1.1                          A bill for an act 
  1.2             relating to education; prekindergarten through grade 
  1.3             12; providing for general education; transportation; 
  1.4             special programs; community education; facilities; 
  1.5             organization and cooperation; education excellence; 
  1.6             other education programs and financing; education 
  1.7             policy provisions; libraries; state agencies; 
  1.8             technology; conforming amendments; appropriating 
  1.9             money; amending Minnesota Statutes 1994, sections 
  1.10            120.06, subdivision 1; 120.08, subdivision 3; 120.17, 
  1.11            subdivision 9, and by adding a subdivision; 120.1701, 
  1.12            subdivision 10; 120.73, subdivision 1; 121.8355, 
  1.13            subdivision 1, and by adding a subdivision; 121.906; 
  1.14            121.914, subdivision 1; 121.915; 122.32, subdivision 
  1.15            1; 122.535, subdivision 6; 122.895, subdivision 2; 
  1.16            123.35, subdivision 19a, and by adding a subdivision; 
  1.17            123.351, subdivision 10; 123.3514, subdivision 9; 
  1.18            123.37, subdivision 1a; 123.38, subdivisions 2 and 2b; 
  1.19            123.39, subdivision 8b; 123.932, subdivisions 1b, 1c, 
  1.20            1e, and 11; 123.933, as amended; 123.935, subdivisions 
  1.21            2 and 7; 124.09; 124.17, subdivision 1e, and by adding 
  1.22            subdivisions; 124.195, subdivision 8; 124.239, 
  1.23            subdivision 4; 124.2711, subdivision 6; 124.2713, 
  1.24            subdivision 10; 124.273, by adding subdivisions; 
  1.25            124.276; 124.311, subdivisions 1, 2, 3, 4, 5, and 7; 
  1.26            124.573, subdivision 3; 124.86, subdivisions 1 and 2; 
  1.27            124.91, subdivision 1, and by adding a subdivision; 
  1.28            124.912, subdivision 6; 124.916, subdivision 4; 
  1.29            124.95, subdivision 1; 124A.02, subdivision 25; 
  1.30            124A.029, subdivision 4; 124A.03, subdivisions 2b, 3b, 
  1.31            and by adding a subdivision; 124A.0311, subdivision 3; 
  1.32            124A.035, subdivision 4; 124A.036, by adding a 
  1.33            subdivision; 124A.22, by adding a subdivision; 
  1.34            124A.28, subdivision 1; 124A.291; 124C.45, by adding a 
  1.35            subdivision; 125.05, subdivision 1a, and by adding a 
  1.36            subdivision; 125.09, subdivision 4; 125.1385, 
  1.37            subdivision 1; 125.185, subdivision 4; 125.60, 
  1.38            subdivision 2; 125.611, subdivision 1; 125.70; 
  1.39            125.701; 125.703; 125.704; 125.705, subdivision 1; 
  1.40            126.151, subdivision 2; 126.22, subdivision 1; 
  1.41            126.531, subdivision 3; 126.83; 128D.11, subdivisions 
  1.42            3, 5, 8, and 10; 134.34, by adding a subdivision; 
  1.43            136D.23, subdivision 1; 136D.83, subdivision 1; 
  1.44            144.4165; 169.4504, by adding a subdivision; 256.736, 
  1.45            subdivision 11; 466.01, subdivision 1; and 471.59, 
  1.46            subdivision 11; Minnesota Statutes 1995 Supplement, 
  2.1             sections 13.46, subdivision 2; 43A.316, subdivision 2; 
  2.2             65B.132; 115A.072, subdivision 1; 120.064, subdivision 
  2.3             9; 120.1045, subdivision 1, and by adding a 
  2.4             subdivision; 120.17, subdivisions 3a, 3b, and 6; 
  2.5             120.1701, subdivision 20; 120.181; 120.74, subdivision 
  2.6             1; 121.11, subdivision 7c; 121.15, subdivision 1; 
  2.7             121.904, subdivision 4c; 121.911, subdivision 5; 
  2.8             121.917, subdivision 4; 121.935, subdivision 1a; 
  2.9             123.3514, subdivisions 6 and 6b; 123.7991, subdivision 
  2.10            2; 124.155, subdivision 2; 124.17, subdivision 1; 
  2.11            124.195, subdivision 12; 124.223, subdivision 4; 
  2.12            124.225, subdivisions 8l, 14, 16, and 17; 124.227; 
  2.13            124.243, subdivision 2; 124.2445; 124.2455; 124.248, 
  2.14            subdivisions 1, 1a, 2, and 3; 124.273, subdivisions 1c 
  2.15            and 1d; 124.314, subdivision 2; 124.3201, subdivisions 
  2.16            1, 2, 3, 5, and by adding subdivisions; 124.3202; 
  2.17            124.323, subdivisions 1 and 2; 124.574, subdivisions 
  2.18            2f and 2g; 124.71, subdivision 2; 124.912, subdivision 
  2.19            1; 124.918, subdivision 2; 124.961; 124A.03, 
  2.20            subdivision 2; 124A.0311, subdivision 2; 124A.22, 
  2.21            subdivisions 2a, 10, and 13b; 124A.23, subdivision 4; 
  2.22            124C.74, subdivisions 2 and 3; 125.05, subdivision 1; 
  2.23            126.151, subdivision 1; 126.22, subdivisions 2, 3, 5, 
  2.24            and 8; 126.23; 126.70, subdivision 1; 128B.03, 
  2.25            subdivision 3a; 134.46; 169.01, subdivision 6; 
  2.26            237.065; 325G.203, subdivision 11; and 631.40, 
  2.27            subdivision 1a; Laws 1993, chapter 224, article 1, 
  2.28            section 34, subdivisions 2 and 3; article 12, sections 
  2.29            39, as amended; and 41, as amended; Laws 1995, First 
  2.30            Special Session chapter 3, article 1, sections 61; and 
  2.31            63, subdivision 2; article 2, section 53; article 3, 
  2.32            section 19, subdivisions 7 and 15; article 4, section 
  2.33            29, subdivision 10; article 5, section 20, 
  2.34            subdivisions 5, 6, and 7; article 6, section 17, 
  2.35            subdivisions 2, 4, and by adding subdivisions; article 
  2.36            7, section 5, subdivision 4; article 8, sections 25, 
  2.37            subdivisions 2 and 18; and 27; article 11, sections 
  2.38            21, subdivision 2; 22; and 23; article 12, sections 8, 
  2.39            subdivision 1; and 12, subdivision 7; article 14, 
  2.40            section 5; article 15, sections 25; and 26, 
  2.41            subdivisions 7, 8, and 10; proposing coding for new 
  2.42            law in Minnesota Statutes, chapters 120; 121; 123; 
  2.43            124; 124C; 125; 126; and 136D; repealing Minnesota 
  2.44            Statutes 1994, sections 121.11, subdivision 15; and 
  2.45            136D.75; Minnesota Statutes 1995 Supplement, sections 
  2.46            120.1045, subdivision 3; and 126A.02, subdivision 2; 
  2.47            Laws 1993, chapter 224, article 1, section 34, 
  2.48            subdivision 1; Minnesota Rules, parts 8700.7700; 
  2.49            8700.7710; 8750.9000; 8750.9100; 8750.9200; 8750.9300; 
  2.50            8750.9400; 8750.9500; 8750.9600; and 8750.9700. 
  2.51  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.52                             ARTICLE 1 
  2.53                         GENERAL EDUCATION 
  2.54     Section 1.  Minnesota Statutes 1995 Supplement, section 
  2.55  13.46, subdivision 2, is amended to read: 
  2.56     Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
  2.57  a statute specifically provides a different classification, data 
  2.58  on individuals collected, maintained, used, or disseminated by 
  2.59  the welfare system is private data on individuals, and shall not 
  2.60  be disclosed except:  
  3.1      (1) pursuant to section 13.05; 
  3.2      (2) pursuant to court order; 
  3.3      (3) pursuant to a statute specifically authorizing access 
  3.4   to the private data; 
  3.5      (4) to an agent of the welfare system, including a law 
  3.6   enforcement person, attorney, or investigator acting for it in 
  3.7   the investigation or prosecution of a criminal or civil 
  3.8   proceeding relating to the administration of a program; 
  3.9      (5) to personnel of the welfare system who require the data 
  3.10  to determine eligibility, amount of assistance, and the need to 
  3.11  provide services of additional programs to the individual; 
  3.12     (6) to administer federal funds or programs; 
  3.13     (7) between personnel of the welfare system working in the 
  3.14  same program; 
  3.15     (8) the amounts of cash public assistance and relief paid 
  3.16  to welfare recipients in this state, including their names, 
  3.17  social security numbers, income, addresses, and other data as 
  3.18  required, upon request by the department of revenue to 
  3.19  administer the property tax refund law, supplemental housing 
  3.20  allowance, early refund of refundable tax credits, and the 
  3.21  income tax.  "Refundable tax credits" means the dependent care 
  3.22  credit under section 290.067, the Minnesota working family 
  3.23  credit under section 290.0671, the property tax refund under 
  3.24  section 290A.04, and, if the required federal waiver or waivers 
  3.25  are granted, the federal earned income tax credit under section 
  3.26  32 of the Internal Revenue Code; 
  3.27     (9) to the Minnesota department of economic security for 
  3.28  the purpose of monitoring the eligibility of the data subject 
  3.29  for reemployment insurance, for any employment or training 
  3.30  program administered, supervised, or certified by that agency, 
  3.31  or for the purpose of administering any rehabilitation program, 
  3.32  whether alone or in conjunction with the welfare system, and to 
  3.33  verify receipt of energy assistance for the telephone assistance 
  3.34  plan; 
  3.35     (10) to appropriate parties in connection with an emergency 
  3.36  if knowledge of the information is necessary to protect the 
  4.1   health or safety of the individual or other individuals or 
  4.2   persons; 
  4.3      (11) data maintained by residential programs as defined in 
  4.4   section 245A.02 may be disclosed to the protection and advocacy 
  4.5   system established in this state pursuant to Part C of Public 
  4.6   Law Number 98-527 to protect the legal and human rights of 
  4.7   persons with mental retardation or other related conditions who 
  4.8   live in residential facilities for these persons if the 
  4.9   protection and advocacy system receives a complaint by or on 
  4.10  behalf of that person and the person does not have a legal 
  4.11  guardian or the state or a designee of the state is the legal 
  4.12  guardian of the person; 
  4.13     (12) to the county medical examiner or the county coroner 
  4.14  for identifying or locating relatives or friends of a deceased 
  4.15  person; 
  4.16     (13) data on a child support obligor who makes payments to 
  4.17  the public agency may be disclosed to the higher education 
  4.18  services office to the extent necessary to determine eligibility 
  4.19  under section 136A.121, subdivision 2, clause (5); 
  4.20     (14) participant social security numbers and names 
  4.21  collected by the telephone assistance program may be disclosed 
  4.22  to the department of revenue to conduct an electronic data match 
  4.23  with the property tax refund database to determine eligibility 
  4.24  under section 237.70, subdivision 4a; 
  4.25     (15) the current address of a recipient of aid to families 
  4.26  with dependent children may be disclosed to law enforcement 
  4.27  officers who provide the name and social security number of the 
  4.28  recipient and satisfactorily demonstrate that:  (i) the 
  4.29  recipient is a fugitive felon, including the grounds for this 
  4.30  determination; (ii) the location or apprehension of the felon is 
  4.31  within the law enforcement officer's official duties; and (iii) 
  4.32  the request is made in writing and in the proper exercise of 
  4.33  those duties; 
  4.34     (16) the current address of a recipient of general 
  4.35  assistance, work readiness, or general assistance medical care 
  4.36  may be disclosed to probation officers and corrections agents 
  5.1   who are supervising the recipient, and to law enforcement 
  5.2   officers who are investigating the recipient in connection with 
  5.3   a felony level offense; 
  5.4      (17) information obtained from food stamp applicant or 
  5.5   recipient households may be disclosed to local, state, or 
  5.6   federal law enforcement officials, upon their written request, 
  5.7   for the purpose of investigating an alleged violation of the 
  5.8   food stamp act, in accordance with Code of Federal Regulations, 
  5.9   title 7, section 272.1(c); 
  5.10     (18) data on a child support obligor who is in arrears may 
  5.11  be disclosed for purposes of publishing the data pursuant to 
  5.12  section 518.575; 
  5.13     (19) data on child support payments made by a child support 
  5.14  obligor may be disclosed to the obligee; or 
  5.15     (20) data in the work reporting system may be disclosed 
  5.16  under section 256.998, subdivision 7.; or 
  5.17     (21) to the Minnesota department of children, families, and 
  5.18  learning for the purpose of matching department of children, 
  5.19  families, and learning student records to public assistance 
  5.20  records to determine students eligible for free and reduced 
  5.21  price meals, meal supplements, and free milk pursuant to United 
  5.22  States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 
  5.23  and 1773; to produce accurate numbers of students receiving aid 
  5.24  to families with dependent children as required by section 
  5.25  124.175; and to allocate federal and state resources that are 
  5.26  distributed based on income of the student's family. 
  5.27     (b) Information on persons who have been treated for drug 
  5.28  or alcohol abuse may only be disclosed in accordance with the 
  5.29  requirements of Code of Federal Regulations, title 42, sections 
  5.30  2.1 to 2.67. 
  5.31     (c) Data provided to law enforcement agencies under 
  5.32  paragraph (a), clause (15), (16), or (17), or paragraph (b), are 
  5.33  investigative data and are confidential or protected nonpublic 
  5.34  while the investigation is active.  The data are private after 
  5.35  the investigation becomes inactive under section 13.82, 
  5.36  subdivision 5, paragraph (a) or (b). 
  6.1      (d) Mental health data shall be treated as provided in 
  6.2   subdivisions 7, 8, and 9, but is not subject to the access 
  6.3   provisions of subdivision 10, paragraph (b). 
  6.4      Sec. 2.  Minnesota Statutes 1994, section 121.906, is 
  6.5   amended to read: 
  6.6      121.906 [EXPENDITURES; REPORTING.] 
  6.7      Subdivision 1.  [RECOGNITION.] School district expenditures 
  6.8   shall be recognized and reported on the district books of 
  6.9   account in accordance with this section. 
  6.10     There shall be fiscal year-end recognition of expenditures 
  6.11  and the related offsetting liabilities recorded in each fund in 
  6.12  accordance with the uniform financial accounting and reporting 
  6.13  standards for Minnesota school districts.  Encumbrances 
  6.14  outstanding at the end of the fiscal year do not constitute 
  6.15  expenditures or liabilities.  
  6.16     Deviations from the principles set forth in this section 
  6.17  subdivision shall be evaluated and explained in footnotes to 
  6.18  audited financial statements. 
  6.19     Subd. 2.  [ACCOUNTING.] Expenditures for any legal purpose 
  6.20  of the school district not accounted for elsewhere shall be 
  6.21  accounted for in the general fund. 
  6.22     Sec. 3.  Minnesota Statutes 1995 Supplement, section 
  6.23  121.911, subdivision 5, is amended to read: 
  6.24     Subd. 5.  [DEFICIT FOR CAPITAL PROJECTS.] Upon approval by 
  6.25  the commissioner of children, families, and learning, a district 
  6.26  may incur a deficit in the capital expenditure fund reserve for 
  6.27  operating capital account for a period not to exceed three years 
  6.28  to provide money for capital projects.  A description of the 
  6.29  project and a financial plan to recover the deficit shall be 
  6.30  approved by the commissioner prior to the initiation of the 
  6.31  project.  
  6.32     Sec. 4.  Minnesota Statutes 1995 Supplement, section 
  6.33  121.917, subdivision 4, is amended to read: 
  6.34     Subd. 4.  (1) If the net negative undesignated 
  6.35  unappropriated operating fund balance in all the funds of a 
  6.36  school district, other than statutory operating debt pursuant to 
  7.1   section 121.914, capital expenditure, building construction, 
  7.2   debt service, trust and agency, and post-secondary vocational 
  7.3   technical education funds as defined in section 124A.02, 
  7.4   subdivision 25, calculated in accordance with the uniform 
  7.5   financial accounting and reporting standards for Minnesota 
  7.6   school districts, as of June 30 each year, is more than 2-1/2 
  7.7   percent of the year's expenditure amount, the district shall, 
  7.8   prior to September 15 January 31 of the next fiscal year, submit 
  7.9   a special operating plan to reduce the district's deficit 
  7.10  expenditures to the commissioner of children, families, and 
  7.11  learning for approval.  The commissioner may also require the 
  7.12  district to provide evidence that the district meets and will 
  7.13  continue to meet all of the curriculum requirements of the state 
  7.14  board. 
  7.15     Notwithstanding any other law to the contrary, a district 
  7.16  submitting a special operating plan to the commissioner under 
  7.17  this clause which is disapproved by the commissioner shall not 
  7.18  receive any aid pursuant to chapters 124 and 124A until a 
  7.19  special operating plan of the district is so approved. 
  7.20     (2) A district shall receive aids pending the approval of 
  7.21  its special operating plan under clause (1).  A district which 
  7.22  complies with its approved operating plan shall receive aids as 
  7.23  long as the district continues to comply with the approved 
  7.24  operating plan. 
  7.25     Sec. 5.  Minnesota Statutes 1994, section 124.09, is 
  7.26  amended to read: 
  7.27     124.09 [SCHOOL ENDOWMENT FUND, APPORTIONMENT.] 
  7.28     The school endowment fund shall be apportioned semiannually 
  7.29  by the commissioner, on the first Monday in March and October 
  7.30  September in each year, to districts whose schools have been in 
  7.31  session at least nine months.  The apportionment shall be in 
  7.32  proportion to the number of pupils in average daily membership 
  7.33  during the preceding year; provided, that apportionment shall 
  7.34  not be paid to a district for pupils for whom tuition is 
  7.35  received by the district. 
  7.36     Sec. 6.  Minnesota Statutes 1995 Supplement, section 
  8.1   124.155, subdivision 2, is amended to read: 
  8.2      Subd. 2.  [ADJUSTMENT TO AIDS.] (a) The amount specified in 
  8.3   subdivision 1 shall be used to adjust the following state aids 
  8.4   and credits in the order listed: 
  8.5      (1) general education aid authorized in sections 124A.23 
  8.6   and 124B.20; 
  8.7      (2) secondary vocational aid authorized in section 124.573; 
  8.8      (3) special education aid authorized in section sections 
  8.9   124.32, 124.3201, and 124.3202; 
  8.10     (4) secondary vocational aid for children with a disability 
  8.11  authorized in section 124.574; 
  8.12     (5) aid for pupils of limited English proficiency 
  8.13  authorized in section 124.273; 
  8.14     (6) transportation aid authorized in section 124.225; 
  8.15     (7) community education programs aid authorized in section 
  8.16  124.2713; 
  8.17     (8) adult education aid authorized in section 124.26; 
  8.18     (9) early childhood family education aid authorized in 
  8.19  section 124.2711; 
  8.20     (10) capital expenditure aid authorized in sections 
  8.21  124.243, 124.244, and 124.83; 
  8.22     (11) school district cooperation aid authorized in section 
  8.23  124.2727; 
  8.24     (12) assurance of mastery aid according to section 124.311; 
  8.25     (13) homestead and agricultural credit aid, disparity 
  8.26  credit and aid, and changes to credits for prior year 
  8.27  adjustments according to section 273.1398, subdivisions 2, 3, 4, 
  8.28  and 7; 
  8.29     (14) attached machinery aid authorized in section 273.138, 
  8.30  subdivision 3; 
  8.31     (15) alternative delivery aid authorized in section 
  8.32  124.322; 
  8.33     (16) special education equalization aid authorized in 
  8.34  section 124.321; 
  8.35     (17) special education excess cost aid authorized in 
  8.36  section 124.323; 
  9.1      (18) learning readiness aid authorized in section 124.2615; 
  9.2   and 
  9.3      (19) cooperation-combination aid authorized in section 
  9.4   124.2725; and 
  9.5      (20) district cooperation revenue aid authorized in section 
  9.6   124.2727. 
  9.7      (b) The commissioner of children, families, and learning 
  9.8   shall schedule the timing of the adjustments to state aids and 
  9.9   credits specified in subdivision 1, as close to the end of the 
  9.10  fiscal year as possible. 
  9.11     Sec. 7.  Minnesota Statutes 1994, section 124.17, 
  9.12  subdivision 1e, is amended to read: 
  9.13     Subd. 1e.  [AFDC PUPIL COUNTS.] AFDC pupil counts and 
  9.14  average daily membership for subdivisions 1b and 1d shall be 
  9.15  determined according to this subdivision: 
  9.16     (a) For districts where the number of pupils from families 
  9.17  receiving aid to families with dependent children has increased 
  9.18  over the preceding year for each of the two previous years, the 
  9.19  number of pupils enrolled in the district from families 
  9.20  receiving aid to families with dependent children shall be those 
  9.21  counted on October 1 of the previous school year.  The average 
  9.22  daily membership used shall be from the previous school year. 
  9.23     (b) For districts that do not meet the requirement of 
  9.24  paragraph (a), the number of pupils enrolled in the district 
  9.25  from families receiving aid to families with dependent children 
  9.26  shall be the average number of pupils on October 1 of the second 
  9.27  previous school year and October 1 of the previous school year.  
  9.28  The average daily membership used shall be the average number 
  9.29  enrolled in the previous school year and the second previous 
  9.30  school year. 
  9.31     (c) Notwithstanding paragraphs (a) and (b), for charter 
  9.32  schools in the first three years of operation, the number of 
  9.33  pupils enrolled from families receiving AFDC shall be those 
  9.34  counted on October 1 of the current school year.  The average 
  9.35  daily membership used shall be from the current school year.  
  9.36     Sec. 8.  Minnesota Statutes 1994, section 124.17, is 
 10.1   amended by adding a subdivision to read: 
 10.2      Subd. 4.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
 10.3   enrolled in a learning year program according to section 
 10.4   121.585, an area learning center according to sections 124C.45 
 10.5   and 124C.46, or an alternative program approved by the 
 10.6   commissioner, for more than 1,020 hours in a school year for a 
 10.7   secondary student and for more than 935 hours in a school year 
 10.8   for an elementary student, that pupil may be counted as more 
 10.9   than one pupil in average daily membership.  The amount in 
 10.10  excess of one pupil must be determined by the ratio of the 
 10.11  number of hours of instruction provided to that pupil in excess 
 10.12  of 1,020 hours to 1,020 for a secondary pupil and of 935 hours 
 10.13  to 935 for an elementary pupil.  Hours that occur after the 
 10.14  close of the instructional year in June shall be attributable to 
 10.15  the following fiscal year. 
 10.16     (b)(i) To receive general education revenue for a pupil in 
 10.17  an alternative program that has an independent study component, 
 10.18  a school district must meet the requirements in this paragraph.  
 10.19  The school district must develop with the pupil a continual 
 10.20  learning plan for the pupil.  A district must allow a minor 
 10.21  pupil's parent or guardian to participate in developing the 
 10.22  plan, if the parent or guardian wants to participate.  The plan 
 10.23  must identify the learning experiences and expected outcomes 
 10.24  needed for satisfactory credit for the year and for graduation.  
 10.25  The plan must be updated each year. 
 10.26     (ii) General education revenue for a pupil in an approved 
 10.27  alternative program without an independent study component must 
 10.28  be prorated for a pupil participating for less than a full year, 
 10.29  or its equivalent. 
 10.30     (iii) General education revenue for a pupil in an approved 
 10.31  alternative program that has an independent study component must 
 10.32  be paid for each hour of teacher contact time and each hour of 
 10.33  independent study time completed toward a credit necessary for 
 10.34  graduation.  Average daily membership for a pupil shall equal 
 10.35  the number of hours of teacher contact time and independent 
 10.36  study time divided by 1,020. 
 11.1      (iv) For an alternative program having an independent study 
 11.2   component, the commissioner shall require a description of the 
 11.3   courses in the program, the kinds of independent study involved, 
 11.4   the expected learning outcomes of the courses, and the means of 
 11.5   measuring student performance against the expected outcomes. 
 11.6      Sec. 9.  Minnesota Statutes 1994, section 124.195, 
 11.7   subdivision 8, is amended to read: 
 11.8      Subd. 8.  [PAYMENT PERCENTAGE FOR REIMBURSEMENT AIDS.] One 
 11.9   hundred percent of the aid for the last fiscal year must be paid 
 11.10  for the following aids: special education special pupil aid 
 11.11  according to section 124.32, subdivision 6; special education 
 11.12  summer school aid, according to section 124.32, subdivision 10, 
 11.13  for the previous fiscal year must be paid in the current year. 
 11.14     Sec. 10.  Minnesota Statutes 1995 Supplement, section 
 11.15  124.195, subdivision 12, is amended to read: 
 11.16     Subd. 12.  [AID ADJUSTMENT FOR TRA CONTRIBUTION RATE 
 11.17  CHANGE.] (a) The department of children, families, and learning 
 11.18  shall reduce general education aid or any other aid paid in a 
 11.19  fiscal year directly to school districts, intermediate school 
 11.20  districts, education districts, education cooperative service 
 11.21  units, special education cooperatives, secondary vocational 
 11.22  cooperatives, regional management information centers, or 
 11.23  another.  Any district or cooperative unit providing elementary 
 11.24  or secondary education services that is prohibited from 
 11.25  receiving direct state aids by section 124.193 or 124.32, 
 11.26  subdivision 12, is exempt from this reduction.  The reduction 
 11.27  shall equal the following percent of salaries paid in a fiscal 
 11.28  year by the entity to members of the teachers retirement 
 11.29  association established in chapter 354.  However, salaries paid 
 11.30  to members of the association who are employed by a technical 
 11.31  college shall be excluded from this calculation: 
 11.32     (1) in fiscal year 1991, 0.84 percent, 
 11.33     (2) in fiscal year 1992 and later years, the greater of 
 11.34     (i) zero, or 
 11.35     (ii) 4.48 percent less the additional employer contribution 
 11.36  rate established under section 354.42, subdivision 5.  
 12.1      (b) In fiscal year 1991, this reduction is estimated to 
 12.2   equal $14,260,000. 
 12.3      Sec. 11.  [124.2613] [FIRST-GRADE PREPAREDNESS PROGRAM.] 
 12.4      Subdivision 1.  [PURPOSE.] The purposes of the first-grade 
 12.5   preparedness program are to ensure that every child has the 
 12.6   opportunity before first grade to develop the skills and 
 12.7   abilities necessary to read and succeed in school and to reduce 
 12.8   the underlying causes that create a need for compensatory 
 12.9   revenue. 
 12.10     Subd. 2.  [QUALIFYING DISTRICT.] A school district may 
 12.11  receive first-grade preparedness revenue for qualifying school 
 12.12  sites if, consistent with subdivision 5, the school board 
 12.13  approves a resolution requiring the district to provide services 
 12.14  to all children located in a qualifying school site attendance 
 12.15  area. 
 12.16     Subd. 3.  [QUALIFYING SCHOOL SITE.] (a) The commissioner 
 12.17  shall rank all school sites with kindergarten programs that do 
 12.18  not exclusively serve students under section 120.17.  The 
 12.19  ranking must be from highest to lowest based on the site's free 
 12.20  and reduced lunch count as a percent of the fall enrollment 
 12.21  using the preceding October 1 enrollment data.  For each school 
 12.22  site, the percentage used to calculate the ranking must be the 
 12.23  greater of (1) the percent of the fall kindergarten enrollment 
 12.24  receiving free and reduced lunch, or (2) the percent of the 
 12.25  total fall enrollment receiving free and reduced lunch.  The 
 12.26  list of ranked sites must be separated into the following 
 12.27  geographic areas:  Minneapolis district, St. Paul district, 
 12.28  suburban Twin Cities districts in the seven-county metropolitan 
 12.29  area, and school districts in greater Minnesota. 
 12.30     (b) The commissioner shall establish a process and 
 12.31  timelines to qualify school sites for the next school year.  
 12.32  School sites must be qualified in each geographic area from the 
 12.33  list of ranked sites until the estimated revenue available for 
 12.34  this program has been allocated.  The total estimated revenue of 
 12.35  $3,500,000 must be distributed to qualified school sites in each 
 12.36  geographic area as follows:  25 percent for Minneapolis sites, 
 13.1   25 percent for St. Paul sites, 25 percent for suburban Twin 
 13.2   Cities sites, and 25 percent for greater Minnesota. 
 13.3      Subd. 4.  [PROGRAM.] A qualifying school site must develop 
 13.4   its first-grade preparedness program in collaboration with other 
 13.5   providers of school readiness and child development services.  A 
 13.6   school site must either offer a full-day kindergarten program to 
 13.7   participating children who are five years of age or older for 
 13.8   the full school day every day or a half-day program for 
 13.9   participating children who are four years old.  Full-day and 
 13.10  half-day kindergarten program providers must ensure that the 
 13.11  program they provide supplements existing school readiness and 
 13.12  child development programs and complements the services provided 
 13.13  with compensatory revenue.  Where possible, individuals 
 13.14  receiving assistance under a family assistance plan can meet the 
 13.15  work activity requirement of the plan by participating in a 
 13.16  first-grade preparedness program as a volunteer. 
 13.17     Subd. 5.  [EXTENDED DAY REQUIREMENTS.] The board of a 
 13.18  qualifying school district must develop and approve a plan to 
 13.19  provide extended day services to serve as many children as 
 13.20  possible.  To accept children whose families participate in 
 13.21  child care assistance programs under section 256H.03 or 256H.05, 
 13.22  and to meet the requirements of section 245A.03, subdivision 2, 
 13.23  the board must formally approve the first-grade preparedness 
 13.24  program.  All revenue received under subdivision 6 must be 
 13.25  allocated to the qualifying school sites within the district. 
 13.26     Subd. 6.  [PREPAREDNESS REVENUE.] (a) A qualifying school 
 13.27  district is eligible for first-grade preparedness revenue equal 
 13.28  to the basic formula allowance for that year times the number of 
 13.29  pupil units calculated according to paragraph (b) in each 
 13.30  qualifying school site.  If the first-grade preparedness revenue 
 13.31  is insufficient to fully fund the formula amounts, the 
 13.32  commissioner shall prorate the revenue provided to each 
 13.33  qualifying school site. 
 13.34     (b) A pupil enrolled in a half-day first-grade preparedness 
 13.35  program under this section is counted as .53 pupil units.  A 
 13.36  pupil enrolled in a full-day first-grade preparedness program 
 14.1   under this section is counted as a kindergarten pupil under 
 14.2   section 124.17, subdivision 1, plus an additional .53 pupil 
 14.3   units. 
 14.4      (c) This revenue must supplement and not replace 
 14.5   compensatory revenue that the district uses for the same or 
 14.6   similar purposes under chapter 124A. 
 14.7      Subd. 7.  [EVALUATION.] The commissioner of children, 
 14.8   families, and learning, in consultation with representatives of 
 14.9   the state board of teaching, early childhood teachers, 
 14.10  elementary school classroom teachers, and teacher educators, 
 14.11  shall develop an evaluation for qualifying school sites to use 
 14.12  in documenting results.  The evaluation must use empirical and 
 14.13  qualitative methods to gather information on the following:  
 14.14  progress towards ensuring that every child entering the first 
 14.15  grade has the knowledge and skills necessary to succeed in 
 14.16  school; student readiness for first grade; an assessment of 
 14.17  enrolling students by their teacher, and measures of parental 
 14.18  satisfaction and parental involvement.  The commissioner shall 
 14.19  assist a school site with its evaluation at the request of the 
 14.20  site. 
 14.21     Subd. 8.  [EXPIRATION.] This section applies for fiscal 
 14.22  years 1997, 1998, and 1999, and expires June 30, 1999. 
 14.23     Sec. 12.  Minnesota Statutes 1995 Supplement, section 
 14.24  124.918, subdivision 2, is amended to read: 
 14.25     Subd. 2.  [NOTICE TO COMMISSIONER; FORMS.] By September 
 14.26  30 October 7 of each year each district shall notify the 
 14.27  commissioner of children, families, and learning of the proposed 
 14.28  levies in compliance with the levy limitations of this chapter 
 14.29  and chapters 124A, 124B, and 136D.  By January 15 of each year 
 14.30  each district shall notify the commissioner of children, 
 14.31  families, and learning of the final levies certified.  The 
 14.32  commissioner of children, families, and learning shall prescribe 
 14.33  the form of these notifications and may request any additional 
 14.34  information necessary to compute certified levy amounts. 
 14.35     Sec. 13.  Minnesota Statutes 1994, section 124A.02, 
 14.36  subdivision 25, is amended to read: 
 15.1      Subd. 25.  [NET UNAPPROPRIATED OPERATING FUND BALANCE.] 
 15.2   "Net unappropriated operating fund balance" means the sum of the 
 15.3   fund balances in the general, transportation, food service, and 
 15.4   community service funds minus the balances reserved for 
 15.5   statutory operating debt reduction, bus purchase, severance pay, 
 15.6   taconite, reemployment insurance, maintenance levy reduction, 
 15.7   operating capital, disabled access, health and safety, and 
 15.8   encumbrances, computed as of June 30 each year. 
 15.9      Sec. 14.  Minnesota Statutes 1994, section 124A.029, 
 15.10  subdivision 4, is amended to read: 
 15.11     Subd. 4.  [PER PUPIL REVENUE OPTION CONVERSION.] A district 
 15.12  may, by school board resolution, request that the department 
 15.13  convert the levy authority under section 124.912, subdivisions 2 
 15.14  and 3, or its current referendum revenue, excluding authority 
 15.15  based on a dollar amount, authorized before July 1, 1993, to an 
 15.16  allowance per pupil.  The district must adopt a resolution and 
 15.17  submit a copy of the resolution to the department by July 1, 
 15.18  1993.  (a) The department shall convert a each district's 
 15.19  referendum revenue authority for fiscal year 1995 2002 and later 
 15.20  years to an allowance per pupil unit as follows:  the revenue 
 15.21  allowance equals the amount determined by dividing the 
 15.22  district's maximum revenue under section 124A.03 or 124.912, 
 15.23  subdivisions 2 and 3, for fiscal year 1994 2001 by the 
 15.24  district's 1993-1994 2000-2001 actual pupil units.  A district's 
 15.25  maximum revenue for all later years for which the revenue is 
 15.26  authorized equals the revenue allowance times the district's 
 15.27  actual pupil units for that year.  If a district has referendum 
 15.28  authority under section 124A.03 and levy authority under section 
 15.29  124.912, subdivisions 2 and 3, and the district requests that 
 15.30  each be converted, the department shall convert separate revenue 
 15.31  allowances for each.  However, if a district's referendum 
 15.32  revenue is limited to a dollar amount, the maximum revenue under 
 15.33  section 124A.03 must not exceed that dollar amount.  If the 
 15.34  referendum authority of a district is converted according to 
 15.35  this subdivision, and the question on the referendum ballot did 
 15.36  not provide for an expiration date, the authority shall expire 
 16.1   according to section 124A.0311. 
 16.2      (b) The referendum allowance reduction shall be applied 
 16.3   first to the authority with the earliest expiration date. 
 16.4      Sec. 15.  Minnesota Statutes 1995 Supplement, section 
 16.5   124A.03, subdivision 2, is amended to read: 
 16.6      Subd. 2.  [REFERENDUM REVENUE.] (a) The revenue authorized 
 16.7   by section 124A.22, subdivision 1, may be increased in the 
 16.8   amount approved by the voters of the district at a referendum 
 16.9   called for the purpose.  The referendum may be called by the 
 16.10  school board or shall be called by the school board upon written 
 16.11  petition of qualified voters of the district.  The referendum 
 16.12  shall be conducted one or two calendar years before the 
 16.13  increased levy authority, if approved, first becomes payable. 
 16.14  Only one election to approve an increase may be held in a 
 16.15  calendar year.  Unless the referendum is conducted by mail under 
 16.16  paragraph (g), the referendum must be held on the first Tuesday 
 16.17  after the first Monday in November.  The ballot shall state the 
 16.18  maximum amount of the increased revenue per actual pupil unit, 
 16.19  the estimated referendum tax rate as a percentage of market 
 16.20  value in the first year it is to be levied, and that the revenue 
 16.21  shall be used to finance school operations.  The ballot may 
 16.22  state a schedule, determined by the board, of increased revenue 
 16.23  per actual pupil units that differs from year to year over the 
 16.24  number of years for which the increased revenue is authorized.  
 16.25  If the ballot contains a schedule showing different amounts, it 
 16.26  shall also indicate the estimated referendum tax rate as a 
 16.27  percent of market value for the amount specified for the first 
 16.28  year and for the maximum amount specified in the schedule.  The 
 16.29  ballot may state that existing referendum levy authority is 
 16.30  expiring.  In this case, the ballot may also compare the 
 16.31  proposed levy authority to the existing expiring levy authority, 
 16.32  and express the proposed increase as the amount, if any, over 
 16.33  the expiring referendum levy authority.  The ballot shall 
 16.34  designate the specific number of years, not to exceed ten, for 
 16.35  which the referendum authorization shall apply.  The notice 
 16.36  required under section 275.60 may be modified to read, in cases 
 17.1   of renewing existing levies: 
 17.2      "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
 17.3      FOR A PROPERTY TAX INCREASE." 
 17.4      The ballot may contain a textual portion with the 
 17.5   information required in this subdivision and a question stating 
 17.6   substantially the following:  
 17.7      "Shall the increase in the revenue proposed by (petition 
 17.8   to) the board of ........., School District No. .., be approved?"
 17.9      If approved, an amount equal to the approved revenue per 
 17.10  actual pupil unit times the actual pupil units for the school 
 17.11  year beginning in the year after the levy is certified shall be 
 17.12  authorized for certification for the number of years approved, 
 17.13  if applicable, or until revoked or reduced by the voters of the 
 17.14  district at a subsequent referendum. 
 17.15     (b) The school board shall prepare and deliver by first 
 17.16  class mail at least 15 days but no more than 30 days prior to 
 17.17  the day of the referendum to each taxpayer a notice of the 
 17.18  referendum and the proposed revenue increase.  The school board 
 17.19  need not mail more than one notice to any taxpayer.  For the 
 17.20  purpose of giving mailed notice under this subdivision, owners 
 17.21  shall be those shown to be owners on the records of the county 
 17.22  auditor or, in any county where tax statements are mailed by the 
 17.23  county treasurer, on the records of the county treasurer.  Every 
 17.24  property owner whose name does not appear on the records of the 
 17.25  county auditor or the county treasurer shall be deemed to have 
 17.26  waived this mailed notice unless the owner has requested in 
 17.27  writing that the county auditor or county treasurer, as the case 
 17.28  may be, include the name on the records for this purpose.  The 
 17.29  notice must project the anticipated amount of tax increase in 
 17.30  annual dollars and annual percentage for typical residential 
 17.31  homesteads, agricultural homesteads, apartments, and 
 17.32  commercial-industrial property within the school district. 
 17.33     The notice for a referendum may state that an existing 
 17.34  referendum levy is expiring and project the anticipated amount 
 17.35  of increase over the existing referendum levy in the first year, 
 17.36  if any, in annual dollars and annual percentage for typical 
 18.1   residential homesteads, agricultural homesteads, apartments, and 
 18.2   commercial-industrial property within the school district. 
 18.3      The notice must include the following statement:  "Passage 
 18.4   of this referendum will result in an increase in your property 
 18.5   taxes."  However, in cases of renewing existing levies, the 
 18.6   notice may include the following statement:  "Passage of this 
 18.7   referendum may result in an increase in your property taxes." 
 18.8      (c) A referendum on the question of revoking or reducing 
 18.9   the increased revenue amount authorized pursuant to paragraph 
 18.10  (a) may be called by the school board and shall be called by the 
 18.11  school board upon the written petition of qualified voters of 
 18.12  the district.  A referendum to revoke or reduce the levy amount 
 18.13  must be based upon the dollar amount, local tax rate, or amount 
 18.14  per actual pupil unit, that was stated to be the basis for the 
 18.15  initial authorization.  Revenue approved by the voters of the 
 18.16  district pursuant to paragraph (a) must be received at least 
 18.17  once before it is subject to a referendum on its revocation or 
 18.18  reduction for subsequent years.  Only one revocation or 
 18.19  reduction referendum may be held to revoke or reduce referendum 
 18.20  revenue for any specific year and for years thereafter. 
 18.21     (d) A petition authorized by paragraph (a) or (c) shall be 
 18.22  effective if signed by a number of qualified voters in excess of 
 18.23  15 percent of the registered voters of the school district on 
 18.24  the day the petition is filed with the school board.  A 
 18.25  referendum invoked by petition shall be held on the date 
 18.26  specified in paragraph (a). 
 18.27     (e) The approval of 50 percent plus one of those voting on 
 18.28  the question is required to pass a referendum authorized by this 
 18.29  subdivision. 
 18.30     (f) At least 15 days prior to the day of the referendum, 
 18.31  the district shall submit a copy of the notice required under 
 18.32  paragraph (b) to the commissioner of children, families, and 
 18.33  learning.  Within 15 days after the results of the referendum 
 18.34  have been certified by the school board, or in the case of a 
 18.35  recount, the certification of the results of the recount by the 
 18.36  canvassing board, the district shall notify the commissioner of 
 19.1   children, families, and learning of the results of the 
 19.2   referendum. 
 19.3      (g) Except for a referendum held under subdivision 2b, any 
 19.4   referendum under this section held on a day other than the first 
 19.5   Tuesday after the first Monday in November must be conducted by 
 19.6   mail in accordance with section 204B.46.  Notwithstanding 
 19.7   paragraph (b) to the contrary, in the case of a referendum 
 19.8   conducted by mail under this paragraph, the notice required by 
 19.9   paragraph (b) shall be prepared and delivered by first class 
 19.10  mail at least 20 days before the referendum. 
 19.11     Sec. 16.  Minnesota Statutes 1994, section 124A.03, 
 19.12  subdivision 2b, is amended to read: 
 19.13     Subd. 2b.  [REFERENDUM DATE.] In addition to the referenda 
 19.14  allowed in subdivision 2, clause (a), the commissioner may 
 19.15  authorize a referendum for a different day.  
 19.16     (a) The commissioner may grant authority to a district to 
 19.17  hold a referendum on a different day if the district is in 
 19.18  statutory operating debt and has an approved plan or has 
 19.19  received an extension from the department to file a plan to 
 19.20  eliminate the statutory operating debt.  
 19.21     (b) The commissioner may grant authority for a district to 
 19.22  hold a referendum on a different day if:  (1) the district will 
 19.23  conduct a bond election under chapter 475 on that same day; and 
 19.24  (2) the proceeds of the referendum will provide only additional 
 19.25  operating revenue necessitated by the facility for which bonding 
 19.26  authority is sought.  The commissioner may only grant authority 
 19.27  under this paragraph if the district demonstrates to the 
 19.28  commissioner's satisfaction that the district's ability to 
 19.29  operate the new facility will be significantly affected if the 
 19.30  operating referendum is not conducted until the November general 
 19.31  election.  Authority under this paragraph expires November 30, 
 19.32  1998. 
 19.33     (c) The commissioner must approve, deny, or modify each 
 19.34  district's request for a referendum levy on a different day 
 19.35  within 60 days of receiving the request from a district. 
 19.36     Sec. 17.  Minnesota Statutes 1994, section 124A.03, 
 20.1   subdivision 3b, is amended to read: 
 20.2      Subd. 3b.  [FISCAL YEAR 1997 REFERENDUM ALLOWANCE 
 20.3   REDUCTION.] For fiscal year 1997, a district's referendum 
 20.4   allowance under subdivision 1c is reduced by the amounts 
 20.5   calculated in paragraphs (a), (b), (c), and (d). 
 20.6      (a) The referendum allowance reduction equals the amount by 
 20.7   which a district's supplemental revenue reduction exceeds the 
 20.8   district's supplemental revenue allowance for fiscal year 1993. 
 20.9      (b) Notwithstanding paragraph (a), if a district's initial 
 20.10  referendum allowance is less than ten percent of the formula 
 20.11  allowance for that year, the reduction equals the lesser of (1) 
 20.12  an amount equal to $100, or (2) the amount calculated in 
 20.13  paragraph (a). 
 20.14     (c) Notwithstanding paragraph (a) or (b), a school 
 20.15  district's referendum allowance reduction equals (1) an amount 
 20.16  equal to $100, times (2) one minus the ratio of 20 percent of 
 20.17  the formula allowance minus the district's initial referendum 
 20.18  allowance limit to 20 percent of the formula allowance for that 
 20.19  year if: 
 20.20     (i) the district's adjusted net tax capacity for assessment 
 20.21  year 1992 per actual pupil unit for fiscal year 1995 is less 
 20.22  than $3,000; 
 20.23     (ii) the district's net unappropriated operating fund 
 20.24  balance as of June 30, 1993, divided by the actual pupil units 
 20.25  for fiscal year 1995 is less than $200; 
 20.26     (iii) the district's supplemental revenue allowance for 
 20.27  fiscal year 1993 is equal to zero; and 
 20.28     (iv) the district's initial referendum revenue authority 
 20.29  for the current year divided by the district's net tax capacity 
 20.30  for assessment year 1992 is greater than ten percent. 
 20.31     (d) Notwithstanding paragraph (a), (b), or (c), the 
 20.32  referendum revenue reduction for a newly reorganized district is 
 20.33  computed as follows: 
 20.34     (1) for a newly reorganized district created effective July 
 20.35  1, 1994, the referendum revenue reduction equals the lesser of 
 20.36  the amount calculated for the combined district under paragraph 
 21.1   (a), (b), or (c), or the sum of the amounts by which each of the 
 21.2   reorganizing district's supplemental revenue reduction exceeds 
 21.3   its respective supplemental revenue allowances calculated for 
 21.4   the districts as if they were still in existence for fiscal year 
 21.5   1995; or 
 21.6      (2) for a newly reorganized district created after July 1, 
 21.7   1994, the referendum revenue reduction equals the lesser of the 
 21.8   amount calculated for the combined district under paragraph (a), 
 21.9   (b), or (c), or the sum of the amounts by which each of the 
 21.10  reorganizing district's supplemental revenue reduction exceeds 
 21.11  its respective supplemental revenue allowances calculated for 
 21.12  the year preceding the year of reorganization. 
 21.13     Sec. 18.  Minnesota Statutes 1994, section 124A.03, is 
 21.14  amended by adding a subdivision to read: 
 21.15     Subd. 3c.  [REFERENDUM ALLOWANCE REDUCTION.] For fiscal 
 21.16  year 1998 and later, a district's referendum allowance for 
 21.17  referendum authority under subdivision 1c is reduced as provided 
 21.18  in this subdivision.  
 21.19     (a) For referendum revenue authority approved before June 
 21.20  1, 1996, and effective for fiscal year 1997, the reduction 
 21.21  equals the amount of the reduction computed for fiscal year 1997 
 21.22  under subdivision 3b.  
 21.23     (b) For referendum revenue authority approved before June 
 21.24  1, 1996, and effective beginning in fiscal year 1998, the 
 21.25  reduction equals the amount of the reduction computed for fiscal 
 21.26  year 1998 under subdivision 3b.  
 21.27     (c) For referendum revenue authority approved after May 31, 
 21.28  1996, there is no reduction.  
 21.29     (d) For districts with more than one referendum authority, 
 21.30  the reduction shall be computed separately for each authority.  
 21.31  The reduction shall be applied first to authorities levied 
 21.32  against tax capacity, and then to authorities levied against 
 21.33  referendum market value.  For districts with more than one 
 21.34  authority levied against net tax capacity or against referendum 
 21.35  market value, the referendum allowance reduction shall be 
 21.36  applied first to the authority with the earliest expiration date.
 22.1      (e) For a newly reorganized district created after July 1, 
 22.2   1996, the referendum revenue reduction equals the lesser of the 
 22.3   amount calculated for the combined district, or the sum of the 
 22.4   amounts by which each of the reorganizing district's 
 22.5   supplemental revenue reduction exceeds its respective 
 22.6   supplemental revenue allowances calculated for the year 
 22.7   preceding the year of reorganization. 
 22.8      Sec. 19.  Minnesota Statutes 1995 Supplement, section 
 22.9   124A.0311, subdivision 2, is amended to read: 
 22.10     Subd. 2.  [CONVERSION TO MARKET VALUE.] (a) Prior to June 
 22.11  1, 1997, by June 1 of each year, a school board may, by 
 22.12  resolution of a majority of its board, convert any remaining 
 22.13  portion of its referendum authority under section 124A.03, 
 22.14  subdivision 2, that is authorized to be levied against net tax 
 22.15  capacity to referendum authority that is authorized to be levied 
 22.16  against the referendum market value of all taxable property 
 22.17  located within the school district.  At the option of the school 
 22.18  board, any remaining portion of its referendum authority may be 
 22.19  converted in two or more parts at separate times.  The 
 22.20  referendum authority may be converted from net tax capacity to 
 22.21  referendum market value according to a schedule adopted by 
 22.22  resolution of the school board for years prior to taxes payable 
 22.23  in 2001, provided that, for taxes payable in 2001 and later, the 
 22.24  full amount of the referendum authority is levied against 
 22.25  referendum market value.  The board must notify the commissioner 
 22.26  of children, families, and learning of the amount of referendum 
 22.27  authority that has been converted from net tax capacity to 
 22.28  referendum market value, if any, by June 15, of each year.  The 
 22.29  maximum length of a referendum converted under this paragraph is 
 22.30  ten years. 
 22.31     (b) For referendum levy amounts converted between June 1, 
 22.32  1997, and June 1, 1998, all other conditions of this subdivision 
 22.33  apply except that the maximum length of the referendum is 
 22.34  limited to seven years. 
 22.35     (c) For referendum levy amounts converted between June 1, 
 22.36  1998, and June 1, 1999, all other conditions of this subdivision 
 23.1   apply except that the maximum length of the referendum is 
 23.2   limited to six years. 
 23.3      (d) For referendum levy amounts converted between June 1, 
 23.4   1999, and June 1, 2000, all other conditions of this subdivision 
 23.5   apply except that the maximum length of the referendum is 
 23.6   limited to five years. 
 23.7      Sec. 20.  Minnesota Statutes 1994, section 124A.0311, 
 23.8   subdivision 3, is amended to read: 
 23.9      Subd. 3.  [ALTERNATIVE CONVERSION.] A school district that 
 23.10  has a referendum that is levied against net tax capacity that 
 23.11  expires before taxes payable in 1998 may convert its referendum 
 23.12  authority according to this subdivision.  In the payable year 
 23.13  prior to the year of expiration, the school board may authorize 
 23.14  a referendum under section 124A.03.  Notwithstanding any other 
 23.15  law to the contrary, the district may propose, and if approved 
 23.16  by its electors, have its referendum authority reauthorized in 
 23.17  part on tax capacity and in part on referendum market value 
 23.18  according to a schedule adopted by resolution of the school 
 23.19  board for years prior to taxes payable in 2001, provided that, 
 23.20  for taxes payable in 2001 and later, the full amount of 
 23.21  referendum authority is levied against referendum market value.  
 23.22  If the full amount of the referendum is reauthorized 
 23.23  on referendum market value prior to taxes payable in 1998, the 
 23.24  referendum may extend for ten years.  If the referendum becomes 
 23.25  fully reauthorized on referendum market value for a later year, 
 23.26  the referendum shall not extend for more than the maximum number 
 23.27  of years allowed under subdivision 2. 
 23.28     Sec. 21.  Minnesota Statutes 1994, section 124A.035, 
 23.29  subdivision 4, is amended to read: 
 23.30     Subd. 4.  [COUNTY APPORTIONMENT DEDUCTION.] Each year the 
 23.31  amount of money apportioned to a school district for that year 
 23.32  pursuant to section 124.10, subdivision 2, excluding any 
 23.33  district where the general education levy is determined 
 23.34  according to section 124A.23, subdivision 3, shall be deducted 
 23.35  from the general education aid earned by that district for the 
 23.36  same year or from aid earned from other state sources.  
 24.1      Sec. 22.  Minnesota Statutes 1994, section 124A.036, is 
 24.2   amended by adding a subdivision to read: 
 24.3      Subd. 6.  [CHARTER SCHOOLS.] (a) The general education aid 
 24.4   for districts must be adjusted for each pupil attending a 
 24.5   charter school under section 120.064.  The adjustments must be 
 24.6   made according to this subdivision. 
 24.7      (b) General education aid paid to a resident district must 
 24.8   be reduced by an amount equal to the general education revenue 
 24.9   exclusive of compensatory revenue. 
 24.10     (c) General education aid paid to a district in which a 
 24.11  charter school not providing transportation according to section 
 24.12  120.064, subdivision 15, is located shall be increased by an 
 24.13  amount equal to the product of:  (1) the sum of $170, plus the 
 24.14  transportation sparsity allowance for the district, plus the 
 24.15  transportation transition allowance for the district; times (2) 
 24.16  the pupil units attributable to the pupil.  
 24.17     (d) If the amount of the reduction to be made from the 
 24.18  general education aid of the resident district is greater than 
 24.19  the amount of general education aid otherwise due the district, 
 24.20  the excess reduction must be made from other state aids due the 
 24.21  district. 
 24.22     Sec. 23.  Minnesota Statutes 1995 Supplement, section 
 24.23  124A.22, subdivision 10, is amended to read: 
 24.24     Subd. 10.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
 24.25  fiscal year 1997 and thereafter, total operating capital revenue 
 24.26  for a district equals the amount determined under paragraph (b), 
 24.27  (c), (d), (e), or (f), plus $68 times the actual pupil units for 
 24.28  the school year.  The revenue must be placed in a reserved 
 24.29  account in the general fund and may only be used according to 
 24.30  subdivision 11. 
 24.31     (b) For fiscal years 1996 and later, capital revenue for a 
 24.32  district equals $100 times the district's maintenance cost index 
 24.33  times its actual pupil units for the school year. 
 24.34     (c) For 1996 and later fiscal years, the previous formula 
 24.35  revenue for a district equals $128 times its actual pupil units 
 24.36  for fiscal year 1995. 
 25.1      (d) Notwithstanding paragraph (b), for fiscal year 1996, 
 25.2   the revenue for each district equals 25 percent of the amount 
 25.3   determined in paragraph (b) plus 75 percent of the previous 
 25.4   formula revenue. 
 25.5      (e) Notwithstanding paragraph (b), for fiscal year 1997, 
 25.6   the revenue for each district equals 50 percent of the amount 
 25.7   determined in paragraph (b) plus 50 percent of the previous 
 25.8   formula revenue. 
 25.9      (f) Notwithstanding paragraph (b), for fiscal year 1998, 
 25.10  the revenue for each district equals 75 percent of the amount 
 25.11  determined in paragraph (b) plus 25 percent of the previous 
 25.12  formula revenue. 
 25.13     (g) The revenue in paragraph (b) for a district that 
 25.14  operates a program under section 121.585, is increased by an 
 25.15  amount equal to $15 times the number of actual pupil units at 
 25.16  the site where the program is implemented. 
 25.17     Sec. 24.  Minnesota Statutes 1994, section 124A.22, is 
 25.18  amended by adding a subdivision to read: 
 25.19     Subd. 11a.  [USES OF REVENUE.] Except as otherwise 
 25.20  prohibited by law, a district may spend general fund money for 
 25.21  capital purposes. 
 25.22     Sec. 25.  Minnesota Statutes 1995 Supplement, section 
 25.23  124A.22, subdivision 13b, is amended to read: 
 25.24     Subd. 13b.  [TRANSITION ALLOWANCE.] (a) A district's 
 25.25  transportation transition allowance for fiscal year 1997 equals 
 25.26  the result of the following computation: 
 25.27     (1) if the result in subdivision 13a, paragraph (a), clause 
 25.28  (iii), for fiscal year 1997 is less than the fiscal year 1996 
 25.29  base allowance, the transportation transition allowance equals 
 25.30  the fiscal year 1996 base allowance minus the result in section 
 25.31  124A.22, subdivision 13a, paragraph (a), clause (iii). 
 25.32     (2) if the result in subdivision 13a, paragraph (b), for 
 25.33  fiscal year 1997 is greater than the fiscal year 1996 base 
 25.34  allowance and less than 110 percent of the fiscal year 1996 base 
 25.35  allowance, the transportation transition allowance equals zero. 
 25.36     (3) if the result in subdivision 13a, paragraph (b), for 
 26.1   fiscal year 1997 is greater than 110 percent of the fiscal year 
 26.2   1996 base allowance, the transportation transition allowance 
 26.3   equals 110 percent of the fiscal year 1996 base allowance minus 
 26.4   the result in subdivision 13a, paragraph (a), clause (iii). 
 26.5      (b) A district's transportation transition allowance for 
 26.6   fiscal year 1998 equals the result of the following: 
 26.7      (1) if the result in subdivision 13a, paragraph (a), clause 
 26.8   (iii), for fiscal year 1998 is less than the fiscal year 1996 
 26.9   base allowance, the transportation transition allowance equals 
 26.10  the fiscal year 1996 base allowance minus the result in 
 26.11  subdivision 13a, paragraph (a), clause (iii); or 
 26.12     (2) if the result in subdivision 13a, paragraph (a), clause 
 26.13  (iii), for fiscal year 1998 is greater than or equal to the 
 26.14  fiscal year 1996 base allowance, the transportation transition 
 26.15  allowance equals zero. 
 26.16     (c) For fiscal years 1997 and 1998, a district's training 
 26.17  and experience transition allowance is equal to the training and 
 26.18  experience revenue the district would have received under 
 26.19  Minnesota Statutes 1994, section 124A.22, subdivision 4, divided 
 26.20  by the actual pupil units for fiscal year 1997 minus $130.  For 
 26.21  fiscal year 1999 and later, a district's training and experience 
 26.22  transition allowance equals zero.  
 26.23     If the training and experience transition allowance is less 
 26.24  than zero, the reduction shall be determined according to the 
 26.25  following schedule: 
 26.26     (i) for fiscal year 1997, the reduction is equal to .9 
 26.27  times the amount initially determined; 
 26.28     (ii) for fiscal year 1998, the reduction is equal to .75 
 26.29  times the amount initially determined; 
 26.30     (iii) for fiscal year 1999, the reduction is equal to .50 
 26.31  times the amount initially determined; 
 26.32     (iv) for fiscal year 2000, the reduction is equal to .25 
 26.33  times the amount initially determined; and 
 26.34     (v) for fiscal year 2001 and thereafter, the transition 
 26.35  allowance shall not be less than zero.  
 26.36     (c) (d) A district's transition allowance for fiscal year 
 27.1   1997 and thereafter is equal to the sum of its transportation 
 27.2   transition allowance and its training and experience transition 
 27.3   allowance. 
 27.4      Sec. 26.  Minnesota Statutes 1995 Supplement, section 
 27.5   124A.23, subdivision 4, is amended to read: 
 27.6      Subd. 4.  [GENERAL EDUCATION AID.] A district's general 
 27.7   education aid is the sum of the following amounts:  
 27.8      (1) the product of (i) the difference between the general 
 27.9   education revenue, excluding transition revenue and supplemental 
 27.10  revenue, and the general education levy, times (ii) the ratio of 
 27.11  the actual amount levied to the permitted levy; 
 27.12     (2) transition aid according to section 124A.22, 
 27.13  subdivision 13e; 
 27.14     (3) supplemental aid according to section 124.214, 
 27.15  subdivision 2; 
 27.16     (4) shared time aid according to section 124A.02, 
 27.17  subdivision 21; and 
 27.18     (5) referendum aid according to section 124A.03. 
 27.19     Sec. 27.  Minnesota Statutes 1994, section 124A.28, 
 27.20  subdivision 1, is amended to read: 
 27.21     Subdivision 1.  [USE OF THE REVENUE.] The compensatory 
 27.22  education revenue under section 124A.22, subdivision 3, may be 
 27.23  used to provide eligible services to eligible pupils according 
 27.24  to section 124.311, subdivisions 3 and 4.  It also may must be 
 27.25  used to meet the educational needs of pupils whose educational 
 27.26  achievement is below the level that is appropriate for pupils of 
 27.27  their age.  These needs may be met by providing at least some of 
 27.28  the following: 
 27.29     (1) direct instructional services under the assurance of 
 27.30  mastery program according to section 124.311; 
 27.31     (2) remedial instruction in reading, language arts, and 
 27.32  mathematics to improve the achievement level of these pupils; 
 27.33     (2) (3) additional teachers and teacher aides to provide 
 27.34  more individualized instruction to these pupils; 
 27.35     (3) (4) summer programs that enable these pupils to improve 
 27.36  their achievement or that reemphasize material taught during the 
 28.1   regular school year; 
 28.2      (4) (5) in-service education for teachers, teacher aides, 
 28.3   principals, and other personnel to improve their ability to 
 28.4   recognize these pupils and provide appropriate responses to the 
 28.5   pupils' needs; 
 28.6      (5) (6) for instructional material for these pupils 
 28.7   including:  textbooks, workbooks, periodicals, pamphlets, 
 28.8   photographs, reproductions, filmstrips, prepared slides, 
 28.9   prerecorded video programs, sound recordings, desk charts, 
 28.10  games, study prints and pictures, desk maps, models, learning 
 28.11  kits, blocks and cubes, flashcards, instructional computer 
 28.12  software programs, pencils, pens, crayons, notebooks, 
 28.13  duplicating fluids, and papers; 
 28.14     (6) (7) programs to reduce truancy, encourage completion of 
 28.15  high school, enhance self-concept, provide health services, 
 28.16  provide nutrition services, provide a safe and secure learning 
 28.17  environment, provide coordination for pupils receiving services 
 28.18  from other governmental agencies, provide psychological services 
 28.19  to determine the level of social, emotional, cognitive, and 
 28.20  intellectual development, and provide counseling services, 
 28.21  guidance services, and social work services; and 
 28.22     (7) (8) bilingual programs, bicultural programs, and 
 28.23  programs for pupils of limited English proficiency; 
 28.24     (9) all day kindergarten; 
 28.25     (10) extended school day and extended school year programs; 
 28.26  and 
 28.27     (11) other methods to increase achievement, as needed.  
 28.28     Sec. 28.  Laws 1993, chapter 224, article 1, section 34, 
 28.29  subdivision 2, is amended to read: 
 28.30     Subd. 2.  [AID ADJUSTMENT.] For fiscal year 1994 1996 only, 
 28.31  the department of education children, families, and learning 
 28.32  shall include in the general education aid calculation for 
 28.33  independent school district No. 504, Slayton, or its successor 
 28.34  district, and independent school district No. 918, Chandler-Lake 
 28.35  Wilson, or its successor district, the sum of the amounts by 
 28.36  which the district's general education aid was reduced for 
 29.1   fiscal years 1992 and 1993 year 1994 under Minnesota Statutes, 
 29.2   section 124A.26. 
 29.3      Sec. 29.  Laws 1993, chapter 224, article 1, section 34, 
 29.4   subdivision 3, is amended to read: 
 29.5      Subd. 3.  [LEVY ADJUSTMENT.] For 1993 1996 taxes payable in 
 29.6   1994 1997 only, independent school district No. 504, Slayton, or 
 29.7   its successor district, and independent school district No. 918, 
 29.8   Chandler-Lake Wilson, or its successor district, may levy an 
 29.9   amount not to exceed the sum of the levy reductions for 
 29.10  fiscal years 1992 and 1993 year 1994 resulting from the general 
 29.11  education revenue fund balance reduction under Minnesota 
 29.12  Statutes, section 124A.26. 
 29.13     Sec. 30.  Laws 1995, First Special Session chapter 3, 
 29.14  article 1, section 63, subdivision 2, is amended to read: 
 29.15     Subd. 2.  [REVENUE FOR FISCAL YEAR 1997.] Minnesota 
 29.16  Statutes 1994, sections 121.912, subdivision 8; 124.243; 
 29.17  124.244; 124A.26; and 126.019, are repealed effective for 
 29.18  revenue for fiscal year 1997. 
 29.19     Sec. 31.  Laws 1995, First Special Session, chapter 3, 
 29.20  article 15, section 25, is amended to read: 
 29.21     Sec. 25.  [HOMESTEAD AND AGRICULTURAL CREDIT ADJUSTMENT.] 
 29.22     (a) For the computation of homestead and agricultural aid 
 29.23  for taxes payable in 1996, the commissioner of revenue shall 
 29.24  permanently reduce a school district's homestead and 
 29.25  agricultural aid by an amount equal to the lesser of:  (1) 25 
 29.26  percent of the amount of the district's homestead and 
 29.27  agricultural aid for calendar year 1995; or (2) an amount equal 
 29.28  to one percent times the district's adjusted net tax capacity 
 29.29  for assessment year 1994. 
 29.30     (b) Prior to For the computation of homestead and 
 29.31  agricultural aid for taxes payable in 1997, the commissioner of 
 29.32  revenue shall permanently reduce the school district's homestead 
 29.33  and agricultural aid by an amount equal to the lesser of:  
 29.34  (1) 50 25 percent of the amount of the district's homestead and 
 29.35  agricultural aid for calendar year 1995; or (2) an amount equal 
 29.36  to one percent times the district's adjusted net tax capacity 
 30.1   for assessment year 1994. 
 30.2      (c) Prior to For the computation of homestead and 
 30.3   agricultural aid for taxes payable in 1998, the commissioner of 
 30.4   revenue shall permanently reduce a school district's homestead 
 30.5   and agricultural aid by an amount equal to the lesser of:  
 30.6   (1) 75 25 percent of the amount of the district's homestead and 
 30.7   agricultural aid for calendar year 1995; or (2) an amount equal 
 30.8   to one percent times the district's adjusted net tax capacity 
 30.9   for assessment year 1994. 
 30.10     (d) Prior to For the computation of homestead and 
 30.11  agricultural aid for taxes payable in 1999, the commissioner of 
 30.12  revenue shall permanently reduce a school district's homestead 
 30.13  and agricultural aid by an amount equal to the lesser of:  
 30.14  (1) 25 percent of the amount of the district's homestead and 
 30.15  agricultural aid for calendar year 1995; or (2) an amount equal 
 30.16  to one percent times the district's adjusted net tax capacity 
 30.17  for assessment year 1994. 
 30.18     (e) Prior to For the computation of homestead and 
 30.19  agricultural aid for taxes payable in 2000 and later years, the 
 30.20  commissioner of revenue shall permanently reduce a school 
 30.21  district's homestead and agricultural aid each year by an amount 
 30.22  equal to the lesser of:  (1) any remaining amount of the 
 30.23  district's homestead and agricultural aid; or (2) an amount 
 30.24  equal to one percent times the district's adjusted net tax 
 30.25  capacity for assessment year 1994. 
 30.26     Sec. 32.  [TRANSPORTATION AND CAPITAL EXPENDITURE FUNDS; 
 30.27  DISSOLUTION.] 
 30.28     Effective July 1, 1996, the transportation fund and the 
 30.29  capital expenditure fund of each school district or other unit 
 30.30  reporting under Minnesota Statutes, section 121.908, is 
 30.31  dissolved.  The June 30, 1996, balance of the unreserved 
 30.32  transportation fund shall be transferred to the general fund 
 30.33  unreserved balance.  The June 30, 1996, balance of the reserved 
 30.34  for bus purchase account shall be transferred to the general 
 30.35  fund reserved for bus purchase account.  The June 30, 1996, 
 30.36  balance of the capital expenditure facilities account and 
 31.1   capital expenditure equipment account shall be transferred to 
 31.2   the general fund reserved for operating capital account.  The 
 31.3   June 30, 1996, balance of the reserved for health and safety 
 31.4   account shall be transferred to the general fund reserved for 
 31.5   health and safety account.  The June 30, 1996, balance of the 
 31.6   reserved for disabled accessibility account shall be transferred 
 31.7   to the general fund reserved for disabled accessibility account. 
 31.8   Effective July 1, 1996, all revenues and expenditures formerly 
 31.9   accounted for in the capital expenditure fund and the 
 31.10  transportation fund shall be accounted for in the general fund. 
 31.11     Sec. 33.  [REFERENDUM AUTHORITY; PARK RAPIDS.] 
 31.12     Subdivision 1.  [REVENUE.] Notwithstanding the reduction 
 31.13  required by Minnesota Statutes, section 124A.03, subdivision 3b, 
 31.14  the referendum revenue allowance for independent school district 
 31.15  No. 309, Park Rapids, is $315 per pupil unit.  This referendum 
 31.16  authorization is available for the number of years specified on 
 31.17  the district's referendum ballot held during June 1995. 
 31.18     Subd. 2.  [LEVY RECLASSIFICATION.] Independent school 
 31.19  district No. 309, Park Rapids, may reclassify as payable 1996 
 31.20  referendum levy other payable 1996 levies.  The amount 
 31.21  reclassified may not exceed the difference between the levy 
 31.22  authority authorized in subdivision 1 and the amount of 
 31.23  referendum levy certified by the district for taxes payable in 
 31.24  1996.  Any reclassified levy is not subject to the market value 
 31.25  requirement in Minnesota Statutes, section 124A.03, subdivision 
 31.26  2a. 
 31.27     Sec. 34.  [APPROPRIATIONS.] 
 31.28     Subdivision 1.  [DEPARTMENT.] The sums indicated in this 
 31.29  section are appropriated from the general fund to the department 
 31.30  of children, families, and learning for the fiscal years 
 31.31  designated. 
 31.32     Subd. 2.  [FIRST-GRADE PREPAREDNESS PROGRAM.] 
 31.33       $3,500,000     .....     1997 
 31.34     For grants for first-grade preparedness programs under 
 31.35  section 11.  These grants represent 100 percent of the 
 31.36  appropriations entitlement for 1997. 
 32.1      Subd. 3.  [PEQUOT LAKES.] 
 32.2        $   79,000     .....     1997 
 32.3      For a grant to independent school district No. 186, Pequot 
 32.4   Lakes, for the purpose of reducing the district's 1996 payable 
 32.5   1997 property taxes.  The commissioner must reduce the 
 32.6   district's 1996 payable 1997 property taxes by this amount. 
 32.7      Sec. 35.  [REPEALER.] 
 32.8      Laws 1993, chapter 224, article 1, section 34, subdivision 
 32.9   1, is repealed.  Section 8 is repealed July 1, 1999. 
 32.10     Sec. 36.  [EFFECTIVE DATE.] 
 32.11     Sections 1, 6, 7, 9, 10, 16, 20, 21, 28, 29, and 32 are 
 32.12  effective the day following final enactment. 
 32.13     Section 4 is effective for fiscal year 1996 and thereafter. 
 32.14     Section 33 is effective for fiscal year 1997 and later 
 32.15  years. 
 32.16                             ARTICLE 2 
 32.17                           TRANSPORTATION 
 32.18     Section 1.  Minnesota Statutes 1995 Supplement, section 
 32.19  120.17, subdivision 6, is amended to read: 
 32.20     Subd. 6.  [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 
 32.21  The responsibility for special instruction and services for a 
 32.22  child with a disability temporarily placed in another district 
 32.23  for care and treatment shall be determined in the following 
 32.24  manner: 
 32.25     (a) The school district of residence of a child shall be 
 32.26  the district in which the child's parent resides, if living, or 
 32.27  the child's guardian, or the district designated by the 
 32.28  commissioner of children, families, and learning if neither 
 32.29  parent nor guardian is living within the state. 
 32.30     (b) When a child is temporarily placed for care and 
 32.31  treatment in a day program located in another district and the 
 32.32  child continues to live within the district of residence during 
 32.33  the care and treatment, the district of residence is responsible 
 32.34  for providing transportation and an appropriate educational 
 32.35  program for the child.  The district may provide the educational 
 32.36  program at a school within the district of residence, at the 
 33.1   child's residence, or in the district in which the day treatment 
 33.2   center is located by paying tuition to that district. 
 33.3      (c) When a child is temporarily placed in a residential 
 33.4   program for care and treatment, the nonresident district in 
 33.5   which the child is placed is responsible for providing an 
 33.6   appropriate educational program for the child and necessary 
 33.7   transportation within the district while the child is attending 
 33.8   the educational program; and shall bill the district of the 
 33.9   child's residence for the actual cost of providing the program, 
 33.10  as outlined in subdivision 4, except that the board, lodging, 
 33.11  and treatment costs incurred in behalf of a child with a 
 33.12  disability placed outside of the school district of residence by 
 33.13  the commissioner of human services or the commissioner of 
 33.14  corrections or their agents, for reasons other than for making 
 33.15  provision for the child's special educational needs shall not 
 33.16  become the responsibility of either the district providing the 
 33.17  instruction or the district of the child's residence. 
 33.18     (d) The district of residence shall pay tuition and other 
 33.19  program costs, not including transportation costs, to the 
 33.20  district providing the instruction and services.  The district 
 33.21  of residence may claim general education aid for the child as 
 33.22  provided by law.  Transportation costs shall be paid by the 
 33.23  district responsible for providing the transportation and the 
 33.24  state shall pay transportation aid to that district. 
 33.25     Sec. 2.  Minnesota Statutes 1994, section 120.17, 
 33.26  subdivision 9, is amended to read: 
 33.27     Subd. 9.  [SPECIAL INSTRUCTION.] No resident of a district 
 33.28  who is eligible for special instruction and services pursuant to 
 33.29  this section shall be denied provision of this instruction and 
 33.30  service on a shared time basis because of attendance at a 
 33.31  nonpublic school defined in section 123.932, subdivision 3.  If 
 33.32  a resident pupil with a disability attends a nonpublic school 
 33.33  located within the district of residence, the district shall 
 33.34  provide necessary transportation for that pupil within the 
 33.35  district between the nonpublic school and the educational 
 33.36  facility where special instruction and services are provided on 
 34.1   a shared time basis.  If a resident pupil with a disability 
 34.2   attends a nonpublic school located in a another district 
 34.3   contiguous to the district of residence and if no agreement 
 34.4   exists pursuant to section 124A.034, subdivision 1 or 1a, for 
 34.5   the provision of special instruction and services on a shared 
 34.6   time basis to that pupil by the district of attendance and where 
 34.7   the special instruction and services are provided within the 
 34.8   district of residence, the district of residence shall provide 
 34.9   necessary transportation for that pupil between the boundary of 
 34.10  the district of residence and the educational facility where the 
 34.11  special instruction and services are provided within the 
 34.12  district of residence.  The district of residence may provide 
 34.13  necessary transportation for that pupil between its boundary and 
 34.14  the nonpublic school attended, but the nonpublic school shall 
 34.15  pay the cost of transportation provided outside the district 
 34.16  boundary. 
 34.17     Sec. 3.  Minnesota Statutes 1995 Supplement, section 
 34.18  120.181, is amended to read: 
 34.19     120.181 [PLACEMENT OF NONHANDICAPPED CHILDREN WITHOUT 
 34.20  DISABILITIES; EDUCATION AND TRANSPORTATION.] 
 34.21     The responsibility for providing instruction and 
 34.22  transportation for a pupil without a disability who has a 
 34.23  short-term or temporary physical or emotional illness or 
 34.24  disability, as determined by the standards of the state board, 
 34.25  and who is temporarily placed for care and treatment for that 
 34.26  illness or disability, shall be determined as provided in this 
 34.27  section.  
 34.28     (a) The school district of residence of the pupil shall be 
 34.29  the district in which the pupil's parent or guardian resides or 
 34.30  the district designated by the commissioner of children, 
 34.31  families, and learning if neither parent nor guardian is living 
 34.32  within the state.  
 34.33     (b) Prior to the placement of a pupil for care and 
 34.34  treatment, the district of residence shall be notified and 
 34.35  provided an opportunity to participate in the placement 
 34.36  decision.  When an immediate emergency placement is necessary 
 35.1   and time does not permit resident district participation in the 
 35.2   placement decision, the district in which the pupil is 
 35.3   temporarily placed, if different from the district of residence, 
 35.4   shall notify the district of residence of the emergency 
 35.5   placement within 15 days of the placement.  
 35.6      (c) When a pupil without a disability is temporarily placed 
 35.7   for care and treatment in a day program and the pupil continues 
 35.8   to live within the district of residence during the care and 
 35.9   treatment, the district of residence shall provide instruction 
 35.10  and necessary transportation for the pupil.  The district may 
 35.11  provide the instruction at a school within the district of 
 35.12  residence, at the pupil's residence, or in the case of a 
 35.13  placement outside of the resident district, in the district in 
 35.14  which the day treatment program is located by paying tuition to 
 35.15  that district.  The district of placement may contract with a 
 35.16  facility to provide instruction by teachers licensed by the 
 35.17  state board of teaching.  
 35.18     (d) When a pupil without a disability is temporarily placed 
 35.19  in a residential program for care and treatment, the district in 
 35.20  which the pupil is placed shall provide instruction for the 
 35.21  pupil and necessary transportation within that district while 
 35.22  the pupil is receiving instruction, and in the case of a 
 35.23  placement outside of the district of residence, the nonresident 
 35.24  district shall bill the district of residence for the actual 
 35.25  cost of providing the instruction for the regular school year 
 35.26  and for summer school, excluding transportation costs.  When a 
 35.27  pupil without a disability is temporarily placed in a 
 35.28  residential program outside the district of residence, the 
 35.29  administrator of the court placing the pupil shall send timely 
 35.30  written notice of the placement to the district of residence.  
 35.31  The district of placement may contract with a residential 
 35.32  facility to provide instruction by teachers licensed by the 
 35.33  state board of teaching. 
 35.34     (e) The district of residence shall include the pupil in 
 35.35  its residence count of pupil units and pay tuition as provided 
 35.36  in section 124.18 to the district providing the instruction.  
 36.1   Transportation costs shall be paid by the district providing the 
 36.2   transportation and the state shall pay transportation aid to 
 36.3   that district.  For purposes of computing state transportation 
 36.4   aid, pupils governed by this subdivision shall be included in 
 36.5   the handicapped disabled transportation category.  
 36.6      Sec. 4.  Minnesota Statutes 1994, section 120.73, 
 36.7   subdivision 1, is amended to read: 
 36.8      Subdivision 1.  A school board is authorized to require 
 36.9   payment of fees in the following areas: 
 36.10     (a) in any program where the resultant product, in excess 
 36.11  of minimum requirements and at the pupil's option, becomes the 
 36.12  personal property of the pupil; 
 36.13     (b) admission fees or charges for extra curricular 
 36.14  activities, where attendance is optional; 
 36.15     (c) a security deposit for the return of materials, 
 36.16  supplies, or equipment; 
 36.17     (d) personal physical education and athletic equipment and 
 36.18  apparel, although any pupil may personally provide it if it 
 36.19  meets reasonable requirements and standards relating to health 
 36.20  and safety established by the school board; 
 36.21     (e) items of personal use or products which a student has 
 36.22  an option to purchase such as student publications, class rings, 
 36.23  annuals, and graduation announcements; 
 36.24     (f) fees specifically permitted by any other statute, 
 36.25  including but not limited to section 171.04, subdivision 1, 
 36.26  clause (1); 
 36.27     (g) field trips considered supplementary to a district 
 36.28  educational program; 
 36.29     (h) any authorized voluntary student health and accident 
 36.30  benefit plan; 
 36.31     (i) for the use of musical instruments owned or rented by 
 36.32  the district, a reasonable rental fee not to exceed either the 
 36.33  rental cost to the district or the annual depreciation plus the 
 36.34  actual annual maintenance cost for each instrument; 
 36.35     (j) transportation of pupils to and from extra curricular 
 36.36  activities conducted at locations other than school, where 
 37.1   attendance is optional; 
 37.2      (k) transportation of pupils to and from school for which 
 37.3   aid for fiscal year 1996 is not authorized under Minnesota 
 37.4   Statutes 1994, section 124.223, subdivision 1, and for which 
 37.5   levy for fiscal year 1996 is not authorized under Minnesota 
 37.6   Statutes 1994, section 124.226, subdivision 5, if a district 
 37.7   charging fees for transportation of pupils establishes 
 37.8   guidelines for that transportation to ensure that no pupil is 
 37.9   denied transportation solely because of inability to pay; 
 37.10     (l) motorcycle classroom education courses conducted 
 37.11  outside of regular school hours; provided the charge shall not 
 37.12  exceed the actual cost of these courses to the school district; 
 37.13     (m) transportation to and from post-secondary institutions 
 37.14  for pupils enrolled under the post-secondary enrollment options 
 37.15  program under section 123.39, subdivision 16.  Fees collected 
 37.16  for this service must be reasonable and shall be used to reduce 
 37.17  the cost of operating the route.  Families who qualify for 
 37.18  mileage reimbursement under section 123.3514, subdivision 8, may 
 37.19  use their state mileage reimbursement to pay this fee.  If no 
 37.20  fee is charged, districts shall allocate costs based on the 
 37.21  number of pupils riding the route. 
 37.22     Sec. 5.  Minnesota Statutes 1995 Supplement, section 
 37.23  120.74, subdivision 1, is amended to read: 
 37.24     Subdivision 1.  (a) A school board is not authorized to 
 37.25  charge fees in the following areas: 
 37.26     (1) textbooks, workbooks, art materials, laboratory 
 37.27  supplies, towels; 
 37.28     (2) supplies necessary for participation in any 
 37.29  instructional course except as authorized in sections 120.73 and 
 37.30  120.75; 
 37.31     (3) field trips which are required as a part of a basic 
 37.32  education program or course; 
 37.33     (4) graduation caps, gowns, any specific form of dress 
 37.34  necessary for any educational program, and diplomas; 
 37.35     (5) instructional costs for necessary school personnel 
 37.36  employed in any course or educational program required for 
 38.1   graduation; 
 38.2      (6) library books required to be utilized for any 
 38.3   educational course or program; 
 38.4      (7) admission fees, dues, or fees for any activity the 
 38.5   pupil is required to attend; 
 38.6      (8) any admission or examination cost for any required 
 38.7   educational course or program; 
 38.8      (9) locker rentals; 
 38.9      (10) transportation of pupils (i) for which state 
 38.10  transportation aid for fiscal year 1996 is authorized pursuant 
 38.11  to Minnesota Statutes 1994, section 124.223 or (ii) for which a 
 38.12  levy for fiscal year 1996 is authorized under Minnesota Statutes 
 38.13  1994, section 124.226, subdivision 5. 
 38.14     (b) Notwithstanding paragraph (a), clauses (1) and (6), a 
 38.15  school board may charge fees for textbooks, workbooks, and 
 38.16  library books, lost or destroyed by students.  The board must 
 38.17  annually notify parents or guardians and students about its 
 38.18  policy to charge a fee under this paragraph. 
 38.19     Sec. 6.  Minnesota Statutes 1994, section 123.39, 
 38.20  subdivision 8b, is amended to read: 
 38.21     Subd. 8b.  School districts may use school district owned 
 38.22  or contractor operated school buses to provide transportation 
 38.23  along regular school bus routes on a space available basis for 
 38.24  senior citizens who are 62 years of age or older any person, 
 38.25  provided that this use of a bus does not interfere with the 
 38.26  transportation of pupils to and from school or other authorized 
 38.27  transportation of pupils.  In all cases, the total additional 
 38.28  cost of providing these services, as determined by sound 
 38.29  accounting procedures, shall be paid by charges made against 
 38.30  those using these services or some third-party payor.  In no 
 38.31  case shall the additional cost of this transportation be paid by 
 38.32  the school district. 
 38.33     The provisions of section 65B.47, subdivision 4, shall be 
 38.34  applicable to senior citizens any person being transported 
 38.35  pursuant to this subdivision. 
 38.36     Sec. 7.  Minnesota Statutes 1995 Supplement, section 
 39.1   123.7991, subdivision 2, is amended to read: 
 39.2      Subd. 2.  [STUDENT TRAINING.] (a) Each school district 
 39.3   shall provide public school pupils enrolled in grades 
 39.4   kindergarten through 10 with age-appropriate school bus safety 
 39.5   training.  The training shall be results-oriented and shall 
 39.6   consist of both classroom instruction and practical training 
 39.7   using a school bus.  Upon completing the training, a student 
 39.8   shall be able to demonstrate knowledge and understanding of at 
 39.9   least the following competencies and concepts: 
 39.10     (1) transportation by school bus is a privilege and not a 
 39.11  right; 
 39.12     (2) district policies for student conduct and school bus 
 39.13  safety; 
 39.14     (3) appropriate conduct while on the school bus; 
 39.15     (4) the danger zones surrounding a school bus; 
 39.16     (5) procedures for safely boarding and leaving a school 
 39.17  bus; 
 39.18     (6) procedures for safe street or road crossing; and 
 39.19     (7) school bus evacuation and other emergency procedures. 
 39.20     (b) Each nonpublic school located within the district shall 
 39.21  provide all nonpublic school pupils enrolled in grades 
 39.22  kindergarten through 10 who are transported by school bus at 
 39.23  public expense and attend school within the district's 
 39.24  boundaries with training as required in paragraph (a).  The 
 39.25  school district shall make a bus available for the practical 
 39.26  training if the district transports the nonpublic students.  
 39.27  Each nonpublic school shall provide the instruction. 
 39.28     (c) Student school bus safety training shall commence 
 39.29  during school bus safety week.  All students enrolled in grades 
 39.30  kindergarten through 3 who are transported by school bus and are 
 39.31  enrolled during the first or second week of school must 
 39.32  demonstrate achievement of the school bus safety training 
 39.33  competencies by the end of the third week of school.  All 
 39.34  students enrolled in grades 4 through 10 who are transported by 
 39.35  school bus and are enrolled during the first or second week of 
 39.36  school must demonstrate achievement of the competencies by the 
 40.1   end of the sixth week of school.  Students enrolled in grades 
 40.2   kindergarten through 10 who enroll in a school after the second 
 40.3   week of school and are transported by school bus shall undergo 
 40.4   school bus safety training and demonstrate achievement of the 
 40.5   school bus safety competencies within four weeks of the first 
 40.6   day of attendance.  The pupil transportation safety director in 
 40.7   each district must certify to the commissioner of children, 
 40.8   families, and learning annually that all students transported by 
 40.9   school bus within the district have satisfactorily demonstrated 
 40.10  knowledge and understanding of the school bus safety 
 40.11  competencies according to this section or provide an explanation 
 40.12  for a student's failure to demonstrate the competencies.  The 
 40.13  principal or other chief administrator of each nonpublic school 
 40.14  must certify annually to the public transportation safety 
 40.15  director of the district in which the school is located that all 
 40.16  of the school's students transported by school bus at public 
 40.17  expense have received training.  A school district may deny 
 40.18  transportation to a student who fails to demonstrate the 
 40.19  competencies, unless the student is unable to achieve the 
 40.20  competencies due to a disability, or to a student who attends a 
 40.21  nonpublic school that fails to provide training as required by 
 40.22  this subdivision. 
 40.23     (d) A school district and a nonpublic school with students 
 40.24  transported by school bus at public expense must, to the extent 
 40.25  possible, provide kindergarten pupils with bus safety training 
 40.26  before the first day of school. 
 40.27     (e) A school district and a nonpublic school with students 
 40.28  transported by school bus at public expense must also provide 
 40.29  student safety education for bicycling and pedestrian safety, 
 40.30  for students enrolled in grades kindergarten through 5. 
 40.31     (f) A school district and a nonpublic school with students 
 40.32  transported by school bus at public expense must make reasonable 
 40.33  accommodations for the school bus, bicycle, and pedestrian 
 40.34  safety training of pupils known to speak English as a second 
 40.35  language and pupils with disabilities. 
 40.36     Sec. 8.  Minnesota Statutes 1995 Supplement, section 
 41.1   124.223, subdivision 4, is amended to read: 
 41.2      Subd. 4.  [PUPILS WITH DISABILITIES.] School districts 
 41.3   may shall provide transportation or board and lodging of a pupil 
 41.4   with a disability when that pupil cannot be transported on a 
 41.5   regular school bus, the conveying of pupils with a disability 
 41.6   between home or a respite care facility and school and within 
 41.7   the school plant, necessary transportation of pupils with a 
 41.8   disability from home or from school to other buildings, 
 41.9   including centers such as developmental achievement centers, 
 41.10  hospitals and treatment centers where special instruction or 
 41.11  services required by sections 120.17 and 120.1701 are provided, 
 41.12  within or outside the district where services are provided, and 
 41.13  necessary transportation for resident pupils with a disability 
 41.14  required by sections 120.17, subdivision 4a, and 120.1701.  
 41.15  Transportation of pupils with a disability between home or a 
 41.16  respite care facility and school shall not be subject to any 
 41.17  distance requirement for children. 
 41.18     Sec. 9.  Minnesota Statutes 1995 Supplement, section 
 41.19  124.225, subdivision 8l, is amended to read: 
 41.20     Subd. 8l.  [ALTERNATIVE ATTENDANCE PROGRAMS.] A district 
 41.21  that enrolls nonresident pupils in programs under sections 
 41.22  120.062, 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 
 41.23  126.22, may shall provide authorized transportation to the pupil 
 41.24  within the attendance area for the school that the pupil 
 41.25  attends.  The resident district need not provide or pay for 
 41.26  transportation between the pupil's residence and the district's 
 41.27  border. 
 41.28     Sec. 10.  Minnesota Statutes 1995 Supplement, section 
 41.29  124.225, subdivision 14, is amended to read: 
 41.30     Subd. 14.  [SPECIAL PROGRAMS TRANSPORTATION REVENUE.] A 
 41.31  district's special programs transportation revenue for the 
 41.32  1996-1997 and later school years equals the sum of: 
 41.33     (a) the district's actual cost in the base year for 
 41.34  transportation services for children with disabilities under 
 41.35  section 124.223, subdivisions 4, 5, 7, and 8, times the ratio of 
 41.36  the district's average daily membership for the current school 
 42.1   year to the district's average daily membership for the base 
 42.2   year; plus 
 42.3      (b) the greater of zero or 80 percent of the difference 
 42.4   between: 
 42.5      (1) the district's actual cost in the current year for 
 42.6   transportation services for children with disabilities under 
 42.7   section 124.223, subdivisions 4, 5, 7, and 8; and 
 42.8      (2) the amount computed in paragraph (a). 
 42.9      Sec. 11.  Minnesota Statutes 1995 Supplement, section 
 42.10  124.225, subdivision 16, is amended to read: 
 42.11     Subd. 16.  [NONPUBLIC PUPIL TRANSPORTATION REVENUE.] (a) A 
 42.12  district's nonpublic pupil transportation revenue for the 
 42.13  1996-1997 and later school years for transportation services for 
 42.14  nonpublic school pupils according to sections 123.39, 123.76 to 
 42.15  123.78, 124.223, and 124.226, equals the sum of the amounts 
 42.16  computed in paragraphs (b) and (c).  This revenue does not limit 
 42.17  the obligation to transport pupils under sections 123.76 to 
 42.18  123.79. 
 42.19     (b) For regular and excess transportation according to 
 42.20  section 124.225, subdivision 1, paragraph (c), clauses (1) and 
 42.21  (3), an amount equal to the product of: 
 42.22     (1) the district's actual expenditure per pupil transported 
 42.23  in the regular and excess transportation categories during the 
 42.24  second preceding school year; times 
 42.25     (2) the number of nonpublic school pupils residing in the 
 42.26  district who receive regular or excess transportation service or 
 42.27  reimbursement for the current school year; times 
 42.28     (3) the ratio of the formula allowance pursuant to section 
 42.29  124A.22, subdivision 2, for the current school year to the 
 42.30  formula allowance pursuant to section 124A.22, subdivision 2, 
 42.31  for the second preceding school year. 
 42.32     (c) For nonregular transportation according to section 
 42.33  124.225, subdivision 1, paragraph (c), clause (2), excluding 
 42.34  transportation services for children with disabilities under 
 42.35  section 124.223, subdivisions 4, 5, 7, and 8, and late activity 
 42.36  transportation according to section 124.226, subdivision 9, an 
 43.1   amount equal to the product of: 
 43.2      (1) the district's actual expenditure for nonregular and 
 43.3   late activity transportation for nonpublic school pupils during 
 43.4   the second preceding school year; times 
 43.5      (2) the ratio of the formula allowance pursuant to section 
 43.6   124A.22, subdivision 2, for the current school year to the 
 43.7   formula allowance pursuant to section 124A.22, subdivision 2, 
 43.8   for the second preceding school year. 
 43.9      (d) Notwithstanding the amount of the formula allowance for 
 43.10  fiscal years 1997 and 1998 in section 124A.22, subdivision 2, 
 43.11  the commissioner shall use the amount of the formula allowance 
 43.12  less $300 in determining the nonpublic pupil transportation 
 43.13  revenue in paragraphs (b) and (c) for fiscal years 1997 and 1998.
 43.14     Sec. 12.  Minnesota Statutes 1995 Supplement, section 
 43.15  124.225, subdivision 17, is amended to read: 
 43.16     Subd. 17.  [TARGETED NEEDS TRANSPORTATION AID.] (a) A 
 43.17  district's targeted needs transportation aid is the difference 
 43.18  between its targeted needs transportation revenue under 
 43.19  subdivision 13 and its targeted needs transportation revenue 
 43.20  levy under section 124.226, subdivision 10. 
 43.21     (b) If a district does not levy the entire amount 
 43.22  permitted, aid must be reduced in proportion to the actual 
 43.23  amount levied. 
 43.24     Sec. 13.  Minnesota Statutes 1995 Supplement, section 
 43.25  124.227, is amended to read: 
 43.26     124.227 [INTERDISTRICT DESEGREGATION OR INTEGRATION 
 43.27  TRANSPORTATION GRANTS.] 
 43.28     (a) A district that provides transportation of pupils 
 43.29  between resident and nonresident districts to and from an 
 43.30  interdistrict program for desegregation or integration purposes 
 43.31  may apply to the commissioner of children, families, and 
 43.32  learning for a grant to cover the additional costs of 
 43.33  transportation.  
 43.34     (b) A district in the metropolitan area may apply to the 
 43.35  commissioner for a grant to cover the costs of transporting 
 43.36  pupils who are enrolled under section 120.062 if the enrollment 
 44.1   of the student in the nonresident district contributes to 
 44.2   desegregation or integration purposes.  The commissioner must 
 44.3   develop the form and manner of applications, the criteria to be 
 44.4   used to determine when transportation is for desegregation or 
 44.5   integration purposes, and the accounting procedure to be used to 
 44.6   determine excess costs.  In determining the grant amount, the 
 44.7   commissioner must consider other revenue received by the 
 44.8   district for transportation for desegregation or integration 
 44.9   purposes. 
 44.10     (c) Grants may be awarded under paragraph (b) only if 
 44.11  grants awarded under paragraph (a) have been fully funded. 
 44.12     Sec. 14.  Minnesota Statutes 1995 Supplement, section 
 44.13  169.01, subdivision 6, is amended to read: 
 44.14     Subd. 6.  [SCHOOL BUS.] "School bus" means a motor vehicle 
 44.15  used to transport pupils to or from a school defined in section 
 44.16  120.101, or to or from school-related activities, by the school 
 44.17  or a school district, or by someone under an agreement with the 
 44.18  school or a school district.  A school bus does not include a 
 44.19  motor vehicle transporting children to or from school for which 
 44.20  parents or guardians receive direct compensation from a school 
 44.21  district, a motor coach operating under charter carrier 
 44.22  authority, a transit bus providing services as defined in 
 44.23  section 174.22, subdivision 7, or a vehicle otherwise qualifying 
 44.24  as a type III vehicle under paragraph (5), when the vehicle is 
 44.25  properly registered and insured and being driven by an employee 
 44.26  or agent of a school district for nonscheduled transportation.  
 44.27  A school bus may be type A, type B, type C, or type D, or type 
 44.28  III as follows:  
 44.29     (1) A "type A school bus" is a conversion or body 
 44.30  constructed upon a van-type compact truck or a front-section 
 44.31  vehicle, with a gross vehicle weight rating of 10,000 pounds or 
 44.32  less, designed for carrying more than ten persons. 
 44.33     (2) A "type B school bus" is a conversion or body 
 44.34  constructed and installed upon a van or front-section vehicle 
 44.35  chassis, or stripped chassis, with a gross vehicle weight rating 
 44.36  of more than 10,000 pounds, designed for carrying more than ten 
 45.1   persons.  Part of the engine is beneath or behind the windshield 
 45.2   and beside the driver's seat.  The entrance door is behind the 
 45.3   front wheels. 
 45.4      (3) A "type C school bus" is a body installed upon a flat 
 45.5   back cowl chassis with a gross vehicle weight rating of more 
 45.6   than 10,000 pounds, designated designed for carrying more than 
 45.7   ten persons.  All of the engine is in front of the windshield 
 45.8   and the entrance door is behind the front wheels. 
 45.9      (4) A "type D school bus" is a body installed upon a 
 45.10  chassis, with the engine mounted in the front, midship or rear, 
 45.11  with a gross vehicle weight rating of more than 10,000 pounds, 
 45.12  designed for carrying more than ten persons.  The engine may be 
 45.13  behind the windshield and beside the driver's seat; it may be at 
 45.14  the rear of the bus, behind the rear wheels, or midship between 
 45.15  the front and rear axles.  The entrance door is ahead of the 
 45.16  front wheels. 
 45.17     (5) Type III school buses and type III Head Start buses are 
 45.18  restricted to passenger cars, station wagons, vans, and buses 
 45.19  having a maximum manufacturer's rated seating capacity of ten 
 45.20  people, including the driver, and a gross vehicle weight rating 
 45.21  of 10,000 pounds or less.  In this subdivision, "gross vehicle 
 45.22  weight rating" means the value specified by the manufacturer as 
 45.23  the loaded weight of a single vehicle.  A "type III school bus" 
 45.24  and "type III Head Start bus" must not be outwardly equipped and 
 45.25  identified as a type A, B, C, or D school bus or type A, B, C, 
 45.26  or D Head Start bus. 
 45.27     Sec. 15.  Minnesota Statutes 1994, section 169.4504, is 
 45.28  amended by adding a subdivision to read: 
 45.29     Subd. 5.  [AISLE WIDTH.] All school buses equipped with a 
 45.30  power lift shall provide at least a 12-inch aisle leading from 
 45.31  wheelchair position to at least one emergency door and the lift 
 45.32  area. 
 45.33     Sec. 16.  Minnesota Statutes 1995 Supplement, section 
 45.34  631.40, subdivision 1a, is amended to read: 
 45.35     Subd. 1a.  [CERTIFIED COPY OF DISQUALIFYING OFFENSE 
 45.36  CONVICTIONS SENT TO PUBLIC SAFETY AND SCHOOL DISTRICTS.] When a 
 46.1   person is convicted of committing a disqualifying offense, as 
 46.2   defined in section 171.3215, subdivision 1, a gross misdemeanor, 
 46.3   a fourth moving violation within a three-year period the 
 46.4   previous three years, or a violation of section 169.121 or 
 46.5   169.129, or a similar statute or ordinance from another state, 
 46.6   the court shall determine whether the offender is a school bus 
 46.7   driver as defined in section 171.3215, subdivision 1, whether 
 46.8   the offender possesses a school bus driver's endorsement on the 
 46.9   offender's driver's license and in what school districts the 
 46.10  offender drives a school bus.  If the offender is a school bus 
 46.11  driver or possesses a school bus driver's endorsement, the court 
 46.12  administrator shall send a certified copy of the conviction to 
 46.13  the department of public safety and to the school districts in 
 46.14  which the offender drives a school bus within ten days after the 
 46.15  conviction. 
 46.16     Sec. 17.  Laws 1995, First Special Session chapter 3, 
 46.17  article 2, section 53, is amended to read: 
 46.18     Sec. 53.  [EFFECTIVE DATE.] 
 46.19     Sections 6 to 9 and 29 to 49 are effective the day 
 46.20  following final enactment. 
 46.21     Section 12 is effective beginning with taxes payable in 
 46.22  1996 for fiscal year 1997. 
 46.23     Sec. 18.  [APPROPRIATION.] 
 46.24     $150,000 is appropriated to the St. Paul school district to 
 46.25  contract with the Metropolitan Council Transit Organization for 
 46.26  a one-year pilot program during the 1996-1997 school year to 
 46.27  transport students to and from Arlington High School.  The MCTO 
 46.28  and the St. Paul school district shall submit a joint 
 46.29  preliminary report by March 1, 1997, to the chairs of the 
 46.30  education committees of the senate and the house of 
 46.31  representatives, the chair of the metropolitan and local 
 46.32  government committee of the senate, and the chair of the local 
 46.33  government and metropolitan affairs committee of the house of 
 46.34  representatives.  The MCTO may not charge the district any more 
 46.35  than $150,000 for the school year. 
 46.36     Sec. 19.  [EFFECTIVE DATE.] 
 47.1      Sections 8 to 13 are effective the day following final 
 47.2   enactment. 
 47.3                              ARTICLE 3 
 47.4                           SPECIAL PROGRAMS 
 47.5      Section 1.  Minnesota Statutes 1995 Supplement, section 
 47.6   120.17, subdivision 3a, is amended to read: 
 47.7      Subd. 3a.  [SCHOOL DISTRICT OBLIGATIONS.] Every district 
 47.8   shall ensure that: 
 47.9      (1) all students with disabilities are provided the special 
 47.10  instruction and services which are appropriate to their needs.  
 47.11  Where the individual education plan team has determined 
 47.12  appropriate goals and objectives based on the student's needs, 
 47.13  including the extent to which the student can be included in the 
 47.14  least restrictive environment, and where there are essentially 
 47.15  equivalent and effective instruction, related services, or 
 47.16  assistive technology devices available to meet the student's 
 47.17  needs, cost to the school district may be among the factors 
 47.18  considered by the team in choosing how to provide the 
 47.19  appropriate services, instruction, or devices that are to be 
 47.20  made part of the student's individual education plan.  The 
 47.21  student's needs and the special education instruction and 
 47.22  services to be provided shall be agreed upon through the 
 47.23  development of an individual education plan.  The plan shall 
 47.24  address the student's need to develop skills to live and work as 
 47.25  independently as possible within the community.  By grade 9 or 
 47.26  age 14, the plan shall address the student's needs for 
 47.27  transition from secondary services to post-secondary education 
 47.28  and training, employment, community participation, recreation, 
 47.29  and leisure and home living.  The plan must include a statement 
 47.30  of the needed transition services, including a statement of the 
 47.31  interagency responsibilities or linkages or both before 
 47.32  secondary services are concluded; 
 47.33     (2) children with a disability under age five and their 
 47.34  families are provided special instruction and services 
 47.35  appropriate to the child's level of functioning and needs; 
 47.36     (3) children with a disability and their parents or 
 48.1   guardians are guaranteed procedural safeguards and the right to 
 48.2   participate in decisions involving identification, assessment 
 48.3   including assistive technology assessment, and educational 
 48.4   placement of children with a disability; 
 48.5      (4) to the maximum extent appropriate, children with a 
 48.6   disability, including those in public or private institutions or 
 48.7   other care facilities, are educated with children who are not 
 48.8   disabled, and that special classes, separate schooling, or other 
 48.9   removal of children with a disability from the regular 
 48.10  educational environment occurs only when and to the extent that 
 48.11  the nature or severity of the disability is such that education 
 48.12  in regular classes with the use of supplementary services cannot 
 48.13  be achieved satisfactorily; 
 48.14     (5) in accordance with recognized professional standards, 
 48.15  testing and evaluation materials, and procedures utilized for 
 48.16  the purposes of classification and placement of children with a 
 48.17  disability are selected and administered so as not to be 
 48.18  racially or culturally discriminatory; and 
 48.19     (6) the rights of the child are protected when the parents 
 48.20  or guardians are not known or not available, or the child is a 
 48.21  ward of the state. 
 48.22     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
 48.23  120.17, subdivision 3b, is amended to read: 
 48.24     Subd. 3b.  [PROCEDURES FOR DECISIONS.] Every district shall 
 48.25  utilize at least the following procedures for decisions 
 48.26  involving identification, assessment, and educational placement 
 48.27  of children with a disability: 
 48.28     (a) Parents and guardians shall receive prior written 
 48.29  notice of:  
 48.30     (1) any proposed formal educational assessment or proposed 
 48.31  denial of a formal educational assessment of their child; 
 48.32     (2) a proposed placement of their child in, transfer from 
 48.33  or to, or denial of placement in a special education program; or 
 48.34     (3) the proposed provision, addition, denial or removal of 
 48.35  special education services for their child; 
 48.36     (b) The district shall not proceed with the initial formal 
 49.1   assessment of a child, the initial placement of a child in a 
 49.2   special education program, or the initial provision of special 
 49.3   education services for a child without the prior written consent 
 49.4   of the child's parent or guardian.  The refusal of a parent or 
 49.5   guardian to consent may be overridden by the decision in a 
 49.6   hearing held pursuant to clause (e) at the district's 
 49.7   initiative; 
 49.8      (c) Parents and guardians shall have an opportunity to meet 
 49.9   with appropriate district staff in at least one conciliation 
 49.10  conference, mediation, or other method of alternative dispute 
 49.11  resolution that the parties agree to, if they object to any 
 49.12  proposal of which they are notified pursuant to clause (a).  The 
 49.13  conciliation process or other form of alternative dispute 
 49.14  resolution shall not be used to deny or delay a parent or 
 49.15  guardian's right to a due process hearing.  If the parent or 
 49.16  guardian refuses efforts by the district to conciliate the 
 49.17  dispute with the school district, the requirement of an 
 49.18  opportunity for conciliation or other alternative dispute 
 49.19  resolution shall be deemed to be satisfied.  Notwithstanding 
 49.20  other law, in any proceeding following a conciliation 
 49.21  conference, the school district must not offer a conciliation 
 49.22  conference memorandum into evidence, except for any portions 
 49.23  that describe the district's final proposed offer of service.  
 49.24  Otherwise, with respect to forms of dispute resolution, 
 49.25  mediation, or conciliation, Minnesota Rule of Evidence 408 
 49.26  applies.  The department of children, families, and learning may 
 49.27  reimburse the districts or directly pay the costs of lay 
 49.28  advocates, not to exceed $150 per dispute, used in conjunction 
 49.29  with alternative dispute resolution. 
 49.30     (d) The commissioner shall establish a mediation process to 
 49.31  assist parents, school districts, or other parties to resolve 
 49.32  disputes arising out of the identification, assessment, or 
 49.33  educational placement of children with a disability.  The 
 49.34  mediation process must be offered as an informal alternative to 
 49.35  the due process hearing provided under clause (e), but must not 
 49.36  be used to deny or postpone the opportunity of a parent or 
 50.1   guardian to obtain a due process hearing. 
 50.2      (e) Parents, guardians, and the district shall have an 
 50.3   opportunity to obtain an impartial due process hearing initiated 
 50.4   and conducted by and in the school district responsible for 
 50.5   assuring that an appropriate program is provided in accordance 
 50.6   with state board rules, if the parent or guardian continues to 
 50.7   object to:  
 50.8      (1) a proposed formal educational assessment or proposed 
 50.9   denial of a formal educational assessment of their child; 
 50.10     (2) the proposed placement of their child in, or transfer 
 50.11  of their child to a special education program; 
 50.12     (3) the proposed denial of placement of their child in a 
 50.13  special education program or the transfer of their child from a 
 50.14  special education program; 
 50.15     (4) the proposed provision or addition of special education 
 50.16  services for their child; or 
 50.17     (5) the proposed denial or removal of special education 
 50.18  services for their child. 
 50.19     Within five business days after the request for a hearing, 
 50.20  or as directed by the hearing officer, the objecting party shall 
 50.21  provide the other party with a brief written statement of 
 50.22  particulars of the objection, the reasons for the objection, and 
 50.23  the specific remedies sought.  The other party shall provide the 
 50.24  objecting party with a written response to the statement of 
 50.25  objections within five business days of receipt of the statement.
 50.26     The hearing shall take place before an impartial hearing 
 50.27  officer mutually agreed to by the school board and the parent or 
 50.28  guardian.  If the school board and the parent or guardian are 
 50.29  unable to agree on a Within four business days of the receipt of 
 50.30  the request for the hearing, if the parties have not agreed on 
 50.31  the hearing officer, the school board shall request the 
 50.32  commissioner to appoint a hearing officer.  The school board 
 50.33  shall include with request the name of the person requesting the 
 50.34  hearing, the name of the student, the attorneys involved, if 
 50.35  any, and the date the hearing request was received.  The hearing 
 50.36  officer shall not be a school board member or employee of the 
 51.1   school district where the child resides or of the child's school 
 51.2   district of residence, an employee of any other public agency 
 51.3   involved in the education or care of the child, or any person 
 51.4   with a personal or professional interest which would conflict 
 51.5   with the person's objectivity at the hearing.  A person who 
 51.6   otherwise qualifies as a hearing officer is not an employee of 
 51.7   the district solely because the person is paid by the district 
 51.8   to serve as a hearing officer.  If the hearing officer requests 
 51.9   an independent educational assessment of a child, the cost of 
 51.10  the assessment shall be at district expense.  The proceedings 
 51.11  shall be recorded and preserved, at the expense of the school 
 51.12  district, pending ultimate disposition of the action. 
 51.13     (f) The decision of the hearing officer pursuant to clause 
 51.14  (e) shall be rendered not more than 45 calendar days from the 
 51.15  date of the receipt of the request for the hearing, except that 
 51.16  hearing officers are encouraged to accelerate the timeline to 30 
 51.17  days for children birth through two whose needs change rapidly 
 51.18  and require quick resolution of complaints.  A hearing officer 
 51.19  may not grant specific extensions of time beyond the 45-day 
 51.20  period at the request of either party unless requested by either 
 51.21  party for good cause shown on the record.  The decision of the 
 51.22  hearing officer shall be binding on all parties unless appealed 
 51.23  to the hearing review officer commissioner by the parent,; 
 51.24  guardian, or the; school board of the district where the child 
 51.25  resides pursuant to clause (g); and also in the case of children 
 51.26  birth through two, by the county board. 
 51.27     The local decision shall: 
 51.28     (1) be in writing; 
 51.29     (2) state the controlling facts upon which the decision is 
 51.30  made in sufficient detail to apprise the parties and the hearing 
 51.31  review officer of the basis and reason for the decision; and 
 51.32     (3) state whether the special education program or special 
 51.33  education services appropriate to the child's needs can be 
 51.34  reasonably provided within the resources available to the 
 51.35  responsible district or districts; 
 51.36     (4) state the amount and source of any additional district 
 52.1   expenditure necessary to implement the decision; and 
 52.2      (5) be based on the standards set forth in subdivision 3a 
 52.3   and the rules of the state board. 
 52.4      (g) Any local decision issued pursuant to clauses (e) and 
 52.5   (f) may be appealed to the hearing review officer commissioner 
 52.6   within 30 calendar days of receipt of that written decision, by 
 52.7   the parent, guardian, or the school board of the district 
 52.8   responsible for assuring that an appropriate program is provided 
 52.9   in accordance with state board rules.  The appealing party shall 
 52.10  note the specific parts of the hearing decision being appealed. 
 52.11     If the decision is appealed, a written transcript of the 
 52.12  hearing shall be made by the school district and shall be 
 52.13  accessible provided by the district to the parties involved and 
 52.14  the hearing review officer within five calendar days of the 
 52.15  filing of the appeal.  The hearing review officer shall conduct 
 52.16  an appellate review and issue a final independent decision based 
 52.17  on an impartial review of the local decision and the entire 
 52.18  record within 30 calendar days after the filing of the appeal.  
 52.19  However, the hearing review officer shall seek additional 
 52.20  evidence if necessary and may afford the parties an opportunity 
 52.21  for written or oral argument; provided any hearing held to seek 
 52.22  additional evidence shall be an impartial due process hearing 
 52.23  but shall be deemed not to be a contested case hearing for 
 52.24  purposes of chapter 14.  The hearing review officer may grant 
 52.25  specific extensions of time beyond the 30-day period at the 
 52.26  request of any party for good cause shown on the record. 
 52.27     The final decision shall: 
 52.28     (1) be in writing; 
 52.29     (2) include findings and conclusions; and 
 52.30     (3) be based upon the standards set forth in subdivision 3a 
 52.31  and in the rules of the state board. 
 52.32     (h) The decision of the hearing review officer shall be 
 52.33  final unless appealed by the parent or guardian or school board 
 52.34  to the Minnesota court of appeals or federal district court as 
 52.35  provided by federal law.  The State judicial review shall be in 
 52.36  accordance with chapter 14.  
 53.1      (i) The commissioner of children, families, and learning 
 53.2   shall select an individual who has the qualifications enumerated 
 53.3   in this paragraph to serve as the hearing review officer: 
 53.4      (1) the individual must be knowledgeable and impartial; 
 53.5      (2) the individual must not have a personal interest in or 
 53.6   specific involvement with the student who is a party to the 
 53.7   hearing; 
 53.8      (3) the individual must not have been employed as an 
 53.9   administrator by the district that is a party to the hearing; 
 53.10     (4) the individual must not have been involved in the 
 53.11  selection of the administrators of the district that is a party 
 53.12  to the hearing; 
 53.13     (5) the individual must not have a personal, economic, or 
 53.14  professional interest in the outcome of the hearing other than 
 53.15  the proper administration of the federal and state laws, rules, 
 53.16  and policies; 
 53.17     (6) the individual must not have substantial involvement in 
 53.18  the development of a state or local policy or procedures that 
 53.19  are challenged in the appeal; and 
 53.20     (7) the individual is not a current employee or board 
 53.21  member of a Minnesota public school district, education 
 53.22  district, intermediate unit or regional education agency, the 
 53.23  department of children, families, and learning, the state board 
 53.24  of education, or a parent advocacy organization or group; and 
 53.25     (8) the individual is not a current employee or board 
 53.26  member of a disability advocacy organization or group.  
 53.27     (j) In all appeals, the parent or guardian of the pupil 
 53.28  with a disability or the district that is a party to the hearing 
 53.29  may challenge the impartiality or competence of the proposed 
 53.30  hearing review officer by applying to the hearing review officer.
 53.31     (k) Pending the completion of proceedings pursuant to this 
 53.32  subdivision, unless the district and the parent or guardian of 
 53.33  the child agree otherwise, the child shall remain in the child's 
 53.34  current educational placement and shall not be denied initial 
 53.35  admission to school. 
 53.36     (l) The child's school district of residence, a resident 
 54.1   district, and providing district shall receive notice of and may 
 54.2   be a party to any hearings or appeals under this subdivision. 
 54.3      (m) A school district is not liable for harmless technical 
 54.4   violations of this subdivision or rules implementing this 
 54.5   subdivision if the school district can demonstrate on a 
 54.6   case-by-case basis that the violations did not harm the 
 54.7   student's educational progress or the parent or guardian's right 
 54.8   to notice, participation, or due process. 
 54.9      (n) Within ten calendar days after appointment, the hearing 
 54.10  officer shall schedule and hold a prehearing conference.  At 
 54.11  that conference, or later, the hearing officer may take any 
 54.12  appropriate action that a court might take under Rule 16 of 
 54.13  Minnesota Rules of Civil Procedure including, but not limited 
 54.14  to, scheduling, jurisdiction, and listing witnesses including 
 54.15  expert witnesses. 
 54.16     (o) A hearing officer or hearing review officer appointed 
 54.17  under this subdivision shall be deemed to be an employee of the 
 54.18  state under section 3.732 for the purposes of section 3.736 only.
 54.19     (p) In order to be eligible for selection, hearing officers 
 54.20  and hearing review officers shall participate in training and 
 54.21  follow procedures as designated by the commissioner. 
 54.22     (q) The hearing officer may admit all evidence which 
 54.23  possesses probative value, including hearsay, if it is the type 
 54.24  of evidence on which reasonable, prudent persons are accustomed 
 54.25  to rely in the conduct of their serious affairs.  The hearing 
 54.26  officer shall give effect to the rules of privilege recognized 
 54.27  by law.  Evidence which is incompetent, irrelevant, immaterial, 
 54.28  or unduly repetitious shall be excluded. 
 54.29     Sec. 3.  Minnesota Statutes 1994, section 120.17, is 
 54.30  amended by adding a subdivision to read: 
 54.31     Subd. 19.  [PARENT ADVISORY COMMITTEES.] Provisions of 
 54.32  Minnesota Rules, part 3525.1100, regarding parent advisory 
 54.33  committees shall apply to local school boards or cooperative 
 54.34  boards carrying out the provisions of Minnesota Statutes, 
 54.35  section 120.17. 
 54.36     Sec. 4.  Minnesota Statutes 1994, section 120.1701, 
 55.1   subdivision 10, is amended to read: 
 55.2      Subd. 10.  [PAYMENT FOR SERVICES.] Core early intervention 
 55.3   services shall be provided at public expense with no cost to 
 55.4   parents.  Parents shall be requested to assist in the cost of 
 55.5   additional early intervention services by using third-party 
 55.6   payment sources and applying for available resources.  If a 
 55.7   parent chooses not to access these resources, additional early 
 55.8   intervention services may not be provided.  Payment structures 
 55.9   permitted under state law shall be used to pay for additional 
 55.10  early intervention services.  Parental financial responsibility 
 55.11  shall be clearly defined in the individualized family service 
 55.12  plan.  A parent's inability to pay shall not prohibit a child 
 55.13  from receiving needed early intervention services. 
 55.14     Sec. 5.  Minnesota Statutes 1995 Supplement, section 
 55.15  120.1701, subdivision 20, is amended to read: 
 55.16     Subd. 20.  [DUE PROCESS HEARINGS.] By July 1, 1994, the 
 55.17  departments of children, families, and learning, health, and 
 55.18  human services shall develop procedures for hearings.  The 
 55.19  procedures for due process hearings and appeals shall be the 
 55.20  same as those in section 120.17, subdivision 3b.  The 
 55.21  responsibility for payment of costs and conducting due process 
 55.22  hearings and appeals shall be allocated to the appropriate 
 55.23  agency in accordance with section 120.1701, subdivisions 5, 13, 
 55.24  and 16.  
 55.25     Sec. 6.  [120.187] [DEFINITION.] 
 55.26     Subdivision 1.  [APPLICABILITY.] For the purposes of 
 55.27  sections 120.187 to 120.190, the following terms have the 
 55.28  meanings given them. 
 55.29     Subd. 2.  [ASSISTIVE TECHNOLOGY DEVICE.] "Assistive 
 55.30  technology device" means any item, piece of equipment, software, 
 55.31  or product system, whether acquired commercially off the shelf, 
 55.32  modified, or customized, that is used to increase, maintain, or 
 55.33  improve functional capabilities of children with disabilities. 
 55.34     Sec. 7.  [120.188] [PURCHASING GUIDELINES.] 
 55.35     Subdivision 1.  [RIGHTS OF SCHOOL DISTRICTS TO PURCHASE 
 55.36  SCHOOL-OWNED ASSISTIVE TECHNOLOGY.] (a) When a child with a 
 56.1   disability exits a school district and enters a new school 
 56.2   district, the child's new school district may purchase any 
 56.3   assistive technology devices that the child's former school 
 56.4   district has purchased on the child's behalf.  The child's new 
 56.5   school district must notify, in writing, the child's former 
 56.6   school district of the intent to purchase the device.  The 
 56.7   child's new school district must complete a purchase agreement 
 56.8   according to section 4.  The child's former school district must 
 56.9   respond, in writing, to the request to purchase within 30 days.  
 56.10     (b) School districts may decline to sell a device if they 
 56.11  can demonstrate the technology is a general use device or can be 
 56.12  modified for use by other students. 
 56.13     Subd. 2.  [LIABILITY FOR USED EQUIPMENT.] The child's 
 56.14  former school district shall not be liable for any 
 56.15  nonconformities in the equipment after it is purchased by the 
 56.16  child's new school district, or for injuries arising out of the 
 56.17  use of the assistive technology device.  This section does not 
 56.18  foreclose the child's right to bring suit against the 
 56.19  manufacturer, assistive device lessor, or assistive device 
 56.20  dealer for nonconformities in or injuries arising out of the use 
 56.21  of the assistive technology device. 
 56.22     Subd. 3.  [THIRD-PARTY PAYORS.] Nothing contained in this 
 56.23  section shall be construed as decreasing the obligation of an 
 56.24  insurance company or other third-party payor to provide coverage 
 56.25  for assistive technology. 
 56.26     Sec. 8.  [120.189] [INTERAGENCY AGREEMENT TO PURCHASE USED 
 56.27  ASSISTIVE TECHNOLOGY DEVICES.] 
 56.28     Subdivision 1.  [OPTION TO PURCHASE BY DEPARTMENT OF 
 56.29  ECONOMIC SECURITY.] (a) When a child with a disability 
 56.30  transitions into a work environment or enrolls in a 
 56.31  post-secondary course or program, the department of economic 
 56.32  security may purchase any assistive technology device that the 
 56.33  child's former school district purchased on the child's behalf. 
 56.34     (b) The department of economic security may purchase an 
 56.35  assistive technology device initially purchased by a school 
 56.36  district for a child who is currently a recipient of 
 57.1   rehabilitation services and who needs the identical assistive 
 57.2   technology device as stated on the recipient's individual 
 57.3   written rehabilitation plan.  The purchase may be made not more 
 57.4   than three months prior to the child exiting the school district.
 57.5      Subd. 2.  [LIABILITY FOR USED EQUIPMENT.] The department of 
 57.6   economic security and the department of children, families, and 
 57.7   learning shall not be liable for any nonconformities in the 
 57.8   equipment after it is purchased by the department of economic 
 57.9   security, or for injuries arising out of the use of the 
 57.10  assistive technology device.  This section does not foreclose 
 57.11  the child's right to bring suit against the manufacturer, 
 57.12  assistive device lessor, or assistive device dealer for 
 57.13  nonconformities in or injuries arising out of the use of the 
 57.14  assistive technology device. 
 57.15     Subd. 3.  [THIRD-PARTY PAYOR.] Nothing contained in this 
 57.16  section shall be construed as decreasing the obligation of an 
 57.17  insurance company or other third-party payor to provide coverage 
 57.18  for assistive technology. 
 57.19     Sec. 9.  [120.190] [PURCHASE AGREEMENT; PRICE FORMULA.] 
 57.20     The commissioner shall develop guidelines for the sale of 
 57.21  used assistive technology including a purchase agreement, a 
 57.22  formula for establishing the sale price, and other terms and 
 57.23  conditions of the sale. 
 57.24     Sec. 10.  Minnesota Statutes 1994, section 123.35, is 
 57.25  amended by adding a subdivision to read: 
 57.26     Subd. 9b.  [SERVICES FOR INDIAN STUDENTS.] School districts 
 57.27  may enter into agreements with Indian tribal governments for 
 57.28  purposes of providing educational services for students.  Such 
 57.29  agreements may allow for the use of any resources available to 
 57.30  either party and must give students the option to enroll in the 
 57.31  school district at their election. 
 57.32     Sec. 11.  Minnesota Statutes 1995 Supplement, section 
 57.33  124.273, subdivision 1c, is amended to read: 
 57.34     Subd. 1c.  [ADJUSTED LEP BASE REVENUE.] (a) A district's 
 57.35  adjusted limited English proficiency programs base revenue for 
 57.36  fiscal year 1996 and later equals the product of: 
 58.1      (1) the district's base revenue for limited English 
 58.2   proficiency programs under this section and section 124.321, 
 58.3   times 
 58.4      (2) the ratio of: 
 58.5      (i) the greater of 20 or the number of pupils of limited 
 58.6   English proficiency enrolled in the district during the current 
 58.7   fiscal year to 
 58.8      (ii) the greater of 20 or the number of pupils of limited 
 58.9   English proficiency enrolled in the district during fiscal the 
 58.10  base year 1995. 
 58.11     (b) For the purposes of this section, the base year for 
 58.12  fiscal year 1996 is fiscal year 1995.  The base year for later 
 58.13  fiscal years is the second fiscal year preceding the fiscal year 
 58.14  for which aid shall be paid.  The current year is the fiscal 
 58.15  year for which aid shall be paid. 
 58.16     (c) For the purposes of this section, a teacher includes 
 58.17  nonlicensed personnel who provide direct instruction to students 
 58.18  of limited English proficiency under the supervision of a 
 58.19  licensed teacher. 
 58.20     Sec. 12.  Minnesota Statutes 1995 Supplement, section 
 58.21  124.273, subdivision 1d, is amended to read: 
 58.22     Subd. 1d.  [LEP BASE REVENUE.] (a) The limited English 
 58.23  proficiency programs base revenue equals the sum of the 
 58.24  following amounts, computed using fiscal base year 1995 data:  
 58.25     (1) 68 percent of the salaries paid limited English 
 58.26  proficiency program teachers salary of one full-time equivalent 
 58.27  teacher for each 40 pupils of limited English proficiency 
 58.28  enrolled, or 68 percent of the salary of one-half of a full-time 
 58.29  teacher in a district with 20 or fewer pupils of limited English 
 58.30  proficiency enrolled; and 
 58.31     (2) for supplies and equipment purchased or rented for use 
 58.32  in the instruction of pupils of limited English proficiency an 
 58.33  amount equal to 47 percent of the sum actually spent by the 
 58.34  district but not to exceed an average of $47 in any one school 
 58.35  year for each pupil of limited English proficiency receiving 
 58.36  instruction. 
 59.1      (b) For the purposes of this subdivision, a teacher 
 59.2   includes nonlicensed personnel who provide direct instruction to 
 59.3   students of limited English proficiency under the supervision of 
 59.4   a licensed teacher. 
 59.5      Sec. 13.  Minnesota Statutes 1994, section 124.273, is 
 59.6   amended by adding a subdivision to read: 
 59.7      Subd. 1f.  [STATE TOTAL LEP REVENUE.] (a) The state total 
 59.8   limited English proficiency programs revenue for fiscal year 
 59.9   1996 equals $12,202,000.  The state total limited English 
 59.10  proficiency programs revenue for fiscal year 1997 equals 
 59.11  $13,299,000.  
 59.12     (b) The state total limited English proficiency programs 
 59.13  revenue for later fiscal years equals: 
 59.14     (1) the state total limited English proficiency programs 
 59.15  revenue for the preceding fiscal year; times 
 59.16     (2) the program growth factor under section 124.3201, 
 59.17  subdivision 1; times 
 59.18     (3) the ratio of the state total number of pupils with 
 59.19  limited English proficiency for the current fiscal year to the 
 59.20  state total number of pupils with limited English proficiency 
 59.21  for the preceding fiscal year. 
 59.22     Sec. 14.  Minnesota Statutes 1994, section 124.273, is 
 59.23  amended by adding a subdivision to read: 
 59.24     Subd. 1g.  [SCHOOL DISTRICT LEP REVENUE.] (a) A school 
 59.25  district's limited English proficiency programs revenue for 
 59.26  fiscal year 1996 and later equals the state total limited 
 59.27  English proficiency programs revenue, minus the amount 
 59.28  determined under paragraph (b), times the ratio of the 
 59.29  district's adjusted limited English proficiency programs base 
 59.30  revenue to the state total adjusted limited English proficiency 
 59.31  programs base revenue. 
 59.32     (b) Notwithstanding paragraph (a), if the limited English 
 59.33  proficiency programs base revenue for a district equals zero, 
 59.34  the limited English proficiency programs revenue equals the sum 
 59.35  of the following amounts, computed using current year data: 
 59.36     (1) 68 percent of the salary of one full-time equivalent 
 60.1   teacher for each 40 pupils of limited English proficiency 
 60.2   enrolled, or 68 percent of the salary of one-half of a full-time 
 60.3   teacher in a district with 20 or fewer pupils of limited English 
 60.4   proficiency enrolled; and 
 60.5      (2) for supplies and equipment purchased or rented for use 
 60.6   in the instruction of pupils of limited English proficiency an 
 60.7   amount equal to 47 percent of the sum actually spent by the 
 60.8   district but not to exceed an average of $47 in any one school 
 60.9   year for each pupil of limited English proficiency receiving 
 60.10  instruction. 
 60.11     Sec. 15.  Minnesota Statutes 1994, section 124.311, 
 60.12  subdivision 1, is amended to read: 
 60.13     Subdivision 1.  [INSTRUCTION IN REGULAR CLASSROOM.] A 
 60.14  school district may receive assurance of mastery revenue to 
 60.15  provide direct instructional services to eligible pupils in the 
 60.16  pupils' regular classroom.  
 60.17     Sec. 16.  Minnesota Statutes 1994, section 124.311, 
 60.18  subdivision 4, is amended to read: 
 60.19     Subd. 4.  [ELIGIBLE SERVICES.] Assurance of mastery revenue 
 60.20  must be used to provide direct instructional services to an 
 60.21  eligible pupil, or group of eligible pupils, under the following 
 60.22  conditions:  
 60.23     (a) Instruction may be provided at one or more grade levels 
 60.24  from kindergarten through grade 8.  If an assessment of pupils' 
 60.25  needs within a district demonstrates that the eligible pupils in 
 60.26  grades kindergarten through 8 are being appropriately served, a 
 60.27  district may serve eligible pupils in grades 9 through 12. 
 60.28     (b) Instruction must be provided in the usual and customary 
 60.29  classroom of the eligible pupil.  
 60.30     (c) Instruction must be provided under the supervision of 
 60.31  the eligible pupil's regular classroom teacher.  Instruction may 
 60.32  be provided by the eligible pupil's classroom teacher, by 
 60.33  another teacher, by a team of teachers, or by an education 
 60.34  assistant or aide.  A special education teacher may provide 
 60.35  instruction, but instruction that is provided under this section 
 60.36  is not eligible for aid under section 124.32.  
 61.1      (d) (c) The instruction that is provided must differ from 
 61.2   the initial instruction the pupil received in the regular 
 61.3   classroom setting.  The instruction may differ by presenting 
 61.4   different curriculum than was initially presented in the regular 
 61.5   classroom, or by presenting the same curriculum:  
 61.6      (1) at a different rate or in a different sequence than it 
 61.7   was initially presented; 
 61.8      (2) using different teaching methods or techniques than 
 61.9   were used initially; or 
 61.10     (3) using different instructional materials than were used 
 61.11  initially. 
 61.12     Sec. 17.  Minnesota Statutes 1994, section 124.311, 
 61.13  subdivision 5, is amended to read: 
 61.14     Subd. 5.  [REVENUE AMOUNT.] Assurance of mastery revenue is 
 61.15  the sum of state and district money.  The sum may equal up to 
 61.16  $45 for fiscal year 1991 and thereafter times the number 
 61.17  of actual fund balance pupil units in kindergarten through grade 
 61.18  8 in the district.  The district shall determine the amount of 
 61.19  money it will provide and the state shall provide an equal 
 61.20  amount of money. 
 61.21     Sec. 18.  Minnesota Statutes 1995 Supplement, section 
 61.22  124.314, subdivision 2, is amended to read: 
 61.23     Subd. 2.  [LEVY.] For fiscal year 1997 1996 and thereafter, 
 61.24  a school district's targeted needs levy equals the sum of its 
 61.25  integration levy under section 124.912, subdivision 2, and that 
 61.26  portion of its special education levy attributed to the limited 
 61.27  English proficiency program. 
 61.28     Sec. 19.  Minnesota Statutes 1995 Supplement, section 
 61.29  124.3201, subdivision 1, is amended to read: 
 61.30     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 61.31  section and sections 124.3202 and 124.321, the definitions in 
 61.32  this subdivision apply. 
 61.33     (a) "Base year" for fiscal year 1996 and fiscal year 1997 
 61.34  means fiscal year 1995 the 1994 summer program and the 1994-1995 
 61.35  school year.  Base year for later fiscal years means the second 
 61.36  fiscal year preceding the fiscal year for which aid will be paid.
 62.1      (b) "Basic revenue" has the meaning given it in section 
 62.2   124A.22, subdivision 2.  For the purposes of computing basic 
 62.3   revenue pursuant to this section, each child with a disability 
 62.4   shall be counted as prescribed in section 124.17, subdivision 1. 
 62.5      (c) "Essential personnel" means teachers, related services, 
 62.6   and support services staff providing direct services to students.
 62.7      (d) "Average daily membership" has the meaning given it in 
 62.8   section 124.17. 
 62.9      (e) "Program growth factor" means 1.00 for fiscal year 1998 
 62.10  and later. 
 62.11     (f) "Aid percentage factor" means 60 percent for fiscal 
 62.12  year 1996, 70 percent for fiscal year 1997, 80 percent for 
 62.13  fiscal year 1998, 90 percent for fiscal year 1999, and 100 
 62.14  percent for fiscal years 2000 and later. 
 62.15     (g) "Levy percentage factor" means 100 minus the aid 
 62.16  percentage factor for that year. 
 62.17     Sec. 20.  Minnesota Statutes 1995 Supplement, section 
 62.18  124.3201, subdivision 2, is amended to read: 
 62.19     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] The special 
 62.20  education base revenue equals the sum of the following amounts 
 62.21  computed using base year data: 
 62.22     (1) 68 percent of the salary of each essential person 
 62.23  employed in the district's program for children with a 
 62.24  disability during the regular school year, whether the person is 
 62.25  employed by one or more districts; 
 62.26     (2) for the Minnesota state academy for the deaf or the 
 62.27  Minnesota state academy for the blind, 68 percent of the salary 
 62.28  of each instructional aide assigned to a child attending the 
 62.29  academy, if that aide is required by the child's individual 
 62.30  education plan; 
 62.31     (3) for special instruction and services provided to any 
 62.32  pupil by contracting with public, private, or voluntary agencies 
 62.33  other than school districts, in place of special instruction and 
 62.34  services provided by the district, 52 percent of the difference 
 62.35  between the amount of the contract and the basic revenue of the 
 62.36  district for that pupil for the fraction of the school day the 
 63.1   pupil receives services under the contract; 
 63.2      (4) for special instruction and services provided to any 
 63.3   pupil by contracting for services with public, private, or 
 63.4   voluntary agencies other than school districts, that are 
 63.5   supplementary to a full educational program provided by the 
 63.6   school district, 52 percent of the amount of the contract for 
 63.7   that pupil; 
 63.8      (5) for supplies and equipment purchased or rented for use 
 63.9   in the instruction of children with a disability an amount equal 
 63.10  to 47 percent of the sum actually expended by the district but 
 63.11  not to exceed an average of $47 in any one school year for each 
 63.12  child with a disability receiving instruction; and 
 63.13     (6) for fiscal years 1997 and later, special education base 
 63.14  revenue shall include amounts under clauses (1) to (5) for 
 63.15  special education summer programs provided during the base year 
 63.16  for that fiscal year. 
 63.17     Sec. 21.  Minnesota Statutes 1995 Supplement, section 
 63.18  124.3201, is amended by adding a subdivision to read: 
 63.19     Subd. 2a.  [SPECIAL EDUCATION TUITION REVENUE.] (a) For 
 63.20  fiscal year 1996 and later, a district's special education 
 63.21  tuition revenue is equal to 50 percent of the difference between 
 63.22  tuition costs in the base year and actual tuition costs for 
 63.23  pupils whose individual education plans require placement in 
 63.24  another district under section 120.17. 
 63.25     (b) For purposes of this section, "tuition costs" means 
 63.26  expenditures for tuition bills as defined in section 124.323, 
 63.27  subdivision 2, paragraph (a), clause (2). 
 63.28     Sec. 22.  Minnesota Statutes 1995 Supplement, section 
 63.29  124.3201, is amended by adding a subdivision to read: 
 63.30     Subd. 2b.  [SPECIAL EDUCATION COURT PLACEMENT REVENUE.] For 
 63.31  fiscal year 1996 and later, a district's special education court 
 63.32  placement revenue is equal to 50 percent of the difference 
 63.33  between expenditures for teachers' salaries, contracted 
 63.34  services, supplies, and equipment eligible for revenues under 
 63.35  sections 124.3201 and 124.3202, in the base year and actual 
 63.36  expenditures for pupils with disabilities who receive services 
 64.1   pursuant to a court order. 
 64.2      Sec. 23.  Minnesota Statutes 1995 Supplement, section 
 64.3   124.3201, subdivision 3, is amended to read: 
 64.4      Subd. 3.  [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For 
 64.5   fiscal year 1996 and later, a district's adjusted special 
 64.6   education base revenue equals the district's special education 
 64.7   base revenue times the ratio of the district's average daily 
 64.8   membership for the current school year to the district's average 
 64.9   daily membership for the base year; plus the district's special 
 64.10  education tuition revenue under subdivision 2a and special 
 64.11  education court placement revenue under subdivision 2b. 
 64.12     Sec. 24.  Minnesota Statutes 1995 Supplement, section 
 64.13  124.3201, subdivision 5, is amended to read: 
 64.14     Subd. 5.  [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] (a) 
 64.15  A school district's special education revenue for fiscal year 
 64.16  1996 and later equals the state total special education revenue, 
 64.17  minus the amount determined under paragraph (b), times the ratio 
 64.18  of the district's adjusted special education base revenue to the 
 64.19  state total adjusted special education base revenue.  If the 
 64.20  state board of education modifies its rules for special 
 64.21  education in a manner that increases a school district's special 
 64.22  education obligations or service requirements, the commissioner 
 64.23  of children, families, and learning shall annually increase each 
 64.24  district's special education revenue by the amount necessary to 
 64.25  compensate for the increased service requirements.  The 
 64.26  additional revenue equals the cost in the current year 
 64.27  attributable to rule changes not reflected in the computation of 
 64.28  special education base revenue, multiplied by the appropriate 
 64.29  percentages from subdivision 2. 
 64.30     (b) Notwithstanding paragraph (a), if the special education 
 64.31  base revenue for a district equals zero, the special education 
 64.32  revenue equals the amount computed according to subdivision 2 
 64.33  using current year data.  
 64.34     Sec. 25.  Minnesota Statutes 1995 Supplement, section 
 64.35  124.3202, is amended to read: 
 64.36     124.3202 [SPECIAL EDUCATION SUMMER PROGRAM REVENUE.] 
 65.1      Subdivision 1.  [SUMMER PROGRAM BASE REVENUE.] The summer 
 65.2   program base revenue for fiscal year 1996 and fiscal year 1997 
 65.3   equals the sum of the following amounts computed using base year 
 65.4   data: 
 65.5      (1) 68 percent of the summer program salary of each 
 65.6   essential person employed in the district's program for children 
 65.7   with a disability, whether the person is employed by one or more 
 65.8   districts; 
 65.9      (2) for the Minnesota state academy for the deaf or the 
 65.10  Minnesota state academy for the blind, 68 percent of the summer 
 65.11  program salary of each instructional aide assigned to a child 
 65.12  attending the academy, if that aide is required by the child's 
 65.13  individual education plan; 
 65.14     (3) for special instruction and services provided to any 
 65.15  pupil by contracting with public, private, or voluntary agencies 
 65.16  other than school districts, in place of special instruction and 
 65.17  services provided by the district, 52 percent of the difference 
 65.18  between the amount of the contract for the summer program and 
 65.19  the basic revenue of the district for that pupil for the 
 65.20  fraction of the school day the pupil receives services under the 
 65.21  contract; and 
 65.22     (4) for special instruction and services provided to any 
 65.23  pupil by contracting for services with public, private, or 
 65.24  voluntary agencies other than school districts, that are 
 65.25  supplementary to a full educational program provided by the 
 65.26  school district, 52 percent of the amount of the summer program 
 65.27  contract for that pupil. 
 65.28     Subd. 2.  [ADJUSTED SUMMER PROGRAM BASE REVENUE.] For 
 65.29  fiscal year 1996 and later fiscal year 1997, a district's 
 65.30  adjusted summer program base revenue equals the district's 
 65.31  summer program base revenue times the ratio of the district's 
 65.32  average daily membership for the current school year to the 
 65.33  district's average daily membership for the base year. 
 65.34     Subd. 3.  [STATE TOTAL SUMMER PROGRAM REVENUE.] The state 
 65.35  total summer program revenue for fiscal year 1996 equals 
 65.36  $7,152,000.  The state total summer program revenue for fiscal 
 66.1   year 1997 equals $3,728,500.  Fiscal year 1996 summer program 
 66.2   revenue is for 1995 summer programs.  Fiscal year 1997 summer 
 66.3   program revenue is for 1996 summer programs provided in fiscal 
 66.4   year 1996. 
 66.5      Subd. 4.  [SCHOOL DISTRICT SUMMER PROGRAM REVENUE.] (a) A 
 66.6   school district's summer program revenue for fiscal year 
 66.7   1996 and fiscal year 1997 equals the state total summer program 
 66.8   revenue, minus the amount determined under paragraph (b), times 
 66.9   the ratio of the district's adjusted summer program base revenue 
 66.10  to the state total adjusted summer program base revenue. 
 66.11     (b) Notwithstanding paragraph (a), if the special education 
 66.12  base revenue for a district under section 124.3201, subdivision 
 66.13  2, equals zero, the summer program revenue equals the amount 
 66.14  computed according to subdivision 1 using current year data.  
 66.15     Subd. 5.  [SPECIAL EDUCATION SUMMER PROGRAM AID.] A school 
 66.16  district's special education summer program aid for fiscal year 
 66.17  1996 and fiscal year 1997 equals the district's summer program 
 66.18  revenue times the aid percentage factor for that year. 
 66.19     Subd. 6.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
 66.20  INTERMEDIATES.] For the purposes of this section and section 
 66.21  124.321, a special education cooperative or an intermediate 
 66.22  district shall allocate its approved expenditures for special 
 66.23  education programs among participating school districts.  
 66.24  Special education summer program aid for services provided by a 
 66.25  cooperative or intermediate district shall be paid to the 
 66.26  participating school districts. 
 66.27     Sec. 26.  Minnesota Statutes 1995 Supplement, section 
 66.28  124.323, subdivision 1, is amended to read: 
 66.29     Subdivision 1.  [DEFINITIONS.] In this section, the 
 66.30  definitions in this subdivision apply. 
 66.31     (a) "Unreimbursed special education cost" means the sum of 
 66.32  the following: 
 66.33     (1) expenditures for teachers' salaries, contracted 
 66.34  services, supplies, and equipment eligible for revenue under 
 66.35  sections 124.3201, and 124.3202, and 124.321; plus 
 66.36     (2) expenditures for tuition bills received under section 
 67.1   120.17 for services eligible for revenue under sections 
 67.2   124.3201, subdivision 2, and 124.3202, subdivision 1; minus 
 67.3      (3) revenue for teachers' salaries, contracted services, 
 67.4   supplies, and equipment under sections 124.3201, and 124.3202, 
 67.5   and 124.321; minus 
 67.6      (4) tuition receipts under section 120.17 for services 
 67.7   eligible for revenue under sections 124.3201, subdivision 2, and 
 67.8   124.3202, subdivision 1. 
 67.9      (b) "General revenue," for fiscal year 1996, means the sum 
 67.10  of the general education revenue according to section 124A.22, 
 67.11  subdivision 1, as adjusted according to section 124A.036, 
 67.12  subdivision 5, plus the total referendum revenue according to 
 67.13  section 124A.03, subdivision 1e.  For fiscal years 1997 and 
 67.14  later, "general revenue" means the sum of the general education 
 67.15  revenue according to section 124A.22, subdivision 1, as adjusted 
 67.16  according to section 124A.036, subdivision 5, plus the total 
 67.17  referendum revenue minus transportation sparsity revenue minus 
 67.18  total operating capital revenue. 
 67.19     Sec. 27.  Minnesota Statutes 1995 Supplement, section 
 67.20  124.323, subdivision 2, is amended to read: 
 67.21     Subd. 2.  [EXCESS COST REVENUE.] For 1996 and later fiscal 
 67.22  years, a district's special education excess cost revenue equals 
 67.23  the product of: 
 67.24     (1) 70 percent of the difference between (i) (1) the 
 67.25  district's unreimbursed special education cost per actual pupil 
 67.26  unit and (ii) (2) six percent for fiscal year 1996 and 5.7 
 67.27  percent for fiscal year 1997 and later years of the district's 
 67.28  general revenue per actual pupil unit, times 
 67.29     (2) the district's actual pupil units for that year. 
 67.30     Sec. 28.  Minnesota Statutes 1995 Supplement, section 
 67.31  124.574, subdivision 2f, is amended to read: 
 67.32     Subd. 2f.  [STATE TOTAL SECONDARY VOCATIONAL-DISABLED 
 67.33  REVENUE.] The state total secondary vocational-disabled revenue 
 67.34  for fiscal year 1996 equals $7,645,000 $8,520,000.  The state 
 67.35  total secondary vocational-disabled revenue for fiscal year 1997 
 67.36  equals $7,960,000 $8,830,000.  The state total secondary 
 68.1   vocational-disabled revenue for later fiscal years equals:  
 68.2      (1) the state total secondary vocational-disabled revenue 
 68.3   for the preceding fiscal year; times 
 68.4      (2) the program growth factor; times 
 68.5      (3) the ratio of the state total average daily membership 
 68.6   for the current fiscal year to the state total average daily 
 68.7   membership for the preceding fiscal year. 
 68.8      Sec. 29.  Minnesota Statutes 1995 Supplement, section 
 68.9   124.574, subdivision 2g, is amended to read: 
 68.10     Subd. 2g.  [SCHOOL DISTRICT SECONDARY VOCATIONAL-DISABLED 
 68.11  REVENUE.] (a) A school district's secondary vocational-disabled 
 68.12  revenue for fiscal year 1996 and later equals the state total 
 68.13  secondary vocational-disabled revenue, minus the amount 
 68.14  determined under paragraph (b), times the ratio of the 
 68.15  district's adjusted secondary vocational-disabled base revenue 
 68.16  to the state total adjusted secondary vocational-disabled base 
 68.17  revenue. 
 68.18     (b) Notwithstanding paragraph (a), if the secondary 
 68.19  vocational-disabled base revenue for a district equals zero and 
 68.20  no district residents were enrolled in secondary 
 68.21  vocational-disabled programs during the base year, the secondary 
 68.22  vocational-disabled revenue equals the amount computed according 
 68.23  to subdivision 2d using current year data. 
 68.24     Sec. 30.  Minnesota Statutes 1994, section 124.86, 
 68.25  subdivision 1, is amended to read: 
 68.26     Subdivision 1.  [AUTHORIZATION.] Each year each American 
 68.27  Indian-controlled tribal contract or grant school authorized by 
 68.28  the United States Code, title 25, section 450f, that is located 
 68.29  on a reservation within the state is eligible to receive tribal 
 68.30  contract or grant school aid subject to the requirements in this 
 68.31  subdivision. 
 68.32     (a) The school must plan, conduct, and administer an 
 68.33  education program that complies with the requirements of either 
 68.34  this chapter and chapters 120, 121, 122, 123, 124A, 124C, 125, 
 68.35  126, 129, and 268A or Code of Federal Regulations, title 25, 
 68.36  sections 31.0 to 45.80. 
 69.1      (b) The school must comply with all other state statutes 
 69.2   governing independent school districts or their equivalent in 
 69.3   the Code of Federal Regulations, title 25.  
 69.4      (c) The state tribal contract or grant school aid must be 
 69.5   used to supplement, and not to replace, the money for American 
 69.6   Indian education programs provided by the federal government. 
 69.7      Sec. 31.  Minnesota Statutes 1994, section 124.86, 
 69.8   subdivision 2, is amended to read:  
 69.9      Subd. 2.  [REVENUE AMOUNT.] An American Indian-controlled 
 69.10  tribal contract or grant school that is located on a reservation 
 69.11  within the state and that complies with the requirements in 
 69.12  subdivision 1 is eligible to receive tribal contract or grant 
 69.13  school aid.  The amount of aid is derived by: 
 69.14     (1) multiplying the formula allowance under section 
 69.15  124A.22, subdivision 2, times the difference between (a) the 
 69.16  actual pupil units as defined in section 124A.02, subdivision 
 69.17  15, in average daily membership, excluding section 124.17, 
 69.18  subdivision 2f, and (b) the number of pupils for the current 
 69.19  school year, weighted according to section 124.17, subdivision 
 69.20  1, receiving benefits under section 123.933 or 123.935 or for 
 69.21  which the school is receiving reimbursement under section 
 69.22  126.23; 
 69.23     (2) subtracting from the result in clause (1) the amount of 
 69.24  money allotted to the school by the federal government through 
 69.25  Indian School Equalization Program of the Bureau of Indian 
 69.26  Affairs, according to Code of Federal Regulations, title 25, 
 69.27  part 39, subparts A to E, for the basic program as defined by 
 69.28  section 39.11, paragraph (b), for the base rate as applied to 
 69.29  kindergarten through twelfth grade, excluding small school 
 69.30  adjustments and additional weighting, but not money allotted 
 69.31  through subparts F to L for contingency funds, school board 
 69.32  training, student training, interim maintenance and minor 
 69.33  repair, interim administration cost, prekindergarten, and 
 69.34  operation and maintenance, and the amount of money that is 
 69.35  received according to section 126.23; 
 69.36     (3) dividing the result in clause (2) by the actual pupil 
 70.1   units in average daily membership, excluding section 124.17, 
 70.2   subdivision 2f; and 
 70.3      (4) multiplying the actual pupil units, including section 
 70.4   124.17, subdivision 2f, in average daily membership by the 
 70.5   lesser of $1,500 or the sum of the result in clause (3) plus 
 70.6   $300. 
 70.7      Sec. 32.  Minnesota Statutes 1994, section 126.531, 
 70.8   subdivision 3, is amended to read: 
 70.9      Subd. 3.  Each committee shall be reimbursed for expenses 
 70.10  according to section 15.059, subdivision 6.  The state board 
 70.11  shall determine the membership terms and the duration of each 
 70.12  committee, which expire no later than June 30, 1997. 
 70.13     Sec. 33.  Minnesota Statutes 1995 Supplement, section 
 70.14  325G.203, subdivision 11, is amended to read: 
 70.15     Subd. 11.  [NONCONFORMITY.] "Nonconformity" means a 
 70.16  specific condition or generic defect or malfunction, or a defect 
 70.17  or condition that substantially impairs the use, value, or 
 70.18  safety of an assistive device, but does not include a condition 
 70.19  or defect that is the result of abuse or unauthorized 
 70.20  modification or alteration of the assistive device by the 
 70.21  consumer.  
 70.22     For those assistive devices regulated under section 
 70.23  153A.19, "nonconformity" does not include a condition of the 
 70.24  device that is the result of normal use which could be resolved 
 70.25  through fitting adjustments, cleaning, or proper care. 
 70.26     Sec. 34.  Minnesota Statutes 1994, section 466.01, 
 70.27  subdivision 1, is amended to read: 
 70.28     Subdivision 1.  [MUNICIPALITY.] For the purposes of 
 70.29  sections 466.01 to 466.15, "municipality" means any city, 
 70.30  whether organized under home rule charter or otherwise, any 
 70.31  county, town, public authority, public corporation, special 
 70.32  district, school district, however organized, county 
 70.33  agricultural society organized pursuant to chapter 38, joint 
 70.34  powers board or organization created under section 471.59 or 
 70.35  other statute, public library, regional public library system, 
 70.36  multicounty multitype library system, family services 
 71.1   collaborative established under section 121.8355, other 
 71.2   political subdivision, or community action agency. 
 71.3      Sec. 35.  Minnesota Statutes 1994, section 471.59, 
 71.4   subdivision 11, is amended to read: 
 71.5      Subd. 11.  [JOINT POWERS BOARD.] (a) Two or more 
 71.6   governmental units, through action of their governing bodies, by 
 71.7   adoption of a joint powers agreement that complies with the 
 71.8   provisions of subdivisions 1 to 5, may establish a joint board 
 71.9   to issue bonds or obligations pursuant to under any law by which 
 71.10  any of the governmental units establishing the joint board may 
 71.11  independently issue bonds or obligations and may use the 
 71.12  proceeds of the bonds or obligations to carry out the purposes 
 71.13  of the law under which the bonds or obligations are issued.  A 
 71.14  joint board created pursuant to established under this section 
 71.15  may issue obligations and other forms of indebtedness 
 71.16  only pursuant to in accordance with express authority granted by 
 71.17  the action of the governing bodies of the governmental 
 71.18  units which that established the joint board.  Except as 
 71.19  provided in paragraph (b), the joint board established pursuant 
 71.20  to under this subdivision shall must be composed solely of 
 71.21  members of the governing bodies of the governmental unit which 
 71.22  that established the joint board, and the.  A joint 
 71.23  board established under this subdivision may not pledge the full 
 71.24  faith and credit or taxing power of any of the governmental 
 71.25  units which that established the joint board.  The obligations 
 71.26  or other forms of indebtedness shall must be obligations of the 
 71.27  joint board issued on behalf of the governmental units creating 
 71.28  the joint board.  The obligations or other forms of indebtedness 
 71.29  shall must be issued in the same manner and subject to the same 
 71.30  conditions and limitations which that would apply if the 
 71.31  obligations were issued or indebtedness incurred by one of the 
 71.32  governmental units which that established the joint board, 
 71.33  provided that any reference to a governmental unit in the 
 71.34  statute, law, or charter provision authorizing the issuance of 
 71.35  the bonds or the incurring of the indebtedness shall be is 
 71.36  considered a reference to the joint board. 
 72.1      (b) Notwithstanding paragraph (a), one school district, one 
 72.2   county, and one public health entity, through action of their 
 72.3   governing bodies, may establish a joint board to establish and 
 72.4   govern a family services collaborative under section 121.8355.  
 72.5   The school district, county, and public health entity may 
 72.6   include other governmental entities at their discretion.  The 
 72.7   membership of a board established under this paragraph, in 
 72.8   addition to members of the governing bodies of the participating 
 72.9   governmental units, must include the representation required by 
 72.10  section 121.8355, subdivision 1, paragraph (a), selected in 
 72.11  accordance with section 121.8355, subdivision 1, paragraph (c). 
 72.12     Sec. 36.  Laws 1995, First Special Session chapter 3, 
 72.13  article 3, section 19, subdivision 7, is amended to read: 
 72.14     Subd. 7.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 72.15  school aid according to Minnesota Statutes, section 124.86: 
 72.16       $238,000     .....     1996
 72.17       $361,000 $861,000    .....     1997
 72.18     The 1996 appropriation includes $19,000 for 1995 and 
 72.19  $219,000 for 1996. 
 72.20     The 1997 appropriation includes $38,000 for 1996 and 
 72.21  $323,000 $823,000 for 1997. 
 72.22     Sec. 37.  Laws 1995, First Special Session chapter 3, 
 72.23  article 3, section 19, subdivision 15, is amended to read: 
 72.24     Subd. 15.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
 72.25  secondary vocational education aid according to Minnesota 
 72.26  Statutes, section 124.573: 
 72.27       $11,874,000     .....     1996 
 72.28       $11,596,000 $11,771,000    .....     1997 
 72.29     The 1996 appropriation includes $2,017,000 for 1995 and 
 72.30  $9,857,000 for 1996.  
 72.31     The 1997 appropriation includes $1,739,000 for 1996 and 
 72.32  $9,857,000 $10,032,000 for 1997. 
 72.33     Sec. 38.  Laws 1995, First Special Session chapter 3, 
 72.34  article 15, section 26, subdivision 7, is amended to read: 
 72.35     Subd. 7.  [TARGETED NEEDS AID.] For targeted needs aid: 
 72.36       $37,682,000 $39,546,000    .....     1996 
 73.1        $41,597,000 $41,606,000    .....     1997 
 73.2      (a) Of the 1996 amount, $945,000 is for 1995 LEP aid and 
 73.3   $4,359,000 $6,223,000 is for 1996 LEP aid.  Of the 1996 amount, 
 73.4   $1,979,000 is for 1995 AOM aid and $11,555,000 is for 1996 AOM 
 73.5   aid.  Of the 1996 amount, $18,844,000 is for 1996 integration 
 73.6   aid. 
 73.7      (b) Of the 1997 amount, $1,089,000 $1,098,000 is for 1996 
 73.8   LEP aid and $7,913,000 is for 1997 LEP aid.  Of the 1997 amount, 
 73.9   $2,039,000 is for 1996 AOM aid and $11,712,000 is for 1997 AOM 
 73.10  aid.  Of the 1997 amount, $18,844,000 is for 1997 integration 
 73.11  aid. 
 73.12     (c) As a condition of receiving a grant, each district must 
 73.13  continue to report its costs according to the uniform financial 
 73.14  accounting and reporting system.  As a further condition of 
 73.15  receiving a grant, each district must submit a report to the 
 73.16  chairs of the education committees of the legislature about the 
 73.17  actual expenditures it made for integration using the grant 
 73.18  money including achievement results.  These grants may be used 
 73.19  to transport students attending a nonresident district under 
 73.20  Minnesota Statutes, section 120.062, to the border of the 
 73.21  resident district.  A district may allocate a part of the grant 
 73.22  to the transportation fund for this purpose. 
 73.23     Sec. 39.  Laws 1995, First Special Session chapter 3, 
 73.24  article 15, section 26, subdivision 8, is amended to read: 
 73.25     Subd. 8.  [SECONDARY VOCATIONAL; STUDENTS WITH 
 73.26  DISABILITIES.] For aid for secondary vocational education for 
 73.27  pupils with disabilities according to Minnesota Statutes, 
 73.28  section 124.574: 
 73.29       $4,489,000 $4,936,000    .....     1996 
 73.30       $5,424,000 $6,020,000    .....     1997 
 73.31     The 1996 appropriation includes $590,000 for 1995 and 
 73.32  $3,899,000 $4,346,000 for 1996.  
 73.33     The 1997 appropriation includes $688,000 $766,000 for 1996 
 73.34  and $4,736,000 $5,254,000 for 1997.  
 73.35     Sec. 40.  Laws 1995, First Special Session chapter 3, 
 73.36  article 15, section 26, subdivision 10, is amended to read: 
 74.1      Subd. 10.  [LOW-INCOME CONCENTRATION GRANTS.] For 
 74.2   low-income concentration grants according to Laws 1994, chapter 
 74.3   647, article 8, section 43: 
 74.4        $1,150,000     .....     1996 
 74.5        $1,150,000 $1,300,000    .....     1997 
 74.6      Each grant shall be for no more than $50,000. 
 74.7      Sec. 41.  [OSSEO LEVY.] 
 74.8      For levies payable in 1997 only, independent school 
 74.9   district No. 279, Osseo, may levy a tax in an amount not to 
 74.10  exceed $800,000.  The proceeds of this levy must be used to 
 74.11  provide instructional services for at-risk children. 
 74.12     Sec. 42.  [FISCAL YEAR 1997 SECONDARY VOCATIONAL 
 74.13  GUARANTEE.] 
 74.14     (a) Notwithstanding Minnesota Statutes, section 124.573, 
 74.15  subdivision 2f, paragraphs (a) and (b), a school district's 
 74.16  secondary vocational aid for fiscal year 1997 shall not be less 
 74.17  than 25 percent of the lessor of (1) $90,000, or (2) the 
 74.18  approved expenditure included in subdivision 2b, paragraph (b). 
 74.19     (b) Aid provided according to this section is not included 
 74.20  in the fiscal year 1997 base for calculating fiscal year 1998 
 74.21  aid according to Minnesota Statutes, section 124.573, 
 74.22  subdivision 2f, paragraph (a). 
 74.23     (c) The amounts allocated according to this section are not 
 74.24  included in the secondary vocational aid base for fiscal year 
 74.25  1998 and after. 
 74.26     Sec. 43.  [EFFECTIVE DATE.] 
 74.27     Sections 11 to 14, 26 and 29 are effective retroactively to 
 74.28  July 1, 1995, for the 1995-1996 school year and later.  Sections 
 74.29  21 to 23 are effective for fiscal year 1996.  Sections 24 and 38 
 74.30  are effective the day following final enactment. 
 74.31                             ARTICLE 4 
 74.32                         COMMUNITY PROGRAMS 
 74.33     Section 1.  [120.063] [SCHOOL ATTENDANCE.] 
 74.34     Attendance at a particular public school is a privilege not 
 74.35  a right for a pupil.  
 74.36     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
 75.1   120.064, subdivision 9, is amended to read: 
 75.2      Subd. 9.  [ADMISSION REQUIREMENTS.] A charter school may 
 75.3   limit admission to: 
 75.4      (1) pupils within an age group or grade level; 
 75.5      (2) people who are eligible to participate in the high 
 75.6   school graduation incentives program under section 126.22; or 
 75.7      (3) residents of a specific geographic area where the 
 75.8   percentage of the population of non-Caucasian people of that 
 75.9   area is greater than the percentage of the non-Caucasian 
 75.10  population in the congressional district in which the geographic 
 75.11  area is located, and as long as the school reflects the racial 
 75.12  and ethnic diversity of the specific area. 
 75.13     A charter school shall enroll an eligible pupil who submits 
 75.14  a timely application, unless the number of applications exceeds 
 75.15  the capacity of a program, class, grade level, or building.  In 
 75.16  this case, pupils shall be accepted by lot. 
 75.17     A charter school may not limit admission to pupils on the 
 75.18  basis of intellectual ability, measures of achievement or 
 75.19  aptitude, or athletic ability.  
 75.20     Sec. 3.  [121.615] [MINNESOTA SCHOOL-TO-WORK STUDENT 
 75.21  ORGANIZATION.] 
 75.22     Subdivision 1.  [CITATION.] This section may be cited as 
 75.23  the "Minnesota school-to-work student organization act." 
 75.24     Subd. 2.  [CREATION OF FOUNDATION.] There is created the 
 75.25  Minnesota school-to-work student organization foundation.  The 
 75.26  purpose of the foundation shall be to promote vocational student 
 75.27  organizations and applied leadership opportunities in Minnesota 
 75.28  public schools through public-private partnerships.  The 
 75.29  foundation shall be a nonprofit organization.  The board of 
 75.30  directors of the foundation and activities of the foundation are 
 75.31  under the direction of the department of children, families, and 
 75.32  learning. 
 75.33     Subd. 3.  [BOARD OF DIRECTORS.] The board of directors of 
 75.34  the school-to-work student organization foundation shall consist 
 75.35  of: 
 75.36     (1) chairs or designees from the board of directors of FFA 
 76.1   (formerly Future Farmers of America), Future Leaders of 
 76.2   America/Future Homemakers of America, post-secondary agriculture 
 76.3   students, home economics related occupations, Health Occupations 
 76.4   Student Association, Distributive Education Clubs of America, 
 76.5   Delta Upsilon Chi, Secondary Vocational Industrial Clubs of 
 76.6   America, Post-secondary Vocational Industrial Clubs of America, 
 76.7   Secondary Business Professionals of America, and Post-secondary 
 76.8   Business Professionals of America; 
 76.9      (2) four members from business and industry appointed by 
 76.10  the governor; and 
 76.11     (3) five students representing diverse vocational areas, 
 76.12  three of whom are appointed by the commissioner of the 
 76.13  department of children, families, and learning and two of whom 
 76.14  are appointed by the chancellor of the Minnesota state colleges 
 76.15  and universities with the advice of the executive councils of 
 76.16  each vocational education student organization. 
 76.17     Executive directors of vocational education student 
 76.18  organizations are ex officio, nonvoting members of the board. 
 76.19     Subd. 4.  [FOUNDATION PROGRAMS.] The foundation shall 
 76.20  advance applied leadership and intracurricular vocational 
 76.21  learning experiences for students.  These may include, but are 
 76.22  not limited to: 
 76.23     (1) recognition programs and awards for students 
 76.24  demonstrating excellence in applied leadership; 
 76.25     (2) summer programs for student leadership, career 
 76.26  development, applied academics, and mentorship programs with 
 76.27  business and industry; 
 76.28     (3) recognition programs for teachers, administrators, and 
 76.29  others who make outstanding contributions to school-to-work 
 76.30  programs; 
 76.31     (4) outreach programs to increase the involvement of urban 
 76.32  and suburban students; 
 76.33     (5) organized challenges requiring cooperation and 
 76.34  competition for secondary and post-secondary students; 
 76.35     (6) assistance and training to community teams to increase 
 76.36  career awareness and empowerment of youth as community leaders; 
 77.1   and 
 77.2      (7) assessment and activities in order to plan for and 
 77.3   implement continuous improvement.  
 77.4      To the extent possible, the foundation shall make these 
 77.5   programs available to students in all parts of the state. 
 77.6      Subd. 5.  [POWERS AND DUTIES.] The foundation may: 
 77.7      (1) identify and plan common goals and priorities for the 
 77.8   various school-to-work student organizations in Minnesota; 
 77.9      (2) publish brochures or booklets relating to the purposes 
 77.10  of the foundation and collect reasonable fees for the 
 77.11  publications; 
 77.12     (3) seek and receive public and private money, grants, and 
 77.13  in-kind services and goods from nonstate sources for the 
 77.14  purposes of the foundation; 
 77.15     (4) contract with consultants on behalf of the 
 77.16  school-to-work student organizations; and 
 77.17     (5) plan, implement, and expend money for awards and other 
 77.18  forms of recognition for school-to-work student activities. 
 77.19     Subd. 6.  [CONTRACTS.] The foundation board of directors 
 77.20  shall review and approve foundation personnel and programming 
 77.21  contracts. 
 77.22     Subd. 7.  [FOUNDATION STAFF.] The commissioner of the 
 77.23  department of children, families, and learning shall appoint the 
 77.24  executive director of the foundation from three candidates 
 77.25  nominated and submitted by the foundation board of directors 
 77.26  and, as necessary, other staff who shall perform duties and have 
 77.27  responsibilities solely related to the foundation.  The 
 77.28  employees appointed are not state employees under chapter 43A, 
 77.29  but are covered under section 3.736.  The employees may 
 77.30  participate in the state health and state insurance plans for 
 77.31  employees in unclassified service.  
 77.32     The commissioner shall appoint from the office of lifework 
 77.33  development a liaison to the foundation board. 
 77.34     Subd. 8.  [PUBLIC FUNDING.] The commissioner of the 
 77.35  department of children, families, and learning shall identify 
 77.36  and secure appropriate sources of state and federal funding from 
 78.1   various state agencies, including, but not limited to, Minnesota 
 78.2   state colleges and universities, for the operation and 
 78.3   development of school-to-work student organizations. 
 78.4      Subd. 9.  [PRIVATE FUNDING.] The foundation shall seek 
 78.5   private resources to supplement the allocated state and federal 
 78.6   money.  Individuals, businesses, and other organizations may 
 78.7   contribute to the foundation in any manner specified by the 
 78.8   board of directors. 
 78.9      Subd. 10.  [REPORT.] The foundation shall submit an annual 
 78.10  report and assessment to the office of lifework development and 
 78.11  to the board of trustees of the Minnesota state colleges and 
 78.12  universities. 
 78.13     Subd. 11.  [APPROPRIATION.] There is annually appropriated 
 78.14  to the foundation all the amounts received by the foundation 
 78.15  pursuant to this section. 
 78.16     Subd. 12.  [STUDENT ORGANIZATIONS.] Individual boards of 
 78.17  vocational education student organizations shall continue their 
 78.18  operations in accordance with section 126.151 and applicable 
 78.19  federal law. 
 78.20     Sec. 4.  Minnesota Statutes 1994, section 121.8355, 
 78.21  subdivision 1, is amended to read: 
 78.22     Subdivision 1.  [ESTABLISHMENT.] (a) In order to qualify as 
 78.23  a family services collaborative, a minimum of one school 
 78.24  district, one county, and one public health entity, one 
 78.25  community action agency as defined in section 268.53, and one 
 78.26  Head Start grantee if the community action agency is not the 
 78.27  designated federal grantee for the Head Start program must agree 
 78.28  in writing to provide coordinated family services and commit 
 78.29  resources to an integrated fund.  Collaboratives are expected to 
 78.30  have broad community representation, which may include other 
 78.31  local providers, including additional school districts, 
 78.32  counties, and public health entities, other municipalities, 
 78.33  public libraries, existing culturally specific community 
 78.34  organizations, tribal entities, local health organizations, 
 78.35  private and nonprofit service providers, child care providers, 
 78.36  local foundations, community-based service groups, businesses, 
 79.1   local transit authorities or other transportation providers, 
 79.2   community action agencies under section 268.53, senior citizen 
 79.3   volunteer organizations, parent organizations, parents, and 
 79.4   sectarian organizations that provide nonsectarian services. 
 79.5      (b) Community-based collaboratives composed of 
 79.6   representatives of schools, local businesses, local units of 
 79.7   government, parents, students, clergy, health and social 
 79.8   services providers, youth service organizations, and existing 
 79.9   culturally specific community organizations may plan and develop 
 79.10  services for children and youth.  A community-based 
 79.11  collaborative must agree to collaborate with county, school 
 79.12  district, community action, and public health entities.  Their 
 79.13  services may include opportunities for children or youth to 
 79.14  improve child health and development, reduce barriers to 
 79.15  adequate school performance, improve family functioning, provide 
 79.16  community service, enhance self esteem, and develop general 
 79.17  employment skills.  
 79.18     (c) Members of the governing bodies of political 
 79.19  subdivisions involved in the establishment of a family services 
 79.20  collaborative shall select representatives of the 
 79.21  nongovernmental entities listed in paragraph (a) to serve on the 
 79.22  governing board of a collaborative.  The governing body members 
 79.23  of the political subdivisions shall select one or more 
 79.24  representatives of the nongovernmental entities within the 
 79.25  family service collaborative. 
 79.26     Sec. 5.  Minnesota Statutes 1994, section 121.8355, is 
 79.27  amended by adding a subdivision to read: 
 79.28     Subd. 2a.  [DUTIES OF CERTAIN COORDINATING BODIES.] By 
 79.29  mutual agreement of the collaborative and a coordinating body 
 79.30  listed in this subdivision, a family services collaborative may 
 79.31  assume the duties of a community transition interagency 
 79.32  committee established under section 120.17, subdivision 16; an 
 79.33  interagency early intervention committee established under 
 79.34  section 120.1701, subdivision 5; a local advisory council 
 79.35  established under section 245.4875, subdivision 5; or a local 
 79.36  coordinating council established under section 245.4875, 
 80.1   subdivision 6. 
 80.2      Sec. 6.  Minnesota Statutes 1994, section 124.17, is 
 80.3   amended by adding a subdivision to read: 
 80.4      Subd. 5.  [BASIC SKILLS SUMMER SCHOOL PUPIL UNITS.] When a 
 80.5   pupil who has not passed an assessment of basic graduation 
 80.6   standards in reading, writing, or mathematics is enrolled in a 
 80.7   mastery of basic skills summer school program that is not a part 
 80.8   of the regular school term and the student has a total 
 80.9   enrollment time of more than 1,020 hours in a school year, the 
 80.10  pupil may be counted as more than one pupil in average daily 
 80.11  membership for purposes of this subdivision only.  The amount in 
 80.12  excess of one pupil must be determined by the ratio of the 
 80.13  number of hours of instruction provided to that pupil in excess 
 80.14  of 1,020 hours.  For each pupil, only the amount of summer 
 80.15  school enrollment time attributable to basic skills instruction 
 80.16  may be used to calculate the additional hours in the school 
 80.17  year.  Basic skills instruction is defined as in Minnesota's 
 80.18  rules on graduation standards and includes reading, writing, and 
 80.19  mathematics.  Hours that occur after the close of the 
 80.20  instructional year in June shall be attributable to the 
 80.21  following fiscal year.  A pupil for whom payment is made under 
 80.22  this subdivision may be counted by a district only for the 
 80.23  computation of basic revenue, according to section 124A.22, 
 80.24  subdivision 2, minus $300. 
 80.25     Sec. 7.  Minnesota Statutes 1994, section 124.2711, 
 80.26  subdivision 6, is amended to read: 
 80.27     Subd. 6.  [RESERVE ACCOUNT.] Early childhood family 
 80.28  education revenue, which includes aids, levies, fees, grants, 
 80.29  and all other revenues received by the school district for early 
 80.30  childhood family education programs, must be maintained in a 
 80.31  reserve account within the community service fund.  
 80.32     Sec. 8.  Minnesota Statutes 1994, section 124.2713, 
 80.33  subdivision 10, is amended to read: 
 80.34     Subd. 10.  [RESERVE ACCOUNT.] Community education revenue, 
 80.35  which includes aids, levies, fees, grants, and all other 
 80.36  revenues received by the school district for community education 
 81.1   programs, must be maintained in a reserve account within the 
 81.2   community service fund. 
 81.3      Sec. 9.  Minnesota Statutes 1994, section 124.276, is 
 81.4   amended to read: 
 81.5      124.276 [CAREER TEACHER FAMILY CONNECTIONS AID.] 
 81.6      Subdivision 1.  [ELIGIBILITY.] A school district that has a 
 81.7   career teacher family connections program, according to sections 
 81.8   125.70 to 125.705, for one or more of its teachers is eligible 
 81.9   for aid to extend the teaching contract of a career family 
 81.10  connections teacher.  
 81.11     Subd. 2.  [STATE SHARE OF EXTENDED CONTRACT.] The state 
 81.12  shall pay two-thirds of the portion of the teaching contract, 
 81.13  excluding fringe benefits, that is in addition to the standard 
 81.14  teaching contract of the district.  The district shall pay the 
 81.15  remaining portion.  
 81.16     Subd. 3.  [COMMISSIONER APPROVAL.] The commissioner may 
 81.17  approve plans and applications for districts throughout the 
 81.18  state for career teacher family connections aid.  Application 
 81.19  procedures and deadlines shall be established by the 
 81.20  commissioner.  
 81.21     Subd. 4.  [USE OF AID.] Career teacher family connections 
 81.22  aid may be used only to implement a career teacher family 
 81.23  connections program.  
 81.24     Sec. 10.  Minnesota Statutes 1994, section 124.912, 
 81.25  subdivision 6, is amended to read: 
 81.26     Subd. 6.  [CRIME RELATED COSTS.] For taxes levied in 1991 
 81.27  and subsequent years, payable in 1992 and subsequent years, each 
 81.28  school district may make a levy on all taxable property located 
 81.29  within the school district for the purposes specified in this 
 81.30  subdivision.  The maximum amount which may be levied for all 
 81.31  costs under this subdivision shall be equal to $1 multiplied by 
 81.32  the population of the school district.  For purposes of this 
 81.33  subdivision, "population" of the school district means the same 
 81.34  as contained in section 275.14.  The proceeds of the levy must 
 81.35  be used for reimbursing the cities and counties who contract 
 81.36  with the school district for the following purposes:  (1) to pay 
 82.1   the costs incurred for the salaries, benefits, and 
 82.2   transportation costs of peace officers and sheriffs for liaison 
 82.3   services in the district's middle and secondary schools and; (2) 
 82.4   to pay the costs for a drug abuse prevention program as defined 
 82.5   in Minnesota Statutes 1991 Supplement, section 609.101, 
 82.6   subdivision 3, paragraph (f) in the elementary schools; or (3) 
 82.7   to pay the costs for a gang resistance education training 
 82.8   curriculum in the middle schools.  The school district must 
 82.9   initially attempt to contract for these services with the police 
 82.10  department of each city or the sheriff's department of the 
 82.11  county within the school district containing the school 
 82.12  receiving the services.  If a local police department or a 
 82.13  county sheriff's department does not wish to provide the 
 82.14  necessary services, the district may contract for these services 
 82.15  with any other police or sheriff's department located entirely 
 82.16  or partially within the school district's boundaries.  The levy 
 82.17  authorized under this subdivision is not included in determining 
 82.18  the school district's levy limitations. 
 82.19     Sec. 11.  Minnesota Statutes 1994, section 124A.291, is 
 82.20  amended to read: 
 82.21     124A.291 [RESERVED REVENUE FOR CERTAIN TEACHER PROGRAM.] 
 82.22     A district that has a career teacher family connections 
 82.23  program or a mentor-teacher program may reserve part of the 
 82.24  basic revenue under section 124A.22, subdivision 2, for the 
 82.25  district's share, of the portion of the teaching contract that 
 82.26  is in addition to the standard teaching contract of the district.
 82.27     Sec. 12.  Minnesota Statutes 1994, section 124C.45, is 
 82.28  amended by adding a subdivision to read: 
 82.29     Subd. 1a.  [RESERVE REVENUE.] Each school district that is 
 82.30  a member of an area learning center must reserve revenue in an 
 82.31  amount equal to at least 90 percent of the basic revenue 
 82.32  generated by each student attending an area learning center 
 82.33  program under this section.  The amount of reserved revenue 
 82.34  under this subdivision may only be spent on program costs 
 82.35  associated with the area learning center. 
 82.36     Sec. 13.  Minnesota Statutes 1994, section 125.70, is 
 83.1   amended to read: 
 83.2      125.70 [CITATION.] 
 83.3      Sections 125.701 to 125.705 may be cited as the "Minnesota 
 83.4   career teacher family connections act."  
 83.5      Sec. 14.  Minnesota Statutes 1994, section 125.701, is 
 83.6   amended to read: 
 83.7      125.701 [PURPOSE OF THE CAREER TEACHER FAMILY CONNECTIONS 
 83.8   ACT.] 
 83.9      The legislature recognizes the unique and lifelong learning 
 83.10  and development process of all human beings.  The legislature is 
 83.11  committed to the goal of maximizing the individual growth 
 83.12  potential of all learners.  The purposes of the career teacher 
 83.13  family connections act are:  
 83.14     (1) to offer career teacher family connections programs 
 83.15  which emphasize learning and development based on learner 
 83.16  outcomes; 
 83.17     (2) to recognize and utilize the unique skills that 
 83.18  teachers, students, family, and the community have in both the 
 83.19  teaching process and the learning and development process; and 
 83.20     (3) to provide an opportunity for maximum use of teachers, 
 83.21  principals, and counselors.  
 83.22     Sec. 15.  Minnesota Statutes 1994, section 125.703, is 
 83.23  amended to read: 
 83.24     125.703 [ADVISORY COUNCIL.] 
 83.25     The school board of a district providing a career teacher 
 83.26  family connections program shall appoint an advisory council.  
 83.27  Council members shall be selected from the school attendance 
 83.28  area in which programs are provided.  Members of the council may 
 83.29  include students, teachers, principals, administrators and 
 83.30  community members.  A majority of the members shall be parents 
 83.31  with children participating in the local program.  The local 
 83.32  advisory council shall advise the school board in the 
 83.33  development, coordination, supervision, and review of the career 
 83.34  teacher program.  The council shall meet at least two times each 
 83.35  year with any established community education advisory council 
 83.36  in the district.  Members of the council may be members of the 
 84.1   community education advisory council.  The council shall report 
 84.2   to the school board. 
 84.3      Sec. 16.  Minnesota Statutes 1994, section 125.704, is 
 84.4   amended to read: 
 84.5      125.704 [CAREER TEACHER FAMILY CONNECTIONS PROGRAM 
 84.6   COMPONENTS.] 
 84.7      Subdivision 1.  [MANDATORY COMPONENTS.] A career 
 84.8   teacher family connections program shall include:  
 84.9      (1) participation by a designated individual as a career 
 84.10  teacher, principal-teacher, or counselor teacher; 
 84.11     (2) an emphasis on each individual child's unique learning 
 84.12  and development needs; 
 84.13     (3) procedures to give the career teacher a major 
 84.14  responsibility for leadership of the instructional and 
 84.15  noninstructional activities of each child beginning with early 
 84.16  childhood family education; 
 84.17     (4) procedures to involve parents in the learning and 
 84.18  development experiences of their children; 
 84.19     (5) procedures to implement outcome based education by 
 84.20  focusing on the needs of the learner; 
 84.21     (6) procedures to coordinate and integrate the 
 84.22  instructional program with all community education programs; 
 84.23     (7) procedures to concentrate career teacher programs at 
 84.24  sites that provide early childhood family education and 
 84.25  subsequent learning and development programs; and 
 84.26     (8) procedures for the district to fund the program.  
 84.27     Subd. 2.  [OPTIONAL COMPONENTS.] A career teacher family 
 84.28  connections program may include:  
 84.29     (1) efforts to improve curricula strategies, instructional 
 84.30  strategies, and use of materials that respond to the individual 
 84.31  educational needs and learning styles of each pupil in order to 
 84.32  enable each pupil to make continuous progress and to learn at a 
 84.33  rate appropriate to that pupil's abilities; 
 84.34     (2) efforts to develop student abilities in basic skills; 
 84.35  applied learning skills; and, when appropriate, arts; 
 84.36  humanities; physical, natural, and social sciences; 
 85.1   multicultural education; physical, emotional, and mental health; 
 85.2   consumer economics; and career education; 
 85.3      (3) use of community resources and communications media to 
 85.4   pursue learning and development opportunities for pupils; 
 85.5      (4) staff development for teachers and other school 
 85.6   personnel; 
 85.7      (5) improvements to the learning and development 
 85.8   environment, including use of the community in general, to 
 85.9   enhance the learning and development process; 
 85.10     (6) cooperative efforts with other agencies involved with 
 85.11  human services or child development and development of 
 85.12  alternative community based learning and development 
 85.13  experiences; 
 85.14     (7) post-secondary education components for pupils who are 
 85.15  able to accelerate or programs for pupils with special abilities 
 85.16  and interests who are given advanced learning and development 
 85.17  opportunities within existing programs; 
 85.18     (8) use of volunteers in the learning and development 
 85.19  program; 
 85.20     (9) flexible attendance schedules for pupils; 
 85.21     (10) adult education component; 
 85.22     (11) coordination with early childhood family education and 
 85.23  community education programs; 
 85.24     (12) variable student/faculty ratios for special education 
 85.25  students to provide for special programming; 
 85.26     (13) inclusion of nonpublic pupils as part of the ratio in 
 85.27  the career teacher, principal-teacher, and counselor teacher 
 85.28  component; 
 85.29     (14) application of educational research findings; 
 85.30     (15) summer learning and development experiences for 
 85.31  students as recommended by the career teacher, 
 85.32  principal-teacher, and counselor teacher; 
 85.33     (16) use of education assistants, teacher aides, or 
 85.34  paraprofessionals as part of the career teacher program; 
 85.35     (17) establishment of alternative criteria for high school 
 85.36  graduation; and 
 86.1      (18) variable age and learning size groupings of students. 
 86.2      Sec. 17.  Minnesota Statutes 1994, section 125.705, 
 86.3   subdivision 1, is amended to read: 
 86.4      Subdivision 1.  [STATUS.] A career teacher family 
 86.5   connections program may include a career teacher, 
 86.6   principal-teacher, and counselor teacher component.  The career 
 86.7   teacher, principal-teacher, and counselor teacher shall not be 
 86.8   the exclusive teacher for students assigned to them but shall 
 86.9   serve as a primary teacher and perform the function of 
 86.10  developing and implementing a student's overall learning and 
 86.11  development program.  The career teacher, principal-teacher, and 
 86.12  counselor teacher may be responsible for regular assignments as 
 86.13  well as learning and development programs for other assigned 
 86.14  students.  
 86.15     Sec. 18.  Minnesota Statutes 1994, section 126.22, 
 86.16  subdivision 1, is amended to read: 
 86.17     Subdivision 1.  [PURPOSE.] The legislature finds that it is 
 86.18  critical for persons to obtain at least a high school education 
 86.19  to function in today's society to provide options for children 
 86.20  to succeed in school.  Therefore, the purpose of this section is 
 86.21  to provide incentives for and encourage all Minnesota students 
 86.22  who have experienced or are experiencing difficulty in the 
 86.23  traditional education system to enroll in alternative programs 
 86.24  in order to complete their high school education. 
 86.25     Sec. 19.  Minnesota Statutes 1995 Supplement, section 
 86.26  126.22, subdivision 2, is amended to read: 
 86.27     Subd. 2.  [ELIGIBLE PUPILS.] The following pupils are 
 86.28  eligible to participate in the high school graduation incentives 
 86.29  education options program:  
 86.30     (a) any pupil who is between the ages of 12 and under the 
 86.31  age of 21, or who is an elementary pupil, and in either case, 
 86.32  who:  
 86.33     (1) is at least two grade levels performs substantially 
 86.34  below the performance level for pupils of the same age in a 
 86.35  locally determined achievement test; or 
 86.36     (2) is at least one year behind in satisfactorily 
 87.1   completing coursework or obtaining credits for graduation; or 
 87.2      (3) is pregnant or is a parent; or 
 87.3      (4) has been assessed as chemically dependent; or 
 87.4      (5) has been excluded or expelled according to sections 
 87.5   127.26 to 127.39; or 
 87.6      (6) has been referred by a school district for enrollment 
 87.7   in an eligible program or a program pursuant to section 126.23; 
 87.8   or 
 87.9      (7) is a victim of physical or sexual abuse; or 
 87.10     (8) has experienced mental health problems; or 
 87.11     (9) has experienced homelessness sometime within six months 
 87.12  before requesting a transfer to an eligible program; or 
 87.13     (10) speaks English as a second language or has limited 
 87.14  English proficiency; or 
 87.15     (b) any person who is at least 21 years of age and who:  
 87.16     (1) has received fewer than 14 years of public or nonpublic 
 87.17  education, beginning at age 5; 
 87.18     (2) has not completed the requirements for a high school 
 87.19  diploma; and 
 87.20     (3) at the time of application, (i) is eligible for 
 87.21  reemployment insurance benefits or has exhausted the benefits, 
 87.22  (ii) is eligible for, or is receiving income maintenance and 
 87.23  support services, as defined in section 268.0111, subdivision 5, 
 87.24  or (iii) is eligible for services under the displaced homemaker 
 87.25  program, state wage-subsidy program, or any programs under the 
 87.26  federal Jobs Training Partnership Act or its successor. 
 87.27     Sec. 20.  Minnesota Statutes 1995 Supplement, section 
 87.28  126.22, subdivision 3, is amended to read: 
 87.29     Subd. 3.  [ELIGIBLE PROGRAMS.] (a) A pupil who is eligible 
 87.30  according to subdivision 2 may enroll in area learning centers 
 87.31  under sections 124C.45 to 124C.48, or according to section 
 87.32  121.11, subdivision 12. 
 87.33     (b) A pupil who is eligible according to subdivision 2 and 
 87.34  who is between the ages of 16 and 21 may enroll in 
 87.35  post-secondary courses under section 123.3514. 
 87.36     (c) A pupil who is eligible under subdivision 2, may enroll 
 88.1   in any public elementary or secondary education program.  
 88.2   However, a person who is eligible according to subdivision 2, 
 88.3   clause (b), may enroll only if the school board has adopted a 
 88.4   resolution approving the enrollment. 
 88.5      (d) A pupil who is eligible under subdivision 2, may enroll 
 88.6   part time, if 16 years of age or older, or full time in any 
 88.7   nonprofit, nonpublic, nonsectarian school that has contracted 
 88.8   with the serving school district to provide educational services.
 88.9      (e) A pupil who is between the ages of 16 and 21 may enroll 
 88.10  in any adult basic education programs approved under section 
 88.11  124.26 and operated under the community education program 
 88.12  contained in section 121.88. 
 88.13     Sec. 21.  Minnesota Statutes 1995 Supplement, section 
 88.14  126.22, subdivision 5, is amended to read: 
 88.15     Subd. 5.  [DISSEMINATION OF INFORMATION.] A school district 
 88.16  shall disseminate information, developed by the department of 
 88.17  children, families, and learning, about the high school 
 88.18  graduation incentives program to residents in the district who 
 88.19  are under the age of 21. 
 88.20     Sec. 22.  Minnesota Statutes 1995 Supplement, section 
 88.21  126.22, subdivision 8, is amended to read: 
 88.22     Subd. 8.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
 88.23  attending an eligible program full time under subdivision 3, 
 88.24  paragraph (d), the department of children, families, and 
 88.25  learning shall pay 88 90 percent of the basic revenue of the 
 88.26  district to the eligible program and 12 ten percent of the basic 
 88.27  revenue to the resident district within 30 days after the 
 88.28  eligible program verifies enrollment using the form provided by 
 88.29  the department.  For a pupil attending an eligible program part 
 88.30  time, basic revenue shall be reduced proportionately, according 
 88.31  to the amount of time the pupil attends the program, and the 
 88.32  payments to the eligible program and the resident district shall 
 88.33  be reduced accordingly.  A pupil for whom payment is made 
 88.34  according to this section may not be counted by any district for 
 88.35  any purpose other than computation of basic revenue, according 
 88.36  to section 124A.22, subdivision 2.  If payment is made for a 
 89.1   pupil under this subdivision, a school district shall not 
 89.2   reimburse a program under section 126.23 for the same pupil. 
 89.3      (b) The department of children, families, and learning 
 89.4   shall pay up to 100 percent of the basic revenue to the eligible 
 89.5   program if there is an agreement to that effect between the 
 89.6   school district and the eligible program. 
 89.7      Sec. 23.  Minnesota Statutes 1995 Supplement, section 
 89.8   126.23, is amended to read: 
 89.9      126.23 [AID FOR PRIVATE CONTRACTED ALTERNATIVE PROGRAMS.] 
 89.10     Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
 89.11  program, eligible under section 126.22, subdivision 3, paragraph 
 89.12  (d), or subdivision 3a, operated by a private organization that 
 89.13  has contracted with a school district to provide educational 
 89.14  services for eligible pupils under section 126.22, subdivision 
 89.15  2, the district contracting with the private organization must 
 89.16  reimburse the provider an amount equal to at least 88 90 percent 
 89.17  of the basic revenue of the district for each pupil attending 
 89.18  the program full time.  For a pupil attending the program part 
 89.19  time, basic revenue paid to the program shall be reduced 
 89.20  proportionately, according to the amount of time the pupil 
 89.21  attends the program, and basic revenue paid to the district 
 89.22  shall be reduced accordingly.  Pupils for whom a district 
 89.23  provides reimbursement may not be counted by the district for 
 89.24  any purpose other than computation of basic revenue, according 
 89.25  to section 124A.22, subdivision 2.  If payment is made to a 
 89.26  district or program for a pupil under this section, the 
 89.27  department of children, families, and learning shall not make a 
 89.28  payment for the same pupil under section 126.22, subdivision 8. 
 89.29     Subd. 2.  [RESERVE ACCOUNT.] During the term of the 
 89.30  contract to provide educational services under subdivision 1, 
 89.31  all state aid under subdivision 1 accrues to the account 
 89.32  assigned to the alternative program site and is reserved for 
 89.33  that site. 
 89.34     Sec. 24.  Minnesota Statutes 1995 Supplement, section 
 89.35  128B.03, subdivision 3a, is amended to read: 
 89.36     Subd. 3a.  [STATE REVENUES.] The state shall pay to the 
 90.1   council for the support of the school all aids, revenues, and 
 90.2   grants available to a school district as though the school were 
 90.3   a school district.  The aids, revenues, and grants include, but 
 90.4   are not limited to, the following: 
 90.5      (1) general education revenue, as defined in section 
 90.6   124A.22, subdivision 1, including at least compensatory revenue; 
 90.7      (2) transportation revenue; 
 90.8      (3) capital expenditure facilities revenue; 
 90.9      (4) capital expenditure equipment revenue; 
 90.10     (5) special education revenue; 
 90.11     (6) limited English proficiency aid; 
 90.12     (7) career teacher family connections aid; 
 90.13     (8) assurance of mastery revenue; 
 90.14     (9) school lunch revenue; 
 90.15     (10) school milk revenue; 
 90.16     (11) health and safety revenue; 
 90.17     (12) Indian language and culture grants; 
 90.18     (13) arts planning grants; and 
 90.19     (14) all other aids, revenues, or grants available to a 
 90.20  school district. 
 90.21     If there are eligibility requirements for an aid, revenue, 
 90.22  or grant, the requirements shall be met in order to obtain the 
 90.23  aid, revenue, or grant, except that a requirement to levy shall 
 90.24  be waived.  To compute the amount of aid, revenue, or grant 
 90.25  requiring a levy, the amount of the levy shall be zero. 
 90.26     If a school district obtains revenue from the proceeds of a 
 90.27  levy, the council shall be deemed to have levied and the state 
 90.28  shall pay aid equal to the amount that would have been levied.  
 90.29  The amount shall be approved by the commissioner of children, 
 90.30  families, and learning. 
 90.31     The proceeds of any aid, grant, or revenue shall be used 
 90.32  only as provided in the applicable statute. 
 90.33     Sec. 25.  Minnesota Statutes 1994, section 256.736, 
 90.34  subdivision 11, is amended to read: 
 90.35     Subd. 11.  [CASE MANAGEMENT SERVICES.] (a) The county 
 90.36  agency may, to the extent of available resources, enroll 
 91.1   targeted caretakers described in subdivision 16 in case 
 91.2   management services and for those enrolled shall: 
 91.3      (1) Provide an assessment as described in subdivision 10, 
 91.4   paragraph (a), clause (14).  As part of the assessment, the case 
 91.5   manager shall inform caretakers of the screenings available 
 91.6   through the early periodic screening, diagnosis and treatment 
 91.7   (EPSDT) program under chapter 256B and preschool screening under 
 91.8   chapter 123, and encourage caretakers to have their children 
 91.9   screened.  The case manager must work with the caretaker in 
 91.10  completing this task; 
 91.11     (2) Develop an employability development plan as described 
 91.12  in subdivision 10, paragraph (a), clause (15).  The case manager 
 91.13  must work with the caretaker in completing this task.  For 
 91.14  caretakers who are not literate or who have not completed high 
 91.15  school, the first goal for the caretaker should be to complete 
 91.16  literacy training or a general equivalency diploma.  Caretakers 
 91.17  who are literate and have completed high school shall be 
 91.18  counseled to set realistic attainable goals, taking into account 
 91.19  the long-term needs of both the caretaker and the caretaker's 
 91.20  family; 
 91.21     (3) Coordinate services such as child care, transportation, 
 91.22  and education assistance necessary to enable the caretaker to 
 91.23  work toward the goals developed in clause (2).  The case manager 
 91.24  shall refer caretakers to resource and referral services, if 
 91.25  available, and shall assist caretakers in securing appropriate 
 91.26  child care services.  When a client needs child care services in 
 91.27  order to attend a Minnesota public or nonprofit college, 
 91.28  university or technical college, the case manager shall contact 
 91.29  the appropriate agency to reserve child care funds for the 
 91.30  client.  A caretaker who needs child care services in order to 
 91.31  complete high school or a general equivalency diploma is 
 91.32  eligible for child care under sections 256H.01 to 256H.19; 
 91.33     (4) Develop, execute, and monitor a contract between the 
 91.34  county agency and the caretaker.  The contract must be based 
 91.35  upon the employability development plan described in subdivision 
 91.36  10, paragraph (a), clause (15), but must be a separate 
 92.1   document.  It must include:  (a) specific goals of the caretaker 
 92.2   including stated measurements of progress toward each goal, the 
 92.3   estimated length of participation in the program, and the number 
 92.4   of hours of participation per week; (b) educational, training, 
 92.5   and employment activities and support services provided by the 
 92.6   county agency, including child care; and (c) the participant's 
 92.7   obligations and the conditions under which the county will 
 92.8   withdraw the services provided; 
 92.9      The contract must be signed and dated by the case manager 
 92.10  and participant and may include other terms as desired or needed 
 92.11  by either party.  In all cases, however, the case manager must 
 92.12  assist the participant in reviewing and understanding the 
 92.13  contract and must ensure that the caretaker has set forth in the 
 92.14  contract realistic goals consistent with the ultimate goal of 
 92.15  self-sufficiency for the caretaker's family; and 
 92.16     (5) Develop and refer caretakers to counseling or peer 
 92.17  group networks for emotional support while participating in 
 92.18  work, education, or training. 
 92.19     (b) In addition to the duties in paragraph (a), for minor 
 92.20  parents and pregnant minors, the case manager shall: 
 92.21     (1) Ensure that the contract developed under paragraph (a), 
 92.22  clause (4), considers all factors set forth in section 257.33, 
 92.23  subdivision 2; 
 92.24     (2) Assess the housing and support systems needed by the 
 92.25  caretaker in order to provide the dependent children with 
 92.26  adequate parenting.  The case manager shall encourage minor 
 92.27  parents and pregnant minors who are not living with friends or 
 92.28  relatives to live in a group home or foster care setting.  If 
 92.29  minor parents and pregnant minors are unwilling to live in a 
 92.30  group home or foster care setting or if no group home or foster 
 92.31  care setting is available, the case manager shall assess their 
 92.32  need for training in parenting and independent living skills and 
 92.33  when appropriate shall refer them to available counseling 
 92.34  programs designed to teach needed skills; and 
 92.35     (3) Inform minor parents or pregnant minors of, and assist 
 92.36  them in evaluating the appropriateness of, the high school 
 93.1   graduation incentives program under section 126.22, including 
 93.2   post-secondary enrollment options, and the employment-related 
 93.3   and community-based instruction programs.  
 93.4      (c) A caretaker may request a conciliation conference to 
 93.5   attempt to resolve disputes regarding the contents of a contract 
 93.6   developed under this section or a housing and support systems 
 93.7   assessment conducted under this section.  The caretaker may 
 93.8   request a hearing pursuant to section 256.045 to dispute the 
 93.9   contents of a contract or assessment developed under this 
 93.10  section.  The caretaker need not request a conciliation 
 93.11  conference in order to request a hearing pursuant to section 
 93.12  256.045. 
 93.13     Sec. 26.  Laws 1995, First Special Session chapter 3, 
 93.14  article 1, section 61, is amended to read: 
 93.15     Sec. 61.  [FORMULA ALLOWANCE.] 
 93.16     Notwithstanding the amount of the formula allowance for 
 93.17  fiscal year 1997, in Minnesota Statutes, section 124A.22, 
 93.18  subdivision 2, the commissioner shall use the amount of the 
 93.19  formula allowance minus $300 for fiscal year 1997 in determining 
 93.20  the payments under Minnesota Statutes, sections 123.3514, 
 93.21  subdivisions 6 and 8; 6b; and 124A.02, subdivision 21; 126.22; 
 93.22  and 126.23. 
 93.23     Sec. 27.  Laws 1995, First Special Session chapter 3, 
 93.24  article 4, section 29, subdivision 10, is amended to read: 
 93.25     Subd. 10.  [FAMILY COLLABORATIVES.] For family 
 93.26  collaboratives: 
 93.27       $6,000,000      .....     1996
 93.28       $6,000,000      .....     1997
 93.29     Of the appropriation, $150,000 each year is for grants 
 93.30  targeted to assist in providing collaborative children's library 
 93.31  service programs.  To be eligible, a family collaborative grant 
 93.32  recipient must collaborate with at least one public library and 
 93.33  one children's or family organization.  The public library must 
 93.34  involve the regional public library system and multitype library 
 93.35  system to which it belongs in the planning and provide for an 
 93.36  evaluation of the program. 
 94.1      No more than 2.5 percent of the appropriation is available 
 94.2   to the state to administer and evaluate the grant program. 
 94.3      Any balance in the first year does not cancel but is 
 94.4   available in the second year.  An applicant receiving a grant 
 94.5   may carry forward any unencumbered money. 
 94.6      Sec. 28.  Laws 1995, First Special Session chapter 3, 
 94.7   article 8, section 25, subdivision 18, is amended to read: 
 94.8      Subd. 18.  [CAREER TEACHER FAMILY CONNECTIONS AID.] For 
 94.9   career teacher family connections aid according to Minnesota 
 94.10  Statutes, section 124.276: 
 94.11       $125,000     .....     1996 
 94.12       $125,000 $225,000    .....     1997 
 94.13     Any balance in the first year does not cancel but is 
 94.14  available in the second year. 
 94.15     Notwithstanding Minnesota Statutes, section 124.276, 
 94.16  subdivision 2, the aid may be used for the increased district 
 94.17  contribution to the teachers' retirement association and to FICA 
 94.18  resulting from the portion of the teaching contract that is in 
 94.19  addition to the standard teaching contract of the district. 
 94.20     Sec. 29.  [MINNESOTA COMMISSION ON NATIONAL AND COMMUNITY 
 94.21  SERVICE.] 
 94.22     The Minnesota commission on national and community service 
 94.23  retains responsibility for implementing federal programs under 
 94.24  the federal commission on national and community service.  
 94.25  Responsibilities of the Minnesota commission on national and 
 94.26  community service may only be transferred to the governor's 
 94.27  workforce development council under Minnesota Statutes 1995 
 94.28  Supplement, section 268.665 after the attorney general has 
 94.29  certified that the workforce development council meets all the 
 94.30  federal requirements for the commission on national and 
 94.31  community service. 
 94.32     Notwithstanding Minnesota Statutes 1995 Supplement, section 
 94.33  121.705, if the Minnesota commission on national and community 
 94.34  service retains responsibility for federal programs under this 
 94.35  section, it also retains responsibility for administering the 
 94.36  youth works program and state appropriations made for the youth 
 95.1   works program under Laws 1995, First Special Session chapter 3, 
 95.2   article 4, section 29, subdivisions 19 and 20. 
 95.3      Sec. 30.  [PILOT AFTER-SCHOOL ENRICHMENT PROGRAMS.] 
 95.4      Subdivision 1.  [ESTABLISHMENT.] A pilot after-school 
 95.5   enrichment grant program is established to provide 
 95.6   implementation grants to community collaboratives for designated 
 95.7   neighborhoods of Minneapolis and St. Paul, and for selected 
 95.8   areas outside Minneapolis and St. Paul.  The commissioner of 
 95.9   children, families, and learning shall develop criteria for 
 95.10  after-school enrichment programs in up to three qualifying 
 95.11  neighborhoods in each of the cities, and selected neighborhoods 
 95.12  in the rest of the state.  Qualifying neighborhoods are 
 95.13  designated by the commissioner under subdivision 2. 
 95.14     Subd. 2.  [QUALIFYING NEIGHBORHOODS.] In Minneapolis, the 
 95.15  neighborhoods that qualify for designation are the Near North 
 95.16  Side, Hawthorne, Sumner-Glenwood, Powderhorn Central, Whittier 
 95.17  and Phillips.  In St. Paul, neighborhoods that qualify for 
 95.18  designation are Summit-University, Thomas-Dale, North End, 
 95.19  Payne-Phalen, Daytons Bluff, and the West Side. 
 95.20     Subd. 3.  [PROGRAM OUTCOMES.] The outcomes of the 
 95.21  after-school enrichment programs are to: 
 95.22     (1) increase the number of children participating in 
 95.23  after-school programs who live in the designated neighborhoods; 
 95.24     (2) reduce the juvenile crime rate in the designated 
 95.25  neighborhoods; 
 95.26     (3) reduce the number of police calls involving juveniles 
 95.27  during the afternoon after-school hours; 
 95.28     (4) increase school attendance; 
 95.29     (5) reduce the number of school suspensions; 
 95.30     (6) increase the number of youth engaged in community 
 95.31  service; 
 95.32     (7) increase youth academic achievement; and 
 95.33     (8) increase the skills of youth in computers, the arts, 
 95.34  athletics, and other activities. 
 95.35     Subd. 4.  [PLAN.] By July 1, 1996, a community 
 95.36  collaborative, consisting of representatives of community 
 96.1   organizations and representatives of the county, city, and 
 96.2   school district, shall develop a plan for an after-school 
 96.3   enrichment program for children ages nine through 13 who reside 
 96.4   in the designated neighborhood to be served.  Reading mentorship 
 96.5   programs may be included in the plan.  Each community 
 96.6   collaborative developing a plan shall identify points of 
 96.7   collaboration with other organizations and resources available 
 96.8   to implement an after-school enrichment program.  The plan shall 
 96.9   include: 
 96.10     (1) collaboration and leverage of community resources that 
 96.11  exist and are effective; 
 96.12     (2) creative outreach to the children; 
 96.13     (3) collaboration of grassroots organizations; 
 96.14     (4) local governments and schools acting as resources; 
 96.15     (5) community control over the design of the enrichment 
 96.16  program; 
 96.17     (6) the availability of enrichment activities for a minimum 
 96.18  of five days per week after school with future plans to extend 
 96.19  to seven days per week; and 
 96.20     (7) identification of the sources of nonstate funding to 
 96.21  extend the programming beyond the period of the pilot grant. 
 96.22     Subd. 5.  [PLAN APPROVAL; GRANTS.] (a) A plan developed by 
 96.23  a community collaborative under subdivision 4 shall be submitted 
 96.24  to the commissioner of children, family, and learning.  When a 
 96.25  collaborative's plan is approved by the commissioner, the 
 96.26  commissioner shall award a grant to the community collaborative 
 96.27  for the implementation of the plan. 
 96.28     Sec. 31.  [GRANTS TO IMPLEMENT CONSTRUCTIVE SCHOOL 
 96.29  DISCIPLINE POLICIES.] 
 96.30     Subdivision 1.  [POLICY.] The legislature acknowledges the 
 96.31  importance of teaching students in a regular classroom setting 
 96.32  to the extent possible.  Students in an educational setting are 
 96.33  expected to behave in a manner that is appropriate for learning 
 96.34  to take place.  When students fail to meet behavioral 
 96.35  expectations, school discipline policies should penalize 
 96.36  students' inappropriate behavior, with the ultimate goal of 
 97.1   returning students to their regular classrooms.  Schools should 
 97.2   involve parents in collaborative efforts to alter students' 
 97.3   inappropriate classroom behavior.  Schools and parents should 
 97.4   find ways to ensure that students' inappropriate behavior does 
 97.5   not become chronic, necessitating long-term intervention and the 
 97.6   need for special services. 
 97.7      Subd. 2.  [ESTABLISHMENT.] A grant program for fiscal year 
 97.8   1997 is established to develop, implement, and evaluate school 
 97.9   discipline policies, consistent with the pupil fair dismissal 
 97.10  act under Minnesota Statutes, sections 127.26 to 127.48.  
 97.11  Discipline policies, developed under this section, should be 
 97.12  designed to enable students to successfully return to the 
 97.13  regular classroom setting after being sanctioned for 
 97.14  inappropriate behavior.  Discipline policies should focus on 
 97.15  early intervention strategies to limit the need for providing 
 97.16  regular education students with additional special programs and 
 97.17  services. 
 97.18     Subd. 3.  [ELIGIBILITY.] An applicant for a grant must be a 
 97.19  school site, a school district, a charter school, or a provider 
 97.20  of an alternative education program.  To be eligible for a 
 97.21  grant, the grant applicant must meet all of the following 
 97.22  criteria: 
 97.23     (1) develop a plan to mediate issues relating to district 
 97.24  or school site codes of conduct that apply to students who are 
 97.25  removed from a class or activity period; 
 97.26     (2) include in the code of conduct a plan to remove from 
 97.27  the regular classroom setting those students who violate the 
 97.28  code; 
 97.29     (3) provide students who violate the code with an 
 97.30  alternative education setting within the school or program site; 
 97.31  and 
 97.32     (4) make the alternative education setting a constructive 
 97.33  experience by using instructional materials tied to educational 
 97.34  standards, placing students in an alternative setting outside 
 97.35  the normal school day, involving parents in effecting 
 97.36  disciplinary measures, or developing intervention techniques 
 98.1   such as time outs, among other alternatives. 
 98.2      Subd. 4.  [APPLICATION PROCESS.] To obtain a grant to 
 98.3   implement constructive school discipline policies, a grant 
 98.4   applicant must submit an application to the commissioner of 
 98.5   children, families, and learning in the form and manner the 
 98.6   commissioner establishes.  The application must describe how the 
 98.7   applicant will meet the eligibility criteria under subdivision 
 98.8   3.  The commissioner may require the applicant to provide 
 98.9   additional information. 
 98.10     Subd. 5.  [GRANT AWARDS.] The commissioner may award grants 
 98.11  of up to $50,000.  Grant recipients must be located throughout 
 98.12  the state.  The commissioner shall make grant awards based on 
 98.13  the district's disciplinary experience and on the alternative 
 98.14  education settings the grant recipient proposes to use.  Grant 
 98.15  recipients must use the grant proceeds to accomplish the 
 98.16  purposes of this section. 
 98.17     Subd. 6.  [EVALUATION.] The commissioner shall evaluate the 
 98.18  grant sites and selected control sites to determine the impact 
 98.19  of the constructive discipline policy grant program on measures 
 98.20  of student behavior and performance, including, but not limited 
 98.21  to, student achievement and attendance, and the impact of the 
 98.22  program on the school site, the student body, the classroom, and 
 98.23  the school faculty.  The evaluation must also address the 
 98.24  financial impact of the program on the district and the school 
 98.25  site.  Upon implementing a student code of conduct consistent 
 98.26  with this section, the grant recipient must cooperate in 
 98.27  evaluating the impact of code policies.  As a part of the 
 98.28  evaluation process, the grant recipient must document student 
 98.29  and parent response to code policies over at least a three-year 
 98.30  period.  The commissioner shall compile for the education 
 98.31  committees of the legislature a progress report by February 1, 
 98.32  1998, and a final report by February 1, 2000, on the 
 98.33  effectiveness and impact of discipline policies. 
 98.34     Sec. 32.  [ADULT BASIC EDUCATION STUDY.] 
 98.35     The legislature finds that increased adult literacy and 
 98.36  access to educational opportunities are necessary for 
 99.1   undereducated adults to more fully participate in their families 
 99.2   and to become self-sufficient contributors to their communities 
 99.3   and the Minnesota economy.  There is a growing recognition that 
 99.4   basic education provides the opportunity for adults to learn the 
 99.5   skills necessary for fuller participation.  To examine the 
 99.6   current and future needs for adult basic education and the 
 99.7   resources necessary to meet these identified needs, the 
 99.8   commissioner of the department of children, families, and 
 99.9   learning shall conduct or contract for a study of adult basic 
 99.10  education.  The study, at a minimum, must include the following: 
 99.11     (1) an examination of the adult basic education formula 
 99.12  under section 124.26; 
 99.13     (2) the percentage of full adult basic education formula 
 99.14  funding that is prorated and the impact of proration on 
 99.15  programming and service delivery; 
 99.16     (3) the hold harmless provision based on an adult basic 
 99.17  education project's 1991-1992 state aid, and the impact on 
 99.18  program delivery; 
 99.19     (4) the distribution of funds under the adult basic 
 99.20  education formula and how closely it matches the need for adult 
 99.21  basic education throughout the state; 
 99.22     (5) an inventory of federal, state and local projects and 
 99.23  programs with skills and education programming for adults, 
 99.24  including education programs operated by the department of 
 99.25  corrections for inmates; and 
 99.26     (6) an examination of the changing role for adult basic 
 99.27  education with potential changes in income maintenance programs 
 99.28  and other aspects of welfare reform. 
 99.29     The commissioner shall report the findings of the study to 
 99.30  the chairs of the education committees of the legislature by 
 99.31  December 1, 1996.  The report must contain recommendations for 
 99.32  funding of adult basic education and for consolidation or 
 99.33  coordination of adult education programming. 
 99.34     Sec. 33.  [SPECIAL COMMUNITY SERVICE LEVY.] 
 99.35     In addition to other levies it is authorized to make each 
 99.36  year, independent school district No. 2190, Yellow Medicine