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        $5,350,000     .....     2000
 61.6      Of this amount: 
 61.7      (1) $3,950,000 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     (c) This appropriation is available until June 30, 2001.  
 61.24     Subd. 9.  [RANGE ASSOCIATION OF MUNICIPALITIES AND 
 61.25  SCHOOLS.] For a grant to the range association of municipalities 
 61.26  and schools to provide a coordinated response to declining 
 61.27  enrollment in the region's school districts, including analysis 
 61.28  of curriculum, transportation, and district administration, and 
 61.29  to coordinate planning for the establishment of an area 
 61.30  vocational-technical training center open to all high school 
 61.31  students in the region: 
 61.32       $250,000     .....     2000
 61.33     This appropriation is available until June 30, 2001. 
 61.34     Subd. 10.  [DECLINING PUPIL UNIT AID.] For declining pupil 
 61.35  unit aid: 
 61.36       $2,237,000     .....     2000 
 62.1        $2,036,000     .....     2001 
 62.2      Subd. 11.  [AIRPORT RUNWAY IMPACT AID.] For airport runway 
 62.3   impact aid: 
 62.4        $31,000     .....     2000 
 62.5        $66,000     .....     2001 
 62.6      Subd. 12.  [MAGNET SCHOOL INTEGRATION REVENUE.] For magnet 
 62.7   school integration revenue: 
 62.8         $64,000     .....     2000 
 62.9        $140,000     .....     2001 
 62.10     Subd. 13.  [MARGINAL COST TRANSITION GRANTS.] (a) For 
 62.11  marginal cost transition grants to school districts affected by 
 62.12  the change to marginal cost pupil units: 
 62.13       $3,085,000     .....     2000 
 62.14     Of this amount: 
 62.15     (1) $10,000 is for a grant to independent school district 
 62.16  No. 12, Centennial; 
 62.17     (2) $50,000 is for a grant to independent school district 
 62.18  No. 94, Cloquet; 
 62.19     (3) $120,000 is for a grant to independent school district 
 62.20  No. 97, Moose Lake; 
 62.21     (4) $60,000 is for a grant to independent school district 
 62.22  No. 51, Foley; 
 62.23     (5) $75,000 is for a grant to independent school district 
 62.24  No. 138, North Branch; 
 62.25     (6) $300,000 is for a grant to independent school district 
 62.26  No. 196, Rosemount-Apple Valley-Eagan; 
 62.27     (7) $10,000 is for a grant to independent school district 
 62.28  No. 227, Chatfield; 
 62.29     (8) $20,000 is for a grant to independent school district 
 62.30  No. 333, Ogilvie; 
 62.31     (9) $15,000 is for a grant to independent school district 
 62.32  No. 361, International Falls; 
 62.33     (10) $10,000 is for a grant to independent school district 
 62.34  No. 403, Ivanhoe; 
 62.35     (11) $40,000 is for a grant to independent school district 
 62.36  No. 463, Eden Valley-Watkins; 
 63.1      (12) $250,000 is for a grant to independent school district 
 63.2   No. 466, Dassel-Cokato; 
 63.3      (13) $135,000 is for a grant to independent school district 
 63.4   No. 482, Little Falls; 
 63.5      (14) $30,000 is for a grant to independent school district 
 63.6   No. 484, Pierz; 
 63.7      (15) $10,000 is for a grant to independent school district 
 63.8   No. 547, Parkers Prairie; 
 63.9      (16) $40,000 is for a grant to independent school district 
 63.10  No. 553, New York Mills; 
 63.11     (17) $25,000 is for a grant to independent school district 
 63.12  No. 577, Willow River; 
 63.13     (18) $15,000 is for a grant to independent school district 
 63.14  No. 584, Ruthton; 
 63.15     (19) $15,000 is for a grant to independent school district 
 63.16  No. 630, Red Lake Falls; 
 63.17     (20) $210,000 is for a grant to independent school district 
 63.18  No. 700, Hermantown; 
 63.19     (21) $20,000 is for a grant to independent school district 
 63.20  No. 707, Nett Lake; 
 63.21     (22) $85,000 is for a grant to independent school district 
 63.22  No. 721, New Prague; 
 63.23     (23) $400,000 is for a grant to independent school district 
 63.24  No. 748, Sartell; 
 63.25     (24) $920,000 is for a grant to independent school district 
 63.26  No. 831, Forest Lake; 
 63.27     (25) $10,000 is for a grant to independent school district 
 63.28  No. 879, Delano; 
 63.29     (26) $10,000 is for a grant to independent school district 
 63.30  No. 881, Maple Lake; 
 63.31     (27) $20,000 is for a grant to independent school district 
 63.32  No. 882, Monticello; 
 63.33     (28) $30,000 is for a grant to independent school district 
 63.34  No. 883, Rockford; 
 63.35     (29) $125,000 is for a grant to independent school district 
 63.36  No. 885, St. Michael-Albertville; 
 64.1      (30) $15,000 is for a grant to independent school district 
 64.2   No. 2149, Minnewaska; and 
 64.3      (31) $10,000 is for a grant to independent school district 
 64.4   No. 2155, Wadena-Deer Creek. 
 64.5      (b) This appropriation is available until June 30, 2001.  
 64.6      Sec. 84.  [REPEALER.] 
 64.7      (a) Minnesota Statutes 1998, sections 123B.89; 123B.92, 
 64.8   subdivisions 6, 7, 8, and 10; and 127A.41, subdivisions 8 and 9, 
 64.9   are repealed.  Laws 1997, First Special Session chapter 4, 
 64.10  article 1, section 62, subdivision 5, is repealed. 
 64.11     (b) Minnesota Statutes 1998, sections 120B.05; and 123B.64, 
 64.12  subdivision 4, are repealed effective for revenue for fiscal 
 64.13  year 2000. 
 64.14     (c) Minnesota Statutes 1998, sections 123B.64, subdivisions 
 64.15  1, 2, and 3; and 124D.65, subdivisions 1, 2, and 3, are repealed 
 64.16  effective for revenue for fiscal year 2001. 
 64.17     (d) Minnesota Statutes 1998, sections 124D.67; 126C.05, 
 64.18  subdivision 4; and 126C.06, are repealed effective the day 
 64.19  following final enactment. 
 64.20     Sec. 85.  [EFFECTIVE DATES.] 
 64.21     When preparing the prekindergarten through grade 12 
 64.22  education conference committee report for adoption by the 
 64.23  legislature, the revisor shall combine all effective date 
 64.24  notations in this article into this effective dates section. 
 64.25                             ARTICLE 2 
 64.26                          SPECIAL PROGRAMS 
 64.27     Section 1.  Minnesota Statutes 1998, section 121A.41, 
 64.28  subdivision 10, is amended to read: 
 64.29     Subd. 10.  [SUSPENSION.] (a) "Suspension" means an action 
 64.30  by the school administration, under rules promulgated by the 
 64.31  school board, prohibiting a pupil from attending school for a 
 64.32  period of no more than ten school days.  If a suspension is 
 64.33  longer than five days, the suspending administrator must provide 
 64.34  the superintendent with a reason for the longer suspension.  
 64.35  This definition does not apply to dismissal from school for one 
 64.36  school day or less, except as provided in federal law for a 
 65.1   student with a disability.  Each suspension action may include a 
 65.2   readmission plan.  The readmission plan shall include, where 
 65.3   appropriate, a provision for implementing alternative 
 65.4   educational services upon readmission and may not be used to 
 65.5   extend the current suspension.  The school administration may 
 65.6   not impose consecutive suspensions against the same pupil for 
 65.7   the same course of conduct, or incident of misconduct, except 
 65.8   where the pupil will create an immediate and substantial danger 
 65.9   to self or to surrounding persons or property, or where the 
 65.10  district is in the process of initiating an expulsion, in which 
 65.11  case the school administration may extend the suspension to a 
 65.12  total of 15 days.  In the case of a pupil with a 
 65.13  disability, school districts must comply with applicable federal 
 65.14  law the pupil's individual education plan team must meet 
 65.15  immediately but not more than ten school days after the date on 
 65.16  which the decision to remove the pupil from the pupil's current 
 65.17  education placement is made.  The individual education plan team 
 65.18  shall at that meeting: 
 65.19     (1) conduct a review of the relationship between the 
 65.20  pupil's disability and the behavior subject to disciplinary 
 65.21  action; and 
 65.22     (2) determine the appropriateness of the pupil's education 
 65.23  plan. 
 65.24     (b) The requirements of the individual education plan team 
 65.25  meeting apply when: 
 65.26     (1) the parent requests a meeting; 
 65.27     (2) the pupil is removed from the pupil's current placement 
 65.28  for five or more consecutive days; or 
 65.29     (3) the pupil's total days of removal from the pupil's 
 65.30  placement during the school year exceed ten cumulative days in a 
 65.31  school year.  
 65.32  The school administration shall implement alternative 
 65.33  educational services when the suspension exceeds five days.  A 
 65.34  separate administrative conference is required for each period 
 65.35  of suspension. 
 65.36     Sec. 2.  Minnesota Statutes 1998, section 121A.43, is 
 66.1   amended to read: 
 66.2      121A.43 [EXCLUSION AND EXPULSION OF PUPILS WITH A 
 66.3   DISABILITY.] 
 66.4      When a pupil who has an individual education plan is 
 66.5   excluded or expelled under sections 121A.40 to 121A.56 for 
 66.6   misbehavior that is not a manifestation of the pupil's 
 66.7   disability, the district shall continue to provide special 
 66.8   education and related services after a period of suspension, if 
 66.9   suspension is imposed.  The district shall initiate a review of 
 66.10  the pupil's individual education plan within five school days of 
 66.11  and conduct a review of the relationship between the pupil's 
 66.12  disability and the behavior subject to disciplinary action and 
 66.13  determine the appropriateness of the pupil's education plan 
 66.14  before commencing an expulsion, or exclusion, or a suspension.  
 66.15     Sec. 3.  Minnesota Statutes 1998, section 122A.26, is 
 66.16  amended by adding a subdivision to read: 
 66.17     Subd. 3.  [ENGLISH AS A SECOND LANGUAGE.] Notwithstanding 
 66.18  subdivision 2, a person who possesses a bachelor's or master's 
 66.19  degree in English as a second language, applied linguistics, 
 66.20  bilingual education, or who possesses a related degree as 
 66.21  approved by the commissioner of children, families, and 
 66.22  learning, shall be permitted to teach English as a second 
 66.23  language in an adult basic education program that receives 
 66.24  funding under section 124D.53.  
 66.25     Sec. 4.  Minnesota Statutes 1998, section 122A.28, is 
 66.26  amended to read: 
 66.27     122A.28 [TEACHERS OF DEAF AND HARD-OF-HEARING STUDENTS; 
 66.28  LICENSURE REQUIREMENTS.] 
 66.29     Subdivision 1.  [K-12 LICENSE TO TEACH DEAF AND 
 66.30  HARD-OF-HEARING STUDENTS.] The board of teaching must review and 
 66.31  determine appropriate licensure requirements for a candidate for 
 66.32  a license or an applicant for a continuing license to teach deaf 
 66.33  and hard-of-hearing students in prekindergarten through grade 12.
 66.34  In addition to other requirements, a candidate must demonstrate 
 66.35  the minimum level of proficiency in American sign language as 
 66.36  determined by the board.  
 67.1      Subd. 2.  [LICENSURE FOR TEACHING ORAL/AURAL DEAF EDUCATION 
 67.2   PROGRAMS.] (a) The board of teaching shall adopt a separate 
 67.3   licensure rule for a candidate for a license or an applicant for 
 67.4   a continuing license to teach in oral/aural deaf education 
 67.5   programs or to provide services, including itinerant oral/aural 
 67.6   deaf education services, to deaf and hard-of-hearing students in 
 67.7   prekindergarten through grade 12. 
 67.8      (b) The board shall design rule requirements for teaching 
 67.9   oral/aural deaf education in collaboration with representatives 
 67.10  of parents and educators of deaf and hard-of-hearing students, 
 67.11  post-secondary programs preparing teachers of deaf and 
 67.12  hard-of-hearing students, and the department of children, 
 67.13  families, and learning. 
 67.14     (c) Rule requirements for teaching oral/aural deaf 
 67.15  education shall reflect best practice research in oral/aural 
 67.16  deaf education.  Advanced competencies in teaching deaf and 
 67.17  hard-of-hearing students through oral/aural modes shall be 
 67.18  included. 
 67.19     (d) Licensure requirements for teachers of oral/aural deaf 
 67.20  education must include minimum competency in American sign 
 67.21  language, but are not subject to the guidelines established in 
 67.22  Laws 1993, chapter 224, article 3, section 32, as amended by 
 67.23  Laws 1998, chapter 398, article 2, section 47.  The signed 
 67.24  communication proficiency interview shall not be required for 
 67.25  teachers licensed to teach deaf and hard-of-hearing students 
 67.26  through oral/aural deaf education methods. 
 67.27     (e) Requirements for teachers or oral/aural deaf education 
 67.28  shall include appropriate continuing education requirements for 
 67.29  renewing this licensure. 
 67.30     Sec. 5.  Minnesota Statutes 1998, section 123A.05, 
 67.31  subdivision 2, is amended to read: 
 67.32     Subd. 2.  [RESERVE REVENUE.] Each district that is a member 
 67.33  of an area learning center must reserve revenue in an amount 
 67.34  equal to at least 90 percent of the district average general 
 67.35  education revenue less compensatory per pupil unit minus an 
 67.36  amount equal to the product of the formula allowance according 
 68.1   to section 126C.10, subdivision 2, times .0485, calculated 
 68.2   without basic skills revenue unit, transportation sparsity 
 68.3   revenue, and the transportation portion of the transition 
 68.4   revenue adjustment, times the number of pupil units attending an 
 68.5   area learning center program under this section.  The amount of 
 68.6   reserved revenue under this subdivision may only be spent on 
 68.7   program costs associated with the area learning center.  
 68.8   Compensatory revenue must be allocated according to section 
 68.9   126C.15, subdivision 2.  
 68.10     Sec. 6.  Minnesota Statutes 1998, section 123A.05, 
 68.11  subdivision 3, is amended to read: 
 68.12     Subd. 3.  [ACCESS TO SERVICES.] A center shall have access 
 68.13  to the district's regular education programs, special education 
 68.14  programs, technology facilities, and staff.  It may contract 
 68.15  with individuals or post-secondary institutions.  It shall seek 
 68.16  the involvement of community education programs, post-secondary 
 68.17  institutions, interagency collaboratives, culturally based 
 68.18  organizations, mutual assistance associations, and other 
 68.19  community resources, businesses, and other federal, state, and 
 68.20  local public agencies. 
 68.21     Sec. 7.  Minnesota Statutes 1998, section 123A.06, 
 68.22  subdivision 1, is amended to read: 
 68.23     Subdivision 1.  [PROGRAM FOCUS.] (a) The programs and 
 68.24  services of a center must focus on academic and learning skills, 
 68.25  applied learning opportunities, trade and vocational skills, 
 68.26  work-based learning opportunities, work experience, youth 
 68.27  service to the community, and transition services, and English 
 68.28  language and literacy programs for children whose primary 
 68.29  language is a language other than English.  Applied learning, 
 68.30  work-based learning, and service learning may best be developed 
 68.31  in collaboration with a local education and transitions 
 68.32  partnership, culturally based organizations, mutual assistance 
 68.33  associations, or other community resources.  In addition to 
 68.34  offering programs, the center shall coordinate the use of other 
 68.35  available educational services, special education services, 
 68.36  social services, health services, and post-secondary 
 69.1   institutions in the community and services area.  
 69.2      (b) Consistent with the requirements of sections 121A.40 to 
 69.3   121A.56, a school district may provide an alternative education 
 69.4   program for a student who is within the compulsory attendance 
 69.5   age under section 120A.20, and who is involved in severe or 
 69.6   repeated disciplinary action. 
 69.7      Sec. 8.  Minnesota Statutes 1998, section 123A.06, 
 69.8   subdivision 2, is amended to read: 
 69.9      Subd. 2.  [PEOPLE TO BE SERVED.] A center shall provide 
 69.10  programs for secondary pupils and adults.  A center may also 
 69.11  provide programs and services for elementary and secondary 
 69.12  pupils who are not attending the center to assist them in being 
 69.13  successful in school.  A center shall use research-based best 
 69.14  practices and offer bilingual education programs to students and 
 69.15  their parents whose primary language is a language other than 
 69.16  English.  An individual education plan team may identify a 
 69.17  center as an appropriate placement to the extent a center can 
 69.18  provide the student with the appropriate special education 
 69.19  services described in the student's plan.  Pupils eligible to be 
 69.20  served are those age five to adults 22 and older who qualify 
 69.21  under the graduation incentives program in section 124D.68, 
 69.22  subdivision 2, or those pupils who are eligible to receive 
 69.23  special education services under sections 125A.03 to 125A.24, 
 69.24  and 125A.65. 
 69.25     Sec. 9.  Minnesota Statutes 1998, section 124D.081, 
 69.26  subdivision 3, is amended to read: 
 69.27     Subd. 3.  [QUALIFYING SCHOOL SITE.] (a) The commissioner 
 69.28  shall rank all school sites with kindergarten programs that do 
 69.29  not exclusively serve students under sections 125A.03 to 
 69.30  125A.24, and 125A.65.  The ranking must be from highest to 
 69.31  lowest based on the site's free and reduced lunch count as a 
 69.32  percent of the fall enrollment using the preceding October 1 
 69.33  enrollment data.  Once a school site is calculated to be 
 69.34  eligible, it remains eligible for the duration of the pilot 
 69.35  program, unless the site's ranking falls below the state average 
 69.36  for elementary schools.  For each school site, the percentage 
 70.1   used to calculate the ranking must be the greater of (1) the 
 70.2   percent of the fall kindergarten enrollment receiving free and 
 70.3   reduced lunch, or (2) the percent of the total fall enrollment 
 70.4   receiving free and reduced lunch.  The list of ranked sites must 
 70.5   be separated into the following geographic areas:  Minneapolis 
 70.6   district, St. Paul district, suburban Twin Cities districts in 
 70.7   the seven-county metropolitan area, and school districts in 
 70.8   greater Minnesota. 
 70.9      (b) The commissioner shall establish a process and 
 70.10  timelines to qualify school sites for the next school year.  
 70.11  School sites must be qualified in each geographic area from the 
 70.12  list of ranked sites until the estimated revenue available for 
 70.13  this program has been allocated.  The total estimated revenue 
 70.14  must be distributed to qualified school sites in each geographic 
 70.15  area as follows:  25 percent for Minneapolis sites, 25 percent 
 70.16  for St. Paul sites, 25 percent for suburban Twin Cities sites, 
 70.17  and 25 percent for greater Minnesota. 
 70.18     Sec. 10.  Minnesota Statutes 1998, section 124D.081, 
 70.19  subdivision 8, is amended to read: 
 70.20     Subd. 8.  [EXPIRATION.] This section applies for fiscal 
 70.21  years 1997, 1998, and 1999, 2000, and 2001, and expires June 30, 
 70.22  1999 2001. 
 70.23     Sec. 11.  Minnesota Statutes 1998, section 124D.454, 
 70.24  subdivision 5, is amended to read: 
 70.25     Subd. 5.  [STATE TOTAL SCHOOL-TO-WORK PROGRAM-DISABLED 
 70.26  REVENUE.] The state total school-to-work program-disabled 
 70.27  revenue for fiscal year 1998 2000 equals $8,924,000 $8,982,000.  
 70.28  The state total school-to-work program-disabled revenue for 
 70.29  fiscal year 1999 2001 equals $8,976,000 $8,967,000.  The state 
 70.30  total school-to-work program-disabled revenue for later fiscal 
 70.31  years equals:  
 70.32     (1) the state total school-to-work program-disabled revenue 
 70.33  for the preceding fiscal year; times 
 70.34     (2) the program growth factor; times 
 70.35     (3) the ratio of the state total average daily membership 
 70.36  for the current fiscal year to the state total average daily 
 71.1   membership for the preceding fiscal year. 
 71.2      Sec. 12.  Minnesota Statutes 1998, section 124D.52, is 
 71.3   amended by adding a subdivision to read: 
 71.4      Subd. 4.  [ENGLISH AS A SECOND LANGUAGE PROGRAMS.] A person 
 71.5   may teach an English as a second language class conducted at a 
 71.6   worksite, if the person meets the requirements of section 
 71.7   122A.19, subdivision 1, clause (a), regardless of whether that 
 71.8   person holds a teacher's license.  A person teaching English as 
 71.9   a second language for an approved adult basic education program 
 71.10  must possess a bachelor's or master's degree in English as a 
 71.11  second language, applied linguistics, bilingual education, or a 
 71.12  related degree as approved by the commissioner. 
 71.13     Sec. 13.  Minnesota Statutes 1998, section 124D.65, 
 71.14  subdivision 4, is amended to read: 
 71.15     Subd. 4.  [STATE TOTAL LEP REVENUE.] (a) The state total 
 71.16  limited English proficiency programs revenue for fiscal 
 71.17  year 1998 2000 equals $14,629,000 $27,454,000.  The state total 
 71.18  limited English proficiency programs revenue for fiscal 
 71.19  year 1999 2001 equals $16,092,000 $31,752,000.  
 71.20     (b) The state total limited English proficiency programs 
 71.21  revenue for later fiscal years equals: 
 71.22     (1) the state total limited English proficiency programs 
 71.23  revenue for the preceding fiscal year; times 
 71.24     (2) the program growth factor under section 125A.76 
 71.25  subdivision 1; times 
 71.26     (3) the ratio of the state total number of pupils with 
 71.27  limited English proficiency for the current fiscal year to the 
 71.28  state total number of pupils with limited English proficiency 
 71.29  for the preceding fiscal year. 
 71.30     Sec. 14.  Minnesota Statutes 1998, section 124D.70, is 
 71.31  amended to read: 
 71.32     124D.70 [ADDITIONAL REVENUE FOR HOMELESS STUDENTS.] 
 71.33     In addition to revenue received under sections 124D.68, 
 71.34  subdivisions 8 and 9, and 124D.69, subdivision 1, a district 
 71.35  shall receive additional revenue for homeless pupils who are 
 71.36  eligible to participate in the graduation incentives program 
 72.1   according to section 124D.68, subdivision 1, paragraph (a), 
 72.2   clause (9), equal to $100 per pupil unit.  The additional 
 72.3   revenue received must be based on the district's number of 
 72.4   homeless students enrolled on October 1.  The revenue received 
 72.5   under this section shall be used for expanding education 
 72.6   services to include preschool, after-school, or summer school 
 72.7   programs to provide transition and follow-up services to 
 72.8   homeless pupils who are placed or mainstreamed in a district 
 72.9   school, or to provide parent education and support services.  
 72.10  The additional revenue shall be paid to the public or nonprofit 
 72.11  school program providing services to homeless pupils.  A student 
 72.12  shall not be considered homeless under this section if the 
 72.13  student was displaced from home as a result of a natural 
 72.14  disaster. 
 72.15     Sec. 15.  [124D.701] [CARE AND TREATMENT INSTRUCTIONAL 
 72.16  AID.] 
 72.17     The state must pay each district up to 50 percent of the 
 72.18  nonreimbursed instructional expenses incurred when a nondisabled 
 72.19  child has been placed in a care and treatment facility, or 
 72.20  detention facility, according to section 125A.51.  In order to 
 72.21  receive reimbursement according to this section, the facility 
 72.22  must provide an education program, which has been approved by 
 72.23  the commissioner according to section 125A.515. 
 72.24     In a form and manner determined by the commissioner, the 
 72.25  district may bill the state no more than 50 percent of the 
 72.26  allowable expenses incurred in providing the services minus the 
 72.27  general education revenue of the district for the child and any 
 72.28  other aid earned on behalf of the child.  In accordance with 
 72.29  section 125A.80, the commissioner shall determine allowable 
 72.30  expenses and maximum reimbursable rates for each type of service.
 72.31     <i>(Effective Date:  Section 15 (124D.701) is effective July</i> 
 72.32  <i>1, 2000.)</i> 
 72.33     Sec. 16.  Minnesota Statutes 1998, section 125A.023, is 
 72.34  amended to read: 
 72.35     125A.023 [COORDINATED INTERAGENCY SERVICES.] 
 72.36     Subdivision 1.  [CITATION.] This section and section 
 73.1   125A.027 shall be cited as the "Interagency Services for 
 73.2   Children with Disabilities Act." 
 73.3      Subd. 2.  [PURPOSE.] It is the policy of the state to 
 73.4   develop and implement a coordinated, multidisciplinary, 
 73.5   interagency intervention service system for children ages three 
 73.6   to 22 21 with disabilities. 
 73.7      Subd. 3.  [DEFINITIONS.] For purposes of this section and 
 73.8   section 125A.027, the following terms have the meanings given 
 73.9   them: 
 73.10     (a) "Health plan" means: 
 73.11     (1) a health plan under section 62Q.01, subdivision 3; 
 73.12     (2) a county-based purchasing plan under section 256B.692; 
 73.13     (3) a self-insured health plan established by a local 
 73.14  government under section 471.617; or 
 73.15     (4) self-insured health coverage provided by the state to 
 73.16  its employees or retirees. 
 73.17     (b) For purposes of this section, "health plan company" 
 73.18  means an entity that issues a health plan as defined in 
 73.19  paragraph (a). 
 73.20     (c) "Individual interagency intervention plan" means a 
 73.21  standardized written plan describing those programs or services 
 73.22  and the accompanying funding sources available to eligible 
 73.23  children with disabilities. 
 73.24     (d) "Interagency intervention service system" means a 
 73.25  system that coordinates services and programs required in state 
 73.26  and federal law to meet the needs of eligible children with 
 73.27  disabilities ages three to 22 21, including: 
 73.28     (1) services provided under the following programs or 
 73.29  initiatives administered by state or local agencies: 
 73.30     (i) the maternal and child health program under title V of 
 73.31  the Social Security Act, United States Code, title 42, sections 
 73.32  701 to 709; 
 73.33     (ii) the Individuals with Disabilities Education Act under 
 73.34  United States Code, title 20, chapter 33, subchapter II, 
 73.35  sections 1411 to 1420; 
 73.36     (iii) medical assistance under the Social Security Act, 
 74.1   United States Code, title 42, chapter 7, subchapter XIX, section 
 74.2   1396, et seq.; 
 74.3      (iv) the Developmental Disabilities Assistance and Bill of 
 74.4   Rights Act, United States Code, title 42, chapter 75, subchapter 
 74.5   II, sections 6021 to 6030, Part B; 
 74.6      (v) the Head Start Act, United States Code, title 42, 
 74.7   chapter 105, subchapter II, sections 9831 to 9852; 
 74.8      (vi) rehabilitation services provided under chapter 268A; 
 74.9      (vii) Juvenile Court Act services provided under sections 
 74.10  260.011 to 260.301; 
 74.11     (viii) the children's mental health collaboratives under 
 74.12  section 245.493; 
 74.13     (ix) the family service collaboratives under section 
 74.14  124D.23; 
 74.15     (x) the family community support plan under section 
 74.16  245.4881, subdivision 4; 
 74.17     (xi) the MinnesotaCare program under chapter 256L; 
 74.18     (xii) the community health services grants under chapter 
 74.19  145; 
 74.20     (xiii) the Community Social Services Act funding under the 
 74.21  Social Security Act, United States Code, title 42, sections 1397 
 74.22  to 1397f; and 
 74.23     (xiv) the community interagency transition committees under 
 74.24  section 125A.22; 
 74.25     (2) services provided under a health plan in conformity 
 74.26  with an individual family service plan or an individual 
 74.27  education plan; and 
 74.28     (3) additional appropriate services that local agencies and 
 74.29  counties provide on an individual need basis upon determining 
 74.30  eligibility and receiving a request from the interagency early 
 74.31  intervention committee and the child's parent. 
 74.32     (e) "Children with disabilities" has the meaning given in 
 74.33  section 125A.02. 
 74.34     (f) A "standardized written plan" means those individual 
 74.35  services or programs available through the interagency 
 74.36  intervention service system to an eligible child other than the 
 75.1   services or programs described in the child's individual 
 75.2   education plan or the child's individual family service plan. 
 75.3      Subd. 4.  [STATE INTERAGENCY COMMITTEE.] (a) The governor 
 75.4   shall convene an 18-member interagency committee to develop and 
 75.5   implement a coordinated, multidisciplinary, interagency 
 75.6   intervention service system for children ages three to 22 21 
 75.7   with disabilities.  The commissioners of commerce, children, 
 75.8   families, and learning, health, human rights, human services, 
 75.9   economic security, and corrections shall each appoint two 
 75.10  committee members from their departments; the association of 
 75.11  Minnesota counties shall appoint two county representatives, one 
 75.12  of whom must be an elected official, as committee members; and 
 75.13  the Minnesota school boards association and the school nurse 
 75.14  association of Minnesota shall each appoint one committee 
 75.15  member.  The committee shall select a chair from among its 
 75.16  members. 
 75.17     (b) The committee shall: 
 75.18     (1) identify and assist in removing state and federal 
 75.19  barriers to local coordination of services provided to children 
 75.20  with disabilities; 
 75.21     (2) identify adequate, equitable, and flexible funding 
 75.22  sources to streamline these services; 
 75.23     (3) develop guidelines for implementing policies that 
 75.24  ensure a comprehensive and coordinated system of all state and 
 75.25  local agency services, including multidisciplinary assessment 
 75.26  practices for children with disabilities ages three to 22 21; 
 75.27     (4) develop, consistent with federal law, a standardized 
 75.28  written plan for providing services to a child with 
 75.29  disabilities; 
 75.30     (5) identify how current systems for dispute resolution can 
 75.31  be coordinated and develop guidelines for that coordination; 
 75.32     (6) develop an evaluation process to measure the success of 
 75.33  state and local interagency efforts in improving the quality and 
 75.34  coordination of services to children with disabilities ages 
 75.35  three to 22 21; 
 75.36     (7) develop guidelines to assist the governing boards of 
 76.1   the interagency early intervention committees in carrying out 
 76.2   the duties assigned in section 125A.027, subdivision 1, 
 76.3   paragraph (b); and 
 76.4      (8) carry out other duties necessary to develop and 
 76.5   implement within communities a coordinated, multidisciplinary, 
 76.6   interagency intervention service system for children with 
 76.7   disabilities. 
 76.8      (c) The committee shall consult on an ongoing basis with 
 76.9   the state education advisory committee for special education and 
 76.10  the governor's interagency coordinating council in carrying out 
 76.11  its duties under this section, including assisting the governing 
 76.12  boards of the interagency early intervention committees. 
 76.13     Subd. 5.  [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 
 76.14  commissioner of children, families, and learning, based on 
 76.15  recommendations from the state interagency committee, shall 
 76.16  issue a request for proposals by January 1, 1999, for grants to 
 76.17  the governing boards of interagency intervention committees 
 76.18  under section 125A.027 or a combination of one or more counties 
 76.19  and school districts to establish five voluntary interagency 
 76.20  intervention demonstration projects.  One grant shall be used to 
 76.21  implement a coordinated service system for all eligible children 
 76.22  with disabilities up to age five who received services under 
 76.23  sections 125A.26 to 125A.48.  One grant shall be used to 
 76.24  implement a coordinated service system for a population of 
 76.25  minority children with disabilities from ages 12 to 22 21, who 
 76.26  may have behavioral problems and are in need of transitional 
 76.27  services.  Each project must be operational by July 1, 1999.  
 76.28  The governing boards of the interagency early intervention 
 76.29  committees and the counties and school districts receiving 
 76.30  project grants must develop efficient ways to coordinate 
 76.31  services and funding for children with disabilities ages three 
 76.32  to 22 21, consistent with the requirements of this section and 
 76.33  section 125A.027 and the guidelines developed by the state 
 76.34  interagency committee under this section. 
 76.35     (b) The state interagency committee shall evaluate the 
 76.36  demonstration projects and provide the evaluation results to 
 77.1   interagency early intervention committees. 
 77.2      Subd. 6.  [THIRD-PARTY LIABILITY.] Nothing in this section 
 77.3   and section 125A.027 relieves a health plan company, third party 
 77.4   administrator or other third-party payer of an obligation to pay 
 77.5   for, or changes the validity of an obligation to pay for, 
 77.6   services provided to children with disabilities ages three to 22 
 77.7   21 and their families. 
 77.8      Subd. 7.  [AGENCY OBLIGATION.] Nothing in this section and 
 77.9   section 125A.027 removes the obligation of the state, counties, 
 77.10  local school districts, a regional agency, or a local agency or 
 77.11  organization to comply with any federal or state law that 
 77.12  mandates responsibility for finding, assessing, delivering, 
 77.13  assuring, or paying for education or related services for 
 77.14  children with disabilities and their families. 
 77.15     <i>(Effective date:  Section 16 (125A.023) is effective July</i> 
 77.16  <i>1, 2000.)</i> 
 77.17     Sec. 17.  Minnesota Statutes 1998, section 125A.027, is 
 77.18  amended to read: 
 77.19     125A.027 [INTERAGENCY EARLY INTERVENTION COMMITTEE 
 77.20  RESPONSIBILITIES.] 
 77.21     Subdivision 1.  [ADDITIONAL DUTIES.] (a) The governing 
 77.22  boards of the interagency early intervention committees are 
 77.23  responsible for developing and implementing interagency policies 
 77.24  and procedures to coordinate services at the local level for 
 77.25  children with disabilities ages three to 22 21 under guidelines 
 77.26  established by the state interagency committee under section 
 77.27  125A.023, subdivision 4.  Consistent with the requirements in 
 77.28  this section and section 125A.023, the governing boards of the 
 77.29  interagency early intervention committees shall organize as a 
 77.30  joint powers board under section 471.59 or enter into an 
 77.31  interagency agreement that establishes a governance structure. 
 77.32     (b) The governing board of each interagency early 
 77.33  intervention committee as defined in section 125A.30, paragraph 
 77.34  (a), which may include a juvenile justice professional, shall: 
 77.35     (1) identify and assist in removing state and federal 
 77.36  barriers to local coordination of services provided to children 
 78.1   with disabilities; 
 78.2      (2) identify adequate, equitable, and flexible use of 
 78.3   funding by local agencies for these services; 
 78.4      (3) implement policies that ensure a comprehensive and 
 78.5   coordinated system of all state and local agency services, 
 78.6   including multidisciplinary assessment practices, for children 
 78.7   with disabilities ages three to 22 21; 
 78.8      (4) use a standardized written plan for providing services 
 78.9   to a child with disabilities developed under section 125A.023; 
 78.10     (5) access the coordinated dispute resolution system and 
 78.11  incorporate the guidelines for coordinating services at the 
 78.12  local level, consistent with section 125A.023; 
 78.13     (6) use the evaluation process to measure the success of 
 78.14  the local interagency effort in improving the quality and 
 78.15  coordination of services to children with disabilities ages 
 78.16  three to 22 21 consistent with section 125A.023; 
 78.17     (7) develop a transitional plan for children moving from 
 78.18  the interagency early childhood intervention system under 
 78.19  sections 125A.259 to 125A.48 into the interagency intervention 
 78.20  service system under this section; 
 78.21     (8) coordinate services and facilitate payment for services 
 78.22  from public and private institutions, agencies, and health plan 
 78.23  companies; and 
 78.24     (9) share needed information consistent with state and 
 78.25  federal data practices requirements. 
 78.26     Subd. 2.  [APPROPRIATE AND NECESSARY SERVICES.] (a) 
 78.27  Parents, physicians, other health care professionals including 
 78.28  school nurses, and education and human services providers 
 78.29  jointly must determine appropriate and necessary services for 
 78.30  eligible children with disabilities ages three to 22 21.  The 
 78.31  services provided to the child under this section must conform 
 78.32  with the child's standardized written plan.  The governing board 
 78.33  of an interagency early intervention committee must provide 
 78.34  those services contained in a child's individual education plan 
 78.35  and those services for which a legal obligation exists. 
 78.36     (b) Nothing in this section or section 125A.023 increases 
 79.1   or decreases the obligation of the state, county, regional 
 79.2   agency, local school district, or local agency or organization 
 79.3   to pay for education, health care, or social services.  
 79.4      (c) A health plan may not exclude any medically necessary 
 79.5   covered service solely because the service is or could be 
 79.6   identified in a child's individual family service plan, 
 79.7   individual education plan, a plan established under section 504 
 79.8   of the federal Rehabilitation Act of 1973, or a student's 
 79.9   individual health plan.  This paragraph reaffirms the obligation 
 79.10  of a health plan company to provide or pay for certain medically 
 79.11  necessary covered services, and encourages a health plan company 
 79.12  to coordinate this care with any other providers of similar 
 79.13  services.  Also, a health plan company may not exclude from a 
 79.14  health plan any medically necessary covered service such as an 
 79.15  assessment or physical examination solely because the resulting 
 79.16  information may be used for an individual education plan or a 
 79.17  standardized written plan. 
 79.18     Subd. 3.  [IMPLEMENTATION TIMELINE.] By July 1, 2000, all 
 79.19  governing boards of interagency early intervention committees 
 79.20  statewide must implement a coordinated service system for 
 79.21  children up to age five with disabilities consistent with the 
 79.22  requirements of this section and section 125A.023 and the 
 79.23  evaluation results from the demonstration projects under section 
 79.24  125A.023, subdivision 5.  Children with disabilities up to the 
 79.25  age of 22 21 shall be eligible for coordinated services and 
 79.26  their eligibility to receive such services under this section 
 79.27  shall be phased in over a four-year period as follows: 
 79.28     (1) July 1, 2001, children up to age nine become eligible; 
 79.29     (2) July 1, 2002, children up to age 14 become eligible; 
 79.30  and 
 79.31     (3) July 1, 2003, children up to age 22 21 become eligible. 
 79.32     <i>(Effective date:  Section 17 (125A.027) is effective July</i> 
 79.33  <i>1, 2001.)</i> 
 79.34     Sec. 18.  Minnesota Statutes 1998, section 125A.03, is 
 79.35  amended to read: 
 79.36     125A.03 [SPECIAL INSTRUCTION FOR CHILDREN WITH A 
 80.1   DISABILITY.] 
 80.2      (a) As defined in paragraph (b), to the extent required in 
 80.3   federal law as of July 1, 1999, every district must provide 
 80.4   special instruction and services, either within the district or 
 80.5   in another district, for children with a disability who are 
 80.6   residents of the district and who are disabled as set forth in 
 80.7   section 125A.02. 
 80.8      (b) Notwithstanding any age limits in laws to the contrary, 
 80.9   special instruction and services must be provided from birth 
 80.10  until September July 1 after the child with a disability becomes 
 80.11  22 21 years old but shall not extend beyond secondary school or 
 80.12  its equivalent, except as provided in section 124D.68, 
 80.13  subdivision 2.  Local health, education, and social service 
 80.14  agencies must refer children under age five who are known to 
 80.15  need or suspected of needing special instruction and services to 
 80.16  the school district.  Districts with less than the minimum 
 80.17  number of eligible children with a disability as determined by 
 80.18  the state board must cooperate with other districts to maintain 
 80.19  a full range of programs for education and services for children 
 80.20  with a disability.  This section does not alter the compulsory 
 80.21  attendance requirements of section 120A.22. 
 80.22     <i>(Effective date:  Section 18, paragraph (b) (125A.03) is</i> 
 80.23  <i>effective July 1, 2002.)</i> 
 80.24     Sec. 19.  Minnesota Statutes 1998, section 125A.07, is 
 80.25  amended to read: 
 80.26     125A.07 [RULES OF STATE BOARD.] 
 80.27     (a) As defined in this paragraph, but not to exceed the 
 80.28  extent required by federal law as of July 1, 1999, the state 
 80.29  board must adopt rules relative to qualifications of essential 
 80.30  personnel, courses of study, methods of instruction, pupil 
 80.31  eligibility, size of classes, rooms, equipment, supervision, 
 80.32  parent consultation, and other necessary rules for instruction 
 80.33  of children with a disability.  These rules must provide 
 80.34  standards and procedures appropriate for the implementation of 
 80.35  and within the limitations of sections 125A.08 and 125A.09.  
 80.36  These rules must also provide standards for the discipline, 
 81.1   control, management, and protection of children with a 
 81.2   disability.  The state board must not adopt rules for pupils 
 81.3   served primarily in the regular classroom establishing either 
 81.4   case loads or the maximum number of pupils that may be assigned 
 81.5   to special education teachers.  The state board, in consultation 
 81.6   with the departments of health and human services, must adopt 
 81.7   permanent rules for instruction and services for children under 
 81.8   age five and their families.  These rules are binding on state 
 81.9   and local education, health, and human services agencies.  The 
 81.10  state board must adopt rules to determine eligibility for 
 81.11  special education services.  The rules must include procedures 
 81.12  and standards by which to grant variances for experimental 
 81.13  eligibility criteria.  The state board must, according to 
 81.14  section 14.05, subdivision 4, notify a district applying for a 
 81.15  variance from the rules within 45 calendar days of receiving the 
 81.16  request whether the request for the variance has been granted or 
 81.17  denied.  If a request is denied, the board must specify the 
 81.18  program standards used to evaluate the request and the reasons 
 81.19  for denying the request.  
 81.20     (b) As provided in this paragraph, but not to exceed the 
 81.21  extent required by federal law as of July 1, 1999, the state's 
 81.22  regulatory scheme should support schools by assuring that all 
 81.23  state special education rules adopted by the state board result 
 81.24  in one or more of the following outcomes: 
 81.25     (1) increased time available to teachers and, where 
 81.26  appropriate, to support staff including school nurses for 
 81.27  educating students through direct and indirect instruction; 
 81.28     (2) consistent and uniform access to effective education 
 81.29  programs for students with disabilities throughout the state; 
 81.30     (3) reduced inequalities and conflict, appropriate due 
 81.31  process hearing procedures and reduced court actions related to 
 81.32  the delivery of special education instruction and services for 
 81.33  students with disabilities; 
 81.34     (4) clear expectations for service providers and for 
 81.35  students with disabilities; 
 81.36     (5) increased accountability for all individuals and 
 82.1   agencies that provide instruction and other services to students 
 82.2   with disabilities; 
 82.3      (6) greater focus for the state and local resources 
 82.4   dedicated to educating students with disabilities; and 
 82.5      (7) clearer standards for evaluating the effectiveness of 
 82.6   education and support services for students with disabilities. 
 82.7      Sec. 20.  Minnesota Statutes 1998, section 125A.08, is 
 82.8   amended to read: 
 82.9      125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 
 82.10     (a) As defined in this section, to the extent required by 
 82.11  federal law as of July 1, 1999, every district must ensure the 
 82.12  following: 
 82.13     (1) all students with disabilities are provided the special 
 82.14  instruction and services which are appropriate to their needs.  
 82.15  Where the individual education plan team has determined 
 82.16  appropriate goals and objectives based on the student's needs, 
 82.17  including the extent to which the student can be included in the 
 82.18  least restrictive environment, and where there are essentially 
 82.19  equivalent and effective instruction, related services, or 
 82.20  assistive technology devices available to meet the student's 
 82.21  needs, cost to the district may be among the factors considered 
 82.22  by the team in choosing how to provide the appropriate services, 
 82.23  instruction, or devices that are to be made part of the 
 82.24  student's individual education plan.  The student's needs and 
 82.25  the special education instruction and services to be provided 
 82.26  must be agreed upon through the development of an individual 
 82.27  education plan.  The plan must address the student's need to 
 82.28  develop skills to live and work as independently as possible 
 82.29  within the community.  By grade 9 or age 14, the plan must 
 82.30  address the student's needs for transition from secondary 
 82.31  services to post-secondary education and training, employment, 
 82.32  community participation, recreation, and leisure and home 
 82.33  living.  In developing the plan, districts must inform parents 
 82.34  of the full range of transitional goals and related services 
 82.35  that should be considered.  The plan must include a statement of 
 82.36  the needed transition services, including a statement of the 
 83.1   interagency responsibilities or linkages or both before 
 83.2   secondary services are concluded; 
 83.3      (2) children with a disability under age five and their 
 83.4   families are provided special instruction and services 
 83.5   appropriate to the child's level of functioning and needs; 
 83.6      (3) children with a disability and their parents or 
 83.7   guardians are guaranteed procedural safeguards and the right to 
 83.8   participate in decisions involving identification, assessment 
 83.9   including assistive technology assessment, and educational 
 83.10  placement of children with a disability; 
 83.11     (4) eligibility and needs of children with a disability are 
 83.12  determined by an initial assessment or reassessment, which may 
 83.13  be completed using existing data under United States Code, title 
 83.14  20, section 33, et seq.; 
 83.15     (5) to the maximum extent appropriate, children with a 
 83.16  disability, including those in public or private institutions or 
 83.17  other care facilities, are educated with children who are not 
 83.18  disabled, and that special classes, separate schooling, or other 
 83.19  removal of children with a disability from the regular 
 83.20  educational environment occurs only when and to the extent that 
 83.21  the nature or severity of the disability is such that education 
 83.22  in regular classes with the use of supplementary services cannot 
 83.23  be achieved satisfactorily; 
 83.24     (6) in accordance with recognized professional standards, 
 83.25  testing and evaluation materials, and procedures used for the 
 83.26  purposes of classification and placement of children with a 
 83.27  disability are selected and administered so as not to be 
 83.28  racially or culturally discriminatory; and 
 83.29     (7) the rights of the child are protected when the parents 
 83.30  or guardians are not known or not available, or the child is a 
 83.31  ward of the state. 
 83.32     (b) For paraprofessionals employed to work in programs for 
 83.33  students with disabilities, the school board in each district 
 83.34  shall ensure that: 
 83.35     (1) before or immediately upon employment, each 
 83.36  paraprofessional develops sufficient knowledge and skills in 
 84.1   emergency procedures, building orientation, roles and 
 84.2   responsibilities, confidentiality, vulnerability, and 
 84.3   reportability, among other things, to begin meeting the needs of 
 84.4   the students with whom the paraprofessional works; 
 84.5      (2) annual training opportunities are available to enable 
 84.6   the paraprofessional to continue to further develop the 
 84.7   knowledge and skills that are specific to the students with whom 
 84.8   the paraprofessional works, including understanding 
 84.9   disabilities, following lesson plans, and implementing follow-up 
 84.10  instructional procedures and activities; and 
 84.11     (3) a districtwide process obligates each paraprofessional 
 84.12  to work under the ongoing direction of a licensed teacher and, 
 84.13  where appropriate and possible, the supervision of a school 
 84.14  nurse. 
 84.15     Sec. 21.  Minnesota Statutes 1998, section 125A.09, 
 84.16  subdivision 1, is amended to read: 
 84.17     Subdivision 1.  [DISTRICT OBLIGATION.] As defined in this 
 84.18  section, but not to exceed the extent required by federal law as 
 84.19  of July 1, 1999, every district must use the following 
 84.20  procedures for decisions involving identification, assessment, 
 84.21  and educational placement of children with a disability. 
 84.22     Sec. 22.  Minnesota Statutes 1998, section 125A.09, 
 84.23  subdivision 4, is amended to read: 
 84.24     Subd. 4.  [DISPUTE RESOLUTION.] Parents and guardians must 
 84.25  have an opportunity to meet with appropriate district staff in 
 84.26  at least one conciliation conference, mediation, or other method 
 84.27  of alternative dispute resolution that the parties agree to, if 
 84.28  they object to any proposal of which they are notified under 
 84.29  subdivision 1.  The state intends to encourage parties to 
 84.30  resolve disputes through mediation or other form of alternative 
 84.31  dispute resolution.  A school district and a parent or guardian 
 84.32  must participate in mediation using mediation services 
 84.33  acceptable to both parties, unless a party objects to the 
 84.34  mediation.  Mediation shall remain available to the parties 
 84.35  until a party objects to the mediation, or the mediator 
 84.36  determines that further efforts to mediate a dispute are not 
 85.1   warranted.  All mediation is subject to the confidentiality 
 85.2   requirements under rule 114.08 of the general rules of practice 
 85.3   for the district courts.  Alternative dispute resolution must 
 85.4   not be used to deny or delay a parent or guardian's right to a 
 85.5   due process hearing.  If the parent or guardian refuses efforts 
 85.6   by the district to conciliate the dispute with the district, the 
 85.7   requirement of an opportunity for conciliation or other 
 85.8   alternative dispute resolution must be deemed to be satisfied.  
 85.9   Notwithstanding other law, in any proceeding following a 
 85.10  conciliation conference, the district must not offer a 
 85.11  conciliation conference memorandum into evidence, except for any 
 85.12  portions that describe the district's final proposed offer of 
 85.13  service.  Otherwise, with respect to forms of dispute 
 85.14  resolution, mediation, or conciliation, Minnesota Rule of 
 85.15  Evidence 408 applies.  The department may reimburse the 
 85.16  districts or directly pay the costs of lay advocates, not to 
 85.17  exceed $150 per dispute, used in conjunction with alternative 
 85.18  dispute resolution.  
 85.19     Sec. 23.  Minnesota Statutes 1998, section 125A.09, 
 85.20  subdivision 6, is amended to read: 
 85.21     Subd. 6.  [IMPARTIAL DUE PROCESS HEARING.] Parents, 
 85.22  guardians, and the district must have an opportunity to obtain 
 85.23  an impartial due process hearing initiated and conducted by and 
 85.24  in the district responsible for assuring that an appropriate 
 85.25  program is provided in accordance with state board rules, if the 
 85.26  parent or guardian continues to object to:  
 85.27     (1) a proposed formal educational assessment or proposed 
 85.28  denial of a formal educational assessment of their child; 
 85.29     (2) the proposed placement of their child in, or transfer 
 85.30  of their child to a special education program; 
 85.31     (3) the proposed denial of placement of their child in a 
 85.32  special education program or the transfer of their child from a 
 85.33  special education program; 
 85.34     (4) the proposed provision or addition of special education 
 85.35  services for their child; or 
 85.36     (5) the proposed denial or removal of special education 
 86.1   services for their child.  
 86.2      A hearing officer may limit an impartial due process 
 86.3   hearing to an amount of time sufficient for each party to 
 86.4   present its case.  The party requesting the hearing shall plead 
 86.5   with specificity as to what issues are in dispute and all issues 
 86.6   not pleaded with specificity are deemed waived.  Parties must 
 86.7   limit evidence to the issues specifically pleaded.  A hearing 
 86.8   officer, at the officer's discretion, may exclude cumulative 
 86.9   evidence or may encourage parties to present only essential 
 86.10  witnesses. 
 86.11     Within five business days after the request for a hearing, 
 86.12  or as directed by the hearing officer, the objecting party must 
 86.13  provide the other party with a brief written statement of 
 86.14  particulars of the objection, the reasons for the objection, and 
 86.15  the specific remedies sought.  The other party shall provide the 
 86.16  objecting party with a written response to the statement of 
 86.17  objections within five business days of receipt of the statement.
 86.18     The hearing must take place before an impartial hearing 
 86.19  officer mutually agreed to by the school board and the parent or 
 86.20  guardian.  Within four three business days of the receipt of the 
 86.21  request for the hearing, if the parties have not agreed on the 
 86.22  hearing officer, the board must request the commissioner to 
 86.23  appoint a hearing officer from a list maintained for that 
 86.24  purpose.  If the parties have not agreed upon a hearing officer, 
 86.25  and the board has not requested that a hearing officer be 
 86.26  appointed by the commissioner within four business days after 
 86.27  the receipt of the request, the commissioner shall appoint a 
 86.28  hearing officer upon the request of either party.  A retired 
 86.29  judge, retired court referee, or retired federal magistrate 
 86.30  judge who is otherwise qualified under this section and wishes 
 86.31  to be a hearing officer may be put on the list.  The board must 
 86.32  include with the request the name of the person requesting the 
 86.33  hearing, the name of the student, the attorneys involved, if 
 86.34  any, and the date the hearing request was received.  The hearing 
 86.35  officer must not be a board member or employee of the district 
 86.36  where the child resides or of the child's district of residence, 
 87.1   an employee of any other public agency involved in the education 
 87.2   or care of the child, or any person with a personal or 
 87.3   professional interest that would conflict with the person's 
 87.4   objectivity at the hearing.  A person who otherwise qualifies as 
 87.5   a hearing officer is not an employee of the district solely 
 87.6   because the person is paid by the district to serve as a hearing 
 87.7   officer.  Any party to a hearing, except an expedited hearing 
 87.8   under federal law, may make and serve upon the opposing party 
 87.9   and the commissioner a notice to remove a hearing officer 
 87.10  appointed by the commissioner.  The notice shall be served and 
 87.11  filed within two business days after the party receives notice 
 87.12  of the appointment of the hearing officer by the commissioner. 
 87.13     No such notice may be filed by a party against a hearing 
 87.14  officer who has presided at a motion or any other proceeding of 
 87.15  which the party had notice.  A hearing officer who has presided 
 87.16  at a motion or other proceeding may not be removed except upon 
 87.17  an affirmative showing of prejudice on the part of the hearing 
 87.18  officer.  
 87.19     After the party has once disqualified a hearing officer as 
 87.20  a matter of right, that party may disqualify the substitute 
 87.21  hearing officer only by making an affirmative showing of 
 87.22  prejudice or bias to the commissioner, or to the chief 
 87.23  administrative law judge if the hearing officer is an 
 87.24  administrative law judge. 
 87.25     Upon the filing of a notice to remove or if a party makes 
 87.26  an affirmative showing of prejudice against a substitute hearing 
 87.27  officer, the commissioner shall assign any other hearing officer 
 87.28  to hear the matter. 
 87.29     If the hearing officer requests an independent educational 
 87.30  assessment of a child, the cost of the assessment must be at 
 87.31  district expense.  The proceedings must be recorded and 
 87.32  preserved, at the expense of the school district, pending 
 87.33  ultimate disposition of the action. 
 87.34     Sec. 24.  Minnesota Statutes 1998, section 125A.10, is 
 87.35  amended to read: 
 87.36     125A.10 [COORDINATING INTERAGENCY SERVICES.] 
 88.1      If at the time of initial referral for an educational 
 88.2   assessment, or a reassessment, the district determines that a 
 88.3   child with disabilities who is age 3 through 21 may be eligible 
 88.4   for interagency services, the district may request that the 
 88.5   county of residence provide a representative to the initial 
 88.6   assessment or reassessment team meeting or the first individual 
 88.7   education plan team meeting following the assessment or 
 88.8   reassessment.  The district may request to have a county 
 88.9   representative attend other individual education plan team 
 88.10  meetings when it is necessary to facilitate coordination between 
 88.11  district and county provided services.  Upon request from a 
 88.12  district, the resident county shall provide a representative to 
 88.13  assist the individual education plan team in determining the 
 88.14  child's eligibility for existing health, mental health, or other 
 88.15  support services administered or provided by the county.  The 
 88.16  individual education plan team and the county representative 
 88.17  must develop an interagency plan of care for an eligible child 
 88.18  and the child's family to coordinate services required under the 
 88.19  child's individual education plan with county services.  The 
 88.20  interagency plan of care must include appropriate family 
 88.21  information with the consent of the family, a description of how 
 88.22  services will be coordinated between the district and county, a 
 88.23  description of service coordinator responsibilities and 
 88.24  services, and a description of activities for obtaining 
 88.25  third-party payment for eligible services, including medical 
 88.26  assistance payments.  Any state, county, or city government 
 88.27  agency responsible for providing services or resources to 
 88.28  students with disabilities under this section is subject to the 
 88.29  same dispute resolution systems as local school districts, and 
 88.30  all such agencies must comply with corrective action 
 88.31  requirements that ensue from these systems. 
 88.32     Sec. 25.  Minnesota Statutes 1998, section 125A.15, is 
 88.33  amended to read: 
 88.34     125A.15 [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 
 88.35     The responsibility for special instruction and services for 
 88.36  a child with a disability temporarily placed in another district 
 89.1   for care and treatment shall be determined in the following 
 89.2   manner: 
 89.3      (a) The district of residence of a child shall be the 
 89.4   district in which the child's parent resides, if living, or the 
 89.5   child's guardian, or the district designated by the commissioner 
 89.6   if neither parent nor guardian is living within the state. 
 89.7      (b) When a child is temporarily placed for care and 
 89.8   treatment in a day program located in another district and the 
 89.9   child continues to live within the district of residence during 
 89.10  the care and treatment, the district of residence is responsible 
 89.11  for providing transportation to and from the care and treatment 
 89.12  facility and an appropriate educational program for the 
 89.13  child.  Transportation shall only be provided by the district 
 89.14  during regular operating hours of the district.  The district 
 89.15  may provide the educational program at a school within the 
 89.16  district of residence, at the child's residence, or in the 
 89.17  district in which the day treatment center is located by paying 
 89.18  tuition to that district. 
 89.19     (c) When a child is temporarily placed in a residential 
 89.20  program for care and treatment, the nonresident district in 
 89.21  which the child is placed is responsible for providing an 
 89.22  appropriate educational program for the child and necessary 
 89.23  transportation while the child is attending the educational 
 89.24  program; and must bill the district of the child's residence for 
 89.25  the actual cost of providing the program, as outlined in section 
 89.26  125A.11.  However, the board, lodging, and treatment costs 
 89.27  incurred in behalf of a child with a disability placed outside 
 89.28  of the school district of residence by the commissioner of human 
 89.29  services or the commissioner of corrections or their agents, for 
 89.30  reasons other than providing for the child's special educational 
 89.31  needs must not become the responsibility of either the district 
 89.32  providing the instruction or the district of the child's 
 89.33  residence.  For the purposes of this section, the state 
 89.34  correctional facilities operated on a fee-for-service basis are 
 89.35  considered to be residential programs for care and treatment. 
 89.36     (d) The district of residence shall pay tuition and other 
 90.1   program costs, not including transportation costs, to the 
 90.2   district providing the instruction and services.  The district 
 90.3   of residence may claim general education aid for the child as 
 90.4   provided by law.  Transportation costs must be paid by the 
 90.5   district responsible for providing the transportation and the 
 90.6   state must pay transportation aid to that district. 
 90.7      Sec. 26.  [125A.155] [SPECIAL EDUCATION RECIPROCITY; 
 90.8   COMMISSIONER DUTIES.] 
 90.9      The commissioner of children, families, and learning must 
 90.10  develop a special education reciprocity agreement form.  The 
 90.11  reciprocity form must specify the procedures used to calculate 
 90.12  special education tuition charges for both Minnesota students 
 90.13  that are served in other states and for out-of-state students 
 90.14  who are served in Minnesota.  The commissioner shall attempt to 
 90.15  enter into reciprocity agreements with any state that sends 
 90.16  students to Minnesota and any state that provides services to 
 90.17  Minnesota students. 
 90.18     Sec. 27.  Minnesota Statutes 1998, section 125A.18, is 
 90.19  amended to read: 
 90.20     125A.18 [SPECIAL INSTRUCTION; NONPUBLIC SCHOOLS.] 
 90.21     No resident of a district who is eligible for special 
 90.22  instruction and services under this section may be denied 
 90.23  instruction and service on a shared time basis consistent with 
 90.24  section 126C.19, subdivision 4, because of attending a nonpublic 
 90.25  school defined in section 123B.41, subdivision 9.  If a resident 
 90.26  pupil with a disability attends a nonpublic school located 
 90.27  within the district of residence, the district must provide 
 90.28  necessary transportation for that pupil within the district 
 90.29  between the nonpublic school and the educational facility where 
 90.30  special instruction and services are provided on a shared time 
 90.31  basis.  If a resident pupil with a disability attends a 
 90.32  nonpublic school located in another district and if no agreement 
 90.33  exists under section 126C.19, subdivision 1 or 2, for providing 
 90.34  special instruction and services on a shared time basis to that 
 90.35  pupil by the district of attendance and where the special 
 90.36  instruction and services are provided within the district of 
 91.1   residence, the district of residence must provide necessary 
 91.2   transportation for that pupil between the boundary of the 
 91.3   district of residence and the educational facility.  The 
 91.4   district of residence may provide necessary transportation for 
 91.5   that pupil between its boundary and the nonpublic school 
 91.6   attended, but the nonpublic school must pay the cost of 
 91.7   transportation provided outside the district boundary.  
 91.8      Parties serving students on a shared time basis have access 
 91.9   to due process hearing system described under United States 
 91.10  Code, title 20, and the complaint system under Code of Federal 
 91.11  Regulations, title 34, section 300.660-662.  In the event it is 
 91.12  determined under these systems that the nonpublic school or 
 91.13  staff impeded the public school district's provision of a free 
 91.14  appropriate education, the commissioner may withhold public 
 91.15  funds available to the nonpublic school proportionally 
 91.16  applicable to that student under section 123B.42. 
 91.17     Sec. 28.  Minnesota Statutes 1998, section 125A.21, 
 91.18  subdivision 2, is amended to read: 
 91.19     Subd. 2.  [THIRD PARTY REIMBURSEMENT.] Beginning July 
 91.20  1, 1999 2000, districts shall seek reimbursement from insurers 
 91.21  and similar third parties for the cost of services provided by 
 91.22  the district whenever the services provided by the district are 
 91.23  otherwise covered by the child's health coverage.  Districts 
 91.24  shall request, but may not require, the child's family to 
 91.25  provide information about the child's health coverage when a 
 91.26  child with a disability begins to receive services from the 
 91.27  district of a type that may be reimbursable, and shall request, 
 91.28  but may not require, updated information after that as needed.  
 91.29  Districts shall request, but may not require, the child's parent 
 91.30  or legal representative to sign a consent form, permitting the 
 91.31  school district to apply for and receive reimbursement directly 
 91.32  from the insurer or other similar third party, to the extent 
 91.33  permitted by the insurer or other third party and subject to 
 91.34  their networking credentialing, prior authorization, and 
 91.35  determination of medical necessity criteria. 
 91.36     Sec. 29.  Minnesota Statutes 1998, section 125A.24, is 
 92.1   amended to read: 
 92.2      125A.24 [PARENT ADVISORY COMMITTEES COUNCILS.] 
 92.3      Provisions of Minnesota Rules, part 3525.1100, regarding 
 92.4   parent advisory committees apply to local boards or cooperative 
 92.5   boards carrying out the provisions of this section.  In order to 
 92.6   increase the involvement of parents of children with 
 92.7   disabilities in district policy-making and decision-making, 
 92.8   school districts must have a special education advisory council 
 92.9   that is incorporated into the district's special education 
 92.10  system plan. 
 92.11     (1) This advisory council may be established either for 
 92.12  individual districts or in cooperation with other districts who 
 92.13  are members of the same special education cooperative. 
 92.14     (2) A district may set up this council as a subgroup of an 
 92.15  existing board, council, or committee. 
 92.16     (3) At least half of the designated council members must be 
 92.17  parents of students with a disability.  The number of members, 
 92.18  frequency of meetings, and operational procedures are to be 
 92.19  locally determined. 
 92.20     Sec. 30.  Minnesota Statutes 1998, section 125A.30, is 
 92.21  amended to read: 
 92.22     125A.30 [INTERAGENCY EARLY INTERVENTION COMMITTEES.] 
 92.23     (a) A school district, group of districts, or special 
 92.24  education cooperative, in cooperation with the health and human 
 92.25  service agencies located in the county or counties in which the 
 92.26  district or cooperative is located, must establish an 
 92.27  interagency early intervention committee for children with 
 92.28  disabilities under age five and their families under this 
 92.29  section, and for children with disabilities ages three to 22 
 92.30  consistent with the requirements under sections 125A.023 and 
 92.31  125A.027.  Committees must include representatives of local and 
 92.32  regional health, education, and county human service agencies, 
 92.33  county boards, school boards, early childhood family education 
 92.34  programs, parents of young children with disabilities under age 
 92.35  12, current service providers, and may also include 
 92.36  representatives from other private or public agencies and school 
 93.1   nurses.  The committee must elect a chair from among its members 
 93.2   and must meet at least quarterly. 
 93.3      (b) The committee must develop and implement interagency 
 93.4   policies and procedures concerning the following ongoing duties: 
 93.5      (1) develop public awareness systems designed to inform 
 93.6   potential recipient families of available programs and services; 
 93.7      (2) implement interagency child find systems designed to 
 93.8   actively seek out, identify, and refer infants and young 
 93.9   children with, or at risk of, disabilities and their families; 
 93.10     (3) establish and evaluate the identification, referral, 
 93.11  child and family assessment systems, procedural safeguard 
 93.12  process, and community learning systems to recommend, where 
 93.13  necessary, alterations and improvements; 
 93.14     (4) assure the development of individualized family service 
 93.15  plans for all eligible infants and toddlers with disabilities 
 93.16  from birth through age two, and their families, and individual 
 93.17  education plans and individual service plans when necessary to 
 93.18  appropriately serve children with disabilities, age three and 
 93.19  older, and their families and recommend assignment of financial 
 93.20  responsibilities to the appropriate agencies; 
 93.21     (5) encourage agencies to develop individual family service 
 93.22  plans for children with disabilities, age three and older; 
 93.23     (6) implement a process for assuring that services involve 
 93.24  cooperating agencies at all steps leading to individualized 
 93.25  programs; 
 93.26     (7) facilitate the development of a transitional plan if a 
 93.27  service provider is not recommended to continue to provide 
 93.28  services; 
 93.29     (8) identify the current services and funding being 
 93.30  provided within the community for children with disabilities 
 93.31  under age five and their families; 
 93.32     (9) develop a plan for the allocation and expenditure of 
 93.33  additional state and federal early intervention funds under 
 93.34  United States Code, title 20, section 1471 et seq.  (Part H, 
 93.35  Public Law Number 102-119) and United States Code, title 20, 
 93.36  section 631, et seq. (Chapter I, Public Law Number 89-313); and 
 94.1      (10) develop a policy that is consistent with section 
 94.2   13.05, subdivision 9, and federal law to enable a member of an 
 94.3   interagency early intervention committee to allow another member 
 94.4   access to data classified as not public. 
 94.5      (c) The local committee shall also: 
 94.6      (1) participate in needs assessments and program planning 
 94.7   activities conducted by local social service, health and 
 94.8   education agencies for young children with disabilities and 
 94.9   their families; 
 94.10     (2) review and comment on the early intervention section of 
 94.11  the total special education system for the district, the county 
 94.12  social service plan, the section or sections of the community 
 94.13  health services plan that address needs of and service 
 94.14  activities targeted to children with special health care needs, 
 94.15  and the section of the maternal and child health special project 
 94.16  grants that address needs of and service activities targeted to 
 94.17  children with chronic illness and disabilities; and. 
 94.18     (3) prepare a yearly summary on the progress of the 
 94.19  community in serving young children with disabilities, and their 
 94.20  families, including the expenditure of funds. 
 94.21     (d) The summary must be organized following a format 
 94.22  prescribed by the commissioner of the state lead agency and must 
 94.23  be submitted to each of the local agencies and to the state 
 94.24  interagency coordinating council by October 1 of each year. 
 94.25     The departments of children, families, and learning, 
 94.26  health, and human services must provide assistance to the local 
 94.27  agencies in developing cooperative plans for providing services. 
 94.28     Sec. 31.  Minnesota Statutes 1998, section 125A.33, is 
 94.29  amended to read: 
 94.30     125A.33 [SERVICE COORDINATION.] 
 94.31     (a) The team developing the IFSP under section 125A.32 must 
 94.32  select a service coordinator to carry out service coordination 
 94.33  activities on an interagency basis.  Service coordination must 
 94.34  actively promote a family's capacity and competency to identify, 
 94.35  obtain, coordinate, monitor, and evaluate resources and services 
 94.36  to meet the family's needs.  Service coordination activities 
 95.1   include: 
 95.2      (1) coordinating the performance of evaluations and 
 95.3   assessments; 
 95.4      (2) facilitating and participating in the development, 
 95.5   review, and evaluation of individualized family service plans; 
 95.6      (3) assisting families in identifying available service 
 95.7   providers; 
 95.8      (4) coordinating and monitoring the delivery of available 
 95.9   services; 
 95.10     (5) informing families of the availability of advocacy 
 95.11  services; 
 95.12     (6) coordinating with medical, health, and other service 
 95.13  providers; 
 95.14     (7) facilitating the development of a transition plan at 
 95.15  least six months 90 days before the time the child is no longer 
 95.16  eligible for early intervention services, if appropriate; 
 95.17     (8) managing the early intervention record and submitting 
 95.18  additional information to the local primary agency at the time 
 95.19  of periodic review and annual evaluations; and 
 95.20     (9) notifying a local primary agency when disputes between 
 95.21  agencies impact service delivery required by an IFSP. 
 95.22     (b) A service coordinator must be knowledgeable about 
 95.23  children and families receiving services under this section, 
 95.24  requirements of state and federal law, and services available in 
 95.25  the interagency early childhood intervention system.  
 95.26     Sec. 32.  Minnesota Statutes 1998, section 125A.44, is 
 95.27  amended to read: 
 95.28     125A.44 [COMPLAINT PROCEDURE.] 
 95.29     (a) An individual or organization may file a written signed 
 95.30  complaint with the commissioner of the state lead agency 
 95.31  alleging that one or more requirements of the Code of Federal 
 95.32  Regulations, title 34, part 303, is not being met.  The 
 95.33  complaint must include:  
 95.34     (1) a statement that the state has violated the Individuals 
 95.35  with Disabilities Education Act, United States Code, title 20, 
 95.36  section 1471 et seq. (Part H, Public Law Number 102-119) or Code 
 96.1   of Federal Regulations, title 34, section 303; and 
 96.2      (2) the facts on which the complaint is based. 
 96.3      (b) The commissioner of the state lead agency shall receive 
 96.4   and coordinate with other state agencies the review and 
 96.5   resolution of a complaint within 60 calendar days according to 
 96.6   the state interagency agreement required under section 125A.48.  
 96.7   The development and disposition of corrective action orders for 
 96.8   nonschool agencies shall be determined by the State Agency 
 96.9   Committee (SAC).  Failure to comply with corrective orders may 
 96.10  result in fiscal actions or other measures. 
 96.11     Sec. 33.  Minnesota Statutes 1998, section 125A.50, 
 96.12  subdivision 2, is amended to read: 
 96.13     Subd. 2.  [APPLICATION CONTENTS.] The application must set 
 96.14  forth: 
 96.15     (1) instructional services available to eligible pupils 
 96.16  under section 124D.67 124D.66, subdivision 3 2, and pupils with 
 96.17  a disability under section 125A.02; 
 96.18     (2) criteria to select pupils for the program and the 
 96.19  assessment procedures to determine eligibility; 
 96.20     (3) involvement in the program of parents of pupils in the 
 96.21  program, parent advocates, and community special education 
 96.22  advocates; 
 96.23     (4) accounting procedures to document that federal special 
 96.24  education money is used to supplement or increase the level of 
 96.25  special education instruction and related services provided with 
 96.26  state and local revenue, but in no case to supplant the state 
 96.27  and local revenue, and that districts are expending at least the 
 96.28  amount for special education instruction and related services 
 96.29  required by federal law; 
 96.30     (5) the role of regular and special education teachers in 
 96.31  planning and implementing the program; and 
 96.32     (6) other information requested by the commissioner.  
 96.33     Sec. 34.  Minnesota Statutes 1998, section 125A.50, 
 96.34  subdivision 5, is amended to read: 
 96.35     Subd. 5.  [ANNUAL REPORT.] Each year the district must 
 96.36  submit to the commissioner a report containing the information 
 97.1   described in subdivision 3 and section 124D.67, subdivision 7.  
 97.2      Sec. 35.  Minnesota Statutes 1998, section 125A.51, is 
 97.3   amended to read: 
 97.4      125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
 97.5   EDUCATION AND TRANSPORTATION.] 
 97.6      The responsibility for providing instruction and 
 97.7   transportation for a pupil without a disability who has a 
 97.8   short-term or temporary physical or emotional illness or 
 97.9   disability, as determined by the standards of the state board, 
 97.10  and who is temporarily placed for care and treatment for that 
 97.11  illness or disability, must be determined as provided in this 
 97.12  section.  
 97.13     (a) The school district of residence of the pupil is the 
 97.14  district in which the pupil's parent or guardian resides or the 
 97.15  district designated by the commissioner if neither parent nor 
 97.16  guardian is living within the state and tuition has been denied. 
 97.17     (b) When parental rights have been terminated by court 
 97.18  order, the legal residence of a child placed in a residential or 
 97.19  foster facility for care and treatment is the district in which 
 97.20  the child resides when parental rights have been terminated. 
 97.21     (b) (c) Before the placement of a pupil for care and 
 97.22  treatment, the district of residence must be notified and 
 97.23  provided an opportunity to participate in the placement 
 97.24  decision.  When an immediate emergency placement is necessary 
 97.25  and time does not permit resident district participation in the 
 97.26  placement decision, the district in which the pupil is 
 97.27  temporarily placed, if different from the district of residence, 
 97.28  must notify the district of residence of the emergency placement 
 97.29  within 15 days of the placement.  
 97.30     (c) (d) When a pupil without a disability is temporarily 
 97.31  placed for care and treatment in a day program and the pupil 
 97.32  continues to live within the district of residence during the 
 97.33  care and treatment, the district of residence must provide 
 97.34  instruction and necessary transportation to and from the 
 97.35  treatment facility for the pupil.  Transportation shall only be 
 97.36  provided by the district during regular operating hours of the 
 98.1   district. The district may provide the instruction at a school 
 98.2   within the district of residence, at the pupil's residence, or 
 98.3   in the case of a placement outside of the resident district, in 
 98.4   the district in which the day treatment program is located by 
 98.5   paying tuition to that district.  The district of placement may 
 98.6   contract with a facility to provide instruction by teachers 
 98.7   licensed by the state board of teaching.  
 98.8      (d) (e) When a pupil without a disability is temporarily 
 98.9   placed in a residential program for care and treatment, the 
 98.10  district in which the pupil is placed must provide instruction 
 98.11  for the pupil and necessary transportation while the pupil is 
 98.12  receiving instruction, and in the case of a placement outside of 
 98.13  the district of residence, the nonresident district must bill 
 98.14  the district of residence for the actual cost of providing the 
 98.15  instruction for the regular school year and for summer school, 
 98.16  excluding transportation costs.  When a pupil without a 
 98.17  disability is temporarily placed in a residential program 
 98.18  outside the district of residence, the administrator of the 
 98.19  court placing the pupil must send timely written notice of the 
 98.20  placement to the district of residence.  The district of 
 98.21  placement may contract with a residential facility to provide 
 98.22  instruction by teachers licensed by the state board of teaching. 
 98.23  For purposes of this section, the state correctional facilities 
 98.24  operated on a fee-for-service basis are considered to be 
 98.25  residential programs for care and treatment. 
 98.26     (e) (f) The district of residence must include the pupil in 
 98.27  its residence count of pupil units and pay tuition as provided 
 98.28  in section 123A.488 to the district providing the instruction.  
 98.29  Transportation costs must be paid by the district providing the 
 98.30  transportation and the state must pay transportation aid to that 
 98.31  district.  For purposes of computing state transportation aid, 
 98.32  pupils governed by this subdivision must be included in the 
 98.33  disabled transportation category.  
 98.34     Sec. 36.  [125A.515] [PLACEMENT OF CHILDREN WITHOUT 
 98.35  DISABILITIES; APPROVAL OF EDUCATION PROGRAM.] 
 98.36     The commissioner shall approve education programs in care 
 99.1   and treatment facilities for placement of children without 
 99.2   disabilities, including detention centers, before being licensed 
 99.3   by the department of human services or the department of 
 99.4   corrections. 
 99.5      <i>(Effective Date:  Section 36 (125A.515) is effective July</i> 
 99.6   <i>1, 2000.)</i> 
 99.7      Sec. 37.  Minnesota Statutes 1998, section 125A.52, 
 99.8   subdivision 1, is amended to read: 
 99.9      Subdivision 1.  [EDUCATIONAL SCREENING.] Secure and 
 99.10  nonsecure residential treatment facilities licensed by the 
 99.11  department of human services or the department of corrections 
 99.12  must screen each juvenile who is held in a facility for at least 
 99.13  72 hours, excluding weekends or holidays, using an educational 
 99.14  screening tool identified by the department, unless the facility 
 99.15  determines that the juvenile has a current individual education 
 99.16  plan and obtains a copy of it.  The department must develop or 
 99.17  identify an education screening tool for use in residential 
 99.18  facilities.  The tool must include a life skills development 
 99.19  component. 
 99.20     Sec. 38.  Minnesota Statutes 1998, section 125A.62, is 
 99.21  amended to read: 
 99.22     125A.62 [DUTIES OF STATE THE BOARD OF EDUCATION THE 
 99.23  MINNESOTA STATE ACADEMIES.] 
 99.24     Subdivision 1.  [GOVERNANCE.] The board of the Faribault 
 99.25  academy Minnesota state academies shall govern the state 
 99.26  academies for the deaf and the state academy for the blind.  The 
 99.27  board must promote academic standards based on high expectation 
 99.28  and an assessment system to measure academic performance toward 
 99.29  the achievement of those standards.  The board must focus on the 
 99.30  academies' needs as a whole and not prefer one school over the 
 99.31  other.  The board of the Faribault Minnesota state academies 
 99.32  shall consist of seven nine persons.  The members of the board 
 99.33  shall be appointed by the governor with the advice and consent 
 99.34  of the senate.  Three members One member must be from the 
 99.35  seven-county metropolitan area, three members one member must be 
 99.36  from greater Minnesota, and one member may be appointed at-large.
100.1   The board must be composed of: 
100.2      (1) one present or former superintendent of an independent 
100.3   school district; 
100.4      (2) one present or former special education director; 
100.5      (3) the commissioner of children, families, and learning or 
100.6   the commissioner's designee; 
100.7      (4) one member of the blind community; 
100.8      (5) one member of the deaf community; and 
100.9      (6) two members of the general public with business, 
100.10  administrative, or financial expertise; 
100.11     (7) one nonvoting, unpaid ex officio member appointed by 
100.12  the site council for the state academy for the deaf; and 
100.13     (8) one nonvoting, unpaid ex officio member appointed by 
100.14  the site council for the state academy for the blind. 
100.15     Subd. 2.  [TERMS; COMPENSATION; AND OTHER.] The membership 
100.16  terms, compensation, removal of members, and filling of 
100.17  vacancies shall be as provided for in section 15.0575.  
100.18  Notwithstanding section 15.0575, a member may serve not more 
100.19  than two consecutive four-year terms. 
100.20     Subd. 3.  [MEETINGS.] All meetings of the board shall be as 
100.21  provided in section 471.705 and must be held in Faribault. 
100.22     Subd. 4.  [MOST BENEFICIAL, LEAST RESTRICTIVE.] The board 
100.23  must do what is necessary to provide the most beneficial and 
100.24  least restrictive program of education for each pupil at the 
100.25  academies who is handicapped by visual disability or deafness.  
100.26     Subd. 5.  [PLANNING, EVALUATION, AND REPORTING.] To the 
100.27  extent required in school districts, the board must establish a 
100.28  process for the academies to include parent and community input 
100.29  in the planning, evaluation, and reporting of curriculum and 
100.30  pupil achievement. 
100.31     Subd. 6.  [SITE COUNCILS.] The board may must establish, 
100.32  and appoint members to, a site council at each academy.  The 
100.33  site councils shall exercise power and authority granted by the 
100.34  board.  The board must appoint to each site council the 
100.35  exclusive representative's employee designee from each exclusive 
100.36  representative at the academies.  The site councils may make a 
101.1   recommendation to the governor regarding board appointments no 
101.2   more than 30 days after receiving the list of applicants from 
101.3   the governor. 
101.4      Subd. 7.  [TRUSTEE OF ACADEMIES' PROPERTY.] The board is 
101.5   the trustee of the academies' property.  Securities and money, 
101.6   including income from the property, must be deposited in the 
101.7   state treasury according to section 16A.275.  The deposits are 
101.8   subject to the order of the board.  
101.9      Subd. 8.  [GRANTS.] The board, through the chief 
101.10  administrators of the academies, may apply for all competitive 
101.11  grants administered by agencies of the state and other 
101.12  government or nongovernment sources.  Application may not be 
101.13  made for grants over which the board has discretion. 
101.14     <i>(Effective date:  Section 38 (125A.62) is effective</i> 
101.15  <i>December 31, 1999.)</i> 
101.16     Sec. 39.  Minnesota Statutes 1998, section 125A.64, is 
101.17  amended to read: 
101.18     125A.64 [POWERS OF BOARD OF THE FARIBAULT MINNESOTA STATE 
101.19  ACADEMIES.] 
101.20     Subdivision 1.  [PERSONNEL.] The board of the Faribault 
101.21  Minnesota state academies may employ central administrative 
101.22  staff members and other personnel necessary to provide and 
101.23  support programs and services at each academy.  
101.24     Subd. 2.  [GET HELP FROM DEPARTMENT.] The board of the 
101.25  Faribault Minnesota state academies may require the department 
101.26  of children, families, and learning to provide program 
101.27  leadership, program monitoring, and technical assistance at the 
101.28  academies.  
101.29     Subd. 3.  [UNCLASSIFIED POSITIONS.] The board of the 
101.30  Faribault Minnesota state academies may place any position other 
101.31  than residential academies administrator in the unclassified 
101.32  service.  The position must meet the criteria in section 43A.08, 
101.33  subdivision 1a.  
101.34     Subd. 4.  [RESIDENTIAL AND BUILDING MAINTENANCE SERVICES.] 
101.35  The board of the Faribault Minnesota state academies may enter 
101.36  into agreements with public or private agencies or institutions 
102.1   to provide residential and building maintenance services.  The 
102.2   board of the Faribault Minnesota state academies must first 
102.3   decide that contracting for the services is more efficient and 
102.4   less expensive than not contracting for them.  
102.5      Subd. 5.  [STUDENT TEACHERS AND PROFESSIONAL TRAINEES.] (a) 
102.6   The board of the Faribault Minnesota state academies may enter 
102.7   into agreements with teacher preparation institutions for 
102.8   student teachers to get practical experience at the academies.  
102.9   A licensed teacher must provide appropriate supervision of each 
102.10  student teacher.  
102.11     (b) The board of the Faribault Minnesota state academies 
102.12  may enter into agreements with accredited higher education 
102.13  institutions for certain student trainees to get practical 
102.14  experience at the academies.  The students must be preparing 
102.15  themselves in a professional field that provides special 
102.16  services to children with a disability in school programs.  To 
102.17  be a student trainee in a field, a person must have completed at 
102.18  least two years of an approved program in the field.  A person 
102.19  who is licensed or registered in the field must provide 
102.20  appropriate supervision of each student trainee.  
102.21     <i>(Effective date:  Section 39 (125A.64) is effective</i> 
102.22  <i>December 31, 1999.)</i> 
102.23     Sec. 40.  Minnesota Statutes 1998, section 125A.65, 
102.24  subdivision 3, is amended to read: 
102.25     Subd. 3.  [EDUCATIONAL PROGRAM; TUITION.] When it is 
102.26  determined pursuant to section 125A.69, subdivision 1 or 2, that 
102.27  the child is entitled to attend either school, the board of the 
102.28  Faribault Minnesota state academies must provide the appropriate 
102.29  educational program for the child.  The board of the Faribault 
102.30  Minnesota state academies must make a tuition charge to the 
102.31  child's district of residence for the cost of providing the 
102.32  program.  The amount of tuition charged must not exceed the 
102.33  basic revenue of the district for that child, for the amount of 
102.34  time the child is in the program.  For purposes of this 
102.35  subdivision, "basic revenue" has the meaning given it in section 
102.36  126C.10, subdivision 2.  The district of the child's residence 
103.1   must pay the tuition and may claim general education aid for the 
103.2   child.  Tuition received by the board of the Faribault Minnesota 
103.3   state academies, except for tuition received under subdivision 
103.4   4, must be deposited in the state treasury as provided in 
103.5   subdivision 8. 
103.6      <i>(Effective date:  Section 40 (125A.65, subdivision 3) is</i> 
103.7   <i>effective December 31, 1999.)</i> 
103.8      Sec. 41.  Minnesota Statutes 1998, section 125A.65, 
103.9   subdivision 5, is amended to read: 
103.10     Subd. 5.  [PROVIDING APPROPRIATE EDUCATIONAL PROGRAMS.] 
103.11  When it is determined that the child can benefit from public 
103.12  school enrollment but that the child should also remain in 
103.13  attendance at the applicable school, the district where the 
103.14  institution is located must provide an appropriate educational 
103.15  program for the child and must make a tuition charge to the 
103.16  board of the Faribault Minnesota state academies for the actual 
103.17  cost of providing the program, less any amount of aid received 
103.18  pursuant to section 125A.75.  The board of the Faribault 
103.19  Minnesota state academies must pay the tuition and other program 
103.20  costs including the unreimbursed transportation costs.  Aids for 
103.21  children with a disability must be paid to the district 
103.22  providing the special instruction and services.  Special 
103.23  transportation must be provided by the district providing the 
103.24  educational program and the state must reimburse that district 
103.25  within the limits provided by law.  
103.26     <i>(Effective date:  Section 41 (125A.65, subdivision 5) is</i> 
103.27  <i>effective December 31, 1999.)</i> 
103.28     Sec. 42.  Minnesota Statutes 1998, section 125A.65, 
103.29  subdivision 6, is amended to read: 
103.30     Subd. 6.  [TUITION REDUCTION.] Notwithstanding the 
103.31  provisions of subdivisions 3 and 5, the board of the Faribault 
103.32  Minnesota state academies may agree to make a tuition charge for 
103.33  less than the amount specified in subdivision 3 for pupils 
103.34  attending the applicable school who are residents of the 
103.35  district where the institution is located and who do not board 
103.36  at the institution, if that district agrees to make a tuition 
104.1   charge to the board of the Faribault Minnesota state academies 
104.2   for less than the amount specified in subdivision 5 for 
104.3   providing appropriate educational programs to pupils attending 
104.4   the applicable school. 
104.5      <i>(Effective date:  Section 42 (125A.65, subdivision 6) is</i> 
104.6   <i>effective December 31, 1999.)</i> 
104.7      Sec. 43.  Minnesota Statutes 1998, section 125A.65, 
104.8   subdivision 7, is amended to read: 
104.9      Subd. 7.  [STAFF ALLOCATION.] Notwithstanding the 
104.10  provisions of subdivisions 3 and 5, the board of the Faribault 
104.11  Minnesota state academies may agree to supply staff from the 
104.12  Minnesota state academy for the deaf and the Minnesota state 
104.13  academy for the blind to participate in the programs provided by 
104.14  the district where the institutions are located when the 
104.15  programs are provided to students in attendance at the state 
104.16  schools.  
104.17     <i>(Effective date:  Section 43 (125A.65, subdivision 7) is</i> 
104.18  <i>effective December 31, 1999.)</i> 
104.19     Sec. 44.  Minnesota Statutes 1998, section 125A.65, 
104.20  subdivision 8, is amended to read: 
104.21     Subd. 8.  [STUDENT COUNT; TUITION.] On May 1 of each year, 
104.22  the board of the Faribault Minnesota state academies shall count 
104.23  the actual number of Minnesota resident kindergarten and 
104.24  elementary students and the actual number of Minnesota resident 
104.25  secondary students enrolled and receiving education services at 
104.26  the Minnesota state academy for the deaf and the Minnesota state 
104.27  academy for the blind.  The board of the Faribault Minnesota 
104.28  state academies shall deposit in the state treasury an amount 
104.29  equal to all tuition received less:  
104.30     (1) the total number of students on May 1 less 175, times 
104.31  the ratio of the number of kindergarten and elementary students 
104.32  to the total number of students on May 1, times the general 
104.33  education formula allowance; plus 
104.34     (2) the total number of students on May 1 less 175, times 
104.35  the ratio of the number of secondary students on May 1 to the 
104.36  total number of students on May 1, times 1.3, times the general 
105.1   education formula allowance.  
105.2      <i>(Effective date:  Section 44 (125A.65, subdivision 8) is</i> 
105.3   <i>effective December 31, 1999.)</i> 
105.4      Sec. 45.  Minnesota Statutes 1998, section 125A.65, 
105.5   subdivision 10, is amended to read: 
105.6      Subd. 10.  [ANNUAL APPROPRIATION.] There is annually 
105.7   appropriated to the department for the Faribault Minnesota state 
105.8   academies the tuition amounts received and credited to the 
105.9   general operation account of the academies under this section.  
105.10  A balance in an appropriation under this paragraph does not 
105.11  cancel but is available in successive fiscal years.  
105.12     <i>(Effective date:  Section 45 (125A.65, subdivision 10) is</i> 
105.13  <i>effective December 31, 1999.)</i> 
105.14     Sec. 46.  Minnesota Statutes 1998, section 125A.68, 
105.15  subdivision 1, is amended to read: 
105.16     Subdivision 1.  [SUBJECTS.] The board of the Faribault 
105.17  Minnesota state academies must establish procedures for:  
105.18     (1) admission, including short-term admission, to the 
105.19  academies; 
105.20     (2) discharge from the academies; 
105.21     (3) decisions on a pupil's program at the academies; and 
105.22     (4) evaluation of a pupil's progress at the academies.  
105.23     <i>(Effective date:  Section 46 (125A.68, subdivision 1) is</i> 
105.24  <i>effective December 31, 1999.)</i> 
105.25     Sec. 47.  Minnesota Statutes 1998, section 125A.69, 
105.26  subdivision 1, is amended to read: 
105.27     Subdivision 1.  [TWO KINDS.] There are two kinds of 
105.28  admission to the Minnesota state academies.  
105.29     (a) A pupil who is deaf, hard of hearing, or blind-deaf, 
105.30  may be admitted to the academy for the deaf.  A pupil who is 
105.31  blind or visually impaired, blind-deaf, or multiply handicapped 
105.32  may be admitted to the academy for the blind.  For a pupil to be 
105.33  admitted, two decisions must be made under sections 125A.03 to 
105.34  125A.24 and 125A.65. 
105.35     (1) It must be decided by the individual education planning 
105.36  team that education in regular or special education classes in 
106.1   the pupil's district of residence cannot be achieved 
106.2   satisfactorily because of the nature and severity of the 
106.3   deafness or blindness or visual impairment respectively. 
106.4      (2) It must be decided by the individual education planning 
106.5   team that the academy provides the most appropriate placement 
106.6   within the least restrictive alternative for the pupil.  
106.7      (b) A deaf or hard of hearing child or a visually impaired 
106.8   pupil may be admitted to get socialization skills or on a 
106.9   short-term basis for skills development.  
106.10     <i>(Effective date:  Section 47 (125A.69, subdivision 1) is</i> 
106.11  <i>effective December 1, 1999.)</i> 
106.12     Sec. 48.  Minnesota Statutes 1998, section 125A.69, 
106.13  subdivision 3, is amended to read: 
106.14     Subd. 3.  [OUT-OF-STATE ADMISSIONS.] An applicant from 
106.15  another state who can benefit from attending either academy may 
106.16  be admitted to the academy if the admission does not prevent an 
106.17  eligible Minnesota resident from being admitted.  The state 
106.18  board of education board of the Minnesota state academies must 
106.19  obtain reimbursement from the other state for the costs of the 
106.20  out-of-state admission.  The state board may enter into an 
106.21  agreement with the appropriate authority in the other state for 
106.22  the reimbursement.  Money received from another state must be 
106.23  deposited in the general fund and credited to the general 
106.24  operating account of the academies.  The money is appropriated 
106.25  to the academies. 
106.26     <i>(Effective date:  Section 48 (125A.69, subdivision 3) is</i> 
106.27  <i>effective December 31, 1999.)</i> 
106.28     Sec. 49.  Minnesota Statutes 1998, section 125A.70, 
106.29  subdivision 2, is amended to read: 
106.30     Subd. 2.  [LOCAL SOCIAL SERVICES AGENCY.] If the person 
106.31  liable for support of a pupil cannot support the pupil, the 
106.32  local social services agency of the county of the pupil's 
106.33  residence must do so.  The commissioner of children, families, 
106.34  and learning must decide how much the local social services 
106.35  agency must pay.  The board of the Faribault Minnesota state 
106.36  academies must adopt rules that tell how the commissioner is to 
107.1   fix the amount.  The local social services agency must make the 
107.2   payment to the superintendent of the school district of 
107.3   residence.  
107.4      <i>(Effective date:  Section 49 (125A.70, subdivision 2) is</i> 
107.5   <i>effective December 31, 1999.)</i> 
107.6      Sec. 50.  Minnesota Statutes 1998, section 125A.71, 
107.7   subdivision 3, is amended to read: 
107.8      Subd. 3.  [CONTRACTS; FEES; APPROPRIATION.] The state board 
107.9   of the Minnesota state academies may enter into agreements for 
107.10  the academies to provide respite care and supplemental 
107.11  educational instruction and services including assessments and 
107.12  counseling.  The agreements may be made with public or private 
107.13  agencies or institutions, school districts, service 
107.14  cooperatives, or counties.  The board may authorize the 
107.15  academies to provide conferences, seminars, nondistrict and 
107.16  district requested technical assistance, and production of 
107.17  instructionally related materials. 
107.18     <i>(Effective date:  Section 50 (125A.71, subdivision 3) is</i> 
107.19  <i>effective December 31, 1999.)</i> 
107.20     Sec. 51.  Minnesota Statutes 1998, section 125A.72, is 
107.21  amended to read: 
107.22     125A.72 [STUDENT ACTIVITIES ACCOUNT.] 
107.23     Subdivision 1.  [STUDENT ACTIVITIES; RECEIPTS; 
107.24  APPROPRIATION.] All receipts of any kind generated to operate 
107.25  student activities, including student fees, donations and 
107.26  contributions, and gate receipts must be deposited in the state 
107.27  treasury.  The receipts are appropriated annually to the 
107.28  residential Minnesota state academies for student activities 
107.29  purposes.  They are not subject to budgetary control by the 
107.30  commissioner of finance. 
107.31     Subd. 2.  [TO STUDENT ACTIVITIES ACCOUNT.] The money 
107.32  appropriated in subdivision 1 to the residential Minnesota state 
107.33  academies for student activities must be credited to a Faribault 
107.34  Minnesota state academies' student activities account and may be 
107.35  spent only for Faribault Minnesota state academies' student 
107.36  activities purposes. 
108.1      Subd. 3.  [CARRYOVER.] An unexpended balance in the 
108.2   Faribault Minnesota state academies' student activities account 
108.3   may be carried over from the first fiscal year of the biennium 
108.4   into the second fiscal year of the biennium and from one 
108.5   biennium to the next.  The amount carried over must not be taken 
108.6   into account in determining state appropriations and must not be 
108.7   deducted from a later appropriation. 
108.8      Subd. 4.  [MONEY FROM CERTAIN STUDENT ACTIVITIES 
108.9   SPECIFICALLY INCLUDED AMONG RECEIPTS.] Any money generated by 
108.10  a Faribault Minnesota state academies' student activity that 
108.11  involves:  
108.12     (1) state employees who are receiving compensation for 
108.13  their involvement with the activity; 
108.14     (2) the use of state facilities; or 
108.15     (3) money raised for student activities in the name of the 
108.16  residential Minnesota state academies 
108.17  is specifically included among the kinds of receipts that are 
108.18  described in subdivision 1. 
108.19     <i>(Effective date:  Section 51 (125A.72) is effective</i> 
108.20  <i>December 31, 1999.)</i> 
108.21     Sec. 52.  Minnesota Statutes 1998, section 125A.73, is 
108.22  amended to read: 
108.23     125A.73 [DUTIES OF STATE DEPARTMENTS.] 
108.24     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
108.25  LEARNING.] The department of children, families, and learning 
108.26  must assist the board of the Faribault Minnesota state academies 
108.27  in preparing reports on the academies.  
108.28     Subd. 2.  [DEPARTMENT OF EMPLOYEE RELATIONS.] The 
108.29  department of employee relations, in cooperation with the board 
108.30  of the Faribault Minnesota state academies, must develop a 
108.31  statement of necessary qualifications and skills for all staff 
108.32  members of the academies. 
108.33     <i>(Effective date:  Section 52 (125A.73) is effective</i> 
108.34  <i>December 31, 1999.)</i> 
108.35     Sec. 53.  Minnesota Statutes 1998, section 125A.744, 
108.36  subdivision 3, is amended to read: 
109.1      Subd. 3.  [IMPLEMENTATION.] Consistent with section 
109.2   256B.0625, subdivision 26, school districts may enroll as 
109.3   medical assistance providers or subcontractors and bill the 
109.4   department of human services under the medical assistance fee 
109.5   for service claims processing system for special education 
109.6   services which are covered services under chapter 256B, which 
109.7   are provided in the school setting for a medical assistance 
109.8   recipient, and for whom the district has secured informed 
109.9   consent consistent with section 13.05, subdivision 4, paragraph 
109.10  (d), and section 256B.77, subdivision 2, paragraph (p), to bill 
109.11  for each type of covered service.  School districts shall be 
109.12  reimbursed by the commissioner of human services for the federal 
109.13  share of individual education plan health-related services that 
109.14  qualify for reimbursement by medical assistance.  A school 
109.15  district is not eligible to enroll as a home care provider or a 
109.16  personal care provider organization for purposes of billing home 
109.17  care services under section 256B.0627 until the commissioner of 
109.18  human services issues a bulletin instructing county public 
109.19  health nurses on how to assess for the needs of eligible 
109.20  recipients during school hours.  To use private duty nursing 
109.21  services or personal care services at school, the recipient or 
109.22  responsible party must provide written authorization in the care 
109.23  plan identifying the chosen provider and the daily amount of 
109.24  services to be used at school.  Medical assistance services for 
109.25  those enrolled in a prepaid health plan shall remain the 
109.26  responsibility of the contracted health plan subject to their 
109.27  network, credentialing, prior authorization, and determination 
109.28  of medical necessity criteria.  The commissioner of human 
109.29  services shall adjust payments to health plans to reflect 
109.30  increased costs incurred by health plans due to increased 
109.31  payments made to school districts or new payment or delivery 
109.32  arrangements developed by health plans in cooperation with 
109.33  school districts. 
109.34     <i>(Effective Date:  Section 53 (125A.744, subdivision 3) is</i> 
109.35  <i>effective July 1, 2000.)</i> 
109.36     Sec. 54.  Minnesota Statutes 1998, section 125A.75, 
110.1   subdivision 3, is amended to read: 
110.2      Subd. 3.  [FULL STATE PAYMENT.] The state must pay each 
110.3   district the actual cost incurred in providing instruction and 
110.4   services for a child with a disability whose district of 
110.5   residence has been determined by section 125A.17 or 125A.51, 
110.6   paragraph (b), and who is temporarily placed in a state 
110.7   institution or, a licensed residential facility, or foster 
110.8   facility for care and treatment.  This section does not apply to 
110.9   a child placed in a foster home or a foster group home.  The 
110.10  regular education program at the facility must be an approved 
110.11  program according to section 125A.515. 
110.12     Upon following the procedure specified by the commissioner, 
110.13  the district may bill the state the actual cost incurred in 
110.14  providing the services including transportation costs and a 
110.15  proportionate amount of capital expenditures and debt service, 
110.16  minus the amount of the basic revenue, as defined in section 
110.17  126C.10, subdivision 2, of the district for the child and the 
110.18  special education aid, transportation aid, and any other aid 
110.19  earned on behalf of the child.  The limit in subdivision 2 
110.20  applies to aid paid pursuant to this subdivision.  
110.21     To the extent possible, the commissioner shall obtain 
110.22  reimbursement from another state for the cost of serving any 
110.23  child whose parent or guardian resides in that state.  The 
110.24  commissioner may contract with the appropriate authorities of 
110.25  other states to effect reimbursement.  All money received from 
110.26  other states must be paid to the state treasury and placed in 
110.27  the general fund.  
110.28     <i>(Effective Date:  Section 54 (125A.75, subdivision 3) is</i> 
110.29  <i>effective July 1, 2000.)</i> 
110.30     Sec. 55.  Minnesota Statutes 1998, section 125A.75, 
110.31  subdivision 8, is amended to read: 
110.32     Subd. 8.  [LITIGATION AND HEARING COSTS.] (a) For fiscal 
110.33  year 1999 and thereafter, the commissioner of children, 
110.34  families, and learning, or the commissioner's designee, shall 
110.35  use state funds to pay school districts for the administrative 
110.36  costs of a due process hearing incurred under section 125A.09, 
111.1   subdivisions 6, 10, and 11, including hearing officer fees, 
111.2   court reporter fees, mileage costs, transcript 
111.3   costs, interpreter and transliterator fees, independent 
111.4   evaluations ordered by the hearing officer, and rental of 
111.5   hearing rooms, but not including district attorney fees.  To 
111.6   receive state aid under this paragraph, a school district shall 
111.7   submit to the commissioner at the end of the school year by 
111.8   August 1 an itemized list of unreimbursed actual costs for fees 
111.9   and other expenses under this paragraph incurred after June 30, 
111.10  1998, for hearings completed during the previous fiscal year.  
111.11  State funds used for aid to school districts under this 
111.12  paragraph shall be based on the unreimbursed actual costs and 
111.13  fees submitted by a district from previous school years. 
111.14     (b) For fiscal year 1999 and thereafter, a school district, 
111.15  to the extent to which it prevails under United States Code, 
111.16  title 20, section 1415(i)(3)(B)(D) and Rule 68 of the Federal 
111.17  Rules of Civil Procedure, shall receive state aid equal to 50 
111.18  percent of the total actual cost of attorney fees incurred after 
111.19  a request for a due process hearing under section 125A.09, 
111.20  subdivisions 6, 9, and 11, is served upon the parties.  A 
111.21  district is eligible for reimbursement for attorney fees under 
111.22  this paragraph only if: 
111.23     (1) a court of competent jurisdiction determines that the 
111.24  parent is not the prevailing party under United States Code, 
111.25  title 20, section 1415(i)(3)(B)(D), or the parties stipulate 
111.26  that the parent is not the prevailing party; 
111.27     (2) the district has made a good faith effort to resolve 
111.28  the dispute through mediation, but the obligation to mediate 
111.29  does not compel the district to agree to a proposal or make a 
111.30  concession; and 
111.31     (3) the district made an offer of settlement under Rule 68 
111.32  of the Federal Rules of Civil Procedure.  
111.33     To receive aid, a school district that meets the criteria 
111.34  of this paragraph shall submit to the commissioner at the end of 
111.35  the school year an itemized list of unreimbursed actual attorney 
111.36  fees associated with a due process hearing under section 
112.1   125A.09, subdivisions 6, 9, and 11.  Aid under this paragraph 
112.2   for each school district is based on unreimbursed actual 
112.3   attorney fees submitted by the district from previous school 
112.4   years. 
112.5      (c) For fiscal year 1999 and thereafter, a school district 
112.6   is eligible to receive state aid for 50 percent of the total 
112.7   actual cost of attorney fees it incurs in appealing to a court 
112.8   of competent jurisdiction the findings, conclusions, and order 
112.9   of a due process hearing under section 125A.09, subdivisions 6, 
112.10  9, and 11.  The district is eligible for reimbursement under 
112.11  this paragraph only if the commissioner authorizes the 
112.12  reimbursement after evaluating the merits of the case.  In a 
112.13  case where the commissioner is a named party in the litigation, 
112.14  the commissioner of the bureau of mediation services shall make 
112.15  the determination regarding reimbursement.  The commissioner's 
112.16  decision is final.  
112.17     (d) The commissioner shall provide districts with a form on 
112.18  which to annually report litigation costs under this section and 
112.19  shall base aid estimates on those preliminary reports submitted 
112.20  by the district during the current fiscal year. 
112.21     <i>(Effective Date:  Section 55 (125A.75, subdivision 8) is</i> 
112.22  <i>effective the day following final enactment.)</i> 
112.23     Sec. 56.  Minnesota Statutes 1998, section 125A.76, 
112.24  subdivision 1, is amended to read: 
112.25     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
112.26  section and section 125A.77, the definitions in this subdivision 
112.27  apply. 
112.28     (a) "Base year" for fiscal year 1998 and later fiscal years 
112.29  means the second fiscal year preceding the fiscal year for which 
112.30  aid will be paid. 
112.31     (b) "Basic revenue" has the meaning given it in section 
112.32  126C.10, subdivision 2.  For the purposes of computing basic 
112.33  revenue pursuant to this section, each child with a disability 
112.34  shall be counted as prescribed in section 126C.05, subdivision 1.
112.35     (c) "Essential personnel" means teachers, related services, 
112.36  and support services staff providing direct services to students.
113.1      (d) "Average daily membership" has the meaning given it in 
113.2   section 126C.05. 
113.3      (e) "Program growth factor" means 1.00 1.02 for fiscal year 
113.4   2000 2002 and later. 
113.5      (f) "Aid percentage factor" means 60 percent for fiscal 
113.6   year 1996, 70 percent for fiscal year 1997, 80 percent for 
113.7   fiscal year 1998, 90 percent for fiscal year 1999, and 100 
113.8   percent for fiscal years 2000 and later. 
113.9      (g) "Levy percentage factor" means 100 minus the aid 
113.10  percentage factor for that year. 
113.11     Sec. 57.  Minnesota Statutes 1998, section 125A.76, 
113.12  subdivision 2, is amended to read: 
113.13     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
113.14  education base revenue equals the sum of the following amounts 
113.15  computed using base year data: 
113.16     (1) 68 percent of the salary of each essential person 
113.17  employed in the district's program for children with a 
113.18  disability during the fiscal year, not including the share of 
113.19  salaries for personnel providing health-related services counted 
113.20  in clause (8), whether the person is employed by one or more 
113.21  districts or a Minnesota correctional facility operating on a 
113.22  fee-for-service basis; 
113.23     (2) for the Minnesota state academy for the deaf or the 
113.24  Minnesota state academy for the blind, 68 percent of the salary 
113.25  of each instructional aide assigned to a child attending the 
113.26  academy, if that aide is required by the child's individual 
113.27  education plan; 
113.28     (3) for special instruction and services provided to any 
113.29  pupil by contracting with public, private, or voluntary agencies 
113.30  other than school districts, in place of special instruction and 
113.31  services provided by the district, 52 percent of the difference 
113.32  between the amount of the contract and the basic revenue of the 
113.33  district for that pupil for the fraction of the school day the 
113.34  pupil receives services under the contract; 
113.35     (4) for special instruction and services provided to any 
113.36  pupil by contracting for services with public, private, or 
114.1   voluntary agencies other than school districts, that are 
114.2   supplementary to a full educational program provided by the 
114.3   school district, 52 percent of the amount of the contract for 
114.4   that pupil; 
114.5      (5) for supplies and equipment purchased or rented for use 
114.6   in the instruction of children with a disability, not including 
114.7   the portion of the expenses for supplies and equipment used to 
114.8   provide health-related services counted in clause (8), an amount 
114.9   equal to 47 percent of the sum actually expended by the 
114.10  district, or a Minnesota correctional facility operating on a 
114.11  fee-for-service basis, but not to exceed an average of $47 in 
114.12  any one school year for each child with a disability receiving 
114.13  instruction; 
114.14     (6) for fiscal years 1997 and later, special education base 
114.15  revenue shall include amounts under clauses (1) to (5) for 
114.16  special education summer programs provided during the base year 
114.17  for that fiscal year; and 
114.18     (7) for fiscal years 1999 and later, the cost of providing 
114.19  transportation services for children with disabilities under 
114.20  section 123B.92, subdivision 1, paragraph (b), clause (4); and 
114.21     (8) for fiscal years 2001 and later the cost of salaries, 
114.22  supplies and equipment, and other related costs actually 
114.23  expended by the district for the nonfederal share of medical 
114.24  assistance services according to section 256B.0625, subdivision 
114.25  26. 
114.26     (b) If requested by a school district operating a special 
114.27  education program during the base year for less than the full 
114.28  fiscal year, or a school district in which is located a 
114.29  Minnesota correctional facility operating on a fee-for-service 
114.30  basis for less than the full fiscal year, the commissioner may 
114.31  adjust the base revenue to reflect the expenditures that would 
114.32  have occurred during the base year had the program been operated 
114.33  for the full fiscal year. 
114.34     (c) Notwithstanding paragraphs (a) and (b), the portion of 
114.35  a school district's base revenue attributable to a Minnesota 
114.36  correctional facility operating on a fee-for-service basis 
115.1   during the facility's first year of operating on a 
115.2   fee-for-service basis shall be computed using current year data. 
115.3      <i>(Effective Date:  Section 57 (125A.76, subdivision 2) is</i> 
115.4   <i>effective July 1, 2000).</i> 
115.5      Sec. 58.  Minnesota Statutes 1998, section 125A.76, 
115.6   subdivision 4, is amended to read: 
115.7      Subd. 4.  [STATE TOTAL SPECIAL EDUCATION REVENUE AID.] The 
115.8   state total special education revenue aid for fiscal year 1998 
115.9   2000 equals $358,542,000 $436,834,000.  The state total special 
115.10  education revenue aid for fiscal year 1999 2001 equals 
115.11  $435,322,000 $436,834,000.  The state total special 
115.12  education revenue aid for later fiscal years equals:  
115.13     (1) the state total special education revenue aid for the 
115.14  preceding fiscal year; times 
115.15     (2) the program growth factor; times 
115.16     (3) the ratio of the state total average daily membership 
115.17  for the current fiscal year to the state total average daily 
115.18  membership for the preceding fiscal year. 
115.19     Sec. 59.  Minnesota Statutes 1998, section 125A.76, 
115.20  subdivision 5, is amended to read: 
115.21     Subd. 5.  [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE AID.] 
115.22  (a) A school district's special education revenue aid for fiscal 
115.23  year 1996 2000 and later equals the state total special 
115.24  education revenue aid, minus the amount determined 
115.25  under paragraph paragraphs (b) and (c), times the ratio of the 
115.26  district's adjusted special education base revenue to the state 
115.27  total adjusted special education base revenue.  If the state 
115.28  board of education modifies its rules for special education in a 
115.29  manner that increases a district's special education obligations 
115.30  or service requirements, the commissioner shall annually 
115.31  increase each district's special education revenue aid by the 
115.32  amount necessary to compensate for the increased service 
115.33  requirements.  The additional revenue aid equals the cost in the 
115.34  current year attributable to rule changes not reflected in the 
115.35  computation of special education base revenue, multiplied by the 
115.36  appropriate percentages from subdivision 2. 
116.1      (b) Notwithstanding paragraph (a), if the special education 
116.2   base revenue for a district equals zero, the special education 
116.3   revenue aid equals the amount computed according to subdivision 
116.4   2 using current year data. 
116.5      (c) Notwithstanding paragraphs (a) and (b), if the special 
116.6   education base revenue for a district is greater than zero, and 
116.7   the base year amount for the district under subdivision 2, 
116.8   paragraph (a), clause (7), equals zero, the special education 
116.9   revenue aid equals the sum of the amount computed according to 
116.10  paragraph (a), plus the amount computed according to subdivision 
116.11  2, paragraph (a), clause (7), using current year data. 
116.12     Sec. 60.  Minnesota Statutes 1998, section 125A.79, 
116.13  subdivision 1, is amended to read: 
116.14     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
116.15  section, the definitions in this subdivision apply. 
116.16     (a) "Unreimbursed special education cost" means the sum of 
116.17  the following: 
116.18     (1) expenditures for teachers' salaries, contracted 
116.19  services, supplies, equipment, and transportation services 
116.20  eligible for revenue under section 125A.76; plus 
116.21     (2) expenditures for tuition bills received under sections 
116.22  125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
116.23  under sections 125A.76, subdivision 2, and 124.3202, subdivision 
116.24  1; minus 
116.25     (3) revenue for teachers' salaries, contracted services, 
116.26  supplies, and equipment under sections 124.3202 and 124A.76; 
116.27  minus 
116.28     (4) tuition receipts under sections 125A.03 to 125A.24 and 
116.29  125A.65 for services eligible for revenue under sections 
116.30  124.3202, subdivision 1, and 124A.76, subdivision 2. 
116.31     (b) "General revenue" means for fiscal year 1996, the sum 
116.32  of the general education revenue according to section 126C.10, 
116.33  subdivision 1, as adjusted according to section 127A.47, 
116.34  subdivision 7, plus the total referendum revenue according to 
116.35  section 126C.17, subdivision 4.  For fiscal years 1997 and 
116.36  later, "general revenue" means the sum of the general education 
117.1   revenue according to section 126C.10, subdivision 1, as adjusted 
117.2   according to section 127A.47, subdivision subdivisions 7 and 8, 
117.3   plus the total referendum revenue minus transportation sparsity 
117.4   revenue minus total operating capital revenue. 
117.5      (c) "Average daily membership" has the meaning given it in 
117.6   section 126C.05. 
117.7      (d) "Program growth factor" means 1.044 for fiscal year 
117.8   2002 and 1.02 for fiscal year 2003 and later. 
117.9      Sec. 61.  Minnesota Statutes 1998, section 125A.79, 
117.10  subdivision 2, is amended to read: 
117.11     Subd. 2.  [EXCESS COST REVENUE AID, FISCAL YEARS 2000 AND 
117.12  2001.] For 1997 and later fiscal years 2000 and 2001, a 
117.13  district's special education excess cost revenue aid equals the 
117.14  greatest of: 
117.15     (a) 70 80 percent of the difference between (1) the 
117.16  district's unreimbursed special education cost and (2) 5.7 5.2 
117.17  percent for fiscal year 1997 and later years of the district's 
117.18  general revenue; 
117.19     (b) 70 percent of the difference between (1) the increase 
117.20  in the district's unreimbursed special education cost between 
117.21  the base year as defined in section 125A.76, subdivision 1, and 
117.22  the current year and (2) 1.6 percent of the district's general 
117.23  revenue; or 
117.24     (c) zero. 
117.25     Sec. 62.  Minnesota Statutes 1998, section 125A.79, 
117.26  subdivision 4, is amended to read: 
117.27     Subd. 4.  [TUITION.] Notwithstanding sections 125A.03 to 
117.28  125A.24 and 125A.65, for children who are nonresidents of 
117.29  Minnesota, receive services under section 125A.76, subdivisions 
117.30  1 and 2, and are placed in the serving school district by court 
117.31  action, and are from a state that does not have a reciprocity 
117.32  agreement with the commissioner under section 125A.115, the 
117.33  serving school district shall submit unreimbursed tuition bills 
117.34  for eligible services to the department of children, families, 
117.35  and learning instead of the resident school district.  To be 
117.36  eligible for reimbursement, the serving school district, as part 
118.1   of its child intake procedures, must demonstrate good faith 
118.2   effort to obtain from the placing agency a financial commitment 
118.3   to pay tuition costs.  The state shall not reimburse school 
118.4   districts under this section if there is a special education 
118.5   reciprocity agreement under section 125A.115 with the state of 
118.6   which the student is a resident.  
118.7      <i>(Effective Date:  Section 62 (125A.79, subdivision 4) is</i> 
118.8   <i>effective July 1, 2000.)</i> 
118.9      Sec. 63.  Minnesota Statutes 1998, section 125A.79, is 
118.10  amended by adding a subdivision to read: 
118.11     Subd. 5.  [INITIAL EXCESS COST AID.] For fiscal years 2002 
118.12  and later, a district's initial excess cost aid equals the 
118.13  greatest of: 
118.14     (1) 80 percent of the difference between (i) the district's 
118.15  unreimbursed special education cost and (ii) 5.2 percent of the 
118.16  district's general revenue; 
118.17     (2) 70 percent of the difference between (i) the increase 
118.18  in the district's unreimbursed special education cost between 
118.19  the base year as defined in section 125A.76, subdivision 1, and 
118.20  the current year and (ii) 1.6 percent of the district's general 
118.21  revenue; or 
118.22     (3) zero. 
118.23     Sec. 64.  Minnesota Statutes 1998, section 125A.79, is 
118.24  amended by adding a subdivision to read: 
118.25     Subd. 6.  [STATE TOTAL SPECIAL EDUCATION EXCESS COST 
118.26  AID.] The state total special education excess cost aid for 
118.27  fiscal year 2002 and later fiscal years equals: 
118.28     (1) the state total special education excess cost aid for 
118.29  the preceding fiscal year; times 
118.30     (2) the program growth factor; times 
118.31     (3) the ratio of the state total average daily membership 
118.32  for the current fiscal year to the state total average daily 
118.33  membership for the preceding fiscal year. 
118.34     Sec. 65.  Minnesota Statutes 1998, section 125A.79, is 
118.35  amended by adding a subdivision to read: 
118.36     Subd. 7.  [DISTRICT SPECIAL EDUCATION EXCESS COST AID.] A 
119.1   district's special education excess cost aid for fiscal year 
119.2   2002 and later equals the state total special education excess 
119.3   cost aid times the ratio of the district's initial excess cost 
119.4   aid to the state total initial excess cost aid. 
119.5      Sec. 66.  Minnesota Statutes 1998, section 125A.79, is 
119.6   amended by adding a subdivision to read: 
119.7      Subd. 8.  [OUT-OF-STATE TUITION.] For children who are 
119.8   residents of the state, receive services under section 125A.76, 
119.9   subdivisions 1 and 2, and are placed in a care and treatment 
119.10  facility by court action in a state that does not have a 
119.11  reciprocity agreement with the commissioner under section 
119.12  125A.115, the resident school district shall submit the balance 
119.13  of the tuition bills, minus the amount of the basic revenue, as 
119.14  defined by section 126C.10, subdivision 2, of the district for 
119.15  the child and the special education aid, and any other aid 
119.16  earned on behalf of the child. 
119.17     <i>(Effective Date:  Section 66 (125A.79, subdivision 8) is</i> 
119.18  <i>effective July 1, 2000.)</i> 
119.19     Sec. 67.  [125A.80] [UNIFORM BILLING SYSTEM FOR THE 
119.20  EDUCATION COSTS OF OUT-OF-HOME PLACED STUDENTS.] 
119.21     The commissioner shall implement a uniform billing system 
119.22  for school districts and other agencies, including private 
119.23  providers, who provide the educational services for students who 
119.24  are placed out of the home.  The uniform billing system must: 
119.25     (1) allow for the proper and timely billing to districts by 
119.26  service providers with a minimum amount of district 
119.27  administration; 
119.28     (2) allow districts to bill the state for certain types of 
119.29  special education and regular education services as provided by 
119.30  law; 
119.31     (3) provide flexibility for the types of services that are 
119.32  provided for children placed out of the home, including day 
119.33  treatment services; 
119.34     (4) allow the commissioner to track the type, cost, and 
119.35  quality of services provided for children placed out of the 
119.36  home; 
120.1      (5) conform existing special education and proposed regular 
120.2   education billing procedures; 
120.3      (6) provide a uniform reporting standard of per diem rates; 
120.4      (7) determine allowable expenses and maximum reimbursement 
120.5   rates for the state reimbursement of care and treatment services 
120.6   according to section 124D.701; and 
120.7      (8) provide a process for the district to appeal to the 
120.8   commissioner tuition bills submitted to districts and to the 
120.9   state. 
120.10     Sec. 68.  Minnesota Statutes 1998, section 126C.44, is 
120.11  amended to read: 
120.12     126C.44 [CRIME-RELATED COSTS LEVY.] 
120.13     For taxes levied in 1991 and subsequent years, payable in 
120.14  1992 and subsequent years, Each district may make a levy on all 
120.15  taxable property located within the district for the purposes 
120.16  specified in this subdivision.  The maximum amount which may be 
120.17  levied for all costs under this subdivision shall be equal to 
120.18  $1.50 $2 multiplied by the population of the school district. 
120.19  For purposes of this subdivision, "population" of the school 
120.20  district means the same as contained in section 275.14.  The 
120.21  proceeds of the levy must be used for directly funding the 
120.22  following purposes or for reimbursing the cities and counties 
120.23  who contract with the district for the following purposes:  (1) 
120.24  to pay the costs incurred for the salaries, benefits, and 
120.25  transportation costs of peace officers and sheriffs for liaison 
120.26  services in the district's middle and secondary schools; (2) to 
120.27  pay the costs for a drug abuse prevention program as defined in 
120.28  Minnesota Statutes 1991 Supplement, section 609.101, subdivision 
120.29  3, paragraph (f), in the elementary schools; or (3) to pay the 
120.30  costs for a gang resistance education training curriculum in the 
120.31  middle schools; or (4) to pay the costs for other crime 
120.32  prevention and drug abuse and violence prevention measures taken 
120.33  by the school district.  The district must initially attempt to 
120.34  contract for these services to be provided by peace officers or 
120.35  sheriffs with the police department of each city or the 
120.36  sheriff's department of the county within the district 
121.1   containing the school receiving the services.  If a local police 
121.2   department or a county sheriff's department does not wish to 
121.3   provide the necessary services, the district may contract for 
121.4   these services with any other police or sheriff's department 
121.5   located entirely or partially within the school district's 
121.6   boundaries.  The levy authorized under this subdivision is not 
121.7   included in determining the school district's levy limitations. 
121.8      Sec. 69.  [127A.11] [MONITOR MEDICAL ASSISTANCE SERVICES 
121.9   FOR DISABLED STUDENTS.] 
121.10     The commissioner of children, families, and learning, in 
121.11  cooperation with the commissioner of human services, shall 
121.12  monitor the costs of health-related, special education services 
121.13  provided by public schools. 
121.14     <i>(Effective Date:  Section 69 (127A.11) is effective July 1,</i> 
121.15  <i>2000.)</i> 
121.16     Sec. 70.  Minnesota Statutes 1998, section 127A.47, 
121.17  subdivision 2, is amended to read: 
121.18     Subd. 2.  [REPORTING; REVENUE FOR HOMELESS.] For all school 
121.19  purposes, unless otherwise specifically provided by law, a 
121.20  homeless pupil is a resident of the school district in which the 
121.21  homeless shelter or other program, center, or facility assisting 
121.22  the homeless pupil or the pupil's family is located that enrolls 
121.23  the pupil. 
121.24     Sec. 71.  Minnesota Statutes 1998, section 241.021, 
121.25  subdivision 1, is amended to read: 
121.26     Subdivision 1.  [SUPERVISION OVER CORRECTIONAL 
121.27  INSTITUTIONS.] (1) The commissioner of corrections shall inspect 
121.28  and license all correctional facilities throughout the state, 
121.29  whether public or private, established and operated for the 
121.30  detention and confinement of persons detained or confined 
121.31  therein according to law except to the extent that they are 
121.32  inspected or licensed by other state regulating agencies.  The 
121.33  commissioner shall promulgate pursuant to chapter 14, rules 
121.34  establishing minimum standards for these facilities with respect 
121.35  to their management, operation, physical condition, and the 
121.36  security, safety, health, treatment, and discipline of persons 
122.1   detained or confined therein.  Commencing September 1, 1980, no 
122.2   individual, corporation, partnership, voluntary association, or 
122.3   other private organization legally responsible for the operation 
122.4   of a correctional facility may operate the facility unless 
122.5   licensed by the commissioner of corrections.  The commissioner 
122.6   shall review the correctional facilities described in this 
122.7   subdivision at least once every biennium, except as otherwise 
122.8   provided herein, to determine compliance with the minimum 
122.9   standards established pursuant to this subdivision.  The 
122.10  commissioner shall grant a license to any facility found to 
122.11  conform to minimum standards or to any facility which, in the 
122.12  commissioner's judgment, is making satisfactory progress toward 
122.13  substantial conformity and the interests and well-being of the 
122.14  persons detained or confined therein are protected.  The 
122.15  commissioner may grant licensure up to two years.  The 
122.16  commissioner shall have access to the buildings, grounds, books, 
122.17  records, staff, and to persons detained or confined in these 
122.18  facilities.  The commissioner may require the officers in charge 
122.19  of these facilities to furnish all information and statistics 
122.20  the commissioner deems necessary, at a time and place designated 
122.21  by the commissioner.  The commissioner may require that any or 
122.22  all such information be provided through the department of 
122.23  corrections detention information system.  The education program 
122.24  offered in a correctional facility for the detention or 
122.25  confinement of juvenile offenders must be approved by the 
122.26  commissioner of children, families, and learning before the 
122.27  commissioner of corrections may grant a license to the facility. 
122.28     (2) Any state agency which regulates, inspects, or licenses 
122.29  certain aspects of correctional facilities shall, insofar as is 
122.30  possible, ensure that the minimum standards it requires are 
122.31  substantially the same as those required by other state agencies 
122.32  which regulate, inspect, or license the same aspects of similar 
122.33  types of correctional facilities, although at different 
122.34  correctional facilities. 
122.35     (3) Nothing in this section shall be construed to limit the 
122.36  commissioner of corrections' authority to promulgate rules 
123.1   establishing standards of eligibility for counties to receive 
123.2   funds under sections 401.01 to 401.16, or to require counties to 
123.3   comply with operating standards the commissioner establishes as 
123.4   a condition precedent for counties to receive that funding. 
123.5      (4) When the commissioner finds that any facility described 
123.6   in clause (1), except foster care facilities for delinquent 
123.7   children and youth as provided in subdivision 2, does not 
123.8   substantially conform to the minimum standards established by 
123.9   the commissioner and is not making satisfactory progress toward 
123.10  substantial conformance, the commissioner shall promptly notify 
123.11  the chief executive officer and the governing board of the 
123.12  facility of the deficiencies and order that they be remedied 
123.13  within a reasonable period of time.  The commissioner may by 
123.14  written order restrict the use of any facility which does not 
123.15  substantially conform to minimum standards to prohibit the 
123.16  detention of any person therein for more than 72 hours at one 
123.17  time.  When, after due notice and hearing, the commissioner 
123.18  finds that any facility described in this subdivision, except 
123.19  county jails and lockups as provided in sections 641.26, 642.10, 
123.20  and 642.11, does not conform to minimum standards, or is not 
123.21  making satisfactory progress toward substantial compliance 
123.22  therewith, the commissioner may issue an order revoking the 
123.23  license of that facility.  After revocation of its license, that 
123.24  facility shall not be used until its license is renewed.  When 
123.25  the commissioner is satisfied that satisfactory progress towards 
123.26  substantial compliance with minimum standard is being made, the 
123.27  commissioner may, at the request of the appropriate officials of 
123.28  the affected facility supported by a written schedule for 
123.29  compliance, grant an extension of time for a period not to 
123.30  exceed one year. 
123.31     (5) As used in this subdivision, "correctional facility" 
123.32  means any facility, including a group home, having a residential 
123.33  component, the primary purpose of which is to serve persons 
123.34  placed therein by a court, court services department, parole 
123.35  authority, or other correctional agency having dispositional 
123.36  power over persons charged with, convicted, or adjudicated to be 
124.1   guilty or delinquent. 
124.2      <i>(Effective Date:  Section 71 (241.021, subdivision 1) is</i> 
124.3   <i>effective July 1, 2000.)</i> 
124.4      Sec. 72.  Minnesota Statutes 1998, section 245A.04, is 
124.5   amended by adding a subdivision to read: 
124.6      Subd. 11.  [EDUCATION PROGRAM; ADDITIONAL REQUIREMENT.] The 
124.7   education program offered in a residential or nonresidential 
124.8   program, except for child care, foster care, or services for 
124.9   adults, must be approved by the commissioner of children, 
124.10  families, and learning before the commissioner of human services 
124.11  may grant a license to the program. 
124.12     <i>(Effective Date:  Section 72 (245.04, subdivision 11) is</i> 
124.13  <i>effective July 1, 2000).</i> 
124.14     Sec. 73.  Laws 1993, chapter 224, article 3, section 32, as 
124.15  amended by Laws 1998, chapter 398, article 2, section 47, is 
124.16  amended to read: 
124.17     Sec. 32.  [ASL GUIDELINES.] 
124.18     (a) In determining appropriate licensure requirements for 
124.19  teachers of deaf and hard of hearing students under Minnesota 
124.20  Statutes, section 125.189 122A.28, subdivision 1, the board of 
124.21  teaching shall develop the requirements according to the 
124.22  guidelines described in this section. 
124.23     (b) Each teacher must complete the American sign language 
124.24  sign communication proficiency interview or a comparable 
124.25  American sign language evaluation that the board of teaching, 
124.26  the Minnesota association of deaf citizens, and the Minnesota 
124.27  council for the hearing impaired accept as a means for 
124.28  establishing the teacher's baseline level of American sign 
124.29  language skills.  A teacher shall not be charged for this 
124.30  evaluation. 
124.31     (c) Each teacher must complete 60 continuing education 
124.32  credits in American sign language, American sign language 
124.33  linguistics, or deaf culture for every 120 continuing education 
124.34  credits the teacher is required to complete to renew a teaching 
124.35  license. 
124.36     (d) In order to obtain an initial license to teach deaf and 
125.1   hard of hearing students, or to apply for a Minnesota teaching 
125.2   license, after being licensed to teach in another state, a 
125.3   person must demonstrate in the sign communication proficiency 
125.4   interview an intermediate plus level of proficiency in American 
125.5   sign language. 
125.6      (e) Each teacher applying to renew a teaching license must 
125.7   take the American sign language sign communication proficiency 
125.8   interview or a comparable American sign language evaluation 
125.9   every five years until the teacher demonstrates a minimum, or 
125.10  survival plus, level of proficiency in American sign language. 
125.11     (f) A teacher working directly with students whose primary 
125.12  language is American sign language should demonstrate at least 
125.13  an advanced level of proficiency in American sign language.  The 
125.14  board should not consider a minimum, or survival plus, level of 
125.15  proficiency adequate for providing direct instruction to 
125.16  students whose primary language is American sign language. 
125.17     (g) To renew a teaching license, a teacher must comply with 
125.18  paragraphs (c) and (e) in addition to other applicable board 
125.19  requirements.  A teacher's ability to demonstrate a minimum, or 
125.20  survival plus, level of proficiency in American sign language is 
125.21  not a condition for renewing the teacher's license. 
125.22     (h) A teacher who demonstrates an increased proficiency in 
125.23  American sign language skill in the American sign language sign 
125.24  communication proficiency interview or a comparable American 
125.25  sign language evaluation shall receive credit toward completing 
125.26  the requirements of paragraph (c).  The number of continuing 
125.27  education credits the teacher receives is based on the teacher's 
125.28  increased level of proficiency from the teacher's baseline level:
125.29     (1) 35 continuing education credits for demonstrating an 
125.30  intermediate level of proficiency; 
125.31     (2) 40 continuing education credits for demonstrating an 
125.32  intermediate plus level of proficiency; 
125.33     (3) 45 continuing education credits for demonstrating an 
125.34  advanced level of proficiency; 
125.35     (4) 50 continuing education credits for demonstrating an 
125.36  advanced plus level of proficiency; 
126.1      (5) 55 continuing education credits for demonstrating a 
126.2   superior level of proficiency; and 
126.3      (6) 60 continuing education credits for demonstrating a 
126.4   superior plus level of proficiency. 
126.5      (i) This section shall not apply to teachers of oral/aural 
126.6   deaf education. 
126.7      Sec. 74.  Laws 1997, First Special Session chapter 4, 
126.8   article 2, section 48, is amended to read: 
126.9      Sec. 48.  [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 
126.10  HOMELESS CHILDREN.] 
126.11     A school district or a nonprofit entity contracting with a 
126.12  school district to provide education and transition services for 
126.13  homeless children is eligible for a matching grant for capital 
126.14  facilities which serve homeless children and their families.  
126.15  Grant proceeds may be used to design, furnish, equip, acquire, 
126.16  repair, or construct a facility for providing education and 
126.17  transition services for homeless pupils.  To obtain a grant, a 
126.18  school district or nonprofit entity must submit an application 
126.19  to the commissioner of children, families, and learning in the 
126.20  form and manner the commissioner establishes.  Grants must be 
126.21  matched by $1 of nonstate money for every $1 $2 of grant money 
126.22  received.  The commissioner shall take into consideration the 
126.23  number of concentration of homeless children served by a school 
126.24  district when awarding grants.  The commissioner may award 
126.25  matching grants of up to $500,000 per school district. 
126.26     Sec. 75.  Laws 1997, First Special Session chapter 4, 
126.27  article 2, section 51, subdivision 29, as amended by Laws 1998, 
126.28  chapter 398, article 2, section 52, is amended to read: 
126.29     Subd. 29.  [FIRST GRADE PREPAREDNESS.] (a) For grants for 
126.30  the first grade preparedness program under Minnesota Statutes, 
126.31  section 124.2613, and for school sites that have provided a 
126.32  full-day kindergarten option for kindergarten students enrolled 
126.33  in fiscal years 1996 and 1997: 
126.34       $5,000,000     .....     1998 
126.35       $6,500,000     .....     1999 
126.36     (b) $4,200,000 in fiscal year 1998 must be distributed 
127.1   according to Minnesota Statutes, section 124.2613, subdivision 
127.2   3, and $4,200,000 in fiscal year 1999 must be distributed 
127.3   according to Minnesota Statutes, section 124D.081, subdivision 3.
127.4      (c) $800,000 in fiscal year 1998 must be divided equally 
127.5   among the four geographic regions defined in Minnesota Statutes, 
127.6   section 124.2613, subdivision 3, and $800,000 in fiscal year 
127.7   1999 must be divided equally among the four geographic regions 
127.8   defined in Minnesota Statutes, section 124D.081, subdivision 3, 
127.9   and must first be used to provide funding for school sites that 
127.10  offered an optional full-day kindergarten program during the 
127.11  1996-1997 school year, but did not receive funding for fiscal 
127.12  year 1997 under Minnesota Statutes, section 124.2613.  To be a 
127.13  qualified site, licensed teachers must have taught the optional 
127.14  full-day kindergarten classes.  A district that charged a fee 
127.15  for students participating in an optional full-day program is 
127.16  eligible to receive the grant to provide full-day kindergarten 
127.17  for all students as required by Minnesota Statutes, section 
127.18  124.2613 124D.08, subdivision 4.  Districts with eligible sites 
127.19  must apply to the commissioner of children, families, and 
127.20  learning for a grant. 
127.21     (c) This appropriation must first be used to fund programs 
127.22  operating during the 1996-1997 school year under paragraph (b) 
127.23  and Minnesota Statutes, section 124.2613.  Any remaining funds 
127.24  may be used to expand the number of sites providing first grade 
127.25  preparedness programs according to Minnesota Statutes, section 
127.26  124D.081, subdivision 3. 
127.27     (d) $1,500,000 in fiscal year 1999 shall be divided equally 
127.28  among the four geographic regions defined in Minnesota Statutes, 
127.29  section 124D.081, subdivision 3, and must first be used to 
127.30  eliminate aid proration for sites qualifying under paragraphs 
127.31  (b) and (c).  Any remaining funds may be used to expand the 
127.32  number of sites providing first grade preparedness programs 
127.33  according to Minnesota Statutes, section 124.2613, subdivision 3.
127.34     <i>(Effective Date:  Section 75 (Laws 1997, First Special</i> 
127.35  <i>Session chapter 4, article 2, section 51, subdivision 29) is</i> 
127.36  <i>effective the day following final enactment.)</i> 
128.1      Sec. 76.  Laws 1998, chapter 398, article 2, section 53, is 
128.2   amended to read: 
128.3      Sec. 53.  [RULES AFFECTING SPECIAL EDUCATION INSTRUCTION 
128.4   AND SERVICES.] 
128.5      (a) The state board of education must shall amend all the 
128.6   rules in paragraph (c) relating to providing special instruction 
128.7   and services to children with a disability so that the rules do 
128.8   not impose requirements that exceed federal law.  Consistent 
128.9   with the report from the commissioner to compare federal and 
128.10  state special education law, the state board may use the 
128.11  expedited process under Minnesota Statutes 1997, section 14.389, 
128.12  to amend these rules. 
128.13     (b) As of July 1, 1999, any the rules in paragraph (c) 
128.14  relating to providing special instruction and services to 
128.15  children with a disability are invalid to the extent they exceed 
128.16  the requirements in federal law unless a law is enacted before 
128.17  July 1, 1999, indicating the intent of the state to exceed one 
128.18  or more federal requirements. 
128.19     (c) The state board shall amend the following rules 
128.20  according to this section:  Minnesota Rules, parts 3525.0200; 
128.21  3525.0550; 3525.1100, subpart 2, item D; 3525.1329; 3525.2325; 
128.22  3525.2385; 3525.2470; 3525.2550; 3525.2750; 3525.2900; 
128.23  3525.3300; and 3525.3700. 
128.24     Sec. 77.  [DESIGN AND IMPLEMENTATION OF UNIFORM BILLING 
128.25  SYSTEM.] 
128.26     The commissioner of children, families, and learning shall 
128.27  design a uniform billing system according to Minnesota Statutes, 
128.28  section 125A.80.  In designing a system, the commissioner shall 
128.29  seek the input from the appropriate users of the billing system. 
128.30     The commissioner shall implement a uniform billing system 
128.31  for education services for children placed out of the home, 
128.32  according to Minnesota Statutes, section 125A.80, by July 1, 
128.33  2000.  The commissioner shall provide training to school 
128.34  districts on the uniform billing system. 
128.35     Sec. 78.  [COMMUNITY INTERVENTION AND PREVENTION GRANTS.] 
128.36     Subdivision 1.  [GRANT PROGRAM.] The commissioner of 
129.1   children, families, and learning shall establish a community 
129.2   intervention and prevention grant program for fiscal year 2000 
129.3   for grants to nonprofit organizations, school districts or 
129.4   school sites, or other community groups to provide 
129.5   education-related services to at-risk children and their 
129.6   families.  Grants are available to programs that: 
129.7      (1) enhance youth outreach services and link children to 
129.8   activities, programs, and clubs outside of the regular school 
129.9   day or year; 
129.10     (2) create partnerships between culturally based community 
129.11  organizations, parents, and school sites; 
129.12     (3) provide parent and community support for families with 
129.13  deaf or hard-of-hearing children; 
129.14     (4) provide mentoring, tutoring, and early education 
129.15  development for at-risk children, children who speak English as 
129.16  a second language, or children with disabilities; 
129.17     (5) provide services to children and their families who 
129.18  require case management and counseling services due to 
129.19  educational barriers related to economics, language, 
129.20  transportation, illness, isolation, or disability; 
129.21     (6) designate an individual teacher to provide family 
129.22  connection services for children that emphasizes each individual 
129.23  child's unique learning and development needs; 
129.24     (7) establish community-based education programs through a 
129.25  collaboration of the local school district, city, and 
129.26  community-based organizations; or 
129.27     (8) assist newly arrived immigrants ages 12 to 24 in 
129.28  becoming literate and acquiring vocational skills. 
129.29     Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
129.30  school or school district, a nonprofit community-based 
129.31  organization, a city, or a collaboration of one or more of these 
129.32  groups. 
129.33     Subd. 3.  [APPLICATION PROCESS.] To obtain a grant, an 
129.34  applicant must submit an application to the commissioner in the 
129.35  form and manner established by the commissioner.  The 
129.36  application must describe how the applicant will meet one or 
130.1   more of the outcomes described in subdivision 1. 
130.2      Subd. 4.  [GRANT AWARDS.] The commissioner may award grants 
130.3   to applicants who meet the requirements of this section.  The 
130.4   commissioner must base the amount of the grant on the number of 
130.5   children and families expected to participate in the program. 
130.6      Sec. 79.  [RECOMMENDATIONS FOR A SYSTEM TO APPROVE 
130.7   EDUCATION PROGRAMS SERVING CHILDREN AT CARE AND TREATMENT 
130.8   FACILITIES.] 
130.9      Subdivision 1.  [TASK FORCE MEMBERSHIP.] The commissioner 
130.10  of children, families, and learning shall convene a task force 
130.11  to make recommendations on a system to approve education 
130.12  programs serving children at care and treatment facilities, 
130.13  including detention facilities.  The task force shall be chaired 
130.14  by a representative of the department of children, families, and 
130.15  learning and, at a minimum, must include representatives from 
130.16  each of the following organizations:  the department of human 
130.17  services, the department of corrections, the Minnesota school 
130.18  boards association, the Minnesota association of school 
130.19  administrators, Education Minnesota, association of Minnesota 
130.20  counties, Minnesota county attorney association, conference of 
130.21  chief judges, and the Minnesota council of child caring agencies.
130.22     By February 1, 2000, the commissioner shall submit the task 
130.23  force's recommendations to the education committees of the 
130.24  legislature.  The task force sunsets on February 1, 2000.  
130.25     Subd. 2.  [RECOMMENDATIONS TO THE COMMISSIONER OF CHILDREN, 
130.26  FAMILIES, AND LEARNING.] The task force shall consider the 
130.27  following in making recommendations to the department of 
130.28  children, families, and learning to implement a system to 
130.29  approve education programs serving children at care and 
130.30  treatment facilities, including detention facilities: 
130.31     (1) minimal education standards consistent with state 
130.32  graduation requirements that meet the individual needs of 
130.33  children ages 6 to 21 served at care and treatment facilities, 
130.34  unless the child has withdrawn from school or has received a 
130.35  diploma; 
130.36     (2) minimal average daily hour of education instruction; 
131.1      (3) that state-approved education programs will employ or 
131.2   contract with licensed teachers or community experts as defined 
131.3   by the state board of teaching; 
131.4      (4) how the education program will work together with the 
131.5   district that the facility is located in and the district of 
131.6   residence to provide or contract for education services when 
131.7   possible; 
131.8      (5) uniform educational assessment and screening procedures 
131.9   to be used at the care and treatment facility before the child's 
131.10  educational program can begin; 
131.11     (6) that educational plans, based on the assessment of the 
131.12  child, will be used to determine the educational services for 
131.13  the child placed in a care and treatment facility; 
131.14     (7) appropriate and consistent educational services to be 
131.15  implemented related to the type of facility and placement of the 
131.16  child; 
131.17     (8) the level of monitoring and enforcement by the 
131.18  department of children, families, and learning to ensure the 
131.19  necessary oversight of the educational program; 
131.20     (9) uniform procedures for transferring student records, 
131.21  which are consistent with state and federal data practices laws; 
131.22     (10) how the educational needs of the child will be 
131.23  considered in the placement of the child; 
131.24     (11) appropriate timelines for the department of children, 
131.25  families, and learning to approve initial and continuing 
131.26  education programs; and 
131.27     (12) whether separate requirements are needed for 
131.28  facilities that provide education services through the school 
131.29  district and for facilities that provide educational services 
131.30  without the assistance of a school district. 
131.31     Sec. 80.  [COMMISSIONER TO RECOMMEND OPTIONS ON SPECIAL 
131.32  EDUCATION FUNDING FORMULAS.] 
131.33     The commissioner of children, families, and learning shall 
131.34  make recommendations to the legislature about different options 
131.35  for a pupil-based special education funding formula.  The 
131.36  commissioner shall consult with special education stake-holders 
132.1   and with other states that have adopted a pupil-based special 
132.2   education funding formula.  The commissioner shall consider the 
132.3   following in examining a pupil-based special education funding 
132.4   formula that: 
132.5      (1) minimizes the distributional effect of various 
132.6   pupil-based formulas as compared to the current formula; 
132.7      (2) minimizes data requirements and recordkeeping by 
132.8   districts; 
132.9      (3) provides comparable resources for comparable students; 
132.10     (4) provides districts with flexibility to deal with unique 
132.11  conditions in a cost-effective manner; 
132.12     (5) minimizes the incentive for districts to over-identify 
132.13  students for special services or to classify students in a 
132.14  higher cost disability level; and 
132.15     (6) provides basic special education funding as well as 
132.16  absorbing unique excess costs. 
132.17     The commissioner shall report its findings to the education 
132.18  committees of the legislature by December 1, 1999. 
132.19     Sec. 81.  [SPECIAL EDUCATION RULES.] 
132.20     The commissioner shall adopt rules to update Minnesota 
132.21  Rules, chapter 3525, for special education.  Provisions of this 
132.22  chapter that exceed federal requirements are deemed valid for 
132.23  the purposes of providing special instruction and services to 
132.24  children with a disability.  In addition to technical changes, 
132.25  corrections, clarifications, and similarly needed revisions, 
132.26  specific rules shall be modified or repealed as indicated below: 
132.27     (1) to Minnesota Rules, part 3525.0200, add definition of 
132.28  caseload; 
132.29     (2) revise Minnesota Rules, part 3525.0550, to update role 
132.30  of IEP manager; 
132.31     (3) repeal Minnesota Rules, part 3525.1100, subpart 2, item 
132.32  D, on parent advisory council as duplicative; 
132.33     (4) to Minnesota Rules, part 3525.1329, amend eligibility 
132.34  criteria for emotional or behavior disorders so that the 
132.35  standards reflect severe emotional disorder and professional 
132.36  standards; 
133.1      (5) amend Minnesota Rules, part 3525.2325, to revise 
133.2   outdated standards for students placed for care and treatment to 
133.3   be compatible with related legislation; 
133.4      (6) repeal Minnesota Rules, part 3525.2550, on conduct 
133.5   before assessment except for subpart 2, item C; 
133.6      (7) add a rule to make the responsibilities of the IEP team 
133.7   for assessment, IEP development, and placement decisions 
133.8   consistent with federal requirements; 
133.9      (8) repeal Minnesota Rules, part 3525.2750, on educational 
133.10  assessment as duplicative; 
133.11     (9) repeal Minnesota Rules, part 3525.2900, on IEP 
133.12  development and content except for subparts 4 and 5 on regulated 
133.13  interventions; and 
133.14     (10) repeal Minnesota Rules, part 3525.3300, except item B, 
133.15  on contents of notice as duplicative.  
133.16     Sec. 82.  [SPECIAL EDUCATION RULES; EXPEDITED PROCESS.] 
133.17     Beginning no later than July 1, 1999, the commissioner 
133.18  shall amend Minnesota Rules, chapter 3525, for special education 
133.19  using the expedited process under Minnesota Statutes 1998, 
133.20  section 14.389.  In addition to technical changes, corrections, 
133.21  clarifications, and similarly needed revisions, specific rules 
133.22  shall be modified or repealed as indicated below: 
133.23     (1) repeal Minnesota Rules, part 3525.0200, subpart 6a, on 
133.24  definition of IEP; 
133.25     (2) repeal Minnesota Rules, part 3525.0200, subpart 11a, on 
133.26  definition of parent; 
133.27     (3) amend Minnesota Rules, part 3525.0750, to include 
133.28  children enrolled in nonpublic schools for child find purposes; 
133.29     (4) amend Minnesota Rules, part 3525.0800, subpart 8, on 
133.30  district responsibility for choice options in accordance with 
133.31  legislation; 
133.32     (5) amend Minnesota Rules, part 3525.0800, subpart 9, on 
133.33  district responsibility for upper age limit in accordance with 
133.34  legislation; 
133.35     (6) repeal Minnesota Rules, part 3525.1150; 
133.36     (7) amend Minnesota Rules, part 3525.1310, to add program 
134.1   coordination and due process facilitation to list of 
134.2   reimbursable activities; 
134.3      (8) amend Minnesota Rules, part 3525.1325, to revise 
134.4   eligibility criteria for autism to reflect professional 
134.5   standards; 
134.6      (9) amend Minnesota Rules, part 3525.1327, to make minor 
134.7   revisions necessary to update eligibility criteria for 
134.8   deaf-blindness; 
134.9      (10) amend Minnesota Rules, part 3525.1331, to make minor 
134.10  revisions necessary to update eligibility criteria for deaf and 
134.11  hard of hearing; 
134.12     (11) amend Minnesota Rules, part 3525.1333, to revise 
134.13  eligibility criteria for cognitive impairment to reflect 
134.14  professional standards; 
134.15     (12) amend Minnesota Rules, part 3525.1335, to revise 
134.16  eligibility criteria for other health-impaired to reflect 
134.17  professional standards; 
134.18     (13) amend Minnesota Rules, part 3525.1337, to make minor 
134.19  revisions necessary to update eligibility criteria for physical 
134.20  impairment; 
134.21     (14) amend Minnesota Rules, part 3525.1341, to make minor 
134.22  revisions necessary to update eligibility criteria for specific 
134.23  learning disability; 
134.24     (15) amend Minnesota Rules, part 3525.1343, to make minor 
134.25  revisions necessary to update eligibility criteria for speech 
134.26  and language impairments; 
134.27     (16) amend Minnesota Rules, part 3525.1345, to make minor 
134.28  revisions necessary to update eligibility criteria for blind and 
134.29  vision impaired; 
134.30     (17) amend Minnesota Rules, part 3525.1350, to make minor 
134.31  revisions necessary to update eligibility criteria for early 
134.32  childhood:  special education; 
134.33     (18) amend Minnesota Rules, part 3525.1352, to make minor 
134.34  revisions necessary to update eligibility criteria for 
134.35  developmental adapted physical education:  special education; 
134.36     (19) amend Minnesota Rules, part 3525.1354, to repeal 
135.1   subpart 2 to drop documentation requirement on override 
135.2   decisions; 
135.3      (20) repeal Minnesota Rules, part 3525.1356, on exit 
135.4   procedures; 
135.5      (21) amend Minnesota Rules, part 3525.2335, to make minor 
135.6   revisions to update standards for early childhood program 
135.7   options, and repeal subpart 2, item C; 
135.8      (22) amend Minnesota Rules, part 3525.2340, to revise 
135.9   caseload standard for young children to clarify how caseload is 
135.10  determined and to reflect supervision and safety needs of very 
135.11  small children in various settings; 
135.12     (23) amend Minnesota Rules, part 3525.2405, to repeal 
135.13  subparts 2 and 3 on reimbursement standards for directors of 
135.14  special education; 
135.15     (24) repeal Minnesota Rules, part 3525.2420, on variance 
135.16  request for director of special education; 
135.17     (25) repeal Minnesota Rules, part 3525.2650, as duplicative 
135.18  notice requirements; 
135.19     (26) repeal Minnesota Rules, part 3525.3000, on periodic 
135.20  reviews and documentation requirement; 
135.21     (27) repeal Minnesota Rules, part 3525.3150, as duplicative 
135.22  diploma requirements; 
135.23     (28) repeal Minnesota Rules, part 3525.3200, as duplicative 
135.24  notice requirement; 
135.25     (29) amend Minnesota Rules, part 3525.3500, to repeal 
135.26  duplicative notice requirements and mandate for districts to 
135.27  initiate a hearing when refusing request for assessment; and 
135.28     (30) amend Minnesota Rules, parts 3525.3800 to 3525.4700, 
135.29  on due process hearings to make them compatible with state and 
135.30  federal legislation. 
135.31     Sec. 83.  [APPROPRIATIONS.] 
135.32     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
135.33  LEARNING.] The sums indicated in this section are appropriated 
135.34  from the general fund to the department of children, families, 
135.35  and learning for the fiscal years designated.  
135.36     Subd. 2.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 
136.1   For grants to American Indian language and culture education 
136.2   programs according to Minnesota Statutes, section 124D.81, 
136.3   subdivision 1: 
136.4        $730,000     .....     2000
136.5        $730,000     .....     2001
136.6      The 2000 appropriation includes $73,000 for 1999 and 
136.7   $657,000 for 2000.  
136.8      The 2001 appropriation includes $73,000 for 2000 and 
136.9   $657,000 for 2001.  
136.10     Any balance in the first year does not cancel but is 
136.11  available in the second year. 
136.12     Subd. 3.  [AMERICAN INDIAN EDUCATION.] (a) For certain 
136.13  American Indian education programs in school districts: 
136.14       $175,000     .....     2000
136.15       $175,000     .....     2001
136.16     The 2000 appropriation includes $17,000 for 1999 and 
136.17  $158,000 for 2000.  
136.18     The 2001 appropriation includes $17,000 for 2000 and 
136.19  $158,000 for 2001.  
136.20     (b) These appropriations are available for expenditure with 
136.21  the approval of the commissioner of the department of children, 
136.22  families, and learning. 
136.23     (c) The commissioner must not approve the payment of any 
136.24  amount to a school district or school under this subdivision 
136.25  unless that school district or school is in compliance with all 
136.26  applicable laws of this state. 
136.27     (d) Up to the following amounts may be distributed to the 
136.28  following schools and school districts for each fiscal year:  
136.29  $54,800 Pine Point School; $9,800 to independent school district 
136.30  No. 166, Cook county; $14,900 to independent school district No. 
136.31  432, Mahnomen; $14,200 to independent school district No. 435, 
136.32  Waubun; $42,200 to independent school district No. 707, Nett 
136.33  Lake; and $39,100 to independent school district No. 38, Red 
136.34  Lake.  These amounts must be spent only for the benefit of 
136.35  American Indian pupils and to meet established state educational 
136.36  standards or statewide requirements. 
137.1      (e) Before a district or school can receive money under 
137.2   this subdivision, the district or school must submit, to the 
137.3   commissioner, evidence that it has complied with the uniform 
137.4   financial accounting and reporting standards act, Minnesota 
137.5   Statutes, sections 123B.75 to 123B.83. 
137.6      Subd. 4.  [AMERICAN INDIAN POST-SECONDARY PREPARATION 
137.7   GRANTS.] For American Indian post-secondary preparation grants 
137.8   according to Minnesota Statutes, section 124D.85: 
137.9        $982,000     .....     2000
137.10       $982,000     .....     2001
137.11     Any balance in the first year does not cancel but is 
137.12  available in the second year. 
137.13     Subd. 5.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
137.14  Indian scholarships according to Minnesota Statutes, section 
137.15  124D.84: 
137.16       $1,875,000   .....     2000 
137.17       $1,875,000   .....     2001 
137.18     Any balance in the first year does not cancel but is 
137.19  available in the second year. 
137.20     Subd. 6.  [INDIAN TEACHER PREPARATION GRANTS.] (a) For 
137.21  joint grants to assist Indian people to become teachers: 
137.22       $190,000     .....     2000 
137.23       $190,000     .....     2001 
137.24     (b) Up to $70,000 each year is for a joint grant to the 
137.25  University of Minnesota at Duluth and independent school 
137.26  district No. 709, Duluth. 
137.27     (c) Up to $40,000 each year is for a joint grant to each of 
137.28  the following: 
137.29     (1) Bemidji state university and independent school 
137.30  district No. 38, Red Lake; 
137.31     (2) Moorhead state university and a school district located 
137.32  within the White Earth reservation; and 
137.33     (3) Augsburg college, independent school district No. 625, 
137.34  St. Paul, and special school district No. 1, Minneapolis. 
137.35     (d) Money not used for students at one location may be 
137.36  transferred for use at another location. 
138.1      (e) Any balance in the first year does not cancel but is 
138.2   available in the second year. 
138.3      Subd. 7.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
138.4   school aid according to Minnesota Statutes, section 124D.83: 
138.5        $2,706,000  .....     2000
138.6        $2,790,000  .....     2001
138.7      The 2000 appropriation includes $283,000 for 1999 and 
138.8   $2,423,000 for 2000. 
138.9      The 2001 appropriation includes $269,000 for 2000 and 
138.10  $2,521,000 for 2001. 
138.11     Subd. 8.  [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For 
138.12  early childhood family education programs at tribal contract 
138.13  schools: 
138.14       $68,000     .....     2000 
138.15       $68,000     .....     2001 
138.16     Subd. 9.  [MAGNET SCHOOL GRANTS.] For magnet school and 
138.17  program grants: 
138.18       $1,750,000  .....     2000 
138.19       $1,750,000  .....     2001 
138.20     These amounts may be used for magnet school programs 
138.21  according to Minnesota Statutes, section 124D.88. 
138.22     Subd. 10.  [INTEGRATION PROGRAMS.] For grants according to: 
138.23  minority fellowship grants according to Laws 1994, chapter 647, 
138.24  article 8, section 29; minority teacher incentives according to 
138.25  Minnesota Statutes, section 122A.65; teachers of color grants 
138.26  according to Minnesota Statutes, section 122A.64; and cultural 
138.27  exchange grants according to Minnesota Statutes, section 124D.89:
138.28       $1,000,000     .....     2000
138.29       $1,000,000     .....     2001
138.30     Any balance in the first year does not cancel but is 
138.31  available in the second year. 
138.32     In awarding teacher of color grants, priority must be given 
138.33  to districts that have students who are currently in the process 
138.34  of completing their academic program. 
138.35     Subd. 11.  [SPECIAL EDUCATION AID.] For special education 
138.36  aid according to Minnesota Statutes, section 125A.75: 
139.1        $432,451,000   .....     2000 
139.2        $436,834,000   .....     2001 
139.3      The 2000 appropriation includes $39,330,000 for 1999 and 
139.4   $393,151,000 for 2000.  
139.5      The 2001 appropriation includes $43,683,000 for 2000 and 
139.6   $393,151,000 for 2001.  
139.7      Subd. 12.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
139.8   according to Minnesota Statutes, section 125A.75, subdivision 3, 
139.9   for children with a disability placed in residential facilities 
139.10  within the district boundaries for whom no district of residence 
139.11  can be determined: 
139.12       $  443,000   .....     2000 
139.13       $1,064,000   .....     2001 
139.14     If the appropriation for either year is insufficient, the 
139.15  appropriation for the other year is available.  Any balance in 
139.16  the first year does not cancel but is available in the second 
139.17  year. 
139.18     Subd. 13.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
139.19  teacher travel for home-based services according to Minnesota 
139.20  Statutes, section 125A.75, subdivision 1: 
139.21       $133,000     .....     2000 
139.22       $139,000     .....     2001 
139.23     The 2000 appropriation includes $11,000 for 1999 and 
139.24  $122,000 for 2000.  
139.25     The 2001 appropriation includes $13,000 for 2000 and 
139.26  $126,000 for 2001.  
139.27     Subd. 14.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
139.28  cost aid: 
139.29       $56,659,000    .....     2000 
139.30       $84,838,000    .....     2001 
139.31     The 2000 appropriation includes $5,666,000 for 1999 and 
139.32  $50,993,000 for 2000.  
139.33     The 2001 appropriation includes $8,484,000 for 2000 and 
139.34  $76,354,000 for 2001. 
139.35     Subd. 15.  [SCHOOL-TO-WORK PROGRAMS; STUDENTS WITH 
139.36  DISABILITIES.] For aid for school-to-work programs for pupils 
140.1   with disabilities according to Minnesota Statutes, section 
140.2   124D.454: 
140.3        $8,892,000     .....     2000 
140.4        $8,968,000     .....     2001 
140.5      The 2000 appropriation includes $808,000 for 1999 and 
140.6   $8,084,000 for 2000.  
140.7      The 2001 appropriation includes $898,000 for 2000 and 
140.8   $8,070,000 for 2001.  
140.9      Subd. 16.  [SPECIAL PROGRAMS EQUALIZATION AID.] For special 
140.10  education levy equalization aid according to Minnesota Statutes, 
140.11  section 125A.77: 
140.12       $526,000      .....     2000
140.13     The 2000 appropriation includes $526,000 for 1999 and $0 
140.14  for 2000.  
140.15     Subd. 17.  [INTEGRATION AID.] For integration aid: 
140.16       $37,182,000   .....     2000 
140.17       $43,787,000   .....     2001 
140.18     The 2000 appropriation includes $2,902,000 for 1999 and 
140.19  $34,280,000 for 2000. 
140.20     The 2001 appropriation includes $3,809,000 for 2000 and 
140.21  $39,978,000 for 2001.  
140.22     Subd. 18.  [ADDITIONAL REVENUE FOR HOMELESS STUDENTS.] For 
140.23  additional revenue for homeless students according to Minnesota 
140.24  Statutes, section 124D.70: 
140.25       $60,000       .....     2000
140.26       $60,000       .....     2001 
140.27     The 2000 appropriation includes $6,000 for 1999 and $54,000 
140.28  for 2000. 
140.29     The 2001 appropriation includes $6,000 for 2000 and $54,000 
140.30  for 2001. 
140.31     Subd. 19.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
140.32  TRANSPORTATION GRANTS.] For interdistrict desegregation or 
140.33  integration transportation grants under Minnesota Statutes, 
140.34  section 124D.87: 
140.35       $970,000       .....     2000
140.36       $970,000       .....     2001
141.1      Any balance in the first year does not cancel but is 
141.2   available in the second year. 
141.3      Subd. 20.  [COMMUNITY INTERVENTION AND PREVENTION 
141.4   GRANTS.] For community intervention and prevention grants: 
141.5        $5,200,000     .....     2000 
141.6      Of this amount, $100,000 is for a grant to the city of St. 
141.7   Louis Park for the Meadowbrook collaborative housing project; 
141.8   $300,000 is for a grant to the southwest and west central 
141.9   service cooperative to operate the child guide prevention 
141.10  program; $500,000 is for programs for community support for 
141.11  families with deaf and hard-of-hearing children; $500,000 is for 
141.12  school-linked prevention and early intervention programs; 
141.13  $750,000 is for the family connections program; $750,000 is for 
141.14  a grant to the YMCA of metropolitan Minneapolis for the Beacons 
141.15  Project; $500,000 is for grants to culturally based community 
141.16  organizations to improve the education outcomes of students who 
141.17  speak English as a second language; $500,000 is for grants to 
141.18  organizations that provide job training programs for immigrants 
141.19  ages 12 to 24; and $1,000,000 is a one-time appropriation for 
141.20  adolescent parenting grants under Laws 1997, chapter 162, 
141.21  article 2, section 28. 
141.22     This appropriation is available until June 30, 2001. 
141.23     Subd. 21.  [CENTER FOR VICTIMS OF TORTURE.] For the center 
141.24  for victims of torture to provide training, consultation, and 
141.25  support services in public schools with significant populations 
141.26  of traumatized refugee and immigrant students: 
141.27       $75,000        .....     2000 
141.28       $75,000        .....     2001 
141.29     Any balance in the first year does not cancel but is 
141.30  available in the second year. 
141.31     Subd. 22.  [GRANTS TO INDEPENDENT SCHOOL DISTRICT NO. 707, 
141.32  NETT LAKE.] For grants to independent school district No. 707, 
141.33  Nett Lake: 
141.34       $165,000       .....     2000 
141.35       $165,000       .....     2001 
141.36     $30,000 each year is for grants to pay property and boiler 
142.1   insurance premiums under Minnesota Statutes, section 466.06. 
142.2      $30,000 each year is for grants to pay obligations of the 
142.3   school district for unemployment compensation.  The 
142.4   appropriation must be paid to the appropriate state agency for 
142.5   such purposes in the name of the school district. 
142.6      $70,000 each year is for grants to pay for the maintenance 
142.7   of school facilities. 
142.8      $35,000 each year is for grants for a media specialist for 
142.9   preschool through grade 6. 
142.10     Subd. 23.  [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 
142.11  HOMELESS CHILDREN.] For matching grants for education programs 
142.12  serving homeless children under Laws 1997, First Special Session 
142.13  chapter 4, article 2, section 48: 
142.14       $1,100,000     .....     2000 
142.15     This appropriation is available until June 30, 2001. 
142.16     Subd. 24.  [SPECIAL EDUCATION ADJUSTMENT; ROCHESTER.] For a 
142.17  special education revenue adjustment for independent school 
142.18  district No. 535, Rochester: 
142.19       $150,000       .....     2000 
142.20       $ 15,000       .....     2001 
142.21     Subd. 25.  [CARE AND TREATMENT INSTRUCTIONAL AID.] For care 
142.22  and treatment instructional aid under Minnesota Statutes, 
142.23  section 124D.701: 
142.24       $2,490,000     .....     2001 
142.25     If the appropriation under this section is insufficient to 
142.26  cover the expenses submitted by districts, the commissioner 
142.27  shall prorate the aid to districts based on the expenses 
142.28  submitted by districts. 
142.29     Subd. 26.  [OUT-OF-STATE TUITION.] For out-of-state tuition 
142.30  under Minnesota Statutes, section 125A.79, subdivision 8: 
142.31       $250,000       .....     2001 
142.32     If the appropriation under this section is insufficient to 
142.33  cover the expenses submitted by districts, the commissioner 
142.34  shall prorate the aid to districts based on the expenses 
142.35  submitted by districts. 
142.36     Subd. 27.  [UNIFORM BILLING SYSTEM; TECHNICAL 
143.1   ASSISTANCE.] For implementing an effective and efficient uniform 
143.2   billing system for the educational costs of students placed out 
143.3   of the home: 
143.4        $100,000       .....     2000 
143.5      Subd. 28.  [STATE APPROVAL OF EDUCATION PROGRAMS AT CARE 
143.6   AND TREATMENT FACILITIES.] For developing and implementing a 
143.7   system to approve education costs of students placed out of the 
143.8   home: 
143.9        $200,000       .....     2000 
143.10     This appropriation is available until June 30, 2001. 
143.11     Subd. 29.  [FIRST-GRADE PREPAREDNESS GRANTS.] For grants 
143.12  for the first-grade preparedness program under Minnesota 
143.13  Statutes, section 124D.081: 
143.14       $7,000,000     .....     2000 
143.15       $7,000,000     .....     2001 
143.16     For each year, the appropriation must first be used to fund 
143.17  programs operating during the 1998-1999 school year, unless the 
143.18  site's ranking, as determined by Minnesota Statutes, section 
143.19  124D.081, subdivision 3, falls below the state average for 
143.20  elementary schools.  Any remaining funds may be used to expand 
143.21  the number of sites according to Minnesota Statutes, section 
143.22  124D.081, subdivision 3. 
143.23     Subd. 30.  [LITIGATION COSTS.] For paying the costs a 
143.24  district incurs under Minnesota Statutes, section 125A.75, 
143.25  subdivision 8: 
143.26       $500,000     .....     2000
143.27       $500,000     .....     2001
143.28     Subd. 31.  [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 
143.29  reimbursing serving school districts for unreimbursed eligible 
143.30  expenditures attributable to children placed in the serving 
143.31  school district by court action under Minnesota Statutes, 
143.32  section 125A.79, subdivision 4: 
143.33       $350,000     .....     2000 
143.34       $350,000     .....     2001 
143.35     Sec. 84.  [REVISOR INSTRUCTION.] 
143.36     In the next and subsequent editions of Minnesota Statutes 
144.1   and Minnesota Rules, the revisor shall change all references to 
144.2   the "Faribault academies" to the "Minnesota state academies." 
144.3      Sec. 85.  [REPEALER.] 
144.4      Minnesota Statutes 1998, sections 124D.081, subdivision 7; 
144.5   125A.76, subdivision 6; 125A.77; and 125A.79, subdivision 3, are 
144.6   repealed.  Laws 1995, First Special Session chapter 3, article 
144.7   3, section 11; Laws 1997, First Special Session chapter 4, 
144.8   article 2, section 51, subdivision 10; and Laws 1998, chapter 
144.9   398, article 2, sections 53 and 57, are repealed.  Minnesota 
144.10  Rules, part 3525.2470, is repealed. 
144.11     Sec. 86.  [EFFECTIVE DATES.] 
144.12     When preparing the prekindergarten through grade 12 
144.13  education conference committee report for adoption by the 
144.14  legislature, the revisor shall combine all effective date 
144.15  notations in this article into this effective dates section. 
144.16                             ARTICLE 3 
144.17                         LIFELONG LEARNING 
144.18     Section 1.  Minnesota Statutes 1998, section 124D.453, 
144.19  subdivision 3, is amended to read: 
144.20     Subd. 3.  [SECONDARY VOCATIONAL AID.] A district's 
144.21  secondary vocational education aid for a fiscal year 2000 equals 
144.22  the lesser of: 
144.23     (a) $80 $42 times the district's average daily membership 
144.24  in grades 10 to 12; or 
144.25     (b) 25 percent of approved expenditures for the following: 
144.26     (1) salaries paid to essential, licensed personnel 
144.27  providing direct instructional services to students in that 
144.28  fiscal year for services rendered in the district's approved 
144.29  secondary vocational education programs; 
144.30     (2) contracted services provided by a public or private 
144.31  agency other than a Minnesota school district or cooperative 
144.32  center under subdivision 7; 
144.33     (3) necessary travel between instructional sites by 
144.34  licensed secondary vocational education personnel; 
144.35     (4) necessary travel by licensed secondary vocational 
144.36  education personnel for vocational student organization 
145.1   activities held within the state for instructional purposes; 
145.2      (5) curriculum development activities that are part of a 
145.3   five-year plan for improvement based on program assessment; 
145.4      (6) necessary travel by licensed secondary vocational 
145.5   education personnel for noncollegiate credit bearing 
145.6   professional development; and 
145.7      (7) specialized vocational instructional supplies. 
145.8      (c) Up to ten percent of a district's secondary vocational 
145.9   aid may be spent on equipment purchases.  Districts using 
145.10  secondary vocational aid for equipment purchases must report to 
145.11  the department on the improved learning opportunities for 
145.12  students that result from the investment in equipment.  
145.13     Sec. 2.  Minnesota Statutes 1998, section 124D.453, 
145.14  subdivision 5, is amended to read: 
145.15     Subd. 5.  [AID GUARANTEE.] Notwithstanding subdivision 3, 
145.16  the secondary vocational education aid for a district is not 
145.17  less than the lesser of: 
145.18     (a) 95 50 percent of the secondary vocational education aid 
145.19  the district received for the previous fiscal year; or 
145.20     (b) 40 percent of the approved expenditures for secondary 
145.21  vocational programs included in subdivision 3, paragraph (b). 
145.22     Sec. 3.  Laws 1997, First Special Session chapter 4, 
145.23  article 3, section 25, subdivision 6, is amended to read: 
145.24     Subd. 6.  [SOUTHWEST STAR CONCEPT SCHOOL.] For a grant to 
145.25  independent school district No. 330, Heron Lake-Okabena, to 
145.26  establish the Southwest Star Concept School: 
145.27       $193,000     .....     1998
145.28     This appropriation may be used for equipment, activities 
145.29  beyond the classroom walls, professional planning assistance, 
145.30  monitoring, evaluating, and reporting activities related to the 
145.31  case study prepared in section 22. 
145.32     This appropriation is available until June 30, 1999. 
145.33     <i>(Effective date:  Section 3 (Laws 1997, First Special</i> 
145.34  <i>Session chapter 4, article 3, section 25, subdivision 6) is</i> 
145.35  <i>effective retroactive to July 1, 1997.)</i> 
145.36     Sec. 4.  [APPROPRIATIONS.] 
146.1      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
146.2   LEARNING.] The sums indicated in this section are appropriated 
146.3   from the general fund to the department of children, families, 
146.4   and learning for the fiscal years designated. 
146.5      Subd. 2.  [SECONDARY VOCATIONAL AID.] For secondary 
146.6   vocational education aid according to Minnesota Statutes, 
146.7   section 124D.453: 
146.8        $7,473,000     .....     2000 
146.9        $  702,000     .....     2001 
146.10     The 2000 appropriation includes $1,159,000 for 1999 and 
146.11  $6,314,000 for 2000. 
146.12     The 2001 appropriation includes $702,000 for 2000 and $0 
146.13  for 2001. 
146.14     Subd. 3.  [YOUTH WORKS PROGRAM.] For funding youth works 
146.15  programs according to Minnesota Statutes, sections 124D.37 to 
146.16  124D.45: 
146.17       $1,788,000     .....     2000 
146.18       $1,788,000     .....     2001 
146.19     A grantee organization may provide health and child care 
146.20  coverage to the dependents of each participant enrolled in a 
146.21  full-time youth works program to the extent coverage is not 
146.22  otherwise provided. 
146.23     Any balance in the first year does not cancel but is 
146.24  available in the second year. 
146.25     Subd. 4.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
146.26  GRANTS.] For education and employment transitions programming 
146.27  under Minnesota Statutes, section 124D.46: 
146.28       $3,225,000     .....     2000 
146.29       $3,225,000     .....     2001 
146.30     $200,000 each year is for the development and 
146.31  implementation of the ISEEK Internet-based education and 
146.32  employment information system. 
146.33     $1,000,000 each year is for an employer rebate program for 
146.34  qualifying employers who offer youth internships to educators. 
146.35     $500,000 each year is for youth entrepreneurship grants.  
146.36  Of this amount, $100,000 each year is for the high school 
147.1   student-run business project in independent school district No. 
147.2   175, Westbrook.  This appropriation shall be used for salaries, 
147.3   travel, seminars, equipment, contractual expenses, and other 
147.4   expenses related to providing assistance to other districts who 
147.5   are starting entrepreneurship programs.  Independent school 
147.6   district No. 175, Westbrook, shall also work in coordination 
147.7   with the commissioner to develop a directory of entrepreneurship 
147.8   programs in the state. 
147.9      $750,000 each year is for youth apprenticeship grants. 
147.10     $300,000 each year is for grants to programs in cities of 
147.11  the first class to expand the number of at-risk students 
147.12  participating in school-to-work projects. 
147.13     $350,000 each year is for agricultural school-to-work 
147.14  grants. 
147.15     $125,000 each year is to conduct a high school follow-up 
147.16  survey to include first, third, and sixth year graduates of 
147.17  Minnesota schools. 
147.18     Subd. 5.  [LEARN AND EARN GRADUATION ACHIEVEMENT 
147.19  PROGRAM.] For the learn and earn graduation achievement program 
147.20  under Minnesota Statutes, section 124D.32: 
147.21       $1,500,000     .....     2000 
147.22       $1,500,000     .....     2001 
147.23     This appropriation is available until June 30, 2001. 
147.24     Subd. 6.  [SOUTHWEST STAR CONCEPT SCHOOL.] For a grant to 
147.25  independent school district No. 330, Heron Lake-Okabena, to 
147.26  continue to develop the Southwest Star Concept School authorized 
147.27  under Laws 1997, First Special Session chapter 4, article 3, 
147.28  section 22: 
147.29       $179,000       .....     2000 
147.30     The grant may be used to expand the school's technology 
147.31  department, music and fine arts program, theater program, arts 
147.32  program, and health and physical education program. 
147.33     This appropriation is available until June 30, 2001. 
147.34     Sec. 5.  [REPEALER.] 
147.35     Minnesota Statutes 1998, section 124D.453, subdivision 1, 
147.36  is repealed effective July 1, 2000. 
148.1      Sec. 6.  [EFFECTIVE DATE.] 
148.2      When preparing the prekindergarten through grade 12 
148.3   education conference committee report for adoption by the 
148.4   legislature, the revisor shall combine all effective date 
148.5   notations in this article into this effective date section. 
148.6                              ARTICLE 4 
148.7                      FACILITIES AND TECHNOLOGY 
148.8      Section 1.  Minnesota Statutes 1998, section 123B.53, is 
148.9   amended to read: 
148.10     123B.53 [DEBT SERVICE FACILITIES EQUALIZATION PROGRAM.] 
148.11     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
148.12  section, the eligible debt service facilities revenue of a 
148.13  district is defined as follows: 
148.14     (1) the amount needed to produce between five and six 
148.15  percent in excess of the amount needed to meet when due the 
148.16  principal and interest payments on the obligations of the 
148.17  district for eligible projects according to subdivision 2, 
148.18  including the amounts necessary for repayment of energy loans 
148.19  according to section 216C.37 or sections 298.292 to 298.298 
148.20  126C.40, subdivision 5, debt service loans and capital loans, 
148.21  lease purchase payments under section 126C.40, subdivision 
148.22  subdivisions 2 and 6; Laws 1995, First Special Session chapter 
148.23  3, article 5, section 19; and Laws 1997, First Special Session 
148.24  chapter 4, article 4, section 30, alternative facilities levies 
148.25  revenue under section 123B.59, subdivision 5, historic building 
148.26  revenue, under section 123B.64, subdivision 2; health and safety 
148.27  revenue, under section 123B.57, subdivision 3; handicapped 
148.28  access and fire safety revenue, under section 123B.58, 
148.29  subdivision 3; building construction down payment and lease 
148.30  program, under section 123B.63; building lease revenue, under 
148.31  section 126C.40, subdivision 1; and cooperative building repair 
148.32  revenue, under section 126C.40, subdivision 3, minus 
148.33     (2) the amount of debt service excess levy reduction for 
148.34  that school year calculated according to the procedure 
148.35  established by the commissioner. 
148.36     (b) The obligations in this paragraph are excluded from 
149.1   eligible debt service facilities revenue: 
149.2      (1) obligations under section 123B.61; 
149.3      (2) the part of debt service principal and interest paid 
149.4   from the taconite environmental protection fund or northeast 
149.5   Minnesota economic protection trust; 
149.6      (3) obligations issued under Laws 1991, chapter 265, 
149.7   article 5, section 18, as amended by Laws 1992, chapter 499, 
149.8   article 5, section 24; and 
149.9      (4) obligations under section 123B.62. 
149.10     (c) For purposes of this section, if a preexisting school 
149.11  district reorganized under sections 123A.35 to 123A.43, 123A.46, 
149.12  and 123A.48 is solely responsible for retirement of the 
149.13  preexisting district's bonded indebtedness, capital loans or 
149.14  debt service loans, debt service facilities equalization aid 
149.15  must be computed separately for each of the preexisting 
149.16  districts. 
149.17     Subd. 2.  [ELIGIBILITY.] (a) The following portions of a 
149.18  district's debt service levy facilities revenue qualify for debt 
149.19  service facilities equalization: 
149.20     (1) debt service for repayment of principal and interest on 
149.21  bonds issued before July 2, 1992; 
149.22     (2) debt service for bonds refinanced after July 1, 1992, 
149.23  if the bond schedule has been approved by the commissioner and, 
149.24  if necessary, adjusted to reflect a 20-year maturity schedule; 
149.25  and 
149.26     (3) debt service for bonds issued after July 1, 1992, for 
149.27  construction projects that have received a positive review and 
149.28  comment according to section 123B.71, if the commissioner has 
149.29  determined that the district has met the criteria under section 
149.30  126C.69, subdivision 3, and if the bond schedule has been 
149.31  approved by the commissioner and, if necessary, adjusted to 
149.32  reflect a 20-year maturity schedule.; 
149.33     (4) alternative facilities revenue, according to section 
149.34  123B.59, subdivision 5; 
149.35     (5) historic building revenue, according to section 
149.36  123B.64, subdivision 2; 
150.1      (6) health and safety revenue, according to section 
150.2   123B.57, subdivision 3; 
150.3      (7) handicapped access and fire safety revenue, according 
150.4   to section 123B.58, subdivision 3; 
150.5      (8) building construction and lease revenue, according to 
150.6   section 123B.63, subdivision 3; 
150.7      (9) building lease revenue, according to section 126C.40, 
150.8   subdivision 1; and 
150.9      (10) cooperative building repair revenue, according to 
150.10  section 126C.40, subdivision 3.  
150.11     (b) The criterion in section 126C.69, subdivision 3, 
150.12  paragraph (a), clause (2), shall be considered to have been met 
150.13  if the district in the fiscal year in which the bonds are 
150.14  authorized at an election conducted under chapter 475: 
150.15     (i) if grades 9 through 12 are to be served by the 
150.16  facility, and an average of at least 66 pupils per grade in 
150.17  these grades are served; or 
150.18     (ii) is eligible for elementary or secondary sparsity 
150.19  revenue. 
150.20     (c) The criterion in section 126C.69, subdivision 3, 
150.21  paragraph (a), clause (2), shall also be considered to have been 
150.22  met if the construction project under review serves students in 
150.23  kindergarten to grade 8.  Only the debt service levy for that 
150.24  portion of the facility serving students in prekindergarten to 
150.25  grade 8, as determined by the commissioner, shall be eligible 
150.26  for debt service equalization under this paragraph. 
150.27     (d) The criterion described in section 126C.69, subdivision 
150.28  3, paragraph (a), clause (9), does not apply to bonds authorized 
150.29  by elections held before July 1, 1992. 
150.30     (e) For the purpose of this subdivision the department 
150.31  shall determine the eligibility for sparsity at the location of 
150.32  the new facility, or the site of the new facility closest to the 
150.33  nearest operating school if there is more than one new facility. 
150.34     (f) Notwithstanding paragraphs (a) to (e), debt service for 
150.35  repayment of principal and interest on bonds issued after July 
150.36  1, 1997, does not qualify for debt service facilities 
151.1   equalization aid unless the primary purpose of the facility is 
151.2   to serve students in kindergarten through grade 12. 
151.3      Subd. 3.  [NOTIFICATION.] A district eligible for debt 
151.4   service facilities equalization revenue under subdivision 2 must 
151.5   notify the commissioner of the amount of its intended debt 
151.6   service facilities equalization revenue calculated under 
151.7   subdivision 1 for all bonds sold prior to the notification by 
151.8   July 1 of the calendar year the levy is certified. 
151.9      Subd. 4.  [DEBT SERVICE FACILITIES EQUALIZATION REVENUE.] 
151.10  (a) For fiscal years 1995 and later, The debt service facilities 
151.11  equalization revenue of a district equals the eligible debt 
151.12  service facilities equalization revenue minus the amount raised 
151.13  by a levy of ten 12 percent times the adjusted net tax capacity 
151.14  of the district. 
151.15     (b) For fiscal year 1993, debt service equalization revenue 
151.16  equals one-third of the amount calculated in paragraph (a). 
151.17     (c) For fiscal year 1994, debt service equalization revenue 
151.18  equals two-thirds of the amount calculated in paragraph (a). 
151.19     Subd. 5.  [EQUALIZED DEBT SERVICE FACILITIES LEVY.] To 
151.20  obtain debt service facilities equalization revenue, a district 
151.21  must levy an amount not to exceed the district's debt service 
151.22  facilities equalization revenue times the lesser of one or the 
151.23  ratio of: 
151.24     (1) the quotient derived by dividing the adjusted net tax 
151.25  capacity of the district for the year before the year the levy 
151.26  is certified by the resident adjusted pupil units in the 
151.27  district for the school year ending in the year prior to the 
151.28  year the levy is certified; to 
151.29     (2) $4,707.50 $4,000. 
151.30     Subd. 6.  [DEBT SERVICE FACILITIES EQUALIZATION AID.] A 
151.31  district's debt service facilities equalization aid is the 
151.32  difference between the debt service facilities equalization 
151.33  revenue and the equalized debt service facilities levy.  If a 
151.34  district does not levy the entire amount permitted, the 
151.35  district's aid must be reduced in proportion to the amount 
151.36  levied.  If the amount of debt service facilities equalization 
152.1   aid actually appropriated for the fiscal year in which this 
152.2   calculation is made is insufficient to fully fund debt service 
152.3   facilities equalization aid, the commissioner shall prorate the 
152.4   amount of aid across all eligible districts. 
152.5      Subd. 7.  [DEBT SERVICE FACILITIES EQUALIZATION AID PAYMENT 
152.6   SCHEDULE.] Debt service Facilities equalization aid must be paid 
152.7   as follows:  30 percent before September 15, 30 percent before 
152.8   December 15, 30 percent before March 15, and a final payment of 
152.9   ten percent by July 15 of the subsequent fiscal year according 
152.10  to section 127A.45, subdivision 10. 
152.11     Subd. 8.  [DEBT SERVICE PRIORITY.] Of the amount paid under 
152.12  this section, the district must first allocate the amount 
152.13  attributable to obligations under chapter 475.  Remaining aid 
152.14  may be used for the other purposes of this section. 
152.15     <i>(Effective date:  Section 1 (123B.53) is effective the day</i> 
152.16  <i>following final enactment.)</i> 
152.17     Sec. 2.  Minnesota Statutes 1998, section 123B.54, is 
152.18  amended to read: 
152.19     123B.54 [DEBT SERVICE EQUALIZED FACILITIES APPROPRIATION.] 
152.20     (a) $35,480,000 in fiscal year 1998, $38,159,000 in fiscal 
152.21  year 1999, and $38,390,000 $32,534,000 in fiscal year 2000 2002 
152.22  and each year thereafter is appropriated from the general fund 
152.23  to the commissioner of children, families, and learning for 
152.24  payment of debt service equalization aid under section 123B.53.  
152.25  The 2000 2002 appropriation includes $3,842,000 $3,266,000 for 
152.26  1999 2001 and $34,548,000 $29,268,000 for 2000 2002. 
152.27     (b) The appropriations in paragraph (a) must be reduced by 
152.28  the amount of any money specifically appropriated for the same 
152.29  purpose in any year from any state fund. 
152.30     Sec. 3.  Minnesota Statutes 1998, section 123B.57, 
152.31  subdivision 1, is amended to read: 
152.32     Subdivision 1.  [HEALTH AND SAFETY PROGRAM.] To receive 
152.33  health and safety revenue for any fiscal year a district must 
152.34  submit to the commissioner an application for aid and levy 
152.35  revenue by the date determined by the commissioner.  The 
152.36  application may be for hazardous substance removal, fire and 
153.1   life safety code repairs, labor and industry regulated facility 
153.2   and equipment violations, and health, safety, and environmental 
153.3   management, including indoor air quality management.  The 
153.4   application must include a health and safety program adopted by 
153.5   the school district board.  The program must include the 
153.6   estimated cost, per building, of the program by fiscal 
153.7   year.  Upon approval through the adoption of a resolution by 
153.8   each of a cooperative unit's member school district board and 
153.9   the approval of the department of children, families, and 
153.10  learning, a school district may include its proportionate share 
153.11  of the costs of health and safety projects for cooperative units 
153.12  in its application. 
153.13     Sec. 4.  Minnesota Statutes 1998, section 123B.58, 
153.14  subdivision 3, is amended to read: 
153.15     Subd. 3.  [LEVY AUTHORITY REVENUE.] The district may levy 
153.16  is eligible for revenue up to $300,000 under this section, as 
153.17  approved by the commissioner.  The approved amount may be levied 
153.18  received over eight or fewer years. 
153.19     Sec. 5.  Minnesota Statutes 1998, section 123B.58, 
153.20  subdivision 4, is amended to read: 
153.21     Subd. 4.  [LEVY AUTHORITY REVENUE IN COMBINED DISTRICTS.] 
153.22  Notwithstanding subdivision 3, a district that has combined or 
153.23  consolidated may levy receive revenue up to 50 percent times 
153.24  $300,000 times the number of former districts that operated on 
153.25  June 30, 1991, in the area that now makes up the combined or 
153.26  consolidated district.  The approved amount is reduced by any 
153.27  amount levied under subdivision 3 in the consolidated or 
153.28  combined district or in the former districts that make up the 
153.29  consolidated or combined district.  Levy authority under this 
153.30  subdivision expires at the same time as levy authority under 
153.31  subdivision 3. 
153.32     <i>(Effective date:  Section 5 (123B.58, subdivision 4) is</i> 
153.33  <i>effective the day following final enactment.)</i> 
153.34     Sec. 6.  Minnesota Statutes 1998, section 123B.59, is 
153.35  amended to read: 
153.36     123B.59 [ALTERNATIVE FACILITIES BONDING AND LEVY REVENUE 
154.1   PROGRAM.] 
154.2      Subdivision 1.  [TO QUALIFY.] An independent or special 
154.3   school district qualifies to participate in the alternative 
154.4   facilities bonding and levy revenue program if the district has: 
154.5      (1) more than 66 students per grade; 
154.6      (2) over 1,850,000 square feet of space; 
154.7      (3) average age of building space is 20 15 years or older; 
154.8      (4) insufficient funds from projected health and safety 
154.9   revenue and capital facilities revenue to meet the requirements 
154.10  for deferred maintenance, to make accessibility improvements, or 
154.11  to make fire, safety, or health repairs; and 
154.12     (5) a ten-year facility plan approved by the commissioner 
154.13  according to subdivision 2. 
154.14     Subd. 2.  [TEN-YEAR PLAN.] (a) A qualifying district must 
154.15  have a ten-year facility plan approved by the commissioner that 
154.16  includes an inventory of projects and costs that would be 
154.17  eligible for: 
154.18     (1) health and safety revenue; 
154.19     (2) disabled access levy; and 
154.20     (3) deferred capital expenditures and maintenance projects 
154.21  necessary to prevent further erosion of facilities. 
154.22     (b) The school district must: 
154.23     (1) annually update the plan; 
154.24     (2) biennially submit a facility maintenance plan; and 
154.25     (3) indicate whether the district will issue bonds to 
154.26  finance the plan or levy annually include program revenue under 
154.27  the facilities equalization program, under section 123B.53, for 
154.28  the costs. 
154.29     Subd. 3.  [BOND AUTHORIZATION.] A school district, upon 
154.30  approval of its board and the commissioner, may issue general 
154.31  obligation bonds under this section to finance approved 
154.32  facilities plans.  Chapter 475, except sections 475.58 and 
154.33  475.59, must be complied with.  The district may levy under 
154.34  subdivision 5 for the debt service revenue.  The authority to 
154.35  issue bonds under this section is in addition to any bonding 
154.36  authority authorized by this chapter, or other law.  The amount 
155.1   of bonding authority authorized under this section must be 
155.2   disregarded in calculating the bonding or net debt limits of 
155.3   this chapter, or any other law other than section 475.53, 
155.4   subdivision 4.  
155.5      Subd. 3a.  [INTEGRATION REVENUE.] (a) A school district 
155.6   that is participating in an interdistrict magnet school program 
155.7   and qualifies for revenue under subdivision 1 may add to its 
155.8   health and safety revenue and deferred maintenance revenue 
155.9   amounts under subdivision 1 its proportionate share of any 
155.10  health and safety costs and deferred maintenance costs 
155.11  attributable to its participation in an interdistrict magnet 
155.12  program. 
155.13     (b) Notwithstanding subdivision 1, a school district that 
155.14  is participating in an interdistrict magnet school program but 
155.15  does not qualify for revenue under subdivision 1 may participate 
155.16  in the alternative facilities revenue program only for the 
155.17  purpose of financing its proportionate share of health and 
155.18  safety and deferred maintenance costs associated with the 
155.19  interdistrict magnet school and may receive revenue under 
155.20  subdivision 5 for that purpose. 
155.21     Subd. 4.  [LEVY REVENUE PROHIBITED FOR CAPITAL PROJECTS.] A 
155.22  district that participates in the alternative facilities bonding 
155.23  and levy revenue program is not eligible to levy and cannot 
155.24  receive aid for revenue under sections 123B.57 and 123B.58 for 
155.25  any capital projects funded under this section.  A district 
155.26  may levy and receive aid for health and safety receive revenue 
155.27  for environmental management costs and health and safety 
155.28  regulatory, hazard assessment, record keeping, and maintenance 
155.29  programs as defined in section 123A.443 123B.57, subdivision 2, 
155.30  and approved by the commissioner. 
155.31     Subd. 5.  [LEVY REVENUE AUTHORIZED.] A district, after 
155.32  local board approval, may levy receive revenue for costs related 
155.33  to an approved facility plan as follows:  
155.34     (a) if the district has indicated to the commissioner that 
155.35  bonds will be issued, the district may levy receive revenue for 
155.36  the principal and interest payments on outstanding bonds issued 
156.1   according to subdivision 3 after reduction for any alternative 
156.2   facilities aid receivable under subdivision 6; or 
156.3      (b) if the district has indicated to the commissioner that 
156.4   the plan will be funded through levy authorized under section 
156.5   123B.53, subdivision 5, the district may levy according to the 
156.6   schedule approved in the plan after reduction for any 
156.7   alternative facilities aid receivable under subdivision 6. 
156.8      Subd. 6.  [ALTERNATIVE FACILITIES AID.] A district's 
156.9   alternative facilities aid is the amount equal to the district's 
156.10  annual debt service costs, provided that the amount does not 
156.11  exceed the amount certified to be levied for those purposes for 
156.12  taxes payable in 1997, or for a district that made a levy under 
156.13  subdivision 5, paragraph (b), the lesser of the district's 
156.14  annual levy amount, or one-sixth of the amount of levy that it 
156.15  certified for that purpose for taxes payable in 1998. 
156.16     Subd. 7.  [ALTERNATIVE FACILITIES APPROPRIATION.] (a) An 
156.17  amount not to exceed $19,700,000 for fiscal year 2000 and 
156.18  $20,000,000 for fiscal year 2001 and each year thereafter is 
156.19  appropriated from the general fund to the commissioner of 
156.20  children, families, and learning for payment of alternative 
156.21  facilities aid under subdivision 6.  
156.22     (b) The appropriation in paragraph (a) must be reduced by 
156.23  the amount of any money specifically appropriated for the same 
156.24  purpose in any year from any state fund. 
156.25     Subd. 8.  [SEPARATE ACCOUNT.] A district must establish a 
156.26  separate account under the uniform financial accounting and 
156.27  reporting standards (UFARS) for this program.  If the district's 
156.28  levy revenue exceeds the necessary interest and principal 
156.29  payments and noncapital health and safety costs, the district 
156.30  must reserve the revenue to replace future bonding authority, 
156.31  prepay bonds authorized under this program, or make payments on 
156.32  principal and interest. 
156.33     <i>(Effective date:  Section 6 (123B.59) is effective the day</i> 
156.34  <i>following final enactment.)</i> 
156.35     Sec. 7.  Minnesota Statutes 1998, section 123B.61, is 
156.36  amended to read: 
157.1      123B.61 [PURCHASE OF CERTAIN EQUIPMENT.] 
157.2      The board of a district may issue general obligation 
157.3   certificates of indebtedness or capital notes subject to the 
157.4   district debt limits to purchase:  (a) purchase vehicles, 
157.5   computers, telephone systems, cable equipment, photocopy and 
157.6   office equipment, technological equipment for instruction, and 
157.7   other capital equipment having an expected useful life at least 
157.8   as long as the terms of the certificates or 
157.9   notes; and (b) purchase computer hardware and software, without 
157.10  regard to its expected useful life, whether bundled with 
157.11  machinery or equipment or unbundled, together with application 
157.12  development services and training related to the use of the 
157.13  computer; and (c) prepay special assessments.  The certificates 
157.14  or notes must be payable in not more than five years and must be 
157.15  issued on the terms and in the manner determined by the 
157.16  board.  Except, certificates or notes issued to prepay special 
157.17  assessments must be payable in not more than 20 years.  The 
157.18  certificates or notes may be issued by resolution and without 
157.19  the requirement for an election.  The certificates or notes are 
157.20  general obligation bonds for purposes of section 126C.55.  A tax 
157.21  levy must be made for the payment of the principal and interest 
157.22  on the certificates or notes, in accordance with section 475.61, 
157.23  as in the case of bonds.  The sum of the tax levies under this 
157.24  section and section 123B.62 for each year must not exceed the 
157.25  amount of the district's total operating capital revenue for the 
157.26  year the initial debt service levies are certified.  The 
157.27  district's general education levy for each year must be reduced 
157.28  by the sum of (1) the amount of the tax levies for debt service 
157.29  certified for each year for payment of the principal and 
157.30  interest on the certificates or notes as required by section 
157.31  475.61, and (2) any excess amount in the debt redemption fund 
157.32  used to retire certificates or notes issued after April 1, 1997, 
157.33  other than amounts used to pay capitalized interest.  A district 
157.34  using an excess amount in the debt redemption fund to retire the 
157.35  certificates or notes shall report the amount used for this 
157.36  purpose to the commissioner by July 15 of the following fiscal 
158.1   year.  A district having an outstanding capital loan under 
158.2   section 126C.69 or an outstanding debt service loan under 
158.3   section 126C.68 must not use an excess amount in the debt 
158.4   redemption fund to retire the certificates or notes. 
158.5      <i>(Effective date:  Section 7 (123B.61) is effective the day</i> 
158.6   <i>following final enactment.)</i> 
158.7      Sec. 8.  Minnesota Statutes 1998, section 123B.63, 
158.8   subdivision 3, is amended to read: 
158.9      Subd. 3.  [FACILITIES DOWN PAYMENT LEVY REVENUE 
158.10  REFERENDUM.] A district may levy the local tax rate receive 
158.11  revenue under the facilities equalization program for the 
158.12  purposes of financing a school construction project or to pay 
158.13  for the lease on a new school building used primarily for 
158.14  regular kindergarten, elementary, or secondary instruction if 
158.15  authorization is approved by a majority of the electors voting 
158.16  on the question to provide funds for a down payment for an 
158.17  approved project.  The election must take place no more than 
158.18  five years before the estimated date of commencement of the 
158.19  project.  The referendum must be held on a date set by the 
158.20  board.  A referendum for a project not receiving a positive 
158.21  review and comment by the commissioner under section 123B.71 
158.22  must be approved by at least 60 percent of the voters voting on 
158.23  the question at the election.  The referendum may be called by 
158.24  the school board and may be held: 
158.25     (1) separately, before an election for the issuance of 
158.26  obligations for the project under chapter 475; or 
158.27     (2) in conjunction with an election for the issuance of 
158.28  obligations for the project under chapter 475; or 
158.29     (3) notwithstanding section 475.59, as a conjunctive 
158.30  question authorizing both the down payment levy revenue and the 
158.31  issuance of obligations for the project under chapter 475.  Any 
158.32  obligations authorized for a project may be issued within five 
158.33  years of the date of the election. 
158.34     The ballot must provide a general description of the 
158.35  proposed project, state the estimated total cost of the project, 
158.36  state whether the project has received a positive or 
159.1   negative unfavorable review and comment from the commissioner, 
159.2   state the maximum amount of the down payment equalized facility 
159.3   levy as a percentage of net tax capacity, state the amount that 
159.4   will be raised by that local tax rate in the first year it is to 
159.5   be levied, and state the maximum number of years that the levy 
159.6   authorization will apply. 
159.7      The ballot must contain a textual portion with the 
159.8   information required in this section and a question stating 
159.9   substantially the following: 
159.10     "Shall the down payment equalized facility levy proposed by 
159.11  the board of .......... School District No. .......... be 
159.12  approved?" 
159.13     If approved, the amount provided by the approved local tax 
159.14  rate applied to the net tax capacity for the year preceding the 
159.15  year the levy is certified may be certified for the number of 
159.16  years approved. 
159.17     In the event a conjunctive question proposes to authorize 
159.18  both the down payment equalized facilities levy, under section 
159.19  123B.53, and the issuance of obligations for the project, 
159.20  appropriate language authorizing the issuance of obligations 
159.21  must also be included in the question.  
159.22     The district must notify the commissioner of the results of 
159.23  the referendum. 
159.24     <i>(Effective date:  Section 8 (123B.63, subdivision 3) is</i> 
159.25  <i>effective the day following final enactment.)</i> 
159.26     Sec. 9.  Minnesota Statutes 1998, section 123B.63, 
159.27  subdivision 4, is amended to read: 
159.28     Subd. 4.  [EXCESS BUILDING CONSTRUCTION FUND LEVY 
159.29  PROCEEDS.] (a) For the purpose of a school construction project, 
159.30  any funds remaining in the down payment account that are not 
159.31  applied to the payment of the costs of the approved project 
159.32  before its final completion must be transferred to the 
159.33  district's debt redemption fund.  
159.34     (b) For the purpose of a leased building, any funds that 
159.35  are not applied to the payment of the lease at the termination 
159.36  of the lease must be transferred to the district's debt 
160.1   redemption fund. 
160.2      <i>(Effective date:  Section 9 (123B.63, subdivision 4) is</i> 
160.3   <i>effective the day following final enactment.)</i> 
160.4      Sec. 10.  Minnesota Statutes 1998, section 124D.88, 
160.5   subdivision 3, is amended to read: 
160.6      Subd. 3.  [GRANT APPLICATION PROCESS.] (a) Any group of 
160.7   school districts that meets the criteria required under 
160.8   paragraph (b)(i) may apply for a magnet school grant in an 
160.9   amount not to exceed $15,000,000 $20,800,000 for the approved 
160.10  costs or expansion of a magnet school facility. 
160.11     (b)(i) Any group of districts that submits an application 
160.12  for a grant shall submit a proposal to the commissioner for 
160.13  review and comment under section 123B.71, and the commissioner 
160.14  shall prepare a review and comment on the proposed magnet school 
160.15  facility, regardless of the amount of the capital expenditure 
160.16  required to design, acquire, construct, remodel, improve, 
160.17  furnish, or equip the facility.  The commissioner must not 
160.18  approve an application for a magnet school grant for any 
160.19  facility unless the facility receives a favorable review and 
160.20  comment under section 123B.71 and the participating districts: 
160.21     (1) establish a joint powers board under section 471.59 to 
160.22  represent all participating districts and govern the magnet 
160.23  school facility; 
160.24     (2) design the planned magnet school facility to meet the 
160.25  applicable requirements contained in Minnesota Rules, chapter 
160.26  3535; 
160.27     (3) submit a statement of need, including reasons why the 
160.28  magnet school will facilitate integration and improve learning; 
160.29     (4) prepare an educational plan that includes input from 
160.30  both community and professional staff; and 
160.31     (5) develop an education program that will improve learning 
160.32  opportunities for students attending the magnet school. 
160.33     (ii) The districts may develop a plan that permits social 
160.34  service, health, and other programs serving students and 
160.35  community residents to be located within the magnet school 
160.36  facility.  The commissioner shall consider this plan when 
161.1   preparing a review and comment on the proposed facility.  
161.2      (c) When two or more districts enter into an agreement 
161.3   establishing a joint powers board to govern the magnet school 
161.4   facility, all member districts shall have the same powers.  
161.5      (d) A joint powers board of participating school districts 
161.6   established under paragraphs (b) and (c) that intends to apply 
161.7   for a grant must adopt a resolution stating the costs of the 
161.8   proposed project, the purpose for which the debt is to be 
161.9   incurred, and an estimate of the dates when the contracts for 
161.10  the proposed project will be completed.  A copy of the 
161.11  resolution must accompany any application for a state grant 
161.12  under this section. 
161.13     (e)(i) The commissioner shall examine and consider all 
161.14  grant applications.  If the commissioner finds that any joint 
161.15  powers district is not a qualified grant applicant, the 
161.16  commissioner shall promptly notify that joint powers board.  The 
161.17  commissioner shall make awards to no more than two qualified 
161.18  applicants whose applications have been on file with the 
161.19  commissioner more than 30 days.  
161.20     (ii) A grant award is subject to verification by the joint 
161.21  powers board under paragraph (f).  A grant award must not be 
161.22  made until the participating districts determine the site of the 
161.23  magnet school facility.  If the total amount of the approved 
161.24  applications exceeds the amount of grant funding that is or can 
161.25  be made available, the commissioner shall allot the available 
161.26  amount equally between the approved applicant districts.  The 
161.27  commissioner shall promptly certify to each qualified joint 
161.28  powers board the amount, if any, of the grant awarded to it. 
161.29     (f) Each grant must be evidenced by a contract between the 
161.30  joint powers board and the state acting through the 
161.31  commissioner.  The contract obligates the state to pay to the 
161.32  joint powers board an amount computed according to paragraph 
161.33  (e)(ii) and a schedule, and terms and conditions acceptable to 
161.34  the commissioner of finance. 
161.35     <i>(Effective date:  Section 10 (124D.88, subdivision 3) is</i> 
161.36  <i>effective the day following final enactment.)</i> 
162.1      Sec. 11.  Minnesota Statutes 1998, section 125B.20, is 
162.2   amended to read: 
162.3      125B.20 [TELECOMMUNICATION ACCESS GRANT AND STATEWIDE 
162.4   COORDINATION.] 
162.5      Subdivision 1.  [ESTABLISHMENT; PURPOSE.] The purpose of 
162.6   developing a statewide school district telecommunications 
162.7   network is to expand the availability of a broad range of 
162.8   courses and degrees to students throughout the state, to share 
162.9   information resources to improve access, quality, and 
162.10  efficiency, to improve learning, and distance cooperative 
162.11  learning opportunities, and to promote the exchange of ideas 
162.12  among students, parents, teachers, media generalists, 
162.13  librarians, and the public.  In addition, through the 
162.14  development of this statewide telecommunications network 
162.15  emphasizing cost-effective, competitive connections, all 
162.16  Minnesotans will benefit by enhancing access to 
162.17  telecommunications technology throughout the state.  Network 
162.18  connections for school districts and public libraries will be 
162.19  are coordinated and fully integrated into the existing state 
162.20  telecommunications and interactive television networks to 
162.21  achieve comprehensive and efficient interconnectivity of school 
162.22  districts and libraries to higher education institutions, state 
162.23  agencies, other governmental units, agencies, and institutions 
162.24  throughout Minnesota.  A school district may apply to the 
162.25  commissioner for a grant under subdivision 2, and a regional 
162.26  public library may apply under subdivision 3.  The Minnesota 
162.27  education telecommunication council established in Laws 1995, 
162.28  First Special Session chapter 3, article 12, section 7, shall 
162.29  establish priorities for awarding grants, making grant awards, 
162.30  and being responsible for the coordination of networks. 
162.31     Subd. 2.  [SCHOOL DISTRICT TELECOMMUNICATIONS GRANT.] (a) 
162.32  Priority will be given to a school district that has not 
162.33  received access to interactive video, data connection, or both 
162.34  under the telecommunications access grant program.  Districts 
162.35  may apply for a grant under this subdivision to:  (1) establish 
162.36  connections among school districts, and between school districts 
163.1   and the state information infrastructure administered by the 
163.2   department of administration under section 16B.465; or (2) if 
163.3   such a connection meeting minimum electronic connectivity 
163.4   standards is already established, enhance telecommunications 
163.5   capacity for a school district.  The minimum standards of 
163.6   capacity are a 56 kilobyte data line and 768 kilobyte ITV 
163.7   connection, subject to change based on the recommendations by 
163.8   the Minnesota education telecommunications council.  A district 
163.9   may submit a grant application for interactive television with 
163.10  higher capacity connections in order to maintain multiple 
163.11  simultaneous connections.  To ensure coordination among school 
163.12  districts, a school district must submit its grant application 
163.13  to the council through an organization that coordinates the 
163.14  applications and connections of at least ten school districts or 
163.15  through an existing technology cooperative the 
163.16  telecommunications access grant cluster of which the district is 
163.17  a member.  
163.18     (b) The application must, at a minimum, contain information 
163.19  to document for each applicant school district the following: 
163.20     (1) that the proposed connection meets the minimum 
163.21  standards and employs an open network architecture that will 
163.22  ensure interconnectivity and interoperability with other 
163.23  education institutions and libraries; 
163.24     (2) that the proposed connection and system will be 
163.25  connected to the state information infrastructure through the 
163.26  department of administration under section 16B.465 and that a 
163.27  network service and management agreement is in place; 
163.28     (3) that the proposed connection and system will be 
163.29  connected to the higher education telecommunication network and 
163.30  that a governance agreement has been adopted which includes 
163.31  agreements between the school district system, a higher 
163.32  education regional council, libraries, and coordinating 
163.33  entities; 
163.34     (4) the telecommunication vendor selected to provide 
163.35  service from the district to a state information infrastructure 
163.36  hub or to a more cost-effective connection point to the state 
164.1   information infrastructure; and 
164.2      (5) other information, as determined by the commissioner in 
164.3   consultation with the education telecommunications council, to 
164.4   ensure that connections are coordinated, meet state standards 
164.5   and are cost-effective, and that service is provided in an 
164.6   efficient and cost-effective manner. 
164.7      (c) A school district may include, in its grant 
164.8   application, telecommunications access for collaboration with 
164.9   nonprofit arts organizations for the purpose of educational 
164.10  programs, or access for a secondary media center that:  (1) is a 
164.11  member of a multitype library system; (2) is open during periods 
164.12  of the year when classroom instruction is occurring; and (3) has 
164.13  licensed school media staff on site. 
164.14     (d) The Minnesota education telecommunications council 
164.15  shall award grants and the funds shall be dispersed by the 
164.16  commissioner.  The highest priority for these grants shall be to 
164.17  bring school districts up to the minimum connectivity standards. 
164.18  A grant to enhance telecommunications capacity beyond the 
164.19  minimum connectivity standards shall be no more than 75 percent 
164.20  of the maximum grant under this subdivision.  Grant applications 
164.21  for minimum connection and enhanced telecommunications capacity 
164.22  grants must be submitted to the commissioner by a coordinating 
164.23  organization including, but not limited to, service cooperatives 
164.24  and education districts.  Grant applications must be submitted 
164.25  to the commissioner by a telecommunications access grant cluster 
164.26  organization.  For the purposes of the grant, a school district 
164.27  may include a charter school under section 124D.10, or the 
164.28  Faribault academies.  Based on the award made by the council, 
164.29  all grants under this subdivision shall be paid by the 
164.30  commissioner directly to a school district (unless this 
164.31  application requests that the funds be paid to the coordinating 
164.32  agency).  Nonpublic schools as defined in section 237.065, 
164.33  subdivision 2, located within the district may access the 
164.34  network.  The nonpublic school is responsible for actual costs 
164.35  for connection from the school to the access site. 
164.36     (e) Money awarded under this section may be used only for 
165.1   the purposes explicitly stated in the grant application. 
165.2      Subd. 3.  [REGIONAL LIBRARY TELECOMMUNICATION GRANT.] (a) A 
165.3   regional public library system may apply for a telecommunication 
165.4   access grant.  Priority will be given to public libraries that 
165.5   have not received access to data connection under the 
165.6   telecommunications access grant program.  The grant must be used 
165.7   to create or expand the capacity of electronic data access and 
165.8   connect the library system with the state information 
165.9   infrastructure administered by the department of administration 
165.10  under section 16B.465.  Connections must meet minimum system 
165.11  standards of a 56 kilobyte data line and 768 kilobyte ITV 
165.12  connection.  To be eligible for a telecommunications access 
165.13  grant, a regional public library system must:  (1) meet the 
165.14  level of local support required under section 134.34; and (2) be 
165.15  open at least 20 hours per week. 
165.16     (b) Any grant award under this subdivision may not be used 
165.17  to substitute for any existing local funds allocated to provide 
165.18  electronic access, or equipment for library staff or the public, 
165.19  or local funds previously dedicated to other library operations. 
165.20     (c) An application for a regional public library 
165.21  telecommunications access grant must, at a minimum, contain 
165.22  information to document the following: 
165.23     (1) that the connection meets the minimum standards and 
165.24  employs an open network architecture that will ensure 
165.25  interconnectivity and interoperability with other libraries and 
165.26  the educational system; 
165.27     (2) that the connection is being established through the 
165.28  most cost-effective means and that the public library has 
165.29  explored and coordinated connections through school districts or 
165.30  other governmental agencies; 
165.31     (3) that the proposed connection and system will be 
165.32  connected to the state information infrastructure through the 
165.33  department of administration under section 16B.465 and that a 
165.34  network service and management agreement is in place; 
165.35     (4) that the proposed connection and system will be 
165.36  connected to the higher education and to the school district 
166.1   telecommunication networks subject to a governance agreement 
166.2   with one or more school districts and a higher education 
166.3   regional council specifying how the system will be coordinated; 
166.4      (5) the telecommunication vendor selected to provide 
166.5   service from the library to a state information infrastructure 
166.6   hub or through a more cost-effective connection point to the 
166.7   state information infrastructure; and 
166.8      (6) other information, as determined by the commissioner, 
166.9   to ensure that connections are coordinated, meet state 
166.10  standards, are cost-effective, and that service is provided in 
166.11  an efficient and cost-effective manner so that libraries 
166.12  throughout the state are connected in as seamless a manner as 
166.13  technically possible. 
166.14     Subd. 4.  [AWARD OF GRANTS.] The council shall develop 
166.15  application forms and procedures for school district minimum 
166.16  connectivity grants, enhanced telecommunications grants, and 
166.17  regional library telecommunication access grants.  The council 
166.18  shall select the grant recipient and shall promptly notify any 
166.19  applicant that is found not to be qualified.  The commissioner 
166.20  shall make the grant payments directly to the school district or 
166.21  regional library system.  At the request of the district or 
166.22  regional library system, the commissioner may make the grant 
166.23  payment directly to the coordinating organization.  If 
166.24  appropriations are insufficient to fund all applications, the 
166.25  commissioner shall first fully fund the minimum connectivity 
166.26  grants.  Unsuccessful applicants may reapply for a grant. 
166.27     Subd. 5.  [E-RATES.] The telecommunication access grant 
166.28  clusters are required to file e-rate applications for 
166.29  telecommunication access grant-related expenditures on behalf of 
166.30  grant participants in their clusters.  Discounts received on 
166.31  telecommunication access grant expenditures shall be used to 
166.32  offset or reduce operations funding provided by the state. 
166.33     Sec. 12.  Minnesota Statutes 1998, section 126C.40, 
166.34  subdivision 1, is amended to read: 
166.35     Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
166.36  district finds it economically advantageous to rent or lease a 
167.1   building or land for any instructional purposes or for school 
167.2   storage or furniture repair, and it determines that the 
167.3   operating capital revenue authorized under section 126C.10, 
167.4   subdivision 13, is insufficient for this purpose, it may apply 
167.5   to the commissioner for permission to make an additional capital 
167.6   expenditure levy increase its equalized facilities revenue under 
167.7   section 123B.53, subdivision 5, for this purpose.  An 
167.8   application for permission to levy under this subdivision 
167.9   increase the equalized facilities revenue must contain financial 
167.10  justification for the proposed levy increase, the terms and 
167.11  conditions of the proposed lease, and a description of the space 
167.12  to be leased and its proposed use.  
167.13     (b) The criteria for approval of applications to levy under 
167.14  this subdivision must include:  the reasonableness of the price, 
167.15  the appropriateness of the space to the proposed activity, the 
167.16  feasibility of transporting pupils to the leased building or 
167.17  land, conformity of the lease to the laws and rules of the state 
167.18  of Minnesota, and the appropriateness of the proposed lease to 
167.19  the space needs and the financial condition of the district.  
167.20  The commissioner must not authorize a levy revenue under this 
167.21  subdivision in an amount greater than the cost to the district 
167.22  of renting or leasing a building or land for approved purposes.  
167.23  The proceeds of this levy must not be used for custodial or 
167.24  other maintenance services.  A district may not levy receive 
167.25  revenue under this subdivision for the purpose of leasing or 
167.26  renting a district-owned building or site to itself. 
167.27     (c) For agreements finalized after July 1, 1997, a district 
167.28  may not levy receive revenue under this subdivision for the 
167.29  purpose of leasing:  (1) a newly constructed building used 
167.30  primarily for regular kindergarten, elementary, or secondary 
167.31  instruction; or (2) a newly constructed building addition or 
167.32  additions used primarily for regular kindergarten, elementary, 
167.33  or secondary instruction that contains more than 20 percent of 
167.34  the square footage of the previously existing building. 
167.35     (d) The total levy revenue under this subdivision for a 
167.36  district for any year must not exceed $100 times the resident 
168.1   adjusted pupil units for the fiscal year to which the levy is 
168.2   attributable. 
168.3      (e) For agreements for which a review and comment have been 
168.4   submitted to the department of children, families, and learning 
168.5   after April 1, 1998, the term "instructional purpose" as used in 
168.6   this subdivision excludes expenditures on stadiums. 
168.7      <i>(Effective date:  Section 12 (126C.40, subdivision 1) is</i> 
168.8   <i>effective the day following final enactment.)</i> 
168.9      Sec. 13.  Minnesota Statutes 1998, section 126C.40, 
168.10  subdivision 2, is amended to read: 
168.11     Subd. 2.  [PRE-JULY 1990 LEASE PURCHASE, INSTALLMENT BUYS.] 
168.12  A district may annually levy increase the amount of its 
168.13  equalized facilities revenue needed to make payments required by 
168.14  a lease purchase agreement, installment purchase agreement, or 
168.15  other deferred payment agreement authorized by Minnesota 
168.16  Statutes 1989 Supplement, section 465.71, if:  
168.17     (1) the agreement was approved by the commissioner before 
168.18  July 1, 1990, according to Minnesota Statutes 1989 Supplement, 
168.19  section 275.125, subdivision 11d; or 
168.20     (2) the district levied in 1989 for the payments. 
168.21     <i>(Effective date:  Section 13 (126C.40, subdivision 2) is</i> 
168.22  <i>effective the day following final enactment.)</i> 
168.23     Sec. 14.  Minnesota Statutes 1998, section 126C.40, 
168.24  subdivision 3, is amended to read: 
168.25     Subd. 3.  [COOPERATING DISTRICTS.] A district that has an 
168.26  agreement according to section 123A.30 or 123A.32 may levy 
168.27  increase its equalized facilities revenue under section 123B.53, 
168.28  subdivision 5, for the repair costs, as approved by the 
168.29  department of a building located in another district that is a 
168.30  party to the agreement. 
168.31     <i>(Effective date:  Section 14 (126C.40, subdivision 3) is</i> 
168.32  <i>effective the day following final enactment.)</i> 
168.33     Sec. 15.  Minnesota Statutes 1998, section 126C.40, 
168.34  subdivision 4, is amended to read: 
168.35     Subd. 4.  [INTERACTIVE TELEVISION.] (a) A district with its 
168.36  central administrative office located within economic 
169.1   development region one, two, three, four, five, six, seven, 
169.2   eight, nine, and ten may apply to the commissioner for ITV 
169.3   revenue up to the greater of .5 .6 percent of the adjusted net 
169.4   tax capacity of the district or $25,000.  Eligible interactive 
169.5   television expenditures include the construction, maintenance, 
169.6   and lease costs of an interactive television system for 
169.7   instructional purposes.  An eligible school district that has 
169.8   completed the construction of its interactive television system 
169.9   may also purchase computer hardware and software used primarily 
169.10  for instructional purposes and access to the Internet provided 
169.11  that its total expenditures for interactive television 
169.12  maintenance and lease costs and for computer hardware and 
169.13  software under this subdivision do not exceed its interactive 
169.14  television revenue for fiscal year 1998.  The approval by the 
169.15  commissioner and the application procedures set forth in 
169.16  subdivision 1 shall apply to the revenue in this subdivision.  
169.17  In granting the approval, the commissioner shall consider 
169.18  whether the district is maximizing efficiency through peak use 
169.19  and off-peak use pricing structures. 
169.20     (b) To obtain ITV revenue, a district may levy an amount 
169.21  not to exceed the district's ITV revenue times the lesser of one 
169.22  or the ratio of: 
169.23     (1) the quotient derived by dividing the adjusted net tax 
169.24  capacity of the district for the year before the year the levy 
169.25  is certified by the resident adjusted pupil units in the 
169.26  district for the year to which the levy is attributable; to 
169.27     (2) $10,000 $8,404.  
169.28     (c) A district's ITV aid is the difference between its ITV 
169.29  revenue and the ITV levy. 
169.30     (d) The revenue in the first year after reorganization for 
169.31  a district that has reorganized under sections 123A.35 to 
169.32  123A.41, 123A.46, or 123A.48 shall be the greater of: 
169.33     (1) the revenue computed for the reorganized district under 
169.34  paragraph (a), or 
169.35     (2)(i) for two districts that reorganized, 75 percent of 
169.36  the revenue computed as if the districts involved in the 
170.1   reorganization were separate, or 
170.2      (ii) for three or more districts that reorganized, 50 
170.3   percent of the revenue computed as if the districts involved in 
170.4   the reorganization were separate. 
170.5      (e) The revenue in paragraph (d) is increased by the 
170.6   difference between the initial revenue and ITV lease costs for 
170.7   leases that had been entered into by the preexisting districts 
170.8   on the effective date of the consolidation or combination and 
170.9   with a term not exceeding ten years.  This increased revenue is 
170.10  only available for the remaining term of the lease.  However, in 
170.11  no case shall the revenue exceed the amount available had the 
170.12  preexisting districts received revenue separately. 
170.13     (f) Effective for fiscal year 2000, the revenue under this 
170.14  section shall be 75 percent of the amount determined in 
170.15  paragraph (a); for fiscal year 2001, 50 percent of the amount in 
170.16  paragraph (a); and for fiscal year 2002, 25 percent of the 
170.17  amount in paragraph (a). 
170.18     (g) This section subdivision expires effective for revenue 
170.19  for fiscal year 2003, or when leases in existence on the 
170.20  effective date of Laws 1997, First Special Session chapter 4, 
170.21  expire.  
170.22     <i>(Effective date:  Section 15 (126C.40, subdivision 4) is</i> 
170.23  <i>effective for revenue for fiscal year 2000 and later.)</i> 
170.24     Sec. 16.  Minnesota Statutes 1998, section 126C.40, 
170.25  subdivision 6, is amended to read: 
170.26     Subd. 6.  [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 
170.27  application to, and approval by, the commissioner in accordance 
170.28  with the procedures and limits in subdivision 1, paragraphs (a) 
170.29  and (b), a district, as defined in this subdivision, may: 
170.30     (1) purchase real or personal property under an installment 
170.31  contract or may lease real or personal property with an option 
170.32  to purchase under a lease purchase agreement, by which 
170.33  installment contract or lease purchase agreement title is kept 
170.34  by the seller or vendor or assigned to a third party as security 
170.35  for the purchase price, including interest, if any; and 
170.36     (2) annually levy increase its equalized facilities revenue 
171.1   under section 123B.53, subdivision 5, by the amounts necessary 
171.2   to pay the district's obligations under the installment contract 
171.3   or lease purchase agreement. 
171.4      (b) The obligation created by the installment contract or 
171.5   the lease purchase agreement must not be included in the 
171.6   calculation of net debt for purposes of section 475.53, and does 
171.7   not constitute debt under other law.  An election is not 
171.8   required in connection with the execution of the installment 
171.9   contract or the lease purchase agreement. 
171.10     (c) The proceeds of the levy equalized facilities revenue 
171.11  increase authorized by this subdivision must not be used to 
171.12  acquire a facility to be primarily used for athletic or school 
171.13  administration purposes. 
171.14     (d) For the purposes of this subdivision, "district" means: 
171.15     (1) a school district required to have a comprehensive plan 
171.16  for the elimination of segregation whose plan has been 
171.17  determined by the commissioner to be in compliance with the 
171.18  state board of education rules relating to equality of 
171.19  educational opportunity and school desegregation; or 
171.20     (2) a school district that participates in a joint program 
171.21  for interdistrict desegregation with a district defined in 
171.22  clause (1) if the facility acquired under this subdivision is to 
171.23  be primarily used for the joint program. 
171.24     (e) Notwithstanding subdivision 1, the prohibition against 
171.25  a levy by a district to lease receiving revenue for the purpose 
171.26  of leasing or rent renting a district-owned building to itself 
171.27  does not apply to levies revenues otherwise authorized by this 
171.28  subdivision. 
171.29     (f) For the purposes of this subdivision, any references in 
171.30  subdivision 1 to building or land shall include personal 
171.31  property. 
171.32     <i>(Effective date:  Section 16 (126C.40, subdivision 6) is</i> 
171.33  <i>effective the day following final enactment.)</i> 
171.34     Sec. 17.  Minnesota Statutes 1998, section 126C.55, is 
171.35  amended by adding a subdivision to read: 
171.36     Subd. 10.  [CONTINUING DISCLOSURE AGREEMENTS.] The 
172.1   commissioner of finance may enter into written agreements or 
172.2   contracts relating to the continuing disclosure of information 
172.3   necessary to facilitate the issuance of debt obligations by 
172.4   school districts in accordance with federal securities laws, 
172.5   rules, and regulations, including securities and exchange 
172.6   commission rules and regulations, section 240.15c2-12.  Such 
172.7   agreements or contracts may be in any form deemed reasonable and 
172.8   in the best interests of the state by the commissioner of 
172.9   finance. 
172.10     <i>(Effective date:  Section 17 (126C.55, subdivision 10) is</i> 
172.11  <i>effective the day following final enactment.)</i> 
172.12     Sec. 18.  Minnesota Statutes 1998, section 126C.63, 
172.13  subdivision 8, is amended to read: 
172.14     Subd. 8.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 
172.15  effort debt service levy" means the lesser of: 
172.16     (1) a levy in whichever of the following amounts is 
172.17  applicable: 
172.18     (a) in any district receiving a debt service loan for a 
172.19  debt service levy payable in 1991 and thereafter, or granted a 
172.20  capital loan after January 1, 1990, a levy in a total dollar 
172.21  amount computed at a rate of 20 24 percent of adjusted net tax 
172.22  capacity for taxes payable in 1991 and thereafter; 
172.23     (b) in any district granted a debt service loan after July 
172.24  31, 1981, or granted a capital loan which is approved after July 
172.25  31, 1981, a levy in a total dollar amount computed as a tax rate 
172.26  of 13.08 percent on the adjusted gross tax capacity for taxes 
172.27  payable in 1990 or a tax rate of 18.42 21.92 percent on the 
172.28  adjusted net tax capacity for taxes payable in 1991 and 
172.29  thereafter; 
172.30     (c) in any district granted a debt service loan before 
172.31  August 1, 1981, or granted a capital loan which was approved 
172.32  before August 1, 1981, a levy in a total dollar amount computed 
172.33  as a tax rate of 12.26 percent on the adjusted gross tax 
172.34  capacity for taxes payable in 1990 or a tax rate of 17.17 
172.35  percent on the adjusted net tax capacity for taxes payable in 
172.36  1991 and thereafter, until and unless the district receives an 
173.1   additional loan; or 
173.2      (2) a levy in whichever of the following amounts is 
173.3   applicable: 
173.4      (a) in any district which received a debt service or 
173.5   capital loan from the state before January 1, 1965, a levy in a 
173.6   total dollar amount computed as 4.10 mills on the market value 
173.7   in each year, unless the district applies or has applied for an 
173.8   additional loan subsequent to January 1, 1965, or issues or has 
173.9   issued bonds on the public market, other than bonds refunding 
173.10  state loans, subsequent to January 1, 1967; 
173.11     (b) in any district granted a debt service or capital loan 
173.12  between January 1, 1965, and July 1, 1969, a levy in a total 
173.13  dollar amount computed as 5-1/2 mills on the market value in 
173.14  each year, until and unless the district receives an additional 
173.15  loan; 
173.16     (c) in any district granted a debt service or capital loan 
173.17  between July 1, 1969, and July 1, 1975, a levy in a total dollar 
173.18  amount computed as 6.3 mills on market value in each year until 
173.19  and unless the district has received an additional loan; 
173.20     (d) in any district for which a capital loan was approved 
173.21  prior to August 1, 1981, a levy in a total dollar amount equal 
173.22  to the sum of the amount of the required debt service levy and 
173.23  an amount which when levied annually will in the opinion of the 
173.24  commissioner be sufficient to retire the remaining interest and 
173.25  principal on any outstanding loans from the state within 30 
173.26  years of the original date when the capital loan was granted.  
173.27     The board in any district affected by the provisions of 
173.28  clause (2)(d) may elect instead to determine the amount of its 
173.29  levy according to the provisions of clause (1).  If a district's 
173.30  capital loan is not paid within 30 years because it elects to 
173.31  determine the amount of its levy according to the provisions of 
173.32  clause (2)(d), the liability of the district for the amount of 
173.33  the difference between the amount it levied under clause (2)(d) 
173.34  and the amount it would have levied under clause (1), and for 
173.35  interest on the amount of that difference, must not be satisfied 
173.36  and discharged pursuant to Minnesota Statutes 1988, or an 
174.1   earlier edition of Minnesota Statutes if applicable, section 
174.2   124.43, subdivision 4. 
174.3      <i>(Effective date:  Section 18 (126C.63, subdivision 8) is</i> 
174.4   <i>effective for revenue for fiscal year 2000 and later.)</i> 
174.5      Sec. 19.  Minnesota Statutes 1998, section 126C.69, 
174.6   subdivision 2, is amended to read: 
174.7      Subd. 2.  [CAPITAL LOANS ELIGIBILITY.] Beginning July 
174.8   1, 1992 1999, a district is not eligible for a capital loan 
174.9   unless the district's estimated net debt tax rate as computed by 
174.10  the commissioner after debt service equalization aid would be 
174.11  more than 20 24 percent of adjusted net tax capacity.  The 
174.12  estimate must assume a 20-year maturity schedule for new debt. 
174.13     <i>(Effective date:  Section 19 (126C.69, subdivision 2) is</i> 
174.14  <i>effective for revenue for fiscal year 2000 and later.)</i> 
174.15     Sec. 20.  Minnesota Statutes 1998, section 126C.69, 
174.16  subdivision 9, is amended to read: 
174.17     Subd. 9.  [LOAN AMOUNT LIMITS.] (a) A loan must not be 
174.18  recommended for approval for a district exceeding an amount 
174.19  computed as follows: 
174.20     (1) the amount requested by the district under subdivision 
174.21  6; 
174.22     (2) plus the aggregate principal amount of general 
174.23  obligation bonds of the district outstanding on June 30 of the 
174.24  year following the year the application was received, not 
174.25  exceeding the limitation on net debt of the district in section 
174.26  475.53, subdivision 4, or 305 363 percent of its adjusted net 
174.27  tax capacity as most recently determined, whichever is less; 
174.28     (3) less the maximum net debt permissible for the district 
174.29  on December 1 of the year the application is received, under the 
174.30  limitation in section 475.53, subdivision 4, or 305 363 percent 
174.31  of its adjusted net tax capacity as most recently determined, 
174.32  whichever is less; 
174.33     (4) less any amount by which the amount voted exceeds the 
174.34  total cost of the facilities for which the loan is granted.  
174.35     (b) The loan may be approved in an amount computed as 
174.36  provided in paragraph (a), clauses (1) to (3), subject to later 
175.1   reduction according to paragraph (a), clause (4). 
175.2      Sec. 21.  Minnesota Statutes 1998, section 126C.69, 
175.3   subdivision 15, is amended to read: 
175.4      Subd. 15.  [BOND SALE LIMITATIONS.] A district having an 
175.5   outstanding state loan must not issue and sell any bonds on the 
175.6   public market, except to refund state loans, unless it agrees to 
175.7   make the maximum effort debt service levy in each later year at 
175.8   the higher rate provided in section 126C.63, subdivision 8, and 
175.9   unless it schedules the maturities of the bonds according to 
175.10  section 475.54, subdivision 2.  A district that refunds bonds at 
175.11  a lower interest rate may continue to make the maximum effort 
175.12  debt service levy in each later year at the current rate 
175.13  provided in section 126C.63, subdivision 8, if the district can 
175.14  demonstrate to the commissioner's satisfaction that the 
175.15  district's repayments of the state loan will not be reduced 
175.16  below the previous year's level.  The district must report each 
175.17  sale to the commissioner. 
175.18     After a district's capital loan has been outstanding for 20 
175.19  30 years, the district must not issue bonds on the public market 
175.20  except to refund the loan. 
175.21     Sec. 22.  Laws 1995, First Special Session chapter 3, 
175.22  article 12, section 7, as amended by Laws 1997, First Special 
175.23  Session chapter 4, article 9, section 2, Laws 1998, chapter 270, 
175.24  section 4, and Laws 1998, chapter 359, section 20, is amended to 
175.25  read: 
175.26     Sec. 7.  [MINNESOTA EDUCATION TELECOMMUNICATIONS COUNCIL.] 
175.27     Subdivision 1.  [STATE COUNCIL MEMBERSHIP.] The membership 
175.28  of the Minnesota education telecommunications council 
175.29  established in Laws 1993, First Special Session chapter 2, is 
175.30  expanded to include representatives of elementary and secondary 
175.31  education.  The membership shall consist of three 
175.32  representatives from the University of Minnesota; three 
175.33  representatives of the board of trustees for Minnesota state 
175.34  colleges and universities; one representative of the higher 
175.35  education services offices; one representative appointed by the 
175.36  private college council; one representative selected by the 
176.1   commissioner of administration; eight representatives selected 
176.2   by the commissioner of children, families, and learning, at 
176.3   least one of which must come from each of the six higher 
176.4   education telecommunication regions; a representative from the 
176.5   office of technology; two members each from the senate and the 
176.6   house of representatives selected by the subcommittee on 
176.7   committees of the committee on rules and administration of the 
176.8   senate and the speaker of the house, one member from each body 
176.9   must be a member of the minority party; and three 
176.10  representatives of libraries, one representing regional public 
176.11  libraries, one representing multitype libraries, and one 
176.12  representing community libraries, selected by the governor.  The 
176.13  council shall: 
176.14     (1) develop a statewide vision and plans for the use of 
176.15  distance learning technologies and provide leadership in 
176.16  implementing the use of such technologies; 
176.17     (2) recommend to the commissioner and the legislature by 
176.18  December 15, 1996, a plan for long-term governance and a 
176.19  proposed structure for statewide and regional 
176.20  telecommunications; 
176.21     (3) recommend educational policy relating to 
176.22  telecommunications; 
176.23     (4) (3) determine priorities for use; 
176.24     (5) (4) oversee coordination of networks for post-secondary 
176.25  campuses, K-12 kindergarten through grade 12 education, and 
176.26  regional and community libraries; 
176.27     (6) (5) review application for telecommunications access 
176.28  grants under Minnesota Statutes, section 124C.74 125B.20, and 
176.29  recommend to the department grants for funding; 
176.30     (7) (6) determine priorities for grant funding proposals; 
176.31  and 
176.32     (8) (7) work with the information policy office to ensure 
176.33  consistency of the operation of the learning network with 
176.34  standards of an open system architecture. 
176.35     The council shall consult with representatives of the 
176.36  telecommunication industry in implementing this section.  
177.1      Subd. 2.  [DISTRICT COUNCIL MEMBERSHIP.] District 
177.2   organizations that coordinate applications for telecommunication 
177.3   access grants are encouraged to become members of the regional 
177.4   higher education telecommunication council in their area. 
177.5      Subd. 3.  [CRITERIA.] In addition to responsibilities of 
177.6   the council under Laws 1993, First Special Session chapter 2, as 
177.7   amended, the telecommunications council shall evaluate grant 
177.8   applications under Minnesota Statutes, section 124C.74 and 
177.9   applications from district organizations using the following 
177.10  criteria: 
177.11     (1) evidence of cooperative arrangements with other 
177.12  post-secondary institutions, school districts, and community and 
177.13  regional libraries in the geographic region; 
177.14     (2) plans for shared classes and programs; 
177.15     (3) avoidance of network duplication; 
177.16     (4) evidence of efficiencies to be achieved in delivery of 
177.17  instruction due to use of telecommunications; 
177.18     (5) a plan for development of a list of all courses 
177.19  available in the region for delivery at a distance; 
177.20     (6) a plan for coordinating and scheduling courses; and 
177.21     (7) a plan for evaluation of costs, access, and outcomes. 
177.22     Sec. 23.  Laws 1997, First Special Session chapter 4, 
177.23  article 9, section 13, is amended to read: 
177.24     Sec. 13.  [REPEALER.] 
177.25     (a) Minnesota Statutes 1996, section 124C.74, is repealed 
177.26  effective July 1, 1999.  
177.27     (b) Minnesota Statutes 1996, section 134.46, is repealed. 
177.28     <i>(Effective date:  Section 23 (Laws 1997, First Special</i> 
177.29  <i>Session chapter 4, article 9, section 13) is effective June 30,</i> 
177.30  <i>1999.)</i> 
177.31     Sec. 24.  Laws 1998, chapter 404, section 5, subdivision 5, 
177.32  is amended to read: 
177.33  Subd. 5.  Metropolitan Magnet Schools                22,200,000 
177.34  For awarding metropolitan magnet school 
177.35  grants to groups of qualified 
177.36  metropolitan school districts under 
177.37  Minnesota Statutes, section 124C.498.  
178.1   $1,900,000 is for the completion of the 
178.2   Downtown Integration magnet school in 
178.3   Minneapolis. 
178.4   $3,800,000 is for planning, design, 
178.5   acquisition of land, architectural 
178.6   fees, and engineering fees for the East 
178.7   Metropolitan Integration magnet school 
178.8   in the East Metropolitan area.  Of that 
178.9   amount, $2,800,000 is for land 
178.10  acquisition and site development.  
178.11  $14,500,000 is for the construction of 
178.12  the Metropolitan Integration magnet 
178.13  school in Robbinsdale. 
178.14  $2,000,000 is for the Southwest 
178.15  Metropolitan Integration magnet school 
178.16  in Edina. 
178.17     <i>(Effective date:  Section 24 (Laws 1998, chapter 404,</i> 
178.18  <i>section 5, subdivision 5) is effective the day following final</i> 
178.19  <i>enactment.)</i> 
178.20     Sec. 25.  [MCGREGOR LEVY.] 
178.21     Beginning with taxes payable in 2000, independent school 
178.22  district No. 4, McGregor, may levy $32,000 each year for eight 
178.23  years for the amount of energy improvements that the district 
178.24  made with the intention of complying with Minnesota Statutes, 
178.25  section 216C.37. 
178.26     Sec. 26.  [HEALTH AND SAFETY; PROCTOR.] 
178.27     Notwithstanding any law to the contrary, independent school 
178.28  district No. 704, Proctor, may include in its health and safety 
178.29  program the amounts necessary to make health and safety 
178.30  improvements to an ice arena located within the district 
178.31  boundaries in order for the district to use the facility to meet 
178.32  the district's curriculum needs under the state graduation 
178.33  rule.  The district must attempt to renegotiate its lease 
178.34  agreement with the county that operates the arena before it is 
178.35  eligible for health and safety revenue under this section.  The 
178.36  total amount of revenue approved for this purpose shall not 
178.37  exceed $150,000. 
178.38     Sec. 27.  [DISTRICTS ELIGIBLE FOR ALTERNATIVE FACILITIES 
178.39  REVENUE PROGRAM.] 
178.40     Subdivision 1.  [INDEPENDENT SCHOOL DISTRICT NO. 834, 
178.41  STILLWATER.] Independent school district No. 834, Stillwater, is 
178.42  eligible for the alternative facilities revenue program under 
179.1   Minnesota Statutes, section 123B.59, for the purposes of 
179.2   financing school facilities in the district. 
179.3      Subd. 2.  [INDEPENDENT SCHOOL DISTRICT NO. 621, MOUNDS 
179.4   VIEW.] Independent school district No. 621, Mounds View, is 
179.5   eligible for the alternative facilities revenue program under 
179.6   Minnesota Statutes, section 123B.59, for the purposes of 
179.7   financing school facilities in the district. 
179.8      Subd. 3.  [INDEPENDENT SCHOOL DISTRICT NO. 622, NORTH ST. 
179.9   PAUL-MAPLEWOOD-OAKDALE.] Independent school district No. 622, 
179.10  North St. Paul-Maplewood-Oakdale, is eligible for the 
179.11  alternative facilities revenue program under Minnesota Statutes, 
179.12  section 123B.59, for the purposes of financing school facilities 
179.13  in the district. 
179.14     Subd. 4.  [INDEPENDENT SCHOOL DISTRICT NO. 624, WHITE BEAR 
179.15  LAKE.] Independent school district No. 624, White Bear Lake, is 
179.16  eligible for the alternative facilities revenue program under 
179.17  Minnesota Statutes, section 123B.59, for the purposes of 
179.18  financing school facilities in the district. 
179.19     Subd. 5.  [COMPLIANCE WITH SUPERINTENDENT REPORT.] In order 
179.20  to be eligible for the alternative facilities revenue program 
179.21  according to this section, the district must comply with 
179.22  Minnesota Statutes, section 123B.143, subdivision 1, clause (5). 
179.23     Sec. 28.  [ELK RIVER DEBT SERVICE LOAN TAX ADJUSTMENT.] 
179.24     The department shall recompute the maximum tax rate 
179.25  required under Minnesota Statutes, section 126C.63, subdivision 
179.26  8, for taxes payable in 2000 and thereafter for independent 
179.27  school district No. 728, Elk River.  The recomputation shall 
179.28  adjust for the difference in property tax base in the district 
179.29  relative to the state average as determined under Laws 1997, 
179.30  First Special Session chapter 4, article 1, section 61, 
179.31  subdivision 2. 
179.32     Sec. 29.  [RESIDENTIAL ACADEMIES.] 
179.33     If a recipient has been awarded a grant under Laws 1998, 
179.34  chapter 398, article 5, section 46, and fails to meet the 
179.35  requirements under the application process for implementing the 
179.36  program after June 30, 1999, any grant money awarded but not 
180.1   paid shall not cancel but is appropriated to the commissioner 
180.2   for new grants.  The commissioner may reopen the application 
180.3   process with any funds made available.  The commissioner shall 
180.4   consider an application that proposes to use the state facility 
180.5   at Sauk Centre for the program.  Notwithstanding any law enacted 
180.6   during the 1999 session, if a recipient proposes to use the 
180.7   state facility at Sauk Centre, the facility shall transfer to 
180.8   the commissioner of administration. 
180.9      Sec. 30.  [APPROPRIATION.] 
180.10     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
180.11  LEARNING.] The sums indicated in this section are appropriated 
180.12  from the general fund to the department of children, families, 
180.13  and learning for the fiscal years designated. 
180.14     Subd. 2.  [FACILITIES EQUALIZATION AID.] For facilities 
180.15  equalization aid according to Minnesota Statutes, section 
180.16  123B.53, subdivision 6: 
180.17       $66,751,000    .....     2000 
180.18       $66,894,000    .....     2001 
180.19     The 2000 appropriation includes $6,957,000 for 1999 and 
180.20  $59,794,000 for 2000.  The 2001 appropriation includes 
180.21  $6,640,000 for 2000 and $60,254,000 for 2001. 
180.22     Subd. 3.  [INTERACTIVE TELEVISION (ITV) AID.] For 
180.23  interactive television (ITV) aid according to Minnesota 
180.24  Statutes, section 126C.40, subdivision 4: 
180.25       $4,197,000     .....     2000 
180.26       $2,851,000     .....     2001 
180.27     The 2000 appropriation includes $405,000 for 1999 and 
180.28  $3,792,000 for 2000.  The 2001 appropriation includes $421,000 
180.29  for 2000 and $2,430,000 for 2001. 
180.30     Subd. 4.  [ONE-TIME INFRASTRUCTURE GRANTS.] For grants for 
180.31  infrastructure improvement: 
180.32       $1,082,000     .....     2000 
180.33     Of this amount, $50,000 is for independent school district 
180.34  No. 23, Frazee; $150,000 is for independent school district No. 
180.35  659, Northfield; $300,000 is for independent school district No. 
180.36  392, Le Center; $316,000 is for independent school district No. 
181.1   31, Bemidji; and $266,000 is for independent school district No. 
181.2   542, Battle Lake.  These grants must be used to improve and 
181.3   update the district's school infrastructure including facilities 
181.4   purposes that lead to greater program efficiencies, technology 
181.5   infrastructure, or building maintenance. 
181.6      Subd. 5.  [FACILITY GRANT; BROOKLYN CENTER.] For a grant to 
181.7   independent school district No. 286, Brooklyn Center, a district 
181.8   impacted by statutory operating debt, for replacement of two 
181.9   boilers and one chiller: 
181.10       $150,000       .....     2000 
181.11     This appropriation is available until June 30, 2001. 
181.12     Subd. 6.  [DISASTER RELIEF FACILITIES GRANT; COMFREY.] For 
181.13  a disaster relief facilities grant to independent school 
181.14  district No. 81, Comfrey: 
181.15       $450,000       .....     2000 
181.16     This appropriation is available until June 30, 2001. 
181.17     This grant is for facilities replacement costs not covered 
181.18  by the district's insurance settlement or through federal 
181.19  emergency management agency payments. 
181.20     Subd. 7.  [DISASTER RELIEF FACILITIES GRANT; ST. 
181.21  PETER.] For a disaster relief facilities grant to independent 
181.22  school district No. 508, St. Peter: 
181.23       $600,000       .....     2000 
181.24     This grant is for facilities replacement costs not covered 
181.25  by the district's insurance settlement or through federal 
181.26  emergency management agency payments.  
181.27     This appropriation is available until June 30, 2001. 
181.28     Subd. 8.  [PLANNING GRANT; MINNESOTA RIVER VALLEY EDUCATION 
181.29  DISTRICT.] For a matching grant to the Minnesota river valley 
181.30  education district to develop a plan for the co-location of 
181.31  Minnesota river valley education district, including its area 
181.32  learning center, and southwest Minnesota workforce development 
181.33  center facilities, including the collaboration of the delivery 
181.34  of their services: 
181.35       $50,000        .....     2000 
181.36     The outcomes of the matching planning grant are to: 
182.1      (1) develop a coordinated plan to improve the delivery of 
182.2   services through the co-location of the participating district's 
182.3   and workforce center's programs and services; 
182.4      (2) offer services through various educational and 
182.5   workforce center programs that will help students meet state 
182.6   graduation requirements; and 
182.7      (3) examine licensing issues that may prevent the most 
182.8   efficient use of shared staffing. 
182.9      The commissioner shall award the grant to the Minnesota 
182.10  river valley education district contingent upon the district 
182.11  demonstrating that it will match the grant amount with revenue 
182.12  contributed from member school districts and the workforce 
182.13  development center. 
182.14     This appropriation is available until June 30, 2001. 
182.15     Subd. 9.  [URBAN LEAGUE STREET ACADEMY.] For a grant to 
182.16  special school district No. 1, Minneapolis, for the urban league 
182.17  street academy for the costs of acquiring and moving to a larger 
182.18  building to expand the academy's program: 
182.19       $750,000       .....     2000 
182.20     This appropriation is available until June 30, 2001. 
182.21     Subd. 10.  [JACKSON COUNTY CENTRAL.] For a grant to 
182.22  independent school district No. 2862, Jackson County Central, 
182.23  for unanticipated costs related to facilities and consolidating 
182.24  the Jackson and Lakefield school districts: 
182.25       $90,000        .....     2000 
182.26     This appropriation is available until June 30, 2001. 
182.27     Subd. 11.  [HOLDINGFORD GRANT.] For a grant to independent 
182.28  school district No. 738, Holdingford, for a one-time grant to 
182.29  bring the girls locker room into Title IX compliance and to 
182.30  complete the construction on a school theater. 
182.31       $200,000       .....     2000 
182.32     This appropriation is available until June 30, 2001. 
182.33     Subd. 12.  [WADENA-DEER CREEK PILOT GRANT.] For a grant to 
182.34  independent school district No. 2155, Wadena-Deer Creek, for a 
182.35  pilot project to use technology to support instruction in 
182.36  mathematics and reading. 
183.1        $111,000       .....     2000 
183.2      This appropriation is available until June 30, 2001. 
183.3      Subd. 13.  [YEAR-ROUND OPTIONAL SCHOOL; 
183.4   CAMBRIDGE-ISANTI.] For a grant to independent school district 
183.5   No. 911, Cambridge-Isanti:  
183.6        $100,000       .....     2000 
183.7      This appropriation must be used for initial facility costs 
183.8   relating to the district's year-round optional school that 
183.9   assists in reducing elementary teacher-to-student ratios, 
183.10  including expenses to conform leased space to building code 
183.11  requirements. 
183.12     Subd. 14.  [COOPERATIVE SECONDARY FACILITY; PLANNING AND 
183.13  EXPENSES.] For a grant and administrative expenses to facilitate 
183.14  planning for a cooperative secondary facility under a joint 
183.15  powers agreement for school district Nos. 411, Balaton, 402, 
183.16  Ivanhoe, 404, Lake Benton, 418, Russell, 584, Ruthton, and 409, 
183.17  Tyler: 
183.18       $100,000       .....     2000 
183.19     Subd. 15.  [TELECOMMUNICATION ACCESS GRANTS.] For 
183.20  telecommunication access grants according to Minnesota Statutes, 
183.21  section 125B.20: 
183.22       $5,000,000     .....     2000 
183.23     This appropriation is available until June 30, 2001. 
183.24     Sec. 31.  [REPEALER.] 
183.25     (a) Minnesota Statutes 1998, sections 123A.44; 123A.441; 
183.26  123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 123B.57, 
183.27  subdivisions 4, 5, and 7; 123B.59, subdivision 7; 123B.63, 
183.28  subdivisions 1 and 2; 123B.66; 123B.67; 123B.68; and 123B.69, 
183.29  are repealed effective the day following final enactment. 
183.30     (b) Minnesota Statutes 1998, section 123B.58, is repealed 
183.31  effective July 1, 2004. 
183.32     (c) Minnesota Rules, parts 3500.3900; 3500.4000; 3500.4100; 
183.33  3500.4200; and 3500.4300, are repealed. 
183.34     Sec. 32.  [REVISOR INSTRUCTION.] 
183.35     (a) In the next and subsequent editions of Minnesota 
183.36  Statutes, the revisor shall codify section 23 as Minnesota 
184.1   Statutes, section 125B.21. 
184.2      (b) In the next and subsequent editions of Minnesota 
184.3   Statutes, the revisor shall change the headnote of section 
184.4   123B.63 from "BUILDING CONSTRUCTION DOWN PAYMENT PROGRAM" to 
184.5   "BUILDING CONSTRUCTION DOWN PAYMENT AND LEASE PROGRAM." 
184.6      Sec. 33.  [EFFECTIVE DATES.] 
184.7      When preparing the prekindergarten through grade 12 
184.8   education conference committee report for adoption by the 
184.9   legislature, the revisor shall combine all effective date 
184.10  notations in this article into this effective date section. 
184.11                             ARTICLE 5 
184.12                        EDUCATION EXCELLENCE 
184.13     Section 1.  Minnesota Statutes 1998, section 41D.02, 
184.14  subdivision 2, is amended to read: 
184.15     Subd. 2.  [ELEMENTARY AND SECONDARY AGRICULTURAL 
184.16  EDUCATION.] The council may provide grants for: 
184.17     (1) planning and establishment costs for elementary and 
184.18  secondary agriculture education programs; 
184.19     (2) new instructional and communication technologies; and 
184.20     (3) curriculum updates. 
184.21     Sec. 2.  Minnesota Statutes 1998, section 123A.05, is 
184.22  amended by adding a subdivision to read: 
184.23     Subd. 5.  [BUILDING LEASE AID.] When an area learning 
184.24  center or a contracted alternative school finds it economically 
184.25  advantageous to rent or lease a building or land for any 
184.26  instructional purpose and it determines that the total operating 
184.27  capital revenue under section 126C.10, subdivision 13, is 
184.28  insufficient for this purpose, it may apply to the commissioner 
184.29  for building lease aid for this purpose.  Criteria for aid 
184.30  approval and revenue uses shall be as defined for the building 
184.31  lease levy in section 126C.40, subdivision 1, paragraphs (a) and 
184.32  (b).  The amount of building lease aid per pupil unit served for 
184.33  an area learning center or a contracted alternative school for 
184.34  any year shall not exceed the lesser of:  (1) 80 percent of the 
184.35  approved cost; or (2) the product of the pupil units served for 
184.36  the current school year times the sum of the state average debt 
185.1   redemption fund revenue plus capital revenue, according to 
185.2   section 126C.40, per pupil unit served for the current fiscal 
185.3   year.  Area learning centers and contracted alternatives may not 
185.4   purchase land or buildings with money received from the state. 
185.5      <i>(Effective date:  Section 2 (123A.05, subdivision 5) is</i> 
185.6   <i>effective the day following final enactment.)</i> 
185.7      Sec. 3.  Minnesota Statutes 1998, section 124D.10, 
185.8   subdivision 3, is amended to read: 
185.9      Subd. 3.  [SPONSOR; GRANT.] A school board, intermediate 
185.10  school district school board, education districts organized 
185.11  under sections 123A.15 to 123A.19, private college, community 
185.12  college, state university, technical college, or the University 
185.13  of Minnesota may sponsor one or more charter schools. 
185.14     Sec. 4.  Minnesota Statutes 1998, section 124D.10, 
185.15  subdivision 4, is amended to read: 
185.16     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
185.17  authorize one or more licensed teachers under section 122A.18, 
185.18  subdivision 1, to operate a charter school subject to approval 
185.19  by the state board.  A board must vote on charter school 
185.20  application for sponsorship no later than 60 days after receipt 
185.21  of the application.  After 60 days, the applicant may apply to 
185.22  the state board.  If a board elects not to sponsor a charter 
185.23  school, the applicant may appeal the board's decision to the 
185.24  state board if two members of the board voted to sponsor the 
185.25  school.  If the state board authorizes the school, the state 
185.26  board must sponsor the school according to this section.  The 
185.27  school must be organized and operated as a cooperative under 
185.28  chapter 308A or nonprofit corporation under chapter 317A.  
185.29     (b) Before the operators may form and operate a school, the 
185.30  sponsor must file an affidavit with the state board stating its 
185.31  intent to authorize a charter school.  The affidavit must state 
185.32  the terms and conditions under which the sponsor would authorize 
185.33  a charter school.  The state board must approve or disapprove 
185.34  the sponsor's proposed authorization within 60 days of receipt 
185.35  of the affidavit.  Failure to obtain state board approval 
185.36  precludes a sponsor from authorizing the charter school that was 
186.1   the subject of the affidavit.  
186.2      (c) The operators authorized to organize and operate a 
186.3   school must hold an election for members of the school's board 
186.4   of directors in a timely manner after the school is operating.  
186.5   Any staff members who are employed at the school, including 
186.6   teachers providing instruction under a contract with a 
186.7   cooperative, and all parents of children enrolled in the school 
186.8   may participate in the election.  Licensed teachers employed at 
186.9   the school, including teachers providing instruction under a 
186.10  contract with a cooperative, must be a majority of the members 
186.11  of the board of directors, unless the state board waives the 
186.12  requirement for the school.  A provisional board may operate 
186.13  before the election of the school's board of directors.  Board 
186.14  of director meetings must comply with section 471.705. 
186.15     (d) The granting or renewal of a charter by a sponsoring 
186.16  entity must not be conditioned upon the bargaining unit status 
186.17  of the employees of the school.  
186.18     Sec. 5.  Minnesota Statutes 1998, section 124D.10, 
186.19  subdivision 5, is amended to read: 
186.20     Subd. 5.  [CONVERSION OF EXISTING SCHOOLS.] A board may 
186.21  convert one or more of its existing schools to charter schools 
186.22  under this section if 90 60 percent of the full-time teachers at 
186.23  the school sign a petition seeking conversion.  The conversion 
186.24  must occur at the beginning of an academic year.  
186.25     Sec. 6.  Minnesota Statutes 1998, section 124D.10, 
186.26  subdivision 6, is amended to read: 
186.27     Subd. 6.  [CONTRACT.] The sponsor's authorization for a 
186.28  charter school must be in the form of a written contract signed 
186.29  by the sponsor and the board of directors of the charter 
186.30  school.  The contract must be completed within 90 days of the 
186.31  state board approval of the sponsor's proposed authorization.  
186.32  The contract for a charter school must be in writing and contain 
186.33  at least the following: 
186.34     (1) a description of a program that carries out one or more 
186.35  of the purposes in subdivision 1; 
186.36     (2) specific outcomes pupils are to achieve under 
187.1   subdivision 10; 
187.2      (3) admission policies and procedures; 
187.3      (4) management and administration of the school; 
187.4      (5) requirements and procedures for program and financial 
187.5   audits; 
187.6      (6) how the school will comply with subdivisions 8, 13, 16, 
187.7   and 23; 
187.8      (7) assumption of liability by the charter school; 
187.9      (8) types and amounts of insurance coverage to be obtained 
187.10  by the charter school; 
187.11     (9) the term of the contract, which may be up to three 
187.12  years; and 
187.13     (10) if the board of directors or the operators of the 
187.14  charter school provide special instruction and services for 
187.15  children with a disability under sections 125A.03 to 125A.24, 
187.16  and 125A.65, a description of the financial parameters within 
187.17  which the charter school will operate to provide the special 
187.18  instruction and services to children with a disability. 
187.19     Sec. 7.  Minnesota Statutes 1998, section 124D.10, 
187.20  subdivision 11, is amended to read: 
187.21     Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 
187.22  charter school must employ or contract with necessary teachers, 
187.23  as defined by section 122A.15, subdivision 1, who hold valid 
187.24  licenses to perform the particular service for which they are 
187.25  employed in the school.  The school may employ necessary 
187.26  employees who are not required to hold teaching licenses to 
187.27  perform duties other than teaching and may contract for other 
187.28  services.  The school may discharge teachers and nonlicensed 
187.29  employees.  A person, without holding a valid administrator's 
187.30  license, may perform administrative, supervisory, or 
187.31  instructional leadership duties. 
187.32     The board of directors also shall decide matters related to 
187.33  the operation of the school, including budgeting, curriculum and 
187.34  operating procedures.  
187.35     <i>(Effective date:  Section 7 (124D.10, subdivision 11) is</i> 
187.36  <i>effective for the 1999-2000 school year and thereafter.)</i> 
188.1      Sec. 8.  Minnesota Statutes 1998, section 124D.11, 
188.2   subdivision 4, is amended to read: 
188.3      Subd. 4.  [BUILDING LEASE AID.] When a charter school finds 
188.4   it economically advantageous to rent or lease a building or land 
188.5   for any instructional purposes and it determines that the total 
188.6   operating capital revenue under section 126C.10, subdivision 13, 
188.7   is insufficient for this purpose, it may apply to the 
188.8   commissioner for building lease aid for this purpose.  Criteria 
188.9   for aid approval and revenue uses shall be as defined for the 
188.10  building lease levy in section 126C.40, subdivision 1, 
188.11  paragraphs (a) and (b).  The amount of building lease aid per 
188.12  pupil unit served for a charter school for any year shall not 
188.13  exceed the lesser of (a) 80 90 percent of the approved cost or 
188.14  (b) the product of the pupil units served for the current school 
188.15  year times the sum of the state average debt redemption fund 
188.16  revenue plus capital revenue, according to section 126C.40, per 
188.17  pupil unit served for the current fiscal year $1,500. 
188.18     Sec. 9.  Minnesota Statutes 1998, section 124D.11, 
188.19  subdivision 6, is amended to read: 
188.20     Subd. 6.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
188.21  school is eligible to receive other aids, grants, and revenue 
188.22  according to chapters 120A to 129C, as though it were a district.
188.23  except that, notwithstanding section 127A.45, subdivision 3, the 
188.24  payments must be of an equal amount on each of the 23 payment 
188.25  dates unless a charter school is in its first year of operation 
188.26  in which case it shall receive on its first payment date ten 
188.27  percent of its cumulative amount guaranteed for the year and 22 
188.28  payments of an equal amount thereafter the sum of which shall be 
188.29  90 percent of the cumulative amount guaranteed.  However, it 
188.30     (b) Notwithstanding paragraph (a), a charter school may not 
188.31  receive aid, a grant, or revenue if a levy is required to obtain 
188.32  the money, except as otherwise provided in this section.  
188.33     (c) Federal aid received by the state must be paid to the 
188.34  school, if it qualifies for the aid as though it were a school 
188.35  district. 
188.36     (b) (d) A charter school may receive money from any source 
189.1   for capital facilities needs.  In the year-end report to the 
189.2   state board of education, the charter school shall report the 
189.3   total amount of funds received from grants and other outside 
189.4   sources. 
189.5      (e) Notwithstanding paragraph (a) or (b), a charter school 
189.6   is eligible to receive the aid portion of integration revenue 
189.7   under section 124D.86, subdivision 3, for enrolled students who 
189.8   are residents of a district that is eligible for integration 
189.9   revenue. 
189.10     Sec. 10.  Minnesota Statutes 1998, section 124D.11, is 
189.11  amended by adding a subdivision to read: 
189.12     Subd. 9.  [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 
189.13  Notwithstanding section 127A.45, subdivision 3, aid payments for 
189.14  the current fiscal year to a charter school not in its first 
189.15  year of operation shall be of an equal amount on each of the 23 
189.16  payment dates.  A charter school in its first year of operation 
189.17  shall receive, on its first payment date, ten percent of its 
189.18  cumulative amount guaranteed for the year and 22 payments of an 
189.19  equal amount thereafter the sum of which shall be 90 percent of 
189.20  the cumulative amount guaranteed. 
189.21     (b) Notwithstanding section 127A.45, subdivision 3, and 
189.22  paragraph (a), 90 percent of the start-up cost aid under 
189.23  subdivision 8 shall be paid within 30 days of receipt of a fall 
189.24  enrollment report from the charter school. 
189.25     Sec. 11.  Minnesota Statutes 1998, section 124D.11, is 
189.26  amended by adding a subdivision to read: 
189.27     Subd. 10.  [COMPENSATION REVENUE PUPIL UNITS; GROWTH 
189.28  COSTS.] A charter school that experiences growth in excess of 20 
189.29  percent of its compensation revenue pupil units computed 
189.30  according to section 126C.05, subdivision 3, in a single year is 
189.31  eligible for compensatory revenue equal to the formula allowance 
189.32  times the difference between the charter school's compensation 
189.33  revenue pupil units in the current year minus the compensation 
189.34  revenue pupil units served in the previous year. 
189.35     Sec. 12.  Minnesota Statutes 1998, section 124D.90, is 
189.36  amended to read: 
190.1      124D.90 [SCHOOL AND COMMUNITY ENRICHMENT PARTNERSHIP 
190.2   PROGRAM.] 
190.3      Subdivision 1.  [ESTABLISHMENT.] The school and community 
190.4   enrichment partnership program is established.  The purpose of 
190.5   the program is to encourage districts to expand the involvement 
190.6   of the community and the private sector in the delivery of 
190.7   academic programs.  The program will provide matching state 
190.8   funds for those provided by the private sector resources. 
190.9      Subd. 2.  [REVENUE ELIGIBILITY.] A district or group of 
190.10  districts is eligible to receive state aid a grant under this 
190.11  program.  Districts may enter into joint agreements to provide 
190.12  programs or make expenditures under this section.  The 
190.13  limitations under this subdivision apply to these programs or 
190.14  expenditures as if they were operated by a single district.  A 
190.15  district may receive $1 of state aid grant money for each $2 
190.16  raised from the private sector.  The private match must be in 
190.17  the form of cash.  Specific types of noncash support may be 
190.18  considered for the private match.  State aid A grant is limited 
190.19  to the lesser of $75,000 or $10 per pupil unit per 
190.20  district $10,000 per district or $5,000 per school site. 
190.21     Subd. 3.  [REVENUE MANAGEMENT.] The use of the state and 
190.22  private funds provided under this section is under the general 
190.23  control of the board.  The board may establish, without using 
190.24  state funds or public employees, a separate foundation to 
190.25  directly manage the funds.  The private funds must be used to 
190.26  acquire instructional or noninstructional academic materials of 
190.27  a capital nature including, but not limited to, textbooks, 
190.28  globes, maps, and other academic material to support student 
190.29  learning.  The funds shall not be used for salaries or other 
190.30  employee benefits. 
190.31     Subd. 4.  [PROCEDURES; REPORT.] The Minnesota academic 
190.32  excellence foundation, under the direction of the commissioner 
190.33  must establish application forms, guidelines, procedures, and 
190.34  timelines for the distribution of state aid a grant.  The 
190.35  commissioner may require reporting necessary to evaluate the 
190.36  program.  Measures of success will include numbers of 
191.1   partnerships and funds raised; numbers of school foundations 
191.2   formed; numbers of volunteers engaged; increased numbers of 
191.3   students participating in academic league activities under 
191.4   section 124D.94, subdivision 4; and demonstrated linkages of 
191.5   partnerships to improved instructional delivery resulting in 
191.6   increased student learning. 
191.7      Subd. 5.  [RESULTS-ORIENTED CHARTER SCHOOLS.] 
191.8   Notwithstanding section 124D.11, subdivision 6, paragraph (b), a 
191.9   results-oriented charter school is eligible to participate in 
191.10  the program under this section as if it were a district. 
191.11     Sec. 13.  Minnesota Statutes 1998, section 125B.05, 
191.12  subdivision 3, is amended to read: 
191.13     Subd. 3.  [SOFTWARE DEVELOPMENT.] The commissioner may 
191.14  charge school districts or cooperative units for the actual cost 
191.15  of software development used by the district or cooperative 
191.16  unit.  Any amount received is annually appropriated to the 
191.17  department of children, families, and learning for this 
191.18  purpose.  A school district, charter school, or cooperative unit 
191.19  may not implement a payroll financial, student, or staff 
191.20  software system after June 30, 1994, until the system has been 
191.21  reviewed by the department to ensure that it provides the 
191.22  required data elements and format. 
191.23     Sec. 14.  Minnesota Statutes 1998, section 272.02, 
191.24  subdivision 8, is amended to read: 
191.25     Subd. 8.  [PROPERTY LEASED TO SCHOOL DISTRICTS AND CHARTER 
191.26  SCHOOLS.] Property that is leased or rented to a school district 
191.27  or a charter school is exempt from taxation if it meets the 
191.28  following requirements: 
191.29     (1) the lease must be for a period of at least 12 
191.30  consecutive months; 
191.31     (2) the terms of the lease must require the school district 
191.32  or charter school to pay a nominal consideration for use of the 
191.33  building; 
191.34     (3) the school district or charter school must use the 
191.35  property to provide direct instruction in any grade from 
191.36  kindergarten through grade 12; special education for handicapped 
192.1   children; adult basic education as described in section 124D.52; 
192.2   preschool and early childhood family education; or community 
192.3   education programs, including provision of administrative 
192.4   services directly related to the educational program at that 
192.5   site; and 
192.6      (4) the lease must provide that the school district or 
192.7   charter school has the exclusive use of the property during the 
192.8   lease period. 
192.9      Sec. 15.  Laws 1997, First Special Session chapter 4, 
192.10  article 9, section 6, is amended to read:  
192.11     Sec. 6.  [LEARNING ACADEMY.] 
192.12     Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
192.13  develop standards and requirements and certify courses for a 
192.14  Minnesota learning academy to provide training opportunities for 
192.15  educators, administrators, school media and information 
192.16  technology professionals, and librarians in the use of 
192.17  technology and its integration into learning activities for 
192.18  meeting the educational needs of all students.  Only certified 
192.19  classes may be used to fulfill the requirements of the learning 
192.20  academy. 
192.21     Subd. 2.  [DEVELOPMENT OF THE LEARNING ACADEMY.] To develop 
192.22  the learning academy, the commissioner shall consult with 
192.23  representatives of public schools, higher education, teacher 
192.24  organizations, students, private business, state agencies, 
192.25  libraries, and political subdivisions to do the following: 
192.26     (1) set measures for teacher training opportunities on 
192.27  technical skills and technology integration skills; 
192.28     (2) identify and establish outcomes for a series of 
192.29  training courses that provide for technical skills and 
192.30  technology classroom integration skills, including skills to 
192.31  enable school media and information specialists to train school 
192.32  staff; 
192.33     (3) identify existing education organizations, public, or 
192.34  private institutions to develop and provide training courses; 
192.35     (4) evaluate prerequisites for the classroom integration 
192.36  skills course; 
193.1      (5) certify or decertify classes and courses for inclusion 
193.2   in or exclusion from the learning academy; and 
193.3      (6) coordinate and make certified classes and courses 
193.4   available to eligible participants. 
193.5      Subd. 3.  [FUNDING.] The commissioner shall use available 
193.6   appropriations to provide start-up and initial operating 
193.7   subsidies for the learning academy sites.  Appropriated funds 
193.8   may also be used to partially subsidize costs of attendees of 
193.9   the academy. 
193.10     Sec. 16.  [BRAIN POWER:  BIRTH TO CLASSROOM SYSTEM 
193.11  ALIGNMENT PILOT.] 
193.12     Subdivision 1.  [GOALS.] The goals of the brain power:  
193.13  birth to classroom system alignment pilot are to: 
193.14     (1) improve academic and social outcomes for young children 
193.15  ages birth to eight so that they will be prepared to reach their 
193.16  highest academic potential; 
193.17     (2) create equity in opportunity in education by the third 
193.18  grade; 
193.19     (3) encourage the use of different and innovative teaching 
193.20  methods designed to maximize learning and based on academic 
193.21  research involving brain formation and development; and 
193.22     (4) provide for measurable learning achievement. 
193.23     Subd. 2.  [GRANT APPLICATION.] Early childhood care and 
193.24  education service providers serving children ages birth to eight 
193.25  may apply to the commissioner of children, families, and 
193.26  learning for brain power:  birth to classroom funds in addition 
193.27  to funding sources which the applicant may be entitled to access 
193.28  under existing law.  Applicants must submit an application to 
193.29  the commissioner in the form prescribed by the commissioner.  
193.30  The application must include a detailed description of the 
193.31  program including:  
193.32     (1) a defined service delivery area and the number of 
193.33  children to be served; 
193.34     (2) how the pilot will be structured to reflect the 
193.35  characteristics of the children, their families, and the 
193.36  community involved in the program; 
194.1      (3) how the pilot will differ in context, scope, content, 
194.2   delivery, or other respects from early childhood care and 
194.3   education programming already available through existing state 
194.4   and local funding sources; 
194.5      (4) how the pilot will integrate professional development 
194.6   for staff; and 
194.7      (5) what streams of funding the pilot will integrate. 
194.8      Subd. 3.  [ELIGIBILITY.] Applicants must meet the following 
194.9   eligibility criteria:  
194.10     (1) applicants must at a minimum consist of a consortia of 
194.11  local representatives from the following service delivery 
194.12  systems:  Head Start; early childhood and family education; 
194.13  learning readiness; the child care community, including 
194.14  school-age child care; the local schools; public health; and the 
194.15  county; 
194.16     (2) pilots must operate according to a plan approved by the 
194.17  commissioner; 
194.18     (3) applicants must agree to utilize, within their first 
194.19  year of operation, the work sampling system of child assessment 
194.20  and use the early benchmark at age 3-1/2 years as required by 
194.21  the commissioner; and 
194.22     (4) applicants will be expected to determine indicators and 
194.23  demonstrate strategies to achieve a common set of outcomes and 
194.24  document processes used to achieve improved outcomes for 
194.25  children. 
194.26     Sec. 17.  [STABILITY DEMONSTRATION PROJECT.] 
194.27     A demonstration project involving high mobility schools is 
194.28  established in independent school district No. 625, St. Paul, to 
194.29  improve student achievement and to provide a model to other 
194.30  districts with high mobility schools.  Notwithstanding Minnesota 
194.31  Statutes, sections 123B.84 to 123B.86, the district may provide 
194.32  transportation to students living within the stability zone 
194.33  designated by the district to maintain attendance at the same 
194.34  school without providing similar transportation to other 
194.35  students.  The district must match $1 of district money for each 
194.36  $2 of grant money received. 
195.1      Sec. 18.  [BASIC SKILLS INTERVENTION; EXTENDED 
195.2   INSTRUCTION.] 
195.3      Subdivision 1.  [GRANTS.] The commissioner of children, 
195.4   families, and learning shall administer grants for fiscal year 
195.5   2000 for grants to school sites that offer a basic skills 
195.6   intervention program outside of the regular school day, 
195.7   including Saturdays.  The site shall provide intensive tutoring 
195.8   to students who have not yet passed the basic skills tests in 
195.9   math or reading.  Sites may also offer a program to students 
195.10  who, based on the statewide assessments in grades 3 and 5, are 
195.11  at risk of failing the basic skills examinations. 
195.12     Subd. 2.  [APPLICATION PROCESS.] To obtain a grant, a 
195.13  school site must submit an application to the commissioner in 
195.14  the form and manner established by the commissioner.  The 
195.15  application must describe how the applicant will provide the 
195.16  services described in subdivision 1. 
195.17     Subd. 3.  [GRANT AWARDS.] The commissioner may award grants 
195.18  to school sites who meet the requirements of this section.  The 
195.19  commissioner must base the amount of the grant on the number of 
195.20  children expected to participate in the program. 
195.21     Sec. 19.  [CLASS SIZE STUDY.] 
195.22     The class size study at independent school district No. 12, 
195.23  Centennial, shall continue for fiscal years 2000 and 2001.  The 
195.24  study shall focus on whether or not small class sizes would 
195.25  result in statistically significant gains in student achievement 
195.26  as defined by the state graduation standards, reductions of 
195.27  special education referrals, and reductions in negative behavior 
195.28  incidents.  The study shall also monitor parent, teacher, and 
195.29  student attitudes about lower class sizes.  The study shall 
195.30  compare a reduced class size group to a control group class with 
195.31  a larger student to teacher ratio.  The Centennial school 
195.32  district shall report to the commissioner of children, families, 
195.33  and learning, and to the education committees of the legislature 
195.34  by February 1, 2001, on the results of the class size study. 
195.35     Sec. 20.  [HEALTH PLAN STUDY.] 
195.36     The education organizations that participate in the 
196.1   development of a report on costs of health insurance for 
196.2   kindergarten through grade 12 educators shall report its 
196.3   findings to the legislative committees of the legislature by 
196.4   February 15, 2000. 
196.5      Sec. 21.  [APPROPRIATIONS.] 
196.6      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
196.7   LEARNING.] The sums indicated in this section are appropriated 
196.8   from the general fund to the department of children, families, 
196.9   and learning for the fiscal years designated. 
196.10     Subd. 2.  [STATEWIDE TESTING.] For supporting 
196.11  implementation of the graduation standards: 
196.12       $9,000,000    .....     2000 
196.13       $9,000,000    .....     2001 
196.14     Any balance in the first year does not cancel but is 
196.15  available in the second year. 
196.16     Subd. 3.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
196.17  lease aid according to Minnesota Statutes, section 124D.11, 
196.18  subdivision 4: 
196.19       $2,510,000     .....     2000 
196.20       $3,004,000     .....     2001 
196.21     The 2000 appropriation includes $194,000 for 1999 and 
196.22  $2,316,000 for 2000. 
196.23     The 2001 appropriation includes $273,000 for 2000 and 
196.24  $2,731,000 for 2001.  
196.25     Subd. 4.  [CHARTER SCHOOL START-UP GRANTS.] For charter 
196.26  school start-up cost aid under Minnesota Statutes, section 
196.27  124D.11: 
196.28       $1,689,000     .....     2000 
196.29       $1,776,000     .....     2001 
196.30     The 2000 appropriation includes $100,000 for 1999 and 
196.31  $1,589,000 for 2000.  
196.32     The 2001 appropriation includes $188,000 for 1999 and 
196.33  $1,588,000 for 2001. 
196.34     Any balance in the first year does not cancel but is 
196.35  available in the second year.  This appropriation may also be 
196.36  used for grants to convert existing schools into charter schools.
197.1      Subd. 5.  [ST. PAUL COMMUNITY-BASED SCHOOL PROGRAM.] For a 
197.2   grant to independent school district No. 625, St. Paul, for the 
197.3   operation of a community-based school program.  The school 
197.4   district must report to the legislature on the academic and 
197.5   social results of this program by January 15, 2000. 
197.6        $3,000,000     .....     2000 
197.7      Any balance in the first year does not cancel but is 
197.8   available in the second year.  This is a one-time appropriation. 
197.9      Subd. 6.  [GRADUATION RULE RESOURCE GRANTS.] For graduation 
197.10  rule resource grants according to Laws 1998, chapter 398, 
197.11  article 5, section 40: 
197.12       $6,850,000     .....     2000 
197.13     This appropriation is available until June 30, 2001. 
197.14     Of this amount, $400,000 is for a planning grant to 
197.15  independent school district No. 112, Chaska, for a project 
197.16  involving the Minnesota Arboretum; $100,000 is for the city of 
197.17  St. Paul, including the Como Park Zoo; $500,000 is for a current 
197.18  recipient of funding from the National Geographic Society 
197.19  Education Foundation; $130,000 is for a program offering horse 
197.20  riding as an alternative educational program for children with a 
197.21  disability; $100,000 is for a Young Inventors Program; $850,000 
197.22  is for neighborhood-based programs combining the arts and 
197.23  physical education; $100,000 is for programs developing an 
197.24  integrated model of technology and environmental learning; 
197.25  $250,000 is for programs for violence prevention through the 
197.26  arts; $180,000 is for Murphy's Landing; $1,000,000 is for an 
197.27  arts via the Internet collaborative project between the Walker 
197.28  Art Center and the Minneapolis Institute of Arts; and $500,000 
197.29  is for special education graduation rule development. 
197.30     Subd. 7.  [TALENTED STUDENT PROGRAMS.] For grants to 
197.31  talented students programs: 
197.32       $2,375,000   .....     2000 
197.33       $1,375,000   .....     2001 
197.34     Notwithstanding Minnesota Statutes, section 120B.13, 
197.35  subdivision 3, in each year to the extent of available 
197.36  appropriations, the commissioner shall pay all examination fees 
198.1   for all students sitting for an advanced placement examination, 
198.2   international baccalaureate examination, or both.  If this 
198.3   amount is not adequate, the commissioner may pay less than the 
198.4   full examination fee. 
198.5      $1,375,000 each year is for student scholarships.  A 
198.6   student scholarship shall be awarded to a student for each score 
198.7   of three or better on any advanced placement examination and for 
198.8   each score of four or better on any international baccalaureate 
198.9   examination.  The amount of each scholarship shall range from 
198.10  $150 to $500 based on the student's score on the exams.  The 
198.11  scholarships shall be awarded only to students who are enrolled 
198.12  in a Minnesota public or private college or university.  The 
198.13  total amount of each scholarship shall be paid directly to the 
198.14  student's designated college or university and must be used by 
198.15  the student only for tuition, required fees, and books in 
198.16  nonsectarian courses or programs.  The higher education services 
198.17  office, in consultation with the commissioner, shall determine 
198.18  the payment process, the amount of the scholarships, and 
198.19  provisions for unused scholarships.  
198.20     In order to be eligible to receive advanced placement or 
198.21  international baccalaureate scholarships on behalf of the 
198.22  qualifying students, the college or university must have an 
198.23  advanced placement, international baccalaureate, or both, credit 
198.24  and placement policy for the scholarship recipients.  In 
198.25  addition, each college or university must certify these policies 
198.26  to the department each year.  The department must provide each 
198.27  secondary school in the state with a copy of the post-secondary 
198.28  advanced placement and international baccalaureate policies each 
198.29  year. 
198.30     $500,000 in fiscal year 2000 is for a grant to the South 
198.31  Central Service Cooperative for the Minnesota talented youth 
198.32  math project operated by the South Central Service Cooperative 
198.33  and as fiscal agent for the talented youth math programs 
198.34  established and operated by the Northwest Service Cooperative, 
198.35  Northeast Service Cooperative, North Central Service 
198.36  Cooperative, and Southwest/Central Service Cooperative. 
199.1      $500,000 in fiscal year 2000 is for grants to provide 
199.2   gifted and talented students with access to appropriate 
199.3   programs, consistent with the requirements under Laws 1997, 
199.4   First Special Session chapter 4, article 5, section 24. 
199.5      Any balance in the first year does not cancel but is 
199.6   available in the second year. 
199.7      Subd. 8.  [CLEARINGHOUSE OF BEST EDUCATIONAL 
199.8   PRACTICES.] For the clearinghouse of best educational practices 
199.9   under Laws 1998, chapter 398, article 5, section 42: 
199.10       $13,668,000     .....     2000
199.11     This appropriation is available until June 30, 2001. 
199.12     Of this amount, $5,000,000 is for a grant to education 
199.13  Minnesota to provide three-day best practices seminars during 
199.14  the summer of 1999.  The seminars shall provide intensive 
199.15  professional development for public school teachers on best 
199.16  practices and implementing the profile of learning. 
199.17     Of this amount, $1,000,000 is for professional development 
199.18  grants for programs that utilize best practices in reading and 
199.19  $1,200,000 is for Hamline University's center for excellence in 
199.20  urban teaching. 
199.21     Of this amount, $500,000 is for the Richard Greene 
199.22  Institute; $500,000 is for matching funds to make the 
199.23  African-American Encyclopedia created by Harvard University 
199.24  available in Minnesota schools; $500,000 is for the school and 
199.25  community enrichment partnership program according to Minnesota 
199.26  Statutes, section 124D.90; $700,000 is for a grant to Shared 
199.27  Decisions Minnesota for school restructuring; $500,000 is for 
199.28  the Minnesota association of alternative programs; $240,000 is 
199.29  for the Minnesota International Center; $500,000 is for the 
199.30  Minnesota Children's Museum reading program; $500,000 is for A 
199.31  Chance To Grow/New Visions for the Minnesota Learning Resource 
199.32  Center; and $2,000,000 is for programs training teachers of 
199.33  special needs children. 
199.34     The following programs must be considered to receive grant 
199.35  money from the clearinghouse of best educational practices to 
199.36  further professional development opportunities for teachers:  
200.1   programs for technology training; programs implementing best 
200.2   practices for English language learners; programs training 
200.3   teachers to teach reading; training for violence prevention 
200.4   curriculum; training for the use of appropriate positive 
200.5   behavioral interventions; programs training teachers to improve 
200.6   the academic performance of at-risk children; programs that 
200.7   offer staff development for teachers of adult learners; school 
200.8   districts that offer teachers extended contracts for additional 
200.9   contact days and staff development days; statewide model 
200.10  projects using multipurpose Asian media programming, 
200.11  multicultural educational applications, or emerging technology; 
200.12  and training and workshops approved by the advanced placement or 
200.13  international baccalaureate programs. 
200.14     Subd. 9.  [STUDENT COUNCIL NATIONAL CONVENTION.] For a 
200.15  grant to independent school district No. 623, Roseville, for 
200.16  transportation costs for the National Association of Student 
200.17  Councils' 1999 National Convention to be held June 26 through 
200.18  June 30, 1999, at the Roseville Area High School: 
200.19       $50,000        .....     1999 
200.20     Subd. 10.  [AREA LEARNING CENTER BUILDING LEASE AID.] For 
200.21  area learning center building lease aid according to Minnesota 
200.22  Statutes, section 123A.05, subdivision 5: 
200.23       $2,250,000     .....     2000 
200.24       $2,500,000     .....     2001 
200.25     Subd. 11.  [PROPERTY LEASED TO SCHOOL DISTRICTS AND CHARTER 
200.26  SCHOOLS.] For property leased charter schools according to 
200.27  Minnesota Statutes, section 272.02, subdivision 8: 
200.28       $100,000       .....     2000 
200.29       $100,000       .....     2001 
200.30     Subd. 12.  [CHARTER SCHOOL INTEGRATION AID.] For new 
200.31  integration aid to go to charter schools according to Minnesota 
200.32  Statutes, section 124D.11, subdivision 6, paragraph (e): 
200.33       $50,000        .....     2000 
200.34       $50,000        .....     2001 
200.35     Any balance in the first year does not cancel but is 
200.36  available in the second year. 
201.1      Subd. 13.  [COMPENSATORY GROWTH COSTS.] For compensatory 
201.2   growth costs according to Minnesota Statutes, section 124D.11, 
201.3   subdivision 10: 
201.4        $100,000       .....     2000 
201.5        $100,000       .....     2001
201.6      Any balance in the first year does not cancel but is 
201.7   available in the second year. 
201.8      Subd. 14.  [BRAIN POWER:  BIRTH TO CLASSROOM.] For the 
201.9   purposes of the brain power:  birth to classroom system 
201.10  alignment project: 
201.11       $3,000,000     .....     2000 
201.12     This appropriation is available until June 30, 2001. 
201.13     Subd. 15.  [STABILITY DEMONSTRATION PROJECT.] For a 
201.14  stability demonstration project in independent school district 
201.15  No. 625, St. Paul: 
201.16       $568,000     .....     2000 
201.17     This appropriation is available until June 30, 2001.  
201.18     Subd. 16.  [BASIC SKILLS INTERVENTION; EXTENDED 
201.19  INSTRUCTION.] For basic skills intervention programs outside of 
201.20  the regular school day: 
201.21       $500,000       .....     2000 
201.22     This appropriation is available until June 30, 2001. 
201.23     Subd. 17.  [CLASS SIZE STUDY.] For a grant to independent 
201.24  school district No. 12, Centennial, for a class size study: 
201.25       $205,000     .....     2000
201.26       $218,000     .....     2001
201.27     Any balance remaining the first year does not cancel but is 
201.28  available in the second year. 
201.29     Subd. 18.  [HOMEWORK HOTLINE.] For grants for homework 
201.30  hotline providers: 
201.31       $100,000       .....     2000 
201.32       $100,000       .....     2001 
201.33     This appropriation is available to assist students with 
201.34  homework by telephone or other interactive technology.  The 
201.35  program providers must offer assistance to students at least 
201.36  four days per week.  The state aid is contingent upon the 
202.1   program matching each $1 of state revenue with $2 of local or 
202.2   private funding or in-kind contributions. 
202.3      $40,000 each year is for a "save a friend" youth crisis 
202.4   hotline.  Local or private matching funds are not required for 
202.5   this program. 
202.6      <i>(Effective date:  Section 21, subdivision 9,</i> 
202.7   <i>(Appropriations; Convention) is effective the day following</i> 
202.8   <i>final enactment.)</i> 
202.9      Sec. 22.  [EFFECTIVE DATES.] 
202.10     When preparing the prekindergarten through grade 12 
202.11  education conference committee report for adoption by the 
202.12  legislature, the revisor shall combine all effective date 
202.13  notations in this article into this effective dates section. 
202.14                             ARTICLE 6 
202.15                           OTHER PROGRAMS 
202.16     Section 1.  Minnesota Statutes 1998, section 120A.24, 
202.17  subdivision 1, is amended to read: 
202.18     Subdivision 1.  [REPORTS TO SUPERINTENDENT.] The person in 
202.19  charge of providing instruction to a child must submit the 
202.20  following information to the superintendent of the district in 
202.21  which the child resides: 
202.22     (1) by October 1 of each school year, the name, age birth 
202.23  date, and address of each child receiving instruction; 
202.24     (2) the name of each instructor and evidence of compliance 
202.25  with one of the requirements specified in section 120A.22, 
202.26  subdivision 10; 
202.27     (3) an annual instructional calendar; and 
202.28     (4) for each child instructed by a parent who meets only 
202.29  the requirement of section 120A.22, subdivision 10, clause (6), 
202.30  a quarterly report card on the achievement of the child in each 
202.31  subject area required in section 120A.22, subdivision 9. 
202.32     Sec. 2.  Minnesota Statutes 1998, section 123A.48, 
202.33  subdivision 10, is amended to read: 
202.34     Subd. 10.  [DISTRICT BOARD ADOPTION OF PROPOSED PLAT.] The 
202.35  board of any independent district maintaining a secondary 
202.36  school, the board of any common district maintaining a secondary 
203.1   school, all or part of whose land is included in the proposed 
203.2   new district, must, within 45 days of the approval of the plat 
203.3   by the commissioner, either adopt or reject the plan as proposed 
203.4   in the approved plat.  If the board of any such district 
203.5   entitled to act on the petition rejects the proposal, the 
203.6   proceedings are terminated and dismissed.  If any board fails to 
203.7   act on the plat within the time allowed, the proceedings are 
203.8   terminated.  If any school board is unable to obtain a majority 
203.9   of its members votes to accept or reject the plat and plan, a 
203.10  petition of residents of the district unable to obtain a 
203.11  majority of votes equal to 20 percent of the votes cast in the 
203.12  last school district general election in that district may be 
203.13  submitted to the county auditor requesting a public vote to 
203.14  accept or reject the plat and plan.  The vote shall be scheduled 
203.15  on the next available election date.  The county auditor shall 
203.16  notify the commissioner of the scheduled vote, conduct the 
203.17  election in the district, and certify the results of the 
203.18  election to the commissioner.  Other affected school boards that 
203.19  approve the plat and plan may chose to hold an election.  If 
203.20  elections are conducted in each affected school district, 
203.21  results shall be separate and a majority vote to approve the 
203.22  plat and plan must be reached in each of the affected 
203.23  districts.  If the plat and plan are rejected by the voters, a 
203.24  new plat and plan cannot be submitted, except by school board 
203.25  resolution in a district where the plat and plan were rejected, 
203.26  until January 1 of the year following the next school district 
203.27  general election.  
203.28     Sec. 3.  [123B.5751] [DEFINITIONS.] 
203.29     Subdivision 1.  [SCOPE.] For the purposes of this section 
203.30  and section 123B.5752, the terms defined in this section have 
203.31  the meanings given them. 
203.32     Subd. 2.  [PESTICIDE.] "Pesticide" means any substance or 
203.33  mixture of substances intended to prevent, destroy, repel, or 
203.34  mitigate a pest, and a substance or mixture of substances 
203.35  intended for use as a plant regulator, defoliant, or desiccant, 
203.36  except that pesticide does not include any disinfectant or 
204.1   sanitizer used for cleaning purposes which is a Toxicity 
204.2   Category III or IV Pesticide Product. 
204.3      Subd. 3.  [PEST.] "Pest" means an insect, rodent, nematode, 
204.4   fungus, weed, terrestrial or aquatic plant, animal life, virus, 
204.5   bacteria, or other organism designated by rule as a pest, except 
204.6   a virus, bacteria, or other microorganism on or in living humans 
204.7   or other living animals. 
204.8      Subd. 4.  [SCHOOL DISTRICT.] "School district" means a 
204.9   school district defined under section 120A.05, subdivision 8, 
204.10  and includes a charter school. 
204.11     Subd. 5.  [RESTRICTED USE PESTICIDE.] "Restricted use 
204.12  pesticide" means a pesticide formulation designated as a 
204.13  restricted use pesticide under FIFRA or by the commissioner of 
204.14  agriculture under chapter 18B. 
204.15     Subd. 6.  [TOXICITY CATEGORY I PESTICIDE 
204.16  PRODUCT.] "Toxicity Category I Pesticide Product" means any 
204.17  pesticide product that meets United States Environmental 
204.18  Protection Agency criteria for Toxicity Category I under Code of 
204.19  Federal Regulations, title 40, part 156, section 156.10. 
204.20     Subd. 7.  [TOXICITY CATEGORY II PESTICIDE 
204.21  PRODUCT.] "Toxicity Category II Pesticide Product" means any 
204.22  pesticide product that meets United States Environmental 
204.23  Protection Agency criteria for Toxicity Category II under Code 
204.24  of Federal Regulations, title 40, part 156, section 156.10.  
204.25     Subd. 8.  [TOXICITY CATEGORY III PESTICIDE 
204.26  PRODUCT.] "Toxicity Category III Pesticide Product" means any 
204.27  pesticide product that meets United States Environmental 
204.28  Protection Agency criteria for Toxicity Category III under Code 
204.29  of Federal Regulations, title 40, part 156, section 156.10.  
204.30     Subd. 9.  [TOXICITY CATEGORY IV PESTICIDE PRODUCT.] 
204.31  "Toxicity Category IV Pesticide Product" means any pesticide 
204.32  product that meets United States Environmental Protection Agency 
204.33  criteria for Toxicity Category IV under Code of Federal 
204.34  Regulations, title 40, part 156, section 156.10.  
204.35     <i>(Effective Date:  Section 3 (123B.5751) is effective July</i> 
204.36  <i>1, 2000.)</i> 
205.1      Sec. 4.  [123B.5752] [SCHOOL DISTRICT INTEGRATED PEST 
205.2   MANAGEMENT PLAN.] 
205.3      Subdivision 1.  [PESTICIDE APPLICATION NOTIFICATION.] A 
205.4   school district that plans to apply a pesticide which is a 
205.5   Toxicity Category I, II, or III Pesticide Product or a 
205.6   restricted use pesticide must provide a notice to parents and 
205.7   employees that it is applying such pesticides. 
205.8      Subd. 2.  [NOTICE AVAILABILITY.] The notice must be 
205.9   provided at least annually to the parent or guardian of each 
205.10  student and to each employee.  The notice may be included in any 
205.11  other notice that is provided to a parent or guardian or 
205.12  employee. 
205.13     Subd. 3.  [PLAN.] If a school board adopts a pest 
205.14  management plan, the plan must include the following: 
205.15     (1) identifying pests which need to be controlled; 
205.16     (2) establishing tolerable limits of each identified pest; 
205.17     (3) designing future buildings and landscapes to prevent 
205.18  identified pests; 
205.19     (4) excluding identified pests from sites and buildings 
205.20  using maintenance practices; 
205.21     (5) adapting cleaning activities and best management 
205.22  practices to minimize the number of pests; 
205.23     (6) using mechanical methods of controlling identified 
205.24  pests; and 
205.25     (7) controlling identified pests using the least toxic 
205.26  pesticides with the least exposure to persons as is practicable. 
205.27     <i>(Effective Date:  Section 4 (123B.5752) is effective July</i> 
205.28  <i>1, 2000.)</i> 
205.29     Sec. 5.  [124D.1155] [FAST BREAK TO LEARNING REVENUE.] 
205.30     Subdivision 1.  [APPLICATION PROCESS.] To receive revenue 
205.31  for providing breakfasts to all children, a public elementary 
205.32  school that participates in the federal school breakfast and 
205.33  lunch programs must submit an application to the commissioner in 
205.34  the form and manner the commissioner prescribes.  The 
205.35  application must describe how the applicant will encourage all 
205.36  children in the school to participate in the breakfast program.  
206.1   The applicant must also demonstrate to the commissioner that the 
206.2   applicant will collect a $1 local match of funding for every $3 
206.3   of state funding the applicant receives.  The applicant must 
206.4   raise the local match either by charging student households not 
206.5   eligible for federal free or reduced price meals or by 
206.6   soliciting funds or in-kind contributions from nonpublic 
206.7   sources.  The applicant can determine the method for charging 
206.8   student households for school breakfast however it must include 
206.9   a consideration of the household's ability to pay.  The 
206.10  applicant cannot collect local funds from student households for 
206.11  school breakfast that exceeds the difference between the revenue 
206.12  from federal and state aids and the actual cost of providing the 
206.13  breakfast.  The commissioner may require additional information 
206.14  from the applicant. 
206.15     Subd. 2.  [REVENUE AMOUNT.] School sites that received 
206.16  grants under Laws 1997, First Special Session chapter 4, article 
206.17  6, section 19, are eligible for revenue under this section and 
206.18  shall receive grants.  For fiscal year 2000 and later, the 
206.19  commissioner shall determine the revenue amount for school sites 
206.20  according to need as determined by the percentage of students 
206.21  enrolled in the school who are eligible for federal free or 
206.22  reduced price meals and that meet the requirements of this 
206.23  section until funding under this section is expended.  The 
206.24  commissioner shall determine the amount of the revenue using 
206.25  average statewide statistics and individual school statistics 
206.26  adjusted for other state and federal reimbursements.  Revenue 
206.27  recipients must use the proceeds to provide breakfast to school 
206.28  children every day school is in session. 
206.29     Sec. 6.  Minnesota Statutes 1998, section 126C.46, is 
206.30  amended to read: 
206.31     126C.46 [ABATEMENT LEVY.] 
206.32     (a) Each year, a school district may levy an amount to 
206.33  replace the net revenue lost to abatements that have occurred 
206.34  under chapter 278, section 270.07, 375.192, or otherwise.  The 
206.35  maximum abatement levy is the sum of: 
206.36     (1) the amount of the net revenue loss determined under 
207.1   section 127A.49, subdivision 2, that is not paid in state aid 
207.2   including any aid amounts not paid due to proration; 
207.3      (2) the difference of (i) the amount of any abatements that 
207.4   have been reported by the county auditor for the first six 
207.5   months of the calendar year during which the abatement levy is 
207.6   certified that the district chooses to levy, (ii) less any 
207.7   amount actually levied under this clause that was certified in 
207.8   the previous calendar year for the first six months of the 
207.9   previous calendar year; and 
207.10     (3) an amount equal to any interest paid on abatement 
207.11  refunds.  
207.12     (b) A district may spread this levy over a period not to 
207.13  exceed three two years.  With the approval of the commissioner, 
207.14  a district may spread this levy over a period not to exceed 
207.15  three years. 
207.16     By July 15, the county auditor shall separately report the 
207.17  abatements that have occurred during the first six calendar 
207.18  months of that year to the commissioner and each district 
207.19  located within the county. 
207.20     Sec. 7.  [LEVY AUTHORITY; CONTINUATION.] 
207.21     Subdivision 1.  [EXTENSION OF AUTHORITY.] The levy 
207.22  authority granted under Laws 1992, chapter 499, article 6, 
207.23  section 35, to the Lac qui Parle joint powers district is 
207.24  extended to independent school district No. 2853, Lac qui Parle 
207.25  Valley. 
207.26     Subd. 2.  [LEVY AUTHORITY.] For taxes payable in 2000 to 
207.27  2004, independent school district No. 2853, Lac qui Parle 
207.28  Valley, may levy an amount not to exceed $80,000 for costs 
207.29  associated with operating the cooperative secondary high school. 
207.30     (<i>Effective Date:  Section 7 (levy authority) is effective</i> 
207.31  <i>for taxes payable in 2000.</i>) 
207.32     Sec. 8.  [APPROPRIATIONS.] 
207.33     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
207.34  LEARNING.] The sums indicated in this section are appropriated 
207.35  from the general fund to the department of children, families, 
207.36  and learning for the fiscal years designated.  
208.1      Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
208.2   Minnesota Statutes, section 127A.49:  
208.3         $9,110,000    .....     2000 
208.4         $8,947,000    .....     2001 
208.5      The 2000 appropriation includes $1,352,000 for 1999 and 
208.6   $7,758,000 for 2000.  
208.7      The 2001 appropriation includes $861,000 for 2000 and 
208.8   $8,086,000 for 2001.  
208.9      Subd. 3.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
208.10  education aid according to Minnesota Statutes, sections 123B.40 
208.11  to 123B.48 and 123B.87: 
208.12       $10,996,000    .....      2000 
208.13       $11,878,000    .....      2001 
208.14     The 2000 appropriation includes $970,000 for 1999 and 
208.15  $10,026,000 for 2000. 
208.16     The 2001 appropriation includes $1,114,000 for 2000 and 
208.17  $10,764,000 for 2001.  
208.18     The department shall recompute the maximum allotments 
208.19  established on March 1, 1999, for fiscal year 2000 under 
208.20  Minnesota Statutes, sections 123B.42, subdivision 3, and 
208.21  123B.44, subdivision 6, to reflect the amount appropriated in 
208.22  this subdivision for fiscal year 2000. 
208.23     Subd. 4.  [CONSOLIDATION TRANSITION AID.] For districts 
208.24  consolidating under Minnesota Statutes, section 123A.485: 
208.25       $451,000       .....     2000
208.26       $375,000       .....     2001
208.27     The 2000 appropriation includes $113,000 for 1999 and 
208.28  $338,000 for 2000. 
208.29     The 2001 appropriation includes $37,000 for 2000 and 
208.30  $338,000 for 2001. 
208.31     Any balance in the first year does not cancel but is 
208.32  available in the second year. 
208.33     Subd. 5.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
208.34  pupil transportation aid under Minnesota Statutes, section 
208.35  123B.92, subdivision 9: 
208.36       $18,552,000    .....     2000 
209.1        $20,880,000    .....     2001 
209.2      The 2000 appropriation includes $1,848,000 for 2000 and 
209.3   $16,674,000 for 2001. 
209.4      The 2001 appropriation includes $1,852,000 for 2000 and 
209.5   $19,028,000 for 2001. 
209.6      Subd. 6.  [SCHOOL LUNCH.] (a) For school lunch aid 
209.7   according to Minnesota Statutes, section 124D.111, and Code of 
209.8   Federal Regulations, title 7, section 210.17, and for school 
209.9   milk aid according to Minnesota Statutes, section 124D.118:  
209.10       $7,770,000     .....     2000 
209.11       $7,770,000     .....     2001 
209.12     (b) Any unexpended balance remaining from the 
209.13  appropriations in this subdivision shall be prorated among 
209.14  participating schools based on the number of free, reduced, and 
209.15  fully paid federally reimbursable student lunches served during 
209.16  that school year.  
209.17     (c) If the appropriation amount attributable to either year 
209.18  is insufficient, the rate of payment for each fully paid student 
209.19  lunch shall be reduced and the aid for that year shall be 
209.20  prorated among participating schools so as not to exceed the 
209.21  total authorized appropriation for that year.  
209.22     (d) Not more than $800,000 of the amount appropriated each 
209.23  year may be used for school milk aid. 
209.24     Subd. 7.  [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer 
209.25  food service replacement aid under Minnesota Statutes, section 
209.26  124D.119: 
209.27       $150,000       .....     2000 
209.28       $150,000       .....     2001 
209.29     Subd. 8.  [FAST BREAK TO LEARNING REVENUE.] For fast break 
209.30  to learning revenue under Minnesota Statutes, section 124D.1155: 
209.31       $15,000,000    .....     2000 
209.32       $15,000,000    .....     2001 
209.33     Any balance in the first year does not cancel but is 
209.34  available in the second year. 
209.35     Subd. 9.  [HIV EDUCATION TRAINING SITES.] For regional 
209.36  training sites for HIV education in schools established 
210.1   according to Laws 1997, First Special Session chapter 4, article 
210.2   6, section 18: 
210.3        $458,000     .....     2000
210.4      Of this amount, $150,000 must be used for continued 
210.5   development of the existing sites; $150,000 for adding two 
210.6   additional training sites; $75,000 for coordination, technical 
210.7   assistance, evaluation, and contract management services for the 
210.8   sites; and $50,000 for a report and recommendations on the 
210.9   effectiveness of HIV education in public schools according to 
210.10  Minnesota Statutes, section 121A.23. 
210.11     This appropriation is available until June 30, 2001. 
210.12     Subd. 10.  [TRANSPORTATION GRANTS.] For grants to school 
210.13  districts that use public transportation to transport secondary 
210.14  students to and from school: 
210.15       $200,000     .....     2000 
210.16     Districts receiving transportation grants must match $1 of 
210.17  district money for each $1 of grant money received. 
210.18     This appropriation is available until June 30, 2001. 
210.19     Subd. 11.  [SCHOOL BREAKFAST.] To operate the school 
210.20  breakfast program: 
210.21       $456,000     .....     2000 
210.22       $456,000     .....     2001 
210.23     Any balance in the first year does not cancel but is 
210.24  available in the second year. 
210.25     Subd. 12.  [MAGNET SCHOOL GRANTS.] (a) For magnet school 
210.26  grants: 
210.27       $2,350,000     .....     2000 
210.28     (b) Up to $250,000 of this amount may be used for planning 
210.29  a magnet school in the metropolitan area on land that is 
210.30  currently owned by the state or federal government.  Up to 
210.31  $250,000 of this appropriation is for planning grants for 
210.32  specialty high school programs.  Specialty high school programs 
210.33  may include a cooperative program with a higher education 
210.34  institution to provide either a grade 9 through 16 program or a 
210.35  grade 11 through 14 program. 
210.36     (c) Of this amount, $1,200,000 is for the discovery magnet 
211.1   school in independent school district No. 347, Willmar, for 
211.2   capital and operating costs of the magnet school serving 
211.3   children from birth through grade 4. 
211.4      (d) Of this amount, $350,000 is for a planning grant for an 
211.5   urban agricultural high school for curriculum, design, 
211.6   coordination with the state's graduation standards, demographic 
211.7   research, development of partnerships, site acquisition, market 
211.8   assessment of student interest, collaboration with the local 
211.9   municipality and school district on any proposed site prior to 
211.10  acquisition, and facility predesign purposes. 
211.11     (e) Of this amount, $300,000 is to independent school 
211.12  district No. 696, Ely, to determine the feasibility of 
211.13  establishing a joint secondary and higher education 
211.14  environmental studies magnet school. 
211.15     (f) This appropriation is available until June 30, 2001. 
211.16     Subd. 13.  [ONE ROOM SCHOOLHOUSE.] For a grant to 
211.17  independent school district No. 690, Warroad, to operate the 
211.18  Angle Inlet School: 
211.19       $25,000     .....     2000
211.20       $25,000     .....     2001
211.21     Subd. 14.  [INTEGRATED PEST MANAGEMENT TRAINING AND 
211.22  MANUAL.] For training and developing a how-to manual on 
211.23  integrated pest management in schools: 
211.24       $50,000     .....     2000
211.25     The Minnesota extension service must provide the department 
211.26  of children, families, and learning with appropriate information 
211.27  concerning integrated pest management in schools using resources 
211.28  already developed by other states or the federal government. 
211.29     This appropriation is available until June 30, 2001. 
211.30     Sec. 9.  [REPEALER.] 
211.31     Minnesota Statutes 1998, sections 124D.112; 124D.113; and 
211.32  124D.116, are repealed. 
211.33     Sec. 10.  [EFFECTIVE DATE.] 
211.34     When preparing the prekindergarten through grade 12 
211.35  education conference committee report for adoption by the 
211.36  legislature, the revisor shall combine all effective date 
212.1   notations in this article into this effective date section. 
212.2                              ARTICLE 7 
212.3                           EDUCATION POLICY 
212.4      Section 1.  Minnesota Statutes 1998, section 120A.40, is 
212.5   amended to read: 
212.6      120A.40 [SCHOOL CALENDAR.] 
212.7      (a) Except for learning programs during summer, flexible 
212.8   learning year programs authorized under sections 124D.12 to 
212.9   124D.127, and learning year programs under section 124D.128, a 
212.10  district must not commence an elementary or secondary school 
212.11  year prior to before September 1, except as provided under 
212.12  paragraph (b).  Days which are devoted to teachers' workshops 
212.13  may be held before September 1.  Districts that enter into 
212.14  cooperative agreements are encouraged to adopt similar school 
212.15  calendars.  
212.16     (b) A district may begin the school year on any day before 
212.17  September 1 to accommodate a construction or remodeling project 
212.18  of $400,000 or more affecting a district school facility. 
212.19     <i>(Effective Date:  Notwithstanding any law to the contrary,</i> 
212.20  <i>section 1 (120A.40) is effective for the 1999-2000 school year</i> 
212.21  <i>and thereafter.)</i> 
212.22     Sec. 2.  Minnesota Statutes 1998, section 120B.30, 
212.23  subdivision 1, is amended to read: 
212.24     Subdivision 1.  [STATEWIDE TESTING.] (a) The commissioner, 
212.25  with advice from experts with appropriate technical 
212.26  qualifications and experience and stakeholders, shall include in 
212.27  the comprehensive assessment system, for each grade level to be 
212.28  tested, a single statewide norm-referenced or 
212.29  criterion-referenced test, or a combination of a norm-referenced 
212.30  and a criterion-referenced test, which shall be highly 
212.31  correlated with the state's graduation standards and 
212.32  administered annually to all students in the third, fifth, and 
212.33  eighth grades.  The commissioner shall establish one or more 
212.34  months during which schools shall administer the tests to 
212.35  students each school year.  Only Minnesota basic skills tests in 
212.36  reading, mathematics, and writing shall fulfill students' 
213.1   testing requirements for a passing state notation.  
213.2      (b) In addition, at the secondary level, districts shall 
213.3   assess student performance in all required learning areas and 
213.4   selected required standards within each area of the profile of 
213.5   learning.  The testing instruments and testing process shall be 
213.6   determined by the commissioner.  The results shall be aggregated 
213.7   at the site and district level.  The testing shall be 
213.8   administered beginning in the 1999-2000 school year and 
213.9   thereafter. 
213.10     (c) The comprehensive assessment system shall include an 
213.11  evaluation of school site and school district performance levels 
213.12  during the 1997-1998 school year and thereafter using an 
213.13  established performance baseline developed from students' test 
213.14  scores under this section that records, at a minimum, students' 
213.15  unweighted mean test scores in each tested subject, a second 
213.16  performance baseline that reports, at a minimum, the same 
213.17  unweighted mean test scores of only those students enrolled in 
213.18  the school by January 1 of the previous school year, and a third 
213.19  performance baseline that reports the same unweighted test 
213.20  scores of all students except those students receiving limited 
213.21  English proficiency instruction.  The evaluation also shall 
213.22  record separately, in proximity to the performance baselines, 
213.23  the percentages of students who are eligible to receive a free 
213.24  or reduced price school meal, demonstrate limited English 
213.25  proficiency, or are eligible to receive special education 
213.26  services. 
213.27     (d) In addition to the testing and reporting requirements 
213.28  under paragraphs (a), (b), and (c), the commissioner, in 
213.29  consultation with the state board of education, shall include 
213.30  the following components in the statewide educational 
213.31  accountability and public reporting system: 
213.32     (1) uniform statewide testing of all third, fifth, eighth, 
213.33  and post-eighth grade students with exemptions, only with parent 
213.34  or guardian approval, from the testing requirement only for 
213.35  those very few students for whom the student's individual 
213.36  education plan team under sections 125A.05 and 125A.06, 
214.1   determines that the student is incapable of taking a statewide 
214.2   test, or a limited English proficiency student under section 
214.3   124D.59, subdivision 2, if the student has been in the United 
214.4   States for fewer than 12 months and for whom special language 
214.5   barriers exist, such as the student's native language does not 
214.6   have a written form or the district does not have access to 
214.7   appropriate interpreter services for the student's native 
214.8   language; 
214.9      (2) educational indicators that can be aggregated and 
214.10  compared across school districts and across time on a statewide 
214.11  basis; 
214.12     (3) students' scores on the American College Test; 
214.13     (4) participation in the National Assessment of Educational 
214.14  Progress so that the state can benchmark its performance against 
214.15  the nation and other states, and, where possible, against other 
214.16  countries, and contribute to the national effort to monitor 
214.17  achievement; and 
214.18     (5) basic skills and advanced competencies connecting 
214.19  teaching and learning to high academic standards, assessment, 
214.20  and transitions to citizenship and employment. 
214.21     (e) Districts must report exemptions under paragraph (d), 
214.22  clause (1), to the commissioner consistent with a format 
214.23  provided by the commissioner. 
214.24     <i>(Effective Date:  Section 2 (120B.30, subdivision 1) is</i> 
214.25  <i>effective December 31, 1999.)</i> 
214.26     Sec. 3.  Minnesota Statutes 1998, section 120B.35, is 
214.27  amended to read: 
214.28     120B.35 [STUDENT ACHIEVEMENT LEVELS.] 
214.29     (a) Each school year, a school district must determine if 
214.30  the student achievement levels at each school site meet state 
214.31  expectations.  If student achievement levels at a school site do 
214.32  not meet state expectations for two out of three consecutive 
214.33  school years, beginning with the 1999-2000 2000-2001 school 
214.34  year, the district must work with the school site to adopt a 
214.35  plan to raise student achievement levels to state expectations.  
214.36  The legislature will determine state expectations after 
215.1   receiving a recommendation from the commissioner of children, 
215.2   families, and learning.  The commissioner must submit its 
215.3   recommendations to the legislature by December 15, 1998 January 
215.4   15, 2000.  The recommended model must measure both yearly 
215.5   progress against an established baseline and also make 
215.6   comparisons to state expectations. 
215.7      (b) The department must assist the district and the school 
215.8   site in developing a plan to improve student achievement.  The 
215.9   plan must include parental involvement components. 
215.10     Sec. 4.  Minnesota Statutes 1998, section 121A.61, 
215.11  subdivision 1, is amended to read: 
215.12     Subdivision 1.  [REQUIRED POLICY.] Each school board must 
215.13  adopt a written districtwide school discipline policy which 
215.14  includes written rules of conduct for students, minimum 
215.15  consequences for violations of the rules, and grounds and 
215.16  procedures for removal of a student from class.  The policy must 
215.17  be developed in consultation with the participation of 
215.18  administrators, teachers, employees, pupils, parents, community 
215.19  members, law enforcement agencies, county attorney offices, 
215.20  social service agencies, and such other individuals or 
215.21  organizations as the board determines appropriate.  A school 
215.22  site council may adopt additional provisions to the policy 
215.23  subject to the approval of the school board. 
215.24     Sec. 5.  [121A.68] [CRISIS MANAGEMENT POLICY.] 
215.25     Subdivision 1.  [MODEL POLICY.] By September 1, 1999, the 
215.26  commissioner shall maintain and make available to school boards 
215.27  a model crisis management policy. 
215.28     Subd. 2.  [SCHOOL DISTRICT POLICY.] By January 15, 2000, a 
215.29  school board must adopt a district crisis management policy to 
215.30  address potential violent crisis situations in the district.  
215.31  The policy must be developed in consultation with 
215.32  administrators, teachers, employees, students, parents, 
215.33  community members, law enforcement agencies, county attorney 
215.34  offices, social service agencies, and any other appropriate 
215.35  individuals or organizations. 
215.36     Sec. 6.  Minnesota Statutes 1998, section 122A.09, 
216.1   subdivision 4, is amended to read: 
216.2      Subd. 4.  [LICENSE AND RULES.] (a) The board must adopt 
216.3   rules to license public school teachers and interns subject to 
216.4   chapter 14. 
216.5      (b) The board must adopt rules requiring a person to 
216.6   successfully complete a skills examination in reading, writing, 
216.7   and mathematics as a requirement for initial teacher licensure.  
216.8   Such rules must require college and universities offering a 
216.9   board approved teacher preparation program to provide remedial 
216.10  assistance to persons who did not achieve a qualifying score on 
216.11  the skills examination, including those for whom English is a 
216.12  second language. 
216.13     (c) The board must adopt rules to approve teacher 
216.14  preparation programs.  The board, upon the request of a teacher 
216.15  trainee seeking licensure or a licensed graduate of a teacher 
216.16  preparation program, and subject to chapter 14, must hold a 
216.17  hearing to resolve matters affecting the components of a teacher 
216.18  preparation program. 
216.19     (d) The board must provide the leadership and shall adopt 
216.20  rules for the redesign of teacher education programs to 
216.21  implement a research based, results-oriented curriculum that 
216.22  focuses on the skills teachers need in order to be effective.  
216.23  The board shall implement new systems of teacher preparation 
216.24  program evaluation to assure program effectiveness based on 
216.25  proficiency of graduates in demonstrating attainment of program 
216.26  outcomes. 
216.27     (e) The board must adopt rules requiring successful 
216.28  completion of an examination of general pedagogical knowledge 
216.29  and examinations of licensure-specific teaching skills.  The 
216.30  rules shall be effective on the dates determined by the board, 
216.31  but not later than July 1, 1999 September 1, 2001. 
216.32     (f) The board must adopt rules requiring teacher educators 
216.33  to work directly with elementary or secondary school teachers in 
216.34  elementary or secondary schools to obtain periodic exposure to 
216.35  the elementary or secondary teaching environment. 
216.36     (g) The board must grant licenses to interns and to 
217.1   candidates for initial licenses. 
217.2      (h) The board must design and implement an assessment 
217.3   system which requires a candidate for an initial license and 
217.4   first continuing license to demonstrate the abilities necessary 
217.5   to perform selected, representative teaching tasks at 
217.6   appropriate levels. 
217.7      (i) The board must receive recommendations from local 
217.8   committees as established by the board for the renewal of 
217.9   teaching licenses. 
217.10     (j) The board must grant life licenses to those who qualify 
217.11  according to requirements established by the board, and suspend 
217.12  or revoke licenses pursuant to sections 122A.20 and 214.10.  The 
217.13  board must not establish any expiration date for application for 
217.14  life licenses.  
217.15     (k) The board must adopt rules that require all licensed 
217.16  teachers who are renewing their continuing license to include in 
217.17  their renewal requirements further preparation in the areas of 
217.18  using positive behavior interventions and in accommodating, 
217.19  modifying, and adapting curricula, materials, and strategies to 
217.20  appropriately meet the needs of individual students and ensure 
217.21  adequate progress toward the state's graduation rule.  The rules 
217.22  adopted under this paragraph apply to teachers who renew their 
217.23  licenses in year 2001 and later. 
217.24     (l) In adopting rules to license public school teachers who 
217.25  provide health-related services for disabled children, the board 
217.26  shall adopt rules consistent with license or registration 
217.27  requirements of the commissioner of health and the 
217.28  health-related boards who license personnel who perform similar 
217.29  services outside of the school. 
217.30     <i>(Effective Date:  Section 6, paragraphs (c) and (e)</i> 
217.31  <i>(122A.09, subdivision 4), are effective the day following final</i> 
217.32  <i>enactment.)</i> 
217.33     Sec. 7.  Minnesota Statutes 1998, section 122A.18, is 
217.34  amended by adding a subdivision to read: 
217.35     Subd. 7a.  [PERMISSION TO SUBSTITUTE TEACH.] The board of 
217.36  teaching may allow a person who is enrolled in and making 
218.1   satisfactory progress in a board-approved teacher program and 
218.2   who has successfully completed student teaching to be employed 
218.3   as a short-call substitute teacher.  
218.4      Sec. 8.  Minnesota Statutes 1998, section 122A.18, is 
218.5   amended by adding a subdivision to read: 
218.6      Subd. 10.  [READING STRATEGIES.] All colleges and 
218.7   universities approved by the board of teaching to prepare 
218.8   persons for classroom teacher licensure must include in their 
218.9   teacher preparation programs reading best practices that enable 
218.10  classroom teacher licensure candidates to know how to teach 
218.11  reading, such as phonics or other research-based best practices. 
218.12     Sec. 9.  Minnesota Statutes 1998, section 122A.19, 
218.13  subdivision 4, is amended to read: 
218.14     Subd. 4.  [TEACHER PREPARATION PROGRAMS.] For the purpose 
218.15  of licensing bilingual and English as a second language 
218.16  teachers, the board may approve programs at colleges or 
218.17  universities designed for their training subject to the approval 
218.18  of the state board of education. 
218.19     <i>(Effective Date:  Section 9 (122A.19, subdivision 4) is</i> 
218.20  <i>effective December 31, 1999.)</i> 
218.21     Sec. 10.  Minnesota Statutes 1998, section 122A.20, 
218.22  subdivision 1, is amended to read: 
218.23     Subdivision 1.  [GROUNDS FOR REVOCATION, SUSPENSION, OR 
218.24  DENIAL.] The board of teaching or the state board of education, 
218.25  or the commissioner, with the advice from an advisory task force 
218.26  of supervisory personnel established under section 15.014, 
218.27  whichever has jurisdiction over a teacher's licensure, may, on 
218.28  the written complaint of the school board employing a teacher, a 
218.29  teacher organization, or any other interested person, refuse to 
218.30  issue, refuse to renew, suspend, or revoke a teacher's license 
218.31  to teach for any of the following causes: 
218.32     (1) Immoral character or conduct; 
218.33     (2) Failure, without justifiable cause, to teach for the 
218.34  term of the teacher's contract; 
218.35     (3) Gross inefficiency or willful neglect of duty; or 
218.36     (4) Failure to meet licensure requirements; or 
219.1      (5) Fraud or misrepresentation in obtaining a license. 
219.2      The written complaint must specify the nature and character 
219.3   of the charges.  For purposes of this subdivision, the board of 
219.4   teaching is delegated the authority to suspend or revoke 
219.5   coaching licenses under the jurisdiction of the state board of 
219.6   education. 
219.7      <i>(Effective Date:  Section 10 (122A.20, subdivision 1) is</i> 
219.8   <i>effective December 31, 1999.)</i> 
219.9      Sec. 11.  Minnesota Statutes 1998, section 122A.20, 
219.10  subdivision 2, is amended to read: 
219.11     Subd. 2.  [MANDATORY REPORTING.] A school board must report 
219.12  to the board of teaching, the state board of education, or the 
219.13  board of trustees of the Minnesota state colleges and 
219.14  universities, whichever has jurisdiction over the teacher's 
219.15  license, when its teacher is discharged or resigns from 
219.16  employment after a charge is filed with the school board under 
219.17  section 122A.41, subdivisions 6, clauses (1), (2), and (3), and 
219.18  7, or after charges are filed that are ground for discharge 
219.19  under section 122A.40, subdivision 13, clauses (a), (b), (c), 
219.20  (d), and (e), or when a teacher is suspended or resigns while an 
219.21  investigation is pending under section 122A.40, subdivision 13, 
219.22  clauses (a), (b), (c), (d), and (e); 122A.41, subdivisions 6, 
219.23  clauses (1), (2), and (3), and 7; or 626.556.  The report must 
219.24  be made to the appropriate licensing board within ten days after 
219.25  the discharge, suspension, or resignation has occurred.  The 
219.26  licensing board to which the report is made must investigate the 
219.27  report for violation of subdivision 1 and the reporting board 
219.28  must cooperate in the investigation.  Notwithstanding any 
219.29  provision in chapter 13 or any law to the contrary, upon written 
219.30  request from the licensing board having jurisdiction over the 
219.31  teacher's license, a board or school superintendent shall 
219.32  provide the licensing board with information about the teacher 
219.33  from the district's files, any termination or disciplinary 
219.34  proceeding, any settlement or compromise, or any investigative 
219.35  file.  Upon written request from the appropriate licensing 
219.36  board, a board or school superintendent may, at the discretion 
220.1   of the board or school superintendent, solicit the written 
220.2   consent of a student and the student's parent to provide the 
220.3   licensing board with information that may aid the licensing 
220.4   board in its investigation and license proceedings.  The 
220.5   licensing board's request need not identify a student or parent 
220.6   by name.  The consent of the student and the student's parent 
220.7   must meet the requirements of chapter 13 and Code of Federal 
220.8   Regulations, title 34, section 99.30.  The licensing board may 
220.9   provide a consent form to the district.  Any data transmitted to 
220.10  any board under this section is private data under section 
220.11  13.02, subdivision 12, notwithstanding any other classification 
220.12  of the data when it was in the possession of any other agency. 
220.13     The licensing board to which a report is made must transmit 
220.14  to the attorney general's office any record or data it receives 
220.15  under this subdivision for the sole purpose of having the 
220.16  attorney general's office assist that board in its 
220.17  investigation.  When the attorney general's office has informed 
220.18  an employee of the appropriate licensing board in writing that 
220.19  grounds exist to suspend or revoke a teacher's license to teach, 
220.20  that licensing board must consider suspending or revoking or 
220.21  decline to suspend or revoke the teacher's license within 45 
220.22  days of receiving a stipulation executed by the teacher under 
220.23  investigation or a recommendation from an administrative law 
220.24  judge that disciplinary action be taken. 
220.25     <i>(Effective Date:  Section 11 (122A.20, subdivision 2) is</i> 
220.26  <i>effective December 31, 1999.)</i> 
220.27     Sec. 12.  Minnesota Statutes 1998, section 122A.21, is 
220.28  amended to read: 
220.29     122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.] 
220.30     Each application for the issuance, renewal, or extension of 
220.31  a license to teach and each application for the issuance, 
220.32  renewal, or extension of a license as supervisory personnel must 
220.33  be accompanied by a processing fee in an amount set by the board 
220.34  of teaching by rule.  Each application for the issuance, 
220.35  renewal, or extension of a license as supervisory personnel must 
220.36  be accompanied by a processing fee in an amount set by the state 
221.1   board of education by rule.  The processing fee for a teacher's 
221.2   license and for the licenses of supervisory personnel must be 
221.3   paid to the executive secretary of the board of teaching.  The 
221.4   processing fee for the licenses of supervisory personnel must be 
221.5   paid to the commissioner.  The executive secretary of the board 
221.6   of teaching and the commissioner shall deposit the fees with the 
221.7   state treasurer, as provided by law, and report each month to 
221.8   the commissioner of finance the amount of fees collected.  The 
221.9   fees as set by the boards board are nonrefundable for applicants 
221.10  not qualifying for a license.  However, a fee must be refunded 
221.11  by the state treasurer in any case in which the applicant 
221.12  already holds a valid unexpired license.  The boards board may 
221.13  waive or reduce fees for applicants who apply at the same time 
221.14  for more than one license, even if the licenses are under the 
221.15  jurisdiction of different boards. 
221.16     <i>(Effective Date:  Section 12 (122A.21) is effective</i> 
221.17  <i>December 31, 1999.)</i> 
221.18     Sec. 13.  Minnesota Statutes 1998, section 122A.40, 
221.19  subdivision 5, is amended to read: 
221.20     Subd. 5.  [PROBATIONARY PERIOD.] The first three 
221.21  consecutive years of a teacher's first teaching experience in 
221.22  Minnesota in a single district is deemed to be a probationary 
221.23  period of employment, and after completion thereof, the 
221.24  probationary period in each district in which the teacher is 
221.25  thereafter employed shall be one year.  The school board must 
221.26  adopt a plan for written evaluation of teachers during the 
221.27  probationary period.  Evaluation must occur at least three times 
221.28  each year for a teacher performing services on 120 or more 
221.29  school days, at least two times each year for a teacher 
221.30  performing services on 60 to 119 school days, and at least one 
221.31  time each year for a teacher performing services on fewer than 
221.32  60 school days.  Days devoted to parent-teacher conferences, 
221.33  teachers' workshops, and other staff development opportunities 
221.34  and days on which a teacher is absent from school must not be 
221.35  included in determining the number of school days on which a 
221.36  teacher performs services.  During the probationary period any 
222.1   annual contract with any teacher may or may not be renewed as 
222.2   the school board shall see fit.  However, the board must give 
222.3   any such teacher whose contract it declines to renew for the 
222.4   following school year written notice to that effect before June 
222.5   1 August 1.  If the teacher requests reasons for any nonrenewal 
222.6   of a teaching contract, the board must give the teacher its 
222.7   reason in writing, including a statement that appropriate 
222.8   supervision was furnished describing the nature and the extent 
222.9   of such supervision furnished the teacher during the employment 
222.10  by the board, within ten days after receiving such request.  The 
222.11  school board may, after a hearing held upon due notice, 
222.12  discharge a teacher during the probationary period for cause, 
222.13  effective immediately, under section 122A.44. 
222.14     Sec. 14.  Minnesota Statutes 1998, section 122A.40, 
222.15  subdivision 7, is amended to read: 
222.16     Subd. 7.  [TERMINATION OF CONTRACT AFTER PROBATIONARY 
222.17  PERIOD.] A teacher who has completed a probationary period in 
222.18  any district, and who has not been discharged or advised of a 
222.19  refusal to renew the teacher's contract pursuant to subdivision 
222.20  5, shall have a continuing contract with such district.  
222.21  Thereafter, the teacher's contract must remain in full force and 
222.22  effect, except as modified by mutual consent of the board and 
222.23  the teacher, until terminated by a majority roll call vote of 
222.24  the full membership of the board prior to April 1 upon one of 
222.25  the grounds specified in subdivision 9 or prior to June August 1 
222.26  upon one of the grounds specified in subdivision 10 or 11, or 
222.27  until the teacher is discharged pursuant to subdivision 13, or 
222.28  by the written resignation of the teacher submitted prior to 
222.29  April 1.  If an agreement as to the terms and conditions of 
222.30  employment for the succeeding school year has not been adopted 
222.31  pursuant to the provisions of sections 179A.01 to 179A.25 prior 
222.32  to March 1, the teacher's right of resignation is extended to 
222.33  the 30th calendar day following the adoption of said contract in 
222.34  compliance with section 179A.20, subdivision 5.  Such written 
222.35  resignation by the teacher is effective as of June 30 if 
222.36  submitted prior to that date and the teachers' right of 
223.1   resignation for the school year then beginning shall cease on 
223.2   July 15.  Before a teacher's contract is terminated by the 
223.3   board, the board must notify the teacher in writing and state 
223.4   its ground for the proposed termination in reasonable detail 
223.5   together with a statement that the teacher may make a written 
223.6   request for a hearing before the board within 14 days after 
223.7   receipt of such notification.  If the grounds are those 
223.8   specified in subdivision 9 or 13, the notice must also state a 
223.9   teacher may request arbitration under subdivision 15.  Within 14 
223.10  days after receipt of this notification the teacher may make a 
223.11  written request for a hearing before the board or an arbitrator 
223.12  and it shall be granted upon reasonable notice to the teacher of 
223.13  the date set for hearing, before final action is taken.  If no 
223.14  hearing is requested within such period, it shall be deemed 
223.15  acquiescence by the teacher to the board's action.  Such 
223.16  termination shall take effect at the close of the school year in 
223.17  which the contract is terminated in the manner aforesaid.  Such 
223.18  contract may be terminated at any time by mutual consent of the 
223.19  board and the teacher and this section does not affect the 
223.20  powers of a board to suspend, discharge, or demote a teacher 
223.21  under and pursuant to other provisions of law. 
223.22     Sec. 15.  Minnesota Statutes 1998, section 122A.40, 
223.23  subdivision 16, is amended to read: 
223.24     Subd. 16.  [DECISION.] After the hearing, the board must 
223.25  issue a written decision and order.  If the board orders 
223.26  termination of a continuing contract or discharge of a teacher, 
223.27  its decision must include findings of fact based upon competent 
223.28  evidence in the record and must be served on the teacher, 
223.29  accompanied by an order of termination or discharge, prior to 
223.30  April 1 in the case of a contract termination for grounds 
223.31  specified in subdivision 9, prior to June 1 August 1 for grounds 
223.32  specified in subdivision 10 or 11, or within ten days after 
223.33  conclusion of the hearing in the case of a discharge.  If the 
223.34  decision of the board or of a reviewing court is favorable to 
223.35  the teacher, the proceedings must be dismissed and the decision 
223.36  entered in the board minutes, and all references to such 
224.1   proceedings must be excluded from the teacher's record file. 
224.2      Sec. 16.  Minnesota Statutes 1998, section 122A.41, 
224.3   subdivision 4, is amended to read: 
224.4      Subd. 4.  [PERIOD OF SERVICE AFTER PROBATIONARY PERIOD; 
224.5   DISCHARGE OR DEMOTION.] After the completion of such 
224.6   probationary period, without discharge, such teachers as are 
224.7   thereupon reemployed shall continue in service and hold their 
224.8   respective position during good behavior and efficient and 
224.9   competent service and must not be discharged or demoted except 
224.10  for cause after a hearing. 
224.11     A probationary teacher is deemed to have been reemployed 
224.12  for the ensuing school year, unless the school board in charge 
224.13  of such school gave such teacher notice in writing before June 1 
224.14  August 1 of the termination of such employment.  In event of 
224.15  such notice the employment terminates at the close of the school 
224.16  sessions of the current school year. 
224.17     Sec. 17.  Minnesota Statutes 1998, section 122A.60, 
224.18  subdivision 1, is amended to read: 
224.19     Subdivision 1.  [STAFF DEVELOPMENT COMMITTEE.] A school 
224.20  board must use the revenue authorized in section 122A.61 for 
224.21  in-service education for programs under section 120B.22, 
224.22  subdivision 2, or for staff development plans under this 
224.23  section.  The board must establish a an advisory staff 
224.24  development committee to develop the plan, assist 
224.25  site decision-making professional development teams in 
224.26  developing a site plan consistent with the goals of the plan, 
224.27  and evaluate staff development efforts at the site level.  A 
224.28  majority of the advisory committee and the site professional 
224.29  development team must be teachers representing various grade 
224.30  levels, subject areas, and special education.  The advisory 
224.31  committee must also include nonteaching staff, parents, and 
224.32  administrators.  Districts must report staff development results 
224.33  and expenditures to the commissioner in the form and manner 
224.34  determined by the commissioner.  The expenditure report must 
224.35  include expenditures by the board for district level activities 
224.36  and expenditures made by the staff.  The report must provide a 
225.1   breakdown of expenditures for (1) curriculum development and 
225.2   programs, (2) in-service education, workshops, and conferences, 
225.3   and (3) the cost of teachers or substitute teachers for staff 
225.4   development purposes.  Within each of these categories, the 
225.5   report must also indicate whether the expenditures were incurred 
225.6   at the district level or the school site level, and whether the 
225.7   school site expenditures were made possible by the grants to 
225.8   school sites that demonstrate exemplary use of allocated staff 
225.9   development revenue.  These expenditures are to be reported 
225.10  using the UFARS system.  The commissioner shall report the staff 
225.11  development expenditure data to the education committees of the 
225.12  legislature by February 15 each year.  
225.13     Sec. 18.  Minnesota Statutes 1998, section 122A.60, 
225.14  subdivision 3, is amended to read: 
225.15     Subd. 3.  [STAFF DEVELOPMENT OUTCOMES.] The advisory staff 
225.16  development committee must adopt a staff development plan for 
225.17  improving student achievement of education outcomes.  The plan 
225.18  must be consistent with education outcomes that the school board 
225.19  determines.  The plan must include ongoing staff development 
225.20  activities that contribute toward continuous improvement in 
225.21  achievement of the following goals: 
225.22     (1) improve student achievement of state and local 
225.23  education standards in all areas of the curriculum by using best 
225.24  practices methods; 
225.25     (2) effectively meet the needs of a diverse student 
225.26  population, including at-risk children, children with 
225.27  disabilities, and gifted children, within the regular classroom 
225.28  and other settings; 
225.29     (3) provide an inclusive curriculum for a racially, 
225.30  ethnically, and culturally diverse student population that is 
225.31  consistent with the state education diversity rule and the 
225.32  district's education diversity plan; 
225.33     (4) improve staff ability to collaborate and consult with 
225.34  one another and to resolve conflicts collaboration and develop 
225.35  mentoring and peer review programs for new teachers; 
225.36     (5) effectively teach and model violence prevention policy 
226.1   and curriculum that address early intervention alternatives, 
226.2   issues of harassment, and teach nonviolent alternatives for 
226.3   conflict resolution; and 
226.4      (6) provide teachers and other members of site-based 
226.5   management teams with appropriate management and financial 
226.6   management skills. 
226.7      Sec. 19.  [122A.705] [MINNESOTA NEW TEACHER PROJECT.] 
226.8      Subdivision 1.  [ESTABLISHMENT; PARTICIPATION.] The 
226.9   Minnesota new teacher project is established in the department 
226.10  of children, families, and learning to retain new teachers in 
226.11  the profession and to provide models for supporting the 
226.12  professional development of first-year and second-year 
226.13  teachers.  In order for a school district to participate in the 
226.14  new teacher project, a school board and an exclusive 
226.15  representative of the teachers in the district must agree to 
226.16  participate in the new teacher project and to the district plan 
226.17  under subdivision 2. 
226.18     Subd. 2.  [DISTRICT PLAN.] A district that participates in 
226.19  the new teacher project must submit a plan for the project to 
226.20  the commissioner for approval.  The new teacher project plan 
226.21  must be consistent with the knowledge and skills required in the 
226.22  teacher licensure rules adopted by the board of teaching and the 
226.23  state graduation requirements, and include curricula of best 
226.24  practice activities such as mentoring, intensive summer 
226.25  orientation, first-year and second-year staff development 
226.26  workshops, peer review, mutual observation between new and 
226.27  experienced teachers, consultation with national board certified 
226.28  teachers, classroom management techniques, cultural diversity, 
226.29  reading strategies, lighter workloads, and first-year 
226.30  residency.  The plan must include the participation of a teacher 
226.31  preparation program approved by the board of teaching. 
226.32     Subd. 3.  [STATE MATCH.] A district that has an approved 
226.33  new teacher project plan must receive $1,000 of state money for 
226.34  each new teacher participating in the project.  The district 
226.35  must contribute $1,500 of district money for each new teacher 
226.36  participating in the project. 
227.1      Sec. 20.  [123A.245] [COOPERATIVE UNITS; ELIGIBILITY FOR 
227.2   GRANTS.] 
227.3      A cooperative unit, through its governing board, may apply 
227.4   for all competitive grants administered by agencies of the state 
227.5   and other government or nongovernment sources. 
227.6      Sec. 21.  Minnesota Statutes 1998, section 123B.02, is 
227.7   amended by adding a subdivision to read: 
227.8      Subd. 1a.  [CONTRACTS FOR SERVICES.] A school board may 
227.9   contract with a public or private entity to provide 
227.10  instructional and noninstructional services as provided in 
227.11  subdivision 14, consistent with the district's collective 
227.12  bargaining agreement. 
227.13     Sec. 22.  Minnesota Statutes 1998, section 123B.02, 
227.14  subdivision 3, is amended to read: 
227.15     Subd. 3.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
227.16  SUPPORT.] (a) A district must not be required by any type of 
227.17  formal or informal agreement except an agreement to provide 
227.18  building space according to paragraph (f), including a joint 
227.19  powers agreement, or membership in any cooperative unit defined 
227.20  in section 123A.24, subdivision 2, to participate in or provide 
227.21  financial support for the purposes of the agreement for a time 
227.22  period in excess of four fiscal years, or the time period set 
227.23  forth in this subdivision.  Any agreement, part of an agreement, 
227.24  or other type of requirement to the contrary is void.  This 
227.25  paragraph applies only to agreements entered into between July 
227.26  1, 1993, and June 30, 1999. 
227.27     (b) This subdivision shall not affect the continued 
227.28  liability of a district for its share of bonded indebtedness or 
227.29  other debt incurred as a result of any agreement before July 1, 
227.30  1993.  The district is liable only until the obligation or debt 
227.31  is discharged and only according to the payment schedule in 
227.32  effect on July 1, 1993, except that the payment schedule may be 
227.33  altered for the purpose of restructuring debt or refunding bonds 
227.34  outstanding on July 1, 1993, if the annual payments of the 
227.35  district are not increased and if the total obligation of the 
227.36  school district for its share of outstanding bonds or other debt 
228.1   is not increased. 
228.2      (c) To cease participating in or providing financial 
228.3   support for any of the services or activities relating to the 
228.4   agreement or to terminate participation in the agreement, the 
228.5   board must adopt a resolution and notify other parties to the 
228.6   agreement of its decision on or before February 1 of any year.  
228.7   The cessation or withdrawal shall be effective June 30 of the 
228.8   same year except that for a member of an education district 
228.9   organized under sections 123A.15 to 123A.19 or an intermediate 
228.10  district organized under chapter 136D, cessation or withdrawal 
228.11  shall be effective June 30 of the following fiscal year.  At the 
228.12  option of the board, cessation or withdrawal may be effective 
228.13  June 30 of the following fiscal year for a district 
228.14  participating in any type of agreement.  
228.15     (d) Before issuing bonds or incurring other debt, the 
228.16  governing body responsible for implementing the agreement must 
228.17  adopt a resolution proposing to issue bonds or incur other debt 
228.18  and the proposed financial effect of the bonds or other debt 
228.19  upon each participating district.  The resolution must be 
228.20  adopted within a time sufficient to allow the board to adopt a 
228.21  resolution within the time permitted by this paragraph and to 
228.22  comply with the statutory deadlines set forth in sections 
228.23  122A.40, 122A.41, and 123A.33.  The governing body responsible 
228.24  for implementing the agreement shall notify each participating 
228.25  board of the contents of the resolution.  Within 120 days of 
228.26  receiving the resolution of the governing body, the school board 
228.27  of the participating district shall adopt a resolution stating: 
228.28     (1) its concurrence with issuing bonds or incurring other 
228.29  debt; 
228.30     (2) its intention to cease participating in or providing 
228.31  financial support for the service or activity related to the 
228.32  bonds or other debt; or 
228.33     (3) its intention to terminate participation in the 
228.34  agreement. 
228.35     A board adopting a resolution according to clause (1) is 
228.36  liable for its share of bonded indebtedness or other debt as 
229.1   proposed by the governing body implementing the agreement.  A 
229.2   school board adopting a resolution according to clause (2) is 
229.3   not liable for the bonded indebtedness or other debt, as 
229.4   proposed by the governing body, related to the services or 
229.5   activities in which the district ceases participating or 
229.6   providing financial support.  A board adopting a resolution 
229.7   according to clause (3) is not liable for the bonded 
229.8   indebtedness or other debt proposed by the governing body 
229.9   implementing the agreement. 
229.10     (e) After July 1, 1993, a district is liable according to 
229.11  paragraph (d) for its share of bonded indebtedness or other debt 
229.12  incurred by the governing body implementing the agreement to the 
229.13  extent that the bonds or other debt are directly related to the 
229.14  services or activities in which the district participates or for 
229.15  which the district provides financial support.  The district has 
229.16  continued liability only until the obligation or debt is 
229.17  discharged and only according to the payment schedule in effect 
229.18  at the time the governing body implementing the agreement 
229.19  provides notice to the school board, except that the payment 
229.20  schedule may be altered for the purpose of refunding the 
229.21  outstanding bonds or restructuring other debt if the annual 
229.22  payments of the district are not increased and if the total 
229.23  obligation of the district for the outstanding bonds or other 
229.24  debt is not increased. 
229.25     (f) A district that is a member of a cooperative unit as 
229.26  defined in section 123A.24, subdivision 2, may obligate itself 
229.27  to participate in and provide financial support for an agreement 
229.28  with a cooperative unit to provide school building space for a 
229.29  term not to exceed two years with an option on the part of the 
229.30  district to renew for an additional two years.  
229.31     (g) Notwithstanding any limitations imposed under this 
229.32  subdivision, a school district may, according to section 
229.33  123B.51, subdivision 4, enter into a lease of all or a portion 
229.34  of a schoolhouse that is not needed for school purposes, 
229.35  including, but not limited to, a lease with a term of more than 
229.36  one year. 
230.1      Sec. 23.  Minnesota Statutes 1998, section 123B.195, is 
230.2   amended to read: 
230.3      123B.195 [BOARD MEMBERS' RIGHT TO EMPLOYMENT.] 
230.4      Notwithstanding section 471.88, subdivision 5, a school 
230.5   board member may be newly employed or may continue to be 
230.6   employed by a school district as an employee only if there is a 
230.7   reasonable expectation at the beginning of the fiscal year or at 
230.8   the time the contract is entered into or extended that the 
230.9   amount to be earned by that officer under that contract or 
230.10  employment relationship will not exceed $5,000 in that fiscal 
230.11  year.  Notwithstanding section 122A.40 or 122A.41 or other law, 
230.12  if the officer does not receive unanimous majority approval to 
230.13  be initially employed or to continue in employment at a meeting 
230.14  at which all board members are present, that employment is 
230.15  immediately terminated and that officer has no further rights to 
230.16  employment while serving as a school board member in the 
230.17  district. 
230.18     Sec. 24.  Minnesota Statutes 1998, section 123B.77, 
230.19  subdivision 4, is amended to read: 
230.20     Subd. 4.  [BUDGET APPROVAL.] Prior to July 1 of each year, 
230.21  the board of each district must approve and adopt its revenue 
230.22  and expenditure budgets for the next school year.  The budget 
230.23  document so adopted must be considered an 
230.24  expenditure-authorizing or appropriations document.  No funds 
230.25  shall be expended by any board or district for any purpose in 
230.26  any school year prior to the adoption of the budget document 
230.27  which authorizes that expenditure, or prior to an amendment to 
230.28  the budget document by the board to authorize the expenditure.  
230.29  Expenditures of funds in violation of this subdivision shall be 
230.30  considered unlawful expenditures.  Prior to the appropriation of 
230.31  revenue for the next school year in the initial budget, the 
230.32  board shall calculate the general education revenue, basic 
230.33  skills revenue, and referendum revenue for that year that it 
230.34  estimates will be generated by the pupils in attendance at each 
230.35  site, and shall inform each site of that estimate and report 
230.36  this information to the department of children, families, and 
231.1   learning. 
231.2      Sec. 25.  Minnesota Statutes 1998, section 123B.83, 
231.3   subdivision 4, is amended to read: 
231.4      Subd. 4.  [SPECIAL OPERATING PLAN.] (1) If the net negative 
231.5   unappropriated operating fund balance as defined in section 
231.6   126C.01, subdivision 11, calculated in accordance with the 
231.7   uniform financial accounting and reporting standards for 
231.8   Minnesota school districts, as of June 30 each year, is more 
231.9   than 2-1/2 percent of the year's expenditure amount, the 
231.10  district must, prior to January 31 of the next fiscal year, 
231.11  submit a special operating plan to reduce the district's deficit 
231.12  expenditures to the commissioner for approval.  The commissioner 
231.13  may also require the district to provide evidence that the 
231.14  district meets and will continue to meet all of the curriculum 
231.15  high school graduation requirements of the state board. 
231.16     Notwithstanding any other law to the contrary, a district 
231.17  submitting a special operating plan to the commissioner under 
231.18  this clause which is disapproved by the commissioner must not 
231.19  receive any aid pursuant to chapters 120B, 122A, 123A, 123B, 
231.20  124D, 125A, 126C, and 127A until a special operating plan of the 
231.21  district is so approved. 
231.22     (2) A district must receive aids pending the approval of 
231.23  its special operating plan under clause (1).  A district which 
231.24  complies with its approved operating plan must receive aids as 
231.25  long as the district continues to comply with the approved 
231.26  operating plan. 
231.27     <i>(Effective Date:  Section 25 (123B.83, subdivision 4) is</i> 
231.28  <i>effective December 31, 1999.)</i> 
231.29     Sec. 26.  Minnesota Statutes 1998, section 123B.90, 
231.30  subdivision 2, is amended to read: 
231.31     Subd. 2.  [STUDENT TRAINING.] (a) Each district must 
231.32  provide public school pupils enrolled in grades kindergarten 
231.33  through 10 with age-appropriate school bus safety training.  The 
231.34  training must be results-oriented and shall consist of both 
231.35  classroom instruction and practical training using a school 
231.36  bus.  Upon completing the training, a student shall be able to 
232.1   demonstrate knowledge and understanding of at least the 
232.2   following competencies and concepts: 
232.3      (1) transportation by school bus is a privilege and not a 
232.4   right; 
232.5      (2) district policies for student conduct and school bus 
232.6   safety; 
232.7      (3) appropriate conduct while on the school bus; 
232.8      (4) the danger zones surrounding a school bus; 
232.9      (5) procedures for safely boarding and leaving a school 
232.10  bus; 
232.11     (6) procedures for safe street or road crossing; and 
232.12     (7) school bus evacuation and other emergency procedures; 
232.13  and 
232.14     (8) appropriate training on the use of lap belts or lap and 
232.15  shoulder belts, if the district uses buses equipped with lap 
232.16  belts or lap and shoulder belts. 
232.17     (b) Each nonpublic school located within the district must 
232.18  provide all nonpublic school pupils enrolled in grades 
232.19  kindergarten through 10 who are transported by school bus at 
232.20  public expense and attend school within the district's 
232.21  boundaries with training as required in paragraph (a).  The 
232.22  school district shall make a bus available for the practical 
232.23  training if the district transports the nonpublic students.  
232.24  Each nonpublic school shall provide the instruction. 
232.25     (c) All students enrolled in grades kindergarten through 3 
232.26  who are transported by school bus and are enrolled during the 
232.27  first or second week of school must demonstrate achievement of 
232.28  the school bus safety training competencies by the end of the 
232.29  third week of school.  All students enrolled in grades 4 through 
232.30  10 who are transported by school bus and are enrolled during the 
232.31  first or second week of school must demonstrate achievement of 
232.32  the competencies by the end of the sixth week of school.  
232.33  Students enrolled in grades kindergarten through 10 who enroll 
232.34  in a school after the second week of school and are transported 
232.35  by school bus shall undergo school bus safety training and 
232.36  demonstrate achievement of the school bus safety competencies 
233.1   within four weeks of the first day of attendance.  The pupil 
233.2   transportation safety director in each district must certify to 
233.3   the commissioner annually that all students transported by 
233.4   school bus within the district have satisfactorily demonstrated 
233.5   knowledge and understanding of the school bus safety 
233.6   competencies according to this section or provide an explanation 
233.7   for a student's failure to demonstrate the competencies.  The 
233.8   principal or other chief administrator of each nonpublic school 
233.9   must certify annually to the public transportation safety 
233.10  director of the district in which the school is located that all 
233.11  of the school's students transported by school bus at public 
233.12  expense have received training.  A district may deny 
233.13  transportation to a student who fails to demonstrate the 
233.14  competencies, unless the student is unable to achieve the 
233.15  competencies due to a disability, or to a student who attends a 
233.16  nonpublic school that fails to provide training as required by 
233.17  this subdivision. 
233.18     (d) A district and a nonpublic school with students 
233.19  transported by school bus at public expense must, to the extent 
233.20  possible, provide kindergarten pupils with bus safety training 
233.21  before the first day of school. 
233.22     (e) A district and a nonpublic school with students 
233.23  transported by school bus at public expense must also provide 
233.24  student safety education for bicycling and pedestrian safety, 
233.25  for students enrolled in grades kindergarten through 5. 
233.26     (f) A district and a nonpublic school with students 
233.27  transported by school bus at public expense must make reasonable 
233.28  accommodations for the school bus, bicycle, and pedestrian 
233.29  safety training of pupils known to speak English as a second 
233.30  language and pupils with disabilities. 
233.31     Sec. 27.  Minnesota Statutes 1998, section 123B.90, 
233.32  subdivision 3, is amended to read: 
233.33     Subd. 3.  [MODEL TRAINING PROGRAM.] The commissioner shall 
233.34  develop a comprehensive model school bus safety training program 
233.35  for pupils who ride the bus that includes bus safety curriculum 
233.36  for both classroom and practical instruction, methods for 
234.1   assessing attainment of school bus safety competencies, and 
234.2   age-appropriate instructional materials.  The model training 
234.3   program for students riding buses with lap belts or lap and 
234.4   shoulder belts must include information on the appropriate use 
234.5   of lap belts or lap and shoulder belts.  The program must be 
234.6   adaptable for use by students with disabilities. 
234.7      Sec. 28.  Minnesota Statutes 1998, section 123B.91, 
234.8   subdivision 1, is amended to read: 
234.9      Subdivision 1.  [COMPREHENSIVE POLICY.] Each district must 
234.10  develop and implement a comprehensive, written policy governing 
234.11  pupil transportation safety, including transportation of 
234.12  nonpublic school students, when applicable.  The policy shall, 
234.13  at minimum, contain: 
234.14     (1) provisions for appropriate student bus safety training 
234.15  under section 123B.90; 
234.16     (2) rules governing student conduct on school buses and in 
234.17  school bus loading and unloading areas; 
234.18     (3) a statement of parent or guardian responsibilities 
234.19  relating to school bus safety; 
234.20     (4) provisions for notifying students and parents or 
234.21  guardians of their responsibilities and the rules, including the 
234.22  district's seat belt policy, if applicable; 
234.23     (5) an intradistrict system for reporting school bus 
234.24  accidents or misconduct and a system for dealing with local law 
234.25  enforcement officials in cases of criminal conduct on a school 
234.26  bus; 
234.27     (6) a discipline policy to address violations of school bus 
234.28  safety rules, including procedures for revoking a student's bus 
234.29  riding privileges in cases of serious or repeated misconduct; 
234.30     (7) a system for integrating school bus misconduct records 
234.31  with other discipline records; 
234.32     (8) a statement of bus driver duties; 
234.33     (9) planned expenditures for safety activities under 
234.34  section 123B.89 and, where applicable, provisions governing bus 
234.35  monitor qualifications, training, and duties; 
234.36     (10) rules governing the use and maintenance of type III 
235.1   vehicles, drivers of type III vehicles, qualifications to drive 
235.2   a type III vehicle, qualifications for a type III vehicle and 
235.3   the circumstances under which a student may be transported in a 
235.4   type III vehicle; 
235.5      (11) operating rules and procedures; 
235.6      (12) provisions for annual bus driver in-service training 
235.7   and evaluation; 
235.8      (13) emergency procedures; 
235.9      (14) a system for maintaining and inspecting equipment; 
235.10     (15) requirements of the school district, if any, that 
235.11  exceed state law minimum requirements for school bus operations; 
235.12  and 
235.13     (16) requirements for basic first aid training, which must 
235.14  include the Heimlich maneuver and procedures for dealing with 
235.15  obstructed airways, shock, bleeding, and seizures. 
235.16     Districts are encouraged to use the model policy developed 
235.17  by the Minnesota school boards association, the department of 
235.18  public safety, and the department of children, families, and 
235.19  learning, as well as the current edition of the "National 
235.20  Standards for School Buses and Operations" published by the 
235.21  National Safety Council, in developing safety policies.  Each 
235.22  district shall review its policy annually and make appropriate 
235.23  amendments, which must be submitted to the school bus safety 
235.24  advisory committee within one month of approval by the school 
235.25  board. 
235.26     Sec. 29.  Minnesota Statutes 1998, section 124D.03, is 
235.27  amended by adding a subdivision to read: 
235.28     Subd. 12.  [TERMINATION OF ENROLLMENT.] A district may 
235.29  terminate the enrollment of a nonresident student enrolled under 
235.30  this section or section 124D.07 or 124D.08 at the end of a 
235.31  school year if the student meets the definition of a habitual 
235.32  truant under section 260.015, subdivision 19, the student has 
235.33  been provided appropriate services under chapter 260A, and the 
235.34  student's case has been referred to juvenile court.  A district 
235.35  may also terminate the enrollment of a nonresident student over 
235.36  the age of 16 enrolled under this section if the student is 
236.1   absent without lawful excuse for one or more periods on 15 
236.2   school days and has not lawfully withdrawn from school under 
236.3   section 120A.22, subdivision 8. 
236.4      Sec. 30.  Minnesota Statutes 1998, section 124D.86, 
236.5   subdivision 1, is amended to read: 
236.6      Subdivision 1.  [USE OF THE REVENUE.] Integration revenue 
236.7   under this section must be used for programs established under a 
236.8   desegregation plan mandated by the state board or under court 
236.9   order, to increase learning opportunities and reduce the 
236.10  learning gap between learners living in high concentrations of 
236.11  poverty and their peers. 
236.12     <i>(Effective Date:  Section 30 (124D.86, subdivision 1) is</i> 
236.13  <i>effective December 31, 1999.)</i> 
236.14     Sec. 31.  Minnesota Statutes 1998, section 124D.86, 
236.15  subdivision 3, is amended to read: 
236.16     Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 1999 and 
236.17  later fiscal years, integration revenue equals the following 
236.18  amounts: 
236.19     (1) for independent school district No. 709, Duluth, $193 
236.20  times the resident pupil units for the school year; 
236.21     (2) for independent school district No. 625, St. Paul, $427 
236.22  times the resident pupil units for the school year; 
236.23     (3) for special school district No. 1, Minneapolis, $523 
236.24  times the resident pupil units for the school year; and 
236.25     (4) for a district not listed in clause (1), (2), or (3) 
236.26  that is required to implement a plan according to the 
236.27  requirements of Minnesota Rules, parts 3535.0200 to 3535.2200, 
236.28  the lesser of the actual cost of implementing the plan during 
236.29  the fiscal year or $93 times the resident pupil units for the 
236.30  school year. 
236.31     <i>(Effective Date:  Section 31 (124D.86, subdivision 3) is</i> 
236.32  <i>effective December 31, 1999.)</i> 
236.33     Sec. 32.  Minnesota Statutes 1998, section 124D.89, 
236.34  subdivision 1, is amended to read: 
236.35     Subdivision 1.  [CULTURAL EXCHANGE PROGRAM GOALS.] (a) A 
236.36  cultural exchange grant program is established to develop and 
237.1   create opportunities for children and staff of different ethnic, 
237.2   racial, and other cultural backgrounds to experience educational 
237.3   and social exchange.  Student and staff exchanges under this 
237.4   section may only take place between a district with a 
237.5   desegregation plan approved by the state board of education and 
237.6   a district without a desegregation plan.  Participating school 
237.7   districts shall offer summer programs for credit with the goals 
237.8   set forth in paragraphs (b) to (e). 
237.9      (b) The program must develop curriculum reflective of 
237.10  particular ethnic, racial, and other cultural aspects of various 
237.11  demographic groups in the state. 
237.12     (c) The program must develop immersion programs that are 
237.13  coordinated with the programs offered in paragraph (b). 
237.14     (d) The program must create opportunities for students from 
237.15  across the state to enroll in summer programs in districts other 
237.16  than the one of residence, or in other schools within their 
237.17  district of residence. 
237.18     (e) The program must create opportunities for staff 
237.19  exchanges on a cultural basis. 
237.20     <i>(Effective Date:  Section 32 (124D.89, subdivision 1) is</i> 
237.21  <i>effective December 31, 1999.)</i> 
237.22     Sec. 33.  Minnesota Statutes 1998, section 124D.94, 
237.23  subdivision 3, is amended to read: 
237.24     Subd. 3.  [BOARD OF DIRECTORS.] The board of directors of 
237.25  the foundation shall consist of the commissioner of children, 
237.26  families, and learning, a member of the state board of education 
237.27  selected by the state board who shall serve as chair and 20 
237.28  members to be appointed by the governor.  Of the 20 members 
237.29  appointed by the governor, eight shall represent a variety of 
237.30  education groups and 12 shall represent a variety of business 
237.31  groups.  The members of the board of directors shall select one 
237.32  member to serve as chair.  The commissioner of children, 
237.33  families, and learning shall serve as secretary for the board of 
237.34  directors and provide administrative support to the foundation.  
237.35  An executive committee of the foundation board composed of the 
237.36  board officers and chairs of board committees, may only advise 
238.1   and make recommendations to the foundation board.  
238.2      <i>(Effective Date:  Section 33 (124D.94, subdivision 3) is</i> 
238.3   <i>effective December 31, 1999.)</i> 
238.4      Sec. 34.  Minnesota Statutes 1998, section 125A.09, 
238.5   subdivision 11, is amended to read: 
238.6      Subd. 11.  [HEARING REVIEW OFFICER'S QUALIFICATIONS.] The 
238.7   commissioner must select an individual who has the 
238.8   qualifications enumerated in this subdivision to serve as the 
238.9   hearing review officer: 
238.10     (1) the individual must be knowledgeable and impartial; 
238.11     (2) the individual must not have a personal interest in or 
238.12  specific involvement with the student who is a party to the 
238.13  hearing; 
238.14     (3) the individual must not have been employed as an 
238.15  administrator by the district that is a party to the hearing; 
238.16     (4) the individual must not have been involved in the 
238.17  selection of the administrators of the district that is a party 
238.18  to the hearing; 
238.19     (5) the individual must not have a personal, economic, or 
238.20  professional interest in the outcome of the hearing other than 
238.21  the proper administration of the federal and state laws, rules, 
238.22  and policies; 
238.23     (6) the individual must not have substantial involvement in 
238.24  the development of a state or local policy or procedures that 
238.25  are challenged in the appeal; 
238.26     (7) the individual is not a current employee or board 
238.27  member of a Minnesota public school district, education 
238.28  district, intermediate unit or regional education agency, or the 
238.29  department, and the state board of education; and 
238.30     (8) the individual is not a current employee or board 
238.31  member of a disability advocacy organization or group. 
238.32     <i>(Effective Date:  Section 34 (125A.09, subdivision 11) is</i> 
238.33  <i>effective December 31, 1999.)</i> 
238.34     Sec. 35.  Minnesota Statutes 1998, section 127A.05, 
238.35  subdivision 1, is amended to read: 
238.36     Subdivision 1.  [APPOINTMENT AND DUTIES.] The department 
239.1   shall be under the administrative control of the commissioner of 
239.2   children, families, and learning which office is 
239.3   established.  The commissioner shall be the secretary of the 
239.4   state board.  The governor shall appoint the commissioner under 
239.5   the provisions of section 15.06.  
239.6      The commissioner shall be a person who possesses 
239.7   educational attainment and breadth of experience in the 
239.8   administration of public education and of the finances 
239.9   pertaining thereto commensurate with the spirit and intent of 
239.10  this code.  Notwithstanding any other law to the contrary, the 
239.11  commissioner may appoint two deputy commissioners who shall 
239.12  serve in the unclassified service.  The commissioner shall also 
239.13  appoint other employees as may be necessary for the organization 
239.14  of the department.  The commissioner shall perform such duties 
239.15  as the law and the rules of the state board may provide and be 
239.16  held responsible for the efficient administration and discipline 
239.17  of the department.  The commissioner shall make recommendations 
239.18  to the board and be is charged with the execution of powers and 
239.19  duties which the state board may prescribe, from time to time, 
239.20  to promote public education in the state, and to safeguard the 
239.21  finances pertaining thereto, and to enable the state board to 
239.22  carry out its duties. 
239.23     <i>(Effective Date:  Section 35 (127A.05, subdivision 1) is</i> 
239.24  <i>effective December 31, 1999.)</i> 
239.25     Sec. 36.  [127A.25] [SURVEY OF DISTRICTS.] 
239.26     The commissioner of children, families, and learning shall 
239.27  survey the state's school districts and report to the education 
239.28  committees of the legislature by January 15 of each odd-numbered 
239.29  year on the status of the teacher shortage and the substitute 
239.30  teacher shortage, including shortages in subject areas and 
239.31  regions of the state.  The report must also include how 
239.32  districts are making progress in hiring teachers and substitutes 
239.33  in the areas of shortage. 
239.34     Sec. 37.  Minnesota Statutes 1998, section 127A.41, 
239.35  subdivision 5, is amended to read: 
239.36     Subd. 5.  [DISTRICT APPEAL OF AID REDUCTION; INSPECTION OF 
240.1   DISTRICT SCHOOLS AND ACCOUNTS AND RECORDS.] A reduction of aid 
240.2   under this section may be appealed to the state board of 
240.3   education and its decision shall be final.  Public schools shall 
240.4   at all times be open to the inspection of the commissioner.  The 
240.5   accounts and records of any district must be open to inspection 
240.6   by the state auditor, the state board, or the commissioner for 
240.7   the purpose of audits conducted under this section.  Each 
240.8   district shall keep for a minimum of three years at least the 
240.9   following:  (1) identification of the annual session days held, 
240.10  together with a record of the length of each session day, (2) a 
240.11  record of each pupil's daily attendance, with entrance and 
240.12  withdrawal dates, and (3) identification of the pupils 
240.13  transported who are reported for transportation aid. 
240.14     <i>(Effective Date:  Section 37 (127A.41, subdivision 5) is</i> 
240.15  <i>effective December 31, 1999.)</i> 
240.16     Sec. 38.  Minnesota Statutes 1998, section 127A.42, 
240.17  subdivision 5, is amended to read: 
240.18     Subd. 5.  [DISPUTE VIOLATIONS; HEARING.] The board to which 
240.19  such notice is given may, by a majority vote of the whole board, 
240.20  decide to dispute that the specified violation exists or that 
240.21  the time allowed is reasonable or the correction specified is 
240.22  correct, or that the commissioner may reduce aids.  The board 
240.23  must give the commissioner written notice of the decision.  If 
240.24  the commissioner, after further investigation as the 
240.25  commissioner deems necessary, adheres to the previous 
240.26  notice, the board shall be entitled to a hearing by the state 
240.27  board the commissioner shall notify the school board of its 
240.28  decision.  The state board must set a hearing time and place and 
240.29  the board of the district must be given notice by mail.  The 
240.30  state board must adopt rules governing the proceedings for 
240.31  hearings.  The hearings must be designed to give a full and fair 
240.32  hearing and permit interested parties an opportunity to produce 
240.33  evidence relating to the issues involved.  The rules may provide 
240.34  that any question of fact to be determined at the hearing may be 
240.35  referred to one or more members of the board or to an employee 
240.36  of the state board acting as a referee to hear evidence and 
241.1   report the testimony taken to the state board.  The state board, 
241.2   or a person designated to receive evidence at a hearing, shall 
241.3   have the same right to issue subpoenas and administer oaths and 
241.4   parties to the hearing shall have the same right to subpoenas 
241.5   issued as are allowed for proceedings before the industrial 
241.6   commission.  A stenographic record must be made of all testimony 
241.7   given and other proceedings during the hearing.  If practicable, 
241.8   rules governing admission of evidence in courts shall apply to 
241.9   the hearing.  The decision of the state board must be in writing 
241.10  and the controlling facts upon which the decision is made must 
241.11  be stated in sufficient detail to apprise the parties and the 
241.12  reviewing court of the basis and reason for the decision.  The 
241.13  decision must be confined to whether any of the specified 
241.14  violations existed at the date of the commissioner's first 
241.15  notice, whether the violations were corrected within the time 
241.16  permitted, and whether the violations require reduction of the 
241.17  state aids under this section. 
241.18     <i>(Effective Date:  Section 38 (127A.42, subdivision 5) is</i> 
241.19  <i>effective December 31, 1999.)</i> 
241.20     Sec. 39.  Minnesota Statutes 1998, section 127A.42, 
241.21  subdivision 6, is amended to read: 
241.22     Subd. 6.  [VIOLATION; AID REDUCTION.] The commissioner 
241.23  shall not reduce state aids payable to the district if the 
241.24  violation specified is corrected within the time permitted, or 
241.25  if the commissioner on being notified of the district board's 
241.26  decision to dispute decides the violation does not exist, or if 
241.27  the state board decides after hearing no violation specified in 
241.28  the commissioner's notice existed at the time of the notice, or 
241.29  that the violations were corrected within the time permitted.  
241.30  Otherwise state aids payable to the district for the year in 
241.31  which the violation occurred shall be reduced as follows:  The 
241.32  total amount of state aids to which the district may be entitled 
241.33  shall be reduced in the proportion that the period during which 
241.34  a specified violation continued, computed from the last day of 
241.35  the time permitted for correction, bears to the total number of 
241.36  days school is held in the district during the year in which a 
242.1   violation exists, multiplied by 60 percent of the basic revenue, 
242.2   as defined in section 126C.10, subdivision 2, of the district 
242.3   for that year. 
242.4      <i>(Effective Date:  Section 39 (127A.42, subdivision 6) is</i> 
242.5   <i>effective December 31, 1999.)</i> 
242.6      Sec. 40.  Minnesota Statutes 1998, section 127A.60, 
242.7   subdivision 1, is amended to read: 
242.8      Subdivision 1.  [DEPARTMENT.] A state department of 
242.9   children, families, and learning is hereby created which shall 
242.10  be maintained under the direction of a state board of education 
242.11  composed of nine representative citizens of the state, at least 
242.12  one of whom shall reside in each congressional district in the 
242.13  state. 
242.14     Of the nine representative citizens of the state who are 
242.15  appointed to the state board of education not less than three 
242.16  members thereof shall previously thereto have served as an 
242.17  elected member of a board of education of a school district 
242.18  however organized. 
242.19     The members of the state board shall be appointed by the 
242.20  governor, with the advice and consent of the senate.  One member 
242.21  shall be chosen annually as president, but no member shall serve 
242.22  as president more than three consecutive years.  The state board 
242.23  shall hold its annual meeting in August.  It shall hold meetings 
242.24  on dates and at places as it designates.  No member shall hold 
242.25  any public office, or represent or be employed by any board of 
242.26  education or school district, public or private, and shall not 
242.27  voluntarily have any personal financial interest in any contract 
242.28  with a board of education or school district, or be engaged in 
242.29  any capacity where a conflict of interest may arise. 
242.30     <i>(Effective Date:  Section 40 (127A.60, subdivision 1) is</i> 
242.31  <i>effective December 31, 1999.)</i> 
242.32     Sec. 41.  Minnesota Statutes 1998, section 127A.66, 
242.33  subdivision 2, is amended to read: 
242.34     Subd. 2.  [ADMINISTRATIVE RULES.] The state board 
242.35  commissioner may adopt new rules and amend them or amend any of 
242.36  its existing rules only under specific authority and consistent 
243.1   with the requirements of chapter 14.  The state board 
243.2   commissioner may repeal any of its the commissioner's existing 
243.3   rules.  Notwithstanding the provisions of section 14.05, 
243.4   subdivision 4, the state board commissioner may grant a variance 
243.5   to its the commissioner's rules upon application by a school 
243.6   district for purposes of implementing experimental programs in 
243.7   learning or school management.  This subdivision shall not 
243.8   prohibit the state board commissioner from making technical 
243.9   changes or corrections to its the commissioner's rules. 
243.10     <i>(Effective Date:  Section 41 (127A.66, subdivision 2) is</i> 
243.11  <i>effective December 31, 1999.)</i> 
243.12     Sec. 42.  Minnesota Statutes 1998, section 128C.01, 
243.13  subdivision 4, is amended to read: 
243.14     Subd. 4.  [BOARD.] (a) The league must have a 20-member 
243.15  governing board. 
243.16     (1) The governor must appoint four members according to 
243.17  section 15.0597.  Each of the four appointees must be a parent.  
243.18  At least one of them must be an American Indian, an Asian, a 
243.19  Black, or a Hispanic. 
243.20     (2) The Minnesota association of secondary school 
243.21  principals must appoint two of its members. 
243.22     (3) The remaining 14 members must be selected according to 
243.23  league bylaws.  
243.24     (b) The terms, compensation, removal of members, and the 
243.25  filling of membership vacancies are governed by section 15.0575, 
243.26  except that the four-year terms begin on August 1 and end on 
243.27  July 31.  As provided by section 15.0575, members who are 
243.28  full-time state employees or full-time employees of school 
243.29  districts or other political subdivisions of the state may not 
243.30  receive any per diem payment for service on the board. 
243.31     Sec. 43.  Minnesota Statutes 1998, section 128C.02, is 
243.32  amended by adding a subdivision to read: 
243.33     Subd. 9.  [PURCHASING.] (a) In purchasing goods and 
243.34  services, the league must follow all laws that apply to school 
243.35  districts under sections 123B.52 and 471.345. 
243.36     (b) The league may not enforce any national rule that 
244.1   directs or controls school purchasing of athletic supplies and 
244.2   equipment. 
244.3      Sec. 44.  [128C.075] [COOPERATIVE SPONSORSHIPS.] 
244.4      An interscholastic conference or other entity must not 
244.5   adopt a policy that limits a school board's power to enter into 
244.6   a cooperative sponsorship agreement. 
244.7      Sec. 45.  Minnesota Statutes 1998, section 128C.12, 
244.8   subdivision 1, is amended to read: 
244.9      Subdivision 1.  [DUES AND EVENTS REVENUE.] The state 
244.10  auditor annually must examine the accounts of, and audit all 
244.11  money paid to, the state high school league by its members.  The 
244.12  audit must include financial and compliance issues.  The state 
244.13  auditor must also audit all money derived from any event 
244.14  sponsored by the league.  League audits must include audits of 
244.15  administrative regions of the league.  The league and its 
244.16  administrative regions may not contract with private auditors.  
244.17  The scope of the state auditor's examinations of the league must 
244.18  be agreed upon by the board and the state auditor, provided that 
244.19  all requirements of this section must be met. 
244.20     Sec. 46.  Minnesota Statutes 1998, section 128C.20, 
244.21  subdivision 1, is amended to read: 
244.22     Subdivision 1.  [ANNUALLY.] Each year the commissioner of 
244.23  children, families, and learning shall obtain and review the 
244.24  following information about the league: 
244.25     (1) an accurate and concise summary of the annual financial 
244.26  and compliance audit prepared by the state auditor that includes 
244.27  information about the compensation of and the expenditures by 
244.28  the executive director of the league and league staff; 
244.29     (2) a list of all complaints filed with the league and all 
244.30  lawsuits filed against the league and the disposition of those 
244.31  complaints and lawsuits; 
244.32     (3) an explanation of the executive director's performance 
244.33  review; 
244.34     (4) information about the extent to which the league has 
244.35  implemented its affirmative action policy, its comparable worth 
244.36  plan, and its sexual harassment and violence policy and rules; 
245.1   and 
245.2      (5) an evaluation of any proposed changes in league policy. 
245.3      The commissioner may examine any league activities or 
245.4   league-related issues when the commissioner believes this review 
245.5   is warranted. 
245.6      Sec. 47.  Minnesota Statutes 1998, section 128C.20, 
245.7   subdivision 2, is amended to read: 
245.8      Subd. 2.  [RECOMMEND LAWS RECOMMENDATIONS.] The board of 
245.9   directors shall submit any proposed changes in league bylaws or 
245.10  policies to the commissioner for review and comment at least 30 
245.11  days before the effective date of these bylaws or policies.  The 
245.12  commissioner shall review and report to the board of directors, 
245.13  the representative assembly, and the chairs of the house and 
245.14  senate government operations and education committees on the 
245.15  proposed changes within seven days of completing the review and 
245.16  comment.  The commissioner may recommend to the legislature 
245.17  whether any legislation is made necessary by league activities.  
245.18     Sec. 48.  Minnesota Statutes 1998, section 136D.281, 
245.19  subdivision 4, is amended to read: 
245.20     Subd. 4.  [REVERSE REFERENDUM.] The intermediate school 
245.21  board shall not may sell and issue bonds for acquisition or 
245.22  betterment purposes if:  (1) each member school district board 
245.23  has adopted a resolution authorizing the project; (2) the 
245.24  intermediate board has prepared and published in a newspaper of 
245.25  general circulation in the district a notice of the public 
245.26  meeting on the intermediate district's intent to sell bonds; and 
245.27  (3) the intermediate board has adopted a resolution authorizing 
245.28  the bonds.  The resolution becomes final unless within 30 days 
245.29  after the meeting where the resolution was adopted a petition 
245.30  requesting an election signed by a number of qualified voters in 
245.31  excess of five percent of the registered voters of the 
245.32  intermediate school district on the day the petition is filed 
245.33  with the board.  If the petition is filed, then the board 
245.34  resolution authorizing the sale and issuance of bonds has no 
245.35  effect until the question of their issuance has been submitted 
245.36  to the voters of the intermediate school district at a special 
246.1   election held in and for the intermediate district.  The date of 
246.2   the election, the question to be submitted, and all other 
246.3   necessary conduct of the election shall be fixed by the 
246.4   intermediate school board.  The election shall be conducted and 
246.5   canvassed under the direction of the intermediate school board 
246.6   in accordance with chapter 205A, insofar as applicable. 
246.7      If a majority of the total number of votes cast on the 
246.8   question within the intermediate school district is in favor of 
246.9   the question, the intermediate school board may proceed with the 
246.10  sale and issuance of the bonds. 
246.11     The bonds shall be general obligations of the intermediate 
246.12  school district; however, each member school district must each 
246.13  year certify its proportionate share of the debt service levy on 
246.14  the bonds, with the allocation of its share of that levy 
246.15  determined in accordance with the resolution authorizing the 
246.16  project previously adopted by each member school board.  For 
246.17  purposes of section 123B.53, the debt service levies certified 
246.18  for this purpose by an individual member school district shall 
246.19  be considered debt service levies of that school district.  By 
246.20  July 1 and December 1 of each year, the school board of each 
246.21  member school district shall transfer to the intermediate school 
246.22  district an amount equal to 50 percent of the debt service levy 
246.23  certified by that member school district in the previous fiscal 
246.24  year to pay its proportionate share. 
246.25     Sec. 49.  Minnesota Statutes 1998, section 136D.741, 
246.26  subdivision 4, is amended to read: 
246.27     Subd. 4.  [REVERSE REFERENDUM.] The intermediate school 
246.28  board shall not may sell and issue bonds for acquisition or 
246.29  betterment purposes if:  (1) each member school district board 
246.30  has adopted a resolution authorizing the project; (2) the 
246.31  intermediate board has prepared and published in a newspaper of 
246.32  general circulation in the district a notice of the public 
246.33  meeting on the intermediate district's intent to sell bonds; and 
246.34  (3) the intermediate board has adopted a resolution authorizing 
246.35  the bonds.  The resolution becomes final unless within 30 days 
246.36  after the meeting where the resolution was adopted a petition 
247.1   requesting an election signed by a number of qualified voters in 
247.2   excess of five percent of the registered voters of the 
247.3   intermediate school district on the day the petition is filed 
247.4   with the board.  If the petition is filed, then the board 
247.5   resolution authorizing the sale and issuance of bonds has no 
247.6   effect until the question of their issuance has been submitted 
247.7   to the voters of the intermediate school district at a special 
247.8   election held in and for such intermediate district.  The date 
247.9   of such election, the question to be submitted, and all other 
247.10  necessary conduct of such election shall be fixed by the 
247.11  intermediate school board and said election shall be conducted 
247.12  and canvassed under the direction of the intermediate school 
247.13  board in accordance with chapter 205A, insofar as the same may 
247.14  be deemed applicable. 
247.15     If a majority of the total number of votes cast on the 
247.16  question within the intermediate school district is in favor of 
247.17  the question, the intermediate school board may thereupon 
247.18  proceed with the sale and the issuance of said bonds. 
247.19     The bonds shall be general obligations of the intermediate 
247.20  school district; however, each member school district must each 
247.21  year certify its proportionate share of the debt service levy on 
247.22  the bonds, with the allocation of its share of that levy 
247.23  determined in accordance with the resolution authorizing the 
247.24  project previously adopted by each member school board.  For 
247.25  purposes of section 123B.53, the debt service levies certified 
247.26  for this purpose by an individual member school district shall 
247.27  be considered debt service levies of that school district.  By 
247.28  July 1 and December 1 of each year, the school board of each 
247.29  member school district shall transfer to the intermediate school 
247.30  district an amount equal to 50 percent of the debt service levy 
247.31  certified by that member school district in the previous fiscal 
247.32  year to pay its proportionate share. 
247.33     Sec. 50.  Minnesota Statutes 1998, section 136D.88, 
247.34  subdivision 4, is amended to read: 
247.35     Subd. 4.  [REVERSE REFERENDUM.] The intermediate school 
247.36  board shall not may sell and issue bonds for acquisition or 
248.1   betterment purposes if:  (1) each member school district board 
248.2   has adopted a resolution authorizing the project; (2) the 
248.3   intermediate board has prepared and published in a newspaper of 
248.4   general circulation in the district a notice of the public 
248.5   meeting on the intermediate district's intent to sell bonds; and 
248.6   (3) the intermediate board has adopted a resolution authorizing 
248.7   the bonds.  The resolution becomes final unless within 30 days 
248.8   after the meeting where the resolution was adopted a petition 
248.9   requesting an election signed by a number of qualified voters in 
248.10  excess of five percent of the registered voters of the 
248.11  intermediate school district on the day the petition is filed 
248.12  with the board.  If the petition is filed, then the board 
248.13  resolution authorizing the sale and issuance of bonds has no 
248.14  effect until the question of their issuance has been submitted 
248.15  to the voters of the intermediate school district at a special 
248.16  election held in and for the intermediate district.  The date of 
248.17  the election, the question to be submitted, and all other 
248.18  necessary conduct of the election shall be fixed by the 
248.19  intermediate school board.  The election shall be conducted and 
248.20  canvassed under the direction of the intermediate school board 
248.21  in accordance with chapter 205A, insofar as applicable. 
248.22     If a majority of the total number of votes cast on the 
248.23  question within the intermediate school district is in favor of 
248.24  the question, the intermediate school board may thereupon 
248.25  proceed with the sale and issuance of the bonds. 
248.26     The bonds shall be general obligations of the intermediate 
248.27  school district; however, each member school district must each 
248.28  year certify its proportionate share of the debt service levy on 
248.29  the bonds, with the allocation of its share of that levy 
248.30  determined in accordance with the resolution authorizing the 
248.31  project previously adopted by each member school board.  For 
248.32  purposes of section 123B.53, the debt service levies certified 
248.33  for this purpose by an individual member school district shall 
248.34  be considered debt service levies of that school district.  By 
248.35  July 1 and December 1 of each year, the school board of each 
248.36  member school district shall transfer to the intermediate school 
249.1   district an amount equal to 50 percent of the debt service levy 
249.2   certified by that member school district in the previous fiscal 
249.3   year to pay its proportionate share. 
249.4      Sec. 51.  Minnesota Statutes 1998, section 169.01, 
249.5   subdivision 6, is amended to read: 
249.6      Subd. 6.  [SCHOOL BUS.] "School bus" means a motor vehicle 
249.7   used to transport pupils to or from a school defined in section 
249.8   120A.22, or to or from school-related activities, by the school 
249.9   or a school district, or by someone under an agreement with the 
249.10  school or a school district.  A school bus does not include a 
249.11  motor vehicle transporting children to or from school for which 
249.12  parents or guardians receive direct compensation from a school 
249.13  district, a motor coach operating under charter carrier 
249.14  authority, a transit bus providing services as defined in 
249.15  section 174.22, subdivision 7, or a vehicle otherwise qualifying 
249.16  as a type III vehicle under paragraph (5), when the vehicle is 
249.17  properly registered and insured and being driven by an employee 
249.18  or agent of a school district for nonscheduled transportation.  
249.19  A school bus may be type A, type B, type C, or type D, or type 
249.20  III as follows:  
249.21     (1) A "type A school bus" is a conversion or body 
249.22  constructed upon a van-type or cutaway front section vehicle 
249.23  with a left-side driver's door, designed for carrying more than 
249.24  ten persons.  This definition includes two classifications:  
249.25  type A-I, with a gross vehicle weight rating (GVWR) over 10,000 
249.26  pounds; and type A-II, with a GVWR of 10,000 pounds or less. 
249.27     (2) A "type B school bus" is a conversion or body 
249.28  constructed and installed upon a van or front-section vehicle 
249.29  chassis, or stripped chassis, with a gross vehicle weight rating 
249.30  of more than 10,000 pounds, designed for carrying more than ten 
249.31  persons.  Part of the engine is beneath or behind the windshield 
249.32  and beside the driver's seat.  The entrance door is behind the 
249.33  front wheels. 
249.34     (3) A "type C school bus" is a body installed upon a flat 
249.35  back cowl chassis with a gross vehicle weight rating of more 
249.36  than 10,000 pounds, designed for carrying more than ten 
250.1   persons.  All of the engine is in front of the windshield and 
250.2   the entrance door is behind the front wheels.  A type C school 
250.3   bus has a maximum length of 45 feet.  
250.4      (4) A "type D school bus" is a body installed upon a 
250.5   chassis, with the engine mounted in the front, midship or rear, 
250.6   with a gross vehicle weight rating of more than 10,000 pounds, 
250.7   designed for carrying more than ten persons.  The engine may be 
250.8   behind the windshield and beside the driver's seat; it may be at 
250.9   the rear of the bus, behind the rear wheels, or midship between 
250.10  the front and rear axles.  The entrance door is ahead of the 
250.11  front wheels.  A type D school bus has a maximum length of 45 
250.12  feet.  
250.13     (5) Type III school buses and type III Head Start buses are 
250.14  restricted to passenger cars, station wagons, vans, and buses in 
250.15  service after January 1, 1999, having an original a maximum 
250.16  manufacturer's rated seating capacity of ten or fewer people, 
250.17  including the driver, and a gross vehicle weight rating of 
250.18  10,000 pounds or less.  In this subdivision, "gross vehicle 
250.19  weight rating" means the value specified by the manufacturer as 
250.20  the loaded weight of a single vehicle.  A "type III school bus" 
250.21  and "type III Head Start bus" must not be outwardly equipped and 
250.22  identified as a type A, B, C, or D school bus or type A, B, C, 
250.23  or D Head Start bus.  A van or bus converted to a seating 
250.24  capacity of ten or fewer and placed in service on or after 
250.25  August 1, 1999, must have been originally manufactured to comply 
250.26  with the passenger safety standards. 
250.27     Sec. 52.  Minnesota Statutes 1998, section 169.03, 
250.28  subdivision 6, is amended to read: 
250.29     Subd. 6.  [WORKING ON HIGHWAY.] (a) The provisions of this 
250.30  chapter shall not apply to persons, motor vehicles, and other 
250.31  equipment while actually engaged in work upon the highway, 
250.32  except as provided in paragraphs (b) and (c).  
250.33     (b) This chapter shall apply to those persons and vehicles 
250.34  when traveling to or from such work, except that persons 
250.35  operating equipment owned, rented or hired by road authorities 
250.36  shall be exempt from the width, height and length provisions of 
251.1   sections 169.80 and 169.81 and shall be exempt from the weight 
251.2   limitations of this chapter while engaged in snow or ice removal 
251.3   and while engaged in flood control operations on behalf of the 
251.4   state or a local governmental unit. 
251.5      (c) Sections 169.121 to 169.129 and 169.444 apply to 
251.6   persons while actually engaged in work upon the highway. 
251.7      Sec. 53.  Minnesota Statutes 1998, section 171.3215, 
251.8   subdivision 2, is amended to read: 
251.9      Subd. 2.  [CANCELLATION FOR DISQUALIFYING AND OTHER 
251.10  OFFENSES.] Within ten days of receiving notice under section 
251.11  631.40, subdivision 1a, or otherwise receiving notice for a 
251.12  nonresident driver, that a school bus driver has been convicted 
251.13  of a disqualifying offense, the commissioner shall permanently 
251.14  cancel the school bus driver's endorsement on the offender's 
251.15  driver's license and in the case of a nonresident, the driver's 
251.16  privilege to operate a school bus in Minnesota.  A school bus 
251.17  driver whose endorsement or privilege to operate a school bus in 
251.18  Minnesota has been permanently canceled may not apply for 
251.19  reinstatement.  Within ten days of receiving notice under 
251.20  section 631.40, subdivision 1a, or otherwise receiving notice 
251.21  for a nonresident driver, that a school bus driver has been 
251.22  convicted of a gross misdemeanor, or a violation of section 
251.23  169.121, 169.129, or a similar statute or ordinance from another 
251.24  state, and within ten days of revoking a school bus driver's 
251.25  license under section 169.123, the commissioner shall cancel the 
251.26  school bus driver's endorsement on the offender's driver's 
251.27  license or the nonresident's privilege to operate a school bus 
251.28  in Minnesota for five years.  After five years, a school bus 
251.29  driver may apply to the commissioner for reinstatement.  Even 
251.30  after five years, cancellation of a school bus driver's 
251.31  endorsement or a nonresident's privilege to operate a school bus 
251.32  in Minnesota for a violation under section 169.121, 169.123, 
251.33  169.129, or a similar statute or ordinance from another state, 
251.34  shall remain in effect until the driver provides proof of 
251.35  successful completion of an alcohol or controlled substance 
251.36  treatment program.  For a first offense, proof of completion is 
252.1   required only if treatment was ordered as part of a chemical use 
252.2   assessment.  Within ten days of receiving notice under section 
252.3   631.40, subdivision 1a, or otherwise receiving notice for a 
252.4   nonresident driver, that a school bus driver has been convicted 
252.5   of a fourth moving violation in the last three years, the 
252.6   commissioner shall cancel the school bus driver's endorsement on 
252.7   the offender's driver's license or the nonresident's privilege 
252.8   to operate a school bus in Minnesota until one year has elapsed 
252.9   since the last conviction.  A school bus driver who has no new 
252.10  convictions after one year may apply for reinstatement.  Upon 
252.11  canceling the offender's school bus driver's endorsement, the 
252.12  commissioner shall immediately notify the licensed offender of 
252.13  the cancellation in writing, by depositing in the United States 
252.14  post office a notice addressed to the licensed offender at the 
252.15  licensed offender's last known address, with postage prepaid 
252.16  thereon. 
252.17     Sec. 54.  Minnesota Statutes 1998, section 171.3215, 
252.18  subdivision 4, is amended to read: 
252.19     Subd. 4.  [WAIVER OF PERMANENT CANCELLATION.] (a) The 
252.20  commissioner of public safety or the commissioner's designee, in 
252.21  consultation with the division of driver and vehicle services, 
252.22  may waive the permanent cancellation requirement of this section 
252.23  171.3215 for a person convicted of a misdemeanor, a gross 
252.24  misdemeanor, a nonfelony violation of chapter 152, or a felony 
252.25  that is not a violent crime under section 609.1095.  
252.26     (b) After notice to the requesting school district and 
252.27  contract provider of school bus transportation, the commissioner 
252.28  may waive the permanent cancellation requirement after ten years 
252.29  have elapsed since the person was convicted of a violation of 
252.30  section 609.582, subdivision 2, 3, or 4. 
252.31     Sec. 55.  Minnesota Statutes 1998, section 181.101, is 
252.32  amended to read: 
252.33     181.101 [WAGES; HOW OFTEN PAID.] 
252.34     Every employer must pay all wages earned by an employee at 
252.35  least once every 30 31 days on a regular pay day designated in 
252.36  advance by the employer regardless of whether the employee 
253.1   requests payment at longer intervals.  Unless paid earlier, the 
253.2   wages earned during the first half of the first 30-day 31-day 
253.3   pay period become due on the first regular payday following the 
253.4   first day of work.  If wages earned are not paid, the 
253.5   commissioner of labor and industry or the commissioner's 
253.6   representative may demand payment on behalf of an employee.  If 
253.7   payment is not made within ten days of demand, the commissioner 
253.8   may charge and collect the wages earned and a penalty in the 
253.9   amount of the employee's average daily earnings at the rate 
253.10  agreed upon in the contract of employment, not exceeding 15 days 
253.11  in all, for each day beyond the ten-day limit following the 
253.12  demand.  Money collected by the commissioner must be paid to the 
253.13  employee concerned.  This subdivision section does not prevent 
253.14  an employee from prosecuting a claim for wages.  This section 
253.15  does not prevent a school district or other public school entity 
253.16  from paying any wages earned by its employees during a school 
253.17  year on regular pay days in the manner provided by an applicable 
253.18  contract or collective bargaining agreement, or a personnel 
253.19  policy adopted by the governing board.  For purposes of this 
253.20  section, "employee" includes a person who performs agricultural 
253.21  labor as defined in section 181.85, subdivision 2.  For purposes 
253.22  of this section, wages are earned on the day an employee works. 
253.23     <i>(Effective Date:  Section 55 (181.101) is effective the day</i> 
253.24  <i>following final enactment.)</i> 
253.25     Sec. 56.  Minnesota Statutes 1998, section 209.07, is 
253.26  amended by adding a subdivision to read: 
253.27     Subd. 4.  [SCHOOL DISTRICT BOARD ELECTION; SURETY BOND 
253.28  REQUIREMENTS.] If an election approving the issuance of bonds by 
253.29  a school district is contested, the contestant shall file in the 
253.30  district court a surety bond of at least $5,000 or a greater 
253.31  amount determined necessary by the court to provide security for 
253.32  costs of the contest to the school district, including any 
253.33  additional costs that may be incurred by the school district if 
253.34  the bond issue is delayed.  The court may waive the requirements 
253.35  of this subdivision to the extent it finds that there is a 
253.36  reasonable likelihood that the contestant will prevail and that 
254.1   filing the bond would impose an undue hardship.  If the surety 
254.2   bond is not filed within the time allowed by the court, the 
254.3   contest shall be dismissed with prejudice. 
254.4      Sec. 57.  Laws 1997, First Special Session chapter 4, 
254.5   article 5, section 22, is amended to read: 
254.6      Sec. 22.  [GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING 
254.7   STANDARDS.] 
254.8      Subdivision 1.  [ESTABLISHMENT.] A grant program to promote 
254.9   professional teaching standards through the national board for 
254.10  professional teaching standards for fiscal year 1998 is 
254.11  established to provide eligible teachers with the opportunity to 
254.12  receive national board for professional teaching standards 
254.13  certification and to reward teachers who have already received 
254.14  such certification. 
254.15     Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
254.16  licensed K-12 school teacher employed in a state school.  To be 
254.17  eligible for a grant, the teacher must have been employed as a 
254.18  teacher for a minimum of five school years and demonstrate 
254.19  either that the national board for professional teaching 
254.20  standards has accepted the teacher as a candidate for board 
254.21  certification or that the teacher already has received board 
254.22  certification. 
254.23     Subd. 3.  [APPLICATION PROCESS.] To obtain a grant to 
254.24  participate in the national board for professional teaching 
254.25  standards certification process or to receive a reward for 
254.26  already completing the board certification process, a teacher 
254.27  must submit an application to the commissioner of children, 
254.28  families, and learning in the form and manner the commissioner 
254.29  establishes.  The applicant must demonstrate either that the 
254.30  national board for professional teaching standards has accepted 
254.31  the teacher as a candidate for board certification or that the 
254.32  teacher already has received board certification.  The 
254.33  commissioner shall consult with the state board of teaching when 
254.34  reviewing the applications. 
254.35     Subd. 4.  [GRANT AWARDS; PROCEEDS.] (a) The commissioner 
254.36  may award matching grants of $1,000 each to for eligible 
255.1   teachers who provide a matching amount through collaboration 
255.2   with either a school district, professional organization, or 
255.3   both and are accepted as candidates for national board for 
255.4   professional teaching standards certification.  Grant recipients 
255.5   shall use the grant to participate in the certification 
255.6   process.  The grant award shall be paid to the national board 
255.7   for professional teaching standards in the teacher's name.  
255.8   Within 24 months of receiving certification, a grant recipient 
255.9   must satisfactorily complete one year of teaching service in a 
255.10  state school the certification process or repay the state the 
255.11  amount of the grant, except if the commissioner determines that 
255.12  death or disability prevents the grant recipient from providing 
255.13  the one year of teaching service. 
255.14     (b) The commissioner may award grants to eligible teachers 
255.15  who have earned national board for professional teaching 
255.16  standards certification.  The amount of each grant shall not 
255.17  exceed $1,000 and the commissioner shall establish criteria to 
255.18  determine the actual amount of each grant.  Grant recipients 
255.19  shall use the grant proceeds for educational purposes, including 
255.20  purchasing instructional materials, equipment, or supplies and 
255.21  realizing professional development opportunities.  
255.22     Subd. 5.  [REGIONAL COORDINATORS.] The state shall provide 
255.23  the equivalent of four full-time regional coordinators with two 
255.24  located in the seven-county metropolitan area and two located in 
255.25  greater Minnesota.  $25,000 per year, for the first two years 
255.26  only, shall be provided to cover expenses of the regional 
255.27  coordinators including, but not limited to, travel, meetings, 
255.28  web page maintenance, and cost related to supporting candidate's 
255.29  expenses.  After the first two years, individual school 
255.30  districts must negotiate with the exclusive representative of 
255.31  the teachers in the district for coordinator positions. 
255.32     Subd. 6.  [SALARY INCENTIVE.] A national board certified 
255.33  teacher currently teaching in a state school must receive a 
255.34  $2,000 per year salary incentive for the life of the 
255.35  certificate.  The teacher must continue to provide direct 
255.36  instruction to students in the classroom at least 65 percent of 
256.1   their time to retain the salary incentive. 
256.2      Subd. 7.  [MENTORING INCENTIVE.] (a) A national board 
256.3   certified teacher currently teaching in a state school must 
256.4   receive a $1,500 per year mentoring incentive, if the board 
256.5   certified teacher is trained and acts as a mentor for other 
256.6   national board certification candidates. 
256.7      (b) A school district must receive $5,000 per year for each 
256.8   board certified teacher, if the school district uses a national 
256.9   board certified teacher as a mentor to induct new teachers to 
256.10  provide high quality professional development for career 
256.11  teachers or to help low-achieving schools with school 
256.12  improvement plans and professional development.  The $5,000 must 
256.13  be set aside in a separate account for the specified uses. 
256.14     Sec. 58.  [ALTERNATIVE PATHWAYS FOR TEACHER PREPARATION.] 
256.15     Subdivision 1.  [ESTABLISHMENT.] A program is established 
256.16  to allow Minnesota school districts, in collaboration with 
256.17  public post-secondary institutions that offer a board of 
256.18  teaching approved teacher preparation program, to offer 
256.19  undergraduate and graduate teacher preparation opportunities.  
256.20  The program must provide teacher preparation opportunities that 
256.21  effectively address the needs of different types of schools, 
256.22  students, and teachers. 
256.23     Subd. 2.  [ELIGIBILITY; PROGRAM USES; EMPLOYMENT 
256.24  TERMS.] (a) An applicant under this program must be a school 
256.25  district.  The school district must collaborate with a teacher 
256.26  preparation program approved by the board of teaching and an 
256.27  exclusive representative of the teachers in the district.  The 
256.28  program must be used to assist in improving teacher preparation 
256.29  by placing teacher education students in preschool, elementary, 
256.30  and secondary classrooms or other education settings. 
256.31     (b) Each school district participating in this program may 
256.32  select the teacher preparation model that best promotes 
256.33  understanding the needs of each educational system or 
256.34  institution.  For example: 
256.35     (1) a public school educator may teach courses that assist 
256.36  in preparing future educators or take professional development 
257.1   courses; or 
257.2      (2) a post-secondary teacher may teach courses at the 
257.3   school district or mentor student teachers. 
257.4      Participation is not limited to one school or institution 
257.5   and may involve other participants, including parent/community 
257.6   groups, teacher organizations, and business groups.  Contracting 
257.7   schools and institutions are encouraged to develop program 
257.8   components that engage nontraditional teacher preparation 
257.9   students. 
257.10     (c) Temporary placements made under this program must not 
257.11  have a negative effect on participants' salaries, seniority, or 
257.12  other benefits.  Notwithstanding Minnesota Statutes, sections 
257.13  122A.16 and 123B.02, subdivision 14, a member of the staff of a 
257.14  post-secondary institution may teach in a preschool, elementary 
257.15  school, secondary school, or other education settings, or 
257.16  perform a service agreed upon under this section for which a 
257.17  license would otherwise be required without holding the 
257.18  applicable license.  In addition, a licensed educator employed 
257.19  by a school district may teach or perform a service, agreed upon 
257.20  under this section, at a post-secondary institution without 
257.21  meeting the applicable qualifications of the post-secondary 
257.22  institution.  A district is not subject to Minnesota Statutes, 
257.23  section 127A.43, as a result of entering into an agreement 
257.24  according to this section that enables a post-secondary educator 
257.25  to teach or provide services in the district.  All arrangements 
257.26  and details regarding an exchange must be mutually agreed to by 
257.27  each participating school district and post-secondary 
257.28  institution before implementing the exchange. 
257.29     (d) An educator who held a temporary position or an 
257.30  exchanged position under this section must be continued in or 
257.31  restored to the position previously held, or to a position of 
257.32  like seniority, status, and pay upon return.  Retirement 
257.33  benefits under an employer-sponsored pension or retirement plan 
257.34  must not be reduced because of time spent on an exchange or 
257.35  temporary position under this section. 
257.36     (e) An educator who is continued in or restored to a 
258.1   position under paragraph (d): 
258.2      (1) must be continued or restored without loss of 
258.3   seniority; and 
258.4      (2) may participate in insurance or other benefits offered 
258.5   by the employer under its established rules and practices. 
258.6      Subd. 3.  [APPLICATION PROCESS.] To participate in this 
258.7   program, a school district must submit an application to the 
258.8   commissioner of children, families, and learning in the form and 
258.9   manner established by the commissioner.  The application must 
258.10  describe how the applicant will improve teacher education by 
258.11  providing undergraduate or graduate teacher preparation 
258.12  opportunities in order to effectively address the needs of 
258.13  different types of schools, students, and teachers, and how the 
258.14  applicant will use technology to implement the program.  The 
258.15  commissioner may require additional information from an 
258.16  applicant. 
258.17     Subd. 4.  [PROGRAM PARTICIPANTS; MONETARY AWARDS.] (a) When 
258.18  selecting program participants, the commissioner must determine: 
258.19     (1) whether an applicant has met the requirements of this 
258.20  section; 
258.21     (2) whether the location of a program is particularly 
258.22  suitable for realizing the purpose of this section; 
258.23     (3) the number of teacher candidates, teachers, and 
258.24  students who would participate in the program; 
258.25     (4) the ability of the applicant to demonstrate the 
258.26  positive effect of the program on students enrolled in a 
258.27  participating school district by using standardized test scores, 
258.28  the rate at which students pass the state's reading, math, and 
258.29  writing basic skills test, or other valid and reliable 
258.30  assessment measures; 
258.31     (5) whether public post-secondary institutions with board 
258.32  of teaching approved teacher preparation programs and other 
258.33  organizations representing parents' business interests and 
258.34  community interests are integral participants in the proposed 
258.35  program; 
258.36     (6) whether the program addresses the shortage of teachers 
259.1   in subject areas identified by the commissioner of children, 
259.2   families, and learning; and 
259.3      (7) the ability of the applicant to provide information 
259.4   about the program to interested school districts and 
259.5   post-secondary institutions. 
259.6      (b) The commissioner may select up to five applicants to 
259.7   participate in this program for the 1999-2000 school year and 
259.8   later.  Participants must be located throughout the state.  The 
259.9   commissioner must provide one-time start-up costs of up to 
259.10  $20,000 per participating site. 
259.11     Subd. 5.  [POST-SECONDARY INSTITUTION FUNDING.] A 
259.12  post-secondary institution participating in this program as a 
259.13  contracting party must provide the instructional costs of 
259.14  teacher education students and may charge the students the costs 
259.15  of tuition. 
259.16     Subd. 6.  [EVALUATION.] The commissioner must contract with 
259.17  an independent qualified expert to evaluate the impact of the 
259.18  program on teacher efficacy and student performance and present 
259.19  a report to the commissioner and the education committees of the 
259.20  legislature by February 15, 2005. 
259.21     Sec. 59.  [REALLOCATION OF EDUCATION RESOURCES.] 
259.22     The Minnesota state colleges and universities and the 
259.23  University of Minnesota must set aside a portion of their higher 
259.24  education teacher education resources for teacher preparation 
259.25  programs that are committed to meeting the projected teacher 
259.26  shortages in areas identified by the department of children, 
259.27  families, and learning. 
259.28     Sec. 60.  [BOARD OF TEACHING.] 
259.29     The board of teaching must communicate with school 
259.30  districts, including district human resources personnel, on the 
259.31  procedures available to districts for expediting the hiring of 
259.32  substitute teachers. 
259.33     Sec. 61.  [SCHOOL COUNSELOR ASSESSMENT.] 
259.34     The department of children, families, and learning, in 
259.35  consultation with school districts, shall determine methods of 
259.36  meeting adequate local district needs for licensed school 
260.1   counselors.  The department shall consider recommended ratios, 
260.2   the costs for meeting these ratios, and alternative strategies 
260.3   for collaboration to provide counseling services to pupils, 
260.4   especially in small districts. 
260.5      Sec. 62.  [RULES AND POLICIES.] 
260.6      The revisor of statutes shall recodify state high school 
260.7   league eligibility rules.  The revisor shall work with the 
260.8   league to clarify and eliminate discrepancies and 
260.9   inconsistencies in league rules, policies, and bylaws affecting 
260.10  student eligibility.  The league shall pay the revisor for the 
260.11  cost of this work, as determined by the revisor. 
260.12     Sec. 63.  [HIGH SCHOOL LEAGUE; TRANSITION.] 
260.13     The terms of persons who are members appointed by the 
260.14  governor on the effective date of section 42 are extended until 
260.15  July 31 of the year in which the terms are scheduled to expire. 
260.16     Sec. 64.  [ALTERNATIVE CALENDAR EVALUATION PROJECTS.] 
260.17     Subdivision 1.  [GRANT PROGRAM.] The commissioner of 
260.18  children, families, and learning shall establish a grant program 
260.19  for grants to school districts to evaluate alternative calendar 
260.20  projects, including extended day, week, and year programs.  
260.21  Districts may contract with a higher education institution to 
260.22  conduct more comprehensive longitudinal research on student 
260.23  achievement.  The applicants shall evaluate the following: 
260.24     (1) increased student achievement and other related 
260.25  outcomes, including attitudes, skills, and behavior; 
260.26     (2) quality of instructional time for the regular school 
260.27  day and the extended learning component; 
260.28     (3) quantity of instructional time and effect on student 
260.29  outcomes; and 
260.30     (4) use of technology to enhance student achievement in an 
260.31  extended learning environment. 
260.32     Subd. 2.  [APPLICATION PROCESS.] To obtain a grant, an 
260.33  applicant must submit an application to the commissioner in the 
260.34  form and manner established by the commissioner.  The 
260.35  application must describe how the applicant will evaluate 
260.36  alternative calendar projects as described in subdivision 1. 
261.1      Subd. 3.  [GRANT AWARDS.] The commissioner may award grants 
261.2   to applicants who meet the requirements of this section.  The 
261.3   commissioner must base the amount of the grant on the number of 
261.4   children expected to participate in the program.  Districts 
261.5   receiving grants shall report to the commissioner of children, 
261.6   families, and learning, and to the education committees of the 
261.7   legislature by February 1, 2001, on the results of the 
261.8   alternative calendar study. 
261.9      Sec. 65.  [MODEL STATE POLICY ON STUDENT RECORDS.] 
261.10     Subdivision 1.  [COMMISSIONER OF ADMINISTRATION.] By 
261.11  September 1, 1999, the commissioner of administration shall 
261.12  compile and make available a model policy that accurately 
261.13  reflects state and federal data regulations regarding student 
261.14  records and other data used by government agencies who serve 
261.15  school-aged children.  The model policy shall include procedures 
261.16  and other guidelines detailing allowable use and transfer of 
261.17  data according to state and federal law. 
261.18     Subd. 2.  [RECOMMENDATIONS TO THE LEGISLATURE.] By January 
261.19  15, 2000, the commissioner, in consultation with representatives 
261.20  from federal agencies, state agencies, county governments, 
261.21  school districts, cities, and parents who have an interest in 
261.22  student records and other applicable data, shall make 
261.23  recommendations to the legislature regarding necessary 
261.24  clarifications of state law and any enforcement mechanisms 
261.25  identified as essential for the proper sharing of data. 
261.26     Sec. 66.  [SCHOOL YEAR START DATE.] 
261.27     Subdivision 1.  [GOODHUE.] Notwithstanding Minnesota 
261.28  Statutes, section 120A.40, and Laws 1997, First Special Session 
261.29  chapter 4, article 7, section 49, subdivision 1, for the 
261.30  1999-2000 school year independent school district No. 253, 
261.31  Goodhue, may begin the school year on August 30, 1999. 
261.32     Subd. 2.  [MILACA.] Notwithstanding Minnesota Statutes 
261.33  1996, section 126.12, subdivision 1, and Laws 1997, First 
261.34  Special Session chapter 4, article 7, section 49, subdivision 1, 
261.35  for the 1998-1999 school year only, independent school district 
261.36  No. 912, Milaca, may begin the school year on August 24, 1998. 
262.1      Subd. 3.  [WORTHINGTON.] Notwithstanding Minnesota 
262.2   Statutes, section 120A.40, and Laws 1997, First Special Session 
262.3   chapter 4, article 7, section 49, subdivision 1, for the 
262.4   1999-2000 school year, independent school district No. 518, 
262.5   Worthington, may begin the school year on August 23, 1999. 
262.6      <i>(Effective Date:  Section 66, subdivision 2 (Milaca) is</i> 
262.7   <i>effective retroactive to July 1, 1998.)</i> 
262.8      Sec. 67.  [FUND TRANSFERS.] 
262.9      Subdivision 1.  [WHITE BEAR LAKE.] Notwithstanding 
262.10  Minnesota Statutes, sections 123B.79, 123B.80, and 475.61, 
262.11  subdivision 4, on June 30, 1999, independent school district No. 
262.12  624, White Bear Lake, a district recently out of statutory 
262.13  operating debt, may permanently transfer up to $650,000 from its 
262.14  debt redemption fund to its general fund without making a levy 
262.15  reduction. 
262.16     Subd. 2.  [MONTICELLO.] Notwithstanding Minnesota Statutes, 
262.17  sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 
262.18  30, 1999, independent school district No. 882, Monticello, may 
262.19  permanently transfer up to $650,000 from its debt redemption 
262.20  fund to its general fund. 
262.21     Subd. 3.  [GRAND MEADOW.] Notwithstanding Minnesota 
262.22  Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
262.23  on June 30, 1999, independent school district No. 495, Grand 
262.24  Meadow, may permanently transfer up to $300,000 from its 
262.25  disabled access account in the general fund to its capital 
262.26  fund.  This transfer is contingent upon the school district's 
262.27  successful construction of a new kindergarten through grade 12 
262.28  school. 
262.29     Subd. 4.  [FARIBAULT.] Notwithstanding Minnesota Statutes, 
262.30  section 123B.79, or other law, on or before June 30, 2000, 
262.31  independent school district No. 656, Faribault, may transfer an 
262.32  amount equal to the sale of the school district's excess 
262.33  property from its capital operating account to the undesignated 
262.34  general fund, not to exceed $1,000,000.  This transfer shall be 
262.35  used for the purposes of defraying the district's operating debt 
262.36  and shall not be subject to salary negotiations. 
263.1      Subd. 5.  [WESTONKA.] Notwithstanding Minnesota Statutes, 
263.2   sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 
263.3   30, 1999, independent school district No. 277, Westonka, may 
263.4   permanently transfer up to $235,000 from its debt redemption 
263.5   fund to its general fund without making a levy reduction to help 
263.6   the school district out of statutory operating debt. 
263.7      <i>(Effective Date:  Section 67 (Fund Transfers) is effective</i> 
263.8   <i>the day following final enactment.)</i> 
263.9      Sec. 68.  [STATE BOARD OF EDUCATION CHANGED TO COMMISSIONER 
263.10  OF CHILDREN, FAMILIES, AND LEARNING; OTHER CHANGES.] 
263.11     The provisions of Laws 1998, chapter 398, article 5, 
263.12  section 55, and related sections apply except as provided under 
263.13  this article. 
263.14     <i>(Effective Date:  Section 68 (State Board) is effective</i> 
263.15  <i>December 31, 1999.)</i> 
263.16     Sec. 69.  [APPROPRIATIONS.] 
263.17     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
263.18  LEARNING.] The following sums are appropriated from the general 
263.19  fund to the department of children, families, and learning in 
263.20  the fiscal years indicated. 
263.21     Subd. 2.  [URBAN TEACHER PREPARATION PROGRAM.] For a grant 
263.22  to the Minnesota state colleges and universities for an urban 
263.23  teacher preparation program at Metropolitan State University: 
263.24       $1,800,000     .....     2000 
263.25     This appropriation is available until June 30, 2001. 
263.26     Subd. 3.  [ALTERNATIVE PATHWAYS FOR TEACHER 
263.27  PREPARATION.] For providing program participants under section 
263.28  58 with start-up costs:  
263.29       $750,000       .....     2000
263.30     This appropriation is available until June 30, 2001. 
263.31     The commissioner shall consider a proposal from independent 
263.32  school district No. 138, North Branch. 
263.33     Subd. 4.  [MINNESOTA NEW TEACHER PROJECT.] For the state 
263.34  portion of the Minnesota new teacher project: 
263.35       $1,000,000     .....     2000
263.36       $1,000,000     .....     2001
264.1      Any balance in the first year does not cancel but is 
264.2   available in the second year. 
264.3      Districts participating in the new teacher project may 
264.4   consider programs offered by Hamline university, the Minnesota 
264.5   academy of educators, and other first-year teacher induction 
264.6   programs. 
264.7      Subd. 5.  [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For 
264.8   collaborative urban educator programs providing alternative 
264.9   pathways to licensure: 
264.10         $900,000     .....     2000
264.11         $900,000     .....     2001
264.12     $400,000 each year is for the Collaborative Urban Educators 
264.13  Program at St. Thomas University; and $500,000 each year is for 
264.14  the South East Asia Teachers Program at Concordia College.  
264.15     Any balance in the first year does not cancel but is 
264.16  available in the second year. 
264.17     Subd. 6.  [PROFESSIONAL TEACHING STANDARDS.] For grants to 
264.18  promote and reward high professional teaching standards: 
264.19         $800,000     .....     2000
264.20     This appropriation is available until June 30, 2001.  Of 
264.21  this amount, $150,000 is for grants to teachers applying for 
264.22  certification, $190,000 is for regional coordinators, $220,000 
264.23  is for salary incentives, $70,000 is for mentor incentives, and 
264.24  $170,000 is for school district incentives for using national 
264.25  board certified teachers as a mentor. 
264.26     All school district incentives from this appropriation 
264.27  shall be set aside in a separate fund for the induction of new 
264.28  teachers, high quality professional development, school 
264.29  improvement plans, and professional development for staff in 
264.30  low-achieving schools. 
264.31     Subd. 7.  [SCHOOL ADMINISTRATORS RECRUITMENT PROGRAM.] For 
264.32  the Minnesota service cooperatives to plan and establish a 
264.33  school administrators recruitment program to identify and 
264.34  develop potential administrators within Minnesota school 
264.35  districts and collaborate with post-secondary institutions to 
264.36  deliver administrative preparation programs in a nontraditional 
265.1   manner to these potential administrators and alternative 
265.2   pathways to licensure: 
265.3          $100,000     .....     2000 
265.4          $100,000     .....     2001 
265.5      Subd. 8.  [PILLAGER REIMBURSEMENT.] For independent school 
265.6   district No. 116, Pillager, for reimbursement of extraordinary 
265.7   legal expenses due to a lawsuit with statewide implications: 
265.8          $325,000     .....     2000 
265.9      Subd. 9.  [PARTNERS FOR QUALITY SCHOOL IMPROVEMENT.] For 
265.10  the school improvement pilot training program established in 
265.11  Laws 1997, First Special Session chapter 4, article 7, section 
265.12  47: 
265.13         $500,000     .....     2000 
265.14     This appropriation is available until June 30, 2001.  
265.15     Subd. 10.  [ALTERNATIVE CALENDAR EVALUATION PROJECTS.] For 
265.16  alternative calendar evaluation projects: 
265.17         $690,000     .....     2000 
265.18         $690,000     .....     2001 
265.19     $140,000 each year is for a grant to special school 
265.20  district No. 6, South St. Paul, for the operation of an extended 
265.21  day kindergarten program; $75,000 each year is for a grant to 
265.22  independent school district No. 877, Buffalo; and $250,000 each 
265.23  year is for a grant to independent school district No. 624, 
265.24  White Bear Lake. 
265.25     Any balance in the first year does not cancel but is 
265.26  available in the second year. 
265.27     Subd. 11.  [TEACHER LICENSURE PROGRAM TO INCREASE THE 
265.28  NUMBER OF METROPOLITAN AREA TEACHERS OF STUDENTS WITH EMOTIONAL 
265.29  AND BEHAVIORAL DISORDERS.] 
265.30     For implementing a metropolitan area teacher licensure 
265.31  program to enable educational assistants who work with students 
265.32  with emotional and behavioral disorders to enroll in a 
265.33  collaborative and inclusive licensure program for teachers of 
265.34  students with emotional and behavioral disorders that offers the 
265.35  educational assistants the academic support and financial 
265.36  assistance they need to obtain a teaching license in emotional 
266.1   and behavioral disorders: 
266.2          $125,000     .....     2000 
266.3          $125,000     .....     2001 
266.4      This appropriation is available until June 30, 2001. 
266.5      <i>(Effective Date:  Section 69, subdivision 11 (Teacher</i> 
266.6   <i>Licensure Appropriation) is effective July 1, 1999, and is</i> 
266.7   <i>contingent upon proposed Minnesota Rules, part 8710.5600, as</i> 
266.8   <i>published on November 2, 1998, at 23 S.R. 1030, being adopted</i> 
266.9   <i>and the program being certified.  If the proposed rule is</i> 
266.10  <i>adopted and certified after July 1, 1999, section 69,</i> 
266.11  <i>subdivision 11, is effective retroactive to July 1, 1999.)</i> 
266.12     Sec. 70.  [REPEALER.] 
266.13     (a) Minnesota Statutes 1998, section 120A.41, is repealed 
266.14  effective retroactive to March 1, 1999, for the 1999-2000 school 
266.15  year. 
266.16     (b) Minnesota Statutes 1998, sections 127A.42, subdivision 
266.17  8; 127A.60, subdivisions 2, 3, and 4; 127A.61; 127A.62, 
266.18  subdivision 2; 127A.64; and 127A.66, subdivision 1, are repealed 
266.19  effective December 31, 1999. 
266.20     Sec. 71.  [EFFECTIVE DATES.] 
266.21     When preparing the prekindergarten through grade 12 
266.22  education conference committee report for adoption by the 
266.23  legislature, the revisor shall combine all effective date 
266.24  notations in this article into this effective date section. 
266.25                             ARTICLE 8 
266.26                             LIBRARIES 
266.27     Section 1.  Laws 1997, First Special Session chapter 4, 
266.28  article 8, section 4, is amended to read: 
266.29     Sec. 4.  [LIBRARY PILOT PROJECT.] 
266.30     Subdivision 1.  [ESTABLISHMENT.] Notwithstanding law to the 
266.31  contrary and subject to approvals in subdivision 2, a public 
266.32  library may operate as a pilot library project jointly with the 
266.33  school library at Nashwauk-Keewatin high school, located in the 
266.34  city of Nashwauk.  The public library is established to serve 
266.35  persons within the boundaries of independent school district No. 
266.36  319, except the city of Keewatin. 
267.1      Subd. 2.  [APPROVALS.] Operation of the public library is 
267.2   contingent upon a resolution approved by the governing bodies of 
267.3   cities, towns, and unorganized townships within the geographical 
267.4   boundaries of independent school district No. 319, except for 
267.5   the city of Keewatin, entering into a joint powers agreement 
267.6   under Minnesota Statutes 1998, section 471.59, to accomplish the 
267.7   purpose of this section.  The joint powers agreement must 
267.8   provide for continuing the library project if one party to the 
267.9   agreement withdraws from the agreement.  For the purposes of 
267.10  this subdivision, the Itasca county board is designated as the 
267.11  governing body for the unorganized townships. 
267.12     Subd. 3.  [BOARD; APPOINTMENTS.] The resolution joint 
267.13  powers agreement in subdivision 2 shall provide for a library 
267.14  board of five members as follows:  two members appointed by the 
267.15  school board of independent school district No. 319, one member 
267.16  appointed by each town board located within independent school 
267.17  district No. 319 boundaries, one member appointed by the council 
267.18  of the city of Nashwauk, and one member appointed by the Itasca 
267.19  county board to represent the unorganized towns within the 
267.20  school district territory. 
267.21     Subd. 4.  [BOARD TERMS; COMPENSATION.] The library board 
267.22  members shall serve for the term of the pilot program library 
267.23  project.  An appointing authority may remove for misconduct or 
267.24  neglect any member it has appointed to the board and may replace 
267.25  that member by appointment.  Board members shall receive no 
267.26  compensation for their services but may be reimbursed for actual 
267.27  and necessary travel expenses incurred in the discharge of 
267.28  library board duties and activities. 
267.29     Subd. 5.  [FUNDING.] For taxes payable in 1998 and 1999 
267.30  only, The library board may levy a tax in an amount up to 
267.31  $25,000 annually on property located within the boundaries of 
267.32  independent school district No. 319, except the city of 
267.33  Keewatin.  The Itasca county auditor shall collect the tax and 
267.34  distribute it to the library board.  The money may be used for 
267.35  library staff and for the purchase of library materials, 
267.36  including computer software.  The levy must also fund the amount 
268.1   necessary to receive bookmobile services from the Arrowhead 
268.2   regional library system.  For taxes payable in 1998 and 1999 
268.3   only, The county may not levy under Minnesota Statutes, section 
268.4   134.07, for the areas described in this section. 
268.5      Subd. 6.  [BUILDING.] The school district shall provide the 
268.6   physical space and costs associated with operating the library 
268.7   including, but not limited to, heat, light, telephone service, 
268.8   and maintenance. 
268.9      Subd. 7.  [ORGANIZATION.] Immediately after appointment, 
268.10  the library board shall organize by electing one of its number 
268.11  as president and one as secretary, and it may appoint other 
268.12  officers it finds necessary. 
268.13     Subd. 8.  [DUTIES.] The library board shall adopt bylaws 
268.14  and regulations for the library and for the conduct of its 
268.15  business as may be expedient and conformable to law.  It shall 
268.16  have exclusive control of the expenditure of all money collected 
268.17  for it.  The library board shall appoint a qualified library 
268.18  director and other staff, establish the compensation of 
268.19  employees, and remove any of them for cause.  The library board 
268.20  may contract with the school board, the regional library board, 
268.21  or the city in which the library is located to provide 
268.22  personnel, fiscal, or administrative services.  The contract 
268.23  shall state the personnel, fiscal, and administrative services 
268.24  and payments to be provided by each party. 
268.25     Subd. 9.  [CRITERIA.] The library shall meet all 
268.26  requirements in statutes and rules applicable to public 
268.27  libraries and school media centers.  A media supervisor licensed 
268.28  by the board of teaching may be the director of the library.  
268.29  Public parking, restrooms, drinking water, and other necessities 
268.30  shall be easily accessible to library patrons. 
268.31     Subd. 10.  [REPORT.] The library board shall report to the 
268.32  department of children, families, and learning by February 1, 
268.33  1999, about the costs of providing the library service and the 
268.34  number of patrons served. 
268.35     Subd. 11.  [EXPIRATION.] This section expires January 31, 
268.36  2000. 
269.1      Sec. 2.  Laws 1997, First Special Session chapter 4, 
269.2   article 9, section 7, subdivision 2, is amended to read: 
269.3      Subd. 2.  [APPLICATION; ELIGIBILITY.] The commissioner of 
269.4   children, families, and learning shall establish a process and 
269.5   application forms for library sites to apply for grant funds.  
269.6   Libraries must describe how they will cooperate with schools.  
269.7   An applicant must submit a technology plan with the 
269.8   application.  Eligible applicants must, at a minimum, describe 
269.9   how the proposed project is consistent with the technology plan; 
269.10  describe how it ensures interoperability of hardware, software, 
269.11  and telecommunication and meets existing Minnesota technical 
269.12  standards appropriate to the project; identify the specific site 
269.13  needs that the project will address; define the project's 
269.14  expected outcomes; and provide the source, type, and amounts of 
269.15  all matching funds.  To be eligible for a site-based technology 
269.16  learning grant, a library site must: 
269.17     (1) be a school library, a public library, or a partnership 
269.18  of public and school libraries or be a publicly funded or 
269.19  nonprofit library in partnership with school libraries, public 
269.20  libraries, or public library systems; 
269.21     (2) be a member of a regional multicounty, multitype 
269.22  library cooperation system; 
269.23     (3) have each dollar of grant money matched by at least $1 
269.24  of library site money, including in-kind contributions; 
269.25     (3) (4) agree to disseminate and share information about 
269.26  its project; 
269.27     (4) (5) provide a benefit to the greater community; and 
269.28     (5) (6) maintain any ongoing costs of support for the 
269.29  technology project after the initial funding under the grant 
269.30  program. 
269.31     Sec. 3.  Laws 1998, chapter 398, article 9, section 7, is 
269.32  amended to read: 
269.33     Sec. 7.  [DATABASE ACCESS PROGRAM FOR PUBLIC LIBRARIES AND 
269.34  SCHOOL MEDIA CENTERS.] 
269.35     Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
269.36  children, families, and learning and the director of the higher 
270.1   education services office shall establish a program to provide 
270.2   statewide licenses to commercial electronic databases of 
270.3   periodicals, encyclopedias, and associated reference materials 
270.4   for school media centers and, public libraries, state government 
270.5   agency libraries, and public or private college or university 
270.6   libraries.  The commissioner, in consultation with Minitex and 
270.7   in cooperation with the Library Planning Task Force, shall 
270.8   solicit proposals for access licenses to commercial vendors of 
270.9   the databases.  Responses to those proposals shall be evaluated 
270.10  by staff of the office of library development and services in 
270.11  the department of children, families, and learning, Minitex 
270.12  staff, and a representative panel of librarians and school media 
270.13  specialists and public librarians. 
270.14     Subd. 2.  [ELIGIBILITY.] Access to the selected databases 
270.15  shall be made available to a school or school district that is a 
270.16  member of a multicounty, multitype library system as defined in 
270.17  Minnesota Statutes, section 134.001, subdivision 6, or a public 
270.18  library as defined in Minnesota Statutes, section 134.001, 
270.19  subdivision 2, that is a member of a multicounty, multitype 
270.20  library system school media center or library that is eligible 
270.21  to participate in MnLink.  With appropriate authentication any 
270.22  user of an eligible library a school media center or library 
270.23  that is eligible to participate in MnLink may have access to the 
270.24  databases from a remote site. 
270.25     Subd. 3.  [RESOURCE GRANTS.] Graduation rule resource 
270.26  grants are available for the purposes of this section. 
270.27     Sec. 4.  [APPROPRIATIONS.] 
270.28     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
270.29  LEARNING.] The sums indicated in this section are appropriated 
270.30  from the general fund to the department of children, families, 
270.31  and learning for the fiscal years designated.  
270.32     Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
270.33  according to Minnesota Statutes, sections 134.32 to 134.35: 
270.34       $8,495,000      .....     2000 
270.35       $8,570,000      .....     2001 
270.36     The 2000 appropriation includes $782,000 for 1999 and 
271.1   $7,713,000 for 2000.  
271.2      The 2001 appropriation includes $857,000 for 2000 and 
271.3   $7,713,000 for 2001.  
271.4      Subd. 3.  [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 
271.5   grants according to Minnesota Statutes, sections 134.353 and 
271.6   134.354, to multicounty, multitype library systems: 
271.7        $903,000       .....     2000 
271.8        $903,000       .....     2001 
271.9      The 2000 appropriation includes $90,000 for 1999 and 
271.10  $813,000 for 2000.  
271.11     The 2001 appropriation includes $90,000 for 2000 and 
271.12  $813,000 for 2001. 
271.13     Subd. 4.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
271.14  grants to regional public library systems under Minnesota 
271.15  Statutes, section 125B.20, subdivision 3: 
271.16       $1,700,000     .....     2000 
271.17       $1,700,000     .....     2001 
271.18     Any balance in the first year does not cancel but is 
271.19  available in the second year. 
271.20     Subd. 5.  [LIBRARY FOR THE BLIND.] For compact shelving, 
271.21  technology, and staffing for the Minnesota library for the blind 
271.22  and physically handicapped: 
271.23       $550,000     .....     2000 
271.24     Subd. 6.  [DATABASE ACCESS PROGRAM.] For the database 
271.25  access program for public libraries and school media centers 
271.26  under section 3: 
271.27         $350,000     .....     2000 
271.28         $350,000     .....     2001 
271.29                             ARTICLE 9 
271.30                           STATE AGENCIES 
271.31     Section 1.  Minnesota Statutes 1998, section 125A.64, is 
271.32  amended by adding a subdivision to read: 
271.33     Subd. 6.  [EXEMPTION TO LABOR DAY SCHOOL START 
271.34  RESTRICTION.] Notwithstanding Minnesota Statutes, section 
271.35  120A.40, subdivision 1, the board of the Minnesota state 
271.36  academies for the deaf and blind may begin the school year any 
272.1   day prior to September 1. 
272.2      Sec. 2.  Minnesota Statutes 1998, section 129C.10, is 
272.3   amended by adding a subdivision to read: 
272.4      Subd. 8.  [EXEMPTION TO LABOR DAY SCHOOL START 
272.5   RESTRICTION.] Notwithstanding Minnesota Statutes, section 
272.6   120A.40, subdivision 1, the Lola and Rudy Perpich Minnesota 
272.7   center for arts education may begin the school year any day 
272.8   prior to September 1. 
272.9      Sec. 3.  Minnesota Statutes 1998, section 626.556, is 
272.10  amended by adding a subdivision to read: 
272.11     Subd. 3b.  [AGENCY RESPONSIBLE FOR ASSESSING OR 
272.12  INVESTIGATING REPORTS OF MALTREATMENT.] The department of 
272.13  children, families, and learning is the agency responsible for 
272.14  assessing or investigating allegations of child maltreatment in 
272.15  schools as defined in sections 120A.05, subdivisions 9, 11, and 
272.16  13; and 124D.10. 
272.17     Sec. 4.  Minnesota Statutes 1998, section 626.556, 
272.18  subdivision 10b, is amended to read: 
272.19     Subd. 10b.  [DUTIES OF COMMISSIONER; NEGLECT OR ABUSE IN 
272.20  FACILITY.] (a) This section applies to the commissioner of 
272.21  children, families, and learning.  The commissioner of the 
272.22  agency responsible for assessing or investigating the report 
272.23  shall immediately investigate if the report alleges that: 
272.24     (1) a child who is in the care of a facility as defined in 
272.25  subdivision 2 is neglected, physically abused, or sexually 
272.26  abused by an individual in that facility, or has been so 
272.27  neglected or abused by an individual in that facility within the 
272.28  three years preceding the report; or 
272.29     (2) a child was neglected, physically abused, or sexually 
272.30  abused by an individual in a facility defined in subdivision 2, 
272.31  while in the care of that facility within the three years 
272.32  preceding the report.  
272.33     The commissioner shall arrange for the transmittal to the 
272.34  commissioner of reports received by local agencies and may 
272.35  delegate to a local welfare agency the duty to investigate 
272.36  reports.  In conducting an investigation under this section, the 
273.1   commissioner has the powers and duties specified for local 
273.2   welfare agencies under this section.  The commissioner or local 
273.3   welfare agency may interview any children who are or have been 
273.4   in the care of a facility under investigation and their parents, 
273.5   guardians, or legal custodians. 
273.6      (b) Prior to any interview, the commissioner or local 
273.7   welfare agency shall notify the parent, guardian, or legal 
273.8   custodian of a child who will be interviewed in the manner 
273.9   provided for in subdivision 10d, paragraph (a).  If reasonable 
273.10  efforts to reach the parent, guardian, or legal custodian of a 
273.11  child in an out-of-home placement have failed, the child may be 
273.12  interviewed if there is reason to believe the interview is 
273.13  necessary to protect the child or other children in the 
273.14  facility.  The commissioner or local agency must provide the 
273.15  information required in this subdivision to the parent, 
273.16  guardian, or legal custodian of a child interviewed without 
273.17  parental notification as soon as possible after the interview.  
273.18  When the investigation is completed, any parent, guardian, or 
273.19  legal custodian notified under this subdivision shall receive 
273.20  the written memorandum provided for in subdivision 10d, 
273.21  paragraph (c). 
273.22     (c) In conducting investigations under this subdivision the 
273.23  commissioner or local welfare agency shall obtain access to 
273.24  information consistent with subdivision 10, paragraphs (h), (i), 
273.25  and (j). 
273.26     (d) Except for foster care and family child care, the 
273.27  commissioner has the primary responsibility for the 
273.28  investigations and notifications required under subdivisions 10d 
273.29  and 10f for reports that allege maltreatment related to the care 
273.30  provided by or in facilities licensed by the commissioner.  The 
273.31  commissioner may request assistance from the local social 
273.32  service agency. 
273.33     Sec. 5.  [REVISOR INSTRUCTION.] 
273.34     In the next and subsequent editions of Minnesota Statutes 
273.35  and Minnesota Rules, the revisor shall change all references of 
273.36  the "Lola and Rudy Perpich Minnesota center for arts education" 
274.1   to the "Perpich center for arts education." 
274.2      Sec. 6.  [TRANSFER OF PROGRAMS.] 
274.3      The powers and duties of the department of children, 
274.4   families, and learning with respect to drug policy and violence 
274.5   prevention under Minnesota Statutes 1998, sections 119A.25, 
274.6   119A.26, 119A.27, 119A.28, 119A.29, 119A.31, 119A.32, 119A.33, 
274.7   and 119A.34, are transferred to the department of public safety 
274.8   under Minnesota Statutes, section 15.039. 
274.9      Sec. 7.  [APPROPRIATIONS; DEPARTMENT OF CHILDREN, FAMILIES, 
274.10  AND LEARNING.] 
274.11     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
274.12  LEARNING.] The sums indicated in this section are appropriated 
274.13  from the general fund unless otherwise indicated to the 
274.14  department of children, families, and learning for the fiscal 
274.15  years designated. 
274.16     Subd. 2.  [TEACHING AND LEARNING PROGRAM.] (a) For the 
274.17  teaching and learning program in the department of children, 
274.18  families, and learning: 
274.19       $9,979,000     .....     2000 
274.20       $9,926,000     .....     2001 
274.21     (b) Any balance the first year does not cancel but is 
274.22  available in the second year. 
274.23     (c) $21,000 each year is from the trunk highway fund. 
274.24     (d) $621,000 in 2000 and $629,000 in 2001 is for the 
274.25  academic excellence foundation. 
274.26     (e) $673,000 in 2000 and $678,000 in 2001 is for the board 
274.27  of teaching. 
274.28     (f) Notwithstanding Minnesota Statutes, section 15.53, 
274.29  subdivision 2, the commissioner of children, families, and 
274.30  learning may contract with a school district for a period no 
274.31  longer than five consecutive years to work in the development or 
274.32  implementation of the graduation rule.  The commissioner may 
274.33  contract for services and expertise as necessary.  The contracts 
274.34  are not subject to Minnesota Statutes, section 16B.06. 
274.35     Subd. 3.  [LIFEWORK DEVELOPMENT PROGRAM.] For the lifework 
274.36  development program in the department of children, families, and 
275.1   learning: 
275.2        $1,162,000     .....     2000 
275.3        $1,183,000     .....     2001 
275.4      Any balance the first year does not cancel but is available 
275.5   in the second year. 
275.6      Subd. 4.  [MANAGEMENT AND SUPPORT SERVICES PROGRAM.] (a) 
275.7   For the management and support services program in the 
275.8   department of children, families, and learning: 
275.9       $16,987,000     .....     2000 
275.10      $14,421,000     .....     2001 
275.11     (b) Any balance the first year does not cancel but is 
275.12  available in the second year. 
275.13     (c) $165,000 in 2000 is for the state board of education.  
275.14  Any functions of the state board of education that are not 
275.15  specifically transferred to another agency are transferred to 
275.16  the department of children, families, and learning under 
275.17  Minnesota Statutes, section 15.039.  For the position that is 
275.18  classified, upon transferring the responsibilities, the current 
275.19  incumbent is appointed to the classified position without exam 
275.20  or probationary period. 
275.21     (d) $2,000,000 in 2000 is for litigation costs and may only 
275.22  be used for those purposes.  This is a one-time appropriation. 
275.23     (e) The commissioner of children, families, and learning 
275.24  must provide a written update of their strategic plan for 
275.25  technology to the department of finance and the office of 
275.26  technology by April 1, 2000. 
275.27     Subd. 5.  [OFFICE OF COMMUNITY SERVICES PROGRAM.] For the 
275.28  office of community services program in the department of 
275.29  children, families, and learning: 
275.30       $4,188,000     .....     2000 
275.31       $4,255,000     .....     2001 
275.32     Any balance the first year does not cancel but is available 
275.33  the second year. 
275.34     Sec. 8.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
275.35  CENTER FOR ARTS EDUCATION.] 
275.36     The sums indicated in this section are appropriated from 
276.1   the general fund to the center for arts education for the fiscal 
276.2   years designated: 
276.3        $7,239,000     .....     2000
276.4        $7,400,000     .....     2001
276.5      Of each year's appropriation, $154,000 is to fund artist 
276.6   and arts organization participation in the education residency 
276.7   and education technology projects, $75,000 is for school support 
276.8   for the residency project, $121,000 is for further development 
276.9   of the partners:  arts and school for students (PASS) program, 
276.10  including pilots, and $220,000 is to fund the center for arts 
276.11  education base for asset preservation and facility repair.  The 
276.12  guidelines for the education residency project and the pass 
276.13  program shall be developed and defined by the center for arts 
276.14  education in cooperation with the Minnesota arts board.  The 
276.15  Minnesota arts board shall participate in the review and 
276.16  allocation process.  The center for arts education and the 
276.17  Minnesota arts board shall cooperate to fund these projects. 
276.18     Any balance in the first year does not cancel but is 
276.19  available in the second year. 
276.20     Sec. 9.  [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 
276.21     (a) The sums indicated in this section are appropriated 
276.22  from the general fund to the Minnesota state academies for the 
276.23  deaf and the blind for the fiscal years designated:  
276.24      $10,125,000    .....     2000
276.25      $10,344,000    .....     2001 
276.26     (b) Any balance in the first year does not cancel but is 
276.27  available in the second year. 
276.28     (c) $75,000 each year is for asset preservation and 
276.29  facility repair.  
276.30     (d) $15,000 each year is for the cost of holding board 
276.31  meetings in Faribault. 
276.32     Sec. 10.  [REVISOR INSTRUCTION.] 
276.33     In the next and subsequent editions of Minnesota Statutes 
276.34  the revisor shall renumber each section in column A with the 
276.35  corresponding number in column B.  The revisor shall correct all 
276.36  cross-references to be consistent with the renumbering. 
277.1              Column A               Column B
277.2              119A.25                299A.291
277.3              119A.26                299A.292
277.4              119A.27                299A.293
277.5              119A.28                299A.294
277.6              119A.29                299A.295
277.7              119A.31                299A.296
277.8              119A.32                299A.297
277.9              119A.33                299A.298
277.10             119A.34                299A.299
277.11     Sec. 11.  [REPEALER.] 
277.12     Minnesota Statutes 1998, section 119A.04, subdivision 5, is 
277.13  repealed. 
277.14                             ARTICLE 10 
277.15               EDUCATION CODE; COMPULSORY ATTENDANCE 
277.16     Section 1.  Minnesota Statutes 1998, section 120A.05, is 
277.17  amended by adding a subdivision to read: 
277.18     Subd. 3a.  [CHARTER SCHOOL.] "Charter school" means a 
277.19  public school formed according to section 124D.20.  
277.20     Sec. 2.  Minnesota Statutes 1998, section 120A.05, is 
277.21  amended by adding a subdivision to read: 
277.22     Subd. 11a.  [PUBLIC SCHOOL.] "Public school" means a school 
277.23  that receives state funds, provides an education to students 
277.24  needed to meet outcomes or standards determined by the state, 
277.25  and is accountable for the services it provides to students. 
277.26     Sec. 3.  Minnesota Statutes 1998, section 120A.22, 
277.27  subdivision 1, is amended to read: 
277.28     Subdivision 1.  [PARENTAL RESPONSIBILITY.] The parent of a 
277.29  child is primarily responsible for assuring that the child 
277.30  acquires knowledge and skills that are essential for effective 
277.31  citizenship and that the child is enrolled in school or receives 
277.32  other instruction.  
277.33     Sec. 4.  Minnesota Statutes 1998, section 120A.22, 
277.34  subdivision 5, is amended to read: 
277.35     Subd. 5.  [AGES AND TERMS.] (a) Every child between seven 
277.36  and 16 years of age must receive instruction.  Every child under 
278.1   the age of seven who is enrolled in a half-day kindergarten, or 
278.2   a full-day kindergarten program on alternate days, or other 
278.3   kindergarten programs shall receive instruction.  Except as 
278.4   provided in subdivision 6, a parent may withdraw a child under 
278.5   the age of seven from enrollment at any time. 
278.6      (b) A school district by annual board action may require 
278.7   children subject to this subdivision to receive instruction in 
278.8   summer school.  A district that acts to require children to 
278.9   receive instruction in summer school shall establish at the time 
278.10  of its action the criteria for determining which children must 
278.11  receive instruction. If a school board determines that some 
278.12  students in the district must attend summer school, then the 
278.13  truancy laws of chapters 260 and 260A apply to the students 
278.14  required to attend summer school. 
278.15                             ARTICLE 11
278.16                     CURRICULUM AND ASSESSMENT 
278.17     Section 1.  Minnesota Statutes 1998, section 120B.11, 
278.18  subdivision 5, is amended to read: 
278.19     Subd. 5.  [REPORT.] (a) By October 1 of each year, the 
278.20  school board shall use standard statewide reporting procedures 
278.21  the commissioner develops and adopt a report that includes the 
278.22  following: 
278.23     (1) student performance goals for meeting state graduation 
278.24  standards adopted for that year; 
278.25     (2) results of local assessment data, and any additional 
278.26  test data; 
278.27     (3) the annual school district improvement plans; 
278.28     (4) information about district and learning site progress 
278.29  in realizing previously adopted improvement plans; and 
278.30     (5) the amount and type of revenue attributed to each 
278.31  education site as defined in section 123B.04, subdivision 2. 
278.32     (b) The school board shall publish the report in the local 
278.33  newspaper with the largest circulation in the district or by 
278.34  mail.  The board shall make a copy of the report available to 
278.35  the public for inspection.  The board shall send a copy of the 
278.36  report to the commissioner of children, families, and learning 
279.1   by October 15 of each year. 
279.2      (c) The title of the report shall contain the name and 
279.3   number of the school district and read "Annual Report on 
279.4   Curriculum, Instruction, and Student Performance."  The report 
279.5   must include at least the following information about advisory 
279.6   committee membership: 
279.7      (1) the name of each committee member and the date when 
279.8   that member's term expires; 
279.9      (2) the method and criteria the school board uses to select 
279.10  committee members; and 
279.11     (3) the date by which a community resident must apply to 
279.12  next serve on the committee. 
279.13     Sec. 2.  [REPEALER.] 
279.14     Minnesota Statutes 1998, sections 120B.10; 120B.11, 
279.15  subdivisions 3, 4, and 7; and 120B.24, are repealed. 
279.16                             ARTICLE 12
279.17           STUDENT RIGHTS, RESPONSIBILITIES, AND BEHAVIOR 
279.18     Section 1.  Minnesota Statutes 1998, section 121A.06, is 
279.19  amended to read: 
279.20     121A.06 [REPORTS OF DANGEROUS WEAPON INCIDENTS IN SCHOOL 
279.21  ZONES.] 
279.22     Subdivision 1.  [DEFINITIONS.] As used in this section: 
279.23     (1) "dangerous weapon" has the meaning given it in section 
279.24  609.02, subdivision 6; and 
279.25     (2) "school" has the meaning given it in section 120A.22, 
279.26  subdivision 4; and 
279.27     (3) "school zone" has the meaning given it in section 
279.28  152.01, subdivision 14a, clauses (1) and (3). 
279.29     Subd. 2.  [REPORTS; CONTENT.] By January 1, 1994, The 
279.30  commissioner, in consultation with the criminal and juvenile 
279.31  information policy group, shall develop maintain a standardized 
279.32  form to be used by schools to report incidents involving the use 
279.33  or possession of a dangerous weapon in school zones.  The form 
279.34  shall include the following information: 
279.35     (1) a description of each incident, including a description 
279.36  of the dangerous weapon involved in the incident; 
280.1      (2) where, at what time, and under what circumstances the 
280.2   incident occurred; 
280.3      (3) information about the offender, other than the 
280.4   offender's name, including the offender's age; whether the 
280.5   offender was a student and, if so, where the offender attended 
280.6   school; and whether the offender was under school expulsion or 
280.7   suspension at the time of the incident; 
280.8      (4) information about the victim other than the victim's 
280.9   name, if any, including the victim's age; whether the victim was 
280.10  a student and, if so, where the victim attended school; and if 
280.11  the victim was not a student, whether the victim was employed at 
280.12  the school; 
280.13     (5) the cost of the incident to the school and to the 
280.14  victim; and 
280.15     (6) the action taken by the school administration to 
280.16  respond to the incident. 
280.17     The commissioner also shall develop an alternative 
280.18  reporting format that allows school districts to provide 
280.19  aggregate data, with an option to use computer technology to 
280.20  report the data. 
280.21     Subd. 3.  [REPORTS; FILING REQUIREMENTS.] By February 1 and 
280.22  July 1 of each year, each school shall report incidents 
280.23  involving the use or possession of a dangerous weapon in school 
280.24  zones to the commissioner.  The reports must be made on the 
280.25  standardized forms or using the alternative format developed by 
280.26  the commissioner under subdivision 2.  The commissioner shall 
280.27  compile the information it receives from the schools and report 
280.28  it annually to the commissioner of public safety, the criminal 
280.29  and juvenile information policy group, and the legislature. 
280.30     Sec. 2.  Minnesota Statutes 1998, section 121A.11, 
280.31  subdivision 1, is amended to read: 
280.32     Subdivision 1.  [DISPLAYED BY SCHOOLS.] Every public school 
280.33  in Minnesota must display an appropriate United States flag when 
280.34  in session.  The flag shall be displayed upon the school grounds 
280.35  or outside the school building, on a proper staff, on every 
280.36  legal holiday occurring during the school term and at such other 
281.1   times as the board of the district may direct.  The flag must be 
281.2   displayed within the principal rooms of the school building at 
281.3   all other times while school is in session. 
281.4      Sec. 3.  Minnesota Statutes 1998, section 121A.15, is 
281.5   amended to read: 
281.6      121A.15 [HEALTH STANDARDS; IMMUNIZATIONS; SCHOOL CHILDREN.] 
281.7      Subdivision 1.  [IMMUNIZATION REQUIREMENT.] Except as 
281.8   provided in subdivisions 3, 4, and 10, no person over two months 
281.9   old may be allowed to enroll or remain enrolled in any 
281.10  elementary or secondary school or child care facility in this 
281.11  state until the person has submitted to the administrator or 
281.12  other person having general control and supervision of the 
281.13  school or child care facility, one of the following statements: 
281.14     (1) a statement from a physician or a public clinic which 
281.15  provides immunizations an immunization provider stating that the 
281.16  person has received immunization, consistent with medically 
281.17  acceptable standards, against measles after having attained the 
281.18  age of 12 months, rubella, diphtheria, tetanus, pertussis, 
281.19  polio, mumps, haemophilus influenza type b, and hepatitis B; or 
281.20     (2) a statement from a physician or a public clinic which 
281.21  provides immunizations an immunization provider stating that the 
281.22  person has received immunizations, consistent with medically 
281.23  acceptable standards, against measles after having attained the 
281.24  age of 12 months, rubella, mumps, and haemophilus influenza type 
281.25  b and that the person has commenced a schedule of immunizations 
281.26  for diphtheria, tetanus, pertussis, polio, and hepatitis B and 
281.27  which indicates the month and year of each immunization received.
281.28     Subd. 2.  [SCHEDULE OF IMMUNIZATIONS.] No person who has 
281.29  commenced a treatment schedule of immunization pursuant to 
281.30  subdivision 1, clause (2), may remain enrolled in any child care 
281.31  facility, elementary, or secondary school in this state after 18 
281.32  months of enrollment unless there is submitted to the 
281.33  administrator, or other person having general control and 
281.34  supervision of the school or child care facility, a statement 
281.35  from a physician or a public clinic which provides immunizations 
281.36  an immunization provider that the person has completed the 
282.1   primary schedule of immunizations for diphtheria, tetanus, 
282.2   pertussis, polio, and hepatitis B.  The statement must include 
282.3   the month, day, and year of each additional immunization 
282.4   received.  For a child less than seven years of age, a primary 
282.5   schedule of immunizations shall consist of four doses of vaccine 
282.6   for diphtheria, tetanus, and pertussis and three doses of 
282.7   vaccine for poliomyelitis and hepatitis B.  For a child seven 
282.8   years of age or older, a primary schedule of immunizations shall 
282.9   consist of three doses of vaccine for diphtheria, tetanus, 
282.10  polio, and hepatitis B as specified in subdivision 10. 
282.11     Subd. 3.  [EXEMPTIONS FROM IMMUNIZATIONS.] (a) If a person 
282.12  is at least seven years old and has not been immunized against 
282.13  pertussis, the person must not be required to be immunized 
282.14  against pertussis. 
282.15     (b) If a person is at least 18 years old and has not 
282.16  completed a series of immunizations against poliomyelitis, the 
282.17  person must not be required to be immunized against 
282.18  poliomyelitis.  
282.19     (c) If a statement, signed by a physician, is submitted to 
282.20  the administrator or other person having general control and 
282.21  supervision of the school or child care facility stating that an 
282.22  immunization is contraindicated for medical reasons or that 
282.23  laboratory confirmation of the presence of adequate immunity 
282.24  exists, the immunization specified in the statement need not be 
282.25  required.  
282.26     (d) If a notarized statement signed by the minor child's 
282.27  parent or guardian or by the emancipated person is submitted to 
282.28  the administrator or other person having general control and 
282.29  supervision of the school or child care facility stating that 
282.30  the person has not been immunized as prescribed in subdivision 1 
282.31  because of the conscientiously held beliefs of the parent or 
282.32  guardian of the minor child or of the emancipated person, the 
282.33  immunizations specified in the statement shall not be required.  
282.34  This statement must also be forwarded to the commissioner of the 
282.35  department of health.  
282.36     (e) If the person is under 15 months, the person is not 
283.1   required to be immunized against measles, rubella, or mumps. 
283.2      (f) If a person is at least five years old and has not been 
283.3   immunized against haemophilus influenza type b, the person is 
283.4   not required to be immunized against haemophilus influenza type 
283.5   b. 
283.6      Subd. 4.  [SUBSTITUTE IMMUNIZATION STATEMENT.] (a) A person 
283.7   who is enrolling or enrolled in an elementary or secondary 
283.8   school or child care facility may substitute a statement from 
283.9   the emancipated person or a parent or guardian if the person is 
283.10  a minor child in lieu of the statement from a physician or 
283.11  public clinic which provides immunizations an immunization 
283.12  provider.  If the statement is from a parent or guardian or 
283.13  emancipated person, the statement must indicate the month and 
283.14  year of each immunization given. 
283.15     (b) In order for the statement to be acceptable for a 
283.16  person who is enrolling in an elementary school and who is six 
283.17  years of age or younger, it must indicate that the following was 
283.18  given:  no less than one dose of vaccine each for measles, 
283.19  mumps, and rubella given separately or in combination; no less 
283.20  than four doses of vaccine for poliomyelitis, unless the third 
283.21  dose was given after the fourth birthday, then three doses are 
283.22  minimum; no less than five doses of vaccine for diphtheria, 
283.23  tetanus, and pertussis, unless the fourth dose was given after 
283.24  the fourth birthday, then four doses are minimum; and no less 
283.25  than three doses of vaccine for hepatitis B as specified in 
283.26  subdivision 10.  
283.27     (c) In order for the statement to be consistent with 
283.28  subdivision 10 and acceptable for a person who is enrolling in 
283.29  an elementary or secondary school and is age seven through age 
283.30  19, the statement must indicate that the person has received no 
283.31  less than one dose of vaccine each for measles, mumps, and 
283.32  rubella given separately or in combination, and no less than 
283.33  three doses of vaccine for poliomyelitis, diphtheria, tetanus, 
283.34  and hepatitis B.  
283.35     (d) In order for the statement to be acceptable for a 
283.36  person who is enrolling in a secondary school, and who was born 
284.1   after 1956 and is 20 years of age or older, the statement must 
284.2   indicate that the person has received no less than one dose of 
284.3   vaccine each for measles, mumps, and rubella given separately or 
284.4   in combination, and no less than one dose of vaccine for 
284.5   diphtheria and tetanus within the preceding ten years. 
284.6      (e) In order for the statement to be acceptable for a 
284.7   person who is enrolling in a child care facility and who is at 
284.8   least 15 months old but who has not reached five years of age, 
284.9   it must indicate that the following were given:  no less than 
284.10  one dose of vaccine each for measles, mumps, and rubella given 
284.11  separately or in combination; no less than one dose of vaccine 
284.12  for haemophilus influenza type b; no less than four doses of 
284.13  vaccine for diphtheria, tetanus, and pertussis; and no less than 
284.14  three doses of vaccine for poliomyelitis. 
284.15     (f) In order for the statement to be acceptable for a 
284.16  person who is enrolling in a child care facility and who is five 
284.17  or six years of age, it must indicate that the following was 
284.18  given:  no less than one dose of vaccine each for measles, 
284.19  mumps, and rubella given separately or in combination; no less 
284.20  than four doses of vaccine for diphtheria, tetanus, and 
284.21  pertussis; and no less than three doses of vaccine for 
284.22  poliomyelitis. 
284.23     (g) In order for the statement to be acceptable for a 
284.24  person who is enrolling in a child care facility and who is 
284.25  seven years of age or older, the statement must indicate that 
284.26  the person has received no less than one dose of vaccine each 
284.27  for measles, mumps, and rubella given separately or in 
284.28  combination and consistent with subdivision 10, and no less than 
284.29  three doses of vaccine for poliomyelitis, diphtheria, and 
284.30  tetanus.  
284.31     (h) The commissioner of health, on finding that any of the 
284.32  above requirements are not necessary to protect the public's 
284.33  health, may suspend for one year that requirement.  
284.34     Subd. 5.  [TRANSFER OF IMMUNIZATION STATEMENTS.] If a 
284.35  person transfers from one elementary or secondary school to 
284.36  another, the school board of a public school district or the 
285.1   administrator of a nonpublic school may allow the person up to a 
285.2   maximum of 30 days to submit one or more of the statements as 
285.3   specified in subdivision 1 or 3, during which time the person 
285.4   may enroll in and attend the school.  If a person enrolls in a 
285.5   child care facility in which at least 75 percent of children in 
285.6   the facility participate on a one-time only or occasional basis 
285.7   to a maximum of 45 hours per child, per month, or is placed in a 
285.8   facility by a crisis nursery, the person shall be exempt from 
285.9   all requirements of this section for up to five consecutive 
285.10  days, starting from the first day of attendance. 
285.11     Subd. 6.  [SUSPENSION OF IMMUNIZATION REQUIREMENT.] The 
285.12  commissioner of health, on finding that an immunization required 
285.13  pursuant to this section is not necessary to protect the 
285.14  public's health, may suspend for one year the requirement that 
285.15  children receive that immunization. 
285.16     Subd. 7.  [FILE ON IMMUNIZATION RECORDS.] Each school or 
285.17  child care facility shall maintain on file immunization records 
285.18  for all persons in attendance that contain the information 
285.19  required by subdivisions 1, 2, and 3.  The school shall maintain 
285.20  the records for at least five years after the person attains the 
285.21  age of majority.  The department of health and the board of 
285.22  health, as defined in section 145A.02, subdivision 2, in whose 
285.23  jurisdiction the school or child care facility is located, shall 
285.24  have access to the files maintained pursuant to this 
285.25  subdivision.  When a person transfers to another elementary or 
285.26  secondary school or child care facility, the administrator or 
285.27  other person having general control and supervision of the 
285.28  school or child care facility shall assist the person's parent 
285.29  or guardian in the transfer of the immunization file to the 
285.30  person's new school or child care facility within 30 days of the 
285.31  transfer.  Upon the request of a public or private 
285.32  post-secondary educational institution, as defined in section 
285.33  135A.14, the administrator or other person having general 
285.34  control or supervision of a school shall assist in the transfer 
285.35  of a student's immunization file to the post-secondary 
285.36  institution. 
286.1      Subd. 8.  [REPORT.] The administrator or other person 
286.2   having general control and supervision of the elementary or 
286.3   secondary school shall file a report with the commissioner on 
286.4   all persons enrolled in the school.  The superintendent of each 
286.5   district shall file a report with the commissioner for all 
286.6   persons within the district receiving instruction in a home 
286.7   school in compliance with sections 120A.22 and 120A.24.  The 
286.8   parent of persons receiving instruction in a home school shall 
286.9   submit the statements as required by subdivisions 1, 2, 3, and 4 
286.10  to the superintendent of the district in which the person 
286.11  resides by October 1 of each school year.  The school report 
286.12  must be prepared on forms developed jointly by the commissioner 
286.13  of health and the commissioner of children, families, and 
286.14  learning and be distributed to the local districts by the 
286.15  commissioner of health.  The school report must state the number 
286.16  of persons attending the school, the number of persons who have 
286.17  not been immunized according to subdivision 1 or 2, and the 
286.18  number of persons who received an exemption under subdivision 3, 
286.19  clause (c) or (d).  The school report must be filed with the 
286.20  commissioner of children, families, and learning within 60 days 
286.21  of the commencement of each new school term.  Upon request, a 
286.22  district must be given a 60-day extension for filing the school 
286.23  report.  The commissioner of children, families, and learning 
286.24  shall forward the report, or a copy thereof, to the commissioner 
286.25  of health who shall provide summary reports to boards of health 
286.26  as defined in section 145A.02, subdivision 2.  The administrator 
286.27  or other person having general control and supervision of the 
286.28  child care facility shall file a report with the commissioner of 
286.29  human services on all persons enrolled in the child care 
286.30  facility.  The child care facility report must be prepared on 
286.31  forms developed jointly by the commissioner of health and the 
286.32  commissioner of human services and be distributed to child care 
286.33  facilities by the commissioner of health.  The child care 
286.34  facility report must state the number of persons enrolled in the 
286.35  facility, the number of persons with no immunizations, the 
286.36  number of persons who received an exemption under subdivision 3, 
287.1   clause (c) or (d), and the number of persons with partial or 
287.2   full immunization histories.  The child care facility report 
287.3   must be filed with the commissioner of human services by 
287.4   November 1 of each year.  The commissioner of human services 
287.5   shall forward the report, or a copy thereof, to the commissioner 
287.6   of health who shall provide summary reports to boards of health 
287.7   as defined in section 145A.02, subdivision 2.  The report 
287.8   required by this subdivision is not required of a family child 
287.9   care or group family child care facility, for prekindergarten 
287.10  children enrolled in any elementary or secondary school provided 
287.11  services according to sections 125A.05 and 125A.06, nor for 
287.12  child care facilities in which at least 75 percent of children 
287.13  in the facility participate on a one-time only or occasional 
287.14  basis to a maximum of 45 hours per child, per month.  
287.15     Subd. 9.  [DEFINITIONS.] As used in this section the 
287.16  following terms have the meanings given them. 
287.17     (a) "Elementary or secondary school" includes any public 
287.18  school as defined in section 120A.05, subdivisions 9, 11, 13, 
287.19  and 17, or nonpublic school, church, or religious organization, 
287.20  or home school in which a child is provided instruction in 
287.21  compliance with sections 120A.22 and 120A.24. 
287.22     (b) "Person enrolled in any elementary or secondary school" 
287.23  means a person born after 1956 and enrolled in grades 
287.24  kindergarten through 12, and a child with a disability receiving 
287.25  special instruction and services as required in sections section 
287.26  125A.03 to 125A.24 and 125A.65, excluding a child being provided 
287.27  services according to section 125A.05, paragraph (c), or 
287.28  125A.06, paragraph (d) subdivisions 3 and 7. 
287.29     (c) "Child care facility" includes those child care 
287.30  programs subject to licensure under chapter 245A, and Minnesota 
287.31  Rules, chapters 9502 and 9503. 
287.32     (d) "Family child care" means child care for no more than 
287.33  ten children at one time of which no more than six are under 
287.34  school age.  The licensed capacity must include all children of 
287.35  any caregiver when the children are present in the residence. 
287.36     (e) "Group family child care" means child care for no more 
288.1   than 14 children at any one time.  The total number of children 
288.2   includes all children of any caregiver when the children are 
288.3   present in the residence.  
288.4      (f) "Administrator" means any individual having general 
288.5   control and supervision of a school or child care facility. 
288.6      (g) "Immunization provider" means any physician, health 
288.7   care provider, or public clinic that provides immunizations. 
288.8      Subd. 10.  [REQUIREMENTS FOR IMMUNIZATION STATEMENTS.] A 
288.9   statement required to be submitted under subdivisions 1, 2, and 
288.10  4 to document evidence of immunization shall include month, day, 
288.11  and year for immunizations administered after January 1, 1990.  
288.12     (a) For persons enrolled in grades 7 and 12 during the 
288.13  1996-1997 school term, the statement must indicate that the 
288.14  person has received a dose of tetanus and diphtheria toxoid no 
288.15  earlier than 11 years of age. 
288.16     (b) Except as specified in paragraph (e), for persons 
288.17  enrolled in grades 7, 8, and 12 during the 1997-1998 school 
288.18  term, the statement must indicate that the person has received a 
288.19  dose of tetanus and diphtheria toxoid no earlier than 11 years 
288.20  of age.  
288.21     (c) Except as specified in paragraph (e) (c), for persons 
288.22  enrolled in grades 7 through 12 during the 1998-1999 school term 
288.23  and for each year thereafter, the statement must indicate that 
288.24  the person has received a dose of tetanus and diphtheria toxoid 
288.25  no earlier than 11 years of age.  
288.26     (d) (b) For persons enrolled in grades 7 through 12 during 
288.27  the 1996-1997 school year and for each year thereafter, the 
288.28  statement must indicate that the person has received at least 
288.29  two doses of vaccine against measles, mumps, and rubella, given 
288.30  alone or separately and given not less than one month apart. 
288.31     (e) (c) A person who has received at least three doses of 
288.32  tetanus and diphtheria toxoids, with the most recent dose given 
288.33  after age six and before age 11, is not required to have 
288.34  additional immunization against diphtheria and tetanus until ten 
288.35  years have elapsed from the person's most recent dose of tetanus 
288.36  and diphtheria toxoid. 
289.1      (f) (d) The requirement for hepatitis B vaccination shall 
289.2   apply to persons enrolling in kindergarten beginning with the 
289.3   2000-2001 school term. 
289.4      (g) (e) The requirement for hepatitis B vaccination shall 
289.5   apply to persons enrolling in grade 7 beginning with the 
289.6   2001-2002 school term. 
289.7      Subd. 11.  [COMMISSIONER OF HUMAN SERVICES; CONTINUED 
289.8   RESPONSIBILITIES.] Nothing in this section relieves the 
289.9   commissioner of human services of the responsibility, under 
289.10  chapter 245A, to inspect and assure that statements required by 
289.11  this section are on file at child care programs subject to 
289.12  licensure. 
289.13     Sec. 4.  Minnesota Statutes 1998, section 121A.23, 
289.14  subdivision 1, is amended to read: 
289.15     Subdivision 1.  [AIDS PROGRAM.] Each district must have a 
289.16  program to prevent and reduce the risk of acquired immune 
289.17  deficiency syndrome (AIDS).  The commissioner of children, 
289.18  families, and learning, in consultation with the commissioner of 
289.19  health, shall assist districts in developing and implementing a 
289.20  program to prevent and reduce the risk of acquired immune 
289.21  deficiency syndrome.  Each district must have a program that 
289.22  includes at least: 
289.23     (1) planning materials, guidelines, and other technically 
289.24  accurate and updated information; 
289.25     (2) a comprehensive, technically accurate, and updated 
289.26  curriculum; 
289.27     (3) cooperation and coordination among districts and SCs; 
289.28     (4) a targeting of adolescents, especially those who may be 
289.29  at high risk of contracting AIDS, for prevention efforts; 
289.30     (5) involvement of parents and other community members; 
289.31     (6) in-service training for appropriate district staff and 
289.32  school board members; 
289.33     (7) collaboration with state agencies and organizations 
289.34  having an AIDS prevention or AIDS risk reduction program; 
289.35     (8) collaboration with local community health services, 
289.36  agencies and organizations having an AIDS prevention or AIDS 
290.1   risk reduction program; and 
290.2      (9) participation by state and local student organizations. 
290.3      The department may provide assistance at a neutral site to 
290.4   a nonpublic school participating in a district's program.  
290.5   District programs must not conflict with the health and wellness 
290.6   curriculum developed under Laws 1987, chapter 398, article 5, 
290.7   section 2, subdivision 7. 
290.8      If a district fails to develop and implement a program to 
290.9   prevent and reduce the risk of AIDS, the department must assist 
290.10  the service cooperative in the region serving that district to 
290.11  develop or implement the program. 
290.12     Sec. 5.  Minnesota Statutes 1998, section 121A.26, is 
290.13  amended to read: 
290.14     121A.26 [SCHOOL PREASSESSMENT TEAMS.] 
290.15     Every public school, and every nonpublic school that 
290.16  participates in a school district chemical abuse program shall 
290.17  establish a chemical abuse preassessment team.  The 
290.18  preassessment team must be composed of classroom teachers, 
290.19  administrators, and to the extent they exist in each school, 
290.20  school nurse, school counselor or psychologist, social worker, 
290.21  chemical abuse specialist, and other appropriate professional 
290.22  staff.  The superintendents or their designees shall designate 
290.23  the team members in the public schools.  The preassessment team 
290.24  is responsible for addressing reports of chemical abuse problems 
290.25  and making recommendations for appropriate responses to the 
290.26  individual reported cases.  Districts shall adopt a process for 
290.27  addressing reports of chemical abuse problems. 
290.28     Within 45 days after receiving an individual reported case, 
290.29  the preassessment team shall make a determination whether to 
290.30  provide the student and, in the case of a minor, the student's 
290.31  parents with information about school and community services in 
290.32  connection with chemical abuse.  Data may be disclosed without 
290.33  consent in health and safety emergencies pursuant to section 
290.34  13.32 and applicable federal law and regulations.  
290.35     Notwithstanding section 138.163, destruction of records 
290.36  identifying individual students shall be governed by this 
291.1   section.  If the preassessment team decides not to provide a 
291.2   student and, in the case of a minor, the student's parents with 
291.3   information about school or community services in connection 
291.4   with chemical abuse, records created or maintained by the 
291.5   preassessment team about the student shall be destroyed not 
291.6   later than six months after the determination is made.  If the 
291.7   preassessment team decides to provide a student and, in the case 
291.8   of a minor, the student's parents with information about school 
291.9   or community services in connection with chemical abuse, records 
291.10  created or maintained by the preassessment team about the 
291.11  student shall be destroyed not later than six months after the 
291.12  student is no longer enrolled in the district. 
291.13     Sec. 6.  Minnesota Statutes 1998, section 121A.27, is 
291.14  amended to read: 
291.15     121A.27 [SCHOOL AND COMMUNITY ADVISORY TEAM.] 
291.16     The superintendent, with the advice of the school board, 
291.17  shall establish a school and community advisory team to address 
291.18  chemical abuse problems in the district.  The school and 
291.19  community advisory team must be composed of representatives from 
291.20  the school preassessment team established in section 121A.26, to 
291.21  the extent possible, law enforcement agencies, county attorney's 
291.22  office, social service agencies, chemical abuse treatment 
291.23  programs, parents, and the business community.  The community 
291.24  advisory team shall: 
291.25     (1) build awareness of the problem within the community, 
291.26  identify available treatment and counseling programs for 
291.27  students and develop good working relationships and enhance 
291.28  communication between the schools and other community agencies; 
291.29  and 
291.30     (2) develop a written procedure clarifying the notification 
291.31  process to be used by the chemical abuse preassessment team 
291.32  established under section 121A.26 when a student is believed to 
291.33  be in possession of or under the influence of alcohol or a 
291.34  controlled substance.  The procedure must include contact with 
291.35  the student, and the student's parents or guardian in the case 
291.36  of a minor student.  
292.1      Sec. 7.  Minnesota Statutes 1998, section 121A.28, is 
292.2   amended to read: 
292.3      121A.28 [LAW ENFORCEMENT RECORDS.] 
292.4      A law enforcement agency shall provide notice of any drug 
292.5   incident occurring within the agency's jurisdiction, in which 
292.6   the agency has probable cause to believe a student violated 
292.7   section 152.021, 152.022, 152.023, 152.024, 152.025, 152.027, 
292.8   152.097, or 340A.503, subdivision 1, 2, or 3.  The notice shall 
292.9   be in writing and shall be provided, within two weeks after an 
292.10  incident occurs, to the chemical abuse preassessment team in the 
292.11  school where the student is enrolled. 
292.12     Sec. 8.  Minnesota Statutes 1998, section 121A.29, 
292.13  subdivision 1, is amended to read: 
292.14     Subdivision 1.  [TEACHER'S DUTY.] A teacher in a nonpublic 
292.15  school participating in a school district chemical use program, 
292.16  or a public school teacher, who knows or has reason to believe 
292.17  that a student is using, possessing, or transferring alcohol or 
292.18  a controlled substance while on the school premises or involved 
292.19  in school-related activities, shall immediately notify 
292.20  the school's chemical abuse preassessment team school of this 
292.21  information.  A teacher who complies with this section shall be 
292.22  defended and indemnified under section 466.07, subdivision 1, in 
292.23  any action for damages arising out of the compliance. 
292.24     Sec. 9.  Minnesota Statutes 1998, section 121A.32, 
292.25  subdivision 1, is amended to read: 
292.26     Subdivision 1.  [REQUIREMENT TO WEAR EYE PROTECTIVE 
292.27  DEVICES.] (a) As a condition of enrollment in a course or 
292.28  activity, every person student shall wear industrial quality eye 
292.29  protective devices when participating in, observing or 
292.30  performing any function in connection with, any courses or 
292.31  activities taking place in eye protection areas, as defined in 
292.32  subdivision 3, of any school, college, university or other 
292.33  educational elementary or secondary institution in the state.  
292.34     (b) Industrial quality eye protective devices are defined 
292.35  as those meeting the standards of the American National 
292.36  Standards Institute, currently identified as ANSI 287.1-1968. 
293.1      (c) Any student failing to comply with this requirement may 
293.2   be temporarily suspended from participation in that activity.  
293.3   Repeated failure to comply with this requirement shall result in 
293.4   cancellation of the student from the activity or course. 
293.5      Sec. 10.  Minnesota Statutes 1998, section 121A.34, is 
293.6   amended to read: 
293.7      121A.34 [SCHOOL SAFETY PATROLS.] 
293.8      Subdivision 1.  [ESTABLISHMENT.] In the exercise of 
293.9   authorized control and supervision over pupils attending schools 
293.10  and other educational institutions, both public and private, The 
293.11  governing board or other directing authority of any such school 
293.12  or institution is empowered to authorize the organization and 
293.13  supervision of school safety patrols for the purpose of 
293.14  influencing and encouraging other pupils to refrain from 
293.15  crossing public highways at points other than regular crossings 
293.16  and for the purpose of directing pupils when and where to cross 
293.17  highways.  
293.18     Subd. 2.  [APPOINTMENT OF MEMBERS.] Unless the parents or 
293.19  guardian of a pupil object in writing to the school authorities 
293.20  to the appointment of the pupil on a school safety patrol, it is 
293.21  lawful for any A pupil over nine years of age to old may be 
293.22  appointed and designated as a member of to the patrol in any 
293.23  school in which.  If there are no pupils who have attained such 
293.24  age at least nine years old, then any pupil in the highest grade 
293.25  therein in that school may be so appointed and 
293.26  designated.  The pupil's parent or guardian may object to the 
293.27  appointment in writing to school authorities.  School 
293.28  authorities may also appoint and designate nonpupil adults as 
293.29  members of a school safety patrol on a voluntary or for-hire 
293.30  basis. 
293.31     Subd. 3.  [LIABILITY NOT TO ATTACH.] No liability shall 
293.32  attach either to the A school, educational institution, 
293.33  governing board, directing authority, or any individual 
293.34  director, board member, superintendent, principal, teacher, or 
293.35  other school authority by virtue of the organization, 
293.36  maintenance, or operation of such a school safety patrol shall 
294.1   not be liable because of injuries sustained by any pupil, 
294.2   whether a member of the patrol or otherwise by reason of due to 
294.3   the operation and maintenance of the patrol.  
294.4      Subd. 4.  [IDENTIFY, OPERATION.] Identification and 
294.5   operation of school safety patrols shall be uniform throughout 
294.6   the state and the method of identification and signals to be 
294.7   used shall be as prescribed by the commissioner of public 
294.8   safety.  School safety patrol members may wear fluorescent 
294.9   reflective vests. 
294.10     Sec. 11.  Minnesota Statutes 1998, section 121A.55, is 
294.11  amended to read: 
294.12     121A.55 [POLICIES TO BE ESTABLISHED.] 
294.13     (a) The commissioner of children, families, and learning 
294.14  shall promulgate guidelines to assist each school board.  Each 
294.15  school board shall establish uniform criteria for dismissal and 
294.16  adopt written policies and rules to effectuate the purposes of 
294.17  sections 121A.40 to 121A.56.  The policies shall emphasize 
294.18  preventing dismissals through early detection of problems and 
294.19  shall be designed to address students' inappropriate behavior 
294.20  from recurring.  The policies shall recognize the continuing 
294.21  responsibility of the school for the education of the pupil 
294.22  during the dismissal period.  The alternative educational 
294.23  services, if the pupil wishes to take advantage of them, must be 
294.24  adequate to allow the pupil to make progress towards meeting the 
294.25  graduation standards adopted under section 120B.02 and help 
294.26  prepare the pupil for readmission.  
294.27     (b) An area learning center under section 123A.05 may not 
294.28  prohibit an expelled or excluded pupil from enrolling solely 
294.29  because a district expelled or excluded the pupil.  The board of 
294.30  the area learning center may use the provisions of the Pupil 
294.31  Fair Dismissal Act to exclude a pupil or to require an admission 
294.32  plan. 
294.33     (c) The commissioner shall actively encourage and assist 
294.34  school districts to cooperatively establish alternative 
294.35  educational services within school buildings or at alternative 
294.36  program sites that offer instruction to pupils who are dismissed 
295.1   from school for willfully engaging in dangerous, disruptive, or 
295.2   violent behavior, including for possessing a firearm in a school 
295.3   zone. 
295.4      Sec. 12.  Minnesota Statutes 1998, section 121A.69, 
295.5   subdivision 3, is amended to read: 
295.6      Subd. 3.  [SCHOOL BOARD POLICY.] Each school board shall 
295.7   adopt a written policy governing student or staff hazing.  The 
295.8   policy must apply to student behavior that occurs on or off 
295.9   school property and during and after school hours.  The policy 
295.10  must include reporting procedures and disciplinary consequences 
295.11  for violating the policy.  Disciplinary consequences must be 
295.12  sufficiently severe to deter violations and appropriately 
295.13  discipline prohibited behavior.  Disciplinary consequences must 
295.14  conform with sections 121A.41 to 121A.56.  Each school must 
295.15  include the policy in the student handbook on school policies. 
295.16     Sec. 13.  [REPEALER.] 
295.17     Minnesota Statutes 1998, sections 121A.03, subdivision 3; 
295.18  121A.11, subdivision 2; 121A.16; 121A.23, subdivision 2; 
295.19  121A.32, subdivisions 2, 4, and 5; and 121A.41, subdivision 3, 
295.20  are repealed. 
295.21                             ARTICLE 13
295.22                    TEACHERS AND OTHER EDUCATORS 
295.23     Section 1.  Minnesota Statutes 1998, section 122A.09, 
295.24  subdivision 6, is amended to read: 
295.25     Subd. 6.  [REGISTER OF PERSONS LICENSED.] The executive 
295.26  secretary of the board of teaching shall keep a record of the 
295.27  proceedings of and a register of all persons licensed pursuant 
295.28  to the provisions of this chapter.  The register must show the 
295.29  name, address, license number and the renewal of the license.  
295.30  The board must on July 1, of each year or as soon thereafter as 
295.31  is practicable, compile a list of such duly licensed teachers 
295.32  and transmit a copy of the list to the board.  A copy of the 
295.33  register must be available during business hours at the office 
295.34  of the board to any interested person.  
295.35     Sec. 2.  Minnesota Statutes 1998, section 122A.15, is 
295.36  amended to read: 
296.1      122A.15 [TEACHERS, SUPERVISORY AND SUPPORT PERSONNEL, 
296.2   DEFINITIONS, LICENSURE.] 
296.3      Subdivision 1.  [TEACHERS.] The term "teachers" for the 
296.4   purpose of licensure, means all persons employed in a public 
296.5   school or education district or by a service cooperative as 
296.6   members of the instructional, supervisory, and support staff 
296.7   including superintendents, principals, supervisors, secondary 
296.8   vocational and other classroom teachers, librarians, counselors, 
296.9   school psychologists, school nurses, school social workers, 
296.10  audio-visual directors and coordinators, recreation personnel, 
296.11  media generalists, media supervisors, and speech therapists 
296.12  educational speech-language pathologists.  
296.13     Subd. 2.  [SUPERVISORY PERSONNEL.] "Supervisory personnel" 
296.14  for the purpose of licensure means superintendents, principals, 
296.15  and professional employees who devote 50 percent or more of 
296.16  their time to administrative or supervisory duties over other 
296.17  personnel, and includes athletic coaches.  
296.18     Sec. 3.  Minnesota Statutes 1998, section 122A.22, is 
296.19  amended to read: 
296.20     122A.22 [DISTRICT RECORDING OF TEACHER LICENSES.] 
296.21     No person shall be accounted a qualified teacher until the 
296.22  person has filed for record with the district superintendent 
296.23  where the person intends to teach a license, or certified copy 
296.24  of a license, authorizing the person to teach school in the 
296.25  district school system. 
296.26     Sec. 4.  Minnesota Statutes 1998, section 122A.40, 
296.27  subdivision 3, is amended to read: 
296.28     Subd. 3.  [HIRING, DISMISSING.] School boards must hire or 
296.29  dismiss teachers at duly appropriately called meetings.  Where a 
296.30  husband and wife, brother and sister, or two brothers or 
296.31  sisters, constitute a quorum, no contract employing a teacher 
296.32  shall be made or authorized except upon the unanimous vote of 
296.33  the full board.  A teacher related by blood or marriage, within 
296.34  the fourth degree, computed by the civil law, to a board member 
296.35  shall not be employed except by a unanimous vote of the full 
296.36  board.  The initial employment of the teacher in the district 
297.1   must be by written contract, signed by the teacher and by the 
297.2   chair and clerk.  All subsequent employment of the teacher in 
297.3   the district must be by written contract, signed by the teacher 
297.4   and by the chair and clerk, except where there is a master 
297.5   agreement covering the employment of the teacher.  Contracts for 
297.6   teaching or supervision of teaching can be made only with 
297.7   qualified teachers.  A teacher shall not be required to reside 
297.8   within the employing district as a condition to teaching 
297.9   employment or continued teaching employment.  
297.10     Sec. 5.  Minnesota Statutes 1998, section 122A.40, 
297.11  subdivision 5, is amended to read: 
297.12     Subd. 5.  [PROBATIONARY PERIOD.] The first three 
297.13  consecutive years of a teacher's first teaching experience in 
297.14  Minnesota in a single district is deemed to be a probationary 
297.15  period of employment, and after completion thereof, the 
297.16  probationary period in each district in which the teacher is 
297.17  thereafter employed shall be one year.  The school board must 
297.18  adopt a plan for written evaluation of teachers during the 
297.19  probationary period.  Evaluation must occur at least three times 
297.20  each year for a teacher performing services on 120 or more 
297.21  school days, at least two times each year for a teacher 
297.22  performing services on 60 to 119 school days, and at least one 
297.23  time each year for a teacher performing services on fewer than 
297.24  60 school days.  Days devoted to parent-teacher conferences, 
297.25  teachers' workshops, and other staff development opportunities 
297.26  and days on which a teacher is absent from school must not be 
297.27  included in determining the number of school days on which a 
297.28  teacher performs services.  During the probationary period any 
297.29  annual contract with any teacher may or may not be renewed as 
297.30  the school board shall see fit.  However, The board must give 
297.31  any such probationary teacher whose contract it declines to 
297.32  renew for the following school year written notice to that 
297.33  effect before June 1.  If the teacher requests reasons for any 
297.34  nonrenewal of a teaching contract, the board must give the 
297.35  teacher its reason in writing, including a statement that 
297.36  appropriate supervision was furnished describing the nature and 
298.1   the extent of such supervision furnished the teacher during the 
298.2   employment by the board, within ten days after receiving such 
298.3   request.  The school board may, after a hearing held upon due 
298.4   notice, discharge a teacher during the probationary period for 
298.5   cause, effective immediately, under section 122A.44.  
298.6      Sec. 6.  Minnesota Statutes 1998, section 122A.40, 
298.7   subdivision 8, is amended to read: 
298.8      Subd. 8.  [PEER REVIEW FOR CONTINUING CONTRACT TEACHERS.] A 
298.9   school board and an exclusive representative of the teachers in 
298.10  the district shall develop a peer review process for continuing 
298.11  contract teachers and probationary teachers through joint 
298.12  agreement. 
298.13     Sec. 7.  Minnesota Statutes 1998, section 122A.40, 
298.14  subdivision 10, is amended to read: 
298.15     Subd. 10.  [NEGOTIATED UNREQUESTED LEAVE OF ABSENCE.] The 
298.16  school board and the exclusive bargaining representative of the 
298.17  teachers may negotiate a plan providing for unrequested leave of 
298.18  absence without pay or fringe benefits for as many teachers as 
298.19  may be necessary because of discontinuance of position, lack of 
298.20  pupils, financial limitations, or merger of classes caused by 
298.21  consolidation of districts.  Failing to successfully negotiate 
298.22  such a plan, the provisions of subdivision 11 shall apply.  The 
298.23  negotiated plan must not include provisions which would result 
298.24  in the exercise of seniority by a teacher holding a provisional 
298.25  license, other than a vocational education license, contrary to 
298.26  the provisions of subdivision 11, clause (c), or the 
298.27  reinstatement of a teacher holding a provisional license, other 
298.28  than a vocational education license, contrary to the provisions 
298.29  of subdivision 11, clause (e).  The provisions of section 
298.30  179A.16 do not apply for the purposes of this subdivision. 
298.31     Sec. 8.  Minnesota Statutes 1998, section 122A.40, 
298.32  subdivision 19, is amended to read: 
298.33     Subd. 19.  [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 
298.34  EXPUNGEMENT.] All evaluations and files generated within a 
298.35  school district relating to each individual teacher must be 
298.36  available to each individual teacher upon written request.  
299.1   Effective January 1, 1976, all evaluations and files, wherever 
299.2   generated, relating to each individual teacher must be available 
299.3   to each individual teacher upon written request.  The teacher 
299.4   shall have the right to reproduce any of the contents of the 
299.5   files at the teacher's expense and to submit for inclusion in 
299.6   the file written information in response to any material 
299.7   contained therein. 
299.8      A district may destroy the files as provided by law and 
299.9   must expunge from the teacher's file any material found to be 
299.10  false or inaccurate through the grievance procedure required 
299.11  pursuant to section 179A.20, subdivision 4.  The grievance 
299.12  procedure promulgated by the director of the bureau of mediation 
299.13  services, pursuant to section 179A.04, subdivision 3, clause 
299.14  (h), applies to those principals and supervisory employees not 
299.15  included in an appropriate unit as defined in section 179A.03.  
299.16  Expungement proceedings must be commenced within the time period 
299.17  provided in the collective bargaining agreement for the 
299.18  commencement of a grievance.  If no time period is provided in 
299.19  the bargaining agreement, the expungement proceedings must 
299.20  commence within 15 days after the teacher has knowledge of the 
299.21  inclusion in the teacher's file of the material the teacher 
299.22  seeks to have expunged.  
299.23     Sec. 9.  Minnesota Statutes 1998, section 122A.41, 
299.24  subdivision 15, is amended to read: 
299.25     Subd. 15.  [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 
299.26  EXPUNGEMENT.] All evaluations and files generated within a 
299.27  district relating to each individual teacher must be available 
299.28  to each individual teacher upon the teacher's written request.  
299.29  Effective January 1, 1976, all evaluations and files, wherever 
299.30  generated, relating to each individual teacher must be available 
299.31  to each individual teacher upon the teacher's written request.  
299.32  The teacher has the right to reproduce any of the contents of 
299.33  the files at the teacher's expense and to submit for inclusion 
299.34  in the file written information in response to any material 
299.35  contained therein. 
299.36     A district may destroy the files as provided by law and 
300.1   must expunge from the teacher's file any material found to be 
300.2   false or substantially inaccurate through the grievance 
300.3   procedure required pursuant to section 179A.20, subdivision 4.  
300.4   The grievance procedure promulgated by the director of the 
300.5   bureau of mediation services, pursuant to section 179A.04, 
300.6   subdivision 3, clause (h), applies to those principals and 
300.7   supervisory employees not included in an appropriate unit as 
300.8   defined in section 179A.03.  Expungement proceedings must be 
300.9   commenced within the time period provided in the collective 
300.10  bargaining agreement for the commencement of a grievance.  If no 
300.11  time period is provided in the bargaining agreement, the 
300.12  expungement proceedings must commence within 15 days after the 
300.13  teacher has knowledge of the inclusion in the teacher's file of 
300.14  the material the teacher seeks to have expunged.  
300.15     Sec. 10.  [122A.455] [TEACHER CONTRACTS.] 
300.16     The school board and the exclusive bargaining 
300.17  representative of the teachers must negotiate, if applicable: 
300.18     (1) short-term, limited contracts; 
300.19     (2) summer school contracts; 
300.20     (3) sabbatical leave; 
300.21     (4) faculty and staff exchange programs; and 
300.22     (5) temporary assignments. 
300.23     After May 17, 1999, no independent school district shall 
300.24  enter into a collective bargaining agreement with the exclusive 
300.25  bargaining representative of the teachers that does not include 
300.26  a plan providing for an unrequested leave of absence for 
300.27  teachers. 
300.28     Sec. 11.  Minnesota Statutes 1998, section 122A.51, is 
300.29  amended to read: 
300.30     122A.51 [TEACHER LUNCH PERIOD.] 
300.31     A teacher must be provided with a duty-free lunch period, 
300.32  scheduled according to school board policy or negotiated 
300.33  agreement. 
300.34     Sec. 12.  Minnesota Statutes 1998, section 122A.58, 
300.35  subdivision 1, is amended to read: 
300.36     Subdivision 1.  [TERMINATION; HEARING.] Before a district 
301.1   terminates the coaching duties of an employee who is required to 
301.2   hold a license as an athletic coach from the state board of 
301.3   education a head varsity coach of an interscholastic sport at 
301.4   the secondary school level, the district must notify the 
301.5   employee in writing and state its reason for the proposed 
301.6   termination.  Within 14 days of receiving this notification, the 
301.7   employee may request in writing a hearing on the termination 
301.8   before the board.  If a hearing is requested, the board must 
301.9   hold a hearing within 25 days according to the hearing 
301.10  procedures specified in section 122A.40, subdivision 14, and the 
301.11  termination is final upon the order of the board after the 
301.12  hearing. 
301.13     Sec. 13.  Minnesota Statutes 1998, section 122A.60, 
301.14  subdivision 1, is amended to read: 
301.15     Subdivision 1.  [STAFF DEVELOPMENT COMMITTEE.] A school 
301.16  board must use the revenue authorized in section 122A.61 for 
301.17  in-service education for programs under section 120B.22, 
301.18  subdivision 2, or for staff development plans under this 
301.19  section.  The board must establish a staff development committee 
301.20  to develop the plan, assist site decision-making teams in 
301.21  developing a site plan consistent with the goals of the plan, 
301.22  and evaluate staff development efforts at the site level.  A 
301.23  majority of the advisory committee must be teachers representing 
301.24  various grade levels, subject areas, and special education.  The 
301.25  advisory committee must also include nonteaching staff, parents, 
301.26  and administrators.  Districts must report staff development 
301.27  results and expenditures to the commissioner in the form and 
301.28  manner determined by the commissioner.  The expenditure report 
301.29  must include expenditures by the board for district level 
301.30  activities and expenditures made by the staff.  The report must 
301.31  provide a breakdown of expenditures for (1) curriculum 
301.32  development and programs, (2) in-service education, workshops, 
301.33  and conferences, and (3) the cost of teachers or substitute 
301.34  teachers for staff development purposes.  Within each of these 
301.35  categories, the report must also indicate whether the 
301.36  expenditures were incurred at the district level or the school 
302.1   site level, and whether the school site expenditures were made 
302.2   possible by the grants to school sites that demonstrate 
302.3   exemplary use of allocated staff development revenue.  These 
302.4   expenditures are to be reported using the UFARS system.  The 
302.5   commissioner shall report the staff development expenditure data 
302.6   to the education committees of the legislature by February 15 
302.7   each year.  
302.8      Sec. 14.  Minnesota Statutes 1998, section 122A.68, 
302.9   subdivision 1, is amended to read: 
302.10     Subdivision 1.  [ESTABLISHMENT.] A school district with a 
302.11  teaching residency plan approved by the board of teaching may 
302.12  hire graduates of approved Minnesota teacher preparation 
302.13  programs as teaching residents.  A district shall employ each 
302.14  resident for one school year.  The district and the resident may 
302.15  agree to extend the residency for one additional school year.  A 
302.16  school may employ no more than one teaching resident for every 
302.17  eight full-time equivalent licensed teachers.  No more than 600 
302.18  eligible teachers may be employed as teacher residents in any 
302.19  one school year. 
302.20     Sec. 15.  Minnesota Statutes 1998, section 122A.68, 
302.21  subdivision 7, is amended to read: 
302.22     Subd. 7.  [RECOMMENDATION FOR LICENSURE REQUIREMENTS.] The 
302.23  board of teaching must develop maintain for teachers of students 
302.24  in prekindergarten through grade 12, model teaching residency 
302.25  outcomes and assessments, and mentoring programs. 
302.26     Sec. 16.  Minnesota Statutes 1998, section 122A.69, is 
302.27  amended to read: 
302.28     122A.69 [PRACTICE OR STUDENT TEACHERS.] 
302.29     The board may, by agreements with teacher preparing 
302.30  institutions, arrange for classroom experience in the district 
302.31  for practice or student teachers who have completed not less 
302.32  than two years of an approved teacher education program.  Such 
302.33  practice Student teachers must be provided with appropriate 
302.34  supervision by a fully qualified teacher under rules promulgated 
302.35  by the board.  Practice Student teachers are deemed employees of 
302.36  the school district in which they are rendering services for 
303.1   purposes of workers' compensation; liability insurance, if 
303.2   provided for other district employees in accordance with section 
303.3   123B.23; and legal counsel in accordance with the provisions of 
303.4   section 123B.25. 
303.5      Sec. 17.  Minnesota Statutes 1998, section 122A.70, 
303.6   subdivision 2, is amended to read: 
303.7      Subd. 2.  [APPLICATIONS.] The board of teaching must make 
303.8   application forms available to sites interested in developing or 
303.9   expanding a mentorship program.  A school district, a group of 
303.10  school districts, or a coalition of districts, teachers and 
303.11  teacher education institutions may apply for a teacher 
303.12  mentorship program grant.  The board of teaching, in 
303.13  consultation with the teacher mentoring task force, must approve 
303.14  or disapprove the applications.  To the extent possible, the 
303.15  approved applications must reflect effective mentoring 
303.16  components, include a variety of coalitions and be 
303.17  geographically distributed throughout the state.  The board of 
303.18  teaching must encourage the selected sites to consider the use 
303.19  of its assessment procedures.  
303.20     Sec. 18.  Minnesota Statutes 1998, section 122A.91, is 
303.21  amended to read: 
303.22     122A.91 [DESIGNATED STATE OFFICIAL.] 
303.23     For the purposes of the agreement set forth in section 
303.24  122A.90, the designated state official for this state is the 
303.25  commissioner of children, families, and learning executive 
303.26  secretary of the board of teaching. 
303.27     Sec. 19.  Minnesota Statutes 1998, section 122A.92, is 
303.28  amended to read: 
303.29     122A.92 [RECORD OF CONTRACTS.] 
303.30     Two copies of all contracts made on behalf of this state 
303.31  pursuant to the agreement set forth in section 122A.90 must be 
303.32  kept on file in the office of the commissioner of children, 
303.33  families, and learning board of teaching. 
303.34     Sec. 20.  [REVISOR INSTRUCTION.] 
303.35     In the next and subsequent editions of Minnesota Statutes 
303.36  and Minnesota Rules, the revisor of statutes shall renumber 
304.1   Minnesota Statutes, section 122A.61, subdivision 2, as Minnesota 
304.2   Statutes, section 124D.311.  The revisor shall also make 
304.3   necessary cross-reference changes consistent with the 
304.4   renumbering. 
304.5      Sec. 21.  [REPEALER.] 
304.6      Minnesota Statutes 1998, sections 122A.162; 122A.19, 
304.7   subdivision 2; 122A.32; 122A.33; 122A.40, subdivision 6; 
304.8   122A.42; 122A.43, subdivisions 1, 2, 3, 4, and 6; 122A.45; 
304.9   122A.49; 122A.52; 122A.53; 122A.54; 122A.55; 122A.56; 122A.57; 
304.10  122A.71; 122A.72; and 122A.75, are repealed. 
304.11                             ARTICLE 14
304.12               SCHOOL DISTRICTS; FORMS FOR ORGANIZING 
304.13     Section 1.  [REPEALER.] 
304.14     Minnesota Statutes 1998, sections 123A.06, subdivision 3; 
304.15  123A.07; and 123A.15, subdivision 1, are repealed. 
304.16                             ARTICLE 15
304.17                 SCHOOL DISTRICT POWERS AND DUTIES 
304.18     Section 1.  Minnesota Statutes 1998, section 123B.02, 
304.19  subdivision 1, is amended to read: 
304.20     Subdivision 1.  [BOARD AUTHORITY.] The board must have the 
304.21  general charge of the business of the district, the school 
304.22  houses, and of the interests of the schools thereof.  The 
304.23  board's authority to govern, manage, and control the district, 
304.24  to carry out its duties and responsibilities, and to conduct the 
304.25  business of the district includes implied powers in addition to 
304.26  any specific powers granted by the legislature. 
304.27     Sec. 2.  Minnesota Statutes 1998, section 123B.02, 
304.28  subdivision 2, is amended to read: 
304.29     Subd. 2.  [FACILITIES FOR SCHOOL-AGE CHILDREN.] It is the 
304.30  duty and the function of the district to furnish school 
304.31  facilities to every child of school age residing in any part of 
304.32  the district.  The board may establish and organize and alter 
304.33  and discontinue such grades or schools as it may deem advisable 
304.34  and assign to each school and grade a proper number of pupils.  
304.35  The board shall provide free textbooks for the pupils of the 
304.36  district.  
305.1      Sec. 3.  Minnesota Statutes 1998, section 123B.02, 
305.2   subdivision 3, is amended to read: 
305.3      Subd. 3.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
305.4   SUPPORT.] (a) A district must not be required by any type of 
305.5   formal or informal agreement except an agreement to provide 
305.6   building space according to paragraph (f), including a joint 
305.7   powers agreement, or membership in any cooperative unit defined 
305.8   in section 123A.24, subdivision 2, to participate in or provide 
305.9   financial support for the purposes of the agreement for a time 
305.10  period in excess of four fiscal years, or the time period set 
305.11  forth in this subdivision.  Any agreement, part of an agreement, 
305.12  or other type of requirement to the contrary is void. 
305.13     (b) This subdivision shall not affect the continued 
305.14  liability of a district for its share of bonded indebtedness or 
305.15  other debt incurred as a result of any agreement before July 1, 
305.16  1993.  The district is liable only until the obligation or debt 
305.17  is discharged and only according to the payment schedule in 
305.18  effect on July 1, 1993, except that the payment schedule may be 
305.19  altered for the purpose of restructuring debt or refunding bonds 
305.20  outstanding on July 1, 1993, if the annual payments of the 
305.21  district are not increased and if the total obligation of the 
305.22  school district for its share of outstanding bonds or other debt 
305.23  is not increased. 
305.24     (c) To cease participating in or providing financial 
305.25  support for any of the services or activities relating to the 
305.26  agreement or to terminate participation in the agreement, the 
305.27  board must adopt a resolution and notify other parties to the 
305.28  agreement of its decision on or before February 1 of any year.  
305.29  The cessation or withdrawal shall be effective June 30 of the 
305.30  same year except that for a member of an education district 
305.31  organized under sections 123A.15 to 123A.19 or an intermediate 
305.32  district organized under chapter 136D, cessation or withdrawal 
305.33  shall be effective June 30 of the following fiscal year.  At the 
305.34  option of the board, cessation or withdrawal may be effective 
305.35  June 30 of the following fiscal year for a district 
305.36  participating in any type of agreement.  
306.1      (d) Before issuing bonds or incurring other debt, the 
306.2   governing body responsible for implementing the agreement must 
306.3   adopt a resolution proposing to issue bonds or incur other debt 
306.4   and the proposed financial effect of the bonds or other debt 
306.5   upon each participating district.  The resolution must be 
306.6   adopted within a time sufficient to allow the board to adopt a 
306.7   resolution within the time permitted by this paragraph and to 
306.8   comply with the statutory deadlines set forth in sections 
306.9   122A.40, 122A.41, and 123A.33.  The governing body responsible 
306.10  for implementing the agreement shall notify each participating 
306.11  board of the contents of the resolution.  Within 120 days of 
306.12  receiving the resolution of the governing body, the school board 
306.13  of the participating district shall adopt a resolution stating: 
306.14     (1) its concurrence with issuing bonds or incurring other 
306.15  debt; 
306.16     (2) its intention to cease participating in or providing 
306.17  financial support for the service or activity related to the 
306.18  bonds or other debt; or 
306.19     (3) its intention to terminate participation in the 
306.20  agreement. 
306.21     A board adopting a resolution according to clause (1) is 
306.22  liable for its share of bonded indebtedness or other debt as 
306.23  proposed by the governing body implementing the agreement.  A 
306.24  school board adopting a resolution according to clause (2) is 
306.25  not liable for the bonded indebtedness or other debt, as 
306.26  proposed by the governing body, related to the services or 
306.27  activities in which the district ceases participating or 
306.28  providing financial support.  A board adopting a resolution 
306.29  according to clause (3) is not liable for the bonded 
306.30  indebtedness or other debt proposed by the governing body 
306.31  implementing the agreement. 
306.32     (e) After July 1, 1993, A district is liable according to 
306.33  paragraph (d) for its share of bonded indebtedness or other debt 
306.34  incurred by the governing body implementing the agreement to the 
306.35  extent that the bonds or other debt are directly related to the 
306.36  services or activities in which the district participates or for 
307.1   which the district provides financial support.  The district has 
307.2   continued liability only until the obligation or debt is 
307.3   discharged and only according to the payment schedule in effect 
307.4   at the time the governing body implementing the agreement 
307.5   provides notice to the school board, except that the payment 
307.6   schedule may be altered for the purpose of refunding the 
307.7   outstanding bonds or restructuring other debt if the annual 
307.8   payments of the district are not increased and if the total 
307.9   obligation of the district for the outstanding bonds or other 
307.10  debt is not increased. 
307.11     (f) A district that is a member of a cooperative unit as 
307.12  defined in section 123A.24, subdivision 2, may obligate itself 
307.13  to participate in and provide financial support for an agreement 
307.14  with a cooperative unit to provide school building space for a 
307.15  term not to exceed two years with an option on the part of the 
307.16  district to renew for an additional two years.  
307.17     (g) Notwithstanding any limitations imposed under this 
307.18  subdivision, a school district may, according to section 
307.19  123B.51, subdivision 4, enter into a lease of all or a portion 
307.20  of a schoolhouse that is not needed for school purposes, 
307.21  including, but not limited to, a lease with a term of more than 
307.22  one year. 
307.23     Sec. 4.  Minnesota Statutes 1998, section 123B.04, 
307.24  subdivision 2, is amended to read: 
307.25     Subd. 2.  [AGREEMENT.] (a) Either the school board or 
307.26  the school site decision-making team may request that the school 
307.27  board enter into an agreement with a school site decision-making 
307.28  team concerning the governance, management, or control of the 
307.29  school.  A school site decision-making team may include the 
307.30  school principal, teachers in the school or their designee, 
307.31  other employees in the school, parents of pupils in the school, 
307.32  representatives of pupils in the school, or other members in the 
307.33  community.  The school site decision-making team shall include 
307.34  the school principal or other person having general control and 
307.35  supervision of the school.  A school district must provide 
307.36  notice to parents about site decision-making teams and inform 
308.1   parents about how to be involved with the site decision-making 
308.2   team.  The site decision-making team must reflect the diversity 
308.3   of the student body of the education site.  No more than 
308.4   one-half of the members shall be employees of the district. 
308.5      (b) School site decision-making agreements must delegate 
308.6   powers, duties, and broad management responsibilities to site 
308.7   teams and involve staff members, students as appropriate, and 
308.8   parents in decision making. 
308.9      (c) An agreement shall include a statement of powers, 
308.10  duties, responsibilities, and authority to be delegated to and 
308.11  within the site. 
308.12     (d) An agreement may include: 
308.13     (1) an achievement contract according to subdivision 4; 
308.14     (2) a mechanism to allow principals, or other persons 
308.15  having general control and supervision of the school, to make 
308.16  decisions regarding how financial and personnel resources are 
308.17  best allocated at the site and from whom goods or services are 
308.18  purchased; 
308.19     (3) a mechanism to implement parental involvement programs 
308.20  under section 124D.895 and to provide for effective parental 
308.21  communication and feedback on this involvement at the site 
308.22  level; 
308.23     (4) a provision that would allow the team to determine who 
308.24  is hired into licensed and nonlicensed positions; 
308.25     (5) a provision that would allow teachers to choose the 
308.26  principal or other person having general control; 
308.27     (6) an amount of revenue allocated to the site under 
308.28  subdivision 3; and 
308.29     (7) any other powers and duties determined appropriate by 
308.30  the board. 
308.31     The school board of the district remains the legal employer 
308.32  under clauses (4) and (5). 
308.33     (e) Any powers or duties not delegated to the school site 
308.34  management team in the school site management agreement shall 
308.35  remain with the school board. 
308.36     (f) Approved agreements shall be filed with the 
309.1   commissioner.  If a school board denies a request to enter into 
309.2   a school site management agreement, it shall provide a copy of 
309.3   the request and the reasons for its denial to the commissioner.  
309.4      Sec. 5.  Minnesota Statutes 1998, section 123B.04, 
309.5   subdivision 5, is amended to read: 
309.6      Subd. 5.  [COMMISSIONER'S ROLE.] The commissioner of 
309.7   children, families, and learning, in consultation with 
309.8   appropriate educational organizations, shall:, 
309.9      (1) upon request, provide technical support for districts 
309.10  and sites with agreements under this section; 
309.11     (2) conduct and compile research on the effectiveness of 
309.12  site decision making; and 
309.13     (3) periodically report on and evaluate the effectiveness 
309.14  of site management agreements on a statewide basis. 
309.15     Sec. 6.  Minnesota Statutes 1998, section 123B.09, 
309.16  subdivision 8, is amended to read: 
309.17     Subd. 8.  [DUTIES.] The board must superintend and manage 
309.18  the schools of the district; adopt rules for their organization, 
309.19  government, and instruction; keep registers; and prescribe 
309.20  textbooks and courses of study.  The board may enter into an 
309.21  agreement with a post-secondary institution for secondary or 
309.22  post-secondary nonsectarian courses to be taught at a secondary 
309.23  school, nonsectarian post-secondary institution, or another 
309.24  location. 
309.25     Sec. 7.  Minnesota Statutes 1998, section 123B.143, 
309.26  subdivision 1, is amended to read: 
309.27     Subdivision 1.  [CONTRACT; DUTIES.] All districts 
309.28  maintaining a classified secondary school must employ a 
309.29  superintendent who shall be an ex officio nonvoting member of 
309.30  the school board.  The authority for selection and employment of 
309.31  a superintendent must be vested in the board in all cases.  An 
309.32  individual employed by a board as a superintendent shall have an 
309.33  initial employment contract for a period of time no longer than 
309.34  three years from the date of employment.  Any subsequent 
309.35  employment contract must not exceed a period of three years.  A 
309.36  board, at its discretion, may or may not renew an employment 
310.1   contract.  A board must not, by action or inaction, extend the 
310.2   duration of an existing employment contract.  Beginning 365 days 
310.3   prior to the expiration date of an existing employment contract, 
310.4   a board may negotiate and enter into a subsequent employment 
310.5   contract to take effect upon the expiration of the existing 
310.6   contract.  A subsequent contract must be contingent upon the 
310.7   employee completing the terms of an existing contract.  If a 
310.8   contract between a board and a superintendent is terminated 
310.9   prior to the date specified in the contract, the board may not 
310.10  enter into another superintendent contract with that same 
310.11  individual that has a term that extends beyond the date 
310.12  specified in the terminated contract.  A board may terminate a 
310.13  superintendent during the term of an employment contract for any 
310.14  of the grounds specified in section 122A.40, subdivision 9 or 13.
310.15  A superintendent shall not rely upon an employment contract with 
310.16  a board to assert any other continuing contract rights in the 
310.17  position of superintendent under section 122A.40.  
310.18  Notwithstanding the provisions of sections 122A.40, subdivision 
310.19  10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 
310.20  individual shall have a right to employment as a superintendent 
310.21  based on order of employment in any district.  If two or more 
310.22  districts enter into an agreement for the purchase or sharing of 
310.23  the services of a superintendent, the contracting districts have 
310.24  the absolute right to select one of the individuals employed to 
310.25  serve as superintendent in one of the contracting districts and 
310.26  no individual has a right to employment as the superintendent to 
310.27  provide all or part of the services based on order of employment 
310.28  in a contracting district. The superintendent of a district 
310.29  shall perform the following:  
310.30     (1) visit and supervise the schools in the district, report 
310.31  and make recommendations about their condition when advisable or 
310.32  on request by the board; 
310.33     (2) recommend to the board employment and dismissal of 
310.34  teachers; 
310.35     (3) superintend school grading practices and examinations 
310.36  for promotions; 
311.1      (4) make reports required by the commissioner; 
311.2      (5) (2) by January 10, submit an annual report to the 
311.3   commissioner in a manner prescribed by the commissioner, in 
311.4   consultation with school districts, identifying the expenditures 
311.5   that the district requires to ensure an 80 percent and a 90 
311.6   percent student passage rate on the basic standards test taken 
311.7   in the eighth grade, identifying the amount of expenditures that 
311.8   the district requires to ensure a 99 percent student passage 
311.9   rate on the basic standards test by 12th grade, and how much the 
311.10  district is cross-subsidizing programs with special education, 
311.11  compensatory, and general education revenue; and 
311.12     (6) (3) perform other duties prescribed by the board. 
311.13     Sec. 8.  Minnesota Statutes 1998, section 123B.36, 
311.14  subdivision 1, is amended to read: 
311.15     Subdivision 1.  [SCHOOL BOARDS MAY REQUIRE FEES.] A school 
311.16  board is authorized to require payment of fees in the following 
311.17  areas: 
311.18     (1) in any program where the resultant product, in excess 
311.19  of minimum requirements and at the pupil's option, becomes the 
311.20  personal property of the pupil; 
311.21     (2) admission fees or charges for extra curricular 
311.22  activities, where attendance is optional and where the admission 
311.23  fees or charges a student must pay to attend or participate in 
311.24  an extracurricular activity is the same for all students, 
311.25  regardless of whether the student is enrolled in a public or a 
311.26  home school; 
311.27     (3) a security deposit for the return of materials, 
311.28  supplies, or equipment; 
311.29     (4) personal physical education and athletic equipment and 
311.30  apparel, although any pupil may personally provide it if it 
311.31  meets reasonable requirements and standards relating to health 
311.32  and safety established by the board; 
311.33     (5) items of personal use or products that a student has an 
311.34  option to purchase such as student publications, class rings, 
311.35  annuals, and graduation announcements; 
311.36     (6) fees specifically permitted by any other statute, 
312.1   including but not limited to section 171.05, subdivision 2; 
312.2   provided (i) driver education fees do not exceed the actual cost 
312.3   to the school and school district of providing driver education, 
312.4   and (ii) the driver education courses are open to enrollment to 
312.5   persons between the ages of 15 and 18 who reside or attend 
312.6   school in the school district; 
312.7      (7) field trips considered supplementary to a district 
312.8   educational program; 
312.9      (8) any authorized voluntary student health and accident 
312.10  benefit plan; 
312.11     (9) for the use of musical instruments owned or rented by 
312.12  the district, a reasonable rental fee not to exceed either the 
312.13  rental cost to the district or the annual depreciation plus the 
312.14  actual annual maintenance cost for each instrument; 
312.15     (10) transportation of pupils to and from extra curricular 
312.16  activities conducted at locations other than school, where 
312.17  attendance is optional; 
312.18     (11) transportation of pupils to and from school for which 
312.19  aid for fiscal year 1996 is not authorized under Minnesota 
312.20  Statutes 1994, section 124.223, subdivision 1, and for which 
312.21  levy for fiscal year 1996 is not authorized under Minnesota 
312.22  Statutes 1994, section 124.226, subdivision 5, if a district 
312.23  charging fees for transportation of pupils establishes 
312.24  guidelines for that transportation to ensure that no pupil is 
312.25  denied transportation solely because of inability to pay; 
312.26     (12) motorcycle vehicle safety classroom education courses 
312.27  conducted outside of regular school hours; provided the charge 
312.28  must not exceed the actual cost of these courses to the school 
312.29  district; 
312.30     (13) transportation to and from post-secondary institutions 
312.31  for pupils enrolled under the post-secondary enrollment options 
312.32  program under section 123B.88, subdivision 22.  Fees collected 
312.33  for this service must be reasonable and must be used to reduce 
312.34  the cost of operating the route.  Families who qualify for 
312.35  mileage reimbursement under section 124D.09, subdivision 22, may 
312.36  use their state mileage reimbursement to pay this fee.  If no 
313.1   fee is charged, districts must allocate costs based on the 
313.2   number of pupils riding the route; and 
313.3      (14) admission fees or charges to a part-time student who 
313.4   is over the age of 21 or who has graduated from high school for 
313.5   attending a class or a program at a secondary school. 
313.6      Sec. 9.  Minnesota Statutes 1998, section 123B.43, is 
313.7   amended to read: 
313.8      123B.43 [USE OF INDIVIDUALIZED INSTRUCTIONAL MATERIALS.] 
313.9      (a) The commissioner shall assure that textbooks and 
313.10  individualized instructional materials loaned to nonpublic 
313.11  school pupils are secular, neutral, nonideological and that they 
313.12  are incapable of diversion for religious use.  
313.13     (b) Textbooks and individualized instructional materials 
313.14  must not be used in religious courses, devotional exercises, 
313.15  religious training or any other religious activity.  
313.16     (c) Textbooks and individualized instructional materials 
313.17  must be loaned only to individual pupils upon the request of a 
313.18  parent or guardian or the pupil on a form designated for this 
313.19  use by the commissioner.  The request forms shall provide for 
313.20  verification by the parent or guardian or pupil that the 
313.21  requested textbooks and individualized instructional materials 
313.22  are for the use of the individual pupil in connection with a 
313.23  program of instruction in the pupil's elementary or secondary 
313.24  school.  
313.25     (d) The servicing school district or the intermediary 
313.26  service area must take adequate measures to ensure an accurate 
313.27  and periodic inventory of all textbooks and individualized 
313.28  instructional materials loaned to elementary and secondary 
313.29  school pupils attending nonpublic schools.  The state board of 
313.30  education shall promulgate rules under the provisions of chapter 
313.31  14 to terminate the eligibility of any nonpublic school pupil if 
313.32  the commissioner determines, after notice and opportunity for 
313.33  hearing, that the textbooks or individualized instructional 
313.34  materials have been used in a manner contrary to the provisions 
313.35  of section 123B.41, subdivision 5, 123B.42, or this section or 
313.36  any rules promulgated by the state board of education. 
314.1      (e) Nothing contained in section 123B.41, subdivision 5, 
314.2   123B.42, or this section shall be construed to authorize the 
314.3   making of any payments to a nonpublic school or its faculty, 
314.4   staff or administrators for religious worship or instruction or 
314.5   for any other purpose.  
314.6      Sec. 10.  Minnesota Statutes 1998, section 123B.445, is 
314.7   amended to read: 
314.8      123B.445 [NONPUBLIC EDUCATION COUNCIL.] 
314.9      (a) The commissioner shall appoint a 15-member council on 
314.10  nonpublic education, with the advice and consent of the senate.  
314.11  The 15 members shall represent various areas of the state, 
314.12  represent various methods of providing nonpublic education, and 
314.13  shall be knowledgeable about nonpublic education.  The 
314.14  compensation, removal of members, filling of vacancies, and 
314.15  terms are governed by section 15.0575.  The council shall not 
314.16  expire.  The councill council shall advise the commissioner and 
314.17  the state board on issues affecting nonpublic education and 
314.18  nonpublic schools.  The council may recognize educational 
314.19  accrediting agencies, for the sole purpose of sections 120A.22, 
314.20  120A.24, and 120A.26. 
314.21     (b) A parent or guardian of a nonpublic school pupil or a 
314.22  nonpublic school may file a complaint about services provided 
314.23  under sections 123B.40 to 123B.42, and 123B.44 to 123B.48 with 
314.24  the nonpublic education council.  The council may review the 
314.25  complaint and make a recommendation for resolution to the 
314.26  commissioner. 
314.27     Sec. 11.  Minnesota Statutes 1998, section 123B.49, 
314.28  subdivision 1, is amended to read: 
314.29     Subdivision 1.  [ACTIVITIES OUTSIDE DISTRICT LIMITS.] 
314.30  Whenever it appears to be beneficial and for the best interest 
314.31  of the district and the pupils of the district to carry on any 
314.32  school sport activities or educational activities connected with 
314.33  their studies outside of the territorial limits of the district, 
314.34  The board may authorize such activities to be conducted outside 
314.35  of the territorial limits of the district under such rules and 
314.36  regulations as the board deems sufficient.  The district may pay 
315.1   all necessary costs therefor including transportation from the 
315.2   district funds available. 
315.3      Sec. 12.  Minnesota Statutes 1998, section 123B.49, 
315.4   subdivision 4, is amended to read: 
315.5      Subd. 4.  [BOARD CONTROL AUTHORIZATION OF EXTRACURRICULAR 
315.6   ACTIVITIES.] (a) The board may take charge of and control 
315.7   authorize all extracurricular activities of the teachers and 
315.8   children of the public schools in the district.  Extracurricular 
315.9   activities means all direct and personal services for public 
315.10  school pupils for their enjoyment that are managed and operated 
315.11  under the guidance of an adult or staff member.  
315.12     (b) Extracurricular activities have all of the following 
315.13  characteristics: 
315.14     (1) they are not offered for school credit nor required for 
315.15  graduation; 
315.16     (2) they are generally conducted outside school hours, or 
315.17  if partly during school hours, at times agreed by the 
315.18  participants, and approved by school authorities; 
315.19     (3) the content of the activities is determined primarily 
315.20  by the pupil participants under the guidance of a staff member 
315.21  or other adult. 
315.22     (c) If the board does not take charge of and control 
315.23  authorize extracurricular activities, these activities shall be 
315.24  self-sustaining with all expenses, except direct salary costs 
315.25  and indirect costs of the use of school facilities, met by dues, 
315.26  admissions, or other student fundraising events.  The general 
315.27  fund must reflect only those salaries directly related to and 
315.28  readily identified with the activity and paid by public funds.  
315.29  Other revenues and expenditures for extra curricular activities 
315.30  must be recorded according to the "Manual of Instruction for 
315.31  Uniform Student Activities Accounting for Minnesota School 
315.32  Districts and Area Vocational-Technical Colleges."  
315.33  Extracurricular activities not under board control must have an 
315.34  annual financial audit and must also be audited annually for 
315.35  compliance with this section. 
315.36     (d) If the board takes charge of and controls authorizes 
316.1   extracurricular activities, any or all costs of these activities 
316.2   may be provided from school revenues and all revenues and 
316.3   expenditures for these activities shall be recorded in the same 
316.4   manner as other revenues and expenditures of the district.  
316.5      (e) If the board takes charge of and controls authorizes 
316.6   extracurricular activities, the teachers or pupils in the 
316.7   district must not participate in such activity, nor shall the 
316.8   school name or any allied name be used in connection therewith, 
316.9   except by consent and direction of the board. 
316.10     Sec. 13.  Minnesota Statutes 1998, section 123B.51, 
316.11  subdivision 1, is amended to read: 
316.12     Subdivision 1.  [SITES.] According to section 126C.40, 
316.13  subdivision 1, or 465.71, when funds are available, the board 
316.14  may locate and acquire necessary sites of schoolhouses schools 
316.15  or enlargements, or additions to existing schoolhouse sites 
316.16  schools by lease, purchase or condemnation under the right of 
316.17  eminent domain; it may erect schoolhouses schools on the sites; 
316.18  it may erect or purchase garages for district-owned school 
316.19  buses.  When property is taken by eminent domain by authority of 
316.20  this subdivision when needed by the district for such purposes, 
316.21  the fact that the property has been acquired by the owner under 
316.22  the power of eminent domain or is already devoted to public use, 
316.23  shall not prevent its acquisition by the district.  The board 
316.24  may sell or exchange schoolhouses schools or sites, and execute 
316.25  deeds of conveyance thereof.  
316.26     Sec. 14.  Minnesota Statutes 1998, section 123B.51, 
316.27  subdivision 5, is amended to read: 
316.28     Subd. 5.  [SCHOOLHOUSE SCHOOL CLOSING.] The board may close 
316.29  a schoolhouse school only after a public hearing on the question 
316.30  of the necessity and practicability of the proposed closing.  
316.31  Published notice of the hearing shall be given for two weeks in 
316.32  the official newspaper of the district.  The time and place of 
316.33  the meeting, the description and location of the schoolhouse 
316.34  school, and a statement of the reasons for the closing must be 
316.35  specified in the notice.  Parties requesting to give testimony 
316.36  for and against the proposal shall be heard by the board before 
317.1   it makes a final decision to close or not to close 
317.2   the schoolhouse school.  
317.3      Sec. 15.  Minnesota Statutes 1998, section 123B.73, 
317.4   subdivision 1, is amended to read: 
317.5      Subdivision 1.  [INSPECTION.] The commissioner and the 
317.6   state fire marshal shall develop a plan to inspect once every 
317.7   three years every public school facility used for educational 
317.8   purposes shall contract with the fire marshal to conduct fire 
317.9   safety inspections of all school buildings.  Each school 
317.10  facility shall be inspected once every three years or more 
317.11  frequently at the request of the school district or the 
317.12  commissioner.  Inspections must begin during the 1990-1991 
317.13  school year.  The plan must provide for continued inspection by 
317.14  local units of government of public school facilities that have 
317.15  been inspected by a local unit of government between January 1, 
317.16  1987, and January 1, 1990, and may provide for inspections by 
317.17  local units of government in other situations.  Each inspection 
317.18  report must be filed with the commissioner, the local school 
317.19  board, and the state fire marshal.  Notwithstanding section 
317.20  299F.011, subdivisions 5a and 5b, a variance from the code must 
317.21  be approved by the state fire marshal before taking effect.  The 
317.22  state board may request that the state fire marshal inspect a 
317.23  particular school facility. 
317.24     Sec. 16.  Minnesota Statutes 1998, section 123B.83, 
317.25  subdivision 1, is amended to read: 
317.26     Subdivision 1.  [REDUCE STATUTORY OPERATING DEBT.] (a) 
317.27  Beginning in fiscal year 1978 and in each year thereafter, A 
317.28  district which had statutory operating debt on June 30, 1977 
317.29  pursuant to section 126C.42 must limit its expenditures in each 
317.30  fiscal year so that the amount of its statutory operating debt 
317.31  calculated at the end of that fiscal year is not greater than 
317.32  the amount of the district's statutory operating debt as of June 
317.33  30, 1977, as certified and adjusted by the commissioner, 
317.34  increased by an amount equal to 2-1/2 percent of that district's 
317.35  operating expenditures for the fiscal year for which the 
317.36  statutory operating debt calculation is being made. 
318.1      (b) When a district is no longer required to levy pursuant 
318.2   to section 126C.42, subdivision 1, subdivision 2 is applicable. 
318.3      Sec. 17.  Minnesota Statutes 1998, section 123B.90, 
318.4   subdivision 1, is amended to read: 
318.5      Subdivision 1.  [SCHOOL BUS SAFETY WEEK.] The third week of 
318.6   school is designated as school bus safety week. 
318.7      A school board may designate one day of school bus safety 
318.8   week as school bus driver day. 
318.9      Sec. 18.  Minnesota Statutes 1998, section 123B.90, 
318.10  subdivision 2, is amended to read: 
318.11     Subd. 2.  [STUDENT TRAINING.] (a) Each district must 
318.12  provide public school pupils enrolled in grades kindergarten 
318.13  through 10 with age-appropriate school bus safety training.  The 
318.14  training must be results-oriented and shall consist of both 
318.15  classroom instruction and practical training using a school 
318.16  bus.  Upon completing the training, a student shall be able to 
318.17  demonstrate knowledge and understanding of at least the 
318.18  following competencies and concepts: 
318.19     (1) transportation by school bus is a privilege and not a 
318.20  right; 
318.21     (2) district policies for student conduct and school bus 
318.22  safety; 
318.23     (3) appropriate conduct while on the school bus; 
318.24     (4) the danger zones surrounding a school bus; 
318.25     (5) procedures for safely boarding and leaving a school 
318.26  bus; 
318.27     (6) procedures for safe street or road crossing; and 
318.28     (7) school bus evacuation and other emergency procedures. 
318.29     (b) Each nonpublic school located within the district must 
318.30  provide all nonpublic school pupils enrolled in grades 
318.31  kindergarten through 10 who are transported by school bus at 
318.32  public expense and attend school within the district's 
318.33  boundaries with training as required in paragraph (a).  The 
318.34  school district shall make a bus available for the practical 
318.35  training if the district transports the nonpublic students.  
318.36  Each nonpublic school shall provide the instruction. 
319.1      (c) All students enrolled in grades kindergarten through 3 
319.2   who are transported by school bus and are enrolled during the 
319.3   first or second week of school must demonstrate achievement of 
319.4   the school bus safety training competencies by the end of the 
319.5   third week of school.  All students enrolled in grades 4 through 
319.6   10 who are transported by school bus and are enrolled during the 
319.7   first or second week of school must demonstrate achievement of 
319.8   the competencies by the end of the sixth week of school.  
319.9   Students enrolled in grades kindergarten through 10 who enroll 
319.10  in a school after the second week of school and are transported 
319.11  by school bus shall undergo school bus safety training and 
319.12  demonstrate achievement of the school bus safety competencies 
319.13  within four weeks of the first day of attendance.  The pupil 
319.14  transportation safety director in each district must certify to 
319.15  the commissioner annually that all students transported by 
319.16  school bus within the district have satisfactorily demonstrated 
319.17  knowledge and understanding of the school bus safety 
319.18  competencies according to this section or provide an explanation 
319.19  for a student's failure to demonstrate the competencies.  The 
319.20  principal or other chief administrator of each nonpublic school 
319.21  must certify annually to the public transportation safety 
319.22  director of the district in which the school is located that all 
319.23  of the school's students transported by school bus at public 
319.24  expense have received training.  A district may deny 
319.25  transportation to a student who fails to demonstrate the 
319.26  competencies, unless the student is unable to achieve the 
319.27  competencies due to a disability, or to a student who attends a 
319.28  nonpublic school that fails to provide training as required by 
319.29  this subdivision. 
319.30     (d) A district and a nonpublic school with students 
319.31  transported by school bus at public expense must, to the extent 
319.32  possible, provide kindergarten pupils with bus safety training 
319.33  before the first day of school. 
319.34     (e) A district and a nonpublic school with students 
319.35  transported by school bus at public expense must also provide 
319.36  student safety education for bicycling and pedestrian safety, 
320.1   for students enrolled in grades kindergarten through 5. 
320.2      (f) (d) A district and a nonpublic school with students 
320.3   transported by school bus at public expense must make reasonable 
320.4   accommodations for the school bus, bicycle, and pedestrian 
320.5   safety training of pupils known to speak English as a second 
320.6   language and pupils with disabilities. 
320.7      Sec. 19.  Minnesota Statutes 1998, section 123B.91, 
320.8   subdivision 1, is amended to read: 
320.9      Subdivision 1.  [COMPREHENSIVE POLICY.] Each district must 
320.10  develop and implement a comprehensive, written policy governing 
320.11  pupil transportation safety, including transportation of 
320.12  nonpublic school students, when applicable.  The policy shall, 
320.13  at minimum, contain: 
320.14     (1) provisions for appropriate student bus safety training 
320.15  under section 123B.90; 
320.16     (2) rules governing student conduct on school buses and in 
320.17  school bus loading and unloading areas; 
320.18     (3) a statement of parent or guardian responsibilities 
320.19  relating to school bus safety; 
320.20     (4) provisions for notifying students and parents or 
320.21  guardians of their responsibilities and the rules; 
320.22     (5) an intradistrict system for reporting school bus 
320.23  accidents or misconduct and a system for dealing with local law 
320.24  enforcement officials in cases of criminal conduct on a school 
320.25  bus; 
320.26     (6) a discipline policy to address violations of school bus 
320.27  safety rules, including procedures for revoking a student's bus 
320.28  riding privileges in cases of serious or repeated misconduct; 
320.29     (7) a system for integrating school bus misconduct records 
320.30  with other discipline records; 
320.31     (8) a statement of bus driver duties; 
320.32     (9) planned expenditures for safety activities under 
320.33  section 123B.89 and, where applicable, provisions governing bus 
320.34  monitor qualifications, training, and duties; 
320.35     (10) rules governing the use and maintenance of type III 
320.36  vehicles, drivers of type III vehicles, qualifications to drive 
321.1   a type III vehicle, qualifications for a type III vehicle and 
321.2   the circumstances under which a student may be transported in a 
321.3   type III vehicle; 
321.4      (11) operating rules and procedures; 
321.5      (12) provisions for annual bus driver in-service training 
321.6   and evaluation; 
321.7      (13) emergency procedures; 
321.8      (14) a system for maintaining and inspecting equipment; 
321.9      (15) requirements of the school district, if any, that 
321.10  exceed state law minimum requirements for school bus operations; 
321.11  and 
321.12     (16) requirements for basic first aid training, which must 
321.13  include the Heimlich maneuver and procedures for dealing with 
321.14  obstructed airways, shock, bleeding, and seizures. 
321.15     Districts are encouraged to use the model policy developed 
321.16  by the Minnesota school boards association, the department of 
321.17  public safety, and the department of children, families, and 
321.18  learning, as well as the current edition of the "National 
321.19  Standards for School Buses and Operations" published by the 
321.20  National Safety Council, in developing safety policies.  Each 
321.21  district shall review its policy annually and make appropriate 
321.22  amendments, which must be submitted to the school bus safety 
321.23  advisory committee within one month of approval by the school 
321.24  board. 
321.25     Sec. 20.  Minnesota Statutes 1998, section 123B.92, 
321.26  subdivision 2, is amended to read: 
321.27     Subd. 2.  [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 
321.28  district must may reserve an amount equal to the greater of $500 
321.29  or $1.50 times the number of adjusted pupil units, for that 
321.30  school year to provide student transportation safety programs 
321.31  under section 123B.89.  This revenue may only be used if the 
321.32  district complies with the reporting requirements of section 
321.33  123B.90, 123B.91, 169.4582, or 171.321, subdivision 5. 
321.34     Sec. 21.  Minnesota Statutes 1998, section 123B.92, 
321.35  subdivision 4, is amended to read: 
321.36     Subd. 4.  [TRANSPORTATION SAFETY AID.] A district's 
322.1   transportation safety aid equals the district's reserved revenue 
322.2   for transportation safety under subdivision 2 for that school 
322.3   year.  Failure of a district to comply with the reporting 
322.4   requirements of section 123B.90, 123B.91, 169.4582, or 171.321, 
322.5   subdivision 5, may result in a withholding of that district's 
322.6   transportation safety aid for that school year. 
322.7      Sec. 22.  [REPEALER.] 
322.8      Minnesota Statutes 1998, sections 123B.02, subdivisions 5, 
322.9   6, 9, 10, 11, 13, and 16; 123B.04, subdivision 4; 123B.11; 
322.10  123B.147, subdivisions 1 and 3; 123B.15; 123B.16; 123B.17; 
322.11  123B.18; 123B.19; 123B.40; 123B.49, subdivisions 2 and 3; 
322.12  123B.51, subdivisions 2, 3, and 4; 123B.744; 123B.84; 123B.87; 
322.13  123B.88, subdivisions 11, 12, 13, 18, 20, 21, and 22; 123B.93; 
322.14  and 123B.95, subdivision 3, are repealed. 
322.15                             ARTICLE 16
322.16                         EDUCATION PROGRAMS 
322.17     Section 1.  Minnesota Statutes 1998, section 124D.02, 
322.18  subdivision 1, is amended to read: 
322.19     Subdivision 1.  [KINDERGARTEN INSTRUCTION.] The board may 
322.20  establish and maintain one or more kindergartens for the 
322.21  instruction of children and after July 1, 1974, shall provide 
322.22  must make kindergarten instruction available for all eligible 
322.23  children, either in the district or in another district.  All 
322.24  children to be eligible Eligibility for kindergarten must be at 
322.25  least five years of age on September 1 of the calendar year in 
322.26  which the school year commences.  In addition all children 
322.27  selected under an early admissions policy established by the 
322.28  school board may be admitted.  Nothing in this section shall 
322.29  prohibit a school district from establishing head start, 
322.30  prekindergarten, or nursery school classes for children below 
322.31  kindergarten age determined according to section 120A.20, 
322.32  subdivision 1.  Any school board with evidence that providing 
322.33  kindergarten will cause an extraordinary hardship on the school 
322.34  district may apply to the commissioner of children, families, 
322.35  and learning for an exception. 
322.36     Sec. 2.  Minnesota Statutes 1998, section 124D.03, 
323.1   subdivision 3, is amended to read: 
323.2      Subd. 3.  [PUPIL APPLICATION PROCEDURES.] In order that a 
323.3   pupil may attend a school or program in a nonresident district, 
323.4   the pupil's parent or guardian must submit an application to the 
323.5   nonresident district.  Before submitting an application, the 
323.6   pupil and the pupil's parent or guardian must explore with a 
323.7   school guidance counselor, or other appropriate staff member 
323.8   employed by the district the pupil is currently attending, the 
323.9   pupil's academic or other reason for applying to enroll in a 
323.10  nonresident district.  The pupil's application must identify the 
323.11  reason for enrolling in the nonresident district.  The parent or 
323.12  guardian of a pupil must submit an application by January 
323.13  15 June 1 for initial enrollment beginning the following school 
323.14  year.  The application must be on a form provided by the 
323.15  department of children, families, and learning.  A particular 
323.16  school or program may be requested by the parent.  Once enrolled 
323.17  in a nonresident district, the pupil may remain enrolled and is 
323.18  not required to submit annual or periodic applications.  To 
323.19  return to the resident district or to transfer to a different 
323.20  nonresident district, the parent or guardian of the pupil must 
323.21  provide notice to the resident district or apply to a different 
323.22  nonresident district by January 15 June 1 for enrollment 
323.23  beginning the following school year.  Each district must accept 
323.24  or reject an application it receives and notify the parent or 
323.25  guardian in writing within 30 calendar days of receiving the 
323.26  application.  A notification of acceptance must include the date 
323.27  enrollment can begin.  Within ten days of receiving the 
323.28  notification from the nonresident district, the parent or 
323.29  guardian must inform the nonresident district whether the pupil 
323.30  intends to enroll in the nonresident district. 
323.31     Sec. 3.  Minnesota Statutes 1998, section 124D.09, 
323.32  subdivision 5, is amended to read: 
323.33     Subd. 5.  [AUTHORIZATION; NOTIFICATION.] Notwithstanding 
323.34  any other law to the contrary, An 11th or 12th grade pupil 
323.35  enrolled in a school or an American Indian-controlled tribal 
323.36  contract or grant school eligible for aid under section 124D.83, 
324.1   except a foreign exchange pupil enrolled in a district under a 
324.2   cultural exchange program, may apply to an eligible institution, 
324.3   as defined in subdivision 3, to enroll in nonsectarian courses 
324.4   offered by that post-secondary institution.  If an institution 
324.5   accepts a secondary pupil for enrollment under this section, the 
324.6   institution shall send written notice to the pupil, the pupil's 
324.7   school or school district, and the commissioner within ten days 
324.8   of acceptance.  The notice must indicate the course and hours of 
324.9   enrollment of that pupil.  If the pupil enrolls in a course for 
324.10  post-secondary credit, the institution must notify the pupil 
324.11  about payment in the customary manner used by the institution. 
324.12     Sec. 4.  Minnesota Statutes 1998, section 124D.09, 
324.13  subdivision 6, is amended to read: 
324.14     Subd. 6.  [COUNSELING PARENTAL CONSENT.] To the extent 
324.15  possible, the school or school district must provide counseling 
324.16  services to pupils and their parents or guardian before the 
324.17  pupils enroll in courses under this section to ensure that the 
324.18  pupils and their parents or guardian are fully aware of the 
324.19  risks and possible consequences of enrolling in post-secondary 
324.20  courses.  The school or school district must provide information 
324.21  on the program including who may enroll, what institutions and 
324.22  courses are eligible for participation, the decision-making 
324.23  process for granting academic credits, financial arrangements 
324.24  for tuition, books and materials, eligibility criteria for 
324.25  transportation aid, available support services, the need to 
324.26  arrange an appropriate schedule, consequences of failing or not 
324.27  completing a course in which the pupil enrolls, the effect of 
324.28  enrolling in this program on the pupil's ability to complete the 
324.29  required high school graduation requirements, and the academic 
324.30  and social responsibilities that must be assumed by the pupils 
324.31  and their parents or guardian.  The person providing counseling 
324.32  shall encourage pupils and their parents or guardian to also use 
324.33  available counseling services at the post-secondary institutions 
324.34  before the quarter or semester of enrollment to ensure that 
324.35  anticipated plans are appropriate.  
324.36     Prior to enrolling in a course, the pupil and the pupil's 
325.1   parents or guardian must sign a form that must be provided by 
325.2   the school or school district and may be obtained from a 
325.3   post-secondary institution stating that they have received the 
325.4   information specified in this subdivision and that they 
325.5   understand the responsibilities that must be assumed in 
325.6   enrolling in this program.  The department must, upon request, 
325.7   provide technical assistance to a school or school district in 
325.8   developing appropriate forms and counseling guidelines. 
325.9      Sec. 5.  Minnesota Statutes 1998, section 124D.09, 
325.10  subdivision 7, is amended to read: 
325.11     Subd. 7.  [DISSEMINATION OF INFORMATION; NOTIFICATION OF 
325.12  INTENT TO ENROLL.] By March 1 of each year, A district must 
325.13  adopt policies for deadlines and provide general information 
325.14  about the program to all pupils in grades 10 and 11.  To assist 
325.15  the district in planning, a pupil shall inform the district by 
325.16  March 30 of each year of the pupil's intent to enroll in 
325.17  post-secondary courses during the following school year.  A 
325.18  pupil is not bound by notifying or not notifying the district by 
325.19  March 30.  
325.20     Sec. 6.  Minnesota Statutes 1998, section 124D.09, 
325.21  subdivision 12, is amended to read: 
325.22     Subd. 12.  [CREDITS.] A pupil may enroll in a course under 
325.23  this section for either secondary credit or post-secondary 
325.24  credit.  At the time a pupil enrolls in a course, the pupil 
325.25  shall designate whether the course is for secondary or 
325.26  post-secondary credit.  A pupil taking several courses may 
325.27  designate some for secondary credit and some for post-secondary 
325.28  credit.  A pupil must not audit a course under this section. 
325.29     A district shall grant academic credit to a pupil enrolled 
325.30  in a course for secondary credit if the pupil successfully 
325.31  completes the course.  Seven quarter or four semester college 
325.32  credits equal at least one full year of high school credit.  
325.33  Fewer college credits may be prorated.  A district must also 
325.34  grant academic credit to a pupil enrolled in a course for 
325.35  post-secondary credit if secondary credit is requested by a 
325.36  pupil.  If no comparable course is offered by the district, the 
326.1   district must, as soon as possible, notify the commissioner, who 
326.2   shall determine the number of credits that shall be granted to a 
326.3   pupil who successfully completes a course.  If a comparable 
326.4   course is offered by the district, the school board shall grant 
326.5   a comparable number of credits to the pupil.  If there is a 
326.6   dispute between the district and the pupil regarding the number 
326.7   of credits granted for a particular course, the pupil may appeal 
326.8   the board's decision to the commissioner.  The commissioner's 
326.9   decision regarding the number of credits shall be final.  
326.10     The secondary credits granted to a pupil must be counted 
326.11  toward the graduation requirements and subject area requirements 
326.12  of the district.  Evidence of successful completion of each 
326.13  course and secondary credits granted must be included in the 
326.14  pupil's secondary school record.  A pupil shall provide the 
326.15  school with a copy of the pupil's grade in each course taken for 
326.16  secondary credit under this section.  Upon the request of a 
326.17  pupil, the pupil's secondary school record must also include 
326.18  evidence of successful completion and credits granted for a 
326.19  course taken for post-secondary credit.  In either case, the 
326.20  record must indicate that the credits were earned at a 
326.21  post-secondary institution. 
326.22     If a pupil enrolls in a post-secondary institution after 
326.23  leaving secondary school, the post-secondary institution must 
326.24  award post-secondary credit for any course successfully 
326.25  completed for secondary credit at that institution.  Other 
326.26  post-secondary institutions may award, after a pupil leaves 
326.27  secondary school, post-secondary credit for any courses 
326.28  successfully completed under this section.  An institution may 
326.29  not charge a pupil for the award of credit. 
326.30     Sec. 7.  Minnesota Statutes 1998, section 124D.10, 
326.31  subdivision 1, is amended to read: 
326.32     Subdivision 1.  [PURPOSES EXPECTED OUTCOMES.] (a) 
326.33  The purpose of this section is expected outcomes of a charter 
326.34  school are to: 
326.35     (1) improve pupil learning; 
326.36     (2) increase learning opportunities for pupils; 
327.1      (3) encourage the use of different and innovative teaching 
327.2   methods; 
327.3      (4) require the measurement of learning outcomes and create 
327.4   different and innovative forms of measuring outcomes; 
327.5      (5) establish new forms of accountability for schools; or 
327.6      (6) create new professional opportunities for teachers, 
327.7   including the opportunity to be responsible for the learning 
327.8   program at the school site. 
327.9      (b) This section does not provide a means to keep open a 
327.10  school that otherwise would be closed.  Applicants in these 
327.11  circumstances bear the burden of proving that conversion to a 
327.12  charter school fulfills a purpose specified in this subdivision, 
327.13  independent of the school's closing. 
327.14     Sec. 8.  Minnesota Statutes 1998, section 124D.10, 
327.15  subdivision 6, is amended to read: 
327.16     Subd. 6.  [CONTRACT.] The sponsor's authorization for a 
327.17  charter school must be in the form of a written contract signed 
327.18  by the sponsor and the board of directors of the charter 
327.19  school.  The contract for a charter school must be in writing 
327.20  and contain at least the following: 
327.21     (1) a description of a program that carries out one or more 
327.22  of the purposes expected outcomes in subdivision 1; 
327.23     (2) specific outcomes pupils are to achieve under 
327.24  subdivision 10; 
327.25     (3) admission policies and procedures; 
327.26     (4) management and administration of the school; 
327.27     (5) requirements and procedures for program and financial 
327.28  audits; 
327.29     (6) how the school will comply with subdivisions 8, 13, 16, 
327.30  and 23; 
327.31     (7) assumption of liability by the charter school; 
327.32     (8) types and amounts of insurance coverage to be obtained 
327.33  by the charter school; 
327.34     (9) the term of the contract, which may be up to three 
327.35  years; and 
327.36     (10) if the board of directors or the operators of the 
328.1   charter school provide special instruction and services for 
328.2   children with a disability under sections 125A.03 to 125A.24, 
328.3   and 125A.65, a description of the financial parameters within 
328.4   which the charter school will operate to provide the special 
328.5   instruction and services to children with a disability. 
328.6      Sec. 9.  Minnesota Statutes 1998, section 124D.10, 
328.7   subdivision 15, is amended to read: 
328.8      Subd. 15.  [REVIEW AND COMMENT.] The department must review 
328.9   and comment on the evaluation, by the chartering school 
328.10  district, of the performance of a charter school before the 
328.11  charter school's contract is renewed.  The information from the 
328.12  review and comment shall be reported to the state board of 
328.13  education in a timely manner.  Periodically, the state board 
328.14  shall report trends or suggestions based on the evaluation of 
328.15  charter school contracts to the education committees of the 
328.16  state legislature.  
328.17     Sec. 10.  Minnesota Statutes 1998, section 124D.10, 
328.18  subdivision 19, is amended to read: 
328.19     Subd. 19.  [DISSEMINATE AVAILABLE INFORMATION.] The 
328.20  sponsor, the operators, and the department of children, 
328.21  families, and learning must disseminate make information 
328.22  available to the public on how to form and operate a charter 
328.23  school and how to utilize the offerings of a charter school.  
328.24  Particular groups to be targeted include low-income families and 
328.25  communities, and students of color. 
328.26     Sec. 11.  Minnesota Statutes 1998, section 124D.115, 
328.27  subdivision 3, is amended to read: 
328.28     Subd. 3.  [PROGRAM REIMBURSEMENT.] (a) State funds are 
328.29  provided to reimburse school breakfasts.  Each school year, the 
328.30  state must reimburse schools in the amount of 5.1 cents for each 
328.31  fully paid breakfast and for each free and reduced price 
328.32  breakfast not eligible for the "severe need" rate. 
328.33     (b) In addition to paragraph (a), each school year the 
328.34  state must reimburse schools 10.5 cents for each free and 
328.35  reduced price breakfast not eligible for the "severe need" rate 
328.36  if between 33 and 40 percent of the school lunches served during 
329.1   the second preceding school year were served free or at a 
329.2   reduced price. 
329.3      Sec. 12.  Minnesota Statutes 1998, section 124D.118, 
329.4   subdivision 2, is amended to read: 
329.5      Subd. 2.  [ESTABLISHMENT; SCHOOL PARTICIPATION.] Each 
329.6   district in the state is encouraged to participate in the 
329.7   state-supported school milk program for kindergartners.  
329.8   Participating districts must provide one serving of milk on each 
329.9   school day to each kindergarten student attending a public or 
329.10  nonpublic school in the district.  No student is required to 
329.11  accept the milk that is provided by the district.  The program 
329.12  must be promoted and operated under the direction of the 
329.13  commissioner or the commissioner's designee. 
329.14     Sec. 13.  Minnesota Statutes 1998, section 124D.118, 
329.15  subdivision 3, is amended to read: 
329.16     Subd. 3.  [PROGRAM GUIDELINES; DUTIES OF THE COMMISSIONER.] 
329.17  (a) The commissioner shall: 
329.18     (1) encourage all districts to participate in the school 
329.19  milk program for kindergartners; 
329.20     (2) prepare maintain program guidelines, not subject to 
329.21  chapter 14 until July 1, 1998, which will effectively and 
329.22  efficiently distribute appropriated and donated money to 
329.23  participating districts; and 
329.24     (3) (2) seek donations and matching funds from appropriate 
329.25  private and public sources. 
329.26     (b) Program guidelines may provide for disbursement to 
329.27  districts through a mechanism of prepayments or by reimbursement 
329.28  for approved program expenses. 
329.29     Sec. 14.  Minnesota Statutes 1998, section 124D.28, 
329.30  subdivision 1, is amended to read: 
329.31     Subdivision 1.  [MANDATORY COMPONENTS EXPECTATIONS.] The 
329.32  expected outcomes of a family connections program must include:  
329.33     (1) participation by a designated designation of an 
329.34  individual as a career teacher, principal-teacher, or counselor 
329.35  teacher; 
329.36     (2) an increased emphasis on each individual child's unique 
330.1   learning and development needs beginning with early childhood 
330.2   family education; 
330.3      (3) procedures to give the career teacher a major 
330.4   responsibility for leadership of the instructional and 
330.5   noninstructional activities of each child beginning with early 
330.6   childhood family education; 
330.7      (4) procedures to involve increased involvement of parents 
330.8   in the learning and development experiences of their 
330.9   children; and 
330.10     (5) procedures to implement outcome based education by 
330.11  focusing on the needs of the learner; 
330.12     (6) procedures to coordinate and integrate (4) increased 
330.13  involvement of the instructional program with all community 
330.14  education programs; 
330.15     (7) procedures to concentrate career teacher programs at 
330.16  sites that provide early childhood family education and 
330.17  subsequent learning and development programs; and 
330.18     (8) procedures for the district to fund the program.  
330.19     Sec. 15.  Minnesota Statutes 1998, section 124D.29, is 
330.20  amended by adding a subdivision to read: 
330.21     Subd. 6.  [DISTRICT COMPONENTS.] The school board and the 
330.22  exclusive bargaining representative of the teachers that has a 
330.23  family connections program shall negotiate: 
330.24     (1) staff to student ratios; 
330.25     (2) procedures for teachers, principals, and counselors to 
330.26  apply for and renew the position of career teacher, 
330.27  principal-teacher, or counselor teacher; and 
330.28     (3) the duties of the career teacher, principal-teacher, or 
330.29  counselor teacher. 
330.30     Sec. 16.  Minnesota Statutes 1998, section 124D.30, 
330.31  subdivision 3, is amended to read: 
330.32     Subd. 3.  [COMMISSIONER APPROVAL.] The commissioner may 
330.33  shall approve plans and applications for districts throughout 
330.34  the state for family connections aid.  The commissioner shall 
330.35  establish application procedures and deadlines. 
330.36     Sec. 17.  Minnesota Statutes 1998, section 124D.34, 
331.1   subdivision 4, is amended to read: 
331.2      Subd. 4.  [FOUNDATION PROGRAMS AND DUTIES.] The foundation 
331.3   shall advance applied leadership and intracurricular vocational 
331.4   learning experiences for students.  These may include, but are 
331.5   not limited to: 
331.6      (1) recognition programs and awards for students 
331.7   demonstrating excellence in applied leadership; 
331.8      (2) summer programs for student leadership, career 
331.9   development, applied academics, and mentorship programs with 
331.10  business and industry; 
331.11     (3) recognition programs for teachers, administrators, and 
331.12  others who make outstanding contributions to school-to-work 
331.13  programs; 
331.14     (4) outreach programs to increase the involvement of urban 
331.15  and suburban students; 
331.16     (5) organized challenges requiring cooperation and 
331.17  competition for secondary and post-secondary students; 
331.18     (6) assistance and training to community teams to increase 
331.19  career awareness and empowerment of youth as community leaders; 
331.20  and 
331.21     (7) assessment and activities in order to plan for and 
331.22  implement continuous improvement.  
331.23     To the extent possible, the foundation shall make these 
331.24  programs available to students in all parts of the state.  The 
331.25  foundation may receive public and private money, grants, and 
331.26  in-kind services and goods from nonstate sources without 
331.27  complying with section 7.09, subdivision 1. 
331.28     Sec. 18.  Minnesota Statutes 1998, section 124D.35, is 
331.29  amended to read: 
331.30     124D.35 [YOUTH ENTREPRENEURSHIP EDUCATION PROGRAM.] 
331.31     The commissioner shall establish A youth entrepreneurship 
331.32  education program to improve the academic and entrepreneurial 
331.33  skills of students and aid in their transition from school to 
331.34  business creation.  The program shall strengthen local economies 
331.35  by creating jobs that enable citizens to remain in their 
331.36  communities and to foster cooperation among educators, economic 
332.1   development professionals, business leaders, and representatives 
332.2   of labor.  Assistance under this section shall be available to 
332.3   new or existing student-operated or school-operated businesses 
332.4   that have an educational purpose, and provide service or 
332.5   products for customers or clients who do not attend or work at 
332.6   the sponsoring school.  The commissioner may require an equal 
332.7   local match for assistance under this section up to the maximum 
332.8   grant amount of $20,000. 
332.9      Sec. 19.  Minnesota Statutes 1998, section 124D.37, is 
332.10  amended to read: 
332.11     124D.37 [PURPOSE EXPECTED OUTCOMES OF THE MINNESOTA YOUTH 
332.12  WORKS ACT.] 
332.13     The purposes expected outcomes of sections 124D.37 to 
332.14  124D.45 are to: 
332.15     (1) renew the ethic of promote civic responsibility in 
332.16  Minnesota; 
332.17     (2) empower youth to improve their life opportunities 
332.18  through youth literacy, job placement, and other essential life 
332.19  skills; 
332.20     (3) empower government improve government's to meet its 
332.21  responsibility to prepare young people to be contributing 
332.22  members of society; 
332.23     (4) help meet human civic, educational, environmental, and 
332.24  public safety needs, particularly those needs relating to 
332.25  poverty; 
332.26     (5) prepare a citizenry that is academically competent, 
332.27  ready for work, and socially responsible; 
332.28     (6) demonstrate the connection between youth and meaningful 
332.29  community service, community service and education, and 
332.30  education and meaningful opportunities in the business 
332.31  community; 
332.32     (7) demonstrate the connection between providing 
332.33  opportunities for at-risk youth and reducing crime rates and the 
332.34  social costs of troubled youth activities; 
332.35     (8) (6) create linkages for a comprehensive youth service 
332.36  and learning program in Minnesota including school age programs, 
333.1   higher education programs, youth work programs, and service 
333.2   corps programs; and 
333.3      (9) (7) coordinate federal and state activities that 
333.4   advance the purposes in this section. 
333.5      Sec. 20.  Minnesota Statutes 1998, section 124D.40, 
333.6   subdivision 2, is amended to read: 
333.7      Subd. 2.  [GRANT AUTHORITY.] The commission and, beginning 
333.8   January 1, 1997, the council must use any state appropriation 
333.9   and any available federal funds, including any grant received 
333.10  under federal law, to award grants to establish programs for 
333.11  youth works meeting the requirements of section 124D.41.  At 
333.12  least one grant each must be available for a metropolitan 
333.13  proposal, a rural proposal, and a statewide proposal.  If a 
333.14  portion of the suburban metropolitan area is not included in the 
333.15  metropolitan grant proposal, the statewide grant proposal must 
333.16  incorporate at least one suburban metropolitan area.  In 
333.17  awarding grants, the commission and, beginning January 1, 1997, 
333.18  the council may select at least one residential proposal and one 
333.19  nonresidential proposal, provided the proposals meet or exceed 
333.20  the criteria in section 124D.41. 
333.21     Sec. 21.  Minnesota Statutes 1998, section 124D.41, is 
333.22  amended to read: 
333.23     124D.41 [GRANT APPLICATIONS.] 
333.24     Subdivision 1.  [APPLICATIONS REQUIRED.] An organization 
333.25  seeking federal or state grant money under sections 124D.39 to 
333.26  124D.44 shall prepare and submit to the commission and, 
333.27  beginning January 1, 1997, the council an application that meets 
333.28  the requirements of this section developed by the commission.  
333.29  The commission and, beginning January 1, 1997, the council must 
333.30  develop, and the applying organizations must comply with, the 
333.31  form and manner of the application requirements that meet the 
333.32  expected outcomes in section 124D.37. 
333.33     Subd. 2.  [APPLICATION CONTENT.] An applicant on its 
333.34  application must: describe how it intends to meet the expected 
333.35  outcomes in section 124D.37. 
333.36     (1) propose a program to provide participants the 
334.1   opportunity to perform community service to meet specific unmet 
334.2   community needs, and participate in classroom, work-based, and 
334.3   service-learning; 
334.4      (2) assess the community's unmet educational, human, 
334.5   environmental, and public safety needs, the resources and 
334.6   programs available for meeting those needs, and how young people 
334.7   participated in assessing community needs; 
334.8      (3) describe the educational component of the program, 
334.9   including classroom hours per week, classroom time for 
334.10  participants to reflect on the program experience, and 
334.11  anticipated academic outcomes related to the service experience; 
334.12     (4) describe the work to be performed, the ratio of youth 
334.13  participants to crew leaders and mentors, and the expectations 
334.14  and qualifications for crew leaders and mentors; 
334.15     (5) describe local funds or resources available to meet the 
334.16  match requirements of section 124D.44; 
334.17     (6) describe any funds available for the program from 
334.18  sources other than the requested grant; 
334.19     (7) describe any agreements with local businesses to 
334.20  provide participants with work-learning opportunities and 
334.21  mentors; 
334.22     (8) describe any agreement with local post-secondary 
334.23  educational institutions to offer participants course credits 
334.24  for their community service-learning experience; 
334.25     (9) describe any agreement with a local high school or an 
334.26  alternative learning center to provide remedial education, 
334.27  credit for community service work and work-based learning, or 
334.28  graduate equivalency degrees; 
334.29     (10) describe any pay for service or other program delivery 
334.30  mechanism that will provide reimbursement for benefits conferred 
334.31  or recover costs of services participants perform; 
334.32     (11) describe how local resources will be used to provide 
334.33  support and assistance for participants to encourage them to 
334.34  continue with the program, fulfill the terms of the contract, 
334.35  and remain eligible for any postservice benefit; 
334.36     (12) describe the arbitration mechanism for dispute 
335.1   resolution required under section 124D.42, subdivision 2; 
335.2      (13) describe involvement of community leaders in 
335.3   developing broad-based support for the program; 
335.4      (14) describe the consultation and sign-off process to be 
335.5   used with any local labor organization representing employees in 
335.6   the area engaged in work similar to that proposed for the 
335.7   program to ensure that no current employees or available 
335.8   employment positions will be displaced by program participants; 
335.9      (15) certify to the commission and, beginning January 1, 
335.10  1997, the council, and to any certified bargaining 
335.11  representatives representing employees of the applying 
335.12  organization that the project will not decrease employment 
335.13  opportunities that would be available without the project; will 
335.14  not displace current employees including any partial 
335.15  displacement in the form of reduced hours of work other than 
335.16  overtime, wages, employment benefits, or regular seasonal work; 
335.17  will not impair existing labor agreements; and will not result 
335.18  in the substitution of project funding for preexisting funds or 
335.19  sources of funds for ongoing work; 
335.20     (16) describe the length of the required service period, 
335.21  which may not be less than six months or more than two years, a 
335.22  method to incorporate a participant's readiness to advance or 
335.23  need for postservice financial assistance into individual 
335.24  service requirements, and any opportunity for participating part 
335.25  time or in another program; 
335.26     (17) describe a program evaluation plan that contains 
335.27  cost-effectiveness measures, measures of participant success 
335.28  including educational accomplishments, job placements, community 
335.29  contributions, and ongoing volunteer activities, outcome 
335.30  measures based on a preprogram and postprogram survey of 
335.31  community rates of arrest, incarceration, teenage pregnancy, and 
335.32  other indicators of youth in trouble, and a list of local 
335.33  resources dedicated to reducing these rates; 
335.34     (18) describe a three-year financial plan for maintaining 
335.35  the program; 
335.36     (19) describe the role of local youth in developing all 
336.1   aspects of the grant proposal; and 
336.2      (20) describe the process by which the local private 
336.3   industry council participated in, and reviewed the grant 
336.4   application. 
336.5      Sec. 22.  Minnesota Statutes 1998, section 124D.42, 
336.6   subdivision 7, is amended to read: 
336.7      Subd. 7.  [TRAINING AND EDUCATION REQUIREMENTS.] Each 
336.8   grantee organization must assess and work to enhance the 
336.9   educational level of each entering participant.  Each grantee 
336.10  shall work to enhance the educational skills of each 
336.11  participant.  The commission and, beginning January 1, 1997, the 
336.12  council may coordinate or contract with educational institutions 
336.13  or other providers for educational services and evaluation.  All 
336.14  grantees shall give priority to educating and training 
336.15  participants who do not have a high school diploma or its 
336.16  equivalent, or who cannot afford post-secondary training and 
336.17  education. 
336.18     Sec. 23.  Minnesota Statutes 1998, section 124D.46, 
336.19  subdivision 1, is amended to read: 
336.20     Subdivision 1.  [GOALS ESTABLISHMENT.] To better prepare 
336.21  all learners to make transitions between education and 
336.22  employment, A comprehensive education and employment transitions 
336.23  system is established that is driven by multisector partnerships 
336.24  and takes a lifelong approach to workforce development.  
336.25  The goals of the statewide education and employment transitions 
336.26  system are shall develop and implement methods: 
336.27     (1) to improve the skills learners need to achieve greater 
336.28  levels of self-sufficiency through education, training, and 
336.29  work; 
336.30     (2) to improve work-related counseling and information 
336.31  about career opportunities and vocational education programs 
336.32  available to learners to facilitate workforce development; 
336.33     (3) to integrate opportunities for work-based learning, 
336.34  service-learning, and other applied learning methods into the 
336.35  elementary, secondary, and post-secondary curriculum and state 
336.36  and local graduation standards; 
337.1      (4) to increase participation in employment opportunities 
337.2   and demonstrate the relationship between education and 
337.3   employment at the elementary, secondary, and post-secondary 
337.4   education levels; 
337.5      (5) (4) to promote the efficient use of public and private 
337.6   resources by coordinating elementary, secondary, and 
337.7   post-secondary education with related government programs; 
337.8      (6) (5) to expand educational options available to all 
337.9   learners through collaborative efforts between school districts, 
337.10  post-secondary institutions, employers, organized labor, 
337.11  workers, learners, parents, community-based organizations, and 
337.12  other interested parties; 
337.13     (7) (6) to increase opportunities for women, minorities, 
337.14  individuals with a disability, and at-risk learners to fully 
337.15  participate in work-based learning; 
337.16     (8) to establish performance standards for learners that 
337.17  integrate state and local graduation standards and generally 
337.18  recognized industry and occupational skill standards; and 
337.19     (9) (7) to provide support systems including a unified 
337.20  labor market information system; a centralized quality assurance 
337.21  system with information on learner achievement, employer 
337.22  satisfaction, and measurable system outcomes; a statewide 
337.23  marketing system to promote the importance of lifework 
337.24  development; a comprehensive professional development system for 
337.25  public and private sector partners; and a comprehensive system 
337.26  for providing technical support to local partnerships for 
337.27  education and employment transitions. 
337.28     Sec. 24.  Minnesota Statutes 1998, section 124D.47, 
337.29  subdivision 2, is amended to read: 
337.30     Subd. 2.  [YOUTH APPRENTICESHIP PROGRAMS.] (a) A 
337.31  comprehensive youth apprenticeship program must require 
337.32  representatives of secondary and post-secondary school systems, 
337.33  affected local businesses, industries, occupations and labor, as 
337.34  well as the local community, to be actively and collaboratively 
337.35  involved in advising and managing the program and ensuring, in 
337.36  consultation with local private industry councils, that the 
338.1   youth apprenticeship program meets local labor market demands, 
338.2   provides student apprentices with the high skill training 
338.3   necessary for career advancement, meets applicable state 
338.4   graduation requirements and labor standards, pays apprentices 
338.5   for their work and provides support services to program 
338.6   participants. 
338.7      (b) Local employers, collaborating with labor organizations 
338.8   where appropriate, must assist the program by analyzing 
338.9   workplace needs, creating work-related curriculum, employing and 
338.10  adequately paying youth apprentices engaged in work-related 
338.11  learning in the workplace, training youth apprentices to become 
338.12  skilled in an occupation, providing student apprentices with a 
338.13  workplace mentor, periodically informing the school of an 
338.14  apprentice's progress, and making a reasonable effort to employ 
338.15  youth apprentices who successfully complete the program. 
338.16     (c) A student participating in a comprehensive youth 
338.17  apprenticeship program must sign a youth apprenticeship 
338.18  agreement with participating entities that obligates youth 
338.19  apprentices, their parents or guardians, employers, and schools 
338.20  to meet program requirements; indicates how academic 
338.21  instruction, work-based learning, and worksite learning and 
338.22  experience will be integrated; ensures that successful youth 
338.23  apprentices will receive a recognized credential of academic and 
338.24  occupational proficiency; and establishes the wage rate and 
338.25  other benefits for which youth apprentices are eligible while 
338.26  employed during the program. 
338.27     (d) Secondary school principals, counselors, or business 
338.28  mentors familiar with the education to employment transitions 
338.29  system must inform entering secondary school students about 
338.30  available occupational and career opportunities and the option 
338.31  of entering a youth apprenticeship or other work-based learning 
338.32  program to obtain post-secondary academic and occupational 
338.33  credentials. 
338.34     Sec. 25.  Minnesota Statutes 1998, section 124D.49, 
338.35  subdivision 3, is amended to read: 
338.36     Subd. 3.  [LOCAL EDUCATION AND EMPLOYMENT TRANSITIONS 
339.1   SYSTEMS.] A local education and employment transitions 
339.2   partnership must assess the needs of employers, employees, and 
339.3   learners, and develop a plan for implementing and achieving the 
339.4   objectives of a local or regional education and employment 
339.5   transitions system.  The plan must provide for a comprehensive 
339.6   local system for assisting learners and workers in making the 
339.7   transition from school to work or for retraining in a new 
339.8   vocational area.  The objectives expected outcomes of a local 
339.9   education and employment transitions system include:  
339.10     (1) increasing the effectiveness of the educational 
339.11  programs and curriculum of elementary, secondary, and 
339.12  post-secondary schools which meet state and local graduation 
339.13  standards and the work site in preparing prepare students in the 
339.14  skills and knowledge needed to be successful in the workplace; 
339.15     (2) implementing learner outcomes for students in grades 
339.16  kindergarten through 12 designed to introduce the world of work 
339.17  and to explore career opportunities, including nontraditional 
339.18  career opportunities; 
339.19     (3) eliminating barriers to providing effective integrated 
339.20  applied learning, service-learning, or work-based curriculum; 
339.21     (4) increasing opportunities to apply academic knowledge 
339.22  and skills, including skills needed in the workplace, in local 
339.23  settings which include the school, school-based enterprises, 
339.24  post-secondary institutions, the workplace, and the community; 
339.25     (5) increasing applied instruction in the attitudes and 
339.26  skills essential for success in the workplace, including 
339.27  cooperative working, leadership, problem-solving, and respect 
339.28  for diversity; 
339.29     (6) providing staff training for vocational guidance 
339.30  counselors, teachers, and other appropriate staff in the 
339.31  importance of preparing learners for the transition to work, and 
339.32  in methods of providing instruction that incorporate applied 
339.33  learning, work-based learning, and service-learning experiences; 
339.34     (7) (4) identifying and enlisting local and regional 
339.35  employers who can effectively provide work-based or 
339.36  service-learning opportunities, including, but not limited to, 
340.1   apprenticeships, internships, and mentorships; 
340.2      (8) (5) recruiting community and workplace mentors 
340.3   including peers, parents, employers and employed individuals 
340.4   from the community, and employers of high school students; 
340.5      (9) (6) identifying current and emerging educational, 
340.6   training, and employment needs of the area or region, especially 
340.7   within industries with potential for job growth; 
340.8      (10) (7) improving the coordination and effectiveness of 
340.9   local vocational and job training programs, including vocational 
340.10  education, adult basic education, tech prep, apprenticeship, 
340.11  service-learning, youth entrepreneur, youth training and 
340.12  employment programs administered by the commissioner of economic 
340.13  security, and local job training programs under the Job Training 
340.14  Partnership Act, United States Code, title 29, section 1501, et 
340.15  seq.; 
340.16     (11) (8) identifying and applying for federal, state, 
340.17  local, and private sources of funding for vocational or applied 
340.18  learning programs; 
340.19     (12) (9) providing students with current information and 
340.20  counseling about career opportunities, potential employment, 
340.21  educational opportunities in post-secondary institutions, 
340.22  workplaces, and the community, and the skills and knowledge 
340.23  necessary to succeed; 
340.24     (13) providing educational technology, including 
340.25  interactive television networks and other distance learning 
340.26  methods, to ensure access to a broad variety of work-based 
340.27  learning opportunities; 
340.28     (14) (10) including students with disabilities in a 
340.29  district's vocational or applied learning program and ways to 
340.30  serve at-risk learners through collaboration with area learning 
340.31  centers under sections 123A.05 to 123A.09, or other alternative 
340.32  programs; and 
340.33     (15) (11) providing a warranty to employers, post-secondary 
340.34  education programs, and other post-secondary training programs, 
340.35  that learners successfully completing a high school work-based 
340.36  or applied learning program will be able to apply the knowledge 
341.1   and work skills included in the program outcomes or graduation 
341.2   requirements.  The warranty shall require education and training 
341.3   programs to continue to work with those learners that need 
341.4   additional skill development until they can demonstrate 
341.5   achievement of the program outcomes or graduation requirements. 
341.6      Sec. 26.  Minnesota Statutes 1998, section 124D.65, 
341.7   subdivision 6, is amended to read: 
341.8      Subd. 6.  [PARTICIPATION OF NONPUBLIC SCHOOL PUPILS.] In 
341.9   counting the number of pupils of limited English proficiency for 
341.10  purposes of this section, districts may include pupils of 
341.11  limited English proficiency who attend nonpublic schools in the 
341.12  district.  A district which counts those pupils and receives aid 
341.13  pursuant to this section must offer those pupils the same 
341.14  programs on the same terms that it offers to pupils of limited 
341.15  English proficiency who attend the public school.  A program 
341.16  provided for a nonpublic school pupil pursuant to this 
341.17  subdivision must be provided at a public school or, a neutral 
341.18  site as defined in section 123B.41, subdivision 13, the 
341.19  nonpublic school, or any other suitable location.  The school 
341.20  district must make the final decision on the location of these 
341.21  services.  Nonpublic school pupils served by a district's 
341.22  educational program for pupils of limited English proficiency 
341.23  must be counted for average daily membership pursuant to 
341.24  sections 126C.01, subdivisions 6 to 8, and 126C.19, subdivisions 
341.25  1 to 4.  
341.26     Sec. 27.  Minnesota Statutes 1998, section 124D.74, 
341.27  subdivision 1, is amended to read: 
341.28     Subdivision 1.  [PROGRAM DESCRIBED OUTCOMES.] American 
341.29  Indian language and culture education programs are programs in 
341.30  elementary and secondary schools enrolling American Indian 
341.31  children designed: 
341.32     (1) to make the curriculum more relevant to the needs, 
341.33  interests, and cultural heritage of American Indian pupils; 
341.34     (2) to provide positive reinforcement of the self-image of 
341.35  American Indian pupils; and 
341.36     (3) to develop intercultural awareness among pupils, 
342.1   parents, and staff.  Program components may include:  
342.2   instruction in American Indian language, literature, history, 
342.3   and culture; development of support components for staff, 
342.4   including in-service training and technical assistance in 
342.5   methods of teaching American Indian pupils; research projects, 
342.6   including experimentation with and evaluation of methods of 
342.7   relating to American Indian pupils; provision of personal and 
342.8   vocational counseling to American Indian pupils; modification of 
342.9   curriculum, instructional methods, and administrative procedures 
342.10  to meet the needs of American Indian pupils; and establishment 
342.11  of cooperative liaisons with nonsectarian nonpublic, community, 
342.12  tribal or alternative schools offering curricula which reflect 
342.13  American Indian culture.  Districts offering programs may make 
342.14  contracts for the provision of program components by 
342.15  nonsectarian nonpublic, community, tribal or alternative 
342.16  schools.  These programs may also be provided as components of 
342.17  early childhood and family education programs. 
342.18     Sec. 28.  Minnesota Statutes 1998, section 124D.88, 
342.19  subdivision 2, is amended to read: 
342.20     Subd. 2.  [APPROVAL AUTHORITY; APPLICATION FORMS.] To the 
342.21  extent money is available, The commissioner may approve projects 
342.22  from applications submitted under this section.  The grant money 
342.23  must be used only to design, acquire, construct, expand, 
342.24  remodel, improve, furnish, or equip the building or site of a 
342.25  magnet school facility according to contracts entered into 
342.26  within 24 months after the date on which a grant is awarded. 
342.27     Sec. 29.  Minnesota Statutes 1998, section 124D.892, is 
342.28  amended to read: 
342.29     124D.892 [OFFICE OF DESEGREGATION/INTEGRATION.] 
342.30     Subdivision 1.  [ESTABLISHMENT.] (a) An office of 
342.31  desegregation/integration is established in The department 
342.32  commissioner of children, families, and learning to must 
342.33  coordinate and support activities related to student enrollment, 
342.34  student and staff recruitment and retention, transportation, and 
342.35  interdistrict cooperation among metropolitan school districts.  
342.36     (b) At the request of a metropolitan school district 
343.1   involved in cooperative desegregation/integration efforts, the 
343.2   office commissioner shall perform any of the following 
343.3   activities: 
343.4      (1) assist districts with interdistrict student transfers, 
343.5   including student recruitment, counseling, placement, and 
343.6   transportation; 
343.7      (2) coordinate and disseminate information about schools 
343.8   and programs; 
343.9      (3) assist districts with new magnet schools and programs; 
343.10     (4) assist districts in providing staff development and 
343.11  in-service training; and 
343.12     (5) coordinate and administer staff exchanges. 
343.13     (c) The office commissioner shall collect data on the 
343.14  efficacy of districts' desegregation/integration efforts and 
343.15  make recommendations based on the data.  The office commissioner 
343.16  shall periodically consult with the metropolitan council to 
343.17  coordinate school desegregation/integration efforts with the 
343.18  housing, social, economic, and infrastructure needs of the 
343.19  metropolitan area.  The office commissioner shall develop a 
343.20  process for resolving students' disputes and grievances about 
343.21  student transfers under a desegregation/integration plan.  
343.22     Subd. 2.  [COORDINATION.] The commissioner may request 
343.23  information or assistance from, or contract with, any state or 
343.24  local agency or officer, local unit of government, or recognized 
343.25  expert to assist the commissioner in performing the activities 
343.26  described in subdivision 1.  
343.27     Subd. 3.  [ADVISORY BOARD.] The commissioner shall 
343.28  establish an advisory board composed of: 
343.29     (1) eight superintendents, each of whom shall be selected 
343.30  by the superintendents of the school districts located in whole 
343.31  or in part within each of the eight metropolitan districts 
343.32  established under section 473.123, subdivision 3c; and 
343.33     (2) one person each selected by the Indian affairs council, 
343.34  the council on Asian-Pacific Minnesotans, the council on Black 
343.35  Minnesotans, and the council on affairs of Chicano/Latino people.
343.36     The advisory board shall advise the office commissioner on 
344.1   complying with the requirements under subdivision 1.  The 
344.2   advisory board may solicit comments from teachers, parents, 
344.3   students, and interested community organizations and others. 
344.4      Sec. 30.  Minnesota Statutes 1998, section 124D.894, is 
344.5   amended to read: 
344.6      124D.894 [STATE MULTICULTURAL EDUCATION ADVISORY 
344.7   COMMITTEE.] 
344.8      (a) The commissioner shall appoint a state multicultural 
344.9   education advisory committee to advise the department and the 
344.10  state board on multicultural education.  The committee must have 
344.11  12 members and be composed of representatives from among the 
344.12  following groups and community organizations:  African-American, 
344.13  Asian-Pacific, Hispanic, and American Indian. 
344.14     (b) The state committee shall provide information and 
344.15  recommendations on: 
344.16     (1) department procedures for reviewing and approving 
344.17  district plans and disseminating information on multicultural 
344.18  education; 
344.19     (2) department procedures for improving inclusive education 
344.20  plans, curriculum and instruction improvement plans, and 
344.21  performance-based assessments; 
344.22     (3) developing learner outcomes which are multicultural; 
344.23  and 
344.24     (4) other recommendations that will further inclusive, 
344.25  multicultural education. 
344.26     (c) The committee shall also participate in determining the 
344.27  criteria for and awarding the grants established under Laws 
344.28  1993, chapter 224, article 8, section 22, subdivision 8. 
344.29     Sec. 31.  Minnesota Statutes 1998, section 124D.94, 
344.30  subdivision 2, is amended to read: 
344.31     Subd. 2.  [CREATION OF FOUNDATION.] There is created the 
344.32  Minnesota academic excellence foundation.  The purpose of the 
344.33  foundation shall be to promote academic excellence in Minnesota 
344.34  public and nonpublic schools and communities through 
344.35  public-private partnerships.  The foundation shall be a 
344.36  nonprofit organization.  The board of directors of the 
345.1   foundation and foundation activities are under the direction of 
345.2   the state board of education. 
345.3      Sec. 32.  Minnesota Statutes 1998, section 124D.94, 
345.4   subdivision 4, is amended to read: 
345.5      Subd. 4.  [FOUNDATION PROGRAMS.] The foundation may shall 
345.6   develop programs that advance the concept of educational 
345.7   excellence in Minnesota public and nonpublic schools and 
345.8   communities through public-private partnerships.  These may 
345.9   include, but are not limited to:  
345.10     (a) recognition programs and awards for students 
345.11  demonstrating academic excellence; 
345.12     (b) summer institute programs for students with special 
345.13  talents; 
345.14     (c) recognition programs for teachers, administrators, and 
345.15  others who contribute to academic excellence; 
345.16     (d) summer mentorship programs with business and industry 
345.17  for students with special career interests and high academic 
345.18  achievements; 
345.19     (e) governor's awards ceremonies and special campaigns to 
345.20  promote awareness and expectation for academic achievement; 
345.21     (f) an academic league to provide organized challenges 
345.22  requiring cooperation and competition for public and nonpublic 
345.23  pupils in elementary and secondary schools; 
345.24     (g) systemic transformation initiatives and assistance and 
345.25  training to community teams to increase school performance in 
345.26  the state's education institutions through strategic quality 
345.27  planning for continuous improvement, empowerment of multiple 
345.28  stakeholders, validation of results via customer-supplier 
345.29  relationships, and a total system approach based on best 
345.30  practices in key process areas; and 
345.31     (h) activities to measure customer satisfaction for 
345.32  delivery of services to education institutions in order to plan 
345.33  for and implement continuous improvement. 
345.34     To the extent possible, the foundation shall make these 
345.35  programs available to students in all parts of the state. 
345.36     Sec. 33.  [REVISOR INSTRUCTION.] 
346.1      In the next and subsequent editions of Minnesota Statutes 
346.2   and Minnesota Rules, the revisor of statutes shall renumber each 
346.3   section of Minnesota Statutes in column A with the number in 
346.4   column B.  The revisor shall also make necessary cross-reference 
346.5   changes consistent with the renumbering. 
346.6   A                          B     
346.7      
346.8   124D.35                    124D.46, subd. 5      
346.9   124D.46, subd. 4           268.665, subd. 7      
346.10  124D.47, subd. 2           124D.46, subd. 6      
346.11     Sec. 34.  [REPEALER.] 
346.12     (a) Minnesota Statutes 1998, sections 124D.02, subdivisions 
346.13  2, 3, and 4; 124D.03, subdivisions 5, 7, 9, and 10; 124D.06; 
346.14  124D.07; 124D.081, subdivision 1; 124D.09, subdivisions 2, 8, 
346.15  25, and 26; 124D.10, subdivision 13; 124D.115, subdivisions 1 
346.16  and 2; 124D.118, subdivision 1; 124D.12; 124D.121; 124D.122; 
346.17  124D.123; 124D.124; 124D.125; 124D.126; 124D.127; 124D.128, 
346.18  subdivisions 1, 2, 3, 4, 5, and 7; 124D.31; 124D.34, subdivision 
346.19  5; 124D.43; 124D.46, subdivision 3; 124D.47, subdivision 1; 
346.20  124D.50, subdivisions 1, 2, and 3; 124D.60, subdivision 3; 
346.21  124D.65, subdivisions 8, 9, and 10; 124D.68, subdivision 1; 
346.22  124D.72; 124D.81, subdivision 7; 124D.88, subdivision 1; 
346.23  124D.895; 124D.90, subdivision 5; 124D.91; 124D.92; and 124D.93, 
346.24  are repealed. 
346.25     (b) Minnesota Statutes 1998, section 124D.128, subdivision 
346.26  6, is repealed effective July 1, 2001. 
346.27                             ARTICLE 17
346.28                      EDUCATION AND TECHNOLOGY 
346.29     Section 1.  Minnesota Statutes 1998, section 125B.05, 
346.30  subdivision 1, is amended to read: 
346.31     Subdivision 1.  [INFORMATION SYSTEM.] The department of 
346.32  children, families, and learning shall develop and maintain a 
346.33  computerized an information system for state information needs.  
346.34     Sec. 2.  Minnesota Statutes 1998, section 125B.05, 
346.35  subdivision 2, is amended to read: 
346.36     Subd. 2.  [PURPOSES.] The purposes of the computerized 
346.37  information system shall be:  
346.38     (a) To provide comparable and accurate educational 
347.1   information in a manner which is timely and economical; 
347.2      (b) To ensure accountability for state appropriations; 
347.3      (c) To collect data to assess the needs of learners and 
347.4   children; 
347.5      (d) To provide school districts with an educational 
347.6   information system capability which will meet school district 
347.7   management needs; and 
347.8      (e) To provide for computerized analysis of educational 
347.9   information to meet the management needs of the state of 
347.10  Minnesota. 
347.11     Sec. 3.  Minnesota Statutes 1998, section 125B.20, 
347.12  subdivision 1, is amended to read: 
347.13     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] The purpose of 
347.14  developing a statewide school district telecommunications 
347.15  network is to expand the availability of a broad range of 
347.16  courses and degrees to students throughout the state, to share 
347.17  information resources to improve access, quality, and 
347.18  efficiency, to improve learning, and distance cooperative 
347.19  learning opportunities, and to promote the exchange of ideas 
347.20  among students, parents, teachers, media generalists, 
347.21  librarians, and the public.  In addition, through the 
347.22  development of this statewide telecommunications network 
347.23  emphasizing cost-effective, competitive connections, all 
347.24  Minnesotans will benefit by enhancing access to 
347.25  telecommunications technology throughout the state.  Network 
347.26  connections for school districts and public libraries will be 
347.27  coordinated and fully integrated into the existing state 
347.28  telecommunications and interactive television networks to 
347.29  achieve comprehensive and efficient interconnectivity of school 
347.30  districts and libraries to higher education institutions, state 
347.31  agencies, other governmental units, agencies, and institutions 
347.32  throughout Minnesota.  A school district may apply to the 
347.33  commissioner for a grant under subdivision 2, and a regional 
347.34  public library may apply under subdivision 3.  The Minnesota 
347.35  education telecommunication council established in Laws 1995, 
347.36  First Special Session chapter 3, article 12, section 7, shall 
348.1   establish priorities for awarding grants, making grant awards, 
348.2   and being responsible for the coordination of networks. 
348.3      Sec. 4.  Minnesota Statutes 1998, section 125B.20, 
348.4   subdivision 4, is amended to read: 
348.5      Subd. 4.  [AWARD OF GRANTS.] The council shall develop 
348.6   application forms and procedures for school district minimum 
348.7   connectivity grants, enhanced telecommunications grants, and 
348.8   regional library telecommunication access grants.  The council 
348.9   shall select the grant recipient and shall promptly notify any 
348.10  applicant that is found not to be qualified.  The commissioner 
348.11  shall make the grant payments directly to the school district or 
348.12  regional library system.  At the request of the district, the 
348.13  commissioner may make the grant payment directly to the 
348.14  coordinating organization.  If appropriations are insufficient 
348.15  to fund all applications, the commissioner shall first fully 
348.16  fund the minimum connectivity grants.  Unsuccessful applicants 
348.17  may reapply for a grant. 
348.18     Sec. 5.  [REPEALER.] 
348.19     Minnesota Statutes 1998, sections 125B.02; 125B.07, 
348.20  subdivisions 1, 3, and 5; 125B.09; and 125B.11, are repealed. 
348.21                             ARTICLE 18 
348.22                         EDUCATION FUNDING 
348.23     Section 1.  Minnesota Statutes 1998, section 126C.05, 
348.24  subdivision 1, is amended to read: 
348.25     Subdivision 1.  [PUPIL UNIT.] Pupil units for each 
348.26  Minnesota resident pupil in average daily membership enrolled in 
348.27  the district of residence, in another district under sections 
348.28  123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 
348.29  124D.68; in a charter school under section 124D.10; or for whom 
348.30  the resident district pays tuition under section 123A.18, 
348.31  123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
348.32  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
348.33  125A.65, shall be counted according to this subdivision.  A 
348.34  district may not count a person who is over the age of 21, 
348.35  except as provided in section 125A.03, or who has graduated from 
348.36  high school and is enrolled as a part-time student in a class or 
349.1   program as a pupil unit. 
349.2      (a) A prekindergarten pupil with a disability who is 
349.3   enrolled in a program approved by the commissioner and has an 
349.4   individual education plan is counted as the ratio of the number 
349.5   of hours of assessment and education service to 825 with a 
349.6   minimum of 0.28, but not more than one. 
349.7      (b) A prekindergarten pupil who is assessed but determined 
349.8   not to be handicapped is counted as the ratio of the number of 
349.9   hours of assessment service to 825.  
349.10     (c) A kindergarten pupil with a disability who is enrolled 
349.11  in a program approved by the commissioner is counted as the 
349.12  ratio of the number of hours of assessment and education 
349.13  services required in the fiscal year by the pupil's individual 
349.14  education program plan to 875, but not more than one. 
349.15     (d) A kindergarten pupil who is not included in paragraph 
349.16  (c) is counted as .53 of a pupil unit for fiscal year 1995 and 
349.17  thereafter. 
349.18     (e) A pupil who is in any of grades 1 to 6 is counted as 
349.19  1.06 pupil units for fiscal year 1995 and thereafter. 
349.20     (f) A pupil who is in any of grades 7 to 12 is counted as 
349.21  1.3 pupil units.  
349.22     (g) A pupil who is in the post-secondary enrollment options 
349.23  program is counted as 1.3 pupil units. 
349.24     Sec. 2.  Minnesota Statutes 1998, section 126C.31, is 
349.25  amended to read: 
349.26     126C.31 [POLICY.] 
349.27     Financing the education of our children is one of state 
349.28  government's most important functions.  In performing this 
349.29  function, the state seeks to provide sufficient funding while 
349.30  encouraging equity, accountability, and incentives toward 
349.31  quality improvement.  To help achieve these goals and to help 
349.32  control future spending growth, The state will fund core 
349.33  instruction and related support services, will facilitate 
349.34  improvement in the quality and delivery of programs and 
349.35  services, and will equalize revenues raised locally for 
349.36  discretionary purposes. 
350.1      Sec. 3.  Minnesota Statutes 1998, section 126C.48, 
350.2   subdivision 8, is amended to read: 
350.3      Subd. 8.  [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 
350.4   Reductions in levies pursuant to sections 126C.48, subdivision 
350.5   1, and 273.138, must be made prior to the reductions in clause 
350.6   (2). 
350.7      (2) Notwithstanding any other law to the contrary, 
350.8   Districts which received payments pursuant to sections 298.018; 
350.9   298.23 to 298.28, except an amount distributed under section 
350.10  298.28, subdivision 4, paragraph (c), clause (ii); 298.34 to 
350.11  298.39; 298.391 to 298.396; 298.405; and any law imposing a tax 
350.12  upon severed mineral values, or recognized revenue pursuant to 
350.13  section 477A.15; must not include a portion of these aids in 
350.14  their permissible levies pursuant to those sections, but instead 
350.15  must reduce the permissible levies authorized by this chapter 
350.16  and chapters 120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A 
350.17  by the greater of the following: 
350.18     (a) an amount equal to 50 percent of the total dollar 
350.19  amount of the payments received pursuant to those sections or 
350.20  revenue recognized pursuant to section 477A.15 in the previous 
350.21  fiscal year; or 
350.22     (b) an amount equal to the total dollar amount of the 
350.23  payments received pursuant to those sections or revenue 
350.24  recognized pursuant to section 477A.15 in the previous fiscal 
350.25  year less the product of the same dollar amount of payments or 
350.26  revenue times five percent. 
350.27     (3) No reduction pursuant to this subdivision shall reduce 
350.28  the levy made by the district pursuant to section 126C.13, to an 
350.29  amount less than the amount raised by a levy of a net tax rate 
350.30  of 6.82 percent times the adjusted net tax capacity for taxes 
350.31  payable in 1990 and thereafter of that district for the 
350.32  preceding year as determined by the commissioner.  The amount of 
350.33  any increased levy authorized by referendum pursuant to section 
350.34  126C.17, subdivision 9, shall not be reduced pursuant to this 
350.35  subdivision.  The amount of any levy authorized by section 
350.36  126C.43, to make payments for bonds issued and for interest 
351.1   thereon, shall not be reduced pursuant to this subdivision.  
351.2      (4) Before computing the reduction pursuant to this 
351.3   subdivision of the health and safety levy authorized by sections 
351.4   123B.57 and 126C.40, subdivision 5, the commissioner shall 
351.5   ascertain from each affected school district the amount it 
351.6   proposes to levy under each section or subdivision.  The 
351.7   reduction shall be computed on the basis of the amount so 
351.8   ascertained. 
351.9      (5) Notwithstanding any law to the contrary, Any amounts 
351.10  received by districts in any fiscal year pursuant to sections 
351.11  298.018; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 
351.12  298.405; or any law imposing a tax on severed mineral values; 
351.13  and not deducted from general education aid pursuant to section 
351.14  126C.21, subdivision 4, clause (2), and not applied to reduce 
351.15  levies pursuant to this subdivision shall be paid by the 
351.16  district to the St. Louis county auditor in the following amount 
351.17  by March 15 of each year, the amount required to be subtracted 
351.18  from the previous fiscal year's general education aid pursuant 
351.19  to section 126C.21, subdivision 4, which is in excess of the 
351.20  general education aid earned for that fiscal year.  The county 
351.21  auditor shall deposit any amounts received pursuant to this 
351.22  clause in the St. Louis county treasury for purposes of paying 
351.23  the taconite homestead credit as provided in section 273.135. 
351.24                             ARTICLE 19 
351.25                 STATE ADMINISTRATION OF EDUCATION 
351.26     Section 1.  Minnesota Statutes 1998, section 127A.05, 
351.27  subdivision 1, is amended to read: 
351.28     Subdivision 1.  [APPOINTMENT AND DUTIES.] The department 
351.29  shall be under the administrative control of the commissioner of 
351.30  children, families, and learning which office is established.  
351.31  The commissioner shall be the secretary of the state board.  The 
351.32  governor shall appoint the commissioner under the provisions of 
351.33  section 15.06.  
351.34     The commissioner shall be a person who possesses 
351.35  educational attainment and breadth of experience in the 
351.36  administration of public education and of the finances 
352.1   pertaining thereto commensurate with the spirit and intent of 
352.2   this code.  Notwithstanding any other law to the contrary, the 
352.3   commissioner may appoint two deputy commissioners who shall 
352.4   serve in the unclassified service.  The commissioner shall also 
352.5   appoint other employees as may be necessary for the organization 
352.6   of the department.  The commissioner shall perform such duties 
352.7   as the law and the rules of the state board may provide and be 
352.8   held responsible for the efficient administration and discipline 
352.9   of the department.  The commissioner shall make recommendations 
352.10  to the board and be charged with the execution of powers and 
352.11  duties which the state board may prescribe, from time to time, 
352.12  to promote public education in the state, to safeguard the 
352.13  finances pertaining thereto, and to enable the state board to 
352.14  carry out its duties.  
352.15     Sec. 2.  Minnesota Statutes 1998, section 127A.05, 
352.16  subdivision 3, is amended to read: 
352.17     Subd. 3.  [GENERAL SUPERVISION OVER PUBLIC SCHOOLS AND 
352.18  EDUCATIONAL AGENCIES.] The commissioner of children, families, 
352.19  and learning shall adopt goals for and exercise general 
352.20  supervision over public schools and other public educational 
352.21  agencies in the state, classify and standardize public 
352.22  elementary and secondary schools, and prepare for them outlines 
352.23  and suggested courses of study.  The commissioner shall develop 
352.24  a plan to attain the adopted goals.  The commissioner may 
352.25  recognize educational accrediting agencies for the sole purposes 
352.26  of sections 120A.22, 120A.24, and 120A.26. 
352.27     Sec. 3.  Minnesota Statutes 1998, section 127A.05, 
352.28  subdivision 4, is amended to read: 
352.29     Subd. 4.  [ADMINISTRATIVE RULES.] The commissioner may 
352.30  adopt new rules and amend them or amend any existing rules only 
352.31  under specific authority.  The commissioner may repeal any 
352.32  existing rules.  Notwithstanding the provisions of section 
352.33  14.05, subdivision 4, the commissioner may grant a variance to 
352.34  rules adopted by the commissioner upon application by a school 
352.35  district for purposes of implementing experimental programs in 
352.36  learning or school management.  This subdivision shall not 
353.1   prohibit the commissioner from making technical changes or 
353.2   corrections to adopted rules. 
353.3      Sec. 4.  Minnesota Statutes 1998, section 127A.06, is 
353.4   amended to read: 
353.5      127A.06 [RECOMMENDATIONS; BUDGET.] 
353.6      The commissioner of children, families, and learning shall 
353.7   recommend to the governor and legislature such modification and 
353.8   unification of laws relating to the state system of education as 
353.9   shall make those laws more readily understood and more effective 
353.10  in execution.  The commissioner of children, families, and 
353.11  learning shall prepare a biennial education budget which shall 
353.12  be submitted to the governor and legislature, such budget to 
353.13  contain a complete statement of finances pertaining to the 
353.14  maintenance operations of the state department and to the 
353.15  distribution of state aid.  
353.16     Sec. 5.  Minnesota Statutes 1998, section 127A.41, 
353.17  subdivision 7, is amended to read: 
353.18     Subd. 7.  [SCHEDULE ADJUSTMENTS.] (a) It is the intention 
353.19  of the legislature to encourage efficient and effective use of 
353.20  staff and facilities by districts.  Districts are encouraged to 
353.21  consider both cost and energy saving measures. 
353.22     (b) Any district operating a program pursuant to sections 
353.23  124D.12 to 124D.127, 124D.128, or 124D.25 to 124D.29, or 
353.24  operating a commissioner-designated area learning center program 
353.25  under section 123A.09, or that otherwise receives the approval 
353.26  of the commissioner to operate its instructional program to 
353.27  avoid an aid reduction in any year, may adjust the annual school 
353.28  schedule for that program throughout the calendar year.  
353.29     Sec. 6.  Minnesota Statutes 1998, section 127A.42, 
353.30  subdivision 2, is amended to read: 
353.31     Subd. 2.  [VIOLATIONS OF LAW.] The commissioner shall may 
353.32  reduce the district's special state aid for any school year 
353.33  whenever the board of the district authorizes or permits 
353.34  violations of law within the district by:. 
353.35     (1) employing a teacher who does not hold a valid teaching 
353.36  license or permit in a public school; 
354.1      (2) noncompliance with a mandatory rule of general 
354.2   application promulgated by the state board in accordance with 
354.3   statute, unless special circumstances make enforcement 
354.4   inequitable, impose an extraordinary hardship on the district, 
354.5   or the rule is contrary to the district's best interests; 
354.6      (3) the district's continued performance of a contract made 
354.7   for the rental of rooms or buildings for school purposes or for 
354.8   the rental of any facility owned or operated by or under the 
354.9   direction of any private organization, if the contract has been 
354.10  disapproved, the time for review of the determination of 
354.11  disapproval has expired, and no proceeding for review is 
354.12  pending; 
354.13     (4) any practice which is a violation of sections 1 and 2 
354.14  of article 13 of the Constitution of the state of Minnesota; 
354.15     (5) failure to reasonably provide for a resident pupil's 
354.16  school attendance under Minnesota Statutes; or 
354.17     (6) noncompliance with state laws prohibiting 
354.18  discrimination because of race, color, creed, religion, national 
354.19  origin, sex, age, marital status, status with regard to public 
354.20  assistance or disability, as defined in section 363.03. 
354.21  The reduction must be made in the amount and upon the procedure 
354.22  provided in this section or, in the case of the violation stated 
354.23  in clause (1), upon the procedure provided in section 127A.43.  
354.24     Sec. 7.  [REPEALER.] 
354.25     Minnesota Statutes 1998, sections 127A.05, subdivision 5; 
354.26  and 127A.41, subdivision 4, are repealed. 
354.27                             ARTICLE 20 
354.28                 PERPICH CENTER FOR ARTS EDUCATION 
354.29     Section 1.  Minnesota Statutes 1998, section 129C.10, 
354.30  subdivision 3, is amended to read: 
354.31     Subd. 3.  [POWERS AND DUTIES OF BOARD.] (a) The board has 
354.32  the powers necessary for the care, management, and control of 
354.33  the Lola and Rudy Perpich Minnesota center for arts education 
354.34  and all its real and personal property.  The powers shall 
354.35  include, but are not limited to, those listed in this 
354.36  subdivision. 
355.1      (b) The board may employ and discharge necessary employees, 
355.2   and contract for other services to ensure the efficient 
355.3   operation of the center for arts education. 
355.4      (c) The board may receive and award grants.  The board may 
355.5   establish a charitable foundation and accept, in trust or 
355.6   otherwise, any gift, grant, bequest, or devise for educational 
355.7   purposes and hold, manage, invest, and dispose of them and the 
355.8   proceeds and income of them according to the terms and 
355.9   conditions of the gift, grant, bequest, or devise and its 
355.10  acceptance.  The board must adopt internal procedures to 
355.11  administer and monitor aids and grants. 
355.12     (d) The board may establish or coordinate evening, 
355.13  continuing education, extension, and summer programs for 
355.14  teachers and pupils. 
355.15     (e) The board may identify pupils who have artistic talent, 
355.16  either demonstrated or potential, in dance, literary arts, media 
355.17  arts, music, theater, and visual arts, or in more than one art 
355.18  form. 
355.19     (f) The board must educate pupils with artistic talent by 
355.20  providing:  
355.21     (1) an interdisciplinary academic and arts program for 
355.22  pupils in the 11th and 12th grades.  The total number of pupils 
355.23  accepted under this clause and clause (2) shall not exceed 300; 
355.24     (2) additional instruction to pupils for a 13th grade. 
355.25  Pupils eligible for this instruction are those enrolled in 12th 
355.26  grade who need extra instruction and who apply to the board, or 
355.27  pupils enrolled in the 12th grade who do not meet learner 
355.28  outcomes established by the board; 
355.29     (3) intensive arts seminars for one or two weeks for pupils 
355.30  in grades 9 to 12; 
355.31     (4) summer arts institutes for pupils in grades 9 to 12; 
355.32     (5) artist mentor and extension programs in regional sites; 
355.33  and 
355.34     (6) teacher education programs for indirect curriculum 
355.35  delivery. 
355.36     (g) The board may determine the location for the Lola and 
356.1   Rudy Perpich Minnesota center for arts education and any 
356.2   additional facilities related to the center, including the 
356.3   authority to lease a temporary facility. 
356.4      (h) (e) The board must plan for the enrollment of pupils on 
356.5   an equal basis from each congressional district.  
356.6      (i) The board may establish task forces as needed to advise 
356.7   the board on policies and issues.  The task forces expire as 
356.8   provided in section 15.059, subdivision 6.  
356.9      (j) The board may request the commissioner of children, 
356.10  families, and learning for assistance and services. 
356.11     (k) The board may enter into contracts with other public 
356.12  and private agencies and institutions for residential and 
356.13  building maintenance services if it determines that these 
356.14  services could be provided more efficiently and less expensively 
356.15  by a contractor than by the board itself.  The board may also 
356.16  enter into contracts with public or private agencies and 
356.17  institutions, school districts or combinations of school 
356.18  districts, or service cooperatives to provide supplemental 
356.19  educational instruction and services. 
356.20     (l) The board may provide or contract for services and 
356.21  programs by and for the center for arts education, including a 
356.22  store, operating in connection with the center; theatrical 
356.23  events; and other programs and services that, in the 
356.24  determination of the board, serve the purposes of the center. 
356.25     (m) (f) The board may provide for transportation of pupils 
356.26  to and from the center for arts education for all or part of the 
356.27  school year, as the board considers advisable and subject to its 
356.28  rules.  Notwithstanding any other law to the contrary, and the 
356.29  board may charge a reasonable fee for transportation of pupils.  
356.30  Every driver providing transportation of pupils under this 
356.31  paragraph must possess all qualifications required by the state 
356.32  board of education.  The board may contract for furnishing 
356.33  authorized transportation under rules established by the 
356.34  commissioner of children, families, and learning and may 
356.35  purchase and furnish gasoline to a contract carrier for use in 
356.36  the performance of a contract with the board for transportation 
357.1   of pupils to and from the center for arts education.  When 
357.2   transportation is provided, scheduling of routes, establishment 
357.3   of the location of bus stops, the manner and method of 
357.4   transportation, the control and discipline of pupils, and any 
357.5   other related matter is within the sole discretion, control, and 
357.6   management of the board. 
357.7      (n) (g) The board may provide room and board for its pupils.
357.8   If the board provides room and board, it shall charge a 
357.9   reasonable fee for the room and board.  The fee is not subject 
357.10  to chapter 14 and is not a prohibited fee according to sections 
357.11  123B.34 to 123B.39.  
357.12     (o) (h) The board may establish and set fees for services 
357.13  and programs.  If the board sets fees not authorized or 
357.14  prohibited by the Minnesota public school fee law, it may do so 
357.15  without complying with the requirements of section 123B.38.  
357.16     (p) The board may apply for all competitive grants 
357.17  administered by agencies of the state and other government or 
357.18  nongovernment sources.