as introduced - 80th Legislature, 1997 1st Special Session (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to education; kindergarten through grade 12; 1.3 providing for general education; special programs; 1.4 lifework development; education organization, 1.5 cooperation, and facilities; education excellence; 1.6 academic performance; education policy issues; 1.7 libraries; technology; state agencies; conforming and 1.8 technical amendments; school bus safety; tax deduction 1.9 and credit; appropriating money; amending Minnesota 1.10 Statutes 1996, sections 12.21, subdivision 3; 1.11 120.0111; 120.062, subdivisions 3, 6, 7, 9, and 11; 1.12 120.0621, subdivisions 5a, 6, and by adding a 1.13 subdivision; 120.064, subdivisions 3, 8, 10, 20a, and 1.14 by adding a subdivision; 120.101, subdivisions 5, 5c, 1.15 and by adding a subdivision; 120.1701, subdivision 3; 1.16 120.181; 121.15, subdivisions 6, 7, and by adding 1.17 subdivisions; 121.602, subdivisions 1, 2, and 4; 1.18 121.611; 121.615, subdivisions 2, 3, 5, 6, 7, 8, 9, 1.19 and 10; 121.703, subdivision 3; 121.904, subdivision 1.20 4a; 123.35, subdivision 8, and by adding a 1.21 subdivision; 123.3514, subdivisions 4, 4a, 4c, 4e, 6c, 1.22 8, and by adding subdivisions; 123.39, subdivision 6; 1.23 123.70, subdivisions 5, 7, and 10; 123.799, 1.24 subdivision 1; 123.7991, subdivisions 1 and 2; 1.25 123.951; 123.972, subdivision 5; 124.155, subdivisions 1.26 1 and 2; 124.17, subdivisions 1d, 4, and by adding 1.27 subdivisions; 124.193; 124.195, subdivisions 2, 7, 10, 1.28 11, and by adding a subdivision; 124.225, subdivisions 1.29 1, 13, 14, 15, 16, and 17; 124.226, subdivision 10; 1.30 124.2445; 124.2455; 124.248, subdivisions 3, 4, and by 1.31 adding subdivisions; 124.26, subdivision 1b; 124.2613, 1.32 subdivisions 3, 4, and 6; 124.2727, subdivision 6d; 1.33 124.273, subdivisions 1d, 1e, 1f, and 5; 124.276, by 1.34 adding a subdivision; 124.312, subdivisions 4 and 5; 1.35 124.313; 124.314, subdivisions 1 and 2; 124.3201, 1.36 subdivisions 1, 2, 3, and 4; 124.321, subdivision 1; 1.37 124.323, subdivisions 1 and 2; 124.42, subdivision 4; 1.38 124.431, subdivisions 2 and 11; 124.45; 124.481; 1.39 124.574, subdivisions 1, 2d, 2f, 5, 6, and 9; 124.83, 1.40 subdivisions 1 and 2; 124.86, subdivision 2, and by 1.41 adding a subdivision; 124.91, subdivisions 1 and 5; 1.42 124.912, subdivisions 1, 2, 3, and 6; 124.916, 1.43 subdivisions 1, 2, and 3; 124.918, subdivision 6; 1.44 124.95, subdivision 2; 124.961; 124A.03, subdivisions 1.45 1c and 1g; 124A.04, subdivision 2; 124A.22, 1.46 subdivisions 1, 2, as amended, 3, 6, 6a, 8a, 10, 11, 2.1 13, 13b, 13d, and by adding a subdivision; 124A.225, 2.2 subdivision 1; 124A.23, subdivisions 1, 2, 3, and 5; 2.3 124A.26, subdivision 1; 124A.28; 124C.45, subdivision 2.4 1a; 124C.46, subdivisions 1 and 2; 124C.498, 2.5 subdivisions 2 and 3; 125.05, subdivisions 1c and 2; 2.6 125.12, subdivision 14; 126.22, subdivisions 2, 3, 3a, 2.7 and 8; 126.23, subdivision 1; 126.77, subdivision 1; 2.8 127.26; 127.27, subdivisions 5, 6, 7, 8, 10, and by 2.9 adding a subdivision; 127.281; 127.29; 127.30, 2.10 subdivisions 1, 2, 3, and by adding a subdivision; 2.11 127.31, subdivisions 2, 7, 8, 13, 14, and 15; 127.311; 2.12 127.32; 127.33; 127.36; 127.37; 127.38; 128A.02, by 2.13 adding a subdivision; 128B.10, subdivision 1; 128C.02, 2.14 subdivision 2, and by adding a subdivision; 128C.12, 2.15 subdivision 1; 129C.10, subdivision 3; 134.155, 2.16 subdivisions 2 and 3; 134.34, subdivision 4; 136D.72, 2.17 subdivisions 2 and 3; 144.29; 169.01, subdivision 6; 2.18 169.435, subdivision 2; 169.443, subdivision 3; 2.19 169.447, subdivision 6; 169.4501, subdivisions 1 and 2.20 2; 169.4502, subdivisions 2, 7, 9, 11, and by adding 2.21 subdivisions; 169.4503, subdivisions 1, 2, 10, 13, 14, 2.22 17, 19, 23, 24, and by adding a subdivision; 169.4504, 2.23 subdivision 1, and by adding a subdivision; 169.452; 2.24 171.321, subdivision 3; 171.3215, subdivision 4; 2.25 245.493, subdivision 1; 245.91, subdivision 2; 2.26 260.185, subdivision 1; 260A.02, subdivision 3; 2.27 268.665, subdivision 2; 290.01, subdivision 19b; and 2.28 290.0671, subdivision 1; Laws 1991, chapter 265, 2.29 article 1, section 30, as amended; Laws 1993, chapter 2.30 146, article 5, section 20; Laws 1994, chapter 647, 2.31 article 7, section 18, subdivisions 2 and 3; Laws 1995 2.32 First Special Session, chapter 3, articles 1, section 2.33 56; 2, section 52; 3, section 11, subdivisions 1, 2, 2.34 and 5; 11, section 21, subdivision 3; and 12, section 2.35 7, subdivision 1; Laws 1996, chapter 412, articles 4, 2.36 section 34, subdivision 4; and 12, section 11; 2.37 proposing coding for new law in Minnesota Statutes, 2.38 chapters 120; 121; 124; 126; 127; 128C; 135A; and 290; 2.39 repealing Minnesota Statutes 1996, sections 120.105; 2.40 120.65; 121.11, subdivision 8; 121.602, subdivisions 3 2.41 and 5; 121.904, subdivision 4d; 121.912, subdivision 2.42 7; 124.17, subdivision 5; 124.177; 124.223; 124.225, 2.43 subdivisions 3a, 7a, 7b, 7d, 7e, 8a, 8k, and 10; 2.44 124.226; 124.2728; 124.276, subdivision 2; 124.3201, 2.45 subdivisions 2a and 2b; 124.912, subdivisions 2 and 3; 2.46 124A.22, subdivisions 4a and 4b; 124A.26, subdivisions 2.47 1a, 2, 3, 4, and 5; 124C.74; 127.31, subdivision 6; 2.48 134.34, subdivision 4a; 134.46; 169.4502, subdivision 2.49 6; 169.4503, subdivisions 3, 8, 9, 11, 12, and 22; and 2.50 169.454, subdivision 11. 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 1996, section 120.062, 2.55 subdivision 9, is amended to read: 2.56 Subd. 9. [TRANSPORTATION.]
(a)If requested by the parent 2.57 of a pupil, the nonresident district shall provide 2.58 transportation within the district. The state shall pay2.59 transportation aid to the district according to section 126.96.36.199 The resident district is not required to provide or pay for 3.1 transportation between the pupil's residence and the border of 3.2 the nonresident district. A parent may be reimbursed by the 3.3 nonresident district for the costs of transportation from the 3.4 pupil's residence to the border of the nonresident district if 3.5 the pupil is from a family whose income is at or below the 3.6 poverty level, as determined by the federal government. The 3.7 reimbursement may not exceed the pupil's actual cost of 3.8 transportation or 15 cents per mile traveled, whichever is 3.9 less. Reimbursement may not be paid for more than 250 miles per 3.10 week. 3.11 At the time a nonresident district notifies a parent or 3.12 guardian that an application has been accepted under subdivision 3.13 5 or 6, the nonresident district must provide the parent or 3.14 guardian with the following information regarding the 3.15 transportation of nonresident pupils under thissection :123.39, 3.16 subdivision 6. 3.17 (1) a nonresident district may transport a pupil within the3.18 pupil's resident district under this section only with the3.19 approval of the resident district; and3.20 (2) a parent or guardian of a pupil attending a nonresident3.21 district under this section may appeal under section 123.39,3.22 subdivision 6, the refusal of the resident district to allow the3.23 nonresident district to transport the pupil within the resident3.24 district.3.25 (b) Notwithstanding paragraph (a) and section 124.225,3.26 subdivision 8l, transportation provided by a nonresident3.27 district between home and school for a pupil attending school3.28 under this section is authorized for nonregular transportation3.29 revenue under section 124.225, if the following criteria are met:3.30 (1) the school that the pupil was attending prior to3.31 enrolling in the nonresident district under this section was3.32 closed;3.33 (2) the distance from the closed school to the next nearest3.34 school in the district that the student could attend is at least3.35 20 miles;3.36 (3) the pupil's residence is at least 20 miles from any4.1 school that the pupil could attend in the resident district; and4.2 (4) the pupil's residence is closer to the school of4.3 attendance in the nonresident district than to any school the4.4 pupil could attend in the resident district.4.5 Sec. 2. Minnesota Statutes 1996, section 121.904, 4.6 subdivision 4a, is amended to read: 4.7 Subd. 4a. [LEVY RECOGNITION.] (a) "School district tax 4.8 settlement revenue" means the current, delinquent, and 4.9 manufactured home property tax receipts collected by the county 4.10 and distributed to the school district, including distributions 4.11 made pursuant to section 279.37, subdivision 7, and excluding 4.12 the amount levied pursuant to section 124.914, subdivision 1. 4.13 (b) In June of each year, the school district shall 4.14 recognize as revenue, in the fund for which the levy was made, 4.15 the lesser of: 4.16 (1) the May, June, and July school district tax settlement 4.17 revenue received in that calendar year; or 4.18 (2) the sum of the state aids and credits enumerated in 4.19 section 124.155, subdivision 2, which are for the fiscal year 4.20 payable in that fiscal year plus an amount equal to the levy 4.21 recognized as revenue in June of the prior year plus 31 percent 4.22 for fiscal year 1996 and thereafterof the amount of the levy 4.23 certified in the prior calendar year according to section 4.24 124A.03, subdivision 2 , plus or minus auditor's adjustments, not4.25 including levy portions that are assumed by the state; or 4.26 (3) 18.1 percent for fiscal year 1996, the percent4.27 determined under Laws 1996, chapter 461, section 3, for fiscal4.28 year 1997 and that same percent thereafter of the amount of the4.29 levy certified in the prior calendar year, plus or minus4.30 auditor's adjustments, not including levy portions that are4.31 assumed by the state, which remains after subtracting, by fund,4.32 the amounts levied for the following purposes:4.33 (i) reducing or eliminating projected deficits in the4.34 reserved fund balance accounts for unemployment insurance and4.35 bus purchases;4.36 (ii) statutory operating debt pursuant to section 124.914,5.1 subdivision 1;5.2 (iii) retirement and severance pay pursuant to sections5.3 122.531, subdivision 9, 124.2725, subdivision 15, 124.4945,5.4 124.912, subdivision 1, and 124.916, subdivision 3, and Laws5.5 1975, chapter 261, section 4;5.6 (iv) amounts levied for bonds issued and interest thereon,5.7 amounts levied for debt service loans and capital loans, amounts5.8 levied for down payments under section 124.82, subdivision 3;5.9 and5.10 (v) amounts levied under section 124.755.5.11 Notwithstanding the foregoing, the levy recognition5.12 percentage for the referendum levy certified according to5.13 section 124A.03, subdivision 2, is 31 percent.5.14 (3)(i) 7.0 percent of the lesser of the amount of the 5.15 general education levy certified in the prior calendar year 5.16 according to section 124A.23, subdivision 2, or the difference 5.17 between the amount of the total general fund levy certified in 5.18 the prior calendar year and the sum of the amounts certified in 5.19 the prior calendar year according to sections 124A.03, 5.20 subdivision 2; 124.315, subdivision 4; 124.912, subdivisions 1, 5.21 paragraph (2), 2, and 3; 124.916, subdivisions 1, 2, and 3, 5.22 paragraphs (4), (5), and (6); and 124.918, subdivision 6; plus 5.23 (ii) 31 percent of the referendum levy certified in the 5.24 prior calendar year according to section 124A.03, subdivision 2; 5.25 plus 5.26 (iii) the entire amount of the levy certified in the prior 5.27 calendar year according to sections 124.315, subdivision 4; 5.28 124.912, subdivisions 1, paragraph (2), 2, and 3; 124.916, 5.29 subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 5.30 124.918, subdivision 6. 5.31 (c) In July of each year, the school district shall 5.32 recognize as revenue that portion of the school district tax 5.33 settlement revenue received in that calendar year and not 5.34 recognized as revenue for the previous fiscal year pursuant to 5.35 clause (b). 5.36 (d) All other school district tax settlement revenue shall 6.1 be recognized as revenue in the fiscal year of the settlement. 6.2 Portions of the school district levy assumed by the state, 6.3 including prior year adjustments and the amount to fund the 6.4 school portion of the reimbursement made pursuant to section 6.5 273.425, shall be recognized as revenue in the fiscal year 6.6 beginning in the calendar year for which the levy is payable. 6.7 Sec. 3. Minnesota Statutes 1996, section 123.3514, is 6.8 amended by adding a subdivision to read: 6.9 Subd. 3a. [ALTERNATIVE PUPIL.] "Alternative pupil" means 6.10 an 11th or 12th grade student not enrolled in a public school 6.11 district, and includes students attending nonpublic schools and 6.12 students who are home schooled. An alternative pupil is 6.13 considered a pupil for purposes of this section only. An 6.14 alternative pupil must register with the commissioner of 6.15 children, families, and learning before participating in the 6.16 post-secondary enrollment options program. The commissioner 6.17 shall prescribe the form and manner of the registration, in 6.18 consultation with the nonpublic education council under section 6.19 123.935, subdivision 7, and may request any necessary 6.20 information from the alternative pupil. 6.21 Sec. 4. Minnesota Statutes 1996, section 123.3514, 6.22 subdivision 4, is amended to read: 6.23 Subd. 4. [AUTHORIZATION; NOTIFICATION.] Notwithstanding 6.24 any other law to the contrary, an 11th or 12th grade pupil 6.25 enrolled in a publicschool or an American Indian-controlled 6.26 tribal contract or grant school eligible for aid under section 6.27 124.86, except a foreign exchange pupil enrolled in a district 6.28 under a cultural exchange program, may apply to an eligible 6.29 institution, as defined in subdivision 3, to enroll in 6.30 nonsectarian courses offered by that post-secondary 6.31 institution. If an institution accepts a secondary pupil for 6.32 enrollment under this section, the institution shall send 6.33 written notice to the pupil, the pupil's school or school 6.34 district, and the commissioner of children, families, and 6.35 learning within ten days of acceptance. The notice shall 6.36 indicate the course and hours of enrollment of that pupil. If 7.1 the pupil enrolls in a course for post-secondary credit, the 7.2 institution shall notify the pupil about payment in the 7.3 customary manner used by the institution. 7.4 Sec. 5. Minnesota Statutes 1996, section 123.3514, 7.5 subdivision 4a, is amended to read: 7.6 Subd. 4a. [COUNSELING.] To the extent possible, the school 7.7 or school district shall provide counseling services to pupils 7.8 and their parents or guardian before the pupils enroll in 7.9 courses under this section to ensure that the pupils and their 7.10 parents or guardian are fully aware of the risks and possible 7.11 consequences of enrolling in post-secondary courses. The school 7.12 or school district shall provide information on the program 7.13 including who may enroll, what institutions and courses are 7.14 eligible for participation, the decision-making process for 7.15 granting academic credits, financial arrangements for tuition, 7.16 books and materials, eligibility criteria for transportation 7.17 aid, available support services, the need to arrange an 7.18 appropriate schedule, consequences of failing or not completing 7.19 a course in which the pupil enrolls, the effect of enrolling in 7.20 this program on the pupil's ability to complete the required 7.21 high school graduation requirements, and the academic and social 7.22 responsibilities that must be assumed by the pupils and their 7.23 parents or guardian. The person providing counseling shall 7.24 encourage pupils and their parents or guardian to also use 7.25 available counseling services at the post-secondary institutions 7.26 before the quarter or semester of enrollment to ensure that 7.27 anticipated plans are appropriate. 7.28 Prior to enrolling in a course, the pupil and the pupil's 7.29 parents or guardian must sign a form that must be provided by 7.30 the school or school district and may be obtained from a 7.31 post-secondary institution stating that they have received the 7.32 information specified in this subdivision and that they 7.33 understand the responsibilities that must be assumed in 7.34 enrolling in this program. The department of children, 7.35 families, and learning shall, upon request, provide technical 7.36 assistance to a school or school district in developing 8.1 appropriate forms and counseling guidelines. 8.2 Sec. 6. Minnesota Statutes 1996, section 123.3514, 8.3 subdivision 4e, is amended to read: 8.4 Subd. 4e. [COURSES ACCORDING TO AGREEMENTS.] An eligible 8.5 pupil, according to subdivision 4, may enroll in a nonsectarian 8.6 course taught by a secondary teacher or a post-secondary faculty 8.7 member and offered at a secondary school, or another location, 8.8 according to an agreement between a public school board and the 8.9 governing body of an eligible public post-secondary system or an 8.10 eligible private post-secondary institution, as defined in 8.11 subdivision 3. All provisions of this section shall apply to a 8.12 pupil, public school board, school district, and the governing 8.13 body of a post-secondary institution, except as otherwise 8.14 provided. 8.15 Sec. 7. Minnesota Statutes 1996, section 123.3514, 8.16 subdivision 6c, is amended to read: 8.17 Subd. 6c. [FINANCIAL ARRANGEMENTS FOR COURSES PROVIDED 8.18 ACCORDING TO AGREEMENTS.] (a) The agreement between a public 8.19 school board and the governing body of a public post-secondary 8.20 system or private post-secondary institution shall set forth the 8.21 payment amounts and arrangements, if any, from the public school 8.22 board to the post-secondary institution. No payments shall be 8.23 made by the department of children, families, and learning 8.24 according to subdivision 6 or 6b. For the purpose of computing 8.25 state aids for a school district, a pupil enrolled according to 8.26 subdivision 4e shall be counted in the average daily membership 8.27 of the school district as though the pupil were enrolled in a 8.28 secondary course that is not offered in connection with an 8.29 agreement. Nothing in this subdivision shall be construed to 8.30 prohibit a public post-secondary system or private 8.31 post-secondary institution from receiving additional state 8.32 funding that may be available under any other law. 8.33 (b) If a course is provided under subdivision 4e, offered 8.34 at a secondary school, and taught by a secondary teacher, the 8.35 post-secondary system or institution must not require a payment 8.36 from the school board that exceeds the cost to the 9.1 post-secondary institution that is directly attributable to 9.2 providing that course. 9.3 Sec. 8. Minnesota Statutes 1996, section 123.3514, is 9.4 amended by adding a subdivision to read: 9.5 Subd. 6d. [ALTERNATIVE PUPILS FINANCIAL ARRANGEMENTS.] For 9.6 an alternative pupil enrolled in a course or program under this 9.7 section, the department of children, families, and learning 9.8 shall make payments to the eligible institution according to 9.9 subdivision 6. The department shall not make any payments to a 9.10 school district for alternative pupils. 9.11 Sec. 9. Minnesota Statutes 1996, section 123.3514, is 9.12 amended by adding a subdivision to read: 9.13 Subd. 6e. [TUITION AT NONPUBLIC SECONDARY INSTITUTION.] A 9.14 nonpublic secondary institution must proportionately adjust its 9.15 tuition to accurately reflect the time an alternative pupil 9.16 spends in a post-secondary enrollment course or program. 9.17 Sec. 10. Minnesota Statutes 1996, section 123.39, 9.18 subdivision 6, is amended to read: 9.19 Subd. 6. For the purposes of this subdivision, a 9.20 "nonresident pupil" is a pupil who resides in one district, 9.21 defined as the "resident district" and attends school in another 9.22 district, defined as the "nonresident district." 9.23 If requested, a nonresident district mayshall transport a 9.24 nonresident pupil within its borders and may transport a 9.25 nonresident pupil within the pupil's resident district. A9.26 nonresident district may not transport a nonresident pupil on a9.27 school district owned or contractor operated school bus within9.28 the pupil's resident district without the approval of the9.29 resident district under section 120.062.9.30 The parent or guardian of a nonresident pupil attending a9.31 nonresident district under section 120.062 may submit a written9.32 request to the resident district asking that the resident9.33 district allow the nonresident district to provide9.34 transportation for the pupil within the pupil's resident9.35 district. The resident district must approve or disapprove the9.36 request, in writing, within 30 days. The parent or guardian may10.1 appeal the refusal of the resident district to the commissioner10.2 of children, families, and learning. The commissioner must act10.3 on the appeal within 30 days.If a nonresident district decides 10.4 to transport a nonresident pupil within the pupil's resident 10.5 district, the nonresident district must notify the pupil's 10.6 resident district of its decision, in writing, prior to 10.7 providing transportation. 10.8 Sec. 11. Minnesota Statutes 1996, section 124.155, 10.9 subdivision 1, is amended to read: 10.10 Subdivision 1. [AMOUNT OF ADJUSTMENT.] Each year state 10.11 aids and credits enumerated in subdivision 2 payable to any 10.12 school district for that fiscal year shall be adjusted, in the 10.13 order listed, by an amount equal to (1) the amount the district 10.14 recognized as revenue for the prior fiscal year pursuant to 10.15 section 121.904, subdivision 4a, clause (b), minus (2) the 10.16 amount the district recognizes as revenue for the current fiscal 10.17 year pursuant to section 121.904, subdivision 4a, clause (b). 10.18 For the purposes of making the aid adjustment under this 10.19 subdivision, the amount the district recognizes as revenue for 10.20 either the prior fiscal year or the current fiscal year pursuant 10.21 to section 121.904, subdivision 4a, clause (b), shall not 10.22 include any amount levied pursuant to sections 124.226,10.23 subdivision 9,124.315, subdivision 4, 124.912, subdivisions 1, 10.24 paragraph (2), 2, and 3, or a successor provision only for those10.25 districts affected,124.916, subdivisions 1 and, 2, and 3, 10.26 paragraphs 4, 5, and 6, 124.918, subdivision 6, and 124A.03, 10.27 subdivision 2 ; and Laws 1992, chapter 499, articles 1, section10.28 20, and 6, section 36. Payment from the permanent school fund 10.29 shall not be adjusted pursuant to this section. The school 10.30 district shall be notified of the amount of the adjustment made 10.31 to each payment pursuant to this section. 10.32 Sec. 12. Minnesota Statutes 1996, section 124.17, 10.33 subdivision 1d, is amended to read: 10.34 Subd. 1d. [ AFDCCOMPENSATION REVENUE PUPIL UNITS.] AFDC10.35 Compensation revenue pupil units for fiscal year 19931998 and 10.36 thereafter must be computed according to this subdivision. 11.1 (a) The AFDCcompensation revenue concentration percentage 11.2 for each building in a district equals the product of 100 times 11.3 the ratio of: 11.4 (1) the sum of the number of pupils enrolled in the 11.5 district from families receiving aid to families with dependent11.6 children according to subdivision 1ebuilding eligible to 11.7 receive free lunch plus one-half of the pupils eligible to 11.8 receive reduced priced lunch on October 1 of the previous fiscal 11.9 year; to 11.10 (2) the number of pupils in average daily membership11.11 according to subdivision 1eenrolled in the districtthe 11.12 building on October 1 of the previous fiscal year. 11.13 (b) The AFDCcompensation revenue pupil weighting factor 11.14 for a districtbuilding equals the lesser of one or the quotient 11.15 obtained by dividing the district's AFDCbuilding's compensation 11.16 revenue concentration percentage by 11.580.0. 11.17 (c) The AFDCcompensation revenue pupil units for a 11.18 district for fiscal year 1993 and thereafterbuilding equals the 11.19 product of: 11.20 (1) the sum of the number of pupils enrolled in the 11.21 district from families receiving aid to families with dependent11.22 children according to subdivision 1ebuilding eligible to 11.23 receive free lunch and one-half of the pupils eligible to 11.24 receive reduced priced lunch on October 1 of the previous fiscal 11.25 year; times 11.26 (2) the AFDCcompensation revenue pupil weighting factor 11.27 for the districtbuilding; times 11.28 (3) .67.60. 11.29 The percentages in this subdivision must be based on the 11.30 count of individual pupils and not on a building average or 11.31 minimum. 11.32 Sec. 13. Minnesota Statutes 1996, section 124.17, 11.33 subdivision 4, is amended to read: 11.34 Subd. 4. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 11.35 enrolled in a learning year program according tounder section 11.36 121.585, an area learning center according tounder sections 12.1 124C.45 and 124C.46, or an alternative program approved by the 12.2 commissioner, for more than 1,020 hours in a school year for a 12.3 secondary student and for, more than 935 hours in a school year 12.4 for an elementary student, or more than 425 hours in a school 12.5 year for a kindergarten student without a disability, that pupil 12.6 may be counted as more than one pupil in average daily 12.7 membership. The amount in excess of one pupil must be 12.8 determined by the ratio of the number of hours of instruction 12.9 provided to that pupil in excess of: (i) the greater of 1,020 12.10 hours or the number of hours required for a full-time secondary 12.11 pupil in the district to 1,020 for a secondary pupil and of; 12.12 (ii) the greater of 935 hours or the number of hours required 12.13 for a full-time elementary pupil in the district to 935 for an 12.14 elementary pupil in grades 1 through 6; and (iii) the greater of 12.15 425 hours or the number of hours required for a full-time 12.16 kindergarten student without a disability in the district to 425 12.17 for a kindergarten student without a disability. Hours that 12.18 occur after the close of the instructional year in June shall be 12.19 attributable to the following fiscal year. A kindergarten 12.20 student must not be counted as more than 1.2 pupils in average 12.21 daily membership under this subdivision. 12.22 (b)(i) To receive general education revenue for a pupil in 12.23 an alternative program that has an independent study component, 12.24 a school district must meet the requirements in this paragraph. 12.25 The school district must develop with the pupil a continual 12.26 learning plan for the pupil. A district must allow a minor 12.27 pupil's parent or guardian to participate in developing the 12.28 plan, if the parent or guardian wants to participate. The plan 12.29 must identify the learning experiences and expected outcomes 12.30 needed for satisfactory credit for the year and for graduation. 12.31 The plan must be updated each year. Each school district that 12.32 has a state-approved public alternative program must reserve 12.33 revenue in an amount equal to at least 90 percent of the 12.34 district average general education revenue per pupil unit less 12.35 compensatory revenue per pupil unit times the number of pupil 12.36 units generated by students attending a state-approved public 13.1 alternative program. The amount of reserved revenue available 13.2 under this subdivision may only be spent for program costs 13.3 associated with the state-approved public alternative program. 13.4 Compensatory revenue must be allocated according to section 13.5 124A.28, subdivision 1a. 13.6 (ii) General education revenue for a pupil in an approved 13.7 alternative program without an independent study component must 13.8 be prorated for a pupil participating for less than a full year, 13.9 or its equivalent. Each school district that has a 13.10 state-approved public alternative program must reserve revenue 13.11 in an amount equal to at least 90 percent of the district 13.12 average general education revenue per pupil unit less 13.13 compensatory revenue per pupil unit times the number of pupil 13.14 units generated by students attending a state-approved public 13.15 alternative program. The amount of reserved revenue available 13.16 under this subdivision may only be spent for program costs 13.17 associated with the state-approved public alternative program. 13.18 Compensatory revenue must be allocated according to section 13.19 124A.28, subdivision 1a. 13.20 (iii) General education revenue for a pupil in an approved 13.21 alternative program that has an independent study component must 13.22 be paid for each hour of teacher contact time and each hour of 13.23 independent study time completed toward a credit or graduation 13.24 standards necessary for graduation. Average daily membership 13.25 for a pupil shall equal the number of hours of teacher contact 13.26 time and independent study time divided by 1,020. 13.27 (iv) For an alternative program having an independent study 13.28 component, the commissioner shall require a description of the 13.29 courses in the program, the kinds of independent study involved, 13.30 the expected learning outcomes of the courses, and the means of 13.31 measuring student performance against the expected outcomes. 13.32 Sec. 14. Minnesota Statutes 1996, section 124.17, is 13.33 amended by adding a subdivision to read: 13.34 Subd. 6. [FREE AND REDUCED PRICED LUNCHES.] The 13.35 commissioner shall determine the number of children eligible to 13.36 receive either a free or reduced priced lunch on October 1 each 14.1 year. The commissioner may use federal definitions for these 14.2 purposes and may adjust these definitions as appropriate. The 14.3 commissioner may adopt reporting guidelines to assure accuracy 14.4 of data counts and eligibility. Districts shall use any 14.5 guidelines adopted by the commissioner. 14.6 Sec. 15. Minnesota Statutes 1996, section 124.195, 14.7 subdivision 2, is amended to read: 14.8 Subd. 2. [DEFINITIONS.] (a) The term "other district 14.9 receipts" means payments by county treasurers pursuant to 14.10 section 276.10, apportionments from the school endowment fund 14.11 pursuant to section 124.09, apportionments by the county auditor 14.12 pursuant to section 124.10, subdivision 2, and payments to 14.13 school districts by the commissioner of revenue pursuant to 14.14 chapter 298. 14.15 (b) The term "cumulative amount guaranteed" means the sum 14.16 of the following: 14.17 (1) one-third of the final adjustment payment according to 14.18 subdivision 6; plus 14.19 (2) the product of 14.20 (i) the cumulative disbursement percentage shown in 14.21 subdivision 3; times 14.22 (ii) the sum of 14.23 8590 percent of the estimated aid and credit entitlements 14.24 paid according to subdivision 10; plus 14.25 100 percent of the entitlements paid according to 14.26 subdivisions 8 and 9; plus 14.27 the other district receipts; plus 14.28 the final adjustment payment according to subdivision 6. 14.29 (c) The term "payment date" means the date on which state 14.30 payments to school districts are made by the electronic funds 14.31 transfer method. If a payment date falls on a Saturday, a 14.32 Sunday, or a weekday which is a legal holiday, the payment shall 14.33 be made on the immediately following business day. The 14.34 commissioner of children, families, and learning may make 14.35 payments on dates other than those listed in subdivision 3, but 14.36 only for portions of payments from any preceding payment dates 15.1 which could not be processed by the electronic funds transfer 15.2 method due to documented extenuating circumstances. 15.3 Sec. 16. Minnesota Statutes 1996, section 124.195, 15.4 subdivision 7, is amended to read: 15.5 Subd. 7. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 15.6 fiscal year state general fund payments for a district 15.7 nonoperating fund shall be made at 8590 percent of the 15.8 estimated entitlement during the fiscal year of the entitlement ,15.9 unless a higher rate has been established according to section15.10 121.904, subdivision 4d. This amount shall be paid in 12 equal 15.11 monthly installments. The amount of the actual entitlement, 15.12 after adjustment for actual data, minus the payments made during 15.13 the fiscal year of the entitlement shall be paid prior to 15.14 October 31 of the following school year. The commissioner may 15.15 make advance payments of homestead and agricultural credit aid 15.16 for a district's debt service fund earlier than would occur 15.17 under the preceding schedule if the district submits evidence 15.18 showing a serious cash flow problem in the fund. The 15.19 commissioner may make earlier payments during the year and, if 15.20 necessary, increase the percent of the entitlement paid to 15.21 reduce the cash flow problem. 15.22 Sec. 17. Minnesota Statutes 1996, section 124.195, 15.23 subdivision 10, is amended to read: 15.24 Subd. 10. [AID PAYMENT PERCENTAGE.] Except as provided in 15.25 subdivisions 8, 9, and 11, each fiscal year, all education aids 15.26 and credits in this chapter and chapters 121, 123, 124A, 124B, 15.27 125, 126, 134, and section 273.1392, shall be paid at 90 percent 15.28 for districts operating a program under section 121.585 for15.29 grades 1 to 12 for all students in the district and 85 percent15.30 for other districtsof the estimated entitlement during the 15.31 fiscal year of the entitlement , unless a higher rate has been15.32 established according to section 121.904, subdivision 4d.15.33 Districts operating a program under section 121.585 for grades 115.34 to 12 for all students in the district shall receive 85 percent15.35 of the estimated entitlement plus an additional amount of15.36 general education aid equal to five percent of the estimated16.1 entitlement. For all districts,. The final adjustment payment, 16.2 according to subdivision 6, shall be the amount of the actual 16.3 entitlement, after adjustment for actual data, minus the 16.4 payments made during the fiscal year of the entitlement. 16.5 Sec. 18. Minnesota Statutes 1996, section 124.195, 16.6 subdivision 11, is amended to read: 16.7 Subd. 11. [NONPUBLIC AIDS.] The state shall pay aid 16.8 according to sections 123.931 to 123.947 for pupils attending 16.9 nonpublic schools as follows: 16.10 (1) an advance payment by November 30 equal to 8590 16.11 percent of the estimated entitlement for the current fiscal 16.12 year; and 16.13 (2) a final payment by October 31 of the following fiscal 16.14 year, adjusted for actual data. 16.15 If a payment advance to meet cash flow needs is requested 16.16 by a district and approved by the commissioner, the state shall 16.17 pay basicnonpublic pupil transportation aid according to 16.18 section 124.225 attributable to pupils attending nonpublic16.19 schoolsby October 31. 16.20 Sec. 19. Minnesota Statutes 1996, section 124.225, 16.21 subdivision 1, is amended to read: 16.22 Subdivision 1. [DEFINITIONS.] For purposes of this section 16.23 and section 124.3201, the terms defined in this subdivision have 16.24 the meanings given to them. 16.25 (a) "FTE" means a full-time equivalent pupil whose16.26 transportation is authorized for aid purposes by section 188.8.131.52 (b) "Authorized cost for regular transportation"16.28 means"Actual expenditure per pupil transported in the regular 16.29 and excess transportation categories" means the quotient 16.30 obtained by dividing: 16.31 (1) the sum of: 16.32 (1)(i) all expenditures for transportation in the regular 16.33 category, as defined in paragraph (c)(b), clause (1), for which16.34 aid is authorized in section 124.223and the excess category, as 16.35 defined in paragraph (b), clause (2), plus 16.36 (2)(ii) an amount equal to one year's depreciation on the 17.1 district's school bus fleet and mobile units computed on a 17.2 straight line basis at the rate of 15 percent per year for 17.3 districts operating a program under section 121.585 for grades 1 17.4 to 12 for all students in the district and 12-1/2 percent per 17.5 year for other districts of the cost of the fleet, plus 17.6 (3) an amount equal to one year's depreciation on district17.7 school buses reconditioned by the department of corrections17.8 computed on a straight line basis at the rate of 33-1/3 percent17.9 per year of the cost to the district of the reconditioning, plus17.10 (4)(iii) an amount equal to one year's depreciation on the 17.11 district's type three school buses, as defined in section 17.12 169.01, subdivision 6, clause (5), which must be used a majority 17.13 of the time for thepupil transportation purposes in sections17.14 124.223 and 124.226, subdivisions 5, 8, and 9, and were17.15 purchased after July 1, 1982, for authorized transportation of17.16 pupils, computed on a straight line basis at the rate of 20 17.17 percent per year of the cost of the type three school buses by: 17.18 (2) the number of pupils eligible for transportation in the 17.19 regular category, as defined in paragraph (b), clause (1), and 17.20 the excess category, as defined in paragraph (b), clause (2). 17.21 (c)(b) "Transportation category" means a category of 17.22 transportation service provided to pupils as follows: 17.23 (1) Regular transportation is transportation services17.24 provided during the regular school year under section 124.223,17.25 subdivisions 1 and 2, excluding the following transportation17.26 services provided under section 124.223, subdivision 1:17.27 transportation between schools; transportation to and from17.28 service-learning programs; noon transportation to and from17.29 school for kindergarten pupils attending half-day sessions;17.30 transportation of pupils to and from schools located outside17.31 their normal attendance areas under the provisions of a plan for17.32 desegregation mandated by the state board of education or under17.33 court order; and transportation of elementary pupils to and from17.34 school within a mobility zone.: 17.35 (i) transportation to and from school during the regular 17.36 school year for resident elementary pupils residing one mile or 18.1 more from the public or nonpublic school they attend, and 18.2 resident secondary pupils residing two miles or more from the 18.3 public or nonpublic school they attend, excluding desegregation 18.4 transportation and noon kindergarten transportation; but with 18.5 respect to transportation of pupils to and from nonpublic 18.6 schools, only to the extent permitted by sections 123.76 to 18.7 123.79; 18.8 (ii) transportation of resident pupils to and from language 18.9 immersion programs; 18.10 (iii) transportation of a pupil who is a custodial parent 18.11 and that pupil's child between the pupil's home and the child 18.12 care provider and between the provider and the school, if the 18.13 home and provider are within the attendance area of the school; 18.14 and 18.15 (iv) transportation to and from or board and lodging in 18.16 another district, of resident pupils of a district without a 18.17 secondary school. 18.18 For the purposes of this paragraph, a district may 18.19 designate a licensed day care facility, respite care facility, 18.20 the residence of a relative, or the residence of a person chosen 18.21 by the pupil's parent or guardian as the home of a pupil for 18.22 part or all of the day, if requested by the pupil's parent or 18.23 guardian, and if that facility or residence is within the 18.24 attendance area of the school the pupil attends. 18.25 (2) Nonregular transportation is transportation services18.26 provided under section 124.223, subdivision 1, that are excluded18.27 from the regular category and transportation services provided18.28 under section 124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10.18.29 (3)Excess transportation is transportation to and from 18.30 school during the regular school year for secondary pupils 18.31 residing at least one mile but less than two miles from the 18.32 public school they could attendor from thenonpublic school 18.33 actually attendedthey attend, and transportation to and from 18.34 school for pupils residing less than one mile from school who 18.35 are transported because of extraordinary traffic, drug, or crime 18.36 hazards. 19.1 (4)(3) Desegregation transportation is transportation 19.2 within and outside of the district during the regular school 19.3 year of pupils to and from schools located outside their normal 19.4 attendance areas under a plan for desegregation mandated by the 19.5 state board or under court order. 19.6 (5) Handicapped transportation is transportation provided19.7 under section 124.223, subdivision 4, for pupils with a19.8 disability between home or a respite care facility and school or19.9 other buildings where special instruction required by sections19.10 120.17 and 120.1701 is provided.19.11 (4) "Transportation services for pupils with disabilities" 19.12 is: 19.13 (i) transportation of pupils with disabilities who cannot 19.14 be transported on a regular school bus between home or a respite 19.15 care facility and school; 19.16 (ii) necessary transportation of pupils with disabilities 19.17 from home or from school to other buildings, including centers 19.18 such as developmental achievement centers, hospitals, and 19.19 treatment centers where special instruction or services required 19.20 by sections 120.17 and 120.1701 are provided, within or outside 19.21 the district where services are provided; 19.22 (iii) necessary transportation for resident pupils with 19.23 disabilities required by sections 120.17, subdivision 4a, and 19.24 120.1701; 19.25 (iv) board and lodging for pupils with disabilities in a 19.26 district maintaining special classes; 19.27 (v) transportation from one educational facility to another 19.28 within the district for resident pupils enrolled on a 19.29 shared-time basis in educational programs, and necessary 19.30 transportation required by sections 120.17, subdivision 9, and 19.31 120.1701, for resident pupils with disabilities who are provided 19.32 special instruction and services on a shared-time basis; 19.33 (vi) transportation for resident pupils with disabilities 19.34 to and from board and lodging facilities when the pupil is 19.35 boarded and lodged for educational purposes; and 19.36 (vii) services described in clauses (i) to (vi), when 20.1 provided for pupils with disabilities in conjunction with a 20.2 summer instructional program that relates to the pupil's 20.3 individual education plan or in conjunction with a learning year 20.4 program established under section 121.585. 20.5 (5) "Nonpublic nonregular transportation" is: 20.6 (i) transportation from one educational facility to another 20.7 within the district for resident pupils enrolled on a 20.8 shared-time basis in educational programs, excluding 20.9 transportation for nonpublic pupils with disabilities under 20.10 clause (4); 20.11 (ii) transportation within district boundaries between a 20.12 nonpublic school and a public school or a neutral site for 20.13 nonpublic school pupils who are provided pupil support services 20.14 pursuant to section 123.935; and 20.15 (iii) late transportation home from school or between 20.16 schools within a district for nonpublic school pupils involved 20.17 in after-school activities. 20.18 (d)(c) "Mobile unit" means a vehicle or trailer designed 20.19 to provide facilities for educational programs and services, 20.20 including diagnostic testing, guidance and counseling services, 20.21 and health services. A mobile unit located off nonpublic school 20.22 premises is a neutral site as defined in section 123.932, 20.23 subdivision 9. 20.24 (e) "Current year" means the school year for which aid will20.25 be paid.20.26 (f) "Base year" means the second school year preceding the20.27 school year for which aid will be paid.20.28 (g) "Base cost" means the ratio of:20.29 (1) the sum of the authorized cost in the base year for20.30 regular transportation as defined in paragraph (b) plus the20.31 actual cost in the base year for excess transportation as20.32 defined in paragraph (c);20.33 (2) to the sum of the number of weighted FTE's in the20.34 regular and excess categories in the base year.20.35 (h) "Pupil weighting factor" for the excess transportation20.36 category for a school district means the lesser of one, or the21.1 result of the following computation:21.2 (1) Divide the square mile area of the school district by21.3 the number of FTE's in the regular and excess categories in the21.4 base year.21.5 (2) Raise the result in clause (1) to the one-fifth power.21.6 (3) Divide four-tenths by the result in clause (2).21.7 The pupil weighting factor for the regular transportation21.8 category is one.21.9 (i) "Weighted FTE's" means the number of FTE's in each21.10 transportation category multiplied by the pupil weighting factor21.11 for that category.21.12 (j) "Sparsity index" for a school district means the21.13 greater of .005 or the ratio of the square mile area of the21.14 school district to the sum of the number of weighted FTE's by21.15 the district in the regular and excess categories in the base21.16 year.21.17 (k) "Density index" for a school district means the greater21.18 of one or the result obtained by subtracting the product of the21.19 district's sparsity index times 20 from two.21.20 (l) "Contract transportation index" for a school district21.21 means the greater of one or the result of the following21.22 computation:21.23 (1) Multiply the district's sparsity index by 20.21.24 (2) Select the lesser of one or the result in clause (1).21.25 (3) Multiply the district's percentage of regular FTE's in21.26 the current year using vehicles that are not owned by the school21.27 district by the result in clause (2).21.28 (m) "Adjusted predicted base cost" means the predicted base21.29 cost as computed in subdivision 3a as adjusted under subdivision21.30 7a.21.31 (n) "Regular transportation allowance" means the adjusted21.32 predicted base cost, inflated and adjusted under subdivision 7b.21.33 Sec. 20. Minnesota Statutes 1996, section 124.225, 21.34 subdivision 13, is amended to read: 21.35 Subd. 13. [TARGETED NEEDS TRANSPORTATION REVENUE.] A 21.36 district's targeted needs transportation revenue for the 22.1 1996-1997 and later1997-1998 school years equals the sum of the 22.2 special programs transportation revenue according to subdivision 22.3 14, the integration transportation revenue according to 22.4 subdivision 15, and the nonpublic pupil transportation revenue22.5 aid according to subdivision 16. 22.6 Sec. 21. Minnesota Statutes 1996, section 124.225, 22.7 subdivision 14, is amended to read: 22.8 Subd. 14. [SPECIAL PROGRAMS TRANSPORTATION REVENUE.] A 22.9 district's special programs transportation revenue for the 22.10 1996-1997 and later1997-1998 school years equals the sum of: 22.11 (a) the district's actual cost in the base year for 22.12 transportation services for children with disabilities under 22.13 section 124.223, subdivisions 4, 5, 7, and 8subdivision 1, 22.14 paragraph (b), clause (4), times the ratio of the district's 22.15 average daily membership for the current school year to the 22.16 district's average daily membership for the base year; plus 22.17 (b) the greater of zero or 80 percent of the difference 22.18 between: 22.19 (1) the district's actual cost in the current year for 22.20 transportation services for children with disabilities under 22.21 section 124.223, subdivisions 4, 5, 7, and 8subdivision 1, 22.22 paragraph (b), clause (4); and 22.23 (2) the amount computed in paragraph (a). 22.24 Sec. 22. Minnesota Statutes 1996, section 124.225, 22.25 subdivision 15, is amended to read: 22.26 Subd. 15. [INTEGRATION TRANSPORTATION REVENUE.] A 22.27 district's integration transportation revenue for the 1996-1997 22.28 and later1997-1998 school years equals the following amounts: 22.29 (a) for independent school district No. 709, Duluth, $4 22.30 times the actual pupil units for the school year; 22.31 (b) for independent school district No. 625, St. Paul, $73 22.32 times the actual pupil units for the school year; and 22.33 (c) for special school district No. 1, Minneapolis, $158 22.34 times the actual pupil units for the school year. 22.35 Sec. 23. Minnesota Statutes 1996, section 124.225, 22.36 subdivision 16, is amended to read: 23.1 Subd. 16. [NONPUBLIC PUPIL TRANSPORTATION REVENUEAID.] 23.2 (a) A district's nonpublic pupil transportation revenueaid for 23.3 the 1996-1997 and later school years for transportation services 23.4 for nonpublic school pupils according to sections 123.39, 123.76 23.5 to 123.78, 124.223,and 124.226this section, equals the sum of 23.6 the amounts computed in paragraphs (b) and (c). This revenue23.7 aid does not limit the obligation to transport pupils under 23.8 sections 123.76 to 123.79. 23.9 (b) For regular and excess transportation according to 23.10 section 124.225,subdivision 1, paragraph (c)(b), clauses (1) 23.11 and (3)(2), an amount equal to the product of: 23.12 (1) the district's actual expenditure per pupil transported 23.13 in the regular and excess transportation categories during the 23.14 second preceding school year; times 23.15 (2) the number of nonpublic school pupils residing in the 23.16 district who receive regular or excess transportation service or 23.17 reimbursement for the current school year; times 23.18 (3) the ratio of the formula allowance pursuant to section 23.19 124A.22, subdivision 2, for the current school year to the 23.20 formula allowance pursuant to section 124A.22, subdivision 2, 23.21 for the second preceding school year. 23.22 (c) For nonpublic nonregular transportation according to 23.23 section 124.225,subdivision 1, paragraph (c)(b), 23.24 clause (2)(5), excluding transportation services for children23.25 with disabilities under section 124.223, subdivisions 4, 5, 7,23.26 and 8, and late activity transportation according to section23.27 124.226, subdivision 9,an amount equal to the product of: 23.28 (1) the district's actual expenditure for nonpublic 23.29 nonregular and late activitytransportation for nonpublic school23.30 pupilsduring the second preceding school year; times 23.31 (2) the ratio of the formula allowance pursuant to section 23.32 124A.22, subdivision 2, for the current school year to the 23.33 formula allowance pursuant to section 124A.22, subdivision 2, 23.34 for the second preceding school year. 23.35 (d) Notwithstanding the amount of the formula allowance for 23.36 fiscal years 1997 and 1998 in section 124A.22, subdivision 2, 24.1 the commissioner shall use the amount of the formula 24.2 allowance for the current year less $300 in determining the 24.3 nonpublic pupil transportation revenue in paragraphs (b) and (c) 24.4 for fiscal years 1997 and 1998. 24.5 Sec. 24. Minnesota Statutes 1996, section 124.225, 24.6 subdivision 17, is amended to read: 24.7 Subd. 17. [TARGETED NEEDS TRANSPORTATION AID.] (a) For 24.8 fiscal years 1997 and 1998, a district's targeted needs 24.9 transportation aid is the difference between its targeted needs 24.10 transportation revenue under subdivision 13 and its targeted 24.11 needs transportation levy under section 124.226, subdivision 10. 24.12 (b) If a district does not levy the entire amount 24.13 permitted, aid must be reduced in proportion to the actual 24.14 amount levied. 24.15 Sec. 25. Minnesota Statutes 1996, section 124.226, 24.16 subdivision 10, is amended to read: 24.17 Subd. 10. [TARGETED NEEDS TRANSPORTATION LEVY.] A school 24.18 district may make a levy for targeted needs transportation costs 24.19 according to this subdivision. The amount of the levy shall be 24.20 the result of the following computation: 24.21 (1) For fiscal yearyears 1997 and later1998, targeted 24.22 needs transportation levy equalization revenue equals 28 percent 24.23 of the sum of the district's special programs transportation 24.24 revenue under section 124.225, subdivision 14, and the 24.25 district's integration transportation revenue under section 24.26 124.225, subdivision 15. 24.27 (2) The targeted needs transportation levy equals the 24.28 result in clause (1) times the lesser of one or the ratio of (i) 24.29 the quotient derived by dividing the adjusted net tax capacity 24.30 of the district for the year before the year the levy is 24.31 certified by the actual pupil units in the district for the 24.32 school year to which the levy is attributable, to (ii) $3,540. 24.33 Sec. 26. Minnesota Statutes 1996, section 124.912, 24.34 subdivision 1, is amended to read: 24.35 Subdivision 1. [STATUTORY OBLIGATIONS.] (a)A school 24.36 district may levy: 25.1 (1) the amount authorized for liabilities of dissolved 25.2 districts pursuant to section 122.45; 25.3 (2) the amounts necessary to pay the district's obligations 25.4 under section 268.06, subdivision 25 ;and the amounts necessary 25.5 to pay for job placement services offered to employees who may 25.6 become eligible for benefits pursuant to section 268.08 for the 25.7 fiscal year the levy is certified; 25.8 (3) the amounts necessary to pay the district's obligations 25.9 under section 127.05; 25.10 (4) the amounts authorized by section 122.531; 25.11 (5) the amounts necessary to pay the district's obligations 25.12 under section 122.533; and 25.13 (6) for severance pay required by sections 120.08, 25.14 subdivision 3, and 122.535, subdivision 6. 25.15 (b) Each year, a member district of an education district25.16 that levies under this subdivision must transfer the amount of25.17 revenue certified under paragraph (b) to the education district25.18 board according to this subdivision. By June 20 and November 3025.19 of each year, an amount must be transferred equal to:25.20 (1) 50 percent times25.21 (2) the amount certified in paragraph (b) minus homestead25.22 and agricultural credit aid allocated for that levy according to25.23 section 273.1398, subdivision 6.25.24 Sec. 27. Minnesota Statutes 1996, section 124.912, 25.25 subdivision 2, is amended to read: 25.26 Subd. 2. [DESEGREGATION.] Each year, special school 25.27 district No. 1, Minneapolis, may levy an amount not to exceed 25.28 $197 times its actual pupil units for that fiscal year; 25.29 independent school district No. 625, St. Paul, may levy an 25.30 amount not to exceed $197 times its actual pupil units for that 25.31 fiscal year; and independent school district No. 709, Duluth, 25.32 may levy an amount not to exceed the sum of $660,000 and the 25.33 amount raised by a tax rate of 2.0 percent times the adjusted 25.34 net tax capacity of the district. Notwithstanding section25.35 121.904, the entire amount of this levy shall be recognized as25.36 revenue for the fiscal year in which the levy is certified.26.1 This levy shall not be considered in computing the aid reduction26.2 under section 184.108.40.206 Sec. 28. Minnesota Statutes 1996, section 124.912, 26.4 subdivision 3, is amended to read: 26.5 Subd. 3. [RULE COMPLIANCE.] Each year a district that is 26.6 required to implement a plan according to the requirements of 26.7 Minnesota Rules, parts 3535.0200 to 3535.2200, may levy an 26.8 amount not to exceed a net tax rate of 2.0 percent times the 26.9 adjusted net tax capacity of the district for taxes payable in 26.10 1991 and thereafter. A district that levies according to 26.11 subdivision 2 may not levy according to this subdivision. 26.12 Notwithstanding section 121.904, the entire amount of this levy26.13 shall be recognized as revenue for the fiscal year in which the26.14 levy is certified. This levy shall not be considered in26.15 computing the aid reduction under section 220.127.116.11 Sec. 29. Minnesota Statutes 1996, section 124.916, 26.17 subdivision 1, is amended to read: 26.18 Subdivision 1. [HEALTH INSURANCE.] (a) A school district 26.19 may levy the amount necessary to make employer contributions for 26.20 insurance for retired employees under this 26.21 subdivision. Notwithstanding section 121.904, 50 percent of the26.22 amount levied shall be recognized as revenue for the fiscal year26.23 in which the levy is certified. This levy shall not be26.24 considered in computing the aid reduction under section 18.104.22.168 (b) The school board of a joint vocational technical 26.26 district formed under sections 136C.60 to 136C.69 and the school 26.27 board of a school district may provide employer-paid hospital, 26.28 medical, and dental benefits to a person who: 26.29 (1) is eligible for employer-paid insurance under 26.30 collective bargaining agreements or personnel plans in effect on 26.31 June 30, 1992; 26.32 (2) has at least 25 years of service credit in the public 26.33 pension plan of which the person is a member on the day before 26.34 retirement or, in the case of a teacher, has a total of at least 26.35 25 years of service credit in the teachers retirement 26.36 association, a first-class city teacher retirement fund, or any 27.1 combination of these; 27.2 (3) upon retirement is immediately eligible for a 27.3 retirement annuity; 27.4 (4) is at least 55 and not yet 65 years of age; and 27.5 (5) retires on or after May 15, 1992, and before July 21, 27.6 1992. 27.7 A school board paying insurance under this subdivision may 27.8 not exclude any eligible employees. 27.9 (c) An employee who is eligible both for the health 27.10 insurance benefit under this subdivision and for an early 27.11 retirement incentive under a collective bargaining agreement or 27.12 personnel plan established by the employer must select either 27.13 the early retirement incentive provided under the collective 27.14 bargaining agreement personnel plan or the incentive provided 27.15 under this subdivision, but may not receive both. For purposes 27.16 of this subdivision, a person retires when the person terminates 27.17 active employment and applies for retirement benefits. The 27.18 retired employee is eligible for single and dependent coverages 27.19 and employer payments to which the person was entitled 27.20 immediately before retirement, subject to any changes in 27.21 coverage and employer and employee payments through collective 27.22 bargaining or personnel plans, for employees in positions 27.23 equivalent to the position from which the employee retired. The 27.24 retired employee is not eligible for employer-paid life 27.25 insurance. Eligibility ceases when the retired employee attains 27.26 the age of 65, or when the employee chooses not to receive the 27.27 retirement benefits for which the employee has applied, or when 27.28 the employee is eligible for employer-paid health insurance from 27.29 a new employer. Coverages must be coordinated with relevant 27.30 health insurance benefits provided through the federally 27.31 sponsored Medicare program. 27.32 (d) Unilateral implementation of this section by a public 27.33 employer is not an unfair labor practice for purposes of chapter 27.34 179A. The authority provided in this subdivision for an 27.35 employer to pay health insurance costs for certain retired 27.36 employees is not subject to the limits in section 179A.20, 28.1 subdivision 2a. 28.2 (e) If a school district levies according to this 28.3 subdivision, it may not also levy according to section 122.531, 28.4 subdivision 9, for eligible employees. 28.5 Sec. 30. Minnesota Statutes 1996, section 124.916, 28.6 subdivision 2, is amended to read: 28.7 Subd. 2. [RETIRED EMPLOYEE HEALTH BENEFITS.] For taxes 28.8 payable in 1996, 1997, 1998, and 1999 only, a school district 28.9 may levy an amount up to the amount the district is required by 28.10 the collective bargaining agreement in effect on March 30, 1992, 28.11 to pay for health insurance or unreimbursed medical expenses for 28.12 licensed and nonlicensed employees who have terminated services 28.13 in the employing district and withdrawn from active teaching 28.14 service or other active service, as applicable, before July 1, 28.15 1992. The total amount of the levy each year may not exceed 28.16 $300,000. 28.17 Notwithstanding section 121.904, 50 percent of the proceeds28.18 of this levy shall be recognized in the fiscal year in which it28.19 is certified.28.20 Sec. 31. Minnesota Statutes 1996, section 124.916, 28.21 subdivision 3, is amended to read: 28.22 Subd. 3. [RETIREMENT LEVIES.] (1) In addition to the 28.23 excess levy authorized in 1976 any district within a city of the 28.24 first class which was authorized in 1975 to make a retirement 28.25 levy under Minnesota Statutes 1974, section 275.127 and chapter 28.26 422A may levy an amount per pupil unit which is equal to the 28.27 amount levied in 1975 payable 1976, under Minnesota Statutes 28.28 1974, section 275.127 and chapter 422A, divided by the number of 28.29 pupil units in the district in 1976-1977. 28.30 (2) In 1979 and each year thereafter, any district which 28.31 qualified in 1976 for an extra levy under paragraph (1) shall be 28.32 allowed to levy the same amount as levied for retirement in 1978 28.33 under this clause reduced each year by ten percent of the 28.34 difference between the amount levied for retirement in 1971 28.35 under Minnesota Statutes 1971, sections 275.127 and 422.01 to 28.36 422.54 and the amount levied for retirement in 1975 under 29.1 Minnesota Statutes 1974, section 275.127 and chapter 422A. 29.2 (3) In 1991 and each year thereafter, a district to which 29.3 this subdivision applies may levy an additional amount required 29.4 for contributions to the Minneapolis employees retirement fund 29.5 as a result of the maximum dollar amount limitation on state 29.6 contributions to the fund imposed under section 422A.101, 29.7 subdivision 3. The additional levy shall not exceed the most 29.8 recent amount certified by the board of the Minneapolis 29.9 employees retirement fund as the district's share of the 29.10 contribution requirement in excess of the maximum state 29.11 contribution under section 422A.101, subdivision 3. 29.12 (4) For taxes payable in 1994 and thereafter, special 29.13 school district No. 1, Minneapolis, and independent school 29.14 district No. 625, St. Paul, may levy for the increase in the 29.15 employer retirement fund contributions, under Laws 1992, chapter 29.16 598, article 5, section 1. Notwithstanding section 121.904, the29.17 entire amount of this levy may be recognized as revenue for the29.18 fiscal year in which the levy is certified. This levy shall not29.19 be considered in computing the aid reduction under section29.20 22.214.171.124 (5) If the employer retirement fund contributions under 29.22 section 354A.12, subdivision 2a, are increased for fiscal year 29.23 1994 or later fiscal years, special school district No. 1, 29.24 Minneapolis, and independent school district No. 625, St. Paul, 29.25 may levy in payable 1994 or later an amount equal to the amount 29.26 derived by applying the net increase in the employer retirement 29.27 fund contribution rate of the respective teacher retirement fund 29.28 association between fiscal year 1993 and the fiscal year 29.29 beginning in the year after the levy is certified to the total 29.30 covered payroll of the applicable teacher retirement fund 29.31 association. Notwithstanding section 121.904, the entire amount29.32 of this levy may be recognized as revenue for the fiscal year in29.33 which the levy is certified. This levy shall not be considered29.34 in computing the aid reduction under section 124.155.If an 29.35 applicable school district levies under this paragraph, they may 29.36 not levy under paragraph (4). 30.1 (6) In addition to the levy authorized under paragraph (5), 30.2 special school district No. 1, Minneapolis, may also levy 30.3 payable in 1997 or later an amount equal to the contributions 30.4 under section 423A.02, subdivision 3, and may also levy in 30.5 payable 1994 or later an amount equal to the state aid 30.6 contribution under section 354A.12, subdivision 3b. Independent 30.7 school district No. 625, St. Paul, may levy payable in 1997 or 30.8 later an amount equal to the supplemental contributions under 30.9 section 423A.02, subdivision 3. Notwithstanding section30.10 121.904, the entire amount of these levies may be recognized as30.11 revenue for the fiscal year in which the levy is certified.30.12 These levies shall not be considered in computing the aid30.13 reduction under section 126.96.36.199 Sec. 32. Minnesota Statutes 1996, section 124.918, 30.15 subdivision 6, is amended to read: 30.16 Subd. 6. [ADJUSTMENTS FOR LAW CHANGES.] Whenever a change 30.17 enacted in law changes the levy authority for a school district 30.18 or an intermediate school district for a fiscal year after the 30.19 levy for that fiscal year has been certified by the district 30.20 under section 275.07, the department of children, families, and 30.21 learning shall adjust the next levy certified by the district by 30.22 the amount of the change in levy authority for that fiscal year 30.23 resulting from the change. Notwithstanding section 121.904, the 30.24 entire amount for fiscal year 1992 and 50 percent for fiscal30.25 years thereafterof the levy adjustment must be recognized as 30.26 revenue in the fiscal year the levy is certified, if sufficient 30.27 levy resources are available under generally accepted accounting 30.28 principles in the district fund where the adjustment is to 30.29 occur. School districts that do not have sufficient levy 30.30 resources available in the fund where the adjustment is to occur 30.31 shall recognize in the fiscal year the levy is certified an 30.32 amount equal to the levy resources available. The remaining 30.33 adjustment amount shall be recognized as revenue in the fiscal 30.34 year after the levy is certified. 30.35 Sec. 33. Minnesota Statutes 1996, section 124A.03, 30.36 subdivision 1c, is amended to read: 31.1 Subd. 1c. [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 31.2 subdivision 1b, a district's referendum allowance must not 31.3 exceed the greater of: 31.4 (1) the district's referendum allowance for fiscal year 31.5 1994; or31.6 (2) 25 percent of the formula allowance minus $300 for 31.7 fiscal year 1997 and later; or 31.8 (3) for a newly reorganized district created after July 1, 31.9 1994, the sum of the referendum revenue authority for the 31.10 reorganizing districts for the fiscal year preceding the 31.11 reorganization, divided by the sum of the actual pupil units of 31.12 the reorganizing districts for the fiscal year preceding the 31.13 reorganization. 31.14 Sec. 34. Minnesota Statutes 1996, section 124A.03, 31.15 subdivision 1g, is amended to read: 31.16 Subd. 1g. [REFERENDUM EQUALIZATION LEVY.] (a) For fiscal31.17 year 1996, a district's referendum equalization levy equals the31.18 district's referendum equalization revenue times the lesser of31.19 one or the ratio of the district's adjusted net tax capacity per31.20 actual pupil unit to 100 percent of the equalizing factor as31.21 defined in section 124A.02, subdivision 8.31.22 (b)For fiscal year 19971999 and thereafter, a district's 31.23 referendum equalization levy for a referendum levied against the 31.24 referendum market value of all taxable property as defined in 31.25 section 124A.02, subdivision 3b, equals the district's 31.26 referendum equalization revenue times the lesser of one or the 31.27 ratio of the district's referendum market value per actual pupil 31.28 unit to $476,000. 31.29 (c)(b) For fiscal year 19971999 and thereafter, a 31.30 district's referendum equalization levy for a referendum levied 31.31 against the net tax capacity of all taxable property equals the 31.32 district's referendum equalization revenue times the lesser of 31.33 one or the ratio of the district's adjusted net tax capacity per 31.34 actual pupil unit to 100 percent of the equalizing factor for31.35 that year$10,000. 31.36 Sec. 35. Minnesota Statutes 1996, section 124A.04, 32.1 subdivision 2, is amended to read: 32.2 Subd. 2. [ 19931999 AND LATER.] The training and 32.3 experience index for fiscal year 1999 and later must be 32.4 constructed in the following manner: 32.5 (a) The department shall construct a matrix that classifies 32.6 teachers by the extent of training received in accredited 32.7 institutions of higher education and by the years of experience 32.8 that districts take into account in determining teacher salaries. 32.9 (b) The average salary for each cell of the matrix must be 32.10 computed as follows using data from the second year of the32.11 previous bienniumfiscal year 1997: 32.12 (1) For each school district, multiply the salary paid to 32.13 full-time equivalent teachers with that combination of training 32.14 and experience according to the district's teacher salary 32.15 schedule by the number of actual pupil units in that district. 32.16 (2) Add the amounts computed in clause (1) for all 32.17 districts in the state and divide the resulting sum by the total 32.18 number of actual pupil units in all districts in the state that 32.19 employ teachers. 32.20 (c) For each cell in the matrix, compute the ratio of the 32.21 average salary in that cell to the average salary for all 32.22 teachers in the state during fiscal year 1997. 32.23 (d) The index for each district that employs teachers 32.24 equals the sum of: (i) for teachers employed in that district 32.25 during fiscal year 1997 and the current fiscal year, the ratios 32.26 for each teacher computed using data for fiscal year 1997; and 32.27 (ii) for teachers employed in that district during the current 32.28 fiscal year but not during fiscal year 1997, the ratio for 32.29 teachers who are in their first year of teaching and who have no 32.30 additional credits or degrees above a bachelor's degree divided 32.31 by the number of teachers in that district. The index for a 32.32 district that employs no teachers is zero. 32.33 Sec. 36. Minnesota Statutes 1996, section 124A.22, 32.34 subdivision 1, is amended to read: 32.35 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) For fiscal32.36 year 1996, the general education revenue for each district33.1 equals the sum of the district's basic revenue, compensatory33.2 education revenue, training and experience revenue, secondary33.3 sparsity revenue, elementary sparsity revenue, and supplemental33.4 revenue.33.5 (b)For fiscal yearyears 1997 and thereafter1998, the 33.6 general education revenue for each district equals the sum of 33.7 the district's basic revenue, compensatory education revenue, 33.8 secondary sparsity revenue, elementary sparsity revenue, 33.9 transportation sparsity revenue, total operating capital 33.10 revenue, transition revenue, and supplemental revenue. 33.11 (b) For fiscal year 1999 and thereafter, the general 33.12 education revenue for each district equals the sum of the 33.13 district's basic revenue, basic skills revenue, training and 33.14 experience revenue, secondary sparsity revenue, elementary 33.15 sparsity revenue, transportation sparsity revenue, total 33.16 operating capital revenue, transition revenue, and supplemental 33.17 revenue. 33.18 Sec. 37. Minnesota Statutes 1996, section 124A.22, 33.19 subdivision 2, as amended by Laws 1997, chapter 1, section 4, is 33.20 amended to read: 33.21 Subd. 2. [BASIC REVENUE.] The basic revenue for each 33.22 district equals the formula allowance times the actual pupil 33.23 units for the school year. The formula allowance for fiscal33.24 year 1995 is $3,150. The formula allowance for fiscal year 199633.25 is $3,205.The formula allowance for fiscal year 1997 and33.26 subsequent fiscal yearsis $3,505. The formula allowance for 33.27 fiscal year 1998 is $3,581 and the formula allowance for fiscal 33.28 year 1999 and subsequent fiscal years is $3,530. 33.29 Sec. 38. Minnesota Statutes 1996, section 124A.22, 33.30 subdivision 3, is amended to read: 33.31 Subd. 3. [COMPENSATORY EDUCATION REVENUE.] The 33.32 compensatory education revenue for each building in the district 33.33 equals the formula allowance less $300times the AFDC33.34 compensation revenue pupil units computed according to section 33.35 124.17, subdivision 1d. Revenue shall be paid to the district 33.36 and must be allocated according to section 124A.28, subdivision 34.1 1a. 34.2 Sec. 39. Minnesota Statutes 1996, section 124A.22, is 34.3 amended by adding a subdivision to read: 34.4 Subd. 3a. [BASIC SKILLS REVENUE.] For fiscal year 1999 and 34.5 thereafter, a school district's basic skills revenue equals the 34.6 sum of: 34.7 (1) compensatory revenue under subdivision 3; plus 34.8 (2) limited English proficiency revenue according to 34.9 section 124.273, subdivision 1g; plus 34.10 (3) $190 times the limited English proficiency pupil units 34.11 according to section 124.17, subdivision 6; plus 34.12 (4) the lesser of: (i) $22.50 times the number of fund 34.13 balance pupil units in kindergarten to grade 8; or (ii) the 34.14 amount of district money provided to match basic skills revenue 34.15 for the purposes described in section 124A.28. 34.16 Sec. 40. Minnesota Statutes 1996, section 124A.22, 34.17 subdivision 6, is amended to read: 34.18 Subd. 6. [SECONDARY SPARSITY REVENUE.] (a) A district's 34.19 secondary sparsity revenue for a school year equals the sum of 34.20 the results of the following calculation for each qualifying 34.21 high school in the district: 34.22 (1) the formula allowance for the school year less $300, 34.23 multiplied by 34.24 (2) the secondary average daily membership of the high 34.25 school, multiplied by 34.26 (3) the quotient obtained by dividing 400 minus the 34.27 secondary average daily membership by 400 plus the secondary 34.28 daily membership, multiplied by 34.29 (4) the lesser of 1.5 or the quotient obtained by dividing 34.30 the isolation index minus 23 by ten. 34.31 (b) A newly formed school district that is the result of 34.32 districts combining under the cooperation and combination 34.33 program or consolidating under section 122.23 shall receive 34.34 secondary sparsity revenue equal to the greater of: (1) the 34.35 amount calculated under paragraph (a) for the combined district; 34.36 or (2) the sum of the amounts of secondary sparsity revenue the 35.1 former school districts had in the year prior to consolidation, 35.2 increased for any subsequent changes in the secondary sparsity 35.3 formula. 35.4 Sec. 41. Minnesota Statutes 1996, section 124A.22, 35.5 subdivision 6a, is amended to read: 35.6 Subd. 6a. [ELEMENTARY SPARSITY REVENUE.] A district's 35.7 elementary sparsity revenue equals the sum of the following 35.8 amounts for each qualifying elementary school in the district: 35.9 (1) the formula allowance for the year less $300, 35.10 multiplied by 35.11 (2) the elementary average daily membership of the school, 35.12 multiplied by 35.13 (3) the quotient obtained by dividing 140 minus the 35.14 elementary average daily membership by 140 plus the average 35.15 daily membership. 35.16 Sec. 42. Minnesota Statutes 1996, section 124A.22, 35.17 subdivision 8a, is amended to read: 35.18 Subd. 8a. [SUPPLEMENTAL LEVY.] To obtain supplemental 35.19 revenue, a district may levy an amount not more than the product 35.20 of its supplemental revenue for the school year times the lesser 35.21 of one or the ratio of its general education levy to its general35.22 education revenue, excluding transition revenue and supplemental35.23 revenue, for the same yearadjusted net tax capacity per actual 35.24 pupil unit to $10,000. 35.25 Sec. 43. Minnesota Statutes 1996, section 124A.22, 35.26 subdivision 13, is amended to read: 35.27 Subd. 13. [TRANSPORTATION SPARSITY DEFINITIONS.] The 35.28 definitions in this subdivision apply to subdivisions 13a and 35.29 13b. 35.30 (a) "Sparsity index" for a school district means the 35.31 greater of .2 or the ratio of the square mile area of the school 35.32 district to the actual pupil units of the school district. 35.33 (b) "Density index" for a school district means the ratio 35.34 of the square mile area of the school district to the actual 35.35 pupil units of the school district. However, the density index 35.36 for a school district cannot be greater than .2 or less than 36.1 .005. 36.2 (c) "Fiscal year 1996 base allowance" for a school district 36.3 means the result of the following computation: 36.4 (1) sum the following amounts: 36.5 (i) the fiscal year 1996 regular transportation revenue for 36.6 the school district according to section 124.225, subdivision 36.7 7d, paragraph (a), excluding the revenue attributable nonpublic 36.8 school pupils and to pupils with disabilities receiving special 36.9 transportation services; plus 36.10 (ii) the fiscal year 1996 nonregular transportation revenue 36.11 for the school district according to section 124.225, 36.12 subdivision 7d, paragraph (b), excluding the revenue for 36.13 desegregation transportation according to section 124.225, 36.14 subdivision 1, paragraph (c), clause (4), and the revenue 36.15 attributable to nonpublic school pupils and to pupils with 36.16 disabilities receiving special transportation services or board 36.17 and lodging; plus 36.18 (iii) the fiscal year 1996 excess transportation levy for 36.19 the school district according to section 124.226, subdivision 5, 36.20 excluding the levy attributable to nonpublic school pupils; plus 36.21 (iv) the fiscal year 1996 late activity bus levy for the 36.22 school district according to section 124.226, subdivision 9, 36.23 excluding the levy attributable to nonpublic school pupils; plus 36.24 (v) an amount equal to one-third of the fiscal year 1996 36.25 bus depreciation for the school district according to section 36.26 124.225, subdivision 1, paragraph (b), clauses (2), (3), and (4). 36.27 (2) divide the result in clause (1) by the school districts36.28 district's 1995-1996 actualfund balance pupil units. 36.29 Sec. 44. Minnesota Statutes 1996, section 124A.22, 36.30 subdivision 13b, is amended to read: 36.31 Subd. 13b. [TRANSITION ALLOWANCE.] (a) A district's36.32 transportation transition allowance for fiscal year 1997 equals36.33 the result of the following computation:36.34 (1) if the result in subdivision 13a, paragraph (a), clause36.35 (iii), for fiscal year 1997 is less than the fiscal year 199636.36 base allowance, the transportation transition allowance equals37.1 the fiscal year 1996 base allowance minus the result in37.2 subdivision 13a, paragraph (a), clause (iii).37.3 (2) if the result in subdivision 13a, paragraph (b), for37.4 fiscal year 1997 is greater than the fiscal year 1996 base37.5 allowance and less than 110 percent of the fiscal year 1996 base37.6 allowance, the transportation transition allowance equals zero.37.7 (3) if the result in subdivision 13a, paragraph (b), for37.8 fiscal year 1997 is greater than 110 percent of the fiscal year37.9 1996 base allowance, the transportation transition allowance37.10 equals 110 percent of the fiscal year 1996 base allowance minus37.11 the result in subdivision 13a, paragraph (a), clause (iii).37.12 (b)A district's transportation transition allowance for 37.13 fiscal year 1998 and later equals the result of the following: 37.14 (1) if the result in subdivision 13a, paragraph (a), clause 37.15 (iii), for fiscal year 1998 is less than the fiscal year 1996 37.16 base allowance, the transportation transition allowance equals 37.17 the fiscal year 1996 base allowance minus the result in 37.18 subdivision 13a, paragraph (a), clause (iii); or 37.19 (2) if the result in subdivision 13a, paragraph (a), clause 37.20 (iii), for fiscal year 1998 and later is greater than or equal 37.21 to the fiscal year 1996 base allowance, the transportation 37.22 transition allowance equals zero. 37.23 (c)(b) For fiscal years 1997 and 1998, a district's 37.24 training and experience transition allowance is equal to the 37.25 training and experience revenue the district would have received 37.26 under Minnesota Statutes 1994, section 124A.22, subdivision 4, 37.27 divided by the actual pupil units for fiscal year 1997 minus 37.28 $130. For fiscal year 1999 and later, a district's training and 37.29 experience transition allowance equals zero. 37.30 If the training and experience transition allowance is less 37.31 than zero, the reduction shall be determined according to the 37.32 following schedule: 37.33 (i)(1) for fiscal year 1997, the reduction is equal to .9 37.34 times the amount initially determined; 37.35 (ii)(2) for fiscal year 1998, the reduction is equal to 37.36 .75 times the amount initially determined; and 38.1 (iii) for fiscal year 1999, the reduction is equal to .5038.2 times the amount initially determined;38.3 (iv) for fiscal year 2000, the reduction is equal to .2538.4 times the amount initially determined; and38.5 (v) for fiscal year 2001 and thereafter, the transition38.6 allowance shall not be less than zero38.7 (c) A district's transition compensatory allowance equals 38.8 the greater of zero or the difference between: 38.9 (1) the amount of compensatory revenue the district would 38.10 have received under subdivision 3 for fiscal year 1998 computed 38.11 using a basic formula allowance of $3,281; and 38.12 (2) the amount the district receives under subdivision 3; 38.13 divided by 38.14 (3) the district's actual pupil units for fiscal year 1998. 38.15 (d) A district's transition allowance for fiscal year 199738.16 and thereafter1998 is equal to the sum of its transportation 38.17 transition allowance and, its training and experience transition 38.18 allowance, and its transition compensatory allowance. A 38.19 district's transition allowance for fiscal year 1999 and 38.20 thereafter is equal to the sum of its transportation transition 38.21 allowance and its transition compensatory allowance. 38.22 Sec. 45. Minnesota Statutes 1996, section 124A.22, 38.23 subdivision 13d, is amended to read: 38.24 Subd. 13d. [TRANSITION LEVY ADJUSTMENT.] A district's 38.25 general education levy shall be adjusted by an amount equal to 38.26 the district's transition revenue times the lesser of 1 or the 38.27 ratio of the district's general education levy to its general38.28 education revenue, excluding transition revenue and supplemental38.29 revenueits adjusted net tax capacity per actual pupil unit to 38.30 $10,000. 38.31 Sec. 46. Minnesota Statutes 1996, section 124A.23, 38.32 subdivision 1, is amended to read: 38.33 Subdivision 1. [GENERAL EDUCATION TAX RATE.] The 38.34 commissioner shall establish the general education tax rate by 38.35 July 1 of each year for levies payable in the following year. 38.36 The general education tax capacity rate shall be a rate, rounded 39.1 up to the nearest tenthhundredth of a percent, that, when 39.2 applied to the adjusted net tax capacity for all districts, 39.3 raises the amount specified in this subdivision. The general 39.4 education tax rate shall be the rate that raises $1,054,000,00039.5 for fiscal year 1996 and$1,359,000,000 for fiscal year 199739.6 1998 and $1,385,500,000 for fiscal year 1999 and later fiscal 39.7 years. The general education tax rate may not be changed due to 39.8 changes or corrections made to a district's adjusted net tax 39.9 capacity after the tax rate has been established. If the levy 39.10 target for fiscal year 1999 is changed by another law enacted 39.11 during the 1997 session, the commissioner shall reduce the 39.12 target in this bill by the amount of the reduction in the 39.13 enacted law. 39.14 Sec. 47. Minnesota Statutes 1996, section 124A.23, 39.15 subdivision 2, is amended to read: 39.16 Subd. 2. [GENERAL EDUCATION LEVY.] To obtain general 39.17 education revenue, excluding transition revenue and supplemental 39.18 revenue, a district may levy an amount not to exceed the general 39.19 education tax rate times the adjusted net tax capacity of the 39.20 district for the preceding year. If the amount of the general 39.21 education levy would exceed the general education revenue, 39.22 excluding supplemental revenue, the general education levy shall 39.23 be determined according to subdivision 3. 39.24 Sec. 48. Minnesota Statutes 1996, section 124A.23, 39.25 subdivision 3, is amended to read: 39.26 Subd. 3. [GENERAL EDUCATION LEVY; DISTRICTS OFF THE 39.27 FORMULA.] If the amount of the general education levy for a 39.28 district exceeds the district's general education revenue, 39.29 excluding training and experiencetransition revenue and 39.30 supplemental revenue, the amount of the general education levy 39.31 shall be limited to the following: 39.32 (1) the district's general education revenue, excluding 39.33 training and experiencetransition revenue and supplemental 39.34 revenue; plus 39.35 (2) the amount of the aid reduction for the same school 39.36 year according to section 124A.24; minus 40.1 (3) payments made for the same school year according to 40.2 section 124A.035, subdivision 4. 40.3 For purposes of statutory cross-reference, a levy made 40.4 according to this subdivision shall be construed to be the levy 40.5 made according to subdivision 2. 40.6 Sec. 49. Minnesota Statutes 1996, section 124A.23, 40.7 subdivision 5, is amended to read: 40.8 Subd. 5. [USES OF REVENUE.] Except as provided in 40.9 sectionsections 124A.22, subdivision 11; 124A.225; and 124A.28, 40.10 general education revenue may be used during the regular school 40.11 year and the summer for general and special school purposes. 40.12 Sec. 50. Minnesota Statutes 1996, section 124A.26, 40.13 subdivision 1, is amended to read: 40.14 Subdivision 1. [ REVENUE REDUCTIONFUND BALANCE PUPIL UNIT 40.15 DEFINITION.] A district's general education revenue for a school40.16 year shall be reduced if the estimated net unappropriated40.17 operating fund balance as of June 30 in the prior school year40.18 exceeds 25 percent of the formula allowance for the current40.19 fiscal year times the fund balance pupil units in the prior40.20 year. For purposes of this subdivision and section 124.243,40.21 subdivision 2,Fund balance pupil units means the number of 40.22 resident pupil units in average daily membership, including 40.23 shared time pupils, according to section 124A.02, subdivision 40.24 20, plus 40.25 (1) pupils attending the district for which general 40.26 education aid adjustments are made according to section 40.27 124A.036, subdivision 5; minus 40.28 (2) the sum of the resident pupils attending other 40.29 districts for which general education aid adjustments are made 40.30 according to section 124A.036, subdivision 5, plus pupils for 40.31 whom payment is made according to section 126.22, subdivision 8, 40.32 or 126.23. The amount of the reduction shall equal the lesser40.33 of:40.34 (1) the amount of the excess, or40.35 (2) $250 times the actual pupil units for the school year.40.36 The final adjustment payments made under section 124.195,41.1 subdivision 6, must be adjusted to reflect actual net operating41.2 fund balances as of June 30 of the prior school year.41.3 Sec. 51. Minnesota Statutes 1996, section 124A.28, is 41.4 amended to read: 41.5 124A.28 [COMPENSATORY EDUCATION REVENUE.] 41.6 Subdivision 1. [USE OF THE REVENUE.] The compensatory 41.7 education revenue under section 124A.22, subdivision 3, must be 41.8 used to meet the educational needs of pupils whose educational41.9 achievementprogress toward meeting state or local content or 41.10 performance standards is below the level that is appropriate for 41.11 pupilslearners of their age. These needs may be met by41.12 providing theAny of the following may be provided to meet these 41.13 learners' needs: 41.14 (1) direct instructional services under the assurance of 41.15 mastery program according to section 124.311124.3111; 41.16 (2) remedial instruction in reading, language arts, and41.17 mathematics, other content areas, or study skills to improve the 41.18 achievement level of these pupilslearners; 41.19 (3) additional teachers and teacher aides to provide more 41.20 individualized instruction to these pupilslearners through 41.21 individual tutoring, lower instructor-to-learner ratios, or team 41.22 teaching; 41.23 (4) summer programs that enable these pupils to improve41.24 their achievement or that reemphasize material taught during the41.25 regular school yeara longer school day or week during the 41.26 regular school year or through a summer program that may be 41.27 offered directly by the site or under a performance-based 41.28 contract with a community-based organization; 41.29 (5) in-service educationcomprehensive and ongoing staff 41.30 development consistent with district and site plans according to 41.31 section 126.70, for teachers, teacher aides, principals, and 41.32 other personnel to improve their ability to recognizeidentify 41.33 the needs of these pupilslearners and provide 41.34 appropriate responses to the pupils' needsremediation, 41.35 intervention, accommodations, or modifications; 41.36 (6) forinstructional material for these pupils including:42.1 textbooks, workbooks, periodicals, pamphlets, photographs,42.2 reproductions, filmstrips, prepared slides, prerecorded video42.3 programs, sound recordings, desk charts, games, study prints and42.4 pictures, desk maps, models, learning kits, blocks and cubes,42.5 flashcards, instructional computer software programs, pencils,42.6 pens, crayons, notebooks, duplicating fluids, and42.7 papersmaterials and technology appropriate for meeting the 42.8 individual needs of these learners; 42.9 (7) programs to reduce truancy, encourage completion of 42.10 high school, enhance self-concept, provide health services, 42.11 provide nutrition services, provide a safe and secure learning 42.12 environment, provide coordination for pupils receiving services 42.13 from other governmental agencies, provide psychological services 42.14 to determine the level of social, emotional, cognitive, and 42.15 intellectual development, and provide counseling services, 42.16 guidance services, and social work services; 42.17 (8) bilingual programs, bicultural programs, and programs 42.18 for pupilslearners of limited English proficiency; 42.19 (9) all day kindergarten; 42.20 (10) extended school day and extended school year programs; 42.21 and42.22 (11) substantial parent involvement in developing and 42.23 implementing remedial education or intervention plans for a 42.24 learner, including learning contracts between the school, the 42.25 learner, and the parent that establish achievement goals and 42.26 responsibilities of the learner and the learner's parent or 42.27 guardian; and 42.28 (12) other methods to increase achievement, as needed. 42.29 Subd. 1a. [BUILDING ALLOCATION.] A district must consider42.30 the concentration of children from low-income families42.31 inallocate revenue to each school building in the district when42.32 allocating compensatory revenuewhere the children who have 42.33 generated the revenue are served. 42.34 If the pupil is served at a site other than one owned and 42.35 operated by the district, the revenue shall be paid to the 42.36 district and used for services for pupils who generate the 43.1 revenue. 43.2 Subd. 1b. [RECOMMENDATION.] A school site decision-making 43.3 team, as defined in section 123.951, subdivision 3, paragraph 43.4 (a), or the instruction and curriculum advisory committee under 43.5 section 123.972, if the school has no school site decision team, 43.6 shall recommend how the revenue will be used to carry out the 43.7 purpose of this section. 43.8 Subd. 2. [SEPARATE ACCOUNTS.] Each district that receives 43.9 compensatory education revenue shall maintain separate accounts 43.10 to identify expenditures for salaries and programs related to 43.11 thisbasic skills revenue. 43.12 Subd. 3. [ANNUAL EXPENDITURE REPORT.] Each year a district 43.13 that receives compensatory education revenue shall submit a 43.14 report identifying the expenditures it incurred in providing43.15 compensatory education to the pupils described into meet the 43.16 needs of eligible learners under subdivision 1. The report must 43.17 conform to uniform financial and reporting standards established 43.18 for this purpose. 43.19 Sec. 52. Laws 1991, chapter 265, article 1, section 30, as 43.20 amended by Laws 1993, chapter 224, article 8, section 19, is 43.21 amended to read: 43.22 Sec. 30. [BADGER SCHOOL DISTRICT FUND BALANCE.] 43.23 If independent school district No. 676, Badger, receives 43.24 payment of delinquent property taxes from one taxpayer and the 43.25 payment is more than five percent of the total property taxes 43.26 paid in the fiscal year in which the payment is received, 43.27 general education revenue for the district shall not be reduced 43.28 according to Minnesota Statutes, section 124A.26, subdivision 1, 43.29 for an excess fund balance attributed to the payment for the 43.30 following fiveten fiscal years. 43.31 Sec. 53. Laws 1995, First Special Session chapter 3, 43.32 article 1, section 56, is amended to read: 43.33 Sec. 56. [SUPPLEMENTAL REVENUE REDUCTION.] 43.34 For fiscal years 19961998 and 19971999, if a district's 43.35 ratio of 1992 adjusted net tax capacity divided by 1994-1995 43.36 actual pupil units to $9,025 is less than or equal to .25, then 44.1 the difference under Minnesota Statutes, section 124A.22, 44.2 subdivision 9, clause (2), is equal to $25$0 for purposes of 44.3 computing the district's supplemental revenue under Minnesota 44.4 Statutes, section 124A.22, subdivision 8. For purposes of 44.5 computing the referendum allowance reduction under Minnesota 44.6 Statutes, section 124A.03, subdivision 3b, the supplemental 44.7 revenue reduction shall be computed according to Minnesota 44.8 Statutes, section 124A.22, subdivision 9. 44.9 Sec. 54. Laws 1995, First Special Session chapter 3, 44.10 article 2, section 52, is amended to read: 44.11 Sec. 52. [TRANSPORTATION AIDS AND LEVIES; SUSPENSION.] 44.12 Minnesota Statutes 1994, sections 124.225, subdivisions 1, 44.13 3a, 7a, 7b, 7d, 7e, 8a, 8k, 8m,and 10; and 124.226, 44.14 subdivisions 1, 2, 3a, 4, 5, 6, 7, and 8, do not apply to aids 44.15 payable in fiscal years 1997 and 1998 or to levies made in 1995 44.16 and 1996 for taxes payable in 1996 and 1997. 44.17 Sec. 55. [RESTORATION OF REVENUE LOST TO FUND BALANCE 44.18 REDUCTION; MADELIA.] 44.19 Subdivision 1. [AID ADJUSTMENT.] Notwithstanding Minnesota 44.20 Statutes, section 124A.26, subdivision 3, general education aid 44.21 for independent school district No. 837, Madelia, shall not be 44.22 reduced for fiscal year 1997. 44.23 Subd. 2. [LEVY ADJUSTMENT.] Independent school district No. 44.24 837, Madelia, may make a positive levy adjustment for taxes 44.25 payable in 1998 equal to the amount of the general education 44.26 levy reduction required under Minnesota Statutes, section 44.27 124A.26, subdivision 2, attributed to fiscal year 1997. 44.28 Sec. 56. [RESTORATION OF REVENUE LOST TO FUND BALANCE 44.29 REDUCTION; HERMAN-NORCROSS.] 44.30 Subdivision 1. [AID ADJUSTMENT.] Notwithstanding Minnesota 44.31 Statutes, section 124A.26, subdivision 3, general education aid 44.32 for independent school district No. 264, Herman-Norcross, shall 44.33 not be reduced for fiscal year 1997. 44.34 Subd. 2. [LEVY ADJUSTMENT.] Independent school district No. 44.35 264, Herman-Norcross, may make a positive levy adjustment for 44.36 taxes payable in 1998 equal to the amount of the general 45.1 education levy reduction required under Minnesota Statutes, 45.2 section 124A.26, subdivision 2, attributed to fiscal year 1997. 45.3 Sec. 57. [LEVY ADJUSTMENT ATTRIBUTABLE TO THE REPEAL OF 45.4 THE K-12 APPROPRIATIONS CAPS.] 45.5 Notwithstanding Minnesota Statutes, section 124.918, 45.6 subdivision 6, a school district may spread any positive 45.7 referendum levy adjustments for fiscal year 1998 resulting from 45.8 the enactment of Laws 1997, chapter 1, over a three-year period 45.9 beginning with taxes payable in 1998. 45.10 Sec. 58. [BUS PURCHASE LEVY.] 45.11 For 1997 taxes payable in 1998, a school district may levy 45.12 the amount necessary to eliminate the deficit in the reserved 45.13 fund balance account for bus purchases in its transportation 45.14 fund as of June 30, 1996. 45.15 Sec. 59. [LEP CONCENTRATION AID; FISCAL YEAR 1998.] 45.16 For fiscal year 1998 only, a school district's LEP revenue 45.17 under Minnesota Statutes, section 124.273, subdivision 1g, is 45.18 increased by $190 times the district's LEP pupil units 45.19 determined according to article 2, section 3. 45.20 Sec. 60. [COMPENSATORY REVENUE GROWTH LIMIT.] 45.21 For fiscal years 1998 and 1999, the commissioner shall 45.22 limit the growth in compensatory revenue a district receives 45.23 according to this article. The commissioner shall compare the 45.24 compensatory revenue a district receives under the changes in 45.25 section 12 with the compensatory revenue per pupil unit a 45.26 district would have received if section 12 had not been 45.27 enacted. A district may not receive an increase in compensatory 45.28 revenue in excess of $300 per pupil unit. 45.29 Sec. 61. [SCHOOL DISTRICT LEVY ADJUSTMENTS.] 45.30 Subdivision 1. [REVENUE CONVERSION.] The commissioner of 45.31 children, families, and learning shall adjust each school 45.32 district's revenue authority that is established as a rate times 45.33 net tax capacity or adjusted net tax capacity under Minnesota 45.34 Statutes, chapters 124 and 124A, by multiplying each revenue 45.35 amount by the ratio of the statewide tax capacity as calculated 45.36 using the class rates in effect for assessment year 1996 to the 46.1 statewide tax capacity using the class rates for that assessment 46.2 year. 46.3 Subd. 2. [TAX RATE ADJUSTMENT.] The commissioner shall 46.4 adjust each tax rate established under Minnesota Statutes, 46.5 chapters 124 and 124A, by multiplying the rate by the ratio of 46.6 the statewide tax capacity as calculated using the class rates 46.7 in effect for assessment year 1996 to the statewide tax capacity 46.8 using the class rates for that assessment year. 46.9 Subd. 3. [EQUALIZING FACTORS.] The commissioner shall 46.10 adjust each equalizing factor established under Minnesota 46.11 Statutes, chapters 124 and 124A, by dividing the equalizing 46.12 factor by the ratio of the statewide tax capacity as calculated 46.13 using the class rates in effect for assessment year 1996 to the 46.14 statewide tax capacity using the class rates for that assessment 46.15 year. 46.16 Subd. 4. [QUALIFYING RATE.] The commissioner shall adjust 46.17 the qualifying rate under section 124.95, subdivision 3, by 46.18 multiplying the qualifying rate times the ratio of the statewide 46.19 tax capacity, as calculated using the class rates in effect for 46.20 assessment year 1996, to the statewide tax capacity using the 46.21 class rates for that assessment year. 46.22 Sec. 62. [APPROPRIATIONS.] 46.23 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 46.24 LEARNING.] The sums indicated in this section are appropriated 46.25 from the general fund to the department of children, families, 46.26 and learning for the fiscal years designated. 46.27 Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 46.28 general and supplemental education aid: 46.29 $2,584,703,000 ..... 1998 46.30 $2,698,990,000 ..... 1999 46.31 The 1998 appropriation includes $227,499,000 for 1997 and 46.32 $2,357,204,000 for 1998. 46.33 The 1999 appropriation includes $247,099,000 for 1998 and 46.34 $2,451,891,000 for 1999. 46.35 Of the 1998 appropriation, the first $113,800,000 is from 46.36 the education aids reserve of the general fund. 47.1 Subd. 3. [TRANSPORTATION SAFETY.] For student 47.2 transportation safety aid according to Minnesota Statutes, 47.3 section 124.225, subdivision 8m: 47.4 $1,430,000 ..... 1998 47.5 $1,458,000 ..... 1999 47.6 The 1998 appropriation includes $129,000 for 1997 and 47.7 $1,301,000 for 1998. 47.8 The 1999 appropriation includes $144,000 for 1998 and 47.9 $1,314,000 for 1999. 47.10 Subd. 4. [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 47.11 transportation of pupils attending post-secondary institutions 47.12 according to Minnesota Statutes, section 123.3514, or for 47.13 transportation of pupils attending nonresident districts 47.14 according to Minnesota Statutes, section 120.062: 47.15 $102,000 ..... 1998 47.16 $102,000 ..... 1999 47.17 Any balance in the first year does not cancel but is 47.18 available in the second year. 47.19 Subd. 5. [WIDE AREA TRANSPORTATION SERVICE PILOT PROJECT.] 47.20 To expand the wide area transportation service project: 47.21 $170,000 ..... 1998 47.22 $ 50,000 ..... 1999 47.23 Of the amount in fiscal year 1998, $70,000 is for a grant 47.24 to the Minnesota river valley special education cooperative for 47.25 a computerized routing system. 47.26 The purpose is to expand the project for the computerized 47.27 mapping and scheduling programs for school districts to jointly 47.28 provide transportation services for low-incidence programs. The 47.29 department shall work with representatives of the affected 47.30 programs, transportation managers from both metropolitan and 47.31 rural districts, and the metropolitan council. The department 47.32 shall contract for services and provide oversight. The 47.33 department must report to the education committees of the 47.34 legislature by February 15, 1998, on the operation of the wide 47.35 area transportation service project, including details regarding 47.36 whether the project is meeting its objectives and any problems 48.1 related to the service provided by the project. The project 48.2 shall consider the relationship of education transportation with 48.3 transportation services provided by noneducation agencies. 48.4 Any balance in the first year does not cancel but is 48.5 available in the second year. 48.6 Subd. 6. [INTERDISTRICT DESEGREGATION OR INTEGRATION 48.7 TRANSPORTATION GRANTS.] For interdistrict desegregation or 48.8 integration transportation grants under Minnesota Statutes, 48.9 section 124.227: 48.10 $800,000 ..... 1998 48.11 $970,000 ..... 1999 48.12 Any balance in the first year does not cancel but is 48.13 available in the second year. 48.14 Subd. 7. [TARGETED NEEDS TRANSPORTATION AID.] For aid 48.15 payments for targeted needs transportation aid under Minnesota 48.16 Statutes, section 124.225, subdivisions 13 and 16: 48.17 $76,195,000 ..... 1998 48.18 $24,303,000 ..... 1999 48.19 The 1998 appropriation includes $7,148,000 for 1997 and 48.20 $69,047,000 for 1998. 48.21 The 1999 appropriation includes $7,671,000 for 1998 and 48.22 $16,632,000 for 1999. 48.23 Subd. 8. [HEALTH AND SAFETY AID.] For health and safety 48.24 aid according to Minnesota Statutes, section 124.83, subdivision 48.25 5: 48.26 $14,081,000 ..... 1998 48.27 $14,179,000 ..... 1999 48.28 The 1998 appropriation includes $1,132,000 for 1997 and 48.29 $12,949,000 for 1998. 48.30 The 1999 appropriation includes $1,438,000 for 1998 and 48.31 $12,741,000 for 1999. 48.32 Subd. 9. [DEBT SERVICE AID.] For debt service aid 48.33 according to Minnesota Statutes, section 124.95, subdivision 5: 48.34 $35,480,000 ..... 1998 48.35 $38,159,000 ..... 1999 48.36 The 1998 appropriation includes $3,313,000 for 1997 and 49.1 $32,167,000 for 1998. 49.2 The 1999 appropriation includes $3,574,000 for 1998 and 49.3 $34,585,000 for 1999. 49.4 Subd. 10. [SHIFT SIMPLIFIED.] For additional general 49.5 education aid for simplifying the property tax recognition shift 49.6 under this article: 49.7 $18,700,000 ..... 1998 49.8 Sec. 63. [REPEALER.] 49.9 (a) Minnesota Statutes 1996, sections 121.904, subdivision 49.10 4d; 121.912, subdivision 7; and 124A.26, subdivisions 1a, 2, 3, 49.11 4, and 5, are repealed. 49.12 (b) Minnesota Statutes 1996, sections 124.223; 124.225, 49.13 subdivisions 3a, 7a, 7b, 7d, 7e, 8a, 8k, and 10; and 124A.22, 49.14 subdivisions 4a and 4b, are repealed effective July 1, 1997. 49.15 (c) Minnesota Statutes 1996, sections 124.226; and 124.912, 49.16 subdivisions 2 and 3, are repealed effective for revenue for 49.17 fiscal year 1999. 49.18 Sec. 64. [EFFECTIVE DATE.] 49.19 (a) Sections 2, 11, 29, 30, 32, and 43 are effective for 49.20 revenue for fiscal year 1997. 49.21 (b) Sections 42 and 45 are effective for fiscal year 1999. 49.22 (c) If this act is enacted on or after July 1, 1997, all 49.23 sections in this article except for those sections listed in 49.24 paragraphs (a) and (b) are effective the day following final 49.25 enactment. 49.26 ARTICLE 2 49.27 SPECIAL PROGRAMS 49.28 Section 1. Minnesota Statutes 1996, section 120.1701, 49.29 subdivision 3, is amended to read: 49.30 Subd. 3. [STATE INTERAGENCY COORDINATING COUNCIL.] An 49.31 interagency coordinating council of at least 17, but not more 49.32 than 25 members is established, in compliance with Public Law 49.33 Number 102-119, section 682. The members shall be appointed by 49.34 the governor. Council members shall elect the council chair. 49.35 The representative of the commissioner of children, families, 49.36 and learning may not serve as the chair. The council shall be 50.1 composed of at least five parents, including persons of color, 50.2 of children with disabilities under age 12, including at least 50.3 three parents of a child with a disability under age seven, five 50.4 representatives of public or private providers of services for 50.5 children with disabilities under age five, including a special 50.6 education director, county social service director, and a 50.7 community health services or public health nursing 50.8 administrator, one member of the senate, one member of the house 50.9 of representatives, one representative of teacher preparation 50.10 programs in early childhood-special education or other 50.11 preparation programs in early childhood intervention, at least 50.12 one representative of advocacy organizations for children with 50.13 disabilities under age five, one physician who cares for young 50.14 children with special health care needs, one representative each 50.15 from the commissioners of commerce, children, families, and 50.16 learning, health, human services, and economic security, and a 50.17 representative from Indian health services or a tribal council. 50.18 Section 15.059, subdivisions 2 to 5, apply to the council. The 50.19 council shall meet at least quarterly. 50.20 The council shall address methods of implementing the state 50.21 policy of developing and implementing comprehensive, 50.22 coordinated, multidisciplinary interagency programs of early 50.23 intervention services for children with disabilities and their 50.24 families. 50.25 The duties of the council include recommending policies to 50.26 ensure a comprehensive and coordinated system of all state and 50.27 local agency services for children under age five with 50.28 disabilities and their families. The policies must address how 50.29 to incorporate each agency's services into a unified state and 50.30 local system of multidisciplinary assessment practices, 50.31 individual intervention plans, comprehensive systems to find 50.32 children in need of services, methods to improve public 50.33 awareness, and assistance in determining the role of interagency 50.34 early intervention committees. 50.35 Each year by June 1, the council shall recommend to the 50.36 governor and the commissioners of children, families, and 51.1 learning, health, human services, commerce, and economic 51.2 security policies for a comprehensive and coordinated system. 51.3 Notwithstanding any other law to the contrary, the state 51.4 interagency coordinating council shall expire on June 30, 199751.5 2001. 51.6 Sec. 2. Minnesota Statutes 1996, section 120.181, is 51.7 amended to read: 51.8 120.181 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 51.9 EDUCATION AND TRANSPORTATION.] 51.10 The responsibility for providing instruction and 51.11 transportation for a pupil without a disability who has a 51.12 short-term or temporary physical or emotional illness or 51.13 disability, as determined by the standards of the state board, 51.14 and who is temporarily placed for care and treatment for that 51.15 illness or disability, shall be determined as provided in this 51.16 section. 51.17 (a) The school district of residence of the pupil shall be 51.18 the district in which the pupil's parent or guardian resides, or 51.19 when neither the pupil's parent or guardian resides within the 51.20 state and tuition has been denied, the district designated by 51.21 the commissioner of children, families, and learning if neither51.22 parent nor guardian is living within the state. 51.23 (b) Prior to the placement of a pupil for care and 51.24 treatment, the district of residence shall be notified and 51.25 provided an opportunity to participate in the placement 51.26 decision. When an immediate emergency placement is necessary 51.27 and time does not permit resident district participation in the 51.28 placement decision, the district in which the pupil is 51.29 temporarily placed, if different from the district of residence, 51.30 shall notify the district of residence of the emergency 51.31 placement within 15 days of the placement. 51.32 (c) When a pupil without a disability is temporarily placed 51.33 for care and treatment in a day program and the pupil continues 51.34 to live within the district of residence during the care and 51.35 treatment, the district of residence shall provide instruction 51.36 and necessary transportation for the pupil. The district may 52.1 provide the instruction at a school within the district of 52.2 residence, at the pupil's residence, or in the case of a 52.3 placement outside of the resident district, in the district in 52.4 which the day treatment program is located by paying tuition to 52.5 that district. The district of placement may contract with a 52.6 facility to provide instruction by teachers licensed by the 52.7 state board of teaching. 52.8 (d) When a pupil without a disability is temporarily placed 52.9 in a residential program for care and treatment, the district in 52.10 which the pupil is placed shall provide instruction for the 52.11 pupil and necessary transportation while the pupil is receiving 52.12 instruction, and in the case of a placement outside of the 52.13 district of residence, the nonresident district shall bill the 52.14 district of residence for the actual cost of providing the 52.15 instruction for the regular school year and for summer school, 52.16 excluding transportation costs. When a pupil without a 52.17 disability is temporarily placed in a residential program 52.18 outside the district of residence, the administrator of the 52.19 court placing the pupil shall send timely written notice of the 52.20 placement to the district of residence. The district of 52.21 placement may contract with a residential facility to provide 52.22 instruction by teachers licensed by the state board of teaching. 52.23 (e) The district of residence shall include the pupil in 52.24 its residence count of pupil units and pay tuition as provided 52.25 in section 124.18 to the district providing the instruction. 52.26 Transportation costs shall be paid by the district providing the 52.27 transportation and the state shall pay transportation aid to 52.28 that district. For purposes of computing state transportation 52.29 aid, pupils governed by this subdivision shall be included in 52.30 the disabled transportation category. 52.31 Sec. 3. Minnesota Statutes 1996, section 124.17, is 52.32 amended by adding a subdivision to read: 52.33 Subd. 6. [LEP PUPIL UNITS.] (a) Limited English 52.34 proficiency pupil units for fiscal year 1998 and thereafter 52.35 shall be determined according to this subdivision. 52.36 (b) The limited English proficiency concentration 53.1 percentage for a district equals the product of 100 times the 53.2 ratio of: 53.3 (1) the number of pupils of limited English proficiency 53.4 enrolled in the district during the current fiscal year; to 53.5 (2) the number of pupils in average daily membership 53.6 enrolled in the district. 53.7 (c) The limited English proficiency pupil units for each 53.8 pupil enrolled in a program for pupils of limited English 53.9 proficiency in accordance with sections 126.261 to 126.269 53.10 equals the lesser of one or the quotient obtained by dividing 53.11 the limited English proficiency concentration percentage for the 53.12 pupil's district of enrollment by 11.5. 53.13 (d) Limited English proficiency pupil units shall be 53.14 counted by the district of enrollment. 53.15 Sec. 4. Minnesota Statutes 1996, section 124.248, 53.16 subdivision 3, is amended to read: 53.17 Subd. 3. [SPECIAL EDUCATION AND LIMITED ENGLISH53.18 PROFICIENCYAID.] Except as provided in subdivision 1a, 53.19 paragraph (b), special education aid shall be paid to a charter 53.20 school according to sections 124.3201 and 124.3202, as though it 53.21 were a school district. The charter school may charge tuition 53.22 to the district of residence as provided in section 120.17, 53.23 subdivision 4. Limited English proficiency programs aid shall53.24 be paid to a charter school according to section 124.273 as53.25 though it were a school district.The charter school shall 53.26 allocate its special education levy equalization revenue to the 53.27 resident districts of the pupils attending the charter school. 53.28 The districts of residence shall levy as though they were 53.29 participating in a cooperative, as provided in section 124.321, 53.30 subdivision 3. 53.31 Sec. 5. Minnesota Statutes 1996, section 124.2613, 53.32 subdivision 3, is amended to read: 53.33 Subd. 3. [QUALIFYING SCHOOL SITE.] (a) The commissioner 53.34 shall rank all school sites with kindergarten programs that do 53.35 not exclusively serve students under section 120.17. The 53.36 ranking must be from highest to lowest based on the site's free 54.1 and reduced lunch count as a percent of the fall enrollment 54.2 using the preceding October 1 enrollment data. Once a school 54.3 site is calculated to be eligible, it remains eligible for the 54.4 duration of the pilot program. For each school site, the 54.5 percentage used to calculate the ranking must be the greater of 54.6 (1) the percent of the fall kindergarten enrollment receiving 54.7 free and reduced lunch, or (2) the percent of the total fall 54.8 enrollment receiving free and reduced lunch. The list of ranked 54.9 sites must be separated into the following geographic areas: 54.10 Minneapolis district, St. Paul district, suburban Twin Cities 54.11 districts in the seven-county metropolitan area, and school 54.12 districts in greater Minnesota. 54.13 (b) The commissioner shall establish a process and 54.14 timelines to qualify school sites for the next school year. 54.15 School sites must be qualified in each geographic area from the 54.16 list of ranked sites until the estimated revenue available for 54.17 this program has been allocated. The total estimated revenue of54.18 $3,500,000must be distributed to qualified school sites in each 54.19 geographic area as follows: 25 percent for Minneapolis sites, 54.20 25 percent for St. Paul sites, 25 percent for suburban Twin 54.21 Cities sites, and 25 percent for greater Minnesota. 54.22 Sec. 6. Minnesota Statutes 1996, section 124.2613, 54.23 subdivision 4, is amended to read: 54.24 Subd. 4. [PROGRAM.] A qualifying school site must develop 54.25 its first-grade preparedness program in collaboration with other 54.26 providers of school readiness and child development services. A 54.27 school site must eitheroffer a full-day kindergarten program to 54.28 participating children who are five years of age or older for 54.29 the full school day every day or a half-day, a program for 54.30 participating children who are four years old, or a combination 54.31 of both. The program may offer as an option to families home 54.32 visits and other practices as appropriate, and may provide such 54.33 services with the consent of the parent or guardian. Full-day54.34 and half-day kindergartenProgram providers must ensure that the 54.35 program they providesupplements existing school readiness and 54.36 child development programs and complements the services provided 55.1 with compensatory revenue. Where possible, individuals 55.2 receiving assistance under a family assistance plan can meet the 55.3 work activity requirement of the plan by participating in a 55.4 first-grade preparedness program as a volunteer. 55.5 Sec. 7. Minnesota Statutes 1996, section 124.2613, 55.6 subdivision 6, is amended to read: 55.7 Subd. 6. [PREPAREDNESS REVENUE.] (a) A qualifying school 55.8 district is eligible for first-grade preparedness revenue equal 55.9 to the basic formula allowance for that year times the number of55.10 pupil units calculated according to paragraph (b) in each55.11 qualifying school site. If the first-grade preparedness revenue55.12 is insufficient to fully fund the formula amounts, the55.13 commissioner shall prorate the revenue provided to each55.14 qualifying school siteof children five years of age or older 55.15 enrolled in a kindergarten program at the site on October 1 of 55.16 the previous year times .53. 55.17 (b) A pupil enrolled in a half-day first-grade preparedness55.18 program under this section is counted as .53 pupil units. A55.19 pupil enrolled in a full-day first-grade preparedness program55.20 under this section is counted as a kindergarten pupil under55.21 section 124.17, subdivision 1, plus an additional .53 pupil55.22 units.55.23 (c)This revenue must supplement and not replace 55.24 compensatory revenue that the district uses for the same or 55.25 similar purposes under chapter 124A. 55.26 (c) A pupil enrolled in the first grade preparedness 55.27 program at a qualifying school site is eligible for 55.28 transportation under section 123.39, subdivision 1. 55.29 (d) First grade preparedness revenue paid to a charter 55.30 school for which a school district is providing transportation 55.31 according to section 120.064, subdivision 15, shall be decreased 55.32 by an amount equal to the product of $170 times the pupil units 55.33 calculated according to paragraph (a). This amount shall be 55.34 paid to the school district for transportation costs. 55.35 Sec. 8. Minnesota Statutes 1996, section 124.273, 55.36 subdivision 1d, is amended to read: 56.1 Subd. 1d. [LEP BASE REVENUE.] (a) The limited English 56.2 proficiency programs base revenue equals the sum of the 56.3 following amounts, computed using base year data: 56.4 (1) 68 percent of the salary of one full-time equivalent 56.5 teacher for each 40 pupils of limited English proficiency 56.6 enrolled, or 68 percent of the salary of one-half of a full-time 56.7 teacher in a district with 20 or fewer pupils of limited English 56.8 proficiency enrolled; and 56.9 (2) for supplies and equipment purchased or rented for use 56.10 in the instruction of pupils of limited English proficiency an 56.11 amount equal to 47 percent of the sum actually spent by the 56.12 district but not to exceed an average of $47 in any one school 56.13 year for each pupil of limited English proficiency receiving 56.14 instruction. 56.15 (b) For the purposes of this subdivision, a teacher 56.16 includes nonlicensed personnel who provide direct instruction to 56.17 students of limited English proficiency under the supervision of 56.18 a licensed teacher. 56.19 (c) If requested by a school district operating a limited 56.20 English proficiency program during the base year for less than 56.21 the full school year, the commissioner may adjust the base 56.22 revenue to reflect the expenditures that would have occurred 56.23 during the base year had the program been operated for the full 56.24 school year. 56.25 Sec. 9. Minnesota Statutes 1996, section 124.273, 56.26 subdivision 1e, is amended to read: 56.27 Subd. 1e. [AID.] A district's limited English proficiency 56.28 aid for fiscal year 1996 and later1998 equals the aid 56.29 percentage factor under section 124.3201, subdivision 1, times 56.30 the district's limited English proficiency revenue. 56.31 Sec. 10. Minnesota Statutes 1996, section 124.273, 56.32 subdivision 1f, is amended to read: 56.33 Subd. 1f. [STATE TOTAL LEP REVENUE.] (a) The state total 56.34 limited English proficiency programs revenue for fiscal 56.35 year 19961998 equals $12,202,000$14,629,000. The state total 56.36 limited English proficiency programs revenue for fiscal 57.1 year 19971999 equals $13,299,000$16,092,000. 57.2 (b) The state total limited English proficiency programs 57.3 revenue for later fiscal years equals: 57.4 (1) the state total limited English proficiency programs 57.5 revenue for the preceding fiscal year; times 57.6 (2) the program growth factor under section 124.3201, 57.7 subdivision 1; times 57.8 (3) the ratio of the state total number of pupils with 57.9 limited English proficiency for the current fiscal year to the 57.10 state total number of pupils with limited English proficiency 57.11 for the preceding fiscal year. 57.12 Sec. 11. Minnesota Statutes 1996, section 124.273, 57.13 subdivision 5, is amended to read: 57.14 Subd. 5. [NOTIFICATION; AID PAYMENTSREVENUE.] The 57.15 department must promptly inform each applicant district of the 57.16 amount of aidrevenue it will receive pursuant to this section. 57.17 Sec. 12. [124.3111] [ASSURANCE OF MASTERY PROGRAMS.] 57.18 Subdivision 1. [ELIGIBLE DISTRICTS.] A district with a 57.19 local process to review curriculum and instruction may provide 57.20 an assurance of mastery program to eligible pupils. 57.21 Subd. 2. [ELIGIBLE PUPILS.] A pupil is eligible to receive 57.22 services through an assurance of mastery program if the pupil 57.23 has not demonstrated progress toward mastering the required 57.24 graduation standards, after receiving instruction that was 57.25 designed to enable the pupil to make progress toward mastering 57.26 the required graduation standards in a regular classroom 57.27 setting. To determine pupil eligibility, a district must use a 57.28 process adopted by the school board to review curriculum and 57.29 instruction, for the subjects and at the grade level at which 57.30 the district uses the revenue. 57.31 Subd. 3. [ELIGIBLE SERVICES.] (a) Assurance of mastery 57.32 programs may provide direct instructional services to an 57.33 eligible pupil, or a group of eligible pupils, under the 57.34 following conditions in paragraphs (b) to (d). 57.35 (b) Instruction may be provided at one or more grade levels 57.36 from kindergarten to grade 8 and for students in grades 9 58.1 through 12 who have failed the basic skills tests. If an 58.2 assessment of pupils' needs within a district demonstrates that 58.3 the eligible pupils in grades kindergarten to grade 8 are being 58.4 appropriately served, a district may serve eligible pupils in 58.5 grades 9 to 12. 58.6 (c) Instruction must be provided under the supervision of 58.7 the eligible pupil's regular classroom teacher. Instruction may 58.8 be provided by the eligible pupil's classroom teacher, by 58.9 another teacher, by a team of teachers, or by an education 58.10 assistant or aide. A special education teacher may provide 58.11 instruction, but instruction that is provided under this section 58.12 is not eligible for aid under section 124.3201. 58.13 (d) The instruction that is provided must differ from the 58.14 initial instruction the pupil received in the regular classroom 58.15 setting. The instruction may differ by presenting different 58.16 curriculum than was initially presented in the regular classroom 58.17 or by presenting the same curriculum: 58.18 (1) at a different rate or in a different sequence than it 58.19 was initially presented; 58.20 (2) using different teaching methods or techniques than 58.21 were used initially; or 58.22 (3) using different instructional materials than were used 58.23 initially. 58.24 Sec. 13. Minnesota Statutes 1996, section 124.312, 58.25 subdivision 4, is amended to read: 58.26 Subd. 4. [INTEGRATION REVENUE.] For fiscal yearyears 58.27 1996, 1997, and later fiscal years1998, integration revenue 58.28 equals the sum of integration aid and integration levy under 58.29 section 124.912, subdivision 2. 58.30 Sec. 14. Minnesota Statutes 1996, section 124.312, 58.31 subdivision 5, is amended to read: 58.32 Subd. 5. [INTEGRATION AID.] For fiscal yearyears 1996, 58.33 1997, and later fiscal years1998, integration aid equals the 58.34 following amounts: 58.35 (1) for independent school district No. 709, Duluth, 58.36 $1,385,000; 59.1 (2) for independent school district No. 625, St. Paul, 59.2 $8,090,700; and 59.3 (3) for special school district No. 1, Minneapolis, 59.4 $9,368,300. 59.5 Sec. 15. Minnesota Statutes 1996, section 124.313, is 59.6 amended to read: 59.7 124.313 [TARGETED NEEDS REVENUE.] 59.8 For fiscal yearyears 1996, 1997, and thereafter1998, a 59.9 school district's targeted needs revenue equals the sum of: 59.10 (1) assurance of mastery revenue according to section 59.11 124.311; plus 59.12 (2) the district's limited English proficiency revenue 59.13 computed according to section 124.273, subdivision 1d; plus 59.14 (3) integration revenue computed according to section 59.15 124.312, subdivision 4. 59.16 Sec. 16. Minnesota Statutes 1996, section 124.314, 59.17 subdivision 1, is amended to read: 59.18 Subdivision 1. [AID.] For fiscal yearyears 1996, 1997, 59.19 and thereafter1998, a school district's targeted needs aid 59.20 equals the sum of its assurance of mastery aid according to 59.21 section 124.311, its limited English proficiency aid according 59.22 to section 124.273, subdivision 1e, and its integration aid 59.23 according to section 124.312, subdivision 5. 59.24 Sec. 17. Minnesota Statutes 1996, section 124.314, 59.25 subdivision 2, is amended to read: 59.26 Subd. 2. [LEVY.] For fiscal yearyears 1996, 1997, and 59.27 thereafter1998, a school district's targeted needs levy equals 59.28 the sum of its integration levy under section 124.912, 59.29 subdivision 2, and that portion of its special education levy 59.30 attributed to the limited English proficiency program. 59.31 Sec. 18. [124.315] [INTEGRATION REVENUE.] 59.32 Subdivision 1. [USE OF THE REVENUE.] Integration revenue 59.33 under this section must be used for programs established under a 59.34 desegregation plan mandated by the state board or under court 59.35 order, to increase learning opportunities and reduce the 59.36 learning gap between learners living in high concentrations of 60.1 poverty and their peers. 60.2 Subd. 2. [SEPARATE ACCOUNT.] Integration revenue shall be 60.3 maintained in a separate account to identify expenditures for 60.4 salaries and programs related to this revenue. 60.5 Subd. 3. [INTEGRATION REVENUE.] For fiscal year 1999 and 60.6 later fiscal years, integration revenue equals the following 60.7 amounts: 60.8 (1) for independent school district No. 709, Duluth, $193 60.9 times the actual pupil units for the school year; 60.10 (2) for independent school district No. 625, St. Paul, $427 60.11 times the actual pupil units for the school year; 60.12 (3) for special school district No. 1, Minneapolis, $523 60.13 times the actual pupil units for the school year; and 60.14 (4) for a district not listed in clause (1), (2), or (3) 60.15 that is required to implement a plan according to the 60.16 requirements of Minnesota Rules, parts 3535.0200 to 3535.2200, 60.17 the lesser of the actual cost of implementing the plan during 60.18 the fiscal year or $93 times the actual pupil units for the 60.19 school year. 60.20 Subd. 4. [INTEGRATION LEVY.] A district may levy an amount 60.21 equal to 46 percent of the district's integration revenue as 60.22 defined in subdivision 3. 60.23 Subd. 5. [INTEGRATION AID.] A district's integration aid 60.24 equals 54 percent of the district's integration revenue as 60.25 defined in subdivision 3. 60.26 Subd. 6. [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 60.27 integration aid under subdivision 5 must be adjusted for each 60.28 pupil attending a nonresident district under sections 120.062, 60.29 120.075, 120.0751, 120.0752, and 124C.45 to 124C.48 if the 60.30 enrollment of the pupil in the nonresident district contributes 60.31 to desegregation or integration purposes. The adjustments must 60.32 be made according to this subdivision. 60.33 (b) Aid paid to the district of the pupil's residence must 60.34 be reduced by an amount equal to the revenue per actual pupil 60.35 unit of the resident district times the number of actual pupil 60.36 units attributable to the pupil for the time the pupil is 61.1 enrolled in a nonresident district. 61.2 (c) Aid paid to a district serving nonresidents must be 61.3 increased by an amount equal to the aid reduction to the 61.4 resident district under paragraphs (b) and (d). 61.5 (d) If the amount of the reduction to be made from the aid 61.6 of a district is greater than the amount of aid otherwise due 61.7 the district, the excess reduction must be made from other state 61.8 aids due the district. 61.9 Sec. 19. Minnesota Statutes 1996, section 124.3201, 61.10 subdivision 1, is amended to read: 61.11 Subdivision 1. [DEFINITIONS.] For the purposes of this 61.12 section and sections 124.3202 and 124.321, the definitions in 61.13 this subdivision apply. 61.14 (a) "Base year" for fiscal year 1996 and fiscal year 199761.15 means the 1994 summer program and the 1994-1995 school year.61.16 Base year for1998 and later fiscal years means the second 61.17 fiscal year preceding the fiscal year for which aid will be paid. 61.18 (b) "Basic revenue" has the meaning given it in section 61.19 124A.22, subdivision 2. For the purposes of computing basic 61.20 revenue pursuant to this section, each child with a disability 61.21 shall be counted as prescribed in section 124.17, subdivision 1. 61.22 (c) "Essential personnel" means teachers, related services, 61.23 and support services staff providing direct services to students. 61.24 (d) "Average daily membership" has the meaning given it in 61.25 section 124.17. 61.26 (e) "Program growth factor" means 1.00 for fiscal year 199861.27 2000 and later. 61.28 (f) "Aid percentage factor" means 60 percent for fiscal 61.29 year 1996, 70 percent for fiscal year 1997, 80 percent for 61.30 fiscal year 1998, 90 percent for fiscal year 1999, and 100 61.31 percent for fiscal years 2000 and later. 61.32 (g) "Levy percentage factor" means 100 minus the aid 61.33 percentage factor for that year. 61.34 Sec. 20. Minnesota Statutes 1996, section 124.3201, 61.35 subdivision 2, is amended to read: 61.36 Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] (a) The special 62.1 education base revenue equals the sum of the following amounts 62.2 computed using base year data: 62.3 (1) 68 percent of the salary of each essential person 62.4 employed in the district's program for children with a 62.5 disability during the regular school year, whether the person is 62.6 employed by one or more districts; 62.7 (2) for the Minnesota state academy for the deaf or the 62.8 Minnesota state academy for the blind, 68 percent of the salary 62.9 of each instructional aide assigned to a child attending the 62.10 academy, if that aide is required by the child's individual 62.11 education plan; 62.12 (3) for special instruction and services provided to any 62.13 pupil by contracting with public, private, or voluntary agencies 62.14 other than school districts, in place of special instruction and 62.15 services provided by the district, 52 percent of the difference 62.16 between the amount of the contract and the basic revenue of the 62.17 district for that pupil for the fraction of the school day the 62.18 pupil receives services under the contract; 62.19 (4) for special instruction and services provided to any 62.20 pupil by contracting for services with public, private, or 62.21 voluntary agencies other than school districts, that are 62.22 supplementary to a full educational program provided by the 62.23 school district, 52 percent of the amount of the contract for 62.24 that pupil; 62.25 (5) for supplies and equipment purchased or rented for use 62.26 in the instruction of children with a disability an amount equal 62.27 to 47 percent of the sum actually expended by the district but 62.28 not to exceed an average of $47 in any one school year for each 62.29 child with a disability receiving instruction; and62.30 (6) for fiscal years 1997 and later, special education base 62.31 revenue shall include amounts under clauses (1) to (5) for 62.32 special education summer programs provided during the base year 62.33 for that fiscal year; and 62.34 (7) for fiscal years 1999 and later, the cost of providing 62.35 transportation services for children with disabilities under 62.36 section 124.225, subdivision 1, paragraph (b), clause (4). 63.1 (b) If requested by a school district operating a special 63.2 education program during the base year for less than the full 63.3 school year, the commissioner may adjust the base revenue to 63.4 reflect the expenditures that would have occurred during the 63.5 base year had the program been operated for the full school year. 63.6 Sec. 21. Minnesota Statutes 1996, section 124.3201, 63.7 subdivision 3, is amended to read: 63.8 Subd. 3. [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For 63.9 fiscal year 19961997 and later, a district's adjusted special 63.10 education base revenue equals the district's special education 63.11 base revenue times the ratio of the district's average daily 63.12 membership for the current school year to the district's average 63.13 daily membership for the base year ; plus the district's special63.14 education tuition revenue under subdivision 2a and special63.15 education court placement revenue under subdivision 2b. 63.16 Sec. 22. Minnesota Statutes 1996, section 124.3201, 63.17 subdivision 4, is amended to read: 63.18 Subd. 4. [STATE TOTAL SPECIAL EDUCATION REVENUE.] The 63.19 state total special education revenue for fiscal year 19961998 63.20 equals $327,846,000$358,542,000. The state total special 63.21 education revenue for fiscal year 19971999 equals 63.22 $347,810,000$435,322,000. The state total special education 63.23 revenue for later fiscal years equals: 63.24 (1) the state total special education revenue for the 63.25 preceding fiscal year; times 63.26 (2) the program growth factor; times 63.27 (3) the ratio of the state total average daily membership 63.28 for the current fiscal year to the state total average daily 63.29 membership for the preceding fiscal year. 63.30 Sec. 23. Minnesota Statutes 1996, section 124.321, 63.31 subdivision 1, is amended to read: 63.32 Subdivision 1. [LEVY EQUALIZATION REVENUE.] (a) For fiscal 63.33 years 1996 and lateryear 1999, special education levy 63.34 equalization revenue for a school district, excluding an 63.35 intermediate school district, equals the sum of the following 63.36 amounts: 64.1 (1) the levy percentage factor for that year times the 64.2 district's special education revenue under section 124.3201; 64.3 plus 64.4 (2) the levy percentage factor for that year times the 64.5 district's special education summer program revenue under 64.6 section 124.3202; plus 64.7 (3) the levy percentage factor for that year times the 64.8 district's special education excess cost revenue under section 64.9 124.323; plus 64.10 (4) the levy percentage factor for that year times the 64.11 district's secondary vocational education for children with a 64.12 disability revenue under section 124.574 ; plus64.13 (5) the levy percentage factor for that year times the64.14 district's limited English proficiency programs revenue under64.15 section 124.273. 64.16 Sec. 24. Minnesota Statutes 1996, section 124.323, 64.17 subdivision 1, is amended to read: 64.18 Subdivision 1. [DEFINITIONS.] In this section, the 64.19 definitions in this subdivision apply. 64.20 (a) "Unreimbursed special education cost" means the sum of 64.21 the following: 64.22 (1) expenditures for teachers' salaries, contracted 64.23 services, supplies, andequipment, and transportation services 64.24 eligible for revenue under sections 124.3201 and 124.3202; plus 64.25 (2) expenditures for tuition bills received under section 64.26 120.17 for services eligible for revenue under sections 64.27 124.3201, subdivision 2, and 124.3202, subdivision 1; minus 64.28 (3) revenue for teachers' salaries, contracted services, 64.29 supplies, and equipment under sections 124.3201 and 124.3202; 64.30 minus 64.31 (4) tuition receipts under section 120.17 for services 64.32 eligible for revenue under sections 124.3201, subdivision 2, and 64.33 124.3202, subdivision 1. 64.34 (b) "General revenue," for fiscal year 1996, means the sum 64.35 of the general education revenue according to section 124A.22, 64.36 subdivision 1, as adjusted according to section 124A.036, 65.1 subdivision 5, plus the total referendum revenue according to 65.2 section 124A.03, subdivision 1e. For fiscal years 1997 and 65.3 later, "general revenue" means the sum of the general education 65.4 revenue according to section 124A.22, subdivision 1, as adjusted 65.5 according to section 124A.036, subdivision 5, plus the total 65.6 referendum revenue minus transportation sparsity revenue minus 65.7 total operating capital revenue. 65.8 Sec. 25. Minnesota Statutes 1996, section 124.323, 65.9 subdivision 2, is amended to read: 65.10 Subd. 2. [EXCESS COST REVENUE.] For 19961997 and later 65.11 fiscal years, a district's special education excess cost revenue 65.12 equals 70the greatest of: 65.13 (a) 70 percent of the difference between (1) the district's 65.14 unreimbursed special education cost and (2) six percent for65.15 fiscal year 1996 and5.7 percent for fiscal year 1997 and later 65.16 years of the district's general revenue; 65.17 (b) 70 percent of the difference between (1) the increase 65.18 in the district's unreimbursed special education cost between 65.19 the base year as defined in section 124.3201, subdivision 1, and 65.20 the current year and (2) 1.6 percent of the district's general 65.21 revenue; or 65.22 (c) zero. 65.23 Sec. 26. Minnesota Statutes 1996, section 124.481, is 65.24 amended to read: 65.25 124.481 [INDIAN POST-SECONDARY PREPARATION GRANTS.] 65.26 The state board of education, with the advice of the 65.27 Minnesota Indian scholarship committee, may make grants to 65.28 school districts or tribal grant or contract schools to support 65.29 post-secondary preparation for secondary pupils who are of 65.30 one-fourth or more Indian ancestry and who, in the opinion of 65.31 the superintendent, have the capabilities to benefit from higher 65.32 education. Distribution of the grants must be in accordance 65.33 with a plan prepared by the state board, with the advice of the 65.34 Minnesota Indian scholarship committee, that describes the 65.35 objectives and methods of implementing the grant program, 65.36 including the manner in which grants will be distributed in 66.1 proportion to the geographical distribution of the Indian 66.2 population of the state. 66.3 Sec. 27. Minnesota Statutes 1996, section 124.574, 66.4 subdivision 2d, is amended to read: 66.5 Subd. 2d. [BASE REVENUE.] (a) The secondary vocational66.6 school-to-work program-disabled programbase revenue equals the 66.7 sum of the following amounts computed using base year data: 66.8 (1) 68 percent of the salary of each essential licensed 66.9 person who provides direct instructional services to students 66.10 employed during that fiscal year for services rendered in that 66.11 district's secondary vocational education programs66.12 school-to-work program for children with a disability; 66.13 (2) 47 percent of the costs of necessary equipment for 66.14 secondary vocational education programsschool-to-work programs 66.15 for children with a disability; 66.16 (3) 47 percent of the costs of necessary travel between 66.17 instructional sites by secondary vocational education66.18 school-to-work program teachers of children with a disability 66.19 but not including travel to and from local, regional, district, 66.20 state, or national vocational student organization meetings; 66.21 (4) 47 percent of the costs of necessary supplies for 66.22 secondary vocational education programsschool-to-work programs 66.23 for children with a disability but not to exceed an average of 66.24 $47 in any one school year for each child with a disability 66.25 receiving these services; 66.26 (5) for secondary vocational education programs66.27 school-to-work programs for children with disabilities provided 66.28 by a contract approved by the commissioner with public, private, 66.29 or voluntary agencies other than a Minnesota school district or 66.30 cooperative center, in place of programs provided by the 66.31 district, 52 percent of the difference between the amount of the 66.32 contract and the basic revenue of the district for that pupil 66.33 for the fraction of the school day the pupil receives services 66.34 under the contract; 66.35 (6) for secondary vocational education programs66.36 school-to-work programs for children with disabilities provided 67.1 by a contract approved by the commissioner with public, private, 67.2 or voluntary agencies other than a Minnesota school district or 67.3 cooperative center, that are supplementary to a full educational 67.4 program provided by the school district, 52 percent of the 67.5 amount of the contract; and 67.6 (7) for a contract approved by the commissioner with 67.7 another Minnesota school district or cooperative center for 67.8 vocational evaluation services for children with a disability 67.9 for children that are not yet enrolled in grade 12, 52 percent 67.10 of the amount of the contract. 67.11 (b) If requested by a school district for school-to-work 67.12 programs during the base year for less than the full school 67.13 year, the commissioner may adjust the base revenue to reflect 67.14 the expenditures that would have occurred during the base year 67.15 had the program been operated for the full year. 67.16 Sec. 28. Minnesota Statutes 1996, section 124.574, 67.17 subdivision 2f, is amended to read: 67.18 Subd. 2f. [STATE TOTAL SECONDARY VOCATIONAL-DISABLED67.19 SCHOOL-TO-WORK PROGRAM-DISABLED REVENUE.] The state total 67.20 secondary vocational-disabledschool-to-work program-disabled 67.21 revenue for fiscal year 19961998 equals $8,520,000$8,924,000. 67.22 The state total secondary vocational-disabledschool-to-work 67.23 program-disabled revenue for fiscal year 19971999 equals 67.24 $8,830,000$8,976,000. The state total secondary67.25 vocational-disabledschool-to-work program-disabled revenue for 67.26 later fiscal years equals: 67.27 (1) the state total secondary vocational-disabled67.28 school-to-work program-disabled revenue for the preceding fiscal 67.29 year; times 67.30 (2) the program growth factor; times 67.31 (3) the ratio of the state total average daily membership 67.32 for the current fiscal year to the state total average daily 67.33 membership for the preceding fiscal year. 67.34 Sec. 29. Minnesota Statutes 1996, section 124.86, 67.35 subdivision 2, is amended to read: 67.36 Subd. 2. [REVENUE AMOUNT.] An American Indian-controlled 68.1 tribal contract or grant school that is located on a reservation 68.2 within the state and that complies with the requirements in 68.3 subdivision 1 is eligible to receive tribal contract or grant 68.4 school aid. The amount of aid is derived by: 68.5 (1) multiplying the formula allowance under section 68.6 124A.22, subdivision 2, less $170, times the difference between 68.7 (a) the actual pupil units as defined in section 124A.02, 68.8 subdivision 15, in average daily membership, excluding section 68.9 124.17, subdivision 2f, and (b) the number of pupils for the 68.10 current school year, weighted according to section 124.17, 68.11 subdivision 1, receiving benefits under section 123.933 or 68.12 123.935 or for which the school is receiving reimbursement under 68.13 section 126.23; 68.14 (2) adding to the result in clause (1) an amount equal to 68.15 the product of the formula allowance under section 124A.22, 68.16 subdivision 2, less $300 times the tribal contract compensation 68.17 revenue pupil units; 68.18 (3) subtracting from the result in clause (1)(2) the 68.19 amount of money allotted to the school by the federal government 68.20 through Indian School Equalization Program of the Bureau of 68.21 Indian Affairs, according to Code of Federal Regulations, title 68.22 25, part 39, subparts A to E, for the basic program as defined 68.23 by section 39.11, paragraph (b), for the base rate as applied to 68.24 kindergarten through twelfth grade, excluding small school 68.25 adjustments and additional weighting, but not money allotted 68.26 through subparts F to L for contingency funds, school board 68.27 training, student training, interim maintenance and minor 68.28 repair, interim administration cost, prekindergarten, and 68.29 operation and maintenance, and the amount of money that is 68.30 received according to section 126.23; 68.31 (3)(4) dividing the result in clause (2)(3) by the sum 68.32 of the actual pupil units in average daily membership, excluding 68.33 section 124.17, subdivision 2f, plus the tribal contract 68.34 compensation revenue pupil units; and 68.35 (4)(5) multiplying the sum of the actual pupil units, 68.36 including section 124.17, subdivision 2f, in average daily 69.1 membership plus the tribal contract compensation revenue pupil 69.2 units by the lesser of $1,500 or the sum of theresult in 69.3 clause (3) plus $300(4). 69.4 Sec. 30. Minnesota Statutes 1996, section 124.86, is 69.5 amended by adding a subdivision to read: 69.6 Subd. 5. [TRIBAL CONTRACT PUPIL UNITS.] Pupil units for 69.7 pupils enrolled in tribal contract schools shall be used only 69.8 for the purpose of computing tribal contract aid according to 69.9 this section. 69.10 Sec. 31. Minnesota Statutes 1996, section 124.912, 69.11 subdivision 6, is amended to read: 69.12 Subd. 6. [CRIME RELATED COSTS.] For taxes levied in 1991 69.13 and subsequent years, payable in 1992 and subsequent years, each 69.14 school district may make a levy on all taxable property located 69.15 within the school district for the purposes specified in this 69.16 subdivision. The maximum amount which may be levied for all 69.17 costs under this subdivision shall be equal to $1$1.50 69.18 multiplied by the population of the school district. For 69.19 purposes of this subdivision, "population" of the school 69.20 district means the same as contained in section 275.14. The 69.21 proceeds of the levy must be used for reimbursing the cities and 69.22 counties who contract with the school district for the following 69.23 purposes: (1) to pay the costs incurred for the salaries, 69.24 benefits, and transportation costs of peace officers and 69.25 sheriffs for liaison services in the district's middle and 69.26 secondary schools; (2) to pay the costs for a drug abuse 69.27 prevention program as defined in Minnesota Statutes 1991 69.28 Supplement, section 609.101, subdivision 3, paragraph (f), in 69.29 the elementary schools; or (3) to pay the costs for a gang 69.30 resistance education training curriculum in the middle schools. 69.31 The school district must initially attempt to contract for these 69.32 services with the police department of each city or the 69.33 sheriff's department of the county within the school district 69.34 containing the school receiving the services. If a local police 69.35 department or a county sheriff's department does not wish to 69.36 provide the necessary services, the district may contract for 70.1 these services with any other police or sheriff's department 70.2 located entirely or partially within the school district's 70.3 boundaries. The levy authorized under this subdivision is not 70.4 included in determining the school district's levy limitations. 70.5 Sec. 32. Minnesota Statutes 1996, section 124C.45, 70.6 subdivision 1a, is amended to read: 70.7 Subd. 1a. [RESERVE REVENUE.] Each school district that is 70.8 a member of an area learning center must reserve revenue in an 70.9 amount equal to at least 90 percent of the basicdistrict 70.10 average general education revenue generated by each studentless 70.11 compensatory revenue unit times the number of pupil units 70.12 attending an area learning center program under this section. 70.13 The amount of reserved revenue under this subdivision may only 70.14 be spent on program costs associated with the area learning 70.15 center. Compensatory revenue must be allocated according to 70.16 section 124A.28, subdivision 1a. 70.17 Sec. 33. Minnesota Statutes 1996, section 124C.498, 70.18 subdivision 3, is amended to read: 70.19 Subd. 3. [GRANT APPLICATION PROCESS.] (a) Any group of 70.20 school districts that meets the criteria required under 70.21 paragraph (b)(i) may apply for a magnet school grant in an 70.22 amount not to exceed $10,000,000$15,000,000 for the approved 70.23 costs or expansion of a magnet school facility. 70.24 (b)(i) Any group of districts that submits an application 70.25 for a grant shall submit a proposal to the commissioner for 70.26 review and comment under section 121.15, and the commissioner 70.27 shall prepare a review and comment on the proposed magnet school 70.28 facility, regardless of the amount of the capital expenditure 70.29 required to design, acquire, construct, remodel, improve, 70.30 furnish, or equip the facility. The commissioner must not 70.31 approve an application for a magnet school grant for any 70.32 facility unless the facility receives a favorable review and 70.33 comment under section 121.15 and the participating districts: 70.34 (1) establish a joint powers board under section 471.59 to 70.35 represent all participating districts and govern the magnet 70.36 school facility; 71.1 (2) design the planned magnet school facility to meet the 71.2 applicable requirements contained in Minnesota Rules, chapter 71.3 3535; 71.4 (3) submit a statement of need, including reasons why the 71.5 magnet school will facilitate integration and improve learning; 71.6 (4) prepare an educational plan that includes input from 71.7 both community and professional staff; and 71.8 (5) develop an education program that will improve learning 71.9 opportunities for students attending the magnet school. 71.10 (ii) The districts may develop a plan that permits social 71.11 service, health, and other programs serving students and 71.12 community residents to be located within the magnet school 71.13 facility. The commissioner shall consider this plan when 71.14 preparing a review and comment on the proposed facility. 71.15 (c) When two or more districts enter into an agreement 71.16 establishing a joint powers board to govern the magnet school 71.17 facility, all member districts shall have the same powers. 71.18 (d) A joint powers board of participating school districts 71.19 established under paragraphs (b) and (c) that intends to apply 71.20 for a grant shall adopt a resolution stating the costs of the 71.21 proposed project, the purpose for which the debt is to be 71.22 incurred, and an estimate of the dates when the contracts for 71.23 the proposed project will be completed. A copy of the 71.24 resolution must accompany any application for a state grant 71.25 under this section. 71.26 (e)(i) The commissioner shall examine and consider all 71.27 grant applications. If the commissioner finds that any joint 71.28 powers district is not a qualified grant applicant, the 71.29 commissioner shall promptly notify that joint powers board. The 71.30 commissioner shall make awards to no more than two qualified 71.31 applicants whose applications have been on file with the 71.32 commissioner more than 30 days. 71.33 (ii) A grant award is subject to verification by the joint 71.34 powers board under paragraph (f). A grant award must not be 71.35 made until the participating districts determine the site of the 71.36 magnet school facility. If the total amount of the approved 72.1 applications exceeds the amount of grant funding that is or can 72.2 be made available, the commissioner shall allot the available 72.3 amount equally between the approved applicant districts. The 72.4 commissioner shall promptly certify to each qualified joint 72.5 powers board the amount, if any, of the grant awarded to it. 72.6 (f) Each grant must be evidenced by a contract between the 72.7 joint powers board and the state acting through the 72.8 commissioner. The contract obligates the state to pay to the 72.9 joint powers board an amount computed according to paragraph 72.10 (e)(ii) and a schedule, and terms and conditions acceptable to 72.11 the commissioner of finance. 72.12 Sec. 34. Minnesota Statutes 1996, section 126.22, 72.13 subdivision 8, is amended to read: 72.14 Subd. 8. [ENROLLMENT VERIFICATION.] (a) For a pupil 72.15 attending an eligible program full time under subdivision 3, 72.16 paragraph (d), the department of children, families, and 72.17 learning shall pay 90 percent of the basicdistrict's average 72.18 general education revenue less compensatory revenue of the72.19 districtto the eligible program and ten percent of the basic72.20 district's average general education revenue less compensatory 72.21 revenue to the resident district within 30 days after the 72.22 eligible program verifies enrollment using the form provided by 72.23 the department. For a pupil attending an eligible program part 72.24 time, basicrevenue shall be reduced proportionately, according 72.25 to the amount of time the pupil attends the program, and the 72.26 payments to the eligible program and the resident district shall 72.27 be reduced accordingly. A pupil for whom payment is made 72.28 according to this section may not be counted by any district for 72.29 any purpose other than computation of basicgeneral education 72.30 revenue , according to section 124A.22, subdivision 2. If 72.31 payment is made for a pupil under this subdivision, a school 72.32 district shall not reimburse a program under section 126.23 for 72.33 the same pupil. Compensatory revenue shall be paid according to 72.34 section 124A.22, subdivision 3. 72.35 (b) The department of children, families, and learning 72.36 shall pay up to 100 percent of the basicrevenue to the eligible 73.1 program if there is an agreement to that effect between the 73.2 school district and the eligible program. 73.3 Sec. 35. [126.225] [ADDITIONAL REVENUE FOR HOMELESS 73.4 STUDENTS.] 73.5 In addition to revenue received under section 126.22, 73.6 subdivisions 7 and 8, and section 126.23, subdivision 1, a 73.7 district shall receive additional revenue for homeless pupils 73.8 who are eligible to participate in the graduation incentives 73.9 program according to section 126.22, subdivision 1, paragraph 73.10 (a), clause (9), equal to $100 per pupil unit. The revenue 73.11 received under this section shall be used for expanding 73.12 education services to include preschool, after-school, or summer 73.13 school programs to provide transition and follow-up services to 73.14 homeless pupils who are placed or mainstreamed in a district 73.15 school, or to provide parent education and support services. 73.16 The additional revenue shall be paid to the public or nonprofit 73.17 school program providing services to homeless pupils. A student 73.18 shall not be considered homeless under this section if the 73.19 student was displaced from home as a result of a natural 73.20 disaster. 73.21 Sec. 36. Minnesota Statutes 1996, section 126.23, 73.22 subdivision 1, is amended to read: 73.23 Subdivision 1. [AID.] If a pupil enrolls in an alternative 73.24 program, eligible under section 126.22, subdivision 3, paragraph 73.25 (d), or subdivision 3a, operated by a private organization that 73.26 has contracted with a school district to provide educational 73.27 services for eligible pupils under section 126.22, subdivision 73.28 2, the district contracting with the private organization must 73.29 reimburse the provider an amount equal to at least 90 percent of 73.30 the basicdistrict's average general education less compensatory 73.31 revenue of the district for each pupil attending the program73.32 full timeper pupil unit times the number of pupil units for 73.33 pupils attending the program. Compensatory revenue must be 73.34 allocated according to section 124A.28, subdivision 1a. For a 73.35 pupil attending the program part time, basicthe revenue paid to 73.36 the program shall be reduced proportionately, according to the 74.1 amount of time the pupil attends the program, and basicrevenue 74.2 paid to the district shall be reduced accordingly. Pupils for 74.3 whom a district provides reimbursement may not be counted by the 74.4 district for any purpose other than computation of basic74.5 revenue, according to section 124A.22, subdivision 2general 74.6 education revenue. If payment is made to a district or program 74.7 for a pupil under this section, the department of children, 74.8 families, and learning shall not make a payment for the same 74.9 pupil under section 126.22, subdivision 8. 74.10 Sec. 37. [126.256] [AMERICAN SIGN LANGUAGE.] 74.11 Satisfactory completion of courses in American sign 74.12 language in a public elementary or secondary school shall be 74.13 accorded equal standing with satisfactory completion of courses 74.14 in any world language. 74.15 Sec. 38. [126.79] [LEARN AND EARN GRADUATION ACHIEVEMENT 74.16 PROGRAM.] 74.17 Subdivision 1. [GRANT PROGRAM ESTABLISHED.] A learn and 74.18 earn graduation achievement grant program is established under 74.19 the administration of the commissioner of children, families, 74.20 and learning. The purpose of the program is to aid local 74.21 communities in their efforts to decrease youth crime by 74.22 improving the secondary educational success and increasing the 74.23 post-secondary educational opportunities of low-income high 74.24 school students who reside in and attend schools in communities 74.25 that have a high level of poverty and juvenile crime. The 74.26 commissioner shall make grants under this section to applicants 74.27 to establish local learn and earn programs that are 74.28 school-centered and that use a community-based approach that 74.29 provides eligible youth in grades 9 through 12 with individually 74.30 tailored opportunities for academic enrichment, community 74.31 service, and personal development that lead to a high school 74.32 diploma and post-secondary education. 74.33 Subd. 2. [PROGRAM OUTCOME MEASURES.] The goals of the 74.34 learn and earn graduation achievement program are to: 74.35 (1) increase school attendance; 74.36 (2) decrease school suspensions and dropouts; 75.1 (3) increase youth academic achievement, measured by 75.2 graduation rates and post-secondary enrollment; and 75.3 (4) decrease juvenile crime. 75.4 Subd. 3. [LOCAL PROGRAMS; APPLICATION PROCEDURE; GRANT 75.5 AWARDS.] The commissioner shall make grants to eligible 75.6 applicants to establish local learn and earn programs. Each 75.7 program shall operate for at least a four-year period. A local 75.8 program shall select its participants from among eligible 75.9 students who are entering or are in the ninth grade at the 75.10 inception of the program. A program may not refill a program 75.11 slot with another student if a student drops out of the program. 75.12 Students selected to participate in the program shall be 75.13 considered part of the program class and students who drop out 75.14 may return to the program at any time prior to graduation. 75.15 The commissioner shall establish the application procedure 75.16 for awarding grants under this section. The commissioner shall 75.17 begin awarding grants by September 1, 1997. 75.18 Subd. 4. [GRANT ELIGIBILITY.] An applicant for a grant 75.19 must be a public secondary school, a nonprofit community-based 75.20 agency cooperating with a secondary school, area learning 75.21 center, or alternative learning program approved by the 75.22 commissioner. Grant applicants must meet all of the following 75.23 criteria: 75.24 (1) at least 20 percent of the students at the 75.25 participating school or program are eligible to receive a free 75.26 school lunch; 75.27 (2) the area which the participating school or program 75.28 serves has a high juvenile crime rate or has experienced a 75.29 significant increase in juvenile crime over the past three 75.30 school years; 75.31 (3) the applicant has a designated program coordinator who 75.32 will coordinate school and community resources to provide 75.33 students with sufficient support and continuity to realize 75.34 program goals; and 75.35 (4) the applicant has established an advisory committee 75.36 that includes representatives of the students and families 76.1 served by the program and community organizations serving youth 76.2 and families. The applicant may use an existing advisory 76.3 committee that includes this representation. 76.4 At least 80 percent of a local learn and earn program's 76.5 participating students at the inception of the program must 76.6 reside in households with incomes at or below the federal 76.7 poverty level adjusted for family size. 76.8 The commissioner shall give priority to funding local learn 76.9 and earn programs that serve those communities that have the 76.10 highest juvenile crime rates and the largest concentrations of 76.11 economically disadvantaged youth. 76.12 Subd. 5. [STUDENT ELIGIBILITY.] A student is eligible to 76.13 participate in a local learn and earn program if the student: 76.14 (1) is enrolled in the participating school; 76.15 (2) is entering or is in the ninth grade at the inception 76.16 of the program; and 76.17 (3) resides in a household whose income is at or below the 76.18 federal poverty level adjusted for family size, has been 76.19 recommended for the program by a teacher or other community 76.20 member, has requested to participate, or whose participation has 76.21 been requested by a family member, according to a procedure to 76.22 be developed by the applicant. 76.23 Subd. 6. [PROGRAM COMPONENTS.] Each learn and earn 76.24 graduation achievement program must provide the opportunity for 76.25 participating students to complete: 76.26 (1) 250 hours each year, not including regular required 76.27 classroom hours, in basic education competency skills; 76.28 (2) 250 hours each year of community service; and 76.29 (3) 250 hours each year of cultural enrichment and personal 76.30 development, including but not limited to adult mentoring; 76.31 participating in community cultural events; developing life 76.32 skills for use in the home, workplace, and community; and 76.33 learning to set goals, manage time, and make appropriate 76.34 behavior choices for varying social situations. 76.35 Subd. 7. [PROGRAM INCENTIVES.] (a) Each participating 76.36 student shall receive a monetary stipend for each hour spent in 77.1 a program component activity, plus a bonus upon completion of 77.2 each component during each year of the program. 77.3 (b) An additional amount equal to or greater than each 77.4 student's earned stipends and bonuses must be deposited for the 77.5 student in a post-secondary opportunities interest-bearing 77.6 account, established by the commissioner through the higher 77.7 education services office. A student may, upon graduation from 77.8 high school, use the funds accumulated for the student toward 77.9 the costs of attending a Minnesota post-secondary institution or 77.10 participating in a Minnesota post-secondary program. Funds 77.11 accumulated for a student shall be available to the student from 77.12 the time the student graduates from high school until ten years 77.13 after the date the student entered the learn and earn graduation 77.14 achievement program. After ten years, the commissioner shall 77.15 close the student's account and any remaining money in the 77.16 account shall revert to the general fund. 77.17 The commissioner shall establish a procedure for providing 77.18 the monetary stipends and bonuses to students. The commissioner 77.19 may delegate this authority to grantees. 77.20 Subd. 8. [PROGRAM COORDINATOR.] The local learn and earn 77.21 program coordinator must maintain contact with all participating 77.22 students and their families; work with the school to link 77.23 students with the resources needed to improve their educational 77.24 skills; arrange for community service and cultural enrichment 77.25 opportunities for students; maintain records regarding student 77.26 completion of program component hours; and perform other 77.27 administrative duties as necessary. A program coordinator must, 77.28 to the extent possible, agree to remain with the program for 77.29 four years to provide continuity of adult contact to the 77.30 participating students. 77.31 Subd. 9. [EVALUATION AND REPORTS.] The commissioner shall 77.32 collect information about participating students and a 77.33 demographically similar control group and shall evaluate the 77.34 short-term and long-term benefits participating students receive 77.35 from the learn and earn graduation achievement program, based on 77.36 the outcome measures specified in subdivision 2, and any other 78.1 criteria established by the commissioner as part of the grant 78.2 application process. The evaluation must include a statistical 78.3 comparison of students participating in the program and the 78.4 control group. The commissioner shall track participating 78.5 students and the control group for a minimum of six years from 78.6 the start of the program. The commissioner shall submit a 78.7 preliminary report to the governor and the chairs of the senate 78.8 and house committees having jurisdiction over education and 78.9 crime prevention by December 15, 2000, regarding continuation of 78.10 the learn and earn graduation achievement program for 78.11 participating schools and expansion of the program to additional 78.12 schools. The commissioner shall submit a final report by 78.13 December 15, 2002. 78.14 Sec. 39. Minnesota Statutes 1996, section 128B.10, 78.15 subdivision 1, is amended to read: 78.16 Subdivision 1. [EXTENSION.] This chapter is repealed July78.17 1, 1997remains in effect until otherwise provided by law. 78.18 Sec. 40. Minnesota Statutes 1996, section 245.493, 78.19 subdivision 1, is amended to read: 78.20 Subdivision 1. [REQUIREMENTS TO QUALIFY AS A LOCAL 78.21 CHILDREN'S MENTAL HEALTH COLLABORATIVE.] In order to qualify as 78.22 a local children's mental health collaborative and be eligible 78.23 to receive start-up funds, the representatives of the local 78.24 system of care, or at a minimum one county, one school district 78.25 or special education cooperative, and one mental health entity 78.26 must agree to the following: 78.27 (1) to establish a local children's mental health 78.28 collaborative and develop an integrated service system; and78.29 (2) to commit resources to providing services through the 78.30 local children's mental health collaborative; and 78.31 (3) develop a plan to contribute funds to the children's 78.32 mental health collaborative. 78.33 Sec. 41. Minnesota Statutes 1996, section 260A.02, 78.34 subdivision 3, is amended to read: 78.35 Subd. 3. [CONTINUING TRUANT.] "Continuing truant" means a 78.36 child who is subject to the compulsory instruction requirements 79.1 of section 120.101 and is absent from instruction in a school, 79.2 as defined in section 120.05, without valid excuse within a 79.3 single school year for: 79.4 (1) three days if the child is in elementary school; or 79.5 (2) three or more class periods on three days if the child 79.6 is in middle school, junior high school, or high school. 79.7 A child is not a continuing truant if the child is79.8 withdrawn from school by the child's parents because of a79.9 dispute with the school concerning the provision of special79.10 education services under the Individuals with Disabilities79.11 Education Act or accommodations and modifications under the79.12 Americans with Disabilities Act, if the parent makes good faith79.13 efforts to provide the child educational services from any other79.14 source. No parent who withdraws a child from school during a79.15 dispute with the school concerning the provision of special79.16 education services or accommodations and modifications is79.17 required to file home school papers, if the parent provides79.18 written notice to the department of children, families, and79.19 learning or the district of the plan for the child's education.79.20 Nothing in this section shall prevent a school district 79.21 from notifying a truant child's parent or legal guardian of the 79.22 child's truancy or otherwise addressing a child's attendance 79.23 problems prior to the child becoming a continuing truant. 79.24 Sec. 42. Laws 1994, chapter 647, article 7, section 18, 79.25 subdivision 2, is amended to read: 79.26 Subd. 2. [ELIGIBILITY; APPLICATION.] A school district or 79.27 a group of school districts that have entered into a joint 79.28 powers agreement under Minnesota Statutes, section 471.59, to 79.29 provide for a magnet school or magnet program is eligible to 79.30 apply for an educational performance improvement grant. The 79.31 application shall be on a form approved by the commissioner of 79.32 education. The commissioner shall make recommendations to the 79.33 state board of education on which districts should be considered 79.34 for a grant contract. The commissioner shall give priority to 79.35 school districts: 79.36 (1) in which at least one school has received a school 80.1 improvement incentive grant under Minnesota Statutes 1993 80.2 Supplement, section 121.602, subdivision 5; and 80.3 (2) that demonstrate a commitment to increasing 80.4 accountability by using a results-oriented system for measuring 80.5 student achievement. 80.6 Sec. 43. Laws 1994, chapter 647, article 7, section 18, 80.7 subdivision 3, is amended to read: 80.8 Subd. 3. [CONTRACT.] The state board of education may 80.9 enter into a one-year contract with a school district or group 80.10 of school districts for the purpose of awarding an educational 80.11 performance improvement grant. The state board shall award a 80.12 grant only for measurable gains in student achievement. The 80.13 terms of the contract shall at minimum address: 80.14 (1) the criteria and assessments to be used in measuring 80.15 student achievement; 80.16 (2) the district'sbaseline level of student achievement 80.17 for the district or group of districts; 80.18 (3) the level of student achievement, desegregation or 80.19 diversity, or improved operations to be reached under the 80.20 contract; 80.21 (4) a timeline for determining whether the contract goals 80.22 have been met; and 80.23 (5) at the discretion of the state board, provisions 80.24 governing the award of a partial grant to the district or group 80.25 of districts if the contract goals are not fully met. 80.26 Sec. 44. Laws 1995, First Special Session chapter 3, 80.27 article 3, section 11, subdivision 1, is amended to read: 80.28 Subdivision 1. [PURPOSE.] A pilot program is established 80.29 to support general education classroom teachers who teach 80.30 children with specific learning disabilities. The goals of the 80.31 pilot program are to: 80.32 (1) increase participation of these children in 80.33 noncategorical programming designed to encourage their maximum 80.34 potential and maintain their self-esteem; 80.35 (2) demonstrate results in measurable educational outcomes; 80.36 (3) provide alternatives to special education that focus on 81.1 children's educational progress and results, respond to the 81.2 individual child, are efficient and cost-effective, and ensure 81.3 the rights of eligible children and their families to due 81.4 process; 81.5 (4) increase general education's ability to educate in a 81.6 manner that decreases the need for pull-out programs for 81.7 students with specific learning disabilities; and81.8 (5) implement alternative approaches to conflict 81.9 resolution; and 81.10 (6) provide assistive technology to make individualized 81.11 student accommodations. 81.12 Sec. 45. Laws 1995, First Special Session chapter 3, 81.13 article 3, section 11, subdivision 2, is amended to read: 81.14 Subd. 2. [DEFINITIONS.] For the purposes of this section 81.15 the terms defined in this subdivision have the meanings given 81.16 them. 81.17 (a) "Accommodation" means any technique that alters the 81.18 educational setting to enable the child to reach the child's 81.19 maximum potential and to demonstrate more accurately the child's 81.20 knowledge and educational progress. Accommodations may include, 81.21 but are not limited to: preferential seating, paraphrasing of 81.22 information, instructions, practice activities and directions 81.23 provided in a manner consistent with the child's learning style, 81.24 opportunity for increased response time, more frequent 81.25 opportunity for review, extended time to complete assignments 81.26 and tests, larger print for assignments or tests, special study 81.27 sheets, extended or untimed tests, oral testing and answering, 81.28 and use of assistive technology within and outside the 81.29 educational environment. 81.30 (b) "Assistive technology device" means any item, piece of81.31 equipment, or product system, whether acquired commercially off81.32 the shelf, modified, or customized, that is used to increase,81.33 maintain, or improve functional capabilitiesis as defined in 81.34 Minnesota Statutes, section 120.187. 81.35 (c) "Competency" means a documented and demonstrated 81.36 attitude, skill, or knowledge base resulting in an ability of 82.1 general education personnel to provide accommodations, 82.2 modifications, and personalized instruction, according to the 82.3 eligible child's individual learning styles, within general 82.4 education environments. 82.5 (d) "Consistently available" means that education personnel 82.6 who demonstrate competency are site-based and designated as a 82.7 resource for the development and use of accommodations, 82.8 modifications, and personalized instruction in general education. 82.9 (e) "Eligible children" means those children who have 82.10 specific learning disabilities or conditions related to these 82.11 disabilities according to recognized professional standards and 82.12 documented by appropriately licensed personnel. 82.13 (f) "Learner plan" means a concise written plan that is 82.14 based on the eligible child's documented specific learning 82.15 disabilities and needs; includes the eligible child's strengths 82.16 that may compensate for those differences and needs; provides 82.17 the child, the child's parent, and all general education 82.18 personnel responsible for direct instruction with information 82.19 that results in clear understanding and subsequent use of 82.20 accommodations, modifications, and personalized instruction; and 82.21 includes methods of evaluating the child's progress that are 82.22 consistent with learning differences, needs, strengths, 82.23 modifications, and accommodations, and are at intervals 82.24 identical to the student population of the school in which the 82.25 child participating in Options Plus is enrolled. 82.26 (g) "Modification" means any technique that alters the 82.27 school work required, makes it different from the school work 82.28 required or other students in the same course, and encourages 82.29 the eligible child to reach the child's maximum potential and 82.30 facilitate educational success. Modifications may include, but 82.31 are not limited to: copies of teacher notes and lesson plans, 82.32 assisted note taking, reduced or altered assignments, increased 82.33 assignments in areas of strength, alternative test formats, 82.34 modified testing, peer assistance, cooperative learning, and 82.35 modified grading such as documentation of progress and results. 82.36 (h) "Parent" means a parent, guardian, or person acting as 83.1 a parent of a child. 83.2 (i) "Personalized instruction" means direct instruction 83.3 designed with knowledge of the child's learning style, 83.4 strengths, and differences, to assist the child to gain in skill 83.5 areas, so the child demonstrates progress toward and outcomes 83.6 necessary to become a successful citizen. 83.7 Sec. 46. Laws 1995, First Special Session chapter 3, 83.8 article 3, section 11, subdivision 5, is amended to read: 83.9 Subd. 5. [USE OF FUNDS.] Options Plus pilot program grants 83.10 shall be used to supplement staff development funding under 83.11 Minnesota Statutes, section 124A.29, to train general education 83.12 classroom teachers to meet the needs of children with specific 83.13 learning disabilities and provide assistive technology devices 83.14 in a general education setting. The training shall result in 83.15 each participating teacher achieving the following competencies: 83.16 (1) understanding and communicating to the parents of the 83.17 child the options available for instruction; 83.18 (2) the ability to assess the learning environment and 83.19 provide the necessary accommodations, modifications, and 83.20 personalized instruction necessary to meet the needs of the 83.21 child; and83.22 (3) the ability to work collaboratively and in teams with 83.23 other teachers and support and related services staff; and 83.24 (4) the ability to teach children to use the assistive 83.25 technology devices. 83.26 Sec. 47. [AMERICAN SIGN LANGUAGE RECOGNIZED AS A WORLD 83.27 LANGUAGE.] 83.28 The Minnesota state legislature recognizes American sign 83.29 language as a fully developed, autonomous, natural language with 83.30 distinct grammar, syntax, vocabulary, and cultural heritage 83.31 which is used by a variety of deaf, hard-of-hearing, deaf-blind 83.32 and hearing individuals in the United States, and hereby 83.33 determines that American sign language should be accorded equal 83.34 status with other linguistic systems in the state's public 83.35 elementary and secondary and higher education systems. 83.36 Sec. 48. [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 84.1 HOMELESS CHILDREN.] 84.2 A school district or a nonprofit entity contracting with a 84.3 school district to provide education and transition services for 84.4 homeless children is eligible for a matching grant for capital 84.5 facilities which serve homeless children and their families. 84.6 Grant proceeds may be used to design, furnish, equip, acquire, 84.7 repair, or construct a facility for providing education and 84.8 transition services for homeless pupils. To obtain a grant, a 84.9 school district or nonprofit entity must submit an application 84.10 to the commissioner of children, families, and learning in the 84.11 form and manner the commissioner establishes. Grants must be 84.12 matched by $1 of nonstate money for every $1 of grant money 84.13 received. The commissioner shall take into consideration the 84.14 number of concentration of homeless children served by a school 84.15 district when awarding grants. The commissioner may award 84.16 matching grants of up to $500,000 per school district. 84.17 Sec. 49. [OSSEO LEVY.] 84.18 For levies payable in 1998 only, independent school 84.19 district No. 279, Osseo, may levy a tax in an amount not to 84.20 exceed $800,000. The proceeds of this levy must be used to 84.21 provide instructional services for at-risk children. 84.22 Sec. 50. [PINE POINT SCHOOL.] 84.23 Notwithstanding Minnesota Statutes, section 128B.10, 84.24 subdivision 1, the other provisions of Minnesota Statutes, 84.25 chapter 128B, remain in effect after June 30, 1997. Actions 84.26 taken pursuant to Minnesota Statutes, chapter 128B, after June 84.27 30, 1997, and before the effective date of this section are 84.28 valid and ratified by this section. 84.29 Sec. 51. [APPROPRIATIONS.] 84.30 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 84.31 LEARNING.] The sums indicated in this section are appropriated, 84.32 unless otherwise indicated, from the general fund to the 84.33 department of children, families, and learning for the fiscal 84.34 years designated. 84.35 Subd. 2. [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 84.36 For grants to American Indian language and culture education 85.1 programs according to Minnesota Statutes, section 126.54, 85.2 subdivision 1: 85.3 $591,000 ..... 1998 85.4 $591,000 ..... 1999 85.5 The 1998 appropriation includes $59,000 for 1997 and 85.6 $532,000 for 1998. 85.7 The 1999 appropriation includes $59,000 for 1998 and 85.8 $532,000 for 1999. 85.9 Any balance in the first year does not cancel but is 85.10 available in the second year. 85.11 Subd. 3. [AMERICAN INDIAN EDUCATION.] (a) For certain 85.12 American Indian education programs in school districts: 85.13 $175,000 ..... 1998 85.14 $175,000 ..... 1999 85.15 The 1998 appropriation includes $17,000 for 1997 and 85.16 $158,000 for 1998. 85.17 The 1999 appropriation includes $17,000 for 1998 and 85.18 $158,000 for 1999. 85.19 (b) These appropriations are available for expenditure with 85.20 the approval of the commissioner of the department of children, 85.21 families, and learning. 85.22 (c) The commissioner must not approve the payment of any 85.23 amount to a school district or school under this subdivision 85.24 unless that school district or school is in compliance with all 85.25 applicable laws of this state. 85.26 (d) Up to the following amounts may be distributed to the 85.27 following schools and school districts for each fiscal year: 85.28 $54,800, Pine Point School; $9,800 to independent school 85.29 district No. 166, Cook county; $14,900 to independent school 85.30 district No. 432, Mahnomen; $14,200 to independent school 85.31 district No. 435, Waubun; $42,200 to independent school district 85.32 No. 707, Nett Lake; and $39,100 to independent school district 85.33 No. 38, Red Lake. These amounts must be spent only for the 85.34 benefit of American Indian pupils and to meet established state 85.35 educational standards or statewide requirements. 85.36 (e) Before a district or school can receive money under 86.1 this subdivision, the district or school must submit, to the 86.2 commissioner, evidence that it has complied with the uniform 86.3 financial accounting and reporting standards act, Minnesota 86.4 Statutes, sections 121.904 to 121.917. 86.5 Subd. 4. [AMERICAN INDIAN POST-SECONDARY PREPARATION 86.6 GRANTS.] For American Indian post-secondary preparation grants 86.7 according to Minnesota Statutes, section 124.481: 86.8 $857,000 ..... 1998 86.9 $857,000 ..... 1999 86.10 Any balance in the first year does not cancel but is 86.11 available in the second year. 86.12 Subd. 5. [AMERICAN INDIAN SCHOLARSHIPS.] For American 86.13 Indian scholarships according to Minnesota Statutes, section 86.14 124.48: 86.15 $1,600,000 ..... 1998 86.16 $1,600,000 ..... 1999 86.17 Any balance in the first year does not cancel but is 86.18 available in the second year. 86.19 Subd. 6. [INDIAN TEACHER PREPARATION GRANTS.] (a) For 86.20 joint grants to assist Indian people to become teachers: 86.21 $190,000 ..... 1998 86.22 $190,000 ..... 1999 86.23 (b) Up to $70,000 each year is for a joint grant to the 86.24 University of Minnesota at Duluth and the Duluth school district. 86.25 (c) Up to $40,000 each year is for a joint grant to each of 86.26 the following: 86.27 (1) Bemidji state university and the Red Lake school 86.28 district; 86.29 (2) Moorhead state university and a school district located 86.30 within the White Earth reservation; and 86.31 (3) Augsburg college, independent school district No. 625, 86.32 St. Paul, and the Minneapolis school district. 86.33 (d) Money not used for students at one location may be 86.34 transferred for use at another location. 86.35 (e) Any balance in the first year does not cancel but is 86.36 available in the second year. 87.1 Subd. 7. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 87.2 school aid according to Minnesota Statutes, section 124.86: 87.3 $2,287,000 ..... 1998 87.4 $2,797,000 ..... 1999 87.5 The 1998 appropriation includes $91,000 for 1997 and 87.6 $2,196,000 for 1998. 87.7 The 1999 appropriation includes $244,000 for 1998 and 87.8 $2,553,000 for 1999. 87.9 Subd. 8. [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For 87.10 early childhood family education programs at tribal contract 87.11 schools: 87.12 $68,000 ..... 1998 87.13 $68,000 ..... 1999 87.14 Subd. 9. [AMERICAN SIGN LANGUAGE; TEACHER EDUCATION 87.15 HEARING.] To assist school districts in educating teachers in 87.16 American sign language: 87.17 $13,000 ..... 1998 87.18 $12,000 ..... 1999 87.19 Any balance in the first year does not cancel but is 87.20 available in the second year. 87.21 Subd. 10. [MEXICAN ORIGIN EDUCATION GRANTS.] For grants 87.22 for a Mexican origin education pilot grant program: 87.23 $50,000 ..... 1998 87.24 $25,000 ..... 1999 87.25 Any balance in the first year does not cancel but is 87.26 available in the second year. 87.27 Subd. 11. [LAY ADVOCATES.] To pay or reimburse lay 87.28 advocates for their time and expense as provided in Minnesota 87.29 Statutes, section 120.17: 87.30 $10,000 ..... 1998 87.31 This appropriation is available until June 30, 1999. 87.32 Subd. 12. [OPTIONS PLUS PILOT GRANTS.] For grants to 87.33 school districts for options plus pilot programs: 87.34 $150,000 ..... 1998 87.35 Each grant shall not exceed $50,000. 87.36 This appropriation is available until June 30, 1999. 88.1 Subd. 13. [MAGNET SCHOOL GRANTS.] For magnet school and 88.2 program grants: 88.3 $5,750,000 ..... 1998 88.4 $1,750,000 ..... 1999 88.5 These amounts may be used for magnet school programs and 88.6 acquisition and betterment of magnet school facilities according 88.7 to Minnesota Statutes, section 124C.498. 88.8 Subd. 14. [INTEGRATION PROGRAMS.] For grants according to: 88.9 minority fellowship grants according to Laws 1994, chapter 647, 88.10 article 8, section 29; minority teacher incentives according to 88.11 Minnesota Statutes, section 124.278; teachers of color grants 88.12 according to Minnesota Statutes, section 125.623; and cultural 88.13 exchange grants according to Minnesota Statutes, section 126.43: 88.14 $1,000,000 ..... 1998 88.15 $1,000,000 ..... 1999 88.16 Any balance in the first year does not cancel but is 88.17 available in the second year. 88.18 In awarding teacher of color grants, priority must be given 88.19 to districts that have students who are currently in the process 88.20 of completing their academic program. 88.21 Subd. 15. [SPECIAL EDUCATION AID.] For special education 88.22 aid according to Minnesota Statutes, section 124.32: 88.23 $282,505,000 ..... 1998 88.24 $382,519,000 ..... 1999 88.25 The 1998 appropriation includes $24,346,000 for 1997 and 88.26 $258,159,000 for 1998. 88.27 The 1999 appropriation includes $28,684,000 for 1998 and 88.28 $353,835,000 for 1999. 88.29 Subd. 16. [AID FOR CHILDREN WITH A DISABILITY.] For aid 88.30 according to Minnesota Statutes, section 124.32, subdivision 6, 88.31 for children with a disability placed in residential facilities 88.32 within the district boundaries for whom no district of residence 88.33 can be determined: 88.34 $586,000 ..... 1998 88.35 $644,000 ..... 1999 88.36 If the appropriation for either year is insufficient, the 89.1 appropriation for the other year is available. Any balance in 89.2 the first year does not cancel but is available in the second 89.3 year. 89.4 Subd. 17. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 89.5 teacher travel for home-based services according to Minnesota 89.6 Statutes, section 124.32, subdivision 2b: 89.7 $107,000 ..... 1998 89.8 $111,000 ..... 1999 89.9 The 1998 appropriation includes $8,000 for 1997 and $99,000 89.10 for 1998. 89.11 The 1999 appropriation includes $10,000 for 1998 and 89.12 $101,000 for 1999. 89.13 Subd. 18. [SPECIAL EDUCATION EXCESS COST AID.] For excess 89.14 cost aid: 89.15 $25,974,000 ..... 1998 89.16 $44,984,000 ..... 1999 89.17 The 1998 appropriation includes $1,242,000 for 1997 and 89.18 $24,732,000 for 1998. 89.19 The 1999 appropriation includes $2,748,000 for 1998 and 89.20 $42,236,000 for 1999. 89.21 Subd. 19. [TARGETED NEEDS AID.] For targeted needs aid: 89.22 $47,225,000 ..... 1998 89.23 $ 2,899,000 ..... 1999 89.24 (a) Of the 1998 amount, $930,000 is for 1997 limited 89.25 English proficiency aid and $13,694,000 is for 1998 limited 89.26 English proficiency aid. Of the 1998 amount, $1,364,000 is for 89.27 1997 assurance of mastery aid and $12,393,000 is for 1998 89.28 assurance of mastery aid. Of the 1998 amount, $18,844,000 is 89.29 for 1998 integration aid. 89.30 (b) Of the 1999 amount, $1,522,000 is for 1998 limited 89.31 English proficiency aid and $0 is for 1999 limited English 89.32 proficiency aid. Of the 1999 amount, $1,377,000 is for 1998 89.33 assurance of mastery aid and $0 is for 1999 assurance of mastery 89.34 aid. 89.35 (c) As a condition of receiving a grant, each district must 89.36 continue to report its costs according to the uniform financial 90.1 accounting and reporting system. As a further condition of 90.2 receiving a grant, each district must submit a report to the 90.3 chairs of the education committees of the legislature about the 90.4 actual expenditures it made for integration using the grant 90.5 money including achievement results. These grants may be used 90.6 to transport students attending a nonresident district under 90.7 Minnesota Statutes, section 120.062, to the border of the 90.8 resident district. A district may allocate a part of the grant 90.9 to the transportation fund for this purpose. 90.10 Subd. 20. [SCHOOL-TO-WORK PROGRAMS; STUDENTS WITH 90.11 DISABILITIES.] For aid for school-to-work programs for pupils 90.12 with disabilities according to Minnesota Statutes, section 90.13 124.574: 90.14 $7,044,000 ..... 1998 90.15 $7,985,000 ..... 1999 90.16 The 1998 appropriation includes $618,000 for 1997 and 90.17 $6,426,000 for 1998. 90.18 The 1999 appropriation includes $713,000 for 1998 and 90.19 $7,272,000 for 1999. 90.20 Subd. 21. [SPECIAL PROGRAMS EQUALIZATION AID.] For special 90.21 education levy equalization aid according to Minnesota Statutes, 90.22 section 124.321: 90.23 $11,195,000 ..... 1998 90.24 $ 5,780,000 ..... 1999 90.25 The 1998 appropriation includes $1,783,000 for 1997 and 90.26 $9,412,000 for 1998. 90.27 The 1999 appropriation includes $1,045,000 for 1998 and 90.28 $4,735,000 for 1999. 90.29 Subd. 22. [INTEGRATION AID.] For integration aid: 90.30 $26,124,000 ..... 1999 90.31 This appropriation is based on an entitlement of 90.32 $29,026,000. 90.33 Subd. 23. [CENTRAL MINNESOTA AREA LEARNING CENTER.] For a 90.34 grant to two or more of the following school districts, 90.35 independent school district Nos. 47, Sauk Rapids; 51, Foley; 90.36 738, Holdingford; 739, Kimball; 742, St. Cloud; 748, Sartell; 91.1 and 750, Cold Spring, that form a joint powers agreement under 91.2 Minnesota Statutes, section 471.59, to establish the central 91.3 Minnesota area learning center: 91.4 $130,000 ..... 1998 91.5 This appropriation is available until June 30, 1999. 91.6 Subd. 24. [ADDITIONAL REVENUE FOR HOMELESS STUDENTS.] For 91.7 additional revenue for homeless students according to Minnesota 91.8 Statutes, section 126.225: 91.9 $180,000 ..... 1998 91.10 $200,000 ..... 1999 91.11 The 1998 appropriation includes $0 for 1997 and $180,000 91.12 for 1998. 91.13 The 1999 appropriation includes $20,000 for 1998 and 91.14 $180,000 for 1999. 91.15 Subd. 25. [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 91.16 HOMELESS CHILDREN.] For matching grants for education programs 91.17 for homeless children: 91.18 $400,000 ..... 1998 91.19 This appropriation is available until June 30, 1999. 91.20 Subd. 26. [LOW-INCOME CONCENTRATION GRANTS.] For 91.21 low-income concentration grants under Laws 1994, chapter 647, 91.22 article 8, section 43: 91.23 $1,000,000 ..... 1998 91.24 The commissioner shall also award a grant to a school 91.25 building that has at least 20 percent students of color and 91.26 where at least 20 percent of the students are eligible for free 91.27 or reduced-price lunch if that school building is located in a 91.28 city where all the school buildings in that city are eligible 91.29 for low-income concentration grants. 91.30 Subd. 27. [NETT LAKE.] For grants to independent school 91.31 district No. 707, Nett Lake: 91.32 $99,000 ..... 1998 91.33 $60,000 ..... 1999 91.34 $39,000 in 1998 is for a grant to independent school 91.35 district No. 707, Nett Lake, to reimburse the district for 91.36 property and boiler insurance premiums paid in fiscal years 1996 92.1 and 1997. 92.2 $30,000 in 1998 and $30,000 in 1999 are for grants to 92.3 independent school district No. 707, Nett Lake, to pay property 92.4 insurance and boiler insurance premiums, and insurance premiums 92.5 under Minnesota Statutes, section 466.06. 92.6 $30,000 in 1998 and $30,000 in 1999 are for grants to 92.7 independent school district No. 707, Nett Lake, for the payment 92.8 of obligations of the school district for unemployment 92.9 compensation. The appropriation must be paid to the appropriate 92.10 state agency for such purposes in the name of the school 92.11 district. 92.12 Subd. 28. [NETT LAKE MEDIA SPECIALIST.] For a grant to 92.13 independent school district No. 707, Nett Lake, for a media 92.14 specialist for preschool through grade 6: 92.15 $35,000 ..... 1998 92.16 Subd. 29. [FIRST GRADE PREPAREDNESS.] (a) For grants for 92.17 the first grade preparedness program under Minnesota Statutes, 92.18 section 124.2613, and for school sites that have provided a 92.19 full-day kindergarten option for kindergarten students enrolled 92.20 in fiscal years 1996 and 1997: 92.21 $5,000,000 ..... 1998 92.22 $5,000,000 ..... 1999 92.23 (b) To be a qualified site, licensed teachers must have 92.24 taught the optional full-day kindergarten classes. A district 92.25 that charged a fee for students participating in an optional 92.26 full-day program is eligible to receive the grant to provide 92.27 full-day kindergarten for all students as required by Minnesota 92.28 Statutes, section 124.2613, subdivision 4. Districts with 92.29 eligible sites must apply to the commissioner of children, 92.30 families, and learning for a grant. 92.31 (c) This appropriation must first be used to fund programs 92.32 operating during the 1996-1997 school year under paragraph (b) 92.33 and Minnesota Statutes, section 124.2613. Any remaining funds 92.34 may be used to expand the number of sites providing first grade 92.35 preparedness programs. 92.36 Subd. 30. [EDUCATION PERFORMANCE IMPROVEMENT GRANTS.] For 93.1 additional grants under Laws 1994, chapter 647, article 7, 93.2 section 18, as amended: 93.3 $1,100,000 ..... 1998 93.4 Consistent with the provisions of Laws 1994, chapter 647, 93.5 article 7, section 18, as amended, a grant recipient that is a 93.6 group of school districts that have entered into a joint powers 93.7 agreement may use the grant proceeds to enhance student 93.8 achievement and metropolitan desegregation. Grant recipients 93.9 must comply with the achievement plan according to Minnesota 93.10 Statutes, section 123.951, subdivision 4. 93.11 This appropriation is available until June 30, 1999. 93.12 Subd. 31. [CENTER FOR THE VICTIMS OF TORTURE.] For the 93.13 center for victims of torture to hire a full-time psychologist 93.14 to address behavioral problems exhibited by students in the 93.15 public schools who are survivors of war traumas: 93.16 $60,000 ..... 1998 93.17 $60,000 ..... 1999 93.18 Subd. 32. [ADOLESCENT PARENT PROGRAM GRANTS.] For 93.19 adolescent parent program grants: 93.20 $500,000 ..... 1998 93.21 Up to 2-1/2 percent of the appropriation may be used for 93.22 evaluation of the programs. 93.23 Any balance in the first year does not cancel but is 93.24 available in the second year. 93.25 Subd. 33. [LEARN AND EARN GRADUATION ACHIEVEMENT PROGRAM.] 93.26 For the learn and earn graduation achievement program according 93.27 to Minnesota Statutes, section 126.79: 93.28 $1,000,000 ..... 1998 93.29 $1,000,000 ..... 1999 93.30 Any balance in the first year does not cancel but is 93.31 available in the second year. 93.32 Subd. 34. [ONE ROOM SCHOOLHOUSE.] For a grant to 93.33 independent school district No. 690, Warroad, to operate the 93.34 Angle Inlet School: 93.35 $25,000 ..... 1998 93.36 $25,000 ..... 1999 94.1 Subd. 35. [SPECIAL PROGRAM; FETAL ALCOHOL SYNDROME.] The 94.2 sum indicated in this subdivision is appropriated from the 94.3 general fund to the commissioner of health for the fiscal year 94.4 designated. To prevent and reduce harm from fetal alcohol 94.5 syndrome and fetal alcohol effect: 94.6 $500,000 ..... 1998 94.7 This amount is added to the appropriation for the same 94.8 purpose in Laws 1997, chapter 203, article 1, section 3, 94.9 subdivision 2. 94.10 This appropriation is available until June 30, 1999. 94.11 Sec. 52. [REPEALER.] 94.12 Subdivision 1. [JULY 1, 1996.] Minnesota Statutes 1996, 94.13 section 124.3201, subdivisions 2a and 2b, are retroactively 94.14 repealed effective July 1, 1996. 94.15 Subd. 2. [JUNE 1, 1997.] Minnesota Statutes 1996, section 94.16 124.17, subdivision 5, is retroactively repealed effective June 94.17 1, 1997. 94.18 Sec. 53. [EFFECTIVE DATE.] 94.19 (a) Sections 4, 23, and 24 are effective for fiscal year 94.20 1999. 94.21 (b) Sections 6, 7, 21, and 25 are effective retroactively 94.22 to July 1, 1996. 94.23 (c) Sections 32 and 36 are effective for the 1997-1998 94.24 school year and thereafter. 94.25 (d) If this act is enacted on or after July 1, 1997, all 94.26 sections in this article except for those sections listed in 94.27 paragraphs (a) to (c) are effective the day following final 94.28 enactment. 94.29 ARTICLE 3 94.30 LIFEWORK DEVELOPMENT 94.31 Section 1. [121.498] [MINNESOTA CAREER INFORMATION 94.32 SYSTEM.] 94.33 (a) The department of children, families, and learning, 94.34 through the Minnesota career information system (MCIS), may 94.35 provide career information to, including, but not limited to, 94.36 school districts and other educational organizations, employment 95.1 and training services, human service agencies, libraries, and 95.2 families. The department shall collect fees necessary to 95.3 recover all expenditures related to the operation of the 95.4 Minnesota career information system. 95.5 (b) Grants and other legislative funds may be accepted and 95.6 used for the improvement or operation of the Minnesota career 95.7 information system. All receipts shall be deposited in a 95.8 special account in the special revenue fund that shall be 95.9 carried over at the end of each fiscal year. The money in the 95.10 account, along with any interest earned, is appropriated to the 95.11 commissioner of children, families, and learning for the 95.12 Minnesota career information system and must be for the sole use 95.13 and benefit of the system. The department shall recognize that 95.14 the Minnesota career information system operates under a 95.15 self-supporting directive, and accordingly, must provide 95.16 sufficient administrative latitude within the confines of law to 95.17 enable the system to operate effectively. 95.18 Sec. 2. Minnesota Statutes 1996, section 121.615, 95.19 subdivision 2, is amended to read: 95.20 Subd. 2. [CREATION OF FOUNDATION.] There is created the 95.21 Minnesota school-to-work student organization foundation. The 95.22 purpose of the foundation shall be to promote vocational student 95.23 organizations and applied leadership opportunities in Minnesota 95.24 public and nonpublic schools through public-private 95.25 partnerships. The foundation shall be a nonprofit 95.26 organization. The board of directors of the foundation and 95.27 activities of the foundation are under the direction of 95.28 the department of children, families, and learningstate board 95.29 of education. 95.30 Sec. 3. Minnesota Statutes 1996, section 121.615, 95.31 subdivision 3, is amended to read: 95.32 Subd. 3. [BOARD OF DIRECTORS.] The board of directors of 95.33 the school-to-work student organization foundation shall consist 95.34 of: 95.35 (1) chairs or designees from the board of directors of FFA95.36 (formerly Future Farmers of America), Future Leaders of96.1 America/Future Homemakers of America, post-secondary agriculture96.2 students, home economics related occupations, Health Occupations96.3 Student Association, Distributive Education Clubs of America,96.4 Delta Upsilon Chi, Secondary Vocational Industrial Clubs of96.5 America, Post-secondary Vocational Industrial Clubs of America,96.6 Secondary Business Professionals of America, and Post-secondary96.7 Business Professionals of America;96.8 (2) four members from business and industry appointed by96.9 the governor; and96.10 (3) five students representing diverse vocational areas,96.11 three of whom are appointed by the commissioner of the96.12 department of children, families, and learning and two of whom96.13 are appointed by the chancellor of the Minnesota state colleges96.14 and universities with the advice of the executive councils of96.15 each vocational education student organization.96.16 (1) seven members appointed by the board of directors of 96.17 the school-to-work student organizations and chosen so that each 96.18 represents one of the following career areas: agriculture, 96.19 family and consumer sciences, service occupations, health 96.20 occupations, marketing, business, and technical/industrial; 96.21 (2) seven members from business, industry, and labor 96.22 appointed by the governor to staggered terms and chosen so that 96.23 each represents one of the following career areas: agriculture, 96.24 family and consumer sciences, service occupations, health 96.25 occupations, marketing, business, and technical/industrial; 96.26 (3) five students or alumni of school-to-work student 96.27 organizations representing diverse career areas, three from 96.28 secondary student organizations, and two from post-secondary 96.29 student organizations. The students or alumni shall be 96.30 appointed by the criteria and process agreed upon by the 96.31 executive directors of the student-to-work organizations; and 96.32 (4) four members from education appointed by the governor 96.33 to staggered terms and chosen so that each represents one of the 96.34 following groups: school district level administrators, 96.35 secondary school administrators, middle school administrators, 96.36 and post-secondary administrators. 97.1 Executive directors of vocational education student 97.2 organizations are ex officio, nonvoting members of the board. 97.3 Sec. 4. Minnesota Statutes 1996, section 121.615, 97.4 subdivision 5, is amended to read: 97.5 Subd. 5. [POWERS AND DUTIES.] The foundation may: 97.6 (1) identify and plan common goals and priorities for the 97.7 various school-to-work student organizations in Minnesota; 97.8 (2) publish brochures or booklets relating to the purposes 97.9 of the foundation and collect reasonable fees for the 97.10 publications; 97.11 (3) seek and receive public and private money, grants, and 97.12 in-kind services and goods from nonstate sources for the 97.13 purposes of the foundation, without complying with section 7.09, 97.14 subdivision 1; 97.15 (4) contract with consultants on behalf of the 97.16 school-to-work student organizations; and97.17 (5) plan, implement, and expend money for awards and other 97.18 forms of recognition for school-to-work student activities97.19 programs; and 97.20 (6) identifying an appropriate name for the foundation. 97.21 Sec. 5. Minnesota Statutes 1996, section 121.615, 97.22 subdivision 6, is amended to read: 97.23 Subd. 6. [CONTRACTS.] The foundation board of directors97.24 shall review and approve foundation personnel and programming97.25 contractseach contract of the board. Each contract of the 97.26 foundation board shall be subject to the same review and 97.27 approval procedures as a contract of the state board of 97.28 education. 97.29 Sec. 6. Minnesota Statutes 1996, section 121.615, 97.30 subdivision 7, is amended to read: 97.31 Subd. 7. [FOUNDATION STAFF.] The commissioner of the97.32 department of children, families, and learningstate board of 97.33 education shall appoint the executive director of the foundation 97.34 from three candidates nominated and submitted by the foundation 97.35 board of directors and, as necessary, other staff who shall 97.36 perform duties and have responsibilities solely related to the 98.1 foundation. The employees appointed are not state employees 98.2 under chapter 43A, but are covered under section 3.736. The 98.3 employees may participate in the state health and state 98.4 insurance plans for employees in unclassified service. The 98.5 employees shall be supervised by the executive director. 98.6 The commissioner shall appoint from the office of lifework 98.7 development a liaison to the foundation board. 98.8 Sec. 7. Minnesota Statutes 1996, section 121.615, 98.9 subdivision 8, is amended to read: 98.10 Subd. 8. [PUBLIC FUNDING.] The commissioner of the98.11 department of children, families, and learningstate shall 98.12 identify and secure appropriate sources of state and federal98.13 funding from various state agencies, including, but not limited98.14 to, Minnesota state colleges and universities,for the operation98.15 and development ofbasic staffing of the foundation and 98.16 individual student school-to-work student organizations at the 98.17 state level. 98.18 Sec. 8. Minnesota Statutes 1996, section 121.615, 98.19 subdivision 9, is amended to read: 98.20 Subd. 9. [PRIVATE FUNDING.] The foundation shall seek 98.21 private resources to supplement the allocated state and98.22 federalavailable public money. Individuals, businesses, and 98.23 other organizations may contribute to the foundation in any 98.24 manner specified by the board of directors. All money received 98.25 shall be administered by the board of directors. 98.26 Sec. 9. Minnesota Statutes 1996, section 121.615, 98.27 subdivision 10, is amended to read: 98.28 Subd. 10. [REPORT.] The board of directors of the 98.29 foundation shall submit an annual report and assessment to the98.30 office of lifework development andon the progress of its 98.31 activities to the state board of education and to the board of 98.32 trustees of the Minnesota state colleges and universities. The 98.33 annual report shall contain a financial report for the preceding 98.34 year. The foundation shall submit a biennium report to the 98.35 legislature before February 15, in the odd-numbered year. 98.36 Sec. 10. Minnesota Statutes 1996, section 121.703, 99.1 subdivision 3, is amended to read: 99.2 Subd. 3. [DUTIES.] (a) The commission shall: 99.3 (1) develop, with the assistance of the governor, the 99.4 commissioner of children, families, and learning, and affected 99.5 state agencies, a comprehensive state plan to provide services 99.6 under sections 121.701 to 121.710 and federal law; 99.7 (2) actively pursue public and private funding sources for 99.8 services, including funding available under federal law; 99.9 (3) coordinate volunteer service-learning programs within 99.10 the state; 99.11 (4) develop, in cooperation with the workforce development 99.12 council and the commissioner of children, families, and 99.13 learning, volunteer service-learning programs, including 99.14 curriculum, materials, and methods of instruction; 99.15 (5) work collaboratively with the workforce development 99.16 council, the commissioner of children, families, and learning, 99.17 schools, public and private agencies, for-profit and nonprofit 99.18 employers, and labor unions to identify mentoring and 99.19 service-learning opportunities, solicit and recruit participants 99.20 for these programs, and disseminate information on the programs; 99.21 (6) administer the youth works grant program under sections 99.22 121.704 to 121.709, with assistance from the commissioner of 99.23 children, families, and learning and the executive director of 99.24 the higher education services office, including soliciting and 99.25 approving grant applications from eligible organizations, and 99.26 administering individual postservice benefits; 99.27 (7) establish an evaluation plan for programs developed and 99.28 services provided under sections 121.701 to 121.710; 99.29 (8) report to the governor, commissioner of children, 99.30 families, and learning, and legislature; 99.31 (9) provide oversight and support for school, campus, and 99.32 community-based service programs; and 99.33 (10) administer the federal AmeriCorps program. 99.34 (b) Nothing in sections 121.701 to 121.710 precludes an 99.35 organization from independently seeking public or private 99.36 funding to accomplish purposes similar to those described in 100.1 paragraph (a). 100.2 (c) The commissioner of children, families, and learning 100.3 shall consult with commission members before the commissioner 100.4 selects the executive director for the commission, who shall 100.5 serve in the unclassified service. 100.6 Sec. 11. Minnesota Statutes 1996, section 124.193, is 100.7 amended to read: 100.8 124.193 [PROHIBITED AID AND LEVIES.] 100.9 Subdivision 1. [GENERAL PROHIBITION.] Unless specifically 100.10 permitted in the provision authorizing an aid or a levy, 100.11 cooperative units of government defined in section 123.35, 100.12 subdivision 19b, paragraph (d), are prohibited from making a 100.13 property tax levy or qualifying for or receiving any form of 100.14 state aid except that a cooperative unit may apply for and100.15 receive a grant on behalf of its membersas provided in 100.16 subdivisions 2 and 3. 100.17 Subd. 2. [GRANTS.] A cooperative unit may apply for and 100.18 receive a grant on behalf of its members. 100.19 Subd. 3. [ALLOCATION FROM MEMBERS.] By July 15 of each 100.20 year, a school district may, by board resolution, request the 100.21 department to make a payment to a third party. The total sum of 100.22 the payments for the year may not exceed the lesser of (a) the 100.23 district's general education aid for the fiscal year beginning 100.24 July 1, according to sections 124A.036, subdivision 5, and 100.25 124A.23, subdivision 4, or (b) an amount equal to $100 times the 100.26 fund balance pupil units for the fiscal year beginning July 1. 100.27 By July 30 of each year, the school district must report to the 100.28 commissioner the amount allocated. The amount shall be paid to 100.29 the third party according to section 124.195, subdivision 15. 100.30 Amounts paid to third parties under this subdivision shall be 100.31 recognized and reported as revenues and expenditures on the 100.32 school district's books of account under sections 121.904 and 100.33 121.906. 100.34 Sec. 12. Minnesota Statutes 1996, section 124.195, is 100.35 amended by adding a subdivision to read: 100.36 Subd. 15. [PAYMENTS TO THIRD PARTIES.] Notwithstanding 101.1 subdivision 3, 90 percent of the amounts under section 124.193, 101.2 subdivision 3, shall be paid in equal installments on August 30, 101.3 December 30, and March 30, with a ten percent final adjustment 101.4 payment on October 30 of the next fiscal year. 101.5 Sec. 13. Minnesota Statutes 1996, section 124.574, 101.6 subdivision 1, is amended to read: 101.7 Subdivision 1. The purpose of this section is to provide a 101.8 method to fund programs for secondary vocational101.9 educationschool-to-work programs for children with a 101.10 disability. As used in this section, the term "children with a 101.11 disability" shall have the meaning ascribed to it in section 101.12 120.03. 101.13 Sec. 14. Minnesota Statutes 1996, section 124.574, 101.14 subdivision 5, is amended to read: 101.15 Subd. 5. The aid provided pursuant to this section shall 101.16 be paid only for services rendered as designated in subdivision 101.17 2 or for the costs designated in subdivision 3 which are 101.18 incurred in secondary vocational education programs101.19 school-to-work programs for children with a disability which are 101.20 approved by the commissioner of children, families, and learning 101.21 and operated in accordance with rules promulgated by the state 101.22 board. These rules shall be subject to the restrictions 101.23 provided in section 124.573, subdivision 3. The procedure for 101.24 application for approval of these programs shall be as provided 101.25 in section 124.32, subdivisions 7 and 10, and the application 101.26 review process shall be conducted by the vocational education101.27 section of the stateoffice of lifework development in the 101.28 department. 101.29 Sec. 15. Minnesota Statutes 1996, section 124.574, 101.30 subdivision 6, is amended to read: 101.31 Subd. 6. All aid pursuant to this section shall be paid to 101.32 the district or cooperative center providing the services. All 101.33 aid received by a district or center from any source for 101.34 secondary vocational educationschool-to-work programs for 101.35 children with a disability shall be utilized solely for that 101.36 purpose. 102.1 Sec. 16. Minnesota Statutes 1996, section 124.574, 102.2 subdivision 9, is amended to read: 102.3 Subd. 9. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 102.4 INTERMEDIATE DISTRICTS.] For purposes of this section and 102.5 section 124.321, a cooperative center or an intermediate 102.6 district shall allocate its approved expenditures for secondary102.7 vocational programsschool-to-work programs for children with a 102.8 disability among participating school districts. Aid for 102.9 secondary vocational programsschool-to-work programs for 102.10 children with a disability for services provided by a 102.11 cooperative or intermediate district shall be paid to the 102.12 participating school districts. 102.13 Sec. 17. Minnesota Statutes 1996, section 124C.46, 102.14 subdivision 1, is amended to read: 102.15 Subdivision 1. [PROGRAM FOCUS.] The programs and services 102.16 of a center must focus on academic and learning skills, applied 102.17 learning opportunities, trade and vocational skills, work-based 102.18 learning opportunities, work experience, youth service to the 102.19 community, and transition services. Applied learning, 102.20 work-based learning, and service learning may best be developed 102.21 in collaboration with a local education and transitions 102.22 partnership. In addition to offering programs, the center shall 102.23 coordinate the use of other available educational services, 102.24 social services, health services, and post-secondary 102.25 institutions in the community and services area. 102.26 Sec. 18. [126.685] [LIFEWORK DEVELOPMENT PLAN.] 102.27 A school district may require students to develop and 102.28 maintain a record of all students' lifework development 102.29 activities and work toward achieving the profile of learning. 102.30 This record includes, but is not limited to, student's goals, 102.31 skills, abilities, and interests, as well as information on 102.32 service learning experiences, out-of-school learning 102.33 experiences, and career-related experiences, such as job 102.34 shadowing, career mentoring, internships, apprenticeships, 102.35 entrepreneurship, and other work-based learning activities that 102.36 may be used to fulfill the profile of learning. The ongoing 103.1 record assists students in choosing their school-based courses, 103.2 researching and exploring career options, and realizing their 103.3 role as citizens and their goals as lifelong learners. Each 103.4 school year, the student, the student's parent or guardian, 103.5 school and career counselors, and other appropriately trained 103.6 school personnel shall review the student's plan to ensure that 103.7 the plan is updated and reflects the student's changing life 103.8 goals and aspirations. The plan serves as a continuous record 103.9 of future education and training options necessary to achieve 103.10 the student's lifework goal. 103.11 Sec. 19. Minnesota Statutes 1996, section 268.665, 103.12 subdivision 2, is amended to read: 103.13 Subd. 2. [MEMBERSHIP.] The governor's workforce 103.14 development council is composed of 3233 members appointed by 103.15 the governor. The members may be removed pursuant to section 103.16 15.059. In selecting the representatives of the council, the 103.17 governor shall ensure that 50 percent of the members come from 103.18 nominations provided by local workforce councils. Local 103.19 education representatives shall come from nominations provided 103.20 by local education to employment partnerships. The 32 members 103.21 shall represent the following sectors: 103.22 (a) State agencies: the following individuals shall serve 103.23 on the council: 103.24 (1) commissioner of the Minnesota department of economic 103.25 security; 103.26 (2) commissioner of the Minnesota department of children, 103.27 families, and learning; 103.28 (3) commissioner of the Minnesota department of human 103.29 services; and 103.30 (4) commissioner of the Minnesota department of trade and 103.31 economic development. 103.32 (b) Business and industry: six individuals shall represent 103.33 the business and industry sectors of Minnesota. 103.34 (c) Organized labor: six individuals shall represent labor 103.35 organizations of Minnesota. 103.36 (d) Community-based organizations: four individuals shall 104.1 represent community-based organizations of Minnesota. 104.2 Community-based organizations are defined by the Job Training 104.3 Partnership Act as private nonprofit organizations that are 104.4 representative of communities or significant segments of 104.5 communities and that provide job training services, agencies 104.6 serving youth, agencies serving individuals with disabilities, 104.7 agencies serving displaced homemakers, union-related 104.8 organizations, and employer-related nonprofit organizations and 104.9 organizations serving nonreservation Indians and tribal 104.10 governments. 104.11 (e) Education: fivesix individuals shall represent the 104.12 education sector of Minnesota as follows: 104.13 (1) one individual shall represent local public secondary 104.14 education; 104.15 (2) one individual shall have expertise in design and 104.16 implementation of school-based service-learning; 104.17 (3) one individual shall represent post-secondary 104.18 education; 104.19 (4) one individual shall represent secondary/post-secondary 104.20 vocational institutions; and104.21 (5) the chancellor of the board of trustees of the 104.22 Minnesota state colleges and universities; and 104.23 (6) one individual shall have expertise in agricultural 104.24 education. 104.25 (f) Other: two individuals shall represent other 104.26 constituencies including: 104.27 (1) units of local government; and 104.28 (2) applicable state or local programs. 104.29 The speaker and the minority leader of the house of 104.30 representatives shall each appoint a representative to serve as 104.31 an ex officio member of the council. The majority and minority 104.32 leaders of the senate shall each appoint a senator to serve as 104.33 an ex officio member of the council. After January 1, 1997, the 104.34 Minnesota director of the corporation for national service shall 104.35 also serve as an ex officio member. 104.36 (g) Appointment: each member shall be appointed for a term 105.1 of three years from the first day of January or July immediately 105.2 following their appointment. Elected officials shall forfeit 105.3 their appointment if they cease to serve in elected office. 105.4 (h) Members of the council are compensated as provided in 105.5 section 15.059, subdivision 3. 105.6 Sec. 20. Laws 1993, chapter 146, article 5, section 20, is 105.7 amended to read: 105.8 Sec. 20. [REPEALER.] 105.9 Sections 6 to 12 are repealed June 30, 19982001. 105.10 Sec. 21. [DAWSON-BOYD ADULT FARM MANAGEMENT LEVY.] 105.11 In addition to other levies, independent school district 105.12 No. 378, Dawson-Boyd, may levy an amount up to $132,000 for the 105.13 unreimbursed costs of an adult farm management program. This 105.14 amount may be levied over a period of three years. 105.15 Sec. 22. [SOUTHWEST STAR CONCEPT SCHOOL.] 105.16 Subdivision 1. [PILOT PROJECT.] The Southwest Star Concept 105.17 School pilot project is created. The purpose of the project is 105.18 to serve as a model for the state of Minnesota demonstrating the 105.19 capability of a small school district to provide a curriculum 105.20 focusing on applied learning and teaching methodology allowing 105.21 students to reach high levels of performance on the state 105.22 graduation standards. 105.23 Subd. 2. [ACTIVITIES.] The school board of independent 105.24 school district No. 330, Heron Lake-Okabena, must develop the 105.25 Southwest Star Concept School, including its academic framework, 105.26 goals, and delivery system in consultation with community 105.27 members, teachers, and parents. 105.28 Subd. 3. [REPORT.] Independent school district No. 330, 105.29 Heron Lake-Okabena, shall conduct an ongoing study of the pilot 105.30 project. The ongoing study shall evaluate and compare outcomes 105.31 and student performance to other similarly situated school 105.32 districts and measure changes in outcomes and student 105.33 performance within the school over time. The school district 105.34 shall annually report its results to the legislature by February 105.35 15 of each year. A final report must be issued by February 15, 105.36 2002. 106.1 Sec. 23. [MODEL LIFEWORK LEARNING SITES.] 106.2 Subdivision 1. [PURPOSE.] Lifework learning sites are 106.3 established to develop and model practices of lifework learning. 106.4 Lifework learning includes vocational education, preparation for 106.5 work, family and community responsibilities, and lifelong 106.6 learning. 106.7 Subd. 2. [DEFINITION; ELIGIBILITY.] A "lifework learning 106.8 site" means a site that focuses on lifework learning and models 106.9 school-to-work practices. A lifework learning site may include, 106.10 but is not limited to, a site that is: 106.11 (1) a public school, including a charter school, an 106.12 alternative program, or a post-secondary institution; 106.13 (2) located in or connected to a school; or 106.14 (3) colocated with an education, commercial, government, or 106.15 community enterprise. 106.16 Subd. 3. [DESIGNATION.] To be designated a "lifework 106.17 learning site," a site must: 106.18 (1) develop, implement, and model practices and techniques 106.19 consistent with lifework learning and school-to-work performance 106.20 indicators; 106.21 (2) train school and nonschool staff on lifework learning 106.22 and school-to-work practices and methodologies; 106.23 (3) provide real world, school-based, work-based, and 106.24 service-based learning experiences, integrated with academic 106.25 studies that meet Minnesota's graduation standards; 106.26 (4) assess and evaluate lifework learning and 106.27 school-to-work practices; and 106.28 (5) disseminate materials and information about lifework 106.29 learning site activities using the state's information 106.30 clearinghouse on lifework learning and school-to-work. 106.31 Subd. 4. [APPLICATION.] (a) A lifework learning site 106.32 applicant must be a partner in a local/regional school-to-work 106.33 partnership. To be designated a lifework learning site and 106.34 eligible for a grant, the applicant must submit an application 106.35 to the governor's workforce council in the form and manner the 106.36 council prescribes. 107.1 (b) With the advice and recommendation of the vocational 107.2 high school planning committee appointed under Laws 1995, First 107.3 Special Session chapter 3, article 3, section 12, the council 107.4 must select lifework learning sites that: 107.5 (1) are committed to lifework learning and school-to-work 107.6 practices and methodologies; 107.7 (2) are capable and willing to work with the local/regional 107.8 school-to-work partnership, and make resources available for the 107.9 ongoing function of the site; 107.10 (3) implement reaching and learning strategies that support 107.11 the graduation standards and innovative teaching and learning 107.12 practices; 107.13 (4) develop and provide ongoing training for school and 107.14 nonschool partners; 107.15 (5) use existing education, commercial, government, or 107.16 community facilities; 107.17 (6) demonstrate how the lifework learning site will serve 107.18 all kindergarten through grade 12 students within the community; 107.19 and 107.20 (7) demonstrate a long-term financial plan to sustain the 107.21 lifework learning site. 107.22 Subd. 5. [START-UP GRANT AWARDS,] In order for the site to 107.23 receive a start-up grant, the site must match the grant amount 107.24 with an equal amount of funding or in-kind contributions from 107.25 federal, local, or private sources. The grant award shall not 107.26 exceed $200,000 for a site. The site shall use the grant for 107.27 the start-up costs of the lifework learning site. 107.28 Subd. 6. [REPORT.] A grant recipient shall report annually 107.29 for three years to the commissioner of children, families, and 107.30 learning on implementation of the lifework learning site and the 107.31 site's ability to deliver model school-to-work instruction and 107.32 learning. 107.33 Sec. 24. [THIRD-PARTY PAYMENTS.] 107.34 For fiscal year 1998 only, the department to make a 107.35 third-party payment under section 12 at a school board's request 107.36 if that request is made within 60 days of the effective date of 108.1 this section. 108.2 Sec. 25. [APPROPRIATIONS.] 108.3 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 108.4 LEARNING.] The sums indicated in this section are appropriated 108.5 from the general fund to the department of children, families, 108.6 and learning for the fiscal years designated. 108.7 Subd. 2. [SECONDARY VOCATIONAL EDUCATION AID.] For 108.8 secondary vocational education aid according to Minnesota 108.9 Statutes, section 124.573: 108.10 $11,617,000 ..... 1998 108.11 $11,596,000 ..... 1999 108.12 The 1998 appropriation includes $1,180,000 for 1997 and 108.13 $10,437,000 for 1998. 108.14 The 1999 appropriation includes $1,159,000 for 1998 and 108.15 $10,437,000 for 1999. 108.16 Subd. 3. [YOUTHWORKS PROGRAM.] For funding youthworks 108.17 programs according to Minnesota Statutes, sections 121.701 to 108.18 121.710: 108.19 $1,838,000 ..... 1998 108.20 $1,838,000 ..... 1999 108.21 The commissioner may allocate up to $50,000 of the 108.22 appropriation for the cost of administering the program. 108.23 A grantee organization may provide health and child care 108.24 coverage to the dependents of each participant enrolled in a 108.25 full-time youth works program to the extent such coverage is not 108.26 otherwise available. 108.27 Any balance in the first year does not cancel but is 108.28 available in the second year. 108.29 Subd. 4. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 108.30 GRANTS.] For education and employment transitions program: 108.31 $4,750,000 ..... 1998 108.32 $4,750,000 ..... 1999 108.33 $500,000 each year is for development of MnCEPs, an 108.34 Internet-based education and employment information system. 108.35 These are one-time funds. 108.36 $1,225,000 in fiscal year 1998 and $1,250,000 in fiscal 109.1 year 1999 is for a rebate program for qualifying employers who 109.2 employ less than 250 employees, who offer youth internships to 109.3 educators. An employer may apply for a rebate of up to $500 for 109.4 each paid youth internship and each educator internship, and up 109.5 to $3,000 for each paid youth apprenticeship. The commissioner 109.6 shall determine the application and payment process. 109.7 $450,000 each year is for youth apprenticeship program 109.8 grants. 109.9 $225,000 each year is for youth entrepreneurship grants 109.10 under Minnesota Statutes, section 121.72. Of this amount, 109.11 $25,000 each year is for the high school student 109.12 entrepreneurship program in independent school district No. 175, 109.13 Westbrook. This appropriation shall be used for expenses, 109.14 including, but not limited to, salaries, travel, seminars, 109.15 equipment purchases, contractual expenses, and other expenses 109.16 related to the student-run business. 109.17 $125,000 each year is for youth employer grants under Laws 109.18 1995, First Special Session chapter 3, article 4, section 28. 109.19 $150,000 each year is for parent and community awareness 109.20 training. 109.21 $825,000 each year is for the development of career 109.22 assessment benchmarks, lifework portfolios, industry skill 109.23 standards, curriculum development, career academies, and career 109.24 programs for elementary, middle school, and at-risk learners. 109.25 $400,000 each year is for state level activities, including 109.26 the governor's workforce council. 109.27 $275,000 each year is for development of occupational 109.28 information. 109.29 $300,000 each year is for a grant to be made available to a 109.30 county government that has established school-to-work projects 109.31 with schools located in a city of the first class. These grants 109.32 must be used to expand the number of at-risk students 109.33 participating in these school-to-work projects. Priority must 109.34 be given to projects that demonstrate collaboration between 109.35 private employers, collective bargaining representatives, school 109.36 officials, and the county government and which prepare at-risk 110.1 students for long-term employment with private sector employers 110.2 paying a minimum of 150 percent of the federal poverty level for 110.3 a family of four and with the majority of their employees in 110.4 collective bargaining units. 110.5 $250,000 each year is for agricultural school-to-work 110.6 grants. 110.7 $25,000 is for a grant to the Minnesota Historical Society 110.8 for money canceled in fiscal year 1997. 110.9 Subd. 5. [MINNESOTA SCHOOL-TO-WORK STUDENT ORGANIZATION 110.10 FOUNDATION.] For the Minnesota school-to-work student 110.11 organization foundation under Minnesota Statutes, section 110.12 121.615: 110.13 $375,000 ..... 1998 110.14 $375,000 ..... 1999 110.15 This appropriation is available until June 30, 1999. 110.16 Subd. 6. [SOUTHWEST STAR CONCEPT SCHOOL.] For a grant to 110.17 independent school district No. 330, Heron Lake-Okabena, to 110.18 establish the Southwest Star Concept School: 110.19 $193,000 ..... 1998 110.20 This appropriation may be used for equipment, activities 110.21 beyond the classroom walls, professional planning assistance, 110.22 monitoring, evaluating, and reporting activities related to the 110.23 case study prepared in section 22. 110.24 Subd. 7. [WORKSTUDY STUDENT COMPENSATION.] For enabling 110.25 school districts to pay the employer's share of work study 110.26 students compensation under Minnesota Statutes, section 110.27 136A.233, subdivision 3: 110.28 $50,000 ..... 1998 110.29 $50,000 ..... 1999 110.30 Money shall be available to districts upon request until 110.31 the appropriation is exhausted. The commissioner may establish 110.32 an application procedure for allocating the money to districts. 110.33 Subd. 8. [LIFEWORK LEARNING SITES.] For lifework learning 110.34 sites according to section 23: 110.35 $500,000 ..... 1998 110.36 $500,000 ..... 1999 111.1 Of this amount, $150,000 shall be awarded for a start-up 111.2 grant to the Mid-State education district No. 6979 for a job 111.3 shadowing program and internships at Camp Ripley. 111.4 Any balance remaining in the first year does not cancel but 111.5 is available in the second year. 111.6 Sec. 26. [EFFECTIVE DATE.] 111.7 (a) Sections 11 and 12 are effective for revenue for fiscal 111.8 years 1998 and later. 111.9 (b) If this act is enacted on or after July 1, 1997, all 111.10 sections in this article except for those sections listed in 111.11 paragraph (a) are effective the day following final enactment. 111.12 ARTICLE 4 111.13 EDUCATION ORGANIZATION, COOPERATION, AND FACILITIES 111.14 Section 1. Minnesota Statutes 1996, section 120.0621, 111.15 subdivision 5a, is amended to read: 111.16 Subd. 5a. [TUITION PAYMENTS.] In each odd-numbered year, 111.17 before March 1, the state board of educationcommissioner shall 111.18 agree to rates of tuition for Minnesota elementary and secondary 111.19 pupils attending in other states for the next two fiscal 111.20 years when the other state agrees to negotiate tuition rates. 111.21 The boardcommissioner shall negotiate equal, reciprocal rates 111.22 with the designated authority in each state for pupils who 111.23 reside in an adjoining state and enroll in a Minnesota school 111.24 district. The rates must be at least equal to the tuition 111.25 specified in section 120.08, subdivision 1. If the other state 111.26 does not agree to negotiate a general tuition rate, a Minnesota 111.27 school district may negotiate a tuition rate with the school 111.28 district in the other state that sends a pupil to or receives a 111.29 pupil from the Minnesota school district. The tuition rate for 111.30 a pupil with a disability must be equal to the actual cost of 111.31 instruction and services provided. The resident district of a 111.32 Minnesota pupil attending in another state under this section 111.33 must pay the amount of tuition agreed upon in this section to 111.34 the district of attendance, prorated on the basis of the 111.35 proportion of the school year attended. 111.36 Sec. 2. Minnesota Statutes 1996, section 120.0621, 112.1 subdivision 6, is amended to read: 112.2 Subd. 6. [EFFECTIVE IF RECIPROCAL.] This section is 112.3 effective with respect to South Dakota upon enactment of 112.4 provisions by South Dakota that the commissioner determines are 112.5 essentially similar to the provisions for Minnesota pupils in 112.6 this section. After July 1, 1993, this section is effective 112.7 with respect to any other bordering state upon enactment of 112.8 provisions by the bordering state that the commissioner 112.9 determines are essentially similar to the provisions for 112.10 Minnesota pupils in this section. 112.11 Sec. 3. Minnesota Statutes 1996, section 120.0621, is 112.12 amended by adding a subdivision to read: 112.13 Subd. 7. [APPEAL TO THE COMMISSIONER.] If a Minnesota 112.14 school district cannot agree with an adjoining state on a 112.15 tuition rate for a Minnesota student attending school in that 112.16 state and that state has met the requirements in subdivision 6, 112.17 then the student's parent or guardian may request that the 112.18 commissioner agree on a tuition rate for the student. The 112.19 Minnesota school district must pay the amount of tuition the 112.20 commissioner agrees upon. 112.21 Sec. 4. Minnesota Statutes 1996, section 121.15, is 112.22 amended by adding a subdivision to read: 112.23 Subd. 1a. [INDOOR AIR QUALITY RESOURCES; COMMISSIONER'S 112.24 ROLE.] As part of the consultation under subdivision 1, the 112.25 commissioner shall provide each school district with information 112.26 concerning indoor air quality. 112.27 Sec. 5. Minnesota Statutes 1996, section 121.15, 112.28 subdivision 6, is amended to read: 112.29 Subd. 6. [REVIEW AND COMMENT.] A school district, a 112.30 special education cooperative, or a cooperative unit of 112.31 government, as defined in section 123.35, subdivision 19b, 112.32 paragraph (d), must not initiate an installment contract for 112.33 purchase or a lease agreement, hold a referendum for bonds, nor 112.34 solicit bids for new construction, expansion, or remodeling of 112.35 an educational facility that requires an expenditure in excess 112.36 of $400,000 per school site prior to review and comment by the 113.1 commissioner. A school board shall not separate portions of a 113.2 single project into components to avoid the requirements of this 113.3 subdivision. 113.4 Sec. 6. Minnesota Statutes 1996, section 121.15, 113.5 subdivision 7, is amended to read: 113.6 Subd. 7. [INFORMATION REQUIRED.] A school board proposing 113.7 to construct a facility described in subdivision 6 shall submit 113.8 to the commissioner a proposal containing information including 113.9 at least the following: 113.10 (a) the geographic area proposed to be served, whether 113.11 within or outside the boundaries of the school district; 113.12 (b) the people proposed to be served, including census 113.13 findings and projections for the next ten years of the number of 113.14 preschool and school-aged people in the area; 113.15 (c) the reasonably anticipated need for the facility or 113.16 service to be provided; 113.17 (d) a description of the construction in reasonable detail, 113.18 including: the expenditures contemplated; the estimated annual 113.19 operating cost, including the anticipated salary and number of 113.20 new staff necessitated by the proposal; and an evaluation of the 113.21 energy efficiency and effectiveness of the construction, 113.22 including estimated annual energy costs; and a description of 113.23 the telephone capabilities of the facility and its classrooms; 113.24 (e) a description of existing facilities within the area to 113.25 be served and within school districts adjacent to the area to be 113.26 served; the extent to which existing facilities or services are 113.27 used; the extent to which alternate space is available, 113.28 including other school districts, post-secondary institutions, 113.29 other public or private buildings, or other noneducation 113.30 community resources; and the anticipated effect that the 113.31 facility will have on existing facilities and services; 113.32 (f) the anticipated benefit of the facility to the area; 113.33 (g) if known, the relationship of the proposed construction 113.34 to any priorities that have been established for the area to be 113.35 served; 113.36 (h) the availability and manner of financing the facility 114.1 and the estimated date to begin and complete the facility; 114.2 (i) desegregation requirements that cannot be met by any 114.3 other reasonable means; 114.4 (j) the relationship of the proposed facility to the 114.5 cooperative integrated learning needs of the area; and114.6 (k) the effects of the proposed facility on the district's 114.7 operating budget; 114.8 (l) the level of collaboration at the facility between the 114.9 district and other governmental or nonprofit entities; and 114.10 (m) the extent to which the district has minimized 114.11 administrative overhead among facilities. 114.12 Sec. 7. Minnesota Statutes 1996, section 121.15, is 114.13 amended by adding a subdivision to read: 114.14 Subd. 7a. [INDOOR AIR QUALITY.] A school board seeking a 114.15 review and comment under this section must submit information 114.16 demonstrating to the commissioner's satisfaction that: 114.17 (1) indoor air quality issues have been considered; and 114.18 (2) the architects and engineers designing the facility 114.19 will have professional liability insurance. 114.20 Sec. 8. [121.1501] [SCHOOL FACILITY COMMISSIONING.] 114.21 Subdivision 1. [APPLICATION.] This section applies to the 114.22 installation or retrofitting of heating, ventilation, and air 114.23 conditioning systems for which review and comment of the project 114.24 under section 121.15 has been requested after the effective date 114.25 of this section. 114.26 Subd. 2. [SYSTEM INSPECTOR.] For purposes of this section, 114.27 system inspector means: 114.28 (1) a Minnesota-licensed architect or engineer; or 114.29 (2) properly qualified testing and balancing agency or 114.30 individual. 114.31 Subd. 3. [CERTIFICATION.] Prior to occupying or 114.32 reoccupying a school facility affected by this section, a school 114.33 board or its designee shall submit a document prepared by a 114.34 system inspector to the building official or to the 114.35 commissioner, verifying that the facility's heating, 114.36 ventilation, and air conditioning system has been installed and 115.1 operates according to design specifications. 115.2 Subd. 4. [OCCUPANCY.] If the document submitted by the 115.3 school board to the local building official or the commissioner 115.4 does not demonstrate to that official's satisfaction that the 115.5 heating, ventilation, and air conditioning system has been 115.6 installed correctly or that the system is not operating at a 115.7 level to meet design specifications, the official or 115.8 commissioner may allow up to one year of occupancy while the 115.9 heating, ventilation, and air conditioning system is improved to 115.10 a level that is considered satisfactory by the system inspector. 115.11 Sec. 9. Minnesota Statutes 1996, section 124.2445, is 115.12 amended to read: 115.13 124.2445 [PURCHASE OF CERTAIN EQUIPMENT.] 115.14 The board of a school district may issue general obligation 115.15 certificates of indebtedness or capital notes subject to the 115.16 school district debt limits to purchase: (a) vehicles, 115.17 computers, telephone systems, cable equipment, photocopy and 115.18 office equipment, technological equipment for instruction, and 115.19 other capital equipment having an expected useful life at least 115.20 as long as the terms of the certificates or notes; and (b) 115.21 computer hardware and software, without regard to its expected 115.22 useful life, whether bundled with machinery or equipment or 115.23 unbundled, together with application development services and 115.24 training related to the use of the computer. The certificates 115.25 or notes must be payable in not more than five years and must be 115.26 issued on the terms and in the manner determined by the board. 115.27 The certificates or notes may be issued by resolution and 115.28 without the requirement for an election. The certificates or 115.29 notes are general obligation bonds for purposes of section 115.30 124.755. A tax levy must be made for the payment of the 115.31 principal and interest on the certificates or notes, in 115.32 accordance with section 475.61, as in the case of bonds. The 115.33 sum of the tax levies under this section and section 124.2455 115.34 for each year must not exceed the amount of the district's total 115.35 operating capital revenue for the year the initial debt service 115.36 levies are certified. The district's general education levy for 116.1 each year must be reduced by the sum of (1) the amount of the 116.2 tax levies for debt service certified for each year for payment 116.3 of the principal and interest on the certificates or notes as 116.4 required by section 475.61 ., and (2) any excess amount in the 116.5 debt redemption fund used to retire certificates or notes issued 116.6 after April 1, 1997, other than amounts used to pay capitalized 116.7 interest. A district using an excess amount in the debt 116.8 redemption fund to retire the certificates or notes shall report 116.9 the amount used for this purpose to the commissioner by July 15 116.10 of the following fiscal year. A district having an outstanding 116.11 capital loan under section 124.431 or an outstanding debt 116.12 service loan under section 124.42 must not use an excess amount 116.13 in the debt redemption fund to retire the certificates or notes. 116.14 Sec. 10. Minnesota Statutes 1996, section 124.2455, is 116.15 amended to read: 116.16 124.2455 [BONDS FOR CERTAIN CAPITAL FACILITIES.] 116.17 (a) In addition to other bonding authority, with approval 116.18 of the commissioner, a school district may issue general 116.19 obligation bonds for certain capital projects under this 116.20 section. The bonds must be used only to make capital 116.21 improvements including: 116.22 (1) under section 124A.22, subdivision 11, total operating 116.23 capital revenue uses specified in clauses (4), (6), (7), (8), 116.24 (9), and (10); 116.25 (2) the cost of energy modifications; 116.26 (3) improving handicap accessibility to school buildings; 116.27 and 116.28 (4) bringing school buildings into compliance with life and 116.29 safety codes and fire codes. 116.30 (b) Before a district issues bonds under this subdivision, 116.31 it must publish notice of the intended projects, the amount of 116.32 the bond issue, and the total amount of district indebtedness. 116.33 (c) A bond issue tentatively authorized by the board under 116.34 this subdivision becomes finally authorized unless a petition 116.35 signed by more than 15 percent of the registered voters of the 116.36 school district is filed with the school board within 30 days of 117.1 the board's adoption of a resolution stating the board's 117.2 intention to issue bonds. The percentage is to be determined 117.3 with reference to the number of registered voters in the school 117.4 district on the last day before the petition is filed with the 117.5 school board. The petition must call for a referendum on the 117.6 question of whether to issue the bonds for the projects under 117.7 this section. The approval of 50 percent plus one of those 117.8 voting on the question is required to pass a referendum 117.9 authorized by this section. 117.10 (d) The bonds must be paid off within ten years of 117.11 issuance. The bonds must be issued in compliance with chapter 117.12 475, except as otherwise provided in this section. A tax levy 117.13 must be made for the payment of principal and interest on the 117.14 bonds in accordance with section 475.61. The sum of the tax 117.15 levies under this section and section 124.2455 for each year 117.16 must not exceed the amount of the district's total operating 117.17 capital revenue for the year the initial debt service levies are 117.18 certified. The district's general education levy for each year 117.19 must be reduced by the sum of (1) the amount of the tax levies 117.20 for debt service certified for each year for payment of the 117.21 principal and interest on the bonds ., and (2) any excess amount 117.22 in the debt redemption fund used to retire bonds issued after 117.23 April 1, 1997, other than amounts used to pay capitalized 117.24 interest. A district using an excess amount in the debt 117.25 redemption fund to retire the bonds shall report the amount used 117.26 for this purpose to the commissioner by July 15 of the following 117.27 fiscal year. A district having an outstanding capital loan 117.28 under section 124.431 or an outstanding debt service loan under 117.29 section 124.42 must not use an excess amount in the debt 117.30 redemption fund to retire the bonds. 117.31 (e) Notwithstanding paragraph (d), bonds issued by a 117.32 district within the first five years following voter approval of 117.33 a combination according to section 122.243, subdivision 2, must 117.34 be paid off within 20 years of issuance. All the other 117.35 provisions and limitation of paragraph (d) apply. 117.36 Sec. 11. Minnesota Statutes 1996, section 124.2727, 118.1 subdivision 6d, is amended to read: 118.2 Subd. 6d. [REVENUE USES.] (a) A district must place its 118.3 district cooperation revenue in a reserved account and may only 118.4 use the revenue to purchase goods and services from entities 118.5 formed for cooperative purposes or to otherwise provide 118.6 educational services in a cooperative manner. 118.7 (b) A district that was a member of an intermediate school 118.8 district organized pursuant to chapter 136D on July 1, 1994July 118.9 1, 1996, must place its district cooperation revenue in a 118.10 reserved account and must allocate a portion of the reserved 118.11 revenue for instructional services from entities formed for 118.12 cooperative services for special education programs and 118.13 secondary vocational programs. The allocated amount is equal to 118.14 the levy made according to section 124.2727, subdivision 6, for 118.15 taxes payable in 1994 divided by the actual pupil units in the 118.16 intermediate school district for fiscal year 1995 times the 118.17 number of actual pupil units in the school district in 1995. 118.18 The district must use 5/11 of the revenue for special education 118.19 and 6/11 of the revenue for secondary vocational education. The 118.20 district must demonstrate that the revenue is being used to 118.21 provide the full range of special education and secondary 118.22 vocational programs and services available to each child served 118.23 by the intermediate. The secondary vocational programs and 118.24 service must meet the requirements established in an 118.25 articulation agreement developed between the state board of 118.26 education and the board of trustees of the Minnesota state 118.27 colleges and universities. 118.28 (c) A district that was not a member of an intermediate 118.29 district organized under chapter 136D on July 1, 1994, must 118.30 spend at least $9 per pupil unit of its district cooperation 118.31 revenue on secondary vocational programs. 118.32 Sec. 12. Minnesota Statutes 1996, section 124.42, 118.33 subdivision 4, is amended to read: 118.34 Subd. 4. Each district receiving a debt service loan shall 118.35 levy for debt service in that year and each year thereafter, 118.36 until all its debts to the fund are paid, (a) the amount of its 119.1 maximum effort debt service levy, or (b) the amount of its 119.2 required debt service levy less the amount of any debt service 119.3 loan in that year, whichever is greater. Whenever the maximum119.4 effort debt service levy is greater the district shall remit to119.5 the commissioner, within ten days after its receipt of the last119.6 regular tax distribution in the year in which it is collected,119.7 that portion of the maximum effort debt service tax collections,119.8 including penalties and interest, which exceeds the required119.9 debt service levy.The district shall remit payments to the 119.10 commissioner according to section 124.45. On or before 119.11 September 130 in each year the commissioner shall notify the 119.12 county auditor of each county containing taxable property 119.13 situated within the school district of the amount of the maximum 119.14 effort debt service levy of the district for that year, and said 119.15 county auditor or auditors shall extend upon the tax rolls an ad 119.16 valorem tax upon all taxable property within the district in the 119.17 aggregate amount so certified. 119.18 Sec. 13. Minnesota Statutes 1996, section 124.431, 119.19 subdivision 2, is amended to read: 119.20 Subd. 2. [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 119.21 school district or a joint powers district that intends to apply 119.22 for a capital loan must submit a proposal to the commissioner 119.23 for review and comment according to section 121.15 on or before 119.24 July 1 of an odd-numbered year. The commissioner must prepare a 119.25 review and comment on the proposed facility, regardless of the 119.26 amount of the capital expenditure required to construct the 119.27 facility. In addition to the information provided under section 119.28 121.15, subdivision 7, the commissioner shall require that 119.29 predesign packages comparable to those required under section 119.30 16B.335 be prepared by the applicant school district. The 119.31 predesign packages must be sufficient to define the scope, cost, 119.32 and schedule of the project and must demonstrate that the 119.33 project has been analyzed according to appropriate space needs 119.34 standards and also consider the following criteria in 119.35 determining whether to make a positive review and comment. 119.36 (a) To grant a positive review and comment the commissioner 120.1 must determine that all of the following conditions are met: 120.2 (1) the facilities are needed for pupils for whom no 120.3 adequate facilities exist or will exist; 120.4 (2) the district will serve, on average, at least 80 pupils 120.5 per grade or is eligible for elementary or secondary sparsity 120.6 revenue; 120.7 (3) no form of cooperation with another district would 120.8 provide the necessary facilities; 120.9 (4) the facilities are comparable in size and quality to 120.10 facilities recently constructed in other districts that have 120.11 similar enrollments; 120.12 (5) the facilities are comparable in size and quality to 120.13 facilities recently constructed in other districts that are 120.14 financed without a capital loan; 120.15 (6) the district is projected to maintain or increase its 120.16 average daily membership over the next five years or is eligible 120.17 for elementary or secondary sparsity revenue; 120.18 (7) the current facility poses a threat to the life, 120.19 health, and safety of pupils, and cannot reasonably be brought 120.20 into compliance with fire, health, or life safety codes; 120.21 (8) the district has made a good faith effort, as evidenced 120.22 by its maintenance expenditures, to adequately maintain the 120.23 existing facility during the previous ten years and to comply 120.24 with fire, health, and life safety codes and state and federal 120.25 requirements for handicapped accessibility; 120.26 (9) the district has made a good faith effort to encourage 120.27 integration of social service programs within the new facility; 120.28 and 120.29 (10) evaluations by school boards of adjacent districts 120.30 have been received. 120.31 (b) The commissioner may grant a negative review and 120.32 comment if: 120.33 (1) the state demographer has examined the population of 120.34 the communities to be served by the facility and determined that 120.35 the communities have not grown during the previous five years; 120.36 (2) the state demographer determines that the economic and 121.1 population bases of the communities to be served by the facility 121.2 are not likely to grow or to remain at a level sufficient, 121.3 during the next ten years, to ensure use of the entire facility; 121.4 (3) the need for facilities could be met within the 121.5 district or adjacent districts at a comparable cost by leasing, 121.6 repairing, remodeling, or sharing existing facilities or by 121.7 using temporary facilities; 121.8 (4) the district plans do not include cooperation and 121.9 collaboration with health and human services agencies and other 121.10 political subdivisions; or 121.11 (5) if the application is for new construction, an existing 121.12 facility that would meet the district's needs could be purchased 121.13 at a comparable cost from any other source within the area. 121.14 Sec. 14. Minnesota Statutes 1996, section 124.431, 121.15 subdivision 11, is amended to read: 121.16 Subd. 11. [CONTRACT.] (a) Each capital loan must be 121.17 evidenced by a contract between the school district and the 121.18 state acting through the commissioner. The contract must 121.19 obligate the state to reimburse the district, from the maximum 121.20 effort school loan fund, for eligible capital expenses for 121.21 construction of the facility for which the loan is granted, an 121.22 amount computed as provided in subdivision 8. The commissioner 121.23 must receive from the school district a certified resolution of 121.24 the school board estimating the costs of construction and 121.25 reciting that contracts for construction of the facilities for 121.26 which the loan is granted have been awarded and that bonds of 121.27 the district have been issued and sold in the amount necessary 121.28 to pay all estimated costs of construction in excess of the 121.29 amount of the loan. The contract must obligate the district to 121.30 repay the loan out of the excesses of its maximum effort debt 121.31 service levy over its required debt service levy, including 121.32 interest at a rate equal to the weighted average annual rate 121.33 payable on Minnesota state school loan bonds issued for the 121.34 project and disbursed to the districts on a reimbursement basis, 121.35 but in no event less than 3-1/2 percent per year on the 121.36 principal amount from time to time unpaid. 122.1 (b) The district shall each year, as long as it is indebted 122.2 to the state, levy for debt service (a)(i) the amount of its 122.3 maximum effort debt service levy or (b)(ii) the amount of its 122.4 required debt service levy, whichever is greater, except as the 122.5 required debt service levy may be reduced by a loan under 122.6 section 124.42. On November 20 of each year each district122.7 having an outstanding capital loan shall compute the excess122.8 amount in the debt redemption fund. The commissioner shall122.9 prescribe the form and calculation to be used in computing the122.10 excess amount. A completed copy of this form shall be sent to122.11 the commissioner before December 1 of each year. The122.12 commissioner may recompute the excess amount and shall promptly122.13 notify the district of the recomputed amount. On December 15 of122.14 each year, the district shall remit to the commissioner an122.15 amount equal to the excess amount in the debt redemption fund.122.16 When the maximum effort debt service levy is greater, the122.17 district shall remit to the commissioner within ten days after122.18 its receipt of the last regular tax distribution in each year,122.19 that part of the debt service tax collections, including122.20 penalties and interest that exceeded the required debt service122.21 levy.The district shall remit payments to the commissioner 122.22 according to section 124.45. 122.23 (c) The commissioner shall supervise the collection of 122.24 outstanding accounts due the fund and may, by notice to the 122.25 proper county auditor, require the maximum levy to be made as 122.26 required in this subdivision. Interest on capital loans must be 122.27 paid on December 15 of the year after the year the loan is 122.28 granted and annually in later years. On or before September 1122.29 30 in each year the commissioner shall notify the county auditor 122.30 of each county containing taxable property situated within the 122.31 school district of the amount of the maximum effort debt service 122.32 levy of the district for that year. The county auditor or 122.33 auditors shall extend upon the tax rolls an ad valorem tax upon 122.34 all taxable property within the district in the aggregate amount 122.35 so certified. 122.36 Sec. 15. Minnesota Statutes 1996, section 124.45, is 123.1 amended to read: 123.2 124.45 [PAYMENT AND APPLICATIONS OF PAYMENT.] 123.3 Subdivision 1. [PAYMENT.] (a) On November 20 of each year, 123.4 each district having an outstanding capital loan or debt service 123.5 loan shall compute the excess amount in the debt redemption 123.6 fund. The commissioner shall prescribe the form and calculation 123.7 to be used in computing the excess amount. A completed copy of 123.8 this form shall be sent to the commissioner before December 1 of 123.9 each year. The commissioner may recompute the excess amount and 123.10 shall promptly notify the district of the recomputed amount. 123.11 (b) On December 15 of each year, the district shall remit 123.12 to the commissioner an amount equal to the greater of: 123.13 (i) the excess amount in the debt redemption fund; or 123.14 (ii) the amount by which the maximum effort debt service 123.15 levy exceeds the required debt service levy for that calendar 123.16 year. 123.17 Any late payments shall be assessed an interest charge using the 123.18 interest rates specified for the debt service notes and capital 123.19 loan contracts. 123.20 (c) If a payment required under the maximum effort school 123.21 aid law is not made within 30 days, the commissioner may reduce 123.22 any subsequent payments due the district under chapters 124 and 123.23 124A by the amount due, after providing written notice to the 123.24 district. 123.25 Subd. 2. [APPLICATION OF PAYMENTS.] The commissioner shall 123.26 apply payments received from collections of maximum effort debt123.27 service levies in excess of required debt service levies of a123.28 district on its debt service notes and capital loan123.29 contractsunder the maximum effort school aid law and aids 123.30 withheld according to subdivision 1, paragraph (b), as follows: 123.31 First, to payment of interest accrued on its notes, if any; 123.32 second, to interest on its contracts, if any; third, toward 123.33 principal of its notes, if any; and last, toward principal of 123.34 its contracts, if any. While more than one note or more than 123.35 one contract is held, priority of payment of interest shall be 123.36 given to the one of earliest date, and after interest accrued on 124.1 all notes is paid, similar priority shall be given in the 124.2 application of any remaining amount to the payment of 124.3 principal. In any year when the receipts from a district are 124.4 not sufficient to pay the interest accrued on any of its notes 124.5 or contracts, the deficiency shall be added to the principal, 124.6 and the commissioner shall notify the district and each county 124.7 auditor concerned of the new amount of principal of the note or 124.8 contract. 124.9 Sec. 16. [124.825] [HISTORIC BUILDING REVENUE.] 124.10 Subdivision 1. [ELIGIBILITY.] A district that maintains a 124.11 school building listed on the National Register of Historic 124.12 Places is eligible for historic building revenue. 124.13 Subd. 2. [REVENUE.] A district's historic building revenue 124.14 is equal to $100 times the number of actual pupil units served 124.15 in the school building. 124.16 Subd. 3. [LEVY.] To obtain historic building revenue, a 124.17 district may levy an amount, not to exceed the district's 124.18 revenue, equal to the district's revenue authority for that year 124.19 times the lesser of one or the ratio of the adjusted net tax 124.20 capacity divided by its actual pupil units for that school year 124.21 to $10,000. 124.22 Subd. 4. [AID.] A district's historic building aid is 124.23 equal to the difference between the district's revenue minus the 124.24 levy. If a district does not levy the entire amount permitted, 124.25 the district's aid must be reduced in proportion to the amount 124.26 levied. 124.27 Sec. 17. Minnesota Statutes 1996, section 124.83, 124.28 subdivision 1, is amended to read: 124.29 Subdivision 1. [HEALTH AND SAFETY PROGRAM.] To receive 124.30 health and safety revenue for any fiscal year a district must 124.31 submit to the commissioner of children, families, and learning 124.32 an application for aid and levy by the date determined by the 124.33 commissioner. The application may be for hazardous substance 124.34 removal, fire and life safety code repairs, labor and industry 124.35 regulated facility and equipment violations, and health, safety, 124.36 and environmental management, including indoor air quality 125.1 management. The application must include a health and safety 125.2 program adopted by the school district board. The program must 125.3 include the estimated cost, per building, of the program by 125.4 fiscal year. 125.5 Sec. 18. Minnesota Statutes 1996, section 124.83, 125.6 subdivision 2, is amended to read: 125.7 Subd. 2. [CONTENTS OF PROGRAM.] A district must adopt a 125.8 health and safety program. The program must include plans, 125.9 where applicable, for hazardous substance removal, fire and life 125.10 safety code repairs, regulated facility and equipment 125.11 violations, and health, safety, and environmental management, 125.12 including indoor air quality management. 125.13 (a) A hazardous substance plan must contain provisions for 125.14 the removal or encapsulation of asbestos from school buildings 125.15 or property, asbestos-related repairs, cleanup and disposal of 125.16 polychlorinated biphenyls found in school buildings or property, 125.17 and cleanup, removal, disposal, and repairs related to storing 125.18 heating fuel or transportation fuels such as alcohol, gasoline, 125.19 fuel, oil, and special fuel, as defined in section 296.01. If a 125.20 district has already developed a plan for the removal or 125.21 encapsulation of asbestos as required by the federal Asbestos 125.22 Hazard Emergency Response Act of 1986, the district may use a 125.23 summary of that plan, which includes a description and schedule 125.24 of response actions, for purposes of this section. The plan 125.25 must also contain provisions to make modifications to existing 125.26 facilities and equipment necessary to limit personal exposure to 125.27 hazardous substances, as regulated by the federal Occupational 125.28 Safety and Health Administration under Code of Federal 125.29 Regulations, title 29, part 1910, subpart Z; or is determined by 125.30 the commissioner to present a significant risk to district staff 125.31 or student health and safety as a result of foreseeable use, 125.32 handling, accidental spill, exposure, or contamination. 125.33 (b) A fire and life safety plan must contain a description 125.34 of the current fire and life safety code violations, a plan for 125.35 the removal or repair of the fire and life safety hazard, and a 125.36 description of safety preparation and awareness procedures to be 126.1 followed until the hazard is fully corrected. 126.2 (c) A facilities and equipment violation plan must contain 126.3 provisions to correct health and safety hazards as provided in 126.4 department of labor and industry standards pursuant to section 126.5 182.655. 126.6 (d) A health, safety, and environmental management plan 126.7 must contain a description of training, record keeping, hazard 126.8 assessment, and program management as defined in section 124.829. 126.9 (e) A plan to test for and mitigate radon produced hazards. 126.10 (f) A plan to monitor and improve indoor air quality. 126.11 Sec. 19. Minnesota Statutes 1996, section 124.91, 126.12 subdivision 1, is amended to read: 126.13 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When a 126.14 district finds it economically advantageous to rent or lease a 126.15 building or land for any instructional purposes or for school 126.16 storage or furniture repair, and it determines that 126.17 the operating capital expenditure facilities revenuesrevenue 126.18 authorized under sections 124.243 andsection 124A.22, 126.19 subdivision 10, are insufficient for this purpose, it may apply 126.20 to the commissioner for permission to make an additional capital 126.21 expenditure levy for this purpose. An application for 126.22 permission to levy under this subdivision must contain financial 126.23 justification for the proposed levy, the terms and conditions of 126.24 the proposed lease, and a description of the space to be leased 126.25 and its proposed use. 126.26 (b) The criteria for approval of applications to levy under 126.27 this subdivision must include: the reasonableness of the price, 126.28 the appropriateness of the space to the proposed activity, the 126.29 feasibility of transporting pupils to the leased building or 126.30 land, conformity of the lease to the laws and rules of the state 126.31 of Minnesota, and the appropriateness of the proposed lease to 126.32 the space needs and the financial condition of the district. 126.33 The commissioner must not authorize a levy under this 126.34 subdivision in an amount greater than the cost to the district 126.35 of renting or leasing a building or land for approved purposes. 126.36 The proceeds of this levy must not be used for custodial or 127.1 other maintenance services. A district may not levy under this 127.2 subdivision for the purpose of leasing or renting a 127.3 district-owned building to itself. 127.4 (c) For agreements finalized after July 1, 1997, a district 127.5 may not levy under this subdivision for the purpose of leasing: 127.6 (1) a newly constructed building used primarily for regular 127.7 kindergarten, elementary, or secondary instruction; or (2) a 127.8 newly constructed building addition or additions used primarily 127.9 for regular kindergarten, elementary, or secondary instruction 127.10 that contains more than 20 percent of the square footage of the 127.11 previously existing building. 127.12 (d) The total levy under this subdivision for a district 127.13 for any year must not exceed $100 times the actual pupil units 127.14 for the fiscal year to which the levy is attributable. 127.15 Sec. 20. Minnesota Statutes 1996, section 124.95, 127.16 subdivision 2, is amended to read: 127.17 Subd. 2. [ELIGIBILITY.] (a) The following portions of a 127.18 district's debt service levy qualify for debt service 127.19 equalization: 127.20 (1) debt service for repayment of principal and interest on 127.21 bonds issued before July 2, 1992; 127.22 (2) debt service for bonds refinanced after July 1, 1992, 127.23 if the bond schedule has been approved by the commissioner and, 127.24 if necessary, adjusted to reflect a 20-year maturity schedule; 127.25 and 127.26 (3) debt service for bonds issued after July 1, 1992, for 127.27 construction projects that have received a positive review and 127.28 comment according to section 121.15, if the commissioner has 127.29 determined that the district has met the criteria under section 127.30 124.431, subdivision 2, and if the bond schedule has been 127.31 approved by the commissioner and, if necessary, adjusted to 127.32 reflect a 20-year maturity schedule. 127.33 (b) The criterion in section 124.431, subdivision 2, 127.34 paragraph (a), clause (2), shall be considered to have been met 127.35 if the district in the fiscal year in which the bonds are 127.36 authorized at an election conducted under chapter 475: 128.1 (i) serves an average of at least 66 pupils per grade in128.2 the grades to be served by the facilityif grades 9 through 12 128.3 are to be served by the facility, and an average of at least 66 128.4 pupils per grade in these grades are served; or 128.5 (ii) is eligible for elementary or secondary sparsity 128.6 revenue. 128.7 (c) The criterion in section 124.431, subdivision 2, 128.8 paragraph (a), clause (2), shall also be considered to have been 128.9 met if the construction project under review serves students in 128.10 kindergarten to grade 8. Only the debt service levy for that 128.11 portion of the facility serving students in prekindergarten to 128.12 grade 8, as determined by the commissioner, shall be eligible 128.13 for debt service equalization under this paragraph. 128.14 (d) The criterion described in section 124.431, subdivision 128.15 2, paragraph (a), clause (9), does not apply to bonds authorized 128.16 by elections held before July 1, 1992. 128.17 (e) For the purpose of this subdivision the department 128.18 shall determine the eligibility for sparsity at the location of 128.19 the new facility, or the site of the new facility closest to the 128.20 nearest operating school if there is more than one new facility. 128.21 (f) Notwithstanding paragraphs (a) to (e), debt service for 128.22 repayment of principal and interest on bonds issued after July 128.23 1, 1997, does not qualify for debt service equalization aid 128.24 unless the primary purpose of the facility is to serve students 128.25 in kindergarten through grade 12. 128.26 Sec. 21. Minnesota Statutes 1996, section 124.961, is 128.27 amended to read: 128.28 124.961 [DEBT SERVICE APPROPRIATION.] 128.29 (a) $30,054,000$35,480,000 in fiscal year 128.30 19961998, $28,162,000$38,159,000 in fiscal year 19971999, 128.31 and $33,948,000$38,390,000 in fiscal year 19982000 and each 128.32 year thereafter is appropriated from the general fund to the 128.33 commissioner of children, families, and learning for payment of 128.34 debt service equalization aid under section 124.95. The 1998128.35 2000 appropriation includes $4,970,000$3,842,000 for 1997128.36 1999 and $28,978,000$34,548,000 for 19982000. 129.1 (b) The appropriations in paragraph (a) must be reduced by 129.2 the amount of any money specifically appropriated for the same 129.3 purpose in any year from any state fund. 129.4 Sec. 22. Minnesota Statutes 1996, section 124A.22, 129.5 subdivision 10, is amended to read: 129.6 Subd. 10. [TOTAL OPERATING CAPITAL REVENUE.] (a) For 129.7 fiscal year 19971999 and thereafter, total operating capital 129.8 revenue for a district equals the amount determined under 129.9 paragraph (b) ,or (c), (d), (e), or (f),plus $68 times the 129.10 actual pupil units for the school year. The revenue must be 129.11 placed in a reserved account in the general fund and may only be 129.12 used according to subdivision 11. 129.13 (b) For fiscal years 19961999 and later, capital revenue 129.14 for a district equals $100 times the district's maintenance cost 129.15 index times its actual pupil units for the school year. 129.16 (c) For 1996 and later fiscal years, the previous formula 129.17 revenue for a district equals $128 times its actual pupil units 129.18 for fiscal year 1995the school year. 129.19 (d) Notwithstanding paragraph (b), for fiscal year 1996,129.20 the revenue for each district equals 25 percent of the amount129.21 determined in paragraph (b) plus 75 percent of the previous129.22 formula revenue.129.23 (e) Notwithstanding paragraph (b), for fiscal year 1997,129.24 the revenue for each district equals 50 percent of the amount129.25 determined in paragraph (b) plus 50 percent of the previous129.26 formula revenue.129.27 (f) Notwithstanding paragraph (b), for fiscal year 1998,129.28 the revenue for each district equals 75 percent of the amount129.29 determined in paragraph (b) plus 25 percent of the previous129.30 formula revenue.129.31 (g)For fiscal years 1998 and later, the revenue for a 129.32 district that operates a program under section 121.585, is 129.33 increased by an amount equal to $15$30 times the number of 129.34 actual pupil units at the site where the program is implemented. 129.35 Sec. 23. Minnesota Statutes 1996, section 124A.22, 129.36 subdivision 11, is amended to read: 130.1 Subd. 11. [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 130.2 operating capital revenue may be used only for the following 130.3 purposes: 130.4 (1) to acquire land for school purposes; 130.5 (2) to acquire or construct buildings for school purposes, 130.6 up to $400,000; 130.7 (3) to rent or lease buildings, including the costs of 130.8 building repair or improvement that are part of a lease 130.9 agreement; 130.10 (4) to improve and repair school sites and buildings, and 130.11 equip or reequip school buildings with permanent attached 130.12 fixtures; 130.13 (5) for a surplus school building that is used 130.14 substantially for a public nonschool purpose; 130.15 (6) to eliminate barriers or increase access to school 130.16 buildings by individuals with a disability; 130.17 (7) to bring school buildings into compliance with the 130.18 uniform fire code adopted according to chapter 299F; 130.19 (8) to remove asbestos from school buildings, encapsulate 130.20 asbestos, or make asbestos-related repairs; 130.21 (9) to clean up and dispose of polychlorinated biphenyls 130.22 found in school buildings; 130.23 (10) to clean up, remove, dispose of, and make repairs 130.24 related to storing heating fuel or transportation fuels such as 130.25 alcohol, gasoline, fuel oil, and special fuel, as defined in 130.26 section 296.01; 130.27 (11) for energy audits for school buildings and to modify 130.28 buildings if the audit indicates the cost of the modification 130.29 can be recovered within ten years; 130.30 (12) to improve buildings that are leased according to 130.31 section 123.36, subdivision 10; 130.32 (13) to pay special assessments levied against school 130.33 property but not to pay assessments for service charges; 130.34 (14) to pay principal and interest on state loans for 130.35 energy conservation according to section 216C.37 or loans made 130.36 under the northeast Minnesota economic protection trust fund act 131.1 according to sections 298.292 to 298.298; 131.2 (15) to purchase or lease interactive telecommunications 131.3 equipment; 131.4 (16) by school board resolution, to transfer money into the 131.5 debt redemption fund to: (i) pay the amounts needed to meet, 131.6 when due, principal and interest payments on certain obligations 131.7 issued according to chapter 475; or (ii) pay principal and 131.8 interest on debt service loans or capital loans according to 131.9 section 124.44; 131.10 (17) to pay capital expenditure equipment-related 131.11 assessments of any entity formed under a cooperative agreement 131.12 between two or more districts; 131.13 (18) to purchase or lease computers and related materials, 131.14 copying machines, telecommunications equipment, and other 131.15 noninstructional equipment; 131.16 (19) to purchase or lease assistive technology or equipment 131.17 for instructional programs; 131.18 (20) to purchase textbooks; 131.19 (21) to purchase new and replacement library books; 131.20 (22) to purchase vehicles; 131.21 (23) to purchase or lease telecommunications equipment, 131.22 computers, and related equipment for integrated information 131.23 management systems for: 131.24 (i) managing and reporting learner outcome information for 131.25 all students under a results-oriented graduation rule; 131.26 (ii) managing student assessment, services, and achievement 131.27 information required for students with individual education 131.28 plans; and 131.29 (iii) other classroom information management needs; and 131.30 (24) to pay personnel costs directly related to the 131.31 acquisition, operation, and maintenance of telecommunications 131.32 systems, computers, related equipment, and network and 131.33 applications software. 131.34 Sec. 24. Minnesota Statutes 1996, section 136D.72, 131.35 subdivision 2, is amended to read: 131.36 Subd. 2. [TERMS.] The terms of the members of the first132.1 school board shall, as nearly as possible, consist of one-third132.2 of the members for one year, one-third of the members for two132.3 years, and one-third of the members for three years. The132.4 members of the first board shall determine by lot which length132.5 of term each member of the first board shall be assigned.Terms 132.6 of office of the members of the board shall expire on June 30132.7 January 1. Thereafter the terms of office of board members 132.8 shall be for threefour years commencing on July 1January 1 of 132.9 each year. If a vacancy occurs on the board, it shall be filled 132.10 by the appropriate school board. A person appointed to the 132.11 board shall qualify as a board member by filing with the chief 132.12 executive officer thereof a written certificate of appointment 132.13 from the appointing school board. 132.14 Sec. 25. Minnesota Statutes 1996, section 136D.72, 132.15 subdivision 3, is amended to read: 132.16 Subd. 3. [ANNUAL ORGANIZATIONAL MEETING.] The first132.17 meeting of the first school board shall be at such time mutually132.18 agreed to by the members appointed by the participating school132.19 districts. ThereafterThe school board shall meet in July132.20 January of each year when notified of such meeting by the chief 132.21 executive officer of the intermediate school district. At such132.22 firstthe organizational meeting, the officers of the 132.23 intermediate school district for the current year shall be 132.24 chosen and such other organizational business as may be 132.25 necessary shall be conducted. 132.26 Sec. 26. [DUTIES OF THE DEPARTMENT OF CHILDREN, FAMILIES, 132.27 AND LEARNING.] 132.28 Subdivision 1. [DUTIES.] (a) The department of children, 132.29 families, and learning, in collaboration with the departments of 132.30 health and administration, school districts, and other public 132.31 and private agencies, must develop the following: 132.32 (1) an indoor air quality maintenance manual; 132.33 (2) a planning and construction manual to assure indoor air 132.34 quality; and 132.35 (3) a public information plan for students, parents, staff, 132.36 and other members of the public. 133.1 (b) The above manuals and plans shall include: 133.2 (1) process standards for school districts and the 133.3 department of children, families, and learning to follow when 133.4 addressing indoor air quality concerns; 133.5 (2) informational materials for a model school district 133.6 indoor air quality program; 133.7 (3) training needs for school district employees; 133.8 (4) procedures for school districts when disseminating 133.9 indoor air quality information and test results to parents, 133.10 teachers, and other persons; 133.11 (5) indoor air quality considerations under the review and 133.12 comment process for school buildings, specific evaluations of 133.13 proposed construction standards and materials, to be included in 133.14 the review and comment standards; 133.15 (6) building systems maintenance and housekeeping practices 133.16 required to assure adequate indoor air quality; 133.17 (7) architectural, engineering, maintenance engineering, 133.18 and other design practices to positively affect indoor air 133.19 quality; 133.20 (8) regional and state resources available to assist 133.21 districts with information and training needs of school staff, 133.22 parents, and community; 133.23 (9) regional and state resources available to assist 133.24 districts with medical evaluation relative to indoor air quality 133.25 complaints; and 133.26 (10) recommended steps a district should take to attain a 133.27 satisfactory level of indoor air quality. 133.28 Subd. 2. [RESOURCE MANUAL; REPORT.] The indoor air quality 133.29 resource manual must be made available for distribution and 133.30 training February 1, 1998, and a report regarding the status of 133.31 indoor air quality in Minnesota schools will be made to the 1998 133.32 legislature. 133.33 Sec. 27. [TRANSITION.] 133.34 As a result of section 24, the terms of office of members 133.35 and officers of the board shall be lengthened to expire on the 133.36 January 1 following the June 30 on which they otherwise would 134.1 have expired. 134.2 Sec. 28. [REVENUE USE APPROVAL.] 134.3 The use of revenue for construction in independent school 134.4 district No. 561, Goodridge, authorized in Laws 1995, First 134.5 Special Session chapter 3, article 8, section 23, and in 134.6 independent school district No. 600, Fisher, authorized in Laws 134.7 1995, First Special Session chapter 3, article 8, section 22, 134.8 subdivision 21, is approved. The department shall not make any 134.9 levy or aid adjustments related to these projects. 134.10 Sec. 29. [CHISAGO LAKES AREA SCHOOLS, BONDED DEBT.] 134.11 Independent school district No. 2144, Chisago Lakes Area, 134.12 may modify its plan adopted according to Minnesota Statutes, 134.13 section 122.242, subdivision 9, clause (1), so that independent 134.14 school district No. 2144 assumes all of the remaining debt 134.15 service as of the effective date of this section for bonds that 134.16 were outstanding at the time of the combination of independent 134.17 school districts No. 141, Chisago Lakes and No. 140, Taylors 134.18 Falls, and the tax levy for that debt service is spread on all 134.19 the property in independent school district No. 2144, Chisago 134.20 Lakes Area. 134.21 Sec. 30. [LEASE LEVY; NORTH ST. PAUL-MAPLEWOOD.] 134.22 Notwithstanding Minnesota Statutes, section 124.91, 134.23 subdivision 1, independent school district No. 622, North St. 134.24 Paul-Maplewood, annually may levy the amount necessary to pay 134.25 its obligations under a lease or a lease with option to purchase 134.26 agreement during the term of that agreement for the financing of 134.27 capital improvements approved by its school board to the 134.28 building, or any portion thereof, at 2520 East Twelfth Avenue, 134.29 North St. Paul. The total payments under the terms of the lease 134.30 may not exceed $4,000,000. The agreement must be executed by 134.31 July 1, 1998, and may include a sale and leaseback with option 134.32 to purchase with a public or private entity. The agreement is 134.33 not required to include a nonappropriation clause. An election 134.34 is not required in connection with the execution of the 134.35 agreement and the obligation created by the agreement does not 134.36 constitute debt and must not be included in the calculation of 135.1 net debt for the district. Levies under this section do not 135.2 qualify for debt service equalization aid. 135.3 Sec. 31. [LEVY FOR EXTENDED SCHOOL HOURS AND DAYS.] 135.4 In addition to other levies, independent school district 135.5 Nos. 622, North St. Paul-Maplewood-Oakdale; 833, South 135.6 Washington County; and 834, Stillwater may each levy up to 135.7 $200,000 each year for the costs of operating extended year, 135.8 extended day, or all day kindergarten programs at the joint 135.9 elementary facility authorized in Laws 1995, First Special 135.10 Session chapter 3, article 5, section 19. 135.11 Sec. 32. [SPECIAL EDUCATION AND SECONDARY VOCATIONAL 135.12 FACILITIES.] 135.13 The commissioner shall review and report on the quality, 135.14 availability, and accessibility of intermediate school district 135.15 special education and secondary vocational facilities and shall 135.16 make recommendations to the legislature concerning alternatives 135.17 that are cost-effective and in the best interests of the 135.18 students in such programs. 135.19 Sec. 33. [1996-1997 AVERAGE DAILY MEMBERSHIP.] 135.20 Notwithstanding Minnesota Statutes, section 124.17, the 135.21 1996-1997 average daily membership for a school building closed 135.22 due to flooding for part of the school year and reopened before 135.23 the end of the school year shall be the greater of the amount 135.24 that would have been computed if the school building had not 135.25 reopened or the amount computed using actual data for the entire 135.26 school year. 135.27 Sec. 34. [FISCAL YEAR 1998 DECLINING PUPIL UNIT AID.] 135.28 For fiscal year 1998 only, a school district with one or 135.29 more school buildings closed during the 1996-1997 school year 135.30 due to flooding is eligible for declining pupil unit aid equal 135.31 to the greater of zero or the product of the general education 135.32 formula allowance for fiscal year 1998 times the difference 135.33 between the district's actual pupil units for the 1996-1997 135.34 school year and the district's actual pupil units for the 135.35 1997-1998 school year. 135.36 Sec. 35. [APPROPRIATIONS.] 136.1 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 136.2 LEARNING.] The sums indicated in this section are appropriated 136.3 from the general fund to the department of children, families, 136.4 and learning for the fiscal years designated. 136.5 Subd. 2. [SPECIAL CONSOLIDATION AID.] For special 136.6 consolidation aid under Minnesota Statutes, section 124.2728: 136.7 $3,000 ..... 1998 136.8 The 1998 appropriation includes $3,000 for 1997 and $0 for 136.9 1998. 136.10 Subd. 3. [CONSOLIDATION TRANSITION AID.] For districts 136.11 consolidating under Minnesota Statutes, section 124.2726: 136.12 $1,254,000 ..... 1998 136.13 $1,151,000 ..... 1999 136.14 The 1998 appropriation includes $67,000 for 1997 and 136.15 $1,187,000 for 1998. 136.16 The 1999 appropriation includes $131,000 for 1998 and 136.17 $1,020,000 for 1999. 136.18 Any balance in the first year does not cancel but is 136.19 available in the second year. 136.20 Subd. 4. [COOPERATION AND COMBINATION AID.] For aid for 136.21 districts that cooperate and combine according to Minnesota 136.22 Statutes, section 124.2725: 136.23 $562,000 ..... 1998 136.24 $ 42,000 ..... 1999 136.25 The 1998 appropriation includes $178,000 for 1997 and 136.26 $384,000 for 1998. 136.27 The 1999 appropriation includes $42,000 for 1998 and $0 for 136.28 1999. 136.29 Any balance in the first year does not cancel but is 136.30 available in the second year. 136.31 Subd. 5. [DISTRICT COOPERATION REVENUE.] For district 136.32 cooperation revenue aid: 136.33 $9,766,000 ..... 1998 136.34 $8,780,000 ..... 1999 136.35 The 1998 appropriation includes $1,172,000 for 1997 and 136.36 $8,561,000 for 1998. 137.1 The 1999 appropriation includes $951,000 for 1998 and 137.2 $7,829,000 for 1999. 137.3 Subd. 6. [HISTORIC BUILDING AID.] For historic building 137.4 aid under section 124.825: 137.5 $173,000 ..... 1998 137.6 $173,000 ..... 1999 137.7 Subd. 7. [HIBBING GRANT.] For a grant to independent 137.8 school district No. 701, Hibbing, for expenses not covered by 137.9 insurance for a fire loss at Hibbing high school: 137.10 $250,000 ..... 1998 137.11 Independent school district No. 701, Hibbing, shall 137.12 reimburse the state general fund for any expenses covered by 137.13 this appropriation that are recovered as a result of a lawsuit 137.14 related to the fire loss at Hibbing high school. 137.15 Subd. 8. [PLANNING GRANT; ISLE.] For a facilities planning 137.16 grant to independent school district No. 473, Isle: 137.17 $100,000 ..... 1998 137.18 This appropriation is available until June 30, 1999. 137.19 Subd. 9. [FLOOD LOSSES.] For grants and loans to 137.20 independent school district Nos. 2854, Ada-Borup; 2176, 137.21 Warren-Alvarado-Oslo; 846, Breckenridge; 595, East Grand Forks; 137.22 and other districts affected by the 1997 floods for expenses 137.23 associated with the floods not covered by insurance or state or 137.24 federal disaster relief: 137.25 $4,700,000 ..... 1998 137.26 The commissioner shall award grants and loans to school 137.27 districts to cover expenses associated with the 1997 floods. 137.28 The grants or loans may be for capital losses or for 137.29 extraordinary operating expenses resulting from the floods. 137.30 School districts shall repay any loan or grant amounts to the 137.31 department if those amounts are otherwise funded from other 137.32 sources. The commissioner shall establish the terms and 137.33 conditions of any loans and may request any necessary 137.34 information from school districts before awarding a grant or 137.35 loan. This appropriation shall also be used to fund aid under 137.36 sections 33 and 34. 138.1 Sec. 36. [REPEALER.] 138.2 Minnesota Statutes 1996, section 124.2728, is repealed 138.3 effective for revenue for fiscal year 1999. 138.4 Sec. 37. [EFFECTIVE DATE.] 138.5 (a) Section 20 is effective for bonds outstanding on July 138.6 1, 1997, that meet the criteria in section 20 and is effective 138.7 for revenue for fiscal year 1999. 138.8 (b) Section 29 is effective the day following compliance by 138.9 the school board of independent school district No. 2144, 138.10 Chisago Lakes Area, with Minnesota Statutes, section 645.021, 138.11 and contingent upon successful passage of new bond issue under 138.12 Minnesota Statutes, section 475.58. 138.13 (c) Section 22 is effective for revenue for fiscal year 138.14 1999, except that the allowance increase in section 22 is 138.15 effective for revenue for fiscal year 1998, and the change in 138.16 previous formula revenue under paragraph (c) is effective 138.17 immediately. 138.18 (d) If this act is enacted on or after July 1, 1997, all 138.19 sections in this article except those sections listed in 138.20 paragraphs (a) to (c) are effective the day following final 138.21 enactment. 138.22 ARTICLE 5 138.23 EDUCATION EXCELLENCE 138.24 Section 1. Minnesota Statutes 1996, section 120.062, 138.25 subdivision 3, is amended to read: 138.26 Subd. 3. [ CLOSED DISTRICTSLIMITED ENROLLMENT OF 138.27 NONRESIDENT PUPILS.] (a) A school board may, by 138.28 resolution, determine thatlimit the enrollment of nonresident 138.29 pupils may not attend any ofin its schools or programs 138.30 according to this section .to a number not less than the lesser 138.31 of: 138.32 (1) one percent of the total enrollment at each grade level 138.33 in the district; or 138.34 (2) the number of district residents at that grade level 138.35 enrolled in a nonresident district according to this section. 138.36 (b) A district that limits enrollment of nonresident pupils 139.1 under paragraph (a) shall report to the commissioner by July 15 139.2 on the number of nonresident pupils denied admission due to the 139.3 limitations on the enrollment of nonresident pupils. 139.4 Sec. 2. Minnesota Statutes 1996, section 120.062, 139.5 subdivision 6, is amended to read: 139.6 Subd. 6. [NONRESIDENT DISTRICT PROCEDURES.] A district 139.7 that does not exclude nonresident pupils, according to139.8 subdivision 3,shall notify the parent or guardian in writing by 139.9 February 15 whether the application has been accepted or 139.10 rejected. If an application is rejected, the district must 139.11 state in the notification the reason for rejection. The parent 139.12 or guardian shall notify the nonresident district by March 1 139.13 whether the pupil intends to enroll in the nonresident 139.14 district. Notice of intent to enroll in the nonresident 139.15 district obligates the pupil to attend the nonresident district 139.16 during the following school year, unless the school boards of 139.17 the resident and the nonresident districts agree in writing to 139.18 allow the pupil to transfer back to the resident district, or 139.19 the pupil's parents or guardians change residence to another 139.20 district. If a parent or guardian does not notify the 139.21 nonresident district, the pupil may not enroll in that 139.22 nonresident district during the following school year, unless 139.23 the school boards of the resident and nonresident district agree 139.24 otherwise. The nonresident district shall notify the resident 139.25 district by March 15 of the pupil's intent to enroll in the 139.26 nonresident district. The same procedures apply to a pupil who 139.27 applies to transfer from one participating nonresident district 139.28 to another participating nonresident district. 139.29 Sec. 3. Minnesota Statutes 1996, section 120.062, 139.30 subdivision 7, is amended to read: 139.31 Subd. 7. [BASIS FOR DECISIONS.] The school board must 139.32 adopt, by resolution, specific standards for acceptance and 139.33 rejection of applications. Standards may include the capacity 139.34 of a program, class, grade level,or school building. The 139.35 school board may not reject applications for enrollment in a 139.36 particular grade level if the nonresident enrollment at that 140.1 grade level does not exceed the limit set by the board under 140.2 subdivision 3. Standards may not include previous academic 140.3 achievement, athletic or other extracurricular ability, 140.4 disabling conditions, proficiency in the English language, or140.5 previous disciplinary proceedings, or the student's district of 140.6 residence. 140.7 Sec. 4. Minnesota Statutes 1996, section 120.062, 140.8 subdivision 11, is amended to read: 140.9 Subd. 11. [INFORMATION.] A district that does not exclude140.10 nonresident pupils according to subdivision 3shall make 140.11 information about the district, schools, programs, policies, and 140.12 procedures available to all interested people. 140.13 Sec. 5. Minnesota Statutes 1996, section 120.064, 140.14 subdivision 3, is amended to read: 140.15 Subd. 3. [SPONSOR.] A school board, private college, 140.16 community college, state university, technical college, or the 140.17 University of Minnesota may sponsor one or more charter schools. 140.18 No more than a total of 40 charter schools may be140.19 authorized not more than three of which may be sponsored by140.20 public post-secondary institutions. The state board of140.21 education shall advise potential sponsors when the maximum140.22 number of charter schools has been authorized.140.23 Sec. 6. Minnesota Statutes 1996, section 120.064, 140.24 subdivision 8, is amended to read: 140.25 Subd. 8. [REQUIREMENTS.] (a) A charter school shall meet 140.26 all applicable state and local health and safety requirements. 140.27 (b) TheA school mustsponsored by a school board may be 140.28 located in the sponsoringany district, unless anotherthe 140.29 school board agrees to locate a charter school sponsored by140.30 another district in its boundariesof the district of the 140.31 proposed location disapproves by written resolution. If such a 140.32 school board denies a request to locate within its boundaries a 140.33 charter school sponsored by another districtschool board, the 140.34 sponsoring districtschool board may appeal to the state board 140.35 of education. If the state board authorizes the school, the 140.36 state board shall sponsor the school. 141.1 (c) A charter school must be nonsectarian in its programs, 141.2 admission policies, employment practices, and all other 141.3 operations. A sponsor may not authorize a charter school or 141.4 program that is affiliated with a nonpublic sectarian school or 141.5 a religious institution. 141.6 (d) Charter schools shall not be used as a method of 141.7 providing education or generating revenue for students who are 141.8 being home-schooled. 141.9 (e) The primary focus of a charter school must be to 141.10 provide a comprehensive program of instruction for at least one 141.11 grade or age group from five through 18 years of age. 141.12 Instruction may be provided to people younger than five years 141.13 and older than 18 years of age. 141.14 (f) A charter school may not charge tuition. 141.15 (g) A charter school is subject to and shall comply with 141.16 chapter 363 and section 126.21. 141.17 (h) A charter school is subject to and shall comply with 141.18 the pupil fair dismissal act, sections 127.26 to 127.39, and the 141.19 Minnesota public school fee law, sections 120.71 to 120.76. 141.20 (i) A charter school is subject to the same financial 141.21 audits, audit procedures, and audit requirements as a school 141.22 district. The audit must be consistent with the requirements of 141.23 sections 121.904 to 121.917, except to the extent deviations are 141.24 necessary because of the program at the school. The department 141.25 of children, families, and learning, state auditor, or 141.26 legislative auditor may conduct financial, program, or 141.27 compliance audits. 141.28 (j) A charter school is a school district for the purposes 141.29 of tort liability under chapter 466. 141.30 Sec. 7. Minnesota Statutes 1996, section 120.064, 141.31 subdivision 10, is amended to read: 141.32 Subd. 10. [PUPIL PERFORMANCE.] A charter school must 141.33 design its programs to at least meet the outcomes adopted by the 141.34 state board of education for public school students. In the 141.35 absence of state board requirements, the school must meet the 141.36 outcomes contained in the contract with the sponsor. The 142.1 achievement levels of the outcomes contained in the contract may 142.2 exceed the achievement levels of any outcomes adopted by the 142.3 state board for public school students. 142.4 Sec. 8. Minnesota Statutes 1996, section 120.064, is 142.5 amended by adding a subdivision to read: 142.6 Subd. 14a. [REVIEW AND COMMENT.] The department shall 142.7 review and comment on the evaluation, by the chartering school 142.8 district, of the performance of a charter school before the 142.9 charter school's contract is renewed. The information from the 142.10 review and comment shall be reported to the state board of 142.11 education in a timely manner. Periodically, the state board 142.12 shall report trends or suggestions based on the evaluation of 142.13 charter school contracts to the education committees of the 142.14 state legislature. 142.15 Sec. 9. Minnesota Statutes 1996, section 120.064, 142.16 subdivision 20a, is amended to read: 142.17 Subd. 20a. [ TEACHERSTEACHER AND OTHER EMPLOYEE 142.18 RETIREMENT.] (a) Teachers in a charter school shall be public 142.19 school teachers for the purposes of chapters 354 and 354a. 142.20 (b) Except for teachers under paragraph (a), employees in a 142.21 charter school shall be public employees for the purposes of 142.22 chapter 353. 142.23 Sec. 10. Minnesota Statutes 1996, section 121.611, is 142.24 amended to read: 142.25 121.611 [NONLICENSED COMMUNITY EXPERTS; VARIANCE.] 142.26 Subdivision 1. [AUTHORIZATION.] Notwithstanding any law or 142.27 state board of education rule to the contrary, the board of 142.28 teaching may allow school districts or charter schools to hire 142.29 nonlicensed community experts to teach in the public schools or 142.30 charter schools on a limited basis according to this section. 142.31 Subd. 2. [APPLICATIONS; CRITERIA.] The school district or 142.32 charter school shall apply to the board of teaching for approval 142.33 to hire nonlicensed teaching personnel from the community. In 142.34 approving or disapproving the district'sapplication for each 142.35 community expert, the board shall consider: 142.36 (1) the qualifications of the community person whom the 143.1 district or charter school proposes to employ; 143.2 (2) the reasons for the district'sneed for a variance from 143.3 the teacher licensure requirements; 143.4 (3) the district's efforts to obtain licensed teachers, who 143.5 are acceptable to the school board, for the particular course or 143.6 subject area or the charter school's efforts to obtain licensed 143.7 teachers for the particular course or subject area; 143.8 (4) the amount of teaching time for which the community 143.9 expert would be hired; 143.10 (5) the extent to which the district or charter school is 143.11 utilizing other nonlicensed community experts under this 143.12 section; 143.13 (6) the nature of the community expert's proposed teaching 143.14 responsibility; and 143.15 (7) the proposed level of compensation to the community 143.16 expert. 143.17 Subd. 3. [APPROVAL OF PLAN.] The board of teaching shall 143.18 approve or disapprove an application within 60 days of receiving 143.19 it from a school district or charter school. 143.20 Sec. 11. Minnesota Statutes 1996, section 123.951, is 143.21 amended to read: 143.22 123.951 [SCHOOL SITE DECISION-MAKING AGREEMENT.] 143.23 Subdivision 1. [DEFINITION.] "Education site" means a 143.24 separate facility. A program within a facility is an education 143.25 site if the school board recognizes it as a site. 143.26 Subd. 2. [AGREEMENT.] (a) AEither the school board or the 143.27 school site decision-making team may request that the school 143.28 board mayenter into an agreement with a school site 143.29 decision-making team concerning the governance, management, or 143.30 control of anythe school in the district. Upon a written143.31 request from a proposed school site decision-making team, An143.32 initialA school site decision-making team shall be appointed by143.33 the school board andmay include the school 143.34 principal, representatives ofteachers in the school or their 143.35 designee, representatives ofother employees in the 143.36 school, representatives ofparents of pupils in the school, 144.1 representatives of pupils in the school, representatives ofor 144.2 other members in the community , or others determined appropriate144.3 by the board. The school site decision-making team shall 144.4 include the school principal or other person having general 144.5 control and supervision of the school. The site decision-making 144.6 team must reflect the diversity of the education site. No more 144.7 than one-half of the members shall be employees of the district. 144.8 (b) School site decision-making agreements must delegate 144.9 powers and, duties, and broad management responsibilities to 144.10 site teams and involve staff members, students as appropriate, 144.11 and parents in decision making. 144.12 (c) An agreement shall include a statement of powers, 144.13 duties, responsibilities, and authority to be delegated to and 144.14 within the site. 144.15 (d) An agreement may include: 144.16 (1) a mechanism to implement flexible support systems for144.17 improvement in student achievement of education outcomesan 144.18 achievement contract according to subdivision 4; 144.19 (2) a decision-making structure that allows teachers to144.20 identify instructional problems and control and apply the144.21 resources needed to solve them;144.22 (3)a mechanism to allow principals, or other persons 144.23 having general control and supervision of the school, to make 144.24 decisions regarding how financial and personnel resources are 144.25 best allocated at the site and from whom goods or services are 144.26 purchased; 144.27 (4)(3) a mechanism to implement parental involvement 144.28 programs under section 126.69 and to provide for effective 144.29 parental communication and feedback on this involvement at the 144.30 site level; 144.31 (5)(4) a provision that would allow the team to determine 144.32 who is hired into licensed and nonlicensed positions; 144.33 (6)(5) a provision that would allow teachers to choose the 144.34 principal or other person having general control; 144.35 (7) direct contact with other social service providers;144.36 (8) in-service training for site decision-making team145.1 members for financial management of school sites; and145.2 (9)(6) an amount of revenue allocated to the site under 145.3 subdivision 3; and 145.4 (7) any other powers and duties determined appropriate by 145.5 the board. 145.6 The school board of the district remains the legal employer 145.7 under clauses (5)(4) and (6)(5). 145.8 (d)(e) Any powers or duties not delegated to the school 145.9 site management team in the school site management agreement 145.10 shall remain with the school board. 145.11 (e)(f) Approved agreements shall be filed with the 145.12 commissioner. If a school board denies a request to enter into 145.13 a school site management agreement, it shall provide a copy of 145.14 the request and the reasons for its denial to the commissioner. 145.15 Subd. 3. [REVENUE AND COST ALLOCATION.] Revenue for a 145.16 fiscal year received or receivable by the district shall be 145.17 allocated to education sites based on the agreement between the 145.18 school board and the site decision-making team. Revenue shall 145.19 remain allocated to each site until used by the site. The site 145.20 teams and the board may enter an agreement that permits the 145.21 district to provide services and retain the revenue required to 145.22 pay for the services provided. The district remains responsible 145.23 for legally entering into contracts and expending funds. For 145.24 the purposes of this subdivision, "allocation" means that the 145.25 determination of the use of the revenue shall be under the 145.26 control of the site. The district may charge the accounts of 145.27 each site the actual costs of goods and services from the 145.28 general or capital funds attributable to the site. 145.29 Subd. 4. [ACHIEVEMENT CONTRACT.] A school board may enter 145.30 a written education site achievement contract with each site 145.31 decision-making team for the purpose of setting learning 145.32 performance expectations for that site, including the goals for 145.33 improvement in each area of student performance during the next 145.34 year, a plan to assist the education site if their goals are not 145.35 achieved, and other performance expectations and measures 145.36 determined by the board and the site decision-making team. 146.1 Subd. 5. [COMMISSIONER'S ROLE.] The commissioner of 146.2 children, families, and learning, in consultation with 146.3 appropriate educational organizations, shall: 146.4 (1) upon request, provide technical support for districts 146.5 and sites with agreements under this section; 146.6 (2) conduct and compile research on the effectiveness of 146.7 site decision making; and 146.8 (3) periodically report on and evaluate the effectiveness 146.9 of site management agreements on a statewide basis. 146.10 Sec. 12. Minnesota Statutes 1996, section 123.972, 146.11 subdivision 5, is amended to read: 146.12 Subd. 5. [REPORT.] (a) By October 1 of each year, the 146.13 school board shall use standard statewide reporting procedures 146.14 the commissioner develops and adopt a report that includes the 146.15 following: 146.16 (1) student performance goals for meeting state graduation 146.17 standards adopted for that year; 146.18 (2) results of local assessment data, and any additional 146.19 test data; 146.20 (3) the annual school district improvement plans; and146.21 (4) information about district and learning site progress 146.22 in realizing previously adopted improvement plans; and 146.23 (5) the amount and type of revenue attributed to each 146.24 education site as defined in section 123.951, subdivision 2. 146.25 (b) The school board shall publish the report in the local 146.26 newspaper with the largest circulation in the district or by 146.27 mail. The board shall make a copy of the report available to 146.28 the public for inspection. The board shall send a copy of the 146.29 report to the commissioner of children, families, and learning 146.30 by October 15 of each year. 146.31 (c) The title of the report shall contain the name and 146.32 number of the school district and read "Annual Report on 146.33 Curriculum, Instruction, and Student Performance." The report 146.34 must include at least the following information about advisory 146.35 committee membership: 146.36 (1) the name of each committee member and the date when 147.1 that member's term expires; 147.2 (2) the method and criteria the school board uses to select 147.3 committee members; and 147.4 (3) the date by which a community resident must apply to 147.5 next serve on the committee. 147.6 Sec. 13. Minnesota Statutes 1996, section 124.248, is 147.7 amended by adding a subdivision to read: 147.8 Subd. 2a. [BUILDING LEASE AID.] When a charter school 147.9 finds it economically advantageous to rent or lease a building 147.10 or land for any instructional purposes and it determines that 147.11 the total operating capital revenue under section 124A.22, 147.12 subdivision 10, is insufficient for this purpose, it may apply 147.13 to the commissioner for building lease aid for this purpose. 147.14 Criteria for aid approval and revenue uses shall be as defined 147.15 for the building lease levy in section 124.91, subdivision 1. 147.16 The amount of building lease aid per pupil unit for a charter 147.17 school for any year shall not exceed the lesser of (a) 80 147.18 percent of the approved cost or (b) the product of the actual 147.19 pupil units for the current school year times the sum of the 147.20 state average debt redemption fund revenue plus capital revenue, 147.21 according to section 124.91, per actual pupil unit for the 147.22 current fiscal year. 147.23 Sec. 14. Minnesota Statutes 1996, section 124.248, 147.24 subdivision 4, is amended to read: 147.25 Subd. 4. [OTHER AID, GRANTS, REVENUE.] (a) A charter 147.26 school is eligible to receive other aids, grants, and revenue 147.27 according to chapters 120 to 129, as though it were a school 147.28 district except that, notwithstanding section 124.195, 147.29 subdivision 3, the payments shall be of an equal amount on each 147.30 of the 23 payment dates unless a charter school is in its first 147.31 year of operation in which case it shall receive on its first 147.32 payment date 1510 percent of its cumulative amount guaranteed 147.33 for the year and 22 payments of an equal amount thereafter the 147.34 sum of which shall be 8590 percent of the cumulative amount 147.35 guaranteed. However, it may not receive aid, a grant, or 147.36 revenue if a levy is required to obtain the money, except as 148.1 otherwise provided in this section. Federal aid received by the 148.2 state must be paid to the school, if it qualifies for the aid as 148.3 though it were a school district. 148.4 (b) Any revenue received from any source, other than148.5 revenue that is specifically allowed for operational,148.6 maintenance, capital facilities revenue under paragraph (c), and148.7 capital expenditure equipment costs under this section, may be148.8 used only for the planning and operational start-up costs of a148.9 charter school. Any unexpended revenue from any source under148.10 this paragraph must be returned to that revenue source or148.11 conveyed to the sponsoring school district, at the discretion of148.12 the revenue source.148.13 (c)A charter school may receive money from any source for 148.14 capital facilities needs. Any unexpended capital facilities148.15 revenue must be reserved and shall be expended only for future148.16 capital facilities purposes.In the year-end report to the 148.17 state board of education, the charter school shall report the 148.18 total amount of funds received from grants and other outside 148.19 sources. 148.20 Sec. 15. Minnesota Statutes 1996, section 124.248, is 148.21 amended by adding a subdivision to read: 148.22 Subd. 6. [START-UP COSTS.] During the first two years of a 148.23 charter school's operation, the charter school is eligible for 148.24 aid to pay for start-up costs and additional operating costs. 148.25 Start-up cost aid equals the greater of: 148.26 (1) $50,000 per charter school; or 148.27 (2) $500 times the charter school's pupil units for that 148.28 year. 148.29 Sec. 16. Minnesota Statutes 1996, section 125.05, 148.30 subdivision 1c, is amended to read: 148.31 Subd. 1c. [SUPERVISORY AND COACH QUALIFICATIONS; CODE OF 148.32 ETHICS.] The state board of education shall issue licenses under 148.33 its jurisdiction to persons the state board finds to be 148.34 qualified and competent for their respective positions under the 148.35 rules it adopts. The state board of education may develop, by 148.36 rule, a code of ethics for supervisory personnel covering 149.1 standards of professional practices, including areas of ethical 149.2 conduct and professional performance and methods of enforcement. 149.3 Sec. 17. Minnesota Statutes 1996, section 125.05, 149.4 subdivision 2, is amended to read: 149.5 Subd. 2. [EXPIRATION AND RENEWAL.] (a) Each license issued149.6 the department of children, families, and learning issues 149.7 through theits licensing section of the department of children,149.8 families, and learningmust bear the date of issue. Licenses 149.9 must expire and be renewed in accordance withaccording to the 149.10 respective rules adopted bythe board of teaching or the state 149.11 board of education adopts. Requirements for renewal ofrenewing 149.12 a license must include production ofshowing satisfactory 149.13 evidence of successful teaching experience for at least one 149.14 school year during the period covered by the license in grades 149.15 or subjects for which the license is valid or completion of149.16 completing such additional preparation as the board of 149.17 teaching shall prescribeprescribes. The state board of 149.18 education shall establish requirements for renewal ofrenewing 149.19 the licenses of supervisory personnel must be established by the149.20 state board of education. 149.21 (b) The board of teaching shall offer alternative 149.22 continuing relicensure options for teachers who are accepted 149.23 into and complete the national board for professional teaching 149.24 standards certification process, and offer additional continuing 149.25 relicensure options for teachers who earn national board for 149.26 professional teaching standards certification. Continuing 149.27 relicensure requirements for teachers who do not maintain 149.28 national board for professional teaching standards certification 149.29 are those the board prescribes. 149.30 Sec. 18. Minnesota Statutes 1996, section 126.22, 149.31 subdivision 3, is amended to read: 149.32 Subd. 3. [ELIGIBLE PROGRAMS.] (a) A pupil who is eligible 149.33 according to subdivision 2 may enroll in area learning centers 149.34 under sections 124C.45 to 124C.48, or according to section 149.35 121.11, subdivision 12. 149.36 (b) A pupil who is eligible according to subdivision 2 and 150.1 who is between the ages of 16 and 21 may enroll in 150.2 post-secondary courses under section 123.3514. 150.3 (c) A pupil who is eligible under subdivision 2, may enroll 150.4 in any public elementary or secondary education program. 150.5 However, a person who is eligible according to subdivision 2, 150.6 clause (b), may enroll only if the school board has adopted a 150.7 resolution approving the enrollment. 150.8 (d) A pupil who is eligible under subdivision 2, may enroll 150.9 in any nonprofit,nonpublic, nonsectarian school that has 150.10 contracted with the serving school district to provide 150.11 educational services. 150.12 (e) A pupil who is between the ages of 16 and 21 may enroll 150.13 in any adult basic education programs approved under section 150.14 124.26 and operated under the community education program 150.15 contained in section 121.88. 150.16 Sec. 19. Minnesota Statutes 1996, section 126.22, 150.17 subdivision 3a, is amended to read: 150.18 Subd. 3a. [ADDITIONAL ELIGIBLE PROGRAM.] A pupil who is at 150.19 least 16 years of age, who is eligible under subdivision 2, 150.20 clause (a), and who has been enrolled only in a public school, 150.21 if the pupil has been enrolled in any school, during the year 150.22 immediately before transferring under this subdivision, may 150.23 transfer to any nonprofit,nonpublic school that has contracted 150.24 with the serving school district to provide nonsectarian 150.25 educational services. Such a school must enroll every eligible 150.26 pupil who seeks to transfer to the school under this program 150.27 subject to available space. 150.28 Sec. 20. Laws 1995, First Special Session chapter 3, 150.29 article 11, section 21, subdivision 3, is amended to read: 150.30 Subd. 3. [CHARTER SCHOOL EVALUATION.] For the state board 150.31 of education to evaluate the performance of charter schools 150.32 authorized according to Minnesota Statutes, section 120.064: 150.33 $75,000 ..... 1996 150.34 The state board must review and comment on the evaluation,150.35 by the chartering school district, of the performance of a150.36 charter school before that charter school's contract is151.1 renewed. The state board may provide assistance to a school151.2 district in evaluating a charter school that has been chartered151.3 by that school board. The board must report annually to the151.4 education committees of the legislature on the results of its151.5 evaluations.This amount is available until June 30, 1997. 151.6 Sec. 21. Laws 1996, chapter 412, article 4, section 34, 151.7 subdivision 4, is amended to read: 151.8 Subd. 4. [COMMUNITY-BASED CHARTERSCHOOL GRANT.] For a 151.9 grant for community-based charter?schools involving the 151.10 participation of an operating foundation, the city and county, 151.11 and St. Paul public schools located in independent school 151.12 district No. 625, St. Paul: 151.13 $300,000 ..... 1997 151.14 The commissioner may establish criteria and any reporting 151.15 or match requirements for the grant under this section. 151.16 Sec. 22. [GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING 151.17 STANDARDS.] 151.18 Subdivision 1. [ESTABLISHMENT.] A grant program to promote 151.19 professional teaching standards through the national board for 151.20 professional teaching standards for fiscal year 1998 is 151.21 established to provide eligible teachers with the opportunity to 151.22 receive national board for professional teaching standards 151.23 certification and to reward teachers who have already received 151.24 such certification. 151.25 Subd. 2. [ELIGIBILITY.] An applicant for a grant must be a 151.26 licensed K-12 school teacher employed in a state school. To be 151.27 eligible for a grant, the teacher must have been employed as a 151.28 teacher for a minimum of five school years and demonstrate 151.29 either that the national board for professional teaching 151.30 standards has accepted the teacher as a candidate for board 151.31 certification or that the teacher already has received board 151.32 certification. 151.33 Subd. 3. [APPLICATION PROCESS.] To obtain a grant to 151.34 participate in the national board for professional teaching 151.35 standards certification process or to receive a reward for 151.36 already completing the board certification process, a teacher 152.1 must submit an application to the commissioner of children, 152.2 families, and learning in the form and manner the commissioner 152.3 establishes. The applicant must demonstrate either that the 152.4 national board for professional teaching standards has accepted 152.5 the teacher as a candidate for board certification or that the 152.6 teacher already has received board certification. The 152.7 commissioner shall consult with the state board of teaching when 152.8 reviewing the applications. 152.9 Subd. 4. [GRANT AWARDS; PROCEEDS.] (a) The commissioner 152.10 may award matching grants of $1,000 each to eligible teachers 152.11 who provide a matching amount through collaboration with either 152.12 a school district, professional organization, or both and are 152.13 accepted as candidates for national board for professional 152.14 teaching standards certification. Grant recipients shall use 152.15 the grant to participate in the certification process. Within 152.16 24 months of receiving certification, a grant recipient must 152.17 satisfactorily complete one year of teaching service in a state 152.18 school or repay the state the amount of the grant, except if the 152.19 commissioner determines that death or disability prevents the 152.20 grant recipient from providing the one year of teaching service. 152.21 (b) The commissioner may award grants to eligible teachers 152.22 who have earned national board for professional teaching 152.23 standards certification. The amount of each grant shall not 152.24 exceed $1,000 and the commissioner shall establish criteria to 152.25 determine the actual amount of each grant. Grant recipients 152.26 shall use the grant proceeds for educational purposes, including 152.27 purchasing instructional materials, equipment, or supplies and 152.28 realizing professional development opportunities. 152.29 Sec. 23. [LABORATORY SCHOOL GRANTS.] 152.30 Subdivision 1. [ESTABLISHMENT.] The commissioner of 152.31 children, families, and learning shall make grants to 152.32 post-secondary institutions to establish laboratory schools that 152.33 cooperate with interested school districts to develop innovative 152.34 teaching techniques that enhance students' learning 152.35 experiences. A laboratory school must be nonsectarian in its 152.36 programs, admissions policies, employment practices, and all 153.1 other operations. 153.2 Subd. 2. [GRANT APPLICATION.] A public or private 153.3 post-secondary institution located in the state may submit an 153.4 application for a grant. Each grant application must include: 153.5 (1) the location of the laboratory school determined in 153.6 collaboration with a school district, or proposed as a charter 153.7 school; 153.8 (2) a five-year fiscal plan demonstrating that the school 153.9 shall operate with no additional state revenue except revenue 153.10 received under Minnesota Statutes, chapters 124 and 124A, and 153.11 the grant money awarded under this section; and 153.12 (3) for an applicant seeking a grant to improve lifework 153.13 learning, a description of how the applicant will use 153.14 information technologies and participate in partnerships with 153.15 kindergarten through grade 12 schools and post-secondary 153.16 institutions, business and industry, labor, agriculture, 153.17 government, and community-based organizations. 153.18 The commissioner of children, families, and learning, in 153.19 consultation with interested post-secondary institutions, shall 153.20 establish guidelines and an application process for the grants. 153.21 In awarding a grant, the commissioner shall give priority to an 153.22 eligible applicant that meets the criteria in clause (3). 153.23 Subd. 3. [GRANT MONEY.] The grant money may be used for: 153.24 (1) technology; 153.25 (2) equipment; 153.26 (3) teacher mentorships; 153.27 (4) building remodeling, renovation, or repair; 153.28 (5) disseminating innovative and effective teaching 153.29 techniques; 153.30 (6) education research to develop teaching methods, 153.31 assessments, and curriculum design; 153.32 (7) developing creative opportunities for parental 153.33 involvement; 153.34 (8) furthering school integration efforts; and 153.35 (9) other inventive teaching and learning practices 153.36 designed to implement the high school graduation standards under 154.1 Minnesota Statutes, section 121.11, subdivision 7c. 154.2 Sec. 24. [GIFTED AND TALENTED GRANTS.] 154.3 Subdivision 1. [ESTABLISHMENT.] Gifted and talented grants 154.4 are established to provide access to an appropriate program for 154.5 students identified as gifted or talented. A school district or 154.6 any group of school districts must use the grants to establish a 154.7 process for identifying gifted and talented students, offer 154.8 access to challenging learning experiences for students in 154.9 kindergarten through grade 12, and provide for staff development 154.10 in meeting the learning needs of gifted and talented students. 154.11 Subd. 2. [ELIGIBILITY; CRITERIA.] An applicant for a 154.12 gifted and talented grant must be a school district or any group 154.13 of school districts. The commissioner of children, families, 154.14 and learning, a representative of the alliance of the Minnesota 154.15 educators of the gifted and talented, a representative of the 154.16 Minnesota council of the gifted and talented, and a 154.17 representative of the challenge task force shall establish the 154.18 criteria for awarding grants for appropriate programs. 154.19 Subd. 3. [APPLICATION.] A school district or any group of 154.20 school districts must submit an application to the commissioner 154.21 of children, families, and learning in the form and manner the 154.22 commissioner establishes. 154.23 Subd. 4. [GRANT AWARDS.] A school district or any group of 154.24 districts may receive a grant in the amount of $25 per pupil per 154.25 year. The grant recipient must match one local dollar for every 154.26 state dollar received. The local match may include in kind 154.27 contributions. In awarding grants, the commissioner shall 154.28 consider which students will benefit most from these programs. 154.29 Sec. 25. [PERFORMANCE FUNDING OPTIONS.] 154.30 Consistent with state high school graduation requirements, 154.31 statewide testing requirements, and other performance 154.32 indicators, the commissioner, in consultation with the state 154.33 board of education and appropriate stakeholders, shall recommend 154.34 to the legislature performance funding options for successful 154.35 schools and for schools at risk to be implemented for the 154.36 1999-2000 school year. 155.1 Sec. 26. [DEADLINE AND PENALTY WAIVED.] 155.2 The deadline and penalty under Minnesota Statutes, section 155.3 124A.22, subdivision 2a, do not apply for aid payments for the 155.4 1998-1999 biennium. 155.5 Sec. 27. [ST. PAUL COMMUNITY-BASED SCHOOL PROGRAM; 155.6 APPROPRIATION.] 155.7 $3,300,000 in fiscal year 1998 is appropriated from the 155.8 general fund to the commissioner of children, families, and 155.9 learning for a grant to independent school district No. 625, St. 155.10 Paul, for the establishment and operation of a community-based 155.11 school program. The purpose of the program is to improve 155.12 student achievement and to provide an integrated set of 155.13 academic, health, social, and recreational support services 155.14 year-round, and for an extended day to children, families, and 155.15 the community. 155.16 Independent school district No. 625 shall collaborate with 155.17 the city of St. Paul; Ramsey county; the commissioner of 155.18 children, families, and learning; and a nonprofit operating 155.19 foundation located in St. Paul to establish and operate the 155.20 program. Before implementing the program, the district must 155.21 submit the following to the commissioner: 155.22 (1) the name and address of the school or schools to be 155.23 community-based schools; 155.24 (2) the grade levels and number of students to be served; 155.25 (3) general demographic characteristics of the area and 155.26 students to be served; 155.27 (4) the education curriculum and other programs to be 155.28 offered; 155.29 (5) the goals of the school and the means to measure 155.30 student achievement; 155.31 (6) a budget and operating plan, including the governing 155.32 structure, financial commitments, and program commitments by the 155.33 city, county, and foundation to the program; and 155.34 (7) documentation of community support. 155.35 This money may also be used to construct, remodel, design, 155.36 renovate, equip, and repair facilities used for a 156.1 community-based school program. This appropriation is available 156.2 until June 30, 1999. 156.3 $300,000 of this amount is for a grant for community-based 156.4 schools according to section 21. The total appropriation in 156.5 fiscal years 1997 and 1998 under this section and section 21 156.6 shall not exceed $3,300,000. 156.7 Sec. 28. [APPROPRIATIONS.] 156.8 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 156.9 LEARNING.] The sums indicated in this section are appropriated 156.10 from the general fund to the department of children, families, 156.11 and learning for the fiscal years designated. 156.12 Subd. 2. [STATEWIDE TESTING.] For implementing statewide 156.13 testing and establishing a performance baseline under section 25: 156.14 $2,500,000 ..... 1998 156.15 $2,500,000 ..... 1999 156.16 The commissioner shall contract with an institution of 156.17 higher education to establish an independent office of 156.18 educational accountability. 156.19 Any balance in the first year does not cancel but is 156.20 available in the second year. 156.21 Subd. 3. [LABORATORY SCHOOL GRANTS.] For laboratory school 156.22 grants under section 23: 156.23 $2,500,000 ..... 1998 156.24 Any balance in the first year does not cancel but is 156.25 available in the second year. 156.26 Subd. 4. [ADVANCED PLACEMENT AND INTERNATIONAL 156.27 BACCALAUREATE PROGRAMS.] For the state advanced placement and 156.28 international baccalaureate programs: 156.29 $1,875,000 ..... 1998 156.30 $1,875,000 ..... 1999 156.31 Notwithstanding Minnesota Statutes, section 126.239, 156.32 subdivisions 1 and 2, $200,000 each year is for teachers to 156.33 attend subject matter summer training programs and follow-up 156.34 support workshops approved by the advanced placement or 156.35 international baccalaureate programs. The amount of the subsidy 156.36 for each teacher attending an advanced placement or 157.1 international baccalaureate summer training program or workshop 157.2 shall be the same. The commissioner shall determine the payment 157.3 process and the amount of the subsidy. 157.4 Notwithstanding Minnesota Statutes, section 126.239, 157.5 subdivision 3, in each year to the extent of available 157.6 appropriations, the commissioner shall pay all examination fees 157.7 for all students sitting for an advanced placement examination, 157.8 international baccalaureate examination, or both. If this 157.9 amount is not adequate, the commissioner may pay less than the 157.10 full examination fee. 157.11 $300,000 each year is for student scholarships. A student 157.12 scholarship shall be awarded to a student scoring three or 157.13 better on one or more advanced placement examinations or a four 157.14 or better on one or more international baccalaureate 157.15 examinations. The amount of each scholarship shall range from 157.16 $150 to $500 based on the student's score on the exams. The 157.17 scholarships shall be awarded only to students who are enrolled 157.18 in a Minnesota public or private college or university. The 157.19 total amount of each scholarship shall be paid directly to the 157.20 student's designated college or university and must be used by 157.21 the student only for tuition, required fees, and books in 157.22 nonsectarian courses or programs. The higher education services 157.23 office, in consultation with the commissioner, shall determine 157.24 the payment process, the amount of the scholarships, and 157.25 provisions for unused scholarships. 157.26 In order to be eligible to receive advanced placement or 157.27 international baccalaureate scholarships on behalf of the 157.28 qualifying students, the college or university must have an 157.29 advanced placement, international baccalaureate, or both, credit 157.30 and placement policy for the scholarship recipients. In 157.31 addition, each college or university must certify these policies 157.32 to the department each year. The department must provide each 157.33 secondary school in the state with a copy of the post-secondary 157.34 advanced placement and international baccalaureate policies each 157.35 year. 157.36 $375,000 each year is for teacher stipends. A teacher who 158.1 teaches an advanced placement or international baccalaureate 158.2 course shall receive a stipend for each student in that 158.3 teacher's course who receives a three or better on the advanced 158.4 placement or a four or better on the international baccalaureate 158.5 examination that covers the subject matter of the course. The 158.6 commissioner shall determine the payment process and the amount 158.7 of the teacher stipend ranging from $25 to $50 for each student 158.8 receiving a qualifying score. 158.9 A stipend awarded to a teacher under this subdivision shall 158.10 not be a mandatory subject of bargaining under Minnesota 158.11 Statutes, chapter 179A, or any other law and shall not be a term 158.12 or condition of employment. The amount of any award shall be 158.13 final and shall not be subject to review by an arbitrator 158.14 through any grievance or other process or by a court through any 158.15 appeal process. 158.16 Any balance in the first year does not cancel but is 158.17 available in the second year. 158.18 Subd. 5. [TEACHER EDUCATION IMPROVEMENT.] For board of 158.19 teaching responsibilities relating to teacher licensure 158.20 restructuring and implementation of the teaching residency 158.21 program: 158.22 $450,000 ..... 1998 158.23 $450,000 ..... 1999 158.24 Any balance in the first year does not cancel but is 158.25 available in the second year. 158.26 The board of teaching shall use the funds for further 158.27 development of the results-oriented teacher licensure system, 158.28 for pilot site grants and other methods of implementing the 158.29 teacher residency program, and for programs relating to teacher 158.30 mentoring. 158.31 Subd. 6. [SCIENCE-MATHEMATICS GRANT.] For continuation of 158.32 systemic change in science and mathematics education programs: 158.33 $1,352,000 ..... 1998 158.34 $1,352,000 ..... 1999 158.35 $20,000 of the appropriation in 1998 and $20,000 in 1999 is 158.36 for the south central Minnesota talented youth program. 159.1 Any balance in the first year does not cancel but is 159.2 available in the second year. 159.3 Subd. 7. [MINNESOTA HOMEWORK HELPLINE; METRO HOMEWORK 159.4 HOTLINE.] For the Minnesota homework helpline and the metro 159.5 homework hotline: 159.6 $100,000 ..... 1998 159.7 $100,000 ..... 1999 159.8 These appropriations are available to assist students with 159.9 homework by telephone or other interactive technology. The 159.10 program providers must offer assistance to students five days 159.11 per week. The revenue allocated to each program is contingent 159.12 upon that program matching each $1 of state revenue with $2 of 159.13 local or private funding or in-kind contributions. 159.14 Subd. 8. [GIFTED AND TALENTED GRANTS.] For grants for 159.15 gifted and talented programs according to section 24: 159.16 $1,500,000 ..... 1998 159.17 $1,500,000 ..... 1999 159.18 Any balance in the first year does not cancel but is 159.19 available in the second year. 159.20 Subd. 9. [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For 159.21 grants to collaborative urban educator programs that prepare and 159.22 license people of color to teach: 159.23 $895,000 ..... 1998 159.24 This appropriation is available until June 30, 1999. 159.25 Subd. 10. [CHARTER SCHOOL BUILDING LEASE AID.] For 159.26 building lease aid according to section 124.248, subdivision 2a: 159.27 $1,078,000 ..... 1998 159.28 $1,577,000 ..... 1999 159.29 The 1999 appropriation includes $120,000 for 1998 and 159.30 $1,457,000 for 1999. 159.31 Subd. 11. [CHARTER SCHOOL START-UP GRANTS.] For charter 159.32 school start-up cost aid under Minnesota Statutes, section 159.33 124.248: 159.34 $500,000 ..... 1998 159.35 $1,000,000 ..... 1999 159.36 Any balance in the first year does not cancel but is 160.1 available in the second year. This appropriation may also be 160.2 used for grants to convert existing schools into charter schools. 160.3 Subd. 12. [GRADUATION RULE IMPLEMENTATION AT THE SITE 160.4 AID.] For graduation rule implementation: 160.5 $10,000,000 ..... 1998 160.6 (a) This appropriation shall be paid to districts according 160.7 to paragraph (b). The purpose of the aid is to accelerate the 160.8 implementation of the graduation rule throughout all education 160.9 sites in the district through intensive staff development and 160.10 decentralized decision making. The board shall work with the 160.11 teaching staff in the district to determine the most effective 160.12 staff development processes to assure an acceleration of the 160.13 implementation. This appropriation is one-time only. 160.14 (b) A district shall receive aid equal to $10 times the 160.15 number of pupil units in the district for fiscal year 1998. At 160.16 least 30 percent must be used for the purposes of paragraph (a). 160.17 Subd. 13. [WEST ST. PAUL-MENDOTA HEIGHTS-EAGAN GRANT.] For 160.18 a grant to independent school district No. 197, West St. 160.19 Paul-Mendota Heights-Eagan, for implementing multiple pathways 160.20 for students to meet graduation standards: 160.21 $167,000 ..... 1998 160.22 The district must match the grant in an amount determined 160.23 by the commissioner of children, families, and learning. The 160.24 appropriation is available until June 30, 1999. 160.25 Subd. 14. [PROFESSIONAL TEACHING STANDARDS CERTIFICATION 160.26 GRANTS.] For grants to teachers for professional teaching 160.27 standards certification: 160.28 $400,000 ..... 1998 160.29 This appropriation shall be used for grants to eligible 160.30 teachers accepted as candidates for national board for 160.31 professional teaching standards certification; for grants to 160.32 eligible teachers who have earned national board for 160.33 professional teaching standards certification for purchasing 160.34 instructional materials, equipment, or supplies and realizing 160.35 professional development opportunities; and for the commissioner 160.36 to pay for four half-time state coordinators that grants to 161.1 school districts working cooperatively to establish support 161.2 networks to counsel and assist teacher candidates for national 161.3 board for professional teaching standards certification. The 161.4 grants must be used to hire up to four half-time statewide 161.5 coordinators who must be licensed kindergarten through grade 12 161.6 public school teachers. The commissioner shall determine the 161.7 form and manner for grant applications. Applications must 161.8 include an implementation plan that demonstrates collaboration 161.9 among school districts and professional organizations in 161.10 providing support activities to facilitate the work of the 161.11 coordinators. 161.12 Any balance in the first year does not cancel but is 161.13 available in the second year. 161.14 Subd. 15. [SCHOOL ENRICHMENT PARTNERSHIP PROGRAM.] For 161.15 school enrichment partnership program aid according to Minnesota 161.16 Statutes, section 124.255: 161.17 $500,000 ..... 1998 161.18 Any balance remaining in the first year does not cancel but 161.19 is available in the second year. 161.20 Subd. 16. [EARLY INTERVENTION READING CHALLENGE 161.21 GRANTS.] For early intervention reading challenge grants: 161.22 $500,000 ..... 1998 161.23 The commissioner of children, families, and learning shall 161.24 make grants to school sites to train teachers and adopt 161.25 curriculum enhancements that provide intense instruction for 161.26 students with difficulty learning to read. Priority shall be 161.27 given to school sites that are committed to significantly 161.28 increasing the percentage of students who are able to read at 161.29 grade level by the end of third grade and have high 161.30 concentrations of students receiving free and reduced lunch. 161.31 The grant money may be used for establishing the school site as 161.32 a training site for teachers in other districts, teacher 161.33 training, or other start-up costs related to curriculum 161.34 enhancements for early intervention reading programs for 161.35 children in primary grades. The grant recipients must match one 161.36 local dollar for every state dollar received. The local match 162.1 may include in-kind contributions. The commissioner shall 162.2 consider regional balance in distributing grants. 162.3 Subd. 17. [YEAR-ROUND SCHOOL/EXTENDED WEEK OR DAY GRANTS.] 162.4 For year-round school/extended week or day grants under Laws 162.5 1995, First Special Session chapter 3, article 7, section 4: 162.6 $1,800,000 ..... 1998 162.7 The department of children, families, and learning must 162.8 award grants to school districts with priority given to programs 162.9 that have not previously received year-round school/extended 162.10 week or day pilot grants. Of this amount, $500,000 is for a 162.11 grant to independent school district No. 624, White Bear Lake. 162.12 Of this amount, $225,000 is for a year-round school extended day 162.13 project in independent school district No. 911, Cambridge. Of 162.14 this amount, $200,000 is for the four-period day program at 162.15 independent school district No. 833, south Washington county. 162.16 The maximum grant amount for other recipients is $300,000. 162.17 Grant recipients are required to make reports on progress made, 162.18 planning, and implementing projects in the form and manner 162.19 specified by the department of children, families, and learning. 162.20 The senior high site councils in the independent school 162.21 district No. 833, south Washington county, shall develop and 162.22 implement a model four-period day curriculum during the 162.23 1997-1998 and 1998-1999 school years. The site councils shall 162.24 seek input from parents, teachers, and students in the design 162.25 and implementation of the four-period day model. If one or more 162.26 site councils determine a four-period day model is not 162.27 desirable, the site council shall report its recommendations 162.28 back to the board and need not proceed with the development and 162.29 implementation of the model. 162.30 The south Washington county school board shall develop a 162.31 system for monitoring and evaluating the development and 162.32 implementation of the four-period day models at its high 162.33 schools. The board shall monitor and evaluate: (1) the process 162.34 used by the site council to discuss, develop, and implement a 162.35 four-period day; and (2) the academic outcomes of students after 162.36 the four-period day has been fully implemented. To evaluate the 163.1 academic outcomes of students, the district shall compare the 163.2 academic achievement of its high school students with the 163.3 achievement of students in similar school districts using a 163.4 six-period day model. The board shall report the results of its 163.5 evaluation to the commissioner of children, families, and 163.6 learning on August 30, 1998, and August 30, 1999. The reports 163.7 shall include a detailed description of the site-based, 163.8 decision-making model that was used to develop and implement the 163.9 four-period day and the steps that were taken to successfully 163.10 implement and evaluate the model. 163.11 Independent school district No. 833, South Washington 163.12 County, shall complete a class size mitigation pilot project to 163.13 explore options for improving learning outcomes in elementary 163.14 and junior high classrooms with 30 or more students. The 163.15 options for mitigating the adverse impacts of large class sizes 163.16 shall be developed and implemented using a site-based management 163.17 decision-making process. The district shall report the results 163.18 of its pilot project to the commissioner of children, families, 163.19 and learning by August 30, 1998. 163.20 Sec. 29. [REPEALER.] 163.21 Minnesota Statutes 1996, section 121.11, subdivision 8, is 163.22 repealed. 163.23 Sec. 30. [EFFECTIVE DATE.] 163.24 If this act is enacted on or after July 1, 1997, sections 1 163.25 to 29 are effective the day following final enactment. 163.26 ARTICLE 6 163.27 ACADEMIC PERFORMANCE 163.28 Section 1. Minnesota Statutes 1996, section 120.101, 163.29 subdivision 5, is amended to read: 163.30 Subd. 5. [AGES AND TERMS.] For the 1988-1989 school year163.31 and the school years thereafter,Every child between seven and 163.32 16 years of age shall receive instruction for at least the163.33 number of days each year required under subdivision 5b. For the163.34 2000-2001 school year and later school years, every child163.35 between seven and 18 years of age shall receive instruction for163.36 at least the number of days each year required under subdivision164.1 5b.Every child under the age of seven who is enrolled in a 164.2 half-day kindergarten, or a full-day kindergarten program on 164.3 alternate days, or other kindergarten programs shall receive 164.4 instruction at least equivalent to half of each day for the164.5 number of days each year set out in subdivision 5b. Except as 164.6 provided in subdivision 5a, a parent may withdraw a child under 164.7 the age of seven from enrollment at any time. 164.8 Sec. 2. Minnesota Statutes 1996, section 120.101, is 164.9 amended by adding a subdivision to read: 164.10 Subd. 5d. [WITHDRAWAL FROM SCHOOL.] Any student between 16 164.11 and 18 years old who seeks to withdraw from school, and the 164.12 student's parent or guardian must: 164.13 (1) attend a meeting with school personnel to discuss the 164.14 educational opportunities available to the student, including 164.15 alternative educational opportunities; and 164.16 (2) sign a written election to withdraw from school. 164.17 Sec. 3. [120.1015] [LENGTH OF SCHOOL YEAR; DAYS OF 164.18 INSTRUCTION.] 164.19 A school board's annual school calendar shall include at 164.20 least three additional days of student instruction beyond the 164.21 number of days of student instruction the board formally adopted 164.22 as its school calendar at the beginning of the 1996-1997 school 164.23 year. 164.24 Sec. 4. Minnesota Statutes 1996, section 121.602, 164.25 subdivision 1, is amended to read: 164.26 Subdivision 1. [PROGRAM OUTCOMES.] The outcomes of the 164.27 educational effectiveness program are to: 164.28 (1) increase meaningful parental involvement in site-based 164.29 decision making; 164.30 (2) improve results-oriented instructionaleducational 164.31 processes; 164.32 (3) create flexible school-based organizational structures; 164.33 and 164.34 (4) improve student achievement. 164.35 Sec. 5. Minnesota Statutes 1996, section 121.602, 164.36 subdivision 2, is amended to read: 165.1 Subd. 2. [ADVISORY TASK FORCE; PROGRAM IMPLEMENTATION.] 165.2 The commissioner of children, families, and learning shall 165.3 develop and maintain a program of educational effectiveness and 165.4 results-oriented instructioneducation. The commissioner may 165.5 appoint an advisory task force to assist the department of 165.6 children, families, and learning in developing an implementation 165.7 program for providing staff development to school district staff 165.8 in educational effectiveness. The program shall be based on 165.9 established principles of instructional design and the essential 165.10 elements of effective instruction as determined by educational 165.11 research. The program shall take into account the diverse needs 165.12 of the school districts due to such factors as district size and 165.13 location. 165.14 Sec. 6. Minnesota Statutes 1996, section 121.602, 165.15 subdivision 4, is amended to read: 165.16 Subd. 4. [EDUCATIONAL EFFECTIVENESS STAFF DEVELOPMENT.] 165.17 The department of children, families, and learning shall provide 165.18 assistance to the school districts in implementing an 165.19 educational effectiveness program. In selecting an agency to165.20 provide assistance to the school districts, the department shall165.21 consider such factors as support of the proposal by the165.22 participating school districts and the extent to which the165.23 proposal provides for participation by school district staff.165.24 The department shall evaluate the performance of the service165.25 providers.The staff development shall be facilitated by 165.26 building level decision-making teams. The staff development 165.27 shall include clarification of individual school missions, 165.28 goals, expectations, enhancement of collaborative planning and 165.29 collegial relationships among the building staff, improvement of 165.30 curriculum, assessment, instructional and organizational skills, 165.31 improvement of financial and management skills, and planning of 165.32 other staff development programs. 165.33 Sec. 7. Minnesota Statutes 1996, section 123.35, 165.34 subdivision 8, is amended to read: 165.35 Subd. 8. The board may establish and maintain public 165.36 evening schools and adult and continuing education programs and 166.1 such evening schools and adult and continuing education programs 166.2 when so maintained shall be available to all persons over 16 166.3 years of age through the 1999-2000 school year and over 18 years166.4 of age beginning with the 2000-2001 school yearwho, from any 166.5 cause, are unable to attend the full-time elementary or 166.6 secondary schools of such district. 166.7 Sec. 8. Minnesota Statutes 1996, section 123.70, 166.8 subdivision 5, is amended to read: 166.9 Subd. 5. If a person transfers from one elementary or 166.10 secondary school to another, the person shall be allowedschool 166.11 board of a public school district or the administrator of a 166.12 nonpublic school may allow the person up to a maximum of 30 days 166.13 to submit one or more of the statements as specified in 166.14 subdivision 1 or 3, during which time the person may enroll in 166.15 and attend the school. If a person enrolls in a child care 166.16 facility in which at least 75 percent of children in the 166.17 facility participate on a one-time only or occasional basis to a 166.18 maximum of 45 hours per child, per month, or is placed in a 166.19 facility by a crisis nursery, the person shall be exempt from 166.20 all requirements of this section for up to five consecutive 166.21 days, starting from the first day of attendance. 166.22 Sec. 9. Minnesota Statutes 1996, section 123.70, 166.23 subdivision 7, is amended to read: 166.24 Subd. 7. Each school or child care facility shall maintain 166.25 on file immunization records for all persons in attendance that 166.26 contain the information required by subdivisions 1, 2, and 3. 166.27 The school shall maintain the records for at least five years 166.28 after the person attains the age of majority. The department of 166.29 health and the board of health, as defined in section 145A.02, 166.30 subdivision 2, in whose jurisdiction the school or child care 166.31 facility is located, shall have access to the files maintained 166.32 pursuant to this subdivision. When a person transfers to 166.33 another elementary or secondary school or child care facility, 166.34 the administrator or other person having general control and 166.35 supervision of the school or child care facility shall assist 166.36 the person's parent or guardian in the transfer of the 167.1 immunization file to the person's new school or child care 167.2 facility within 30 days of the transfer. Upon the request of a 167.3 public or private post-secondary educational institution, as 167.4 defined in section 135A.14, the administrator or other person 167.5 having general control or supervision of a school shall assist 167.6 in the transfer of a student's immunization file to the 167.7 post-secondary institution. 167.8 Sec. 10. Minnesota Statutes 1996, section 123.70, 167.9 subdivision 10, is amended to read: 167.10 Subd. 10. A statement required to be submitted under 167.11 subdivisions 1, 2, and 4 to document evidence of immunization 167.12 shall include month, day, and year for immunizations 167.13 administered after January 1, 1990. 167.14 (a) For persons enrolled in grades 7 and 12 during the 167.15 1996-1997 school term, the statement must indicate that the 167.16 person has received a dose of tetanus and diphtheria toxoid no 167.17 earlier than 11 years of age. 167.18 (b) Except as specified in paragraph (e), for persons 167.19 enrolled in grades 7, 8, and 12 during the 1997-1998 school 167.20 term, the statement must indicate that the person has received a 167.21 dose of tetanus and diphtheria toxoid no earlier than 11 years 167.22 of age. 167.23 (c) Except as specified in paragraph (e), for persons 167.24 enrolled in grades 7 , 8, 9, andthrough 12 during the 1998-1999 167.25 school term and for each year thereafter, the statement must 167.26 indicate that the person has received a dose of tetanus and 167.27 diphtheria toxoid no earlier than 11 years of age. 167.28 (d) for persons enrolled in grades 7, 8, 9, 10, and 12167.29 during the 1999-2000 school term, the statement must indicate167.30 that the person has received a dose of tetanus and diphtheria167.31 toxoid no earlier than 11 years of age.167.32 (e) for persons enrolled in grades 7 through 12 during the167.33 2000-2001 school term and for each year thereafter, the167.34 statement must indicate that the person has received a dose of167.35 tetanus and diphtheria toxoid no earlier than 11 years of age.167.36 (f)(d) For persons enrolled in grades 7 through 12 during 168.1 the 1996-1997 school year and for each year thereafter, the 168.2 statement must indicate that the person has received at least 168.3 two doses of vaccine against measles, mumps, and rubella, given 168.4 alone or separately and given not less than one month apart. 168.5 (e) A person who has received at least three doses of 168.6 tetanus and diphtheria toxoids, with the most recent dose given 168.7 after age six and before age 11, is not required to have 168.8 additional immunization against diphtheria and tetanus until ten 168.9 years have elapsed from the person's most recent dose of tetanus 168.10 and diphtheria toxoid. 168.11 Sec. 11. Minnesota Statutes 1996, section 124.26, 168.12 subdivision 1b, is amended to read: 168.13 Subd. 1b. [PROGRAM REQUIREMENTS.] An adult basic education 168.14 program is a day or evening program offered by a district that 168.15 is for people over 16 years of age through the 1999-2000 school168.16 year and over 18 years of age beginning with the 2000-2001168.17 school yearwho do not attend an elementary or secondary 168.18 school. The program offers academic instruction necessary to 168.19 earn a high school diploma or equivalency certificate. Tuition 168.20 and fees may not be charged to a learner for instruction paid 168.21 under this section, except for a security deposit to assure 168.22 return of materials, supplies, and equipment. 168.23 Sec. 12. Minnesota Statutes 1996, section 124.276, is 168.24 amended by adding a subdivision to read: 168.25 Subd. 2a. [AID.] A district with an approved plan shall 168.26 receive $30 per pupil served at the school site with the family 168.27 connections program. The district must provide a match of $15 168.28 per pupil served at the school site with the family connections 168.29 program. 168.30 Sec. 13. [124.6475] [SUMMER FOOD SERVICE REPLACEMENT AID.] 168.31 States funds are available to compensate 168.32 department-approved summer food program sponsors for reduced 168.33 federal operating reimbursement rates under Public Law Number 168.34 104-193, the federal summer food service program. A sponsor is 168.35 eligible for summer food service replacement aid equal to the 168.36 sum of the following amounts: 169.1 (1) for breakfast service, subtract the current year 169.2 maximum reimbursement rate from the 1996 maximum reimbursement 169.3 rate and multiply the result by the number of breakfasts the 169.4 district served during the current school year; 169.5 (2) for lunch or supper service, subtract the current year 169.6 maximum reimbursement rate from the 1996 maximum reimbursement 169.7 rate and multiply the result by the number of lunches and 169.8 suppers the district served during the current school year; and 169.9 (3) for supplement service, subtract the current year 169.10 maximum reimbursement rate from the 1996 maximum reimbursement 169.11 rate and multiply the result by the number of supplement meals 169.12 the district served during the current school year. 169.13 Sec. 14. Minnesota Statutes 1996, section 124C.46, 169.14 subdivision 2, is amended to read: 169.15 Subd. 2. [PEOPLE TO BE SERVED.] A center shall provide 169.16 programs for secondary pupils and adults , giving priority to169.17 serving persons between 16 and 21 years of age. Secondary169.18 pupils to be served are those who are chemically dependent, not169.19 likely to graduate from high school, need assistance in169.20 vocational and basic skills, can benefit from employment169.21 experiences, and need assistance in transition from school to169.22 employment. Adults to be served are dislocated homemakers and169.23 workers and others who need basic educational and social169.24 services. In addition to offering programs, the center shall169.25 coordinate the use of other available educational services,169.26 social services, and post-secondary institutions in the169.27 community. TheA center may also provide programs , including169.28 work-based, service-learning, and applied learning opportunities169.29 developed in collaboration with a local education and employment169.30 transitions partnership,and services for elementary and 169.31 secondary pupils who are not attending the center to assist them 169.32 in completing highbeing successful in school. Pupils eligible 169.33 to be served are those age five to adults 21 and older who 169.34 qualify under the graduation incentives program in section 169.35 126.22, subdivision 2. 169.36 Sec. 15. Minnesota Statutes 1996, section 126.22, 170.1 subdivision 2, is amended to read: 170.2 Subd. 2. [ELIGIBLE PUPILS.] The following pupils are 170.3 eligible to participate in the education optionsgraduation 170.4 incentives program: 170.5 (a) any pupil under the age of 21 who: 170.6 (1) performs substantially below the performance level for 170.7 pupils of the same age in a locally determined achievement test; 170.8 or 170.9 (2) is at least one year behind in satisfactorily 170.10 completing coursework or obtaining credits for graduation; or 170.11 (3) is pregnant or is a parent; or 170.12 (4) has been assessed as chemically dependent; or 170.13 (5) has been excluded or expelled according to sections 170.14 127.26 to 127.39; or 170.15 (6) has been referred by a school district for enrollment 170.16 in an eligible program or a program pursuant to section 126.23; 170.17 or 170.18 (7) is a victim of physical or sexual abuse; or 170.19 (8) has experienced mental health problems; or 170.20 (9) has experienced homelessness sometime within six months 170.21 before requesting a transfer to an eligible program; or 170.22 (10) speaks English as a second language or has limited 170.23 English proficiency; or 170.24 (11) has withdrawn from school or has been chronically 170.25 truant; or 170.26 (b) any person who is at least 21 years of age and who: 170.27 (1) has received fewer than 14 years of public or nonpublic 170.28 education, beginning at age 5; 170.29 (2) has not completed the requirements for a high school 170.30 diploma; and 170.31 (3) at the time of application, (i) is eligible for 170.32 reemployment insurance benefits or has exhausted the benefits, 170.33 (ii) is eligible for, or is receiving income maintenance and 170.34 support services, as defined in section 268.0111, subdivision 5, 170.35 or (iii) is eligible for services under the displaced homemaker 170.36 program, state wage-subsidy program, or any programs under the 171.1 federal Jobs Training Partnership Act or its successor. 171.2 Sec. 16. Minnesota Statutes 1996, section 144.29, is 171.3 amended to read: 171.4 144.29 [HEALTH RECORDS; CHILDREN OF SCHOOL AGE.] 171.5 It shall be the duty of every school nurse, school 171.6 physician, school attendance officer, superintendent of schools, 171.7 principal, teacher, and of the persons charged with the duty of 171.8 compiling and keeping the school census records, to cause a 171.9 permanent publichealth record to be kept for each child of 171.10 school age. Such record shall be kept in such form that it may 171.11 be transferred with the child to any school which the child 171.12 shall attend within the state and transferred to the171.13 commissioner when the child ceases to attend school. It shall 171.14 contain a record of such health matters as shall be prescribed171.15 by the commissioner, and of all mental and physical defects and171.16 handicaps which might permanently cripple or handicap the171.17 childstudent health data as defined in section 13.32, 171.18 subdivision 2, paragraph (a), and shall be classified as private 171.19 data as defined in section 13.32, subdivision 3. Nothing in 171.20 sections 144.29 to 144.32 shall be construed to require any 171.21 child whose parent or guardian objects in writing thereto to 171.22 undergo a physical or medical examination or treatment. A copy 171.23 shall be forwarded to the proper department of any state to 171.24 which the child shall remove. Each district shall assign a 171.25 teacher, school nurse, or other professional person to review, 171.26 at the beginning of each school year, the health record of all 171.27 pupils under the assignee's direction. Growth, results of 171.28 vision and hearing screening, and findings obtained from health 171.29 assessments must be entered periodically on the pupil's health 171.30 record. 171.31 Sec. 17. Minnesota Statutes 1996, section 260.185, 171.32 subdivision 1, is amended to read: 171.33 Subdivision 1. [COURT ORDER, FINDINGS, REMEDIES, 171.34 TREATMENT.] If the court finds that the child is delinquent, it 171.35 shall enter an order making any of the following dispositions of 171.36 the case which are deemed necessary to the rehabilitation of the 172.1 child: 172.2 (a) Counsel the child or the parents, guardian, or 172.3 custodian; 172.4 (b) Place the child under the supervision of a probation 172.5 officer or other suitable person in the child's own home under 172.6 conditions prescribed by the court including reasonable rules 172.7 for the child's conduct and the conduct of the child's parents, 172.8 guardian, or custodian, designed for the physical, mental, and 172.9 moral well-being and behavior of the child, or with the consent 172.10 of the commissioner of corrections, in a group foster care 172.11 facility which is under the management and supervision of said 172.12 commissioner; 172.13 (c) Subject to the supervision of the court, transfer legal 172.14 custody of the child to one of the following: 172.15 (1) a child-placing agency; or 172.16 (2) the local social services agency; or 172.17 (3) a reputable individual of good moral character. No 172.18 person may receive custody of two or more unrelated children 172.19 unless licensed as a residential facility pursuant to sections 172.20 245A.01 to 245A.16; or 172.21 (4) a county home school, if the county maintains a home 172.22 school or enters into an agreement with a county home school; or 172.23 (5) a county probation officer for placement in a group 172.24 foster home established under the direction of the juvenile 172.25 court and licensed pursuant to section 241.021; 172.26 (d) Transfer legal custody by commitment to the 172.27 commissioner of corrections; 172.28 (e) If the child is found to have violated a state or local 172.29 law or ordinance which has resulted in damage to the person or 172.30 property of another, the court may order the child to make 172.31 reasonable restitution for such damage; 172.32 (f) Require the child to pay a fine of up to $700; the 172.33 court shall order payment of the fine in accordance with a time 172.34 payment schedule which shall not impose an undue financial 172.35 hardship on the child; 172.36 (g) If the child is in need of special treatment and care 173.1 for reasons of physical or mental health, the court may order 173.2 the child's parent, guardian, or custodian to provide it. If 173.3 the parent, guardian, or custodian fails to provide this 173.4 treatment or care, the court may order it provided; 173.5 (h) If the court believes that it is in the best interests 173.6 of the child and of public safety that the driver's license of 173.7 the child be canceled until the child's 18th birthday, the court 173.8 may recommend to the commissioner of public safety the 173.9 cancellation of the child's license for any period up to the 173.10 child's 18th birthday, and the commissioner is hereby authorized 173.11 to cancel such license without a hearing. At any time before 173.12 the termination of the period of cancellation, the court may, 173.13 for good cause, recommend to the commissioner of public safety 173.14 that the child be authorized to apply for a new license, and the 173.15 commissioner may so authorize. 173.16 (i) If the court believes that it is in the best interest 173.17 of the child and of public safety that the child is enrolled in 173.18 school, the court may require the child to remain enrolled in a 173.19 public school until the child reaches the age of 18 or completes 173.20 all requirements needed to graduate from high school. Any child 173.21 enrolled in a public school under this paragraph is subject to 173.22 the provisions of the Pupil Fair Dismissal Act in chapter 127. 173.23 If the child is petitioned and found by the court to have 173.24 committed a controlled substance offense under sections 152.021 173.25 to 152.027, the court shall determine whether the child 173.26 unlawfully possessed or sold the controlled substance while 173.27 driving a motor vehicle. If so, the court shall notify the 173.28 commissioner of public safety of its determination and order the 173.29 commissioner to revoke the child's driver's license for the 173.30 applicable time period specified in section 152.0271. If the 173.31 child does not have a driver's license or if the child's 173.32 driver's license is suspended or revoked at the time of the 173.33 delinquency finding, the commissioner shall, upon the child's 173.34 application for driver's license issuance or reinstatement, 173.35 delay the issuance or reinstatement of the child's driver's 173.36 license for the applicable time period specified in section 174.1 152.0271. Upon receipt of the court's order, the commissioner 174.2 is authorized to take the licensing action without a hearing. 174.3 If the child is petitioned and found by the court to have 174.4 committed or attempted to commit an act in violation of section 174.5 609.342; 609.343; 609.344; 609.345; 609.3451; 609.746, 174.6 subdivision 1; 609.79; or 617.23, or another offense arising out 174.7 of a delinquency petition based on one or more of those 174.8 sections, the court shall order an independent professional 174.9 assessment of the child's need for sex offender treatment. An 174.10 assessor providing an assessment for the court must be 174.11 experienced in the evaluation and treatment of juvenile sex 174.12 offenders. If the assessment indicates that the child is in need 174.13 of and amenable to sex offender treatment, the court shall 174.14 include in its disposition order a requirement that the child 174.15 undergo treatment. Notwithstanding section 13.42, 13.85, 174.16 144.335, 260.161, or 626.556, the assessor has access to the 174.17 following private or confidential data on the child if access is 174.18 relevant and necessary for the assessment: 174.19 (1) medical data under section 13.42; 174.20 (2) corrections and detention data under section 13.85; 174.21 (3) health records under section 144.335; 174.22 (4) juvenile court records under section 260.161; and 174.23 (5) local welfare agency records under section 626.556. 174.24 Data disclosed under this paragraph may be used only for 174.25 purposes of the assessment and may not be further disclosed to 174.26 any other person, except as authorized by law. 174.27 If the child is found delinquent due to the commission of 174.28 an offense that would be a felony if committed by an adult, the 174.29 court shall make a specific finding on the record regarding the 174.30 juvenile's mental health and chemical dependency treatment needs. 174.31 Any order for a disposition authorized under this section 174.32 shall contain written findings of fact to support the 174.33 disposition ordered, and shall also set forth in writing the 174.34 following information: 174.35 (a) why the best interests of the child are served by the 174.36 disposition ordered; and 175.1 (b) what alternative dispositions were considered by the 175.2 court and why such dispositions were not appropriate in the 175.3 instant case. 175.4 Sec. 18. [REGIONAL TRAINING SITES FOR HIV EDUCATION IN 175.5 SCHOOLS.] 175.6 The commissioner of children, families, and learning shall 175.7 establish four regional training centers in partnership with 175.8 school districts outside of the cities of Minneapolis and St. 175.9 Paul to implement comprehensive curriculum and program to 175.10 prevent and reduce the risk of HIV/AIDS as required under 175.11 Minnesota Statutes, section 121.203. The commissioner shall 175.12 provide technical and financial assistance to each school 175.13 district to identify policy, curriculum, and service gaps, to 175.14 purchase curriculum and materials and to provide training or 175.15 services to fill these gaps, to identify opportunities to 175.16 coordinate HIV education with other special curriculum 175.17 offerings, and to assess the effectiveness of curriculum and 175.18 services. Each regional training center will provide programs 175.19 and services to nearby school districts to meet the requirements 175.20 of Minnesota Statutes, section 121.203. The commissioner and 175.21 each school district shall work with a community advisory 175.22 committee to establish and review the operation of each training 175.23 center. 175.24 Sec. 19. [TARGETED BREAKFAST GRANTS.] 175.25 Subdivision 1. [ESTABLISHMENT.] A grant program is 175.26 established to further explore the policy of providing 175.27 nutritious breakfasts to public elementary school children, 175.28 without regard to whether the children are eligible to receive 175.29 free or reduced price meals, so that they can learn effectively. 175.30 Subd. 2. [ELIGIBILITY.] An applicant for a grant must be 175.31 an elementary school that participates in the federal school 175.32 breakfast and lunch programs. For a school to receive a grant, 175.33 at least 33 percent of the lunches the school served to children 175.34 during the preceding school year must have been provided free or 175.35 at a reduced price. 175.36 Subd. 3. [APPLICATION PROCESS.] To obtain a grant to 176.1 receive reimbursement for providing breakfasts to all children, 176.2 whether or not the children are from low-income families and 176.3 eligible to receive free or reduced price meals, a public 176.4 elementary school must submit an application to the commissioner 176.5 of children, families, and learning in the form and manner the 176.6 commissioner prescribes. The application must describe how the 176.7 applicant will encourage all children in the school to 176.8 participate in the breakfast program. The applicant also must 176.9 demonstrate to the commissioner that the applicant will receive 176.10 a $1 local match of funding or in-kind contributions for every 176.11 $3 of state funding the applicant receives. The commissioner 176.12 may require additional information from the applicant. 176.13 Subd. 4. [GRANT AWARDS.] The commissioner shall award 176.14 grants to the four grant recipients under Laws 1994, chapter 176.15 647, article 8, section 35, and then on a first-come, 176.16 first-served basis to all other schools that meet the 176.17 requirements of subdivisions 2 and 3 until funding under this 176.18 section is expended. The commissioner shall determine the 176.19 amount of the grant using average statewide statistics and 176.20 individual school statistics adjusted for other state and 176.21 federal reimbursements. Grant recipients must use the proceeds 176.22 to provide breakfasts to school children every day school is in 176.23 session. 176.24 Sec. 20. [APPROPRIATIONS.] 176.25 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 176.26 LEARNING.] The sums indicated in this section are appropriated 176.27 from the general fund to the department of children, families, 176.28 and learning for the fiscal years designated. 176.29 Subd. 2. [ABATEMENT AID.] For abatement aid according to 176.30 Minnesota Statutes, section 124.214: 176.31 $13,661,000 ..... 1998 176.32 $13,612,000 ..... 1999 176.33 The 1998 appropriation includes $684,000 for 1997 and 176.34 $12,977,000 for 1998. 176.35 The 1999 appropriation includes $1,441,000 for 1998 and 176.36 $12,171,000 for 1999. 177.1 Subd. 3. [NONPUBLIC PUPIL AID.] For nonpublic pupil 177.2 education aid according to Minnesota Statutes, sections 123.79 177.3 and 123.931 to 123.947: 177.4 $9,430,000 ..... 1998 177.5 $9,688,000 ..... 1999 177.6 The 1998 appropriation includes $900,000 for 1997 and 177.7 $8,530,000 for 1998. 177.8 The 1999 appropriation includes $947,000 for 1998 and 177.9 $8,741,000 for 1999. 177.10 Subd. 4. [SCHOOL LUNCH AND FOOD STORAGE AID.] (a) For 177.11 school lunch aid according to Minnesota Statutes, section 177.12 124.646, and Code of Federal Regulations, title 7, section 177.13 210.17, and for food storage and transportation costs for United 177.14 States Department of Agriculture donated commodities; and for a 177.15 temporary transfer to the commodity processing revolving fund to 177.16 provide cash flow to permit schools and other recipients of 177.17 donated commodities to take advantage of volume processing rates 177.18 and for school milk aid according to Minnesota Statutes, section 177.19 124.648: 177.20 $7,254,000 ..... 1998 177.21 $7,254,000 ..... 1999 177.22 (b) Any unexpended balance remaining from the 177.23 appropriations in this subdivision shall be prorated among 177.24 participating schools based on the number of free, reduced, and 177.25 fully paid federally reimbursable student lunches served during 177.26 that school year. 177.27 (c) If the appropriation amount attributable to either year 177.28 is insufficient, the rate of payment for each fully paid student 177.29 lunch shall be reduced and the aid for that year shall be 177.30 prorated among participating schools so as not to exceed the 177.31 total authorized appropriation for that year. 177.32 (d) Any temporary transfer processed in accordance with 177.33 this subdivision to the commodity processing fund will be 177.34 returned by June 30 in each year so that school lunch aid and 177.35 food storage costs can be fully paid as scheduled. 177.36 (e) Not more than $800,000 of the amount appropriated each 178.1 year may be used for school milk aid. 178.2 (f) The commissioner may reduce other future aid and grant 178.3 payments due to school districts and other organizations for the 178.4 costs of processing and storage of commodities used by the 178.5 district or organization. 178.6 Subd. 5. [SUMMER FOOD SERVICE.] For summer food service: 178.7 $15,000 ..... 1998 178.8 $15,000 ..... 1999 178.9 Subd. 6. [SCHOOL BREAKFAST.] To operate the school 178.10 breakfast program according to Minnesota Statutes, sections 178.11 124.6469 and 124.6472: 178.12 $456,000 ..... 1998 178.13 $456,000 ..... 1999 178.14 If the appropriation amount attributable to either year is 178.15 insufficient, the rate of payment for each fully paid student 178.16 breakfast shall be reduced and the aid for that year shall be 178.17 prorated among participating schools so as not to exceed the 178.18 total authorized appropriation for that year. Any unexpected 178.19 balance remaining shall be used to subsidize the payments made 178.20 for school lunch aid per Minnesota Statutes, section 124.646. 178.21 Up to one percent of the program funding can be used by the 178.22 department of children, families, and learning for technical and 178.23 administrative assistance. 178.24 Subd. 7. [SCHOOL BREAKFAST OUTREACH.] To initiate school 178.25 breakfast programs under Minnesota Statutes, section 124.6469, 178.26 at school sites not currently providing a school breakfast 178.27 program or at schools that initiated a school breakfast program 178.28 during the 1996-1997 school year: 178.29 $15,000 ..... 1998 178.30 $15,000 ..... 1999 178.31 Subd. 8. [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer 178.32 food service replacement aid under Minnesota Statutes, section 178.33 124.6475: 178.34 $150,000 ..... 1998 178.35 $150,000 ..... 1999 178.36 Subd. 9. [TARGETED BREAKFAST GRANTS.] For targeted 179.1 breakfast grants: 179.2 $1,037,000 ..... 1998 179.3 This appropriation is available until June 30, 1999. 179.4 Subd. 10. [FAMILY CONNECTIONS AID.] For family connections 179.5 aid according to Minnesota Statutes, section 124.276: 179.6 $250,000 ..... 1998 179.7 $250,000 ..... 1999 179.8 Any balance in the first year does not cancel but is 179.9 available in the second year. 179.10 Subd. 11. [NETT LAKE COMMUNITY CENTER.] For a grant to 179.11 independent school district No. 707, Nett Lake, for maintenance 179.12 replacement funds to cover delayed lease payments for the 179.13 collaborative community center: 179.14 $70,000 ..... 1998 179.15 Subd. 12. [HIV EDUCATION TRAINING SITES.] For regional 179.16 training sites for HIV education in schools: 179.17 $200,000 ..... 1998 179.18 This appropriation is contingent on a matching grant of 179.19 $100,000 in federal funds. 179.20 This appropriation is available until June 30, 1999. 179.21 Subd. 13. [WILLMAR.] For a grant to independent school 179.22 district No. 347, Willmar: 179.23 $200,000 ..... 1998 179.24 This appropriation shall be used to improve community 179.25 understanding of the cultures within the community, improve 179.26 communication between the district and the Latino community, 179.27 improve parental involvement in the school, to use mediation to 179.28 resolve conflict in the school and community, and to assist 179.29 surrounding communities and districts in achieving these goals. 179.30 This appropriation is available only if the federal lawsuit 179.31 against the district is dismissed for settlement. 179.32 This appropriation is available until June 30, 1999. 179.33 Subd. 14. [PSEO REPLACEMENT AID.] For PSEO replacement aid: 179.34 $12,000 ..... 1998 179.35 The 1998 appropriation includes $12,000 for 1997 and $0 for 179.36 1998. 180.1 Sec. 21. [REPEALER.] 180.2 Minnesota Statutes 1996, sections 121.602, subdivisions 3 180.3 and 5; 124.177; and 124.276, subdivision 2, are repealed. 180.4 Sec. 22. [EFFECTIVE DATE.] 180.5 (a) Section 3 is effective for the 1998-1999 school year. 180.6 (b) If this act is enacted on or after July 1, 1997, all 180.7 sections in this article except for that section listed in 180.8 paragraph (a) are effective the day following final enactment. 180.9 ARTICLE 7 180.10 EDUCATION POLICY ISSUES 180.11 Section 1. Minnesota Statutes 1996, section 12.21, 180.12 subdivision 3, is amended to read: 180.13 Subd. 3. [SPECIFIC AUTHORITY.] In performing duties under 180.14 this chapter and to effect its policy and purpose, the governor 180.15 may: 180.16 (1) make, amend, and rescind the necessary orders and rules 180.17 to carry out the provisions of this chapter and section 216C.15 180.18 within the limits of the authority conferred by this section, 180.19 with due consideration of the plans of the federal government 180.20 and without complying with sections 14.001 to 14.69, but no 180.21 order or rule has the effect of law except as provided by 180.22 section 12.32; 180.23 (2) ensure that a comprehensive emergency operations plan 180.24 and emergency management program for this state are developed 180.25 and maintained, and are integrated into and coordinated with the 180.26 emergency plans of the federal government and of other states to 180.27 the fullest possible extent; 180.28 (3) in accordance with the emergency operations plan and 180.29 the emergency management program of this state, procure supplies 180.30 and equipment, institute training programs and public 180.31 information programs, and take all other preparatory steps, 180.32 including the partial or full activation of emergency management 180.33 organizations in advance of actual disaster to ensure the 180.34 furnishing of adequately trained and equipped forces of 180.35 emergency management personnel in time of need; 180.36 (4) make studies and surveys of the industries, resources, 181.1 and facilities in this state as may be necessary to ascertain 181.2 the capabilities of the state for emergency management and to 181.3 plan for the most efficient emergency use of those industries, 181.4 resources, and facilities; 181.5 (5) on behalf of this state, enter into mutual aid 181.6 arrangements or cooperative agreements with other states and 181.7 with Canadian provinces, and coordinate mutual aid plans between 181.8 political subdivisions of this state; 181.9 (6) delegate administrative authority vested in the 181.10 governor under this chapter, except the power to make rules, and 181.11 provide for the subdelegation of that authority; 181.12 (7) cooperate with the president and the heads of the armed 181.13 forces, the emergency management agency of the United States and 181.14 other appropriate federal officers and agencies, and with the 181.15 officers and agencies of other states in matters pertaining to 181.16 the emergency management of the state and nation, including the 181.17 direction or control of: 181.18 (i) emergency preparedness drills and exercises; 181.19 (ii) warnings and signals for drills or actual emergencies 181.20 and the mechanical devices to be used in connection with them; 181.21 (iii) shutting off water mains, gas mains, electric power 181.22 connections and the suspension of all other utility services; 181.23 (iv) the conduct of persons in the state and the movement 181.24 and cessation of movement of pedestrians and vehicular traffic 181.25 during, prior, and subsequent to drills or actual emergencies; 181.26 (v) public meetings or gatherings; and 181.27 (vi) the evacuation, reception, and sheltering of persons; 181.28 (8) contribute to a political subdivision, within the 181.29 limits of the appropriation for that purpose, not more than 25 181.30 percent of the cost of acquiring organizational equipment that 181.31 meets standards established by the governor; 181.32 (9) formulate and execute, with the approval of the 181.33 executive council, plans and rules for the control of traffic in 181.34 order to provide for the rapid and safe movement over public 181.35 highways and streets of troops, vehicles of a military nature, 181.36 materials for national defense and war or for use in any war 182.1 industry, for the conservation of critical materials or for 182.2 emergency management purposes, and coordinate the activities of 182.3 the departments or agencies of the state and its political 182.4 subdivisions concerned directly or indirectly with public 182.5 highways and streets, in a manner that will best effectuate 182.6 those plans; 182.7 (10) alter or adjust by executive order, without complying 182.8 with sections 14.01 to 14.69, the working hours, work days and 182.9 work week of, and annual and sick leave provisions and payroll 182.10 laws regarding all state employees in the executive branch as 182.11 the governor deems necessary to minimize the impact of the 182.12 disaster or emergency, conforming the alterations or adjustments 182.13 to existing state laws, rules, and collective bargaining 182.14 agreements to the extent practicable; 182.15 (11) authorize the commissioner of children, families, and 182.16 learning to alter school schedules, curtail school activities, 182.17 or order schools closed without affecting state aid to schools, 182.18 as defined in section 120.05, and including charter schools 182.19 under section 120.064, and elementary schools enrolling 182.20 prekindergarten pupils in district programs. 182.21 Sec. 2. Minnesota Statutes 1996, section 120.0111, is 182.22 amended to read: 182.23 120.0111 [MISSION STATEMENT.] 182.24 The mission of public education in Minnesota, a system for 182.25 lifelong learning, is to ensure individual academic achievement, 182.26 an informed citizenry, and a highly productive work force. This 182.27 system focuses on the learner, promotes and values diversity, 182.28 provides participatory decision-making, ensures accountability, 182.29 models democratic principles, creates and sustains a climate for 182.30 change, provides personalized learning environments, encourages 182.31 learners to reach their maximum potential, and integrates and 182.32 coordinates human services for learners. The public schools of 182.33 this state shall serve the needs of the students by cooperating 182.34 with the students' parents and legal guardians to develop the 182.35 students' intellectual capabilities and life-work skills in a 182.36 safe and positive environment. It is part of the department's 183.1 mission that within the department's resources the commissioner 183.2 shall endeavor to: 183.3 (1) prevent the waste or unnecessary spending of public 183.4 money; 183.5 (2) use innovative fiscal and human resource practices to 183.6 manage the state's resources and operate the department as 183.7 efficiently as possible; 183.8 (3) coordinate the department's activities wherever 183.9 appropriate with the activities of other governmental agencies; 183.10 (4) use technology where appropriate to increase agency 183.11 productivity, improve customer service, increase public access 183.12 to information about government, and increase public 183.13 participation in the business of government; 183.14 (5) utilize constructive and cooperative labor-management 183.15 practices to the extent otherwise required by chapters 43A and 183.16 179A; 183.17 (6) include specific objectives in the performance report 183.18 required under section 15.91 to increase the efficiency of 183.19 agency operations, when appropriate; and 183.20 (7) recommend to the legislature, in the performance report 183.21 of the department required under section 15.91, appropriate 183.22 changes in law necessary to carry out the mission of the 183.23 department. 183.24 Sec. 3. Minnesota Statutes 1996, section 120.101, 183.25 subdivision 5c, is amended to read: 183.26 Subd. 5c. [EDUCATION RECORDS.] (a) A school district from 183.27 which a student is transferring must transmit the student's 183.28 educational records, within ten business days of a request, to 183.29 the school district in which the student is enrolling. School 183.30 districts must make reasonable efforts to determine the school 183.31 district in which a transferring student is next enrolling in 183.32 order to comply with this subdivision. 183.33 (b) A school district that transmits a student's 183.34 educational records to another school district or other 183.35 educational entity to which the student is transferring must 183.36 include in the transmitted records information about 184.1 disciplinary action taken as a result of any incident in which 184.2 the student possessed or used a dangerous weapon. 184.3 Sec. 4. Minnesota Statutes 1996, section 123.35, is 184.4 amended by adding a subdivision to read: 184.5 Subd. 19c. [JOINTLY OWNED FACILITIES.] Notwithstanding 184.6 section 123.35, subdivision 19a, if a school district and a city 184.7 jointly own a building or site, the district and the city may 184.8 enter into an agreement that extends beyond the end of the 184.9 fiscal year to pay operating costs for that building or site. 184.10 Sec. 5. Minnesota Statutes 1996, section 123.3514, 184.11 subdivision 4c, is amended to read: 184.12 Subd. 4c. [LIMIT ON PARTICIPATION.] A pupil who first 184.13 enrolls in grade 11 may not enroll in post-secondary courses 184.14 under this section for secondary credit for more than the 184.15 equivalent of two academic years. A pupil who first enrolls in 184.16 grade 12 may not enroll in post-secondary courses under this 184.17 section for secondary credit for more than the equivalent of one 184.18 academic year. If a pupil in grade 11 or 12 first enrolls in a 184.19 post-secondary course for secondary credit during the school 184.20 year, the time of participation shall be reduced 184.21 proportionately. If a pupil is in a learning year or other 184.22 year-round program and begins each grade in the summer session, 184.23 summer sessions shall not be counted against the time of 184.24 participation. A pupil who has graduated from high school 184.25 cannot participate in a program under this section. A pupil who 184.26 has completed course requirements for graduation but who has not 184.27 received a diploma may participate in the program under this 184.28 section. 184.29 Sec. 6. Minnesota Statutes 1996, section 123.3514, 184.30 subdivision 8, is amended to read: 184.31 Subd. 8. [TRANSPORTATION.] A parent or guardian of a pupil 184.32 enrolled in a course for secondary credit may apply to the 184.33 pupil's district of residence for reimbursement for transporting 184.34 the pupil between the secondary school in which the pupil is 184.35 enrolled or the pupil's home and the post-secondary institution 184.36 that the pupil attends. The commissioner shall establish185.1 guidelines for providing state aid to districts toThe state 185.2 shall provide state aid to a district in an amount sufficient to 185.3 reimburse the parent or guardian for the necessary 185.4 transportation costs , which shall be based on financial185.5 needwhen the family's or guardian's income is at or below the 185.6 poverty level, as determined by the federal government. The 185.7 reimbursement may not exceedshall be the pupil's actual cost of 185.8 transportation or 15 cents per mile traveled, whichever is 185.9 less. Reimbursement may not be paid for more than 250 miles per 185.10 week. However, if the nearest post-secondary institution is 185.11 more than 25 miles from the pupil's resident secondary school, 185.12 the weekly reimbursement may not exceed the reimbursement rate 185.13 per mile times the actual distance between the secondary school 185.14 or the pupil's home and the nearest post-secondary institution 185.15 times ten. The state shall pay aid to the district according to 185.16 the guidelines established underthis subdivision. Chapter 14185.17 does not apply to the guidelines.185.18 Sec. 7. Minnesota Statutes 1996, section 124C.498, 185.19 subdivision 2, is amended to read: 185.20 Subd. 2. [APPROVAL AUTHORITY; APPLICATION FORMS.] To the 185.21 extent money is available, the commissioner of children, 185.22 families, and learning may approve projects from applications 185.23 submitted under this section. The grant money must be used only 185.24 to design, acquire, construct, remodel, improve, furnish, or 185.25 equip the building or site of a magnet school facility according 185.26 to contracts entered into within 1524 months after the date on 185.27 which a grant is awarded. 185.28 Sec. 8. Minnesota Statutes 1996, section 125.12, 185.29 subdivision 14, is amended to read: 185.30 Subd. 14. [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 185.31 EXPUNGEMENT.] All evaluations and files generated within a 185.32 school district relating to each individual teacher shall be 185.33 available to each individual teacher upon written request. 185.34 Effective January 1, 1976, all evaluations and files, wherever 185.35 generated, relating to each individual teacher shall be 185.36 available to each individual teacher upon written request. The 186.1 teacher shall have the right to reproduce any of the contents of 186.2 the files at the teacher's expense and to submit for inclusion 186.3 in the file written information in response to any material 186.4 contained therein. 186.5 A school district may destroy the files as provided by law 186.6 and shall expunge from the teacher's file any material found to 186.7 be false or substantiallyinaccurate through the grievance 186.8 procedure required pursuant to section 179A.20, subdivision 4; 186.9 provided, the grievance procedure promulgated by the director of 186.10 the bureau of mediation services, pursuant to section 179A.04, 186.11 subdivision 3, clause (h), shall apply to those principals and 186.12 supervisory employees not included in an appropriate unit as 186.13 defined in section 179A.03. Expungement proceedings shall be 186.14 commenced within the time period provided in the collective 186.15 bargaining agreement for the commencement of a grievance. If no 186.16 time period is provided in the bargaining agreement, the 186.17 expungement proceedings shall commence within 15 days after the 186.18 teacher has knowledge of the inclusion in the teacher's file of 186.19 the material the teacher seeks to have expunged. 186.20 Sec. 9. Minnesota Statutes 1996, section 126.77, 186.21 subdivision 1, is amended to read: 186.22 Subdivision 1. [VIOLENCE PREVENTION CURRICULUM.] (a) The 186.23 commissioner of children, families, and learning, in 186.24 consultation with the commissioners of health and human 186.25 services, state minority councils, battered women's programs, 186.26 sexual assault centers, representatives of religious 186.27 communities, and the assistant commissioner of the office of 186.28 drug policy and violence prevention, shall assist districts on 186.29 request in developing or implementing a violence prevention 186.30 program for students in kindergarten to grade 12 that can be 186.31 integrated into existing curriculum. The purpose of the program 186.32 is to help students learn how to resolve conflicts within their 186.33 families and communities in nonviolent, effective ways. 186.34 (b) Each district is encouraged to integrate into its 186.35 existing curriculum a program for violence prevention that 186.36 includes at least: 187.1 (1) a comprehensive, accurate, and age appropriate 187.2 curriculum on violence prevention, nonviolent conflict 187.3 resolution, andsexual, racial, and cultural harassment, and 187.4 student hazing that promotes equality, respect, understanding, 187.5 effective communication, individual responsibility, thoughtful 187.6 decision making, positive conflict resolution, useful coping 187.7 skills, critical thinking, listening and watching skills, and 187.8 personal safety; 187.9 (2) planning materials, guidelines, and other accurate 187.10 information on preventing physical and emotional violence, 187.11 identifying and reducing the incidence of sexual, racial, and 187.12 cultural harassment, and reducing child abuse and neglect; 187.13 (3) a special parent education component of early childhood 187.14 family education programs to prevent child abuse and neglect and 187.15 to promote positive parenting skills, giving priority to 187.16 services and outreach programs for at-risk families; 187.17 (4) involvement of parents and other community members, 187.18 including the clergy, business representatives, civic leaders, 187.19 local elected officials, law enforcement officials, and the 187.20 county attorney; 187.21 (5) collaboration with local community services, agencies, 187.22 and organizations that assist in violence intervention or 187.23 prevention, including family-based services, crisis services, 187.24 life management skills services, case coordination services, 187.25 mental health services, and early intervention services; 187.26 (6) collaboration among districts and SCs; 187.27 (7) targeting early adolescents for prevention efforts, 187.28 especially early adolescents whose personal circumstances may 187.29 lead to violent or harassing behavior; 187.30 (8) opportunities for teachers to receive in-service 187.31 training or attend other programs on strategies or curriculum 187.32 designed to assist students in intervening in or preventing 187.33 violence in school and at home; and 187.34 (9) administrative policies that reflect, and a staff that 187.35 models, nonviolent behaviors that do not display or condone 187.36 sexual, racial, or cultural harassment or student hazing. 188.1 (c) The department may provide assistance at a neutral site 188.2 to a nonpublic school participating in a district's program. 188.3 Sec. 10. Minnesota Statutes 1996, section 127.26, is 188.4 amended to read: 188.5 127.26 [CITATION.] 188.6 Sections 127.26 to 127.39 may be cited as "The pupil fair 188.7 dismissal act of 1974." 188.8 Sec. 11. Minnesota Statutes 1996, section 127.27, 188.9 subdivision 5, is amended to read: 188.10 Subd. 5. [EXPULSION.] "Expulsion" means an action taken by188.11 a school board action to prohibit an enrolled pupil from further 188.12 attendance for a period that shall not extend beyond an amount188.13 of time equalup to one school year12 months from the date a188.14 the pupil is expelled. 188.15 Sec. 12. Minnesota Statutes 1996, section 127.27, 188.16 subdivision 6, is amended to read: 188.17 Subd. 6. [PARENT.] "Parent" means (a) one of the pupil's 188.18 parents, or(b) in the case of divorce or legal separation, or188.19 if the child's mother was not married to the child's father when188.20 the child was conceived nor when the child was born, the188.21 custodial parentthe parent or parents with physical custody of 188.22 the pupil, including a noncustodial parent with legal custody 188.23 who has provided the district with a current address and 188.24 telephone number, or (c) a legally appointed guardian. In the 188.25 case of a pupil with a disability under the age of 18, parent 188.26 may include a district-appointed surrogate parent. 188.27 Sec. 13. Minnesota Statutes 1996, section 127.27, 188.28 subdivision 7, is amended to read: 188.29 Subd. 7. [PUPIL.] "Pupil" means any student with or: 188.30 (1) without a disability under 21 years of age; or 188.31 (2) with a disability until September 1 after the child 188.32 with a disability becomes 22 years of age; 188.33 (3) and who remains eligible to attend a public elementary 188.34 or secondary school. 188.35 Sec. 14. Minnesota Statutes 1996, section 127.27, 188.36 subdivision 8, is amended to read: 189.1 Subd. 8. [SCHOOL.] "School" means any school asdefined in 189.2 Minnesota Statutes 1971,section 120.05, subdivision 2. 189.3 Sec. 15. Minnesota Statutes 1996, section 127.27, 189.4 subdivision 10, is amended to read: 189.5 Subd. 10. [SUSPENSION.] "Suspension" means an action taken189.6 by the school administration, under rules promulgated by the 189.7 school board, prohibiting a pupil from attending school for a 189.8 period of no more than ten school days. If a suspension is 189.9 longer than five days, the suspending administrator must provide 189.10 the superintendent with a reason for the longer suspension. 189.11 This definition does not apply to dismissal from school for one 189.12 school day or less. Each suspension action shall include a 189.13 readmission plan. The readmission plan shall include, where 189.14 appropriate, a provision for implementing alternative programs189.15 to be implementededucational services upon readmission. 189.16 Suspension may not be consecutively imposedThe school 189.17 administration may not impose consecutive suspensions against 189.18 the same pupil for the same course of conduct, or incident of 189.19 misconduct, except where the pupil will create an immediate and 189.20 substantial danger to self or to surrounding persons or 189.21 property, or where the district is in the process of initiating 189.22 an expulsion, in which case the school administration may extend 189.23 the suspension up to 15 days. In no event shall suspension189.24 exceed 15 school days, provided that anIn the case of a pupil 189.25 with a disability, a suspension may not exceed ten school days. 189.26 The school administration shall implement alternative program189.27 shall be implementededucational services to the extent that 189.28 suspension exceeds five days. A separate administrative 189.29 conference is required for each period of suspension. 189.30 Sec. 16. Minnesota Statutes 1996, section 127.27, is 189.31 amended by adding a subdivision to read: 189.32 Subd. 11. [ALTERNATIVE EDUCATIONAL SERVICES.] "Alternative 189.33 educational services" may include, but are not limited to, 189.34 special tutoring, modified curriculum, modified instruction, 189.35 other modifications or adaptations, special education services 189.36 as indicated by appropriate assessment, homebound instruction, 190.1 or enrollment in another district or in an alternative learning 190.2 center under section 124C.45. 190.3 Sec. 17. Minnesota Statutes 1996, section 127.281, is 190.4 amended to read: 190.5 127.281 [EXCLUSION AND EXPULSION OF PUPILS WITH A 190.6 DISABILITY.] 190.7 When a pupil who has an individual education plan is 190.8 excluded or expelled under sections 127.26 to 127.39 for 190.9 misbehavior that is not a manifestation of the pupil's disabling190.10 conditiondisability, the district shall continue to provide 190.11 special education and related services after a period of 190.12 suspension, if suspension is imposed. The district shall 190.13 initiate a review of the pupil'sindividual education plan 190.14 within tenfive school days of the commencement ofcommencing an 190.15 expulsion, exclusion, or a suspension of ten days or more. 190.16 Sec. 18. Minnesota Statutes 1996, section 127.29, is 190.17 amended to read: 190.18 127.29 [GROUNDS FOR DISMISSAL.] 190.19 Subdivision 1. No school shall dismiss any pupil without 190.20 attempting to provide alternative programs of education prior to190.21 dismissaleducational services before dismissal proceedings, 190.22 except where it appears that the pupil will create an immediate 190.23 and substantial danger to self or to surrounding persons or 190.24 property. Such programs may include special tutoring,190.25 modification of the curriculum for the pupil, placement in a190.26 special class or assistance from other agencies.190.27 Subd. 2. A pupil may be dismissed on any of the following 190.28 grounds: 190.29 (a) willful violation of any reasonable school board 190.30 regulation. Such regulation must be clear and definite to 190.31 provide notice to pupils that they must conform their conduct to 190.32 its requirements; 190.33 (b) willful conduct whichthat materially and substantially 190.34 disrupts the rights of others to an education; or 190.35 (c) willful conduct whichthat endangers the pupil or other 190.36 pupils, or thesurrounding persons, or property of the school. 191.1 Sec. 19. Minnesota Statutes 1996, section 127.30, 191.2 subdivision 1, is amended to read: 191.3 Subdivision 1. No suspensionThe school administration 191.4 shall not suspend a pupil from school shall be imposedwithout 191.5 an informal administrative conference with the pupil , except. 191.6 The informal administrative conference shall take place before 191.7 the suspension, except where it appears that the pupil will 191.8 create an immediate and substantial danger to self or to 191.9 surrounding persons or property, in which case the conference 191.10 shall take place as soon as practicable following the suspension. 191.11 Sec. 20. Minnesota Statutes 1996, section 127.30, is 191.12 amended by adding a subdivision to read: 191.13 Subd. 1a. At the informal administrative conference, a 191.14 school administrator shall notify the pupil of the grounds for 191.15 the suspension, provide an explanation of the evidence the 191.16 authorities have, and the pupil may present the pupil's version 191.17 of the facts. 191.18 Sec. 21. Minnesota Statutes 1996, section 127.30, 191.19 subdivision 2, is amended to read: 191.20 Subd. 2. A written notice containing the grounds for 191.21 suspension, a brief statement of the facts, a description of the 191.22 testimony, a readmission plan, and a copy of sections 127.26 to 191.23 127.39, shall be personally served upon the pupil at or before 191.24 the time the suspension is to take effect, and upon the pupil's 191.25 parent or guardian by certifiedmail within 48 hours of the 191.26 conference. The district shall make reasonable efforts to 191.27 notify the parents of the suspension by telephone as soon as 191.28 possible following suspension. In the event a pupil is 191.29 suspended without an informal administrative conference on the 191.30 grounds that the pupil will create an immediate and substantial 191.31 danger to surrounding persons or property, the written notice 191.32 shall be served either personally or by certified mailupon the 191.33 pupil and the pupil's parent or guardian within 48 hours of the 191.34 suspension. Service by certifiedmail is complete upon mailing. 191.35 Sec. 22. Minnesota Statutes 1996, section 127.30, 191.36 subdivision 3, is amended to read: 192.1 Subd. 3. Notwithstanding the provisions of subdivisions 1 192.2 and 2, the pupil may be suspended pending the school board's 192.3 decision in the expulsion or exclusion hearing; provided that an192.4 alternative program shall beeducational services are 192.5 implemented to the extent that suspension exceeds five days. 192.6 Sec. 23. Minnesota Statutes 1996, section 127.31, 192.7 subdivision 2, is amended to read: 192.8 Subd. 2. Written notice of intent to take action shall: 192.9 (a) be served upon the pupil and the pupil's parent or 192.10 guardian personally or by certifiedmail; 192.11 (b) contain a complete statement of the facts, a list of 192.12 the witnesses and a description of their testimony; 192.13 (c) state the date, time, and place of the hearing; 192.14 (d) be accompanied by a copy of sections 127.26 to 127.39; 192.15 (e) describe alternative educational programsservices 192.16 accorded the pupil prior to commencement ofin an attempt to 192.17 avoid the expulsion or exclusionproceedings; and 192.18 (f) inform the pupil and parent or guardian of the right to: 192.19 (1) have a representative of the pupil's own choosing, 192.20 including legal counsel, at the hearing. The district shall 192.21 advise the pupil's parent or guardian that free or low-cost 192.22 legal assistance may be available and that a legal assistance 192.23 resource list is available from the department of children, 192.24 families, and learning; 192.25 (2) examine the pupil's records before the hearing; 192.26 (3) present evidence; and 192.27 (4) confront and cross-examine witnesses. 192.28 Sec. 24. Minnesota Statutes 1996, section 127.31, 192.29 subdivision 7, is amended to read: 192.30 Subd. 7. The hearing shall take place before: 192.31 (a)(1) an independent hearing officer; 192.32 (b)(2) a member of the school board; 192.33 (c)(3) a committee of the school board ,; or ;192.34 (d)(4) the full school board; 192.35 as determined by the school board. The hearing shall be 192.36 conducted in a fair and impartial manner. 193.1 Sec. 25. Minnesota Statutes 1996, section 127.31, 193.2 subdivision 8, is amended to read: 193.3 Subd. 8. The proceedings of the hearing shall be recorded193.4 and preserved, at the expense of the school district, pending193.5 ultimate disposition of the action.The school board shall 193.6 record the hearing proceedings at district expense, and a party 193.7 may obtain a transcript at its own expense. Testimony shall be 193.8 given under oath. The hearing officer or a member of the school 193.9 board shall have the power to issue subpoenas and administer 193.10 oaths. 193.11 Sec. 26. Minnesota Statutes 1996, section 127.31, 193.12 subdivision 13, is amended to read: 193.13 Subd. 13. The recommendation of the hearing officer or 193.14 school board member or committee shall be based solely upon 193.15 substantial evidence presented at the hearing and must be made 193.16 to the school board and served upon the parties within two days 193.17 of the end of the hearing. 193.18 Sec. 27. Minnesota Statutes 1996, section 127.31, 193.19 subdivision 14, is amended to read: 193.20 Subd. 14. The decision byThe school board shall be based193.21 base its decision upon the recommendation of the hearing officer 193.22 or school board member or committee and shall be renderedrender 193.23 its decision at a specialmeeting held within five days after 193.24 receipt ofreceiving the recommendation. The school board may 193.25 provide the parties with the opportunity to present exceptions 193.26 and comments to the hearing officer's recommendations provided 193.27 that neither party presents any evidence not admitted at the 193.28 hearing. The decision shallby the school board must be based 193.29 on the record, must be in writing, and must state the 193.30 controlling facts found uponon which the decision is made shall193.31 be statedin sufficient detail to apprise the parties and the 193.32 commissioner of children, families, and learning of the basis 193.33 and reason for the decision. 193.34 Sec. 28. Minnesota Statutes 1996, section 127.31, 193.35 subdivision 15, is amended to read: 193.36 Subd. 15. [ADMISSION OR READMISSION PLAN.] A school board194.1 mayadministrator shall prepare and enforce an admission or 194.2 readmission plan for any pupil who is suspended, excluded, or 194.3 expelled from school. The plan may include measures to improve 194.4 the pupil's behavior and require parental involvement in the 194.5 admission or readmission process, and may indicate the 194.6 consequences to the pupil of not improving the pupil's behavior. 194.7 Sec. 29. Minnesota Statutes 1996, section 127.311, is 194.8 amended to read: 194.9 127.311 [GOOD FAITH EXCEPTION.] 194.10 A violation of the technical provisions of the pupil fair 194.11 dismissal act of 1974, made in good faith, is not a defense to a 194.12 disciplinary procedure under the act unless the pupil can 194.13 demonstrate actual prejudice as a result of the violation. 194.14 Sec. 30. Minnesota Statutes 1996, section 127.32, is 194.15 amended to read: 194.16 127.32 [APPEAL.] 194.17 A party to an exclusion or expulsion decision made pursuant194.18 tounder sections 127.26 to 127.39 may be appealedappeal the 194.19 decision to the commissioner of children, families, and learning 194.20 within 21 calendar days of school board action. Upon being 194.21 served with a notice of appeal, the district shall provide the 194.22 commissioner and the parent or guardian with a complete copy of 194.23 the hearing record within five days of its receipt of the notice 194.24 of appeal. All written submissions by the appellant must be 194.25 submitted and served on the respondent within ten days of its 194.26 actual receipt of the transcript. All written submissions by 194.27 the respondent must be submitted and served on the appellant 194.28 within ten days of its actual receipt of the written submissions 194.29 of the appellant. 194.30 In an appeal under this section, the commissioner may 194.31 affirm the decision of the agency or may reverse or modify the 194.32 decision if the substantial rights of the petitioners may have 194.33 been prejudiced because the administrative findings, inferences, 194.34 conclusions, or decisions are: 194.35 (1) in violation of constitutional provisions; 194.36 (2) in excess of the statutory authority or jurisdiction of 195.1 the school district; 195.2 (3) made upon unlawful procedure, except as provided in 195.3 section 127.311; 195.4 (4) affected by other error of law; 195.5 (5) unsupported by substantial evidence in view of the 195.6 entire record submitted; or 195.7 (6) arbitrary or capricious. 195.8 The commissioner or the commissioner's representative shall make 195.9 a final decision based upon athe record of evidence presented 195.10 at the hearing. Such ruling shall be binding upon the parties,195.11 subject to judicial review as provided in section 127.33.The 195.12 commissioner shall issue a decision within 30 calendar days of 195.13 receiving the entire record and the parties' written submission 195.14 on appeal. The commissioner's decision shall be final and 195.15 binding upon the parties after the time for appeal expires under 195.16 section 127.33. 195.17 Sec. 31. Minnesota Statutes 1996, section 127.33, is 195.18 amended to read: 195.19 127.33 [JUDICIAL REVIEW.] 195.20 The decision of the commissioner of children, families, and 195.21 learning made pursuant tounder sections 127.26 to 127.39 shall195.22 beis subject to judicial review in accordance with chapter 14195.23 under sections 14.63 to 14.69. The decision of the commissioner 195.24 is stayed pending an appeal under this section. 195.25 Sec. 32. Minnesota Statutes 1996, section 127.36, is 195.26 amended to read: 195.27 127.36 [REPORT TO COMMISSIONER OF CHILDREN, FAMILIES, AND 195.28 LEARNING.] 195.29 Subdivision 1. [EXCLUSIONS AND EXPULSIONS.] The school 195.30 board shall report each exclusion or expulsion within 30 days of 195.31 the effective date of the action to the commissioner of 195.32 children, families, and learning. This report shall include a 195.33 statement of alternative programs of education accorded195.34 educational services given the pupil prior to the commencement195.35 ofbefore beginning exclusion or expulsion proceedings, and the 195.36 reason for, the effective date, and the duration of the 196.1 exclusion or expulsion. 196.2 Subd. 2. [REPORT.] The school board must include state 196.3 student identification numbers of affected pupils on all 196.4 dismissal reports required by the department. The department 196.5 must report annually to the commissioner summary data on the 196.6 number of dismissals by age, grade, gender, race, and special 196.7 education status of the affected pupils. 196.8 Sec. 33. Minnesota Statutes 1996, section 127.37, is 196.9 amended to read: 196.10 127.37 [NOTICE OF RIGHT TO BE REINSTATED.] 196.11 Whenever a pupil fails to return to school within ten 196.12 school days of the termination of dismissal, a school 196.13 administrator shall inform the pupil and the pupil's 196.14 parents shall be informedby certifiedmail of the pupil's right 196.15 to attend and to be reinstated in the public school. 196.16 Sec. 34. Minnesota Statutes 1996, section 127.38, is 196.17 amended to read: 196.18 127.38 [POLICIES TO BE ESTABLISHED.] 196.19 (a) The commissioner of children, families, and learning 196.20 shall promulgate guidelines to assist each school board. Each 196.21 school board shall establish uniform criteria for dismissal and 196.22 adopt written policies and rules in writingto effectuate the 196.23 purposes of sections 127.26 to 127.39. The policies willshall 196.24 emphasize the prevention of dismissal actionpreventing 196.25 dismissals through early detection of problems. The policies 196.26 shall recognize the continuing responsibility of the school for 196.27 the education of the pupil during the dismissal period. The 196.28 alternative educational services, if the pupil wishes to take 196.29 advantage of them, must be adequate to allow the pupil to make 196.30 progress towards meeting the graduation standards adopted under 196.31 section 121.11, subdivision 7c, and help prepare the pupil for 196.32 readmission. 196.33 (b) An area learning center under section 124C.45 may not 196.34 prohibit an expelled or excluded pupil from enrolling solely 196.35 because a district expelled or excluded the pupil. The board of 196.36 the area learning center may use the provisions of the Pupil 197.1 Fair Dismissal Act to exclude a pupil or to require an admission 197.2 plan. 197.3 (c) The commissioner shall actively encourage and assist 197.4 school districts to cooperatively establish alternative learning197.5 programseducational services that offer instruction to pupils 197.6 who are dismissed from school for willfully engaging in 197.7 dangerous, disruptive, or violent behavior, including for 197.8 possessing a firearm in a school zone. 197.9 Sec. 35. [127.465] [HAZING POLICY.] 197.10 Subdivision 1. [DEFINITIONS.] (a) "Hazing" means 197.11 committing an act against a student, or coercing a student into 197.12 committing an act, that creates a substantial risk of harm to a 197.13 person in order for the student to be initiated into or 197.14 affiliated with a student organization. 197.15 (b) "Student organization" means a group, club, or 197.16 organization having students as its primary members or 197.17 participants. 197.18 Subd. 2. [MODEL POLICY.] The commissioner of children, 197.19 families, and learning shall maintain and make available to 197.20 school boards a model policy on student or staff hazing that 197.21 addresses the requirements of subdivision 3. 197.22 Subd. 3. [SCHOOL BOARD POLICY.] Each school board shall 197.23 adopt a written policy governing student or staff hazing. The 197.24 policy must apply to student behavior that occurs on or off 197.25 school property and during and after school hours. The policy 197.26 must include reporting procedures and disciplinary consequences 197.27 for violating the policy. Disciplinary consequences must be 197.28 sufficiently severe to deter violations and appropriately 197.29 discipline prohibited behavior. Disciplinary consequences must 197.30 conform with sections 127.27 to 127.39. Each school must 197.31 include the policy in the student handbook on school policies. 197.32 Sec. 36. Minnesota Statutes 1996, section 128C.02, 197.33 subdivision 2, is amended to read: 197.34 Subd. 2. [SEXUAL HARASSMENT AND VIOLENCE; HAZING.] The 197.35 board of the league shall adopt a policy, rules, penalties, and 197.36 recommendations addressing sexual harassment and sexual violence 198.1 and hazing toward and by participants in league activities. 198.2 Sec. 37. Minnesota Statutes 1996, section 128C.02, is 198.3 amended by adding a subdivision to read: 198.4 Subd. 9. [BUDGET.] The league is subject to the 198.5 commissioner of finance's rules and instructions governing 198.6 budget preparation. The league budget must be submitted to the 198.7 commissioner of finance and to the legislature in the same 198.8 manner as budgets of executive branch agencies. 198.9 Sec. 38. Minnesota Statutes 1996, section 128C.12, 198.10 subdivision 1, is amended to read: 198.11 Subdivision 1. [DUES AND EVENTS REVENUE.] The state 198.12 auditor annually must examine the accounts of, and audit all 198.13 money paid to, the state high school league by its members. The 198.14 audit must include financial and compliance issues. The state 198.15 auditor must also audit all money derived from any event 198.16 sponsored by the league and review any private audits done for198.17 the league. League audits must include audits of administrative 198.18 regions of the league. The league and its administrative 198.19 regions may not contract with private auditors. The scope of 198.20 the state auditor's examinations of the league must be agreed 198.21 upon by the board and the state auditor, provided that all 198.22 requirements of this section must be met. 198.23 Sec. 39. [128C.13] [INVESTMENT.] 198.24 The governing board of the league may request the state 198.25 board of investment to invest nonretirement funds of the league, 198.26 and the state board of investment may invest these funds when 198.27 requested. 198.28 Sec. 40. [135A.081] [REMEDIAL INSTRUCTION; HIGH SCHOOL 198.29 DIPLOMA WARRANTY.] 198.30 Subdivision 1. [CONDITIONS.] A public post-secondary 198.31 institution may provide remedial instruction if within 12 months 198.32 of first enrollment, the institution determines that the 198.33 student's English language reading or writing ability, or the 198.34 student's mathematic ability does not rise to the level that is 198.35 a necessary prerequisite to minimally acceptable comprehension 198.36 of entry level courses or programs at the institution. 199.1 Subd. 2. [CONFIRMATION.] The institution's determination 199.2 of a student's substandard ability is confirmed if the student 199.3 scores below 12th grade level in a standardized test in any of 199.4 the following areas covered by the determination: English 199.5 language reading comprehension, English language composition, or 199.6 mathematics. 199.7 Subd. 3. [HIGH SCHOOL DIPLOMA WARRANTY COVERAGE.] (a) If a 199.8 student who graduated from a public high school scores below the 199.9 8th grade level on a confirming test, the student's high school 199.10 shall pay the tuition for the student for all remedial courses 199.11 in the area covered by the confirming test that the student 199.12 takes in the first year after the student's graduation from high 199.13 school. The student's high school shall pay one-half of the 199.14 tuition for the student for all remedial courses in the area 199.15 covered by the confirming test that the student takes in the 199.16 second year after the student's graduation from high school. 199.17 This subdivision shall apply to students graduating from a 199.18 public high school on or after May 1, 1999. 199.19 (b) The payment of tuition by the public high school shall 199.20 be waived if the high school can demonstrate, through the 199.21 results of a standardized test, that the student had attained 199.22 8th grade level performance in the area covered by the 199.23 confirming test prior to graduation. 199.24 Subd. 4. [NO CREDITS; STUDENT COSTS.] A post-secondary 199.25 institution providing remedial instruction under this section 199.26 must not award credit to a student toward a degree or program 199.27 completion for remedial instruction provided under this section. 199.28 Subd. 5. [JUST CLAIM.] A request for payment for remedial 199.29 instruction to a student under this section is, under section 199.30 123.40, subdivision 1, a just claim against the school district 199.31 that includes the student's high school. 199.32 Sec. 41. [135A.155] [HAZING POLICY.] 199.33 The board of trustees of the Minnesota state colleges and 199.34 universities shall, and the University of Minnesota is requested 199.35 to, adopt a clear, understandable written policy on student 199.36 conduct, including hazing. The policy must include procedures 200.1 for reporting incidents of inappropriate hazing and for 200.2 disciplinary actions against individual violators and 200.3 organizations. The policy must be provided to students when 200.4 they register and must be posted at appropriate locations on 200.5 campus. A private post-secondary institution that is an 200.6 eligible institution as defined in section 136A.101, subdivision 200.7 4, must adopt a policy that meets the requirements of this 200.8 section. 200.9 Sec. 42. Minnesota Statutes 1996, section 245.91, 200.10 subdivision 2, is amended to read: 200.11 Subd. 2. [AGENCY.] "Agency" means the divisions, 200.12 officials, or employees of the state departments of human 200.13 services and, health, children, families, and learning, and of 200.14 local school districts and designated county social service 200.15 agencies as defined in section 256G.02, subdivision 7, that are 200.16 engaged in monitoring, providing, or regulating services or 200.17 treatment for mental illness, mental retardation or a related 200.18 condition, chemical dependency, or emotional disturbance. 200.19 Sec. 43. [PROTECTIVE SOFTWARE.] 200.20 Subdivision 1. [SOFTWARE RECOMMENDATIONS.] The 200.21 commissioner of children, families, and learning shall research, 200.22 evaluate, and make recommendations to school districts on 200.23 computer software products that filter, block, or otherwise 200.24 prevent the use of school computers for the transmission of any 200.25 comment, request, suggestion, proposal, image, or other 200.26 communication which is: 200.27 (1) obscene, indecent, or sexually explicit; or 200.28 (2) intended to promote or incite violence against other 200.29 living persons. 200.30 Subd. 2. [SCHOOL DISTRICTS.] Within one year of the 200.31 commissioner completing the requirements of subdivision 1, each 200.32 school district must adopt a policy on Internet usage. 200.33 Sec. 44. [CONSULTATION.] 200.34 The commissioner of children, families, and learning shall 200.35 consult with the Minnesota school board association in preparing 200.36 the model hazing policy under Minnesota Statutes, section 201.1 127.465. 201.2 Sec. 45. [CLASS SIZE PROJECT.] 201.3 A class size project is established in independent school 201.4 district No. 12, Centennial. The purpose of this project is to 201.5 establish that significantly lower class size and 201.6 instructor-to-learner ratios in a suburban community will result 201.7 in measurable achievements for students, staff, and parents. 201.8 Sec. 46. [INSTRUCTIONAL DAY CLARIFICATION.] 201.9 (a) This section applies to any school district employee 201.10 who was scheduled to work on January 16, 1997, did not work on 201.11 that day, and did not receive compensation for that day. 201.12 (b) Notwithstanding any law to the contrary, a school 201.13 district must either: (1) allow any school district employee 201.14 under paragraph (a) the opportunity to work on another day that 201.15 the school district designates and must compensate the employee 201.16 working on the designated day at the employee's normal rate of 201.17 pay; or (2) compensate any school district employee under 201.18 paragraph (a) for that day at the employee's normal rate of pay. 201.19 Sec. 47. [PARTNERS FOR QUALITY SCHOOL IMPROVEMENT PILOT 201.20 TRAINING PROGRAM.] 201.21 Subdivision 1. [ESTABLISHMENT.] The school improvement 201.22 training and performance pilot program is established to 201.23 accelerate school quality and performance improvement 201.24 initiatives that lead to improved student achievement in both 201.25 high-performing and under-performing schools. 201.26 Subd. 2. [ELIGIBILITY.] A school district is eligible to 201.27 apply for a grant to establish one or more school improvement 201.28 training and performance sites. The application and selection 201.29 process must be developed and implemented by the Minnesota 201.30 academic excellence foundation and reviewed by the commissioner 201.31 of children, families, and learning. Priority for participation 201.32 must be given to school districts in which: 201.33 (1) the district has received an educational performance 201.34 improvement grant under Laws 1994, chapter 647, article 7, 201.35 section 18, and has demonstrated improvement in student learning 201.36 as a result of the grant; 202.1 (2) one school or the district has completed training in a 202.2 statewide quality improvement initiative; 202.3 (3) the district has demonstrated accountability by 202.4 developing and communicating an agenda to increase student 202.5 learning; 202.6 (4) there are significant numbers of students with critical 202.7 learning needs and gaps in learning between these students and 202.8 other groups of students; and 202.9 (5) site-based management is being implemented. 202.10 Subd. 3. [PROGRAM SERVICES.] The Minnesota academic 202.11 excellence foundation must provide training and technical 202.12 assistance to selected districts to: 202.13 (1) create plans for the districtwide deployment of quality 202.14 improvement training to all staff; 202.15 (2) create a means for identifying and providing remedial, 202.16 interventive, or preventive assistance to schools in the 202.17 district, based upon the schools' performances against state and 202.18 local goals and standards; 202.19 (3) accelerate school performance and student learning in 202.20 high-performing and under-performing schools; and 202.21 (4) train quality program trainers at each site. 202.22 Subd. 4. [SCHOOL DISTRICT PARTICIPANTS.] Selected 202.23 districts must enter into a contract to achieve increases in 202.24 student learning, staff development and performance, and 202.25 administrative support services to schools within the district. 202.26 Additionally, each selected district must: 202.27 (1) plan and deploy quality improvement and other training 202.28 to all staff in the district; 202.29 (2) establish quality and performance goals and measure 202.30 results and report the achieved results at the selected school 202.31 sites; and 202.32 (3) assist in duplicating successful programs in other 202.33 districts by providing training to other school districts for a 202.34 period of up to four years, in collaboration with the Minnesota 202.35 academic excellence foundation. 202.36 Subd. 5. [REPORT.] The Minnesota academic excellence 203.1 foundation must report to the commissioner of children, 203.2 families, and learning on the progress of the project and 203.3 annually on the results of the project. 203.4 Sec. 48. [GRANT PROGRAM FOR VIOLENCE PREVENTION THROUGH 203.5 THE DEVELOPMENT OF PLAYS, WORKSHOPS, AND EDUCATIONAL RESOURCES.] 203.6 Subdivision 1. [GRANT PROGRAM.] The commissioner shall 203.7 administer a grant program to fund statewide programs to create 203.8 and develop theatrical plays, workshops, and educational 203.9 resources based on peer education models that promote increased 203.10 awareness and prevention of sexual abuse, interpersonal 203.11 violence, emotional violence, and sexual harassment. Programs 203.12 eligible for grants must use a combination of theater 203.13 professionals and prevention specialists in the delivery of the 203.14 service and use a peer education model that uses researched and 203.15 proven content in training youth to perform in the plays and 203.16 workshops. Programs must provide the source material, the 203.17 training program, develop the educational materials, and provide 203.18 technical assistance. 203.19 Subd. 2. [GRANT PROCEDURE.] Programs may apply for a grant 203.20 by submitting an application to the commissioner. The 203.21 commissioner may distribute grants to one or more programs 203.22 meeting the criteria described in subdivision 1. 203.23 Sec. 49. [EXEMPTION TO LABOR DAY SCHOOL START 203.24 RESTRICTION.] 203.25 Subdivision 1. [1998-1999 AND 1999-2000 SCHOOL 203.26 YEARS.] Notwithstanding Minnesota Statutes, section 126.12, 203.27 subdivision 1, for the 1998-1999 and 1999-2000 school years 203.28 only, a school board may begin the elementary or secondary 203.29 school year on the Wednesday, Thursday, or Friday prior to Labor 203.30 Day. 203.31 Subd. 2. [COLUMBIA HEIGHTS.] Notwithstanding Minnesota 203.32 Statutes, section 126.12, subdivision 1, independent school 203.33 district No. 13, Columbia Heights, may begin the school year 203.34 before Labor Day only by the number of days necessary to 203.35 accommodate the district building construction and remodeling 203.36 project. 204.1 Subd. 3. [CROOKSTON.] Notwithstanding Minnesota Statutes, 204.2 section 126.12, subdivision 1, independent school district No. 204.3 593, Crookston, may begin the 1997-1998 school year the 204.4 Wednesday before Labor Day to accommodate the transition into 204.5 the new high school and the renovated junior high school 204.6 building. 204.7 Subd. 4. [GRAND RAPIDS.] Notwithstanding Minnesota 204.8 Statutes, section 126.12, subdivision 1, independent school 204.9 district No. 318, Grand Rapids, may begin the 1997-1998 school 204.10 year before Labor Day only by the number of days necessary to 204.11 accommodate the district building construction project. 204.12 Subd. 5. [ISLE.] Notwithstanding Minnesota Statutes, 204.13 section 126.12, subdivision 1, for the 1997-1998 school year, 204.14 independent school district No. 473, Isle, may begin the 204.15 elementary and secondary school year on August 18, 1997, in 204.16 order for the school district to complete its conversion of an 204.17 existing elementary school to a K-12 facility before the 204.18 beginning of the 1998-1999 school year. 204.19 Subd. 6. [LAKE PARK; AUDUBON.] Notwithstanding Minnesota 204.20 Statutes, section 126.12, subdivision 1, for the 1997-1998 204.21 school year, independent school district Nos. 24, Lake Park, and 204.22 21, Audubon, may begin the elementary and secondary school year 204.23 on August 25, 1997, in order for independent school district No. 204.24 24, Lake Park, to accommodate its building renovation schedule 204.25 at the end of that school year. 204.26 Subd. 7. [NEW PRAGUE.] Notwithstanding Minnesota Statutes, 204.27 section 126.12, subdivision 1, independent school district No. 204.28 721, New Prague, may begin the 1997-1998 school year prior to 204.29 Labor Day only by the number of days necessary to accommodate 204.30 the district building and remodeling project. 204.31 Subd. 8. [WAYZATA.] Notwithstanding Minnesota Statutes, 204.32 section 126.12, subdivision 1, independent school district No. 204.33 284, Wayzata, may begin the 1997-1998 school year prior to Labor 204.34 Day only by the number of days necessary to accommodate the 204.35 transition into the new senior high school building. 204.36 Sec. 50. [FUND TRANSFERS.] 205.1 Subdivision 1. [HILL CITY.] (a) Notwithstanding Minnesota 205.2 Statutes, section 121.912 or 121.9121, on June 30, 1997, 205.3 independent school district No. 2, Hill City, may permanently 205.4 transfer up to $55,000 from its general fund to its debt 205.5 redemption fund for the purpose of repaying the principal and 205.6 any interest owed on its outstanding debt service loans. Any 205.7 amount transferred but not used to repay the debt service loans 205.8 must be applied to the district's outstanding capital loan 205.9 balance. 205.10 (b) The commissioner of children, families, and learning 205.11 shall recompute the general education fund balance reduction for 205.12 fiscal year 1997 for independent school district No. 2, Hill 205.13 City. For purposes of this reduction, the commissioner shall 205.14 lower the district's net unappropriated operating balance as of 205.15 June 30, 1996, by the amount that is transferred from the 205.16 general fund to the debt redemption fund under paragraph (a). 205.17 General education aid for fiscal year 1997 for independent 205.18 school district No. 2, Hill City, must be adjusted according to 205.19 this subdivision. 205.20 The general education levy attributable to fiscal year 1997 205.21 for independent school district No. 2, Hill City, must be 205.22 adjusted according to this subdivision. 205.23 Subd. 2. [FERGUS FALLS.] Notwithstanding Minnesota 205.24 Statutes, sections 121.912, 121.9121, and 475.61, subdivision 4, 205.25 on June 30, 1997, independent school district No. 544, Fergus 205.26 Falls, may permanently transfer up to $202,000 from its debt 205.27 redemption fund to its building construction fund without making 205.28 a levy reduction. 205.29 Subd. 3. [FOSSTON.] Notwithstanding Minnesota Statutes, 205.30 sections 121.912, 121.9121, and 475.61, subdivision 4, on June 205.31 30, 1997, independent school district No. 601, Fosston, may 205.32 permanently transfer up to $105,000 from the debt redemption 205.33 fund to its building construction fund without making a levy 205.34 reduction. 205.35 Subd. 4. [MEDFORD.] Notwithstanding Minnesota Statutes, 205.36 sections 121.912 and 121.9121, independent school district No. 206.1 763, Medford, may permanently transfer up to a total of $200,000 206.2 by June 30, 1998, from reserve accounts in the general fund to 206.3 the unreserved general fund. The transfers may be made from 206.4 either the bus purchase account or from the reserve for 206.5 operating capital account. Transfers from the bus purchase 206.6 account may be made without making a levy reduction. 206.7 Subd. 5. [BELGRADE-BROOTEN-ELROSA.] Notwithstanding 206.8 Minnesota Statutes, sections 121.912 and 121.9121, on June 30, 206.9 1997, independent school district No. 2364, 206.10 Belgrade-Brooten-Elrosa, may permanently transfer up to $250,000 206.11 from the bus purchase account to its general fund. 206.12 Sec. 51. [CONVEYANCE OF TRUST FUND LANDS; MCLEOD COUNTY.] 206.13 Notwithstanding Special Laws 1858, chapter 21, as amended 206.14 by Special Laws 1865, chapter 7; Minnesota Statutes 1866, 206.15 chapter 35, title 1; Special Laws 1868, chapter 114; or any 206.16 other law to the contrary, the McLeod county board of 206.17 commissioners may transfer its existing authority to appoint the 206.18 trustees of the Stevens Seminary to the Glencoe-Silver Lake 206.19 school board. The board may also transfer any other authority 206.20 held by the board over the trustees to the school board. 206.21 Sec. 52. [INDEPENDENT SCHOOL DISTRICT NO. 4, MCGREGOR; 206.22 LEVY.] 206.23 Independent school district No. 4, McGregor, may levy, with 206.24 the approval of the commissioner, to eliminate a deficit in the 206.25 net unappropriated balance in the operating funds of the 206.26 district, determined and adjusted and certified by the 206.27 commissioner as of June 30, 1997. This amount shall be reduced 206.28 by referendum revenue authorized under Minnesota Statutes, 206.29 section 124A.03, pursuant to a plan filed under Minnesota 206.30 Statutes, section 121.917, and any other revenue made available 206.31 for this purpose. The total levy for all years it is made shall 206.32 not exceed the amount of the deficit. The proceeds of this levy 206.33 or other available revenue shall only be used for cash flow 206.34 requirements and shall not be used to supplement district 206.35 revenue or income. 206.36 Sec. 53. [HIGH SCHOOL LEAGUE COMPENSATION PLAN.] 207.1 The current total compensation plan for the executive 207.2 director and for all other league employees shall be reviewed by 207.3 the commissioner of employee relations. In considering total 207.4 compensation for league employees, the commissioner of employee 207.5 relations shall compare league compensation to the compensation 207.6 of other Minnesota state employees and school district 207.7 employees, taking account of the knowledge, skills, 207.8 responsibilities, and working conditions of the jobs. 207.9 Sec. 54. [MODEL STUDENT BILL OF RIGHTS AND 207.10 RESPONSIBILITIES.] 207.11 The commissioner of children, families, and learning shall 207.12 maintain and make available to school boards a model student 207.13 bill of rights and responsibilities. The commissioner shall 207.14 develop the model policy, in consultation with students involved 207.15 in YMCA youth in government, Project 120, governor's scholars, 207.16 the student council association, and other student groups. 207.17 Sec. 55. [STATE BOARD OF EDUCATION.] 207.18 The state board of education shall amend its guidelines for 207.19 approving experimental management systems to eliminate the 207.20 requirement for renewal after initial approval of an 207.21 experimental management arrangement. 207.22 Sec. 56. [TEACHER RETIREMENT.] 207.23 (a) Notwithstanding Minnesota Statutes, section 354.41, 207.24 subdivision 4, a person who is a member of the teacher 207.25 retirement association and is employed by the Minnesota 207.26 federation of teachers or its affiliated branches within the 207.27 state or by the Minnesota education association on July 1, 1997, 207.28 may remain a coordinated member. 207.29 (b) Notwithstanding Minnesota Statutes, section 354.41, 207.30 subdivision 5, payments of the applicable employee 207.31 contributions, employer contributions, and additional employer 207.32 contributions under Minnesota Statutes, section 354.42, 207.33 subdivisions 2, 3, and 5, must be made in a lump sum to the 207.34 association on or before June 30 of each fiscal year. 207.35 Sec. 57. [APPROPRIATIONS.] 207.36 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 208.1 LEARNING.] The sums indicated in this section are appropriated 208.2 from the general fund to the department of children, families, 208.3 and learning for the fiscal years designated. 208.4 Subd. 2. [PARTNERS FOR QUALITY SCHOOL IMPROVEMENT.] For 208.5 the school improvement pilot training program: 208.6 $500,000 ..... 1998 208.7 Up to $20,000 may be used by the Minnesota academic 208.8 excellence foundation to deliver training, coaching, technical 208.9 assistance, and other services to selected districts. Contracts 208.10 shall be awarded to at least six districts, two each to rural, 208.11 suburban, and urban school districts. Any portion of the 208.12 appropriation not expended in the first year shall not cancel 208.13 but shall be available until June 30, 1999. 208.14 Subd. 3. [PREVENTING VIOLENCE THROUGH PLAYS AND 208.15 WORKSHOPS.] For administering the grant program for preventing 208.16 violence through developing plays, workshops, and educational 208.17 resources: 208.18 $75,000 ..... 1998 208.19 $75,000 ..... 1999 208.20 Subd. 4. [CENTENNIAL CLASS SIZE PROJECT.] For a grant to 208.21 independent school district No. 12, Centennial, for the class 208.22 size project: 208.23 $180,000 ..... 1998 208.24 $180,000 ..... 1999 208.25 Any balance remaining in the first year does not cancel but 208.26 is available in the second year. 208.27 Subd. 5. [MODEL SCHOOL FOR CHRONIC TRUANTS.] For the model 208.28 school for chronic truants located in the law enforcement center 208.29 in Mankato: 208.30 $40,000 ..... 1998 208.31 $40,000 ..... 1999 208.32 Subd. 6. [AQUILA COMMUNITY TOGETHER PROJECT.] For a grant 208.33 to independent school district No. 283, St. Louis Park, for the 208.34 Aquila community together project: 208.35 $30,000 ..... 1998 208.36 $30,000 ..... 1999 209.1 This appropriation must be matched from nonstate sources. 209.2 Any balance in the first year does not cancel but is 209.3 available in the second year. 209.4 Subd. 7. [MINNESOTA INTERNATIONAL CENTER.] For the 209.5 Minnesota International Center to encourage and foster contacts 209.6 between Minnesota school children, their teachers, and people 209.7 from other nations through international classroom connection: 209.8 $80,000 ..... 1998 209.9 $80,000 ..... 1999 209.10 Subd. 8. [COMMUNITY HEALTH CENTER.] For independent school 209.11 district No. 99, Esko, to develop and operate a community health 209.12 and physical fitness center offering district residents programs 209.13 in community health and fitness, athletic training services, and 209.14 physical therapy: 209.15 $30,000 ..... 1998 209.16 This appropriation is contingent upon the school district 209.17 obtaining a $30,000 in-kind contribution of physical fitness 209.18 equipment from a private nonprofit source that is made 209.19 permanently available to the community health and physical 209.20 fitness center. 209.21 Subd. 9. [MCGREGOR GRANT.] For a grant to independent 209.22 school district No. 4, McGregor, to reduce a net operating fund 209.23 deficit: 209.24 $50,000 ..... 1998 209.25 Sec. 58. [REPEALER.] 209.26 Minnesota Statutes 1996, sections 120.105; 120.65; and 209.27 127.31, subdivision 6, are repealed. 209.28 Sec. 59. [EFFECTIVE DATES.] 209.29 (a) Section 1 applies to the 1997-1998 school year and 209.30 thereafter. 209.31 (b) Section 35 is effective January 1, 1998. 209.32 (c) Sections 37 and 38 are effective 30 days after final 209.33 enactment. 209.34 (d) Section 50 is effective retroactively to June 30, 1997. 209.35 (e) Section 51 is effective the day following final 209.36 enactment without local approval pursuant to Minnesota Statutes, 210.1 section 645.021, subdivision 2. 210.2 (f) If this act is enacted on or after July 1, 1997, 210.3 section 56 is effective retroactively to July 1, 1997. 210.4 (g) If this act is enacted on or after July 1, 1997, all 210.5 sections in this article except for those sections listed in 210.6 paragraphs (a) to (f) are effective the day following final 210.7 enactment. 210.8 ARTICLE 8 210.9 LIBRARIES 210.10 Section 1. Minnesota Statutes 1996, section 134.155, 210.11 subdivision 2, is amended to read: 210.12 Subd. 2. [GRANTS.] The commissioner of children, families, 210.13 and learning, in consultation with the multicultural advisory 210.14 committee established in section 126.82, shall award grants for 210.15 professional development programs to recruit and educate people 210.16 of color in the field of library science or information 210.17 management. Grant applicants must be a public library 210.18 jurisdiction with a growing minority population working in 210.19 collaboration with an accredited institution of higher education 210.20 with a library education program in the state of Minnesota. 210.21 Sec. 2. Minnesota Statutes 1996, section 134.155, 210.22 subdivision 3, is amended to read: 210.23 Subd. 3. [PROGRAM REQUIREMENTS.] (a) A grant recipient 210.24 shall recruit people of color to be library staff in public 210.25 libraries and provide support in linking program participants 210.26 with jobs in the recipient's library jurisdiction. 210.27 (b) A grant recipient shall establish an advisory council 210.28 composed of representatives of communities of color. 210.29 (c) A grant recipient, with the assistance of the advisory 210.30 council, may recruit high school students, undergraduate 210.31 students or other persons; support them through the higher 210.32 education application and admission process; advise them while 210.33 enrolled; and link them with support resources in the college or 210.34 university and the community. 210.35 (d) A grant recipient shall award stipends to people of 210.36 color enrolled in a library education program to help cover the 211.1 costs of tuition, student fees, supplies, and books. Stipend 211.2 awards must be based upon a student's financial need and 211.3 students must apply for any additional financial aid for which 211.4 they are eligible to supplement this program. No more than ten 211.5 percent of the grant may be used for costs of administering the 211.6 program. Students must agree to work in the grantee library 211.7 jurisdiction for at least two years after graduation if the 211.8 student acquires a master's degree and at least three years 211.9 after graduation if the student acquires both a bachelor's and a 211.10 master's degree while participating in the program. If no 211.11 full-time position is available in the library jurisdiction, the 211.12 student may fulfill the work requirement in another Minnesota 211.13 publiclibrary. 211.14 (e) The commissioner of children, families, and learning 211.15 shall consider the following criteria in awarding grants: 211.16 (1) whether the program is likely to increase the 211.17 recruitment and retention of persons of color in librarianship; 211.18 (2) whether grant recipients will establish or have a 211.19 mentoring program for persons of color; and 211.20 (3) whether grant recipients will provide a library 211.21 internship for persons of color while participating in this 211.22 program. 211.23 Sec. 3. Minnesota Statutes 1996, section 134.34, 211.24 subdivision 4, is amended to read: 211.25 Subd. 4. A regional library basic system support grant 211.26 shall not be made to a regional public library system for a 211.27 participating city or county which decreases the dollar amount 211.28 provided for support for operating purposes of public library 211.29 service below the amount provided by it for the second preceding 211.30 year. This subdivision shall not apply to participating cities 211.31 or counties where the adjusted net tax capacity of that city or 211.32 county has decreased, if the dollar amount of the reduction in 211.33 support is not greater than the dollar amount by which support 211.34 would be decreased if the reduction in support were made in 211.35 direct proportion to the decrease in adjusted net tax capacity. 211.36 Sec. 4. [LIBRARY PILOT PROJECT.] 212.1 Subdivision 1. [ESTABLISHMENT.] Notwithstanding law to the 212.2 contrary and subject to approvals in subdivision 2, a public 212.3 library may operate as a pilot project jointly with the school 212.4 library at Nashwauk-Keewatin high school, located in the city of 212.5 Nashwauk. The public library is established to serve persons 212.6 within the boundaries of independent school district No. 319, 212.7 except the city of Keewatin. 212.8 Subd. 2. [APPROVALS.] Operation of the public library is 212.9 contingent upon a resolution approved by the governing bodies of 212.10 cities, towns, and unorganized townships within the geographical 212.11 boundaries of independent school district No. 319, except for 212.12 the city of Keewatin. For the purposes of this subdivision, the 212.13 Itasca county board is designated as the governing body for the 212.14 unorganized townships. 212.15 Subd. 3. [BOARD; APPOINTMENTS.] The resolution in 212.16 subdivision 2 shall provide for a library board of five members 212.17 as follows: two members appointed by the school board of 212.18 independent school district No. 319, one member appointed by 212.19 each town board located within independent school district No. 212.20 319 boundaries, one member appointed by the council of the city 212.21 of Nashwauk, and one member appointed by the Itasca county board 212.22 to represent the unorganized towns within the school district 212.23 territory. 212.24 Subd. 4. [BOARD TERMS; COMPENSATION.] The library board 212.25 members shall serve for the term of the pilot program. An 212.26 appointing authority may remove for misconduct or neglect any 212.27 member it has appointed to the board and may replace that member 212.28 by appointment. Board members shall receive no compensation for 212.29 their services but may be reimbursed for actual and necessary 212.30 travel expenses incurred in the discharge of library board 212.31 duties and activities. 212.32 Subd. 5. [FUNDING.] For taxes payable in 1998 and 1999 212.33 only, the library board may levy a tax in an amount up to 212.34 $25,000 annually on property located within the boundaries of 212.35 independent school district No. 319, except the city of 212.36 Keewatin. The Itasca county auditor shall collect the tax and 213.1 distribute it to the library board. The money may be used for 213.2 library staff and for the purchase of library materials, 213.3 including computer software. The levy must also fund the amount 213.4 necessary to receive bookmobile services from the Arrowhead 213.5 regional library system. For taxes payable in 1998 and 1999 213.6 only, the county may not levy under Minnesota Statutes, section 213.7 134.07, for the areas described in this section. 213.8 Subd. 6. [BUILDING.] The school district shall provide the 213.9 physical space and costs associated with operating the library 213.10 including, but not limited to, heat, light, telephone service, 213.11 and maintenance. 213.12 Subd. 7. [ORGANIZATION.] Immediately after appointment, 213.13 the library board shall organize by electing one of its number 213.14 as president and one as secretary, and it may appoint other 213.15 officers it finds necessary. 213.16 Subd. 8. [DUTIES.] The library board shall adopt bylaws 213.17 and regulations for the library and for the conduct of its 213.18 business as may be expedient and conformable to law. It shall 213.19 have exclusive control of the expenditure of all money collected 213.20 for it. The library board shall appoint a qualified library 213.21 director and other staff, establish the compensation of 213.22 employees, and remove any of them for cause. The library board 213.23 may contract with the school board, the regional library board, 213.24 or the city in which the library is located to provide 213.25 personnel, fiscal, or administrative services. The contract 213.26 shall state the personnel, fiscal, and administrative services 213.27 and payments to be provided by each party. 213.28 Subd. 9. [CRITERIA.] The library shall meet all 213.29 requirements in statutes and rules applicable to public 213.30 libraries and school media centers. A media supervisor licensed 213.31 by the board of teaching may be the director of the library. 213.32 Public parking, restrooms, drinking water, and other necessities 213.33 shall be easily accessible to library patrons. 213.34 Subd. 10. [REPORT.] The library board shall report to the 213.35 department of children, families, and learning by February 1, 213.36 1999, about the costs of providing the library service and the 214.1 number of patrons served. 214.2 Subd. 11. [EXPIRATION.] This section expires January 31, 214.3 2000. 214.4 Sec. 5. [APPROPRIATIONS.] 214.5 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 214.6 LEARNING.] The sums indicated in this section are appropriated 214.7 from the general fund to the department of children, families, 214.8 and learning for the fiscal years designated. 214.9 Subd. 2. [BASIC SUPPORT GRANTS.] For basic support grants 214.10 according to Minnesota Statutes, sections 134.32 to 134.35: 214.11 $7,819,000 ..... 1998 214.12 $7,819,000 ..... 1999 214.13 The 1998 appropriation includes $781,000 for 1997 and 214.14 $7,038,000 for 1998. 214.15 The 1999 appropriation includes $1,032,000 for 1998 and 214.16 $7,038,000 for 1999. 214.17 Subd. 3. [LIBRARIANS OF COLOR.] For the librarians of 214.18 color program according to Minnesota Statutes, section 134.155: 214.19 $55,000 ..... 1998 214.20 $55,000 ..... 1999 214.21 Any balance in the first year does not cancel but is 214.22 available in the second year. 214.23 Subd. 4. [CHILDREN'S LIBRARY SERVICES GRANTS.] For grants 214.24 for collaborative programs to strengthen library services to 214.25 children, young people, and their families: 214.26 $150,000 ..... 1998 214.27 $150,000 ..... 1999 214.28 Any balance in the first year does not cancel but is 214.29 available in the second year. 214.30 Subd. 5. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 214.31 grants according to Minnesota Statutes, sections 134.353 and 214.32 134.354, to multicounty, multitype library systems: 214.33 $865,000 ..... 1998 214.34 $903,000 ..... 1999 214.35 The 1998 appropriation includes $52,000 for 1997 and 214.36 $813,000 for 1998. 215.1 The 1999 appropriation includes $90,000 for 1998 and 215.2 $813,000 for 1999. 215.3 Subd. 6. [REGIONAL PUBLIC LIBRARY SYSTEMS.] For grants to 215.4 regional public library systems for outreach and direct library 215.5 services to children and families: 215.6 $250,000 ..... 1998 215.7 $250,000 ..... 1999 215.8 In each year $63,000 is for the Metropolitan Library 215.9 Services Agency and the remainder is for $17,000 to each of the 215.10 other 11 regional public library systems. 215.11 Subd. 7. [LIBRARY PILOT PROJECT.] For a grant for the 215.12 library pilot project under section 4: 215.13 $25,000 ..... 1998 215.14 Any balance in the first year does not cancel but is 215.15 available in the second year. 215.16 Sec. 6. [REPEALER.] 215.17 Minnesota Statutes 1996, section 134.34, subdivision 4a, is 215.18 repealed. 215.19 Sec. 7. [EFFECTIVE DATE.] 215.20 (a) Section 4 is effective in the territory located within 215.21 independent school district No. 319, except Keewatin, the day 215.22 after compliance with Minnesota Statutes, section 645.021, 215.23 subdivision 3, by the last of all the governing bodies for the 215.24 cities, towns, and unorganized townships. For the unorganized 215.25 townships, the governing body is the Itasca county board. 215.26 (b) If this act is enacted on or after July 1, 1997, all 215.27 sections in this article except for those sections listed in 215.28 paragraph (a) are effective the day following final enactment. 215.29 ARTICLE 9 215.30 TECHNOLOGY 215.31 Section 1. Minnesota Statutes 1996, section 124.91, 215.32 subdivision 5, is amended to read: 215.33 Subd. 5. [INTERACTIVE TELEVISION.] (a) A school district 215.34 with its central administrative office located within economic 215.35 development region one, two, three, four, five, six, seven, 215.36 eight, nine, and ten may apply to the commissioner of children, 216.1 families, and learning for ITV revenue up to the greater of .5 216.2 percent of the adjusted net tax capacity of the district or 216.3 $25,000 for. Eligible interactive television expenditures 216.4 include the construction, maintenance, and lease costs of an 216.5 interactive television system for instructional purposes. An 216.6 eligible school district that has completed the construction of 216.7 its interactive television system may also purchase computer 216.8 hardware and software used primarily for instructional purposes 216.9 and access to the Internet provided that its total expenditures 216.10 for interactive television maintenance and lease costs and for 216.11 computer hardware and software under this subdivision do not 216.12 exceed its interactive television revenue for fiscal year 1998. 216.13 The approval by the commissioner of children, families, and 216.14 learning and the application procedures set forth in subdivision 216.15 1 shall apply to the revenue in this subdivision. In granting 216.16 the approval, the commissioner must consider whether the 216.17 district is maximizing efficiency through peak use and off-peak 216.18 use pricing structures. 216.19 (b) To obtain ITV revenue, a district may levy an amount 216.20 not to exceed the district's ITV revenue times the lesser of one 216.21 or the ratio of: 216.22 (1) the quotient derived by dividing the adjusted net tax 216.23 capacity of the district for the year before the year the levy 216.24 is certified by the actual pupil units in the district for the 216.25 year to which the levy is attributable; to 216.26 (2) 100 percent of the equalizing factor as defined in 216.27 section 124A.02, subdivision 8, for the year to which the levy 216.28 is attributable. 216.29 (c) A district's ITV aid is the difference between its ITV 216.30 revenue and the ITV levy. 216.31 (d) The revenue in the first year after reorganization for 216.32 a district that has reorganized under section 122.22, 122.23, or 216.33 122.241 to 122.247 shall be the greater of: 216.34 (1) the revenue computed for the reorganized district under 216.35 paragraph (a), or 216.36 (2)(i) for two districts that reorganized, 75 percent of 217.1 the revenue computed as if the districts involved in the 217.2 reorganization were separate, or 217.3 (ii) for three or more districts that reorganized, 50 217.4 percent of the revenue computed as if the districts involved in 217.5 the reorganization were separate. 217.6 (e) The revenue in paragraph (d) is increased by the 217.7 difference between the initial revenue and ITV lease costs for 217.8 leases that had been entered into by the preexisting districts 217.9 on the effective date of the consolidation or combination and 217.10 with a term not exceeding ten years. This increased revenue is 217.11 only available for the remaining term of the lease. However, in 217.12 no case shall the revenue exceed the amount available had the 217.13 preexisting districts received revenue separately. 217.14 (f) Effective for fiscal year 2000, the revenue under this 217.15 section shall be 75 percent of the amount determined in 217.16 paragraph (a); for fiscal year 2001, 50 percent of the amount in 217.17 paragraph (a); and for fiscal year 2002, 25 percent of the 217.18 amount in paragraph (a). 217.19 (g) This section expires effective for revenue for fiscal 217.20 year 2003, or when leases in existence on the effective date of 217.21 this act expire. 217.22 Sec. 2. Laws 1995, First Special Session chapter 3, 217.23 article 12, section 7, subdivision 1, is amended to read: 217.24 Subdivision 1. [STATE COUNCIL MEMBERSHIP.] The membership 217.25 of the Minnesota education telecommunications council 217.26 established in Laws 1993, First Special Session chapter 2, is 217.27 expanded to include representatives of elementary and secondary 217.28 education. The membership shall consist of three 217.29 representatives from the University of Minnesota; three 217.30 representatives of the board of trustees for Minnesota state 217.31 colleges and universities; one representative of the higher 217.32 education services offices; one representative appointed by the 217.33 private college council; eight representatives selected by the 217.34 commissioner of educationchildren, families, and learning, at 217.35 least one of which must come from each of the six higher 217.36 education telecommunication regions; a representative from the 218.1 information policy office; one membertwo members each from the 218.2 senate and the house of representatives selected by the 218.3 subcommittee on committees of the committee on rules and 218.4 administration of the senate and the speaker of the house, one 218.5 member from each body must be a member of the minority party; 218.6 and three representatives of libraries, one representing 218.7 regional public libraries, one representing multitype libraries, 218.8 and one representing community libraries, selected by the 218.9 governor. The council shall: 218.10 (1) develop a statewide vision and plans for the use of 218.11 distance learning technologies and provide leadership in 218.12 implementing the use of such technologies; 218.13 (2) recommend to the commissioner and the legislature by 218.14 December 15, 1996, a plan for long-term governance and a 218.15 proposed structure for statewide and regional 218.16 telecommunications; 218.17 (3) recommend educational policy relating to 218.18 telecommunications; 218.19 (4) determine priorities for use; 218.20 (5) oversee coordination of networks for post-secondary 218.21 campuses, K-12 education, and regional and community libraries; 218.22 (6) review application for telecommunications access grants 218.23 under Minnesota Statutes, section 124C.74 and recommend to the 218.24 department grants for funding; and218.25 (7) determine priorities for grant funding proposals; and 218.26 (8) work with the information policy office to ensure 218.27 consistency of the operation of the learning network with 218.28 standards of an open system architecture. 218.29 The council shall consult with representatives of the 218.30 telecommunication industry in implementing this section. 218.31 Sec. 3. Laws 1996, chapter 412, article 12, section 11, is 218.32 amended to read: 218.33 Sec. 11. [COOPERATIVE PURCHASING.] 218.34 The department of children, families, and learning shall 218.35 work with the department of administration to make available to 218.36 public libraries, public and nonpublic schools, political 219.1 subdivisions and state agencies, state level contracts from 219.2 multiple sources, including manufacturers and software 219.3 publishers, for the purchase or lease of instructional and 219.4 administrative software, computers, video, and network hardware. 219.5 Notwithstanding Minnesota Statutes, section 471.345, public and 219.6 nonpublic schools, public libraries, and political subdivisions 219.7 may participate in the contractsa negotiated or a sealed bid 219.8 contract legally entered into by the state of Minnesota, if it 219.9 meets their technology purchasing needs. 219.10 Sec. 4. [SITE-BASED TECHNOLOGY TRANSFORMATION LEARNING 219.11 GRANTS.] 219.12 Subdivision 1. [ESTABLISHMENT; PURPOSE.] A matching grant 219.13 program is established for school districts or a group of school 219.14 districts, the residential academies, and the center for arts 219.15 education to fund technology projects in support of learning and 219.16 to increase and enhance closer ties with the community. 219.17 Projects that are eligible for grant funds include, but are not 219.18 limited to, hardware and software purchases or leasing and 219.19 installation, establishment or expansion of local or wide area 219.20 networks, technical support, and training and staff development 219.21 in the use of technology and software. Districts may use the 219.22 funds for youth entrepreneurship and school-to-work activities, 219.23 other collaborative efforts, or year-round open enrollment 219.24 projects. 219.25 Subd. 2. [GOALS.] The goals for this grant program include 219.26 the creation of projects that accomplish one or more of the 219.27 following: 219.28 (1) enhance teaching and learning productivity through the 219.29 use of technology; 219.30 (2) develop individual learner classroom-based teaching and 219.31 learning systems that can be aggregated into site, district, and 219.32 state frameworks; 219.33 (3) develop personalized learning plans designed to give 219.34 learners more responsibility for their learning success and 219.35 change the role of teacher to learning facilitator; 219.36 (4) match and allocate resources; 220.1 (5) create a curriculum environment that is multiplatform; 220.2 (6) provide user and contributor access to electronic 220.3 libraries; 220.4 (7) schedule activities; 220.5 (8) automate progress reports; 220.6 (9) increase collaboration between school district and 220.7 sites, with businesses, higher education institutions, 220.8 libraries, and local government units; 220.9 (10) correlate state-defined outcomes from the graduation 220.10 rule to curriculum for each student; 220.11 (11) increase accountability through a reporting system; 220.12 (12) provide technical support, project evaluation, 220.13 dissemination services, and replication; and 220.14 (13) connect to the Learning Network of Minnesota. 220.15 Subd. 3. [APPLICATION; ELIGIBILITY.] The commissioner of 220.16 children, families, and learning shall establish a process and 220.17 application forms for grant funds. Eligible applicants must, at 220.18 a minimum, identify the specific site needs that the project 220.19 will address, define the project's expected outcomes, and 220.20 provide the source, type, and amounts of all matching funds. To 220.21 be eligible for a site-based technology learning grant, a school 220.22 district must: 220.23 (1) for districts of 5,000 pupils in average daily 220.24 membership or more, have each dollar of grant money matched by 220.25 at least one dollar of school district money, plus at least one 220.26 dollar of either nonstate or nonschool district money, or 220.27 in-kind contributions; 220.28 (2) for districts under 5,000 pupils in average daily 220.29 membership, indicate what attempts to provide a one-to-one match 220.30 have been made prior to the filing of the application; 220.31 (3) agree to disseminate and share information about its 220.32 project; 220.33 (4) provide a benefit to the greater community; and 220.34 (5) maintain any ongoing costs of support for the 220.35 technology project after the initial funding under the grant 220.36 program. 221.1 Districts may count toward their match any eligible 221.2 expenditures made from July 1, 1996. The residential academies 221.3 and the center for arts education do not need to provide a 221.4 matching amount. 221.5 Subd. 4. [COMPETITIVE TECHNOLOGY TRANSFORMATION LEARNING 221.6 GRANTS.] By August 15, 1997, the department of children, 221.7 families, and learning shall establish guidelines and an 221.8 application process. The money must provide technology at 221.9 school sites, including media centers, community education 221.10 sites, the center for arts education, or at the residential 221.11 academies. The department shall consider the level of 221.12 comprehensiveness of a district's technology plan including 221.13 integration of curriculum and graduation standards in awarding 221.14 the grants. 221.15 Sec. 5. [LEARNING AND ELECTRONIC CURRICULUM RESOURCE 221.16 NETWORK.] 221.17 Subdivision 1. [RESOURCE NETWORK.] (a) The commissioner of 221.18 children, families, and learning shall contract with multiple 221.19 vendors to develop a learning resource network that expands the 221.20 electronic curriculum library under Laws 1996, chapter 412, 221.21 article 12, section 15, subdivision 4, paragraph (a), and to 221.22 support the statewide implementation of the graduation standards. 221.23 (b) The expansion shall include a centralized repository of 221.24 curriculum that serves as a resource for teachers and not for 221.25 instructional delivery software. The curriculum contained 221.26 within the library must be aligned with the content standards of 221.27 the graduation rule. Post-secondary institutions may apply for 221.28 the electronic curriculum resource project if the institutions 221.29 make curriculum available through the repository. The 221.30 department of children, families, and learning shall set 221.31 standards to assist in alignment of individualized learning 221.32 plans systems to the centralized repository. The commissioner 221.33 may require a match of local and private funds as part of the 221.34 application process. 221.35 (c) The commissioner shall consult with representatives 221.36 from the public and private sector in the development, use, and 222.1 operation of the learning resource network. The commissioner 222.2 shall compile a list of vendors of software that can be used to 222.3 support implementation of the graduation standards. The 222.4 commissioner shall also identify district-initiated projects and 222.5 facilitate collaboration between districts to develop and adapt 222.6 electronic teaching and administering tools. In addition to the 222.7 electronic curriculum repository vendors, the sites in clauses 222.8 (1) to (5) shall be considered as vendors eligible for grants: 222.9 (1) a project for the Gopher biology shareware at the 222.10 University of Minnesota to make multimedia instructional 222.11 management software available at no cost to both kindergarten 222.12 through grade 12 and higher education faculty throughout the 222.13 state, to train faculty and technology support staff in 222.14 kindergarten through grade 12 districts both on how to use the 222.15 software and database, as well as how to design curricula to 222.16 take full advantage of the software, and to model how students 222.17 and teachers can use computers to enhance teaching and learning; 222.18 (2) a project for the midstate educational district and 222.19 independent school district No. 482, Little Falls, to 222.20 demonstrate student interaction with the local business 222.21 community; 222.22 (3) a project for independent school district Nos. 178, 222.23 Storden-Jeffers; 633, Lamberton; and 638, Sanborn, to establish 222.24 a high school program for remote access for learners to the 222.25 districts' educational network of data and training, commercial 222.26 access for youth entrepreneurship, and commercial access for 222.27 school-to-work programs; 222.28 (4) a project for the University of Minnesota for the Bell 222.29 Museum of Natural History to deliver science curriculum through 222.30 distance learning methods; 222.31 (5) a project for the East Range Secondary Technical Center 222.32 to purchase equipment for classroom and laboratories to 222.33 demonstrate effective integration of technology into the 222.34 curriculum; and 222.35 (6) a project for the Walker Art Center and the Minneapolis 222.36 Institute of Arts for an arts via the Internet project. The 223.1 project will connect, via the Internet, the thousands of objects 223.2 in these two collections to every classroom, library, college 223.3 and university, historical sites, and study centers in the state 223.4 by digitizing the collections. 223.5 Subd. 2. [FOOD SERVICE DATA MANAGEMENT.] The department of 223.6 children, families, and learning shall work with districts to 223.7 identify and help implement computer software to improve 223.8 district's management of meal costs, meal program tracking, and 223.9 government reporting of meals served. The commissioner may 223.10 provide funding for this software under section 4. 223.11 Subd. 3. [INTERNET ACCESS.] The commissioner of children, 223.12 families, and learning shall develop and distribute a model 223.13 policy for school districts concerning appropriate access and 223.14 usage of the Internet with recommended protocols for staff and 223.15 students to follow in order to maximize the educational benefits 223.16 of on-line access and services. 223.17 Subd. 4. [AT HOME-ACCESS FOR CURRICULUM AND TEACHING.] The 223.18 Internet access for Minnesota school projects, the InforMNs 223.19 project, shall be continued for the next biennium. 223.20 Sec. 6. [LEARNING ACADEMY.] 223.21 Subdivision 1. [ESTABLISHMENT.] The commissioner shall 223.22 develop standards and requirements and certify courses for a 223.23 Minnesota learning academy to provide training opportunities for 223.24 educators, administrators, and librarians in the use of 223.25 technology and its integration into learning activities for 223.26 meeting the educational needs of all students. Only certified 223.27 classes may be used to fulfill the requirements of the learning 223.28 academy. 223.29 Subd. 2. [DEVELOPMENT OF THE LEARNING ACADEMY.] To develop 223.30 the learning academy, the commissioner shall consult with 223.31 representatives of public schools, higher education, teacher 223.32 organizations, students, private business, state agencies, 223.33 libraries, and political subdivisions to do the following: 223.34 (1) set measures for teacher training opportunities on 223.35 technical skills and technology integration skills; 223.36 (2) identify and establish outcomes for a series of 224.1 training courses that provide for technical skills and 224.2 technology classroom integration skills; 224.3 (3) identify existing education organizations, public, or 224.4 private institutions to develop and provide training courses; 224.5 (4) evaluate prerequisites for the classroom integration 224.6 skills course; 224.7 (5) certify or decertify classes and courses for inclusion 224.8 in or exclusion from the learning academy; and 224.9 (6) coordinate and make certified classes and courses 224.10 available to eligible participants. 224.11 Subd. 3. [FUNDING.] The commissioner shall use available 224.12 appropriations to provide start-up and initial operating 224.13 subsidies for the learning academy sites. Appropriated funds 224.14 may also be used to partially subsidize costs of attendees of 224.15 the academy. 224.16 Sec. 7. [LIBRARY SITE TECHNOLOGY GRANTS.] 224.17 Subdivision 1. [ESTABLISHMENT; PURPOSE.] A matching grant 224.18 program is established to fund library site technology grants. 224.19 The grants are available to public or school library sites or to 224.20 a partnership of library sites. Recipients shall use grant 224.21 proceeds for technology projects that are consistent with 224.22 technology plans and the LDS/MINITEX Joint Standards and 224.23 Guidelines for Automated Library Systems. The grants shall fund 224.24 projects to expand and integrate technology into library 224.25 operations and increase public access to technology by: 224.26 (1) converting school media center bibliographic records 224.27 into a standard format; 224.28 (2) loading school library site media records into 224.29 regional, public, or multicounty, multitype library systems or 224.30 other appropriate library networks; 224.31 (3) upgrading and increasing database development; and 224.32 (4) improving library staff use of networked library 224.33 resources at library sites throughout the regional multitype 224.34 cooperatives. 224.35 Subd. 2. [APPLICATION; ELIGIBILITY.] The commissioner of 224.36 children, families, and learning shall establish a process and 225.1 application forms for library sites to apply for grant funds. 225.2 Libraries must describe how they will cooperate with schools. 225.3 An applicant must submit a technology plan with the 225.4 application. Eligible applicants must, at a minimum, describe 225.5 how the proposed project is consistent with the technology plan; 225.6 describe how it ensures interoperability of hardware, software, 225.7 and telecommunication; identify the specific site needs that the 225.8 project will address; define the project's expected outcomes; 225.9 and provide the source, type, and amounts of all matching 225.10 funds. To be eligible for a site-based technology learning 225.11 grant, a library site must: 225.12 (1) be a school library, a public library, or a partnership 225.13 of public and school libraries; 225.14 (2) have each dollar of grant money matched by at least $1 225.15 of library site money, including in-kind contributions; 225.16 (3) agree to disseminate and share information about its 225.17 project; 225.18 (4) provide a benefit to the greater community; and 225.19 (5) maintain any ongoing costs of support for the 225.20 technology project after the initial funding under the grant 225.21 program. 225.22 Subd. 3. [GRANT AWARD.] The commissioner shall consult 225.23 with representatives of the public and private sectors in 225.24 establishing criteria and awarding site-based technology 225.25 learning grants. 225.26 Sec. 8. [REFURBISHED COMPUTER PROGRAM.] 225.27 The commissioner of children, families, and learning shall 225.28 establish a program to refurbish donated computers to increase 225.29 the number of multimedia computers in Minnesota schools. In 225.30 establishing the program, the commissioner shall work with the 225.31 commissioners of administration and corrections, and the office 225.32 of technology. The program must be implemented in conjunction 225.33 with the education technology improvement clearinghouses under 225.34 Minnesota Statutes, section 121.95, and in partnership with 225.35 business, nonprofit organizations, and institutions of higher 225.36 education. The commissioner must consider the most 226.1 cost-effective approach in allocating funds for computer 226.2 recycling or refurbishing. The program must: 226.3 (1) establish the number of multimedia computers to be 226.4 refurbished by July 1, 2000; 226.5 (2) establish partnerships with nonprofit or business 226.6 organizations to solicit donations; 226.7 (3) develop an agreement with the commissioner of 226.8 corrections to facilitate computers in Minnesota correctional 226.9 institutions with procedures to minimize security risks; 226.10 (4) promote the program to public and nonpublic schools; 226.11 and 226.12 (5) develop plans to equitably distribute computers to 226.13 public and nonpublic schools and ensure proper recycling of 226.14 unsuitable equipment. 226.15 Sec. 9. [TELECOMMUNICATIONS TECHNOLOGY PLAN.] 226.16 The department of children, families, and learning shall 226.17 develop criteria for approving telecommunications technology 226.18 plans developed by school sites, school districts, or libraries 226.19 to enable them to obtain telecommunications discounts provided 226.20 under federal law. The department shall take actions necessary 226.21 to enable all Minnesota schools and libraries to apply for 226.22 discounts and federal universal service support available 226.23 January 1, 1998. 226.24 Sec. 10. [YEAR 2000 READY.] 226.25 The commissioner of children, families, and learning shall 226.26 ensure that any computer software or hardware that is purchased 226.27 with money appropriated in this bill must be year 2000 ready. 226.28 Sec. 11. [ADDITIONAL TECHNOLOGY REVENUE.] 226.29 For fiscal year 1998 only, the allowance in Minnesota 226.30 Statutes, section 124A.22, subdivision 10, paragraph (a), is 226.31 increased by: 226.32 (1) $24 per pupil unit; or 226.33 (2) the lesser of $25,000 or $80 per pupil unit. 226.34 Revenue received under this section must be used according 226.35 to Minnesota Statutes, section 124A.22, subdivision 11, clauses 226.36 (15), (18), (19), (23), and (24). 227.1 Sec. 12. [APPROPRIATIONS.] 227.2 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 227.3 LEARNING.] The sums indicated in this section are appropriated, 227.4 unless otherwise indicated, from the general fund to the 227.5 department of children, families, and learning for the fiscal 227.6 years designated. The appropriations in subdivisions 6 and 7 227.7 are one-time appropriations only. 227.8 Subd. 2. [TELECOMMUNICATIONS ACCESS GRANTS.] For grants to 227.9 school districts and regional public library systems to 227.10 establish telecommunication connections according to Minnesota 227.11 Statutes, section 124C.74: 227.12 $13,000,000 ..... 1998 227.13 $10,000,000 ..... 1999 227.14 Any balance in the first year does not cancel but is 227.15 available in the second year. 227.16 This amount shall not be included as part of the base for 227.17 fiscal year 2000-2001. 227.18 In allocating grant funds, the council, as appropriate, may 227.19 consider expenditures by district made from July 1, 1995. 227.20 Subd. 3. [SITE-BASED TECHNOLOGY TRANSFORMATION LEARNING 227.21 GRANTS.] For grants under section 4: 227.22 $14,000,000 ..... 1998 227.23 Of this amount $300,000 is for an open enrollment 227.24 year-round technology project in independent school district No. 227.25 138, North Branch. 227.26 This appropriation is available until June 30, 1999. 227.27 Subd. 4. [LIBRARY SITE TECHNOLOGY GRANT PROGRAM.] For 227.28 one-time library site grants under section 7: 227.29 $3,500,000 ..... 1998 227.30 This appropriation is available until June 30, 1999. 227.31 Subd. 5. [COMPUTER REFURBISHMENT PROGRAM.] For the 227.32 multimedia computer refurbishment program under section 8: 227.33 $6,000,000 ..... 1998 227.34 The commissioner may use up to $250,000 of this amount for 227.35 the education technology improvement clearinghouses under 227.36 Minnesota Statutes, section 121.95. 228.1 The commissioner may use all or part of this appropriation 228.2 for an agreement with the commissioner of corrections to 228.3 establish refurbishment centers at one or more correctional 228.4 institutions. 228.5 These funds are available until June 30, 2000. 228.6 Subd. 6. [ELECTRONIC CURRICULUM RESOURCE.] For support of 228.7 electronic curriculum development: 228.8 $4,000,000 ..... 1998 228.9 Of this amount, $2,700,000 is for the electronic curriculum 228.10 resource under section 5, $1,000,000 of which is for the 228.11 collaborative arts project in section 5, subdivision 1, 228.12 paragraph (c), clause (5). 228.13 Of this amount, $300,000 is for the purposes of the Gopher 228.14 Biology Shareware Project under section 5, subdivision 1, 228.15 paragraph (c), clause (1). 228.16 Subd. 7. [UNIVERSITY OF MINNESOTA; BELL MUSEUM.] For a 228.17 grant to the University of Minnesota for the Bell Museum of 228.18 Natural History to deliver science curriculum through distance 228.19 learning methods under section 5, subdivision 1, paragraph (c), 228.20 clause (3): 228.21 $500,000 ..... 1998 228.22 $500,000 ..... 1999 228.23 Subd. 8. [INTERACTIVE TELEVISION (ITV) AID.] For 228.24 interactive television (ITV) aid under Minnesota Statutes, 228.25 section 124.91, subdivision 5: 228.26 $4,030,000 ..... 1998 228.27 $4,052,000 ..... 1999 228.28 The 1998 appropriation includes $384,000 for 1997 and 228.29 $3,646,000 for 1998. 228.30 The 1999 appropriation includes $405,000 for 1998 and 228.31 $3,647,000 for 1999. 228.32 Subd. 9. [INSTRUCTIONAL TRANSFORMATION THROUGH TECHNOLOGY 228.33 GRANTS.] For grants according to Laws 1995, First Special 228.34 Session chapter 3, article 12, section 8: 228.35 $ 1,000,000 ..... 1998 228.36 This appropriation is available until June 30, 1999. 229.1 Subd. 10. [ADDITIONAL OPERATING CAPITAL.] For a one-time 229.2 increase in operating capital according to section 11: 229.3 $25,000,000 ..... 1998 229.4 Subd. 11. [LEARNING ACADEMY.] For training and staff 229.5 development according to section 6: 229.6 $2,000,000 ..... 1998 229.7 This appropriation is available until June 30, 1999. 229.8 Subd. 12. [TECHNOLOGY ENHANCEMENT; RESIDENTIAL ACADEMIES.] 229.9 For technology improvements at the Minnesota state academies: 229.10 $500,000 ..... 1998 229.11 $500,000 ..... 1999 229.12 The appropriation is for implementing the Minnesota state 229.13 academies' technology plan including completion of a local area 229.14 network; installation of ten technology laboratories, classroom 229.15 work stations, and additional hardware and software; purchases 229.16 of large-screen monitors, speech synthesizers, screen-reader 229.17 software, and braille display; and technology support and 229.18 maintenance to assist the academies in fulfilling their 229.19 educational mission. 229.20 Any balance in the first year does not cancel but is 229.21 available in the second year. 229.22 Subd. 13. [REGIONAL MANAGEMENT INFORMATION CENTERS.] The 229.23 sum indicated in this subdivision is appropriated from the 229.24 general fund to the office of technology for the fiscal year 229.25 designated. For grants to regional management information 229.26 centers under Minnesota Statutes, section 121.935, for the 229.27 transition period in their technology uses and consolidation of 229.28 processing needs: 229.29 $978,000 ..... 1998 229.30 This appropriation is available until June 30, 1999. 229.31 Sec. 13. [REPEALER.] 229.32 (a) Minnesota Statutes 1996, section 124C.74, is repealed 229.33 effective July 1, 1999. 229.34 (b) Minnesota Statutes 1996, section 134.46, is repealed. 229.35 Sec. 14. [EFFECTIVE DATE.] 229.36 If this act is enacted on or after July 1, 1997, sections 1 230.1 to 13 are effective the day following final enactment. 230.2 ARTICLE 10 230.3 STATE AGENCIES 230.4 Section 1. Minnesota Statutes 1996, section 128A.02, is 230.5 amended by adding a subdivision to read: 230.6 Subd. 7. [GRANTS.] The state board, through the chief 230.7 administrators of the academies, may apply for all competitive 230.8 grants administered by agencies of the state and other 230.9 government or nongovernment sources. Application may not be 230.10 made for grants over which the board has discretion. 230.11 Sec. 2. Minnesota Statutes 1996, section 129C.10, 230.12 subdivision 3, is amended to read: 230.13 Subd. 3. [POWERS AND DUTIES OF BOARD.] (a) The board has 230.14 the powers necessary for the care, management, and control of 230.15 the Lola and Rudy Perpich Minnesota center for arts education 230.16 and all its real and personal property. The powers shall 230.17 include, but are not limited to, those listed in this 230.18 subdivision. 230.19 (b) The board may employ and discharge necessary employees, 230.20 and contract for other services to ensure the efficient 230.21 operation of the center for arts education. 230.22 (c) The board may receive and award grants. The board may 230.23 establish a charitable foundation and accept, in trust or 230.24 otherwise, any gift, grant, bequest, or devise for educational 230.25 purposes and hold, manage, invest, and dispose of them and the 230.26 proceeds and income of them according to the terms and 230.27 conditions of the gift, grant, bequest, or devise and its 230.28 acceptance. The board shall adopt internal procedures to 230.29 administer and monitor aids and grants. 230.30 (d) The board may establish or coordinate evening, 230.31 continuing education, extension, and summer programs for 230.32 teachers and pupils. 230.33 (e) The board may identify pupils who have artistic talent, 230.34 either demonstrated or potential, in dance, literary arts, media 230.35 arts, music, theater, and visual arts, or in more than one art 230.36 form. 231.1 (f) The board shall educate pupils with artistic talent by 231.2 providing: 231.3 (1) an interdisciplinary academic and arts program for 231.4 pupils in the 11th and 12th grades. The total number of pupils 231.5 accepted under this clause and clause (2) shall not exceed 300; 231.6 (2) additional instruction to pupils for a 13th grade. 231.7 Pupils eligible for this instruction are those enrolled in 12th 231.8 grade who need extra instruction and who apply to the board, or 231.9 pupils enrolled in the 12th grade who do not meet learner 231.10 outcomes established by the board. Criteria for admission into 231.11 the 13th grade shall not be subject to chapter 14; 231.12 (3) intensive arts seminars for one or two weeks for pupils 231.13 in grades 9 to 12; 231.14 (4) summer arts institutes for pupils in grades 9 to 12; 231.15 (5) artist mentor and extension programs in regional sites; 231.16 and 231.17 (6) teacher education programs for indirect curriculum 231.18 delivery. 231.19 (g) The board may determine the location for the Lola and 231.20 Rudy Perpich Minnesota center for arts education and any 231.21 additional facilities related to the center, including the 231.22 authority to lease a temporary facility. 231.23 (h) The board must plan for the enrollment of pupils on an 231.24 equal basis from each congressional district. 231.25 (i) The board may establish task forces as needed to advise 231.26 the board on policies and issues. The task forces expire as 231.27 provided in section 15.059, subdivision 6. 231.28 (j) The board may request the commissioner of children, 231.29 families, and learning for assistance and services. 231.30 (k) The board may enter into contracts with other public 231.31 and private agencies and institutions for residential and 231.32 building maintenance services if it determines that these 231.33 services could be provided more efficiently and less expensively 231.34 by a contractor than by the board itself. The board may also 231.35 enter into contracts with public or private agencies and 231.36 institutions, school districts or combinations of school 232.1 districts, or service cooperatives to provide supplemental 232.2 educational instruction and services. 232.3 (l) The board may provide or contract for services and 232.4 programs by and for the center for arts education, including a 232.5 store, operating in connection with the center; theatrical 232.6 events; and other programs and services that, in the 232.7 determination of the board, serve the purposes of the center. 232.8 (m) The board may provide for transportation of pupils to 232.9 and from the center for arts education for all or part of the 232.10 school year, as the board considers advisable and subject to its 232.11 rules. Notwithstanding any other law to the contrary, the board 232.12 may charge a reasonable fee for transportation of pupils. Every 232.13 driver providing transportation of pupils under this paragraph 232.14 must possess all qualifications required by the state board of 232.15 education. The board may contract for furnishing authorized 232.16 transportation under rules established by the commissioner of 232.17 children, families, and learning and may purchase and furnish 232.18 gasoline to a contract carrier for use in the performance of a 232.19 contract with the board for transportation of pupils to and from 232.20 the center for arts education. When transportation is provided, 232.21 scheduling of routes, establishment of the location of bus 232.22 stops, the manner and method of transportation, the control and 232.23 discipline of pupils, and any other related matter is within the 232.24 sole discretion, control, and management of the board. 232.25 (n) The board may provide room and board for its pupils. 232.26 If the board provides room and board, it shall charge a 232.27 reasonable fee for the room and board. The fee is not subject 232.28 to chapter 14 and is not a prohibited fee according to sections 232.29 120.71 to 120.76. 232.30 (o) The board may establish and set fees for services and 232.31 programs without regard to chapter 14. If the board sets fees 232.32 not authorized or prohibited by the Minnesota public school fee 232.33 law, it may do so without complying with the requirements of 232.34 section 120.75, subdivision 1. 232.35 (p) The board may apply for all competitive grants 232.36 administered by agencies of the state and other government or 233.1 nongovernment sources. 233.2 Sec. 3. [APPROPRIATIONS; DEPARTMENT OF CHILDREN, FAMILIES, 233.3 AND LEARNING.] 233.4 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 233.5 LEARNING.] The sums indicated in this section are appropriated 233.6 from the general fund to the department of children, families, 233.7 and learning for the fiscal years designated. 233.8 Subd. 2. [DEPARTMENT.] For the department of children, 233.9 families, and learning: 233.10 $24,360,000 ..... 1998 233.11 $23,978,000 ..... 1999 233.12 (a) Any balance in the first year does not cancel but is 233.13 available in the second year. 233.14 (b) $21,000 each year is from the trunk highway fund. 233.15 (c) $622,000 in 1998 and $627,000 in 1999 is for the 233.16 academic excellence foundation. 233.17 Up to $50,000 each year is contingent upon the match of $1 233.18 in the previous year from private sources consisting of either 233.19 direct monetary contributions or in-kind contributions of 233.20 related goods or services, for each $1 of the appropriation. 233.21 The commissioner of children, families, and learning must 233.22 certify receipt of the money or documentation for the private 233.23 matching funds or in-kind contributions. The unencumbered 233.24 balance from the amount actually appropriated from the 233.25 contingent amount in 1998 does not cancel but is available in 233.26 1999. The amount carried forward must not be used to establish 233.27 a larger annual base appropriation for later fiscal years. 233.28 (d) $207,000 in 1998 and $210,000 in 1999 is for the state 233.29 board of education. 233.30 (e) $230,000 in 1998 and $234,000 in 1999 is for the board 233.31 of teaching. 233.32 (f) The expenditures of federal grants and aids as shown in 233.33 the biennial budget document and its supplements are approved 233.34 and appropriated and shall be spent as indicated. 233.35 (g) The department of children, families, and learning 233.36 shall develop a performance report on the quality of its 234.1 programs and services. The report must be consistent with the 234.2 process specified in Minnesota Statutes, sections 15.90 to 234.3 15.92. The goals, objectives, and measures of this report must 234.4 be developed in cooperation with the chairs of the finance 234.5 divisions of the education committees of the house of 234.6 representatives and senate, the department of finance, and the 234.7 office of legislative auditor. The report must include data to 234.8 indicate the progress of the department in meeting its goals and 234.9 objectives. 234.10 (h) At least $50,000 is to ensure compliance with state and 234.11 federal laws prohibiting discrimination because of race, 234.12 religion, or sex. The department shall use the appropriation to 234.13 provide state-level leadership on equal education opportunities 234.14 which promote elimination of discriminatory practices in the 234.15 areas of race, religion, and sex in public schools and public 234.16 educational agencies under its general supervision and on 234.17 activities including, at least, compliance monitoring and 234.18 voluntary compliance when local school district deficiencies are 234.19 found. 234.20 (i) Notwithstanding Minnesota Statutes, section 15.53, 234.21 subdivision 2, the commissioner of children, families, and 234.22 learning may contract with a school district for a period no 234.23 longer than five consecutive years to work in the development or 234.24 implementation of the graduation rule. The commissioner may 234.25 contract for services and expertise as necessary. The contracts 234.26 are not subject to Minnesota Statutes, sections 16B.06 to 16B.08. 234.27 (j) In preparing the department budget for fiscal years 234.28 2000-2001, the department shall shift all administrative funding 234.29 from aids appropriations into the appropriation for the 234.30 department. 234.31 (k) Reallocations of excesses under Minnesota Statutes, 234.32 section 124.14, subdivision 7, from appropriations within this 234.33 act shall only be made to deficiencies in programs with 234.34 appropriations contained within this act. 234.35 (l) $850,000 each year is for litigation costs and may only 234.36 be used for those purposes. These appropriations are one-time 235.1 only. 235.2 (m) Collaborative efforts between the department of 235.3 children, families, and learning and the office of technology, 235.4 as specified in Minnesota Statutes, section 237A.015, include: 235.5 (1) advising the commissioner of children, families, and 235.6 learning on new and emerging technologies, potential business 235.7 partnerships, and technical standards; 235.8 (2) assisting the commissioner of children, families, and 235.9 learning in the sharing of data between state agencies relative 235.10 to children's programs; and 235.11 (3) as requested by the commissioner of children, families, 235.12 and learning, assisting in collaborative efforts for joint 235.13 prekindergarten through grade 12 and higher education projects, 235.14 including the learning network. 235.15 The commissioner of children, families, and learning shall have 235.16 final approval for prekindergarten through grade 12 programs and 235.17 lifelong learning programs, grant awards, and funding decisions. 235.18 Sec. 4. [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 235.19 CENTER FOR ARTS EDUCATION.] 235.20 The sums indicated in this section are appropriated from 235.21 the general fund to the center for arts education for the fiscal 235.22 years designated: 235.23 $5,541,000 ..... 1998 235.24 $6,054,000 ..... 1999 235.25 Of the fiscal year 1998 appropriation, $154,000 is to fund 235.26 artist and arts organization participation in the education 235.27 residency and education technology projects, $75,000 is for 235.28 school support for the residency project, and $121,000 is for 235.29 further development of the partners: arts and school for 235.30 students (PASS) program, including pilots. Of the fiscal year 235.31 1999 appropriation, $154,000 is to fund artist and arts 235.32 organizations participation in the education residency project, 235.33 $75,000 is for school support for the residency project, and 235.34 $121,000 is to fund the PASS program, including additional 235.35 pilots. The guidelines for the education residency project and 235.36 the pass program shall be developed and defined by the center 236.1 for arts education in cooperation with the Minnesota arts 236.2 board. The Minnesota arts board shall participate in the review 236.3 and allocation process. The center for arts education and the 236.4 Minnesota arts board shall cooperate to fund these projects. 236.5 Any balance in the first year does not cancel but is 236.6 available in the second year. 236.7 Sec. 5. [APPROPRIATIONS; FARIBAULT ACADEMIES.] 236.8 The sums indicated in this section are appropriated from 236.9 the general fund to the department of children, families, and 236.10 learning for the Faribault academies for the fiscal years 236.11 designated: 236.12 $8,910,000 ..... 1998 236.13 $8,908,000 ..... 1999 236.14 Any balance in the first year does not cancel but is 236.15 available in the second year. 236.16 In the next biennial budget, the academies must assess 236.17 their progress in meeting the established performance measures 236.18 for the Faribault academies and inform the legislature on the 236.19 content of that assessment. The information must include an 236.20 assessment of its progress by consumers and employees. 236.21 Sec. 6. [EFFECTIVE DATE.] 236.22 If this act is enacted on or after July 1, 1997, sections 1 236.23 to 5 are effective the day following final enactment. 236.24 ARTICLE 11 236.25 TECHNICAL AND CONFORMING AMENDMENTS 236.26 Section 1. Minnesota Statutes 1996, section 124.155, 236.27 subdivision 2, is amended to read: 236.28 Subd. 2. [ADJUSTMENT TO AIDS.] (a) The amount specified in 236.29 subdivision 1 shall be used to adjust the following state aids 236.30 and credits in the order listed: 236.31 (1) general education aid authorized in sections 124A.23 236.32 and 124B.20; 236.33 (2) secondary vocational aid authorized in section 124.573; 236.34 (3) special education aid authorized in sections 124.32, 236.35 124.3201, and 124.3202; 236.36 (4) secondary vocationalschool-to-work program aid for 237.1 children with a disability authorized in section 124.574; 237.2 (5) aid for pupils of limited English proficiency 237.3 authorized in section 124.273; 237.4 (6) transportation aid authorized in section 124.225; 237.5 (7) community education programs aid authorized in section 237.6 124.2713; 237.7 (8) adult education aid authorized in section 124.26; 237.8 (9) early childhood family education aid authorized in 237.9 section 124.2711; 237.10 (10) capital expenditure aid authorized in sections 237.11 124.243, 124.244, and 124.83; 237.12 (11) school district cooperation aid authorized in section 237.13 124.2727; 237.14 (12) assurance of mastery aid according to section 124.311; 237.15 (13) homestead and agricultural credit aid, disparity 237.16 credit and aid, and changes to credits for prior year 237.17 adjustments according to section 273.1398, subdivisions 2, 3, 4, 237.18 and 7; 237.19 (14) attached machinery aid authorized in section 273.138, 237.20 subdivision 3; 237.21 (15) alternative delivery aid authorized in section 237.22 124.322; 237.23 (16) special education equalization aid authorized in 237.24 section 124.321; 237.25 (17) special education excess cost aid authorized in 237.26 section 124.323; 237.27 (18) learning readiness aid authorized in section 124.2615; 237.28 and 237.29 (19) cooperation-combination aid authorized in section 237.30 124.2725. 237.31 (b) The commissioner of children, families, and learning 237.32 shall schedule the timing of the adjustments to state aids and 237.33 credits specified in subdivision 1, as close to the end of the 237.34 fiscal year as possible. 237.35 Sec. 2. Minnesota Statutes 1996, section 124.321, 237.36 subdivision 1, is amended to read: 238.1 Subdivision 1. [LEVY EQUALIZATION REVENUE.] (a) For fiscal 238.2 years 1996 and later, special education levy equalization 238.3 revenue for a school district, excluding an intermediate school 238.4 district, equals the sum of the following amounts: 238.5 (1) the levy percentage factor for that year times the 238.6 district's special education revenue under section 124.3201; 238.7 plus 238.8 (2) the levy percentage factor for that year times the 238.9 district's special education summer program revenue under 238.10 section 124.3202; plus 238.11 (3) the levy percentage factor for that year times the 238.12 district's special education excess cost revenue under section 238.13 124.323; plus 238.14 (4) the levy percentage factor for that year times the 238.15 district's secondary vocational educationschool-to-work program 238.16 for children with a disability revenue under section 124.574; 238.17 plus 238.18 (5) the levy percentage factor for that year times the 238.19 district's limited English proficiency programs revenue under 238.20 section 124.273. 238.21 Sec. 3. Minnesota Statutes 1996, section 124A.225, 238.22 subdivision 1, is amended to read: 238.23 Subdivision 1. [REVENUE.] Of a district's general 238.24 education revenue an amount equal to the sum of the number of 238.25 elementary fund balance pupils in average daily membership 238.26 defined in section 124.17, subdivision 1h1f, and one-half of 238.27 the number of kindergarten fund balance pupils in average daily 238.28 membership as defined in section 124.17, subdivision 1h1f, 238.29 times .06 for fiscal year 1995 and thereafter times the formula 238.30 allowance must be reserved according to this section. 238.31 Sec. 4. [EFFECTIVE DATE.] 238.32 If this act is enacted on or after July 1, 1997, sections 1 238.33 to 3 are effective the day following final enactment. 238.34 ARTICLE 12 238.35 SCHOOL BUS SAFETY 238.36 Section 1. [121.175] [ADVERTISING ON SCHOOL BUSES.] 239.1 (a) The commissioner, through a competitive process, and 239.2 with the approval of the school bus safety advisory committee 239.3 may contract with advertisers regarding advertising on school 239.4 buses. At a minimum, the contract must prohibit advertising and 239.5 advertising images that: 239.6 (1) solicit the sale of, or promote the use of, alcoholic 239.7 beverages and tobacco products; 239.8 (2) are discriminatory in nature or content; 239.9 (3) imply or declare an endorsement of the product or 239.10 service by the school district; 239.11 (4) contain obscene material; 239.12 (5) are false, misleading, or deceptive; or 239.13 (6) relate to an illegal activity or antisocial behavior. 239.14 (b) Advertisement must meet the following conditions: 239.15 (1) the advertising attached to the school bus does not 239.16 interfere with bus identification under section 169.441; and 239.17 (2) the bus with attached advertising meets the school bus 239.18 equipment standards under sections 169.4501 to 169.4504. 239.19 (c) All buses operated by school districts may be attached 239.20 with advertisements under the state contract. All school 239.21 district contracts shall include a provision for advertisement. 239.22 Each school district shall be reimbursed by the advertiser for 239.23 all costs incurred by the district and its contractors for 239.24 supporting the advertising program, including, but not limited 239.25 to, retrofitting buses, storing advertising, attaching 239.26 advertising to the bus, and related maintenance. 239.27 (d) The commissioner shall hold harmless and indemnify each 239.28 district for all liabilities arising from the advertising 239.29 program. Each district must tender defense of all such claims 239.30 to the commissioner within five days of receipt. 239.31 (e) All revenue from the contract shall be deposited in the 239.32 general fund. 239.33 Sec. 2. Minnesota Statutes 1996, section 123.799, 239.34 subdivision 1, is amended to read: 239.35 Subdivision 1. [RESERVED REVENUE USE.] A district shall 239.36 use the student transportation safety reserved revenue under 240.1 section 124.225, subdivision 7f, for providing student 240.2 transportation safety programs to enhance student conduct and 240.3 safety on the bus or when boarding and exiting the bus. A 240.4 district's student transportation policy must specify the 240.5 student transportation safety activities to be carried out under 240.6 this section. A district's student transportation safety 240.7 reserved revenue may only be used for the following purposes: 240.8 (1) to provide paid adult bus monitors, including training 240.9 and salary costs; 240.10 (2) to provide a volunteer bus monitor program, including 240.11 training costs and the cost of a program coordinator; 240.12 (3) to purchase or lease optional external public address 240.13 systems or video recording cameras for use on buses; and240.14 (4) to purchase new or retrofit existing school buses with 240.15 seatbelts or other occupant restraint systems after consultation 240.16 with and approval by the commissioner of public safety; and 240.17 (4)(5) other activities or equipment that have been 240.18 reviewed by the state school bus safety advisory committee and240.19 approved by the commissioner of public safety. 240.20 Sec. 3. Minnesota Statutes 1996, section 123.7991, 240.21 subdivision 1, is amended to read: 240.22 Subdivision 1. [SCHOOL BUS SAFETY WEEK.] The firstthird 240.23 week of school is designated as school bus safety week. 240.24 A school board may designate one day of school bus safety 240.25 week as school bus driver day. 240.26 Sec. 4. Minnesota Statutes 1996, section 123.7991, 240.27 subdivision 2, is amended to read: 240.28 Subd. 2. [STUDENT TRAINING.] (a) Each school district 240.29 shall provide public school pupils enrolled in grades 240.30 kindergarten through 10 with age-appropriate school bus safety 240.31 training. The training shall be results-oriented and shall 240.32 consist of both classroom instruction and practical training 240.33 using a school bus. Upon completing the training, a student 240.34 shall be able to demonstrate knowledge and understanding of at 240.35 least the following competencies and concepts: 240.36 (1) transportation by school bus is a privilege and not a 241.1 right; 241.2 (2) district policies for student conduct and school bus 241.3 safety; 241.4 (3) appropriate conduct while on the school bus; 241.5 (4) the danger zones surrounding a school bus; 241.6 (5) procedures for safely boarding and leaving a school 241.7 bus; 241.8 (6) procedures for safe street or road crossing; and 241.9 (7) school bus evacuation and other emergency procedures. 241.10 (b) Each nonpublic school located within the district shall 241.11 provide all nonpublic school pupils enrolled in grades 241.12 kindergarten through 10 who are transported by school bus at 241.13 public expense and attend school within the district's 241.14 boundaries with training as required in paragraph (a). The 241.15 school district shall make a bus available for the practical 241.16 training if the district transports the nonpublic students. 241.17 Each nonpublic school shall provide the instruction. 241.18 (c) Student school bus safety training shall commence241.19 during school bus safety week.All students enrolled in grades 241.20 kindergarten through 3 who are transported by school bus and are 241.21 enrolled during the first or second week of school must 241.22 demonstrate achievement of the school bus safety training 241.23 competencies by the end of the third week of school. All 241.24 students enrolled in grades 4 through 10 who are transported by 241.25 school bus and are enrolled during the first or second week of 241.26 school must demonstrate achievement of the competencies by the 241.27 end of the sixth week of school. Students enrolled in grades 241.28 kindergarten through 10 who enroll in a school after the second 241.29 week of school and are transported by school bus shall undergo 241.30 school bus safety training and demonstrate achievement of the 241.31 school bus safety competencies within four weeks of the first 241.32 day of attendance. The pupil transportation safety director in 241.33 each district must certify to the commissioner of children, 241.34 families, and learning annually that all students transported by 241.35 school bus within the district have satisfactorily demonstrated 241.36 knowledge and understanding of the school bus safety 242.1 competencies according to this section or provide an explanation 242.2 for a student's failure to demonstrate the competencies. The 242.3 principal or other chief administrator of each nonpublic school 242.4 must certify annually to the public transportation safety 242.5 director of the district in which the school is located that all 242.6 of the school's students transported by school bus at public 242.7 expense have received training. A school district may deny 242.8 transportation to a student who fails to demonstrate the 242.9 competencies, unless the student is unable to achieve the 242.10 competencies due to a disability, or to a student who attends a 242.11 nonpublic school that fails to provide training as required by 242.12 this subdivision. 242.13 (d) A school district and a nonpublic school with students 242.14 transported by school bus at public expense must, to the extent 242.15 possible, provide kindergarten pupils with bus safety training 242.16 before the first day of school. 242.17 (e) A school district and a nonpublic school with students 242.18 transported by school bus at public expense must also provide 242.19 student safety education for bicycling and pedestrian safety, 242.20 for students enrolled in grades kindergarten through 5. 242.21 (f) A school district and a nonpublic school with students 242.22 transported by school bus at public expense must make reasonable 242.23 accommodations for the school bus, bicycle, and pedestrian 242.24 safety training of pupils known to speak English as a second 242.25 language and pupils with disabilities. 242.26 Sec. 5. Minnesota Statutes 1996, section 169.01, 242.27 subdivision 6, is amended to read: 242.28 Subd. 6. [SCHOOL BUS.] "School bus" means a motor vehicle 242.29 used to transport pupils to or from a school defined in section 242.30 120.101, or to or from school-related activities, by the school 242.31 or a school district, or by someone under an agreement with the 242.32 school or a school district. A school bus does not include a 242.33 motor vehicle transporting children to or from school for which 242.34 parents or guardians receive direct compensation from a school 242.35 district, a motor coach operating under charter carrier 242.36 authority, a transit bus providing services as defined in 243.1 section 174.22, subdivision 7, or a vehicle otherwise qualifying 243.2 as a type III vehicle under paragraph (5), when the vehicle is 243.3 properly registered and insured and being driven by an employee 243.4 or agent of a school district for nonscheduled transportation. 243.5 A school bus may be type A, type B, type C, or type D, or type 243.6 III as follows: 243.7 (1) A "type A school bus" is a conversion or body 243.8 constructed upon a van-type compact truck or a front-section243.9 vehicle, with a gross vehicle weight rating of 10,000 pounds or243.10 lessor cutaway front section vehicle with a left-side driver's 243.11 door, designed for carrying more than ten persons. This 243.12 definition includes two classifications: type A-I, with a gross 243.13 vehicle weight rating (GVWR) over 10,000 pounds; and type A-II, 243.14 with a GVWR of 10,000 pounds or less. 243.15 (2) A "type B school bus" is a conversion or body 243.16 constructed and installed upon a van or front-section vehicle 243.17 chassis, or stripped chassis, with a gross vehicle weight rating 243.18 of more than 10,000 pounds, designed for carrying more than ten 243.19 persons. Part of the engine is beneath or behind the windshield 243.20 and beside the driver's seat. The entrance door is behind the 243.21 front wheels. 243.22 (3) A "type C school bus" is a body installed upon a flat 243.23 back cowl chassis with a gross vehicle weight rating of more 243.24 than 10,000 pounds, designed for carrying more than ten 243.25 persons. All of the engine is in front of the windshield and 243.26 the entrance door is behind the front wheels. 243.27 (4) A "type D school bus" is a body installed upon a 243.28 chassis, with the engine mounted in the front, midship or rear, 243.29 with a gross vehicle weight rating of more than 10,000 pounds, 243.30 designed for carrying more than ten persons. The engine may be 243.31 behind the windshield and beside the driver's seat; it may be at 243.32 the rear of the bus, behind the rear wheels, or midship between 243.33 the front and rear axles. The entrance door is ahead of the 243.34 front wheels. 243.35 (5) Type III school buses and type III Head Start buses are 243.36 restricted to passenger cars, station wagons, vans, and buses 244.1 having a maximum manufacturer's rated seating capacity of ten 244.2 people, including the driver, and a gross vehicle weight rating 244.3 of 10,000 pounds or less. In this subdivision, "gross vehicle 244.4 weight rating" means the value specified by the manufacturer as 244.5 the loaded weight of a single vehicle. A "type III school bus" 244.6 and "type III Head Start bus" must not be outwardly equipped and 244.7 identified as a type A, B, C, or D school bus or type A, B, C, 244.8 or D Head Start bus. 244.9 Sec. 6. Minnesota Statutes 1996, section 169.435, 244.10 subdivision 2, is amended to read: 244.11 Subd. 2. [SCHOOL BUS SAFETY ADVISORY COMMITTEE.] (a) The 244.12 commissioner of public safety shall establish the school bus 244.13 safety advisory committee. The commissioner shall provide the 244.14 committee with meeting space and clerical support. The 244.15 commissioner of public safety or the commissioner's designee 244.16 shall chair the committee. The members of the committee also 244.17 shall include: 244.18 (1) the commissioner of children, families, and learning or 244.19 the commissioner's designee; 244.20 (2) the commissioner of human rights or the commissioner's 244.21 designee; 244.22 (3) a county or city attorney; 244.23 (4) a representative of the state patrol; 244.24 (5) a school board member; 244.25 (6) a school superintendent; 244.26 (7) two school bus drivers, one representing the 244.27 metropolitan area and one representing greater Minnesota; 244.28 (8) two school transportation contractors, one representing 244.29 the metropolitan areas and one representing greater Minnesota; 244.30 (9) two school transportation safety directors, one 244.31 representing the metropolitan area and one representing greater 244.32 Minnesota; and 244.33 (10) five public members, including at least four parents 244.34 of children who ride a school bus, among them a parent of a 244.35 child with a disability. The public members shall be 244.36 geographically representative. 245.1 The commissioner of public safety, in consultation with the 245.2 commissioner of children, families, and learning, shall appoint 245.3 the members listed in clauses (3) to (9). The governor shall 245.4 appoint the public members in clause (10). Terms, compensation, 245.5 and removal of committee members shall be according to section 245.6 15.059. The committee shall meet quarterly or as required by 245.7 the chair. 245.8 (b) The duties of the committee shall include: 245.9 (1) an annual report by January 15 to the governor and the 245.10 education committees of the legislature, including 245.11 recommendations for legislative action when needed, on student 245.12 bus safety education, school bus equipment requirements and 245.13 inspection, including seat belts and other occupant restraint 245.14 systems, bus driver licensing, training, and qualifications, bus 245.15 operation procedures, student behavior and discipline, rules of 245.16 the road, school bus safety education for the public, or any 245.17 other aspects of school transportation safety the committee 245.18 considers appropriate; 245.19 (2) a quarterly review of all school transportation 245.20 accidents, crimes, incidents of serious misconduct, incidents 245.21 that result in serious personal injury or death, and bus driver 245.22 dismissals for cause; and 245.23 (3) periodic review of school district comprehensive 245.24 transportation safety policies. 245.25 (c) The committee expires June 30, 2001. 245.26 Sec. 7. Minnesota Statutes 1996, section 169.443, 245.27 subdivision 3, is amended to read: 245.28 Subd. 3. [WHEN SIGNALS NOT USED.] School bus drivers shall 245.29 not activate the prewarning flashing amber signals or flashing 245.30 red signals and shall not use the stop arm signal: 245.31 (1) in special school bus loading areas where the bus is 245.32 entirely off the traveled portion of the roadway and where no 245.33 other motor vehicle traffic is moving or is likely to be moving 245.34 within 20 feet of the bus; 245.35 (2) in residence districts or business districts, as245.36 defined in section 169.01, of home rule or statutory citieswhen 246.1 directed not to do so, in writing, by the local school 246.2 administratorboard; 246.3 (3) when a school bus is being used on a street or highway 246.4 for purposes other than the actual transportation of school 246.5 children to or from school or a school-approved activity, except 246.6 as provided in subdivision 8; 246.7 (4) at railroad grade crossings; and 246.8 (5) when loading and unloading people while the bus is 246.9 completely off the traveled portion of a separated, one-way 246.10 roadway that has adequate shoulders. The driver shall drive the 246.11 bus completely off the traveled portion of this roadway before 246.12 loading or unloading people. 246.13 Sec. 8. Minnesota Statutes 1996, section 169.447, 246.14 subdivision 6, is amended to read: 246.15 Subd. 6. [OVERHEAD BOOK RACKS; STORAGE COMPARTMENTS.] 246.16 Types A, B, C, and DSchool buses may be equipped with padded, 246.17 permanent overhead book racks that do not hang over the center 246.18 aisle of the bus. School buses manufactured after January 1, 246.19 1998, may also be equipped with interior overhead storage 246.20 compartments provided they meet the requirements of the 1995 246.21 "National Standards for School Buses and School Bus Operations." 246.22 Sec. 9. Minnesota Statutes 1996, section 169.4501, 246.23 subdivision 1, is amended to read: 246.24 Subdivision 1. [NATIONAL STANDARDS ADOPTED.] Except as 246.25 provided in sections 169.4502 and 169.4503, the construction, 246.26 design, equipment, and color of types A, B, C, and D school 246.27 buses used for the transportation of school children shall meet 246.28 the requirements of the "bus chassis standards" and "bus body 246.29 standards" in the 19901995 revised edition of the "National 246.30 Standards for School Buses and School Bus Operations" adopted by 246.31 the EleventhTwelfth National Conference on School 246.32 Transportation and published by the National Safety Council. 246.33 Except as provided in section 169.4504, the construction, 246.34 design, and equipment of types A, B, C, and D school buses used 246.35 for the transportation of students with disabilities also shall 246.36 meet the requirements of the "specially equipped school bus 247.1 standards" in the 19901995 National Standards for School Buses 247.2 and School Bus Operations. The "bus chassis standards," "bus 247.3 body standards," and "specially equipped school bus standards" 247.4 sections of the 19901995 revised edition of the "National 247.5 Standards for School Buses and School Bus Operations" are 247.6 incorporated by reference in this chapter. 247.7 Sec. 10. Minnesota Statutes 1996, section 169.4501, 247.8 subdivision 2, is amended to read: 247.9 Subd. 2. [APPLICABILITY.] (a) The standards adopted in 247.10 this section and sections 169.4502 and 169.4503, govern the 247.11 construction, design, equipment, and color of school buses used 247.12 for the transportation of school children, when owned and 247.13 operated by a school or privately owned and operated under a 247.14 contract with a school, and these standards must be made a part 247.15 of that contract by reference. Each school, its officers and 247.16 employees, and each person employed under the contract is 247.17 subject to these standards. 247.18 (b) The standards apply to school buses manufactured after 247.19 December 31, 19941997. Buses complying with these standards 247.20 when manufactured need not comply with standards established 247.21 later except as specifically provided for by law. 247.22 (c) A school bus manufactured on or before December 31, 247.23 19941997, must conform to the Minnesota standards in effect on 247.24 the date the vehicle was manufactured except as specifically 247.25 provided for in law. 247.26 (d) A new bus body may be remounted on a used chassis 247.27 provided that the remounted vehicle meets state and federal 247.28 standards for new buses which are current at the time of the 247.29 remounting. Permission must be obtained from the commissioner 247.30 of public safety before the remounting is done. A used bus body 247.31 may not be remounted on a new or used chassis. 247.32 Sec. 11. Minnesota Statutes 1996, section 169.4502, 247.33 subdivision 2, is amended to read: 247.34 Subd. 2. [BRAKES.] The braking system must include an247.35 emergency brake.The braking system must meet federal motor 247.36 vehicle safety standards in effect at the time of manufacture. 248.1 All buses manufactured with air brakes after January 1, 1995,248.2 shall have automatic slack adjusters.248.3 Sec. 12. Minnesota Statutes 1996, section 169.4502, 248.4 subdivision 7, is amended to read: 248.5 Subd. 7. [EXHAUST SYSTEM.] The tailpipe must :248.6 (1) extend to but not more than one inch beyond the bumper248.7 and be mounted outside of the chassis frame rail; or248.8 (2)extend to but not more than one inchtwo inches beyond 248.9 the left side of the bus, behind the driver's compartment. A248.10 type A bus and a type B bus with a gross vehicle weight rating248.11 under 15,000 pounds, shall comply with the manufacturer's248.12 standard. No exhaust pipe may exit beneath an emergency exit,248.13 or, on a type C or type D bus, under the fuel fill location.No 248.14 exhaust pipe shall be reduced in size beyond the muffler. 248.15 Sec. 13. Minnesota Statutes 1996, section 169.4502, 248.16 subdivision 9, is amended to read: 248.17 Subd. 9. [FUEL TANK.] If mounted behind the rear wheels, 248.18 the fuel tank on a vehicle constructed with a power lift unit 248.19 shall be between the frame rails. Fuel tanks for a type A bus248.20 and for a type B bus with a gross vehicle weight rating under248.21 15,000 pounds maymust be manufacturermanufacturer's standard 248.22 and must conform with federal motor vehicle safety standard 248.23 number 301, Code of Federal Regulations, title 49, part 571. 248.24 Sec. 14. Minnesota Statutes 1996, section 169.4502, 248.25 subdivision 11, is amended to read: 248.26 Subd. 11. [TIRES AND RIMS.] The use of multipiece rims or 248.27 tube-type tires is permitted. Radial and bias ply tires shall 248.28 not be used on the same axle. Front tire tread depth shall not 248.29 be less than 4/32 inch in any major tire tread groove. Rear tire 248.30 tread shall not be less than 2/32 inch. Tires must be measured 248.31 in three locations around the tire, in two adjoining grooves. 248.32 No recapped tires shall be used on the front wheels. Recapped 248.33 tires are permitted on the rear wheels. 248.34 Sec. 15. Minnesota Statutes 1996, section 169.4502, is 248.35 amended by adding a subdivision to read: 248.36 Subd. 13. [AIR CLEANER.] The air intake system for diesel 249.1 buses may have an air cleaner restriction indicator installed. 249.2 Sec. 16. Minnesota Statutes 1996, section 169.4502, is 249.3 amended by adding a subdivision to read: 249.4 Subd. 14. [CLUTCH.] A starter interlock may be installed 249.5 to prevent actuation of the starter if the clutch is not 249.6 depressed. 249.7 Sec. 17. Minnesota Statutes 1996, section 169.4502, is 249.8 amended by adding a subdivision to read: 249.9 Subd. 15. [OIL FILTER.] An oil filtration system may be 249.10 used in lieu of an oil filter. 249.11 Sec. 18. Minnesota Statutes 1996, section 169.4503, 249.12 subdivision 1, is amended to read: 249.13 Subdivision 1. [RELATION TO NATIONAL STANDARDS.] The bus 249.14 body standards contained in this section are required in 249.15 addition to those required by sections 169.450169.4501 and 249.16 169.4502. When a Minnesota standard contained in this section 249.17 conflicts with a national standard adopted in section 169.450249.18 169.4501, the Minnesota standard contained in this section is 249.19 controlling. 249.20 Sec. 19. Minnesota Statutes 1996, section 169.4503, 249.21 subdivision 2, is amended to read: 249.22 Subd. 2. [BACKUP WARNING ALARM.] An automatic audible 249.23 backup alarm may be installed. A spring-loaded button in the 249.24 driver's compartment that will temporarily disable the backup 249.25 alarm is allowed for usage in school bus overnight parking lots 249.26 and repair facilities. 249.27 Sec. 20. Minnesota Statutes 1996, section 169.4503, 249.28 subdivision 10, is amended to read: 249.29 Subd. 10. [EMERGENCY EQUIPMENT; FIRE EXTINGUISHERS.] The249.30 fire extinguisher must have at least a 10BC ratingThe bus must 249.31 be equipped with at least one UL-approved pressurized, dry 249.32 chemical fire extinguisher with a total rating of 2A10BC or 249.33 greater. 249.34 Sec. 21. Minnesota Statutes 1996, section 169.4503, 249.35 subdivision 13, is amended to read: 249.36 Subd. 13. [IDENTIFICATION.] (a) Each bus shall, in the 250.1 beltline, identify the school district serviced, or company 250.2 name, or owner of the bus. Numbers necessary for identification 250.3 must appear on the sides and rear of the bus. Symbols or 250.4 letters may be used on the outside of the bus near the entrance 250.5 door for student identification. A manufacturer's nameplate or 250.6 logo may be placed on the side of thebus near the entrance door250.7 and on the rear. 250.8 (b) Effective December 31, 1994, all buses sold must 250.9 display lettering "Unlawful to pass when red lights are 250.10 flashing" on the rear of the bus. The lettering shall be in 250.11 two-inch black letters on school bus yellow background. This 250.12 message shall be displayed directly below the upper window of 250.13 the rear door. On rear engine buses, it shall be centered at 250.14 approximately the same location. Only signs and lettering 250.15 approved or required by state law may be displayed. 250.16 Sec. 22. Minnesota Statutes 1996, section 169.4503, 250.17 subdivision 14, is amended to read: 250.18 Subd. 14. [INSULATION.] (a) Ceilings and wall shall be 250.19 insulated to a minimum of one and one-half inch fiberglass and 250.20 installed so the insulation does not compact or sag. Floor 250.21 insulation must be nominal 19/32 inches thick plywood, or a 250.22 material of equal or greater strength and insulation R value 250.23 that equals or exceeds properties of exterior-type softwood 250.24 plywood, C-D grade as specified in standard issued by the United 250.25 States Department of Commerce. Type A and BA-II buses with a250.26 gross vehicle weight rating under 15,000 poundsmust have a 250.27 minimum of one-half inch plywood. All exposed edges on plywood 250.28 shall be sealed. Every school bus shall be constructed so that 250.29 the noise level taken at the ear of the occupant nearest to the 250.30 primary vehicle noise source shall not exceed 85 dba when tested 250.31 according to procedures in the 19901995 National Standards for 250.32 School Buses and School Bus Operations. 250.33 (b) The underside of metal floor may be undercoated with 250.34 polyurethane floor insulation, foamed in place. The floor 250.35 insulation must be combustion resistant. The authorization in 250.36 this paragraph does not replace the plywood requirement. 251.1 Sec. 23. Minnesota Statutes 1996, section 169.4503, 251.2 subdivision 17, is amended to read: 251.3 Subd. 17. [MIRRORS.] A type B bus with a gross vehicle251.4 weight rating less than 15,000 pounds shall have a minimum of251.5 six-inch by 16-inch mirror. A type B bus with a gross vehicle251.6 weight rating over 15,000 pounds shall have a minimum of a251.7 six-inch by 30-inch mirror.After January 1, 1995, all school 251.8 buses must be equipped with a minimum of two crossover mirrors, 251.9 mounted to the left and right sides of the bus. 251.10 Sec. 24. Minnesota Statutes 1996, section 169.4503, 251.11 subdivision 19, is amended to read: 251.12 Subd. 19. [RUB RAILS.] There shall be one rub rail at the 251.13 base of the skirt of the bus on all type A, excluding van 251.14 conversions, B, C, and D buses. 251.15 Sec. 25. Minnesota Statutes 1996, section 169.4503, 251.16 subdivision 23, is amended to read: 251.17 Subd. 23. [WINDOWS.] Windshield, entrance, and rear 251.18 emergency exit doors must be of approved safety glass. 251.19 Laminated or tempered glass (AS-2 or AS-3) is permitted in all 251.20 other windows. All glass shall be federally approved and marked 251.21 as provided in section 169.74. The windshield may be of uniform 251.22 tint throughout or may have a horizontal gradient band starting 251.23 slightly above the line of vision and gradually decreasing in 251.24 light transmission to 20 percent or less at the top of the 251.25 windshield. The use of tinted glass, as approved by section 251.26 169.71, is permitted on side windows and rear windows except for 251.27 the entrance door, the first window behind the service door, and 251.28 the window to the left of the driver. The window to the left of 251.29 the driver, the upper service door windows, and the window 251.30 immediately behind the entrance door must be thermal glass. The 251.31 window to the left of the driver for type A and Bbuses with a251.32 gross vehicle weight rating under 15,000 poundsneed not be 251.33 thermal glass. 251.34 Sec. 26. Minnesota Statutes 1996, section 169.4503, 251.35 subdivision 24, is amended to read: 251.36 Subd. 24. [WIRING.] If not protected by a grommet, wire252.1 that passes through holes shall be encased in an252.2 abrasive-resistant protective covering.If a master cutoff 252.3 switch is used, it shall not be wired as to kill power to the 252.4 electric brake system. 252.5 Sec. 27. Minnesota Statutes 1996, section 169.4503, is 252.6 amended by adding a subdivision to read: 252.7 Subd. 25. [DRIVER COMPARTMENT.] The driver's seat must be 252.8 a high-back seat. 252.9 Sec. 28. Minnesota Statutes 1996, section 169.4504, 252.10 subdivision 1, is amended to read: 252.11 Subdivision 1. [RELATION TO NATIONAL STANDARDS.] The 252.12 specially equipped school bus standards contained in this 252.13 section are required in addition to those required by section 252.14 169.450169.4501. When a Minnesota standard contained in this 252.15 section conflicts with a national standard adopted in 252.16 section 169.450169.4501, the Minnesota standard contained in 252.17 this section is controlling. 252.18 Sec. 29. Minnesota Statutes 1996, section 169.4504, is 252.19 amended by adding a subdivision to read: 252.20 Subd. 6. [SECUREMENT AND RESTRAINT SYSTEM.] The securement 252.21 and restraint system must be located and installed so that when 252.22 an occupied wheelchair or other mobility aid is secured, the 252.23 installation meets the requirements of the applicable federal 252.24 motor vehicle safety standard. 252.25 Sec. 30. Minnesota Statutes 1996, section 169.452, is 252.26 amended to read: 252.27 169.452 [ACCIDENT AND SERIOUS INCIDENT REPORTING.] 252.28 The department of public safety shall develop uniform 252.29 definitions of a school bus accident, an incident of serious 252.30 misconduct, and an incident that results in personal injury or 252.31 death. The department shall determine what type of information 252.32 on school bus accidents and incidents, including criminal 252.33 conduct, and bus driver dismissals for cause should be collected 252.34 and develop a uniform accident and incident reporting form to 252.35 collect those data, including data relating to type III 252.36 vehicles , statewide. In addition to the form, the department 253.1 shall have an alternative method of reporting that allows school 253.2 districts to use computer technology to provide the required 253.3 information. School districts selected by the commissioner 253.4 shall report the information required by the department using 253.5 either format. A school district must not be charged for 253.6 reporting forms or reporting procedures under this section. 253.7 Data collected under this section shall be analyzed to help 253.8 develop accident, crime, and misconduct prevention programs. 253.9 This section is not subject to chapter 14. 253.10 Sec. 31. Minnesota Statutes 1996, section 171.321, 253.11 subdivision 3, is amended to read: 253.12 Subd. 3. [STUDY OF APPLICANT.] (a) Before issuing or 253.13 renewing a school bus endorsement, the commissioner shall 253.14 conduct a criminal and driver's license records check of the 253.15 applicant. The commissioner may also conduct the check at any 253.16 time while a person is so licensed. The check shall consist of 253.17 a criminal records check of the state criminal records 253.18 repository and a check of the driver's license records system. 253.19 If the applicant has resided in Minnesota for less than five 253.20 years, the check shall also include a criminal records check of 253.21 information from the state law enforcement agencies in the 253.22 states where the person resided during the five years before 253.23 moving to Minnesota, and of the national criminal records 253.24 repository including the criminal justice data communications 253.25 network. The applicant's failure to cooperate with the 253.26 commissioner in conducting the records check is reasonable cause 253.27 to deny an application or cancel a school bus endorsement. The 253.28 commissioner may not release the results of the records check to 253.29 any person except the applicant. 253.30 (b) The commissioner may issue to an otherwise qualified 253.31 applicant a temporary school bus endorsement, effective for no 253.32 more than 120180 days, upon presentation of (1) an affidavit by 253.33 the applicant that the applicant has not been convicted of a 253.34 disqualifying offense and (2) a criminal history check from each 253.35 state of residence for the previous five years. The criminal 253.36 history check may be conducted and prepared by any public or 254.1 private source acceptable to the commissioner. The commissioner 254.2 may reissue the temporary endorsement if the National Criminal 254.3 Records Repository check is timely submitted but not completed 254.4 within the 180-day period. 254.5 Sec. 32. Minnesota Statutes 1996, section 171.3215, 254.6 subdivision 4, is amended to read: 254.7 Subd. 4. [WAIVER OF PERMANENT CANCELLATION.] The 254.8 commissioner of public safety or the commissioner's designee, in 254.9 consultation with the school bus safety advisory committee254.10 division of driver and vehicle services, may waive the permanent 254.11 cancellation requirement of section 171.3215 for a person 254.12 convicted of a nonfelony violation of chapter 152 or a felony 254.13 that is not a violent crime under section 609.152. 254.14 Sec. 33. [APPROPRIATIONS.] 254.15 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES AND 254.16 LEARNING.] The sums indicated in this section are appropriated 254.17 from the general fund to the department of children, families, 254.18 and learning for the fiscal years designated. 254.19 Subd. 2. [LEARNING READINESS; HEAD START PROGRAMS; 254.20 ECFE.] For learning readiness programs; Head Start programs; and 254.21 early childhood family education programs: 254.22 $2,500,000 ..... 1998 254.23 $2,500,000 ..... 1999 254.24 Of this amount, one-third shall be allocated to each 254.25 program. This appropriation shall be proportionally reduced if 254.26 the revenue in any year under Minnesota Statutes 1996, section 254.27 121.175, is less than the appropriation. The commissioner may 254.28 also use part of the appropriation to reimburse districts that 254.29 can demonstrate it incurred excess costs in implementing 254.30 Minnesota Statutes 1996, section 121.175. 254.31 Sec. 34. [REPEALER.] 254.32 Minnesota Statutes 1996, sections 169.4502, subdivision 6; 254.33 169.4503, subdivisions 3, 8, 9, 11, 12, and 22; and 169.454, 254.34 subdivision 11, are repealed. 254.35 Sec. 35. [EFFECTIVE DATE.] 254.36 If this act is enacted on or after July 1, 1997, sections 1 255.1 to 34 are effective the day following final enactment. 255.2 ARTICLE 13 255.3 TAX DEDUCTION AND CREDIT 255.4 Section 1. Minnesota Statutes 1996, section 290.01, 255.5 subdivision 19b, is amended to read: 255.6 Subd. 19b. [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For 255.7 individuals, estates, and trusts, there shall be subtracted from 255.8 federal taxable income: 255.9 (1) interest income on obligations of any authority, 255.10 commission, or instrumentality of the United States to the 255.11 extent includable in taxable income for federal income tax 255.12 purposes but exempt from state income tax under the laws of the 255.13 United States; 255.14 (2) if included in federal taxable income, the amount of 255.15 any overpayment of income tax to Minnesota or to any other 255.16 state, for any previous taxable year, whether the amount is 255.17 received as a refund or as a credit to another taxable year's 255.18 income tax liability; 255.19 (3) the amount paid to others, less the credit allowed 255.20 under section 290.0674, not to exceed $650$1,625 for each 255.21 dependent in grades kindergarten to 6 and $1,000$2,500 for each 255.22 dependent in grades 7 to 12, for tuition, textbooks, and 255.23 transportation of each dependent in attending an elementary or 255.24 secondary school situated in Minnesota, North Dakota, South 255.25 Dakota, Iowa, or Wisconsin, wherein a resident of this state may 255.26 legally fulfill the state's compulsory attendance laws, which is 255.27 not operated for profit, and which adheres to the provisions of 255.28 the Civil Rights Act of 1964 and chapter 363. For the purposes 255.29 of this clause, "tuition" includes fees or tuition as defined in 255.30 section 290.0674, subdivision 1, clause (1). As used in this 255.31 clause, "textbooks" includes books and other instructional 255.32 materials and equipment used in elementary and secondary schools 255.33 in teaching only those subjects legally and commonly taught in 255.34 public elementary and secondary schools in this 255.35 state. Equipment expenses qualifying for deduction includes 255.36 expenses as defined and limited in section 290.0674, subdivision 256.1 1, clause (3). "Textbooks" does not include instructional books 256.2 and materials used in the teaching of religious tenets, 256.3 doctrines, or worship, the purpose of which is to instill such 256.4 tenets, doctrines, or worship, nor does it include books or 256.5 materials for, or transportation to, extracurricular activities 256.6 including sporting events, musical or dramatic events, speech 256.7 activities, driver's education, or similar programs . In order256.8 to qualify for the subtraction under this clause the taxpayer256.9 must elect to itemize deductions under section 63(e) of the256.10 Internal Revenue Code; 256.11 (4) to the extent included in federal taxable income, 256.12 distributions from a qualified governmental pension plan, an 256.13 individual retirement account, simplified employee pension, or 256.14 qualified plan covering a self-employed person that represent a 256.15 return of contributions that were included in Minnesota gross 256.16 income in the taxable year for which the contributions were made 256.17 but were deducted or were not included in the computation of 256.18 federal adjusted gross income. The distribution shall be 256.19 allocated first to return of contributions until the 256.20 contributions included in Minnesota gross income have been 256.21 exhausted. This subtraction applies only to contributions made 256.22 in a taxable year prior to 1985; 256.23 (5) income as provided under section 290.0802; 256.24 (6) the amount of unrecovered accelerated cost recovery 256.25 system deductions allowed under subdivision 19g; 256.26 (7) to the extent included in federal adjusted gross 256.27 income, income realized on disposition of property exempt from 256.28 tax under section 290.491; 256.29 (8) to the extent not deducted in determining federal 256.30 taxable income, the amount paid for health insurance of 256.31 self-employed individuals as determined under section 162(l) of 256.32 the Internal Revenue Code, except that the 25 percent limit does 256.33 not apply. If the taxpayer deducted insurance payments under 256.34 section 213 of the Internal Revenue Code of 1986, the 256.35 subtraction under this clause must be reduced by the lesser of: 256.36 (i) the total itemized deductions allowed under section 257.1 63(d) of the Internal Revenue Code, less state, local, and 257.2 foreign income taxes deductible under section 164 of the 257.3 Internal Revenue Code and the standard deduction under section 257.4 63(c) of the Internal Revenue Code; or 257.5 (ii) the lesser of (A) the amount of insurance qualifying 257.6 as "medical care" under section 213(d) of the Internal Revenue 257.7 Code to the extent not deducted under section 162(1) of the 257.8 Internal Revenue Code or excluded from income or (B) the total 257.9 amount deductible for medical care under section 213(a); and 257.10 (9) the exemption amount allowed under Laws 1995, chapter 257.11 255, article 3, section 2, subdivision 3. 257.12 Sec. 2. Minnesota Statutes 1996, section 290.0671, 257.13 subdivision 1, is amended to read: 257.14 Subdivision 1. [CREDIT ALLOWED.] An individual is allowed 257.15 a credit against the tax imposed by this chapter equal to 15257.16 percenta percentage of the credit for which the individual is 257.17 eligible under section 32 of the Internal Revenue Code. The 257.18 percentage is 15 for individuals without a qualifying child, and 257.19 25 for individuals with at least one qualifying child. For 257.20 purposes of this section, "qualifying child" has the meaning 257.21 given in section 32(c)(3) of the Internal Revenue Code. 257.22 For a nonresident or part-year resident, the credit 257.23 determined under section 32 of the Internal Revenue Code must be 257.24 allocated based on the percentage calculated under section 257.25 290.06, subdivision 2c, paragraph (e). 257.26 For a person who was a resident for the entire tax year and 257.27 has earned income not subject to tax under this chapter, the 257.28 credit must be allocated based on the ratio of federal adjusted 257.29 gross income reduced by the earned income not subject to tax 257.30 under this chapter over federal adjusted gross income. 257.31 Sec. 3. [290.0674] [MINNESOTA EDUCATION CREDIT.] 257.32 Subdivision 1. [CREDIT ALLOWED.] An individual is allowed 257.33 a credit against the tax imposed by this chapter in an amount 257.34 equal to the amount paid for education-related expenses for a 257.35 dependent in kindergarten through grade 12. For purposes of 257.36 this section, "education-related expenses" means: 258.1 (1) fees or tuition for instruction by an instructor under 258.2 section 120.101, subdivision 7, clause (1), (2), (3), (4), or 258.3 (5), for instruction outside the regular school day or school 258.4 year, including tutoring, driver's education taken as part of 258.5 school curriculum, or summer camps, in grade or age appropriate 258.6 curricula that supplement curricula and instruction available 258.7 during the regular school year, that assists a dependent to 258.8 improve knowledge of core curriculum areas or to expand 258.9 knowledge and skills under the graduation rule under section 258.10 121.11, subdivision 7c, and that do not include the teaching of 258.11 religious tenets, doctrines, or worship, the purpose of which is 258.12 to instill such tenets, doctrines, or worship; 258.13 (2) expenses for textbooks, including books and other 258.14 instructional materials and equipment used in elementary and 258.15 secondary schools in teaching only those subjects legally and 258.16 commonly taught in public elementary and secondary schools in 258.17 this state. "Textbooks" does not include instructional books 258.18 and materials used in the teaching of religious tenets, 258.19 doctrines, or worship, the purpose of which is to instill such 258.20 tenets, doctrines, or worship, nor does it include books or 258.21 materials for extracurricular activities including sporting 258.22 events, musical or dramatic events, speech activities, driver's 258.23 education, or similar programs; 258.24 (3) a maximum expense of $200 per family for personal 258.25 computer hardware, excluding single purpose processors, and 258.26 educational software that assists a dependent to improve 258.27 knowledge of core curriculum areas or to expand knowledge and 258.28 skills under the graduation rule under section 121.11, 258.29 subdivision 7c, purchased for use in the taxpayer's home and not 258.30 used in a trade or business regardless of whether the computer 258.31 is required by the dependent's school; and 258.32 (4) the amount paid to others for transportation of a 258.33 dependent attending an elementary or secondary school situated 258.34 in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, 258.35 wherein a resident of this state may legally fulfill the state's 258.36 compulsory attendance laws, which is not operated for profit, 259.1 and which adheres to the provisions of the Civil Rights Act of 259.2 1964 and chapter 363. 259.3 Subd. 2. [LIMITATIONS.] (a) For claimants with income not 259.4 greater than $33,500, the maximum credit allowed is $1,000 per 259.5 child and $2,000 per family. No credit is allowed for 259.6 education-related expenses for claimants with income greater 259.7 than $33,500. For purposes of this section "income" has the 259.8 meaning given in section 290.067, subdivision 2a. In the case 259.9 of a married claimant, a credit is not allowed unless a joint 259.10 income tax return is filed. 259.11 (b) For a nonresident or part-year resident, the credit 259.12 determined under subdivision 1 and the maximum credit amount in 259.13 paragraph (a) must be allocated using the percentage calculated 259.14 in section 290.06, subdivision 2c, paragraph (e). 259.15 Subd. 3. [REDUCTION BY ALTERNATIVE MINIMUM TAX LIABILITY.] 259.16 The amount of the credit allowed must be reduced by the amount 259.17 of the taxpayer's liability under section 290.091, determined 259.18 before the credit allowed by this section is subtracted from 259.19 regular tax liability. 259.20 Subd. 4. [CREDIT TO BE REFUNDABLE.] If the amount of 259.21 credit that the claimant is eligible to receive under this 259.22 section exceeds the claimant's tax liability under this chapter, 259.23 the commissioner shall refund the excess to the claimant. 259.24 Subd. 5. [APPROPRIATION.] An amount sufficient to pay the 259.25 refunds required by this section is appropriated to the 259.26 commissioner from the general fund. 259.27 Sec. 4. [SEVERABILITY CLAUSE.] 259.28 If a court of competent jurisdiction enjoins the 259.29 implementing of any provision in this article or finds any 259.30 provision in this article unconstitutional, the remaining 259.31 sections in this article and the remaining articles in this act 259.32 shall remain valid and shall be given full effect. 259.33 Sec. 5. [EFFECTIVE DATE.] 259.34 Subdivision 1. [CONTINGENCY.] This article is effective 259.35 for tax years beginning after December 31, 1997, if on the basis 259.36 of the November 1997 forecast of general fund revenues and 260.1 expenditures, the commissioner of finance determines that there 260.2 will be a positive unrestricted budgetary general fund balance 260.3 at the close of the biennium after taking into account the costs 260.4 of sections 1 to 3 and after meeting the requirements of 260.5 Minnesota Statutes, section 16A.152, subdivision 2, clause (a). 260.6 Subd. 2. [SUSPENSION.] Minnesota Statutes, section 260.7 16A.152, subdivision 2, clauses (b) and (c), are not to be 260.8 implemented for the forecast of general fund revenues and 260.9 expenditures in November 1997 until sections 1 to 3 are 260.10 implemented. However, if the November 1997 forecast does not 260.11 provide an unrestricted general fund balance adequate to 260.12 implement sections 1 to 3, the provisions of Minnesota Statutes, 260.13 section 16A.152, subdivision 2, clauses (b) and (c), are 260.14 effective.