, 
  2.51            and by adding a subdivision; Laws 1992, chapter 499, 
  2.52            article 7, section 31, as amended; Laws 1993, chapter 
  2.53            224, article 3, section 32, as amended; Laws 1995, 
  2.54            First Special Session chapter 3, article 12, section 
  2.55            7, as amended; Laws 1996, chapter 412, article 1, 
  2.56            section 35; Laws 1997, First Special Session chapter 
  2.57            4, article 1, section 61, subdivisions 1, 2, 3, as 
  2.58            amended, and 4; Laws 1997, First Special Session 
  2.59            chapter 4, article 2, sections 48 and 51, subdivision 
  2.60            29, as amended; Laws 1997, First Special Session 
  2.61            chapter 4, article 3, section 25, subdivision 6; Laws 
  2.62            1997, First Special Session chapter 4, article 5, 
  2.63            section 22; Laws 1997, First Special Session chapter 
  2.64            4, article 8, section 4; Laws 1997, First Special 
  2.65            Session chapter 4, article 9, sections 6, 7, 
  2.66            subdivision 2, and 13; Laws 1998, chapter 398, article 
  2.67            2, section 53; Laws 1998, chapter 398, article 9, 
  2.68            section 7; and Laws 1998, chapter 404, section 5, 
  2.69            subdivision 5; proposing coding for new law in 
  2.70            Minnesota Statutes, chapters 121A; 122A; 123A; 123B; 
  2.71            124D; 125A; 126C; 127A; and 128C; repealing Minnesota 
  3.1             Statutes 1998, sections 119A.04, subdivision 5; 
  3.2             120A.41; 120B.05; 120B.10; 120B.11, subdivisions 3, 4, 
  3.3             and 7; 120B.24; 121A.03, subdivision 3; 121A.11, 
  3.4             subdivision 2; 121A.16; 121A.23, subdivision 2; 
  3.5             121A.32, subdivisions 2, 4, and 5; 121A.41, 
  3.6             subdivision 3; 122A.162; 122A.19, subdivisions 2 and 
  3.7             4; 122A.32; 122A.33; 122A.40, subdivision 6; 122A.42; 
  3.8             122A.43, subdivisions 1, 2, 3, 4, and 6; 122A.45; 
  3.9             122A.49; 122A.52; 122A.53; 122A.54; 122A.55; 122A.56; 
  3.10            122A.57; 122A.71; 122A.72; 122A.75; 123A.06, 
  3.11            subdivisions 1 and 3; 123A.07; 123A.15, subdivision 1; 
  3.12            123A.44; 123A.441; 123A.442; 123A.443; 123A.444; 
  3.13            123A.445; 123A.446; 123B.02, subdivisions 5, 6, 9, 10, 
  3.14            11, 13, and 16; 123B.04, subdivision 4; 123B.11; 
  3.15            123B.147, subdivisions 1 and 3; 123B.15; 123B.16; 
  3.16            123B.17; 123B.18; 123B.19; 123B.40; 123B.49, 
  3.17            subdivisions 2 and 3; 123B.51, subdivisions 2, 3, and 
  3.18            4; 123B.57, subdivisions 4, 5, and 7; 123B.58; 
  3.19            123B.59, subdivision 7; 123B.63, subdivisions 1 and 2; 
  3.20            123B.64; 123B.66; 123B.67; 123B.68; 123B.69; 123B.744; 
  3.21            123B.84; 123B.87; 123B.88, subdivisions 11, 12, 13, 
  3.22            18, 20, 21, and 22; 123B.89; 123B.92, subdivisions 6, 
  3.23            7, 8, and 10; 123B.93; 123B.95, subdivision 3; 
  3.24            124D.02, subdivisions 2, 3, and 4; 124D.03, 
  3.25            subdivisions 5, 7, 9, and 10; 124D.06; 124D.07; 
  3.26            124D.081, subdivisions 1 and 7; 124D.09, subdivisions 
  3.27            2, 8, 25, and 26; 124D.10, subdivision 13; 124D.112; 
  3.28            124D.113; 124D.115, subdivisions 1 and 2; 124D.116; 
  3.29            124D.118, subdivision 1; 124D.12; 124D.121; 124D.122; 
  3.30            124D.123; 124D.124; 124D.125; 124D.126; 124D.127; 
  3.31            124D.128, subdivisions 1, 2, 3, 4, 5, 6, and 7; 
  3.32            124D.31; 124D.34, subdivision 5; 124D.43; 124D.453, 
  3.33            subdivision 1; 124D.46, subdivision 3; 124D.47, 
  3.34            subdivision 1; 124D.50, subdivisions 1, 2, and 3; 
  3.35            124D.60, subdivision 3; 124D.65, subdivisions 1, 2, 3, 
  3.36            8, 9, and 10; 124D.67; 124D.68, subdivision 1; 
  3.37            124D.72; 124D.81, subdivision 7; 124D.88, subdivision 
  3.38            1; 124D.895; 124D.90, subdivision 5; 124D.91; 124D.92; 
  3.39            124D.93; 125A.76, subdivision 6; 125A.77; 125A.79, 
  3.40            subdivision 3; 125B.02; 125B.07, subdivisions 1, 3, 
  3.41            and 5; 125B.09; 125B.11; 126C.05, subdivision 4; 
  3.42            126C.06; 127A.05, subdivision 5; 127A.41, subdivisions 
  3.43            4, 8, and 9; 127A.42, subdivision 8; 127A.60, 
  3.44            subdivisions 2, 3, and 4; 127A.61; 127A.62, 
  3.45            subdivision 2; 127A.64; and 127A.66, subdivision 1; 
  3.46            Laws 1995, First Special Session chapter 3, article 3, 
  3.47            section 11; Laws 1997, First Special Session chapter 
  3.48            4, article 1, section 62, subdivision 5; Laws 1997, 
  3.49            First Special Session chapter 4, article 2, section 
  3.50            51, subdivision 10; and Laws 1998, chapter 398, 
  3.51            article 2, sections 53 and 57; Minnesota Rules, parts 
  3.52            3500.3900; 3500.4000; 3500.4100; 3500.4200; 3500.4300; 
  3.53            and 3525.2470. 
  3.54  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  3.55                             ARTICLE 1 
  3.56                         GENERAL EDUCATION 
  3.57     Section 1.  Minnesota Statutes 1998, section 13.46, 
  3.58  subdivision 2, is amended to read: 
  3.59     Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
  3.60  a statute specifically provides a different classification, data 
  3.61  on individuals collected, maintained, used, or disseminated by 
  3.62  the welfare system is private data on individuals, and shall not 
  4.1   be disclosed except:  
  4.2      (1) according to section 13.05; 
  4.3      (2) according to court order; 
  4.4      (3) according to a statute specifically authorizing access 
  4.5   to the private data; 
  4.6      (4) to an agent of the welfare system, including a law 
  4.7   enforcement person, attorney, or investigator acting for it in 
  4.8   the investigation or prosecution of a criminal or civil 
  4.9   proceeding relating to the administration of a program; 
  4.10     (5) to personnel of the welfare system who require the data 
  4.11  to determine eligibility, amount of assistance, and the need to 
  4.12  provide services of additional programs to the individual; 
  4.13     (6) to administer federal funds or programs; 
  4.14     (7) between personnel of the welfare system working in the 
  4.15  same program; 
  4.16     (8) the amounts of cash public assistance and relief paid 
  4.17  to welfare recipients in this state, including their names, 
  4.18  social security numbers, income, addresses, and other data as 
  4.19  required, upon request by the department of revenue to 
  4.20  administer the property tax refund law, supplemental housing 
  4.21  allowance, early refund of refundable tax credits, and the 
  4.22  income tax.  "Refundable tax credits" means the dependent care 
  4.23  credit under section 290.067, the Minnesota working family 
  4.24  credit under section 290.0671, the property tax refund under 
  4.25  section 290A.04, and, if the required federal waiver or waivers 
  4.26  are granted, the federal earned income tax credit under section 
  4.27  32 of the Internal Revenue Code; 
  4.28     (9) between the department of human services and the 
  4.29  Minnesota department of economic security for the purpose of 
  4.30  monitoring the eligibility of the data subject for reemployment 
  4.31  insurance, for any employment or training program administered, 
  4.32  supervised, or certified by that agency, for the purpose of 
  4.33  administering any rehabilitation program, whether alone or in 
  4.34  conjunction with the welfare system, or to monitor and evaluate 
  4.35  the statewide Minnesota family investment program by exchanging 
  4.36  data on recipients and former recipients of food stamps, cash 
  5.1   assistance under chapter 256, 256D, 256J, or 256K, child care 
  5.2   assistance under chapter 119B, or medical programs under chapter 
  5.3   256B, 256D, or 256L; 
  5.4      (10) to appropriate parties in connection with an emergency 
  5.5   if knowledge of the information is necessary to protect the 
  5.6   health or safety of the individual or other individuals or 
  5.7   persons; 
  5.8      (11) data maintained by residential programs as defined in 
  5.9   section 245A.02 may be disclosed to the protection and advocacy 
  5.10  system established in this state according to Part C of Public 
  5.11  Law Number 98-527 to protect the legal and human rights of 
  5.12  persons with mental retardation or other related conditions who 
  5.13  live in residential facilities for these persons if the 
  5.14  protection and advocacy system receives a complaint by or on 
  5.15  behalf of that person and the person does not have a legal 
  5.16  guardian or the state or a designee of the state is the legal 
  5.17  guardian of the person; 
  5.18     (12) to the county medical examiner or the county coroner 
  5.19  for identifying or locating relatives or friends of a deceased 
  5.20  person; 
  5.21     (13) data on a child support obligor who makes payments to 
  5.22  the public agency may be disclosed to the higher education 
  5.23  services office to the extent necessary to determine eligibility 
  5.24  under section 136A.121, subdivision 2, clause (5); 
  5.25     (14) participant social security numbers and names 
  5.26  collected by the telephone assistance program may be disclosed 
  5.27  to the department of revenue to conduct an electronic data match 
  5.28  with the property tax refund database to determine eligibility 
  5.29  under section 237.70, subdivision 4a; 
  5.30     (15) the current address of a recipient of aid to families 
  5.31  with dependent children or Minnesota family investment 
  5.32  program-statewide may be disclosed to law enforcement officers 
  5.33  who provide the name of the recipient and notify the agency that:
  5.34     (i) the recipient: 
  5.35     (A) is a fugitive felon fleeing to avoid prosecution, or 
  5.36  custody or confinement after conviction, for a crime or attempt 
  6.1   to commit a crime that is a felony under the laws of the 
  6.2   jurisdiction from which the individual is fleeing; or 
  6.3      (B) is violating a condition of probation or parole imposed 
  6.4   under state or federal law; 
  6.5      (ii) the location or apprehension of the felon is within 
  6.6   the law enforcement officer's official duties; and 
  6.7      (iii)  the request is made in writing and in the proper 
  6.8   exercise of those duties; 
  6.9      (16) the current address of a recipient of general 
  6.10  assistance or general assistance medical care may be disclosed 
  6.11  to probation officers and corrections agents who are supervising 
  6.12  the recipient and to law enforcement officers who are 
  6.13  investigating the recipient in connection with a felony level 
  6.14  offense; 
  6.15     (17) information obtained from food stamp applicant or 
  6.16  recipient households may be disclosed to local, state, or 
  6.17  federal law enforcement officials, upon their written request, 
  6.18  for the purpose of investigating an alleged violation of the 
  6.19  Food Stamp Act, according to Code of Federal Regulations, title 
  6.20  7, section 272.1(c); 
  6.21     (18) the address, social security number, and, if 
  6.22  available, photograph of any member of a household receiving 
  6.23  food stamps shall be made available, on request, to a local, 
  6.24  state, or federal law enforcement officer if the officer 
  6.25  furnishes the agency with the name of the member and notifies 
  6.26  the agency that:  
  6.27     (i) the member: 
  6.28     (A) is fleeing to avoid prosecution, or custody or 
  6.29  confinement after conviction, for a crime or attempt to commit a 
  6.30  crime that is a felony in the jurisdiction the member is 
  6.31  fleeing; 
  6.32     (B) is violating a condition of probation or parole imposed 
  6.33  under state or federal law; or 
  6.34     (C) has information that is necessary for the officer to 
  6.35  conduct an official duty related to conduct described in subitem 
  6.36  (A) or (B); 
  7.1      (ii) locating or apprehending the member is within the 
  7.2   officer's official duties; and 
  7.3      (iii) the request is made in writing and in the proper 
  7.4   exercise of the officer's official duty; 
  7.5      (19) certain information regarding child support obligors 
  7.6   who are in arrears may be made public according to section 
  7.7   518.575; 
  7.8      (20) data on child support payments made by a child support 
  7.9   obligor and data on the distribution of those payments excluding 
  7.10  identifying information on obligees may be disclosed to all 
  7.11  obligees to whom the obligor owes support, and data on the 
  7.12  enforcement actions undertaken by the public authority, the 
  7.13  status of those actions, and data on the income of the obligor 
  7.14  or obligee may be disclosed to the other party; 
  7.15     (21) data in the work reporting system may be disclosed 
  7.16  under section 256.998, subdivision 7; 
  7.17     (22) to the department of children, families, and learning 
  7.18  for the purpose of matching department of children, families, 
  7.19  and learning student data with public assistance data to 
  7.20  determine students eligible for free and reduced price meals, 
  7.21  meal supplements, and free milk according to United States Code, 
  7.22  title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to 
  7.23  produce accurate numbers of students receiving aid to families 
  7.24  with dependent children or Minnesota family investment 
  7.25  program-statewide as required by section 126C.06; to allocate 
  7.26  federal and state funds that are distributed based on income of 
  7.27  the student's family; and to verify receipt of energy assistance 
  7.28  for the telephone assistance plan; 
  7.29     (23) the current address and telephone number of program 
  7.30  recipients and emergency contacts may be released to the 
  7.31  commissioner of health or a local board of health as defined in 
  7.32  section 145A.02, subdivision 2, when the commissioner or local 
  7.33  board of health has reason to believe that a program recipient 
  7.34  is a disease case, carrier, suspect case, or at risk of illness, 
  7.35  and the data are necessary to locate the person; 
  7.36     (24) to other state agencies, statewide systems, and 
  8.1   political subdivisions of this state, including the attorney 
  8.2   general, and agencies of other states, interstate information 
  8.3   networks, federal agencies, and other entities as required by 
  8.4   federal regulation or law for the administration of the child 
  8.5   support enforcement program; 
  8.6      (25) to personnel of public assistance programs as defined 
  8.7   in section 256.741, for access to the child support system 
  8.8   database for the purpose of administration, including monitoring 
  8.9   and evaluation of those public assistance programs; or 
  8.10     (26) to monitor and evaluate the statewide Minnesota family 
  8.11  investment program by exchanging data between the departments of 
  8.12  human services and children, families, and learning, on 
  8.13  recipients and former recipients of food stamps, cash assistance 
  8.14  under chapter 256, 256D, 256J, or 256K, child care assistance 
  8.15  under chapter 119B, or medical programs under chapter 256B, 
  8.16  256D, or 256L.  
  8.17     (b) Information on persons who have been treated for drug 
  8.18  or alcohol abuse may only be disclosed according to the 
  8.19  requirements of Code of Federal Regulations, title 42, sections 
  8.20  2.1 to 2.67. 
  8.21     (c) Data provided to law enforcement agencies under 
  8.22  paragraph (a), clause (15), (16), (17), or (18), or paragraph 
  8.23  (b), are investigative data and are confidential or protected 
  8.24  nonpublic while the investigation is active.  The data are 
  8.25  private after the investigation becomes inactive under section 
  8.26  13.82, subdivision 5, paragraph (a) or (b). 
  8.27     (d) Mental health data shall be treated as provided in 
  8.28  subdivisions 7, 8, and 9, but is not subject to the access 
  8.29  provisions of subdivision 10, paragraph (b). 
  8.30     <i>(Effective date:  Section 1 (13.46, subdivision 2) is</i> 
  8.31  <i>effective the day following final enactment.)</i> 
  8.32     Sec. 2.  Minnesota Statutes 1998, section 122A.61, 
  8.33  subdivision 1, is amended to read: 
  8.34     Subdivision 1.  [STAFF DEVELOPMENT REVENUE.] A district is 
  8.35  required to reserve an amount equal to at least one two percent 
  8.36  of the basic revenue under section 126C.10, subdivision 2, for 
  9.1   in-service education for programs under section 120B.22, 
  9.2   subdivision 2, for staff development plans, including plans for 
  9.3   challenging instructional activities and experiences under 
  9.4   section 122A.60, and for curriculum development and programs, 
  9.5   other in-service education, teachers' workshops, teacher 
  9.6   conferences, the cost of substitute teachers staff development 
  9.7   purposes, and other related costs for staff development 
  9.8   efforts.  Districts may expend an additional amount of basic 
  9.9   unreserved revenue for staff development based on their 
  9.10  needs.  With the exception of amounts reserved for staff 
  9.11  development from revenues allocated directly to school sites, 
  9.12  the board must initially allocate 50 percent of the reserved 
  9.13  revenue to each school site in the district on a per teacher 
  9.14  basis, which must be retained by the school site until used.  
  9.15  The board may retain 25 percent to be used for district wide 
  9.16  staff development efforts.  The remaining 25 percent of the 
  9.17  revenue must be used to make grants to school sites that 
  9.18  demonstrate exemplary use of allocated staff development revenue 
  9.19  for best practices methods.  A grant may be used for any purpose 
  9.20  authorized under section 120B.22, subdivision 2, 122A.60, or for 
  9.21  the costs of curriculum development and programs, other 
  9.22  in-service education, teachers' workshops, teacher conferences, 
  9.23  substitute teachers for staff development purposes, and other 
  9.24  staff development efforts, and determined by the 
  9.25  site decision-making professional development team.  The 
  9.26  site decision-making professional development team must 
  9.27  demonstrate to the school board the extent to which staff at the 
  9.28  site have met the outcomes of the program.  The board may 
  9.29  withhold a portion of initial allocation of revenue if the staff 
  9.30  development outcomes are not being met. 
  9.31     Sec. 3.  Minnesota Statutes 1998, section 123B.75, is 
  9.32  amended by adding a subdivision to read: 
  9.33     Subd. 6a.  [INTEGRATION AID.] Integration aid received 
  9.34  under section 127A.45, subdivision 12a, must be recognized in 
  9.35  the same fiscal year as the integration levy. 
  9.36     <i>(Effective date:  Section 3 (123B.75, subdivision 6a) is</i> 
 10.1   <i>effective the day following final enactment.)</i> 
 10.2      Sec. 4.  Minnesota Statutes 1998, section 123B.92, 
 10.3   subdivision 9, is amended to read: 
 10.4      Subd. 9.  [NONPUBLIC PUPIL TRANSPORTATION AID.] (a) A 
 10.5   district's nonpublic pupil transportation aid for the 1996-1997 
 10.6   and later school years for transportation services for nonpublic 
 10.7   school pupils according to sections 123B.88, 123B.84 to 123B.86, 
 10.8   and this section, equals the sum of the amounts computed in 
 10.9   paragraphs (b) and (c).  This aid does not limit the obligation 
 10.10  to transport pupils under sections 123B.84 to 123B.87. 
 10.11     (b) For regular and excess transportation according to 
 10.12  subdivision 1, paragraph (b), clauses (1) and (2), an amount 
 10.13  equal to the product of: 
 10.14     (1) the district's actual expenditure per pupil transported 
 10.15  in the regular and excess transportation categories during the 
 10.16  second preceding school year; times 
 10.17     (2) the number of nonpublic school pupils residing in the 
 10.18  district who receive regular or excess transportation service or 
 10.19  reimbursement for the current school year; times 
 10.20     (3) the ratio of the formula allowance pursuant to section 
 10.21  126C.10, subdivision 2, for the current school year to the 
 10.22  formula allowance pursuant to section 126C.10, subdivision 2, 
 10.23  for the second preceding school year. 
 10.24     (c) For nonpublic nonregular transportation according to 
 10.25  subdivision 1, paragraph (b), clause (5), an amount equal to the 
 10.26  product of: 
 10.27     (1) the district's actual expenditure for nonpublic 
 10.28  nonregular transportation during the second preceding school 
 10.29  year; times 
 10.30     (2) the ratio of the formula allowance pursuant to section 
 10.31  126C.10, subdivision 2, for the current school year to the 
 10.32  formula allowance pursuant to section 126C.10, subdivision 2, 
 10.33  for the second preceding school year. 
 10.34     (d) Notwithstanding the amount of the formula allowance for 
 10.35  fiscal years 1997 and 1998 2000, 2001, and 2002 in section 
 10.36  126C.10, subdivision 2, the commissioner shall use the amount of 
 11.1   the formula allowance for the current year less $300 plus $87 in 
 11.2   determining the nonpublic pupil transportation revenue in 
 11.3   paragraphs (b) and (c) for fiscal years 1997 and 1998 year 2000, 
 11.4   and the amount of the formula allowance less $110 in determining 
 11.5   the nonpublic pupil transportation revenue in paragraphs (b) and 
 11.6   (c) for fiscal years 2001 and 2002. 
 11.7      Sec. 5.  Minnesota Statutes 1998, section 124D.11, 
 11.8   subdivision 1, is amended to read: 
 11.9      Subdivision 1.  [GENERAL EDUCATION REVENUE.] General 
 11.10  education revenue must be paid to a charter school as though it 
 11.11  were a district.  The general education revenue for 
 11.12  each adjusted marginal cost pupil unit is the state average 
 11.13  general education revenue per pupil unit, plus the referendum 
 11.14  equalization aid allowance in the pupil's district of residence, 
 11.15  minus an amount equal to the product of the formula allowance 
 11.16  according to section 126C.10, subdivision 2, times .0485, 
 11.17  calculated without basic skills revenue, transportation sparsity 
 11.18  revenue, and the transportation portion of the transition 
 11.19  revenue adjustment, plus basic skills revenue as though the 
 11.20  school were a school district. 
 11.21     Sec. 6.  Minnesota Statutes 1998, section 124D.135, 
 11.22  subdivision 3, is amended to read: 
 11.23     Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 
 11.24  obtain early childhood family education revenue, a district may 
 11.25  levy an amount equal to the tax rate of .45 .54 percent times 
 11.26  the adjusted tax capacity of the district for the year preceding 
 11.27  the year the levy is certified.  If the amount of the early 
 11.28  childhood family education levy would exceed the early childhood 
 11.29  family education revenue, the early childhood family education 
 11.30  levy must equal the early childhood family education revenue.  
 11.31     Sec. 7.  Minnesota Statutes 1998, section 124D.20, 
 11.32  subdivision 5, is amended to read: 
 11.33     Subd. 5.  [COMMUNITY EDUCATION LEVY.] To obtain community 
 11.34  education revenue, a district may levy the amount raised by a 
 11.35  tax rate of .41 .49 percent times the adjusted net tax capacity 
 11.36  of the district.  If the amount of the community education levy 
 12.1   would exceed the community education revenue, the community 
 12.2   education levy shall be determined according to subdivision 6. 
 12.3      Sec. 8.  Minnesota Statutes 1998, section 124D.22, 
 12.4   subdivision 3, is amended to read: 
 12.5      Subd. 3.  [EXTENDED DAY LEVY.] To obtain extended day 
 12.6   revenue, a school district may levy an amount equal to the 
 12.7   district's extended day revenue as defined in subdivision 2 
 12.8   multiplied by the lesser of one, or the ratio of the quotient 
 12.9   derived by dividing the adjusted net tax capacity of the 
 12.10  district for the year before the year the levy is certified by 
 12.11  the resident adjusted marginal cost pupil units in the district 
 12.12  for the school year to which the levy is attributable, 
 12.13  to $3,767 $3,166.  
 12.14     Sec. 9.  Minnesota Statutes 1998, section 124D.65, 
 12.15  subdivision 1, is amended to read: 
 12.16     Subdivision 1.  [ADJUSTED LEP BASE REVENUE.] (a) A 
 12.17  district's adjusted limited English proficiency programs base 
 12.18  revenue for fiscal year 1996 and later 2000 equals the product 
 12.19  of: 
 12.20     (1) the district's base revenue for limited English 
 12.21  proficiency programs under this section and section 125A.77, 
 12.22  times 
 12.23     (2) the ratio of: 
 12.24     (i) the greater of 20 or the number of pupils of limited 
 12.25  English proficiency enrolled in the district during the current 
 12.26  fiscal year to 
 12.27     (ii) the greater of 20 or the number of pupils of limited 
 12.28  English proficiency enrolled in the district during the base 
 12.29  year. 
 12.30     (b) For the purposes of this section, the base year for 
 12.31  fiscal year 1996 is fiscal year 1995.  The base year for later 
 12.32  fiscal years is the second fiscal year preceding the fiscal year 
 12.33  for which aid shall be paid.  The current year is the fiscal 
 12.34  year for which aid shall be paid. 
 12.35     (c) For the purposes of this section, a teacher includes 
 12.36  nonlicensed personnel who provide direct instruction to students 
 13.1   of limited English proficiency under the supervision of a 
 13.2   licensed teacher. 
 13.3      Sec. 10.  Minnesota Statutes 1998, section 124D.65, 
 13.4   subdivision 5, is amended to read: 
 13.5      Subd. 5.  [SCHOOL DISTRICT LEP REVENUE.] (a) A school 
 13.6   district's limited English proficiency programs revenue for 
 13.7   fiscal year 1996 and later 2000 equals the state total limited 
 13.8   English proficiency programs revenue, minus the amount 
 13.9   determined under paragraph (b), times the ratio of the 
 13.10  district's adjusted limited English proficiency programs base 
 13.11  revenue to the state total adjusted limited English proficiency 
 13.12  programs base revenue. 
 13.13     (b) Notwithstanding paragraph (a), if the limited English 
 13.14  proficiency programs base revenue for a district equals zero, 
 13.15  the limited English proficiency programs revenue equals the sum 
 13.16  of the following amounts, computed using current year data: 
 13.17     (1) 68 percent of the salary of one full-time equivalent 
 13.18  teacher for each 40 pupils of limited English proficiency 
 13.19  enrolled, or 68 percent of the salary of one-half of a full-time 
 13.20  teacher in a district with 20 or fewer pupils of limited English 
 13.21  proficiency enrolled; and 
 13.22     (2) for supplies and equipment purchased or rented for use 
 13.23  in the instruction of pupils of limited English proficiency an 
 13.24  amount equal to 47 percent of the sum actually spent by the 
 13.25  district but not to exceed an average of $47 in any one school 
 13.26  year for each pupil of limited English proficiency receiving 
 13.27  instruction. 
 13.28     (c) A district's limited English proficiency programs 
 13.29  revenue for fiscal year 2001 and later equals the product of 
 13.30  $584 times the greater of 20 or the number of adjusted marginal 
 13.31  cost pupils of limited English proficiency enrolled in the 
 13.32  district during the current fiscal year. 
 13.33     Sec. 11.  Minnesota Statutes 1998, section 124D.68, 
 13.34  subdivision 9, is amended to read: 
 13.35     Subd. 9.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
 13.36  attending an eligible program full time under subdivision 3, 
 14.1   paragraph (d), the department must pay 90 percent of the 
 14.2   district's average general education revenue less compensatory 
 14.3   basic skills revenue to the eligible program and ten percent of 
 14.4   the district's average general education revenue 
 14.5   less compensatory basic skills revenue to the resident district 
 14.6   within 30 days after the eligible program verifies enrollment 
 14.7   using the form provided by the department.  For a pupil 
 14.8   attending an eligible program part time, revenue shall be 
 14.9   reduced proportionately, according to the amount of time the 
 14.10  pupil attends the program, and the payments to the eligible 
 14.11  program and the resident district shall be reduced accordingly.  
 14.12  A pupil for whom payment is made according to this section may 
 14.13  not be counted by any district for any purpose other than 
 14.14  computation of general education revenue.  If payment is made 
 14.15  for a pupil under this subdivision, a district shall not 
 14.16  reimburse a program under section 124D.69 for the same 
 14.17  pupil.  Compensatory Basic skills revenue shall be paid 
 14.18  according to section 126C.10, subdivision 3 4. 
 14.19     (b) The department must pay up to 100 percent of the 
 14.20  revenue to the eligible program if there is an agreement to that 
 14.21  effect between the school district and the eligible program.  
 14.22     Sec. 12.  Minnesota Statutes 1998, section 124D.69, 
 14.23  subdivision 1, is amended to read: 
 14.24     Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
 14.25  program, eligible under section 124D.68, subdivision 3, 
 14.26  paragraph (d), or subdivision 4, operated by a private 
 14.27  organization that has contracted with a school district to 
 14.28  provide educational services for eligible pupils under section 
 14.29  124D.68, subdivision 2, the district contracting with the 
 14.30  private organization must reimburse the provider an amount equal 
 14.31  to at least 90 percent of the district's average general 
 14.32  education less compensatory basic skills revenue per pupil unit 
 14.33  times the number of pupil units for pupils attending the 
 14.34  program.  Basic skills revenue shall be paid according to 
 14.35  section 126C.10, subdivision 4.  Compensatory revenue must be 
 14.36  allocated according to section 126C.15, subdivision 2.  For a 
 15.1   pupil attending the program part time, the revenue paid to the 
 15.2   program must be reduced proportionately, according to the amount 
 15.3   of time the pupil attends the program, and revenue paid to the 
 15.4   district shall be reduced accordingly.  Pupils for whom a 
 15.5   district provides reimbursement may not be counted by the 
 15.6   district for any purpose other than computation of general 
 15.7   education revenue.  If payment is made to a district or program 
 15.8   for a pupil under this section, the department must not make a 
 15.9   payment for the same pupil under section 124D.68, subdivision 9. 
 15.10     Sec. 13.  Minnesota Statutes 1998, section 124D.86, 
 15.11  subdivision 3, is amended to read: 
 15.12     Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 1999 2000 
 15.13  and later fiscal years, integration revenue equals the following 
 15.14  amounts: 
 15.15     (1) for independent school district No. 709, 
 15.16  Duluth, $193 $201 times the resident adjusted pupil units for 
 15.17  the school year; 
 15.18     (2) for independent school district No. 625, St. 
 15.19  Paul, $427 $437 times the resident adjusted pupil units for the 
 15.20  school year; 
 15.21     (3) for special school district No. 1, 
 15.22  Minneapolis, $523 $533 times the resident adjusted pupil units 
 15.23  for the school year; and 
 15.24     (4) for a district not listed in clause (1), (2), or (3) 
 15.25  that is required to implement a plan according to the 
 15.26  requirements of Minnesota Rules, parts 3535.0200 to 3535.2200, 
 15.27  the lesser of the actual cost of implementing the plan during 
 15.28  the fiscal year or $93 times the resident adjusted pupil units 
 15.29  for the school year; and 
 15.30     (5) for any district not otherwise qualified to receive 
 15.31  revenue under this subdivision, $93 per adjusted pupil unit 
 15.32  attending an interdistrict magnet school.  Revenue under this 
 15.33  clause must follow the pupil to the serving program. 
 15.34     Sec. 14.  Minnesota Statutes 1998, section 126C.05, 
 15.35  subdivision 1, is amended to read: 
 15.36     Subdivision 1.  [PUPIL UNIT.] Pupil units for each 
 16.1   Minnesota resident pupil in average daily membership enrolled in 
 16.2   the district of residence, in another district under sections 
 16.3   123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 
 16.4   124D.68; in a charter school under section 124D.10; or for whom 
 16.5   the resident district pays tuition under section 123A.18, 
 16.6   123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
 16.7   subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
 16.8   125A.65, shall be counted according to this subdivision.  
 16.9      (a) A prekindergarten pupil with a disability who is 
 16.10  enrolled in a program approved by the commissioner and has an 
 16.11  individual education plan is counted as the ratio of the number 
 16.12  of hours of assessment and education service to 825 with a 
 16.13  minimum of 0.28, but not more than one. 
 16.14     (b) A prekindergarten pupil who is assessed but determined 
 16.15  not to be handicapped is counted as the ratio of the number of 
 16.16  hours of assessment service to 825.  
 16.17     (c) A kindergarten pupil with a disability who is enrolled 
 16.18  in a program approved by the commissioner is counted as the 
 16.19  ratio of the number of hours of assessment and education 
 16.20  services required in the fiscal year by the pupil's individual 
 16.21  education program plan to 875, but not more than one. 
 16.22     (d) A kindergarten pupil who is not included in paragraph 
 16.23  (c) is counted as .53 .552 of a pupil unit for fiscal year 1995 
 16.24  2000 and thereafter. 
 16.25     (e) A pupil who is in any of grades 1 to 3 is counted as 
 16.26  1.102 pupil units for fiscal year 2000 and thereafter. 
 16.27     (f) A pupil who is any of grades 4 to 6 is counted as 1.06 
 16.28  pupil units for fiscal year 1995 and thereafter. 
 16.29     (f) (g) A pupil who is in any of grades 7 to 12 is counted 
 16.30  as 1.3 pupil units.  
 16.31     (g) (h) A pupil who is in the post-secondary enrollment 
 16.32  options program is counted as 1.3 pupil units.  
 16.33     Sec. 15.  Minnesota Statutes 1998, section 126C.05, 
 16.34  subdivision 3, is amended to read: 
 16.35     Subd. 3.  [COMPENSATION REVENUE PUPIL UNITS.] Compensation 
 16.36  revenue pupil units for fiscal year 1998 and thereafter must be 
 17.1   computed according to this subdivision.  
 17.2      (a) The compensation revenue concentration percentage for 
 17.3   each building in a district equals the product of 100 times the 
 17.4   ratio of:  
 17.5      (1) the sum of the number of pupils enrolled in the 
 17.6   building eligible to receive free lunch plus one-half of the 
 17.7   pupils eligible to receive reduced priced lunch on October 1 of 
 17.8   the previous fiscal year; to 
 17.9      (2) the number of pupils enrolled in the building on 
 17.10  October 1 of the previous fiscal year. 
 17.11     (b) The compensation revenue pupil weighting factor for a 
 17.12  building equals the lesser of one or the quotient obtained by 
 17.13  dividing the building's compensation revenue concentration 
 17.14  percentage by 80.0.  
 17.15     (c) The compensation revenue pupil units for a building 
 17.16  equals the product of:  
 17.17     (1) the sum of the number of pupils enrolled in the 
 17.18  building eligible to receive free lunch and one-half of the 
 17.19  pupils eligible to receive reduced priced lunch on October 1 of 
 17.20  the previous fiscal year; times 
 17.21     (2) the compensation revenue pupil weighting factor for the 
 17.22  building; times 
 17.23     (3) .60. 
 17.24     (d) Notwithstanding paragraphs (a) to (c), for charter 
 17.25  schools and contracted alternative programs in the first year of 
 17.26  operation, compensation revenue pupil units shall be computed 
 17.27  using data for the current fiscal year.  If the charter school 
 17.28  or contracted alternative program begins operation after October 
 17.29  1, compensatory revenue pupil units shall be computed based on 
 17.30  pupils enrolled on an alternate date determined by the 
 17.31  commissioner, and the compensation revenue pupil units shall be 
 17.32  prorated based on the ratio of the number of days of student 
 17.33  instruction to 170 days. 
 17.34     (e) The percentages in this subdivision must be based on 
 17.35  the count of individual pupils and not on a building average or 
 17.36  minimum. 
 18.1      Sec. 16.  Minnesota Statutes 1998, section 126C.05, 
 18.2   subdivision 5, is amended to read: 
 18.3      Subd. 5.  [ADJUSTED PUPIL UNITS.] (a) Adjusted pupil units 
 18.4   for a district or charter school means the sum of: 
 18.5      (1) the number of resident pupil units served, according to 
 18.6   subdivision 1g 7, plus 
 18.7      (2) shared time pupil units, according to section 126C.01, 
 18.8   subdivision 6, plus 
 18.9      (3) pupil units according to subdivision 1 for pupils 
 18.10  attending the district for which general education aid 
 18.11  adjustments are made according to section 127A.47, subdivision 
 18.12  7; minus 
 18.13     (4) pupil units according to subdivision 1 for resident 
 18.14  pupils attending other districts for which general education aid 
 18.15  adjustments are made according to section 127A.47, subdivision 7.
 18.16  whom the district or charter school pays tuition under section 
 18.17  123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
 18.18  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
 18.19  125A.65, minus 
 18.20     (3) pupil units according to subdivision 1 for whom the 
 18.21  district or charter school receives tuition under section 
 18.22  123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
 18.23  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
 18.24  125A.65. 
 18.25     (b) Adjusted marginal cost pupil units means the sum of .9 
 18.26  times the pupil units defined in paragraph (a) for the current 
 18.27  school year and .1 times the pupil units defined in paragraph 
 18.28  (a) for the previous school year. 
 18.29     Sec. 17.  Minnesota Statutes 1998, section 126C.05, 
 18.30  subdivision 6, is amended to read: 
 18.31     Subd. 6.  [RESIDENT PUPIL UNITS.] (a) Resident pupil units 
 18.32  for a district means the number of pupil units according to 
 18.33  subdivision 1 residing in the district. 
 18.34     (b) Resident marginal cost pupil units means the sum of .9 
 18.35  times the pupil units defined in paragraph (a) for the current 
 18.36  year and .1 times the pupil units defined in paragraph (a) for 
 19.1   the previous school year. 
 19.2      Sec. 18.  Minnesota Statutes 1998, section 126C.05, 
 19.3   subdivision 7, is amended to read: 
 19.4      Subd. 7.  [PUPIL UNITS SERVED.] Pupil units served for a 
 19.5   district or charter school means the number of pupil units 
 19.6   according to subdivision 1 enrolled in the district or charter 
 19.7   school. 
 19.8      Sec. 19.  Minnesota Statutes 1998, section 126C.10, 
 19.9   subdivision 1, is amended to read: 
 19.10     Subdivision 1.  [GENERAL EDUCATION REVENUE.] For fiscal 
 19.11  year 1999 2000 and thereafter, the general education revenue for 
 19.12  each district equals the sum of the district's basic revenue, 
 19.13  basic skills revenue, training and experience revenue, secondary 
 19.14  sparsity revenue, elementary sparsity revenue, transportation 
 19.15  sparsity revenue, total operating capital revenue, graduation 
 19.16  standards implementation revenue, equity revenue, transition 
 19.17  revenue, and supplemental revenue. 
 19.18     Sec. 20.  Minnesota Statutes 1998, section 126C.10, 
 19.19  subdivision 2, is amended to read: 
 19.20     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 19.21  district equals the formula allowance times the sum of the 
 19.22  resident adjusted marginal cost pupil units plus .25 times the 
 19.23  pupil units for prekindergarten pupils with a disability under 
 19.24  section 126C.05, subdivision 1, paragraphs (a) and (b), for the 
 19.25  school year.  The formula allowance for fiscal year 1997 is 
 19.26  $3,505.  The formula allowance for fiscal year 1998 is $3,581 
 19.27  and the formula allowance for fiscal year 1999 and fiscal year 
 19.28  2000 is $3,530.  The formula allowance for fiscal year 2000 is 
 19.29  $3,731.  The formula allowance for fiscal year 2001 and 
 19.30  subsequent fiscal years is $3,597 $3,921. 
 19.31     Sec. 21.  Minnesota Statutes 1998, section 126C.10, 
 19.32  subdivision 4, is amended to read: 
 19.33     Subd. 4.  [BASIC SKILLS REVENUE.] For fiscal year 1999 and 
 19.34  thereafter, a school district's basic skills revenue equals the 
 19.35  sum of: 
 19.36     (1) compensatory revenue under subdivision 3; plus 
 20.1      (2) limited English proficiency revenue according to 
 20.2   section 124D.65, subdivision 5; plus 
 20.3      (3) $190 times the limited English proficiency pupil units 
 20.4   according to section 126C.05, subdivision 17; plus 
 20.5      (4) the lesser of:  (i) $22.50 times the number of adjusted 
 20.6   marginal cost pupil units in kindergarten to grade 8; or (ii) 
 20.7   the amount of district money provided to match basic skills 
 20.8   revenue for the purposes described in section 126C.15. 
 20.9      Sec. 22.  Minnesota Statutes 1998, section 126C.10, 
 20.10  subdivision 5, is amended to read: 
 20.11     Subd. 5.  [TRAINING AND EXPERIENCE REVENUE.] The training 
 20.12  and experience revenue for each district equals the greater of 
 20.13  zero or the result of the following computation:  
 20.14     (1) subtract .8 from the training and experience index; 
 20.15     (2) multiply the result in clause (1) by the product of 
 20.16  $660 times the resident adjusted marginal cost pupil units for 
 20.17  the school year.  
 20.18     Sec. 23.  Minnesota Statutes 1998, section 126C.10, 
 20.19  subdivision 6, is amended to read: 
 20.20     Subd. 6.  [DEFINITIONS.] The definitions in this 
 20.21  subdivision apply only to subdivisions 7 and 8.  
 20.22     (a) "High school" means a secondary school that has pupils 
 20.23  enrolled in at least the 10th, 11th, and 12th grades.  If there 
 20.24  is no secondary school in the district that has pupils enrolled 
 20.25  in at least the 10th, 11th, and 12th grades, and the school is 
 20.26  at least 19 miles from the next nearest school, the commissioner 
 20.27  must designate one school in the district as a high school for 
 20.28  the purposes of this section. 
 20.29     (b) "Secondary average daily membership" means, for a 
 20.30  district that has only one high school, the average daily 
 20.31  membership of resident pupils served in grades 7 through 12.  
 20.32  For a district that has more than one high school, "secondary 
 20.33  average daily membership" for each high school means the product 
 20.34  of the average daily membership of resident pupils served in 
 20.35  grades 7 through 12 in the high school, times the ratio of six 
 20.36  to the number of grades in the high school. 
 21.1      (c) "Attendance area" means the total surface area of the 
 21.2   district, in square miles, divided by the number of high schools 
 21.3   in the district.  For a district that does not operate a high 
 21.4   school and is less than 19 miles from the nearest operating high 
 21.5   school, the attendance area equals zero. 
 21.6      (d) "Isolation index" for a high school means the square 
 21.7   root of 55 percent of the attendance area plus the distance in 
 21.8   miles, according to the usually traveled routes, between the 
 21.9   high school and the nearest high school.  For a district in 
 21.10  which there is located land defined in section 84A.01, 84A.20, 
 21.11  or 84A.31, the distance in miles is the sum of: 
 21.12     (1) the square root of one-half of the attendance area; and 
 21.13     (2) the distance from the border of the district to the 
 21.14  nearest high school. 
 21.15     (e) "Qualifying high school" means a high school that has 
 21.16  an isolation index greater than 23 and that has secondary 
 21.17  average daily membership of less than 400.  
 21.18     (f) "Qualifying elementary school" means an elementary 
 21.19  school that is located 19 miles or more from the nearest 
 21.20  elementary school or from the nearest elementary school within 
 21.21  the district and, in either case, has an elementary average 
 21.22  daily membership of an average of 20 or fewer per grade. 
 21.23     (g) "Elementary average daily membership" means, for a 
 21.24  district that has only one elementary school, the average daily 
 21.25  membership of resident pupils served in kindergarten through 
 21.26  grade 6.  For a district that has more than one elementary 
 21.27  school, "average daily membership" for each school means the 
 21.28  average daily membership of pupils served in kindergarten 
 21.29  through grade 6 multiplied by the ratio of seven to the number 
 21.30  of grades in the elementary school.  For a building in a 
 21.31  district where the nearest elementary school is at least 65 
 21.32  miles distant, pupils served must be used to determine average 
 21.33  daily membership. 
 21.34     Sec. 24.  Minnesota Statutes 1998, section 126C.10, 
 21.35  subdivision 7, is amended to read: 
 21.36     Subd. 7.  [SECONDARY SPARSITY REVENUE.] (a) A district's 
 22.1   secondary sparsity revenue for a school year equals the sum of 
 22.2   the results of the following calculation for each qualifying 
 22.3   high school in the district: 
 22.4      (1) the formula allowance for the school year, multiplied 
 22.5   by 
 22.6      (2) the secondary average daily membership of pupils served 
 22.7   in the high school, multiplied by 
 22.8      (3) the quotient obtained by dividing 400 minus the 
 22.9   secondary average daily membership by 400 plus the secondary 
 22.10  daily membership, multiplied by 
 22.11     (4) the lesser of 1.5 or the quotient obtained by dividing 
 22.12  the isolation index minus 23 by ten. 
 22.13     (b) A newly formed district that is the result of districts 
 22.14  combining under the cooperation and combination program or 
 22.15  consolidating under section 123A.48 must receive secondary 
 22.16  sparsity revenue equal to the greater of:  (1) the amount 
 22.17  calculated under paragraph (a) for the combined district; or (2) 
 22.18  the sum of the amounts of secondary sparsity revenue the former 
 22.19  districts had in the year prior to consolidation, increased for 
 22.20  any subsequent changes in the secondary sparsity formula. 
 22.21     Sec. 25.  Minnesota Statutes 1998, section 126C.10, 
 22.22  subdivision 8, is amended to read: 
 22.23     Subd. 8.  [ELEMENTARY SPARSITY REVENUE.] A district's 
 22.24  elementary sparsity revenue equals the sum of the following 
 22.25  amounts for each qualifying elementary school in the district:  
 22.26     (1) the formula allowance for the year, multiplied by 
 22.27     (2) the elementary average daily membership of pupils 
 22.28  served in the school, multiplied by 
 22.29     (3) the quotient obtained by dividing 140 minus the 
 22.30  elementary average daily membership by 140 plus the average 
 22.31  daily membership. 
 22.32     Sec. 26.  Minnesota Statutes 1998, section 126C.10, 
 22.33  subdivision 9, is amended to read: 
 22.34     Subd. 9.  [SUPPLEMENTAL REVENUE.] (a) A district's 
 22.35  supplemental revenue allowance for fiscal year 1994 and later 
 22.36  fiscal years equals the district's supplemental revenue for 
 23.1   fiscal year 1993 divided by the district's 1992-1993 resident 
 23.2   pupil units. 
 23.3      (b) A district's supplemental revenue allowance is reduced 
 23.4   for fiscal year 1995 and later according to subdivision 12. 
 23.5      (c) A district's supplemental revenue equals the 
 23.6   supplemental revenue allowance, if any, times its resident 
 23.7   adjusted marginal cost pupil units for that year.  
 23.8      (d) A district may cancel its supplemental revenue by 
 23.9   notifying the commissioner of education prior to June 30, 1994.  
 23.10  A district that is reorganizing under section 122A.35, 123A.46, 
 23.11  or 123A.48 may cancel its supplemental revenue by notifying the 
 23.12  commissioner of children, families, and learning before July 1 
 23.13  of the year of the reorganization.  If a district cancels its 
 23.14  supplemental revenue according to this paragraph, its 
 23.15  supplemental revenue allowance for fiscal year 1993 for purposes 
 23.16  of subdivision 12 and section 124A.03, subdivision 3b, equals 
 23.17  zero. 
 23.18     Sec. 27.  Minnesota Statutes 1998, section 126C.10, 
 23.19  subdivision 10, is amended to read: 
 23.20     Subd. 10.  [SUPPLEMENTAL LEVY.] To obtain supplemental 
 23.21  revenue, a district may levy an amount not more than the product 
 23.22  of its supplemental revenue for the school year times the lesser 
 23.23  of one or the ratio of its adjusted net tax capacity per 
 23.24  resident adjusted marginal cost pupil unit to $10,000 $8,404. 
 23.25     Sec. 28.  Minnesota Statutes 1998, section 126C.10, is 
 23.26  amended by adding a subdivision to read: 
 23.27     Subd. 12a.  [SUPPLEMENTAL REVENUE REDUCTION.] If a 
 23.28  district's ratio of 1992 adjusted net tax capacity divided by 
 23.29  1994-1995 actual pupil units to $9,025 is less than or equal to 
 23.30  .25, then the difference under subdivision 12, clause (2), is 
 23.31  equal to $0 for purposes of computing the district's 
 23.32  supplemental revenue under subdivision 9. 
 23.33     Sec. 29.  Minnesota Statutes 1998, section 126C.10, 
 23.34  subdivision 13, is amended to read: 
 23.35     Subd. 13.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
 23.36  fiscal year 1999 2000 and thereafter, total operating capital 
 24.1   revenue for a district equals the amount determined under 
 24.2   paragraph (b) or (c), plus $68 times the resident adjusted 
 24.3   marginal cost pupil units for the school year.  The revenue must 
 24.4   be placed in a reserved account in the general fund and may only 
 24.5   be used according to subdivision 14. 
 24.6      (b) For fiscal years 1999 2000 and later, capital revenue 
 24.7   for a district equals $100 times the district's maintenance cost 
 24.8   index times its resident adjusted marginal cost pupil units for 
 24.9   the school year. 
 24.10     (c) For 1996 and later fiscal years, the previous formula 
 24.11  revenue for a district equals $128 times its resident pupil 
 24.12  units for the school year. 
 24.13     (d) For fiscal years 1998 2000 and later, the revenue for a 
 24.14  district that operates a program under section 124D.128, is 
 24.15  increased by an amount equal to $30 times the number of resident 
 24.16  marginal cost pupil units served at the site where the program 
 24.17  is implemented. 
 24.18     Sec. 30.  Minnesota Statutes 1998, section 126C.10, 
 24.19  subdivision 14, is amended to read: 
 24.20     Subd. 14.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
 24.21  operating capital revenue may be used only for the following 
 24.22  purposes: 
 24.23     (1) to acquire land for school purposes; 
 24.24     (2) to acquire or construct buildings for school purposes; 
 24.25     (3) to rent or lease buildings, including the costs of 
 24.26  building repair or improvement that are part of a lease 
 24.27  agreement; 
 24.28     (4) to improve and repair school sites and buildings, and 
 24.29  equip or reequip school buildings with permanent attached 
 24.30  fixtures; 
 24.31     (5) for a surplus school building that is used 
 24.32  substantially for a public nonschool purpose; 
 24.33     (6) to eliminate barriers or increase access to school 
 24.34  buildings by individuals with a disability; 
 24.35     (7) to bring school buildings into compliance with the 
 24.36  Uniform Fire Code adopted according to chapter 299F; 
 25.1      (8) to remove asbestos from school buildings, encapsulate 
 25.2   asbestos, or make asbestos-related repairs; 
 25.3      (9) to clean up and dispose of polychlorinated biphenyls 
 25.4   found in school buildings; 
 25.5      (10) to clean up, remove, dispose of, and make repairs 
 25.6   related to storing heating fuel or transportation fuels such as 
 25.7   alcohol, gasoline, fuel oil, and special fuel, as defined in 
 25.8   section 296A.01; 
 25.9      (11) for energy audits for school buildings and to modify 
 25.10  buildings if the audit indicates the cost of the modification 
 25.11  can be recovered within ten years; 
 25.12     (12) to improve buildings that are leased according to 
 25.13  section 123B.51, subdivision 4; 
 25.14     (13) to pay special assessments levied against school 
 25.15  property but not to pay assessments for service charges; 
 25.16     (14) to pay principal and interest on state loans for 
 25.17  energy conservation according to section 216C.37 or loans made 
 25.18  under the Northeast Minnesota Economic Protection Trust Fund Act 
 25.19  according to sections 298.292 to 298.298; 
 25.20     (15) to purchase or lease interactive telecommunications 
 25.21  equipment; 
 25.22     (16) by board resolution, to transfer money into the debt 
 25.23  redemption fund to:  (i) pay the amounts needed to meet, when 
 25.24  due, principal and interest payments on certain obligations 
 25.25  issued according to chapter 475; or (ii) pay principal and 
 25.26  interest on debt service loans or capital loans according to 
 25.27  section 126C.70; 
 25.28     (17) to pay capital expenditure equipment-related operating 
 25.29  capital-related assessments of any entity formed under a 
 25.30  cooperative agreement between two or more districts; 
 25.31     (18) to purchase or lease computers and related materials, 
 25.32  copying machines, telecommunications equipment, and other 
 25.33  noninstructional equipment; 
 25.34     (19) to purchase or lease assistive technology or equipment 
 25.35  for instructional programs; 
 25.36     (20) to purchase textbooks; 
 26.1      (21) to purchase new and replacement library books or 
 26.2   technology; 
 26.3      (22) to purchase vehicles; 
 26.4      (23) to purchase or lease telecommunications equipment, 
 26.5   computers, and related equipment for integrated information 
 26.6   management systems for: 
 26.7      (i) managing and reporting learner outcome information for 
 26.8   all students under a results-oriented graduation rule; 
 26.9      (ii) managing student assessment, services, and achievement 
 26.10  information required for students with individual education 
 26.11  plans; and 
 26.12     (iii) other classroom information management needs; and 
 26.13     (24) to pay personnel costs directly related to the 
 26.14  acquisition, operation, and maintenance of telecommunications 
 26.15  systems, computers, related equipment, and network and 
 26.16  applications software. 
 26.17     Sec. 31.  Minnesota Statutes 1998, section 126C.10, 
 26.18  subdivision 18, is amended to read: 
 26.19     Subd. 18.  [TRANSPORTATION SPARSITY REVENUE ALLOWANCE.] (a) 
 26.20  A district's transportation sparsity allowance equals the 
 26.21  greater of zero or the result of the following computation: 
 26.22     (i) Multiply the formula allowance according to subdivision 
 26.23  2, by .1469. 
 26.24     (ii) Multiply the result in clause (i) by the district's 
 26.25  sparsity index raised to the 26/100 power. 
 26.26     (iii) Multiply the result in clause (ii) by the district's 
 26.27  density index raised to the 13/100 power. 
 26.28     (iv) Multiply the formula allowance according to 
 26.29  subdivision 2, by .0485. 
 26.30     (v) Subtract the result in clause (iv) from the result in 
 26.31  clause (iii). 
 26.32     (b) Transportation sparsity revenue is equal to the 
 26.33  transportation sparsity allowance times the resident adjusted 
 26.34  marginal cost pupil units. 
 26.35     Sec. 32.  Minnesota Statutes 1998, section 126C.10, 
 26.36  subdivision 19, is amended to read: 
 27.1      Subd. 19.  [TRANSITION ALLOWANCE.] (a) A district's 
 27.2   transportation transition allowance for fiscal year 1998 2000 
 27.3   and later equals the result of the following: 
 27.4      (1) if the result in subdivision 18, paragraph (a), clause 
 27.5   (iii), for fiscal year 1998 is less than the fiscal year 1996 
 27.6   base allowance, the transportation transition allowance equals 
 27.7   the fiscal year 1996 base allowance minus the result in 
 27.8   subdivision 18, paragraph (a), clause (iii); or 
 27.9      (2) if the result in subdivision 18, paragraph (a), clause 
 27.10  (iii), for fiscal year 1998 and later is greater than or equal 
 27.11  to the fiscal year 1996 base allowance, the transportation 
 27.12  transition allowance equals zero. 
 27.13     (b) A district's compensatory transition allowance equals 
 27.14  the greater of zero or the difference between:  
 27.15     (1) the amount of compensatory revenue the district would 
 27.16  have received under Minnesota Statutes 1996, section 124A.22, 
 27.17  subdivision 3, for fiscal year 1998 computed using a basic 
 27.18  formula allowance of $3,281; and 
 27.19     (2) the amount the district receives under subdivision 3; 
 27.20  divided by 
 27.21     (3) the district's actual adjusted marginal cost pupil 
 27.22  units for fiscal year 1998. 
 27.23     (c) A district's cooperation transition allowance for 
 27.24  fiscal year 2001 and later equals the greater of zero or the 
 27.25  difference between:  
 27.26     (1) $25,000; and 
 27.27     (2) $67 times the district's resident adjusted marginal 
 27.28  cost pupil units for fiscal year 2001 divided by; 
 27.29     (3) the district's adjusted marginal cost pupil units for 
 27.30  fiscal year 2001. 
 27.31     (d) A district's transition allowance for fiscal year 1999 
 27.32  2000 is equal to the sum of its transportation transition 
 27.33  allowance and its compensatory transition allowance.  A 
 27.34  district's transition allowance for fiscal year 2000 2001 and 
 27.35  thereafter is equal to the sum of its transportation transition 
 27.36  allowance, its compensatory transition allowance, and its 
 28.1   cooperation transition allowance.  
 28.2      Sec. 33.  Minnesota Statutes 1998, section 126C.10, 
 28.3   subdivision 20, is amended to read: 
 28.4      Subd. 20.  [TRANSITION REVENUE ADJUSTMENT.] A district's 
 28.5   transition revenue adjustment equals the district's transition 
 28.6   allowance times the resident adjusted marginal cost pupil units 
 28.7   for the school year. 
 28.8      Sec. 34.  Minnesota Statutes 1998, section 126C.10, 
 28.9   subdivision 21, is amended to read: 
 28.10     Subd. 21.  [TRANSITION LEVY ADJUSTMENT.] A district's 
 28.11  general education levy shall be adjusted by an amount equal to 
 28.12  the district's transition revenue times the lesser of 1 or the 
 28.13  ratio of its adjusted net tax capacity per resident adjusted 
 28.14  marginal cost pupil unit to $10,000 $8,404. 
 28.15     Sec. 35.  Minnesota Statutes 1998, section 126C.10, is 
 28.16  amended by adding a subdivision to read: 
 28.17     Subd. 23.  [EQUITY REVENUE.] (a) A school district 
 28.18  qualifies for equity revenue if the school district's adjusted 
 28.19  marginal cost pupil unit amount of basic revenue, supplemental 
 28.20  revenue, transition revenue, and referendum revenue is less than 
 28.21  the 95th percentile of school districts in its equity region for 
 28.22  those revenue categories and the school district's 
 28.23  administrative offices are not located in a city of the first 
 28.24  class on July 1, 1999. 
 28.25     (b) Equity revenue for a qualifying district that receives 
 28.26  referendum revenue under section 126C.17, subdivision 4, equals 
 28.27  the product of (1) the district's adjusted marginal cost pupil 
 28.28  units for that year; times (2) the sum of (i) $10, plus (ii) 
 28.29  $35, times the school district's equity index computed under 
 28.30  section 126C.10, subdivision 6. 
 28.31     (c) Equity revenue for a qualifying district that does not 
 28.32  receive referendum revenue under section 126C.17, subdivision 4, 
 28.33  equals the product of the district's adjusted marginal cost 
 28.34  pupil units for that year times $10. 
 28.35     Sec. 36.  Minnesota Statutes 1998, section 126C.10, is 
 28.36  amended by adding a subdivision to read: 
 29.1      Subd. 24.  [REGIONAL EQUITY GAP.] The regional equity gap 
 29.2   equals the difference between the fifth and the 95th percentile 
 29.3   of adjusted general revenue per marginal cost pupil unit. 
 29.4      Sec. 37.  Minnesota Statutes 1998, section 126C.10, is 
 29.5   amended by adding a subdivision to read: 
 29.6      Subd. 25.  [DISTRICT EQUITY GAP.] A district's equity gap 
 29.7   equals the greater of zero or the difference between the 
 29.8   district's adjusted general revenue and the regional 95th 
 29.9   percentile of adjusted general revenue per marginal cost pupil 
 29.10  unit. 
 29.11     Sec. 38.  Minnesota Statutes 1998, section 126C.10, is 
 29.12  amended by adding a subdivision to read: 
 29.13     Subd. 26.  [DISTRICT EQUITY INDEX.] A district's equity 
 29.14  index equals the ratio of the sum of the district equity gap 
 29.15  amount to the regional equity gap amount. 
 29.16     Sec. 39.  Minnesota Statutes 1998, section 126C.10, is 
 29.17  amended by adding a subdivision to read: 
 29.18     Subd. 27.  [EQUITY REGION.] For the purposes of computing 
 29.19  equity revenue under subdivision 23, a district whose 
 29.20  administrative offices on July 1, 1999, is located in Anoka, 
 29.21  Carver, Dakota, Hennepin, Ramsey, Scott, or Washington county is 
 29.22  part of the metro equity region.  Districts whose administrative 
 29.23  offices on July 1, 1999, are not located in Anoka, Carver, 
 29.24  Dakota, Hennepin, Ramsey, Scott, or Washington county are part 
 29.25  of the rural equity region. 
 29.26     Sec. 40.  Minnesota Statutes 1998, section 126C.12, 
 29.27  subdivision 1, is amended to read: 
 29.28     Subdivision 1.  [REVENUE.] Of a district's general 
 29.29  education revenue an amount equal to the sum of the number of 
 29.30  elementary fund balance pupils in average daily membership 
 29.31  defined in section 126C.05, subdivision 5, and one-half of the 
 29.32  number of kindergarten fund balance pupils in average daily 
 29.33  membership as defined in section 126C.05, subdivision 5, times 
 29.34  .06 for fiscal year 1995 and thereafter times the formula 
 29.35  allowance must be reserved according to this section. for fiscal 
 29.36  year 2000 and thereafter each school district shall reserve an 
 30.1   amount equal to the formula allowance multiplied by the 
 30.2   following calculation: 
 30.3      (1) the sum of adjusted marginal cost pupil units in 
 30.4   average daily membership, according to section 126C.05, 
 30.5   subdivision 5, in kindergarten times .052; plus 
 30.6      (2) the sum of adjusted marginal cost pupil units in 
 30.7   average daily membership, according to section 126C.05, 
 30.8   subdivision 5, in grades 1 to 3 times .102; plus 
 30.9      (3) the sum of adjusted marginal cost pupil units in 
 30.10  average daily membership, according to section 126C.05, 
 30.11  subdivision 5, in grades 4 to 6 times .06. 
 30.12     Sec. 41.  Minnesota Statutes 1998, section 126C.12, 
 30.13  subdivision 4, is amended to read: 
 30.14     Subd. 4.  [REVENUE USE.] (a) Revenue must be used according 
 30.15  to either paragraph (b) or (c). 
 30.16     (b) Revenue must be used to reduce and maintain the 
 30.17  district's instructor to learner ratios in kindergarten through 
 30.18  grade 6 to a level of 1 to 17 on average.  The district must 
 30.19  prioritize the use of the revenue to attain this level initially 
 30.20  in kindergarten and grade 1 and then through the subsequent 
 30.21  grades as revenue is available.  
 30.22     (c) The revenue may be used to prepare and use an 
 30.23  individualized learning plan for each learner.  A district must 
 30.24  not increase the district wide instructor-to-learner ratios in 
 30.25  other grades as a result of reducing instructor-to-learner 
 30.26  ratios in kindergarten through grade 6.  Revenue may not be used 
 30.27  to provide instructor preparation time or to provide the 
 30.28  district's share of revenue required under section 124D.67.  A 
 30.29  district may use a portion of the revenue reserved under this 
 30.30  section to employ up to the same number of full-time equivalent 
 30.31  education assistants or aides as the district employed during 
 30.32  the 1992-1993 school year under Minnesota Statutes 1992, section 
 30.33  124.331, subdivision 2. 
 30.34     Sec. 42.  Minnesota Statutes 1998, section 126C.13, 
 30.35  subdivision 1, is amended to read: 
 30.36     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 31.1   commissioner must establish the general education tax rate by 
 31.2   July 1 of each year for levies payable in the following year.  
 31.3   The general education tax capacity rate must be a rate, rounded 
 31.4   up to the nearest hundredth of a percent, that, when applied to 
 31.5   the adjusted net tax capacity for all districts, raises the 
 31.6   amount specified in this subdivision.  The general education tax 
 31.7   rate must be the rate that raises $1,385,500,000 for fiscal year 
 31.8   1999, $1,325,500,000 for fiscal year 2000, and $1,387,100,000 
 31.9   $1,331,186,000 for fiscal year 2001, and later fiscal years.  
 31.10  The general education tax rate may not be changed due to changes 
 31.11  or corrections made to a district's adjusted net tax capacity 
 31.12  after the tax rate has been established.  If the levy target for 
 31.13  fiscal year 1999 or fiscal year 2000 is changed by another law 
 31.14  enacted during the 1997 or 1998 session, the commissioner shall 
 31.15  reduce the general education levy target in this section by the 
 31.16  amount of the reduction in the enacted law. 
 31.17     <i>(Effective Date:  Section 42 (126C.13, subdivision 1) is</i> 
 31.18  <i>effective for taxes payable in 2000 and later.)</i> 
 31.19     Sec. 43.  Minnesota Statutes 1998, section 126C.13, 
 31.20  subdivision 2, is amended to read: 
 31.21     Subd. 2.  [GENERAL EDUCATION LEVY.] To obtain general 
 31.22  education revenue, excluding transition revenue and supplemental 
 31.23  revenue, a district may levy an amount not to exceed the general 
 31.24  education tax rate times the adjusted net tax capacity of the 
 31.25  district for the preceding year.  If the amount of the general 
 31.26  education levy would exceed the general education revenue, 
 31.27  excluding transition revenue and supplemental revenue, the 
 31.28  general education levy must be determined according to 
 31.29  subdivision 3.  
 31.30     Sec. 44.  Minnesota Statutes 1998, section 126C.15, 
 31.31  subdivision 1, is amended to read: 
 31.32     Subdivision 1.  [USE OF THE REVENUE.] The compensatory 
 31.33  education basic skills revenue under section 126C.10, 
 31.34  subdivision 3 4, and the portion of the transition revenue 
 31.35  adjustment under section 126C.10, subdivision 20, attributable 
 31.36  to the compensatory transition allowance under section 126C.10, 
 32.1   subdivision 19, paragraph (b), must be reserved and used to meet 
 32.2   the educational needs of pupils who enroll under-prepared to 
 32.3   learn and whose progress toward meeting state or local content 
 32.4   or performance standards is below the level that is appropriate 
 32.5   for learners of their age.  Any of the following may be provided 
 32.6   to meet these learners' needs: 
 32.7      (1) direct instructional services under the assurance of 
 32.8   mastery program according to section 124D.66; 
 32.9      (2) remedial instruction in reading, language arts, 
 32.10  mathematics, other content areas, or study skills to improve the 
 32.11  achievement level of these learners; 
 32.12     (3) additional teachers and teacher aides to provide more 
 32.13  individualized instruction to these learners through individual 
 32.14  tutoring, lower instructor-to-learner ratios, or team teaching; 
 32.15     (4) a longer school day or week during the regular school 
 32.16  year or through a summer program that may be offered directly by 
 32.17  the site or under a performance-based contract with a 
 32.18  community-based organization; 
 32.19     (5) comprehensive and ongoing staff development consistent 
 32.20  with district and site plans according to section 122A.60, for 
 32.21  teachers, teacher aides, principals, and other personnel to 
 32.22  improve their ability to identify the needs of these learners 
 32.23  and provide appropriate remediation, intervention, 
 32.24  accommodations, or modifications; 
 32.25     (6) instructional materials and technology appropriate for 
 32.26  meeting the individual needs of these learners; 
 32.27     (7) programs to reduce truancy, encourage completion of 
 32.28  high school, enhance self-concept, provide health services, 
 32.29  provide nutrition services, provide a safe and secure learning 
 32.30  environment, provide coordination for pupils receiving services 
 32.31  from other governmental agencies, provide psychological services 
 32.32  to determine the level of social, emotional, cognitive, and 
 32.33  intellectual development, and provide counseling services, 
 32.34  guidance services, and social work services; 
 32.35     (8) bilingual programs, bicultural programs, and programs 
 32.36  for learners of limited English proficiency; 
 33.1      (9) all day kindergarten; 
 33.2      (10) extended school day and extended school year programs; 
 33.3      (11) substantial parent involvement in developing and 
 33.4   implementing remedial education or intervention plans for a 
 33.5   learner, including learning contracts between the school, the 
 33.6   learner, and the parent that establish achievement goals and 
 33.7   responsibilities of the learner and the learner's parent or 
 33.8   guardian; and 
 33.9      (12) other methods to increase achievement, as needed.  
 33.10     Sec. 45.  Minnesota Statutes 1998, section 126C.15, 
 33.11  subdivision 2, is amended to read: 
 33.12     Subd. 2.  [BUILDING ALLOCATION.] (a) A district must 
 33.13  allocate its compensatory revenue to each school building in the 
 33.14  district where the children who have generated the revenue are 
 33.15  served. 
 33.16     (b) Notwithstanding paragraph (a), for fiscal years 1999 
 33.17  and 2000, upon approval by the commissioner, a district may 
 33.18  allocate up to five percent of the amount of compensatory 
 33.19  revenue that the district would have received under Minnesota 
 33.20  Statutes 1996, section 126C.10 124A.22, subdivision 3, for 
 33.21  fiscal year 1998, computed using a basic formula allowance of 
 33.22  $3,581, to school sites according to a plan adopted by the 
 33.23  school board. 
 33.24     (c) For the purposes of this section and section 126C.05, 
 33.25  subdivision 3, "building" means education site as defined in 
 33.26  section 123B.04, subdivision 1. 
 33.27     (d) If the pupil is served at a site other than one owned 
 33.28  and operated by the district, the revenue shall be paid to the 
 33.29  district and used for services for pupils who generate the 
 33.30  revenue. 
 33.31     Sec. 46.  Minnesota Statutes 1998, section 126C.17, 
 33.32  subdivision 1, is amended to read: 
 33.33     Subdivision 1.  [REFERENDUM ALLOWANCE.] A district's 
 33.34  referendum revenue allowance equals the referendum revenue 
 33.35  authority for that year divided by its resident marginal cost 
 33.36  pupil units for that school year. 
 34.1      Sec. 47.  Minnesota Statutes 1998, section 126C.17, 
 34.2   subdivision 2, is amended to read: 
 34.3      Subd. 2.  [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 
 34.4   subdivision 1, a district's referendum allowance must not exceed 
 34.5   the greater of:  
 34.6      (1) the district's referendum allowance for fiscal year 
 34.7   1994; 
 34.8      (2) 25 percent of the formula allowance minus $300 for 
 34.9   fiscal year 1997 and later; or 
 34.10     (3) for a newly reorganized district created after July 1, 
 34.11  1994, the sum of the referendum revenue authority for the 
 34.12  reorganizing districts for the fiscal year preceding the 
 34.13  reorganization, divided by the sum of the resident marginal cost 
 34.14  pupil units of the reorganizing districts for the fiscal year 
 34.15  preceding the reorganization. 
 34.16     Sec. 48.  Minnesota Statutes 1998, section 126C.17, 
 34.17  subdivision 4, is amended to read: 
 34.18     Subd. 4.  [TOTAL REFERENDUM REVENUE.] The total referendum 
 34.19  revenue for each district equals the district's referendum 
 34.20  allowance times the resident marginal cost pupil units for the 
 34.21  school year. 
 34.22     Sec. 49.  Minnesota Statutes 1998, section 126C.17, 
 34.23  subdivision 5, is amended to read: 
 34.24     Subd. 5.  [REFERENDUM EQUALIZATION REVENUE.] (a) A 
 34.25  district's referendum equalization revenue equals $350 the 
 34.26  referendum equalization allowance times the district's resident 
 34.27  marginal cost pupil units for that year.  
 34.28     (b) The referendum equalization allowance equals $350 for 
 34.29  fiscal year 2000 and $415 for fiscal year 2001 and later. 
 34.30     (c) Referendum equalization revenue must not exceed a 
 34.31  district's total referendum revenue for that year. 
 34.32     Sec. 50.  Minnesota Statutes 1998, section 126C.17, 
 34.33  subdivision 6, is amended to read: 
 34.34     Subd. 6.  [REFERENDUM EQUALIZATION LEVY.] (a) For fiscal 
 34.35  year 1999 and thereafter, A district's referendum equalization 
 34.36  levy for a referendum levied against the referendum market value 
 35.1   of all taxable property as defined in section 126C.01, 
 35.2   subdivision 3, equals the district's referendum equalization 
 35.3   revenue times the lesser of one or the ratio of the district's 
 35.4   referendum market value per resident marginal cost pupil unit to 
 35.5   $476,000. 
 35.6      (b) For fiscal year 1999 and thereafter, A district's 
 35.7   referendum equalization levy for a referendum levied against the 
 35.8   net tax capacity of all taxable property equals the district's 
 35.9   referendum equalization revenue times the lesser of one or the 
 35.10  ratio of the district's adjusted net tax capacity per resident 
 35.11  marginal cost pupil unit to $10,000 $8,404. 
 35.12     Sec. 51.  Minnesota Statutes 1998, section 126C.17, 
 35.13  subdivision 9, is amended to read: 
 35.14     Subd. 9.  [REFERENDUM REVENUE.] (a) The revenue authorized 
 35.15  by section 126C.10, subdivision 1, may be increased in the 
 35.16  amount approved by the voters of the district at a referendum 
 35.17  called for the purpose.  The referendum may be called by the 
 35.18  board or shall be called by the board upon written petition of 
 35.19  qualified voters of the district.  The referendum must be 
 35.20  conducted one or two calendar years before the increased levy 
 35.21  authority, if approved, first becomes payable.  Only one 
 35.22  election to approve an increase may be held in a calendar year.  
 35.23  Unless the referendum is conducted by mail under paragraph (g), 
 35.24  the referendum must be held on the first Tuesday after the first 
 35.25  Monday in November.  The ballot must state the maximum amount of 
 35.26  the increased revenue per resident marginal cost pupil unit, the 
 35.27  estimated referendum tax rate as a percentage of market value in 
 35.28  the first year it is to be levied, and that the revenue must be 
 35.29  used to finance school operations.  The ballot may state a 
 35.30  schedule, determined by the board, of increased revenue per 
 35.31  resident pupil units that differs from year to year over the 
 35.32  number of years for which the increased revenue is authorized.  
 35.33  If the ballot contains a schedule showing different amounts, it 
 35.34  must also indicate the estimated referendum tax rate as a 
 35.35  percent of market value for the amount specified for the first 
 35.36  year and for the maximum amount specified in the schedule.  The 
 36.1   ballot may state that existing referendum levy authority is 
 36.2   expiring.  In this case, the ballot may also compare the 
 36.3   proposed levy authority to the existing expiring levy authority, 
 36.4   and express the proposed increase as the amount, if any, over 
 36.5   the expiring referendum levy authority.  The ballot must 
 36.6   designate the specific number of years, not to exceed ten, for 
 36.7   which the referendum authorization applies.  The notice required 
 36.8   under section 275.60 may be modified to read, in cases of 
 36.9   renewing existing levies: 
 36.10     "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
 36.11     FOR A PROPERTY TAX INCREASE." 
 36.12     The ballot may contain a textual portion with the 
 36.13  information required in this subdivision and a question stating 
 36.14  substantially the following:  
 36.15     "Shall the increase in the revenue proposed by (petition 
 36.16  to) the board of ........., School District No. .., be approved?"
 36.17     If approved, an amount equal to the approved revenue per 
 36.18  resident marginal cost pupil unit times the resident marginal 
 36.19  cost pupil units for the school year beginning in the year after 
 36.20  the levy is certified shall be authorized for certification for 
 36.21  the number of years approved, if applicable, or until revoked or 
 36.22  reduced by the voters of the district at a subsequent referendum.
 36.23     (b) The board must prepare and deliver by first class mail 
 36.24  at least 15 days but no more than 30 days before the day of the 
 36.25  referendum to each taxpayer a notice of the referendum and the 
 36.26  proposed revenue increase.  The board need not mail more than 
 36.27  one notice to any taxpayer.  For the purpose of giving mailed 
 36.28  notice under this subdivision, owners must be those shown to be 
 36.29  owners on the records of the county auditor or, in any county 
 36.30  where tax statements are mailed by the county treasurer, on the 
 36.31  records of the county treasurer.  Every property owner whose 
 36.32  name does not appear on the records of the county auditor or the 
 36.33  county treasurer is deemed to have waived this mailed notice 
 36.34  unless the owner has requested in writing that the county 
 36.35  auditor or county treasurer, as the case may be, include the 
 36.36  name on the records for this purpose.  The notice must project 
 37.1   the anticipated amount of tax increase in annual dollars and 
 37.2   annual percentage for typical residential homesteads, 
 37.3   agricultural homesteads, apartments, and commercial-industrial 
 37.4   property within the school district. 
 37.5      The notice for a referendum may state that an existing 
 37.6   referendum levy is expiring and project the anticipated amount 
 37.7   of increase over the existing referendum levy in the first year, 
 37.8   if any, in annual dollars and annual percentage for typical 
 37.9   residential homesteads, agricultural homesteads, apartments, and 
 37.10  commercial-industrial property within the district. 
 37.11     The notice must include the following statement:  "Passage 
 37.12  of this referendum will result in an increase in your property 
 37.13  taxes."  However, in cases of renewing existing levies, the 
 37.14  notice may include the following statement:  "Passage of this 
 37.15  referendum may result in an increase in your property taxes." 
 37.16     (c) A referendum on the question of revoking or reducing 
 37.17  the increased revenue amount authorized pursuant to paragraph 
 37.18  (a) may be called by the board and shall be called by the board 
 37.19  upon the written petition of qualified voters of the district.  
 37.20  A referendum to revoke or reduce the levy amount must be based 
 37.21  upon the dollar amount, local tax rate, or amount per resident 
 37.22  marginal cost pupil unit, that was stated to be the basis for 
 37.23  the initial authorization.  Revenue approved by the voters of 
 37.24  the district pursuant to paragraph (a) must be received at least 
 37.25  once before it is subject to a referendum on its revocation or 
 37.26  reduction for subsequent years.  Only one revocation or 
 37.27  reduction referendum may be held to revoke or reduce referendum 
 37.28  revenue for any specific year and for years thereafter. 
 37.29     (d) A petition authorized by paragraph (a) or (c) is 
 37.30  effective if signed by a number of qualified voters in excess of 
 37.31  15 percent of the registered voters of the district on the day 
 37.32  the petition is filed with the board.  A referendum invoked by 
 37.33  petition must be held on the date specified in paragraph (a). 
 37.34     (e) The approval of 50 percent plus one of those voting on 
 37.35  the question is required to pass a referendum authorized by this 
 37.36  subdivision. 
 38.1      (f) At least 15 days before the day of the referendum, the 
 38.2   district must submit a copy of the notice required under 
 38.3   paragraph (b) to the commissioner and to the county auditor of 
 38.4   each county in which the district is located.  Within 15 days 
 38.5   after the results of the referendum have been certified by the 
 38.6   board, or in the case of a recount, the certification of the 
 38.7   results of the recount by the canvassing board, the district 
 38.8   must notify the commissioner of the results of the referendum. 
 38.9      (g) Except for a referendum held under subdivision 11, any 
 38.10  referendum under this section held on a day other than the first 
 38.11  Tuesday after the first Monday in November must be conducted by 
 38.12  mail in accordance with section 204B.46.  Notwithstanding 
 38.13  paragraph (b) to the contrary, in the case of a referendum 
 38.14  conducted by mail under this paragraph, the notice required by 
 38.15  paragraph (b) must be prepared and delivered by first class mail 
 38.16  at least 20 days before the referendum. 
 38.17     Sec. 52.  Minnesota Statutes 1998, section 126C.22, 
 38.18  subdivision 2, is amended to read: 
 38.19     Subd. 2.  [DISTRICT COOPERATION LEVY.] To receive district 
 38.20  cooperation revenue, a district may levy an amount equal to the 
 38.21  district's cooperation revenue multiplied by the lesser of one, 
 38.22  or the ratio of the quotient derived by dividing the adjusted 
 38.23  net tax capacity of the district for the year preceding the year 
 38.24  the levy is certified by the resident pupil units in the 
 38.25  district for the school year to which the levy is attributable 
 38.26  to $3,500 $2,942. 
 38.27     Sec. 53.  [126C.23] [ALLOCATION OF GENERAL EDUCATION 
 38.28  REVENUE.] 
 38.29     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 38.30  section, "building" means education site as defined in section 
 38.31  123B.04, subdivision 1.  
 38.32     Subd. 2.  [BUILDING ALLOCATION.] A district must initially 
 38.33  allocate its general education and referendum revenue to each 
 38.34  building in the district where the children who have generated 
 38.35  the revenue are served.  General education and referendum 
 38.36  revenue generated by students served at sites not owned and 
 39.1   operated by the district must be allocated to a separate account 
 39.2   to be used for services for pupils who generated the revenue. 
 39.3      Subd. 3.  [REALLOCATION FOR EXPENDITURES.] A district may, 
 39.4   by board resolution, adjust the initial allocation so as to 
 39.5   expend revenue for any purpose including, but not limited to, 
 39.6   district services, revenues or other funds established, 
 39.7   reallocations among buildings and programs and, separately, the 
 39.8   costs of increases in compensation approved by the board for 
 39.9   teachers and other employees. 
 39.10     Subd. 4.  [SEPARATE ACCOUNTS.] Each district shall maintain 
 39.11  separate accounts to identify revenues and expenditures for each 
 39.12  building. 
 39.13     Subd. 5.  [DATA REPORTING.] Each district must report to 
 39.14  the commissioner the estimated amount of general education and 
 39.15  referendum initially allocated to each building under 
 39.16  subdivision 2 and the amount of any reallocations under 
 39.17  subdivision 3 by January 30 of the current fiscal year, and the 
 39.18  actual amount of general education and referendum revenue 
 39.19  initially allocated to each building under subdivision 2 and the 
 39.20  amount of any reallocations under subdivision 3 by January 30 of 
 39.21  the next fiscal year.  The commissioner must provide a report to 
 39.22  the kindergarten through grade 12 education finance committees 
 39.23  of the legislature by March 15 each year. 
 39.24     Sec. 54.  Minnesota Statutes 1998, section 126C.41, 
 39.25  subdivision 2, is amended to read: 
 39.26     Subd. 2.  [RETIRED EMPLOYEE HEALTH BENEFITS.] For taxes 
 39.27  payable in 1996, 1997, 1998, and 1999 only, A district may levy 
 39.28  an amount up to the amount the district is required by the 
 39.29  collective bargaining agreement in effect on March 30, 1992, to 
 39.30  pay for health insurance or unreimbursed medical expenses for 
 39.31  licensed and nonlicensed employees who have terminated services 
 39.32  in the employing district and withdrawn from active teaching 
 39.33  service or other active service, as applicable, before July 1, 
 39.34  1992.  The total amount of the levy each year may not exceed 
 39.35  $300,000 $400,000.  
 39.36     Sec. 55.  Minnesota Statutes 1998, section 126C.42, 
 40.1   subdivision 1, is amended to read: 
 40.2      Subdivision 1.  [1977 STATUTORY OPERATING DEBT.] (a) In 
 40.3   each year in which so required by this subdivision, a district 
 40.4   must make an additional levy to eliminate its statutory 
 40.5   operating debt, determined as of June 30, 1977, and certified 
 40.6   and adjusted by the commissioner.  This levy shall not be made 
 40.7   in more than 30 successive years and each year before it is 
 40.8   made, it must be approved by the commissioner and the approval 
 40.9   shall specify its amount.  This levy shall be an amount which is 
 40.10  equal to the amount raised by a levy of a net tax rate of 1.66 
 40.11  1.98 percent times the adjusted net tax capacity of the district 
 40.12  for the preceding year for taxes payable in 1991 2000 and 
 40.13  thereafter; provided that in the last year in which the district 
 40.14  is required to make this levy, it must levy an amount not to 
 40.15  exceed the amount raised by a levy of a net tax rate of 1.66 
 40.16  1.98 percent times the adjusted net tax capacity of the district 
 40.17  for the preceding year for taxes payable in 1991 2000 and 
 40.18  thereafter.  When the sum of the cumulative levies made pursuant 
 40.19  to this subdivision and transfers made according to section 
 40.20  123B.79, subdivision 6, equals an amount equal to the statutory 
 40.21  operating debt of the district, the levy shall be discontinued. 
 40.22     (b) The district must establish a special account in the 
 40.23  general fund which shall be designated "appropriated fund 
 40.24  balance reserve account for purposes of reducing statutory 
 40.25  operating debt" on its books and records.  This account shall 
 40.26  reflect the levy authorized pursuant to this subdivision.  The 
 40.27  proceeds of this levy must be used only for cash flow 
 40.28  requirements and must not be used to supplement district 
 40.29  revenues or income for the purposes of increasing the district's 
 40.30  expenditures or budgets. 
 40.31     (c) Any district which is required to levy pursuant to this 
 40.32  subdivision must certify the maximum levy allowable under 
 40.33  section 126C.13, subdivision 2, in that same year. 
 40.34     (d) Each district shall make permanent fund balance 
 40.35  transfers so that the total statutory operating debt of the 
 40.36  district is reflected in the general fund as of June 30, 1977. 
 41.1      Sec. 56.  Minnesota Statutes 1998, section 126C.42, 
 41.2   subdivision 2, is amended to read: 
 41.3      Subd. 2.  [1983 OPERATING DEBT.] (1) Each year, a district 
 41.4   may make an additional levy to eliminate a deficit in the net 
 41.5   unappropriated operating funds of the district, determined as of 
 41.6   June 30, 1983, and certified and adjusted by the commissioner.  
 41.7   This levy may in each year be an amount not to exceed the amount 
 41.8   raised by a levy of a net tax rate of 1.85 2.2 percent times the 
 41.9   adjusted net tax capacity for taxes payable in 1991 and 
 41.10  thereafter of the district for the preceding year as determined 
 41.11  by the commissioner.  However, the total amount of this levy for 
 41.12  all years it is made must not exceed the lesser of (a) the 
 41.13  amount of the deficit in the net unappropriated operating funds 
 41.14  of the district as of June 30, 1983, or (b) the amount of the 
 41.15  aid reduction, according to Laws 1981, Third Special Session 
 41.16  chapter 2, article 2, section 2, but excluding clauses (l), (m), 
 41.17  (n), (o), and (p), and Laws 1982, Third Special Session chapter 
 41.18  1, article 3, section 6, to the district in fiscal year 1983.  
 41.19  When the cumulative levies made pursuant to this subdivision 
 41.20  equal the total amount permitted by this subdivision, the levy 
 41.21  must be discontinued.  
 41.22     (2) The proceeds of this levy must be used only for cash 
 41.23  flow requirements and must not be used to supplement district 
 41.24  revenues or income for the purposes of increasing the district's 
 41.25  expenditures or budgets.  
 41.26     (3) A district that levies pursuant to this subdivision 
 41.27  must certify the maximum levy allowable under section 126C.13, 
 41.28  subdivision 2, in that same year. 
 41.29     Sec. 57.  Minnesota Statutes 1998, section 126C.63, 
 41.30  subdivision 5, is amended to read: 
 41.31     Subd. 5.  [LEVY.] "Levy" means a district's net debt 
 41.32  service levy after the reduction of debt service equalization 
 41.33  aid under section 123B.53, subdivision 6.  For taxes payable in 
 41.34  1994 and later, each district's maximum effort debt service levy 
 41.35  for purposes of subdivision 8, must be reduced by an equal 
 41.36  number of percentage points if the commissioner determines that 
 42.1   the levy reduction will not result in a statewide property tax 
 42.2   as would be required under Minnesota Statutes 1992, section 
 42.3   124.46, subdivision 3.  A district's levy that is adjusted under 
 42.4   this section must not be reduced below 18.74 22.3 percent of the 
 42.5   district's adjusted net tax capacity. 
 42.6      Sec. 58.  Minnesota Statutes 1998, section 127A.44, 
 42.7   subdivision 2, is amended to read: 
 42.8      Subd. 2.  [ADJUSTMENT TO AIDS.] (a) The amount specified in 
 42.9   subdivision 1 shall be used to adjust the following state aids 
 42.10  and credits in the order listed: 
 42.11     (1) general education aid authorized in section 126C.13; 
 42.12     (2) secondary vocational aid authorized in section 
 42.13  124D.453; 
 42.14     (3) special education aid authorized in sections 125A.75 
 42.15  and 125A.76; 
 42.16     (4) school-to-work program aid for children with a 
 42.17  disability authorized in section 124D.454; 
 42.18     (5) aid for pupils of limited English proficiency 
 42.19  authorized in section 124D.65; 
 42.20     (6) transportation aid authorized in section 123B.92; 
 42.21     (7) (6) community education programs aid authorized in 
 42.22  section 124D.20; 
 42.23     (8) (7) adult education aid authorized in section 124D.52; 
 42.24     (9) (8) early childhood family education aid authorized in 
 42.25  section 124D.135; 
 42.26     (10) (9) capital expenditure aid authorized in section 
 42.27  123B.57; 
 42.28     (11) (10) school district cooperation aid authorized in 
 42.29  section 126C.22; 
 42.30     (12) assurance of mastery aid according to section 124D.67; 
 42.31     (13) (11) homestead and agricultural credit aid, disparity 
 42.32  credit and aid, and changes to credits for prior year 
 42.33  adjustments according to section 273.1398, subdivisions 2, 3, 4, 
 42.34  and 7; 
 42.35     (14) (12) attached machinery aid authorized in section 
 42.36  273.138, subdivision 3; 
 43.1      (15) alternative delivery aid authorized in section 
 43.2   125A.78; 
 43.3      (16) special education equalization aid authorized in 
 43.4   section 125A.77; 
 43.5      (17) (13) special education excess cost aid authorized in 
 43.6   section 125A.79; and 
 43.7      (18) (14) learning readiness aid authorized in section 
 43.8   124D.16; and 
 43.9      (19) cooperation-combination aid authorized in section 
 43.10  123A.39, subdivision 3. 
 43.11     (b) The commissioner shall schedule the timing of the 
 43.12  adjustments to state aids and credits specified in subdivision 
 43.13  1, as close to the end of the fiscal year as possible. 
 43.14     <i>(Effective date:  Section 58 (127A.44, subdivision 2) is</i> 
 43.15  <i>effective the day following final enactment.)</i> 
 43.16     Sec. 59.  Minnesota Statutes 1998, section 127A.45, 
 43.17  subdivision 2, is amended to read: 
 43.18     Subd. 2.  [DEFINITIONS.] (a) The term "other district 
 43.19  receipts" means payments by county treasurers pursuant to 
 43.20  section 276.10, apportionments from the school endowment fund 
 43.21  pursuant to section 127A.33, apportionments by the county 
 43.22  auditor pursuant to section 127A.34, subdivision 2, and payments 
 43.23  to school districts by the commissioner of revenue pursuant to 
 43.24  chapter 298.  
 43.25     (b) The term "cumulative amount guaranteed" means the sum 
 43.26  of the following: 
 43.27     (1) one-third of the final adjustment payment according to 
 43.28  subdivision 9; plus 
 43.29     (2) the product of 
 43.30     (i) (1) the cumulative disbursement percentage shown in 
 43.31  subdivision 3; times 
 43.32     (ii) (2) the sum of 
 43.33     (i) 90 percent of the estimated aid and credit entitlements 
 43.34  paid according to subdivision 13; plus 
 43.35     (ii) 100 percent of the entitlements paid according to 
 43.36  subdivisions 11 and 12; plus 
 44.1      (iii) the other district receipts; plus 
 44.2      (iv) the final adjustment payment according to subdivision 
 44.3   9.  
 44.4      (c) The term "payment date" means the date on which state 
 44.5   payments to districts are made by the electronic funds transfer 
 44.6   method.  If a payment date falls on a Saturday, a Sunday, or a 
 44.7   weekday which is a legal holiday, the payment shall be made on 
 44.8   the immediately following business day.  The commissioner may 
 44.9   make payments on dates other than those listed in subdivision 3, 
 44.10  but only for portions of payments from any preceding payment 
 44.11  dates which could not be processed by the electronic funds 
 44.12  transfer method due to documented extenuating circumstances.  
 44.13     Sec. 60.  Minnesota Statutes 1998, section 127A.45, 
 44.14  subdivision 3, is amended to read: 
 44.15     Subd. 3.  [PAYMENT DATES AND PERCENTAGES.] The commissioner 
 44.16  shall pay to a district on the dates indicated an amount 
 44.17  computed as follows:  the cumulative amount guaranteed minus the 
 44.18  sum of (a) the district's other district receipts through the 
 44.19  current payment, and (b) the aid and credit payments through the 
 44.20  immediately preceding payment.  For purposes of this 
 44.21  computation, the payment dates and the cumulative disbursement 
 44.22  percentages are as follows:  
 44.23                           Payment date               Percentage 
 44.24  Payment 1    July 15:                              2.25  4.7
 44.25  Payment 2    July 30:                              4.50  7.0
 44.26  Payment 3    August 15:  the greater of (a) the final        
 44.27               adjustment for the prior fiscal year for
 44.28               the state paid property tax credits
 44.29               established in section 273.1392, or
 44.30               (b) the amount needed to provide 6.75 9.3 percent
 44.31  Payment 4    August 30:                            9.0  11.5
 44.32  Payment 5    September 15:                       12.75  15.2
 44.33  Payment 6    September 30:                       16.50  18.9
 44.34  Payment 7    October 15:  the greater of (a) one-half of
 44.35               the final adjustment for the prior fiscal year
 44.36               for all aid entitlements except state paid
 45.1                property tax credits, or (b) the amount needed to
 45.2                provide 20.75 23.1 percent
 45.3   Payment 8    October 30:  the greater of (a) one-half of the
 45.4                final adjustment for the prior fiscal year for all
 45.5                aid entitlements except state paid property
 45.6                tax credits, or (b) the amount needed
 45.7                to provide 25.0 27.5 percent
 45.8   Payment 9    November 15:                          31.0  33.5
 45.9   Payment 10   November 30:                          37.0  39.5
 45.10  Payment 11   December 15:                          40.0  42.5
 45.11  Payment 12   December 30:                          43.0  45.5
 45.12  Payment 13   January 15:                           47.25 49.8
 45.13  Payment 14   January 30:                           51.5  54.0
 45.14  Payment 15   February 15:                          56.0  58.5
 45.15  Payment 16   February 28:                          60.5  63.0
 45.16  Payment 17   March 15:                             65.25 67.8
 45.17  Payment 18   March 30:                             70.0  72.5
 45.18  Payment 19   April 15:                             73.0  75.7
 45.19  Payment 20   April 30:                             79.0  81.4
 45.20  Payment 21   May 15:                               82.0  84.4
 45.21  Payment 22   May 30:                               90.0  92.4
 45.22  Payment 23   June 20:                             100.0
 45.23     Sec. 61.  Minnesota Statutes 1998, section 127A.45, 
 45.24  subdivision 5, is amended to read: 
 45.25     Subd. 5.  [CASH FLOW ADJUSTMENT.] During each year in which 
 45.26  the cash flow low points for August, September, and October 
 45.27  estimated by the commissioner of finance for invested 
 45.28  treasurer's cash exceeds $360,000,000, the commissioner shall 
 45.29  increase the cumulative disbursement percentages established in 
 45.30  subdivision 3 to the following amounts: 
 45.31  Payment 3   August 15:                    12.75 15.3 percent
 45.32  Payment 4   August 30:                    15.00 17.6 percent
 45.33  Payment 5   September 15:                 17.25 19.8 percent
 45.34  Payment 6   September 30:                 19.50 21.9 percent
 45.35  Payment 7   October 15:                   21.75 24.2 percent
 45.36     Sec. 62.  Minnesota Statutes 1998, section 127A.45, is 
 46.1   amended by adding a subdivision to read: 
 46.2      Subd. 12a.  [FORWARD SHIFTED AID PAYMENTS.] Nineteen 
 46.3   percent of the state aid in fiscal year 1999, and 31 percent of 
 46.4   the state aid in fiscal years 2000 and later received under 
 46.5   section 124D.86 must be paid by the state to the recipient 
 46.6   school district on July 15 of that year.  The recipient school 
 46.7   district must recognize this aid in the same fiscal year as the 
 46.8   levy is recognized. 
 46.9      (<i>Effective Date:  Section 62 (127A.45, subdivision 12a) is</i> 
 46.10  <i>effective the day following final enactment for revenue for</i> 
 46.11  <i>fiscal year 1999 and later.</i>) 
 46.12     Sec. 63.  Minnesota Statutes 1998, section 127A.47, 
 46.13  subdivision 1, is amended to read: 
 46.14     Subdivision 1.  [AID TO SERVING DISTRICT OF RESIDENCE.] (a) 
 46.15  Unless otherwise specifically provided by law, general education 
 46.16  aid must be paid to the district of residence unless otherwise 
 46.17  specifically provided by law according to this subdivision.  
 46.18     (b) Except as provided in paragraph (c), general education 
 46.19  aid must be paid to the serving district.  
 46.20     (c) If the resident district pays tuition for a pupil under 
 46.21  section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 
 46.22  123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 
 46.23  125A.51, or 125A.65, general education aid, excluding basic 
 46.24  skills revenue under section 126C.10, subdivision 4, must be 
 46.25  paid to the resident district. 
 46.26     Sec. 64.  Minnesota Statutes 1998, section 127A.47, 
 46.27  subdivision 7, is amended to read: 
 46.28     Subd. 7.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
 46.29  education aid for districts must be adjusted for each pupil 
 46.30  attending a nonresident district under sections 123A.05 to 
 46.31  123A.08, 124D.03, 124D.06, 124D.07, 124D.08, and 124D.68.  The 
 46.32  adjustments must be made according to this subdivision. 
 46.33     (a) General education aid paid to a resident district must 
 46.34  be reduced by an amount equal to the general education revenue 
 46.35  exclusive of basic skills revenue referendum equalization aid 
 46.36  attributable to the pupil in the resident district. 
 47.1      (b) General education aid paid to a district serving a 
 47.2   pupil in programs listed in this subdivision must be increased 
 47.3   by an amount equal to the general education revenue exclusive of 
 47.4   basic skills revenue referendum equalization aid attributable to 
 47.5   the pupil in the nonresident district.  
 47.6      (c) If the amount of the reduction to be made from the 
 47.7   general education aid of the resident district is greater than 
 47.8   the amount of general education aid otherwise due the district, 
 47.9   the excess reduction must be made from other state aids due the 
 47.10  district. 
 47.11     (d) The district of residence must pay tuition to a 
 47.12  district or an area learning center, operated according to 
 47.13  paragraph (e), providing special instruction and services to a 
 47.14  pupil with a disability, as defined in section 125A.02, or a 
 47.15  pupil, as defined in section 125A.51, who is enrolled in a 
 47.16  program listed in this subdivision.  The tuition must be equal 
 47.17  to (1) the actual cost of providing special instruction and 
 47.18  services to the pupil, including a proportionate amount for debt 
 47.19  service and for capital expenditure facilities and equipment, 
 47.20  and debt service but not including any amount for 
 47.21  transportation, minus (2) the amount of general education 
 47.22  aid revenue and special education aid but not including any 
 47.23  amount for transportation, attributable to that pupil, that is 
 47.24  received by the district providing special instruction and 
 47.25  services. 
 47.26     (e) An area learning center operated by a service 
 47.27  cooperative, intermediate district, education district, or a 
 47.28  joint powers cooperative may elect through the action of the 
 47.29  constituent boards to charge tuition for pupils rather than to 
 47.30  calculate general education aid adjustments under paragraph (a), 
 47.31  (b), or (c).  The tuition must be equal to the greater of the 
 47.32  average general education revenue per pupil unit attributable to 
 47.33  the pupil, or the actual cost of providing the instruction, 
 47.34  excluding transportation costs, if the pupil meets the 
 47.35  requirements of section 125A.02 or 125A.51. 
 47.36     Sec. 65.  Minnesota Statutes 1998, section 127A.47, 
 48.1   subdivision 8, is amended to read: 
 48.2      Subd. 8.  [CHARTER SCHOOLS.] (a) The general education aid 
 48.3   for districts must be adjusted for each pupil attending a 
 48.4   charter school under section 124D.10.  The adjustments must be 
 48.5   made according to this subdivision. 
 48.6      (b) General education aid paid to a resident district must 
 48.7   be reduced by an amount equal to the general education revenue 
 48.8   exclusive of basic skills revenue. 
 48.9      (c) General education aid paid to a district in which a 
 48.10  charter school not providing transportation according to section 
 48.11  124D.10, subdivision 16, is located must be increased by an 
 48.12  amount equal to the product of:  (1) the sum of an amount equal 
 48.13  to the product of the formula allowance according to section 
 48.14  126C.10, subdivision 2, times .0485, plus the transportation 
 48.15  sparsity allowance for the district, plus the transportation 
 48.16  transition allowance for the district; times (2) the pupil units 
 48.17  attributable to the pupil.  
 48.18     (d) If the amount of the reduction to be made from the 
 48.19  general education aid of the resident district is greater than 
 48.20  the amount of general education aid otherwise due the district, 
 48.21  the excess reduction must be made from other state aids due the 
 48.22  district. 
 48.23     Sec. 66.  Minnesota Statutes 1998, section 127A.49, 
 48.24  subdivision 2, is amended to read: 
 48.25     Subd. 2.  [ABATEMENTS.] Whenever by virtue of chapter 278, 
 48.26  sections 270.07, 375.192, or otherwise, the net tax capacity of 
 48.27  any district for any taxable year is changed after the taxes for 
 48.28  that year have been spread by the county auditor and the local 
 48.29  tax rate as determined by the county auditor based upon the 
 48.30  original net tax capacity is applied upon the changed net tax 
 48.31  capacities, the county auditor shall, prior to February 1 of 
 48.32  each year, certify to the commissioner of children, families, 
 48.33  and learning the amount of any resulting net revenue loss that 
 48.34  accrued to the district during the preceding year.  Each year, 
 48.35  the commissioner shall pay an abatement adjustment to the 
 48.36  district in an amount calculated according to the provisions of 
 49.1   this subdivision.  This amount shall be deducted from the amount 
 49.2   of the levy authorized by section 126C.46.  The amount of the 
 49.3   abatement adjustment must be the product of:  
 49.4      (1) the net revenue loss as certified by the county 
 49.5   auditor, times 
 49.6      (2) the ratio of:  
 49.7      (i) the sum of the amounts of the district's certified levy 
 49.8   in the preceding year according to the following:  
 49.9      (A) section 126C.13 if the district received general 
 49.10  education aid according to that section for the second preceding 
 49.11  year; 
 49.12     (B) section 124.226, subdivisions 1 and 4, if the district 
 49.13  received transportation aid according to section 123B.92 for the 
 49.14  second preceding year; 
 49.15     (C) section 124.243, if the district received capital 
 49.16  expenditure facilities aid according to that section for the 
 49.17  second preceding year; 
 49.18     (D) section 124.244, if the district received capital 
 49.19  expenditure equipment aid according to that section for the 
 49.20  second preceding year; 
 49.21     (E) section 123B.57, if the district received health and 
 49.22  safety aid according to that section for the second preceding 
 49.23  year; 
 49.24     (F) (C) sections 124D.20, 124D.21, and 124D.56, if the 
 49.25  district received aid for community education programs according 
 49.26  to any of those sections for the second preceding year; 
 49.27     (G) (D) section 124D.135, subdivision 3, if the district 
 49.28  received early childhood family education aid according to 
 49.29  section 124D.135 for the second preceding year; and 
 49.30     (H) section 125A.77, subdivision 3, if the district 
 49.31  received special education levy equalization aid according to 
 49.32  that section for the second preceding year; 
 49.33     (I) (E) section 126C.17, subdivision 6, if the district 
 49.34  received referendum equalization aid according to that section 
 49.35  for the second preceding year; and 
 49.36     (J) section 124A.22, subdivision 4a, if the district 
 50.1   received training and experience aid according to that section 
 50.2   for the second preceding year; to 
 50.3      (ii) the total amount of the district's certified levy in 
 50.4   the preceding October December, plus or minus auditor's 
 50.5   adjustments. 
 50.6      Sec. 67.  Minnesota Statutes 1998, section 127A.49, 
 50.7   subdivision 3, is amended to read: 
 50.8      Subd. 3.  [EXCESS TAX INCREMENT.] (a) If a return of excess 
 50.9   tax increment is made to a district pursuant to section 469.176, 
 50.10  subdivision 2, or upon decertification of a tax increment 
 50.11  district, the school district's aid and levy limitations must be 
 50.12  adjusted for the fiscal year in which the excess tax increment 
 50.13  is paid under the provisions of this subdivision. 
 50.14     (b) An amount must be subtracted from the district's aid 
 50.15  for the current fiscal year equal to the product of: 
 50.16     (1) the amount of the payment of excess tax increment to 
 50.17  the district, times 
 50.18     (2) the ratio of: 
 50.19     (i) the sum of the amounts of the district's certified levy 
 50.20  for the fiscal year in which the excess tax increment is paid 
 50.21  according to the following: 
 50.22     (A) section 126C.13, if the district received general 
 50.23  education aid according to that section for the second preceding 
 50.24  year; 
 50.25     (B) section 124.226, subdivisions 1 and 4, if the district 
 50.26  received transportation aid according to section 123B.92 for the 
 50.27  second preceding year; 
 50.28     (C) section 124.243, if the district received capital 
 50.29  expenditure facilities aid according to that section for the 
 50.30  second preceding year; 
 50.31     (D) section 124.244, if the district received capital 
 50.32  expenditure equipment aid according to that section for the 
 50.33  second preceding year; 
 50.34     (E) section 123B.57, if the district received health and 
 50.35  safety aid according to that section for the second preceding 
 50.36  year; 
 51.1      (F) (C) sections 124D.20, 124D.21, and 124D.56, if the 
 51.2   district received aid for community education programs according 
 51.3   to any of those sections for the second preceding year; 
 51.4      (G) (D) section 124D.135, subdivision 3, if the district 
 51.5   received early childhood family education aid according to 
 51.6   section 124D.135 for the second preceding year; and 
 51.7      (H) section 125A.77, subdivision 3, if the district 
 51.8   received special education levy equalization aid according to 
 51.9   that section for the second preceding year; 
 51.10     (I) (E) section 126C.17, subdivision 6, if the district 
 51.11  received referendum equalization aid according to that section 
 51.12  for the second preceding year; and 
 51.13     (J) section 124A.22, subdivision 4a, if the district 
 51.14  received training and experience aid according to that section 
 51.15  for the second preceding year; to 
 51.16     (ii) the total amount of the district's certified levy for 
 51.17  the fiscal year, plus or minus auditor's adjustments. 
 51.18     (c) An amount must be subtracted from the school district's 
 51.19  levy limitation for the next levy certified equal to the 
 51.20  difference between: 
 51.21     (1) the amount of the distribution of excess increment; and 
 51.22     (2) the amount subtracted from aid pursuant to clause (a). 
 51.23     If the aid and levy reductions required by this subdivision 
 51.24  cannot be made to the aid for the fiscal year specified or to 
 51.25  the levy specified, the reductions must be made from aid for 
 51.26  subsequent fiscal years, and from subsequent levies.  The school 
 51.27  district must use the payment of excess tax increment to replace 
 51.28  the aid and levy revenue reduced under this subdivision. 
 51.29     (d) This subdivision applies only to the total amount of 
 51.30  excess increments received by a district for a calendar year 
 51.31  that exceeds $25,000. 
 51.32     Sec. 68.  Minnesota Statutes 1998, section 127A.51, is 
 51.33  amended to read: 
 51.34     127A.51 [STATEWIDE AVERAGE REVENUE.] 
 51.35     By October 1 of each year the commissioner must estimate 
 51.36  the statewide average adjusted general revenue per resident 
 52.1   adjusted marginal cost pupil unit and the disparity in adjusted 
 52.2   general revenue among pupils and districts by computing the 
 52.3   ratio of the ninety-fifth percentile to the fifth percentile of 
 52.4   adjusted general revenue.  The commissioner must provide that 
 52.5   information to all districts. 
 52.6      If the disparity in adjusted general revenue as measured by 
 52.7   the ratio of the ninety-fifth percentile to the fifth percentile 
 52.8   increases in any year, the commissioner shall recommend to the 
 52.9   legislature options for change in the general education formula 
 52.10  that will limit the disparity in adjusted general revenue to no 
 52.11  more than the disparity for the previous school year.  The 
 52.12  commissioner must submit the recommended options to the 
 52.13  education committees of the legislature by January 15. 
 52.14     For purposes of this section, adjusted general revenue 
 52.15  means the sum of basic revenue under section 126C.10, 
 52.16  subdivision 2; supplemental revenue under section 126C.10, 
 52.17  subdivisions 9 and 12; transition revenue under section 126C.10, 
 52.18  subdivision 20; and referendum revenue under section 126C.17. 
 52.19     Sec. 69.  Laws 1992, chapter 499, article 7, section 31, as 
 52.20  amended by Laws 1998, chapter 398, article 1, section 39, is 
 52.21  amended to read: 
 52.22     Sec. 31.  [REPEALER.] 
 52.23     Minnesota Statutes 1990, sections 124A.02, subdivision 24; 
 52.24  124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 
 52.25  124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 
 52.26  Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 
 52.27  23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 
 52.28  124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 
 52.29  124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 
 52.30  1; and 124A.29, subdivision 1, are repealed effective June 30, 
 52.31  2001 2002; Laws 1991, chapter 265, article 7, section 35, is 
 52.32  repealed. 
 52.33     Sec. 70.  Laws 1996, chapter 412, article 1, section 35, is 
 52.34  amended to read: 
 52.35     Sec. 35.  [REPEALER.] 
 52.36     Laws 1993, chapter 224, article 1, section 34, subdivision 
 53.1   1, is repealed.  Section 8 is repealed July 1, 1999. 
 53.2      <i>(Effective date:  Section 70 (Laws 1996, chapter 412,</i> 
 53.3   <i>article 1, section 35) is effective the day following final</i> 
 53.4   <i>enactment.)</i> 
 53.5      Sec. 71.  Laws 1997, First Special Session chapter 4, 
 53.6   article 1, section 61, subdivision 1, is amended to read: 
 53.7      Subdivision 1.  [REVENUE CONVERSION.] For taxes payable in 
 53.8   1998 and 1999, the commissioner of children, families, and 
 53.9   learning shall adjust each school district's revenue authority 
 53.10  that is established as a rate times net tax capacity or adjusted 
 53.11  net tax capacity under Minnesota Statutes, chapters 124 and 124A 
 53.12  120B, 122A, 123A, 123B, 124D, 125A, 126C, and 127A, by 
 53.13  multiplying each revenue amount by the ratio of the statewide 
 53.14  tax capacity as calculated using the class rates in effect for 
 53.15  assessment year 1996 to the statewide tax capacity using the 
 53.16  class rates for that assessment year.  Tax rates for referendum 
 53.17  revenues according to Minnesota Statutes, section 126C.17, and 
 53.18  operating debt levies according to Minnesota Statutes, section 
 53.19  126C.42, established for an individual district under this 
 53.20  subdivision for taxes payable in 1999 shall remain in effect for 
 53.21  later years for which the revenue is authorized to be computed 
 53.22  as a rate times net tax capacity or adjusted net tax capacity. 
 53.23     <i>(Effective date:  Section 71 (Laws 1997, First Special</i> 
 53.24  <i>Session chapter 4, article 1, section 61, subdivision 1) is</i> 
 53.25  <i>effective the day following final enactment.)</i> 
 53.26     Sec. 72.  Laws 1997, First Special Session chapter 4, 
 53.27  article 1, section 61, subdivision 2, is amended to read: 
 53.28     Subd. 2.  [TAX RATE ADJUSTMENT.] For taxes payable in 1998 
 53.29  and 1999, the commissioner shall adjust each tax rate 
 53.30  established under Minnesota Statutes, chapters 124 and 124A 
 53.31  120B, 122A, 123A, 123B, 124D, 125A, 126C, and 127A, by 
 53.32  multiplying the rate by the ratio of the statewide tax capacity 
 53.33  as calculated using the class rates in effect for assessment 
 53.34  year 1996 to the statewide tax capacity using the class rates 
 53.35  for that assessment year. 
 53.36     <i>(Effective date:  Section 72 (Laws 1997, First Special</i> 
 54.1   <i>Session chapter 4, article 1, section 61, subdivision 2) is</i> 
 54.2   <i>effective the day following final enactment.)</i> 
 54.3      Sec. 73.  Laws 1997, First Special Session chapter 4, 
 54.4   article 1, section 61, subdivision 3, as amended by Laws 1998, 
 54.5   chapter 398, article 1, section 41, is amended to read: 
 54.6      Subd. 3.  [EQUALIZING FACTORS.] For taxes payable in 1998 
 54.7   and 1999, the commissioner shall adjust each equalizing factor 
 54.8   established using adjusted net tax capacity per actual pupil 
 54.9   unit under Minnesota Statutes, chapters 124 and 124A 120B, 122A, 
 54.10  123A, 123B, 124D, 125A, 126C, and 127A, by dividing the 
 54.11  equalizing factor by the ratio of the statewide tax capacity as 
 54.12  calculated using the class rates in effect for assessment year 
 54.13  1996 to the statewide tax capacity using the class rates for 
 54.14  that assessment year. 
 54.15     <i>(Effective date:  Section 73 (Laws 1997, First Special</i> 
 54.16  <i>Session chapter 4, article 1, section 61, subdivision 3) is</i> 
 54.17  <i>effective the day following final enactment.)</i> 
 54.18     Sec. 74.  Laws 1997, First Special Session chapter 4, 
 54.19  article 1, section 61, subdivision 4, is amended to read: 
 54.20     Subd. 4.  [QUALIFYING RATE.] For taxes payable in 1998 and 
 54.21  1999, the commissioner shall adjust the qualifying rate under 
 54.22  Minnesota Statutes, section 124.95, subdivision 3, by 
 54.23  multiplying the qualifying rate times the ratio of the statewide 
 54.24  tax capacity, as calculated using the class rates in effect for 
 54.25  assessment year 1996, to the statewide tax capacity using the 
 54.26  class rates for that assessment year. 
 54.27     <i>(Effective date:  Section 74 (Laws 1997, First Special</i> 
 54.28  <i>Session chapter 4, article 1, section 61, subdivision 4) is</i> 
 54.29  <i>effective the day following final enactment.)</i> 
 54.30     Sec. 75.  [LEASE LEVY FOR ADMINISTRATIVE SPACE; EDEN 
 54.31  PRAIRIE.] 
 54.32     Each year, independent school district No. 272, Eden 
 54.33  Prairie, may levy the amount necessary to rent or lease 
 54.34  administrative space so that space previously used for 
 54.35  administrative purposes may be used for instructional purposes. 
 54.36     <i>(Effective date:  Section 75 (Lease Levy) is effective for</i> 
 55.1   <i>taxes payable in 2000 and later.)</i> 
 55.2      Sec. 76.  [OPERATING DEBT LEVY FOR TRACY SCHOOL DISTRICT.] 
 55.3      Subdivision 1.  [OPERATING DEBT ACCOUNT.] On July 1, 1999, 
 55.4   independent school district No. 417, Tracy, shall establish a 
 55.5   reserve account in the general fund.  The balance in this fund 
 55.6   shall equal the unreserved undesignated fund balance in the 
 55.7   operating funds of the district as of June 30, 1999. 
 55.8      Subd. 2.  [LEVY.] For taxes payable in each of the years 
 55.9   2000 to 2004, the district may levy an amount up to 20 percent 
 55.10  of the balance in the account on July 1, 1999.  The balance in 
 55.11  the account shall be adjusted each year by the amount of the 
 55.12  proceeds of the levy.  The proceeds of the levy shall be used 
 55.13  only for cash flow requirements and shall not be used to 
 55.14  supplement district revenues or income for the purposes of 
 55.15  increasing the district's expenditures or budgets. 
 55.16     Subd. 3.  [NO LOCAL APPROVAL.] Pursuant to Minnesota 
 55.17  Statutes, section 645.023, subdivision 1, paragraph (a), this 
 55.18  section is effective without local approval. 
 55.19     Sec. 77.  [FISCAL YEARS 2000 TO 2003 DECLINING PUPIL UNIT 
 55.20  AID; ST. PETER.] 
 55.21     Subdivision 1.  [FISCAL YEAR 2000.] For fiscal year 2000 
 55.22  only, independent school district No. 508, St. Peter, is 
 55.23  eligible for declining pupil unit aid equal to the product of 
 55.24  the general education formula allowance for fiscal year 2000 
 55.25  times the difference between the district's adjusted marginal 
 55.26  cost pupil units for the 1996-1997 school year and the 
 55.27  district's adjusted marginal cost pupil units for the 1999-2000 
 55.28  school year. 
 55.29     Subd. 2.  [FISCAL YEAR 2001.] For fiscal year 2001 only, 
 55.30  independent school district No. 508, St. Peter, is eligible for 
 55.31  declining pupil unit aid equal to the product of the general 
 55.32  education formula allowance for fiscal year 2001 times 75 
 55.33  percent of the difference between the district's adjusted 
 55.34  marginal cost pupil units for the 1996-1997 school year and the 
 55.35  district's adjusted marginal cost pupil units for the 2000-2001 
 55.36  school year. 
 56.1      Subd. 3.  [FISCAL YEAR 2002.] For fiscal year 2002 only, 
 56.2   independent school district No. 508, St. Peter, is eligible for 
 56.3   declining pupil unit aid equal to the product of the general 
 56.4   education formula allowance for fiscal year 2002 times 50 
 56.5   percent of the difference between the district's adjusted 
 56.6   marginal cost pupil units for the 1996-1997 school year and the 
 56.7   district's adjusted marginal cost pupil units for the 2001-2002 
 56.8   school year. 
 56.9      Subd. 4.  [FISCAL YEAR 2003.] For fiscal year 2003 only, 
 56.10  independent school district No. 508, St. Peter, is eligible for 
 56.11  declining pupil unit aid equal to the product of the general 
 56.12  education formula allowance for fiscal year 2003 times 25 
 56.13  percent of the difference between the district's adjusted 
 56.14  marginal cost pupil units for the 1996-1997 school year and the 
 56.15  district's adjusted marginal cost pupil units for the 2002-2003 
 56.16  school year. 
 56.17     Sec. 78.  [FISCAL YEARS 2000 to 2002 DECLINING PUPIL UNIT 
 56.18  AID; CLIMAX, KITTSON CENTRAL, ADA-BORUP, WARREN-ALVARADO-OSLO, 
 56.19  BRECKENRIDGE, EAST GRAND FORKS, AND STEPHEN-ARGYLE CENTRAL.] 
 56.20     Subdivision 1.  [FISCAL YEAR 2000.] For fiscal year 2000 
 56.21  only, independent school district Nos. 592, Climax; 2171, 
 56.22  Kittson Central; 2854, Ada-Borup; 2176, Warren-Alvarado-Oslo; 
 56.23  846, Breckenridge; 595, East Grand Forks; and 2856, 
 56.24  Stephen-Argyle Central are eligible for declining pupil unit aid 
 56.25  equal to the product of the general education formula allowance 
 56.26  for fiscal year 2000 times 75 percent of the difference between 
 56.27  the districts' adjusted marginal cost pupil units for the 
 56.28  1996-1997 school year and the districts' adjusted marginal cost 
 56.29  pupil units for the 1999-2000 school year. 
 56.30     Subd. 2.  [FISCAL YEAR 2001.] For fiscal year 2001 only, 
 56.31  independent school district Nos. 592, Climax; 2171, Kittson 
 56.32  Central; 2854, Ada-Borup; 2176, Warren-Alvarado-Oslo; 846, 
 56.33  Breckenridge; 595, East Grand Forks; and 2856, Stephen-Argyle 
 56.34  Central are eligible for declining pupil unit aid equal to the 
 56.35  product of the general education formula allowance for fiscal 
 56.36  year 2001 times 50 percent of the difference between the 
 57.1   districts' adjusted marginal cost pupil units for the 1996-1997 
 57.2   school year and the districts' adjusted marginal cost pupil 
 57.3   units for the 2000-2001 school year. 
 57.4      Subd. 3.  [FISCAL YEAR 2002.] For fiscal year 2002 only, 
 57.5   independent school district Nos. 592, Climax; 2171, Kittson 
 57.6   Central; 2854, Ada-Borup; 2176, Warren-Alvarado-Oslo; 846, 
 57.7   Breckenridge; 595, East Grand Forks; and 2856, Stephen-Argyle 
 57.8   Central are eligible for declining pupil unit aid equal to the 
 57.9   product of the general education formula allowance for fiscal 
 57.10  year 2002 times 25 percent of the difference between the 
 57.11  districts' adjusted marginal cost pupil units for the 1996-1997 
 57.12  school year and the districts' adjusted marginal cost pupil 
 57.13  units for the 2001-2002 school year. 
 57.14     Sec. 79.  [FISCAL YEARS 2000 TO 2007 AIRPORT RUNWAY IMPACT 
 57.15  AID; RICHFIELD.] 
 57.16     Subdivision 1.  [FISCAL YEAR 2000.] For fiscal year 2000 
 57.17  only, independent school district No. 280, Richfield, is 
 57.18  eligible for airport runway impact aid equal to the product of 
 57.19  the general education formula allowance for fiscal year 2000 
 57.20  times 25 percent of the pupil units which the district actually 
 57.21  lost by the 1999-2000 school year as a direct result of the 
 57.22  impact of the north/south runway. 
 57.23     Subd. 2.  [FISCAL YEAR 2001.] For fiscal year 2001 only, 
 57.24  independent school district No. 280, Richfield, is eligible for 
 57.25  airport runway impact aid equal to the product of the general 
 57.26  education formula allowance for fiscal year 2001 times 25 
 57.27  percent of the pupil units which the district actually lost by 
 57.28  the 2000-2001 school year as a direct result of the impact of 
 57.29  the north/south runway. 
 57.30     Subd. 3.  [FISCAL YEAR 2002.] For fiscal year 2002 only, 
 57.31  independent school district No. 280, Richfield, is eligible for 
 57.32  airport runway impact aid equal to the product of the general 
 57.33  education formula allowance for fiscal year 2002 times 50 
 57.34  percent of the pupil units which the district actually lost by 
 57.35  the 2001-2002 school year as a direct result of the impact of 
 57.36  the north/south runway. 
 58.1      Subd. 4.  [FISCAL YEAR 2003.] For fiscal year 2003 only, 
 58.2   independent school district No. 280, Richfield, is eligible for 
 58.3   airport runway impact aid equal to the product of the general 
 58.4   education formula allowance for fiscal year 2003 times 75 
 58.5   percent of the pupil units which the district actually lost by 
 58.6   the 2002-2003 school year as a direct result of the impact of 
 58.7   the north/south runway. 
 58.8      Subd. 5.  [FISCAL YEAR 2004.] For fiscal year 2004 only, 
 58.9   independent school district No. 280, Richfield, is eligible for 
 58.10  airport runway impact aid equal to the product of the general 
 58.11  education formula allowance for fiscal year 2004 times the pupil 
 58.12  units which the district actually lost by the 2003-2004 school 
 58.13  year as a direct result of the impact of the north/south runway. 
 58.14     Subd. 6.  [FISCAL YEAR 2005.] For fiscal year 2005 only, 
 58.15  independent school district No. 280, Richfield, is eligible for 
 58.16  airport runway impact aid equal to the product of the general 
 58.17  education formula allowance for fiscal year 2005 times 75 
 58.18  percent of the pupil units which the district actually lost by 
 58.19  the 2004-2005 school year as a direct result of the impact of 
 58.20  the north/south runway. 
 58.21     Subd. 7.  [FISCAL YEAR 2006.] For fiscal year 2006 only, 
 58.22  independent school district No. 280, Richfield, is eligible for 
 58.23  airport runway impact equal to the product of the general 
 58.24  education formula allowance for fiscal year 2006 times 50 
 58.25  percent of the pupil units which the district actually lost by 
 58.26  the 2005-2006 school year as a direct result of the impact of 
 58.27  the north/south runway. 
 58.28     Subd. 8.  [FISCAL YEAR 2007.] For fiscal year 2007 only, 
 58.29  independent school district No. 280, Richfield, is eligible for 
 58.30  airport runway impact aid equal to the product of the general 
 58.31  education formula allowance for fiscal year 2007 times 25 
 58.32  percent of the pupil units which the district actually lost by 
 58.33  the 2006-2007 school year as a direct result of the impact of 
 58.34  the north/south runway. 
 58.35     Sec. 80.  [DIRECTION TO THE DEPARTMENT.] 
 58.36     For fiscal year 2000 only, the department of children, 
 59.1   families, and learning shall make appropriate weighting 
 59.2   adjustments to fiscal year 1999 pupil units to reflect the 
 59.3   impact of Minnesota Statutes, section 126C.05, subdivision 5, 
 59.4   paragraph (b), and subdivision 6, paragraph (b). 
 59.5      Sec. 81.  [CLASS SIZE, ALL-DAY KINDERGARTEN, AND SPECIAL 
 59.6   EDUCATION STUDENT-TO-INSTRUCTOR RATIO RESERVE.] 
 59.7      A district is required to reserve $25 in fiscal year 2000 
 59.8   and $39 in fiscal year 2001 and later per adjusted marginal cost 
 59.9   pupil unit for class size reduction, all-day kindergarten, or 
 59.10  for reducing special education student-to-instructor ratios.  
 59.11  The school board of each district must pass a resolution stating 
 59.12  which one of these three programs will be funded with this 
 59.13  reserve.  The reserve amount under this section must be 
 59.14  allocated to the education site as defined in Minnesota 
 59.15  Statutes, section 123B.04, subdivision 1. 
 59.16     Sec. 82.  [REFERENDUM ALLOWANCE; WESTONKA.] 
 59.17     Subdivision 1.  [REFERENDUM REVENUE 
 59.18  AMOUNT.] Notwithstanding Minnesota Statutes 1998, section 
 59.19  126C.17, subdivision 2, the referendum revenue allowance for 
 59.20  independent school district No. 277, Westonka, for fiscal years 
 59.21  1998 and later, is the amount actually approved by the 
 59.22  district's voters by July 1, 1999. 
 59.23     Subd. 2.  [LEVY ADJUSTMENT.] Any levy authority authorized 
 59.24  under section 1 for fiscal years 1998, 1999, and 2000 may be 
 59.25  added to the levy limits for independent school district No. 
 59.26  277, Westonka, for taxes payable in 2000 or 2001. 
 59.27     Sec. 83.  [APPROPRIATIONS.] 
 59.28     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 59.29  LEARNING.] The sums indicated in this section are appropriated 
 59.30  from the general fund to the department of children, families, 
 59.31  and learning for the fiscal years designated.  
 59.32     Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
 59.33  general and supplemental education aid:  
 59.34       $3,048,212,000    .....     2000
 59.35       $3,196,703,000    .....     2001
 59.36     The 2000 appropriation includes $272,186,000 for 1999 and 
 60.1   $2,776,026,000 for 2000.  
 60.2      The 2001 appropriation includes $298,021,000 for 2000 and 
 60.3   $2,898,682,000 for 2001.  
 60.4      Subd. 3.  [TRANSPORTATION SAFETY.] For student 
 60.5   transportation safety aid according to Minnesota Statutes, 
 60.6   section 123B.92, subdivision 4: 
 60.7        $144,000       .....     2000 
 60.8      The 2000 appropriation includes $144,000 for 1999.  
 60.9      Subd. 4.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
 60.10  transportation of pupils attending post-secondary institutions 
 60.11  according to Minnesota Statutes, section 124D.09, or for 
 60.12  transportation of pupils attending nonresident districts 
 60.13  according to Minnesota Statutes, section 124D.03: 
 60.14       $102,000       .....     2000
 60.15       $102,000       .....     2001
 60.16     Any balance in the first year does not cancel but is 
 60.17  available in the second year. 
 60.18     Subd. 5.  [DISTRICT COOPERATION REVENUE.] For district 
 60.19  cooperation revenue aid: 
 60.20       $5,940,000     .....     2000
 60.21       $  563,000     .....     2001
 60.22     The 2000 appropriation includes $869,000 for 1999 and 
 60.23  $5,071,000 for 2000. 
 60.24     The 2001 appropriation includes $563,000 for 2000 and $0 
 60.25  for 2001. 
 60.26     Subd. 6.  [EMILY CHARTER SCHOOL GRANT.] For Emily Charter 
 60.27  School to correct for the impact of over reporting of 
 60.28  compensatory revenue:  
 60.29       $68,000      .....     2000 
 60.30     This appropriation is available until June 30, 2001. 
 60.31     Subd. 7.  [SUCCESS ACADEMY CHARTER SCHOOL.] For the Success 
 60.32  Academy charter school for compensatory pupils not counted in 
 60.33  the 1998-1999 school year compensatory revenue calculation 
 60.34  because of an expansion to a new site: 
 60.35       $127,000     .....     2000
 60.36     This appropriation is available until June 30, 2001. 
 61.1      Subd. 8.  [TRANSITION COMPENSATORY GRANTS.] (a) For 
 61.2   transition compensatory grants to school districts who received 
 61.3   additional compensatory grants under Laws 1998, chapter 398, 
 61.4   article 1, section 50, subdivision 4: 
 61.5        $3,950,000     .....     2000
 61.6      Of this amount: 
 61.7      (1) $2,550,000 is for a grant to independent school 
 61.8   district No. 11, Anoka-Hennepin; 
 61.9      (2) $250,000 is for a grant to independent school district 
 61.10  No. 281, Robbinsdale; 
 61.11     (3) $200,000 is for a grant to independent school district 
 61.12  No. 625, St. Paul; 
 61.13     (4) $450,000 is for a grant to independent school district 
 61.14  No. 709, Duluth; 
 61.15     (5) $400,000 is for a grant to independent school district 
 61.16  No. 279, Osseo; and 
 61.17     (6) $100,000 is for a grant to independent school district 
 61.18  No. 535, Rochester. 
 61.19     (b) In order for the district to receive a transition 
 61.20  compensatory grant under this subdivision, the district must 
 61.21  comply with Minnesota Statutes, section 123B.143, subdivision 1, 
 61.22  clause (5). 
 61.23     Subd. 9.  [RANGE ASSOCIATION OF MUNICIPALITIES AND 
 61.24  SCHOOLS.] For a grant to the range association of municipalities 
 61.25  and schools to provide a coordinated response to declining 
 61.26  enrollment in the region's school districts, including analysis 
 61.27  of curriculum, transportation, and district administration, and 
 61.28  to coordinate planning for the establishment of an area 
 61.29  vocational-technical training center open to all high school 
 61.30  students in the region: 
 61.31       $250,000     .....     2000
 61.32     This appropriation is available until June 30, 2001. 
 61.33     Subd. 10.  [DECLINING PUPIL UNIT AID.] For declining pupil 
 61.34  unit aid: 
 61.35       $2,237,000     .....     2000 
 61.36       $2,036,000     .....     2001 
 62.1      Subd. 11.  [AIRPORT RUNWAY IMPACT AID.] For airport runway 
 62.2   impact aid: 
 62.3        $31,000     .....     2000 
 62.4        $66,000     .....     2001 
 62.5      Subd. 12.  [MAGNET SCHOOL INTEGRATION REVENUE.] For magnet 
 62.6   school integration revenue: 
 62.7         $64,000     .....     2000 
 62.8        $140,000     .....     2001 
 62.9      Sec. 84.  [REPEALER.] 
 62.10     (a) Minnesota Statutes 1998, sections 123B.89; 123B.92, 
 62.11  subdivisions 6, 7, 8, and 10; and 127A.41, subdivisions 8 and 9, 
 62.12  are repealed.  Laws 1997, First Special Session chapter 4, 
 62.13  article 1, section 62, subdivision 5, is repealed. 
 62.14     (b) Minnesota Statutes 1998, sections 120B.05; and 123B.64, 
 62.15  subdivision 4, are repealed effective for revenue for fiscal 
 62.16  year 2000. 
 62.17     (c) Minnesota Statutes 1998, sections 123B.64, subdivisions 
 62.18  1, 2, and 3; and 124D.65, subdivisions 1, 2, and 3, are repealed 
 62.19  effective for revenue for fiscal year 2001. 
 62.20     (d) Minnesota Statutes 1998, sections 124D.67; 126C.05, 
 62.21  subdivision 4; and 126C.06, are repealed effective the day 
 62.22  following final enactment. 
 62.23     Sec. 85.  [EFFECTIVE DATES.] 
 62.24     When preparing the prekindergarten through grade 12 
 62.25  education conference committee report for adoption by the 
 62.26  legislature, the revisor shall combine all effective date 
 62.27  notations in this article into this effective dates section. 
 62.28                             ARTICLE 2 
 62.29                          SPECIAL PROGRAMS 
 62.30     Section 1.  Minnesota Statutes 1998, section 121A.41, 
 62.31  subdivision 10, is amended to read: 
 62.32     Subd. 10.  [SUSPENSION.] (a) "Suspension" means an action 
 62.33  by the school administration, under rules promulgated by the 
 62.34  school board, prohibiting a pupil from attending school for a 
 62.35  period of no more than ten school days.  If a suspension is 
 62.36  longer than five days, the suspending administrator must provide 
 63.1   the superintendent with a reason for the longer suspension.  
 63.2   This definition does not apply to dismissal from school for one 
 63.3   school day or less, except as provided in federal law for a 
 63.4   student with a disability.  Each suspension action may include a 
 63.5   readmission plan.  The readmission plan shall include, where 
 63.6   appropriate, a provision for implementing alternative 
 63.7   educational services upon readmission and may not be used to 
 63.8   extend the current suspension.  The school administration may 
 63.9   not impose consecutive suspensions against the same pupil for 
 63.10  the same course of conduct, or incident of misconduct, except 
 63.11  where the pupil will create an immediate and substantial danger 
 63.12  to self or to surrounding persons or property, or where the 
 63.13  district is in the process of initiating an expulsion, in which 
 63.14  case the school administration may extend the suspension to a 
 63.15  total of 15 days.  In the case of a pupil with a 
 63.16  disability, school districts must comply with applicable federal 
 63.17  law the pupil's individual education plan team must meet 
 63.18  immediately but not more than ten school days after the date on 
 63.19  which the decision to remove the pupil from the pupil's current 
 63.20  education placement is made.  The individual education plan team 
 63.21  shall at that meeting: 
 63.22     (1) conduct a review of the relationship between the 
 63.23  pupil's disability and the behavior subject to disciplinary 
 63.24  action; and 
 63.25     (2) determine the appropriateness of the pupil's education 
 63.26  plan. 
 63.27     (b) The requirements of the individual education plan team 
 63.28  meeting apply when: 
 63.29     (1) the parent requests a meeting; 
 63.30     (2) the pupil is removed from the pupil's current placement 
 63.31  for five or more consecutive days; or 
 63.32     (3) the pupil's total days of removal from the pupil's 
 63.33  placement during the school year exceed ten cumulative days in a 
 63.34  school year.  
 63.35  The school administration shall implement alternative 
 63.36  educational services when the suspension exceeds five days.  A 
 64.1   separate administrative conference is required for each period 
 64.2   of suspension. 
 64.3      Sec. 2.  Minnesota Statutes 1998, section 121A.43, is 
 64.4   amended to read: 
 64.5      121A.43 [EXCLUSION AND EXPULSION OF PUPILS WITH A 
 64.6   DISABILITY.] 
 64.7      When a pupil who has an individual education plan is 
 64.8   excluded or expelled under sections 121A.40 to 121A.56 for 
 64.9   misbehavior that is not a manifestation of the pupil's 
 64.10  disability, the district shall continue to provide special 
 64.11  education and related services after a period of suspension, if 
 64.12  suspension is imposed.  The district shall initiate a review of 
 64.13  the pupil's individual education plan within five school days of 
 64.14  and conduct a review of the relationship between the pupil's 
 64.15  disability and the behavior subject to disciplinary action and 
 64.16  determine the appropriateness of the pupil's education plan 
 64.17  before commencing an expulsion, or exclusion, or a suspension.  
 64.18     Sec. 3.  Minnesota Statutes 1998, section 122A.26, is 
 64.19  amended by adding a subdivision to read: 
 64.20     Subd. 3.  [ENGLISH AS A SECOND LANGUAGE.] Notwithstanding 
 64.21  subdivision 2, a person who possesses a bachelor's or master's 
 64.22  degree in English as a second language, applied linguistics, 
 64.23  bilingual education, or who possesses a related degree as 
 64.24  approved by the commissioner of children, families, and 
 64.25  learning, shall be permitted to teach English as a second 
 64.26  language in an adult basic education program that receives 
 64.27  funding under section 124D.53.  
 64.28     Sec. 4.  Minnesota Statutes 1998, section 122A.28, is 
 64.29  amended to read: 
 64.30     122A.28 [TEACHERS OF DEAF AND HARD-OF-HEARING STUDENTS; 
 64.31  LICENSURE REQUIREMENTS.] 
 64.32     Subdivision 1.  [K-12 LICENSE TO TEACH DEAF AND 
 64.33  HARD-OF-HEARING STUDENTS.] The board of teaching must review and 
 64.34  determine appropriate licensure requirements for a candidate for 
 64.35  a license or an applicant for a continuing license to teach deaf 
 64.36  and hard-of-hearing students in prekindergarten through grade 12.
 65.1   In addition to other requirements, a candidate must demonstrate 
 65.2   the minimum level of proficiency in American sign language as 
 65.3   determined by the board.  
 65.4      Subd. 2.  [LICENSURE FOR TEACHING ORAL/AURAL DEAF EDUCATION 
 65.5   PROGRAMS.] (a) The board of teaching shall adopt a separate 
 65.6   licensure rule for a candidate for a license or an applicant for 
 65.7   a continuing license to teach in oral/aural deaf education 
 65.8   programs or to provide services, including itinerant oral/aural 
 65.9   deaf education services, to deaf and hard-of-hearing students in 
 65.10  prekindergarten through grade 12. 
 65.11     (b) The board shall design rule requirements for teaching 
 65.12  oral/aural deaf education in collaboration with representatives 
 65.13  of parents and educators of deaf and hard-of-hearing students, 
 65.14  post-secondary programs preparing teachers of deaf and 
 65.15  hard-of-hearing students, and the department of children, 
 65.16  families, and learning. 
 65.17     (c) Rule requirements for teaching oral/aural deaf 
 65.18  education shall reflect best practice research in oral/aural 
 65.19  deaf education.  Advanced competencies in teaching deaf and 
 65.20  hard-of-hearing students through oral/aural modes shall be 
 65.21  included. 
 65.22     (d) Licensure requirements for teachers of oral/aural deaf 
 65.23  education must include minimum competency in American sign 
 65.24  language, but are not subject to the guidelines established in 
 65.25  Laws 1993, chapter 224, article 3, section 32, as amended by 
 65.26  Laws 1998, chapter 398, article 2, section 47.  The signed 
 65.27  communication proficiency interview shall not be required for 
 65.28  teachers licensed to teach deaf and hard-of-hearing students 
 65.29  through oral/aural deaf education methods. 
 65.30     (e) Requirements for teachers or oral/aural deaf education 
 65.31  shall include appropriate continuing education requirements for 
 65.32  renewing this licensure. 
 65.33     Sec. 5.  Minnesota Statutes 1998, section 123A.05, 
 65.34  subdivision 2, is amended to read: 
 65.35     Subd. 2.  [RESERVE REVENUE.] Each district that is a member 
 65.36  of an area learning center must reserve revenue in an amount 
 66.1   equal to at least 90 percent of the district average general 
 66.2   education revenue less compensatory per pupil unit minus an 
 66.3   amount equal to the product of the formula allowance according 
 66.4   to section 126C.10, subdivision 2, times .0485, calculated 
 66.5   without basic skills revenue unit, transportation sparsity 
 66.6   revenue, and the transportation portion of the transition 
 66.7   revenue adjustment, times the number of pupil units attending an 
 66.8   area learning center program under this section.  The amount of 
 66.9   reserved revenue under this subdivision may only be spent on 
 66.10  program costs associated with the area learning center.  
 66.11  Compensatory revenue must be allocated according to section 
 66.12  126C.15, subdivision 2.  
 66.13     Sec. 6.  Minnesota Statutes 1998, section 123A.05, 
 66.14  subdivision 3, is amended to read: 
 66.15     Subd. 3.  [ACCESS TO SERVICES.] A center shall have access 
 66.16  to the district's regular education programs, special education 
 66.17  programs, technology facilities, and staff.  It may contract 
 66.18  with individuals or post-secondary institutions.  It shall seek 
 66.19  the involvement of community education programs, post-secondary 
 66.20  institutions, interagency collaboratives, culturally based 
 66.21  organizations, mutual assistance associations, and other 
 66.22  community resources, businesses, and other federal, state, and 
 66.23  local public agencies. 
 66.24     Sec. 7.  Minnesota Statutes 1998, section 123A.06, 
 66.25  subdivision 1, is amended to read: 
 66.26     Subdivision 1.  [PROGRAM FOCUS.] (a) The programs and 
 66.27  services of a center must focus on academic and learning skills, 
 66.28  applied learning opportunities, trade and vocational skills, 
 66.29  work-based learning opportunities, work experience, youth 
 66.30  service to the community, and transition services, and English 
 66.31  language and literacy programs for children whose primary 
 66.32  language is a language other than English.  Applied learning, 
 66.33  work-based learning, and service learning may best be developed 
 66.34  in collaboration with a local education and transitions 
 66.35  partnership, culturally based organizations, mutual assistance 
 66.36  associations, or other community resources.  In addition to 
 67.1   offering programs, the center shall coordinate the use of other 
 67.2   available educational services, special education services, 
 67.3   social services, health services, and post-secondary 
 67.4   institutions in the community and services area.  
 67.5      (b) Consistent with the requirements of sections 121A.40 to 
 67.6   121A.56, a school district may provide an alternative education 
 67.7   program for a student who is within the compulsory attendance 
 67.8   age under section 120A.20, and who is involved in severe or 
 67.9   repeated disciplinary action. 
 67.10     Sec. 8.  Minnesota Statutes 1998, section 123A.06, 
 67.11  subdivision 2, is amended to read: 
 67.12     Subd. 2.  [PEOPLE TO BE SERVED.] A center shall provide 
 67.13  programs for secondary pupils and adults.  A center may also 
 67.14  provide programs and services for elementary and secondary 
 67.15  pupils who are not attending the center to assist them in being 
 67.16  successful in school.  A center shall use research-based best 
 67.17  practices and offer bilingual education programs to students and 
 67.18  their parents whose primary language is a language other than 
 67.19  English.  An individual education plan team may identify a 
 67.20  center as an appropriate placement to the extent a center can 
 67.21  provide the student with the appropriate special education 
 67.22  services described in the student's plan.  Pupils eligible to be 
 67.23  served are those age five to adults 22 and older who qualify 
 67.24  under the graduation incentives program in section 124D.68, 
 67.25  subdivision 2, or those pupils who are eligible to receive 
 67.26  special education services under sections 125A.03 to 125A.24, 
 67.27  and 125A.65. 
 67.28     Sec. 9.  Minnesota Statutes 1998, section 124D.081, 
 67.29  subdivision 3, is amended to read: 
 67.30     Subd. 3.  [QUALIFYING SCHOOL SITE.] (a) The commissioner 
 67.31  shall rank all school sites with kindergarten programs that do 
 67.32  not exclusively serve students under sections 125A.03 to 
 67.33  125A.24, and 125A.65.  The ranking must be from highest to 
 67.34  lowest based on the site's free and reduced lunch count as a 
 67.35  percent of the fall enrollment using the preceding October 1 
 67.36  enrollment data.  Once a school site is calculated to be 
 68.1   eligible, it remains eligible for the duration of the pilot 
 68.2   program, unless the site's ranking falls below the state average 
 68.3   for elementary schools.  For each school site, the percentage 
 68.4   used to calculate the ranking must be the greater of (1) the 
 68.5   percent of the fall kindergarten enrollment receiving free and 
 68.6   reduced lunch, or (2) the percent of the total fall enrollment 
 68.7   receiving free and reduced lunch.  The list of ranked sites must 
 68.8   be separated into the following geographic areas:  Minneapolis 
 68.9   district, St. Paul district, suburban Twin Cities districts in 
 68.10  the seven-county metropolitan area, and school districts in 
 68.11  greater Minnesota. 
 68.12     (b) The commissioner shall establish a process and 
 68.13  timelines to qualify school sites for the next school year.  
 68.14  School sites must be qualified in each geographic area from the 
 68.15  list of ranked sites until the estimated revenue available for 
 68.16  this program has been allocated.  The total estimated revenue 
 68.17  must be distributed to qualified school sites in each geographic 
 68.18  area as follows:  25 percent for Minneapolis sites, 25 percent 
 68.19  for St. Paul sites, 25 percent for suburban Twin Cities sites, 
 68.20  and 25 percent for greater Minnesota. 
 68.21     Sec. 10.  Minnesota Statutes 1998, section 124D.081, 
 68.22  subdivision 8, is amended to read: 
 68.23     Subd. 8.  [EXPIRATION.] This section applies for fiscal 
 68.24  years 1997, 1998, and 1999, 2000, and 2001, and expires June 30, 
 68.25  1999 2001. 
 68.26     Sec. 11.  Minnesota Statutes 1998, section 124D.454, 
 68.27  subdivision 5, is amended to read: 
 68.28     Subd. 5.  [STATE TOTAL SCHOOL-TO-WORK PROGRAM-DISABLED 
 68.29  REVENUE.] The state total school-to-work program-disabled 
 68.30  revenue for fiscal year 1998 2000 equals $8,924,000 $8,982,000.  
 68.31  The state total school-to-work program-disabled revenue for 
 68.32  fiscal year 1999 2001 equals $8,976,000 $8,967,000.  The state 
 68.33  total school-to-work program-disabled revenue for later fiscal 
 68.34  years equals:  
 68.35     (1) the state total school-to-work program-disabled revenue 
 68.36  for the preceding fiscal year; times 
 69.1      (2) the program growth factor; times 
 69.2      (3) the ratio of the state total average daily membership 
 69.3   for the current fiscal year to the state total average daily 
 69.4   membership for the preceding fiscal year. 
 69.5      Sec. 12.  Minnesota Statutes 1998, section 124D.52, is 
 69.6   amended by adding a subdivision to read: 
 69.7      Subd. 4.  [ENGLISH AS A SECOND LANGUAGE PROGRAMS.] A person 
 69.8   may teach an English as a second language class conducted at a 
 69.9   worksite, if the person meets the requirements of section 
 69.10  122A.19, subdivision 1, clause (a), regardless of whether that 
 69.11  person holds a teacher's license.  A person teaching English as 
 69.12  a second language for an approved adult basic education program 
 69.13  must possess a bachelor's or master's degree in English as a 
 69.14  second language, applied linguistics, bilingual education, or a 
 69.15  related degree as approved by the commissioner. 
 69.16     Sec. 13.  Minnesota Statutes 1998, section 124D.65, 
 69.17  subdivision 4, is amended to read: 
 69.18     Subd. 4.  [STATE TOTAL LEP REVENUE.] (a) The state total 
 69.19  limited English proficiency programs revenue for fiscal 
 69.20  year 1998 2000 equals $14,629,000 $27,454,000.  The state total 
 69.21  limited English proficiency programs revenue for fiscal 
 69.22  year 1999 2001 equals $16,092,000 $31,752,000.  
 69.23     (b) The state total limited English proficiency programs 
 69.24  revenue for later fiscal years equals: 
 69.25     (1) the state total limited English proficiency programs 
 69.26  revenue for the preceding fiscal year; times 
 69.27     (2) the program growth factor under section 125A.76 
 69.28  subdivision 1; times 
 69.29     (3) the ratio of the state total number of pupils with 
 69.30  limited English proficiency for the current fiscal year to the 
 69.31  state total number of pupils with limited English proficiency 
 69.32  for the preceding fiscal year. 
 69.33     Sec. 14.  Minnesota Statutes 1998, section 124D.70, is 
 69.34  amended to read: 
 69.35     124D.70 [ADDITIONAL REVENUE FOR HOMELESS STUDENTS.] 
 69.36     In addition to revenue received under sections 124D.68, 
 70.1   subdivisions 8 and 9, and 124D.69, subdivision 1, a district 
 70.2   shall receive additional revenue for homeless pupils who are 
 70.3   eligible to participate in the graduation incentives program 
 70.4   according to section 124D.68, subdivision 1, paragraph (a), 
 70.5   clause (9), equal to $100 per pupil unit.  The additional 
 70.6   revenue received must be based on the district's number of 
 70.7   homeless students enrolled on October 1.  The revenue received 
 70.8   under this section shall be used for expanding education 
 70.9   services to include preschool, after-school, or summer school 
 70.10  programs to provide transition and follow-up services to 
 70.11  homeless pupils who are placed or mainstreamed in a district 
 70.12  school, or to provide parent education and support services.  
 70.13  The additional revenue shall be paid to the public or nonprofit 
 70.14  school program providing services to homeless pupils.  A student 
 70.15  shall not be considered homeless under this section if the 
 70.16  student was displaced from home as a result of a natural 
 70.17  disaster. 
 70.18     Sec. 15.  [124D.701] [CARE AND TREATMENT INSTRUCTIONAL 
 70.19  AID.] 
 70.20     The state must pay each district up to 50 percent of the 
 70.21  nonreimbursed instructional expenses incurred when a nondisabled 
 70.22  child has been placed in a care and treatment facility, or 
 70.23  detention facility, according to section 125A.51.  In order to 
 70.24  receive reimbursement according to this section, the facility 
 70.25  must provide an education program, which has been approved by 
 70.26  the commissioner according to section 125A.515. 
 70.27     In a form and manner determined by the commissioner, the 
 70.28  district may bill the state no more than 50 percent of the 
 70.29  allowable expenses incurred in providing the services minus the 
 70.30  general education revenue of the district for the child and any 
 70.31  other aid earned on behalf of the child.  In accordance with 
 70.32  section 125A.80, the commissioner shall determine allowable 
 70.33  expenses and maximum reimbursable rates for each type of service.
 70.34     <i>(Effective Date:  Section 15 (124D.701) is effective July</i> 
 70.35  <i>1, 2000.)</i> 
 70.36     Sec. 16.  Minnesota Statutes 1998, section 125A.023, is 
 71.1   amended to read: 
 71.2      125A.023 [COORDINATED INTERAGENCY SERVICES.] 
 71.3      Subdivision 1.  [CITATION.] This section and section 
 71.4   125A.027 shall be cited as the "Interagency Services for 
 71.5   Children with Disabilities Act." 
 71.6      Subd. 2.  [PURPOSE.] It is the policy of the state to 
 71.7   develop and implement a coordinated, multidisciplinary, 
 71.8   interagency intervention service system for children ages three 
 71.9   to 22 21 with disabilities. 
 71.10     Subd. 3.  [DEFINITIONS.] For purposes of this section and 
 71.11  section 125A.027, the following terms have the meanings given 
 71.12  them: 
 71.13     (a) "Health plan" means: 
 71.14     (1) a health plan under section 62Q.01, subdivision 3; 
 71.15     (2) a county-based purchasing plan under section 256B.692; 
 71.16     (3) a self-insured health plan established by a local 
 71.17  government under section 471.617; or 
 71.18     (4) self-insured health coverage provided by the state to 
 71.19  its employees or retirees. 
 71.20     (b) For purposes of this section, "health plan company" 
 71.21  means an entity that issues a health plan as defined in 
 71.22  paragraph (a). 
 71.23     (c) "Individual interagency intervention plan" means a 
 71.24  standardized written plan describing those programs or services 
 71.25  and the accompanying funding sources available to eligible 
 71.26  children with disabilities. 
 71.27     (d) "Interagency intervention service system" means a 
 71.28  system that coordinates services and programs required in state 
 71.29  and federal law to meet the needs of eligible children with 
 71.30  disabilities ages three to 22 21, including: 
 71.31     (1) services provided under the following programs or 
 71.32  initiatives administered by state or local agencies: 
 71.33     (i) the maternal and child health program under title V of 
 71.34  the Social Security Act, United States Code, title 42, sections 
 71.35  701 to 709; 
 71.36     (ii) the Individuals with Disabilities Education Act under 
 72.1   United States Code, title 20, chapter 33, subchapter II, 
 72.2   sections 1411 to 1420; 
 72.3      (iii) medical assistance under the Social Security Act, 
 72.4   United States Code, title 42, chapter 7, subchapter XIX, section 
 72.5   1396, et seq.; 
 72.6      (iv) the Developmental Disabilities Assistance and Bill of 
 72.7   Rights Act, United States Code, title 42, chapter 75, subchapter 
 72.8   II, sections 6021 to 6030, Part B; 
 72.9      (v) the Head Start Act, United States Code, title 42, 
 72.10  chapter 105, subchapter II, sections 9831 to 9852; 
 72.11     (vi) rehabilitation services provided under chapter 268A; 
 72.12     (vii) Juvenile Court Act services provided under sections 
 72.13  260.011 to 260.301; 
 72.14     (viii) the children's mental health collaboratives under 
 72.15  section 245.493; 
 72.16     (ix) the family service collaboratives under section 
 72.17  124D.23; 
 72.18     (x) the family community support plan under section 
 72.19  245.4881, subdivision 4; 
 72.20     (xi) the MinnesotaCare program under chapter 256L; 
 72.21     (xii) the community health services grants under chapter 
 72.22  145; 
 72.23     (xiii) the Community Social Services Act funding under the 
 72.24  Social Security Act, United States Code, title 42, sections 1397 
 72.25  to 1397f; and 
 72.26     (xiv) the community interagency transition committees under 
 72.27  section 125A.22; 
 72.28     (2) services provided under a health plan in conformity 
 72.29  with an individual family service plan or an individual 
 72.30  education plan; and 
 72.31     (3) additional appropriate services that local agencies and 
 72.32  counties provide on an individual need basis upon determining 
 72.33  eligibility and receiving a request from the interagency early 
 72.34  intervention committee and the child's parent. 
 72.35     (e) "Children with disabilities" has the meaning given in 
 72.36  section 125A.02. 
 73.1      (f) A "standardized written plan" means those individual 
 73.2   services or programs available through the interagency 
 73.3   intervention service system to an eligible child other than the 
 73.4   services or programs described in the child's individual 
 73.5   education plan or the child's individual family service plan. 
 73.6      Subd. 4.  [STATE INTERAGENCY COMMITTEE.] (a) The governor 
 73.7   shall convene an 18-member interagency committee to develop and 
 73.8   implement a coordinated, multidisciplinary, interagency 
 73.9   intervention service system for children ages three to 22 21 
 73.10  with disabilities.  The commissioners of commerce, children, 
 73.11  families, and learning, health, human rights, human services, 
 73.12  economic security, and corrections shall each appoint two 
 73.13  committee members from their departments; the association of 
 73.14  Minnesota counties shall appoint two county representatives, one 
 73.15  of whom must be an elected official, as committee members; and 
 73.16  the Minnesota school boards association and the school nurse 
 73.17  association of Minnesota shall each appoint one committee 
 73.18  member.  The committee shall select a chair from among its 
 73.19  members. 
 73.20     (b) The committee shall: 
 73.21     (1) identify and assist in removing state and federal 
 73.22  barriers to local coordination of services provided to children 
 73.23  with disabilities; 
 73.24     (2) identify adequate, equitable, and flexible funding 
 73.25  sources to streamline these services; 
 73.26     (3) develop guidelines for implementing policies that 
 73.27  ensure a comprehensive and coordinated system of all state and 
 73.28  local agency services, including multidisciplinary assessment 
 73.29  practices for children with disabilities ages three to 22 21; 
 73.30     (4) develop, consistent with federal law, a standardized 
 73.31  written plan for providing services to a child with 
 73.32  disabilities; 
 73.33     (5) identify how current systems for dispute resolution can 
 73.34  be coordinated and develop guidelines for that coordination; 
 73.35     (6) develop an evaluation process to measure the success of 
 73.36  state and local interagency efforts in improving the quality and 
 74.1   coordination of services to children with disabilities ages 
 74.2   three to 22 21; 
 74.3      (7) develop guidelines to assist the governing boards of 
 74.4   the interagency early intervention committees in carrying out 
 74.5   the duties assigned in section 125A.027, subdivision 1, 
 74.6   paragraph (b); and 
 74.7      (8) carry out other duties necessary to develop and 
 74.8   implement within communities a coordinated, multidisciplinary, 
 74.9   interagency intervention service system for children with 
 74.10  disabilities. 
 74.11     (c) The committee shall consult on an ongoing basis with 
 74.12  the state education advisory committee for special education and 
 74.13  the governor's interagency coordinating council in carrying out 
 74.14  its duties under this section, including assisting the governing 
 74.15  boards of the interagency early intervention committees. 
 74.16     Subd. 5.  [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 
 74.17  commissioner of children, families, and learning, based on 
 74.18  recommendations from the state interagency committee, shall 
 74.19  issue a request for proposals by January 1, 1999, for grants to 
 74.20  the governing boards of interagency intervention committees 
 74.21  under section 125A.027 or a combination of one or more counties 
 74.22  and school districts to establish five voluntary interagency 
 74.23  intervention demonstration projects.  One grant shall be used to 
 74.24  implement a coordinated service system for all eligible children 
 74.25  with disabilities up to age five who received services under 
 74.26  sections 125A.26 to 125A.48.  One grant shall be used to 
 74.27  implement a coordinated service system for a population of 
 74.28  minority children with disabilities from ages 12 to 22 21, who 
 74.29  may have behavioral problems and are in need of transitional 
 74.30  services.  Each project must be operational by July 1, 1999.  
 74.31  The governing boards of the interagency early intervention 
 74.32  committees and the counties and school districts receiving 
 74.33  project grants must develop efficient ways to coordinate 
 74.34  services and funding for children with disabilities ages three 
 74.35  to 22 21, consistent with the requirements of this section and 
 74.36  section 125A.027 and the guidelines developed by the state 
 75.1   interagency committee under this section. 
 75.2      (b) The state interagency committee shall evaluate the 
 75.3   demonstration projects and provide the evaluation results to 
 75.4   interagency early intervention committees. 
 75.5      Subd. 6.  [THIRD-PARTY LIABILITY.] Nothing in this section 
 75.6   and section 125A.027 relieves a health plan company, third party 
 75.7   administrator or other third-party payer of an obligation to pay 
 75.8   for, or changes the validity of an obligation to pay for, 
 75.9   services provided to children with disabilities ages three to 22 
 75.10  21 and their families. 
 75.11     Subd. 7.  [AGENCY OBLIGATION.] Nothing in this section and 
 75.12  section 125A.027 removes the obligation of the state, counties, 
 75.13  local school districts, a regional agency, or a local agency or 
 75.14  organization to comply with any federal or state law that 
 75.15  mandates responsibility for finding, assessing, delivering, 
 75.16  assuring, or paying for education or related services for 
 75.17  children with disabilities and their families. 
 75.18     <i>(Effective date:  Section 16 (125A.023) is effective July</i> 
 75.19  <i>1, 2000.)</i> 
 75.20     Sec. 17.  Minnesota Statutes 1998, section 125A.027, is 
 75.21  amended to read: 
 75.22     125A.027 [INTERAGENCY EARLY INTERVENTION COMMITTEE 
 75.23  RESPONSIBILITIES.] 
 75.24     Subdivision 1.  [ADDITIONAL DUTIES.] (a) The governing 
 75.25  boards of the interagency early intervention committees are 
 75.26  responsible for developing and implementing interagency policies 
 75.27  and procedures to coordinate services at the local level for 
 75.28  children with disabilities ages three to 22 21 under guidelines 
 75.29  established by the state interagency committee under section 
 75.30  125A.023, subdivision 4.  Consistent with the requirements in 
 75.31  this section and section 125A.023, the governing boards of the 
 75.32  interagency early intervention committees shall organize as a 
 75.33  joint powers board under section 471.59 or enter into an 
 75.34  interagency agreement that establishes a governance structure. 
 75.35     (b) The governing board of each interagency early 
 75.36  intervention committee as defined in section 125A.30, paragraph 
 76.1   (a), which may include a juvenile justice professional, shall: 
 76.2      (1) identify and assist in removing state and federal 
 76.3   barriers to local coordination of services provided to children 
 76.4   with disabilities; 
 76.5      (2) identify adequate, equitable, and flexible use of 
 76.6   funding by local agencies for these services; 
 76.7      (3) implement policies that ensure a comprehensive and 
 76.8   coordinated system of all state and local agency services, 
 76.9   including multidisciplinary assessment practices, for children 
 76.10  with disabilities ages three to 22 21; 
 76.11     (4) use a standardized written plan for providing services 
 76.12  to a child with disabilities developed under section 125A.023; 
 76.13     (5) access the coordinated dispute resolution system and 
 76.14  incorporate the guidelines for coordinating services at the 
 76.15  local level, consistent with section 125A.023; 
 76.16     (6) use the evaluation process to measure the success of 
 76.17  the local interagency effort in improving the quality and 
 76.18  coordination of services to children with disabilities ages 
 76.19  three to 22 21 consistent with section 125A.023; 
 76.20     (7) develop a transitional plan for children moving from 
 76.21  the interagency early childhood intervention system under 
 76.22  sections 125A.259 to 125A.48 into the interagency intervention 
 76.23  service system under this section; 
 76.24     (8) coordinate services and facilitate payment for services 
 76.25  from public and private institutions, agencies, and health plan 
 76.26  companies; and 
 76.27     (9) share needed information consistent with state and 
 76.28  federal data practices requirements. 
 76.29     Subd. 2.  [APPROPRIATE AND NECESSARY SERVICES.] (a) 
 76.30  Parents, physicians, other health care professionals including 
 76.31  school nurses, and education and human services providers 
 76.32  jointly must determine appropriate and necessary services for 
 76.33  eligible children with disabilities ages three to 22 21.  The 
 76.34  services provided to the child under this section must conform 
 76.35  with the child's standardized written plan.  The governing board 
 76.36  of an interagency early intervention committee must provide 
 77.1   those services contained in a child's individual education plan 
 77.2   and those services for which a legal obligation exists. 
 77.3      (b) Nothing in this section or section 125A.023 increases 
 77.4   or decreases the obligation of the state, county, regional 
 77.5   agency, local school district, or local agency or organization 
 77.6   to pay for education, health care, or social services.  
 77.7      (c) A health plan may not exclude any medically necessary 
 77.8   covered service solely because the service is or could be 
 77.9   identified in a child's individual family service plan, 
 77.10  individual education plan, a plan established under section 504 
 77.11  of the federal Rehabilitation Act of 1973, or a student's 
 77.12  individual health plan.  This paragraph reaffirms the obligation 
 77.13  of a health plan company to provide or pay for certain medically 
 77.14  necessary covered services, and encourages a health plan company 
 77.15  to coordinate this care with any other providers of similar 
 77.16  services.  Also, a health plan company may not exclude from a 
 77.17  health plan any medically necessary covered service such as an 
 77.18  assessment or physical examination solely because the resulting 
 77.19  information may be used for an individual education plan or a 
 77.20  standardized written plan. 
 77.21     Subd. 3.  [IMPLEMENTATION TIMELINE.] By July 1, 2000, all 
 77.22  governing boards of interagency early intervention committees 
 77.23  statewide must implement a coordinated service system for 
 77.24  children up to age five with disabilities consistent with the 
 77.25  requirements of this section and section 125A.023 and the 
 77.26  evaluation results from the demonstration projects under section 
 77.27  125A.023, subdivision 5.  Children with disabilities up to the 
 77.28  age of 22 21 shall be eligible for coordinated services and 
 77.29  their eligibility to receive such services under this section 
 77.30  shall be phased in over a four-year period as follows: 
 77.31     (1) July 1, 2001, children up to age nine become eligible; 
 77.32     (2) July 1, 2002, children up to age 14 become eligible; 
 77.33  and 
 77.34     (3) July 1, 2003, children up to age 22 21 become eligible. 
 77.35     <i>(Effective date:  Section 17 (125A.027) is effective July</i> 
 77.36  <i>1, 2001.)</i> 
 78.1      Sec. 18.  Minnesota Statutes 1998, section 125A.03, is 
 78.2   amended to read: 
 78.3      125A.03 [SPECIAL INSTRUCTION FOR CHILDREN WITH A 
 78.4   DISABILITY.] 
 78.5      (a) As defined in paragraph (b), to the extent required in 
 78.6   federal law as of July 1, 1999, every district must provide 
 78.7   special instruction and services, either within the district or 
 78.8   in another district, for children with a disability who are 
 78.9   residents of the district and who are disabled as set forth in 
 78.10  section 125A.02. 
 78.11     (b) Notwithstanding any age limits in laws to the contrary, 
 78.12  special instruction and services must be provided from birth 
 78.13  until September July 1 after the child with a disability becomes 
 78.14  22 21 years old but shall not extend beyond secondary school or 
 78.15  its equivalent, except as provided in section 124D.68, 
 78.16  subdivision 2.  Local health, education, and social service 
 78.17  agencies must refer children under age five who are known to 
 78.18  need or suspected of needing special instruction and services to 
 78.19  the school district.  Districts with less than the minimum 
 78.20  number of eligible children with a disability as determined by 
 78.21  the state board must cooperate with other districts to maintain 
 78.22  a full range of programs for education and services for children 
 78.23  with a disability.  This section does not alter the compulsory 
 78.24  attendance requirements of section 120A.22. 
 78.25     <i>(Effective date:  Section 18, paragraph (b) (125A.03) is</i> 
 78.26  <i>effective July 1, 2002.)</i> 
 78.27     Sec. 19.  Minnesota Statutes 1998, section 125A.07, is 
 78.28  amended to read: 
 78.29     125A.07 [RULES OF STATE BOARD.] 
 78.30     (a) As defined in this paragraph, but not to exceed the 
 78.31  extent required by federal law as of July 1, 1999, the state 
 78.32  board must adopt rules relative to qualifications of essential 
 78.33  personnel, courses of study, methods of instruction, pupil 
 78.34  eligibility, size of classes, rooms, equipment, supervision, 
 78.35  parent consultation, and other necessary rules for instruction 
 78.36  of children with a disability.  These rules must provide 
 79.1   standards and procedures appropriate for the implementation of 
 79.2   and within the limitations of sections 125A.08 and 125A.09.  
 79.3   These rules must also provide standards for the discipline, 
 79.4   control, management, and protection of children with a 
 79.5   disability.  The state board must not adopt rules for pupils 
 79.6   served primarily in the regular classroom establishing either 
 79.7   case loads or the maximum number of pupils that may be assigned 
 79.8   to special education teachers.  The state board, in consultation 
 79.9   with the departments of health and human services, must adopt 
 79.10  permanent rules for instruction and services for children under 
 79.11  age five and their families.  These rules are binding on state 
 79.12  and local education, health, and human services agencies.  The 
 79.13  state board must adopt rules to determine eligibility for 
 79.14  special education services.  The rules must include procedures 
 79.15  and standards by which to grant variances for experimental 
 79.16  eligibility criteria.  The state board must, according to 
 79.17  section 14.05, subdivision 4, notify a district applying for a 
 79.18  variance from the rules within 45 calendar days of receiving the 
 79.19  request whether the request for the variance has been granted or 
 79.20  denied.  If a request is denied, the board must specify the 
 79.21  program standards used to evaluate the request and the reasons 
 79.22  for denying the request.  
 79.23     (b) As provided in this paragraph, but not to exceed the 
 79.24  extent required by federal law as of July 1, 1999, the state's 
 79.25  regulatory scheme should support schools by assuring that all 
 79.26  state special education rules adopted by the state board result 
 79.27  in one or more of the following outcomes: 
 79.28     (1) increased time available to teachers and, where 
 79.29  appropriate, to support staff including school nurses for 
 79.30  educating students through direct and indirect instruction; 
 79.31     (2) consistent and uniform access to effective education 
 79.32  programs for students with disabilities throughout the state; 
 79.33     (3) reduced inequalities and conflict, appropriate due 
 79.34  process hearing procedures and reduced court actions related to 
 79.35  the delivery of special education instruction and services for 
 79.36  students with disabilities; 
 80.1      (4) clear expectations for service providers and for 
 80.2   students with disabilities; 
 80.3      (5) increased accountability for all individuals and 
 80.4   agencies that provide instruction and other services to students 
 80.5   with disabilities; 
 80.6      (6) greater focus for the state and local resources 
 80.7   dedicated to educating students with disabilities; and 
 80.8      (7) clearer standards for evaluating the effectiveness of 
 80.9   education and support services for students with disabilities. 
 80.10     Sec. 20.  Minnesota Statutes 1998, section 125A.08, is 
 80.11  amended to read: 
 80.12     125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 
 80.13     (a) As defined in this section, to the extent required by 
 80.14  federal law as of July 1, 1999, every district must ensure the 
 80.15  following: 
 80.16     (1) all students with disabilities are provided the special 
 80.17  instruction and services which are appropriate to their needs.  
 80.18  Where the individual education plan team has determined 
 80.19  appropriate goals and objectives based on the student's needs, 
 80.20  including the extent to which the student can be included in the 
 80.21  least restrictive environment, and where there are essentially 
 80.22  equivalent and effective instruction, related services, or 
 80.23  assistive technology devices available to meet the student's 
 80.24  needs, cost to the district may be among the factors considered 
 80.25  by the team in choosing how to provide the appropriate services, 
 80.26  instruction, or devices that are to be made part of the 
 80.27  student's individual education plan.  The student's needs and 
 80.28  the special education instruction and services to be provided 
 80.29  must be agreed upon through the development of an individual 
 80.30  education plan.  The plan must address the student's need to 
 80.31  develop skills to live and work as independently as possible 
 80.32  within the community.  By grade 9 or age 14, the plan must 
 80.33  address the student's needs for transition from secondary 
 80.34  services to post-secondary education and training, employment, 
 80.35  community participation, recreation, and leisure and home 
 80.36  living.  In developing the plan, districts must inform parents 
 81.1   of the full range of transitional goals and related services 
 81.2   that should be considered.  The plan must include a statement of 
 81.3   the needed transition services, including a statement of the 
 81.4   interagency responsibilities or linkages or both before 
 81.5   secondary services are concluded; 
 81.6      (2) children with a disability under age five and their 
 81.7   families are provided special instruction and services 
 81.8   appropriate to the child's level of functioning and needs; 
 81.9      (3) children with a disability and their parents or 
 81.10  guardians are guaranteed procedural safeguards and the right to 
 81.11  participate in decisions involving identification, assessment 
 81.12  including assistive technology assessment, and educational 
 81.13  placement of children with a disability; 
 81.14     (4) eligibility and needs of children with a disability are 
 81.15  determined by an initial assessment or reassessment, which may 
 81.16  be completed using existing data under United States Code, title 
 81.17  20, section 33, et seq.; 
 81.18     (5) to the maximum extent appropriate, children with a 
 81.19  disability, including those in public or private institutions or 
 81.20  other care facilities, are educated with children who are not 
 81.21  disabled, and that special classes, separate schooling, or other 
 81.22  removal of children with a disability from the regular 
 81.23  educational environment occurs only when and to the extent that 
 81.24  the nature or severity of the disability is such that education 
 81.25  in regular classes with the use of supplementary services cannot 
 81.26  be achieved satisfactorily; 
 81.27     (6) in accordance with recognized professional standards, 
 81.28  testing and evaluation materials, and procedures used for the 
 81.29  purposes of classification and placement of children with a 
 81.30  disability are selected and administered so as not to be 
 81.31  racially or culturally discriminatory; and 
 81.32     (7) the rights of the child are protected when the parents 
 81.33  or guardians are not known or not available, or the child is a 
 81.34  ward of the state. 
 81.35     (b) For paraprofessionals employed to work in programs for 
 81.36  students with disabilities, the school board in each district 
 82.1   shall ensure that: 
 82.2      (1) before or immediately upon employment, each 
 82.3   paraprofessional develops sufficient knowledge and skills in 
 82.4   emergency procedures, building orientation, roles and 
 82.5   responsibilities, confidentiality, vulnerability, and 
 82.6   reportability, among other things, to begin meeting the needs of 
 82.7   the students with whom the paraprofessional works; 
 82.8      (2) annual training opportunities are available to enable 
 82.9   the paraprofessional to continue to further develop the 
 82.10  knowledge and skills that are specific to the students with whom 
 82.11  the paraprofessional works, including understanding 
 82.12  disabilities, following lesson plans, and implementing follow-up 
 82.13  instructional procedures and activities; and 
 82.14     (3) a districtwide process obligates each paraprofessional 
 82.15  to work under the ongoing direction of a licensed teacher and, 
 82.16  where appropriate and possible, the supervision of a school 
 82.17  nurse. 
 82.18     Sec. 21.  Minnesota Statutes 1998, section 125A.09, 
 82.19  subdivision 1, is amended to read: 
 82.20     Subdivision 1.  [DISTRICT OBLIGATION.] As defined in this 
 82.21  section, but not to exceed the extent required by federal law as 
 82.22  of July 1, 1999, every district must use the following 
 82.23  procedures for decisions involving identification, assessment, 
 82.24  and educational placement of children with a disability. 
 82.25     Sec. 22.  Minnesota Statutes 1998, section 125A.09, 
 82.26  subdivision 4, is amended to read: 
 82.27     Subd. 4.  [DISPUTE RESOLUTION.] Parents and guardians must 
 82.28  have an opportunity to meet with appropriate district staff in 
 82.29  at least one conciliation conference, mediation, or other method 
 82.30  of alternative dispute resolution that the parties agree to, if 
 82.31  they object to any proposal of which they are notified under 
 82.32  subdivision 1.  The state intends to encourage parties to 
 82.33  resolve disputes through mediation or other form of alternative 
 82.34  dispute resolution.  A school district and a parent or guardian 
 82.35  must participate in mediation using mediation services 
 82.36  acceptable to both parties, unless a party objects to the 
 83.1   mediation.  Mediation shall remain available to the parties 
 83.2   until a party objects to the mediation, or the mediator 
 83.3   determines that further efforts to mediate a dispute are not 
 83.4   warranted.  All mediation is subject to the confidentiality 
 83.5   requirements under rule 114.08 of the general rules of practice 
 83.6   for the district courts.  Alternative dispute resolution must 
 83.7   not be used to deny or delay a parent or guardian's right to a 
 83.8   due process hearing.  If the parent or guardian refuses efforts 
 83.9   by the district to conciliate the dispute with the district, the 
 83.10  requirement of an opportunity for conciliation or other 
 83.11  alternative dispute resolution must be deemed to be satisfied.  
 83.12  Notwithstanding other law, in any proceeding following a 
 83.13  conciliation conference, the district must not offer a 
 83.14  conciliation conference memorandum into evidence, except for any 
 83.15  portions that describe the district's final proposed offer of 
 83.16  service.  Otherwise, with respect to forms of dispute 
 83.17  resolution, mediation, or conciliation, Minnesota Rule of 
 83.18  Evidence 408 applies.  The department may reimburse the 
 83.19  districts or directly pay the costs of lay advocates, not to 
 83.20  exceed $150 per dispute, used in conjunction with alternative 
 83.21  dispute resolution.  
 83.22     Sec. 23.  Minnesota Statutes 1998, section 125A.09, 
 83.23  subdivision 6, is amended to read: 
 83.24     Subd. 6.  [IMPARTIAL DUE PROCESS HEARING.] Parents, 
 83.25  guardians, and the district must have an opportunity to obtain 
 83.26  an impartial due process hearing initiated and conducted by and 
 83.27  in the district responsible for assuring that an appropriate 
 83.28  program is provided in accordance with state board rules, if the 
 83.29  parent or guardian continues to object to:  
 83.30     (1) a proposed formal educational assessment or proposed 
 83.31  denial of a formal educational assessment of their child; 
 83.32     (2) the proposed placement of their child in, or transfer 
 83.33  of their child to a special education program; 
 83.34     (3) the proposed denial of placement of their child in a 
 83.35  special education program or the transfer of their child from a 
 83.36  special education program; 
 84.1      (4) the proposed provision or addition of special education 
 84.2   services for their child; or 
 84.3      (5) the proposed denial or removal of special education 
 84.4   services for their child.  
 84.5      A hearing officer may limit an impartial due process 
 84.6   hearing to an amount of time sufficient for each party to 
 84.7   present its case.  The party requesting the hearing shall plead 
 84.8   with specificity as to what issues are in dispute and all issues 
 84.9   not pleaded with specificity are deemed waived.  Parties must 
 84.10  limit evidence to the issues specifically pleaded.  A hearing 
 84.11  officer, at the officer's discretion, may exclude cumulative 
 84.12  evidence or may encourage parties to present only essential 
 84.13  witnesses. 
 84.14     Within five business days after the request for a hearing, 
 84.15  or as directed by the hearing officer, the objecting party must 
 84.16  provide the other party with a brief written statement of 
 84.17  particulars of the objection, the reasons for the objection, and 
 84.18  the specific remedies sought.  The other party shall provide the 
 84.19  objecting party with a written response to the statement of 
 84.20  objections within five business days of receipt of the statement.
 84.21     The hearing must take place before an impartial hearing 
 84.22  officer mutually agreed to by the school board and the parent or 
 84.23  guardian.  Within four three business days of the receipt of the 
 84.24  request for the hearing, if the parties have not agreed on the 
 84.25  hearing officer, the board must request the commissioner to 
 84.26  appoint a hearing officer from a list maintained for that 
 84.27  purpose.  If the parties have not agreed upon a hearing officer, 
 84.28  and the board has not requested that a hearing officer be 
 84.29  appointed by the commissioner within four business days after 
 84.30  the receipt of the request, the commissioner shall appoint a 
 84.31  hearing officer upon the request of either party.  A retired 
 84.32  judge, retired court referee, or retired federal magistrate 
 84.33  judge who is otherwise qualified under this section and wishes 
 84.34  to be a hearing officer may be put on the list.  The board must 
 84.35  include with the request the name of the person requesting the 
 84.36  hearing, the name of the student, the attorneys involved, if 
 85.1   any, and the date the hearing request was received.  The hearing 
 85.2   officer must not be a board member or employee of the district 
 85.3   where the child resides or of the child's district of residence, 
 85.4   an employee of any other public agency involved in the education 
 85.5   or care of the child, or any person with a personal or 
 85.6   professional interest that would conflict with the person's 
 85.7   objectivity at the hearing.  A person who otherwise qualifies as 
 85.8   a hearing officer is not an employee of the district solely 
 85.9   because the person is paid by the district to serve as a hearing 
 85.10  officer.  Any party to a hearing, except an expedited hearing 
 85.11  under federal law, may make and serve upon the opposing party 
 85.12  and the commissioner a notice to remove a hearing officer 
 85.13  appointed by the commissioner.  The notice shall be served and 
 85.14  filed within two business days after the party receives notice 
 85.15  of the appointment of the hearing officer by the commissioner. 
 85.16     No such notice may be filed by a party against a hearing 
 85.17  officer who has presided at a motion or any other proceeding of 
 85.18  which the party had notice.  A hearing officer who has presided 
 85.19  at a motion or other proceeding may not be removed except upon 
 85.20  an affirmative showing of prejudice on the part of the hearing 
 85.21  officer.  
 85.22     After the party has once disqualified a hearing officer as 
 85.23  a matter of right, that party may disqualify the substitute 
 85.24  hearing officer only by making an affirmative showing of 
 85.25  prejudice or bias to the commissioner, or to the chief 
 85.26  administrative law judge if the hearing officer is an 
 85.27  administrative law judge. 
 85.28     Upon the filing of a notice to remove or if a party makes 
 85.29  an affirmative showing of prejudice against a substitute hearing 
 85.30  officer, the commissioner shall assign any other hearing officer 
 85.31  to hear the matter. 
 85.32     If the hearing officer requests an independent educational 
 85.33  assessment of a child, the cost of the assessment must be at 
 85.34  district expense.  The proceedings must be recorded and 
 85.35  preserved, at the expense of the school district, pending 
 85.36  ultimate disposition of the action. 
 86.1      Sec. 24.  Minnesota Statutes 1998, section 125A.10, is 
 86.2   amended to read: 
 86.3      125A.10 [COORDINATING INTERAGENCY SERVICES.] 
 86.4      If at the time of initial referral for an educational 
 86.5   assessment, or a reassessment, the district determines that a 
 86.6   child with disabilities who is age 3 through 21 may be eligible 
 86.7   for interagency services, the district may request that the 
 86.8   county of residence provide a representative to the initial 
 86.9   assessment or reassessment team meeting or the first individual 
 86.10  education plan team meeting following the assessment or 
 86.11  reassessment.  The district may request to have a county 
 86.12  representative attend other individual education plan team 
 86.13  meetings when it is necessary to facilitate coordination between 
 86.14  district and county provided services.  Upon request from a 
 86.15  district, the resident county shall provide a representative to 
 86.16  assist the individual education plan team in determining the 
 86.17  child's eligibility for existing health, mental health, or other 
 86.18  support services administered or provided by the county.  The 
 86.19  individual education plan team and the county representative 
 86.20  must develop an interagency plan of care for an eligible child 
 86.21  and the child's family to coordinate services required under the 
 86.22  child's individual education plan with county services.  The 
 86.23  interagency plan of care must include appropriate family 
 86.24  information with the consent of the family, a description of how 
 86.25  services will be coordinated between the district and county, a 
 86.26  description of service coordinator responsibilities and 
 86.27  services, and a description of activities for obtaining 
 86.28  third-party payment for eligible services, including medical 
 86.29  assistance payments.  Any state, county, or city government 
 86.30  agency responsible for providing services or resources to 
 86.31  students with disabilities under this section is subject to the 
 86.32  same dispute resolution systems as local school districts, and 
 86.33  all such agencies must comply with corrective action 
 86.34  requirements that ensue from these systems. 
 86.35     Sec. 25.  Minnesota Statutes 1998, section 125A.15, is 
 86.36  amended to read: 
 87.1      125A.15 [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 
 87.2      The responsibility for special instruction and services for 
 87.3   a child with a disability temporarily placed in another district 
 87.4   for care and treatment shall be determined in the following 
 87.5   manner: 
 87.6      (a) The district of residence of a child shall be the 
 87.7   district in which the child's parent resides, if living, or the 
 87.8   child's guardian, or the district designated by the commissioner 
 87.9   if neither parent nor guardian is living within the state. 
 87.10     (b) When a child is temporarily placed for care and 
 87.11  treatment in a day program located in another district and the 
 87.12  child continues to live within the district of residence during 
 87.13  the care and treatment, the district of residence is responsible 
 87.14  for providing transportation to and from the care and treatment 
 87.15  facility and an appropriate educational program for the 
 87.16  child.  Transportation shall only be provided by the district 
 87.17  during regular operating hours of the district.  The district 
 87.18  may provide the educational program at a school within the 
 87.19  district of residence, at the child's residence, or in the 
 87.20  district in which the day treatment center is located by paying 
 87.21  tuition to that district. 
 87.22     (c) When a child is temporarily placed in a residential 
 87.23  program for care and treatment, the nonresident district in 
 87.24  which the child is placed is responsible for providing an 
 87.25  appropriate educational program for the child and necessary 
 87.26  transportation while the child is attending the educational 
 87.27  program; and must bill the district of the child's residence for 
 87.28  the actual cost of providing the program, as outlined in section 
 87.29  125A.11.  However, the board, lodging, and treatment costs 
 87.30  incurred in behalf of a child with a disability placed outside 
 87.31  of the school district of residence by the commissioner of human 
 87.32  services or the commissioner of corrections or their agents, for 
 87.33  reasons other than providing for the child's special educational 
 87.34  needs must not become the responsibility of either the district 
 87.35  providing the instruction or the district of the child's 
 87.36  residence.  For the purposes of this section, the state 
 88.1   correctional facilities operated on a fee-for-service basis are 
 88.2   considered to be residential programs for care and treatment. 
 88.3      (d) The district of residence shall pay tuition and other 
 88.4   program costs, not including transportation costs, to the 
 88.5   district providing the instruction and services.  The district 
 88.6   of residence may claim general education aid for the child as 
 88.7   provided by law.  Transportation costs must be paid by the 
 88.8   district responsible for providing the transportation and the 
 88.9   state must pay transportation aid to that district. 
 88.10     Sec. 26.  [125A.155] [SPECIAL EDUCATION RECIPROCITY; 
 88.11  COMMISSIONER DUTIES.] 
 88.12     The commissioner of children, families, and learning must 
 88.13  develop a special education reciprocity agreement form.  The 
 88.14  reciprocity form must specify the procedures used to calculate 
 88.15  special education tuition charges for both Minnesota students 
 88.16  that are served in other states and for out-of-state students 
 88.17  who are served in Minnesota.  The commissioner shall attempt to 
 88.18  enter into reciprocity agreements with any state that sends 
 88.19  students to Minnesota and any state that provides services to 
 88.20  Minnesota students. 
 88.21     Sec. 27.  Minnesota Statutes 1998, section 125A.18, is 
 88.22  amended to read: 
 88.23     125A.18 [SPECIAL INSTRUCTION; NONPUBLIC SCHOOLS.] 
 88.24     No resident of a district who is eligible for special 
 88.25  instruction and services under this section may be denied 
 88.26  instruction and service on a shared time basis consistent with 
 88.27  section 126C.19, subdivision 4, because of attending a nonpublic 
 88.28  school defined in section 123B.41, subdivision 9.  If a resident 
 88.29  pupil with a disability attends a nonpublic school located 
 88.30  within the district of residence, the district must provide 
 88.31  necessary transportation for that pupil within the district 
 88.32  between the nonpublic school and the educational facility where 
 88.33  special instruction and services are provided on a shared time 
 88.34  basis.  If a resident pupil with a disability attends a 
 88.35  nonpublic school located in another district and if no agreement 
 88.36  exists under section 126C.19, subdivision 1 or 2, for providing 
 89.1   special instruction and services on a shared time basis to that 
 89.2   pupil by the district of attendance and where the special 
 89.3   instruction and services are provided within the district of 
 89.4   residence, the district of residence must provide necessary 
 89.5   transportation for that pupil between the boundary of the 
 89.6   district of residence and the educational facility.  The 
 89.7   district of residence may provide necessary transportation for 
 89.8   that pupil between its boundary and the nonpublic school 
 89.9   attended, but the nonpublic school must pay the cost of 
 89.10  transportation provided outside the district boundary.  
 89.11     Parties serving students on a shared time basis have access 
 89.12  to due process hearing system described under United States 
 89.13  Code, title 20, and the complaint system under Code of Federal 
 89.14  Regulations, title 34, section 300.660-662.  In the event it is 
 89.15  determined under these systems that the nonpublic school or 
 89.16  staff impeded the public school district's provision of a free 
 89.17  appropriate education, the commissioner may withhold public 
 89.18  funds available to the nonpublic school proportionally 
 89.19  applicable to that student under section 123B.42. 
 89.20     Sec. 28.  Minnesota Statutes 1998, section 125A.21, 
 89.21  subdivision 2, is amended to read: 
 89.22     Subd. 2.  [THIRD PARTY REIMBURSEMENT.] Beginning July 
 89.23  1, 1999 2000, districts shall seek reimbursement from insurers 
 89.24  and similar third parties for the cost of services provided by 
 89.25  the district whenever the services provided by the district are 
 89.26  otherwise covered by the child's health coverage.  Districts 
 89.27  shall request, but may not require, the child's family to 
 89.28  provide information about the child's health coverage when a 
 89.29  child with a disability begins to receive services from the 
 89.30  district of a type that may be reimbursable, and shall request, 
 89.31  but may not require, updated information after that as needed.  
 89.32  Districts shall request, but may not require, the child's parent 
 89.33  or legal representative to sign a consent form, permitting the 
 89.34  school district to apply for and receive reimbursement directly 
 89.35  from the insurer or other similar third party, to the extent 
 89.36  permitted by the insurer or other third party and subject to 
 90.1   their networking credentialing, prior authorization, and 
 90.2   determination of medical necessity criteria. 
 90.3      Sec. 29.  Minnesota Statutes 1998, section 125A.24, is 
 90.4   amended to read: 
 90.5      125A.24 [PARENT ADVISORY COMMITTEES COUNCILS.] 
 90.6      Provisions of Minnesota Rules, part 3525.1100, regarding 
 90.7   parent advisory committees apply to local boards or cooperative 
 90.8   boards carrying out the provisions of this section.  In order to 
 90.9   increase the involvement of parents of children with 
 90.10  disabilities in district policy-making and decision-making, 
 90.11  school districts must have a special education advisory council 
 90.12  that is incorporated into the district's special education 
 90.13  system plan. 
 90.14     (1) This advisory council may be established either for 
 90.15  individual districts or in cooperation with other districts who 
 90.16  are members of the same special education cooperative. 
 90.17     (2) A district may set up this council as a subgroup of an 
 90.18  existing board, council, or committee. 
 90.19     (3) At least half of the designated council members must be 
 90.20  parents of students with a disability.  The number of members, 
 90.21  frequency of meetings, and operational procedures are to be 
 90.22  locally determined. 
 90.23     Sec. 30.  Minnesota Statutes 1998, section 125A.30, is 
 90.24  amended to read: 
 90.25     125A.30 [INTERAGENCY EARLY INTERVENTION COMMITTEES.] 
 90.26     (a) A school district, group of districts, or special 
 90.27  education cooperative, in cooperation with the health and human 
 90.28  service agencies located in the county or counties in which the 
 90.29  district or cooperative is located, must establish an 
 90.30  interagency early intervention committee for children with 
 90.31  disabilities under age five and their families under this 
 90.32  section, and for children with disabilities ages three to 22 
 90.33  consistent with the requirements under sections 125A.023 and 
 90.34  125A.027.  Committees must include representatives of local and 
 90.35  regional health, education, and county human service agencies, 
 90.36  county boards, school boards, early childhood family education 
 91.1   programs, parents of young children with disabilities under age 
 91.2   12, current service providers, and may also include 
 91.3   representatives from other private or public agencies and school 
 91.4   nurses.  The committee must elect a chair from among its members 
 91.5   and must meet at least quarterly. 
 91.6      (b) The committee must develop and implement interagency 
 91.7   policies and procedures concerning the following ongoing duties: 
 91.8      (1) develop public awareness systems designed to inform 
 91.9   potential recipient families of available programs and services; 
 91.10     (2) implement interagency child find systems designed to 
 91.11  actively seek out, identify, and refer infants and young 
 91.12  children with, or at risk of, disabilities and their families; 
 91.13     (3) establish and evaluate the identification, referral, 
 91.14  child and family assessment systems, procedural safeguard 
 91.15  process, and community learning systems to recommend, where 
 91.16  necessary, alterations and improvements; 
 91.17     (4) assure the development of individualized family service 
 91.18  plans for all eligible infants and toddlers with disabilities 
 91.19  from birth through age two, and their families, and individual 
 91.20  education plans and individual service plans when necessary to 
 91.21  appropriately serve children with disabilities, age three and 
 91.22  older, and their families and recommend assignment of financial 
 91.23  responsibilities to the appropriate agencies; 
 91.24     (5) encourage agencies to develop individual family service 
 91.25  plans for children with disabilities, age three and older; 
 91.26     (6) implement a process for assuring that services involve 
 91.27  cooperating agencies at all steps leading to individualized 
 91.28  programs; 
 91.29     (7) facilitate the development of a transitional plan if a 
 91.30  service provider is not recommended to continue to provide 
 91.31  services; 
 91.32     (8) identify the current services and funding being 
 91.33  provided within the community for children with disabilities 
 91.34  under age five and their families; 
 91.35     (9) develop a plan for the allocation and expenditure of 
 91.36  additional state and federal early intervention funds under 
 92.1   United States Code, title 20, section 1471 et seq.  (Part H, 
 92.2   Public Law Number 102-119) and United States Code, title 20, 
 92.3   section 631, et seq. (Chapter I, Public Law Number 89-313); and 
 92.4      (10) develop a policy that is consistent with section 
 92.5   13.05, subdivision 9, and federal law to enable a member of an 
 92.6   interagency early intervention committee to allow another member 
 92.7   access to data classified as not public. 
 92.8      (c) The local committee shall also: 
 92.9      (1) participate in needs assessments and program planning 
 92.10  activities conducted by local social service, health and 
 92.11  education agencies for young children with disabilities and 
 92.12  their families; 
 92.13     (2) review and comment on the early intervention section of 
 92.14  the total special education system for the district, the county 
 92.15  social service plan, the section or sections of the community 
 92.16  health services plan that address needs of and service 
 92.17  activities targeted to children with special health care needs, 
 92.18  and the section of the maternal and child health special project 
 92.19  grants that address needs of and service activities targeted to 
 92.20  children with chronic illness and disabilities; and. 
 92.21     (3) prepare a yearly summary on the progress of the 
 92.22  community in serving young children with disabilities, and their 
 92.23  families, including the expenditure of funds. 
 92.24     (d) The summary must be organized following a format 
 92.25  prescribed by the commissioner of the state lead agency and must 
 92.26  be submitted to each of the local agencies and to the state 
 92.27  interagency coordinating council by October 1 of each year. 
 92.28     The departments of children, families, and learning, 
 92.29  health, and human services must provide assistance to the local 
 92.30  agencies in developing cooperative plans for providing services. 
 92.31     Sec. 31.  Minnesota Statutes 1998, section 125A.33, is 
 92.32  amended to read: 
 92.33     125A.33 [SERVICE COORDINATION.] 
 92.34     (a) The team developing the IFSP under section 125A.32 must 
 92.35  select a service coordinator to carry out service coordination 
 92.36  activities on an interagency basis.  Service coordination must 
 93.1   actively promote a family's capacity and competency to identify, 
 93.2   obtain, coordinate, monitor, and evaluate resources and services 
 93.3   to meet the family's needs.  Service coordination activities 
 93.4   include: 
 93.5      (1) coordinating the performance of evaluations and 
 93.6   assessments; 
 93.7      (2) facilitating and participating in the development, 
 93.8   review, and evaluation of individualized family service plans; 
 93.9      (3) assisting families in identifying available service 
 93.10  providers; 
 93.11     (4) coordinating and monitoring the delivery of available 
 93.12  services; 
 93.13     (5) informing families of the availability of advocacy 
 93.14  services; 
 93.15     (6) coordinating with medical, health, and other service 
 93.16  providers; 
 93.17     (7) facilitating the development of a transition plan at 
 93.18  least six months 90 days before the time the child is no longer 
 93.19  eligible for early intervention services, if appropriate; 
 93.20     (8) managing the early intervention record and submitting 
 93.21  additional information to the local primary agency at the time 
 93.22  of periodic review and annual evaluations; and 
 93.23     (9) notifying a local primary agency when disputes between 
 93.24  agencies impact service delivery required by an IFSP. 
 93.25     (b) A service coordinator must be knowledgeable about 
 93.26  children and families receiving services under this section, 
 93.27  requirements of state and federal law, and services available in 
 93.28  the interagency early childhood intervention system.  
 93.29     Sec. 32.  Minnesota Statutes 1998, section 125A.44, is 
 93.30  amended to read: 
 93.31     125A.44 [COMPLAINT PROCEDURE.] 
 93.32     (a) An individual or organization may file a written signed 
 93.33  complaint with the commissioner of the state lead agency 
 93.34  alleging that one or more requirements of the Code of Federal 
 93.35  Regulations, title 34, part 303, is not being met.  The 
 93.36  complaint must include:  
 94.1      (1) a statement that the state has violated the Individuals 
 94.2   with Disabilities Education Act, United States Code, title 20, 
 94.3   section 1471 et seq. (Part H, Public Law Number 102-119) or Code 
 94.4   of Federal Regulations, title 34, section 303; and 
 94.5      (2) the facts on which the complaint is based. 
 94.6      (b) The commissioner of the state lead agency shall receive 
 94.7   and coordinate with other state agencies the review and 
 94.8   resolution of a complaint within 60 calendar days according to 
 94.9   the state interagency agreement required under section 125A.48.  
 94.10  The development and disposition of corrective action orders for 
 94.11  nonschool agencies shall be determined by the State Agency 
 94.12  Committee (SAC).  Failure to comply with corrective orders may 
 94.13  result in fiscal actions or other measures. 
 94.14     Sec. 33.  Minnesota Statutes 1998, section 125A.50, 
 94.15  subdivision 2, is amended to read: 
 94.16     Subd. 2.  [APPLICATION CONTENTS.] The application must set 
 94.17  forth: 
 94.18     (1) instructional services available to eligible pupils 
 94.19  under section 124D.67 124D.66, subdivision 3 2, and pupils with 
 94.20  a disability under section 125A.02; 
 94.21     (2) criteria to select pupils for the program and the 
 94.22  assessment procedures to determine eligibility; 
 94.23     (3) involvement in the program of parents of pupils in the 
 94.24  program, parent advocates, and community special education 
 94.25  advocates; 
 94.26     (4) accounting procedures to document that federal special 
 94.27  education money is used to supplement or increase the level of 
 94.28  special education instruction and related services provided with 
 94.29  state and local revenue, but in no case to supplant the state 
 94.30  and local revenue, and that districts are expending at least the 
 94.31  amount for special education instruction and related services 
 94.32  required by federal law; 
 94.33     (5) the role of regular and special education teachers in 
 94.34  planning and implementing the program; and 
 94.35     (6) other information requested by the commissioner.  
 94.36     Sec. 34.  Minnesota Statutes 1998, section 125A.50, 
 95.1   subdivision 5, is amended to read: 
 95.2      Subd. 5.  [ANNUAL REPORT.] Each year the district must 
 95.3   submit to the commissioner a report containing the information 
 95.4   described in subdivision 3 and section 124D.67, subdivision 7.  
 95.5      Sec. 35.  Minnesota Statutes 1998, section 125A.51, is 
 95.6   amended to read: 
 95.7      125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
 95.8   EDUCATION AND TRANSPORTATION.] 
 95.9      The responsibility for providing instruction and 
 95.10  transportation for a pupil without a disability who has a 
 95.11  short-term or temporary physical or emotional illness or 
 95.12  disability, as determined by the standards of the state board, 
 95.13  and who is temporarily placed for care and treatment for that 
 95.14  illness or disability, must be determined as provided in this 
 95.15  section.  
 95.16     (a) The school district of residence of the pupil is the 
 95.17  district in which the pupil's parent or guardian resides or the 
 95.18  district designated by the commissioner if neither parent nor 
 95.19  guardian is living within the state and tuition has been denied. 
 95.20     (b) When parental rights have been terminated by court 
 95.21  order, the legal residence of a child placed in a residential or 
 95.22  foster facility for care and treatment is the district in which 
 95.23  the child resides when parental rights have been terminated. 
 95.24     (b) (c) Before the placement of a pupil for care and 
 95.25  treatment, the district of residence must be notified and 
 95.26  provided an opportunity to participate in the placement 
 95.27  decision.  When an immediate emergency placement is necessary 
 95.28  and time does not permit resident district participation in the 
 95.29  placement decision, the district in which the pupil is 
 95.30  temporarily placed, if different from the district of residence, 
 95.31  must notify the district of residence of the emergency placement 
 95.32  within 15 days of the placement.  
 95.33     (c) (d) When a pupil without a disability is temporarily 
 95.34  placed for care and treatment in a day program and the pupil 
 95.35  continues to live within the district of residence during the 
 95.36  care and treatment, the district of residence must provide 
 96.1   instruction and necessary transportation to and from the 
 96.2   treatment facility for the pupil.  Transportation shall only be 
 96.3   provided by the district during regular operating hours of the 
 96.4   district. The district may provide the instruction at a school 
 96.5   within the district of residence, at the pupil's residence, or 
 96.6   in the case of a placement outside of the resident district, in 
 96.7   the district in which the day treatment program is located by 
 96.8   paying tuition to that district.  The district of placement may 
 96.9   contract with a facility to provide instruction by teachers 
 96.10  licensed by the state board of teaching.  
 96.11     (d) (e) When a pupil without a disability is temporarily 
 96.12  placed in a residential program for care and treatment, the 
 96.13  district in which the pupil is placed must provide instruction 
 96.14  for the pupil and necessary transportation while the pupil is 
 96.15  receiving instruction, and in the case of a placement outside of 
 96.16  the district of residence, the nonresident district must bill 
 96.17  the district of residence for the actual cost of providing the 
 96.18  instruction for the regular school year and for summer school, 
 96.19  excluding transportation costs.  When a pupil without a 
 96.20  disability is temporarily placed in a residential program 
 96.21  outside the district of residence, the administrator of the 
 96.22  court placing the pupil must send timely written notice of the 
 96.23  placement to the district of residence.  The district of 
 96.24  placement may contract with a residential facility to provide 
 96.25  instruction by teachers licensed by the state board of teaching. 
 96.26  For purposes of this section, the state correctional facilities 
 96.27  operated on a fee-for-service basis are considered to be 
 96.28  residential programs for care and treatment. 
 96.29     (e) (f) The district of residence must include the pupil in 
 96.30  its residence count of pupil units and pay tuition as provided 
 96.31  in section 123A.488 to the district providing the instruction.  
 96.32  Transportation costs must be paid by the district providing the 
 96.33  transportation and the state must pay transportation aid to that 
 96.34  district.  For purposes of computing state transportation aid, 
 96.35  pupils governed by this subdivision must be included in the 
 96.36  disabled transportation category.  
 97.1      Sec. 36.  [125A.515] [PLACEMENT OF CHILDREN WITHOUT 
 97.2   DISABILITIES; APPROVAL OF EDUCATION PROGRAM.] 
 97.3      The commissioner shall approve education programs in care 
 97.4   and treatment facilities for placement of children without 
 97.5   disabilities, including detention centers, before being licensed 
 97.6   by the department of human services or the department of 
 97.7   corrections. 
 97.8      <i>(Effective Date:  Section 36 (125A.515) is effective July</i> 
 97.9   <i>1, 2000.)</i> 
 97.10     Sec. 37.  Minnesota Statutes 1998, section 125A.52, 
 97.11  subdivision 1, is amended to read: 
 97.12     Subdivision 1.  [EDUCATIONAL SCREENING.] Secure and 
 97.13  nonsecure residential treatment facilities licensed by the 
 97.14  department of human services or the department of corrections 
 97.15  must screen each juvenile who is held in a facility for at least 
 97.16  72 hours, excluding weekends or holidays, using an educational 
 97.17  screening tool identified by the department, unless the facility 
 97.18  determines that the juvenile has a current individual education 
 97.19  plan and obtains a copy of it.  The department must develop or 
 97.20  identify an education screening tool for use in residential 
 97.21  facilities.  The tool must include a life skills development 
 97.22  component. 
 97.23     Sec. 38.  Minnesota Statutes 1998, section 125A.62, is 
 97.24  amended to read: 
 97.25     125A.62 [DUTIES OF STATE THE BOARD OF EDUCATION THE 
 97.26  MINNESOTA STATE ACADEMIES.] 
 97.27     Subdivision 1.  [GOVERNANCE.] The board of the Faribault 
 97.28  academy Minnesota state academies shall govern the state 
 97.29  academies for the deaf and the state academy for the blind.  The 
 97.30  board must promote academic standards based on high expectation 
 97.31  and an assessment system to measure academic performance toward 
 97.32  the achievement of those standards.  The board must focus on the 
 97.33  academies' needs as a whole and not prefer one school over the 
 97.34  other.  The board of the Faribault Minnesota state academies 
 97.35  shall consist of seven nine persons.  The members of the board 
 97.36  shall be appointed by the governor with the advice and consent 
 98.1   of the senate.  Three members One member must be from the 
 98.2   seven-county metropolitan area, three members one member must be 
 98.3   from greater Minnesota, and one member may be appointed at-large.
 98.4   The board must be composed of: 
 98.5      (1) one present or former superintendent of an independent 
 98.6   school district; 
 98.7      (2) one present or former special education director; 
 98.8      (3) the commissioner of children, families, and learning or 
 98.9   the commissioner's designee; 
 98.10     (4) one member of the blind community; 
 98.11     (5) one member of the deaf community; and 
 98.12     (6) two members of the general public with business, 
 98.13  administrative, or financial expertise; 
 98.14     (7) one nonvoting, unpaid ex officio member appointed by 
 98.15  the site council for the state academy for the deaf; and 
 98.16     (8) one nonvoting, unpaid ex officio member appointed by 
 98.17  the site council for the state academy for the blind. 
 98.18     Subd. 2.  [TERMS; COMPENSATION; AND OTHER.] The membership 
 98.19  terms, compensation, removal of members, and filling of 
 98.20  vacancies shall be as provided for in section 15.0575.  
 98.21  Notwithstanding section 15.0575, a member may serve not more 
 98.22  than two consecutive four-year terms. 
 98.23     Subd. 3.  [MEETINGS.] All meetings of the board shall be as 
 98.24  provided in section 471.705 and must be held in Faribault. 
 98.25     Subd. 4.  [MOST BENEFICIAL, LEAST RESTRICTIVE.] The board 
 98.26  must do what is necessary to provide the most beneficial and 
 98.27  least restrictive program of education for each pupil at the 
 98.28  academies who is handicapped by visual disability or deafness.  
 98.29     Subd. 5.  [PLANNING, EVALUATION, AND REPORTING.] To the 
 98.30  extent required in school districts, the board must establish a 
 98.31  process for the academies to include parent and community input 
 98.32  in the planning, evaluation, and reporting of curriculum and 
 98.33  pupil achievement. 
 98.34     Subd. 6.  [SITE COUNCILS.] The board may must establish, 
 98.35  and appoint members to, a site council at each academy.  The 
 98.36  site councils shall exercise power and authority granted by the 
 99.1   board.  The board must appoint to each site council the 
 99.2   exclusive representative's employee designee from each exclusive 
 99.3   representative at the academies.  The site councils may make a 
 99.4   recommendation to the governor regarding board appointments no 
 99.5   more than 30 days after receiving the list of applicants from 
 99.6   the governor. 
 99.7      Subd. 7.  [TRUSTEE OF ACADEMIES' PROPERTY.] The board is 
 99.8   the trustee of the academies' property.  Securities and money, 
 99.9   including income from the property, must be deposited in the 
 99.10  state treasury according to section 16A.275.  The deposits are 
 99.11  subject to the order of the board.  
 99.12     Subd. 8.  [GRANTS.] The board, through the chief 
 99.13  administrators of the academies, may apply for all competitive 
 99.14  grants administered by agencies of the state and other 
 99.15  government or nongovernment sources.  Application may not be 
 99.16  made for grants over which the board has discretion. 
 99.17     <i>(Effective date:  Section 38 (125A.62) is effective</i> 
 99.18  <i>December 31, 1999.)</i> 
 99.19     Sec. 39.  Minnesota Statutes 1998, section 125A.64, is 
 99.20  amended to read: 
 99.21     125A.64 [POWERS OF BOARD OF THE FARIBAULT MINNESOTA STATE 
 99.22  ACADEMIES.] 
 99.23     Subdivision 1.  [PERSONNEL.] The board of the Faribault 
 99.24  Minnesota state academies may employ central administrative 
 99.25  staff members and other personnel necessary to provide and 
 99.26  support programs and services at each academy.  
 99.27     Subd. 2.  [GET HELP FROM DEPARTMENT.] The board of the 
 99.28  Faribault Minnesota state academies may require the department 
 99.29  of children, families, and learning to provide program 
 99.30  leadership, program monitoring, and technical assistance at the 
 99.31  academies.  
 99.32     Subd. 3.  [UNCLASSIFIED POSITIONS.] The board of the 
 99.33  Faribault Minnesota state academies may place any position other 
 99.34  than residential academies administrator in the unclassified 
 99.35  service.  The position must meet the criteria in section 43A.08, 
 99.36  subdivision 1a.  
100.1      Subd. 4.  [RESIDENTIAL AND BUILDING MAINTENANCE SERVICES.] 
100.2   The board of the Faribault Minnesota state academies may enter 
100.3   into agreements with public or private agencies or institutions 
100.4   to provide residential and building maintenance services.  The 
100.5   board of the Faribault Minnesota state academies must first 
100.6   decide that contracting for the services is more efficient and 
100.7   less expensive than not contracting for them.  
100.8      Subd. 5.  [STUDENT TEACHERS AND PROFESSIONAL TRAINEES.] (a) 
100.9   The board of the Faribault Minnesota state academies may enter 
100.10  into agreements with teacher preparation institutions for 
100.11  student teachers to get practical experience at the academies.  
100.12  A licensed teacher must provide appropriate supervision of each 
100.13  student teacher.  
100.14     (b) The board of the Faribault Minnesota state academies 
100.15  may enter into agreements with accredited higher education 
100.16  institutions for certain student trainees to get practical 
100.17  experience at the academies.  The students must be preparing 
100.18  themselves in a professional field that provides special 
100.19  services to children with a disability in school programs.  To 
100.20  be a student trainee in a field, a person must have completed at 
100.21  least two years of an approved program in the field.  A person 
100.22  who is licensed or registered in the field must provide 
100.23  appropriate supervision of each student trainee.  
100.24     <i>(Effective date:  Section 39 (125A.64) is effective</i> 
100.25  <i>December 31, 1999.)</i> 
100.26     Sec. 40.  Minnesota Statutes 1998, section 125A.65, 
100.27  subdivision 3, is amended to read: 
100.28     Subd. 3.  [EDUCATIONAL PROGRAM; TUITION.] When it is 
100.29  determined pursuant to section 125A.69, subdivision 1 or 2, that 
100.30  the child is entitled to attend either school, the board of the 
100.31  Faribault Minnesota state academies must provide the appropriate 
100.32  educational program for the child.  The board of the Faribault 
100.33  Minnesota state academies must make a tuition charge to the 
100.34  child's district of residence for the cost of providing the 
100.35  program.  The amount of tuition charged must not exceed the 
100.36  basic revenue of the district for that child, for the amount of 
101.1   time the child is in the program.  For purposes of this 
101.2   subdivision, "basic revenue" has the meaning given it in section 
101.3   126C.10, subdivision 2.  The district of the child's residence 
101.4   must pay the tuition and may claim general education aid for the 
101.5   child.  Tuition received by the board of the Faribault Minnesota 
101.6   state academies, except for tuition received under subdivision 
101.7   4, must be deposited in the state treasury as provided in 
101.8   subdivision 8. 
101.9      <i>(Effective date:  Section 40 (125A.65, subdivision 3) is</i> 
101.10  <i>effective December 31, 1999.)</i> 
101.11     Sec. 41.  Minnesota Statutes 1998, section 125A.65, 
101.12  subdivision 5, is amended to read: 
101.13     Subd. 5.  [PROVIDING APPROPRIATE EDUCATIONAL PROGRAMS.] 
101.14  When it is determined that the child can benefit from public 
101.15  school enrollment but that the child should also remain in 
101.16  attendance at the applicable school, the district where the 
101.17  institution is located must provide an appropriate educational 
101.18  program for the child and must make a tuition charge to the 
101.19  board of the Faribault Minnesota state academies for the actual 
101.20  cost of providing the program, less any amount of aid received 
101.21  pursuant to section 125A.75.  The board of the Faribault 
101.22  Minnesota state academies must pay the tuition and other program 
101.23  costs including the unreimbursed transportation costs.  Aids for 
101.24  children with a disability must be paid to the district 
101.25  providing the special instruction and services.  Special 
101.26  transportation must be provided by the district providing the 
101.27  educational program and the state must reimburse that district 
101.28  within the limits provided by law.  
101.29     <i>(Effective date:  Section 41 (125A.65, subdivision 5) is</i> 
101.30  <i>effective December 31, 1999.)</i> 
101.31     Sec. 42.  Minnesota Statutes 1998, section 125A.65, 
101.32  subdivision 6, is amended to read: 
101.33     Subd. 6.  [TUITION REDUCTION.] Notwithstanding the 
101.34  provisions of subdivisions 3 and 5, the board of the Faribault 
101.35  Minnesota state academies may agree to make a tuition charge for 
101.36  less than the amount specified in subdivision 3 for pupils 
102.1   attending the applicable school who are residents of the 
102.2   district where the institution is located and who do not board 
102.3   at the institution, if that district agrees to make a tuition 
102.4   charge to the board of the Faribault Minnesota state academies 
102.5   for less than the amount specified in subdivision 5 for 
102.6   providing appropriate educational programs to pupils attending 
102.7   the applicable school. 
102.8      <i>(Effective date:  Section 42 (125A.65, subdivision 6) is</i> 
102.9   <i>effective December 31, 1999.)</i> 
102.10     Sec. 43.  Minnesota Statutes 1998, section 125A.65, 
102.11  subdivision 7, is amended to read: 
102.12     Subd. 7.  [STAFF ALLOCATION.] Notwithstanding the 
102.13  provisions of subdivisions 3 and 5, the board of the Faribault 
102.14  Minnesota state academies may agree to supply staff from the 
102.15  Minnesota state academy for the deaf and the Minnesota state 
102.16  academy for the blind to participate in the programs provided by 
102.17  the district where the institutions are located when the 
102.18  programs are provided to students in attendance at the state 
102.19  schools.  
102.20     <i>(Effective date:  Section 43 (125A.65, subdivision 7) is</i> 
102.21  <i>effective December 31, 1999.)</i> 
102.22     Sec. 44.  Minnesota Statutes 1998, section 125A.65, 
102.23  subdivision 8, is amended to read: 
102.24     Subd. 8.  [STUDENT COUNT; TUITION.] On May 1 of each year, 
102.25  the board of the Faribault Minnesota state academies shall count 
102.26  the actual number of Minnesota resident kindergarten and 
102.27  elementary students and the actual number of Minnesota resident 
102.28  secondary students enrolled and receiving education services at 
102.29  the Minnesota state academy for the deaf and the Minnesota state 
102.30  academy for the blind.  The board of the Faribault Minnesota 
102.31  state academies shall deposit in the state treasury an amount 
102.32  equal to all tuition received less:  
102.33     (1) the total number of students on May 1 less 175, times 
102.34  the ratio of the number of kindergarten and elementary students 
102.35  to the total number of students on May 1, times the general 
102.36  education formula allowance; plus 
103.1      (2) the total number of students on May 1 less 175, times 
103.2   the ratio of the number of secondary students on May 1 to the 
103.3   total number of students on May 1, times 1.3, times the general 
103.4   education formula allowance.  
103.5      <i>(Effective date:  Section 44 (125A.65, subdivision 8) is</i> 
103.6   <i>effective December 31, 1999.)</i> 
103.7      Sec. 45.  Minnesota Statutes 1998, section 125A.65, 
103.8   subdivision 10, is amended to read: 
103.9      Subd. 10.  [ANNUAL APPROPRIATION.] There is annually 
103.10  appropriated to the department for the Faribault Minnesota state 
103.11  academies the tuition amounts received and credited to the 
103.12  general operation account of the academies under this section.  
103.13  A balance in an appropriation under this paragraph does not 
103.14  cancel but is available in successive fiscal years.  
103.15     <i>(Effective date:  Section 45 (125A.65, subdivision 10) is</i> 
103.16  <i>effective December 31, 1999.)</i> 
103.17     Sec. 46.  Minnesota Statutes 1998, section 125A.68, 
103.18  subdivision 1, is amended to read: 
103.19     Subdivision 1.  [SUBJECTS.] The board of the Faribault 
103.20  Minnesota state academies must establish procedures for:  
103.21     (1) admission, including short-term admission, to the 
103.22  academies; 
103.23     (2) discharge from the academies; 
103.24     (3) decisions on a pupil's program at the academies; and 
103.25     (4) evaluation of a pupil's progress at the academies.  
103.26     <i>(Effective date:  Section 46 (125A.68, subdivision 1) is</i> 
103.27  <i>effective December 31, 1999.)</i> 
103.28     Sec. 47.  Minnesota Statutes 1998, section 125A.69, 
103.29  subdivision 1, is amended to read: 
103.30     Subdivision 1.  [TWO KINDS.] There are two kinds of 
103.31  admission to the Minnesota state academies.  
103.32     (a) A pupil who is deaf, hard of hearing, or blind-deaf, 
103.33  may be admitted to the academy for the deaf.  A pupil who is 
103.34  blind or visually impaired, blind-deaf, or multiply handicapped 
103.35  may be admitted to the academy for the blind.  For a pupil to be 
103.36  admitted, two decisions must be made under sections 125A.03 to 
104.1   125A.24 and 125A.65. 
104.2      (1) It must be decided by the individual education planning 
104.3   team that education in regular or special education classes in 
104.4   the pupil's district of residence cannot be achieved 
104.5   satisfactorily because of the nature and severity of the 
104.6   deafness or blindness or visual impairment respectively. 
104.7      (2) It must be decided by the individual education planning 
104.8   team that the academy provides the most appropriate placement 
104.9   within the least restrictive alternative for the pupil.  
104.10     (b) A deaf or hard of hearing child or a visually impaired 
104.11  pupil may be admitted to get socialization skills or on a 
104.12  short-term basis for skills development.  
104.13     <i>(Effective date:  Section 47 (125A.69, subdivision 1) is</i> 
104.14  <i>effective December 1, 1999.)</i> 
104.15     Sec. 48.  Minnesota Statutes 1998, section 125A.69, 
104.16  subdivision 3, is amended to read: 
104.17     Subd. 3.  [OUT-OF-STATE ADMISSIONS.] An applicant from 
104.18  another state who can benefit from attending either academy may 
104.19  be admitted to the academy if the admission does not prevent an 
104.20  eligible Minnesota resident from being admitted.  The state 
104.21  board of education board of the Minnesota state academies must 
104.22  obtain reimbursement from the other state for the costs of the 
104.23  out-of-state admission.  The state board may enter into an 
104.24  agreement with the appropriate authority in the other state for 
104.25  the reimbursement.  Money received from another state must be 
104.26  deposited in the general fund and credited to the general 
104.27  operating account of the academies.  The money is appropriated 
104.28  to the academies. 
104.29     <i>(Effective date:  Section 48 (125A.69, subdivision 3) is</i> 
104.30  <i>effective December 31, 1999.)</i> 
104.31     Sec. 49.  Minnesota Statutes 1998, section 125A.70, 
104.32  subdivision 2, is amended to read: 
104.33     Subd. 2.  [LOCAL SOCIAL SERVICES AGENCY.] If the person 
104.34  liable for support of a pupil cannot support the pupil, the 
104.35  local social services agency of the county of the pupil's 
104.36  residence must do so.  The commissioner of children, families, 
105.1   and learning must decide how much the local social services 
105.2   agency must pay.  The board of the Faribault Minnesota state 
105.3   academies must adopt rules that tell how the commissioner is to 
105.4   fix the amount.  The local social services agency must make the 
105.5   payment to the superintendent of the school district of 
105.6   residence.  
105.7      <i>(Effective date:  Section 49 (125A.70, subdivision 2) is</i> 
105.8   <i>effective December 31, 1999.)</i> 
105.9      Sec. 50.  Minnesota Statutes 1998, section 125A.71, 
105.10  subdivision 3, is amended to read: 
105.11     Subd. 3.  [CONTRACTS; FEES; APPROPRIATION.] The state board 
105.12  of the Minnesota state academies may enter into agreements for 
105.13  the academies to provide respite care and supplemental 
105.14  educational instruction and services including assessments and 
105.15  counseling.  The agreements may be made with public or private 
105.16  agencies or institutions, school districts, service 
105.17  cooperatives, or counties.  The board may authorize the 
105.18  academies to provide conferences, seminars, nondistrict and 
105.19  district requested technical assistance, and production of 
105.20  instructionally related materials. 
105.21     <i>(Effective date:  Section 50 (125A.71, subdivision 3) is</i> 
105.22  <i>effective December 31, 1999.)</i> 
105.23     Sec. 51.  Minnesota Statutes 1998, section 125A.72, is 
105.24  amended to read: 
105.25     125A.72 [STUDENT ACTIVITIES ACCOUNT.] 
105.26     Subdivision 1.  [STUDENT ACTIVITIES; RECEIPTS; 
105.27  APPROPRIATION.] All receipts of any kind generated to operate 
105.28  student activities, including student fees, donations and 
105.29  contributions, and gate receipts must be deposited in the state 
105.30  treasury.  The receipts are appropriated annually to the 
105.31  residential Minnesota state academies for student activities 
105.32  purposes.  They are not subject to budgetary control by the 
105.33  commissioner of finance. 
105.34     Subd. 2.  [TO STUDENT ACTIVITIES ACCOUNT.] The money 
105.35  appropriated in subdivision 1 to the residential Minnesota state 
105.36  academies for student activities must be credited to a Faribault 
106.1   Minnesota state academies' student activities account and may be 
106.2   spent only for Faribault Minnesota state academies' student 
106.3   activities purposes. 
106.4      Subd. 3.  [CARRYOVER.] An unexpended balance in the 
106.5   Faribault Minnesota state academies' student activities account 
106.6   may be carried over from the first fiscal year of the biennium 
106.7   into the second fiscal year of the biennium and from one 
106.8   biennium to the next.  The amount carried over must not be taken 
106.9   into account in determining state appropriations and must not be 
106.10  deducted from a later appropriation. 
106.11     Subd. 4.  [MONEY FROM CERTAIN STUDENT ACTIVITIES 
106.12  SPECIFICALLY INCLUDED AMONG RECEIPTS.] Any money generated by 
106.13  a Faribault Minnesota state academies' student activity that 
106.14  involves:  
106.15     (1) state employees who are receiving compensation for 
106.16  their involvement with the activity; 
106.17     (2) the use of state facilities; or 
106.18     (3) money raised for student activities in the name of the 
106.19  residential Minnesota state academies 
106.20  is specifically included among the kinds of receipts that are 
106.21  described in subdivision 1. 
106.22     <i>(Effective date:  Section 51 (125A.72) is effective</i> 
106.23  <i>December 31, 1999.)</i> 
106.24     Sec. 52.  Minnesota Statutes 1998, section 125A.73, is 
106.25  amended to read: 
106.26     125A.73 [DUTIES OF STATE DEPARTMENTS.] 
106.27     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
106.28  LEARNING.] The department of children, families, and learning 
106.29  must assist the board of the Faribault Minnesota state academies 
106.30  in preparing reports on the academies.  
106.31     Subd. 2.  [DEPARTMENT OF EMPLOYEE RELATIONS.] The 
106.32  department of employee relations, in cooperation with the board 
106.33  of the Faribault Minnesota state academies, must develop a 
106.34  statement of necessary qualifications and skills for all staff 
106.35  members of the academies. 
106.36     <i>(Effective date:  Section 52 (125A.73) is effective</i> 
107.1   <i>December 31, 1999.)</i> 
107.2      Sec. 53.  Minnesota Statutes 1998, section 125A.744, 
107.3   subdivision 3, is amended to read: 
107.4      Subd. 3.  [IMPLEMENTATION.] Consistent with section 
107.5   256B.0625, subdivision 26, school districts may enroll as 
107.6   medical assistance providers or subcontractors and bill the 
107.7   department of human services under the medical assistance fee 
107.8   for service claims processing system for special education 
107.9   services which are covered services under chapter 256B, which 
107.10  are provided in the school setting for a medical assistance 
107.11  recipient, and for whom the district has secured informed 
107.12  consent consistent with section 13.05, subdivision 4, paragraph 
107.13  (d), and section 256B.77, subdivision 2, paragraph (p), to bill 
107.14  for each type of covered service.  School districts shall be 
107.15  reimbursed by the commissioner of human services for the federal 
107.16  share of individual education plan health-related services that 
107.17  qualify for reimbursement by medical assistance.  A school 
107.18  district is not eligible to enroll as a home care provider or a 
107.19  personal care provider organization for purposes of billing home 
107.20  care services under section 256B.0627 until the commissioner of 
107.21  human services issues a bulletin instructing county public 
107.22  health nurses on how to assess for the needs of eligible 
107.23  recipients during school hours.  To use private duty nursing 
107.24  services or personal care services at school, the recipient or 
107.25  responsible party must provide written authorization in the care 
107.26  plan identifying the chosen provider and the daily amount of 
107.27  services to be used at school.  Medical assistance services for 
107.28  those enrolled in a prepaid health plan shall remain the 
107.29  responsibility of the contracted health plan subject to their 
107.30  network, credentialing, prior authorization, and determination 
107.31  of medical necessity criteria.  The commissioner of human 
107.32  services shall adjust payments to health plans to reflect 
107.33  increased costs incurred by health plans due to increased 
107.34  payments made to school districts or new payment or delivery 
107.35  arrangements developed by health plans in cooperation with 
107.36  school districts. 
108.1      <i>(Effective Date:  Section 53 (125A.744, subdivision 3) is</i> 
108.2   <i>effective July 1, 2000.)</i> 
108.3      Sec. 54.  Minnesota Statutes 1998, section 125A.75, 
108.4   subdivision 3, is amended to read: 
108.5      Subd. 3.  [FULL STATE PAYMENT.] The state must pay each 
108.6   district the actual cost incurred in providing instruction and 
108.7   services for a child with a disability whose district of 
108.8   residence has been determined by section 125A.17 or 125A.51, 
108.9   paragraph (b), and who is temporarily placed in a state 
108.10  institution or, a licensed residential facility, or foster 
108.11  facility for care and treatment.  This section does not apply to 
108.12  a child placed in a foster home or a foster group home.  The 
108.13  regular education program at the facility must be an approved 
108.14  program according to section 125A.515. 
108.15     Upon following the procedure specified by the commissioner, 
108.16  the district may bill the state the actual cost incurred in 
108.17  providing the services including transportation costs and a 
108.18  proportionate amount of capital expenditures and debt service, 
108.19  minus the amount of the basic revenue, as defined in section 
108.20  126C.10, subdivision 2, of the district for the child and the 
108.21  special education aid, transportation aid, and any other aid 
108.22  earned on behalf of the child.  The limit in subdivision 2 
108.23  applies to aid paid pursuant to this subdivision.  
108.24     To the extent possible, the commissioner shall obtain 
108.25  reimbursement from another state for the cost of serving any 
108.26  child whose parent or guardian resides in that state.  The 
108.27  commissioner may contract with the appropriate authorities of 
108.28  other states to effect reimbursement.  All money received from 
108.29  other states must be paid to the state treasury and placed in 
108.30  the general fund.  
108.31     <i>(Effective Date:  Section 54 (125A.75, subdivision 3) is</i> 
108.32  <i>effective July 1, 2000.)</i> 
108.33     Sec. 55.  Minnesota Statutes 1998, section 125A.75, 
108.34  subdivision 8, is amended to read: 
108.35     Subd. 8.  [LITIGATION AND HEARING COSTS.] (a) For fiscal 
108.36  year 1999 and thereafter, the commissioner of children, 
109.1   families, and learning, or the commissioner's designee, shall 
109.2   use state funds to pay school districts for the administrative 
109.3   costs of a due process hearing incurred under section 125A.09, 
109.4   subdivisions 6, 10, and 11, including hearing officer fees, 
109.5   court reporter fees, mileage costs, transcript 
109.6   costs, interpreter and transliterator fees, independent 
109.7   evaluations ordered by the hearing officer, and rental of 
109.8   hearing rooms, but not including district attorney fees.  To 
109.9   receive state aid under this paragraph, a school district shall 
109.10  submit to the commissioner at the end of the school year by 
109.11  August 1 an itemized list of unreimbursed actual costs for fees 
109.12  and other expenses under this paragraph incurred after June 30, 
109.13  1998, for hearings completed during the previous fiscal year.  
109.14  State funds used for aid to school districts under this 
109.15  paragraph shall be based on the unreimbursed actual costs and 
109.16  fees submitted by a district from previous school years. 
109.17     (b) For fiscal year 1999 and thereafter, a school district, 
109.18  to the extent to which it prevails under United States Code, 
109.19  title 20, section 1415(i)(3)(B)(D) and Rule 68 of the Federal 
109.20  Rules of Civil Procedure, shall receive state aid equal to 50 
109.21  percent of the total actual cost of attorney fees incurred after 
109.22  a request for a due process hearing under section 125A.09, 
109.23  subdivisions 6, 9, and 11, is served upon the parties.  A 
109.24  district is eligible for reimbursement for attorney fees under 
109.25  this paragraph only if: 
109.26     (1) a court of competent jurisdiction determines that the 
109.27  parent is not the prevailing party under United States Code, 
109.28  title 20, section 1415(i)(3)(B)(D), or the parties stipulate 
109.29  that the parent is not the prevailing party; 
109.30     (2) the district has made a good faith effort to resolve 
109.31  the dispute through mediation, but the obligation to mediate 
109.32  does not compel the district to agree to a proposal or make a 
109.33  concession; and 
109.34     (3) the district made an offer of settlement under Rule 68 
109.35  of the Federal Rules of Civil Procedure.  
109.36     To receive aid, a school district that meets the criteria 
110.1   of this paragraph shall submit to the commissioner at the end of 
110.2   the school year an itemized list of unreimbursed actual attorney 
110.3   fees associated with a due process hearing under section 
110.4   125A.09, subdivisions 6, 9, and 11.  Aid under this paragraph 
110.5   for each school district is based on unreimbursed actual 
110.6   attorney fees submitted by the district from previous school 
110.7   years. 
110.8      (c) For fiscal year 1999 and thereafter, a school district 
110.9   is eligible to receive state aid for 50 percent of the total 
110.10  actual cost of attorney fees it incurs in appealing to a court 
110.11  of competent jurisdiction the findings, conclusions, and order 
110.12  of a due process hearing under section 125A.09, subdivisions 6, 
110.13  9, and 11.  The district is eligible for reimbursement under 
110.14  this paragraph only if the commissioner authorizes the 
110.15  reimbursement after evaluating the merits of the case.  In a 
110.16  case where the commissioner is a named party in the litigation, 
110.17  the commissioner of the bureau of mediation services shall make 
110.18  the determination regarding reimbursement.  The commissioner's 
110.19  decision is final.  
110.20     (d) The commissioner shall provide districts with a form on 
110.21  which to annually report litigation costs under this section and 
110.22  shall base aid estimates on those preliminary reports submitted 
110.23  by the district during the current fiscal year. 
110.24     <i>(Effective Date:  Section 55 (125A.75, subdivision 8) is</i> 
110.25  <i>effective the day following final enactment.)</i> 
110.26     Sec. 56.  Minnesota Statutes 1998, section 125A.76, 
110.27  subdivision 1, is amended to read: 
110.28     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
110.29  section and section 125A.77, the definitions in this subdivision 
110.30  apply. 
110.31     (a) "Base year" for fiscal year 1998 and later fiscal years 
110.32  means the second fiscal year preceding the fiscal year for which 
110.33  aid will be paid. 
110.34     (b) "Basic revenue" has the meaning given it in section 
110.35  126C.10, subdivision 2.  For the purposes of computing basic 
110.36  revenue pursuant to this section, each child with a disability 
111.1   shall be counted as prescribed in section 126C.05, subdivision 1.
111.2      (c) "Essential personnel" means teachers, related services, 
111.3   and support services staff providing direct services to students.
111.4      (d) "Average daily membership" has the meaning given it in 
111.5   section 126C.05. 
111.6      (e) "Program growth factor" means 1.00 1.02 for fiscal year 
111.7   2000 2002 and later. 
111.8      (f) "Aid percentage factor" means 60 percent for fiscal 
111.9   year 1996, 70 percent for fiscal year 1997, 80 percent for 
111.10  fiscal year 1998, 90 percent for fiscal year 1999, and 100 
111.11  percent for fiscal years 2000 and later. 
111.12     (g) "Levy percentage factor" means 100 minus the aid 
111.13  percentage factor for that year. 
111.14     Sec. 57.  Minnesota Statutes 1998, section 125A.76, 
111.15  subdivision 2, is amended to read: 
111.16     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
111.17  education base revenue equals the sum of the following amounts 
111.18  computed using base year data: 
111.19     (1) 68 percent of the salary of each essential person 
111.20  employed in the district's program for children with a 
111.21  disability during the fiscal year, not including the share of 
111.22  salaries for personnel providing health-related services counted 
111.23  in clause (8), whether the person is employed by one or more 
111.24  districts or a Minnesota correctional facility operating on a 
111.25  fee-for-service basis; 
111.26     (2) for the Minnesota state academy for the deaf or the 
111.27  Minnesota state academy for the blind, 68 percent of the salary 
111.28  of each instructional aide assigned to a child attending the 
111.29  academy, if that aide is required by the child's individual 
111.30  education plan; 
111.31     (3) for special instruction and services provided to any 
111.32  pupil by contracting with public, private, or voluntary agencies 
111.33  other than school districts, in place of special instruction and 
111.34  services provided by the district, 52 percent of the difference 
111.35  between the amount of the contract and the basic revenue of the 
111.36  district for that pupil for the fraction of the school day the 
112.1   pupil receives services under the contract; 
112.2      (4) for special instruction and services provided to any 
112.3   pupil by contracting for services with public, private, or 
112.4   voluntary agencies other than school districts, that are 
112.5   supplementary to a full educational program provided by the 
112.6   school district, 52 percent of the amount of the contract for 
112.7   that pupil; 
112.8      (5) for supplies and equipment purchased or rented for use 
112.9   in the instruction of children with a disability, not including 
112.10  the portion of the expenses for supplies and equipment used to 
112.11  provide health-related services counted in clause (8), an amount 
112.12  equal to 47 percent of the sum actually expended by the 
112.13  district, or a Minnesota correctional facility operating on a 
112.14  fee-for-service basis, but not to exceed an average of $47 in 
112.15  any one school year for each child with a disability receiving 
112.16  instruction; 
112.17     (6) for fiscal years 1997 and later, special education base 
112.18  revenue shall include amounts under clauses (1) to (5) for 
112.19  special education summer programs provided during the base year 
112.20  for that fiscal year; and 
112.21     (7) for fiscal years 1999 and later, the cost of providing 
112.22  transportation services for children with disabilities under 
112.23  section 123B.92, subdivision 1, paragraph (b), clause (4); and 
112.24     (8) for fiscal years 2001 and later the cost of salaries, 
112.25  supplies and equipment, and other related costs actually 
112.26  expended by the district for the nonfederal share of medical 
112.27  assistance services according to section 256B.0625, subdivision 
112.28  26. 
112.29     (b) If requested by a school district operating a special 
112.30  education program during the base year for less than the full 
112.31  fiscal year, or a school district in which is located a 
112.32  Minnesota correctional facility operating on a fee-for-service 
112.33  basis for less than the full fiscal year, the commissioner may 
112.34  adjust the base revenue to reflect the expenditures that would 
112.35  have occurred during the base year had the program been operated 
112.36  for the full fiscal year. 
113.1      (c) Notwithstanding paragraphs (a) and (b), the portion of 
113.2   a school district's base revenue attributable to a Minnesota 
113.3   correctional facility operating on a fee-for-service basis 
113.4   during the facility's first year of operating on a 
113.5   fee-for-service basis shall be computed using current year data. 
113.6      <i>(Effective Date:  Section 57 (125A.76, subdivision 2) is</i> 
113.7   <i>effective July 1, 2000).</i> 
113.8      Sec. 58.  Minnesota Statutes 1998, section 125A.76, 
113.9   subdivision 4, is amended to read: 
113.10     Subd. 4.  [STATE TOTAL SPECIAL EDUCATION REVENUE AID.] The 
113.11  state total special education revenue aid for fiscal year 1998 
113.12  2000 equals $358,542,000 $436,834,000.  The state total special 
113.13  education revenue aid for fiscal year 1999 2001 equals 
113.14  $435,322,000 $436,834,000.  The state total special 
113.15  education revenue aid for later fiscal years equals:  
113.16     (1) the state total special education revenue aid for the 
113.17  preceding fiscal year; times 
113.18     (2) the program growth factor; times 
113.19     (3) the ratio of the state total average daily membership 
113.20  for the current fiscal year to the state total average daily 
113.21  membership for the preceding fiscal year. 
113.22     Sec. 59.  Minnesota Statutes 1998, section 125A.76, 
113.23  subdivision 5, is amended to read: 
113.24     Subd. 5.  [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE AID.] 
113.25  (a) A school district's special education revenue aid for fiscal 
113.26  year 1996 2000 and later equals the state total special 
113.27  education revenue aid, minus the amount determined 
113.28  under paragraph paragraphs (b) and (c), times the ratio of the 
113.29  district's adjusted special education base revenue to the state 
113.30  total adjusted special education base revenue.  If the state 
113.31  board of education modifies its rules for special education in a 
113.32  manner that increases a district's special education obligations 
113.33  or service requirements, the commissioner shall annually 
113.34  increase each district's special education revenue aid by the 
113.35  amount necessary to compensate for the increased service 
113.36  requirements.  The additional revenue aid equals the cost in the 
114.1   current year attributable to rule changes not reflected in the 
114.2   computation of special education base revenue, multiplied by the 
114.3   appropriate percentages from subdivision 2. 
114.4      (b) Notwithstanding paragraph (a), if the special education 
114.5   base revenue for a district equals zero, the special education 
114.6   revenue aid equals the amount computed according to subdivision 
114.7   2 using current year data. 
114.8      (c) Notwithstanding paragraphs (a) and (b), if the special 
114.9   education base revenue for a district is greater than zero, and 
114.10  the base year amount for the district under subdivision 2, 
114.11  paragraph (a), clause (7), equals zero, the special education 
114.12  revenue aid equals the sum of the amount computed according to 
114.13  paragraph (a), plus the amount computed according to subdivision 
114.14  2, paragraph (a), clause (7), using current year data. 
114.15     Sec. 60.  Minnesota Statutes 1998, section 125A.79, 
114.16  subdivision 1, is amended to read: 
114.17     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
114.18  section, the definitions in this subdivision apply. 
114.19     (a) "Unreimbursed special education cost" means the sum of 
114.20  the following: 
114.21     (1) expenditures for teachers' salaries, contracted 
114.22  services, supplies, equipment, and transportation services 
114.23  eligible for revenue under section 125A.76; plus 
114.24     (2) expenditures for tuition bills received under sections 
114.25  125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
114.26  under sections 125A.76, subdivision 2, and 124.3202, subdivision 
114.27  1; minus 
114.28     (3) revenue for teachers' salaries, contracted services, 
114.29  supplies, and equipment under sections 124.3202 and 124A.76; 
114.30  minus 
114.31     (4) tuition receipts under sections 125A.03 to 125A.24 and 
114.32  125A.65 for services eligible for revenue under sections 
114.33  124.3202, subdivision 1, and 124A.76, subdivision 2. 
114.34     (b) "General revenue" means for fiscal year 1996, the sum 
114.35  of the general education revenue according to section 126C.10, 
114.36  subdivision 1, as adjusted according to section 127A.47, 
115.1   subdivision 7, plus the total referendum revenue according to 
115.2   section 126C.17, subdivision 4.  For fiscal years 1997 and 
115.3   later, "general revenue" means the sum of the general education 
115.4   revenue according to section 126C.10, subdivision 1, as adjusted 
115.5   according to section 127A.47, subdivision subdivisions 7 and 8, 
115.6   plus the total referendum revenue minus transportation sparsity 
115.7   revenue minus total operating capital revenue. 
115.8      (c) "Average daily membership" has the meaning given it in 
115.9   section 126C.05. 
115.10     (d) "Program growth factor" means 1.044 for fiscal year 
115.11  2002 and 1.02 for fiscal year 2003 and later. 
115.12     Sec. 61.  Minnesota Statutes 1998, section 125A.79, 
115.13  subdivision 2, is amended to read: 
115.14     Subd. 2.  [EXCESS COST REVENUE AID, FISCAL YEARS 2000 AND 
115.15  2001.] For 1997 and later fiscal years 2000 and 2001, a 
115.16  district's special education excess cost revenue aid equals the 
115.17  greatest of: 
115.18     (a) 70 80 percent of the difference between (1) the 
115.19  district's unreimbursed special education cost and (2) 5.7 5.2 
115.20  percent for fiscal year 1997 and later years of the district's 
115.21  general revenue; 
115.22     (b) 70 percent of the difference between (1) the increase 
115.23  in the district's unreimbursed special education cost between 
115.24  the base year as defined in section 125A.76, subdivision 1, and 
115.25  the current year and (2) 1.6 percent of the district's general 
115.26  revenue; or 
115.27     (c) zero. 
115.28     Sec. 62.  Minnesota Statutes 1998, section 125A.79, 
115.29  subdivision 4, is amended to read: 
115.30     Subd. 4.  [TUITION.] Notwithstanding sections 125A.03 to 
115.31  125A.24 and 125A.65, for children who are nonresidents of 
115.32  Minnesota, receive services under section 125A.76, subdivisions 
115.33  1 and 2, and are placed in the serving school district by court 
115.34  action, and are from a state that does not have a reciprocity 
115.35  agreement with the commissioner under section 125A.115, the 
115.36  serving school district shall submit unreimbursed tuition bills 
116.1   for eligible services to the department of children, families, 
116.2   and learning instead of the resident school district.  To be 
116.3   eligible for reimbursement, the serving school district, as part 
116.4   of its child intake procedures, must demonstrate good faith 
116.5   effort to obtain from the placing agency a financial commitment 
116.6   to pay tuition costs.  The state shall not reimburse school 
116.7   districts under this section if there is a special education 
116.8   reciprocity agreement under section 125A.115 with the state of 
116.9   which the student is a resident.  
116.10     <i>(Effective Date:  Section 62 (125A.79, subdivision 4) is</i> 
116.11  <i>effective July 1, 2000.)</i> 
116.12     Sec. 63.  Minnesota Statutes 1998, section 125A.79, is 
116.13  amended by adding a subdivision to read: 
116.14     Subd. 5.  [INITIAL EXCESS COST AID.] For fiscal years 2002 
116.15  and later, a district's initial excess cost aid equals the 
116.16  greatest of: 
116.17     (1) 80 percent of the difference between (i) the district's 
116.18  unreimbursed special education cost and (ii) 5.2 percent of the 
116.19  district's general revenue; 
116.20     (2) 70 percent of the difference between (i) the increase 
116.21  in the district's unreimbursed special education cost between 
116.22  the base year as defined in section 125A.76, subdivision 1, and 
116.23  the current year and (ii) 1.6 percent of the district's general 
116.24  revenue; or 
116.25     (3) zero. 
116.26     Sec. 64.  Minnesota Statutes 1998, section 125A.79, is 
116.27  amended by adding a subdivision to read: 
116.28     Subd. 6.  [STATE TOTAL SPECIAL EDUCATION EXCESS COST 
116.29  AID.] The state total special education excess cost aid for 
116.30  fiscal year 2002 and later fiscal years equals: 
116.31     (1) the state total special education excess cost aid for 
116.32  the preceding fiscal year; times 
116.33     (2) the program growth factor; times 
116.34     (3) the ratio of the state total average daily membership 
116.35  for the current fiscal year to the state total average daily 
116.36  membership for the preceding fiscal year. 
117.1      Sec. 65.  Minnesota Statutes 1998, section 125A.79, is 
117.2   amended by adding a subdivision to read: 
117.3      Subd. 7.  [DISTRICT SPECIAL EDUCATION EXCESS COST AID.] A 
117.4   district's special education excess cost aid for fiscal year 
117.5   2002 and later equals the state total special education excess 
117.6   cost aid times the ratio of the district's initial excess cost 
117.7   aid to the state total initial excess cost aid. 
117.8      Sec. 66.  Minnesota Statutes 1998, section 125A.79, is 
117.9   amended by adding a subdivision to read: 
117.10     Subd. 8.  [OUT-OF-STATE TUITION.] For children who are 
117.11  residents of the state, receive services under section 125A.76, 
117.12  subdivisions 1 and 2, and are placed in a care and treatment 
117.13  facility by court action in a state that does not have a 
117.14  reciprocity agreement with the commissioner under section 
117.15  125A.115, the resident school district shall submit the balance 
117.16  of the tuition bills, minus the amount of the basic revenue, as 
117.17  defined by section 126C.10, subdivision 2, of the district for 
117.18  the child and the special education aid, and any other aid 
117.19  earned on behalf of the child. 
117.20     <i>(Effective Date:  Section 66 (125A.79, subdivision 8) is</i> 
117.21  <i>effective July 1, 2000.)</i> 
117.22     Sec. 67.  [125A.80] [UNIFORM BILLING SYSTEM FOR THE 
117.23  EDUCATION COSTS OF OUT-OF-HOME PLACED STUDENTS.] 
117.24     The commissioner shall implement a uniform billing system 
117.25  for school districts and other agencies, including private 
117.26  providers, who provide the educational services for students who 
117.27  are placed out of the home.  The uniform billing system must: 
117.28     (1) allow for the proper and timely billing to districts by 
117.29  service providers with a minimum amount of district 
117.30  administration; 
117.31     (2) allow districts to bill the state for certain types of 
117.32  special education and regular education services as provided by 
117.33  law; 
117.34     (3) provide flexibility for the types of services that are 
117.35  provided for children placed out of the home, including day 
117.36  treatment services; 
118.1      (4) allow the commissioner to track the type, cost, and 
118.2   quality of services provided for children placed out of the 
118.3   home; 
118.4      (5) conform existing special education and proposed regular 
118.5   education billing procedures; 
118.6      (6) provide a uniform reporting standard of per diem rates; 
118.7      (7) determine allowable expenses and maximum reimbursement 
118.8   rates for the state reimbursement of care and treatment services 
118.9   according to section 124D.701; and 
118.10     (8) provide a process for the district to appeal to the 
118.11  commissioner tuition bills submitted to districts and to the 
118.12  state. 
118.13     Sec. 68.  Minnesota Statutes 1998, section 126C.44, is 
118.14  amended to read: 
118.15     126C.44 [CRIME-RELATED COSTS LEVY.] 
118.16     For taxes levied in 1991 and subsequent years, payable in 
118.17  1992 and subsequent years, Each district may make a levy on all 
118.18  taxable property located within the district for the purposes 
118.19  specified in this subdivision.  The maximum amount which may be 
118.20  levied for all costs under this subdivision shall be equal to 
118.21  $1.50 $2 multiplied by the population of the school district. 
118.22  For purposes of this subdivision, "population" of the school 
118.23  district means the same as contained in section 275.14.  The 
118.24  proceeds of the levy must be used for directly funding the 
118.25  following purposes or for reimbursing the cities and counties 
118.26  who contract with the district for the following purposes:  (1) 
118.27  to pay the costs incurred for the salaries, benefits, and 
118.28  transportation costs of peace officers and sheriffs for liaison 
118.29  services in the district's middle and secondary schools; (2) to 
118.30  pay the costs for a drug abuse prevention program as defined in 
118.31  Minnesota Statutes 1991 Supplement, section 609.101, subdivision 
118.32  3, paragraph (f), in the elementary schools; or (3) to pay the 
118.33  costs for a gang resistance education training curriculum in the 
118.34  middle schools; or (4) to pay the costs for other crime 
118.35  prevention and drug abuse and violence prevention measures taken 
118.36  by the school district.  The district must initially attempt to 
119.1   contract for these services to be provided by peace officers or 
119.2   sheriffs with the police department of each city or the 
119.3   sheriff's department of the county within the district 
119.4   containing the school receiving the services.  If a local police 
119.5   department or a county sheriff's department does not wish to 
119.6   provide the necessary services, the district may contract for 
119.7   these services with any other police or sheriff's department 
119.8   located entirely or partially within the school district's 
119.9   boundaries.  The levy authorized under this subdivision is not 
119.10  included in determining the school district's levy limitations. 
119.11     Sec. 69.  [127A.11] [MONITOR MEDICAL ASSISTANCE SERVICES 
119.12  FOR DISABLED STUDENTS.] 
119.13     The commissioner of children, families, and learning, in 
119.14  cooperation with the commissioner of human services, shall 
119.15  monitor the costs of health-related, special education services 
119.16  provided by public schools. 
119.17     <i>(Effective Date:  Section 69 (127A.11) is effective July 1,</i> 
119.18  <i>2000.)</i> 
119.19     Sec. 70.  Minnesota Statutes 1998, section 127A.47, 
119.20  subdivision 2, is amended to read: 
119.21     Subd. 2.  [REPORTING; REVENUE FOR HOMELESS.] For all school 
119.22  purposes, unless otherwise specifically provided by law, a 
119.23  homeless pupil is a resident of the school district in which the 
119.24  homeless shelter or other program, center, or facility assisting 
119.25  the homeless pupil or the pupil's family is located that enrolls 
119.26  the pupil. 
119.27     Sec. 71.  Minnesota Statutes 1998, section 241.021, 
119.28  subdivision 1, is amended to read: 
119.29     Subdivision 1.  [SUPERVISION OVER CORRECTIONAL 
119.30  INSTITUTIONS.] (1) The commissioner of corrections shall inspect 
119.31  and license all correctional facilities throughout the state, 
119.32  whether public or private, established and operated for the 
119.33  detention and confinement of persons detained or confined 
119.34  therein according to law except to the extent that they are 
119.35  inspected or licensed by other state regulating agencies.  The 
119.36  commissioner shall promulgate pursuant to chapter 14, rules 
120.1   establishing minimum standards for these facilities with respect 
120.2   to their management, operation, physical condition, and the 
120.3   security, safety, health, treatment, and discipline of persons 
120.4   detained or confined therein.  Commencing September 1, 1980, no 
120.5   individual, corporation, partnership, voluntary association, or 
120.6   other private organization legally responsible for the operation 
120.7   of a correctional facility may operate the facility unless 
120.8   licensed by the commissioner of corrections.  The commissioner 
120.9   shall review the correctional facilities described in this 
120.10  subdivision at least once every biennium, except as otherwise 
120.11  provided herein, to determine compliance with the minimum 
120.12  standards established pursuant to this subdivision.  The 
120.13  commissioner shall grant a license to any facility found to 
120.14  conform to minimum standards or to any facility which, in the 
120.15  commissioner's judgment, is making satisfactory progress toward 
120.16  substantial conformity and the interests and well-being of the 
120.17  persons detained or confined therein are protected.  The 
120.18  commissioner may grant licensure up to two years.  The 
120.19  commissioner shall have access to the buildings, grounds, books, 
120.20  records, staff, and to persons detained or confined in these 
120.21  facilities.  The commissioner may require the officers in charge 
120.22  of these facilities to furnish all information and statistics 
120.23  the commissioner deems necessary, at a time and place designated 
120.24  by the commissioner.  The commissioner may require that any or 
120.25  all such information be provided through the department of 
120.26  corrections detention information system.  The education program 
120.27  offered in a correctional facility for the detention or 
120.28  confinement of juvenile offenders must be approved by the 
120.29  commissioner of children, families, and learning before the 
120.30  commissioner of corrections may grant a license to the facility. 
120.31     (2) Any state agency which regulates, inspects, or licenses 
120.32  certain aspects of correctional facilities shall, insofar as is 
120.33  possible, ensure that the minimum standards it requires are 
120.34  substantially the same as those required by other state agencies 
120.35  which regulate, inspect, or license the same aspects of similar 
120.36  types of correctional facilities, although at different 
121.1   correctional facilities. 
121.2      (3) Nothing in this section shall be construed to limit the 
121.3   commissioner of corrections' authority to promulgate rules 
121.4   establishing standards of eligibility for counties to receive 
121.5   funds under sections 401.01 to 401.16, or to require counties to 
121.6   comply with operating standards the commissioner establishes as 
121.7   a condition precedent for counties to receive that funding. 
121.8      (4) When the commissioner finds that any facility described 
121.9   in clause (1), except foster care facilities for delinquent 
121.10  children and youth as provided in subdivision 2, does not 
121.11  substantially conform to the minimum standards established by 
121.12  the commissioner and is not making satisfactory progress toward 
121.13  substantial conformance, the commissioner shall promptly notify 
121.14  the chief executive officer and the governing board of the 
121.15  facility of the deficiencies and order that they be remedied 
121.16  within a reasonable period of time.  The commissioner may by 
121.17  written order restrict the use of any facility which does not 
121.18  substantially conform to minimum standards to prohibit the 
121.19  detention of any person therein for more than 72 hours at one 
121.20  time.  When, after due notice and hearing, the commissioner 
121.21  finds that any facility described in this subdivision, except 
121.22  county jails and lockups as provided in sections 641.26, 642.10, 
121.23  and 642.11, does not conform to minimum standards, or is not 
121.24  making satisfactory progress toward substantial compliance 
121.25  therewith, the commissioner may issue an order revoking the 
121.26  license of that facility.  After revocation of its license, that 
121.27  facility shall not be used until its license is renewed.  When 
121.28  the commissioner is satisfied that satisfactory progress towards 
121.29  substantial compliance with minimum standard is being made, the 
121.30  commissioner may, at the request of the appropriate officials of 
121.31  the affected facility supported by a written schedule for 
121.32  compliance, grant an extension of time for a period not to 
121.33  exceed one year. 
121.34     (5) As used in this subdivision, "correctional facility" 
121.35  means any facility, including a group home, having a residential 
121.36  component, the primary purpose of which is to serve persons 
122.1   placed therein by a court, court services department, parole 
122.2   authority, or other correctional agency having dispositional 
122.3   power over persons charged with, convicted, or adjudicated to be 
122.4   guilty or delinquent. 
122.5      <i>(Effective Date:  Section 71 (241.021, subdivision 1) is</i> 
122.6   <i>effective July 1, 2000.)</i> 
122.7      Sec. 72.  Minnesota Statutes 1998, section 245A.04, is 
122.8   amended by adding a subdivision to read: 
122.9      Subd. 11.  [EDUCATION PROGRAM; ADDITIONAL REQUIREMENT.] The 
122.10  education program offered in a residential or nonresidential 
122.11  program, except for child care, foster care, or services for 
122.12  adults, must be approved by the commissioner of children, 
122.13  families, and learning before the commissioner of human services 
122.14  may grant a license to the program. 
122.15     <i>(Effective Date:  Section 72 (245.04, subdivision 11) is</i> 
122.16  <i>effective July 1, 2000).</i> 
122.17     Sec. 73.  Laws 1993, chapter 224, article 3, section 32, as 
122.18  amended by Laws 1998, chapter 398, article 2, section 47, is 
122.19  amended to read: 
122.20     Sec. 32.  [ASL GUIDELINES.] 
122.21     (a) In determining appropriate licensure requirements for 
122.22  teachers of deaf and hard of hearing students under Minnesota 
122.23  Statutes, section 125.189 122A.28, subdivision 1, the board of 
122.24  teaching shall develop the requirements according to the 
122.25  guidelines described in this section. 
122.26     (b) Each teacher must complete the American sign language 
122.27  sign communication proficiency interview or a comparable 
122.28  American sign language evaluation that the board of teaching, 
122.29  the Minnesota association of deaf citizens, and the Minnesota 
122.30  council for the hearing impaired accept as a means for 
122.31  establishing the teacher's baseline level of American sign 
122.32  language skills.  A teacher shall not be charged for this 
122.33  evaluation. 
122.34     (c) Each teacher must complete 60 continuing education 
122.35  credits in American sign language, American sign language 
122.36  linguistics, or deaf culture for every 120 continuing education 
123.1   credits the teacher is required to complete to renew a teaching 
123.2   license. 
123.3      (d) In order to obtain an initial license to teach deaf and 
123.4   hard of hearing students, or to apply for a Minnesota teaching 
123.5   license, after being licensed to teach in another state, a 
123.6   person must demonstrate in the sign communication proficiency 
123.7   interview an intermediate plus level of proficiency in American 
123.8   sign language. 
123.9      (e) Each teacher applying to renew a teaching license must 
123.10  take the American sign language sign communication proficiency 
123.11  interview or a comparable American sign language evaluation 
123.12  every five years until the teacher demonstrates a minimum, or 
123.13  survival plus, level of proficiency in American sign language. 
123.14     (f) A teacher working directly with students whose primary 
123.15  language is American sign language should demonstrate at least 
123.16  an advanced level of proficiency in American sign language.  The 
123.17  board should not consider a minimum, or survival plus, level of 
123.18  proficiency adequate for providing direct instruction to 
123.19  students whose primary language is American sign language. 
123.20     (g) To renew a teaching license, a teacher must comply with 
123.21  paragraphs (c) and (e) in addition to other applicable board 
123.22  requirements.  A teacher's ability to demonstrate a minimum, or 
123.23  survival plus, level of proficiency in American sign language is 
123.24  not a condition for renewing the teacher's license. 
123.25     (h) A teacher who demonstrates an increased proficiency in 
123.26  American sign language skill in the American sign language sign 
123.27  communication proficiency interview or a comparable American 
123.28  sign language evaluation shall receive credit toward completing 
123.29  the requirements of paragraph (c).  The number of continuing 
123.30  education credits the teacher receives is based on the teacher's 
123.31  increased level of proficiency from the teacher's baseline level:
123.32     (1) 35 continuing education credits for demonstrating an 
123.33  intermediate level of proficiency; 
123.34     (2) 40 continuing education credits for demonstrating an 
123.35  intermediate plus level of proficiency; 
123.36     (3) 45 continuing education credits for demonstrating an 
124.1   advanced level of proficiency; 
124.2      (4) 50 continuing education credits for demonstrating an 
124.3   advanced plus level of proficiency; 
124.4      (5) 55 continuing education credits for demonstrating a 
124.5   superior level of proficiency; and 
124.6      (6) 60 continuing education credits for demonstrating a 
124.7   superior plus level of proficiency. 
124.8      (i) This section shall not apply to teachers of oral/aural 
124.9   deaf education. 
124.10     Sec. 74.  Laws 1997, First Special Session chapter 4, 
124.11  article 2, section 48, is amended to read: 
124.12     Sec. 48.  [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 
124.13  HOMELESS CHILDREN.] 
124.14     A school district or a nonprofit entity contracting with a 
124.15  school district to provide education and transition services for 
124.16  homeless children is eligible for a matching grant for capital 
124.17  facilities which serve homeless children and their families.  
124.18  Grant proceeds may be used to design, furnish, equip, acquire, 
124.19  repair, or construct a facility for providing education and 
124.20  transition services for homeless pupils.  To obtain a grant, a 
124.21  school district or nonprofit entity must submit an application 
124.22  to the commissioner of children, families, and learning in the 
124.23  form and manner the commissioner establishes.  Grants must be 
124.24  matched by $1 of nonstate money for every $1 $2 of grant money 
124.25  received.  The commissioner shall take into consideration the 
124.26  number of concentration of homeless children served by a school 
124.27  district when awarding grants.  The commissioner may award 
124.28  matching grants of up to $500,000 per school district. 
124.29     Sec. 75.  Laws 1997, First Special Session chapter 4, 
124.30  article 2, section 51, subdivision 29, as amended by Laws 1998, 
124.31  chapter 398, article 2, section 52, is amended to read: 
124.32     Subd. 29.  [FIRST GRADE PREPAREDNESS.] (a) For grants for 
124.33  the first grade preparedness program under Minnesota Statutes, 
124.34  section 124.2613, and for school sites that have provided a 
124.35  full-day kindergarten option for kindergarten students enrolled 
124.36  in fiscal years 1996 and 1997: 
125.1        $5,000,000     .....     1998 
125.2        $6,500,000     .....     1999 
125.3      (b) $4,200,000 in fiscal year 1998 must be distributed 
125.4   according to Minnesota Statutes, section 124.2613, subdivision 
125.5   3, and $4,200,000 in fiscal year 1999 must be distributed 
125.6   according to Minnesota Statutes, section 124D.081, subdivision 3.
125.7      (c) $800,000 in fiscal year 1998 must be divided equally 
125.8   among the four geographic regions defined in Minnesota Statutes, 
125.9   section 124.2613, subdivision 3, and $800,000 in fiscal year 
125.10  1999 must be divided equally among the four geographic regions 
125.11  defined in Minnesota Statutes, section 124D.081, subdivision 3, 
125.12  and must first be used to provide funding for school sites that 
125.13  offered an optional full-day kindergarten program during the 
125.14  1996-1997 school year, but did not receive funding for fiscal 
125.15  year 1997 under Minnesota Statutes, section 124.2613.  To be a 
125.16  qualified site, licensed teachers must have taught the optional 
125.17  full-day kindergarten classes.  A district that charged a fee 
125.18  for students participating in an optional full-day program is 
125.19  eligible to receive the grant to provide full-day kindergarten 
125.20  for all students as required by Minnesota Statutes, section 
125.21  124.2613 124D.08, subdivision 4.  Districts with eligible sites 
125.22  must apply to the commissioner of children, families, and 
125.23  learning for a grant. 
125.24     (c) This appropriation must first be used to fund programs 
125.25  operating during the 1996-1997 school year under paragraph (b) 
125.26  and Minnesota Statutes, section 124.2613.  Any remaining funds 
125.27  may be used to expand the number of sites providing first grade 
125.28  preparedness programs according to Minnesota Statutes, section 
125.29  124D.081, subdivision 3. 
125.30     (d) $1,500,000 in fiscal year 1999 shall be divided equally 
125.31  among the four geographic regions defined in Minnesota Statutes, 
125.32  section 124D.081, subdivision 3, and must first be used to 
125.33  eliminate aid proration for sites qualifying under paragraphs 
125.34  (b) and (c).  Any remaining funds may be used to expand the 
125.35  number of sites providing first grade preparedness programs 
125.36  according to Minnesota Statutes, section 124.2613, subdivision 3.
126.1      <i>(Effective Date:  Section 75 (Laws 1997, First Special</i> 
126.2   <i>Session chapter 4, article 2, section 51, subdivision 29) is</i> 
126.3   <i>effective the day following final enactment.)</i> 
126.4      Sec. 76.  Laws 1998, chapter 398, article 2, section 53, is 
126.5   amended to read: 
126.6      Sec. 53.  [RULES AFFECTING SPECIAL EDUCATION INSTRUCTION 
126.7   AND SERVICES.] 
126.8      (a) The state board of education must shall amend all the 
126.9   rules in paragraph (c) relating to providing special instruction 
126.10  and services to children with a disability so that the rules do 
126.11  not impose requirements that exceed federal law.  Consistent 
126.12  with the report from the commissioner to compare federal and 
126.13  state special education law, the state board may use the 
126.14  expedited process under Minnesota Statutes 1997, section 14.389, 
126.15  to amend these rules. 
126.16     (b) As of July 1, 1999, any the rules in paragraph (c) 
126.17  relating to providing special instruction and services to 
126.18  children with a disability are invalid to the extent they exceed 
126.19  the requirements in federal law unless a law is enacted before 
126.20  July 1, 1999, indicating the intent of the state to exceed one 
126.21  or more federal requirements. 
126.22     (c) The state board shall amend the following rules 
126.23  according to this section:  Minnesota Rules, parts 3525.0200; 
126.24  3525.0550; 3525.1100, subpart 2, item D; 3525.1329; 3525.2325; 
126.25  3525.2385; 3525.2470; 3525.2550; 3525.2750; 3525.2900; 
126.26  3525.3300; and 3525.3700. 
126.27     Sec. 77.  [DESIGN AND IMPLEMENTATION OF UNIFORM BILLING 
126.28  SYSTEM.] 
126.29     The commissioner of children, families, and learning shall 
126.30  design a uniform billing system according to Minnesota Statutes, 
126.31  section 125A.80.  In designing a system, the commissioner shall 
126.32  seek the input from the appropriate users of the billing system. 
126.33     The commissioner shall implement a uniform billing system 
126.34  for education services for children placed out of the home, 
126.35  according to Minnesota Statutes, section 125A.80, by July 1, 
126.36  2000.  The commissioner shall provide training to school 
127.1   districts on the uniform billing system. 
127.2      Sec. 78.  [COMMUNITY INTERVENTION AND PREVENTION GRANTS.] 
127.3      Subdivision 1.  [GRANT PROGRAM.] The commissioner of 
127.4   children, families, and learning shall establish a community 
127.5   intervention and prevention grant program for fiscal year 2000 
127.6   for grants to nonprofit organizations, school districts or 
127.7   school sites, or other community groups to provide 
127.8   education-related services to at-risk children and their 
127.9   families.  Grants are available to programs that: 
127.10     (1) enhance youth outreach services and link children to 
127.11  activities, programs, and clubs outside of the regular school 
127.12  day or year; 
127.13     (2) create partnerships between culturally based community 
127.14  organizations, parents, and school sites; 
127.15     (3) provide parent and community support for families with 
127.16  deaf or hard-of-hearing children; 
127.17     (4) provide mentoring, tutoring, and early education 
127.18  development for at-risk children, children who speak English as 
127.19  a second language, or children with disabilities; 
127.20     (5) provide services to children and their families who 
127.21  require case management and counseling services due to 
127.22  educational barriers related to economics, language, 
127.23  transportation, illness, isolation, or disability; 
127.24     (6) designate an individual teacher to provide family 
127.25  connection services for children that emphasizes each individual 
127.26  child's unique learning and development needs; 
127.27     (7) establish community-based education programs through a 
127.28  collaboration of the local school district, city, and 
127.29  community-based organizations; or 
127.30     (8) assist newly arrived immigrants ages 12 to 24 in 
127.31  becoming literate and acquiring vocational skills. 
127.32     Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
127.33  school or school district, a nonprofit community-based 
127.34  organization, a city, or a collaboration of one or more of these 
127.35  groups. 
127.36     Subd. 3.  [APPLICATION PROCESS.] To obtain a grant, an 
128.1   applicant must submit an application to the commissioner in the 
128.2   form and manner established by the commissioner.  The 
128.3   application must describe how the applicant will meet one or 
128.4   more of the outcomes described in subdivision 1. 
128.5      Subd. 4.  [GRANT AWARDS.] The commissioner may award grants 
128.6   to applicants who meet the requirements of this section.  The 
128.7   commissioner must base the amount of the grant on the number of 
128.8   children and families expected to participate in the program. 
128.9      Sec. 79.  [RECOMMENDATIONS FOR A SYSTEM TO APPROVE 
128.10  EDUCATION PROGRAMS SERVING CHILDREN AT CARE AND TREATMENT 
128.11  FACILITIES.] 
128.12     Subdivision 1.  [TASK FORCE MEMBERSHIP.] The commissioner 
128.13  of children, families, and learning shall convene a task force 
128.14  to make recommendations on a system to approve education 
128.15  programs serving children at care and treatment facilities, 
128.16  including detention facilities.  The task force shall be chaired 
128.17  by a representative of the department of children, families, and 
128.18  learning and, at a minimum, must include representatives from 
128.19  each of the following organizations:  the department of human 
128.20  services, the department of corrections, the Minnesota school 
128.21  boards association, the Minnesota association of school 
128.22  administrators, Education Minnesota, association of Minnesota 
128.23  counties, Minnesota county attorney association, conference of 
128.24  chief judges, and the Minnesota council of child caring agencies.
128.25     By February 1, 2000, the commissioner shall submit the task 
128.26  force's recommendations to the education committees of the 
128.27  legislature.  The task force sunsets on February 1, 2000.  
128.28     Subd. 2.  [RECOMMENDATIONS TO THE COMMISSIONER OF CHILDREN, 
128.29  FAMILIES, AND LEARNING.] The task force shall consider the 
128.30  following in making recommendations to the department of 
128.31  children, families, and learning to implement a system to 
128.32  approve education programs serving children at care and 
128.33  treatment facilities, including detention facilities: 
128.34     (1) minimal education standards consistent with state 
128.35  graduation requirements that meet the individual needs of 
128.36  children ages 6 to 21 served at care and treatment facilities, 
129.1   unless the child has withdrawn from school or has received a 
129.2   diploma; 
129.3      (2) minimal average daily hour of education instruction; 
129.4      (3) that state-approved education programs will employ or 
129.5   contract with licensed teachers or community experts as defined 
129.6   by the state board of teaching; 
129.7      (4) how the education program will work together with the 
129.8   district that the facility is located in and the district of 
129.9   residence to provide or contract for education services when 
129.10  possible; 
129.11     (5) uniform educational assessment and screening procedures 
129.12  to be used at the care and treatment facility before the child's 
129.13  educational program can begin; 
129.14     (6) that educational plans, based on the assessment of the 
129.15  child, will be used to determine the educational services for 
129.16  the child placed in a care and treatment facility; 
129.17     (7) appropriate and consistent educational services to be 
129.18  implemented related to the type of facility and placement of the 
129.19  child; 
129.20     (8) the level of monitoring and enforcement by the 
129.21  department of children, families, and learning to ensure the 
129.22  necessary oversight of the educational program; 
129.23     (9) uniform procedures for transferring student records, 
129.24  which are consistent with state and federal data practices laws; 
129.25     (10) how the educational needs of the child will be 
129.26  considered in the placement of the child; 
129.27     (11) appropriate timelines for the department of children, 
129.28  families, and learning to approve initial and continuing 
129.29  education programs; and 
129.30     (12) whether separate requirements are needed for 
129.31  facilities that provide education services through the school 
129.32  district and for facilities that provide educational services 
129.33  without the assistance of a school district. 
129.34     Sec. 80.  [COMMISSIONER TO RECOMMEND OPTIONS ON SPECIAL 
129.35  EDUCATION FUNDING FORMULAS.] 
129.36     The commissioner of children, families, and learning shall 
130.1   make recommendations to the legislature about different options 
130.2   for a pupil-based special education funding formula.  The 
130.3   commissioner shall consult with special education stake-holders 
130.4   and with other states that have adopted a pupil-based special 
130.5   education funding formula.  The commissioner shall consider the 
130.6   following in examining a pupil-based special education funding 
130.7   formula that: 
130.8      (1) minimizes the distributional effect of various 
130.9   pupil-based formulas as compared to the current formula; 
130.10     (2) minimizes data requirements and recordkeeping by 
130.11  districts; 
130.12     (3) provides comparable resources for comparable students; 
130.13     (4) provides districts with flexibility to deal with unique 
130.14  conditions in a cost-effective manner; 
130.15     (5) minimizes the incentive for districts to over-identify 
130.16  students for special services or to classify students in a 
130.17  higher cost disability level; and 
130.18     (6) provides basic special education funding as well as 
130.19  absorbing unique excess costs. 
130.20     The commissioner shall report its findings to the education 
130.21  committees of the legislature by December 1, 1999. 
130.22     Sec. 81.  [SPECIAL EDUCATION RULES.] 
130.23     The commissioner shall adopt rules to update Minnesota 
130.24  Rules, chapter 3525, for special education.  Provisions of this 
130.25  chapter that exceed federal requirements are deemed valid for 
130.26  the purposes of providing special instruction and services to 
130.27  children with a disability.  In addition to technical changes, 
130.28  corrections, clarifications, and similarly needed revisions, 
130.29  specific rules shall be modified or repealed as indicated below: 
130.30     (1) to Minnesota Rules, part 3525.0200, add definition of 
130.31  caseload; 
130.32     (2) revise Minnesota Rules, part 3525.0550, to update role 
130.33  of IEP manager; 
130.34     (3) repeal Minnesota Rules, part 3525.1100, subpart 2, item 
130.35  D, on parent advisory council as duplicative; 
130.36     (4) to Minnesota Rules, part 3525.1329, amend eligibility 
131.1   criteria for emotional or behavior disorders so that the 
131.2   standards reflect severe emotional disorder and professional 
131.3   standards; 
131.4      (5) amend Minnesota Rules, part 3525.2325, to revise 
131.5   outdated standards for students placed for care and treatment to 
131.6   be compatible with related legislation; 
131.7      (6) repeal Minnesota Rules, part 3525.2550, on conduct 
131.8   before assessment except for subpart 2, item C; 
131.9      (7) add a rule to make the responsibilities of the IEP team 
131.10  for assessment, IEP development, and placement decisions 
131.11  consistent with federal requirements; 
131.12     (8) repeal Minnesota Rules, part 3525.2750, on educational 
131.13  assessment as duplicative; 
131.14     (9) repeal Minnesota Rules, part 3525.2900, on IEP 
131.15  development and content except for subparts 4 and 5 on regulated 
131.16  interventions; and 
131.17     (10) repeal Minnesota Rules, part 3525.3300, except item B, 
131.18  on contents of notice as duplicative.  
131.19     Sec. 82.  [SPECIAL EDUCATION RULES; EXPEDITED PROCESS.] 
131.20     Beginning no later than July 1, 1999, the commissioner 
131.21  shall amend Minnesota Rules, chapter 3525, for special education 
131.22  using the expedited process under Minnesota Statutes 1998, 
131.23  section 14.389.  In addition to technical changes, corrections, 
131.24  clarifications, and similarly needed revisions, specific rules 
131.25  shall be modified or repealed as indicated below: 
131.26     (1) repeal Minnesota Rules, part 3525.0200, subpart 6a, on 
131.27  definition of IEP; 
131.28     (2) repeal Minnesota Rules, part 3525.0200, subpart 11a, on 
131.29  definition of parent; 
131.30     (3) amend Minnesota Rules, part 3525.0750, to include 
131.31  children enrolled in nonpublic schools for child find purposes; 
131.32     (4) amend Minnesota Rules, part 3525.0800, subpart 8, on 
131.33  district responsibility for choice options in accordance with 
131.34  legislation; 
131.35     (5) amend Minnesota Rules, part 3525.0800, subpart 9, on 
131.36  district responsibility for upper age limit in accordance with 
132.1   legislation; 
132.2      (6) repeal Minnesota Rules, part 3525.1150; 
132.3      (7) amend Minnesota Rules, part 3525.1310, to add program 
132.4   coordination and due process facilitation to list of 
132.5   reimbursable activities; 
132.6      (8) amend Minnesota Rules, part 3525.1325, to revise 
132.7   eligibility criteria for autism to reflect professional 
132.8   standards; 
132.9      (9) amend Minnesota Rules, part 3525.1327, to make minor 
132.10  revisions necessary to update eligibility criteria for 
132.11  deaf-blindness; 
132.12     (10) amend Minnesota Rules, part 3525.1331, to make minor 
132.13  revisions necessary to update eligibility criteria for deaf and 
132.14  hard of hearing; 
132.15     (11) amend Minnesota Rules, part 3525.1333, to revise 
132.16  eligibility criteria for cognitive impairment to reflect 
132.17  professional standards; 
132.18     (12) amend Minnesota Rules, part 3525.1335, to revise 
132.19  eligibility criteria for other health-impaired to reflect 
132.20  professional standards; 
132.21     (13) amend Minnesota Rules, part 3525.1337, to make minor 
132.22  revisions necessary to update eligibility criteria for physical 
132.23  impairment; 
132.24     (14) amend Minnesota Rules, part 3525.1341, to make minor 
132.25  revisions necessary to update eligibility criteria for specific 
132.26  learning disability; 
132.27     (15) amend Minnesota Rules, part 3525.1343, to make minor 
132.28  revisions necessary to update eligibility criteria for speech 
132.29  and language impairments; 
132.30     (16) amend Minnesota Rules, part 3525.1345, to make minor 
132.31  revisions necessary to update eligibility criteria for blind and 
132.32  vision impaired; 
132.33     (17) amend Minnesota Rules, part 3525.1350, to make minor 
132.34  revisions necessary to update eligibility criteria for early 
132.35  childhood:  special education; 
132.36     (18) amend Minnesota Rules, part 3525.1352, to make minor 
133.1   revisions necessary to update eligibility criteria for 
133.2   developmental adapted physical education:  special education; 
133.3      (19) amend Minnesota Rules, part 3525.1354, to repeal 
133.4   subpart 2 to drop documentation requirement on override 
133.5   decisions; 
133.6      (20) repeal Minnesota Rules, part 3525.1356, on exit 
133.7   procedures; 
133.8      (21) amend Minnesota Rules, part 3525.2335, to make minor 
133.9   revisions to update standards for early childhood program 
133.10  options, and repeal subpart 2, item C; 
133.11     (22) amend Minnesota Rules, part 3525.2340, to revise 
133.12  caseload standard for young children to clarify how caseload is 
133.13  determined and to reflect supervision and safety needs of very 
133.14  small children in various settings; 
133.15     (23) amend Minnesota Rules, part 3525.2405, to repeal 
133.16  subparts 2 and 3 on reimbursement standards for directors of 
133.17  special education; 
133.18     (24) repeal Minnesota Rules, part 3525.2420, on variance 
133.19  request for director of special education; 
133.20     (25) repeal Minnesota Rules, part 3525.2650, as duplicative 
133.21  notice requirements; 
133.22     (26) repeal Minnesota Rules, part 3525.3000, on periodic 
133.23  reviews and documentation requirement; 
133.24     (27) repeal Minnesota Rules, part 3525.3150, as duplicative 
133.25  diploma requirements; 
133.26     (28) repeal Minnesota Rules, part 3525.3200, as duplicative 
133.27  notice requirement; 
133.28     (29) amend Minnesota Rules, part 3525.3500, to repeal 
133.29  duplicative notice requirements and mandate for districts to 
133.30  initiate a hearing when refusing request for assessment; and 
133.31     (30) amend Minnesota Rules, parts 3525.3800 to 3525.4700, 
133.32  on due process hearings to make them compatible with state and 
133.33  federal legislation. 
133.34     Sec. 83.  [APPROPRIATIONS.] 
133.35     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
133.36  LEARNING.] The sums indicated in this section are appropriated 
134.1   from the general fund to the department of children, families, 
134.2   and learning for the fiscal years designated.  
134.3      Subd. 2.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 
134.4   For grants to American Indian language and culture education 
134.5   programs according to Minnesota Statutes, section 124D.81, 
134.6   subdivision 1: 
134.7        $730,000     .....     2000
134.8        $730,000     .....     2001
134.9      The 2000 appropriation includes $73,000 for 1999 and 
134.10  $657,000 for 2000.  
134.11     The 2001 appropriation includes $73,000 for 2000 and 
134.12  $657,000 for 2001.  
134.13     Any balance in the first year does not cancel but is 
134.14  available in the second year. 
134.15     Subd. 3.  [AMERICAN INDIAN EDUCATION.] (a) For certain 
134.16  American Indian education programs in school districts: 
134.17       $175,000     .....     2000
134.18       $175,000     .....     2001
134.19     The 2000 appropriation includes $17,000 for 1999 and 
134.20  $158,000 for 2000.  
134.21     The 2001 appropriation includes $17,000 for 2000 and 
134.22  $158,000 for 2001.  
134.23     (b) These appropriations are available for expenditure with 
134.24  the approval of the commissioner of the department of children, 
134.25  families, and learning. 
134.26     (c) The commissioner must not approve the payment of any 
134.27  amount to a school district or school under this subdivision 
134.28  unless that school district or school is in compliance with all 
134.29  applicable laws of this state. 
134.30     (d) Up to the following amounts may be distributed to the 
134.31  following schools and school districts for each fiscal year:  
134.32  $54,800 Pine Point School; $9,800 to independent school district 
134.33  No. 166, Cook county; $14,900 to independent school district No. 
134.34  432, Mahnomen; $14,200 to independent school district No. 435, 
134.35  Waubun; $42,200 to independent school district No. 707, Nett 
134.36  Lake; and $39,100 to independent school district No. 38, Red 
135.1   Lake.  These amounts must be spent only for the benefit of 
135.2   American Indian pupils and to meet established state educational 
135.3   standards or statewide requirements. 
135.4      (e) Before a district or school can receive money under 
135.5   this subdivision, the district or school must submit, to the 
135.6   commissioner, evidence that it has complied with the uniform 
135.7   financial accounting and reporting standards act, Minnesota 
135.8   Statutes, sections 123B.75 to 123B.83. 
135.9      Subd. 4.  [AMERICAN INDIAN POST-SECONDARY PREPARATION 
135.10  GRANTS.] For American Indian post-secondary preparation grants 
135.11  according to Minnesota Statutes, section 124D.85: 
135.12       $982,000     .....     2000
135.13       $982,000     .....     2001
135.14     Any balance in the first year does not cancel but is 
135.15  available in the second year. 
135.16     Subd. 5.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
135.17  Indian scholarships according to Minnesota Statutes, section 
135.18  124D.84: 
135.19       $1,875,000   .....     2000 
135.20       $1,875,000   .....     2001 
135.21     Any balance in the first year does not cancel but is 
135.22  available in the second year. 
135.23     Subd. 6.  [INDIAN TEACHER PREPARATION GRANTS.] (a) For 
135.24  joint grants to assist Indian people to become teachers: 
135.25       $190,000     .....     2000 
135.26       $190,000     .....     2001 
135.27     (b) Up to $70,000 each year is for a joint grant to the 
135.28  University of Minnesota at Duluth and independent school 
135.29  district No. 709, Duluth. 
135.30     (c) Up to $40,000 each year is for a joint grant to each of 
135.31  the following: 
135.32     (1) Bemidji state university and independent school 
135.33  district No. 38, Red Lake; 
135.34     (2) Moorhead state university and a school district located 
135.35  within the White Earth reservation; and 
135.36     (3) Augsburg college, independent school district No. 625, 
136.1   St. Paul, and special school district No. 1, Minneapolis. 
136.2      (d) Money not used for students at one location may be 
136.3   transferred for use at another location. 
136.4      (e) Any balance in the first year does not cancel but is 
136.5   available in the second year. 
136.6      Subd. 7.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
136.7   school aid according to Minnesota Statutes, section 124D.83: 
136.8        $2,706,000  .....     2000
136.9        $2,790,000  .....     2001
136.10     The 2000 appropriation includes $283,000 for 1999 and 
136.11  $2,423,000 for 2000. 
136.12     The 2001 appropriation includes $269,000 for 2000 and 
136.13  $2,521,000 for 2001. 
136.14     Subd. 8.  [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For 
136.15  early childhood family education programs at tribal contract 
136.16  schools: 
136.17       $68,000     .....     2000 
136.18       $68,000     .....     2001 
136.19     Subd. 9.  [MAGNET SCHOOL GRANTS.] For magnet school and 
136.20  program grants: 
136.21       $1,750,000  .....     2000 
136.22       $1,750,000  .....     2001 
136.23     These amounts may be used for magnet school programs 
136.24  according to Minnesota Statutes, section 124D.88. 
136.25     Subd. 10.  [INTEGRATION PROGRAMS.] For grants according to: 
136.26  minority fellowship grants according to Laws 1994, chapter 647, 
136.27  article 8, section 29; minority teacher incentives according to 
136.28  Minnesota Statutes, section 122A.65; teachers of color grants 
136.29  according to Minnesota Statutes, section 122A.64; and cultural 
136.30  exchange grants according to Minnesota Statutes, section 124D.89:
136.31       $1,000,000     .....     2000
136.32       $1,000,000     .....     2001
136.33     Any balance in the first year does not cancel but is 
136.34  available in the second year. 
136.35     In awarding teacher of color grants, priority must be given 
136.36  to districts that have students who are currently in the process 
137.1   of completing their academic program. 
137.2      Subd. 11.  [SPECIAL EDUCATION AID.] For special education 
137.3   aid according to Minnesota Statutes, section 125A.75: 
137.4        $432,451,000   .....     2000 
137.5        $436,834,000   .....     2001 
137.6      The 2000 appropriation includes $39,330,000 for 1999 and 
137.7   $393,151,000 for 2000.  
137.8      The 2001 appropriation includes $43,683,000 for 2000 and 
137.9   $393,151,000 for 2001.  
137.10     Subd. 12.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
137.11  according to Minnesota Statutes, section 125A.75, subdivision 3, 
137.12  for children with a disability placed in residential facilities 
137.13  within the district boundaries for whom no district of residence 
137.14  can be determined: 
137.15       $  443,000   .....     2000 
137.16       $1,064,000   .....     2001 
137.17     If the appropriation for either year is insufficient, the 
137.18  appropriation for the other year is available.  Any balance in 
137.19  the first year does not cancel but is available in the second 
137.20  year. 
137.21     Subd. 13.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
137.22  teacher travel for home-based services according to Minnesota 
137.23  Statutes, section 125A.75, subdivision 1: 
137.24       $133,000     .....     2000 
137.25       $139,000     .....     2001 
137.26     The 2000 appropriation includes $11,000 for 1999 and 
137.27  $122,000 for 2000.  
137.28     The 2001 appropriation includes $13,000 for 2000 and 
137.29  $126,000 for 2001.  
137.30     Subd. 14.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
137.31  cost aid: 
137.32       $56,659,000    .....     2000 
137.33       $84,838,000    .....     2001 
137.34     The 2000 appropriation includes $5,666,000 for 1999 and 
137.35  $50,993,000 for 2000.  
137.36     The 2001 appropriation includes $8,484,000 for 2000 and 
138.1   $76,354,000 for 2001. 
138.2      Subd. 15.  [SCHOOL-TO-WORK PROGRAMS; STUDENTS WITH 
138.3   DISABILITIES.] For aid for school-to-work programs for pupils 
138.4   with disabilities according to Minnesota Statutes, section 
138.5   124D.454: 
138.6        $8,892,000     .....     2000 
138.7        $8,968,000     .....     2001 
138.8      The 2000 appropriation includes $808,000 for 1999 and 
138.9   $8,084,000 for 2000.  
138.10     The 2001 appropriation includes $898,000 for 2000 and 
138.11  $8,070,000 for 2001.  
138.12     Subd. 16.  [SPECIAL PROGRAMS EQUALIZATION AID.] For special 
138.13  education levy equalization aid according to Minnesota Statutes, 
138.14  section 125A.77: 
138.15       $526,000      .....     2000
138.16     The 2000 appropriation includes $526,000 for 1999 and $0 
138.17  for 2000.  
138.18     Subd. 17.  [INTEGRATION AID.] For integration aid: 
138.19       $37,182,000   .....     2000 
138.20       $43,787,000   .....     2001 
138.21     The 2000 appropriation includes $2,902,000 for 1999 and 
138.22  $34,280,000 for 2000. 
138.23     The 2001 appropriation includes $3,809,000 for 2000 and 
138.24  $39,978,000 for 2001.  
138.25     Subd. 18.  [ADDITIONAL REVENUE FOR HOMELESS STUDENTS.] For 
138.26  additional revenue for homeless students according to Minnesota 
138.27  Statutes, section 124D.70: 
138.28       $60,000       .....     2000
138.29       $60,000       .....     2001 
138.30     The 2000 appropriation includes $6,000 for 1999 and $54,000 
138.31  for 2000. 
138.32     The 2001 appropriation includes $6,000 for 2000 and $54,000 
138.33  for 2001. 
138.34     Subd. 19.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
138.35  TRANSPORTATION GRANTS.] For interdistrict desegregation or 
138.36  integration transportation grants under Minnesota Statutes, 
139.1   section 124D.87: 
139.2        $970,000       .....     2000
139.3        $970,000       .....     2001
139.4      Any balance in the first year does not cancel but is 
139.5   available in the second year. 
139.6      Subd. 20.  [COMMUNITY INTERVENTION AND PREVENTION 
139.7   GRANTS.] For community intervention and prevention grants: 
139.8        $6,000,000     .....     2000 
139.9      Of this amount, $100,000 is for a grant to the city of St. 
139.10  Louis Park for the Meadowbrook collaborative housing project; 
139.11  $300,000 is for a grant to the southwest and west central 
139.12  service cooperative to operate the child guide prevention 
139.13  program; $500,000 is for programs for community support for 
139.14  families with deaf and hard-of-hearing children; $500,000 is for 
139.15  school-linked prevention and early intervention programs; 
139.16  $750,000 is for the family connections program; $750,000 is for 
139.17  a grant to the YMCA of metropolitan Minneapolis for the Beacons 
139.18  Project; $500,000 is for grants to culturally based community 
139.19  organizations to improve the education outcomes of students who 
139.20  speak English as a second language; $500,000 is for grants to 
139.21  organizations that provide job training programs for immigrants 
139.22  ages 12 to 24; and $1,000,000 is a one-time appropriation for 
139.23  adolescent parenting grants under Laws 1997, chapter 162, 
139.24  article 2, section 28. 
139.25     This appropriation is available until June 30, 2001. 
139.26     Subd. 21.  [CENTER FOR VICTIMS OF TORTURE.] For the center 
139.27  for victims of torture to provide training, consultation, and 
139.28  support services in public schools with significant populations 
139.29  of traumatized refugee and immigrant students: 
139.30       $75,000        .....     2000 
139.31       $75,000        .....     2001 
139.32     Any balance in the first year does not cancel but is 
139.33  available in the second year. 
139.34     Subd. 22.  [GRANTS TO INDEPENDENT SCHOOL DISTRICT NO. 707, 
139.35  NETT LAKE.] For grants to independent school district No. 707, 
139.36  Nett Lake: 
140.1        $165,000       .....     2000 
140.2        $165,000       .....     2001 
140.3      $30,000 each year is for grants to pay property and boiler 
140.4   insurance premiums under Minnesota Statutes, section 466.06. 
140.5      $30,000 each year is for grants to pay obligations of the 
140.6   school district for unemployment compensation.  The 
140.7   appropriation must be paid to the appropriate state agency for 
140.8   such purposes in the name of the school district. 
140.9      $70,000 each year is for grants to pay for the maintenance 
140.10  of school facilities. 
140.11     $35,000 each year is for grants for a media specialist for 
140.12  preschool through grade 6. 
140.13     Subd. 23.  [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 
140.14  HOMELESS CHILDREN.] For matching grants for education programs 
140.15  serving homeless children under Laws 1997, First Special Session 
140.16  chapter 4, article 2, section 48: 
140.17       $1,100,000     .....     2000 
140.18     This appropriation is available until June 30, 2001. 
140.19     Subd. 24.  [SPECIAL EDUCATION ADJUSTMENT; ROCHESTER.] For a 
140.20  special education revenue adjustment for independent school 
140.21  district No. 535, Rochester: 
140.22       $150,000       .....     2000 
140.23       $ 15,000       .....     2001 
140.24     Subd. 25.  [CARE AND TREATMENT INSTRUCTIONAL AID.] For care 
140.25  and treatment instructional aid under Minnesota Statutes, 
140.26  section 124D.701: 
140.27       $2,490,000     .....     2001 
140.28     If the appropriation under this section is insufficient to 
140.29  cover the expenses submitted by districts, the commissioner 
140.30  shall prorate the aid to districts based on the expenses 
140.31  submitted by districts. 
140.32     Subd. 26.  [OUT-OF-STATE TUITION.] For out-of-state tuition 
140.33  under Minnesota Statutes, section 125A.79, subdivision 8: 
140.34       $250,000       .....     2001 
140.35     If the appropriation under this section is insufficient to 
140.36  cover the expenses submitted by districts, the commissioner 
141.1   shall prorate the aid to districts based on the expenses 
141.2   submitted by districts. 
141.3      Subd. 27.  [UNIFORM BILLING SYSTEM; TECHNICAL 
141.4   ASSISTANCE.] For implementing an effective and efficient uniform 
141.5   billing system for the educational costs of students placed out 
141.6   of the home: 
141.7        $100,000       .....     2000 
141.8      Subd. 28.  [STATE APPROVAL OF EDUCATION PROGRAMS AT CARE 
141.9   AND TREATMENT FACILITIES.] For developing and implementing a 
141.10  system to approve education costs of students placed out of the 
141.11  home: 
141.12       $200,000       .....     2000 
141.13     This appropriation is available until June 30, 2001. 
141.14     Subd. 29.  [FIRST-GRADE PREPAREDNESS GRANTS.] For grants 
141.15  for the first-grade preparedness program under Minnesota 
141.16  Statutes, section 124D.081: 
141.17       $7,000,000     .....     2000 
141.18       $7,000,000     .....     2001 
141.19     For each year, the appropriation must first be used to fund 
141.20  programs operating during the 1998-1999 school year, unless the 
141.21  site's ranking, as determined by Minnesota Statutes, section 
141.22  124D.081, subdivision 3, falls below the state average for 
141.23  elementary schools.  Any remaining funds may be used to expand 
141.24  the number of sites according to Minnesota Statutes, section 
141.25  124D.081, subdivision 3. 
141.26     Subd. 30.  [LITIGATION COSTS.] For paying the costs a 
141.27  district incurs under Minnesota Statutes, section 125A.75, 
141.28  subdivision 8: 
141.29       $500,000     .....     2000
141.30       $500,000     .....     2001
141.31     Subd. 31.  [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 
141.32  reimbursing serving school districts for unreimbursed eligible 
141.33  expenditures attributable to children placed in the serving 
141.34  school district by court action under Minnesota Statutes, 
141.35  section 125A.79, subdivision 4: 
141.36       $350,000     .....     2000 
142.1        $350,000     .....     2001 
142.2      Sec. 84.  [REVISOR INSTRUCTION.] 
142.3      In the next and subsequent editions of Minnesota Statutes 
142.4   and Minnesota Rules, the revisor shall change all references to 
142.5   the "Faribault academies" to the "Minnesota state academies." 
142.6      Sec. 85.  [REPEALER.] 
142.7      Minnesota Statutes 1998, sections 124D.081, subdivision 7; 
142.8   125A.76, subdivision 6; 125A.77; and 125A.79, subdivision 3, are 
142.9   repealed.  Laws 1995, First Special Session chapter 3, article 
142.10  3, section 11; Laws 1997, First Special Session chapter 4, 
142.11  article 2, section 51, subdivision 10; and Laws 1998, chapter 
142.12  398, article 2, sections 53 and 57, are repealed.  Minnesota 
142.13  Rules, part 3525.2470, is repealed. 
142.14     Sec. 86.  [EFFECTIVE DATES.] 
142.15     When preparing the prekindergarten through grade 12 
142.16  education conference committee report for adoption by the 
142.17  legislature, the revisor shall combine all effective date 
142.18  notations in this article into this effective dates section. 
142.19                             ARTICLE 3 
142.20                         LIFELONG LEARNING 
142.21     Section 1.  Minnesota Statutes 1998, section 124D.453, 
142.22  subdivision 3, is amended to read: 
142.23     Subd. 3.  [SECONDARY VOCATIONAL AID.] A district's 
142.24  secondary vocational education aid for a fiscal year 2000 equals 
142.25  the lesser of: 
142.26     (a) $80 $42 times the district's average daily membership 
142.27  in grades 10 to 12; or 
142.28     (b) 25 percent of approved expenditures for the following: 
142.29     (1) salaries paid to essential, licensed personnel 
142.30  providing direct instructional services to students in that 
142.31  fiscal year for services rendered in the district's approved 
142.32  secondary vocational education programs; 
142.33     (2) contracted services provided by a public or private 
142.34  agency other than a Minnesota school district or cooperative 
142.35  center under subdivision 7; 
142.36     (3) necessary travel between instructional sites by 
143.1   licensed secondary vocational education personnel; 
143.2      (4) necessary travel by licensed secondary vocational 
143.3   education personnel for vocational student organization 
143.4   activities held within the state for instructional purposes; 
143.5      (5) curriculum development activities that are part of a 
143.6   five-year plan for improvement based on program assessment; 
143.7      (6) necessary travel by licensed secondary vocational 
143.8   education personnel for noncollegiate credit bearing 
143.9   professional development; and 
143.10     (7) specialized vocational instructional supplies. 
143.11     (c) Up to ten percent of a district's secondary vocational 
143.12  aid may be spent on equipment purchases.  Districts using 
143.13  secondary vocational aid for equipment purchases must report to 
143.14  the department on the improved learning opportunities for 
143.15  students that result from the investment in equipment.  
143.16     Sec. 2.  Minnesota Statutes 1998, section 124D.453, 
143.17  subdivision 5, is amended to read: 
143.18     Subd. 5.  [AID GUARANTEE.] Notwithstanding subdivision 3, 
143.19  the secondary vocational education aid for a district is not 
143.20  less than the lesser of: 
143.21     (a) 95 50 percent of the secondary vocational education aid 
143.22  the district received for the previous fiscal year; or 
143.23     (b) 40 percent of the approved expenditures for secondary 
143.24  vocational programs included in subdivision 3, paragraph (b). 
143.25     Sec. 3.  Laws 1997, First Special Session chapter 4, 
143.26  article 3, section 25, subdivision 6, is amended to read: 
143.27     Subd. 6.  [SOUTHWEST STAR CONCEPT SCHOOL.] For a grant to 
143.28  independent school district No. 330, Heron Lake-Okabena, to 
143.29  establish the Southwest Star Concept School: 
143.30       $193,000     .....     1998
143.31     This appropriation may be used for equipment, activities 
143.32  beyond the classroom walls, professional planning assistance, 
143.33  monitoring, evaluating, and reporting activities related to the 
143.34  case study prepared in section 22. 
143.35     This appropriation is available until June 30, 1999. 
143.36     <i>(Effective date:  Section 3 (Laws 1997, First Special</i> 
144.1   <i>Session chapter 4, article 3, section 25, subdivision 6) is</i> 
144.2   <i>effective retroactive to July 1, 1997.)</i> 
144.3      Sec. 4.  [APPROPRIATIONS.] 
144.4      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
144.5   LEARNING.] The sums indicated in this section are appropriated 
144.6   from the general fund to the department of children, families, 
144.7   and learning for the fiscal years designated. 
144.8      Subd. 2.  [SECONDARY VOCATIONAL AID.] For secondary 
144.9   vocational education aid according to Minnesota Statutes, 
144.10  section 124D.453: 
144.11       $7,473,000     .....     2000 
144.12       $  702,000     .....     2001 
144.13     The 2000 appropriation includes $1,159,000 for 1999 and 
144.14  $6,314,000 for 2000. 
144.15     The 2001 appropriation includes $702,000 for 2000 and $0 
144.16  for 2001. 
144.17     Subd. 3.  [YOUTH WORKS PROGRAM.] For funding youth works 
144.18  programs according to Minnesota Statutes, sections 124D.37 to 
144.19  124D.45: 
144.20       $1,788,000     .....     2000 
144.21       $1,788,000     .....     2001 
144.22     A grantee organization may provide health and child care 
144.23  coverage to the dependents of each participant enrolled in a 
144.24  full-time youth works program to the extent coverage is not 
144.25  otherwise provided. 
144.26     Any balance in the first year does not cancel but is 
144.27  available in the second year. 
144.28     Subd. 4.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
144.29  GRANTS.] For education and employment transitions programming 
144.30  under Minnesota Statutes, section 124D.46: 
144.31       $3,225,000     .....     2000 
144.32       $3,225,000     .....     2001 
144.33     $200,000 each year is for the development and 
144.34  implementation of the ISEEK Internet-based education and 
144.35  employment information system. 
144.36     $1,000,000 each year is for an employer rebate program for 
145.1   qualifying employers who offer youth internships to educators. 
145.2      $500,000 each year is for youth entrepreneurship grants.  
145.3   Of this amount, $100,000 each year is for the high school 
145.4   student-run business project in independent school district No. 
145.5   175, Westbrook.  This appropriation shall be used for salaries, 
145.6   travel, seminars, equipment, contractual expenses, and other 
145.7   expenses related to providing assistance to other districts who 
145.8   are starting entrepreneurship programs.  Independent school 
145.9   district No. 175, Westbrook, shall also work in coordination 
145.10  with the commissioner to develop a directory of entrepreneurship 
145.11  programs in the state. 
145.12     $750,000 each year is for youth apprenticeship grants. 
145.13     $300,000 each year is for grants to programs in cities of 
145.14  the first class to expand the number of at-risk students 
145.15  participating in school-to-work projects. 
145.16     $350,000 each year is for agricultural school-to-work 
145.17  grants. 
145.18     $125,000 each year is to conduct a high school follow-up 
145.19  survey to include first, third, and sixth year graduates of 
145.20  Minnesota schools. 
145.21     Subd. 5.  [LEARN AND EARN GRADUATION ACHIEVEMENT 
145.22  PROGRAM.] For the learn and earn graduation achievement program 
145.23  under Minnesota Statutes, section 124D.32: 
145.24       $1,500,000     .....     2000 
145.25       $1,500,000     .....     2001 
145.26     This appropriation is available until June 30, 2001. 
145.27     Subd. 6.  [SOUTHWEST STAR CONCEPT SCHOOL.] For a grant to 
145.28  independent school district No. 330, Heron Lake-Okabena, to 
145.29  continue to develop the Southwest Star Concept School authorized 
145.30  under Laws 1997, First Special Session chapter 4, article 3, 
145.31  section 22: 
145.32       $179,000       .....     2000 
145.33     The grant may be used to expand the school's technology 
145.34  department, music and fine arts program, theater program, arts 
145.35  program, and health and physical education program. 
145.36     This appropriation is available until June 30, 2001. 
146.1      Sec. 5.  [REPEALER.] 
146.2      Minnesota Statutes 1998, section 124D.453, subdivision 1, 
146.3   is repealed effective July 1, 2000. 
146.4      Sec. 6.  [EFFECTIVE DATE.] 
146.5      When preparing the prekindergarten through grade 12 
146.6   education conference committee report for adoption by the 
146.7   legislature, the revisor shall combine all effective date 
146.8   notations in this article into this effective date section. 
146.9                              ARTICLE 4 
146.10                     FACILITIES AND TECHNOLOGY 
146.11     Section 1.  Minnesota Statutes 1998, section 123B.53, is 
146.12  amended to read: 
146.13     123B.53 [DEBT SERVICE FACILITIES EQUALIZATION PROGRAM.] 
146.14     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
146.15  section, the eligible debt service facilities revenue of a 
146.16  district is defined as follows: 
146.17     (1) the amount needed to produce between five and six 
146.18  percent in excess of the amount needed to meet when due the 
146.19  principal and interest payments on the obligations of the 
146.20  district for eligible projects according to subdivision 2, 
146.21  including the amounts necessary for repayment of energy loans 
146.22  according to section 216C.37 or sections 298.292 to 298.298 
146.23  126C.40, subdivision 5, debt service loans and capital loans, 
146.24  lease purchase payments under section 126C.40, subdivision 
146.25  subdivisions 2 and 6; Laws 1995, First Special Session chapter 
146.26  3, article 5, section 19; and Laws 1997, First Special Session 
146.27  chapter 4, article 4, section 30, alternative facilities levies 
146.28  revenue under section 123B.59, subdivision 5, historic building 
146.29  revenue, under section 123B.64, subdivision 2; health and safety 
146.30  revenue, under section 123B.57, subdivision 3; handicapped 
146.31  access and fire safety revenue, under section 123B.58, 
146.32  subdivision 3; building construction down payment and lease 
146.33  program, under section 123B.63; building lease revenue, under 
146.34  section 126C.40, subdivision 1; and cooperative building repair 
146.35  revenue, under section 126C.40, subdivision 3, minus 
146.36     (2) the amount of debt service excess levy reduction for 
147.1   that school year calculated according to the procedure 
147.2   established by the commissioner. 
147.3      (b) The obligations in this paragraph are excluded from 
147.4   eligible debt service facilities revenue: 
147.5      (1) obligations under section 123B.61; 
147.6      (2) the part of debt service principal and interest paid 
147.7   from the taconite environmental protection fund or northeast 
147.8   Minnesota economic protection trust; 
147.9      (3) obligations issued under Laws 1991, chapter 265, 
147.10  article 5, section 18, as amended by Laws 1992, chapter 499, 
147.11  article 5, section 24; and 
147.12     (4) obligations under section 123B.62. 
147.13     (c) For purposes of this section, if a preexisting school 
147.14  district reorganized under sections 123A.35 to 123A.43, 123A.46, 
147.15  and 123A.48 is solely responsible for retirement of the 
147.16  preexisting district's bonded indebtedness, capital loans or 
147.17  debt service loans, debt service facilities equalization aid 
147.18  must be computed separately for each of the preexisting 
147.19  districts. 
147.20     Subd. 2.  [ELIGIBILITY.] (a) The following portions of a 
147.21  district's debt service levy facilities revenue qualify for debt 
147.22  service facilities equalization: 
147.23     (1) debt service for repayment of principal and interest on 
147.24  bonds issued before July 2, 1992; 
147.25     (2) debt service for bonds refinanced after July 1, 1992, 
147.26  if the bond schedule has been approved by the commissioner and, 
147.27  if necessary, adjusted to reflect a 20-year maturity schedule; 
147.28  and 
147.29     (3) debt service for bonds issued after July 1, 1992, for 
147.30  construction projects that have received a positive review and 
147.31  comment according to section 123B.71, if the commissioner has 
147.32  determined that the district has met the criteria under section 
147.33  126C.69, subdivision 3, and if the bond schedule has been 
147.34  approved by the commissioner and, if necessary, adjusted to 
147.35  reflect a 20-year maturity schedule.; 
147.36     (4) alternative facilities revenue, according to section 
148.1   123B.59, subdivision 5; 
148.2      (5) historic building revenue, according to section 
148.3   123B.64, subdivision 2; 
148.4      (6) health and safety revenue, according to section 
148.5   123B.57, subdivision 3; 
148.6      (7) handicapped access and fire safety revenue, according 
148.7   to section 123B.58, subdivision 3; 
148.8      (8) building construction and lease revenue, according to 
148.9   section 123B.63, subdivision 3; 
148.10     (9) building lease revenue, according to section 126C.40, 
148.11  subdivision 1; and 
148.12     (10) cooperative building repair revenue, according to 
148.13  section 126C.40, subdivision 3.  
148.14     (b) The criterion in section 126C.69, subdivision 3, 
148.15  paragraph (a), clause (2), shall be considered to have been met 
148.16  if the district in the fiscal year in which the bonds are 
148.17  authorized at an election conducted under chapter 475: 
148.18     (i) if grades 9 through 12 are to be served by the 
148.19  facility, and an average of at least 66 pupils per grade in 
148.20  these grades are served; or 
148.21     (ii) is eligible for elementary or secondary sparsity 
148.22  revenue. 
148.23     (c) The criterion in section 126C.69, subdivision 3, 
148.24  paragraph (a), clause (2), shall also be considered to have been 
148.25  met if the construction project under review serves students in 
148.26  kindergarten to grade 8.  Only the debt service levy for that 
148.27  portion of the facility serving students in prekindergarten to 
148.28  grade 8, as determined by the commissioner, shall be eligible 
148.29  for debt service equalization under this paragraph. 
148.30     (d) The criterion described in section 126C.69, subdivision 
148.31  3, paragraph (a), clause (9), does not apply to bonds authorized 
148.32  by elections held before July 1, 1992. 
148.33     (e) For the purpose of this subdivision the department 
148.34  shall determine the eligibility for sparsity at the location of 
148.35  the new facility, or the site of the new facility closest to the 
148.36  nearest operating school if there is more than one new facility. 
149.1      (f) Notwithstanding paragraphs (a) to (e), debt service for 
149.2   repayment of principal and interest on bonds issued after July 
149.3   1, 1997, does not qualify for debt service facilities 
149.4   equalization aid unless the primary purpose of the facility is 
149.5   to serve students in kindergarten through grade 12. 
149.6      Subd. 3.  [NOTIFICATION.] A district eligible for debt 
149.7   service facilities equalization revenue under subdivision 2 must 
149.8   notify the commissioner of the amount of its intended debt 
149.9   service facilities equalization revenue calculated under 
149.10  subdivision 1 for all bonds sold prior to the notification by 
149.11  July 1 of the calendar year the levy is certified. 
149.12     Subd. 4.  [DEBT SERVICE FACILITIES EQUALIZATION REVENUE.] 
149.13  (a) For fiscal years 1995 and later, The debt service facilities 
149.14  equalization revenue of a district equals the eligible debt 
149.15  service facilities equalization revenue minus the amount raised 
149.16  by a levy of ten 12 percent times the adjusted net tax capacity 
149.17  of the district. 
149.18     (b) For fiscal year 1993, debt service equalization revenue 
149.19  equals one-third of the amount calculated in paragraph (a). 
149.20     (c) For fiscal year 1994, debt service equalization revenue 
149.21  equals two-thirds of the amount calculated in paragraph (a). 
149.22     Subd. 5.  [EQUALIZED DEBT SERVICE FACILITIES LEVY.] To 
149.23  obtain debt service facilities equalization revenue, a district 
149.24  must levy an amount not to exceed the district's debt service 
149.25  facilities equalization revenue times the lesser of one or the 
149.26  ratio of: 
149.27     (1) the quotient derived by dividing the adjusted net tax 
149.28  capacity of the district for the year before the year the levy 
149.29  is certified by the resident adjusted pupil units in the 
149.30  district for the school year ending in the year prior to the 
149.31  year the levy is certified; to 
149.32     (2) $4,707.50 $4,000. 
149.33     Subd. 6.  [DEBT SERVICE FACILITIES EQUALIZATION AID.] A 
149.34  district's debt service facilities equalization aid is the 
149.35  difference between the debt service facilities equalization 
149.36  revenue and the equalized debt service facilities levy.  If a 
150.1   district does not levy the entire amount permitted, the 
150.2   district's aid must be reduced in proportion to the amount 
150.3   levied.  If the amount of debt service facilities equalization 
150.4   aid actually appropriated for the fiscal year in which this 
150.5   calculation is made is insufficient to fully fund debt service 
150.6   facilities equalization aid, the commissioner shall prorate the 
150.7   amount of aid across all eligible districts. 
150.8      Subd. 7.  [DEBT SERVICE FACILITIES EQUALIZATION AID PAYMENT 
150.9   SCHEDULE.] Debt service Facilities equalization aid must be paid 
150.10  as follows:  30 percent before September 15, 30 percent before 
150.11  December 15, 30 percent before March 15, and a final payment of 
150.12  ten percent by July 15 of the subsequent fiscal year according 
150.13  to section 127A.45, subdivision 10. 
150.14     Subd. 8.  [DEBT SERVICE PRIORITY.] Of the amount paid under 
150.15  this section, the district must first allocate the amount 
150.16  attributable to obligations under chapter 475.  Remaining aid 
150.17  may be used for the other purposes of this section. 
150.18     <i>(Effective date:  Section 1 (123B.53) is effective the day</i> 
150.19  <i>following final enactment.)</i> 
150.20     Sec. 2.  Minnesota Statutes 1998, section 123B.54, is 
150.21  amended to read: 
150.22     123B.54 [DEBT SERVICE EQUALIZED FACILITIES APPROPRIATION.] 
150.23     (a) $35,480,000 in fiscal year 1998, $38,159,000 in fiscal 
150.24  year 1999, and $38,390,000 $32,534,000 in fiscal year 2000 2002 
150.25  and each year thereafter is appropriated from the general fund 
150.26  to the commissioner of children, families, and learning for 
150.27  payment of debt service equalization aid under section 123B.53.  
150.28  The 2000 2002 appropriation includes $3,842,000 $3,266,000 for 
150.29  1999 2001 and $34,548,000 $29,268,000 for 2000 2002. 
150.30     (b) The appropriations in paragraph (a) must be reduced by 
150.31  the amount of any money specifically appropriated for the same 
150.32  purpose in any year from any state fund. 
150.33     Sec. 3.  Minnesota Statutes 1998, section 123B.57, 
150.34  subdivision 1, is amended to read: 
150.35     Subdivision 1.  [HEALTH AND SAFETY PROGRAM.] To receive 
150.36  health and safety revenue for any fiscal year a district must 
151.1   submit to the commissioner an application for aid and levy 
151.2   revenue by the date determined by the commissioner.  The 
151.3   application may be for hazardous substance removal, fire and 
151.4   life safety code repairs, labor and industry regulated facility 
151.5   and equipment violations, and health, safety, and environmental 
151.6   management, including indoor air quality management.  The 
151.7   application must include a health and safety program adopted by 
151.8   the school district board.  The program must include the 
151.9   estimated cost, per building, of the program by fiscal 
151.10  year.  Upon approval through the adoption of a resolution by 
151.11  each of a cooperative unit's member school district board and 
151.12  the approval of the department of children, families, and 
151.13  learning, a school district may include its proportionate share 
151.14  of the costs of health and safety projects for cooperative units 
151.15  in its application. 
151.16     Sec. 4.  Minnesota Statutes 1998, section 123B.58, 
151.17  subdivision 3, is amended to read: 
151.18     Subd. 3.  [LEVY AUTHORITY REVENUE.] The district may levy 
151.19  is eligible for revenue up to $300,000 under this section, as 
151.20  approved by the commissioner.  The approved amount may be levied 
151.21  received over eight or fewer years. 
151.22     Sec. 5.  Minnesota Statutes 1998, section 123B.58, 
151.23  subdivision 4, is amended to read: 
151.24     Subd. 4.  [LEVY AUTHORITY REVENUE IN COMBINED DISTRICTS.] 
151.25  Notwithstanding subdivision 3, a district that has combined or 
151.26  consolidated may levy receive revenue up to 50 percent times 
151.27  $300,000 times the number of former districts that operated on 
151.28  June 30, 1991, in the area that now makes up the combined or 
151.29  consolidated district.  The approved amount is reduced by any 
151.30  amount levied under subdivision 3 in the consolidated or 
151.31  combined district or in the former districts that make up the 
151.32  consolidated or combined district.  Levy authority under this 
151.33  subdivision expires at the same time as levy authority under 
151.34  subdivision 3. 
151.35     <i>(Effective date:  Section 5 (123B.58, subdivision 4) is</i> 
151.36  <i>effective the day following final enactment.)</i> 
152.1      Sec. 6.  Minnesota Statutes 1998, section 123B.59, is 
152.2   amended to read: 
152.3      123B.59 [ALTERNATIVE FACILITIES BONDING AND LEVY REVENUE 
152.4   PROGRAM.] 
152.5      Subdivision 1.  [TO QUALIFY.] An independent or special 
152.6   school district qualifies to participate in the alternative 
152.7   facilities bonding and levy revenue program if the district has: 
152.8      (1) more than 66 students per grade; 
152.9      (2) over 1,850,000 square feet of space; 
152.10     (3) average age of building space is 20 15 years or older; 
152.11     (4) insufficient funds from projected health and safety 
152.12  revenue and capital facilities revenue to meet the requirements 
152.13  for deferred maintenance, to make accessibility improvements, or 
152.14  to make fire, safety, or health repairs; and 
152.15     (5) a ten-year facility plan approved by the commissioner 
152.16  according to subdivision 2. 
152.17     Subd. 2.  [TEN-YEAR PLAN.] (a) A qualifying district must 
152.18  have a ten-year facility plan approved by the commissioner that 
152.19  includes an inventory of projects and costs that would be 
152.20  eligible for: 
152.21     (1) health and safety revenue; 
152.22     (2) disabled access levy; and 
152.23     (3) deferred capital expenditures and maintenance projects 
152.24  necessary to prevent further erosion of facilities. 
152.25     (b) The school district must: 
152.26     (1) annually update the plan; 
152.27     (2) biennially submit a facility maintenance plan; and 
152.28     (3) indicate whether the district will issue bonds to 
152.29  finance the plan or levy annually include program revenue under 
152.30  the facilities equalization program, under section 123B.53, for 
152.31  the costs. 
152.32     Subd. 3.  [BOND AUTHORIZATION.] A school district, upon 
152.33  approval of its board and the commissioner, may issue general 
152.34  obligation bonds under this section to finance approved 
152.35  facilities plans.  Chapter 475, except sections 475.58 and 
152.36  475.59, must be complied with.  The district may levy under 
153.1   subdivision 5 for the debt service revenue.  The authority to 
153.2   issue bonds under this section is in addition to any bonding 
153.3   authority authorized by this chapter, or other law.  The amount 
153.4   of bonding authority authorized under this section must be 
153.5   disregarded in calculating the bonding or net debt limits of 
153.6   this chapter, or any other law other than section 475.53, 
153.7   subdivision 4.  
153.8      Subd. 3a.  [INTEGRATION REVENUE.] (a) A school district 
153.9   that is participating in an interdistrict magnet school program 
153.10  and qualifies for revenue under subdivision 1 may add to its 
153.11  health and safety revenue and deferred maintenance revenue 
153.12  amounts under subdivision 1 its proportionate share of any 
153.13  health and safety costs and deferred maintenance costs 
153.14  attributable to its participation in an interdistrict magnet 
153.15  program. 
153.16     (b) Notwithstanding subdivision 1, a school district that 
153.17  is participating in an interdistrict magnet school program but 
153.18  does not qualify for revenue under subdivision 1 may participate 
153.19  in the alternative facilities revenue program only for the 
153.20  purpose of financing its proportionate share of health and 
153.21  safety and deferred maintenance costs associated with the 
153.22  interdistrict magnet school and may receive revenue under 
153.23  subdivision 5 for that purpose. 
153.24     Subd. 4.  [LEVY REVENUE PROHIBITED FOR CAPITAL PROJECTS.] A 
153.25  district that participates in the alternative facilities bonding 
153.26  and levy revenue program is not eligible to levy and cannot 
153.27  receive aid for revenue under sections 123B.57 and 123B.58 for 
153.28  any capital projects funded under this section.  A district 
153.29  may levy and receive aid for health and safety receive revenue 
153.30  for environmental management costs and health and safety 
153.31  regulatory, hazard assessment, record keeping, and maintenance 
153.32  programs as defined in section 123A.443 123B.57, subdivision 2, 
153.33  and approved by the commissioner. 
153.34     Subd. 5.  [LEVY REVENUE AUTHORIZED.] A district, after 
153.35  local board approval, may levy receive revenue for costs related 
153.36  to an approved facility plan as follows:  
154.1      (a) if the district has indicated to the commissioner that 
154.2   bonds will be issued, the district may levy receive revenue for 
154.3   the principal and interest payments on outstanding bonds issued 
154.4   according to subdivision 3 after reduction for any alternative 
154.5   facilities aid receivable under subdivision 6; or 
154.6      (b) if the district has indicated to the commissioner that 
154.7   the plan will be funded through levy authorized under section 
154.8   123B.53, subdivision 5, the district may levy according to the 
154.9   schedule approved in the plan after reduction for any 
154.10  alternative facilities aid receivable under subdivision 6. 
154.11     Subd. 6.  [ALTERNATIVE FACILITIES AID.] A district's 
154.12  alternative facilities aid is the amount equal to the district's 
154.13  annual debt service costs, provided that the amount does not 
154.14  exceed the amount certified to be levied for those purposes for 
154.15  taxes payable in 1997, or for a district that made a levy under 
154.16  subdivision 5, paragraph (b), the lesser of the district's 
154.17  annual levy amount, or one-sixth of the amount of levy that it 
154.18  certified for that purpose for taxes payable in 1998. 
154.19     Subd. 7.  [ALTERNATIVE FACILITIES APPROPRIATION.] (a) An 
154.20  amount not to exceed $19,700,000 for fiscal year 2000 and 
154.21  $20,000,000 for fiscal year 2001 and each year thereafter is 
154.22  appropriated from the general fund to the commissioner of 
154.23  children, families, and learning for payment of alternative 
154.24  facilities aid under subdivision 6.  
154.25     (b) The appropriation in paragraph (a) must be reduced by 
154.26  the amount of any money specifically appropriated for the same 
154.27  purpose in any year from any state fund. 
154.28     Subd. 8.  [SEPARATE ACCOUNT.] A district must establish a 
154.29  separate account under the uniform financial accounting and 
154.30  reporting standards (UFARS) for this program.  If the district's 
154.31  levy revenue exceeds the necessary interest and principal 
154.32  payments and noncapital health and safety costs, the district 
154.33  must reserve the revenue to replace future bonding authority, 
154.34  prepay bonds authorized under this program, or make payments on 
154.35  principal and interest. 
154.36     <i>(Effective date:  Section 6 (123B.59) is effective the day</i> 
155.1   <i>following final enactment.)</i> 
155.2      Sec. 7.  Minnesota Statutes 1998, section 123B.61, is 
155.3   amended to read: 
155.4      123B.61 [PURCHASE OF CERTAIN EQUIPMENT.] 
155.5      The board of a district may issue general obligation 
155.6   certificates of indebtedness or capital notes subject to the 
155.7   district debt limits to purchase:  (a) purchase vehicles, 
155.8   computers, telephone systems, cable equipment, photocopy and 
155.9   office equipment, technological equipment for instruction, and 
155.10  other capital equipment having an expected useful life at least 
155.11  as long as the terms of the certificates or 
155.12  notes; and (b) purchase computer hardware and software, without 
155.13  regard to its expected useful life, whether bundled with 
155.14  machinery or equipment or unbundled, together with application 
155.15  development services and training related to the use of the 
155.16  computer; and (c) prepay special assessments.  The certificates 
155.17  or notes must be payable in not more than five years and must be 
155.18  issued on the terms and in the manner determined by the 
155.19  board.  Except, certificates or notes issued to prepay special 
155.20  assessments must be payable in not more than 20 years.  The 
155.21  certificates or notes may be issued by resolution and without 
155.22  the requirement for an election.  The certificates or notes are 
155.23  general obligation bonds for purposes of section 126C.55.  A tax 
155.24  levy must be made for the payment of the principal and interest 
155.25  on the certificates or notes, in accordance with section 475.61, 
155.26  as in the case of bonds.  The sum of the tax levies under this 
155.27  section and section 123B.62 for each year must not exceed the 
155.28  amount of the district's total operating capital revenue for the 
155.29  year the initial debt service levies are certified.  The 
155.30  district's general education levy for each year must be reduced 
155.31  by the sum of (1) the amount of the tax levies for debt service 
155.32  certified for each year for payment of the principal and 
155.33  interest on the certificates or notes as required by section 
155.34  475.61, and (2) any excess amount in the debt redemption fund 
155.35  used to retire certificates or notes issued after April 1, 1997, 
155.36  other than amounts used to pay capitalized interest.  A district 
156.1   using an excess amount in the debt redemption fund to retire the 
156.2   certificates or notes shall report the amount used for this 
156.3   purpose to the commissioner by July 15 of the following fiscal 
156.4   year.  A district having an outstanding capital loan under 
156.5   section 126C.69 or an outstanding debt service loan under 
156.6   section 126C.68 must not use an excess amount in the debt 
156.7   redemption fund to retire the certificates or notes. 
156.8      <i>(Effective date:  Section 7 (123B.61) is effective the day</i> 
156.9   <i>following final enactment.)</i> 
156.10     Sec. 8.  Minnesota Statutes 1998, section 123B.63, 
156.11  subdivision 3, is amended to read: 
156.12     Subd. 3.  [FACILITIES DOWN PAYMENT LEVY REVENUE 
156.13  REFERENDUM.] A district may levy the local tax rate receive 
156.14  revenue under the facilities equalization program for the 
156.15  purposes of financing a school construction project or to pay 
156.16  for the lease on a new school building used primarily for 
156.17  regular kindergarten, elementary, or secondary instruction if 
156.18  authorization is approved by a majority of the electors voting 
156.19  on the question to provide funds for a down payment for an 
156.20  approved project.  The election must take place no more than 
156.21  five years before the estimated date of commencement of the 
156.22  project.  The referendum must be held on a date set by the 
156.23  board.  A referendum for a project not receiving a positive 
156.24  review and comment by the commissioner under section 123B.71 
156.25  must be approved by at least 60 percent of the voters voting on 
156.26  the question at the election.  The referendum may be called by 
156.27  the school board and may be held: 
156.28     (1) separately, before an election for the issuance of 
156.29  obligations for the project under chapter 475; or 
156.30     (2) in conjunction with an election for the issuance of 
156.31  obligations for the project under chapter 475; or 
156.32     (3) notwithstanding section 475.59, as a conjunctive 
156.33  question authorizing both the down payment levy revenue and the 
156.34  issuance of obligations for the project under chapter 475.  Any 
156.35  obligations authorized for a project may be issued within five 
156.36  years of the date of the election. 
157.1      The ballot must provide a general description of the 
157.2   proposed project, state the estimated total cost of the project, 
157.3   state whether the project has received a positive or 
157.4   negative unfavorable review and comment from the commissioner, 
157.5   state the maximum amount of the down payment equalized facility 
157.6   levy as a percentage of net tax capacity, state the amount that 
157.7   will be raised by that local tax rate in the first year it is to 
157.8   be levied, and state the maximum number of years that the levy 
157.9   authorization will apply. 
157.10     The ballot must contain a textual portion with the 
157.11  information required in this section and a question stating 
157.12  substantially the following: 
157.13     "Shall the down payment equalized facility levy proposed by 
157.14  the board of .......... School District No. .......... be 
157.15  approved?" 
157.16     If approved, the amount provided by the approved local tax 
157.17  rate applied to the net tax capacity for the year preceding the 
157.18  year the levy is certified may be certified for the number of 
157.19  years approved. 
157.20     In the event a conjunctive question proposes to authorize 
157.21  both the down payment equalized facilities levy, under section 
157.22  123B.53, and the issuance of obligations for the project, 
157.23  appropriate language authorizing the issuance of obligations 
157.24  must also be included in the question.  
157.25     The district must notify the commissioner of the results of 
157.26  the referendum. 
157.27     <i>(Effective date:  Section 8 (123B.63, subdivision 3) is</i> 
157.28  <i>effective the day following final enactment.)</i> 
157.29     Sec. 9.  Minnesota Statutes 1998, section 123B.63, 
157.30  subdivision 4, is amended to read: 
157.31     Subd. 4.  [EXCESS BUILDING CONSTRUCTION FUND LEVY 
157.32  PROCEEDS.] (a) For the purpose of a school construction project, 
157.33  any funds remaining in the down payment account that are not 
157.34  applied to the payment of the costs of the approved project 
157.35  before its final completion must be transferred to the 
157.36  district's debt redemption fund.  
158.1      (b) For the purpose of a leased building, any funds that 
158.2   are not applied to the payment of the lease at the termination 
158.3   of the lease must be transferred to the district's debt 
158.4   redemption fund. 
158.5      <i>(Effective date:  Section 9 (123B.63, subdivision 4) is</i> 
158.6   <i>effective the day following final enactment.)</i> 
158.7      Sec. 10.  Minnesota Statutes 1998, section 124D.88, 
158.8   subdivision 3, is amended to read: 
158.9      Subd. 3.  [GRANT APPLICATION PROCESS.] (a) Any group of 
158.10  school districts that meets the criteria required under 
158.11  paragraph (b)(i) may apply for a magnet school grant in an 
158.12  amount not to exceed $15,000,000 $20,800,000 for the approved 
158.13  costs or expansion of a magnet school facility. 
158.14     (b)(i) Any group of districts that submits an application 
158.15  for a grant shall submit a proposal to the commissioner for 
158.16  review and comment under section 123B.71, and the commissioner 
158.17  shall prepare a review and comment on the proposed magnet school 
158.18  facility, regardless of the amount of the capital expenditure 
158.19  required to design, acquire, construct, remodel, improve, 
158.20  furnish, or equip the facility.  The commissioner must not 
158.21  approve an application for a magnet school grant for any 
158.22  facility unless the facility receives a favorable review and 
158.23  comment under section 123B.71 and the participating districts: 
158.24     (1) establish a joint powers board under section 471.59 to 
158.25  represent all participating districts and govern the magnet 
158.26  school facility; 
158.27     (2) design the planned magnet school facility to meet the 
158.28  applicable requirements contained in Minnesota Rules, chapter 
158.29  3535; 
158.30     (3) submit a statement of need, including reasons why the 
158.31  magnet school will facilitate integration and improve learning; 
158.32     (4) prepare an educational plan that includes input from 
158.33  both community and professional staff; and 
158.34     (5) develop an education program that will improve learning 
158.35  opportunities for students attending the magnet school. 
158.36     (ii) The districts may develop a plan that permits social 
159.1   service, health, and other programs serving students and 
159.2   community residents to be located within the magnet school 
159.3   facility.  The commissioner shall consider this plan when 
159.4   preparing a review and comment on the proposed facility.  
159.5      (c) When two or more districts enter into an agreement 
159.6   establishing a joint powers board to govern the magnet school 
159.7   facility, all member districts shall have the same powers.  
159.8      (d) A joint powers board of participating school districts 
159.9   established under paragraphs (b) and (c) that intends to apply 
159.10  for a grant must adopt a resolution stating the costs of the 
159.11  proposed project, the purpose for which the debt is to be 
159.12  incurred, and an estimate of the dates when the contracts for 
159.13  the proposed project will be completed.  A copy of the 
159.14  resolution must accompany any application for a state grant 
159.15  under this section. 
159.16     (e)(i) The commissioner shall examine and consider all 
159.17  grant applications.  If the commissioner finds that any joint 
159.18  powers district is not a qualified grant applicant, the 
159.19  commissioner shall promptly notify that joint powers board.  The 
159.20  commissioner shall make awards to no more than two qualified 
159.21  applicants whose applications have been on file with the 
159.22  commissioner more than 30 days.  
159.23     (ii) A grant award is subject to verification by the joint 
159.24  powers board under paragraph (f).  A grant award must not be 
159.25  made until the participating districts determine the site of the 
159.26  magnet school facility.  If the total amount of the approved 
159.27  applications exceeds the amount of grant funding that is or can 
159.28  be made available, the commissioner shall allot the available 
159.29  amount equally between the approved applicant districts.  The 
159.30  commissioner shall promptly certify to each qualified joint 
159.31  powers board the amount, if any, of the grant awarded to it. 
159.32     (f) Each grant must be evidenced by a contract between the 
159.33  joint powers board and the state acting through the 
159.34  commissioner.  The contract obligates the state to pay to the 
159.35  joint powers board an amount computed according to paragraph 
159.36  (e)(ii) and a schedule, and terms and conditions acceptable to 
160.1   the commissioner of finance. 
160.2      <i>(Effective date:  Section 10 (124D.88, subdivision 3) is</i> 
160.3   <i>effective the day following final enactment.)</i> 
160.4      Sec. 11.  Minnesota Statutes 1998, section 125B.20, is 
160.5   amended to read: 
160.6      125B.20 [TELECOMMUNICATION ACCESS GRANT AND STATEWIDE 
160.7   COORDINATION.] 
160.8      Subdivision 1.  [ESTABLISHMENT; PURPOSE.] The purpose of 
160.9   developing a statewide school district telecommunications 
160.10  network is to expand the availability of a broad range of 
160.11  courses and degrees to students throughout the state, to share 
160.12  information resources to improve access, quality, and 
160.13  efficiency, to improve learning, and distance cooperative 
160.14  learning opportunities, and to promote the exchange of ideas 
160.15  among students, parents, teachers, media generalists, 
160.16  librarians, and the public.  In addition, through the 
160.17  development of this statewide telecommunications network 
160.18  emphasizing cost-effective, competitive connections, all 
160.19  Minnesotans will benefit by enhancing access to 
160.20  telecommunications technology throughout the state.  Network 
160.21  connections for school districts and public libraries will be 
160.22  are coordinated and fully integrated into the existing state 
160.23  telecommunications and interactive television networks to 
160.24  achieve comprehensive and efficient interconnectivity of school 
160.25  districts and libraries to higher education institutions, state 
160.26  agencies, other governmental units, agencies, and institutions 
160.27  throughout Minnesota.  A school district may apply to the 
160.28  commissioner for a grant under subdivision 2, and a regional 
160.29  public library may apply under subdivision 3.  The Minnesota 
160.30  education telecommunication council established in Laws 1995, 
160.31  First Special Session chapter 3, article 12, section 7, shall 
160.32  establish priorities for awarding grants, making grant awards, 
160.33  and being responsible for the coordination of networks. 
160.34     Subd. 2.  [SCHOOL DISTRICT TELECOMMUNICATIONS GRANT.] (a) 
160.35  Priority will be given to a school district that has not 
160.36  received access to interactive video, data connection, or both 
161.1   under the telecommunications access grant program.  Districts 
161.2   may apply for a grant under this subdivision to:  (1) establish 
161.3   connections among school districts, and between school districts 
161.4   and the state information infrastructure administered by the 
161.5   department of administration under section 16B.465; or (2) if 
161.6   such a connection meeting minimum electronic connectivity 
161.7   standards is already established, enhance telecommunications 
161.8   capacity for a school district.  The minimum standards of 
161.9   capacity are a 56 kilobyte data line and 768 kilobyte ITV 
161.10  connection, subject to change based on the recommendations by 
161.11  the Minnesota education telecommunications council.  A district 
161.12  may submit a grant application for interactive television with 
161.13  higher capacity connections in order to maintain multiple 
161.14  simultaneous connections.  To ensure coordination among school 
161.15  districts, a school district must submit its grant application 
161.16  to the council through an organization that coordinates the 
161.17  applications and connections of at least ten school districts or 
161.18  through an existing technology cooperative the 
161.19  telecommunications access grant cluster of which the district is 
161.20  a member.  
161.21     (b) The application must, at a minimum, contain information 
161.22  to document for each applicant school district the following: 
161.23     (1) that the proposed connection meets the minimum 
161.24  standards and employs an open network architecture that will 
161.25  ensure interconnectivity and interoperability with other 
161.26  education institutions and libraries; 
161.27     (2) that the proposed connection and system will be 
161.28  connected to the state information infrastructure through the 
161.29  department of administration under section 16B.465 and that a 
161.30  network service and management agreement is in place; 
161.31     (3) that the proposed connection and system will be 
161.32  connected to the higher education telecommunication network and 
161.33  that a governance agreement has been adopted which includes 
161.34  agreements between the school district system, a higher 
161.35  education regional council, libraries, and coordinating 
161.36  entities; 
162.1      (4) the telecommunication vendor selected to provide 
162.2   service from the district to a state information infrastructure 
162.3   hub or to a more cost-effective connection point to the state 
162.4   information infrastructure; and 
162.5      (5) other information, as determined by the commissioner in 
162.6   consultation with the education telecommunications council, to 
162.7   ensure that connections are coordinated, meet state standards 
162.8   and are cost-effective, and that service is provided in an 
162.9   efficient and cost-effective manner. 
162.10     (c) A school district may include, in its grant 
162.11  application, telecommunications access for collaboration with 
162.12  nonprofit arts organizations for the purpose of educational 
162.13  programs, or access for a secondary media center that:  (1) is a 
162.14  member of a multitype library system; (2) is open during periods 
162.15  of the year when classroom instruction is occurring; and (3) has 
162.16  licensed school media staff on site. 
162.17     (d) The Minnesota education telecommunications council 
162.18  shall award grants and the funds shall be dispersed by the 
162.19  commissioner.  The highest priority for these grants shall be to 
162.20  bring school districts up to the minimum connectivity standards. 
162.21  A grant to enhance telecommunications capacity beyond the 
162.22  minimum connectivity standards shall be no more than 75 percent 
162.23  of the maximum grant under this subdivision.  Grant applications 
162.24  for minimum connection and enhanced telecommunications capacity 
162.25  grants must be submitted to the commissioner by a coordinating 
162.26  organization including, but not limited to, service cooperatives 
162.27  and education districts.  Grant applications must be submitted 
162.28  to the commissioner by a telecommunications access grant cluster 
162.29  organization.  For the purposes of the grant, a school district 
162.30  may include a charter school under section 124D.10, or the 
162.31  Faribault academies.  Based on the award made by the council, 
162.32  all grants under this subdivision shall be paid by the 
162.33  commissioner directly to a school district (unless this 
162.34  application requests that the funds be paid to the coordinating 
162.35  agency).  Nonpublic schools as defined in section 237.065, 
162.36  subdivision 2, located within the district may access the 
163.1   network.  The nonpublic school is responsible for actual costs 
163.2   for connection from the school to the access site. 
163.3      (e) Money awarded under this section may be used only for 
163.4   the purposes explicitly stated in the grant application. 
163.5      Subd. 3.  [REGIONAL LIBRARY TELECOMMUNICATION GRANT.] (a) A 
163.6   regional public library system may apply for a telecommunication 
163.7   access grant.  Priority will be given to public libraries that 
163.8   have not received access to data connection under the 
163.9   telecommunications access grant program.  The grant must be used 
163.10  to create or expand the capacity of electronic data access and 
163.11  connect the library system with the state information 
163.12  infrastructure administered by the department of administration 
163.13  under section 16B.465.  Connections must meet minimum system 
163.14  standards of a 56 kilobyte data line and 768 kilobyte ITV 
163.15  connection.  To be eligible for a telecommunications access 
163.16  grant, a regional public library system must:  (1) meet the 
163.17  level of local support required under section 134.34; and (2) be 
163.18  open at least 20 hours per week. 
163.19     (b) Any grant award under this subdivision may not be used 
163.20  to substitute for any existing local funds allocated to provide 
163.21  electronic access, or equipment for library staff or the public, 
163.22  or local funds previously dedicated to other library operations. 
163.23     (c) An application for a regional public library 
163.24  telecommunications access grant must, at a minimum, contain 
163.25  information to document the following: 
163.26     (1) that the connection meets the minimum standards and 
163.27  employs an open network architecture that will ensure 
163.28  interconnectivity and interoperability with other libraries and 
163.29  the educational system; 
163.30     (2) that the connection is being established through the 
163.31  most cost-effective means and that the public library has 
163.32  explored and coordinated connections through school districts or 
163.33  other governmental agencies; 
163.34     (3) that the proposed connection and system will be 
163.35  connected to the state information infrastructure through the 
163.36  department of administration under section 16B.465 and that a 
164.1   network service and management agreement is in place; 
164.2      (4) that the proposed connection and system will be 
164.3   connected to the higher education and to the school district 
164.4   telecommunication networks subject to a governance agreement 
164.5   with one or more school districts and a higher education 
164.6   regional council specifying how the system will be coordinated; 
164.7      (5) the telecommunication vendor selected to provide 
164.8   service from the library to a state information infrastructure 
164.9   hub or through a more cost-effective connection point to the 
164.10  state information infrastructure; and 
164.11     (6) other information, as determined by the commissioner, 
164.12  to ensure that connections are coordinated, meet state 
164.13  standards, are cost-effective, and that service is provided in 
164.14  an efficient and cost-effective manner so that libraries 
164.15  throughout the state are connected in as seamless a manner as 
164.16  technically possible. 
164.17     Subd. 4.  [AWARD OF GRANTS.] The council shall develop 
164.18  application forms and procedures for school district minimum 
164.19  connectivity grants, enhanced telecommunications grants, and 
164.20  regional library telecommunication access grants.  The council 
164.21  shall select the grant recipient and shall promptly notify any 
164.22  applicant that is found not to be qualified.  The commissioner 
164.23  shall make the grant payments directly to the school district or 
164.24  regional library system.  At the request of the district or 
164.25  regional library system, the commissioner may make the grant 
164.26  payment directly to the coordinating organization.  If 
164.27  appropriations are insufficient to fund all applications, the 
164.28  commissioner shall first fully fund the minimum connectivity 
164.29  grants.  Unsuccessful applicants may reapply for a grant. 
164.30     Subd. 5.  [E-RATES.] The telecommunication access grant 
164.31  clusters are required to file e-rate applications for 
164.32  telecommunication access grant-related expenditures on behalf of 
164.33  grant participants in their clusters.  Discounts received on 
164.34  telecommunication access grant expenditures shall be used to 
164.35  offset or reduce operations funding provided by the state. 
164.36     Sec. 12.  Minnesota Statutes 1998, section 126C.40, 
165.1   subdivision 1, is amended to read: 
165.2      Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
165.3   district finds it economically advantageous to rent or lease a 
165.4   building or land for any instructional purposes or for school 
165.5   storage or furniture repair, and it determines that the 
165.6   operating capital revenue authorized under section 126C.10, 
165.7   subdivision 13, is insufficient for this purpose, it may apply 
165.8   to the commissioner for permission to make an additional capital 
165.9   expenditure levy increase its equalized facilities revenue under 
165.10  section 123B.53, subdivision 5, for this purpose.  An 
165.11  application for permission to levy under this subdivision 
165.12  increase the equalized facilities revenue must contain financial 
165.13  justification for the proposed levy increase, the terms and 
165.14  conditions of the proposed lease, and a description of the space 
165.15  to be leased and its proposed use.  
165.16     (b) The criteria for approval of applications to levy under 
165.17  this subdivision must include:  the reasonableness of the price, 
165.18  the appropriateness of the space to the proposed activity, the 
165.19  feasibility of transporting pupils to the leased building or 
165.20  land, conformity of the lease to the laws and rules of the state 
165.21  of Minnesota, and the appropriateness of the proposed lease to 
165.22  the space needs and the financial condition of the district.  
165.23  The commissioner must not authorize a levy revenue under this 
165.24  subdivision in an amount greater than the cost to the district 
165.25  of renting or leasing a building or land for approved purposes.  
165.26  The proceeds of this levy must not be used for custodial or 
165.27  other maintenance services.  A district may not levy receive 
165.28  revenue under this subdivision for the purpose of leasing or 
165.29  renting a district-owned building or site to itself. 
165.30     (c) For agreements finalized after July 1, 1997, a district 
165.31  may not levy receive revenue under this subdivision for the 
165.32  purpose of leasing:  (1) a newly constructed building used 
165.33  primarily for regular kindergarten, elementary, or secondary 
165.34  instruction; or (2) a newly constructed building addition or 
165.35  additions used primarily for regular kindergarten, elementary, 
165.36  or secondary instruction that contains more than 20 percent of 
166.1   the square footage of the previously existing building. 
166.2      (d) The total levy revenue under this subdivision for a 
166.3   district for any year must not exceed $100 times the resident 
166.4   adjusted pupil units for the fiscal year to which the levy is 
166.5   attributable. 
166.6      (e) For agreements for which a review and comment have been 
166.7   submitted to the department of children, families, and learning 
166.8   after April 1, 1998, the term "instructional purpose" as used in 
166.9   this subdivision excludes expenditures on stadiums. 
166.10     <i>(Effective date:  Section 12 (126C.40, subdivision 1) is</i> 
166.11  <i>effective the day following final enactment.)</i> 
166.12     Sec. 13.  Minnesota Statutes 1998, section 126C.40, 
166.13  subdivision 2, is amended to read: 
166.14     Subd. 2.  [PRE-JULY 1990 LEASE PURCHASE, INSTALLMENT BUYS.] 
166.15  A district may annually levy increase the amount of its 
166.16  equalized facilities revenue needed to make payments required by 
166.17  a lease purchase agreement, installment purchase agreement, or 
166.18  other deferred payment agreement authorized by Minnesota 
166.19  Statutes 1989 Supplement, section 465.71, if:  
166.20     (1) the agreement was approved by the commissioner before 
166.21  July 1, 1990, according to Minnesota Statutes 1989 Supplement, 
166.22  section 275.125, subdivision 11d; or 
166.23     (2) the district levied in 1989 for the payments. 
166.24     <i>(Effective date:  Section 13 (126C.40, subdivision 2) is</i> 
166.25  <i>effective the day following final enactment.)</i> 
166.26     Sec. 14.  Minnesota Statutes 1998, section 126C.40, 
166.27  subdivision 3, is amended to read: 
166.28     Subd. 3.  [COOPERATING DISTRICTS.] A district that has an 
166.29  agreement according to section 123A.30 or 123A.32 may levy 
166.30  increase its equalized facilities revenue under section 123B.53, 
166.31  subdivision 5, for the repair costs, as approved by the 
166.32  department of a building located in another district that is a 
166.33  party to the agreement. 
166.34     <i>(Effective date:  Section 14 (126C.40, subdivision 3) is</i> 
166.35  <i>effective the day following final enactment.)</i> 
166.36     Sec. 15.  Minnesota Statutes 1998, section 126C.40, 
167.1   subdivision 4, is amended to read: 
167.2      Subd. 4.  [INTERACTIVE TELEVISION.] (a) A district with its 
167.3   central administrative office located within economic 
167.4   development region one, two, three, four, five, six, seven, 
167.5   eight, nine, and ten may apply to the commissioner for ITV 
167.6   revenue up to the greater of .5 .6 percent of the adjusted net 
167.7   tax capacity of the district or $25,000.  Eligible interactive 
167.8   television expenditures include the construction, maintenance, 
167.9   and lease costs of an interactive television system for 
167.10  instructional purposes.  An eligible school district that has 
167.11  completed the construction of its interactive television system 
167.12  may also purchase computer hardware and software used primarily 
167.13  for instructional purposes and access to the Internet provided 
167.14  that its total expenditures for interactive television 
167.15  maintenance and lease costs and for computer hardware and 
167.16  software under this subdivision do not exceed its interactive 
167.17  television revenue for fiscal year 1998.  The approval by the 
167.18  commissioner and the application procedures set forth in 
167.19  subdivision 1 shall apply to the revenue in this subdivision.  
167.20  In granting the approval, the commissioner shall consider 
167.21  whether the district is maximizing efficiency through peak use 
167.22  and off-peak use pricing structures. 
167.23     (b) To obtain ITV revenue, a district may levy an amount 
167.24  not to exceed the district's ITV revenue times the lesser of one 
167.25  or the ratio of: 
167.26     (1) the quotient derived by dividing the adjusted net tax 
167.27  capacity of the district for the year before the year the levy 
167.28  is certified by the resident adjusted pupil units in the 
167.29  district for the year to which the levy is attributable; to 
167.30     (2) $10,000 $8,404.  
167.31     (c) A district's ITV aid is the difference between its ITV 
167.32  revenue and the ITV levy. 
167.33     (d) The revenue in the first year after reorganization for 
167.34  a district that has reorganized under sections 123A.35 to 
167.35  123A.41, 123A.46, or 123A.48 shall be the greater of: 
167.36     (1) the revenue computed for the reorganized district under 
168.1   paragraph (a), or 
168.2      (2)(i) for two districts that reorganized, 75 percent of 
168.3   the revenue computed as if the districts involved in the 
168.4   reorganization were separate, or 
168.5      (ii) for three or more districts that reorganized, 50 
168.6   percent of the revenue computed as if the districts involved in 
168.7   the reorganization were separate. 
168.8      (e) The revenue in paragraph (d) is increased by the 
168.9   difference between the initial revenue and ITV lease costs for 
168.10  leases that had been entered into by the preexisting districts 
168.11  on the effective date of the consolidation or combination and 
168.12  with a term not exceeding ten years.  This increased revenue is 
168.13  only available for the remaining term of the lease.  However, in 
168.14  no case shall the revenue exceed the amount available had the 
168.15  preexisting districts received revenue separately. 
168.16     (f) Effective for fiscal year 2000, the revenue under this 
168.17  section shall be 75 percent of the amount determined in 
168.18  paragraph (a); for fiscal year 2001, 50 percent of the amount in 
168.19  paragraph (a); and for fiscal year 2002, 25 percent of the 
168.20  amount in paragraph (a). 
168.21     (g) This section subdivision expires effective for revenue 
168.22  for fiscal year 2003, or when leases in existence on the 
168.23  effective date of Laws 1997, First Special Session chapter 4, 
168.24  expire.  
168.25     <i>(Effective date:  Section 15 (126C.40, subdivision 4) is</i> 
168.26  <i>effective for revenue for fiscal year 2000 and later.)</i> 
168.27     Sec. 16.  Minnesota Statutes 1998, section 126C.40, 
168.28  subdivision 6, is amended to read: 
168.29     Subd. 6.  [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 
168.30  application to, and approval by, the commissioner in accordance 
168.31  with the procedures and limits in subdivision 1, paragraphs (a) 
168.32  and (b), a district, as defined in this subdivision, may: 
168.33     (1) purchase real or personal property under an installment 
168.34  contract or may lease real or personal property with an option 
168.35  to purchase under a lease purchase agreement, by which 
168.36  installment contract or lease purchase agreement title is kept 
169.1   by the seller or vendor or assigned to a third party as security 
169.2   for the purchase price, including interest, if any; and 
169.3      (2) annually levy increase its equalized facilities revenue 
169.4   under section 123B.53, subdivision 5, by the amounts necessary 
169.5   to pay the district's obligations under the installment contract 
169.6   or lease purchase agreement. 
169.7      (b) The obligation created by the installment contract or 
169.8   the lease purchase agreement must not be included in the 
169.9   calculation of net debt for purposes of section 475.53, and does 
169.10  not constitute debt under other law.  An election is not 
169.11  required in connection with the execution of the installment 
169.12  contract or the lease purchase agreement. 
169.13     (c) The proceeds of the levy equalized facilities revenue 
169.14  increase authorized by this subdivision must not be used to 
169.15  acquire a facility to be primarily used for athletic or school 
169.16  administration purposes. 
169.17     (d) For the purposes of this subdivision, "district" means: 
169.18     (1) a school district required to have a comprehensive plan 
169.19  for the elimination of segregation whose plan has been 
169.20  determined by the commissioner to be in compliance with the 
169.21  state board of education rules relating to equality of 
169.22  educational opportunity and school desegregation; or 
169.23     (2) a school district that participates in a joint program 
169.24  for interdistrict desegregation with a district defined in 
169.25  clause (1) if the facility acquired under this subdivision is to 
169.26  be primarily used for the joint program. 
169.27     (e) Notwithstanding subdivision 1, the prohibition against 
169.28  a levy by a district to lease receiving revenue for the purpose 
169.29  of leasing or rent renting a district-owned building to itself 
169.30  does not apply to levies revenues otherwise authorized by this 
169.31  subdivision. 
169.32     (f) For the purposes of this subdivision, any references in 
169.33  subdivision 1 to building or land shall include personal 
169.34  property. 
169.35     <i>(Effective date:  Section 16 (126C.40, subdivision 6) is</i> 
169.36  <i>effective the day following final enactment.)</i> 
170.1      Sec. 17.  Minnesota Statutes 1998, section 126C.55, is 
170.2   amended by adding a subdivision to read: 
170.3      Subd. 10.  [CONTINUING DISCLOSURE AGREEMENTS.] The 
170.4   commissioner of finance may enter into written agreements or 
170.5   contracts relating to the continuing disclosure of information 
170.6   necessary to facilitate the issuance of debt obligations by 
170.7   school districts in accordance with federal securities laws, 
170.8   rules, and regulations, including securities and exchange 
170.9   commission rules and regulations, section 240.15c2-12.  Such 
170.10  agreements or contracts may be in any form deemed reasonable and 
170.11  in the best interests of the state by the commissioner of 
170.12  finance. 
170.13     <i>(Effective date:  Section 17 (126C.55, subdivision 10) is</i> 
170.14  <i>effective the day following final enactment.)</i> 
170.15     Sec. 18.  Minnesota Statutes 1998, section 126C.63, 
170.16  subdivision 8, is amended to read: 
170.17     Subd. 8.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 
170.18  effort debt service levy" means the lesser of: 
170.19     (1) a levy in whichever of the following amounts is 
170.20  applicable: 
170.21     (a) in any district receiving a debt service loan for a 
170.22  debt service levy payable in 1991 and thereafter, or granted a 
170.23  capital loan after January 1, 1990, a levy in a total dollar 
170.24  amount computed at a rate of 20 24 percent of adjusted net tax 
170.25  capacity for taxes payable in 1991 and thereafter; 
170.26     (b) in any district granted a debt service loan after July 
170.27  31, 1981, or granted a capital loan which is approved after July 
170.28  31, 1981, a levy in a total dollar amount computed as a tax rate 
170.29  of 13.08 percent on the adjusted gross tax capacity for taxes 
170.30  payable in 1990 or a tax rate of 18.42 21.92 percent on the 
170.31  adjusted net tax capacity for taxes payable in 1991 and 
170.32  thereafter; 
170.33     (c) in any district granted a debt service loan before 
170.34  August 1, 1981, or granted a capital loan which was approved 
170.35  before August 1, 1981, a levy in a total dollar amount computed 
170.36  as a tax rate of 12.26 percent on the adjusted gross tax 
171.1   capacity for taxes payable in 1990 or a tax rate of 17.17 
171.2   percent on the adjusted net tax capacity for taxes payable in 
171.3   1991 and thereafter, until and unless the district receives an 
171.4   additional loan; or 
171.5      (2) a levy in whichever of the following amounts is 
171.6   applicable: 
171.7      (a) in any district which received a debt service or 
171.8   capital loan from the state before January 1, 1965, a levy in a 
171.9   total dollar amount computed as 4.10 mills on the market value 
171.10  in each year, unless the district applies or has applied for an 
171.11  additional loan subsequent to January 1, 1965, or issues or has 
171.12  issued bonds on the public market, other than bonds refunding 
171.13  state loans, subsequent to January 1, 1967; 
171.14     (b) in any district granted a debt service or capital loan 
171.15  between January 1, 1965, and July 1, 1969, a levy in a total 
171.16  dollar amount computed as 5-1/2 mills on the market value in 
171.17  each year, until and unless the district receives an additional 
171.18  loan; 
171.19     (c) in any district granted a debt service or capital loan 
171.20  between July 1, 1969, and July 1, 1975, a levy in a total dollar 
171.21  amount computed as 6.3 mills on market value in each year until 
171.22  and unless the district has received an additional loan; 
171.23     (d) in any district for which a capital loan was approved 
171.24  prior to August 1, 1981, a levy in a total dollar amount equal 
171.25  to the sum of the amount of the required debt service levy and 
171.26  an amount which when levied annually will in the opinion of the 
171.27  commissioner be sufficient to retire the remaining interest and 
171.28  principal on any outstanding loans from the state within 30 
171.29  years of the original date when the capital loan was granted.  
171.30     The board in any district affected by the provisions of 
171.31  clause (2)(d) may elect instead to determine the amount of its 
171.32  levy according to the provisions of clause (1).  If a district's 
171.33  capital loan is not paid within 30 years because it elects to 
171.34  determine the amount of its levy according to the provisions of 
171.35  clause (2)(d), the liability of the district for the amount of 
171.36  the difference between the amount it levied under clause (2)(d) 
172.1   and the amount it would have levied under clause (1), and for 
172.2   interest on the amount of that difference, must not be satisfied 
172.3   and discharged pursuant to Minnesota Statutes 1988, or an 
172.4   earlier edition of Minnesota Statutes if applicable, section 
172.5   124.43, subdivision 4. 
172.6      <i>(Effective date:  Section 18 (126C.63, subdivision 8) is</i> 
172.7   <i>effective for revenue for fiscal year 2000 and later.)</i> 
172.8      Sec. 19.  Minnesota Statutes 1998, section 126C.69, 
172.9   subdivision 2, is amended to read: 
172.10     Subd. 2.  [CAPITAL LOANS ELIGIBILITY.] Beginning July 
172.11  1, 1992 1999, a district is not eligible for a capital loan 
172.12  unless the district's estimated net debt tax rate as computed by 
172.13  the commissioner after debt service equalization aid would be 
172.14  more than 20 24 percent of adjusted net tax capacity.  The 
172.15  estimate must assume a 20-year maturity schedule for new debt. 
172.16     <i>(Effective date:  Section 19 (126C.69, subdivision 2) is</i> 
172.17  <i>effective for revenue for fiscal year 2000 and later.)</i> 
172.18     Sec. 20.  Minnesota Statutes 1998, section 126C.69, 
172.19  subdivision 9, is amended to read: 
172.20     Subd. 9.  [LOAN AMOUNT LIMITS.] (a) A loan must not be 
172.21  recommended for approval for a district exceeding an amount 
172.22  computed as follows: 
172.23     (1) the amount requested by the district under subdivision 
172.24  6; 
172.25     (2) plus the aggregate principal amount of general 
172.26  obligation bonds of the district outstanding on June 30 of the 
172.27  year following the year the application was received, not 
172.28  exceeding the limitation on net debt of the district in section 
172.29  475.53, subdivision 4, or 305 363 percent of its adjusted net 
172.30  tax capacity as most recently determined, whichever is less; 
172.31     (3) less the maximum net debt permissible for the district 
172.32  on December 1 of the year the application is received, under the 
172.33  limitation in section 475.53, subdivision 4, or 305 363 percent 
172.34  of its adjusted net tax capacity as most recently determined, 
172.35  whichever is less; 
172.36     (4) less any amount by which the amount voted exceeds the 
173.1   total cost of the facilities for which the loan is granted.  
173.2      (b) The loan may be approved in an amount computed as 
173.3   provided in paragraph (a), clauses (1) to (3), subject to later 
173.4   reduction according to paragraph (a), clause (4). 
173.5      Sec. 21.  Minnesota Statutes 1998, section 126C.69, 
173.6   subdivision 15, is amended to read: 
173.7      Subd. 15.  [BOND SALE LIMITATIONS.] A district having an 
173.8   outstanding state loan must not issue and sell any bonds on the 
173.9   public market, except to refund state loans, unless it agrees to 
173.10  make the maximum effort debt service levy in each later year at 
173.11  the higher rate provided in section 126C.63, subdivision 8, and 
173.12  unless it schedules the maturities of the bonds according to 
173.13  section 475.54, subdivision 2.  A district that refunds bonds at 
173.14  a lower interest rate may continue to make the maximum effort 
173.15  debt service levy in each later year at the current rate 
173.16  provided in section 126C.63, subdivision 8, if the district can 
173.17  demonstrate to the commissioner's satisfaction that the 
173.18  district's repayments of the state loan will not be reduced 
173.19  below the previous year's level.  The district must report each 
173.20  sale to the commissioner. 
173.21     After a district's capital loan has been outstanding for 20 
173.22  30 years, the district must not issue bonds on the public market 
173.23  except to refund the loan. 
173.24     Sec. 22.  Laws 1995, First Special Session chapter 3, 
173.25  article 12, section 7, as amended by Laws 1997, First Special 
173.26  Session chapter 4, article 9, section 2, Laws 1998, chapter 270, 
173.27  section 4, and Laws 1998, chapter 359, section 20, is amended to 
173.28  read: 
173.29     Sec. 7.  [MINNESOTA EDUCATION TELECOMMUNICATIONS COUNCIL.] 
173.30     Subdivision 1.  [STATE COUNCIL MEMBERSHIP.] The membership 
173.31  of the Minnesota education telecommunications council 
173.32  established in Laws 1993, First Special Session chapter 2, is 
173.33  expanded to include representatives of elementary and secondary 
173.34  education.  The membership shall consist of three 
173.35  representatives from the University of Minnesota; three 
173.36  representatives of the board of trustees for Minnesota state 
174.1   colleges and universities; one representative of the higher 
174.2   education services offices; one representative appointed by the 
174.3   private college council; one representative selected by the 
174.4   commissioner of administration; eight representatives selected 
174.5   by the commissioner of children, families, and learning, at 
174.6   least one of which must come from each of the six higher 
174.7   education telecommunication regions; a representative from the 
174.8   office of technology; two members each from the senate and the 
174.9   house of representatives selected by the subcommittee on 
174.10  committees of the committee on rules and administration of the 
174.11  senate and the speaker of the house, one member from each body 
174.12  must be a member of the minority party; and three 
174.13  representatives of libraries, one representing regional public 
174.14  libraries, one representing multitype libraries, and one 
174.15  representing community libraries, selected by the governor.  The 
174.16  council shall: 
174.17     (1) develop a statewide vision and plans for the use of 
174.18  distance learning technologies and provide leadership in 
174.19  implementing the use of such technologies; 
174.20     (2) recommend to the commissioner and the legislature by 
174.21  December 15, 1996, a plan for long-term governance and a 
174.22  proposed structure for statewide and regional 
174.23  telecommunications; 
174.24     (3) recommend educational policy relating to 
174.25  telecommunications; 
174.26     (4) (3) determine priorities for use; 
174.27     (5) (4) oversee coordination of networks for post-secondary 
174.28  campuses, K-12 kindergarten through grade 12 education, and 
174.29  regional and community libraries; 
174.30     (6) (5) review application for telecommunications access 
174.31  grants under Minnesota Statutes, section 124C.74 125B.20, and 
174.32  recommend to the department grants for funding; 
174.33     (7) (6) determine priorities for grant funding proposals; 
174.34  and 
174.35     (8) (7) work with the information policy office to ensure 
174.36  consistency of the operation of the learning network with 
175.1   standards of an open system architecture. 
175.2      The council shall consult with representatives of the 
175.3   telecommunication industry in implementing this section.  
175.4      Subd. 2.  [DISTRICT COUNCIL MEMBERSHIP.] District 
175.5   organizations that coordinate applications for telecommunication 
175.6   access grants are encouraged to become members of the regional 
175.7   higher education telecommunication council in their area. 
175.8      Subd. 3.  [CRITERIA.] In addition to responsibilities of 
175.9   the council under Laws 1993, First Special Session chapter 2, as 
175.10  amended, the telecommunications council shall evaluate grant 
175.11  applications under Minnesota Statutes, section 124C.74 and 
175.12  applications from district organizations using the following 
175.13  criteria: 
175.14     (1) evidence of cooperative arrangements with other 
175.15  post-secondary institutions, school districts, and community and 
175.16  regional libraries in the geographic region; 
175.17     (2) plans for shared classes and programs; 
175.18     (3) avoidance of network duplication; 
175.19     (4) evidence of efficiencies to be achieved in delivery of 
175.20  instruction due to use of telecommunications; 
175.21     (5) a plan for development of a list of all courses 
175.22  available in the region for delivery at a distance; 
175.23     (6) a plan for coordinating and scheduling courses; and 
175.24     (7) a plan for evaluation of costs, access, and outcomes. 
175.25     Sec. 23.  Laws 1997, First Special Session chapter 4, 
175.26  article 9, section 13, is amended to read: 
175.27     Sec. 13.  [REPEALER.] 
175.28     (a) Minnesota Statutes 1996, section 124C.74, is repealed 
175.29  effective July 1, 1999.  
175.30     (b) Minnesota Statutes 1996, section 134.46, is repealed. 
175.31     <i>(Effective date:  Section 23 (Laws 1997, First Special</i> 
175.32  <i>Session chapter 4, article 9, section 13) is effective June 30,</i> 
175.33  <i>1999.)</i> 
175.34     Sec. 24.  Laws 1998, chapter 404, section 5, subdivision 5, 
175.35  is amended to read: 
175.36  Subd. 5.  Metropolitan Magnet Schools                22,200,000 
176.1   For awarding metropolitan magnet school 
176.2   grants to groups of qualified 
176.3   metropolitan school districts under 
176.4   Minnesota Statutes, section 124C.498.  
176.5   $1,900,000 is for the completion of the 
176.6   Downtown Integration magnet school in 
176.7   Minneapolis. 
176.8   $3,800,000 is for planning, design, 
176.9   acquisition of land, architectural 
176.10  fees, and engineering fees for the East 
176.11  Metropolitan Integration magnet school 
176.12  in the East Metropolitan area.  Of that 
176.13  amount, $2,800,000 is for land 
176.14  acquisition and site development.  
176.15  $14,500,000 is for the construction of 
176.16  the Metropolitan Integration magnet 
176.17  school in Robbinsdale. 
176.18  $2,000,000 is for the Southwest 
176.19  Metropolitan Integration magnet school 
176.20  in Edina. 
176.21     <i>(Effective date:  Section 24 (Laws 1998, chapter 404,</i> 
176.22  <i>section 5, subdivision 5) is effective the day following final</i> 
176.23  <i>enactment.)</i> 
176.24     Sec. 25.  [MCGREGOR LEVY.] 
176.25     Beginning with taxes payable in 2000, independent school 
176.26  district No. 4, McGregor, may levy $32,000 each year for eight 
176.27  years for the amount of energy improvements that the district 
176.28  made with the intention of complying with Minnesota Statutes, 
176.29  section 216C.37. 
176.30     Sec. 26.  [HEALTH AND SAFETY; PROCTOR.] 
176.31     Notwithstanding any law to the contrary, independent school 
176.32  district No. 704, Proctor, may include in its health and safety 
176.33  program the amounts necessary to make health and safety 
176.34  improvements to an ice arena located within the district 
176.35  boundaries in order for the district to use the facility to meet 
176.36  the district's curriculum needs under the state graduation 
176.37  rule.  The district must attempt to renegotiate its lease 
176.38  agreement with the county that operates the arena before it is 
176.39  eligible for health and safety revenue under this section.  The 
176.40  total amount of revenue approved for this purpose shall not 
176.41  exceed $150,000. 
176.42     Sec. 27.  [DISTRICTS ELIGIBLE FOR ALTERNATIVE FACILITIES 
176.43  REVENUE PROGRAM.] 
177.1      Subdivision 1.  [INDEPENDENT SCHOOL DISTRICT NO. 834, 
177.2   STILLWATER.] Independent school district No. 834, Stillwater, is 
177.3   eligible for the alternative facilities revenue program under 
177.4   Minnesota Statutes, section 123B.59, for the purposes of 
177.5   financing school facilities in the district. 
177.6      Subd. 2.  [INDEPENDENT SCHOOL DISTRICT NO. 621, MOUNDS 
177.7   VIEW.] Independent school district No. 621, Mounds View, is 
177.8   eligible for the alternative facilities revenue program under 
177.9   Minnesota Statutes, section 123B.59, for the purposes of 
177.10  financing school facilities in the district. 
177.11     Subd. 3.  [INDEPENDENT SCHOOL DISTRICT NO. 622, NORTH ST. 
177.12  PAUL-MAPLEWOOD-OAKDALE.] Independent school district No. 622, 
177.13  North St. Paul-Maplewood-Oakdale, is eligible for the 
177.14  alternative facilities revenue program under Minnesota Statutes, 
177.15  section 123B.59, for the purposes of financing school facilities 
177.16  in the district. 
177.17     Subd. 4.  [INDEPENDENT SCHOOL DISTRICT NO. 624, WHITE BEAR 
177.18  LAKE.] Independent school district No. 624, White Bear Lake, is 
177.19  eligible for the alternative facilities revenue program under 
177.20  Minnesota Statutes, section 123B.59, for the purposes of 
177.21  financing school facilities in the district. 
177.22     Subd. 5.  [COMPLIANCE WITH SUPERINTENDENT REPORT.] In order 
177.23  to be eligible for the alternative facilities revenue program 
177.24  according to this section, the district must comply with 
177.25  Minnesota Statutes, section 123B.143, subdivision 1, clause (5). 
177.26     Sec. 28.  [ELK RIVER DEBT SERVICE LOAN TAX ADJUSTMENT.] 
177.27     The department shall recompute the maximum tax rate 
177.28  required under Minnesota Statutes, section 126C.63, subdivision 
177.29  8, for taxes payable in 2000 and thereafter for independent 
177.30  school district No. 728, Elk River.  The recomputation shall 
177.31  adjust for the difference in property tax base in the district 
177.32  relative to the state average as determined under Laws 1997, 
177.33  First Special Session chapter 4, article 1, section 61, 
177.34  subdivision 2. 
177.35     Sec. 29.  [RESIDENTIAL ACADEMIES.] 
177.36     If a recipient has been awarded a grant under Laws 1998, 
178.1   chapter 398, article 5, section 46, and fails to meet the 
178.2   requirements under the application process for implementing the 
178.3   program after June 30, 1999, any grant money awarded but not 
178.4   paid shall not cancel but is appropriated to the commissioner 
178.5   for new grants.  The commissioner may reopen the application 
178.6   process with any funds made available.  The commissioner shall 
178.7   consider an application that proposes to use the state facility 
178.8   at Sauk Centre for the program.  Notwithstanding any law enacted 
178.9   during the 1999 session, if a recipient proposes to use the 
178.10  state facility at Sauk Centre, the facility shall transfer to 
178.11  the commissioner of administration. 
178.12     Sec. 30.  [APPROPRIATION.] 
178.13     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
178.14  LEARNING.] The sums indicated in this section are appropriated 
178.15  from the general fund to the department of children, families, 
178.16  and learning for the fiscal years designated. 
178.17     Subd. 2.  [FACILITIES EQUALIZATION AID.] For facilities 
178.18  equalization aid according to Minnesota Statutes, section 
178.19  123B.53, subdivision 6: 
178.20       $66,751,000    .....     2000 
178.21       $66,894,000    .....     2001 
178.22     The 2000 appropriation includes $6,957,000 for 1999 and 
178.23  $59,794,000 for 2000.  The 2001 appropriation includes 
178.24  $6,640,000 for 2000 and $60,254,000 for 2001. 
178.25     Subd. 3.  [INTERACTIVE TELEVISION (ITV) AID.] For 
178.26  interactive television (ITV) aid according to Minnesota 
178.27  Statutes, section 126C.40, subdivision 4: 
178.28       $4,197,000     .....     2000 
178.29       $2,851,000     .....     2001 
178.30     The 2000 appropriation includes $405,000 for 1999 and 
178.31  $3,792,000 for 2000.  The 2001 appropriation includes $421,000 
178.32  for 2000 and $2,430,000 for 2001. 
178.33     Subd. 4.  [ONE-TIME INFRASTRUCTURE GRANTS.] For grants for 
178.34  infrastructure improvement: 
178.35       $1,082,000     .....     2000 
178.36     Of this amount, $50,000 is for independent school district 
179.1   No. 23, Frazee; $150,000 is for independent school district No. 
179.2   659, Northfield; $300,000 is for independent school district No. 
179.3   392, Le Center; $316,000 is for independent school district No. 
179.4   31, Bemidji; and $266,000 is for independent school district No. 
179.5   542, Battle Lake.  These grants must be used to improve and 
179.6   update the district's school infrastructure including facilities 
179.7   purposes that lead to greater program efficiencies, technology 
179.8   infrastructure, or building maintenance. 
179.9      Subd. 5.  [FACILITY GRANT; BROOKLYN CENTER.] For a grant to 
179.10  independent school district No. 286, Brooklyn Center, a district 
179.11  impacted by statutory operating debt, for replacement of two 
179.12  boilers and one chiller: 
179.13       $150,000       .....     2000 
179.14     This appropriation is available until June 30, 2001. 
179.15     Subd. 6.  [DISASTER RELIEF FACILITIES GRANT; COMFREY.] For 
179.16  a disaster relief facilities grant to independent school 
179.17  district No. 81, Comfrey: 
179.18       $450,000       .....     2000 
179.19     This appropriation is available until June 30, 2001. 
179.20     This grant is for facilities replacement costs not covered 
179.21  by the district's insurance settlement or through federal 
179.22  emergency management agency payments. 
179.23     Subd. 7.  [DISASTER RELIEF FACILITIES GRANT; ST. 
179.24  PETER.] For a disaster relief facilities grant to independent 
179.25  school district No. 508, St. Peter: 
179.26       $600,000       .....     2000 
179.27     This grant is for facilities replacement costs not covered 
179.28  by the district's insurance settlement or through federal 
179.29  emergency management agency payments.  
179.30     This appropriation is available until June 30, 2001. 
179.31     Subd. 8.  [PLANNING GRANT; MINNESOTA RIVER VALLEY EDUCATION 
179.32  DISTRICT.] For a matching grant to the Minnesota river valley 
179.33  education district to develop a plan for the co-location of 
179.34  Minnesota river valley education district, including its area 
179.35  learning center, and southwest Minnesota workforce development 
179.36  center facilities, including the collaboration of the delivery 
180.1   of their services: 
180.2        $50,000        .....     2000 
180.3      The outcomes of the matching planning grant are to: 
180.4      (1) develop a coordinated plan to improve the delivery of 
180.5   services through the co-location of the participating district's 
180.6   and workforce center's programs and services; 
180.7      (2) offer services through various educational and 
180.8   workforce center programs that will help students meet state 
180.9   graduation requirements; and 
180.10     (3) examine licensing issues that may prevent the most 
180.11  efficient use of shared staffing. 
180.12     The commissioner shall award the grant to the Minnesota 
180.13  river valley education district contingent upon the district 
180.14  demonstrating that it will match the grant amount with revenue 
180.15  contributed from member school districts and the workforce 
180.16  development center. 
180.17     This appropriation is available until June 30, 2001. 
180.18     Subd. 9.  [URBAN LEAGUE STREET ACADEMY.] For a grant to 
180.19  special school district No. 1, Minneapolis, for the urban league 
180.20  street academy for the costs of acquiring and moving to a larger 
180.21  building to expand the academy's program: 
180.22       $750,000       .....     2000 
180.23     This appropriation is available until June 30, 2001. 
180.24     Subd. 10.  [JACKSON COUNTY CENTRAL.] For a grant to 
180.25  independent school district No. 2862, Jackson County Central, 
180.26  for unanticipated costs related to facilities and consolidating 
180.27  the Jackson and Lakefield school districts: 
180.28       $90,000        .....     2000 
180.29     This appropriation is available until June 30, 2001. 
180.30     Subd. 11.  [HOLDINGFORD GRANT.] For a grant to independent 
180.31  school district No. 738, Holdingford, for a one-time grant to 
180.32  bring the girls locker room into Title IX compliance and to 
180.33  complete the construction on a school theater. 
180.34       $200,000       .....     2000 
180.35     This appropriation is available until June 30, 2001. 
180.36     Subd. 12.  [WADENA-DEER CREEK PILOT GRANT.] For a grant to 
181.1   independent school district No. 2155, Wadena-Deer Creek, for a 
181.2   pilot project to use technology to support instruction in 
181.3   mathematics and reading. 
181.4        $111,000       .....     2000 
181.5      This appropriation is available until June 30, 2001. 
181.6      Subd. 13.  [YEAR-ROUND OPTIONAL SCHOOL; 
181.7   CAMBRIDGE-ISANTI.] For a grant to independent school district 
181.8   No. 911, Cambridge-Isanti:  
181.9        $100,000       .....     2000 
181.10     This appropriation must be used for initial facility costs 
181.11  relating to the district's year-round optional school that 
181.12  assists in reducing elementary teacher-to-student ratios, 
181.13  including expenses to conform leased space to building code 
181.14  requirements. 
181.15     Subd. 14.  [COOPERATIVE SECONDARY FACILITY; PLANNING AND 
181.16  EXPENSES.] For a grant and administrative expenses to facilitate 
181.17  planning for a cooperative secondary facility under a joint 
181.18  powers agreement for school district Nos. 411, Balaton, 402, 
181.19  Ivanhoe, 404, Lake Benton, 418, Russell, 584, Ruthton, and 409, 
181.20  Tyler: 
181.21       $100,000       .....     2000 
181.22     Subd. 15.  [TELECOMMUNICATION ACCESS GRANTS.] For 
181.23  telecommunication access grants according to Minnesota Statutes, 
181.24  section 125B.20: 
181.25       $5,000,000     .....     2000 
181.26     This appropriation is available until June 30, 2001. 
181.27     Subd. 16.  [PROCTOR GRANT.] For a one-time grant to 
181.28  independent school district No. 704, Proctor, to make 
181.29  improvements to an ice arena located within the district 
181.30  boundaries in order for the district to use the facility to meet 
181.31  the district's curriculum needs under the state graduation rule: 
181.32       $150,000       .....     2000 
181.33     This appropriation is available until June 30, 2001. 
181.34     Sec. 31.  [REPEALER.] 
181.35     (a) Minnesota Statutes 1998, sections 123A.44; 123A.441; 
181.36  123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 123B.57, 
182.1   subdivisions 4, 5, and 7; 123B.59, subdivision 7; 123B.63, 
182.2   subdivisions 1 and 2; 123B.66; 123B.67; 123B.68; and 123B.69, 
182.3   are repealed effective the day following final enactment. 
182.4      (b) Minnesota Statutes 1998, section 123B.58, is repealed 
182.5   effective July 1, 2004. 
182.6      (c) Minnesota Rules, parts 3500.3900; 3500.4000; 3500.4100; 
182.7   3500.4200; and 3500.4300, are repealed. 
182.8      Sec. 32.  [REVISOR INSTRUCTION.] 
182.9      (a) In the next and subsequent editions of Minnesota 
182.10  Statutes, the revisor shall codify section 23 as Minnesota 
182.11  Statutes, section 125B.21. 
182.12     (b) In the next and subsequent editions of Minnesota 
182.13  Statutes, the revisor shall change the headnote of section 
182.14  123B.63 from "BUILDING CONSTRUCTION DOWN PAYMENT PROGRAM" to 
182.15  "BUILDING CONSTRUCTION DOWN PAYMENT AND LEASE PROGRAM." 
182.16     Sec. 33.  [EFFECTIVE DATES.] 
182.17     When preparing the prekindergarten through grade 12 
182.18  education conference committee report for adoption by the 
182.19  legislature, the revisor shall combine all effective date 
182.20  notations in this article into this effective date section. 
182.21                             ARTICLE 5 
182.22                        EDUCATION EXCELLENCE 
182.23     Section 1.  Minnesota Statutes 1998, section 41D.02, 
182.24  subdivision 2, is amended to read: 
182.25     Subd. 2.  [ELEMENTARY AND SECONDARY AGRICULTURAL 
182.26  EDUCATION.] The council may provide grants for: 
182.27     (1) planning and establishment costs for elementary and 
182.28  secondary agriculture education programs; 
182.29     (2) new instructional and communication technologies; and 
182.30     (3) curriculum updates. 
182.31     Sec. 2.  Minnesota Statutes 1998, section 123A.05, is 
182.32  amended by adding a subdivision to read: 
182.33     Subd. 5.  [BUILDING LEASE AID.] When an area learning 
182.34  center or a contracted alternative school finds it economically 
182.35  advantageous to rent or lease a building or land for any 
182.36  instructional purpose and it determines that the total operating 
183.1   capital revenue under section 126C.10, subdivision 13, is 
183.2   insufficient for this purpose, it may apply to the commissioner 
183.3   for building lease aid for this purpose.  Criteria for aid 
183.4   approval and revenue uses shall be as defined for the building 
183.5   lease levy in section 126C.40, subdivision 1, paragraphs (a) and 
183.6   (b).  The amount of building lease aid per pupil unit served for 
183.7   an area learning center or a contracted alternative school for 
183.8   any year shall not exceed the lesser of:  (1) 80 percent of the 
183.9   approved cost; or (2) the product of the pupil units served for 
183.10  the current school year times the sum of the state average debt 
183.11  redemption fund revenue plus capital revenue, according to 
183.12  section 126C.40, per pupil unit served for the current fiscal 
183.13  year.  Area learning centers and contracted alternatives may not 
183.14  purchase land or buildings with money received from the state. 
183.15     <i>(Effective date:  Section 2 (123A.05, subdivision 5) is</i> 
183.16  <i>effective the day following final enactment.)</i> 
183.17     Sec. 3.  Minnesota Statutes 1998, section 124D.10, 
183.18  subdivision 3, is amended to read: 
183.19     Subd. 3.  [SPONSOR; GRANT.] A school board, intermediate 
183.20  school district school board, education districts organized 
183.21  under sections 123A.15 to 123A.19, private college, community 
183.22  college, state university, technical college, or the University 
183.23  of Minnesota may sponsor one or more charter schools. 
183.24     Sec. 4.  Minnesota Statutes 1998, section 124D.10, 
183.25  subdivision 4, is amended to read: 
183.26     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
183.27  authorize one or more licensed teachers under section 122A.18, 
183.28  subdivision 1, to operate a charter school subject to approval 
183.29  by the state board.  A board must vote on charter school 
183.30  application for sponsorship no later than 60 days after receipt 
183.31  of the application.  After 60 days, the applicant may apply to 
183.32  the state board.  If a board elects not to sponsor a charter 
183.33  school, the applicant may appeal the board's decision to the 
183.34  state board if two members of the board voted to sponsor the 
183.35  school.  If the state board authorizes the school, the state 
183.36  board must sponsor the school according to this section.  The 
184.1   school must be organized and operated as a cooperative under 
184.2   chapter 308A or nonprofit corporation under chapter 317A.  
184.3      (b) Before the operators may form and operate a school, the 
184.4   sponsor must file an affidavit with the state board stating its 
184.5   intent to authorize a charter school.  The affidavit must state 
184.6   the terms and conditions under which the sponsor would authorize 
184.7   a charter school.  The state board must approve or disapprove 
184.8   the sponsor's proposed authorization within 60 days of receipt 
184.9   of the affidavit.  Failure to obtain state board approval 
184.10  precludes a sponsor from authorizing the charter school that was 
184.11  the subject of the affidavit.  
184.12     (c) The operators authorized to organize and operate a 
184.13  school must hold an election for members of the school's board 
184.14  of directors in a timely manner after the school is operating.  
184.15  Any staff members who are employed at the school, including 
184.16  teachers providing instruction under a contract with a 
184.17  cooperative, and all parents of children enrolled in the school 
184.18  may participate in the election.  Licensed teachers employed at 
184.19  the school, including teachers providing instruction under a 
184.20  contract with a cooperative, must be a majority of the members 
184.21  of the board of directors, unless the state board waives the 
184.22  requirement for the school.  A provisional board may operate 
184.23  before the election of the school's board of directors.  Board 
184.24  of director meetings must comply with section 471.705. 
184.25     (d) The granting or renewal of a charter by a sponsoring 
184.26  entity must not be conditioned upon the bargaining unit status 
184.27  of the employees of the school.  
184.28     Sec. 5.  Minnesota Statutes 1998, section 124D.10, 
184.29  subdivision 5, is amended to read: 
184.30     Subd. 5.  [CONVERSION OF EXISTING SCHOOLS.] A board may 
184.31  convert one or more of its existing schools to charter schools 
184.32  under this section if 90 60 percent of the full-time teachers at 
184.33  the school sign a petition seeking conversion.  The conversion 
184.34  must occur at the beginning of an academic year.  
184.35     Sec. 6.  Minnesota Statutes 1998, section 124D.10, 
184.36  subdivision 6, is amended to read: 
185.1      Subd. 6.  [CONTRACT.] The sponsor's authorization for a 
185.2   charter school must be in the form of a written contract signed 
185.3   by the sponsor and the board of directors of the charter 
185.4   school.  The contract must be completed within 90 days of the 
185.5   state board approval of the sponsor's proposed authorization.  
185.6   The contract for a charter school must be in writing and contain 
185.7   at least the following: 
185.8      (1) a description of a program that carries out one or more 
185.9   of the purposes in subdivision 1; 
185.10     (2) specific outcomes pupils are to achieve under 
185.11  subdivision 10; 
185.12     (3) admission policies and procedures; 
185.13     (4) management and administration of the school; 
185.14     (5) requirements and procedures for program and financial 
185.15  audits; 
185.16     (6) how the school will comply with subdivisions 8, 13, 16, 
185.17  and 23; 
185.18     (7) assumption of liability by the charter school; 
185.19     (8) types and amounts of insurance coverage to be obtained 
185.20  by the charter school; 
185.21     (9) the term of the contract, which may be up to three 
185.22  years; and 
185.23     (10) if the board of directors or the operators of the 
185.24  charter school provide special instruction and services for 
185.25  children with a disability under sections 125A.03 to 125A.24, 
185.26  and 125A.65, a description of the financial parameters within 
185.27  which the charter school will operate to provide the special 
185.28  instruction and services to children with a disability. 
185.29     Sec. 7.  Minnesota Statutes 1998, section 124D.10, 
185.30  subdivision 11, is amended to read: 
185.31     Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 
185.32  charter school must employ or contract with necessary teachers, 
185.33  as defined by section 122A.15, subdivision 1, who hold valid 
185.34  licenses to perform the particular service for which they are 
185.35  employed in the school.  The school may employ necessary 
185.36  employees who are not required to hold teaching licenses to 
186.1   perform duties other than teaching and may contract for other 
186.2   services.  The school may discharge teachers and nonlicensed 
186.3   employees.  A person, without holding a valid administrator's 
186.4   license, may perform administrative, supervisory, or 
186.5   instructional leadership duties. 
186.6      The board of directors also shall decide matters related to 
186.7   the operation of the school, including budgeting, curriculum and 
186.8   operating procedures.  
186.9      <i>(Effective date:  Section 7 (124D.10, subdivision 11) is</i> 
186.10  <i>effective for the 1999-2000 school year and thereafter.)</i> 
186.11     Sec. 8.  Minnesota Statutes 1998, section 124D.11, 
186.12  subdivision 4, is amended to read: 
186.13     Subd. 4.  [BUILDING LEASE AID.] When a charter school finds 
186.14  it economically advantageous to rent or lease a building or land 
186.15  for any instructional purposes and it determines that the total 
186.16  operating capital revenue under section 126C.10, subdivision 13, 
186.17  is insufficient for this purpose, it may apply to the 
186.18  commissioner for building lease aid for this purpose.  Criteria 
186.19  for aid approval and revenue uses shall be as defined for the 
186.20  building lease levy in section 126C.40, subdivision 1, 
186.21  paragraphs (a) and (b).  The amount of building lease aid per 
186.22  pupil unit served for a charter school for any year shall not 
186.23  exceed the lesser of (a) 80 90 percent of the approved cost or 
186.24  (b) the product of the pupil units served for the current school 
186.25  year times the sum of the state average debt redemption fund 
186.26  revenue plus capital revenue, according to section 126C.40, per 
186.27  pupil unit served for the current fiscal year $1,500. 
186.28     Sec. 9.  Minnesota Statutes 1998, section 124D.11, 
186.29  subdivision 6, is amended to read: 
186.30     Subd. 6.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
186.31  school is eligible to receive other aids, grants, and revenue 
186.32  according to chapters 120A to 129C, as though it were a district.
186.33  except that, notwithstanding section 127A.45, subdivision 3, the 
186.34  payments must be of an equal amount on each of the 23 payment 
186.35  dates unless a charter school is in its first year of operation 
186.36  in which case it shall receive on its first payment date ten 
187.1   percent of its cumulative amount guaranteed for the year and 22 
187.2   payments of an equal amount thereafter the sum of which shall be 
187.3   90 percent of the cumulative amount guaranteed.  However, it 
187.4      (b) Notwithstanding paragraph (a), a charter school may not 
187.5   receive aid, a grant, or revenue if a levy is required to obtain 
187.6   the money, except as otherwise provided in this section.  
187.7      (c) Federal aid received by the state must be paid to the 
187.8   school, if it qualifies for the aid as though it were a school 
187.9   district. 
187.10     (b) (d) A charter school may receive money from any source 
187.11  for capital facilities needs.  In the year-end report to the 
187.12  state board of education, the charter school shall report the 
187.13  total amount of funds received from grants and other outside 
187.14  sources. 
187.15     (e) Notwithstanding paragraph (a) or (b), a charter school 
187.16  is eligible to receive the aid portion of integration revenue 
187.17  under section 124D.86, subdivision 3, for enrolled students who 
187.18  are residents of a district that is eligible for integration 
187.19  revenue. 
187.20     Sec. 10.  Minnesota Statutes 1998, section 124D.11, is 
187.21  amended by adding a subdivision to read: 
187.22     Subd. 9.  [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 
187.23  Notwithstanding section 127A.45, subdivision 3, aid payments for 
187.24  the current fiscal year to a charter school not in its first 
187.25  year of operation shall be of an equal amount on each of the 23 
187.26  payment dates.  A charter school in its first year of operation 
187.27  shall receive, on its first payment date, ten percent of its 
187.28  cumulative amount guaranteed for the year and 22 payments of an 
187.29  equal amount thereafter the sum of which shall be 90 percent of 
187.30  the cumulative amount guaranteed. 
187.31     (b) Notwithstanding section 127A.45, subdivision 3, and 
187.32  paragraph (a), 90 percent of the start-up cost aid under 
187.33  subdivision 8 shall be paid within 30 days of receipt of a fall 
187.34  enrollment report from the charter school. 
187.35     Sec. 11.  Minnesota Statutes 1998, section 124D.11, is 
187.36  amended by adding a subdivision to read: 
188.1      Subd. 10.  [COMPENSATION REVENUE PUPIL UNITS; GROWTH 
188.2   COSTS.] A charter school that experiences growth in excess of 20 
188.3   percent of its compensation revenue pupil units computed 
188.4   according to section 126C.05, subdivision 3, in a single year is 
188.5   eligible for compensatory revenue equal to the formula allowance 
188.6   times the difference between the charter school's compensation 
188.7   revenue pupil units in the current year minus the compensation 
188.8   revenue pupil units served in the previous year. 
188.9      Sec. 12.  Minnesota Statutes 1998, section 124D.90, is 
188.10  amended to read: 
188.11     124D.90 [SCHOOL AND COMMUNITY ENRICHMENT PARTNERSHIP 
188.12  PROGRAM.] 
188.13     Subdivision 1.  [ESTABLISHMENT.] The school and community 
188.14  enrichment partnership program is established.  The purpose of 
188.15  the program is to encourage districts to expand the involvement 
188.16  of the community and the private sector in the delivery of 
188.17  academic programs.  The program will provide matching state 
188.18  funds for those provided by the private sector resources. 
188.19     Subd. 2.  [REVENUE ELIGIBILITY.] A district or group of 
188.20  districts is eligible to receive state aid a grant under this 
188.21  program.  Districts may enter into joint agreements to provide 
188.22  programs or make expenditures under this section.  The 
188.23  limitations under this subdivision apply to these programs or 
188.24  expenditures as if they were operated by a single district.  A 
188.25  district may receive $1 of state aid grant money for each $2 
188.26  raised from the private sector.  The private match must be in 
188.27  the form of cash.  Specific types of noncash support may be 
188.28  considered for the private match.  State aid A grant is limited 
188.29  to the lesser of $75,000 or $10 per pupil unit per 
188.30  district $10,000 per district or $5,000 per school site. 
188.31     Subd. 3.  [REVENUE MANAGEMENT.] The use of the state and 
188.32  private funds provided under this section is under the general 
188.33  control of the board.  The board may establish, without using 
188.34  state funds or public employees, a separate foundation to 
188.35  directly manage the funds.  The private funds must be used to 
188.36  acquire instructional or noninstructional academic materials of 
189.1   a capital nature including, but not limited to, textbooks, 
189.2   globes, maps, and other academic material to support student 
189.3   learning.  The funds shall not be used for salaries or other 
189.4   employee benefits. 
189.5      Subd. 4.  [PROCEDURES; REPORT.] The Minnesota academic 
189.6   excellence foundation, under the direction of the commissioner 
189.7   must establish application forms, guidelines, procedures, and 
189.8   timelines for the distribution of state aid a grant.  The 
189.9   commissioner may require reporting necessary to evaluate the 
189.10  program.  Measures of success will include numbers of 
189.11  partnerships and funds raised; numbers of school foundations 
189.12  formed; numbers of volunteers engaged; increased numbers of 
189.13  students participating in academic league activities under 
189.14  section 124D.94, subdivision 4; and demonstrated linkages of 
189.15  partnerships to improved instructional delivery resulting in 
189.16  increased student learning. 
189.17     Subd. 5.  [RESULTS-ORIENTED CHARTER SCHOOLS.] 
189.18  Notwithstanding section 124D.11, subdivision 6, paragraph (b), a 
189.19  results-oriented charter school is eligible to participate in 
189.20  the program under this section as if it were a district. 
189.21     Sec. 13.  Minnesota Statutes 1998, section 125B.05, 
189.22  subdivision 3, is amended to read: 
189.23     Subd. 3.  [SOFTWARE DEVELOPMENT.] The commissioner may 
189.24  charge school districts or cooperative units for the actual cost 
189.25  of software development used by the district or cooperative 
189.26  unit.  Any amount received is annually appropriated to the 
189.27  department of children, families, and learning for this 
189.28  purpose.  A school district, charter school, or cooperative unit 
189.29  may not implement a payroll financial, student, or staff 
189.30  software system after June 30, 1994, until the system has been 
189.31  reviewed by the department to ensure that it provides the 
189.32  required data elements and format. 
189.33     Sec. 14.  Minnesota Statutes 1998, section 272.02, 
189.34  subdivision 8, is amended to read: 
189.35     Subd. 8.  [PROPERTY LEASED TO SCHOOL DISTRICTS AND CHARTER 
189.36  SCHOOLS.] Property that is leased or rented to a school district 
190.1   or a charter school is exempt from taxation if it meets the 
190.2   following requirements: 
190.3      (1) the lease must be for a period of at least 12 
190.4   consecutive months; 
190.5      (2) the terms of the lease must require the school district 
190.6   or charter school to pay a nominal consideration for use of the 
190.7   building; 
190.8      (3) the school district or charter school must use the 
190.9   property to provide direct instruction in any grade from 
190.10  kindergarten through grade 12; special education for handicapped 
190.11  children; adult basic education as described in section 124D.52; 
190.12  preschool and early childhood family education; or community 
190.13  education programs, including provision of administrative 
190.14  services directly related to the educational program at that 
190.15  site; and 
190.16     (4) the lease must provide that the school district or 
190.17  charter school has the exclusive use of the property during the 
190.18  lease period. 
190.19     Sec. 15.  Laws 1997, First Special Session chapter 4, 
190.20  article 9, section 6, is amended to read:  
190.21     Sec. 6.  [LEARNING ACADEMY.] 
190.22     Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
190.23  develop standards and requirements and certify courses for a 
190.24  Minnesota learning academy to provide training opportunities for 
190.25  educators, administrators, school media and information 
190.26  technology professionals, and librarians in the use of 
190.27  technology and its integration into learning activities for 
190.28  meeting the educational needs of all students.  Only certified 
190.29  classes may be used to fulfill the requirements of the learning 
190.30  academy. 
190.31     Subd. 2.  [DEVELOPMENT OF THE LEARNING ACADEMY.] To develop 
190.32  the learning academy, the commissioner shall consult with 
190.33  representatives of public schools, higher education, teacher 
190.34  organizations, students, private business, state agencies, 
190.35  libraries, and political subdivisions to do the following: 
190.36     (1) set measures for teacher training opportunities on 
191.1   technical skills and technology integration skills; 
191.2      (2) identify and establish outcomes for a series of 
191.3   training courses that provide for technical skills and 
191.4   technology classroom integration skills, including skills to 
191.5   enable school media and information specialists to train school 
191.6   staff; 
191.7      (3) identify existing education organizations, public, or 
191.8   private institutions to develop and provide training courses; 
191.9      (4) evaluate prerequisites for the classroom integration 
191.10  skills course; 
191.11     (5) certify or decertify classes and courses for inclusion 
191.12  in or exclusion from the learning academy; and 
191.13     (6) coordinate and make certified classes and courses 
191.14  available to eligible participants. 
191.15     Subd. 3.  [FUNDING.] The commissioner shall use available 
191.16  appropriations to provide start-up and initial operating 
191.17  subsidies for the learning academy sites.  Appropriated funds 
191.18  may also be used to partially subsidize costs of attendees of 
191.19  the academy. 
191.20     Sec. 16.  [BRAIN POWER:  BIRTH TO CLASSROOM SYSTEM 
191.21  ALIGNMENT PILOT.] 
191.22     Subdivision 1.  [GOALS.] The goals of the brain power:  
191.23  birth to classroom system alignment pilot are to: 
191.24     (1) improve academic and social outcomes for young children 
191.25  ages birth to eight so that they will be prepared to reach their 
191.26  highest academic potential; 
191.27     (2) create equity in opportunity in education by the third 
191.28  grade; 
191.29     (3) encourage the use of different and innovative teaching 
191.30  methods designed to maximize learning and based on academic 
191.31  research involving brain formation and development; and 
191.32     (4) provide for measurable learning achievement. 
191.33     Subd. 2.  [GRANT APPLICATION.] Early childhood care and 
191.34  education service providers serving children ages birth to eight 
191.35  may apply to the commissioner of children, families, and 
191.36  learning for brain power:  birth to classroom funds in addition 
192.1   to funding sources which the applicant may be entitled to access 
192.2   under existing law.  Applicants must submit an application to 
192.3   the commissioner in the form prescribed by the commissioner.  
192.4   The application must include a detailed description of the 
192.5   program including:  
192.6      (1) a defined service delivery area and the number of 
192.7   children to be served; 
192.8      (2) how the pilot will be structured to reflect the 
192.9   characteristics of the children, their families, and the 
192.10  community involved in the program; 
192.11     (3) how the pilot will differ in context, scope, content, 
192.12  delivery, or other respects from early childhood care and 
192.13  education programming already available through existing state 
192.14  and local funding sources; 
192.15     (4) how the pilot will integrate professional development 
192.16  for staff; and 
192.17     (5) what streams of funding the pilot will integrate. 
192.18     Subd. 3.  [ELIGIBILITY.] Applicants must meet the following 
192.19  eligibility criteria:  
192.20     (1) applicants must at a minimum consist of a consortia of 
192.21  local representatives from the following service delivery 
192.22  systems:  Head Start; early childhood and family education; 
192.23  learning readiness; the child care community, including 
192.24  school-age child care; the local schools; public health; and the 
192.25  county; 
192.26     (2) pilots must operate according to a plan approved by the 
192.27  commissioner; 
192.28     (3) applicants must agree to utilize, within their first 
192.29  year of operation, the work sampling system of child assessment 
192.30  and use the early benchmark at age 3-1/2 years as required by 
192.31  the commissioner; and 
192.32     (4) applicants will be expected to determine indicators and 
192.33  demonstrate strategies to achieve a common set of outcomes and 
192.34  document processes used to achieve improved outcomes for 
192.35  children. 
192.36     Sec. 17.  [STABILITY DEMONSTRATION PROJECT.] 
193.1      A demonstration project involving high mobility schools is 
193.2   established in independent school district No. 625, St. Paul, to 
193.3   improve student achievement and to provide a model to other 
193.4   districts with high mobility schools.  Notwithstanding Minnesota 
193.5   Statutes, sections 123B.84 to 123B.86, the district may provide 
193.6   transportation to students living within the stability zone 
193.7   designated by the district to maintain attendance at the same 
193.8   school without providing similar transportation to other 
193.9   students.  The district must match $1 of district money for each 
193.10  $2 of grant money received. 
193.11     Sec. 18.  [BASIC SKILLS INTERVENTION; EXTENDED 
193.12  INSTRUCTION.] 
193.13     Subdivision 1.  [GRANTS.] The commissioner of children, 
193.14  families, and learning shall administer grants for fiscal year 
193.15  2000 for grants to school sites that offer a basic skills 
193.16  intervention program outside of the regular school day, 
193.17  including Saturdays.  The site shall provide intensive tutoring 
193.18  to students who have not yet passed the basic skills tests in 
193.19  math or reading.  Sites may also offer a program to students 
193.20  who, based on the statewide assessments in grades 3 and 5, are 
193.21  at risk of failing the basic skills examinations. 
193.22     Subd. 2.  [APPLICATION PROCESS.] To obtain a grant, a 
193.23  school site must submit an application to the commissioner in 
193.24  the form and manner established by the commissioner.  The 
193.25  application must describe how the applicant will provide the 
193.26  services described in subdivision 1. 
193.27     Subd. 3.  [GRANT AWARDS.] The commissioner may award grants 
193.28  to school sites who meet the requirements of this section.  The 
193.29  commissioner must base the amount of the grant on the number of 
193.30  children expected to participate in the program. 
193.31     Sec. 19.  [CLASS SIZE STUDY.] 
193.32     The class size study at independent school district No. 12, 
193.33  Centennial, shall continue for fiscal years 2000 and 2001.  The 
193.34  study shall focus on whether or not small class sizes would 
193.35  result in statistically significant gains in student achievement 
193.36  as defined by the state graduation standards, reductions of 
194.1   special education referrals, and reductions in negative behavior 
194.2   incidents.  The study shall also monitor parent, teacher, and 
194.3   student attitudes about lower class sizes.  The study shall 
194.4   compare a reduced class size group to a control group class with 
194.5   a larger student to teacher ratio.  The Centennial school 
194.6   district shall report to the commissioner of children, families, 
194.7   and learning, and to the education committees of the legislature 
194.8   by February 1, 2001, on the results of the class size study. 
194.9      Sec. 20.  [HEALTH PLAN STUDY.] 
194.10     The education organizations that participate in the 
194.11  development of a report on costs of health insurance for 
194.12  kindergarten through grade 12 educators shall report its 
194.13  findings to the legislative committees of the legislature by 
194.14  February 15, 2000. 
194.15     Sec. 21.  [APPROPRIATIONS.] 
194.16     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
194.17  LEARNING.] The sums indicated in this section are appropriated 
194.18  from the general fund to the department of children, families, 
194.19  and learning for the fiscal years designated. 
194.20     Subd. 2.  [STATEWIDE TESTING.] For supporting 
194.21  implementation of the graduation standards: 
194.22       $9,000,000    .....     2000 
194.23       $9,000,000    .....     2001 
194.24     Any balance in the first year does not cancel but is 
194.25  available in the second year. 
194.26     Subd. 3.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
194.27  lease aid according to Minnesota Statutes, section 124D.11, 
194.28  subdivision 4: 
194.29       $2,510,000     .....     2000 
194.30       $3,004,000     .....     2001 
194.31     The 2000 appropriation includes $194,000 for 1999 and 
194.32  $2,316,000 for 2000. 
194.33     The 2001 appropriation includes $273,000 for 2000 and 
194.34  $2,731,000 for 2001.  
194.35     Subd. 4.  [CHARTER SCHOOL START-UP GRANTS.] For charter 
194.36  school start-up cost aid under Minnesota Statutes, section 
195.1   124D.11: 
195.2        $1,689,000     .....     2000 
195.3        $1,776,000     .....     2001 
195.4      The 2000 appropriation includes $100,000 for 1999 and 
195.5   $1,589,000 for 2000.  
195.6      The 2001 appropriation includes $188,000 for 1999 and 
195.7   $1,588,000 for 2001. 
195.8      Any balance in the first year does not cancel but is 
195.9   available in the second year.  This appropriation may also be 
195.10  used for grants to convert existing schools into charter schools.
195.11     Subd. 5.  [ST. PAUL COMMUNITY-BASED SCHOOL PROGRAM.] For a 
195.12  grant to independent school district No. 625, St. Paul, for the 
195.13  operation of a community-based school program.  The school 
195.14  district must report to the legislature on the academic and 
195.15  social results of this program by January 15, 2000. 
195.16       $3,000,000     .....     2000 
195.17     Any balance in the first year does not cancel but is 
195.18  available in the second year.  This is a one-time appropriation. 
195.19     Subd. 6.  [GRADUATION RULE RESOURCE GRANTS.] For graduation 
195.20  rule resource grants according to Laws 1998, chapter 398, 
195.21  article 5, section 40: 
195.22       $7,850,000     .....     2000 
195.23     This appropriation is available until June 30, 2001. 
195.24     Of this amount, $400,000 is for a planning grant to 
195.25  independent school district No. 112, Chaska, for a project 
195.26  involving the Minnesota Arboretum; $100,000 is for the city of 
195.27  St. Paul, including the Como Park Zoo; $500,000 is for a current 
195.28  recipient of funding from the National Geographic Society 
195.29  Education Foundation; $130,000 is for a program offering horse 
195.30  riding as an alternative educational program for children with a 
195.31  disability; $100,000 is for a Young Inventors Program; $850,000 
195.32  is for neighborhood-based programs combining the arts and 
195.33  physical education; $100,000 is for programs developing an 
195.34  integrated model of technology and environmental learning; 
195.35  $250,000 is for programs for violence prevention through the 
195.36  arts; $180,000 is for Murphy's Landing; $1,000,000 is for an 
196.1   arts via the Internet collaborative project between the Walker 
196.2   Art Center and the Minneapolis Institute of Arts; and $500,000 
196.3   is for special education graduation rule development. 
196.4      Subd. 7.  [TALENTED STUDENT PROGRAMS.] For grants to 
196.5   talented students programs: 
196.6        $2,375,000   .....     2000 
196.7        $1,375,000   .....     2001 
196.8      Notwithstanding Minnesota Statutes, section 120B.13, 
196.9   subdivision 3, in each year to the extent of available 
196.10  appropriations, the commissioner shall pay all examination fees 
196.11  for all students sitting for an advanced placement examination, 
196.12  international baccalaureate examination, or both.  If this 
196.13  amount is not adequate, the commissioner may pay less than the 
196.14  full examination fee. 
196.15     $1,375,000 each year is for student scholarships.  A 
196.16  student scholarship shall be awarded to a student for each score 
196.17  of three or better on any advanced placement examination and for 
196.18  each score of four or better on any international baccalaureate 
196.19  examination.  The amount of each scholarship shall range from 
196.20  $150 to $500 based on the student's score on the exams.  The 
196.21  scholarships shall be awarded only to students who are enrolled 
196.22  in a Minnesota public or private college or university.  The 
196.23  total amount of each scholarship shall be paid directly to the 
196.24  student's designated college or university and must be used by 
196.25  the student only for tuition, required fees, and books in 
196.26  nonsectarian courses or programs.  The higher education services 
196.27  office, in consultation with the commissioner, shall determine 
196.28  the payment process, the amount of the scholarships, and 
196.29  provisions for unused scholarships.  
196.30     In order to be eligible to receive advanced placement or 
196.31  international baccalaureate scholarships on behalf of the 
196.32  qualifying students, the college or university must have an 
196.33  advanced placement, international baccalaureate, or both, credit 
196.34  and placement policy for the scholarship recipients.  In 
196.35  addition, each college or university must certify these policies 
196.36  to the department each year.  The department must provide each 
197.1   secondary school in the state with a copy of the post-secondary 
197.2   advanced placement and international baccalaureate policies each 
197.3   year. 
197.4      $500,000 in fiscal year 2000 is for a grant to the South 
197.5   Central Service Cooperative for the Minnesota talented youth 
197.6   math project operated by the South Central Service Cooperative 
197.7   and as fiscal agent for the talented youth math programs 
197.8   established and operated by the Northwest Service Cooperative, 
197.9   Northeast Service Cooperative, North Central Service 
197.10  Cooperative, and Southwest/Central Service Cooperative. 
197.11     $500,000 in fiscal year 2000 is for grants to provide 
197.12  gifted and talented students with access to appropriate 
197.13  programs, consistent with the requirements under Laws 1997, 
197.14  First Special Session chapter 4, article 5, section 24. 
197.15     Any balance in the first year does not cancel but is 
197.16  available in the second year. 
197.17     Subd. 8.  [CLEARINGHOUSE OF BEST EDUCATIONAL 
197.18  PRACTICES.] For the clearinghouse of best educational practices 
197.19  under Laws 1998, chapter 398, article 5, section 42: 
197.20       $16,037,000     .....     2000
197.21     This appropriation is available until June 30, 2001. 
197.22     Of this amount, $5,000,000 is for a grant to education 
197.23  Minnesota to provide three-day best practices seminars during 
197.24  the summer of 1999.  The seminars shall provide intensive 
197.25  professional development for public school teachers on best 
197.26  practices and implementing the profile of learning. 
197.27     Of this amount, $1,000,000 is for professional development 
197.28  grants for programs that utilize best practices in reading and 
197.29  $1,200,000 is for Hamline University's center for excellence in 
197.30  urban teaching. 
197.31     Of this amount, $500,000 is for the Richard Greene 
197.32  Institute; $500,000 is for matching funds to make the 
197.33  African-American Encyclopedia created by Harvard University 
197.34  available in Minnesota schools; $500,000 is for the school and 
197.35  community enrichment partnership program according to Minnesota 
197.36  Statutes, section 124D.90; $700,000 is for a grant to Shared 
198.1   Decisions Minnesota for school restructuring; $500,000 is for 
198.2   the Minnesota association of alternative programs; $240,000 is 
198.3   for the Minnesota International Center; $500,000 is for the 
198.4   Minnesota Children's Museum reading program; $500,000 is for A 
198.5   Chance To Grow/New Visions for the Minnesota Learning Resource 
198.6   Center; and $2,000,000 is for programs training teachers of 
198.7   special needs children. 
198.8      The following programs must be considered to receive grant 
198.9   money from the clearinghouse of best educational practices to 
198.10  further professional development opportunities for teachers:  
198.11  programs for technology training; programs implementing best 
198.12  practices for English language learners; programs training 
198.13  teachers to teach reading; training for violence prevention 
198.14  curriculum; training for the use of appropriate positive 
198.15  behavioral interventions; programs training teachers to improve 
198.16  the academic performance of at-risk children; programs that 
198.17  offer staff development for teachers of adult learners; school 
198.18  districts that offer teachers extended contracts for additional 
198.19  contact days and staff development days; statewide model 
198.20  projects using multipurpose Asian media programming, 
198.21  multicultural educational applications, or emerging technology; 
198.22  and training and workshops approved by the advanced placement or 
198.23  international baccalaureate programs. 
198.24     Subd. 9.  [STUDENT COUNCIL NATIONAL CONVENTION.] For a 
198.25  grant to independent school district No. 623, Roseville, for 
198.26  transportation costs for the National Association of Student 
198.27  Councils' 1999 National Convention to be held June 26 through 
198.28  June 30, 1999, at the Roseville Area High School: 
198.29       $50,000        .....     1999 
198.30     Subd. 10.  [AREA LEARNING CENTER BUILDING LEASE AID.] For 
198.31  area learning center building lease aid according to Minnesota 
198.32  Statutes, section 123A.05, subdivision 5: 
198.33       $2,250,000     .....     2000 
198.34       $6,750,000     .....     2001 
198.35     Subd. 11.  [PROPERTY LEASED TO SCHOOL DISTRICTS AND CHARTER 
198.36  SCHOOLS.] For property leased charter schools according to 
199.1   Minnesota Statutes, section 272.02, subdivision 8: 
199.2        $100,000       .....     2000 
199.3        $100,000       .....     2001 
199.4      Subd. 12.  [CHARTER SCHOOL INTEGRATION AID.] For new 
199.5   integration aid to go to charter schools according to Minnesota 
199.6   Statutes, section 124D.11, subdivision 6, paragraph (e): 
199.7        $50,000        .....     2000 
199.8        $50,000        .....     2001 
199.9      Any balance in the first year does not cancel but is 
199.10  available in the second year. 
199.11     Subd. 13.  [COMPENSATORY GROWTH COSTS.] For compensatory 
199.12  growth costs according to Minnesota Statutes, section 124D.11, 
199.13  subdivision 10: 
199.14       $100,000       .....     2000 
199.15       $100,000       .....     2001
199.16     Any balance in the first year does not cancel but is 
199.17  available in the second year. 
199.18     Subd. 14.  [BRAIN POWER:  BIRTH TO CLASSROOM.] For the 
199.19  purposes of the brain power:  birth to classroom system 
199.20  alignment project: 
199.21       $3,000,000     .....     2000 
199.22     This appropriation is available until June 30, 2001. 
199.23     Subd. 15.  [STABILITY DEMONSTRATION PROJECT.] For a 
199.24  stability demonstration project in independent school district 
199.25  No. 625, St. Paul: 
199.26       $568,000     .....     2000 
199.27     This appropriation is available until June 30, 2001.  
199.28     Subd. 16.  [BASIC SKILLS INTERVENTION; EXTENDED 
199.29  INSTRUCTION.] For basic skills intervention programs outside of 
199.30  the regular school day: 
199.31       $500,000       .....     2000 
199.32     This appropriation is available until June 30, 2001. 
199.33     Subd. 17.  [CLASS SIZE STUDY.] For a grant to independent 
199.34  school district No. 12, Centennial, for a class size study: 
199.35       $205,000     .....     2000
199.36       $218,000     .....     2001
200.1      Any balance remaining the first year does not cancel but is 
200.2   available in the second year. 
200.3      Subd. 18.  [HOMEWORK HOTLINE.] For grants for homework 
200.4   hotline providers: 
200.5        $100,000       .....     2000 
200.6        $100,000       .....     2001 
200.7      This appropriation is available to assist students with 
200.8   homework by telephone or other interactive technology.  The 
200.9   program providers must offer assistance to students at least 
200.10  four days per week.  The state aid is contingent upon the 
200.11  program matching each $1 of state revenue with $2 of local or 
200.12  private funding or in-kind contributions. 
200.13     $40,000 each year is for a "save a friend" youth crisis 
200.14  hotline.  Local or private matching funds are not required for 
200.15  this program. 
200.16     <i>(Effective date:  Section 21, subdivision 9,</i> 
200.17  <i>(Appropriations; Convention) is effective the day following</i> 
200.18  <i>final enactment.)</i> 
200.19     Sec. 22.  [EFFECTIVE DATES.] 
200.20     When preparing the prekindergarten through grade 12 
200.21  education conference committee report for adoption by the 
200.22  legislature, the revisor shall combine all effective date 
200.23  notations in this article into this effective dates section. 
200.24                             ARTICLE 6 
200.25                           OTHER PROGRAMS 
200.26     Section 1.  Minnesota Statutes 1998, section 120A.24, 
200.27  subdivision 1, is amended to read: 
200.28     Subdivision 1.  [REPORTS TO SUPERINTENDENT.] The person in 
200.29  charge of providing instruction to a child must submit the 
200.30  following information to the superintendent of the district in 
200.31  which the child resides: 
200.32     (1) by October 1 of each school year, the name, age birth 
200.33  date, and address of each child receiving instruction; 
200.34     (2) the name of each instructor and evidence of compliance 
200.35  with one of the requirements specified in section 120A.22, 
200.36  subdivision 10; 
201.1      (3) an annual instructional calendar; and 
201.2      (4) for each child instructed by a parent who meets only 
201.3   the requirement of section 120A.22, subdivision 10, clause (6), 
201.4   a quarterly report card on the achievement of the child in each 
201.5   subject area required in section 120A.22, subdivision 9. 
201.6      Sec. 2.  Minnesota Statutes 1998, section 123A.48, 
201.7   subdivision 10, is amended to read: 
201.8      Subd. 10.  [DISTRICT BOARD ADOPTION OF PROPOSED PLAT.] The 
201.9   board of any independent district maintaining a secondary 
201.10  school, the board of any common district maintaining a secondary 
201.11  school, all or part of whose land is included in the proposed 
201.12  new district, must, within 45 days of the approval of the plat 
201.13  by the commissioner, either adopt or reject the plan as proposed 
201.14  in the approved plat.  If the board of any such district 
201.15  entitled to act on the petition rejects the proposal, the 
201.16  proceedings are terminated and dismissed.  If any board fails to 
201.17  act on the plat within the time allowed, the proceedings are 
201.18  terminated.  If any school board is unable to obtain a majority 
201.19  of its members votes to accept or reject the plat and plan, a 
201.20  petition of residents of the district unable to obtain a 
201.21  majority of votes equal to 20 percent of the votes cast in the 
201.22  last school district general election in that district may be 
201.23  submitted to the county auditor requesting a public vote to 
201.24  accept or reject the plat and plan.  The vote shall be scheduled 
201.25  on the next available election date.  The county auditor shall 
201.26  notify the commissioner of the scheduled vote, conduct the 
201.27  election in the district, and certify the results of the 
201.28  election to the commissioner.  Other affected school boards that 
201.29  approve the plat and plan may chose to hold an election.  If 
201.30  elections are conducted in each affected school district, 
201.31  results shall be separate and a majority vote to approve the 
201.32  plat and plan must be reached in each of the affected 
201.33  districts.  If the plat and plan are rejected by the voters, a 
201.34  new plat and plan cannot be submitted, except by school board 
201.35  resolution in a district where the plat and plan were rejected, 
201.36  until January 1 of the year following the next school district 
202.1   general election.  
202.2      Sec. 3.  [123B.5751] [DEFINITIONS.] 
202.3      Subdivision 1.  [SCOPE.] For the purposes of this section 
202.4   and section 123B.5752, the terms defined in this section have 
202.5   the meanings given them. 
202.6      Subd. 2.  [PESTICIDE.] "Pesticide" means any substance or 
202.7   mixture of substances intended to prevent, destroy, repel, or 
202.8   mitigate a pest, and a substance or mixture of substances 
202.9   intended for use as a plant regulator, defoliant, or desiccant, 
202.10  except that pesticide does not include any disinfectant or 
202.11  sanitizer used for cleaning purposes which is a Toxicity 
202.12  Category III or IV Pesticide Product. 
202.13     Subd. 3.  [PEST.] "Pest" means an insect, rodent, nematode, 
202.14  fungus, weed, terrestrial or aquatic plant, animal life, virus, 
202.15  bacteria, or other organism designated by rule as a pest, except 
202.16  a virus, bacteria, or other microorganism on or in living humans 
202.17  or other living animals. 
202.18     Subd. 4.  [SCHOOL DISTRICT.] "School district" means a 
202.19  school district defined under section 120A.05, subdivision 8, 
202.20  and includes a charter school. 
202.21     Subd. 5.  [RESTRICTED USE PESTICIDE.] "Restricted use 
202.22  pesticide" means a pesticide formulation designated as a 
202.23  restricted use pesticide under FIFRA or by the commissioner of 
202.24  agriculture under chapter 18B. 
202.25     Subd. 6.  [TOXICITY CATEGORY I PESTICIDE 
202.26  PRODUCT.] "Toxicity Category I Pesticide Product" means any 
202.27  pesticide product that meets United States Environmental 
202.28  Protection Agency criteria for Toxicity Category I under Code of 
202.29  Federal Regulations, title 40, part 156, section 156.10. 
202.30     Subd. 7.  [TOXICITY CATEGORY II PESTICIDE 
202.31  PRODUCT.] "Toxicity Category II Pesticide Product" means any 
202.32  pesticide product that meets United States Environmental 
202.33  Protection Agency criteria for Toxicity Category II under Code 
202.34  of Federal Regulations, title 40, part 156, section 156.10.  
202.35     Subd. 8.  [TOXICITY CATEGORY III PESTICIDE 
202.36  PRODUCT.] "Toxicity Category III Pesticide Product" means any 
203.1   pesticide product that meets United States Environmental 
203.2   Protection Agency criteria for Toxicity Category III under Code 
203.3   of Federal Regulations, title 40, part 156, section 156.10.  
203.4      Subd. 9.  [TOXICITY CATEGORY IV PESTICIDE PRODUCT.] 
203.5   "Toxicity Category IV Pesticide Product" means any pesticide 
203.6   product that meets United States Environmental Protection Agency 
203.7   criteria for Toxicity Category IV under Code of Federal 
203.8   Regulations, title 40, part 156, section 156.10.  
203.9      <i>(Effective Date:  Section 3 (123B.5751) is effective July</i> 
203.10  <i>1, 2000.)</i> 
203.11     Sec. 4.  [123B.5752] [SCHOOL DISTRICT INTEGRATED PEST 
203.12  MANAGEMENT PLAN.] 
203.13     Subdivision 1.  [PESTICIDE APPLICATION NOTIFICATION.] A 
203.14  school district that plans to apply a pesticide which is a 
203.15  Toxicity Category I, II, or III Pesticide Product or a 
203.16  restricted use pesticide must provide a notice to parents and 
203.17  employees that it is applying such pesticides. 
203.18     Subd. 2.  [NOTICE AVAILABILITY.] The notice must be 
203.19  provided at least annually to the parent or guardian of each 
203.20  student and to each employee.  The notice may be included in any 
203.21  other notice that is provided to a parent or guardian or 
203.22  employee. 
203.23     Subd. 3.  [PLAN.] If a school board adopts a pest 
203.24  management plan, the plan must include the following: 
203.25     (1) identifying pests which need to be controlled; 
203.26     (2) establishing tolerable limits of each identified pest; 
203.27     (3) designing future buildings and landscapes to prevent 
203.28  identified pests; 
203.29     (4) excluding identified pests from sites and buildings 
203.30  using maintenance practices; 
203.31     (5) adapting cleaning activities and best management 
203.32  practices to minimize the number of pests; 
203.33     (6) using mechanical methods of controlling identified 
203.34  pests; and 
203.35     (7) controlling identified pests using the least toxic 
203.36  pesticides with the least exposure to persons as is practicable. 
204.1      <i>(Effective Date:  Section 4 (123B.5752) is effective July</i> 
204.2   <i>1, 2000.)</i> 
204.3      Sec. 5.  [124D.1155] [FAST BREAK TO LEARNING REVENUE.] 
204.4      Subdivision 1.  [APPLICATION PROCESS.] To receive revenue 
204.5   for providing breakfasts to all children, a public elementary 
204.6   school that participates in the federal school breakfast and 
204.7   lunch programs must submit an application to the commissioner in 
204.8   the form and manner the commissioner prescribes.  The 
204.9   application must describe how the applicant will encourage all 
204.10  children in the school to participate in the breakfast program.  
204.11  The applicant must also demonstrate to the commissioner that the 
204.12  applicant will collect a $1 local match of funding for every $3 
204.13  of state funding the applicant receives.  The applicant must 
204.14  raise the local match either by charging student households not 
204.15  eligible for federal free or reduced price meals or by 
204.16  soliciting funds or in-kind contributions from nonpublic 
204.17  sources.  The applicant can determine the method for charging 
204.18  student households for school breakfast however it must include 
204.19  a consideration of the household's ability to pay.  The 
204.20  applicant cannot collect local funds from student households for 
204.21  school breakfast that exceeds the difference between the revenue 
204.22  from federal and state aids and the actual cost of providing the 
204.23  breakfast.  The commissioner may require additional information 
204.24  from the applicant. 
204.25     Subd. 2.  [REVENUE AMOUNT.] School sites that received 
204.26  grants under Laws 1997, First Special Session chapter 4, article 
204.27  6, section 19, are eligible for revenue under this section and 
204.28  shall receive grants.  For fiscal year 2000 and later, the 
204.29  commissioner shall determine the revenue amount for school sites 
204.30  according to need as determined by the percentage of students 
204.31  enrolled in the school who are eligible for federal free or 
204.32  reduced price meals and that meet the requirements of this 
204.33  section until funding under this section is expended.  The 
204.34  commissioner shall determine the amount of the revenue using 
204.35  average statewide statistics and individual school statistics 
204.36  adjusted for other state and federal reimbursements.  Revenue 
205.1   recipients must use the proceeds to provide breakfast to school 
205.2   children every day school is in session. 
205.3      Sec. 6.  Minnesota Statutes 1998, section 126C.46, is 
205.4   amended to read: 
205.5      126C.46 [ABATEMENT LEVY.] 
205.6      (a) Each year, a school district may levy an amount to 
205.7   replace the net revenue lost to abatements that have occurred 
205.8   under chapter 278, section 270.07, 375.192, or otherwise.  The 
205.9   maximum abatement levy is the sum of: 
205.10     (1) the amount of the net revenue loss determined under 
205.11  section 127A.49, subdivision 2, that is not paid in state aid 
205.12  including any aid amounts not paid due to proration; 
205.13     (2) the difference of (i) the amount of any abatements that 
205.14  have been reported by the county auditor for the first six 
205.15  months of the calendar year during which the abatement levy is 
205.16  certified that the district chooses to levy, (ii) less any 
205.17  amount actually levied under this clause that was certified in 
205.18  the previous calendar year for the first six months of the 
205.19  previous calendar year; and 
205.20     (3) an amount equal to any interest paid on abatement 
205.21  refunds.  
205.22     (b) A district may spread this levy over a period not to 
205.23  exceed three two years.  With the approval of the commissioner, 
205.24  a district may spread this levy over a period not to exceed 
205.25  three years. 
205.26     By July 15, the county auditor shall separately report the 
205.27  abatements that have occurred during the first six calendar 
205.28  months of that year to the commissioner and each district 
205.29  located within the county. 
205.30     Sec. 7.  [LEVY AUTHORITY; CONTINUATION.] 
205.31     Subdivision 1.  [EXTENSION OF AUTHORITY.] The levy 
205.32  authority granted under Laws 1992, chapter 499, article 6, 
205.33  section 35, to the Lac qui Parle joint powers district is 
205.34  extended to independent school district No. 2853, Lac qui Parle 
205.35  Valley. 
205.36     Subd. 2.  [LEVY AUTHORITY.] For taxes payable in 2000 to 
206.1   2004, independent school district No. 2853, Lac qui Parle 
206.2   Valley, may levy an amount not to exceed $80,000 for costs 
206.3   associated with operating the cooperative secondary high school. 
206.4      (<i>Effective Date:  Section 7 (levy authority) is effective</i> 
206.5   <i>for taxes payable in 2000.</i>) 
206.6      Sec. 8.  [APPROPRIATIONS.] 
206.7      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
206.8   LEARNING.] The sums indicated in this section are appropriated 
206.9   from the general fund to the department of children, families, 
206.10  and learning for the fiscal years designated.  
206.11     Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
206.12  Minnesota Statutes, section 127A.49:  
206.13        $9,110,000    .....     2000 
206.14        $8,947,000    .....     2001 
206.15     The 2000 appropriation includes $1,352,000 for 1999 and 
206.16  $7,758,000 for 2000.  
206.17     The 2001 appropriation includes $861,000 for 2000 and 
206.18  $8,086,000 for 2001.  
206.19     Subd. 3.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
206.20  education aid according to Minnesota Statutes, sections 123B.40 
206.21  to 123B.48 and 123B.87: 
206.22       $10,996,000    .....      2000 
206.23       $11,878,000    .....      2001 
206.24     The 2000 appropriation includes $970,000 for 1999 and 
206.25  $10,026,000 for 2000. 
206.26     The 2001 appropriation includes $1,114,000 for 2000 and 
206.27  $10,764,000 for 2001.  
206.28     The department shall recompute the maximum allotments 
206.29  established on March 1, 1999, for fiscal year 2000 under 
206.30  Minnesota Statutes, sections 123B.42, subdivision 3, and 
206.31  123B.44, subdivision 6, to reflect the amount appropriated in 
206.32  this subdivision for fiscal year 2000. 
206.33     Subd. 4.  [CONSOLIDATION TRANSITION AID.] For districts 
206.34  consolidating under Minnesota Statutes, section 123A.485: 
206.35       $451,000       .....     2000
206.36       $375,000       .....     2001
207.1      The 2000 appropriation includes $113,000 for 1999 and 
207.2   $338,000 for 2000. 
207.3      The 2001 appropriation includes $37,000 for 2000 and 
207.4   $338,000 for 2001. 
207.5      Any balance in the first year does not cancel but is 
207.6   available in the second year. 
207.7      Subd. 5.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
207.8   pupil transportation aid under Minnesota Statutes, section 
207.9   123B.92, subdivision 9: 
207.10       $18,552,000    .....     2000 
207.11       $20,880,000    .....     2001 
207.12     The 2000 appropriation includes $1,848,000 for 2000 and 
207.13  $16,674,000 for 2001. 
207.14     The 2001 appropriation includes $1,852,000 for 2000 and 
207.15  $19,028,000 for 2001. 
207.16     Subd. 6.  [SCHOOL LUNCH.] (a) For school lunch aid 
207.17  according to Minnesota Statutes, section 124D.111, and Code of 
207.18  Federal Regulations, title 7, section 210.17, and for school 
207.19  milk aid according to Minnesota Statutes, section 124D.118:  
207.20       $7,770,000     .....     2000 
207.21       $7,770,000     .....     2001 
207.22     (b) Any unexpended balance remaining from the 
207.23  appropriations in this subdivision shall be prorated among 
207.24  participating schools based on the number of free, reduced, and 
207.25  fully paid federally reimbursable student lunches served during 
207.26  that school year.  
207.27     (c) If the appropriation amount attributable to either year 
207.28  is insufficient, the rate of payment for each fully paid student 
207.29  lunch shall be reduced and the aid for that year shall be 
207.30  prorated among participating schools so as not to exceed the 
207.31  total authorized appropriation for that year.  
207.32     (d) Not more than $800,000 of the amount appropriated each 
207.33  year may be used for school milk aid. 
207.34     Subd. 7.  [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer 
207.35  food service replacement aid under Minnesota Statutes, section 
207.36  124D.119: 
208.1        $150,000       .....     2000 
208.2        $150,000       .....     2001 
208.3      Subd. 8.  [FAST BREAK TO LEARNING REVENUE.] For fast break 
208.4   to learning revenue under Minnesota Statutes, section 124D.1155: 
208.5        $15,000,000    .....     2000 
208.6        $15,000,000    .....     2001 
208.7      Any balance in the first year does not cancel but is 
208.8   available in the second year. 
208.9      Subd. 9.  [HIV EDUCATION TRAINING SITES.] For regional 
208.10  training sites for HIV education in schools established 
208.11  according to Laws 1997, First Special Session chapter 4, article 
208.12  6, section 18: 
208.13       $458,000     .....     2000
208.14     Of this amount, $150,000 must be used for continued 
208.15  development of the existing sites; $150,000 for adding two 
208.16  additional training sites; $75,000 for coordination, technical 
208.17  assistance, evaluation, and contract management services for the 
208.18  sites; and $50,000 for a report and recommendations on the 
208.19  effectiveness of HIV education in public schools according to 
208.20  Minnesota Statutes, section 121A.23. 
208.21     This appropriation is available until June 30, 2001. 
208.22     Subd. 10.  [TRANSPORTATION GRANTS.] For grants to school 
208.23  districts that use public transportation to transport secondary 
208.24  students to and from school: 
208.25       $200,000     .....     2000 
208.26     Districts receiving transportation grants must match $1 of 
208.27  district money for each $1 of grant money received. 
208.28     This appropriation is available until June 30, 2001. 
208.29     Subd. 11.  [SCHOOL BREAKFAST.] To operate the school 
208.30  breakfast program: 
208.31       $456,000     .....     2000 
208.32       $456,000     .....     2001 
208.33     Any balance in the first year does not cancel but is 
208.34  available in the second year. 
208.35     Subd. 12.  [MAGNET SCHOOL GRANTS.] (a) For magnet school 
208.36  grants: 
209.1        $2,350,000     .....     2000 
209.2      (b) Up to $250,000 of this amount may be used for planning 
209.3   a magnet school in the metropolitan area on land that is 
209.4   currently owned by the state or federal government.  Up to 
209.5   $250,000 of this appropriation is for planning grants for 
209.6   specialty high school programs.  Specialty high school programs 
209.7   may include a cooperative program with a higher education 
209.8   institution to provide either a grade 9 through 16 program or a 
209.9   grade 11 through 14 program. 
209.10     (c) Of this amount, $1,200,000 is for the discovery magnet 
209.11  school in independent school district No. 347, Willmar, for 
209.12  capital and operating costs of the magnet school serving 
209.13  children from birth through grade 4. 
209.14     (d) Of this amount, $350,000 is for a planning grant for an 
209.15  urban agricultural high school for curriculum, design, 
209.16  coordination with the state's graduation standards, demographic 
209.17  research, development of partnerships, site acquisition, market 
209.18  assessment of student interest, collaboration with the local 
209.19  municipality and school district on any proposed site prior to 
209.20  acquisition, and facility predesign purposes. 
209.21     (e) Of this amount, $300,000 is to independent school 
209.22  district No. 696, Ely, to determine the feasibility of 
209.23  establishing a joint secondary and higher education 
209.24  environmental studies magnet school. 
209.25     (f) This appropriation is available until June 30, 2001. 
209.26     Subd. 13.  [ONE ROOM SCHOOLHOUSE.] For a grant to 
209.27  independent school district No. 690, Warroad, to operate the 
209.28  Angle Inlet School: 
209.29       $25,000     .....     2000
209.30       $25,000     .....     2001
209.31     Subd. 14.  [INTEGRATED PEST MANAGEMENT TRAINING AND 
209.32  MANUAL.] For training and developing a how-to manual on 
209.33  integrated pest management in schools: 
209.34       $50,000     .....     2000
209.35     The Minnesota extension service must provide the department 
209.36  of children, families, and learning with appropriate information 
210.1   concerning integrated pest management in schools using resources 
210.2   already developed by other states or the federal government. 
210.3      This appropriation is available until June 30, 2001. 
210.4      Sec. 9.  [REPEALER.] 
210.5      Minnesota Statutes 1998, sections 124D.112; 124D.113; and 
210.6   124D.116, are repealed. 
210.7      Sec. 10.  [EFFECTIVE DATE.] 
210.8      When preparing the prekindergarten through grade 12 
210.9   education conference committee report for adoption by the 
210.10  legislature, the revisor shall combine all effective date 
210.11  notations in this article into this effective date section. 
210.12                             ARTICLE 7 
210.13                          EDUCATION POLICY 
210.14     Section 1.  Minnesota Statutes 1998, section 120A.40, is 
210.15  amended to read: 
210.16     120A.40 [SCHOOL CALENDAR.] 
210.17     (a) Except for learning programs during summer, flexible 
210.18  learning year programs authorized under sections 124D.12 to 
210.19  124D.127, and learning year programs under section 124D.128, a 
210.20  district must not commence an elementary or secondary school 
210.21  year prior to before September 1, except as provided under 
210.22  paragraph (b).  Days which are devoted to teachers' workshops 
210.23  may be held before September 1.  Districts that enter into 
210.24  cooperative agreements are encouraged to adopt similar school 
210.25  calendars.  
210.26     (b) A district may begin the school year on any day before 
210.27  September 1 to accommodate a construction or remodeling project 
210.28  of $400,000 or more affecting a district school facility. 
210.29     <i>(Effective Date:  Notwithstanding any law to the contrary,</i> 
210.30  <i>section 1 (120A.40) is effective for the 1999-2000 school year</i> 
210.31  <i>and thereafter.)</i> 
210.32     Sec. 2.  Minnesota Statutes 1998, section 120B.30, 
210.33  subdivision 1, is amended to read: 
210.34     Subdivision 1.  [STATEWIDE TESTING.] (a) The commissioner, 
210.35  with advice from experts with appropriate technical 
210.36  qualifications and experience and stakeholders, shall include in 
211.1   the comprehensive assessment system, for each grade level to be 
211.2   tested, a single statewide norm-referenced or 
211.3   criterion-referenced test, or a combination of a norm-referenced 
211.4   and a criterion-referenced test, which shall be highly 
211.5   correlated with the state's graduation standards and 
211.6   administered annually to all students in the third, fifth, and 
211.7   eighth grades.  The commissioner shall establish one or more 
211.8   months during which schools shall administer the tests to 
211.9   students each school year.  Only Minnesota basic skills tests in 
211.10  reading, mathematics, and writing shall fulfill students' 
211.11  testing requirements for a passing state notation.  
211.12     (b) In addition, at the secondary level, districts shall 
211.13  assess student performance in all required learning areas and 
211.14  selected required standards within each area of the profile of 
211.15  learning.  The testing instruments and testing process shall be 
211.16  determined by the commissioner.  The results shall be aggregated 
211.17  at the site and district level.  The testing shall be 
211.18  administered beginning in the 1999-2000 school year and 
211.19  thereafter. 
211.20     (c) The comprehensive assessment system shall include an 
211.21  evaluation of school site and school district performance levels 
211.22  during the 1997-1998 school year and thereafter using an 
211.23  established performance baseline developed from students' test 
211.24  scores under this section that records, at a minimum, students' 
211.25  unweighted mean test scores in each tested subject, a second 
211.26  performance baseline that reports, at a minimum, the same 
211.27  unweighted mean test scores of only those students enrolled in 
211.28  the school by January 1 of the previous school year, and a third 
211.29  performance baseline that reports the same unweighted test 
211.30  scores of all students except those students receiving limited 
211.31  English proficiency instruction.  The evaluation also shall 
211.32  record separately, in proximity to the performance baselines, 
211.33  the percentages of students who are eligible to receive a free 
211.34  or reduced price school meal, demonstrate limited English 
211.35  proficiency, or are eligible to receive special education 
211.36  services. 
212.1      (d) In addition to the testing and reporting requirements 
212.2   under paragraphs (a), (b), and (c), the commissioner, in 
212.3   consultation with the state board of education, shall include 
212.4   the following components in the statewide educational 
212.5   accountability and public reporting system: 
212.6      (1) uniform statewide testing of all third, fifth, eighth, 
212.7   and post-eighth grade students with exemptions, only with parent 
212.8   or guardian approval, from the testing requirement only for 
212.9   those very few students for whom the student's individual 
212.10  education plan team under sections 125A.05 and 125A.06, 
212.11  determines that the student is incapable of taking a statewide 
212.12  test, or a limited English proficiency student under section 
212.13  124D.59, subdivision 2, if the student has been in the United 
212.14  States for fewer than 12 months and for whom special language 
212.15  barriers exist, such as the student's native language does not 
212.16  have a written form or the district does not have access to 
212.17  appropriate interpreter services for the student's native 
212.18  language; 
212.19     (2) educational indicators that can be aggregated and 
212.20  compared across school districts and across time on a statewide 
212.21  basis; 
212.22     (3) students' scores on the American College Test; 
212.23     (4) participation in the National Assessment of Educational 
212.24  Progress so that the state can benchmark its performance against 
212.25  the nation and other states, and, where possible, against other 
212.26  countries, and contribute to the national effort to monitor 
212.27  achievement; and 
212.28     (5) basic skills and advanced competencies connecting 
212.29  teaching and learning to high academic standards, assessment, 
212.30  and transitions to citizenship and employment. 
212.31     (e) Districts must report exemptions under paragraph (d), 
212.32  clause (1), to the commissioner consistent with a format 
212.33  provided by the commissioner. 
212.34     <i>(Effective Date:  Section 2 (120B.30, subdivision 1) is</i> 
212.35  <i>effective December 31, 1999.)</i> 
212.36     Sec. 3.  Minnesota Statutes 1998, section 120B.35, is 
213.1   amended to read: 
213.2      120B.35 [STUDENT ACHIEVEMENT LEVELS.] 
213.3      (a) Each school year, a school district must determine if 
213.4   the student achievement levels at each school site meet state 
213.5   expectations.  If student achievement levels at a school site do 
213.6   not meet state expectations for two out of three consecutive 
213.7   school years, beginning with the 1999-2000 2000-2001 school 
213.8   year, the district must work with the school site to adopt a 
213.9   plan to raise student achievement levels to state expectations.  
213.10  The legislature will determine state expectations after 
213.11  receiving a recommendation from the commissioner of children, 
213.12  families, and learning.  The commissioner must submit its 
213.13  recommendations to the legislature by December 15, 1998 January 
213.14  15, 2000.  The recommended model must measure both yearly 
213.15  progress against an established baseline and also make 
213.16  comparisons to state expectations. 
213.17     (b) The department must assist the district and the school 
213.18  site in developing a plan to improve student achievement.  The 
213.19  plan must include parental involvement components. 
213.20     Sec. 4.  Minnesota Statutes 1998, section 121A.61, 
213.21  subdivision 1, is amended to read: 
213.22     Subdivision 1.  [REQUIRED POLICY.] Each school board must 
213.23  adopt a written districtwide school discipline policy which 
213.24  includes written rules of conduct for students, minimum 
213.25  consequences for violations of the rules, and grounds and 
213.26  procedures for removal of a student from class.  The policy must 
213.27  be developed in consultation with the participation of 
213.28  administrators, teachers, employees, pupils, parents, community 
213.29  members, law enforcement agencies, county attorney offices, 
213.30  social service agencies, and such other individuals or 
213.31  organizations as the board determines appropriate.  A school 
213.32  site council may adopt additional provisions to the policy 
213.33  subject to the approval of the school board. 
213.34     Sec. 5.  [121A.68] [CRISIS MANAGEMENT POLICY.] 
213.35     Subdivision 1.  [MODEL POLICY.] By September 1, 1999, the 
213.36  commissioner shall maintain and make available to school boards 
214.1   a model crisis management policy. 
214.2      Subd. 2.  [SCHOOL DISTRICT POLICY.] By January 15, 2000, a 
214.3   school board must adopt a district crisis management policy to 
214.4   address potential violent crisis situations in the district.  
214.5   The policy must be developed in consultation with 
214.6   administrators, teachers, employees, students, parents, 
214.7   community members, law enforcement agencies, county attorney 
214.8   offices, social service agencies, and any other appropriate 
214.9   individuals or organizations. 
214.10     Sec. 6.  Minnesota Statutes 1998, section 122A.09, 
214.11  subdivision 4, is amended to read: 
214.12     Subd. 4.  [LICENSE AND RULES.] (a) The board must adopt 
214.13  rules to license public school teachers and interns subject to 
214.14  chapter 14. 
214.15     (b) The board must adopt rules requiring a person to 
214.16  successfully complete a skills examination in reading, writing, 
214.17  and mathematics as a requirement for initial teacher licensure.  
214.18  Such rules must require college and universities offering a 
214.19  board approved teacher preparation program to provide remedial 
214.20  assistance to persons who did not achieve a qualifying score on 
214.21  the skills examination, including those for whom English is a 
214.22  second language. 
214.23     (c) The board must adopt rules to approve teacher 
214.24  preparation programs.  The board, upon the request of a teacher 
214.25  trainee seeking licensure or a licensed graduate of a teacher 
214.26  preparation program, and subject to chapter 14, must hold a 
214.27  hearing to resolve matters affecting the components of a teacher 
214.28  preparation program. 
214.29     (d) The board must provide the leadership and shall adopt 
214.30  rules for the redesign of teacher education programs to 
214.31  implement a research based, results-oriented curriculum that 
214.32  focuses on the skills teachers need in order to be effective.  
214.33  The board shall implement new systems of teacher preparation 
214.34  program evaluation to assure program effectiveness based on 
214.35  proficiency of graduates in demonstrating attainment of program 
214.36  outcomes. 
215.1      (e) The board must adopt rules requiring successful 
215.2   completion of an examination of general pedagogical knowledge 
215.3   and examinations of licensure-specific teaching skills.  The 
215.4   rules shall be effective on the dates determined by the board, 
215.5   but not later than July 1, 1999 September 1, 2001. 
215.6      (f) The board must adopt rules requiring teacher educators 
215.7   to work directly with elementary or secondary school teachers in 
215.8   elementary or secondary schools to obtain periodic exposure to 
215.9   the elementary or secondary teaching environment. 
215.10     (g) The board must grant licenses to interns and to 
215.11  candidates for initial licenses. 
215.12     (h) The board must design and implement an assessment 
215.13  system which requires a candidate for an initial license and 
215.14  first continuing license to demonstrate the abilities necessary 
215.15  to perform selected, representative teaching tasks at 
215.16  appropriate levels. 
215.17     (i) The board must receive recommendations from local 
215.18  committees as established by the board for the renewal of 
215.19  teaching licenses. 
215.20     (j) The board must grant life licenses to those who qualify 
215.21  according to requirements established by the board, and suspend 
215.22  or revoke licenses pursuant to sections 122A.20 and 214.10.  The 
215.23  board must not establish any expiration date for application for 
215.24  life licenses.  
215.25     (k) The board must adopt rules that require all licensed 
215.26  teachers who are renewing their continuing license to include in 
215.27  their renewal requirements further preparation in the areas of 
215.28  using positive behavior interventions and in accommodating, 
215.29  modifying, and adapting curricula, materials, and strategies to 
215.30  appropriately meet the needs of individual students and ensure 
215.31  adequate progress toward the state's graduation rule.  The rules 
215.32  adopted under this paragraph apply to teachers who renew their 
215.33  licenses in year 2001 and later. 
215.34     (l) In adopting rules to license public school teachers who 
215.35  provide health-related services for disabled children, the board 
215.36  shall adopt rules consistent with license or registration 
216.1   requirements of the commissioner of health and the 
216.2   health-related boards who license personnel who perform similar 
216.3   services outside of the school. 
216.4      <i>(Effective Date:  Section 6, paragraphs (c) and (e)</i> 
216.5   <i>(122A.09, subdivision 4), are effective the day following final</i> 
216.6   <i>enactment.)</i> 
216.7      Sec. 7.  Minnesota Statutes 1998, section 122A.18, is 
216.8   amended by adding a subdivision to read: 
216.9      Subd. 7a.  [PERMISSION TO SUBSTITUTE TEACH.] The board of 
216.10  teaching may allow a person who is enrolled in and making 
216.11  satisfactory progress in a board-approved teacher program and 
216.12  who has successfully completed student teaching to be employed 
216.13  as a short-call substitute teacher.  
216.14     Sec. 8.  Minnesota Statutes 1998, section 122A.18, is 
216.15  amended by adding a subdivision to read: 
216.16     Subd. 10.  [READING STRATEGIES.] All colleges and 
216.17  universities approved by the board of teaching to prepare 
216.18  persons for classroom teacher licensure must include in their 
216.19  teacher preparation programs reading best practices that enable 
216.20  classroom teacher licensure candidates to know how to teach 
216.21  reading, such as phonics or other research-based best practices. 
216.22     Sec. 9.  Minnesota Statutes 1998, section 122A.19, 
216.23  subdivision 4, is amended to read: 
216.24     Subd. 4.  [TEACHER PREPARATION PROGRAMS.] For the purpose 
216.25  of licensing bilingual and English as a second language 
216.26  teachers, the board may approve programs at colleges or 
216.27  universities designed for their training subject to the approval 
216.28  of the state board of education. 
216.29     <i>(Effective Date:  Section 9 (122A.19, subdivision 4) is</i> 
216.30  <i>effective December 31, 1999.)</i> 
216.31     Sec. 10.  Minnesota Statutes 1998, section 122A.20, 
216.32  subdivision 1, is amended to read: 
216.33     Subdivision 1.  [GROUNDS FOR REVOCATION, SUSPENSION, OR 
216.34  DENIAL.] The board of teaching or the state board of education, 
216.35  or the commissioner, with the advice from an advisory task force 
216.36  of supervisory personnel established under section 15.014, 
217.1   whichever has jurisdiction over a teacher's licensure, may, on 
217.2   the written complaint of the school board employing a teacher, a 
217.3   teacher organization, or any other interested person, refuse to 
217.4   issue, refuse to renew, suspend, or revoke a teacher's license 
217.5   to teach for any of the following causes: 
217.6      (1) Immoral character or conduct; 
217.7      (2) Failure, without justifiable cause, to teach for the 
217.8   term of the teacher's contract; 
217.9      (3) Gross inefficiency or willful neglect of duty; or 
217.10     (4) Failure to meet licensure requirements; or 
217.11     (5) Fraud or misrepresentation in obtaining a license. 
217.12     The written complaint must specify the nature and character 
217.13  of the charges.  For purposes of this subdivision, the board of 
217.14  teaching is delegated the authority to suspend or revoke 
217.15  coaching licenses under the jurisdiction of the state board of 
217.16  education. 
217.17     <i>(Effective Date:  Section 10 (122A.20, subdivision 1) is</i> 
217.18  <i>effective December 31, 1999.)</i> 
217.19     Sec. 11.  Minnesota Statutes 1998, section 122A.20, 
217.20  subdivision 2, is amended to read: 
217.21     Subd. 2.  [MANDATORY REPORTING.] A school board must report 
217.22  to the board of teaching, the state board of education, or the 
217.23  board of trustees of the Minnesota state colleges and 
217.24  universities, whichever has jurisdiction over the teacher's 
217.25  license, when its teacher is discharged or resigns from 
217.26  employment after a charge is filed with the school board under 
217.27  section 122A.41, subdivisions 6, clauses (1), (2), and (3), and 
217.28  7, or after charges are filed that are ground for discharge 
217.29  under section 122A.40, subdivision 13, clauses (a), (b), (c), 
217.30  (d), and (e), or when a teacher is suspended or resigns while an 
217.31  investigation is pending under section 122A.40, subdivision 13, 
217.32  clauses (a), (b), (c), (d), and (e); 122A.41, subdivisions 6, 
217.33  clauses (1), (2), and (3), and 7; or 626.556.  The report must 
217.34  be made to the appropriate licensing board within ten days after 
217.35  the discharge, suspension, or resignation has occurred.  The 
217.36  licensing board to which the report is made must investigate the 
218.1   report for violation of subdivision 1 and the reporting board 
218.2   must cooperate in the investigation.  Notwithstanding any 
218.3   provision in chapter 13 or any law to the contrary, upon written 
218.4   request from the licensing board having jurisdiction over the 
218.5   teacher's license, a board or school superintendent shall 
218.6   provide the licensing board with information about the teacher 
218.7   from the district's files, any termination or disciplinary 
218.8   proceeding, any settlement or compromise, or any investigative 
218.9   file.  Upon written request from the appropriate licensing 
218.10  board, a board or school superintendent may, at the discretion 
218.11  of the board or school superintendent, solicit the written 
218.12  consent of a student and the student's parent to provide the 
218.13  licensing board with information that may aid the licensing 
218.14  board in its investigation and license proceedings.  The 
218.15  licensing board's request need not identify a student or parent 
218.16  by name.  The consent of the student and the student's parent 
218.17  must meet the requirements of chapter 13 and Code of Federal 
218.18  Regulations, title 34, section 99.30.  The licensing board may 
218.19  provide a consent form to the district.  Any data transmitted to 
218.20  any board under this section is private data under section 
218.21  13.02, subdivision 12, notwithstanding any other classification 
218.22  of the data when it was in the possession of any other agency. 
218.23     The licensing board to which a report is made must transmit 
218.24  to the attorney general's office any record or data it receives 
218.25  under this subdivision for the sole purpose of having the 
218.26  attorney general's office assist that board in its 
218.27  investigation.  When the attorney general's office has informed 
218.28  an employee of the appropriate licensing board in writing that 
218.29  grounds exist to suspend or revoke a teacher's license to teach, 
218.30  that licensing board must consider suspending or revoking or 
218.31  decline to suspend or revoke the teacher's license within 45 
218.32  days of receiving a stipulation executed by the teacher under 
218.33  investigation or a recommendation from an administrative law 
218.34  judge that disciplinary action be taken. 
218.35     <i>(Effective Date:  Section 11 (122A.20, subdivision 2) is</i> 
218.36  <i>effective December 31, 1999.)</i> 
219.1      Sec. 12.  Minnesota Statutes 1998, section 122A.21, is 
219.2   amended to read: 
219.3      122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.] 
219.4      Each application for the issuance, renewal, or extension of 
219.5   a license to teach and each application for the issuance, 
219.6   renewal, or extension of a license as supervisory personnel must 
219.7   be accompanied by a processing fee in an amount set by the board 
219.8   of teaching by rule.  Each application for the issuance, 
219.9   renewal, or extension of a license as supervisory personnel must 
219.10  be accompanied by a processing fee in an amount set by the state 
219.11  board of education by rule.  The processing fee for a teacher's 
219.12  license and for the licenses of supervisory personnel must be 
219.13  paid to the executive secretary of the board of teaching.  The 
219.14  processing fee for the licenses of supervisory personnel must be 
219.15  paid to the commissioner.  The executive secretary of the board 
219.16  of teaching and the commissioner shall deposit the fees with the 
219.17  state treasurer, as provided by law, and report each month to 
219.18  the commissioner of finance the amount of fees collected.  The 
219.19  fees as set by the boards board are nonrefundable for applicants 
219.20  not qualifying for a license.  However, a fee must be refunded 
219.21  by the state treasurer in any case in which the applicant 
219.22  already holds a valid unexpired license.  The boards board may 
219.23  waive or reduce fees for applicants who apply at the same time 
219.24  for more than one license, even if the licenses are under the 
219.25  jurisdiction of different boards. 
219.26     <i>(Effective Date:  Section 12 (122A.21) is effective</i> 
219.27  <i>December 31, 1999.)</i> 
219.28     Sec. 13.  Minnesota Statutes 1998, section 122A.40, 
219.29  subdivision 5, is amended to read: 
219.30     Subd. 5.  [PROBATIONARY PERIOD.] The first three 
219.31  consecutive years of a teacher's first teaching experience in 
219.32  Minnesota in a single district is deemed to be a probationary 
219.33  period of employment, and after completion thereof, the 
219.34  probationary period in each district in which the teacher is 
219.35  thereafter employed shall be one year.  The school board must 
219.36  adopt a plan for written evaluation of teachers during the 
220.1   probationary period.  Evaluation must occur at least three times 
220.2   each year for a teacher performing services on 120 or more 
220.3   school days, at least two times each year for a teacher 
220.4   performing services on 60 to 119 school days, and at least one 
220.5   time each year for a teacher performing services on fewer than 
220.6   60 school days.  Days devoted to parent-teacher conferences, 
220.7   teachers' workshops, and other staff development opportunities 
220.8   and days on which a teacher is absent from school must not be 
220.9   included in determining the number of school days on which a 
220.10  teacher performs services.  During the probationary period any 
220.11  annual contract with any teacher may or may not be renewed as 
220.12  the school board shall see fit.  However, the board must give 
220.13  any such teacher whose contract it declines to renew for the 
220.14  following school year written notice to that effect before June 
220.15  1 August 1.  If the teacher requests reasons for any nonrenewal 
220.16  of a teaching contract, the board must give the teacher its 
220.17  reason in writing, including a statement that appropriate 
220.18  supervision was furnished describing the nature and the extent 
220.19  of such supervision furnished the teacher during the employment 
220.20  by the board, within ten days after receiving such request.  The 
220.21  school board may, after a hearing held upon due notice, 
220.22  discharge a teacher during the probationary period for cause, 
220.23  effective immediately, under section 122A.44. 
220.24     Sec. 14.  Minnesota Statutes 1998, section 122A.40, 
220.25  subdivision 7, is amended to read: 
220.26     Subd. 7.  [TERMINATION OF CONTRACT AFTER PROBATIONARY 
220.27  PERIOD.] A teacher who has completed a probationary period in 
220.28  any district, and who has not been discharged or advised of a 
220.29  refusal to renew the teacher's contract pursuant to subdivision 
220.30  5, shall have a continuing contract with such district.  
220.31  Thereafter, the teacher's contract must remain in full force and 
220.32  effect, except as modified by mutual consent of the board and 
220.33  the teacher, until terminated by a majority roll call vote of 
220.34  the full membership of the board prior to April 1 upon one of 
220.35  the grounds specified in subdivision 9 or prior to June August 1 
220.36  upon one of the grounds specified in subdivision 10 or 11, or 
221.1   until the teacher is discharged pursuant to subdivision 13, or 
221.2   by the written resignation of the teacher submitted prior to 
221.3   April 1.  If an agreement as to the terms and conditions of 
221.4   employment for the succeeding school year has not been adopted 
221.5   pursuant to the provisions of sections 179A.01 to 179A.25 prior 
221.6   to March 1, the teacher's right of resignation is extended to 
221.7   the 30th calendar day following the adoption of said contract in 
221.8   compliance with section 179A.20, subdivision 5.  Such written 
221.9   resignation by the teacher is effective as of June 30 if 
221.10  submitted prior to that date and the teachers' right of 
221.11  resignation for the school year then beginning shall cease on 
221.12  July 15.  Before a teacher's contract is terminated by the 
221.13  board, the board must notify the teacher in writing and state 
221.14  its ground for the proposed termination in reasonable detail 
221.15  together with a statement that the teacher may make a written 
221.16  request for a hearing before the board within 14 days after 
221.17  receipt of such notification.  If the grounds are those 
221.18  specified in subdivision 9 or 13, the notice must also state a 
221.19  teacher may request arbitration under subdivision 15.  Within 14 
221.20  days after receipt of this notification the teacher may make a 
221.21  written request for a hearing before the board or an arbitrator 
221.22  and it shall be granted upon reasonable notice to the teacher of 
221.23  the date set for hearing, before final action is taken.  If no 
221.24  hearing is requested within such period, it shall be deemed 
221.25  acquiescence by the teacher to the board's action.  Such 
221.26  termination shall take effect at the close of the school year in 
221.27  which the contract is terminated in the manner aforesaid.  Such 
221.28  contract may be terminated at any time by mutual consent of the 
221.29  board and the teacher and this section does not affect the 
221.30  powers of a board to suspend, discharge, or demote a teacher 
221.31  under and pursuant to other provisions of law. 
221.32     Sec. 15.  Minnesota Statutes 1998, section 122A.40, 
221.33  subdivision 16, is amended to read: 
221.34     Subd. 16.  [DECISION.] After the hearing, the board must 
221.35  issue a written decision and order.  If the board orders 
221.36  termination of a continuing contract or discharge of a teacher, 
222.1   its decision must include findings of fact based upon competent 
222.2   evidence in the record and must be served on the teacher, 
222.3   accompanied by an order of termination or discharge, prior to 
222.4   April 1 in the case of a contract termination for grounds 
222.5   specified in subdivision 9, prior to June 1 August 1 for grounds 
222.6   specified in subdivision 10 or 11, or within ten days after 
222.7   conclusion of the hearing in the case of a discharge.  If the 
222.8   decision of the board or of a reviewing court is favorable to 
222.9   the teacher, the proceedings must be dismissed and the decision 
222.10  entered in the board minutes, and all references to such 
222.11  proceedings must be excluded from the teacher's record file. 
222.12     Sec. 16.  Minnesota Statutes 1998, section 122A.41, 
222.13  subdivision 4, is amended to read: 
222.14     Subd. 4.  [PERIOD OF SERVICE AFTER PROBATIONARY PERIOD; 
222.15  DISCHARGE OR DEMOTION.] After the completion of such 
222.16  probationary period, without discharge, such teachers as are 
222.17  thereupon reemployed shall continue in service and hold their 
222.18  respective position during good behavior and efficient and 
222.19  competent service and must not be discharged or demoted except 
222.20  for cause after a hearing. 
222.21     A probationary teacher is deemed to have been reemployed 
222.22  for the ensuing school year, unless the school board in charge 
222.23  of such school gave such teacher notice in writing before June 1 
222.24  August 1 of the termination of such employment.  In event of 
222.25  such notice the employment terminates at the close of the school 
222.26  sessions of the current school year. 
222.27     Sec. 17.  Minnesota Statutes 1998, section 122A.60, 
222.28  subdivision 1, is amended to read: 
222.29     Subdivision 1.  [STAFF DEVELOPMENT COMMITTEE.] A school 
222.30  board must use the revenue authorized in section 122A.61 for 
222.31  in-service education for programs under section 120B.22, 
222.32  subdivision 2, or for staff development plans under this 
222.33  section.  The board must establish a an advisory staff 
222.34  development committee to develop the plan, assist 
222.35  site decision-making professional development teams in 
222.36  developing a site plan consistent with the goals of the plan, 
223.1   and evaluate staff development efforts at the site level.  A 
223.2   majority of the advisory committee and the site professional 
223.3   development team must be teachers representing various grade 
223.4   levels, subject areas, and special education.  The advisory 
223.5   committee must also include nonteaching staff, parents, and 
223.6   administrators.  Districts must report staff development results 
223.7   and expenditures to the commissioner in the form and manner 
223.8   determined by the commissioner.  The expenditure report must 
223.9   include expenditures by the board for district level activities 
223.10  and expenditures made by the staff.  The report must provide a 
223.11  breakdown of expenditures for (1) curriculum development and 
223.12  programs, (2) in-service education, workshops, and conferences, 
223.13  and (3) the cost of teachers or substitute teachers for staff 
223.14  development purposes.  Within each of these categories, the 
223.15  report must also indicate whether the expenditures were incurred 
223.16  at the district level or the school site level, and whether the 
223.17  school site expenditures were made possible by the grants to 
223.18  school sites that demonstrate exemplary use of allocated staff 
223.19  development revenue.  These expenditures are to be reported 
223.20  using the UFARS system.  The commissioner shall report the staff 
223.21  development expenditure data to the education committees of the 
223.22  legislature by February 15 each year.  
223.23     Sec. 18.  Minnesota Statutes 1998, section 122A.60, 
223.24  subdivision 3, is amended to read: 
223.25     Subd. 3.  [STAFF DEVELOPMENT OUTCOMES.] The advisory staff 
223.26  development committee must adopt a staff development plan for 
223.27  improving student achievement of education outcomes.  The plan 
223.28  must be consistent with education outcomes that the school board 
223.29  determines.  The plan must include ongoing staff development 
223.30  activities that contribute toward continuous improvement in 
223.31  achievement of the following goals: 
223.32     (1) improve student achievement of state and local 
223.33  education standards in all areas of the curriculum by using best 
223.34  practices methods; 
223.35     (2) effectively meet the needs of a diverse student 
223.36  population, including at-risk children, children with 
224.1   disabilities, and gifted children, within the regular classroom 
224.2   and other settings; 
224.3      (3) provide an inclusive curriculum for a racially, 
224.4   ethnically, and culturally diverse student population that is 
224.5   consistent with the state education diversity rule and the 
224.6   district's education diversity plan; 
224.7      (4) improve staff ability to collaborate and consult with 
224.8   one another and to resolve conflicts collaboration and develop 
224.9   mentoring and peer review programs for new teachers; 
224.10     (5) effectively teach and model violence prevention policy 
224.11  and curriculum that address early intervention alternatives, 
224.12  issues of harassment, and teach nonviolent alternatives for 
224.13  conflict resolution; and 
224.14     (6) provide teachers and other members of site-based 
224.15  management teams with appropriate management and financial 
224.16  management skills. 
224.17     Sec. 19.  [122A.705] [MINNESOTA NEW TEACHER PROJECT.] 
224.18     Subdivision 1.  [ESTABLISHMENT; PARTICIPATION.] The 
224.19  Minnesota new teacher project is established in the department 
224.20  of children, families, and learning to retain new teachers in 
224.21  the profession and to provide models for supporting the 
224.22  professional development of first-year and second-year 
224.23  teachers.  In order for a school district to participate in the 
224.24  new teacher project, a school board and an exclusive 
224.25  representative of the teachers in the district must agree to 
224.26  participate in the new teacher project and to the district plan 
224.27  under subdivision 2. 
224.28     Subd. 2.  [DISTRICT PLAN.] A district that participates in 
224.29  the new teacher project must submit a plan for the project to 
224.30  the commissioner for approval.  The new teacher project plan 
224.31  must be consistent with the knowledge and skills required in the 
224.32  teacher licensure rules adopted by the board of teaching and the 
224.33  state graduation requirements, and include curricula of best 
224.34  practice activities such as mentoring, intensive summer 
224.35  orientation, first-year and second-year staff development 
224.36  workshops, peer review, mutual observation between new and 
225.1   experienced teachers, consultation with national board certified 
225.2   teachers, classroom management techniques, cultural diversity, 
225.3   reading strategies, lighter workloads, and first-year 
225.4   residency.  The plan must include the participation of a teacher 
225.5   preparation program approved by the board of teaching. 
225.6      Subd. 3.  [STATE MATCH.] A district that has an approved 
225.7   new teacher project plan must receive $1,000 of state money for 
225.8   each new teacher participating in the project.  The district 
225.9   must contribute $1,500 of district money for each new teacher 
225.10  participating in the project. 
225.11     Sec. 20.  [123A.245] [COOPERATIVE UNITS; ELIGIBILITY FOR 
225.12  GRANTS.] 
225.13     A cooperative unit, through its governing board, may apply 
225.14  for all competitive grants administered by agencies of the state 
225.15  and other government or nongovernment sources. 
225.16     Sec. 21.  Minnesota Statutes 1998, section 123B.02, is 
225.17  amended by adding a subdivision to read: 
225.18     Subd. 1a.  [CONTRACTS FOR SERVICES.] A school board may 
225.19  contract with a public or private entity to provide 
225.20  instructional and noninstructional services as provided in 
225.21  subdivision 14, consistent with the district's collective 
225.22  bargaining agreement. 
225.23     Sec. 22.  Minnesota Statutes 1998, section 123B.02, 
225.24  subdivision 3, is amended to read: 
225.25     Subd. 3.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
225.26  SUPPORT.] (a) A district must not be required by any type of 
225.27  formal or informal agreement except an agreement to provide 
225.28  building space according to paragraph (f), including a joint 
225.29  powers agreement, or membership in any cooperative unit defined 
225.30  in section 123A.24, subdivision 2, to participate in or provide 
225.31  financial support for the purposes of the agreement for a time 
225.32  period in excess of four fiscal years, or the time period set 
225.33  forth in this subdivision.  Any agreement, part of an agreement, 
225.34  or other type of requirement to the contrary is void.  This 
225.35  paragraph applies only to agreements entered into between July 
225.36  1, 1993, and June 30, 1999. 
226.1      (b) This subdivision shall not affect the continued 
226.2   liability of a district for its share of bonded indebtedness or 
226.3   other debt incurred as a result of any agreement before July 1, 
226.4   1993.  The district is liable only until the obligation or debt 
226.5   is discharged and only according to the payment schedule in 
226.6   effect on July 1, 1993, except that the payment schedule may be 
226.7   altered for the purpose of restructuring debt or refunding bonds 
226.8   outstanding on July 1, 1993, if the annual payments of the 
226.9   district are not increased and if the total obligation of the 
226.10  school district for its share of outstanding bonds or other debt 
226.11  is not increased. 
226.12     (c) To cease participating in or providing financial 
226.13  support for any of the services or activities relating to the 
226.14  agreement or to terminate participation in the agreement, the 
226.15  board must adopt a resolution and notify other parties to the 
226.16  agreement of its decision on or before February 1 of any year.  
226.17  The cessation or withdrawal shall be effective June 30 of the 
226.18  same year except that for a member of an education district 
226.19  organized under sections 123A.15 to 123A.19 or an intermediate 
226.20  district organized under chapter 136D, cessation or withdrawal 
226.21  shall be effective June 30 of the following fiscal year.  At the 
226.22  option of the board, cessation or withdrawal may be effective 
226.23  June 30 of the following fiscal year for a district 
226.24  participating in any type of agreement.  
226.25     (d) Before issuing bonds or incurring other debt, the 
226.26  governing body responsible for implementing the agreement must 
226.27  adopt a resolution proposing to issue bonds or incur other debt 
226.28  and the proposed financial effect of the bonds or other debt 
226.29  upon each participating district.  The resolution must be 
226.30  adopted within a time sufficient to allow the board to adopt a 
226.31  resolution within the time permitted by this paragraph and to 
226.32  comply with the statutory deadlines set forth in sections 
226.33  122A.40, 122A.41, and 123A.33.  The governing body responsible 
226.34  for implementing the agreement shall notify each participating 
226.35  board of the contents of the resolution.  Within 120 days of 
226.36  receiving the resolution of the governing body, the school board 
227.1   of the participating district shall adopt a resolution stating: 
227.2      (1) its concurrence with issuing bonds or incurring other 
227.3   debt; 
227.4      (2) its intention to cease participating in or providing 
227.5   financial support for the service or activity related to the 
227.6   bonds or other debt; or 
227.7      (3) its intention to terminate participation in the 
227.8   agreement. 
227.9      A board adopting a resolution according to clause (1) is 
227.10  liable for its share of bonded indebtedness or other debt as 
227.11  proposed by the governing body implementing the agreement.  A 
227.12  school board adopting a resolution according to clause (2) is 
227.13  not liable for the bonded indebtedness or other debt, as 
227.14  proposed by the governing body, related to the services or 
227.15  activities in which the district ceases participating or 
227.16  providing financial support.  A board adopting a resolution 
227.17  according to clause (3) is not liable for the bonded 
227.18  indebtedness or other debt proposed by the governing body 
227.19  implementing the agreement. 
227.20     (e) After July 1, 1993, a district is liable according to 
227.21  paragraph (d) for its share of bonded indebtedness or other debt 
227.22  incurred by the governing body implementing the agreement to the 
227.23  extent that the bonds or other debt are directly related to the 
227.24  services or activities in which the district participates or for 
227.25  which the district provides financial support.  The district has 
227.26  continued liability only until the obligation or debt is 
227.27  discharged and only according to the payment schedule in effect 
227.28  at the time the governing body implementing the agreement 
227.29  provides notice to the school board, except that the payment 
227.30  schedule may be altered for the purpose of refunding the 
227.31  outstanding bonds or restructuring other debt if the annual 
227.32  payments of the district are not increased and if the total 
227.33  obligation of the district for the outstanding bonds or other 
227.34  debt is not increased. 
227.35     (f) A district that is a member of a cooperative unit as 
227.36  defined in section 123A.24, subdivision 2, may obligate itself 
228.1   to participate in and provide financial support for an agreement 
228.2   with a cooperative unit to provide school building space for a 
228.3   term not to exceed two years with an option on the part of the 
228.4   district to renew for an additional two years.  
228.5      (g) Notwithstanding any limitations imposed under this 
228.6   subdivision, a school district may, according to section 
228.7   123B.51, subdivision 4, enter into a lease of all or a portion 
228.8   of a schoolhouse that is not needed for school purposes, 
228.9   including, but not limited to, a lease with a term of more than 
228.10  one year. 
228.11     Sec. 23.  Minnesota Statutes 1998, section 123B.195, is 
228.12  amended to read: 
228.13     123B.195 [BOARD MEMBERS' RIGHT TO EMPLOYMENT.] 
228.14     Notwithstanding section 471.88, subdivision 5, a school 
228.15  board member may be newly employed or may continue to be 
228.16  employed by a school district as an employee only if there is a 
228.17  reasonable expectation at the beginning of the fiscal year or at 
228.18  the time the contract is entered into or extended that the 
228.19  amount to be earned by that officer under that contract or 
228.20  employment relationship will not exceed $5,000 in that fiscal 
228.21  year.  Notwithstanding section 122A.40 or 122A.41 or other law, 
228.22  if the officer does not receive unanimous majority approval to 
228.23  be initially employed or to continue in employment at a meeting 
228.24  at which all board members are present, that employment is 
228.25  immediately terminated and that officer has no further rights to 
228.26  employment while serving as a school board member in the 
228.27  district. 
228.28     Sec. 24.  Minnesota Statutes 1998, section 123B.77, 
228.29  subdivision 4, is amended to read: 
228.30     Subd. 4.  [BUDGET APPROVAL.] Prior to July 1 of each year, 
228.31  the board of each district must approve and adopt its revenue 
228.32  and expenditure budgets for the next school year.  The budget 
228.33  document so adopted must be considered an 
228.34  expenditure-authorizing or appropriations document.  No funds 
228.35  shall be expended by any board or district for any purpose in 
228.36  any school year prior to the adoption of the budget document 
229.1   which authorizes that expenditure, or prior to an amendment to 
229.2   the budget document by the board to authorize the expenditure.  
229.3   Expenditures of funds in violation of this subdivision shall be 
229.4   considered unlawful expenditures.  Prior to the appropriation of 
229.5   revenue for the next school year in the initial budget, the 
229.6   board shall calculate the general education revenue, basic 
229.7   skills revenue, and referendum revenue for that year that it 
229.8   estimates will be generated by the pupils in attendance at each 
229.9   site, and shall inform each site of that estimate and report 
229.10  this information to the department of children, families, and 
229.11  learning. 
229.12     Sec. 25.  Minnesota Statutes 1998, section 123B.83, 
229.13  subdivision 4, is amended to read: 
229.14     Subd. 4.  [SPECIAL OPERATING PLAN.] (1) If the net negative 
229.15  unappropriated operating fund balance as defined in section 
229.16  126C.01, subdivision 11, calculated in accordance with the 
229.17  uniform financial accounting and reporting standards for 
229.18  Minnesota school districts, as of June 30 each year, is more 
229.19  than 2-1/2 percent of the year's expenditure amount, the 
229.20  district must, prior to January 31 of the next fiscal year, 
229.21  submit a special operating plan to reduce the district's deficit 
229.22  expenditures to the commissioner for approval.  The commissioner 
229.23  may also require the district to provide evidence that the 
229.24  district meets and will continue to meet all of the curriculum 
229.25  high school graduation requirements of the state board. 
229.26     Notwithstanding any other law to the contrary, a district 
229.27  submitting a special operating plan to the commissioner under 
229.28  this clause which is disapproved by the commissioner must not 
229.29  receive any aid pursuant to chapters 120B, 122A, 123A, 123B, 
229.30  124D, 125A, 126C, and 127A until a special operating plan of the 
229.31  district is so approved. 
229.32     (2) A district must receive aids pending the approval of 
229.33  its special operating plan under clause (1).  A district which 
229.34  complies with its approved operating plan must receive aids as 
229.35  long as the district continues to comply with the approved 
229.36  operating plan. 
230.1      <i>(Effective Date:  Section 25 (123B.83, subdivision 4) is</i> 
230.2   <i>effective December 31, 1999.)</i> 
230.3      Sec. 26.  Minnesota Statutes 1998, section 123B.90, 
230.4   subdivision 2, is amended to read: 
230.5      Subd. 2.  [STUDENT TRAINING.] (a) Each district must 
230.6   provide public school pupils enrolled in grades kindergarten 
230.7   through 10 with age-appropriate school bus safety training.  The 
230.8   training must be results-oriented and shall consist of both 
230.9   classroom instruction and practical training using a school 
230.10  bus.  Upon completing the training, a student shall be able to 
230.11  demonstrate knowledge and understanding of at least the 
230.12  following competencies and concepts: 
230.13     (1) transportation by school bus is a privilege and not a 
230.14  right; 
230.15     (2) district policies for student conduct and school bus 
230.16  safety; 
230.17     (3) appropriate conduct while on the school bus; 
230.18     (4) the danger zones surrounding a school bus; 
230.19     (5) procedures for safely boarding and leaving a school 
230.20  bus; 
230.21     (6) procedures for safe street or road crossing; and 
230.22     (7) school bus evacuation and other emergency procedures; 
230.23  and 
230.24     (8) appropriate training on the use of lap belts or lap and 
230.25  shoulder belts, if the district uses buses equipped with lap 
230.26  belts or lap and shoulder belts. 
230.27     (b) Each nonpublic school located within the district must 
230.28  provide all nonpublic school pupils enrolled in grades 
230.29  kindergarten through 10 who are transported by school bus at 
230.30  public expense and attend school within the district's 
230.31  boundaries with training as required in paragraph (a).  The 
230.32  school district shall make a bus available for the practical 
230.33  training if the district transports the nonpublic students.  
230.34  Each nonpublic school shall provide the instruction. 
230.35     (c) All students enrolled in grades kindergarten through 3 
230.36  who are transported by school bus and are enrolled during the 
231.1   first or second week of school must demonstrate achievement of 
231.2   the school bus safety training competencies by the end of the 
231.3   third week of school.  All students enrolled in grades 4 through 
231.4   10 who are transported by school bus and are enrolled during the 
231.5   first or second week of school must demonstrate achievement of 
231.6   the competencies by the end of the sixth week of school.  
231.7   Students enrolled in grades kindergarten through 10 who enroll 
231.8   in a school after the second week of school and are transported 
231.9   by school bus shall undergo school bus safety training and 
231.10  demonstrate achievement of the school bus safety competencies 
231.11  within four weeks of the first day of attendance.  The pupil 
231.12  transportation safety director in each district must certify to 
231.13  the commissioner annually that all students transported by 
231.14  school bus within the district have satisfactorily demonstrated 
231.15  knowledge and understanding of the school bus safety 
231.16  competencies according to this section or provide an explanation 
231.17  for a student's failure to demonstrate the competencies.  The 
231.18  principal or other chief administrator of each nonpublic school 
231.19  must certify annually to the public transportation safety 
231.20  director of the district in which the school is located that all 
231.21  of the school's students transported by school bus at public 
231.22  expense have received training.  A district may deny 
231.23  transportation to a student who fails to demonstrate the 
231.24  competencies, unless the student is unable to achieve the 
231.25  competencies due to a disability, or to a student who attends a 
231.26  nonpublic school that fails to provide training as required by 
231.27  this subdivision. 
231.28     (d) A district and a nonpublic school with students 
231.29  transported by school bus at public expense must, to the extent 
231.30  possible, provide kindergarten pupils with bus safety training 
231.31  before the first day of school. 
231.32     (e) A district and a nonpublic school with students 
231.33  transported by school bus at public expense must also provide 
231.34  student safety education for bicycling and pedestrian safety, 
231.35  for students enrolled in grades kindergarten through 5. 
231.36     (f) A district and a nonpublic school with students 
232.1   transported by school bus at public expense must make reasonable 
232.2   accommodations for the school bus, bicycle, and pedestrian 
232.3   safety training of pupils known to speak English as a second 
232.4   language and pupils with disabilities. 
232.5      Sec. 27.  Minnesota Statutes 1998, section 123B.90, 
232.6   subdivision 3, is amended to read: 
232.7      Subd. 3.  [MODEL TRAINING PROGRAM.] The commissioner shall 
232.8   develop a comprehensive model school bus safety training program 
232.9   for pupils who ride the bus that includes bus safety curriculum 
232.10  for both classroom and practical instruction, methods for 
232.11  assessing attainment of school bus safety competencies, and 
232.12  age-appropriate instructional materials.  The model training 
232.13  program for students riding buses with lap belts or lap and 
232.14  shoulder belts must include information on the appropriate use 
232.15  of lap belts or lap and shoulder belts.  The program must be 
232.16  adaptable for use by students with disabilities. 
232.17     Sec. 28.  Minnesota Statutes 1998, section 123B.91, 
232.18  subdivision 1, is amended to read: 
232.19     Subdivision 1.  [COMPREHENSIVE POLICY.] Each district must 
232.20  develop and implement a comprehensive, written policy governing 
232.21  pupil transportation safety, including transportation of 
232.22  nonpublic school students, when applicable.  The policy shall, 
232.23  at minimum, contain: 
232.24     (1) provisions for appropriate student bus safety training 
232.25  under section 123B.90; 
232.26     (2) rules governing student conduct on school buses and in 
232.27  school bus loading and unloading areas; 
232.28     (3) a statement of parent or guardian responsibilities 
232.29  relating to school bus safety; 
232.30     (4) provisions for notifying students and parents or 
232.31  guardians of their responsibilities and the rules, including the 
232.32  district's seat belt policy, if applicable; 
232.33     (5) an intradistrict system for reporting school bus 
232.34  accidents or misconduct and a system for dealing with local law 
232.35  enforcement officials in cases of criminal conduct on a school 
232.36  bus; 
233.1      (6) a discipline policy to address violations of school bus 
233.2   safety rules, including procedures for revoking a student's bus 
233.3   riding privileges in cases of serious or repeated misconduct; 
233.4      (7) a system for integrating school bus misconduct records 
233.5   with other discipline records; 
233.6      (8) a statement of bus driver duties; 
233.7      (9) planned expenditures for safety activities under 
233.8   section 123B.89 and, where applicable, provisions governing bus 
233.9   monitor qualifications, training, and duties; 
233.10     (10) rules governing the use and maintenance of type III 
233.11  vehicles, drivers of type III vehicles, qualifications to drive 
233.12  a type III vehicle, qualifications for a type III vehicle and 
233.13  the circumstances under which a student may be transported in a 
233.14  type III vehicle; 
233.15     (11) operating rules and procedures; 
233.16     (12) provisions for annual bus driver in-service training 
233.17  and evaluation; 
233.18     (13) emergency procedures; 
233.19     (14) a system for maintaining and inspecting equipment; 
233.20     (15) requirements of the school district, if any, that 
233.21  exceed state law minimum requirements for school bus operations; 
233.22  and 
233.23     (16) requirements for basic first aid training, which must 
233.24  include the Heimlich maneuver and procedures for dealing with 
233.25  obstructed airways, shock, bleeding, and seizures. 
233.26     Districts are encouraged to use the model policy developed 
233.27  by the Minnesota school boards association, the department of 
233.28  public safety, and the department of children, families, and 
233.29  learning, as well as the current edition of the "National 
233.30  Standards for School Buses and Operations" published by the 
233.31  National Safety Council, in developing safety policies.  Each 
233.32  district shall review its policy annually and make appropriate 
233.33  amendments, which must be submitted to the school bus safety 
233.34  advisory committee within one month of approval by the school 
233.35  board. 
233.36     Sec. 29.  Minnesota Statutes 1998, section 124D.03, is 
234.1   amended by adding a subdivision to read: 
234.2      Subd. 12.  [TERMINATION OF ENROLLMENT.] A district may 
234.3   terminate the enrollment of a nonresident student enrolled under 
234.4   this section or section 124D.07 or 124D.08 at the end of a 
234.5   school year if the student meets the definition of a habitual 
234.6   truant under section 260.015, subdivision 19, the student has 
234.7   been provided appropriate services under chapter 260A, and the 
234.8   student's case has been referred to juvenile court.  A district 
234.9   may also terminate the enrollment of a nonresident student over 
234.10  the age of 16 enrolled under this section if the student is 
234.11  absent without lawful excuse for one or more periods on 15 
234.12  school days and has not lawfully withdrawn from school under 
234.13  section 120A.22, subdivision 8. 
234.14     Sec. 30.  Minnesota Statutes 1998, section 124D.86, 
234.15  subdivision 1, is amended to read: 
234.16     Subdivision 1.  [USE OF THE REVENUE.] Integration revenue 
234.17  under this section must be used for programs established under a 
234.18  desegregation plan mandated by the state board or under court 
234.19  order, to increase learning opportunities and reduce the 
234.20  learning gap between learners living in high concentrations of 
234.21  poverty and their peers. 
234.22     <i>(Effective Date:  Section 30 (124D.86, subdivision 1) is</i> 
234.23  <i>effective December 31, 1999.)</i> 
234.24     Sec. 31.  Minnesota Statutes 1998, section 124D.86, 
234.25  subdivision 3, is amended to read: 
234.26     Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 1999 and 
234.27  later fiscal years, integration revenue equals the following 
234.28  amounts: 
234.29     (1) for independent school district No. 709, Duluth, $193 
234.30  times the resident pupil units for the school year; 
234.31     (2) for independent school district No. 625, St. Paul, $427 
234.32  times the resident pupil units for the school year; 
234.33     (3) for special school district No. 1, Minneapolis, $523 
234.34  times the resident pupil units for the school year; and 
234.35     (4) for a district not listed in clause (1), (2), or (3) 
234.36  that is required to implement a plan according to the 
235.1   requirements of Minnesota Rules, parts 3535.0200 to 3535.2200, 
235.2   the lesser of the actual cost of implementing the plan during 
235.3   the fiscal year or $93 times the resident pupil units for the 
235.4   school year. 
235.5      <i>(Effective Date:  Section 31 (124D.86, subdivision 3) is</i> 
235.6   <i>effective December 31, 1999.)</i> 
235.7      Sec. 32.  Minnesota Statutes 1998, section 124D.89, 
235.8   subdivision 1, is amended to read: 
235.9      Subdivision 1.  [CULTURAL EXCHANGE PROGRAM GOALS.] (a) A 
235.10  cultural exchange grant program is established to develop and 
235.11  create opportunities for children and staff of different ethnic, 
235.12  racial, and other cultural backgrounds to experience educational 
235.13  and social exchange.  Student and staff exchanges under this 
235.14  section may only take place between a district with a 
235.15  desegregation plan approved by the state board of education and 
235.16  a district without a desegregation plan.  Participating school 
235.17  districts shall offer summer programs for credit with the goals 
235.18  set forth in paragraphs (b) to (e). 
235.19     (b) The program must develop curriculum reflective of 
235.20  particular ethnic, racial, and other cultural aspects of various 
235.21  demographic groups in the state. 
235.22     (c) The program must develop immersion programs that are 
235.23  coordinated with the programs offered in paragraph (b). 
235.24     (d) The program must create opportunities for students from 
235.25  across the state to enroll in summer programs in districts other 
235.26  than the one of residence, or in other schools within their 
235.27  district of residence. 
235.28     (e) The program must create opportunities for staff 
235.29  exchanges on a cultural basis. 
235.30     <i>(Effective Date:  Section 32 (124D.89, subdivision 1) is</i> 
235.31  <i>effective December 31, 1999.)</i> 
235.32     Sec. 33.  Minnesota Statutes 1998, section 124D.94, 
235.33  subdivision 3, is amended to read: 
235.34     Subd. 3.  [BOARD OF DIRECTORS.] The board of directors of 
235.35  the foundation shall consist of the commissioner of children, 
235.36  families, and learning, a member of the state board of education 
236.1   selected by the state board who shall serve as chair and 20 
236.2   members to be appointed by the governor.  Of the 20 members 
236.3   appointed by the governor, eight shall represent a variety of 
236.4   education groups and 12 shall represent a variety of business 
236.5   groups.  The members of the board of directors shall select one 
236.6   member to serve as chair.  The commissioner of children, 
236.7   families, and learning shall serve as secretary for the board of 
236.8   directors and provide administrative support to the foundation.  
236.9   An executive committee of the foundation board composed of the 
236.10  board officers and chairs of board committees, may only advise 
236.11  and make recommendations to the foundation board.  
236.12     <i>(Effective Date:  Section 33 (124D.94, subdivision 3) is</i> 
236.13  <i>effective December 31, 1999.)</i> 
236.14     Sec. 34.  Minnesota Statutes 1998, section 125A.09, 
236.15  subdivision 11, is amended to read: 
236.16     Subd. 11.  [HEARING REVIEW OFFICER'S QUALIFICATIONS.] The 
236.17  commissioner must select an individual who has the 
236.18  qualifications enumerated in this subdivision to serve as the 
236.19  hearing review officer: 
236.20     (1) the individual must be knowledgeable and impartial; 
236.21     (2) the individual must not have a personal interest in or 
236.22  specific involvement with the student who is a party to the 
236.23  hearing; 
236.24     (3) the individual must not have been employed as an 
236.25  administrator by the district that is a party to the hearing; 
236.26     (4) the individual must not have been involved in the 
236.27  selection of the administrators of the district that is a party 
236.28  to the hearing; 
236.29     (5) the individual must not have a personal, economic, or 
236.30  professional interest in the outcome of the hearing other than 
236.31  the proper administration of the federal and state laws, rules, 
236.32  and policies; 
236.33     (6) the individual must not have substantial involvement in 
236.34  the development of a state or local policy or procedures that 
236.35  are challenged in the appeal; 
236.36     (7) the individual is not a current employee or board 
237.1   member of a Minnesota public school district, education 
237.2   district, intermediate unit or regional education agency, or the 
237.3   department, and the state board of education; and 
237.4      (8) the individual is not a current employee or board 
237.5   member of a disability advocacy organization or group. 
237.6      <i>(Effective Date:  Section 34 (125A.09, subdivision 11) is</i> 
237.7   <i>effective December 31, 1999.)</i> 
237.8      Sec. 35.  Minnesota Statutes 1998, section 127A.05, 
237.9   subdivision 1, is amended to read: 
237.10     Subdivision 1.  [APPOINTMENT AND DUTIES.] The department 
237.11  shall be under the administrative control of the commissioner of 
237.12  children, families, and learning which office is 
237.13  established.  The commissioner shall be the secretary of the 
237.14  state board.  The governor shall appoint the commissioner under 
237.15  the provisions of section 15.06.  
237.16     The commissioner shall be a person who possesses 
237.17  educational attainment and breadth of experience in the 
237.18  administration of public education and of the finances 
237.19  pertaining thereto commensurate with the spirit and intent of 
237.20  this code.  Notwithstanding any other law to the contrary, the 
237.21  commissioner may appoint two deputy commissioners who shall 
237.22  serve in the unclassified service.  The commissioner shall also 
237.23  appoint other employees as may be necessary for the organization 
237.24  of the department.  The commissioner shall perform such duties 
237.25  as the law and the rules of the state board may provide and be 
237.26  held responsible for the efficient administration and discipline 
237.27  of the department.  The commissioner shall make recommendations 
237.28  to the board and be is charged with the execution of powers and 
237.29  duties which the state board may prescribe, from time to time, 
237.30  to promote public education in the state, and to safeguard the 
237.31  finances pertaining thereto, and to enable the state board to 
237.32  carry out its duties. 
237.33     <i>(Effective Date:  Section 35 (127A.05, subdivision 1) is</i> 
237.34  <i>effective December 31, 1999.)</i> 
237.35     Sec. 36.  [127A.25] [SURVEY OF DISTRICTS.] 
237.36     The commissioner of children, families, and learning shall 
238.1   survey the state's school districts and report to the education 
238.2   committees of the legislature by January 15 of each odd-numbered 
238.3   year on the status of the teacher shortage and the substitute 
238.4   teacher shortage, including shortages in subject areas and 
238.5   regions of the state.  The report must also include how 
238.6   districts are making progress in hiring teachers and substitutes 
238.7   in the areas of shortage. 
238.8      Sec. 37.  Minnesota Statutes 1998, section 127A.41, 
238.9   subdivision 5, is amended to read: 
238.10     Subd. 5.  [DISTRICT APPEAL OF AID REDUCTION; INSPECTION OF 
238.11  DISTRICT SCHOOLS AND ACCOUNTS AND RECORDS.] A reduction of aid 
238.12  under this section may be appealed to the state board of 
238.13  education and its decision shall be final.  Public schools shall 
238.14  at all times be open to the inspection of the commissioner.  The 
238.15  accounts and records of any district must be open to inspection 
238.16  by the state auditor, the state board, or the commissioner for 
238.17  the purpose of audits conducted under this section.  Each 
238.18  district shall keep for a minimum of three years at least the 
238.19  following:  (1) identification of the annual session days held, 
238.20  together with a record of the length of each session day, (2) a 
238.21  record of each pupil's daily attendance, with entrance and 
238.22  withdrawal dates, and (3) identification of the pupils 
238.23  transported who are reported for transportation aid. 
238.24     <i>(Effective Date:  Section 37 (127A.41, subdivision 5) is</i> 
238.25  <i>effective December 31, 1999.)</i> 
238.26     Sec. 38.  Minnesota Statutes 1998, section 127A.42, 
238.27  subdivision 5, is amended to read: 
238.28     Subd. 5.  [DISPUTE VIOLATIONS; HEARING.] The board to which 
238.29  such notice is given may, by a majority vote of the whole board, 
238.30  decide to dispute that the specified violation exists or that 
238.31  the time allowed is reasonable or the correction specified is 
238.32  correct, or that the commissioner may reduce aids.  The board 
238.33  must give the commissioner written notice of the decision.  If 
238.34  the commissioner, after further investigation as the 
238.35  commissioner deems necessary, adheres to the previous 
238.36  notice, the board shall be entitled to a hearing by the state 
239.1   board the commissioner shall notify the school board of its 
239.2   decision.  The state board must set a hearing time and place and 
239.3   the board of the district must be given notice by mail.  The 
239.4   state board must adopt rules governing the proceedings for 
239.5   hearings.  The hearings must be designed to give a full and fair 
239.6   hearing and permit interested parties an opportunity to produce 
239.7   evidence relating to the issues involved.  The rules may provide 
239.8   that any question of fact to be determined at the hearing may be 
239.9   referred to one or more members of the board or to an employee 
239.10  of the state board acting as a referee to hear evidence and 
239.11  report the testimony taken to the state board.  The state board, 
239.12  or a person designated to receive evidence at a hearing, shall 
239.13  have the same right to issue subpoenas and administer oaths and 
239.14  parties to the hearing shall have the same right to subpoenas 
239.15  issued as are allowed for proceedings before the industrial 
239.16  commission.  A stenographic record must be made of all testimony 
239.17  given and other proceedings during the hearing.  If practicable, 
239.18  rules governing admission of evidence in courts shall apply to 
239.19  the hearing.  The decision of the state board must be in writing 
239.20  and the controlling facts upon which the decision is made must 
239.21  be stated in sufficient detail to apprise the parties and the 
239.22  reviewing court of the basis and reason for the decision.  The 
239.23  decision must be confined to whether any of the specified 
239.24  violations existed at the date of the commissioner's first 
239.25  notice, whether the violations were corrected within the time 
239.26  permitted, and whether the violations require reduction of the 
239.27  state aids under this section. 
239.28     <i>(Effective Date:  Section 38 (127A.42, subdivision 5) is</i> 
239.29  <i>effective December 31, 1999.)</i> 
239.30     Sec. 39.  Minnesota Statutes 1998, section 127A.42, 
239.31  subdivision 6, is amended to read: 
239.32     Subd. 6.  [VIOLATION; AID REDUCTION.] The commissioner 
239.33  shall not reduce state aids payable to the district if the 
239.34  violation specified is corrected within the time permitted, or 
239.35  if the commissioner on being notified of the district board's 
239.36  decision to dispute decides the violation does not exist, or if 
240.1   the state board decides after hearing no violation specified in 
240.2   the commissioner's notice existed at the time of the notice, or 
240.3   that the violations were corrected within the time permitted.  
240.4   Otherwise state aids payable to the district for the year in 
240.5   which the violation occurred shall be reduced as follows:  The 
240.6   total amount of state aids to which the district may be entitled 
240.7   shall be reduced in the proportion that the period during which 
240.8   a specified violation continued, computed from the last day of 
240.9   the time permitted for correction, bears to the total number of 
240.10  days school is held in the district during the year in which a 
240.11  violation exists, multiplied by 60 percent of the basic revenue, 
240.12  as defined in section 126C.10, subdivision 2, of the district 
240.13  for that year. 
240.14     <i>(Effective Date:  Section 39 (127A.42, subdivision 6) is</i> 
240.15  <i>effective December 31, 1999.)</i> 
240.16     Sec. 40.  Minnesota Statutes 1998, section 127A.60, 
240.17  subdivision 1, is amended to read: 
240.18     Subdivision 1.  [DEPARTMENT.] A state department of 
240.19  children, families, and learning is hereby created which shall 
240.20  be maintained under the direction of a state board of education 
240.21  composed of nine representative citizens of the state, at least 
240.22  one of whom shall reside in each congressional district in the 
240.23  state. 
240.24     Of the nine representative citizens of the state who are 
240.25  appointed to the state board of education not less than three 
240.26  members thereof shall previously thereto have served as an 
240.27  elected member of a board of education of a school district 
240.28  however organized. 
240.29     The members of the state board shall be appointed by the 
240.30  governor, with the advice and consent of the senate.  One member 
240.31  shall be chosen annually as president, but no member shall serve 
240.32  as president more than three consecutive years.  The state board 
240.33  shall hold its annual meeting in August.  It shall hold meetings 
240.34  on dates and at places as it designates.  No member shall hold 
240.35  any public office, or represent or be employed by any board of 
240.36  education or school district, public or private, and shall not 
241.1   voluntarily have any personal financial interest in any contract 
241.2   with a board of education or school district, or be engaged in 
241.3   any capacity where a conflict of interest may arise. 
241.4      <i>(Effective Date:  Section 40 (127A.60, subdivision 1) is</i> 
241.5   <i>effective December 31, 1999.)</i> 
241.6      Sec. 41.  Minnesota Statutes 1998, section 127A.66, 
241.7   subdivision 2, is amended to read: 
241.8      Subd. 2.  [ADMINISTRATIVE RULES.] The state board 
241.9   commissioner may adopt new rules and amend them or amend any of 
241.10  its existing rules only under specific authority and consistent 
241.11  with the requirements of chapter 14.  The state board 
241.12  commissioner may repeal any of its the commissioner's existing 
241.13  rules.  Notwithstanding the provisions of section 14.05, 
241.14  subdivision 4, the state board commissioner may grant a variance 
241.15  to its the commissioner's rules upon application by a school 
241.16  district for purposes of implementing experimental programs in 
241.17  learning or school management.  This subdivision shall not 
241.18  prohibit the state board commissioner from making technical 
241.19  changes or corrections to its the commissioner's rules. 
241.20     <i>(Effective Date:  Section 41 (127A.66, subdivision 2) is</i> 
241.21  <i>effective December 31, 1999.)</i> 
241.22     Sec. 42.  Minnesota Statutes 1998, section 128C.01, 
241.23  subdivision 4, is amended to read: 
241.24     Subd. 4.  [BOARD.] (a) The league must have a 20-member 
241.25  governing board. 
241.26     (1) The governor must appoint four members according to 
241.27  section 15.0597.  Each of the four appointees must be a parent.  
241.28  At least one of them must be an American Indian, an Asian, a 
241.29  Black, or a Hispanic. 
241.30     (2) The Minnesota association of secondary school 
241.31  principals must appoint two of its members. 
241.32     (3) The remaining 14 members must be selected according to 
241.33  league bylaws.  
241.34     (b) The terms, compensation, removal of members, and the 
241.35  filling of membership vacancies are governed by section 15.0575, 
241.36  except that the four-year terms begin on August 1 and end on 
242.1   July 31.  As provided by section 15.0575, members who are 
242.2   full-time state employees or full-time employees of school 
242.3   districts or other political subdivisions of the state may not 
242.4   receive any per diem payment for service on the board. 
242.5      Sec. 43.  Minnesota Statutes 1998, section 128C.02, is 
242.6   amended by adding a subdivision to read: 
242.7      Subd. 9.  [PURCHASING.] (a) In purchasing goods and 
242.8   services, the league must follow all laws that apply to school 
242.9   districts under sections 123B.52 and 471.345. 
242.10     (b) The league may not enforce any national rule that 
242.11  directs or controls school purchasing of athletic supplies and 
242.12  equipment. 
242.13     Sec. 44.  [128C.075] [COOPERATIVE SPONSORSHIPS.] 
242.14     An interscholastic conference or other entity must not 
242.15  adopt a policy that limits a school board's power to enter into 
242.16  a cooperative sponsorship agreement. 
242.17     Sec. 45.  Minnesota Statutes 1998, section 128C.12, 
242.18  subdivision 1, is amended to read: 
242.19     Subdivision 1.  [DUES AND EVENTS REVENUE.] The state 
242.20  auditor annually must examine the accounts of, and audit all 
242.21  money paid to, the state high school league by its members.  The 
242.22  audit must include financial and compliance issues.  The state 
242.23  auditor must also audit all money derived from any event 
242.24  sponsored by the league.  League audits must include audits of 
242.25  administrative regions of the league.  The league and its 
242.26  administrative regions may not contract with private auditors.  
242.27  The scope of the state auditor's examinations of the league must 
242.28  be agreed upon by the board and the state auditor, provided that 
242.29  all requirements of this section must be met. 
242.30     Sec. 46.  Minnesota Statutes 1998, section 128C.20, 
242.31  subdivision 1, is amended to read: 
242.32     Subdivision 1.  [ANNUALLY.] Each year the commissioner of 
242.33  children, families, and learning shall obtain and review the 
242.34  following information about the league: 
242.35     (1) an accurate and concise summary of the annual financial 
242.36  and compliance audit prepared by the state auditor that includes 
243.1   information about the compensation of and the expenditures by 
243.2   the executive director of the league and league staff; 
243.3      (2) a list of all complaints filed with the league and all 
243.4   lawsuits filed against the league and the disposition of those 
243.5   complaints and lawsuits; 
243.6      (3) an explanation of the executive director's performance 
243.7   review; 
243.8      (4) information about the extent to which the league has 
243.9   implemented its affirmative action policy, its comparable worth 
243.10  plan, and its sexual harassment and violence policy and rules; 
243.11  and 
243.12     (5) an evaluation of any proposed changes in league policy. 
243.13     The commissioner may examine any league activities or 
243.14  league-related issues when the commissioner believes this review 
243.15  is warranted. 
243.16     Sec. 47.  Minnesota Statutes 1998, section 128C.20, 
243.17  subdivision 2, is amended to read: 
243.18     Subd. 2.  [RECOMMEND LAWS RECOMMENDATIONS.] The board of 
243.19  directors shall submit any proposed changes in league bylaws or 
243.20  policies to the commissioner for review and comment at least 30 
243.21  days before the effective date of these bylaws or policies.  The 
243.22  commissioner shall review and report to the board of directors, 
243.23  the representative assembly, and the chairs of the house and 
243.24  senate government operations and education committees on the 
243.25  proposed changes within seven days of completing the review and 
243.26  comment.  The commissioner may recommend to the legislature 
243.27  whether any legislation is made necessary by league activities.  
243.28     Sec. 48.  Minnesota Statutes 1998, section 136D.281, 
243.29  subdivision 4, is amended to read: 
243.30     Subd. 4.  [REVERSE REFERENDUM.] The intermediate school 
243.31  board shall not may sell and issue bonds for acquisition or 
243.32  betterment purposes if:  (1) each member school district board 
243.33  has adopted a resolution authorizing the project; (2) the 
243.34  intermediate board has prepared and published in a newspaper of 
243.35  general circulation in the district a notice of the public 
243.36  meeting on the intermediate district's intent to sell bonds; and 
244.1   (3) the intermediate board has adopted a resolution authorizing 
244.2   the bonds.  The resolution becomes final unless within 30 days 
244.3   after the meeting where the resolution was adopted a petition 
244.4   requesting an election signed by a number of qualified voters in 
244.5   excess of five percent of the registered voters of the 
244.6   intermediate school district on the day the petition is filed 
244.7   with the board.  If the petition is filed, then the board 
244.8   resolution authorizing the sale and issuance of bonds has no 
244.9   effect until the question of their issuance has been submitted 
244.10  to the voters of the intermediate school district at a special 
244.11  election held in and for the intermediate district.  The date of 
244.12  the election, the question to be submitted, and all other 
244.13  necessary conduct of the election shall be fixed by the 
244.14  intermediate school board.  The election shall be conducted and 
244.15  canvassed under the direction of the intermediate school board 
244.16  in accordance with chapter 205A, insofar as applicable. 
244.17     If a majority of the total number of votes cast on the 
244.18  question within the intermediate school district is in favor of 
244.19  the question, the intermediate school board may proceed with the 
244.20  sale and issuance of the bonds. 
244.21     The bonds shall be general obligations of the intermediate 
244.22  school district; however, each member school district must each 
244.23  year certify its proportionate share of the debt service levy on 
244.24  the bonds, with the allocation of its share of that levy 
244.25  determined in accordance with the resolution authorizing the 
244.26  project previously adopted by each member school board.  For 
244.27  purposes of section 123B.53, the debt service levies certified 
244.28  for this purpose by an individual member school district shall 
244.29  be considered debt service levies of that school district.  By 
244.30  July 1 and December 1 of each year, the school board of each 
244.31  member school district shall transfer to the intermediate school 
244.32  district an amount equal to 50 percent of the debt service levy 
244.33  certified by that member school district in the previous fiscal 
244.34  year to pay its proportionate share. 
244.35     Sec. 49.  Minnesota Statutes 1998, section 136D.741, 
244.36  subdivision 4, is amended to read: 
245.1      Subd. 4.  [REVERSE REFERENDUM.] The intermediate school 
245.2   board shall not may sell and issue bonds for acquisition or 
245.3   betterment purposes if:  (1) each member school district board 
245.4   has adopted a resolution authorizing the project; (2) the 
245.5   intermediate board has prepared and published in a newspaper of 
245.6   general circulation in the district a notice of the public 
245.7   meeting on the intermediate district's intent to sell bonds; and 
245.8   (3) the intermediate board has adopted a resolution authorizing 
245.9   the bonds.  The resolution becomes final unless within 30 days 
245.10  after the meeting where the resolution was adopted a petition 
245.11  requesting an election signed by a number of qualified voters in 
245.12  excess of five percent of the registered voters of the 
245.13  intermediate school district on the day the petition is filed 
245.14  with the board.  If the petition is filed, then the board 
245.15  resolution authorizing the sale and issuance of bonds has no 
245.16  effect until the question of their issuance has been submitted 
245.17  to the voters of the intermediate school district at a special 
245.18  election held in and for such intermediate district.  The date 
245.19  of such election, the question to be submitted, and all other 
245.20  necessary conduct of such election shall be fixed by the 
245.21  intermediate school board and said election shall be conducted 
245.22  and canvassed under the direction of the intermediate school 
245.23  board in accordance with chapter 205A, insofar as the same may 
245.24  be deemed applicable. 
245.25     If a majority of the total number of votes cast on the 
245.26  question within the intermediate school district is in favor of 
245.27  the question, the intermediate school board may thereupon 
245.28  proceed with the sale and the issuance of said bonds. 
245.29     The bonds shall be general obligations of the intermediate 
245.30  school district; however, each member school district must each 
245.31  year certify its proportionate share of the debt service levy on 
245.32  the bonds, with the allocation of its share of that levy 
245.33  determined in accordance with the resolution authorizing the 
245.34  project previously adopted by each member school board.  For 
245.35  purposes of section 123B.53, the debt service levies certified 
245.36  for this purpose by an individual member school district shall 
246.1   be considered debt service levies of that school district.  By 
246.2   July 1 and December 1 of each year, the school board of each 
246.3   member school district shall transfer to the intermediate school 
246.4   district an amount equal to 50 percent of the debt service levy 
246.5   certified by that member school district in the previous fiscal 
246.6   year to pay its proportionate share. 
246.7      Sec. 50.  Minnesota Statutes 1998, section 136D.88, 
246.8   subdivision 4, is amended to read: 
246.9      Subd. 4.  [REVERSE REFERENDUM.] The intermediate school 
246.10  board shall not may sell and issue bonds for acquisition or 
246.11  betterment purposes if:  (1) each member school district board 
246.12  has adopted a resolution authorizing the project; (2) the 
246.13  intermediate board has prepared and published in a newspaper of 
246.14  general circulation in the district a notice of the public 
246.15  meeting on the intermediate district's intent to sell bonds; and 
246.16  (3) the intermediate board has adopted a resolution authorizing 
246.17  the bonds.  The resolution becomes final unless within 30 days 
246.18  after the meeting where the resolution was adopted a petition 
246.19  requesting an election signed by a number of qualified voters in 
246.20  excess of five percent of the registered voters of the 
246.21  intermediate school district on the day the petition is filed 
246.22  with the board.  If the petition is filed, then the board 
246.23  resolution authorizing the sale and issuance of bonds has no 
246.24  effect until the question of their issuance has been submitted 
246.25  to the voters of the intermediate school district at a special 
246.26  election held in and for the intermediate district.  The date of 
246.27  the election, the question to be submitted, and all other 
246.28  necessary conduct of the election shall be fixed by the 
246.29  intermediate school board.  The election shall be conducted and 
246.30  canvassed under the direction of the intermediate school board 
246.31  in accordance with chapter 205A, insofar as applicable. 
246.32     If a majority of the total number of votes cast on the 
246.33  question within the intermediate school district is in favor of 
246.34  the question, the intermediate school board may thereupon 
246.35  proceed with the sale and issuance of the bonds. 
246.36     The bonds shall be general obligations of the intermediate 
247.1   school district; however, each member school district must each 
247.2   year certify its proportionate share of the debt service levy on 
247.3   the bonds, with the allocation of its share of that levy 
247.4   determined in accordance with the resolution authorizing the 
247.5   project previously adopted by each member school board.  For 
247.6   purposes of section 123B.53, the debt service levies certified 
247.7   for this purpose by an individual member school district shall 
247.8   be considered debt service levies of that school district.  By 
247.9   July 1 and December 1 of each year, the school board of each 
247.10  member school district shall transfer to the intermediate school 
247.11  district an amount equal to 50 percent of the debt service levy 
247.12  certified by that member school district in the previous fiscal 
247.13  year to pay its proportionate share. 
247.14     Sec. 51.  Minnesota Statutes 1998, section 169.01, 
247.15  subdivision 6, is amended to read: 
247.16     Subd. 6.  [SCHOOL BUS.] "School bus" means a motor vehicle 
247.17  used to transport pupils to or from a school defined in section 
247.18  120A.22, or to or from school-related activities, by the school 
247.19  or a school district, or by someone under an agreement with the 
247.20  school or a school district.  A school bus does not include a 
247.21  motor vehicle transporting children to or from school for which 
247.22  parents or guardians receive direct compensation from a school 
247.23  district, a motor coach operating under charter carrier 
247.24  authority, a transit bus providing services as defined in 
247.25  section 174.22, subdivision 7, or a vehicle otherwise qualifying 
247.26  as a type III vehicle under paragraph (5), when the vehicle is 
247.27  properly registered and insured and being driven by an employee 
247.28  or agent of a school district for nonscheduled transportation.  
247.29  A school bus may be type A, type B, type C, or type D, or type 
247.30  III as follows:  
247.31     (1) A "type A school bus" is a conversion or body 
247.32  constructed upon a van-type or cutaway front section vehicle 
247.33  with a left-side driver's door, designed for carrying more than 
247.34  ten persons.  This definition includes two classifications:  
247.35  type A-I, with a gross vehicle weight rating (GVWR) over 10,000 
247.36  pounds; and type A-II, with a GVWR of 10,000 pounds or less. 
248.1      (2) A "type B school bus" is a conversion or body 
248.2   constructed and installed upon a van or front-section vehicle 
248.3   chassis, or stripped chassis, with a gross vehicle weight rating 
248.4   of more than 10,000 pounds, designed for carrying more than ten 
248.5   persons.  Part of the engine is beneath or behind the windshield 
248.6   and beside the driver's seat.  The entrance door is behind the 
248.7   front wheels. 
248.8      (3) A "type C school bus" is a body installed upon a flat 
248.9   back cowl chassis with a gross vehicle weight rating of more 
248.10  than 10,000 pounds, designed for carrying more than ten 
248.11  persons.  All of the engine is in front of the windshield and 
248.12  the entrance door is behind the front wheels.  A type C school 
248.13  bus has a maximum length of 45 feet.  
248.14     (4) A "type D school bus" is a body installed upon a 
248.15  chassis, with the engine mounted in the front, midship or rear, 
248.16  with a gross vehicle weight rating of more than 10,000 pounds, 
248.17  designed for carrying more than ten persons.  The engine may be 
248.18  behind the windshield and beside the driver's seat; it may be at 
248.19  the rear of the bus, behind the rear wheels, or midship between 
248.20  the front and rear axles.  The entrance door is ahead of the 
248.21  front wheels.  A type D school bus has a maximum length of 45 
248.22  feet.  
248.23     (5) Type III school buses and type III Head Start buses are 
248.24  restricted to passenger cars, station wagons, vans, and buses in 
248.25  service after January 1, 1999, having an original a maximum 
248.26  manufacturer's rated seating capacity of ten or fewer people, 
248.27  including the driver, and a gross vehicle weight rating of 
248.28  10,000 pounds or less.  In this subdivision, "gross vehicle 
248.29  weight rating" means the value specified by the manufacturer as 
248.30  the loaded weight of a single vehicle.  A "type III school bus" 
248.31  and "type III Head Start bus" must not be outwardly equipped and 
248.32  identified as a type A, B, C, or D school bus or type A, B, C, 
248.33  or D Head Start bus.  A van or bus converted to a seating 
248.34  capacity of ten or fewer and placed in service on or after 
248.35  August 1, 1999, must have been originally manufactured to comply 
248.36  with the passenger safety standards. 
249.1      Sec. 52.  Minnesota Statutes 1998, section 169.03, 
249.2   subdivision 6, is amended to read: 
249.3      Subd. 6.  [WORKING ON HIGHWAY.] (a) The provisions of this 
249.4   chapter shall not apply to persons, motor vehicles, and other 
249.5   equipment while actually engaged in work upon the highway, 
249.6   except as provided in paragraphs (b) and (c).  
249.7      (b) This chapter shall apply to those persons and vehicles 
249.8   when traveling to or from such work, except that persons 
249.9   operating equipment owned, rented or hired by road authorities 
249.10  shall be exempt from the width, height and length provisions of 
249.11  sections 169.80 and 169.81 and shall be exempt from the weight 
249.12  limitations of this chapter while engaged in snow or ice removal 
249.13  and while engaged in flood control operations on behalf of the 
249.14  state or a local governmental unit. 
249.15     (c) Sections 169.121 to 169.129 and 169.444 apply to 
249.16  persons while actually engaged in work upon the highway. 
249.17     Sec. 53.  Minnesota Statutes 1998, section 171.3215, 
249.18  subdivision 2, is amended to read: 
249.19     Subd. 2.  [CANCELLATION FOR DISQUALIFYING AND OTHER 
249.20  OFFENSES.] Within ten days of receiving notice under section 
249.21  631.40, subdivision 1a, or otherwise receiving notice for a 
249.22  nonresident driver, that a school bus driver has been convicted 
249.23  of a disqualifying offense, the commissioner shall permanently 
249.24  cancel the school bus driver's endorsement on the offender's 
249.25  driver's license and in the case of a nonresident, the driver's 
249.26  privilege to operate a school bus in Minnesota.  A school bus 
249.27  driver whose endorsement or privilege to operate a school bus in 
249.28  Minnesota has been permanently canceled may not apply for 
249.29  reinstatement.  Within ten days of receiving notice under 
249.30  section 631.40, subdivision 1a, or otherwise receiving notice 
249.31  for a nonresident driver, that a school bus driver has been 
249.32  convicted of a gross misdemeanor, or a violation of section 
249.33  169.121, 169.129, or a similar statute or ordinance from another 
249.34  state, and within ten days of revoking a school bus driver's 
249.35  license under section 169.123, the commissioner shall cancel the 
249.36  school bus driver's endorsement on the offender's driver's 
250.1   license or the nonresident's privilege to operate a school bus 
250.2   in Minnesota for five years.  After five years, a school bus 
250.3   driver may apply to the commissioner for reinstatement.  Even 
250.4   after five years, cancellation of a school bus driver's 
250.5   endorsement or a nonresident's privilege to operate a school bus 
250.6   in Minnesota for a violation under section 169.121, 169.123, 
250.7   169.129, or a similar statute or ordinance from another state, 
250.8   shall remain in effect until the driver provides proof of 
250.9   successful completion of an alcohol or controlled substance 
250.10  treatment program.  For a first offense, proof of completion is 
250.11  required only if treatment was ordered as part of a chemical use 
250.12  assessment.  Within ten days of receiving notice under section 
250.13  631.40, subdivision 1a, or otherwise receiving notice for a 
250.14  nonresident driver, that a school bus driver has been convicted 
250.15  of a fourth moving violation in the last three years, the 
250.16  commissioner shall cancel the school bus driver's endorsement on 
250.17  the offender's driver's license or the nonresident's privilege 
250.18  to operate a school bus in Minnesota until one year has elapsed 
250.19  since the last conviction.  A school bus driver who has no new 
250.20  convictions after one year may apply for reinstatement.  Upon 
250.21  canceling the offender's school bus driver's endorsement, the 
250.22  commissioner shall immediately notify the licensed offender of 
250.23  the cancellation in writing, by depositing in the United States 
250.24  post office a notice addressed to the licensed offender at the 
250.25  licensed offender's last known address, with postage prepaid 
250.26  thereon. 
250.27     Sec. 54.  Minnesota Statutes 1998, section 171.3215, 
250.28  subdivision 4, is amended to read: 
250.29     Subd. 4.  [WAIVER OF PERMANENT CANCELLATION.] (a) The 
250.30  commissioner of public safety or the commissioner's designee, in 
250.31  consultation with the division of driver and vehicle services, 
250.32  may waive the permanent cancellation requirement of this section 
250.33  171.3215 for a person convicted of a misdemeanor, a gross 
250.34  misdemeanor, a nonfelony violation of chapter 152, or a felony 
250.35  that is not a violent crime under section 609.1095.  
250.36     (b) After notice to the requesting school district and 
251.1   contract provider of school bus transportation, the commissioner 
251.2   may waive the permanent cancellation requirement after ten years 
251.3   have elapsed since the person was convicted of a violation of 
251.4   section 609.582, subdivision 2, 3, or 4. 
251.5      Sec. 55.  Minnesota Statutes 1998, section 181.101, is 
251.6   amended to read: 
251.7      181.101 [WAGES; HOW OFTEN PAID.] 
251.8      Every employer must pay all wages earned by an employee at 
251.9   least once every 30 31 days on a regular pay day designated in 
251.10  advance by the employer regardless of whether the employee 
251.11  requests payment at longer intervals.  Unless paid earlier, the 
251.12  wages earned during the first half of the first 30-day 31-day 
251.13  pay period become due on the first regular payday following the 
251.14  first day of work.  If wages earned are not paid, the 
251.15  commissioner of labor and industry or the commissioner's 
251.16  representative may demand payment on behalf of an employee.  If 
251.17  payment is not made within ten days of demand, the commissioner 
251.18  may charge and collect the wages earned and a penalty in the 
251.19  amount of the employee's average daily earnings at the rate 
251.20  agreed upon in the contract of employment, not exceeding 15 days 
251.21  in all, for each day beyond the ten-day limit following the 
251.22  demand.  Money collected by the commissioner must be paid to the 
251.23  employee concerned.  This subdivision section does not prevent 
251.24  an employee from prosecuting a claim for wages.  This section 
251.25  does not prevent a school district or other public school entity 
251.26  from paying any wages earned by its employees during a school 
251.27  year on regular pay days in the manner provided by an applicable 
251.28  contract or collective bargaining agreement, or a personnel 
251.29  policy adopted by the governing board.  For purposes of this 
251.30  section, "employee" includes a person who performs agricultural 
251.31  labor as defined in section 181.85, subdivision 2.  For purposes 
251.32  of this section, wages are earned on the day an employee works. 
251.33     <i>(Effective Date:  Section 55 (181.101) is effective the day</i> 
251.34  <i>following final enactment.)</i> 
251.35     Sec. 56.  Minnesota Statutes 1998, section 209.07, is 
251.36  amended by adding a subdivision to read: 
252.1      Subd. 4.  [SCHOOL DISTRICT BOARD ELECTION; SURETY BOND 
252.2   REQUIREMENTS.] If an election approving the issuance of bonds by 
252.3   a school district is contested, the contestant shall file in the 
252.4   district court a surety bond of at least $5,000 or a greater 
252.5   amount determined necessary by the court to provide security for 
252.6   costs of the contest to the school district, including any 
252.7   additional costs that may be incurred by the school district if 
252.8   the bond issue is delayed.  The court may waive the requirements 
252.9   of this subdivision to the extent it finds that there is a 
252.10  reasonable likelihood that the contestant will prevail and that 
252.11  filing the bond would impose an undue hardship.  If the surety 
252.12  bond is not filed within the time allowed by the court, the 
252.13  contest shall be dismissed with prejudice. 
252.14     Sec. 57.  Laws 1997, First Special Session chapter 4, 
252.15  article 5, section 22, is amended to read: 
252.16     Sec. 22.  [GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING 
252.17  STANDARDS.] 
252.18     Subdivision 1.  [ESTABLISHMENT.] A grant program to promote 
252.19  professional teaching standards through the national board for 
252.20  professional teaching standards for fiscal year 1998 is 
252.21  established to provide eligible teachers with the opportunity to 
252.22  receive national board for professional teaching standards 
252.23  certification and to reward teachers who have already received 
252.24  such certification. 
252.25     Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
252.26  licensed K-12 school teacher employed in a state school.  To be 
252.27  eligible for a grant, the teacher must have been employed as a 
252.28  teacher for a minimum of five school years and demonstrate 
252.29  either that the national board for professional teaching 
252.30  standards has accepted the teacher as a candidate for board 
252.31  certification or that the teacher already has received board 
252.32  certification. 
252.33     Subd. 3.  [APPLICATION PROCESS.] To obtain a grant to 
252.34  participate in the national board for professional teaching 
252.35  standards certification process or to receive a reward for 
252.36  already completing the board certification process, a teacher 
253.1   must submit an application to the commissioner of children, 
253.2   families, and learning in the form and manner the commissioner 
253.3   establishes.  The applicant must demonstrate either that the 
253.4   national board for professional teaching standards has accepted 
253.5   the teacher as a candidate for board certification or that the 
253.6   teacher already has received board certification.  The 
253.7   commissioner shall consult with the state board of teaching when 
253.8   reviewing the applications. 
253.9      Subd. 4.  [GRANT AWARDS; PROCEEDS.] (a) The commissioner 
253.10  may award matching grants of $1,000 each to for eligible 
253.11  teachers who provide a matching amount through collaboration 
253.12  with either a school district, professional organization, or 
253.13  both and are accepted as candidates for national board for 
253.14  professional teaching standards certification.  Grant recipients 
253.15  shall use the grant to participate in the certification 
253.16  process.  The grant award shall be paid to the national board 
253.17  for professional teaching standards in the teacher's name.  
253.18  Within 24 months of receiving certification, a grant recipient 
253.19  must satisfactorily complete one year of teaching service in a 
253.20  state school the certification process or repay the state the 
253.21  amount of the grant, except if the commissioner determines that 
253.22  death or disability prevents the grant recipient from providing 
253.23  the one year of teaching service. 
253.24     (b) The commissioner may award grants to eligible teachers 
253.25  who have earned national board for professional teaching 
253.26  standards certification.  The amount of each grant shall not 
253.27  exceed $1,000 and the commissioner shall establish criteria to 
253.28  determine the actual amount of each grant.  Grant recipients 
253.29  shall use the grant proceeds for educational purposes, including 
253.30  purchasing instructional materials, equipment, or supplies and 
253.31  realizing professional development opportunities.  
253.32     Subd. 5.  [REGIONAL COORDINATORS.] The state shall provide 
253.33  the equivalent of four full-time regional coordinators with two 
253.34  located in the seven-county metropolitan area and two located in 
253.35  greater Minnesota.  $25,000 per year, for the first two years 
253.36  only, shall be provided to cover expenses of the regional 
254.1   coordinators including, but not limited to, travel, meetings, 
254.2   web page maintenance, and cost related to supporting candidate's 
254.3   expenses.  After the first two years, individual school 
254.4   districts must negotiate with the exclusive representative of 
254.5   the teachers in the district for coordinator positions. 
254.6      Subd. 6.  [SALARY INCENTIVE.] A national board certified 
254.7   teacher currently teaching in a state school must receive a 
254.8   $2,000 per year salary incentive for the life of the 
254.9   certificate.  The teacher must continue to provide direct 
254.10  instruction to students in the classroom at least 65 percent of 
254.11  their time to retain the salary incentive. 
254.12     Subd. 7.  [MENTORING INCENTIVE.] (a) A national board 
254.13  certified teacher currently teaching in a state school must 
254.14  receive a $1,500 per year mentoring incentive, if the board 
254.15  certified teacher is trained and acts as a mentor for other 
254.16  national board certification candidates. 
254.17     (b) A school district must receive $5,000 per year for each 
254.18  board certified teacher, if the school district uses a national 
254.19  board certified teacher as a mentor to induct new teachers to 
254.20  provide high quality professional development for career 
254.21  teachers or to help low-achieving schools with school 
254.22  improvement plans and professional development.  The $5,000 must 
254.23  be set aside in a separate account for the specified uses. 
254.24     Sec. 58.  [ALTERNATIVE PATHWAYS FOR TEACHER PREPARATION.] 
254.25     Subdivision 1.  [ESTABLISHMENT.] A program is established 
254.26  to allow Minnesota school districts, in collaboration with 
254.27  public post-secondary institutions that offer a board of 
254.28  teaching approved teacher preparation program, to offer 
254.29  undergraduate and graduate teacher preparation opportunities.  
254.30  The program must provide teacher preparation opportunities that 
254.31  effectively address the needs of different types of schools, 
254.32  students, and teachers. 
254.33     Subd. 2.  [ELIGIBILITY; PROGRAM USES; EMPLOYMENT 
254.34  TERMS.] (a) An applicant under this program must be a school 
254.35  district.  The school district must collaborate with a teacher 
254.36  preparation program approved by the board of teaching and an 
255.1   exclusive representative of the teachers in the district.  The 
255.2   program must be used to assist in improving teacher preparation 
255.3   by placing teacher education students in preschool, elementary, 
255.4   and secondary classrooms or other education settings. 
255.5      (b) Each school district participating in this program may 
255.6   select the teacher preparation model that best promotes 
255.7   understanding the needs of each educational system or 
255.8   institution.  For example: 
255.9      (1) a public school educator may teach courses that assist 
255.10  in preparing future educators or take professional development 
255.11  courses; or 
255.12     (2) a post-secondary teacher may teach courses at the 
255.13  school district or mentor student teachers. 
255.14     Participation is not limited to one school or institution 
255.15  and may involve other participants, including parent/community 
255.16  groups, teacher organizations, and business groups.  Contracting 
255.17  schools and institutions are encouraged to develop program 
255.18  components that engage nontraditional teacher preparation 
255.19  students. 
255.20     (c) Temporary placements made under this program must not 
255.21  have a negative effect on participants' salaries, seniority, or 
255.22  other benefits.  Notwithstanding Minnesota Statutes, sections 
255.23  122A.16 and 123B.02, subdivision 14, a member of the staff of a 
255.24  post-secondary institution may teach in a preschool, elementary 
255.25  school, secondary school, or other education settings, or 
255.26  perform a service agreed upon under this section for which a 
255.27  license would otherwise be required without holding the 
255.28  applicable license.  In addition, a licensed educator employed 
255.29  by a school district may teach or perform a service, agreed upon 
255.30  under this section, at a post-secondary institution without 
255.31  meeting the applicable qualifications of the post-secondary 
255.32  institution.  A district is not subject to Minnesota Statutes, 
255.33  section 127A.43, as a result of entering into an agreement 
255.34  according to this section that enables a post-secondary educator 
255.35  to teach or provide services in the district.  All arrangements 
255.36  and details regarding an exchange must be mutually agreed to by 
256.1   each participating school district and post-secondary 
256.2   institution before implementing the exchange. 
256.3      (d) An educator who held a temporary position or an 
256.4   exchanged position under this section must be continued in or 
256.5   restored to the position previously held, or to a position of 
256.6   like seniority, status, and pay upon return.  Retirement 
256.7   benefits under an employer-sponsored pension or retirement plan 
256.8   must not be reduced because of time spent on an exchange or 
256.9   temporary position under this section. 
256.10     (e) An educator who is continued in or restored to a 
256.11  position under paragraph (d): 
256.12     (1) must be continued or restored without loss of 
256.13  seniority; and 
256.14     (2) may participate in insurance or other benefits offered 
256.15  by the employer under its established rules and practices. 
256.16     Subd. 3.  [APPLICATION PROCESS.] To participate in this 
256.17  program, a school district must submit an application to the 
256.18  commissioner of children, families, and learning in the form and 
256.19  manner established by the commissioner.  The application must 
256.20  describe how the applicant will improve teacher education by 
256.21  providing undergraduate or graduate teacher preparation 
256.22  opportunities in order to effectively address the needs of 
256.23  different types of schools, students, and teachers, and how the 
256.24  applicant will use technology to implement the program.  The 
256.25  commissioner may require additional information from an 
256.26  applicant. 
256.27     Subd. 4.  [PROGRAM PARTICIPANTS; MONETARY AWARDS.] (a) When 
256.28  selecting program participants, the commissioner must determine: 
256.29     (1) whether an applicant has met the requirements of this 
256.30  section; 
256.31     (2) whether the location of a program is particularly 
256.32  suitable for realizing the purpose of this section; 
256.33     (3) the number of teacher candidates, teachers, and 
256.34  students who would participate in the program; 
256.35     (4) the ability of the applicant to demonstrate the 
256.36  positive effect of the program on students enrolled in a 
257.1   participating school district by using standardized test scores, 
257.2   the rate at which students pass the state's reading, math, and 
257.3   writing basic skills test, or other valid and reliable 
257.4   assessment measures; 
257.5      (5) whether public post-secondary institutions with board 
257.6   of teaching approved teacher preparation programs and other 
257.7   organizations representing parents' business interests and 
257.8   community interests are integral participants in the proposed 
257.9   program; 
257.10     (6) whether the program addresses the shortage of teachers 
257.11  in subject areas identified by the commissioner of children, 
257.12  families, and learning; and 
257.13     (7) the ability of the applicant to provide information 
257.14  about the program to interested school districts and 
257.15  post-secondary institutions. 
257.16     (b) The commissioner may select up to five applicants to 
257.17  participate in this program for the 1999-2000 school year and 
257.18  later.  Participants must be located throughout the state.  The 
257.19  commissioner must provide one-time start-up costs of up to 
257.20  $20,000 per participating site. 
257.21     Subd. 5.  [POST-SECONDARY INSTITUTION FUNDING.] A 
257.22  post-secondary institution participating in this program as a 
257.23  contracting party must provide the instructional costs of 
257.24  teacher education students and may charge the students the costs 
257.25  of tuition. 
257.26     Subd. 6.  [EVALUATION.] The commissioner must contract with 
257.27  an independent qualified expert to evaluate the impact of the 
257.28  program on teacher efficacy and student performance and present 
257.29  a report to the commissioner and the education committees of the 
257.30  legislature by February 15, 2005. 
257.31     Sec. 59.  [REALLOCATION OF EDUCATION RESOURCES.] 
257.32     The Minnesota state colleges and universities and the 
257.33  University of Minnesota must set aside a portion of their higher 
257.34  education teacher education resources for teacher preparation 
257.35  programs that are committed to meeting the projected teacher 
257.36  shortages in areas identified by the department of children, 
258.1   families, and learning. 
258.2      Sec. 60.  [BOARD OF TEACHING.] 
258.3      The board of teaching must communicate with school 
258.4   districts, including district human resources personnel, on the 
258.5   procedures available to districts for expediting the hiring of 
258.6   substitute teachers. 
258.7      Sec. 61.  [SCHOOL COUNSELOR ASSESSMENT.] 
258.8      The department of children, families, and learning, in 
258.9   consultation with school districts, shall determine methods of 
258.10  meeting adequate local district needs for licensed school 
258.11  counselors.  The department shall consider recommended ratios, 
258.12  the costs for meeting these ratios, and alternative strategies 
258.13  for collaboration to provide counseling services to pupils, 
258.14  especially in small districts. 
258.15     Sec. 62.  [RULES AND POLICIES.] 
258.16     The revisor of statutes shall recodify state high school 
258.17  league eligibility rules.  The revisor shall work with the 
258.18  league to clarify and eliminate discrepancies and 
258.19  inconsistencies in league rules, policies, and bylaws affecting 
258.20  student eligibility.  The league shall pay the revisor for the 
258.21  cost of this work, as determined by the revisor. 
258.22     Sec. 63.  [HIGH SCHOOL LEAGUE; TRANSITION.] 
258.23     The terms of persons who are members appointed by the 
258.24  governor on the effective date of section 42 are extended until 
258.25  July 31 of the year in which the terms are scheduled to expire. 
258.26     Sec. 64.  [ALTERNATIVE CALENDAR EVALUATION PROJECTS.] 
258.27     Subdivision 1.  [GRANT PROGRAM.] The commissioner of 
258.28  children, families, and learning shall establish a grant program 
258.29  for grants to school districts to evaluate alternative calendar 
258.30  projects, including extended day, week, and year programs.  
258.31  Districts may contract with a higher education institution to 
258.32  conduct more comprehensive longitudinal research on student 
258.33  achievement.  The applicants shall evaluate the following: 
258.34     (1) increased student achievement and other related 
258.35  outcomes, including attitudes, skills, and behavior; 
258.36     (2) quality of instructional time for the regular school 
259.1   day and the extended learning component; 
259.2      (3) quantity of instructional time and effect on student 
259.3   outcomes; and 
259.4      (4) use of technology to enhance student achievement in an 
259.5   extended learning environment. 
259.6      Subd. 2.  [APPLICATION PROCESS.] To obtain a grant, an 
259.7   applicant must submit an application to the commissioner in the 
259.8   form and manner established by the commissioner.  The 
259.9   application must describe how the applicant will evaluate 
259.10  alternative calendar projects as described in subdivision 1. 
259.11     Subd. 3.  [GRANT AWARDS.] The commissioner may award grants 
259.12  to applicants who meet the requirements of this section.  The 
259.13  commissioner must base the amount of the grant on the number of 
259.14  children expected to participate in the program.  Districts 
259.15  receiving grants shall report to the commissioner of children, 
259.16  families, and learning, and to the education committees of the 
259.17  legislature by February 1, 2001, on the results of the 
259.18  alternative calendar study. 
259.19     Sec. 65.  [MODEL STATE POLICY ON STUDENT RECORDS.] 
259.20     Subdivision 1.  [COMMISSIONER OF ADMINISTRATION.] By 
259.21  September 1, 1999, the commissioner of administration shall 
259.22  compile and make available a model policy that accurately 
259.23  reflects state and federal data regulations regarding student 
259.24  records and other data used by government agencies who serve 
259.25  school-aged children.  The model policy shall include procedures 
259.26  and other guidelines detailing allowable use and transfer of 
259.27  data according to state and federal law. 
259.28     Subd. 2.  [RECOMMENDATIONS TO THE LEGISLATURE.] By January 
259.29  15, 2000, the commissioner, in consultation with representatives 
259.30  from federal agencies, state agencies, county governments, 
259.31  school districts, cities, and parents who have an interest in 
259.32  student records and other applicable data, shall make 
259.33  recommendations to the legislature regarding necessary 
259.34  clarifications of state law and any enforcement mechanisms 
259.35  identified as essential for the proper sharing of data. 
259.36     Sec. 66.  [SCHOOL YEAR START DATE.] 
260.1      Subdivision 1.  [GOODHUE.] Notwithstanding Minnesota 
260.2   Statutes, section 120A.40, and Laws 1997, First Special Session 
260.3   chapter 4, article 7, section 49, subdivision 1, for the 
260.4   1999-2000 school year independent school district No. 253, 
260.5   Goodhue, may begin the school year on August 30, 1999. 
260.6      Subd. 2.  [MILACA.] Notwithstanding Minnesota Statutes 
260.7   1996, section 126.12, subdivision 1, and Laws 1997, First 
260.8   Special Session chapter 4, article 7, section 49, subdivision 1, 
260.9   for the 1998-1999 school year only, independent school district 
260.10  No. 912, Milaca, may begin the school year on August 24, 1998. 
260.11     Subd. 3.  [WORTHINGTON.] Notwithstanding Minnesota 
260.12  Statutes, section 120A.40, and Laws 1997, First Special Session 
260.13  chapter 4, article 7, section 49, subdivision 1, for the 
260.14  1999-2000 school year, independent school district No. 518, 
260.15  Worthington, may begin the school year on August 23, 1999. 
260.16     <i>(Effective Date:  Section 66, subdivision 2 (Milaca) is</i> 
260.17  <i>effective retroactive to July 1, 1998.)</i> 
260.18     Sec. 67.  [FUND TRANSFERS.] 
260.19     Subdivision 1.  [WHITE BEAR LAKE.] Notwithstanding 
260.20  Minnesota Statutes, sections 123B.79, 123B.80, and 475.61, 
260.21  subdivision 4, on June 30, 1999, independent school district No. 
260.22  624, White Bear Lake, a district recently out of statutory 
260.23  operating debt, may permanently transfer up to $650,000 from its 
260.24  debt redemption fund to its general fund without making a levy 
260.25  reduction. 
260.26     Subd. 2.  [MONTICELLO.] Notwithstanding Minnesota Statutes, 
260.27  sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 
260.28  30, 1999, independent school district No. 882, Monticello, may 
260.29  permanently transfer up to $650,000 from its debt redemption 
260.30  fund to its general fund. 
260.31     Subd. 3.  [GRAND MEADOW.] Notwithstanding Minnesota 
260.32  Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
260.33  on June 30, 1999, independent school district No. 495, Grand 
260.34  Meadow, may permanently transfer up to $300,000 from its 
260.35  disabled access account in the general fund to its capital 
260.36  fund.  This transfer is contingent upon the school district's 
261.1   successful construction of a new kindergarten through grade 12 
261.2   school. 
261.3      Subd. 4.  [FARIBAULT.] Notwithstanding Minnesota Statutes, 
261.4   section 123B.79, or other law, on or before June 30, 2000, 
261.5   independent school district No. 656, Faribault, may transfer an 
261.6   amount equal to the sale of the school district's excess 
261.7   property from its capital operating account to the undesignated 
261.8   general fund, not to exceed $1,000,000.  This transfer shall be 
261.9   used for the purposes of defraying the district's operating debt 
261.10  and shall not be subject to salary negotiations. 
261.11     Subd. 5.  [WESTONKA.] Notwithstanding Minnesota Statutes, 
261.12  sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 
261.13  30, 1999, independent school district No. 277, Westonka, may 
261.14  permanently transfer up to $235,000 from its debt redemption 
261.15  fund to its general fund without making a levy reduction to help 
261.16  the school district out of statutory operating debt. 
261.17     <i>(Effective Date:  Section 67 (Fund Transfers) is effective</i> 
261.18  <i>the day following final enactment.)</i> 
261.19     Sec. 68.  [STATE BOARD OF EDUCATION CHANGED TO COMMISSIONER 
261.20  OF CHILDREN, FAMILIES, AND LEARNING; OTHER CHANGES.] 
261.21     The provisions of Laws 1998, chapter 398, article 5, 
261.22  section 55, and related sections apply except as provided under 
261.23  this article. 
261.24     <i>(Effective Date:  Section 68 (State Board) is effective</i> 
261.25  <i>December 31, 1999.)</i> 
261.26     Sec. 69.  [APPROPRIATIONS.] 
261.27     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
261.28  LEARNING.] The following sums are appropriated from the general 
261.29  fund to the department of children, families, and learning in 
261.30  the fiscal years indicated. 
261.31     Subd. 2.  [URBAN TEACHER PREPARATION PROGRAM.] For a grant 
261.32  to the Minnesota state colleges and universities for an urban 
261.33  teacher preparation program at Metropolitan State University: 
261.34       $1,800,000     .....     2000 
261.35     This appropriation is available until June 30, 2001. 
261.36     Subd. 3.  [ALTERNATIVE PATHWAYS FOR TEACHER 
262.1   PREPARATION.] For providing program participants under section 
262.2   58 with start-up costs:  
262.3        $750,000       .....     2000
262.4      This appropriation is available until June 30, 2001. 
262.5      The commissioner shall consider a proposal from independent 
262.6   school district No. 138, North Branch. 
262.7      Subd. 4.  [MINNESOTA NEW TEACHER PROJECT.] For the state 
262.8   portion of the Minnesota new teacher project: 
262.9        $1,000,000     .....     2000
262.10       $1,000,000     .....     2001
262.11     Any balance in the first year does not cancel but is 
262.12  available in the second year. 
262.13     Districts participating in the new teacher project may 
262.14  consider programs offered by Hamline university, the Minnesota 
262.15  academy of educators, and other first-year teacher induction 
262.16  programs. 
262.17     Subd. 5.  [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For 
262.18  collaborative urban educator programs providing alternative 
262.19  pathways to licensure: 
262.20         $900,000     .....     2000
262.21         $900,000     .....     2001
262.22     Any balance in the first year does not cancel but is 
262.23  available in the second year. 
262.24     Subd. 6.  [PROFESSIONAL TEACHING STANDARDS.] For grants to 
262.25  promote and reward high professional teaching standards: 
262.26         $800,000     .....     2000
262.27     This appropriation is available until June 30, 2001.  Of 
262.28  this amount, $150,000 is for grants to teachers applying for 
262.29  certification, $190,000 is for regional coordinators, $220,000 
262.30  is for salary incentives, $70,000 is for mentor incentives, and 
262.31  $170,000 is for school district incentives for using national 
262.32  board certified teachers as a mentor. 
262.33     All school district incentives from this appropriation 
262.34  shall be set aside in a separate fund for the induction of new 
262.35  teachers, high quality professional development, school 
262.36  improvement plans, and professional development for staff in 
263.1   low-achieving schools. 
263.2      Subd. 7.  [SCHOOL ADMINISTRATORS RECRUITMENT PROGRAM.] For 
263.3   the Minnesota service cooperatives to plan and establish a 
263.4   school administrators recruitment program to identify and 
263.5   develop potential administrators within Minnesota school 
263.6   districts and collaborate with post-secondary institutions to 
263.7   deliver administrative preparation programs in a nontraditional 
263.8   manner to these potential administrators and alternative 
263.9   pathways to licensure: 
263.10         $100,000     .....     2000 
263.11         $100,000     .....     2001 
263.12     Subd. 8.  [PILLAGER REIMBURSEMENT.] For independent school 
263.13  district No. 116, Pillager, for reimbursement of extraordinary 
263.14  legal expenses due to a lawsuit with statewide implications: 
263.15         $325,000     .....     2000 
263.16     Subd. 9.  [PARTNERS FOR QUALITY SCHOOL IMPROVEMENT.] For 
263.17  the school improvement pilot training program established in 
263.18  Laws 1997, First Special Session chapter 4, article 7, section 
263.19  47: 
263.20         $500,000     .....     2000 
263.21     This appropriation is available until June 30, 2001.  
263.22     Subd. 10.  [ALTERNATIVE CALENDAR EVALUATION PROJECTS.] For 
263.23  alternative calendar evaluation projects: 
263.24         $765,000     .....     2000 
263.25         $615,000     .....     2001 
263.26     $140,000 each year is for a grant to special school 
263.27  district No. 6, South St. Paul, for the operation of an extended 
263.28  day kindergarten program; $75,000 each year is for a grant to 
263.29  independent school district No. 877, Buffalo; and $250,000 each 
263.30  year is for a grant to independent school district No. 624, 
263.31  White Bear Lake. 
263.32     Any balance in the first year does not cancel but is 
263.33  available in the second year. 
263.34     Subd. 11.  [TEACHER LICENSURE PROGRAM TO INCREASE THE 
263.35  NUMBER OF METROPOLITAN AREA TEACHERS OF STUDENTS WITH EMOTIONAL 
263.36  AND BEHAVIORAL DISORDERS.] 
264.1      For implementing a metropolitan area teacher licensure 
264.2   program to enable educational assistants who work with students 
264.3   with emotional and behavioral disorders to enroll in a 
264.4   collaborative and inclusive licensure program for teachers of 
264.5   students with emotional and behavioral disorders that offers the 
264.6   educational assistants the academic support and financial 
264.7   assistance they need to obtain a teaching license in emotional 
264.8   and behavioral disorders: 
264.9          $125,000     .....     2000 
264.10         $125,000     .....     2001 
264.11     This appropriation is available until June 30, 2001. 
264.12     <i>(Effective Date:  Section 69, subdivision 11 (Teacher</i> 
264.13  <i>Licensure Appropriation) is effective July 1, 1999, and is</i> 
264.14  <i>contingent upon proposed Minnesota Rules, part 8710.5600, as</i> 
264.15  <i>published on November 2, 1998, at 23 S.R. 1030, being adopted</i> 
264.16  <i>and the program being certified.  If the proposed rule is</i> 
264.17  <i>adopted and certified after July 1, 1999, section 69,</i> 
264.18  <i>subdivision 11, is effective retroactive to July 1, 1999.)</i> 
264.19     Sec. 70.  [REPEALER.] 
264.20     (a) Minnesota Statutes 1998, section 120A.41, is repealed 
264.21  effective retroactive to March 1, 1999, for the 1999-2000 school 
264.22  year. 
264.23     (b) Minnesota Statutes 1998, sections 127A.42, subdivision 
264.24  8; 127A.60, subdivisions 2, 3, and 4; 127A.61; 127A.62, 
264.25  subdivision 2; 127A.64; and 127A.66, subdivision 1, are repealed 
264.26  effective December 31, 1999. 
264.27     Sec. 71.  [EFFECTIVE DATES.] 
264.28     When preparing the prekindergarten through grade 12 
264.29  education conference committee report for adoption by the 
264.30  legislature, the revisor shall combine all effective date 
264.31  notations in this article into this effective date section. 
264.32                             ARTICLE 8 
264.33                             LIBRARIES 
264.34     Section 1.  Laws 1997, First Special Session chapter 4, 
264.35  article 8, section 4, is amended to read: 
264.36     Sec. 4.  [LIBRARY PILOT PROJECT.] 
265.1      Subdivision 1.  [ESTABLISHMENT.] Notwithstanding law to the 
265.2   contrary and subject to approvals in subdivision 2, a public 
265.3   library may operate as a pilot library project jointly with the 
265.4   school library at Nashwauk-Keewatin high school, located in the 
265.5   city of Nashwauk.  The public library is established to serve 
265.6   persons within the boundaries of independent school district No. 
265.7   319, except the city of Keewatin. 
265.8      Subd. 2.  [APPROVALS.] Operation of the public library is 
265.9   contingent upon a resolution approved by the governing bodies of 
265.10  cities, towns, and unorganized townships within the geographical 
265.11  boundaries of independent school district No. 319, except for 
265.12  the city of Keewatin, entering into a joint powers agreement 
265.13  under Minnesota Statutes 1998, section 471.59, to accomplish the 
265.14  purpose of this section.  The joint powers agreement must 
265.15  provide for continuing the library project if one party to the 
265.16  agreement withdraws from the agreement.  For the purposes of 
265.17  this subdivision, the Itasca county board is designated as the 
265.18  governing body for the unorganized townships. 
265.19     Subd. 3.  [BOARD; APPOINTMENTS.] The resolution joint 
265.20  powers agreement in subdivision 2 shall provide for a library 
265.21  board of five members as follows:  two members appointed by the 
265.22  school board of independent school district No. 319, one member 
265.23  appointed by each town board located within independent school 
265.24  district No. 319 boundaries, one member appointed by the council 
265.25  of the city of Nashwauk, and one member appointed by the Itasca 
265.26  county board to represent the unorganized towns within the 
265.27  school district territory. 
265.28     Subd. 4.  [BOARD TERMS; COMPENSATION.] The library board 
265.29  members shall serve for the term of the pilot program library 
265.30  project.  An appointing authority may remove for misconduct or 
265.31  neglect any member it has appointed to the board and may replace 
265.32  that member by appointment.  Board members shall receive no 
265.33  compensation for their services but may be reimbursed for actual 
265.34  and necessary travel expenses incurred in the discharge of 
265.35  library board duties and activities. 
265.36     Subd. 5.  [FUNDING.] For taxes payable in 1998 and 1999 
266.1   only, The library board may levy a tax in an amount up to 
266.2   $25,000 annually on property located within the boundaries of 
266.3   independent school district No. 319, except the city of 
266.4   Keewatin.  The Itasca county auditor shall collect the tax and 
266.5   distribute it to the library board.  The money may be used for 
266.6   library staff and for the purchase of library materials, 
266.7   including computer software.  The levy must also fund the amount 
266.8   necessary to receive bookmobile services from the Arrowhead 
266.9   regional library system.  For taxes payable in 1998 and 1999 
266.10  only, The county may not levy under Minnesota Statutes, section 
266.11  134.07, for the areas described in this section. 
266.12     Subd. 6.  [BUILDING.] The school district shall provide the 
266.13  physical space and costs associated with operating the library 
266.14  including, but not limited to, heat, light, telephone service, 
266.15  and maintenance. 
266.16     Subd. 7.  [ORGANIZATION.] Immediately after appointment, 
266.17  the library board shall organize by electing one of its number 
266.18  as president and one as secretary, and it may appoint other 
266.19  officers it finds necessary. 
266.20     Subd. 8.  [DUTIES.] The library board shall adopt bylaws 
266.21  and regulations for the library and for the conduct of its 
266.22  business as may be expedient and conformable to law.  It shall 
266.23  have exclusive control of the expenditure of all money collected 
266.24  for it.  The library board shall appoint a qualified library 
266.25  director and other staff, establish the compensation of 
266.26  employees, and remove any of them for cause.  The library board 
266.27  may contract with the school board, the regional library board, 
266.28  or the city in which the library is located to provide 
266.29  personnel, fiscal, or administrative services.  The contract 
266.30  shall state the personnel, fiscal, and administrative services 
266.31  and payments to be provided by each party. 
266.32     Subd. 9.  [CRITERIA.] The library shall meet all 
266.33  requirements in statutes and rules applicable to public 
266.34  libraries and school media centers.  A media supervisor licensed 
266.35  by the board of teaching may be the director of the library.  
266.36  Public parking, restrooms, drinking water, and other necessities 
267.1   shall be easily accessible to library patrons. 
267.2      Subd. 10.  [REPORT.] The library board shall report to the 
267.3   department of children, families, and learning by February 1, 
267.4   1999, about the costs of providing the library service and the 
267.5   number of patrons served. 
267.6      Subd. 11.  [EXPIRATION.] This section expires January 31, 
267.7   2000. 
267.8      Sec. 2.  Laws 1997, First Special Session chapter 4, 
267.9   article 9, section 7, subdivision 2, is amended to read: 
267.10     Subd. 2.  [APPLICATION; ELIGIBILITY.] The commissioner of 
267.11  children, families, and learning shall establish a process and 
267.12  application forms for library sites to apply for grant funds.  
267.13  Libraries must describe how they will cooperate with schools.  
267.14  An applicant must submit a technology plan with the 
267.15  application.  Eligible applicants must, at a minimum, describe 
267.16  how the proposed project is consistent with the technology plan; 
267.17  describe how it ensures interoperability of hardware, software, 
267.18  and telecommunication and meets existing Minnesota technical 
267.19  standards appropriate to the project; identify the specific site 
267.20  needs that the project will address; define the project's 
267.21  expected outcomes; and provide the source, type, and amounts of 
267.22  all matching funds.  To be eligible for a site-based technology 
267.23  learning grant, a library site must: 
267.24     (1) be a school library, a public library, or a partnership 
267.25  of public and school libraries or be a publicly funded or 
267.26  nonprofit library in partnership with school libraries, public 
267.27  libraries, or public library systems; 
267.28     (2) be a member of a regional multicounty, multitype 
267.29  library cooperation system; 
267.30     (3) have each dollar of grant money matched by at least $1 
267.31  of library site money, including in-kind contributions; 
267.32     (3) (4) agree to disseminate and share information about 
267.33  its project; 
267.34     (4) (5) provide a benefit to the greater community; and 
267.35     (5) (6) maintain any ongoing costs of support for the 
267.36  technology project after the initial funding under the grant 
268.1   program. 
268.2      Sec. 3.  Laws 1998, chapter 398, article 9, section 7, is 
268.3   amended to read: 
268.4      Sec. 7.  [DATABASE ACCESS PROGRAM FOR PUBLIC LIBRARIES AND 
268.5   SCHOOL MEDIA CENTERS.] 
268.6      Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
268.7   children, families, and learning and the director of the higher 
268.8   education services office shall establish a program to provide 
268.9   statewide licenses to commercial electronic databases of 
268.10  periodicals, encyclopedias, and associated reference materials 
268.11  for school media centers and, public libraries, state government 
268.12  agency libraries, and public or private college or university 
268.13  libraries.  The commissioner, in consultation with Minitex and 
268.14  in cooperation with the Library Planning Task Force, shall 
268.15  solicit proposals for access licenses to commercial vendors of 
268.16  the databases.  Responses to those proposals shall be evaluated 
268.17  by staff of the office of library development and services in 
268.18  the department of children, families, and learning, Minitex 
268.19  staff, and a representative panel of librarians and school media 
268.20  specialists and public librarians. 
268.21     Subd. 2.  [ELIGIBILITY.] Access to the selected databases 
268.22  shall be made available to a school or school district that is a 
268.23  member of a multicounty, multitype library system as defined in 
268.24  Minnesota Statutes, section 134.001, subdivision 6, or a public 
268.25  library as defined in Minnesota Statutes, section 134.001, 
268.26  subdivision 2, that is a member of a multicounty, multitype 
268.27  library system school media center or library that is eligible 
268.28  to participate in MnLink.  With appropriate authentication any 
268.29  user of an eligible library a school media center or library 
268.30  that is eligible to participate in MnLink may have access to the 
268.31  databases from a remote site. 
268.32     Subd. 3.  [RESOURCE GRANTS.] Graduation rule resource 
268.33  grants are available for the purposes of this section. 
268.34     Sec. 4.  [APPROPRIATIONS.] 
268.35     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
268.36  LEARNING.] The sums indicated in this section are appropriated 
269.1   from the general fund to the department of children, families, 
269.2   and learning for the fiscal years designated.  
269.3      Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
269.4   according to Minnesota Statutes, sections 134.32 to 134.35: 
269.5        $8,495,000      .....     2000 
269.6        $8,570,000      .....     2001 
269.7      The 2000 appropriation includes $782,000 for 1999 and 
269.8   $7,713,000 for 2000.  
269.9      The 2001 appropriation includes $857,000 for 2000 and 
269.10  $7,713,000 for 2001.  
269.11     Subd. 3.  [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 
269.12  grants according to Minnesota Statutes, sections 134.353 and 
269.13  134.354, to multicounty, multitype library systems: 
269.14       $903,000       .....     2000 
269.15       $903,000       .....     2001 
269.16     The 2000 appropriation includes $90,000 for 1999 and 
269.17  $813,000 for 2000.  
269.18     The 2001 appropriation includes $90,000 for 2000 and 
269.19  $813,000 for 2001. 
269.20     Subd. 4.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
269.21  grants to regional public library systems under Minnesota 
269.22  Statutes, section 125B.20, subdivision 3: 
269.23       $1,700,000     .....     2000 
269.24       $1,700,000     .....     2001 
269.25     Any balance in the first year does not cancel but is 
269.26  available in the second year. 
269.27     Subd. 5.  [LIBRARY FOR THE BLIND.] For compact shelving, 
269.28  technology, and staffing for the Minnesota library for the blind 
269.29  and physically handicapped: 
269.30       $550,000     .....     2000 
269.31     Subd. 6.  [DATABASE ACCESS PROGRAM.] For the database 
269.32  access program for public libraries and school media centers 
269.33  under section 3: 
269.34         $350,000     .....     2000 
269.35         $350,000     .....     2001 
269.36                             ARTICLE 9 
270.1                            STATE AGENCIES 
270.2      Section 1.  Minnesota Statutes 1998, section 125A.64, is 
270.3   amended by adding a subdivision to read: 
270.4      Subd. 6.  [EXEMPTION TO LABOR DAY SCHOOL START 
270.5   RESTRICTION.] Notwithstanding Minnesota Statutes, section 
270.6   120A.40, subdivision 1, the board of the Minnesota state 
270.7   academies for the deaf and blind may begin the school year any 
270.8   day prior to September 1. 
270.9      Sec. 2.  Minnesota Statutes 1998, section 129C.10, is 
270.10  amended by adding a subdivision to read: 
270.11     Subd. 8.  [EXEMPTION TO LABOR DAY SCHOOL START 
270.12  RESTRICTION.] Notwithstanding Minnesota Statutes, section 
270.13  120A.40, subdivision 1, the Lola and Rudy Perpich Minnesota 
270.14  center for arts education may begin the school year any day 
270.15  prior to September 1. 
270.16     Sec. 3.  Minnesota Statutes 1998, section 626.556, is 
270.17  amended by adding a subdivision to read: 
270.18     Subd. 3b.  [AGENCY RESPONSIBLE FOR ASSESSING OR 
270.19  INVESTIGATING REPORTS OF MALTREATMENT.] The department of 
270.20  children, families, and learning is the agency responsible for 
270.21  assessing or investigating allegations of child maltreatment in 
270.22  schools as defined in sections 120A.05, subdivisions 9, 11, and 
270.23  13; and 124D.10. 
270.24     Sec. 4.  Minnesota Statutes 1998, section 626.556, 
270.25  subdivision 10b, is amended to read: 
270.26     Subd. 10b.  [DUTIES OF COMMISSIONER; NEGLECT OR ABUSE IN 
270.27  FACILITY.] (a) This section applies to the commissioner of 
270.28  children, families, and learning.  The commissioner of the 
270.29  agency responsible for assessing or investigating the report 
270.30  shall immediately investigate if the report alleges that: 
270.31     (1) a child who is in the care of a facility as defined in 
270.32  subdivision 2 is neglected, physically abused, or sexually 
270.33  abused by an individual in that facility, or has been so 
270.34  neglected or abused by an individual in that facility within the 
270.35  three years preceding the report; or 
270.36     (2) a child was neglected, physically abused, or sexually 
271.1   abused by an individual in a facility defined in subdivision 2, 
271.2   while in the care of that facility within the three years 
271.3   preceding the report.  
271.4      The commissioner shall arrange for the transmittal to the 
271.5   commissioner of reports received by local agencies and may 
271.6   delegate to a local welfare agency the duty to investigate 
271.7   reports.  In conducting an investigation under this section, the 
271.8   commissioner has the powers and duties specified for local 
271.9   welfare agencies under this section.  The commissioner or local 
271.10  welfare agency may interview any children who are or have been 
271.11  in the care of a facility under investigation and their parents, 
271.12  guardians, or legal custodians. 
271.13     (b) Prior to any interview, the commissioner or local 
271.14  welfare agency shall notify the parent, guardian, or legal 
271.15  custodian of a child who will be interviewed in the manner 
271.16  provided for in subdivision 10d, paragraph (a).  If reasonable 
271.17  efforts to reach the parent, guardian, or legal custodian of a 
271.18  child in an out-of-home placement have failed, the child may be 
271.19  interviewed if there is reason to believe the interview is 
271.20  necessary to protect the child or other children in the 
271.21  facility.  The commissioner or local agency must provide the 
271.22  information required in this subdivision to the parent, 
271.23  guardian, or legal custodian of a child interviewed without 
271.24  parental notification as soon as possible after the interview.  
271.25  When the investigation is completed, any parent, guardian, or 
271.26  legal custodian notified under this subdivision shall receive 
271.27  the written memorandum provided for in subdivision 10d, 
271.28  paragraph (c). 
271.29     (c) In conducting investigations under this subdivision the 
271.30  commissioner or local welfare agency shall obtain access to 
271.31  information consistent with subdivision 10, paragraphs (h), (i), 
271.32  and (j). 
271.33     (d) Except for foster care and family child care, the 
271.34  commissioner has the primary responsibility for the 
271.35  investigations and notifications required under subdivisions 10d 
271.36  and 10f for reports that allege maltreatment related to the care 
272.1   provided by or in facilities licensed by the commissioner.  The 
272.2   commissioner may request assistance from the local social 
272.3   service agency. 
272.4      Sec. 5.  [REVISOR INSTRUCTION.] 
272.5      In the next and subsequent editions of Minnesota Statutes 
272.6   and Minnesota Rules, the revisor shall change all references of 
272.7   the "Lola and Rudy Perpich Minnesota center for arts education" 
272.8   to the "Perpich center for arts education." 
272.9      Sec. 6.  [TRANSFER OF PROGRAMS.] 
272.10     The powers and duties of the department of children, 
272.11  families, and learning with respect to drug policy and violence 
272.12  prevention under Minnesota Statutes 1998, sections 119A.25, 
272.13  119A.26, 119A.27, 119A.28, 119A.29, 119A.31, 119A.32, 119A.33, 
272.14  and 119A.34, are transferred to the department of public safety 
272.15  under Minnesota Statutes, section 15.039. 
272.16     Sec. 7.  [APPROPRIATIONS; DEPARTMENT OF CHILDREN, FAMILIES, 
272.17  AND LEARNING.] 
272.18     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
272.19  LEARNING.] The sums indicated in this section are appropriated 
272.20  from the general fund unless otherwise indicated to the 
272.21  department of children, families, and learning for the fiscal 
272.22  years designated. 
272.23     Subd. 2.  [TEACHING AND LEARNING PROGRAM.] (a) For the 
272.24  teaching and learning program in the department of children, 
272.25  families, and learning: 
272.26       $9,979,000     .....     2000 
272.27       $9,926,000     .....     2001 
272.28     (b) Any balance the first year does not cancel but is 
272.29  available in the second year. 
272.30     (c) $21,000 each year is from the trunk highway fund. 
272.31     (d) $621,000 in 2000 and $629,000 in 2001 is for the 
272.32  academic excellence foundation. 
272.33     (e) $673,000 in 2000 and $678,000 in 2001 is for the board 
272.34  of teaching. 
272.35     (f) Notwithstanding Minnesota Statutes, section 15.53, 
272.36  subdivision 2, the commissioner of children, families, and 
273.1   learning may contract with a school district for a period no 
273.2   longer than five consecutive years to work in the development or 
273.3   implementation of the graduation rule.  The commissioner may 
273.4   contract for services and expertise as necessary.  The contracts 
273.5   are not subject to Minnesota Statutes, section 16B.06. 
273.6      Subd. 3.  [LIFEWORK DEVELOPMENT PROGRAM.] For the lifework 
273.7   development program in the department of children, families, and 
273.8   learning: 
273.9        $1,162,000     .....     2000 
273.10       $1,183,000     .....     2001 
273.11     Any balance the first year does not cancel but is available 
273.12  in the second year. 
273.13     Subd. 4.  [MANAGEMENT AND SUPPORT SERVICES PROGRAM.] (a) 
273.14  For the management and support services program in the 
273.15  department of children, families, and learning: 
273.16      $16,987,000     .....     2000 
273.17      $14,421,000     .....     2001 
273.18     (b) Any balance the first year does not cancel but is 
273.19  available in the second year. 
273.20     (c) $165,000 in 2000 is for the state board of education.  
273.21  Any functions of the state board of education that are not 
273.22  specifically transferred to another agency are transferred to 
273.23  the department of children, families, and learning under 
273.24  Minnesota Statutes, section 15.039.  For the position that is 
273.25  classified, upon transferring the responsibilities, the current 
273.26  incumbent is appointed to the classified position without exam 
273.27  or probationary period. 
273.28     (d) $2,000,000 in 2000 is for litigation costs and may only 
273.29  be used for those purposes.  This is a one-time appropriation. 
273.30     (e) The commissioner of children, families, and learning 
273.31  must provide a written update of their strategic plan for 
273.32  technology to the department of finance and the office of 
273.33  technology by April 1, 2000. 
273.34     Subd. 5.  [OFFICE OF COMMUNITY SERVICES PROGRAM.] For the 
273.35  office of community services program in the department of 
273.36  children, families, and learning: 
274.1        $4,188,000     .....     2000 
274.2        $4,255,000     .....     2001 
274.3      Any balance the first year does not cancel but is available 
274.4   the second year. 
274.5      Sec. 8.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
274.6   CENTER FOR ARTS EDUCATION.] 
274.7      The sums indicated in this section are appropriated from 
274.8   the general fund to the center for arts education for the fiscal 
274.9   years designated: 
274.10       $7,239,000     .....     2000
274.11       $7,400,000     .....     2001
274.12     Of each year's appropriation, $154,000 is to fund artist 
274.13  and arts organization participation in the education residency 
274.14  and education technology projects, $75,000 is for school support 
274.15  for the residency project, $121,000 is for further development 
274.16  of the partners:  arts and school for students (PASS) program, 
274.17  including pilots, and $220,000 is to fund the center for arts 
274.18  education base for asset preservation and facility repair.  The 
274.19  guidelines for the education residency project and the pass 
274.20  program shall be developed and defined by the center for arts 
274.21  education in cooperation with the Minnesota arts board.  The 
274.22  Minnesota arts board shall participate in the review and 
274.23  allocation process.  The center for arts education and the 
274.24  Minnesota arts board shall cooperate to fund these projects. 
274.25     Any balance in the first year does not cancel but is 
274.26  available in the second year. 
274.27     Sec. 9.  [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 
274.28     (a) The sums indicated in this section are appropriated 
274.29  from the general fund to the Minnesota state academies for the 
274.30  deaf and the blind for the fiscal years designated:  
274.31      $10,125,000    .....     2000
274.32      $10,344,000    .....     2001 
274.33     (b) Any balance in the first year does not cancel but is 
274.34  available in the second year. 
274.35     (c) $75,000 each year is for asset preservation and 
274.36  facility repair.  
275.1      (d) $15,000 each year is for the cost of holding board 
275.2   meetings in Faribault. 
275.3      Sec. 10.  [REVISOR INSTRUCTION.] 
275.4      In the next and subsequent editions of Minnesota Statutes 
275.5   the revisor shall renumber each section in column A with the 
275.6   corresponding number in column B.  The revisor shall correct all 
275.7   cross-references to be consistent with the renumbering. 
275.8              Column A               Column B
275.9              119A.25                299A.291
275.10             119A.26                299A.292
275.11             119A.27                299A.293
275.12             119A.28                299A.294
275.13             119A.29                299A.295
275.14             119A.31                299A.296
275.15             119A.32                299A.297
275.16             119A.33                299A.298
275.17             119A.34                299A.299
275.18     Sec. 11.  [REPEALER.] 
275.19     Minnesota Statutes 1998, section 119A.04, subdivision 5, is 
275.20  repealed. 
275.21                             ARTICLE 10 
275.22               EDUCATION CODE; COMPULSORY ATTENDANCE 
275.23     Section 1.  Minnesota Statutes 1998, section 120A.05, is 
275.24  amended by adding a subdivision to read: 
275.25     Subd. 3a.  [CHARTER SCHOOL.] "Charter school" means a 
275.26  public school formed according to section 124D.20.  
275.27     Sec. 2.  Minnesota Statutes 1998, section 120A.05, is 
275.28  amended by adding a subdivision to read: 
275.29     Subd. 11a.  [PUBLIC SCHOOL.] "Public school" means a school 
275.30  that receives state funds, provides an education to students 
275.31  needed to meet outcomes or standards determined by the state, 
275.32  and is accountable for the services it provides to students. 
275.33     Sec. 3.  Minnesota Statutes 1998, section 120A.22, 
275.34  subdivision 1, is amended to read: 
275.35     Subdivision 1.  [PARENTAL RESPONSIBILITY.] The parent of a 
275.36  child is primarily responsible for assuring that the child 
276.1   acquires knowledge and skills that are essential for effective 
276.2   citizenship and that the child is enrolled in school or receives 
276.3   other instruction.  
276.4      Sec. 4.  Minnesota Statutes 1998, section 120A.22, 
276.5   subdivision 5, is amended to read: 
276.6      Subd. 5.  [AGES AND TERMS.] (a) Every child between seven 
276.7   and 16 years of age must receive instruction.  Every child under 
276.8   the age of seven who is enrolled in a half-day kindergarten, or 
276.9   a full-day kindergarten program on alternate days, or other 
276.10  kindergarten programs shall receive instruction.  Except as 
276.11  provided in subdivision 6, a parent may withdraw a child under 
276.12  the age of seven from enrollment at any time. 
276.13     (b) A school district by annual board action may require 
276.14  children subject to this subdivision to receive instruction in 
276.15  summer school.  A district that acts to require children to 
276.16  receive instruction in summer school shall establish at the time 
276.17  of its action the criteria for determining which children must 
276.18  receive instruction. If a school board determines that some 
276.19  students in the district must attend summer school, then the 
276.20  truancy laws of chapters 260 and 260A apply to the students 
276.21  required to attend summer school. 
276.22                             ARTICLE 11
276.23                     CURRICULUM AND ASSESSMENT 
276.24     Section 1.  Minnesota Statutes 1998, section 120B.11, 
276.25  subdivision 5, is amended to read: 
276.26     Subd. 5.  [REPORT.] (a) By October 1 of each year, the 
276.27  school board shall use standard statewide reporting procedures 
276.28  the commissioner develops and adopt a report that includes the 
276.29  following: 
276.30     (1) student performance goals for meeting state graduation 
276.31  standards adopted for that year; 
276.32     (2) results of local assessment data, and any additional 
276.33  test data; 
276.34     (3) the annual school district improvement plans; 
276.35     (4) information about district and learning site progress 
276.36  in realizing previously adopted improvement plans; and 
277.1      (5) the amount and type of revenue attributed to each 
277.2   education site as defined in section 123B.04, subdivision 2. 
277.3      (b) The school board shall publish the report in the local 
277.4   newspaper with the largest circulation in the district or by 
277.5   mail.  The board shall make a copy of the report available to 
277.6   the public for inspection.  The board shall send a copy of the 
277.7   report to the commissioner of children, families, and learning 
277.8   by October 15 of each year. 
277.9      (c) The title of the report shall contain the name and 
277.10  number of the school district and read "Annual Report on 
277.11  Curriculum, Instruction, and Student Performance."  The report 
277.12  must include at least the following information about advisory 
277.13  committee membership: 
277.14     (1) the name of each committee member and the date when 
277.15  that member's term expires; 
277.16     (2) the method and criteria the school board uses to select 
277.17  committee members; and 
277.18     (3) the date by which a community resident must apply to 
277.19  next serve on the committee. 
277.20     Sec. 2.  [REPEALER.] 
277.21     Minnesota Statutes 1998, sections 120B.10; 120B.11, 
277.22  subdivisions 3, 4, and 7; and 120B.24, are repealed. 
277.23                             ARTICLE 12
277.24           STUDENT RIGHTS, RESPONSIBILITIES, AND BEHAVIOR 
277.25     Section 1.  Minnesota Statutes 1998, section 121A.06, is 
277.26  amended to read: 
277.27     121A.06 [REPORTS OF DANGEROUS WEAPON INCIDENTS IN SCHOOL 
277.28  ZONES.] 
277.29     Subdivision 1.  [DEFINITIONS.] As used in this section: 
277.30     (1) "dangerous weapon" has the meaning given it in section 
277.31  609.02, subdivision 6; and 
277.32     (2) "school" has the meaning given it in section 120A.22, 
277.33  subdivision 4; and 
277.34     (3) "school zone" has the meaning given it in section 
277.35  152.01, subdivision 14a, clauses (1) and (3). 
277.36     Subd. 2.  [REPORTS; CONTENT.] By January 1, 1994, The 
278.1   commissioner, in consultation with the criminal and juvenile 
278.2   information policy group, shall develop maintain a standardized 
278.3   form to be used by schools to report incidents involving the use 
278.4   or possession of a dangerous weapon in school zones.  The form 
278.5   shall include the following information: 
278.6      (1) a description of each incident, including a description 
278.7   of the dangerous weapon involved in the incident; 
278.8      (2) where, at what time, and under what circumstances the 
278.9   incident occurred; 
278.10     (3) information about the offender, other than the 
278.11  offender's name, including the offender's age; whether the 
278.12  offender was a student and, if so, where the offender attended 
278.13  school; and whether the offender was under school expulsion or 
278.14  suspension at the time of the incident; 
278.15     (4) information about the victim other than the victim's 
278.16  name, if any, including the victim's age; whether the victim was 
278.17  a student and, if so, where the victim attended school; and if 
278.18  the victim was not a student, whether the victim was employed at 
278.19  the school; 
278.20     (5) the cost of the incident to the school and to the 
278.21  victim; and 
278.22     (6) the action taken by the school administration to 
278.23  respond to the incident. 
278.24     The commissioner also shall develop an alternative 
278.25  reporting format that allows school districts to provide 
278.26  aggregate data, with an option to use computer technology to 
278.27  report the data. 
278.28     Subd. 3.  [REPORTS; FILING REQUIREMENTS.] By February 1 and 
278.29  July 1 of each year, each school shall report incidents 
278.30  involving the use or possession of a dangerous weapon in school 
278.31  zones to the commissioner.  The reports must be made on the 
278.32  standardized forms or using the alternative format developed by 
278.33  the commissioner under subdivision 2.  The commissioner shall 
278.34  compile the information it receives from the schools and report 
278.35  it annually to the commissioner of public safety, the criminal 
278.36  and juvenile information policy group, and the legislature. 
279.1      Sec. 2.  Minnesota Statutes 1998, section 121A.11, 
279.2   subdivision 1, is amended to read: 
279.3      Subdivision 1.  [DISPLAYED BY SCHOOLS.] Every public school 
279.4   in Minnesota must display an appropriate United States flag when 
279.5   in session.  The flag shall be displayed upon the school grounds 
279.6   or outside the school building, on a proper staff, on every 
279.7   legal holiday occurring during the school term and at such other 
279.8   times as the board of the district may direct.  The flag must be 
279.9   displayed within the principal rooms of the school building at 
279.10  all other times while school is in session. 
279.11     Sec. 3.  Minnesota Statutes 1998, section 121A.15, is 
279.12  amended to read: 
279.13     121A.15 [HEALTH STANDARDS; IMMUNIZATIONS; SCHOOL CHILDREN.] 
279.14     Subdivision 1.  [IMMUNIZATION REQUIREMENT.] Except as 
279.15  provided in subdivisions 3, 4, and 10, no person over two months 
279.16  old may be allowed to enroll or remain enrolled in any 
279.17  elementary or secondary school or child care facility in this 
279.18  state until the person has submitted to the administrator or 
279.19  other person having general control and supervision of the 
279.20  school or child care facility, one of the following statements: 
279.21     (1) a statement from a physician or a public clinic which 
279.22  provides immunizations an immunization provider stating that the 
279.23  person has received immunization, consistent with medically 
279.24  acceptable standards, against measles after having attained the 
279.25  age of 12 months, rubella, diphtheria, tetanus, pertussis, 
279.26  polio, mumps, haemophilus influenza type b, and hepatitis B; or 
279.27     (2) a statement from a physician or a public clinic which 
279.28  provides immunizations an immunization provider stating that the 
279.29  person has received immunizations, consistent with medically 
279.30  acceptable standards, against measles after having attained the 
279.31  age of 12 months, rubella, mumps, and haemophilus influenza type 
279.32  b and that the person has commenced a schedule of immunizations 
279.33  for diphtheria, tetanus, pertussis, polio, and hepatitis B and 
279.34  which indicates the month and year of each immunization received.
279.35     Subd. 2.  [SCHEDULE OF IMMUNIZATIONS.] No person who has 
279.36  commenced a treatment schedule of immunization pursuant to 
280.1   subdivision 1, clause (2), may remain enrolled in any child care 
280.2   facility, elementary, or secondary school in this state after 18 
280.3   months of enrollment unless there is submitted to the 
280.4   administrator, or other person having general control and 
280.5   supervision of the school or child care facility, a statement 
280.6   from a physician or a public clinic which provides immunizations 
280.7   an immunization provider that the person has completed the 
280.8   primary schedule of immunizations for diphtheria, tetanus, 
280.9   pertussis, polio, and hepatitis B.  The statement must include 
280.10  the month, day, and year of each additional immunization 
280.11  received.  For a child less than seven years of age, a primary 
280.12  schedule of immunizations shall consist of four doses of vaccine 
280.13  for diphtheria, tetanus, and pertussis and three doses of 
280.14  vaccine for poliomyelitis and hepatitis B.  For a child seven 
280.15  years of age or older, a primary schedule of immunizations shall 
280.16  consist of three doses of vaccine for diphtheria, tetanus, 
280.17  polio, and hepatitis B as specified in subdivision 10. 
280.18     Subd. 3.  [EXEMPTIONS FROM IMMUNIZATIONS.] (a) If a person 
280.19  is at least seven years old and has not been immunized against 
280.20  pertussis, the person must not be required to be immunized 
280.21  against pertussis. 
280.22     (b) If a person is at least 18 years old and has not 
280.23  completed a series of immunizations against poliomyelitis, the 
280.24  person must not be required to be immunized against 
280.25  poliomyelitis.  
280.26     (c) If a statement, signed by a physician, is submitted to 
280.27  the administrator or other person having general control and 
280.28  supervision of the school or child care facility stating that an 
280.29  immunization is contraindicated for medical reasons or that 
280.30  laboratory confirmation of the presence of adequate immunity 
280.31  exists, the immunization specified in the statement need not be 
280.32  required.  
280.33     (d) If a notarized statement signed by the minor child's 
280.34  parent or guardian or by the emancipated person is submitted to 
280.35  the administrator or other person having general control and 
280.36  supervision of the school or child care facility stating that 
281.1   the person has not been immunized as prescribed in subdivision 1 
281.2   because of the conscientiously held beliefs of the parent or 
281.3   guardian of the minor child or of the emancipated person, the 
281.4   immunizations specified in the statement shall not be required.  
281.5   This statement must also be forwarded to the commissioner of the 
281.6   department of health.  
281.7      (e) If the person is under 15 months, the person is not 
281.8   required to be immunized against measles, rubella, or mumps. 
281.9      (f) If a person is at least five years old and has not been 
281.10  immunized against haemophilus influenza type b, the person is 
281.11  not required to be immunized against haemophilus influenza type 
281.12  b. 
281.13     Subd. 4.  [SUBSTITUTE IMMUNIZATION STATEMENT.] (a) A person 
281.14  who is enrolling or enrolled in an elementary or secondary 
281.15  school or child care facility may substitute a statement from 
281.16  the emancipated person or a parent or guardian if the person is 
281.17  a minor child in lieu of the statement from a physician or 
281.18  public clinic which provides immunizations an immunization 
281.19  provider.  If the statement is from a parent or guardian or 
281.20  emancipated person, the statement must indicate the month and 
281.21  year of each immunization given. 
281.22     (b) In order for the statement to be acceptable for a 
281.23  person who is enrolling in an elementary school and who is six 
281.24  years of age or younger, it must indicate that the following was 
281.25  given:  no less than one dose of vaccine each for measles, 
281.26  mumps, and rubella given separately or in combination; no less 
281.27  than four doses of vaccine for poliomyelitis, unless the third 
281.28  dose was given after the fourth birthday, then three doses are 
281.29  minimum; no less than five doses of vaccine for diphtheria, 
281.30  tetanus, and pertussis, unless the fourth dose was given after 
281.31  the fourth birthday, then four doses are minimum; and no less 
281.32  than three doses of vaccine for hepatitis B as specified in 
281.33  subdivision 10.  
281.34     (c) In order for the statement to be consistent with 
281.35  subdivision 10 and acceptable for a person who is enrolling in 
281.36  an elementary or secondary school and is age seven through age 
282.1   19, the statement must indicate that the person has received no 
282.2   less than one dose of vaccine each for measles, mumps, and 
282.3   rubella given separately or in combination, and no less than 
282.4   three doses of vaccine for poliomyelitis, diphtheria, tetanus, 
282.5   and hepatitis B.  
282.6      (d) In order for the statement to be acceptable for a 
282.7   person who is enrolling in a secondary school, and who was born 
282.8   after 1956 and is 20 years of age or older, the statement must 
282.9   indicate that the person has received no less than one dose of 
282.10  vaccine each for measles, mumps, and rubella given separately or 
282.11  in combination, and no less than one dose of vaccine for 
282.12  diphtheria and tetanus within the preceding ten years. 
282.13     (e) In order for the statement to be acceptable for a 
282.14  person who is enrolling in a child care facility and who is at 
282.15  least 15 months old but who has not reached five years of age, 
282.16  it must indicate that the following were given:  no less than 
282.17  one dose of vaccine each for measles, mumps, and rubella given 
282.18  separately or in combination; no less than one dose of vaccine 
282.19  for haemophilus influenza type b; no less than four doses of 
282.20  vaccine for diphtheria, tetanus, and pertussis; and no less than 
282.21  three doses of vaccine for poliomyelitis. 
282.22     (f) In order for the statement to be acceptable for a 
282.23  person who is enrolling in a child care facility and who is five 
282.24  or six years of age, it must indicate that the following was 
282.25  given:  no less than one dose of vaccine each for measles, 
282.26  mumps, and rubella given separately or in combination; no less 
282.27  than four doses of vaccine for diphtheria, tetanus, and 
282.28  pertussis; and no less than three doses of vaccine for 
282.29  poliomyelitis. 
282.30     (g) In order for the statement to be acceptable for a 
282.31  person who is enrolling in a child care facility and who is 
282.32  seven years of age or older, the statement must indicate that 
282.33  the person has received no less than one dose of vaccine each 
282.34  for measles, mumps, and rubella given separately or in 
282.35  combination and consistent with subdivision 10, and no less than 
282.36  three doses of vaccine for poliomyelitis, diphtheria, and 
283.1   tetanus.  
283.2      (h) The commissioner of health, on finding that any of the 
283.3   above requirements are not necessary to protect the public's 
283.4   health, may suspend for one year that requirement.  
283.5      Subd. 5.  [TRANSFER OF IMMUNIZATION STATEMENTS.] If a 
283.6   person transfers from one elementary or secondary school to 
283.7   another, the school board of a public school district or the 
283.8   administrator of a nonpublic school may allow the person up to a 
283.9   maximum of 30 days to submit one or more of the statements as 
283.10  specified in subdivision 1 or 3, during which time the person 
283.11  may enroll in and attend the school.  If a person enrolls in a 
283.12  child care facility in which at least 75 percent of children in 
283.13  the facility participate on a one-time only or occasional basis 
283.14  to a maximum of 45 hours per child, per month, or is placed in a 
283.15  facility by a crisis nursery, the person shall be exempt from 
283.16  all requirements of this section for up to five consecutive 
283.17  days, starting from the first day of attendance. 
283.18     Subd. 6.  [SUSPENSION OF IMMUNIZATION REQUIREMENT.] The 
283.19  commissioner of health, on finding that an immunization required 
283.20  pursuant to this section is not necessary to protect the 
283.21  public's health, may suspend for one year the requirement that 
283.22  children receive that immunization. 
283.23     Subd. 7.  [FILE ON IMMUNIZATION RECORDS.] Each school or 
283.24  child care facility shall maintain on file immunization records 
283.25  for all persons in attendance that contain the information 
283.26  required by subdivisions 1, 2, and 3.  The school shall maintain 
283.27  the records for at least five years after the person attains the 
283.28  age of majority.  The department of health and the board of 
283.29  health, as defined in section 145A.02, subdivision 2, in whose 
283.30  jurisdiction the school or child care facility is located, shall 
283.31  have access to the files maintained pursuant to this 
283.32  subdivision.  When a person transfers to another elementary or 
283.33  secondary school or child care facility, the administrator or 
283.34  other person having general control and supervision of the 
283.35  school or child care facility shall assist the person's parent 
283.36  or guardian in the transfer of the immunization file to the 
284.1   person's new school or child care facility within 30 days of the 
284.2   transfer.  Upon the request of a public or private 
284.3   post-secondary educational institution, as defined in section 
284.4   135A.14, the administrator or other person having general 
284.5   control or supervision of a school shall assist in the transfer 
284.6   of a student's immunization file to the post-secondary 
284.7   institution. 
284.8      Subd. 8.  [REPORT.] The administrator or other person 
284.9   having general control and supervision of the elementary or 
284.10  secondary school shall file a report with the commissioner on 
284.11  all persons enrolled in the school.  The superintendent of each 
284.12  district shall file a report with the commissioner for all 
284.13  persons within the district receiving instruction in a home 
284.14  school in compliance with sections 120A.22 and 120A.24.  The 
284.15  parent of persons receiving instruction in a home school shall 
284.16  submit the statements as required by subdivisions 1, 2, 3, and 4 
284.17  to the superintendent of the district in which the person 
284.18  resides by October 1 of each school year.  The school report 
284.19  must be prepared on forms developed jointly by the commissioner 
284.20  of health and the commissioner of children, families, and 
284.21  learning and be distributed to the local districts by the 
284.22  commissioner of health.  The school report must state the number 
284.23  of persons attending the school, the number of persons who have 
284.24  not been immunized according to subdivision 1 or 2, and the 
284.25  number of persons who received an exemption under subdivision 3, 
284.26  clause (c) or (d).  The school report must be filed with the 
284.27  commissioner of children, families, and learning within 60 days 
284.28  of the commencement of each new school term.  Upon request, a 
284.29  district must be given a 60-day extension for filing the school 
284.30  report.  The commissioner of children, families, and learning 
284.31  shall forward the report, or a copy thereof, to the commissioner 
284.32  of health who shall provide summary reports to boards of health 
284.33  as defined in section 145A.02, subdivision 2.  The administrator 
284.34  or other person having general control and supervision of the 
284.35  child care facility shall file a report with the commissioner of 
284.36  human services on all persons enrolled in the child care 
285.1   facility.  The child care facility report must be prepared on 
285.2   forms developed jointly by the commissioner of health and the 
285.3   commissioner of human services and be distributed to child care 
285.4   facilities by the commissioner of health.  The child care 
285.5   facility report must state the number of persons enrolled in the 
285.6   facility, the number of persons with no immunizations, the 
285.7   number of persons who received an exemption under subdivision 3, 
285.8   clause (c) or (d), and the number of persons with partial or 
285.9   full immunization histories.  The child care facility report 
285.10  must be filed with the commissioner of human services by 
285.11  November 1 of each year.  The commissioner of human services 
285.12  shall forward the report, or a copy thereof, to the commissioner 
285.13  of health who shall provide summary reports to boards of health 
285.14  as defined in section 145A.02, subdivision 2.  The report 
285.15  required by this subdivision is not required of a family child 
285.16  care or group family child care facility, for prekindergarten 
285.17  children enrolled in any elementary or secondary school provided 
285.18  services according to sections 125A.05 and 125A.06, nor for 
285.19  child care facilities in which at least 75 percent of children 
285.20  in the facility participate on a one-time only or occasional 
285.21  basis to a maximum of 45 hours per child, per month.  
285.22     Subd. 9.  [DEFINITIONS.] As used in this section the 
285.23  following terms have the meanings given them. 
285.24     (a) "Elementary or secondary school" includes any public 
285.25  school as defined in section 120A.05, subdivisions 9, 11, 13, 
285.26  and 17, or nonpublic school, church, or religious organization, 
285.27  or home school in which a child is provided instruction in 
285.28  compliance with sections 120A.22 and 120A.24. 
285.29     (b) "Person enrolled in any elementary or secondary school" 
285.30  means a person born after 1956 and enrolled in grades 
285.31  kindergarten through 12, and a child with a disability receiving 
285.32  special instruction and services as required in sections section 
285.33  125A.03 to 125A.24 and 125A.65, excluding a child being provided 
285.34  services according to section 125A.05, paragraph (c), or 
285.35  125A.06, paragraph (d) subdivisions 3 and 7. 
285.36     (c) "Child care facility" includes those child care 
286.1   programs subject to licensure under chapter 245A, and Minnesota 
286.2   Rules, chapters 9502 and 9503. 
286.3      (d) "Family child care" means child care for no more than 
286.4   ten children at one time of which no more than six are under 
286.5   school age.  The licensed capacity must include all children of 
286.6   any caregiver when the children are present in the residence. 
286.7      (e) "Group family child care" means child care for no more 
286.8   than 14 children at any one time.  The total number of children 
286.9   includes all children of any caregiver when the children are 
286.10  present in the residence.  
286.11     (f) "Administrator" means any individual having general 
286.12  control and supervision of a school or child care facility. 
286.13     (g) "Immunization provider" means any physician, health 
286.14  care provider, or public clinic that provides immunizations. 
286.15     Subd. 10.  [REQUIREMENTS FOR IMMUNIZATION STATEMENTS.] A 
286.16  statement required to be submitted under subdivisions 1, 2, and 
286.17  4 to document evidence of immunization shall include month, day, 
286.18  and year for immunizations administered after January 1, 1990.  
286.19     (a) For persons enrolled in grades 7 and 12 during the 
286.20  1996-1997 school term, the statement must indicate that the 
286.21  person has received a dose of tetanus and diphtheria toxoid no 
286.22  earlier than 11 years of age. 
286.23     (b) Except as specified in paragraph (e), for persons 
286.24  enrolled in grades 7, 8, and 12 during the 1997-1998 school 
286.25  term, the statement must indicate that the person has received a 
286.26  dose of tetanus and diphtheria toxoid no earlier than 11 years 
286.27  of age.  
286.28     (c) Except as specified in paragraph (e) (c), for persons 
286.29  enrolled in grades 7 through 12 during the 1998-1999 school term 
286.30  and for each year thereafter, the statement must indicate that 
286.31  the person has received a dose of tetanus and diphtheria toxoid 
286.32  no earlier than 11 years of age.  
286.33     (d) (b) For persons enrolled in grades 7 through 12 during 
286.34  the 1996-1997 school year and for each year thereafter, the 
286.35  statement must indicate that the person has received at least 
286.36  two doses of vaccine against measles, mumps, and rubella, given 
287.1   alone or separately and given not less than one month apart. 
287.2      (e) (c) A person who has received at least three doses of 
287.3   tetanus and diphtheria toxoids, with the most recent dose given 
287.4   after age six and before age 11, is not required to have 
287.5   additional immunization against diphtheria and tetanus until ten 
287.6   years have elapsed from the person's most recent dose of tetanus 
287.7   and diphtheria toxoid. 
287.8      (f) (d) The requirement for hepatitis B vaccination shall 
287.9   apply to persons enrolling in kindergarten beginning with the 
287.10  2000-2001 school term. 
287.11     (g) (e) The requirement for hepatitis B vaccination shall 
287.12  apply to persons enrolling in grade 7 beginning with the 
287.13  2001-2002 school term. 
287.14     Subd. 11.  [COMMISSIONER OF HUMAN SERVICES; CONTINUED 
287.15  RESPONSIBILITIES.] Nothing in this section relieves the 
287.16  commissioner of human services of the responsibility, under 
287.17  chapter 245A, to inspect and assure that statements required by 
287.18  this section are on file at child care programs subject to 
287.19  licensure. 
287.20     Sec. 4.  Minnesota Statutes 1998, section 121A.23, 
287.21  subdivision 1, is amended to read: 
287.22     Subdivision 1.  [AIDS PROGRAM.] Each district must have a 
287.23  program to prevent and reduce the risk of acquired immune 
287.24  deficiency syndrome (AIDS).  The commissioner of children, 
287.25  families, and learning, in consultation with the commissioner of 
287.26  health, shall assist districts in developing and implementing a 
287.27  program to prevent and reduce the risk of acquired immune 
287.28  deficiency syndrome.  Each district must have a program that 
287.29  includes at least: 
287.30     (1) planning materials, guidelines, and other technically 
287.31  accurate and updated information; 
287.32     (2) a comprehensive, technically accurate, and updated 
287.33  curriculum; 
287.34     (3) cooperation and coordination among districts and SCs; 
287.35     (4) a targeting of adolescents, especially those who may be 
287.36  at high risk of contracting AIDS, for prevention efforts; 
288.1      (5) involvement of parents and other community members; 
288.2      (6) in-service training for appropriate district staff and 
288.3   school board members; 
288.4      (7) collaboration with state agencies and organizations 
288.5   having an AIDS prevention or AIDS risk reduction program; 
288.6      (8) collaboration with local community health services, 
288.7   agencies and organizations having an AIDS prevention or AIDS 
288.8   risk reduction program; and 
288.9      (9) participation by state and local student organizations. 
288.10     The department may provide assistance at a neutral site to 
288.11  a nonpublic school participating in a district's program.  
288.12  District programs must not conflict with the health and wellness 
288.13  curriculum developed under Laws 1987, chapter 398, article 5, 
288.14  section 2, subdivision 7. 
288.15     If a district fails to develop and implement a program to 
288.16  prevent and reduce the risk of AIDS, the department must assist 
288.17  the service cooperative in the region serving that district to 
288.18  develop or implement the program. 
288.19     Sec. 5.  Minnesota Statutes 1998, section 121A.26, is 
288.20  amended to read: 
288.21     121A.26 [SCHOOL PREASSESSMENT TEAMS.] 
288.22     Every public school, and every nonpublic school that 
288.23  participates in a school district chemical abuse program shall 
288.24  establish a chemical abuse preassessment team.  The 
288.25  preassessment team must be composed of classroom teachers, 
288.26  administrators, and to the extent they exist in each school, 
288.27  school nurse, school counselor or psychologist, social worker, 
288.28  chemical abuse specialist, and other appropriate professional 
288.29  staff.  The superintendents or their designees shall designate 
288.30  the team members in the public schools.  The preassessment team 
288.31  is responsible for addressing reports of chemical abuse problems 
288.32  and making recommendations for appropriate responses to the 
288.33  individual reported cases.  Districts shall adopt a process for 
288.34  addressing reports of chemical abuse problems. 
288.35     Within 45 days after receiving an individual reported case, 
288.36  the preassessment team shall make a determination whether to 
289.1   provide the student and, in the case of a minor, the student's 
289.2   parents with information about school and community services in 
289.3   connection with chemical abuse.  Data may be disclosed without 
289.4   consent in health and safety emergencies pursuant to section 
289.5   13.32 and applicable federal law and regulations.  
289.6      Notwithstanding section 138.163, destruction of records 
289.7   identifying individual students shall be governed by this 
289.8   section.  If the preassessment team decides not to provide a 
289.9   student and, in the case of a minor, the student's parents with 
289.10  information about school or community services in connection 
289.11  with chemical abuse, records created or maintained by the 
289.12  preassessment team about the student shall be destroyed not 
289.13  later than six months after the determination is made.  If the 
289.14  preassessment team decides to provide a student and, in the case 
289.15  of a minor, the student's parents with information about school 
289.16  or community services in connection with chemical abuse, records 
289.17  created or maintained by the preassessment team about the 
289.18  student shall be destroyed not later than six months after the 
289.19  student is no longer enrolled in the district. 
289.20     Sec. 6.  Minnesota Statutes 1998, section 121A.27, is 
289.21  amended to read: 
289.22     121A.27 [SCHOOL AND COMMUNITY ADVISORY TEAM.] 
289.23     The superintendent, with the advice of the school board, 
289.24  shall establish a school and community advisory team to address 
289.25  chemical abuse problems in the district.  The school and 
289.26  community advisory team must be composed of representatives from 
289.27  the school preassessment team established in section 121A.26, to 
289.28  the extent possible, law enforcement agencies, county attorney's 
289.29  office, social service agencies, chemical abuse treatment 
289.30  programs, parents, and the business community.  The community 
289.31  advisory team shall: 
289.32     (1) build awareness of the problem within the community, 
289.33  identify available treatment and counseling programs for 
289.34  students and develop good working relationships and enhance 
289.35  communication between the schools and other community agencies; 
289.36  and 
290.1      (2) develop a written procedure clarifying the notification 
290.2   process to be used by the chemical abuse preassessment team 
290.3   established under section 121A.26 when a student is believed to 
290.4   be in possession of or under the influence of alcohol or a 
290.5   controlled substance.  The procedure must include contact with 
290.6   the student, and the student's parents or guardian in the case 
290.7   of a minor student.  
290.8      Sec. 7.  Minnesota Statutes 1998, section 121A.28, is 
290.9   amended to read: 
290.10     121A.28 [LAW ENFORCEMENT RECORDS.] 
290.11     A law enforcement agency shall provide notice of any drug 
290.12  incident occurring within the agency's jurisdiction, in which 
290.13  the agency has probable cause to believe a student violated 
290.14  section 152.021, 152.022, 152.023, 152.024, 152.025, 152.027, 
290.15  152.097, or 340A.503, subdivision 1, 2, or 3.  The notice shall 
290.16  be in writing and shall be provided, within two weeks after an 
290.17  incident occurs, to the chemical abuse preassessment team in the 
290.18  school where the student is enrolled. 
290.19     Sec. 8.  Minnesota Statutes 1998, section 121A.29, 
290.20  subdivision 1, is amended to read: 
290.21     Subdivision 1.  [TEACHER'S DUTY.] A teacher in a nonpublic 
290.22  school participating in a school district chemical use program, 
290.23  or a public school teacher, who knows or has reason to believe 
290.24  that a student is using, possessing, or transferring alcohol or 
290.25  a controlled substance while on the school premises or involved 
290.26  in school-related activities, shall immediately notify 
290.27  the school's chemical abuse preassessment team school of this 
290.28  information.  A teacher who complies with this section shall be 
290.29  defended and indemnified under section 466.07, subdivision 1, in 
290.30  any action for damages arising out of the compliance. 
290.31     Sec. 9.  Minnesota Statutes 1998, section 121A.32, 
290.32  subdivision 1, is amended to read: 
290.33     Subdivision 1.  [REQUIREMENT TO WEAR EYE PROTECTIVE 
290.34  DEVICES.] (a) As a condition of enrollment in a course or 
290.35  activity, every person student shall wear industrial quality eye 
290.36  protective devices when participating in, observing or 
291.1   performing any function in connection with, any courses or 
291.2   activities taking place in eye protection areas, as defined in 
291.3   subdivision 3, of any school, college, university or other 
291.4   educational elementary or secondary institution in the state.  
291.5      (b) Industrial quality eye protective devices are defined 
291.6   as those meeting the standards of the American National 
291.7   Standards Institute, currently identified as ANSI 287.1-1968. 
291.8      (c) Any student failing to comply with this requirement may 
291.9   be temporarily suspended from participation in that activity.  
291.10  Repeated failure to comply with this requirement shall result in 
291.11  cancellation of the student from the activity or course. 
291.12     Sec. 10.  Minnesota Statutes 1998, section 121A.34, is 
291.13  amended to read: 
291.14     121A.34 [SCHOOL SAFETY PATROLS.] 
291.15     Subdivision 1.  [ESTABLISHMENT.] In the exercise of 
291.16  authorized control and supervision over pupils attending schools 
291.17  and other educational institutions, both public and private, The 
291.18  governing board or other directing authority of any such school 
291.19  or institution is empowered to authorize the organization and 
291.20  supervision of school safety patrols for the purpose of 
291.21  influencing and encouraging other pupils to refrain from 
291.22  crossing public highways at points other than regular crossings 
291.23  and for the purpose of directing pupils when and where to cross 
291.24  highways.  
291.25     Subd. 2.  [APPOINTMENT OF MEMBERS.] Unless the parents or 
291.26  guardian of a pupil object in writing to the school authorities 
291.27  to the appointment of the pupil on a school safety patrol, it is 
291.28  lawful for any A pupil over nine years of age to old may be 
291.29  appointed and designated as a member of to the patrol in any 
291.30  school in which.  If there are no pupils who have attained such 
291.31  age at least nine years old, then any pupil in the highest grade 
291.32  therein in that school may be so appointed and 
291.33  designated.  The pupil's parent or guardian may object to the 
291.34  appointment in writing to school authorities.  School 
291.35  authorities may also appoint and designate nonpupil adults as 
291.36  members of a school safety patrol on a voluntary or for-hire 
292.1   basis. 
292.2      Subd. 3.  [LIABILITY NOT TO ATTACH.] No liability shall 
292.3   attach either to the A school, educational institution, 
292.4   governing board, directing authority, or any individual 
292.5   director, board member, superintendent, principal, teacher, or 
292.6   other school authority by virtue of the organization, 
292.7   maintenance, or operation of such a school safety patrol shall 
292.8   not be liable because of injuries sustained by any pupil, 
292.9   whether a member of the patrol or otherwise by reason of due to 
292.10  the operation and maintenance of the patrol.  
292.11     Subd. 4.  [IDENTIFY, OPERATION.] Identification and 
292.12  operation of school safety patrols shall be uniform throughout 
292.13  the state and the method of identification and signals to be 
292.14  used shall be as prescribed by the commissioner of public 
292.15  safety.  School safety patrol members may wear fluorescent 
292.16  reflective vests. 
292.17     Sec. 11.  Minnesota Statutes 1998, section 121A.55, is 
292.18  amended to read: 
292.19     121A.55 [POLICIES TO BE ESTABLISHED.] 
292.20     (a) The commissioner of children, families, and learning 
292.21  shall promulgate guidelines to assist each school board.  Each 
292.22  school board shall establish uniform criteria for dismissal and 
292.23  adopt written policies and rules to effectuate the purposes of 
292.24  sections 121A.40 to 121A.56.  The policies shall emphasize 
292.25  preventing dismissals through early detection of problems and 
292.26  shall be designed to address students' inappropriate behavior 
292.27  from recurring.  The policies shall recognize the continuing 
292.28  responsibility of the school for the education of the pupil 
292.29  during the dismissal period.  The alternative educational 
292.30  services, if the pupil wishes to take advantage of them, must be 
292.31  adequate to allow the pupil to make progress towards meeting the 
292.32  graduation standards adopted under section 120B.02 and help 
292.33  prepare the pupil for readmission.  
292.34     (b) An area learning center under section 123A.05 may not 
292.35  prohibit an expelled or excluded pupil from enrolling solely 
292.36  because a district expelled or excluded the pupil.  The board of 
293.1   the area learning center may use the provisions of the Pupil 
293.2   Fair Dismissal Act to exclude a pupil or to require an admission 
293.3   plan. 
293.4      (c) The commissioner shall actively encourage and assist 
293.5   school districts to cooperatively establish alternative 
293.6   educational services within school buildings or at alternative 
293.7   program sites that offer instruction to pupils who are dismissed 
293.8   from school for willfully engaging in dangerous, disruptive, or 
293.9   violent behavior, including for possessing a firearm in a school 
293.10  zone. 
293.11     Sec. 12.  Minnesota Statutes 1998, section 121A.69, 
293.12  subdivision 3, is amended to read: 
293.13     Subd. 3.  [SCHOOL BOARD POLICY.] Each school board shall 
293.14  adopt a written policy governing student or staff hazing.  The 
293.15  policy must apply to student behavior that occurs on or off 
293.16  school property and during and after school hours.  The policy 
293.17  must include reporting procedures and disciplinary consequences 
293.18  for violating the policy.  Disciplinary consequences must be 
293.19  sufficiently severe to deter violations and appropriately 
293.20  discipline prohibited behavior.  Disciplinary consequences must 
293.21  conform with sections 121A.41 to 121A.56.  Each school must 
293.22  include the policy in the student handbook on school policies. 
293.23     Sec. 13.  [REPEALER.] 
293.24     Minnesota Statutes 1998, sections 121A.03, subdivision 3; 
293.25  121A.11, subdivision 2; 121A.16; 121A.23, subdivision 2; 
293.26  121A.32, subdivisions 2, 4, and 5; and 121A.41, subdivision 3, 
293.27  are repealed. 
293.28                             ARTICLE 13
293.29                    TEACHERS AND OTHER EDUCATORS 
293.30     Section 1.  Minnesota Statutes 1998, section 122A.09, 
293.31  subdivision 6, is amended to read: 
293.32     Subd. 6.  [REGISTER OF PERSONS LICENSED.] The executive 
293.33  secretary of the board of teaching shall keep a record of the 
293.34  proceedings of and a register of all persons licensed pursuant 
293.35  to the provisions of this chapter.  The register must show the 
293.36  name, address, license number and the renewal of the license.  
294.1   The board must on July 1, of each year or as soon thereafter as 
294.2   is practicable, compile a list of such duly licensed teachers 
294.3   and transmit a copy of the list to the board.  A copy of the 
294.4   register must be available during business hours at the office 
294.5   of the board to any interested person.  
294.6      Sec. 2.  Minnesota Statutes 1998, section 122A.15, is 
294.7   amended to read: 
294.8      122A.15 [TEACHERS, SUPERVISORY AND SUPPORT PERSONNEL, 
294.9   DEFINITIONS, LICENSURE.] 
294.10     Subdivision 1.  [TEACHERS.] The term "teachers" for the 
294.11  purpose of licensure, means all persons employed in a public 
294.12  school or education district or by a service cooperative as 
294.13  members of the instructional, supervisory, and support staff 
294.14  including superintendents, principals, supervisors, secondary 
294.15  vocational and other classroom teachers, librarians, counselors, 
294.16  school psychologists, school nurses, school social workers, 
294.17  audio-visual directors and coordinators, recreation personnel, 
294.18  media generalists, media supervisors, and speech therapists 
294.19  educational speech-language pathologists.  
294.20     Subd. 2.  [SUPERVISORY PERSONNEL.] "Supervisory personnel" 
294.21  for the purpose of licensure means superintendents, principals, 
294.22  and professional employees who devote 50 percent or more of 
294.23  their time to administrative or supervisory duties over other 
294.24  personnel, and includes athletic coaches.  
294.25     Sec. 3.  Minnesota Statutes 1998, section 122A.22, is 
294.26  amended to read: 
294.27     122A.22 [DISTRICT RECORDING OF TEACHER LICENSES.] 
294.28     No person shall be accounted a qualified teacher until the 
294.29  person has filed for record with the district superintendent 
294.30  where the person intends to teach a license, or certified copy 
294.31  of a license, authorizing the person to teach school in the 
294.32  district school system. 
294.33     Sec. 4.  Minnesota Statutes 1998, section 122A.40, 
294.34  subdivision 3, is amended to read: 
294.35     Subd. 3.  [HIRING, DISMISSING.] School boards must hire or 
294.36  dismiss teachers at duly appropriately called meetings.  Where a 
295.1   husband and wife, brother and sister, or two brothers or 
295.2   sisters, constitute a quorum, no contract employing a teacher 
295.3   shall be made or authorized except upon the unanimous vote of 
295.4   the full board.  A teacher related by blood or marriage, within 
295.5   the fourth degree, computed by the civil law, to a board member 
295.6   shall not be employed except by a unanimous vote of the full 
295.7   board.  The initial employment of the teacher in the district 
295.8   must be by written contract, signed by the teacher and by the 
295.9   chair and clerk.  All subsequent employment of the teacher in 
295.10  the district must be by written contract, signed by the teacher 
295.11  and by the chair and clerk, except where there is a master 
295.12  agreement covering the employment of the teacher.  Contracts for 
295.13  teaching or supervision of teaching can be made only with 
295.14  qualified teachers.  A teacher shall not be required to reside 
295.15  within the employing district as a condition to teaching 
295.16  employment or continued teaching employment.  
295.17     Sec. 5.  Minnesota Statutes 1998, section 122A.40, 
295.18  subdivision 5, is amended to read: 
295.19     Subd. 5.  [PROBATIONARY PERIOD.] The first three 
295.20  consecutive years of a teacher's first teaching experience in 
295.21  Minnesota in a single district is deemed to be a probationary 
295.22  period of employment, and after completion thereof, the 
295.23  probationary period in each district in which the teacher is 
295.24  thereafter employed shall be one year.  The school board must 
295.25  adopt a plan for written evaluation of teachers during the 
295.26  probationary period.  Evaluation must occur at least three times 
295.27  each year for a teacher performing services on 120 or more 
295.28  school days, at least two times each year for a teacher 
295.29  performing services on 60 to 119 school days, and at least one 
295.30  time each year for a teacher performing services on fewer than 
295.31  60 school days.  Days devoted to parent-teacher conferences, 
295.32  teachers' workshops, and other staff development opportunities 
295.33  and days on which a teacher is absent from school must not be 
295.34  included in determining the number of school days on which a 
295.35  teacher performs services.  During the probationary period any 
295.36  annual contract with any teacher may or may not be renewed as 
296.1   the school board shall see fit.  However, The board must give 
296.2   any such probationary teacher whose contract it declines to 
296.3   renew for the following school year written notice to that 
296.4   effect before June 1.  If the teacher requests reasons for any 
296.5   nonrenewal of a teaching contract, the board must give the 
296.6   teacher its reason in writing, including a statement that 
296.7   appropriate supervision was furnished describing the nature and 
296.8   the extent of such supervision furnished the teacher during the 
296.9   employment by the board, within ten days after receiving such 
296.10  request.  The school board may, after a hearing held upon due 
296.11  notice, discharge a teacher during the probationary period for 
296.12  cause, effective immediately, under section 122A.44.  
296.13     Sec. 6.  Minnesota Statutes 1998, section 122A.40, 
296.14  subdivision 8, is amended to read: 
296.15     Subd. 8.  [PEER REVIEW FOR CONTINUING CONTRACT TEACHERS.] A 
296.16  school board and an exclusive representative of the teachers in 
296.17  the district shall develop a peer review process for continuing 
296.18  contract teachers and probationary teachers through joint 
296.19  agreement. 
296.20     Sec. 7.  Minnesota Statutes 1998, section 122A.40, 
296.21  subdivision 10, is amended to read: 
296.22     Subd. 10.  [NEGOTIATED UNREQUESTED LEAVE OF ABSENCE.] The 
296.23  school board and the exclusive bargaining representative of the 
296.24  teachers may negotiate a plan providing for unrequested leave of 
296.25  absence without pay or fringe benefits for as many teachers as 
296.26  may be necessary because of discontinuance of position, lack of 
296.27  pupils, financial limitations, or merger of classes caused by 
296.28  consolidation of districts.  Failing to successfully negotiate 
296.29  such a plan, the provisions of subdivision 11 shall apply.  The 
296.30  negotiated plan must not include provisions which would result 
296.31  in the exercise of seniority by a teacher holding a provisional 
296.32  license, other than a vocational education license, contrary to 
296.33  the provisions of subdivision 11, clause (c), or the 
296.34  reinstatement of a teacher holding a provisional license, other 
296.35  than a vocational education license, contrary to the provisions 
296.36  of subdivision 11, clause (e).  The provisions of section 
297.1   179A.16 do not apply for the purposes of this subdivision. 
297.2      Sec. 8.  Minnesota Statutes 1998, section 122A.40, 
297.3   subdivision 19, is amended to read: 
297.4      Subd. 19.  [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 
297.5   EXPUNGEMENT.] All evaluations and files generated within a 
297.6   school district relating to each individual teacher must be 
297.7   available to each individual teacher upon written request.  
297.8   Effective January 1, 1976, all evaluations and files, wherever 
297.9   generated, relating to each individual teacher must be available 
297.10  to each individual teacher upon written request.  The teacher 
297.11  shall have the right to reproduce any of the contents of the 
297.12  files at the teacher's expense and to submit for inclusion in 
297.13  the file written information in response to any material 
297.14  contained therein. 
297.15     A district may destroy the files as provided by law and 
297.16  must expunge from the teacher's file any material found to be 
297.17  false or inaccurate through the grievance procedure required 
297.18  pursuant to section 179A.20, subdivision 4.  The grievance 
297.19  procedure promulgated by the director of the bureau of mediation 
297.20  services, pursuant to section 179A.04, subdivision 3, clause 
297.21  (h), applies to those principals and supervisory employees not 
297.22  included in an appropriate unit as defined in section 179A.03.  
297.23  Expungement proceedings must be commenced within the time period 
297.24  provided in the collective bargaining agreement for the 
297.25  commencement of a grievance.  If no time period is provided in 
297.26  the bargaining agreement, the expungement proceedings must 
297.27  commence within 15 days after the teacher has knowledge of the 
297.28  inclusion in the teacher's file of the material the teacher 
297.29  seeks to have expunged.  
297.30     Sec. 9.  Minnesota Statutes 1998, section 122A.41, 
297.31  subdivision 15, is amended to read: 
297.32     Subd. 15.  [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 
297.33  EXPUNGEMENT.] All evaluations and files generated within a 
297.34  district relating to each individual teacher must be available 
297.35  to each individual teacher upon the teacher's written request.  
297.36  Effective January 1, 1976, all evaluations and files, wherever 
298.1   generated, relating to each individual teacher must be available 
298.2   to each individual teacher upon the teacher's written request.  
298.3   The teacher has the right to reproduce any of the contents of 
298.4   the files at the teacher's expense and to submit for inclusion 
298.5   in the file written information in response to any material 
298.6   contained therein. 
298.7      A district may destroy the files as provided by law and 
298.8   must expunge from the teacher's file any material found to be 
298.9   false or substantially inaccurate through the grievance 
298.10  procedure required pursuant to section 179A.20, subdivision 4.  
298.11  The grievance procedure promulgated by the director of the 
298.12  bureau of mediation services, pursuant to section 179A.04, 
298.13  subdivision 3, clause (h), applies to those principals and 
298.14  supervisory employees not included in an appropriate unit as 
298.15  defined in section 179A.03.  Expungement proceedings must be 
298.16  commenced within the time period provided in the collective 
298.17  bargaining agreement for the commencement of a grievance.  If no 
298.18  time period is provided in the bargaining agreement, the 
298.19  expungement proceedings must commence within 15 days after the 
298.20  teacher has knowledge of the inclusion in the teacher's file of 
298.21  the material the teacher seeks to have expunged.  
298.22     Sec. 10.  [122A.455] [TEACHER CONTRACTS.] 
298.23     The school board and the exclusive bargaining 
298.24  representative of the teachers must negotiate, if applicable: 
298.25     (1) short-term, limited contracts; 
298.26     (2) summer school contracts; 
298.27     (3) sabbatical leave; 
298.28     (4) faculty and staff exchange programs; and 
298.29     (5) temporary assignments. 
298.30     After May 17, 1999, no independent school district shall 
298.31  enter into a collective bargaining agreement with the exclusive 
298.32  bargaining representative of the teachers that does not include 
298.33  a plan providing for an unrequested leave of absence for 
298.34  teachers. 
298.35     Sec. 11.  Minnesota Statutes 1998, section 122A.51, is 
298.36  amended to read: 
299.1      122A.51 [TEACHER LUNCH PERIOD.] 
299.2      A teacher must be provided with a duty-free lunch period, 
299.3   scheduled according to school board policy or negotiated 
299.4   agreement. 
299.5      Sec. 12.  Minnesota Statutes 1998, section 122A.58, 
299.6   subdivision 1, is amended to read: 
299.7      Subdivision 1.  [TERMINATION; HEARING.] Before a district 
299.8   terminates the coaching duties of an employee who is required to 
299.9   hold a license as an athletic coach from the state board of 
299.10  education a head varsity coach of an interscholastic sport at 
299.11  the secondary school level, the district must notify the 
299.12  employee in writing and state its reason for the proposed 
299.13  termination.  Within 14 days of receiving this notification, the 
299.14  employee may request in writing a hearing on the termination 
299.15  before the board.  If a hearing is requested, the board must 
299.16  hold a hearing within 25 days according to the hearing 
299.17  procedures specified in section 122A.40, subdivision 14, and the 
299.18  termination is final upon the order of the board after the 
299.19  hearing. 
299.20     Sec. 13.  Minnesota Statutes 1998, section 122A.60, 
299.21  subdivision 1, is amended to read: 
299.22     Subdivision 1.  [STAFF DEVELOPMENT COMMITTEE.] A school 
299.23  board must use the revenue authorized in section 122A.61 for 
299.24  in-service education for programs under section 120B.22, 
299.25  subdivision 2, or for staff development plans under this 
299.26  section.  The board must establish a staff development committee 
299.27  to develop the plan, assist site decision-making teams in 
299.28  developing a site plan consistent with the goals of the plan, 
299.29  and evaluate staff development efforts at the site level.  A 
299.30  majority of the advisory committee must be teachers representing 
299.31  various grade levels, subject areas, and special education.  The 
299.32  advisory committee must also include nonteaching staff, parents, 
299.33  and administrators.  Districts must report staff development 
299.34  results and expenditures to the commissioner in the form and 
299.35  manner determined by the commissioner.  The expenditure report 
299.36  must include expenditures by the board for district level 
300.1   activities and expenditures made by the staff.  The report must 
300.2   provide a breakdown of expenditures for (1) curriculum 
300.3   development and programs, (2) in-service education, workshops, 
300.4   and conferences, and (3) the cost of teachers or substitute 
300.5   teachers for staff development purposes.  Within each of these 
300.6   categories, the report must also indicate whether the 
300.7   expenditures were incurred at the district level or the school 
300.8   site level, and whether the school site expenditures were made 
300.9   possible by the grants to school sites that demonstrate 
300.10  exemplary use of allocated staff development revenue.  These 
300.11  expenditures are to be reported using the UFARS system.  The 
300.12  commissioner shall report the staff development expenditure data 
300.13  to the education committees of the legislature by February 15 
300.14  each year.  
300.15     Sec. 14.  Minnesota Statutes 1998, section 122A.68, 
300.16  subdivision 1, is amended to read: 
300.17     Subdivision 1.  [ESTABLISHMENT.] A school district with a 
300.18  teaching residency plan approved by the board of teaching may 
300.19  hire graduates of approved Minnesota teacher preparation 
300.20  programs as teaching residents.  A district shall employ each 
300.21  resident for one school year.  The district and the resident may 
300.22  agree to extend the residency for one additional school year.  A 
300.23  school may employ no more than one teaching resident for every 
300.24  eight full-time equivalent licensed teachers.  No more than 600 
300.25  eligible teachers may be employed as teacher residents in any 
300.26  one school year. 
300.27     Sec. 15.  Minnesota Statutes 1998, section 122A.68, 
300.28  subdivision 7, is amended to read: 
300.29     Subd. 7.  [RECOMMENDATION FOR LICENSURE REQUIREMENTS.] The 
300.30  board of teaching must develop maintain for teachers of students 
300.31  in prekindergarten through grade 12, model teaching residency 
300.32  outcomes and assessments, and mentoring programs. 
300.33     Sec. 16.  Minnesota Statutes 1998, section 122A.69, is 
300.34  amended to read: 
300.35     122A.69 [PRACTICE OR STUDENT TEACHERS.] 
300.36     The board may, by agreements with teacher preparing 
301.1   institutions, arrange for classroom experience in the district 
301.2   for practice or student teachers who have completed not less 
301.3   than two years of an approved teacher education program.  Such 
301.4   practice Student teachers must be provided with appropriate 
301.5   supervision by a fully qualified teacher under rules promulgated 
301.6   by the board.  Practice Student teachers are deemed employees of 
301.7   the school district in which they are rendering services for 
301.8   purposes of workers' compensation; liability insurance, if 
301.9   provided for other district employees in accordance with section 
301.10  123B.23; and legal counsel in accordance with the provisions of 
301.11  section 123B.25. 
301.12     Sec. 17.  Minnesota Statutes 1998, section 122A.70, 
301.13  subdivision 2, is amended to read: 
301.14     Subd. 2.  [APPLICATIONS.] The board of teaching must make 
301.15  application forms available to sites interested in developing or 
301.16  expanding a mentorship program.  A school district, a group of 
301.17  school districts, or a coalition of districts, teachers and 
301.18  teacher education institutions may apply for a teacher 
301.19  mentorship program grant.  The board of teaching, in 
301.20  consultation with the teacher mentoring task force, must approve 
301.21  or disapprove the applications.  To the extent possible, the 
301.22  approved applications must reflect effective mentoring 
301.23  components, include a variety of coalitions and be 
301.24  geographically distributed throughout the state.  The board of 
301.25  teaching must encourage the selected sites to consider the use 
301.26  of its assessment procedures.  
301.27     Sec. 18.  Minnesota Statutes 1998, section 122A.91, is 
301.28  amended to read: 
301.29     122A.91 [DESIGNATED STATE OFFICIAL.] 
301.30     For the purposes of the agreement set forth in section 
301.31  122A.90, the designated state official for this state is the 
301.32  commissioner of children, families, and learning executive 
301.33  secretary of the board of teaching. 
301.34     Sec. 19.  Minnesota Statutes 1998, section 122A.92, is 
301.35  amended to read: 
301.36     122A.92 [RECORD OF CONTRACTS.] 
302.1      Two copies of all contracts made on behalf of this state 
302.2   pursuant to the agreement set forth in section 122A.90 must be 
302.3   kept on file in the office of the commissioner of children, 
302.4   families, and learning board of teaching. 
302.5      Sec. 20.  [REVISOR INSTRUCTION.] 
302.6      In the next and subsequent editions of Minnesota Statutes 
302.7   and Minnesota Rules, the revisor of statutes shall renumber 
302.8   Minnesota Statutes, section 122A.61, subdivision 2, as Minnesota 
302.9   Statutes, section 124D.311.  The revisor shall also make 
302.10  necessary cross-reference changes consistent with the 
302.11  renumbering. 
302.12     Sec. 21.  [REPEALER.] 
302.13     Minnesota Statutes 1998, sections 122A.162; 122A.19, 
302.14  subdivision 2; 122A.32; 122A.33; 122A.40, subdivision 6; 
302.15  122A.42; 122A.43, subdivisions 1, 2, 3, 4, and 6; 122A.45; 
302.16  122A.49; 122A.52; 122A.53; 122A.54; 122A.55; 122A.56; 122A.57; 
302.17  122A.71; 122A.72; and 122A.75, are repealed. 
302.18                             ARTICLE 14
302.19               SCHOOL DISTRICTS; FORMS FOR ORGANIZING 
302.20     Section 1.  [REPEALER.] 
302.21     Minnesota Statutes 1998, sections 123A.06, subdivision 3; 
302.22  123A.07; and 123A.15, subdivision 1, are repealed. 
302.23                             ARTICLE 15
302.24                 SCHOOL DISTRICT POWERS AND DUTIES 
302.25     Section 1.  Minnesota Statutes 1998, section 123B.02, 
302.26  subdivision 1, is amended to read: 
302.27     Subdivision 1.  [BOARD AUTHORITY.] The board must have the 
302.28  general charge of the business of the district, the school 
302.29  houses, and of the interests of the schools thereof.  The 
302.30  board's authority to govern, manage, and control the district, 
302.31  to carry out its duties and responsibilities, and to conduct the 
302.32  business of the district includes implied powers in addition to 
302.33  any specific powers granted by the legislature. 
302.34     Sec. 2.  Minnesota Statutes 1998, section 123B.02, 
302.35  subdivision 2, is amended to read: 
302.36     Subd. 2.  [FACILITIES FOR SCHOOL-AGE CHILDREN.] It is the 
303.1   duty and the function of the district to furnish school 
303.2   facilities to every child of school age residing in any part of 
303.3   the district.  The board may establish and organize and alter 
303.4   and discontinue such grades or schools as it may deem advisable 
303.5   and assign to each school and grade a proper number of pupils.  
303.6   The board shall provide free textbooks for the pupils of the 
303.7   district.  
303.8      Sec. 3.  Minnesota Statutes 1998, section 123B.02, 
303.9   subdivision 3, is amended to read: 
303.10     Subd. 3.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
303.11  SUPPORT.] (a) A district must not be required by any type of 
303.12  formal or informal agreement except an agreement to provide 
303.13  building space according to paragraph (f), including a joint 
303.14  powers agreement, or membership in any cooperative unit defined 
303.15  in section 123A.24, subdivision 2, to participate in or provide 
303.16  financial support for the purposes of the agreement for a time 
303.17  period in excess of four fiscal years, or the time period set 
303.18  forth in this subdivision.  Any agreement, part of an agreement, 
303.19  or other type of requirement to the contrary is void. 
303.20     (b) This subdivision shall not affect the continued 
303.21  liability of a district for its share of bonded indebtedness or 
303.22  other debt incurred as a result of any agreement before July 1, 
303.23  1993.  The district is liable only until the obligation or debt 
303.24  is discharged and only according to the payment schedule in 
303.25  effect on July 1, 1993, except that the payment schedule may be 
303.26  altered for the purpose of restructuring debt or refunding bonds 
303.27  outstanding on July 1, 1993, if the annual payments of the 
303.28  district are not increased and if the total obligation of the 
303.29  school district for its share of outstanding bonds or other debt 
303.30  is not increased. 
303.31     (c) To cease participating in or providing financial 
303.32  support for any of the services or activities relating to the 
303.33  agreement or to terminate participation in the agreement, the 
303.34  board must adopt a resolution and notify other parties to the 
303.35  agreement of its decision on or before February 1 of any year.  
303.36  The cessation or withdrawal shall be effective June 30 of the 
304.1   same year except that for a member of an education district 
304.2   organized under sections 123A.15 to 123A.19 or an intermediate 
304.3   district organized under chapter 136D, cessation or withdrawal 
304.4   shall be effective June 30 of the following fiscal year.  At the 
304.5   option of the board, cessation or withdrawal may be effective 
304.6   June 30 of the following fiscal year for a district 
304.7   participating in any type of agreement.  
304.8      (d) Before issuing bonds or incurring other debt, the 
304.9   governing body responsible for implementing the agreement must 
304.10  adopt a resolution proposing to issue bonds or incur other debt 
304.11  and the proposed financial effect of the bonds or other debt 
304.12  upon each participating district.  The resolution must be 
304.13  adopted within a time sufficient to allow the board to adopt a 
304.14  resolution within the time permitted by this paragraph and to 
304.15  comply with the statutory deadlines set forth in sections 
304.16  122A.40, 122A.41, and 123A.33.  The governing body responsible 
304.17  for implementing the agreement shall notify each participating 
304.18  board of the contents of the resolution.  Within 120 days of 
304.19  receiving the resolution of the governing body, the school board 
304.20  of the participating district shall adopt a resolution stating: 
304.21     (1) its concurrence with issuing bonds or incurring other 
304.22  debt; 
304.23     (2) its intention to cease participating in or providing 
304.24  financial support for the service or activity related to the 
304.25  bonds or other debt; or 
304.26     (3) its intention to terminate participation in the 
304.27  agreement. 
304.28     A board adopting a resolution according to clause (1) is 
304.29  liable for its share of bonded indebtedness or other debt as 
304.30  proposed by the governing body implementing the agreement.  A 
304.31  school board adopting a resolution according to clause (2) is 
304.32  not liable for the bonded indebtedness or other debt, as 
304.33  proposed by the governing body, related to the services or 
304.34  activities in which the district ceases participating or 
304.35  providing financial support.  A board adopting a resolution 
304.36  according to clause (3) is not liable for the bonded 
305.1   indebtedness or other debt proposed by the governing body 
305.2   implementing the agreement. 
305.3      (e) After July 1, 1993, A district is liable according to 
305.4   paragraph (d) for its share of bonded indebtedness or other debt 
305.5   incurred by the governing body implementing the agreement to the 
305.6   extent that the bonds or other debt are directly related to the 
305.7   services or activities in which the district participates or for 
305.8   which the district provides financial support.  The district has 
305.9   continued liability only until the obligation or debt is 
305.10  discharged and only according to the payment schedule in effect 
305.11  at the time the governing body implementing the agreement 
305.12  provides notice to the school board, except that the payment 
305.13  schedule may be altered for the purpose of refunding the 
305.14  outstanding bonds or restructuring other debt if the annual 
305.15  payments of the district are not increased and if the total 
305.16  obligation of the district for the outstanding bonds or other 
305.17  debt is not increased. 
305.18     (f) A district that is a member of a cooperative unit as 
305.19  defined in section 123A.24, subdivision 2, may obligate itself 
305.20  to participate in and provide financial support for an agreement 
305.21  with a cooperative unit to provide school building space for a 
305.22  term not to exceed two years with an option on the part of the 
305.23  district to renew for an additional two years.  
305.24     (g) Notwithstanding any limitations imposed under this 
305.25  subdivision, a school district may, according to section 
305.26  123B.51, subdivision 4, enter into a lease of all or a portion 
305.27  of a schoolhouse that is not needed for school purposes, 
305.28  including, but not limited to, a lease with a term of more than 
305.29  one year. 
305.30     Sec. 4.  Minnesota Statutes 1998, section 123B.04, 
305.31  subdivision 2, is amended to read: 
305.32     Subd. 2.  [AGREEMENT.] (a) Either the school board or 
305.33  the school site decision-making team may request that the school 
305.34  board enter into an agreement with a school site decision-making 
305.35  team concerning the governance, management, or control of the 
305.36  school.  A school site decision-making team may include the 
306.1   school principal, teachers in the school or their designee, 
306.2   other employees in the school, parents of pupils in the school, 
306.3   representatives of pupils in the school, or other members in the 
306.4   community.  The school site decision-making team shall include 
306.5   the school principal or other person having general control and 
306.6   supervision of the school.  A school district must provide 
306.7   notice to parents about site decision-making teams and inform 
306.8   parents about how to be involved with the site decision-making 
306.9   team.  The site decision-making team must reflect the diversity 
306.10  of the student body of the education site.  No more than 
306.11  one-half of the members shall be employees of the district. 
306.12     (b) School site decision-making agreements must delegate 
306.13  powers, duties, and broad management responsibilities to site 
306.14  teams and involve staff members, students as appropriate, and 
306.15  parents in decision making. 
306.16     (c) An agreement shall include a statement of powers, 
306.17  duties, responsibilities, and authority to be delegated to and 
306.18  within the site. 
306.19     (d) An agreement may include: 
306.20     (1) an achievement contract according to subdivision 4; 
306.21     (2) a mechanism to allow principals, or other persons 
306.22  having general control and supervision of the school, to make 
306.23  decisions regarding how financial and personnel resources are 
306.24  best allocated at the site and from whom goods or services are 
306.25  purchased; 
306.26     (3) a mechanism to implement parental involvement programs 
306.27  under section 124D.895 and to provide for effective parental 
306.28  communication and feedback on this involvement at the site 
306.29  level; 
306.30     (4) a provision that would allow the team to determine who 
306.31  is hired into licensed and nonlicensed positions; 
306.32     (5) a provision that would allow teachers to choose the 
306.33  principal or other person having general control; 
306.34     (6) an amount of revenue allocated to the site under 
306.35  subdivision 3; and 
306.36     (7) any other powers and duties determined appropriate by 
307.1   the board. 
307.2      The school board of the district remains the legal employer 
307.3   under clauses (4) and (5). 
307.4      (e) Any powers or duties not delegated to the school site 
307.5   management team in the school site management agreement shall 
307.6   remain with the school board. 
307.7      (f) Approved agreements shall be filed with the 
307.8   commissioner.  If a school board denies a request to enter into 
307.9   a school site management agreement, it shall provide a copy of 
307.10  the request and the reasons for its denial to the commissioner.  
307.11     Sec. 5.  Minnesota Statutes 1998, section 123B.04, 
307.12  subdivision 5, is amended to read: 
307.13     Subd. 5.  [COMMISSIONER'S ROLE.] The commissioner of 
307.14  children, families, and learning, in consultation with 
307.15  appropriate educational organizations, shall:, 
307.16     (1) upon request, provide technical support for districts 
307.17  and sites with agreements under this section; 
307.18     (2) conduct and compile research on the effectiveness of 
307.19  site decision making; and 
307.20     (3) periodically report on and evaluate the effectiveness 
307.21  of site management agreements on a statewide basis. 
307.22     Sec. 6.  Minnesota Statutes 1998, section 123B.09, 
307.23  subdivision 8, is amended to read: 
307.24     Subd. 8.  [DUTIES.] The board must superintend and manage 
307.25  the schools of the district; adopt rules for their organization, 
307.26  government, and instruction; keep registers; and prescribe 
307.27  textbooks and courses of study.  The board may enter into an 
307.28  agreement with a post-secondary institution for secondary or 
307.29  post-secondary nonsectarian courses to be taught at a secondary 
307.30  school, nonsectarian post-secondary institution, or another 
307.31  location. 
307.32     Sec. 7.  Minnesota Statutes 1998, section 123B.143, 
307.33  subdivision 1, is amended to read: 
307.34     Subdivision 1.  [CONTRACT; DUTIES.] All districts 
307.35  maintaining a classified secondary school must employ a 
307.36  superintendent who shall be an ex officio nonvoting member of 
308.1   the school board.  The authority for selection and employment of 
308.2   a superintendent must be vested in the board in all cases.  An 
308.3   individual employed by a board as a superintendent shall have an 
308.4   initial employment contract for a period of time no longer than 
308.5   three years from the date of employment.  Any subsequent 
308.6   employment contract must not exceed a period of three years.  A 
308.7   board, at its discretion, may or may not renew an employment 
308.8   contract.  A board must not, by action or inaction, extend the 
308.9   duration of an existing employment contract.  Beginning 365 days 
308.10  prior to the expiration date of an existing employment contract, 
308.11  a board may negotiate and enter into a subsequent employment 
308.12  contract to take effect upon the expiration of the existing 
308.13  contract.  A subsequent contract must be contingent upon the 
308.14  employee completing the terms of an existing contract.  If a 
308.15  contract between a board and a superintendent is terminated 
308.16  prior to the date specified in the contract, the board may not 
308.17  enter into another superintendent contract with that same 
308.18  individual that has a term that extends beyond the date 
308.19  specified in the terminated contract.  A board may terminate a 
308.20  superintendent during the term of an employment contract for any 
308.21  of the grounds specified in section 122A.40, subdivision 9 or 13.
308.22  A superintendent shall not rely upon an employment contract with 
308.23  a board to assert any other continuing contract rights in the 
308.24  position of superintendent under section 122A.40.  
308.25  Notwithstanding the provisions of sections 122A.40, subdivision 
308.26  10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 
308.27  individual shall have a right to employment as a superintendent 
308.28  based on order of employment in any district.  If two or more 
308.29  districts enter into an agreement for the purchase or sharing of 
308.30  the services of a superintendent, the contracting districts have 
308.31  the absolute right to select one of the individuals employed to 
308.32  serve as superintendent in one of the contracting districts and 
308.33  no individual has a right to employment as the superintendent to 
308.34  provide all or part of the services based on order of employment 
308.35  in a contracting district. The superintendent of a district 
308.36  shall perform the following:  
309.1      (1) visit and supervise the schools in the district, report 
309.2   and make recommendations about their condition when advisable or 
309.3   on request by the board; 
309.4      (2) recommend to the board employment and dismissal of 
309.5   teachers; 
309.6      (3) superintend school grading practices and examinations 
309.7   for promotions; 
309.8      (4) make reports required by the commissioner; 
309.9      (5) (2) by January 10, submit an annual report to the 
309.10  commissioner in a manner prescribed by the commissioner, in 
309.11  consultation with school districts, identifying the expenditures 
309.12  that the district requires to ensure an 80 percent and a 90 
309.13  percent student passage rate on the basic standards test taken 
309.14  in the eighth grade, identifying the amount of expenditures that 
309.15  the district requires to ensure a 99 percent student passage 
309.16  rate on the basic standards test by 12th grade, and how much the 
309.17  district is cross-subsidizing programs with special education, 
309.18  compensatory, and general education revenue; and 
309.19     (6) (3) perform other duties prescribed by the board. 
309.20     Sec. 8.  Minnesota Statutes 1998, section 123B.36, 
309.21  subdivision 1, is amended to read: 
309.22     Subdivision 1.  [SCHOOL BOARDS MAY REQUIRE FEES.] A school 
309.23  board is authorized to require payment of fees in the following 
309.24  areas: 
309.25     (1) in any program where the resultant product, in excess 
309.26  of minimum requirements and at the pupil's option, becomes the 
309.27  personal property of the pupil; 
309.28     (2) admission fees or charges for extra curricular 
309.29  activities, where attendance is optional and where the admission 
309.30  fees or charges a student must pay to attend or participate in 
309.31  an extracurricular activity is the same for all students, 
309.32  regardless of whether the student is enrolled in a public or a 
309.33  home school; 
309.34     (3) a security deposit for the return of materials, 
309.35  supplies, or equipment; 
309.36     (4) personal physical education and athletic equipment and 
310.1   apparel, although any pupil may personally provide it if it 
310.2   meets reasonable requirements and standards relating to health 
310.3   and safety established by the board; 
310.4      (5) items of personal use or products that a student has an 
310.5   option to purchase such as student publications, class rings, 
310.6   annuals, and graduation announcements; 
310.7      (6) fees specifically permitted by any other statute, 
310.8   including but not limited to section 171.05, subdivision 2; 
310.9   provided (i) driver education fees do not exceed the actual cost 
310.10  to the school and school district of providing driver education, 
310.11  and (ii) the driver education courses are open to enrollment to 
310.12  persons between the ages of 15 and 18 who reside or attend 
310.13  school in the school district; 
310.14     (7) field trips considered supplementary to a district 
310.15  educational program; 
310.16     (8) any authorized voluntary student health and accident 
310.17  benefit plan; 
310.18     (9) for the use of musical instruments owned or rented by 
310.19  the district, a reasonable rental fee not to exceed either the 
310.20  rental cost to the district or the annual depreciation plus the 
310.21  actual annual maintenance cost for each instrument; 
310.22     (10) transportation of pupils to and from extra curricular 
310.23  activities conducted at locations other than school, where 
310.24  attendance is optional; 
310.25     (11) transportation of pupils to and from school for which 
310.26  aid for fiscal year 1996 is not authorized under Minnesota 
310.27  Statutes 1994, section 124.223, subdivision 1, and for which 
310.28  levy for fiscal year 1996 is not authorized under Minnesota 
310.29  Statutes 1994, section 124.226, subdivision 5, if a district 
310.30  charging fees for transportation of pupils establishes 
310.31  guidelines for that transportation to ensure that no pupil is 
310.32  denied transportation solely because of inability to pay; 
310.33     (12) motorcycle vehicle safety classroom education courses 
310.34  conducted outside of regular school hours; provided the charge 
310.35  must not exceed the actual cost of these courses to the school 
310.36  district; 
311.1      (13) transportation to and from post-secondary institutions 
311.2   for pupils enrolled under the post-secondary enrollment options 
311.3   program under section 123B.88, subdivision 22.  Fees collected 
311.4   for this service must be reasonable and must be used to reduce 
311.5   the cost of operating the route.  Families who qualify for 
311.6   mileage reimbursement under section 124D.09, subdivision 22, may 
311.7   use their state mileage reimbursement to pay this fee.  If no 
311.8   fee is charged, districts must allocate costs based on the 
311.9   number of pupils riding the route; and 
311.10     (14) admission fees or charges to a part-time student who 
311.11  is over the age of 21 or who has graduated from high school for 
311.12  attending a class or a program at a secondary school. 
311.13     Sec. 9.  Minnesota Statutes 1998, section 123B.43, is 
311.14  amended to read: 
311.15     123B.43 [USE OF INDIVIDUALIZED INSTRUCTIONAL MATERIALS.] 
311.16     (a) The commissioner shall assure that textbooks and 
311.17  individualized instructional materials loaned to nonpublic 
311.18  school pupils are secular, neutral, nonideological and that they 
311.19  are incapable of diversion for religious use.  
311.20     (b) Textbooks and individualized instructional materials 
311.21  must not be used in religious courses, devotional exercises, 
311.22  religious training or any other religious activity.  
311.23     (c) Textbooks and individualized instructional materials 
311.24  must be loaned only to individual pupils upon the request of a 
311.25  parent or guardian or the pupil on a form designated for this 
311.26  use by the commissioner.  The request forms shall provide for 
311.27  verification by the parent or guardian or pupil that the 
311.28  requested textbooks and individualized instructional materials 
311.29  are for the use of the individual pupil in connection with a 
311.30  program of instruction in the pupil's elementary or secondary 
311.31  school.  
311.32     (d) The servicing school district or the intermediary 
311.33  service area must take adequate measures to ensure an accurate 
311.34  and periodic inventory of all textbooks and individualized 
311.35  instructional materials loaned to elementary and secondary 
311.36  school pupils attending nonpublic schools.  The state board of 
312.1   education shall promulgate rules under the provisions of chapter 
312.2   14 to terminate the eligibility of any nonpublic school pupil if 
312.3   the commissioner determines, after notice and opportunity for 
312.4   hearing, that the textbooks or individualized instructional 
312.5   materials have been used in a manner contrary to the provisions 
312.6   of section 123B.41, subdivision 5, 123B.42, or this section or 
312.7   any rules promulgated by the state board of education. 
312.8      (e) Nothing contained in section 123B.41, subdivision 5, 
312.9   123B.42, or this section shall be construed to authorize the 
312.10  making of any payments to a nonpublic school or its faculty, 
312.11  staff or administrators for religious worship or instruction or 
312.12  for any other purpose.  
312.13     Sec. 10.  Minnesota Statutes 1998, section 123B.445, is 
312.14  amended to read: 
312.15     123B.445 [NONPUBLIC EDUCATION COUNCIL.] 
312.16     (a) The commissioner shall appoint a 15-member council on 
312.17  nonpublic education, with the advice and consent of the senate.  
312.18  The 15 members shall represent various areas of the state, 
312.19  represent various methods of providing nonpublic education, and 
312.20  shall be knowledgeable about nonpublic education.  The 
312.21  compensation, removal of members, filling of vacancies, and 
312.22  terms are governed by section 15.0575.  The council shall not 
312.23  expire.  The councill council shall advise the commissioner and 
312.24  the state board on issues affecting nonpublic education and 
312.25  nonpublic schools.  The council may recognize educational 
312.26  accrediting agencies, for the sole purpose of sections 120A.22, 
312.27  120A.24, and 120A.26. 
312.28     (b) A parent or guardian of a nonpublic school pupil or a 
312.29  nonpublic school may file a complaint about services provided 
312.30  under sections 123B.40 to 123B.42, and 123B.44 to 123B.48 with 
312.31  the nonpublic education council.  The council may review the 
312.32  complaint and make a recommendation for resolution to the 
312.33  commissioner. 
312.34     Sec. 11.  Minnesota Statutes 1998, section 123B.49, 
312.35  subdivision 1, is amended to read: 
312.36     Subdivision 1.  [ACTIVITIES OUTSIDE DISTRICT LIMITS.] 
313.1   Whenever it appears to be beneficial and for the best interest 
313.2   of the district and the pupils of the district to carry on any 
313.3   school sport activities or educational activities connected with 
313.4   their studies outside of the territorial limits of the district, 
313.5   The board may authorize such activities to be conducted outside 
313.6   of the territorial limits of the district under such rules and 
313.7   regulations as the board deems sufficient.  The district may pay 
313.8   all necessary costs therefor including transportation from the 
313.9   district funds available. 
313.10     Sec. 12.  Minnesota Statutes 1998, section 123B.49, 
313.11  subdivision 4, is amended to read: 
313.12     Subd. 4.  [BOARD CONTROL AUTHORIZATION OF EXTRACURRICULAR 
313.13  ACTIVITIES.] (a) The board may take charge of and control 
313.14  authorize all extracurricular activities of the teachers and 
313.15  children of the public schools in the district.  Extracurricular 
313.16  activities means all direct and personal services for public 
313.17  school pupils for their enjoyment that are managed and operated 
313.18  under the guidance of an adult or staff member.  
313.19     (b) Extracurricular activities have all of the following 
313.20  characteristics: 
313.21     (1) they are not offered for school credit nor required for 
313.22  graduation; 
313.23     (2) they are generally conducted outside school hours, or 
313.24  if partly during school hours, at times agreed by the 
313.25  participants, and approved by school authorities; 
313.26     (3) the content of the activities is determined primarily 
313.27  by the pupil participants under the guidance of a staff member 
313.28  or other adult. 
313.29     (c) If the board does not take charge of and control 
313.30  authorize extracurricular activities, these activities shall be 
313.31  self-sustaining with all expenses, except direct salary costs 
313.32  and indirect costs of the use of school facilities, met by dues, 
313.33  admissions, or other student fundraising events.  The general 
313.34  fund must reflect only those salaries directly related to and 
313.35  readily identified with the activity and paid by public funds.  
313.36  Other revenues and expenditures for extra curricular activities 
314.1   must be recorded according to the "Manual of Instruction for 
314.2   Uniform Student Activities Accounting for Minnesota School 
314.3   Districts and Area Vocational-Technical Colleges."  
314.4   Extracurricular activities not under board control must have an 
314.5   annual financial audit and must also be audited annually for 
314.6   compliance with this section. 
314.7      (d) If the board takes charge of and controls authorizes 
314.8   extracurricular activities, any or all costs of these activities 
314.9   may be provided from school revenues and all revenues and 
314.10  expenditures for these activities shall be recorded in the same 
314.11  manner as other revenues and expenditures of the district.  
314.12     (e) If the board takes charge of and controls authorizes 
314.13  extracurricular activities, the teachers or pupils in the 
314.14  district must not participate in such activity, nor shall the 
314.15  school name or any allied name be used in connection therewith, 
314.16  except by consent and direction of the board. 
314.17     Sec. 13.  Minnesota Statutes 1998, section 123B.51, 
314.18  subdivision 1, is amended to read: 
314.19     Subdivision 1.  [SITES.] According to section 126C.40, 
314.20  subdivision 1, or 465.71, when funds are available, the board 
314.21  may locate and acquire necessary sites of schoolhouses schools 
314.22  or enlargements, or additions to existing schoolhouse sites 
314.23  schools by lease, purchase or condemnation under the right of 
314.24  eminent domain; it may erect schoolhouses schools on the sites; 
314.25  it may erect or purchase garages for district-owned school 
314.26  buses.  When property is taken by eminent domain by authority of 
314.27  this subdivision when needed by the district for such purposes, 
314.28  the fact that the property has been acquired by the owner under 
314.29  the power of eminent domain or is already devoted to public use, 
314.30  shall not prevent its acquisition by the district.  The board 
314.31  may sell or exchange schoolhouses schools or sites, and execute 
314.32  deeds of conveyance thereof.  
314.33     Sec. 14.  Minnesota Statutes 1998, section 123B.51, 
314.34  subdivision 5, is amended to read: 
314.35     Subd. 5.  [SCHOOLHOUSE SCHOOL CLOSING.] The board may close 
314.36  a schoolhouse school only after a public hearing on the question 
315.1   of the necessity and practicability of the proposed closing.  
315.2   Published notice of the hearing shall be given for two weeks in 
315.3   the official newspaper of the district.  The time and place of 
315.4   the meeting, the description and location of the schoolhouse 
315.5   school, and a statement of the reasons for the closing must be 
315.6   specified in the notice.  Parties requesting to give testimony 
315.7   for and against the proposal shall be heard by the board before 
315.8   it makes a final decision to close or not to close 
315.9   the schoolhouse school.  
315.10     Sec. 15.  Minnesota Statutes 1998, section 123B.73, 
315.11  subdivision 1, is amended to read: 
315.12     Subdivision 1.  [INSPECTION.] The commissioner and the 
315.13  state fire marshal shall develop a plan to inspect once every 
315.14  three years every public school facility used for educational 
315.15  purposes shall contract with the fire marshal to conduct fire 
315.16  safety inspections of all school buildings.  Each school 
315.17  facility shall be inspected once every three years or more 
315.18  frequently at the request of the school district or the 
315.19  commissioner.  Inspections must begin during the 1990-1991 
315.20  school year.  The plan must provide for continued inspection by 
315.21  local units of government of public school facilities that have 
315.22  been inspected by a local unit of government between January 1, 
315.23  1987, and January 1, 1990, and may provide for inspections by 
315.24  local units of government in other situations.  Each inspection 
315.25  report must be filed with the commissioner, the local school 
315.26  board, and the state fire marshal.  Notwithstanding section 
315.27  299F.011, subdivisions 5a and 5b, a variance from the code must 
315.28  be approved by the state fire marshal before taking effect.  The 
315.29  state board may request that the state fire marshal inspect a 
315.30  particular school facility. 
315.31     Sec. 16.  Minnesota Statutes 1998, section 123B.83, 
315.32  subdivision 1, is amended to read: 
315.33     Subdivision 1.  [REDUCE STATUTORY OPERATING DEBT.] (a) 
315.34  Beginning in fiscal year 1978 and in each year thereafter, A 
315.35  district which had statutory operating debt on June 30, 1977 
315.36  pursuant to section 126C.42 must limit its expenditures in each 
316.1   fiscal year so that the amount of its statutory operating debt 
316.2   calculated at the end of that fiscal year is not greater than 
316.3   the amount of the district's statutory operating debt as of June 
316.4   30, 1977, as certified and adjusted by the commissioner, 
316.5   increased by an amount equal to 2-1/2 percent of that district's 
316.6   operating expenditures for the fiscal year for which the 
316.7   statutory operating debt calculation is being made. 
316.8      (b) When a district is no longer required to levy pursuant 
316.9   to section 126C.42, subdivision 1, subdivision 2 is applicable. 
316.10     Sec. 17.  Minnesota Statutes 1998, section 123B.90, 
316.11  subdivision 1, is amended to read: 
316.12     Subdivision 1.  [SCHOOL BUS SAFETY WEEK.] The third week of 
316.13  school is designated as school bus safety week. 
316.14     A school board may designate one day of school bus safety 
316.15  week as school bus driver day. 
316.16     Sec. 18.  Minnesota Statutes 1998, section 123B.90, 
316.17  subdivision 2, is amended to read: 
316.18     Subd. 2.  [STUDENT TRAINING.] (a) Each district must 
316.19  provide public school pupils enrolled in grades kindergarten 
316.20  through 10 with age-appropriate school bus safety training.  The 
316.21  training must be results-oriented and shall consist of both 
316.22  classroom instruction and practical training using a school 
316.23  bus.  Upon completing the training, a student shall be able to 
316.24  demonstrate knowledge and understanding of at least the 
316.25  following competencies and concepts: 
316.26     (1) transportation by school bus is a privilege and not a 
316.27  right; 
316.28     (2) district policies for student conduct and school bus 
316.29  safety; 
316.30     (3) appropriate conduct while on the school bus; 
316.31     (4) the danger zones surrounding a school bus; 
316.32     (5) procedures for safely boarding and leaving a school 
316.33  bus; 
316.34     (6) procedures for safe street or road crossing; and 
316.35     (7) school bus evacuation and other emergency procedures. 
316.36     (b) Each nonpublic school located within the district must 
317.1   provide all nonpublic school pupils enrolled in grades 
317.2   kindergarten through 10 who are transported by school bus at 
317.3   public expense and attend school within the district's 
317.4   boundaries with training as required in paragraph (a).  The 
317.5   school district shall make a bus available for the practical 
317.6   training if the district transports the nonpublic students.  
317.7   Each nonpublic school shall provide the instruction. 
317.8      (c) All students enrolled in grades kindergarten through 3 
317.9   who are transported by school bus and are enrolled during the 
317.10  first or second week of school must demonstrate achievement of 
317.11  the school bus safety training competencies by the end of the 
317.12  third week of school.  All students enrolled in grades 4 through 
317.13  10 who are transported by school bus and are enrolled during the 
317.14  first or second week of school must demonstrate achievement of 
317.15  the competencies by the end of the sixth week of school.  
317.16  Students enrolled in grades kindergarten through 10 who enroll 
317.17  in a school after the second week of school and are transported 
317.18  by school bus shall undergo school bus safety training and 
317.19  demonstrate achievement of the school bus safety competencies 
317.20  within four weeks of the first day of attendance.  The pupil 
317.21  transportation safety director in each district must certify to 
317.22  the commissioner annually that all students transported by 
317.23  school bus within the district have satisfactorily demonstrated 
317.24  knowledge and understanding of the school bus safety 
317.25  competencies according to this section or provide an explanation 
317.26  for a student's failure to demonstrate the competencies.  The 
317.27  principal or other chief administrator of each nonpublic school 
317.28  must certify annually to the public transportation safety 
317.29  director of the district in which the school is located that all 
317.30  of the school's students transported by school bus at public 
317.31  expense have received training.  A district may deny 
317.32  transportation to a student who fails to demonstrate the 
317.33  competencies, unless the student is unable to achieve the 
317.34  competencies due to a disability, or to a student who attends a 
317.35  nonpublic school that fails to provide training as required by 
317.36  this subdivision. 
318.1      (d) A district and a nonpublic school with students 
318.2   transported by school bus at public expense must, to the extent 
318.3   possible, provide kindergarten pupils with bus safety training 
318.4   before the first day of school. 
318.5      (e) A district and a nonpublic school with students 
318.6   transported by school bus at public expense must also provide 
318.7   student safety education for bicycling and pedestrian safety, 
318.8   for students enrolled in grades kindergarten through 5. 
318.9      (f) (d) A district and a nonpublic school with students 
318.10  transported by school bus at public expense must make reasonable 
318.11  accommodations for the school bus, bicycle, and pedestrian 
318.12  safety training of pupils known to speak English as a second 
318.13  language and pupils with disabilities. 
318.14     Sec. 19.  Minnesota Statutes 1998, section 123B.91, 
318.15  subdivision 1, is amended to read: 
318.16     Subdivision 1.  [COMPREHENSIVE POLICY.] Each district must 
318.17  develop and implement a comprehensive, written policy governing 
318.18  pupil transportation safety, including transportation of 
318.19  nonpublic school students, when applicable.  The policy shall, 
318.20  at minimum, contain: 
318.21     (1) provisions for appropriate student bus safety training 
318.22  under section 123B.90; 
318.23     (2) rules governing student conduct on school buses and in 
318.24  school bus loading and unloading areas; 
318.25     (3) a statement of parent or guardian responsibilities 
318.26  relating to school bus safety; 
318.27     (4) provisions for notifying students and parents or 
318.28  guardians of their responsibilities and the rules; 
318.29     (5) an intradistrict system for reporting school bus 
318.30  accidents or misconduct and a system for dealing with local law 
318.31  enforcement officials in cases of criminal conduct on a school 
318.32  bus; 
318.33     (6) a discipline policy to address violations of school bus 
318.34  safety rules, including procedures for revoking a student's bus 
318.35  riding privileges in cases of serious or repeated misconduct; 
318.36     (7) a system for integrating school bus misconduct records 
319.1   with other discipline records; 
319.2      (8) a statement of bus driver duties; 
319.3      (9) planned expenditures for safety activities under 
319.4   section 123B.89 and, where applicable, provisions governing bus 
319.5   monitor qualifications, training, and duties; 
319.6      (10) rules governing the use and maintenance of type III 
319.7   vehicles, drivers of type III vehicles, qualifications to drive 
319.8   a type III vehicle, qualifications for a type III vehicle and 
319.9   the circumstances under which a student may be transported in a 
319.10  type III vehicle; 
319.11     (11) operating rules and procedures; 
319.12     (12) provisions for annual bus driver in-service training 
319.13  and evaluation; 
319.14     (13) emergency procedures; 
319.15     (14) a system for maintaining and inspecting equipment; 
319.16     (15) requirements of the school district, if any, that 
319.17  exceed state law minimum requirements for school bus operations; 
319.18  and 
319.19     (16) requirements for basic first aid training, which must 
319.20  include the Heimlich maneuver and procedures for dealing with 
319.21  obstructed airways, shock, bleeding, and seizures. 
319.22     Districts are encouraged to use the model policy developed 
319.23  by the Minnesota school boards association, the department of 
319.24  public safety, and the department of children, families, and 
319.25  learning, as well as the current edition of the "National 
319.26  Standards for School Buses and Operations" published by the 
319.27  National Safety Council, in developing safety policies.  Each 
319.28  district shall review its policy annually and make appropriate 
319.29  amendments, which must be submitted to the school bus safety 
319.30  advisory committee within one month of approval by the school 
319.31  board. 
319.32     Sec. 20.  Minnesota Statutes 1998, section 123B.92, 
319.33  subdivision 2, is amended to read: 
319.34     Subd. 2.  [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 
319.35  district must may reserve an amount equal to the greater of $500 
319.36  or $1.50 times the number of adjusted pupil units, for that 
320.1   school year to provide student transportation safety programs 
320.2   under section 123B.89.  This revenue may only be used if the 
320.3   district complies with the reporting requirements of section 
320.4   123B.90, 123B.91, 169.4582, or 171.321, subdivision 5. 
320.5      Sec. 21.  Minnesota Statutes 1998, section 123B.92, 
320.6   subdivision 4, is amended to read: 
320.7      Subd. 4.  [TRANSPORTATION SAFETY AID.] A district's 
320.8   transportation safety aid equals the district's reserved revenue 
320.9   for transportation safety under subdivision 2 for that school 
320.10  year.  Failure of a district to comply with the reporting 
320.11  requirements of section 123B.90, 123B.91, 169.4582, or 171.321, 
320.12  subdivision 5, may result in a withholding of that district's 
320.13  transportation safety aid for that school year. 
320.14     Sec. 22.  [REPEALER.] 
320.15     Minnesota Statutes 1998, sections 123B.02, subdivisions 5, 
320.16  6, 9, 10, 11, 13, and 16; 123B.04, subdivision 4; 123B.11; 
320.17  123B.147, subdivisions 1 and 3; 123B.15; 123B.16; 123B.17; 
320.18  123B.18; 123B.19; 123B.40; 123B.49, subdivisions 2 and 3; 
320.19  123B.51, subdivisions 2, 3, and 4; 123B.744; 123B.84; 123B.87; 
320.20  123B.88, subdivisions 11, 12, 13, 18, 20, 21, and 22; 123B.93; 
320.21  and 123B.95, subdivision 3, are repealed. 
320.22                             ARTICLE 16
320.23                         EDUCATION PROGRAMS 
320.24     Section 1.  Minnesota Statutes 1998, section 124D.02, 
320.25  subdivision 1, is amended to read: 
320.26     Subdivision 1.  [KINDERGARTEN INSTRUCTION.] The board may 
320.27  establish and maintain one or more kindergartens for the 
320.28  instruction of children and after July 1, 1974, shall provide 
320.29  must make kindergarten instruction available for all eligible 
320.30  children, either in the district or in another district.  All 
320.31  children to be eligible Eligibility for kindergarten must be at 
320.32  least five years of age on September 1 of the calendar year in 
320.33  which the school year commences.  In addition all children 
320.34  selected under an early admissions policy established by the 
320.35  school board may be admitted.  Nothing in this section shall 
320.36  prohibit a school district from establishing head start, 
321.1   prekindergarten, or nursery school classes for children below 
321.2   kindergarten age determined according to section 120A.20, 
321.3   subdivision 1.  Any school board with evidence that providing 
321.4   kindergarten will cause an extraordinary hardship on the school 
321.5   district may apply to the commissioner of children, families, 
321.6   and learning for an exception. 
321.7      Sec. 2.  Minnesota Statutes 1998, section 124D.03, 
321.8   subdivision 3, is amended to read: 
321.9      Subd. 3.  [PUPIL APPLICATION PROCEDURES.] In order that a 
321.10  pupil may attend a school or program in a nonresident district, 
321.11  the pupil's parent or guardian must submit an application to the 
321.12  nonresident district.  Before submitting an application, the 
321.13  pupil and the pupil's parent or guardian must explore with a 
321.14  school guidance counselor, or other appropriate staff member 
321.15  employed by the district the pupil is currently attending, the 
321.16  pupil's academic or other reason for applying to enroll in a 
321.17  nonresident district.  The pupil's application must identify the 
321.18  reason for enrolling in the nonresident district.  The parent or 
321.19  guardian of a pupil must submit an application by January 
321.20  15 June 1 for initial enrollment beginning the following school 
321.21  year.  The application must be on a form provided by the 
321.22  department of children, families, and learning.  A particular 
321.23  school or program may be requested by the parent.  Once enrolled 
321.24  in a nonresident district, the pupil may remain enrolled and is 
321.25  not required to submit annual or periodic applications.  To 
321.26  return to the resident district or to transfer to a different 
321.27  nonresident district, the parent or guardian of the pupil must 
321.28  provide notice to the resident district or apply to a different 
321.29  nonresident district by January 15 June 1 for enrollment 
321.30  beginning the following school year.  Each district must accept 
321.31  or reject an application it receives and notify the parent or 
321.32  guardian in writing within 30 calendar days of receiving the 
321.33  application.  A notification of acceptance must include the date 
321.34  enrollment can begin.  Within ten days of receiving the 
321.35  notification from the nonresident district, the parent or 
321.36  guardian must inform the nonresident district whether the pupil 
322.1   intends to enroll in the nonresident district. 
322.2      Sec. 3.  Minnesota Statutes 1998, section 124D.09, 
322.3   subdivision 5, is amended to read: 
322.4      Subd. 5.  [AUTHORIZATION; NOTIFICATION.] Notwithstanding 
322.5   any other law to the contrary, An 11th or 12th grade pupil 
322.6   enrolled in a school or an American Indian-controlled tribal 
322.7   contract or grant school eligible for aid under section 124D.83, 
322.8   except a foreign exchange pupil enrolled in a district under a 
322.9   cultural exchange program, may apply to an eligible institution, 
322.10  as defined in subdivision 3, to enroll in nonsectarian courses 
322.11  offered by that post-secondary institution.  If an institution 
322.12  accepts a secondary pupil for enrollment under this section, the 
322.13  institution shall send written notice to the pupil, the pupil's 
322.14  school or school district, and the commissioner within ten days 
322.15  of acceptance.  The notice must indicate the course and hours of 
322.16  enrollment of that pupil.  If the pupil enrolls in a course for 
322.17  post-secondary credit, the institution must notify the pupil 
322.18  about payment in the customary manner used by the institution. 
322.19     Sec. 4.  Minnesota Statutes 1998, section 124D.09, 
322.20  subdivision 6, is amended to read: 
322.21     Subd. 6.  [COUNSELING PARENTAL CONSENT.] To the extent 
322.22  possible, the school or school district must provide counseling 
322.23  services to pupils and their parents or guardian before the 
322.24  pupils enroll in courses under this section to ensure that the 
322.25  pupils and their parents or guardian are fully aware of the 
322.26  risks and possible consequences of enrolling in post-secondary 
322.27  courses.  The school or school district must provide information 
322.28  on the program including who may enroll, what institutions and 
322.29  courses are eligible for participation, the decision-making 
322.30  process for granting academic credits, financial arrangements 
322.31  for tuition, books and materials, eligibility criteria for 
322.32  transportation aid, available support services, the need to 
322.33  arrange an appropriate schedule, consequences of failing or not 
322.34  completing a course in which the pupil enrolls, the effect of 
322.35  enrolling in this program on the pupil's ability to complete the 
322.36  required high school graduation requirements, and the academic 
323.1   and social responsibilities that must be assumed by the pupils 
323.2   and their parents or guardian.  The person providing counseling 
323.3   shall encourage pupils and their parents or guardian to also use 
323.4   available counseling services at the post-secondary institutions 
323.5   before the quarter or semester of enrollment to ensure that 
323.6   anticipated plans are appropriate.  
323.7      Prior to enrolling in a course, the pupil and the pupil's 
323.8   parents or guardian must sign a form that must be provided by 
323.9   the school or school district and may be obtained from a 
323.10  post-secondary institution stating that they have received the 
323.11  information specified in this subdivision and that they 
323.12  understand the responsibilities that must be assumed in 
323.13  enrolling in this program.  The department must, upon request, 
323.14  provide technical assistance to a school or school district in 
323.15  developing appropriate forms and counseling guidelines. 
323.16     Sec. 5.  Minnesota Statutes 1998, section 124D.09, 
323.17  subdivision 7, is amended to read: 
323.18     Subd. 7.  [DISSEMINATION OF INFORMATION; NOTIFICATION OF 
323.19  INTENT TO ENROLL.] By March 1 of each year, A district must 
323.20  adopt policies for deadlines and provide general information 
323.21  about the program to all pupils in grades 10 and 11.  To assist 
323.22  the district in planning, a pupil shall inform the district by 
323.23  March 30 of each year of the pupil's intent to enroll in 
323.24  post-secondary courses during the following school year.  A 
323.25  pupil is not bound by notifying or not notifying the district by 
323.26  March 30.  
323.27     Sec. 6.  Minnesota Statutes 1998, section 124D.09, 
323.28  subdivision 12, is amended to read: 
323.29     Subd. 12.  [CREDITS.] A pupil may enroll in a course under 
323.30  this section for either secondary credit or post-secondary 
323.31  credit.  At the time a pupil enrolls in a course, the pupil 
323.32  shall designate whether the course is for secondary or 
323.33  post-secondary credit.  A pupil taking several courses may 
323.34  designate some for secondary credit and some for post-secondary 
323.35  credit.  A pupil must not audit a course under this section. 
323.36     A district shall grant academic credit to a pupil enrolled 
324.1   in a course for secondary credit if the pupil successfully 
324.2   completes the course.  Seven quarter or four semester college 
324.3   credits equal at least one full year of high school credit.  
324.4   Fewer college credits may be prorated.  A district must also 
324.5   grant academic credit to a pupil enrolled in a course for 
324.6   post-secondary credit if secondary credit is requested by a 
324.7   pupil.  If no comparable course is offered by the district, the 
324.8   district must, as soon as possible, notify the commissioner, who 
324.9   shall determine the number of credits that shall be granted to a 
324.10  pupil who successfully completes a course.  If a comparable 
324.11  course is offered by the district, the school board shall grant 
324.12  a comparable number of credits to the pupil.  If there is a 
324.13  dispute between the district and the pupil regarding the number 
324.14  of credits granted for a particular course, the pupil may appeal 
324.15  the board's decision to the commissioner.  The commissioner's 
324.16  decision regarding the number of credits shall be final.  
324.17     The secondary credits granted to a pupil must be counted 
324.18  toward the graduation requirements and subject area requirements 
324.19  of the district.  Evidence of successful completion of each 
324.20  course and secondary credits granted must be included in the 
324.21  pupil's secondary school record.  A pupil shall provide the 
324.22  school with a copy of the pupil's grade in each course taken for 
324.23  secondary credit under this section.  Upon the request of a 
324.24  pupil, the pupil's secondary school record must also include 
324.25  evidence of successful completion and credits granted for a 
324.26  course taken for post-secondary credit.  In either case, the 
324.27  record must indicate that the credits were earned at a 
324.28  post-secondary institution. 
324.29     If a pupil enrolls in a post-secondary institution after 
324.30  leaving secondary school, the post-secondary institution must 
324.31  award post-secondary credit for any course successfully 
324.32  completed for secondary credit at that institution.  Other 
324.33  post-secondary institutions may award, after a pupil leaves 
324.34  secondary school, post-secondary credit for any courses 
324.35  successfully completed under this section.  An institution may 
324.36  not charge a pupil for the award of credit. 
325.1      Sec. 7.  Minnesota Statutes 1998, section 124D.10, 
325.2   subdivision 1, is amended to read: 
325.3      Subdivision 1.  [PURPOSES EXPECTED OUTCOMES.] (a) 
325.4   The purpose of this section is expected outcomes of a charter 
325.5   school are to: 
325.6      (1) improve pupil learning; 
325.7      (2) increase learning opportunities for pupils; 
325.8      (3) encourage the use of different and innovative teaching 
325.9   methods; 
325.10     (4) require the measurement of learning outcomes and create 
325.11  different and innovative forms of measuring outcomes; 
325.12     (5) establish new forms of accountability for schools; or 
325.13     (6) create new professional opportunities for teachers, 
325.14  including the opportunity to be responsible for the learning 
325.15  program at the school site. 
325.16     (b) This section does not provide a means to keep open a 
325.17  school that otherwise would be closed.  Applicants in these 
325.18  circumstances bear the burden of proving that conversion to a 
325.19  charter school fulfills a purpose specified in this subdivision, 
325.20  independent of the school's closing. 
325.21     Sec. 8.  Minnesota Statutes 1998, section 124D.10, 
325.22  subdivision 6, is amended to read: 
325.23     Subd. 6.  [CONTRACT.] The sponsor's authorization for a 
325.24  charter school must be in the form of a written contract signed 
325.25  by the sponsor and the board of directors of the charter 
325.26  school.  The contract for a charter school must be in writing 
325.27  and contain at least the following: 
325.28     (1) a description of a program that carries out one or more 
325.29  of the purposes expected outcomes in subdivision 1; 
325.30     (2) specific outcomes pupils are to achieve under 
325.31  subdivision 10; 
325.32     (3) admission policies and procedures; 
325.33     (4) management and administration of the school; 
325.34     (5) requirements and procedures for program and financial 
325.35  audits; 
325.36     (6) how the school will comply with subdivisions 8, 13, 16, 
326.1   and 23; 
326.2      (7) assumption of liability by the charter school; 
326.3      (8) types and amounts of insurance coverage to be obtained 
326.4   by the charter school; 
326.5      (9) the term of the contract, which may be up to three 
326.6   years; and 
326.7      (10) if the board of directors or the operators of the 
326.8   charter school provide special instruction and services for 
326.9   children with a disability under sections 125A.03 to 125A.24, 
326.10  and 125A.65, a description of the financial parameters within 
326.11  which the charter school will operate to provide the special 
326.12  instruction and services to children with a disability. 
326.13     Sec. 9.  Minnesota Statutes 1998, section 124D.10, 
326.14  subdivision 15, is amended to read: 
326.15     Subd. 15.  [REVIEW AND COMMENT.] The department must review 
326.16  and comment on the evaluation, by the chartering school 
326.17  district, of the performance of a charter school before the 
326.18  charter school's contract is renewed.  The information from the 
326.19  review and comment shall be reported to the state board of 
326.20  education in a timely manner.  Periodically, the state board 
326.21  shall report trends or suggestions based on the evaluation of 
326.22  charter school contracts to the education committees of the 
326.23  state legislature.  
326.24     Sec. 10.  Minnesota Statutes 1998, section 124D.10, 
326.25  subdivision 19, is amended to read: 
326.26     Subd. 19.  [DISSEMINATE AVAILABLE INFORMATION.] The 
326.27  sponsor, the operators, and the department of children, 
326.28  families, and learning must disseminate make information 
326.29  available to the public on how to form and operate a charter 
326.30  school and how to utilize the offerings of a charter school.  
326.31  Particular groups to be targeted include low-income families and 
326.32  communities, and students of color. 
326.33     Sec. 11.  Minnesota Statutes 1998, section 124D.115, 
326.34  subdivision 3, is amended to read: 
326.35     Subd. 3.  [PROGRAM REIMBURSEMENT.] (a) State funds are 
326.36  provided to reimburse school breakfasts.  Each school year, the 
327.1   state must reimburse schools in the amount of 5.1 cents for each 
327.2   fully paid breakfast and for each free and reduced price 
327.3   breakfast not eligible for the "severe need" rate. 
327.4      (b) In addition to paragraph (a), each school year the 
327.5   state must reimburse schools 10.5 cents for each free and 
327.6   reduced price breakfast not eligible for the "severe need" rate 
327.7   if between 33 and 40 percent of the school lunches served during 
327.8   the second preceding school year were served free or at a 
327.9   reduced price. 
327.10     Sec. 12.  Minnesota Statutes 1998, section 124D.118, 
327.11  subdivision 2, is amended to read: 
327.12     Subd. 2.  [ESTABLISHMENT; SCHOOL PARTICIPATION.] Each 
327.13  district in the state is encouraged to participate in the 
327.14  state-supported school milk program for kindergartners.  
327.15  Participating districts must provide one serving of milk on each 
327.16  school day to each kindergarten student attending a public or 
327.17  nonpublic school in the district.  No student is required to 
327.18  accept the milk that is provided by the district.  The program 
327.19  must be promoted and operated under the direction of the 
327.20  commissioner or the commissioner's designee. 
327.21     Sec. 13.  Minnesota Statutes 1998, section 124D.118, 
327.22  subdivision 3, is amended to read: 
327.23     Subd. 3.  [PROGRAM GUIDELINES; DUTIES OF THE COMMISSIONER.] 
327.24  (a) The commissioner shall: 
327.25     (1) encourage all districts to participate in the school 
327.26  milk program for kindergartners; 
327.27     (2) prepare maintain program guidelines, not subject to 
327.28  chapter 14 until July 1, 1998, which will effectively and 
327.29  efficiently distribute appropriated and donated money to 
327.30  participating districts; and 
327.31     (3) (2) seek donations and matching funds from appropriate 
327.32  private and public sources. 
327.33     (b) Program guidelines may provide for disbursement to 
327.34  districts through a mechanism of prepayments or by reimbursement 
327.35  for approved program expenses. 
327.36     Sec. 14.  Minnesota Statutes 1998, section 124D.28, 
328.1   subdivision 1, is amended to read: 
328.2      Subdivision 1.  [MANDATORY COMPONENTS EXPECTATIONS.] The 
328.3   expected outcomes of a family connections program must include:  
328.4      (1) participation by a designated designation of an 
328.5   individual as a career teacher, principal-teacher, or counselor 
328.6   teacher; 
328.7      (2) an increased emphasis on each individual child's unique 
328.8   learning and development needs beginning with early childhood 
328.9   family education; 
328.10     (3) procedures to give the career teacher a major 
328.11  responsibility for leadership of the instructional and 
328.12  noninstructional activities of each child beginning with early 
328.13  childhood family education; 
328.14     (4) procedures to involve increased involvement of parents 
328.15  in the learning and development experiences of their 
328.16  children; and 
328.17     (5) procedures to implement outcome based education by 
328.18  focusing on the needs of the learner; 
328.19     (6) procedures to coordinate and integrate (4) increased 
328.20  involvement of the instructional program with all community 
328.21  education programs; 
328.22     (7) procedures to concentrate career teacher programs at 
328.23  sites that provide early childhood family education and 
328.24  subsequent learning and development programs; and 
328.25     (8) procedures for the district to fund the program.  
328.26     Sec. 15.  Minnesota Statutes 1998, section 124D.29, is 
328.27  amended by adding a subdivision to read: 
328.28     Subd. 6.  [DISTRICT COMPONENTS.] The school board and the 
328.29  exclusive bargaining representative of the teachers that has a 
328.30  family connections program shall negotiate: 
328.31     (1) staff to student ratios; 
328.32     (2) procedures for teachers, principals, and counselors to 
328.33  apply for and renew the position of career teacher, 
328.34  principal-teacher, or counselor teacher; and 
328.35     (3) the duties of the career teacher, principal-teacher, or 
328.36  counselor teacher. 
329.1      Sec. 16.  Minnesota Statutes 1998, section 124D.30, 
329.2   subdivision 3, is amended to read: 
329.3      Subd. 3.  [COMMISSIONER APPROVAL.] The commissioner may 
329.4   shall approve plans and applications for districts throughout 
329.5   the state for family connections aid.  The commissioner shall 
329.6   establish application procedures and deadlines. 
329.7      Sec. 17.  Minnesota Statutes 1998, section 124D.34, 
329.8   subdivision 4, is amended to read: 
329.9      Subd. 4.  [FOUNDATION PROGRAMS AND DUTIES.] The foundation 
329.10  shall advance applied leadership and intracurricular vocational 
329.11  learning experiences for students.  These may include, but are 
329.12  not limited to: 
329.13     (1) recognition programs and awards for students 
329.14  demonstrating excellence in applied leadership; 
329.15     (2) summer programs for student leadership, career 
329.16  development, applied academics, and mentorship programs with 
329.17  business and industry; 
329.18     (3) recognition programs for teachers, administrators, and 
329.19  others who make outstanding contributions to school-to-work 
329.20  programs; 
329.21     (4) outreach programs to increase the involvement of urban 
329.22  and suburban students; 
329.23     (5) organized challenges requiring cooperation and 
329.24  competition for secondary and post-secondary students; 
329.25     (6) assistance and training to community teams to increase 
329.26  career awareness and empowerment of youth as community leaders; 
329.27  and 
329.28     (7) assessment and activities in order to plan for and 
329.29  implement continuous improvement.  
329.30     To the extent possible, the foundation shall make these 
329.31  programs available to students in all parts of the state.  The 
329.32  foundation may receive public and private money, grants, and 
329.33  in-kind services and goods from nonstate sources without 
329.34  complying with section 7.09, subdivision 1. 
329.35     Sec. 18.  Minnesota Statutes 1998, section 124D.35, is 
329.36  amended to read: 
330.1      124D.35 [YOUTH ENTREPRENEURSHIP EDUCATION PROGRAM.] 
330.2      The commissioner shall establish A youth entrepreneurship 
330.3   education program to improve the academic and entrepreneurial 
330.4   skills of students and aid in their transition from school to 
330.5   business creation.  The program shall strengthen local economies 
330.6   by creating jobs that enable citizens to remain in their 
330.7   communities and to foster cooperation among educators, economic 
330.8   development professionals, business leaders, and representatives 
330.9   of labor.  Assistance under this section shall be available to 
330.10  new or existing student-operated or school-operated businesses 
330.11  that have an educational purpose, and provide service or 
330.12  products for customers or clients who do not attend or work at 
330.13  the sponsoring school.  The commissioner may require an equal 
330.14  local match for assistance under this section up to the maximum 
330.15  grant amount of $20,000. 
330.16     Sec. 19.  Minnesota Statutes 1998, section 124D.37, is 
330.17  amended to read: 
330.18     124D.37 [PURPOSE EXPECTED OUTCOMES OF THE MINNESOTA YOUTH 
330.19  WORKS ACT.] 
330.20     The purposes expected outcomes of sections 124D.37 to 
330.21  124D.45 are to: 
330.22     (1) renew the ethic of promote civic responsibility in 
330.23  Minnesota; 
330.24     (2) empower youth to improve their life opportunities 
330.25  through youth literacy, job placement, and other essential life 
330.26  skills; 
330.27     (3) empower government improve government's to meet its 
330.28  responsibility to prepare young people to be contributing 
330.29  members of society; 
330.30     (4) help meet human civic, educational, environmental, and 
330.31  public safety needs, particularly those needs relating to 
330.32  poverty; 
330.33     (5) prepare a citizenry that is academically competent, 
330.34  ready for work, and socially responsible; 
330.35     (6) demonstrate the connection between youth and meaningful 
330.36  community service, community service and education, and 
331.1   education and meaningful opportunities in the business 
331.2   community; 
331.3      (7) demonstrate the connection between providing 
331.4   opportunities for at-risk youth and reducing crime rates and the 
331.5   social costs of troubled youth activities; 
331.6      (8) (6) create linkages for a comprehensive youth service 
331.7   and learning program in Minnesota including school age programs, 
331.8   higher education programs, youth work programs, and service 
331.9   corps programs; and 
331.10     (9) (7) coordinate federal and state activities that 
331.11  advance the purposes in this section. 
331.12     Sec. 20.  Minnesota Statutes 1998, section 124D.40, 
331.13  subdivision 2, is amended to read: 
331.14     Subd. 2.  [GRANT AUTHORITY.] The commission and, beginning 
331.15  January 1, 1997, the council must use any state appropriation 
331.16  and any available federal funds, including any grant received 
331.17  under federal law, to award grants to establish programs for 
331.18  youth works meeting the requirements of section 124D.41.  At 
331.19  least one grant each must be available for a metropolitan 
331.20  proposal, a rural proposal, and a statewide proposal.  If a 
331.21  portion of the suburban metropolitan area is not included in the 
331.22  metropolitan grant proposal, the statewide grant proposal must 
331.23  incorporate at least one suburban metropolitan area.  In 
331.24  awarding grants, the commission and, beginning January 1, 1997, 
331.25  the council may select at least one residential proposal and one 
331.26  nonresidential proposal, provided the proposals meet or exceed 
331.27  the criteria in section 124D.41. 
331.28     Sec. 21.  Minnesota Statutes 1998, section 124D.41, is 
331.29  amended to read: 
331.30     124D.41 [GRANT APPLICATIONS.] 
331.31     Subdivision 1.  [APPLICATIONS REQUIRED.] An organization 
331.32  seeking federal or state grant money under sections 124D.39 to 
331.33  124D.44 shall prepare and submit to the commission and, 
331.34  beginning January 1, 1997, the council an application that meets 
331.35  the requirements of this section developed by the commission.  
331.36  The commission and, beginning January 1, 1997, the council must 
332.1   develop, and the applying organizations must comply with, the 
332.2   form and manner of the application requirements that meet the 
332.3   expected outcomes in section 124D.37. 
332.4      Subd. 2.  [APPLICATION CONTENT.] An applicant on its 
332.5   application must: describe how it intends to meet the expected 
332.6   outcomes in section 124D.37. 
332.7      (1) propose a program to provide participants the 
332.8   opportunity to perform community service to meet specific unmet 
332.9   community needs, and participate in classroom, work-based, and 
332.10  service-learning; 
332.11     (2) assess the community's unmet educational, human, 
332.12  environmental, and public safety needs, the resources and 
332.13  programs available for meeting those needs, and how young people 
332.14  participated in assessing community needs; 
332.15     (3) describe the educational component of the program, 
332.16  including classroom hours per week, classroom time for 
332.17  participants to reflect on the program experience, and 
332.18  anticipated academic outcomes related to the service experience; 
332.19     (4) describe the work to be performed, the ratio of youth 
332.20  participants to crew leaders and mentors, and the expectations 
332.21  and qualifications for crew leaders and mentors; 
332.22     (5) describe local funds or resources available to meet the 
332.23  match requirements of section 124D.44; 
332.24     (6) describe any funds available for the program from 
332.25  sources other than the requested grant; 
332.26     (7) describe any agreements with local businesses to 
332.27  provide participants with work-learning opportunities and 
332.28  mentors; 
332.29     (8) describe any agreement with local post-secondary 
332.30  educational institutions to offer participants course credits 
332.31  for their community service-learning experience; 
332.32     (9) describe any agreement with a local high school or an 
332.33  alternative learning center to provide remedial education, 
332.34  credit for community service work and work-based learning, or 
332.35  graduate equivalency degrees; 
332.36     (10) describe any pay for service or other program delivery 
333.1   mechanism that will provide reimbursement for benefits conferred 
333.2   or recover costs of services participants perform; 
333.3      (11) describe how local resources will be used to provide 
333.4   support and assistance for participants to encourage them to 
333.5   continue with the program, fulfill the terms of the contract, 
333.6   and remain eligible for any postservice benefit; 
333.7      (12) describe the arbitration mechanism for dispute 
333.8   resolution required under section 124D.42, subdivision 2; 
333.9      (13) describe involvement of community leaders in 
333.10  developing broad-based support for the program; 
333.11     (14) describe the consultation and sign-off process to be 
333.12  used with any local labor organization representing employees in 
333.13  the area engaged in work similar to that proposed for the 
333.14  program to ensure that no current employees or available 
333.15  employment positions will be displaced by program participants; 
333.16     (15) certify to the commission and, beginning January 1, 
333.17  1997, the council, and to any certified bargaining 
333.18  representatives representing employees of the applying 
333.19  organization that the project will not decrease employment 
333.20  opportunities that would be available without the project; will 
333.21  not displace current employees including any partial 
333.22  displacement in the form of reduced hours of work other than 
333.23  overtime, wages, employment benefits, or regular seasonal work; 
333.24  will not impair existing labor agreements; and will not result 
333.25  in the substitution of project funding for preexisting funds or 
333.26  sources of funds for ongoing work; 
333.27     (16) describe the length of the required service period, 
333.28  which may not be less than six months or more than two years, a 
333.29  method to incorporate a participant's readiness to advance or 
333.30  need for postservice financial assistance into individual 
333.31  service requirements, and any opportunity for participating part 
333.32  time or in another program; 
333.33     (17) describe a program evaluation plan that contains 
333.34  cost-effectiveness measures, measures of participant success 
333.35  including educational accomplishments, job placements, community 
333.36  contributions, and ongoing volunteer activities, outcome 
334.1   measures based on a preprogram and postprogram survey of 
334.2   community rates of arrest, incarceration, teenage pregnancy, and 
334.3   other indicators of youth in trouble, and a list of local 
334.4   resources dedicated to reducing these rates; 
334.5      (18) describe a three-year financial plan for maintaining 
334.6   the program; 
334.7      (19) describe the role of local youth in developing all 
334.8   aspects of the grant proposal; and 
334.9      (20) describe the process by which the local private 
334.10  industry council participated in, and reviewed the grant 
334.11  application. 
334.12     Sec. 22.  Minnesota Statutes 1998, section 124D.42, 
334.13  subdivision 7, is amended to read: 
334.14     Subd. 7.  [TRAINING AND EDUCATION REQUIREMENTS.] Each 
334.15  grantee organization must assess and work to enhance the 
334.16  educational level of each entering participant.  Each grantee 
334.17  shall work to enhance the educational skills of each 
334.18  participant.  The commission and, beginning January 1, 1997, the 
334.19  council may coordinate or contract with educational institutions 
334.20  or other providers for educational services and evaluation.  All 
334.21  grantees shall give priority to educating and training 
334.22  participants who do not have a high school diploma or its 
334.23  equivalent, or who cannot afford post-secondary training and 
334.24  education. 
334.25     Sec. 23.  Minnesota Statutes 1998, section 124D.46, 
334.26  subdivision 1, is amended to read: 
334.27     Subdivision 1.  [GOALS ESTABLISHMENT.] To better prepare 
334.28  all learners to make transitions between education and 
334.29  employment, A comprehensive education and employment transitions 
334.30  system is established that is driven by multisector partnerships 
334.31  and takes a lifelong approach to workforce development.  
334.32  The goals of the statewide education and employment transitions 
334.33  system are shall develop and implement methods: 
334.34     (1) to improve the skills learners need to achieve greater 
334.35  levels of self-sufficiency through education, training, and 
334.36  work; 
335.1      (2) to improve work-related counseling and information 
335.2   about career opportunities and vocational education programs 
335.3   available to learners to facilitate workforce development; 
335.4      (3) to integrate opportunities for work-based learning, 
335.5   service-learning, and other applied learning methods into the 
335.6   elementary, secondary, and post-secondary curriculum and state 
335.7   and local graduation standards; 
335.8      (4) to increase participation in employment opportunities 
335.9   and demonstrate the relationship between education and 
335.10  employment at the elementary, secondary, and post-secondary 
335.11  education levels; 
335.12     (5) (4) to promote the efficient use of public and private 
335.13  resources by coordinating elementary, secondary, and 
335.14  post-secondary education with related government programs; 
335.15     (6) (5) to expand educational options available to all 
335.16  learners through collaborative efforts between school districts, 
335.17  post-secondary institutions, employers, organized labor, 
335.18  workers, learners, parents, community-based organizations, and 
335.19  other interested parties; 
335.20     (7) (6) to increase opportunities for women, minorities, 
335.21  individuals with a disability, and at-risk learners to fully 
335.22  participate in work-based learning; 
335.23     (8) to establish performance standards for learners that 
335.24  integrate state and local graduation standards and generally 
335.25  recognized industry and occupational skill standards; and 
335.26     (9) (7) to provide support systems including a unified 
335.27  labor market information system; a centralized quality assurance 
335.28  system with information on learner achievement, employer 
335.29  satisfaction, and measurable system outcomes; a statewide 
335.30  marketing system to promote the importance of lifework 
335.31  development; a comprehensive professional development system for 
335.32  public and private sector partners; and a comprehensive system 
335.33  for providing technical support to local partnerships for 
335.34  education and employment transitions. 
335.35     Sec. 24.  Minnesota Statutes 1998, section 124D.47, 
335.36  subdivision 2, is amended to read: 
336.1      Subd. 2.  [YOUTH APPRENTICESHIP PROGRAMS.] (a) A 
336.2   comprehensive youth apprenticeship program must require 
336.3   representatives of secondary and post-secondary school systems, 
336.4   affected local businesses, industries, occupations and labor, as 
336.5   well as the local community, to be actively and collaboratively 
336.6   involved in advising and managing the program and ensuring, in 
336.7   consultation with local private industry councils, that the 
336.8   youth apprenticeship program meets local labor market demands, 
336.9   provides student apprentices with the high skill training 
336.10  necessary for career advancement, meets applicable state 
336.11  graduation requirements and labor standards, pays apprentices 
336.12  for their work and provides support services to program 
336.13  participants. 
336.14     (b) Local employers, collaborating with labor organizations 
336.15  where appropriate, must assist the program by analyzing 
336.16  workplace needs, creating work-related curriculum, employing and 
336.17  adequately paying youth apprentices engaged in work-related 
336.18  learning in the workplace, training youth apprentices to become 
336.19  skilled in an occupation, providing student apprentices with a 
336.20  workplace mentor, periodically informing the school of an 
336.21  apprentice's progress, and making a reasonable effort to employ 
336.22  youth apprentices who successfully complete the program. 
336.23     (c) A student participating in a comprehensive youth 
336.24  apprenticeship program must sign a youth apprenticeship 
336.25  agreement with participating entities that obligates youth 
336.26  apprentices, their parents or guardians, employers, and schools 
336.27  to meet program requirements; indicates how academic 
336.28  instruction, work-based learning, and worksite learning and 
336.29  experience will be integrated; ensures that successful youth 
336.30  apprentices will receive a recognized credential of academic and 
336.31  occupational proficiency; and establishes the wage rate and 
336.32  other benefits for which youth apprentices are eligible while 
336.33  employed during the program. 
336.34     (d) Secondary school principals, counselors, or business 
336.35  mentors familiar with the education to employment transitions 
336.36  system must inform entering secondary school students about 
337.1   available occupational and career opportunities and the option 
337.2   of entering a youth apprenticeship or other work-based learning 
337.3   program to obtain post-secondary academic and occupational 
337.4   credentials. 
337.5      Sec. 25.  Minnesota Statutes 1998, section 124D.49, 
337.6   subdivision 3, is amended to read: 
337.7      Subd. 3.  [LOCAL EDUCATION AND EMPLOYMENT TRANSITIONS 
337.8   SYSTEMS.] A local education and employment transitions 
337.9   partnership must assess the needs of employers, employees, and 
337.10  learners, and develop a plan for implementing and achieving the 
337.11  objectives of a local or regional education and employment 
337.12  transitions system.  The plan must provide for a comprehensive 
337.13  local system for assisting learners and workers in making the 
337.14  transition from school to work or for retraining in a new 
337.15  vocational area.  The objectives expected outcomes of a local 
337.16  education and employment transitions system include:  
337.17     (1) increasing the effectiveness of the educational 
337.18  programs and curriculum of elementary, secondary, and 
337.19  post-secondary schools which meet state and local graduation 
337.20  standards and the work site in preparing prepare students in the 
337.21  skills and knowledge needed to be successful in the workplace; 
337.22     (2) implementing learner outcomes for students in grades 
337.23  kindergarten through 12 designed to introduce the world of work 
337.24  and to explore career opportunities, including nontraditional 
337.25  career opportunities; 
337.26     (3) eliminating barriers to providing effective integrated 
337.27  applied learning, service-learning, or work-based curriculum; 
337.28     (4) increasing opportunities to apply academic knowledge 
337.29  and skills, including skills needed in the workplace, in local 
337.30  settings which include the school, school-based enterprises, 
337.31  post-secondary institutions, the workplace, and the community; 
337.32     (5) increasing applied instruction in the attitudes and 
337.33  skills essential for success in the workplace, including 
337.34  cooperative working, leadership, problem-solving, and respect 
337.35  for diversity; 
337.36     (6) providing staff training for vocational guidance 
338.1   counselors, teachers, and other appropriate staff in the 
338.2   importance of preparing learners for the transition to work, and 
338.3   in methods of providing instruction that incorporate applied 
338.4   learning, work-based learning, and service-learning experiences; 
338.5      (7) (4) identifying and enlisting local and regional 
338.6   employers who can effectively provide work-based or 
338.7   service-learning opportunities, including, but not limited to, 
338.8   apprenticeships, internships, and mentorships; 
338.9      (8) (5) recruiting community and workplace mentors 
338.10  including peers, parents, employers and employed individuals 
338.11  from the community, and employers of high school students; 
338.12     (9) (6) identifying current and emerging educational, 
338.13  training, and employment needs of the area or region, especially 
338.14  within industries with potential for job growth; 
338.15     (10) (7) improving the coordination and effectiveness of 
338.16  local vocational and job training programs, including vocational 
338.17  education, adult basic education, tech prep, apprenticeship, 
338.18  service-learning, youth entrepreneur, youth training and 
338.19  employment programs administered by the commissioner of economic 
338.20  security, and local job training programs under the Job Training 
338.21  Partnership Act, United States Code, title 29, section 1501, et 
338.22  seq.; 
338.23     (11) (8) identifying and applying for federal, state, 
338.24  local, and private sources of funding for vocational or applied 
338.25  learning programs; 
338.26     (12) (9) providing students with current information and 
338.27  counseling about career opportunities, potential employment, 
338.28  educational opportunities in post-secondary institutions, 
338.29  workplaces, and the community, and the skills and knowledge 
338.30  necessary to succeed; 
338.31     (13) providing educational technology, including 
338.32  interactive television networks and other distance learning 
338.33  methods, to ensure access to a broad variety of work-based 
338.34  learning opportunities; 
338.35     (14) (10) including students with disabilities in a 
338.36  district's vocational or applied learning program and ways to 
339.1   serve at-risk learners through collaboration with area learning 
339.2   centers under sections 123A.05 to 123A.09, or other alternative 
339.3   programs; and 
339.4      (15) (11) providing a warranty to employers, post-secondary 
339.5   education programs, and other post-secondary training programs, 
339.6   that learners successfully completing a high school work-based 
339.7   or applied learning program will be able to apply the knowledge 
339.8   and work skills included in the program outcomes or graduation 
339.9   requirements.  The warranty shall require education and training 
339.10  programs to continue to work with those learners that need 
339.11  additional skill development until they can demonstrate 
339.12  achievement of the program outcomes or graduation requirements. 
339.13     Sec. 26.  Minnesota Statutes 1998, section 124D.65, 
339.14  subdivision 6, is amended to read: 
339.15     Subd. 6.  [PARTICIPATION OF NONPUBLIC SCHOOL PUPILS.] In 
339.16  counting the number of pupils of limited English proficiency for 
339.17  purposes of this section, districts may include pupils of 
339.18  limited English proficiency who attend nonpublic schools in the 
339.19  district.  A district which counts those pupils and receives aid 
339.20  pursuant to this section must offer those pupils the same 
339.21  programs on the same terms that it offers to pupils of limited 
339.22  English proficiency who attend the public school.  A program 
339.23  provided for a nonpublic school pupil pursuant to this 
339.24  subdivision must be provided at a public school or, a neutral 
339.25  site as defined in section 123B.41, subdivision 13, the 
339.26  nonpublic school, or any other suitable location.  The school 
339.27  district must make the final decision on the location of these 
339.28  services.  Nonpublic school pupils served by a district's 
339.29  educational program for pupils of limited English proficiency 
339.30  must be counted for average daily membership pursuant to 
339.31  sections 126C.01, subdivisions 6 to 8, and 126C.19, subdivisions 
339.32  1 to 4.  
339.33     Sec. 27.  Minnesota Statutes 1998, section 124D.74, 
339.34  subdivision 1, is amended to read: 
339.35     Subdivision 1.  [PROGRAM DESCRIBED OUTCOMES.] American 
339.36  Indian language and culture education programs are programs in 
340.1   elementary and secondary schools enrolling American Indian 
340.2   children designed: 
340.3      (1) to make the curriculum more relevant to the needs, 
340.4   interests, and cultural heritage of American Indian pupils; 
340.5      (2) to provide positive reinforcement of the self-image of 
340.6   American Indian pupils; and 
340.7      (3) to develop intercultural awareness among pupils, 
340.8   parents, and staff.  Program components may include:  
340.9   instruction in American Indian language, literature, history, 
340.10  and culture; development of support components for staff, 
340.11  including in-service training and technical assistance in 
340.12  methods of teaching American Indian pupils; research projects, 
340.13  including experimentation with and evaluation of methods of 
340.14  relating to American Indian pupils; provision of personal and 
340.15  vocational counseling to American Indian pupils; modification of 
340.16  curriculum, instructional methods, and administrative procedures 
340.17  to meet the needs of American Indian pupils; and establishment 
340.18  of cooperative liaisons with nonsectarian nonpublic, community, 
340.19  tribal or alternative schools offering curricula which reflect 
340.20  American Indian culture.  Districts offering programs may make 
340.21  contracts for the provision of program components by 
340.22  nonsectarian nonpublic, community, tribal or alternative 
340.23  schools.  These programs may also be provided as components of 
340.24  early childhood and family education programs. 
340.25     Sec. 28.  Minnesota Statutes 1998, section 124D.88, 
340.26  subdivision 2, is amended to read: 
340.27     Subd. 2.  [APPROVAL AUTHORITY; APPLICATION FORMS.] To the 
340.28  extent money is available, The commissioner may approve projects 
340.29  from applications submitted under this section.  The grant money 
340.30  must be used only to design, acquire, construct, expand, 
340.31  remodel, improve, furnish, or equip the building or site of a 
340.32  magnet school facility according to contracts entered into 
340.33  within 24 months after the date on which a grant is awarded. 
340.34     Sec. 29.  Minnesota Statutes 1998, section 124D.892, is 
340.35  amended to read: 
340.36     124D.892 [OFFICE OF DESEGREGATION/INTEGRATION.] 
341.1      Subdivision 1.  [ESTABLISHMENT.] (a) An office of 
341.2   desegregation/integration is established in The department 
341.3   commissioner of children, families, and learning to must 
341.4   coordinate and support activities related to student enrollment, 
341.5   student and staff recruitment and retention, transportation, and 
341.6   interdistrict cooperation among metropolitan school districts.  
341.7      (b) At the request of a metropolitan school district 
341.8   involved in cooperative desegregation/integration efforts, the 
341.9   office commissioner shall perform any of the following 
341.10  activities: 
341.11     (1) assist districts with interdistrict student transfers, 
341.12  including student recruitment, counseling, placement, and 
341.13  transportation; 
341.14     (2) coordinate and disseminate information about schools 
341.15  and programs; 
341.16     (3) assist districts with new magnet schools and programs; 
341.17     (4) assist districts in providing staff development and 
341.18  in-service training; and 
341.19     (5) coordinate and administer staff exchanges. 
341.20     (c) The office commissioner shall collect data on the 
341.21  efficacy of districts' desegregation/integration efforts and 
341.22  make recommendations based on the data.  The office commissioner 
341.23  shall periodically consult with the metropolitan council to 
341.24  coordinate school desegregation/integration efforts with the 
341.25  housing, social, economic, and infrastructure needs of the 
341.26  metropolitan area.  The office commissioner shall develop a 
341.27  process for resolving students' disputes and grievances about 
341.28  student transfers under a desegregation/integration plan.  
341.29     Subd. 2.  [COORDINATION.] The commissioner may request 
341.30  information or assistance from, or contract with, any state or 
341.31  local agency or officer, local unit of government, or recognized 
341.32  expert to assist the commissioner in performing the activities 
341.33  described in subdivision 1.  
341.34     Subd. 3.  [ADVISORY BOARD.] The commissioner shall 
341.35  establish an advisory board composed of: 
341.36     (1) eight superintendents, each of whom shall be selected 
342.1   by the superintendents of the school districts located in whole 
342.2   or in part within each of the eight metropolitan districts 
342.3   established under section 473.123, subdivision 3c; and 
342.4      (2) one person each selected by the Indian affairs council, 
342.5   the council on Asian-Pacific Minnesotans, the council on Black 
342.6   Minnesotans, and the council on affairs of Chicano/Latino people.
342.7      The advisory board shall advise the office commissioner on 
342.8   complying with the requirements under subdivision 1.  The 
342.9   advisory board may solicit comments from teachers, parents, 
342.10  students, and interested community organizations and others. 
342.11     Sec. 30.  Minnesota Statutes 1998, section 124D.894, is 
342.12  amended to read: 
342.13     124D.894 [STATE MULTICULTURAL EDUCATION ADVISORY 
342.14  COMMITTEE.] 
342.15     (a) The commissioner shall appoint a state multicultural 
342.16  education advisory committee to advise the department and the 
342.17  state board on multicultural education.  The committee must have 
342.18  12 members and be composed of representatives from among the 
342.19  following groups and community organizations:  African-American, 
342.20  Asian-Pacific, Hispanic, and American Indian. 
342.21     (b) The state committee shall provide information and 
342.22  recommendations on: 
342.23     (1) department procedures for reviewing and approving 
342.24  district plans and disseminating information on multicultural 
342.25  education; 
342.26     (2) department procedures for improving inclusive education 
342.27  plans, curriculum and instruction improvement plans, and 
342.28  performance-based assessments; 
342.29     (3) developing learner outcomes which are multicultural; 
342.30  and 
342.31     (4) other recommendations that will further inclusive, 
342.32  multicultural education. 
342.33     (c) The committee shall also participate in determining the 
342.34  criteria for and awarding the grants established under Laws 
342.35  1993, chapter 224, article 8, section 22, subdivision 8. 
342.36     Sec. 31.  Minnesota Statutes 1998, section 124D.94, 
343.1   subdivision 2, is amended to read: 
343.2      Subd. 2.  [CREATION OF FOUNDATION.] There is created the 
343.3   Minnesota academic excellence foundation.  The purpose of the 
343.4   foundation shall be to promote academic excellence in Minnesota 
343.5   public and nonpublic schools and communities through 
343.6   public-private partnerships.  The foundation shall be a 
343.7   nonprofit organization.  The board of directors of the 
343.8   foundation and foundation activities are under the direction of 
343.9   the state board of education. 
343.10     Sec. 32.  Minnesota Statutes 1998, section 124D.94, 
343.11  subdivision 4, is amended to read: 
343.12     Subd. 4.  [FOUNDATION PROGRAMS.] The foundation may shall 
343.13  develop programs that advance the concept of educational 
343.14  excellence in Minnesota public and nonpublic schools and 
343.15  communities through public-private partnerships.  These may 
343.16  include, but are not limited to:  
343.17     (a) recognition programs and awards for students 
343.18  demonstrating academic excellence; 
343.19     (b) summer institute programs for students with special 
343.20  talents; 
343.21     (c) recognition programs for teachers, administrators, and 
343.22  others who contribute to academic excellence; 
343.23     (d) summer mentorship programs with business and industry 
343.24  for students with special career interests and high academic 
343.25  achievements; 
343.26     (e) governor's awards ceremonies and special campaigns to 
343.27  promote awareness and expectation for academic achievement; 
343.28     (f) an academic league to provide organized challenges 
343.29  requiring cooperation and competition for public and nonpublic 
343.30  pupils in elementary and secondary schools; 
343.31     (g) systemic transformation initiatives and assistance and 
343.32  training to community teams to increase school performance in 
343.33  the state's education institutions through strategic quality 
343.34  planning for continuous improvement, empowerment of multiple 
343.35  stakeholders, validation of results via customer-supplier 
343.36  relationships, and a total system approach based on best 
344.1   practices in key process areas; and 
344.2      (h) activities to measure customer satisfaction for 
344.3   delivery of services to education institutions in order to plan 
344.4   for and implement continuous improvement. 
344.5      To the extent possible, the foundation shall make these 
344.6   programs available to students in all parts of the state. 
344.7      Sec. 33.  [REVISOR INSTRUCTION.] 
344.8      In the next and subsequent editions of Minnesota Statutes 
344.9   and Minnesota Rules, the revisor of statutes shall renumber each 
344.10  section of Minnesota Statutes in column A with the number in 
344.11  column B.  The revisor shall also make necessary cross-reference 
344.12  changes consistent with the renumbering. 
344.13  A                          B     
344.14     
344.15  124D.35                    124D.46, subd. 5      
344.16  124D.46, subd. 4           268.665, subd. 7      
344.17  124D.47, subd. 2           124D.46, subd. 6      
344.18     Sec. 34.  [REPEALER.] 
344.19     (a) Minnesota Statutes 1998, sections 124D.02, subdivisions 
344.20  2, 3, and 4; 124D.03, subdivisions 5, 7, 9, and 10; 124D.06; 
344.21  124D.07; 124D.081, subdivision 1; 124D.09, subdivisions 2, 8, 
344.22  25, and 26; 124D.10, subdivision 13; 124D.115, subdivisions 1 
344.23  and 2; 124D.118, subdivision 1; 124D.12; 124D.121; 124D.122; 
344.24  124D.123; 124D.124; 124D.125; 124D.126; 124D.127; 124D.128, 
344.25  subdivisions 1, 2, 3, 4, 5, and 7; 124D.31; 124D.34, subdivision 
344.26  5; 124D.43; 124D.46, subdivision 3; 124D.47, subdivision 1; 
344.27  124D.50, subdivisions 1, 2, and 3; 124D.60, subdivision 3; 
344.28  124D.65, subdivisions 8, 9, and 10; 124D.68, subdivision 1; 
344.29  124D.72; 124D.81, subdivision 7; 124D.88, subdivision 1; 
344.30  124D.895; 124D.90, subdivision 5; 124D.91; 124D.92; and 124D.93, 
344.31  are repealed. 
344.32     (b) Minnesota Statutes 1998, section 124D.128, subdivision 
344.33  6, is repealed effective July 1, 2001. 
344.34                             ARTICLE 17
344.35                      EDUCATION AND TECHNOLOGY 
344.36     Section 1.  Minnesota Statutes 1998, section 125B.05, 
344.37  subdivision 1, is amended to read: 
344.38     Subdivision 1.  [INFORMATION SYSTEM.] The department of 
345.1   children, families, and learning shall develop and maintain a 
345.2   computerized an information system for state information needs.  
345.3      Sec. 2.  Minnesota Statutes 1998, section 125B.05, 
345.4   subdivision 2, is amended to read: 
345.5      Subd. 2.  [PURPOSES.] The purposes of the computerized 
345.6   information system shall be:  
345.7      (a) To provide comparable and accurate educational 
345.8   information in a manner which is timely and economical; 
345.9      (b) To ensure accountability for state appropriations; 
345.10     (c) To collect data to assess the needs of learners and 
345.11  children; 
345.12     (d) To provide school districts with an educational 
345.13  information system capability which will meet school district 
345.14  management needs; and 
345.15     (e) To provide for computerized analysis of educational 
345.16  information to meet the management needs of the state of 
345.17  Minnesota. 
345.18     Sec. 3.  Minnesota Statutes 1998, section 125B.20, 
345.19  subdivision 1, is amended to read: 
345.20     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] The purpose of 
345.21  developing a statewide school district telecommunications 
345.22  network is to expand the availability of a broad range of 
345.23  courses and degrees to students throughout the state, to share 
345.24  information resources to improve access, quality, and 
345.25  efficiency, to improve learning, and distance cooperative 
345.26  learning opportunities, and to promote the exchange of ideas 
345.27  among students, parents, teachers, media generalists, 
345.28  librarians, and the public.  In addition, through the 
345.29  development of this statewide telecommunications network 
345.30  emphasizing cost-effective, competitive connections, all 
345.31  Minnesotans will benefit by enhancing access to 
345.32  telecommunications technology throughout the state.  Network 
345.33  connections for school districts and public libraries will be 
345.34  coordinated and fully integrated into the existing state 
345.35  telecommunications and interactive television networks to 
345.36  achieve comprehensive and efficient interconnectivity of school 
346.1   districts and libraries to higher education institutions, state 
346.2   agencies, other governmental units, agencies, and institutions 
346.3   throughout Minnesota.  A school district may apply to the 
346.4   commissioner for a grant under subdivision 2, and a regional 
346.5   public library may apply under subdivision 3.  The Minnesota 
346.6   education telecommunication council established in Laws 1995, 
346.7   First Special Session chapter 3, article 12, section 7, shall 
346.8   establish priorities for awarding grants, making grant awards, 
346.9   and being responsible for the coordination of networks. 
346.10     Sec. 4.  Minnesota Statutes 1998, section 125B.20, 
346.11  subdivision 4, is amended to read: 
346.12     Subd. 4.  [AWARD OF GRANTS.] The council shall develop 
346.13  application forms and procedures for school district minimum 
346.14  connectivity grants, enhanced telecommunications grants, and 
346.15  regional library telecommunication access grants.  The council 
346.16  shall select the grant recipient and shall promptly notify any 
346.17  applicant that is found not to be qualified.  The commissioner 
346.18  shall make the grant payments directly to the school district or 
346.19  regional library system.  At the request of the district, the 
346.20  commissioner may make the grant payment directly to the 
346.21  coordinating organization.  If appropriations are insufficient 
346.22  to fund all applications, the commissioner shall first fully 
346.23  fund the minimum connectivity grants.  Unsuccessful applicants 
346.24  may reapply for a grant. 
346.25     Sec. 5.  [REPEALER.] 
346.26     Minnesota Statutes 1998, sections 125B.02; 125B.07, 
346.27  subdivisions 1, 3, and 5; 125B.09; and 125B.11, are repealed. 
346.28                             ARTICLE 18 
346.29                         EDUCATION FUNDING 
346.30     Section 1.  Minnesota Statutes 1998, section 126C.05, 
346.31  subdivision 1, is amended to read: 
346.32     Subdivision 1.  [PUPIL UNIT.] Pupil units for each 
346.33  Minnesota resident pupil in average daily membership enrolled in 
346.34  the district of residence, in another district under sections 
346.35  123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 
346.36  124D.68; in a charter school under section 124D.10; or for whom 
347.1   the resident district pays tuition under section 123A.18, 
347.2   123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
347.3   subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
347.4   125A.65, shall be counted according to this subdivision.  A 
347.5   district may not count a person who is over the age of 21, 
347.6   except as provided in section 125A.03, or who has graduated from 
347.7   high school and is enrolled as a part-time student in a class or 
347.8   program as a pupil unit. 
347.9      (a) A prekindergarten pupil with a disability who is 
347.10  enrolled in a program approved by the commissioner and has an 
347.11  individual education plan is counted as the ratio of the number 
347.12  of hours of assessment and education service to 825 with a 
347.13  minimum of 0.28, but not more than one. 
347.14     (b) A prekindergarten pupil who is assessed but determined 
347.15  not to be handicapped is counted as the ratio of the number of 
347.16  hours of assessment service to 825.  
347.17     (c) A kindergarten pupil with a disability who is enrolled 
347.18  in a program approved by the commissioner is counted as the 
347.19  ratio of the number of hours of assessment and education 
347.20  services required in the fiscal year by the pupil's individual 
347.21  education program plan to 875, but not more than one. 
347.22     (d) A kindergarten pupil who is not included in paragraph 
347.23  (c) is counted as .53 of a pupil unit for fiscal year 1995 and 
347.24  thereafter. 
347.25     (e) A pupil who is in any of grades 1 to 6 is counted as 
347.26  1.06 pupil units for fiscal year 1995 and thereafter. 
347.27     (f) A pupil who is in any of grades 7 to 12 is counted as 
347.28  1.3 pupil units.  
347.29     (g) A pupil who is in the post-secondary enrollment options 
347.30  program is counted as 1.3 pupil units. 
347.31     Sec. 2.  Minnesota Statutes 1998, section 126C.31, is 
347.32  amended to read: 
347.33     126C.31 [POLICY.] 
347.34     Financing the education of our children is one of state 
347.35  government's most important functions.  In performing this 
347.36  function, the state seeks to provide sufficient funding while 
348.1   encouraging equity, accountability, and incentives toward 
348.2   quality improvement.  To help achieve these goals and to help 
348.3   control future spending growth, The state will fund core 
348.4   instruction and related support services, will facilitate 
348.5   improvement in the quality and delivery of programs and 
348.6   services, and will equalize revenues raised locally for 
348.7   discretionary purposes. 
348.8      Sec. 3.  Minnesota Statutes 1998, section 126C.48, 
348.9   subdivision 8, is amended to read: 
348.10     Subd. 8.  [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 
348.11  Reductions in levies pursuant to sections 126C.48, subdivision 
348.12  1, and 273.138, must be made prior to the reductions in clause 
348.13  (2). 
348.14     (2) Notwithstanding any other law to the contrary, 
348.15  Districts which received payments pursuant to sections 298.018; 
348.16  298.23 to 298.28, except an amount distributed under section 
348.17  298.28, subdivision 4, paragraph (c), clause (ii); 298.34 to 
348.18  298.39; 298.391 to 298.396; 298.405; and any law imposing a tax 
348.19  upon severed mineral values, or recognized revenue pursuant to 
348.20  section 477A.15; must not include a portion of these aids in 
348.21  their permissible levies pursuant to those sections, but instead 
348.22  must reduce the permissible levies authorized by this chapter 
348.23  and chapters 120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A 
348.24  by the greater of the following: 
348.25     (a) an amount equal to 50 percent of the total dollar 
348.26  amount of the payments received pursuant to those sections or 
348.27  revenue recognized pursuant to section 477A.15 in the previous 
348.28  fiscal year; or 
348.29     (b) an amount equal to the total dollar amount of the 
348.30  payments received pursuant to those sections or revenue 
348.31  recognized pursuant to section 477A.15 in the previous fiscal 
348.32  year less the product of the same dollar amount of payments or 
348.33  revenue times five percent. 
348.34     (3) No reduction pursuant to this subdivision shall reduce 
348.35  the levy made by the district pursuant to section 126C.13, to an 
348.36  amount less than the amount raised by a levy of a net tax rate 
349.1   of 6.82 percent times the adjusted net tax capacity for taxes 
349.2   payable in 1990 and thereafter of that district for the 
349.3   preceding year as determined by the commissioner.  The amount of 
349.4   any increased levy authorized by referendum pursuant to section 
349.5   126C.17, subdivision 9, shall not be reduced pursuant to this 
349.6   subdivision.  The amount of any levy authorized by section 
349.7   126C.43, to make payments for bonds issued and for interest 
349.8   thereon, shall not be reduced pursuant to this subdivision.  
349.9      (4) Before computing the reduction pursuant to this 
349.10  subdivision of the health and safety levy authorized by sections 
349.11  123B.57 and 126C.40, subdivision 5, the commissioner shall 
349.12  ascertain from each affected school district the amount it 
349.13  proposes to levy under each section or subdivision.  The 
349.14  reduction shall be computed on the basis of the amount so 
349.15  ascertained. 
349.16     (5) Notwithstanding any law to the contrary, Any amounts 
349.17  received by districts in any fiscal year pursuant to sections 
349.18  298.018; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 
349.19  298.405; or any law imposing a tax on severed mineral values; 
349.20  and not deducted from general education aid pursuant to section 
349.21  126C.21, subdivision 4, clause (2), and not applied to reduce 
349.22  levies pursuant to this subdivision shall be paid by the 
349.23  district to the St. Louis county auditor in the following amount 
349.24  by March 15 of each year, the amount required to be subtracted 
349.25  from the previous fiscal year's general education aid pursuant 
349.26  to section 126C.21, subdivision 4, which is in excess of the 
349.27  general education aid earned for that fiscal year.  The county 
349.28  auditor shall deposit any amounts received pursuant to this 
349.29  clause in the St. Louis county treasury for purposes of paying 
349.30  the taconite homestead credit as provided in section 273.135. 
349.31                             ARTICLE 19 
349.32                 STATE ADMINISTRATION OF EDUCATION 
349.33     Section 1.  Minnesota Statutes 1998, section 127A.05, 
349.34  subdivision 1, is amended to read: 
349.35     Subdivision 1.  [APPOINTMENT AND DUTIES.] The department 
349.36  shall be under the administrative control of the commissioner of 
350.1   children, families, and learning which office is established.  
350.2   The commissioner shall be the secretary of the state board.  The 
350.3   governor shall appoint the commissioner under the provisions of 
350.4   section 15.06.  
350.5      The commissioner shall be a person who possesses 
350.6   educational attainment and breadth of experience in the 
350.7   administration of public education and of the finances 
350.8   pertaining thereto commensurate with the spirit and intent of 
350.9   this code.  Notwithstanding any other law to the contrary, the 
350.10  commissioner may appoint two deputy commissioners who shall 
350.11  serve in the unclassified service.  The commissioner shall also 
350.12  appoint other employees as may be necessary for the organization 
350.13  of the department.  The commissioner shall perform such duties 
350.14  as the law and the rules of the state board may provide and be 
350.15  held responsible for the efficient administration and discipline 
350.16  of the department.  The commissioner shall make recommendations 
350.17  to the board and be charged with the execution of powers and 
350.18  duties which the state board may prescribe, from time to time, 
350.19  to promote public education in the state, to safeguard the 
350.20  finances pertaining thereto, and to enable the state board to 
350.21  carry out its duties.  
350.22     Sec. 2.  Minnesota Statutes 1998, section 127A.05, 
350.23  subdivision 3, is amended to read: 
350.24     Subd. 3.  [GENERAL SUPERVISION OVER PUBLIC SCHOOLS AND 
350.25  EDUCATIONAL AGENCIES.] The commissioner of children, families, 
350.26  and learning shall adopt goals for and exercise general 
350.27  supervision over public schools and other public educational 
350.28  agencies in the state, classify and standardize public 
350.29  elementary and secondary schools, and prepare for them outlines 
350.30  and suggested courses of study.  The commissioner shall develop 
350.31  a plan to attain the adopted goals.  The commissioner may 
350.32  recognize educational accrediting agencies for the sole purposes 
350.33  of sections 120A.22, 120A.24, and 120A.26. 
350.34     Sec. 3.  Minnesota Statutes 1998, section 127A.05, 
350.35  subdivision 4, is amended to read: 
350.36     Subd. 4.  [ADMINISTRATIVE RULES.] The commissioner may 
351.1   adopt new rules and amend them or amend any existing rules only 
351.2   under specific authority.  The commissioner may repeal any 
351.3   existing rules.  Notwithstanding the provisions of section 
351.4   14.05, subdivision 4, the commissioner may grant a variance to 
351.5   rules adopted by the commissioner upon application by a school 
351.6   district for purposes of implementing experimental programs in 
351.7   learning or school management.  This subdivision shall not 
351.8   prohibit the commissioner from making technical changes or 
351.9   corrections to adopted rules. 
351.10     Sec. 4.  Minnesota Statutes 1998, section 127A.06, is 
351.11  amended to read: 
351.12     127A.06 [RECOMMENDATIONS; BUDGET.] 
351.13     The commissioner of children, families, and learning shall 
351.14  recommend to the governor and legislature such modification and 
351.15  unification of laws relating to the state system of education as 
351.16  shall make those laws more readily understood and more effective 
351.17  in execution.  The commissioner of children, families, and 
351.18  learning shall prepare a biennial education budget which shall 
351.19  be submitted to the governor and legislature, such budget to 
351.20  contain a complete statement of finances pertaining to the 
351.21  maintenance operations of the state department and to the 
351.22  distribution of state aid.  
351.23     Sec. 5.  Minnesota Statutes 1998, section 127A.41, 
351.24  subdivision 7, is amended to read: 
351.25     Subd. 7.  [SCHEDULE ADJUSTMENTS.] (a) It is the intention 
351.26  of the legislature to encourage efficient and effective use of 
351.27  staff and facilities by districts.  Districts are encouraged to 
351.28  consider both cost and energy saving measures. 
351.29     (b) Any district operating a program pursuant to sections 
351.30  124D.12 to 124D.127, 124D.128, or 124D.25 to 124D.29, or 
351.31  operating a commissioner-designated area learning center program 
351.32  under section 123A.09, or that otherwise receives the approval 
351.33  of the commissioner to operate its instructional program to 
351.34  avoid an aid reduction in any year, may adjust the annual school 
351.35  schedule for that program throughout the calendar year.  
351.36     Sec. 6.  Minnesota Statutes 1998, section 127A.42, 
352.1   subdivision 2, is amended to read: 
352.2      Subd. 2.  [VIOLATIONS OF LAW.] The commissioner shall may 
352.3   reduce the district's special state aid for any school year 
352.4   whenever the board of the district authorizes or permits 
352.5   violations of law within the district by:. 
352.6      (1) employing a teacher who does not hold a valid teaching 
352.7   license or permit in a public school; 
352.8      (2) noncompliance with a mandatory rule of general 
352.9   application promulgated by the state board in accordance with 
352.10  statute, unless special circumstances make enforcement 
352.11  inequitable, impose an extraordinary hardship on the district, 
352.12  or the rule is contrary to the district's best interests; 
352.13     (3) the district's continued performance of a contract made 
352.14  for the rental of rooms or buildings for school purposes or for 
352.15  the rental of any facility owned or operated by or under the 
352.16  direction of any private organization, if the contract has been 
352.17  disapproved, the time for review of the determination of 
352.18  disapproval has expired, and no proceeding for review is 
352.19  pending; 
352.20     (4) any practice which is a violation of sections 1 and 2 
352.21  of article 13 of the Constitution of the state of Minnesota; 
352.22     (5) failure to reasonably provide for a resident pupil's 
352.23  school attendance under Minnesota Statutes; or 
352.24     (6) noncompliance with state laws prohibiting 
352.25  discrimination because of race, color, creed, religion, national 
352.26  origin, sex, age, marital status, status with regard to public 
352.27  assistance or disability, as defined in section 363.03. 
352.28  The reduction must be made in the amount and upon the procedure 
352.29  provided in this section or, in the case of the violation stated 
352.30  in clause (1), upon the procedure provided in section 127A.43.  
352.31     Sec. 7.  [REPEALER.] 
352.32     Minnesota Statutes 1998, sections 127A.05, subdivision 5; 
352.33  and 127A.41, subdivision 4, are repealed. 
352.34                             ARTICLE 20 
352.35                 PERPICH CENTER FOR ARTS EDUCATION 
352.36     Section 1.  Minnesota Statutes 1998, section 129C.10, 
353.1   subdivision 3, is amended to read: 
353.2      Subd. 3.  [POWERS AND DUTIES OF BOARD.] (a) The board has 
353.3   the powers necessary for the care, management, and control of 
353.4   the Lola and Rudy Perpich Minnesota center for arts education 
353.5   and all its real and personal property.  The powers shall 
353.6   include, but are not limited to, those listed in this 
353.7   subdivision. 
353.8      (b) The board may employ and discharge necessary employees, 
353.9   and contract for other services to ensure the efficient 
353.10  operation of the center for arts education. 
353.11     (c) The board may receive and award grants.  The board may 
353.12  establish a charitable foundation and accept, in trust or 
353.13  otherwise, any gift, grant, bequest, or devise for educational 
353.14  purposes and hold, manage, invest, and dispose of them and the 
353.15  proceeds and income of them according to the terms and 
353.16  conditions of the gift, grant, bequest, or devise and its 
353.17  acceptance.  The board must adopt internal procedures to 
353.18  administer and monitor aids and grants. 
353.19     (d) The board may establish or coordinate evening, 
353.20  continuing education, extension, and summer programs for 
353.21  teachers and pupils. 
353.22     (e) The board may identify pupils who have artistic talent, 
353.23  either demonstrated or potential, in dance, literary arts, media 
353.24  arts, music, theater, and visual arts, or in more than one art 
353.25  form. 
353.26     (f) The board must educate pupils with artistic talent by 
353.27  providing:  
353.28     (1) an interdisciplinary academic and arts program for 
353.29  pupils in the 11th and 12th grades.  The total number of pupils 
353.30  accepted under this clause and clause (2) shall not exceed 300; 
353.31     (2) additional instruction to pupils for a 13th grade. 
353.32  Pupils eligible for this instruction are those enrolled in 12th 
353.33  grade who need extra instruction and who apply to the board, or 
353.34  pupils enrolled in the 12th grade who do not meet learner 
353.35  outcomes established by the board; 
353.36     (3) intensive arts seminars for one or two weeks for pupils 
354.1   in grades 9 to 12; 
354.2      (4) summer arts institutes for pupils in grades 9 to 12; 
354.3      (5) artist mentor and extension programs in regional sites; 
354.4   and 
354.5      (6) teacher education programs for indirect curriculum 
354.6   delivery. 
354.7      (g) The board may determine the location for the Lola and 
354.8   Rudy Perpich Minnesota center for arts education and any 
354.9   additional facilities related to the center, including the 
354.10  authority to lease a temporary facility. 
354.11     (h) (e) The board must plan for the enrollment of pupils on 
354.12  an equal basis from each congressional district.  
354.13     (i) The board may establish task forces as needed to advise 
354.14  the board on policies and issues.  The task forces expire as 
354.15  provided in section 15.059, subdivision 6.  
354.16     (j) The board may request the commissioner of children, 
354.17  families, and learning for assistance and services. 
354.18     (k) The board may enter into contracts with other public 
354.19  and private agencies and institutions for residential and 
354.20  building maintenance services if it determines that these 
354.21  services could be provided more efficiently and less expensively 
354.22  by a contractor than by the board itself.  The board may also 
354.23  enter into contracts with public or private agencies and 
354.24  institutions, school districts or combinations of school 
354.25  districts, or service cooperatives to provide supplemental 
354.26  educational instruction and services. 
354.27     (l) The board may provide or contract for services and 
354.28  programs by and for the center for arts education, including a 
354.29  store, operating in connection with the center; theatrical 
354.30  events; and other programs and services that, in the 
354.31  determination of the board, serve the purposes of the center. 
354.32     (m) (f) The board may provide for transportation of pupils 
354.33  to and from the center for arts education for all or part of the 
354.34  school year, as the board considers advisable and subject to its 
354.35  rules.  Notwithstanding any other law to the contrary, and the 
354.36  board may charge a reasonable fee for transportation of pupils.  
355.1   Every driver providing transportation of pupils under this 
355.2   paragraph must possess all qualifications required by the state 
355.3   board of education.  The board may contract for furnishing 
355.4   authorized transportation under rules established by the 
355.5   commissioner of children, families, and learning and may 
355.6   purchase and furnish gasoline to a contract carrier for use in 
355.7   the performance of a contract with the board for transportation 
355.8   of pupils to and from the center for arts education.  When 
355.9   transportation is provided, scheduling of routes, establishment 
355.10  of the location of bus stops, the manner and method of 
355.11  transportation, the control and discipline of pupils, and any 
355.12  other related matter is within the sole discretion, control, and 
355.13  management of the board. 
355.14     (n) (g) The board may provide room and board for its pupils.
355.15  If the board provides room and board, it shall charge a 
355.16  reasonable fee for the room and board.  The fee is not subject 
355.17  to chapter 14 and is not a prohibited fee according to sections 
355.18  123B.34 to 123B.39.  
355.19     (o) (h) The board may establish and set fees for services 
355.20  and programs.  If the board sets fees not authorized or 
355.21  prohibited by the Minnesota public school fee law, it may do so 
355.22  without complying with the requirements of section 123B.38.  
355.23     (p) The board may apply for all competitive grants 
355.24  administered by agencies of the state and other government or 
355.25  nongovernment sources.