HF 2133

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to education; modifying fall payment date of 
  1.3             endowment fund earnings; clarifying adjustment of aids 
  1.4             and levies for reduced pupil unit weight for secondary 
  1.5             students; modifying funding adjustment for open 
  1.6             enrollment and other alternative attendance programs; 
  1.7             converting referendum authority to an allowance per 
  1.8             pupil unit; clarifying that district may convert to 
  1.9             ongoing referendum; allowing county apportionment 
  1.10            amounts to be recovered from state aids; adjusting 
  1.11            general education aid for pupils attending charter 
  1.12            schools; delaying repeal of statutes and rules needed 
  1.13            for funding computations; clarifying the elimination 
  1.14            of the capital expenditure and transportation funds; 
  1.15            modifying the special education due process hearing; 
  1.16            modifying the LEP funding formula to allow the base 
  1.17            year to roll forward; modifying calculation of 
  1.18            assurance of mastery aid to use fund balance pupil 
  1.19            units; clarifying tuition for special education excess 
  1.20            cost revenue; providing for adjustments for 
  1.21            alternative attendance programs in general revenue for 
  1.22            purposes of computing excess cost revenue; providing 
  1.23            for the computation of secondary vocational-disabled 
  1.24            revenue using current year data; modifying the 
  1.25            interagency early childhood intervention system; 
  1.26            requiring that community action programs participate 
  1.27            in family services collaboratives; removing exclusion 
  1.28            of school buses from bonding authority and limiting 
  1.29            total levy for equipment and facilities bonds; 
  1.30            providing for clarification and consistency of 
  1.31            facilities bonding; repealing the open enrollment 
  1.32            transportation appeal requirement; providing for 
  1.33            procedure for closed districts to consider applicants 
  1.34            for charter schools; modifying conversion of existing 
  1.35            schools to charter schools; modifying post-secondary 
  1.36            enrollment options program to include no payment for 
  1.37            no student attendance in class; expanding the number 
  1.38            of districts receiving year-round school/extended week 
  1.39            or day pilot program grants; repealing intermediate 
  1.40            district exception to post-secondary enrollment 
  1.41            options programs; eliminating the private alternative 
  1.42            program report; excluding transportation revenue from 
  1.43            general education revenue for charter schools; 
  1.44            providing for changes in transportation funding for 
  1.45            charter schools; removing obsolete references to 
  1.46            equipment revenue; modifying special education and 
  2.1             limited English proficiency aid for a charter school; 
  2.2             clarifying approved costs for a magnet school 
  2.3             facility; providing that a staff development 
  2.4             expenditure report include a breakdown of 
  2.5             expenditures; permitting public assistance data to be 
  2.6             used to determine eligibility for free school meals; 
  2.7             clarifying minimum number of school days; clarifying 
  2.8             statutory operating debt and adjusting the reporting 
  2.9             date; permitting new construction to be eligible for 
  2.10            public library accessibility grants; amending 
  2.11            Minnesota Statutes 1994, sections 120.062, subdivision 
  2.12            9; 120.101, subdivision 5b; 120.1701, subdivision 10; 
  2.13            121.8355, subdivision 1; 124.09; 124.19, subdivision 
  2.14            1; 124.2727, by adding a subdivision; 124.273, by 
  2.15            adding subdivisions; 124.311, subdivision 5; 124A.02, 
  2.16            subdivision 25; 124A.029, subdivision 4; 124A.03, 
  2.17            subdivision 3b, and by adding a subdivision; 124A.035, 
  2.18            subdivision 4; 124A.036, subdivision 5, and by adding 
  2.19            a subdivision; 124C.498, subdivision 3; and 134.45, 
  2.20            subdivision 5; Minnesota Statutes 1995 Supplement, 
  2.21            sections 13.46, subdivision 2; 120.064, subdivisions 4 
  2.22            and 4a; 120.17, subdivision 3b; 120.1701, subdivision 
  2.23            20; 121.917, subdivision 4; 123.3514, subdivisions 6 
  2.24            and 6b; 123.39, subdivision 6; 124.17, subdivision 1; 
  2.25            124.2445; 124.2455; 124.248, subdivisions 1, 1a, 2, 3, 
  2.26            and by adding a subdivision; 124.273, subdivisions 1c 
  2.27            and 1d; 124.323, subdivision 1; 124.574, subdivision 
  2.28            2g; 124A.0311, subdivision 2; 124C.498, subdivision 2; 
  2.29            126.70, subdivision 1; and 134.45, subdivision 2; Laws 
  2.30            1993, chapter 224, article 12, sections 32, as 
  2.31            amended; 39, as amended; and 41, as amended; Laws 
  2.32            1995, First Special Session chapter 3, article 7, 
  2.33            section 5, subdivision 4; repealing Minnesota Statutes 
  2.34            1994, sections 123.3514, subdivision 9; and 124A.03, 
  2.35            subdivision 3b; Laws 1991, chapter 265, article 4, 
  2.36            section 27. 
  2.37  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.38                             ARTICLE 1
  2.39                          GENERAL REVENUE
  2.40     Section 1.  Minnesota Statutes 1994, section 124.09, is 
  2.41  amended to read: 
  2.42     124.09 [SCHOOL ENDOWMENT FUND, APPORTIONMENT.] 
  2.43     The school endowment fund shall be apportioned semiannually 
  2.44  by the commissioner, on the first Monday in March and October 
  2.45  September in each year, to districts whose schools have been in 
  2.46  session at least nine months.  The apportionment shall be in 
  2.47  proportion to the number of pupils in average daily membership 
  2.48  during the preceding year; provided, that apportionment shall 
  2.49  not be paid to a district for pupils for whom tuition is 
  2.50  received by the district. 
  2.51     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
  2.52  124.17, subdivision 1, is amended to read: 
  2.53     Subdivision 1.  [PUPIL UNIT.] Pupil units for each resident 
  3.1   pupil in average daily membership shall be counted according to 
  3.2   this subdivision.  
  3.3      (a) A prekindergarten pupil with a disability who is 
  3.4   enrolled in a program approved by the commissioner and has an 
  3.5   individual education plan is counted as the ratio of the number 
  3.6   of hours of assessment and education service to 825 with a 
  3.7   minimum of 0.28, but not more than one. 
  3.8      (b) A prekindergarten pupil who is assessed but determined 
  3.9   not to be handicapped is counted as the ratio of the number of 
  3.10  hours of assessment service to 825.  
  3.11     (c) A kindergarten pupil with a disability who is enrolled 
  3.12  in a program approved by the commissioner is counted as the 
  3.13  ratio of the number of hours of assessment and education 
  3.14  services required in the fiscal year by the pupil's individual 
  3.15  education program plan to 875, but not more than one. 
  3.16     (d) A kindergarten pupil who is not included in paragraph 
  3.17  (c) is counted as .53 of a pupil unit for fiscal year 1995 and 
  3.18  thereafter. 
  3.19     (e) A pupil who is in any of grades 1 to 6 is counted as 
  3.20  1.06 pupil units for fiscal year 1995 and thereafter. 
  3.21     (f) For fiscal year 1996 and fiscal year 1997, a pupil who 
  3.22  is in any of grades 7 to 12 is counted as 1.3 pupil units.  For 
  3.23  fiscal year 1998, a pupil who is in any of grades 7 to 12 is 
  3.24  counted as 1.25 pupil units.  For fiscal year 1999 and later 
  3.25  years, a pupil who is in any of grades 7 to 12 is counted as 1.2 
  3.26  pupil units. 
  3.27     (g) For fiscal year 1996 and fiscal year 1997, a pupil who 
  3.28  is in the post-secondary enrollment options program is counted 
  3.29  as 1.3 pupil units.  For fiscal year 1998, a pupil who is in the 
  3.30  post-secondary enrollment options program is counted as 1.25 
  3.31  pupil units.  For fiscal year 1999 and later years, a pupil who 
  3.32  is in the post-secondary enrollment options program is counted 
  3.33  as 1.2 pupil units. 
  3.34     (h) In fiscal year 1998, the sum of pupil units used in 
  3.35  computing a district's general education revenue and referendum 
  3.36  revenue may not be reduced by more than two percent due to the 
  4.1   reduction in the secondary pupil weight from 1.3 as specified in 
  4.2   paragraphs (f) and (g).  In fiscal year 1999 and later years, 
  4.3   the sum of pupil units used in computing a district's general 
  4.4   education revenue and referendum revenue may not be decreased by 
  4.5   more than four percent due to the reduction in the secondary 
  4.6   weight from 1.3 as specified in paragraphs (f) and (g). 
  4.7      Sec. 3.  Minnesota Statutes 1995 Supplement, section 
  4.8   124.248, subdivision 1, is amended to read: 
  4.9      Subdivision 1.  [GENERAL EDUCATION AND REFERENDUM REVENUE.] 
  4.10  (a) General education revenue shall be paid to a charter school 
  4.11  as though it were a school district.  The general education 
  4.12  revenue for each pupil unit is the state average general 
  4.13  education revenue per pupil unit minus $170, calculated without 
  4.14  compensatory revenue, transportation sparsity revenue, and the 
  4.15  transportation portion of the transition revenue adjustment, 
  4.16  plus compensatory revenue as though the school were a school 
  4.17  district. 
  4.18     (b) Referendum revenue shall be paid to a charter school as 
  4.19  though it were a school district.  The referendum revenue for 
  4.20  each pupil unit is the lesser of the state average referendum 
  4.21  equalization revenue per pupil unit or the referendum 
  4.22  equalization revenue per pupil unit of the district in which the 
  4.23  charter school is located. 
  4.24     Sec. 4.  Minnesota Statutes 1995 Supplement, section 
  4.25  124.248, is amended by adding a subdivision to read: 
  4.26     Subd. 1b.  [SCHOOL DISTRICT COOPERATION REVENUE.] (a) 
  4.27  School district cooperation aid shall be paid to a charter 
  4.28  school according to section 124.2727 as though it were a school 
  4.29  district.  School district cooperation aid shall equal school 
  4.30  district cooperation revenue. 
  4.31     (b) A charter school must place its district cooperation 
  4.32  revenue in a reserved account and may only use the revenue to 
  4.33  purchase goods and services from entities formed for cooperative 
  4.34  purposes or to otherwise provide educational services in a 
  4.35  cooperative manner.  Notwithstanding section 124.2727, 
  4.36  subdivision 6d, a charter school is not required to spend at 
  5.1   least $9 per pupil unit of its district cooperation revenue on 
  5.2   secondary vocational programs. 
  5.3      Sec. 5.  Minnesota Statutes 1994, section 124.2727, is 
  5.4   amended by adding a subdivision to read: 
  5.5      Subd. 10.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The district 
  5.6   cooperation aid under subdivision 6c for districts must be 
  5.7   adjusted for each pupil attending a nonresident district under 
  5.8   sections 120.062, 120.075, 120.0751, 120.0752, 124C.45 to 
  5.9   124C.48, and 126.22.  The adjustments must be made according to 
  5.10  this subdivision. 
  5.11     (a) Aid paid to a district of the pupil's residence must be 
  5.12  reduced by an amount equal to the revenue amount per actual 
  5.13  pupil unit of the resident district times the number of pupil 
  5.14  units of pupils enrolled in nonresident districts. 
  5.15     (b) Aid paid to a district serving nonresidents must be 
  5.16  increased by an amount equal to the revenue amount per actual 
  5.17  pupil unit of the nonresident district times the number of pupil 
  5.18  units of nonresident pupils enrolled in the district. 
  5.19     (c) If the amount of the reduction to be made from the aid 
  5.20  of a district is greater than the amount of aid otherwise due 
  5.21  the district, the excess reduction must be made from other state 
  5.22  aids due the district. 
  5.23     Sec. 6.  Minnesota Statutes 1994, section 124A.029, 
  5.24  subdivision 4, is amended to read: 
  5.25     Subd. 4.  [PER PUPIL REVENUE OPTION CONVERSION.] A district 
  5.26  may, by school board resolution, request that the department 
  5.27  convert the levy authority under section 124.912, subdivisions 2 
  5.28  and 3, or its current referendum revenue, excluding authority 
  5.29  based on a dollar amount, authorized before July 1, 1993, to an 
  5.30  allowance per pupil.  The district must adopt a resolution and 
  5.31  submit a copy of the resolution to the department by July 1, 
  5.32  1993.  (a) The department shall convert a each district's 
  5.33  referendum revenue authority for fiscal year 1995 2002 and later 
  5.34  years to an allowance per pupil unit as follows:  the revenue 
  5.35  allowance equals the amount determined by dividing the 
  5.36  district's maximum revenue under section 124A.03 or 124.912, 
  6.1   subdivisions 2 and 3, for fiscal year 1994 2001 by the 
  6.2   district's 1993-1994 2000-2001 actual pupil units.  A district's 
  6.3   maximum revenue for all later years for which the revenue is 
  6.4   authorized equals the revenue allowance times the district's 
  6.5   actual pupil units for that year.  If a district has referendum 
  6.6   authority under section 124A.03 and levy authority under section 
  6.7   124.912, subdivisions 2 and 3, and the district requests that 
  6.8   each be converted, the department shall convert separate revenue 
  6.9   allowances for each.  However, if a district's referendum 
  6.10  revenue is limited to a dollar amount, the maximum revenue under 
  6.11  section 124A.03 must not exceed that dollar amount.  If the 
  6.12  referendum authority of a district is converted according to 
  6.13  this subdivision, and the question on the referendum ballot did 
  6.14  not provide for an expiration date, the authority shall expire 
  6.15  according to section 124A.0311. 
  6.16     (b) The referendum allowance reduction shall be applied 
  6.17  first to the authority with the earliest expiration date. 
  6.18     Sec. 7.  Minnesota Statutes 1994, section 124A.03, 
  6.19  subdivision 3b, is amended to read: 
  6.20     Subd. 3b.  [FISCAL YEAR 1997 REFERENDUM ALLOWANCE 
  6.21  REDUCTION.] For fiscal year 1997, a district's referendum 
  6.22  allowance under subdivision 1c is reduced by the amounts 
  6.23  calculated in paragraphs (a), (b), (c), and (d). 
  6.24     (a) The referendum allowance reduction equals the amount by 
  6.25  which a district's supplemental revenue reduction exceeds the 
  6.26  district's supplemental revenue allowance for fiscal year 1993. 
  6.27     (b) Notwithstanding paragraph (a), if a district's initial 
  6.28  referendum allowance is less than ten percent of the formula 
  6.29  allowance for that year, the reduction equals the lesser of (1) 
  6.30  an amount equal to $100, or (2) the amount calculated in 
  6.31  paragraph (a). 
  6.32     (c) Notwithstanding paragraph (a) or (b), a school 
  6.33  district's referendum allowance reduction equals (1) an amount 
  6.34  equal to $100, times (2) one minus the ratio of 20 percent of 
  6.35  the formula allowance minus the district's initial referendum 
  6.36  allowance limit to 20 percent of the formula allowance for that 
  7.1   year if: 
  7.2      (i) the district's adjusted net tax capacity for assessment 
  7.3   year 1992 per actual pupil unit for fiscal year 1995 is less 
  7.4   than $3,000; 
  7.5      (ii) the district's net unappropriated operating fund 
  7.6   balance as of June 30, 1993, divided by the actual pupil units 
  7.7   for fiscal year 1995 is less than $200; 
  7.8      (iii) the district's supplemental revenue allowance for 
  7.9   fiscal year 1993 is equal to zero; and 
  7.10     (iv) the district's initial referendum revenue authority 
  7.11  for the current year divided by the district's net tax capacity 
  7.12  for assessment year 1992 is greater than ten percent. 
  7.13     (d) Notwithstanding paragraph (a), (b), or (c), the 
  7.14  referendum revenue reduction for a newly reorganized district is 
  7.15  computed as follows: 
  7.16     (1) for a newly reorganized district created effective July 
  7.17  1, 1994, the referendum revenue reduction equals the lesser of 
  7.18  the amount calculated for the combined district under paragraph 
  7.19  (a), (b), or (c), or the sum of the amounts by which each of the 
  7.20  reorganizing district's supplemental revenue reduction exceeds 
  7.21  its respective supplemental revenue allowances calculated for 
  7.22  the districts as if they were still in existence for fiscal year 
  7.23  1995; or 
  7.24     (2) for a newly reorganized district created after July 1, 
  7.25  1994, the referendum revenue reduction equals the lesser of the 
  7.26  amount calculated for the combined district under paragraph (a), 
  7.27  (b), or (c), or the sum of the amounts by which each of the 
  7.28  reorganizing district's supplemental revenue reduction exceeds 
  7.29  its respective supplemental revenue allowances calculated for 
  7.30  the year preceding the year of reorganization. 
  7.31     Sec. 8.  Minnesota Statutes 1994, section 124A.03, is 
  7.32  amended by adding a subdivision to read: 
  7.33     Subd. 3c.  [REFERENDUM ALLOWANCE REDUCTION.] For fiscal 
  7.34  year 1998 and later, a district's referendum allowance for 
  7.35  referendum authority under subdivision 1c is reduced as provided 
  7.36  in this subdivision.  
  8.1      (a) For referendum revenue authority approved before July 
  8.2   1, 1996, and effective for fiscal year 1997, the reduction 
  8.3   equals the amount of the reduction computed for fiscal year 1997 
  8.4   under subdivision 3b.  
  8.5      (b) For referendum revenue authority approved before July 
  8.6   1, 1996, and effective beginning in fiscal year 1998, the 
  8.7   reduction equals the amount of the reduction computed for fiscal 
  8.8   year 1998 under subdivision 3b.  
  8.9      (c) For referendum revenue authority approved after June 
  8.10  30, 1996, there is no reduction.  
  8.11     (d) For districts with more than one referendum authority, 
  8.12  the reduction shall be computed separately for each authority.  
  8.13  The reduction shall be applied first to authorities levied 
  8.14  against tax capacity, and then to authorities levied against 
  8.15  referendum market value.  For districts with more than one 
  8.16  authority levied against net tax capacity or against referendum 
  8.17  market value, the referendum allowance reduction shall be 
  8.18  applied first to the authority with the earliest expiration date.
  8.19     (e) For a newly reorganized district created after July 1, 
  8.20  1996, the referendum revenue reduction equals the lesser of the 
  8.21  amount calculated for the combined district, or the sum of the 
  8.22  amounts by which each of the reorganizing district's 
  8.23  supplemental revenue reduction exceeds its respective 
  8.24  supplemental revenue allowances calculated for the year 
  8.25  preceding the year of reorganization. 
  8.26     Sec. 9.  Minnesota Statutes 1995 Supplement, section 
  8.27  124A.0311, subdivision 2, is amended to read: 
  8.28     Subd. 2.  [CONVERSION TO MARKET VALUE.] (a) Prior to June 
  8.29  1, 1997, by June 1 of each year, a school board may, by 
  8.30  resolution of a majority of its board, convert any remaining 
  8.31  portion of its referendum authority under section 124A.03, 
  8.32  subdivision 2, that is authorized to be levied against net tax 
  8.33  capacity to referendum authority that is authorized to be levied 
  8.34  against the referendum market value of all taxable property 
  8.35  located within the school district.  At the option of the school 
  8.36  board, any remaining portion of its referendum authority may be 
  9.1   converted in two or more parts at separate times.  The 
  9.2   referendum authority may be converted from net tax capacity to 
  9.3   referendum market value according to a schedule adopted by 
  9.4   resolution of the school board for years prior to taxes payable 
  9.5   in 2001, provided that, for taxes payable in 2001 and later, the 
  9.6   full amount of the referendum authority is levied against 
  9.7   referendum market value.  The board must notify the commissioner 
  9.8   of children, families, and learning of the amount of referendum 
  9.9   authority that has been converted from net tax capacity to 
  9.10  referendum market value, if any, by June 15, of each year.  The 
  9.11  maximum length of a referendum converted under this paragraph is 
  9.12  ten years. 
  9.13     (b) For referendum levy amounts converted between June 1, 
  9.14  1997, and June 1, 1998, all other conditions of this subdivision 
  9.15  apply except that the maximum length of the referendum is 
  9.16  limited to seven years. 
  9.17     (c) For referendum levy amounts converted between June 1, 
  9.18  1998, and June 1, 1999, all other conditions of this subdivision 
  9.19  apply except that the maximum length of the referendum is 
  9.20  limited to six years. 
  9.21     (d) For referendum levy amounts converted between June 1, 
  9.22  1999, and June 1, 2000, all other conditions of this subdivision 
  9.23  apply except that the maximum length of the referendum is 
  9.24  limited to five years. 
  9.25     Sec. 10.  Minnesota Statutes 1994, section 124A.035, 
  9.26  subdivision 4, is amended to read: 
  9.27     Subd. 4.  [COUNTY APPORTIONMENT DEDUCTION.] Each year the 
  9.28  amount of money apportioned to a school district for that year 
  9.29  pursuant to section 124.10, subdivision 2, excluding any 
  9.30  district where the general education levy is determined 
  9.31  according to section 124A.23, subdivision 3, shall be deducted 
  9.32  from the general education aid earned by that district for the 
  9.33  same year or from aid earned from other state sources.  
  9.34     Sec. 11.  Minnesota Statutes 1994, section 124A.036, 
  9.35  subdivision 5, is amended to read: 
  9.36     Subd. 5.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
 10.1   education aid for districts must be adjusted for each pupil 
 10.2   attending a nonresident district under sections 120.062, 
 10.3   120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22.  
 10.4   The adjustments must be made according to this subdivision. 
 10.5      (a) General education aid paid to a resident district must 
 10.6   be reduced by an amount equal to the sum of:  (i) the general 
 10.7   education revenue exclusive of compensatory revenue, and (ii) 
 10.8   the referendum equalization revenue attributable to the pupil in 
 10.9   the resident district. 
 10.10     (b) General education aid paid to a district serving a 
 10.11  pupil in programs listed in this subdivision shall be increased 
 10.12  by an amount equal to the sum of:  (i) the general education 
 10.13  revenue exclusive of compensatory revenue, and (ii) the 
 10.14  referendum equalization revenue attributable to the pupil in the 
 10.15  nonresident district.  
 10.16     (c) If the amount of the reduction to be made from the 
 10.17  general education aid of the resident district is greater than 
 10.18  the amount of general education aid otherwise due the district, 
 10.19  the excess reduction must be made from other state aids due the 
 10.20  district. 
 10.21     (d) The district of residence shall pay tuition to a 
 10.22  district or an area learning center, operated according to 
 10.23  paragraph (e), providing special instruction and services to a 
 10.24  pupil with a disability, as defined in section 120.03, or a 
 10.25  pupil, as defined in section 120.181, who is enrolled in a 
 10.26  program listed in this subdivision.  The tuition shall be equal 
 10.27  to (1) the actual cost of providing special instruction and 
 10.28  services to the pupil, including a proportionate amount for debt 
 10.29  service and for capital expenditure facilities and equipment, 
 10.30  and debt service but not including any amount for 
 10.31  transportation, minus (2) the amount of general education aid, 
 10.32  the amount of capital expenditure facilities aid and capital 
 10.33  expenditure equipment aid received under section 124.245, 
 10.34  subdivision 6, and special education aid, attributable to that 
 10.35  pupil, that is received by the district providing special 
 10.36  instruction and services. 
 11.1      (e) An area learning center operated by an educational 
 11.2   cooperative service unit, intermediate district, education 
 11.3   district, or a joint powers cooperative may elect through the 
 11.4   action of the constituent boards to charge tuition for pupils 
 11.5   rather than to calculate general education aid adjustments under 
 11.6   paragraph (a), (b), or (c).  The tuition must be equal to the 
 11.7   greater of the average general education revenue per pupil unit 
 11.8   attributable to the pupil, or the actual cost of providing the 
 11.9   instruction, excluding transportation costs, if the pupil meets 
 11.10  the requirements of section 120.03 or 120.181.  
 11.11     Sec. 12.  Minnesota Statutes 1994, section 124A.036, is 
 11.12  amended by adding a subdivision to read: 
 11.13     Subd. 6.  [CHARTER SCHOOLS.] The general education aid for 
 11.14  districts must be adjusted for each pupil attending a charter 
 11.15  school under section 120.064.  The adjustments must be made 
 11.16  according to this subdivision. 
 11.17     (a) General education aid paid to a resident district must 
 11.18  be reduced by an amount equal to the sum of:  (1) the general 
 11.19  education revenue exclusive of compensatory revenue; and (2) the 
 11.20  referendum equalization revenue attributable to the pupil in the 
 11.21  resident district. 
 11.22     (b) General education aid paid to a district in which a 
 11.23  charter school not providing transportation according to section 
 11.24  120.064, subdivision 15, is located shall be increased by an 
 11.25  amount equal to the product of:  (1) the sum of $170, plus the 
 11.26  transportation sparsity allowance for the district, plus the 
 11.27  transportation transition allowance for the district; times (2) 
 11.28  the pupil units attributable to the pupil.  
 11.29     (c) If the amount of the reduction to be made from the 
 11.30  general education aid of the resident district is greater than 
 11.31  the amount of general education aid otherwise due the district, 
 11.32  the excess reduction must be made from other state aids due the 
 11.33  district. 
 11.34     Sec. 13.  Laws 1993, chapter 224, article 12, section 32, 
 11.35  as amended by Laws 1993, chapter 374, section 22, as amended by 
 11.36  Laws 1995, First Special Session chapter 3, article 11, section 
 12.1   20, is amended to read: 
 12.2      Sec. 32.  [REPEALER.] 
 12.3      (a) Minnesota Statutes 1992, sections 120.095; 120.101, 
 12.4   subdivision 5a; 120.75, subdivision 2; 120.80, subdivision 2; 
 12.5   121.11, subdivisions 6 and 13; 121.165; 121.19; 121.49; 121.883; 
 12.6   121.90; 121.901; 121.902; 121.904, subdivisions 5, 6, 8, 9, 10, 
 12.7   11a, and 11c; 121.908, subdivision 4; 121.9121, subdivisions 3 
 12.8   and 5; 121.931, subdivisions 6, 6a, 7, and 8; 121.934; 121.936 
 12.9   subdivisions 1, 2, and 3; 121.937; 121.94; 121.941; 121.942; 
 12.10  121.943; 123.33, subdivisions 10, 14, 15, and 16; 123.35, 
 12.11  subdivision 14; 123.352; 123.36, subdivisions 2, 3, 4, 4a, 6, 8, 
 12.12  9, and 12; 123.40, subdivisions 4 and 6; 123.61; 123.67; 
 12.13  123.709; 123.744; 124.615; 124.62; 124.64; 124.645; 124.67; 
 12.14  124.68; 124.69; 124.79; 125.12, subdivisions 3a and 4a; 125.17, 
 12.15  subdivisions 2a and 3a; 126.09; 126.111; 126.112; 126.20, 
 12.16  subdivision 4; 126.24; and 126.268, are repealed. 
 12.17     (b) Minnesota Statutes 1992, section 121.11, subdivision 
 12.18  15, is repealed. 
 12.19     (c) Minnesota Statutes 1992, sections 120.101, subdivision 
 12.20  5b; 121.11, subdivision 16; 121.585, subdivision 3; 124.19, 
 12.21  subdivisions 1, subdivision 1b, 6, and 7; 126.02; 126.025; 
 12.22  126.031; 126.06; 126.08; 126.12, subdivision 2; 126.662; 
 12.23  126.663; 126.664; 126.665; 126.666; 126.67; 126.68; 126A.04; 
 12.24  126A.05; 126A.07; 126A.08; 126A.09; 126A.10; 126A.11; and 
 12.25  126A.12, are repealed. 
 12.26     (d) Minnesota Statutes 1992, sections 120.101, subdivision 
 12.27  5b; 121.585, subdivision 3; 124.19, subdivisions 1, 6, and 7, 
 12.28  are repealed. 
 12.29     Sec. 14.  Laws 1993, chapter 224, article 12, section 39, 
 12.30  as amended by Laws 1994, chapter 647, article 12, section 35, 
 12.31  and article 8, section 32, and Laws 1995, First Special Session 
 12.32  chapter 3, article 8, section 15, is amended to read: 
 12.33     Sec. 39.  [REPEALER.] 
 12.34     (a) Minnesota Rules, parts 3500.0500; 3500.0600, subparts 1 
 12.35  and 2; 3500.0605; 3500.0800; 3500.1090; 3500.1800; 3500.2950; 
 12.36  3500.3100, subparts 1 to 3; 3500.3500; 3500.3600; 3500.4400; 
 13.1   3510.2200; 3510.2300; 3510.2400; 3510.2500; 3510.2600; 
 13.2   3510.6200; 3520.0200; 3520.0300; 3520.0600; 3520.1000; 
 13.3   3520.1200; 3520.1300; 3520.1800; 3520.2700; 3520.3802; 
 13.4   3520.3900; 3520.4500; 3520.4620; 3520.4630; 3520.4640; 
 13.5   3520.4680; 3520.4750; 3520.4761; 3520.4811; 3520.4831; 
 13.6   3520.4910; 3520.5330; 3520.5340; 3520.5370; 3520.5461; 
 13.7   3525.2850; 3530.0300; 3530.0600; 3530.0700; 3530.0800; 
 13.8   3530.1100; 3530.1300; 3530.1400; 3530.1600; 3530.1700; 
 13.9   3530.1800; 3530.1900; 3530.2000; 3530.2100; 3530.2800; 
 13.10  3530.2900; 3530.3100, subparts 2 to 4; 3530.3200, subparts 1 to 
 13.11  5; 3530.3400, subparts 1, 2, and 4 to 7; 3530.3500; 3530.3600; 
 13.12  3530.3900; 3530.4000; 3530.4100; 3530.5500; 3530.5700; 
 13.13  3530.6100; 3535.0800; 3535.1000; 3535.1400; 3535.1600; 
 13.14  3535.1800; 3535.1900; 3535.2100; 3535.2200; 3535.2600; 
 13.15  3535.2900; 3535.3100; 3535.3500; 3535.9930; 3535.9940; 
 13.16  3535.9950; 3540.0600; 3540.0700; 3540.0800; 3540.0900; 
 13.17  3540.1000; 3540.1100; 3540.1200; 3540.1300; 3540.1700; 
 13.18  3540.1800; 3540.1900; 3540.2000; 3540.2100; 3540.2200; 
 13.19  3540.2300; 3540.2400; 3540.2800; 3540.2900; 3540.3000; 
 13.20  3540.3100; 3540.3200; 3540.3300; 3540.3400; 3545.1000; 
 13.21  3545.1100; 3545.1200; 3545.2300; 3545.2700; 3545.3000; 
 13.22  3545.3002; 3545.3004; 3545.3005; 3545.3014; 3545.3022; 
 13.23  3545.3024; 8700.4200; 8700.6410; 8700.6800; 8700.7100; 
 13.24  8700.9000; 8700.9010; 8700.9020; and 8700.9030, are repealed. 
 13.25     (b) Minnesota Rules, parts 3520.1600; 3520.2400; 3520.2500; 
 13.26  3520.2600; 3520.2800; 3520.2900; 3520.3000; 3520.3100; 
 13.27  3520.3200; 3520.3400; 3520.3500; 3520.3680; 3520.3701; 
 13.28  3520.3801; 3520.4001; 3520.4100; 3520.4201; 3520.4301; 
 13.29  3520.4400; 3520.4510; 3520.4531; 3520.4540; 3520.4550; 
 13.30  3520.4560; 3520.4570; 3520.4600; 3520.4610; 3520.4650; 
 13.31  3520.4670; 3520.4701; 3520.4711; 3520.4720; 3520.4731; 
 13.32  3520.4741; 3520.4801; 3520.4840; 3520.4850; 3520.4900; 
 13.33  3520.4930; 3520.4980; 3520.5000; 3520.5010; 3520.5111; 
 13.34  3520.5120; 3520.5141; 3520.5151; 3520.5160; 3520.5171; 
 13.35  3520.5180; 3520.5190; 3520.5200; 3520.5220; 3520.5230; 
 13.36  3520.5300; 3520.5310; 3520.5361; 3520.5380; 3520.5401; 
 14.1   3520.5450; 3520.5471; 3520.5481; 3520.5490; 3520.5500; 
 14.2   3520.5510; 3520.5520; 3520.5531; 3520.5551; 3520.5560; 
 14.3   3520.5570; 3520.5580; 3520.5600; 3520.5611; 3520.5700; 
 14.4   3520.5710; 3520.5900; 3520.5910; 3520.5920; 3530.6500; 
 14.5   3530.6600; 3530.6700; 3530.6800; 3530.6900; 3530.7000; 
 14.6   3530.7100; 3530.7200; 3530.7300; 3530.7400; 3530.7500; 
 14.7   3530.7600; 3530.7700; and 3530.7800, are repealed. 
 14.8      (c) Minnesota Rules, parts 3500.1400; 3500.3700; 3510.0300; 
 14.9   3510.8100; 3510.8200; 3510.8300; 3510.8400; chapters 3515, 
 14.10  3517.3150; 3517.3170; 3517.3420; 3517.3450; 3517.3500; 
 14.11  3517.3650; 3517.8500; 3517.8600, and 3560, are repealed. 
 14.12     (d) Minnesota Rules, parts 3500.0710; 3500.1060; 3500.1075; 
 14.13  3500.1100; 3500.1150; 3500.1200, subpart 2; 3500.1500, subpart 
 14.14  2; 3500.1600; 3500.1900; 3500.2000; 3500.2020; 3500.2100; 
 14.15  3500.2900; 3500.5010; 3500.5020; 3500.5030; 3500.5040; 
 14.16  3500.5050; 3500.5060; 3500.5070; 3505.2700; 3505.2800; 
 14.17  3505.2900; 3505.3000; 3505.3100; 3505.3200; 3505.3300; 
 14.18  3505.3400; 3505.3500; 3505.3600; 3505.3700; 3505.3800; 
 14.19  3505.3900; 3505.4000; 3505.4100; 3505.4200; 3505.4400; 
 14.20  3505.4500; 3505.4600; 3505.4700; 3505.5100; 8700.2900; 
 14.21  8700.3000; 8700.3110; 8700.3120; 8700.3200; 8700.3300; 
 14.22  8700.3400; 8700.3500; 8700.3510; 8700.3600; 8700.3700; 
 14.23  8700.3810; 8700.3900; 8700.4000; 8700.4100; 8700.4300; 
 14.24  8700.4400; 8700.4500; 8700.4600; 8700.4710; 8700.4800; 
 14.25  8700.4901; 8700.4902; 8700.5100; 8700.5200; 8700.5300; 
 14.26  8700.5310; 8700.5311; 8700.5500; 8700.5501; 8700.5502; 
 14.27  8700.5503; 8700.5504; 8700.5505; 8700.5506; 8700.5507; 
 14.28  8700.5508; 8700.5509; 8700.5510; 8700.5511; 8700.5512; 
 14.29  8700.5800; 8700.6310; 8700.6900; 8700.7010; 8700.7700; 
 14.30  8700.7710; 8700.8000; 8700.8010; 8700.8020; 8700.8030; 
 14.31  8700.8040; 8700.8050; 8700.8060; 8700.8070; 8700.8080; 
 14.32  8700.8090; 8700.8110; 8700.8120; 8700.8130; 8700.8140; 
 14.33  8700.8150; 8700.8160; 8700.8170; 8700.8180; 8700.8190; 
 14.34  8750.0200; 8750.0220; 8750.0240; 8750.0260; 8750.0300; 
 14.35  8750.0320; 8750.0330; 8750.0350; 8750.0370; 8750.0390; 
 14.36  8750.0410; 8750.0430; 8750.0460; 8750.0500; 8750.0520; 
 15.1   8750.0600; 8750.0620; 8750.0700; 8750.0720; 8750.0740; 
 15.2   8750.0760; 8750.0780; 8750.0800; 8750.0820; 8750.0840; 
 15.3   8750.0860; 8750.0880; 8750.0890; 8750.0900; 8750.0920; 
 15.4   8750.1000; 8750.1100; 8750.1120; 8750.1200; 8750.1220; 
 15.5   8750.1240; 8750.1260; 8750.1280; 8750.1300; 8750.1320; 
 15.6   8750.1340; 8750.1360; 8750.1380; 8750.1400; 8750.1420; 
 15.7   8750.1440; 8750.1500; 8750.1520; 8750.1540; 8750.1560; 
 15.8   8750.1580; 8750.1600; 8750.1700; 8750.1800; 8750.1820; 
 15.9   8750.1840; 8750.1860; 8750.1880; 8750.1900; 8750.1920; 
 15.10  8750.1930; 8750.1940; 8750.1960; 8750.1980; 8750.2000; 
 15.11  8750.2020; 8750.2040; 8750.2060; 8750.2080; 8750.2100; 
 15.12  8750.2120; 8750.2140; 8750.4000; 8750.4100; 8750.4200; 
 15.13  8750.9000; 8750.9100; 8750.9200; 8750.9300; 8750.9400; 
 15.14  8750.9500; 8750.9600; and 8750.9700, are repealed. 
 15.15     (e) Minnesota Rules, parts 3510.0100; 3510.0200; 3510.0400; 
 15.16  3510.0500; 3510.0600; 3510.0800; 3510.1100; 3510.1200; 
 15.17  3510.1300; 3510.1400; 3510.1500; 3510.1600; 3510.2800; 
 15.18  3510.2900; 3510.3000; 3510.3200; 3510.3400; 3510.3500; 
 15.19  3510.3600; 3510.3700; 3510.3800; 3510.7200; 3510.7300; 
 15.20  3510.7400; 3510.7500; 3510.7600; 3510.7700; 3510.7900; 
 15.21  3510.8000; 3510.8500; 3510.8600; 3510.8700; 3510.9000; 
 15.22  3510.9100; 3517.0100; and 3517.0120, are repealed. 
 15.23     (f) Minnesota Rules, parts 3500.1200, subpart 1; and 
 15.24  3500.1500, subpart 1, are repealed. 
 15.25     Sec. 15.  Laws 1993, chapter 224, article 12, section 41, 
 15.26  as amended by Laws 1995, First Special Session chapter 3, 
 15.27  article 8, section 16, is amended to read: 
 15.28     Sec. 41.  [EFFECTIVE DATE.] 
 15.29     Sections 22 to 25 are effective July 1, 1995. 
 15.30     Section 32, paragraph (b), is effective July 1, 1995.  
 15.31  Section 32, paragraph (c), is effective August 1, 1996.  Section 
 15.32  32, paragraph (d), is effective June 30, 1999. 
 15.33     Section 39, paragraph (b), is effective August 1, 1994.  
 15.34  Section 39, paragraph (c), is effective July 1, 1995.  Section 
 15.35  39, paragraph (d), is effective August 1, 1996.  Section 39, 
 15.36  paragraph (e), is effective July 1, 1996.  Section 39, paragraph 
 16.1   (f), is effective June 30, 1999. 
 16.2      Sec. 16.  [TRANSPORTATION AND CAPITAL EXPENDITURE FUNDS; 
 16.3   DISSOLUTION.] 
 16.4      Effective July 1, 1996, the transportation fund and the 
 16.5   capital expenditure fund of each school district or other unit 
 16.6   reporting under Minnesota Statutes, section 121.908, is 
 16.7   dissolved.  The June 30, 1996, balances of the unreserved 
 16.8   transportation fund and reserved for bus purchase account shall 
 16.9   be transferred to the general fund unreserved balance.  The June 
 16.10  30, 1996, balance of the capital expenditure facilities account 
 16.11  and capital expenditure equipment account shall be transferred 
 16.12  to the general fund reserved for operating capital account.  The 
 16.13  June 30, 1996, balance of the reserved for health and safety 
 16.14  account shall be transferred to the general fund reserved for 
 16.15  health and safety account.  The June 30, 1996, balance of the 
 16.16  reserved for disabled accessibility account shall be transferred 
 16.17  to the general fund reserved for disabled accessibility account. 
 16.18  Effective July 1, 1996, all revenues and expenditures formerly 
 16.19  accounted for in the capital expenditure fund and the 
 16.20  transportation fund shall be accounted for in the general fund. 
 16.21     Sec. 17.  [REPEALER.] 
 16.22     Section 8 and Minnesota Statutes 1994, section 124A.03, 
 16.23  subdivision 3b, are repealed. 
 16.24     Sec. 18.  [EFFECTIVE DATE.] 
 16.25     Section 17 is effective for revenue for fiscal year 2002. 
 16.26                             ARTICLE 2
 16.27                          SPECIAL PROGRAMS
 16.28     Section 1.  Minnesota Statutes 1995 Supplement, section 
 16.29  120.17, subdivision 3b, is amended to read: 
 16.30     Subd. 3b.  [PROCEDURES FOR DECISIONS.] Every district shall 
 16.31  utilize at least the following procedures for decisions 
 16.32  involving identification, assessment, and educational placement 
 16.33  of children with a disability: 
 16.34     (a) Parents and guardians shall receive prior written 
 16.35  notice of:  
 16.36     (1) any proposed formal educational assessment or proposed 
 17.1   denial of a formal educational assessment of their child; 
 17.2      (2) a proposed placement of their child in, transfer from 
 17.3   or to, or denial of placement in a special education program; or 
 17.4      (3) the proposed provision, addition, denial or removal of 
 17.5   special education services for their child; 
 17.6      (b) The district shall not proceed with the initial formal 
 17.7   assessment of a child, the initial placement of a child in a 
 17.8   special education program, or the initial provision of special 
 17.9   education services for a child without the prior written consent 
 17.10  of the child's parent or guardian.  The refusal of a parent or 
 17.11  guardian to consent may be overridden by the decision in a 
 17.12  hearing held pursuant to clause (e) at the district's 
 17.13  initiative; 
 17.14     (c) Parents and guardians shall have an opportunity to meet 
 17.15  with appropriate district staff in at least one conciliation 
 17.16  conference, mediation, or other method of alternative dispute 
 17.17  resolution that the parties agree to, if they object to any 
 17.18  proposal of which they are notified pursuant to clause (a).  The 
 17.19  conciliation process or other form of alternative dispute 
 17.20  resolution shall not be used to deny or delay a parent or 
 17.21  guardian's right to a due process hearing.  If the parent or 
 17.22  guardian refuses efforts by the district to conciliate the 
 17.23  dispute with the school district, the requirement of an 
 17.24  opportunity for conciliation or other alternative dispute 
 17.25  resolution shall be deemed to be satisfied.  Notwithstanding 
 17.26  other law, in any proceeding following a conciliation 
 17.27  conference, the school district must not offer a conciliation 
 17.28  conference memorandum into evidence, except for any portions 
 17.29  that describe the district's final proposed offer of service.  
 17.30  Otherwise, with respect to forms of dispute resolution, 
 17.31  mediation, or conciliation, Minnesota Rule of Evidence 408 
 17.32  applies.  The department of children, families, and learning may 
 17.33  reimburse the districts or directly pay the costs of lay 
 17.34  advocates, not to exceed $150 per dispute, used in conjunction 
 17.35  with alternative dispute resolution. 
 17.36     (d) The commissioner shall establish a mediation process to 
 18.1   assist parents, school districts, or other parties to resolve 
 18.2   disputes arising out of the identification, assessment, or 
 18.3   educational placement of children with a disability.  The 
 18.4   mediation process must be offered as an informal alternative to 
 18.5   the due process hearing provided under clause (e), but must not 
 18.6   be used to deny or postpone the opportunity of a parent or 
 18.7   guardian to obtain a due process hearing. 
 18.8      (e) Parents, guardians, and the district shall have an 
 18.9   opportunity to obtain an impartial due process hearing initiated 
 18.10  and conducted by and in the school district responsible for 
 18.11  assuring that an appropriate program is provided in accordance 
 18.12  with state board rules, if the parent or guardian continues to 
 18.13  object to:  
 18.14     (1) a proposed formal educational assessment or proposed 
 18.15  denial of a formal educational assessment of their child; 
 18.16     (2) the proposed placement of their child in, or transfer 
 18.17  of their child to a special education program; 
 18.18     (3) the proposed denial of placement of their child in a 
 18.19  special education program or the transfer of their child from a 
 18.20  special education program; 
 18.21     (4) the proposed provision or addition of special education 
 18.22  services for their child; or 
 18.23     (5) the proposed denial or removal of special education 
 18.24  services for their child. 
 18.25     Within five business days after the request for a hearing, 
 18.26  or as directed by the hearing officer, the objecting party shall 
 18.27  provide the other party with a brief written statement of 
 18.28  particulars of the objection, the reasons for the objection, and 
 18.29  the specific remedies sought.  The other party shall provide the 
 18.30  objecting party with a written response to the statement of 
 18.31  objections within five business days of receipt of the statement.
 18.32     The hearing shall take place before an impartial hearing 
 18.33  officer mutually agreed to by the school board and the parent or 
 18.34  guardian.  If the school board and the parent or guardian are 
 18.35  unable to agree on a Within three business days of the request 
 18.36  for the hearing, if the parties have not agreed on the hearing 
 19.1   officer, the school board shall request the commissioner to 
 19.2   appoint a hearing officer.  The school board shall include with 
 19.3   request the name of the person requesting the hearing, the name 
 19.4   of the student, the attorneys involved, if any, and the date the 
 19.5   hearing was requested.  The hearing officer shall not be a 
 19.6   school board member or employee of the school district where the 
 19.7   child resides or of the child's school district of residence, an 
 19.8   employee of any other public agency involved in the education or 
 19.9   care of the child, or any person with a personal or professional 
 19.10  interest which would conflict with the person's objectivity at 
 19.11  the hearing.  A person who otherwise qualifies as a hearing 
 19.12  officer is not an employee of the district solely because the 
 19.13  person is paid by the district to serve as a hearing officer.  
 19.14  If the hearing officer requests an independent educational 
 19.15  assessment of a child, the cost of the assessment shall be at 
 19.16  district expense.  The proceedings shall be recorded and 
 19.17  preserved, at the expense of the school district, pending 
 19.18  ultimate disposition of the action. 
 19.19     (f) The decision of the hearing officer pursuant to clause 
 19.20  (e) shall be rendered not more than 45 calendar days from the 
 19.21  date of the receipt of the request for the hearing, except that 
 19.22  hearing officers are encouraged to accelerate the timeline to 30 
 19.23  days for children birth through two whose needs change rapidly 
 19.24  and require quick resolution of complaints.  A hearing officer 
 19.25  may not grant specific extensions of time beyond the 45-day 
 19.26  period at the request of either party unless requested by either 
 19.27  party for good cause shown.  Continuances are to be used 
 19.28  sparingly.  The decision of the hearing officer shall be binding 
 19.29  on all parties unless appealed to the hearing review 
 19.30  officer commissioner by the parent,; guardian, or the; 
 19.31  school board of the district where the child resides pursuant to 
 19.32  clause (g); or in the case of children birth through two, the 
 19.33  county board. 
 19.34     The local decision shall: 
 19.35     (1) be in writing; 
 19.36     (2) state the controlling facts upon which the decision is 
 20.1   made in sufficient detail to apprise the parties and the hearing 
 20.2   review officer of the basis and reason for the decision; and 
 20.3      (3) state whether the special education program or special 
 20.4   education services appropriate to the child's needs can be 
 20.5   reasonably provided within the resources available to the 
 20.6   responsible district or districts; 
 20.7      (4) state the amount and source of any additional district 
 20.8   expenditure necessary to implement the decision; and 
 20.9      (5) be based on the standards set forth in subdivision 3a 
 20.10  and the rules of the state board. 
 20.11     (g) Any local decision issued pursuant to clauses (e) and 
 20.12  (f) may be appealed to the hearing review officer commissioner 
 20.13  within 30 calendar days of receipt of that written decision, by 
 20.14  the parent, guardian, or the school board of the district 
 20.15  responsible for assuring that an appropriate program is provided 
 20.16  in accordance with state board rules.  The appealing party shall 
 20.17  note the specific aspects of the hearing decision being appealed.
 20.18     If the decision is appealed, a written transcript of the 
 20.19  hearing shall be made by the school district and shall be 
 20.20  accessible provided by the district to the parties involved and 
 20.21  the hearing review officer within five calendar days of the 
 20.22  filing of the appeal.  The hearing review officer shall conduct 
 20.23  an appellate review and issue a final independent decision based 
 20.24  on an impartial review of the local decision and the entire 
 20.25  record within 30 calendar days after the filing of the appeal.  
 20.26  The hearing review officer shall seek additional evidence if 
 20.27  necessary and may afford the parties an opportunity for written 
 20.28  or oral argument; provided any hearing held to seek additional 
 20.29  evidence shall be an impartial due process hearing but shall be 
 20.30  deemed not to be a contested case hearing for purposes of 
 20.31  chapter 14.  The hearing review officer may grant specific 
 20.32  extensions of time beyond the 30-day period at the request of 
 20.33  any party. 
 20.34     The final decision shall: 
 20.35     (1) be in writing; 
 20.36     (2) include findings and conclusions; and 
 21.1      (3) be based upon the standards set forth in subdivision 3a 
 21.2   and in the rules of the state board. 
 21.3      (h) The decision of the hearing review officer shall be 
 21.4   final unless appealed by the parent or guardian or school board 
 21.5   to the Minnesota court of appeals or federal district court as 
 21.6   provided by federal law.  The judicial review shall be in 
 21.7   accordance with chapter 14.  
 21.8      (i) The commissioner of children, families, and learning 
 21.9   shall select an individual who has the qualifications enumerated 
 21.10  in this paragraph to serve as the hearing review officer: 
 21.11     (1) the individual must be knowledgeable and impartial; 
 21.12     (2) the individual must not have a personal interest in or 
 21.13  specific involvement with the student who is a party to the 
 21.14  hearing; 
 21.15     (3) the individual must not have been employed as an 
 21.16  administrator by the district that is a party to the hearing; 
 21.17     (4) the individual must not have been involved in the 
 21.18  selection of the administrators of the district that is a party 
 21.19  to the hearing; 
 21.20     (5) the individual must not have a personal, economic, or 
 21.21  professional interest in the outcome of the hearing other than 
 21.22  the proper administration of the federal and state laws, rules, 
 21.23  and policies; 
 21.24     (6) the individual must not have substantial involvement in 
 21.25  the development of a state or local policy or procedures that 
 21.26  are challenged in the appeal; and 
 21.27     (7) the individual is not a current employee or board 
 21.28  member of a Minnesota public school district, education 
 21.29  district, intermediate unit or regional education agency, the 
 21.30  department of children, families, and learning, the state board 
 21.31  of education, or a parent advocacy organization or group; and 
 21.32     (8) the individual is not a current employee or board 
 21.33  member of a Minnesota parent advocacy organization or group.  
 21.34     (j) In all appeals, the parent or guardian of the pupil 
 21.35  with a disability or the district that is a party to the hearing 
 21.36  may challenge the impartiality or competence of the proposed 
 22.1   hearing review officer by applying to the hearing review officer.
 22.2      (k) Pending the completion of proceedings pursuant to this 
 22.3   subdivision, unless the district and the parent or guardian of 
 22.4   the child agree otherwise, the child shall remain in the child's 
 22.5   current educational placement and shall not be denied initial 
 22.6   admission to school. 
 22.7      (l) The child's school district of residence, a resident 
 22.8   district, and providing district shall receive notice of and may 
 22.9   be a party to any hearings or appeals under this subdivision. 
 22.10     (m) A school district is not liable for harmless technical 
 22.11  violations of this subdivision or rules implementing this 
 22.12  subdivision if the school district can demonstrate on a 
 22.13  case-by-case basis that the violations did not harm the 
 22.14  student's educational progress or the parent or guardian's right 
 22.15  to notice, participation, or due process. 
 22.16     (n) Within ten calendar days after appointment, the hearing 
 22.17  officer shall schedule and hold a prehearing conference.  At 
 22.18  that conference, or later, the hearing officer may take any 
 22.19  appropriate action that a court might take under Rule 16 of 
 22.20  Minnesota Rules of Civil Procedure including, but not limited 
 22.21  to, scheduling, jurisdiction, and listing witnesses including 
 22.22  expert witnesses. 
 22.23     (o) A hearing officer or hearing review officer appointed 
 22.24  under this subdivision shall be deemed to be an employee of the 
 22.25  state under section 3.732 for the purposes of section 3.736 only.
 22.26     (p) In order to be eligible for selection, hearing officers 
 22.27  and hearing review officers shall participate in training and 
 22.28  follow procedures as designated by the commissioner. 
 22.29     (q) Irrelevant, immaterial, or repetitive evidence should 
 22.30  be excluded by the hearing officer.  When a hearing will be 
 22.31  expedited, and the interests of the parties will not be 
 22.32  prejudiced substantially, the hearing officer may allow any part 
 22.33  of the evidence to be submitted in verified written form as long 
 22.34  as the individual providing the evidence is available for 
 22.35  cross-examination purposes. 
 22.36     Sec. 2.  Minnesota Statutes 1994, section 120.1701, 
 23.1   subdivision 10, is amended to read: 
 23.2      Subd. 10.  [PAYMENT FOR SERVICES.] Core early intervention 
 23.3   services shall be provided at public expense with no cost to 
 23.4   parents.  Parents shall be requested to assist in the cost of 
 23.5   additional early intervention services by using third-party 
 23.6   payment sources and applying for available resources.  If a 
 23.7   parent chooses not to access these resources, additional early 
 23.8   intervention services may not be provided.  Payment structures 
 23.9   permitted under state law shall be used to pay for additional 
 23.10  early intervention services.  Parental financial responsibility 
 23.11  shall be clearly defined in the individualized family service 
 23.12  plan.  A parent's inability to pay shall not prohibit a child 
 23.13  from receiving needed early intervention services. 
 23.14     Sec. 3.  Minnesota Statutes 1995 Supplement, section 
 23.15  120.1701, subdivision 20, is amended to read: 
 23.16     Subd. 20.  [DUE PROCESS HEARINGS.] By July 1, 1994, the 
 23.17  departments of children, families, and learning, health, and 
 23.18  human services shall develop procedures for hearings.  The 
 23.19  procedures for due process hearings and appeals shall be the 
 23.20  same as those in section 120.17, subdivision 3b.  
 23.21     Sec. 4.  Minnesota Statutes 1995 Supplement, section 
 23.22  124.273, subdivision 1c, is amended to read: 
 23.23     Subd. 1c.  [ADJUSTED LEP BASE REVENUE.] (a) A district's 
 23.24  adjusted limited English proficiency programs base revenue for 
 23.25  fiscal year 1996 and later equals the product of: 
 23.26     (1) the district's base revenue for limited English 
 23.27  proficiency programs under this section and section 124.321, 
 23.28  times 
 23.29     (2) the ratio of: 
 23.30     (i) the greater of 20 or the number of pupils of limited 
 23.31  English proficiency enrolled in the district during the current 
 23.32  fiscal year to 
 23.33     (ii) the greater of 20 or the number of pupils of limited 
 23.34  English proficiency enrolled in the district during fiscal the 
 23.35  base year 1995. 
 23.36     (b) For the purposes of this section, the base year for 
 24.1   fiscal year 1996 is fiscal year 1995.  The base year for later 
 24.2   fiscal years is the second fiscal year preceding the fiscal year 
 24.3   for which aid shall be paid.  The current year is the fiscal 
 24.4   year for which aid shall be paid. 
 24.5      (c) For the purposes of this section, a teacher includes 
 24.6   nonlicensed personnel who provide direct instruction to students 
 24.7   of limited English proficiency under the supervision of a 
 24.8   licensed teacher. 
 24.9      Sec. 5.  Minnesota Statutes 1995 Supplement, section 
 24.10  124.273, subdivision 1d, is amended to read: 
 24.11     Subd. 1d.  [LEP BASE REVENUE.] The limited English 
 24.12  proficiency programs base revenue equals the sum of the 
 24.13  following amounts, computed using fiscal base year 1995 data:  
 24.14     (1) 68 percent of the salaries paid salary of one full-time 
 24.15  equivalent teacher for each 40 pupils of limited English 
 24.16  proficiency program teachers enrolled, or 68 percent of the 
 24.17  salary of one-half of a full-time teacher in a district with 20 
 24.18  or fewer pupils of limited English proficiency enrolled; and 
 24.19     (2) for supplies and equipment purchased or rented for use 
 24.20  in the instruction of pupils of limited English proficiency an 
 24.21  amount equal to 47 percent of the sum actually spent by the 
 24.22  district but not to exceed an average of $47 in any one school 
 24.23  year for each pupil of limited English proficiency receiving 
 24.24  instruction. 
 24.25     Sec. 6.  Minnesota Statutes 1994, section 124.273, is 
 24.26  amended by adding a subdivision to read: 
 24.27     Subd. 1f.  [STATE TOTAL LEP REVENUE.] (a) The state total 
 24.28  limited English proficiency programs revenue for fiscal year 
 24.29  1996 equals $12,290,000.  The state total limited English 
 24.30  proficiency programs revenue for fiscal year 1997 equals 
 24.31  $13,674,000.  
 24.32     (b) The state total limited English proficiency programs 
 24.33  revenue for later fiscal years equals: 
 24.34     (1) the state total limited English proficiency programs 
 24.35  revenue for the preceding fiscal year; times 
 24.36     (2) the program growth factor under section 124.3201, 
 25.1   subdivision 1; times 
 25.2      (3) the ratio of the state total number of pupils with 
 25.3   limited English proficiency for the current fiscal year to the 
 25.4   state total number of pupils with limited English proficiency 
 25.5   for the preceding fiscal year. 
 25.6      Sec. 7.  Minnesota Statutes 1994, section 124.273, is 
 25.7   amended by adding a subdivision to read: 
 25.8      Subd 1g.  [SCHOOL DISTRICT LEP REVENUE.] (a) A school 
 25.9   district's limited English proficiency programs revenue for 
 25.10  fiscal year 1996 and later equals the state total limited 
 25.11  English proficiency programs revenue, minus the amount 
 25.12  determined under paragraph (b), times the ratio of the 
 25.13  district's adjusted limited English proficiency programs base 
 25.14  revenue to the state total adjusted limited English proficiency 
 25.15  programs base revenue. 
 25.16     (b) Notwithstanding paragraph (a), if the limited English 
 25.17  proficiency programs base revenue for a district equals zero, 
 25.18  the limited English proficiency programs revenue equals the sum 
 25.19  of the following amounts, computed using current year data: 
 25.20     (1) 68 percent of the salary of one full-time equivalent 
 25.21  teacher for each 40 pupils of limited English proficiency 
 25.22  enrolled, or 68 percent of the salary of one-half of a full-time 
 25.23  teacher in a district with 20 or fewer pupils of limited English 
 25.24  proficiency enrolled; and 
 25.25     (2) for supplies and equipment purchased or rented for use 
 25.26  in the instruction of pupils of limited English proficiency an 
 25.27  amount equal to 47 percent of the sum actually spent by the 
 25.28  district but not to exceed an average of $47 in any one school 
 25.29  year for each pupil of limited English proficiency receiving 
 25.30  instruction. 
 25.31     Sec. 8.  Minnesota Statutes 1994, section 124.311, 
 25.32  subdivision 5, is amended to read: 
 25.33     Subd. 5.  [REVENUE AMOUNT.] Assurance of mastery revenue is 
 25.34  the sum of state and district money.  The sum may equal up to 
 25.35  $45 for fiscal year 1991 and thereafter times the number 
 25.36  of actual fund balance pupil units in kindergarten through grade 
 26.1   8 in the district.  The district shall determine the amount of 
 26.2   money it will provide and the state shall provide an equal 
 26.3   amount of money. 
 26.4      Sec. 9.  Minnesota Statutes 1995 Supplement, section 
 26.5   124.323, subdivision 1, is amended to read: 
 26.6      Subdivision 1.  [DEFINITIONS.] In this section, the 
 26.7   definitions in this subdivision apply. 
 26.8      (a) "Unreimbursed special education cost" means the sum of 
 26.9   the following: 
 26.10     (1) expenditures for teachers' salaries, contracted 
 26.11  services, supplies, and equipment eligible for revenue under 
 26.12  sections 124.3201, 124.3202, and 124.321; plus 
 26.13     (2) expenditures for tuition bills received under section 
 26.14  120.17 for services eligible for revenue under sections 
 26.15  124.3201, subdivision 2, and 124.3202, subdivision 1; minus 
 26.16     (3) revenue for teachers' salaries, contracted services, 
 26.17  supplies, and equipment under sections 124.3201, 124.3202, and 
 26.18  124.321; minus 
 26.19     (4) tuition receipts under section 120.17 for services 
 26.20  eligible for revenue under sections 124.3201, subdivision 2, and 
 26.21  124.3202, subdivision 1. 
 26.22     (b) "General revenue," for fiscal year 1996, means the sum 
 26.23  of the general education revenue according to section 124A.22, 
 26.24  subdivision 1, as adjusted according to section 124A.036, 
 26.25  subdivision 5, plus the total referendum revenue according to 
 26.26  section 124A.03, subdivision 1e.  For fiscal years 1997 and 
 26.27  later, "general revenue" means the sum of the general education 
 26.28  revenue according to section 124A.22, subdivision 1, as adjusted 
 26.29  according to section 124A.036, subdivision 5, plus the total 
 26.30  referendum revenue minus transportation sparsity revenue minus 
 26.31  total operating capital revenue. 
 26.32     Sec. 10.  Minnesota Statutes 1995 Supplement, section 
 26.33  124.574, subdivision 2g, is amended to read: 
 26.34     Subd. 2g.  [SCHOOL DISTRICT SECONDARY VOCATIONAL-DISABLED 
 26.35  REVENUE.] (a) A school district's secondary vocational-disabled 
 26.36  revenue for fiscal year 1996 and later equals the state total 
 27.1   secondary vocational-disabled revenue, minus the amount 
 27.2   determined under paragraph (b), times the ratio of the 
 27.3   district's adjusted secondary vocational-disabled base revenue 
 27.4   to the state total adjusted secondary vocational-disabled base 
 27.5   revenue. 
 27.6      (b) Notwithstanding paragraph (a), if the secondary 
 27.7   vocational-disabled base revenue for a district equals zero and 
 27.8   no district residents were enrolled in secondary 
 27.9   vocational-disabled programs during the base year, the secondary 
 27.10  vocational-disabled revenue equals the amount computed according 
 27.11  to subdivision 2d using current year data. 
 27.12     Sec. 11.  [EFFECTIVE DATE.] 
 27.13     Sections 4 to 7, 9, and 10 are effective July 1, 1995. 
 27.14                             ARTICLE 3
 27.15                         COMMUNITY PROGRAMS
 27.16     Section 1.  Minnesota Statutes 1994, section 121.8355, 
 27.17  subdivision 1, is amended to read: 
 27.18     Subdivision 1.  [ESTABLISHMENT.] (a) In order to qualify as 
 27.19  a family services collaborative, a minimum of one school 
 27.20  district, one county, and one public health entity, and one 
 27.21  community action entity must agree in writing to provide 
 27.22  coordinated family services and commit resources to an 
 27.23  integrated fund.  Collaboratives are expected to have broad 
 27.24  community representation, which may include other local 
 27.25  providers, including additional school districts, counties, and 
 27.26  public health entities, other municipalities, public libraries, 
 27.27  existing culturally specific community organizations, local 
 27.28  health organizations, private and nonprofit service providers, 
 27.29  child care providers, local foundations, community-based service 
 27.30  groups, businesses, local transit authorities or other 
 27.31  transportation providers, community action agencies under 
 27.32  section 268.53, senior citizen volunteer organizations, and 
 27.33  sectarian organizations that provide nonsectarian services. 
 27.34     (b) Community-based collaboratives composed of 
 27.35  representatives of schools, local businesses, local units of 
 27.36  government, parents, students, clergy, health and social 
 28.1   services providers, youth service organizations, and existing 
 28.2   culturally specific community organizations may plan and develop 
 28.3   services for children and youth.  A community-based 
 28.4   collaborative must agree to collaborate with county, school 
 28.5   district, community action and public health entities.  Their 
 28.6   services may include opportunities for children or youth to 
 28.7   improve child health and development, reduce barriers to 
 28.8   adequate school performance, improve family functioning, provide 
 28.9   community service, enhance self esteem, and develop general 
 28.10  employment skills. 
 28.11                             ARTICLE 4
 28.12                             FACILITIES
 28.13     Section 1.  Minnesota Statutes 1995 Supplement, section 
 28.14  124.2445, is amended to read: 
 28.15     124.2445 [PURCHASE OF CERTAIN EQUIPMENT.] 
 28.16     The board of a school district may issue certificates of 
 28.17  indebtedness or capital notes subject to the school district 
 28.18  debt limits to purchase vehicles other than school buses, 
 28.19  computers, telephone systems, cable equipment, photocopy and 
 28.20  office equipment, technological equipment for instruction, and 
 28.21  other capital equipment having an expected useful life at least 
 28.22  as long as the terms of the certificates or notes.  The 
 28.23  certificates or notes must be payable in not more than five 
 28.24  years and must be issued on the terms and in the manner 
 28.25  determined by the board.  The certificates or notes may be 
 28.26  issued by resolution and without the requirement for an 
 28.27  election.  The certificates or notes are general obligation 
 28.28  bonds for purposes of section 124.755.  A tax levy must be made 
 28.29  for the payment of the principal and interest on the 
 28.30  certificates or notes, in accordance with section 475.61, as in 
 28.31  the case of bonds.  That The sum of the tax levy levies under 
 28.32  this section and section 124.2455, for each year must not exceed 
 28.33  the amount of the district's total operating capital revenue for 
 28.34  the year the initial debt service levies are certified.  The 
 28.35  district's general education levy for each year must be reduced 
 28.36  by the amount of the tax levies for debt service certified for 
 29.1   each year for payment of the principal and interest on the 
 29.2   certificates or notes as required by section 475.61.  
 29.3      Sec. 2.  Minnesota Statutes 1995 Supplement, section 
 29.4   124.2455, is amended to read: 
 29.5      124.2455 [BONDS FOR CERTAIN CAPITAL FACILITIES.] 
 29.6      (a) In addition to other bonding authority, with approval 
 29.7   of the commissioner, a school district may issue general 
 29.8   obligation bonds for certain capital projects under this 
 29.9   section.  The bonds must be used only to make capital 
 29.10  improvements including: 
 29.11     (1) under section 124.243, subdivision 6, capital 
 29.12  expenditure facilities 124A.22, subdivision 11, total operating 
 29.13  capital revenue uses specified in clauses (4), (6), (7), (8), 
 29.14  (9), and (10); 
 29.15     (2) the cost of energy modifications; 
 29.16     (3) improving handicap accessibility to school buildings; 
 29.17  and 
 29.18     (4) bringing school buildings into compliance with life and 
 29.19  safety codes and fire codes.  
 29.20     (b) Before a district issues bonds under this subdivision, 
 29.21  it must publish notice of the intended projects, the amount of 
 29.22  the bond issue, and the total amount of district indebtedness.  
 29.23     (c) A bond issue tentatively authorized by the board under 
 29.24  this subdivision becomes finally authorized unless a petition 
 29.25  signed by more than 15 percent of the registered voters of the 
 29.26  school district is filed with the school board within 30 days of 
 29.27  the board's adoption of a resolution stating the board's 
 29.28  intention to issue bonds.  The percentage is to be determined 
 29.29  with reference to the number of registered voters in the school 
 29.30  district on the last day before the petition is filed with the 
 29.31  school board.  The petition must call for a referendum on the 
 29.32  question of whether to issue the bonds for the projects under 
 29.33  this section.  The approval of 50 percent plus one of those 
 29.34  voting on the question is required to pass a referendum 
 29.35  authorized by this section. 
 29.36     (d) The bonds may be issued in a principal amount, that 
 30.1   when combined with interest thereon, will be paid off with not 
 30.2   more than 50 percent of current and anticipated revenue for 
 30.3   capital facilities under this section or a successor section for 
 30.4   the current year plus projected revenue not greater than that of 
 30.5   the current year for the next ten years.  Once finally 
 30.6   authorized, the district must set aside the lesser of the amount 
 30.7   necessary to make the principal and interest payments or 50 
 30.8   percent of the current year's revenue for capital facilities 
 30.9   under this section or a successor section each year in a 
 30.10  separate account until all principal and interest on the bonds 
 30.11  is paid.  The district must annually transfer this amount from 
 30.12  its capital fund to the debt redemption fund.  The bonds must be 
 30.13  paid off within ten years of issuance.  The bonds must be issued 
 30.14  in compliance with chapter 475, except as otherwise provided in 
 30.15  this section.  A tax levy must be made for the payment of 
 30.16  principal and interest on the bonds in accordance with section 
 30.17  475.61.  The sum of the tax levies under this section and 
 30.18  section 124.2455, for each year must not exceed the amount of 
 30.19  the district's total operating capital revenue for the year the 
 30.20  initial debt service levies are certified.  The district's 
 30.21  general education levy for each year must be reduced by the 
 30.22  amount of the tax levies for debt service certified for each 
 30.23  year for payment of the principal and interest on the bonds.  
 30.24     (e) Notwithstanding paragraph (d), bonds issued by a 
 30.25  district within the first five years following voter approval of 
 30.26  a combination according to section 122.243, subdivision 2, bonds 
 30.27  may be issued in a principal amount, that when combined with 
 30.28  interest thereon, will be paid off with not more than 50 percent 
 30.29  of current and anticipated revenue for capital facilities under 
 30.30  this section or a successive section for the current year plus 
 30.31  projected revenue not greater than that of the current year for 
 30.32  the next 20 years must be paid off within 20 years of issuance.  
 30.33  All the other provisions and limitation of paragraph (d) apply. 
 30.34                             ARTICLE 5
 30.35                        EDUCATION EXCELLENCE
 30.36     Section 1.  Minnesota Statutes 1994, section 120.062, 
 31.1   subdivision 9, is amended to read: 
 31.2      Subd. 9.  [TRANSPORTATION.] (a) If requested by the parent 
 31.3   of a pupil, the nonresident district shall provide 
 31.4   transportation within the district.  The state shall pay 
 31.5   transportation aid to the district according to section 124.225. 
 31.6      The resident district is not required to provide or pay for 
 31.7   transportation between the pupil's residence and the border of 
 31.8   the nonresident district.  A parent may be reimbursed by the 
 31.9   nonresident district for the costs of transportation from the 
 31.10  pupil's residence to the border of the nonresident district if 
 31.11  the pupil is from a family whose income is at or below the 
 31.12  poverty level, as determined by the federal government.  The 
 31.13  reimbursement may not exceed the pupil's actual cost of 
 31.14  transportation or 15 cents per mile traveled, whichever is 
 31.15  less.  Reimbursement may not be paid for more than 250 miles per 
 31.16  week.  
 31.17     At the time a nonresident district notifies a parent or 
 31.18  guardian that an application has been accepted under subdivision 
 31.19  5 or 6, the nonresident district must provide the parent or 
 31.20  guardian with the following information regarding the 
 31.21  transportation of nonresident pupils under this section: 
 31.22     (1) a nonresident district may transport a pupil within the 
 31.23  pupil's resident district under this section only with the 
 31.24  approval of the resident district; and 
 31.25     (2) a parent or guardian of a pupil attending a nonresident 
 31.26  district under this section may appeal under section 123.39, 
 31.27  subdivision 6, the refusal of the resident district to allow the 
 31.28  nonresident district to transport the pupil within the resident 
 31.29  district section 123.39, subdivision 6. 
 31.30     (b) Notwithstanding paragraph (a) and section 124.225, 
 31.31  subdivision 8l, transportation provided by a nonresident 
 31.32  district between home and school for a pupil attending school 
 31.33  under this section is authorized for nonregular transportation 
 31.34  revenue under section 124.225, if the following criteria are met:
 31.35     (1) the school that the pupil was attending prior to 
 31.36  enrolling in the nonresident district under this section was 
 32.1   closed; 
 32.2      (2) the distance from the closed school to the next nearest 
 32.3   school in the district that the student could attend is at least 
 32.4   20 miles; 
 32.5      (3) the pupil's residence is at least 20 miles from any 
 32.6   school that the pupil could attend in the resident district; and 
 32.7      (4) the pupil's residence is closer to the school of 
 32.8   attendance in the nonresident district than to any school the 
 32.9   pupil could attend in the resident district. 
 32.10     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
 32.11  120.064, subdivision 4, is amended to read: 
 32.12     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
 32.13  authorize one or more licensed teachers under section 125.05, 
 32.14  subdivision 1, to operate a charter school subject to approval 
 32.15  by the state board of education.  If a school board elects not 
 32.16  to sponsor a charter school, the applicant may appeal the school 
 32.17  board's decision to the state board of education if two members 
 32.18  of the school board voted to sponsor the school.  If a school 
 32.19  district is closed under section 120.062 and the school board 
 32.20  elects not to sponsor a charter school, the school board shall 
 32.21  forward the applicant's request to the state board.  If the 
 32.22  state board authorizes the school, the state board shall sponsor 
 32.23  the school according to this section.  The school shall be 
 32.24  organized and operated as a cooperative under chapter 308A or 
 32.25  nonprofit corporation under chapter 317A.  
 32.26     (b) Before the operators may form and operate a school, the 
 32.27  sponsor must file an affidavit with the state board of education 
 32.28  stating its intent to authorize a charter school.  The affidavit 
 32.29  must state the terms and conditions under which the sponsor 
 32.30  would authorize a charter school.  The state board must approve 
 32.31  or disapprove the sponsor's proposed authorization within 60 
 32.32  days of receipt of the affidavit.  Failure to obtain state board 
 32.33  approval precludes a sponsor from authorizing the charter school 
 32.34  that was the subject of the affidavit.  
 32.35     (c) The operators authorized to organize and operate a 
 32.36  school shall hold an election for members of the school's board 
 33.1   of directors in a timely manner after the school is operating.  
 33.2   Any staff members who are employed at the school, including 
 33.3   teachers providing instruction under a contract with a 
 33.4   cooperative, and all parents of children enrolled in the school 
 33.5   may participate in the election.  Licensed teachers employed at 
 33.6   the school, including teachers providing instruction under a 
 33.7   contract with a cooperative, must be a majority of the members 
 33.8   of the board of directors.  A provisional board may operate 
 33.9   before the election of the school's board of directors.  Board 
 33.10  of director meetings must comply with section 471.705. 
 33.11     (d) The granting or renewal of a charter by a sponsoring 
 33.12  entity shall not be conditioned upon the bargaining unit status 
 33.13  of the employees of the school. 
 33.14     Sec. 3.  Minnesota Statutes 1995 Supplement, section 
 33.15  120.064, subdivision 4a, is amended to read: 
 33.16     Subd. 4a.  [CONVERSION OF EXISTING SCHOOLS.] A school board 
 33.17  may convert one or more of its existing schools to charter 
 33.18  schools under this section if 90 percent of the full-time 
 33.19  teachers at the school sign a petition seeking conversion.  The 
 33.20  conversion must occur at the beginning of an academic year. 
 33.21     Sec. 4.  Minnesota Statutes 1995 Supplement, section 
 33.22  123.3514, subdivision 6, is amended to read: 
 33.23     Subd. 6.  [FINANCIAL ARRANGEMENTS.] For a pupil enrolled in 
 33.24  a course under this section, the department of children, 
 33.25  families, and learning shall make payments according to this 
 33.26  subdivision for courses that were taken for secondary credit.  
 33.27     The department shall not make payments to a school district 
 33.28  or post-secondary institution for a course taken for 
 33.29  post-secondary credit only.  The department shall not make 
 33.30  payments to a post-secondary institution for a course from which 
 33.31  a student officially withdraws during the first 14 days of the 
 33.32  quarter or semester or who has been absent from the 
 33.33  post-secondary institution for the first 15 consecutive school 
 33.34  days of the quarter or semester and is not receiving instruction 
 33.35  in the home or hospital. 
 33.36     A post-secondary institution shall receive the following: 
 34.1      (1) for an institution granting quarter credit, the 
 34.2   reimbursement per credit hour shall be an amount equal to 88 
 34.3   percent of the product of the formula allowance, multiplied by 
 34.4   1.3, and divided by 45; or 
 34.5      (2) for an institution granting semester credit, the 
 34.6   reimbursement per credit hour shall be an amount equal to 88 
 34.7   percent of the product of the general revenue formula allowance, 
 34.8   multiplied by 1.3, and divided by 30. 
 34.9      The department of children, families, and learning shall 
 34.10  pay to each post-secondary institution 100 percent of the amount 
 34.11  in clause (1) or (2) within 30 days of receiving initial 
 34.12  enrollment information each quarter or semester.  If changes in 
 34.13  enrollment occur during a quarter or semester, the change shall 
 34.14  be reported by the post-secondary institution at the time the 
 34.15  enrollment information for the succeeding quarter or semester is 
 34.16  submitted.  At any time the department of children, families, 
 34.17  and learning notifies a post-secondary institution that an 
 34.18  overpayment has been made, the institution shall promptly remit 
 34.19  the amount due. 
 34.20     Sec. 5.  Minnesota Statutes 1995 Supplement, section 
 34.21  123.3514, subdivision 6b, is amended to read: 
 34.22     Subd. 6b.  [FINANCIAL ARRANGEMENTS, PUPILS AGE 21 OR OVER.] 
 34.23  For a pupil enrolled in a course according to this section, the 
 34.24  department of children, families, and learning shall make 
 34.25  payments according to this subdivision for courses taken to 
 34.26  fulfill high school graduation requirements by pupils eligible 
 34.27  for adult high school graduation aid.  
 34.28     The department must not make payments to a school district 
 34.29  or post-secondary institution for a course taken for 
 34.30  post-secondary credit only.  The department shall not make 
 34.31  payments to a post-secondary institution for a course from which 
 34.32  a student officially withdraws during the first 14 days of the 
 34.33  quarter or semester or who has been absent from the 
 34.34  post-secondary institution for the first 15 consecutive school 
 34.35  days of the quarter or semester and is not receiving instruction 
 34.36  in the home or hospital. 
 35.1      A post-secondary institution shall receive the following: 
 35.2      (1) for an institution granting quarter credit, the 
 35.3   reimbursement per credit hour shall be an amount equal to 88 
 35.4   percent of the product of the formula allowance, multiplied by 
 35.5   1.3, and divided by 45; or 
 35.6      (2) for an institution granting semester credit, the 
 35.7   reimbursement per credit hour shall be an amount equal to 88 
 35.8   percent of the product of the general revenue formula allowance 
 35.9   multiplied by 1.3, and divided by 30. 
 35.10     The department of children, families, and learning shall 
 35.11  pay to each post-secondary institution 100 percent of the amount 
 35.12  in clause (1) or (2) within 30 days of receiving initial 
 35.13  enrollment information each quarter or semester.  If changes in 
 35.14  enrollment occur during a quarter or semester, the change shall 
 35.15  be reported by the post-secondary institution at the time the 
 35.16  enrollment information for the succeeding quarter or semester is 
 35.17  submitted.  At any time the department of children, families, 
 35.18  and learning notifies a post-secondary institution that an 
 35.19  overpayment has been made, the institution shall promptly remit 
 35.20  the amount due. 
 35.21     A school district shall receive: 
 35.22     (1) for a pupil who is not enrolled in classes at a 
 35.23  secondary program, 12 percent of the general education formula 
 35.24  allowance times .65, times 1.3; or 
 35.25     (2) for a pupil who attends classes at a secondary program 
 35.26  part time, the general education formula allowance times .65, 
 35.27  times 1.3, times the ratio of the total number of hours the 
 35.28  pupil is in membership for courses taken by the pupil for credit 
 35.29  to 1020 hours. 
 35.30     Sec. 6.  Minnesota Statutes 1995 Supplement, section 
 35.31  123.39, subdivision 6, is amended to read: 
 35.32     Subd. 6.  For the purposes of this subdivision, a 
 35.33  "nonresident pupil" is a pupil who resides in one district, 
 35.34  defined as the "resident district" and attends school in another 
 35.35  district, defined as the "nonresident district." 
 35.36     A nonresident district may shall transport a nonresident 
 36.1   pupil within its borders and may transport a nonresident pupil 
 36.2   within the pupil's resident district.  A nonresident district 
 36.3   may not transport a nonresident pupil on a school district owned 
 36.4   or contractor operated school bus within the pupil's resident 
 36.5   district without the approval of the resident district under 
 36.6   section 120.062. 
 36.7      The parent or guardian of a nonresident pupil attending a 
 36.8   nonresident district under section 120.062 may submit a written 
 36.9   request to the resident district asking that the resident 
 36.10  district allow the nonresident district to provide 
 36.11  transportation for the pupil within the pupil's resident 
 36.12  district.  The resident district must approve or disapprove the 
 36.13  request, in writing, within 30 days.  The parent or guardian may 
 36.14  appeal the refusal of the resident district to the commissioner 
 36.15  of children, families, and learning.  The commissioner must act 
 36.16  on the appeal within 30 days.  If a nonresident district decides 
 36.17  to transport a nonresident pupil within the pupil's resident 
 36.18  district, the nonresident district must notify the pupil's 
 36.19  resident district of its decision in writing prior to providing 
 36.20  transportation. 
 36.21     Sec. 7.  Laws 1995, First Special Session chapter 3, 
 36.22  article 7, section 5, subdivision 4, is amended to read: 
 36.23     Subd. 4.  [YEAR-ROUND SCHOOL/EXTENDED WEEK OR DAY PILOT 
 36.24  PROGRAM GRANTS.] For year-round school/extended week or day 
 36.25  pilot program grants: 
 36.26        $1,800,000       .....      1996 
 36.27     $500,000 is for a grant to independent school district No. 
 36.28  624, White Bear Lake. 
 36.29     $500,000 is for a grant to independent school district No. 
 36.30  833, South Washington county. 
 36.31     $100,000 is for a grant to independent school district No. 
 36.32  911, Cambridge. 
 36.33     $300,000 is for a grant to independent school district No. 
 36.34  625, St. Paul. 
 36.35     $400,000 is for grants to two or more rural school 
 36.36  districts selected by the commissioner of education. 
 37.1      This appropriation is available until June 30, 1997. 
 37.2      Sec. 8.  [REPEALER.] 
 37.3      Minnesota Statutes 1994, section 123.3514, subdivision 9; 
 37.4   and Laws 1991, chapter 265, article 4, section 27, are repealed. 
 37.5                              ARTICLE 6
 37.6                       OTHER EDUCATION PROGRAMS 
 37.7      Section 1.  Minnesota Statutes 1995 Supplement, section 
 37.8   124.248, subdivision 1a, is amended to read: 
 37.9      Subd. 1a.  [TRANSPORTATION REVENUE.] Transportation revenue 
 37.10  shall be paid to a charter school that provides transportation 
 37.11  services according to section 120.064, subdivision 15, as though 
 37.12  it were a school district according to this subdivision.  
 37.13  Transportation aid shall equal transportation revenue.  
 37.14     (a) For the first two years that In addition to the revenue 
 37.15  under subdivision 1, a charter school is providing 
 37.16  transportation services, the regular transportation allowance 
 37.17  for the charter school shall be equal to the regular 
 37.18  transportation allowance for the school district in which the 
 37.19  charter school is located.  For the third year of transportation 
 37.20  services and later fiscal years, the predicted base cost for the 
 37.21  charter school shall be equal to the predicted base cost for the 
 37.22  school district in which the charter school is located shall 
 37.23  receive general education aid for each pupil unit equal to the 
 37.24  sum of $170, plus the transportation sparsity allowance for the 
 37.25  school district in which the charter school is located, plus the 
 37.26  transportation transition allowance for the school district in 
 37.27  which the charter school is located.  
 37.28     (b) For the first two years that a charter school is 
 37.29  providing transportation services, the nonregular special 
 37.30  programs transportation revenue equals the charter school's 
 37.31  actual cost in the current school year for nonregular 
 37.32  transportation services, minus the amount of regular 
 37.33  transportation revenue attributable to FTE's in the handicapped 
 37.34  category in the current school year for children with 
 37.35  disabilities under section 124.223, subdivisions 4, 5, 7, and 8. 
 37.36  For the third year of transportation services and later fiscal 
 38.1   years, the nonregular special programs transportation revenue 
 38.2   shall be computed according to section 124.225, subdivision 7d, 
 38.3   paragraph (b) 14.  
 38.4      Sec. 2.  Minnesota Statutes 1995 Supplement, section 
 38.5   124.248, subdivision 2, is amended to read: 
 38.6      Subd. 2.  [CAPITAL EXPENDITURE EQUIPMENT USE OF TOTAL 
 38.7   OPERATING CAPITAL REVENUE.] Capital expenditure equipment aid 
 38.8   shall be paid to a charter school according to section 124.245, 
 38.9   subdivision 6, as though it were a school district. 
 38.10     Capital expenditure equipment aid shall equal capital 
 38.11  expenditure equipment revenue.  Notwithstanding section 124.244 
 38.12  124A.22, subdivision 4 11, a charter school may use the total 
 38.13  operating capital revenue for any purpose related to the school. 
 38.14     Sec. 3.  Minnesota Statutes 1995 Supplement, section 
 38.15  124.248, subdivision 3, is amended to read: 
 38.16     Subd. 3.  [SPECIAL EDUCATION AND LIMITED ENGLISH 
 38.17  PROFICIENCY AID.] Special education aid shall be paid to a 
 38.18  charter school according to section 124.32 sections 124.3201 and 
 38.19  124.3202 as though it were a school district.  The charter 
 38.20  school may charge tuition to the district of residence as 
 38.21  provided in section 120.17, subdivision 4.  Limited English 
 38.22  proficiency programs aid shall be paid to a charter school 
 38.23  according to section 124.273 as though it were a school 
 38.24  district.  The charter school shall allocate its special 
 38.25  education levy equalization revenue to the resident districts of 
 38.26  the pupils attending the charter school as though it were a 
 38.27  cooperative, as provided in section 124.321, subdivision 2, 
 38.28  paragraph (a), clauses (1) and (3).  The districts of residence 
 38.29  shall levy as though they were participating in a cooperative, 
 38.30  as provided in section 124.321, subdivision 3. 
 38.31     Sec. 4.  Minnesota Statutes 1995 Supplement, section 
 38.32  124C.498, subdivision 2, is amended to read: 
 38.33     Subd. 2.  [APPROVAL AUTHORITY; APPLICATION FORMS.] To the 
 38.34  extent money is available, the commissioner of children, 
 38.35  families, and learning may approve projects from applications 
 38.36  submitted under this section.  The grant money must be used only 
 39.1   to predesign, acquire, design, construct, remodel, furnish, 
 39.2   equip, or improve the building or site of a magnet school 
 39.3   facility according to contracts entered into within 15 months 
 39.4   after the date on which a grant is awarded. 
 39.5      Sec. 5.  Minnesota Statutes 1994, section 124C.498, 
 39.6   subdivision 3, is amended to read: 
 39.7      Subd. 3.  [GRANT APPLICATION PROCESS.] (a) Any group of 
 39.8   school districts that meets the criteria required under 
 39.9   paragraph (b)(i) may apply for a magnet school grant in an 
 39.10  amount not to exceed $10,000,000 for the approved construction 
 39.11  costs of a magnet school facility. 
 39.12     (b)(i) Any group of districts that submits an application 
 39.13  for a grant shall submit a proposal to the commissioner for 
 39.14  review and comment under section 121.15, and the commissioner 
 39.15  shall prepare a review and comment on the proposed magnet school 
 39.16  facility, regardless of the amount of the capital expenditure 
 39.17  required to predesign, acquire, design, construct, remodel, 
 39.18  furnish, equip, or improve the facility.  The commissioner must 
 39.19  not approve an application for a magnet school grant for any 
 39.20  facility unless the facility receives a favorable review and 
 39.21  comment under section 121.15 and the participating districts: 
 39.22     (1) establish a joint powers board under section 471.59 to 
 39.23  represent all participating districts and govern the magnet 
 39.24  school facility; 
 39.25     (2) design the planned magnet school facility to meet the 
 39.26  applicable requirements contained in Minnesota Rules, chapter 
 39.27  3535; 
 39.28     (3) submit a statement of need, including reasons why the 
 39.29  magnet school will facilitate integration and improve learning; 
 39.30     (4) prepare an educational plan that includes input from 
 39.31  both community and professional staff; and 
 39.32     (5) develop an education program that will improve learning 
 39.33  opportunities for students attending the magnet school. 
 39.34     (ii) The districts may develop a plan that permits social 
 39.35  service, health, and other programs serving students and 
 39.36  community residents to be located within the magnet school 
 40.1   facility.  The commissioner shall consider this plan when 
 40.2   preparing a review and comment on the proposed facility.  
 40.3      (c) When two or more districts enter into an agreement 
 40.4   establishing a joint powers board to govern the magnet school 
 40.5   facility, all member districts shall have the same powers.  
 40.6      (d) A joint powers board of participating school districts 
 40.7   established under paragraphs (b) and (c) that intends to apply 
 40.8   for a grant shall adopt a resolution stating the costs of the 
 40.9   proposed project, the purpose for which the debt is to be 
 40.10  incurred, and an estimate of the dates when the contracts for 
 40.11  the proposed project will be completed.  A copy of the 
 40.12  resolution must accompany any application for a state grant 
 40.13  under this section. 
 40.14     (e)(i) The commissioner shall examine and consider all 
 40.15  grant applications.  If the commissioner finds that any joint 
 40.16  powers district is not a qualified grant applicant, the 
 40.17  commissioner shall promptly notify that joint powers board.  The 
 40.18  commissioner shall make awards to no more than two qualified 
 40.19  applicants whose applications have been on file with the 
 40.20  commissioner more than 30 days.  
 40.21     (ii) A grant award is subject to verification by the joint 
 40.22  powers board under paragraph (f).  A grant award must not be 
 40.23  made until the participating districts determine the site of the 
 40.24  magnet school facility.  If the total amount of the approved 
 40.25  applications exceeds the amount of grant funding that is or can 
 40.26  be made available, the commissioner shall allot the available 
 40.27  amount equally between the approved applicant districts.  The 
 40.28  commissioner shall promptly certify to each qualified joint 
 40.29  powers board the amount, if any, of the grant awarded to it. 
 40.30     (f) Each grant must be evidenced by a contract between the 
 40.31  joint powers board and the state acting through the 
 40.32  commissioner.  The contract obligates the state to pay to the 
 40.33  joint powers board an amount computed according to paragraph 
 40.34  (e)(ii) and a schedule, and terms and conditions acceptable to 
 40.35  the commissioner of finance. 
 40.36     Sec. 6.  Minnesota Statutes 1995 Supplement, section 
 41.1   126.70, subdivision 1, is amended to read: 
 41.2      Subdivision 1.  [STAFF DEVELOPMENT COMMITTEE.] A school 
 41.3   board shall use the revenue authorized in section 124A.29 for 
 41.4   in-service education for programs under section 126.77, 
 41.5   subdivision 2, or for staff development plans under this 
 41.6   section.  The board must establish a staff development committee 
 41.7   to develop the plan, assist site decision-making teams in 
 41.8   developing a site plan consistent with the goals of the plan, 
 41.9   and evaluate staff development efforts at the site level.  A 
 41.10  majority of the advisory committee must be teachers representing 
 41.11  various grade levels, subject areas, and special education.  The 
 41.12  advisory committee must also include nonteaching staff, parents, 
 41.13  and administrators.  Districts shall report staff development 
 41.14  results and expenditures to the commissioner in the form and 
 41.15  manner determined by the commissioner.  The expenditure report 
 41.16  shall include expenditures by the school board for district 
 41.17  level activities and expenditures made by the staff.  The report 
 41.18  shall provide a breakdown of expenditures for curriculum 
 41.19  development and programs, other in-service education, teacher's 
 41.20  workshops, teacher conferences, the cost of substitute teachers 
 41.21  for staff development purposes, and other related costs for 
 41.22  staff development efforts.  The commissioner shall report the 
 41.23  staff development expenditure data to the education committees 
 41.24  of the legislature by February 15 each year. 
 41.25                             ARTICLE 7
 41.26                           MISCELLANEOUS
 41.27     Section 1.  Minnesota Statutes 1995 Supplement, section 
 41.28  13.46, subdivision 2, is amended to read: 
 41.29     Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
 41.30  a statute specifically provides a different classification, data 
 41.31  on individuals collected, maintained, used, or disseminated by 
 41.32  the welfare system is private data on individuals, and shall not 
 41.33  be disclosed except:  
 41.34     (1) pursuant to section 13.05; 
 41.35     (2) pursuant to court order; 
 41.36     (3) pursuant to a statute specifically authorizing access 
 42.1   to the private data; 
 42.2      (4) to an agent of the welfare system, including a law 
 42.3   enforcement person, attorney, or investigator acting for it in 
 42.4   the investigation or prosecution of a criminal or civil 
 42.5   proceeding relating to the administration of a program; 
 42.6      (5) to personnel of the welfare system who require the data 
 42.7   to determine eligibility, amount of assistance, and the need to 
 42.8   provide services of additional programs to the individual; 
 42.9      (6) to administer federal funds or programs; 
 42.10     (7) between personnel of the welfare system working in the 
 42.11  same program; 
 42.12     (8) the amounts of cash public assistance and relief paid 
 42.13  to welfare recipients in this state, including their names, 
 42.14  social security numbers, income, addresses, and other data as 
 42.15  required, upon request by the department of revenue to 
 42.16  administer the property tax refund law, supplemental housing 
 42.17  allowance, early refund of refundable tax credits, and the 
 42.18  income tax.  "Refundable tax credits" means the dependent care 
 42.19  credit under section 290.067, the Minnesota working family 
 42.20  credit under section 290.0671, the property tax refund under 
 42.21  section 290A.04, and, if the required federal waiver or waivers 
 42.22  are granted, the federal earned income tax credit under section 
 42.23  32 of the Internal Revenue Code; 
 42.24     (9) to the Minnesota department of economic security for 
 42.25  the purpose of monitoring the eligibility of the data subject 
 42.26  for reemployment insurance, for any employment or training 
 42.27  program administered, supervised, or certified by that agency, 
 42.28  or for the purpose of administering any rehabilitation program, 
 42.29  whether alone or in conjunction with the welfare system, and to 
 42.30  verify receipt of energy assistance for the telephone assistance 
 42.31  plan; 
 42.32     (10) to appropriate parties in connection with an emergency 
 42.33  if knowledge of the information is necessary to protect the 
 42.34  health or safety of the individual or other individuals or 
 42.35  persons; 
 42.36     (11) data maintained by residential programs as defined in 
 43.1   section 245A.02 may be disclosed to the protection and advocacy 
 43.2   system established in this state pursuant to Part C of Public 
 43.3   Law Number 98-527 to protect the legal and human rights of 
 43.4   persons with mental retardation or other related conditions who 
 43.5   live in residential facilities for these persons if the 
 43.6   protection and advocacy system receives a complaint by or on 
 43.7   behalf of that person and the person does not have a legal 
 43.8   guardian or the state or a designee of the state is the legal 
 43.9   guardian of the person; 
 43.10     (12) to the county medical examiner or the county coroner 
 43.11  for identifying or locating relatives or friends of a deceased 
 43.12  person; 
 43.13     (13) data on a child support obligor who makes payments to 
 43.14  the public agency may be disclosed to the higher education 
 43.15  services office to the extent necessary to determine eligibility 
 43.16  under section 136A.121, subdivision 2, clause (5); 
 43.17     (14) participant social security numbers and names 
 43.18  collected by the telephone assistance program may be disclosed 
 43.19  to the department of revenue to conduct an electronic data match 
 43.20  with the property tax refund database to determine eligibility 
 43.21  under section 237.70, subdivision 4a; 
 43.22     (15) the current address of a recipient of aid to families 
 43.23  with dependent children may be disclosed to law enforcement 
 43.24  officers who provide the name and social security number of the 
 43.25  recipient and satisfactorily demonstrate that:  (i) the 
 43.26  recipient is a fugitive felon, including the grounds for this 
 43.27  determination; (ii) the location or apprehension of the felon is 
 43.28  within the law enforcement officer's official duties; and (iii) 
 43.29  the request is made in writing and in the proper exercise of 
 43.30  those duties; 
 43.31     (16) the current address of a recipient of general 
 43.32  assistance, work readiness, or general assistance medical care 
 43.33  may be disclosed to probation officers and corrections agents 
 43.34  who are supervising the recipient, and to law enforcement 
 43.35  officers who are investigating the recipient in connection with 
 43.36  a felony level offense; 
 44.1      (17) information obtained from food stamp applicant or 
 44.2   recipient households may be disclosed to local, state, or 
 44.3   federal law enforcement officials, upon their written request, 
 44.4   for the purpose of investigating an alleged violation of the 
 44.5   food stamp act, in accordance with Code of Federal Regulations, 
 44.6   title 7, section 272.1(c); 
 44.7      (18) data on a child support obligor who is in arrears may 
 44.8   be disclosed for purposes of publishing the data pursuant to 
 44.9   section 518.575; 
 44.10     (19) data on child support payments made by a child support 
 44.11  obligor may be disclosed to the obligee; or 
 44.12     (20) data in the work reporting system may be disclosed 
 44.13  under section 256.998, subdivision 7; or 
 44.14     (21) to the Minnesota department of children, families, and 
 44.15  learning for the purpose of matching department of children, 
 44.16  families, and learning student records to public assistance 
 44.17  records to determine students eligible for free and reduced 
 44.18  price meals, meal supplements, and free milk pursuant to United 
 44.19  States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 
 44.20  and 1773; to produce accurate numbers of students receiving aid 
 44.21  to families with dependent children as required by section 
 44.22  124.175; and to allocate federal and state resources that are 
 44.23  distributed based on income of the student's family. 
 44.24     (b) Information on persons who have been treated for drug 
 44.25  or alcohol abuse may only be disclosed in accordance with the 
 44.26  requirements of Code of Federal Regulations, title 42, sections 
 44.27  2.1 to 2.67. 
 44.28     (c) Data provided to law enforcement agencies under 
 44.29  paragraph (a), clause (15), (16), or (17), or paragraph (b), are 
 44.30  investigative data and are confidential or protected nonpublic 
 44.31  while the investigation is active.  The data are private after 
 44.32  the investigation becomes inactive under section 13.82, 
 44.33  subdivision 5, paragraph (a) or (b). 
 44.34     (d) Mental health data shall be treated as provided in 
 44.35  subdivisions 7, 8, and 9, but is not subject to the access 
 44.36  provisions of subdivision 10, paragraph (b). 
 45.1      Sec. 2.  Minnesota Statutes 1994, section 120.101, 
 45.2   subdivision 5b, is amended to read: 
 45.3      Subd. 5b.  [INSTRUCTIONAL DAYS.] Every child required to 
 45.4   receive instruction according to subdivision 5 shall receive 
 45.5   instruction for at least 170 days through the 1995-1996 each 
 45.6   school year, and for later years, at least the number of days 
 45.7   per school year in the following schedule: 
 45.8      (1) 1996-1997, 174; 
 45.9      (2) 1997-1998, 176; 
 45.10     (3) 1998-1999, 178; 
 45.11     (4) 1999-2000, 180; 
 45.12     (5) 2000-2001, 182; 
 45.13     (6) 2001-2002, 184; 
 45.14     (7) 2002-2003, 186; 
 45.15     (8) 2003-2004, 188; and 
 45.16     (9) 2004-2005, and later school years, 190. 
 45.17     Sec. 3.  Minnesota Statutes 1995 Supplement, section 
 45.18  121.917, subdivision 4, is amended to read: 
 45.19     Subd. 4.  (1) If the net negative undesignated 
 45.20  unappropriated operating fund balance in all the funds of a 
 45.21  school district, other than statutory operating debt pursuant to 
 45.22  section 121.914, capital expenditure, building construction, 
 45.23  debt service, trust and agency, and post-secondary vocational 
 45.24  technical education funds as defined in section 124A.02, 
 45.25  subdivision 25, calculated in accordance with the uniform 
 45.26  financial accounting and reporting standards for Minnesota 
 45.27  school districts, as of June 30 each year, is more than 2-1/2 
 45.28  percent of the year's expenditure amount, the district shall, 
 45.29  prior to September 15 January 31 of the next fiscal year, submit 
 45.30  a special operating plan to reduce the district's deficit 
 45.31  expenditures to the commissioner of children, families, and 
 45.32  learning for approval.  The commissioner may also require the 
 45.33  district to provide evidence that the district meets and will 
 45.34  continue to meet all of the curriculum requirements of the state 
 45.35  board. 
 45.36     Notwithstanding any other law to the contrary, a district 
 46.1   submitting a special operating plan to the commissioner under 
 46.2   this clause which is disapproved by the commissioner shall not 
 46.3   receive any aid pursuant to chapters 124 and 124A until a 
 46.4   special operating plan of the district is so approved. 
 46.5      (2) A district shall receive aids pending the approval of 
 46.6   its special operating plan under clause (1).  A district which 
 46.7   complies with its approved operating plan shall receive aids as 
 46.8   long as the district continues to comply with the approved 
 46.9   operating plan. 
 46.10     Sec. 4.  Minnesota Statutes 1994, section 124.19, 
 46.11  subdivision 1, is amended to read: 
 46.12     Subdivision 1.  [INSTRUCTIONAL TIME.] Every district shall 
 46.13  maintain school in session or provide instruction in other 
 46.14  districts for at least 175 days through the 1995-1996 each 
 46.15  school year and the number of days required in subdivision 1b 
 46.16  thereafter, not including summer school, or the equivalent in a 
 46.17  district operating a flexible school year program.  A district 
 46.18  that holds school for the required minimum number of days and is 
 46.19  otherwise qualified is entitled to state aid as provided by 
 46.20  law.  If school is not held for the required minimum number of 
 46.21  days, state aid shall be reduced by the ratio that the 
 46.22  difference between the required number of days and the number of 
 46.23  days school is held bears to the required number of days, 
 46.24  multiplied by 60 percent of the basic revenue, as defined in 
 46.25  section 124A.22, subdivision 2, of the district for that year. 
 46.26  However, districts maintaining school for fewer than the 
 46.27  required minimum number of days do not lose state aid (1) if the 
 46.28  circumstances causing loss of school days below the required 
 46.29  minimum number of days are beyond the control of the board, (2) 
 46.30  if proper evidence is submitted, and (3) if a good faith attempt 
 46.31  is made to make up time lost due to these circumstances.  The 
 46.32  loss of school days resulting from a lawful employee strike 
 46.33  shall not be considered a circumstance beyond the control of the 
 46.34  board.  Days devoted to meetings authorized or called by the 
 46.35  commissioner may not be included as part of the required minimum 
 46.36  number of days of school.  For grades 1 to 12, days devoted to 
 47.1   parent-teacher conferences, teachers' workshops, or other staff 
 47.2   development opportunities as part of the required minimum number 
 47.3   of days must not exceed five days through the 1995-1996 each 
 47.4   school year and for subsequent school years the difference 
 47.5   between the number of days required in subdivision 1b and the 
 47.6   number of instructional days required in subdivision 5b.  For 
 47.7   kindergarten, days devoted to parent-teacher conferences, 
 47.8   teachers' workshops, or other staff development opportunities as 
 47.9   part of the required minimum number of days must not exceed 
 47.10  twice the number of days for grades 1 to 12. 
 47.11     Sec. 5.  Minnesota Statutes 1994, section 124A.02, 
 47.12  subdivision 25, is amended to read: 
 47.13     Subd. 25.  [NET UNAPPROPRIATED OPERATING FUND BALANCE.] 
 47.14  "Net unappropriated operating fund balance" means the sum of the 
 47.15  fund balances in the general, transportation, food service, and 
 47.16  community service funds minus the balances reserved for 
 47.17  statutory operating debt reduction, bus purchase, severance pay, 
 47.18  taconite, reemployment insurance, maintenance levy reduction, 
 47.19  operating capital, and encumbrances, computed as of June 30 each 
 47.20  year. 
 47.21                             ARTICLE 8
 47.22                             LIBRARIES
 47.23     Section 1.  Minnesota Statutes 1995 Supplement, section 
 47.24  134.45, subdivision 2, is amended to read: 
 47.25     Subd. 2.  [APPROVAL BY COMMISSIONER.] The commissioner of 
 47.26  children, families, and learning, in consultation with the state 
 47.27  council on disability, may approve or disapprove applications 
 47.28  under this section.  The grant money must be used only to remove 
 47.29  architectural barriers from a building or site or for one-third 
 47.30  the cost, not to exceed $500,000, of a new building when removal 
 47.31  of architectural barriers from an existing building is not 
 47.32  economically feasible. 
 47.33     Sec. 2.  Minnesota Statutes 1994, section 134.45, 
 47.34  subdivision 5, is amended to read: 
 47.35     Subd. 5.  [QUALIFICATION.] A public library jurisdiction 
 47.36  may apply for a grant in an amount up to 50 percent of the 
 48.1   approved costs of removing architectural barriers from a 
 48.2   building or site or for one-third the cost, not to exceed 
 48.3   $500,000, of a new building when removal of architectural 
 48.4   barriers from an existing building is not economically feasible.