1.1                          A bill for an act 
  1.2             relating to education; providing for technical and 
  1.3             other changes to kindergarten through grade 12 
  1.4             education provisions; amending Minnesota Statutes 
  1.5             1998, sections 120B.05; 120B.11, subdivision 5; 
  1.6             121A.25, subdivision 1; 123A.22, subdivisions 6 and 7; 
  1.7             123A.27; 123A.48, subdivision 19; 123A.485, 
  1.8             subdivision 1; 123B.14, subdivision 5; 123B.31; 
  1.9             123B.70, subdivision 1; 123B.86, subdivision 1; 
  1.10            123B.88, subdivisions 1, 13, and 22; 123B.95, 
  1.11            subdivision 2; 124D.11, subdivision 5; 124D.114; 
  1.12            124D.21; 124D.38, subdivision 9; 124D.40; 124D.41; 
  1.13            124D.42, subdivisions 4, 6, and 7; 124D.43; 124D.45, 
  1.14            subdivisions 1 and 2; 124D.454, subdivision 8; 
  1.15            124D.53, subdivision 2; 124D.61; 124D.70; 124D.81, 
  1.16            subdivision 1; 124D.83, subdivision 2; 124D.895; 
  1.17            124D.896; 125A.62, subdivision 1; 125A.77, subdivision 
  1.18            1; 125A.79, subdivision 1; 126C.05, subdivisions 4 and 
  1.19            5; 126C.10, subdivision 9; 126C.14; 126C.15, 
  1.20            subdivision 3; 126C.16, subdivisions 1 and 2; 126C.22, 
  1.21            subdivision 4; 126C.41, subdivision 1; 126C.44; 
  1.22            126C.48, subdivisions 2 and 5; 127A.41, subdivision 1; 
  1.23            127A.45, subdivision 13; and 127A.49, subdivisions 2 
  1.24            and 3; Laws 1998, chapter 398, article 5, section 50, 
  1.25            subdivision 1; proposing coding for new law in 
  1.26            Minnesota Statutes, chapter 120A; repealing Minnesota 
  1.27            Statutes 1998, sections 123B.92, subdivision 10; 
  1.28            124D.128, subdivision 4; 124D.38, subdivision 10; and 
  1.29            124D.45, subdivision 3; Laws 1995, First Special 
  1.30            Session chapter 3, article 5, section 9; Laws 1997, 
  1.31            chapter 192, section 19. 
  1.32  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.33     Section 1.  [120A.02] [DEPARTMENT OF CHILDREN, FAMILIES, 
  1.34  AND LEARNING.] 
  1.35     The department of children, families, and learning shall 
  1.36  carry out the provisions of chapters 120A to 129C and other 
  1.37  related education provisions under law. 
  1.38     Sec. 2.  Minnesota Statutes 1998, section 120B.05, is 
  2.1   amended to read: 
  2.2      120B.05 [GRADUATION STANDARDS IMPLEMENTATION REVENUE.] 
  2.3      (a) A school district's graduation standards implementation 
  2.4   revenue is equal to $52 times its resident pupil units for 
  2.5   fiscal year 1999 plus $14 times its resident pupil units for 
  2.6   fiscal year 1999 if the district implements the graduation rule 
  2.7   under section 120B.03, subdivision 1, paragraph (b), and $43 per 
  2.8   pupil unit for all districts for fiscal year 2000 and later.  
  2.9   Graduation standards implementation revenue is reserved and must 
  2.10  be used according to paragraphs (b) and (c). 
  2.11     (b) For fiscal year 1999, revenue must be reserved for 
  2.12  programs according to clauses (1) to (3). 
  2.13     (1) At least $20 per resident pupil unit plus $14 per 
  2.14  resident pupil unit for a district that implements the 
  2.15  graduation rule under section 120B.03, subdivision 1, paragraph 
  2.16  (b), must be allocated to school sites in proportion to the 
  2.17  number of students enrolled at each school site weighted 
  2.18  according to section 126C.05, subdivision 1, and is reserved for 
  2.19  programs designed to enhance the implementation of the 
  2.20  graduation rule through intensive staff development and 
  2.21  decentralized decision making. 
  2.22     (2) At least $5 per resident pupil unit is reserved for 
  2.23  gifted and talented programs that are integrated with the 
  2.24  graduation rule.  This aid must supplement, not supplant, money 
  2.25  spent on gifted and talented programs authorized under Laws 
  2.26  1997, First Special Session chapter 4, article 5, section 24. 
  2.27     (3) Remaining aid under this paragraph must be used: 
  2.28     (i) for technology purposes including wiring, network 
  2.29  connections, and other technology-related infrastructure 
  2.30  improvements; purchase or lease of computer software and 
  2.31  hardware to be used in classrooms and for instructional 
  2.32  purposes; purchase or lease of interactive television network 
  2.33  equipment and network support; purchase or lease of computer 
  2.34  software and hardware designed to support special needs 
  2.35  programming and limited English proficiency programming; network 
  2.36  and technical support; and purchase of textbooks and other 
  3.1   instructional materials; or 
  3.2      (ii) to reduce class size. 
  3.3      (c) For fiscal year 2000 and later, revenue must be 
  3.4   allocated to school sites in proportion to the number of 
  3.5   students enrolled at each school site weighted according to 
  3.6   section 126C.05, subdivision 1, and reserved for programs 
  3.7   designed to enhance the implementation of the graduation rule 
  3.8   through:  (1) staff development programs; (2) technology 
  3.9   purposes under paragraph (b), clause (3); (3) gifted and 
  3.10  talented programs; or (4) class size reduction programs based at 
  3.11  the school site. 
  3.12     (d) To the extent possible, school districts shall make 
  3.13  opportunities for graduation standards implementation available 
  3.14  to teachers employed by intermediate school districts.  If the 
  3.15  commissioner determines that the supplemental appropriation made 
  3.16  for this subdivision under Laws 1998, chapter 398, article 1, 
  3.17  section 40, subdivision 2, is in excess of the amount needed for 
  3.18  this subdivision, the commissioner shall make equal payments of 
  3.19  one-third of the excess to each intermediate school district for 
  3.20  the purpose of paragraph (a). 
  3.21     (e) A district that qualifies for the referendum allowance 
  3.22  reduction under section 126C.17, subdivision 12, and whose 
  3.23  referendum allowance under section 126C.17, subdivision 1, as 
  3.24  adjusted under section 126C.17, subdivisions 2 and 12, does not 
  3.25  exceed the referendum allowance limit under section 126C.17, 
  3.26  subdivision 2, clause (2), shall receive a graduation standards 
  3.27  implementation equity adjustment.  In fiscal year 1999, the 
  3.28  equity adjustment aid is equal to $34 per resident pupil unit.  
  3.29  In fiscal year 2000 and thereafter, the equity adjustment is 
  3.30  equal to $25 per resident pupil unit. 
  3.31     Sec. 3.  Minnesota Statutes 1998, section 120B.11, 
  3.32  subdivision 5, is amended to read: 
  3.33     Subd. 5.  [REPORT.] (a) By October 1 of each year, the 
  3.34  school board shall use standard statewide reporting procedures 
  3.35  the commissioner develops and adopt a report that includes the 
  3.36  following: 
  4.1      (1) student performance goals for meeting state graduation 
  4.2   standards adopted for that year; 
  4.3      (2) results of local assessment data, and any additional 
  4.4   test data; 
  4.5      (3) the annual school district improvement plans; 
  4.6      (4) information about district and learning site progress 
  4.7   in realizing previously adopted improvement plans; and 
  4.8      (5) the amount and type of revenue attributed to each 
  4.9   education site as defined in section 123B.04, subdivision 2. 
  4.10     (b) The school board shall publish the report in the local 
  4.11  newspaper with the largest circulation in the district or by 
  4.12  mail.  The board shall make a copy of the report available to 
  4.13  the public for inspection.  The board shall send a copy of the 
  4.14  report to the commissioner of children, families, and learning 
  4.15  by October 15 of each year. 
  4.16     (c) The title of the report shall contain the name and 
  4.17  number of the school district and read "Annual Report on 
  4.18  Curriculum, Instruction, and Student Performance."  The report 
  4.19  must include at least the following information about advisory 
  4.20  committee membership: 
  4.21     (1) the name of each committee member and the date when 
  4.22  that member's term expires; 
  4.23     (2) the method and criteria the school board uses to select 
  4.24  committee members; and 
  4.25     (3) the date by which a community resident must apply to 
  4.26  next serve on the committee. 
  4.27     Sec. 4.  Minnesota Statutes 1998, section 121A.25, 
  4.28  subdivision 1, is amended to read: 
  4.29     Subdivision 1.  [APPLICABILITY.] The definitions in this 
  4.30  section apply to Laws 1987, chapter 295 sections 121A.26 to 
  4.31  121A.29 and 121A.61, subdivision 3. 
  4.32     Sec. 5.  Minnesota Statutes 1998, section 123A.22, 
  4.33  subdivision 6, is amended to read: 
  4.34     Subd. 6.  [COMMISSIONER APPROVAL.] Prior to the 
  4.35  commencement of the operation of any center Before a center 
  4.36  begins operation, the commissioner must approve the agreement 
  5.1   establishing the center entered into by participating districts 
  5.2   shall be approved by the commissioner. 
  5.3      Sec. 6.  Minnesota Statutes 1998, section 123A.22, 
  5.4   subdivision 7, is amended to read: 
  5.5      Subd. 7.  [LAWS GOVERNING INDEPENDENT SCHOOL DISTRICTS 
  5.6   APPLY.] As of the effective date of the creation of any center 
  5.7   as contained in the agreement establishing the center, the 
  5.8   organization, operation, maintenance, and conduct of the affairs 
  5.9   of the center shall be governed by the general laws relating to 
  5.10  independent school districts of the state unless provided 
  5.11  otherwise herein or by statute passed hereafter in statute. 
  5.12     Sec. 7.  Minnesota Statutes 1998, section 123A.27, is 
  5.13  amended to read: 
  5.14     123A.27 [RESERVED REVENUE FOR DISTRICT COOPERATION.] 
  5.15     A district that was a member of an intermediate school 
  5.16  district organized pursuant to chapter 136D on July 1, 1996, 
  5.17  must place a portion of its general education revenue in a 
  5.18  reserved account for instructional services from entities formed 
  5.19  for cooperative services for special education programs and 
  5.20  secondary vocational programs.  The amount reserved is equal to 
  5.21  the levy made according to Minnesota Statutes 1993 Supplement, 
  5.22  section 124.2727, subdivision 6, for taxes payable in 1994 
  5.23  divided by the actual pupil units in the intermediate school 
  5.24  district for fiscal year 1995 times the number of actual pupil 
  5.25  units in the school district in 1995.  The district must use 
  5.26  5/11 of the revenue for special education and 6/11 of the 
  5.27  revenue for secondary vocational education.  The district must 
  5.28  demonstrate that the revenue is being used to provide the full 
  5.29  range of special education and secondary vocational programs and 
  5.30  services available to each child served by the intermediate.  
  5.31  The secondary vocational programs and services must meet the 
  5.32  requirements established in an articulation agreement developed 
  5.33  between the state board of education and the board of trustees 
  5.34  of the Minnesota state colleges and universities. 
  5.35     A district that was a member of an education district 
  5.36  organized pursuant to section 123A.15 on July 1, 1999, must 
  6.1   place a portion of its general education revenue in a reserve 
  6.2   account for instructional services from entities formed for 
  6.3   cooperative services.  Services may include secondary vocational 
  6.4   programs, special education programs, staff development, and 
  6.5   gifted and talented instruction.  The amount reserved is equal 
  6.6   to $50 per pupil unit times the actual number of pupil units in 
  6.7   the district. 
  6.8      Sec. 8.  Minnesota Statutes 1998, section 123A.48, 
  6.9   subdivision 19, is amended to read: 
  6.10     Subd. 19.  [BONDS; ELECTION.] The board of the newly 
  6.11  created district, when constituted as provided in Minnesota 
  6.12  Statutes 1990, section 122.23, subdivision 17, may provide for 
  6.13  an election of that district on the issuance of bonds.  It may 
  6.14  issue and sell bonds authorized at the election, or bonds 
  6.15  authorized at an election previously held in any preexisting 
  6.16  district wholly included within the newly created district, or 
  6.17  bonds for a purpose for which an election is not required by 
  6.18  law.  The actions may be taken at any time after the date of the 
  6.19  county auditor's order issued under Minnesota Statutes 1990, 
  6.20  section 122.23, subdivision 17, and before or after the date 
  6.21  upon which the consolidation becomes effective for other 
  6.22  purposes, and taxes for the payment of the bonds shall be levied 
  6.23  upon all taxable property in the newly created district.  No 
  6.24  bonds shall be delivered to purchasers until 30 days after the 
  6.25  date of the county auditor's order.  If within this period a 
  6.26  notice of appeal from the county auditor's order to the district 
  6.27  court is filed in accordance with section 123A.49, no bonds 
  6.28  shall be delivered by the newly created district to purchasers 
  6.29  unless: 
  6.30     (1) the county auditor's order is affirmed by final order 
  6.31  of the district court in the special proceeding, and a period of 
  6.32  30 days from the service of the final order expires without an 
  6.33  appeal being commenced; or 
  6.34     (2) if an appeal is taken, the order is affirmed and the 
  6.35  time for petitioning for further review has expired.  
  6.36  Notwithstanding the pendency of the appeal, if all of the 
  7.1   territory of one and only one independent district maintaining a 
  7.2   secondary school is included in the newly created district, and 
  7.3   if the net tax capacity of taxable property in the territory 
  7.4   comprises 90 percent or more of the net tax capacity of all 
  7.5   taxable property in the newly created district, then the board 
  7.6   may issue, sell, and deliver any bonds voted by the preexisting 
  7.7   independent district and any bonds voted or otherwise authorized 
  7.8   by the newly created district, and the bonds must be paid by the 
  7.9   levy of taxes upon the property within the territory of the 
  7.10  preexisting independent district and within the other areas, if 
  7.11  any, that are finally determined to be properly included within 
  7.12  the newly created district.  In any election held in the newly 
  7.13  created district as authorized in the preceding sentence, all 
  7.14  qualified electors residing within the area of that district as 
  7.15  defined in the county auditor's order shall be entitled to vote, 
  7.16  but the votes cast by residents of former districts or portions 
  7.17  of former districts included in the area, other than the 
  7.18  independent district maintaining the secondary school, shall be 
  7.19  received and counted separately.  The bonds must not be issued 
  7.20  and sold unless authorized by a majority of the votes cast 
  7.21  thereon by electors of the independent district maintaining the 
  7.22  secondary school, and also by a majority of the votes cast 
  7.23  thereon by electors residing within the entire area of the newly 
  7.24  created district.  
  7.25     Sec. 9.  Minnesota Statutes 1998, section 123A.485, 
  7.26  subdivision 1, is amended to read: 
  7.27     Subdivision 1.  [ELIGIBILITY AND USE.] A district that has 
  7.28  been reorganized after June 30, 1994, under section 123A.48 is 
  7.29  eligible for consolidation transition revenue.  Revenue is equal 
  7.30  to the sum of aid under subdivision 2 and levy under subdivision 
  7.31  3.  Consolidation transition revenue may only be used according 
  7.32  to this section.  Revenue must be used for the following 
  7.33  purposes and may be distributed among these purposes at the 
  7.34  discretion of the district: 
  7.35     (1) to offer early retirement incentives as provided by 
  7.36  section 123A.48, subdivision 23; 
  8.1      (2) to reduce operating debt as defined in section 123B.82; 
  8.2      (3) to enhance learning opportunities for students in the 
  8.3   reorganized district; and 
  8.4      (4) for other costs incurred in the reorganization. 
  8.5      Revenue received and utilized under clause (3) or (4) may 
  8.6   be expended for operating, facilities, and/or equipment.  
  8.7   Revenue received under this section must not be included in the 
  8.8   determination of the reduction under section 124A.26, 
  8.9   subdivision 1.  
  8.10     Sec. 10.  Minnesota Statutes 1998, section 123B.14, 
  8.11  subdivision 5, is amended to read: 
  8.12     Subd. 5.  [INSUFFICIENT FUNDS.] In the event that valid 
  8.13  orders are presented to the treasurer for payment, and there are 
  8.14  insufficient funds on hand to pay them, the treasurer shall 
  8.15  receive, endorse and process them in accordance with section 
  8.16  124.06 123B.12. 
  8.17     Sec. 11.  Minnesota Statutes 1998, section 123B.31, is 
  8.18  amended to read: 
  8.19     123B.31 [LIMITATION OF SECTIONS.] 
  8.20     Material contained in sections 120B.09, 120B.14, 120B.35, 
  8.21  121A.21, 121A.24, 122A.44, 122A.69, 123A.22, 123A.24, 123B.02, 
  8.22  subdivisions 1 to 15 and 17 to 20, 123B.09, 123B.11, 123B.14, 
  8.23  123B.143, 123B.147, 123B.23, 123B.49, 123B.51, 123B.52, 123B.88, 
  8.24  124D.02, 124D.09, and 124D.51, unless expressly stated 
  8.25  otherwise, relates only to independent school districts. 
  8.26     Sec. 12.  Minnesota Statutes 1998, section 123B.70, 
  8.27  subdivision 1, is amended to read: 
  8.28     Subdivision 1.  [COMMISSIONER APPROVAL.] In determining 
  8.29  whether to give a school facility a positive, negative, or 
  8.30  unfavorable review and comment, the commissioner must evaluate 
  8.31  the proposals for facilities using the information provided 
  8.32  under section 123B.71, subdivision 9. 
  8.33     The commissioner may submit a negative review and comment 
  8.34  for a project if the district has not submitted its capital 
  8.35  facilities plan required under section 124.243, subdivision 1, 
  8.36  to the commissioner. 
  9.1      Sec. 13.  Minnesota Statutes 1998, section 123B.86, 
  9.2   subdivision 1, is amended to read: 
  9.3      Subdivision 1.  [GENERAL PROVISIONS.] A district shall 
  9.4   provide equal transportation within the district for all school 
  9.5   children to any school when transportation is deemed necessary 
  9.6   by the school board because of distance or traffic condition in 
  9.7   like manner and form as provided in sections 123B.88 and 124.223 
  9.8   123B.92, when applicable. 
  9.9      Sec. 14.  Minnesota Statutes 1998, section 123B.88, 
  9.10  subdivision 1, is amended to read: 
  9.11     Subdivision 1.  [PROVIDING TRANSPORTATION.] The board may 
  9.12  provide for the transportation of pupils to and from school and 
  9.13  for any other purpose.  The board may also provide for the 
  9.14  transportation of pupils to schools in other districts for 
  9.15  grades and departments not maintained in the district, including 
  9.16  high school, at the expense of the district, when funds are 
  9.17  available therefor and if agreeable to the district to which it 
  9.18  is proposed to transport the pupils, for the whole or a part of 
  9.19  the school year, as it may deem advisable, and subject to its 
  9.20  rules.  In any district, the board must arrange for the 
  9.21  attendance of all pupils living two miles or more from the 
  9.22  school, except pupils whose transportation privileges have been 
  9.23  voluntarily surrendered under subdivision 2, or whose privileges 
  9.24  have been revoked under section 123B.91, subdivision 1, clause 
  9.25  (6), or 123B.90, paragraph (b), or whose privileges have been 
  9.26  voluntarily surrendered under subdivision 1a subdivision 2.  The 
  9.27  district may provide for the transportation of or the boarding 
  9.28  and rooming of the pupils who may be more economically and 
  9.29  conveniently provided for by that means.  Arrangements for 
  9.30  attendance may include a requirement that parents or guardians 
  9.31  request transportation before it is provided.  The board must 
  9.32  provide transportation to and from the home of a child with a 
  9.33  disability not yet enrolled in kindergarten when special 
  9.34  instruction and services under sections 125A.03 to 125A.24, 
  9.35  125A.26 to 125A.48, and 125A.65 are provided in a location other 
  9.36  than in the child's home.  When transportation is provided, 
 10.1   scheduling of routes, establishment of the location of bus 
 10.2   stops, manner and method of transportation, control and 
 10.3   discipline of school children and any other matter relating 
 10.4   thereto must be within the sole discretion, control, and 
 10.5   management of the board.  The district may provide for the 
 10.6   transportation of pupils or expend a reasonable amount for room 
 10.7   and board of pupils whose attendance at school can more 
 10.8   economically and conveniently be provided for by that means or 
 10.9   who attend school in a building rented or leased by a district 
 10.10  within the confines of an adjacent district. 
 10.11     Sec. 15.  Minnesota Statutes 1998, section 123B.88, 
 10.12  subdivision 13, is amended to read: 
 10.13     Subd. 13.  [AREA LEARNING CENTER PUPILS.] Districts may 
 10.14  provide bus transportation along school bus routes established 
 10.15  to provide nonregular transportation as defined in section 
 10.16  123B.92, subdivision 1, paragraph (e)(2)(ii), when space is 
 10.17  available, for pupils attending programs at an area learning 
 10.18  center.  The transportation is only permitted between schools 
 10.19  and if it does not increase the district's expenditures for 
 10.20  transportation.  The cost of these services shall be considered 
 10.21  part of the authorized cost for nonregular transportation for 
 10.22  the purpose of section 123B.92. 
 10.23     Sec. 16.  Minnesota Statutes 1998, section 123B.88, 
 10.24  subdivision 22, is amended to read: 
 10.25     Subd. 22.  [POST-SECONDARY ENROLLMENT OPTIONS PUPILS.] 
 10.26  Districts may provide bus transportation along school bus routes 
 10.27  established to provide nonregular transportation as defined in 
 10.28  section 123B.92, subdivision 1, paragraph (c), clause (2), when 
 10.29  space is available, for pupils attending programs at a 
 10.30  post-secondary institution under the post-secondary enrollment 
 10.31  options program.  The transportation is permitted only if it 
 10.32  does not increase the district's expenditures for 
 10.33  transportation.  Fees collected for this service under section 
 10.34  123B.36, subdivision 1, paragraph (13), shall be subtracted from 
 10.35  the authorized cost for nonregular transportation for the 
 10.36  purpose of section 123B.92. 
 11.1      Sec. 17.  Minnesota Statutes 1998, section 123B.95, 
 11.2   subdivision 2, is amended to read: 
 11.3      Subd. 2.  [FINANCES.] The board must submit to the annual 
 11.4   meeting an estimate of the expenses of the district for the 
 11.5   coming year for a school term as determined by the board and for 
 11.6   such other specified purposes as the board may deem proper.  If 
 11.7   the annual meeting fails to vote a sufficient tax to maintain 
 11.8   the district for such time, the board must levy such tax 
 11.9   pursuant to and within the limitations of sections 124.226, 
 11.10  124D.22, 126C.40 to 126C.45, and 126C.48; but no board shall 
 11.11  expend any money or incur any liability for any purpose beyond 
 11.12  the sum appropriated by vote of the district for such purpose, 
 11.13  or levied by the board pursuant to this subdivision, or on hand 
 11.14  and applicable thereto. 
 11.15     Sec. 18.  Minnesota Statutes 1998, section 124D.11, 
 11.16  subdivision 5, is amended to read: 
 11.17     Subd. 5.  [SPECIAL EDUCATION AID.] Except as provided in 
 11.18  subdivision 2, paragraph (b), special education aid must be paid 
 11.19  to a charter school according to section 125A.76, as though it 
 11.20  were a school district.  The charter school may charge tuition 
 11.21  to the district of residence as provided in section 125A.11.  
 11.22  The charter school shall allocate its special education levy 
 11.23  equalization revenue to the resident districts of the pupils 
 11.24  attending the charter school.  The districts of residence shall 
 11.25  levy as though they were participating in a cooperative, as 
 11.26  provided in section 125A.77, subdivision 3. 
 11.27     Sec. 19.  Minnesota Statutes 1998, section 124D.114, is 
 11.28  amended to read: 
 11.29     124D.114 [LACTOSE REDUCED MILK.] 
 11.30     (a) If a nonpublic school or district receives school lunch 
 11.31  aid under section 124D.111 or participates in the school 
 11.32  breakfast program and receives a written request from the parent 
 11.33  of a pupil who is lactose intolerant, then the nonpublic school 
 11.34  or district must make available lactose reduced milk; milk 
 11.35  fortified with lactase in liquid, tablet, granular, or other 
 11.36  form; or milk to which lactobacillus acidophilus has been added 
 12.1   for the pupil.  
 12.2      (b) Notwithstanding any law, local ordinance, or local 
 12.3   regulation to the contrary, a school may pour or serve portions 
 12.4   of any product required by this section from a large container 
 12.5   of the product at the time and place the pupil is being served. 
 12.6      Sec. 20.  Minnesota Statutes 1998, section 124D.21, is 
 12.7   amended to read: 
 12.8      124D.21 [ADDITIONAL COMMUNITY EDUCATION REVENUE.] 
 12.9      (a) A district that is eligible under section 124D.20, 
 12.10  subdivision 2, may levy an amount up to the amount authorized by 
 12.11  Minnesota Statutes 1986, section 275.125, subdivision 8, clause 
 12.12  (2).  
 12.13     (b) Beginning with levies for fiscal year 1995, this levy 
 12.14  must be reduced each year by the amount of any increase in the 
 12.15  levying district's general community education revenue under 
 12.16  section 124D.20, subdivision 3, for that fiscal year over the 
 12.17  amount received by the district under Minnesota Statutes 1992, 
 12.18  section 124.2713, subdivision 3, for fiscal year 1994. 
 12.19     (c) The proceeds of the levy may be used for the purposes 
 12.20  set forth in section 124D.20, subdivision 8. 
 12.21     Sec. 21.  Minnesota Statutes 1998, section 124D.38, 
 12.22  subdivision 9, is amended to read: 
 12.23     Subd. 9.  [COMMISSION.] "Commission" means the Minnesota 
 12.24  commission on national and community service established in 
 12.25  section 121.703 124D.385. 
 12.26     Sec. 22.  Minnesota Statutes 1998, section 124D.40, is 
 12.27  amended to read: 
 12.28     124D.40 [YOUTH WORKS GRANTS.] 
 12.29     Subdivision 1.  [APPLICATION.] An eligible organization 
 12.30  interested in receiving a grant under sections 124D.39 to 
 12.31  124D.44 may prepare and submit to the commission, and beginning 
 12.32  January 1, 1997, the council, an application that complies with 
 12.33  section 124D.41. 
 12.34     Subd. 2.  [GRANT AUTHORITY.] The commission and, beginning 
 12.35  January 1, 1997, the council must use any state appropriation 
 12.36  and any available federal funds, including any grant received 
 13.1   under federal law, to award grants to establish programs for 
 13.2   youth works meeting the requirements of section 124D.41.  At 
 13.3   least one grant each must be available for a metropolitan 
 13.4   proposal, a rural proposal, and a statewide proposal.  If a 
 13.5   portion of the suburban metropolitan area is not included in the 
 13.6   metropolitan grant proposal, the statewide grant proposal must 
 13.7   incorporate at least one suburban metropolitan area.  In 
 13.8   awarding grants, the commission and, beginning January 1, 1997, 
 13.9   the council may select at least one residential proposal and one 
 13.10  nonresidential proposal, provided the proposals meet or exceed 
 13.11  the criteria in section 124D.41. 
 13.12     Sec. 23.  Minnesota Statutes 1998, section 124D.41, is 
 13.13  amended to read: 
 13.14     124D.41 [GRANT APPLICATIONS.] 
 13.15     Subdivision 1.  [APPLICATIONS REQUIRED.] An organization 
 13.16  seeking federal or state grant money under sections 124D.39 to 
 13.17  124D.44 shall prepare and submit to the commission and, 
 13.18  beginning January 1, 1997, the council an application that meets 
 13.19  the requirements of this section.  The commission and, beginning 
 13.20  January 1, 1997, the council must develop, and the applying 
 13.21  organizations must comply with, the form and manner of the 
 13.22  application. 
 13.23     Subd. 2.  [APPLICATION CONTENT.] An applicant on its 
 13.24  application must: 
 13.25     (1) propose a program to provide participants the 
 13.26  opportunity to perform community service to meet specific unmet 
 13.27  community needs, and participate in classroom, work-based, and 
 13.28  service-learning; 
 13.29     (2) assess the community's unmet educational, human, 
 13.30  environmental, and public safety needs, the resources and 
 13.31  programs available for meeting those needs, and how young people 
 13.32  participated in assessing community needs; 
 13.33     (3) describe the educational component of the program, 
 13.34  including classroom hours per week, classroom time for 
 13.35  participants to reflect on the program experience, and 
 13.36  anticipated academic outcomes related to the service experience; 
 14.1      (4) describe the work to be performed, the ratio of youth 
 14.2   participants to crew leaders and mentors, and the expectations 
 14.3   and qualifications for crew leaders and mentors; 
 14.4      (5) describe local funds or resources available to meet the 
 14.5   match requirements of section 124D.44; 
 14.6      (6) describe any funds available for the program from 
 14.7   sources other than the requested grant; 
 14.8      (7) describe any agreements with local businesses to 
 14.9   provide participants with work-learning opportunities and 
 14.10  mentors; 
 14.11     (8) describe any agreement with local post-secondary 
 14.12  educational institutions to offer participants course credits 
 14.13  for their community service-learning experience; 
 14.14     (9) describe any agreement with a local high school or an 
 14.15  alternative learning center to provide remedial education, 
 14.16  credit for community service work and work-based learning, or 
 14.17  graduate equivalency degrees; 
 14.18     (10) describe any pay for service or other program delivery 
 14.19  mechanism that will provide reimbursement for benefits conferred 
 14.20  or recover costs of services participants perform; 
 14.21     (11) describe how local resources will be used to provide 
 14.22  support and assistance for participants to encourage them to 
 14.23  continue with the program, fulfill the terms of the contract, 
 14.24  and remain eligible for any postservice benefit; 
 14.25     (12) describe the arbitration mechanism for dispute 
 14.26  resolution required under section 124D.42, subdivision 2; 
 14.27     (13) describe involvement of community leaders in 
 14.28  developing broad-based support for the program; 
 14.29     (14) describe the consultation and sign-off process to be 
 14.30  used with any local labor organization representing employees in 
 14.31  the area engaged in work similar to that proposed for the 
 14.32  program to ensure that no current employees or available 
 14.33  employment positions will be displaced by program participants; 
 14.34     (15) certify to the commission and, beginning January 1, 
 14.35  1997, the council, and to any certified bargaining 
 14.36  representatives representing employees of the applying 
 15.1   organization that the project will not decrease employment 
 15.2   opportunities that would be available without the project; will 
 15.3   not displace current employees including any partial 
 15.4   displacement in the form of reduced hours of work other than 
 15.5   overtime, wages, employment benefits, or regular seasonal work; 
 15.6   will not impair existing labor agreements; and will not result 
 15.7   in the substitution of project funding for preexisting funds or 
 15.8   sources of funds for ongoing work; 
 15.9      (16) describe the length of the required service period, 
 15.10  which may not be less than six months or more than two years, a 
 15.11  method to incorporate a participant's readiness to advance or 
 15.12  need for postservice financial assistance into individual 
 15.13  service requirements, and any opportunity for participating part 
 15.14  time or in another program; 
 15.15     (17) describe a program evaluation plan that contains 
 15.16  cost-effectiveness measures, measures of participant success 
 15.17  including educational accomplishments, job placements, community 
 15.18  contributions, and ongoing volunteer activities, outcome 
 15.19  measures based on a preprogram and postprogram survey of 
 15.20  community rates of arrest, incarceration, teenage pregnancy, and 
 15.21  other indicators of youth in trouble, and a list of local 
 15.22  resources dedicated to reducing these rates; 
 15.23     (18) describe a three-year financial plan for maintaining 
 15.24  the program; 
 15.25     (19) describe the role of local youth in developing all 
 15.26  aspects of the grant proposal; and 
 15.27     (20) describe the process by which the local private 
 15.28  industry council participated in, and reviewed the grant 
 15.29  application. 
 15.30     Sec. 24.  Minnesota Statutes 1998, section 124D.42, 
 15.31  subdivision 4, is amended to read: 
 15.32     Subd. 4.  [USES OF POSTSERVICE BENEFITS.] (a) A postservice 
 15.33  benefit for a participant provided under subdivision 3, 
 15.34  paragraph (a), (b), or (c), must be available for seven years 
 15.35  after completing the program and may only be used for: 
 15.36     (1) paying a student loan; 
 16.1      (2) costs of attending an institution of higher education; 
 16.2   or 
 16.3      (3) expenses incurred by a student in an approved youth 
 16.4   apprenticeship program under sections 124D.46 to 124D.49 or in a 
 16.5   registered apprenticeship program approved by the department of 
 16.6   labor and industry. 
 16.7   Financial assistance provided under this subdivision must be in 
 16.8   the form of vendor payments whenever possible.  Any postservice 
 16.9   benefits provided by federal funds or vouchers may be used as a 
 16.10  downpayment on, or closing costs for, purchasing a first home. 
 16.11     (b) Postservice benefits are to be used to develop skills 
 16.12  required in occupations where numbers of jobs are likely to 
 16.13  increase.  The commission, in consultation with the workforce 
 16.14  development council, and beginning January 1, 1997, the 
 16.15  workforce development council, must determine how the benefits 
 16.16  may be used in order to best prepare participants with skills 
 16.17  that build on their service-learning and equip them for 
 16.18  meaningful employment. 
 16.19     (c) The postservice benefit must not be included in 
 16.20  determining financial need when establishing eligibility or 
 16.21  award amounts for financial assistance programs under chapter 
 16.22  136A. 
 16.23     Sec. 25.  Minnesota Statutes 1998, section 124D.42, 
 16.24  subdivision 6, is amended to read: 
 16.25     Subd. 6.  [PROGRAM TRAINING.] (a) The commission and, 
 16.26  beginning January 1, 1997, the council must, within available 
 16.27  resources, ensure an opportunity for each participant to have 
 16.28  three weeks of training in a residential setting.  If offered, 
 16.29  each training session must: 
 16.30     (1) orient each participant in the nature, philosophy, and 
 16.31  purpose of the program; 
 16.32     (2) build an ethic of community service through general 
 16.33  community service training; and 
 16.34     (3) provide additional training as it determines necessary. 
 16.35     (b) Each grantee organization shall also train participants 
 16.36  in skills relevant to the community service opportunity. 
 17.1      Sec. 26.  Minnesota Statutes 1998, section 124D.42, 
 17.2   subdivision 7, is amended to read: 
 17.3      Subd. 7.  [TRAINING AND EDUCATION REQUIREMENTS.] Each 
 17.4   grantee organization must assess the educational level of each 
 17.5   entering participant.  Each grantee shall work to enhance the 
 17.6   educational skills of each participant.  The commission and, 
 17.7   beginning January 1, 1997, the council may coordinate or 
 17.8   contract with educational institutions or other providers for 
 17.9   educational services and evaluation.  All grantees shall give 
 17.10  priority to educating and training participants who do not have 
 17.11  a high school diploma or its equivalent, or who cannot afford 
 17.12  post-secondary training and education. 
 17.13     Sec. 27.  Minnesota Statutes 1998, section 124D.43, is 
 17.14  amended to read: 
 17.15     124D.43 [PRIORITY GIVEN TO ELIGIBLE ORGANIZATION MEETING 
 17.16  SPECIFIC GOALS.] 
 17.17     The commission and, beginning January 1, 1997, the council 
 17.18  must give priority to an eligible organization proposing a 
 17.19  program that meets the goals of sections 124D.39 to 124D.42, and 
 17.20  that: 
 17.21     (1) involves youth in a meaningful way in all stages of the 
 17.22  program, including assessing community needs, preparing the 
 17.23  application, and assuming postservice leadership and mentoring 
 17.24  responsibilities; 
 17.25     (2) serves a community with significant unmet needs; 
 17.26     (3) provides an approach that is most likely to reduce 
 17.27  arrest rates, incarceration rates, teenage pregnancy, and other 
 17.28  indicators of troubled youth; 
 17.29     (4) builds linkages with existing, successful programs; and 
 17.30     (5) can be operational quickly. 
 17.31     Sec. 28.  Minnesota Statutes 1998, section 124D.45, 
 17.32  subdivision 1, is amended to read: 
 17.33     Subdivision 1.  [GRANTEE ORGANIZATIONS.] Each grantee 
 17.34  organization shall report to the commission and, beginning 
 17.35  January 1, 1997, the council at the time and on the matters 
 17.36  requested by the commission and, beginning January 1, 1997, the 
 18.1   council. 
 18.2      Sec. 29.  Minnesota Statutes 1998, section 124D.45, 
 18.3   subdivision 2, is amended to read: 
 18.4      Subd. 2.  [INTERIM REPORT.] The commission and, beginning 
 18.5   January 1, 1997, the council must report semiannually to the 
 18.6   legislature with interim recommendations to change the program. 
 18.7      Sec. 30.  Minnesota Statutes 1998, section 124D.454, 
 18.8   subdivision 8, is amended to read: 
 18.9      Subd. 8.  [USE OF AID.] The aid provided pursuant to under 
 18.10  this section shall be paid only for services rendered as 
 18.11  designated in subdivision 2 or for the costs designated in 
 18.12  subdivision 3 which are incurred in according to this section 
 18.13  for school-to-work programs for children with a disability which 
 18.14  are approved by the commissioner of children, families, and 
 18.15  learning and operated in accordance with rules promulgated by 
 18.16  the state board.  These rules shall be subject to the 
 18.17  restrictions provided in section 124D.453, subdivision 6.  The 
 18.18  procedure for application for approval of these programs shall 
 18.19  be as provided in section 125A.75, subdivisions 4 and 6, and the 
 18.20  application review process shall be conducted by the office of 
 18.21  lifework development in the department. 
 18.22     Sec. 31.  Minnesota Statutes 1998, section 124D.53, 
 18.23  subdivision 2, is amended to read: 
 18.24     Subd. 2.  [PROGRAMS FUNDED.] Adult basic education programs 
 18.25  established under section 124D.52 and approved by the 
 18.26  commissioner are eligible for revenue aid under this section. 
 18.27     Sec. 32.  Minnesota Statutes 1998, section 124D.61, is 
 18.28  amended to read: 
 18.29     124D.61 [GENERAL REQUIREMENTS FOR PROGRAMS.] 
 18.30     A district which receives aid pursuant to section 124.273 
 18.31  124D.65 must comply with the following program requirements: 
 18.32     (1) to the extent possible, the district must avoid 
 18.33  isolating children of limited English proficiency for a 
 18.34  substantial part of the school day; and 
 18.35     (2) in predominantly nonverbal subjects, such as art, 
 18.36  music, and physical education, pupils of limited English 
 19.1   proficiency shall be permitted to participate fully and on an 
 19.2   equal basis with their contemporaries in public school classes 
 19.3   provided for these subjects.  To the extent possible, the 
 19.4   district must assure to pupils enrolled in a program for limited 
 19.5   English proficient students an equal and meaningful opportunity 
 19.6   to participate fully with other pupils in all extracurricular 
 19.7   activities. 
 19.8      Sec. 33.  Minnesota Statutes 1998, section 124D.70, is 
 19.9   amended to read: 
 19.10     124D.70 [ADDITIONAL REVENUE FOR HOMELESS STUDENTS.] 
 19.11     In addition to revenue received under sections 124D.68, 
 19.12  subdivisions 8 and 9, and 124D.69, subdivision 1, a district 
 19.13  shall receive additional revenue for homeless pupils who are 
 19.14  eligible to participate in the graduation incentives program 
 19.15  according to section 124D.68, subdivision 1 2, paragraph (a), 
 19.16  clause (9), equal to $100 per pupil unit.  The revenue received 
 19.17  under this section shall be used for expanding education 
 19.18  services to include preschool, after-school, or summer school 
 19.19  programs to provide transition and follow-up services to 
 19.20  homeless pupils who are placed or mainstreamed in a district 
 19.21  school, or to provide parent education and support services.  
 19.22  The additional revenue shall be paid to the public or nonprofit 
 19.23  school program providing services to homeless pupils.  A student 
 19.24  shall not be considered homeless under this section if the 
 19.25  student was displaced from home as a result of a natural 
 19.26  disaster. 
 19.27     Sec. 34.  Minnesota Statutes 1998, section 124D.81, 
 19.28  subdivision 1, is amended to read: 
 19.29     Subdivision 1.  [GRANTS; PROCEDURES.] Each fiscal year the 
 19.30  state board of education must make grants to no fewer than six 
 19.31  American Indian language and culture education programs.  At 
 19.32  least three programs must be in urban areas and at least three 
 19.33  must be on or near reservations.  The board of a local district, 
 19.34  a participating school or a group of boards may develop a 
 19.35  proposal for grants in support of American Indian language and 
 19.36  culture education programs.  Proposals may provide for contracts 
 20.1   for the provision of program components by nonsectarian 
 20.2   nonpublic, community, tribal, or alternative schools.  The 
 20.3   commissioner shall prescribe the form and manner of application 
 20.4   for grants, and no grant shall be made for a proposal not 
 20.5   complying with the requirements of sections 126.45 124D.71 to 
 20.6   126.55 124D.82.  The state board must submit all proposals to 
 20.7   the state advisory task force on American Indian language and 
 20.8   culture education programs for its recommendations concerning 
 20.9   approval, modification, or disapproval and the amounts of grants 
 20.10  to approved programs. 
 20.11     Sec. 35.  Minnesota Statutes 1998, section 124D.83, 
 20.12  subdivision 2, is amended to read: 
 20.13     Subd. 2.  [REVENUE AMOUNT.] An American Indian-controlled 
 20.14  tribal contract or grant school that is located on a reservation 
 20.15  within the state and that complies with the requirements in 
 20.16  subdivision 1 is eligible to receive tribal contract or grant 
 20.17  school aid.  The amount of aid is derived by: 
 20.18     (1) multiplying the formula allowance under section 
 20.19  126C.10, subdivision 2, less $170, times the difference between 
 20.20  (i) the resident pupil units as defined in section 124A.02 
 20.21  126C.05, subdivision 15 6, in average daily membership, 
 20.22  excluding section 126C.05, subdivision 13, and (ii) the number 
 20.23  of pupils for the current school year, weighted according to 
 20.24  section 126C.05, subdivision 1, receiving benefits under section 
 20.25  123B.42 or 123B.44 or for which the school is receiving 
 20.26  reimbursement under section 124D.69; 
 20.27     (2) adding to the result in clause (1) an amount equal to 
 20.28  the product of the formula allowance under section 126C.10, 
 20.29  subdivision 2, less $300 times the tribal contract compensation 
 20.30  revenue pupil units; 
 20.31     (3) subtracting from the result in clause (2) the amount of 
 20.32  money allotted to the school by the federal government through 
 20.33  Indian School Equalization Program of the Bureau of Indian 
 20.34  Affairs, according to Code of Federal Regulations, title 25, 
 20.35  part 39, subparts A to E, for the basic program as defined by 
 20.36  section 39.11, paragraph (b), for the base rate as applied to 
 21.1   kindergarten through twelfth grade, excluding small school 
 21.2   adjustments and additional weighting, but not money allotted 
 21.3   through subparts F to L for contingency funds, school board 
 21.4   training, student training, interim maintenance and minor 
 21.5   repair, interim administration cost, prekindergarten, and 
 21.6   operation and maintenance, and the amount of money that is 
 21.7   received according to section 124D.69; 
 21.8      (4) dividing the result in clause (3) by the sum of the 
 21.9   resident pupil units in average daily membership, excluding 
 21.10  section 126C.05, subdivision 13, plus the tribal contract 
 21.11  compensation revenue pupil units; and 
 21.12     (5) multiplying the sum of the resident pupil units, 
 21.13  including section 126C.05, subdivision 13, in average daily 
 21.14  membership plus the tribal contract compensation revenue pupil 
 21.15  units by the lesser of $1,500 or the result in clause (4). 
 21.16     Sec. 36.  Minnesota Statutes 1998, section 124D.895, is 
 21.17  amended to read: 
 21.18     124D.895 [PARENTAL INVOLVEMENT PROGRAMS.] 
 21.19     Subdivision 1.  [PROGRAM GOALS.] The department, in 
 21.20  consultation with the state curriculum advisory committee, must 
 21.21  develop guidelines and model plans for parental involvement 
 21.22  programs that will: 
 21.23     (1) engage the interests and talents of parents or 
 21.24  guardians in recognizing and meeting the emotional, 
 21.25  intellectual, and physical needs of their school-age children; 
 21.26     (2) promote healthy self-concepts among parents or 
 21.27  guardians and other family members; 
 21.28     (3) offer parents or guardians a chance to share and learn 
 21.29  about educational skills, techniques, and ideas; 
 21.30     (4) provide creative learning experiences for parents or 
 21.31  guardians and their school-age children, including involvement 
 21.32  from parents or guardians of color; 
 21.33     (5) encourage parents to actively participate in their 
 21.34  district's curriculum advisory committee under section 
 21.35  126.666 120B.11 in order to assist the school board in improving 
 21.36  children's education programs; and 
 22.1      (6) encourage parents to help in promoting school 
 22.2   desegregation/integration. 
 22.3      Subd. 2.  [PLAN CONTENTS.] Model plans for a parental 
 22.4   involvement program must include at least the following: 
 22.5      (1) program goals; 
 22.6      (2) means for achieving program goals; 
 22.7      (3) methods for informing parents or guardians, in a timely 
 22.8   way, about the program; 
 22.9      (4) strategies for ensuring the full participation of 
 22.10  parents or guardians, including those parents or guardians who 
 22.11  lack literacy skills or whose native language is not English, 
 22.12  including involvement from parents or guardians of color; 
 22.13     (5) procedures for coordinating the program with 
 22.14  kindergarten through grade 12 curriculum, with parental 
 22.15  involvement programs currently available in the community, with 
 22.16  the PER process under sections 126.661 120B.10 to 
 22.17  126.67 120B.11, and with other education facilities located in 
 22.18  the community; 
 22.19     (6) strategies for training teachers and other school staff 
 22.20  to work effectively with parents and guardians; 
 22.21     (7) procedures for parents or guardians and educators to 
 22.22  evaluate and report progress toward program goals; and 
 22.23     (8) a mechanism for convening a local community advisory 
 22.24  committee composed primarily of parents or guardians to advise a 
 22.25  district on implementing a parental involvement program. 
 22.26     Subd. 3.  [PLAN ACTIVITIES.] Activities contained in the 
 22.27  model plans must include: 
 22.28     (1) educational opportunities for families that enhance 
 22.29  children's learning development; 
 22.30     (2) educational programs for parents or guardians on 
 22.31  families' educational responsibilities and resources; 
 22.32     (3) the hiring, training, and use of parental involvement 
 22.33  liaison workers to coordinate family involvement activities and 
 22.34  to foster communication among families, educators, and students; 
 22.35     (4) curriculum materials and assistance in implementing 
 22.36  home and community-based learning activities that reinforce and 
 23.1   extend classroom instruction and student motivation; 
 23.2      (5) technical assistance, including training to design and 
 23.3   carry out family involvement programs; 
 23.4      (6) parent resource centers; 
 23.5      (7) parent training programs and reasonable and necessary 
 23.6   expenditures associated with parents' attendance at training 
 23.7   sessions; 
 23.8      (8) reports to parents on children's progress; 
 23.9      (9) use of parents as classroom volunteers, or as 
 23.10  volunteers in before and after school programs for school-age 
 23.11  children, tutors, and aides; 
 23.12     (10) soliciting parents' suggestions in planning, 
 23.13  developing, and implementing school programs; 
 23.14     (11) educational programs and opportunities for parents or 
 23.15  guardians that are multicultural, gender fair, and disability 
 23.16  sensitive; 
 23.17     (12) involvement in a district's curriculum advisory 
 23.18  committee or a school building team under section 126.666 
 23.19  120B.11; and 
 23.20     (13) opportunities for parent involvement in developing, 
 23.21  implementing, or evaluating school and district 
 23.22  desegregation/integration plans. 
 23.23     Sec. 37.  Minnesota Statutes 1998, section 124D.896, is 
 23.24  amended to read: 
 23.25     124D.896 [DESEGREGATION/INTEGRATION AND INCLUSIVE EDUCATION 
 23.26  RULES.] 
 23.27     (a) By January 10, 1999, the commissioner shall make 
 23.28  propose rules relating to desegregation/integration and 
 23.29  inclusive education. 
 23.30     (b) In adopting a rule related to school 
 23.31  desegregation/integration, the commissioner shall address the 
 23.32  need for equal educational opportunities for all students and 
 23.33  racial balance as defined by the commissioner. 
 23.34     Sec. 38.  Minnesota Statutes 1998, section 125A.62, 
 23.35  subdivision 1, is amended to read: 
 23.36     Subdivision 1.  [GOVERNANCE.] The board of the 
 24.1   Faribault academy academies shall govern the state academies for 
 24.2   the deaf and the state academy for the blind.  The board must 
 24.3   promote academic standards based on high expectation and an 
 24.4   assessment system to measure academic performance toward the 
 24.5   achievement of those standards.  The board must focus on the 
 24.6   academies' needs as a whole and not prefer one school over the 
 24.7   other.  The board of the Faribault academies shall consist of 
 24.8   seven persons.  The members of the board shall be appointed by 
 24.9   the governor with the advice and consent of the senate.  Three 
 24.10  members must be from the seven-county metropolitan area, three 
 24.11  members must be from greater Minnesota, and one member may be 
 24.12  appointed at-large.  The board must be composed of: 
 24.13     (1) one superintendent of an independent school district; 
 24.14     (2) one special education director; 
 24.15     (3) the commissioner of children, families, and learning or 
 24.16  the commissioner's designee; 
 24.17     (4) one member of the blind community; 
 24.18     (5) one member of the deaf community; and 
 24.19     (6) two members of the general public with business or 
 24.20  financial expertise. 
 24.21     Sec. 39.  Minnesota Statutes 1998, section 125A.77, 
 24.22  subdivision 1, is amended to read: 
 24.23     Subdivision 1.  [LEVY EQUALIZATION REVENUE.] For fiscal 
 24.24  year 1999, special education levy equalization revenue for a 
 24.25  school district, excluding an intermediate school district, 
 24.26  equals the sum of the following amounts: 
 24.27     (1) the levy percentage factor for that year times the 
 24.28  district's special education revenue under section 125A.76; plus 
 24.29     (2) the levy percentage factor for that year times the 
 24.30  district's special education excess cost revenue under section 
 24.31  124.323 125A.79; plus 
 24.32     (3) the levy percentage factor for that year times the 
 24.33  district's school-to-work program for children with a disability 
 24.34  revenue under section 124D.454. 
 24.35     Sec. 40.  Minnesota Statutes 1998, section 125A.79, 
 24.36  subdivision 1, is amended to read: 
 25.1      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 25.2   section, the definitions in this subdivision apply. 
 25.3      (a) "Unreimbursed special education cost" means the sum of 
 25.4   the following: 
 25.5      (1) expenditures for teachers' salaries, contracted 
 25.6   services, supplies, equipment, and transportation services 
 25.7   eligible for revenue under section 125A.76; plus 
 25.8      (2) expenditures for tuition bills received under sections 
 25.9   125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
 25.10  under sections section 125A.76, subdivision 2, and 124.3202, 
 25.11  subdivision 1; minus 
 25.12     (3) revenue for teachers' salaries, contracted services, 
 25.13  supplies, and equipment under sections 124.3202 and section 
 25.14  124A.76; minus 
 25.15     (4) tuition receipts under sections 125A.03 to 125A.24 and 
 25.16  125A.65 for services eligible for revenue under sections 
 25.17  124.3202, subdivision 1, and 124A.76 section 125A.76, 
 25.18  subdivision 2. 
 25.19     (b) "General revenue" means for fiscal year 1996, the sum 
 25.20  of the general education revenue according to section 126C.10, 
 25.21  subdivision 1, as adjusted according to section 127A.47, 
 25.22  subdivision 7, plus the total referendum revenue according to 
 25.23  section 126C.17, subdivision 4.  For fiscal years 1997 and 
 25.24  later, "general revenue" means the sum of the general education 
 25.25  revenue according to section 126C.10, subdivision 1, as adjusted 
 25.26  according to section 127A.47, subdivision 7, plus the total 
 25.27  referendum revenue minus transportation sparsity revenue minus 
 25.28  total operating capital revenue. 
 25.29     Sec. 41.  Minnesota Statutes 1998, section 126C.05, 
 25.30  subdivision 4, is amended to read: 
 25.31     Subd. 4.  [AFDC PUPIL COUNTS.] AFDC pupil counts and 
 25.32  average daily membership for subdivisions 1b and subdivision 3 
 25.33  shall be determined according to this subdivision: 
 25.34     (a) For districts where the number of pupils from families 
 25.35  receiving aid to families with dependent children has increased 
 25.36  over the preceding year for each of the two previous years, the 
 26.1   number of pupils enrolled in the district from families 
 26.2   receiving aid to families with dependent children shall be those 
 26.3   counted on October 1 of the previous school year.  The average 
 26.4   daily membership used shall be from the previous school year. 
 26.5      (b) For districts that do not meet the requirement of 
 26.6   paragraph (a), the number of pupils enrolled in the district 
 26.7   from families receiving aid to families with dependent children 
 26.8   shall be the average number of pupils on October 1 of the second 
 26.9   previous school year and October 1 of the previous school year.  
 26.10  The average daily membership used shall be the average number 
 26.11  enrolled in the previous school year and the second previous 
 26.12  school year. 
 26.13     (c) Notwithstanding paragraphs (a) and (b), for charter 
 26.14  schools in the first three years of operation, the number of 
 26.15  pupils enrolled from families receiving AFDC shall be those 
 26.16  counted on October 1 of the current school year.  The average 
 26.17  daily membership used shall be from the current school year.  
 26.18     Sec. 42.  Minnesota Statutes 1998, section 126C.05, 
 26.19  subdivision 5, is amended to read: 
 26.20     Subd. 5.  [ADJUSTED PUPIL UNITS.] Adjusted pupil units for 
 26.21  a district means the sum of: 
 26.22     (1) the number of resident pupil units, according to 
 26.23  subdivision 1g 6, plus 
 26.24     (2) shared time pupil units, according to section 126C.01, 
 26.25  subdivision 6, plus 
 26.26     (3) pupil units according to subdivision 1 for pupils 
 26.27  attending the district for which general education aid 
 26.28  adjustments are made according to section 127A.47, subdivision 
 26.29  7; minus 
 26.30     (4) pupil units according to subdivision 1 for resident 
 26.31  pupils attending other districts for which general education aid 
 26.32  adjustments are made according to section 127A.47, subdivision 7.
 26.33     Sec. 43.  Minnesota Statutes 1998, section 126C.10, 
 26.34  subdivision 9, is amended to read: 
 26.35     Subd. 9.  [SUPPLEMENTAL REVENUE.] (a) A district's 
 26.36  supplemental revenue allowance for fiscal year 1994 and later 
 27.1   fiscal years equals the district's supplemental revenue for 
 27.2   fiscal year 1993 divided by the district's 1992-1993 resident 
 27.3   pupil units. 
 27.4      (b) A district's supplemental revenue allowance is reduced 
 27.5   for fiscal year 1995 and later according to subdivision 12. 
 27.6      (c) A district's supplemental revenue equals the 
 27.7   supplemental revenue allowance, if any, times its resident pupil 
 27.8   units for that year.  
 27.9      (d) A district may cancel its supplemental revenue by 
 27.10  notifying the commissioner of education prior to June 30, 1994.  
 27.11  A district that is reorganizing under section 122A.35 123A.35, 
 27.12  123A.46, or 123A.48 may cancel its supplemental revenue by 
 27.13  notifying the commissioner of children, families, and learning 
 27.14  before July 1 of the year of the reorganization.  If a district 
 27.15  cancels its supplemental revenue according to this paragraph, 
 27.16  its supplemental revenue allowance for fiscal year 1993 for 
 27.17  purposes of subdivision 12 and section 124A.03 126C.17, 
 27.18  subdivision 3b 12, equals zero. 
 27.19     Sec. 44.  Minnesota Statutes 1998, section 126C.14, is 
 27.20  amended to read: 
 27.21     126C.14 [GENERAL EDUCATION LEVY EQUITY.] 
 27.22     If a district's general education levy is determined 
 27.23  according to section 126C.13, subdivision 3, an amount must be 
 27.24  deducted from state aid authorized in this chapter and chapters 
 27.25  120B, 122A, 123A, 123B, 124B, 124D, 125A, and 127A, receivable 
 27.26  for the same school year, and from other state payments 
 27.27  receivable for the same school year authorized in chapter 273.  
 27.28  The aid in section 124D.111 must not be reduced. 
 27.29     The amount of the deduction equals the difference between: 
 27.30     (1) the general education tax rate, according to section 
 27.31  126C.13, times the district's adjusted net tax capacity used to 
 27.32  determine the general education aid for the same school year; 
 27.33  and 
 27.34     (2) the district's general education revenue, excluding 
 27.35  transition revenue and supplemental revenue, for the same school 
 27.36  year, according to section 126C.10. 
 28.1      Sec. 45.  Minnesota Statutes 1998, section 126C.15, 
 28.2   subdivision 3, is amended to read: 
 28.3      Subd. 3.  [RECOMMENDATION.] A school site decision-making 
 28.4   team, as defined in section 123B.04, subdivision 3 2, paragraph 
 28.5   (a), or the instruction and curriculum advisory committee under 
 28.6   section 120B.11, if the school has no school site decision team, 
 28.7   shall recommend how the revenue will be used to carry out the 
 28.8   purpose of this section. 
 28.9      Sec. 46.  Minnesota Statutes 1998, section 126C.16, 
 28.10  subdivision 1, is amended to read: 
 28.11     Subdivision 1.  [REVENUE CONVERSION.] Except as provided 
 28.12  under subdivision 3, the referendum authority under section 
 28.13  126C.17 and the levy authority under section 124.912, 
 28.14  subdivisions 2 and 3, of a district must be converted by the 
 28.15  department according to this section. 
 28.16     Sec. 47.  Minnesota Statutes 1998, section 126C.16, 
 28.17  subdivision 2, is amended to read: 
 28.18     Subd. 2.  [RATE ADJUSTMENT.] The department must adjust a 
 28.19  district's referendum authority for a referendum approved before 
 28.20  July 1, 1991, excluding authority based on a dollar amount, and 
 28.21  the levy authority under section 124.912, subdivisions 2 and 3, 
 28.22  by multiplying the sum of the rates authorized by a district 
 28.23  under section 126C.17 and the rates in section 124.912, 
 28.24  subdivisions 2 and 3, by the ratio determined under subdivision 
 28.25  2 for the assessment year for which the revenue is 
 28.26  attributable.  The adjusted rates for assessment year 1993 apply 
 28.27  to later years for which the revenue is authorized. 
 28.28     Sec. 48.  Minnesota Statutes 1998, section 126C.22, 
 28.29  subdivision 4, is amended to read: 
 28.30     Subd. 4.  [REVENUE USES.] (a) A district must place its 
 28.31  district cooperation revenue in a reserved account and may only 
 28.32  use the revenue to purchase goods and services from entities 
 28.33  formed for cooperative purposes or to otherwise provide 
 28.34  educational services in a cooperative manner. 
 28.35     (b) A district that was a member of an intermediate school 
 28.36  district organized pursuant to chapter 136D on July 1, 1996, 
 29.1   must place its district cooperation revenue in a reserved 
 29.2   account and must allocate a portion of the reserved revenue for 
 29.3   instructional services from entities formed for cooperative 
 29.4   services for special education programs and secondary vocational 
 29.5   programs.  The allocated amount is equal to the levy made 
 29.6   according to Minnesota Statutes 1993 Supplement, section 
 29.7   124.2727, subdivision 6, for taxes payable in 1994 divided by 
 29.8   the resident pupil units in the intermediate school district for 
 29.9   fiscal year 1995 times the number of resident pupil units in the 
 29.10  school district in 1995.  The district must use 5/11 of the 
 29.11  revenue for special education and 6/11 of the revenue for 
 29.12  secondary vocational education.  The district must demonstrate 
 29.13  that the revenue is being used to provide the full range of 
 29.14  special education and secondary vocational programs and services 
 29.15  available to each child served by the intermediate.  The 
 29.16  secondary vocational programs and service must meet the 
 29.17  requirements established in an articulation agreement developed 
 29.18  between the state board of education and the board of trustees 
 29.19  of the Minnesota state colleges and universities. 
 29.20     (c) A district that was not a member of an intermediate 
 29.21  district organized under chapter 136D on July 1, 1994, must 
 29.22  spend at least $9 per pupil unit of its district cooperation 
 29.23  revenue on secondary vocational programs. 
 29.24     Sec. 49.  Minnesota Statutes 1998, section 126C.41, 
 29.25  subdivision 1, is amended to read: 
 29.26     Subdivision 1.  [HEALTH INSURANCE.] (a) A district may levy 
 29.27  the amount necessary to make employer contributions for 
 29.28  insurance for retired employees under this subdivision.  
 29.29     (b) The school board of a joint vocational technical 
 29.30  district formed under the provisions formerly codified as 
 29.31  sections 136C.60 to 136C.69 and the school board of a school 
 29.32  district may provide employer-paid hospital, medical, and dental 
 29.33  benefits to a person who: 
 29.34     (1) is eligible for employer-paid insurance under 
 29.35  collective bargaining agreements or personnel plans in effect on 
 29.36  June 30, 1992; 
 30.1      (2) has at least 25 years of service credit in the public 
 30.2   pension plan of which the person is a member on the day before 
 30.3   retirement or, in the case of a teacher, has a total of at least 
 30.4   25 years of service credit in the teachers retirement 
 30.5   association, a first-class city teacher retirement fund, or any 
 30.6   combination of these; 
 30.7      (3) upon retirement is immediately eligible for a 
 30.8   retirement annuity; 
 30.9      (4) is at least 55 and not yet 65 years of age; and 
 30.10     (5) retires on or after May 15, 1992, and before July 21, 
 30.11  1992. 
 30.12     A school board paying insurance under this subdivision may 
 30.13  not exclude any eligible employees. 
 30.14     (c) An employee who is eligible both for the health 
 30.15  insurance benefit under this subdivision and for an early 
 30.16  retirement incentive under a collective bargaining agreement or 
 30.17  personnel plan established by the employer must select either 
 30.18  the early retirement incentive provided under the collective 
 30.19  bargaining agreement personnel plan or the incentive provided 
 30.20  under this subdivision, but may not receive both.  For purposes 
 30.21  of this subdivision, a person retires when the person terminates 
 30.22  active employment and applies for retirement benefits.  The 
 30.23  retired employee is eligible for single and dependent coverages 
 30.24  and employer payments to which the person was entitled 
 30.25  immediately before retirement, subject to any changes in 
 30.26  coverage and employer and employee payments through collective 
 30.27  bargaining or personnel plans, for employees in positions 
 30.28  equivalent to the position from which the employee retired.  The 
 30.29  retired employee is not eligible for employer-paid life 
 30.30  insurance.  Eligibility ceases when the retired employee attains 
 30.31  the age of 65, or when the employee chooses not to receive the 
 30.32  retirement benefits for which the employee has applied, or when 
 30.33  the employee is eligible for employer-paid health insurance from 
 30.34  a new employer.  Coverages must be coordinated with relevant 
 30.35  health insurance benefits provided through the federally 
 30.36  sponsored Medicare program.  
 31.1      (d) Unilateral implementation of this section by a public 
 31.2   employer is not an unfair labor practice for purposes of chapter 
 31.3   179A.  The authority provided in this subdivision for an 
 31.4   employer to pay health insurance costs for certain retired 
 31.5   employees is not subject to the limits in section 179A.20, 
 31.6   subdivision 2a. 
 31.7      (e) If a school district levies according to this 
 31.8   subdivision, it may not also levy according to section 123A.73, 
 31.9   subdivision 12, for eligible employees. 
 31.10     Sec. 50.  Minnesota Statutes 1998, section 126C.44, is 
 31.11  amended to read: 
 31.12     126C.44 [CRIME-RELATED COSTS LEVY.] 
 31.13     For taxes levied in 1991 and subsequent years, payable in 
 31.14  1992 and subsequent years, each district may make a levy on all 
 31.15  taxable property located within the district for the purposes 
 31.16  specified in this subdivision.  The maximum amount which may be 
 31.17  levied for all costs under this subdivision shall be equal to 
 31.18  $1.50 multiplied by the population of the school district.  For 
 31.19  purposes of this subdivision, "population" of the school 
 31.20  district means the same as contained in section 275.14.  The 
 31.21  proceeds of the levy must be used for reimbursing the cities and 
 31.22  counties who contract with the district for the following 
 31.23  purposes:  (1) to pay the costs incurred for the salaries, 
 31.24  benefits, and transportation costs of peace officers and 
 31.25  sheriffs for liaison services in the district's middle and 
 31.26  secondary schools; (2) to pay the costs for a drug abuse 
 31.27  prevention program as defined in Minnesota Statutes 1991 
 31.28  Supplement, section 609.101, subdivision 3, paragraph (f) (e), 
 31.29  in the elementary schools; or (3) to pay the costs for a gang 
 31.30  resistance education training curriculum in the middle schools.  
 31.31  The district must initially attempt to contract for these 
 31.32  services with the police department of each city or the 
 31.33  sheriff's department of the county within the district 
 31.34  containing the school receiving the services.  If a local police 
 31.35  department or a county sheriff's department does not wish to 
 31.36  provide the necessary services, the district may contract for 
 32.1   these services with any other police or sheriff's department 
 32.2   located entirely or partially within the school district's 
 32.3   boundaries.  The levy authorized under this subdivision is not 
 32.4   included in determining the school district's levy limitations. 
 32.5      Sec. 51.  Minnesota Statutes 1998, section 126C.48, 
 32.6   subdivision 2, is amended to read: 
 32.7      Subd. 2.  [NOTICE TO COMMISSIONER; FORMS.] By October 7 of 
 32.8   each year each district must notify the commissioner of the 
 32.9   proposed levies in compliance with the levy limitations of this 
 32.10  chapter and chapters 120B, 122A, 123A, 123B, 124B, 124D, 125A, 
 32.11  127A, and 136D.  By January 15 of each year each district must 
 32.12  notify the commissioner of the final levies certified.  The 
 32.13  commissioner shall prescribe the form of these notifications and 
 32.14  may request any additional information necessary to compute 
 32.15  certified levy amounts. 
 32.16     Sec. 52.  Minnesota Statutes 1998, section 126C.48, 
 32.17  subdivision 5, is amended to read: 
 32.18     Subd. 5.  [ESTIMATES.] The computation of levy limitations 
 32.19  pursuant to this chapter and chapters 120B, 122A, 123A, 
 32.20  123B, 124B, 124D, 125A, 127A, 136C, and 136D shall be based on 
 32.21  estimates where necessary.  If as a result of using estimates 
 32.22  for these computations the amount of any levy is different from 
 32.23  the amount which could actually have been levied if actual data 
 32.24  had been available, levy limitations in the first year when the 
 32.25  actual data is known shall be adjusted to reflect for this 
 32.26  difference.  The amount of any adjustment to levy limitations 
 32.27  pursuant to this subdivision shall be recognized as revenue in 
 32.28  the school year when the levy for which the levy limitation is 
 32.29  so adjusted is recognized as revenue. 
 32.30     Sec. 53.  Minnesota Statutes 1998, section 127A.41, 
 32.31  subdivision 1, is amended to read: 
 32.32     Subdivision 1.  [COMMISSIONER DUTIES.] The commissioner 
 32.33  shall supervise distribution of school aids and grants in 
 32.34  accordance with law.  It The commissioner may make rules 
 32.35  consistent with law for the distribution to enable districts to 
 32.36  perform efficiently the services required by law and further 
 33.1   education in the state, including reasonable requirements for 
 33.2   the reports and accounts to it as will assure accurate and 
 33.3   lawful apportionment of aids.  State and federal aids and 
 33.4   discretionary or entitlement grants distributed by the 
 33.5   commissioner shall not be subject to the contract approval 
 33.6   procedures of the commissioner of administration or to chapter 
 33.7   16A, 16B, or 16C.  The commissioner shall adopt internal 
 33.8   procedures for administration and monitoring of aids and grants. 
 33.9      Sec. 54.  Minnesota Statutes 1998, section 127A.45, 
 33.10  subdivision 13, is amended to read: 
 33.11     Subd. 13.  [AID PAYMENT PERCENTAGE.] Except as provided in 
 33.12  subdivisions 11, 12, and 14, each fiscal year, all education 
 33.13  aids and credits in this chapter and chapters 120A, 120B, 121A, 
 33.14  122A, 123A, 123B, 124B, 124D, 125A, 125B, 126C, 134, and section 
 33.15  273.1392, shall be paid at 90 percent of the estimated 
 33.16  entitlement during the fiscal year of the entitlement.  The 
 33.17  final adjustment payment, according to subdivision 9, must be 
 33.18  the amount of the actual entitlement, after adjustment for 
 33.19  actual data, minus the payments made during the fiscal year of 
 33.20  the entitlement. 
 33.21     Sec. 55.  Minnesota Statutes 1998, section 127A.49, 
 33.22  subdivision 2, is amended to read: 
 33.23     Subd. 2.  [ABATEMENTS.] Whenever by virtue of chapter 278, 
 33.24  sections 270.07, 375.192, or otherwise, the net tax capacity of 
 33.25  any district for any taxable year is changed after the taxes for 
 33.26  that year have been spread by the county auditor and the local 
 33.27  tax rate as determined by the county auditor based upon the 
 33.28  original net tax capacity is applied upon the changed net tax 
 33.29  capacities, the county auditor shall, prior to February 1 of 
 33.30  each year, certify to the commissioner of children, families, 
 33.31  and learning the amount of any resulting net revenue loss that 
 33.32  accrued to the district during the preceding year.  Each year, 
 33.33  the commissioner shall pay an abatement adjustment to the 
 33.34  district in an amount calculated according to the provisions of 
 33.35  this subdivision.  This amount shall be deducted from the amount 
 33.36  of the levy authorized by section 126C.46.  The amount of the 
 34.1   abatement adjustment must be the product of:  
 34.2      (1) the net revenue loss as certified by the county 
 34.3   auditor, times 
 34.4      (2) the ratio of:  
 34.5      (i) the sum of the amounts of the district's certified levy 
 34.6   in the preceding year according to the following:  
 34.7      (A) section 126C.13 if the district received general 
 34.8   education aid according to that section for the second preceding 
 34.9   year; 
 34.10     (B) section 124.226, subdivisions 1 and 4, if the district 
 34.11  received transportation aid according to section 123B.92 for the 
 34.12  second preceding year; 
 34.13     (C) section 124.243, if the district received capital 
 34.14  expenditure facilities aid according to that section for the 
 34.15  second preceding year; 
 34.16     (D) section 124.244, if the district received capital 
 34.17  expenditure equipment aid according to that section for the 
 34.18  second preceding year; 
 34.19     (E) section 123B.57, if the district received health and 
 34.20  safety aid according to that section for the second preceding 
 34.21  year; 
 34.22     (F) (C) sections 124D.20, 124D.21, and 124D.56, if the 
 34.23  district received aid for community education programs according 
 34.24  to any of those sections for the second preceding year; 
 34.25     (G) (D) section 124D.135, subdivision 3, if the district 
 34.26  received early childhood family education aid according to 
 34.27  section 124D.135 for the second preceding year; and 
 34.28     (H) section 125A.77, subdivision 3, if the district 
 34.29  received special education levy equalization aid according to 
 34.30  that section for the second preceding year; 
 34.31     (I) (E) section 126C.17, subdivision 6, if the district 
 34.32  received referendum equalization aid according to that section 
 34.33  for the second preceding year; and 
 34.34     (J) section 124A.22, subdivision 4a, if the district 
 34.35  received training and experience aid according to that section 
 34.36  for the second preceding year; to 
 35.1      (ii) the total amount of the district's certified levy in 
 35.2   the preceding October, plus or minus auditor's adjustments. 
 35.3      Sec. 56.  Minnesota Statutes 1998, section 127A.49, 
 35.4   subdivision 3, is amended to read: 
 35.5      Subd. 3.  [EXCESS TAX INCREMENT.] (a) If a return of excess 
 35.6   tax increment is made to a district pursuant to section 469.176, 
 35.7   subdivision 2, or upon decertification of a tax increment 
 35.8   district, the school district's aid and levy limitations must be 
 35.9   adjusted for the fiscal year in which the excess tax increment 
 35.10  is paid under the provisions of this subdivision. 
 35.11     (b) An amount must be subtracted from the district's aid 
 35.12  for the current fiscal year equal to the product of: 
 35.13     (1) the amount of the payment of excess tax increment to 
 35.14  the district, times 
 35.15     (2) the ratio of: 
 35.16     (i) the sum of the amounts of the district's certified levy 
 35.17  for the fiscal year in which the excess tax increment is paid 
 35.18  according to the following: 
 35.19     (A) section 126C.13, if the district received general 
 35.20  education aid according to that section for the second preceding 
 35.21  year; 
 35.22     (B) section 124.226, subdivisions 1 and 4, if the district 
 35.23  received transportation aid according to section 123B.92 for the 
 35.24  second preceding year; 
 35.25     (C) section 124.243, if the district received capital 
 35.26  expenditure facilities aid according to that section for the 
 35.27  second preceding year; 
 35.28     (D) section 124.244, if the district received capital 
 35.29  expenditure equipment aid according to that section for the 
 35.30  second preceding year; 
 35.31     (E) section 123B.57, if the district received health and 
 35.32  safety aid according to that section for the second preceding 
 35.33  year; 
 35.34     (F) (C) sections 124D.20, 124D.21, and 124D.56, if the 
 35.35  district received aid for community education programs according 
 35.36  to any of those sections for the second preceding year; 
 36.1      (G) (D) section 124D.135, subdivision 3, if the district 
 36.2   received early childhood family education aid according to 
 36.3   section 124D.135 for the second preceding year; and 
 36.4      (H) section 125A.77, subdivision 3, if the district 
 36.5   received special education levy equalization aid according to 
 36.6   that section for the second preceding year; 
 36.7      (I) (E) section 126C.17, subdivision 6, if the district 
 36.8   received referendum equalization aid according to that section 
 36.9   for the second preceding year; and 
 36.10     (J) section 124A.22, subdivision 4a, if the district 
 36.11  received training and experience aid according to that section 
 36.12  for the second preceding year; to 
 36.13     (ii) the total amount of the district's certified levy for 
 36.14  the fiscal year, plus or minus auditor's adjustments. 
 36.15     (c) An amount must be subtracted from the school district's 
 36.16  levy limitation for the next levy certified equal to the 
 36.17  difference between: 
 36.18     (1) the amount of the distribution of excess increment; and 
 36.19     (2) the amount subtracted from aid pursuant to clause (a). 
 36.20     If the aid and levy reductions required by this subdivision 
 36.21  cannot be made to the aid for the fiscal year specified or to 
 36.22  the levy specified, the reductions must be made from aid for 
 36.23  subsequent fiscal years, and from subsequent levies.  The school 
 36.24  district must use the payment of excess tax increment to replace 
 36.25  the aid and levy revenue reduced under this subdivision. 
 36.26     (d) This subdivision applies only to the total amount of 
 36.27  excess increments received by a district for a calendar year 
 36.28  that exceeds $25,000. 
 36.29     Sec. 57.  Laws 1998, chapter 398, article 5, section 50, 
 36.30  subdivision 1, is amended to read: 
 36.31     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A task force on 
 36.32  prekindergarten through grade 12 education governance structure 
 36.33  is established to examine the transitional issues related to the 
 36.34  repeal of the state board of education under section 39, 
 36.35  paragraph (b) 56. 
 36.36     Sec. 58.  [REPEALERS WITHOUT EFFECT.] 
 37.1      Subdivision 1.  [EFFECT.] (a) The repeal of Minnesota 
 37.2   Statutes 1994, section 121.703, by Laws 1995, chapter 131, 
 37.3   section 3, subdivision 3, with an effective date of July 1, 
 37.4   1997, is without effect and Minnesota Statutes 1996, section 
 37.5   121.703, as amended by Laws 1997, First Special Session chapter 
 37.6   4, article 3, section 10, remains in effect after June 30, 1997. 
 37.7      (b) The repeal of Minnesota Statutes 1996, section 121.11, 
 37.8   subdivision 7d, by Laws 1998, chapter 398, article 6, section 
 37.9   38, paragraph (b), with an effective date of January 10, 1999, 
 37.10  is without effect and Minnesota Statutes 1996, section 121.11, 
 37.11  subdivision 7d, as amended by Laws 1998, chapter 397, article 4, 
 37.12  section 51, and chapter 398, article 5, section 7, remains in 
 37.13  effect after January 9, 1999.  Any rules adopted under section 
 37.14  121.11, subdivision 7d, prior to July 1, 1998, remain in effect 
 37.15  until otherwise provided by law or rule. 
 37.16     Subd. 2.  [REVISOR INSTRUCTION.] In the next and subsequent 
 37.17  editions of Minnesota Statutes, the revisor of statutes shall 
 37.18  renumber section 121.703 as 124D.385.  The revisor shall also 
 37.19  make necessary cross-reference changes consistent with the 
 37.20  renumbering. 
 37.21     Subd. 3.  [EFFECTIVE DATE.] Subdivision 1, paragraph (a), 
 37.22  is effective retroactive to July 1, 1997.  Subdivision 1, 
 37.23  paragraph (b), is effective retroactive to July 1, 1998. 
 37.24     Sec. 59.  [REPEALER.] 
 37.25     (a) Minnesota Statutes 1998, sections 123B.92, subdivision 
 37.26  10; 124D.128, subdivision 4; 124D.38, subdivision 10; and 
 37.27  124D.45, subdivision 3, are repealed. 
 37.28     (b) Laws 1997, chapter 192, section 19, is repealed. 
 37.29     (c) Laws 1995, First Special Session chapter 3, article 5, 
 37.30  section 9, is repealed. 
 37.31     Sec. 60.  [EFFECTIVE DATE.] 
 37.32     Section 49 is effective retroactive to July 1, 1995.  
 37.33  Section 37 is effective retroactive to January 1, 1999.