3rd Engrossment - 80th Legislature (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; appropriating money; amending 1.9 Minnesota Statutes 1996, sections 120.062, 1.10 subdivisions 7 and 9; 120.0621, subdivisions 5a, 5b, 1.11 6, and by adding a subdivision; 120.064, subdivisions 1.12 3, 4, 4a, 5, 8, 11, 20a, and by adding subdivisions; 1.13 120.101, subdivision 5c, and by adding a subdivision; 1.14 120.17, subdivision 3a; 120.181; 121.11, subdivision 1.15 7c, and by adding a subdivision; 121.1115, by adding 1.16 subdivisions; 121.15, by adding subdivisions; 121.155, 1.17 by adding a subdivision; 121.602, subdivisions 1, 2, 1.18 and 4; 121.611; 121.615, subdivisions 2, 3, 5, 6, 7, 1.19 8, 9, and 10; 121.703, subdivision 3; 121.904, 1.20 subdivision 4a; 123.34, by adding a subdivision; 1.21 123.3514, subdivisions 4, 4a, 4c, 4e, 6c, 8, and by 1.22 adding subdivisions; 123.39, subdivision 6; 123.935, 1.23 subdivision 7; 124.155, subdivision 1; 124.17, 1.24 subdivision 4, and by adding a subdivision; 124.193; 1.25 124.195, subdivisions 2, 7, 10, 11, and by adding a 1.26 subdivision; 124.225, subdivisions 1, 3a, 7b, 7d, 7f, 1.27 8a, 10, 13, 14, 15, and 17; 124.226, subdivisions 4, 1.28 9, and 10; 124.2445; 124.2455; 124.248, subdivisions 1 1.29 and 3; 124.2613, subdivisions 3 and 6; 124.2727, 1.30 subdivisions 6a, 6c, and 6d; 124.273, subdivisions 1d, 1.31 1e, 1f, and 5; 124.312, subdivisions 4 and 5; 124.313; 1.32 124.314, subdivisions 1 and 2; 124.3201, subdivisions 1.33 1, 2, 3, and 4; 124.321, subdivision 1; 124.323, 1.34 subdivisions 1 and 2; 124.42, subdivision 4; 124.431, 1.35 subdivisions 2 and 11; 124.45; 124.481; 124.573, 1.36 subdivision 2f; 124.574, subdivisions 1, 2d, 2f, 5, 6, 1.37 and 9; 124.646, subdivision 1; 124.83, subdivisions 1 1.38 and 2; 124.86, subdivision 2, and by adding a 1.39 subdivision; 124.91, subdivisions 1 and 5; 124.912, 1.40 subdivisions 1, 2, and 3; 124.916, subdivisions 1, 2, 1.41 and 3; 124.918, subdivision 6; 124.95, subdivision 2; 1.42 124.961; 124A.03, subdivision 1c; 124A.036, 1.43 subdivisions 5 and 6; 124A.04, subdivision 2; 124A.22, 1.44 subdivisions 1, 2, as amended, 3, 6, 6a, 10, 11, 13b, 1.45 and by adding a subdivision; 124A.225, subdivisions 1 1.46 and 4; 124A.23, subdivisions 1 and 3; 124A.26, 2.1 subdivision 1; 124A.28; 124C.45, subdivision 1a; 2.2 124C.46, subdivisions 1 and 2; 124C.498, subdivision 2.3 2; 125.05, subdivisions 1c and 2; 125.12, subdivision 2.4 14; 126.22, subdivision 2; 126.23, subdivision 1; 2.5 126.77, subdivision 1; 126.82; 127.27, subdivision 10; 2.6 127.282; 128C.02, subdivision 2; 128C.08, subdivision 2.7 5; 134.155, subdivisions 2 and 3; 134.34, subdivision 2.8 4; and 136A.233, by adding a subdivision; Laws 1991, 2.9 chapter 265, article 1, section 30, as amended; Laws 2.10 1992, chapter 499, article 7, section 31; Laws 1995, 2.11 First Special Session chapter 3, article 1, section 2.12 56; article 2, section 52; article 3, section 11, 2.13 subdivisions 1, 2, and 5; article 11, section 21, 2.14 subdivision 3; article 12, section 7, subdivision 1; 2.15 Laws 1996, chapter 412, article 4, section 34, 2.16 subdivision 4; and article 12, sections 8 and 11; 2.17 proposing coding for new law in Minnesota Statutes, 2.18 chapters 120; 121; 124; 126; and 127; repealing 2.19 Minnesota Statutes 1996, sections 121.904, subdivision 2.20 4d; 124.177; 124.225, subdivisions 13, 14, 15, 16, and 2.21 17; 124.226, subdivisions 1, 3, 3a, 6, and 10; 2.22 124.3201, subdivisions 2a and 2b; 124A.22, 2.23 subdivisions 2a, 13, and 13a; 124A.697; 124A.698; 2.24 124A.70; 124A.71; 124A.711; 124A.72; 124A.73; 126.113; 2.25 128B.10; 134.34, subdivision 4a; and 134.46; Laws 2.26 1993, chapter 146, article 5, section 20; Laws 1994, 2.27 chapter 647, article 7, section 18; and Laws 1995, 2.28 First Special Session chapter 3, article 12, section 8. 2.29 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.30 ARTICLE 1 2.31 GENERAL EDUCATION 2.32 Section 1. Minnesota Statutes 1996, section 120.062, 2.33 subdivision 9, is amended to read: 2.34 Subd. 9. [TRANSPORTATION.] (a) If requested by the parent 2.35 of a pupil, the nonresident district shall provide 2.36 transportation within the district. The state shall pay 2.37 transportation aid to the district according to section 124.225. 2.38 The resident district is not required to provide or pay for 2.39 transportation between the pupil's residence and the border of 2.40 the nonresident district. A parent may be reimbursed by the 2.41 nonresident district for the costs of transportation from the 2.42 pupil's residence to the border of the nonresident district if 2.43 the pupil is from a family whose income is at or below the 2.44 poverty level, as determined by the federal government. The 2.45 reimbursement may not exceed the pupil's actual cost of 2.46 transportation or 15 cents per mile traveled, whichever is 2.47 less. Reimbursement may not be paid for more than 250 miles per 2.48 week. 2.49 At the time a nonresident district notifies a parent or 3.1 guardian that an application has been accepted under subdivision 3.2 5 or 6, the nonresident district must provide the parent or 3.3 guardian with the following information regarding the 3.4 transportation of nonresident pupils underthissection:123.39, 3.5 subdivision 6. 3.6(1) a nonresident district may transport a pupil within the3.7pupil's resident district under this section only with the3.8approval of the resident district; and3.9(2) a parent or guardian of a pupil attending a nonresident3.10district under this section may appeal under section 123.39,3.11subdivision 6, the refusal of the resident district to allow the3.12nonresident district to transport the pupil within the resident3.13district.3.14 (b) Notwithstanding paragraph (a) and section 124.225, 3.15 subdivision 8l, transportation provided by a nonresident 3.16 district between home and school for a pupil attending school 3.17 under this section is authorized for nonregular transportation 3.18 revenue under section 124.225, if the following criteria are met: 3.19 (1) the school that the pupil was attending prior to 3.20 enrolling in the nonresident district under this section was 3.21 closed; 3.22 (2) the distance from the closed school to the next nearest 3.23 school in the district that the student could attend is at least 3.24 20 miles; 3.25 (3) the pupil's residence is at least 20 miles from any 3.26 school that the pupil could attend in the resident district; and 3.27 (4) the pupil's residence is closer to the school of 3.28 attendance in the nonresident district than to any school the 3.29 pupil could attend in the resident district. 3.30 Sec. 2. Minnesota Statutes 1996, section 121.904, 3.31 subdivision 4a, is amended to read: 3.32 Subd. 4a. [LEVY RECOGNITION.] (a) "School district tax 3.33 settlement revenue" means the current, delinquent, and 3.34 manufactured home property tax receipts collected by the county 3.35 and distributed to the school district, including distributions 3.36 made pursuant to section 279.37, subdivision 7, and excluding 4.1 the amount levied pursuant to section 124.914, subdivision 1. 4.2 (b) In June of each year, the school district shall 4.3 recognize as revenue, in the fund for which the levy was made, 4.4 the lesser of: 4.5 (1) the May, June, and July school district tax settlement 4.6 revenue received in that calendar year; or 4.7 (2) the sum of the state aids and credits enumerated in 4.8 section 124.155, subdivision 2, which are for the fiscal year 4.9 payable in that fiscal year plus an amount equal to the levy 4.10 recognized as revenue in June of the prior year plus 31 percent 4.11for fiscal year 1996 and thereafterof the amount of the levy 4.12 certified in the prior calendar year according to section 4.13 124A.03, subdivision 2, plus or minus auditor's adjustments, not4.14including levy portions that are assumed by the state; or 4.15(3) 18.1 percent for fiscal year 1996, the percent4.16determined under Laws 1996, chapter 461, section 3, for fiscal4.17year 1997 and that same percent thereafter of the amount of the4.18levy certified in the prior calendar year, plus or minus4.19auditor's adjustments, not including levy portions that are4.20assumed by the state, which remains after subtracting, by fund,4.21the amounts levied for the following purposes:4.22(i) reducing or eliminating projected deficits in the4.23reserved fund balance accounts for unemployment insurance and4.24bus purchases;4.25(ii) statutory operating debt pursuant to section 124.914,4.26subdivision 1;4.27(iii) retirement and severance pay pursuant to sections4.28122.531, subdivision 9, 124.2725, subdivision 15, 124.4945,4.29124.912, subdivision 1, and 124.916, subdivision 3, and Laws4.301975, chapter 261, section 4;4.31(iv) amounts levied for bonds issued and interest thereon,4.32amounts levied for debt service loans and capital loans, amounts4.33levied for down payments under section 124.82, subdivision 3;4.34and4.35(v) amounts levied under section 124.755.4.36Notwithstanding the foregoing, the levy recognition5.1percentage for the referendum levy certified according to5.2section 124A.03, subdivision 2, is 31 percent.5.3 (3)(i) 7.0 percent of the lesser of the amount of the 5.4 general education levy certified in the prior calendar year 5.5 according to section 124A.23, subdivision 2, or the difference 5.6 between the amount of the total general fund levy certified in 5.7 the prior calendar year and the sum of the amounts certified in 5.8 the prior calendar year according to sections 124A.03, 5.9 subdivision 2; 124.315, subdivisions 2, 3, and 4; 124.912, 5.10 subdivisions 2 and 3; 124.916, subdivisions 1, 2, and 3, 5.11 paragraphs (4), (5), and (6); and 124.918, subdivision 6; plus 5.12 (ii) 31 percent of the referendum levy certified in the 5.13 prior calendar year according to section 124A.03, subdivision 2; 5.14 plus 5.15 (iii) the entire amount of the levy certified in the prior 5.16 calendar year according to sections 124.315, subdivision 4; 5.17 124.912, subdivisions 1, paragraph (b), 2, and 3; 124.916, 5.18 subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 5.19 124.918, subdivision 6. 5.20 (c) In July of each year, the school district shall 5.21 recognize as revenue that portion of the school district tax 5.22 settlement revenue received in that calendar year and not 5.23 recognized as revenue for the previous fiscal year pursuant to 5.24 clause (b). 5.25 (d) All other school district tax settlement revenue shall 5.26 be recognized as revenue in the fiscal year of the settlement. 5.27 Portions of the school district levy assumed by the state, 5.28 including prior year adjustments and the amount to fund the 5.29 school portion of the reimbursement made pursuant to section 5.30 273.425, shall be recognized as revenue in the fiscal year 5.31 beginning in the calendar year for which the levy is payable. 5.32 Sec. 3. Minnesota Statutes 1996, section 123.3514, is 5.33 amended by adding a subdivision to read: 5.34 Subd. 3a. [ALTERNATIVE PUPIL.] "Alternative pupil" means 5.35 an 11th or 12th grade student not enrolled in a public school 5.36 district, and includes students attending nonpublic schools and 6.1 students who are home schooled. An alternative pupil is 6.2 considered a pupil for purposes of this section only. An 6.3 alternative pupil must register with the commissioner of 6.4 children, families, and learning before participating in the 6.5 post-secondary enrollment options program. The commissioner 6.6 shall prescribe the form and manner of the registration, in 6.7 consultation with the nonpublic education council under section 6.8 123.935, subdivision 7, and may request any necessary 6.9 information from the alternative pupil. 6.10 Sec. 4. Minnesota Statutes 1996, section 123.3514, 6.11 subdivision 4, is amended to read: 6.12 Subd. 4. [AUTHORIZATION; NOTIFICATION.] Notwithstanding 6.13 any other law to the contrary, an 11th or 12th grade pupil 6.14 enrolled in apublicschool or an American Indian-controlled 6.15 tribal contract or grant school eligible for aid under section 6.16 124.86, except a foreign exchange pupil enrolled in a district 6.17 under a cultural exchange program, may apply to an eligible 6.18 institution, as defined in subdivision 3, to enroll in 6.19 nonsectarian courses offered by that post-secondary 6.20 institution. If an institution accepts a secondary pupil for 6.21 enrollment under this section, the institution shall send 6.22 written notice to the pupil, the pupil's school or school 6.23 district, and the commissioner of children, families, and 6.24 learning within ten days of acceptance. The notice shall 6.25 indicate the course and hours of enrollment of that pupil. If 6.26 the pupil enrolls in a course for post-secondary credit, the 6.27 institution shall notify the pupil about payment in the 6.28 customary manner used by the institution. 6.29 Sec. 5. Minnesota Statutes 1996, section 123.3514, 6.30 subdivision 4a, is amended to read: 6.31 Subd. 4a. [COUNSELING.] To the extent possible, the school 6.32 or school district shall provide counseling services to pupils 6.33 and their parents or guardian before the pupils enroll in 6.34 courses under this section to ensure that the pupils and their 6.35 parents or guardian are fully aware of the risks and possible 6.36 consequences of enrolling in post-secondary courses. The school 7.1 or school district shall provide information on the program 7.2 including who may enroll, what institutions and courses are 7.3 eligible for participation, the decision-making process for 7.4 granting academic credits, financial arrangements for tuition, 7.5 books and materials, eligibility criteria for transportation 7.6 aid, available support services, the need to arrange an 7.7 appropriate schedule, consequences of failing or not completing 7.8 a course in which the pupil enrolls, the effect of enrolling in 7.9 this program on the pupil's ability to complete the required 7.10 high school graduation requirements, and the academic and social 7.11 responsibilities that must be assumed by the pupils and their 7.12 parents or guardian. The person providing counseling shall 7.13 encourage pupils and their parents or guardian to also use 7.14 available counseling services at the post-secondary institutions 7.15 before the quarter or semester of enrollment to ensure that 7.16 anticipated plans are appropriate. 7.17 Prior to enrolling in a course, the pupil and the pupil's 7.18 parents or guardian must sign a form that must be provided by 7.19 the school or school district and may be obtained from a 7.20 post-secondary institution stating that they have received the 7.21 information specified in this subdivision and that they 7.22 understand the responsibilities that must be assumed in 7.23 enrolling in this program. The department of children, 7.24 families, and learning shall, upon request, provide technical 7.25 assistance to a school or school district in developing 7.26 appropriate forms and counseling guidelines. 7.27 Sec. 6. Minnesota Statutes 1996, section 123.3514, 7.28 subdivision 4e, is amended to read: 7.29 Subd. 4e. [COURSES ACCORDING TO AGREEMENTS.] An eligible 7.30 pupil, according to subdivision 4, may enroll in a nonsectarian 7.31 course taught by a secondary teacher or a post-secondary faculty 7.32 member and offered at a secondary school, or another location, 7.33 according to an agreement between a public school board and the 7.34 governing body of an eligible public post-secondary system or an 7.35 eligible private post-secondary institution, as defined in 7.36 subdivision 3. All provisions of this section shall apply to a 8.1 pupil, public school board, school district, and the governing 8.2 body of a post-secondary institution, except as otherwise 8.3 provided. 8.4 Sec. 7. Minnesota Statutes 1996, section 123.3514, 8.5 subdivision 6c, is amended to read: 8.6 Subd. 6c. [FINANCIAL ARRANGEMENTS FOR COURSES PROVIDED 8.7 ACCORDING TO AGREEMENTS.] (a) The agreement between a public 8.8 school board and the governing body of a public post-secondary 8.9 system or private post-secondary institution shall set forth the 8.10 payment amounts and arrangements, if any, from the public school 8.11 board to the post-secondary institution. No payments shall be 8.12 made by the department of children, families, and learning 8.13 according to subdivision 6 or 6b. For the purpose of computing 8.14 state aids for a school district, a pupil enrolled according to 8.15 subdivision 4e shall be counted in the average daily membership 8.16 of the school district as though the pupil were enrolled in a 8.17 secondary course that is not offered in connection with an 8.18 agreement. Nothing in this subdivision shall be construed to 8.19 prohibit a public post-secondary system or private 8.20 post-secondary institution from receiving additional state 8.21 funding that may be available under any other law. 8.22 (b) If a course is provided under subdivision 4e, offered 8.23 at a secondary school, and taught by a secondary teacher, the 8.24 post-secondary system or institution must not require a payment 8.25 from the school board that exceeds the cost to the 8.26 post-secondary institution that is directly attributable to 8.27 providing that course. 8.28 Sec. 8. Minnesota Statutes 1996, section 123.3514, is 8.29 amended by adding a subdivision to read: 8.30 Subd. 6d. [ALTERNATIVE PUPILS FINANCIAL ARRANGEMENTS.] For 8.31 an alternative pupil enrolled in a course or program under this 8.32 section, the department of children, families, and learning 8.33 shall make payments to the eligible institution according to 8.34 subdivision 6. The department shall not make any payments to a 8.35 school district for alternative pupils. 8.36 Sec. 9. Minnesota Statutes 1996, section 123.3514, is 9.1 amended by adding a subdivision to read: 9.2 Subd. 6e. [TUITION AT NONPUBLIC SECONDARY INSTITUTION.] A 9.3 nonpublic secondary institution must proportionately adjust its 9.4 tuition to accurately reflect the time an alternative pupil 9.5 spends in a post-secondary enrollment course or program. 9.6 Sec. 10. Minnesota Statutes 1996, section 123.39, 9.7 subdivision 6, is amended to read: 9.8 Subd. 6. For the purposes of this subdivision, a 9.9 "nonresident pupil" is a pupil who resides in one district, 9.10 defined as the "resident district" and attends school in another 9.11 district, defined as the "nonresident district." 9.12 If requested, a nonresident districtmayshall transport a 9.13 nonresident pupil within its borders and may transport a 9.14 nonresident pupil within the pupil's resident district.A9.15nonresident district may not transport a nonresident pupil on a9.16school district owned or contractor operated school bus within9.17the pupil's resident district without the approval of the9.18resident district under section 120.062.9.19The parent or guardian of a nonresident pupil attending a9.20nonresident district under section 120.062 may submit a written9.21request to the resident district asking that the resident9.22district allow the nonresident district to provide9.23transportation for the pupil within the pupil's resident9.24district. The resident district must approve or disapprove the9.25request, in writing, within 30 days. The parent or guardian may9.26appeal the refusal of the resident district to the commissioner9.27of children, families, and learning. The commissioner must act9.28on the appeal within 30 days.If a nonresident district decides 9.29 to transport a nonresident pupil within the pupil's resident 9.30 district, the nonresident district must notify the pupil's 9.31 resident district of its decision, in writing, prior to 9.32 providing transportation. 9.33 Sec. 11. Minnesota Statutes 1996, section 123.935, 9.34 subdivision 7, is amended to read: 9.35 Subd. 7. [NONPUBLIC EDUCATION COUNCIL.] (a) The 9.36 commissioner shall appoint a 15-member council on nonpublic 10.1 education. The 15 members shall represent various areas of the 10.2 state, represent various methods of providing nonpublic 10.3 education, and shall be knowledgeable about nonpublic 10.4 education. The compensation, removal of members, filling of 10.5 vacancies, and terms are governed by section 15.0575. The 10.6 council shall not expire. The council shall advise the 10.7 commissioner and the state board on issues affecting nonpublic 10.8 education and nonpublic schools. The council may recognize 10.9 educational accrediting agencies, for the sole purpose of 10.10 sections 120.101, 120.102, and 120.103. 10.11 (b) A parent or guardian of a nonpublic school pupil or a 10.12 nonpublic school may file a complaint about services provided 10.13 under sections 123.931 to 123.937 with the nonpublic education 10.14 council. The council may review the complaint and make a 10.15 recommendation for resolution to the commissioner. 10.16 (c) The council shall provide the families of nonpublic 10.17 school pupils in grades 10 and 11 and nonpublic secondary 10.18 schools with information about the post-secondary enrollment 10.19 options program under section 123.3514. 10.20 Sec. 12. Minnesota Statutes 1996, section 124.155, 10.21 subdivision 1, is amended to read: 10.22 Subdivision 1. [AMOUNT OF ADJUSTMENT.] Each year state 10.23 aids and credits enumerated in subdivision 2 payable to any 10.24 school district for that fiscal year shall be adjusted, in the 10.25 order listed, by an amount equal to (1) the amount the district 10.26 recognized as revenue for the prior fiscal year pursuant to 10.27 section 121.904, subdivision 4a, clause (b), minus (2) the 10.28 amount the district recognizes as revenue for the current fiscal 10.29 year pursuant to section 121.904, subdivision 4a, clause (b). 10.30 For the purposes of making the aid adjustment under this 10.31 subdivision, the amount the district recognizes as revenue for 10.32 either the prior fiscal year or the current fiscal year pursuant 10.33 to section 121.904, subdivision 4a, clause (b), shall not 10.34 include any amount levied pursuant to sections124.226,10.35subdivision 9,124.912, subdivisions 2 and 3, or a successor 10.36 provision only for those districts affected, 124.916, 11.1 subdivisions 1and, 2, and 3, paragraphs 4, 5, and 6, 124.918, 11.2 subdivision 6, and 124A.03, subdivision 2; and Laws 1992,11.3chapter 499, articles 1, section 20, and 6, section 36. Payment 11.4 from the permanent school fund shall not be adjusted pursuant to 11.5 this section. The school district shall be notified of the 11.6 amount of the adjustment made to each payment pursuant to this 11.7 section. 11.8 Sec. 13. Minnesota Statutes 1996, section 124.17, 11.9 subdivision 4, is amended to read: 11.10 Subd. 4. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 11.11 enrolled in a learning year programaccording tounder section 11.12 121.585, an area learning centeraccording tounder sections 11.13 124C.45 and 124C.46, or an alternative program approved by the 11.14 commissioner, for more than 1,020 hours in a school year for a 11.15 secondary studentand for, more than 935 hours in a school year 11.16 for an elementary student, or more than 425 hours in a school 11.17 year for a kindergarten student without a disability, that pupil 11.18 may be counted as more than one pupil in average daily 11.19 membership. The amount in excess of one pupil must be 11.20 determined by the ratio of the number of hours of instruction 11.21 provided to that pupil in excess of: (i) the greater of 1,020 11.22 hours or the number of hours required for a full-time secondary 11.23 pupil in the district to 1,020 for a secondary pupiland of; 11.24 (ii) the greater of 935 hours or the number of hours required 11.25 for a full-time elementary pupil in the district to 935 for an 11.26 elementary pupil in grades 1 through 6; and (iii) the greater of 11.27 425 hours or the number of hours required for a full-time 11.28 kindergarten student in the district for a kindergarten student 11.29 without a disability. Hours that occur after the close of the 11.30 instructional year in June shall be attributable to the 11.31 following fiscal year. 11.32 (b)(i) To receive general education revenue for a pupil in 11.33 an alternative program that has an independent study component, 11.34 a school district must meet the requirements in this paragraph. 11.35 The school district must develop with the pupil a continual 11.36 learning plan for the pupil. A district must allow a minor 12.1 pupil's parent or guardian to participate in developing the 12.2 plan, if the parent or guardian wants to participate. The plan 12.3 must identify the learning experiences and expected outcomes 12.4 needed for satisfactory credit for the year and for graduation. 12.5 The plan must be updated each year. Each school district that 12.6 has a state-approved public alternative program must reserve 12.7 revenue in an amount equal to at least 90 percent of the 12.8 district's per pupil general education revenue times the number 12.9 of pupils attending a state-approved public alternative 12.10 program. The amount of reserved revenue available under this 12.11 subdivision may only be spent for program costs associated with 12.12 the state-approved public alternative program. 12.13 (ii) General education revenue for a pupil in an approved 12.14 alternative program without an independent study component must 12.15 be prorated for a pupil participating for less than a full year, 12.16 or its equivalent. Each school district that has a 12.17 state-approved public alternative program must reserve revenue 12.18 in an amount equal to at least 90 percent of the district's per 12.19 pupil general education revenue times the number of pupils 12.20 attending a state-approved public alternative program. The 12.21 amount of reserved revenue available under this subdivision may 12.22 only be spent for program costs associated with the 12.23 state-approved public alternative program. 12.24 (iii) General education revenue for a pupil in an approved 12.25 alternative program that has an independent study component must 12.26 be paid for each hour of teacher contact time and each hour of 12.27 independent study time completed toward a credit or graduation 12.28 standards necessary for graduation. Average daily membership 12.29 for a pupil shall equal the number of hours of teacher contact 12.30 time and independent study time divided by 1,020. 12.31 (iv) For an alternative program having an independent study 12.32 component, the commissioner shall require a description of the 12.33 courses in the program, the kinds of independent study involved, 12.34 the expected learning outcomes of the courses, and the means of 12.35 measuring student performance against the expected outcomes. 12.36 Sec. 14. Minnesota Statutes 1996, section 124.195, 13.1 subdivision 2, is amended to read: 13.2 Subd. 2. [DEFINITIONS.] (a) The term "other district 13.3 receipts" means payments by county treasurers pursuant to 13.4 section 276.10, apportionments from the school endowment fund 13.5 pursuant to section 124.09, apportionments by the county auditor 13.6 pursuant to section 124.10, subdivision 2, and payments to 13.7 school districts by the commissioner of revenue pursuant to 13.8 chapter 298. 13.9 (b) The term "cumulative amount guaranteed" means the sum 13.10 of the following: 13.11 (1) one-third of the final adjustment payment according to 13.12 subdivision 6; plus 13.13 (2) the product of 13.14 (i) the cumulative disbursement percentage shown in 13.15 subdivision 3; times 13.16 (ii) the sum of 13.178590 percent of the estimated aid and credit entitlements 13.18 paid according to subdivision 10; plus 13.19 100 percent of the entitlements paid according to 13.20 subdivisions 8 and 9; plus 13.21 the other district receipts; plus 13.22 the final adjustment payment according to subdivision 6. 13.23 (c) The term "payment date" means the date on which state 13.24 payments to school districts are made by the electronic funds 13.25 transfer method. If a payment date falls on a Saturday, a 13.26 Sunday, or a weekday which is a legal holiday, the payment shall 13.27 be made on the immediately following business day. The 13.28 commissioner of children, families, and learning may make 13.29 payments on dates other than those listed in subdivision 3, but 13.30 only for portions of payments from any preceding payment dates 13.31 which could not be processed by the electronic funds transfer 13.32 method due to documented extenuating circumstances. 13.33 Sec. 15. Minnesota Statutes 1996, section 124.195, 13.34 subdivision 7, is amended to read: 13.35 Subd. 7. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 13.36 fiscal year state general fund payments for a district 14.1 nonoperating fund shall be made at8590 percent of the 14.2 estimated entitlement during the fiscal year of the entitlement,14.3unless a higher rate has been established according to section14.4121.904, subdivision 4d. This amount shall be paid in 12 equal 14.5 monthly installments. The amount of the actual entitlement, 14.6 after adjustment for actual data, minus the payments made during 14.7 the fiscal year of the entitlement shall be paid prior to 14.8 October 31 of the following school year. The commissioner may 14.9 make advance payments of homestead and agricultural credit aid 14.10 for a district's debt service fund earlier than would occur 14.11 under the preceding schedule if the district submits evidence 14.12 showing a serious cash flow problem in the fund. The 14.13 commissioner may make earlier payments during the year and, if 14.14 necessary, increase the percent of the entitlement paid to 14.15 reduce the cash flow problem. 14.16 Sec. 16. Minnesota Statutes 1996, section 124.195, 14.17 subdivision 10, is amended to read: 14.18 Subd. 10. [AID PAYMENT PERCENTAGE.] Except as provided in 14.19 subdivisions 8, 9, and 11, each fiscal year, all education aids 14.20 and credits in this chapter and chapters 121, 123, 124A, 124B, 14.21 125, 126, 134, and section 273.1392, shall be paid at 90 percent 14.22for districts operating a program under section 121.585 for14.23grades 1 to 12 for all students in the district and 85 percent14.24for other districtsof the estimated entitlement during the 14.25 fiscal year of the entitlement, unless a higher rate has been14.26established according to section 121.904, subdivision 4d.14.27Districts operating a program under section 121.585 for grades 114.28to 12 for all students in the district shall receive 85 percent14.29of the estimated entitlement plus an additional amount of14.30general education aid equal to five percent of the estimated14.31entitlement. For all districts,. The final adjustment payment, 14.32 according to subdivision 6, shall be the amount of the actual 14.33 entitlement, after adjustment for actual data, minus the 14.34 payments made during the fiscal year of the entitlement. 14.35 Sec. 17. Minnesota Statutes 1996, section 124.195, 14.36 subdivision 11, is amended to read: 15.1 Subd. 11. [NONPUBLIC AIDS.] The state shall pay aid 15.2 according to sections 123.931 to 123.947 for pupils attending 15.3 nonpublic schools as follows: 15.4 (1) an advance payment by November 30 equal to8590 15.5 percent of the estimated entitlement for the current fiscal 15.6 year; and 15.7 (2) a final payment by October 31 of the following fiscal 15.8 year, adjusted for actual data. 15.9 If a payment advance to meet cash flow needs is requested 15.10 by a district and approved by the commissioner, the state shall 15.11 paybasicnonpublic pupil transportation aid according to 15.12 section 124.225attributable to pupils attending nonpublic15.13schoolsby October 31. 15.14 Sec. 18. Minnesota Statutes 1996, section 124.225, 15.15 subdivision 1, is amended to read: 15.16 Subdivision 1. [DEFINITIONS.] For purposes of this 15.17 section, the terms defined in this subdivision have the meanings 15.18 given to them. 15.19 (a) "FTE" means a full-time equivalent pupil whose 15.20 transportation is authorized for aidpurposes by section 124.22315.21 or levy. 15.22 (b)"Authorized cost for regular transportation"Actual 15.23 expenditure in the regular and excess transportation categories" 15.24 means the sum of: 15.25(1)all expenditures for transportation in the regular 15.26 category, as defined in paragraph (c), clause (1),for which aid15.27is authorized in section 124.223and the excess category, as 15.28 defined in paragraph (c), clause (3), plus 15.29(2) an amount equal to one year's depreciation on the15.30district's school bus fleet and mobile units computed on a15.31straight line basis at the rate of 15 percent per year for15.32districts operating a program under section 121.585 for grades 115.33to 12 for all students in the district and 12-1/2 percent per15.34year for other districts of the cost of the fleet, plus15.35(3) an amount equal to one year's depreciation on district15.36school buses reconditioned by the department of corrections16.1computed on a straight line basis at the rate of 33-1/3 percent16.2per year of the cost to the district of the reconditioning, plus16.3(4) an amount equal to one year's depreciation on the16.4district's type three school buses, as defined in section16.5169.01, subdivision 6, clause (5), which must be used a majority16.6of the time for the purposes in sections 124.223 and 124.226,16.7subdivisions 5, 8, and 9, and were purchased after July 1, 1982,16.8for authorized transportation of pupils, computed on a straight16.9line basis at the rate of 20 percent per year of the cost of the16.10type three school busesan amount equal to 15 percent per year 16.11 of the original cost of each school bus or mobile unit owned by 16.12 the district and used a majority of the time for pupil 16.13 transportation purposes until the school bus or mobile unit is 16.14 eight years old. 16.15 (c) "Transportation category" means a category of 16.16 transportation service provided to pupils as follows: 16.17 (1) Regular transportation istransportation services16.18provided during the regular school year under section 124.223,16.19subdivisions 1 and 2, excluding the following transportation16.20services provided under section 124.223, subdivision 1:16.21transportation between schools; transportation to and from16.22service-learning programs; noon transportation to and from16.23school for kindergarten pupils attending half-day sessions;16.24transportation of pupils to and from schools located outside16.25their normal attendance areas under the provisions of a plan for16.26desegregation mandated by the state board of education or under16.27court order; and transportation of elementary pupils to and from16.28school within a mobility zone.: 16.29 (i) transportation to and from school during the regular 16.30 school year for resident elementary pupils residing one mile or 16.31 more from the public or nonpublic school they attend, and 16.32 resident secondary pupils residing two miles or more from the 16.33 public or nonpublic school they attend, excluding desegregation 16.34 transportation and noon kindergarten transportation; but with 16.35 respect to transportation of pupils to and from nonpublic 16.36 schools, only to the extent permitted by sections 123.76 to 17.1 123.79; 17.2 (ii) transportation of resident pupils to and from language 17.3 immersion programs; 17.4 (iii) transportation of a pupil who is a custodial parent 17.5 and that pupil's child between the pupil's home and the child 17.6 care provider and between the provider and the school, if the 17.7 home and provider are within the attendance area of the school; 17.8 and 17.9 (iv) transportation to and from or board and lodging in 17.10 another district, of resident pupils of a district without a 17.11 secondary school. 17.12 For the purposes of this paragraph, a district may 17.13 designate a licensed day care facility, respite care facility, 17.14 the residence of a relative, or the residence of a person chosen 17.15 by the pupil's parent or guardian as the home of a pupil for 17.16 part or all of the day, if requested by the pupil's parent or 17.17 guardian, and if that facility or residence is within the 17.18 attendance area of the school the pupil attends. 17.19 (2) Nonregular transportation is: 17.20 (i) transportationservices provided under section 124.223,17.21subdivision 1, that are excluded from the regular17.22categorybetween schools a resident pupil attends for 17.23 instructional classes or to and from a service learning program 17.24 under section 124.223, subdivision 1, paragraph (a); 17.25 (ii) transportation of an elementary pupil within a 17.26 mobility zone under section 124.223, subdivision 1, paragraphs 17.27 (c), (d), and (e); and 17.28 (iii) transportation services provided under section 17.29 124.223, subdivisions 3,4, 5,6,7,8, 9, and 10 excluding 17.30 transportation services for pupils with disabilities. 17.31 (3) Excess transportation is transportation to and from 17.32 school during the regular school year for secondary pupils 17.33 residing at least one mile but less than two miles from the 17.34 publicschool they could attendorfrom thenonpublic school 17.35actually attendedthey attend, and transportation to and from 17.36 school for pupils residing less than one mile from school who 18.1 are transported because of extraordinary traffic, drug, or crime 18.2 hazards. 18.3 (4) Desegregation transportation is transportation within 18.4 and outside of the district during the regular school year of 18.5 pupils to and from schools located outside their normal 18.6 attendance areas under a plan for desegregation mandated by the 18.7 state board or under court order. 18.8 (5)Handicapped transportation is transportation provided18.9under section 124.223, subdivision 4, for pupils with a18.10disability between home or a respite care facility and school or18.11other buildings where special instruction required by sections18.12120.17 and 120.1701 is provided"Transportation services for 18.13 pupils with disabilities" is: 18.14 (i) transportation of pupils with disabilities who cannot 18.15 be transported on a regular school bus between home or a respite 18.16 care facility and school; 18.17 (ii) necessary transportation of pupils with disabilities 18.18 from home or from school to other buildings, including centers 18.19 such as developmental achievement centers, hospitals, and 18.20 treatment centers where special instruction or services required 18.21 by sections 120.17 and 120.1701 are provided, within or outside 18.22 the district where services are provided; 18.23 (iii) necessary transportation for resident pupils with 18.24 disabilities required by sections 120.17, subdivision 4a, and 18.25 120.1701; 18.26 (iv) board and lodging for pupils with disabilities in a 18.27 district maintaining special classes; 18.28 (v) transportation from one educational facility to another 18.29 within the district for resident pupils enrolled on a 18.30 shared-time basis in educational programs, and necessary 18.31 transportation required by sections 120.17, subdivision 9, and 18.32 120.1701, for resident pupils with disabilities who are provided 18.33 special instruction and services on a shared-time basis; 18.34 (vi) transportation for resident pupils with disabilities 18.35 to and from board and lodging facilities when the pupil is 18.36 boarded and lodged for educational purposes; and 19.1 (vii) services described in clauses (i) to (vi), when 19.2 provided for pupils with disabilities in conjunction with a 19.3 summer instructional program that relates to the pupil's 19.4 individual education plan or in conjunction with a learning year 19.5 program established under section 121.585. 19.6 (d) "Mobile unit" means a vehicle or trailer designed to 19.7 provide facilities for educational programs and services, 19.8 including diagnostic testing, guidance and counseling services, 19.9 and health services. A mobile unit located off nonpublic school 19.10 premises is a neutral site as defined in section 123.932, 19.11 subdivision 9. 19.12 (e) "Current year" means the school year for which aid will 19.13 be paid. 19.14 (f) "Base year" means the second school year preceding the 19.15 school year for which aid will be paid. 19.16 (g) "Base cost" means the ratio of: 19.17 (1) the sum of theauthorized costactual expenditures in 19.18 the base year for regular transportation as defined in paragraph 19.19(b)(c) plus the actualcostexpenditures in the base year for 19.20 excess transportation as defined in paragraph (c); 19.21 (2) to the sum of the number of weighted FTE's in the 19.22 regular and excess categories in the base year. 19.23 (h) "Pupil weighting factor" for the excess transportation 19.24 category for a school district means the lesser of one, or the 19.25 result of the following computation: 19.26 (1) Divide the square mile area of the school district by 19.27 the number of FTE's in the regular and excess categories in the 19.28 base year. 19.29 (2) Raise the result in clause (1) to the one-fifth power. 19.30 (3) Divide four-tenths by the result in clause (2). 19.31 The pupil weighting factor for the regular transportation 19.32 category is one. 19.33 (i) "Weighted FTE's" means the number of FTE's in each 19.34 transportation category multiplied by the pupil weighting factor 19.35 for that category. 19.36 (j) "Sparsity index" for a school district means the 20.1 greater of .005 or the ratio of the square mile area of the 20.2 school district to the sum of the number of weighted FTE's by 20.3 the district in the regular and excess categories in the base 20.4 year. 20.5 (k) "Density index" for a school district means the greater 20.6 of one or the result obtained by subtracting the product of the 20.7 district's sparsity index times 20 from two. 20.8 (l)"Contract transportation index" for a school district20.9means the greater of one or the result of the following20.10computation:20.11(1) Multiply the district's sparsity index by 20.20.12(2) Select the lesser of one or the result in clause (1).20.13(3) Multiply the district's percentage of regular FTE's in20.14the current year using vehicles that are not owned by the school20.15district by the result in clause (2).20.16(m)"Adjusted predicted base cost" means the predicted base 20.17 cost as computed in subdivision 3a as adjusted under subdivision 20.18 7a. 20.19(n)(m) "Regular transportation allowance" means the 20.20 adjusted predicted base cost, inflated and adjusted under 20.21 subdivision 7b. 20.22 Sec. 19. Minnesota Statutes 1996, section 124.225, 20.23 subdivision 3a, is amended to read: 20.24 Subd. 3a. [PREDICTED BASE COST.] A district's predicted 20.25 base cost equals the result of the following computation: 20.26 (a) Multiply the transportation formula allowance by the 20.27 district's sparsity index raised to theone-fourth.22 power. 20.28 The transportation formula allowance is$477$530 for the 20.291993-19941996-1997 base year. 20.30 (b) Multiply the result in paragraph (a) by the district's 20.31 density index raised to the1/2one-fourth power. 20.32(c) Multiply the result in paragraph (b) by the district's20.33contract transportation index raised to the 1/20 power.20.34 Sec. 20. Minnesota Statutes 1996, section 124.225, 20.35 subdivision 7b, is amended to read: 20.36 Subd. 7b. [INFLATION FACTORS.] (a) The adjusted predicted 21.1 base cost determined for a district under subdivision 7a for the 21.2 base year must be increased by zero percent to determine the 21.3 district's regular transportation allowance for the1995-199621.4 current school year. 21.5 (b) Notwithstanding paragraph (a), the regular 21.6 transportation allowance for a district for the1995-199621.7 current school year cannot be less than the district's minimum 21.8 regular transportation allowance according to Minnesota Statutes 21.9 1990, section 124.225, subdivision 1, paragraph (t). 21.10 Sec. 21. Minnesota Statutes 1996, section 124.225, 21.11 subdivision 7d, is amended to read: 21.12 Subd. 7d. [TRANSPORTATION REVENUE.] Transportation revenue 21.13 for each district equals the sum of the district's regular 21.14 transportation revenue and the district's nonregular 21.15 transportation revenue. 21.16 (a) The regular transportation revenue for each district 21.17 equals the district's regular transportation allowance according 21.18 to subdivision 7b times the sum of the number of FTE'sby the21.19districtin the regular,and desegregation, and handicapped21.20 categories in the current school year. 21.21 (b)For the 1995-1996 school year,The nonregular 21.22 transportation revenue for each district equals the lesser of 21.23 the district's actual cost in the current school year for 21.24 nonregular transportation services or the product of the 21.25 district's actual cost in the base year for nonregular 21.26 transportation services as defined for the current year in 21.27 subdivision 1, paragraph (c), times the ratio of the district's 21.28 average daily membership for the current year to the district's 21.29 average daily membership for the base year according to section 21.30 124.17, subdivision 2, times the nonregular transportation 21.31 inflation factor for the current year,minus the amount of21.32regular transportation revenue attributable to FTE's in the21.33desegregation and handicapped categories in the current school21.34year,plus the excess nonregular transportation revenue for the 21.35 current year according to subdivision 7e. The nonregular 21.36 transportation inflation factor is 1.0 forthe 1995-199622.1 1998-1999 and later schoolyearyears. 22.2 Sec. 22. Minnesota Statutes 1996, section 124.225, 22.3 subdivision 7f, is amended to read: 22.4 Subd. 7f. [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 22.5 district shall reserve an amount equal to the greater of $500 22.6 or$1.50$3.50 times the number of fund balance pupil units, for 22.7 that school year to provide student transportation safety 22.8 programs under section 123.799. This revenue may only be used 22.9 if the district complies with the reporting requirements of 22.10 section 123.7991, 123.805, 169.452, 169.4582, or 171.321, 22.11 subdivision 5. 22.12 Sec. 23. Minnesota Statutes 1996, section 124.225, 22.13 subdivision 8a, is amended to read: 22.14 Subd. 8a. [TRANSPORTATION AID.] (a) A district's 22.15 transportation aid equals the product of: 22.16 (1) the difference between the transportation revenue and 22.17the sum of:22.18(i) the maximum basic transportation levy for that school22.19year under section 124.226, subdivision 1, plus22.20(ii)the maximum nonregular transportation levy for that 22.21 school year under section 124.226, subdivision 4, plus22.22(iii) the contracted services aid reduction under22.23subdivision 8k,22.24(2) times the ratio of the sum of the actual amounts levied22.25under section 124.226, subdivisions 1 and 4, to the sum of the22.26permitted maximum levies under section 124.226, subdivisions 122.27and 4. 22.28 (b) If the total appropriation for transportation aid for 22.29 any fiscal year is insufficient to pay all districts the full 22.30 amount of aid earned, the department of children, families, and 22.31 learning shall reduce each district's aid in proportion to the 22.32 number of resident pupils in average daily membership in the 22.33 district to the state total average daily membership, and shall22.34reduce the transportation levy of off-formula districts in the22.35same proportion. 22.36 Sec. 24. Minnesota Statutes 1996, section 124.225, 23.1 subdivision 10, is amended to read: 23.2 Subd. 10. [DEPRECIATION.] (a) Any school district that 23.3 owns school buses or mobile unitsshallmay transfer annually 23.4 from the undesignated fund balance account in itstransportation23.5 general fund to the reserved fund balance account for bus 23.6 purchases in itstransportationgeneral fundat leastan amount 23.7equal tonot to exceed 15 percent per yearfor districts23.8operating a program under section 121.585 for grades 1 to 12 for23.9all students in the district and 12-1/2 percent per year for23.10other districtsof the original cost of eachtype one or type23.11twoschool bus or mobile unit until theoriginal cost of each23.12type one or type twoschool bus or mobile unit isfully23.13amortized, plus 20 percent of the original cost of each type23.14three bus included in the district's authorized cost under the23.15provisions of subdivision 1, paragraph (b), clause (4), until23.16the original cost of each type three bus is fully amortized,23.17plus 33-1/3 percent of the cost to the district as of July 1 of23.18each year for school bus reconditioning done by the department23.19of corrections until the cost of the reconditioning is fully23.20amortized; provided, if the district's transportation aid or23.21levy is reduced pursuant to subdivision 8a because the23.22appropriation for that year is insufficient, this amount shall23.23be reduced in proportion to the reduction pursuant to23.24subdivision 8a as a percentage of the district's transportation23.25revenue under subdivision 7deight years old. 23.26 (b) When a district finds that the transfers authorized 23.27 under paragraph (a) are insufficient to eliminate a projected 23.28 deficit in the reserved fund balance account for bus purchases, 23.29 it may apply to the commissioner for permission to make an 23.30 additional transfer. The commissioner must approve, modify, or 23.31 deny the request within 60 days. The commissioner must not 23.32 authorize a transfer under this paragraph in an amount greater 23.33 than the amount of the projected deficit in the reserved fund 23.34 balance account for bus purchases. 23.35 Sec. 25. Minnesota Statutes 1996, section 124.225, 23.36 subdivision 13, is amended to read: 24.1 Subd. 13. [TARGETED NEEDS TRANSPORTATION REVENUE.] A 24.2 district's targeted needs transportation revenue for the 24.3 1996-1997 andlater1997-1998 school years equals the sum of the 24.4 special programs transportation revenue according to subdivision 24.5 14, the integration transportation revenue according to 24.6 subdivision 15, and the nonpublic pupil transportationrevenue24.7 aid according to subdivision 16. 24.8 Sec. 26. Minnesota Statutes 1996, section 124.225, 24.9 subdivision 14, is amended to read: 24.10 Subd. 14. [SPECIAL PROGRAMS TRANSPORTATION REVENUE.] A 24.11 district's special programs transportation revenue for the 24.12 1996-1997 andlater1997-1998 school years equals the sum of: 24.13 (a) the district's actual cost in the base year for 24.14 transportation services for children with disabilities under 24.15section 124.223, subdivisions 4, 5, 7, and 8subdivision 1, 24.16 paragraph (c), clause (5), times the ratio of the district's 24.17 average daily membership for the current school year to the 24.18 district's average daily membership for the base year; plus 24.19 (b) the greater of zero or 80 percent of the difference 24.20 between: 24.21 (1) the district's actual cost in the current year for 24.22 transportation services for children with disabilities under 24.23section 124.223, subdivisions 4, 5, 7, and 8subdivision 1, 24.24 paragraph (c), clause (5); and 24.25 (2) the amount computed in paragraph (a). 24.26 Sec. 27. Minnesota Statutes 1996, section 124.225, 24.27 subdivision 15, is amended to read: 24.28 Subd. 15. [INTEGRATION TRANSPORTATION REVENUE.] A 24.29 district's integration transportation revenue for the 1996-1997 24.30 andlater1997-1998 school years equals the following amounts: 24.31 (a) for independent school district No. 709, Duluth, $4 24.32 times the actual pupil units for the school year; 24.33 (b) for independent school district No. 625, St. Paul, $73 24.34 times the actual pupil units for the school year; and 24.35 (c) for special school district No. 1, Minneapolis, $158 24.36 times the actual pupil units for the school year. 25.1 Sec. 28. Minnesota Statutes 1996, section 124.225, 25.2 subdivision 17, is amended to read: 25.3 Subd. 17. [TARGETED NEEDS TRANSPORTATION AID.] (a) For 25.4 fiscal years 1997 and 1998, a district's targeted needs 25.5 transportation aid is the difference between its targeted needs 25.6 transportation revenue under subdivision 13 and its targeted 25.7 needs transportation levy under section 124.226, subdivision 10. 25.8 (b) If a district does not levy the entire amount 25.9 permitted, aid must be reduced in proportion to the actual 25.10 amount levied. 25.11 Sec. 29. Minnesota Statutes 1996, section 124.226, 25.12 subdivision 4, is amended to read: 25.13 Subd. 4. [NONREGULAR TRANSPORTATION.] A school district 25.14 may also make a levy for unreimbursed nonregular transportation 25.15 costs pursuant to this subdivision. 25.16For the 1995-1996 school year,The amount of the levy shall 25.17 be the result of the following computation: 25.18 (1) multiply 25.19 (i) the amount of the district's nonregular transportation 25.20 revenue under section 124.225, subdivision 7d, that is more than 25.21 the product of $65 times the district's average daily 25.22 membership, by 25.23 (ii) 50 percent; 25.24 (2) subtract the result in clause (1) from the district's 25.25 total nonregular transportation revenue; 25.26 (3) multiply the result in clause (2) by the lesser of one 25.27 or the ratio of 25.28 (i) the quotient derived by dividing the adjusted net tax 25.29 capacity of the district for the year before the year the levy 25.30 is certified by the average daily membership in the district for 25.31 the school year to which the levy is attributable, to 25.32 (ii) $8,000. 25.33 Sec. 30. Minnesota Statutes 1996, section 124.226, 25.34 subdivision 9, is amended to read: 25.35 Subd. 9. [LATE ACTIVITY BUSES.] (a)For taxes payable in25.361996,A school district may levy an amount equal to the lesser 26.1 of: 26.2 (1) the actual cost of late transportation home from 26.3 school, between schools within a district, or between schools in 26.4 one or more districts that have an agreement under sections 26.5 122.241 to 122.248, 122.535, 122.541, or 124.494, for pupils 26.6 involved in after school activities forthethat school year 26.7beginning in the year the levy is certified; or 26.8 (2) two percent of the sum of the district's regular 26.9 transportation revenue and the district's nonregular 26.10 transportation revenue for that school year according to section 26.11 124.225, subdivision 7d. 26.12 (b) A district that levies under this section must provide 26.13 late transportation from school for students participating in 26.14 any academic-related activities provided by the district if 26.15 transportation is provided for students participating in 26.16 athletic activities. 26.17(c) Notwithstanding section 121.904, 50 percent of the levy26.18certified for taxes payable in 1994, and for each year26.19thereafter the entire amount of this levy, shall be recognized26.20as revenue for the fiscal year in which the levy is certified.26.21 Sec. 31. Minnesota Statutes 1996, section 124.226, 26.22 subdivision 10, is amended to read: 26.23 Subd. 10. [TARGETED NEEDS TRANSPORTATION LEVY.] A school 26.24 district may make a levy for targeted needs transportation costs 26.25 according to this subdivision. The amount of the levy shall be 26.26 the result of the following computation: 26.27 (1) For fiscalyearyears 1997 andlater1998, targeted 26.28 needs transportation levy equalization revenue equals 28 percent 26.29 of the sum of the district's special programs transportation 26.30 revenue under section 124.225, subdivision 14, and the 26.31 district's integration transportation revenue under section 26.32 124.225, subdivision 15. 26.33 (2) The targeted needs transportation levy equals the 26.34 result in clause (1) times the lesser of one or the ratio of (i) 26.35 the quotient derived by dividing the adjusted net tax capacity 26.36 of the district for the year before the year the levy is 27.1 certified by the actual pupil units in the district for the 27.2 school year to which the levy is attributable, to (ii) $3,540. 27.3 Sec. 32. Minnesota Statutes 1996, section 124.912, 27.4 subdivision 1, is amended to read: 27.5 Subdivision 1. [STATUTORY OBLIGATIONS.](a)A school 27.6 district may levy: 27.7 (1) the amount authorized for liabilities of dissolved 27.8 districts pursuant to section 122.45; 27.9 (2) the amounts necessary to pay the district's obligations 27.10 under section 268.06, subdivision 25;and the amounts necessary 27.11 to pay for job placement services offered to employees who may 27.12 become eligible for benefits pursuant to section 268.08 for the 27.13 fiscal year the levy is certified; 27.14 (3) the amounts necessary to pay the district's obligations 27.15 under section 127.05; 27.16 (4) the amounts authorized by section 122.531; 27.17 (5) the amounts necessary to pay the district's obligations 27.18 under section 122.533; and 27.19 (6) for severance pay required by sections 120.08, 27.20 subdivision 3, and 122.535, subdivision 6. 27.21(b) Each year, a member district of an education district27.22that levies under this subdivision must transfer the amount of27.23revenue certified under paragraph (b) to the education district27.24board according to this subdivision. By June 20 and November 3027.25of each year, an amount must be transferred equal to:27.26(1) 50 percent times27.27(2) the amount certified in paragraph (b) minus homestead27.28and agricultural credit aid allocated for that levy according to27.29section 273.1398, subdivision 6.27.30 Sec. 33. Minnesota Statutes 1996, section 124.912, 27.31 subdivision 2, is amended to read: 27.32 Subd. 2. [DESEGREGATION.] Each year, special school 27.33 district No. 1, Minneapolis, may levy an amount not to exceed 27.34 $197 times its actual pupil units for that fiscal year; 27.35 independent school district No. 625, St. Paul, may levy an 27.36 amount not to exceed $197 times its actual pupil units for that 28.1 fiscal year; and independent school district No. 709, Duluth, 28.2 may levy an amount not to exceed the sum of $660,000 and the 28.3 amount raised by a tax rate of 2.0 percent times the adjusted 28.4 net tax capacity of the district.Notwithstanding section28.5121.904, the entire amount of this levy shall be recognized as28.6revenue for the fiscal year in which the levy is certified.28.7This levy shall not be considered in computing the aid reduction28.8under section 124.155.28.9 Sec. 34. Minnesota Statutes 1996, section 124.912, 28.10 subdivision 3, is amended to read: 28.11 Subd. 3. [RULE COMPLIANCE.] Each year a district that is 28.12 required to implement a plan according to the requirements of 28.13 Minnesota Rules, parts 3535.0200 to 3535.2200, may levy an 28.14 amount not to exceed a net tax rate of 2.0 percent times the 28.15 adjusted net tax capacity of the district for taxes payable in 28.16 1991 and thereafter. A district that levies according to 28.17 subdivision 2 may not levy according to this subdivision. 28.18Notwithstanding section 121.904, the entire amount of this levy28.19shall be recognized as revenue for the fiscal year in which the28.20levy is certified. This levy shall not be considered in28.21computing the aid reduction under section 124.155.28.22 Sec. 35. Minnesota Statutes 1996, section 124.916, 28.23 subdivision 1, is amended to read: 28.24 Subdivision 1. [HEALTH INSURANCE.] (a) A school district 28.25 may levy the amount necessary to make employer contributions for 28.26 insurance for retired employees under this 28.27 subdivision.Notwithstanding section 121.904, 50 percent of the28.28amount levied shall be recognized as revenue for the fiscal year28.29in which the levy is certified. This levy shall not be28.30considered in computing the aid reduction under section 124.155.28.31 (b) The school board of a joint vocational technical 28.32 district formed under sections 136C.60 to 136C.69 and the school 28.33 board of a school district may provide employer-paid hospital, 28.34 medical, and dental benefits to a person who: 28.35 (1) is eligible for employer-paid insurance under 28.36 collective bargaining agreements or personnel plans in effect on 29.1 June 30, 1992; 29.2 (2) has at least 25 years of service credit in the public 29.3 pension plan of which the person is a member on the day before 29.4 retirement or, in the case of a teacher, has a total of at least 29.5 25 years of service credit in the teachers retirement 29.6 association, a first-class city teacher retirement fund, or any 29.7 combination of these; 29.8 (3) upon retirement is immediately eligible for a 29.9 retirement annuity; 29.10 (4) is at least 55 and not yet 65 years of age; and 29.11 (5) retires on or after May 15, 1992, and before July 21, 29.12 1992. 29.13 A school board paying insurance under this subdivision may 29.14 not exclude any eligible employees. 29.15 (c) An employee who is eligible both for the health 29.16 insurance benefit under this subdivision and for an early 29.17 retirement incentive under a collective bargaining agreement or 29.18 personnel plan established by the employer must select either 29.19 the early retirement incentive provided under the collective 29.20 bargaining agreement personnel plan or the incentive provided 29.21 under this subdivision, but may not receive both. For purposes 29.22 of this subdivision, a person retires when the person terminates 29.23 active employment and applies for retirement benefits. The 29.24 retired employee is eligible for single and dependent coverages 29.25 and employer payments to which the person was entitled 29.26 immediately before retirement, subject to any changes in 29.27 coverage and employer and employee payments through collective 29.28 bargaining or personnel plans, for employees in positions 29.29 equivalent to the position from which the employee retired. The 29.30 retired employee is not eligible for employer-paid life 29.31 insurance. Eligibility ceases when the retired employee attains 29.32 the age of 65, or when the employee chooses not to receive the 29.33 retirement benefits for which the employee has applied, or when 29.34 the employee is eligible for employer-paid health insurance from 29.35 a new employer. Coverages must be coordinated with relevant 29.36 health insurance benefits provided through the federally 30.1 sponsored Medicare program. 30.2 (d) Unilateral implementation of this section by a public 30.3 employer is not an unfair labor practice for purposes of chapter 30.4 179A. The authority provided in this subdivision for an 30.5 employer to pay health insurance costs for certain retired 30.6 employees is not subject to the limits in section 179A.20, 30.7 subdivision 2a. 30.8 (e) If a school district levies according to this 30.9 subdivision, it may not also levy according to section 122.531, 30.10 subdivision 9, for eligible employees. 30.11 Sec. 36. Minnesota Statutes 1996, section 124.916, 30.12 subdivision 2, is amended to read: 30.13 Subd. 2. [RETIRED EMPLOYEE HEALTH BENEFITS.] For taxes 30.14 payable in 1996, 1997, 1998, and 1999 only, a school district 30.15 may levy an amount up to the amount the district is required by 30.16 the collective bargaining agreement in effect on March 30, 1992, 30.17 to pay for health insurance or unreimbursed medical expenses for 30.18 licensed and nonlicensed employees who have terminated services 30.19 in the employing district and withdrawn from active teaching 30.20 service or other active service, as applicable, before July 1, 30.21 1992. The total amount of the levy each year may not exceed 30.22 $300,000. 30.23Notwithstanding section 121.904, 50 percent of the proceeds30.24of this levy shall be recognized in the fiscal year in which it30.25is certified.30.26 Sec. 37. Minnesota Statutes 1996, section 124.916, 30.27 subdivision 3, is amended to read: 30.28 Subd. 3. [RETIREMENT LEVIES.] (1) In addition to the 30.29 excess levy authorized in 1976 any district within a city of the 30.30 first class which was authorized in 1975 to make a retirement 30.31 levy under Minnesota Statutes 1974, section 275.127 and chapter 30.32 422A may levy an amount per pupil unit which is equal to the 30.33 amount levied in 1975 payable 1976, under Minnesota Statutes 30.34 1974, section 275.127 and chapter 422A, divided by the number of 30.35 pupil units in the district in 1976-1977. 30.36 (2) In 1979 and each year thereafter, any district which 31.1 qualified in 1976 for an extra levy under paragraph (1) shall be 31.2 allowed to levy the same amount as levied for retirement in 1978 31.3 under this clause reduced each year by ten percent of the 31.4 difference between the amount levied for retirement in 1971 31.5 under Minnesota Statutes 1971, sections 275.127 and 422.01 to 31.6 422.54 and the amount levied for retirement in 1975 under 31.7 Minnesota Statutes 1974, section 275.127 and chapter 422A. 31.8 (3) In 1991 and each year thereafter, a district to which 31.9 this subdivision applies may levy an additional amount required 31.10 for contributions to the Minneapolis employees retirement fund 31.11 as a result of the maximum dollar amount limitation on state 31.12 contributions to the fund imposed under section 422A.101, 31.13 subdivision 3. The additional levy shall not exceed the most 31.14 recent amount certified by the board of the Minneapolis 31.15 employees retirement fund as the district's share of the 31.16 contribution requirement in excess of the maximum state 31.17 contribution under section 422A.101, subdivision 3. 31.18 (4) For taxes payable in 1994 and thereafter, special 31.19 school district No. 1, Minneapolis, and independent school 31.20 district No. 625, St. Paul, may levy for the increase in the 31.21 employer retirement fund contributions, under Laws 1992, chapter 31.22 598, article 5, section 1.Notwithstanding section 121.904, the31.23entire amount of this levy may be recognized as revenue for the31.24fiscal year in which the levy is certified. This levy shall not31.25be considered in computing the aid reduction under section31.26124.155.31.27 (5) If the employer retirement fund contributions under 31.28 section 354A.12, subdivision 2a, are increased for fiscal year 31.29 1994 or later fiscal years, special school district No. 1, 31.30 Minneapolis, and independent school district No. 625, St. Paul, 31.31 may levy in payable 1994 or later an amount equal to the amount 31.32 derived by applying the net increase in the employer retirement 31.33 fund contribution rate of the respective teacher retirement fund 31.34 association between fiscal year 1993 and the fiscal year 31.35 beginning in the year after the levy is certified to the total 31.36 covered payroll of the applicable teacher retirement fund 32.1 association.Notwithstanding section 121.904, the entire amount32.2of this levy may be recognized as revenue for the fiscal year in32.3which the levy is certified. This levy shall not be considered32.4in computing the aid reduction under section 124.155.If an 32.5 applicable school district levies under this paragraph, they may 32.6 not levy under paragraph (4). 32.7 (6) In addition to the levy authorized under paragraph (5), 32.8 special school district No. 1, Minneapolis, may also levy 32.9 payable in 1997 or later an amount equal to the contributions 32.10 under section 423A.02, subdivision 3, and may also levy in 32.11 payable 1994 or later an amount equal to the state aid 32.12 contribution under section 354A.12, subdivision 3b. Independent 32.13 school district No. 625, St. Paul, may levy payable in 1997 or 32.14 later an amount equal to the supplemental contributions under 32.15 section 423A.02, subdivision 3.Notwithstanding section32.16121.904, the entire amount of these levies may be recognized as32.17revenue for the fiscal year in which the levy is certified.32.18These levies shall not be considered in computing the aid32.19reduction under section 124.155.32.20 Sec. 38. Minnesota Statutes 1996, section 124.918, 32.21 subdivision 6, is amended to read: 32.22 Subd. 6. [ADJUSTMENTS FOR LAW CHANGES.] Whenever a change 32.23 enacted in law changes the levy authority for a school district 32.24 or an intermediate school district for a fiscal year after the 32.25 levy for that fiscal year has been certified by the district 32.26 under section 275.07, the department of children, families, and 32.27 learning shall adjust the next levy certified by the district by 32.28 the amount of the change in levy authority for that fiscal year 32.29 resulting from the change. Notwithstanding section 121.904, the 32.30 entire amountfor fiscal year 1992 and 50 percent for fiscal32.31years thereafterof the levy adjustment must be recognized as 32.32 revenue in the fiscal year the levy is certified, if sufficient 32.33 levy resources are available under generally accepted accounting 32.34 principles in the district fund where the adjustment is to 32.35 occur. School districts that do not have sufficient levy 32.36 resources available in the fund where the adjustment is to occur 33.1 shall recognize in the fiscal year the levy is certified an 33.2 amount equal to the levy resources available. The remaining 33.3 adjustment amount shall be recognized as revenue in the fiscal 33.4 year after the levy is certified. 33.5 Sec. 39. Minnesota Statutes 1996, section 124A.03, 33.6 subdivision 1c, is amended to read: 33.7 Subd. 1c. [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 33.8 subdivision 1b, a district's referendum allowance must not 33.9 exceed the greater of: 33.10 (1) the district's referendum allowance for fiscal year 33.11 1994;or33.12 (2) 25 percent of the formula allowance minus $300 for 33.13 fiscal year 1997 and later; or 33.14 (3) for a newly reorganized district created after July 1, 33.15 1994, the sum of the referendum revenue authority for the 33.16 reorganizing districts for the fiscal year preceding the 33.17 reorganization, divided by the sum of the actual pupil units of 33.18 the reorganizing districts for the fiscal year preceding the 33.19 reorganization. 33.20 Sec. 40. Minnesota Statutes 1996, section 124A.036, 33.21 subdivision 5, is amended to read: 33.22 Subd. 5. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 33.23 education aid for districts must be adjusted for each pupil 33.24 attending a nonresident district under sections 120.062, 33.25 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22. 33.26 The adjustments must be made according to this subdivision. 33.27 (a) General education aid paid to a resident district must 33.28 be reduced by an amount equal to the sum of: 33.29 (1) the general education revenue exclusive ofcompensatory33.30 basic skills revenue; and 33.31 (2) the referendum equalization revenue approved or renewed 33.32 after July 1, 1997, attributable to the pupil in the resident 33.33 district. 33.34 (b) General education aid paid to a district serving a 33.35 pupil in programs listed in this subdivision shall be increased 33.36 by an amount equal to the sum of: 34.1 (1) the general education revenue exclusive ofcompensatory34.2 basic skills revenue; and 34.3 (2) the referendum equalization revenue approved or renewed 34.4 after July 1, 1997, attributable to the pupil in the nonresident 34.5 district. 34.6 (c) If the amount of the reduction to be made from the 34.7 general education aid of the resident district is greater than 34.8 the amount of general education aid otherwise due the district, 34.9 the excess reduction must be made from other state aids due the 34.10 district. 34.11 (d) The district of residence shall pay tuition to a 34.12 district or an area learning center, operated according to 34.13 paragraph (e), providing special instruction and services to a 34.14 pupil with a disability, as defined in section 120.03, or a 34.15 pupil, as defined in section 120.181, who is enrolled in a 34.16 program listed in this subdivision. The tuition shall be equal 34.17 to (1) the actual cost of providing special instruction and 34.18 services to the pupil, including a proportionate amount for debt 34.19 service and for capital expenditure facilities and equipment, 34.20 and debt service but not including any amount for 34.21 transportation, minus (2) the amount of general education aid, 34.22the amount of capital expenditure facilities aid and capital34.23expenditure equipment aid received under section 124.245,34.24subdivision 6,and special education aid, attributable to that 34.25 pupil, that is received by the district providing special 34.26 instruction and services. 34.27 (e) An area learning center operated by a service 34.28 cooperative, intermediate district, education district, or a 34.29 joint powers cooperative may elect through the action of the 34.30 constituent boards to charge tuition for pupils rather than to 34.31 calculate general education aid adjustments under paragraph (a), 34.32 (b), or (c). The tuition must be equal to the greater of the 34.33 average general education revenue per pupil unit attributable to 34.34 the pupil, or the actual cost of providing the instruction, 34.35 excluding transportation costs, if the pupil meets the 34.36 requirements of section 120.03 or 120.181. 35.1 Sec. 41. Minnesota Statutes 1996, section 124A.036, 35.2 subdivision 6, is amended to read: 35.3 Subd. 6. [CHARTER SCHOOLS.] (a) The general education aid 35.4 for districts must be adjusted for each pupil attending a 35.5 charter school under section 120.064. The adjustments must be 35.6 made according to this subdivision. 35.7 (b) General education aid paid to a resident district must 35.8 be reduced by an amount equal to the sum of: 35.9 (1) the general education revenue exclusive ofcompensatory35.10 basic skills revenue; and 35.11 (2) the referendum equalization revenue approved or renewed 35.12 after July 1, 1997. 35.13 (c)General education aid paid to a district in which a35.14charter school not providing transportation according to section35.15120.064, subdivision 15, is located shall be increased by an35.16amount equal to the product of: (1) the sum of $170, plus the35.17transportation sparsity allowance for the district, plus the35.18transportation transition allowance for the district; times (2)35.19the pupil units attributable to the pupil.35.20(d)If the amount of the reduction to be made from the 35.21 general education aid of the resident district is greater than 35.22 the amount of general education aid otherwise due the district, 35.23 the excess reduction must be made from other state aids due the 35.24 district. 35.25 Sec. 42. Minnesota Statutes 1996, section 124A.04, 35.26 subdivision 2, is amended to read: 35.27 Subd. 2. [19931999 AND LATER.] The training and 35.28 experience index for fiscal year 1999 and later must be 35.29 constructed in the following manner: 35.30 (a) The department shall construct a matrix that classifies 35.31 teachers by the extent of training received in accredited 35.32 institutions of higher education and by the years of experience 35.33 that districts take into account in determining teacher salaries. 35.34 (b) The average salary for each cell of the matrix must be 35.35 computed as follows using data fromthe second year of the35.36previous bienniumfiscal year 1997: 36.1 (1) For each school district, multiply the salary paid to 36.2 full-time equivalent teachers with that combination of training 36.3 and experience according to the district's teacher salary 36.4 schedule by the number of actual pupil units in that district. 36.5 (2) Add the amounts computed in clause (1) for all 36.6 districts in the state and divide the resulting sum by the total 36.7 number of actual pupil units in all districts in the state that 36.8 employ teachers. 36.9 (c) For each cell in the matrix, compute the ratio of the 36.10 average salary in that cell to the average salary for all 36.11 teachers in the state during fiscal year 1997. 36.12 (d) The index for each district that employs teachers 36.13 equals the sum of: (i) for teachers employed in that district 36.14 during fiscal year 1997 and the current fiscal year, the ratios 36.15 for each teacher computed using data for fiscal year 1997; and 36.16 (ii) for teachers employed in that district during the current 36.17 fiscal year but not during fiscal year 1997, the ratio for 36.18 teachers who are in their first year of teaching and who have no 36.19 additional credits or degrees above a bachelor's degree divided 36.20 by the number of teachers in that district. The index for a 36.21 district that employs no teachers is zero. 36.22 Sec. 43. Minnesota Statutes 1996, section 124A.22, 36.23 subdivision 1, is amended to read: 36.24 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a)For fiscal36.25year 1996, the general education revenue for each district36.26equals the sum of the district's basic revenue, compensatory36.27education revenue, training and experience revenue, secondary36.28sparsity revenue, elementary sparsity revenue, and supplemental36.29revenue.36.30(b)For fiscalyearyears 1997 andthereafter1998, the 36.31 general education revenue for each district equals the sum of 36.32 the district's basic revenue, compensatory education revenue, 36.33 secondary sparsity revenue, elementary sparsity revenue, 36.34 transportation sparsity revenue, total operating capital 36.35 revenue, transition revenue, and supplemental revenue. 36.36 (b) For fiscal year 1999 and thereafter, the general 37.1 education revenue for each district equals the sum of the 37.2 district's basic revenue, basic skills revenue, training and 37.3 experience revenue, secondary sparsity revenue, elementary 37.4 sparsity revenue, total operating capital revenue, transition 37.5 revenue, and supplemental revenue. 37.6 Sec. 44. Minnesota Statutes 1996, section 124A.22, 37.7 subdivision 2, as amended by Laws 1997, chapter 1, section 4, is 37.8 amended to read: 37.9 Subd. 2. [BASIC REVENUE.] The basic revenue for each 37.10 district equals the formula allowance times the actual pupil 37.11 units for the school year. The formula allowance for fiscal 37.12 year 1995 is $3,150. The formula allowance for fiscal year 1996 37.13 is $3,205. The formula allowance for fiscal year 1997and37.14subsequent fiscal yearsis $3,505. The formula allowance for 37.15 fiscal year 1998 is $3,580 and the formula allowance for fiscal 37.16 year 1999 and subsequent fiscal years is $3,355. 37.17 Sec. 45. Minnesota Statutes 1996, section 124A.22, 37.18 subdivision 3, is amended to read: 37.19 Subd. 3. [FISCAL YEAR 1998 COMPENSATORY EDUCATION 37.20 REVENUE.] The compensatory education revenue for each 37.21 district for fiscal year 1998 equals the formula allowance less 37.22 $300 times the AFDC pupil units computed according to section 37.23 124.17, subdivision 1d. 37.24 Sec. 46. Minnesota Statutes 1996, section 124A.22, is 37.25 amended by adding a subdivision to read: 37.26 Subd. 3a. [BASIC SKILLS REVENUE.] For fiscal year 1999 and 37.27 thereafter, a school district's basic skills revenue equals the 37.28 sum of: 37.29 (1) the formula allowance times the MFIP-S adjustment 37.30 factor times the AFDC pupil units computed according to section 37.31 124.17, subdivision 1d; plus 37.32 (2) the limited English proficiency revenue according to 37.33 section 124.273, subdivision 1g; plus 37.34 (3) $175 times the limited English proficiency pupil units 37.35 according to section 124.17, subdivision 6; plus 37.36 (4) the lesser of: (i) $22 times the number of fund 38.1 balance pupil units in kindergarten to grade 8; or (ii) the 38.2 amount of district money provided to match basic skills revenue 38.3 for the purposes described in section 124A.28. 38.4 The MFIP-S adjustment factor equals .877 for fiscal year 38.5 2000 and .862 for fiscal year 2001. 38.6 Sec. 47. Minnesota Statutes 1996, section 124A.22, 38.7 subdivision 6, is amended to read: 38.8 Subd. 6. [SECONDARY SPARSITY REVENUE.] (a) A district's 38.9 secondary sparsity revenue for a school year equals the sum of 38.10 the results of the following calculation for each qualifying 38.11 high school in the district: 38.12 (1) the formula allowance for the school yearless $300, 38.13 multiplied by 38.14 (2) the secondary average daily membership of the high 38.15 school, multiplied by 38.16 (3) the quotient obtained by dividing 400 minus the 38.17 secondary average daily membership by 400 plus the secondary 38.18 daily membership, multiplied by 38.19 (4) the lesser of 1.5 or the quotient obtained by dividing 38.20 the isolation index minus 23 by ten. 38.21 (b) A newly formed school district that is the result of 38.22 districts combining under the cooperation and combination 38.23 program or consolidating under section 122.23 shall receive 38.24 secondary sparsity revenue equal to the greater of: (1) the 38.25 amount calculated under paragraph (a) for the combined district; 38.26 or (2) the sum of the amounts of secondary sparsity revenue the 38.27 former school districts had in the year prior to consolidation, 38.28 increased for any subsequent changes in the secondary sparsity 38.29 formula. 38.30 Sec. 48. Minnesota Statutes 1996, section 124A.22, 38.31 subdivision 6a, is amended to read: 38.32 Subd. 6a. [ELEMENTARY SPARSITY REVENUE.] A district's 38.33 elementary sparsity revenue equals the sum of the following 38.34 amounts for each qualifying elementary school in the district: 38.35 (1) the formula allowance for the yearless $300, 38.36 multiplied by 39.1 (2) the elementary average daily membership of the school, 39.2 multiplied by 39.3 (3) the quotient obtained by dividing 140 minus the 39.4 elementary average daily membership by 140 plus the average 39.5 daily membership. 39.6 Sec. 49. Minnesota Statutes 1996, section 124A.22, 39.7 subdivision 13b, is amended to read: 39.8 Subd. 13b. [TRANSITION ALLOWANCE.] (a)A district's39.9transportation transition allowance for fiscal year 1997 equals39.10the result of the following computation:39.11(1) if the result in subdivision 13a, paragraph (a), clause39.12(iii), for fiscal year 1997 is less than the fiscal year 199639.13base allowance, the transportation transition allowance equals39.14the fiscal year 1996 base allowance minus the result in39.15subdivision 13a, paragraph (a), clause (iii).39.16(2) if the result in subdivision 13a, paragraph (b), for39.17fiscal year 1997 is greater than the fiscal year 1996 base39.18allowance and less than 110 percent of the fiscal year 1996 base39.19allowance, the transportation transition allowance equals zero.39.20(3) if the result in subdivision 13a, paragraph (b), for39.21fiscal year 1997 is greater than 110 percent of the fiscal year39.221996 base allowance, the transportation transition allowance39.23equals 110 percent of the fiscal year 1996 base allowance minus39.24the result in subdivision 13a, paragraph (a), clause (iii).39.25(b) A district's transportation transition allowance for39.26fiscal year 1998 equals the result of the following:39.27(1) if the result in subdivision 13a, paragraph (a), clause39.28(iii), for fiscal year 1998 is less than the fiscal year 199639.29base allowance, the transportation transition allowance equals39.30the fiscal year 1996 base allowance minus the result in39.31subdivision 13a, paragraph (a), clause (iii); or39.32(2) if the result in subdivision 13a, paragraph (a), clause39.33(iii), for fiscal year 1998 is greater than or equal to the39.34fiscal year 1996 base allowance, the transportation transition39.35allowance equals zero.39.36(c)For fiscal years 1997 and 1998, a district's training 40.1 and experience transition allowance is equal to the training and 40.2 experience revenue the district would have received under 40.3 Minnesota Statutes 1994, section 124A.22, subdivision 4, divided 40.4 by the actual pupil units for fiscal year 1997 minus $130. For 40.5 fiscal year 1999 and later, a district's training and experience 40.6 transition allowance equals zero. 40.7 If the training and experience transition allowance is less 40.8 than zero, the reduction shall be determined according to the 40.9 following schedule: 40.10(i)(1) for fiscal year 1997, the reduction is equal to .9 40.11 times the amount initially determined; 40.12(ii)(2) for fiscal year 1998, the reduction is equal to 40.13 .75 times the amount initially determined; and 40.14(iii) for fiscal year 1999, the reduction is equal to .5040.15times the amount initially determined;40.16(iv) for fiscal year 2000, the reduction is equal to .2540.17times the amount initially determined; and40.18(v) for fiscal year 2001 and thereafter, the transition40.19allowance shall not be less than zero40.20 (3) a district's transition cooperation allowance equals 40.21 the greater of: (i) zero; or (ii) the difference between 40.22 $25,000 and the product of $67 times the district's actual pupil 40.23 units for the 1997-1998 school year all divided by the 40.24 district's actual pupil units for the 1997-1998 school year. 40.25(d)(b) A district's transition allowance for fiscal year 40.2619971999 and thereafter is equal tothe sum of its40.27transportation transition allowance and its training and40.28experienceits transition cooperation allowance. 40.29 Sec. 50. Minnesota Statutes 1996, section 124A.225, 40.30 subdivision 4, is amended to read: 40.31 Subd. 4. [REVENUE USE.] (a) Revenue must be used according 40.32 to either paragraph (b), (c), or (d). 40.33 (b) Revenue shall be used to reduce and maintain the 40.34 district's instructor to learner ratios in kindergarten through 40.35 grade 6 to a level of 1 to 17 on average. The district must 40.36 prioritize the use of the revenue to attain this level initially 41.1 in kindergarten and grade 1and then through the subsequent41.2grades as revenue is available. Once the ratios in kindergarten 41.3 and grade 1 have been reduced to a level of 1 to 17 on average, 41.4 the district is allowed to use the revenue to reduce 41.5 instructor-learner ratios in other elementary grades if the 41.6 district determines priority must be given to those elementary 41.7 pupils. 41.8 (c) Notwithstanding paragraph (b), for fiscal year 1995, a 41.9 district with exceptional need as defined in subdivision 6, 41.10 paragraph (a), may use the revenue to reduce and maintain the 41.11 district's instructor-to-learner ratios in kindergarten through 41.12 grade 6 to a level that is at least 2.0 less than the district's 41.13 adopted staffing ratio, if the remaining learning and 41.14 development revenue is used to continue or initiate staffing 41.15 patterns that meet the needs of a diverse student population. 41.16 Programs to meet the needs of a diverse student population may 41.17 include programs for at-risk pupils and learning enrichment 41.18 programs. 41.19 (d) For fiscal year 1995 only, in any school building that 41.20 meets the characteristics of exceptional need as defined in 41.21 subdivision 6, paragraph (b), a district may use the revenue to 41.22 employ education assistants or aides supervised by a learner's 41.23 regular instructor to assist learners in those school buildings. 41.24 (e) The revenue may be used to prepare and use an 41.25 individualized learning plan for each learner. A district must 41.26 not increase the district wide instructor-learner ratios in 41.27 other grades as a result of reducing instructor-learner ratios 41.28 in kindergarten through grade 6. Revenue may not be used to 41.29 provide instructor preparation time or to provide the district's 41.30 share of revenue required under section 124.311. A school 41.31 district may use a portion of the revenue reserved under this 41.32 section to employ up to the same number of full-time equivalent 41.33 education assistants or aides as the district employed during 41.34 the 1992-1993 school year under Minnesota Statutes 1992, section 41.35 124.331, subdivision 2. 41.36 Sec. 51. Minnesota Statutes 1996, section 124A.23, 42.1 subdivision 1, is amended to read: 42.2 Subdivision 1. [GENERAL EDUCATION TAX RATE.] The 42.3 commissioner shall establish the general education tax rate by 42.4 July 1 of each year for levies payable in the following year. 42.5 The general education tax capacity rate shall be a rate, rounded 42.6 up to the nearest tenth of a percent, that, when applied to the 42.7 adjusted net tax capacity for all districts, raises the amount 42.8 specified in this subdivision. The general education tax rate 42.9 shall be the rate that raises$1,054,000,000 for fiscal year42.101996 and$1,359,000,000 for fiscal year1997 and1998, 42.11 $1,368,000,000 for fiscal year 1999, and $1,408,000,000 for 42.12 fiscal year 2000, and later fiscal years. The general education 42.13 tax rate may not be changed due to changes or, corrections made 42.14 to a district's adjusted net tax capacity after the tax rate has 42.15 been established. 42.16 Sec. 52. Minnesota Statutes 1996, section 124A.23, 42.17 subdivision 3, is amended to read: 42.18 Subd. 3. [GENERAL EDUCATION LEVY; DISTRICTS OFF THE 42.19 FORMULA.] If the amount of the general education levy for a 42.20 district exceeds the district's general education revenue, 42.21 excludingtraining and experiencetransition revenue and 42.22 supplemental revenue, the amount of the general education levy 42.23 shall be limited to the following: 42.24 (1) the district's general education revenue, excluding 42.25training and experiencetransition revenue and supplemental 42.26 revenue; plus 42.27 (2) the amount of the aid reduction for the same school 42.28 year according to section 124A.24; minus 42.29 (3) payments made for the same school year according to 42.30 section 124A.035, subdivision 4. 42.31 For purposes of statutory cross-reference, a levy made 42.32 according to this subdivision shall be construed to be the levy 42.33 made according to subdivision 2. 42.34 Sec. 53. Minnesota Statutes 1996, section 124A.26, 42.35 subdivision 1, is amended to read: 42.36 Subdivision 1. [REVENUE REDUCTION.] A district's general 43.1 education revenue for a school year shall be reduced if the 43.2 estimated net unappropriated operating fund balance as of June 43.3 30 in the prior school year exceeds 25 percent of the formula 43.4 allowance for the current fiscal year times the fund balance 43.5 pupil units in the prior year. For purposes of this subdivision 43.6and section 124.243, subdivision 2, fund balance pupil units 43.7 means the number of resident pupil units in average daily 43.8 membership, including shared time pupils, according to section 43.9 124A.02, subdivision 20, plus 43.10 (1) pupils attending the district for which general 43.11 education aid adjustments are made according to section 43.12 124A.036, subdivision 5; minus 43.13 (2) the sum of the resident pupils attending other 43.14 districts for which general education aid adjustments are made 43.15 according to section 124A.036, subdivision 5, plus pupils for 43.16 whom payment is made according to section 126.22, subdivision 8, 43.17 or 126.23. The amount of the reduction shall equal the lesser 43.18 of: 43.19 (1) the amount of the excess, or 43.20 (2) $250 times the actual pupil units for the school year. 43.21 The final adjustment payments made under section 124.195, 43.22 subdivision 6, must be adjusted to reflect actual net operating 43.23 fund balances as of June 30 of the prior school year. 43.24 Sec. 54. Minnesota Statutes 1996, section 124A.28, is 43.25 amended to read: 43.26 124A.28 [COMPENSATORY EDUCATIONBASIC SKILLS REVENUE.] 43.27 Subdivision 1. [USE OF THE REVENUE.] Thecompensatory43.28educationbasic skills revenue under section 124A.22, 43.29 subdivision33a, must be used to meet the educational needs of 43.30 pupils whoseeducational achievementprogress toward meeting 43.31 state or local content or performance standards is below the 43.32 level that is appropriate forpupilslearners of their age. 43.33These needs may be met by providing theAny of the following may 43.34 be provided to meet these learners' needs: 43.35 (1) direct instructional services under the assurance of 43.36 mastery program according to section124.311124.3111; 44.1 (2) remedial instruction in reading, language arts,and44.2 mathematics, other content areas, or study skills to improve the 44.3 achievement level of thesepupilslearners; 44.4 (3) additional teachers and teacher aides to provide more 44.5 individualized instruction to thesepupilslearners through 44.6 individual tutoring, lower instructor-to-learner ratios, or team 44.7 teaching; 44.8 (4) summer programs that enable these pupils to improve 44.9 their achievement or that reemphasize material taught during the 44.10 regular school year; 44.11 (5)in-service educationcomprehensive and ongoing staff 44.12 development consistent with district and site plans according to 44.13 section 126.70, for teachers, teacher aides, principals, and 44.14 other personnel to improve their ability torecognizeidentify 44.15 the needs of thesepupilslearners and provide 44.16 appropriateresponses to the pupils' needsremediation, 44.17 intervention, accommodations, or modifications; 44.18 (6)forinstructionalmaterial for these pupils including:44.19textbooks, workbooks, periodicals, pamphlets, photographs,44.20reproductions, filmstrips, prepared slides, prerecorded video44.21programs, sound recordings, desk charts, games, study prints and44.22pictures, desk maps, models, learning kits, blocks and cubes,44.23flashcards, instructional computer software programs, pencils,44.24pens, crayons, notebooks, duplicating fluids, and44.25papersmaterials and technology appropriate for meeting the 44.26 individual needs of these learners; 44.27 (7) programs to reduce truancy, encourage completion of 44.28 high school, enhance self-concept, provide health services, 44.29 provide nutrition services, provide a safe and secure learning 44.30 environment, provide coordination for pupils receiving services 44.31 from other governmental agencies, provide psychological services 44.32 to determine the level of social, emotional, cognitive, and 44.33 intellectual development, and provide counseling services, 44.34 guidance services, and social work services; 44.35 (8) bilingual programs, bicultural programs, and programs 44.36 forpupilslearners of limited English proficiency; 45.1 (9) all day kindergarten; 45.2 (10) extended school day and extended school year programs; 45.3and45.4 (11) substantial parent involvement in developing and 45.5 implementing remedial education or intervention plans for a 45.6 learner, including learning contracts between the school, the 45.7 learner, and the parent that establish achievement goals and 45.8 responsibilities of the learner and the learner's parent or 45.9 guardian; and 45.10 (12) other methods to increase achievement, as needed. 45.11 Subd. 1a. [BUILDING ALLOCATION.] A district must consider 45.12 the concentration of children from low-income families, children 45.13 with limited English proficiency, and children whose progress 45.14 toward meeting state or local content or performance standards 45.15 is below the level that is appropriate for learners of their age 45.16 in each school building in the district when allocating 45.17compensatorybasic skills revenue. 45.18 Subd. 2. [SEPARATE ACCOUNTS.] Each district that 45.19 receivescompensatory educationbasic skills revenue shall 45.20 maintain separate accounts to identify expenditures for salaries 45.21 and programs related to this revenue. 45.22 Subd. 3. [ANNUAL EXPENDITURE REPORT.] Each year a district 45.23 that receivescompensatory educationbasic skills revenue shall 45.24 submit a report identifying the expenditures it incurredin45.25providing compensatory education to the pupils described into 45.26 meet the needs of eligible learners under subdivision 1. The 45.27 report must conform to uniform financial and reporting standards 45.28 established for this purpose. 45.29 Sec. 55. Laws 1991, chapter 265, article 1, section 30, as 45.30 amended by Laws 1993, chapter 224, article 8, section 19, is 45.31 amended to read: 45.32 Sec. 30. [BADGER SCHOOL DISTRICT FUND BALANCE.] 45.33 If independent school district No. 676, Badger, receives 45.34 payment of delinquent property taxes from one taxpayer and the 45.35 payment is more than five percent of the total property taxes 45.36 paid in the fiscal year in which the payment is received, 46.1 general education revenue for the district shall not be reduced 46.2 according to Minnesota Statutes, section 124A.26, subdivision 1, 46.3 for an excess fund balance attributed to the payment for the 46.4 followingfiveten fiscal years. 46.5 Sec. 56. Laws 1992, chapter 499, article 7, section 31, is 46.6 amended to read: 46.7 Sec. 31. [REPEALER.] 46.8Minnesota Statutes 1990, sections 124A.02, subdivision 24;46.9124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3;46.10124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota46.11Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and46.1223; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i;46.13124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9;46.14124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision46.151; and 124A.29, subdivision 1, are repealed effective June 30,46.161999;Laws 1991, chapter 265, article 7, section 35, is repealed. 46.17 Sec. 57. Laws 1995, First Special Session chapter 3, 46.18 article 1, section 56, is amended to read: 46.19 Sec. 56. [SUPPLEMENTAL REVENUE REDUCTION.] 46.20For fiscal years 1996 and 1997,If a district's ratio of 46.21 1992 adjusted net tax capacity divided by 1994-1995 actual pupil 46.22 units to $9,025 is less than or equal to .25, then the 46.23 difference under Minnesota Statutes, section 124A.22, 46.24 subdivision 9, clause (2), is equal to $25 for purposes of 46.25 computing the district's supplemental revenue under Minnesota 46.26 Statutes, section 124A.22, subdivision 8. For purposes of 46.27 computing the referendum allowance reduction under Minnesota 46.28 Statutes, section 124A.03, subdivision 3b, the supplemental 46.29 revenue reduction shall be computed according to Minnesota 46.30 Statutes, section 124A.22, subdivision 9. 46.31 Sec. 58. Laws 1995, First Special Session chapter 3, 46.32 article 2, section 52, is amended to read: 46.33 Sec. 52. [TRANSPORTATION AIDS AND LEVIES; SUSPENSION.] 46.34 Minnesota Statutes 1994, sections 124.225, subdivisions 1, 46.35 3a, 7a, 7b, 7d, 7e, 8a, and 8k, 8m, and 10; and 124.226, 46.36 subdivisions 1, 2, 3a, 4, 5, 6, 7, and 8, do not apply to aids 47.1 payable in fiscal years 1997 and 1998 or to levies made in 1995 47.2 and 1996 for taxes payable in 1996 and 1997. 47.3 Sec. 59. [PILOT PROJECT.] 47.4 Subdivision 1. [FOUR-PERIOD DAY CURRICULUM PROJECT.] The 47.5 senior high site councils in the independent school district No. 47.6 833, south Washington county, shall develop and implement a 47.7 model four-period day curriculum during the 1997-1998 and 47.8 1998-1999 school years. The site councils shall seek input from 47.9 parents, teachers, and students in the design and implementation 47.10 of the four-period day model. If one or more site councils 47.11 determine a four-period day model is not desirable, the site 47.12 council shall report its recommendations back to the board and 47.13 need not proceed with the development and implementation of the 47.14 model. 47.15 Subd. 2. [MONITORING AND REPORT.] The south Washington 47.16 county school board shall develop a system for monitoring and 47.17 evaluating the development and implementation of the four-period 47.18 day models at its high schools. The board shall monitor and 47.19 evaluate: (1) the process used by the site council to discuss, 47.20 develop, and implement a four-period day; and (2) the academic 47.21 outcomes of students after the four-period day has been fully 47.22 implemented. To evaluate the academic outcomes of students, the 47.23 district shall compare the academic achievement of its high 47.24 school students with the achievement of students in similar 47.25 school districts using a six-period day model. The board shall 47.26 report the results of its evaluation to the commissioner of 47.27 children, families, and learning on August 30, 1998, and August 47.28 30, 1999. The reports shall include a detailed description of 47.29 the site-based, decision-making model that was used to develop 47.30 and implement the four-period day and the steps that were taken 47.31 to successfully implement and evaluate the model. 47.32 Subd. 3. [CLASS SIZE MITIGATION PILOT 47.33 PROJECT.] Independent school district No. 833, South Washington 47.34 County, shall complete a class size mitigation pilot project to 47.35 explore options for improving learning outcomes in elementary 47.36 and junior high classrooms with 30 or more students. The 48.1 options for mitigating the adverse impacts of large class sizes 48.2 shall be developed and implemented using a site-based management 48.3 decision-making process. The district shall report the results 48.4 of its pilot project to the commissioner of children, families, 48.5 and learning by August 30, 1998. 48.6 Sec. 60. [RESTORATION OF REVENUE LOST TO FUND BALANCE 48.7 REDUCTION; MADELIA.] 48.8 Subdivision 1. [AID ADJUSTMENT.] Notwithstanding Minnesota 48.9 Statutes, section 124A.26, subdivision 3, general education aid 48.10 for independent school district No. 837, Madelia, shall not be 48.11 reduced for fiscal year 1997. 48.12 Subd. 2. [LEVY ADJUSTMENT.] Independent school district No. 48.13 837, Madelia, may make a positive levy adjustment for taxes 48.14 payable in 1998 equal to the amount of the general education 48.15 levy reduction required under Minnesota Statutes, section 48.16 124A.26, subdivision 2, attributed to fiscal year 1997. 48.17 Sec. 61. [RESTORATION OF REVENUE LOST TO FUND BALANCE 48.18 REDUCTION; HERMAN-NORCROSS.] 48.19 Subdivision 1. [AID ADJUSTMENT.] Notwithstanding Minnesota 48.20 Statutes, section 124A.26, subdivision 3, general education aid 48.21 for independent school district No. 264, Herman-Norcross, shall 48.22 not be reduced for fiscal year 1997. 48.23 Subd. 2. [LEVY ADJUSTMENT.] Independent school district No. 48.24 264, Herman-Norcross, may make a positive levy adjustment for 48.25 taxes payable in 1998 equal to the amount of the general 48.26 education levy reduction required under Minnesota Statutes, 48.27 section 124A.26, subdivision 2, attributed to fiscal year 1997. 48.28 Sec. 62. [LEVY ADJUSTMENT ATTRIBUTABLE TO THE REPEAL OF 48.29 THE K-12 APPROPRIATIONS CAPS.] 48.30 Notwithstanding Minnesota Statutes, section 124.918, 48.31 subdivision 6, a school district may spread any positive 48.32 referendum levy adjustments for fiscal year 1998 resulting from 48.33 the enactment of Laws 1997, chapter 1, over a three-year period 48.34 beginning with taxes payable in 1998. 48.35 Sec. 63. [BUS PURCHASE LEVY.] 48.36 For 1997 taxes payable in 1998, a school district may levy 49.1 the amount necessary to eliminate the deficit in the reserved 49.2 fund balance account for bus purchases in its transportation 49.3 fund as of June 30, 1996. 49.4 Sec. 64. [TRANSPORTATION GRANTS TO ACCOMMODATE LATER 49.5 SCHOOL START TIMES.] 49.6 Subdivision 1. [ESTABLISHMENT.] A grant program for fiscal 49.7 year 1998 is established to provide adjustments in 49.8 transportation funding to school districts establishing school 49.9 start times after 8:00 a.m. The purpose of the program is to 49.10 explore the school district options for supporting family 49.11 schedules, reducing teenagers' sleep deprivation and increasing 49.12 their learning alertness, keeping children safe from 49.13 unstructured time alone in the afternoon, and limiting 49.14 opportunities for children to engage in at-risk behavior. 49.15 Subd. 2. [ELIGIBILITY.] An applicant for a grant must be a 49.16 school district with an administrative office located in the 49.17 seven-county metropolitan area. To be eligible for a grant, a 49.18 school district must not require a secondary school enrolling 49.19 students in any portion of grades 7 through 12 within the 49.20 district to begin the school day before 8:00 a.m. 49.21 Subd. 3. [APPLICATION PROCESS.] To obtain a grant for 49.22 adjustments in transportation funding to accommodate an 8:00 49.23 a.m. or later school start time, a district must submit an 49.24 application to the commissioner of children, families, and 49.25 learning in the form and manner the commissioner prescribes. 49.26 The application must indicate the district's school start time 49.27 and describe how the district anticipates adjusting its 49.28 transportation schedules to accommodate that start time. The 49.29 commissioner may require an applicant to provide additional 49.30 information. 49.31 Subd. 4. [GRANT AWARDS; PROCEEDS.] The commissioner may 49.32 award up to ten grants of up to $50,000 per grant. The 49.33 commissioner shall base the amount of the grant on the number of 49.34 children and families expected to be affected by the later 49.35 school start time. Grant recipients shall use the money for 49.36 transportation adjustments to accommodate the later school start 50.1 time. 50.2 Subd. 5. [EVALUATION.] The commissioner shall evaluate the 50.3 impact of the program on the grant recipients and recommend to 50.4 the education committees of the legislature by February 15, 50.5 1999, whether to extend the program. 50.6 Sec. 65. [PERMANENT SCHOOL FUND PORTFOLIO RESTRUCTURING.] 50.7 The state board of investment is encouraged to shift the 50.8 portfolio of permanent school fund investments so that the 50.9 portfolio is more evenly balanced between equities and bonds. 50.10 Sec. 66. [PRIVATE ALTERNATIVE SCHOOL EVALUATION.] 50.11 The state board of education shall evaluate the performance 50.12 of private alternative schools authorized according to Minnesota 50.13 Statutes, section 126.22. 50.14 The state board may request any necessary information from 50.15 the private alternative school or the contracting school 50.16 district. The state board may provide assistance to a school 50.17 district in evaluating a private alternative school that has 50.18 been contracted with by a school board. The board must report 50.19 annually to the education committees of the legislature on the 50.20 results of its evaluations. 50.21 Sec. 67. [LEP CONCENTRATION AID; FISCAL YEAR 1998.] 50.22 For fiscal year 1998 only, a school district's LEP revenue 50.23 under Minnesota Statutes, section 124.273, subdivision 1g, is 50.24 increased by $165 times the district's LEP pupil units 50.25 determined according to article 2, section 3. 50.26 Sec. 68. [CONVERSION TO MFIP-S.] 50.27 The commissioner of children, families, and learning shall 50.28 recommend to the education committees of the legislature, by 50.29 February 1, 1998, an appropriate adjustment to the AFDC pupil 50.30 count to compensate for the differing distribution of basic 50.31 skills revenue because of the replacement of the AFDC program 50.32 with MFIP-S. 50.33 Sec. 69. [SHIFT SIMPLIFICATION APPROPRIATION.] 50.34 $18,700,000 is appropriated in fiscal year 1997 from the 50.35 general fund to the commissioner of children, families, and 50.36 learning for additional general education aid for the 51.1 simplification of the property tax revenue recognition shift 51.2 according to this article. 51.3 Sec. 70. [APPROPRIATIONS.] 51.4 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 51.5 LEARNING.] The sums indicated in this section are appropriated 51.6 from the general fund to the department of children, families, 51.7 and learning for the fiscal years designated. 51.8 Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 51.9 general and supplemental education aid: 51.10 $2,524,183,000 ..... 1998 51.11 $2,495,217,000 ..... 1999 51.12 The 1998 appropriation includes $227,499,000 for 1997 and 51.13 $2,296,684,000 for 1998. 51.14 The 1999 appropriation includes $240,444,000 for 1998 and 51.15 $2,254,773,000 for 1999. 51.16 Of the 1998 appropriation, the first $113,800,000 is from 51.17 the education aids reserve of the general fund. 51.18 Subd. 3. [TRANSPORTATION AID.] For transportation aid 51.19 according to Minnesota Statutes, section 124.225: 51.20 $172,141,000 ..... 1999 51.21 The appropriation is based on an aid entitlement of $191,267,000. 51.22 Subd. 4. [TRANSPORTATION SAFETY.] For student 51.23 transportation safety aid according to Minnesota Statutes, 51.24 section 124.225, subdivision 8m: 51.25 $3,430,000 ..... 1998 51.26 $3,458,000 ..... 1999 51.27 The 1998 appropriation includes $129,000 for 1997 and 51.28 $3,301,000 for 1998. 51.29 The 1999 appropriation includes $144,000 for 1997 and 51.30 $3,314,000 for 1998. 51.31 Up to $2,000,000 each year is for school districts for 51.32 school bus safety projects including, but not limited to: (1) 51.33 costs associated with purchasing and retrofitting school buses 51.34 with seatbelts; (2) adult bus monitors; (3) video cameras; (4) 51.35 crossing arms; or (5) strobe lights. 51.36 Subd. 5. [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 52.1 transportation of pupils attending post-secondary institutions 52.2 according to Minnesota Statutes, section 123.3514, or for 52.3 transportation of pupils attending nonresident districts 52.4 according to Minnesota Statutes, section 120.062: 52.5 $102,000 ..... 1998 52.6 $102,000 ..... 1999 52.7 Any balance in the first year does not cancel but is 52.8 available in the second year. 52.9 Subd. 6. [WIDE AREA TRANSPORTATION SERVICE PILOT PROJECT.] 52.10 To expand the wide area transportation service project: 52.11 $100,000 ..... 1998 52.12 $ 50,000 ..... 1999 52.13 The purpose is to expand the project for the computerized 52.14 mapping and scheduling programs for school districts to jointly 52.15 provide transportation services for low-incidence programs in 52.16 the metropolitan area. These services include, but are not 52.17 limited to, transportation for special education, nonpublic 52.18 pupils, results-oriented charter schools, enrollment options 52.19 programs, area learning center programs, and desegregation 52.20 programs. The department shall work with representatives of the 52.21 affected programs, transportation managers from both 52.22 metropolitan and rural districts, and the metropolitan council. 52.23 The department shall contract for services as appropriate. The 52.24 project shall consider the relationship of education 52.25 transportation with transportation services provided by 52.26 noneducation agencies. 52.27 Any balance in the first year does not cancel but is 52.28 available in the second year. 52.29 Subd. 7. [INTERDISTRICT DESEGREGATION OR INTEGRATION 52.30 TRANSPORTATION GRANTS.] For interdistrict desegregation or 52.31 integration transportation grants under Minnesota Statutes, 52.32 section 124.227: 52.33 $800,000 ..... 1998 52.34 $970,000 ..... 1999 52.35 Any balance in the first year does not cancel but is 52.36 available in the second year. 53.1 Subd. 8. [TARGETED NEEDS TRANSPORTATION AID.] For aid 53.2 payments for targeted needs transportation aid under Minnesota 53.3 Statutes, section 124.225, subdivision 13: 53.4 $76,195,000 ..... 1998 53.5 $ 7,671,000 ..... 1999 53.6 The 1998 appropriation includes $7,148,000 for 1997 and 53.7 $69,047,000 for 1998. 53.8 The 1999 appropriation includes $7,671,000 for 1998 and $0 53.9 for 1999. 53.10 Subd. 9. [COMPUTERIZED TRANSPORTATION ROUTING.] For a 53.11 grant to the Minnesota river valley special education 53.12 cooperative, joint powers district No. 993, to establish and 53.13 implement a computerized transportation routing system for 53.14 special education students: 53.15 $70,000 ..... 1998 53.16 This appropriation is available until June 30, 1998. 53.17 Subd. 10. [HEALTH AND SAFETY AID.] For health and safety 53.18 aid according to Minnesota Statutes, section 124.83, subdivision 53.19 5: 53.20 $14,081,000 ..... 1998 53.21 $14,179,000 ..... 1999 53.22 The 1998 appropriation includes $1,132,000 for 1997 and 53.23 $12,949,000 for 1998. 53.24 The 1999 appropriation includes $1,440,000 for 1998 and 53.25 $12,739,000 for 1999. 53.26 Subd. 11. [DEBT SERVICE AID.] For debt service aid 53.27 according to Minnesota Statutes, section 124.95, subdivision 5: 53.28 $35,480,000 ..... 1998 53.29 $38,159,000 ..... 1999 53.30 The 1998 appropriation includes $3,313,000 for 1997 and 53.31 $32,167,000 for 1998. 53.32 The 1999 appropriation includes $3,574,000 for 1998 and 53.33 $34,585,000 for 1999. 53.34 Subd. 12. [MODEL FOUR-PERIOD DAY GRANT.] For a grant to 53.35 independent school district No. 833, south Washington county, 53.36 for the development and implementation of a model four-period 54.1 day curriculum using a site-based, decision-making model: 54.2 $200,000 ..... 1998 54.3 Up to $100,000 of the grant funds may be used for all costs 54.4 associated with the development and implementation of the model, 54.5 including, but not limited to, staff development, curriculum 54.6 development, textbooks, equipment and supplies, and salaries and 54.7 benefits of the additional teachers necessary to fully staff the 54.8 expanded number of class sections. No funds shall be dispersed 54.9 by the commissioner unless at least one site council proceeds to 54.10 fully develop and implement a model four-period day curriculum. 54.11 Up to $100,000 of the grant funds may be used for the class 54.12 size mitigation pilot project. 54.13 This appropriation is available until June 30, 1999. 54.14 Subd. 13. [SCHOOL START TIME GRANTS.] For grants to 54.15 provide adjustments in transportation funding to school 54.16 districts establishing school start times after 8:00 a.m. 54.17 $500,000 ..... 1998 54.18 This appropriation is available until June 30, 1999. 54.19 Sec. 71. [REPEALER.] 54.20 (a) Minnesota Statutes 1996, sections 121.904, subdivision 54.21 4d; 124A.697; 124A.698; 124A.70; 124A.71; 124A.711; 124A.72; and 54.22 124A.73, are repealed. 54.23 (b) Minnesota Statutes 1996, sections 124.225, subdivisions 54.24 13, 14, 15, 16, and 17; 124.226, subdivisions 1, 3, 3a, 6, and 54.25 10; and 124A.22, subdivisions 13 and 13a, are repealed effective 54.26 for revenue for fiscal year 1999. 54.27 Sec. 72. [EFFECTIVE DATE.] 54.28 (a) Sections 2, 12, 14 to 16, 24, 33 to 38, 55, 58, 60, 61, 54.29 and 64 are effective the day following final enactment. 54.30 (b) Sections 47 to 49, and 54 are effective for fiscal year 54.31 1999. 54.32 ARTICLE 2 54.33 SPECIAL PROGRAMS 54.34 Section 1. Minnesota Statutes 1996, section 120.181, is 54.35 amended to read: 54.36 120.181 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 55.1 EDUCATION AND TRANSPORTATION.] 55.2 The responsibility for providing instruction and 55.3 transportation for a pupil without a disability who has a 55.4 short-term or temporary physical or emotional illness or 55.5 disability, as determined by the standards of the state board, 55.6 and who is temporarily placed for care and treatment for that 55.7 illness or disability, shall be determined as provided in this 55.8 section. 55.9 (a) The school district of residence of the pupil shall be 55.10 the district in which the pupil's parent or guardian resides, or 55.11 when neither the pupil's parent or guardian resides within the 55.12 state and tuition has been denied, the district designated by 55.13 the commissioner of children, families, and learningif neither55.14parent nor guardian is living within the state. 55.15 (b) Prior to the placement of a pupil for care and 55.16 treatment, the district of residence shall be notified and 55.17 provided an opportunity to participate in the placement 55.18 decision. When an immediate emergency placement is necessary 55.19 and time does not permit resident district participation in the 55.20 placement decision, the district in which the pupil is 55.21 temporarily placed, if different from the district of residence, 55.22 shall notify the district of residence of the emergency 55.23 placement within 15 days of the placement. 55.24 (c) When a pupil without a disability is temporarily placed 55.25 for care and treatment in a day program and the pupil continues 55.26 to live within the district of residence during the care and 55.27 treatment, the district of residence shall provide instruction 55.28 and necessary transportation for the pupil. The district may 55.29 provide the instruction at a school within the district of 55.30 residence, at the pupil's residence, or in the case of a 55.31 placement outside of the resident district, in the district in 55.32 which the day treatment program is located by paying tuition to 55.33 that district. The district of placement may contract with a 55.34 facility to provide instruction by teachers licensed by the 55.35 state board of teaching. 55.36 (d) When a pupil without a disability is temporarily placed 56.1 in a residential program for care and treatment, the district in 56.2 which the pupil is placed shall provide instruction for the 56.3 pupil and necessary transportation while the pupil is receiving 56.4 instruction, and in the case of a placement outside of the 56.5 district of residence, the nonresident district shall bill the 56.6 district of residence for the actual cost of providing the 56.7 instruction for the regular school year and for summer school, 56.8 excluding transportation costs. When a pupil without a 56.9 disability is temporarily placed in a residential program 56.10 outside the district of residence, the administrator of the 56.11 court placing the pupil shall send timely written notice of the 56.12 placement to the district of residence. The district of 56.13 placement may contract with a residential facility to provide 56.14 instruction by teachers licensed by the state board of teaching. 56.15 (e) The district of residence shall include the pupil in 56.16 its residence count of pupil units and pay tuition as provided 56.17 in section 124.18 to the district providing the instruction. 56.18 Transportation costs shall be paid by the district providing the 56.19 transportation and the state shall pay transportation aid to 56.20 that district. For purposes of computing state transportation 56.21 aid, pupils governed by this subdivision shall be included in 56.22 the disabled transportation category. 56.23 Sec. 2. Minnesota Statutes 1996, section 124.17, is 56.24 amended by adding a subdivision to read: 56.25 Subd. 6. [LEP PUPIL UNITS.] (a) Limited English 56.26 proficiency pupil units for fiscal year 1998 and thereafter 56.27 shall be determined according to this subdivision. 56.28 (b) The limited English proficiency concentration 56.29 percentage for a district equals the product of 100 times the 56.30 ratio of: 56.31 (1) the number of pupils of limited English proficiency 56.32 residing in the district during the current fiscal year; to 56.33 (2) the number of pupils in average daily membership 56.34 residing in the district. 56.35 (c) The limited English proficiency pupil units for each 56.36 pupil enrolled in a program for pupils of limited English 57.1 proficiency in accordance with sections 126.261 to 126.269 57.2 equals the lesser of one or the quotient obtained by dividing 57.3 the limited English proficiency concentration percentage for the 57.4 pupil's district of residence by 11.5. 57.5 (d) Limited English proficiency pupil units shall be 57.6 counted by the district of enrollment. 57.7 Sec. 3. Minnesota Statutes 1996, section 124.248, 57.8 subdivision 3, is amended to read: 57.9 Subd. 3. [SPECIAL EDUCATIONAND LIMITED ENGLISH57.10PROFICIENCYAID.] Except as provided in subdivision 1a, 57.11 paragraph (b), special education aid shall be paid to a charter 57.12 school according to sections 124.3201 and 124.3202, as though it 57.13 were a school district. The charter school may charge tuition 57.14 to the district of residence as provided in section 120.17, 57.15 subdivision 4.Limited English proficiency programs aid shall57.16be paid to a charter school according to section 124.273 as57.17though it were a school district.The charter school shall 57.18 allocate its special education levy equalization revenue to the 57.19 resident districts of the pupils attending the charter school. 57.20 The districts of residence shall levy as though they were 57.21 participating in a cooperative, as provided in section 124.321, 57.22 subdivision 3. 57.23 Sec. 4. Minnesota Statutes 1996, section 124.2613, 57.24 subdivision 3, is amended to read: 57.25 Subd. 3. [QUALIFYING SCHOOL SITE.] (a) The commissioner 57.26 shall rank all school sites with kindergarten programs that do 57.27 not exclusively serve students under section 120.17. The 57.28 ranking must be from highest to lowest based on the site's free 57.29 and reduced lunch count as a percent of the fall enrollment 57.30 using the preceding October 1 enrollment data. Once a school 57.31 site is calculated to be eligible, it remains eligible for the 57.32 duration of the pilot program. For each school site, the 57.33 percentage used to calculate the ranking must be the greater of 57.34 (1) the percent of the fall kindergarten enrollment receiving 57.35 free and reduced lunch, or (2) the percent of the total fall 57.36 enrollment receiving free and reduced lunch. The list of ranked 58.1 sites must be separated into the following geographic areas: 58.2 Minneapolis district, St. Paul district, suburban Twin Cities 58.3 districts in the seven-county metropolitan area, and school 58.4 districts in greater Minnesota. 58.5 (b) The commissioner shall establish a process and 58.6 timelines to qualify school sites for the next school year. 58.7 School sites must be qualified in each geographic area from the 58.8 list of ranked sites until the estimated revenue available for 58.9 this program has been allocated. The total estimated revenue of 58.10 $3,500,000 must be distributed to qualified school sites in each 58.11 geographic area as follows: 25 percent for Minneapolis sites, 58.12 25 percent for St. Paul sites, 25 percent for suburban Twin 58.13 Cities sites, and 25 percent for greater Minnesota. 58.14 Sec. 5. Minnesota Statutes 1996, section 124.2613, 58.15 subdivision 6, is amended to read: 58.16 Subd. 6. [PREPAREDNESS REVENUE.] (a) A qualifying school 58.17 district is eligible for first-grade preparedness revenue equal 58.18 to the basic formula allowance for that year times the number of 58.19 pupil units calculated according to paragraph (b) in each 58.20 qualifying school site. If the first-grade preparedness revenue 58.21 is insufficient to fully fund the formula amounts, the 58.22 commissioner shall prorate the revenue provided to each 58.23 qualifying school site. 58.24 (b) A pupil enrolled in a half-day first-grade preparedness 58.25 program under this section is counted as .53 pupil units. A 58.26 pupil enrolled in a full-day first-grade preparedness program 58.27 under this section is counted as a kindergarten pupil under 58.28 section 124.17, subdivision 1, plus an additional .53 pupil 58.29 units. 58.30 (c) This revenue must supplement and not replace 58.31 compensatory revenue that the district uses for the same or 58.32 similar purposes under chapter 124A. 58.33 (d) A pupil enrolled in the first grade preparedness 58.34 program at a qualifying school site is eligible for 58.35 transportation under section 123.39, subdivision 1. 58.36 (e) For fiscal year 1998, first grade preparedness revenue 59.1 paid to a charter school for which a school district is 59.2 providing transportation according to section 120.064, 59.3 subdivision 15, shall be decreased by an amount equal to the 59.4 product of $170 times the pupil units calculated according to 59.5 paragraph (b). This amount shall be paid to the school district 59.6 for transportation costs. 59.7 Sec. 6. Minnesota Statutes 1996, section 124.273, 59.8 subdivision 1d, is amended to read: 59.9 Subd. 1d. [LEP BASE REVENUE.] (a) The limited English 59.10 proficiency programs base revenue equals the sum of the 59.11 following amounts, computed using base year data: 59.12 (1) 68 percent of the salary of one full-time equivalent 59.13 teacher for each 40 pupils of limited English proficiency 59.14 enrolled, or 68 percent of the salary of one-half of a full-time 59.15 teacher in a district with 20 or fewer pupils of limited English 59.16 proficiency enrolled; and 59.17 (2) for supplies and equipment purchased or rented for use 59.18 in the instruction of pupils of limited English proficiency an 59.19 amount equal to 47 percent of the sum actually spent by the 59.20 district but not to exceed an average of $47 in any one school 59.21 year for each pupil of limited English proficiency receiving 59.22 instruction. 59.23 (b) For the purposes of this subdivision, a teacher 59.24 includes nonlicensed personnel who provide direct instruction to 59.25 students of limited English proficiency under the supervision of 59.26 a licensed teacher. 59.27 (c) If requested by a school district operating a limited 59.28 English proficiency program during the base year for less than 59.29 the full school year, the commissioner may adjust the base 59.30 revenue to reflect the expenditures that would have occurred 59.31 during the base year had the program been operated for the full 59.32 school year. 59.33 Sec. 7. Minnesota Statutes 1996, section 124.273, 59.34 subdivision 1e, is amended to read: 59.35 Subd. 1e. [AID.] A district's limited English proficiency 59.36 aid for fiscal year1996 and later1998 equals the aid 60.1 percentage factor under section 124.3201, subdivision 1, times 60.2 the district's limited English proficiency revenue. 60.3 Sec. 8. Minnesota Statutes 1996, section 124.273, 60.4 subdivision 1f, is amended to read: 60.5 Subd. 1f. [STATE TOTAL LEP REVENUE.] (a) The state total 60.6 limited English proficiency programs revenue for fiscal 60.7 year19961998 equals$12,202,000$14,629,000. The state total 60.8 limited English proficiency programs revenue for fiscal 60.9 year19971999 equals$13,299,000$16,092,000. 60.10 (b) The state total limited English proficiency programs 60.11 revenue for later fiscal years equals: 60.12 (1) the state total limited English proficiency programs 60.13 revenue for the preceding fiscal year; times 60.14 (2) the program growth factor under section 124.3201, 60.15 subdivision 1; times 60.16 (3) the ratio of the state total number of pupils with 60.17 limited English proficiency for the current fiscal year to the 60.18 state total number of pupils with limited English proficiency 60.19 for the preceding fiscal year. 60.20 Sec. 9. Minnesota Statutes 1996, section 124.273, 60.21 subdivision 5, is amended to read: 60.22 Subd. 5. [NOTIFICATION;AID PAYMENTSREVENUE.] The 60.23 department must promptly inform each applicant district of the 60.24 amount ofaidrevenue it will receive pursuant to this section. 60.25 Sec. 10. [124.3111] [ASSURANCE OF MASTERY PROGRAMS.] 60.26 Subdivision 1. [ELIGIBLE DISTRICTS.] A district with a 60.27 local process to review curriculum and instruction may provide 60.28 an assurance of mastery program to eligible pupils. 60.29 Subd. 2. [ELIGIBLE PUPILS.] A pupil is eligible to receive 60.30 services through an assurance of mastery program if the pupil 60.31 has not demonstrated progress toward mastering the required 60.32 graduation standards, after receiving instruction that was 60.33 designed to enable the pupil to make progress toward mastering 60.34 the required graduation standards in a regular classroom 60.35 setting. To determine pupil eligibility, a district must use a 60.36 process adopted by the school board to review curriculum and 61.1 instruction, for the subjects and at the grade level at which 61.2 the district uses the revenue. 61.3 Subd. 3. [ELIGIBLE SERVICES.] (a) Assurance of mastery 61.4 programs may provide direct instructional services to an 61.5 eligible pupil, or a group of eligible pupils, under the 61.6 following conditions in paragraphs (b) to (d). 61.7 (b) Instruction may be provided at one or more grade levels 61.8 from kindergarten to grade 8 and for students in grades 9 61.9 through 12 who have failed the basic skills tests. If an 61.10 assessment of pupils' needs within a district demonstrates that 61.11 the eligible pupils in grades kindergarten to grade 8 are being 61.12 appropriately served, a district may serve eligible pupils in 61.13 grades 9 to 12. 61.14 (c) Instruction must be provided under the supervision of 61.15 the eligible pupil's regular classroom teacher. Instruction may 61.16 be provided by the eligible pupil's classroom teacher, by 61.17 another teacher, by a team of teachers, or by an education 61.18 assistant or aide. A special education teacher may provide 61.19 instruction, but instruction that is provided under this section 61.20 is not eligible for aid under section 124.3201. 61.21 (d) The instruction that is provided must differ from the 61.22 initial instruction the pupil received in the regular classroom 61.23 setting. The instruction may differ by presenting different 61.24 curriculum than was initially presented in the regular classroom 61.25 or by presenting the same curriculum: 61.26 (1) at a different rate or in a different sequence than it 61.27 was initially presented; 61.28 (2) using different teaching methods or techniques than 61.29 were used initially; or 61.30 (3) using different instructional materials than were used 61.31 initially. 61.32 Sec. 11. Minnesota Statutes 1996, section 124.312, 61.33 subdivision 4, is amended to read: 61.34 Subd. 4. [INTEGRATION REVENUE.] For fiscalyearyears 61.35 1996, 1997, andlater fiscal years1998, integration revenue 61.36 equals the sum of integration aid and integration levy under 62.1 section 124.912, subdivision 2. 62.2 Sec. 12. Minnesota Statutes 1996, section 124.312, 62.3 subdivision 5, is amended to read: 62.4 Subd. 5. [INTEGRATION AID.] For fiscalyearyears 1996, 62.5 1997, andlater fiscal years1998, integration aid equals the 62.6 following amounts: 62.7 (1) for independent school district No. 709, Duluth, 62.8 $1,385,000; 62.9 (2) for independent school district No. 625, St. Paul, 62.10 $8,090,700; and 62.11 (3) for special school district No. 1, Minneapolis, 62.12 $9,368,300. 62.13 Sec. 13. Minnesota Statutes 1996, section 124.313, is 62.14 amended to read: 62.15 124.313 [TARGETED NEEDS REVENUE.] 62.16 For fiscalyearyears 1996, 1997, andthereafter1998, a 62.17 school district's targeted needs revenue equals the sum of: 62.18 (1) assurance of mastery revenue according to section 62.19 124.311; plus 62.20 (2) the district's limited English proficiency revenue 62.21 computed according to section 124.273, subdivision 1d; plus 62.22 (3) integration revenue computed according to section 62.23 124.312, subdivision 4. 62.24 Sec. 14. Minnesota Statutes 1996, section 124.314, 62.25 subdivision 1, is amended to read: 62.26 Subdivision 1. [AID.] For fiscalyearyears 1996, 1997, 62.27 andthereafter1998, a school district's targeted needs aid 62.28 equals the sum of its assurance of mastery aid according to 62.29 section 124.311, its limited English proficiency aid according 62.30 to section 124.273, subdivision 1e, and its integration aid 62.31 according to section 124.312, subdivision 5. 62.32 Sec. 15. Minnesota Statutes 1996, section 124.314, 62.33 subdivision 2, is amended to read: 62.34 Subd. 2. [LEVY.] For fiscalyearyears 1996, 1997, and 62.35thereafter1998, a school district's targeted needs levy equals 62.36 the sum of its integration levy under section 124.912, 63.1 subdivision 2, and that portion of its special education levy 63.2 attributed to the limited English proficiency program. 63.3 Sec. 16. [124.315] [INTEGRATION REVENUE.] 63.4 Subdivision 1. [USE OF THE REVENUE.] Integration revenue 63.5 under this section must be used for programs established under a 63.6 desegregation plan mandated by the state board or under court 63.7 order, to increase learning opportunities and reduce the 63.8 learning gap between learners living in high concentrations of 63.9 poverty and their peers. 63.10 Subd. 2. [SEPARATE ACCOUNT.] Integration revenue shall be 63.11 maintained in a separate account to identify expenditures for 63.12 salaries and programs related to this revenue. 63.13 Subd. 3. [INTEGRATION REVENUE.] For fiscal year 1999 and 63.14 later fiscal years, integration revenue equals the following 63.15 amounts: 63.16 (1) for independent school district No. 709, Duluth, $193 63.17 times the actual pupil units for the school year; 63.18 (2) for independent school district No. 625, St. Paul, $427 63.19 times the actual pupil units for the school year; 63.20 (3) for special school district No. 1, Minneapolis, $523 63.21 times the actual pupil units for the school year; and 63.22 (4) for a district not listed in clause (1), (2), or (3) 63.23 that is required to implement a plan according to the 63.24 requirements of Minnesota Rules, parts 3535.0200 to 3535.2200, 63.25 the lesser of the actual cost of implementing the plan during 63.26 the fiscal year or $93 times the actual pupil units for the 63.27 school year. 63.28 Subd. 4. [INTEGRATION LEVY.] A district may levy an amount 63.29 equal to 46 percent of the district's integration revenue as 63.30 defined in subdivision 3. 63.31 Subd. 5. [INTEGRATION AID.] A district's integration aid 63.32 equals 54 percent of the district's integration revenue as 63.33 defined in subdivision 3. 63.34 Subd. 6. [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 63.35 integration aid under subdivision 5 must be adjusted for each 63.36 pupil attending a nonresident district under sections 120.062, 64.1 120.075, 120.0751, 120.0752, and 124C.45 to 124C.48 if the 64.2 enrollment of the pupil in the nonresident district contributes 64.3 to desegregation or integration purposes. The adjustments must 64.4 be made according to this subdivision. 64.5 (b) Aid paid to the district of the pupil's residence must 64.6 be reduced by an amount equal to the revenue per actual pupil 64.7 unit of the resident district times the number of actual pupil 64.8 units attributable to the pupil for the time the pupil is 64.9 enrolled in a nonresident district. 64.10 (c) Aid paid to a district serving nonresidents must be 64.11 increased by an amount equal to the aid reduction to the 64.12 resident district under paragraphs (b) and (d). 64.13 (d) If the amount of the reduction to be made from the aid 64.14 of a district is greater than the amount of aid otherwise due 64.15 the district, the excess reduction must be made from other state 64.16 aids due the district. 64.17 Sec. 17. Minnesota Statutes 1996, section 124.3201, 64.18 subdivision 1, is amended to read: 64.19 Subdivision 1. [DEFINITIONS.] For the purposes of this 64.20 section and sections 124.3202 and 124.321, the definitions in 64.21 this subdivision apply. 64.22 (a) "Base year" for fiscal year1996 and fiscal year 199764.23means the 1994 summer program and the 1994-1995 school year.64.24Base year for1998 and later fiscal years means the second 64.25 fiscal year preceding the fiscal year for which aid will be paid. 64.26 (b) "Basic revenue" has the meaning given it in section 64.27 124A.22, subdivision 2. For the purposes of computing basic 64.28 revenue pursuant to this section, each child with a disability 64.29 shall be counted as prescribed in section 124.17, subdivision 1. 64.30 (c) "Essential personnel" means teachers, related services, 64.31 and support services staff providing direct services to students. 64.32 (d) "Average daily membership" has the meaning given it in 64.33 section 124.17. 64.34 (e) "Program growth factor" means 1.00 for fiscal year199864.35 2000 and later. 64.36 (f) "Aid percentage factor" means 60 percent for fiscal 65.1 year 1996, 70 percent for fiscal year 1997, 80 percent for 65.2 fiscal year 1998, 90 percent for fiscal year 1999, and 100 65.3 percent for fiscal years 2000 and later. 65.4 (g) "Levy percentage factor" means 100 minus the aid 65.5 percentage factor for that year. 65.6 Sec. 18. Minnesota Statutes 1996, section 124.3201, 65.7 subdivision 2, is amended to read: 65.8 Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] (a) The special 65.9 education base revenue equals the sum of the following amounts 65.10 computed using base year data: 65.11 (1) 68 percent of the salary of each essential person 65.12 employed in the district's program for children with a 65.13 disability during the regular school year, whether the person is 65.14 employed by one or more districts; 65.15 (2) for the Minnesota state academy for the deaf or the 65.16 Minnesota state academy for the blind, 68 percent of the salary 65.17 of each instructional aide assigned to a child attending the 65.18 academy, if that aide is required by the child's individual 65.19 education plan; 65.20 (3) for special instruction and services provided to any 65.21 pupil by contracting with public, private, or voluntary agencies 65.22 other than school districts, in place of special instruction and 65.23 services provided by the district, 52 percent of the difference 65.24 between the amount of the contract and the basic revenue of the 65.25 district for that pupil for the fraction of the school day the 65.26 pupil receives services under the contract; 65.27 (4) for special instruction and services provided to any 65.28 pupil by contracting for services with public, private, or 65.29 voluntary agencies other than school districts, that are 65.30 supplementary to a full educational program provided by the 65.31 school district, 52 percent of the amount of the contract for 65.32 that pupil; 65.33 (5) for supplies and equipment purchased or rented for use 65.34 in the instruction of children with a disability an amount equal 65.35 to 47 percent of the sum actually expended by the district but 65.36 not to exceed an average of $47 in any one school year for each 66.1 child with a disability receiving instruction;and66.2 (6) for fiscal years 1997 and later, special education base 66.3 revenue shall include amounts under clauses (1) to (5) for 66.4 special education summer programs provided during the base year 66.5 for that fiscal year; and 66.6 (7) for fiscal years 1999 and later, the cost of providing 66.7 transportation services for children with disabilities under 66.8 section 124.225, subdivision 1, paragraph (b), clause (5). 66.9 (b) If requested by a school district operating a special 66.10 education program during the base year for less than the full 66.11 school year, the commissioner may adjust the base revenue to 66.12 reflect the expenditures that would have occurred during the 66.13 base year had the program been operated for the full school year. 66.14 Sec. 19. Minnesota Statutes 1996, section 124.3201, 66.15 subdivision 3, is amended to read: 66.16 Subd. 3. [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For 66.17 fiscal year19961997 and later, a district's adjusted special 66.18 education base revenue equals the district's special education 66.19 base revenue times the ratio of the district's average daily 66.20 membership for the current school year to the district's average 66.21 daily membership for the base year; plus the district's special66.22education tuition revenue under subdivision 2a and special66.23education court placement revenue under subdivision 2b. 66.24 Sec. 20. Minnesota Statutes 1996, section 124.3201, 66.25 subdivision 4, is amended to read: 66.26 Subd. 4. [STATE TOTAL SPECIAL EDUCATION REVENUE.] The 66.27 state total special education revenue for fiscal year19961998 66.28 equals$327,846,000$358,542,000. The state total special 66.29 education revenue for fiscal year19971999 equals 66.30$347,810,000$435,322,000. The state total special education 66.31 revenue for later fiscal years equals: 66.32 (1) the state total special education revenue for the 66.33 preceding fiscal year; times 66.34 (2) the program growth factor; times 66.35 (3) the ratio of the state total average daily membership 66.36 for the current fiscal year to the state total average daily 67.1 membership for the preceding fiscal year. 67.2 Sec. 21. Minnesota Statutes 1996, section 124.321, 67.3 subdivision 1, is amended to read: 67.4 Subdivision 1. [LEVY EQUALIZATION REVENUE.] (a) For fiscal 67.5years 1996 and lateryear 1999, special education levy 67.6 equalization revenue for a school district, excluding an 67.7 intermediate school district, equals the sum of the following 67.8 amounts: 67.9 (1) the levy percentage factor for that year times the 67.10 district's special education revenue under section 124.3201; 67.11 plus 67.12 (2) the levy percentage factor for that year times the 67.13 district's special education summer program revenue under 67.14 section 124.3202; plus 67.15 (3) the levy percentage factor for that year times the 67.16 district's special education excess cost revenue under section 67.17 124.323; plus 67.18 (4) the levy percentage factor for that year times the 67.19 district's secondary vocational education for children with a 67.20 disability revenue under section 124.574; plus67.21(5) the levy percentage factor for that year times the67.22district's limited English proficiency programs revenue under67.23section 124.273. 67.24 Sec. 22. Minnesota Statutes 1996, section 124.323, 67.25 subdivision 1, is amended to read: 67.26 Subdivision 1. [DEFINITIONS.] In this section, the 67.27 definitions in this subdivision apply. 67.28 (a) "Unreimbursed special education cost" means the sum of 67.29 the following: 67.30 (1) expenditures for teachers' salaries, contracted 67.31 services, supplies,andequipment, and transportation services 67.32 eligible for revenue under sections 124.3201 and 124.3202; plus 67.33 (2) expenditures for tuition bills received under section 67.34 120.17 for services eligible for revenue under sections 67.35 124.3201, subdivision 2, and 124.3202, subdivision 1; minus 67.36 (3) revenue for teachers' salaries, contracted services, 68.1 supplies, and equipment under sections 124.3201 and 124.3202; 68.2 minus 68.3 (4) tuition receipts under section 120.17 for services 68.4 eligible for revenue under sections 124.3201, subdivision 2, and 68.5 124.3202, subdivision 1. 68.6 (b) "General revenue," for fiscal year 1996, means the sum 68.7 of the general education revenue according to section 124A.22, 68.8 subdivision 1, as adjusted according to section 124A.036, 68.9 subdivision 5, plus the total referendum revenue according to 68.10 section 124A.03, subdivision 1e. For fiscal years 1997 and 68.11 later, "general revenue" means the sum of the general education 68.12 revenue according to section 124A.22, subdivision 1, as adjusted 68.13 according to section 124A.036, subdivision 5, plus the total 68.14 referendum revenue minus transportation sparsity revenue minus 68.15 total operating capital revenue. 68.16 Sec. 23. Minnesota Statutes 1996, section 124.323, 68.17 subdivision 2, is amended to read: 68.18 Subd. 2. [EXCESS COST REVENUE.] For19961997 and later 68.19 fiscal years, a district's special education excess cost revenue 68.20 equals70the greatest of: 68.21 (a) 70 percent of the difference between (1) the district's 68.22 unreimbursed special education cost and (2)six percent for68.23fiscal year 1996 and5.7 percent for fiscal year1997 and later68.24years1998 and 5.8 percent for fiscal year 1999 and later years 68.25 of the district's general revenue; 68.26 (b) 70 percent of the difference between (1) the increase 68.27 in the district's unreimbursed special education cost between 68.28 the base year as defined in section 124.3201, subdivision 1, and 68.29 the current year and (2) 1.6 percent of the district's general 68.30 revenue and 1.7 percent of the district's general education 68.31 revenue for fiscal years 1999 and later; or 68.32 (c) zero. 68.33 Sec. 24. Minnesota Statutes 1996, section 124.481, is 68.34 amended to read: 68.35 124.481 [INDIAN POST-SECONDARY PREPARATION GRANTS.] 68.36 The state board of education, with the advice of the 69.1 Minnesota Indian scholarship committee, may make grants to 69.2 school districts or tribal grant or contract schools to support 69.3 post-secondary preparation for secondary pupils who are of 69.4 one-fourth or more Indian ancestry and who, in the opinion of 69.5 the superintendent, have the capabilities to benefit from higher 69.6 education. Distribution of the grants must be in accordance 69.7 with a plan prepared by the state board, with the advice of the 69.8 Minnesota Indian scholarship committee, that describes the 69.9 objectives and methods of implementing the grant program, 69.10 including the manner in which grants will be distributed in 69.11 proportion to the geographical distribution of the Indian 69.12 population of the state. 69.13 Sec. 25. Minnesota Statutes 1996, section 124.574, 69.14 subdivision 2d, is amended to read: 69.15 Subd. 2d. [BASE REVENUE.] (a) Thesecondary vocational69.16 school-to-work program-disabledprogrambase revenue equals the 69.17 sum of the following amounts computed using base year data: 69.18 (1) 68 percent of the salary of each essential licensed 69.19 person who provides direct instructional services to students 69.20 employed during that fiscal year for services rendered in that 69.21 district'ssecondary vocational education programs69.22 school-to-work program for children with a disability; 69.23 (2) 47 percent of the costs of necessary equipment for 69.24secondary vocational education programsschool-to-work programs 69.25 for children with a disability; 69.26 (3) 47 percent of the costs of necessary travel between 69.27 instructional sites bysecondary vocational education69.28 school-to-work program teachers of children with a disability 69.29 but not including travel to and from local, regional, district, 69.30 state, or national vocational student organization meetings; 69.31 (4) 47 percent of the costs of necessary supplies for 69.32secondary vocational education programsschool-to-work programs 69.33 for children with a disability but not to exceed an average of 69.34 $47 in any one school year for each child with a disability 69.35 receiving these services; 69.36 (5) forsecondary vocational education programs70.1 school-to-work programs for children with disabilities provided 70.2 by a contract approved by the commissioner with public, private, 70.3 or voluntary agencies other than a Minnesota school district or 70.4 cooperative center, in place of programs provided by the 70.5 district, 52 percent of the difference between the amount of the 70.6 contract and the basic revenue of the district for that pupil 70.7 for the fraction of the school day the pupil receives services 70.8 under the contract; 70.9 (6) forsecondary vocational education programs70.10 school-to-work programs for children with disabilities provided 70.11 by a contract approved by the commissioner with public, private, 70.12 or voluntary agencies other than a Minnesota school district or 70.13 cooperative center, that are supplementary to a full educational 70.14 program provided by the school district, 52 percent of the 70.15 amount of the contract; and 70.16 (7) for a contract approved by the commissioner with 70.17 another Minnesota school district or cooperative center for 70.18 vocational evaluation services for children with a disability 70.19 for children that are not yet enrolled in grade 12, 52 percent 70.20 of the amount of the contract. 70.21 (b) If requested by a school district for school-to-work 70.22 programs during the base year for less than the full school 70.23 year, the commissioner may adjust the base revenue to reflect 70.24 the expenditures that would have occurred during the base year 70.25 had the program been operated for the full year. 70.26 Sec. 26. Minnesota Statutes 1996, section 124.574, 70.27 subdivision 2f, is amended to read: 70.28 Subd. 2f. [STATE TOTALSECONDARY VOCATIONAL-DISABLED70.29 SCHOOL-TO-WORK PROGRAM-DISABLED REVENUE.] The state total 70.30secondary vocational-disabledschool-to-work program-disabled 70.31 revenue for fiscal year19961998 equals$8,520,000$8,924,000. 70.32 The state totalsecondary vocational-disabledschool-to-work 70.33 program-disabled revenue for fiscal year19971999 equals 70.34$8,830,000$8,976,000. The state totalsecondary70.35vocational-disabledschool-to-work program-disabled revenue for 70.36 later fiscal years equals: 71.1 (1) the state totalsecondary vocational-disabled71.2 school-to-work program-disabled revenue for the preceding fiscal 71.3 year; times 71.4 (2) the program growth factor; times 71.5 (3) the ratio of the state total average daily membership 71.6 for the current fiscal year to the state total average daily 71.7 membership for the preceding fiscal year. 71.8 Sec. 27. Minnesota Statutes 1996, section 124.86, 71.9 subdivision 2, is amended to read: 71.10 Subd. 2. [REVENUE AMOUNT.] An American Indian-controlled 71.11 tribal contract or grant school that is located on a reservation 71.12 within the state and that complies with the requirements in 71.13 subdivision 1 is eligible to receive tribal contract or grant 71.14 school aid. The amount of aid is derived by: 71.15 (1) multiplying the formula allowance under section 71.16 124A.22, subdivision 2, times the difference between (a) the 71.17 actual pupil units as defined in section 124A.02, subdivision 71.18 15, in average daily membership, excluding section 124.17, 71.19 subdivision 2f, and (b) the number of pupils for the current 71.20 school year, weighted according to section 124.17, subdivision 71.21 1, receiving benefits under section 123.933 or 123.935 or for 71.22 which the school is receiving reimbursement under section 71.23 126.23; 71.24 (2) adding to the result in clause (1) an amount equal to 71.25 the product of the formula allowance under section 124A.22, 71.26 subdivision 2, times the tribal contract AFDC pupil units; 71.27 (3) subtracting from the result in clause(1)(2) the 71.28 amount of money allotted to the school by the federal government 71.29 through Indian School Equalization Program of the Bureau of 71.30 Indian Affairs, according to Code of Federal Regulations, title 71.31 25, part 39, subparts A to E, for the basic program as defined 71.32 by section 39.11, paragraph (b), for the base rate as applied to 71.33 kindergarten through twelfth grade, excluding small school 71.34 adjustments and additional weighting, but not money allotted 71.35 through subparts F to L for contingency funds, school board 71.36 training, student training, interim maintenance and minor 72.1 repair, interim administration cost, prekindergarten, and 72.2 operation and maintenance, and the amount of money that is 72.3 received according to section 126.23; 72.4(3)(4) dividing the result in clause(2)(3) by the sum 72.5 of the actual pupil units in average daily membership, excluding 72.6 section 124.17, subdivision 2f, plus the tribal contract AFDC 72.7 pupil units;and72.8(4)(5) multiplying the sum of the actual pupil units, 72.9 including section 124.17, subdivision 2f, in average daily 72.10 membership plus the tribal contract AFDC pupil units by the 72.11 lesser of $1,500 or thesum of theresult in clause(3) plus72.12$300(4); and 72.13 (6) For fiscal year 1998 only, the formula allowance used 72.14 in clause (1) is the formula allowance under section 124A.22, 72.15 subdivision 2, minus $170 and the formula allowance in clause 72.16 (2) is the formula allowance under section 124A.22, subdivision 72.17 2, minus $300. 72.18 Sec. 28. Minnesota Statutes 1996, section 124.86, is 72.19 amended by adding a subdivision to read: 72.20 Subd. 5. [TRIBAL CONTRACT PUPIL UNITS.] Pupil units for 72.21 pupils enrolled in tribal contract schools shall be used only 72.22 for the purpose of computing tribal contract aid according to 72.23 this section. 72.24 Sec. 29. Minnesota Statutes 1996, section 124C.45, 72.25 subdivision 1a, is amended to read: 72.26 Subd. 1a. [RESERVE REVENUE.] Each school district that is 72.27 a member of an area learning center must reserve revenue in an 72.28 amount equal to at least 90 percent of thebasicgeneral 72.29 education revenue generated by each student attending an area 72.30 learning center program under this section. The amount of 72.31 reserved revenue under this subdivision may only be spent on 72.32 program costs associated with the area learning center. 72.33 Sec. 30. Minnesota Statutes 1996, section 126.23, 72.34 subdivision 1, is amended to read: 72.35 Subdivision 1. [AID.] If a pupil enrolls in an alternative 72.36 program, eligible under section 126.22, subdivision 3, paragraph 73.1 (d), or subdivision 3a, operated by a private organization that 73.2 has contracted with a school district to provide educational 73.3 services for eligible pupils under section 126.22, subdivision 73.4 2, the district contracting with the private organization must 73.5 reimburse the provider an amount equal to at least 90 percent of 73.6 thebasicaverage general education revenue per pupil of the 73.7 district for each pupil attending the program full time. For a 73.8 pupil attending the program part time,basicgeneral education 73.9 revenue paid to the program shall be reduced proportionately, 73.10 according to the amount of time the pupil attends the program, 73.11 andbasicgeneral education revenue paid to the district shall 73.12 be reduced accordingly. Pupils for whom a district provides 73.13 reimbursement may not be counted by the district for any purpose 73.14 other than computation ofbasicgeneral education revenue, 73.15 according to section 124A.22, subdivision 2. If payment is made 73.16 to a district or program for a pupil under this section, the 73.17 department of children, families, and learning shall not make a 73.18 payment for the same pupil under section 126.22, subdivision 8. 73.19 Sec. 31. Minnesota Statutes 1996, section 126.82, is 73.20 amended to read: 73.21 126.82 [STATE MULTICULTURALEDUCATIONADVISORY COMMITTEE.] 73.22 (a) The commissioner shall appoint a state multicultural 73.23educationadvisory committee to advise the department and the 73.24 state board on multicultural education. The committee must have 73.25 12 members and be composed of representatives from among the 73.26 following groups and community organizations: African-American, 73.27 Asian-Pacific, Hispanic, and American Indian. 73.28 (b) The state committee shall provide information and 73.29 recommendations on: 73.30 (1) department procedures for reviewing and approving 73.31 district plans and disseminating information on multicultural 73.32 education; 73.33 (2) department procedures for improving inclusive education 73.34 plans, curriculum and instruction improvement plans, and 73.35 performance-based assessments; 73.36 (3) developing learner outcomes which are multicultural; 74.1 and 74.2 (4) other recommendations that will further inclusive, 74.3 multicultural education. 74.4 (c) The committee shall also participate in determining the 74.5 criteria for and awarding the grants established under Laws 74.6 1993, chapter 224, article 8, section 22, subdivision 8. 74.7 Sec. 32. Laws 1995, First Special Session chapter 3, 74.8 article 3, section 11, subdivision 1, is amended to read: 74.9 Subdivision 1. [PURPOSE.] A pilot program is established 74.10 to support general education classroom teachers who teach 74.11 children with specific learning disabilities. The goals of the 74.12 pilot program are to: 74.13 (1) increase participation of these children in 74.14 noncategorical programming designed to encourage their maximum 74.15 potential and maintain their self-esteem; 74.16 (2) demonstrate results in measurable educational outcomes; 74.17 (3) provide alternatives to special education that focus on 74.18 children's educational progress and results, respond to the 74.19 individual child, are efficient and cost-effective, and ensure 74.20 the rights of eligible children and their families to due 74.21 process; 74.22 (4) increase general education's ability to educate in a 74.23 manner that decreases the need for pull-out programs for 74.24 students with specific learning disabilities;and74.25 (5) implement alternative approaches to conflict 74.26 resolution; and 74.27 (6) provide assistive technology to make individualized 74.28 student accommodations. 74.29 Sec. 33. Laws 1995, First Special Session chapter 3, 74.30 article 3, section 11, subdivision 2, is amended to read: 74.31 Subd. 2. [DEFINITIONS.] For the purposes of this section 74.32 the terms defined in this subdivision have the meanings given 74.33 them. 74.34 (a) "Accommodation" means any technique that alters the 74.35 educational setting to enable the child to reach the child's 74.36 maximum potential and to demonstrate more accurately the child's 75.1 knowledge and educational progress. Accommodations may include, 75.2 but are not limited to: preferential seating, paraphrasing of 75.3 information, instructions, practice activities and directions 75.4 provided in a manner consistent with the child's learning style, 75.5 opportunity for increased response time, more frequent 75.6 opportunity for review, extended time to complete assignments 75.7 and tests, larger print for assignments or tests, special study 75.8 sheets, extended or untimed tests, oral testing and answering, 75.9 and use of assistive technology within and outside the 75.10 educational environment. 75.11 (b) "Assistive technology device"means any item, piece of75.12equipment, or product system, whether acquired commercially off75.13the shelf, modified, or customized, that is used to increase,75.14maintain, or improve functional capabilitiesis as defined in 75.15 Minnesota Statutes, section 120.187. 75.16 (c) "Competency" means a documented and demonstrated 75.17 attitude, skill, or knowledge base resulting in an ability of 75.18 general education personnel to provide accommodations, 75.19 modifications, and personalized instruction, according to the 75.20 eligible child's individual learning styles, within general 75.21 education environments. 75.22 (d) "Consistently available" means that education personnel 75.23 who demonstrate competency are site-based and designated as a 75.24 resource for the development and use of accommodations, 75.25 modifications, and personalized instruction in general education. 75.26 (e) "Eligible children" means those children who have 75.27 specific learning disabilities or conditions related to these 75.28 disabilities according to recognized professional standards and 75.29 documented by appropriately licensed personnel. 75.30 (f) "Learner plan" means a concise written plan that is 75.31 based on the eligible child's documented specific learning 75.32 disabilities and needs; includes the eligible child's strengths 75.33 that may compensate for those differences and needs; provides 75.34 the child, the child's parent, and all general education 75.35 personnel responsible for direct instruction with information 75.36 that results in clear understanding and subsequent use of 76.1 accommodations, modifications, and personalized instruction; and 76.2 includes methods of evaluating the child's progress that are 76.3 consistent with learning differences, needs, strengths, 76.4 modifications, and accommodations, and are at intervals 76.5 identical to the student population of the school in which the 76.6 child participating in Options Plus is enrolled. 76.7 (g) "Modification" means any technique that alters the 76.8 school work required, makes it different from the school work 76.9 required or other students in the same course, and encourages 76.10 the eligible child to reach the child's maximum potential and 76.11 facilitate educational success. Modifications may include, but 76.12 are not limited to: copies of teacher notes and lesson plans, 76.13 assisted note taking, reduced or altered assignments, increased 76.14 assignments in areas of strength, alternative test formats, 76.15 modified testing, peer assistance, cooperative learning, and 76.16 modified grading such as documentation of progress and results. 76.17 (h) "Parent" means a parent, guardian, or person acting as 76.18 a parent of a child. 76.19 (i) "Personalized instruction" means direct instruction 76.20 designed with knowledge of the child's learning style, 76.21 strengths, and differences, to assist the child to gain in skill 76.22 areas, so the child demonstrates progress toward and outcomes 76.23 necessary to become a successful citizen. 76.24 Sec. 34. Laws 1995, First Special Session chapter 3, 76.25 article 3, section 11, subdivision 5, is amended to read: 76.26 Subd. 5. [USE OF FUNDS.] Options Plus pilot program grants 76.27 shall be used to supplement staff development funding under 76.28 Minnesota Statutes, section 124A.29, to train general education 76.29 classroom teachers to meet the needs of children with specific 76.30 learning disabilities and provide assistive technology devices 76.31 in a general education setting. The training shall result in 76.32 each participating teacher achieving the following competencies: 76.33 (1) understanding and communicating to the parents of the 76.34 child the options available for instruction; 76.35 (2) the ability to assess the learning environment and 76.36 provide the necessary accommodations, modifications, and 77.1 personalized instruction necessary to meet the needs of the 77.2 child;and77.3 (3) the ability to work collaboratively and in teams with 77.4 other teachers and support and related services staff; and 77.5 (4) the ability to teach children to use the assistive 77.6 technology devices. 77.7 Sec. 35. [OSSEO LEVY.] 77.8 For levies payable in 1998 only, independent school 77.9 district No. 279, Osseo, may levy a tax in an amount not to 77.10 exceed $800,000. The proceeds of this levy must be used to 77.11 provide instructional services for at-risk children. 77.12 Sec. 36. [APPROPRIATIONS.] 77.13 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 77.14 LEARNING.] The sums indicated in this section are appropriated 77.15 from the general fund to the department of children, families, 77.16 and learning for the fiscal years designated. 77.17 Subd. 2. [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 77.18 For grants to American Indian language and culture education 77.19 programs according to Minnesota Statutes, section 126.54, 77.20 subdivision 1: 77.21 $591,000 ..... 1998 77.22 $591,000 ..... 1999 77.23 The 1998 appropriation includes $59,000 for 1997 and 77.24 $532,000 for 1998. 77.25 The 1999 appropriation includes $59,000 for 1998 and 77.26 $532,000 for 1999. 77.27 Any balance in the first year does not cancel but is 77.28 available in the second year. 77.29 Subd. 3. [AMERICAN INDIAN EDUCATION.] (a) For certain 77.30 American Indian education programs in school districts: 77.31 $175,000 ..... 1998 77.32 $175,000 ..... 1999 77.33 The 1998 appropriation includes $17,000 for 1997 and 77.34 $158,000 for 1998. 77.35 The 1999 appropriation includes $17,000 for 1998 and 77.36 $158,000 for 1999. 78.1 (b) These appropriations are available for expenditure with 78.2 the approval of the commissioner of the department of children, 78.3 families, and learning. 78.4 (c) The commissioner must not approve the payment of any 78.5 amount to a school district or school under this subdivision 78.6 unless that school district or school is in compliance with all 78.7 applicable laws of this state. 78.8 (d) Up to the following amounts may be distributed to the 78.9 following schools and school districts for each fiscal year: 78.10 $54,800, Pine Point School; $9,800 to independent school 78.11 district No. 166, Cook county; $14,900 to independent school 78.12 district No. 432, Mahnomen; $14,200 to independent school 78.13 district No. 435, Waubun; $42,200 to independent school district 78.14 No. 707, Nett Lake; and $39,100 to independent school district 78.15 No. 38, Red Lake. These amounts must be spent only for the 78.16 benefit of American Indian pupils and to meet established state 78.17 educational standards or statewide requirements. 78.18 (e) Before a district or school can receive money under 78.19 this subdivision, the district or school must submit, to the 78.20 commissioner, evidence that it has complied with the uniform 78.21 financial accounting and reporting standards act, Minnesota 78.22 Statutes, sections 121.904 to 121.917. 78.23 Subd. 4. [AMERICAN INDIAN POST-SECONDARY PREPARATION 78.24 GRANTS.] For American Indian post-secondary preparation grants 78.25 according to Minnesota Statutes, section 124.481: 78.26 $857,000 ..... 1998 78.27 $857,000 ..... 1999 78.28 Any balance in the first year does not cancel but is 78.29 available in the second year. 78.30 Subd. 5. [AMERICAN INDIAN SCHOLARSHIPS.] For American 78.31 Indian scholarships according to Minnesota Statutes, section 78.32 124.48: 78.33 $1,600,000 ..... 1998 78.34 $1,600,000 ..... 1999 78.35 Any balance in the first year does not cancel but is 78.36 available in the second year. 79.1 Subd. 6. [INDIAN TEACHER PREPARATION GRANTS.] (a) For 79.2 joint grants to assist Indian people to become teachers: 79.3 $190,000 ..... 1998 79.4 $190,000 ..... 1999 79.5 (b) Up to $70,000 each year is for a joint grant to the 79.6 University of Minnesota at Duluth and the Duluth school district. 79.7 (c) Up to $40,000 each year is for a joint grant to each of 79.8 the following: 79.9 (1) Bemidji state university and the Red Lake school 79.10 district; 79.11 (2) Moorhead state university and a school district located 79.12 within the White Earth reservation; and 79.13 (3) Augsburg college, independent school district No. 625, 79.14 St. Paul, and the Minneapolis school district. 79.15 (d) Money not used for students at one location may be 79.16 transferred for use at another location. 79.17 (e) Any balance in the first year does not cancel but is 79.18 available in the second year. 79.19 Subd. 7. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 79.20 school aid according to Minnesota Statutes, section 124.86: 79.21 $2,341,000 ..... 1998 79.22 $2,738,000 ..... 1999 79.23 The 1998 appropriation includes $91,000 for 1997 and 79.24 $2,250,000 for 1998. 79.25 The 1999 appropriation includes $249,000 for 1998 and 79.26 $2,489,000 for 1999. 79.27 Subd. 8. [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For 79.28 early childhood family education programs at tribal contract 79.29 schools: 79.30 $68,000 ..... 1998 79.31 $68,000 ..... 1999 79.32 Subd. 9. [AMERICAN SIGN LANGUAGE; TEACHER EDUCATION 79.33 HEARING.] To assist school districts in educating teachers in 79.34 American sign language: 79.35 $13,000 ..... 1998 79.36 $12,000 ..... 1999 80.1 Any balance in the first year does not cancel but is 80.2 available in the second year. 80.3 Subd. 10. [MEXICAN ORIGIN EDUCATION GRANTS.] For grants 80.4 for a Mexican origin education pilot grant program: 80.5 $50,000 ..... 1998 80.6 $25,000 ..... 1999 80.7 Any balance in the first year does not cancel but is 80.8 available in the second year. 80.9 Subd. 11. [LAY ADVOCATES.] To pay or reimburse lay 80.10 advocates for their time and expense as provided in Minnesota 80.11 Statutes, section 120.17: 80.12 $10,000 ..... 1998 80.13 This appropriation is available until June 30, 1999. 80.14 Subd. 12. [OPTIONS PLUS PILOT GRANTS.] For grants to 80.15 school districts for options plus pilot programs: 80.16 $150,000 ..... 1998 80.17 Each grant shall not exceed $50,000. 80.18 This appropriation is available until June 30, 1999. 80.19 Subd. 13. [MAGNET SCHOOL GRANTS.] For magnet school and 80.20 program grants: 80.21 $2,000,000 ..... 1998 80.22 $2,000,000 ..... 1999 80.23 These amounts must be used for planning and developing 80.24 magnet schools and magnet programs. 80.25 Subd. 14. [INTEGRATION PROGRAMS.] For grants according to: 80.26 minority fellowship grants according to Laws 1994, chapter 647, 80.27 article 8, section 29; minority teacher incentives according to 80.28 Minnesota Statutes, section 124.278; teachers of color grants 80.29 according to Minnesota Statutes, section 125.623; and cultural 80.30 exchange grants according to Minnesota Statutes, section 126.43: 80.31 $1,000,000 ..... 1998 80.32 $1,000,000 ..... 1999 80.33 Any balance in the first year does not cancel but is 80.34 available in the second year. 80.35 In awarding teacher of color grants, priority must be given 80.36 to districts that have students who are currently in the process 81.1 of completing their academic program. 81.2 Subd. 15. [SPECIAL EDUCATION AID.] For special education 81.3 aid according to Minnesota Statutes, section 124.32: 81.4 $282,505,000 ..... 1998 81.5 $382,519,000 ..... 1999 81.6 The 1998 appropriation includes $24,346,000 for 1997 and 81.7 $258,159,000 for 1998. 81.8 The 1999 appropriation includes $28,684,000 for 1998 and 81.9 $353,835,000 for 1999. 81.10 Subd. 16. [AID FOR CHILDREN WITH A DISABILITY.] For aid 81.11 according to Minnesota Statutes, section 124.32, subdivision 6, 81.12 for children with a disability placed in residential facilities 81.13 within the district boundaries for whom no district of residence 81.14 can be determined: 81.15 $586,000 ..... 1998 81.16 $644,000 ..... 1999 81.17 If the appropriation for either year is insufficient, the 81.18 appropriation for the other year is available. Any balance in 81.19 the first year does not cancel but is available in the second 81.20 year. 81.21 Subd. 17. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 81.22 teacher travel for home-based services according to Minnesota 81.23 Statutes, section 124.32, subdivision 2b: 81.24 $107,000 ..... 1998 81.25 $111,000 ..... 1999 81.26 The 1998 appropriation includes $8,000 for 1997 and $99,000 81.27 for 1998. 81.28 The 1999 appropriation includes $10,000 for 1998 and 81.29 $101,000 for 1999. 81.30 Subd. 18. [SPECIAL EDUCATION EXCESS COST AID.] For excess 81.31 cost aid: 81.32 $26,812,000 ..... 1998 81.33 $46,439,000 ..... 1999 81.34 The 1998 appropriation includes $1,242,000 for 1997 and 81.35 $25,570,000 for 1998. 81.36 The 1999 appropriation includes $2,841,000 for 1998 and 82.1 $43,598,000 for 1999. 82.2 Subd. 19. [TARGETED NEEDS AID.] For targeted needs aid: 82.3 $46,809,000 ..... 1998 82.4 $2,852,000 ..... 1999 82.5 (a) Of the 1998 amount, $930,000 is for 1997 limited 82.6 English proficiency aid and $13,278,000 is for 1998 limited 82.7 English proficiency aid. Of the 1998 amount, $1,364,000 is for 82.8 1997 assurance of mastery aid and $12,393,000 is for 1998 82.9 assurance of mastery aid. Of the 1998 amount, $18,844,000 is 82.10 for 1998 integration aid. 82.11 (b) Of the 1999 amount, $1,475,000 is for 1998 limited 82.12 English proficiency aid and $0 is for 1999 limited English 82.13 proficiency aid. Of the 1999 amount, $1,377,000 is for 1998 82.14 assurance of mastery aid and $0 is for 1999 assurance of mastery 82.15 aid. 82.16 (c) As a condition of receiving a grant, each district must 82.17 continue to report its costs according to the uniform financial 82.18 accounting and reporting system. As a further condition of 82.19 receiving a grant, each district must submit a report to the 82.20 chairs of the education committees of the legislature about the 82.21 actual expenditures it made for integration using the grant 82.22 money including achievement results. These grants may be used 82.23 to transport students attending a nonresident district under 82.24 Minnesota Statutes, section 120.062, to the border of the 82.25 resident district. A district may allocate a part of the grant 82.26 to the transportation fund for this purpose. 82.27 Subd. 20. [SCHOOL-TO-WORK PROGRAMS; STUDENTS WITH 82.28 DISABILITIES.] For aid for school-to-work programs for pupils 82.29 with disabilities according to Minnesota Statutes, section 82.30 124.574: 82.31 $7,044,000 ..... 1998 82.32 $7,985,000 ..... 1999 82.33 The 1998 appropriation includes $618,000 for 1997 and 82.34 $6,426,000 for 1998. 82.35 The 1999 appropriation includes $713,000 for 1998 and 82.36 $7,272,000 for 1999. 83.1 Subd. 21. [SPECIAL PROGRAMS EQUALIZATION AID.] For special 83.2 education levy equalization aid according to Minnesota Statutes, 83.3 section 124.321: 83.4 $11,195,000 ..... 1998 83.5 $ 5,780,000 ..... 1999 83.6 The 1998 appropriation includes $1,783,000 for 1997 and 83.7 $9,412,000 for 1998. 83.8 The 1999 appropriation includes $1,045,000 for 1998 and 83.9 $4,735,000 for 1999. 83.10 Subd. 22. [INTEGRATION AID.] For integration aid: 83.11 $26,124,000 ..... 1999 83.12 This appropriation is based on an entitlement of 83.13 $29,026,000 83.14 Subd. 23. [CENTRAL MINNESOTA AREA LEARNING CENTER.] For a 83.15 grant to two or more of the following school districts, 83.16 independent school district Nos. 47, Sauk Rapids; 51, Foley; 83.17 738, Holdingford; 739, Kimball; 742, St. Cloud; 748, Sartell; 83.18 and 750, Cold Spring, that form a joint powers agreement under 83.19 Minnesota Statutes, section 471.59, to establish the central 83.20 Minnesota area learning center: 83.21 $130,000 ..... 1998 83.22 This appropriation is available until June 30, 1999. 83.23 Subd. 24. [LOW-INCOME CONCENTRATION GRANTS.] For 83.24 low-income concentration grants under Laws 1994, chapter 647, 83.25 article 8, section 43: 83.26 $1,838,000 ..... 1998 83.27 $1,838,000 ..... 1999 83.28 Each grant shall be for no more than $52,500. 83.29 Subd. 25. [NETT LAKE.] For grants to independent school 83.30 district No. 707, Nett Lake: 83.31 $79,000 ..... 1998 83.32 $60,000 ..... 1999 83.33 $19,000 in 1998 is for a grant to independent school 83.34 district No. 707, Nett Lake, to reimburse the district for 83.35 property and boiler insurance premiums paid in fiscal year 1996. 83.36 $30,000 in 1998 and $30,000 in 1999 are for grants to 84.1 independent school district No. 707, Nett Lake, to pay property 84.2 insurance and boiler insurance premiums, and insurance premiums 84.3 under Minnesota Statutes, section 466.06. 84.4 $30,000 in 1998 and $30,000 in 1999 are for grants to 84.5 independent school district No. 707, Nett Lake, for the payment 84.6 of obligations of the school district for unemployment 84.7 compensation. The appropriation must be paid to the appropriate 84.8 state agency for such purposes in the name of the school 84.9 district. 84.10 Subd. 26. [NETT LAKE MEDIA SPECIALIST.] For a grant to 84.11 independent school district No. 707, Nett Lake, for a media 84.12 specialist for preschool through grade 6: 84.13 $35,000 ..... 1998 84.14 Subd. 27. [FIRST GRADE PREPAREDNESS.] For grants for the 84.15 first grade preparedness program under Minnesota Statutes, 84.16 section 124.2613, and for school sites that have provided a 84.17 full-day kindergarten option for kindergarten students enrolled 84.18 in fiscal years 1996 and 1997: 84.19 $3,900,000 ..... 1998 84.20 $3,900,000 ..... 1999 84.21 To be a qualified site, licensed teachers must have taught 84.22 the optional full-day kindergarten classes. A district that 84.23 charged a fee for students participating in an optional full-day 84.24 program is eligible to receive the grant to provide full-day 84.25 kindergarten for all students as required by Minnesota Statutes, 84.26 section 124.2613, subdivision 4. Districts with eligible sites 84.27 must apply to the commissioner of children, families, and 84.28 learning for a grant. 84.29 This appropriation is in addition to appropriations for the 84.30 program under this act and Laws 1996, chapter 412, article 1, 84.31 section 34, subdivision 2, and must be used to expand the number 84.32 of sites providing first grade preparedness. The commissioner 84.33 shall make grants to eligible sites within the limits of the 84.34 appropriation. 84.35 Sec. 37. [REPEALER.] 84.36 Minnesota Statutes 1996, sections 124.3201, subdivisions 2a 85.1 and 2b; and 128B.10, are repealed. 85.2 Sec. 38. [EFFECTIVE DATE.] 85.3 (a) Sections 29 and 30 are effective for the 1997-1998 85.4 school year and thereafter. 85.5 (b) Sections 3 and 21 are effective for revenue for fiscal 85.6 year 1999. 85.7 (c) Section 4 is effective the day following final 85.8 enactment. 85.9 (d) Sections 5, 19, 23, and 37 are effective retroactively 85.10 to July 1, 1996. 85.11 ARTICLE 3 85.12 LIFEWORK DEVELOPMENT 85.13 Section 1. Minnesota Statutes 1996, section 121.11, is 85.14 amended by adding a subdivision to read: 85.15 Subd. 7e. [GRADUATION EDUCATION DEVELOPMENT TESTS 85.16 RULES.] The state board may amend rules to reflect changes in 85.17 the national minimum standard score for passing the Graduation 85.18 Education Development (GED) tests. 85.19 Sec. 2. [121.498] [MINNESOTA CAREER INFORMATION SYSTEM.] 85.20 (a) The department of children, families, and learning, 85.21 through the Minnesota career information system (MCIS), may 85.22 provide career information to, including, but not limited to, 85.23 school districts and other educational organizations, employment 85.24 and training services, human service agencies, libraries, and 85.25 families. The department shall collect fees necessary to 85.26 recover all expenditures related to the operation of the 85.27 Minnesota career information system. 85.28 (b) Grants and other legislative funds may be accepted and 85.29 used for the improvement or operation of the Minnesota career 85.30 information system. All receipts shall be deposited in a 85.31 special account in the special revenue fund that shall be 85.32 carried over at the end of each fiscal year. The money in the 85.33 account, along with any interest earned, is appropriated to the 85.34 commissioner of children, families, and learning for the 85.35 Minnesota career information system and must be for the sole use 85.36 and benefit of the system. The department shall recognize that 86.1 the Minnesota career information system operates under a 86.2 self-supporting directive, and accordingly, must provide 86.3 sufficient administrative latitude within the confines of law to 86.4 enable the system to operate effectively. 86.5 Sec. 3. Minnesota Statutes 1996, section 121.615, 86.6 subdivision 2, is amended to read: 86.7 Subd. 2. [CREATION OF FOUNDATION.] There is created the 86.8 Minnesota school-to-work student organization foundation. The 86.9 purpose of the foundation shall be to promote vocational student 86.10 organizations and applied leadership opportunities in Minnesota 86.11 public and nonpublic schools through public-private 86.12 partnerships. The foundation shall be a nonprofit 86.13 organization. The board of directors of the foundation and 86.14 activities of the foundation are under the direction of 86.15 thedepartment of children, families, and learningstate board 86.16 of education. 86.17 Sec. 4. Minnesota Statutes 1996, section 121.615, 86.18 subdivision 3, is amended to read: 86.19 Subd. 3. [BOARD OF DIRECTORS.] The board of directors of 86.20 the school-to-work student organization foundation shall consist 86.21 of: 86.22(1) chairs or designees from the board of directors of FFA86.23(formerly Future Farmers of America), Future Leaders of86.24America/Future Homemakers of America, post-secondary agriculture86.25students, home economics related occupations, Health Occupations86.26Student Association, Distributive Education Clubs of America,86.27Delta Upsilon Chi, Secondary Vocational Industrial Clubs of86.28America, Post-secondary Vocational Industrial Clubs of America,86.29Secondary Business Professionals of America, and Post-secondary86.30Business Professionals of America;86.31(2) four members from business and industry appointed by86.32the governor; and86.33(3) five students representing diverse vocational areas,86.34three of whom are appointed by the commissioner of the86.35department of children, families, and learning and two of whom86.36are appointed by the chancellor of the Minnesota state colleges87.1and universities with the advice of the executive councils of87.2each vocational education student organization.87.3 (1) seven members appointed by the board of directors of 87.4 the school-to-work student organizations and chosen so that each 87.5 represents one of the following career areas: agriculture, 87.6 family and consumer sciences, service occupations, health 87.7 occupations, marketing, business, and technical/industrial; 87.8 (2) seven members from business, industry, and labor 87.9 appointed by the governor to staggered terms and chosen so that 87.10 each represents one of the following career areas: agriculture, 87.11 family and consumer sciences, service occupations, health 87.12 occupations, marketing, business, and technical/industrial; 87.13 (3) five students or alumni of school-to-work student 87.14 organizations representing diverse career areas, three from 87.15 secondary student organizations, and two from post-secondary 87.16 student organizations. The students or alumni shall be 87.17 appointed by the criteria and process agreed upon by the 87.18 executive directors of the student-to-work organizations; and 87.19 (4) four members from education appointed by the governor 87.20 to staggered terms and chosen so that each represents one of the 87.21 following groups: school district level administrators, 87.22 secondary school administrators, middle school administrators, 87.23 and post-secondary administrators. 87.24 Executive directors of vocational education student 87.25 organizations are ex officio, nonvoting members of the board. 87.26 Sec. 5. Minnesota Statutes 1996, section 121.615, 87.27 subdivision 5, is amended to read: 87.28 Subd. 5. [POWERS AND DUTIES.] The foundation may: 87.29 (1) identify and plan common goals and priorities for the 87.30 various school-to-work student organizations in Minnesota; 87.31 (2) publish brochures or booklets relating to the purposes 87.32 of the foundation and collect reasonable fees for the 87.33 publications; 87.34 (3) seek and receive public and private money, grants, and 87.35 in-kind services and goods from nonstate sources for the 87.36 purposes of the foundation, without complying with section 7.09, 88.1 subdivision 1; 88.2 (4) contract with consultants on behalf of the 88.3 school-to-work student organizations;and88.4 (5) plan, implement, and expend money for awards and other 88.5 forms of recognition for school-to-work studentactivities88.6 programs; and 88.7 (6) identifying an appropriate name for the foundation. 88.8 Sec. 6. Minnesota Statutes 1996, section 121.615, 88.9 subdivision 6, is amended to read: 88.10 Subd. 6. [CONTRACTS.] The foundation boardof directors88.11 shall review and approvefoundation personnel and programming88.12contractseach contract of the board. Each contract of the 88.13 foundation board shall be subject to the same review and 88.14 approval procedures as a contract of the state board of 88.15 education. 88.16 Sec. 7. Minnesota Statutes 1996, section 121.615, 88.17 subdivision 7, is amended to read: 88.18 Subd. 7. [FOUNDATION STAFF.] Thecommissioner of the88.19department of children, families, and learningstate board of 88.20 education shall appoint the executive director of the foundation 88.21 from three candidates nominated and submitted by the foundation 88.22 board of directors and, as necessary, other staff who shall 88.23 perform duties and have responsibilities solely related to the 88.24 foundation. The employees appointed are not state employees 88.25 under chapter 43A, but are covered under section 3.736. The 88.26 employees may participate in the state health and state 88.27 insurance plans for employees in unclassified service. The 88.28 employees shall be supervised by the executive director. 88.29 The commissioner shall appoint from the office of lifework 88.30 development a liaison to the foundation board. 88.31 Sec. 8. Minnesota Statutes 1996, section 121.615, 88.32 subdivision 8, is amended to read: 88.33 Subd. 8. [PUBLIC FUNDING.] Thecommissioner of the88.34department of children, families, and learningstate shall 88.35 identify and secure appropriatesources of state and federal88.36 fundingfrom various state agencies, including, but not limited89.1to, Minnesota state colleges and universities,for theoperation89.2and development ofbasic staffing of the foundation and 89.3 individual student school-to-workstudentorganizations. 89.4 Sec. 9. Minnesota Statutes 1996, section 121.615, 89.5 subdivision 9, is amended to read: 89.6 Subd. 9. [PRIVATE FUNDING.] The foundation shall seek 89.7 private resources to supplement theallocated state and89.8federalavailable public money. Individuals, businesses, and 89.9 other organizations may contribute to the foundation in any 89.10 manner specified by the board of directors. All money received 89.11 shall be administered by the board of directors. 89.12 Sec. 10. Minnesota Statutes 1996, section 121.615, 89.13 subdivision 10, is amended to read: 89.14 Subd. 10. [REPORT.] The board of directors of the 89.15 foundation shall submit an annual reportand assessment to the89.16office of lifework development andon the progress of its 89.17 activities to the state board of education and to the board of 89.18 trustees of the Minnesota state colleges and universities. The 89.19 annual report shall contain a financial report for the preceding 89.20 year. The foundation shall submit a biennium report to the 89.21 legislature before February 15, in the odd-numbered year. 89.22 Sec. 11. [121.618] [LIFEWORK LEARNING.] 89.23 Subdivision 1. [FUNCTIONS.] Lifework learning sites must: 89.24 (1) provide teaching and learning opportunities that 89.25 demonstrate and model state-of-the-art practice in lifework 89.26 education; 89.27 (2) offer professional development opportunities that train 89.28 school personnel and other partners about state-of-the-art 89.29 practices in lifework education; 89.30 (3) perform research and development by conducting needs 89.31 assessment, and developing, field-testing, and evaluating 89.32 current practice and advance state-of-the-art practice in 89.33 lifework education; and 89.34 (4) serve as a clearinghouse for selecting and 89.35 disseminating materials and information about state-of-the-art 89.36 practice in lifework education throughout the state. 90.1 Subd. 2. [CRITERIA.] The department must develop a process 90.2 for selecting learning sites, one of which must be located in 90.3 the seven county metropolitan area and one of which must be 90.4 located in greater Minnesota. The commissioner shall select 90.5 learning center sites that: 90.6 (1) are committed to the site's purpose and focus; 90.7 (2) are able and willing to work with partners in 90.8 supporting and housing a lifework learning site; 90.9 (3) are ready and competent to realize the site's duties; 90.10 and 90.11 (4) will colocate with other educational, commercial, or 90.12 community enterprises. 90.13 Subd. 3. [DUTIES.] The lifework learning site must: 90.14 (1) develop and model state-of-the-art practice of lifework 90.15 learning; 90.16 (2) train school and nonschool staff to implement 90.17 state-of-the-art practice of lifework learning; 90.18 (3) continuously improve state-of-the-art practice of 90.19 lifework education at lifework learning sites and throughout 90.20 Minnesota; and 90.21 (4) provide information about the state-of-the-art practice 90.22 in lifework learning and how to implement it. 90.23 Subd. 4. [FUNDING.] A lifework learning site is eligible 90.24 for funding under the laboratory school grant program. 90.25 Sec. 12. Minnesota Statutes 1996, section 121.703, 90.26 subdivision 3, is amended to read: 90.27 Subd. 3. [DUTIES.] (a) The commission shall: 90.28 (1) develop, with the assistance of the governor, the 90.29 commissioner of children, families, and learning, and affected 90.30 state agencies, a comprehensive state plan to provide services 90.31 under sections 121.701 to 121.710 and federal law; 90.32 (2) actively pursue public and private funding sources for 90.33 services, including funding available under federal law; 90.34 (3) coordinate volunteer service-learning programs within 90.35 the state; 90.36 (4) develop, in cooperation with the workforce development 91.1 council and the commissioner of children, families, and 91.2 learning, volunteer service-learning programs, including 91.3 curriculum, materials, and methods of instruction; 91.4 (5) work collaboratively with the workforce development 91.5 council, the commissioner of children, families, and learning, 91.6 schools, public and private agencies, for-profit and nonprofit 91.7 employers, and labor unions to identify mentoring and 91.8 service-learning opportunities, solicit and recruit participants 91.9 for these programs, and disseminate information on the programs; 91.10 (6) administer the youth works grant program under sections 91.11 121.704 to 121.709, with assistance from the commissioner of 91.12 children, families, and learning and the executive director of 91.13 the higher education services office, including soliciting and 91.14 approving grant applications from eligible organizations, and 91.15 administering individual postservice benefits; 91.16 (7) establish an evaluation plan for programs developed and 91.17 services provided under sections 121.701 to 121.710; 91.18 (8) report to the governor, commissioner of children, 91.19 families, and learning, and legislature; 91.20 (9) provide oversight and support for school, campus, and 91.21 community-based service programs; and 91.22 (10) administer the federal AmeriCorps program. 91.23 (b) Nothing in sections 121.701 to 121.710 precludes an 91.24 organization from independently seeking public or private 91.25 funding to accomplish purposes similar to those described in 91.26 paragraph (a). 91.27 (c) The commissioner of children, families, and learning 91.28 shall consult with commission members before the commissioner 91.29 selects the executive director for the commission, who shall 91.30 serve in the unclassified service. 91.31 Sec. 13. Minnesota Statutes 1996, section 124.193, is 91.32 amended to read: 91.33 124.193 [PROHIBITED AID AND LEVIES.] 91.34 Subdivision 1. [GENERAL PROHIBITION.] Unless specifically 91.35 permitted in the provision authorizing an aid or a levy, 91.36 cooperative units of government defined in section 123.35, 92.1 subdivision 19b, paragraph (d), are prohibited from making a 92.2 property tax levy or qualifying for or receiving any form of 92.3 state aidexcept that a cooperative unit may apply for and92.4receive a grant on behalf of its membersas provided in 92.5 subdivisions 2 and 3. 92.6 Subd. 2. [GRANTS.] A cooperative unit may apply for and 92.7 receive a grant on behalf of its members. 92.8 Subd. 3. [ALLOCATION FROM MEMBERS.] By July 1 of each 92.9 year, a school district may, by board resolution, allocate to 92.10 cooperative units of which it is a member an amount not to 92.11 exceed the lesser of (a) the district's general education aid 92.12 for the fiscal year beginning July 1, according to sections 92.13 124A.036, subdivision 5, and 124A.23, subdivision 4, or (b) an 92.14 amount equal to $67 times the fund balance pupil units for the 92.15 fiscal year beginning July 1. By July 15 of each year, the 92.16 school district must report to the commissioner the amount 92.17 allocated. The amount allocated to cooperative units shall be 92.18 paid to cooperative units according to section 124.195, 92.19 subdivision 15. Amounts allocated to cooperative units under 92.20 this subdivision shall be recognized and reported as revenues 92.21 and expenditures on the school district's books of account under 92.22 sections 121.904 and 121.906. 92.23 Sec. 14. Minnesota Statutes 1996, section 124.195, is 92.24 amended by adding a subdivision to read: 92.25 Subd. 15. [PAYMENTS TO COOPERATIVES.] Notwithstanding 92.26 subdivision 3, 90 percent of the amounts allocated to 92.27 cooperative units under section 124.193, subdivision 3, shall be 92.28 paid in equal installments on August 30, December 30, and March 92.29 30, with a ten percent final adjustment payment on October 30 of 92.30 the next fiscal year. 92.31 Sec. 15. Minnesota Statutes 1996, section 124.573, 92.32 subdivision 2f, is amended to read: 92.33 Subd. 2f. [AID GUARANTEE.] Notwithstanding subdivision 2b, 92.34 the secondary vocational education aid for a school district is 92.35 not less than the lesser of: 92.36 (a) 95 percent of the secondary vocational education aid 93.1 the district received for the previous fiscal year;or93.2 (b) 40 percent of the approved expenditures for secondary 93.3 vocational programs included in subdivision 2b, paragraph (b); 93.4 or 93.5 (c) notwithstanding paragraphs (a) and (b), a school 93.6 district's aid shall not be less than 25 percent of the lesser 93.7 of (1) $200,000, or (2) the approved expenditure included in 93.8 subdivision 2b, paragraph (b). 93.9 Sec. 16. Minnesota Statutes 1996, section 124.574, 93.10 subdivision 1, is amended to read: 93.11 Subdivision 1. The purpose of this section is to provide a 93.12 method to fundprograms for secondary vocational education93.13 school-to-work programs for children with a disability. As used 93.14 in this section, the term "children with a disability" shall 93.15 have the meaning ascribed to it in section 120.03. 93.16 Sec. 17. Minnesota Statutes 1996, section 124.574, 93.17 subdivision 5, is amended to read: 93.18 Subd. 5. The aid provided pursuant to this section shall 93.19 be paid only for services rendered as designated in subdivision 93.20 2 or for the costs designated in subdivision 3 which are 93.21 incurred insecondary vocational education programs93.22 school-to-work programs for children with a disability which are 93.23 approved by the commissioner of children, families, and learning 93.24 and operated in accordance with rules promulgated by the state 93.25 board. These rules shall be subject to the restrictions 93.26 provided in section 124.573, subdivision 3. The procedure for 93.27 application for approval of these programs shall be as provided 93.28 in section 124.32, subdivisions 7 and 10, and the application 93.29 review process shall be conducted by thevocational education93.30section of the stateoffice of lifework development in the 93.31 department. 93.32 Sec. 18. Minnesota Statutes 1996, section 124.574, 93.33 subdivision 6, is amended to read: 93.34 Subd. 6. All aid pursuant to this section shall be paid to 93.35 the district or cooperative center providing the services. All 93.36 aid received by a district or center from any source for 94.1secondary vocational educationschool-to-work programs for 94.2 children with a disability shall be utilized solely for that 94.3 purpose. 94.4 Sec. 19. Minnesota Statutes 1996, section 124.574, 94.5 subdivision 9, is amended to read: 94.6 Subd. 9. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 94.7 INTERMEDIATE DISTRICTS.] For purposes of this section and 94.8 section 124.321, a cooperative center or an intermediate 94.9 district shall allocate its approved expenditures forsecondary94.10vocational programsschool-to-work programs for children with a 94.11 disability among participating school districts. Aid for 94.12secondary vocational programsschool-to-work programs for 94.13 children with a disability for services provided by a 94.14 cooperative or intermediate district shall be paid to the 94.15 participating school districts. 94.16 Sec. 20. Minnesota Statutes 1996, section 124C.46, 94.17 subdivision 1, is amended to read: 94.18 Subdivision 1. [PROGRAM FOCUS.] The programs and services 94.19 of a center must focus on academic and learning skills, applied 94.20 learning opportunities, trade and vocational skills, work-based 94.21 learning opportunities, work experience, youth service to the 94.22 community, and transition services. The center shall coordinate 94.23 the use of other available educational services, social 94.24 services, health services, and post-secondary institutions in 94.25 the community and services area. 94.26 Sec. 21. [126.685] [LIFEWORK DEVELOPMENT PLAN.] 94.27 A school district may require students in grades seven 94.28 through 12 to develop and maintain a record of all of the 94.29 students' lifework development activities. This record would 94.30 include, but is not limited to, the students' goals, skills, 94.31 abilities, and interests, as well as information on formal 94.32 service learning, out-of-school learning experiences, and 94.33 career-related experiences, such as job shadowing, career 94.34 mentoring, internships, apprenticeships, entrepreneurship, and 94.35 other work-based learning activities. This ongoing record would 94.36 assist the students in choosing their school-based courses and 95.1 assist them in the research and exploration of career options. 95.2 Each school year, the record would be reviewed by the student, 95.3 the student's parent or guardian, and qualified school personnel 95.4 to ensure that the record is updated and reflects the student's 95.5 changing life goals and aspirations. The record would serve as 95.6 the basis of a lifework plan that would be developed before 95.7 graduation. The plan would outline the skills the students need 95.8 to develop in order to attain their career aspirations. The 95.9 plan would also outline future education and training options 95.10 necessary to achieve their lifework goals. 95.11 Sec. 22. Minnesota Statutes 1996, section 136A.233, is 95.12 amended by adding a subdivision to read: 95.13 Subd. 4. [COOPERATION WITH LOCAL SCHOOLS.] Each campus 95.14 using the state work study program is encouraged to cooperate 95.15 with its local public elementary and secondary schools to place 95.16 college work study students in activities in the schools, such 95.17 as tutoring, that assist students in kindergarten through grade 95.18 12 in meeting graduation standards. College students shall work 95.19 under direct supervision; therefore, school hiring authorities 95.20 are not required to request criminal background checks on these 95.21 students under section 120.1045. 95.22 Sec. 23. [PILOT PROGRAM.] 95.23 A high school student entrepreneurship program is 95.24 established within independent school district No. 175, 95.25 Westbrook, to increase entrepreneurship education in secondary 95.26 schools. Independent school district No. 175, Westbrook, shall 95.27 operate a student-run business within Westbrook Walnut Grove 95.28 high school, during the period of time a grant is available for 95.29 that purpose. 95.30 Sec. 24. [DAWSON-BOYD ADULT FARM MANAGEMENT LEVY.] 95.31 In addition to other levies, independent school district 95.32 No. 378, Dawson-Boyd, may levy an amount up to $132,000 for the 95.33 unreimbursed costs of an adult farm management program. This 95.34 amount may be levied over a period of three years. 95.35 Sec. 25. [SMALL SCHOOL VIABILITY PROJECT.] 95.36 Subdivision 1. [PILOT PROJECT.] A small school viability 96.1 pilot project is created. The purpose of the small school 96.2 viability project is to serve as a small school model for the 96.3 state of Minnesota demonstrating the capability of a small 96.4 school district to provide a curriculum and teaching methodology 96.5 allowing students to reach high levels of performance on the 96.6 state graduation standards. 96.7 Subd. 2. [ACTIVITIES.] The school board of independent 96.8 school district No. 330, Heron Lake-Okabena, must develop its 96.9 small school viability project including its academic framework, 96.10 goals, and delivery system in consultation with community 96.11 members, teachers, and parents. 96.12 Subd. 3. [REPORT.] The school district shall conduct an 96.13 ongoing study of the pilot program. The study shall evaluate 96.14 program outcomes and student performance. The study shall 96.15 compare outcomes and student performance to other similarly 96.16 situated school districts and measure changes in outcomes and 96.17 student performance within the school over time. The school 96.18 district shall annually report its results to the legislature by 96.19 February 15 of each year. A final report must be issued by 96.20 February 15, 2002. 96.21 Sec. 26. [APPROPRIATIONS.] 96.22 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 96.23 LEARNING.] The sums indicated in this section are appropriated 96.24 from the general fund to the department of children, families, 96.25 and learning for the fiscal years designated. 96.26 Subd. 2. [SECONDARY VOCATIONAL EDUCATION AID.] For 96.27 secondary vocational education aid according to Minnesota 96.28 Statutes, section 124.573: 96.29 $13,217,000 ..... 1998 96.30 $13,355,000 ..... 1999 96.31 The 1998 appropriation includes $1,180,000 for 1997 and 96.32 $12,037,000 for 1998. 96.33 The 1999 appropriation includes $1,337,000 for 1998 and 96.34 $12,018,000 for 1999. 96.35 Subd. 3. [YOUTHWORKS PROGRAM.] For funding youthworks 96.36 programs according to Minnesota Statutes, sections 121.701 to 97.1 121.710: 97.2 $1,900,000 ..... 1998 97.3 $1,900,000 ..... 1999 97.4 The commissioner may allocate up to $50,000 of the 97.5 appropriation for the cost of administering the program. 97.6 A grantee organization may provide health and child care 97.7 coverage to the dependents of each participant enrolled in a 97.8 full-time youth works program to the extent such coverage is not 97.9 otherwise available. 97.10 Any balance in the first year does not cancel but is 97.11 available in the second year. 97.12 Subd. 4. [ENTREPRENEURSHIP PILOT PROGRAM.] For the high 97.13 school student entrepreneurship program in independent school 97.14 district No. 175, Westbrook: 97.15 $75,000 ..... 1998 97.16 This appropriation may be used for start-up expenses, 97.17 including, but not limited to, salaries, travel, seminars, 97.18 equipment purchases, contractual expenses, and other expenses 97.19 related to the start up of the student-run business. 97.20 This appropriation is available until June 30, 1999. 97.21 Subd. 5. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 97.22 GRANTS.] For education and employment transitions program: 97.23 $4,000,000 ..... 1998 97.24 $4,000,000 ..... 1999 97.25 (a) $500,000 each year is for development of MnCEPs, an 97.26 Internet-based education and employment information system. 97.27 These are one-time funds. 97.28 (b) $1,250,000 each year is for a rebate program for 97.29 employers who offer internships and other work experiences to 97.30 learners. An employer rebate shall be awarded to an employer 97.31 with 250 or fewer employees. An employer shall receive a rebate 97.32 of $500 for each paid youth internship and each paid education 97.33 internship, and $3,000 for each paid youth apprenticeship. The 97.34 commissioner shall determine the application and payment process 97.35 and the amount of the rebate. 97.36 (c) $400,000 each year is for youth apprenticeship program 98.1 grants. 98.2 (d) $100,000 each year is for youth entrepreneurship grants 98.3 under Minnesota Statutes, section 121.72. 98.4 (e) $100,000 each year is for youth employer grants under 98.5 Laws 1995, First Special Session chapter 3, article 4, section 98.6 28. 98.7 (f) $150,000 each year is for parent and community 98.8 awareness training. 98.9 (g) $1,500,000 each year is for lifework development and 98.10 implementation activities and state-level activities, including 98.11 the governor's workforce development council. 98.12 Any balance in the first year does not cancel but is 98.13 available in the second year. 98.14 Subd. 6. [MINNESOTA SCHOOL-TO-WORK STUDENT ORGANIZATION 98.15 FOUNDATION.] For the Minnesota school-to-work student 98.16 organization foundation under Minnesota Statutes, section 98.17 121.615: 98.18 $500,000 ..... 1998 98.19 $500,000 ..... 1999 98.20 Subd. 7. [SOUTHWEST STAR CONCEPT SCHOOL.] For a grant to 98.21 independent school district No. 330, Heron Lake-Okabena, to 98.22 establish the Southwest Star Concept School: 98.23 $193,000 ..... 1998 98.24 Of this amount, up to $150,000 is for equipment needs; up 98.25 to $8,100 is for activities beyond the classroom walls; and up 98.26 to $17,000 is for professional planning assistance. Any 98.27 remaining funds may be used for monitoring, evaluating, and 98.28 reporting activities related to the case study prepared in 98.29 section 25. 98.30 This appropriation is available until June 30, 1999. 98.31 Subd. 8. [WORKSTUDY STUDENT COMPENSATION.] For enabling 98.32 school districts to pay the employer's share of work study 98.33 students compensation under Minnesota Statutes, section 98.34 136A.233, subdivision 3: 98.35 $50,000 ..... 1998 98.36 $50,000 ..... 1999 99.1 Money shall be available to districts upon request until 99.2 the appropriation is exhausted. The commissioner may establish 99.3 an application procedure for allocating the money to districts. 99.4 Subd. 9. [JOB SHADOWING AT CAMP RIPLEY.] For a grant to 99.5 the Mid-State Education District No. 6979, for a job shadowing 99.6 program and internships: 99.7 $150,000 ..... 1998 99.8 $150,000 ..... 1999 99.9 The programs shall be conducted in conjunction with the 99.10 department of military affairs' programs based at Camp Ripley. 99.11 The goals of the program are to: 99.12 (1) provide "real-world" occupational experiences; 99.13 (2) demonstrate integration of academic and vocational 99.14 education in a worksite setting; 99.15 (3) provide a more complete continuum of integrated 99.16 experiences in order to meet Minnesota's graduation standards; 99.17 (4) further develop the school-to-work career partnership; 99.18 and 99.19 (5) provide mentoring services from both the school-based 99.20 and worksite perspectives. 99.21 Sec. 27. [REPEALER.] 99.22 Laws 1993, chapter 146, article 5, section 20, is repealed. 99.23 Minnesota Statutes 1996, section 126.113, is repealed. 99.24 Sec. 28. [EFFECTIVE DATES.] 99.25 (a) Section 1 is effective the day following final 99.26 enactment. 99.27 (b) Sections 13 and 14 are effective July 1, 1997, for 99.28 revenue for fiscal years 1998 and later. 99.29 (c) Section 15 is effective for revenue for fiscal year 99.30 1998. 99.31 ARTICLE 4 99.32 EDUCATION ORGANIZATION, COOPERATION, AND FACILITIES 99.33 Section 1. Minnesota Statutes 1996, section 120.0621, 99.34 subdivision 5a, is amended to read: 99.35 Subd. 5a. [TUITION PAYMENTS.] In each odd-numbered year, 99.36 before March 1, thestate board of educationcommissioner shall 100.1 agree to rates of tuition for Minnesota elementary and secondary 100.2 pupils attending in other states for the next two fiscal 100.3 years when the other state agrees to negotiate tuition rates. 100.4 Theboardcommissioner shall negotiate equal, reciprocal rates 100.5 with the designated authority in each state for pupils who 100.6 reside in an adjoining state and enroll in a Minnesota school 100.7 district. The rates must be at least equal to the tuition 100.8 specified in section 120.08, subdivision 1. If the other state 100.9 does not agree to negotiate a general tuition rate, a Minnesota 100.10 school district shall negotiate a tuition rate with the school 100.11 district in the other state that sends a pupil to or receives a 100.12 pupil from the Minnesota school district. The tuition rate for 100.13 a pupil with a disability must be equal to the actual cost of 100.14 instruction and services provided. The resident district of a 100.15 Minnesota pupil attending in another state under this section 100.16 must pay the amount of tuition agreed upon in this section to 100.17 the district of attendance, prorated on the basis of the 100.18 proportion of the school year attended. 100.19 Sec. 2. Minnesota Statutes 1996, section 120.0621, 100.20 subdivision 5b, is amended to read: 100.21 Subd. 5b. [TRANSPORTATION OF STUDENTS.] (a) The agreement 100.22 under subdivision 5a with each state must specify that the 100.23 attending district in each state transport a pupil from the 100.24 district boundary to the school of attendance. 100.25 (b) Notwithstanding paragraph (a), the districts of 100.26 residence and attendance may agree that either district may 100.27 provide transportation from a pupil's home or agreed upon 100.28 location to school.Transportation aid for Minnesota students100.29eligible for aid shall be paid only for transportation within100.30the resident district.100.31 Sec. 3. Minnesota Statutes 1996, section 120.0621, 100.32 subdivision 6, is amended to read: 100.33 Subd. 6. [EFFECTIVE IF RECIPROCAL.] This section is 100.34 effective with respect to South Dakota upon enactment of 100.35 provisions by South Dakota that the commissioner determines are 100.36 essentially similar to the provisions for Minnesota pupils in 101.1 this section. After July 1, 1993, this section is effective 101.2 with respect to any other bordering state upon enactment of 101.3 provisions by the bordering state that the commissioner 101.4 determines are essentially similar to the provisions for 101.5 Minnesota pupils in this section. 101.6 Sec. 4. Minnesota Statutes 1996, section 120.0621, is 101.7 amended by adding a subdivision to read: 101.8 Subd. 7. [APPEAL TO THE COMMISSIONER.] If a Minnesota 101.9 school district cannot agree with an adjoining state on a 101.10 tuition rate for a Minnesota student attending school in that 101.11 state and that state has met the requirements in subdivision 6, 101.12 then the student's parent or guardian may request that the 101.13 commissioner agree on a tuition rate for the student. The 101.14 Minnesota school district must pay the amount of tuition the 101.15 commissioner agrees upon. 101.16 Sec. 5. Minnesota Statutes 1996, section 121.15, is 101.17 amended by adding a subdivision to read: 101.18 Subd. 1a. [INDOOR AIR QUALITY RESOURCES; COMMISSIONER'S 101.19 ROLE.] As part of the consultation under subdivision 1, the 101.20 commissioner shall provide each school district with information 101.21 concerning indoor air quality. 101.22 Sec. 6. Minnesota Statutes 1996, section 121.15, is 101.23 amended by adding a subdivision to read: 101.24 Subd. 7a. [INDOOR AIR QUALITY.] A school board seeking a 101.25 review and comment under this section must submit information 101.26 demonstrating to the commissioner's satisfaction that: 101.27 (1) indoor air quality issues have been considered; and 101.28 (2) the architects and engineers designing the facility 101.29 will have professional liability insurance. 101.30 Sec. 7. [121.1501] [SCHOOL FACILITY COMMISSIONING.] 101.31 Subdivision 1. [APPLICATION.] This section applies to the 101.32 installation or retrofitting of heating, ventilation, and air 101.33 conditioning systems for which review and comment of the project 101.34 under section 121.15 has been requested after July 1, 1997. 101.35 Subd. 2. [SYSTEM INSPECTOR.] For purposes of this section, 101.36 system inspector means: 102.1 (1) a Minnesota-licensed engineer; or 102.2 (2) properly qualified testing and balancing agency or 102.3 individual. 102.4 Subd. 3. [CERTIFICATION.] Prior to occupying or 102.5 reoccupying a school facility affected by this section, a school 102.6 board or its designee shall submit a document prepared by a 102.7 system inspector to the building official or to the 102.8 commissioner, verifying that the facility's heating, 102.9 ventilation, and air conditioning system has been installed and 102.10 operates according to design specifications. 102.11 Subd. 4. [OCCUPANCY.] If the document submitted by the 102.12 school board to the building official or the commissioner does 102.13 not demonstrate to that official's satisfaction that the 102.14 heating, ventilation, and air conditioning system has been 102.15 installed correctly or that the system is not operating at a 102.16 level to meet design specifications, the official or 102.17 commissioner may allow up to one year of occupancy while the 102.18 heating, ventilation, and air conditioning system is improved to 102.19 a level that is considered satisfactory by the system inspector. 102.20 Sec. 8. Minnesota Statutes 1996, section 121.155, is 102.21 amended by adding a subdivision to read: 102.22 Subd. 3. [EXEMPTION.] Programs operated in facilities 102.23 constructed under this section are exempt from the limitations 102.24 under section 123.35, subdivision 19a. 102.25 Sec. 9. Minnesota Statutes 1996, section 124.2727, 102.26 subdivision 6a, is amended to read: 102.27 Subd. 6a. [FISCAL YEAR 1998 DISTRICT COOPERATION REVENUE.] 102.28 A district's cooperation revenue for fiscal year 1998 is equal 102.29 to the greater of $67 times the actual pupil units or $25,000. 102.30 Sec. 10. Minnesota Statutes 1996, section 124.2727, 102.31 subdivision 6c, is amended to read: 102.32 Subd. 6c. [FISCAL YEAR 1998 DISTRICT COOPERATION AID.] A 102.33 district's cooperation aid for fiscal year 1998 is the 102.34 difference between its district cooperation revenue and its 102.35 district cooperation levy. If a district does not levy the 102.36 entire amount permitted, aid must be reduced in proportion to 103.1 the actual amount levied. 103.2 Sec. 11. Minnesota Statutes 1996, section 124.2727, 103.3 subdivision 6d, is amended to read: 103.4 Subd. 6d. [REVENUE USES.](a) A district must place its103.5district cooperation revenue in a reserved account and may only103.6use the revenue to purchase goods and services from entities103.7formed for cooperative purposes or to otherwise provide103.8educational services in a cooperative manner.103.9(b)A district that was a member of an intermediate school 103.10 district organized pursuant to chapter 136D on July 1, 1994, 103.11 must placeits district cooperationrevenue in a reserved 103.12 account and must allocate a portion of the reserved revenue for 103.13 instructional services from entities formed for cooperative 103.14 services for special education programs and secondary vocational 103.15 programs. The allocated amount is equal to the levy made 103.16 according to section 124.2727, subdivision 6, for taxes payable 103.17 in 1994 divided by the actual pupil units in the intermediate 103.18 school district for fiscal year 1995 times the number of actual 103.19 pupil units in the school district in 1995. The district must 103.20 use 5/11 of the revenue for special education and 6/11 of the 103.21 revenue for secondary vocational education. The district must 103.22 demonstrate that the revenue is being used to provide the full 103.23 range of special education and secondary vocational programs and 103.24 services available to each child served by the intermediate. 103.25 The secondary vocational programs and service must meet the 103.26 requirements established in an articulation agreement developed 103.27 between the state board of education and the board of trustees 103.28 of the Minnesota state colleges and universities. 103.29(c)A district that was not a member of an intermediate 103.30 district organized under chapter 136D on July 1, 1994, must 103.31 spend at least $9 per pupil unit of its district cooperation 103.32 revenue on secondary vocational programs. 103.33 Sec. 12. Minnesota Statutes 1996, section 124.2445, is 103.34 amended to read: 103.35 124.2445 [PURCHASE OF CERTAIN EQUIPMENT.] 103.36 The board of a school district may issue general obligation 104.1 certificates of indebtedness or capital notes subject to the 104.2 school district debt limits to purchase vehicles, computers, 104.3 telephone systems, cable equipment, photocopy and office 104.4 equipment, technological equipment for instruction, and other 104.5 capital equipment having an expected useful life at least as 104.6 long as the terms of the certificates or notes. The 104.7 certificates or notes must be payable in not more than five 104.8 years and must be issued on the terms and in the manner 104.9 determined by the board. The certificates or notes may be 104.10 issued by resolution and without the requirement for an 104.11 election. The certificates or notes are general obligation 104.12 bonds for purposes of section 124.755. A tax levy must be made 104.13 for the payment of the principal and interest on the 104.14 certificates or notes, in accordance with section 475.61, as in 104.15 the case of bonds. The sum of the tax levies under this section 104.16 and section 124.2455 for each year must not exceed the amount of 104.17 the district's total operating capital revenue for the year the 104.18 initial debt service levies are certified. The district's 104.19 general education levy for each year must be reduced by the sum 104.20 of (1) the amount of the tax levies for debt service certified 104.21 for each year for payment of the principal and interest on the 104.22 certificates or notes as required by section 475.61., and (2) 104.23 any excess amount in the debt redemption fund used to retire 104.24 certificates or notes issued after April 1, 1997. A district 104.25 using an excess amount in the debt redemption fund to retire the 104.26 certificates or notes shall report the amount used for this 104.27 purpose to the commissioner by July 15 of the following fiscal 104.28 year. A district having an outstanding capital loan under 104.29 section 124.431 or an outstanding debt service loan under 104.30 section 124.42 must not use an excess amount in the debt 104.31 redemption fund to retire the certificates or notes. 104.32 Sec. 13. Minnesota Statutes 1996, section 124.2455, is 104.33 amended to read: 104.34 124.2455 [BONDS FOR CERTAIN CAPITAL FACILITIES.] 104.35 (a) In addition to other bonding authority, with approval 104.36 of the commissioner, a school district may issue general 105.1 obligation bonds for certain capital projects under this 105.2 section. The bonds must be used only to make capital 105.3 improvements including: 105.4 (1) under section 124A.22, subdivision 11, total operating 105.5 capital revenue uses specified in clauses (4), (6), (7), (8), 105.6 (9), and (10); 105.7 (2) the cost of energy modifications; 105.8 (3) improving handicap accessibility to school buildings; 105.9 and 105.10 (4) bringing school buildings into compliance with life and 105.11 safety codes and fire codes. 105.12 (b) Before a district issues bonds under this subdivision, 105.13 it must publish notice of the intended projects, the amount of 105.14 the bond issue, and the total amount of district indebtedness. 105.15 (c) A bond issue tentatively authorized by the board under 105.16 this subdivision becomes finally authorized unless a petition 105.17 signed by more than 15 percent of the registered voters of the 105.18 school district is filed with the school board within 30 days of 105.19 the board's adoption of a resolution stating the board's 105.20 intention to issue bonds. The percentage is to be determined 105.21 with reference to the number of registered voters in the school 105.22 district on the last day before the petition is filed with the 105.23 school board. The petition must call for a referendum on the 105.24 question of whether to issue the bonds for the projects under 105.25 this section. The approval of 50 percent plus one of those 105.26 voting on the question is required to pass a referendum 105.27 authorized by this section. 105.28 (d) The bonds must be paid off within ten years of 105.29 issuance. The bonds must be issued in compliance with chapter 105.30 475, except as otherwise provided in this section. A tax levy 105.31 must be made for the payment of principal and interest on the 105.32 bonds in accordance with section 475.61. The sum of the tax 105.33 levies under this section and section 124.2455 for each year 105.34 must not exceed the amount of the district's total operating 105.35 capital revenue for the year the initial debt service levies are 105.36 certified. The district's general education levy for each year 106.1 must be reduced by the sum of (1) the amount of the tax levies 106.2 for debt service certified for each year for payment of the 106.3 principal and interest on the bonds., and (2) any excess amount 106.4 in the debt redemption fund used to retire bonds issued after 106.5 April 1, 1997. A district using an excess amount in the debt 106.6 redemption fund to retire the bonds shall report the amount used 106.7 for this purpose to the commissioner by July 15 of the following 106.8 fiscal year. A district having an outstanding capital loan 106.9 under section 124.431 or an outstanding debt service loan under 106.10 section 124.42 must not use an excess amount in the debt 106.11 redemption fund to retire the bonds. 106.12 (e) Notwithstanding paragraph (d), bonds issued by a 106.13 district within the first five years following voter approval of 106.14 a combination according to section 122.243, subdivision 2, must 106.15 be paid off within 20 years of issuance. All the other 106.16 provisions and limitation of paragraph (d) apply. 106.17 Sec. 14. Minnesota Statutes 1996, section 124.42, 106.18 subdivision 4, is amended to read: 106.19 Subd. 4. Each district receiving a debt service loan shall 106.20 levy for debt service in that year and each year thereafter, 106.21 until all its debts to the fund are paid, (a) the amount of its 106.22 maximum effort debt service levy, or (b) the amount of its 106.23 required debt service levy less the amount of any debt service 106.24 loan in that year, whichever is greater.Whenever the maximum106.25effort debt service levy is greater the district shall remit to106.26the commissioner, within ten days after its receipt of the last106.27regular tax distribution in the year in which it is collected,106.28that portion of the maximum effort debt service tax collections,106.29including penalties and interest, which exceeds the required106.30debt service levy.The district shall remit payments to the 106.31 commissioner according to section 124.45. On or before 106.32 September130 in each year the commissioner shall notify the 106.33 county auditor of each county containing taxable property 106.34 situated within the school district of the amount of the maximum 106.35 effort debt service levy of the district for that year, and said 106.36 county auditor or auditors shall extend upon the tax rolls an ad 107.1 valorem tax upon all taxable property within the district in the 107.2 aggregate amount so certified. 107.3 Sec. 15. Minnesota Statutes 1996, section 124.431, 107.4 subdivision 2, is amended to read: 107.5 Subd. 2. [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 107.6 school district or a joint powers district that intends to apply 107.7 for a capital loan must submit a proposal to the commissioner 107.8 for review and comment according to section 121.15 on or before 107.9 July 1 of an odd-numbered year. The commissioner must prepare a 107.10 review and comment on the proposed facility, regardless of the 107.11 amount of the capital expenditure required to construct the 107.12 facility. In addition to the information provided under section 107.13 121.15, subdivision 7, the commissioner shall require that 107.14 predesign packages comparable to those required under section 107.15 16B.335 be prepared by the applicant school district. The 107.16 predesign packages must be sufficient to define the scope, cost, 107.17 and schedule of the project and must demonstrate that the 107.18 project has been analyzed according to appropriate space needs 107.19 standards and also consider the following criteria in 107.20 determining whether to make a positive review and comment. 107.21 (a) To grant a positive review and comment the commissioner 107.22 must determine that all of the following conditions are met: 107.23 (1) the facilities are needed for pupils for whom no 107.24 adequate facilities exist or will exist; 107.25 (2) the district will serve, on average, at least 80 pupils 107.26 per grade or is eligible for elementary or secondary sparsity 107.27 revenue; 107.28 (3) no form of cooperation with another district would 107.29 provide the necessary facilities; 107.30 (4) the facilities are comparable in size and quality to 107.31 facilities recently constructed in other districts that have 107.32 similar enrollments; 107.33 (5) the facilities are comparable in size and quality to 107.34 facilities recently constructed in other districts that are 107.35 financed without a capital loan; 107.36 (6) the district is projected to maintain or increase its 108.1 average daily membership over the next five years or is eligible 108.2 for elementary or secondary sparsity revenue; 108.3 (7) the current facility poses a threat to the life, 108.4 health, and safety of pupils, and cannot reasonably be brought 108.5 into compliance with fire, health, or life safety codes; 108.6 (8) the district has made a good faith effort, as evidenced 108.7 by its maintenance expenditures, to adequately maintain the 108.8 existing facility during the previous ten years and to comply 108.9 with fire, health, and life safety codes and state and federal 108.10 requirements for handicapped accessibility; 108.11 (9) the district has made a good faith effort to encourage 108.12 integration of social service programs within the new facility; 108.13 and 108.14 (10) evaluations by school boards of adjacent districts 108.15 have been received. 108.16 (b) The commissioner may grant a negative review and 108.17 comment if: 108.18 (1) the state demographer has examined the population of 108.19 the communities to be served by the facility and determined that 108.20 the communities have not grown during the previous five years; 108.21 (2) the state demographer determines that the economic and 108.22 population bases of the communities to be served by the facility 108.23 are not likely to grow or to remain at a level sufficient, 108.24 during the next ten years, to ensure use of the entire facility; 108.25 (3) the need for facilities could be met within the 108.26 district or adjacent districts at a comparable cost by leasing, 108.27 repairing, remodeling, or sharing existing facilities or by 108.28 using temporary facilities; 108.29 (4) the district plans do not include cooperation and 108.30 collaboration with health and human services agencies and other 108.31 political subdivisions; or 108.32 (5) if the application is for new construction, an existing 108.33 facility that would meet the district's needs could be purchased 108.34 at a comparable cost from any other source within the area. 108.35 Sec. 16. Minnesota Statutes 1996, section 124.431, 108.36 subdivision 11, is amended to read: 109.1 Subd. 11. [CONTRACT.] (a) Each capital loan must be 109.2 evidenced by a contract between the school district and the 109.3 state acting through the commissioner. The contract must 109.4 obligate the state to reimburse the district, from the maximum 109.5 effort school loan fund, for eligible capital expenses for 109.6 construction of the facility for which the loan is granted, an 109.7 amount computed as provided in subdivision 8. The commissioner 109.8 must receive from the school district a certified resolution of 109.9 the school board estimating the costs of construction and 109.10 reciting that contracts for construction of the facilities for 109.11 which the loan is granted have been awarded and that bonds of 109.12 the district have been issued and sold in the amount necessary 109.13 to pay all estimated costs of construction in excess of the 109.14 amount of the loan. The contract must obligate the district to 109.15 repay the loan out of the excesses of its maximum effort debt 109.16 service levy over its required debt service levy, including 109.17 interest at a rate equal to the weighted average annual rate 109.18 payable on Minnesota state school loan bonds issued for the 109.19 project and disbursed to the districts on a reimbursement basis, 109.20 but in no event less than 3-1/2 percent per year on the 109.21 principal amount from time to time unpaid. 109.22 (b) The district shall each year, as long as it is indebted 109.23 to the state, levy for debt service(a)(i) the amount of its 109.24 maximum effort debt service levy or(b)(ii) the amount of its 109.25 required debt service levy, whichever is greater, except as the 109.26 required debt service levy may be reduced by a loan under 109.27 section 124.42.On November 20 of each year each district109.28having an outstanding capital loan shall compute the excess109.29amount in the debt redemption fund. The commissioner shall109.30prescribe the form and calculation to be used in computing the109.31excess amount. A completed copy of this form shall be sent to109.32the commissioner before December 1 of each year. The109.33commissioner may recompute the excess amount and shall promptly109.34notify the district of the recomputed amount. On December 15 of109.35each year, the district shall remit to the commissioner an109.36amount equal to the excess amount in the debt redemption fund.110.1When the maximum effort debt service levy is greater, the110.2district shall remit to the commissioner within ten days after110.3its receipt of the last regular tax distribution in each year,110.4that part of the debt service tax collections, including110.5penalties and interest that exceeded the required debt service110.6levy.The district shall remit payments to the commissioner 110.7 according to section 124.45. 110.8 (c) The commissioner shall supervise the collection of 110.9 outstanding accounts due the fund and may, by notice to the 110.10 proper county auditor, require the maximum levy to be made as 110.11 required in this subdivision. Interest on capital loans must be 110.12 paid on December 15 of the year after the year the loan is 110.13 granted and annually in later years. On or before September1110.14 30 in each year the commissioner shall notify the county auditor 110.15 of each county containing taxable property situated within the 110.16 school district of the amount of the maximum effort debt service 110.17 levy of the district for that year. The county auditor or 110.18 auditors shall extend upon the tax rolls an ad valorem tax upon 110.19 all taxable property within the district in the aggregate amount 110.20 so certified. 110.21 Sec. 17. Minnesota Statutes 1996, section 124.45, is 110.22 amended to read: 110.23 124.45 [PAYMENT AND APPLICATIONS OF PAYMENT.] 110.24 Subdivision 1. [PAYMENT.] (a) On November 20 of each year, 110.25 each district having an outstanding capital loan or debt service 110.26 loan shall compute the excess amount in the debt redemption 110.27 fund. The commissioner shall prescribe the form and calculation 110.28 to be used in computing the excess amount. A completed copy of 110.29 this form shall be sent to the commissioner before December 1 of 110.30 each year. The commissioner may recompute the excess amount and 110.31 shall promptly notify the district of the recomputed amount. 110.32 (b) On December 15 of each year, the district shall remit 110.33 to the commissioner an amount equal to the greater of: 110.34 (i) the excess amount in the debt redemption fund; or 110.35 (ii) the amount by which the maximum effort debt service 110.36 levy exceeds the required debt service levy for that calendar 111.1 year. 111.2 Any late payments shall be assessed an interest charge using the 111.3 interest rates specified for the debt service notes and capital 111.4 loan contracts. 111.5 (c) If a payment required under the maximum effort school 111.6 aid law is not made within 30 days, the commissioner may reduce 111.7 any subsequent payments due the district under chapters 124 and 111.8 124A by the amount due, after providing written notice to the 111.9 district. 111.10 Subd. 2. [APPLICATION OF PAYMENTS.] The commissioner shall 111.11 apply payments receivedfrom collections of maximum effort debt111.12service levies in excess of required debt service levies of a111.13district on its debt service notes and capital loan111.14contractsunder the maximum effort school aid law and aids 111.15 withheld according to subdivision 1, paragraph (b), as follows: 111.16 First, to payment of interest accrued on its notes, if any; 111.17 second, to interest on its contracts, if any; third, toward 111.18 principal of its notes, if any; and last, toward principal of 111.19 its contracts, if any. While more than one note or more than 111.20 one contract is held, priority of payment of interest shall be 111.21 given to the one of earliest date, and after interest accrued on 111.22 all notes is paid, similar priority shall be given in the 111.23 application of any remaining amount to the payment of 111.24 principal. In any year when the receipts from a district are 111.25 not sufficient to pay the interest accrued on any of its notes 111.26 or contracts, the deficiency shall be added to the principal, 111.27 and the commissioner shall notify the district and each county 111.28 auditor concerned of the new amount of principal of the note or 111.29 contract. 111.30 Sec. 18. [124.825] [HISTORIC BUILDING REVENUE.] 111.31 Subdivision 1. [ELIGIBILITY.] A district that maintains a 111.32 school building listed on the National Register of Historic 111.33 Places is eligible for historic building revenue. 111.34 Subd. 2. [REVENUE.] A district's historic building revenue 111.35 is equal to $100 times the number of actual pupil units served 111.36 in the school building. 112.1 Subd. 3. [LEVY.] To obtain historic building revenue, a 112.2 district may levy an amount, not to exceed the district's 112.3 revenue, equal to the district's revenue authority for that year 112.4 times the lesser of one or the ratio of the adjusted net tax 112.5 capacity divided by its actual pupil units for that school year 112.6 to the equalizing factor. 112.7 Subd. 4. [AID.] A district's historic building aid is 112.8 equal to the difference between the district's revenue minus the 112.9 levy. If a district does not levy the entire amount permitted, 112.10 the district's aid must be reduced in proportion to the amount 112.11 levied. 112.12 Sec. 19. Minnesota Statutes 1996, section 124.83, 112.13 subdivision 1, is amended to read: 112.14 Subdivision 1. [HEALTH AND SAFETY PROGRAM.] To receive 112.15 health and safety revenue for any fiscal year a district must 112.16 submit to the commissioner of children, families, and learning 112.17 an application for aid and levy by the date determined by the 112.18 commissioner. The application may be for hazardous substance 112.19 removal, fire and life safety code repairs, labor and industry 112.20 regulated facility and equipment violations, and health, safety, 112.21 and environmental management, including indoor air quality 112.22 management. The application must include a health and safety 112.23 program adopted by the school district board. The program must 112.24 include the estimated cost, per building, of the program by 112.25 fiscal year. 112.26 Sec. 20. Minnesota Statutes 1996, section 124.83, 112.27 subdivision 2, is amended to read: 112.28 Subd. 2. [CONTENTS OF PROGRAM.] A district must adopt a 112.29 health and safety program. The program must include plans, 112.30 where applicable, for hazardous substance removal, fire and life 112.31 safety code repairs, regulated facility and equipment 112.32 violations, and health, safety, and environmental management, 112.33 including indoor air quality management. 112.34 (a) A hazardous substance plan must contain provisions for 112.35 the removal or encapsulation of asbestos from school buildings 112.36 or property, asbestos-related repairs, cleanup and disposal of 113.1 polychlorinated biphenyls found in school buildings or property, 113.2 and cleanup, removal, disposal, and repairs related to storing 113.3 heating fuel or transportation fuels such as alcohol, gasoline, 113.4 fuel, oil, and special fuel, as defined in section 296.01. If a 113.5 district has already developed a plan for the removal or 113.6 encapsulation of asbestos as required by the federal Asbestos 113.7 Hazard Emergency Response Act of 1986, the district may use a 113.8 summary of that plan, which includes a description and schedule 113.9 of response actions, for purposes of this section. The plan 113.10 must also contain provisions to make modifications to existing 113.11 facilities and equipment necessary to limit personal exposure to 113.12 hazardous substances, as regulated by the federal Occupational 113.13 Safety and Health Administration under Code of Federal 113.14 Regulations, title 29, part 1910, subpart Z; or is determined by 113.15 the commissioner to present a significant risk to district staff 113.16 or student health and safety as a result of foreseeable use, 113.17 handling, accidental spill, exposure, or contamination. 113.18 (b) A fire and life safety plan must contain a description 113.19 of the current fire and life safety code violations, a plan for 113.20 the removal or repair of the fire and life safety hazard, and a 113.21 description of safety preparation and awareness procedures to be 113.22 followed until the hazard is fully corrected. 113.23 (c) A facilities and equipment violation plan must contain 113.24 provisions to correct health and safety hazards as provided in 113.25 department of labor and industry standards pursuant to section 113.26 182.655. 113.27 (d) A health, safety, and environmental management plan 113.28 must contain a description of training, record keeping, hazard 113.29 assessment, and program management as defined in section 124.829. 113.30 (e) A plan to test for and mitigate radon produced hazards. 113.31 (f) A plan to monitor and improve indoor air quality. 113.32 Sec. 21. Minnesota Statutes 1996, section 124.91, 113.33 subdivision 1, is amended to read: 113.34 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When a 113.35 district finds it economically advantageous to rent or lease a 113.36 building or land for any instructional purposes or for school 114.1 storage or furniture repair, and it determines that 114.2 the operating capitalexpenditure facilities revenuesrevenue 114.3 authorized undersections 124.243 andsection 124A.22, 114.4 subdivision 10, are insufficient for this purpose, it may apply 114.5 to the commissioner for permission to make an additional capital 114.6 expenditure levy for this purpose. An application for 114.7 permission to levy under this subdivision must contain financial 114.8 justification for the proposed levy, the terms and conditions of 114.9 the proposed lease, and a description of the space to be leased 114.10 and its proposed use. 114.11 (b) The criteria for approval of applications to levy under 114.12 this subdivision must include: the reasonableness of the price, 114.13 the appropriateness of the space to the proposed activity, the 114.14 feasibility of transporting pupils to the leased building or 114.15 land, conformity of the lease to the laws and rules of the state 114.16 of Minnesota, and the appropriateness of the proposed lease to 114.17 the space needs and the financial condition of the district. 114.18 The commissioner must not authorize a levy under this 114.19 subdivision in an amount greater than the cost to the district 114.20 of renting or leasing a building or land for approved purposes. 114.21 The proceeds of this levy must not be used for custodial or 114.22 other maintenance services. A district may not levy under this 114.23 subdivision for the purpose of leasing or renting a 114.24 district-owned building to itself. 114.25 (c) For agreements finalized after July 1, 1997, a district 114.26 may not levy under this subdivision for the purpose of: (i) 114.27 leasing a building or land with an option to purchase under 114.28 section 465.71; or (ii) leasing a building or land used 114.29 primarily for purposes other than special or alternative 114.30 education instruction from a cooperative unit of government, as 114.31 defined in section 123.35, subdivision 19b, paragraph (d), that 114.32 the cooperative unit is leasing with an option to purchase under 114.33 section 465.71, if the commissioner determines that the payment 114.34 required for the purchase at the end of the term of the lease is 114.35 less than the projected market value of the property. 114.36 Sec. 22. Minnesota Statutes 1996, section 124.95, 115.1 subdivision 2, is amended to read: 115.2 Subd. 2. [ELIGIBILITY.] (a) The following portions of a 115.3 district's debt service levy qualify for debt service 115.4 equalization: 115.5 (1) debt service for repayment of principal and interest on 115.6 bonds issued before July 2, 1992; 115.7 (2) debt service for bonds refinanced after July 1, 1992, 115.8 if the bond schedule has been approved by the commissioner and, 115.9 if necessary, adjusted to reflect a 20-year maturity schedule; 115.10 and 115.11 (3) debt service for bonds issued after July 1, 1992, for 115.12 construction projects that have received a positive review and 115.13 comment according to section 121.15, if the commissioner has 115.14 determined that the district has met the criteria under section 115.15 124.431, subdivision 2, and if the bond schedule has been 115.16 approved by the commissioner and, if necessary, adjusted to 115.17 reflect a 20-year maturity schedule. 115.18 (b) The criterion in section 124.431, subdivision 2, 115.19 paragraph (a), clause (2), shall be considered to have been met 115.20 if the district in the fiscal year in which the bonds are 115.21 authorized at an election conducted under chapter 475: 115.22 (i) serves an average of at least 66 pupils per grade in 115.23 the grades to be served by the facility; or 115.24 (ii) is eligible for elementary or secondary sparsity 115.25 revenue. 115.26 (c) The criterion described in section 124.431, subdivision 115.27 2, paragraph (a), clause (9), does not apply to bonds authorized 115.28 by elections held before July 1, 1992. 115.29 (d) The criterion in section 124.431, subdivision 2, 115.30 paragraph (a), clause (2), shall also be considered to have been 115.31 met if the construction project under review serves students in 115.32 elementary school grades. Only the debt service levy for that 115.33 portion of the facility serving students in elementary school 115.34 grades, as determined by the commissioner, shall be eligible for 115.35 debt service equalization under this paragraph. 115.36 (e) For the purpose of this subdivision the department 116.1 shall determine the eligibility for sparsity at the location of 116.2 the new facility, or the site of the new facility closest to the 116.3 nearest operating school if there is more than one new facility. 116.4 (f) For the purpose of this subdivision, the department 116.5 shall evaluate each project, and if the district does not 116.6 qualify for sparsity aid, and if the new facility will serve 116.7 fewer than 66 pupils per grade on average, then the commissioner 116.8 may qualify the project for debt service equalization aid if 116.9 unique circumstances are found to exist by the commissioner. 116.10 Sec. 23. Minnesota Statutes 1996, section 124.961, is 116.11 amended to read: 116.12 124.961 [DEBT SERVICE APPROPRIATION.] 116.13 (a)$30,054,000$35,480,000 in fiscal year 116.1419961998,$28,162,000$38,159,000 in fiscal year19971999, 116.15 and$33,948,000$38,390,000 in fiscal year19982000 and each 116.16 year thereafter is appropriated from the general fund to the 116.17 commissioner of children, families, and learning for payment of 116.18 debt service equalization aid under section 124.95. The1998116.19 2000 appropriation includes$4,970,000$3,842,000 for1997116.20 1999 and$28,978,000$34,548,000 for19982000. 116.21 (b) The appropriations in paragraph (a) must be reduced by 116.22 the amount of any money specifically appropriated for the same 116.23 purpose in any year from any state fund. 116.24 Sec. 24. Minnesota Statutes 1996, section 124A.22, 116.25 subdivision 10, is amended to read: 116.26 Subd. 10. [TOTAL OPERATING CAPITAL REVENUE.] (a) For 116.27 fiscal year 1997 and thereafter, total operating capital revenue 116.28 for a district equals the amount determined under paragraph (b), 116.29 (c), (d), (e), or (f), plus $68 times the actual pupil units for 116.30 the school year. The revenue must be placed in a reserved 116.31 account in the general fund and may only be used according to 116.32 subdivision 11. 116.33 (b) For fiscal years 1996 and later, capital revenue for a 116.34 district equals $100 times the district's maintenance cost index 116.35 times its actual pupil units for the school year. 116.36 (c) For 1996 and later fiscal years, the previous formula 117.1 revenue for a district equals $128 times its actual pupil units 117.2 for fiscal year 1995. 117.3 (d) Notwithstanding paragraph (b), for fiscal year 1996, 117.4 the revenue for each district equals 25 percent of the amount 117.5 determined in paragraph (b) plus 75 percent of the previous 117.6 formula revenue. 117.7 (e) Notwithstanding paragraph (b), for fiscal year 1997, 117.8 the revenue for each district equals 50 percent of the amount 117.9 determined in paragraph (b) plus 50 percent of the previous 117.10 formula revenue. 117.11 (f) Notwithstanding paragraph (b), for fiscal year 1998, 117.12 the revenue for each district equals 75 percent of the amount 117.13 determined in paragraph (b) plus 25 percent of the previous 117.14 formula revenue. 117.15 (g) The revenue for a district that operates a program 117.16 under section 121.585, is increased by an amount equal 117.17 to$15$30 times the number of actual pupil units at the site 117.18 where the program is implemented. This revenue shall be used 117.19 for air conditioning and other capital needs related to the 117.20 program. 117.21 Sec. 25. Minnesota Statutes 1996, section 124A.22, 117.22 subdivision 11, is amended to read: 117.23 Subd. 11. [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 117.24 operating capital revenue may be used only for the following 117.25 purposes: 117.26 (1) to acquire land for school purposes; 117.27 (2) to acquire or construct buildings for school purposes, 117.28 up to $400,000; 117.29 (3) to rent or lease buildings, including the costs of 117.30 building repair or improvement that are part of a lease 117.31 agreement; 117.32 (4) to improve and repair school sites and buildings, and 117.33 equip or reequip school buildings with permanent attached 117.34 fixtures; 117.35 (5) for a surplus school building that is used 117.36 substantially for a public nonschool purpose; 118.1 (6) to eliminate barriers or increase access to school 118.2 buildings by individuals with a disability; 118.3 (7) to bring school buildings into compliance with the 118.4 uniform fire code adopted according to chapter 299F; 118.5 (8) to remove asbestos from school buildings, encapsulate 118.6 asbestos, or make asbestos-related repairs; 118.7 (9) to clean up and dispose of polychlorinated biphenyls 118.8 found in school buildings; 118.9 (10) to clean up, remove, dispose of, and make repairs 118.10 related to storing heating fuel or transportation fuels such as 118.11 alcohol, gasoline, fuel oil, and special fuel, as defined in 118.12 section 296.01; 118.13 (11) for energy audits for school buildings and to modify 118.14 buildings if the audit indicates the cost of the modification 118.15 can be recovered within ten years; 118.16 (12) to improve buildings that are leased according to 118.17 section 123.36, subdivision 10; 118.18 (13) to pay special assessments levied against school 118.19 property but not to pay assessments for service charges; 118.20 (14) to pay principal and interest on state loans for 118.21 energy conservation according to section 216C.37 or loans made 118.22 under the northeast Minnesota economic protection trust fund act 118.23 according to sections 298.292 to 298.298; 118.24 (15) to purchase or lease interactive telecommunications 118.25 equipment; 118.26 (16) by school board resolution, to transfer money into the 118.27 debt redemption fund to: (i) pay the amounts needed to meet, 118.28 when due, principal and interest payments on certain obligations 118.29 issued according to chapter 475; or (ii) pay principal and 118.30 interest on debt service loans or capital loans according to 118.31 section 124.44; 118.32 (17) to pay capital expenditure equipment-related 118.33 assessments of any entity formed under a cooperative agreement 118.34 between two or more districts; 118.35 (18) to purchase or lease computers and related materials, 118.36 copying machines, telecommunications equipment, and other 119.1 noninstructional equipment; 119.2 (19) to purchase or lease assistive technology or equipment 119.3 for instructional programs; 119.4 (20) to purchase textbooks; 119.5 (21) to purchase new and replacement library books; 119.6 (22) to purchase vehicles; 119.7 (23) to purchase or lease telecommunications equipment, 119.8 computers, and related equipment for integrated information 119.9 management systems for: 119.10 (i) managing and reporting learner outcome information for 119.11 all students under a results-oriented graduation rule; 119.12 (ii) managing student assessment, services, and achievement 119.13 information required for students with individual education 119.14 plans; and 119.15 (iii) other classroom information management needs; and 119.16 (24) to pay personnel costs directly related to the 119.17 acquisition, operation, and maintenance of telecommunications 119.18 systems, computers, related equipment, and network and 119.19 applications software. 119.20 Sec. 26. [INDOOR AIR QUALITY ADVISORY COMMITTEE.] 119.21 Subdivision 1. [ESTABLISHMENT.] An indoor air quality 119.22 advisory committee shall be established by the commissioner of 119.23 the department of children, families, and learning. 119.24 Subd. 2. [MEMBERSHIP.] The advisory committee shall 119.25 consist of no more than 15 members appointed by the 119.26 commissioner. Up to ten members shall be appointed from the 119.27 public, including teachers, parents, and other persons. At 119.28 least three of the public members shall possess expertise 119.29 regarding indoor air quality. One member shall be appointed 119.30 from the medical profession. One member shall be appointed from 119.31 each of the following educational organizations: (1) Minnesota 119.32 school boards association; (2) Minnesota rural education 119.33 association; (3) schools for equity in education; and (4) 119.34 association of metropolitan school districts. Each of these 119.35 educational organizations shall propose one member for 119.36 appointment. The commissioner shall consider regional 120.1 representation in appointing members. 120.2 Subd. 3. [EXPIRATION.] The indoor air quality advisory 120.3 committee expires July 1, 1998. 120.4 Sec. 27. [DUTIES OF THE DEPARTMENT OF CHILDREN, FAMILIES, 120.5 AND LEARNING.] 120.6 Subdivision 1. [DUTIES.] The department of children, 120.7 families, and learning will, in collaboration with the 120.8 departments of health and administration, school districts, and 120.9 other public agencies, develop the following: 120.10 (1) an indoor air quality maintenance manual; 120.11 (2) a planning and construction manual to ensure indoor air 120.12 quality; and 120.13 (3) a public information plan for students, parents, staff, 120.14 and other members of the public. 120.15 The above products will contain the following elements: 120.16 (1) process standards for school districts and the 120.17 department of children, families, and learning to follow when 120.18 addressing indoor air quality concerns; 120.19 (2) informational materials for a model school district 120.20 indoor air quality program; 120.21 (3) training needs for school district employees; 120.22 (4) procedures for school districts when disseminating 120.23 indoor air quality information and test results to parents, 120.24 teachers, and others; 120.25 (5) indoor air quality considerations under the review and 120.26 comment process for school buildings, specific evaluations of 120.27 proposed construction standards and materials, to be included in 120.28 the review and comment standards; 120.29 (6) building systems maintenance and housekeeping practices 120.30 required to ensure adequate indoor air quality; 120.31 (7) architectural, engineering, maintenance engineering, 120.32 and other design practices to positively affect indoor air 120.33 quality; 120.34 (8) regional and state resources available to assist 120.35 districts with information and training needs of school staff, 120.36 parents, and community; 121.1 (9) regional and state resources available to assist 121.2 districts with medical evaluation relative to indoor air quality 121.3 complaints; and 121.4 (10) recommended steps a district should take to attain a 121.5 satisfactory level of indoor air quality. 121.6 Subd. 2. [MANUAL; REPORT.] The indoor air quality resource 121.7 manual shall be made available for distribution and training 121.8 February 1, 1998, and a report regarding the status of indoor 121.9 air quality in Minnesota schools shall be made to the 1998 121.10 legislature. 121.11 Sec. 28. [REVENUE USE APPROVAL.] 121.12 The use of revenue for construction in independent school 121.13 district No. 561, Goodridge, authorized in Laws 1995, First 121.14 Special Session chapter 3, article 8, section 23, and in 121.15 independent school district No. 600, Fisher, authorized in Laws 121.16 1995, First Special Session chapter 3, article 8, section 22, 121.17 subdivision 21, is approved. The department shall not make any 121.18 levy or aid adjustments related to these projects. 121.19 Sec. 29. [INTERDISTRICT COOPERATION FOR SCHOOL DISTRICT 121.20 NO. 638, SANBORN.] 121.21 Notwithstanding Minnesota Statutes, section 122.541, 121.22 subdivision 1, or other law to the contrary, independent school 121.23 district No. 638, Sanborn, may participate in an interdistrict 121.24 cooperation agreement with independent school district No. 178, 121.25 Storden-Jeffers, and independent school district No. 633, 121.26 Lamberton, although independent school district No. 638, 121.27 Sanborn, does not operate a school with at least three grades. 121.28 Resident pupils of independent school district No. 638, Sanborn, 121.29 may be educated in either of the other two cooperating districts. 121.30 Sec. 30. [CHISAGO LAKES AREA SCHOOLS, BONDED DEBT.] 121.31 Independent school district No. 2144, Chisago Lakes Area, 121.32 may modify its plan adopted according to Minnesota Statutes, 121.33 section 122.242, subdivision 9, clause (1), so that independent 121.34 school district No. 2144 assumes all of the remaining debt 121.35 service as of the effective date of this section for bonds that 121.36 were outstanding at the time of the combination of independent 122.1 school districts No. 141, Chisago Lakes and No. 140, Taylors 122.2 Falls, and the tax levy for that debt service is spread on all 122.3 the property in independent school district No. 2144, Chisago 122.4 Lakes Area. 122.5 Sec. 31. [TEACHER RETIREMENT DATE.] 122.6 Notwithstanding Minnesota Statutes, section 354.44, 122.7 subdivision 4, teachers retiring in June 1997 from the high 122.8 school in independent school district No. 701, Hibbing, shall 122.9 have May 30, 1997, as their date of retirement for the purpose 122.10 of receiving retirement benefits. 122.11 Sec. 32. [DEBT SERVICE EQUALIZATION AID.] 122.12 Notwithstanding Minnesota Statutes, section 124.95, 122.13 subdivision 2, for the purpose of determining eligibility for 122.14 debt service equalization aid for independent school district 122.15 No. 2835, Janesville-Waldorf-Pemberton, the department of 122.16 children, families, and learning must include pupils presently 122.17 attending nonpublic schools to determine the average number of 122.18 pupils served per grade in the proposed facility. 122.19 Sec. 33. [INDEPENDENT SCHOOL DISTRICT NO. 270, HOPKINS; 122.20 EXEMPTION.] 122.21 Minnesota Statutes, section 123.35, subdivision 19a, does 122.22 not apply to independent school district No. 270, Hopkins, for 122.23 the Lindbergh Center, located at 2400 Lindbergh Drive, 122.24 Minnetonka, Minnesota. 122.25 Sec. 34. [APPROPRIATIONS.] 122.26 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 122.27 LEARNING.] The sums indicated in this section are appropriated 122.28 from the general fund to the department of children, families, 122.29 and learning for the fiscal years designated. 122.30 Subd. 2. [SPECIAL CONSOLIDATION AID.] For special 122.31 consolidation aid under Minnesota Statutes, section 124.2728: 122.32 $3,000 ..... 1998 122.33 The 1998 appropriation includes $3,000 for 1997 and $0 for 122.34 1998. 122.35 Subd. 3. [CONSOLIDATION TRANSITION AID.] For districts 122.36 consolidating under Minnesota Statutes, section 124.2726: 123.1 $1,254,000 ..... 1998 123.2 $1,151,000 ..... 1999 123.3 The 1998 appropriation includes $67,000 for 1997 and 123.4 $1,187,000 for 1998. 123.5 The 1999 appropriation includes $131,000 for 1998 and 123.6 $1,020,000 for 1999. 123.7 Any balance in the first year does not cancel but is 123.8 available in the second year. 123.9 Subd. 4. [COOPERATION AND COMBINATION AID.] For aid for 123.10 districts that cooperate and combine according to Minnesota 123.11 Statutes, section 124.2725: 123.12 $562,000 ..... 1998 123.13 $ 42,000 ..... 1999 123.14 The 1998 appropriation includes $178,000 for 1997 and 123.15 $384,000 for 1998. 123.16 The 1999 appropriation includes $42,000 for 1998 and $0 for 123.17 1999. 123.18 Any balance in the first year does not cancel but is 123.19 available in the second year. 123.20 Subd. 5. [DISTRICT COOPERATION REVENUE.] For district 123.21 cooperation revenue aid: 123.22 $9,766,000 ..... 1998 123.23 $ 954,000 ..... 1999 123.24 The 1998 appropriation includes $1,172,000 for 1997 and 123.25 $8,594,000 for 1998. 123.26 The 1999 appropriation includes $954,000 for 1998 and $0 123.27 for 1999. 123.28 Subd. 6. [INTERAGENCY COLLABORATION GRANTS.] For 123.29 interagency collaboration grants to plan and implement 123.30 collaborative programs between school districts, cities, 123.31 counties, and other local units of government in the governance, 123.32 administration, and operations of those local public entities: 123.33 $500,000 ..... 1998 123.34 Grants of up to $100,000 shall be awarded to plan and 123.35 implement systems of joint governance, management, and delivery 123.36 of programs and services which result in more effective and 124.1 efficient services for children, families, and adults. Programs 124.2 and services include, but are not limited to: 124.3 (1) long-range planning among local governing boards; 124.4 (2) transportation and vehicle maintenance; 124.5 (3) buildings and grounds management; 124.6 (4) food and nutrition services; 124.7 (5) business affairs; 124.8 (6) technology support; and 124.9 (7) library services. 124.10 The department of children, families, and learning shall 124.11 give preference to local units of government that have 124.12 previously demonstrated success in family collaboratives or 124.13 other collaborative efforts. 124.14 Any balance available in the first year does not cancel but 124.15 is available in the second year. 124.16 Subd. 7. [HIBBING GRANT.] For a grant to independent 124.17 school district No. 701, Hibbing, for expenses not covered by 124.18 insurance for a fire loss at Hibbing high school: 124.19 $250,000 ..... 1998 124.20 Independent school district No. 701, Hibbing, shall 124.21 reimburse the state general fund for any expenses covered by 124.22 this appropriation that are recovered as a result of a lawsuit 124.23 related to the fire loss at Hibbing high school. 124.24 Subd. 8. [HISTORIC BUILDING AID.] For historic building 124.25 aid under section 124.825: 124.26 $173,000 ..... 1998 124.27 $173,000 ..... 1999 124.28 Subd. 9. [PLANNING GRANT; ISLE.] For a facilities planning 124.29 grant to independent school district No. 473, Isle: 124.30 $50,000 ..... 1998 124.31 This appropriation is available until June 30, 1999. 124.32 Subd. 10. [ENVIRONMENTAL SPECIALIST.] For an environmental 124.33 specialist at the department of children, families, and learning: 124.34 $50,000 ..... 1998 124.35 $50,000 ..... 1999 124.36 Subd. 11. [FLOOD LOSSES.] For grants and loans to 125.1 independent school district Nos. 2854, Ada-Borup; 2176, 125.2 Warren-Alvarado-Oslo; 846, Breckenridge; and other districts 125.3 affected by the 1997 floods for expenses associated with the 125.4 floods not covered by insurance or state or federal disaster 125.5 relief: 125.6 $300,000 ..... 1998 125.7 The commissioner shall award grants and loans to school 125.8 districts to cover expenses associated with the 1997 floods. 125.9 The grants or loans may be for capital losses or for 125.10 extraordinary operating expenses resulting from the floods. 125.11 School districts shall repay any loan or grant amounts to the 125.12 department if those amounts are otherwise funded from other 125.13 sources. The commissioner shall establish the terms and 125.14 conditions of any loans and may request any necessary 125.15 information from school districts before awarding a grant or 125.16 loan. 125.17 Sec. 35. [EFFECTIVE DATES.] 125.18 (a) Sections 1; 3; 12; 13; 28; 29; 31; and 34, subdivision 125.19 7, are effective the day following final enactment. 125.20 (b) Section 18 is effective for revenue for fiscal year 125.21 1999 and thereafter. 125.22 (c) Section 22 is effective for bonds authorized under 125.23 Minnesota Statutes, chapter 475, in fiscal year 1997 and 125.24 thereafter. 125.25 (d) Section 30 is effective the day following compliance by 125.26 the school board of independent school district No. 2144, 125.27 Chisago Lakes Area, with Minnesota Statutes, section 645.021. 125.28 (e) Section 32 is effective for bonds authorized by voters 125.29 under Minnesota Statutes, chapter 475, during calendar year 1997 125.30 or 1998 only. 125.31 ARTICLE 5 125.32 EDUCATION EXCELLENCE 125.33 Section 1. Minnesota Statutes 1996, section 120.064, 125.34 subdivision 3, is amended to read: 125.35 Subd. 3. [SPONSOR.] A school board, community college, 125.36 state university, technical college, the state board of 126.1 education, or the University of Minnesota may sponsor one or 126.2 more charter schools. 126.3No more than a total of 40 charter schools may be126.4authorized not more than three of which may be sponsored by126.5public post-secondary institutions. The state board of126.6education shall advise potential sponsors when the maximum126.7number of charter schools has been authorized.126.8 Sec. 2. Minnesota Statutes 1996, section 120.064, 126.9 subdivision 4, is amended to read: 126.10 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 126.11 authorize any of the following types of applicants to operate a 126.12 charter school: 126.13 (1) one or more licensed teachers under section 125.05, 126.14 subdivision 1, to operate a charter school subject to approval126.15by the state board of education.; or 126.16 (2) an individual, parent or group of parents, or a 126.17 nonprofit organization governed by chapter 317A or operating as 126.18 a tax exempt organization for educational purposes only under 126.19 chapter 501(c)(3) of the Internal Revenue Code. 126.20 (b) When the sponsor is not the state board of education, 126.21 the authorization is subject to the approval of the state board. 126.22 (c) When an applicant under paragraph (a), clause (2), 126.23 seeks sponsorship directly from an entity other than a school 126.24 board under subdivision 3, the applicant must submit for review 126.25 and comment a copy of its proposal for sponsorship to the school 126.26 board of the district of the proposed location of the charter 126.27 school. The application may proceed simultaneously with the 126.28 board's review and comment. 126.29 (d) If an applicant has sought sponsorship from a school 126.30 board or a post-secondary institution and the school board or 126.31 post-secondary institution elects not to sponsorathe charter 126.32 school, the applicant may appeal theschool board'sdecision of 126.33 the school board or post-secondary institution to the state 126.34 board of educationif two members of the school board voted to126.35sponsor the school. If the state board authorizes the school, 126.36 the state board shall sponsor the school according to this 127.1 section. The school shall be organized and operated as a 127.2 cooperative under chapter 308A or nonprofit corporation under 127.3 chapter 317A. 127.4(b)(e) Before the operators mayform andoperate as a 127.5 school,thea sponsor, other than the state board, must file an 127.6 affidavit with the state board of education stating its intent 127.7 to authorize a charter school. The affidavit must state the 127.8 terms and conditions under which the sponsor would authorize a 127.9 charter school. The state board must approve or disapprove the 127.10 sponsor's proposed authorization within 60 days of receipt of 127.11 the affidavit. Failure to obtain state board approval precludes 127.12 a sponsor from authorizing the charter school that was the 127.13 subject of the affidavit. 127.14(c)(f) The operators authorized to organize and operate a 127.15 school shall hold an election for members of the school's board 127.16 of directors in a timely manner after the school is operating. 127.17 Any staff members who are employed at the school, including 127.18 teachers providing instruction under a contract with a 127.19 cooperative, and all parents of children enrolled in the school 127.20 may participate in the election. Licensed teachers employed at 127.21 the school, including teachers providing instruction under a 127.22 contract with a cooperative, must be a majority of the members 127.23 of the board of directors., except when an alternative 127.24 governance arrangement is approved by the state board. When an 127.25 individual, parent or group of parents, or nonprofit 127.26 organization that contracts for its instructional programs 127.27 operate a school, teachers are not required to be a majority of 127.28 the members of the board of directors. A provisional board may 127.29 operate before the election of the school's board of directors. 127.30 Board of director meetings must comply with section 471.705. 127.31(d)(g) The granting or renewal of a charter by a 127.32 sponsoring entity shall not be conditioned upon the bargaining 127.33 unit status of the employees of the school. 127.34 Sec. 3. Minnesota Statutes 1996, section 120.064, 127.35 subdivision 4a, is amended to read: 127.36 Subd. 4a. [CONVERSION OF EXISTING SCHOOLS.] A school board 128.1 may convert one or more of its existing schools to charter 128.2 schools under this section if90 percenta majority of the 128.3 full-time teachers at the school sign a petition seeking 128.4 conversion. The conversion must occur at the beginning of an 128.5 academic year. 128.6 Sec. 4. Minnesota Statutes 1996, section 120.064, 128.7 subdivision 5, is amended to read: 128.8 Subd. 5. [CONTRACT.] The sponsor's authorization for a 128.9 charter school shall be in the form of a written contract signed 128.10 by the sponsor and the board of directors of the charter 128.11 school. The contract is binding on both parties during its 128.12 entire term except if the parties to the contract mutually agree 128.13 to modify or terminate or the contract is terminated under 128.14 subdivision 21. The contract for a charter school shall be in 128.15 writing and contain at least the following: 128.16 (1) a description of a program that carries out one or more 128.17 of the purposes in subdivision 1; 128.18 (2) specific outcomes pupils are to achieve under 128.19 subdivision 10; 128.20 (3) admission policies and procedures; 128.21 (4) management and administration of the school; 128.22 (5) requirements and procedures for program and financial 128.23 audits; 128.24 (6) how the school will comply with subdivisions 8, 13, 15, 128.25 and 21; 128.26 (7) assumption of liability by the charter school; 128.27 (8) types and amounts of insurance coverage to be obtained 128.28 by the charter school; and 128.29 (9) the term of the contract, which may be up toshall be 128.30 three school years. 128.31 Sec. 5. Minnesota Statutes 1996, section 120.064, 128.32 subdivision 8, is amended to read: 128.33 Subd. 8. [REQUIREMENTS.] (a) A charter school shall meet 128.34 all applicable state and local health and safety requirements. 128.35 (b)TheA schoolmustsponsored by a school district may be 128.36 located inthe sponsoringany district, unlessanotherthe 129.1 school boardagrees to locate a charter school sponsored by129.2another district in its boundariesof the district of the 129.3 proposed location disapproves and has not adopted a resolution 129.4 under section 120.062, subdivision 3. If such a school board 129.5 denies a request to locate within its boundaries a charter 129.6 school sponsored by anotherdistrictschool board, the 129.7 sponsoringdistrictschool board may appeal to the state board 129.8 of education. If the state board authorizes the school, the 129.9 state board shall sponsor the school. A school sponsored by a 129.10 post-secondary institution may be located at any place the 129.11 institution considers convenient. Before agreeing to sponsor a 129.12 charter school, a post-secondary institution that sponsors a 129.13 charter school shall notify the school district of its intent to 129.14 locate a charter school in that district. 129.15 (c) A charter school must be nonsectarian in its programs, 129.16 admission policies, employment practices, and all other 129.17 operations. A sponsor may not authorize a charter school or 129.18 program that is affiliated with a nonpublic sectarian school or 129.19 a religious institution. 129.20 (d) Charter schools shall not be used as a method of 129.21 providing education or generating revenue for students who are 129.22 being home schooled. 129.23 (e) The primary focus of a charter school must be to 129.24 provide a comprehensive program of instruction for at least one 129.25 grade or age group from five through 18 years of age. 129.26 Instruction may be provided to people younger than five years 129.27 and older than 18 years of age. 129.28 (f) A charter school may not charge tuition. 129.29 (g) A charter school is subject to and shall comply with 129.30 chapter 363 and section 126.21. 129.31 (h) A charter school is subject to and shall comply with 129.32 the pupil fair dismissal act, sections 127.26 to 127.39, and the 129.33 Minnesota public school fee law, sections 120.71 to 120.76. 129.34 (i) A charter school is subject to the same financial 129.35 audits, audit procedures, and audit requirements as a school 129.36 district. The audit must be consistent with the requirements of 130.1 sections 121.904 to 121.917, except to the extent deviations are 130.2 necessary because of the program at the school. The department 130.3 of children, families, and learning, state auditor, or 130.4 legislative auditor may conduct financial, program, or 130.5 compliance audits. 130.6 (j) A charter school is a school district for the purposes 130.7 of tort liability under chapter 466. 130.8 (k) A charter school is subject to the graduation rule 130.9 requirements under section 121.11, subdivision 7c, and system 130.10 accountability and public reporting requirements under section 130.11 121.1115. 130.12 Sec. 6. Minnesota Statutes 1996, section 120.064, 130.13 subdivision 11, is amended to read: 130.14 Subd. 11. [EMPLOYMENT AND OTHER OPERATING MATTERS.] (a) A 130.15 charter school shall employ or contract with necessary teachers, 130.16 as defined by section 125.03, subdivision 1, who hold valid 130.17 licenses to perform the particular service for which they are 130.18 employed in the school. The school may employ necessary 130.19 employees who are not required to hold teaching licenses to 130.20 perform duties other than teaching and may contract for other 130.21 services. The school may discharge teachers and nonlicensed 130.22 employees. 130.23 (b) A charter school may enter into a contract for teaching 130.24 or administrative services related to instruction only with: 130.25 (1) an individual teacher for the teaching services of that 130.26 teacher; 130.27 (2) an individual administrator for the administrative 130.28 services of that administrator; or 130.29 (3) a nonprofit entity not controlled by or under common 130.30 control with a related organization as defined in section 130.31 317A.011, subdivision 18, that is other than a nonprofit 130.32 corporation. 130.33 (c) The board of directors also shall decide matters 130.34 related to the operation of the school, including budgeting, 130.35 curriculum and operating procedures. 130.36 Sec. 7. Minnesota Statutes 1996, section 120.064, is 131.1 amended by adding a subdivision to read: 131.2 Subd. 14a. [REVIEW AND COMMENT.] The department shall 131.3 review and comment on the evaluation, by the chartering school 131.4 district, of the performance of a charter school before the 131.5 charter school's contract is renewed. The information from the 131.6 review and comment shall be reported to the state board of 131.7 education in a timely manner. 131.8 Sec. 8. Minnesota Statutes 1996, section 120.064, 131.9 subdivision 20a, is amended to read: 131.10 Subd. 20a. [TEACHERSTEACHER AND OTHER EMPLOYEE 131.11 RETIREMENT.] (a) Teachers in a charter school shall be public 131.12 school teachers for the purposes of chapters 354 and 354a. 131.13 (b) Except for teachers under paragraph (a), employees in a 131.14 charter school shall be public employees for the purposes of 131.15 chapter 353. 131.16 Sec. 9. Minnesota Statutes 1996, section 120.064, is 131.17 amended by adding a subdivision to read: 131.18 Subd. 21a. [DISPOSITION OF ASSETS AND LIABILITIES UPON 131.19 DISSOLUTION.] When a charter school, whether organized as a 131.20 nonprofit under chapter 317A or a cooperative under chapter 131.21 308A, is dissolved, the school shall comply with the dissolution 131.22 procedures under chapter 501B and either chapter 317A or chapter 131.23 308A. 131.24 Sec. 10. Minnesota Statutes 1996, section 121.11, 131.25 subdivision 7c, is amended to read: 131.26 Subd. 7c. [RESULTS-ORIENTED GRADUATION RULE.] (a) The 131.27 legislature is committed to establishing a rigorous, 131.28 results-oriented graduation rule for Minnesota's public school 131.29 students. To that end, the state board shall use its rulemaking 131.30 authority under subdivision 7b to adopt a statewide, 131.31 results-oriented graduation rule to be implemented starting with 131.32 students beginning ninth grade in the 1996-1997 school year. 131.33 The board shall not prescribe in rule or otherwise the delivery 131.34 system, form of instruction, or a single statewide form of 131.35 assessment that local sites must use to meet the requirements 131.36 contained in this rule. 132.1 (b) To successfully accomplish paragraph (a), the state 132.2 board shall set in rule high academic standards for all 132.3 students. The standards must contain the foundational skills in 132.4 the three core curricular areas of reading, writing, and 132.5 mathematics while meeting requirements for high school 132.6 graduation. The standards must also provide an opportunity for 132.7 students to excel by meeting higher academic standards through a 132.8 profile of learning that uses curricular requirements to allow 132.9 students to expand their knowledge and skills beyond the 132.10 foundational skills. All state board actions regarding the rule 132.11 must be premised on the following: 132.12 (1) the rule is intended to raise academic expectations for 132.13 students, teachers, and schools; 132.14 (2) any state action regarding the rule must evidence 132.15 consideration of school district autonomy; and 132.16 (3) the department of children, families, and learning, 132.17 with the assistance of school districts, must make available 132.18 information about all state initiatives related to the rule to 132.19 students and parents, teachers, and the general public in a 132.20 timely format that is appropriate, comprehensive, and readily 132.21 understandable. 132.22 (c) For purposes of adopting the rule, the state board, in 132.23 consultation with the department, recognized psychometric 132.24 experts in assessment, and other interested and knowledgeable 132.25 educators, using the most current version of professional 132.26 standards for educational testing, shall evaluate the 132.27 alternative approaches to assessment. 132.28 (d) The content of the graduation rule must differentiate 132.29 between minimum competencies reflected in the basic requirements 132.30 assessment and rigorous profile of learning standards. When 132.31 fully implemented, the requirements for high school graduation 132.32 in Minnesota must include both basic requirements and the 132.33 required profile of learning. The profile of learning must 132.34 measure student performance using performance-based assessments 132.35 compiled over time that integrate higher academic standards, 132.36 higher order thinking skills, and application of knowledge from 133.1 a variety of content areas. The profile of learning shall 133.2 include a broad range of academic experience and accomplishment 133.3 necessary to achieve the goal of preparing students to function 133.4 effectively as purposeful thinkers, effective communicators, 133.5 self-directed learners, productive group participants, and 133.6 responsible citizens. 133.7 (e) The state board shall periodically review and report on 133.8 the assessment process and student achievement with the 133.9 expectation of raising the standards and expanding high school 133.10 graduation requirements, and may use its rulemaking authority to 133.11 amend an existing graduation rule by adding, modifying, or 133.12 deleting a measure to accommodate a changed educational policy 133.13 or circumstance. The state board shall provide the chairs of 133.14 the education committees in the house and senate with a copy of 133.15 any proposed amendment to an existing graduation rule at least 133.16 ten business days before the amended rule is formally adopted. 133.17 (f) The state board shall report in writing to the 133.18 legislature annually by January 15 on its progress in developing 133.19 and implementing the graduation requirements according to the 133.20 requirements of this subdivision and section 123.97 until such 133.21 time as all the graduation requirements are implemented. 133.22 Sec. 11. Minnesota Statutes 1996, section 121.1115, is 133.23 amended by adding a subdivision to read: 133.24 Subd. 1a. [EDUCATIONAL ACCOUNTABILITY; PURPOSE.] (a) An 133.25 independent office of educational accountability is established 133.26 to address the needs for educational accountability, credible 133.27 information on the condition of prekindergarten to grade 12 133.28 education in Minnesota, cost-effectiveness, and long-term 133.29 continuity, and to separate accountability and public reporting 133.30 from monitoring and administrative oversight. The office shall 133.31 consider and periodically report to the legislature, at least on 133.32 a biennial basis, on the needs of students and the condition of 133.33 education in Minnesota. 133.34 (b) In realizing its purpose under paragraph (a), the 133.35 office of educational accountability shall advise the 133.36 legislature on the degree to which the statewide educational 134.1 accountability and reporting system includes a comprehensive, 134.2 performance-based assessment framework that makes schools 134.3 accountable for students achieving the goals described in the 134.4 state's high school graduation rule. The office shall consider 134.5 whether the statewide system of educational accountability 134.6 provides useful comparative and contextual data on students, 134.7 schools, districts, and the state, and whether it includes: 134.8 (1) public reporting on the condition of the educational 134.9 system using multiple indicators that are essential to 134.10 describing and understanding the needs of children and youth and 134.11 apply to all students; 134.12 (2) a core set of educational indicators that are 134.13 comparable and capable of being aggregated across school 134.14 districts and across time on a statewide basis; 134.15 (3) public reporting on the condition of the educational 134.16 system that supports the direction of state educational policy; 134.17 (4) a public reporting system that is flexible, permits the 134.18 adding, modifying, and deleting of measures as policies and 134.19 circumstances change; 134.20 (5) a public reporting system that aligns conceptually and 134.21 in practice with the information needs of local school 134.22 districts, and contains measures that local communities and 134.23 schools can influence; 134.24 (6) reports of performance information that assure all 134.25 students' privacy and confidentiality; 134.26 (7) student performance indicators that contain clearly 134.27 articulated standards of student performance and have broad 134.28 community support; 134.29 (8) reports of educational performance that reflect current 134.30 results and trends over time; 134.31 (9) a reporting system that reduces and consolidates the 134.32 existing reporting burden on school districts by better using 134.33 existing information and building on current data reporting 134.34 systems at the state and district levels; and 134.35 (10) a reporting system that is managed in a nonpartisan 134.36 and highly competent manner to ensure the public's use and 135.1 confidence and minimizes the reporting burden on school 135.2 districts. To the extent the statewide educational 135.3 accountability and reporting system does not include a 135.4 comprehensive, performance-based assessment framework that makes 135.5 schools accountable for students achieving the goals described 135.6 in the state's high school graduation rule, or does not provide 135.7 useful comparative and contextual data on students, schools, 135.8 districts, and the state, the office shall recommend to the 135.9 legislature ways to improve the accountability and reporting 135.10 system. 135.11 (c) When the office reviews the statewide educational 135.12 accountability and reporting system, it shall also: 135.13 (1) consider the objectivity and neutrality of the state's 135.14 educational accountability system; 135.15 (2) develop strong relationships with other policy actors 135.16 and with leaders outside government; 135.17 (3) recommend a uniform, statewide policy applicable to all 135.18 schools and school districts regarding the participation or 135.19 exclusion of students with special needs or limited English 135.20 proficiency on statewide assessments; and 135.21 (4) consider the impact of a high stakes testing program on 135.22 school curriculum and student learning. 135.23 (d) A technical quality review advisory panel is 135.24 established to assist the office of educational accountability 135.25 in clearly articulating the criteria for judging the statewide 135.26 education accountability and reporting system. Among other 135.27 things, the criteria shall measure the extent to which the 135.28 system: 135.29 (1) creates intended and unintended consequences; 135.30 (2) is fairly administered; 135.31 (3) evaluates the desired and appropriate complex 135.32 intellectual processes; 135.33 (4) is relevant and meaningful to teachers, students, and 135.34 parents; 135.35 (5) evaluates skills that are transferable; 135.36 (6) is cost-efficient; and 136.1 (7) is comprehensive in its coverage of content. 136.2 Panel members shall include psychometricians and other 136.3 experts in the field of student assessment, an elementary school 136.4 teacher employed in a state public school, a secondary school 136.5 teacher employed in a state public school, a curriculum and 136.6 instruction director employed in a state public school, and a 136.7 local school administrator. Panel members are appointed by and 136.8 serve at the pleasure of the speaker of the house, the house 136.9 minority leader, the majority leader of the senate, and the 136.10 senate minority leader. Panel members shall receive 136.11 compensation according to section 15.059, subdivision 3. 136.12 (e) The office of educational accountability shall report 136.13 at least biennially by November 1 preceding the first year of 136.14 the state's biennial legislative session to the legislature on 136.15 the status of the statewide system of educational accountability. 136.16 Sec. 12. Minnesota Statutes 1996, section 121.1115, is 136.17 amended by adding a subdivision to read: 136.18 Subd. 1b. [STATEWIDE TESTING POLICY.] (a) The commissioner 136.19 shall include the following components in the statewide 136.20 educational accountability and public reporting system: 136.21 (1) a statewide testing system that is consistent with the 136.22 provisions of section 121.11, subdivision 7c, as amended by Laws 136.23 1997, chapter 1, section 1; and 136.24 (2) in order to identify successful and at-risk schools, an 136.25 evaluation of school site and school district performance levels 136.26 during the 1997-1998 school year and thereafter using an 136.27 established performance baseline developed from students' test 136.28 scores that reflects students' unweighted, mean test scores in 136.29 each tested subject, and identifies demographic factors that 136.30 strongly correlate with student performance listed in 136.31 subdivision 2. 136.32 (b) The commissioner shall integrate into the statewide 136.33 educational accountability and public reporting system a method 136.34 for rewarding a school that achieves a specified gain over its 136.35 threshold level for school improvement and for assisting a 136.36 school that fails to achieve a specified gain or fails to reach 137.1 its threshold level for school improvement. The commissioner 137.2 shall integrate the distinguished teachers program under section 137.3 121.1116 into any school improvement plan. 137.4 Sec. 13. [121.1116] [DISTINGUISHED TEACHERS PROGRAM.] 137.5 The commissioner shall develop a distinguished teachers 137.6 program to assist schools in improving performance and 137.7 increasing accountability consistent with the requirements of 137.8 section 121.1115, subdivision 1b. Outstanding and highly 137.9 skilled licensed teachers who deserve recognition for their 137.10 excellent teaching and who are willing to fulfill the purposes 137.11 of the program shall be designated a "distinguished teacher." 137.12 Sec. 14. Minnesota Statutes 1996, section 121.611, is 137.13 amended to read: 137.14 121.611 [NONLICENSED COMMUNITY EXPERTS; VARIANCE.] 137.15 Subdivision 1. [AUTHORIZATION.] Notwithstanding any law or 137.16 state board of education rule to the contrary, the board of 137.17 teaching may allow school districts or charter schools to hire 137.18 nonlicensed community experts to teach in the public schools or 137.19 charter schools on a limited basis according to this section. 137.20 Subd. 2. [APPLICATIONS; CRITERIA.] The school district or 137.21 charter school shall apply to the board of teaching for approval 137.22 to hire nonlicensed teaching personnel from the community. In 137.23 approving or disapproving thedistrict'sapplication for each 137.24 community expert, the board shall consider: 137.25 (1) the qualifications of the community person whom the 137.26 district or charter school proposes to employ; 137.27 (2) the reasons for thedistrict'sneed for a variance from 137.28 the teacher licensure requirements; 137.29 (3) the district's efforts to obtain licensed teachers, who 137.30 are acceptable to the school board, for the particular course or 137.31 subject area or the charter school's efforts to obtain licensed 137.32 teachers for the particular course or subject area; 137.33 (4) the amount of teaching time for which the community 137.34 expert would be hired; 137.35 (5) the extent to which the district or charter school is 137.36 utilizing other nonlicensed community experts under this 138.1 section; 138.2 (6) the nature of the community expert's proposed teaching 138.3 responsibility; and 138.4 (7) the proposed level of compensation to the community 138.5 expert. 138.6 Subd. 3. [APPROVAL OF PLAN.] The board of teaching shall 138.7 approve or disapprove an application within 60 days of receiving 138.8 it from a school district or charter school. 138.9 Sec. 15. Minnesota Statutes 1996, section 124.248, 138.10 subdivision 1, is amended to read: 138.11 Subdivision 1. [GENERAL EDUCATION AND REFERENDUM REVENUE.] 138.12 (a) General education revenue and referendum revenue shall be 138.13 paid to a charter school as though it were a school district. 138.14 (b) The general education revenue for each pupil unit is 138.15 the state average general education revenue per pupil unit minus 138.16 $170, calculated without compensatory revenue, transportation 138.17 sparsity revenue, and the transportation portion of the 138.18 transition revenue adjustment, plus compensatory, limited 138.19 English proficiency and assurance of mastery revenue as though 138.20 the school were a school district. 138.21 (c) The referendum revenue for each pupil unit is the 138.22 referendum equalization revenue per pupil unit in the resident 138.23 district according to section 124A.03, subdivision 1f, if 138.24 approved or renewed after July 1, 1997. 138.25 Sec. 16. Minnesota Statutes 1996, section 125.05, 138.26 subdivision 1c, is amended to read: 138.27 Subd. 1c. [SUPERVISORY AND COACH QUALIFICATIONS; CODE OF 138.28 ETHICS.] The state board of education shall issue licenses under 138.29 its jurisdiction to persons the state board finds to be 138.30 qualified and competent for their respective positions under the 138.31 rules it adopts. The state board of education must develop, by 138.32 rule, a code of ethics for supervisory and coaching personnel 138.33 covering standards of professional practices, including areas of 138.34 ethical conduct and professional performance and methods of 138.35 enforcement. The state board of education shall consult with the 138.36 affected personnel when developing a code of ethics. 139.1 Sec. 17. Minnesota Statutes 1996, section 125.05, 139.2 subdivision 2, is amended to read: 139.3 Subd. 2. [EXPIRATION AND RENEWAL.] (a) Each licenseissued139.4 the department of children, families, and learning issues 139.5 throughtheits licensing sectionof the department of children,139.6families, and learningmust bear the date of issue. Licenses 139.7 must expire and be renewedin accordance withaccording to the 139.8 respective rulesadopted bythe board of teaching or the state 139.9 board of education adopts. Requirements forrenewal ofrenewing 139.10 a license must includeproduction ofshowing satisfactory 139.11 evidence of successful teaching experience for at least one 139.12 school year during the period covered by the license in grades 139.13 or subjects for which the license is valid orcompletion of139.14 completing such additional preparation as the board of 139.15 teachingshall prescribeprescribes. The state board of 139.16 education shall establish requirements forrenewal ofrenewing 139.17 the licenses of supervisory personnelmust be established by the139.18state board of education. 139.19 (b) The board of teaching may offer alternative continuing 139.20 relicensure options for teachers who are accepted into and 139.21 complete the national board for professional teaching standards 139.22 certification process, and offer additional continuing 139.23 relicensure options for teachers who earn national board for 139.24 professional teaching standards certification. Continuing 139.25 relicensure requirements for teachers who do not maintain 139.26 national board for professional teaching standards certification 139.27 are those the board prescribes. 139.28 (c) The board of teaching may consider making technology 139.29 instruction or technology proficiency a requirement for 139.30 continuing education and relicensure under its teacher licensing 139.31 rules. 139.32 Sec. 18. Minnesota Statutes 1996, section 128C.08, 139.33 subdivision 5, is amended to read: 139.34 Subd. 5. [HEAD VARSITY COACH; CODE OF ETHICS.] (a) A head 139.35 varsity coach may be excluded under this section only by the 139.36 school board employing the coach. 140.1 (b) The board of directors of the Minnesota state high 140.2 school league or a school board may exclude from any high school 140.3 league activity any coach the school board employs who violates 140.4 the code of ethics for coaching personnel under section 125.05, 140.5 subdivision 1c. 140.6 Sec. 19. Laws 1995, First Special Session chapter 3, 140.7 article 11, section 21, subdivision 3, is amended to read: 140.8 Subd. 3. [CHARTER SCHOOL EVALUATION.] For the state board 140.9 of education to evaluate the performance of charter schools 140.10 authorized according to Minnesota Statutes, section 120.064: 140.11 $75,000 ..... 1996 140.12The state board must review and comment on the evaluation,140.13by the chartering school district, of the performance of a140.14charter school before that charter school's contract is140.15renewed. The state board may provide assistance to a school140.16district in evaluating a charter school that has been chartered140.17by that school board. The board must report annually to the140.18education committees of the legislature on the results of its140.19evaluations.This amount is available until June 30, 1997. 140.20 Sec. 20. Laws 1996, chapter 412, article 4, section 34, 140.21 subdivision 4, is amended to read: 140.22 Subd. 4. [COMMUNITY-BASED CHARTER SCHOOL GRANT.] For a 140.23 grant for community-based charter schools or other schools 140.24 located in independent school district No. 625, St. Paul: 140.25 $300,000 ..... 1997 140.26 The commissioner may establish criteria and any reporting 140.27 or match requirements for the grant under this section. 140.28 Sec. 21. [RECOMMENDATIONS FOR SUPERVISORY AND COACHING 140.29 PERSONNEL CODE OF ETHICS.] 140.30 Subdivision 1. [ADVISORY GROUP.] The state board of 140.31 education shall convene by July 1, 1997, an advisory group to 140.32 recommend to the state board the standards of professional 140.33 practices for supervisory and coaching personnel, including 140.34 provisions affecting ethical conduct, professional performance, 140.35 and enforcement methods, consistent with the requirements in 140.36 Minnesota Statutes, section 125.05, subdivision 1c, directing 141.1 the state board to adopt in rule a code of ethics for 141.2 supervisory and coaching personnel. The state board shall 141.3 appoint the following seven members to the advisory group: two 141.4 elementary school principals; two secondary school principals; 141.5 one school superintendent; one other representative of 141.6 supervisory personnel; and one athletic coach. Once convened, 141.7 the task force members shall select a task force member to 141.8 preside over subsequent task force meetings. The department of 141.9 children, families, and learning may provide staff support for 141.10 advisory group activities at the request of the advisory group. 141.11 Subd. 2. [ADVISORY GROUP RECOMMENDATIONS.] The advisory 141.12 group shall present timely recommendations concerning 141.13 appropriate standards of professional practices for supervisory 141.14 and coaching personnel to the state board. The state board 141.15 shall consider the advisory group recommendations when 141.16 formulating its rule establishing a code of ethics for 141.17 supervisory and coaching personnel. 141.18 Subd. 3. [EXPIRATION.] The advisory group shall expire 141.19 after presenting its recommendations to the state board, or on 141.20 February 1, 1998, whichever occurs first. 141.21 Sec. 22. [EXEMPTION.] 141.22 Any contract entered into during the 1996-1997 school year 141.23 authorizing a charter school under Minnesota Statutes 1996, 141.24 section 120.064, subdivision 5, is exempt from the amended 141.25 requirements of Minnesota Statutes 1996, section 120.064, 141.26 subdivision 11, only as long as the sponsor of the charter 141.27 school finds and can adequately demonstrate to the state board 141.28 of education that the charter school continues without 141.29 interruption to satisfactorily meet all its performance 141.30 outcomes. If either the charter school sponsor or the state 141.31 board of education determines that a charter school under this 141.32 section is not satisfactorily meeting one or more of its 141.33 performance outcomes, the amended requirements of Minnesota 141.34 Statutes 1996, section 120.064, subdivision 11, apply to that 141.35 charter school when the determination is made. 141.36 Sec. 23. [GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING 142.1 STANDARDS.] 142.2 Subdivision 1. [ESTABLISHMENT.] A grant program to promote 142.3 professional teaching standards through the national board for 142.4 professional teaching standards for fiscal year 1998 is 142.5 established to provide eligible teachers with the opportunity to 142.6 receive national board for professional teaching standards 142.7 certification and to reward teachers who have already received 142.8 this certification. 142.9 Subd. 2. [ELIGIBILITY.] An applicant for a grant must be a 142.10 licensed kindergarten through grade 12 school teacher employed 142.11 in a state school. To be eligible for a grant, the teacher must 142.12 have been employed as a teacher for a minimum of five school 142.13 years and demonstrate either that the national board for 142.14 professional teaching standards has accepted the teacher as a 142.15 candidate for board certification or that the teacher already 142.16 has received board certification. 142.17 Subd. 3. [APPLICATION PROCESS.] To obtain a grant to 142.18 participate in the national board for professional teaching 142.19 standards certification process or to receive a reward for 142.20 already completing the board certification process, a teacher 142.21 must submit an application to the commissioner of children, 142.22 families, and learning in the form and manner the commissioner 142.23 establishes. The applicant must demonstrate either that the 142.24 national board for professional teaching standards has accepted 142.25 the teacher as a candidate for board certification or that the 142.26 teacher already has received board certification. The 142.27 commissioner shall consult with the state board of teaching when 142.28 reviewing the applications. 142.29 Subd. 4. [GRANT AWARDS; PROCEEDS.] (a) The commissioner 142.30 may award grants of $1,500 each to eligible teachers accepted as 142.31 candidates for national board for professional teaching 142.32 standards certification. Grant recipients shall use the grant 142.33 to participate in the certification process. Within 24 months 142.34 of receiving certification, a grant recipient must 142.35 satisfactorily complete one year of teaching service in a state 142.36 public school or repay the state the amount of the grant, except 143.1 if the commissioner determines that death or disability prevents 143.2 the grant recipient from providing the one year of teaching 143.3 service. 143.4 (b) The commissioner may award grants to eligible teachers 143.5 who have already completed the national board for professional 143.6 teaching standards certification process to reward their 143.7 effort. The amount of each grant shall not exceed $1,500 and 143.8 the commissioner shall establish criteria to determine the 143.9 actual amount of each grant. Grant recipients shall use the 143.10 grant proceeds for educational purposes, including purchasing 143.11 instructional materials, equipment, or supplies and realizing 143.12 professional development opportunities. 143.13 Sec. 24. [LABORATORY SCHOOL GRANTS.] 143.14 Subdivision 1. [ESTABLISHMENT.] The commissioner of 143.15 children, families, and learning shall make grants to 143.16 post-secondary institutions to establish at least three 143.17 laboratory schools that cooperate with interested school 143.18 districts to develop innovative teaching techniques that enhance 143.19 students' learning experiences. A laboratory school must be 143.20 nonsectarian in its programs, admissions policies, employment 143.21 practices, and all other operations. Two laboratory school 143.22 sites shall focus on improving education for work, family, and 143.23 community roles and responsibilities in high schools throughout 143.24 Minnesota. One laboratory school for improving lifework 143.25 learning must be located in the seven-county metropolitan area 143.26 and one laboratory school for improving lifework learning must 143.27 be located in greater Minnesota. 143.28 Subd. 2. [GRANT APPLICATION.] A public or private 143.29 post-secondary institution located in the state may submit an 143.30 application for a grant. Each grant application must include: 143.31 (1) the location of the laboratory school determined in 143.32 collaboration with a school district, or proposed as a charter 143.33 school; 143.34 (2) a five-year fiscal plan demonstrating that the school 143.35 shall operate with no additional state revenue except revenue 143.36 received under Minnesota Statutes, chapters 124 and 124A, and 144.1 the grant money awarded under this section; and 144.2 (3) for an applicant seeking a grant to improve lifework 144.3 learning, a description of how the applicant will use 144.4 information technologies and participate in partnerships with 144.5 kindergarten through grade 12 schools and post-secondary 144.6 institutions, business and industry, labor, agriculture, 144.7 government, and community-based organizations. 144.8 The commissioner of children, families, and learning, in 144.9 consultation with interested post-secondary institutions, shall 144.10 establish guidelines and an application process for the grants. 144.11 Subd. 3. [GRANT MONEY.] The grant money may be used for: 144.12 (1) transporting students; 144.13 (2) technology; 144.14 (3) equipment; 144.15 (4) teacher mentorships; 144.16 (5) building remodeling, renovation, or repair; 144.17 (6) disseminating innovative and effective teaching 144.18 techniques; 144.19 (7) education research to develop teaching methods, 144.20 assessments, and curriculum design; 144.21 (8) developing creative opportunities for parental 144.22 involvement; 144.23 (9) furthering school integration efforts; and 144.24 (10) other inventive teaching and learning practices 144.25 designed to implement the high school graduation standards under 144.26 Minnesota Statutes, section 121.11, subdivision 7c. 144.27 Sec. 25. [YEAR-ROUND SCHOOL/EXTENDED WEEK OR DAY PILOT 144.28 PROGRAM.] 144.29 (a) Consistent with the terms for receiving program grants 144.30 under Laws 1995, First Special Session chapter 3, article 7, 144.31 section 4, as amended by Laws 1996, chapter 412, article 7, 144.32 section 13, independent school district No. 624, White Bear 144.33 Lake, is eligible to receive additional grant funding for its 144.34 year-round school/extended week or day pilot program. 144.35 (b) The commissioner of children, families, and learning, 144.36 with the assistance of independent school district No. 624, 145.1 shall evaluate the efficacy of the district's program and submit 145.2 a report to the education committees of the legislature by 145.3 February 1, 2000. The commissioner shall include in the report 145.4 sufficient information to permit other school districts to 145.5 readily replicate the program if the commissioner determines 145.6 that the program is successful. 145.7 Sec. 26. [GIFTED AND TALENTED GRANTS.] 145.8 Subdivision 1. [ESTABLISHMENT.] Gifted and talented grants 145.9 are established to provide access to an appropriate program for 145.10 students identified as gifted or talented. A school district or 145.11 any group of school districts must use the grants to establish a 145.12 process for identifying gifted and talented students, offer 145.13 access to challenging learning experiences for students in 145.14 kindergarten through grade 12, and provide for staff development 145.15 in meeting the learning needs of gifted and talented students. 145.16 Subd. 2. [ELIGIBILITY; CRITERIA.] An applicant for a 145.17 gifted and talented grant must be a school district or any group 145.18 of school districts. The commissioner of children, families, 145.19 and learning, a representative of the alliance of the Minnesota 145.20 educators of the gifted and talented, a representative of the 145.21 Minnesota council of the gifted and talented, and a 145.22 representative of the challenge task force shall establish the 145.23 criteria for awarding grants for appropriate programs. 145.24 Subd. 3. [APPLICATION.] A school district or any group of 145.25 school districts must submit an application to the commissioner 145.26 of children, families, and learning in the form and manner the 145.27 commissioner establishes. 145.28 Subd. 4. [GRANT AWARDS.] A school district or any group of 145.29 districts may receive a grant in the amount of $25 per pupil per 145.30 year. The grant recipient must match one local dollar for every 145.31 state dollar received. The local match may include in kind 145.32 contributions. 145.33 Sec. 27. [COMMISSIONER OF CHILDREN, FAMILIES, AND 145.34 LEARNING.] 145.35 The commissioner of children, families, and learning shall 145.36 designate a staff member as a resource person for gifted and 146.1 talented programs to provide assistance to parents and school 146.2 districts. The commissioner shall pay all costs for that staff 146.3 member out of existing department appropriations. 146.4 Sec. 28. [APPROPRIATIONS.] 146.5 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 146.6 LEARNING.] The sums indicated in this section are appropriated 146.7 from the general fund to the department of children, families, 146.8 and learning for the fiscal years designated. 146.9 Subd. 2. [STATEWIDE TESTING.] For implementing statewide 146.10 testing and establishing a performance baseline under section 14: 146.11 $2,500,000 ..... 1998 146.12 $2,500,000 ..... 1999 146.13 The commissioner shall contract with an institution of 146.14 higher education to establish an independent office of 146.15 educational accountability. 146.16 Any balance in the first year does not cancel but is 146.17 available in the second year. 146.18 Subd. 3. [LABORATORY SCHOOL GRANTS.] For laboratory school 146.19 grants under section 24: 146.20 $ 5,000,000 ..... 1998 146.21 Any balance in the first year does not cancel but is 146.22 available in the second year. 146.23 Subd. 4. [ADVANCED PLACEMENT AND INTERNATIONAL 146.24 BACCALAUREATE PROGRAMS.] For the state advanced placement and 146.25 international baccalaureate programs, including public school 146.26 teacher summer training programs, follow-up teacher support 146.27 workshops, examination fee subsidies, and student scholarships: 146.28 $1,875,000 ..... 1998 146.29 $1,875,000 ..... 1999 146.30 $400,000 each year is for teachers to attend subject matter 146.31 summer training programs and follow-up support workshops 146.32 approved by the advanced placement or international 146.33 baccalaureate programs. The commissioner shall determine the 146.34 payment process and the amount of the subsidy. 146.35 Notwithstanding Minnesota Statutes, section 126.239, 146.36 subdivision 3, $1,175,000 each year is for the commissioner to 147.1 pay all examination fees for all students sitting for an 147.2 advanced placement examination, international baccalaureate 147.3 examination, or both. If this amount is not adequate, the 147.4 commissioner may pay less than the full examination fee. 147.5 $300,000 each year is for payments resulting from students' 147.6 qualifying scores. A school that offers an advanced placement 147.7 or international baccalaureate course shall receive an award for 147.8 each student in that teacher's course who receives a qualifying 147.9 score on the advanced placement or international baccalaureate 147.10 examination that covers the subject matter of the course. The 147.11 instructors who prepare students for advanced placement and 147.12 international baccalaureate exams in those schools receiving 147.13 awards under this subdivision shall use the awards to enhance 147.14 the advanced placement or international baccalaureate program. 147.15 In this section, "qualifying score" means 3 or better on an 147.16 advanced placement examination and 4 or better on an 147.17 international baccalaureate examination. Teacher stipend 147.18 amounts shall be $50 for each student who scores a 5 on an 147.19 advanced placement examination or 7 on an international 147.20 baccalaureate examination, $40 for each student who scores a 4 147.21 on an advanced placement examination or a 5 or 6 on an 147.22 international baccalaureate examination, and $25 for each 147.23 student who scores a 3 on an advanced placement examination or a 147.24 4 on an international baccalaureate examination. The 147.25 commissioner shall determine the payment process and the amount 147.26 of the award to the school. 147.27 A performance award to a school under this subdivision 147.28 shall not be a mandatory subject of bargaining under Minnesota 147.29 Statutes, chapter 179A, or any other law and shall not be a term 147.30 or condition of employment. The amount of any award shall be 147.31 final and shall not be subject to review by an arbitrator 147.32 through any grievance or other process or by a court through any 147.33 appeal process. 147.34 Any balance in the first year does not cancel but is 147.35 available in the second year. 147.36 Subd. 5. [TEACHER EDUCATION IMPROVEMENT.] For board of 148.1 teaching responsibilities relating to teacher licensure 148.2 restructuring and implementation of the teaching residency 148.3 program: 148.4 $450,000 ..... 1998 148.5 $450,000 ..... 1999 148.6 $200,000 of this biennial appropriation is available to the 148.7 board of teaching for further developing the results-oriented 148.8 teacher licensure system, for pilot site grants and other 148.9 methods of implementing the teacher residency program, and for 148.10 programs relating to teacher mentoring. 148.11 $300,000 of this biennial appropriation is for grants to 148.12 promote professional teaching standards under section 23. Of 148.13 this amount, $100,000 may be used by the commissioner to pay for 148.14 four half-time state coordinators that recruit and assist 148.15 teacher candidates. The state coordinators shall be licensed 148.16 kindergarten through grade 12 public school teachers. 148.17 Any balance in the first year does not cancel but is 148.18 available in the second year. 148.19 Subd. 6. [ST. PAUL COMMUNITY-BASED SCHOOL PROGRAM.] For a 148.20 grant to independent school district, No. 625, St. Paul, for 148.21 establishing and operating a community-based school program: 148.22 $3,000,000 ..... 1998 148.23 $3,000,000 ..... 1999 148.24 The purpose of the program is to improve student 148.25 achievement and to provide an integrated set of academic, 148.26 health, social, and recreational support services year-round, 148.27 and for an extended day to children, families, and the community. 148.28 Independent school district No. 625 shall collaborate with 148.29 the city of St. Paul; Ramsey county; the commissioner of 148.30 children, families, and learning; and a nonprofit operating 148.31 foundation located in St. Paul to establish and operate the 148.32 program. Before implementing the program, the district must 148.33 submit the following to the commissioner: 148.34 (1) the name and address of the school or schools to be 148.35 community-based schools; 148.36 (2) the grade levels and number of students to be served; 149.1 (3) general demographic characteristics of the area and 149.2 students to be served; 149.3 (4) the education curriculum and other programs to be 149.4 offered; 149.5 (5) the goals of the school and the means to measure 149.6 student achievement; 149.7 (6) a budget and operating plan, at least including the 149.8 governing structure and commitments by the city, county, and 149.9 foundation to the program; and 149.10 (7) documentation of community support. 149.11 This money may also be used to remodel, renovate, and 149.12 repair buildings used for a community-based school program. 149.13 This appropriation is available until June 30, 1999. 149.14 $4,000,000 of the appropriation in each fiscal year shall 149.15 not be included in the base for fiscal year 2000. 149.16 The commissioner may establish any reporting or match 149.17 requirements for the grant under this section. 149.18 Subd. 7. [SCIENCE-MATHEMATICS GRANT.] For continuation of 149.19 systemic change in science and mathematics education programs: 149.20 $1,332,000 ..... 1998 149.21 $1,332,000 ..... 1999 149.22 $40,000 of the appropriation in 1998 and $40,000 in 1999 is 149.23 for the south central Minnesota talented youth program. 149.24 Any balance in the first year does not cancel but is 149.25 available in the second year. 149.26 Subd. 8. [MINNESOTA HOMEWORK HELPLINE.] For the southeast 149.27 service cooperative to operate the Minnesota homework helpline: 149.28 $175,000 ..... 1998 149.29 $175,000 ..... 1999 149.30 Subd. 9. [WHITE BEAR LAKE EXTENDED YEAR, WEEK OR DAY PILOT 149.31 PROGRAM.] For independent school district No. 624, White Bear 149.32 Lake, for an additional year-round school/extended week or day 149.33 pilot program grant under section 25: 149.34 $100,000 ..... 1998 149.35 The appropriation is available until June 30, 1999. 149.36 Subd. 10. [GIFTED AND TALENTED GRANTS.] For grants for 150.1 gifted and talented programs according to section 26: 150.2 $2,500,000 ..... 1998 150.3 $2,500,000 ..... 1999 150.4 Any balance in the first year does not cancel but is 150.5 available in the second year. 150.6 Subd. 11. [METRO HOMEWORK HOTLINE.] For Metro Hotline for 150.7 Homework programs to assist students with homework by telephone 150.8 or other interactive technology: 150.9 $125,000 ..... 1998 150.10 $125,000 ..... 1999 150.11 Subd. 12. [URBAN EDUCATOR PROGRAM.] For a collaborative 150.12 urban educator program: 150.13 $200,000 ..... 1998 150.14 This appropriation is available until June 30, 1999. 150.15 Sec. 29. [REPEALERS.] 150.16 Minnesota Statutes 1996, section 124A.22, subdivision 2a; 150.17 and Laws 1994, chapter 647, article 7, section 18, are repealed. 150.18 Sec. 30. [EFFECTIVE DATES.] 150.19 (a) Section 15 is effective for revenue for fiscal year 150.20 1999. 150.21 (b) Sections 19 to 22 are effective the day following final 150.22 enactment. 150.23 ARTICLE 6 150.24 ACADEMIC PERFORMANCE 150.25 Section 1. Minnesota Statutes 1996, section 120.101, is 150.26 amended by adding a subdivision to read: 150.27 Subd. 5d. [WITHDRAWAL FROM SCHOOL.] Notwithstanding 150.28 subdivision 5 of this section, a student between the ages of 16 150.29 and 18 years old who seeks to withdraw from school is not 150.30 subject to compulsory instruction requirements under this 150.31 section if: 150.32 (1) school personnel meet with the student and the 150.33 student's parent or guardian to discuss the educational 150.34 opportunities available to the student at the school site and 150.35 other available educational opportunities, including at least 150.36 alternative secondary programs, area learning centers, charter 151.1 schools, post-secondary enrollment options, and enrollment in 151.2 another district; and 151.3 (2) the student and the student's parent or guardian elect 151.4 not to participate in an educational course or program at the 151.5 school site or elsewhere and instead have the student withdraw 151.6 from school, the student and the student's parent or guardian 151.7 sign a statement confirming the student's election to withdraw 151.8 from school. 151.9 Sec. 2. [120.1015] [LENGTH OF SCHOOL YEAR; DAYS OF 151.10 INSTRUCTION.] 151.11 A school board's annual school calendar shall include at 151.12 least three additional days of student instruction beyond the 151.13 number of days of student instruction the board formally adopted 151.14 as its school calendar at the beginning of the 1996-1997 school 151.15 year. 151.16 Sec. 3. Minnesota Statutes 1996, section 121.602, 151.17 subdivision 1, is amended to read: 151.18 Subdivision 1. [PROGRAM OUTCOMES.] The outcomes of the 151.19 educational effectiveness program are to: 151.20 (1) increase meaningful parental involvement in site-based 151.21 decision making; 151.22 (2) improve results-orientedinstructionaleducational 151.23 processes; 151.24 (3) create flexible school-based organizational structures; 151.25 and 151.26 (4) improve student achievement. 151.27 Sec. 4. Minnesota Statutes 1996, section 121.602, 151.28 subdivision 2, is amended to read: 151.29 Subd. 2. [ADVISORY TASK FORCE; PROGRAM IMPLEMENTATION.] 151.30 The commissioner of children, families, and learning shall 151.31 develop and maintain a program of educational effectiveness and 151.32 results-orientedinstructioneducation. The commissioner may 151.33 appoint an advisory task force to assist the department of 151.34 children, families, and learning in developing an implementation 151.35 program for providing staff development to school district staff 151.36 in educational effectiveness. The program shall be based on 152.1 established principles of instructional design and the essential 152.2 elements of effective instruction as determined by educational 152.3 research. The program shall take into account the diverse needs 152.4 of the school districts due to such factors as district size and 152.5 location. 152.6 Sec. 5. Minnesota Statutes 1996, section 121.602, 152.7 subdivision 4, is amended to read: 152.8 Subd. 4. [EDUCATIONAL EFFECTIVENESS STAFF DEVELOPMENT.] 152.9 The department of children, families, and learning shall provide 152.10 assistance to the school districts in implementing an 152.11 educational effectiveness program.In selecting an agency to152.12provide assistance to the school districts, the department shall152.13consider such factors as support of the proposal by the152.14participating school districts and the extent to which the152.15proposal provides for participation by school district staff.152.16The department shall evaluate the performance of the service152.17providers.The staff development shall be facilitated by 152.18 building level decision-making teams. The staff development 152.19 shall include clarification of individual school missions, 152.20 goals, expectations, enhancement of collaborative planning and 152.21 collegial relationships among the building staff, improvement of 152.22 curriculum, assessment, instructional and organizational skills, 152.23 improvement of financial and management skills, and planning of 152.24 other staff development programs. 152.25 Sec. 6. Minnesota Statutes 1996, section 123.34, is 152.26 amended by adding a subdivision to read: 152.27 Subd. 9b. [SUPERINTENDENT PERFORMANCE CONTRACTS.] The 152.28 board of a district with more than 5,000 full-time enrolled 152.29 students may enter into an employment contract with a 152.30 superintendent containing performance results the superintendent 152.31 must achieve. The performance results shall include student 152.32 achievement, and may also include curriculum improvement, 152.33 quality of instruction, student attendance, family involvement, 152.34 community involvement, school district management, or any other 152.35 performance result desired by the board. 152.36 Notwithstanding section 43A.17, subdivision 9, if the 153.1 superintendent achieves the required performance results, the 153.2 board may fix the superintendent's compensation exceeding 95 153.3 percent of the salary of the governor as set under section 153.4 15A.082. The board must establish a review and evaluation 153.5 procedure to measure achievement of the performance results. 153.6 Sec. 7. [124.305] [ENHANCED STUDENT PERFORMANCE THROUGH A 153.7 LENGTHENED SCHOOL YEAR.] 153.8 Subdivision 1. [ESTABLISHMENT.] A funding source is 153.9 established to provide additional instructional time to students 153.10 who may be at risk of underperforming on the state's basic 153.11 skills test. School districts must use funding to extend the 153.12 school year by three weeks. School districts may extend the 153.13 school year through extended week, extended day, or extended 153.14 hour school programs. To the extent possible, school sites must 153.15 target programming to students most at risk of underperforming 153.16 on the state's graduation standards. 153.17 Subd. 2. [PUPIL ATTENDANCE.] A school district shall 153.18 require students to attend an extended school year program if 153.19 the student: 153.20 (1) failed a Minnesota basic skills test; or 153.21 (2) is at risk of failing a Minnesota basic skills test as 153.22 determined by educators at the school site. 153.23 A school site may make the extended school year program 153.24 available to other students. 153.25 Subd. 3. [BASIC HOURS OF INSTRUCTION.] "Basic hours of 153.26 instruction" means the number of hours of instruction that a 153.27 school district provides for that grade level in the school 153.28 district during the second previous school year. 153.29 Subd. 4. [REVENUE.] Extended instructional time revenue 153.30 equals the product of: 153.31 (1) $163; and 153.32 (2) the number of pupils eligible for free lunch as 153.33 determined by the count for the previous fall. 153.34 Extended instructional time revenue is provided through 153.35 state aid. 153.36 Subd. 5. [RESERVE.] If a site determines that the revenue 154.1 available under subdivision 4 is insufficient to fund the 154.2 required offerings for students who failed or are at risk of 154.3 failing a Minnesota basic skills test, the site may apply to the 154.4 commissioner for additional extended instructional time state 154.5 aid. The commissioner shall establish criteria for allocating 154.6 additional extended instructional time state aid. 154.7 Subd. 6. [SITES.] A school district must allocate extended 154.8 school year to school sites in proportion to the number of free 154.9 lunch students attending the site. A school site may operate 154.10 its own extended year program or jointly operate a program with 154.11 other school sites. 154.12 Subd. 7. [REVENUE USES.] A school site must use extended 154.13 school year revenue to fund costs associated with providing 154.14 programs designed to help students reach the levels of 154.15 proficiency required by the state graduation rule. The programs 154.16 may be offered through a longer school day or week during the 154.17 regular school year or through a summer school program. 154.18 Subd. 8. [GIFTED AND TALENTED REVENUE USES.] A site that 154.19 determines that its students are meeting graduation requirements 154.20 may use any remaining extended school year revenue to provide 154.21 gifted and talented programming during the extended school year. 154.22 Subd. 9. [ADDITIONAL ELIGIBILITY.] A student eligible for 154.23 extended school year revenue under this section is also eligible 154.24 to participate in the graduation incentives program under 154.25 section 126.22. 154.26 Sec. 8. Minnesota Statutes 1996, section 124.646, 154.27 subdivision 1, is amended to read: 154.28 Subdivision 1. [SCHOOL LUNCH AID COMPUTATION.] Each school 154.29 year, school districts participating in the national school 154.30 lunch program shall be paid by the state in the amount of 154.316.57.5 cents for each full paid, reduced, and free student 154.32 lunch served to students in the district. 154.33 Sec. 9. [124.6475] [SUMMER FOOD SERVICE REPLACEMENT AID.] 154.34 States funds are available to compensate 154.35 department-approved summer food program sponsors for reduced 154.36 federal operating reimbursement rates under Public Law Number 155.1 104-193, the federal summer food service program. A sponsor is 155.2 eligible for summer food service replacement aid equal to the 155.3 sum of the following amounts: 155.4 (1) for breakfast service, subtract the current year 155.5 maximum reimbursement rate from the 1996 maximum reimbursement 155.6 rate and multiply the result by the number of breakfasts the 155.7 district served during the current school year; 155.8 (2) for lunch or supper service, subtract the current year 155.9 maximum reimbursement rate from the 1996 maximum reimbursement 155.10 rate and multiply the result by the number of lunches and 155.11 suppers the district served during the current school year; and 155.12 (3) for supplement service, subtract the current year 155.13 maximum reimbursement rate from the 1996 maximum reimbursement 155.14 rate and multiply the result by the number of supplement meals 155.15 the district served during the current school year. 155.16 Sec. 10. Minnesota Statutes 1996, section 124C.46, 155.17 subdivision 2, is amended to read: 155.18 Subd. 2. [PEOPLE TO BE SERVED.] A center shall provide 155.19 programs for secondary pupils and adults, giving priority to155.20serving persons between 16 and 21 years of age. Secondary155.21pupils to be served are those who are chemically dependent, not155.22likely to graduate from high school, need assistance in155.23vocational and basic skills, can benefit from employment155.24experiences, and need assistance in transition from school to155.25employment. Adults to be served are dislocated homemakers and155.26workers and others who need basic educational and social155.27services. In addition to offering programs, the center shall155.28coordinate the use of other available educational services,155.29social services, and post-secondary institutions in the155.30community.TheA center may also provide programs, including155.31work-based, service-learning, and applied learning opportunities155.32developed in collaboration with a local education and employment155.33transitions partnership,and services for elementary and 155.34 secondary pupils who are not attending the center to assist them 155.35 incompleting highbeing successful in school. Pupils eligible 155.36 to be served are those age five to adults 21 and older who 156.1 qualify under the graduation incentives program in section 156.2 126.22, subdivision 2. 156.3 Sec. 11. Minnesota Statutes 1996, section 126.22, 156.4 subdivision 2, is amended to read: 156.5 Subd. 2. [ELIGIBLE PUPILS.] The following pupils are 156.6 eligible to participate in theeducation optionsgraduation 156.7 incentives program: 156.8 (a) any pupil under the age of 21 who: 156.9 (1) performs substantially below the performance level for 156.10 pupils of the same age in a locally determined achievement test; 156.11 or 156.12 (2) is at least one year behind in satisfactorily 156.13 completing coursework or obtaining credits for graduation; or 156.14 (3) is pregnant or is a parent; or 156.15 (4) has been assessed as chemically dependent; or 156.16 (5) has been excluded or expelled according to sections 156.17 127.26 to 127.39; or 156.18 (6) has been referred by a school district for enrollment 156.19 in an eligible program or a program pursuant to section 126.23; 156.20 or 156.21 (7) is a victim of physical or sexual abuse; or 156.22 (8) has experienced mental health problems; or 156.23 (9) has experienced homelessness sometime within six months 156.24 before requesting a transfer to an eligible program; or 156.25 (10) speaks English as a second language or has limited 156.26 English proficiency; or 156.27 (11) is eligible to receive extended school year revenue 156.28 under section 124.305; or 156.29 (12) has withdrawn from school or has been chronically 156.30 truant; or 156.31 (b) any person who is at least 21 years of age and who: 156.32 (1) has received fewer than 14 years of public or nonpublic 156.33 education, beginning at age 5; 156.34 (2) has not completed the requirements for a high school 156.35 diploma; and 156.36 (3) at the time of application, (i) is eligible for 157.1 reemployment insurance benefits or has exhausted the benefits, 157.2 (ii) is eligible for, or is receiving income maintenance and 157.3 support services, as defined in section 268.0111, subdivision 5, 157.4 or (iii) is eligible for services under the displaced homemaker 157.5 program, state wage-subsidy program, or any programs under the 157.6 federal Jobs Training Partnership Act or its successor. 157.7 Sec. 12. [TARGETED BREAKFAST GRANTS.] 157.8 Subdivision 1. [ESTABLISHMENT.] A grant program is 157.9 established to further explore the policy of providing 157.10 nutritious breakfasts to public elementary school children, 157.11 without regard to whether the children are eligible to receive 157.12 free or reduced price meals, so that they can learn effectively. 157.13 Subd. 2. [ELIGIBILITY.] An applicant for a grant must be 157.14 an elementary school that participates in the federal school 157.15 breakfast and lunch programs. For a school to receive a grant, 157.16 at least 33 percent of the lunches the school served to children 157.17 during the preceding school year must have been provided free or 157.18 at a reduced price. 157.19 Subd. 3. [APPLICATION PROCESS.] To obtain a grant to 157.20 receive reimbursement for providing breakfasts to all children, 157.21 whether or not the children are from low-income families and 157.22 eligible to receive free or reduced price meals, a public 157.23 elementary school must submit an application to the commissioner 157.24 of children, families, and learning in the form and manner the 157.25 commissioner prescribes. The application must describe how the 157.26 applicant will encourage all children in the school to 157.27 participate in the breakfast program. The applicant also must 157.28 demonstrate to the commissioner that the applicant will receive 157.29 a $1 local match of funding or in-kind contributions for every 157.30 $3 of state funding the applicant receives. The commissioner 157.31 may require additional information from the applicant. 157.32 Subd. 4. [GRANT AWARDS.] The commissioner shall award 157.33 grants to the four grant recipients under Laws 1994, chapter 157.34 647, article 8, section 35, and then on a first-come, 157.35 first-served basis to all other schools that meet the 157.36 requirements of subdivisions 2 and 3 until funding under this 158.1 section is expended. The commissioner shall determine the 158.2 amount of the grant using average statewide statistics and 158.3 individual school statistics adjusted for other state and 158.4 federal reimbursements. Grant recipients must use the proceeds 158.5 to provide breakfasts to school children every day school is in 158.6 session. 158.7 Sec. 13. [APPROPRIATIONS.] 158.8 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 158.9 LEARNING.] The sums indicated in this section are appropriated 158.10 from the general fund to the department of children, families, 158.11 and learning for the fiscal years designated. 158.12 Subd. 2. [ABATEMENT AID.] For abatement aid according to 158.13 Minnesota Statutes, section 124.214: 158.14 $13,661,000 ..... 1998 158.15 $13,612,000 ..... 1999 158.16 The 1998 appropriation includes $684,000 for 1997 and 158.17 $12,977,000 for 1998. 158.18 The 1999 appropriation includes $1,441,000 for 1998 and 158.19 $12,171,000 for 1999. 158.20 Subd. 3. [NONPUBLIC PUPIL AID.] For nonpublic pupil 158.21 education aid according to Minnesota Statutes, sections 123.79 158.22 and 123.931 to 123.947: 158.23 $9,430,000 ..... 1998 158.24 $9,688,000 ..... 1999 158.25 The 1998 appropriation includes $900,000 for 1997 and 158.26 $8,530,000 for 1998. 158.27 The 1999 appropriation includes $947,000 for 1998 and 158.28 $8,741,000 for 1999. 158.29 Subd. 4. [SCHOOL LUNCH AND FOOD STORAGE AID.] (a) For 158.30 school lunch aid according to Minnesota Statutes, section 158.31 124.646, and Code of Federal Regulations, title 7, section 158.32 210.17, and for food storage and transportation costs for United 158.33 States Department of Agriculture donated commodities; and for a 158.34 temporary transfer to the commodity processing revolving fund to 158.35 provide cash flow to permit schools and other recipients of 158.36 donated commodities to take advantage of volume processing rates 159.1 and for school milk aid according to Minnesota Statutes, section 159.2 124.648: 159.3 $8,754,000 ..... 1998 159.4 $8,754,000 ..... 1999 159.5 (b) Any unexpended balance remaining from the 159.6 appropriations in this subdivision shall be prorated among 159.7 participating schools based on the number of free, reduced, and 159.8 fully paid federally reimbursable student lunches served during 159.9 that school year. 159.10 (c) If the appropriation amount attributable to either year 159.11 is insufficient, the rate of payment for each fully paid student 159.12 lunch shall be reduced and the aid for that year shall be 159.13 prorated among participating schools so as not to exceed the 159.14 total authorized appropriation for that year. 159.15 (d) Any temporary transfer processed in accordance with 159.16 this subdivision to the commodity processing fund will be 159.17 returned by June 30 in each year so that school lunch aid and 159.18 food storage costs can be fully paid as scheduled. 159.19 (e) Not more than $800,000 of the amount appropriated each 159.20 year may be used for school milk aid. 159.21 (f) The commissioner may reduce other future aid and grant 159.22 payments to school districts and other organizations for the 159.23 costs of processing and storage of commodities used by the 159.24 school district or organization. 159.25 Subd. 5. [SUMMER FOOD SERVICE.] For summer food service: 159.26 $15,000 ..... 1998 159.27 $15,000 ..... 1999 159.28 Subd. 6. [SCHOOL BREAKFAST.] To operate the school 159.29 breakfast program according to Minnesota Statutes, sections 159.30 124.6469 and 124.6472: 159.31 $456,000 ..... 1998 159.32 $456,000 ..... 1999 159.33 If the appropriation amount attributable to either year is 159.34 insufficient, the rate of payment for each fully paid student 159.35 breakfast shall be reduced and the aid for that year shall be 159.36 prorated among participating schools so as not to exceed the 160.1 total authorized appropriation for that year. Any unexpected 160.2 balance remaining shall be used to subsidize the payments made 160.3 for school lunch aid per Minnesota Statutes, section 124.646. 160.4 Up to one percent of the program funding can be used by the 160.5 department of children, families, and learning for technical and 160.6 administrative assistance. 160.7 Subd. 7. [PSEO REPLACEMENT AID.] For PSEO replacement aid: 160.8 $12,000 ..... 1998 160.9 The 1998 appropriation includes $12,000 for 1997 and $-0- 160.10 for 1998. 160.11 Subd. 8. [EXTENDED INSTRUCTIONAL TIME REVENUE.] For the 160.12 purpose of funding the extended hours program under Minnesota 160.13 Statutes, section 124.305: 160.14 $25,800,000 ..... 1998 160.15 $25,800,000 ..... 1999 160.16 Any balance in the first year does not cancel but is 160.17 available in the second year. Of each year's appropriation, up 160.18 to $2,000,000 in fiscal year 1998 and up to $1,000,000 in fiscal 160.19 year 1999 is available for allocation under Minnesota Statutes, 160.20 section 124.305, subdivision 5. 160.21 Subd. 9. [SCHOOL BREAKFAST OUTREACH.] To initiate school 160.22 breakfast programs under Minnesota Statutes, section 124.6469, 160.23 at school sites not currently providing a school breakfast 160.24 program or at schools that initiated a school breakfast program 160.25 during the 1996-1997 school year: 160.26 $15,000 ..... 1998 160.27 $15,000 ..... 1999 160.28 Subd. 10. [SUMMER FOOD SERVICE REPLACEMENT AID.] For 160.29 summer food service replacement aid under Minnesota Statutes, 160.30 section 124.6475: 160.31 $150,000 ..... 1998 160.32 $150,000 ..... 1999 160.33 Subd. 11. [TARGETED BREAKFAST GRANTS.] For targeted 160.34 breakfast grants under section 12: 160.35 $500,000 ..... 1998 160.36 $500,000 ..... 1999 161.1 Subd. 12. [FAMILY CONNECTIONS AID.] For family connections 161.2 aid according to Minnesota Statutes, section 124.276: 161.3 $125,000 ..... 1998 161.4 $125,000 ..... 1999 161.5 Any balance in the first year does not cancel but is 161.6 available in the second year. 161.7 Sec. 14. [REPEALER.] 161.8 Minnesota Statutes 1996, section 124.177, is repealed. 161.9 ARTICLE 7 161.10 EDUCATION POLICY ISSUES 161.11 Section 1. Minnesota Statutes 1996, section 120.062, 161.12 subdivision 7, is amended to read: 161.13 Subd. 7. [BASIS FOR DECISIONS.] The school board must 161.14 adopt, by resolution, specific standards foracceptance161.15 accepting andrejection ofrejecting applications. Standards 161.16 may include the capacity of a program, class, grade level, or 161.17 school building or disciplinary proceeding during the current or 161.18 two preceding calendar years if the proceeding resulted in 161.19 expelling a secondary student who willfully engaged in dangerous 161.20 or violent behavior or the secondary school student was 161.21 convicted of or adjudicated for committing a felony. Standards 161.22 may not include previous academic achievement, athletic or other 161.23 extracurricular ability, disabling conditions, or proficiency in 161.24 the English language, or previous disciplinary proceedings. 161.25 Sec. 2. Minnesota Statutes 1996, section 120.101, 161.26 subdivision 5c, is amended to read: 161.27 Subd. 5c. [EDUCATION RECORDS.] (a) A school district from 161.28 which a student is transferring must transmit the student's 161.29 educational records, within ten business days of a request, to 161.30 the school district in which the student is enrolling. School 161.31 districts must make reasonable efforts to determine the school 161.32 district in which a transferring student is next enrolling in 161.33 order to comply with this subdivision. 161.34 (b) A school district that transmits a student's 161.35 educational records to another school district or other 161.36 educational entity to which the student is transferring must 162.1 include in the transmitted records information about 162.2 disciplinary action taken as a result of any incident in which 162.3 the student possessed or used a dangerous weapon. 162.4 Sec. 3. Minnesota Statutes 1996, section 120.17, 162.5 subdivision 3a, is amended to read: 162.6 Subd. 3a. [SCHOOL DISTRICT OBLIGATIONS.] Every district 162.7 shall ensure that: 162.8 (1) all students with disabilities are provided the special 162.9 instruction and services which are appropriate to their needs. 162.10 Where the individual education plan team has determined 162.11 appropriate goals and objectives based on the student's needs, 162.12 including the extent to which the student can be included in the 162.13 least restrictive environment, and where there are essentially 162.14 equivalent and effective instruction, related services, or 162.15 assistive technology devices available to meet the student's 162.16 needs, cost to the school district may be among the factors 162.17 considered by the team in choosing how to provide the 162.18 appropriate services, instruction, or devices that are to be 162.19 made part of the student's individual education plan. The 162.20 student's needs and the special education instruction and 162.21 services to be provided shall be agreed upon through the 162.22 development of an individual education plan. When proceeding 162.23 with the initial formal assessment of a student and determining 162.24 the least restrictive environment in which to initially place 162.25 the student, the individual education plan team shall consider 162.26 the student's ability to engage in conduct consistent with the 162.27 school's student discipline policy to the extent the policy is 162.28 consistent with the content of the student's individual 162.29 education plan. The plan shall address the student's need to 162.30 develop skills to live and work as independently as possible 162.31 within the community. By grade 9 or age 14, the plan shall 162.32 address the student's needs for transition from secondary 162.33 services to post-secondary education and training, employment, 162.34 community participation, recreation, and leisure and home 162.35 living. The plan must include a statement of the needed 162.36 transition services, including a statement of the interagency 163.1 responsibilities or linkages or both before secondary services 163.2 are concluded; 163.3 (2) children with a disability under age five and their 163.4 families are provided special instruction and services 163.5 appropriate to the child's level of functioning and needs; 163.6 (3) children with a disability and their parents or 163.7 guardians are guaranteed procedural safeguards and the right to 163.8 participate in decisions involving identification, assessment 163.9 including assistive technology assessment, and educational 163.10 placement of children with a disability; 163.11 (4) to the maximum extent appropriate, children with a 163.12 disability, including those in public or private institutions or 163.13 other care facilities, are educated with children who are not 163.14 disabled, and that special classes, separate schooling, or other 163.15 removal of children with a disability from the regular 163.16 educational environment occurs only when and to the extent that 163.17 the nature or severity of the disability is such that education 163.18 in regular classes with the use of supplementary services cannot 163.19 be achieved satisfactorily; 163.20 (5) in accordance with recognized professional standards, 163.21 testing and evaluation materials, and procedures utilized for 163.22 the purposes of classification and placement of children with a 163.23 disability are selected and administered so as not to be 163.24 racially or culturally discriminatory; and 163.25 (6) the rights of the child are protected when the parents 163.26 or guardians are not known or not available, or the child is a 163.27 ward of the state. 163.28 Sec. 4. Minnesota Statutes 1996, section 123.3514, 163.29 subdivision 4c, is amended to read: 163.30 Subd. 4c. [LIMIT ON PARTICIPATION.] A pupil who first 163.31 enrolls in grade 11 may not enroll in post-secondary courses 163.32 under this section for secondary credit for more than the 163.33 equivalent of two academic years. A pupil who first enrolls in 163.34 grade 12 may not enroll in post-secondary courses under this 163.35 section for secondary credit for more than the equivalent of one 163.36 academic year. If a pupil in grade 11 or 12 first enrolls in a 164.1 post-secondary course for secondary credit during the school 164.2 year, the time of participation shall be reduced 164.3 proportionately. If a pupil is in a learning year or other 164.4 year-round program and begins each grade in the summer session, 164.5 summer sessions shall not be counted against the time of 164.6 participation. A pupil who has graduated from high school 164.7 cannot participate in a program under this section. A pupil who 164.8 has completed course requirements for graduation but who has not 164.9 received a diploma may participate in the program under this 164.10 section. 164.11 Sec. 5. Minnesota Statutes 1996, section 123.3514, 164.12 subdivision 8, is amended to read: 164.13 Subd. 8. [TRANSPORTATION.] A parent or guardian of a pupil 164.14 enrolled in a course for secondary credit may apply to the 164.15 pupil's district of residence for reimbursement for transporting 164.16 the pupil between the secondary school in which the pupil is 164.17 enrolled or the pupil's home and the post-secondary institution 164.18 that the pupil attends.The commissioner shall establish164.19guidelines for providing state aid toDistrictstoshall 164.20 reimburse the parent or guardian for the necessary 164.21 transportation costs, which shall be based on financial164.22needwhen the family's or guardian's income is at or below the 164.23 poverty level, as determined by the federal government. The 164.24 reimbursementmay not exceedshall be the pupil's actual cost of 164.25 transportation or 15 cents per mile traveled, whichever is 164.26 less. Reimbursement may not be paid for more than 250 miles per 164.27 week. However, if the nearest post-secondary institution is 164.28 more than 25 miles from the pupil's resident secondary school, 164.29 the weekly reimbursement may not exceed the reimbursement rate 164.30 per mile times the actual distance between the secondary school 164.31 or the pupil's home and the nearest post-secondary institution 164.32 times ten. The state shall pay aid to the district according to 164.33the guidelines established underthis subdivision.Chapter 14164.34does not apply to the guidelines.164.35 Sec. 6. Minnesota Statutes 1996, section 124C.498, 164.36 subdivision 2, is amended to read: 165.1 Subd. 2. [APPROVAL AUTHORITY; APPLICATION FORMS.] To the 165.2 extent money is available, the commissioner of children, 165.3 families, and learning may approve projects from applications 165.4 submitted under this section. The grant money must be used only 165.5 to design, acquire, construct, remodel, improve, furnish, or 165.6 equip the building or site of a magnet school facility according 165.7 to contracts entered into within1524 months after the date on 165.8 which a grant is awarded. 165.9 Sec. 7. Minnesota Statutes 1996, section 125.12, 165.10 subdivision 14, is amended to read: 165.11 Subd. 14. [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 165.12 EXPUNGEMENT.] All evaluations and files generated within a 165.13 school district relating to each individual teacher shall be 165.14 available to each individual teacher upon written request. 165.15 Effective January 1, 1976, all evaluations and files, wherever 165.16 generated, relating to each individual teacher shall be 165.17 available to each individual teacher upon written request. The 165.18 teacher shall have the right to reproduce any of the contents of 165.19 the files at the teacher's expense and to submit for inclusion 165.20 in the file written information in response to any material 165.21 contained therein. 165.22 A school district may destroy the files as provided by law 165.23 and shall expunge from the teacher's file any material found to 165.24 befalse or substantiallyinaccurate through the grievance 165.25 procedure required pursuant to section 179A.20, subdivision 4; 165.26 provided, the grievance procedure promulgated by the director of 165.27 the bureau of mediation services, pursuant to section 179A.04, 165.28 subdivision 3, clause (h), shall apply to those principals and 165.29 supervisory employees not included in an appropriate unit as 165.30 defined in section 179A.03. Expungement proceedings shall be 165.31 commenced within the time period provided in the collective 165.32 bargaining agreement for the commencement of a grievance. If no 165.33 time period is provided in the bargaining agreement, the 165.34 expungement proceedings shall commence within 15 days after the 165.35 teacher has knowledge of the inclusion in the teacher's file of 165.36 the material the teacher seeks to have expunged. 166.1 Sec. 8. Minnesota Statutes 1996, section 126.77, 166.2 subdivision 1, is amended to read: 166.3 Subdivision 1. [VIOLENCE PREVENTION CURRICULUM.] (a) The 166.4 commissioner of children, families, and learning, in 166.5 consultation with the commissioners of health and human 166.6 services, state minority councils, battered women's programs, 166.7 sexual assault centers, representatives of religious 166.8 communities, and the assistant commissioner of the office of 166.9 drug policy and violence prevention, shall assist districts on 166.10 request in developing or implementing a violence prevention 166.11 program for students in kindergarten to grade 12 that can be 166.12 integrated into existing curriculum. The purpose of the program 166.13 is to help students learn how to resolve conflicts within their 166.14 families and communities in nonviolent, effective ways. 166.15 (b) Each district is encouraged to integrate into its 166.16 existing curriculum a program for violence prevention that 166.17 includes at least: 166.18 (1) a comprehensive, accurate, and age appropriate 166.19 curriculum on violence prevention, nonviolent conflict 166.20 resolution,andsexual, racial, and cultural harassment, and 166.21 student hazing that promotes equality, respect, understanding, 166.22 effective communication, individual responsibility, thoughtful 166.23 decision making, positive conflict resolution, useful coping 166.24 skills, critical thinking, listening and watching skills, and 166.25 personal safety; 166.26 (2) planning materials, guidelines, and other accurate 166.27 information on preventing physical and emotional violence, 166.28 identifying and reducing the incidence of sexual, racial, and 166.29 cultural harassment, and reducing child abuse and neglect; 166.30 (3) a special parent education component of early childhood 166.31 family education programs to prevent child abuse and neglect and 166.32 to promote positive parenting skills, giving priority to 166.33 services and outreach programs for at-risk families; 166.34 (4) involvement of parents and other community members, 166.35 including the clergy, business representatives, civic leaders, 166.36 local elected officials, law enforcement officials, and the 167.1 county attorney; 167.2 (5) collaboration with local community services, agencies, 167.3 and organizations that assist in violence intervention or 167.4 prevention, including family-based services, crisis services, 167.5 life management skills services, case coordination services, 167.6 mental health services, and early intervention services; 167.7 (6) collaboration among districts and SCs; 167.8 (7) targeting early adolescents for prevention efforts, 167.9 especially early adolescents whose personal circumstances may 167.10 lead to violent or harassing behavior; 167.11 (8) opportunities for teachers to receive in-service 167.12 training or attend other programs on strategies or curriculum 167.13 designed to assist students in intervening in or preventing 167.14 violence in school and at home; and 167.15 (9) administrative policies that reflect, and a staff that 167.16 models, nonviolent behaviors that do not display or condone 167.17 sexual, racial, or cultural harassment or student hazing. 167.18 (c) The department may provide assistance at a neutral site 167.19 to a nonpublic school participating in a district's program. 167.20 Sec. 9. [126.801] [SCHOOL USE POLICY FOR COMPUTERS.] 167.21 Subdivision 1. [MODEL POLICY.] The commissioner of 167.22 children, families, and learning shall develop and distribute a 167.23 model policy for school districts concerning appropriate usage 167.24 of the Internet with recommended protocols for staff and 167.25 students to follow in order to maximize the educational benefits 167.26 of on-line services. 167.27 Subd. 2. [PROTECTIVE SOFTWARE.] The commissioner of 167.28 children, families, and learning shall research, evaluate, and 167.29 make recommendations to school districts on computer software 167.30 products that are proven to filter, block, or otherwise prevent 167.31 the use of school computers for the transmission of any comment, 167.32 request, suggestion, proposal, image, or other communication 167.33 which is: 167.34 (1) obscene, indecent, or sexually explicit; or 167.35 (2) intended to promote or incite violence against other 167.36 living persons. 168.1 Subd. 3. [SCHOOL DISTRICTS.] Within one year of the 168.2 commissioner completing the requirements of subdivisions 1 and 168.3 2, each school district must adopt a policy on Internet usage. 168.4 Sec. 10. Minnesota Statutes 1996, section 127.27, 168.5 subdivision 10, is amended to read: 168.6 Subd. 10. [SUSPENSION.] "Suspension" means an actiontaken168.7 by the school administration, under rules promulgated by the 168.8 school board, prohibiting a pupil from attending school for a 168.9 period of no more than ten school days. If a suspension is 168.10 longer than five days, the suspending administrator must provide 168.11 the superintendent with a reason for the longer suspension. 168.12 This definition does not apply to dismissal from school for one 168.13 school day or less. Each suspension action shall include a 168.14 readmission plan. The readmission plan shall include, where 168.15 appropriate, a provision for implementing alternativeprograms168.16to be implementededucational services upon readmission. 168.17Suspension may not be consecutively imposedThe school 168.18 administration may not impose consecutive suspensions against 168.19 the same pupil for the same course of conduct, or incident of 168.20 misconduct, except where the pupil will create an immediate and 168.21 substantial danger to self or to surrounding persons or 168.22 property, or where the district is in the process of initiating 168.23 an expulsion, in which case the school administration may extend 168.24 the suspension up to 15 days.In no event shall suspension168.25exceed 15 school days, provided that anIn the case of a pupil 168.26 with a disability, a suspension may not exceed ten school days. 168.27 The school administration shall implement alternativeprogram168.28shall be implementededucational services to the extent that 168.29 suspension exceeds five days. A separate administrative 168.30 conference is required for each period of suspension. 168.31 Sec. 11. Minnesota Statutes 1996, section 127.282, is 168.32 amended to read: 168.33 127.282 [EXPULSION FOR POSSESSION OF FIREARM.] 168.34 (a) Notwithstanding the time limitation in section 127.27, 168.35 subdivision 5, a school board must expel for a period of at 168.36 least one calendar year a pupil who is determined to have 169.1 brought a firearm to school except the board may modify this 169.2 expulsion requirement for a pupil on a case-by-case basis. For 169.3 the purposes of this section, firearm is as defined in United 169.4 States Code, title 18, section 921. 169.5 (b) Notwithstanding chapter 13, a student's expulsion or 169.6 withdrawal or transfer from a school after an expulsion action 169.7 is initiated against the student for a weapons violation under 169.8 paragraph (a) may be disclosed by the school district initiating 169.9 the expulsion proceeding. Unless the information is otherwise 169.10 public, the disclosure may be made only to another school 169.11 district in connection with the possible admission of the 169.12 student to the other district. 169.13 Sec. 12. [127.4105] [INFORMATION ON TEACHER LIABILITY.] 169.14 A school board shall, at the beginning of each school year, 169.15 disseminate to all teachers employed in the district a written 169.16 statement informing the teachers of the school district's 169.17 insurance coverage for the teachers' criminal and civil 169.18 liability for disciplining a student and the extent of the 169.19 liability of the district's liability insurer, and the extent of 169.20 district tort liability provisions under chapter 466 for torts 169.21 that teachers might commit while acting within the scope of 169.22 their employment. 169.23 Sec. 13. [127.465] [HAZING POLICY.] 169.24 Subdivision 1. [DEFINITIONS.] (a) "Hazing" means 169.25 committing an act against a student, or coercing a student into 169.26 committing an act, that creates a substantial risk of harm to a 169.27 person in order for the student to be initiated into or 169.28 affiliated with a student organization. 169.29 (b) "Student organization" means a group, club, or 169.30 organization having students as its primary members or 169.31 participants. 169.32 Subd. 2. [MODEL POLICY.] The commissioner of children, 169.33 families, and learning shall maintain and make available to 169.34 school boards a model policy on student hazing that addresses 169.35 the requirements of subdivision 3. 169.36 Subd. 3. [SCHOOL BOARD POLICY.] Each school board shall 170.1 adopt a written policy governing student hazing. The policy 170.2 must apply to student behavior that occurs on or off school 170.3 property and during and after school hours. The policy must 170.4 include reporting procedures and disciplinary consequences for 170.5 violating the policy. Disciplinary consequences must be 170.6 sufficiently severe to deter violations and appropriately 170.7 discipline prohibited behavior. Disciplinary consequences must 170.8 conform with sections 127.27 to 127.39. Each school must 170.9 include the policy in the student handbook on school policies. 170.10 Sec. 14. Minnesota Statutes 1996, section 128C.02, 170.11 subdivision 2, is amended to read: 170.12 Subd. 2. [SEXUAL HARASSMENT AND VIOLENCE; HAZING.] The 170.13 board of the league shall adopt a policy, rules, penalties, and 170.14 recommendations addressing sexual harassment and sexual violence 170.15 and hazing toward and by participants in league activities. 170.16 Sec. 15. [CONSULTATION.] 170.17 The commissioner of children, families, and learning shall 170.18 consult with the Minnesota school board association in preparing 170.19 the model hazing policy under section 127.465. 170.20 Sec. 16. [RECOMMENDATIONS FOR ALTERNATIVE SCHOOL YEAR 170.21 CALENDARS.] 170.22 Subdivision 1. [WORKING GROUP RECOMMENDATIONS.] The 170.23 commissioner of children, families, and learning shall convene a 170.24 working group to consider alternative school year calendars, 170.25 including at least 45-15 plans, four-quarter plans, quinmester 170.26 plans, extended learning year plans, flexible all-year plans, 170.27 and four-day week plans, and recommend to the legislature those 170.28 alternative school year calendars that best allow school 170.29 districts to meet the educational needs of their students. The 170.30 working group must include one representative from each of the 170.31 following organizations: the Minnesota school boards 170.32 association; the Minnesota education association; the Minnesota 170.33 federation of teachers; the Minnesota association of school 170.34 administrators; the Minnesota association of secondary school 170.35 principals; the Minnesota elementary school principals' 170.36 association; the Minnesota association for pupil transportation; 171.1 the Minnesota association for supervision and curriculum; the 171.2 Minnesota congress of parents, teachers, and students; the 171.3 Minnesota state high school league; the Minnesota business 171.4 partnership; and the Minnesota restaurant, hotel, and resort 171.5 associations. By February 1, 1998, the commissioner shall 171.6 submit the group's recommendations concerning the alternative 171.7 school year calendars that best allow school districts to meet 171.8 the educational needs of their students to the chairs of the 171.9 education committees of the legislature. 171.10 Subd. 2. [ISSUE TO RESOLVE.] In recommending to the 171.11 legislature the alternative school year calendars that best 171.12 allow school districts to meet the educational needs of their 171.13 students, the working group must at least consider: 171.14 (1) how buildings and other facilities can be optimally 171.15 used during an entire year; 171.16 (2) what the optimal learning year schedule is of 171.17 elementary and secondary disabled students and staff in schools 171.18 and residential facilities; 171.19 (3) how a district divides its students among its 171.20 facilities to accommodate an alternative school year calendar; 171.21 (4) how a district accommodates an alternative school year 171.22 calendar in the context of the public employment labor relations 171.23 act; 171.24 (5) what parent involvement is required in establishing an 171.25 alternative school year calendar; 171.26 (6) how school staff is assigned in a district with fewer 171.27 than all facilities adopting an alternative school year 171.28 calendar; 171.29 (7) how teachers' contracting rights are affected by an 171.30 alternative school year calendar; 171.31 (8) what educational standards and requirements apply to a 171.32 district operating an alternative school year calendar; 171.33 (9) what adjustments of attendance and apportionments of 171.34 state aid are required; and 171.35 (10) how concerns of the Minnesota restaurant, hotel, and 171.36 resort associations can be addressed in an alternative school 172.1 year calendar. 172.2 Sec. 17. [GRANTS TO IMPLEMENT CONSTRUCTIVE SCHOOL 172.3 DISCIPLINE POLICIES.] 172.4 Subdivision 1. [POLICY.] The legislature acknowledges the 172.5 importance of teaching students in a regular classroom setting 172.6 where possible. Students in an educational setting should 172.7 expect to behave in a manner that is appropriate for learning. 172.8 When students misbehave, school discipline policies should 172.9 penalize students' misbehavior, with the ultimate goal of 172.10 returning students to their regular classrooms. Schools should 172.11 involve parents in collaborative efforts to alter students' 172.12 classroom misbehavior. Schools and parents should find ways to 172.13 ensure that students' misbehavior does not become chronic, 172.14 necessitating long-term intervention and the need for special 172.15 services. 172.16 Subd. 2. [ESTABLISHMENT.] A grant program for fiscal year 172.17 1998 is established to develop, implement, and evaluate school 172.18 discipline policies, consistent with the Pupil Fair Dismissal 172.19 Act under Minnesota Statutes, sections 127.26 to 127.39 and 172.20 sections 127.40 to 127.48. Discipline policies, developed under 172.21 this section, should be designed to enable students to 172.22 successfully return to the regular classroom setting after being 172.23 disciplined for misbehavior. Discipline policies should focus 172.24 on early intervention strategies that limit the need to provide 172.25 regular education students with additional special programs or 172.26 services. 172.27 Subd. 3. [ELIGIBILITY.] An applicant for a grant must be a 172.28 school site, a school district, a charter school, or a provider 172.29 of an alternative education program. To be eligible for a 172.30 grant, the grant applicant must meet all of the following 172.31 criteria: 172.32 (1) develop a plan to establish a school site mediation 172.33 board under Minnesota Statutes, sections 127.411 to 127.42, to 172.34 mediate issues relating to district or school site codes of 172.35 conduct that apply to students; 172.36 (2) include in the code of conduct a plan to remove from 173.1 the regular classroom setting those students who violate the 173.2 code; 173.3 (3) provide students who violate the code with an 173.4 alternative education setting within the school or program site; 173.5 and 173.6 (4) make the alternative education setting a constructive 173.7 experience by using instructional materials tied to educational 173.8 standards, placing students in an alternative setting outside 173.9 the normal school day, involving parents in effecting 173.10 discipline, or developing intervention techniques such as time 173.11 outs, among other alternatives. 173.12 Subd. 4. [APPLICATION PROCESS.] To obtain a grant to 173.13 implement constructive school discipline policies, a grant 173.14 applicant must submit an application to the commissioner of 173.15 children, families, and learning in the form and manner the 173.16 commissioner establishes. The application must describe how the 173.17 applicant will meet the eligibility criteria under subdivision 173.18 3. The commissioner may require the applicant to provide 173.19 additional information. 173.20 Subd. 5. [GRANT AWARDS.] The commissioner may award up to 173.21 five grants of up to $50,000. Grant recipients must be located 173.22 throughout the state and have diverse experiences with student 173.23 disciplinary matters. The amount of the grant shall be based on 173.24 the number of students the grant recipient anticipates will be 173.25 disciplined and on the alternative education settings the grant 173.26 recipient proposes to use. Grant recipients must use the grant 173.27 proceeds to accomplish the purposes of this section. 173.28 Subd. 6. [EVALUATION.] The commissioner shall evaluate the 173.29 grant sites and selected control sites to determine the impact 173.30 of the constructive discipline policy grant program on measures 173.31 of student behavior and performance, including at least, student 173.32 achievement and attendance, and the impact of the program on the 173.33 school site, the student body, the classroom, and the school 173.34 faculty. The evaluation must also address the financial impact 173.35 of the program on the district and the school site. Upon 173.36 implementing a student code of conduct consistent with this 174.1 section, the grant recipient must cooperate in evaluating the 174.2 impact of code policies. As a part of the evaluation process, 174.3 the grant recipient must document student and parent response to 174.4 code policies over at least a three-year period. The 174.5 commissioner shall compile for the education committees of the 174.6 legislature a progress report by February 1, 1999, and a final 174.7 report by February 1, 2001, on the effectiveness and impact of 174.8 discipline policies. 174.9 Sec. 18. [PARTNERS FOR QUALITY SCHOOL IMPROVEMENT PILOT 174.10 TRAINING PROGRAM.] 174.11 Subdivision 1. [ESTABLISHMENT.] The school improvement 174.12 training and performance pilot program is established to 174.13 accelerate school quality and performance improvement 174.14 initiatives that lead to improved student achievement in both 174.15 high-performing and under-performing schools. 174.16 Subd. 2. [ELIGIBILITY.] A school district is eligible to 174.17 apply for a grant to establish one or more school improvement 174.18 training and performance sites. The application and selection 174.19 process must be developed and implemented by the Minnesota 174.20 academic excellence foundation and reviewed by the commissioner 174.21 of children, families, and learning. Priority for participation 174.22 must be given to school districts in which: 174.23 (1) the district has received an educational performance 174.24 improvement grant under Laws 1994, chapter 647, article 7, 174.25 section 18, and has demonstrated improvement in student learning 174.26 as a result of the grant; 174.27 (2) one school or the district has completed training in a 174.28 statewide quality improvement initiative; 174.29 (3) the district has demonstrated accountability by 174.30 developing and communicating an agenda to increase student 174.31 learning; 174.32 (4) there are significant numbers of students with critical 174.33 learning needs and gaps in learning between these students and 174.34 other groups of students; and 174.35 (5) site-based management is being implemented. 174.36 Subd. 3. [PROGRAM SERVICES.] The Minnesota academic 175.1 excellence foundation must provide training and technical 175.2 assistance to selected districts to: 175.3 (1) create plans for the district-wide deployment of 175.4 quality improvement training to all staff; 175.5 (2) create a means for identifying and providing remedial, 175.6 interventive, or preventive assistance to schools in the 175.7 district, based upon the schools' performances against state and 175.8 local goals and standards; 175.9 (3) accelerate school performance and student learning in 175.10 high-performing and under-performing schools; and 175.11 (4) train quality program trainers at each site. 175.12 Subd. 4. [SCHOOL DISTRICT PARTICIPANTS.] Selected 175.13 districts must enter into a contract to achieve increases in 175.14 student learning, staff development and performance, and 175.15 administrative support services to schools within the district. 175.16 Additionally, each selected district must: 175.17 (1) plan and deploy quality improvement and other training 175.18 to all staff in the district; 175.19 (2) establish quality and performance goals and measure 175.20 results and report the achieved results at the selected school 175.21 sites; and 175.22 (3) assist in duplicating successful programs in other 175.23 districts by providing training to other school districts for a 175.24 period of up to four years, in collaboration with the Minnesota 175.25 academic excellence foundation. 175.26 Subd. 5. [REPORT.] The Minnesota academic excellence 175.27 foundation must report to the commissioner of children, 175.28 families, and learning on the progress of the project and 175.29 annually on the results of the project. 175.30 Sec. 19. [GRANT PROGRAM FOR VIOLENCE PREVENTION THROUGH 175.31 THE DEVELOPMENT OF PLAYS, WORKSHOPS, AND EDUCATIONAL RESOURCES.] 175.32 Subdivision 1. [GRANT PROGRAM.] The commissioner shall 175.33 administer a grant program to fund statewide programs to create 175.34 and develop theatrical plays, workshops, and educational 175.35 resources based on peer education models that promote increased 175.36 awareness and prevention of sexual abuse, interpersonal 176.1 violence, emotional violence, and sexual harassment. Programs 176.2 eligible for grants must use a combination of theater 176.3 professionals and prevention specialists in the delivery of the 176.4 service and use a peer education model that uses researched and 176.5 proven content in training youth to perform in the plays and 176.6 workshops. Programs must provide the source material, the 176.7 training program, develop the educational materials, and provide 176.8 technical assistance. 176.9 Subd. 2. [GRANT PROCEDURE.] Programs may apply for a grant 176.10 by submitting an application to the commissioner. The 176.11 commissioner may distribute grants to one or more programs 176.12 meeting the criteria described in subdivision 1. 176.13 Sec. 20. [CLASS SIZE PROJECT.] 176.14 A class size project is established in independent school 176.15 district No. 12, Centennial. The purpose of this project is to 176.16 establish that significantly lower class size and 176.17 instructor-to-learner ratios in a suburban community will result 176.18 in measurable achievements for students, staff, and parents. 176.19 Sec. 21. [INSTRUCTIONAL DAY CLARIFICATION.] 176.20 (a) This section applies to any school district employee 176.21 who was scheduled to work on January 16, 1997, did not work on 176.22 that day, and did not receive compensation for that day. 176.23 (b) Notwithstanding any law to the contrary, a school 176.24 district must either: (1) allow any school district employee 176.25 under paragraph (a) the opportunity to work on another day that 176.26 the school district designates and must compensate the employee 176.27 working on the designated day at the employee's normal rate of 176.28 pay; or (2) compensate any school district employee under 176.29 paragraph (a) for that day at the employee's normal rate of pay. 176.30 Sec. 22. [BEFORE LABOR DAY SCHOOL START.] 176.31 Subdivision 1. [LAKE PARK; AUDUBON.] Notwithstanding 176.32 Minnesota Statutes, section 126.12, subdivision 1, for the 176.33 1997-1998 school year, independent school district Nos. 24, Lake 176.34 Park, and 21, Audubon, may begin the elementary and secondary 176.35 school year on August 25, 1997, in order for independent school 176.36 district No. 24, Lake Park, to accommodate its building 177.1 renovation schedule at the end of that school year. 177.2 Subd. 2. [NEW PRAGUE.] Notwithstanding Minnesota Statutes, 177.3 section 126.12, subdivision 1, independent school district No. 177.4 721, New Prague, may begin the 1997-1998 school year prior to 177.5 Labor Day only by the number of days necessary to accommodate 177.6 the district building and remodeling project. 177.7 Subd. 3. [WAYZATA.] Notwithstanding Minnesota Statutes, 177.8 section 126.12, subdivision 1, independent school district No. 177.9 284, Wayzata, may begin the 1997-1998 school year prior to Labor 177.10 Day only by the number of days necessary to accommodate the 177.11 transition into the new senior high school building. 177.12 Subd. 4. [ISLE.] Notwithstanding Minnesota Statutes, 177.13 section 126.12, subdivision 1, for the 1997-1998 school year, 177.14 independent school district No. 473, Isle, may begin the 177.15 elementary and secondary school year on August 18, 1997, in 177.16 order for the school district to complete its conversion of an 177.17 existing elementary school to a K-12 facility before the 177.18 beginning of the 1998-1999 school year. 177.19 Subd. 5. [COLUMBIA HEIGHTS.] Notwithstanding Minnesota 177.20 Statutes, section 126.12, subdivision 1, independent school 177.21 district No. 13, Columbia Heights, may begin the school year 177.22 before Labor Day only by the number of days necessary to 177.23 accommodate the district building construction and remodeling 177.24 project. 177.25 Sec. 23. [FUND TRANSFERS.] 177.26 Subdivision 1. [HILL CITY.] (a) Notwithstanding Minnesota 177.27 Statutes, section 121.912 or 121.9121, before June 30, 1997, 177.28 independent school district No. 2, Hill City, may permanently 177.29 transfer up to $55,000 from its general fund to its debt 177.30 redemption fund for the purpose of repaying the principal and 177.31 any interest owed on its outstanding debt service loans. Any 177.32 amount transferred but not used to repay the debt service loans 177.33 must be applied to the district's outstanding capital loan 177.34 balance. 177.35 (b) The commissioner of children, families, and learning 177.36 shall recompute the general education fund balance reduction for 178.1 fiscal year 1997 for independent school district No. 2, Hill 178.2 City. For purposes of this reduction, the commissioner shall 178.3 lower the district's net unappropriated operating balance as of 178.4 June 30, 1996, by the amount that is transferred from the 178.5 general fund to the debt redemption fund under paragraph (a). 178.6 General education aid for fiscal year 1997 for independent 178.7 school district No. 2, Hill City, must be adjusted according to 178.8 this subdivision. 178.9 The general education levy attributable to fiscal year 1997 178.10 for independent school district No. 2, Hill City, must be 178.11 adjusted according to this subdivision. 178.12 Subd. 2. [FERGUS FALLS.] Notwithstanding Minnesota 178.13 Statutes, sections 121.912, 121.9121, and 475.61, subdivision 4, 178.14 on June 30, 1997, independent school district No. 544, Fergus 178.15 Falls, may permanently transfer up to $202,000 from its debt 178.16 redemption fund to its building construction fund without making 178.17 a levy reduction. 178.18 Subd. 3. [FOSSTON.] Notwithstanding Minnesota Statutes, 178.19 sections 121.912, 121.9121, and 475.61, subdivision 4, on or 178.20 before June 30, 1997, independent school district No. 601, 178.21 Fosston, may permanently transfer up to $105,000 from the debt 178.22 redemption fund to its building construction fund without making 178.23 a levy reduction. 178.24 Subd. 4. [MEDFORD.] Notwithstanding Minnesota Statutes, 178.25 sections 121.912 and 121.9121, independent school district No. 178.26 763, Medford, may permanently transfer up to a total of $200,000 178.27 by June 30, 1998, from reserve accounts in the general fund to 178.28 the unreserved general fund. The transfers may be made from 178.29 either the bus purchase account or from the reserve for 178.30 operating capital account. Transfers from the bus purchase 178.31 account may be made without making a levy reduction. 178.32 Subd. 5. [BELGRADE-BROOTEN-ELROSA.] Notwithstanding 178.33 Minnesota Statutes, sections 121.912 and 121.9121, on June 30, 178.34 1997, independent school district No. 2364, 178.35 Belgrade-Brooten-Elrosa, may permanently transfer up to $250,000 178.36 from the bus purchase account to its general fund. 179.1 Sec. 24. [TEACHER CONTRACTS; ARBITRATION.] 179.2 Notwithstanding any law to the contrary, if the school 179.3 board and the exclusive representative of teachers employed by 179.4 independent school district No. 821, Menagha, have not agreed on 179.5 an employment contract by July 1, 1997, and have not agreed to 179.6 submit the matter to interest arbitration, the parties must 179.7 submit the matter to the commissioner of mediation services. 179.8 Each party must submit to the commissioner of mediation services 179.9 its final position on all issues. The arbitrator must consider 179.10 the financial condition of the school district and select the 179.11 total package of one side or the other in its entirety. 179.12 Sec. 25. [APPROPRIATIONS.] 179.13 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES AND 179.14 LEARNING.] The sums indicated in this section are appropriated 179.15 from the general fund to the department of children, families, 179.16 and learning for the fiscal years designated. 179.17 Subd. 2. [PARTNERS FOR QUALITY SCHOOL IMPROVEMENT.] For 179.18 the school improvement pilot training program: 179.19 $750,000 ..... 1998 179.20 Up to $30,000 may be used by the Minnesota academic 179.21 excellence foundation to deliver training, coaching, technical 179.22 assistance, and other services to selected districts. Contracts 179.23 shall be awarded to at least six districts, two each to rural, 179.24 suburban, and urban school districts. Any portion of the 179.25 appropriation not expended in the first year shall not cancel 179.26 but shall be available until June 30, 1999. 179.27 Subd. 3. [PREVENTING VIOLENCE THROUGH PLAYS AND 179.28 WORKSHOPS.] For administering the grant program for preventing 179.29 violence through developing plays, workshops, and educational 179.30 resources: 179.31 $75,000 ..... 1998 179.32 $75,000 ..... 1999 179.33 Subd. 4. [CLASS SIZE PROJECT.] For a grant to independent 179.34 school district No. 12, Centennial, for the class size project: 179.35 $180,000 ..... 1998 179.36 This appropriation is available until June 30, 1999. 180.1 Subd. 5. [MODEL SCHOOL FOR CHRONIC TRUANTS.] For the model 180.2 school for chronic truants located in the law enforcement center 180.3 in Mankato: 180.4 $40,000 ..... 1998 180.5 $40,000 ..... 1999 180.6 Subd. 6. [AQUILA COMMUNITY TOGETHER PROJECT.] For a grant 180.7 to independent school district No. 283, St. Louis Park, for the 180.8 Aquila community together project: 180.9 $30,000 ..... 1998 180.10 $30,000 ..... 1999 180.11 This appropriation must be matched from nonstate sources. 180.12 Any balance in the first year does not cancel but is 180.13 available in the second year. 180.14 Subd. 7. [MINNESOTA INTERNATIONAL CENTER.] For the 180.15 Minnesota International Center to encourage and foster contacts 180.16 between Minnesota school children, their teachers, and people 180.17 from other nations through international classroom connection: 180.18 $40,000 ..... 1998 180.19 $40,000 ..... 1999 180.20 Subd. 8. [COMMUNITY HEALTH CENTER.] For independent school 180.21 district No. 99, Esko, to develop and operate a community health 180.22 and physical fitness center offering district residents programs 180.23 in community health and fitness, athletic training services, and 180.24 physical therapy: 180.25 $30,000 ..... 1998 180.26 This appropriation is contingent upon the school district 180.27 obtaining a $30,000 in-kind contribution of physical fitness 180.28 equipment from a private nonprofit source that is made 180.29 permanently available to the community health and physical 180.30 fitness center. 180.31 Subd. 9. [PROJECT PROTECT.] For a grant to the Grant 180.32 Hussey Foundation for implementing of Project Protect: 180.33 $50,000 ..... 1998 180.34 This appropriation is available until June 30, 1999. 180.35 Subd. 10. [CONSTRUCTIVE SCHOOL DISCIPLINE POLICIES.] For 180.36 grants to develop, implement, and evaluate school discipline 181.1 policies: 181.2 $250,000 ..... 1998 181.3 Grant recipients may expend grant proceeds over a 181.4 three-year period. Of this amount, $13,500 is for performing an 181.5 evaluation. 181.6 Sec. 26. [EFFECTIVE DATES.] 181.7 (a) Section 13 is effective January 1, 1998. 181.8 (b) Sections 16 and 21 to 23 are effective the day 181.9 following final enactment. 181.10 ARTICLE 8 181.11 LIBRARIES 181.12 Section 1. Minnesota Statutes 1996, section 134.155, 181.13 subdivision 2, is amended to read: 181.14 Subd. 2. [GRANTS.] The commissioner of children, families, 181.15 and learning, in consultation with the multicultural advisory 181.16 committee established in section 126.82, shall award grants for 181.17 professional development programs to recruit and educate people 181.18 of color in the field of library science or information 181.19 management. Grant applicants must be a public library 181.20 jurisdiction with a growing minority population working in 181.21 collaboration with an accredited institution of higher education 181.22 with a library education programin the state of Minnesota. 181.23 Sec. 2. Minnesota Statutes 1996, section 134.155, 181.24 subdivision 3, is amended to read: 181.25 Subd. 3. [PROGRAM REQUIREMENTS.] (a) A grant recipient 181.26 shall recruit people of color to be library staff in public 181.27 libraries and provide support in linking program participants 181.28 with jobs in the recipient's library jurisdiction. 181.29 (b) A grant recipient shall establish an advisory council 181.30 composed of representatives of communities of color. 181.31 (c) A grant recipient, with the assistance of the advisory 181.32 council, may recruit high school students, undergraduate 181.33 students or other persons; support them through the higher 181.34 education application and admission process; advise them while 181.35 enrolled; and link them with support resources in the college or 181.36 university and the community. 182.1 (d) A grant recipient shall award stipends to people of 182.2 color enrolled in a library education program to help cover the 182.3 costs of tuition, student fees, supplies, and books. Stipend 182.4 awards must be based upon a student's financial need and 182.5 students must apply for any additional financial aid for which 182.6 they are eligible to supplement this program. No more than ten 182.7 percent of the grant may be used for costs of administering the 182.8 program. Students must agree to work in the grantee library 182.9 jurisdiction for at least two years after graduation if the 182.10 student acquires a master's degree and at least three years 182.11 after graduation if the student acquires both a bachelor's and a 182.12 master's degree while participating in the program. If no 182.13 full-time position is available in the library jurisdiction, the 182.14 student may fulfill the work requirement in another Minnesota 182.15publiclibrary. 182.16 (e) The commissioner of children, families, and learning 182.17 shall consider the following criteria in awarding grants: 182.18 (1) whether the program is likely to increase the 182.19 recruitment and retention of persons of color in librarianship; 182.20 (2) whether grant recipients will establish or have a 182.21 mentoring program for persons of color; and 182.22 (3) whether grant recipients will provide a library 182.23 internship for persons of color while participating in this 182.24 program. 182.25 Sec. 3. Minnesota Statutes 1996, section 134.34, 182.26 subdivision 4, is amended to read: 182.27 Subd. 4. A regional library basic system support grant 182.28 shall not be made to a regional public library system for a 182.29 participating city or county which decreases the dollar amount 182.30 provided for support for operating purposes of public library 182.31 service below the amount provided by it for the second preceding 182.32 year. This subdivision shall not apply to participating cities 182.33 or counties where the adjusted net tax capacity of that city or 182.34 county has decreased, if the dollar amount of the reduction in 182.35 support is not greater than the dollar amount by which support 182.36 would be decreased if the reduction in support were made in 183.1 direct proportion to the decrease in adjusted net tax capacity. 183.2 Sec. 4. [LIBRARY PILOT PROJECT.] 183.3 Subdivision 1. [ESTABLISHMENT.] Notwithstanding law to the 183.4 contrary and subject to approvals in subdivision 2, a public 183.5 library may operate as a pilot project jointly with the school 183.6 library at Nashwauk-Keewatin high school, located in the city of 183.7 Nashwauk. The public library is established to serve persons 183.8 within the boundaries of independent school district No. 319, 183.9 except the city of Keewatin. 183.10 Subd. 2. [APPROVALS.] Operation of the public library is 183.11 contingent upon a resolution approved by the governing bodies of 183.12 cities, towns, and unorganized townships within the geographical 183.13 boundaries of independent school district No. 319, except for 183.14 the city of Keewatin. For the purposes of this subdivision, the 183.15 Itasca county board is designated as the governing body for the 183.16 unorganized townships. 183.17 Subd. 3. [BOARD; APPOINTMENTS.] The resolution in 183.18 subdivision 2 shall provide for a library board of five members 183.19 as follows: two members appointed by the school board of 183.20 independent school district No. 319, one member appointed by 183.21 each town board located within independent school district No. 183.22 319 boundaries, one member appointed by the council of the city 183.23 of Nashwauk, and one member appointed by the Itasca county board 183.24 to represent the unorganized towns within the school district 183.25 territory. 183.26 Subd. 4. [BOARD TERMS; COMPENSATION.] The library board 183.27 members shall serve for the term of the pilot program. An 183.28 appointing authority may remove for misconduct or neglect any 183.29 member it has appointed to the board and may replace that member 183.30 by appointment. Board members shall receive no compensation for 183.31 their services but may be reimbursed for actual and necessary 183.32 travel expenses incurred in the discharge of library board 183.33 duties and activities. 183.34 Subd. 5. [FUNDING.] For taxes payable in 1998 and 1999 183.35 only, the library board may levy a tax in an amount up to 183.36 $25,000 annually on property located within the boundaries of 184.1 independent school district No. 319, except the city of 184.2 Keewatin. The Itasca county auditor shall collect the tax and 184.3 distribute it to the library board. The money may be used for 184.4 library staff and for the purchase of library materials, 184.5 including computer software. The levy must also fund the amount 184.6 necessary to receive bookmobile services from the Arrowhead 184.7 regional library system. For taxes payable in 1998 and 1999 184.8 only, the county may not levy under Minnesota Statutes, section 184.9 134.07, for the areas described in this section. 184.10 Subd. 6. [BUILDING.] The school district shall provide the 184.11 physical space and costs associated with operating the library 184.12 including, but not limited to, heat, light, telephone service, 184.13 and maintenance. 184.14 Subd. 7. [ORGANIZATION.] Immediately after appointment, 184.15 the library board shall organize by electing one of its number 184.16 as president and one as secretary, and it may appoint other 184.17 officers it finds necessary. 184.18 Subd. 8. [DUTIES.] The library board shall adopt bylaws 184.19 and regulations for the library and for the conduct of its 184.20 business as may be expedient and conformable to law. It shall 184.21 have exclusive control of the expenditure of all money collected 184.22 for it. The library board shall appoint a qualified library 184.23 director and other staff, establish the compensation of 184.24 employees, and remove any of them for cause. The library board 184.25 may contract with the school board, the regional library board, 184.26 or the city in which the library is located to provide 184.27 personnel, fiscal, or administrative services. The contract 184.28 shall state the personnel, fiscal, and administrative services 184.29 and payments to be provided by each party. 184.30 Subd. 9. [CRITERIA.] The library shall meet all 184.31 requirements in statutes and rules applicable to public 184.32 libraries and school media centers. A media supervisor licensed 184.33 by the board of teaching may be the director of the library. 184.34 Public parking, restrooms, drinking water, and other necessities 184.35 shall be easily accessible to library patrons. 184.36 Subd. 10. [REPORT.] The library board shall report to the 185.1 department of children, families, and learning by February 1, 185.2 1999, about the costs of providing the library service and the 185.3 number of patrons served. 185.4 Subd. 11. [EXPIRATION.] This section expires January 31, 185.5 2000. 185.6 Sec. 5. [APPROPRIATIONS.] 185.7 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 185.8 LEARNING.] The sums indicated in this section are appropriated 185.9 from the general fund to the department of children, families, 185.10 and learning for the fiscal years designated. 185.11 Subd. 2. [BASIC SUPPORT GRANTS.] For basic support grants 185.12 according to Minnesota Statutes, sections 134.32 to 134.35: 185.13 $10,069,000 ..... 1998 185.14 $10,319,000 ..... 1999 185.15 The 1998 appropriation includes $781,000 for 1997 and 185.16 $9,288,000 for 1998. 185.17 The 1999 appropriation includes $1,032,000 for 1998 and 185.18 $9,287,000 for 1999. 185.19 Subd. 3. [LIBRARIANS OF COLOR.] For the librarians of 185.20 color program according to Minnesota Statutes, section 134.155: 185.21 $55,000 ..... 1998 185.22 $55,000 ..... 1999 185.23 Any balance in the first year does not cancel but is 185.24 available in the second year. 185.25 Subd. 4. [CHILDREN'S LIBRARY SERVICES GRANTS.] For grants 185.26 for collaborative programs to strengthen library services to 185.27 children, young people, and their families: 185.28 $100,000 ..... 1998 185.29 $100,000 ..... 1999 185.30 Any balance in the first year does not cancel but is 185.31 available in the second year. 185.32 Subd. 5. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 185.33 grants according to Minnesota Statutes, sections 134.353 and 185.34 134.354, to multicounty, multitype library systems: 185.35 $865,000 ..... 1998 185.36 $903,000 ..... 1999 186.1 The 1998 appropriation includes $52,000 for 1997 and 186.2 $813,000 for 1998. 186.3 The 1999 appropriation includes $90,000 for 1998 and 186.4 $813,000 for 1999. 186.5 Sec. 6. [REPEALER.] 186.6 Minnesota Statutes 1996, section 134.34, subdivision 4a, is 186.7 repealed. 186.8 Sec. 7. [EFFECTIVE DATE.] 186.9 Section 4 is effective in the territory located within 186.10 independent school district No. 319, except Keewatin, the day 186.11 after compliance with Minnesota Statutes, section 645.021, 186.12 subdivision 3, by the last of all the governing bodies for the 186.13 cities, towns, and unorganized townships. For the unorganized 186.14 townships, the governing body is the Itasca county board. 186.15 ARTICLE 9 186.16 TECHNOLOGY 186.17 Section 1. Minnesota Statutes 1996, section 124.91, 186.18 subdivision 5, is amended to read: 186.19 Subd. 5. [INTERACTIVE TELEVISION.] (a) A school district 186.20 with its central administrative office located within economic 186.21 development region one, two, three, four, five, six, seven, 186.22 eight, nine, and ten may apply to the commissioner of children, 186.23 families, and learning for ITV revenue up to the greater of .5 186.24 percent of the adjusted net tax capacity of the district or 186.25 $25,000for. Eligible interactive television expenditures 186.26 include the construction, maintenance, and lease costs of an 186.27 interactive television system for instructional purposes. An 186.28 eligible school district that has completed the construction of 186.29 its interactive television system may also purchase computer 186.30 hardware and software used primarily for instructional purposes 186.31 and access to the Internet provided that its total expenditures 186.32 for interactive television maintenance and lease costs and for 186.33 computer hardware and software under this subdivision do not 186.34 exceed its interactive television revenue for fiscal year 1998. 186.35 The approval by the commissioner of children, families, and 186.36 learning and the application procedures set forth in subdivision 187.1 1 shall apply to the revenue in this subdivision. In granting 187.2 the approval, the commissioner must consider whether the 187.3 district is maximizing efficiency through peak use and off-peak 187.4 use pricing structures. 187.5 (b) To obtain ITV revenue, a district may levy an amount 187.6 not to exceed the district's ITV revenue times the lesser of one 187.7 or the ratio of: 187.8 (1) the quotient derived by dividing the adjusted net tax 187.9 capacity of the district for the year before the year the levy 187.10 is certified by the actual pupil units in the district for the 187.11 year to which the levy is attributable; to 187.12 (2) 100 percent of the equalizing factor as defined in 187.13 section 124A.02, subdivision 8, for the year to which the levy 187.14 is attributable. 187.15 (c) A district's ITV aid is the difference between its ITV 187.16 revenue and the ITV levy. 187.17 (d) The revenue in the first year after reorganization for 187.18 a district that has reorganized under section 122.22, 122.23, or 187.19 122.241 to 122.247 shall be the greater of: 187.20 (1) the revenue computed for the reorganized district under 187.21 paragraph (a), or 187.22 (2)(i) for two districts that reorganized, 75 percent of 187.23 the revenue computed as if the districts involved in the 187.24 reorganization were separate, or 187.25 (ii) for three or more districts that reorganized, 50 187.26 percent of the revenue computed as if the districts involved in 187.27 the reorganization were separate. 187.28 (e) The revenue in paragraph (d) is increased by the 187.29 difference between the initial revenue and ITV lease costs for 187.30 leases that had been entered into by the preexisting districts 187.31 on the effective date of the consolidation or combination and 187.32 with a term not exceeding ten years. This increased revenue is 187.33 only available for the remaining term of the lease. However, in 187.34 no case shall the revenue exceed the amount available had the 187.35 preexisting districts received revenue separately. 187.36 Sec. 2. [124.98] [TECHNOLOGY PLAN.] 188.1 A district must submit a technology plan to the 188.2 commissioner of children, families, and learning. The 188.3 technology plan must include school building detail and provide 188.4 the following: 188.5 (1) a description of the computer knowledge and skills that 188.6 will be taught to all pupils; 188.7 (2) an explanation of how the school will make technology 188.8 integral to curriculum, instruction, and assessment, helping 188.9 teachers to individualize the learning process and integrate and 188.10 administer the graduation standards; 188.11 (3) a description of the academic content and skills that 188.12 will be taught using electronic technology; 188.13 (4) an inventory of existing hardware, software, and 188.14 connectivity; 188.15 (5) a list of the hardware and software investment plans; 188.16 (6) a description of the role of private businesses, 188.17 post-secondary education institutions, parents, the community, 188.18 and other interested parties in developing and supporting the 188.19 plan; 188.20 (7) an explanation of how the school will work 188.21 collaboratively with the private sector libraries and other 188.22 public agencies and institutions of higher education to design, 188.23 develop, and distribute interactive multimedia instructional 188.24 materials over local- and wide-area networks, including the 188.25 learning network and the Internet; 188.26 (8) an inventory of staff technology skills; 188.27 (9) objectives and plans for ongoing staff training to 188.28 increase and integrate the use of technology into the classroom; 188.29 (10) a plan for the accessibility needs of special 188.30 students; and 188.31 (11) plans for ongoing system support and development. 188.32 The commissioner shall review the technology plan and 188.33 determine that it complies with the goal of statewide 188.34 interoperability of technology investments. A district must 188.35 post its technology plan on the Internet so that it is 188.36 accessible to other school districts. 189.1 Sec. 3. Laws 1995, First Special Session chapter 3, 189.2 article 12, section 7, subdivision 1, is amended to read: 189.3 Subdivision 1. [STATE COUNCIL MEMBERSHIP.] The membership 189.4 of the Minnesota education telecommunications council 189.5 established in Laws 1993, First Special Session chapter 2, is 189.6 expanded to include representatives of elementary and secondary 189.7 education. The membership shall consist of three 189.8 representatives from the University of Minnesota; three 189.9 representatives of the board of trustees for Minnesota state 189.10 colleges and universities; one representative of the higher 189.11 education services offices; one representative appointed by the 189.12 private college council; eight representatives selected by the 189.13 commissioner ofeducationchildren, families, and learning, at 189.14 least one of which must come from each of the six higher 189.15 education telecommunication regions; a representative from the 189.16 information policy office;one membertwo members each from the 189.17 senate and the house of representatives selected by the 189.18 subcommittee on committees of the committee on rules and 189.19 administration of the senate and the speaker of the house, one 189.20 member from each body must be a member of the minority party; 189.21 and three representatives of libraries, one representing 189.22 regional public libraries, one representing multitype libraries, 189.23 and one representing community libraries, selected by the 189.24 governor. The council shall: 189.25 (1) develop a statewide vision and plans for the use of 189.26 distance learning technologies and provide leadership in 189.27 implementing the use of such technologies; 189.28 (2) recommend to the commissioner and the legislature by 189.29 December 15, 1996, a plan for long-term governance and a 189.30 proposed structure for statewide and regional 189.31 telecommunications; 189.32 (3) recommend educational policy relating to 189.33 telecommunications; 189.34 (4) determine priorities for use; 189.35 (5) oversee coordination of networks for post-secondary 189.36 campuses, K-12 education, and regional and community libraries; 190.1 (6) review application for telecommunications access grants 190.2 under Minnesota Statutes, section 124C.74 and recommend to the 190.3 department grants for funding;and190.4 (7) determine priorities for grant funding proposals; 190.5 (8) establish technical standards for all Minnesota schools 190.6 and libraries to ensure interoperability of hardware, software, 190.7 and telecommunications which shall be compatible with national 190.8 and international standards and which allow an open architecture 190.9 of computer systems and technology systems to be considered and 190.10 facilitate the communication of information and data among 190.11 public sector agencies and jurisdictions, private sector 190.12 organizations, and the general public; and 190.13 (9) develop technical standards for the operation and 190.14 maintenance of all Minnesota interactive television cooperatives. 190.15 The council shall consult with representatives of the 190.16 telecommunication industry in implementing this section. 190.17 Sec. 4. Laws 1996, chapter 412, article 12, section 8, is 190.18 amended to read: 190.19 Sec. 8. [TECHNOLOGY; TECHNICAL ASSISTANCE.] 190.20 The commissioner of the department of children, families, 190.21 and learning shall work with interested and involved 190.22 organizations including, but not limited to, representatives of 190.23 school districts, service cooperatives, TIES, education 190.24 districts, higher education institutions, public libraries, and 190.25 other government agencies to develop a technology planning guide 190.26 for school districts. The department must distribute the guides 190.27 to school districts and hold regional meetings to discuss the 190.28 planning process. In making technology-related funding 190.29 decisions, the commissioner may consider a school district's 190.30 technology planin making technology-related funding190.31decisionsand the degree to which it meets the technical 190.32 standards established by the Minnesota education 190.33 telecommunication council under Laws 1995, First Special Session 190.34 chapter 3, article 12, section 7. 190.35 Sec. 5. Laws 1996, chapter 412, article 12, section 11, is 190.36 amended to read: 191.1 Sec. 11. [COOPERATIVE PURCHASING.] 191.2 The department of children, families, and learning shall 191.3 work with the department of administration to make available to 191.4 public libraries, public and nonpublic schools, political 191.5 subdivisions and state agencies, state level contracts from 191.6 multiple sources, including manufacturers and software 191.7 publishers, for the purchase or lease of instructional and 191.8 administrative software, computers, video, and network hardware. 191.9 Notwithstanding section 471.345, public and nonpublic schools, 191.10 public libraries, and political subdivisions may participate 191.11 inthe contractsa negotiated or a sealed bid contract legally 191.12 entered into by the state of Minnesota, if it meets their 191.13 technology purchasing needs. 191.14 Sec. 6. [TECHNOLOGY GRANT AWARD.] 191.15 The commissioner shall award a one-time technology grant to 191.16 school districts for any purpose that is consistent with the 191.17 district's technology plan under section 2. The commissioner 191.18 may establish criteria for awarding grants under this section. 191.19 A school district is eligible for a grant that is equal to the 191.20 greater of: 191.21 (1) $30 per fund balance pupil unit; or 191.22 (2) the lesser of $25,000 or $80 per fund balance pupil 191.23 unit. 191.24 Sec. 7. [COMPETITIVE TECHNOLOGY INVESTMENT GRANTS.] 191.25 By August 15, 1997, the department shall establish 191.26 guidelines and an application process to make technology grants 191.27 to districts that show demonstrated need in their technology 191.28 plan. Districts must use the money to provide technology 191.29 investments at school sites, adult basic education sites, or at 191.30 the residential academies consistent with the district's 191.31 technology plan under section 2. 191.32 Eligible applicants must, at a minimum, describe how the 191.33 proposed project is consistent with the district's technology 191.34 plan, identify the specific needs that the project will address, 191.35 define the project's expected outcomes, and provide the source, 191.36 type, and amounts of all matching funds. To be eligible for a 192.1 technology investment grant, a school district must: 192.2 (1) have each dollar of grant money matched by at least $1 192.3 of school district money, nonstate or nonschool district money, 192.4 or in-kind contributions; and 192.5 (2) maintain any ongoing costs of support for the 192.6 technology project after the initial funding under the grant 192.7 program. Districts may count toward their match any eligible 192.8 expenditures made from July 1, 1996. 192.9 Sec. 8. [LEARNING RESOURCE NETWORK.] 192.10 The commissioner shall contract with multiple vendors to 192.11 develop a learning resource network that expands the electronic 192.12 curriculum library under Laws 1996, chapter 412, article 12, 192.13 section 15, subdivision 4, paragraph (a), and to support the 192.14 statewide implementation of the graduation standards. 192.15 The learning resource network must be made available to 192.16 public schools over the learning network established through 192.17 telecommunication access grants under Minnesota Statutes, 192.18 section 124C.74. Products and services available on the 192.19 learning resource network must be integrated and provide methods 192.20 to align curriculum with the graduation standards, and to assist 192.21 teachers in curriculum delivery and integration, student 192.22 assessment, and classroom recordkeeping. The commissioner shall 192.23 also identify ways to make the learning resource network 192.24 available to students and parents to enhance the learning 192.25 experience. 192.26 The commissioner shall consult with representatives from 192.27 the public and private sector in the development, use, and 192.28 operation of the learning resource network. The commissioner, 192.29 as part of the learning network, shall compile a list of vendors 192.30 of software that can be used to support implementation of the 192.31 graduation standards. The commissioner shall also identify 192.32 district-initiated projects and facilitate collaboration between 192.33 districts to develop and adapt electronic teaching and 192.34 administering tools. 192.35 Sec. 9. [GRANTS TO ANALYZE THE NUTRITIONAL COMPONENTS OF 192.36 SCHOOL MEALS.] 193.1 A grant program for fiscal year 1998 is established to 193.2 allow school districts to purchase a computer, monitor, printer, 193.3 or software to analyze the nutritional components of school 193.4 meals, ensure districts' compliance with federal dietary 193.5 guidelines applicable to school meals, and improve districts' 193.6 management of meal costs, meal program tracking, and government 193.7 reporting of meals served. To obtain a grant, a district must 193.8 submit an application to the commissioner of children, families, 193.9 and learning in the form and manner the commissioner 193.10 prescribes. The applicant, in the application, must describe: 193.11 (1) the computer hardware and software the applicant 193.12 requires to comply with the terms of the grant program; 193.13 (2) how the applicant will analyze the nutritional 193.14 components of school meals; 193.15 (3) how the applicant will use the analysis to ensure its 193.16 compliance with federal dietary guidelines applicable to school 193.17 meals; 193.18 (4) how the applicant will improve its management of meal 193.19 costs, meal program tracking, and government reporting of meals; 193.20 and 193.21 (5) the source of a $1 local match of funding or in-kind 193.22 contributions the applicant will receive for every $2 of state 193.23 funding the applicant receives. 193.24 The commissioner shall determine the amount of each grant 193.25 based upon the demonstrated needs of the applicant up to a 193.26 maximum of $2,000 per grant. The commissioner shall award 193.27 grants on a first-come, first-served basis to all school 193.28 districts that meet the requirements of this section until 193.29 funding under this section is expended. 193.30 Sec. 10. [OPEN ENROLLMENT TECHNOLOGY PROJECT.] 193.31 The commissioner of children, families, and learning shall 193.32 establish an open enrollment year-round project which 193.33 demonstrates the use of technology as the primary instructional 193.34 delivery system for elementary and secondary students. The 193.35 purposes of this program include: 193.36 (1) to allow for open enrollment of students via 194.1 technology; 194.2 (2) to utilize on-line education resources as an 194.3 alternative to the traditional classroom setting; 194.4 (3) to provide alternative instructional tools for home 194.5 school families; 194.6 (4) to implement a variety of electronic curriculum 194.7 packages which support distance learning; 194.8 (5) to support a performance-based system of achievement; 194.9 (6) to use individual education learning plans to prescribe 194.10 learning activities and track student performance in an open 194.11 enrollment setting; 194.12 (7) to evaluate technology as a distance education tool, 194.13 disseminate information on the project, and report on the 194.14 effectiveness of technology as a means of open enrollment; and 194.15 (8) to advance opportunities for year-round learning. 194.16 Sec. 11. [LIBRARY SITE TECHNOLOGY GRANTS.] 194.17 Subdivision 1. [ESTABLISHMENT; PURPOSE.] A matching grant 194.18 program is established to fund library site technology grants. 194.19 The grants are available to public or school library sites or to 194.20 a partnership of library sites. Recipients shall use grant 194.21 proceeds for technology projects that are consistent with 194.22 technology plans and the LDS/MINITEX Joint Standards and 194.23 Guidelines for Automated Library Systems. The grants shall fund 194.24 projects to expand and integrate technology into library 194.25 operations and increase public access to technology by: 194.26 (1) converting school media center bibliographic records 194.27 into a standard format; 194.28 (2) loading school library site media records into 194.29 regional, public, or multicounty, multitype library systems or 194.30 other appropriate library networks; 194.31 (3) upgrading and increasing database development; and 194.32 (4) improving public library staff use of networked library 194.33 resources at library sites throughout the regional multitype 194.34 cooperatives. 194.35 Subd. 2. [APPLICATION; ELIGIBILITY.] The commissioner 194.36 shall establish a process and application forms for library 195.1 sites to apply for grant funds. Libraries must describe how 195.2 they will cooperate with schools. An applicant must submit a 195.3 technology plan with the application. Eligible applicants must, 195.4 at a minimum, describe how the proposed project is consistent 195.5 with the technology plan; describe how it ensures 195.6 interoperability of hardware, software, and telecommunication; 195.7 identify the specific site needs that the project will address; 195.8 define the project's expected outcomes; and provide the source, 195.9 type, and amounts of all matching funds. To be eligible for a 195.10 site-based technology learning grant, a library site must: 195.11 (1) be a multicounty, multitype library system as defined 195.12 in Minnesota Statutes, section 134.001, subdivision 6; members 195.13 of a multicounty, multitype library system receiving public 195.14 funds, including public libraries as defined in Minnesota 195.15 Statutes, section 134.001, subdivision 2; regional public 195.16 library systems, as defined in Minnesota Statutes, section 195.17 134.001, subdivision 4; a school library; or a partnership of 195.18 public and school libraries; 195.19 (2) have each dollar of grant money matched by at least $1 195.20 of library site money, including in-kind contributions; 195.21 (3) agree to disseminate and share information about its 195.22 project; 195.23 (4) provide a benefit to the greater community; and 195.24 (5) maintain any ongoing costs of support for the 195.25 technology project after the initial funding under the grant 195.26 program. 195.27 Subd. 3. [GRANT AWARD.] The commissioner shall establish 195.28 criteria for awarding grants under this section. All grant 195.29 awards shall be made directly to the multicounty, multitype 195.30 library systems or to a partnership of libraries that belong to 195.31 a multitype system. The commissioner shall consult with 195.32 representatives from the library planning task force and the 195.33 Minnesota education telecommunications council in establishing 195.34 criteria for the library site technology grants. 195.35 Sec. 12. [DATABASE ACCESS PROGRAM FOR PUBLIC LIBRARIES AND 195.36 SCHOOL MEDIA CENTERS.] 196.1 Subdivision 1. [ESTABLISHMENT.] The commissioner shall 196.2 establish a program to provide statewide licenses to commercial 196.3 electronic databases of periodicals, encyclopedias, and 196.4 associated reference materials for school media centers and 196.5 public libraries. The commissioner shall solicit proposals for 196.6 access licenses to such databases from commercial vendors and 196.7 responses to those proposals shall be evaluated by staff of the 196.8 office of library development and service, Minitex staff, and a 196.9 representative panel of school media specialists and public 196.10 librarians. 196.11 Subd. 2. [ELIGIBILITY.] Access to the selected databases 196.12 shall be made available to any school media center that is a 196.13 member of a multicounty, multitype library system as defined in 196.14 Minnesota Statutes, section 134.001, subdivision 6, or any 196.15 public library system as defined in Minnesota Statutes, section 196.16 134.001, subdivision 2 or 4. Any user of those libraries with 196.17 appropriate authentication may have access to the databases from 196.18 a remote site. 196.19 Sec. 13. [LEARNING ACADEMY; COMPUTER INCENTIVE PROGRAM.] 196.20 In order to promote the use of technology and its 196.21 integration into all classroom activities including 196.22 implementation of the graduation standards, integration of 196.23 curriculum, and recordkeeping, the commissioner of children, 196.24 families, and learning shall establish a process to develop 196.25 standards and certify training for an incentive program to 196.26 provide computers for teachers. A district that chooses to 196.27 participate in the incentive program must share in the cost of 196.28 providing computers to eligible teachers. A participating 196.29 district shall provide a computer to teachers who complete the 196.30 requirements under this section. The teacher may choose any 196.31 computer up to a maximum value established by the department. 196.32 The district shall own computers purchased under the 196.33 learning academy. The computer may be used by the teacher 196.34 during school and nonschool hours. The commissioner, in 196.35 consultation with the office of technology and representatives 196.36 of education and the private sector, shall establish the 197.1 requirement for participation including training standards, 197.2 training protocols and courses, and minimum competency or number 197.3 of hours of training. After consulting with districts on the 197.4 types and numbers of computers and standard software to be 197.5 installed on the computers, the commissioner, in cooperation 197.6 with the department of administration and the office of 197.7 technology, shall negotiate with vendors to purchase computers 197.8 for eligible teachers. The cost should reflect the state's 197.9 quantity purchases. 197.10 Sec. 14. [RETOOLING INSTRUCTION FOR PUBLIC LIBRARY STAFF.] 197.11 Subdivision 1. [RETOOLING INSTRUCTION PROGRAM.] In order 197.12 to ensure that citizens throughout Minnesota have effective 197.13 access to resources now available through technological 197.14 innovations, including the Internet, massive databases in 197.15 electronic format, and high-speed data communication systems, 197.16 the commissioner of children, families, and learning shall 197.17 facilitate the design and implementation of a program to upgrade 197.18 the skills of public library staff throughout the state. Not 197.19 later than June 30, 1999, the commissioner shall complete at 197.20 least five major elements in a program to upgrade public library 197.21 staff skills and capabilities. The commissioner may conduct or 197.22 contract for: 197.23 (1) the preparation and development of a curriculum for 197.24 public library staff skill building; 197.25 (2) a pilot project to determine the benefits and 197.26 instructional costs for public library staff skill building; 197.27 (3) the teaching of courses or workshops for existing 197.28 public library staff; 197.29 (4) implementation of a reliable system for tracking course 197.30 and workshop attendance, including provisions for appropriate 197.31 certification of attendees, and for making recognition of staff 197.32 achievements portable from one public library system to another; 197.33 and 197.34 (5) a pilot project to evaluate cost-effective alternative 197.35 distant learning technologies and methodologies. 197.36 Subd. 2. [REPORT AND RECOMMENDATIONS.] The commissioner of 198.1 children, families, and learning shall conduct or contract for a 198.2 report to the legislature, to be delivered not later than 198.3 February 15, 2000, concerning the costs and accomplishments of 198.4 the project under subdivision 1 and providing recommendations 198.5 for additional measures to provide excellent information 198.6 services to the citizens of Minnesota. 198.7 Sec. 15. [REFURBISHED COMPUTER PROGRAM.] 198.8 The commissioner of children, families, and learning shall 198.9 establish a program to refurbish donated computers to increase 198.10 the number of multimedia computers in Minnesota schools. In 198.11 establishing the program, the commissioner shall work with the 198.12 commissioners of administration and corrections and the office 198.13 of technology. The program must be implemented in conjunction 198.14 with the education technology improvement clearinghouses under 198.15 Laws 1996, chapter 412, article 12, section 1, and in 198.16 partnership with business, nonprofit organizations, and 198.17 institutions of higher education. The program must: 198.18 (1) establish the number of multimedia computers to be 198.19 refurbished by July 1, 2000; 198.20 (2) establish partnerships with nonprofit or business 198.21 organizations to solicit donations; 198.22 (3) develop an agreement with the commissioner of 198.23 corrections to facilitate computers in Minnesota correctional 198.24 institutions with procedures to minimize security risks; 198.25 (4) promote the program to school districts; and 198.26 (5) develop plans to equitably distribute computers to 198.27 districts and ensure proper recycling of unsuitable equipment. 198.28 Sec. 16. [APPROPRIATIONS.] 198.29 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 198.30 LEARNING.] The sums indicated in this section are appropriated, 198.31 unless otherwise indicated, from the general fund to the 198.32 department of children, families, and learning for the fiscal 198.33 years designated. 198.34 Subd. 2. [TELECOMMUNICATION ACCESS GRANTS.] For one-time 198.35 grants to school districts and regional public library systems 198.36 to establish connections according to Minnesota Statutes, 199.1 section 124C.74: 199.2 $ 9,000,000 ..... 1998 199.3 $10,000,000 ..... 1999 199.4 Any balance in the first year does not cancel but is 199.5 available in the second year. 199.6 Before a district can receive a grant under this 199.7 subdivision in fiscal year 1999, the district must submit, to 199.8 the commissioner, evidence that it has pursued all possible 199.9 funding options, including ITV revenue under Minnesota Statutes, 199.10 section 124.91, subdivision 5. Notwithstanding Minnesota 199.11 Statutes, section 124.91, subdivision 5, ITV revenue may also be 199.12 used for the purposes of the telecommunication access grants 199.13 under Minnesota Statutes, section 124C.74. $9,000,000 of this 199.14 amount shall not be included as part of the base for fiscal year 199.15 2000-2001. 199.16 Subd. 3. [LEARNING ACADEMY.] For learning academies under 199.17 section 13: 199.18 $2,000,000 ..... 1998 199.19 This appropriation is available until expended. 199.20 The commissioner shall use these funds to share in the 199.21 costs of the computer incentives under section 13. 199.22 Subd. 4. [LEARNING RESOURCE NETWORK.] For the learning 199.23 resource network in section 8: 199.24 $200,000 ..... 1998 199.25 This appropriation is available until June 30, 1999. These 199.26 funds are a one-time appropriation. 199.27 The commissioner shall be responsible for the initial cost 199.28 of establishing the learning resource network. A school site 199.29 choosing to be part of the network shall be responsible for the 199.30 ongoing costs. 199.31 Subd. 5. [TECHNOLOGY GRANT AWARD.] For a grant award to 199.32 districts under section 6: 199.33 $30,000,000 ..... 1998 199.34 This appropriation is available until June 30, 1999. These 199.35 funds are a one-time appropriation. 199.36 Subd. 6. [SCHOOL MEALS.] For technology grants to analyze 200.1 the nutritional components of school meals under section 9: 200.2 $200,000 ..... 1998 200.3 Subd. 7. [OPEN ENROLLMENT TECHNOLOGY PROJECT.] For the 200.4 open enrollment project under section 10: 200.5 $100,000 ..... 1998 200.6 $100,000 ..... 1999 200.7 Any balance in the first year does not cancel but is 200.8 available for the second year. This appropriation is for a 200.9 grant to a learning site. The site shall be chosen by the 200.10 commissioner of children, families, and learning and must be one 200.11 of the rural sites funded by the year-round school/extended week 200.12 or day pilot program created under Laws 1995, First Special 200.13 Session chapter 3, article 7, section 4, as amended by Laws 200.14 1996, chapter 412, article 7, section 13. 200.15 Subd. 8. [LIBRARY TECHNOLOGY SITE GRANT PROGRAM.] For 200.16 one-time library site grants under section 11: 200.17 $2,000,000 ..... 1998 200.18 This appropriation is available until June 30, 1999. 200.19 Subd. 9. [TECHNOLOGY ENHANCEMENT; RESIDENTIAL ACADEMIES.] 200.20 For technology improvements at the Minnesota state academies: 200.21 $500,000 ..... 1998 200.22 $500,000 ..... 1999 200.23 The appropriation is for implementing the Minnesota state 200.24 academies' technology plan including completion of a local area 200.25 network; installation of ten technology laboratories, classroom 200.26 work stations, and additional hardware and software; purchases 200.27 of large screen monitors, speech synthesizers, screen reader 200.28 software, and braille display; and technology support and 200.29 maintenance to assist the academies in fulfilling their 200.30 educational mission. 200.31 Any amount remaining after the first year does not cancel 200.32 but is available in the second year. 200.33 Subd. 10. [RETOOLING.] For retooling instruction for 200.34 public library staff and reporting requirements under section 14: 200.35 $100,000 ..... 1998 200.36 Subd. 11. [REGIONAL MANAGEMENT INFORMATION CENTERS.] The 201.1 sum indicated in this subdivision is appropriated from the 201.2 general fund to the office of technology for the fiscal year 201.3 designated. For grants to regional management information 201.4 centers under Minnesota Statutes, section 121.935, for the 201.5 transition period in their technology uses and consolidation of 201.6 processing needs: 201.7 $978,000 ..... 1998 201.8 This appropriation is available until June 30, 1999. 201.9 Subd. 12. [UNREIMBURSED TELECOMMUNICATIONS COSTS.] For a 201.10 grant to the northeast Minnesota telecommunications access grant 201.11 governance board: 201.12 $124,000 ..... 1998 201.13 The grant is to fund interconnectivity costs incurred by 201.14 school districts and libraries that were not included in the 201.15 telecommunication access grant awarded to the region. 201.16 Subd. 13. [INTERACTIVE TELEVISION (ITV) AID.] For 201.17 interactive television (ITV) aid under Minnesota Statutes, 201.18 section 124.91, subdivision 5: 201.19 $4,030,000 ..... 1998 201.20 $5,942,000 ..... 1999 201.21 The 1998 appropriation includes $384,000 for 1997 and 201.22 $3,646,000 for 1998. 201.23 The 1999 appropriation includes $405,000 for 1998 and 201.24 $5,537,000 for 1999. 201.25 Subd. 14. [TECHNOLOGY INVESTMENT GRANTS.] For grants to 201.26 school districts for the purposes of section 7: 201.27 $20,000,000 ..... 1998 201.28 Of this amount, up to $6,000,000 is for the multimedia 201.29 computer refurbishment program under section 15. 201.30 The commissioner may use all or part of this appropriation 201.31 for an agreement with the commissioner of corrections to 201.32 establish refurbishment centers at one or more correctional 201.33 institutions. 201.34 This appropriation is available until expended. These 201.35 funds are a one-time appropriation. 201.36 Subd. 15. [RED ROCK CENTRAL REMOTE LEARNER GRANT.] For a 202.1 grant to independent school district Nos. 178, Storden-Jeffers; 202.2 633, Lamberton; and 638, Sanborn, to establish a high school 202.3 program for remote access for learners to the districts' 202.4 educational network of data and training, commercial access for 202.5 youth entrepreneurship, and commercial access for school-to-work 202.6 programs: 202.7 $75,000 ..... 1998 202.8 This appropriation may be used for start-up and operation 202.9 costs. 202.10 Subd. 16. [DATABASE ACCESS.] For the purposes of section 202.11 13: 202.12 $1,000,000 ..... 1998 202.13 This appropriation is available until June 30, 1999. These 202.14 funds are a one-time appropriation. 202.15 Sec. 17. [REPEALER.] 202.16 Minnesota Statutes 1996, section 134.46, is repealed. Laws 202.17 1995, First Special Session chapter 3, article 12, section 8, is 202.18 repealed. 202.19 ARTICLE 10 202.20 STATE AGENCIES 202.21 Section 1. [APPROPRIATIONS; DEPARTMENT OF CHILDREN, 202.22 FAMILIES, AND LEARNING.] 202.23 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 202.24 LEARNING.] The sums indicated in this section are appropriated 202.25 from the general fund to the department of children, families, 202.26 and learning for the fiscal years designated. 202.27 Subd. 2. [DEPARTMENT.] For the department of children, 202.28 families, and learning: 202.29 $24,598,000 ..... 1998 202.30 $24,216,000 ..... 1999 202.31 (a) Any balance in the first year does not cancel but is 202.32 available in the second year. 202.33 (b) $21,000 each year is from the trunk highway fund. 202.34 (c) $622,000 in 1998 and $627,000 in 1999 is for the 202.35 academic excellence foundation. 202.36 Up to $50,000 each year is contingent upon the match of $1 203.1 in the previous year from private sources consisting of either 203.2 direct monetary contributions or in-kind contributions of 203.3 related goods or services, for each $1 of the appropriation. 203.4 The commissioner of children, families, and learning must 203.5 certify receipt of the money or documentation for the private 203.6 matching funds or in-kind contributions. The unencumbered 203.7 balance from the amount actually appropriated from the 203.8 contingent amount in 1998 does not cancel but is available in 203.9 1999. The amount carried forward must not be used to establish 203.10 a larger annual base appropriation for later fiscal years. 203.11 (d) $207,000 in 1998 and $210,000 in 1999 is for the state 203.12 board of education. 203.13 (e) $230,000 in 1998 and $234,000 in 1999 is for the board 203.14 of teaching. 203.15 (f) $775,000 each year is for educational effectiveness 203.16 programs according to Minnesota Statutes, sections 121.602 and 203.17 121.608. 203.18 (g) $60,000 each year is for contracting with the state 203.19 fire marshal to provide the services required according to 203.20 Minnesota Statutes, section 121.1502. 203.21 (h) $400,000 each year is for health and safety management 203.22 assistance contracts under Minnesota Statutes, section 124.83. 203.23 (i) The expenditures of federal grants and aids as shown in 203.24 the biennial budget document and its supplements are approved 203.25 and appropriated and shall be spent as indicated. 203.26 (j) The commissioner shall maintain no more than five total 203.27 complement in the categories of commissioner, deputy 203.28 commissioner, assistant commissioner, assistant to the 203.29 commissioner, and executive assistant. 203.30 The department of children, families, and learning may 203.31 establish full-time, part-time, or seasonal positions as 203.32 necessary to carry out assigned responsibilities and missions. 203.33 Actual employment levels are limited by the availability of 203.34 state funds appropriated for salaries, benefits, and agency 203.35 operations or funds available from other sources for such 203.36 purposes. 204.1 (k) The department of children, families, and learning 204.2 shall develop a performance report on the quality of its 204.3 programs and services. The report must be consistent with the 204.4 process specified in Minnesota Statutes, sections 15.90 to 204.5 15.92. The goals, objectives, and measures of this report must 204.6 be developed in cooperation with the chairs of the finance 204.7 divisions of the education committees of the house of 204.8 representatives and senate, the department of finance, and the 204.9 office of legislative auditor. The report must include data to 204.10 indicate the progress of the department in meeting its goals and 204.11 objectives. 204.12 The department of children, families, and learning must 204.13 present a biennial report on the quality and performance of key 204.14 education programs in Minnesota's public early childhood, 204.15 elementary, middle, and secondary education programs. To the 204.16 extent possible, the plan must be consistent with Minnesota 204.17 Statutes, sections 15.90 to 15.92. The department must consult 204.18 with the chairs of the finance divisions of the education 204.19 committees of the house of representatives and senate, the 204.20 department of finance, and the office of legislative auditor in 204.21 developing this plan. 204.22 (l) $188,000 each year is appropriated from the special 204.23 revenue fund for the graduation rule. The department 204.24 appropriation is to be used to fund continued assessment and 204.25 standards development and piloting; to broaden public 204.26 understanding through communication; to continue development of 204.27 learning benchmarks; for ongoing statewide assessment efforts; 204.28 to develop system performance standards; and to provide 204.29 technical assistance to schools throughout the state. The 204.30 appropriation from the special revenue fund is to be used for 204.31 appropriate development efforts in health-related standards and 204.32 assessments. The commissioner may transfer any portion of this 204.33 appropriation not needed for the purpose of this paragraph to 204.34 the Minnesota highway safety center at St. Cloud University. 204.35 Any amount of this appropriation does not cancel and shall be 204.36 carried forward to the following fiscal year. Notwithstanding 205.1 any law to the contrary, the commissioner may contract for 205.2 national expertise and related services in each of these 205.3 development areas. Notwithstanding Minnesota Statutes, section 205.4 15.53, subdivision 2, the commissioner of children, families, 205.5 and learning may contract with a school district for a period no 205.6 longer than five consecutive years for the services of an 205.7 educator to work in the development, implementation, or both, of 205.8 the graduation rule. The commissioner may contract for services 205.9 and expertise as necessary for development and implementation of 205.10 the graduation standards. Notwithstanding any law to the 205.11 contrary, the contracts are not subject to the contract 205.12 certification procedures of the commissioner of administration 205.13 or of Minnesota Statutes, chapter 16B, and are not subject to or 205.14 included in any spending limitations on contracts. 205.15 (m) $50,000 is to ensure compliance with state and federal 205.16 laws prohibiting discrimination because of race, religion, or 205.17 sex. The department shall use the appropriation to provide 205.18 state-level leadership on equal education opportunities which 205.19 promote elimination of discriminatory practices in the areas of 205.20 race, religion, and sex in public schools and public educational 205.21 agencies under its general supervision and on activities 205.22 including, at least, compliance monitoring and voluntary 205.23 compliance when local school district deficiencies are found. 205.24 (n) $500,000 each year is for department support of 205.25 technology initiatives and growing data and information 205.26 processing needs. 205.27 Sec. 2. [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 205.28 CENTER FOR ARTS EDUCATION.] 205.29 The sums indicated in this section are appropriated from 205.30 the general fund to the center for arts education for the fiscal 205.31 years designated: 205.32 $5,541,000 ..... 1998 205.33 $6,054,000 ..... 1999 205.34 Of the fiscal year 1998 appropriation, $154,000 is to fund 205.35 artist and arts organization participation in the education 205.36 residency and education technology projects, $75,000 is for 206.1 school support for the residency project, and $121,000 is for 206.2 further development of the partners: arts and school for 206.3 students (PASS) program, including pilots. Of the fiscal year 206.4 1999 appropriation, $154,000 is to fund artist and arts 206.5 organizations participation in the education residency project, 206.6 $75,000 is for school support for the residency project, and 206.7 $121,000 is to fund the PASS program, including additional 206.8 pilots. The guidelines for the education residency project and 206.9 the PASS program shall be developed and defined by the center 206.10 for arts education in cooperation with the Minnesota arts 206.11 board. The Minnesota arts board shall participate in the review 206.12 and allocation process. The center for arts education and the 206.13 Minnesota arts board shall cooperate to fund these projects. 206.14 The center for arts education may establish full-time, 206.15 part-time, or seasonal positions as necessary to carry out 206.16 assigned responsibilities and missions. Actual employment 206.17 levels are limited by the availability of state funds 206.18 appropriated for salaries, benefits, and agency operations or 206.19 funds available from other sources for such purposes. 206.20 Any balance in the first year does not cancel but is 206.21 available in the second year. 206.22 Sec. 3. [APPROPRIATIONS; FARIBAULT ACADEMIES.] 206.23 The sums indicated in this section are appropriated from 206.24 the general fund to the department of children, families, and 206.25 learning for the Faribault academies for the fiscal years 206.26 designated: 206.27 $8,910,000 ..... 1998 206.28 $8,908,000 ..... 1999 206.29 Any balance in the first year does not cancel but is 206.30 available in the second year. 206.31 The state board of education may establish full-time, 206.32 part-time, or seasonal positions as necessary to carry out 206.33 assigned responsibilities and missions of the Faribault 206.34 academies. Actual employment levels are limited by the 206.35 availability of state funds appropriated for salaries, benefits, 206.36 and agency operations or funds available from other sources for 207.1 such purposes. 207.2 In the next biennial budget, the academies must assess 207.3 their progress in meeting the established performance measures 207.4 for the Faribault academies and inform the legislature on the 207.5 content of that assessment. The information must include an 207.6 assessment of its progress by consumers and employees. 207.7 ARTICLE 11 207.8 TECHNICAL AND CONFORMING AMENDMENTS 207.9 Section 1. Minnesota Statutes 1996, section 124A.225, 207.10 subdivision 1, is amended to read: 207.11 Subdivision 1. [REVENUE.] Of a district's general 207.12 education revenue an amount equal to the sum of the number of 207.13 elementary fund balance pupils in average daily membership 207.14 defined in section 124.17, subdivision1h1f, and one-half of 207.15 the number of kindergarten fund balance pupils in average daily 207.16 membership as defined in section 124.17, subdivision1h1f, 207.17 times .06 for fiscal year 1995 and thereafter times the formula 207.18 allowance must be reserved according to this section.