1st Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 04/25/1997 | |
1st Engrossment | Posted on 02/16/1998 |
1.1 A bill for an act 1.2 relating to education; recodifying and making 1.3 technical amendments to kindergarten through grade 12 1.4 education statutes; amending Minnesota Statutes 1996, 1.5 sections 120.02, subdivisions 1, 13, 14, 15, and 18; 1.6 120.06, subdivisions 1 and 2a; 120.062, subdivisions 1.7 4, 5, and 8a; 120.0621, as amended; 120.064, 1.8 subdivisions 4, 4a, 5, 7, 9, 11, 12, 13, 14, 15, 17, 1.9 19, 20, 21, 22, and 24; 120.075, subdivisions 1, 2, 1.10 3a, and 4; 120.0751, subdivisions 1, 2, 3, 4, and 5; 1.11 120.0752, subdivisions 1, 2, and 3; 120.08; 120.101, 1.12 subdivisions 5a, 7, 8, 9, and 10; 120.102, 1.13 subdivisions 1, 3, and 4; 120.103, subdivisions 3, 4, 1.14 5, and 6; 120.11; 120.14; 120.17, subdivisions 1, 1b, 1.15 2, 3, 3a, 3b, 3d, 4, 4a, 5, 5a, 6, 7, 7a, 8a, 9, 10, 1.16 16, 18, and 19; 120.1701, subdivisions 2, 4, 5, 6, 7, 1.17 8, 8a, 9, 10, 11, 12, 15, 17, 19, 20, 21, and 22; 1.18 120.172, subdivision 2; 120.173, subdivisions 1, 3, 4, 1.19 and 6; 120.1811; 120.182; 120.183; 120.185; 120.188; 1.20 120.189; 120.190; 120.59; 120.60; 120.61; 120.62; 1.21 120.63; 120.64; 120.66; 120.73, subdivisions 1, 2a, 1.22 2b, 3, and 4; 120.74; 120.75; 120.76; 120.80; 1.23 121.1115, subdivisions 1 and 2; 121.155; 121.201; 1.24 121.203, subdivision 1; 121.207, subdivisions 2 and 3; 1.25 121.585, subdivisions 2, 6, and 7; 121.615, 1.26 subdivision 11; 121.704; 121.705, subdivision 2; 1.27 121.706; 121.707, subdivisions 3, 4, 5, 6, and 7; 1.28 121.708; 121.710, subdivisions 2 and 3; 121.831, 1.29 subdivisions 6, 7, 8, 9, 10, 11, and 12; 121.835, 1.30 subdivisions 4, 5, 7, and 8; 121.8355, subdivisions 2, 1.31 3, 5, and 6; 121.88, subdivisions 2, 3, 4, 6, 7, and 1.32 9; 121.882, subdivisions 1, 2b, 3, 7, 7a, 8, and 9; 1.33 121.885, subdivisions 1 and 4; 121.904, subdivisions 1.34 1, 2, 3, 4c, and 13; 121.906; 121.908; 121.911; 1.35 121.912, subdivisions 1a, 1b, 2, 3, 5, and 6; 1.36 121.9121, subdivisions 2 and 4; 121.914, subdivisions 1.37 2, 3, 4, 5, 6, 7, and 8; 121.917; 122.01; 122.02; 1.38 122.03; 122.21; 122.22, subdivisions 1, 4, 5, 6, 7a, 1.39 9, 13, 14, 18, 20, and 21; 122.23, subdivisions 2, 2b, 1.40 3, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 16c, 18, 18a, 1.41 and 20; 122.241; 122.242, subdivisions 1, 3, 8, and 9; 1.42 122.243; 122.245, subdivision 2; 122.246; 122.247, 1.43 subdivisions 2 and 2a; 122.248; 122.25, subdivisions 2 1.44 and 3; 122.32; 122.34; 122.355; 122.41; 122.43; 1.45 122.44; 122.45, subdivisions 2 and 3a; 122.46; 122.47; 1.46 122.48; 122.531, subdivisions 2c, 5a, and 9; 122.5311, 2.1 subdivision 1; 122.532, subdivisions 2, 3a, and 4; 2.2 122.535, subdivisions 2, 3, 4, 5, and 6; 122.541, 2.3 subdivisions 1, 2, 4, 5, 6, and 7; 122.895; 122.91, 2.4 subdivisions 2, 2a, 3a, 4, and 6; 122.93, subdivisions 2.5 3 and 8; 122.95, subdivisions 1, 1a, 2, and 4; 123.11, 2.6 subdivisions 1, 2, 3, 4, and 7; 123.12; 123.13; 2.7 123.15; 123.33, subdivisions 1, 2, 2a, 3, 4, 6, 7, 11, 2.8 and 11a; 123.335; 123.34, subdivisions 1, 2, 7, 8, 9, 2.9 9a, and 10; 123.35, subdivisions 1, 2, 4, 5, 8a, 9b, 2.10 12, 13, 15, 19a, 19b, 20, and 21; 123.351, 2.11 subdivisions 1, 3, 4, 5, 8, and 8a; 123.3513; 2.12 123.3514, subdivisions 3, 4b, 4d, 5, 6, 6b, 7a, and 2.13 7b; 123.36, subdivisions 1, 5, 10, 11, 13, and 14; 2.14 123.37, subdivisions 1, 1a, and 1b; 123.38, 2.15 subdivisions 1, 2, 2a, 2b, and 3; 123.39, subdivisions 2.16 1, 2, 8, 8a, 8b, 8c, 8d, 8e, 9a, 11, 12, 13, 14, 15, 2.17 and 16; 123.40, subdivisions 1, 2, and 8; 123.41; 2.18 123.582, subdivision 2; 123.63; 123.64; 123.66; 2.19 123.681; 123.70, subdivisions 2, 4, and 8; 123.702, 2.20 subdivisions 1, 1b, 2, 3, 4, 4a, 5, 6, and 7; 123.704; 2.21 123.7045; 123.71; 123.72; 123.75, subdivisions 2, 3, 2.22 and 5; 123.751, subdivisions 1, 2, and 3; 123.76; 2.23 123.78, subdivisions 1a and 2; 123.79, subdivision 1; 2.24 123.799, as amended; 123.7991, subdivision 3; 123.801; 2.25 123.805; 123.932, subdivision 1b; 123.933; 123.935, 2.26 subdivisions 1, 2, 4, 5, and 6; 123.936; 123.9361; 2.27 123.9362; 123.947; 124.06; 124.07, subdivision 2; 2.28 124.078; 124.08; 124.09; 124.10, subdivisions 1 and 2; 2.29 124.12; 124.14, subdivisions 2, 3, 3a, 4, 6, 7, and 8; 2.30 124.15, subdivisions 2, 2a, 3, 4, 5, 6, and 8; 124.17, 2.31 subdivisions 2, 2a, and 2b; 124.175; 124.19, 2.32 subdivision 5; 124.195, subdivisions 1, 3, 3a, 3b, 4, 2.33 5, 6, and 14; 124.196; 124.2131, subdivisions 1, 2, 2.34 3a, 5, 6, 7, 8, 9, and 11; 124.214; 124.225, 2.35 subdivisions 7f, 8l, 8m, and 9; 124.227; 124.239, 2.36 subdivision 3; 124.242; 124.248, subdivisions 1 and 2.37 1a; 124.255; 124.26, subdivision 1c; 124.2601, 2.38 subdivision 7; 124.2605; 124.2615, subdivision 4; 2.39 124.2711, as amended; 124.2712; 124.2713, subdivision 2.40 7; 124.2715, subdivision 3; 124.2716, subdivisions 1 2.41 and 2; 124.2726, subdivisions 1, 2, and 4; 124.2727, 2.42 subdivision 9; 124.273, subdivisions 3, 4, 6, and 7; 2.43 124.276, subdivisions 1 and 3; 124.278, subdivision 3; 2.44 124.311, subdivision 1; 124.32; 124.3201, subdivisions 2.45 5, 6, and 7; 124.322, subdivision 1; 124.35; 124.37; 2.46 124.38, subdivisions 1, 4a, and 7; 124.381; 124.39; 2.47 124.40; 124.41, subdivision 3; 124.42, as amended; 2.48 124.431, subdivisions 4, 5, 6, 10, 12, 13, and 14; 2.49 124.44; 124.46, as amended; 124.48, as amended; 2.50 124.492; 124.493, subdivision 1; 124.494, subdivisions 2.51 1, 2, 2a, 3, 5, and 7; 124.4945; 124.511; 124.573, 2.52 subdivisions 2, 2b, 2e, 2f, 3, 3a, and 5a; 124.625; 2.53 124.63; 124.646; 124.6462; 124.6469, subdivision 3; 2.54 124.647; 124.6471; 124.6472; 124.648, as amended; 2.55 124.71, subdivision 1; 124.72; 124.73; 124.74; 124.75; 2.56 124.755, subdivisions 2, 3, 4, 5, 6, 7, 8, and 9; 2.57 124.82, subdivisions 1 and 3; 124.83, subdivision 8; 2.58 124.84, subdivisions 1 and 2; 124.85, subdivisions 2, 2.59 2a, 2b, 2c, 5, 6, and 7; 124.86, subdivisions 1, 3, 2.60 and 4; 124.90; 124.91, subdivisions 4 and 6; 124.912, 2.61 subdivisions 7 and 9; 124.914; 124.916, as amended; 2.62 124.918, subdivisions 2, 3, and 7; 124.95, subdivision 2.63 1; 124.97; 124A.02, subdivisions 1, 3a, 20, 21, 22, 2.64 23, and 24; 124A.029, subdivisions 1, 3, and 4; 2.65 124A.03, subdivisions 2, 2a, and 3c; 124A.0311, 2.66 subdivisions 2, 3, and 4; 124A.032; 124A.034; 2.67 124A.035; 124A.036, as amended; 124A.04, as amended; 2.68 124A.22, subdivisions 2a, 5, 8, and 12; 124A.225, 2.69 subdivisions 4 and 5; 124A.29; 124A.30; 124C.07; 2.70 124C.08, subdivisions 2 and 3; 124C.09; 124C.12, 2.71 subdivision 2; 124C.45, subdivision 1; 124C.49; 3.1 124C.498, as amended; 124C.60, subdivision 2; 124C.72, 3.2 subdivision 2; 124C.73, subdivision 3; 125.03, 3.3 subdivisions 1 and 6; 125.04; 125.05, subdivisions 1, 3.4 1a, 6, and 8; 125.06; 125.09; 125.11; 125.12, 3.5 subdivisions 1a, 2, 2a, 3, 3b, 4, 6, 6a, 6b, 7, 8, 9, 3.6 9a, 10, 11, and 13; 125.121, subdivisions 1 and 2; 3.7 125.135; 125.138, subdivisions 1, 3, 4, and 5; 125.16; 3.8 125.17, subdivisions 2, 2b, 3, 3b, 4, 5, 6, 7, 8, 9, 3.9 10, 10a, 11, and 12; 125.18; 125.181; 125.183, 3.10 subdivisions 1, 4, and 5; 125.184; 125.185, 3.11 subdivisions 1, 2, 4, 5, and 7; 125.187; 125.188, 3.12 subdivisions 1, 3, and 5; 125.1885, subdivision 5; 3.13 125.189; 125.1895, subdivision 4; 125.211, subdivision 3.14 2; 125.230, subdivisions 4, 6, and 7; 125.231, 3.15 subdivision 3; 125.53; 125.54; 125.60, subdivisions 2, 3.16 3, 4, 6a, and 8; 125.611, subdivisions 1 and 13; 3.17 125.62, subdivisions 2, 3, and 7; 125.623, subdivision 3.18 3; 125.702; 125.703; 125.704, subdivision 1; 125.705, 3.19 subdivisions 1, 3, 4, and 5; 125.80; 126.05; 126.12; 3.20 126.13; 126.14; 126.15, subdivisions 2 and 3; 3.21 126.1995; 126.21, subdivisions 3 and 5; 126.22, 3.22 subdivisions 5 and 6; 126.235; 126.239, subdivision 1; 3.23 126.262, subdivisions 3 and 6; 126.264; 126.265; 3.24 126.266, subdivision 1; 126.267; 126.36, subdivisions 3.25 1, 5, and 7; 126.43, subdivisions 1 and 2; 126.48, 3.26 subdivisions 1, 2, 3, 4, and 5; 126.49, subdivisions 3.27 1, 5, 6, and 8; 126.50; 126.501; 126.51, subdivisions 3.28 1a and 2; 126.52, subdivisions 5 and 8; 126.531, 3.29 subdivision 1; 126.54, subdivisions 1, 2, 3, 4, 5, and 3.30 6; 126.56, subdivision 6; 126.69, subdivision 1; 3.31 126.70, subdivisions 1 and 2a; 126.72, subdivisions 3 3.32 and 6; 126.78, subdivision 4; 126.84, subdivisions 1, 3.33 3, 4, and 5; 126A.01; 126B.01, subdivisions 2 and 4; 3.34 126B.10; 127.02; 127.03; 127.04; 127.17, subdivisions 3.35 1, 3, and 4; 127.19; 127.20; 127.40, subdivision 4; 3.36 127.41; 127.411; 127.412; 127.413; 127.42; 127.44; 3.37 127.45, subdivision 2; 127.455; 127.46; 127.47, 3.38 subdivision 2; 127.48; 129C.10, subdivisions 3a, 3b, 3.39 4, and 6; and 129C.15; Minnesota Statutes 1997 3.40 Supplement, sections 120.05; 120.062, subdivisions 3, 3.41 6, and 7; 120.064, subdivisions 8, 10, 14a, and 20a; 3.42 120.101, subdivisions 5 and 5c; 120.1015; 120.1701, 3.43 subdivision 3; 120.181; 121.615, subdivisions 2, 3, 9, 3.44 and 10; 121.831, subdivision 3; 121.88, subdivision 3.45 10; 121.882, subdivision 2; 121.904, subdivision 4a; 3.46 121.912, subdivision 1; 123.35, subdivision 8; 3.47 123.3514, subdivisions 4, 4a, 4e, 6c, and 8; 123.7991, 3.48 subdivision 2; 124.155, subdivisions 1 and 2; 124.17, 3.49 subdivisions 1 and 4; 124.195, subdivisions 2, 7, and 3.50 10; 124.2445; 124.2455; 124.248, subdivisions 3 and 4; 3.51 124.26, subdivision 2; 124.2601, subdivision 6; 3.52 124.2615, subdivision 2; 124.2713, subdivision 8; 3.53 124.321, subdivisions 1 and 2; 124.322, subdivision 3.54 1a; 124.323, subdivision 1; 124.41, subdivision 2; 3.55 124.431, subdivisions 2 and 11; 124.45, subdivision 2; 3.56 124.481; 124.574, subdivision 9; 124.83, subdivision 3.57 1; 124.86, subdivision 2; 124.91, subdivision 5; 3.58 124.912, subdivisions 1 and 6; 124.918, subdivisions 3.59 1, 6, and 8; 124A.22, subdivisions 6, 11, and 13; 3.60 124A.23, subdivisions 1, 2, and 3; 124A.28, 3.61 subdivision 3; 124C.45, subdivision 1a; 125.05, 3.62 subdivision 1c; 125.12, subdivision 14; 126.22, 3.63 subdivisions 2, 3a, and 8; 126.23, subdivision 1; 3.64 126.51, subdivision 1; 126.531, subdivision 3; 126.72, 3.65 subdivision 2; 126.77, subdivision 1; and 129C.10, 3.66 subdivision 3; proposing coding for new law as 3.67 Minnesota Statutes, chapters 120B; and 120C; repealing 3.68 Minnesota Statutes 1996, sections 120.90; 122.532, 3.69 subdivision 1; 122.541, subdivision 3; 123.35, 3.70 subdivision 10; 124.01; 124.19, subdivision 4; 3.71 124.2725, subdivisions 1, 2, 3, 4, 5, 6, 7, 9, 10, 12, 4.1 13, 14, and 16; 124.312, as amended; 124.38, 4.2 subdivision 9; 124.472; 124.473; 124.474; 124.476; 4.3 124.477; 124.478; 124.479; 124.71, subdivision 2; 4.4 124A.02, subdivisions 15 and 16; 124A.029, subdivision 4.5 2; 124A.03, subdivision 3b; 124A.22, subdivision 13f; 4.6 124A.225, subdivision 6; 124A.31; 124C.55; 124C.56; 4.7 124C.57; 124C.58; 125.10; 126.84, subdivision 6; 4.8 127.01; and 127.17, subdivision 2; Minnesota Statutes 4.9 1997 Supplement, sections 124.2725, subdivision 11; 4.10 124.313; 124.314; and 124A.26. 4.11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 4.12 ARTICLE 1 4.13 CHAPTER 120A 4.14 ENROLLMENT; ATTENDANCE; FEES 4.15 Section 1. Minnesota Statutes 1996, section 120.02, 4.16 subdivision 1, is amended to read: 4.17 Subdivision 1. [SCOPE.] For the purposes of this chapter 4.18 thewords, phrases andterms defined in this sectionshallhave 4.19 the meaningsrespectively ascribed togiven them. 4.20 Sec. 2. Minnesota Statutes 1996, section 120.02, 4.21 subdivision 13, is amended to read: 4.22 Subd. 13. [COMMON DISTRICT.]A"Common district"is4.23 means any school district validly created and existing as a 4.24 common school district or joint common school district as of 4.25 July 1, 1957, or pursuant to the terms of the education code. 4.26 Sec. 3. Minnesota Statutes 1996, section 120.02, 4.27 subdivision 14, is amended to read: 4.28 Subd. 14. [INDEPENDENT DISTRICT.]An"Independent district 4.29 "ismeans any school district validly created and existing as 4.30 an independent, consolidated, joint independent, county or a ten 4.31 or more township district as of July 1, 1957, or pursuant to the 4.32 education code. 4.33 Sec. 4. Minnesota Statutes 1996, section 120.02, 4.34 subdivision 15, is amended to read: 4.35 Subd. 15. [SPECIAL DISTRICT.]A"Special district"is4.36 means a district established by a charter granted by the 4.37 legislature or by a home rule charter including any 4.38 districtwhich isdesignated a special independent school 4.39 district by the legislature. 4.40 Sec. 5. Minnesota Statutes 1996, section 120.02, 5.1 subdivision 18, is amended to read: 5.2 Subd. 18. [SCHOOL DISTRICT TAX.] "School district tax"is5.3 means the tax levied and collected to provide the amount of 5.4 money voted or levied by the district or the board for school 5.5 purposes. 5.6 Sec. 6. Minnesota Statutes 1997 Supplement, section 5.7 120.05, is amended to read: 5.8 120.05 [PUBLIC SCHOOLS.] 5.9 Subd. 2. [DEFINITIONSELEMENTARY SCHOOL.](1)"Elementary 5.10 school" means any school with building, equipment, courses of 5.11 study, class schedules, enrollment of pupils ordinarily in 5.12 prekindergarten through grade 6 or any portion thereof, and 5.13 staff meeting the standards established by the state boardof5.14education. 5.15 The state board of education shall not close a school or 5.16 deny any state aids to a district for its elementary schools 5.17 because of enrollment limitations classified in accordance with 5.18 the provisions of clause (1). 5.19(2)Subd. 3. [MIDDLE SCHOOL.] "Middle school" means any 5.20 school other than a secondary school giving an approved course 5.21 of study in a minimum of three consecutive grades above 4th but 5.22 below 10th with building, equipment, courses of study, class 5.23 schedules, enrollment, and staff meeting the standards 5.24 established by the state board of education. 5.25(3)Subd. 4. [SECONDARY SCHOOL.] "Secondary school" means 5.26 any school with building, equipment, courses of study, class 5.27 schedules, enrollment of pupils ordinarily in grades 7 through 5.28 12 or any portion thereof, and staff meeting the standards 5.29 established by the state board of education. 5.30(4)Subd. 5. [VOCATIONAL CENTER SCHOOL.]A"Vocational 5.31 center school"is onemeans any school serving a group of 5.32 secondary schools with approved areas of secondary vocational 5.33 training and offering vocational secondary and adult programs 5.34 necessary to meet local needs and meeting standards established 5.35 by the state board of education. 5.36 Sec. 7. Minnesota Statutes 1996, section 120.06, 6.1 subdivision 1, is amended to read: 6.2 Subdivision 1. [AGE LIMITATIONS; PUPILS.] All schools 6.3 supported in whole or in part by state funds are public schools. 6.4 Admission to a public school is free to any person who resides 6.5 within the districtwhichthat operates the school, who is under 6.6 21 years of age, and who satisfies the minimum age requirements 6.7 imposed by this section. Notwithstanding the provisions of any 6.8 law to the contrary, the conduct of all students under 21 years 6.9 of age attending a public secondary schoolshall beis governed 6.10 by a single set of reasonable rules and regulations promulgated 6.11 by the school board. No person shall be admitted to any public 6.12 school (1) as a kindergarten pupil, unless the pupil is at least 6.13 five years of age on September 1 of the calendar year in which 6.14 the school year for which the pupil seeks admission commences; 6.15 or (2) as a 1st grade student, unless the pupil is at least six 6.16 years of age on September 1 of the calendar year in which the 6.17 school year for which the pupil seeks admission commences or has 6.18 completed kindergarten; except that any school board may 6.19 establish a policy for admission of selected pupils at an 6.20 earlier age. 6.21 Sec. 8. Minnesota Statutes 1996, section 120.06, 6.22 subdivision 2a, is amended to read: 6.23 Subd. 2a. [EDUCATION OF HOMELESS.] Notwithstanding 6.24 subdivision 1, aschooldistrict must not deny free admission to 6.25 a homeless person of school age solely because theschool6.26 district cannot determine that the person is a resident of 6.27 theschooldistrict. 6.28 Sec. 9. Minnesota Statutes 1997 Supplement, section 6.29 120.062, subdivision 3, is amended to read: 6.30 Subd. 3. [LIMITED ENROLLMENT OF NONRESIDENT PUPILS.] (a) A 6.31schoolboard may, by resolution, limit the enrollment of 6.32 nonresident pupils in its schools or programs according to this 6.33 section to a number not less than the lesser of: 6.34 (1) one percent of the total enrollment at each grade level 6.35 in the district; or 6.36 (2) the number of district residents at that grade level 7.1 enrolled in a nonresident district according to this section. 7.2 (b) A district that limits enrollment of nonresident pupils 7.3 under paragraph (a) shall report to the commissioner by July 15 7.4 on the number of nonresident pupils denied admission due to the 7.5 limitations on the enrollment of nonresident pupils. 7.6 Sec. 10. Minnesota Statutes 1996, section 120.062, 7.7 subdivision 4, is amended to read: 7.8 Subd. 4. [PUPIL APPLICATION PROCEDURES.] In order that a 7.9 pupil may attend a school or program in a nonresident district, 7.10 the pupil's parent or guardian must submit an application to the 7.11 nonresident district. Before submitting an application, the 7.12 pupil and the pupil's parent or guardian must explore with a 7.13 school guidance counselor, or other appropriate staff member 7.14 employed by the district the pupil is currently attending, the 7.15 pupil's academic or other reason for applying to enroll in a 7.16 nonresident district. The pupil's application must identify the 7.17 reason for enrolling in the nonresident district. The parent or 7.18 guardian of a pupil must submit an application by January 15 for 7.19 initial enrollment beginning the following school year. The 7.20 applicationshallmust be on a form provided by the department 7.21 of children, families, and learning. A particular school or 7.22 program may be requested by the parent. Once enrolled in a 7.23 nonresident district, the pupil may remain enrolled and is not 7.24 required to submit annual or periodic applications. To return 7.25 to the resident district or to transfer to a different 7.26 nonresident district, the parent or guardian of the pupil must 7.27 provide notice to the resident district or apply to a different 7.28 nonresident district by January 15 for enrollment beginning the 7.29 following school year. 7.30 Sec. 11. Minnesota Statutes 1996, section 120.062, 7.31 subdivision 5, is amended to read: 7.32 Subd. 5. [DESEGREGATION DISTRICT TRANSFERS.] (a) This 7.33 subdivision applies to a transfer into or out of a district that 7.34 has a desegregation plan approved by the commissioner of 7.35 children, families, and learning. 7.36 (b) An application to transfer may be submitted at any time 8.1 for enrollment beginning at any time. 8.2 (c) The parent or guardian of a pupil who is a resident of 8.3 a district that has a desegregation plan must submit an 8.4 application to the resident district. If the district accepts 8.5 the application, it must forward the application to the 8.6 nonresident district. 8.7 (d) The parent or guardian of a pupil who applies for 8.8 enrollment in a nonresident district that has a desegregation 8.9 plan must submit an application to the nonresident district. 8.10 (e) Each district must accept or reject an application it 8.11 receives and notify the parent or guardian in writing within 30 8.12 calendar days of receiving the application. A notification of 8.13 acceptance must include the date enrollment can begin. 8.14 (f) If an application is rejected, the district must state 8.15 the reason for rejection in the notification. If a district 8.16 that has a desegregation plan rejects an application for a 8.17 reason related to the desegregation plan, the district must 8.18 state with specificity how acceptance of the application would 8.19 result in noncompliance with state board rules with respect to 8.20 the school or program for which application was made. 8.21 (g) If an application is accepted, the parent or guardian 8.22 must notify the nonresident district in writing within 15 8.23 calendar days of receiving the acceptance whether the pupil 8.24 intends to enroll in the nonresident district. Notice of 8.25 intention to enroll obligates the pupil to enroll in the 8.26 nonresident district, unless theschoolboards of the resident 8.27 and nonresident districts agree otherwise. If a parent or 8.28 guardian does not notify the nonresident district, the pupil may 8.29 not enroll in that nonresident district at that time, unless the 8.30schoolboards of the resident and nonresident district agree 8.31 otherwise. 8.32 (h) Within 15 calendar days of receiving the notice from 8.33 the parent or guardian, the nonresident district shall notify 8.34 the resident district in writing of the pupil's intention to 8.35 enroll in the nonresident district. 8.36 (i) A pupil enrolled in a nonresident district under this 9.1 subdivision is not required to make annual or periodic 9.2 application for enrollment but may remain enrolled in the same 9.3 district. A pupil may transfer to the resident district at any 9.4 time. 9.5 (j) A pupil enrolled in a nonresident district and applying 9.6 to transfer into or out of a district that has a desegregation 9.7 plan must follow the procedures of this subdivision. For the 9.8 purposes of this type of transfer, "resident district" means the 9.9 nonresident district in which the pupil is enrolled at the time 9.10 of application. 9.11 (k) A district that has a desegregation plan approved by 9.12 the state boardof educationmust accept or reject each 9.13 individual application in a manner that will enable compliance 9.14 with its desegregation plan. 9.15 Sec. 12. Minnesota Statutes 1997 Supplement, section 9.16 120.062, subdivision 6, is amended to read: 9.17 Subd. 6. [NONRESIDENT DISTRICT PROCEDURES.] A district 9.18 shall notify the parent or guardian in writing by February 15 9.19 whether the application has been accepted or rejected. If an 9.20 application is rejected, the district must state in the 9.21 notification the reason for rejection. The parent or guardian 9.22shallmust notify the nonresident district by March 1 whether 9.23 the pupil intends to enroll in the nonresident district. Notice 9.24 of intent to enroll in the nonresident district obligates the 9.25 pupil to attend the nonresident district during the following 9.26 school year, unless theschoolboards of the resident and the 9.27 nonresident districts agree in writing to allow the pupil to 9.28 transfer back to the resident district, or the pupil's parents 9.29 or guardians change residence to another district. If a parent 9.30 or guardian does not notify the nonresident district, the pupil 9.31 may not enroll in that nonresident district during the following 9.32 school year, unless theschoolboards of the resident and 9.33 nonresident district agree otherwise. The nonresident district 9.34shallmust notify the resident district by March 15 of the 9.35 pupil's intent to enroll in the nonresident district. The same 9.36 procedures apply to a pupil who applies to transfer from one 10.1 participating nonresident district to another participating 10.2 nonresident district. 10.3 Sec. 13. Minnesota Statutes 1997 Supplement, section 10.4 120.062, subdivision 7, is amended to read: 10.5 Subd. 7. [BASIS FOR DECISIONS.] Theschoolboard must 10.6 adopt, by resolution, specific standards for acceptance and 10.7 rejection of applications. Standards may include the capacity 10.8 of a program, class, or school building. The school board may 10.9 not reject applications for enrollment in a particular grade 10.10 level if the nonresident enrollment at that grade level does not 10.11 exceed the limit set by the board under subdivision 3. 10.12 Standards may not include previous academic achievement, 10.13 athletic or other extracurricular ability, disabling conditions, 10.14 proficiency in the English language, previous disciplinary 10.15 proceedings, or the student's district of residence. 10.16 Sec. 14. Minnesota Statutes 1996, section 120.062, 10.17 subdivision 8a, is amended to read: 10.18 Subd. 8a. [EXCEPTIONS TO DEADLINES.] Notwithstanding 10.19 subdivision 4, the following pupil application procedures apply: 10.20 (a) Upon agreement of the resident and nonresidentschool10.21 districts, a pupil may submit an application to a nonresident 10.22 district after January 15 for enrollment beginning the following 10.23 school year. 10.24 (b) If, as a result of entering into, modifying, or 10.25 terminating an agreement betweenschoolboards, a pupil is 10.26 assigned after December 1 to a different school for enrollment 10.27 beginning at any time, the pupil, the pupil's siblings, or any 10.28 other pupil residing in the pupil's residence may submit an 10.29 application to a nonresident district at any time before July 1 10.30 for enrollment beginning the following school year. 10.31 (c) A pupil who becomes a resident of aschooldistrict 10.32 after December 1 may submit an application to a nonresident 10.33 district on January 15 or any time after that date for 10.34 enrollment beginning any time before the following December 1. 10.35 (d) If the commissioner of children, families, and learning 10.36 and the commissioner of human rights determine that the 11.1 policies, procedures, or practices of aschooldistrict are in 11.2 violation of Title VI of the Civil Rights Act of 1964 (Public 11.3 Law Number 88-352) or chapter 363, any pupil in the district may 11.4 submit an application to a nonresident district at any time for 11.5 enrollment beginning at any time. 11.6 For exceptions under this subdivision, the applicant, the 11.7 applicant's parent or guardian, the district of residence, and 11.8 the district of attendance must observe, in a prompt and 11.9 efficient manner, the application and notice procedures in 11.10 subdivisions 4 and 6, except that the application and notice 11.11 deadlines do not apply. 11.12 Sec. 15. Minnesota Statutes 1996, section 120.0621, as 11.13 amended by Laws 1997, First Special Session chapter 4, article 11.14 4, sections 1, 2, and 3, is amended to read: 11.15 120.0621 [ENROLLMENT OPTIONS PROGRAMS IN BORDER STATES.] 11.16 Subdivision 1. [OPTIONS FOR ENROLLMENT IN ADJOINING 11.17 STATES.] Minnesota pupils and pupils residing in adjoining 11.18 states may enroll inschooldistricts in the other state 11.19 according to: 11.20 (1) section 120.08, subdivision 2; or 11.21 (2) this section. 11.22 Subd. 2. [PUPILS IN MINNESOTA.] A Minnesota resident pupil 11.23 may enroll in aschooldistrict in an adjoining state if the 11.24 district to be attended borders Minnesota. 11.25 Subd. 3. [PUPILS IN BORDERING STATES.] A non-Minnesota 11.26 pupil who resides in an adjoining state in aschooldistrict 11.27 that borders Minnesota may enroll in a Minnesotaschooldistrict 11.28 if either theschoolboard of the district in which the pupil 11.29 resides or state in which the pupil resides pays tuition to the 11.30schooldistrict in which the pupil is enrolled. 11.31 Subd. 3a. [CANADIAN PUPILS.] A pupil who resides in Canada 11.32 may enroll in a Minnesotaschooldistrict if the province in 11.33 which the pupil resides pays tuition to theschooldistrict in 11.34 which the pupil is enrolled. A pupil may enroll either full 11.35 time or part time for all instructional programs and shall be 11.36 considered eligible for all other purposes for all other 12.1 programs offered by the district. The tuition must be an amount 12.2 that is at least comparable to the tuition specified in section 12.3 120.08, subdivision 1. Aschooldistrict may accept funds from 12.4 any international agency for these programs. 12.5 Subd. 4. [PROCEDURAL REQUIREMENTS.] Except as otherwise 12.6 provided in this section, the rights and duties set forth in 12.7 section 120.062 apply to Minnesota pupils, parents, andschool12.8 districts if a pupil enrolls in a nonresident district according 12.9 to this section. 12.10 Subd. 5a. [TUITION PAYMENTS.] In each odd-numbered year, 12.11 before March 1, the commissionershallmust agree to rates of 12.12 tuition for Minnesota elementary and secondary pupils attending 12.13 in other states for the next two fiscal years when the other 12.14 state agrees to negotiate tuition rates. The commissionershall12.15 must negotiate equal, reciprocal rates with the designated 12.16 authority in each state for pupils who reside in an adjoining 12.17 state and enroll in a Minnesotaschooldistrict. The rates must 12.18 be at least equal to the tuition specified in section 120.08, 12.19 subdivision 1. If the other state does not agree to negotiate a 12.20 general tuition rate, a Minnesota school district may negotiate 12.21 a tuition rate with the school district in the other state that 12.22 sends a pupil to or receives a pupil from the Minnesota school 12.23 district. The tuition rate for a pupil with a disability must 12.24 be equal to the actual cost of instruction and services 12.25 provided. The resident district of a Minnesota pupil attending 12.26 in another state under this section must pay the amount of 12.27 tuition agreed upon in this section to the district of 12.28 attendance, prorated on the basis of the proportion of the 12.29 school year attended. 12.30 Subd. 5b. [TRANSPORTATION OF STUDENTS.] (a) The agreement 12.31 under subdivision 5a with each state must specify that the 12.32 attending district in each state transport a pupil from the 12.33 district boundary to the school of attendance. 12.34 (b) Notwithstanding paragraph (a), the districts of 12.35 residence and attendance may agree that either district may 12.36 provide transportation from a pupil's home or agreed upon 13.1 location to school. Transportation aid for Minnesota students 13.2 eligible for aidshallmust be paid only for transportation 13.3 within the resident district. 13.4 Subd. 6. [EFFECTIVE IF RECIPROCAL.] This section is 13.5 effective with respect to South Dakota upon enactment of 13.6 provisions by South Dakota that the commissioner determines are 13.7 essentially similar to the provisions for Minnesota pupils in 13.8 this section.After July 1, 1993,This section is effective 13.9 with respect to any other bordering state upon enactment of 13.10 provisions by the bordering state that the commissioner 13.11 determines are essentially similar to the provisions for 13.12 Minnesota pupils in this section. 13.13 Subd. 7. [APPEAL TO THE COMMISSIONER.] If a Minnesota 13.14 school district cannot agree with an adjoining state on a 13.15 tuition rate for a Minnesota student attending school in that 13.16 state and that state has met the requirements in subdivision 6, 13.17 then the student's parent or guardian may request that the 13.18 commissioner agree on a tuition rate for the student. The 13.19 Minnesotaschooldistrict must pay the amount of tuition the 13.20 commissioner agrees upon. 13.21 Sec. 16. Minnesota Statutes 1996, section 120.075, 13.22 subdivision 1, is amended to read: 13.23 Subdivision 1. [PREVIOUS ENROLLMENT.] Any pupil who, 13.24 pursuant to the provisions of Minnesota Statutes 1976, section 13.25 120.065, or Minnesota Statutes, 1977 Supplement, section 123.39, 13.26 subdivision 5a, was enrolled on either January 1, 1978, or April 13.27 5, 1978, in aschooldistrict of which the pupil was not a 13.28 resident may continue in enrollment in that district. 13.29 Sec. 17. Minnesota Statutes 1996, section 120.075, 13.30 subdivision 2, is amended to read: 13.31 Subd. 2. [UNDER SCHOOL AGE.] Any child who was under 13.32 school age on either January 1, 1978, or April 5, 1978, but who 13.33 otherwise would have qualified pursuant to the provisions of 13.34 Minnesota Statutes 1976, section 120.065, or Minnesota Statutes, 13.35 1977 Supplement, section 123.39, subdivision 5a, for enrollment 13.36 in aschooldistrict of which the child was not a resident may 14.1 enroll in that district. 14.2 Sec. 18. Minnesota Statutes 1996, section 120.075, 14.3 subdivision 3a, is amended to read: 14.4 Subd. 3a. [ADOPTED CHILD.] Any child who was born on or 14.5 before January 1, 1978 but who was adopted after January 1, 1978 14.6 and whose adoptive parent on January 1, 1978 owned property 14.7 residence upon which would have qualified the child for 14.8 enrollment pursuant to Minnesota Statutes 1976, section 120.065, 14.9 in aschooldistrict of which the child was not a resident may 14.10 enroll in that district. Any child who was born on or before 14.11 January 1, 1978 but who was adopted after January 1, 1978 and 14.12 whose adoptive parent on January 1, 1978 owned or was a tenant 14.13 upon property so as to qualify a child for enrollment pursuant 14.14 to Minnesota Statutes, 1977 Supplement, section 123.39, 14.15 subdivision 5a, in aschooldistrict of which the child was not 14.16 a resident may enroll in that district. 14.17 Sec. 19. Minnesota Statutes 1996, section 120.075, 14.18 subdivision 4, is amended to read: 14.19 Subd. 4. [SIBLING OF QUALIFIED PUPIL.] Subdivisions 1, 1a, 14.20 2, 3 and 3a shall also apply to any brother or sister of a 14.21 qualified pupil who is related to that pupil by blood, adoption, 14.22 or marriage and to any foster child of that pupil's parents. 14.23 The enrollment of any pupil pursuant to subdivision 1, 2, 3 or 14.24 3a and of a brother or sister of that pupil or of a foster child 14.25 of that pupil's parents pursuant to this subdivisionshallmust 14.26 remain subject to the provisions of Minnesota Statutes 1976, 14.27 section 120.065 and Minnesota Statutes, 1977 Supplement, section 14.28 123.39, subdivision 5a, as they read on January 1, 1978. 14.29 Sec. 20. Minnesota Statutes 1996, section 120.0751, 14.30 subdivision 1, is amended to read: 14.31 Subdivision 1. [COMMISSIONER MAY PERMIT ENROLLMENT.] The 14.32 commissioner may permit a pupil to enroll in aschooldistrict 14.33 of which the pupil is not a resident under this section. 14.34 Sec. 21. Minnesota Statutes 1996, section 120.0751, 14.35 subdivision 2, is amended to read: 14.36 Subd. 2. [APPLICATION TO THE COMMISSIONER.] The pupil or 15.1 the pupil's parent or guardianshallmust make application to 15.2 the commissioner, explaining the particular circumstanceswhich15.3 that make the nonresident district the appropriate district of 15.4 attendance for the pupil. The application must be signed by the 15.5 pupil's parent or guardian and the superintendent of the 15.6 nonresident district. 15.7 Sec. 22. Minnesota Statutes 1996, section 120.0751, 15.8 subdivision 3, is amended to read: 15.9 Subd. 3. [CRITERIA FOR APPROVAL.] In approving or 15.10 disapproving the application the commissionershallmust 15.11 consider the following: 15.12(a)(1) if the circumstances of the pupil are similar or 15.13 analogous to the exceptions permitted by section 120.075, 15.14 whether attending school in the district of residence creates a 15.15 particular hardship for the pupil; or 15.16(b)(2) if the pupil has been continuously enrolled for at 15.17 least two years in a district of which the pupil was not a 15.18 resident because of an error made in good faith about the actual 15.19 district of residence, whether attending school in the district 15.20 of residence creates a particular hardship for the pupil. If 15.21 the commissioner finds that a good faith error was made and that 15.22 attending school in the district of residence would create a 15.23 particular hardship for the siblings of that pupil or foster 15.24 children of that pupil's parents, the commissioner may 15.25 separately approve an application for any or all of the siblings 15.26 of the pupil who are related by blood, adoption, or marriage and 15.27 for foster children of the pupil's parents. 15.28 Sec. 23. Minnesota Statutes 1996, section 120.0751, 15.29 subdivision 4, is amended to read: 15.30 Subd. 4. [DECISION DEADLINE.] The commissionershallmust 15.31 render its decision in each case within 60 days of receiving the 15.32 application in subdivision 2. 15.33 Sec. 24. Minnesota Statutes 1996, section 120.0751, 15.34 subdivision 5, is amended to read: 15.35 Subd. 5. [FORMS.] The commissionershallmust provide the 15.36 forms required by subdivision 2 andshallmust adopt the 16.1 procedures necessary to implement this section. 16.2 Sec. 25. Minnesota Statutes 1996, section 120.0752, 16.3 subdivision 1, is amended to read: 16.4 Subdivision 1. [ENROLLMENT EXCEPTION.] A pupil may enroll 16.5 in aschooldistrict of which the pupil is not a resident under 16.6 this section. 16.7 Sec. 26. Minnesota Statutes 1996, section 120.0752, 16.8 subdivision 2, is amended to read: 16.9 Subd. 2. [BOARD APPROVAL.] The pupil's parent or guardian 16.10 must receive the approval of theschoolboard of the nonresident 16.11 district and theschoolboard of the resident district. The 16.12 nonresidentschoolboard shall notify the residentschoolboard 16.13 of the approval. 16.14 Sec. 27. Minnesota Statutes 1996, section 120.0752, 16.15 subdivision 3, is amended to read: 16.16 Subd. 3. [11TH AND 12TH GRADE STUDENTS.] Notwithstanding 16.17 subdivision 2, an 11th or 12th grade pupil who has been enrolled 16.18 in a district and whose parent or guardian moves to another 16.19 district, may continue to enroll in the nonresident district 16.20 upon the approval of theschoolboard of the nonresident 16.21 district. The approval of theschoolboard of the pupil's 16.22 resident district is not required. 16.23 Sec. 28. Minnesota Statutes 1996, section 120.08, is 16.24 amended to read: 16.25 120.08 [ATTENDANCE; SCHOOL IN ANOTHER STATE; SEVERANCE 16.26 PAY.] 16.27 Subdivision 1. [ATTENDANCE IN ANOTHER STATE.] Any person 16.28 under 21 years of age residing in any district not maintaining a 16.29 secondary school who has successfully completed the elementary 16.30 school may, with the consent of the board of such district, 16.31 attend any secondary school of a district in an adjoining state 16.32 willing to admit the person,whichif the secondary school is 16.33 nearer to the place of residence than anydulyestablished 16.34 secondary school in Minnesota, the distances being measured by 16.35 the usual traveled routes. Any tuition charged by the district 16.36 so attendedshallmust be paid to the district attended by the 17.1 district in which the person resides. This tuitionshallmust 17.2 not be more than (a)suchthe district charges nonresident 17.3 pupils of that state, (b) the average maintenance cost exclusive 17.4 of transportation per pupil unit in average daily membership in 17.5 the school attended, nor (c) the tuition rate provided for in 17.6 section 124.18, subdivision 2. 17.7 Any pupil attending a secondary school in an adjoining 17.8 state for whom tuition is paid from district funds is entitled 17.9 to transportation services in accordance with Minnesota Statutes. 17.10 Subd. 2. [TUITION.] Aschoolboard of a district 17.11 maintaining a secondary school may by a majority vote provide 17.12 for the instruction of any resident pupil attending an 17.13 elementary school, a middle school, or a secondary school in 17.14 aschooldistrict in an adjoining state. Any charge for tuition 17.15 or transportation,by the district in the adjoining state, shall17.16 must be paid by the resident district. The pupilshallmust be 17.17 considered a pupil of the resident district for the purposes of 17.18 state aid. 17.19 Subd. 3. [SEVERANCE PAY.] A districtshallmust pay 17.20 severance pay to a teacher who is placed on unrequested leave of 17.21 absence by the district as a result of an agreement under this 17.22 section. A teacher is eligible under this subdivision if the 17.23 teacher: 17.24 (1) is a teacher, as defined in section 125.12, subdivision 17.25 1, but not a superintendent; 17.26 (2) has a continuing contract with the district according 17.27 to section 125.12, subdivision 4. 17.28 The amount of severance payshallmust be equal to the 17.29 teacher's salary for the school year during which the teacher 17.30 was placed on unrequested leave of absence minus the gross 17.31 amount the teacher was paid during the 12 months following the 17.32 teacher's termination of salary, by an entity whose teachers by 17.33 statute or rule must possess a valid Minnesota teaching license, 17.34 and minus the amount a teacher receives as severance or other 17.35 similar pay according to a contract with the district or 17.36 district policy. These entities include, but are not limited 18.1 to, theschooldistrict that placed the teacher on unrequested 18.2 leave of absence, anotherschooldistrict in Minnesota, an 18.3 education district, an intermediate school district, a SC, a 18.4 board formed under section 471.59, a state residential academy, 18.5 the Lola and Rudy Perpich Minnesota center for arts education, a 18.6 vocational center, or a special education cooperative. These 18.7 entities do not include aschooldistrict in another state, a 18.8 Minnesota public post-secondary institution, or a state agency. 18.9 Only amounts earned by the teacher as a substitute teacher or in 18.10 a position requiring a valid Minnesota teaching license shall be 18.11 subtracted. A teacher may decline any offer of employment as a 18.12 teacher without loss of rights to severance pay. 18.13 To determine the amount of severance pay that is due for 18.14 the first six months following termination of the teacher's 18.15 salary, the district may require the teacher to provide 18.16 documented evidence of the teacher's employers and gross 18.17 earnings during that period. The districtshallmust pay the 18.18 teacher the amount of severance pay it determines to be due from 18.19 the proceeds of the levy for this purpose. To determine the 18.20 amount of severance pay that is due for the second six months of 18.21 the 12 months following the termination of the teacher's salary, 18.22 the district may require the teacher to provide documented 18.23 evidence of the teacher's employers and gross earnings during 18.24 that period. The districtshallmust pay the teacher the amount 18.25 of severance pay it determines to be due from the proceeds of 18.26 the levy for this purpose. 18.27 A teacher who receives severance pay under this subdivision 18.28 waives all further reinstatement rights under section 125.12, 18.29 subdivision 6a or 6b. If the teacher receives severance pay, 18.30 the teachershallmust not receive credit for any years of 18.31 service in the district paying severance pay prior to the year 18.32 in which the teacher becomes eligible to receive severance pay. 18.33 The severance pay is subject to section 465.72. The 18.34 district may levy annually according to section 124.912, 18.35 subdivision 1, for the severance pay. 18.36 Sec. 29. Minnesota Statutes 1997 Supplement, section 19.1 120.101, subdivision 5, is amended to read: 19.2 Subd. 5. [AGES AND TERMS.] Every child between seven and 19.3 16 years of ageshallmust receive instruction. Every child 19.4 under the age of seven who is enrolled in a half-day 19.5 kindergarten, or a full-day kindergarten program on alternate 19.6 days, or other kindergarten programs shall receive instruction. 19.7 Except as provided in subdivision 5a, a parent may withdraw a 19.8 child under the age of seven from enrollment at any time. 19.9 Sec. 30. Minnesota Statutes 1996, section 120.101, 19.10 subdivision 5a, is amended to read: 19.11 Subd. 5a. [CHILDREN UNDER SEVEN.] Once a pupil under the 19.12 age of seven is enrolled in kindergarten or a higher grade in a 19.13 public school, the pupil is subject to the compulsory attendance 19.14 provisions of this chapter and section 127.20, unless theschool19.15 board of the district in which the pupil is enrolled has a 19.16 policy that exempts children under seven from this subdivision. 19.17 In aschooldistrict in which children under seven are 19.18 subject to compulsory attendance under this subdivision, 19.19 paragraphs (a) to (c) apply. 19.20 (a) A parent or guardian may withdraw the pupil from 19.21 enrollment in the school for good cause by notifying theschool19.22 district. Good cause includes, but is not limited to, 19.23 enrollment of the pupil in another school, as defined in 19.24 subdivision 4, or the immaturity of the child. 19.25 (b) When the pupil enrolls, the enrolling official must 19.26 provide the parent or guardian who enrolls the pupil with a 19.27 written explanation of the provisions of this subdivision. 19.28 (c) A pupil under the age of seven who is withdrawn from 19.29 enrollment in the public school under paragraph (a) is no longer 19.30 subject to the compulsory attendance provisions of this chapter. 19.31 In aschooldistrict that had adopted a policy to exempt 19.32 children under seven from this subdivision, theschool19.33 district's chief attendance officer must keep the truancy 19.34 enforcement authorities supplied with a copy of theschool19.35 board's current policy certified by the clerk of theschool19.36 board. 20.1 Sec. 31. Minnesota Statutes 1997 Supplement, section 20.2 120.101, subdivision 5c, is amended to read: 20.3 Subd. 5c. [EDUCATION RECORDS.] (a) Aschooldistrict from 20.4 which a student is transferring must transmit the student's 20.5 educational records, within ten business days of a request, to 20.6 theschooldistrict in which the student is enrolling.School20.7 districts must make reasonable efforts to determine theschool20.8 district in which a transferring student is next enrolling in 20.9 order to comply with this subdivision. 20.10 (b) A school district that transmits a student's 20.11 educational records to another school district or other 20.12 educational entity to which the student is transferring must 20.13 include in the transmitted records information about 20.14 disciplinary action taken as a result of any incident in which 20.15 the student possessed or used a dangerous weapon. 20.16 Sec. 32. Minnesota Statutes 1996, section 120.101, 20.17 subdivision 7, is amended to read: 20.18 Subd. 7. [REQUIREMENTS FOR INSTRUCTORS.] A person who is 20.19 providing instruction to a child must meet at least one of the 20.20 following requirements: 20.21 (1) hold a valid Minnesota teaching license in the field 20.22 and for the grade level taught; 20.23 (2) be directly supervised by a person holding a valid 20.24 Minnesota teaching license; 20.25 (3) successfully complete a teacher competency examination; 20.26 (4) provide instruction in a school that is accredited by 20.27 an accrediting agency, recognized according to section 123.935, 20.28 subdivision 7, or recognized by the state boardof education; 20.29 (5) hold a baccalaureate degree; or 20.30 (6) be the parent of a child who is assessed according to 20.31 the procedures in subdivision 8. 20.32 Any person providing instruction in a public school must 20.33 meet the requirements of clause (1). 20.34 Sec. 33. Minnesota Statutes 1996, section 120.101, 20.35 subdivision 8, is amended to read: 20.36 Subd. 8. [ASSESSMENT OF PERFORMANCE.] (a) Each year the 21.1 performance of every child who is not enrolled in a public 21.2 school must be assessed using a nationally norm-referenced 21.3 standardized achievement examination. The superintendent of the 21.4 district in which the child receives instruction and the person 21.5 in charge of the child's instruction must agree about the 21.6 specific examination to be used and the administration and 21.7 location of the examination. 21.8 (b) To the extent the examination in paragraph (a) does not 21.9 provide assessment in all of the subject areas in subdivision 6, 21.10 the parent must assess the child's performance in the applicable 21.11 subject area. This requirement applies only to a parent who 21.12 provides instruction and does not meet the requirements of 21.13 subdivision 7, clause (1), (2), or (3). 21.14 (c) If the results of the assessments in paragraphs (a) and 21.15 (b) indicate that the child's performance on the total battery 21.16 score is at or below the 30th percentile or one grade level 21.17 below the performance level for children of the same age, the 21.18 parentshallmust obtain additional evaluation of the child's 21.19 abilities and performance for the purpose of determining whether 21.20 the child has learning problems. 21.21 (d) A child receiving instruction from a nonpublic school, 21.22 person, or institution that is accredited by an accrediting 21.23 agency, recognized according to section 123.935, subdivision 7, 21.24 or recognized by the state boardof education, is exempt from 21.25 the requirements of this subdivision. 21.26 Sec. 34. Minnesota Statutes 1996, section 120.101, 21.27 subdivision 9, is amended to read: 21.28 Subd. 9. [LEGITIMATE EXEMPTIONS.] A parent, guardian, or 21.29 other person having control of a child may apply to a school 21.30 district to have the child excused from attendance for the whole 21.31 or any part of the time school is in session during any school 21.32 year. Application may be made to any member of the board, a 21.33 truant officer, a principal, or the superintendent. Theschool21.34 board of the district in which the child resides may approve the 21.35 application upon the following being demonstrated to the 21.36 satisfaction of that board: 22.1 (1) That the child's bodily or mental condition is such as 22.2 to prevent attendance at school or application to study for the 22.3 period required; or 22.4 (2) That for the school years 1988-1989 through 1999-2000 22.5 the child has already completed the studies ordinarily required 22.6 in the 10th grade and that for the school years beginning with 22.7 the 2000-2001 school year the child has already completed the 22.8 studies ordinarily required to graduate from high school; or 22.9 (3) That it is the wish of the parent, guardian, or other 22.10 person having control of the child, that the child attend for a 22.11 period or periods not exceeding in the aggregate three hours in 22.12 any week, a school for religious instruction conducted and 22.13 maintained by some church, or association of churches, or any 22.14 Sunday school association incorporated under the laws of this 22.15 state, or any auxiliary thereof. This school for religious 22.16 instructionshallmust be conducted and maintained in a place 22.17 other than a public school building, andin no eventit must 22.18 not, in whole or in part,shallbe conducted and maintained at 22.19 public expense. However, a child may be absent from school on 22.20 such days as the child attends upon instruction according to the 22.21 ordinances of some church. 22.22 Sec. 35. Minnesota Statutes 1996, section 120.101, 22.23 subdivision 10, is amended to read: 22.24 Subd. 10. [ISSUING AND REPORTING EXCUSES.] The clerk or 22.25 any authorized officer of theschoolboardshallmust issue and 22.26 keep a record of such excuses, under such rules as the board may 22.27 from time to time establish. 22.28 Sec. 36. Minnesota Statutes 1997 Supplement, section 22.29 120.1015, is amended to read: 22.30 120.1015 [LENGTH OF SCHOOL YEAR; DAYS OF INSTRUCTION.] 22.31 A school board's annual school calendarshallmust include 22.32 at least three additional days of student instruction beyond the 22.33 number of days of student instruction the board formally adopted 22.34 as its school calendar at the beginning of the 1996-1997 school 22.35 year. 22.36 Sec. 37. Minnesota Statutes 1996, section 120.102, 23.1 subdivision 1, is amended to read: 23.2 Subdivision 1. [REPORTS TO SUPERINTENDENT.] The person in 23.3 charge of providing instruction to a childshallmust submit the 23.4 following information to the superintendent of the district in 23.5 which the child resides: 23.6 (1) by October 1 of each school year, the name, age, and 23.7 address of each child receiving instruction; 23.8 (2) the name of each instructor and evidence of compliance 23.9 with one of the requirements specified in section 120.101, 23.10 subdivision 7; 23.11 (3) an annual instructional calendar showing that 23.12 instruction will occur on at least the number of days required 23.13 under section 120.101, subdivision 5b; and 23.14 (4) for each child instructed by a parent who meets only 23.15 the requirement of section 120.101, subdivision 7, clause (6), a 23.16 quarterly report card on the achievement of the child in each 23.17 subject area required in section 120.101, subdivision 6. 23.18 Sec. 38. Minnesota Statutes 1996, section 120.102, 23.19 subdivision 3, is amended to read: 23.20 Subd. 3. [EXEMPTIONS.] A nonpublic school, person, or 23.21 other institution that is accredited by an accrediting agency, 23.22 recognized according to section 123.935, or recognized by the 23.23 state boardof education, is exempt from the requirements in 23.24 subdivisions 1 and 2, except for the requirement in subdivision 23.25 1, clause (1). 23.26 Sec. 39. Minnesota Statutes 1996, section 120.102, 23.27 subdivision 4, is amended to read: 23.28 Subd. 4. [REPORTS TO THE STATE.] A superintendentshall23.29 must make an annual report to the commissioner of children, 23.30 families, and learning. The report must include the following 23.31 information: 23.32 (1) the number of children residing in the district 23.33 attending nonpublic schools or receiving instruction from 23.34 persons or institutions other than a public school; 23.35 (2) the number of children in clause (1) who are in 23.36 compliance with section 120.101 and this section; and 24.1 (3) the names, ages, and addresses of children whom the 24.2 superintendent has determined are not in compliance with section 24.3 120.101 and this section. 24.4 Sec. 40. Minnesota Statutes 1996, section 120.103, 24.5 subdivision 3, is amended to read: 24.6 Subd. 3. [NOTICE TO PARENTS.] The superintendentshall24.7 must notify the parent, in writing, if a child is alleged to be 24.8 receiving instruction in violation of sections 120.101 and 24.9 120.102. The written notificationshallmust include a list of 24.10 the specific alleged violations. 24.11 Sec. 41. Minnesota Statutes 1996, section 120.103, 24.12 subdivision 4, is amended to read: 24.13 Subd. 4. [FACT-FINDING AND MEDIATION.] If the specified 24.14 alleged violations of the compulsory attendance requirements are 24.15 not corrected within 15 days of receipt of the written 24.16 notification, the superintendentshallmust request fact-finding 24.17 and mediation services from the commissionerof children,24.18families, and learning. 24.19 Sec. 42. Minnesota Statutes 1996, section 120.103, 24.20 subdivision 5, is amended to read: 24.21 Subd. 5. [NOTICE TO COUNTY ATTORNEY.] If the alleged 24.22 violations are not corrected through the fact-finding and 24.23 mediation process under subdivision 4, the superintendentshall24.24 must notify the county attorney of the alleged violations. The 24.25 superintendentshallmust notify the parents, by certified mail, 24.26 of the superintendent's intent to notify the county attorney of 24.27 the alleged violations. 24.28 Sec. 43. Minnesota Statutes 1996, section 120.103, 24.29 subdivision 6, is amended to read: 24.30 Subd. 6. [CRIMINAL COMPLAINT; PROSECUTION.] The county 24.31 attorney in the county in which the alleged violations have 24.32 occurred has jurisdiction to conduct a prosecution for 24.33 violations of section 120.101, 120.102, or 120.103. A criminal 24.34 complaint may be filed in any court in the county exercising 24.35 criminal jurisdiction andshallmust name the persons neglecting 24.36 or refusing to comply with section 120.101, 120.102, or 120.103. 25.1 After the complaint has been filed, a warrantshallmust be 25.2 issued and proceedings in trialshallmust commence as provided 25.3 by law in misdemeanor cases. 25.4 Sec. 44. Minnesota Statutes 1996, section 120.11, is 25.5 amended to read: 25.6 120.11 [SCHOOL BOARDS AND TEACHERS, DUTIES.] 25.7 Itshall beis the duty of each board through its clerk or 25.8 other authorized agent or employee, to report the names of 25.9 children required to attend school, with excuses, if any, 25.10 granted insuchthe district, to the superintendent or 25.11 principalsthereofof the district, within the first week of 25.12 school. Subsequent excuses grantedshallmust beforthwith25.13 reported in the same manner. The clerk or principalshallmust 25.14 provide the teachers in the several schools supervised,with the 25.15 necessary information for the respective grades of school, 25.16 relating to the list of pupils with excuses granted.On receipt25.17of the list of such pupils of school age and the excuses granted25.18 Within five days after receiving the report, the clerk or 25.19 principalsshallmust report the names of children not excused,25.20 who are not attending school, with the names and addresses of 25.21 their parents, to thedistrictsuperintendentwithin five days25.22after receiving the report. 25.23 Sec. 45. Minnesota Statutes 1996, section 120.14, is 25.24 amended to read: 25.25 120.14 [ATTENDANCE OFFICERS.] 25.26 The board of any district may authorize the employment of 25.27 attendance officers, whoshallmust investigate truancy or 25.28 nonattendance at school, make complaints, serve notice and 25.29 process, and attend to the enforcement of all laws and district 25.30 rules regarding school attendance. When any attendance officer 25.31 learns of any case of habitual truancy or continued 25.32 nonattendance of any child required to attend school the officer 25.33shallmust immediately notify the person having control ofsuch25.34 the child toforthwithsendtoand keep the child in school. 25.35 The attendance officershallmust also refer a habitual truant 25.36 child as defined in section 260.015, subdivision 19, and the 26.1 child's parent or legal guardian to appropriate services and 26.2 procedures under chapter 260A, if available within the school 26.3 district. Attendance officers or other designated school 26.4 officialsshallmust ensure that the notice required by section 26.5 260A.03 for a child who is a continuing truant is sent. The 26.6 officershallmust act under the general supervision of 26.7 thedistrictsuperintendent. 26.8 Sec. 46. Minnesota Statutes 1996, section 120.73, 26.9 subdivision 1, is amended to read: 26.10 Subdivision 1. A school board is authorized to require 26.11 payment of fees in the following areas: 26.12 (a) in any program where the resultant product, in excess 26.13 of minimum requirements and at the pupil's option, becomes the 26.14 personal property of the pupil; 26.15 (b) admission fees or charges for extra curricular 26.16 activities, where attendance is optional; 26.17 (c) a security deposit for the return of materials, 26.18 supplies, or equipment; 26.19 (d) personal physical education and athletic equipment and 26.20 apparel, although any pupil may personally provide it if it 26.21 meets reasonable requirements and standards relating to health 26.22 and safety established by theschoolboard; 26.23 (e) items of personal use or productswhichthat a student 26.24 has an option to purchase such as student publications, class 26.25 rings, annuals, and graduation announcements; 26.26 (f) fees specifically permitted by any other statute, 26.27 including but not limited to section 171.04, subdivision 1, 26.28 clause (1); 26.29 (g) field trips considered supplementary to a district 26.30 educational program; 26.31 (h) any authorized voluntary student health and accident 26.32 benefit plan; 26.33 (i) for the use of musical instruments owned or rented by 26.34 the district, a reasonable rental fee not to exceed either the 26.35 rental cost to the district or the annual depreciation plus the 26.36 actual annual maintenance cost for each instrument; 27.1 (j) transportation of pupils to and from extra curricular 27.2 activities conducted at locations other than school, where 27.3 attendance is optional; 27.4 (k) transportation of pupils to and from school for which 27.5 aid for fiscal year 1996 is not authorized under Minnesota 27.6 Statutes 1994, section 124.223, subdivision 1, and for which 27.7 levy for fiscal year 1996 is not authorized under Minnesota 27.8 Statutes 1994, section 124.226, subdivision 5, if a district 27.9 charging fees for transportation of pupils establishes 27.10 guidelines for that transportation to ensure that no pupil is 27.11 denied transportation solely because of inability to pay; 27.12 (l) motorcycle classroom education courses conducted 27.13 outside of regular school hours; provided the chargeshallmust 27.14 not exceed the actual cost of these courses to the school 27.15 district; 27.16 (m) transportation to and from post-secondary institutions 27.17 for pupils enrolled under the post-secondary enrollment options 27.18 program under section 123.39, subdivision 16. Fees collected 27.19 for this service must be reasonable andshallmust be used to 27.20 reduce the cost of operating the route. Families who qualify 27.21 for mileage reimbursement under section 123.3514, subdivision 8, 27.22 may use their state mileage reimbursement to pay this fee. If 27.23 no fee is charged, districtsshallmust allocate costs based on 27.24 the number of pupils riding the route. 27.25 Sec. 47. Minnesota Statutes 1996, section 120.73, 27.26 subdivision 2a, is amended to read: 27.27 Subd. 2a. Students may be required to furnish their own 27.28 transportation to and from an instructional community-based 27.29 employment stationwhichthat is part of an approved 27.30 occupational experience secondary vocational program. As an 27.31 alternative, aschoolboard may require the payment of 27.32 reasonable fees for transportation to and from these 27.33 instructional community-based employment stations. This 27.34 subdivisionshallonlybe appliedapplies to students who 27.35 receive remuneration for their participation in these programs. 27.36 Sec. 48. Minnesota Statutes 1996, section 120.73, 28.1 subdivision 2b, is amended to read: 28.2 Subd. 2b. [SCHOOL UNIFORMS.] Notwithstanding section 28.3 120.74, aschoolboard may require students to furnish or 28.4 purchase clothing that constitutes a school uniform if the board 28.5 has adopted a uniform requirement or program for the student's 28.6 school. In adopting a uniform requirement, the board shall 28.7 promote student, staff, parent, and community involvement in the 28.8 program and account for the financial ability of students to 28.9 purchase uniforms. 28.10 Sec. 49. Minnesota Statutes 1996, section 120.73, 28.11 subdivision 3, is amended to read: 28.12 Subd. 3. Sections 120.71 to 120.76shallmay not preclude 28.13 the operation of a school storewhereinwhere pupils may 28.14 purchase school supplies and materials. 28.15 Sec. 50. Minnesota Statutes 1996, section 120.73, 28.16 subdivision 4, is amended to read: 28.17 Subd. 4. Aschoolboard may waive anysuchdeposit or fee 28.18 if any pupil or the pupil's parent or guardian is unable to pay 28.19 it. 28.20 Sec. 51. Minnesota Statutes 1996, section 120.74, is 28.21 amended to read: 28.22 120.74 [PROHIBITED FEES.] 28.23 Subdivision 1. (a) Aschoolboard is not authorized to 28.24 charge fees in the following areas: 28.25 (1) textbooks, workbooks, art materials, laboratory 28.26 supplies, towels; 28.27 (2) supplies necessary for participation in any 28.28 instructional course except as authorized in sections 120.73 and 28.29 120.75; 28.30 (3) field tripswhichthat are required as a part of a 28.31 basic education program or course; 28.32 (4) graduation caps, gowns, any specific form of dress 28.33 necessary for any educational program, and diplomas; 28.34 (5) instructional costs for necessary school personnel 28.35 employed in any course or educational program required for 28.36 graduation; 29.1 (6) library books required to be utilized for any 29.2 educational course or program; 29.3 (7) admission fees, dues, or fees for any activity the 29.4 pupil is required to attend; 29.5 (8) any admission or examination cost for any required 29.6 educational course or program; 29.7 (9) locker rentals; 29.8 (10) transportation of pupils (i) for which state 29.9 transportation aid for fiscal year 1996 is authorized pursuant 29.10 to Minnesota Statutes 1994, section 124.223, or (ii) for which a 29.11 levy for fiscal year 1996 is authorized under Minnesota Statutes 29.12 1994, section 124.226, subdivision 5. 29.13 (b) Notwithstanding paragraph (a), clauses (1) and (6), a 29.14schoolboard may charge fees for textbooks, workbooks, and 29.15 library books, lost or destroyed by students. The board must 29.16 annually notify parents or guardians and students about its 29.17 policy to charge a fee under this paragraph. 29.18 Subd. 2. No pupil's rights or privileges, including the 29.19 receipt of grades or diplomas may be denied or abridged for 29.20 nonpayment of fees; but this provisionshalldoes not prohibit a 29.21schooldistrict from maintaining any action provided by law for 29.22 the collection ofsuchfees authorized by sections 120.73 and 29.23 120.75. 29.24 Sec. 52. Minnesota Statutes 1996, section 120.75, is 29.25 amended to read: 29.26 120.75 [HEARING.] 29.27 Subdivision 1. [PUBLIC HEARING.]Prior toBefore the 29.28 initiation of any fee not authorized or prohibited by sections 29.29 120.73 and 120.74, the localschoolboardshallmust hold a 29.30 public hearing within the district upon three weeks published 29.31 notice in the district's official newspaper, or such notice as 29.32 is otherwise required for a regularschoolboard meeting given 29.33 three weeksprior tobefore the hearing on the proposed adoption 29.34 of the policy. 29.35 Sec. 53. Minnesota Statutes 1996, section 120.76, is 29.36 amended to read: 30.1 120.76 [POST-SECONDARY INSTRUCTIONAL PROGRAMS.] 30.2 Sections 120.71 to 120.76shallmay not be construed to 30.3 prohibit aschoolboard from charging reasonable fees for goods 30.4 and services provided in connection with any post-secondary 30.5 instructional program, including but not limited to vocational 30.6 technical, veteran farmer cooperative training, and community 30.7 education programs, and continuing education and evening school 30.8 programs other than those conducted pursuant to section 124.26. 30.9 Sec. 54. Minnesota Statutes 1996, section 123.35, 30.10 subdivision 8a, is amended to read: 30.11 Subd. 8a. [SECONDARY SCHOOL PROGRAMS.] The board may 30.12 permit a person who is over the age of 21 or who has graduated 30.13 from high school to enroll as a part-time student in a class or 30.14 program at a secondary school if there is space available. In 30.15 determining if there is space available, full-time public school 30.16 students, shared-time students, and students returning to 30.17 complete a regular course of study shall be given priority over 30.18 part-time students seeking enrollment pursuant to this 30.19 subdivision. The following are not prerequisites for enrollment: 30.20(a)(1) residency in the school district; 30.21(b)(2) United States citizenship; or 30.22(c)(3) for a person over the age of 21, a high school 30.23 diploma or equivalency certificate. A person may enroll in a 30.24 class or program even if that person attends evening school, an 30.25 adult or continuing education, or a post-secondary educational 30.26 program or institution. 30.27 Sec. 55. Minnesota Statutes 1996, section 127.19, is 30.28 amended to read: 30.29 127.19 [OFFICERS, TEACHERS; NEGLECT OF DUTY; PENALTY.] 30.30 Any school officer, truant officer, public or nonpublic 30.31 school teacher, principal, district superintendent, or person 30.32 providing instruction other than a parent refusing, willfully 30.33 failing, or neglecting to perform any duty imposed by sections 30.34 120.101 to 120.14 is guilty of a misdemeanor; and, upon30.35conviction,. All persons found guilty shall be punished for 30.36 each offense by a fine of not more than $10 or by imprisonment 31.1 for not more than ten days. All fines, when collected, shall be 31.2 paid into the county treasury for the benefit of the school 31.3 district in which the offense is committed. 31.4 Sec. 56. Minnesota Statutes 1996, section 127.20, is 31.5 amended to read: 31.6 127.20 [VIOLATIONS; PENALTIES.] 31.7 Any person who fails or refuses to provide for instruction 31.8 of a child of whom the person has legal custody, and who is 31.9 required by section 120.101, subdivision 5, to receive 31.10 instruction, when notified so to do by a truant officer or other 31.11 official, or any person who induces or attempts to induce any 31.12suchchild unlawfully to be absent from school, or who knowingly 31.13 harbors or employs, while school is in session, any child 31.14 unlawfully absent from school, shall be guilty of a 31.15 misdemeanor. Any fines collected shall be paid into the county 31.16 treasury for the benefit of the school district in which the 31.17 offense is committed. 31.18 Sec. 57. [REPEALER.] 31.19 Minnesota Statutes 1996, section 120.90, is repealed. 31.20 Sec. 58. [INSTRUCTION TO REVISOR.] 31.21 The revisor of statutes shall renumber each section of 31.22 Minnesota Statutes listed in column A with the number listed in 31.23 column B. The revisor shall also make necessary cross-reference 31.24 changes consistent with the renumbering. 31.25 Column A Column B 31.26 120.01 120A.01 31.27 120.011 120A.02 31.28 120.0112 120A.03 31.29 120.02, subd. 1 120A.04, subd. 1 31.30 subd. 2 subd. 4 31.31 subd. 3 subd. 8 31.32 subd. 4 subd. 3 31.33 subd. 5 subd. 6 31.34 subd. 6 subd. 16 31.35 subd. 8 subd. 7 31.36 subd. 9 subd. 2 32.1 subd. 12 subd. 15 32.2 subd. 13 subd. 5 32.3 subd. 14 subd. 10 32.4 subd. 15 subd. 14 32.5 subd. 18 subd. 12 32.6 120.05, subd. 2 120A.04, subd. 9 32.7 subd. 3 subd. 11 32.8 subd. 4 subd. 13 32.9 subd. 5 subd. 17 32.10 120.06, subd. 1 120A.10, subd. 1 32.11 subd. 2a subd. 2 32.12 subd. 3 subd. 3 32.13 123.35, subd. 8a 120A.11, subd. 1 32.14 subd. 9 subd. 2 32.15 120.062, subd. 2 120A.12, subd. 1 32.16 subd. 3 subd. 2 32.17 subd. 4 subd. 3 32.18 subd. 5 subd. 4 32.19 subd. 6 subd. 5 32.20 subd. 7 subd. 6 32.21 subd. 8a subd. 7 32.22 subd. 9 subd. 8 32.23 subd. 10 subd. 9 32.24 subd. 11 subd. 10 32.25 subd. 12 subd. 11 32.26 120.0621, subd. 1 120A.13, subd. 1 32.27 subd. 2 subd. 2 32.28 subd. 3 subd. 3 32.29 subd. 3a subd. 4 32.30 subd. 4 subd. 5 32.31 subd. 5a subd. 6 32.32 subd. 5b subd. 7 32.33 subd. 6 subd. 8 32.34 subd. 7 subd. 9 32.35 120.08 120A.14 32.36 120.075, subd. 1 120A.15, subd. 1 33.1 subd. 1a subd. 2 33.2 subd. 2 subd. 3 33.3 subd. 3 subd. 4 33.4 subd. 3a subd. 5 33.5 subd. 4 subd. 6 33.6 subd. 5 subd. 7 33.7 120.0751 120A.16 33.8 120.0752 120A.17 33.9 120.063 120A.19 33.10 120.101, subd. 1 120A.20, subd. 1 33.11 subd. 2 subd. 2 33.12 subd. 3 subd. 3 33.13 subd. 4 subd. 4 33.14 subd. 5 subd. 5 33.15 subd. 5a subd. 6 33.16 subd. 5c subd. 7 33.17 subd. 5d subd. 8 33.18 subd. 6 subd. 9 33.19 subd. 7 subd. 10 33.20 subd. 8 subd. 11 33.21 subd. 9 subd. 12 33.22 subd. 10 subd. 13 33.23 120.102 120A.21 33.24 120.103 120A.22 33.25 120.11 120A.23 33.26 120.14 120A.24 33.27 120.19 120A.25 33.28 120.20 120A.26 33.29 120.1015 120A.28 33.30 120.106 120A.29 33.31 120.73, subd. 1 120A.40, subd. 1 33.32 subd. 2 subd. 2 33.33 subd. 2a subd. 3 33.34 subd. 2b subd. 4 33.35 subd. 3 subd. 5 33.36 subd. 4 subd. 6 34.1 120.74 120A.41 34.2 120.75 120A.42 34.3 120.76 120A.43 34.4 123.35, subd. 8b 120A.44 34.5 121.11, subd. 14 120A.45 34.6 ARTICLE 2 34.7 CHAPTER 120B 34.8 EDUCATIONAL OPPORTUNITIES 34.9 Section 1. [120B.01] [DEFINITIONS.] 34.10 For purposes of this chapter, the words defined in section 34.11 120.02 have the same meaning. 34.12 Sec. 2. Minnesota Statutes 1996, section 120.064, 34.13 subdivision 4, is amended to read: 34.14 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 34.15 authorize one or more licensed teachers under section 125.05, 34.16 subdivision 1, to operate a charter school subject to approval 34.17 by the state boardof education. If aschoolboard elects not 34.18 to sponsor a charter school, the applicant may appeal theschool34.19 board's decision to the state boardof educationif two members 34.20 of theschoolboard voted to sponsor the school. If the state 34.21 board authorizes the school, the state boardshallmust sponsor 34.22 the school according to this section. The schoolshallmust be 34.23 organized and operated as a cooperative under chapter 308A or 34.24 nonprofit corporation under chapter 317A. 34.25 (b) Before the operators may form and operate a school, the 34.26 sponsor must file an affidavit with the state boardof education34.27 stating its intent to authorize a charter school. The affidavit 34.28 must state the terms and conditions under which the sponsor 34.29 would authorize a charter school. The state board must approve 34.30 or disapprove the sponsor's proposed authorization within 60 34.31 days of receipt of the affidavit. Failure to obtain state board 34.32 approval precludes a sponsor from authorizing the charter school 34.33 that was the subject of the affidavit. 34.34 (c) The operators authorized to organize and operate a 34.35 schoolshallmust hold an election for members of the school's 34.36 board of directors in a timely manner after the school is 35.1 operating. Any staff members who are employed at the school, 35.2 including teachers providing instruction under a contract with a 35.3 cooperative, and all parents of children enrolled in the school 35.4 may participate in the election. Licensed teachers employed at 35.5 the school, including teachers providing instruction under a 35.6 contract with a cooperative, must be a majority of the members 35.7 of the board of directors. A provisional board may operate 35.8 before the election of the school's board of directors. Board 35.9 of director meetings must comply with section 471.705. 35.10 (d) The granting or renewal of a charter by a sponsoring 35.11 entityshallmust not be conditioned upon the bargaining unit 35.12 status of the employees of the school. 35.13 Sec. 3. Minnesota Statutes 1996, section 120.064, 35.14 subdivision 4a, is amended to read: 35.15 Subd. 4a. [CONVERSION OF EXISTING SCHOOLS.] Aschoolboard 35.16 may convert one or more of its existing schools to charter 35.17 schools under this section if 90 percent of the full-time 35.18 teachers at the school sign a petition seeking conversion. The 35.19 conversion must occur at the beginning of an academic year. 35.20 Sec. 4. Minnesota Statutes 1996, section 120.064, 35.21 subdivision 5, is amended to read: 35.22 Subd. 5. [CONTRACT.] The sponsor's authorization for a 35.23 charter schoolshallmust be in the form of a written contract 35.24 signed by the sponsor and the board of directors of the charter 35.25 school. The contract for a charter schoolshallmust be in 35.26 writing and contain at least the following: 35.27 (1) a description of a program that carries out one or more 35.28 of the purposes in subdivision 1; 35.29 (2) specific outcomes pupils are to achieve under 35.30 subdivision 10; 35.31 (3) admission policies and procedures; 35.32 (4) management and administration of the school; 35.33 (5) requirements and procedures for program and financial 35.34 audits; 35.35 (6) how the school will comply with subdivisions 8, 13, 15, 35.36 and 21; 36.1 (7) assumption of liability by the charter school; 36.2 (8) types and amounts of insurance coverage to be obtained 36.3 by the charter school; and 36.4 (9) the term of the contract, which may be up to three 36.5 years. 36.6 Sec. 5. Minnesota Statutes 1996, section 120.064, 36.7 subdivision 7, is amended to read: 36.8 Subd. 7. [PUBLIC STATUS; EXEMPTION FROM STATUTES AND 36.9 RULES.] A charter school is a public school and is part of the 36.10 state's system of public education. Except as provided in this 36.11 section, a charter school is exempt from all statutes and rules 36.12 applicable to a school, aschoolboard, or aschooldistrict, 36.13 although it may elect to comply with one or more provisions of 36.14 statutes or rules. 36.15 Sec. 6. Minnesota Statutes 1997 Supplement, section 36.16 120.064, subdivision 8, is amended to read: 36.17 Subd. 8. [REQUIREMENTS.] (a) A charter school shall meet 36.18 all applicable state and local health and safety requirements. 36.19 (b) A school sponsored by a school board may be located in 36.20 any district, unless the school board of the district of the 36.21 proposed location disapproves by written resolution. If such a 36.22schoolboard denies a request to locate within its boundaries a 36.23 charter school sponsored by another school board, the sponsoring 36.24 school board may appeal to the state boardof education. If the 36.25 state board authorizes the school, the state boardshallmust 36.26 sponsor the school. 36.27 (c) A charter school must be nonsectarian in its programs, 36.28 admission policies, employment practices, and all other 36.29 operations. A sponsor may not authorize a charter school or 36.30 program that is affiliated with a nonpublic sectarian school or 36.31 a religious institution. 36.32 (d) Charter schoolsshallmust not be used as a method of 36.33 providing education or generating revenue for students who are 36.34 being home-schooled. 36.35 (e) The primary focus of a charter school must be to 36.36 provide a comprehensive program of instruction for at least one 37.1 grade or age group from five through 18 years of age. 37.2 Instruction may be provided to people younger than five years 37.3 and older than 18 years of age. 37.4 (f) A charter school may not charge tuition. 37.5 (g) A charter school is subject to andshallmust comply 37.6 with chapter 363 and section 126.21. 37.7 (h) A charter school is subject to andshallmust comply 37.8 with The Pupil Fair Dismissal Act, sections 127.26 to 127.39, 37.9 and the Minnesota public school fee law, sections 120.71 to 37.10 120.76. 37.11 (i) A charter school is subject to the same financial 37.12 audits, audit procedures, and audit requirements as aschool37.13 district. The audit must be consistent with the requirements of 37.14 sections 121.904 to 121.917, except to the extent deviations are 37.15 necessary because of the program at the school. The department 37.16 of children, families, and learning, state auditor, or 37.17 legislative auditor may conduct financial, program, or 37.18 compliance audits. 37.19 (j) A charter school is aschooldistrict for the purposes 37.20 of tort liability under chapter 466. 37.21 Sec. 7. Minnesota Statutes 1996, section 120.064, 37.22 subdivision 9, is amended to read: 37.23 Subd. 9. [ADMISSION REQUIREMENTS.] A charter school may 37.24 limit admission to: 37.25 (1) pupils within an age group or grade level; 37.26 (2) people who are eligible to participate in the 37.27 graduation incentives program under section 126.22; or 37.28 (3) residents of a specific geographic area where the 37.29 percentage of the population of non-Caucasian people of that 37.30 area is greater than the percentage of the non-Caucasian 37.31 population in the congressional district in which the geographic 37.32 area is located, and as long as the school reflects the racial 37.33 and ethnic diversity of the specific area. 37.34 A charter school shall enroll an eligible pupil who submits 37.35 a timely application, unless the number of applications exceeds 37.36 the capacity of a program, class, grade level, or building. In 38.1 this case, pupilsshallmust be accepted by lot. 38.2 A charter school may not limit admission to pupils on the 38.3 basis of intellectual ability, measures of achievement or 38.4 aptitude, or athletic ability. 38.5 Sec. 8. Minnesota Statutes 1997 Supplement, section 38.6 120.064, subdivision 10, is amended to read: 38.7 Subd. 10. [PUPIL PERFORMANCE.] A charter school must 38.8 design its programs to at least meet the outcomes adopted by the 38.9 state boardof educationfor public school students. In the 38.10 absence of state board requirements, the school must meet the 38.11 outcomes contained in the contract with the sponsor. The 38.12 achievement levels of the outcomes contained in the contract may 38.13 exceed the achievement levels of any outcomes adopted by the 38.14 state board for public school students. 38.15 Sec. 9. Minnesota Statutes 1996, section 120.064, 38.16 subdivision 11, is amended to read: 38.17 Subd. 11. [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 38.18 charter schoolshallmust employ or contract with necessary 38.19 teachers, as defined by section 125.03, subdivision 1, who hold 38.20 valid licenses to perform the particular service for which they 38.21 are employed in the school. The school may employ necessary 38.22 employees who are not required to hold teaching licenses to 38.23 perform duties other than teaching and may contract for other 38.24 services. The school may discharge teachers and nonlicensed 38.25 employees. 38.26 The board of directors also shall decide matters related to 38.27 the operation of the school, including budgeting, curriculum and 38.28 operating procedures. 38.29 Sec. 10. Minnesota Statutes 1996, section 120.064, 38.30 subdivision 12, is amended to read: 38.31 Subd. 12. [PUPILS WITH A DISABILITY.] A charter school 38.32 must comply with sections 120.03 and 120.17 and rules relating 38.33 to the education of pupils with a disability as though it were a 38.34schooldistrict. 38.35 Sec. 11. Minnesota Statutes 1996, section 120.064, 38.36 subdivision 13, is amended to read: 39.1 Subd. 13. [LENGTH OF SCHOOL YEAR.] A charter schoolshall39.2 must provide instruction each year for at least the number of 39.3 days required by section 120.101, subdivision 5. It may provide 39.4 instruction throughout the year according to sections 120.59 to 39.5 120.67 or 121.585. 39.6 Sec. 12. Minnesota Statutes 1996, section 120.064, 39.7 subdivision 14, is amended to read: 39.8 Subd. 14. [REPORTS.] A charter school must report at least 39.9 annually to its sponsor and the state boardof educationthe 39.10 information required by the sponsor or the state board. The 39.11 reports are public data under chapter 13. 39.12 Sec. 13. Minnesota Statutes 1997 Supplement, section 39.13 120.064, subdivision 14a, is amended to read: 39.14 Subd. 14a. [REVIEW AND COMMENT.] The departmentshallmust 39.15 review and comment on the evaluation, by the chartering school 39.16 district, of the performance of a charter school before the 39.17 charter school's contract is renewed. The information from the 39.18 review and comment shall be reported to the state board of 39.19 education in a timely manner. Periodically, the state board 39.20 shall report trends or suggestions based on the evaluation of 39.21 charter school contracts to the education committees of the 39.22 state legislature. 39.23 Sec. 14. Minnesota Statutes 1996, section 120.064, 39.24 subdivision 15, is amended to read: 39.25 Subd. 15. [TRANSPORTATION.] (a) By July 1 of each year, a 39.26 charter schoolshallmust notify the district in which the 39.27 school is located and the department of children, families, and 39.28 learning if it will provide transportation for pupils 39.29 enrolledatin the school for the fiscal year. 39.30 (b) If a charter school elects to provide transportation 39.31 for pupils, the transportationshallmust be provided by the 39.32 charter school within the district in which the charter school 39.33 is located. The stateshallmust pay transportation aid to the 39.34 charter school according to section 124.248, subdivision 1a. 39.35 For pupils who reside outside the district in which the 39.36 charter school is located, the charter school is not required to 40.1 provide or pay for transportation between the pupil's residence 40.2 and the border of the district in which the charter school is 40.3 located. A parent may be reimbursed by the charter school for 40.4 costs of transportation from the pupil's residence to the border 40.5 of the district in which the charter school is located if the 40.6 pupil is from a family whose income is at or below the poverty 40.7 level, as determined by the federal government. The 40.8 reimbursement may not exceed the pupil's actual cost of 40.9 transportation or 15 cents per mile traveled, whichever is 40.10 less. Reimbursement may not be paid for more than 250 miles per 40.11 week. 40.12 At the time a pupil enrolls in a charter school, the 40.13 charter schoolshallmust provide the parent or guardian with 40.14 information regarding the transportation. 40.15 (c) If a charter school does not elect to provide 40.16 transportation, transportation for pupils enrolled at the school 40.17shallmust be provided by the district in which the school is 40.18 located, according to sections 120.062, subdivision 9, and 40.19 123.39, subdivision 6, for a pupil residing in the same district 40.20 in which the charter school is located. Transportation may be 40.21 provided by the district in which the school is located, 40.22 according to sections 120.062, subdivision 9, and 123.39, 40.23 subdivision 6, for a pupil residing in a different district. 40.24 Sec. 15. Minnesota Statutes 1996, section 120.064, 40.25 subdivision 17, is amended to read: 40.26 Subd. 17. [INITIAL COSTS.] A sponsor may authorize a 40.27 charter school before the applicant has secured its space, 40.28 equipment, facilities, and personnel if the applicant indicates 40.29 the authority is necessary for it to raise working capital. A 40.30 sponsor may not authorize a school before the state boardof40.31educationhas approved the authorization. 40.32 Sec. 16. Minnesota Statutes 1996, section 120.064, 40.33 subdivision 19, is amended to read: 40.34 Subd. 19. [LEAVE TO TEACH IN A CHARTER SCHOOL.] If a 40.35 teacher employed by aschooldistrict makes a written request 40.36 for an extended leave of absence to teach at a charter school, 41.1 theschooldistrict must grant the leave. Theschooldistrict 41.2 must grant a leave for any number of years requested by the 41.3 teacher, and must extend the leave at the teacher's request. 41.4 Theschooldistrict may require that the request for a leave or 41.5 extension of leave be made up to 90 days before the teacher 41.6 would otherwise have to report for duty. Except as otherwise 41.7 provided in this subdivision and except for section 125.60, 41.8 subdivision 6a, the leave is governed by section 125.60, 41.9 including, but not limited to, reinstatement, notice of 41.10 intention to return, seniority, salary, and insurance. 41.11 During a leave, the teacher may continue to aggregate 41.12 benefits and credits in the teachers' retirement association 41.13 account by paying both the employer and employee contributions 41.14 based upon the annual salary of the teacher for the last full 41.15 pay period before the leave began. The retirement association 41.16 may impose reasonable requirements to efficiently administer 41.17 this subdivision. 41.18 Sec. 17. Minnesota Statutes 1996, section 120.064, 41.19 subdivision 20, is amended to read: 41.20 Subd. 20. [COLLECTIVE BARGAINING.] Employees of the board 41.21 of directors of a charter school may, if otherwise eligible, 41.22 organize under chapter 179A and comply with its provisions. The 41.23 board of directors of a charter school is a public employer, for 41.24 the purposes of chapter 179A, upon formation of one or more 41.25 bargaining units at the school. Bargaining units at the school 41.26shallmust be separate from any other units within the 41.27 sponsoring district, except that bargaining units may remain 41.28 part of the appropriate unit within the sponsoring district, if 41.29 the employees of the school, the board of directors of the 41.30 school, the exclusive representative of the appropriate unit in 41.31 the sponsoring district, and the board of the sponsoring 41.32 district agree to include the employees in the appropriate unit 41.33 of the sponsoring district. 41.34 Sec. 18. Minnesota Statutes 1997 Supplement, section 41.35 120.064, subdivision 20a, is amended to read: 41.36 Subd. 20a. [TEACHER AND OTHER EMPLOYEE RETIREMENT.] (a) 42.1 Teachers in a charter schoolshallmust be public school 42.2 teachers for the purposes of chapters 354 and 354a. 42.3 (b) Except for teachers under paragraph (a), employees in a 42.4 charter schoolshallmust be public employees for the purposes 42.5 of chapter 353. 42.6 Sec. 19. Minnesota Statutes 1996, section 120.064, 42.7 subdivision 21, is amended to read: 42.8 Subd. 21. [CAUSES FOR NONRENEWAL OR TERMINATION.] (a) The 42.9 duration of the contract with a sponsorshallmust be for the 42.10 term contained in the contract according to subdivision 5. The 42.11 sponsor may or may not renew a contract at the end of the term 42.12 for any ground listed in paragraph (b). A sponsor may 42.13 unilaterally terminate a contract during the term of the 42.14 contract for any ground listed in paragraph (b). At least 60 42.15 days before not renewing or terminating a contract, the sponsor 42.16 shall notify the board of directors of the charter school of the 42.17 proposed action in writing. The notice shall state the grounds 42.18 for the proposed action in reasonable detail and that the 42.19 charter school's board of directors may request in writing an 42.20 informal hearing before the sponsor within 14 days of receiving 42.21 notice of nonrenewal or termination of the contract. Failure by 42.22 the board of directors to make a written request for a hearing 42.23 within the 14-day period shall be treated as acquiescence to the 42.24 proposed action. Upon receiving a timely written request for a 42.25 hearing, the sponsor shall give reasonable notice to the charter 42.26 school's board of directors of the hearing date. The sponsor 42.27 shall conduct an informal hearing before taking final action. 42.28 The sponsor shall take final action to renew or not renew a 42.29 contract by the last day of classes in the school year. If the 42.30 sponsor is a localschoolboard, the school's board of directors 42.31 may appeal the sponsor's decision to the state boardof42.32education. 42.33 (b) A contract may be terminated or not renewed upon any of 42.34 the following grounds: 42.35 (1) failure to meet the requirements for pupil performance 42.36 contained in the contract; 43.1 (2) failure to meet generally accepted standards of fiscal 43.2 management; 43.3 (3)forviolations of law; or 43.4 (4) other good cause shown. 43.5 If a contract is terminated or not renewed, the school 43.6shallmust be dissolved according to the applicable provisions 43.7 of chapter 308A or 317A. 43.8 Sec. 20. Minnesota Statutes 1996, section 120.064, 43.9 subdivision 22, is amended to read: 43.10 Subd. 22. [PUPIL ENROLLMENT.] If a contract is not renewed 43.11 or is terminated according to subdivision 21, a pupil who 43.12 attended the school, siblings of the pupil, or another pupil who 43.13 resides in the same place as the pupil may enroll in the 43.14 resident district or may submit an application to a nonresident 43.15 district according to section 120.062 at any time. Applications 43.16 and notices required by section 120.062shallmust be processed 43.17 and provided in a prompt manner. The application and notice 43.18 deadlines in section 120.062 do not apply under these 43.19 circumstances. 43.20 Sec. 21. Minnesota Statutes 1996, section 120.064, 43.21 subdivision 24, is amended to read: 43.22 Subd. 24. [IMMUNITY.] The state boardof education, 43.23 members of the state board, a sponsor, members of the board of a 43.24 sponsor in their official capacity, and employees of a sponsor 43.25 are immune from civil or criminal liability with respect to all 43.26 activities related to a charter school they approve or sponsor. 43.27 The board of directors shall obtain at least the amount of and 43.28 types of insurance required by the contract, according to 43.29 subdivision 5. 43.30 Sec. 22. Minnesota Statutes 1996, section 120.17, 43.31 subdivision 1, is amended to read: 43.32 Subdivision 1. [SPECIAL INSTRUCTION FOR CHILDREN WITH A 43.33 DISABILITY.] Every districtshallmust provide special 43.34 instruction and services, either within the district or in 43.35 another district, for children with a disability who are 43.36 residents of the district and who are disabled as set forth in 44.1 section 120.03. Notwithstanding any age limits in laws to the 44.2 contrary, special instruction and services must be provided from 44.3 birth until September 1 after the child with a disability 44.4 becomes 22 years old but shall not extend beyond secondary 44.5 school or its equivalent, except as provided in section 126.22, 44.6 subdivision 2. Local health, education, and social service 44.7 agenciesshallmust refer children under age five who are known 44.8 to need or suspected of needing special instruction and services 44.9 to the school district. Districts with less than the minimum 44.10 number of eligible children with a disability as determined by 44.11 the state boardshallmust cooperate with other districts to 44.12 maintain a full range of programs for education and services for 44.13 children with a disability. This subdivision does not alter the 44.14 compulsory attendance requirements of section 120.101. 44.15 Sec. 23. Minnesota Statutes 1996, section 120.17, 44.16 subdivision 1b, is amended to read: 44.17 Subd. 1b. [HIGH SCHOOL DIPLOMA.] Upon completion of 44.18 secondary school or the equivalent, a pupil with a disability 44.19 who satisfactorily attains the objectives in the pupil's 44.20 individual education planshallmust be granted a high school 44.21 diploma that is identical to the diploma granted to a pupil 44.22 without a disability. 44.23 Sec. 24. Minnesota Statutes 1996, section 120.17, 44.24 subdivision 2, is amended to read: 44.25 Subd. 2. [METHOD OF SPECIAL INSTRUCTION.] (a) Special 44.26 instruction and services for children with a disability must be 44.27 based on the assessment and individual education plan. The 44.28 instruction and services may be provided by one or more of the 44.29 following methods: 44.30 (1) in connection with attending regular elementary and 44.31 secondary school classes; 44.32 (2) establishment of special classes; 44.33 (3) at the home or bedside of the child; 44.34 (4) in other districts; 44.35 (5) instruction and services by special education 44.36 cooperative centers established under this section, or in 45.1 another member district of the cooperative center to which the 45.2 resident district of the child with a disability belongs; 45.3 (6) in a state residential school or a school department of 45.4 a state institution approved by the commissioner; 45.5 (7) in other states; 45.6 (8) by contracting with public, private, or voluntary 45.7 agencies; 45.8 (9) for children under age five and their families, 45.9 programs and services established through collaborative efforts 45.10 with other agencies; 45.11 (10) for children under age five and their families, 45.12 programs in which children with a disability are served with 45.13 children without a disability; and 45.14 (11) any other method approved by the commissioner. 45.15 (b) Preference shall be given to providing special 45.16 instruction and services to children under age three and their 45.17 families in the residence of the child with the parent or 45.18 primary caregiver, or both, present. 45.19 (c) The primary responsibility for the education of a child 45.20 with a disabilityshallmust remain with the district of the 45.21 child's residence regardless of which method of providing 45.22 special instruction and services is used. If a district other 45.23 than a child's district of residence provides special 45.24 instruction and services to the child, then the district 45.25 providing the special instruction and servicesshallmust notify 45.26 the child's district of residence before the child's individual 45.27 education plan is developed andshallmust provide the district 45.28 of residence an opportunity to participate in the plan's 45.29 development. The district of residence must inform the parents 45.30 of the child about the methods of instruction that are available. 45.31 (d) Paragraphs (e) to (i) may be cited as the "Blind 45.32 Persons' Literacy Rights and Education Act." 45.33 (e) The following definitions apply to paragraphs (f) to 45.34 (i). 45.35 "Blind student" means an individual who is eligible for 45.36 special educational services and who: 46.1 (1) has a visual acuity of 20/200 or less in the better eye 46.2 with correcting lenses or has a limited field of vision such 46.3 that the widest diameter subtends an angular distance of no 46.4 greater than 20 degrees; or 46.5 (2) has a medically indicated expectation of visual 46.6 deterioration. 46.7 "Braille" means the system of reading and writing through 46.8 touch commonly known as standard English Braille. 46.9 "Individualized education plan" means a written statement 46.10 developed for a student eligible for special education and 46.11 services pursuant to this section and section 602(a)(20) of part 46.12 A of the Individuals with Disabilities Education Act, United 46.13 States Code, title 20, section 1401(a). 46.14 (f) In developing an individualized education plan for each 46.15 blind student the presumption must be that proficiency in 46.16 Braille reading and writing is essential for the student to 46.17 achieve satisfactory educational progress. The assessment 46.18 required for each student must include a Braille skills 46.19 inventory, including a statement of strengths and deficits. 46.20 Braille instruction and use are not required by this paragraph 46.21 if, in the course of developing the student's individualized 46.22 education program, team members concur that the student's visual 46.23 impairment does not affect reading and writing performance 46.24 commensurate with ability. This paragraph does not require the 46.25 exclusive use of Braille if other special education services are 46.26 appropriate to the student's educational needs. The provision 46.27 of other appropriate services does not preclude Braille use or 46.28 instruction. Instruction in Braille reading and writingshall46.29 must be available for each blind student for whom the 46.30 multidisciplinary team has determined that reading and writing 46.31 is appropriate. 46.32 (g) Instruction in Braille reading and writing must be 46.33 sufficient to enable each blind student to communicate 46.34 effectively and efficiently with the same level of proficiency 46.35 expected of the student's peers of comparable ability and grade 46.36 level. 47.1 (h) The student's individualized education plan must 47.2 specify: 47.3 (1) the results obtained from the assessment required under 47.4 paragraph (f); 47.5 (2) how Braille will be implemented through integration 47.6 with other classroom activities; 47.7 (3) the date on which Braille instruction will begin; 47.8 (4) the length of the period of instruction and the 47.9 frequency and duration of each instructional session; 47.10 (5) the level of competency in Braille reading and writing 47.11 to be achieved by the end of the period and the objective 47.12 assessment measures to be used; and 47.13 (6) if a decision has been made under paragraph (f) that 47.14 Braille instruction or use is not required for the student: 47.15 (i) a statement that the decision was reached after a 47.16 review of pertinent literature describing the educational 47.17 benefits of Braille instruction and use; and 47.18 (ii) a specification of the evidence used to determine that 47.19 the student's ability to read and write effectively without 47.20 Braille is not impaired. 47.21 (i) Instruction in Braille reading and writing is a service 47.22 for the purpose of special education and services under this 47.23 section. 47.24 (j) Paragraphs (e) to (i)shallmust not be construed to 47.25 supersede any rights of a parent or guardian of a child with a 47.26 disability under federal or state law. 47.27 Sec. 25. Minnesota Statutes 1996, section 120.17, 47.28 subdivision 3, is amended to read: 47.29 Subd. 3. [RULES OFTHESTATE BOARD.] (a) The state board 47.30shall promulgatemust adopt rules relative to qualifications of 47.31 essential personnel, courses of study, methods of instruction, 47.32 pupil eligibility, size of classes, rooms, equipment, 47.33 supervision, parent consultation, and any other rules it deems 47.34 necessary for instruction of children with a disability. These 47.35 rulesshallmust provide standards and procedures appropriate 47.36 for the implementation of and within the limitations of 48.1 subdivisions 3a and 3b. These rulesshallmust also provide 48.2 standards for the discipline, control, management, and 48.3 protection of children with a disability. The state boardshall48.4 must not adopt rules for pupils served in level 1, 2, or 3, as 48.5 defined in Minnesota Rules, part 3525.2340, establishing either 48.6 case loads or the maximum number of pupils that may be assigned 48.7 to special education teachers. The state board, in consultation 48.8 with the departments of health and human services,shallmust 48.9 adopt permanent rules for instruction and services for children 48.10 under age five and their families. These rules are binding on 48.11 state and local education, health, and human services agencies. 48.12 The state boardshallmust adopt rules to determine eligibility 48.13 for special education services. The rulesshallmust include 48.14 procedures and standards by which to grant variances for 48.15 experimental eligibility criteria. The state boardshallmust, 48.16 according to section 14.05, subdivision 4, notify a district 48.17 applying for a variance from the rules within 45 calendar days 48.18 of receiving the request whether the request for the variance 48.19 has been granted or denied. If a request is denied, the 48.20 boardshallmust specify the program standards used to evaluate 48.21 the request and the reasons for denying the request. 48.22 (b) The state's regulatory scheme should support schools by 48.23 assuring that all state special education rules adopted by the 48.24 state boardof educationresult in one or more of the following 48.25 outcomes: 48.26 (1) increased time available to teachers for educating 48.27 students through direct and indirect instruction; 48.28 (2) consistent and uniform access to effective education 48.29 programs for students with disabilities throughout the state; 48.30 (3) reduced inequalities, conflict, and court actions 48.31 related to the delivery of special education instruction and 48.32 services for students with disabilities; 48.33 (4) clear expectations for service providers and for 48.34 students with disabilities; 48.35 (5) increased accountability for all individuals and 48.36 agencies that provide instruction and other services to students 49.1 with disabilities; 49.2 (6) greater focus for the state and local resources 49.3 dedicated to educating students with disabilities; and 49.4 (7) clearer standards for evaluating the effectiveness of 49.5 education and support services for students with disabilities. 49.6 Sec. 26. Minnesota Statutes 1996, section 120.17, 49.7 subdivision 3a, is amended to read: 49.8 Subd. 3a. [SCHOOL DISTRICT OBLIGATIONS.] Every district 49.9shallmust ensurethatthe following: 49.10 (1) all students with disabilities are provided the special 49.11 instruction and services which are appropriate to their needs. 49.12 Where the individual education plan team has determined 49.13 appropriate goals and objectives based on the student's needs, 49.14 including the extent to which the student can be included in the 49.15 least restrictive environment, and where there are essentially 49.16 equivalent and effective instruction, related services, or 49.17 assistive technology devices available to meet the student's 49.18 needs, cost to theschooldistrict may be among the factors 49.19 considered by the team in choosing how to provide the 49.20 appropriate services, instruction, or devices that are to be 49.21 made part of the student's individual education plan. The 49.22 student's needs and the special education instruction and 49.23 services to be providedshallmust be agreed upon through the 49.24 development of an individual education plan. The planshall49.25 must address the student's need to develop skills to live and 49.26 work as independently as possible within the community. By 49.27 grade 9 or age 14, the planshallmust address the student's 49.28 needs for transition from secondary services to post-secondary 49.29 education and training, employment, community participation, 49.30 recreation, and leisure and home living. The plan must include 49.31 a statement of the needed transition services, including a 49.32 statement of the interagency responsibilities or linkages or 49.33 both before secondary services are concluded; 49.34 (2) children with a disability under age five and their 49.35 families are provided special instruction and services 49.36 appropriate to the child's level of functioning and needs; 50.1 (3) children with a disability and their parents or 50.2 guardians are guaranteed procedural safeguards and the right to 50.3 participate in decisions involving identification, assessment 50.4 including assistive technology assessment, and educational 50.5 placement of children with a disability; 50.6 (4) to the maximum extent appropriate, children with a 50.7 disability, including those in public or private institutions or 50.8 other care facilities, are educated with children who are not 50.9 disabled, and that special classes, separate schooling, or other 50.10 removal of children with a disability from the regular 50.11 educational environment occurs only when and to the extent that 50.12 the nature or severity of the disability is such that education 50.13 in regular classes with the use of supplementary services cannot 50.14 be achieved satisfactorily; 50.15 (5) in accordance with recognized professional standards, 50.16 testing and evaluation materials, and proceduresutilizedused 50.17 for the purposes of classification and placement of children 50.18 with a disability are selected and administered so as not to be 50.19 racially or culturally discriminatory; and 50.20 (6) the rights of the child are protected when the parents 50.21 or guardians are not known or not available, or the child is a 50.22 ward of the state. 50.23 Sec. 27. Minnesota Statutes 1996, section 120.17, 50.24 subdivision 3b, is amended to read: 50.25 Subd. 3b. [PROCEDURES FOR DECISIONS.] Every districtshall50.26utilizemust use at least the following procedures for decisions 50.27 involving identification, assessment, and educational placement 50.28 of children with a disability: 50.29 (a) Parents and guardiansshallmust receive prior written 50.30 notice of: 50.31 (1) any proposed formal educational assessment or proposed 50.32 denial of a formal educational assessment of their child; 50.33 (2) a proposed placement of their child in, transfer from 50.34 or to, or denial of placement in a special education program; or 50.35 (3) the proposed provision, addition, denial, or removal of 50.36 special education services for their child;. 51.1 (b) The districtshallmust not proceed with the initial 51.2 formal assessment of a child, the initial placement of a child 51.3 in a special education program, or the initial provision of 51.4 special education services for a child without the prior written 51.5 consent of the child's parent or guardian. The refusal of a 51.6 parent or guardian to consent may be overridden by the decision 51.7 in a hearing held pursuant toclauseparagraph (e) at the 51.8 district's initiative;. 51.9 (c) Parents and guardiansshallmust have an opportunity to 51.10 meet with appropriate district staff in at least one 51.11 conciliation conference, mediation, or other method of 51.12 alternative dispute resolution that the parties agree to, if 51.13 they object to any proposal of which they are notified pursuant 51.14 toclauseparagraph (a). The conciliation process or other form 51.15 of alternative dispute resolutionshallmust not be used to deny 51.16 or delay a parent or guardian's right to a due process hearing. 51.17 If the parent or guardian refuses efforts by the district to 51.18 conciliate the dispute with theschooldistrict, the requirement 51.19 of an opportunity for conciliation or other alternative dispute 51.20 resolutionshallmust be deemed to be satisfied. 51.21 Notwithstanding other law, in any proceeding following a 51.22 conciliation conference, theschooldistrict must not offer a 51.23 conciliation conference memorandum into evidence, except for any 51.24 portions that describe the district's final proposed offer of 51.25 service. Otherwise, with respect to forms of dispute 51.26 resolution, mediation, or conciliation, Minnesota Rule of 51.27 Evidence 408 applies. The departmentof children, families, and51.28learningmay reimburse the districts or directly pay the costs 51.29 of lay advocates, not to exceed $150 per dispute, used in 51.30 conjunction with alternative dispute resolution. 51.31 (d) The commissionershallmust establish a mediation 51.32 process to assist parents,schooldistricts, or other parties to 51.33 resolve disputes arising out of the identification, assessment, 51.34 or educational placement of children with a disability. The 51.35 mediation process must be offered as an informal alternative to 51.36 the due process hearing provided underclauseparagraph (e), but 52.1 must not be used to deny or postpone the opportunity of a parent 52.2 or guardian to obtain a due process hearing. 52.3 (e) Parents, guardians, and the districtshallmust have an 52.4 opportunity to obtain an impartial due process hearing initiated 52.5 and conducted by and in theschooldistrict responsible for 52.6 assuring that an appropriate program is provided in accordance 52.7 with state board rules, if the parent or guardian continues to 52.8 object to: 52.9 (1) a proposed formal educational assessment or proposed 52.10 denial of a formal educational assessment of their child; 52.11 (2) the proposed placement of their child in, or transfer 52.12 of their child to a special education program; 52.13 (3) the proposed denial of placement of their child in a 52.14 special education program or the transfer of their child from a 52.15 special education program; 52.16 (4) the proposed provision or addition of special education 52.17 services for their child; or 52.18 (5) the proposed denial or removal of special education 52.19 services for their child. 52.20 Within five business days after the request for a hearing, 52.21 or as directed by the hearing officer, the objecting partyshall52.22 must provide the other party with a brief written statement of 52.23 particulars of the objection, the reasons for the objection, and 52.24 the specific remedies sought. The other party shall provide the 52.25 objecting party with a written response to the statement of 52.26 objections within five business days of receipt of the statement. 52.27 The hearingshallmust take place before an impartial 52.28 hearing officer mutually agreed to by the school board and the 52.29 parent or guardian. Within four business days of the receipt of 52.30 the request for the hearing, if the parties have not agreed on 52.31 the hearing officer, theschoolboardshallmust request the 52.32 commissioner to appoint a hearing officer. Theschoolboard 52.33shallmust include with the request the name of the person 52.34 requesting the hearing, the name of the student, the attorneys 52.35 involved, if any, and the date the hearing request was 52.36 received. The hearing officershallmust not be aschoolboard 53.1 member or employee of theschooldistrict where the child 53.2 resides or of the child'sschooldistrict of residence, an 53.3 employee of any other public agency involved in the education or 53.4 care of the child, or any person with a personal or professional 53.5 interestwhichthat would conflict with the person's objectivity 53.6 at the hearing. A person who otherwise qualifies as a hearing 53.7 officer is not an employee of the district solely because the 53.8 person is paid by the district to serve as a hearing officer. 53.9 If the hearing officer requests an independent educational 53.10 assessment of a child, the cost of the assessmentshallmust be 53.11 at district expense. The proceedingsshallmust be recorded and 53.12 preserved, at the expense of the school district, pending 53.13 ultimate disposition of the action. 53.14 (f) The decision of the hearing officer pursuant toclause53.15 paragraph (e) shall be rendered not more than 45 calendar days 53.16 from the date of the receipt of the request for the hearing, 53.17 except that hearing officers are encouraged to accelerate the 53.18 timeline to 30 days for children birth through two whose needs 53.19 change rapidly and require quick resolution of complaints. A 53.20 hearing officer may not grant specific extensions of time beyond 53.21 the 45-day period unless requested by either party for good 53.22 cause shown on the record. The decision of the hearing 53.23 officershall beis binding on all parties unless appealed to 53.24 the commissioner by the parent; guardian;schoolboard of the 53.25 district where the child resides pursuant toclause53.26 paragraph (g); and also in the case of children birth through 53.27 two, by the county board. 53.28 The local decisionshallmust: 53.29 (1) be in writing; 53.30 (2) state the controlling facts upon which the decision is 53.31 made in sufficient detail to apprise the parties and the hearing 53.32 review officer of the basis and reason for the decision; and 53.33 (3) be based on the standardsset forthin subdivision 3a 53.34 and the rules of the state board. 53.35 (g) Any local decision issued pursuant toclauses53.36 paragraphs (e) and (f) may be appealed to the commissioner 54.1 within 30 calendar days of receipt of that written decision, by 54.2 the parent, guardian, or theschoolboard of the district 54.3 responsible for assuring that an appropriate program is provided 54.4 in accordance with state board rules. The appealing partyshall54.5 must note the specific parts of the hearing decision being 54.6 appealed. 54.7 If the decision is appealed, a written transcript of the 54.8 hearingshallmust be made by theschooldistrict and provided 54.9 by the district to the parties involved and the hearing review 54.10 officer within five calendar days of the filing of the appeal. 54.11 The hearing review officershallmust conduct an appellate 54.12 review and issue a final independent decision based on an 54.13 impartial review of the local decision and the entire record 54.14 within 30 calendar days after the filing of the appeal. 54.15 However, the hearing review officershallmust seek additional 54.16 evidence if necessary and may afford the parties an opportunity 54.17 for written or oral argument; provided. Any hearing held to 54.18 seek additional evidenceshallmust be an impartial due process 54.19 hearing butshall beis deemed not to be a contested case 54.20 hearing for purposes of chapter 14. The hearing review officer 54.21 may grant specific extensions of time beyond the 30-day period 54.22 at the request of any party for good cause shown on the record. 54.23 The final decisionshallmust: 54.24 (1) be in writing; 54.25 (2) include findings and conclusions; and 54.26 (3) be based upon the standardsset forthin subdivision 3a 54.27 and in the rules of the state board. 54.28 (h) The decision of the hearing review officershall beis 54.29 final unless appealed by the parent or guardian orschoolboard 54.30 to the Minnesota court of appeals or federal district court as 54.31 provided by federal law. State judicial reviewshallmust be in 54.32 accordance with chapter 14. 54.33 (i) The commissionerof children, families, and learning54.34shallmust select an individual who has the qualifications 54.35 enumerated in this paragraph to serve as the hearing review 54.36 officer: 55.1 (1) the individual must be knowledgeable and impartial; 55.2 (2) the individual must not have a personal interest in or 55.3 specific involvement with the student who is a party to the 55.4 hearing; 55.5 (3) the individual must not have been employed as an 55.6 administrator by the district that is a party to the hearing; 55.7 (4) the individual must not have been involved in the 55.8 selection of the administrators of the district that is a party 55.9 to the hearing; 55.10 (5) the individual must not have a personal, economic, or 55.11 professional interest in the outcome of the hearing other than 55.12 the proper administration of the federal and state laws, rules, 55.13 and policies; 55.14 (6) the individual must not have substantial involvement in 55.15 the development of a state or local policy or procedures that 55.16 are challenged in the appeal; 55.17 (7) the individual is not a current employee or board 55.18 member of a Minnesota public school district, education 55.19 district, intermediate unit or regional education agency, the 55.20 departmentof children, families, and learning, and the state 55.21 board of education; and 55.22 (8) the individual is not a current employee or board 55.23 member of a disability advocacy organization or group. 55.24 (j) In all appeals, the parent or guardian of the pupil 55.25 with a disability or the district that is a party to the hearing 55.26 may challenge the impartiality or competence of the proposed 55.27 hearing review officer by applying to the hearing review officer. 55.28 (k) Pending the completion of proceedings pursuant to this 55.29 subdivision, unless the district and the parent or guardian of 55.30 the child agree otherwise, the childshallmust remain in the 55.31 child's current educational placement andshallmust not be 55.32 denied initial admission to school. 55.33 (l) The child'sschooldistrict of residence, a resident 55.34 district, and providing districtshallmust receive notice of 55.35 and may be a party to any hearings or appeals under this 55.36 subdivision. 56.1 (m) Aschooldistrict is not liable for harmless technical 56.2 violations of this subdivision or rules implementing this 56.3 subdivision if the school district can demonstrate on a 56.4 case-by-case basis that the violations did not harm the 56.5 student's educational progress or the parent or guardian's right 56.6 to notice, participation, or due process. 56.7 (n) Within ten calendar days after appointment, the hearing 56.8 officershallmust schedule and hold a prehearing conference. 56.9 At that conference, or later, the hearing officer may take any 56.10 appropriate actionthata courtmightmay take under Rule 16 of 56.11 Minnesota Rules of Civil Procedure including, but not limited 56.12 to, scheduling, jurisdiction, and listing witnesses including 56.13 expert witnesses. 56.14 (o) A hearing officer or hearing review officer appointed 56.15 under this subdivisionshall beis deemed to be an employee of 56.16 the state under section 3.732 for the purposes of section 3.736 56.17 only. 56.18 (p) In order to be eligible for selection, hearing officers 56.19 and hearing review officersshallmust participate in training 56.20 and follow procedures as designated by the commissioner. 56.21 (q) The hearing officer may admit all evidencewhichthat 56.22 possesses probative value, including hearsay, if it is the type 56.23 of evidence on which reasonable, prudent persons are accustomed 56.24 to rely in the conduct of their serious affairs. The hearing 56.25 officershallmust give effect to the rules of privilege 56.26 recognized by law. Evidencewhichthat is incompetent, 56.27 irrelevant, immaterial, or unduly repetitious shall be excluded. 56.28 Sec. 28. Minnesota Statutes 1996, section 120.17, 56.29 subdivision 3d, is amended to read: 56.30 Subd. 3d. [INTERAGENCY SERVICES.] If at the time of 56.31 initial referral for an educational assessment, or a 56.32 reassessment, theschooldistrict determines that a child with 56.33 disabilities who is age 3 through 21 may be eligible for 56.34 interagency services, the district may request that the county 56.35 of residence provide a representative to the initial assessment 56.36 or reassessment team meeting or the first individual education 57.1 plan team meeting following the assessment or reassessment. The 57.2 district may request to have a county representative attend 57.3 other individual education plan team meetings when it is 57.4 necessary to facilitate coordination between district and county 57.5 provided services. Upon request from aschooldistrict, the 57.6 resident county shall provide a representative to assist the 57.7 individual education plan team in determining the child's 57.8 eligibility for existing health, mental health, or other support 57.9 services administered or provided by the county. The individual 57.10 education plan team and the county representativeshallmust 57.11 develop an interagency plan of care for an eligible child and 57.12 the child's family to coordinate services required under the 57.13 child's individual education plan with county services. The 57.14 interagency plan of careshallmust include appropriate family 57.15 information with the consent of the family, a description of how 57.16 services will be coordinated between the district and county, a 57.17 description of service coordinator responsibilities and 57.18 services, and a description of activities for obtaining 57.19 third-party payment for eligible services, including medical 57.20 assistance payments. 57.21 Sec. 29. Minnesota Statutes 1996, section 120.17, 57.22 subdivision 4, is amended to read: 57.23 Subd. 4. [SPECIAL INSTRUCTIONS FOR NONRESIDENT CHILDREN.] 57.24 When a school district provides instruction and services outside 57.25 the district of residence, board and lodging, and any tuition to 57.26 be paid, shall be paid by the district of residence. The 57.27 tuition rate to be charged for any child with a disabilityshall57.28 must be the actual cost of providing special instruction and 57.29 services to the child including a proportionate amount for 57.30 capital outlay and debt service but not including any amount for 57.31 transportation, minus the amount of special aid for children 57.32 with a disability received on behalf of that child. If the 57.33 boards involved do not agree upon the tuition rate, either board 57.34 may apply to the commissioner to fix the rate. The commissioner 57.35shallmust then set a date for a hearing, giving each board at 57.36 least ten days' notice, and after the hearing the 58.1 commissionershallmust make an order fixing the tuition rate, 58.2 whichshall beis binding on both school districts. 58.3 When a district provides instruction and services in a day 58.4 program outside the district of residence, the district of 58.5 residenceshall beis responsible for providing transportation. 58.6 When a district provides instruction and services requiring 58.7 board and lodging or placement in a residential program outside 58.8 the district of residence, the nonresident district in which the 58.9 child is placedshall beis responsible for providing 58.10 transportation. Transportation costs shall be paid by the 58.11 district responsible for providing transportation and the state 58.12 shall pay transportation aid to that district. 58.13 For the purposes of this section, any school district may 58.14 enter into an agreement, upon mutually agreed upon terms and 58.15 conditionswhich are mutually agreed upon, to provide special 58.16 instruction and services for children with a disability. In 58.17 that event, one of the participating units may employ and 58.18 contract with necessary qualified personnel to offer services in 58.19 the several districts. Each participating unitshallmust 58.20 reimburse the employing unit a proportionate amount of the 58.21 actual cost of providing the special instruction and services, 58.22 less the amount of state special education aid, which shall be 58.23 claimed in full by the employing district. 58.24 Sec. 30. Minnesota Statutes 1996, section 120.17, 58.25 subdivision 4a, is amended to read: 58.26 Subd. 4a. [ATTENDANCE IN ANOTHER DISTRICT.] No resident of 58.27 a district who is eligible for special instruction and services 58.28 pursuant to this sectionshallmay be denied provision of this 58.29 instruction and service because of attending a public school in 58.30 anotherschooldistrict pursuant to section 123.39, subdivision 58.31 5, if the attendance is not subject to section 120.075, 58.32 120.0751, or 120.0752. If the pupil attends a public school 58.33 located in a contiguous district and the district of attendance 58.34 does not provide special instruction and services, the district 58.35 of residenceshallmust provide necessary transportation for the 58.36 pupil between the boundary of the district of residence and the 59.1 educational facility where special instruction and services are 59.2 provided within the district of residence. The district of 59.3 residence may provide necessary transportation for the pupil 59.4 between its boundary and the school attended in the contiguous 59.5 district, butshallmust not pay the cost of transportation 59.6 provided outside the boundary of the district of residence. 59.7 Sec. 31. Minnesota Statutes 1996, section 120.17, 59.8 subdivision 5, is amended to read: 59.9 Subd. 5. [SCHOOL OF PARENTS' CHOICE.] Nothing in this 59.10 chaptershallmust be construed as preventing parents of a child 59.11 with a disability from sendingsuchthe child to a school of 59.12 their choice, if they so elect, subject to admission standards 59.13 and policies adopted according to chapter 128A, and all other 59.14 provisions of chapters 120 to 129. 59.15 Sec. 32. Minnesota Statutes 1996, section 120.17, 59.16 subdivision 5a, is amended to read: 59.17 Subd. 5a. [SUMMER PROGRAMS.] A district may provide summer 59.18 programs for children with a disability living within the 59.19 district and nonresident children temporarily placed in the 59.20 district pursuant to subdivision 6 or 7. Prior to March 31 or 59.21 30 days after the child with a disability is placed in the 59.22 district, whichever is later, the providing district shall give 59.23 notice to the district of residence of any nonresident children 59.24 temporarily placed in the district pursuant to subdivision 6 or 59.25 7, of its intention to provide these programs. Notwithstanding 59.26 any contrary provisions in subdivisions 6 and 7, theschool59.27 district providing the special instruction and servicesshall59.28 must apply for special education aid for the summer program. 59.29 The unreimbursed actual cost of providing the program for 59.30 nonresident children with a disability, including the cost of 59.31 board and lodging, may be billed to the district of the child's 59.32 residence andshallmust be paid by the resident district. 59.33 Transportation costsshallmust be paid by the district 59.34 responsible for providing transportation pursuant to subdivision 59.35 6 or 7 and transportation aidshallmust be paid to that 59.36 district. 60.1 Sec. 33. Minnesota Statutes 1996, section 120.17, 60.2 subdivision 6, is amended to read: 60.3 Subd. 6. [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 60.4 The responsibility for special instruction and services for a 60.5 child with a disability temporarily placed in another district 60.6 for care and treatment shall be determined in the following 60.7 manner: 60.8 (a) Theschooldistrict of residence of a child shall be 60.9 the district in which the child's parent resides, if living, or 60.10 the child's guardian, or the district designated by the 60.11 commissionerof children, families, and learningif neither 60.12 parent nor guardian is living within the state. 60.13 (b) When a child is temporarily placed for care and 60.14 treatment in a day program located in another district and the 60.15 child continues to live within the district of residence during 60.16 the care and treatment, the district of residence is responsible 60.17 for providing transportation and an appropriate educational 60.18 program for the child. The district may provide the educational 60.19 program at a school within the district of residence, at the 60.20 child's residence, or in the district in which the day treatment 60.21 center is located by paying tuition to that district. 60.22 (c) When a child is temporarily placed in a residential 60.23 program for care and treatment, the nonresident district in 60.24 which the child is placed is responsible for providing an 60.25 appropriate educational program for the child and necessary 60.26 transportation while the child is attending the educational 60.27 program; andshallmust bill the district of the child's 60.28 residence for the actual cost of providing the program, as 60.29 outlined in subdivision 4, except that. However, the board, 60.30 lodging, and treatment costs incurred in behalf of a child with 60.31 a disability placed outside of the school district of residence 60.32 by the commissioner of human services or the commissioner of 60.33 corrections or their agents, for reasons other thanfor making60.34provisionproviding for the child's special educational 60.35 needsshallmust not become the responsibility of either the 60.36 district providing the instruction or the district of the 61.1 child's residence. 61.2 (d) The district of residence shall pay tuition and other 61.3 program costs, not including transportation costs, to the 61.4 district providing the instruction and services. The district 61.5 of residence may claim general education aid for the child as 61.6 provided by law. Transportation costsshallmust be paid by the 61.7 district responsible for providing the transportation and the 61.8 stateshallmust pay transportation aid to that district. 61.9 Sec. 34. Minnesota Statutes 1996, section 120.17, 61.10 subdivision 7, is amended to read: 61.11 Subd. 7. [PLACEMENT IN STATE INSTITUTION; 61.12 RESPONSIBILITY.] (a) Responsibility for special instruction and 61.13 services for a child with a disability placed in a state 61.14 institution on a temporary basisshallmust be determined in the 61.15 following manner: 61.16(a)(1) the legal residence ofsuchthe childshall be61.17 is theschooldistrict in which the child's parent resides, if 61.18 living, or the child's guardian.; and 61.19(b)(2) when the educational needs ofsuchthe child can be 61.20 met through the institutional program, the costs forsuchthe 61.21 instructionshallmust be paid by the department to which the 61.22 institution is assigned. 61.23(c)(b) When it is determined thatsuchthe child can 61.24 benefit from public school enrollment, provision forsuchthe 61.25 instruction shall be made in the following manner: 61.26 (1) determination of eligibility for special instruction 61.27 and servicesshallmust be made by the commissionerof children,61.28families, and learningand the commissioner of the department 61.29 responsible for the institution; 61.30 (2) theschooldistrict where the institution is located 61.31shall beis responsible for providing transportation and an 61.32 appropriate educational program for the child andshallmust 61.33 make a tuition charge to the child's district of residence for 61.34 the actual cost of providing the program; and 61.35 (3) the district of the child's residence shall pay the 61.36 tuition and other program costs excluding transportation costs 62.1 and may claim general education aid for the child. 62.2 Transportation costsshallmust be paid by the district where 62.3 the institution is located and the stateshallmust pay 62.4 transportation aid to that district. 62.5 Sec. 35. Minnesota Statutes 1996, section 120.17, 62.6 subdivision 7a, is amended to read: 62.7 Subd. 7a. [ATTENDANCE AT SCHOOL FOR THE DISABLED.] 62.8 Responsibility for special instruction and services for a 62.9 visually disabled or hearing impaired child attending the 62.10 Minnesota state academy for the deaf or the Minnesota state 62.11 academy for the blindshallmust be determined in the following 62.12 manner: 62.13 (a) The legal residence of the childshall beis theschool62.14 district in which the child's parent or guardian resides. 62.15 (b) When it is determined pursuant to section 128A.05, 62.16 subdivision 1 or 2, that the child is entitled to attend either 62.17 school, the state boardshallmust provide the appropriate 62.18 educational program for the child. The state boardshallmust 62.19 make a tuition charge to the child's district of residence for 62.20 the cost of providing the program. The amount of tuition 62.21 chargedshallmust not exceed the basic revenue of the district 62.22 for that child, for the amount of time the child is in the 62.23 program. For purposes of this subdivision, "basic revenue" has 62.24 the meaning given it in section 124A.22, subdivision 2. The 62.25 district of the child's residenceshallmust pay the tuition and 62.26 may claim general education aid for the child. Tuition received 62.27 by the state board, except for tuition received underclause62.28 paragraph (c),shallmust be deposited in the state treasury as 62.29 provided inclauseparagraph (g). 62.30 (c) In addition to the tuition charge allowed inclause62.31 paragraph (b), the academies may charge the child's district of 62.32 residence for the academy's unreimbursed cost of providing an 62.33 instructional aide assigned to that child, if that aide is 62.34 required by the child's individual education plan. Tuition 62.35 received under thisclauseparagraph must be used by the 62.36 academies to provide the required service. 63.1 (d) When it is determined that the child can benefit from 63.2 public school enrollment but that the child should also remain 63.3 in attendance at the applicable school, theschooldistrict 63.4 where the institution is locatedshallmust provide an 63.5 appropriate educational program for the child andshallmust 63.6 make a tuition charge to the state board for the actual cost of 63.7 providing the program, less any amount of aid received pursuant 63.8 to section 124.32. The state boardshallmust pay the tuition 63.9 and other program costs including the unreimbursed 63.10 transportation costs. Aids for children with a disabilityshall63.11 must be paid to the district providing the special instruction 63.12 and services. Special transportationshallmust be provided by 63.13 the district providing the educational program and the 63.14 stateshallmust reimbursesuchthat district within the limits 63.15 provided by law. 63.16 (e) Notwithstanding the provisions ofclausesparagraphs (b) 63.17 and (d), the state board may agree to make a tuition charge for 63.18 less than the amount specified inclauseparagraph (b) for 63.19 pupils attending the applicable school who are residents of the 63.20 district where the institution is located and who do not board 63.21 at the institution, if that district agrees to make a tuition 63.22 charge to the state board for less than the amount specified 63.23 inclauseparagraph (d) for providing appropriate educational 63.24 programs to pupils attending the applicable school. 63.25 (f) Notwithstanding the provisions ofclausesparagraphs (b) 63.26 and (d), the state board may agree to supply staff from the 63.27 Minnesota state academy for the deaf and the Minnesota state 63.28 academy for the blind to participate in the programs provided by 63.29 the district where the institutions are located when the 63.30 programs are provided to students in attendance at the state 63.31 schools. 63.32 (g) On May 1 of each year, the state board shall count the 63.33 actual number of Minnesota resident kindergarten and elementary 63.34 students and the actual number of Minnesota resident secondary 63.35 students enrolled and receiving education services at the 63.36 Minnesota state academy for the deaf and the Minnesota state 64.1 academy for the blind. The state board shall deposit in the 64.2 state treasury an amount equal to all tuition received less: 64.3 (1) the total number of students on May 1 less 175, times 64.4 the ratio of the number of kindergarten and elementary students 64.5 to the total number of students on May 1, times the general 64.6 education formula allowance; plus 64.7 (2) the total number of students on May 1 less 175, times 64.8 the ratio of the number of secondary students on May 1 to the 64.9 total number of students on May 1, times 1.3, times the general 64.10 education formula allowance. 64.11 (h) The sum provided by the calculation inclause64.12 paragraph (g),subclausesclauses (1) and (2), must be deposited 64.13 in the state treasury and credited to the general operation 64.14 account of the academy for the deaf and the academy for the 64.15 blind. 64.16 (i) There is annually appropriated to the departmentof64.17children, families, and learningfor the Faribault academies the 64.18 tuition amounts received and credited to the general operation 64.19 account of the academies under this section. A balance in an 64.20 appropriation under this paragraph does not cancel but is 64.21 available in successive fiscal years. 64.22 Sec. 36. Minnesota Statutes 1996, section 120.17, 64.23 subdivision 8a, is amended to read: 64.24 Subd. 8a. [RESIDENCE OF CHILD UNDER SPECIAL CONDITIONS.] 64.25 The legal residence of a child with a disability placed in a 64.26 foster facility for care and treatment when: 64.27 (1) parental rights have been terminated by court order; 64.28 (2) parent or guardian is not living within the state; 64.29 (3) no otherschooldistrict residence can be established; 64.30 or 64.31 (4) parent or guardian having legal custody of the child is 64.32 an inmate of a Minnesota correctional facility or is a resident 64.33 of a halfway house under the supervision of the commissioner of 64.34 corrections; 64.35shall beis theschooldistrict in which the child resides. 64.36 The school board of the district of residenceshallmust provide 65.1 the same educational program forsuchthe child as it provides 65.2 for all resident children with a disability in the district. 65.3 Sec. 37. Minnesota Statutes 1996, section 120.17, 65.4 subdivision 9, is amended to read: 65.5 Subd. 9. [SPECIAL INSTRUCTION.] No resident of a district 65.6 who is eligible for special instruction and services pursuant to 65.7 this sectionshallmay be denied provision of this instruction 65.8 and service on a shared time basis because of attendance at a 65.9 nonpublic school defined in section 123.932, subdivision 3. If 65.10 a resident pupil with a disability attends a nonpublic school 65.11 located within the district of residence, the districtshall65.12 must provide necessary transportation for that pupil within the 65.13 district between the nonpublic school and the educational 65.14 facility where special instruction and services are provided on 65.15 a shared time basis. If a resident pupil with a disability 65.16 attends a nonpublic school located in another district and if no 65.17 agreement exists pursuant to section 124A.034, subdivision 1 or 65.18 1a, for the provision of special instruction and services on a 65.19 shared time basis to that pupil by the district of attendance 65.20 and where the special instruction and services are provided 65.21 within the district of residence, the district of 65.22 residenceshallmust provide necessary transportation for that 65.23 pupil between the boundary of the district of residence and the 65.24 educational facility. The district of residence may provide 65.25 necessary transportation for that pupil between its boundary and 65.26 the nonpublic school attended, but the nonpublic schoolshall65.27 must pay the cost of transportation provided outside the 65.28 district boundary. 65.29 Sec. 38. Minnesota Statutes 1996, section 120.17, 65.30 subdivision 10, is amended to read: 65.31 Subd. 10. [NONRESIDENT EDUCATION; BILLING.] All tuition 65.32 billing for the education of nonresident children pursuant to 65.33 this sectionshallmust be done on uniform forms prescribed by 65.34 the commissioner. The billing shall contain an itemized 65.35 statement of costswhichthat are being charged to the district 65.36 of residence. One copy of eachsuchbillingshallmust be filed 66.1 with the commissioner. 66.2 Sec. 39. Minnesota Statutes 1996, section 120.17, 66.3 subdivision 16, is amended to read: 66.4 Subd. 16. [COMMUNITY TRANSITION INTERAGENCY COMMITTEE.] A 66.5 district, group of districts, or special education cooperative, 66.6 in cooperation with the county or counties in which the district 66.7 or cooperative is located,shallmust establish a community 66.8 transition interagency committee for youth with disabilities, 66.9 beginning at grade 9 or age equivalent, and their families. 66.10 Members of the committeeshallmust consist of representatives 66.11 from special education;, vocational and regular education;, 66.12 community education;, post-secondary education and training 66.13 institutions;, adults with disabilities who have received 66.14 transition services if such persons are available;, parents of 66.15 youth with disabilities;, local business or industry;, 66.16 rehabilitation services;, county social services;, health 66.17 agencies;, and additional public or private adult service 66.18 providers as appropriate. The committeeshallmust elect a 66.19 chair andshallmust meet regularly. The committeeshallmust: 66.20 (1) identify current services, programs, and funding 66.21 sources provided within the community for secondary and 66.22 post-secondary aged youth with disabilities and their families; 66.23 (2) facilitate the development of multiagency teams to 66.24 address present and future transition needs of individual 66.25 students on their individual education plans; 66.26 (3) develop a community plan to include mission, goals, and 66.27 objectives, and an implementation plan to assure that transition 66.28 needs of individuals with disabilities are met; 66.29 (4) recommend changes or improvements in the community 66.30 system of transition services; 66.31 (5) exchange agency information such as appropriate data, 66.32 effectiveness studies, special projects, exemplary programs, and 66.33 creative funding of programs; and 66.34 (6) following procedures determined by the commissioner, 66.35 prepare a yearly summary assessing the progress of transition 66.36 services in the community including follow-up of individuals 67.1 with disabilities who were provided transition services to 67.2 determine postschool outcomes. The summary must be disseminated 67.3 to all adult services agencies involved in the planning and to 67.4 the commissionerof children, families, and learningby October 67.5 1 of each year. 67.6 Sec. 40. Minnesota Statutes 1996, section 120.17, 67.7 subdivision 18, is amended to read: 67.8 Subd. 18. [AGENCY ACCESS TO NONPUBLIC DATA.] The 67.9 commissioner of administrationshallmust prepare a form and 67.10 disseminate guidelines for state agencies, political 67.11 subdivisions, and other responsible authorities to use to enable 67.12 a responsible authority to allow another responsible authority 67.13 access to data about a child with a disability that is 67.14 classified as not public. The form and guidelines must be 67.15 consistent with section 13.05, subdivision 9, and federal law, 67.16 and are not subject to the rulemaking requirements under chapter 67.17 14. 67.18 Sec. 41. Minnesota Statutes 1996, section 120.17, 67.19 subdivision 19, is amended to read: 67.20 Subd. 19. [PARENT ADVISORY COMMITTEES.] Provisions of 67.21 Minnesota Rules, part 3525.1100, regarding parent advisory 67.22 committeesshallapply to localschoolboards or cooperative 67.23 boards carrying out the provisions of this section. 67.24 Sec. 42. Minnesota Statutes 1996, section 120.1701, 67.25 subdivision 2, is amended to read: 67.26 Subd. 2. [DEFINITIONS.] For the purposes of this section 67.27 the following terms have themeaningmeanings given them. 67.28 (a) "Coordinate" means to provide ready access to a 67.29 community's services and resources to meet child and family 67.30 needs. 67.31 (b) "Core early intervention services" means services that 67.32 are available at no cost to children and families. These 67.33 services include: 67.34 (1) identification and referral; 67.35 (2) screening; 67.36 (3) evaluation; 68.1 (4) assessment; 68.2 (5) service coordination; 68.3 (6) special education and related services provided under 68.4 section 120.17, subdivision 3a, and United States Code, title 68.5 20, section 1401; and 68.6 (7) protection of parent and child rights by means of 68.7 procedural safeguards. 68.8 (c) "County board" means a county board established under 68.9 chapter 375. 68.10 (d) "Early intervention record" means any personally 68.11 identifiable information about a child or the child's family 68.12 that is generated by the early intervention system, and that 68.13 pertains to evaluation and assessment, development of an 68.14 individualized family service plan, and the delivery of early 68.15 intervention services. 68.16 (e) "Early intervention services" means services provided 68.17 in conformity with an individualized family service plan that 68.18 are designed to meet the special developmental needs of a child 68.19 eligible under Code of Federal Regulations, title 34, part 303, 68.20 and the needs of the child's family related to enhancing the 68.21 child's development and that are selected in collaboration with 68.22 the parent. These services include core early intervention 68.23 services and additional early intervention services listed in 68.24 subdivision 4 and services defined in Code of Federal 68.25 Regulations, title 34, section 303, et seq. 68.26 (f) "Early intervention system" means the total effort in 68.27 the state to meet the needs of eligible children and their 68.28 families, including, but not limited to: 68.29 (1) any public agency in the state that receives funds 68.30 under the Individuals with Disabilities Education Act, United 68.31 States Code, title 20, sections 1471 to 1485 (Part H, Public Law 68.32 Number 102-119); 68.33 (2) other state and local agencies administering programs 68.34 involved in the provision of early intervention services, 68.35 including, but not limited to: 68.36 (i) the Maternal and Child Health program under title V of 69.1 the Social Security Act, United States Code, title 42, sections 69.2 701 to 709; 69.3 (ii) the Individuals with Disabilities Education Act, 69.4 United States Code, title 20, sections 1411 to 1420 (Part B); 69.5 (iii) medical assistance under the Social Security Act, 69.6 United States Code, title 42, section 1396 et seq.; 69.7 (iv) the Developmental Disabilities Assistance and Bill of 69.8 Rights Act, United States Code, title 42, sections 6021 to 6030 69.9 (Part B); and 69.10 (v) the Head Start Act, United States Code, title 42, 69.11 sections 9831 to 9852; and 69.12 (3) services provided by private groups or third-party 69.13 payers in conformity with an individualized family service plan. 69.14 (g) "Eligibility for Part H" means eligibility for early 69.15 childhood special education under section 120.03 and Minnesota 69.16 Rules, part 3525.2335, subpart 1, items A and B. 69.17 (h) "Facilitate payment" means helping families access 69.18 necessary public or private assistance that provides payment for 69.19 services required to meet needs identified in a service plan, 69.20 individual education plan (IEP), individual service plan (ISP), 69.21 or individualized family service plan (IFSP), according to time 69.22 frames required by the plan. This may also include activities 69.23 to collect fees for services provided on a sliding fee basis, 69.24 where permitted by state law. 69.25 (i) "Individualized family service plan" or "IFSP" means a 69.26 written plan for providing services to a child and the child's 69.27 family. 69.28 (j) "Interagency child find systems" means activities 69.29 developed on an interagency basis with the involvement of 69.30 interagency early intervention committees and other relevant 69.31 community groups to actively seek out, identify, and refer 69.32 infants and young children with, or at risk of, disabilities, 69.33 and their families. 69.34 (k) "Local primary agency" means the agency designated 69.35 jointly by the school and county board under subdivision 4. 69.36 (l) "Parent" means the biological parent with parental 70.1 rights, adoptive parent, legal guardian, or surrogate parent. 70.2 (m) "Part H state plan" means the annual state plan 70.3 application approved by the federal government under the 70.4 Individuals with Disabilities Education Act, United States Code, 70.5 title 20, section 1471 et seq. (Part H, Public Law Number 70.6 102-119). 70.7 (n) "Pay for" means using federal, state, local, and 70.8 private dollars available for early intervention services. 70.9 (o) "Respite" means short-term, temporary care provided to 70.10 a child with a disability due to the temporary absence or need 70.11 for relief of the family member or members or primary caregiver,70.12 normally providing the care. 70.13 (p) "State lead agency" means the state agency receiving 70.14 federal funds under the Individuals with Disabilities Education 70.15 Act, United States Code, title 20, section 1471 et seq. (Part H, 70.16 Public Law Number 102-119). 70.17 (q) "Surrogate parent" means a person appointed by the 70.18 local education agency to assure that the rights of the child to 70.19 early intervention services are protected. 70.20 Sec. 43. Minnesota Statutes 1997 Supplement, section 70.21 120.1701, subdivision 3, is amended to read: 70.22 Subd. 3. [STATE INTERAGENCY COORDINATING COUNCIL.] An 70.23 interagency coordinating council of at least 17, but not more 70.24 than 25 members is established, in compliance with Public Law 70.25 Number 102-119, section 682. The membersshallmust be 70.26 appointed by the governor. Council membersshallmust elect the 70.27 council chair. The representative of the commissionerof70.28children, families, and learningmay not serve as the chair. 70.29 The councilshallmust be composed of at least five parents, 70.30 including persons of color, of children with disabilities under 70.31 age 12, including at least three parents of a child with a 70.32 disability under age seven, five representatives of public or 70.33 private providers of services for children with disabilities 70.34 under age five, including a special education director, county 70.35 social service director, and a community health services or 70.36 public health nursing administrator, one member of the senate, 71.1 one member of the house of representatives, one representative 71.2 of teacher preparation programs in early childhood-special 71.3 education or other preparation programs in early childhood 71.4 intervention, at least one representative of advocacy 71.5 organizations for children with disabilities under age five, one 71.6 physician who cares for young children with special health care 71.7 needs, one representative each from the commissioners of 71.8 commerce, children, families, and learning, health, human 71.9 services, and economic security, and a representative from 71.10 Indian health services or a tribal council. Section 15.059, 71.11 subdivisions 2 to 5, apply to the council. The councilshall71.12 must meet at least quarterly. 71.13 The councilshallmust address methods of implementing the 71.14 state policy of developing and implementing comprehensive, 71.15 coordinated, multidisciplinary interagency programs of early 71.16 intervention services for children with disabilities and their 71.17 families. 71.18 The duties of the council include recommending policies to 71.19 ensure a comprehensive and coordinated system of all state and 71.20 local agency services for children under age five with 71.21 disabilities and their families. The policies must address how 71.22 to incorporate each agency's services into a unified state and 71.23 local system of multidisciplinary assessment practices, 71.24 individual intervention plans, comprehensive systems to find 71.25 children in need of services, methods to improve public 71.26 awareness, and assistance in determining the role of interagency 71.27 early intervention committees. 71.28Each yearBy June 1, the councilshallmust recommend to 71.29 the governor and the commissioners of children, families, and 71.30 learning, health, human services, commerce, and economic 71.31 security policies for a comprehensive and coordinated system. 71.32 Notwithstanding any other law to the contrary, the state 71.33 interagency coordinating councilshall expireexpires on June 71.34 30, 2001. 71.35 Sec. 44. Minnesota Statutes 1996, section 120.1701, 71.36 subdivision 4, is amended to read: 72.1 Subd. 4. [RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL 72.2 BOARDS.] (a) It is the joint responsibility of county boards and 72.3 school boards to coordinate, provide, and pay for appropriate 72.4 services, and to facilitate payment for services from public and 72.5 private sources. Appropriate services for children eligible 72.6 under section 120.03 must be determined in consultation with 72.7 parents, physicians, and other educational, medical, health, and 72.8 human services providers. The services provided must be in 72.9 conformity with an IFSP for each eligible infant and toddler 72.10 from birth through age two and its family, or an individual 72.11 education plan (IEP) or individual service plan (ISP) for each 72.12 eligible child ages three through four. 72.13 (b) Appropriate services include family education and 72.14 counseling, home visits, occupational and physical therapy, 72.15 speech pathology, audiology, psychological services, special 72.16 instruction, nursing, respite, nutrition, assistive technology, 72.17 transportation and related costs, social work, vision services, 72.18 case management including service coordination under subdivision 72.19 8, medical services for diagnostic and evaluation purposes, 72.20 early identification, and screening, assessment, and health 72.21 services necessary to enable children with disabilities to 72.22 benefit from early intervention services. 72.23 (c) School and county boards shall coordinate early 72.24 intervention services. In the absence of agreements established 72.25 according to subdivision 13, service responsibilities for 72.26 children birth through age two are as follows: 72.27 (1) school boardsare required tomust provide, pay for, 72.28 and facilitate payment for special education and related 72.29 services required under section 120.17, subdivision 2; 72.30 (2) county boardsare required tomust provide, pay for, 72.31 and facilitate payment for noneducational services of social 72.32 work, psychology, transportation and related costs, nursing, 72.33 respite, and nutrition services not required under clause (1). 72.34 (d) School and county boards may develop an interagency 72.35 agreement according to subdivision 13 to establish agency 72.36 responsibility that assuresthatearly intervention services are 73.1 coordinated, provided, paid for, and that payment is facilitated 73.2 from public and private sources. 73.3 (e) County and school boardsshallmust jointly determine 73.4 the primary agency in this cooperative effort and must notify 73.5 the commissioner of the state lead agency of their decision. 73.6 Sec. 45. Minnesota Statutes 1996, section 120.1701, 73.7 subdivision 5, is amended to read: 73.8 Subd. 5. [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) 73.9 A school district, group of districts, or special education 73.10 cooperative, in cooperation with the health and human service 73.11 agencies located in the county or counties in which the district 73.12 or cooperative is located,shallmust establish an interagency 73.13 early intervention committee for children with disabilities 73.14 under age five and their families. Committeesshallmust 73.15 include representatives of local and regional health, education, 73.16 and county human service agencies;, county boards;, school 73.17 boards;, early childhood family education programs;, parents of 73.18 young children with disabilities under age 12;, current service 73.19 providers;, and may also include representatives from other 73.20 private or public agencies. The committeeshallmust elect a 73.21 chair from among its members andshallmust meet at least 73.22 quarterly. 73.23 (b) The committeeshallmust develop and implement 73.24 interagency policies and procedures concerning the following 73.25 ongoing duties: 73.26 (1) develop public awareness systems designed to inform 73.27 potential recipient families of available programs and services; 73.28 (2) implement interagency child find systems designed to 73.29 actively seek out, identify, and refer infants and young 73.30 children with, or at risk of, disabilities and their families; 73.31 (3) establish and evaluate the identification, referral, 73.32 child and family assessment systems, procedural safeguard 73.33 process, and community learning systems to recommend, where 73.34 necessary, alterations and improvements; 73.35 (4) assure the development of individualized family service 73.36 plans for all eligible infants and toddlers with disabilities 74.1 from birth through age two, and their families, and individual 74.2 education plans and individual service plans when necessary to 74.3 appropriately serve children with disabilities, age three and 74.4 older, and their families and recommend assignment of financial 74.5 responsibilities to the appropriate agencies. Agencies are74.6encouraged; 74.7 (5) encourage agencies to develop individual family service 74.8 plans for children with disabilities, age three and older; 74.9(5)(6) implement a process for assuring that services 74.10 involve cooperating agencies at all steps leading to 74.11 individualized programs; 74.12(6)(7) facilitate the development of a transitional plan 74.13 if a service provider is not recommended to continue to provide 74.14 services; 74.15(7)(8) identify the current services and funding being 74.16 provided within the community for children with disabilities 74.17 under age five and their families; 74.18(8)(9) develop a plan for the allocation and expenditure 74.19 of additional state and federal early intervention funds under 74.20 United States Code, title 20, section 1471 et seq. (Part H, 74.21 Public Law Number 102-119) and United States Code, title 20, 74.22 section 631, et seq. (Chapter I, Public Law Number 89-313); and 74.23(9)(10) develop a policy that is consistent with section 74.24 13.05, subdivision 9, and federal law to enable a member of an 74.25 interagency early intervention committee to allow another member 74.26 access to data classified as not public. 74.27 (c) The local committee shall also: 74.28 (1) participate in needs assessments and program planning 74.29 activities conducted by local social service, health and 74.30 education agencies for young children with disabilities and 74.31 their families; 74.32 (2) review and comment on the early intervention section of 74.33 the total special education system for the district, the county 74.34 social service plan, the section or sections of the community 74.35 health services plan that address needs of and service 74.36 activities targeted to children with special health care needs, 75.1 and the section of the maternal and child health special project 75.2 grants that address needs of and service activities targeted to 75.3 children with chronic illness and disabilities; and 75.4 (3) prepare a yearly summary on the progress of the 75.5 community in serving young children with disabilities, and their 75.6 families, including the expenditure of funds, the identification 75.7 of unmet service needs identified on the individual family 75.8 services plan and other individualized plans, and local, state, 75.9 and federal policies impeding the implementation of this section. 75.10 (d) The summary must be organized following a format 75.11 prescribed by the commissioner of the state lead agency and must 75.12 be submitted to each of the local agencies and to the state 75.13 interagency coordinating council by October 1 of each year. 75.14 The departments of children, families, and learning, 75.15 health, and human services must provide assistance to the local 75.16 agencies in developing cooperative plans for providing services. 75.17 Sec. 46. Minnesota Statutes 1996, section 120.1701, 75.18 subdivision 6, is amended to read: 75.19 Subd. 6. [LOCAL PRIMARY AGENCY.] (a) The local primary 75.20 agencyshallmust: 75.21 (1) facilitate the development of annual fund requests that 75.22 identify arrangements with other local and regional agencies 75.23 providing services as part of the state's early childhood 75.24 intervention system and that result in service availability on a 75.25 year-round basis, as necessary; 75.26 (2) administer funds received through the annual fund 75.27 request; 75.28 (3) provide oversight for data collection efforts; 75.29 (4) facilitate completion of interagency early intervention 75.30 committee duties as indicated in subdivision 5; 75.31 (5) request mediation from the state lead agency, if 75.32 necessary; 75.33 (6) request assistance from the state lead agency when 75.34 disputes between agencies cannot be resolved within 20 calendar 75.35 days; and 75.36 (7) receive written requests from parents for matters that 76.1 may be resolved through due process hearings. 76.2 (b) When the local primary agency is not an education 76.3 agency, resources distributed under the early intervention fund 76.4shallmust be transferred from a local educational agency to a 76.5 noneducation agency using a state provided contract. A local 76.6 primary agency may budget for indirect costs at an amount not to 76.7 exceed five percent of the amount allocated from the early 76.8 intervention fund. 76.9 Sec. 47. Minnesota Statutes 1996, section 120.1701, 76.10 subdivision 7, is amended to read: 76.11 Subd. 7. [INDIVIDUALIZED FAMILY SERVICE PLAN.] (a) A team 76.12 must participate in IFSP meetings to develop theindividualized76.13family service planIFSP. The team shall include: 76.14 (1) a parent or parents of the child; 76.15 (2) other family members, as requested by the parent, if 76.16 feasible to do so; 76.17 (3) an advocate or person outside of the family, if the 76.18 parent requests that the person participate; 76.19 (4) the service coordinator who has been working with the 76.20 family since the initial referral, or who has been designated by 76.21 the public agency to be responsible for implementation of the 76.22 IFSP; and 76.23 (5) a person or persons involved in conducting evaluations 76.24 and assessments. 76.25 (b) The IFSP must include: 76.26 (1) information about the child's developmental status; 76.27 (2) family information, with the consent of the family; 76.28 (3) major outcomes expected to be achieved by the child and 76.29 the family,that include the criteria, procedures, and 76.30 timelines; 76.31 (4) specific early intervention services necessary to meet 76.32 the unique needs of the child and the family to achieve the 76.33 outcomes; 76.34 (5) payment arrangements, if any; 76.35 (6) medical and other services that the child needs, but 76.36 that are not required under the Individual with Disabilities 77.1 Education Act, United States Code, title 20, section 1471 et 77.2 seq. (Part H, Public Law Number 102-119) including funding 77.3 sources to be used in paying for those services and the steps 77.4 that will be taken to secure those services through public or 77.5 private sources; 77.6 (7) dates and duration of early intervention services; 77.7 (8) name of the service coordinator; 77.8 (9) steps to be taken to support a child's transition from 77.9 early intervention services to other appropriate services; and 77.10 (10) signature of the parent and authorized signatures of 77.11 the agencies responsible for providing, paying for, or 77.12 facilitating payment, or any combination of these, for early 77.13 intervention services. 77.14 Sec. 48. Minnesota Statutes 1996, section 120.1701, 77.15 subdivision 8, is amended to read: 77.16 Subd. 8. [SERVICE COORDINATION.] (a) The team developing 77.17 theindividualized family service planIFSP under subdivision 7 77.18shallmust select a service coordinator to carry out service 77.19 coordination activities on an interagency basis. Service 77.20 coordination must actively promote a family's capacity and 77.21 competency to identify, obtain, coordinate, monitor, and 77.22 evaluate resources and services to meet the family's needs. 77.23 Service coordination activities include: 77.24 (1) coordinating the performance of evaluations and 77.25 assessments; 77.26 (2) facilitating and participating in the development, 77.27 review, and evaluation of individualized family service plans; 77.28 (3) assisting families in identifying available service 77.29 providers; 77.30 (4) coordinating and monitoring the delivery of available 77.31 services; 77.32 (5) informing families of the availability of advocacy 77.33 services; 77.34 (6) coordinating with medical, health, and other service 77.35 providers; 77.36 (7) facilitating the development of a transition plan at 78.1 least six monthsprior tobefore the time the child is no longer 78.2 eligible for early intervention services, if appropriate; 78.3 (8) managing the early intervention record and submitting 78.4 additional information to the local primary agency at the time 78.5 of periodic review and annual evaluations; and 78.6 (9) notifying a local primary agency when disputes between 78.7 agencies impact service delivery required by anindividualized78.8family service planIFSP. 78.9 (b) A service coordinator must be knowledgeable about 78.10 children and families receiving services under this section, 78.11 requirements of state and federal law, and services available in 78.12 the interagency early childhood intervention system. 78.13 Sec. 49. Minnesota Statutes 1996, section 120.1701, 78.14 subdivision 8a, is amended to read: 78.15 Subd. 8a. [EARLY INTERVENTION RESPITE.] The provision of 78.16 respite services for an eligible child and familyshallmust be 78.17 determined in the context of the IFSP development based on the 78.18 individual needs of the child and family and with consideration 78.19 given to the following criteria: 78.20 (1) severity of the child's disability and needs; 78.21 (2) potential risk of out-of-home placement for the child 78.22 if respite services are not provided; 78.23 (3) parental lack of access to informal support systems, 78.24 including, but not limited to, extended family, supportive 78.25 friends, and community supports; 78.26 (4) presence of factors known to increase family stress, 78.27 including, but not limited to, family size and presence of 78.28 another child or family member with a disability; 78.29 (5) the availability of other public services provided to 78.30 the familywhichthat assist the parent or primary caretaker in 78.31 obtaining relief from caretaking responsibilities; and 78.32 (6) the perceived and expressed level of need for respite 78.33 services by the parent. 78.34 Counties are encouraged to make a variety of respite 78.35 service models available, which may include in or out-of-home 78.36 respite, family reimbursement programs, and parent-to-parent 79.1 respite projects. 79.2 Sec. 50. Minnesota Statutes 1996, section 120.1701, 79.3 subdivision 9, is amended to read: 79.4 Subd. 9. [EARLY INTERVENTION FLOW-THROUGH DOLLARS.] (a) 79.5 The state lead agencyshallmust administer the early 79.6 intervention accountwhichthat consists of federal 79.7 allocations. The Part H state planshallmust state the amount 79.8 of federal resources in the early intervention account available 79.9 for use by local agencies. The state lead agencyshallmust 79.10 distribute the funds to the local primary agency based on a 79.11 December 1 count of the prior year of Part H eligible children 79.12 for the following purposes: 79.13 (1) as provided in Code of Federal Regulations, title 34, 79.14 part 303.425, to arrange for payment for early intervention 79.15 services not elsewhere available, or to pay for services during 79.16 the pendency of a conflict procedure, including mediation, 79.17 complaints, due process hearings, and interagency disputes; and 79.18 (2) to support interagency child find system activities. 79.19 (b) The priority purpose for this fund is paragraph (a), 79.20 clause (1). The local primary agencyshallmust reallocate 79.21 resources from the early intervention fund as necessary in order 79.22 to meet this priority. 79.23 (c) Nothing in this subdivisionshall limitlimits the 79.24 state lead agency's authority to allocate discretionary federal 79.25 funds for any purpose consistent with the Individuals with 79.26 Disabilities Education Act, United States Code, title 20, 79.27 sections 1471 to 1485 (Part H, Public Law Number 102-119) and 79.28 regulations adopted under United States Code, title 20, sections 79.29 1471 to 1485. 79.30 (d) Each county board must continue to spend for early 79.31 intervention services under subdivision 2, paragraph (e), an 79.32 amount equal to the total county expenditure during the period 79.33 from January 1, 1993, to December 31, 1993, for these same 79.34 services. The commissioner of human services, in consultation 79.35 with the commissioner of health and the association of Minnesota 79.36 counties,shallmust establish a process for determining base 80.1 year 1993 expenditures. 80.2 (e) County boards that have submitted base year 1993 80.3 expenditures as required under paragraph (d) are not required to 80.4 pay any increased cost over the base year 1993 for early 80.5 intervention services resulting from implementing the early 80.6 intervention system. Increased costs to county boards may be 80.7 paid for with early intervention flow-through dollars. 80.8 (f) School boards are not required to pay for services 80.9 defined in subdivision 4, paragraph (c), clause (2). 80.10 Sec. 51. Minnesota Statutes 1996, section 120.1701, 80.11 subdivision 10, is amended to read: 80.12 Subd. 10. [PAYMENT FOR SERVICES.] Core early intervention 80.13 servicesshallmust be provided at public expense with no cost 80.14 to parents. Parentsshallmust be requested to assist in the 80.15 cost of additional early intervention services by using 80.16 third-party payment sources and applying for available 80.17 resources. Payment structures permitted under state lawshall80.18 must be used to pay for additional early intervention services. 80.19 Parental financial responsibilityshallmust be clearly defined 80.20 in theindividualized family service planIFSP. A parent's 80.21 inability to payshallmust not prohibit a child from receiving 80.22 needed early intervention services. 80.23 Sec. 52. Minnesota Statutes 1996, section 120.1701, 80.24 subdivision 11, is amended to read: 80.25 Subd. 11. [PAYOR OF LAST RESORT.] (a) For fiscal years 80.26 1995 and 1996, the state lead agencyshallmust establish a 80.27 reserve account from federal sources to pay for services in 80.28 dispute or to pay for early intervention services when local 80.29 agencies have exhausted all other public and private funds 80.30 available for Part H eligible children. 80.31 (b) The lead agencyshallmust report to the legislature by 80.32 January 1, 1996, regarding county board expenditures for early 80.33 intervention services and the continuing need and funding of the 80.34 reserve account. 80.35 Sec. 53. Minnesota Statutes 1996, section 120.1701, 80.36 subdivision 12, is amended to read: 81.1 Subd. 12. [MAINTENANCE OF EFFORT.] A county human services 81.2 agency or county boardshallmust continue to provide services 81.3 set forth in their county social service agency plan. The 81.4 county human services agency or county boardshallmust serve 81.5 children with disabilities under age five,and their families, 81.6 or as specified in theindividualized family service planIFSP 81.7 for children with disabilities, birth through age two, or the 81.8 individual service plan of each child. Special instruction and 81.9 related services for which a child with a disability is eligible 81.10 under this section are the responsibility of the local school 81.11 board. It is the joint responsibility of county boards and 81.12 school boards to coordinate, provide, and pay for all 81.13 appropriate services required in subdivision 11b and to 81.14 facilitate payment for services from public and private sources. 81.15 Sec. 54. Minnesota Statutes 1996, section 120.1701, 81.16 subdivision 15, is amended to read: 81.17 Subd. 15. [BENEFITS COORDINATION.] The department of 81.18 healthshallmust provide technical assistance in a timely 81.19 manner to service coordinators, parents of children with 81.20 disabilities, and agencies in situations requiring the 81.21 coordination of health insurance benefits, or the identification 81.22 of third-party payor responsibilities to provide necessary 81.23 health benefits. 81.24 Sec. 55. Minnesota Statutes 1996, section 120.1701, 81.25 subdivision 17, is amended to read: 81.26 Subd. 17. [MEDIATION PROCEDURE.] The commissioner of the 81.27 state lead agencyshallmust use federal funds to provide 81.28 mediation for the activities in paragraphs (a) and (b). 81.29 (a) A parent may resolve a dispute regarding issues in 81.30 subdivision 16, paragraph (b), clause (5), through mediation. If 81.31 the parent chooses mediation, all public agencies involved in 81.32 the disputeshallmust participate in the mediation process. 81.33 The parent and the public agencies must complete the mediation 81.34 process within 20 calendar days of the date the commissioner 81.35 receives a parent's written request for mediation. The 81.36 mediation process may not be used to delay a parent's right to a 82.1 due process hearing. The resolution of the mediation is not 82.2 binding on any party. 82.3 (b) The local primary agency may request mediation on 82.4 behalf of involved agencies when there are disputes between 82.5 agencies regarding responsibilities to coordinate, provide, pay 82.6 for, or facilitate payment for early intervention services. 82.7 Sec. 56. Minnesota Statutes 1996, section 120.1701, 82.8 subdivision 19, is amended to read: 82.9 Subd. 19. [INTERAGENCY DISPUTE PROCEDURE.] (a) A dispute 82.10 between a school board and a county board that is responsible 82.11 for implementing the provisions of subdivision 4 regarding early 82.12 identification, child and family assessment, service 82.13 coordination, and IFSP development and implementationshallmust 82.14 be resolved according to this subdivision when the dispute 82.15 involves services provided to children and families eligible 82.16 under the Individuals with Disabilities Education Act, United 82.17 States Code, title 20, section 1471 et seq. (Part H, Public Law 82.18 Number 102-119). 82.19 (b) A dispute occurs when the school board and county board 82.20 are unable to agree as to who is responsible to coordinate, 82.21 provide, pay for, or facilitate payment for services from public 82.22 and private sources. 82.23 (c) Written and signed disputesshallmust be filed with 82.24 the local primary agency. 82.25 (d) The local primary agencyshall have attemptedmust 82.26 attempt to resolve the matter with the involved school board and 82.27 county board and may request mediation from the commissioner of 82.28 the state lead agency for this purpose. 82.29 (e) When interagency disputes have not been resolved within 82.30 30 calendar days, the local primary agencyshallmust request 82.31 the commissioner of the state lead agency to review the matter 82.32 with the commissioners of health and human services and make a 82.33 decision. The commissionershallmust provide a consistent 82.34 process for reviewing those procedures. The commissioners' 82.35 decision is binding subject to the right of an aggrieved party 82.36 to appeal to the state court of appeals. 83.1 (f) The local primary agencyshallmust ensure that 83.2 eligible children and their families receive early intervention 83.3 services during resolution of a dispute. While a local dispute 83.4 is pending, the local primary agencyshallmust either assign 83.5 financial responsibility to an agency or pay for the service 83.6 from the early intervention account under subdivision 9. If in 83.7 resolving the dispute, it is determined that the assignment of 83.8 financial responsibility was inappropriate, the responsibility 83.9 for payment must be reassigned to the appropriate agency and the 83.10 responsible agencyshallmust make arrangements for reimbursing 83.11 any expenditures incurred by the agency originally assigned 83.12 financial responsibility. 83.13 Sec. 57. Minnesota Statutes 1996, section 120.1701, 83.14 subdivision 20, is amended to read: 83.15 Subd. 20. [DUE PROCESS HEARINGS.] The procedures for due 83.16 process hearings and appealsshallmust be the same as those in 83.17 section 120.17, subdivision 3b. The responsibility for payment 83.18 of costs and conducting due process hearings and appeals shall 83.19 be allocated to the appropriate agency in accordance with 83.20 subdivisions 5, 13, and 16. 83.21 Sec. 58. Minnesota Statutes 1996, section 120.1701, 83.22 subdivision 21, is amended to read: 83.23 Subd. 21. [DATA COLLECTION.] By July 1, 1994, the 83.24 departments of children, families, and learning, health, and 83.25 human servicesshallmust develop a plan to collect data about 83.26 which early intervention services are being provided to children 83.27 and families eligible under the Individuals with Disabilities 83.28 Education Act, United States Code, title 20, section 1471 et 83.29 seq. (Part H, Public Law Number 102-119) and sources of payment 83.30 for those services. 83.31 Sec. 59. Minnesota Statutes 1996, section 120.1701, 83.32 subdivision 22, is amended to read: 83.33 Subd. 22. [STATE INTERAGENCY AGREEMENT.] (a) The 83.34 commissioners of the departments of children, families, and 83.35 learning, health, and human servicesshallmust enter into an 83.36 agreement to implement this section and Part H, Public Law 84.1 Number 102-119, and as required by Code of Federal Regulations, 84.2 title 34, section 303.523, to promote the development and 84.3 implementation of interagency, coordinated, multidisciplinary 84.4 state and local early childhood intervention service systems for 84.5 serving eligible young children with disabilities, birth through 84.6 age two, and their families. The agreement must be reviewed 84.7 annually. 84.8 (b) The state interagency agreementshallmust outline at a 84.9 minimum the conditions, procedures, purposes, and 84.10 responsibilities of the participating state and local agencies 84.11 for the following: 84.12 (1) membership, roles, and responsibilities of a state 84.13 interagency committee for the oversight of priorities and budget 84.14 allocations under Part H, Public Law Number 102-119, and other 84.15 state allocations for this program; 84.16 (2) child find; 84.17 (3) establishment of local interagency agreements; 84.18 (4) review by a state interagency committee of the 84.19 allocation of additional state and federal early intervention 84.20 funds by local agencies; 84.21 (5) fiscal responsibilities of the state and local 84.22 agencies; 84.23 (6) intraagency and interagency dispute resolution; 84.24 (7) payor of last resort; 84.25 (8) maintenance of effort; 84.26 (9) procedural safeguards, including mediation; 84.27 (10) complaint resolution; 84.28 (11) quality assurance; 84.29 (12) data collection; 84.30 (13) an annual summary to the state interagency 84.31 coordinating council regarding conflict resolution activities 84.32 including disputes, due process hearings, and complaints; and 84.33 (14) other components of the state and local early 84.34 intervention system consistent with Public Law Number 102-119. 84.35 Written materials must be developed for parents, IEIC's, and 84.36 local service providers that describe procedures developed under 85.1 this section as required by Code of Federal Regulations, title 85.2 34, section 303. 85.3 Sec. 60. Minnesota Statutes 1996, section 120.172, 85.4 subdivision 2, is amended to read: 85.5 Subd. 2. [STATE PLAN.] The state boardof educationshall 85.6 not adopt any provision in the state plan for special education 85.7whichthat reduces the opportunities for parents and school 85.8 districts to resolve their differences through conciliation. 85.9 Sec. 61. Minnesota Statutes 1996, section 120.173, 85.10 subdivision 1, is amended to read: 85.11 Subdivision 1. [COMMISSIONER APPROVAL.] The commissioner 85.12of children, families, and learningmay approve applications 85.13 fromschooldistricts to provide prevention services as an 85.14 alternative to special education and other compensatory programs 85.15 during three school years. A district with an approved program 85.16 may provide instruction and services in a regular education 85.17 classroom to eligible pupils. Pupils eligible to participate in 85.18 the program are low-performing pupils who, based on documented 85.19 experience, the professional judgment of a classroom teacher, or 85.20 a team of licensed professionals, would eventually qualify for 85.21 special education instruction or related services under section 85.22 120.17 if the intervention services authorized by this section 85.23 were unavailable. Pupils may be provided services during 85.24 extended school days and throughout the entire year. 85.25 Sec. 62. Minnesota Statutes 1996, section 120.173, 85.26 subdivision 3, is amended to read: 85.27 Subd. 3. [EVALUATION.] The applicationshallmust also set 85.28 forth the review and evaluation procedures to be used by the 85.29 district addressing at least the following: 85.30 (1) the number of pupils with and without a disability 85.31 served; 85.32 (2) the impact of the program on the academic progress and 85.33 social adjustment of the pupils; 85.34 (3) the level of satisfaction teachers, parents, and pupils 85.35 have with the program; 85.36 (4) the effect of the program on the number of referrals 86.1 for special education, federal chapter 1, and other programs; 86.2 (5) the amount of time spent by teachers on procedural 86.3 activities; 86.4 (6) the increased amount of time the pupil is in a regular 86.5 education classroom; and 86.6 (7) cost implications. 86.7 Sec. 63. Minnesota Statutes 1996, section 120.173, 86.8 subdivision 4, is amended to read: 86.9 Subd. 4. [REVIEW FOR EXCESS EXPENDITURES.] The 86.10 commissionershallmust review each application to determine 86.11 whether the personnel, equipment, supplies, residential aid, and 86.12 summer school are necessary to meet the district's obligation to 86.13 provide special instruction and services to children with a 86.14 disability according to section 120.17. The commissionershall86.15 may not approve revenue for any expenditures determined to be 86.16 unnecessary. 86.17 Sec. 64. Minnesota Statutes 1996, section 120.173, 86.18 subdivision 6, is amended to read: 86.19 Subd. 6. [PUPIL RIGHTS.] A pupil participating in the 86.20 program must be individually evaluated according to the pupil's 86.21 actual abilities and needs. A pupil who is eligible for 86.22 services under section 120.17 is entitled to procedural 86.23 protections provided under Public Law Number 94-142 in any 86.24 matter that affects the identification, evaluation, placement, 86.25 or change in placement of a pupil. The district must ensure the 86.26 protection of a pupil's civil rights, provide equal educational 86.27 opportunities, and prohibit discrimination. Failure to comply 86.28 with this subdivision will at least cause a district to become 86.29 ineligible to participate in the program. Notwithstanding rules 86.30 of the state boardof education, a pupil's rights under this 86.31 section cannot be waived by the state board. 86.32 Sec. 65. Minnesota Statutes 1997 Supplement, section 86.33 120.181, is amended to read: 86.34 120.181 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 86.35 EDUCATION AND TRANSPORTATION.] 86.36 The responsibility for providing instruction and 87.1 transportation for a pupil without a disability who has a 87.2 short-term or temporary physical or emotional illness or 87.3 disability, as determined by the standards of the state board, 87.4 and who is temporarily placed for care and treatment for that 87.5 illness or disability,shallmust be determined as provided in 87.6 this section. 87.7 (a) The school district of residence of the pupilshall be87.8 is the district in which the pupil's parent or guardian resides,87.9 orwhenthe district designated by the commissioner if neither 87.10the pupil'sparent nor guardianresidesis living within the 87.11 state and tuition has been denied, the district designated by87.12the commissioner of children, families, and learning. 87.13 (b)Prior toBefore the placement of a pupil for care and 87.14 treatment, the district of residenceshallmust be notified and 87.15 provided an opportunity to participate in the placement 87.16 decision. When an immediate emergency placement is necessary 87.17 and time does not permit resident district participation in the 87.18 placement decision, the district in which the pupil is 87.19 temporarily placed, if different from the district of residence, 87.20shallmust notify the district of residence of the emergency 87.21 placement within 15 days of the placement. 87.22 (c) When a pupil without a disability is temporarily placed 87.23 for care and treatment in a day program and the pupil continues 87.24 to live within the district of residence during the care and 87.25 treatment, the district of residenceshallmust provide 87.26 instruction and necessary transportation for the pupil. The 87.27 district may provide the instruction at a school within the 87.28 district of residence, at the pupil's residence, or in the case 87.29 of a placement outside of the resident district, in the district 87.30 in which the day treatment program is located by paying tuition 87.31 to that district. The district of placement may contract with a 87.32 facility to provide instruction by teachers licensed by the 87.33 state board of teaching. 87.34 (d) When a pupil without a disability is temporarily placed 87.35 in a residential program for care and treatment, the district in 87.36 which the pupil is placedshallmust provide instruction for the 88.1 pupil and necessary transportation while the pupil is receiving 88.2 instruction, and in the case of a placement outside of the 88.3 district of residence, the nonresident districtshallmust bill 88.4 the district of residence for the actual cost of providing the 88.5 instruction for the regular school year and for summer school, 88.6 excluding transportation costs. When a pupil without a 88.7 disability is temporarily placed in a residential program 88.8 outside the district of residence, the administrator of the 88.9 court placing the pupilshallmust send timely written notice of 88.10 the placement to the district of residence. The district of 88.11 placement may contract with a residential facility to provide 88.12 instruction by teachers licensed by the state board of teaching. 88.13 (e) The district of residenceshallmust include the pupil 88.14 in its residence count of pupil units and pay tuition as 88.15 provided in section 124.18 to the district providing the 88.16 instruction. Transportation costsshallmust be paid by the 88.17 district providing the transportation and the stateshallmust 88.18 pay transportation aid to that district. For purposes of 88.19 computing state transportation aid, pupils governed by this 88.20 subdivisionshallmust be included in the disabled 88.21 transportation category. 88.22 Sec. 66. Minnesota Statutes 1996, section 120.1811, is 88.23 amended to read: 88.24 120.1811 [RESIDENTIAL TREATMENT FACILITIES; EDUCATION.] 88.25 Subdivision 1. [EDUCATIONAL SCREENING.] Secure and 88.26 nonsecure residential treatment facilities licensed by the 88.27 department of human services or the department of corrections 88.28shallmust screen each juvenile who is held in a facility for at 88.29 least 72 hours, excluding weekends or holidays, using an 88.30 educational screening tool identified by the departmentof88.31children, families, and learning, unless the facility determines 88.32 that the juvenile has a current individual education plan and 88.33 obtains a copy of it. The departmentof children, families, and88.34learning shallmust develop or identify an education screening 88.35 tool for use in residential facilities. The tool must include a 88.36 life skills development component. 89.1 Subd. 2. [RULEMAKING.] The state boardof educationmay, 89.2 in consultation with the commissioners of corrections and human 89.3 services, make or amend rules relating to education programs in 89.4 residential treatment facilities, if necessary, to implement 89.5 this section. 89.6 Sec. 67. Minnesota Statutes 1996, section 120.182, is 89.7 amended to read: 89.8 120.182 [SPECIAL EDUCATION DIRECTOR.] 89.9 The authority for the selection and employment of the 89.10 director of a special education cooperative established pursuant 89.11 to section 120.17 or 471.59shall beis vested in the governing 89.12 board of the cooperative. Notwithstanding the provisions of 89.13 section 125.12, subdivision 6a or 6b, no individual shall have a 89.14 right to employment as a director based on seniority or order of 89.15 employment by the cooperative. 89.16 Sec. 68. Minnesota Statutes 1996, section 120.183, is 89.17 amended to read: 89.18 120.183 [INTERAGENCY OFFICE ON TRANSITION SERVICES.] 89.19 The commissionerof children, families, and learning shall89.20 must establish an interagency office on transition services to: 89.21 (1) gather and coordinate data on transition services for 89.22 secondary age pupils with a disability; 89.23 (2) provide information, consultation, and technical 89.24 assistance to state and local agencies involved in the delivery 89.25 of services to pupils with a disability in transition from 89.26 secondary school programs to employment and post-secondary 89.27 training programs; 89.28 (3) assist agencies in establishing local interagency 89.29 agreements to assure the necessary services for efficient and 89.30 appropriate transition from school to work or post-secondary 89.31 training programs; and 89.32 (4) assist regions and local areas in planning interagency 89.33 in-service training to develop and improve transition services. 89.34 Sec. 69. Minnesota Statutes 1996, section 120.185, is 89.35 amended to read: 89.36 120.185 [ACCOMMODATING STUDENTS WITH DISABILITIES.] 90.1 A school orschooldistrictshallmust provide a student 90.2 who is an "individual with a disability" under Section 504 of 90.3 the Rehabilitation Act of 1973, United States Code, title 29, 90.4 section 794, or under the Americans with Disabilities Act, 90.5 Public Law Number 101-336, with reasonable accommodations or 90.6 modifications in programs. 90.7 Sec. 70. Minnesota Statutes 1996, section 120.188, is 90.8 amended to read: 90.9 120.188 [PURCHASING GUIDELINES.] 90.10 Subdivision 1. [RIGHTS OFSCHOOLDISTRICTS TO PURCHASE 90.11 SCHOOL-OWNED ASSISTIVE TECHNOLOGY.] (a) When a child with a 90.12 disability exits aschooldistrict and enters a newschool90.13 district, the child's newschooldistrict may purchase any 90.14 assistive technology devices that the child's formerschool90.15 district has purchased on the child's behalf. The child's new 90.16schooldistrict must notify, in writing, the child's former 90.17schooldistrict of the intent to purchase the device. The 90.18 child's newschooldistrict must complete a purchase agreement 90.19 according to section 120.1701, subdivision 10. The child's 90.20 formerschooldistrict must respond, in writing, to the request 90.21 to purchase within 30 days. 90.22 (b)SchoolDistricts may decline to sell a device if they 90.23 can demonstrate the technology is a general use device or can be 90.24 modified for use by other students. 90.25 Subd. 2. [LIABILITY FOR USED EQUIPMENT.] The child's 90.26 formerschooldistrictshallis notbeliable for any 90.27 nonconformities in the equipment after it is purchased by the 90.28 child's newschooldistrict, or for injuries arising out of the 90.29 use of the assistive technology device. This section does not 90.30 foreclose the child's right to bring suit against the 90.31 manufacturer, assistive device lessor, or assistive device 90.32 dealer for nonconformities in or injuries arising out of the use 90.33 of the assistive technology device. 90.34 Subd. 3. [THIRD-PARTY PAYORS.] Nothing contained in this 90.35 sectionshallmay be construed as decreasing the obligation of 90.36 an insurance company or other third-party payor to provide 91.1 coverage for assistive technology. 91.2 Sec. 71. Minnesota Statutes 1996, section 120.189, is 91.3 amended to read: 91.4 120.189 [INTERAGENCY AGREEMENT TO PURCHASE USED ASSISTIVE 91.5 TECHNOLOGY DEVICES.] 91.6 Subdivision 1. [OPTION TO PURCHASE BY DEPARTMENT OF 91.7 ECONOMIC SECURITY.] (a) When a child with a disability 91.8 transitions into a work environment or enrolls in a 91.9 post-secondary course or program, the department of economic 91.10 security may purchase any assistive technology device that the 91.11 child's formerschooldistrict purchased on the child's behalf. 91.12 (b) The department of economic security may purchase an 91.13 assistive technology device initially purchased by aschool91.14 district for a child who is currently a recipient of 91.15 rehabilitation services and who needs the identical assistive 91.16 technology device as stated on the recipient's individual 91.17 written rehabilitation plan. The purchase may be made not more 91.18 than three monthsprior tobefore the childexitingexits the 91.19schooldistrict. 91.20 Subd. 2. [LIABILITY FOR USED EQUIPMENT.] The department of 91.21 economic security and the department of children, families, and 91.22 learningshallare notbeliable for any nonconformities in the 91.23 equipment after it is purchased by the department of economic 91.24 security, or for injuries arising out of the use of the 91.25 assistive technology device. This section does not foreclose 91.26 the child's right to bring suit against the manufacturer, 91.27 assistive device lessor, or assistive device dealer for 91.28 nonconformities in or injuries arising out of the use of the 91.29 assistive technology device. 91.30 Subd. 3. [THIRD-PARTY PAYOR.] Nothing contained in this 91.31 sectionshallmay be construed as decreasing the obligation of 91.32 an insurance company or other third-party payor to provide 91.33 coverage for assistive technology. 91.34 Sec. 72. Minnesota Statutes 1996, section 120.190, is 91.35 amended to read: 91.36 120.190 [PURCHASE AGREEMENT; PRICE FORMULA.] 92.1 The commissionershallmust develop guidelines for the sale 92.2 of used assistive technology including a purchase agreement, a 92.3 formula for establishing the sale price, and other terms and 92.4 conditions of the sale. 92.5 Sec. 73. Minnesota Statutes 1996, section 120.80, is 92.6 amended to read: 92.7 120.80 [EARLY GRADUATION.] 92.8 Subdivision 1. Notwithstanding any law to the contrary, 92.9 any secondary school student who has completed all required 92.10 courses may, with the approval of the student, the student's 92.11 parent or guardian, and local school officials, graduateprior92.12tobefore the completion of the school year. General education 92.13 revenue attributable to the student must be paid as though the 92.14 student was in attendance for the entire year. 92.15 Sec. 74. Minnesota Statutes 1996, section 123.3513, is 92.16 amended to read: 92.17 123.3513 [ADVANCED ACADEMIC CREDIT.] 92.18 Aschooldistrictshallmust grant academic credit to a 92.19 pupil attending an accelerated or advanced academic course 92.20 offered by a higher education institution or a nonprofit public 92.21 agency other than the district, if the pupil successfully 92.22 completes the course attended and passes an examination approved 92.23 by the district. If no comparable course is offered by the 92.24 district, the commissioner shall determine the number of credits 92.25 which shall be granted to a pupil who successfully completes and 92.26 passes the course. If a comparable course is offered by the 92.27 district, theschoolboardshallmust grant a comparable number 92.28 of credits to the pupil. If there is a dispute between the 92.29 district and the pupil regarding the number of credits granted 92.30 for a particular course, the pupil may appeal the school board's 92.31 decision to the commissioner. The commissioner's decision 92.32 regarding the number of credits shall be final. 92.33 The credits granted to a pupil shall be counted toward the 92.34 graduation requirements and subject area requirements of the 92.35schooldistrict. Evidence of successful completion of each 92.36 class and credits granted shall be included in the pupil's 93.1 secondary school record. 93.2 Sec. 75. Minnesota Statutes 1996, section 123.3514, 93.3 subdivision 3, is amended to read: 93.4 Subd. 3. [DEFINITIONS.] For purposes of this section,an93.5 the following terms have the meanings given to them. 93.6 (a) "Eligible institution" means a Minnesota public 93.7 post-secondary institution, a private, nonprofit two-year trade 93.8 and technical school granting associate degrees, an 93.9 opportunities industrialization center accredited by the North 93.10 Central Association of Colleges and Schools, or a private, 93.11 residential, two-year or four-year, liberal arts, 93.12 degree-granting college or university located in Minnesota. 93.13 "Course" means a course or program. 93.14 (b) "Course" means a course or program. 93.15 Sec. 76. Minnesota Statutes 1997 Supplement, section 93.16 123.3514, subdivision 4, is amended to read: 93.17 Subd. 4. [AUTHORIZATION; NOTIFICATION.] Notwithstanding 93.18 any other law to the contrary, an 11th or 12th grade pupil 93.19 enrolled in a school or an American Indian-controlled tribal 93.20 contract or grant school eligible for aid under section 124.86, 93.21 except a foreign exchange pupil enrolled in a district under a 93.22 cultural exchange program, may apply to an eligible institution, 93.23 as defined in subdivision 3, to enroll in nonsectarian courses 93.24 offered by that post-secondary institution. If an institution 93.25 accepts a secondary pupil for enrollment under this section, the 93.26 institution shall send written notice to the pupil, the pupil's 93.27 school or school district, and the commissionerof children,93.28families, and learningwithin ten days of acceptance. The 93.29 noticeshallmust indicate the course and hours of enrollment of 93.30 that pupil. If the pupil enrolls in a course for post-secondary 93.31 credit, the institutionshallmust notify the pupil about 93.32 payment in the customary manner used by the institution. 93.33 Sec. 77. Minnesota Statutes 1997 Supplement, section 93.34 123.3514, subdivision 4a, is amended to read: 93.35 Subd. 4a. [COUNSELING.] To the extent possible, the school 93.36 or school districtshallmust provide counseling services to 94.1 pupils and their parents or guardian before the pupils enroll in 94.2 courses under this section to ensure that the pupils and their 94.3 parents or guardian are fully aware of the risks and possible 94.4 consequences of enrolling in post-secondary courses. The school 94.5 or school districtshallmust provide information on the program 94.6 including who may enroll, what institutions and courses are 94.7 eligible for participation, the decision-making process for 94.8 granting academic credits, financial arrangements for tuition, 94.9 books and materials, eligibility criteria for transportation 94.10 aid, available support services, the need to arrange an 94.11 appropriate schedule, consequences of failing or not completing 94.12 a course in which the pupil enrolls, the effect of enrolling in 94.13 this program on the pupil's ability to complete the required 94.14 high school graduation requirements, and the academic and social 94.15 responsibilities that must be assumed by the pupils and their 94.16 parents or guardian. The person providing counseling shall 94.17 encourage pupils and their parents or guardian to also use 94.18 available counseling services at the post-secondary institutions 94.19 before the quarter or semester of enrollment to ensure that 94.20 anticipated plans are appropriate. 94.21 Prior to enrolling in a course, the pupil and the pupil's 94.22 parents or guardian must sign a form that must be provided by 94.23 the school or school district and may be obtained from a 94.24 post-secondary institution stating that they have received the 94.25 information specified in this subdivision and that they 94.26 understand the responsibilities that must be assumed in 94.27 enrolling in this program. The departmentof children,94.28families, and learning shallmust, upon request, provide 94.29 technical assistance to a school or school district in 94.30 developing appropriate forms and counseling guidelines. 94.31 Sec. 78. Minnesota Statutes 1996, section 123.3514, 94.32 subdivision 4b, is amended to read: 94.33 Subd. 4b. [DISSEMINATION OF INFORMATION; NOTIFICATION OF 94.34 INTENT TO ENROLL.] By March 1 of each year, aschooldistrict 94.35shallmust provide general information about the program to all 94.36 pupils in grades 10 and 11. To assist the district in planning, 95.1 a pupil shall inform the district by March 30 of each year of 95.2 the pupil's intent to enroll in post-secondary courses during 95.3 the following school year. A pupil is not bound by notifying or 95.4 not notifying the district by March 30. 95.5 Sec. 79. Minnesota Statutes 1996, section 123.3514, 95.6 subdivision 4d, is amended to read: 95.7 Subd. 4d. [ENROLLMENT PRIORITY.] A post-secondary 95.8 institution shall give priority to its post-secondary students 95.9 when enrolling 11th and 12th grade pupils in its courses. A 95.10 post-secondary institution may provide information about its 95.11 programs to a secondary school or to a pupil or parent, but it 95.12 may not advertise or otherwise recruit or solicit the 95.13 participation on financial grounds, secondary pupils to enroll 95.14 in its programs. An institutionshallmust not enroll secondary 95.15 pupils, for post-secondary enrollment options purposes, in 95.16 remedial, developmental, or other courses that are not college 95.17 level. Once a pupil has been enrolled in a post-secondary 95.18 course under this section, the pupil shall not be displaced by 95.19 another student. 95.20 Sec. 80. Minnesota Statutes 1997 Supplement, section 95.21 123.3514, subdivision 4e, is amended to read: 95.22 Subd. 4e. [COURSES ACCORDING TO AGREEMENTS.] An eligible 95.23 pupil, according to subdivision 4, may enroll in a nonsectarian 95.24 course taught by a secondary teacher or a post-secondary faculty 95.25 member and offered at a secondary school, or another location, 95.26 according to an agreement between a public school board and the 95.27 governing body of an eligible public post-secondary system or an 95.28 eligible private post-secondary institution, as defined in 95.29 subdivision 3. All provisions of this section shall apply to a 95.30 pupil, public school board,schooldistrict, and the governing 95.31 body of a post-secondary institution, except as otherwise 95.32 provided. 95.33 Sec. 81. Minnesota Statutes 1996, section 123.3514, 95.34 subdivision 5, is amended to read: 95.35 Subd. 5. [CREDITS.] A pupil may enroll in a course under 95.36 this section for either secondary credit or post-secondary 96.1 credit. At the time a pupil enrolls in a course, the pupil 96.2 shall designate whether the course is for secondary or 96.3 post-secondary credit. A pupil taking several courses may 96.4 designate some for secondary credit and some for post-secondary 96.5 credit. A pupil must not audit a course under this section. 96.6 Aschooldistrict shall grant academic credit to a pupil 96.7 enrolled in a course for secondary credit if the pupil 96.8 successfully completes the course. Seven quarter or four 96.9 semester college credits equal at least one full year of high 96.10 school credit. Fewer college credits may be prorated. Aschool96.11 districtshallmust also grant academic credit to a pupil 96.12 enrolled in a course for post-secondary credit if secondary 96.13 credit is requested by a pupil. If no comparable course is 96.14 offered by the district, the districtshallmust, as soon as 96.15 possible, notify the commissioner,whichwho shall determine the 96.16 number of credits that shall be granted to a pupil who 96.17 successfully completes a course. If a comparable course is 96.18 offered by the district, the school board shall grant a 96.19 comparable number of credits to the pupil. If there is a 96.20 dispute between the district and the pupil regarding the number 96.21 of credits granted for a particular course, the pupil may appeal 96.22 theschoolboard's decision to the commissioner. The 96.23 commissioner's decision regarding the number of credits shall be 96.24 final. 96.25 The secondary credits granted to a pupilshallmust be 96.26 counted toward the graduation requirements and subject area 96.27 requirements of theschooldistrict. Evidence of successful 96.28 completion of each course and secondary credits grantedshall96.29 must be included in the pupil's secondary school record. A 96.30 pupilmustshall provide the school with a copy of the pupil's 96.31 grade in each course taken for secondary credit under this 96.32 section. Upon the request of a pupil, the pupil's secondary 96.33 school recordshallmust also include evidence of successful 96.34 completion and credits granted for a course taken for 96.35 post-secondary credit. In either case, the recordshallmust 96.36 indicate that the credits were earned at a post-secondary 97.1 institution. 97.2 If a pupil enrolls in a post-secondary institution after 97.3 leaving secondary school, the post-secondary institutionshall97.4 must award post-secondary credit for any course successfully 97.5 completed for secondary credit at that institution. Other 97.6 post-secondary institutions may award, after a pupil leaves 97.7 secondary school, post-secondary credit for any courses 97.8 successfully completed under this section. An institution may 97.9 not charge a pupil for the award of credit. 97.10 Sec. 82. Minnesota Statutes 1996, section 123.3514, 97.11 subdivision 6, is amended to read: 97.12 Subd. 6. [FINANCIAL ARRANGEMENTS.] For a pupil enrolled in 97.13 a course under this section, the departmentof children,97.14families, and learning shallmust make payments according to 97.15 this subdivision for courses that were taken for secondary 97.16 credit. 97.17 The departmentshallmust not make payments to a school 97.18 district or post-secondary institution for a course taken for 97.19 post-secondary credit only. The departmentshallmust not make 97.20 payments to a post-secondary institution for a course from which 97.21 a student officially withdraws during the first 14 days of the 97.22 quarter or semester or who has been absent from the 97.23 post-secondary institution for the first 15 consecutive school 97.24 days of the quarter or semester and is not receiving instruction 97.25 in the home or hospital. 97.26 A post-secondary institution shall receive the following: 97.27 (1) for an institution granting quarter credit, the 97.28 reimbursement per credit hour shall be an amount equal to 88 97.29 percent of the product of the formula allowance, multiplied by 97.30 1.3, and divided by 45; or 97.31 (2) for an institution granting semester credit, the 97.32 reimbursement per credit hour shall be an amount equal to 88 97.33 percent of the product of the general revenue formula allowance, 97.34 multiplied by 1.3, and divided by 30. 97.35 The departmentof children, families, and learning shall97.36 must pay to each post-secondary institution 100 percent of the 98.1 amount in clause (1) or (2) within 30 days of receiving initial 98.2 enrollment information each quarter or semester. If changes in 98.3 enrollment occur during a quarter or semester, the change shall 98.4 be reported by the post-secondary institution at the time the 98.5 enrollment information for the succeeding quarter or semester is 98.6 submitted. At any time the departmentof children, families,98.7and learningnotifies a post-secondary institution that an 98.8 overpayment has been made, the institution shall promptly remit 98.9 the amount due. 98.10 Sec. 83. Minnesota Statutes 1996, section 123.3514, 98.11 subdivision 6b, is amended to read: 98.12 Subd. 6b. [FINANCIAL ARRANGEMENTS, PUPILS AGE 21 OR OVER.] 98.13 For a pupil enrolled in a course according to this section, the 98.14 departmentof children, families, and learning shallmust make 98.15 payments according to this subdivision for courses taken to 98.16 fulfill high school graduation requirements by pupils eligible 98.17 for adult high school graduation aid. 98.18 The department must not make payments to aschooldistrict 98.19 or post-secondary institution for a course taken for 98.20 post-secondary credit only. The departmentshallmust not make 98.21 payments to a post-secondary institution for a course from which 98.22 a student officially withdraws during the first 14 days of the 98.23 quarter or semester or who has been absent from the 98.24 post-secondary institution for the first 15 consecutive school 98.25 days of the quarter or semester and is not receiving instruction 98.26 in the home or hospital. 98.27 A post-secondary institution shall receive the following: 98.28 (1) for an institution granting quarter credit, the 98.29 reimbursement per credit hour shall be an amount equal to 88 98.30 percent of the product of the formula allowance, multiplied by 98.31 1.3, and divided by 45; or 98.32 (2) for an institution granting semester credit, the 98.33 reimbursement per credit hour shall be an amount equal to 88 98.34 percent of the product of the general revenue formula allowance 98.35 multiplied by 1.3, and divided by 30. 98.36 The departmentof children, families, and learning shall99.1 must pay to each post-secondary institution 100 percent of the 99.2 amount in clause (1) or (2) within 30 days of receiving initial 99.3 enrollment information each quarter or semester. If changes in 99.4 enrollment occur during a quarter or semester, the change shall 99.5 be reported by the post-secondary institution at the time the 99.6 enrollment information for the succeeding quarter or semester is 99.7 submitted. At any time the departmentof children, families,99.8and learningnotifies a post-secondary institution that an 99.9 overpayment has been made, the institution shall promptly remit 99.10 the amount due. 99.11 A school district shall receive: 99.12 (1) for a pupil who is not enrolled in classes at a 99.13 secondary program, 12 percent of the general education formula 99.14 allowance times .65, times 1.3; or 99.15 (2) for a pupil who attends classes at a secondary program 99.16 part time, the general education formula allowance times .65, 99.17 times 1.3, times the ratio of the total number of hours the 99.18 pupil is in membership for courses taken by the pupil for credit 99.19 to 1020 hours. 99.20 Sec. 84. Minnesota Statutes 1997 Supplement, section 99.21 123.3514, subdivision 6c, is amended to read: 99.22 Subd. 6c. [FINANCIAL ARRANGEMENTS FOR COURSES PROVIDED 99.23 ACCORDING TO AGREEMENTS.] (a) The agreement between apublic99.24schoolboard and the governing body of a public post-secondary 99.25 system or private post-secondary institution shall set forth the 99.26 payment amounts and arrangements, if any, from thepublic school99.27 board to the post-secondary institution. No payments shall be 99.28 made by the departmentof children, families, and learning99.29 according to subdivision 6 or 6b. For the purpose of computing 99.30 state aids for aschooldistrict, a pupil enrolled according to 99.31 subdivision 4e shall be counted in the average daily membership 99.32 of theschooldistrict as though the pupil were enrolled in a 99.33 secondary course that is not offered in connection with an 99.34 agreement. Nothing in this subdivision shall be construed to 99.35 prohibit a public post-secondary system or private 99.36 post-secondary institution from receiving additional state 100.1 funding that may be available under any other law. 100.2 (b) If a course is provided under subdivision 4e, offered 100.3 at a secondary school, and taught by a secondary teacher, the 100.4 post-secondary system or institution must not require a payment 100.5 from the school board that exceeds the cost to the 100.6 post-secondary institution that is directly attributable to 100.7 providing that course. 100.8 Sec. 85. Minnesota Statutes 1996, section 123.3514, 100.9 subdivision 7a, is amended to read: 100.10 Subd. 7a. [TEXTBOOKS; MATERIALS.] All textbooks and 100.11 equipment provided to a pupil, and paid for under subdivision 6, 100.12 are the property of the pupil's school district of residence. 100.13 Each pupil is required to return all textbooks and equipment to 100.14 theschooldistrict after the course has ended. 100.15 Sec. 86. Minnesota Statutes 1996, section 123.3514, 100.16 subdivision 7b, is amended to read: 100.17 Subd. 7b. [SUPPORT SERVICES.] The post-secondary 100.18 institutionshallmust inform the pupil of the support services 100.19 available at that institution. If the student has an individual 100.20 education plan that provides general education support and 100.21 accommodations, the post-secondary institutionshallmust 100.22 provide the support services as described in the student's IEP 100.23 and the post-secondary institution and the district shall 100.24 negotiate an agreement on the rate to be charged for the 100.25 services. Nothing in this section shall prevent the student 100.26 from enrolling while the agreement is being developed. If the 100.27 parties cannot agree on the services, on application of either 100.28 party, the commissioner shall resolve the dispute in the same 100.29 manner the commissioner fixes tuition rates under section 100.30 120.17, subdivision 4. The commissioner's decision is binding 100.31 on both parties. 100.32 Sec. 87. Minnesota Statutes 1997 Supplement, section 100.33 123.3514, subdivision 8, is amended to read: 100.34 Subd. 8. [TRANSPORTATION.] A parent or guardian of a pupil 100.35 enrolled in a course for secondary credit may apply to the 100.36 pupil's district of residence for reimbursement for transporting 101.1 the pupil between the secondary school in which the pupil is 101.2 enrolled or the pupil's home and the post-secondary institution 101.3 that the pupil attends. The state shall provide state aid to a 101.4 district in an amount sufficient to reimburse the parent or 101.5 guardian for the necessary transportation costs when the 101.6 family's or guardian's income is at or below the poverty level, 101.7 as determined by the federal government. The reimbursement 101.8 shall be the pupil's actual cost of transportation or 15 cents 101.9 per mile traveled, whichever is less. Reimbursement may not be 101.10 paid for more than 250 miles per week. However, if the nearest 101.11 post-secondary institution is more than 25 miles from the 101.12 pupil's resident secondary school, the weekly reimbursement may 101.13 not exceed the reimbursement rate per mile times the actual 101.14 distance between the secondary school or the pupil's home and 101.15 the nearest post-secondary institution times ten. The state 101.16shallmust pay aid to the district according to this subdivision. 101.17 Sec. 88. Minnesota Statutes 1996, section 124.227, is 101.18 amended to read: 101.19 124.227 [INTERDISTRICT DESEGREGATION OR INTEGRATION 101.20 TRANSPORTATION GRANTS.] 101.21 (a) A district that provides transportation of pupils to 101.22 and from an interdistrict program for desegregation or 101.23 integration purposes may apply to the commissionerof children,101.24families, and learningfor a grant to cover the additional costs 101.25 of transportation. 101.26 (b) A district in the metropolitan area may apply to the 101.27 commissioner for a grant to cover the costs of transporting 101.28 pupils who are enrolled under section 120.062 if the enrollment 101.29 of the student in the nonresident district contributes to 101.30 desegregation or integration purposes. The commissionermust101.31 shall develop the form and manner of applications, the criteria 101.32 to be used to determine when transportation is for desegregation 101.33 or integration purposes, and the accounting procedure to be used 101.34 to determine excess costs. In determining the grant amount, the 101.35 commissionermustshall consider other revenue received by the 101.36 district for transportation for desegregation or integration 102.1 purposes. 102.2 (c) Grants may be awarded under paragraph (b) only if 102.3 grants awarded under paragraph (a) have been fully funded. 102.4 Sec. 89. Minnesota Statutes 1996, section 124.248, 102.5 subdivision 1, is amended to read: 102.6 Subdivision 1. [GENERAL EDUCATION REVENUE.] General 102.7 education revenueshallmust be paid to a charter school as 102.8 though it were aschooldistrict. The general education revenue 102.9 for each pupil unit is the state average general education 102.10 revenue per pupil unit minus $170, calculated without 102.11 compensatory revenue, transportation sparsity revenue, and the 102.12 transportation portion of the transition revenue adjustment, 102.13 plus compensatory revenue as though the school were a school 102.14 district. 102.15 Sec. 90. Minnesota Statutes 1996, section 124.248, 102.16 subdivision 1a, is amended to read: 102.17 Subd. 1a. [TRANSPORTATION REVENUE.] Transportation revenue 102.18shallmust be paid to a charter school that provides 102.19 transportation services according to section 120.064, 102.20 subdivision 15, according to this subdivision. Transportation 102.21 aid shall equal transportation revenue. 102.22 (a) In addition to the revenue under subdivision 1, a 102.23 charter school providing transportation servicesshallmust 102.24 receive general education aid for each pupil unit equal to the 102.25 sum of $170, plus the transportation sparsity allowance for the 102.26 school district in which the charter school is located, plus the 102.27 transportation transition allowance for theschooldistrict in 102.28 which the charter school is located. 102.29 (b) For the first two years that a charter school is 102.30 providing transportation services, the special programs 102.31 transportation revenue equals the charter school's actual cost 102.32 in the current school year for transportation services for 102.33 children with disabilities under section 124.223, subdivisions 102.34 4, 5, 7, and 8. For the third year of transportation services 102.35 and later fiscal years, the special programs transportation 102.36 revenue shall be computed according to section 124.225, 103.1 subdivision 14. 103.2 Sec. 91. Minnesota Statutes 1997 Supplement, section 103.3 124.248, subdivision 3, is amended to read: 103.4 Subd. 3. [SPECIAL EDUCATION AID.] Except as provided in 103.5 subdivision 1a, paragraph (b), special education aidshallmust 103.6 be paid to a charter school according to section 124.3201, as 103.7 though it were a school district. The charter school may charge 103.8 tuition to the district of residence as provided in section 103.9 120.17, subdivision 4. The charter school shall allocate its 103.10 special education levy equalization revenue to the resident 103.11 districts of the pupils attending the charter school. The 103.12 districts of residence shall levy as though they were 103.13 participating in a cooperative, as provided in section 124.321, 103.14 subdivision 3. 103.15 Sec. 92. Minnesota Statutes 1997 Supplement, section 103.16 124.248, subdivision 4, is amended to read: 103.17 Subd. 4. [OTHER AID, GRANTS, REVENUE.] (a) A charter 103.18 school is eligible to receive other aids, grants, and revenue 103.19 according to chapters 120 to 129, as though it were aschool103.20 district except that, notwithstanding section 124.195, 103.21 subdivision 3, the paymentsshallmust be of an equal amount on 103.22 each of the 23 payment dates unless a charter school is in its 103.23 first year of operation in which case it shall receive on its 103.24 first payment date ten percent of its cumulative amount 103.25 guaranteed for the year and 22 payments of an equal amount 103.26 thereafter the sum of which shall be 90 percent of the 103.27 cumulative amount guaranteed. However, it may not receive aid, 103.28 a grant, or revenue if a levy is required to obtain the money, 103.29 except as otherwise provided in this section. Federal aid 103.30 received by the state must be paid to the school, if it 103.31 qualifies for the aid as though it were a school district. 103.32 (b) A charter school may receive money from any source for 103.33 capital facilities needs. In the year-end report to the state 103.34 board of education, the charter school shall report the total 103.35 amount of funds received from grants and other outside sources. 103.36 Sec. 93. Minnesota Statutes 1996, section 124.273, 104.1 subdivision 3, is amended to read: 104.2 Subd. 3. [PARTICIPATION OF NONPUBLIC SCHOOL PUPILS.] In 104.3 counting the number of pupils of limited English proficiency for 104.4 purposes of this section, districts may include pupils of 104.5 limited English proficiency who attend nonpublic schools in the 104.6 district. A district which counts those pupils and receives aid 104.7 pursuant to this sectionshallmust offer those pupils the same 104.8 programs on the same terms that it offers to pupils of limited 104.9 English proficiency who attend the public school. A program 104.10 provided for a nonpublic school pupil pursuant to this 104.11 subdivisionshallmust be provided at a public school or a 104.12 neutral site as defined in section 123.932, subdivision 9. 104.13 Nonpublic school pupils served by a district's educational 104.14 program for pupils of limited English proficiencyshallmust be 104.15 counted for average daily membership pursuant to sections 104.16 124A.02, subdivisions 20 to 22, and 124A.034, subdivisions 1 to 104.17 2. 104.18 Sec. 94. Minnesota Statutes 1996, section 124.273, 104.19 subdivision 4, is amended to read: 104.20 Subd. 4. [APPLICATION DATES.] To obtain aid for limited 104.21 English proficiency programs, a districtshallmust submit 104.22 information required by the department to implement this section. 104.23 Sec. 95. Minnesota Statutes 1996, section 124.273, 104.24 subdivision 6, is amended to read: 104.25 Subd. 6. [RECORDS; AUDIT.] A district which applies for 104.26 aid pursuant to this sectionshallmust maintain records which 104.27 support the information contained in all of its applications. 104.28 The commissionerof children, families, and learningmay audit 104.29 these records upon request. A district which receives aid 104.30 pursuant to this sectionshallmust keepsuchadditional records 104.31 in the manner prescribed by the commissioner to ensure that an 104.32 educational program for pupils of limited English proficiency is 104.33 implemented and operated in accordance with sections 126.261 to 104.34 126.269. 104.35 Sec. 96. Minnesota Statutes 1996, section 124.273, 104.36 subdivision 7, is amended to read: 105.1 Subd. 7. [MONEY FROM OTHER SOURCES.] Aschooldistrict 105.2 providing a program for pupils of limited English proficiency 105.3shallmust be eligible to receive moneys for these programs from 105.4 other government agencies and from private sources when these 105.5 moneys are available. 105.6 Sec. 97. Minnesota Statutes 1996, section 124.311, 105.7 subdivision 1, is amended to read: 105.8 Subdivision 1. [INSTRUCTION.] Aschooldistrict may 105.9 receive assurance of mastery revenue to provide direct 105.10 instructional services to eligible pupils. 105.11 Sec. 98. Minnesota Statutes 1996, section 124.32, is 105.12 amended to read: 105.13 124.32 [CHILDREN WITH A DISABILITY.] 105.14 Subd. 2b. [TRAVEL AID.] The stateshallmust pay each 105.15 district one-half of the sum actually expended by a district for 105.16 necessary travel of essential personnel providing home-based 105.17 services to children with a disability under age five and their 105.18 families. 105.19 Subd. 4. [AID PAYMENT.] The aids provided for children 105.20 with a disabilityshallmust be paid to the district providing 105.21 the special instruction and services. General education 105.22 aidshallmust be paid to the district of the pupil's 105.23 residence. The total amount of aid paid may not exceed the 105.24 amount expended for children with a disability in the year for 105.25 which the aid is paid. 105.26 Subd. 6. [FULL STATE PAYMENT.] The stateshallmust pay 105.27 each district the actual cost incurred in providing instruction 105.28 and services for a child with a disability whose district of 105.29 residence has been determined by section 120.17, subdivision 8a, 105.30 and who is temporarily placed in a state institution or a 105.31 licensed residential facility for care and treatment. This 105.32 section does not apply to a child placed in a foster home or a 105.33 foster group home. 105.34 Upon following the procedure specified by the commissioner 105.35of children, families, and learning, the district may bill the 105.36 state the actual cost incurred in providing the services 106.1 including transportation costs and a proportionate amount of 106.2 capital expenditures and debt service, minus the amount of the 106.3 basic revenue, as defined in section 124A.22, subdivision 2, of 106.4 the district for the child and the special education aid, 106.5 transportation aid, and any other aid earned on behalf of the 106.6 child. The limitset forthin subdivision 4shall applyapplies 106.7 to aid paid pursuant to this subdivision. 106.8 To the extent possible, the commissioner shall obtain 106.9 reimbursement from another state for the cost of serving any 106.10 child whose parent or guardian resides in that state. The 106.11 commissioner may contract with the appropriate authorities of 106.12 other states to effect reimbursement. All money received from 106.13 other statesshallmust be paid to the state treasury and placed 106.14 in the general fund. 106.15 Subd. 7. [PROGRAM AND AID APPROVAL.] Before June 1 of each 106.16 year, each district providing special instruction and services 106.17 to children with a disabilityshallmust submit to the 106.18 commissioner an application for approval of these programs and 106.19 their budgets for the next fiscal year. The applicationshall106.20 must include an enumeration of the costs proposed as eligible 106.21 for state aid pursuant to this section and of the estimated 106.22 number and grade level of children with a disability in the 106.23 district who will receive special instruction and services 106.24 during the regular school year and in summer school programs 106.25 during the next fiscal year. The applicationshallmust also 106.26 include any other information deemed necessary by the 106.27 commissioner for the calculation of state aid and for the 106.28 evaluation of the necessity of the program, the necessity of the 106.29 personnel to be employed in the program, for determining the 106.30 amount which the program will receive from grants from federal 106.31 funds, or special grants from other state sources, and the 106.32 program's compliance with the rules and standards of the state 106.33 board. The commissioner shall review each application to 106.34 determine whether the program and the personnel to be employed 106.35 in the program are actually necessary and essential to meet the 106.36 district's obligation to provide special instruction and 107.1 services to children with a disability pursuant to sections 107.2 120.17 and 120.1701. The commissioner shall not approve aid 107.3 pursuant to this section for any program or for the salary of 107.4 any personnel determined to be unnecessary or unessential on the 107.5 basis of this review. The commissioner may withhold all or any 107.6 portion of the aid for programs which receive grants from 107.7 federal funds, or special grants from other state sources. By 107.8 August 31 the commissioner shall approve, disapprove, or modify 107.9 each application, and notify each applying district of the 107.10 action and of the estimated amount of aid for the programs. The 107.11 commissioner shall provide procedures for districts to submit 107.12 additional applications for program and budget approval during 107.13 the fiscal year, for programs needed to meet any substantial 107.14 changes in the needs of children with a disability in the 107.15 district. Notwithstanding the provisions of section 124.15, the 107.16 commissioner may modify or withdraw the program or aid approval 107.17 and withhold aid pursuant to this section without proceeding 107.18 according to section 124.15 at any time the commissioner 107.19 determines that the program does not comply with rules of the 107.20 state board or that any facts concerning the program or its 107.21 budget differ from the facts in the district's approved 107.22 application. 107.23 Subd. 8. [REGULAR CLASSROOM PROGRAMS.] When planning 107.24 programs for the education of children with a disability in the 107.25 regular classroom, school districts are encouraged to consider 107.26 the size of the regular class and to provide the support 107.27 services necessary toinsureensure successful mainstreaming. 107.28 Subd. 10. [SUMMER SCHOOL.] By March 15 of each year, 107.29 districtsshallmust submit separate applications for program 107.30 and budget approval for summer school programs. The review of 107.31 these applicationsshallmust be reviewed as provided in 107.32 subdivision 7. By May 1 of each year, the commissioner shall 107.33 approve, disapprove, or modify the applications and notify the 107.34 districts of the action and of the estimated amount of aid for 107.35 the summer school programs. 107.36 Subd. 12. [ALLOCATION FROM COOPERATIVE CENTERS, SERVICE 108.1 COOPERATIVES, EDUCATION DISTRICTS, AND INTERMEDIATE DISTRICTS.] 108.2 For purposes of this section, a special education cooperative, 108.3 service cooperative, education district, or an intermediate 108.4 districtshallmust allocate its approved expenditures for 108.5 special education programs among participatingschooldistricts. 108.6 Special education aid for services provided by a cooperative, 108.7 service cooperative, education district, or intermediate 108.8 districtshallmust be paid to the participating school 108.9 districts. 108.10 Sec. 99. Minnesota Statutes 1996, section 124.3201, 108.11 subdivision 5, is amended to read: 108.12 Subd. 5. [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] (a) 108.13 A school district's special education revenue for fiscal year 108.14 1996 and later equals the state total special education revenue, 108.15 minus the amount determined under paragraph (b), times the ratio 108.16 of the district's adjusted special education base revenue to the 108.17 state total adjusted special education base revenue. If the 108.18 state board of education modifies its rules for special 108.19 education in a manner that increases aschooldistrict's special 108.20 education obligations or service requirements, the commissioner 108.21of children, families, and learningshall annually increase each 108.22 district's special education revenue by the amount necessary to 108.23 compensate for the increased service requirements. The 108.24 additional revenue equals the cost in the current year 108.25 attributable to rule changes not reflected in the computation of 108.26 special education base revenue, multiplied by the appropriate 108.27 percentages from subdivision 2. 108.28 (b) Notwithstanding paragraph (a), if the special education 108.29 base revenue for a district equals zero, the special education 108.30 revenue equals the amount computed according to subdivision 2 108.31 using current year data. 108.32 Sec. 100. Minnesota Statutes 1996, section 124.3201, 108.33 subdivision 6, is amended to read: 108.34 Subd. 6. [SPECIAL EDUCATION AID.] Aschooldistrict's 108.35 special education aid for fiscal year 1996 and later equals the 108.36 district's special education revenue times the aid percentage 109.1 factor for that year. 109.2 Sec. 101. Minnesota Statutes 1996, section 124.3201, 109.3 subdivision 7, is amended to read: 109.4 Subd. 7. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 109.5 INTERMEDIATES.] For the purposes of this section and section 109.6 124.321, a special education cooperative or an intermediate 109.7 districtshallmust allocate its approved expenditures for 109.8 special education programs among participating school districts. 109.9 Sec. 102. Minnesota Statutes 1997 Supplement, section 109.10 124.321, subdivision 1, is amended to read: 109.11 Subdivision 1. [LEVY EQUALIZATION REVENUE.](a)For fiscal 109.12 year 1999, special education levy equalization revenue for a 109.13 school district, excluding an intermediate school district, 109.14 equals the sum of the following amounts: 109.15 (1) the levy percentage factor for that year times the 109.16 district's special education revenue under section 124.3201; 109.17 plus 109.18 (2) the levy percentage factor for that year times the 109.19 district's special education excess cost revenue under section 109.20 124.323; plus 109.21 (3) the levy percentage factor for that year times the 109.22 district's school-to-work program for children with a disability 109.23 revenue under section 124.574. 109.24 Sec. 103. Minnesota Statutes 1997 Supplement, section 109.25 124.321, subdivision 2, is amended to read: 109.26 Subd. 2. [REVENUE ALLOCATION FROM STATE ACADEMIES.] (a) 109.27 For purposes of this section, the Minnesota state academy for 109.28 the deaf or the Minnesota state academy for the blind each year 109.29shallmust allocate an amount equal to the levy percentage 109.30 factor for that year times their special education revenue under 109.31 section 124.3201 for the year to each school district that 109.32 assigns a child with an individual education plan requiring an 109.33 instructional aide to attend either academy. Theschool109.34 districts that assign a child who requires an instructional aide 109.35 may make a levy in the amount of the costs allocated to them by 109.36 either academy. 110.1 (b) When the Minnesota state academy for the deaf or the 110.2 Minnesota state academy for the blind allocates revenue among 110.3 school districts that assign a child who requires an 110.4 instructional aide, for purposes of the districts making a levy 110.5 under this subdivision, the academyshallmust provide 110.6 information to the departmentof children, families, and110.7learningon the amount of revenue it allocated to the school 110.8 districts that assign a child who requires an instructional aide. 110.9 Sec. 104. Minnesota Statutes 1996, section 124.322, 110.10 subdivision 1, is amended to read: 110.11 Subdivision 1. [ELIGIBILITY.] A district is eligible for 110.12 an alternative delivery base revenue adjustment if the 110.13 commissionerof children, families, and learninghas approved 110.14 the application of the district according to section 120.173. 110.15 Sec. 105. Minnesota Statutes 1997 Supplement, section 110.16 124.322, subdivision 1a, is amended to read: 110.17 Subd. 1a. [BASE REVENUE ADJUSTMENT.] For the third fiscal 110.18 year after approval of a district's application, and thereafter, 110.19 the special education base revenue under section 124.3201, 110.20 subdivision 1,shallmust be computed based on activities 110.21 defined as reimbursable under state board rules for special 110.22 education and nonspecial education students, and additional 110.23 activities as detailed and approved by the commissionerof110.24children, families, and learning. 110.25 Sec. 106. Minnesota Statutes 1997 Supplement, section 110.26 124.323, subdivision 1, is amended to read: 110.27 Subdivision 1. [DEFINITIONS.]InFor the purposes of this 110.28 section, the definitions in this subdivision apply. 110.29 (a) "Unreimbursed special education cost" means the sum of 110.30 the following: 110.31 (1) expenditures for teachers' salaries, contracted 110.32 services, supplies, equipment, and transportation services 110.33 eligible for revenue under section 124.3201; plus 110.34 (2) expenditures for tuition bills received under section 110.35 120.17 for services eligible for revenue under sections 110.36 124.3201, subdivision 2, and 124.3202, subdivision 1; minus 111.1 (3) revenue for teachers' salaries, contracted services, 111.2 supplies, and equipment under sections 124.3201 and 124.3202; 111.3 minus 111.4 (4) tuition receipts under section 120.17 for services 111.5 eligible for revenue under sections 124.3201, subdivision 2, and 111.6 124.3202, subdivision 1. 111.7 (b) "General revenue,"for fiscal year 1996,means for 111.8 fiscal year 1996, the sum of the general education revenue 111.9 according to section 124A.22, subdivision 1, as adjusted 111.10 according to section 124A.036, subdivision 5, plus the total 111.11 referendum revenue according to section 124A.03, subdivision 111.12 1e. For fiscal years 1997 and later, "general revenue" means 111.13 the sum of the general education revenue according to section 111.14 124A.22, subdivision 1, as adjusted according to section 111.15 124A.036, subdivision 5, plus the total referendum revenue minus 111.16 transportation sparsity revenue minus total operating capital 111.17 revenue. 111.18 Sec. 107. Minnesota Statutes 1996, section 124.48, as 111.19 amended by Laws 1997, chapter 192, section 20, is amended to 111.20 read: 111.21 124.48 [INDIAN SCHOLARSHIPS.] 111.22 Subdivision 1. [AWARDS.] The state board, with the advice 111.23 and counsel of the Minnesota Indian scholarship committee, may 111.24 award scholarships to any Minnesota resident student who is of 111.25 one-fourth or more Indian ancestry, who has applied for other 111.26 existing state and federal scholarship and grant programs, and 111.27 who, in the opinion of the board, has the capabilities to 111.28 benefit from further education. Scholarshipsshallmust be for 111.29 advanced or specialized education in accredited or approved 111.30 colleges or in business, technical or vocational schools. 111.31 Scholarships shall be used to defray the total cost of education 111.32 including tuition, incidental fees, books, supplies, 111.33 transportation, other related school costs and the cost of board 111.34 and room and shall be paid directly to the college or school 111.35 concerned. The total cost of education includes all tuition and 111.36 fees for each student enrolling in a public institution and the 112.1 portion of tuition and fees for each student enrolling in a 112.2 private institution that does not exceed the tuition and fees at 112.3 a comparable public institution. Each student shall be awarded 112.4 a scholarship based on the total cost of the student's education 112.5 and a standardized need analysis. The amount and type of each 112.6 scholarship shall be determined through the advice and counsel 112.7 of the Minnesota Indian scholarship committee. 112.8 When an Indian student satisfactorily completes the work 112.9 required by a certain college or school in a school year the 112.10 student is eligible for additional scholarships, if additional 112.11 training is necessary to reach the student's educational and 112.12 vocational objective. Scholarships may not be given to any 112.13 Indian student for more than five years of study without special 112.14 approval of the Minnesota Indian scholarship committee. 112.15 Subd. 3. [INDIAN SCHOLARSHIP COMMITTEE.] The Minnesota 112.16 Indian scholarship committee is established.Members shall be112.17appointed byThe state board must appoint members with the 112.18 assistance of the Indian affairs council as provided in section 112.19 3.922, subdivision 6. Members shall be reimbursed for expenses 112.20 as provided in section 15.059, subdivision 6. The state board 112.21 shall determine the membership terms and duration of the 112.22 committee, which expires no later than June 30, 2001. The 112.23 committee shall provide advice to the state board in awarding 112.24 scholarships to eligible American Indian students and in 112.25 administering the state board's duties regarding awarding of 112.26 American Indian post-secondary preparation grants to school 112.27 districts. 112.28 Sec. 108. Minnesota Statutes 1997 Supplement, section 112.29 124.481, is amended to read: 112.30 124.481 [INDIAN POST-SECONDARY PREPARATION GRANTS.] 112.31 The state board of education, with the advice of the 112.32 Minnesota Indian scholarship committee, may make grants to 112.33schooldistricts or tribal grant or contract schools to support 112.34 post-secondary preparation for secondary pupils who are of 112.35 one-fourth or more Indian ancestry and who, in the opinion of 112.36 the superintendent, have the capabilities to benefit from higher 113.1 education. Distribution of the grants must be in accordance 113.2 with a plan prepared by the state board, with the advice of the 113.3 Minnesota Indian scholarship committee, that describes the 113.4 objectives and methods of implementing the grant program, 113.5 including the manner in which grants will be distributed in 113.6 proportion to the geographical distribution of the Indian 113.7 population of the state. 113.8 Sec. 109. Minnesota Statutes 1996, section 124.573, 113.9 subdivision 2, is amended to read: 113.10 Subd. 2. [LIMIT.] The commissioner may withhold all or any 113.11 portion of the aid paid under this section for a secondary 113.12 vocational education program which receives funds from any other 113.13 source.In no event shallA district or center must not receive 113.14 a total amount of state aid pursuant to this section which, when 113.15 added to funds from other sources, will provide the program an 113.16 amount for salaries and travel which exceeds 100 percent of the 113.17 amount of its expenditures for salaries and travel in the 113.18 program. 113.19 Sec. 110. Minnesota Statutes 1996, section 124.573, 113.20 subdivision 2b, is amended to read: 113.21 Subd. 2b. [SECONDARY VOCATIONAL AID.] A district's 113.22 secondary vocational education aid for a fiscal year equals the 113.23 lesser of: 113.24 (a) $80 times the district's average daily membership in 113.25 grades 10 to 12; or 113.26 (b) 25 percent of approved expenditures for the following: 113.27 (1) salaries paid to essential, licensed personnel 113.28 providing direct instructional services to students in that 113.29 fiscal year for services rendered in the district's approved 113.30 secondary vocational education programs; 113.31 (2) contracted services provided by a public or private 113.32 agency other than a Minnesota school district or cooperative 113.33 center under subdivision 3a; 113.34 (3) necessary travel between instructional sites by 113.35 licensed secondary vocational education personnel; 113.36 (4) necessary travel by licensed secondary vocational 114.1 education personnel for vocational student organization 114.2 activities held within the state for instructional purposes; 114.3 (5) curriculum development activities that are part of a 114.4 five-year plan for improvement based on program assessment; 114.5 (6) necessary travel by licensed secondary vocational 114.6 education personnel for noncollegiate credit bearing 114.7 professional development; and 114.8 (7) specialized vocational instructional supplies. 114.9 (c) Up to ten percent of a district's secondary vocational 114.10 aid may be spent on equipment purchases. Districts using 114.11 secondary vocational aid for equipment purchases must report to 114.12 the departmentof children, families, and learningon the 114.13 improved learning opportunities for students that result from 114.14 the investment in equipment. 114.15 Sec. 111. Minnesota Statutes 1996, section 124.573, 114.16 subdivision 2e, is amended to read: 114.17 Subd. 2e. [ALLOCATION FROM COOPERATIVE CENTERS AND 114.18 INTERMEDIATE DISTRICTS.] For purposes of subdivisions 2b, 114.19 paragraph (b), and 2f, paragraph (b), a cooperative center or an 114.20 intermediate districtshallmust allocate its approved 114.21 expenditures for secondary vocational education programs among 114.22 participatingschooldistricts. For purposes of subdivision 2f, 114.23 paragraph (a), a cooperative center or an intermediate 114.24 districtshallmust allocate its secondary vocational aid for 114.25 fiscal year 1994 among participatingschooldistricts. For 1995 114.26 and later fiscal years, secondary vocational aid for services 114.27 provided by a cooperative center or an intermediate district 114.28 shall be paid to the participatingschooldistrict. 114.29 Sec. 112. Minnesota Statutes 1996, section 124.573, 114.30 subdivision 2f, is amended to read: 114.31 Subd. 2f. [AID GUARANTEE.] Notwithstanding subdivision 2b, 114.32 the secondary vocational education aid for aschooldistrict is 114.33 not less than the lesser of: 114.34 (a) 95 percent of the secondary vocational education aid 114.35 the district received for the previous fiscal year; or 114.36 (b) 40 percent of the approved expenditures for secondary 115.1 vocational programs included in subdivision 2b, paragraph (b). 115.2 Sec. 113. Minnesota Statutes 1996, section 124.573, 115.3 subdivision 3, is amended to read: 115.4 Subd. 3. [COMPLIANCE WITH RULES.] Aidshallmust be paid 115.5 under this section only for services rendered or for costs 115.6 incurred in secondary vocational education programs approved by 115.7 the commissioner and operated in accordance with rules 115.8 promulgated by the state board. These rulesshallmust provide 115.9 minimum student-staff ratios required for a secondary vocational 115.10 education program area to qualify for this aid. The rules must 115.11 not require the collection of data at the program or course 115.12 level to calculate secondary vocational aid. The rulesshall115.13 must not require any minimum number of administrative staff, any 115.14 minimum period of coordination time or extended employment for 115.15 secondary vocational education personnel, or the availability of 115.16 vocational student activities or organizations for a secondary 115.17 vocational education program to qualify for this aid. The 115.18 requirement in these rules that program components be available 115.19 for a minimum number of hoursshallmust not be construed to 115.20 prevent pupils from enrolling in secondary vocational education 115.21 courses on an exploratory basis for less than a full school 115.22 year. The state boardshallmust not require aschooldistrict 115.23 to offer more than four credits or 560 hours of vocational 115.24 education course offerings in any school year. Rules relating 115.25 to secondary vocational education programsshallmust not 115.26 incorporate the provisions of the state plan for vocational 115.27 education by reference. This aid shall be paid only for 115.28 services rendered and for costs incurred by essential, licensed 115.29 personnel who meet the work experience requirements for 115.30 licensure pursuant to the rules of the state board. Licensed 115.31 personnel means persons holding a valid secondary vocational 115.32 license issued by the commissioner, except that when. If an 115.33 average of five or fewer secondary full-time equivalent students 115.34 are enrolled per teacher in an approved post-secondary program 115.35 at intermediate district No. 287, 916, or 917, licensed 115.36 personnel means persons holding a valid vocational license 116.1 issued by the commissioner, the state board for vocational 116.2 technical education, or the board of trustees of the Minnesota 116.3 state colleges and universities. Notwithstanding section 116.4 124.15, the commissioner may modify or withdraw the program or 116.5 aid approval and withhold aid under this section without 116.6 proceeding under section 124.15 at any time. To do so, the 116.7 commissioner must determine that the program does not comply 116.8 with rules of the state board or that any facts concerning the 116.9 program or its budget differ from the facts in the district's 116.10 approved application. 116.11 Sec. 114. Minnesota Statutes 1996, section 124.573, 116.12 subdivision 3a, is amended to read: 116.13 Subd. 3a. [AID FOR CONTRACTED SERVICES.] In addition to 116.14 the provisions of subdivisions 2 and 3, a school district or 116.15 cooperative center may contract with a public or private agency 116.16 other than a Minnesota school district or cooperative center for 116.17 the provision of secondary vocational education services. The 116.18 state boardshallmust promulgate rules relating to program 116.19 approval procedures and criteria for these contracts and 116.20 aidshallmust be paid only for contracts approved by the 116.21 commissionerof children, families, and learning.For the116.22purposes of subdivision 4,The district or cooperative center 116.23 contracting for these servicesshallmust be construed to be 116.24 providing the services. 116.25 Sec. 115. Minnesota Statutes 1996, section 124.573, 116.26 subdivision 5a, is amended to read: 116.27 Subd. 5a. [DISTRICT REPORTS.] Each district or cooperative 116.28 centershallmust report data to the department for all 116.29 secondary vocational education programs as required by the 116.30 department to implement the secondary vocational aid formula. 116.31 Sec. 116. Minnesota Statutes 1997 Supplement, section 116.32 124.574, subdivision 9, is amended to read: 116.33 Subd. 9. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 116.34 INTERMEDIATE DISTRICTS.] For purposes of this section and 116.35 section 124.321, a cooperative center or an intermediate 116.36 districtshallmust allocate its approved expenditures for 117.1 school-to-work programs for children with a disability among 117.2 participating school districts. Aid for school-to-work programs 117.3 for children with a disability for services provided by a 117.4 cooperative or intermediate district shall be paid to the 117.5 participatingschooldistricts. 117.6 Sec. 117. Minnesota Statutes 1996, section 124.86, 117.7 subdivision 1, is amended to read: 117.8 Subdivision 1. [AUTHORIZATION.] (a) Each year each 117.9 American Indian-controlled tribal contract or grant school 117.10 authorized by the United States Code, title 25, section 450f, 117.11 that is located on a reservation within the state is eligible to 117.12 receive tribal contract or grant school aid subject to the 117.13 requirements inthis subdivisionparagraphs (b) to (d). 117.14(a)(b) The school must plan, conduct, and administer an 117.15 education program that complies with the requirements of either 117.16 this chapter and chapters 120, 121, 122, 123, 124A, 124C, 125, 117.17 126, 129, and 268A or Code of Federal Regulations, title 25, 117.18 sections 31.0 to 45.80. 117.19(b)(c) The school must comply with all other state 117.20 statutes governing independent school districts or their 117.21 equivalent in the Code of Federal Regulations, title 25. 117.22(c)(d) The state tribal contract or grant school aid must 117.23 be used to supplement, and not to replace, the money for 117.24 American Indian education programs provided by the federal 117.25 government. 117.26 Sec. 118. Minnesota Statutes 1997 Supplement, section 117.27 124.86, subdivision 2, is amended to read: 117.28 Subd. 2. [REVENUE AMOUNT.] An American Indian-controlled 117.29 tribal contract or grant school that is located on a reservation 117.30 within the state and that complies with the requirements in 117.31 subdivision 1 is eligible to receive tribal contract or grant 117.32 school aid. The amount of aid is derived by: 117.33 (1) multiplying the formula allowance under section 117.34 124A.22, subdivision 2, less $170, times the difference between 117.35(a)(i) the actual pupil units as defined in section 124A.02, 117.36 subdivision 15, in average daily membership, excluding section 118.1 124.17, subdivision 2f, and(b)(ii) the number of pupils for 118.2 the current school year, weighted according to section 124.17, 118.3 subdivision 1, receiving benefits under section 123.933 or 118.4 123.935 or for which the school is receiving reimbursement under 118.5 section 126.23; 118.6 (2) adding to the result in clause (1) an amount equal to 118.7 the product of the formula allowance under section 124A.22, 118.8 subdivision 2, less $300 times the tribal contract compensation 118.9 revenue pupil units; 118.10 (3) subtracting from the result in clause (2) the amount of 118.11 money allotted to the school by the federal government through 118.12 Indian School Equalization Program of the Bureau of Indian 118.13 Affairs, according to Code of Federal Regulations, title 25, 118.14 part 39, subparts A to E, for the basic program as defined by 118.15 section 39.11, paragraph (b), for the base rate as applied to 118.16 kindergarten through twelfth grade, excluding small school 118.17 adjustments and additional weighting, but not money allotted 118.18 through subparts F to L for contingency funds, school board 118.19 training, student training, interim maintenance and minor 118.20 repair, interim administration cost, prekindergarten, and 118.21 operation and maintenance, and the amount of money that is 118.22 received according to section 126.23; 118.23 (4) dividing the result in clause (3) by the sum of the 118.24 actual pupil units in average daily membership, excluding 118.25 section 124.17, subdivision 2f, plus the tribal contract 118.26 compensation revenue pupil units; and 118.27 (5) multiplying the sum of the actual pupil units, 118.28 including section 124.17, subdivision 2f, in average daily 118.29 membership plus the tribal contract compensation revenue pupil 118.30 units by the lesser of $1,500 or the result in clause (4). 118.31 Sec. 119. Minnesota Statutes 1996, section 124.86, 118.32 subdivision 3, is amended to read: 118.33 Subd. 3. [WAIVER.] Notwithstanding subdivision 1, 118.34 paragraphs(a)(b) and(b)(c), a tribal contract or grant 118.35 school: 118.36 (1) is not subject to the Minnesota election law; 119.1 (2) has no authority under this section to levy for 119.2 property taxes, issue and sell bonds, or incur debt; and 119.3 (3) may request through its managing tribal organization a 119.4 recommendation of the state board of education, for 119.5 consideration of the legislature, that a tribal contract or 119.6 grant school not be subject to specified statutes related to 119.7 independent school districts. 119.8 Sec. 120. Minnesota Statutes 1996, section 124.86, 119.9 subdivision 4, is amended to read: 119.10 Subd. 4. [EARLY CHILDHOOD FAMILY EDUCATION REVENUE.] A 119.11 school receiving aid under this section is eligible to receive 119.12 early childhood family education revenue to provide early 119.13 childhood family education programs for parents and children who 119.14 are enrolled or eligible for enrollment in a federally 119.15 recognized tribe. The revenue equals 1.5 times the statewide 119.16 average expenditure per participant under section 124.2711, 119.17 times the number of children and parents participating full time 119.18 in the program. The programshallmust comply with section 119.19 121.882, except that the school is not required to provide a 119.20 community education program or establish a community education 119.21 advisory council. The programshallmust be designed to improve 119.22 the skills of parents and promote American Indian history, 119.23 language, and culture. The schoolshallmust make affirmative 119.24 efforts to encourage participation by fathers. Admission may 119.25 not be limited to those enrolled in or eligible for enrollment 119.26 in a federally recognized tribe. 119.27 Sec. 121. Minnesota Statutes 1996, section 124.90, is 119.28 amended to read: 119.29 124.90 [MEDICAL ASSISTANCE PAYMENTS TO SCHOOL DISTRICTS.] 119.30 Subdivision 1. [ELIGIBILITY.] Aschooldistrict may enroll 119.31 as a provider in the medical assistance program and receive 119.32 medical assistance payments for covered special education 119.33 services provided to persons eligible for medical assistance 119.34 under chapter 256B. To receive medical assistance payments, the 119.35schooldistrict must comply with relevant provisions of state 119.36 and federal statutes and regulations governing the medical 120.1 assistance program. 120.2 Subd. 2. [FUNDING.] Aschooldistrict that provides a 120.3 covered service to an eligible person and complies with relevant 120.4 requirements of the medical assistance programshall beis 120.5 entitled to receive payment for the service provided, including 120.6 that portion of the payment that will subsequently be reimbursed 120.7 by the federal government, in the same manner as other medical 120.8 assistance providers. The school district is not required to 120.9 provide matching funds or pay part of the costs of the service, 120.10 as long as the rate charged for the service does not exceed 120.11 medical assistance limits that apply to all medical assistance 120.12 providers. 120.13 Subd. 3. [CONTRACT FOR SERVICES.] Aschooldistrict may 120.14 contract for the provision of medical assistance-covered 120.15 services, and may contract with a third party agency to assist 120.16 in administering and billing for these services. 120.17 Subd. 4. [PRIVATE INSURERS.] Aschooldistrict may enroll 120.18 as a provider for insurance companies to provide covered special 120.19 education services to eligible persons. To receive payments, 120.20 the district must comply with relevant state and federal 120.21 statutes. A district may contract for services, and may 120.22 contract with a third party agency to assist in administering 120.23 and billing for these services. 120.24 Subd. 5. [NO REDUCTION IN REVENUE.] Aschooldistrict's 120.25 revenue for special education programsshallmust not be reduced 120.26 by any payments for medical assistance or insurance received 120.27 according to this section. 120.28 Sec. 122. Minnesota Statutes 1997 Supplement, section 120.29 126.22, subdivision 2, is amended to read: 120.30 Subd. 2. [ELIGIBLE PUPILS.] The following pupils are 120.31 eligible to participate in the graduation incentives program: 120.32 (a) any pupil under the age of 21 who: 120.33 (1) performs substantially below the performance level for 120.34 pupils of the same age in a locally determined achievement test; 120.35or120.36 (2) is at least one year behind in satisfactorily 121.1 completing coursework or obtaining credits for graduation;or121.2 (3) is pregnant or is a parent;or121.3 (4) has been assessed as chemically dependent;or121.4 (5) has been excluded or expelled according to sections 121.5 127.26 to 127.39;or121.6 (6) has been referred by a school district for enrollment 121.7 in an eligible program or a program pursuant to section 126.23; 121.8or121.9 (7) is a victim of physical or sexual abuse;or121.10 (8) has experienced mental health problems;or121.11 (9) has experienced homelessness sometime within six months 121.12 before requesting a transfer to an eligible program;or121.13 (10) speaks English as a second language or has limited 121.14 English proficiency; or 121.15 (11) has withdrawn from school or has been chronically 121.16 truant; or 121.17 (b) any person who is at least 21 years of age and who: 121.18 (1) has received fewer than 14 years of public or nonpublic 121.19 education, beginning at age 5; 121.20 (2) has not completed the requirements for a high school 121.21 diploma; and 121.22 (3) at the time of application, (i) is eligible for 121.23 reemployment insurance benefits or has exhausted the benefits, 121.24 (ii) is eligible for, or is receiving income maintenance and 121.25 support services, as defined in section 268.0111, subdivision 5, 121.26 or (iii) is eligible for services under the displaced homemaker 121.27 program, state wage-subsidy program, or any programs under the 121.28 federal Jobs Training Partnership Act or its successor. 121.29 Sec. 123. Minnesota Statutes 1997 Supplement, section 121.30 126.22, subdivision 3a, is amended to read: 121.31 Subd. 3a. [ADDITIONAL ELIGIBLE PROGRAM.] A pupil who is at 121.32 least 16 years of age, who is eligible under subdivision 2, 121.33 clause (a), and who has been enrolled only in a public school, 121.34 if the pupil has been enrolled in any school, during the year 121.35 immediately before transferring under this subdivision, may 121.36 transfer to any nonpublic school that has contracted with the 122.1 serving school district to provide nonsectarian educational 122.2 services.Such aThe school must enroll every eligible pupil 122.3 who seeks to transfer to the school under this program subject 122.4 to available space. 122.5 Sec. 124. Minnesota Statutes 1996, section 126.22, 122.6 subdivision 5, is amended to read: 122.7 Subd. 5. [DISSEMINATION OF INFORMATION.] Aschooldistrict 122.8shallmust disseminate information, developed by the department 122.9of children, families, and learning, about the graduation 122.10 incentives program to residents in the district who are under 122.11 the age of 21. 122.12 Sec. 125. Minnesota Statutes 1996, section 126.22, 122.13 subdivision 6, is amended to read: 122.14 Subd. 6. [DESEGREGATION PLANS.] Notwithstanding any 122.15 provision to the contrary, students may not enroll in a 122.16 nonresident district under this section if their enrollment in 122.17 anotherschooldistrict would result in a violation of a 122.18 district's desegregation plan, as mandated and approved by the 122.19 state board of education. 122.20 Sec. 126. Minnesota Statutes 1997 Supplement, section 122.21 126.22, subdivision 8, is amended to read: 122.22 Subd. 8. [ENROLLMENT VERIFICATION.] (a) For a pupil 122.23 attending an eligible program full time under subdivision 3, 122.24 paragraph (d), the departmentof children, families, and122.25learning shallmust pay 90 percent of the district's average 122.26 general education revenue less compensatory revenue to the 122.27 eligible program and ten percent of the district's average 122.28 general education revenue less compensatory revenue to the 122.29 resident district within 30 days after the eligible program 122.30 verifies enrollment using the form provided by the department. 122.31 For a pupil attending an eligible program part time, revenue 122.32 shall be reduced proportionately, according to the amount of 122.33 time the pupil attends the program, and the payments to the 122.34 eligible program and the resident district shall be reduced 122.35 accordingly. A pupil for whom payment is made according to this 122.36 section may not be counted by any district for any purpose other 123.1 than computation of general education revenue. If payment is 123.2 made for a pupil under this subdivision, aschooldistrict shall 123.3 not reimburse a program under section 126.23 for the same pupil. 123.4 Compensatory revenue shall be paid according to section 124A.22, 123.5 subdivision 3. 123.6 (b) The departmentof children, families, and learning123.7shallmust pay up to 100 percent of the revenue to the eligible 123.8 program if there is an agreement to that effect between the 123.9 school district and the eligible program. 123.10 Sec. 127. Minnesota Statutes 1997 Supplement, section 123.11 126.23, subdivision 1, is amended to read: 123.12 Subdivision 1. [AID.] If a pupil enrolls in an alternative 123.13 program, eligible under section 126.22, subdivision 3, paragraph 123.14 (d), or subdivision 3a, operated by a private organization that 123.15 has contracted with a school district to provide educational 123.16 services for eligible pupils under section 126.22, subdivision 123.17 2, the district contracting with the private organization must 123.18 reimburse the provider an amount equal to at least 90 percent of 123.19 the district's average general education less compensatory 123.20 revenue per pupil unit times the number of pupil units for 123.21 pupils attending the program. Compensatory revenue must be 123.22 allocated according to section 124A.28, subdivision 1a. For a 123.23 pupil attending the program part time, the revenue paid to the 123.24 programshallmust be reduced proportionately, according to the 123.25 amount of time the pupil attends the program, and revenue paid 123.26 to the district shall be reduced accordingly. Pupils for whom a 123.27 district provides reimbursement may not be counted by the 123.28 district for any purpose other than computation of general 123.29 education revenue. If payment is made to a district or program 123.30 for a pupil under this section, the departmentof children,123.31families, and learning shallmust not make a payment for the 123.32 same pupil under section 126.22, subdivision 8. 123.33 Sec. 128. Minnesota Statutes 1996, section 126.235, is 123.34 amended to read: 123.35 126.235 [EDUCATIONAL PROGRAM FOR PREGNANT MINORS AND MINOR 123.36 PARENTS.] 124.1 Upon request, aschooldistrict must make available to a 124.2 pregnant minor or a minor custodial parent an educational 124.3 program to enable the minor to earn a high school diploma. The 124.4 departmentof children, families, and learning shallmust 124.5 develop program designs and provide districts with technical 124.6 assistance. A district's educational program must use 124.7 appropriate community services and must recognize each pupil's 124.8 individual needs and parental responsibilities. The district 124.9shallmust designate at least one person to review quarterly 124.10 each pupil's progress in the program. 124.11 If a pupil receives social services according to section 124.12 257.33 or employment and training services according to section 124.13 256.736, the districtshallmust develop the pupil's educational 124.14 program in consultation with the providers of the services and 124.15 shall provide a liaison when necessary. The pupil may request 124.16 that an adult, selected by the pupil, assist in developing the 124.17 educational program. 124.18 Sec. 129. Minnesota Statutes 1996, section 126.239, 124.19 subdivision 1, is amended to read: 124.20 Subdivision 1. [TRAINING PROGRAMS FOR TEACHERS.] A 124.21 secondary teacher assigned by aschooldistrict to teach an 124.22 advanced placement or international baccalaureate course may 124.23 participate in a training program offered by the college board 124.24 or International Baccalaureate North America, Inc. The state 124.25 may pay a portion of the tuition, room, and board costs a 124.26 teacher incurs in participating in a training program. The 124.27 commissionerof children, families, and learningshall determine 124.28 application procedures and deadlines, and select teachers to 124.29 participate in the training program. The procedures determined 124.30 by the commissioner shall, to the extent possible, ensure that 124.31 advanced placement and international baccalaureate courses 124.32 become available in all parts of the state and that a variety of 124.33 course offerings are available in school districts. This 124.34 subdivision does not prevent teacher participation in training 124.35 programs offered by the college board or International 124.36 Baccalaureate North America, Inc., when tuition is paid by a 125.1 source other than the state. 125.2 Sec. 130. Minnesota Statutes 1996, section 126.262, 125.3 subdivision 3, is amended to read: 125.4 Subd. 3. [ESSENTIAL INSTRUCTIONAL PERSONNEL.] "Essential 125.5 instructional personnel" means the following: 125.6 (a) A teacher licensed by the state board of teaching to 125.7 teach bilingual education or English as a second language; 125.8 (b) A teacher with an exemption from a teaching license 125.9 requirement pursuant to section 126.266 who is employed in a 125.10 school district's English as a second language or bilingual 125.11 education program; 125.12 (c) Any teacher as defined in section 125.03 who holds a 125.13 valid license from the state board of teaching, if the district 125.14 assures the departmentof children, families, and learningthat 125.15 the teacher will obtain the preservice and in-service training 125.16 the department considers necessary to enable the teacher to 125.17 provide appropriate service to pupils of limited English 125.18 proficiency. 125.19 Sec. 131. Minnesota Statutes 1996, section 126.262, 125.20 subdivision 6, is amended to read: 125.21 Subd. 6. [PRIMARY LANGUAGE.] "Primary language"ismeans a 125.22 language other than English which is the language normally used 125.23 by the child or the language which is spoken in the child's home 125.24 environment. 125.25 Sec. 132. Minnesota Statutes 1996, section 126.264, is 125.26 amended to read: 125.27 126.264 [RIGHTS OF PARENTS.] 125.28 Subdivision 1. [NOVICE.]No later thanWithin ten days 125.29 after the enrollment of any pupil in an instructional program 125.30 for limited English proficient students, theschooldistrict in 125.31 which the pupil residesshallmust notify the parentor guardian125.32 by mail. This noticeshallmust: 125.33 (a) Be in writing in English and in the primary language of 125.34 the pupil's parents; 125.35 (b) Inform the parents that their child has been enrolled 125.36 in an instructional program for limited English proficient 126.1 students; 126.2 (c) Contain a simple, nontechnical description of the 126.3 purposes, method and content of the program; 126.4 (d) Inform the parents that they have the right to visit 126.5 the educational program for limited English proficient students 126.6 in which their child is enrolled; 126.7 (e) Inform the parents of the time and manner in which to 126.8 request and receive a conference for the purpose of explaining 126.9 the nature and purpose of the program; and 126.10 (f) Inform the parents of their rights to withdraw their 126.11 child from an educational program for limited English proficient 126.12 students and the time and manner in which to do so. 126.13 The departmentof children, families, and learningshall, 126.14 at the request of theschooldistrict, prepare the notice in the 126.15 primary language of the parentor guardian. 126.16 Subd. 2. [WITHDRAWAL FROM PROGRAM.] Any parent whose child 126.17 is enrolled in an educational program for limited English 126.18 proficient students shall have the right, either at the time of 126.19 the original notification of enrollment or at the close of any 126.20 semester thereafter, to withdraw the child from the program by 126.21 providing written notice of this intent to the principal of the 126.22 school in which the child is enrolled or to the superintendent 126.23 of theschooldistrict in which the child resides. Nothing 126.24hereinin this section shall preclude a parent from reenrolling 126.25 a child of limited English proficiency in an educational program 126.26 for limited English proficient students. 126.27 Subd. 3. [PARENTAL INVOLVEMENT.] A district which receives 126.28 moneys pursuant to section 124.273shallmust encourage 126.29 involvement of parents of pupils enrolled in the educational 126.30 program for limited English proficient students in this 126.31 program. The district shall solicit the views of parents about 126.32 the program and its effects upon their children. 126.33 Sec. 133. Minnesota Statutes 1996, section 126.265, is 126.34 amended to read: 126.35 126.265 [GENERAL REQUIREMENTS FOR PROGRAMS.] 126.36 A district which receives aid pursuant to section 124.273 127.1shallmust comply with the following program requirements: 127.2 (a) To the extent possible, the districtshallmust avoid 127.3 isolating children of limited English proficiency for a 127.4 substantial part of the school day; and 127.5 (b) In predominantly nonverbal subjects, such as art, 127.6 music, and physical education, pupils of limited English 127.7 proficiency shall be permitted to participate fully and on an 127.8 equal basis with their contemporaries in public school classes 127.9 provided for these subjects. To the extent possible, theschool127.10 districtshallmust assure to pupils enrolled in a program for 127.11 limited English proficient students an equal and meaningful 127.12 opportunity to participate fully with other pupils in all 127.13 extracurricular activities. 127.14 Sec. 134. Minnesota Statutes 1996, section 126.266, 127.15 subdivision 1, is amended to read: 127.16 Subdivision 1. [EXEMPTIONS.] The commissionerof children,127.17families, and learningmay grant an exemption from the licensure 127.18 requirement in the hiring of teachers of English as a second 127.19 language or bilingual education teachers to aschooldistrict if 127.20 the commissioner finds that compliance would impose a hardship 127.21 upon the district in the securing of teachers for its 127.22 educational programs for limited English proficient students. 127.23 The commissionerof children, families, and learningshall 127.24 notify the board of teaching of any exemptions granted pursuant 127.25 to this section. 127.26 Sec. 135. Minnesota Statutes 1996, section 126.267, is 127.27 amended to read: 127.28 126.267 [TECHNICAL ASSISTANCE.] 127.29 The commissioner shall provide technical assistance to 127.30schooldistricts receiving aid pursuant to section 124.273 and 127.31 to post-secondary institutions for preservice and in-service 127.32 training for bilingual education teachers and English as a 127.33 second language teachers employed in educational programs for 127.34 limited English proficient students, teaching methods, 127.35 curriculum development, testing and testing mechanisms, and the 127.36 development of instructional materials for these educational 128.1 programs. 128.2 Sec. 136. Minnesota Statutes 1996, section 126.43, 128.3 subdivision 1, is amended to read: 128.4 Subdivision 1. [CULTURAL EXCHANGE PROGRAM GOALS.] (a) A 128.5 cultural exchange grant program is established to develop and 128.6 create opportunities for children and staff of different ethnic, 128.7 racial, and other cultural backgrounds to experience educational 128.8 and social exchange. Student and staff exchanges under this 128.9 section may only take place between a district with a 128.10 desegregation plan approved by the state board of education and 128.11 a district without a desegregation plan. Participating school 128.12 districts shall offer summer programs for credit with the goals 128.13 set forth in paragraphs(a)(b) to(d)(e). 128.14(a)(b) The programshallmust develop curriculum 128.15 reflective of particular ethnic, racial, and other cultural 128.16 aspects of various demographic groups in the state. 128.17(b)(c) The programshallmust develop immersion programs 128.18 that are coordinated with the programs offered in 128.19 paragraph(a)(b). 128.20(c)(d) The programshallmust create opportunities for 128.21 students from across the state to enroll in summer programs 128.22 inschooldistricts other than the one of residence, or in other 128.23 schools within their district of residence. 128.24(d)(e) The programshallmust create opportunities for 128.25 staff exchanges on a cultural basis. 128.26 Sec. 137. Minnesota Statutes 1996, section 126.43, 128.27 subdivision 2, is amended to read: 128.28 Subd. 2. [CULTURAL EXCHANGE GRANTS.] Aschooldistrict 128.29 together with a group ofschooldistricts, a cooperative 128.30 governmental unit, the center for arts and education, or a 128.31 post-secondary institution may apply for cultural exchange 128.32 grants. The commissionerof children, families, and learning128.33 shall determine grant recipients and may adopt application 128.34 guidelines. The grants must be competitively determined and 128.35 applicants must demonstrate: 128.36 (1) the capacity to develop a focused curriculum that 129.1 reflects the particular ethnic, racial, and other cultural 129.2 aspects of the community in which the school where the program 129.3 is offered is located; 129.4 (2) the capacity to develop immersion programs coordinated 129.5 with the curriculum developed in clause (1); 129.6 (3) the capacity to coordinate a cultural exchange program 129.7 with other curriculum programs to assure continuity in a pupil's 129.8 education; 129.9 (4) the capacity to maximize diversity of ethnic, racial, 129.10 and other cultural backgrounds of participants; 129.11 (5) that the application is jointly developed by 129.12 participants; and 129.13 (6) that the outcomes of the exchange program are clearly 129.14 articulated. 129.15 Sec. 138. Minnesota Statutes 1996, section 126.48, 129.16 subdivision 1, is amended to read: 129.17 Subdivision 1. [PROGRAM DESCRIBED.] American Indian 129.18 language and culture education programsshall beare programs in 129.19 elementary and secondary schools enrolling American Indian 129.20 children designed: 129.21 (1) to make the curriculum more relevant to the needs, 129.22 interests, and cultural heritage of American Indian pupils; 129.23 (2) to provide positive reinforcement of the self-image of 129.24 American Indian pupils; and 129.25 (3) to develop intercultural awareness among pupils, 129.26 parents, and staff. Program components may include: 129.27 instruction in American Indian language, literature, history, 129.28 and culture; development of support components for staff, 129.29 including in-service training and technical assistance in 129.30 methods of teaching American Indian pupils; research projects, 129.31 including experimentation with and evaluation of methods of 129.32 relating to American Indian pupils; provision of personal and 129.33 vocational counseling to American Indian pupils; modification of 129.34 curriculum, instructional methods, and administrative procedures 129.35 to meet the needs of American Indian pupils; and establishment 129.36 of cooperative liaisons with nonsectarian nonpublic, community, 130.1 tribal or alternative schools offering curricula which reflect 130.2 American Indian culture. Districts offering programs may make 130.3 contracts for the provision of program components by 130.4 nonsectarian nonpublic, community, tribal or alternative 130.5 schools. These programs may also be provided as components of 130.6 early childhood and family education programs. 130.7 Sec. 139. Minnesota Statutes 1996, section 126.48, 130.8 subdivision 2, is amended to read: 130.9 Subd. 2. [VOLUNTARY ENROLLMENT.] Enrollment in American 130.10 Indian language and culture education programsshallmust be 130.11 voluntary. School districts and participating schoolsshall130.12 must make affirmative efforts to encourage participation. They 130.13 shall encourage parents to visit classes or come to school for a 130.14 conference explaining the nature of the program and provide 130.15 visits by school staff to parents' homes to explain the nature 130.16 of the program. 130.17 Sec. 140. Minnesota Statutes 1996, section 126.48, 130.18 subdivision 3, is amended to read: 130.19 Subd. 3. [ENROLLMENT OF OTHER CHILDREN; SHARED TIME 130.20 ENROLLMENT.] To the extent it is economically feasible, aschool130.21 district or participating school may make provision for the 130.22 voluntary enrollment of non-American Indian children in the 130.23 instructional components of an American Indian language and 130.24 culture education program in order that they may acquire an 130.25 understanding of the cultural heritage of the American Indian 130.26 children for whom that particular program is designed. However, 130.27 in determining eligibility to participate in a program, priority 130.28shallmust be given to American Indian children. American 130.29 Indian children and other children enrolled in an existing 130.30 nonpublic school system may be enrolled on a shared time basis 130.31 in American Indian language and culture education programs. 130.32 Sec. 141. Minnesota Statutes 1996, section 126.48, 130.33 subdivision 4, is amended to read: 130.34 Subd. 4. [LOCATION OF PROGRAMS.] American Indian language 130.35 and culture education programsshallmust be located in 130.36 facilities in which regular classes in a variety of subjects are 131.1 offered on a daily basis. 131.2 Sec. 142. Minnesota Statutes 1996, section 126.48, 131.3 subdivision 5, is amended to read: 131.4 Subd. 5. [ASSIGNMENT OF STUDENTS.]NoA school district or 131.5 participating schoolshallmust not, in providing these programs 131.6 , assign students to schools in a way which will have the effect 131.7 of promoting segregation of students by race, sex, color, or 131.8 national origin. 131.9 Sec. 143. Minnesota Statutes 1996, section 126.49, 131.10 subdivision 1, is amended to read: 131.11 Subdivision 1. [AMERICAN INDIAN LANGUAGE AND CULTURE 131.12 EDUCATION LICENSES.] The board of teachingshallmust grant 131.13 initial and continuing teaching licenses in American Indian 131.14 language and culture education that bear the same duration as 131.15 other initial and continuing licenses. The boardshallmust 131.16 grant licenses to persons who present satisfactory evidence that 131.17 they: 131.18 (a) Possess competence in an American Indian language or 131.19 possess unique qualifications relative to or knowledge and 131.20 understanding of American Indian history and culture; or 131.21 (b) Possess a bachelor's degree or other academic degree 131.22 approved by the board or meet such requirements as to course of 131.23 study and training as the board may prescribe, or possess such 131.24 relevant experience as the board may prescribe. 131.25 This evidence may be presented by affidavits, resolutions, 131.26 or by such other methods as the board may prescribe. 131.27 Individuals may present applications for licensure on their own 131.28 behalf or these applications may be submitted by the 131.29 superintendent or other authorized official of a school 131.30 district, participating school, or an American Indian school. 131.31 Sec. 144. Minnesota Statutes 1996, section 126.49, 131.32 subdivision 5, is amended to read: 131.33 Subd. 5. [PERSONS ELIGIBLE FOR EMPLOYMENT; EXEMPTIONS.] 131.34 Any person licensed under this section shall be eligible for 131.35 employment by a school board or a participating school as a 131.36 teacher in an American Indian language and culture education 132.1 program in which the American Indian language or culture in 132.2 which the person is licensed is taught. A school district or 132.3 participating school may prescribe only those additional 132.4 qualifications for teachers licensed under this section as are 132.5 approved by the board of teaching. Any school board or 132.6 participating school upon request may be exempted from the 132.7 licensure requirements of this section in the hiring of one or 132.8 more American Indian language and culture education teachers for 132.9 any school year in which compliance would, in the opinion of the 132.10 commissionerof children, families, and learning, create a 132.11 hardship in the securing of the teachers. 132.12 Sec. 145. Minnesota Statutes 1996, section 126.49, 132.13 subdivision 6, is amended to read: 132.14 Subd. 6. [PERSONS SERVING UNDER EXEMPTIONS; LICENSURE; 132.15 TENURE.] An American Indian language and culture education 132.16 teacher serving under an exemption as provided in subdivision5132.17 6 shall be granted a license as soon as that teacher achieves 132.18 the qualifications foritthe license. Not more than one year 132.19 of service by an American Indian language and culture education 132.20 teacher under an exemption shall be credited to the teacher for 132.21 the purposes of section 125.12 and not more than two years shall 132.22 be credited for the purposes of section 125.17; and the one or 132.23 two years shall be deemed to precede immediately and be 132.24 consecutive with the year in which a teacher becomes licensed. 132.25 Sec. 146. Minnesota Statutes 1996, section 126.49, 132.26 subdivision 8, is amended to read: 132.27 Subd. 8. [AFFIRMATIVE EFFORTS IN HIRING.] In hiring for 132.28 all positions in these programs, school districts and 132.29 participating schools shall give preference to and make 132.30 affirmative efforts to seek, recruit, and employ persons who 132.31 share the culture of the American Indian children who are 132.32 enrolled in the program. The district or participating school 132.33 shall provide procedures for the involvement of the parent 132.34 advisory committees in designing the procedures for the 132.35 recruitment, screening and selection of applicants, provided132.36that nothing herein. This subdivision shall not be construed to 133.1 limit the school board's authority to hire and discharge 133.2 personnel. 133.3 Sec. 147. Minnesota Statutes 1996, section 126.50, is 133.4 amended to read: 133.5 126.50 [TEACHERS AIDES; COMMUNITY COORDINATORS.] 133.6 In addition to employing American Indian language and 133.7 culture education teachers, each district or participating 133.8 school providing programs pursuant to sections 126.45 to 126.55 133.9 may employ teachers' aides. Teachers' aidesshallmust not be 133.10 employed for the purpose of supplanting American Indian language 133.11 and culture education teachers. 133.12 Any district or participating school which conducts 133.13 American Indian language and culture education programs pursuant 133.14 to sections 126.45 to 126.55shallmust employ one or more full- 133.15 time or part-time community coordinators if there are 100 or 133.16 more students enrolled in the program. Community coordinators 133.17 shall promote communication understanding, and cooperation 133.18 between the schools and the community and shall visit the homes 133.19 of children who are to be enrolled in an American Indian 133.20 language and culture education program in order to convey 133.21 information about the program. 133.22 Sec. 148. Minnesota Statutes 1996, section 126.501, is 133.23 amended to read: 133.24 126.501 [RECRUITING AND RETAINING INDIAN TEACHERS.] 133.25 This section applies to aschoolboard of aschooldistrict 133.26 in which there are at least ten American Indian children 133.27 enrolled. Theschoolboardshallmust actively recruit teacher 133.28 applicants who are American Indian from the time it is 133.29 reasonably expected that a position will become available until 133.30 the position is filled or September 1, whichever is earlier. 133.31 Notwithstanding section 125.12, subdivision 4, 6a, or 6b, 133.32 125.17, subdivisions 3 and 11, any other law to the contrary, or 133.33 any provision of a contract entered into after May 7, 1988, to 133.34 the contrary, when placing a teacher on unrequested leave of 133.35 absence, the board may retain a probationary teacher or a 133.36 teacher with less seniority in order to retain an American 134.1 Indian teacher. 134.2 Sec. 149. Minnesota Statutes 1997 Supplement, section 134.3 126.51, subdivision 1, is amended to read: 134.4 Subdivision 1. [PARENT COMMITTEE.] School boards and 134.5 American Indian schoolsshallmust provide for the maximum 134.6 involvement of parents of children enrolled in education 134.7 programs, including language and culture education programs, 134.8 programs for elementary and secondary grades, special education 134.9 programs, and support services. Accordingly, theschoolboard 134.10 of a school district in which there are ten or more American 134.11 Indian children enrolled and each American Indian schoolshall134.12 must establish a parent committee. If a committee whose 134.13 membership consists of a majority of parents of American Indian 134.14 children has been or is established according to federal, 134.15 tribal, or other state law, that committee may serve as the 134.16 committee required by this section andshall beis subject to, 134.17 at least, the requirements of this subdivision and subdivision 134.18 1a. 134.19 The parent committeeshallmust develop its recommendations 134.20 in consultation with the curriculum advisory committee required 134.21 by section 123.972, subdivision 3. This committeeshallmust 134.22 afford parents the necessary information and the opportunity 134.23 effectively to express their views concerning all aspects of 134.24 American Indian education and the educational needs of the 134.25 American Indian children enrolled in the school or program. The 134.26 committeeshallmust also address the need for adult education 134.27 programs for American Indian people in the community. The 134.28schoolboard or American Indian schoolshallmust ensure that 134.29 programs are planned, operated, and evaluated with the 134.30 involvement of and in consultation with parents of children 134.31 served by the programs. 134.32 Sec. 150. Minnesota Statutes 1996, section 126.51, 134.33 subdivision 1a, is amended to read: 134.34 Subd. 1a. [RESOLUTION OF CONCURRENCE.]Each year byPrior 134.35 to December 1, theschoolboard or American Indian schoolshall134.36 must submit to the departmentof children, families, and135.1learninga copy of a resolution adopted by the parent 135.2 committee. The copy must be signed by the chair of the 135.3 committee and must state whether the committee concurs with the 135.4 educational programs for American Indian children offered by the 135.5 school board or American Indian school. If the committee does 135.6 not concur with the educational programs, the reasons for 135.7 nonconcurrence and recommendations shall be submitted with the 135.8 resolution. By resolution, theschoolboardshallmust respond, 135.9 in cases of nonconcurrence, to each recommendation made by the 135.10 committee and state its reasons for not implementing the 135.11 recommendations. 135.12 Sec. 151. Minnesota Statutes 1996, section 126.51, 135.13 subdivision 2, is amended to read: 135.14 Subd. 2. [MEMBERSHIP.] The committeeshallmust be 135.15 composed of parents of children eligible to be enrolled in 135.16 American Indian education programs; secondary students eligible 135.17 to be served; American Indian language and culture education 135.18 teachers and aides; American Indian teachers; counselors; adult 135.19 American Indian people enrolled in educational programs; and 135.20 representatives from community groups. A majority of each 135.21 committeeshallmust be parents of children enrolled or eligible 135.22 to be enrolled in the programs. The number of parents of 135.23 American Indian and non-American Indian children shall reflect 135.24 approximately the proportion of children of those groups 135.25 enrolled in the programs. 135.26 Sec. 152. Minnesota Statutes 1996, section 126.52, 135.27 subdivision 5, is amended to read: 135.28 Subd. 5. [COMMUNITY INVOLVEMENT.] The state boardshall135.29 must provide for the maximum involvement of the state committees 135.30 on American Indian education, parents of American Indian 135.31 children, secondary students eligible to be served, American 135.32 Indian language and culture education teachers, American Indian 135.33 teachers, teachers' aides, representatives of community groups, 135.34 and persons knowledgeable in the field of American Indian 135.35 education, in the formulation of policy and procedures relating 135.36 to the administration of sections 126.45 to 126.55. 136.1 Sec. 153. Minnesota Statutes 1996, section 126.52, 136.2 subdivision 8, is amended to read: 136.3 Subd. 8. [TECHNICAL ASSISTANCE.] The commissioner shall 136.4 provide technical assistance toschooldistricts, schools and 136.5 post-secondary institutions for preservice and in-service 136.6 training for American Indian education teachers and teacher's 136.7 aides, teaching methods, curriculum development, testing and 136.8 testing mechanisms, and the development of materials for 136.9 American Indian education programs. 136.10 Sec. 154. Minnesota Statutes 1996, section 126.531, 136.11 subdivision 1, is amended to read: 136.12 Subdivision 1. [ESTABLISHMENT.] The state board of 136.13 education shall create one or more American Indian education 136.14 committees. Membersshallmust include representatives of 136.15 tribal bodies, community groups, parents of children eligible to 136.16 be served by the programs, American Indian administrators and 136.17 teachers, persons experienced in the training of teachers for 136.18 American Indian education programs, persons involved in programs 136.19 for American Indian children in American Indian schools, and 136.20 persons knowledgeable in the field of American Indian 136.21 education. Members shall be appointed so as to be 136.22 representative of significant segments of the population of 136.23 American Indians. 136.24 Sec. 155. Minnesota Statutes 1997 Supplement, section 136.25 126.531, subdivision 3, is amended to read: 136.26 Subd. 3. [EXPENSES.] Each committeeshallmust be 136.27 reimbursed for expenses according to section 15.059, subdivision 136.28 6. The state boardshallmust determine the membership terms 136.29 and the duration of each committee, which expire no later than 136.30 June 30, 2001. 136.31 Sec. 156. Minnesota Statutes 1996, section 126.54, 136.32 subdivision 1, is amended to read: 136.33 Subdivision 1. [GRANTS; PROCEDURES.] Each fiscal year the 136.34 state board of educationshallmust make grants to no fewer than 136.35 six American Indian language and culture education programs. At 136.36 least three programsshallmust be in urban areas and at least 137.1 threeshallmust be on or near reservations. The board of a 137.2 local district, a participating school or a group of boards may 137.3 develop a proposal for grants in support of American Indian 137.4 language and culture education programs. Proposals may provide 137.5 for contracts for the provision of program components by 137.6 nonsectarian nonpublic, community, tribal, or alternative 137.7 schools. The commissioner shall prescribe the form and manner 137.8 of application for grants, and no grant shall be made for a 137.9 proposal not complying with the requirements of sections 126.45 137.10 to 126.55. The state boardshallmust submit all proposals to 137.11 the state advisory task force on American Indian language and 137.12 culture education programs for its recommendations concerning 137.13 approval, modification, or disapproval and the amounts of grants 137.14 to approved programs. 137.15 Sec. 157. Minnesota Statutes 1996, section 126.54, 137.16 subdivision 2, is amended to read: 137.17 Subd. 2. [PLANS.] Eachschooldistrict or participating 137.18 school submitting a proposal under subdivision 1shallmust 137.19 develop and submit with the proposal a plan which shall: 137.20 (a) Identify the measures to be used to meet the 137.21 requirements of sections 126.45 to 126.55; 137.22 (b) Identify the activities, methods and programs to meet 137.23 the identified educational needs of the children to be enrolled 137.24 in the program; 137.25 (c) Describe how district goals and objectives as well as 137.26 the objectives of sections 126.45 to 126.55 are to be achieved; 137.27 (d) Demonstrate that required and elective courses as 137.28 structured do not have a discriminatory effect within the 137.29 meaning of section 126.48, subdivision 5; 137.30 (e) Describe how each school program will be organized, 137.31 staffed, coordinated, and monitored; and 137.32 (f) Project expenditures for programs under sections 126.45 137.33 to 126.55. 137.34 Sec. 158. Minnesota Statutes 1996, section 126.54, 137.35 subdivision 3, is amended to read: 137.36 Subd. 3. [ADDITIONAL REQUIREMENTS.] Eachschooldistrict 138.1 receiving a grant under this sectionshallmust each year 138.2 conduct a count of American Indian children in the schools of 138.3 the district; test for achievement; identify the extent of other 138.4 educational needs of the children to be enrolled in the American 138.5 Indian language and culture education program; and classify the 138.6 American Indian children by grade, level of educational 138.7 attainment, age and achievement. Participating schoolsshall138.8 must maintain records concerning the needs and achievements of 138.9 American Indian children served. 138.10 Sec. 159. Minnesota Statutes 1996, section 126.54, 138.11 subdivision 4, is amended to read: 138.12 Subd. 4. [NONDISCRIMINATION; TESTING.] In accordance with 138.13 recognized professional standards, all testing and evaluation 138.14 materials and procedures utilized for the identification, 138.15 testing, assessment and classification of American Indian 138.16 childrenshallmust be selected and administered so as not to be 138.17 racially or culturally discriminatory andshallmust be valid 138.18 for the purpose of identifying, testing, assessing, and 138.19 classifying American Indian children. 138.20 Sec. 160. Minnesota Statutes 1996, section 126.54, 138.21 subdivision 5, is amended to read: 138.22 Subd. 5. [RECORDS.] Participating schools andschool138.23 districtsshallkeep records and afford access to them as the 138.24 commissioner finds necessary to ensure that American Indian 138.25 language and culture education programs are implemented in 138.26 conformity with sections 126.45 to 126.55. Each school district 138.27 or participating schoolshallmust keep accurate, detailed, and 138.28 separate revenue and expenditure accounts for pilot American 138.29 Indian language and culture education programs funded under this 138.30 section. 138.31 Sec. 161. Minnesota Statutes 1996, section 126.54, 138.32 subdivision 6, is amended to read: 138.33 Subd. 6. [MONEY FROM OTHER SOURCES.] Aschooldistrict or 138.34 participating school providing American Indian language and 138.35 culture education programs shall be eligible to receive moneys 138.36 for these programs from other government agencies and from 139.1 private sources when the moneys are available. 139.2 Sec. 162. Minnesota Statutes 1996, section 126.56, 139.3 subdivision 6, is amended to read: 139.4 Subd. 6. [INFORMATION.] The higher education services 139.5 office, in cooperation with the academic excellence foundation, 139.6shallmust assemble and distribute information about 139.7 scholarships and eligible programs. 139.8 Sec. 163. [REPEALER.] 139.9 (a) Minnesota Statutes 1996, sections 124C.55; 124C.56; 139.10 124C.57; and 124C.58, are repealed. 139.11 (b) Minnesota Statutes 1996, section 124.312, as amended by 139.12 Laws 1997, First Special Session chapter 4, article 2, sections 139.13 13 and 14; Minnesota Statutes 1997 Supplement, sections 124.313; 139.14 and 124.314, are repealed effective for revenue for fiscal year 139.15 1999. 139.16 Sec. 164. [INSTRUCTION TO REVISOR.] 139.17 The revisor of statutes shall renumber each section of 139.18 Minnesota Statutes listed in column A with the number listed in 139.19 column B. The revisor shall also make necessary cross-reference 139.20 changes consistent with the renumbering. 139.21 Column A Column B 139.22 120.03, subd. 1 120B.02, subd. 1 139.23 subd. 5 subd. 2 139.24 120.17, subd. 1 120B.03, subd. 1 139.25 subd. 1b subd. 2 139.26 subd. 2 subd. 3 139.27 subd. 3 subd. 4 139.28 subd. 3a subd. 5 139.29 subd. 3b subd. 6 139.30 subd. 3d subd. 7 139.31 subd. 4 subd. 8 139.32 subd. 4a subd. 9 139.33 subd. 5 subd. 10 139.34 subd. 5a subd. 11 139.35 subd. 6 subd. 12 139.36 subd. 7 subd. 13 140.1 subd. 7a subd. 14 140.2 subd. 8a subd. 15 140.3 subd. 9 subd. 16 140.4 subd. 10 subd. 17 140.5 subd. 11 subd. 18 140.6 subd. 15 subd. 19 140.7 subd. 16 subd. 20 140.8 subd. 18 subd. 21 140.9 subd. 19 subd. 22 140.10 120.1701, subd. 1 120B.04, subd. 1 140.11 subd. 2 subd. 2 140.12 subd. 3 subd. 3 140.13 subd. 4 subd. 4 140.14 subd. 5 subd. 5 140.15 subd. 6 subd. 6 140.16 subd. 7 subd. 7 140.17 subd. 8 subd. 8 140.18 subd. 8a subd. 9 140.19 subd. 9 subd. 10 140.20 subd. 10 subd. 11 140.21 subd. 11 subd. 12 140.22 subd. 12 subd. 13 140.23 subd. 13 subd. 14 140.24 subd. 14 subd. 15 140.25 subd. 15 subd. 16 140.26 subd. 16 subd. 17 140.27 subd. 17 subd. 18 140.28 subd. 18 subd. 19 140.29 subd. 19 subd. 20 140.30 subd. 20 subd. 21 140.31 subd. 21 subd. 22 140.32 subd. 22 subd. 23 140.33 120.172 120B.08 140.34 120.173 120B.09 140.35 120.181 120B.10 140.36 120.1811 120B.11 141.1 120.182 120B.12 141.2 120.183 120B.13 141.3 120.185 120B.14 141.4 126.237 120B.15 141.5 124.32, subd. 2b 120B.20, subd. 1 141.6 subd. 4 subd. 2 141.7 subd. 6 subd. 3 141.8 subd. 7 subd. 4 141.9 subd. 8 subd. 5 141.10 subd. 10 subd. 6 141.11 subd. 12 subd. 7 141.12 124.3201 120B.21 141.13 124.321 120B.22 141.14 124.322, subd. 1 120B.23, subd. 1 141.15 subd. 1a subd. 2 141.16 subd. 5 subd. 3 141.17 124.323 120B.24 141.18 124.90 120B.26 141.19 120.187 120B.30 141.20 120.188 120B.31 141.21 120.189 120B.32 141.22 120.190 120B.33 141.23 126.261 120B.40 141.24 126.262 120B.41 141.25 126.264 120B.42 141.26 126.265 120B.43 141.27 126.266 120B.44 141.28 126.267 120B.45 141.29 126.269 120B.46 141.30 124.273, subd. 1c 120B.47, subd. 1 141.31 subd. 1d subd. 2 141.32 subd. 1e subd. 3 141.33 subd. 1f subd. 4 141.34 subd. 1g subd. 5 141.35 subd. 3 subd. 6 141.36 subd. 4 subd. 7 142.1 subd. 5 subd. 8 142.2 subd. 6 subd. 9 142.3 subd. 7 subd. 10 142.4 124.3111 120B.50 142.5 124.311 120B.51 142.6 126.22, subd. 1 120B.57, subd. 1 142.7 subd. 2 subd. 2 142.8 subd. 3 subd. 3 142.9 subd. 3a subd. 4 142.10 subd. 4 subd. 5 142.11 subd. 5 subd. 6 142.12 subd. 6 subd. 7 142.13 subd. 7 subd. 8 142.14 subd. 8 subd. 9 142.15 subd. 9 subd. 10 142.16 126.23 120B.58 142.17 124.225 120B.59 142.18 126.235 120B.61 142.19 124.573, subd. 1 120B.66, subd. 1 142.20 subd. 2 subd. 2 142.21 subd. 2b subd. 3 142.22 subd. 2e subd. 4 142.23 subd. 2f subd. 5 142.24 subd. 3 subd. 6 142.25 subd. 3a subd. 7 142.26 subd. 5a subd. 8 142.27 124.574, subd. 1 120B.67, subd. 1 142.28 subd. 2c subd. 2 142.29 subd. 2d subd. 3 142.30 subd. 2e subd. 4 142.31 subd. 2f subd. 5 142.32 subd. 2g subd. 6 142.33 subd. 2h subd. 7 142.34 subd. 5 subd. 8 142.35 subd. 6 subd. 9 142.36 subd. 7 subd. 10 143.1 subd. 9 subd. 11 143.2 126.45 120B.70 143.3 126.46 120B.71 143.4 126.47 120B.72 143.5 126.48 120B.73 143.6 126.49, subd. 1 120B.74, subd. 1 143.7 subd. 2 subd. 2 143.8 subd. 2a subd. 3 143.9 subd. 3 subd. 4 143.10 subd. 4 subd. 5 143.11 subd. 5 subd. 6 143.12 subd. 6 subd. 7 143.13 subd. 7 subd. 8 143.14 subd. 8 subd. 9 143.15 126.50 120B.75 143.16 126.501 120B.76 143.17 126.51, subd. 1 120B.77, subd. 1 143.18 subd. 1a subd. 2 143.19 subd. 2 subd. 3 143.20 subd. 4 subd. 4 143.21 126.52, subd. 5 120B.78, subd. 1 143.22 subd. 8 subd. 2 143.23 subd. 9 subd. 3 143.24 126.531 120B.79 143.25 126.54 120B.80 143.26 126.55 120B.81 143.27 124.86 120B.82 143.28 124.48, subd. 1 120B.83, subd. 1 143.29 subd. 3 subd. 2 143.30 124.481 120B.84 143.31 126.43 120B.86 143.32 124.315 120B.88 143.33 124.227 120B.89 143.34 120.064, subd. 1 129B.90, subd. 1 143.35 subd. 2 subd. 2 143.36 subd. 3 subd. 3 144.1 subd. 4 subd. 4 144.2 subd. 4a subd. 5 144.3 subd. 5 subd. 6 144.4 subd. 7 subd. 7 144.5 subd. 8 subd. 8 144.6 subd. 9 subd. 9 144.7 subd. 10 subd. 10 144.8 subd. 11 subd. 11 144.9 subd. 12 subd. 12 144.10 subd. 13 subd. 13 144.11 subd. 14 subd. 14 144.12 subd. 14a subd. 15 144.13 subd. 15 subd. 16 144.14 subd. 16 subd. 17 144.15 subd. 17 subd. 18 144.16 subd. 18 subd. 19 144.17 subd. 19 subd. 20 144.18 subd. 20 subd. 21 144.19 subd. 20a subd. 22 144.20 subd. 21 subd. 23 144.21 subd. 22 subd. 24 144.22 subd. 23 subd. 25 144.23 subd. 24 subd. 26 144.24 124.248, subd. 1 120B.91, subd. 1 144.25 subd. 1a subd. 2 144.26 subd. 2 subd. 3 144.27 subd. 2a subd. 4 144.28 subd. 3 subd. 5 144.29 subd. 4 subd. 6 144.30 subd. 5 subd. 7 144.31 subd. 6 subd. 8 144.32 126.239 120B.92 144.33 123.3513 120B.93 144.34 123.3514, subd. 1 120B.94, subd. 1 144.35 subd. 2 subd. 2 144.36 subd. 3 subd. 3 145.1 subd. 3a subd. 4 145.2 subd. 4 subd. 5 145.3 subd. 4a subd. 6 145.4 subd. 4b subd. 7 145.5 subd. 4c subd. 8 145.6 subd. 4d subd. 9 145.7 subd. 4e subd. 10 145.8 subd. 5 subd. 11 145.9 subd. 6 subd. 12 145.10 subd. 6a subd. 13 145.11 subd. 6b subd. 14 145.12 subd. 6c subd. 15 145.13 subd. 6d subd. 16 145.14 subd. 6e subd. 17 145.15 subd. 7 subd. 18 145.16 subd. 7a subd. 19 145.17 subd. 7b subd. 20 145.18 subd. 8 subd. 21 145.19 subd. 9 subd. 22 145.20 subd. 10 subd. 23 145.21 subd. 11 subd. 24 145.22 subd. 11a subd. 25 145.23 120.80 120B.95 145.24 126.56, subd. 1 120B.96, subd. 1 145.25 subd. 2 subd. 2 145.26 subd. 3 subd. 3 145.27 subd. 4 subd. 4 145.28 subd. 4a subd. 5 145.29 subd. 5 subd. 6 145.30 subd. 6 subd. 7 145.31 subd. 7 subd. 8 145.32 ARTICLE 3 145.33 CHAPTER 120C 145.34 COMMUNITY EDUCATION 145.35 Section 1. [120C.01] [DEFINITIONS.] 145.36 For the purposes of this chapter, the words defined in 146.1 section 120.02 have the same meaning. 146.2 Sec. 2. Minnesota Statutes 1996, section 121.201, is 146.3 amended to read: 146.4 121.201 [HEARING IMPAIRED EDUCATIONAL SUPPORT SERVICES.] 146.5 Subdivision 1. [RESPONSIBILITY OF COMMISSIONER.] The 146.6 commissioner shall coordinate and may pay for support services 146.7 for hearing impaired persons to assure access to educational 146.8 opportunities. Services may be provided to adult students who 146.9 are hearing impaired and(a)(1) have been denied access to 146.10 educational opportunities because of the lack of support 146.11 services or(b)(2) are presently enrolled or(c)(3) are 146.12 contemplating enrollment in an educational program and would 146.13 benefit from support services. The commissioner shall also be 146.14 responsible for conducting in-service training for public and 146.15 private agencies regarding the needs of hearing impaired persons 146.16 in the adult education system. 146.17 Subd. 2. [SUPPORT SERVICES.] The state board may pay 146.18 school districts or public or private community agencies for the 146.19 following support services: 146.20(a)(1) interpreter services to provide translation for an 146.21 individual or a group of students; or 146.22(b)(2) notetaker services to convert spoken language to 146.23 written language when the student must maintain visual contact 146.24 with other persons such as an interpreter or instructor. 146.25 Subd. 3. [PROGRAMS INCLUDED.] Support services may be 146.26 provided for: 146.27(a)(1) local school district adult education programs; 146.28(b)(2) adult technical college programs; and 146.29(c)(3) avocational education programs sponsored by public 146.30 or private community agencies. 146.31 Sec. 3. Minnesota Statutes 1996, section 121.203, 146.32 subdivision 1, is amended to read: 146.33 Subdivision 1. [AIDS PROGRAM.] The commissioner of 146.34 children, families, and learning, in consultation with the 146.35 commissioner of health, shall assist districts in developing and 146.36 implementing a program to prevent and reduce the risk of 147.1 acquired immune deficiency syndrome. Each districtshallmust 147.2 have a program that includes at least: 147.3 (1) planning materials, guidelines, and other technically 147.4 accurate and updated information; 147.5 (2) a comprehensive, technically accurate, and updated 147.6 curriculum; 147.7 (3) cooperation and coordination among districts and SCs; 147.8 (4) a targeting of adolescents, especially those who may be 147.9 at high risk of contracting AIDS, for prevention efforts; 147.10 (5) involvement of parents and other community members; 147.11 (6) in-service training for appropriate district staff and 147.12 school board members; 147.13 (7) collaboration with state agencies and organizations 147.14 having an AIDS prevention or AIDS risk reduction program; 147.15 (8) collaboration with local community health services, 147.16 agencies and organizations having an AIDS prevention or AIDS 147.17 risk reduction program; and 147.18 (9) participation by state and local student organizations. 147.19 The department may provide assistance at a neutral site to 147.20 a nonpublic school participating in a district's program. 147.21 District programs must not conflict with the health and wellness 147.22 curriculum developed under Laws 1987, chapter 398, article 5, 147.23 section 2, subdivision 7. 147.24 If a district fails to develop and implement a program to 147.25 prevent and reduce the risk of AIDS, the departmentshallmust 147.26 assist the SC in the region serving that district to develop or 147.27 implement the program. 147.28 Sec. 4. Minnesota Statutes 1997 Supplement, section 147.29 121.615, subdivision 2, is amended to read: 147.30 Subd. 2. [CREATION OF FOUNDATION.] There is created the 147.31 Minnesota school-to-work student organization foundation. The 147.32 purpose of the foundationshall beis to promote vocational 147.33 student organizations and applied leadership opportunities in 147.34 Minnesota public and nonpublic schools through public-private 147.35 partnerships. The foundationshall beis a nonprofit 147.36 organization. The board of directors of the foundation and 148.1 activities of the foundation are under the direction of the 148.2 state board of education. 148.3 Sec. 5. Minnesota Statutes 1997 Supplement, section 148.4 121.615, subdivision 3, is amended to read: 148.5 Subd. 3. [BOARD OF DIRECTORS.] The board of directors of 148.6 the school-to-work student organization foundationshall consist148.7 consists of: 148.8 (1) seven members appointed by the board of directors of 148.9 the school-to-work student organizations and chosen so that each 148.10 represents one of the following career areas: agriculture, 148.11 family and consumer sciences, service occupations, health 148.12 occupations, marketing, business, and technical/industrial; 148.13 (2) seven members from business, industry, and labor 148.14 appointed by the governor to staggered terms and chosen so that 148.15 each represents one of the following career areas: agriculture, 148.16 family and consumer sciences, service occupations, health 148.17 occupations, marketing, business, and technical/industrial; 148.18 (3) five students or alumni of school-to-work student 148.19 organizations representing diverse career areas, three from 148.20 secondary student organizations, and two from post-secondary 148.21 student organizations. The students or alumni shall be 148.22 appointed by the criteria and process agreed upon by the 148.23 executive directors of the student-to-work organizations; and 148.24 (4) four members from education appointed by the governor 148.25 to staggered terms and chosen so that each represents one of the 148.26 following groups: school district level administrators, 148.27 secondary school administrators, middle school administrators, 148.28 and post-secondary administrators. 148.29 Executive directors of vocational education student 148.30 organizations are ex officio, nonvoting members of the board. 148.31 Sec. 6. Minnesota Statutes 1997 Supplement, section 148.32 121.615, subdivision 9, is amended to read: 148.33 Subd. 9. [PRIVATE FUNDING.] The foundationshallmust seek 148.34 private resources to supplement the available public money. 148.35 Individuals, businesses, and other organizations may contribute 148.36 to the foundation in any manner specified by the board of 149.1 directors. All money received shall be administered by the 149.2 board of directors. 149.3 Sec. 7. Minnesota Statutes 1997 Supplement, section 149.4 121.615, subdivision 10, is amended to read: 149.5 Subd. 10. [REPORT.] The board of directors of the 149.6 foundationshallmust submit an annual report on the progress of 149.7 its activities to the state board of education and to the board 149.8 of trustees of the Minnesota state colleges and universities. 149.9 The annual report shall contain a financial report for the 149.10 preceding year. The foundation shall submit a biennium report 149.11 to the legislature before February 15, in the odd-numbered year. 149.12 Sec. 8. Minnesota Statutes 1996, section 121.615, 149.13 subdivision 11, is amended to read: 149.14 Subd. 11. [APPROPRIATION.]There is annually appropriated149.15to the foundationAll the amounts received by the foundation 149.16 pursuant to this section are annually appropriated to the 149.17 foundation. 149.18 Sec. 9. Minnesota Statutes 1996, section 121.704, is 149.19 amended to read: 149.20 121.704 [YOUTH WORKS PROGRAM.] 149.21 The youth works program is established to fulfill the 149.22 purposes of section 121.701. The youth works programshallmust 149.23 supplement existing programs and services. The programshall149.24 must not displace existing programs and services, existing 149.25 funding of programs or services, or existing employment and 149.26 employment opportunities. No eligible organization may 149.27 terminate, layoff, or reduce the hours of work of an employee to 149.28 place or hire a program participant. No eligible organization 149.29 may place or hire an individual for a project if an employee is 149.30 on layoff from the same or a substantially equivalent position. 149.31 Sec. 10. Minnesota Statutes 1996, section 121.705, 149.32 subdivision 2, is amended to read: 149.33 Subd. 2. [GRANT AUTHORITY.] The commission and, beginning 149.34 January 1, 1997, the councilshallmust use any state 149.35 appropriation and any available federal funds, including any 149.36 grant received under federal law, to award grants to establish 150.1 programs for youth works meeting the requirements of section 150.2 121.706. At least one grant each must be available for a 150.3 metropolitan proposal, a rural proposal, and a statewide 150.4 proposal. If a portion of the suburban metropolitan area is not 150.5 included in the metropolitan grant proposal, the statewide grant 150.6 proposal must incorporate at least one suburban metropolitan 150.7 area. In awarding grants, the commission and, beginning January 150.8 1, 1997, the council may select at least one residential 150.9 proposal and one nonresidential proposal, provided the proposals 150.10 meet or exceed the criteria in section 121.706. 150.11 Sec. 11. Minnesota Statutes 1996, section 121.706, is 150.12 amended to read: 150.13 121.706 [GRANT APPLICATIONS.] 150.14 Subdivision 1. [APPLICATIONS REQUIRED.] An organization 150.15 seeking federal or state grant money under sections 121.704 to 150.16 121.709 shall prepare and submit to the commission and, 150.17 beginning January 1, 1997, the council an application that meets 150.18 the requirements of this section. The commission and, beginning 150.19 January 1, 1997, the councilshallmust develop, and the 150.20 applying organizationsshallmust comply with, the form and 150.21 manner of the application. 150.22 Subd. 2. [APPLICATION CONTENT.] An applicant on its 150.23 applicationshallmust: 150.24 (1) propose a program to provide participants the 150.25 opportunity to perform community service to meet specific unmet 150.26 community needs, and participate in classroom, work-based, and 150.27 service-learning; 150.28 (2) assess the community's unmet educational, human, 150.29 environmental, and public safety needs, the resources and 150.30 programs available for meeting those needs, and how young people 150.31 participated in assessing community needs; 150.32 (3) describe the educational component of the program, 150.33 including classroom hours per week, classroom time for 150.34 participants to reflect on the program experience, and 150.35 anticipated academic outcomes related to the service experience; 150.36 (4) describe the work to be performed, the ratio of youth 151.1 participants to crew leaders and mentors, and the expectations 151.2 and qualifications for crew leaders and mentors; 151.3 (5) describe local funds or resources available to meet the 151.4 match requirements of section 121.709; 151.5 (6) describe any funds available for the program from 151.6 sources other than the requested grant; 151.7 (7) describe any agreements with local businesses to 151.8 provide participants with work-learning opportunities and 151.9 mentors; 151.10 (8) describe any agreement with local post-secondary 151.11 educational institutions to offer participants course credits 151.12 for their community service-learning experience; 151.13 (9) describe any agreement with a local high school or an 151.14 alternative learning center to provide remedial education, 151.15 credit for community service work and work-based learning, or 151.16 graduate equivalency degrees; 151.17 (10) describe any pay for service or other program delivery 151.18 mechanism that will provide reimbursement for benefits conferred 151.19 or recover costs of services participants perform; 151.20 (11) describe how local resources will be used to provide 151.21 support and assistance for participants to encourage them to 151.22 continue with the program, fulfill the terms of the contract, 151.23 and remain eligible for any postservice benefit; 151.24 (12) describe the arbitration mechanism for dispute 151.25 resolution required under section 121.707, subdivision 2; 151.26 (13) describe involvement of community leaders in 151.27 developing broad-based support for the program; 151.28 (14) describe the consultation and sign-off process to be 151.29 used with any local labor organization representing employees in 151.30 the area engaged in work similar to that proposed for the 151.31 program to ensure that no current employees or available 151.32 employment positions will be displaced by program participants; 151.33 (15) certify to the commission and, beginning January 1, 151.34 1997, the council, and to any certified bargaining 151.35 representatives representing employees of the applying 151.36 organization that the project will not decrease employment 152.1 opportunities that would be available without the project; will 152.2 not displace current employees including any partial 152.3 displacement in the form of reduced hours of work other than 152.4 overtime, wages, employment benefits, or regular seasonal work; 152.5 will not impair existing labor agreements; and will not result 152.6 in the substitution of project funding for preexisting funds or 152.7 sources of funds for ongoing work; 152.8 (16) describe the length of the required service period, 152.9 which may not be less than six months or more than two years, a 152.10 method to incorporate a participant's readiness to advance or 152.11 need for postservice financial assistance into individual 152.12 service requirements, and any opportunity for participating part 152.13 time or in another program; 152.14 (17) describe a program evaluation plan that contains 152.15 cost-effectiveness measures, measures of participant success 152.16 including educational accomplishments, job placements, community 152.17 contributions, and ongoing volunteer activities, outcome 152.18 measures based on a preprogram and postprogram survey of 152.19 community rates of arrest, incarceration, teenage pregnancy, and 152.20 other indicators of youth in trouble, and a list of local 152.21 resources dedicated to reducing these rates; 152.22 (18) describe a three-year financial plan for maintaining 152.23 the program; 152.24 (19) describe the role of local youth in developing all 152.25 aspects of the grant proposal; and 152.26 (20) describe the process by which the local private 152.27 industry council participated in, and reviewed the grant 152.28 application. 152.29 Sec. 12. Minnesota Statutes 1996, section 121.707, 152.30 subdivision 3, is amended to read: 152.31 Subd. 3. [POSTSERVICE BENEFIT.] (a) Each eligible 152.32 organizationshallmust agree to provide to every participant 152.33 who fulfills the terms of a contract under section 121.707, 152.34 subdivision 2, a nontransferable postservice benefit. The 152.35 benefit must be not less than $4,725 per year of full-time 152.36 service or prorated for part-time service or for partial service 153.1 of at least 900 hours. Upon signing a contract under section 153.2 121.707, subdivision 2, each eligible organizationshallmust 153.3 deposit funds to cover the full amount of postservice benefits 153.4 obligated, except for national education awards that are 153.5 deposited in the national service trust fund. Funds encumbered 153.6 in fiscal years 1994 and 1995 for postservice benefitsshall153.7 must be available until the participants for whom the funds were 153.8 encumbered are no longer eligible to draw benefits. 153.9 (b) Nothing in this subdivision prevents a grantee 153.10 organization from using funds from nonfederal or nonstate 153.11 sources to increase the value of postservice benefits above the 153.12 value described in paragraph (a). 153.13 (c) The higher education services officeshallmust 153.14 establish an account for depositing funds for postservice 153.15 benefits received from eligible organizations. If a participant 153.16 does not complete the term of service or, upon successful 153.17 completion of the program, does not use a postservice benefit 153.18 according to subdivision 4 within seven years, the amount of the 153.19 postservice benefitshallmust be refunded to the eligible 153.20 organization or, at the organization's discretion, dedicated to 153.21 another eligible participant. Interest earned on funds 153.22 deposited in the postservice benefit account is appropriated to 153.23 the higher education services office for the costs of 153.24 administering the postservice benefits accounts. 153.25 (d) The stateshallmust provide an additional postservice 153.26 benefit to any participant who successfully completes the 153.27 program. The benefit must be a credit of five points to be 153.28 added to the competitive open rating of a participant who 153.29 obtains a passing grade on a civil service examination under 153.30 chapter 43A. The benefit is available for five years after 153.31 completing the community service. 153.32 Sec. 13. Minnesota Statutes 1996, section 121.707, 153.33 subdivision 4, is amended to read: 153.34 Subd. 4. [USES OF POSTSERVICE BENEFITS.] (a) A postservice 153.35 benefit for a participant provided under subdivision 3, 153.36 paragraph (a), (b), or (c), must be available for seven years 154.1 after completing the program and may only be used for: 154.2 (1) paying a student loan; 154.3 (2) costs of attending an institution of higher education; 154.4 or 154.5 (3) expenses incurred by a student in an approved youth 154.6 apprenticeship program under chapter 126B, or in a registered 154.7 apprenticeship program approved by the department of labor and 154.8 industry. 154.9 Financial assistance provided under this subdivision must be in 154.10 the form of vendor payments whenever possible. Any postservice 154.11 benefits provided by federal funds or vouchers may be used as a 154.12 downpayment on, or closing costs for, purchasing a first home. 154.13 (b) Postservice benefits are to be used to develop skills 154.14 required in occupations where numbers of jobs are likely to 154.15 increase. The commission, in consultation with the workforce 154.16 development council, and beginning January 1, 1997, the 154.17 workforce development council,shallmust determine how the 154.18 benefits may be used in order to best prepare participants with 154.19 skills that build on their service-learning and equip them for 154.20 meaningful employment. 154.21 (c) The postservice benefitshallmust not be included in 154.22 determining financial need when establishing eligibility or 154.23 award amounts for financial assistance programs under chapter 154.24 136A. 154.25 Sec. 14. Minnesota Statutes 1996, section 121.707, 154.26 subdivision 5, is amended to read: 154.27 Subd. 5. [LIVING ALLOWANCE.] (a) A participant in a 154.28 full-time community service program shall receive a monthly 154.29 stipend of not less than $500. An eligible organization may 154.30 provide participants with additional amounts from nonstate 154.31 sources. The amount of the living allowance may be prorated for 154.32 part-time participants. 154.33 (b) Nothing in this subdivision requires an existing 154.34 program to decrease any stipend, salary, or living allowance 154.35 provided to a participant under the program. 154.36 (c) In addition to the living allowance provided under 155.1 paragraph (a), a grantee organization shall provide health and 155.2 child care coverage to each participant in a full-time youth 155.3 works program who does not otherwise have access to health or 155.4 child care coverage. The stateshallmust include the cost of 155.5 group health and child care coverage in the grant to the 155.6 eligible organization. 155.7 Sec. 15. Minnesota Statutes 1996, section 121.707, 155.8 subdivision 6, is amended to read: 155.9 Subd. 6. [PROGRAM TRAINING.] (a) The commission and, 155.10 beginning January 1, 1997, the councilshallmust, within 155.11 available resources, ensure an opportunity for each participant 155.12 to have three weeks of training in a residential setting. If 155.13 offered, each training session must: 155.14 (1) orient each participant in the nature, philosophy, and 155.15 purpose of the program; 155.16 (2) build an ethic of community service through general 155.17 community service training; and 155.18 (3) provide additional training as it determines necessary. 155.19 (b) Each grantee organization shall also train participants 155.20 in skills relevant to the community service opportunity. 155.21 Sec. 16. Minnesota Statutes 1996, section 121.707, 155.22 subdivision 7, is amended to read: 155.23 Subd. 7. [TRAINING AND EDUCATION REQUIREMENTS.] Each 155.24 grantee organizationshallmust assess the educational level of 155.25 each entering participant. Each grantee shall work to enhance 155.26 the educational skills of each participant. The commission and, 155.27 beginning January 1, 1997, the council may coordinate or 155.28 contract with educational institutions or other providers for 155.29 educational services and evaluation. All grantees shall give 155.30 priority to educating and training participants who do not have 155.31 a high school diploma or its equivalent, or who cannot afford 155.32 post-secondary training and education. 155.33 Sec. 17. Minnesota Statutes 1996, section 121.708, is 155.34 amended to read: 155.35 121.708 [PRIORITY.] 155.36 The commission and, beginning January 1, 1997, the council 156.1shallmust give priority to an eligible organization proposing a 156.2 program that meets the goals of sections 121.704 to 121.707, and 156.3 that: 156.4 (1) involves youth in a meaningful way in all stages of the 156.5 program, including assessing community needs, preparing the 156.6 application, and assuming postservice leadership and mentoring 156.7 responsibilities; 156.8 (2) serves a community with significant unmet needs; 156.9 (3) provides an approach that is most likely to reduce 156.10 arrest rates, incarceration rates, teenage pregnancy, and other 156.11 indicators of troubled youth; 156.12 (4) builds linkages with existing, successful programs; and 156.13 (5) can be operational quickly. 156.14 Sec. 18. Minnesota Statutes 1996, section 121.710, 156.15 subdivision 2, is amended to read: 156.16 Subd. 2. [INTERIM REPORT.] The commission and, beginning 156.17 January 1, 1997, the councilshallmust report semiannually to 156.18 the legislature with interim recommendations to change the 156.19 program. 156.20 Sec. 19. Minnesota Statutes 1996, section 121.710, 156.21 subdivision 3, is amended to read: 156.22 Subd. 3. [FINAL REPORT.] The commission and, beginning 156.23 January 1, 1997, the councilshallmust present a final report 156.24 to the legislature by January 1, 1998, summarizing grantee 156.25 evaluations, reporting on individual participants and 156.26 participating grantee organizations, and recommending any 156.27 changes to improve or expand the program. 156.28 Sec. 20. Minnesota Statutes 1997 Supplement, section 156.29 121.831, subdivision 3, is amended to read: 156.30 Subd. 3. [PROGRAM ELIGIBILITY.] A learning readiness 156.31 programshallmust include the following: 156.32 (1) a comprehensive plan to anticipate and meet the needs 156.33 of participating families by coordinating existing social 156.34 services programs and by fostering collaboration among agencies 156.35 or other community-based organizations and programs that provide 156.36 a full range of flexible, family-focused services to families 157.1 with young children; 157.2 (2) a development and learning component to help children 157.3 develop appropriate social, cognitive, and physical skills, and 157.4 emotional well-being; 157.5 (3) health referral services to address children's medical, 157.6 dental, mental health, and nutritional needs; 157.7 (4) a nutrition component to meet children's daily 157.8 nutritional needs; 157.9 (5) parents' involvement in meeting children's educational, 157.10 health, social service, and other needs; 157.11 (6) community outreach to ensure participation by families 157.12 who represent the racial, cultural, and economic diversity of 157.13 the community; 157.14 (7) community-based staff and program resources, including 157.15 interpreters, that reflect the racial and ethnic characteristics 157.16 of the children participating in the program; and 157.17 (8) a literacy component to ensure that the literacy needs 157.18 of parents are addressed through referral to and cooperation 157.19 with adult basic education programs and other adult literacy 157.20 programs. 157.21 Sec. 21. Minnesota Statutes 1996, section 121.831, 157.22 subdivision 6, is amended to read: 157.23 Subd. 6. [COORDINATION WITH OTHER PROVIDERS.] (a) The 157.24 districtshallmust coordinate the learning readiness program 157.25 with existing community-based social services providers and 157.26 foster collaboration among agencies and other community-based 157.27 organizations and programs that provide flexible, family-focused 157.28 services to families with children. The districtshallmust 157.29 actively encourage greater sharing of responsibility and 157.30 accountability among service providers and facilitate children's 157.31 transition between programs. 157.32 (b) To the extent possible, resourcesshallmust follow the 157.33 children so that children receive appropriate services in a 157.34 stable environment and are not moved from one program location 157.35 to another. Where geographically feasible, the districtshall157.36 must actively promote colocating of services for children and 158.1 their families. 158.2 Sec. 22. Minnesota Statutes 1996, section 121.831, 158.3 subdivision 7, is amended to read: 158.4 Subd. 7. [ADVISORY COUNCIL.] Each learning readiness 158.5 programshallmust have an advisory council composed of members 158.6 of existing early education-related boards, parents of 158.7 participating children, child care providers, culturally 158.8 specific service organizations, local resource and referral 158.9 agencies, and representatives of early childhood service 158.10 providers. The councilshallmust advise theschoolboard in 158.11 creating and administering the program andshallmust monitor 158.12 the progress of the program. The councilshallmust ensure that 158.13 children at greatest risk receive appropriate services. If 158.14 theschoolboard is unable to appoint to the advisory council 158.15 members of existing early education-related boards, itshall158.16 must appoint parents of children enrolled in the program who 158.17 represent the racial, cultural, and economic diversity of the 158.18 district and representatives of early childhood service 158.19 providers as representatives to an existing advisory council. 158.20 Sec. 23. Minnesota Statutes 1996, section 121.831, 158.21 subdivision 8, is amended to read: 158.22 Subd. 8. [PRIORITY CHILDREN.] The districtshallmust give 158.23 greatest priority to providing services to eligible children 158.24 identified, through a means such as the early childhood 158.25 screening process, as being developmentally disadvantaged or 158.26 experiencing risk factors that could impede their learning 158.27 readiness. 158.28 Sec. 24. Minnesota Statutes 1996, section 121.831, 158.29 subdivision 9, is amended to read: 158.30 Subd. 9. [CHILD RECORDS.] (a) A record of a child's 158.31 progress and developmentshallmust be maintained in the child's 158.32 cumulative record while enrolled in the learning readiness 158.33 program. The cumulative recordshallmust be used for the 158.34 purpose of planning activities to suit individual needs and 158.35 shall become part of the child's permanent record. The 158.36 cumulative record is private data under chapter 13. Information 159.1 in the record may be disseminated to an educator or service 159.2 provider only to the extent that that person has a need to know 159.3 the information. 159.4 (b) An educator or service provider may transmit 159.5 information in the child's cumulative record to an educator or 159.6 service provider in another program for young children when the 159.7 child applies to enroll in that other program. 159.8 Sec. 25. Minnesota Statutes 1996, section 121.831, 159.9 subdivision 10, is amended to read: 159.10 Subd. 10. [SUPERVISION.] A program provided by aschool159.11 boardshallmust be supervised by a licensed early childhood 159.12 teacher, a certified early childhood educator, or a licensed 159.13 parent educator. A program provided according to a contract 159.14 between aschooldistrict and a nonprofit organization or 159.15 another private organizationshallmust be supervised and 159.16 staffed according to the terms of the contract. 159.17 Sec. 26. Minnesota Statutes 1996, section 121.831, 159.18 subdivision 11, is amended to read: 159.19 Subd. 11. [DISTRICT STANDARDS.] Theschoolboard of the 159.20 districtshallmust develop standards for the learning readiness 159.21 program that reflect the eligibility criteria in subdivision 3. 159.22 The boardshallmust consider including in the standards the 159.23 program characteristics in subdivision 4. 159.24 Sec. 27. Minnesota Statutes 1996, section 121.831, 159.25 subdivision 12, is amended to read: 159.26 Subd. 12. [PROGRAM FEES.] A district may adopt a sliding 159.27 fee schedule based on a family's income butshallmust waive a 159.28 fee for a participant unable to pay. The fees charged must be 159.29 designed to enable eligible children of all socioeconomic levels 159.30 to participate in the program. 159.31 Sec. 28. Minnesota Statutes 1996, section 121.835, 159.32 subdivision 4, is amended to read: 159.33 Subd. 4. [DISTRIBUTION.] The commissionerof children,159.34families, and learningshall give priority to funding existing 159.35 programs. 159.36 To the extent possible, the commissioner shall award grants 160.1 to applicants with experience or demonstrated ability in 160.2 providing comprehensive, multidisciplinary, community-based 160.3 programs with objectives similar to those listed in subdivision 160.4 2, or in providing other human services or social services 160.5 programs using a multidisciplinary, community-based approach. 160.6 Sec. 29. Minnesota Statutes 1996, section 121.835, 160.7 subdivision 5, is amended to read: 160.8 Subd. 5. [APPLICATIONS.] Each grant application must 160.9 propose a five-year program designed to accomplish the purposes 160.10 of this section. The application must be submitted on forms 160.11 provided by the commissionerof children, families, and160.12learning. The grant application must include: 160.13 (1) a description of the specific neighborhoods that will 160.14 be served under the program and the name, address, and a 160.15 description of each community agency or agencies with which the 160.16 applicant intends to contract to provide services using grant 160.17 money; 160.18 (2) a letter of intent from each community agency 160.19 identified in clause (1) that indicates the agency's willingness 160.20 to participate in the program and approval of the proposed 160.21 program structure and components; 160.22 (3) a detailed description of the structure and components 160.23 of the proposed program and an explanation of how each component 160.24 will contribute to accomplishing the purposes of this section; 160.25 (4) a description of how public and private resources, 160.26 including schools, health care facilities, government agencies, 160.27 neighborhood organizations, and other resources, will be 160.28 coordinated and made accessible to families in target 160.29 neighborhoods, including letters of intent from public and 160.30 private agencies indicating their willingness to cooperate with 160.31 the program; 160.32 (5) a detailed, proposed budget that demonstrates the 160.33 ability of the program to accomplish the purposes of this 160.34 section using grant money and other available resources, 160.35 including funding sources other than a grant; and 160.36 (6) a comprehensive evaluation plan for measuring the 161.1 success of the program in meeting the objectives of the overall 161.2 grant program and the individual grant project, including an 161.3 assessment of the impact of the program in terms of at least 161.4 three of the following criteria: 161.5 (i) utilization rates of community services; 161.6 (ii) availability of support systems for families; 161.7 (iii) birth weights of newborn babies; 161.8 (iv) child accident rates; 161.9 (v) utilization rates of prenatal care; 161.10 (vi) reported rates of child abuse; 161.11 (vii) rates of health screening and evaluation; and 161.12 (viii) school readiness of way to grow participants 161.13 compared to nonparticipants. 161.14 Sec. 30. Minnesota Statutes 1996, section 121.835, 161.15 subdivision 7, is amended to read: 161.16 Subd. 7. [ADVISORY COMMITTEES.] The commissionerof161.17children, families, and learningshall establish a program 161.18 advisory committee consisting of persons knowledgeable in child 161.19 development, child health, and family services, who reflect the 161.20 geographic, cultural, racial, and ethnic diversity of the state; 161.21 and representatives of the commissioners of children, families, 161.22 and learning, human services, and health. This program advisory 161.23 committeeshallmust review grant applications, assist in 161.24 distribution of the grants, and monitor progress of the way to 161.25 grow/school readiness program. Each grantee must establish a 161.26 program advisory board of 12 or more members to advise the 161.27 grantee on program design, operation, and evaluation. The board 161.28 must include representatives of local units of government and 161.29 representatives of the project area who reflect the geographic, 161.30 cultural, racial, and ethnic diversity of that community. 161.31 Sec. 31. Minnesota Statutes 1996, section 121.835, 161.32 subdivision 8, is amended to read: 161.33 Subd. 8. [REPORT.] The advisory committeeshallmust 161.34 report to the education committee of the legislature by January 161.35 15, 1993, on the evaluation required in subdivision 5, clause 161.36 (6), and shall make recommendations for establishing successful 162.1 way to grow programs in unserved areas of the state. 162.2 Sec. 32. Minnesota Statutes 1996, section 121.8355, 162.3 subdivision 2, is amended to read: 162.4 Subd. 2. [DUTIES.] (a) Each collaborativeshallmust: 162.5 (1) establish, with assistance from families and service 162.6 providers, clear goals for addressing the health, developmental, 162.7 educational, and family-related needs of children and youth and 162.8 use outcome-based indicators to measure progress toward 162.9 achieving those goals; 162.10 (2) establish a comprehensive planning process that 162.11 involves all sectors of the community, identifies local needs, 162.12 and surveys existing local programs; 162.13 (3) integrate service funding sources so that children and 162.14 their families obtain services from providers best able to 162.15 anticipate and meet their needs; 162.16 (4) coordinate families' services to avoid duplicative and 162.17 overlapping assessment and intake procedures; 162.18 (5) focus primarily on family-centered services; 162.19 (6) encourage parents and volunteers to actively 162.20 participate by using flexible scheduling and actively recruiting 162.21 volunteers; 162.22 (7) provide services in locations that are readily 162.23 accessible to children and families; 162.24 (8) use new or reallocated funds to improve or enhance 162.25 services provided to children and their families; 162.26 (9) identify federal, state, and local institutional 162.27 barriers to coordinating services and suggest ways to remove 162.28 these barriers; and 162.29 (10) design and implement an integrated local service 162.30 delivery system for children and their families that coordinates 162.31 services across agencies and is client centered. The delivery 162.32 system shall provide a continuum of services for children birth 162.33 to age 18, or birth through age 21 for individuals with 162.34 disabilities. The collaborative shall describe the community 162.35 plan for serving pregnant women and children from birth to age 162.36 six. 163.1 (b) The outcome-based indicators developed in paragraph 163.2 (a), clause (1), may include the number of low birth weight 163.3 babies, the infant mortality rate, the number of children who 163.4 are adequately immunized and healthy, require out-of-home 163.5 placement or long-term special education services, and the 163.6 number of minor parents. 163.7 Sec. 33. Minnesota Statutes 1996, section 121.8355, 163.8 subdivision 3, is amended to read: 163.9 Subd. 3. [INTEGRATED LOCAL SERVICE DELIVERY SYSTEM.] A 163.10 collaborativeshallmust design an integrated local service 163.11 delivery system that coordinates funding streams and the 163.12 delivery of services between existing agencies. The integrated 163.13 local service delivery system may: 163.14 (1) improve outreach and early identification of children 163.15 and families in need of services and intervene across service 163.16 systems on behalf of families; 163.17 (2) offer an inclusive service system that supports all 163.18 families within a community; 163.19 (3) coordinate services that eliminate the need to match 163.20 funding streams, provider eligibilities, or clients with 163.21 multiple providers; 163.22 (4) improve access to services by coordinating 163.23 transportation services; 163.24 (5) provide initial outreach to all new mothers and 163.25 periodic family visits to children who are potentially at risk; 163.26 (6) coordinate assessment across systems to determine which 163.27 children and families need coordinated multiagency services and 163.28 supplemental services; 163.29 (7) include multiagency service plans and coordinate 163.30 unitary case management; and 163.31 (8) integrate funding of services. 163.32 Sec. 34. Minnesota Statutes 1996, section 121.8355, 163.33 subdivision 5, is amended to read: 163.34 Subd. 5. [LOCAL PLANS.] The collaborative planshallmust 163.35 describe how the collaborative will carry out the duties and 163.36 implement the integrated local services delivery system required 164.1 under this section. The planshallmust include a list of the 164.2 collaborative participants, a copy of the agreement required 164.3 under subdivision 1, the amount and source of resources each 164.4 participant will contribute to the integrated fund, and methods 164.5 for increasing local participation in the collaborative, 164.6 involving parents and other community members in implementing 164.7 and operating the collaborative, and providing effective 164.8 outreach services to all families with young children in the 164.9 community. The planshallmust also include specific goals that 164.10 the collaborative intends to achieve and methods for objectively 164.11 measuring progress toward meeting the goals. 164.12 Sec. 35. Minnesota Statutes 1996, section 121.8355, 164.13 subdivision 6, is amended to read: 164.14 Subd. 6. [PLAN APPROVAL BY THE CHILDREN'S CABINET.] (a) 164.15 The children's cabinetshallmust approve local plans for 164.16 collaboratives. In approving local plans, the children's 164.17 cabinetshallmust give highest priority to a plan that provides: 164.18 (1) early intervention and family outreach services; 164.19 (2) family visitation services; 164.20 (3) a continuum of services for children from birth to age 164.21 18; 164.22 (4) family preservation services; 164.23 (5) culturally sensitive approaches for delivering services 164.24 and utilizing culturally specific organizations; 164.25 (6) clearly defined outcomes and valid methods of 164.26 assessment; 164.27 (7) effective service coordination; 164.28 (8) participation by the maximum number of jurisdictions 164.29 and local, county, and state funding sources; 164.30 (9) integrated community service providers and local 164.31 resources; 164.32 (10) integrated transportation services; 164.33 (11) integrated housing services; and 164.34 (12) coordinated services that include a children's mental 164.35 health collaborative authorized by law. 164.36 (b) The children's cabinetshallmust ensure that the 165.1 collaboratives established under this section do not conflict 165.2 with any state or federal policy or program and do not 165.3 negatively impact the state budget. 165.4 Sec. 36. Minnesota Statutes 1996, section 121.88, 165.5 subdivision 2, is amended to read: 165.6 Subd. 2. [ADVISORY COUNCIL.] Each boardshallmust provide 165.7 for an advisory council to consist of members who represent: 165.8 various service organizations; churches; public and nonpublic 165.9 schools; local government including elected officials; public 165.10 and private nonprofit agencies serving youth and families; 165.11 parents; youth; park, recreation or forestry services of 165.12 municipal or local government units located in whole or in part 165.13 within the boundaries of the school district; and any other 165.14 groups participating in the community education program in the 165.15 school district. 165.16 Sec. 37. Minnesota Statutes 1996, section 121.88, 165.17 subdivision 3, is amended to read: 165.18 Subd. 3. [COOPERATION.] The councilshallmust function in 165.19 cooperation with the community education director in an advisory 165.20 capacity in the interest of promoting the goals and objectives 165.21 of sections 121.85 to 121.88. 165.22 Sec. 38. Minnesota Statutes 1996, section 121.88, 165.23 subdivision 4, is amended to read: 165.24 Subd. 4. [DUPLICATION POLICY.] Each councilshallmust 165.25 adopt a policy to reduce and eliminate program duplication 165.26 within the district. 165.27 Sec. 39. Minnesota Statutes 1996, section 121.88, 165.28 subdivision 6, is amended to read: 165.29 Subd. 6. [PROGRAMS FOR ADULTS WITH DISABILITIES.] Aschool165.30 board may offer, as part of a community education program, a 165.31 program for adults with disabilities. Boards are encouraged to 165.32 offer programs cooperatively with other districts and 165.33 organizations. Programs may not be limited to district 165.34 residents. Programs may include: 165.35 (1) services enabling the adults to participate in 165.36 community activities or community education classes; 166.1 (2) classes specifically for adults with disabilities; 166.2 (3) outreach activities to identify adults needing service; 166.3 (4) activities to increase public awareness of the roles of 166.4 people with disabilities; 166.5 (5) activities to enhance the role of people with 166.6 disabilities in the community; and 166.7 (6) other direct and indirect services and activities 166.8 benefiting adults with disabilities. 166.9 Sec. 40. Minnesota Statutes 1996, section 121.88, 166.10 subdivision 7, is amended to read: 166.11 Subd. 7. [PROGRAM APPROVAL.] To be eligible for revenue 166.12 for the program for adults with disabilities, a program and 166.13 budget must receive approval from the community education 166.14 section in the departmentof children, families, and learning. 166.15 Approval may be for five years. During that time, aschool166.16 board must report any significant changes to the department for 166.17 approval. For programs offered cooperatively, the request for 166.18 approval must include an agreement on the method by which local 166.19 money is to be derived and distributed. A request for approval 166.20 must include all of the following: 166.21 (1) characteristics of the people to be served; 166.22 (2) description of the program services and activities; 166.23 (3) program budget and amount of aid requested; 166.24 (4) participation by adults with disabilities in developing 166.25 the program; 166.26 (5) assessment of the needs of adults with disabilities; 166.27 and 166.28 (6) cooperative efforts with community organizations. 166.29 Sec. 41. Minnesota Statutes 1996, section 121.88, 166.30 subdivision 9, is amended to read: 166.31 Subd. 9. [YOUTH SERVICE PROGRAMS.] A school board may 166.32 offer, as part of a community education program with a youth 166.33 development program, a youth service program that provides young 166.34 people with meaningful opportunities to become involved in their 166.35 community, develop individual capabilities, make career 166.36 connections, seek support networks and services, become active 167.1 citizens, and address community needs through youth service. 167.2 Theschoolboard may award up to one credit, or the equivalent, 167.3 toward graduation for a pupil who completes the youth service 167.4 requirements of the district. The community education advisory 167.5 council, after considering the results of the commissioner's 167.6 study under section 121.885, subdivision 1,shallmust design 167.7 the program in cooperation with the district planning, 167.8 evaluating and reporting committee and local organizations that 167.9 train volunteers or need volunteers' services. Programs must 167.10 include: 167.11 (1) preliminary training for pupil volunteers conducted, 167.12 when possible, by organizations experienced in such training; 167.13 (2) supervision of the pupil volunteers to ensure 167.14 appropriate placement and adequate learning opportunity; 167.15 (3) sufficient opportunity, in a positive setting for human 167.16 development, for pupil volunteers to develop general skills in 167.17 preparation for employment, to enhance self-esteem and 167.18 self-worth, and to give genuine service to their community; 167.19 (4) integration of academic learning with the service 167.20 experience; and 167.21 (5) integration of youth community service with elementary 167.22 and secondary curriculum. 167.23 Youth service projects include, but are not limited to, the 167.24 following: 167.25 (1) human services for the elderly, including home care and 167.26 related services; 167.27 (2) tutoring and mentoring; 167.28 (3) training for and providing emergency services; 167.29 (4) services at extended day programs; 167.30 (5) environmental services; and 167.31 (6) service-learning programs in which schools, including 167.32 post-secondary schools, and employers work together with young 167.33 people to provide them with meaningful opportunities for 167.34 community service and with the academic and technical skills 167.35 that employers require. 167.36 The commissioner shall maintain a list of acceptable 168.1 projects with a description of each project. A project that is 168.2 not on the list must be approved by the commissioner. 168.3 A youth service project must have a community sponsor that 168.4 may be a governmental unit or nonprofit organization. To assure 168.5 that pupils provide additional services, each sponsor must 168.6 assure that pupil services do not displace employees or reduce 168.7 the workload of any employee. 168.8 The commissionermustshall assist districts in planning 168.9 youth service programs, implementing programs, and developing 168.10 recommendations for obtaining community sponsors. 168.11 Sec. 42. Minnesota Statutes 1997 Supplement, section 168.12 121.88, subdivision 10, is amended to read: 168.13 Subd. 10. [EXTENDED DAY PROGRAMS.] (a) A school board may 168.14 offer, as part of a community education program, an extended day 168.15 program for children from kindergarten through grade 6 for the 168.16 purpose of expanding students' learning opportunities. A 168.17 program must include the following: 168.18 (1) adult supervised programs while school is not in 168.19 session; 168.20 (2) parental involvement in program design and direction; 168.21 (3) partnerships with theK-12kindergarten through grade 168.22 12 system, and other public, private, or nonprofit entities; and 168.23 (4) opportunities for trained secondary school pupils to 168.24 work with younger children in a supervised setting as part of a 168.25 community service program. 168.26 (b) The district may charge a sliding fee based upon family 168.27 income for extended day programs. The district may receive 168.28 money from other public or private sources for the extended day 168.29 program. Theschoolboard of the districtshallmust develop 168.30 standards for school age child care programs. Districts with 168.31 programs in operation before July 1, 1990, must adopt standards 168.32 before October 1, 1991. All other districts must adopt 168.33 standards within one year after the district first offers 168.34 services under a program authorized by this subdivision. The 168.35 state board of education may not adopt rules for extended day 168.36 programs. 169.1 (c) The district shall maintain a separate account within 169.2 the community services fund for all funds related to the 169.3 extended day program. 169.4 Sec. 43. Minnesota Statutes 1996, section 121.882, 169.5 subdivision 1, is amended to read: 169.6 Subdivision 1. [ESTABLISHMENT.] A district that provides a 169.7 community education program under sections 121.85 to 121.88 may 169.8 establish an early childhood family education program. Two or 169.9 more districts, each of which provides a community education 169.10 program, may cooperate to jointly provide an early childhood 169.11 family education program. 169.12 Sec. 44. Minnesota Statutes 1997 Supplement, section 169.13 121.882, subdivision 2, is amended to read: 169.14 Subd. 2. [PROGRAM CHARACTERISTICS.] Early childhood family 169.15 education programs are programs for children in the period of 169.16 life from birth to kindergarten, for the parents of such 169.17 children, and for expectant parents. The programs may include 169.18 the following: 169.19 (1) programs to educate parents about the physical, mental, 169.20 and emotional development of children; 169.21 (2) programs to enhance the skills of parents in providing 169.22 for their children's learning and development; 169.23 (3) learning experiences for children and parents that 169.24 promote children's development; 169.25 (4) activities designed to detect children's physical, 169.26 mental, emotional, or behavioral problems that may cause 169.27 learning problems; 169.28 (5) activities and materials designed to encourage 169.29 self-esteem, skills, and behavior that prevent sexual and other 169.30 interpersonal violence; 169.31 (6) educational materials which may be borrowed for home 169.32 use; 169.33 (7) information on related community resources; 169.34 (8) programs to prevent child abuse and neglect; 169.35 (9) other programs or activities to improve the health, 169.36 development, and learning readiness of children; or 170.1 (10) activities designed to maximize development during 170.2 infancy. 170.3 The programsshallmust not include activities for children 170.4 that do not require substantial involvement of the children's 170.5 parents. The programsshallmust be reviewed periodically to 170.6 assure the instruction and materials are not racially, 170.7 culturally, or sexually biased. The programsshallmust 170.8 encourage parents to be aware of practices that may affect 170.9 equitable development of children. 170.10 Sec. 45. Minnesota Statutes 1996, section 121.882, 170.11 subdivision 2b, is amended to read: 170.12 Subd. 2b. [HOME VISITING PROGRAM.] (a) The commissionerof170.13children, families, and learningshall include as part of the 170.14 early childhood family education programs a parent education 170.15 component to prevent child abuse and neglect. This parent 170.16 education component must include: 170.17 (1) expanding statewide the home visiting component of the 170.18 early childhood family education programs; 170.19 (2) training parent educators, child educators, community 170.20 outreach workers, and home visitors in the dynamics of child 170.21 abuse and neglect and positive parenting and discipline 170.22 practices; and 170.23 (3) developing and disseminating education and public 170.24 information materials that promote positive parenting skills and 170.25 prevent child abuse and neglect. 170.26 (b) The parent education component must: 170.27 (1) offer to isolated or at-risk families home visiting 170.28 parent education services that at least address parenting 170.29 skills, a child's development and stages of growth, 170.30 communication skills, managing stress, problem-solving skills, 170.31 positive child discipline practices, methods of improving 170.32 parent-child interactions and enhancing self-esteem, using 170.33 community support services and other resources, and encouraging 170.34 parents to have fun with and enjoy their children; 170.35 (2) develop a risk assessment tool to determine the 170.36 family's level of risk; 171.1 (3) establish clear objectives and protocols for home 171.2 visits; 171.3 (4) determine the frequency and duration of home visits 171.4 based on a risk-need assessment of the client, with home visits 171.5 beginning in the second trimester of pregnancy and continuing, 171.6 based on client need, until a child is six years old; 171.7 (5) encourage families to make a transition from home 171.8 visits to site-based parenting programs to build a family 171.9 support network and reduce the effects of isolation; 171.10 (6) develop and distribute education materials on 171.11 preventing child abuse and neglect that may be used in home 171.12 visiting programs and parent education classes and distributed 171.13 to the public; 171.14 (7) initially provide at least 40 hours of training and 171.15 thereafter ongoing training for parent educators, child 171.16 educators, community outreach workers, and home visitors that 171.17 covers the dynamics of child abuse and neglect, domestic 171.18 violence and victimization within family systems, signs of abuse 171.19 or other indications that a child may be at risk of being abused 171.20 or neglected, what child abuse and neglect are, how to properly 171.21 report cases of child abuse and neglect, respect for cultural 171.22 preferences in child rearing, what community resources, social 171.23 service agencies, and family support activities and programs are 171.24 available, child development and growth, parenting skills, 171.25 positive child discipline practices, identifying stress factors 171.26 and techniques for reducing stress, home visiting techniques, 171.27 and risk assessment measures; 171.28 (8) provide program services that are community-based, 171.29 accessible, and culturally relevant; and 171.30 (9) foster collaboration among existing agencies and 171.31 community-based organizations that serve young children and 171.32 their families. 171.33 (c) Home visitors should reflect the demographic 171.34 composition of the community the home visitor is serving to the 171.35 extent possible. 171.36 Sec. 46. Minnesota Statutes 1996, section 121.882, 172.1 subdivision 3, is amended to read: 172.2 Subd. 3. [SEPARATE ACCOUNTS.] The districtshallmust 172.3 maintain a separate account within the community education fund 172.4 for money for early childhood family education programs. 172.5 Sec. 47. Minnesota Statutes 1996, section 121.882, 172.6 subdivision 7, is amended to read: 172.7 Subd. 7. [DISTRICT ADVISORY COUNCILS.] Theschool172.8 boardshallmust appoint an advisory council from the area in 172.9 which the program is provided. A majority of the councilshall172.10 must be parents participating in the program. The councilshall172.11 must assist the board in developing, planning, and monitoring 172.12 the early childhood family education program. The councilshall172.13 must report to theschoolboard and the community education 172.14 advisory council. 172.15 Sec. 48. Minnesota Statutes 1996, section 121.882, 172.16 subdivision 7a, is amended to read: 172.17 Subd. 7a. [ALTERNATIVE COUNCIL.] Aschoolboard may direct 172.18 the community education council, required according to section 172.19 121.88, subdivision 2, to perform the functions of the advisory 172.20 council for early childhood family education. 172.21 Sec. 49. Minnesota Statutes 1996, section 121.882, 172.22 subdivision 8, is amended to read: 172.23 Subd. 8. [TEACHERS.] A school boardshallmust employ 172.24 necessary qualified teachers for its early childhood family 172.25 education programs. 172.26 Sec. 50. Minnesota Statutes 1996, section 121.882, 172.27 subdivision 9, is amended to read: 172.28 Subd. 9. [ASSISTANCE.] The departmentof children,172.29families, and learning shallmust provide assistance to 172.30 districts with programs described in this section. The 172.31 department must establish guidelines that list barriers to 172.32 learning and development affecting children served by early 172.33 childhood family education programs. 172.34 Sec. 51. Minnesota Statutes 1996, section 121.885, 172.35 subdivision 1, is amended to read: 172.36 Subdivision 1. [SERVICE-LEARNING AND WORK-BASED LEARNING 173.1 PROGRAMS STUDY.] The governor's workforce development council 173.2shallmust assist the commissionerof children, families, and173.3learningin studying how to combine community service activities 173.4 and service-learning with work-based learning programs. 173.5 Sec. 52. Minnesota Statutes 1996, section 121.885, 173.6 subdivision 4, is amended to read: 173.7 Subd. 4. [PROGRAMS FOLLOWING YOUTH COMMUNITY SERVICE.] (a) 173.8 The Minnesota commission on national and community service in 173.9 cooperation with the governor's workforce development council, 173.10 the commissioner and the higher education services office, shall 173.11 provide for those participants who successfully complete youth 173.12 community service under sections 121.704 to 121.709, the 173.13 following: 173.14 (1) for those who have a high school diploma or its 173.15 equivalent, an opportunity to participate in a youth 173.16 apprenticeship program at a community or technical college; and 173.17 (2) for those who are post-secondary students, an 173.18 opportunity to participate in an educational program that 173.19 supplements post-secondary courses leading to a degree or a 173.20 statewide credential of academic and occupational proficiency. 173.21 (b) Participants who successfully complete a youth 173.22 community service program under sections 121.704 to 121.710 are 173.23 eligible to receive an education voucher as provided under 173.24 section 121.707, subdivision 4. The voucher recipient may apply 173.25 the voucher toward the cost of the recipient's tuition and other 173.26 education-related expenses at a post-secondary school under 173.27 paragraph (a). 173.28 (c) The governor's workforce development council, in 173.29 cooperation with the board of trustees of the Minnesota state 173.30 colleges and universities,shallmust establish a mechanism to 173.31 transfer credit earned in a youth apprenticeship program between 173.32 the technical colleges and other post-secondary institutions 173.33 offering applied associate degrees. 173.34 Sec. 53. Minnesota Statutes 1997 Supplement, section 173.35 123.35, subdivision 8, is amended to read: 173.36 Subd. 8. [EVENING SCHOOLS; ADULT AND CONTINUING 174.1 EDUCATION.] The board may establish and maintain public evening 174.2 schools and adult and continuing education programsand such. 174.3 The evening schools and adult and continuing education 174.4 programswhen somaintainedshallby the board must be available 174.5 to all persons over 16 years of age who, from any cause, are 174.6 unable to attend the full-time elementary or secondary schools 174.7 of such district. 174.8 Sec. 54. Minnesota Statutes 1996, section 123.70, 174.9 subdivision 2, is amended to read: 174.10 Subd. 2. [SCHEDULE OF IMMUNIZATIONS.] No person who has 174.11 commenced a treatment schedule of immunization pursuant to 174.12 subdivision 1, clause (2), may remain enrolled in any child care 174.13 facility, elementary, or secondary school in this state after 18 174.14 months of enrollment unless there is submitted to the 174.15 administrator, or other person having general control and 174.16 supervision of the school or child care facility, a statement 174.17 from a physician or a public clinic which provides immunizations 174.18 that the person has completed the primary schedule of 174.19 immunizations for diphtheria, tetanus, pertussis, and polioand174.20in which the month and year of each additional immunization174.21received is included. The statement must include the month and 174.22 year of each additional immunization received. For a child less 174.23 than seven years of age, a primary schedule of immunizations 174.24 shall consist of four doses of vaccine for diphtheria, tetanus, 174.25 and pertussis and three doses of vaccine for poliomyelitis. For 174.26 a child seven years of age or older, a primary schedule of 174.27 immunizations shall consist of three doses of vaccine for 174.28 diphtheria, tetanus, and polio. 174.29 Sec. 55. Minnesota Statutes 1996, section 123.70, 174.30 subdivision 4, is amended to read: 174.31 Subd. 4. [SUBSTITUTE IMMUNIZATION STATEMENT.] A person who 174.32 is enrolling or enrolled in an elementary or secondary school or 174.33 child care facility may substitute a statement from the 174.34 emancipated person or a parent or guardian if the person is a 174.35 minor child in lieu of the statement from a physician or public 174.36 clinic which provides immunizations. If the statement is from a 175.1 parent or guardian or emancipated person, the statementshall175.2 must indicate the month and year of each immunization given. In 175.3 order for the statement to be acceptable for a person who is 175.4 enrolling in an elementary school and who is six years of age or 175.5 younger, it must indicate that the following was given: no less 175.6 than one dose of vaccine each for measles, mumps, and rubella 175.7 given separately or in combination, and no less than four doses 175.8 of vaccine for poliomyelitis, unless the third dose was given 175.9 after the fourth birthday, then three doses are minimum, and no 175.10 less than five doses of vaccine for diphtheria, tetanus, and 175.11 pertussis, unless the fourth dose was given after the fourth 175.12 birthday, then four are minimum. In order for the statement to 175.13 be acceptable for a person who is enrolling in an elementary or 175.14 secondary school and is age seven through age 19, the statement 175.15 must indicate that the person has received no less than one dose 175.16 of vaccine each for measles, mumps, and rubella given separately 175.17 or in combination and consistent with subdivision 10, and no 175.18 less than three doses of vaccine for poliomyelitis, diphtheria, 175.19 and tetanus. 175.20 In order for the statement to be acceptable for a person 175.21 who is enrolling in a secondary school, and who was born after 175.22 1956 and is 20 years of age or older, the statement must 175.23 indicate that the person has received no less than one dose of 175.24 vaccine each for measles, mumps, and rubella given separately or 175.25 in combination, and no less than one dose of vaccine for 175.26 diphtheria and tetanus within the preceding ten years. In order 175.27 for the statement to be acceptable for a person who is enrolling 175.28 in a child care facility and who is at least 15 months old but 175.29 who has not reached five years of age, it must indicate that the 175.30 following were given: no less than one dose of vaccine each for 175.31 measles, mumps, and rubella given separately or in combination; 175.32 no less than one dose of vaccine for haemophilus influenza type 175.33 b; no less than four doses of vaccine for diphtheria, tetanus, 175.34 and pertussis; and no less than three doses of vaccine for 175.35 poliomyelitis. In order for the statement to be acceptable for 175.36 a person who is enrolling in a child care facility and who is 176.1 five or six years of age, it must indicate that the following 176.2 was given: no less than one dose of vaccine each for measles, 176.3 mumps, and rubella given separately or in combination, no less 176.4 than four doses of vaccine for diphtheria, tetanus, and 176.5 pertussis, and no less than three doses of vaccine for 176.6 poliomyelitis. In order for the statement to be acceptable for 176.7 a person who is enrolling in a child care facility and who is 176.8 seven years of age or older, the statement must indicate that 176.9 the person has received no less than one dose of vaccine each 176.10 for measles, mumps, and rubella given separately or in 176.11 combination and consistent with subdivision 10, and no less than 176.12 three doses of vaccine for poliomyelitis, diphtheria, and 176.13 tetanus. The commissioner of health, on finding that any of the 176.14 above requirements are not necessary to protect the public's 176.15 health, may suspend for one year that requirement. 176.16 Sec. 56. Minnesota Statutes 1996, section 123.70, 176.17 subdivision 8, is amended to read: 176.18 Subd. 8. [REPORT.] The administrator or other person 176.19 having general control and supervision of the elementary or 176.20 secondary school shall file a report with the commissionerof176.21children, families, and learningon all persons enrolled in the 176.22 school, except that. The superintendent of eachschooldistrict 176.23 shall file a report with the commissionerof children, families,176.24and learningfor all persons within the district receiving 176.25 instruction in a home school in compliance with sections 120.101 176.26 and 120.102. The parent of persons receiving instruction in a 176.27 home school shall submit the statements as required by 176.28 subdivisions 1, 2, 3, and 4 to the superintendent of theschool176.29 district in which the person resides by October 1 of each school 176.30 year. The school reportshallmust be prepared on forms 176.31 developed jointly by the commissioner of health and the 176.32 commissioner of children, families, and learning and be 176.33 distributed to the localschooldistricts by the commissioner of 176.34 healthand shall. The school report must state the number of 176.35 persons attending the school, the number of persons who have not 176.36 been immunized according to subdivision 1 or 2, and the number 177.1 of persons who received an exemption under subdivision 3, clause 177.2 (c) or (d). The school reportshallmust be filed with the 177.3 commissioner of children, families, and learning within 60 days 177.4 of the commencement of each new school term. Upon request, a 177.5 districtshallmust be given a 60-day extension for filing the 177.6 school report. The commissioner of children, families, and 177.7 learning shall forward the report, or a copy thereof, to the 177.8 commissioner of health who shall provide summary reports to 177.9 boards of health as defined in section 145A.02, subdivision 2. 177.10 The administrator or other person having general control and 177.11 supervision of the child care facility shall file a report with 177.12 the commissioner of human services on all persons enrolled in 177.13 the child care facility. The child care facility report must be 177.14 prepared on forms developed jointly by the commissioner of 177.15 health and the commissioner of human services and be distributed 177.16 to child care facilities by the commissioner of healthand. The 177.17 child care facility report must state the number of persons 177.18 enrolled in the facility, the number of persons with no 177.19 immunizations, the number of persons who received an exemption 177.20 under subdivision 3, clause (c) or (d), and the number of 177.21 persons with partial or full immunization histories. The child 177.22 care facility reportshallmust be filed with the commissioner 177.23 of human services by November 1 of each year. The commissioner 177.24 of human services shall forward the report, or a copy thereof, 177.25 to the commissioner of health who shall provide summary reports 177.26 to boards of health as defined in section 145A.02, subdivision 177.27 2. The report required by this subdivision is not required of a 177.28 family child care or group family child care facility, for 177.29 prekindergarten children enrolled in any elementary or secondary 177.30 school provided services according to section 120.17, 177.31 subdivision 2, nor for child care facilities in which at least 177.32 75 percent of children in the facility participate on a one-time 177.33 only or occasional basis to a maximum of 45 hours per child, per 177.34 month. 177.35 Sec. 57. Minnesota Statutes 1996, section 123.702, 177.36 subdivision 1, is amended to read: 178.1 Subdivision 1. [EARLY CHILDHOOD DEVELOPMENTAL SCREENING.] 178.2 Every school boardshallmust provide for a mandatory program of 178.3 early childhood developmental screening for children once before 178.4 school entrance, targeting children who are between 3-1/2 and 178.5 four years old. This screening programshallmust be 178.6 established either by one board, by two or more boards acting in 178.7 cooperation, by service cooperatives, by early childhood family 178.8 education programs, or by other existing programs. This 178.9 screening examination is a mandatory requirement for a student 178.10 to continue attending kindergarten or first grade in a public 178.11 school. A child need not submit to developmental screening 178.12 provided by aschoolboard if the child's health records 178.13 indicate to theschoolboard that the child has received 178.14 comparable developmental screening from a public or private 178.15 health care organization or individual health care provider. 178.16The schoolDistricts are encouraged to reduce the costs of 178.17 preschool developmental screening programs by utilizing 178.18 volunteers in implementing the program. 178.19 Sec. 58. Minnesota Statutes 1996, section 123.702, 178.20 subdivision 1b, is amended to read: 178.21 Subd. 1b. [SCREENING PROGRAM.] (a) A screening program 178.22shallmust include at least the following components: 178.23 developmental assessments, hearing and vision screening or 178.24 referral, immunization review and referral, the child's height 178.25 and weight, identification of risk factors that may influence 178.26 learning, an interview with the parent about the child, and 178.27 referral for assessment, diagnosis, and treatment when potential 178.28 needs are identified. Theschooldistrict and the person 178.29 performing or supervising the screeningshallmust provide a 178.30 parent or guardian with clear written notice that the parent or 178.31 guardian may decline to answer questions or provide information 178.32 about family circumstances that might affect development and 178.33 identification of risk factors that may influence learning. The 178.34 noticeshallmust clearly state that declining to answer 178.35 questions or provide information does not prevent the child from 178.36 being enrolled in kindergarten or first grade if all other 179.1 screening components are met. If a parent or guardian is not 179.2 able to read and comprehend the written notice, theschool179.3 district and the person performing or supervising the screening 179.4 must convey the information in another manner. The noticeshall179.5 must also inform the parent or guardian that a child need not 179.6 submit to theschooldistrict screening program if the child's 179.7 health records indicate to the school that the child has 179.8 received comparable developmental screening performed within the 179.9 preceding 365 days by a public or private health care 179.10 organization or individual health care provider. The notice 179.11shallmust be given to a parent or guardian at the time the 179.12 district initially provides information to the parent or 179.13 guardian about screening andshallmust be given again at the 179.14 screening location. 179.15 (b) All screening components shall be consistent with the 179.16 standards of the state commissioner of health for early 179.17 developmental screening programs.NoA developmental screening 179.18 programshallmust not provide laboratory tests or a physical 179.19 examination to any child. Theschooldistrictshallmust 179.20 request from the public or private health care organization or 179.21 the individual health care provider the results of any 179.22 laboratory test or physical examination within the 12 months 179.23 preceding a child's scheduled screening. 179.24 (c) If a child is without health coverage, the school 179.25 districtshallmust refer the child to an appropriate health 179.26 care provider. 179.27 (d) Aschoolboard may offer additional components such as 179.28 nutritional, physical and dental assessments, review of family 179.29 circumstances that might affect development, blood pressure, 179.30 laboratory tests, and health history. 179.31 (e) If a statement signed by the child's parent or guardian 179.32 is submitted to the administrator or other person having general 179.33 control and supervision of the school that the child has not 179.34 been screened because of conscientiously held beliefs of the 179.35 parent or guardian, the screening is not required. 179.36 Sec. 59. Minnesota Statutes 1996, section 123.702, 180.1 subdivision 2, is amended to read: 180.2 Subd. 2. [FOLLOW-UP SCREENING.] If any child's screening 180.3 indicates a condition which requires diagnosis or treatment, the 180.4 child's parents shall be notified of the condition and 180.5 theschoolboard shall ensure that an appropriate follow-up and 180.6 referral process is available. 180.7 Sec. 60. Minnesota Statutes 1996, section 123.702, 180.8 subdivision 3, is amended to read: 180.9 Subd. 3. [DEVELOPMENTAL SCREENING PROGRAM INFORMATION.] 180.10 Theschoolboardshallmust inform each resident family with a 180.11 child eligible to participate in the developmental screening 180.12 program about the availability of the program and the state's 180.13 requirement that a child receive developmental screening not 180.14 later than 30 days after the first day of attending kindergarten 180.15 in a public school. 180.16 Sec. 61. Minnesota Statutes 1996, section 123.702, 180.17 subdivision 4, is amended to read: 180.18 Subd. 4. [DEVELOPMENTAL SCREENING SERVICES.] Aschool180.19 board may contract with or purchase service from an approved 180.20 early developmental screening program in the area. 180.21 Developmental screening must be conducted by either an 180.22 individual who is licensed as, or has training that is similar 180.23 to a special education teacher, school psychologist, 180.24 kindergarten teacher, prekindergarten teacher, school nurse, 180.25 public health nurse, registered nurse, or physician. The 180.26 individual may be a volunteer. 180.27 Sec. 62. Minnesota Statutes 1996, section 123.702, 180.28 subdivision 4a, is amended to read: 180.29 Subd. 4a. [SCREENING RECORD.] Theschooldistrict 180.30shallmust provide the parent or guardian of the child screened 180.31 with a record indicating the month and year the child received 180.32 developmental screening and the results of the screening. The 180.33 districtshallmust keep a duplicate copy of the record of each 180.34 child screened. 180.35 Sec. 63. Minnesota Statutes 1996, section 123.702, 180.36 subdivision 5, is amended to read: 181.1 Subd. 5. [VOLUNTEER SCREENING PROGRAMS.] Everyschool181.2 boardshallmust integrate and utilize volunteer screening 181.3 programs in implementing sections 123.702 to 123.7045 wherever 181.4 possible. 181.5 Sec. 64. Minnesota Statutes 1996, section 123.702, 181.6 subdivision 6, is amended to read: 181.7 Subd. 6. [HEALTH CARE PROVIDER SOCIETIES.] Aschoolboard 181.8 may consult with local societies of health care providers. 181.9 Sec. 65. Minnesota Statutes 1996, section 123.702, 181.10 subdivision 7, is amended to read: 181.11 Subd. 7. [PRIORITY TO VOLUNTEERS.] In selecting personnel 181.12 to implement the screening program, theschooldistrictshall181.13 must give priority first to qualified volunteers. 181.14 Sec. 66. Minnesota Statutes 1996, section 123.704, is 181.15 amended to read: 181.16 123.704 [DATA USE.] 181.17 Data on individuals collected in screening programs 181.18 established pursuant to section 123.702 is private, as defined 181.19 by section 13.02, subdivision 12. Individual and summary data 181.20shallmust be reported to theschooldistrict by the health 181.21 provider who performs the screening services, for the purposes 181.22 of developing appropriate educational programs to meet the 181.23 individual needs of children and designing appropriate health 181.24 education programs for the district; provided,. No data on an 181.25 individual shall be disclosed to the district without the 181.26 consent of that individual's parent or guardian. 181.27 Sec. 67. Minnesota Statutes 1996, section 123.7045, is 181.28 amended to read: 181.29 123.7045 [DEVELOPMENTAL SCREENING AID.] 181.30 Each school year, the stateshallmust pay aschool181.31 district $25 for each child screened according to the 181.32 requirements of section 123.702. If this amount of aid is 181.33 insufficient, the district may permanently transfer from the 181.34 general fund an amount that, when added to the aid, is 181.35 sufficient. 181.36 Sec. 68. Minnesota Statutes 1996, section 124.255, is 182.1 amended to read: 182.2 124.255 [SCHOOL ENRICHMENT PARTNERSHIP PROGRAM.] 182.3 Subdivision 1. [ESTABLISHMENT.] The school enrichment 182.4 partnership program is established. The purpose of the program 182.5 is to encourageschooldistricts to expand the involvement of 182.6 the private sector in the delivery of academic programs. The 182.7 program will provide matching state funds for those provided by 182.8 the private sector. 182.9 Subd. 2. [REVENUE ELIGIBILITY.] Aschooldistrict or group 182.10 ofschooldistricts is eligible to receive state aid under this 182.11 program. Districts may enter into joint agreements to provide 182.12 programs or make expenditures under this section. The 182.13 limitations under this subdivisionshallapply to these programs 182.14 or expenditures as if they were operated by a single district. 182.15 A district may receive $1 of state aid for each $2 raised from 182.16 the private sector. The private match must be in the form of 182.17 cash. Specific types of noncash support may be considered for 182.18 the private match. State aid is limited to the lesser of 182.19 $75,000 or $10 per pupil unit per district. 182.20 Subd. 3. [REVENUE MANAGEMENT.] The use of the state and 182.21 private funds provided under this section is under the general 182.22 control of theschoolboard. The board may establish, without 182.23 using state funds or public employees, a separate foundation to 182.24 directly manage the funds. The private funds must be used to 182.25 acquire instructional or noninstructional academic materials of 182.26 a capital nature including, but not limited to, textbooks, 182.27 globes, maps, and other academic material. The fundsmayshall 182.28 not be used for salaries or other employee benefits. 182.29 Subd. 4. [PROCEDURES; REPORT.] The Minnesota academic 182.30 excellence foundation, under the direction of the commissioner 182.31of children, families, and learning, shallmust establish 182.32 application forms, guidelines, procedures, and timelines for the 182.33 distribution of state aid. The commissioner may require 182.34 reporting necessary to evaluate the program. Measures of 182.35 success will include numbers of partnerships and funds raised; 182.36 numbers of school foundations formed; and demonstrated linkages 183.1 of partnerships to improved instructional delivery resulting in 183.2 increased student learning. 183.3 Subd. 5. [RESULTS-ORIENTED CHARTER SCHOOLS.] 183.4 Notwithstanding section 124.248, subdivision 4, paragraph (b), a 183.5 results-oriented charter school is eligible to participate in 183.6 the program under this section as if it were aschooldistrict. 183.7 Sec. 69. Minnesota Statutes 1996, section 124.26, 183.8 subdivision 1c, is amended to read: 183.9 Subd. 1c. [PROGRAM APPROVAL.] (a) To receive aid under 183.10 this section, a district, a consortium of districts, or a 183.11 private nonprofit organization must submit an application by 183.12 June 1 describing the program, on a form provided by the 183.13 department. The program must be approved by the commissioner 183.14 according to the following criteria: 183.15 (1) how the needs of different levels of learning will be 183.16 met; 183.17 (2) for continuing programs, an evaluation of results; 183.18 (3) anticipated number and education level of participants; 183.19 (4) coordination with other resources and services; 183.20 (5) participation in a consortium, if any, and money 183.21 available from other participants; 183.22 (6) management and program design; 183.23 (7) volunteer training and use of volunteers; 183.24 (8) staff development services; 183.25 (9) program sites and schedules; and 183.26 (10) program expenditures that qualify for aid. 183.27 (b) The commissioner may grant adult basic education funds 183.28 to a private, nonprofit organization to provide services that 183.29 are not offered by a district or that are supplemental to a 183.30 district's program. The program provided under this provision 183.31 must be approved and funded according to the same criteria used 183.32 for district programs. 183.33 (c) Adult basic education programs may be approved under 183.34 this subdivision for up to five years. Five-year program 183.35 approvalshallmust be granted to an applicant who has 183.36 demonstrated the capacity to: 184.1 (1) offer comprehensive learning opportunities and support 184.2 service choices appropriate for and accessible to adults at all 184.3 basic skill need levels; 184.4 (2) provide a participatory and experiential learning 184.5 approach based on the strengths, interests, and needs of each 184.6 adult, that enables adults with basic skill needs to: 184.7 (i) identify, plan for, and evaluate their own progress 184.8 toward achieving their defined educational and occupational 184.9 goals; 184.10 (ii) master the basic academic reading, writing, and 184.11 computational skills, as well as the problem-solving, decision 184.12 making, interpersonal effectiveness, and other life and learning 184.13 skills they need to function effectively in a changing society; 184.14 (iii) locate and be able to use the health, governmental, 184.15 and social services and resources they need to improve their own 184.16 and their families' lives; and 184.17 (iv) continue their education, if they desire, to at least 184.18 the level of secondary school completion, with the ability to 184.19 secure and benefit from continuing education that will enable 184.20 them to become more employable, productive, and responsible 184.21 citizens; 184.22 (3) plan, coordinate, and develop cooperative agreements 184.23 with community resources to address the needs that the adults 184.24 have for support services, such as transportation, flexible 184.25 course scheduling, convenient class locations, and child care; 184.26 (4) collaborate with business, industry, labor unions, and 184.27 employment-training agencies, as well as with family and 184.28 occupational education providers, to arrange for resources and 184.29 services through which adults can attain economic 184.30 self-sufficiency; 184.31 (5) provide sensitive and well trained adult education 184.32 personnel who participate in local, regional, and statewide 184.33 adult basic education staff development events to master 184.34 effective adult learning and teaching techniques; 184.35 (6) participate in regional adult basic education peer 184.36 program reviews and evaluations; and 185.1 (7) submit accurate and timely performance and fiscal 185.2 reports. 185.3 Sec. 70. Minnesota Statutes 1997 Supplement, section 185.4 124.26, subdivision 2, is amended to read: 185.5 Subd. 2. [ACCOUNTS; REVENUE; AID.] Each district, group of 185.6 districts, or private nonprofit organization providing adult 185.7 basic education programsshallmust establish and maintain 185.8 accounts separate from all other district accounts for the 185.9 receipt and disbursement of all funds related to these 185.10 programs. All revenue received pursuant to this sectionshall185.11 must be utilized solely for the purposes of adult basic 185.12 education programs.In no case shallFederal and state aid plus 185.13 levy must not equal more than 100 percent of the actual cost of 185.14 providing these programs. 185.15 Sec. 71. Minnesota Statutes 1997 Supplement, section 185.16 124.2601, subdivision 6, is amended to read: 185.17 Subd. 6. [AID GUARANTEE.] (a) For fiscal year 1994, any 185.18 adult basic education program that receives less state aid under 185.19 subdivisions 3 and 7 than from the aid formula for fiscal year 185.20 1992shallmust receive the amount of aid it received in fiscal 185.21 year 1992. 185.22 (b) For 1995, 1996, and 1997 fiscal years, an adult basic 185.23 education program that receives aidshallmust receive at least 185.24 the amount of aid it received in fiscal year 1992 under 185.25 subdivisions 3 and 7, plus aid equal to the amount of revenue 185.26 that would have been raised for taxes payable in 1994 under 185.27 Minnesota Statutes 1992, section 124.2601, subdivision 4, minus 185.28 the amount raised under subdivision 4. 185.29 (c) For fiscal year 1998, any adult basic education program 185.30 that receives less state aid than in fiscal year 1997 shall 185.31 receive additional aid equal to 80 percent of the difference 185.32 between its 1997 aid and the amount of aid under subdivision 5. 185.33 For fiscal year 1999 and later, additional aid under this 185.34 paragraph must be reduced by 20 percent each year. 185.35 Sec. 72. Minnesota Statutes 1996, section 124.2601, 185.36 subdivision 7, is amended to read: 186.1 Subd. 7. [PRORATION.] If the total appropriation for adult 186.2 basic education aid is insufficient to pay all approved programs 186.3 the full amount of aid earned, the departmentof children,186.4families, and learning shallmust proportionately reduce each 186.5 approved program's aid. 186.6 Sec. 73. Minnesota Statutes 1996, section 124.2605, is 186.7 amended to read: 186.8 124.2605 [GED TEST FEES.] 186.9 The commissionerof children, families, and learningshall 186.10 pay 60 percent of the fee that is charged to an eligible 186.11 individual for the full battery of a GED test, but not more than 186.12 $20 for an eligible individual. 186.13 Sec. 74. Minnesota Statutes 1997 Supplement, section 186.14 124.2615, subdivision 2, is amended to read: 186.15 Subd. 2. [AMOUNT OF AID.] (a) A district is eligible to 186.16 receive learning readiness aid if the program plan as required 186.17 by subdivision 1 has been approved by the commissionerof186.18children, families, and learning. 186.19 (b) For fiscal year 1998 and thereafter, a district 186.20shallmust receive learning readiness aid equal to: 186.21 (1) the number of eligible four-year old children in the 186.22 district times the ratio of 50 percent of the total learning 186.23 readiness aid for that year to the total number of eligible 186.24 four-year old children reported to the commissioner for that 186.25 year; plus 186.26 (2) the number of pupils enrolled in the school district 186.27 from families eligible for the free or reduced school lunch 186.28 program times the ratio of 50 percent of the total learning 186.29 readiness aid for that year to the total number of pupils in the 186.30 state from families eligible for the free or reduced school 186.31 lunch program. 186.32 Sec. 75. Minnesota Statutes 1996, section 124.2615, 186.33 subdivision 4, is amended to read: 186.34 Subd. 4. [SEPARATE ACCOUNTS.] The districtshallmust 186.35 deposit learning readiness aid in a separate account within the 186.36 community education fund. 187.1 Sec. 76. Minnesota Statutes 1996, section 124.2711, as 187.2 amended by Laws 1997, chapter 162, article 1, sections 6 and 7, 187.3 is amended to read: 187.4 124.2711 [EARLY CHILDHOOD FAMILY EDUCATION REVENUE.] 187.5 Subdivision 1. [REVENUE.] The revenue for early childhood 187.6 family education programs for a school district equals $101.25 187.7 for 1998 and $113.50 for 1999 and later fiscal years times the 187.8 greater of: 187.9 (1) 150; or 187.10 (2) the number of people under five years of age residing 187.11 in theschooldistrict on October 1 of the previous school year. 187.12 Subd. 2. [POPULATION.] For the purposes of subdivision 1, 187.13 data reported to the departmentof children, families, and187.14learningmay be used to determine the number of people under 187.15 five years of age residing in the district. The commissioner, 187.16 with the assistance of the state demographer, shall review the 187.17 number reported by any district operating an early childhood 187.18 family education program. If requested, the district shall 187.19 submit to the commissioner an explanation of its methods and 187.20 other information necessary to document accuracy. If the 187.21 commissioner determines that the district has not provided 187.22 sufficient documentation of accuracy, the commissioner may 187.23 request the state demographer to prepare an estimate of the 187.24 number of people under five years of age residing in the 187.25 district and may use this estimate for the purposes of 187.26 subdivision 1. 187.27 Subd. 2a. [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 187.28 obtain early childhood family education revenue, a district may 187.29 levy an amount equal to the tax rate of .653 percent times the 187.30 adjusted tax capacity of the district for the year preceding the 187.31 year the levy is certified. If the amount of the early 187.32 childhood family education levy would exceed the early childhood 187.33 family education revenue, the early childhood family education 187.34 levyshallmust equal the early childhood family education 187.35 revenue. 187.36 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] If a 188.1 district complies with the provisions of section 121.882, it 188.2shallmust receive early childhood family education aid equal to 188.3 the difference between the early childhood family education 188.4 revenue and the early childhood family education levy. If the 188.5 district does not levy the entire amount permitted, the early 188.6 childhood family education aidshallmust be reduced in 188.7 proportion to the actual amount levied. 188.8 Subd. 4. [USE OF REVENUE RESTRICTED.] Early childhood 188.9 family education revenue may be used only for early childhood 188.10 family education programs. Not more than five percent of early 188.11 childhood family education revenue may be used to administer 188.12 early childhood family education programs. The increase in 188.13 revenue for fiscal years 1992 and 1993shallmust be used to: 188.14 (1) increase participation of families so that the total 188.15 participation in early childhood family education programs in 188.16 the district more nearly reflects the demographic, racial, 188.17 cultural, and ethnic diversity of the district; and 188.18 (2) provide programs for families who, because of poverty 188.19 and other barriers to learning, may need programs designed to 188.20 meet their needs. 188.21 Subd. 5. [HOME VISITING LEVY.] Aschooldistrict that 188.22 enters into a collaborative agreement to provide education 188.23 services and social services to families with young children may 188.24 levy an amount equal to $1.60 times the number of people under 188.25 five years of age residing in the district on September 1 of the 188.26 last school year. Levy revenue under this subdivisionshall188.27 must not be included as revenue under subdivision 1. The 188.28 revenueshallmust be used for home visiting programs under 188.29 section 121.882, subdivision 2b. 188.30 Subd. 6. [RESERVE ACCOUNT.] Early childhood family 188.31 education revenue, which includes aids, levies, fees, grants, 188.32 and all other revenues received by theschooldistrict for early 188.33 childhood family education programs, must be maintained in a 188.34 reserve account within the community service fund. 188.35 Sec. 77. Minnesota Statutes 1996, section 124.2712, is 188.36 amended to read: 189.1 124.2712 [ADDITIONAL ECFE REVENUE.] 189.2 In addition to the revenue in section 124.2711, subdivision 189.3 1, in fiscal year 1994 a district is eligible for aid equal to 189.4 $1.60 times the greater of 150 or the number of people under 189.5 five years of age residing in theschooldistrict on September 1 189.6 of the last school year. This amount may be used only for 189.7 in-service education for early childhood family education parent 189.8 educators, child educators, and home visitors for violence 189.9 prevention programs and for home visiting programs under section 189.10 126.77. A district that uses revenue under this paragraph for 189.11 home visiting programsshallmust provide home visiting program 189.12 services through its early childhood family education program or 189.13 shall contract with a public or nonprofit organization to 189.14 provide such services. A district may establish a new home 189.15 visiting program only where no existing, reasonably accessible 189.16 home visiting program meets the program requirements in section 189.17 126.77. 189.18 Sec. 78. Minnesota Statutes 1996, section 124.2713, 189.19 subdivision 7, is amended to read: 189.20 Subd. 7. [COMMUNITY EDUCATION AID.] A district's community 189.21 education aid is the difference between its community education 189.22 revenue and the community education levy. If the district does 189.23 not levy the entire amount permitted, the community education 189.24 aidshallmust be reduced in proportion to the actual amount 189.25 levied. 189.26 Sec. 79. Minnesota Statutes 1997 Supplement, section 189.27 124.2713, subdivision 8, is amended to read: 189.28 Subd. 8. [USES OF GENERAL REVENUE.] (a) General community 189.29 education revenue may be used for: 189.30 (1) nonvocational, recreational, and leisure time 189.31 activities and programs; 189.32 (2) programs for adults with disabilities, if the programs 189.33 and budgets are approved by the departmentof children,189.34families, and learning; 189.35 (3) adult basic education programs, according to section 189.36 124.26; 190.1 (4) summer programs for elementary and secondary pupils; 190.2 (5) implementation of a youth development plan; 190.3 (6) implementation of a youth service program; 190.4 (7) early childhood family education programs, according to 190.5 section 121.882; and 190.6 (8) extended day programs, according to section 121.88, 190.7 subdivision 10. 190.8 (9) In addition to money from other sources, a district may 190.9 use up to ten percent of its community education revenue for 190.10 equipment that is used exclusively in community education 190.11 programs. This revenue may be used only for the following 190.12 purposes: 190.13 (i) to purchase or lease computers and related materials; 190.14 (ii) to purchase or lease equipment for instructional 190.15 programs; and 190.16 (iii) to purchase textbooks and library books. 190.17 (b) General community education revenue must not be used to 190.18 subsidize the direct activity costs for adult enrichment 190.19 programs. Direct activity costs include, but are not limited 190.20 to, the cost of the activity leader or instructor, cost of 190.21 materials, or transportation costs. 190.22 Sec. 80. Minnesota Statutes 1996, section 124.2715, 190.23 subdivision 3, is amended to read: 190.24 Subd. 3. [LEVY.] A district may levy for a program for 190.25 adults with disabilities an amount up to the amount designated 190.26 in subdivision 2. In the case of a program offered by a group 190.27 of districts, the levy amountshallmust be apportioned among 190.28 the districts according to the agreement submitted to the 190.29 departmentof children, families, and learning. 190.30 Sec. 81. Minnesota Statutes 1996, section 124.2716, 190.31 subdivision 1, is amended to read: 190.32 Subdivision 1. [ELIGIBILITY.] Aschooldistrict that 190.33 offers an extended day program according to section 121.88, 190.34 subdivision 10, is eligible for extended day revenue for the 190.35 additional costs of providing services to children with 190.36 disabilities or to children experiencing family or related 191.1 problems of a temporary nature who participate in the extended 191.2 day program. 191.3 Sec. 82. Minnesota Statutes 1996, section 124.2716, 191.4 subdivision 2, is amended to read: 191.5 Subd. 2. [EXTENDED DAY REVENUE.] The extended day revenue 191.6 for an eligibleschooldistrict equals the approved additional 191.7 cost of providing services to children with disabilities or 191.8 children experiencing family or related problems of a temporary 191.9 nature who participate in the extended day program. 191.10 Sec. 83. Minnesota Statutes 1996, section 124.276, 191.11 subdivision 1, is amended to read: 191.12 Subdivision 1. [ELIGIBILITY.] Aschooldistrict that has a 191.13 family connections program, according to sections 125.70 to 191.14 125.705, for one or more of its teachers is eligible for aid to 191.15 extend the teaching contract of a family connections teacher. 191.16 Sec. 84. Minnesota Statutes 1996, section 124.276, 191.17 subdivision 3, is amended to read: 191.18 Subd. 3. [COMMISSIONER APPROVAL.] The commissioner may 191.19 approve plans and applications for districts throughout the 191.20 state for family connections aid.Application procedures and191.21deadlines shall be established byThe commissioner shall 191.22 establish application procedures and deadlines. 191.23 Sec. 85. Minnesota Statutes 1996, section 124C.12, 191.24 subdivision 2, is amended to read: 191.25 Subd. 2. [ELIGIBILITY.] An applicant for revenue may be 191.26 any one of the following: 191.27 (1) aschooldistrict located in a city of the first class 191.28 offering a program in cooperation with other districts or by 191.29 itself, in one or more areas in the district or in the entire 191.30 district; 191.31 (2) at least two cooperatingschooldistricts located in 191.32 the seven-county metropolitan area but not located in a city of 191.33 the first class; 191.34 (3) a group ofschooldistricts that are all members of the 191.35 same education district; 191.36 (4) an education district; 192.1 (5) a group of cooperatingschooldistricts none of which 192.2 are members of any education district; or 192.3 (6) aschooldistrict. 192.4 Sec. 86. Minnesota Statutes 1996, section 125.702, is 192.5 amended to read: 192.6 125.702 [PROGRAM SELECTION.] 192.7 Subdivision 1. [AUTHORIZATION.] Aschooldistrict or group 192.8 of districts may establish an improved learning program. 192.9 Subd. 2. [RULES AND RIGHTS.] The state board of education 192.10 may waiveschooldistrict compliance with its rules which would 192.11 prevent implementation of an improved learning program. 192.12 Participation in an improved learning program as a 192.13 principal-teacher, counselor-teacher, or career teachershall192.14 must not affect seniority in the district or rights under the 192.15 applicable collective bargaining agreement. 192.16 Subd. 3. [ADDITIONAL FUNDING.] Aschooldistrict providing 192.17 an improved learning program may receive funds for the program 192.18 from private sources and governmental agencies, including state 192.19 or federal funds. 192.20 Sec. 87. Minnesota Statutes 1996, section 125.703, is 192.21 amended to read: 192.22 125.703 [ADVISORY COUNCIL.] 192.23 Theschoolboard of a district providing a family 192.24 connections programshallmust appoint an advisory council. 192.25 Council membersshallmust be selected from the school 192.26 attendance area in which programs are provided. Members of the 192.27 council may include students, teachers, principals, 192.28 administrators and community members. A majority of the members 192.29shallmust be parents with children participating in the local 192.30 program. The local advisory councilshallmust advise the 192.31schoolboard in the development, coordination, supervision, and 192.32 review of the career teacher program. The councilshallmust 192.33 meet at least two times each year with any established community 192.34 education advisory council in the district. Members of the 192.35 council may be members of the community education advisory 192.36 council. The councilshallmust report to the school board. 193.1 Sec. 88. Minnesota Statutes 1996, section 125.704, 193.2 subdivision 1, is amended to read: 193.3 Subdivision 1. [MANDATORY COMPONENTS.] A family 193.4 connections programshallmust include: 193.5 (1) participation by a designated individual as a career 193.6 teacher, principal-teacher, or counselor teacher; 193.7 (2) an emphasis on each individual child's unique learning 193.8 and development needs; 193.9 (3) procedures to give the career teacher a major 193.10 responsibility for leadership of the instructional and 193.11 noninstructional activities of each child beginning with early 193.12 childhood family education; 193.13 (4) procedures to involve parents in the learning and 193.14 development experiences of their children; 193.15 (5) procedures to implement outcome based education by 193.16 focusing on the needs of the learner; 193.17 (6) procedures to coordinate and integrate the 193.18 instructional program with all community education programs; 193.19 (7) procedures to concentrate career teacher programs at 193.20 sites that provide early childhood family education and 193.21 subsequent learning and development programs; and 193.22 (8) procedures for the district to fund the program. 193.23 Sec. 89. Minnesota Statutes 1996, section 125.705, 193.24 subdivision 1, is amended to read: 193.25 Subdivision 1. [STATUS.] A family connections program may 193.26 include a career teacher, principal-teacher, and counselor 193.27 teacher component. The career teacher, principal-teacher, and 193.28 counselor teachershallmust not be the exclusive teacher for 193.29 students assigned to them but shall serve as a primary teacher 193.30 and perform the function of developing and implementing a 193.31 student's overall learning and development program. The career 193.32 teacher, principal-teacher, and counselor teacher may be 193.33 responsible for regular assignments as well as learning and 193.34 development programs for other assigned students. 193.35 Sec. 90. Minnesota Statutes 1996, section 125.705, 193.36 subdivision 3, is amended to read: 194.1 Subd. 3. [STAFF/STUDENT RATIO.] (a) Except as provided in 194.2 clause (b), one career teacher, principal-teacher, or counselor 194.3 teacher shall be assigned for every 125 students. For each 194.4 special education student included in the assignment, the 1:125 194.5 ratioshallmust be reduced by one. 194.6 (b) One principal-teacher shall be assigned for every 50 194.7 students when the principal-teacher is also the principal of the 194.8 school. 194.9 Sec. 91. Minnesota Statutes 1996, section 125.705, 194.10 subdivision 4, is amended to read: 194.11 Subd. 4. [SELECTION; RENEWAL.] (a) Theschoolboard 194.12shallmust establish procedures for teachers, principals, and 194.13 counselors to apply for the position of career teacher, 194.14 principal-teacher, or counselor teacher. The authority for 194.15 selection of career teachers, principal-teachers, and counselor 194.16 teachersshall beis vested in the board and no individual shall 194.17 have a right to employment as a career teacher, 194.18 principal-teacher, or counselor teacher based on seniority or 194.19 order of employment in the district. 194.20 (b) Employment of the career teacher, principal-teacher, 194.21 and counselor teacher may be on a 12-month basis with vacation 194.22 time negotiated individually with the board. The annual 194.23 contract of a career teacher, principal-teacher, or counselor 194.24 teacher may not be renewed, as the board shall see fit;194.25provided, however,. The boardshallmust give anysuch194.26 teacher whose contract as a career teacher, principal-teacher, 194.27 or counselor teacher it declines to renew for the following year 194.28 written notice to that effect before April 15. If the board 194.29 fails to renew the contract of a career teacher, 194.30 principal-teacher, or counselor teacher, that individualshall194.31 must be reinstated to another position in the district if 194.32 eligible pursuant to section 125.12 or 125.17. 194.33 Sec. 92. Minnesota Statutes 1996, section 125.705, 194.34 subdivision 5, is amended to read: 194.35 Subd. 5. [DUTIES.] The career teacher, principal-teacher, 194.36 and counselor teachershall beis responsible for: 195.1 (1) the overall education, learning, and development plan 195.2 of assigned students.This plan shall be designed byThe career 195.3 teacher, principal-teacher, and counselor teacher must design 195.4 this plan with the student, parents, and other faculty, 195.5 andshallmust seek to maximize the learning and development 195.6 potential and maturation level of each pupil; 195.7 (2) measuring the proficiency of the assigned students and 195.8 assisting other staff in identifying pupil needs and making 195.9 appropriate educational and subject groupings; 195.10 (3) when part of the district's plan, taking responsibility 195.11 for the parent and early childhood education of assigned 195.12 students; 195.13 (4) designing and being responsible for program components 195.14 which meet special learning needs of high potential and talented 195.15 students; 195.16 (5) coordinating the ongoing, year-to-year learning and 195.17 development program for assigned students; and 195.18 (6) developing learning and development portfolios. 195.19 Sec. 93. Minnesota Statutes 1997 Supplement, section 195.20 126.77, subdivision 1, is amended to read: 195.21 Subdivision 1. [VIOLENCE PREVENTION CURRICULUM.] (a) The 195.22 commissioner of children, families, and learning, in 195.23 consultation with the commissioners of health and human 195.24 services, state minority councils, battered women's programs, 195.25 sexual assault centers, representatives of religious 195.26 communities, and the assistant commissioner of the office of 195.27 drug policy and violence prevention, shall assist districts on 195.28 request in developing or implementing a violence prevention 195.29 program for students in kindergarten to grade 12 that can be 195.30 integrated into existing curriculum. The purpose of the program 195.31 is to help students learn how to resolve conflicts within their 195.32 families and communities in nonviolent, effective ways. 195.33 (b) Each district is encouraged to integrate into its 195.34 existing curriculum a program for violence prevention that 195.35 includes at least: 195.36 (1) a comprehensive, accurate, and age appropriate 196.1 curriculum on violence prevention, nonviolent conflict 196.2 resolution, sexual, racial, and cultural harassment, and student 196.3 hazing that promotes equality, respect, understanding, effective 196.4 communication, individual responsibility, thoughtful decision 196.5 making, positive conflict resolution, useful coping skills, 196.6 critical thinking, listening and watching skills, and personal 196.7 safety; 196.8 (2) planning materials, guidelines, and other accurate 196.9 information on preventing physical and emotional violence, 196.10 identifying and reducing the incidence of sexual, racial, and 196.11 cultural harassment, and reducing child abuse and neglect; 196.12 (3) a special parent education component of early childhood 196.13 family education programs to prevent child abuse and neglect and 196.14 to promote positive parenting skills, giving priority to 196.15 services and outreach programs for at-risk families; 196.16 (4) involvement of parents and other community members, 196.17 including the clergy, business representatives, civic leaders, 196.18 local elected officials, law enforcement officials, and the 196.19 county attorney; 196.20 (5) collaboration with local community services, agencies, 196.21 and organizations that assist in violence intervention or 196.22 prevention, including family-based services, crisis services, 196.23 life management skills services, case coordination services, 196.24 mental health services, and early intervention services; 196.25 (6) collaboration among districts andSCsservice 196.26 cooperatives; 196.27 (7) targeting early adolescents for prevention efforts, 196.28 especially early adolescents whose personal circumstances may 196.29 lead to violent or harassing behavior; 196.30 (8) opportunities for teachers to receive in-service 196.31 training or attend other programs on strategies or curriculum 196.32 designed to assist students in intervening in or preventing 196.33 violence in school and at home; and 196.34 (9) administrative policies that reflect, and a staff that 196.35 models, nonviolent behaviors that do not display or condone 196.36 sexual, racial, or cultural harassment or student hazing. 197.1 (c) The department may provide assistance at a neutral site 197.2 to a nonpublic school participating in a district's program. 197.3 Sec. 94. Minnesota Statutes 1996, section 126.78, 197.4 subdivision 4, is amended to read: 197.5 Subd. 4. [GRANT PROCEEDS.] A successful applicant 197.6shallmust use the grant money to develop and implement or to 197.7 continue a violence prevention program according to the terms of 197.8 the grant application. 197.9 Sec. 95. Minnesota Statutes 1996, section 126.84, 197.10 subdivision 1, is amended to read: 197.11 Subdivision 1. [ESTABLISHMENT.] The commissioner of 197.12 children, families, and learning, in consultation with the 197.13 commissioner of human services, shall make male responsibility 197.14 and fathering grants to youth or parenting programs that 197.15 collaborate withschooldistricts to educate young people, 197.16 particularly males ages ten to 21, on the responsibilities of 197.17 parenthood. 197.18 Sec. 96. Minnesota Statutes 1996, section 126.84, 197.19 subdivision 3, is amended to read: 197.20 Subd. 3. [EXPECTED OUTCOMES.] Grant recipientsshallmust 197.21 use the funds for programs designed to prevent teen pregnancy 197.22 and to prevent crime in the long term. Recipient programs must 197.23 assist youth to: 197.24 (1) understand the connection between sexual behavior, 197.25 adolescent pregnancy, and the roles and responsibilities of 197.26 marriage and parenting; 197.27 (2) understand the long-term responsibility of fatherhood; 197.28 (3) understand the importance of fathers in the lives of 197.29 children; 197.30 (4) acquire parenting skills and knowledge of child 197.31 development; and 197.32 (5) find community support for their roles as fathers and 197.33 nurturers of children. 197.34 Sec. 97. Minnesota Statutes 1996, section 126.84, 197.35 subdivision 4, is amended to read: 197.36 Subd. 4. [GRANT APPLICATIONS.] (a) An application for a 198.1 grant may be submitted by a youth or parenting program whose 198.2 purpose is to reduce teen pregnancy or teach child development 198.3 and parenting skills in collaboration with aschooldistrict. 198.4 Each grant application must include a description of the 198.5 program's structure and components, including collaborative and 198.6 outreach efforts; an implementation and evaluation plan to 198.7 measure the program's success; a plan for using males as 198.8 instructors and mentors; and a cultural diversity plan to ensure 198.9 that staff or teachers will reflect the cultural backgrounds of 198.10 the population served and that the program content is culturally 198.11 sensitive. 198.12 (b) Grant recipients must, at a minimum, provide education 198.13 in responsible parenting and child development, responsible 198.14 decision-making related to marriage and relationships, and the 198.15 legal implications of paternity. Grant recipients also must 198.16 provide public awareness efforts in the collaborating school 198.17 district. Grant recipients may offer support groups, health and 198.18 nutrition education, and mentoring and peer teaching. 198.19 (c) A grant applicant must establish an advisory committee 198.20 to assist the applicant in planning and implementation of a 198.21 grant. The advisory committee must include student 198.22 representatives, adult males from the community, representatives 198.23 of community organizations, teachers, parent educators, and 198.24 representatives of family social service agencies. 198.25 Sec. 98. Minnesota Statutes 1996, section 126.84, 198.26 subdivision 5, is amended to read: 198.27 Subd. 5. [ADMINISTRATION.] The commissionerof children,198.28families, and learningshall administer male responsibility and 198.29 fathering grants. The commissioner shall establish a grant 198.30 review committee composed of teachers and representatives of 198.31 community organizations, student organizations, and education or 198.32 family social service agencies that offer parent education 198.33 programs. 198.34 Sec. 99. Minnesota Statutes 1996, section 126A.01, is 198.35 amended to read: 198.36 126A.01 [ENVIRONMENTAL EDUCATION GOALS AND PLAN.] 199.1 The environmental education program described in this 199.2chaptersection and section 126A.06 has these goals for the 199.3 pupils and other citizens of this state: 199.4 (a) Pupils and citizens should be able to apply informed 199.5 decision-making processes to maintain a sustainable lifestyle. 199.6 In order to do so, citizens should: 199.7 (1) understand ecological systems; 199.8 (2) understand the cause and effect relationship between 199.9 human attitudes and behavior and the environment; 199.10 (3) be able to evaluate alternative responses to 199.11 environmental issues before deciding on alternative courses of 199.12 action; and 199.13 (4) understand the effects of multiple uses of the 199.14 environment. 199.15 (b) Pupils and citizens shall have access to information 199.16 and experiences needed to make informed decisions about actions 199.17 to take on environmental issues. 199.18 (c) For the purposes of thischaptersection and section 199.19 126A.06, "state plan" means "Greenprint for Minnesota: A State 199.20 Plan for Environmental Education." 199.21 Sec. 100. Minnesota Statutes 1996, section 126B.01, 199.22 subdivision 2, is amended to read: 199.23 Subd. 2. [FUNDING.] Work-based learning programs 199.24 incorporating post-secondary instruction implemented under this 199.25chaptersection and sections 126B.03 to 126B.10 shall provide 199.26 for student funding according to section 123.3514. 199.27 Sec. 101. Minnesota Statutes 1996, section 126B.01, 199.28 subdivision 4, is amended to read: 199.29 Subd. 4. [PARTNERSHIP GRANTS.] The councilshallmust 199.30 award grants to implement local education and employment 199.31 transitionsystems to local education and employment transition199.32 partnerships established under section 126B.10. Grants under 199.33 this section may be used for the local education and employment 199.34 transitions system, youth apprenticeship and other work-based 199.35 learning programs, youth employer programs, youth 199.36 entrepreneurship programs, and other programs and purposes the 200.1 council determines fulfill the purposes of the education and 200.2 employment transitions system. The councilshallmust evaluate 200.3 grant proposals on the basis of the elements required in the 200.4 local plan described in section 126B.10, subdivision 3. The 200.5 councilshallmust develop and publicize the grant application 200.6 process and review and comment on the proposals submitted. 200.7 Priority in awarding grants must be given to local partnerships 200.8 that include multiple communities and a viable base of 200.9 educational, work-based learning, and employment opportunities. 200.10 Sec. 102. Minnesota Statutes 1996, section 126B.10, is 200.11 amended to read: 200.12 126B.10 [EDUCATION AND EMPLOYMENT TRANSITIONS 200.13 PARTNERSHIPS.] 200.14 Subdivision 1. [LOCAL PARTNERSHIPS; ESTABLISHMENT.] Local 200.15 education and employment transitions partnerships may be 200.16 established to implement local education and employment 200.17 transitions systems. Local partnershipsshallmust represent 200.18 multiple sectors in the community, including, at a minimum, 200.19 representatives of employers, primary and secondary education, 200.20 labor and professional organizations, workers, learners, 200.21 parents, community-based organizations, and to the extent 200.22 possible, post-secondary education. 200.23 Subd. 2. [BOARD.] A local education and employment 200.24 transitions partnershipshallmust establish a governing board 200.25 for planning and implementing work-based and other applied 200.26 learning programs. The boardshallmust consist of at least one 200.27 representative from each member of the education and employment 200.28 transitions partnership. A majority of the board must consist 200.29 of representatives of local or regional employers. 200.30 Subd. 3. [LOCAL EDUCATION AND EMPLOYMENT TRANSITIONS 200.31 SYSTEMS.] A local education and employment transitions 200.32 partnershipshallmust assess the needs of employers, employees, 200.33 and learners, and develop a plan for implementing and achieving 200.34 the objectives of a local or regional education and employment 200.35 transitions system. The planshallmust provide for a 200.36 comprehensive local system for assisting learners and workers in 201.1 making the transition from school to work or for retraining in a 201.2 new vocational area. The objectives of a local education and 201.3 employment transitions system include: 201.4 (1) increasing the effectiveness of the educational 201.5 programs and curriculum of elementary, secondary, and 201.6 post-secondary schools and the work site in preparing students 201.7 in the skills and knowledge needed to be successful in the 201.8 workplace; 201.9 (2) implementing learner outcomes for students in grades 201.10 kindergarten through 12 designed to introduce the world of work 201.11 and to explore career opportunities, including nontraditional 201.12 career opportunities; 201.13 (3) eliminating barriers to providing effective integrated 201.14 applied learning, service-learning, or work-based curriculum; 201.15 (4) increasing opportunities to apply academic knowledge 201.16 and skills, including skills needed in the workplace, in local 201.17 settings which include the school, school-based enterprises, 201.18 post-secondary institutions, the workplace, and the community; 201.19 (5) increasing applied instruction in the attitudes and 201.20 skills essential for success in the workplace, including 201.21 cooperative working, leadership, problem-solving, and respect 201.22 for diversity; 201.23 (6) providing staff training for vocational guidance 201.24 counselors, teachers, and other appropriate staff in the 201.25 importance of preparing learners for the transition to work, and 201.26 in methods of providing instruction that incorporate applied 201.27 learning, work-based learning, and service-learning experiences; 201.28 (7) identifying and enlisting local and regional employers 201.29 who can effectively provide work-based or service-learning 201.30 opportunities, including, but not limited to, apprenticeships, 201.31 internships, and mentorships; 201.32 (8) recruiting community and workplace mentors including 201.33 peers, parents, employers and employed individuals from the 201.34 community, and employers of high school students; 201.35 (9) identifying current and emerging educational, training, 201.36 and employment needs of the area or region, especially within 202.1 industries with potential for job growth; 202.2 (10) improving the coordination and effectiveness of local 202.3 vocational and job training programs, including vocational 202.4 education, adult basic education, tech prep, apprenticeship, 202.5 service-learning, youth entrepreneur, youth training and 202.6 employment programs administered by the commissioner of economic 202.7 security, and local job training programs under the Job Training 202.8 Partnership Act, United States Code, title 29, section 1501, et 202.9 seq.; 202.10 (11) identifying and applying for federal, state, local, 202.11 and private sources of funding for vocational or applied 202.12 learning programs; 202.13 (12) providing students with current information and 202.14 counseling about career opportunities, potential employment, 202.15 educational opportunities in post-secondary institutions, 202.16 workplaces, and the community, and the skills and knowledge 202.17 necessary to succeed; 202.18 (13) providing educational technology, including 202.19 interactive television networks and other distance learning 202.20 methods, to ensure access to a broad variety of work-based 202.21 learning opportunities; 202.22 (14) including students with disabilities in a district's 202.23 vocational or applied learning program and ways to serve at-risk 202.24 learners through collaboration with area learning centers under 202.25 sections 124C.45 to 124C.49, or other alternative programs; and 202.26 (15) providing a warranty to employers, post-secondary 202.27 education programs, and other post-secondary training programs, 202.28 that learners successfully completing a high school work-based 202.29 or applied learning program will be able to apply the knowledge 202.30 and work skills included in the program outcomes or graduation 202.31 requirements. The warranty shall require education and training 202.32 programs to continue to work with those learners that need 202.33 additional skill development until they can demonstrate 202.34 achievement of the program outcomes or graduation requirements. 202.35 Subd. 4. [ANNUAL REPORTS.] A local education and 202.36 employment transitions partnershipshallmust annually publish a 203.1 report and submit information to the council as required. The 203.2 reportshallmust include information required by the council 203.3 for the statewide system performance assessment. The 203.4 reportshallmust be available to the public in the communities 203.5 served by the local education and employment transitions 203.6 partnership. The reportshallmust be published no later than 203.7 September 1 of the year following the year in which the data was 203.8 collected. 203.9 Sec. 103. [REPEALER.] 203.10 Minnesota Statutes 1996, section 126.84, subdivision 6, is 203.11 repealed. 203.12 Sec. 104. [INSTRUCTION TO REVISOR.] 203.13 The revisor of statutes shall renumber each section of 203.14 Minnesota Statutes listed in column A with the number listed in 203.15 column B. The revisor shall also make necessary cross-reference 203.16 changes consistent with the renumbering. 203.17 Column A Column B 203.18 126A.01 115A.073 203.19 126A.06 115A.074 203.20 123.70 120C.05 203.21 123.701 120C.06 203.22 123.702, subd. 1 120C.07, subd. 1 203.23 subd. 1a subd. 2 203.24 subd. 1b subd. 3 203.25 subd. 2 subd. 4 203.26 subd. 3 subd. 5 203.27 subd. 4 subd. 6 203.28 subd. 4a subd. 7 203.29 subd. 5 subd. 8 203.30 subd. 6 subd. 9 203.31 subd. 7 subd. 10 203.32 123.704 120C.08 203.33 123.7045 120C.09 203.34 123.35, subd. 17 120C.11 203.35 126.202 120C.12 203.36 121.203 120C.13 204.1 121.831 120C.20 204.2 124.2615 120C.21 204.3 121.835 120C.22 204.4 121.882, subd. 1 120C.25, subd. 1 204.5 subd. 2 subd. 2 204.6 subd. 2a subd. 3 204.7 subd. 2b subd. 4 204.8 subd. 3 subd. 5 204.9 subd. 4 subd. 6 204.10 subd. 5 subd. 7 204.11 subd. 6 subd. 8 204.12 subd. 7 subd. 9 204.13 subd. 7a subd. 10 204.14 subd. 8 subd. 11 204.15 subd. 9 subd. 12 204.16 124.2711, subd. 1 120C.26, subd. 1 204.17 subd. 2 subd. 2 204.18 subd. 2a subd. 3 204.19 subd. 3 subd. 4 204.20 subd. 4 subd. 5 204.21 subd. 5 subd. 6 204.22 subd. 6 subd. 7 204.23 124.2712 120C.27 204.24 121.85 120C.30 204.25 121.88, subd. 1 120C.31, subd. 1 204.26 subd. 2 subd. 2 204.27 subd. 2a subd. 3 204.28 subd. 3 subd. 4 204.29 subd. 4 subd. 5 204.30 subd. 5 subd. 6 204.31 subd. 6 subd. 7 204.32 subd. 7 subd. 8 204.33 subd. 8 subd. 9 204.34 subd. 9 subd. 10 204.35 subd. 10 subd. 11 204.36 124.2713, subd. 1 120C.32, subd. 1 205.1 subd. 2 subd. 2 205.2 subd. 3 subd. 3 205.3 subd. 5 subd. 4 205.4 subd. 6 subd. 5 205.5 subd. 6a subd. 6 205.6 subd. 6b subd. 7 205.7 subd. 7 subd. 8 205.8 subd. 8 subd. 9 205.9 subd. 9 subd. 10 205.10 subd. 10 subd. 11 205.11 124.2714 120C.33 205.12 124.2716 120C.34 205.13 121.8355, subd. 1 120C.35, subd. 1 205.14 subd. 2 subd. 2 205.15 subd. 2a subd. 3 205.16 subd. 3 subd. 4 205.17 subd. 3a subd. 5 205.18 subd. 4 subd. 6 205.19 subd. 5 subd. 7 205.20 subd. 6 subd. 8 205.21 subd. 7 subd. 9 205.22 125.70 120C.37 205.23 125.701 120C.38 205.24 125.702 120C.39 205.25 125.703 120C.40 205.26 125.704 120C.41 205.27 125.705 120C.42 205.28 125.276, subd. 1 120C.43, subd. 1 205.29 subd. 2a subd. 2 205.30 subd. 3 subd. 3 205.31 subd. 4 subd. 4 205.32 124A.291 120C.44 205.33 126.77 120C.45 205.34 126.78 120C.46 205.35 126.79 120C.47 205.36 126.84 120C.48 206.1 121.615 120C.50 206.2 121.70 120C.51 206.3 121.701 120C.52 206.4 121.702 120C.53 206.5 121.704 120C.54 206.6 121.705 120C.55 206.7 121.706 120C.56 206.8 121.707 120C.57 206.9 121.708 120C.58 206.10 121.709 120C.59 206.11 121.710 120C.60 206.12 126B.01 120C.62 206.13 126B.03, subd. 2 120C.63, subd. 1 206.14 subd. 3 subd. 2 206.15 126B.06 120C.64 206.16 126B.10 120C.65 206.17 121.885 120C.67 206.18 123.35, subd. 8 120C.70 206.19 124.26, subd. 1b 120C.71, subd. 1 206.20 subd. 1c subd. 2 206.21 subd. 2 subd. 3 206.22 124.2601 120C.72 206.23 124.261 120C.73 206.24 124.2605 120C.74 206.25 124.2715 120C.76 206.26 121.201 120C.77 206.27 121.612 120C.82 206.28 124.255 120C.84 206.29 124C.10 120C.86 206.30 124C.11 120C.87 206.31 124C.12 120C.88 206.32 ARTICLE 4 206.33 CHAPTER 121A 206.34 STATE ADMINISTRATION 206.35 Section 1. Minnesota Statutes 1996, section 121.1115, 206.36 subdivision 1, is amended to read: 207.1 Subdivision 1. [EDUCATIONAL ACCOUNTABILITY AND PUBLIC 207.2 REPORTING.] Consistent with the state board of education process 207.3 to adopt a results-oriented graduation rule under section 207.4 121.11, subdivision 7c, the state boardof educationand the 207.5 departmentof children, families, and learning, in consultation 207.6 with education and other system stakeholders,shallmust 207.7 establish a coordinated and comprehensive system of educational 207.8 accountability and public reporting that promotes higher 207.9 academic achievement. 207.10 Sec. 2. Minnesota Statutes 1996, section 121.1115, 207.11 subdivision 2, is amended to read: 207.12 Subd. 2. [STATISTICAL ADJUSTMENTS.] In developing policies 207.13 and assessment processes to hold schools andschooldistricts 207.14 accountable for high levels of academic standards, including the 207.15 profile of learning, the commissioner shall aggregate student 207.16 data over time to report student performance levels measured at 207.17 the school district, regional, or statewide level. When 207.18 collecting and reporting the data, the commissioner shall: (1) 207.19 acknowledge the impact of significant demographic factors such 207.20 as residential instability, the number of single parent 207.21 families, parents' level of education, and parents' income level 207.22 on school outcomes; and (2) organize and report the data so that 207.23 state and local policymakers can understand the educational 207.24 implications of changes in districts' demographic profiles over 207.25 time. Any report the commissioner disseminates containing 207.26 summary data on student performance must integrate student 207.27 performance and the demographic factors that strongly correlate 207.28 with that performance. 207.29 Sec. 3. Minnesota Statutes 1996, section 124.078, is 207.30 amended to read: 207.31 124.078 [PERMANENT SCHOOL FUND ADVISORY COMMITTEE.] 207.32 A state permanent school fund advisory committee is 207.33 established to advise the department of natural resources on the 207.34 management of permanent school fund land, which is held in trust 207.35 for the school districts of the state. The advisory committee 207.36shallmust consist of the following persons or their designees: 208.1 the chairs of the education committees of the legislature, the 208.2 chairs of the senate committee on finance and house committee on 208.3 ways and means, the commissioner of children, families, and 208.4 learning, one superintendent from a nonmetropolitan district, 208.5 and one superintendent from a metropolitan area district. The 208.6 school district superintendents shall be appointed by the 208.7 commissioner of children, families, and learning. 208.8 The advisory committee shall review the policies of the 208.9 department of natural resources on management of school trust 208.10 fund lands and shall recommend necessary changes in policy and 208.11 implementation in order to ensure provident utilization of the 208.12 permanent school fund lands. 208.13 Sec. 4. Minnesota Statutes 1996, section 124.08, is 208.14 amended to read: 208.15 124.08 [SCHOOL ENDOWMENT FUND,; DESIGNATION.] 208.16 For the purpose of aid to public schools, a school 208.17 endowment fund is established. 208.18 The school endowment fund shall consist of the income from 208.19 the permanent school fund. The commissionerof children,208.20families, and learningmay accept for and on behalf of the 208.21 permanent school fund a donation of cash, marketable securities, 208.22 or other personal property. A noncash donation, other than a 208.23 donation of marketable securities, must be disposed of for cash 208.24 as soon as the commissioner can obtain fair market value for the 208.25 donation. Marketable securities may be disposed of at the 208.26 discretion of the state board of investment consistent with 208.27 sections 11A.16 and 11A.24. A cash donation and the cash 208.28 receipts from a donation disposed of for cash must be credited 208.29 immediately to the permanent school fund. Earnings from 208.30 marketable securities are earnings of the permanent school fund. 208.31 Sec. 5. Minnesota Statutes 1996, section 124.09, is 208.32 amended to read: 208.33 124.09 [SCHOOL ENDOWMENT FUND,; APPORTIONMENT.] 208.34 The commissioner shall apportion the school endowment fund 208.35shall be apportionedsemiannuallyby the commissioner,on the 208.36 first Monday in March and September in each year, to districts 209.1 whose schools have been in session at least nine months. The 209.2 apportionment shall be in proportion to the number of pupils in 209.3 average daily membership during the preceding year; provided,209.4that. The apportionment shall not be paid to a district for 209.5 pupils for whom tuition is received by the district. 209.6 Sec. 6. Minnesota Statutes 1996, section 124.10, 209.7 subdivision 1, is amended to read: 209.8 Subdivision 1. [COPY TO COMMISSIONER OF FINANCE.] The 209.9 commissioner shall furnish a copy of the apportionment of the 209.10 school endowment fundshall be furnished by the commissionerto 209.11 the commissioner of finance, who thereupon shall draw warrants 209.12 on the state treasury, payable to the several districts, for the 209.13 amount due each district. There is hereby annually appropriated 209.14 from the school endowment fund the amount of such apportionments. 209.15 Sec. 7. Minnesota Statutes 1996, section 124.10, 209.16 subdivision 2, is amended to read: 209.17 Subd. 2. [APPORTIONMENTS TO DISTRICTS.] The county auditor 209.18 each year shall apportion to theschooldistricts within the 209.19 county the amount received from power line taxes under section 209.20 273.42, liquor licenses, fines, estrays, and other sources 209.21 belonging to the general fund. The apportionmentsshallmust be 209.22 made in proportion to each district's net tax capacity within 209.23 the county in the prior year. The apportionmentsshallmust be 209.24 made and amounts distributed to theschooldistricts at the 209.25 times provided for the settlement and distribution of real and 209.26 personal property taxes under sections 276.09, 276.11, and 209.27 276.111, except that all of the power line taxes apportioned to 209.28 aschooldistrict from the county school fundshallmust be 209.29 included in the first half distribution of property taxes to the 209.30schooldistrict. No district shall receive any part of the 209.31 money received from liquor licenses unless all sums paid for 209.32 such licenses in such district are apportioned to the county 209.33 school fund. 209.34 Sec. 8. Minnesota Statutes 1996, section 124.12, is 209.35 amended to read: 209.36 124.12 [MANNER OF PAYMENT OF STATE AIDS.] 210.1Subd. 2.It shall be the duty of the commissionerof210.2children, families, and learningto deliver to the commissioner 210.3 of finance a certificate for each district entitled to receive 210.4 state aid under the provisions of this chapter. Upon the 210.5 receipt of such certificate, it shall be the duty of the 210.6 commissioner of finance to draw a warrant upon the state 210.7 treasurer in favor of the district for the amount shown by each 210.8 certificate to be due to the district. The commissioner of 210.9 finance shall transmit such warrants to the district together 210.10 with a copy of the certificate prepared by the commissioner. 210.11 Sec. 9. Minnesota Statutes 1996, section 124.14, 210.12 subdivision 2, is amended to read: 210.13 Subd. 2. [ERRORS IN DISTRIBUTION.] On determining that the 210.14 amount of state aid distributed to a school district is in 210.15 error, the commissioner is authorized to adjust the amount of 210.16 aid consistent with this subdivision. On determining that the 210.17 amount of aid is in excess of the school district's entitlement, 210.18 the commissioner is authorized to recover the amount of the 210.19 excess by any appropriate means. Notwithstanding the fiscal 210.20 years designated by the appropriation, the excess may be 210.21 recovered by reducing future aid payments to theschool210.22 district. Notwithstanding any law to the contrary, if the aid 210.23 reduced is not of the same type as that overpaid, theschool210.24 districtshallmust adjust all necessary financial accounts to 210.25 properly reflect all revenues earned in accordance with the 210.26 uniform financial accounting and reporting standards pursuant to 210.27 sections 121.904 to 121.917. Notwithstanding the fiscal years 210.28 designated by the appropriation, on determining that the amount 210.29 of an aid paid is less than the school district's entitlement, 210.30 the commissioner is authorized to increase such aid from the 210.31 current appropriation. 210.32 Sec. 10. Minnesota Statutes 1996, section 124.14, 210.33 subdivision 3, is amended to read: 210.34 Subd. 3. [AUDITS.] The commissioner shall establish 210.35 procedures for conducting and shall conduct audits ofschool210.36 district records and files for the purpose of verifyingschool211.1 district pupil counts, levy limitations, and aid entitlements. 211.2 The commissioner shall establish procedures for selecting and 211.3 shall select districts to be audited. Disparities, if any, 211.4 between pupil counts, levy limitations, or aid entitlements 211.5 determined by audit ofschooldistrict records and files and 211.6 data reported byschooldistricts in reports, claims and other 211.7 documents shall be reviewed by the commissioner who shall order 211.8 increases or decreases accordingly. Whenever possible, the 211.9 commissioner shall audit at least 25 districts each year 211.10 pursuant to this subdivision. 211.11 Sec. 11. Minnesota Statutes 1996, section 124.14, 211.12 subdivision 3a, is amended to read: 211.13 Subd. 3a. [LESS THAN 25 DISTRICTS AUDITED.] If the 211.14 commissioner audits fewer than 25schooldistricts in a fiscal 211.15 year pursuant to subdivision 3, the commissioner shall report 211.16 the reasons for the number audited to the following legislative 211.17 committees: house education, house appropriations, senate 211.18 education, and senate finance. 211.19 Sec. 12. Minnesota Statutes 1996, section 124.14, 211.20 subdivision 4, is amended to read: 211.21 Subd. 4. [FINAL DECISION AND RECORDS.] A reduction of aid 211.22 under this section may be appealed to the state board of 211.23 education and its decision shall be final. Public schools shall 211.24 at all times be open to the inspection of the commissioner, and. 211.25 The accounts and records of any districtshallmust be open to 211.26 inspection by the state auditor, the state board, or the 211.27 commissioner for the purpose of audits conducted under this 211.28 section. Each district shall keep for a minimum of three years 211.29 at least the following: (1) identification of the annual 211.30 session days held, together with a record of the length of each 211.31 session day, (2) a record of each pupil's daily attendance, with 211.32 entrance and withdrawal dates, and (3) identification of the 211.33 pupils transported who are reported for transportation aid. 211.34 Sec. 13. Minnesota Statutes 1996, section 124.14, 211.35 subdivision 6, is amended to read: 211.36 Subd. 6. [ADJUSTMENT APPROPRIATION.] There is annually 212.1 appropriated from the general fund to the departmentof212.2children, families, and learningany additional amounts 212.3 necessary for the adjustments made pursuant to section 124.155, 212.4 subdivision 1. 212.5 Sec. 14. Minnesota Statutes 1996, section 124.14, 212.6 subdivision 7, is amended to read: 212.7 Subd. 7. [APPROPRIATION TRANSFERS.] If a direct 212.8 appropriation from the general fund to the departmentof212.9children, families, and learningfor any education aid or grant 212.10 authorized in this chapter and chapters 121, 123, 124A, 124C, 212.11 125, 126, and 134 exceeds the amount required, the commissioner 212.12of children, families, and learningmay transfer the excess to 212.13 any education aid or grant appropriation that is insufficient. 212.14 However, section 124A.032 applies to a deficiency in the direct 212.15 appropriation for general education aid. Excess appropriations 212.16shallmust be allocated proportionately among aids or grants 212.17 that have insufficient appropriations. The commissioner of 212.18 finance shall make the necessary transfers among appropriations 212.19 according to the determinations of the commissionerof children,212.20families, and learning. If the amount of the direct 212.21 appropriation for the aid or grant plus the amount transferred 212.22 according to this subdivision is insufficient, the commissioner 212.23 shall prorate the available amount among eligible districts. 212.24 The state is not obligated for any additional amounts. 212.25 Sec. 15. Minnesota Statutes 1996, section 124.14, 212.26 subdivision 8, is amended to read: 212.27 Subd. 8. [HEALTH AND SAFETY AID TRANSFER.] The 212.28 commissionerof children, families, and learning, with the 212.29 approval of the commissioner of finance, annually may transfer 212.30 an amount from the appropriation for health and safety aid to 212.31 the appropriation for debt service aid for the same fiscal 212.32 year. The amount of the transfer equals the amount necessary to 212.33 fund any shortage in the debt service aid appropriation created 212.34 by a data correction that occurs between November 1 and June 30 212.35 of the preceding fiscal year. 212.36 Sec. 16. Minnesota Statutes 1996, section 124.15, 213.1 subdivision 2, is amended to read: 213.2 Subd. 2. [VIOLATIONS OF LAW.] The commissioner shall 213.3 reduce the district's special state aid for any school year 213.4 whenever the board of the district authorizes or permitswithin213.5the districtviolations of law within the district by: 213.6 (1)employment in a public school of the district of213.7 employing a teacher who does not hold a valid teaching license 213.8 or permit, orin a public school; 213.9 (2) noncompliance with a mandatory rule of general 213.10 application promulgated by the state board in accordance with 213.11 statutein the absence of, unless special circumstances 213.12makingmake enforcementthereofinequitable,contrary to the213.13best interest of, or imposingimpose an extraordinary hardship 213.14 on,the districtaffected, or, or the rule is contrary to the 213.15 district's best interests; 213.16 (3) the district's continued performanceby the districtof 213.17 a contract made for the rental of rooms or buildings for school 213.18 purposes or for the rental of any facility owned or operated by 213.19 or under the direction of any private organization,whichif the 213.20 contract has been disapprovedwhere, the time for review of the 213.21 determination of disapproval has expired, and no proceeding for 213.22 review is pending, or; 213.23 (4) any practice which is a violation of sections 1 and 2 213.24 of article 13 of the Constitution of the state of Minnesota, or; 213.25 (5) failure toprovidereasonably provide forthea 213.26 resident pupil's school attendanceto which a resident pupil is213.27entitledunder Minnesota Statutes,; or 213.28 (6) noncompliance with state laws prohibiting 213.29 discrimination because of race, color, creed, religion, national 213.30 origin, sex, age, marital status, status with regard to public 213.31 assistance or disability, as defined in section 363.03,. 213.32the special state aid to which a district is otherwise entitled213.33for any school year shall be reducedThe reduction must be made 213.34 in the amount and upon the procedure provided in this section 213.35 or, in the case of the violation stated in clause (1), upon the 213.36 procedure provided in section 124.19, subdivision 3. 214.1 Sec. 17. Minnesota Statutes 1996, section 124.15, 214.2 subdivision 2a, is amended to read: 214.3 Subd. 2a. [ASSURANCE OF COMPLIANCE.] After consultation 214.4 with the commissioner of human rights, the state board of 214.5 education shall adopt rules in conformance with chapter 214.6 14which. The rules must directschooldistricts to file with 214.7 the commissioner of children, families, and learning assurances 214.8 of compliance with state and federal laws prohibiting 214.9 discrimination andwhichspecify the information required to be 214.10 submitted in support of the assurances. The commissionerof214.11children, families, and learningshall provide copies of the 214.12 assurances and the supportive information to the commissioner of 214.13 human rights. If, after reviewing the assurances and the 214.14 supportive information it appears that one or more violations of 214.15 the Minnesota human rights act are occurring in the district, 214.16 the commissioner of human rights shall notify the commissioner 214.17of children, families, and learningof the violations, and the 214.18 commissioner of children, families, and learning may then 214.19 proceed pursuant to subdivision 3. 214.20 Sec. 18. Minnesota Statutes 1996, section 124.15, 214.21 subdivision 3, is amended to read: 214.22 Subd. 3. [NOTICE TO BOARD.] When it appears thatone or214.23more of the violationsan enumerated violation is occurring in a 214.24 district, the commissioner shallforthwithnotify the board of 214.25 that district in writingthereof.SuchThe noticeshallmust 214.26 specify the violations, set a reasonable time within which the 214.27 districtshallmust correct the specified violations, describe 214.28 the correction required, and advise that if the correction is 214.29 not made within the time allowed, special state aids to the 214.30 district will be reduced. The time allowed for correction may 214.31 be extended by the commissioner if there is reasonable ground 214.32 therefor. 214.33 Sec. 19. Minnesota Statutes 1996, section 124.15, 214.34 subdivision 4, is amended to read: 214.35 Subd. 4. [DISPUTE VIOLATIONS; HEARING.] The board to which 214.36 such notice is given may, by a majority vote of the whole board, 215.1 decide to dispute that the specified violation exists or that 215.2 the time allowed is reasonable or the correction specified is 215.3 correct, or that the commissioner may reduce aids, in which case215.4written notice of such decision shall be given. The board must 215.5 give the commissioner written notice of the decision. If the 215.6 commissioner, aftersuchfurther investigation as the 215.7 commissioner deems necessary, adheres to the previous notice, 215.8suchthe board shall be entitled to a hearing by the state board 215.9, in which event a. The state board must set a hearing time and 215.10 placeshall be set therefor and noticeand the board of the 215.11 district must be given notice by mailto the board of the215.12district. The state boardshallmust adopt rules governing the 215.13 proceedings for hearingswhich shall. The hearings must be 215.14 designed to give a full and fair hearing and permit interested 215.15 parties an opportunity to produce evidence relating to the 215.16 issues involved.SuchThe rules may provide that any question 215.17 of fact to be determinedupon such reviewat the hearing may be 215.18 referred to one or more members of the board or to an employee 215.19 of the state board acting as a referee to hear evidence and 215.20 reportto the state boardthe testimony taken to the state board. 215.21 The state board, oranya person designated to receive evidence 215.22upon a review under this actat a hearing, shall have the same 215.23 right to issue subpoenas and administer oaths and parties to the 215.24reviewhearing shall have the same right to subpoenas issued as 215.25 areaccorded with respect toallowed for proceedings before the 215.26 industrial commission.There shall beA stenographic 215.27 record must be made of all testimony given and other proceedings 215.28 duringsuchthe hearing, and as far as. If practicable, rules 215.29 governing reception of evidence in courts shallobtainapply to 215.30 the hearing. The decision of the state boardshallmust be in 215.31 writing and the controlling facts upon which the decision is 215.32 madeshallmust be stated in sufficient detail to apprise the 215.33 parties and the reviewing court the basis and reason of the 215.34 decision. The decisionshallmust be confined to whether or not 215.35 the specified violations or any of them existed at the date of 215.36 the commissioner's first notice, whethersuchthe violationsas216.1did existwere corrected within the time permitted, and whether 216.2suchthe violations require reduction of the state aids under 216.3 this section. 216.4 Sec. 20. Minnesota Statutes 1996, section 124.15, 216.5 subdivision 5, is amended to read: 216.6 Subd. 5. [VIOLATION; AID REDUCTION.] The commissioner 216.7 shall not reduce state aids payable to the district if the 216.8 violation specified is corrected within the time permitted, or 216.9 if the commissioner on being notified of the district board's 216.10 decision to dispute decides the violation does not exist, or if 216.11 the state board decides after hearing no violation specified in 216.12 the commissioner's notice existed at the time ofitthe notice, 216.13 or thatany that existedthe violations were corrected within 216.14 the time permitted, there shall be no reduction of state aids216.15payable to the school district. Otherwise state aids payable to 216.16 the district for the year in which the violation occurred shall 216.17 be reduced as follows: The total amount of state aids to which 216.18 the district may be entitled shall be reduced in the proportion 216.19 that the period during which a specified violation continued, 216.20 computed from the last day of the time permitted for correction, 216.21 bears to the total number of days school is held in the district 216.22 during the year in which a violation exists, multiplied by 60 216.23 percent of the basic revenue, as defined in section 124A.22, 216.24 subdivision 2, of the district for that year. 216.25 Sec. 21. Minnesota Statutes 1996, section 124.15, 216.26 subdivision 6, is amended to read: 216.27 Subd. 6. [REDUCTION IN AIDS PAYABLE.] Reductions in aid 216.28 under this section and section 124.19shallmust be from general 216.29 education aid. If there is not sufficient general education aid 216.30 remaining to be paid for the school year in which the violation 216.31 occurred, the reduction shall be from the other aids listed in 216.32 section 124.155, subdivision 2, that are payable to the district 216.33 for that year in the order in which the aids are listed in 216.34 section 124.155, subdivision 2. If there is not a sufficient 216.35 amount of state aids remaining payable to the district for the 216.36 school year in which the violation occurred to permit the full 217.1 amount of reduction required, that part of the required 217.2 reduction not taken from that school year's aids will be taken 217.3 from the state aids payable to the district for the next school 217.4 year, and the reduction will be made from the various aids 217.5 payable for the next year in the order above specified. 217.6 Sec. 22. Minnesota Statutes 1996, section 124.15, 217.7 subdivision 8, is amended to read: 217.8 Subd. 8. [NOTICE TO DISTRICT.] Any noticeto begiven to 217.9 the board of a district will be deemed given when a copy thereof 217.10 is mailed, registered, to the superintendent of the district, if 217.11 there is a superintendent, and to the clerk of the board of the 217.12 district, unless. If it is shown that neither the 217.13 superintendent nor the clerk in fact received such notice in the 217.14 ordinary course of mail,in which eventthen the time for 217.15 correction will be accordingly extended by the commissioner so 217.16 that a reasonable time will be allowed from actual receipt of 217.17 notice for correction. If notice is sent by the commissioner 217.18 with respect to a violation which is continued by the district 217.19 in a succeeding year, no separate notice for that violation for 217.20 the succeeding year will be required. Proceedings initiated by 217.21 such notice shall include any continuing violation 217.22 notwithstanding that a part thereof occurs in a year different 217.23 fromthatthe year in which it started. The commissioner may 217.24 require reasonable proof of the time that a violation ceased for 217.25 the determination of the amount of aids to be withheld. Costs 217.26 and disbursements of the review by the district court, exclusive 217.27 of those incurred in the administrative proceedings, may be 217.28 taxed against the losing party and in the event taxed against 217.29 the stateshallmust be paid from the appropriations made to the 217.30 department for the payment of special state aids. 217.31 Sec. 23. Minnesota Statutes 1997 Supplement, section 217.32 124.155, subdivision 1, is amended to read: 217.33 Subdivision 1. [AMOUNT OF ADJUSTMENT.] Each year state 217.34 aids and credits enumerated in subdivision 2 payable to any 217.35schooldistrict for that fiscal year shall be adjusted, in the 217.36 order listed, by an amount equal to (1) the amount the district 218.1 recognized as revenue for the prior fiscal year pursuant to 218.2 section 121.904, subdivision 4a, clause (b), minus (2) the 218.3 amount the district recognizes as revenue for the current fiscal 218.4 year pursuant to section 121.904, subdivision 4a, clause (b). 218.5 For the purposes of making the aid adjustment under this 218.6 subdivision, the amount the district recognizes as revenue for 218.7 either the prior fiscal year or the current fiscal year pursuant 218.8 to section 121.904, subdivision 4a, clause (b), shall not 218.9 include any amount levied pursuant to sections 124.315, 218.10 subdivision 4, 124.912, subdivisions 1, paragraph (2), 2, and 3, 218.11 124.916, subdivisions 1, 2, and 3, paragraphs 4, 5, and 6, 218.12 124.918, subdivision 6, and 124A.03, subdivision 2. Payment 218.13 from the permanent school fund shall not be adjusted pursuant to 218.14 this section. The school district shall be notified of the 218.15 amount of the adjustment made to each payment pursuant to this 218.16 section. 218.17 Sec. 24. Minnesota Statutes 1997 Supplement, section 218.18 124.155, subdivision 2, is amended to read: 218.19 Subd. 2. [ADJUSTMENT TO AIDS.] (a) The amount specified in 218.20 subdivision 1 shall be used to adjust the following state aids 218.21 and credits in the order listed: 218.22 (1) general education aid authorized in section 124A.23; 218.23 (2) secondary vocational aid authorized in section 124.573; 218.24 (3) special education aid authorized in sections 124.32 and 218.25 124.3201; 218.26 (4) school-to-work program aid for children with a 218.27 disability authorized in section 124.574; 218.28 (5) aid for pupils of limited English proficiency 218.29 authorized in section 124.273; 218.30 (6) transportation aid authorized in section 124.225; 218.31 (7) community education programs aid authorized in section 218.32 124.2713; 218.33 (8) adult education aid authorized in section 124.26; 218.34 (9) early childhood family education aid authorized in 218.35 section 124.2711; 218.36 (10) capital expenditure aid authorized in section 124.83; 219.1 (11) school district cooperation aid authorized in section 219.2 124.2727; 219.3 (12) assurance of mastery aid according to section 124.311; 219.4 (13) homestead and agricultural credit aid, disparity 219.5 credit and aid, and changes to credits for prior year 219.6 adjustments according to section 273.1398, subdivisions 2, 3, 4, 219.7 and 7; 219.8 (14) attached machinery aid authorized in section 273.138, 219.9 subdivision 3; 219.10 (15) alternative delivery aid authorized in section 219.11 124.322; 219.12 (16) special education equalization aid authorized in 219.13 section 124.321; 219.14 (17) special education excess cost aid authorized in 219.15 section 124.323; 219.16 (18) learning readiness aid authorized in section 124.2615; 219.17 and 219.18 (19) cooperation-combination aid authorized in section 219.19 124.2725. 219.20 (b) The commissionerof children, families, and learning219.21 shall schedule the timing of the adjustments to state aids and 219.22 credits specified in subdivision 1, as close to the end of the 219.23 fiscal year as possible. 219.24 Sec. 25. Minnesota Statutes 1996, section 124.195, 219.25 subdivision 1, is amended to read: 219.26 Subdivision 1. [APPLICABILITY.] This section applies to 219.27 all aids or credits paid by the commissionerof children,219.28families, and learningfrom the general fund toschooldistricts. 219.29 Sec. 26. Minnesota Statutes 1997 Supplement, section 219.30 124.195, subdivision 2, is amended to read: 219.31 Subd. 2. [DEFINITIONS.] (a) The term "other district 219.32 receipts" means payments by county treasurers pursuant to 219.33 section 276.10, apportionments from the school endowment fund 219.34 pursuant to section 124.09, apportionments by the county auditor 219.35 pursuant to section 124.10, subdivision 2, and payments to 219.36 school districts by the commissioner of revenue pursuant to 220.1 chapter 298. 220.2 (b) The term "cumulative amount guaranteed" means the sum 220.3 of the following: 220.4 (1) one-third of the final adjustment payment according to 220.5 subdivision 6; plus 220.6 (2) the product of 220.7 (i) the cumulative disbursement percentage shown in 220.8 subdivision 3; times 220.9 (ii) the sum of 220.10 90 percent of the estimated aid and credit entitlements 220.11 paid according to subdivision 10; plus 220.12 100 percent of the entitlements paid according to 220.13 subdivisions 8 and 9; plus 220.14 the other district receipts; plus 220.15 the final adjustment payment according to subdivision 6. 220.16 (c) The term "payment date" means the date on which state 220.17 payments toschooldistricts are made by the electronic funds 220.18 transfer method. If a payment date falls on a Saturday, a 220.19 Sunday, or a weekday which is a legal holiday, the payment shall 220.20 be made on the immediately following business day. The 220.21 commissionerof children, families, and learningmay make 220.22 payments on dates other than those listed in subdivision 3, but 220.23 only for portions of payments from any preceding payment dates 220.24 which could not be processed by the electronic funds transfer 220.25 method due to documented extenuating circumstances. 220.26 Sec. 27. Minnesota Statutes 1996, section 124.195, 220.27 subdivision 3, is amended to read: 220.28 Subd. 3. [PAYMENT DATES AND PERCENTAGES.] The commissioner 220.29of children, families, and learningshall pay to aschool220.30 district on the dates indicated an amount computed as follows: 220.31 the cumulative amount guaranteed minus the sum of (a) the 220.32 district's other district receipts through the current payment, 220.33 and (b) the aid and credit payments through the immediately 220.34 preceding payment. For purposes of this computation, the 220.35 payment dates and the cumulative disbursement percentages are as 220.36 follows: 221.1 Payment date Percentage 221.2 Payment 1 July 15: 2.25 221.3 Payment 2 July 30: 4.50 221.4 Payment 3 August 15: the greater of (a) the final 221.5 adjustment for the prior fiscal year for 221.6 the state paid property tax credits 221.7 established in section 273.1392, or 221.8 (b) the amount needed to provide 6.75 percent 221.9 Payment 4 August 30: 9.0 221.10 Payment 5 September 15: 12.75 221.11 Payment 6 September 30: 16.50 221.12 Payment 7 October 15: the greater of (a) one-half of 221.13 the final adjustment for the prior fiscal year 221.14 for all aid entitlements except state paid 221.15 property tax credits, or (b) the amount needed to 221.16 provide 20.75 percent 221.17 Payment 8 October 30: the greater of (a) one-half of the 221.18 final adjustment for the prior fiscal year for all 221.19 aid entitlements except state paid property 221.20 tax credits, or (b) the amount needed 221.21 to provide 25.0 percent 221.22 Payment 9 November 15: 31.0 221.23 Payment 10 November 30: 37.0 221.24 Payment 11 December 15: 40.0 221.25 Payment 12 December 30: 43.0 221.26 Payment 13 January 15: 47.25 221.27 Payment 14 January 30: 51.5 221.28 Payment 15 February 15: 56.0 221.29 Payment 16 February 28: 60.5 221.30 Payment 17 March 15: 65.25 221.31 Payment 18 March 30: 70.0 221.32 Payment 19 April 15: 73.0 221.33 Payment 20 April 30: 79.0 221.34 Payment 21 May 15: 82.0 221.35 Payment 22 May 30: 90.0 221.36 Payment 23 June 20: 100.0 222.1 Sec. 28. Minnesota Statutes 1996, section 124.195, 222.2 subdivision 3a, is amended to read: 222.3 Subd. 3a. [APPEAL.] The commissioner, in consultation with 222.4 the commissioner of finance, may revise the payment dates and 222.5 percentages in subdivision 3 for a district if it is determined 222.6 that there is an emergency or there are serious cash flow 222.7 problems in the district that cannot be resolved by issuing 222.8 warrants or other forms of indebtedness. The commissioner shall 222.9 establish a process and criteria forschooldistricts to appeal 222.10 the payment dates and percentages established in subdivision 3. 222.11 Sec. 29. Minnesota Statutes 1996, section 124.195, 222.12 subdivision 3b, is amended to read: 222.13 Subd. 3b. [CASH FLOW ADJUSTMENT.] During each year in 222.14 which the cash flow low points for August, September, and 222.15 October estimated by the commissioner of finance for invested 222.16 treasurer's cash exceeds $360,000,000, the commissionerof222.17children, families, and learningshall increase the cumulative 222.18 disbursement percentages established in subdivision 3 to the 222.19 following amounts: 222.20 Payment 3 August 15: 12.75 percent 222.21 Payment 4 August 30: 15.00 percent 222.22 Payment 5 September 15: 17.25 percent 222.23 Payment 6 September 30: 19.50 percent 222.24 Payment 7 October 15: 21.75 percent 222.25 Sec. 30. Minnesota Statutes 1996, section 124.195, 222.26 subdivision 4, is amended to read: 222.27 Subd. 4. [PAYMENT LIMIT.] Subdivision 3 does not authorize 222.28 the commissionerof children, families, and learningto pay to a 222.29 district's operating funds an amount of state general fund cash 222.30 that exceeds the sum of: 222.31 (a) its estimated aid and credit payments for the current 222.32 year according to subdivision 10; 222.33 (b) its actual aid payments according to subdivisions 8 and 222.34 9; and 222.35 (c) the final adjustment payment for the prior year. 222.36 Sec. 31. Minnesota Statutes 1996, section 124.195, 223.1 subdivision 5, is amended to read: 223.2 Subd. 5. [COMMISSIONER'S ASSUMPTIONS.] For purposes of 223.3 determining the amount of state general fund cash to be paid to 223.4schooldistricts pursuant to subdivision 3, the commissionerof223.5children, families, and learningshall: 223.6(a)(1) assume that the payments to school districts by the 223.7 county treasurer of revenues accruing to the fiscal year of 223.8 receipt pursuant to section 276.11 are made in the following 223.9 manner: 223.10(1)(i) 50 percent within seven business days of each due 223.11 date; and 223.12(2)(ii) 100 percent within 14 business days of each due 223.13 date; 223.14(b)(2) assume that the payments toschooldistricts by the 223.15 county treasurer of revenues accruing to the fiscal year of 223.16 receipt pursuant to section 276.111 are made in the following 223.17 manner: 223.18(1)(i) 50 percent within seven business days of the 223.19 October 15 due date; 223.20(2)(ii) 100 percent within 14 business days of the October 223.21 15 due date; and 223.22(3)(iii) 100 percent within ten business days of the 223.23 November 15 due date.; and 223.24(c)(3) assume that the payments to school districts by 223.25 county auditors pursuant to section 124.10, subdivision 2, are 223.26 made at the end of the months indicated in that subdivision. 223.27 Sec. 32. Minnesota Statutes 1996, section 124.195, 223.28 subdivision 6, is amended to read: 223.29 Subd. 6. [FINAL ADJUSTMENT PAYMENT.] For all aids and 223.30 credits paid according to subdivision 10, the final adjustment 223.31 paymentshallmust include the amounts necessary to pay the 223.32 district's full aid entitlement for the prior year based on 223.33 actual data. This paymentshallmust be used to correct all 223.34 estimates used for the payment schedule in subdivision 3. The 223.35 paymentshallmust be made as specified in subdivision 3. In 223.36 the event actual data are not available, the final adjustment 224.1 payment may be computed based on estimated data. A corrected 224.2 final adjustment paymentshallmust be made when actual data are 224.3 available. 224.4 Sec. 33. Minnesota Statutes 1997 Supplement, section 224.5 124.195, subdivision 7, is amended to read: 224.6 Subd. 7. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 224.7 fiscal year state general fund payments for a district 224.8 nonoperating fundshallmust be made at 90 percent of the 224.9 estimated entitlement during the fiscal year of the 224.10 entitlement. This amount shall be paid in 12 equal monthly 224.11 installments. The amount of the actual entitlement, after 224.12 adjustment for actual data, minus the payments made during the 224.13 fiscal year of the entitlementshallmust be paid prior to 224.14 October 31 of the following school year. The commissioner may 224.15 make advance payments of homestead and agricultural credit aid 224.16 for a district's debt service fund earlier than would occur 224.17 under the preceding schedule if the district submits evidence 224.18 showing a serious cash flow problem in the fund. The 224.19 commissioner may make earlier payments during the year and, if 224.20 necessary, increase the percent of the entitlement paid to 224.21 reduce the cash flow problem. 224.22 Sec. 34. Minnesota Statutes 1997 Supplement, section 224.23 124.195, subdivision 10, is amended to read: 224.24 Subd. 10. [AID PAYMENT PERCENTAGE.] Except as provided in 224.25 subdivisions 8, 9, and 11, each fiscal year, all education aids 224.26 and credits in this chapter and chapters121,123, 124A, 224.27 124B, 124D, 125, 126, 134, and section 273.1392, shall be paid 224.28 at 90 percent of the estimated entitlement during the fiscal 224.29 year of the entitlement. The final adjustment payment, 224.30 according to subdivision 6,shallmust be the amount of the 224.31 actual entitlement, after adjustment for actual data, minus the 224.32 payments made during the fiscal year of the entitlement. 224.33 Sec. 35. Minnesota Statutes 1996, section 124.195, 224.34 subdivision 14, is amended to read: 224.35 Subd. 14. [EDUCATION AIDS CASH FLOW ACCOUNT.] (a) An 224.36 education aids cash flow account is established in the state 225.1 treasury for the purpose of ensuring the timely payment of state 225.2 aids or credits toschooldistricts as provided in this 225.3 section. In the event the account balance in any appropriation 225.4 from the general fund to the departmentof children, families,225.5and learningfor education aids or credits is insufficient to 225.6 make the next scheduled payment or payments, the commissionerof225.7children, families, and learningis authorized to transfer funds 225.8 from the education aids cash flow account to the accounts that 225.9 are insufficient. 225.10 (b) For purposes of this subdivision, an account may have 225.11 an insufficient balance only as a result of some districts being 225.12 overpaid based on revised estimates for the relevant annual aid 225.13 or credit entitlements. When the overpayment amounts are 225.14 recovered from the pertinent districts, the commissionerof225.15children, families, and learningshall transfer those amounts to 225.16 the education aids cash flow account. The commissioner shall 225.17 determine when it is not feasible to recover the overpayments in 225.18 a timely manner from the district's future aid payments and 225.19 notify the district of the amount that is to be refunded to the 225.20 state.SchoolDistricts are encouraged to make such refunds 225.21 promptly. The commissioner may approve a schedule for making a 225.22 refund when a district demonstrates that its cash flow is 225.23 inadequate to promptly make the refund in full. 225.24 (c) There is annually appropriated from the general fund to 225.25 the education aids cash flow account the additional amount 225.26 necessary to ensure the timely payment of state aids or credits 225.27 toschooldistricts as provided in this section. For any fiscal 225.28 year, the appropriation authorized in this subdivisionshall225.29 must not exceed an amount equal to two-tenths of one percent of 225.30 the total general fund appropriations in that year for education 225.31 aids and credits. At the close of each fiscal year, the amount 225.32 of actual transfers plus anticipated transfers required in 225.33 paragraph (b)shallmust equal the authorized amounts 225.34 transferred in paragraph (a) so that the net effect on total 225.35 general fund spending for education aids and credits is zero. 225.36 Sec. 36. Minnesota Statutes 1996, section 124.196, is 226.1 amended to read: 226.2 124.196 [CHANGE IN PAYMENT OF AIDS AND CREDITS.] 226.3 If the commissioner of finance determines that 226.4 modifications in the payment schedule would reduce the need for 226.5 state short-term borrowing, the commissionerof children,226.6families, and learningshall modify payments toschooldistricts 226.7 according to this section. The modificationsshallmust begin 226.8 no sooner than September 1 of each fiscal year, andshallmust 226.9 remain in effect until no later than May 30 of that same fiscal 226.10 year. In calculating the payment to aschooldistrict pursuant 226.11 to section 124.195, subdivision 3, the commissioner may subtract 226.12 the sum specified in that subdivision, plus an additional amount 226.13 no greater than the following: 226.14 (1) the net cash balance in the district's four operating 226.15 funds on June 30 of the preceding fiscal year; minus 226.16 (2) the product of $150 times the number of actual pupil 226.17 units in the preceding fiscal year; minus 226.18 (3) the amount of payments made by the county treasurer 226.19 during the preceding fiscal year, pursuant to section 276.11, 226.20 which is considered revenue for the current school year. 226.21 However, no additional amount shall be subtracted if the total 226.22 of the net unappropriated fund balances in the district's four 226.23 operating funds on June 30 of the preceding fiscal year, is less 226.24 than the product of $350 times the number of actual pupil units 226.25 in the preceding fiscal year. The net cash balanceshallmust 226.26 include all cash and investments, less certificates of 226.27 indebtedness outstanding, and orders not paid for want of funds. 226.28 A district may appeal the payment schedule established by 226.29 this section according to the procedures established in section 226.30 124.195, subdivision 3a. 226.31 Sec. 37. Minnesota Statutes 1996, section 124.2131, 226.32 subdivision 1, is amended to read: 226.33 Subdivision 1. [ADJUSTED NET TAX CAPACITY.] (a) 226.34 [COMPUTATION.] The department of revenueshallmust annually 226.35 conduct an assessment/sales ratio study of the taxable property 226.36 in each school district in accordance with the procedures in 227.1 paragraphs (b) and (c). Based upon the results of this 227.2 assessment/sales ratio study, the department of revenueshall227.3 must determine an aggregate equalized net tax capacity for the 227.4 various classes of taxable property in eachschooldistrict, 227.5 which tax capacity shall be designated as the adjusted net tax 227.6 capacity. The adjusted net tax capacities shall be determined 227.7 using the net tax capacity percentages in effect for the 227.8 assessment year following the assessment year of the study. The 227.9 department of revenueshallmust make whatever estimates are 227.10 necessary to account for changes in the classification system. 227.11 The department of revenue may incur the expense necessary to 227.12 make the determinations. The commissioner of revenue may 227.13 reimburse any county or governmental official for requested 227.14 services performed in ascertaining the adjusted net tax 227.15 capacity. On or before March 15 annually, the department of 227.16 revenue shall file with the chair of the tax committee of the 227.17 house of representatives and the chair of the committee on taxes 227.18 and tax laws of the senate a report of adjusted net tax 227.19 capacities. On or before June 15 annually, the department of 227.20 revenue shall file its final report on the adjusted net tax 227.21 capacities established by the previous year's assessments and 227.22 the current year's net tax capacity percentages with the 227.23 commissioner of children, families, and learning and each county 227.24 auditor for thoseschooldistricts for which the auditor has the 227.25 responsibility for determination of local tax rates. A copy of 227.26 the report so filed shall be mailed to the clerk of each 227.27 district involved and to the county assessor or supervisor of 227.28 assessments of the county or counties in which each district is 227.29 located. 227.30 (b) [METHODOLOGY.] In making its annual assessment/sales 227.31 ratio studies, the department of revenueshallmust use a 227.32 methodology consistent with the most recent Standard on 227.33 Assessment Ratio Studies published by the assessment standards 227.34 committee of the International Association of Assessing 227.35 Officers. The commissioner of revenue shall supplement this 227.36 general methodology with specific procedures necessary for 228.1 execution of the study in accordance with other Minnesota laws 228.2 impacting the assessment/sales ratio study. The commissioner 228.3 shall document these specific procedures in writing and shall 228.4 publish the procedures in the State Register, but these 228.5 procedures will not be considered "rules" pursuant to the 228.6 Minnesota Administrative Procedure Act. For purposes of this 228.7 section, sections 270.12, subdivision 2, clause (8), and 278.05, 228.8 subdivision 4, the commissioner of revenue shall exclude from 228.9 the assessment/sales ratio study the sale of any nonagricultural 228.10 property which does not contain an improvement, if (1) the 228.11 statutory basis on which the property's taxable value as most 228.12 recently assessed is less than market value as defined in 228.13 section 273.11, or (2) the property has undergone significant 228.14 physical change or a change of use since the most recent 228.15 assessment. 228.16 (c) [AGRICULTURAL LANDS.] For purposes of determining the 228.17 adjusted net tax capacity of agricultural lands for the 228.18 calculation of adjusted net tax capacities, the market value of 228.19 agricultural landsshallmust be the price for which the 228.20 property would sell in an arms length transaction. 228.21 (d) [FORCED SALES.] The commissioner of revenue may 228.22 include forced sales in the assessment/sales ratio studies if it 228.23 is determined by the commissioner of revenue that these forced 228.24 sales indicate true market value. 228.25 (e) [STIPULATED VALUES AND ABATEMENTS.] The estimated 228.26 market value to be used in calculating sales ratiosshallmust 228.27 be the value established by the assessor before any stipulations 228.28 resulting from appeals by property owners and before any 228.29 abatement unless the abatement was granted for the purpose of 228.30 correcting mere clerical errors. 228.31 (f) [SALES OF INDUSTRIAL PROPERTY.] Separate sales 228.32 ratiosshallmust be calculated for commercial property and for 228.33 industrial property. These two classes shall be combined only 228.34 in jurisdictions in which there is not an adequate sample of 228.35 sales in each class. 228.36 Sec. 38. Minnesota Statutes 1996, section 124.2131, 229.1 subdivision 2, is amended to read: 229.2 Subd. 2. [ADJUSTED NET TAX CAPACITY; GROWTH LIMIT.] In the 229.3 calculation of adjusted net tax capacities for 1987 and each 229.4 year thereafter, the commissioner of revenue shall not increase 229.5 the adjusted net tax capacity of taxable property for anyschool229.6 district over the adjusted net tax capacity established and 229.7 filed with the commissionerof children, families, and learning229.8 for the immediately preceding year by more than the greater of 229.9 (1) 19 percent of the certified adjusted net tax capacity 229.10 established and filed with the commissioner of children, 229.11 families, and learning for the year immediately preceding, or 229.12 (2) 40 percent of the difference between the district's total 229.13 adjusted net tax capacity for the current year calculated 229.14 without the application of this subdivision and the district's 229.15 certified adjusted net tax capacity established and filed with 229.16 the commissionerof children, families, and learningfor the 229.17 immediately preceding year. 229.18 Sec. 39. Minnesota Statutes 1996, section 124.2131, 229.19 subdivision 3a, is amended to read: 229.20 Subd. 3a. [CAPTURED TAX CAPACITY ADJUSTMENT.] In 229.21 calculating adjusted net tax capacity, the commissioner of 229.22 revenue shall increase the adjusted net tax capacity of aschool229.23 district containing a tax increment financing district for which 229.24 an election is made under section 469.1782, subdivision 1, 229.25 clause (1). The amount of the increase equals the captured net 229.26 tax capacity of the tax increment financing district in the year 229.27 preceding the first taxes payable year in which the special law 229.28 permits collection beyond that permitted by the general law 229.29 duration limit that otherwise would apply. The addition applies 229.30 beginning for aid and levy for the first taxes payable year in 229.31 which the special law permits collection of increment beyond 229.32 that permitted by the general law duration limit that otherwise 229.33 would apply. The addition continues to apply for each taxes 229.34 payable year the district remains in effect. 229.35 Sec. 40. Minnesota Statutes 1996, section 124.2131, 229.36 subdivision 5, is amended to read: 230.1 Subd. 5. [ADJUSTED NET TAX CAPACITY; APPEALS.]Should230.2anyIf a district, within 30 days after receipt of a copy of a 230.3 report filed with the commissionerof children, families, and230.4learningmade pursuant to subdivision 1 or 3,beis of the 230.5 opinion that the commissioner of revenue has made an error in 230.6 the determination of theschooldistrict's market value, it may 230.7 appeal from the report or portion thereof relating to theschool230.8 district to the commissioner of revenue for a review and 230.9 determination of the matters contained in the appeal. The 230.10 commissioner of revenue shall advise theschooldistrict of the 230.11 determination within 30 days. If theschooldistrict wishes to 230.12 appeal the determination of the commissioner, it must file a 230.13 notice of appeal with the tax court, as provided in subdivisions 230.14 6 to 11 within ten days of the notice of determination from the 230.15 commissioner. 230.16 Sec. 41. Minnesota Statutes 1996, section 124.2131, 230.17 subdivision 6, is amended to read: 230.18 Subd. 6. [NOTICE OF APPEAL.] Theschooldistrictshall230.19 must file with the court administrator of the tax court a notice 230.20 of appeal from the determination of the commissioner of revenue 230.21 fixing the market value of theschooldistrict, and such notice 230.22shallmust show the basis of the alleged error. A copy of 230.23suchthe notice of appealshallmust be served upon the 230.24 commissioner of revenue, and proof of serviceshallmust be 230.25 filed with the court administrator. 230.26 Sec. 42. Minnesota Statutes 1996, section 124.2131, 230.27 subdivision 7, is amended to read: 230.28 Subd. 7. [HEARING.] Upon receipt of the notice of appeal 230.29 the tax courtshallmust review the notice of appeal and 230.30 determine whether it appears from the allegations and proofs 230.31 therein contained that an error has been made in the 230.32 determination by the commissioner of revenue of the market value 230.33 of the property in the school district. If the court finds it 230.34 probable that such an error has been made, itshallmust notice 230.35 the matter for hearing; otherwise, itshallmust dismiss the 230.36 appeal and notify the parties thereof.Hearing shallHearings 231.1 must be set and held in the same manner as other hearings of the 231.2 tax court are set and heard, except that an appeal filed under 231.3 subdivision 5shallmust take precedence over other appeals 231.4 pending before the court. The attorney general shall represent 231.5 the commissioner of revenue. The Administrative Procedure Act, 231.6 sections 14.09 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 231.7 14.69, shall apply to hearings insofar as it is applicable. 231.8 Sec. 43. Minnesota Statutes 1996, section 124.2131, 231.9 subdivision 8, is amended to read: 231.10 Subd. 8. [TAX COURT DETERMINATION.] The tax court shall 231.11 hear, consider, and determine such appeal, de novo upon the 231.12 issues made by the notice of appeal, if a hearing has been 231.13 granted thereon. At the conclusion of the hearing, the court 231.14shallmust: (1) file findings of fact, or (2) refer the issues 231.15 to the commissioner of revenue with instructions and 231.16 recommendations for a determination and correction of the market 231.17 value of the appealingschooldistrict. The decision of the tax 231.18 court, if it decides the matter de novo, shall have the same 231.19 force and effect as a determination by the commissioner of 231.20 revenue in the first instance under this section, and the 231.21 commissioner of revenueshallmust be notified thereof. If the 231.22 matter is rereferred to the commissioner of revenue, a 231.23 redetermination by the commissioner of revenue in accordance 231.24 with the recommendations of the tax courtshallmust likewise 231.25 have the same force and effect as a determination by it in the 231.26 first instance under this section. 231.27 Sec. 44. Minnesota Statutes 1996, section 124.2131, 231.28 subdivision 9, is amended to read: 231.29 Subd. 9. [HEARING EXAMINER.] In addition to the powers and 231.30 duties of the tax court as prescribed by chapter 271,and any231.31act amendatory thereof,any hearing ordered pursuant tothe231.32provisions hereunderthis section may be heard by a hearing 231.33 examiner in lieu of one or more judges of the tax court. If a 231.34 hearing is conducted by a hearing examiner, such hearing 231.35 examiner shall exercise the same powers conferred by law upon 231.36 one or more judges of the tax court. The hearing examiner shall 232.1 report to the court. The court is authorized to make findings 232.2 of fact based on the report of the hearing examiner in the same 232.3 manner as is required by these provisions when the hearing is 232.4 conducted by the court. The tax court may employ hearing 232.5 examiners upon such terms and conditions as it shall prescribe. 232.6 A hearing examiner so appointed shall be in the unclassified 232.7 service of the state. 232.8 Sec. 45. Minnesota Statutes 1996, section 124.2131, 232.9 subdivision 11, is amended to read: 232.10 Subd. 11. [AIDS PENDING APPEALS.] During the pendency of 232.11 any appeal from the commissioner of revenue evaluation, state 232.12 aids to the appealing districtso appealing shallmust be paid 232.13 on the basis of the evaluation subject to adjustment upon final 232.14 determination of the appeal. 232.15 Sec. 46. Minnesota Statutes 1996, section 124.214, is 232.16 amended to read: 232.17 124.214 [AID ADJUSTMENTS.] 232.18 Subdivision 1. [OMISSIONS.] No adjustments to any aid 232.19 payments made pursuant to this chapter or chapter 124A, 232.20 resulting from omissions inschooldistrict reports, except 232.21 those adjustments determined by the legislative auditor, shall 232.22 be made for any school year after December 30 of the next school 232.23 year, unless otherwise specifically provided by law. 232.24 Subd. 2. [ABATEMENTS.] Whenever by virtue of chapter 278, 232.25 sections 270.07, 375.192, or otherwise, the net tax capacity of 232.26 anyschooldistrict for any taxable year is changed after the 232.27 taxes for that year have been spread by the county auditor and 232.28 the local tax rate as determined by the county auditor based 232.29 upon the original net tax capacity is applied upon the changed 232.30 net tax capacities, the county auditor shall, prior to February 232.31 1 of each year, certify to the commissioner of children, 232.32 families, and learning the amount of any resulting net revenue 232.33 loss that accrued to theschooldistrict during the preceding 232.34 year. Each year, the commissioner shall pay an abatement 232.35 adjustment to the district in an amount calculated according to 232.36 the provisions of this subdivision. This amount shall be 233.1 deducted from the amount of the levy authorized by section 233.2 124.912, subdivision 9. The amount of the abatement 233.3 adjustmentshallmust be the product of: 233.4 (1) the net revenue loss as certified by the county 233.5 auditor, times 233.6 (2) the ratio of: 233.7(a)(i) the sum of the amounts of the district's certified 233.8 levy in the preceding year according to the following: 233.9(i)(A) section 124A.23 if the district received general 233.10 education aid according to that section for the second preceding 233.11 year; 233.12(ii)(B) section 124.226, subdivisions 1 and 4, if the 233.13 district received transportation aid according to section 233.14 124.225 for the second preceding year; 233.15(iii)(C) section 124.243, if the district received capital 233.16 expenditure facilities aid according to that section for the 233.17 second preceding year; 233.18(iv)(D) section 124.244, if the district received capital 233.19 expenditure equipment aid according to that section for the 233.20 second preceding year; 233.21(v)(E) section 124.83, if the district received health and 233.22 safety aid according to that section for the second preceding 233.23 year; 233.24(vi)(F) sections 124.2713, 124.2714, and 124.2715, if the 233.25 district received aid for community education programs according 233.26 to any of those sections for the second preceding year; 233.27(vii)(G) section 124.2711, subdivision 2a, if the district 233.28 received early childhood family education aid according to 233.29 section 124.2711 for the second preceding year; 233.30(viii)(H) section 124.321, subdivision 3, if the district 233.31 received special education levy equalization aid according to 233.32 that section for the second preceding year; 233.33(ix)(I) section 124A.03, subdivision 1g, if the district 233.34 received referendum equalization aid according to that section 233.35 for the second preceding year; and 233.36(x)(J) section 124A.22, subdivision 4a, if the district 234.1 received training and experience aid according to that section 234.2 for the second preceding year; to 234.3(b) to(ii) the total amount of the district's certified 234.4 levy in the preceding October, plus or minus auditor's 234.5 adjustments. 234.6 Subd. 3. [EXCESS TAX INCREMENT.] (a) If a return of excess 234.7 tax increment is made to aschooldistrict pursuant to section 234.8 469.176, subdivision 2, or upon decertification of a tax 234.9 increment district, the school district's aid and levy 234.10 limitations must be adjusted for the fiscal year in which the 234.11 excess tax increment is paid under the provisions of this 234.12 subdivision. 234.13(a)(b) An amount must be subtracted from theschool234.14 district's aid for the current fiscal year equal to the product 234.15 of: 234.16 (1) the amount of the payment of excess tax increment to 234.17 theschooldistrict, times 234.18 (2) the ratio of: 234.19(A)(i) the sum of the amounts of theschooldistrict's 234.20 certified levy for the fiscal year in which the excess tax 234.21 increment is paid according to the following: 234.22(i)(A) section 124A.23, if the district received general 234.23 education aid according to that section for the second preceding 234.24 year; 234.25(ii)(B) section 124.226, subdivisions 1 and 4, if the 234.26schooldistrict received transportation aid according to section 234.27 124.225 for the second preceding year; 234.28(iii)(C) section 124.243, if the district received capital 234.29 expenditure facilities aid according to that section for the 234.30 second preceding year; 234.31(iv)(D) section 124.244, if the district received capital 234.32 expenditure equipment aid according to that section for the 234.33 second preceding year; 234.34(v)(E) section 124.83, if the district received health and 234.35 safety aid according to that section for the second preceding 234.36 year; 235.1(vi)(F) sections 124.2713, 124.2714, and 124.2715, if the 235.2 district received aid for community education programs according 235.3 to any of those sections for the second preceding year; 235.4(vii)(G) section 124.2711, subdivision 2a, if the district 235.5 received early childhood family education aid according to 235.6 section 124.2711 for the second preceding year; 235.7(viii)(H) section 124.321, subdivision 3, if the district 235.8 received special education levy equalization aid according to 235.9 that section for the second preceding year; 235.10(ix)(I) section 124A.03, subdivision 1g, if the district 235.11 received referendum equalization aid according to that section 235.12 for the second preceding year; and 235.13(x)(J) section 124A.22, subdivision 4a, if the district 235.14 received training and experience aid according to that section 235.15 for the second preceding year; to 235.16(B) to(ii) the total amount of theschooldistrict's 235.17 certified levy for the fiscal year, plus or minus auditor's 235.18 adjustments. 235.19(b)(c) An amount must be subtracted from the school 235.20 district's levy limitation for the next levy certified equal to 235.21 the difference between: 235.22 (1) the amount of the distribution of excess increment,; 235.23 and 235.24 (2) the amount subtracted from aid pursuant to clause (a). 235.25 If the aid and levy reductions required by this subdivision 235.26 cannot be made to the aid for the fiscal year specified or to 235.27 the levy specified, the reductions must be made from aid for 235.28 subsequent fiscal years, and from subsequent levies. The school 235.29 districtshallmust use the payment of excess tax increment to 235.30 replace the aid and levy revenue reduced under this subdivision. 235.31 (d) This subdivision applies only to the total amount of 235.32 excess increments received by aschooldistrict for a calendar 235.33 year that exceeds $25,000. 235.34 Sec. 47. Minnesota Statutes 1996, section 124.625, is 235.35 amended to read: 235.36 124.625 [VETERANS TRAINING.] 236.1 The commissioner shall continue the veterans training 236.2 program. All receipts to the veterans training revolving fund 236.3 for the veterans training program are appropriated to the 236.4 commissioner to pay the necessary expenses of operation of the 236.5 program. The departmentof children, families, and learning236.6shallmust act as the state agency for approving educational 236.7 institutions for purposes of United States Code, title 38, 236.8 chapter 36, relating to educational benefits for veterans and 236.9 other persons. The state board may adopt rules to fulfill its 236.10 obligations as the state approving agency. All federal money 236.11 received for purposes of the veterans training programshall236.12 must be deposited in the veterans training revolving fund and is 236.13 appropriated to the department for those purposes. 236.14 Sec. 48. Minnesota Statutes 1996, section 124A.036, as 236.15 amended by Laws 1997, chapter 7, article 1, section 65, is 236.16 amended to read: 236.17 124A.036 [PAYMENTS TO RESIDENT AND NONRESIDENT DISTRICTS.] 236.18 Subdivision 1. [AID TO DISTRICT OF RESIDENCE.] General 236.19 education aidshallmust be paid to the district of residence 236.20 unless otherwise specifically provided by law. 236.21 Subd. 1a. [REPORTING; REVENUE FOR HOMELESS.] For all 236.22 school purposes, unless otherwise specifically provided by law, 236.23 a homeless pupil must be considered a resident of the school 236.24 district that enrolls the pupil. 236.25 Subd. 2. [DISTRICT WITHOUT SCHOOLS.] Except as otherwise 236.26 provided in law, any district not maintaining classified 236.27 elementary or secondary schoolsshallmust pay the tuition 236.28 required in order to enable resident pupils to attend school in 236.29 another district when necessary, andshallmust receive general 236.30 education aid on the same basis as other districts. The 236.31 aidshallmust be computed as if the pupils were enrolled in the 236.32 district of residence. 236.33 Subd. 3. [NOTIFICATION OF RESIDENT DISTRICT.] A district 236.34 educating a pupil who is a resident of another districtshall236.35 must notify the district of residence within 60 days of the date 236.36 the pupil is determined by the district to be a nonresident, but 237.1 not later than August 1 following the end of the school year in 237.2 which the pupil is educated. If the district of residence does 237.3 not receive a notification from the providing district pursuant 237.4 to this subdivision, itshallis notbeliable to that district 237.5 for any tuition billing received after August 1 of the next 237.6 school year. 237.7 Subd. 4. [STATE AGENCY AND COURT PLACEMENTS.] If a state 237.8 agency or a court of the state desires to place a child in a 237.9schooldistrictwhichthat is not the child's district of 237.10 residence, that agency or courtshallmust,prior tobefore 237.11 placement, allow the district of residence an opportunity to 237.12 participate in the placement decision and notify the district of 237.13 residence, the district of attendance and the commissionerof237.14children, families, and learningof the placement decision. 237.15 When a state agency or court determines that an immediate 237.16 emergency placement is necessary and that time does not permit 237.17 district participation in the placement decision or notice to 237.18 the districts and the commissionerof children, families, and237.19learningof the placement decisionprior tobefore the 237.20 placement, the agency or court may make the decision and 237.21 placement without that participation or prior notice. The 237.22 agency or courtshallmust notify the district of residence, the 237.23 district of attendance and the commissionerof children,237.24families, and learningof an emergency placement within 15 days 237.25 of the placement. 237.26 Subd. 5. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 237.27 education aid for districts must be adjusted for each pupil 237.28 attending a nonresident district under sections 120.062, 237.29 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22. 237.30 The adjustments must be made according to this subdivision. 237.31 (a) General education aid paid to a resident district must 237.32 be reduced by an amount equal to the general education revenue 237.33 exclusive of compensatory revenue attributable to the pupil in 237.34 the resident district. 237.35 (b) General education aid paid to a district serving a 237.36 pupil in programs listed in this subdivisionshallmust be 238.1 increased by an amount equal to the general education revenue 238.2 exclusive of compensatory revenue attributable to the pupil in 238.3 the nonresident district. 238.4 (c) If the amount of the reduction to be made from the 238.5 general education aid of the resident district is greater than 238.6 the amount of general education aid otherwise due the district, 238.7 the excess reduction must be made from other state aids due the 238.8 district. 238.9 (d) The district of residenceshallmust pay tuition to a 238.10 district or an area learning center, operated according to 238.11 paragraph (e), providing special instruction and services to a 238.12 pupil with a disability, as defined in section 120.03, or a 238.13 pupil, as defined in section 120.181, who is enrolled in a 238.14 program listed in this subdivision. The tuitionshallmust be 238.15 equal to (1) the actual cost of providing special instruction 238.16 and services to the pupil, including a proportionate amount for 238.17 debt service and for capital expenditure facilities and 238.18 equipment, and debt service but not including any amount for 238.19 transportation, minus (2) the amount of general education aid 238.20 and special education aid, attributable to that pupil, that is 238.21 received by the district providing special instruction and 238.22 services. 238.23 (e) An area learning center operated by a service 238.24 cooperative, intermediate district, education district, or a 238.25 joint powers cooperative may elect through the action of the 238.26 constituent boards to charge tuition for pupils rather than to 238.27 calculate general education aid adjustments under paragraph (a), 238.28 (b), or (c). The tuition must be equal to the greater of the 238.29 average general education revenue per pupil unit attributable to 238.30 the pupil, or the actual cost of providing the instruction, 238.31 excluding transportation costs, if the pupil meets the 238.32 requirements of section 120.03 or 120.181. 238.33 Subd. 6. [CHARTER SCHOOLS.] (a) The general education aid 238.34 for districts must be adjusted for each pupil attending a 238.35 charter school under section 120.064. The adjustments must be 238.36 made according to this subdivision. 239.1 (b) General education aid paid to a resident district must 239.2 be reduced by an amount equal to the general education revenue 239.3 exclusive of compensatory revenue. 239.4 (c) General education aid paid to a district in which a 239.5 charter school not providing transportation according to section 239.6 120.064, subdivision 15, is locatedshallmust be increased by 239.7 an amount equal to the product of: (1) the sum of $170, plus 239.8 the transportation sparsity allowance for the district, plus the 239.9 transportation transition allowance for the district; times (2) 239.10 the pupil units attributable to the pupil. 239.11 (d) If the amount of the reduction to be made from the 239.12 general education aid of the resident district is greater than 239.13 the amount of general education aid otherwise due the district, 239.14 the excess reduction must be made from other state aids due the 239.15 district. 239.16 Sec. 49. [INSTRUCTION TO REVISOR.] 239.17 The revisor of statutes shall renumber each section of 239.18 Minnesota Statutes listed in column A with the number listed in 239.19 column B. The revisor shall also make necessary cross-reference 239.20 changes consistent with the renumbering. 239.21 Column A Column B 239.22 121.01 121A.01 239.23 121.81 121A.02 239.24 121.82 121A.03 239.25 121.02, subd. 1 121A.04, subd. 1 239.26 subd. 2a subd. 2 239.27 subd. 3 subd. 3 239.28 subd. 4 subd. 4 239.29 121.03 121A.05 239.30 121.04 121A.06 239.31 121.05 121A.07 239.32 121.06 121A.08 239.33 121.14 121A.09 239.34 121.11, subd. 7 121A.10, subd. 1 239.35 subd. 7b subd. 2 239.36 subd. 9 subd. 3 240.1 subd. 11 subd. 4 240.2 subd. 7c 121A.11 240.3 121.1113 121A.12 240.4 121.1115, subd. 1 121A.13, subd. 1 240.5 subd. 1a subd. 2 240.6 subd. 2 subd. 3 240.7 126.685 121A.15 240.8 121.48 121A.17 240.9 121.1601, subd. 1 121A.19, subd. 1 240.10 subd. 2 subd. 2 240.11 subd. 3 subd. 3 240.12 121.11, subd. 7d subd. 4 240.13 126.82 121A.20 240.14 121.16, subd. 1 121A.22, subd. 1 240.15 subd. 3 subd. 2 240.16 121.161 121A.23 240.17 121.162 121A.24 240.18 121.163 121A.25 240.19 121.175 121A.27 240.20 121.15, subd. 1 121A.31, subd. 1 240.21 subd. 1a subd. 2 240.22 subd. 1b subd. 3 240.23 subd. 2 subd. 4 240.24 subd. 3 subd. 5 240.25 subd. 4 subd. 6 240.26 subd. 5 subd. 7 240.27 subd. 6 subd. 8 240.28 subd. 7 subd. 9 240.29 subd. 7a subd. 10 240.30 subd. 8 subd. 11 240.31 subd. 9 subd. 12 240.32 121.1501 121A.32 240.33 121.1502 121A.33 240.34 121.931, subd. 1 121A.36, subd. 1 240.35 subd. 2 subd. 2 240.36 subd. 5 subd. 3 241.1 121.932, subd. 2 121A.37, subd. 1 241.2 subd. 3 subd. 2 241.3 subd. 4 subd. 3 241.4 subd. 4a subd. 4 241.5 subd. 4b subd. 5 241.6 subd. 5 subd. 6 241.7 subd. 6 subd. 7 241.8 121.933, subd. 1 121A.38 241.9 121.95 121A.39 241.10 121.498 121A.41 241.11 121.496, subd. 2 121A.43, subd. 1 241.12 subd. 3 subd. 2 241.13 121.11, subd. 5 121A.50 241.14 121.918 121A.51 241.15 121.919 121A.52 241.16 124.078 121A.54 241.17 124.079 121A.55 241.18 124.08 121A.56 241.19 124.09 121A.57 241.20 124.10 121A.58 241.21 124.12 121A.60 241.22 124.14, subd. 1 121A.61, subd. 1 241.23 subd. 2 subd. 2 241.24 subd. 3 subd. 3 241.25 subd. 3a subd. 4 241.26 subd. 4 subd. 5 241.27 subd. 6 subd. 6 241.28 subd. 7 subd. 7 241.29 subd. 8 subd. 8 241.30 124.15, subd. 1 121A.62, subd. 1 241.31 subd. 2 subd. 2 241.32 subd. 2a subd. 3 241.33 subd. 3 subd. 4 241.34 subd. 4 subd. 5 241.35 subd. 5 subd. 6 241.36 subd. 6 subd. 7 242.1 subd. 7 subd. 8 242.2 subd. 8 subd. 9 242.3 124.155 121A.63 242.4 124.18 121A.65 242.5 124.195, subd. 1 121A.67, subd. 1 242.6 subd. 2 subd. 2 242.7 subd. 3 subd. 3 242.8 subd. 3a subd. 4 242.9 subd. 3b subd. 5 242.10 subd. 3c subd. 6 242.11 subd. 4 subd. 7 242.12 subd. 5 subd. 8 242.13 subd. 6 subd. 9 242.14 subd. 7 subd. 10 242.15 subd. 8 subd. 11 242.16 subd. 9 subd. 12 242.17 subd. 10 subd. 13 242.18 subd. 11 subd. 14 242.19 subd. 14 subd. 15 242.20 subd. 15 subd. 16 242.21 124.196 121A.68 242.22 124A.036 121A.69 242.23 124.2131, subd. 1 121A.70, subd. 1 242.24 subd. 2 subd. 2 242.25 subd. 3 subd. 3 242.26 subd. 3a subd. 4 242.27 subd. 5 subd. 5 242.28 subd. 6 subd. 6 242.29 subd. 7 subd. 7 242.30 subd. 8 subd. 8 242.31 subd. 9 subd. 9 242.32 subd. 10 subd. 10 242.33 subd. 11 subd. 11 242.34 124.214 121A.72 242.35 124.2141 121A.73 242.36 126.256 121A.80 243.1 126.115 121A.82 243.2 124.625 121A.84 243.3 ARTICLE 5 243.4 CHAPTER 122A 243.5 SCHOOL DISTRICTS; FORMATION AND COOPERATION 243.6 Section 1. Minnesota Statutes 1996, section 121.155, is 243.7 amended to read: 243.8 121.155 [JOINT POWERS AGREEMENTS FOR FACILITIES.] 243.9 Subdivision 1. [INSTRUCTIONAL FACILITIES.] Any group of 243.10 districts may form a joint powers district under section 471.59 243.11 representing all participating districts to build or acquire a 243.12 facility to be used for instructional purposes. The joint 243.13 powers board must submit the project for review and comment 243.14 under section 121.15. The joint powers board must hold a 243.15 hearing on the proposal. The joint powers district must submit 243.16 the question of authorizing the borrowing of funds for the 243.17 project to the voters of the joint powers district at a special 243.18 election. The question submitted shall state the total amount 243.19 of funding needed from all sources. The joint powers board may 243.20 issue the bonds according to chapter 475 and certify the levy 243.21 required by section 475.61 only if a majority of those voting on 243.22 the question vote in the affirmative and only after the school 243.23 boards of each member district have adopted a resolution 243.24 pledging the full faith and credit of that district. The 243.25 resolution shall irrevocably commit that district to pay a 243.26 proportionate share, based on pupil units, of any debt levy 243.27 shortages that, together with other funds available, would allow 243.28 the joint powers board to pay the principal and interest on the 243.29 obligations. The district's payment of its proportionate share 243.30 of the shortfall shall be made from the district's capital 243.31 expenditure fund. The clerk of the joint powers board must 243.32 certify the vote of the bond election to the commissionerof243.33children, families, and learning. 243.34 Subd. 2. [SHARED FACILITIES.] A group of governmental 243.35 units may form a joint powers district under section 471.59 243.36 representing all participating units to build or acquire a 244.1 facility. The joint powers board must submit the project for 244.2 review and comment under section 121.15. The joint powers board 244.3 must hold a hearing on the proposal. The joint powers district 244.4 must submit the question of authorizing the borrowing of funds 244.5 for the project to the voters of the joint powers district at a 244.6 special election. The question submitted shall state the total 244.7 amount of funding needed from all sources. The joint powers 244.8 board may issue the bonds according to chapter 475 and certify 244.9 the levy required by section 475.61 only if a majority of those 244.10 voting on the question vote in the affirmative and only after 244.11 the boards of each member unit have adopted a resolution 244.12 pledging the full faith and credit of that unit. The resolution 244.13 must irrevocably commit that unit to pay an agreed upon share of 244.14 any debt levy shortages that, together with other funds 244.15 available, would allow the joint powers board to pay the 244.16 principal and interest on the obligations. The clerk of the 244.17 joint powers board must certify the vote of the bond election to 244.18 the commissionerof children, families, and learning. 244.19 Sec. 2. Minnesota Statutes 1996, section 122.01, is 244.20 amended to read: 244.21 122.01 [DEFINITIONS.] 244.22 Subdivision 1. [DEFINITIONS.] For purposes of this 244.23 chapter, the words defined in section 120.02, have the same 244.24 meaning. 244.25 Subd. 2. [TEACHER.] For purposes of this chapter, "teacher" 244.26 means a teacher as defined in section 125.12, subdivision 1. 244.27 Sec. 3. Minnesota Statutes 1996, section 122.02, is 244.28 amended to read: 244.29 122.02 [CLASSES, NUMBER.] 244.30SchoolDistricts shall be classified as common, 244.31 independent, or special districts, each of which is a public 244.32 corporation. Each district shall be known by its classification 244.33 andeach shall beassigned a number by the commissioner so that 244.34 its title will be .......... school district number ..... . 244.35 Sec. 4. Minnesota Statutes 1996, section 122.03, is 244.36 amended to read: 245.1 122.03 [ASSIGNMENT OF IDENTIFICATION NUMBERS.] 245.2 Subdivision 1. [ASSIGNMENT.] The commissionerof children,245.3families, and learningshall, by order, assign an identification 245.4 number to each district. The assignment shall be made so that 245.5 each classified district has an exclusive identification number 245.6which is exclusive to it in its classification. 245.7 Subd. 2. [NOTIFICATION.] Upon making the assignment of an 245.8 identification number, the commissionerof children, families,245.9and learningshallforthwithnotify the clerk of the district 245.10 and the county auditors of the counties in which any part of the 245.11 district lies of the identification number assigned. A 245.12 certified copy of the order may be recorded in the office of the 245.13 county recorder to show the new legal name of the district. 245.14 Subd. 3. [LEGAL IDENTIFICATION.]From and after the making245.15of the order,The legal identification of the district shall 245.16 becomeand be as assignedthe assigned identification number. 245.17 All records, correspondence, reports and references to the 245.18 districtshallmust thereafter refer to the district by its 245.19 proper title as assigned. 245.20 Subd. 4. [USE OF NUMBERS.] A numberonceassigned to a 245.21 district under section 122.02 or under any prior law,shallmust 245.22 not be used again to identify any district in the same 245.23 classification. As the need arises, and as required by law, as 245.24 new districts are formed, the commissionerof children,245.25families, and learningshall assign unused numbers as 245.26 identification. When numbered districts are dissolved, the 245.27 numbers assigned to them will not be reassigned to any other 245.28 district. 245.29 Sec. 5. Minnesota Statutes 1996, section 122.21, is 245.30 amended to read: 245.31 122.21 [DETACHMENT AND ANNEXATION OF LAND.] 245.32 Subdivision 1. [DETACHMENT AND ANNEXATION.] The owner of 245.33 land which adjoins any independent district, and whose land is 245.34 not in a special district may petition the county board of the 245.35 county in which the greater part of the area proposed for 245.36 detachment and annexation lies to detach all or any part of the 246.1 land together with the intervening lands as defined 246.2 insubparagraphparagraph (b)below, from the district it now is 246.3 in, and to attach it, together with such intervening land, to 246.4 the adjoining district. For purpose of this section, land is 246.5 adjoining aschooldistrict if: 246.6 (a) The boundary of the area proposed for detachment and 246.7 annexation is the same as the district boundary to which 246.8 attachment is sought at any point, including corners, or 246.9 (b) The area proposed for detachment and annexation is 246.10 separated at any point from the district to which annexation is 246.11 sought by not more than one-half mile and the intervening land 246.12 is vacant and unoccupied or is owned by one or more of the 246.13 following: The United States, or the state of Minnesota or any 246.14 of its political subdivisions, or an owner who is unknown or 246.15 cannot be found or 246.16 (c) The area proposed by a land owner for detachment and 246.17 annexation is adjoining,(as defined insubparagraphs246.18 paragraphs (a) and (b)above), any land proposed for detachment 246.19 from and annexation to the same district in another pending 246.20 petition. 246.21 Subd. 2. [PETITION.] The petitionshallmust contain: 246.22 (a) A correct description of the area proposed for 246.23 detachment and annexation,together with suchincluding 246.24 supporting datawith regard toregarding location and title to 246.25 landas will establish facts conformable to subdivision 1to 246.26 establish that the land is adjoining a district. 246.27 (b) The reasons for the proposed change with facts showing 246.28 that the granting of the petition will not reduce the size of 246.29 any district to less than four sections, unless the district is 246.30 not operating a school within the district. 246.31 (c) Consent to the petition,endorsed thereon at any time246.32before the hearing by the board of the district from which the246.33area is to be removed,if, at the time of the filing of the 246.34 petition, any part of the area proposed for detachment is part 246.35 of a district which maintains and operates a secondary school 246.36 within the district. Before the hearing, the consent of the 247.1 board of the district in which the area proposed for detachment 247.2 lies must be endorsed on the petition. 247.3 (d) An identification of the district to which annexation 247.4 is sought. 247.5 (e)SuchOther informationasthe petitioners may desire to 247.6 affix. 247.7 (f) An acknowledgment by the petitioner. 247.8 Subd. 3. [FILING PETITION.] The petitionshallmust be 247.9 filed with the auditor who shall present it to the county board 247.10 at its next meeting. At the meeting, the county boardshall247.11 must fix a time and place for hearing the petition, which time. 247.12 The hearing shall be not more than 60 nor less than ten days 247.13 from the date of the meeting. The auditor shallforthwithserve 247.14 notice of the hearing on each district directly affected by the 247.15 petition, by mail addressed to the clerk. If any area affected 247.16 by the petition is in another county, the auditor shall mail a 247.17 notice of hearing to the auditor of such county and shall also 247.18 give one week's published notice of the hearing in the county 247.19whereinin which the hearing is to be held, and ten days' posted 247.20 notice in each school district affected. Such posted and 247.21 published notice may combine pending petitions. At the hearing 247.22 on the petition, the county boardshallmust receive and hear 247.23 any evidence for or against the petition. The hearing may be 247.24 adjourned from time to time. 247.25 Subd. 4. [ORDER.] Within six months of thetime when the247.26petition was filedfiling of the petition, the county board 247.27shallmust issue its order either granting or denying the 247.28 petition, unless all or part. If any of the land area described 247.29 in the petition is included in a plat for consolidation or 247.30 combination which has been approved by the commissionerof247.31children, families, and learning in which event, then no order 247.32 may be issued while consolidation or combination proceedings are 247.33 pending. No order shall be issued which results in attaching to 247.34 a district any territory not adjoining that district, as defined 247.35 in subdivision 1(a). No order shall be issued which reduces the 247.36 size of any district to less than four sections unless the 248.1 district is not operating a school within the district. The 248.2 order maybe made effective athave a deferred effective date 248.3 not later than July 1nextimmediately following its issuance. 248.4 If the petitionbeis granted, the auditor shall transmit a 248.5 certified copy to the commissioner. Failure to issue an order 248.6 within six months of the filing of the petition or termination 248.7 of proceedings upon an approved consolidation plat, whichever is 248.8 later, is a denial of the petition. 248.9 Subd. 5. [MODIFICATION OF RECORDS.] Upon receipt of the 248.10 order, the commissioner shallforthwithmodify the records and 248.11 any plats and petitions and proceedings involving districts 248.12 affected by such order presently before the commissioner for 248.13 action or record, to conform to the order. 248.14 Subd. 6. [TAXABLE PROPERTY.] Upon the effective date of 248.15 the order, the detachment and annexationordered thereinis 248.16 effected. All taxable property in the area so detached and 248.17 annexed remains taxable for payment of any school purpose 248.18 obligationstheretofore authorized by or on that date248.19outstandingalready authorized by or outstanding on the 248.20 effective date of the order against the district from which 248.21 detached.Such property is not by virtue of the order248.22relievedThe order does not relieve such property from the 248.23 obligation of any bonded debttheretoforealready incurred to 248.24 which it was subject prior to the order. All taxable property 248.25 in the area so detached and annexed is taxable for payment of 248.26 anyschooldistrict obligations authorized on or subsequent to 248.27 the effective date of the order by the district to which 248.28 annexation is made. 248.29 Sec. 6. Minnesota Statutes 1996, section 122.22, 248.30 subdivision 1, is amended to read: 248.31 Subdivision 1. [DISSOLUTION.] Any district may be 248.32 dissolved and the territorybeattached to other districts by 248.33 proceeding in accordance with this section. 248.34 Sec. 7. Minnesota Statutes 1996, section 122.22, 248.35 subdivision 4, is amended to read: 248.36 Subd. 4. [PETITION.] A petition executed pursuant to 249.1 subdivision 2(b) shall be filed with the auditor.It shallThe 249.2 petition must contain the following: 249.3 (a) A statement that petitioners desire proceedings 249.4 instituted leading to dissolution of the district and other 249.5 provisions made for the education of the inhabitants of the 249.6 territory and that petitioners are eligible voters of the 249.7 district; 249.8 (b) An identification of the district; and 249.9 (c) The reasons supporting the petition which may include 249.10 recommendations as to disposition of territory to be dissolved. 249.11 The recommendations are advisory in nature only and are not 249.12 binding on any petitioners or county board for any purpose. 249.13 The persons circulating the petition shall attach their 249.14 affidavit swearing or affirming that the persons executing the 249.15 petition are eligible voters, as defined in section 201.014, of 249.16 the district and that they signed in the presence of one of the 249.17 circulators. 249.18 The auditor shall present the petition to the county board 249.19 at its next meeting. At that meeting, the county boardshall249.20 must determine a date for a hearing. The hearing shall be not 249.21 less than 20 nor more than 60 days from the date of that meeting. 249.22 Sec. 8. Minnesota Statutes 1996, section 122.22, 249.23 subdivision 5, is amended to read: 249.24 Subd. 5. [CERTIFICATION.] Certification executed pursuant 249.25 to subdivision 2(c)shallmust be filed with the auditor.It249.26shallThe certification must contain the following: 249.27 (a) A copy of the resolution initiating the election; 249.28 (b) A copy of the notice of election with an affidavit of 249.29 publication or posting; 249.30 (c) The question voted on; 249.31 (d) The results of the election by number of votes cast for 249.32 and number against the question; and 249.33 (e) If an advisory ballot is taken on annexation, the 249.34 question voted on and number of ballots cast for and against the 249.35 proposal. 249.36 The auditor shall present the certification to the county 250.1 board at its next meeting. At that meeting, the county board 250.2shallmust determine a date for a hearing. The hearing shall be 250.3 not less than 20 nor more than 60 days from the date of that 250.4 meeting. 250.5 Sec. 9. Minnesota Statutes 1996, section 122.22, 250.6 subdivision 6, is amended to read: 250.7 Subd. 6. [HEARING.] When a hearing is ordered under this 250.8 section, the auditor shallhavegive ten days' posted notice of 250.9 the hearing in the district proposed for dissolution, one week's 250.10 published notice in the county, and ten days' mailed notice to 250.11 the clerk of the district proposed for dissolution and to the 250.12 clerk of each adjoining district and to the commissioner. 250.13 Ifall orany part of the district proposed for dissolution or 250.14 any adjoining district lies in another county, the auditor shall 250.15forthwith upon establishment of the hearing date,mail notice of 250.16 the hearing to the auditor of each county so situated upon 250.17 establishment of the hearing date. 250.18 Sec. 10. Minnesota Statutes 1996, section 122.22, 250.19 subdivision 7a, is amended to read: 250.20 Subd. 7a. [INFORMATION TO COUNTY AUDITOR.] (a) Before the 250.21 day of a hearing ordered pursuant to this section, each district 250.22 adjoining the district proposed for dissolutionshallmust 250.23 provide the following information and resolution to the county 250.24 auditor of the county containing the greatest land area of the 250.25 district proposed for dissolution: 250.26 (1) The outstanding bonded debt, outstanding energy loans 250.27 made according to section 216C.37 or sections 298.292 to 250.28 298.298, and the capital loan obligation of the district; 250.29 (2) The net tax capacity of the district; 250.30 (3) The most current school tax rates for the district, 250.31 including any referendum, discretionary, or other optional 250.32 levies being assessed currently and the expected duration of the 250.33 levies; 250.34 (4) A resolution passed by the school board of the district 250.35 stating that if taxable property of the dissolved district is 250.36 attached to it, one of the following requirements is imposed: 251.1 (i) the taxable property of the dissolving district which 251.2 is attached to its district shall not be liable for the bonded 251.3 debt, outstanding energy loans made according to section 216C.37 251.4 or sections 298.292 to 298.298, or the capital loan obligation 251.5 of the district which existed as of the time of the attachment; 251.6 (ii) the taxable property of the dissolving district which 251.7 is attached to its district shall be liable for the payment of 251.8 the bonded debt, outstanding energy loans made according to 251.9 section 216C.37 or sections 298.292 to 298.298, or the capital 251.10 loan obligation of the district which existed as of the time of 251.11 the attachment in the proportion which the net tax capacity of 251.12 that part of the dissolving district which is included in the 251.13 newly enlarged district bears to the net tax capacity of the 251.14 entire district as of the time of attachment; or 251.15 (iii) the taxable property of the dissolving district which 251.16 is attached to its district shall be liable for some specified 251.17 portion of the amount that could be requested pursuant to 251.18 subclause (ii). 251.19 (b) An apportionment pursuant to paragraph (a), clause (4), 251.20 subclause (ii) or (iii), shall be made by the county auditor of 251.21 the county containing the greatest land area of the district 251.22 proposed for transfer. 251.23 (c) An apportionment of bonded indebtedness, outstanding 251.24 energy loans made according to section 216C.37 or sections 251.25 298.292 to 298.298, or capital loan obligation pursuant to 251.26 paragraph (a), clause (4), subclause (ii) or (iii), shall not 251.27 relieve any property from any tax liability for payment of any 251.28 bonded or capital obligation, but taxable property in a district 251.29 enlarged pursuant to this section becomes primarily liable for 251.30 the payment of the bonded debt, outstanding energy loans made 251.31 according to section 216C.37 or sections 298.292 to 298.298, or 251.32 capital loan obligation to the extent of the proportion stated. 251.33 Sec. 11. Minnesota Statutes 1996, section 122.22, 251.34 subdivision 9, is amended to read: 251.35 Subd. 9. [ORDER FOR DISSOLUTION.] (a) An order issued 251.36 under subdivision 8, clause (b),shallmust contain the 252.1 following: 252.2 (1) A statement that the district is dissolved unless the 252.3 results of an election held pursuant to subdivision 11 provide 252.4 otherwise; 252.5 (2) A description by words or plat or both showing the 252.6 disposition of territory in the district to be dissolved; 252.7 (3) The outstanding bonded debt, outstanding energy loans 252.8 made according to section 216C.37 or sections 298.292 to 252.9 298.298, and the capital loan obligation of the district to be 252.10 dissolved; 252.11 (4) A statement requiring the fulfillment of the 252.12 requirements imposed by each adjoining district to which 252.13 territory in the dissolving district is to be attached regarding 252.14 the assumption of its outstanding preexisting bonded 252.15 indebtedness by any territory from the dissolving district which 252.16 is attached to it; 252.17 (5) An effective date for the order. The effective date 252.18 shall be July 1 of an odd-numbered year unless the school board 252.19 and the exclusive representative of the teachers in each 252.20 affected district agree to an effective date of July 1 of an 252.21 even-numbered year. The agreement must be in writing and 252.22 submitted to the commissionerof children, families, and252.23learning; and 252.24 (6) Other information the county board may desire to 252.25 include. 252.26 (b) The auditor shall within ten days from its issuance 252.27 serve a copy of the order by mail upon the clerk of the district 252.28 to be dissolved and upon the clerk of each district to which the 252.29 order attaches any territory of the district to be dissolved and 252.30 upon the auditor of each other county in whichall orany part 252.31 of the district to be dissolved or any district to which the 252.32 order attaches territory lies, and upon the commissioner. 252.33 Sec. 12. Minnesota Statutes 1996, section 122.22, 252.34 subdivision 13, is amended to read: 252.35 Subd. 13. [ELECTION DATE.] If an election is required 252.36 under subdivision 11, then before the expiration of a 45 day 253.1 period after the date of the order for dissolution and 253.2 attachment, the auditor shall set a date and call the election 253.3 by filing a written orderthereforfor the election and serving 253.4 a copythereofof the order personally or by mail on the clerk 253.5 of the district in which the election is to be held. The date 253.6 shall be not less than 15 nor more than 30 days after the date 253.7 of the order, upon which date a special election shall be held 253.8 in the district proposed for dissolution. The auditor 253.9 shallcausepost and publish notice of the electionto be posted253.10and publishedaccording to law. Upon receipt of the notice, the 253.11 board shall conduct the election. 253.12 Sec. 13. Minnesota Statutes 1996, section 122.22, 253.13 subdivision 14, is amended to read: 253.14 Subd. 14. [ELECTION RESULTS.] The board must certify the 253.15 results of the electionshall be certified by the boardto the 253.16 auditor. If a majority of all votes cast on the question at the 253.17 election approve the order, the order becomes final and 253.18 effective as of the date specified in the order. Each person 253.19 served with the order shall be so notified. If a majority of 253.20 all votes cast on the question disapprove the order, the 253.21 proceedings are dismissed, and the order becomes void. 253.22 Sec. 14. Minnesota Statutes 1996, section 122.22, 253.23 subdivision 18, is amended to read: 253.24 Subd. 18. [BONDED DEBT.] The bonded debt of a district 253.25 dissolved under provisions of this sectionshallmust be paid 253.26 according to levies madethereforfor that debt under provision 253.27 of chapter 475. The obligation of the taxable property in the 253.28 dissolved district with reference to the payment of such bonded 253.29 debt is not affected by this section. 253.30 Sec. 15. Minnesota Statutes 1996, section 122.22, 253.31 subdivision 20, is amended to read: 253.32 Subd. 20. [CURRENT ASSETS AND LIABILITIES.] If the 253.33 dissolved district is not divided by the order of dissolution 253.34 and attachment, all of its current assets and liabilities, real 253.35 and personal, and all its legally valid and enforceable claims 253.36 and contract obligationsshallmust pass to the district to 254.1 which it is attached, except as provided in section 122.532. If 254.2 the district to be dissolved is divided by the order of 254.3 dissolution and attachment, the commissioner shall, within 30 254.4 days after the order is issued, issue an order for the 254.5 distribution of its current assets and liabilities, real and 254.6 personal. If the commissioner's order provides for the transfer 254.7 of an interest in real estate to a district, this order may also 254.8 impose a dollar amount as a claim against that district in favor 254.9 of other districts, and this claim shall be paid and enforced in 254.10 the manner provided by law for the payment of judgments against 254.11 a district. The obligations of districts to the teachers 254.12 employed by the dissolved district shall be governed by the 254.13 provisions of section 122.532. 254.14 Sec. 16. Minnesota Statutes 1996, section 122.22, 254.15 subdivision 21, is amended to read: 254.16 Subd. 21. [LEVIES.] (a) In the year prior to the effective 254.17 date of the dissolution of a district, theschoolboard of a 254.18 district to which all of the dissolving district is to be 254.19 attached may adopt a resolution directing theschoolboard of 254.20 the dissolving district to certify levies for general education, 254.21 basic transportation, and capital expenditure equipment and 254.22 facilities in an amount not to exceed the maximum amount 254.23 authorized for the dissolving district for taxes payable in the 254.24 year the dissolution is effective. If the dissolving district 254.25 is to be attached to more than oneschooldistrict, the boards 254.26 of the districts to which the dissolving district is to be 254.27 attached may adopt a joint resolution that accomplishes the 254.28 purpose in this paragraph. 254.29 (b) Notwithstanding any other law to the contrary, upon 254.30 receipt of a resolution under paragraph (a), the board of the 254.31 dissolving district must certify levies in the amounts specified 254.32 in the resolution for taxes payable in the year the dissolution 254.33 is effective. 254.34 Sec. 17. Minnesota Statutes 1996, section 122.23, 254.35 subdivision 2, is amended to read: 254.36 Subd. 2. [RESOLUTION.] (a) Upon a resolution of aschool255.1 board in the area proposed for consolidation or upon receipt of 255.2 a petition therefor executed by 25 percent of the voters 255.3 resident in the area proposed for consolidation or by 50 such 255.4 voters, whichever islesserless, the county auditor of the 255.5 county which contains the greatest land area of the proposed new 255.6 district shallforthwith cause a plat to be preparedprepare a 255.7 plat. The resolution or petitionshallmust show the 255.8 approximate area proposed for consolidation. 255.9 (b) The resolution or petition may propose the following: 255.10 (1) that the bonded debt of the component districts will be 255.11 paid according to the levies previously made for that debt under 255.12 chapter 475, or that the taxable property in the newly created 255.13 district will be taxable for the payment of all or a portion of 255.14 the bonded debt previously incurred by any component district as 255.15 provided in subdivision 16; 255.16 (2) that obligations for a capital loan or an energy loan 255.17 made according to section 216C.37 or sections 298.292 to 298.298 255.18 outstanding in a preexisting district as of the effective date 255.19 of consolidation remain solely with the preexisting district 255.20 that obtained the loan, or that all or a portion of the loan 255.21 obligations will be assumed by the newly created or enlarged 255.22 district and paid by the newly created or enlarged district on 255.23 behalf of the preexisting district that obtained the loan; 255.24 (3) that referendum levies previously approved by voters of 255.25 the component districts pursuant to section 124A.03, subdivision 255.26 2, or its predecessor provision, be combined as provided in 255.27 section 122.531, subdivision 2a or 2b, or that the referendum 255.28 levies be discontinued; 255.29 (4) that the board of the newly created district consist of 255.30 the number of members determined by the component districts, 255.31 which may be six or seven members elected according to 255.32 subdivision 18, or any number of existing school board members 255.33 of the component districts, and a method to gradually reduce the 255.34 membership to six or seven; or 255.35 (5) that separate election districts from whichschool255.36 board members will be elected, the boundaries of these election 256.1 districts, and the initial term of the member elected from each 256.2 of these election districts be established. 256.3 The resolution must provide for election of board members 256.4 from one of the following options: single-member districts; 256.5 multimember districts; at large; or a combination of these 256.6 options. The resolution must include a plan for the orderly 256.7 transition to the option chosen. 256.8 A group of districts that operates a cooperative secondary 256.9 facility funded under section 124.494 may also propose a 256.10 temporaryschoolboard structure as specified in section 256.11 124.494, subdivision 7. 256.12 If a county auditor receives more than one request for a 256.13 plat and the requests involve parts of identical districts, the 256.14 auditor shallforthwithprepare a plat which in the auditor's 256.15 opinion best serves the educational interests of the inhabitants 256.16 of the districts or areas affected. 256.17 (c) The platshallmust show: 256.18 (1) Boundaries of the proposed district, as determined by 256.19 the county auditor, and present district boundaries, 256.20 (2) The location of school buildings in the area proposed 256.21 as a new district and the location of school buildings in 256.22 adjoining districts, 256.23 (3) The boundaries of any proposed separate election 256.24 districts, and 256.25 (4) Other pertinent information as determined by the county 256.26 auditor. 256.27 Sec. 18. Minnesota Statutes 1996, section 122.23, 256.28 subdivision 2b, is amended to read: 256.29 Subd. 2b. [ORDERLY REDUCTION PLAN.] As part of the 256.30 resolution required by subdivision 2, theschoolboard must 256.31 prepare a plan for the orderly reduction of the membership of 256.32 the board to six or seven members and a plan for the 256.33 establishment or dissolution of election districts. The plan 256.34 must be submitted to the secretary of state for review and 256.35 comment. 256.36 Sec. 19. Minnesota Statutes 1996, section 122.23, 257.1 subdivision 3, is amended to read: 257.2 Subd. 3. [SUPPORTING STATEMENT.] The county auditor shall 257.3 prepare a supporting statement to accompany the platshall be257.4prepared by the county auditor. The statementshallmust 257.5 contain: 257.6 (a) The adjusted net tax capacity of property in the 257.7 proposed district, 257.8 (b) If a part of any district is included in the proposed 257.9 new district, the adjusted net tax capacity of the property and 257.10 the approximate number of pupils residing in the part of the 257.11 district included shall be shown separately and the adjusted net 257.12 tax capacity of the property and the approximate number of 257.13 pupils residing in the part of the district not included shall 257.14 also be shown, 257.15 (c) The reasons for the proposed consolidation, including a 257.16 statement that at the time the plat is submitted to the state 257.17 board of education, no proceedings are pending to dissolve any 257.18 district involved in the plat unless all of the district to be 257.19 dissolved and all of each district to which attachment is 257.20 proposed is included in the plat, 257.21 (d) A statement showing that the jurisdictional fact 257.22 requirements of subdivision 1 are met by the proposal, 257.23 (e) Any proposal contained in the resolution or petition 257.24 regarding the disposition of the bonded debt, outstanding energy 257.25 loans made according to section 216C.37 or sections 298.292 to 257.26 298.298, capital loan obligations, or referendum levies of 257.27 component districts, 257.28 (f) Any other information the county auditor desires to 257.29 include, and 257.30 (g) The signature of the county auditor. 257.31 Sec. 20. Minnesota Statutes 1996, section 122.23, 257.32 subdivision 6, is amended to read: 257.33 Subd. 6. [COMMISSIONER.] The commissioner shall, upon 257.34 receipt of a plat,forthwithexamine it and approve, modify or 257.35 reject it. The commissioner shall also approve or reject any 257.36 proposal contained in the resolution or petition regarding the 258.1 disposition of the bonded debt of the component districts. If 258.2 the plat shows the boundaries of proposed separate election 258.3 districts and if the commissioner modifies the plat, the 258.4 commissioner shall also modify the boundaries of the proposed 258.5 separate election districts. The commissioner shall conduct a 258.6 hearing at the nearest county seat in the area upon reasonable 258.7 notice to the affected districts and county boards if requested 258.8 within 20 days after submission of the plat.Such a hearing may258.9be requested byThe board of any affected district, a county 258.10 board of commissioners, or the petition of 20 resident voters 258.11 living within the area proposed for consolidation may request 258.12 such a hearing. The commissioner shall endorse on the plat 258.13 action regarding any proposal for the disposition of the bonded 258.14 debt of component districts and the reasons for these actions 258.15and. Within 60 days of the date of the receipt of the plat, the 258.16 commissioner shall return it to the county auditor who submitted 258.17 it. The commissioner shall furnish a copy of that plat, and the 258.18 supporting statement and its endorsement to the auditor of each 258.19 county containing any land area of the proposed new district. 258.20 If land area of a particular county was included in the plat, as 258.21 submitted by the county auditor, and all of such land area is 258.22 excluded in the plat as modified and approved, the commissioner 258.23 shall also furnish a copy of the modified plat, supporting 258.24 statement, and any endorsement to the auditor of such county. 258.25 Sec. 21. Minnesota Statutes 1996, section 122.23, 258.26 subdivision 7, is amended to read: 258.27 Subd. 7. [NOTICE TO BOARD.] Upon receipt of an approved 258.28 plat, the county auditor shallforthwithnotify the board of any 258.29 district, all or part of whose land is included in the proposed 258.30 new district. 258.31 Sec. 22. Minnesota Statutes 1996, section 122.23, 258.32 subdivision 8, is amended to read: 258.33 Subd. 8. [BOARD ADOPTION.] The board of any independent 258.34 district maintaining a secondary school, the board of any common 258.35 district maintaining a secondary school, all or part of whose 258.36 land is included in the proposed new district,shallmust, 259.1 within 45 days of the approval of the plat by the commissioner, 259.2 either adopt or reject the plan as proposed in the approved 259.3 plat. If the board of any such district entitled to act on the 259.4 petition rejects the proposal, the proceedings are terminated 259.5 and dismissed. If any board fails to act on the plat within the 259.6 time allowed, the proceedings are terminated. 259.7 Sec. 23. Minnesota Statutes 1996, section 122.23, 259.8 subdivision 9, is amended to read: 259.9 Subd. 9. [MULTIPLE DISTRICTS; APPROVAL.] If the approved 259.10 plat contains land area in more than one independent district 259.11 maintaining a secondary school, or common district maintaining a 259.12 secondary school, and if each board entitled to act on the plat 259.13 approves the plat, each board shallcausepublish notice of its 259.14 actionto be publishedat least once in its official newspaper. 259.15 If all of theschoolboards entitled to act on the plat call, by 259.16 resolution, for an election on the question, or if five percent 259.17 of the eligible voters of any such district petition the clerk 259.18 of the district, within 30 days after the publication of the 259.19 notice, for an election on the question, the consolidation shall 259.20 not become effective until approved by a majority vote in the 259.21 district at an election held in the manner provided in 259.22 subdivisions 11, 12, and 13. 259.23 Sec. 24. Minnesota Statutes 1996, section 122.23, 259.24 subdivision 10, is amended to read: 259.25 Subd. 10. [APPROVAL BY RESIDENTS.] If an approved plat 259.26 contains land area in any district not entitled to act on 259.27 approval or rejection of the plat by action of its board, the 259.28 plat may be approved by the residents of the land area within 60 259.29 days of approval of plat by the commissioner in the following 259.30 manner: 259.31 A petition calling upon the county auditor to call and 259.32 conduct an election on the question of adoption or rejection of 259.33 the plat may be circulated in the land area by any person 259.34 residing in the area. Upon the filing of the petition with the 259.35 county auditor, executed by at least 25 percent of the eligible 259.36 voters in each district or part of a district contained in the 260.1 land area, the county auditor shallforthwithcall and conduct a 260.2 special election of the electors resident in the whole land area 260.3 on the question of adoption of the plat. For the purposes of 260.4 this section, the term "electors resident in the whole land area" 260.5 means any person residing on any remaining portion of land, a 260.6 part of which is included in the consolidation plat. Any 260.7 eligible voter owning land included in the plat who lives upon 260.8 land adjacent or contiguous to that part of the voter's land 260.9 included in the plat shall be included and counted in computing 260.10 the 25 percent of the eligible voters necessary to sign the 260.11 petition and shall also be qualified to sign the petition. 260.12 Failure to file the petition within 60 days of approval of the 260.13 plat by the commissioner terminates the proceedings. 260.14 Sec. 25. Minnesota Statutes 1996, section 122.23, 260.15 subdivision 11, is amended to read: 260.16 Subd. 11. [NOTICE OF ELECTION.] Upon an election becoming 260.17 callable under provisions of subdivision 9 or 10, theschool260.18 board shall give ten days' posted notice of election in the area 260.19 in which the election is to be held and also ifthere bea 260.20 newspaper is published in the area, one weeks' published notice 260.21 shall be given. The noticeshallmust specify the time, place 260.22 and purpose of the election. 260.23 Sec. 26. Minnesota Statutes 1996, section 122.23, 260.24 subdivision 12, is amended to read: 260.25 Subd. 12. [ELECTION.] Theschoolboard shall determine the 260.26 date of the election, the number of boundaries of voting 260.27 precincts, and the location of the polling places where voting 260.28 shall be conducted, and the hours the polls will be open. 260.29 Theschoolboard shall also provide official ballots whichshall260.30 must be used exclusively and shall be in the following form: 260.31 For consolidation .... 260.32 Against consolidation .... 260.33 Theschoolboardshallmust appoint election judges who 260.34 shall act as clerks of election. The ballots and resultsshall260.35 must be certified to theschoolboard who shall canvass and 260.36 tabulate the total vote cast for and against the proposal. 261.1 Sec. 27. Minnesota Statutes 1996, section 122.23, 261.2 subdivision 13, is amended to read: 261.3 Subd. 13. [EFFECTIVE DATE.] If a majority of the votes 261.4 cast on the question at the election approve the consolidation, 261.5 and if the necessary approving resolutions of boards entitled to 261.6 act on the plat have been adopted, theschoolboardshallmust, 261.7 within ten days of the election, notify the county auditor who 261.8 shall, within ten days of the notice or of the expiration of the 261.9 period during which an election can be called, issue an order 261.10 setting a date for the effective date of the change. The 261.11 effective dateshallmust be July 1 of the year determined by 261.12 theschoolboard in the original resolution adopted under 261.13 subdivision 2. The auditor shall mail or deliver a copy of such 261.14 order to each auditor holding a copy of the plat and to the 261.15 clerk of each district affected by the order and to the 261.16 commissioner. Theschoolboardshallmust similarly notify the 261.17 county auditor if the election fails. The proceedings are then 261.18 terminated and the county auditor shall so notify the 261.19 commissioner and the auditors and the clerk of eachschool261.20 district affected. 261.21 Sec. 28. Minnesota Statutes 1996, section 122.23, 261.22 subdivision 14, is amended to read: 261.23 Subd. 14. [IDENTIFICATION NUMBER.] Upon receipt of the 261.24 order creating a new district, the commissioner shallforthwith, 261.25 by order, assign an identification number to the new district 261.26 and shall mail a copy of the order to the county auditor and to 261.27 each auditor who holds a copy of the plat. If all of the 261.28 territory in one and only one independent district maintaining a 261.29 secondary school is included in the new independent district 261.30 created pursuant to consolidation, and if the commissioner finds 261.31 that it is more practical and reasonable and in the interest of 261.32 efficiency and economy of operation to so do, the commissioner 261.33 may assign to the new district the same number as previously 261.34 held by the included independent district. 261.35 Sec. 29. Minnesota Statutes 1996, section 122.23, 261.36 subdivision 16, is amended to read: 262.1 Subd. 16. [BONDED DEBT.] As of the effective date of the 262.2 consolidation, the bonded debt of all component districtsshall262.3 must be paid according to the plan for consolidation proposed in 262.4 the approved plat and according to this subdivision. 262.5 (a) If the plan for consolidation so provides, the bonded 262.6 debt of all component districtsshallmust be paid according to 262.7 levies previously made for that debt under chapter 475. In this 262.8 case, the obligation of the taxable property in the component 262.9 districts with reference to the payment of such bonded debt is 262.10 not affected by the consolidation. 262.11 (b) If the plan for consolidation makes no provision for 262.12 the disposition of bonded debt, all the taxable property in the 262.13 newly created district is taxable for the payment of any bonded 262.14 debt incurred by any component district in the proportion which 262.15 the net tax capacity of that part of a preexisting district 262.16 which is included in the newly created district bears to the net 262.17 tax capacity of the entire preexisting district as of the time 262.18 of the consolidation. 262.19 (c) If the plan for consolidation so provides, all the 262.20 taxable property in the newly created district will be taxable 262.21 for a portion of the bonded debt incurred by any component 262.22 district prior to the consolidation. 262.23 The county auditor shall make the apportionment required 262.24 under paragraphs (b) and (c)shall be made by the county auditor262.25and shall be incorporatedand incorporate the apportionment as 262.26 an annex to the order of the commissioner dividing the assets 262.27 and liabilities of the component parts. This subdivision shall 262.28 not relieve any property from any tax liability for payment of 262.29 any bonded obligation but taxable property in the newly created 262.30 district becomes primarily liable for the payment of bonded 262.31 debts to the extent of the proportion stated. 262.32 Sec. 30. Minnesota Statutes 1996, section 122.23, 262.33 subdivision 16c, is amended to read: 262.34 Subd. 16c. [BONDS; ELECTION.] The board of the newly 262.35 created district, when constituted as provided in subdivision 262.36 17, may provide for an election of that district on the issuance 263.1 of bonds. It may issue and sell bonds authorized at the 263.2 election, or bonds authorized at an election previously held in 263.3 any preexisting district wholly included within the newly 263.4 created district, or bonds for a purpose for which an election 263.5 is not required by law. The actions may be taken at any time 263.6 after the date of the county auditor's order issued under 263.7 subdivision 13, and before or after the date upon which the 263.8 consolidation becomes effective for other purposes, and taxes 263.9 for the payment of the bonds shall be levied upon all taxable 263.10 property in the newly created district. No bonds shall be 263.11 delivered to purchasers until 30 days after the date of the 263.12 county auditor's order. If within this period a notice of 263.13 appeal from the county auditor's order to the district court is 263.14 filed in accordance with section 127.25, no bonds shall be 263.15 delivered by the newly created district to purchasers unless: 263.16 (1) the county auditor's order is affirmed by final order 263.17 of the district court in the special proceeding, and a period of 263.18 30 days from the service of the final order expires without an 263.19 appeal being commenced; or,263.20 (2) if an appeal is taken, the order is affirmed and the 263.21 time for petitioning for further review has expired; except263.22that. Notwithstanding the pendency of the appeal, if all of the 263.23 territory of one and only one independent district maintaining a 263.24 secondary school is included in the newly created district, and 263.25 if the net tax capacity of taxable property in the territory 263.26 comprises 90 percent or more of the net tax capacity of all 263.27 taxable property in the newly created district, then the board 263.28 may issue, sell, and deliver any bonds voted by the preexisting 263.29 independent district and any bonds voted or otherwise authorized 263.30 by the newly created district,notwithstanding the pendency of263.31the appeal,and the bondsshallmust be paid by the levy of 263.32 taxes upon the property within the territory of the preexisting 263.33 independent district and within the other areas, if any, that 263.34 are finally determined to be properly included within the newly 263.35 created district. In any election held in the newly created 263.36 district as authorized in the preceding sentence, all qualified 264.1 electors residing within the area of that district as defined in 264.2 the county auditor's order shall be entitled to vote, but the 264.3 votes cast by residents of former districts or portions of 264.4 former districts included in the area, other than the 264.5 independent district maintaining the secondary school, shall be 264.6 received and counted separately. The bondsshallmust not be 264.7 issued and sold unless authorized by a majority of the votes 264.8 cast thereon by electors of the independent district maintaining 264.9 the secondary school, and also by a majority of the votes cast 264.10 thereon by electors residing within the entire area of the newly 264.11 created district. 264.12 Sec. 31. Minnesota Statutes 1996, section 122.23, 264.13 subdivision 18, is amended to read: 264.14 Subd. 18. [BOARD ELECTION; DUTIES.] (a) The county auditor 264.15 shall determine a date, not less than 30 nor more than 60 days 264.16 from the date that the order setting the effective date of the 264.17 consolidation according to subdivision 13 was issued,upon which264.18date shall be heldto hold a special election in the district 264.19 for the purpose of electing a board of six members for terms of 264.20 four years and until a successor is elected and qualifies 264.21 according to provisions of law governing the election of board 264.22 members in independent districts. Notwithstanding the 264.23 foregoing, three members of the first board must be elected to 264.24 terms that expire on the first Monday in January following the 264.25 first regularly scheduled school district general election that 264.26 occurs more than six months after the election of the first 264.27 board and three members must be elected to terms that expire on 264.28 the first Monday in January following the second school district 264.29 general election that occurs more than six months after the 264.30 election of the first board. If the first board consists of 264.31 seven members, then four members may be elected at either the 264.32 first or second regularly scheduled school district general 264.33 election following the election of the first board. If the 264.34 resolution or petition for consolidation pursuant to subdivision 264.35 2 proposed the establishment of separate election districts, 264.36 these members shall be elected from separate election districts 265.1 according to the provisions of that resolution or petition and 265.2 of chapter 205A. 265.3 (b) The county auditor shall give ten days' posted notice 265.4 of election in the area in which the election is to be held and 265.5 also ifthere bea newspaper is published in the proposed new 265.6 district, one weeks' published notice shall be given. The 265.7 noticeshallmust specify the time, place, and purpose of the 265.8 election. 265.9 (c) Any person desiring to be a candidate for a school 265.10 election shall file an application with the county auditor to 265.11 have the applicant's name placed on the ballot for such office, 265.12 specifying the term for which the application is made. The 265.13 applicationshallmust be filed not less than 21 days before the 265.14 election. 265.15 (d) The county auditor shall prepare, at the expense of the 265.16 county, necessary ballots for the election of officers, placing 265.17 thereon the names of the proposed candidates for each office. 265.18 The ballotsshallmust be marked and signed as official ballots 265.19 and shall be used exclusively at the election. The county 265.20 auditor shall determine the number of voting precincts and the 265.21 boundaries of each. The county auditor shall determine the 265.22 location of polling places and the hours the polls shall be open 265.23 and shall appoint three election judges for each polling place 265.24 who shall act as clerks of election. Election judges shall 265.25 certify ballots and results to the county auditor for tabulation 265.26 and canvass. 265.27 (e) After making a canvass and tabulation, the county 265.28 auditor shall issue a certificate of election to the candidate 265.29 for each office who received the largest number of votes cast 265.30 for the office. The county auditor shall deliver such 265.31 certificate to the person entitledtheretoto a certificate by 265.32 certified mail, and each person so certified shall file an 265.33 acceptance and oath of office with the county auditor within 30 265.34 days of the date of mailing of the certificate. A person who 265.35 fails to qualify prior to the time specified shall be deemed to 265.36 have refused to serve, but such filing may be made at any time 266.1 before action to fill vacancy has been taken. 266.2 (f) The board of each district included in the new enlarged 266.3 district shall continue to maintainschoolthe schools therein 266.4 until the effective date of the consolidation. Such boards 266.5 shall have power and authority only to make such contracts, to 266.6 do such things as are necessary tomaintainproperly maintain 266.7 the schools for the period prior to that date, and to certify to 266.8 the county auditor according to levy limitations applicable to 266.9 the component districts the taxes collectible in the calendar 266.10 year when the consolidation becomes effective. 266.11 (g)It shall be the immediate duty ofThe newly elected 266.12 board of thenewenlarged district has the immediate duty,when266.13 after the membersthereofhave qualified and the board has been 266.14 organized, to plan for the maintenance of the school or schools 266.15 of the new district for the next school year, to enter into the 266.16 necessary negotiations and contracts for the employment of 266.17 personnel, purchase of equipment and supplies, and other 266.18 acquisition and betterment purposes, when authorized by the 266.19 voters to issue bonds under the provisions of chapter 475; and. 266.20 On the effective date of the consolidationto, the newly elected 266.21 board must assume the full duties of the care, management and 266.22 control of the new enlarged district. The board of the new 266.23 enlarged districtshallmust give due consideration to the 266.24 feasibility of maintaining such existing attendance centers and 266.25 of establishing such other attendance centers, especially in 266.26 rural areas, as will afford equitable and efficient school 266.27 administration and assure the convenience and welfare of the 266.28 pupils residing in the enlarged district. The obligations of 266.29 the new board to teachers employed by component districts shall 266.30 be governed by the provisions of section 122.532. The 266.31 obligations of the new board to nonlicensed employees employed 266.32 by component districts is governed by subdivision 18a. 266.33 Sec. 32. Minnesota Statutes 1996, section 122.23, 266.34 subdivision 18a, is amended to read: 266.35 Subd. 18a. [NONLICENSED EMPLOYEES.] (a) As of the 266.36 effective date of a consolidation of two or more districts or 267.1 parts of them, each nonlicensed employee employed by an affected 267.2 district must be assigned to the newly created district. 267.3 (b) As of the effective date of a consolidation, any 267.4 employee organization may petition the commissioner of the 267.5 bureau of mediation services for a certification election under 267.6 chapter 179A. An organization certified as the exclusive 267.7 representative for nonlicensed employees in a particular 267.8 preexisting district continues as the exclusive representative 267.9 for those particular employees for a period of 90 days from the 267.10 effective date of a consolidation. If a petition for 267.11 representation of nonlicensed employees is filed within 90 days, 267.12 an exclusive representative for those particular nonlicensed 267.13 employees continues as the exclusive representative until the 267.14 bureau of mediation services certification proceedings are 267.15 concluded. 267.16 (c) The terms and conditions of employment of nonlicensed 267.17 employees assigned to the newly created district are temporarily 267.18 governed by contracts executed by an exclusive representative 267.19 for a period of 90 days from the effective date of the 267.20 consolidation. If a petition for representation is filed with 267.21 the bureau of mediation services within the 90 days, the 267.22 contractual terms and conditions of employment for those 267.23 nonlicensed employees who were governed by a preexisting 267.24 contract continue in effect until the bureau of mediation 267.25 services proceedings are concluded and, if an exclusive 267.26 representative has been elected, until successor contracts are 267.27 executed between the board of the newly created district and the 267.28 new exclusive representative. The terms and conditions of 267.29 employment of nonlicensed employees assigned to the newly 267.30 created district who were not governed by a collective 267.31 bargaining agreement at the time of the consolidation are 267.32 governed by the policies of the board of the newly created 267.33 district. 267.34 (d) The date of first employment in the newly created 267.35 district is the date on which services were first performed by 267.36 the employee in the preexisting district. Any sick leave, 268.1 vacation time, or severance pay benefits accumulated under 268.2 policies of the preexisting district or contracts between the 268.3 exclusive representatives and the board of the preexisting 268.4 district continue to apply in the newly created district to the 268.5 employees of the preexisting districts, subject to any maximum 268.6 accumulation limitations negotiated in a successor contract. 268.7 Future leaves of absence, vacations, or other benefits to be 268.8 accumulated in the newly created district are governed by board 268.9 policy or by contract between the exclusive representative of an 268.10 appropriate unit of employees and the board of the newly created 268.11 district. The board of the newly created districtshallmust 268.12 provide, to transferred nonlicensed employees, open enrollment 268.13 in all insurance plans with no limit on preexisting conditions. 268.14 Sec. 33. Minnesota Statutes 1996, section 122.23, 268.15 subdivision 20, is amended to read: 268.16 Subd. 20. [RETIREMENT INCENTIVES.] (a) For consolidations 268.17 effective July 1, 1994, and thereafter, aschoolboard of a 268.18 district may offer early retirement incentives to licensed and 268.19 nonlicensed staff. The early retirement incentives that the 268.20 board may offer are: 268.21 (1) the payment of employer pension plan contributions for 268.22 a specified period of allowable service credit for district 268.23 employees who have at least ten years of allowable service 268.24 credit in the applicable pension plan under paragraph (b); 268.25 (2) an extended leave of absence for an eligible employee 268.26 under section 125.60; 268.27 (3) severance payment incentives under paragraph (c); and 268.28 (4) the employer payment of the premiums for continued 268.29 health insurance coverage under paragraph (d). 268.30 These incentives may only be offered to employees who 268.31 terminate active employment with theschooldistrict or who 268.32 enter into an extended leave of absence as a result of the 268.33 consolidation, whichever applies. The board may determine the 268.34 staff to whom the incentives are offered. Unilateral 268.35 implementation of this section by aschoolboard is not an 268.36 unfair labor practice under chapter 179A. 269.1 (b) An employee with at least ten years of allowable 269.2 service credit in the applicable pension plan who is offered an 269.3 early retirement incentive under paragraph (a), clause (1), may 269.4 purchase up to five additional years of allowable service credit 269.5 from the applicable pension plan. To do so, the former employee 269.6 must pay the member contributions to the pension plan annually 269.7 in a manner and in accord with a schedule specified by the 269.8 executive director of the applicable fund. If the former 269.9 employee makes the member contribution, the boardshallmust 269.10 make the applicable employer contribution. The salary used to 269.11 determine these contributions is the salary of the person in the 269.12 last year that the former employee was employed by the 269.13 district. During the period of continuing member and employer 269.14 contributions, the person is not considered to be an active 269.15 member of the applicable pension plan, is not eligible for any 269.16 active member disability or survivorship benefit coverage, and 269.17 is not included in any postemployment termination benefit plan 269.18 changes unless the applicable benefit legislation provides 269.19 otherwise. Continued eligibility to purchase service credit 269.20 under this paragraph expires if the person is subsequently 269.21 employed during the service purchase period by a public employer 269.22 with retirement coverage under a pension plan specified in 269.23 section 356.30, subdivision 3. 269.24 (c) Severance payment incentives must conform with sections 269.25 465.72, 465.721, and 465.722. 269.26 (d) The board may offer a former employee continued 269.27 employer-paid health insurance coverage. Coverage may not 269.28 extend beyond age 65 or the end of the first month in which the 269.29 employee is eligible for employer-paid health insurance coverage 269.30 from a new employer. For purposes of this subdivision, 269.31 "employer-paid health insurance coverage" means medical, 269.32 hospitalization, or health insurance coverage provided through 269.33 an insurance company that is licensed to do business in the 269.34 state and for which the employing unit pays more than one-half 269.35 of the cost of the insurance premiums. 269.36 (e) Aschoolboard may offer these incentives beginning on 270.1 the day that the consolidation is approved under section 122.23, 270.2 subdivision 12 or, if an election is not called under section 270.3 122.23, subdivision 9 or 10, on the day that the plat is 270.4 approved by the commissioner. A board may offer these 270.5 incentives until the June 30 following the effective date of the 270.6 consolidation. 270.7 Sec. 34. Minnesota Statutes 1996, section 122.241, is 270.8 amended to read: 270.9 122.241 [COOPERATION AND COMBINATION.] 270.10 Subdivision 1. [SCOPE.] Sections 122.241 to 122.248 270.11 establish procedures forschoolboards that adopt, by 270.12 resolution, a five-year written agreement: 270.13 (1) to provide at least secondary instruction cooperatively 270.14 for at least one or two years, if the districts cooperate 270.15 according to subdivision 2; and 270.16 (2) to combine into one district. 270.17 Subd. 2. [COOPERATION REQUIREMENTS.] Cooperating districts 270.18shallmust: 270.19 (1) implement a written agreement according to section 270.20 122.541 no later than the first year of cooperation; 270.21 (2) all be members of one education district, if any one of 270.22 the districts is a member, no later than the end of the second 270.23 year of cooperation; and 270.24 (3) all be members of one SC, if any one of the districts 270.25 is a member. 270.26 Clause (1) does not apply to a district that implemented an 270.27 agreement for secondary education, according to section 122.535, 270.28 during any year before the 1991-1992 school year. If the 270.29 districts cooperate for one or more years, the agreement may be 270.30 continued during those years. 270.31 Subd. 3. [COMBINATION REQUIREMENTS.] Combining districts 270.32 must be contiguous and meet one of the following requirements at 270.33 the time of combination: 270.34 (1) at least two districts with at least 400 resident 270.35 pupils enrolled in grades 7 through 12 in the combined district 270.36 and projections, approved by the departmentof children,271.1families, and learning, of enrollment at least at that level for 271.2 five years; 271.3 (2) at least two districts if either: 271.4 (i) both of the districts qualify for secondary sparsity 271.5 revenue under section 124A.22, subdivision 6, and have an 271.6 average isolation index over 23; or 271.7 (ii) the combined district qualifies for secondary sparsity 271.8 revenue; 271.9 (3) at least three districts with fewer than 400 resident 271.10 pupils enrolled in grades 7 through 12 in the combined district; 271.11 or 271.12 (4) at least two districts with fewer than 400 resident 271.13 pupils enrolled in grades 7 through 12 in the combined district 271.14 if either district is located on the border of the state. 271.15 A combination under clause (2), (3), or (4) must be 271.16 approved by the commissionerof children, families, and271.17learning. The commissioner shall disapprove a combination under 271.18 clause (2), (3), or (4) if the combination is educationally 271.19 unsound or would not reasonably enable the districts to fulfill 271.20 statutory and rule requirements. 271.21 Sec. 35. Minnesota Statutes 1996, section 122.242, 271.22 subdivision 1, is amended to read: 271.23 Subdivision 1. [ADOPTION AND STATE BOARD REVIEW.] Each 271.24schoolboard must adopt, by resolution, a plan for cooperation 271.25 and combination. The plan must address each item in this 271.26 section. The plan must be specific for any item that will occur 271.27 within three years and may be general or set forth alternative 271.28 resolutions for an item that will occur in more than three 271.29 years. The plan must be submitted to the state board of 271.30 education and the secretary of state for review and comment. 271.31 Significant modifications and specific resolutions of items must 271.32 be submitted to the state board for review and comment. In the 271.33 official newspaper of each district proposed for combination, 271.34 theschoolboard must publish at least a summary of the adopted 271.35 plans, each significant modification and resolution of items, 271.36 and each state board review and comment. 272.1 Sec. 36. Minnesota Statutes 1996, section 122.242, 272.2 subdivision 3, is amended to read: 272.3 Subd. 3. [BOARD FORMATION.] The plan must state: 272.4 (1) whether the new district would have one electedschool272.5 board or whether it would have one electedschoolboard and one 272.6 elected board for each elementary school exercising powers and 272.7 duties delegated to it by theschoolboard of the entire 272.8 district; 272.9 (2) how many of the existing members of each district would 272.10 become members of theschoolboard of the combined district and, 272.11 if so, a method to gradually reduce the membership to six or 272.12 seven; and 272.13 (3) if desired, election districts that include the 272.14 establishment of separate areas from each of the combining 272.15 districts from whichschoolboard members will be elected, the 272.16 boundaries of these election districts, and the initial term of 272.17 the member elected from each of these election districts. 272.18 Sec. 37. Minnesota Statutes 1996, section 122.242, 272.19 subdivision 8, is amended to read: 272.20 Subd. 8. [REFERENDUM.] The plan must set forth: 272.21 (1) procedures for a referendum, held prior to the year of 272.22 the proposed combination, to approve combining theschool272.23 districts; and 272.24 (2) whether a majority of those voting in each district 272.25 proposed for combination or a majority of those voting on the 272.26 question in the entire area proposed for combination would be 272.27 needed to pass the referendum. 272.28 Sec. 38. Minnesota Statutes 1996, section 122.242, 272.29 subdivision 9, is amended to read: 272.30 Subd. 9. [FINANCES.] The plan must state: 272.31 (1) whether debt service for the bonds outstanding at the 272.32 time of combination remains solely with the district that issued 272.33 the bonds or whether all or a portion of the debt service for 272.34 the bonds will be assumed by the combined district and paid by 272.35 the combined district on behalf of the district that issued the 272.36 bonds; 273.1 (2) whether obligations for a capital loan or energy loan 273.2 made according to section 216C.37 or sections 298.292 to 298.298 273.3 outstanding at the time of combination remain solely with the 273.4 district that obtained the loan, or whether all or a portion of 273.5 all the loan obligations will be assumed by the combined 273.6 district and paid by the combined district on behalf of the 273.7 district that obtained the loan; 273.8 (3) the treatment of debt service levies, down payment 273.9 levies under section 124.82, and referendum levies; 273.10 (4) whether the cooperating or combined district will levy 273.11 for reorganization operating debt according to section 121.915, 273.12 clause (1); and 273.13 (5) two- and five-year projections, prepared by the 273.14 departmentof children, families, and learningupon the request 273.15 of any district, of revenues, expenditures, and property taxes 273.16 for each district if it cooperated and combined and if it did 273.17 not. 273.18 Sec. 39. Minnesota Statutes 1996, section 122.243, is 273.19 amended to read: 273.20 122.243 [STATE BOARD AND VOTER APPROVAL.] 273.21 Subdivision 1. [COMMISSIONER APPROVAL.] Before submitting 273.22 the question of combiningschooldistricts to the voters at a 273.23 referendum, the cooperating districtsshallmust submit the 273.24 proposed combination to the commissionerof children, families,273.25and learning. The commissioner shall determine the date for 273.26 submission and may require any information it determines 273.27 necessary. The commissioner shall disapprove the proposed 273.28 combination if it is educationally unsound, will not reasonably 273.29 enable the combined district to fulfill statutory and rule 273.30 requirements, or if the plan or modifications are incomplete. 273.31 If disapproved by the commissioner, the referendum shall be 273.32 postponed, but not canceled, by theschoolboards. 273.33 Subd. 2. [VOTER APPROVAL.] A referendum on the question of 273.34 combinationshallmust be conducted during the first or second 273.35 year of cooperation for districts that cooperate according to 273.36 section 122.241, or no more than 18 months before the effective 274.1 date of combination for districts that do not cooperate. The 274.2 referendumshallmust be on a date called by theschoolboards. 274.3 The referendumshallmust be conducted by theschoolboards 274.4 according to the Minnesota election law, as defined in section 274.5 200.01. If the referendum fails, the same question or a 274.6 modified question may be submitted. If the referendum fails 274.7 again, the districtsshallmust modify their cooperation and 274.8 combination plan. A third referendum may be conducted. If a 274.9 second or third referendum is conducted after October 1, the 274.10 newly combined district may not levy under section 124.2725 274.11 until the following year. Referendums shall be conducted on the 274.12 same date in all districts. 274.13 Sec. 40. Minnesota Statutes 1996, section 122.245, 274.14 subdivision 2, is amended to read: 274.15 Subd. 2. [NONLICENSED EMPLOYEES TERMINATION.] If 274.16 compatible plans are not negotiated according to section 274.17 122.242, subdivision 5, theschoolboards shall comply with this 274.18 subdivision with respect to nonlicensed employees. Nonlicensed 274.19 employees whose positions are discontinued as a result of 274.20 cooperation or combination, as applicable, shall be: 274.21 (1) employed by a cooperating board or the combined board, 274.22 if possible; 274.23 (2) assigned to work in a cooperating district or the 274.24 combined district, if possible; or 274.25 (3) terminated in the inverse order in which they were 274.26 employed in a district, according to a combined seniority list 274.27 of nonlicensed employees in the cooperating or combined 274.28 district, as applicable. 274.29 Sec. 41. Minnesota Statutes 1996, section 122.246, is 274.30 amended to read: 274.31 122.246 [COUNTY AUDITOR PLAT.] 274.32 Upon the request of two or more districts that have adopted 274.33 a resolution to cooperate and combine, the county auditor shall 274.34 prepare a plat. If the proposed combined district is located in 274.35 more than one county, the requestshallmust be submitted to the 274.36 county auditor of the county that has the greatest land area in 275.1 the proposed district. The platshallmust show: 275.2 (1) the boundaries of each of the present districts; 275.3 (2) the boundaries of the proposed district; 275.4 (3) the boundaries of proposed election districts, if 275.5 requested; and 275.6 (4) other information deemed pertinent by theschoolboards 275.7 or the county auditor. 275.8 Sec. 42. Minnesota Statutes 1996, section 122.247, 275.9 subdivision 2, is amended to read: 275.10 Subd. 2. [BONDED DEBT.] Debt service for bonds outstanding 275.11 at the time of the combination may be levied by the 275.12 combinedschoolboard consistent with the plan adopted according 275.13 to section 122.242, and any subsequent modifications, subject to 275.14 section 475.61. The primary obligation to pay the bonded 275.15 indebtedness that is outstanding on the effective date of 275.16 combination remains with the district that issued the bonds. 275.17 However, the combined district may make debt service payments on 275.18 behalf of a preexisting district. 275.19 Sec. 43. Minnesota Statutes 1996, section 122.247, 275.20 subdivision 2a, is amended to read: 275.21 Subd. 2a. [CAPITAL LOAN.] The combinedschoolboard may 275.22 levy for the obligations for a capital loan outstanding at the 275.23 time of combination, consistent with the plan adopted according 275.24 to section 122.242 and any subsequent modifications. The 275.25 primary obligation to levy as required by the capital loan 275.26 remains with taxable property in the preexisting district that 275.27 obtained the capital loan. However, the obligation of a capital 275.28 loan may be extended to all of the taxable property in the 275.29 combined district. 275.30 Sec. 44. Minnesota Statutes 1996, section 122.248, is 275.31 amended to read: 275.32 122.248 [REPORTS TO DEPARTMENT OF CHILDREN, FAMILIES, AND 275.33 LEARNING.] 275.34 Cooperating districts may submit joint reports and jointly 275.35 provide information required by the departmentof children,275.36families, and learning. The joint reports must allow 276.1 information to be attributed to each district. A combined 276.2 district must report and provide information as a single unit. 276.3 Sec. 45. Minnesota Statutes 1996, section 122.25, 276.4 subdivision 2, is amended to read: 276.5 Subd. 2. [BOARD ELECTION.] At the annual meeting, if a 276.6 majority of the votes cast on the question favors the conversion 276.7 to an independent district, a board of six members shall be 276.8 elected. Nominations may be made from the floor of the meeting 276.9 and election shall be by secret ballot. All board members 276.10 elected at this meeting shall serve for terms expiring on the 276.11 third Tuesday in the next Maynextfollowing the election on 276.12 which date a regular annual election shall be held in the manner 276.13 provided by law. At this first annual election for independent 276.14 districts, six directors shall be elected, two to hold office 276.15 until July 1 following the next annual election, two to hold 276.16 office until the expiration of one year from said July 1 and two 276.17 to hold office until the expiration of two years from said July 276.18 1; the time which each director shall hold office being 276.19 designated on the ballot. 276.20 Sec. 46. Minnesota Statutes 1996, section 122.25, 276.21 subdivision 3, is amended to read: 276.22 Subd. 3. [IDENTIFICATION NUMBER.] If the organization of 276.23 the district is changed from common to independent at the 276.24 meeting, the clerk shallforthwithnotify the auditor and the 276.25 commissioner. 276.26 Upon receipt of such notification, the commissioner shall 276.27forthwithassign a new identification number to the district and 276.28 shall notify the auditor and the clerk of the district thereof. 276.29 Sec. 47. Minnesota Statutes 1996, section 122.32, is 276.30 amended to read: 276.31 122.32 [REMAINING DISTRICTS, ACTION OF COUNTY BOARD; 276.32 ELECTION.] 276.33 Subdivision 1. [DISSOLUTION.]If there beAny organized 276.34schooldistrict not maintaining a classified school within the 276.35 district, except those districts which have a contract with a 276.36 state university or with the board of regents of the University 277.1 of Minnesota for the education of all the children of the 277.2 district,such districtshall hereby be dissolved as of the date 277.3 the district ceases to maintain a classified school. Any such 277.4 district not maintaining a classified schoolshall forthwith277.5 must be attached by order of the county board to such district 277.6 maintaining classified elementary or secondary schools upon 277.7 notice and hearing as provided in section 122.22 for the 277.8 attachment of dissolved districts. 277.9 Subd. 2. [SPECIAL ELECTION.] Prior to the order of the 277.10 county board, the board may direct the county auditor to call a 277.11 special election in the manner and form in which district 277.12 elections are held. The purpose of the election shall be to 277.13 determine to which district or districts the dissolved district 277.14 shall be attached. The county board after hearingshallmust 277.15 determine the form of question as it should appear on the 277.16 ballot. The results of the election shall be advisory in nature 277.17 only. 277.18 Subd. 3. [ORDER; ASSET AND LIABILITY TRANSFER.] The county 277.19 auditor shall certify the results of the electionshall be277.20certified by the county auditorto the county boardand. Within 277.21 45 days after such election, the county boardshallmust issue 277.22 its order dissolving the district. The ordershallmust also 277.23 attach the dissolved district to a proper district as determined 277.24 by the county board, and a copy of such ordershallmust be 277.25 filed with the commissionerof children, families, and277.26learning. Title to all the property, real and personal, of the 277.27 district dissolved passes to the district to which such 277.28 dissolved district is attached. If a district is divided by 277.29 virtue of the proceedings the county board shall issue its order 277.30 providing for the division of the current assets and liabilities 277.31 according to such terms as it may deem just and equitable. If 277.32 the order of the county board attaches any land area to a 277.33 district with bonded debt, the taxable property in such area 277.34 assumes its proportionate share of the authorized and 277.35 outstanding debt of the district to which it is attached. 277.36 Sec. 48. Minnesota Statutes 1996, section 122.34, is 278.1 amended to read: 278.2 122.34 [PRIVATE SCHOOLS IN NONOPERATING DISTRICTS.] 278.3 Section 122.32 shall not apply to anyschooldistrict in 278.4 which is located any existing private school maintaining 278.5 elementary and secondary education for 75 percent of eligible 278.6 pupils within the district and complying with the requirements 278.7 of section 120.101. 278.8 Sec. 49. Minnesota Statutes 1996, section 122.355, is 278.9 amended to read: 278.10 122.355 [BORDER DISTRICTS; CONTINUED OPERATION.] 278.11 Subdivision 1. [BORDER DISTRICTS.] The common school 278.12 districts situated along the border of the state of Minnesota 278.13 and the state of Wisconsin which have, for the preceding 25 278.14 years, prior to May 26, 1965 been educating pupils of their 278.15 district inschooldistricts in Wisconsin may continue to 278.16 operate as common school districts notwithstanding that any of 278.17 suchschooldistricts do not maintain classified schools. 278.18 Suchschooldistricts are not subject to the terms and 278.19 provisions of sections 122.32 to 122.52. 278.20 Subd. 2. [CONTINUED OPERATION.] The provisions of 278.21 subdivision 1 shall remain in effect as long as theschool278.22 district does not discontinue the practice of education for 278.23 their district as described in subdivision 1. 278.24 Sec. 50. Minnesota Statutes 1996, section 122.41, is 278.25 amended to read: 278.26 122.41 [DUTY TO MAINTAIN ELEMENTARY AND SECONDARY SCHOOLS.] 278.27 Eachschooldistrictshallmust maintain classified 278.28 elementary and secondary schools, grades 1 through 12, unless 278.29 the district is exempt according to section 122.34 or 122.355, 278.30 has made an agreement with another district or districts as 278.31 provided in sections 122.535, 122.541, or sections 122.241 to 278.32 122.248, or 122.93, subdivision 8, or has received a grant under 278.33 sections 124.492 to 124.495. A district that has an agreement 278.34 according to sections 122.241 to 122.248 or 122.541shallmust 278.35 operate a school with the number of grades required by those 278.36 sections. A district that has an agreement according to section 279.1 122.535 or 122.93, subdivision 8, or has received a grant under 279.2 sections 124.492 to 124.495shallmust operate a school for the 279.3 grades not included in the agreement, but not fewer than three 279.4 grades. 279.5 Sec. 51. Minnesota Statutes 1996, section 122.43, is 279.6 amended to read: 279.7 122.43 [PHASE OUT OF DISSOLVED DISTRICT.] 279.8 Subd. 2. [MAINTAIN SCHOOLS.] The board of each district so 279.9 dissolved shall continue to maintainschoolschools until all 279.10 its territory has been attached to a proper district not later 279.11 than July 1. Such boards shall only make such contracts and do 279.12 such things as are necessary to properly maintain schools 279.13properlyfor the period they may be in session prior to the 279.14 attachment. 279.15 Sec. 52. Minnesota Statutes 1996, section 122.44, is 279.16 amended to read: 279.17 122.44 [PROCEDURE FOR ATTACHMENT TO ORGANIZED DISTRICTS.] 279.18 Subdivision 1. [ATTACHMENT.] Upon notice and hearing, as 279.19 provided in section 122.22 for the attachment of dissolved 279.20 districts, all territory of school districts dissolved by 279.21 sections 122.41 to 122.52 and all area of the state not in a 279.22 district maintaining classified elementary and secondary schools 279.23shallmust be attached by order of the county board to organized 279.24 districts maintaining classified elementary and secondary 279.25 schools, grades 1 through 12, unless a district has made an 279.26 agreement with another district or districts as provided in 279.27 section 122.535 or 122.541. 279.28 Sec. 53. Minnesota Statutes 1996, section 122.45, 279.29 subdivision 2, is amended to read: 279.30 Subd. 2. [TAXABLE PROPERTY.] As of the effective date of 279.31 the attachment, all the taxable property in the newly enlarged 279.32 district is taxable for the payment of any bonded debt 279.33theretoforealready incurred by any component district in the 279.34 proportion which the net tax capacity of that part of a 279.35 preexisting district which is included in the newly enlarged 279.36 district bears to the net tax capacity of the entire preexisting 280.1 district as of the time of the attachment. The county auditor 280.2 shall make this apportionmentshall be made by the county280.3auditor and shall be incorporatedand incorporate the 280.4 apportionment as an annex to the order of the commissioner 280.5 dividing the assets and liabilities of the component parts. 280.6 This subdivision shall not relieve any property from any tax 280.7 liability for payment of any bonded obligation but taxable 280.8 property in the newly enlarged district becomes primarily liable 280.9 for the payment of bonded debts to the extent of the proportion 280.10 stated. 280.11 Sec. 54. Minnesota Statutes 1996, section 122.45, 280.12 subdivision 3a, is amended to read: 280.13 Subd. 3a. [REIMBURSEMENT; SPECIAL LEVY.] (a) Liabilities 280.14 of a dissolved district existing at the time of the attachment 280.15 other than bonded debt within the purview of subdivision 2shall280.16 must be obligations of the consolidated district after 280.17 attachment (in the amount and kind determined by the 280.18 commissioner according to subdivision 1, where a dissolved 280.19 district is divided), for the payment of which the consolidated 280.20 district has a right to reimbursement by special levy or 280.21 levies. The amount of reimbursement will be equal to the 280.22 liabilities of the dissolved district for which the consolidated 280.23 district is obligated less the aggregate of the following which 280.24 has been or will be received by the consolidated district at or 280.25 after the time of attachment from or as a result of the 280.26 dissolution and attachment of the dissolved district: 280.27 (1) all taxes inuring to the consolidating district upon 280.28 levies made by the dissolved district; 280.29 (2) all cash, bank accounts, investments, and other current 280.30 assets; 280.31 (3) earned state aids of the dissolved districts; 280.32 (4) returns from the sale of property of the dissolved 280.33 district. 280.34 (b) The amount of such special levy so computed shall be 280.35 certified to the county auditor with the other tax requirements 280.36 of the consolidated district but separately stated and 281.1 identified. The auditor shall add the amount of special levy so 281.2 certified to the school rate for the territory in the 281.3 consolidated district which came from the dissolved district and 281.4 include it in the levy on the taxable property in that 281.5 territory; provided,. The county auditor shall not spread more 281.6 of the amount certified for special levy in any year than will 281.7 amount to 20 percent of the school levy without the special 281.8 levy, leaving the remaining part of the certified amount for 281.9 levy in successive years without further certification. Any 281.10 amount of reimbursement to which it is entitled omitted by the 281.11 consolidated district from its initial certification for special 281.12 levy may be certified in a subsequent year for levy in the same 281.13 manner as the levy upon initial certification. 281.14 The levy authorized by this subdivision shall be in 281.15 addition to those otherwise authorized for aschooldistrict. 281.16 Sec. 55. Minnesota Statutes 1996, section 122.46, is 281.17 amended to read: 281.18 122.46 [OFFICERS AND TEACHERS, TRANSITIONAL PROVISIONS.] 281.19 Subdivision 1. [BOARD.] The board of the district 281.20 maintaining a secondary school to which district is attached 281.21 territory of districts discontinued by sections 122.41 to 122.52 281.22shallmust assume the duties and responsibilities of the board 281.23 of the district so enlarged for the balance of the term to which 281.24 the members were elected. At the next annual school election 281.25 the successors to the members whose terms then expire shall be 281.26 elected by the legally qualified voters of the newly enlarged 281.27 district. Thereafter board members shall be elected according 281.28 to the election procedure established for the election of board 281.29 members in independent districts. 281.30 Sec. 56. Minnesota Statutes 1996, section 122.47, is 281.31 amended to read: 281.32 122.47 [SPECIAL SCHOOL DISTRICTS, APPLICATION.] 281.33 When provisions of sections 122.41 to 122.52 are made to 281.34 apply to any special school district, such district shall hereby 281.35 be converted to an independent school district on the effective 281.36 date specified in the orders issued under provisions of sections 282.1 122.41 to 122.52. All applicable provisions of Minnesota 282.2 Statutes 1965, section 122.26, relating to such conversions 282.3 shall otherwise be in force. To the extent that any law or 282.4 charter provision of any special district is inconsistent with 282.5 the status of an independent school district or the powers 282.6 common to independent school districts, such law or charter 282.7 provision is hereby repealed. Provided, however, that nothing 282.8 in sections 122.41 to 122.52 shall in any way invalidate 282.9 remaining portions of such laws or home rule charters, or the 282.10 continuance of such special school districts to which no new 282.11 territory is attached under the provisions of sections 122.41 to 282.12 122.52. 282.13 Sec. 57. Minnesota Statutes 1996, section 122.48, is 282.14 amended to read: 282.15 122.48 [PRIVATE SCHOOLS.] 282.16 Sections 122.41 to 122.46 shall not apply to anyschool282.17 district in which is located any existing private school 282.18 maintaining elementary and secondary education for 75 percent of 282.19 the eligible pupils within the district and complying with the 282.20 requirements of section 120.101. 282.21 Sec. 58. Minnesota Statutes 1996, section 122.531, 282.22 subdivision 2c, is amended to read: 282.23 Subd. 2c. [DISCONTINUED REFERENDUM REVENUE.] If the plan 282.24 for consolidation provides for discontinuance of referendum 282.25 revenue previously approved by voters of the component districts 282.26 pursuant to section 124A.03, subdivision 2, or its predecessor 282.27 provision, the newly created districtshallmust not receive 282.28 referendum revenue unless the voters of the newly created 282.29 district authorize referendum revenue pursuant to section 282.30 124A.03, subdivision 2. 282.31 Sec. 59. Minnesota Statutes 1996, section 122.531, 282.32 subdivision 5a, is amended to read: 282.33 Subd. 5a. [SUPPLEMENTAL REVENUE.] (a) For purposes of 282.34 computing the supplemental revenue and the minimum allowance 282.35 under section 124A.22, subdivision 9, paragraph (b), in the case 282.36 of a consolidation, the newly created district's 1991-1992 283.1 revenue and 1991-1992 actual pupil units are the sum of the 283.2 1991-1992 revenue and 1991-1992 pupil units, respectively, of 283.3 the former districts comprising the new district. 283.4 (b) For purposes of computing the supplemental revenue and 283.5 the minimum allowance under section 124A.22, subdivision 9, 283.6 paragraph (b), in the case of a dissolution and attachment, a 283.7 district's 1991-1992 revenue is the revenue of the existing 283.8 district plus the result of the following calculation: 283.9 (1) the 1991-1992 revenue of the dissolved district divided 283.10 by 283.11 (2) the dissolved district's 1991-1992 actual pupil units, 283.12 multiplied by 283.13 (3) the pupil units of the dissolved district in the most 283.14 recent year before the dissolution allocated to the newly 283.15 created or enlarged district. 283.16 (c) In the case of a dissolution and attachment, the 283.17 departmentof children, families, and learningshall allocate 283.18 the pupil units of the dissolved district to the newly enlarged 283.19 district based on the allocation of the property on which the 283.20 pupils generating the pupil units reside. 283.21 Sec. 60. Minnesota Statutes 1996, section 122.531, 283.22 subdivision 9, is amended to read: 283.23 Subd. 9. [LEVY FOR SEVERANCE PAY OR EARLY RETIREMENT 283.24 INCENTIVES.] Theschoolboard of a newly created or enlarged 283.25 district to which part or all of a dissolved district was 283.26 attached according to section 122.22 may levy for severance pay 283.27 or early retirement incentives for licensed and nonlicensed 283.28 employees who resign or retire early as a result of the 283.29 dissolution or consolidation, if the commissionerof children,283.30families, and learningapproves the incentives and the amount to 283.31 be levied. The amount may be levied over a period of up to five 283.32 years andshallmust be spread in whole or in part on the 283.33 property of a preexisting district or the newly created or 283.34 enlarged district, as determined by theschoolboard of the 283.35 newly created or enlarged district. 283.36 Sec. 61. Minnesota Statutes 1996, section 122.5311, 284.1 subdivision 1, is amended to read: 284.2 Subdivision 1. [CAPITAL LOAN OBLIGATIONS.] If a district 284.3 has a capital loan outstanding at the time of reorganization 284.4 according to section 122.22, 122.23, or sections 122.241 to 284.5 122.248, and if the plan for reorganization provides for payment 284.6 of all or a portion of the capital loan obligation by the newly 284.7 created or enlarged district or makes no provision for payment, 284.8 all of the taxable property in the newly created or enlarged 284.9 district is taxable for the payment to the extent stated in the 284.10 plan. Notwithstanding any contract to the contrary, if all of 284.11 the taxable property in the newly created or enlarged district 284.12 is taxable for the payment of the capital loan and until the 284.13 capital loan is retired or canceled, the maximum effort debt 284.14 service levyshallmust be recalculated annually by the 284.15 departmentof children, families, and learningto be equal to 284.16 the required debt service levy plus an additional amount. The 284.17 additional amountshallmust be the greater of: 284.18 (i) zero, or 284.19 (ii) the maximum effort debt service levy of the 284.20 preexisting district minus the required debt service levy of the 284.21 preexisting district that received the capital loan. 284.22 For the purpose of the recalculation, additional bond 284.23 issues after the date of the reorganization shall not impact the 284.24 maximum effort debt service levy or the required debt service 284.25 levy. 284.26 Notwithstanding any contract to the contrary, the plan for 284.27 reorganization may specify that the obligation for a capital 284.28 loan remains solely with the preexisting district that incurred 284.29 the obligation. This subdivision does not relieve any property 284.30 from any tax liability for payment of any capital loan 284.31 obligation. 284.32 Sec. 62. Minnesota Statutes 1996, section 122.532, 284.33 subdivision 2, is amended to read: 284.34 Subd. 2. [TEACHER ASSIGNMENT.] (a) As of the effective 284.35 date of a consolidation in which a district is divided or the 284.36 dissolution of a district and its attachment to two or more 285.1 existing districts, each teacher employed by an affected 285.2 district shall be assigned to the newly created or enlarged 285.3 district on the basis of a ratio of the pupils assigned to each 285.4 district according to the new district boundaries. The district 285.5 receiving the greatest number of pupils must be assigned the 285.6 teacher with the greatest seniority, and the remaining teachers 285.7 must be alternately assigned to each district until the district 285.8 receiving the fewest pupils has received its ratio of teachers 285.9 who will not be retiring before the effective date of the 285.10 consolidation or dissolution. 285.11 (b) Notwithstanding paragraph (a), theschoolboard and the 285.12 exclusive representative of teachers in eachschooldistrict 285.13 involved in the consolidation or dissolution and attachment may 285.14 negotiate a plan for assigning teachers to each newly created or 285.15 enlarged district. 285.16 Sec. 63. Minnesota Statutes 1996, section 122.532, 285.17 subdivision 3a, is amended to read: 285.18 Subd. 3a. [INTERIM CONTRACTUAL AGREEMENTS.] (a) Until a 285.19 successor contract is executed between the newschoolboard and 285.20 the exclusive representative of the teachers of the new 285.21 district, theschoolboards of both districts and the exclusive 285.22 representatives of the teachers of both districts may agree: 285.23 (1) to comply with the contract of either district with 285.24 respect to all of the teachers assigned to the new district; or 285.25 (2) that each of the contracts shall apply to the teachers 285.26 previously subject to the respective contract. 285.27 (b) In the absence of an agreement according to paragraph 285.28 (a), the following shall apply: 285.29 (1) if the effective date is July 1 of an even-numbered 285.30 year, each of the contracts shall apply to the teachers 285.31 previously subject to the respective contract and shall be 285.32 binding on the newschoolboard; or 285.33 (2) if the effective date is July 1 of an odd-numbered 285.34 year, the contract of the district that previously employed the 285.35 largest proportion of teachers assigned to the new district 285.36 applies to all of the teachers assigned to the new district and 286.1 shall be binding on the newschoolboard. The application of 286.2 this section shall not result in a reduction in a teacher's 286.3 basic salary, payments for cocurricular or extracurricular 286.4 assignments, district contributions toward insurance coverages 286.5 or tax-sheltered annuities, leaves of absence, or severance pay 286.6 until a successor contract is executed between the newschool286.7 board and the exclusive representative. 286.8 Sec. 64. Minnesota Statutes 1996, section 122.532, 286.9 subdivision 4, is amended to read: 286.10 Subd. 4. [CONTRACTS; TERMINATION; TENURE.] Except as 286.11 provided in this section, the provisions of section 125.12 or 286.12 125.17 shall apply to the employment of each teacher by the new 286.13 employing district on the same basis as they would have applied 286.14 to the employment if the teacher had been employed by that new 286.15 district before the effective date of the consolidation or 286.16 dissolution and attachment. For the purpose of applying the 286.17 provisions of subdivision 3, clause (c), and the provisions of 286.18 section 125.12, subdivision 6b, eachschooldistrict must be 286.19 considered to have started school each year on the same date. 286.20 Sec. 65. Minnesota Statutes 1996, section 122.535, 286.21 subdivision 2, is amended to read: 286.22 Subd. 2. [AGREEMENT.] Theschoolboard may enter into one 286.23 or more agreements providing for instruction of its secondary 286.24 pupils in one or more districts. The agreementshallmust be 286.25 effective on July 1 and shall be for a specified or indefinite 286.26 number of years. The agreementshallmust set forth the 286.27 obligations of transportation, the tuition to be paid to the 286.28 providing district, and all additional charges and fees to be 286.29 paid to the providing district. The amount of tuition shall not 286.30 be subject to the provisions of section 124.18, subdivision 2. 286.31 The agreement may provide for negotiation of a plan for the 286.32 assignment or employment in a providing district as an exchange 286.33 teacher according to section 125.13, or placement on unrequested 286.34 leave of absence of teachers whose positions are discontinued as 286.35 a result of the agreement."Teacher" has the meaning given it286.36in section 125.12, subdivision 1.287.1 Sec. 66. Minnesota Statutes 1996, section 122.535, 287.2 subdivision 3, is amended to read: 287.3 Subd. 3. [INFORMATIONAL MEETING.] Before entering into 287.4 agreements permitted by subdivision 2 of this section, the 287.5schoolboardshallmust hold a public hearing. The boardshall287.6 must publish notice of the hearing in the newspaper with the 287.7 largest circulation in the district. If the board proposes to 287.8 enter into agreements with two or more districts, the board may 287.9 conduct separate or consolidated hearings. 287.10 Sec. 67. Minnesota Statutes 1996, section 122.535, 287.11 subdivision 4, is amended to read: 287.12 Subd. 4. [REVIEW AND COMMENT.] After the hearing required 287.13 by subdivision 3 and before entering into an agreement, the 287.14 boardshallmust submit the agreement to the commissionerof287.15children, families, and learningfor review and comment. 287.16 Sec. 68. Minnesota Statutes 1996, section 122.535, 287.17 subdivision 5, is amended to read: 287.18 Subd. 5. [AID PAYMENTS.] A district entering into an 287.19 agreement permitted in subdivision 2 of this sectionshallmust 287.20 continue to count its resident pupils who are educated in other 287.21 districts as resident pupils in the calculation of pupil units 287.22 for the purposes of state aids, levy limitations, and any other 287.23 purpose. A district may continue to provide transportation and 287.24 collect transportation aid for its resident pupils. For 287.25 purposes of aid calculations, the commissionerof children,287.26families, and learningmay adjust the cost per eligible pupil 287.27 transported to reflect changes in cost resulting from the 287.28 agreement, if any. 287.29 Sec. 69. Minnesota Statutes 1996, section 122.535, 287.30 subdivision 6, is amended to read: 287.31 Subd. 6. [SEVERANCE PAY.] A districtshallmust pay 287.32 severance pay to a teacher who is placed on unrequested leave of 287.33 absence by the district as a result of the agreement. A teacher 287.34 is eligible under this subdivision if the teacher: 287.35 (1) is a teacher,as defined in section 125.12, subdivision287.361,but not a superintendent; 288.1 (2) has a continuing contract with the district according 288.2 to section 125.12, subdivision 4. 288.3 The amount of severance payshallmust be equal to the 288.4 teacher's salary for the school year during which the teacher 288.5 was placed on unrequested leave of absence minus the gross 288.6 amount the teacher was paid during the 12 months following the 288.7 teacher's termination of salary, by an entity whose teachers by 288.8 statute or rule must possess a valid Minnesota teaching license, 288.9 and minus the amount a teacher receives as severance or other 288.10 similar pay according to a contract with the district or 288.11 district policy. These entities requiring a valid Minnesota 288.12 teaching license include, but are not limited to, theschool288.13 district that placed the teacher on unrequested leave of 288.14 absence, anotherschooldistrict in Minnesota, an education 288.15 district, an intermediate school district, a SC, a board formed 288.16 under section 471.59, a state residential academy, the Lola and 288.17 Rudy Perpich Minnesota center for arts education, a vocational 288.18 center, or a special education cooperative. These entities do 288.19 not include aschooldistrict in another state, a Minnesota 288.20 public post-secondary institution, or a state agency. Only 288.21 amounts earned by the teacher as a substitute teacher or in a 288.22 position requiring a valid Minnesota teaching license shall be 288.23 subtracted. A teacher may decline any offer of employment as a 288.24 teacher without loss of rights to severance pay. 288.25 To determine the amount of severance pay that is due for 288.26 the first six months following termination of the teacher's 288.27 salary, the district may require the teacher to provide 288.28 documented evidence of the teacher's employers and gross 288.29 earnings during that period. The districtshallmust pay the 288.30 teacher the amount of severance pay it determines to be due from 288.31 the proceeds of the levy for this purpose. To determine the 288.32 amount of severance pay that is due for the second six months of 288.33 the 12 months following the termination of the teacher's salary, 288.34 the district may require the teacher to provide documented 288.35 evidence of the teacher's employers and gross earnings during 288.36 that period. The districtshallmust pay the teacher the amount 289.1 of severance pay it determines to be due from the proceeds of 289.2 the levy for this purpose. 289.3 A teacher who receives severance pay under this subdivision 289.4 waives all further reinstatement rights under section 125.12, 289.5 subdivision 6a or 6b. If the teacher receives severance pay, 289.6 the teacher shall not receive credit for any years of service in 289.7 the district paying severance pay prior to the year in which the 289.8 teacher becomes eligible to receive severance pay. 289.9 The severance pay is subject to section 465.72. The 289.10 district may levy annually according to section 124.912, 289.11 subdivision 1, for the severance pay. 289.12 Sec. 70. Minnesota Statutes 1996, section 122.541, 289.13 subdivision 1, is amended to read: 289.14 Subdivision 1. [DISTRICT REQUIREMENTS.] Theschoolboards 289.15 of two or more districts may, after consultation with the 289.16 departmentof children, families, and learning, enter into an 289.17 agreement providing for: 289.18 (1) discontinuance by all districts except one of at least 289.19 the 10th, 11th, and 12th grades; and 289.20 (2) instruction of the pupils in the discontinued grades in 289.21 one of the cooperating districts. Each districtshallmust 289.22 continue to operate a school with at least three grades. Before 289.23 entering into a final agreement, the boardsshallmust provide a 289.24 copy of this agreement to the commissionerof children,289.25families, and learning. 289.26 Sec. 71. Minnesota Statutes 1996, section 122.541, 289.27 subdivision 2, is amended to read: 289.28 Subd. 2. [AID; TRANSPORTATION.] (a) Each districtshall289.29 must continue to count its resident pupils who are educated in a 289.30 cooperating district as resident pupils in the calculation of 289.31 pupil units for all purposes. The agreementshallmust provide 289.32 for tuition payments between or among the districts. 289.33 (b) Each districtshallmust continue to provide 289.34 transportation and collect transportation aid for its resident 289.35 pupils pursuant to sections 123.39, 124.223, and 124.225. A 289.36 district may provide some or all transportation to its resident 290.1 pupils by contracting with a cooperating district. For purposes 290.2 of section 124.225, the commissioner may adjust the base cost 290.3 per eligible pupil transported to reflect changes in costs 290.4 resulting from the agreement. 290.5 Sec. 72. Minnesota Statutes 1996, section 122.541, 290.6 subdivision 4, is amended to read: 290.7 Subd. 4. [NEGOTIATED PLAN FOR DISCONTINUED TEACHERS.] 290.8 Theschoolboard and exclusive bargaining representative of the 290.9 teachers in each district discontinuing grades may negotiate a 290.10 plan to assign or employ in a cooperating district or to place 290.11 on unrequested leave of absence all teachers whose positions are 290.12 discontinued as a result of the agreement. Theschoolboard and 290.13 exclusive bargaining representative of the teachers in each 290.14 district providing instruction to nonresident pupils may 290.15 negotiate a plan to employ teachers from a cooperating district 290.16 whose positions are discontinued as a result of the agreement. 290.17 If plans are negotiated and if the boards determine the plans 290.18 are compatible, the boards shall include the plans in their 290.19 agreement. 290.20 Sec. 73. Minnesota Statutes 1996, section 122.541, 290.21 subdivision 5, is amended to read: 290.22 Subd. 5. [COMBINED SENIORITY LIST.] If compatible plans 290.23 are not negotiated before the March 1 preceding any year of the 290.24 agreement, the cooperating districts shall be governed by this 290.25 subdivision. Insofar as possible, teachers who have acquired 290.26 continuing contract rights and whose positions are discontinued 290.27 as a result of the agreement shall be employed by a cooperating 290.28 district or assigned to teach in a cooperating district as 290.29 exchange teachers pursuant to section 125.13. If necessary, 290.30 teachers whose positions are discontinued as a result of the 290.31 agreement and who have acquired continuing contract rights shall 290.32 be placed on unrequested leave of absence in fields in which 290.33 they are licensed in the inverse order in which they were 290.34 employed by a cooperating district, according to a combined 290.35 seniority list of teachers in the cooperating districts. For 290.36 the purpose of establishing a combined seniority list, each 291.1schooldistrict must be considered to have started school each 291.2 year on the same date. 291.3 Sec. 74. Minnesota Statutes 1996, section 122.541, 291.4 subdivision 6, is amended to read: 291.5 Subd. 6. [NOTICE AND HEARING.] Prior to entering into an 291.6 agreement, theschoolboard shall consult with the community at 291.7 an informational meeting. The boardshallmust publish notice 291.8 of the meeting in the official newspaper of the district and may 291.9 send written notice of the meeting to parents of pupils who 291.10 would be affected. 291.11 Sec. 75. Minnesota Statutes 1996, section 122.541, 291.12 subdivision 7, is amended to read: 291.13 Subd. 7. [MEETING LOCATION.] Notwithstanding any law to 291.14 the contrary,schoolboards that have an agreement may hold a 291.15 valid joint meeting at any location that would be permissible 291.16 for one of theschoolboards participating in the meeting. A 291.17schoolboard that has an agreement may hold a meeting in any 291.18 district that is a party to the agreement. Theschoolboard 291.19 shall comply with section 471.705 and any other law applicable 291.20 to a meeting of aschoolboard. 291.21 Sec. 76. Minnesota Statutes 1996, section 122.895, is 291.22 amended to read: 291.23 122.895 [EMPLOYEES OF COOPERATIVE DISTRICTS UPON 291.24 DISSOLUTION OR WITHDRAWAL.] 291.25 Subdivision 1. [DEFINITIONS.] For the purposes of this 291.26 section, the terms defined in this subdivision have the meanings 291.27 given them. 291.28 (a) "Teacher" means a teacheras defined in section 125.12,291.29subdivision 1,who is employed by a district or center listed in 291.30 subdivision 2, except that it does not include a superintendent. 291.31 (b) "Cooperative" means any district or center to which 291.32 this section applies. 291.33 (c) "Withdrawal" means aschooldistrict's removal of its 291.34 students from a program of instruction, counseling, or 291.35 evaluation provided by a cooperative in order to provide the 291.36 same educational services by other means. 292.1 (d) "Education support position" means a position not 292.2 requiring a teaching license in which an employee assists a 292.3 teacher by providing instructional, counseling, or evaluative 292.4 support services directly to students. 292.5 (e) "Education support employee" means an employee holding 292.6 an education support position. 292.7 Subd. 2. [APPLICABILITY.] This section applies to: 292.8 (1) an education district organized according to sections 292.9 122.91 to 122.95; 292.10 (2) a cooperative vocational center organized according to 292.11 section 123.351; 292.12 (3) a joint powers district or board organized according to 292.13 section 471.59 which employs teachers to provide instruction; 292.14 (4) an intermediate district organized according to chapter 292.15 136D; 292.16 (5) a service cooperative which employs teachers to provide 292.17 instruction; and 292.18 (6)schooldistricts participating in an agreement for the 292.19 cooperative provision of special education services to children 292.20 with disabilities according to section 120.17, subdivision 4. 292.21 Subd. 2a. [AGREEMENTS FOR COOPERATIVE SPECIAL EDUCATION.] 292.22 (a) Upon the termination of an agreement according to section 292.23 120.17, subdivision 4, a teacher employed to provide special 292.24 education services by aschooldistrict participating in the 292.25 agreement will be afforded rights to employment by otherschool292.26 districts according to subdivisions 3, 4, and 5. Nonlicensed 292.27 employees of a participating district employed to provide 292.28 special education services will, upon the agreement's 292.29 termination, be afforded rights to employment by other 292.30 participating districts according to subdivision 8. 292.31 (b) Upon aschooldistrict's withdrawal from the 292.32 cooperative provision of special education under an agreement 292.33 according to section 120.17, subdivision 4, a teacher employed 292.34 to provide special education services by a participating 292.35 district will be afforded rights to employment by otherschool292.36 districts according to subdivisions 3, 6, and 7. Nonlicensed 293.1 employees of a participating district employed to provide 293.2 special education services will be afforded rights to employment 293.3 by the withdrawing district according to subdivision 9. 293.4 Subd. 3. [NOTIFICATION OF TEACHERS.] In any year in which 293.5 a cooperative dissolves or a member withdraws from a 293.6 cooperative, the governing board of a cooperativeshallmust 293.7 provide all teachers employed by the cooperative written 293.8 notification by March 10 of: 293.9 (1) the dissolution of the cooperative and the effective 293.10 date of dissolution; or 293.11 (2) the withdrawal of a member of the cooperative and the 293.12 effective date of withdrawal. 293.13 Subd. 4. [RIGHTS OF A TEACHER WITH A CONTINUING CONTRACT 293.14 IN A MEMBER DISTRICT UPON DISSOLUTION.] (a) This subdivision 293.15 applies to a teacher previously employed in a member district 293.16 who: 293.17 (1) had a continuing contract with that member district; 293.18 (2) has been continuously employed immediately after 293.19 leaving that member district by one or more cooperatives that 293.20 provided instruction to pupils enrolled in that member district; 293.21 and 293.22 (3) is either a probationary teacher or has a continuing 293.23 contract with the cooperative that is dissolving. 293.24 (b) A teacher may elect to resume the teacher's continuing 293.25 contract with the member district by which the teacher was 293.26 previously employed by filing a written notice of the election 293.27 with the memberschoolboard on or before March 20. Failure by 293.28 a teacher to file a written notice by March 20 of the year the 293.29 teacher receives a notice according to subdivision 3 constitutes 293.30 a waiver of the teacher's rights under this subdivision. 293.31 The member districtshallmust make reasonable realignments 293.32 of positions to accommodate the seniority rights of a teacher 293.33 electing to resume continuing contract rights in the member 293.34 district according to this subdivision. 293.35 Upon returning the teacher shall receive credit for: 293.36 (1) all years of continuous service under contract with the 294.1 cooperative and the member district for all purposes relating to 294.2 seniority, compensation, and employment benefits; and 294.3 (2) the teacher's current educational attainment on the 294.4 member district's salary schedule. 294.5 (c) A teacher who does not elect to return to the member 294.6 district according to this subdivision may exercise rights under 294.7 subdivision 5. 294.8 Subd. 5. [RIGHTS OF OTHER TEACHERS.] (a) This subdivision 294.9 applies to a teacher who: 294.10 (1) has a continuing contract with the cooperative; and 294.11 (2) either did not have a continuing contract with any 294.12 member district or does not return to a member district 294.13 according to the procedures set forth in subdivision 4, 294.14 paragraph (b). 294.15 (b) By May 10 of the school year in which the cooperative 294.16 provides the notice required by subdivision 3, clause (1), the 294.17 cooperativeshallmust provide to each teacher described in 294.18 subdivision 4 and this subdivision a written notice of available 294.19 teaching positions in any member district to which the 294.20 cooperative was providing services at the time of dissolution. 294.21 Available teaching positions are all teaching positions that, 294.22 during the school year following dissolution: 294.23 (1) are positions for which the teacher is licensed; and 294.24 (2) are not assigned to a continuing contract teacher 294.25 employed by a memberschooldistrict after any reasonable 294.26 realignments which may be necessary under the applicable 294.27 provisions of section 125.12, subdivision 6a or 6b, to 294.28 accommodate the seniority rights of teachers employed by the 294.29 member district. 294.30 (c) On or before June 1 of the school year in which the 294.31 cooperative provides the notice required by subdivision 3, 294.32 clause (1), any teacher wishing to do so must file with the 294.33schoolboard a written notice of the teacher's intention to 294.34 exercise the teacher's rights to an available teaching 294.35 position. Available teaching positionsshallmust be offered to 294.36 teachers in order of their seniority within the dissolved 295.1 cooperative. 295.2 (d) Paragraph (e) applies to: 295.3 (1) a district that was a member of a dissolved 295.4 cooperative; or 295.5 (2) any other district that, except as a result of open 295.6 enrollment according to section 120.062, provides essentially 295.7 the same instruction provided by the dissolved cooperative to 295.8 pupils enrolled in a former member district. 295.9 (e) For five years following dissolution of a cooperative, 295.10 a district to which this paragraph applies may not appoint a new 295.11 teacher or assign a probationary or provisionally licensed 295.12 teacher to any position requiring licensure in a field in which 295.13 the dissolved cooperative provided instruction until the 295.14 following conditions are met: 295.15 (1) a district to which this paragraph applies has provided 295.16 each teacher formerly employed by the dissolved cooperative, who 295.17 holds the requisite license, written notice of the position; and 295.18 (2) no teacher holding the requisite license has filed a 295.19 written request to be appointed to the position with theschool295.20 board within 30 days of receiving the notice. 295.21 If no teacher files a request according to clause (2), the 295.22 district may fill the position as it sees fit. During any part 295.23 of the school year in which dissolution occurs and the first 295.24 school year following dissolution, a teacher may file a request 295.25 for an appointment according to this paragraph regardless of 295.26 prior contractual commitments with other member districts. 295.27 Available teaching positionsshallmust be offered to teachers 295.28 in order of their seniority on a combined seniority list of the 295.29 teachers employed by the cooperative and the appointing district. 295.30 (f) A teacher appointed according to this subdivision is 295.31 not required to serve a probationary period. The teacher shall 295.32 receive credit on the appointing district's salary schedule for 295.33 the teacher's years of continuous service under contract with 295.34 the cooperative and the member district and the teacher's 295.35 educational attainment at the time of appointment or shall 295.36 receive a comparable salary, whichever is less. The teacher 296.1 shall receive credit for accumulations of sick leave and rights 296.2 to severance benefits as if the teacher had been employed by the 296.3 member district during the teacher's years of employment by the 296.4 cooperative. 296.5 Subd. 6. [RIGHTS OF A TEACHER WITH A CONTINUING CONTRACT 296.6 IN A MEMBER DISTRICT UPON WITHDRAWAL OF THE DISTRICT.] (a) This 296.7 subdivision applies to a teacher previously employed by a member 296.8 district who: 296.9 (1) had a continuing contract with the member district 296.10 which withdraws from a cooperative; 296.11 (2) has been continuously employed immediately after 296.12 leaving that member district by one or more cooperatives that 296.13 provided instruction to pupils enrolled in that member district; 296.14 and 296.15 (3) is either a probationary teacher or has a continuing 296.16 contract with the cooperative from which the member district is 296.17 withdrawing. 296.18 (b) A teacher may elect to resume the teacher's continuing 296.19 contract with the withdrawing district by which the teacher was 296.20 previously employed by filing a written notice of the election 296.21 with the withdrawing school board on or before March 20. 296.22 Failure by a teacher to file written notice by March 20 of the 296.23 year the teacher receives a notice according to subdivision 3 296.24 constitutes a waiver of a teacher's rights under this 296.25 subdivision. 296.26 The member districtshallmust make reasonable realignments 296.27 of positions to accommodate the seniority rights of a teacher 296.28 electing to resume continuing contract rights in the member 296.29 district according to this subdivision. 296.30 Upon returning, the teacher shall receive credit for: 296.31 (1) all years of continuous service under contract with the 296.32 cooperative and the member district for all purposes relating to 296.33 seniority, compensation, and employment benefits; and 296.34 (2) the teacher's current educational attainment on the 296.35 member district's salary schedule. 296.36 Subd. 7. [RIGHTS OF A TEACHER PLACED ON UNREQUESTED LEAVE 297.1 UPON WITHDRAWAL.] (a) This subdivision applies to a teacher who 297.2 is placed on unrequested leave of absence, according to section 297.3 125.12, subdivision 6a or 6b, in the year in which the 297.4 cooperative provides the notice required by subdivision 3, 297.5 clause (2), by a cooperative from which a member district is 297.6 withdrawing. 297.7 This subdivision applies to a district that, except as a 297.8 result of open enrollment according to section 120.062, provides 297.9 essentially the same instruction provided by the cooperative to 297.10 pupils enrolled in the withdrawing district. 297.11 (b) A teacher shall be appointed by a district to which 297.12 this subdivision applies to an available teaching position which: 297.13 (1) is in a field of licensure in which pupils enrolled in 297.14 the withdrawing district received instruction from the 297.15 cooperative; and 297.16 (2) is within the teacher's field of licensure. 297.17 For the purpose of this paragraph, an available teaching 297.18 position means any position that is vacant or would otherwise be 297.19 occupied by a probationary or provisionally licensed teacher. 297.20 (c) A board may not appoint a new teacher to an available 297.21 teaching position unless no teacher holding the requisite 297.22 license on unrequested leave from the cooperative has filed a 297.23 written request for appointment. The requestshallmust be 297.24 filed with the board of the appointing district within 30 days 297.25 of receiving written notice from the appointing board that it 297.26 has an available teaching position. If no teacher holding the 297.27 requisite license files a request according to this paragraph, 297.28 the district may fill the position as it sees fit. Available 297.29 teaching positionsshallmust be offered to teachers in order of 297.30 their seniority on a combined seniority list of the teachers 297.31 employed by the cooperative and the withdrawing member district. 297.32 (d) A teacher appointed according to this subdivision is 297.33 not required to serve a probationary period. The teacher shall 297.34 receive credit on the appointing district's salary schedule for 297.35 the teacher's years of continuous service under contract with 297.36 the cooperative and the member district and the teacher's 298.1 educational attainment at the time of appointment or shall 298.2 receive a comparable salary, whichever is less. The teacher 298.3 shall receive credit for accumulations of sick leave and rights 298.4 to severance benefits as if the teacher had been employed by the 298.5 member district during the teacher's years of employment by the 298.6 cooperative. 298.7 Subd. 8. [NONLICENSED EMPLOYEES UPON DISSOLUTION.] (a) A 298.8 nonlicensed employee who is terminated by a cooperative that 298.9 dissolves shall be appointed by a district that is a member of 298.10 the dissolved cooperative to a position that is created within 298.11 36 months of the dissolution of the cooperative and is created 298.12 as a result of the dissolution of the cooperative. A position 298.13shallmust be offered to a nonlicensed employee, who fulfills 298.14 the qualifications for that position, in order of the employee's 298.15 seniority within the dissolved cooperative. 298.16 (b) When an education support employee is terminated by a 298.17 cooperative that dissolves, a district that is a member of the 298.18 dissolved cooperativeshallmust appoint the employee to an 298.19 education support position if the position is created within 36 298.20 months of the dissolution of the cooperative as a result of the 298.21 dissolution. An education support positionshallmust be 298.22 offered to an education support employee, who fulfills the 298.23 qualifications for that position, in order of the employee's 298.24 seniority within the dissolved cooperative. 298.25 (c) An employee appointed according to this subdivision 298.26 shall receive credit for the employee's: 298.27 (1) continuous years of service with the cooperative on the 298.28 appointing district's compensation schedule and seniority list; 298.29 and 298.30 (2) unused sick leave accumulated while employed by the 298.31 cooperative. 298.32 (d) Notwithstanding section 179A.12 or Minnesota Rules, 298.33 part 5510.0510, subparts 1 to 4, a representation petition 298.34 seeking the exclusive representation of a unit of education 298.35 support employees employed by a district formerly a member of a 298.36 dissolved cooperative may be considered by the commissioner of 299.1 the bureau of mediation services at any time within 11 months of 299.2 the dissolution of the cooperative. 299.3 Subd. 9. [NONLICENSED EMPLOYEES UPON WITHDRAWAL.] (a) A 299.4 nonlicensed employee of a cooperative whose active employment is 299.5 discontinued or reduced as a result of the withdrawal of a 299.6 member district from the cooperative shall be appointed by the 299.7 withdrawing member district to a position that is created within 299.8 36 months of the withdrawal and is created as a result of the 299.9 withdrawal of the member district. A positionshallmust be 299.10 offered to a nonlicensed employee, who fulfills the 299.11 qualifications for that position, in order of the employee's 299.12 seniority within the cooperative from which a member district 299.13 withdraws. 299.14 (b) When an education support employee of a cooperative has 299.15 active employment discontinued or reduced as a result of the 299.16 withdrawal of a member district from the cooperative, the 299.17 withdrawing member districtshallmust appoint the employee to 299.18 an education support position if the position is created within 299.19 36 months of the withdrawal as a result of the withdrawal of the 299.20 member district. An education support positionshallmust be 299.21 offered to an education support employee, who meets the 299.22 qualifications for that position, in order of the employee's 299.23 seniority within the cooperative from which a member district 299.24 withdraws. 299.25 (c) An employee appointed according to this subdivision 299.26 shall receive credit for the employee's: 299.27 (1) continuous years of service with the cooperative on the 299.28 appointing district's compensation schedule and seniority list; 299.29 and 299.30 (2) unused sick leave accumulated while employed by the 299.31 cooperative. 299.32 (d) Notwithstanding section 179A.12 or Minnesota Rules, 299.33 part 5510.0510, subparts 1 to 4, a representation petition 299.34 seeking the exclusive representation of a unit of education 299.35 support employees employed by a member district which has 299.36 withdrawn from a cooperative may be considered by the 300.1 commissioner of the bureau of mediation services at any time 300.2 within 11 months of the district's withdrawal from the 300.3 cooperative. 300.4 Subd. 10. [COOPERATIVES THAT MERGE.] Notwithstanding 300.5 subdivisions 1 to 9, the following paragraphs apply to 300.6 cooperatives that merge. 300.7 (a) If a cooperative enters into an agreement to merge with 300.8 another cooperative, the boards of the cooperatives and the 300.9 exclusive representatives of the teachers in the cooperatives 300.10 and the teachers in each member district may negotiate a plan to 300.11 assign or employ in a member district or to place on unrequested 300.12 leave of absence all teachers whose positions are discontinued 300.13 as a result of the agreement. If plans are negotiated and if 300.14 the boards determine the plans are compatible, the boardsshall300.15 must include the plans in their agreement. 300.16 (b) If compatible plans are not negotiated under paragraph 300.17 (a) by the March 1 preceding the effective date of the merger of 300.18 the cooperatives, subdivisions 2 to 9 apply to teachers and 300.19 nonlicensed employees whose positions are terminated as a result 300.20 of an agreement to merge cooperatives. 300.21 Sec. 77. Minnesota Statutes 1996, section 122.91, 300.22 subdivision 2, is amended to read: 300.23 Subd. 2. [AGREEMENT.]SchoolBoards meeting the 300.24 requirements of subdivision 3 may enter into a written agreement 300.25 to establish an education district. Once established, cities, 300.26 counties, and other governmental units as defined in section 300.27 471.59, may become members of the education district. The 300.28 agreement and subsequent amendments must be adopted by majority 300.29 vote of the full membership of each board. 300.30 Sec. 78. Minnesota Statutes 1996, section 122.91, 300.31 subdivision 2a, is amended to read: 300.32 Subd. 2a. [AGREEMENT; SPECIAL PROVISIONS.] The education 300.33 district agreement may contain a special provision adopted by 300.34 the vote of a majority of the full membership of each of the 300.35 boards of the memberschooldistricts to allow a post-secondary 300.36 institution or cities, counties, and other governmental units to 301.1 become a member of the education district. 301.2 Sec. 79. Minnesota Statutes 1996, section 122.91, 301.3 subdivision 3a, is amended to read: 301.4 Subd. 3a. [MEETING WITH REPRESENTATIVES.] Before entering 301.5 into an agreement, theschoolboard of each member district must 301.6 meet and confer with the exclusive representatives of the 301.7 teachers of eachschooldistrict proposing to enter the 301.8 education district. 301.9 Sec. 80. Minnesota Statutes 1996, section 122.91, 301.10 subdivision 4, is amended to read: 301.11 Subd. 4. [NOTICE AND HEARING.] Before entering into an 301.12 agreement, theschoolboard of each member districtshallmust 301.13 publish a summary of the proposed agreement and its effect upon 301.14 the district at least once in a newspaper of general circulation 301.15 in the districta summary of the proposed agreement and its301.16effect upon the district. The boardshallmust conduct a public 301.17 hearing on the proposed agreement not more than ten days after 301.18 the notice and at least 30 days before entering into an 301.19 agreement. 301.20 Sec. 81. Minnesota Statutes 1996, section 122.91, 301.21 subdivision 6, is amended to read: 301.22 Subd. 6. [SERVICE COOPERATIVES.] If requested, service 301.23 cooperativesshallmust provide assistance to districts in 301.24 establishing education districts. The assistance may include 301.25 determination of appropriate boundaries of the education 301.26 district and development of the agreement. The service 301.27 cooperatives may provide any other services requested by the 301.28 education district. 301.29 Sec. 82. Minnesota Statutes 1996, section 122.93, 301.30 subdivision 3, is amended to read: 301.31 Subd. 3. [CONTRACTS.] The board may enter into contracts 301.32 withschooldistricts and other public and private agencies to 301.33 provide services needed in the education district. 301.34 Sec. 83. Minnesota Statutes 1996, section 122.93, 301.35 subdivision 8, is amended to read: 301.36 Subd. 8. [DISCONTINUING GRADES.] The board of aschool302.1 district that is a member of an education district may 302.2 discontinue any of kindergarten through grade 12 or part of 302.3 those grades and provide instruction for those grades or parts 302.4 of grades within the education district. 302.5 Sec. 84. Minnesota Statutes 1996, section 122.95, 302.6 subdivision 1, is amended to read: 302.7 Subdivision 1. [DEFINITION.] For the purposes of this 302.8 section, "teacher"has the meaning given it in section 125.12,302.9subdivision 1, except that itdoes not include a superintendent. 302.10 Sec. 85. Minnesota Statutes 1996, section 122.95, 302.11 subdivision 1a, is amended to read: 302.12 Subd. 1a. [FILLING POSITIONS; NEGOTIATED AGREEMENTS.] 302.13 Theschoolboards in all member districts and exclusive 302.14 bargaining representatives of the teachers in all member 302.15 districts may negotiate a plan for filling positions resulting 302.16 from implementation of the education district agreement. If the 302.17 plan is negotiated among the memberschooldistricts and the 302.18 exclusive bargaining representative of each memberschool302.19 district and unanimously agreed upon, in writing, the education 302.20 districtshallmust include the plan in the education district 302.21 agreement. If a plan is not negotiated, the education district 302.22 is governed by subdivision 2. 302.23 Sec. 86. Minnesota Statutes 1996, section 122.95, 302.24 subdivision 2, is amended to read: 302.25 Subd. 2. [FILLING POSITIONS.] (a) When an education 302.26 district board or a member board is filling a position resulting 302.27 from implementation of the agreement, the board may offer the 302.28 position to a teacher currently employed by a member district 302.29 according to the exchange teacher provisions of section 125.13. 302.30 (b) If the position is not filled by a currently employed 302.31 teacher, the boardshallmust offer the position to an available 302.32 teacher in the order of seniority in fields of licensure on a 302.33 combined seniority list of all available teachers in the member 302.34 districts. For the purpose of establishing a combined seniority 302.35 list, eachschooldistrict must be considered to have started 302.36 school each year on the same date. An available teacher is a 303.1 teacher in a member district who: 303.2 (1) was placed on unrequested leave of absence by a member 303.3 district, according to section 125.12, subdivision 6a or 6b, or 303.4 was terminated according to section 125.17, subdivision 11, not 303.5 more than one year before the initial formation of an education 303.6 district as a result of an intention to enter into an education 303.7 district agreement; 303.8 (2) was placed on unrequested leave of absence by a member 303.9 district, according to section 125.12, subdivision 6a or 6b, or 303.10 was terminated according to section 125.17, subdivision 11, as a 303.11 result of implementing the education district agreement, after 303.12 the formation of the education district; or 303.13 (3) is placed on unrequested leave of absence by a member 303.14 district, according to section 125.12, subdivision 6a or 6b, or 303.15 is terminated according to section 125.17, subdivision 11, as a 303.16 result of implementing the education district, in the same year 303.17 the position is filled. 303.18 (c) If no currently employed teacher or available teacher 303.19 accepts the position, the board may fill the position with any 303.20 other teacher. 303.21 (d) Any teacher who has been placed on unrequested leave of 303.22 absence or who has been terminated has a right to a position 303.23 only as long as the teacher has a right to reinstatement in a 303.24 member district under section 125.12, subdivision 6a or 6b, or 303.25 125.17, subdivision 11. 303.26 Sec. 87. Minnesota Statutes 1996, section 122.95, 303.27 subdivision 4, is amended to read: 303.28 Subd. 4. [DETERMINATION OF REASON FOR LEAVE.] When a 303.29 school board that intends to enter into an education district 303.30 agreement, and at the time aschoolboard that has entered into 303.31 an education district agreement places a teacher on unrequested 303.32 leave of absence, according to section 125.12, subdivision 6a or 303.33 6b, or terminates a teacher's services under section 125.17, 303.34 subdivision 11, the boardshallmust make a determination 303.35 whether the placement or termination is a result of implementing 303.36 the education district agreement. That determinationshallmust 304.1 be included in the notice of proposed placement or termination, 304.2 may be reviewed at a hearing upon request of the teacher, 304.3 andshallmust be included in the notice of final action of the 304.4 board. If the determination is not disputed by the teacher 304.5 before June 1 or the final date required for action by the 304.6 board, the teacher shall be deemed to acquiesce in the board's 304.7 determination. 304.8 Sec. 88. Minnesota Statutes 1996, section 123.35, 304.9 subdivision 19a, is amended to read: 304.10 Subd. 19a. [LIMITATION ON PARTICIPATION AND FINANCIAL 304.11 SUPPORT.] (a)No schoolA districtshallmust not be required by 304.12 any type of formal or informal agreement except an agreement to 304.13 provide building space according to paragraph (f), including a 304.14 joint powers agreement, or membership in any cooperative unit 304.15 defined in subdivision 19b, paragraph (d), to participate in or 304.16 provide financial support for the purposes of the agreement for 304.17 a time period in excess of one fiscal year, or the time period 304.18 set forth in this subdivision. Any agreement, part of an 304.19 agreement, or other type of requirement to the contrary is void. 304.20 (b) This subdivision shall not affect the continued 304.21 liability of aschooldistrict for its share of bonded 304.22 indebtedness or other debt incurred as a result of any agreement 304.23 before July 1, 1993. Theschooldistrict is liable only until 304.24 the obligation or debt is discharged and only according to the 304.25 payment schedule in effect on July 1, 1993, except that the 304.26 payment schedule may be altered for the purpose of restructuring 304.27 debt or refunding bonds outstanding on July 1, 1993, if the 304.28 annual payments of theschooldistrict are not increased and if 304.29 the total obligation of the school district for its share of 304.30 outstanding bonds or other debt is not increased. 304.31 (c) To cease participating in or providing financial 304.32 support for any of the services or activities relating to the 304.33 agreement or to terminate participation in the agreement, the 304.34schoolboardshallmust adopt a resolution and notify other 304.35 parties to the agreement of its decision on or before February 1 304.36 of any year. The cessation or withdrawal shall be effective 305.1 June 30 of the same year except that for a member of an 305.2 education district organized under sections 122.91 to 122.95 or 305.3 an intermediate district organized under chapter 136D, cessation 305.4 or withdrawal shall be effective June 30 of the following fiscal 305.5 year. At the option of theschoolboard, cessation or 305.6 withdrawal may be effective June 30 of the following fiscal year 305.7 for a district participating in any type of agreement. 305.8 (d) Before issuing bonds or incurring other debt, the 305.9 governing body responsible for implementing the agreementshall305.10 must adopt a resolution proposing to issue bonds or incur other 305.11 debt and the proposed financial effect of the bonds or other 305.12 debt upon each participating district. The resolutionshall305.13 must be adopted within a time sufficient to allow theschool305.14 board to adopt a resolution within the time permitted by this 305.15 paragraph and to comply with the statutory deadlines set forth 305.16 in sections 122.895, 125.12, and 125.17. The governing body 305.17 responsible for implementing the agreement shall notify each 305.18 participatingschoolboard of the contents of the resolution. 305.19 Within 120 days of receiving the resolution of the governing 305.20 body, the school board of the participating district shall adopt 305.21 a resolution stating: 305.22 (1) its concurrence with issuing bonds or incurring other 305.23 debt; 305.24 (2) its intention to cease participating in or providing 305.25 financial support for the service or activity related to the 305.26 bonds or other debt; or 305.27 (3) its intention to terminate participation in the 305.28 agreement. 305.29 Aschoolboard adopting a resolution according to clause 305.30 (1) is liable for its share of bonded indebtedness or other debt 305.31 as proposed by the governing body implementing the agreement. A 305.32 school board adopting a resolution according to clause (2) is 305.33 not liable for the bonded indebtedness or other debt, as 305.34 proposed by the governing body, related to the services or 305.35 activities in which the district ceases participating or 305.36 providing financial support. Aschoolboard adopting a 306.1 resolution according to clause (3) is not liable for the bonded 306.2 indebtedness or other debt proposed by the governing body 306.3 implementing the agreement. 306.4 (e) After July 1, 1993, a district is liable according to 306.5 paragraph (d) for its share of bonded indebtedness or other debt 306.6 incurred by the governing body implementing the agreement to the 306.7 extent that the bonds or other debt are directly related to the 306.8 services or activities in which the district participates or for 306.9 which the district provides financial support. The district has 306.10 continued liability only until the obligation or debt is 306.11 discharged and only according to the payment schedule in effect 306.12 at the time the governing body implementing the agreement 306.13 provides notice to the school board, except that the payment 306.14 schedule may be altered for the purpose of refunding the 306.15 outstanding bonds or restructuring other debt if the annual 306.16 payments of the district are not increased and if the total 306.17 obligation of the district for the outstanding bonds or other 306.18 debt is not increased. 306.19 (f) Aschooldistrict that is a member of a cooperative 306.20 unit as defined in subdivision 19b, paragraph (d), may obligate 306.21 itself to participate in and provide financial support for an 306.22 agreement with a cooperative unit to provide school building 306.23 space for a term not to exceed two years with an option on the 306.24 part of the district to renew for an additional two years. 306.25 Sec. 89. Minnesota Statutes 1996, section 123.35, 306.26 subdivision 19b, is amended to read: 306.27 Subd. 19b. [WITHDRAWING FROM COOPERATIVE.] If aschool306.28 district withdraws from a cooperative unit defined in paragraph 306.29 (d), the distribution of assets and assignment of liabilities to 306.30 the withdrawing district shall be determined according to this 306.31 subdivision. 306.32 (a) The withdrawing district remains responsible for its 306.33 share of debt incurred by the cooperative unit according to 306.34 subdivision 19a. Theschooldistrict and cooperative unit may 306.35 mutually agree, through a board resolution by each, to terms and 306.36 conditions of the distribution of assets and the assignment of 307.1 liabilities. 307.2 (b) If the cooperative unit and theschooldistrict cannot 307.3 agree on the terms and conditions, the commissionerof children,307.4families, and learningshall resolve the dispute by determining 307.5 the district's proportionate share of assets and liabilities 307.6 based on the district's enrollment, financial contribution, 307.7 usage, or other factor or combination of factors determined 307.8 appropriate by the commissioner. The assetsshallmust be 307.9 disbursed to the withdrawing district in a manner that minimizes 307.10 financial disruption to the cooperative unit. 307.11 (c) Assets related to an insurance pool shall not be 307.12 disbursed to a member district under paragraph (b). 307.13 (d) For the purposes of this section, a cooperative unit is: 307.14 (1) an education district organized under sections 122.91 307.15 to 122.95; 307.16 (2) a cooperative vocational center organized under section 307.17 123.351; 307.18 (3) an intermediate district organized under chapter 136D; 307.19 (4) a service cooperative organized under section 123.582; 307.20 or 307.21 (5) a regional management information center organized 307.22 under section 121.935 or as a joint powers district according to 307.23 section 471.59. 307.24 Sec. 90. Minnesota Statutes 1996, section 123.35, 307.25 subdivision 21, is amended to read: 307.26 Subd. 21. [APPEAL TO COMMISSIONER.] If a cooperative unit 307.27 as defined in subdivision 19b, paragraph (d), denies membership 307.28 in the unit to aschooldistrict, theschooldistrict may appeal 307.29 to the commissionerof children, families, and learning. The 307.30 commissioner may require the cooperative unit to grant the 307.31 district membership. 307.32 Sec. 91. Minnesota Statutes 1996, section 123.351, 307.33 subdivision 1, is amended to read: 307.34 Subdivision 1. [ESTABLISHMENT.] Two or more independent 307.35 school districts may enter into an agreement to establish a 307.36 cooperative center to provide for vocational education and other 308.1 educational services upon the vote of a majority of the full 308.2 membership of each of the boards of the districts entering into 308.3 the agreement. The agreement may also provide for membership by 308.4 cities, counties, and other governmental units as defined in 308.5 section 471.59. When a resolution approving this action has 308.6 been adopted by the board of a district, the resolution shall be 308.7 published once in a newspaper of general circulation in the 308.8 district. If a petition for referendum on the question of the 308.9 district entering into the agreement, containing signatures of 308.10 qualified voters of the district equal to five percent of the 308.11 number of voters at the last school district general election, 308.12 is filed with the clerk of the board within 60 days after 308.13 publication of the resolution, the boardshallmust not enter 308.14 into the agreement until the question has been submitted to the 308.15 voters of the district at a special election. This election 308.16shallmust be conducted and canvassed in the same manner as 308.17 school district general elections. If a majority of the total 308.18 number of votes cast on the question within the district is in 308.19 favor of the proposition, the board may enter into an agreement 308.20 to establish the center for purposes described in this section. 308.21 Sec. 92. Minnesota Statutes 1996, section 123.351, 308.22 subdivision 3, is amended to read: 308.23 Subd. 3. [GOVERNING BOARD.] (a) The centershallmust be 308.24 operated by a center board of not less than five members which 308.25 shall consist of members fromschoolboards of each of the 308.26 participatingschooldistricts within the center and member 308.27 cities, counties, and other governmental units, appointed by 308.28 their respective boards. Each participatingschooldistrict 308.29shallmust have at least one member on the board. The board 308.30shallmust choose an administrative officer to administer board 308.31 policy and directives who shall serve as an ex officio member of 308.32 the board but shall not have a vote. 308.33 (b) The terms of office of the first members of the center 308.34 boardshallmust be determined by lot as follows: one-third of 308.35 the members for one year, one-third for two years, and the 308.36 remainder for three years, all terms to expire on June 30 of the 309.1 appropriate year; provided that if the number of members is not 309.2 evenly divisible by three, the membership will be as evenly 309.3 distributed as possible among one, two and three year terms with 309.4 the remaining members serving the three year term. Thereafter 309.5 the terms shall be for three years commencing on July 1 of each 309.6 year. If a vacancy occurs on the center board, itshallmust be 309.7 filled by the appropriate school board within 90 days. A person 309.8 appointed to the center board shall qualify as a board member by 309.9 filing with the chair a written certificate of appointment from 309.10 the appointing school board. 309.11 (c) The first meeting of a center boardshallmust be at a 309.12 time mutually agreed upon by board members. At this meeting, 309.13 the center boardshallmust choose its officers and conduct any 309.14 other necessary organizational business. Thereafter the center 309.15 boardshallmust meet onthe first ofJuly 1 of each year or as 309.16 soon thereafter as practicable pursuant to notice sent to all 309.17 center board members by the chief executive officer of the 309.18 center. 309.19 (d) The officers of the center board shall be a chair, 309.20 vice-chair, clerk and treasurer, no two of whom when possible 309.21 shall be from the same school district. The chair shall preside 309.22 at all meetings of the center board except in the chair's 309.23 absence the vice-chair shall preside. The clerk shall keep a 309.24 complete record of the minutes of each meeting and the treasurer 309.25 shall be the custodian of the funds of the center. Insofar as 309.26 applicable, sections 123.33 and 123.34, shall apply to the board 309.27 and officers of the center. 309.28 (e) Each participatingschooldistrictshallmust have 309.29 equal voting power with at least one vote. A majority of the 309.30 center board shall be a quorum. Any motion other than 309.31 adjournment shall pass only upon receiving a majority of the 309.32 votes of the entire center board. 309.33 Sec. 93. Minnesota Statutes 1996, section 123.351, 309.34 subdivision 4, is amended to read: 309.35 Subd. 4. [POWERS AND DUTIES.] (a) The center board shall 309.36 have the general charge of the business of the center and the 310.1 ownership of facilities. Where applicable, section 123.36, 310.2 shall apply. The center board may not issue bonds in its 310.3 behalf. Each participating district may issue its bonds for the 310.4 purpose of acquisition and betterment of center facilities in 310.5 the amount certified by the center board to such participating 310.6 district in accordance with chapter 475. 310.7 (b) The center board (1) may furnish vocational offerings 310.8 to any eligible person residing in any participating district; 310.9 (2) may provide special education for the handicapped and 310.10 disadvantaged; and (3) may provide any other educational 310.11 programs or services defined in section 123.582, subdivisions 7 310.12 and 8, agreed upon by the participating members. Academic 310.13 offerings shall be provided only under the direction of properly 310.14 licensed academic supervisory personnel. 310.15 (c) In accordance with subdivision 5, clause (b), the 310.16 center board shall certify to each participating district the 310.17 amount of funds assessed to the district as its proportionate 310.18 share required for the conduct of the educational programs, 310.19 payment of indebtedness, and all other proper expenses of the 310.20 center. 310.21 (d) The center boardshallmust employ and contract with 310.22 necessary qualified teachers and administrators and may 310.23 discharge the same for cause pursuant to section 125.12. The 310.24 authority for selection and employment of a director shall be 310.25 vested in the center board. Notwithstanding the provisions of 310.26 section 125.12, subdivision 6a or 6b, no individual shall have a 310.27 right to employment as a director based on seniority or order of 310.28 employment by the center. The board may employ and discharge 310.29 other necessary employees and may contract for other services 310.30 deemed necessary. 310.31 (e) The center board may provide an educational program for 310.32 secondary and adult vocational phases of instruction. The high 310.33 school phase of its educational programshallmust be offered as 310.34 a component of the comprehensive curriculum offered by each of 310.35 the participating school districts. Graduationshallmust be 310.36 from the student's resident high school district. Insofar as 311.1 applicable, sections 123.35 to 123.40, shall apply. 311.2 (f) The center board may prescribe rates of tuition for 311.3 attendance in its programs by adults and nonmember district 311.4 secondary students. 311.5 Sec. 94. Minnesota Statutes 1996, section 123.351, 311.6 subdivision 5, is amended to read: 311.7 Subd. 5. [FINANCING.] (a) Any center board established 311.8 pursuant to this section is a public corporation and agency and 311.9 may receive and disburse federal, state, and local funds made 311.10 available to it.NoA participating school district or member 311.11shallmust not have any additional individual liability for the 311.12 debts or obligations of the center except that assessment which 311.13 has been certified as its proportionate share in accordance with 311.14 subdivision 5, clause (b) and subdivision 4, clauses (a) and 311.15 (c). A member of the center board shall have such liability as 311.16 is applicable to a member of an independent school district 311.17 board. Any property, real or personal, acquired or owned by the 311.18 center board for its purposes shall be exempt from taxation by 311.19 the state or any of its political subdivisions. 311.20 (b) The center board may, in each year, for the purpose of 311.21 paying any administrative, planning, operating, or capital 311.22 expenses incurred or to be incurred, assess and certify to each 311.23 participating school district its proportionate share of any and 311.24 all expenses. This shareshallmust be based upon an equitable 311.25 distribution formula agreed upon by the participating 311.26 districts. Each participating district shall remit its 311.27 assessment to the center board within 30 days after receipt. 311.28 The assessments shall be paid within the maximum levy 311.29 limitations of each participating district. 311.30 Sec. 95. Minnesota Statutes 1996, section 123.351, 311.31 subdivision 8, is amended to read: 311.32 Subd. 8. [ADDITION AND WITHDRAWAL OF DISTRICTS.] Upon 311.33 approval by majority vote of aschoolboard and of the center 311.34 board, an adjoiningschooldistrict may become a member in the 311.35 center and be governed by the provisions of this section and the 311.36 agreement in effect. 312.1 Any participating district may withdraw from the center and 312.2 from the agreement in effect by a majority vote of the full 312.3 board membership of the participatingschooldistrict desiring 312.4 withdrawal and upon compliance with provisions in the agreement 312.5 establishing the center. Upon receipt of the withdrawal 312.6 resolution reciting the necessary facts, the center boardshall312.7 must file a certified copy with the county auditors of the 312.8 counties affected. The withdrawal shall become effective at the 312.9 end of the next following school year but the withdrawal shall 312.10 not affect the continued liability of the withdrawing district 312.11 for bonded indebtedness it incurred prior to the effective 312.12 withdrawal date. 312.13 Sec. 96. Minnesota Statutes 1996, section 123.351, 312.14 subdivision 8a, is amended to read: 312.15 Subd. 8a. [DISSOLUTION.] The boards of each participating 312.16 district may agree to dissolve a center effective at the end of 312.17 any school year or at an earlier time as they may mutually 312.18 agree. A dissolutionshallmust be accomplished in accordance 312.19 with any applicable provisions of the agreement establishing the 312.20 center. Upon receipt of the dissolution resolutions from the 312.21 boards of the participating districts, the center board shall 312.22 file a certified copy with the county auditors of the counties 312.23 affected. The dissolutionshallmust not affect the continuing 312.24 liability of the previously participating districts for bonded 312.25 indebtedness incurred prior to the dissolution, or for other 312.26 continuing obligations, including reemployment insurance. 312.27 Sec. 97. Minnesota Statutes 1996, section 123.582, 312.28 subdivision 2, is amended to read: 312.29 Subd. 2. [PURPOSE OF SC.] The primary purposes of 312.30 designation as a SC shall be to perform planning on a regional 312.31 basis and to assist in meeting specific needs of clients in 312.32 participating governmental units which could be better provided 312.33 by a SC than by the members themselves. The SCshallmust 312.34 provide those programs and services which are determined, 312.35 pursuant to subdivision 7, to be priority needs of the 312.36 particular region andshallmust assist in meeting special needs 313.1 which arise from fundamental constraints upon individual members. 313.2 Sec. 98. Minnesota Statutes 1996, section 124.511, is 313.3 amended to read: 313.4 124.511 [SURPLUS COUNTY SCHOOL TAX FUNDS; DISTRIBUTION.] 313.5 When, by reason of reorganization of districts, there is a 313.6 surplus in the county treasury to the credit of the county 313.7 school tax fund on account of an excessive tax levy 313.8heretoforealready made, and when there is no needtherefor,for 313.9 the surplus,shall be paid bythe county treasurer shall pay the 313.10 surplus to the reorganized district upon the order of the county 313.11 board. 313.12 Sec. 99. Minnesota Statutes 1996, section 124C.45, 313.13 subdivision 1, is amended to read: 313.14 Subdivision 1. [GOVERNANCE.] Aschooldistrict may 313.15 establish an area learning center either by itself or in 313.16 cooperation with other districts, a SC, an intermediate school 313.17 district, a local education and employment transitions 313.18 partnership, public and private secondary and post-secondary 313.19 institutions, public agencies, businesses, and foundations. 313.20 Except for a district located in a city of the first class, a 313.21 center must serve the geographic area of at least two districts. 313.22 Sec. 100. Minnesota Statutes 1997 Supplement, section 313.23 124C.45, subdivision 1a, is amended to read: 313.24 Subd. 1a. [RESERVE REVENUE.] Eachschooldistrict that is 313.25 a member of an area learning center must reserve revenue in an 313.26 amount equal to at least 90 percent of the district average 313.27 general education revenue less compensatory revenue unit times 313.28 the number of pupil units attending an area learning center 313.29 program under this section. The amount of reserved revenue 313.30 under this subdivision may only be spent on program costs 313.31 associated with the area learning center. Compensatory revenue 313.32 must be allocated according to section 124A.28, subdivision 1a. 313.33 Sec. 101. Minnesota Statutes 1996, section 124C.49, is 313.34 amended to read: 313.35 124C.49 [DESIGNATION AS CENTER.] 313.36 The commissionerof children, families, and learning, in 314.1 cooperation with the state board of education, shall establish a 314.2 process for state designation and approval of area learning 314.3 centers that meet the provisions of sections 124C.45 to 314.4 124C.48. Any process for designating and approving an area 314.5 learning center must emphasize the importance of having the area 314.6 learning center serve students who have dropped out of school, 314.7 are homeless, are eligible to receive free or reduced priced 314.8 lunch, have been suspended or expelled, have been declared 314.9 truant or are pregnant or parents. 314.10 Sec. 102. [REPEALER.] 314.11 Minnesota Statutes 1996, sections 122.532, subdivision 1; 314.12 and 122.541, subdivision 3, are repealed. 314.13 Sec. 103. [INSTRUCTION TO REVISOR.] 314.14 The revisor of statutes shall renumber each section of 314.15 Minnesota Statutes listed in column A with the number listed in 314.16 column B. The revisor shall also make necessary cross-reference 314.17 changes consistent with the renumbering. 314.18 Column A Column B 314.19 122.01 122A.01 314.20 122.02 122A.02 314.21 122.03 122A.03 314.22 122.21 122A.05 314.23 122.22, subd. 1 122A.06, subd. 1 314.24 subd. 2 subd. 2 314.25 subd. 3 subd. 3 314.26 subd. 4 subd. 4 314.27 subd. 5 subd. 5 314.28 subd. 6 subd. 6 314.29 subd. 7 subd. 7 314.30 subd. 7a subd. 8 314.31 subd. 8 subd. 9 314.32 subd. 9 subd. 10 314.33 subd. 11 subd. 11 314.34 subd. 13 subd. 12 314.35 subd. 14 subd. 13 314.36 subd. 18 subd. 14 315.1 subd. 20 subd. 15 315.2 subd. 21 subd. 16 315.3 122.23, subd. 1 122A.10, subd. 1 315.4 subd. 2 subd. 2 315.5 subd. 2a subd. 3 315.6 subd. 2b subd. 4 315.7 subd. 3 subd. 5 315.8 subd. 4 subd. 6 315.9 subd. 5 subd. 7 315.10 subd. 6 subd. 8 315.11 subd. 7 subd. 9 315.12 subd. 8 subd. 10 315.13 subd. 9 subd. 11 315.14 subd. 10 subd. 12 315.15 subd. 11 subd. 13 315.16 subd. 12 subd. 14 315.17 subd. 13 subd. 15 315.18 subd. 14 subd. 16 315.19 subd. 15 subd. 17 315.20 subd. 16 subd. 18 315.21 subd. 16c subd. 19 315.22 subd. 18 subd. 20 315.23 subd. 18a subd. 21 315.24 subd. 19 subd. 22 315.25 subd. 20 subd. 23 315.26 127.25 122A.11 315.27 122.535 122A.12 315.28 122.541, subd. 1 122A.14, subd. 1 315.29 subd. 2 subd. 2 315.30 subd. 4 subd. 3 315.31 subd. 5 subd. 4 315.32 subd. 6 subd. 5 315.33 subd. 7 subd. 6 315.34 122.895, subd. 1 122A.15, subd. 1 315.35 subd. 2 subd. 2 315.36 subd. 2a subd. 3 316.1 subd. 3 subd. 4 316.2 subd. 4 subd. 5 316.3 subd. 5 subd. 6 316.4 subd. 6 subd. 7 316.5 subd. 7 subd. 8 316.6 subd. 8 subd. 9 316.7 subd. 9 subd. 10 316.8 subd. 10 subd. 11 316.9 122.241 122A.17 316.10 122.242 122A.18 316.11 122.243 122A.19 316.12 122.244 122A.20 316.13 122.245 122A.21 316.14 122.246 122A.22 316.15 122.247, subd. 1 122.23, subd. 1 316.16 subd. 2 subd. 2 316.17 subd. 2a subd. 3 316.18 subd. 3 subd. 4 316.19 122.248 122A.24 316.20 122.25 122A.26 316.21 122.32 122A.30 316.22 122.34 122A.31 316.23 122.355 122A.32 316.24 122.41 122A.34 316.25 122.43 122A.35 316.26 122.44 122A.36 316.27 122.45, subd. 1 122A.37, subd. 1 316.28 subd. 2 subd. 2 316.29 subd. 3a subd. 3 316.30 122.46 122A.38 316.31 122.47 122A.39 316.32 122.48 122A.40 316.33 122.51 122A.41 316.34 122.531, subd. 1 122A.43, subd. 1 316.35 subd. 1a subd. 2 316.36 subd. 2 subd. 3 317.1 subd. 2a subd. 4 317.2 subd. 2b subd. 5 317.3 subd. 2c subd. 6 317.4 subd. 2d subd. 7 317.5 subd. 4 subd. 8 317.6 subd. 4a subd. 9 317.7 subd. 5a subd. 10 317.8 subd. 6 subd. 11 317.9 subd. 9 subd. 12 317.10 122.5311 122A.44 317.11 122.532, subd. 2 122A.45, subd. 1 317.12 subd. 3 subd. 2 317.13 subd. 3a subd. 3 317.14 subd. 4 subd. 4 317.15 122.533 122A.46 317.16 124.511 122A.47 317.17 121.155 122A.48 317.18 122.539 122A.49 317.19 122.91, subd. 1 122A.50, subd. 1 317.20 subd. 2 subd. 2 317.21 subd. 2a subd. 3 317.22 subd. 3 subd. 4 317.23 subd. 3a subd. 5 317.24 subd. 4 subd. 6 317.25 subd. 6 subd. 7 317.26 122.92 122A.51 317.27 122.93, subd. 1 122A.52, subd. 1 317.28 subd. 2 subd. 2 317.29 subd. 3 subd. 3 317.30 subd. 4 subd. 4 317.31 subd. 5 subd. 5 317.32 subd. 6 subd. 6 317.33 subd. 8 subd. 7 317.34 122.94, subd. 1 122A.53, subd. 1 317.35 subd. 4 subd. 2 317.36 subd. 5 subd. 3 318.1 122.95, subd. 1 122A.54, subd. 1 318.2 subd. 1a subd. 2 318.3 subd. 2 subd. 3 318.4 subd. 3 subd. 4 318.5 subd. 4 subd. 5 318.6 123.582 122A.56 318.7 123.351, subd. 1 122A.57, subd. 1 318.8 subd. 2 subd. 2 318.9 subd. 3 subd. 3 318.10 subd. 4 subd. 4 318.11 subd. 5 subd. 5 318.12 subd. 6 subd. 6 318.13 subd. 7 subd. 7 318.14 subd. 8 subd. 8 318.15 subd. 8a subd. 9 318.16 subd. 9 subd. 10 318.17 subd. 10 subd. 11 318.18 123.35, subd. 19a 122A.58, subd. 1 318.19 subd. 19b subd. 2 318.20 subd. 21 subd. 3 318.21 122.98 122A.59 318.22 124.193 122A.60 318.23 124C.45, subd. 1 122A.65, subd. 1 318.24 subd. 1a subd. 2 318.25 subd. 2 subd. 3 318.26 subd. 3 subd. 4 318.27 124C.46 122A.66 318.28 124C.47 122A.67 318.29 124C.48 122A.68 318.30 124C.49 122A.69 318.31 ARTICLE 6 318.32 CHAPTER 123A 318.33 POWERS AND DUTIES OF SCHOOL DISTRICTS 318.34 Section 1. Minnesota Statutes 1996, section 120.59, is 318.35 amended to read: 318.36 120.59 [PURPOSE OF FLEXIBLE LEARNING YEAR PROGRAMS.] 319.1The purpose ofSections 120.59 to 120.67is toauthorize 319.2 districts to evaluate, plan and employ the use of flexible 319.3 learning year programs. It is anticipated that the open 319.4 selection of the type of flexible learning year operation from a 319.5 variety of alternatives will allow each districtwhich seeks319.6 seeking to utilize this concept to suitably fulfill the 319.7 educational needs of its pupils. These alternativesshallmust 319.8 include, but not be limited to, various 45-15 plans, 319.9 four-quarter plans, quinmester plans, extended learning year 319.10 plans, flexible all-year plans, and four-day week plans. 319.11 Sec. 2. Minnesota Statutes 1996, section 120.60, is 319.12 amended to read: 319.13 120.60 [DEFINITION OF FLEXIBLE LEARNING YEAR.] 319.14 "Flexible learning year program" means any district plan 319.15 approved by the state boardof education whichthat utilizes 319.16 buildings and facilities during the entire yearand/or whichor 319.17 that provides forms of optional scheduling of pupils and 319.18 personnel during the learning year in elementary and secondary 319.19 schools or residential facilities for children with a disability. 319.20 Sec. 3. Minnesota Statutes 1996, section 120.61, is 319.21 amended to read: 319.22 120.61 [ESTABLISHMENT OF FLEXIBLE LEARNING YEAR PROGRAM.] 319.23 The board of any district, with the approval of the state 319.24 boardof education, may establish and operate a flexible 319.25 learning year program in one or more of the day or residential 319.26 facilities for children with a disability within the district. 319.27 Sec. 4. Minnesota Statutes 1996, section 120.62, is 319.28 amended to read: 319.29 120.62 [DIVISION OF CHILDREN INTO GROUPS.] 319.30 The board of any district operating a flexible learning 319.31 year program in one or more of the facilities within the 319.32 districtshallmust divide the students of each selected 319.33 facility into as many groups as necessary to accommodate this 319.34 program. Students of the same familyshallmust be placed in 319.35 the same group unless one or more of these students is enrolled 319.36 in a special education class or unless the parent or guardian of 320.1 these students requests that the students be placed in different 320.2 groups. No boardshallmay discriminate on the basis of race, 320.3 color, creed, religion, marital status, status with regard to 320.4 public assistance, sex, or national origin when assigning pupils 320.5 to attendance groups pursuant to this section. 320.6 Sec. 5. Minnesota Statutes 1996, section 120.63, is 320.7 amended to read: 320.8 120.63 [PUBLIC HEARING BEFORE IMPLEMENTATION.] 320.9Prior toBefore implementing a flexible learning year 320.10 program in any facility of the district, the boardshallmust 320.11 negotiate with the teachers, principals, assistant principals, 320.12 supervisory personnel and employees to the extent required by 320.13 the public employment labor relations act, andshallmust 320.14 consult with the parents of pupils who would be affected by the 320.15 change, and with the community at large. These proceduresshall320.16 must include at least three informational meetings for which the 320.17 board has given published notice to the teachers and employees 320.18 and to the parents of pupils affected. 320.19 Sec. 6. Minnesota Statutes 1996, section 120.64, is 320.20 amended to read: 320.21 120.64 [ASSIGNMENT OF TEACHERS.] 320.22 Subdivision 1. [IMPLEMENTING PROGRAM.] In districts where 320.23 a flexible learning year program is implemented in fewer than 320.24 all of the facilities maintained by the district, the board of 320.25 the districtshallmust make every reasonable effort to assign 320.26 qualified teachers who prefer a traditional schedule to 320.27 facilities of the same level retaining a traditional schedule. 320.28 Subd. 2. [TEACHER SCHEDULE.] A full-time teacher currently 320.29 employed by a districtwhichthat converts to a flexible 320.30 learning year programshallmay not, without the teacher's 320.31 written consent, be required to teach under this program (1) 320.32 more or less than the number of scheduled days or their 320.33 equivalent the facilities of the district were maintained during 320.34 the year preceding implementation of the flexible learning year 320.35 program; (2) in a period of the calendar year substantially 320.36 different from the period in which the teacher taught during the 321.1 year preceding implementation of the flexible learning year 321.2 program. 321.3 Subd. 3. [CONTRACT RIGHTS; PROGRAM ADOPTION.] In no event 321.4shallmay a teacher's continuing contract rights to a position 321.5 held the year preceding implementation of a flexible learning 321.6 year program or teaching experience earned during a probationary 321.7 period the year preceding implementation be lost or impaired 321.8 upon adoption of a flexible learning year program. If the year 321.9 of teaching preceding implementation was the end of a 321.10 probationary period, the continuing contract right to a full 321.11 year's contract which normally would be acquired for the next 321.12 succeeding learning yearshallmust be acquired in the year of 321.13 adoption of the flexible program. 321.14 Subd. 4. [CONTRACT FOR LEARNING YEAR.] Any district 321.15 operating a flexible learning year programshallmust enter into 321.16 one contract governing the entire learning year with each 321.17 teacher employed in a flexible program. If individual teachers 321.18 contract to teach less than a period of 175 days during a 321.19 learning year, each 175 days of employment accrued during any 321.20 five-year period after the adoption of a flexible learning year 321.21 programshallmust be deemed consecutive andshall321.22constituteconstitutes a full year's employment for purposes of 321.23 establishing and retaining continuing contract rights to a full 321.24 learning year position pursuant to sections 125.12, subdivisions 321.25 3 and 4, and 125.17, subdivisions 2 and 3. A teacher who has 321.26 not been discharged or advised of a refusal to renew the 321.27 teacher's contract by the applicable date, as specified in 321.28 section 125.12 or 125.17, in the year in which the teacher will 321.29 complete the requisite number of days for securing a continuing 321.30 contractshallmust have a continuing full learning year 321.31 contract with the district. 321.32 Subd. 5. [CONTRACT RIGHTS; TERMINATION OF PROGRAM.] 321.33 Continuing contract rights established pursuant to this 321.34 sectionshallmust not be impaired or lost by the termination of 321.35 a flexible learning year program. 321.36 Sec. 7. Minnesota Statutes 1996, section 120.66, is 322.1 amended to read: 322.2 120.66 [POWERS AND DUTIES OF THE STATE BOARD.] 322.3 Subdivision 1. [POWERS AND DUTIES.] The state boardof322.4education shallmust: 322.5 (1) promulgate rules necessary to the operation of sections 322.6 120.59 to 120.67; 322.7 (2) cooperate with and provide supervision of flexible 322.8 learning year programs to determine compliance with the 322.9 provisions of sections 120.59 to 120.67, the state board 322.10 standards and qualifications, and the proposed program as 322.11 submitted and approved; 322.12 (3) provide any necessary adjustments of (a) attendance and 322.13 membership computations and (b) the dates and percentages of 322.14 apportionment of state aids; and 322.15 (4) consistent with the definition of "average daily 322.16 membership" in section 124.17, subdivision 2, furnish the board 322.17 of a district implementing a flexible learning year program with 322.18 a formula for computing average daily membership. This formula 322.19shallmust be computed so that tax levies to be made by the 322.20 district, state aids to be received by the district, and any and 322.21 all other formulas based upon average daily membership are not 322.22 affected solely as a result of adopting this plan of instruction. 322.23 Subd. 2. [LIMITATIONS.] Sections 120.59 to 120.67shall322.24 may not be construed to authorize the state board to require the 322.25 establishment of a flexible learning year program in any 322.26 district in which the board has not voted to establish, 322.27 maintain, and operate such a program. 322.28 Sec. 8. Minnesota Statutes 1996, section 121.585, 322.29 subdivision 2, is amended to read: 322.30 Subd. 2. [STATE BOARD DESIGNATION.] An area learning 322.31 center designated by the state must be a site. To be 322.32 designated, a district or center must demonstrate to the 322.33 commissionerof children, families, and learningthat it will: 322.34 (1) provide a program of instruction that permits pupils to 322.35 receive instruction throughout the entire year; and 322.36 (2) maintain a record system that, for purposes of section 323.1 124.17, permits identification of membership attributable to 323.2 pupils participating in the program. The record system and 323.3 identification must ensure that the program will not have the 323.4 effect of increasing the total number of pupil units 323.5 attributable to an individual pupil as a result of a learning 323.6 year program. 323.7 Sec. 9. Minnesota Statutes 1996, section 121.585, 323.8 subdivision 6, is amended to read: 323.9 Subd. 6. [CONTRACTS.] A district may contract with a 323.10 licensed employee to provide services in a learning year program 323.11 that are in addition to the services provided according to the 323.12 master contract of employment for teachers or an equivalent 323.13 contract for licensed employees who are not teachers. These 323.14 additional services and compensation, if any, for the services 323.15shallmust not become a part of the employee's continuing 323.16 contract rights under section 125.12 or 125.17. 323.17 Sec. 10. Minnesota Statutes 1996, section 121.585, 323.18 subdivision 7, is amended to read: 323.19 Subd. 7. [REVENUE COMPUTATION AND REPORTING.] Aid and levy 323.20 revenue computationsshallmust be based on the total number of 323.21 hours of education programs for pupils in average daily 323.22 membership for each fiscal year. For purposes of section 323.23 124.17, average daily membership shall be computed by dividing 323.24 the total number of hours of participation for the fiscal year 323.25 by the minimum number of hours for a year determined for the 323.26 appropriate grade level. Hours of participation that occur 323.27 after the close of the regular instructional year and before 323.28 July 1shallmust be attributed to the following fiscal year. 323.29 Thirty hours may be used for teacher workshops, staff 323.30 development, or parent-teacher conferences. As part of each 323.31 pilot program, the departmentof children, families, and323.32learningand each district must report and evaluate the changes 323.33 needed to adjust the dates of the fiscal year for aid and levy 323.34 computation and fiscal year reporting. For revenue computation 323.35 purposes, the learning year program shall generate revenue based 323.36 on the formulas for the fiscal year in which the services are 324.1 provided. 324.2 State aid and levy revenue computation for the learning 324.3 year programs begins July 1, 1988, for fiscal year 1989. 324.4 Sec. 11. Minnesota Statutes 1996, section 121.904, 324.5 subdivision 1, is amended to read: 324.6 Subdivision 1. [SCOPE.]SchoolDistrict revenuesshall324.7 must be recognized and reported on the district books of account 324.8 in accordance with this section. 324.9 Sec. 12. Minnesota Statutes 1996, section 121.904, 324.10 subdivision 2, is amended to read: 324.11 Subd. 2. [APPLICABILITY TO PERIOD AND FUND.] Except as 324.12 provided in this section, revenuesshallmust be recorded in a 324.13 manner which clearly indicates that they are applicable to a 324.14 specific accounting period and fund. 324.15 Sec. 13. Minnesota Statutes 1996, section 121.904, 324.16 subdivision 3, is amended to read: 324.17 Subd. 3. [RECEIVABLE.] Receivablesshallmust be recorded 324.18 in a manner which clearly reflects the amounts of money due to a 324.19 particular fund from public and private sources at the date of 324.20 each accounting statement. 324.21 Sec. 14. Minnesota Statutes 1997 Supplement, section 324.22 121.904, subdivision 4a, is amended to read: 324.23 Subd. 4a. [LEVY RECOGNITION.] (a) "School district tax 324.24 settlement revenue" means the current, delinquent, and 324.25 manufactured home property tax receipts collected by the county 324.26 and distributed to the school district, including distributions 324.27 made pursuant to section 279.37, subdivision 7, and excluding 324.28 the amount levied pursuant to section 124.914, subdivision 1. 324.29 (b) In June of each year, the school districtshallmust 324.30 recognize as revenue, in the fund for which the levy was made, 324.31 the lesser of: 324.32 (1) the May, June, and July school district tax settlement 324.33 revenue received in that calendar year; or 324.34 (2) the sum of the state aids and credits enumerated in 324.35 section 124.155, subdivision 2, which are for the fiscal year 324.36 payable in that fiscal year plus an amount equal to the levy 325.1 recognized as revenue in June of the prior year plus 31 percent 325.2 of the amount of the levy certified in the prior calendar year 325.3 according to section 124A.03, subdivision 2; or 325.4 (3)(i) 7.0 percent of the lesser of the amount of the 325.5 general education levy certified in the prior calendar year 325.6 according to section 124A.23, subdivision 2, or the difference 325.7 between the amount of the total general fund levy certified in 325.8 the prior calendar year and the sum of the amounts certified in 325.9 the prior calendar year according to sections 124A.03, 325.10 subdivision 2; 124.315, subdivision 4; 124.912, subdivisions 1, 325.11 paragraph (2), 2, and 3; 124.916, subdivisions 1, 2, and 3, 325.12 paragraphs (4), (5), and (6); and 124.918, subdivision 6; plus 325.13 (ii) 31 percent of the referendum levy certified in the 325.14 prior calendar year according to section 124A.03, subdivision 2; 325.15 plus 325.16 (iii) the entire amount of the levy certified in the prior 325.17 calendar year according to sections 124.315, subdivision 4; 325.18 124.912, subdivisions 1, paragraph (2), 2, and 3; 124.916, 325.19 subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 325.20 124.918, subdivision 6. 325.21 (c) In July of each year, theschooldistrict shall 325.22 recognize as revenue that portion of the school district tax 325.23 settlement revenue received in that calendar year and not 325.24 recognized as revenue for the previous fiscal year pursuant to 325.25 clause (b). 325.26 (d) All other school district tax settlement revenueshall325.27 must be recognized as revenue in the fiscal year of the 325.28 settlement. Portions of the school district levy assumed by the 325.29 state, including prior year adjustments and the amount to fund 325.30 the school portion of the reimbursement made pursuant to section 325.31 273.425, shall be recognized as revenue in the fiscal year 325.32 beginning in the calendar year for which the levy is payable. 325.33 Sec. 15. Minnesota Statutes 1996, section 121.904, 325.34 subdivision 4c, is amended to read: 325.35 Subd. 4c. [CHANGE IN LEVY RECOGNITION PERCENT.] (a) Money 325.36 appropriated under section 16A.152, subdivision 2, must be used 326.1 to reduce the levy recognition percent specified in subdivision 326.2 4a, clauses (b)(2) and (b)(3), for taxes payable in the same 326.3 calendar year the appropriation is made. 326.4 (b) The levy recognition percent shall equal the result of 326.5 the following computation: the current levy recognition 326.6 percent, times the ratio of 326.7 (1) the statewide total amount of levy recognized in June 326.8 of the year in which the taxes are payable pursuant to 326.9 subdivision 4a, clause (b), excluding those levies that are 326.10 shifted for revenue recognition but are not included in the 326.11 computation of the adjustment to aids under section 124.155, 326.12 subdivision 1, reduced by the difference between the amount of 326.13 money appropriated under section 16A.152, subdivision 2, and the 326.14 amount required for the adjustment payment under clause (d), to 326.15 (2) the statewide total amount of the levy recognized in 326.16 June of the year in which the taxes are payable pursuant to 326.17 subdivision 4a, clause (b), excluding those levies that are 326.18 shifted for revenue recognition but are not included in the 326.19 computation of the adjustment to aids under section 124.155, 326.20 subdivision 1. 326.21 The resultshallmust be rounded up to the nearest 326.22 one-tenth of a percent. However, in no case shall the levy 326.23 recognition percent be reduced below zero or increased above the 326.24 current levy recognition percent. 326.25 (c) The commissioner of finance must certify to the 326.26 commissioner of children, families, and learning the amount 326.27 available to reduce the levy recognition percent computed under 326.28 this subdivision by January 5 of each year. The commissioner of 326.29 children, families, and learning must notifyschooldistricts of 326.30 a change in the levy recognition percent by January 15 of the 326.31 same month. 326.32 (d) When the levy recognition percent is increased or 326.33 decreased as provided in this subdivision, a special aid 326.34 adjustment shall be made to eachschooldistrict with an 326.35 operating referendum levy: 326.36 (i) When the levy recognition percent is increased from the 327.1 prior fiscal year, the commissioner of children, families, and 327.2 learning shall calculate the difference between (1) the amount 327.3 of the levy under section 124A.03, that is recognized as revenue 327.4 for the current fiscal year according to subdivision 4a; and (2) 327.5 the amount of the levy, under section 124A.03, that would have 327.6 been recognized as revenue for the current fiscal year had the 327.7 percentage according to subdivision 4a, not been increased. The 327.8 commissioner shall reduce other aids due the district by the 327.9 amount of the difference. This aid reduction shall be in 327.10 addition to the aid reduction required because of the increase 327.11 pursuant to this subdivision of the levy recognition percent. 327.12 (ii) When the levy recognition percent is reduced from the 327.13 prior fiscal year, a special adjustment paymentshallmust be 327.14 made to eachschooldistrict with an operating referendum levy 327.15 that received an aid reduction when the levy recognition percent 327.16 was last increased. The special adjustment paymentshallmust 327.17 be in addition to the additional payments required because of 327.18 the reduction pursuant to this subdivision of the levy 327.19 recognition percent. The amount of the special adjustment 327.20 payment shall be computed by the commissioner of children, 327.21 families, and learning such that any remaining portion of the 327.22 aid reduction these districts received that has not been repaid 327.23 is repaid on a proportionate basis as the levy recognition 327.24 percent is reduced from 50 percent to 31 percent. The special 327.25 adjustment payment must be included in the state aid payments to 327.26schooldistricts according to the schedule specified in section 327.27 124.195, subdivision 3. 327.28 (e) The commissioner of finance shall transfer from the 327.29 general fund to the education aids appropriations specified by 327.30 the commissioner of children, families, and learning, the 327.31 amounts needed to finance the additional payments required 327.32 because of the reduction pursuant to this subdivision of the 327.33 levy recognition percent. Payments to aschooldistrict of 327.34 additional state aids resulting from a reduction in the levy 327.35 recognition percent must be included in the cash metering of 327.36 payments made according to section 124.195 after January 15, and 328.1 must be paid in a manner consistent with the percent specified 328.2 in that section. 328.3 Sec. 16. Minnesota Statutes 1996, section 121.904, 328.4 subdivision 13, is amended to read: 328.5 Subd. 13. [DEVIATIONS FOOTNOTED.] Deviations from the 328.6 principles set forth in this sectionshallmust be evaluated and 328.7 explained in footnotes to audited financial statements. 328.8 Sec. 17. Minnesota Statutes 1996, section 121.906, is 328.9 amended to read: 328.10 121.906 [EXPENDITURES; REPORTING.] 328.11 Subdivision 1. [RECOGNITION.]SchoolDistrict expenditures 328.12shallmust be recognized and reported on the district books of 328.13 account in accordance with this section. 328.14There shall beFiscal year-end recognition of expenditures 328.15 and the related offsetting liabilities must be recorded in each 328.16 fund in accordance with the uniform financial accounting and 328.17 reporting standards for Minnesota school districts. 328.18 Encumbrances outstanding at the end of the fiscal year do not 328.19 constitute expenditures or liabilities. 328.20 Deviations from the principles set forth in this 328.21 subdivisionshallmust be evaluated and explained in footnotes 328.22 to audited financial statements. 328.23 Subd. 2. [ACCOUNTING.] Expenditures for any legal purpose 328.24 of theschooldistrict not accounted for elsewhereshallmust be 328.25 accounted for in the general fund. 328.26 Sec. 18. Minnesota Statutes 1996, section 121.908, is 328.27 amended to read: 328.28 121.908 [ACCOUNTING, BUDGETING AND REPORTING REQUIREMENT.] 328.29 Subdivision 1. [UNIFORM FINANCIAL ACCOUNTING AND REPORTING 328.30 STANDARDS.] Each Minnesota school districtshallmust adopt the 328.31 uniform financial accounting and reporting standards for 328.32 Minnesota school districts provided for in guidelines adopted by 328.33 the departmentof children, families, and learning. 328.34 Subd. 2. [AUDITED FINANCIAL STATEMENT.] Each district 328.35shallmust submit to the commissioner by August 15 of each year 328.36 an unaudited financial statement for the preceding fiscal year. 329.1 This statementshallmust be submitted on forms prescribed by 329.2 the commissioner. 329.3 Subd. 3. [STATEMENT FOR COMPARISON AND CORRECTION.] By 329.4 December 31 of the calendar year of the submission of the 329.5 unaudited financial statement, the districtshallmust provide 329.6 to the commissioner and state auditor an audited financial 329.7 statement prepared in a form which will allow comparison with 329.8 and correction of material differences in the unaudited 329.9 statement. The audited financial statement must also provide a 329.10 statement of assurance pertaining to uniform financial 329.11 accounting and reporting standards compliance. 329.12 Subd. 3a. [BUDGET APPROVAL.] Prior to July 1 of each year, 329.13 theschoolboard of each districtshallmust approve and adopt 329.14 its revenue and expenditure budgets for the next school year. 329.15 The budget document so adoptedshallmust be considered an 329.16 expenditure-authorizing or appropriations document. No funds 329.17 shall be expended by any board or district for any purpose in 329.18 any school year prior to the adoption of the budget document 329.19 which authorizes that expenditure, or prior to an amendment to 329.20 the budget document by the board to authorize the expenditure. 329.21 Expenditures of funds in violation of this subdivision shall be 329.22 considered unlawful expenditures. 329.23 Subd. 5. [JOINT POWERS AGREEMENTS; SC'S, EDUCATION 329.24 DISTRICTS.] All governmental units formed by joint powers 329.25 agreements entered into by districts pursuant to section 120.17, 329.26 120.1701, 123.351, 471.59, or any other law and all service 329.27 cooperatives and education districtsshall beare subject to the 329.28 provisions of this section. 329.29 Subd. 6. [BENEFITS.] Aschooldistrict providing early 329.30 retirement incentive payments under section 125.611, severance 329.31 pay under section 465.72, or health insurance benefits to 329.32 retired employees under section 471.61, must account for the 329.33 payments according to uniform financial accounting and reporting 329.34 standards. 329.35 Sec. 19. Minnesota Statutes 1996, section 121.911, is 329.36 amended to read: 330.1 121.911 [CASH FLOW; SCHOOL DISTRICT REVENUES; BORROWING FOR 330.2 CURRENT OPERATING COSTS; CAPITAL EXPENDITURE DEFICITS.] 330.3 Subdivision 1. [STATE AIDS PAYMENT.] The commissioner of 330.4 finance shall remit all payments of state aids toschool330.5 districts in conformance with the dates provided by law or, when 330.6 not so provided, with a schedule of aid payments to be 330.7 established by the commissioner of children, families, and 330.8 learning in consultation with other affected state agencies. 330.9 Subd. 2. [TAXES.] The auditors or finance officers of 330.10 Minnesota counties shall remit all payments of taxes to 330.11 theschooldistricts in conformance with the provisions of 330.12 section 276.11.SchoolDistricts which have need for tax 330.13 remittance advances may secure them from the counties by making 330.14 formal requests in conformance with section 276.11. 330.15 Subd. 3. [TAX AND AID ANTICIPATION CERTIFICATES.] 330.16 Minnesota school districts may issue tax and aid anticipation 330.17 certificates in conformance with the provisions of sections 330.18 124.71 to 124.76, with the additional provision that the 330.19 proceeds of such borrowing or any other method of borrowing 330.20 shall be recorded as liabilities of funds for which the taxes 330.21 were levied, or for which the aids are receivable. Nothing in 330.22 this subdivisionshall provideprovides authority for borrowing 330.23 against the tax levies and aids of oneschooldistrict fund for 330.24 the purpose of increasing the available cash balance of another 330.25 fund. 330.26 Subd. 4. [BORROWING FOR OUTSTANDING BONDS.] Unless 330.27 otherwise provided by law,noa districtshallmust not, for the 330.28 purpose of increasing the available cash balance of another 330.29 fund, borrow or transfer funds from the building construction 330.30 fund, debt redemption fund, trust and agency fund, or from any 330.31 sinking fund for outstanding bonds issued for any purpose. 330.32 However, if the contemplated use for which funds were originally 330.33 placed in the building construction fund or a sinking fund is 330.34 afterwards abandoned or if a balance remains after the use is 330.35 accomplished, a district may devote these funds as provided in 330.36 section 475.65. For the purpose of insuring fund integrity, on 331.1 determining that a district is in violation of this subdivision 331.2 or section 121.904, the commissioner shall require that such 331.3 district maintain separate bank accounts for building 331.4 construction funds, debt redemption funds, trust and agency 331.5 funds, and sinking funds for outstanding bonds. Nothing in this 331.6 subdivision shall be construed to prohibit the use of common 331.7 bank accounts for other funds unless prohibited by law. 331.8 Subd. 5. [DEFICIT FOR CAPITAL PROJECTS.] Upon approval by 331.9 the commissionerof children, families, and learning, a district 331.10 may incur a deficit in the reserve for operating capital account 331.11 for a period not to exceed three years to provide money for 331.12 capital projects. The commissioner shall approve a description 331.13 of the project and a financial plan to recover the deficitshall331.14be approved by the commissionerprior to the initiation of the 331.15 project. 331.16 Sec. 20. Minnesota Statutes 1997 Supplement, section 331.17 121.912, subdivision 1, is amended to read: 331.18 Subdivision 1. [LIMITATIONS.] Except as provided in this 331.19 subdivision, sections 121.9121, 123.36, 475.61, and 475.65, a 331.20schooldistrict may not permanently transfer money from (1) an 331.21 operating fund to a nonoperating fund; (2) a nonoperating fund 331.22 to another nonoperating fund; or (3) a nonoperating fund to an 331.23 operating fund. Permanent transfers may be made from any fund 331.24 to any other fund to correct for prior fiscal years' errors 331.25 discovered after the books have been closed for that year. 331.26 Permanent transfers may be made from the general fund to any 331.27 other operating funds according to section 123.7045 or if the 331.28 resources of the other fund are not adequate to finance approved 331.29 expenditures from that other fund. Permanent transfers may also 331.30 be made from the general fund to eliminate deficits in another 331.31 fund when that other fund is being discontinued. When a 331.32 district discontinues operation of a district-owned bus fleet or 331.33 a substantial portion of a fleet, the balance shall cancel to 331.34 the district's general fund. 331.35 Sec. 21. Minnesota Statutes 1996, section 121.912, 331.36 subdivision 1a, is amended to read: 332.1 Subd. 1a. [TECHNICAL COLLEGES.] Moneyshallmust not be 332.2 transferred from the post-secondary general fund to any other 332.3 operating or nonoperating fund. 332.4 Sec. 22. Minnesota Statutes 1996, section 121.912, 332.5 subdivision 1b, is amended to read: 332.6 Subd. 1b. [TRA AND FICA TRANSFER.] (a) Notwithstanding 332.7 subdivision 1, a district may transfer money from the general 332.8 fund to the community service fund for the employer 332.9 contributions for teacher retirement and FICA for employees who 332.10 are members of a teacher retirement association and who are paid 332.11 from the community service fund. 332.12 (b) A districtshallmust not transfer money under 332.13 paragraph (a) for employees who are paid with money other than 332.14 normal operating funds, as defined in section 354.05, 332.15 subdivision 27. 332.16 Sec. 23. Minnesota Statutes 1996, section 121.912, 332.17 subdivision 2, is amended to read: 332.18 Subd. 2. [DEFINITION.] As used in this section, "operating 332.19 fund" and "nonoperating fund"shallhave the meanings specified 332.20 in the uniform financial accounting and reporting standards for 332.21 Minnesota school districts. Any transfer for a period in excess 332.22 of one year shall be deemed to be a permanent transfer. 332.23 Sec. 24. Minnesota Statutes 1996, section 121.912, 332.24 subdivision 3, is amended to read: 332.25 Subd. 3. [DEFICITS; EXCEPTION.] For the purposes of this 332.26 section, a permanent transfer includes creating a deficit in a 332.27 nonoperating fund for a period past the end of the current 332.28 fiscal year which is covered by moneys in an operating fund. 332.29 However, a deficit in the capital expenditure fund pursuant to 332.30 section 121.911, subdivision 5,shalldoes not constitute a 332.31 permanent transfer. 332.32 Sec. 25. Minnesota Statutes 1996, section 121.912, 332.33 subdivision 5, is amended to read: 332.34 Subd. 5. [ACCOUNT TRANSFER FOR CERTAIN SEVERANCE PAY.] A 332.35schooldistrict may maintain in a designated for certain 332.36 severance pay account not more than 50 percent of the amount 333.1 necessary to meet the obligations for the portion of severance 333.2 pay that constitutes compensation for accumulated sick leave to 333.3 be used for payment of premiums for group insurance provided for 333.4 former employees by the district. The amount necessaryshall333.5 must be calculated according to standards established by the 333.6 advisory council on uniform financial accounting and reporting 333.7 standards. 333.8 Sec. 26. Minnesota Statutes 1996, section 121.912, 333.9 subdivision 6, is amended to read: 333.10 Subd. 6. [ACCOUNT TRANSFER FOR REORGANIZING DISTRICTS.] A 333.11schooldistrict that has reorganized according to section 333.12 122.22, 122.23, or sections 122.241 to 122.248, or has conducted 333.13 a successful referendum on the question of combination under 333.14 section 122.243, subdivision 2, or consolidation under section 333.15 122.23, subdivision 13, or has been assigned an identification 333.16 number by the commissioner under section 122.23, subdivision 14, 333.17 may make permanent transfers between any of the funds in the 333.18 newly created or enlarged district with the exception of the 333.19 debt redemption fund, food service fund, and health and safety 333.20 account of the capital expenditure fund. Fund transfers under 333.21 this section may be made for up to one year prior to the 333.22 effective date of combination or consolidation and during the 333.23 year following the effective date of reorganization. 333.24 Sec. 27. Minnesota Statutes 1996, section 121.9121, 333.25 subdivision 2, is amended to read: 333.26 Subd. 2. [APPLICATION.] A board requesting authority to 333.27 transfer moneyshallmust apply to the commissioner and provide 333.28 information requested. The applicationshallmust indicate the 333.29 law or rule prohibiting the desired transfer.It shallThe 333.30 application must be signed by the superintendent and approved by 333.31 the school board. 333.32 Sec. 28. Minnesota Statutes 1996, section 121.9121, 333.33 subdivision 4, is amended to read: 333.34 Subd. 4. [APPROVAL STANDARD.] The commissioner may approve 333.35 a request only when an event has occurred in a district that 333.36 could not have been foreseen by the district. The eventshall334.1 must relate directly to the fund or account involved and to the 334.2 amount to be transferred. 334.3 Sec. 29. Minnesota Statutes 1996, section 121.914, 334.4 subdivision 2, is amended to read: 334.5 Subd. 2. [STATUTORY OPERATING DEBT.] If the amount of the 334.6 operating debt is more than 2-1/2 percent of the most recent 334.7 fiscal year's expenditure amount for the funds considered under 334.8 subdivision 1, the net negative undesignated fund balanceshall334.9beis defined as "statutory operating debt" for the purposes of 334.10 this section and sections 121.917 and 124.914, subdivision 1. 334.11 Sec. 30. Minnesota Statutes 1996, section 121.914, 334.12 subdivision 3, is amended to read: 334.13 Subd. 3. [DEBT VERIFICATION.] The commissioner shall 334.14 establish a uniform auditing or other verification procedure for 334.15schooldistricts to determine whether a statutory operating debt 334.16 exists in any Minnesota school district as of June 30, 1977. 334.17 This procedureshall alsomust identify all interfund transfers 334.18 made during fiscal year 1977 from a fund included in computing 334.19 statutory operating debt to a fund not included in computing 334.20 statutory operating debt. The standards for this uniform 334.21 auditing or verification procedureshallmust be promulgated by 334.22 the state board pursuant to chapter 14. If aschooldistrict 334.23 applies to the commissioner for a statutory operating debt 334.24 verification or if the unaudited financial statement for the 334.25 school year ending June 30, 1977 reveals that a statutory 334.26 operating debt might exist, the commissioner shall require a 334.27 verification of the amount of the statutory operating debt which 334.28 actually does exist. 334.29 Sec. 31. Minnesota Statutes 1996, section 121.914, 334.30 subdivision 4, is amended to read: 334.31 Subd. 4. [DEBT ELIMINATION.] If an audit or other 334.32 verification procedure conducted pursuant to subdivision 3 334.33 determines that a statutory operating debt exists, a 334.34 districtshallmust follow the procedures set forth in section 334.35 124.914, subdivision 1, to eliminate this statutory operating 334.36 debt. 335.1 Sec. 32. Minnesota Statutes 1996, section 121.914, 335.2 subdivision 5, is amended to read: 335.3 Subd. 5. [CERTIFICATION OF DEBT.] The commissionerof335.4children, families, and learningshall certify the amount of 335.5 statutory operating debt for eachschooldistrict. Prior to 335.6 June 30, 1979, the commissioner may, on the basis of corrected 335.7 figures, adjust the total amount of statutory operating debt 335.8 certified for any district. 335.9 Sec. 33. Minnesota Statutes 1996, section 121.914, 335.10 subdivision 6, is amended to read: 335.11 Subd. 6. [REPORT.] On January 15, 1998, the commissioner 335.12of children, families, and learningshall report to the 335.13 legislature on the districts for which the levy allowable under 335.14 section 124.914, subdivision 1, has been insufficient to 335.15 eliminate the statutory operating debt of the district, 335.16 determined as of June 30, 1977. 335.17 Sec. 34. Minnesota Statutes 1996, section 121.914, 335.18 subdivision 7, is amended to read: 335.19 Subd. 7. [APPLICABILITY.] This section and the provisions 335.20 of section 124.914, subdivision 1,shall beare applicable only 335.21 to common, independent, and special school districts and 335.22 districts formed pursuant to Laws 1967, chapter 822, as amended, 335.23 and Laws 1969, chapters 775 and 1060, as amended. This section 335.24 and the provisions of section 124.914, subdivision 1,shalldo 335.25 not apply to independent school district No. 625. 335.26 Sec. 35. Minnesota Statutes 1996, section 121.914, 335.27 subdivision 8, is amended to read: 335.28 Subd. 8. [PLAN DISCLOSURE.] Any district eligible to 335.29 receive any amounts pursuant to section 124.914, subdivision 335.30 1,shallmust disclose its statutory operating debt retirement 335.31 plan by footnote to the audited financial statement. 335.32 Sec. 36. Minnesota Statutes 1996, section 121.917, is 335.33 amended to read: 335.34 121.917 [EXPENDITURE LIMITATIONS.] 335.35 Subdivision 1. [REDUCE STATUTORY OPERATING DEBT.] (a) 335.36 Beginning in fiscal year 1978 and in each year thereafter, a 336.1 district which had statutory operating debt on June 30, 1977 336.2 pursuant to section 121.914shallmust limit its expenditures in 336.3 each fiscal year so that the amount of its statutory operating 336.4 debt calculated at the end of that fiscal year is not greater 336.5 than the amount of the district's statutory operating debt as of 336.6 June 30, 1977, as certified and adjusted by the commissioner, 336.7 increased by an amount equal to 2-1/2 percent of that district's 336.8 operating expenditures for the fiscal year for which the 336.9 statutory operating debt calculation is being made. 336.10 (b) When a district is no longer required to levy pursuant 336.11 to section 124.914, subdivision 1, subdivision 2shall beis 336.12 applicable. 336.13 Subd. 2. [UNDESIGNATED FUND BALANCES.] Beginning in fiscal 336.14 year 1978 and each year thereafter, any district not subject to 336.15 the provisions of subdivision 1shallmust limit its 336.16 expenditures so that its undesignated fund balancesshalldo not 336.17 constitute statutory operating debt as defined in section 336.18 121.914. 336.19 Subd. 3. [FAILURE TO LIMIT EXPENDITURES.] If aschool336.20 district does not limit its expenditures in accordance with this 336.21 section, the commissioner may so notify the appropriate 336.22 committees of the legislature by no later than January 1 of the 336.23 year following the end of that fiscal year. 336.24 Subd. 4. [SPECIAL OPERATING PLAN.] (1) If the net negative 336.25 unappropriated operating fund balance as defined in section 336.26 124A.02, subdivision 25, calculated in accordance with the 336.27 uniform financial accounting and reporting standards for 336.28 Minnesota school districts, as of June 30 each year, is more 336.29 than 2-1/2 percent of the year's expenditure amount, the 336.30 districtshallmust, prior to January 31 of the next fiscal 336.31 year, submit a special operating plan to reduce the district's 336.32 deficit expenditures to the commissionerof children, families,336.33and learningfor approval. The commissioner may also require 336.34 the district to provide evidence that the district meets and 336.35 will continue to meet all of the curriculum requirements of the 336.36 state board. 337.1 Notwithstanding any other law to the contrary, a district 337.2 submitting a special operating plan to the commissioner under 337.3 this clause which is disapproved by the commissionershallmust 337.4 not receive any aid pursuant to chapters 124 and 124A until a 337.5 special operating plan of the district is so approved. 337.6 (2) A districtshallmust receive aids pending the approval 337.7 of its special operating plan under clause (1). A district 337.8 which complies with its approved operating planshallmust 337.9 receive aids as long as the district continues to comply with 337.10 the approved operating plan. 337.11 Sec. 37. Minnesota Statutes 1996, section 123.11, 337.12 subdivision 1, is amended to read: 337.13 Subdivision 1. [ANNUAL MEETING.] The annual meeting of all 337.14 common districtsshallmust be held on the last Tuesday in June, 337.15 at 8:00 p.m., unless a different hour has been fixed at the 337.16 preceding annual meeting, upon ten days' posted. The clerk 337.17 shall give noticegiven by the clerk, andof the meeting, 337.18 specifying the matters to come before such meeting; but. 337.19 Failure of the clerk to give such notice, or to specify the 337.20 business to be transactedthereat, shall not affect the validity 337.21 of any business, except the raising of money to build or 337.22 purchase a school house, the authorizing of an issue of bonds, 337.23 the fixing of a school house site, or the organization as an 337.24 independent district. At the annual meeting in a common 337.25 district five legal voters shall constitute a quorum. The chair 337.26 and clerk of the board shall officiate in their respective 337.27 capacities at all meetings of the electors of the district. In 337.28 the event of the absence of the chair or clerk, the voters shall 337.29 elect a chair or clerk pro tem. The voters shall have the power 337.30 in an annual meeting to repeal and modify their proceedings. 337.31 The polls at all meetings shall be open at least one hour. 337.32 Sec. 38. Minnesota Statutes 1996, section 123.11, 337.33 subdivision 2, is amended to read: 337.34 Subd. 2. [ELECTIONS.] The annual meetingshallmust have 337.35 power to elect, by ballot, officers of the district. In all 337.36 elections or vote by ballot, the clerk shall record the names of 338.1 all voters participating therein and the chair shall appoint two 338.2 electorswho. The electors, with the assistance of the clerk, 338.3 shall supervise the balloting and canvass the votes. If any 338.4 candidates receive an equal number of votes for an office, the 338.5 board shall resolve the tie by lot. 338.6 Sec. 39. Minnesota Statutes 1996, section 123.11, 338.7 subdivision 3, is amended to read: 338.8 Subd. 3. [CANDIDATES FOR OFFICE.] Any person desiring to 338.9 be a candidate for a district office at the annual meeting of 338.10 the district shall file with the clerk of the district an 338.11 application to be placed on the ballot for such office, or. Any 338.12 five voters of the district may filesuchan application for or 338.13 on behalf of any qualified voter in the district that they 338.14 desireshallto besucha candidate.The application338.15 Applications shall be filed not less than 12 days before the 338.16 annualschooldistrict meeting. The clerk of the district, in 338.17 the notice of annual meeting, shall state the names of the 338.18 candidates for whom applications have been filed, failure to do 338.19 so shall not affect the validity of the election thereafter 338.20 held. At the annual meeting of common districts, nomination of 338.21 candidates for offices may be made from the floor by any 338.22 qualified voter. 338.23 Sec. 40. Minnesota Statutes 1996, section 123.11, 338.24 subdivision 4, is amended to read: 338.25 Subd. 4. [BALLOTS.] The clerk shall prepare, at the 338.26 expense of the district, necessary ballots for the election of 338.27 officers placing thereon the names of the proposed candidates 338.28 for such office with a blank space after such names, such. The 338.29 ballots shall be marked as official ballots, andthe ballots so338.30prepared by the clerk of the districtshall be used to the 338.31 exclusion of all other ballots at such annual meeting or 338.32 election in the election of officers of the district. 338.33 Sec. 41. Minnesota Statutes 1996, section 123.11, 338.34 subdivision 7, is amended to read: 338.35 Subd. 7. [SPECIAL MEETING.] Upon the filing of a petition 338.36 therefor, executed by five eligible voters, as defined in 339.1 Minnesota election law, of the common district, specifying the 339.2 business to be acted upon, or upon the adoption of a proper 339.3 resolution so specifying, signed by a majority of the members of 339.4 the board, the clerk shallforthwithcall a special meeting of 339.5 the districtupon. The clerk shall give ten days' posted notice 339.6 and one week's published notice if there be a newspaper printed 339.7 in the district and specify in the notice the business named in 339.8 the request or resolution and the time and place of the 339.9 meeting. If therebeis no clerk in the district or if the 339.10 clerk fails for three days after receiving a request or 339.11 resolution to give notice of a meeting, it may be called by like 339.12 notice by five eligible voters, as defined in Minnesota election 339.13 law, of the district. No business except that named in the 339.14 notice shall be transacted at the meeting. If there are not 339.15 five eligible voters, as defined in Minnesota election law, or 339.16 if there is not a board therein, the county auditor may call a 339.17 special meeting by giving notice thereof as provided in this 339.18 section. The voters at a special meeting have power to repeal 339.19 or modify their proceedings. 339.20 Sec. 42. Minnesota Statutes 1996, section 123.12, is 339.21 amended to read: 339.22 123.12 [BOARDS OF COMMON SCHOOL DISTRICTS.] 339.23 Subdivision 1. [SCHOOL BOARD.] The care, management and 339.24 control of a common district is vested in a board of three 339.25 members to be known as the school board. The term of office of 339.26 a member shall be three years, and until a successor qualifies. 339.27 The board of each common districtshallmust consist of a chair, 339.28 a treasurer, and a clerk. The board may by resolution establish 339.29 a time and place for regular meeting and no notice of such 339.30 meeting need be sent to any members of the board. 339.31 Subd. 2. [FINANCES.] The boardshallmust submit to the 339.32 annual meeting an estimate of the expenses of the district for 339.33 the coming year for a school term as determined by the board and 339.34 for such other specified purposes as the board may deem proper. 339.35 Ifsuchthe annual meetingshall failfails to vote a sufficient 339.36 tax to maintain the district for such time, the boardshallmust 340.1 levy such tax pursuant to and within the limitations of sections 340.2 124.226, 124.2716, 124.91, 124.912, 124.914, 124.916, and 340.3 124.918; but no board shall expend any money or incur any 340.4 liability for any purpose beyond the sum appropriated by vote of 340.5 the district for such purpose, or levied by the board pursuant 340.6 to this subdivision, or on hand and applicable thereto. 340.7 Subd. 9. [SCHOOL VISITS.] The boardshallmust visit each 340.8 school at least once every three months. 340.9 Subd. 14. [OFFICIAL NEWSPAPER.] At its first meeting 340.10 following July 1 each year, the boardshallmust designate, by 340.11 resolution, as the official newspaper of the district, some 340.12 legal newspaper of general circulation within the district, and 340.13 contract with such newspaper for its publications. If there is 340.14 more than one such newspaper, the boardshall let suchmust 340.15 enter a contracttowith the lowest responsible bidder at the 340.16 earliest practicable date. All notices and proceedings required 340.17 by law to be published by the boardshallmust be published in 340.18 the official newspaper so designated. The fees for such 340.19 publicationshallmust not exceed the fees for publication of 340.20 legal notices as prescribed by Minnesota Statutes. 340.21 Sec. 43. Minnesota Statutes 1996, section 123.13, is 340.22 amended to read: 340.23 123.13 [OFFICERS OF COMMON SCHOOL DISTRICTS.] 340.24 Subd. 2. [TREASURER.] The treasurer shall receive and be 340.25 responsible for all money in the district and disburse the same 340.26 on orders signed by the clerk and countersigned by the chair or 340.27 other vouchers authorized by law; provided, that,. In the event 340.28 that the chair has been continuously absent from the district 340.29 for a period of 30 days or more, the treasurer may pay orders 340.30 without the signature of the chair. Each ordershallmust state 340.31 the fund on which it is drawn, the name of the payee, and the 340.32 nature of the claim for which such order is issued andshall340.33 must be so drawn that when signed by the treasurer in an 340.34 appropriate place, it becomes a check on theschooldistrict 340.35 depository. The treasurer shall keep an account of each fund, 340.36 and of all receipts and disbursements showing the sources of all 341.1 receipts and the nature and purpose of disbursements. The 341.2 treasurer shall deposit the funds of the district in the 341.3 official depository in accordance with the provisions of law. 341.4 Sec. 44. Minnesota Statutes 1996, section 123.15, is 341.5 amended to read: 341.6 123.15 [SCHOOLHOUSES AND SITES, COMMON SCHOOL DISTRICTS.] 341.7 Subdivision 1. [ACQUISITION OF SITES.] When authorized by 341.8 the voters at a regular meeting or at a special meeting called 341.9 for that purpose, the board may acquire necessary sites for 341.10 school houses, or enlargements or additions to existing school 341.11 house sites, by lease, purchase, or condemnation under the right 341.12 of eminent domain; lease, erect or purchase garages for 341.13 district-owned school buses; and sell or exchange school houses 341.14 or sites and execute deeds of conveyances thereof. It may 341.15 acquire by lease, purchase, or condemnation under eminent domain 341.16 suitable tracts of land eitherwithinin orwithoutoutside of 341.17 the district for the purpose of instruction, experimentation, 341.18 and demonstration in agriculture. In any city, a school site, 341.19 when practicable,shallmust contain at least one block, and,341.20if. Outside of any city, a school site must contain at least two 341.21 acres; and when. If any school house siteshall341.22containcontains less thansuchthe required amount the board 341.23 may, without a vote of the electors, acquire other land adjacent 341.24 to or near such site to make, with such site, all or part 341.25 ofsuchthe required amount.WhenIf property is taken by 341.26 eminent domain by authority of this subdivision, when needed by 341.27 the district for such purpose, the fact that the propertyso341.28needed has beenwas acquired by the owner under the power of 341.29 eminent domain, or is already devoted to public use, shall not 341.30 prevent its acquisition by the district. 341.31 Subd. 2. [SITE DESIGNATION.] The annual meeting or 341.32 election shall have power to designate a site for a school house 341.33 and provide for building or otherwise placing a school house 341.34 thereon, when proper notice has been given; but. A siteon341.35which awith an existing school housestandsor where a school 341.36 house isbegunbeing built shall not be changed except by vote 342.1therefor,of three-fifths of the voters of the district voting 342.2 on the question. 342.3 Subd. 3. [TEACHER DWELLING.] When authorized by a 342.4 two-thirds majority of all the electors voting at an annual or 342.5 special meeting, the board may erect, purchase, or acquire a 342.6 dwelling house for the use of its teachers; provided that. The 342.7 proposition shall be submitted only at a meeting or election,. 342.8 The notice ofwhich statedthe meeting shall state thatsuchthe 342.9 propositionwouldshall be considered or submittedthereat. 342.10 Sec. 45. Minnesota Statutes 1996, section 123.33, 342.11 subdivision 1, is amended to read: 342.12 Subdivision 1. [SCHOOL BOARD.] The care, management, and 342.13 control of independent districtsshall beis vested in a board 342.14 of directors, to be known as the school board. The term of 342.15 office of a member shall be four years and until a successor 342.16 qualifies. The membership of theschoolboard shall consist of 342.17 six elected directors together with such ex officio member as 342.18 may be provided by law.ButThe board may submit to the 342.19 electors at any school election the question whether the board 342.20 shall consist of seven membersand. If a majority of those 342.21 voting on the proposition favor a seven-member board, a seventh 342.22 member shall be elected at the next election of directors for a 342.23 four-year term and thereafter the board shall consist of seven 342.24 members. 342.25 Those districts with a seven-member board may submit to the 342.26 electors at any school election at least 150 days before the 342.27 next election of three members of the board the question whether 342.28 the board shall consist of six members. If a majority of those 342.29 voting on the proposition favor a six-member board instead of a 342.30 seven-member board, two members instead of three members shall 342.31 be elected at the next election of the board of directors and 342.32 thereafter the board shall consist of six members. 342.33 Sec. 46. Minnesota Statutes 1996, section 123.33, 342.34 subdivision 2, is amended to read: 342.35 Subd. 2. [SCHOOL BOARD VACANCY.] A vacancy in any board 342.36 occurs when a member (a) dies,or(b) resigns,or(c) ceases to 343.1 be a resident of the district, or (d) is unable to serve on such 343.2 board and attend its meetings for not less than 90 days because 343.3 of illness or prolonged absence from the district. 343.4 Sec. 47. Minnesota Statutes 1996, section 123.33, 343.5 subdivision 2a, is amended to read: 343.6 Subd. 2a. [SCHOOL BOARD MEMBER TRAINING.] A member 343.7mustshall receive training in school finance and management 343.8 developed in consultation with the Minnesota school boards 343.9 association and consistent with section 121.919. The school 343.10 boards associationshallmust make available to each newly 343.11 elected school board member training in school finance and 343.12 management consistent with section 121.919 within 180 days of 343.13 that member taking office. The program shall be developed in 343.14 consultation with the departmentof children, families, and343.15learningand appropriate representatives of higher education. 343.16 Sec. 48. Minnesota Statutes 1996, section 123.33, 343.17 subdivision 3, is amended to read: 343.18 Subd. 3. [ILL OR ABSENT MEMBER.] A vacancy caused by a 343.19 member being unable to serve on such board and attend its 343.20 meetings for not less than 90 days because of illness or 343.21 prolonged absence from the district, may, after the board has by 343.22 resolution declared such vacancy to exist, be filled by the 343.23 board at any regular or special meeting thereof for the 343.24 remainder of the unexpired term, or until such ill or absent 343.25 member is again able to resume duties as a member of such board, 343.26 whichever date is earliest. Whensuchthe ill or absent member 343.27 isagainable to resume duties as a member of the board, the 343.28 boardshallmust by resolution so determine and declare such 343.29 person to be again a member of the board, and the member 343.30 appointed by the board to be no longer a member thereof. 343.31 Sec. 49. Minnesota Statutes 1996, section 123.33, 343.32 subdivision 4, is amended to read: 343.33 Subd. 4. [VACANCY; APPOINTMENT.] Any other vacancy in a 343.34 boardshallmust be filled by board appointment at a regular or 343.35 special meeting. The appointment shall be evidenced by a 343.36 resolution entered in the minutes and shall continue until an 344.1 election is held under this subdivision. All elections to fill 344.2 vacancies shall be for the unexpired term. If the vacancy 344.3 occurs before the first day to file affidavits of candidacy for 344.4 the next school district general election and more than two 344.5 years remain in the unexpired term, a special election shall be 344.6 held in conjunction with the school district general election. 344.7 The appointed person shall serve until the qualification of the 344.8 successor elected to fill the unexpired part of the term at that 344.9 special election. If the vacancy occurs on or after the first 344.10 day to file affidavits of candidacy for the school district 344.11 general election, or when less than two years remain in the 344.12 unexpired term, there shall be no special election to fill the 344.13 vacancy and the appointed person shall serve the remainder of 344.14 the unexpired term and until a successor is elected and 344.15 qualifies at the school district election. 344.16 Sec. 50. Minnesota Statutes 1996, section 123.33, 344.17 subdivision 6, is amended to read: 344.18 Subd. 6. [RULES.] The board shall make, and when deemed 344.19 advisable, change or repeal rules relating to the organization 344.20 and management of the board and the duties of its officers. 344.21 Sec. 51. Minnesota Statutes 1996, section 123.33, 344.22 subdivision 7, is amended to read: 344.23 Subd. 7. [DUTIES.] The boardshallmust superintend and 344.24 manage the schools of the district; adopt rules for their 344.25 organization, government, and instruction; keep registers; and 344.26 prescribe textbooks and courses of study. The board may enter 344.27 into an agreement with a post-secondary institution for 344.28 secondary or post-secondary nonsectarian courses to be taught at 344.29 a secondary school, nonsectarian post-secondary institution, or 344.30 another location. 344.31 Sec. 52. Minnesota Statutes 1996, section 123.33, 344.32 subdivision 11, is amended to read: 344.33 Subd. 11. [PUBLISHING OF PROCEEDINGS.] The boardshall344.34 must cause its official proceedings to be published once in the 344.35 official newspaper of the district. Such publication shall be 344.36 made within 30 days of the meeting at which such proceedings 345.1 occurred. If the board determines that publication of a summary 345.2 of the proceedings would adequately inform the public of the 345.3 substance of the proceedings, the board may direct that only a 345.4 summary be published, conforming to the requirements of section 345.5 331A.01, subdivision 10. 345.6 Sec. 53. Minnesota Statutes 1996, section 123.33, 345.7 subdivision 11a, is amended to read: 345.8 Subd. 11a. [MAILING OF PROCEEDINGS.] If aschoolboard of 345.9 a district that has no newspaper with its known office of issue 345.10 or a secondary office located within the boundaries of the 345.11 district and no newspaper that is distributed to more than 345.12 one-third of the residences in the district determines that 345.13 mailing a summary of its proceedings would be more economical 345.14 than publication of the proceedings and that it would adequately 345.15 inform the public, it may mail a summary of its proceedings to 345.16 each residence in the district that can be identified as a 345.17 homestead from the property tax records and to each other 345.18 residence in the district that the board can identify. The 345.19 countyshallmust make the property tax records available to the 345.20 board for this purpose. The boardshallmust keep a copy of the 345.21 summary of the proceedings as part of its records. The decision 345.22 of aschoolboard to mail summaries, rather than publish the 345.23 proceedings under this subdivision shall be presumed valid, 345.24 subject to challenge by a court action. 345.25 Sec. 54. Minnesota Statutes 1996, section 123.335, is 345.26 amended to read: 345.27 123.335 [IMPREST CASH FUNDS.] 345.28 Subdivision 1. [IMPREST FUND.] The board may establish one 345.29 or more imprest funds for the payment in cash of any proper 345.30 claim against the district which it is impractical to pay in any 345.31 other manner, except that no claim for salary or personal 345.32 expenses of a district officer or employee shall be paid from 345.33 such funds. The boardshallmust appoint a custodian of each 345.34 such fund who shall be responsible for its safekeeping and 345.35 disbursement according to law. Money for the operation of such 345.36 fund shall be secured by a transfer from the general fund. A 346.1 claim itemizing all the various demands for which disbursements 346.2 have been made from the fundshallmust be presented to the 346.3 board at the next board meeting after the disbursements have 346.4 been made. The boardshallmust act upon it as in the case of 346.5 other claims and an order shall be issued to the custodian for 346.6 the amount allowed. The custodian shall use the proceeds of the 346.7 order to replenish the fund; and. If the board fails to approve 346.8 the claim in full for any sufficient reason, the custodian shall 346.9 be personally responsible for the difference. 346.10 Subd. 2. [ADVANCES.] The board may authorize an imprest 346.11 fund for the purpose of advancing money to officers or employees 346.12 to pay the actual and necessary expenses of such officer or 346.13 employee in attending meetings outside of the district. The 346.14 boardshallmust appoint a custodian of such fund who shall be 346.15 responsible for its safekeeping and disbursement according to 346.16 law. At the first regular meeting of the board after such 346.17 meeting, the custodian shall submit an itemized claim for the 346.18 actual and necessary expenses incurred and paid. The 346.19 boardshallmust act upon it as in the case of other claims and 346.20 an order shall be issued to the custodian for the amount 346.21 allowed. The custodian shall use the proceeds of the order to 346.22 repay the amount advanced from the fund and make final 346.23 settlement with the officer or employee. As an alternative the 346.24 board may authorize travel advances if control is maintained by 346.25 use of a travel advance account, the balance of which is 346.26 supported by names of employees to whom money has been advanced. 346.27 Sec. 55. Minnesota Statutes 1996, section 123.34, 346.28 subdivision 1, is amended to read: 346.29 Subdivision 1. [OFFICER SELECTION.] Within ten days after 346.30 the election of the first board in independent districts and 346.31 annually thereafter on July 1, or as soon thereafter as 346.32 practicable, the boardshallmust meet and organize by selecting 346.33 a chair, clerk, and a treasurer, who shall hold their offices 346.34 for one year and until their successors are selected and 346.35 qualify. The persons who perform the duties of the clerk and 346.36 treasurer need not be members of the board and the board by 347.1 resolution may combine the duties of the offices of clerk and 347.2 treasurer in a single person in the office of business affairs. 347.3 They may appoint a superintendent who shall be ex officio a 347.4 member of the board, but not entitled to vote therein. In 347.5 districts in which board members are elected at the general 347.6 election in November, the annual meeting of the boardshallmust 347.7 be held on the first Monday of January or as soon thereafter as 347.8 practicable. 347.9 Sec. 56. Minnesota Statutes 1996, section 123.34, 347.10 subdivision 2, is amended to read: 347.11 Subd. 2. [CHAIR.] The chair when present shall preside at 347.12 all meetings of the board, countersign all orders upon the 347.13 treasurer for claims allowed by the board, represent the 347.14 district in all actions and perform all the duties usually 347.15 incumbent on such officer. In case of absence, inability, or 347.16 refusal of the clerk to draw orders for the payment of money 347.17 authorized by a vote of the majority of the board to be paid, 347.18 the orders may be drawn by the chair, and paid by the 347.19 treasurer,. A statementthereofof the orders drawn, with a 347.20 copy of such orders,beingshall be delivered to the clerk by 347.21 the treasurer, or the office of the clerk may be declared vacant 347.22 by the chair and treasurer and filled by appointment. 347.23 Sec. 57. Minnesota Statutes 1996, section 123.34, 347.24 subdivision 7, is amended to read: 347.25 Subd. 7. [PERFORMANCE BOND.] When the duty devolves upon 347.26 any person employed by a board to receive money and pay it over 347.27 to the treasurer of the district, the districtshallmust 347.28 require a bond from such person and pay all premiums therefor. 347.29 The amount of each bond shall be fixed by the board and the bond 347.30 approved by it. The bondshallmust be not less than $500 347.31 conditioned for the faithful performance of the duty andshall347.32 be filed with the clerk. In lieu of individual bonds, the 347.33 district may prescribe and keep in effect a schedule or position 347.34 insurance policy or blanket bond in such aggregate amount as the 347.35 district determines, insuring the fidelity of such persons in 347.36 the amount of not less than $500 for each such person. 348.1 Sec. 58. Minnesota Statutes 1996, section 123.34, 348.2 subdivision 8, is amended to read: 348.3 Subd. 8. [CLERK RECORDS.] The clerk shall keep a record of 348.4 all meetings of the district and the board in books provided by 348.5 the district for that purpose. The clerk shall, within three 348.6 days after an election, notify all persons elected of their 348.7 election.On or beforeBy August 15 of each year the clerk 348.8 shall file with the board a report of the revenues, expenditures 348.9 and balances in each fund for the preceding fiscal year. The 348.10 report together with vouchers and supporting documents shall 348.11 subsequently be examined by a public accountant or the state 348.12 auditor, either of whom shall be paid by theschooldistrict, as 348.13 provided in section 121.908, subdivision 3. The board shall by 348.14 resolution approve the report or require a further or amended 348.15 report.On or beforeBy August 15 of each year, the clerk shall 348.16 make and transmit to the commissioner certified reports, showing: 348.17 (1) The condition and value of school property; 348.18 (2) The revenues and expenditures in detail, and such other 348.19 financial information required by law, rule, or as may be called 348.20 for by the commissioner; 348.21 (3) The length of school term and the enrollment and 348.22 attendance by grades; and 348.23 (4) Such other items of information as may be called for by 348.24 the commissioner. 348.25 The clerk shall enter in the clerk's record book copies of 348.26 all reports and of the teachers' term reports, as they appear in 348.27 the registers, and of the proceedings of any meeting as 348.28 furnished by the clerk pro tem, and keep an itemized account of 348.29 all the expenses of the district. The clerk shall furnish to 348.30 the auditor of the proper county,on or beforeby October 10 of 348.31 each year, an attested copy of the clerk's record, showing the 348.32 amount of money voted by the district or the board for school 348.33 purposes; draw and sign all orders upon the treasurer for the 348.34 payment of money for bills allowed by the board for salaries of 348.35 officers and for teachers' wages and all claims, to be 348.36 countersigned by the chair. Such ordersshallmust state the 349.1 consideration, payee, and the fund and the clerk shall take a 349.2 receipt therefor. Teachers' wages shall have preference in the 349.3 order in which they become due, and no money applicable for 349.4 teachers' wages shall be used for any other purpose, nor shall 349.5 teachers' wages be paid from any fund except that raised or 349.6 apportioned for that purpose. 349.7 Sec. 59. Minnesota Statutes 1996, section 123.34, 349.8 subdivision 9, is amended to read: 349.9 Subd. 9. [SUPERINTENDENT.] All districts maintaining a 349.10 classified secondary schoolshallmust employ a superintendent 349.11 who shall be an ex officio nonvoting member of the school board. 349.12 The authority for selection and employment of a superintendent 349.13shallmust be vested in theschoolboard in all cases. An 349.14 individual employed by aschoolboard as a superintendent shall 349.15 have an initial employment contract for a period of time no 349.16 longer than three years from the date of employment. Any 349.17 subsequent employment contract must not exceed a period of three 349.18 years. Aschoolboard, at its discretion, may or may not renew 349.19 an employment contract. Aschoolboardshallmust not, by 349.20 action or inaction, extend the duration of an existing 349.21 employment contract. Beginning 365 days prior to the expiration 349.22 date of an existing employment contract, aschoolboard may 349.23 negotiate and enter into a subsequent employment contract to 349.24 take effect upon the expiration of the existing contract. A 349.25 subsequent contractshallmust be contingent upon the employee 349.26 completing the terms of an existing contract. If a contract 349.27 between aschoolboard and a superintendent is terminated prior 349.28 to the date specified in the contract, theschoolboard may not 349.29 enter into another superintendent contract with that same 349.30 individual that has a term that extends beyond the date 349.31 specified in the terminated contract. Aschoolboard may 349.32 terminate a superintendent during the term of an employment 349.33 contract for any of the grounds specified in section 125.12, 349.34 subdivision 6 or 8. A superintendent shall not rely upon an 349.35 employment contract with aschoolboard to assert any other 349.36 continuing contract rights in the position of superintendent 350.1 under section 125.12. Notwithstanding the provisions of 350.2 sections 122.532, 122.541, 125.12, subdivision 6a or 6b, or any 350.3 other law to the contrary, no individual shall have a right to 350.4 employment as a superintendent based on order of employment in 350.5 any district. If two or moreschooldistricts enter into an 350.6 agreement for the purchase or sharing of the services of a 350.7 superintendent, the contracting districts have the absolute 350.8 right to select one of the individuals employed to serve as 350.9 superintendent in one of the contracting districts and no 350.10 individual has a right to employment as the superintendent to 350.11 provide all or part of the services based on order of employment 350.12 in a contracting district. The superintendent of a district 350.13 shall perform the following: 350.14 (1) visit and supervise the schools in the district, report 350.15 and make recommendations about their condition when advisable or 350.16 on request by the board; 350.17 (2) recommend to the board employment and dismissal of 350.18 teachers; 350.19 (3) superintend school grading practices and examinations 350.20 for promotions; 350.21 (4) make reports required by the commissionerof children,350.22families, and learning; and 350.23 (5) perform other duties prescribed by the board. 350.24 Sec. 60. Minnesota Statutes 1996, section 123.34, 350.25 subdivision 9a, is amended to read: 350.26 Subd. 9a. [DISCLOSE PAST BUYOUTS OR CONTRACT IS VOID.] (a) 350.27 For the purposes of paragraph (b), a "buyout agreement" is any 350.28 agreement under which a person employed as a superintendent left 350.29 the position before the term of the contract was over and 350.30 received a sum of money, something else of value, or the right 350.31 to something of value for some purpose other than performing the 350.32 services of a superintendent. 350.33 (b) Before a person may enter into a superintendent's 350.34 contract with aschoolboard, the candidate shall disclose in 350.35 writing the existence and terms of any previous buyout 350.36 agreement, including amounts and the purpose for the payments, 351.1 relating to a superintendent's contract with anotherschool351.2 board. A disclosure made under this paragraph is public data. 351.3 (c) The superintendent's contract of a person who fails to 351.4 make a timely disclosure under paragraph (b) is void. 351.5 Sec. 61. Minnesota Statutes 1996, section 123.34, 351.6 subdivision 10, is amended to read: 351.7 Subd. 10. [PRINCIPALS.] Each public school building, as 351.8 defined by section 120.05, subdivision 2, clauses (1), (2), and 351.9 (3), in an independentschooldistrict may be under the 351.10 supervision of a principal who is assigned to that 351.11 responsibility by the board of education in thatschooldistrict 351.12 upon the recommendation of the superintendent of schools of that 351.13schooldistrict. If pupils in kindergarten through grade 12 351.14 attend school in one building, one principal may supervise the 351.15 building. 351.16 Each principal assigned the responsibility for the 351.17 supervision of a school building shall hold a valid license in 351.18 the assigned position of supervision and administration as 351.19 established by the rules of the state board of education. 351.20 The principal shall provide administrative, supervisory, 351.21 and instructional leadership services, under the supervision of 351.22 the superintendent of schools of theschooldistrict and in 351.23 accordance with the policies, rules, and regulations of the 351.24 board of education, for the planning, management, operation, and 351.25 evaluation of the education program of the building or buildings 351.26 to which the principal is assigned. 351.27 Sec. 62. Minnesota Statutes 1996, section 123.35, 351.28 subdivision 1, is amended to read: 351.29 Subdivision 1. [BOARD AUTHORITY.] The boardshallmust 351.30 have the general charge of the business of the district, the 351.31 school houses, and of the interests of the schools thereof. The 351.32 board's authority to conduct the business of the district 351.33 includes implied powers in addition to any specific powers 351.34 granted by the legislature. 351.35 Sec. 63. Minnesota Statutes 1996, section 123.35, 351.36 subdivision 2, is amended to read: 352.1 Subd. 2. [FACILITIES FOR SCHOOL-AGE CHILDREN.] Itshall be352.2 is the duty and the function of the district to furnish school 352.3 facilities to every child of school age residing in any part of 352.4 the district. The board may establish and organize and alter 352.5 and discontinue such grades or schools as it may deem advisable 352.6 and assign to each school and grade a proper number of pupils. 352.7 The board shall provide free textbooks for the pupils of the 352.8 district. 352.9 Sec. 64. Minnesota Statutes 1996, section 123.35, 352.10 subdivision 4, is amended to read: 352.11 Subd. 4. [LEVY.] The boardshallmust provide by levy of 352.12 tax necessary funds for the conduct of schools, the payment of 352.13 indebtedness, and all proper expenses of the district. 352.14 Sec. 65. Minnesota Statutes 1996, section 123.35, 352.15 subdivision 9b, is amended to read: 352.16 Subd. 9b. [SERVICES FOR INDIAN STUDENTS.] School districts 352.17 may enter into agreements with Indian tribal governments for 352.18 purposes of providing educational services for students. Such 352.19 agreements may allow for the use of any resources available to 352.20 either party and must give students the option to enroll in 352.21 theschooldistrict at their election. 352.22 Sec. 66. Minnesota Statutes 1996, section 123.35, 352.23 subdivision 12, is amended to read: 352.24 Subd. 12. [ANNUITY CONTRACT; PAYROLL ALLOCATION.] At the 352.25 request of an employee and as part of the employee's 352.26 compensation arrangement, the board may purchase an individual 352.27 annuity contract for an employee for retirement or other 352.28 purposes and may make payroll allocations in accordance with 352.29 such arrangement for the purpose of paying the entire premium 352.30 due and to become due under such contract. The allocationshall352.31 must be made in a manner which will qualify the annuity 352.32 premiums,(or a portion thereof), for the benefit afforded under 352.33 section 403(b) of the current Federal Internal Revenue Code or 352.34 any equivalent provision of subsequent federal income tax law. 352.35 The employee shall own such contract and the employee's 352.36 rightsthereunderunder the contract shall be nonforfeitable 353.1 except for failure to pay premiums. Section 125.12 shall not be 353.2 applicable hereto and the board shall have no liability 353.3 thereunder because of its purchase of any individual annuity 353.4 contracts. This statute shall be applied in a nondiscriminatory 353.5 manner to employees of the school district. 353.6 Sec. 67. Minnesota Statutes 1996, section 123.35, 353.7 subdivision 15, is amended to read: 353.8 Subd. 15. [PAYMENT OF CLAIMS.] When payment of a claim 353.9 cannot be deferred until the next board meeting without loss to 353.10 the district of a discount privilege, or when payment of a claim 353.11 cannot be deferred until the next board meeting because of 353.12 contract terms, purchase order terms, or a vendor's standard 353.13 terms which are part of the contract, the claim may be paid 353.14 prior to board approval, providing that the board: 353.15 (a) Has delegated authority to the clerk or a designated 353.16 business administrator to make a payment prior to board approval 353.17 and 353.18 (b) Requires that payment made prior to board approval be 353.19 acted upon at the next board meeting. 353.20 Payment prior to board approvalshallmust not affect the 353.21 right of the district or a taxpayer to challenge the validity of 353.22 a claim. 353.23 Sec. 68. Minnesota Statutes 1996, section 123.35, 353.24 subdivision 20, is amended to read: 353.25 Subd. 20. [LEGAL COUNSEL; REIMBURSEMENT.] If reimbursement 353.26 is requested by aschooldistrict employee, the board may, after 353.27 consulting with its legal counsel, reimburse the employee for 353.28 any costs and reasonable attorney fees incurred by the person to 353.29 defend criminal charges brought against the person arising out 353.30 of the performance of duties for theschooldistrict. A board 353.31 member who is a witness or an alleged victim in the case may not 353.32 vote on the reimbursement. If a quorum of the board is 353.33 disqualified from voting on the reimbursement, the reimbursement 353.34shallmust be approved by a judge of the district court. 353.35 Sec. 69. Minnesota Statutes 1996, section 123.36, 353.36 subdivision 1, is amended to read: 354.1 Subdivision 1. [SITES.] According to section 124.91, 354.2 subdivision 1, or 465.71, when funds are availabletherefor, the 354.3 board may locate and acquire necessary sites of schoolhouses or 354.4 enlargements, or additions to existing schoolhouse sites by 354.5 lease, purchase or condemnation under the right of eminent 354.6 domain; it may erect schoolhousesthereonon the sites; it may 354.7 erect or purchase garages for district-owned school buses. When 354.8 property is taken by eminent domain by authority of this 354.9 subdivision when needed by theschooldistrict for such 354.10 purposes, the fact that the propertyso neededhas been acquired 354.11 by the owner under the power of eminent domain or is already 354.12 devoted to public use, shall not prevent its acquisition by 354.13 theschooldistrict. The board may sell or exchange 354.14 schoolhouses or sites, and execute deeds of conveyance thereof. 354.15 Sec. 70. Minnesota Statutes 1996, section 123.36, 354.16 subdivision 5, is amended to read: 354.17 Subd. 5. [USE OF SCHOOL HOUSES.] The board may authorize 354.18 the use of any schoolhouses in the district for divine worship, 354.19 Sunday schools, public meetings, elections, post-secondary 354.20 instruction, and other community purposes that, in its judgment, 354.21 will not interfere with their use for school purposes. Before 354.22 permitting any of these uses, the board may require a cash or 354.23 corporate surety bond in a reasonable amount conditioned for the 354.24 proper use of the schoolhouse, payment of all rent, and repair 354.25 of all damageoccasionedcaused by the use. It may determine a 354.26 reasonable charge for using the schoolhouse. 354.27 It may authorize the use of any schoolhouses or buildings 354.28 owned or leased by the district for primaries, elections, 354.29 registrations, and related activities if the board determines 354.30 that the use will not interfere with school purposes. It may 354.31 impose reasonable regulations and conditions upon the use as may 354.32 seem necessary and proper. 354.33 Sec. 71. Minnesota Statutes 1996, section 123.36, 354.34 subdivision 10, is amended to read: 354.35 Subd. 10. [LEASE FOR NONSCHOOL PURPOSE.] (a) The board may 354.36 lease to any person, business, or organization a schoolhouse 355.1 that is not needed for school purposes, or part of a schoolhouse 355.2 that is not needed for school purposes if the board determines 355.3 that leasing part of a schoolhouse does not interfere with the 355.4 educational programs taking place in the rest of the building. 355.5 The board may charge and collect reasonable consideration for 355.6 the lease and may determine the terms and conditions of the 355.7 lease. 355.8 (b) In districts with outstanding bonds, the net proceeds 355.9 of the leaseshallmust be first deposited in the debt 355.10 retirement fund of the district in an amount sufficient to meet 355.11 when due that percentage of the principal and interest payments 355.12 for outstanding bonds that is ascribable to the payment of 355.13 expenses necessary and incidental to the construction or 355.14 purchase of the particular building or property that is leased. 355.15 Any remaining net proceeds in these districts may be deposited 355.16 in either the debt redemption fund or capital expenditure fund. 355.17 All net proceeds of the lease in districts without outstanding 355.18 bonds shall be deposited in the capital expenditure fund of the 355.19 district. 355.20 (c) The board may make capital improvements, including 355.21 fixtures, to a schoolhouse or a portion thereof, not exceeding 355.22 in cost the replacement value of the schoolhouse, to facilitate 355.23 its rental, and the lease of an improved schoolhouse, or part of 355.24 it, shall provide for rentals which will recover the cost of the 355.25 improvements over the initial term of the lease. 355.26 Notwithstanding clause (b), the portion of the rentals 355.27 representing the cost of the improvements shall be deposited in 355.28 the capital expenditure fund of the district and the balance of 355.29 the rentals shall be used as provided in clause (b). 355.30 Sec. 72. Minnesota Statutes 1996, section 123.36, 355.31 subdivision 11, is amended to read: 355.32 Subd. 11. [SCHOOLHOUSE CLOSING.] The board may close a 355.33 schoolhouse only after a public hearing on the question of the 355.34 necessity and practicability of the proposed closing. Published 355.35 notice of the hearing shall be given for two weeks in the 355.36 official newspaper of the district. The time and place of the 356.1 meeting, the description and location of the schoolhouse, and a 356.2 statement of the reasons for the closingshallmust be specified 356.3 in the notice. Parties requesting to give testimony for and 356.4 against the proposal shall be heard by the board before it makes 356.5 a final decision to close or not to close the schoolhouse. 356.6 Sec. 73. Minnesota Statutes 1996, section 123.36, 356.7 subdivision 13, is amended to read: 356.8 Subd. 13. [PROCEEDS OF SALE OR EXCHANGE.] Proceeds of the 356.9 sale or exchange of school buildings or real property of the 356.10schooldistrictshallmust be used as provided in this 356.11 subdivision. 356.12 (a) In districts with outstanding bonds, the proceeds of 356.13 the sale or exchange shall first be deposited in the debt 356.14 retirement fund of the district in an amount sufficient to meet 356.15 when due that percentage of the principal and interest payments 356.16 for outstanding bonds which is ascribable to the payment of 356.17 expenses necessary and incidental to the construction or 356.18 purchase of the particular building or property which is sold. 356.19 (b) After satisfying the requirements of paragraph (a), a 356.20 district with outstanding bonds may deposit proceeds of the sale 356.21 or exchange in its capital expenditure fund if the amount 356.22 deposited is used for the following: 356.23 (1) for expenditures for the cleanup of polychlorinated 356.24 biphenyls, if the method for cleanup is approved by the 356.25 departmentof children, families, and learning; 356.26 (2) for capital expenditures for the betterment, as defined 356.27 in section 475.51, subdivision 8, of district-owned school 356.28 buildings; or 356.29 (3) to replace the building or property sold. 356.30 (c) In a district with outstanding bonds, the amount of the 356.31 proceeds of the sale or exchange remaining after the application 356.32 of paragraphs (a) and (b), which is sufficient to meet when due 356.33 that percentage of the principal and interest payments for the 356.34 district's outstanding bonds which is not governed by paragraph 356.35 (a), shall be deposited in the debt retirement fund. 356.36 (d) Any proceeds of the sale or exchange remaining in 357.1 districts with outstanding bonds after the application of 357.2 paragraphs (a), (b), and (c), and all proceeds of the sale or 357.3 exchange in districts without outstanding bonds shall be 357.4 deposited in the capital expenditure fund of the district. 357.5 (e) Notwithstanding paragraphs (b) and (c), a district with 357.6 outstanding bonds may deposit in its capital expenditure fund 357.7 and use for any lawful capital expenditure without the reduction 357.8 of any levy limitation the same percentage of the proceeds of 357.9 the sale or exchange of a building or property as the percentage 357.10 of the initial cost of purchasing or constructing the building 357.11 or property which was paid using revenue from the capital 357.12 expenditure fund. 357.13 Sec. 74. Minnesota Statutes 1996, section 123.36, 357.14 subdivision 14, is amended to read: 357.15 Subd. 14. [ASBESTOS REMOVAL AND POLYCHLORINATED BIPHENYLS 357.16 CLEANUP.] Notwithstanding any law to the contrary,school357.17 districts may, without an election, enter into contracts 357.18 extending beyond the end of the fiscal year to pay the costs of 357.19 removal or encapsulation of asbestos or cleanup of 357.20 polychlorinated biphenyls found in school buildings or on school 357.21 property. 357.22 Sec. 75. Minnesota Statutes 1996, section 123.37, 357.23 subdivision 1, is amended to read: 357.24 Subdivision 1. [CONTRACTS.]NoA contract for work or 357.25 labor, or for the purchase of furniture, fixtures, or other 357.26 property, except books registered under the copyright laws, or 357.27 for the construction or repair of school houses, the estimated 357.28 cost or value of which shall exceed that specified in section 357.29 471.345, subdivision 3,shallmust not be made by the school 357.30 board without first advertising for bids or proposals by two 357.31 weeks' published notice in the official newspaper. This 357.32 noticeshallmust state the time and place of receiving bids and 357.33 contain a brief description of the subject matter. 357.34 Additional publication in the official newspaper or 357.35 elsewhere may be made as the board shall deem necessary. 357.36 After taking into consideration conformity with the 358.1 specifications, terms of delivery, and other conditions imposed 358.2 in the call for bids, every such contractshallmust be awarded 358.3 to the lowest responsible bidder, be duly executed in writing, 358.4 and be otherwise conditioned as required by law. The person to 358.5 whom the contract is awarded shall give a sufficient bond to the 358.6 board for its faithful performance. Notwithstanding section 358.7 574.26 or any other law to the contrary, on a contract limited 358.8 to the purchase of a finished tangible product, aschoolboard 358.9 may require, at its discretion, a performance bond of a 358.10 contractor in the amount the board considers necessary. A 358.11 recordshallmust be kept of all bids, with names of bidders and 358.12 amount of bids, and with the successful bid indicated thereon. 358.13 A bid containing an alteration or erasure of any price contained 358.14 in the bid which is used in determining the lowest responsible 358.15 bidshallmust be rejected unless the alteration or erasure is 358.16 corrected ashereinprovided in this section. An alteration or 358.17 erasure may be crossed out and the correction thereof printed in 358.18 ink or typewritten adjacent thereto and initialed in ink by the 358.19 person signing the bid. In the case of identical low bids from 358.20 two or more bidders, the board may, at its discretion, utilize 358.21 negotiated procurement methods with the tied low bidders for 358.22 that particular transaction, so long as the price paid does not 358.23 exceed the low tied bid price. In the case where only a single 358.24 bid is received, the board may, at its discretion, negotiate a 358.25 mutually agreeable contract with the bidder so long as the price 358.26 paid does not exceed the original bid. If no satisfactory bid 358.27 is received, the board may readvertise. Standard requirement 358.28 price contracts established for supplies or services to be 358.29 purchased by the districtshallmust be established by 358.30 competitive bids. Such standard requirement price contracts may 358.31 contain escalation clauses and may provide for a negotiated 358.32 price increase or decrease based upon a demonstrable 358.33 industrywide or regional increase or decrease in the vendor's 358.34 costs. Either party to the contract may request that the other 358.35 party demonstrate such increase or decrease. The term of such 358.36 contractsshallmust not exceed two years with an option on the 359.1 part of the district to renew for an additional two years. 359.2Provided that in the case ofContracts for the purchase of 359.3 perishable food items, except milk for school lunches and 359.4 vocational training programsa contract of, in any amount may be 359.5 made by direct negotiation by obtaining two or more written 359.6 quotations for the purchase or sale, when possible, without 359.7 advertising for bids or otherwise complying with the 359.8 requirements of this section or section 471.345, subdivision 3. 359.9 All quotations obtained shall be kept on file for a period of at 359.10 least one year after receiptthereof. 359.11 Every contract made without compliance with the provisions 359.12 of this section shall be void.Provided, thatExcept in the 359.13 case of the destruction of buildings or injury thereto, where 359.14 the public interest would suffer by delay, contracts for repairs 359.15 may be made without advertising for bids. 359.16 Sec. 76. Minnesota Statutes 1996, section 123.37, 359.17 subdivision 1a, is amended to read: 359.18 Subd. 1a. [CONTRACT WITHIN BUDGETED AMOUNTS.] The board 359.19 may authorize its superintendent or business manager to lease, 359.20 purchase, and contract for goods and services within the budget 359.21 as approved by the board, provided that. Any transaction in an 359.22 amount exceeding the minimum amount for which bids are required 359.23 must first be specifically authorized by the board and must 359.24 fulfill all other applicable requirements in subdivision 1. 359.25 Sec. 77. Minnesota Statutes 1996, section 123.37, 359.26 subdivision 1b, is amended to read: 359.27 Subd. 1b. [TRANSPORTATION; FUEL.] Notwithstanding the 359.28 provisions of subdivision 1 or section 471.345, a contract for 359.29 the transportation of school children, or a contract for the 359.30 purchase of petroleum heating fuel or fuel for vehicles may be 359.31 made by direct negotiation, by obtaining two or more written 359.32 quotations for the service when possible, or upon sealed bids. 359.33 At least 30 days before awarding a directly negotiated contract, 359.34 theschooldistrictshallmust, by published notice, request 359.35 quotations for the service to be provided. All quotations 359.36 obtainedshallmust be kept on file for a period of at least one 360.1 year after receiptthereof. If a contract is made by direct 360.2 negotiation, all quotationsshallmust be public information. 360.3 If a contract is made upon sealed bids, the procedure for 360.4 advertising and awarding bids shall conform to the provisions of 360.5 subdivision 1 except as otherwise provided in this subdivision. 360.6 Notwithstanding the provisions of subdivision 1 or section 360.7 574.26, a performance bondshallmust be required of a 360.8 contractor on a contract for the transportation of school 360.9 children only whenand in the amountdeemed necessary by and at 360.10 the discretion of theschoolboard. Such a performance bond 360.11 must be in the amount determined by the board. 360.12 Sec. 78. Minnesota Statutes 1996, section 123.38, 360.13 subdivision 1, is amended to read: 360.14 Subdivision 1. [ACTIVITIES OUTSIDE DISTRICT LIMITS.] 360.15 Whenever itshall appearappears to be beneficial and for the 360.16 best interest of the district and the pupils of the district to 360.17 carry on any school sport activities or educational activities 360.18 connected with their studies outside of the territorial limits 360.19 of theschooldistrict, the board may authorize such activities 360.20 to be conducted under such rules and regulations as the board 360.21 deems sufficient. The district may pay all necessary costs 360.22 therefor including transportation from theschooldistrict funds 360.23 available. 360.24 Sec. 79. Minnesota Statutes 1996, section 123.38, 360.25 subdivision 2, is amended to read: 360.26 Subd. 2. [COCURRICULAR ACTIVITIES AUTHORIZATION.] The 360.27 boardshallmust take charge of and control all cocurricular 360.28 school activities of the teachers and children of the public 360.29 schools in that district held in the school building or school 360.30 grounds or under the supervision or direction of the school 360.31 boardand to that end. The board must adopt rules and 360.32 regulations for the conduct ofthesecocurricular activities in 360.33 which the schools of the district or any class or pupils therein 360.34 may participate. All money received on account of such 360.35 activitiesshallmust be turned over to theschooldistrict 360.36 treasurer, who shall keep the same in the general fund, to be 361.1 disbursed for expenses and salaries connected with the 361.2 activities, or otherwise, by the board upon properly allowed 361.3 itemized claims. 361.4No cocurricular activity shall be participated in by the361.5 Teachers or pupils in the public schools of such district must 361.6 not participate in cocurricular activities, nor shall the school 361.7 name or any allied name be used in connection therewith, except 361.8 by consent and direction of the board. 361.9 Sec. 80. Minnesota Statutes 1996, section 123.38, 361.10 subdivision 2a, is amended to read: 361.11 Subd. 2a. [COCURRICULAR ACTIVITIES.] Cocurricular 361.12 activitiesshall meanmeans school sponsored and directed 361.13 activities designed to provide opportunities for pupils to 361.14 participate, on an individual or group basis, in school and 361.15 public events for the improvement of skills. Cocurricular 361.16 activities are not offered for school credit, cannot be counted 361.17 toward graduation and have one or more of the following 361.18 characteristics: 361.19 (a) They are conducted at regular and uniform times during 361.20 school hours, or at times established by school authorities; 361.21 (b) Although not offered for credit, they are directed or 361.22 supervised by instructional staff in a learning environment 361.23 similar to that found in courses offered for credit; 361.24 (c) They are partially funded by public moneys for general 361.25 instructional purposes under direction and control of the board. 361.26 Sec. 81. Minnesota Statutes 1996, section 123.38, 361.27 subdivision 2b, is amended to read: 361.28 Subd. 2b. [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 361.29 (a) The board may take charge of and control all extracurricular 361.30 activities of the teachers and children of the public schools in 361.31 the district. Extracurricular activitiesshall meanmeans all 361.32 direct and personal services for public school pupils for their 361.33 enjoyment that are managed and operated under the guidance of an 361.34 adult or staff member. 361.35 (b) Extracurricular activities have all of the following 361.36 characteristics: 362.1 (1) they are not offered for school credit nor required for 362.2 graduation; 362.3 (2) they are generally conducted outside school hours, or 362.4 if partly during school hours, at times agreed by the 362.5 participants, and approved by school authorities; 362.6 (3) the content of the activities is determined primarily 362.7 by the pupil participants under the guidance of a staff member 362.8 or other adult. 362.9 (c) If the board does not take charge of and control 362.10 extracurricular activities, these activities shall be 362.11 self-sustaining with all expenses, except direct salary costs 362.12 and indirect costs of the use of school facilities, met by dues, 362.13 admissions, or other student fundraising events. The general 362.14 fundshallmust reflect only those salaries directly related to 362.15 and readily identified with the activity and paid by public 362.16 funds. Other revenues and expenditures for extra curricular 362.17 activities must be recorded according to the "Manual of 362.18 Instruction for Uniform Student Activities Accounting for 362.19 Minnesota School Districts and Area Vocational-Technical 362.20 Colleges." Extracurricular activities not under board control 362.21 must have an annual financial audit and must also be audited 362.22 annually for compliance with this section. 362.23 (d) If the board takes charge of and controls 362.24 extracurricular activities, any or all costs of these activities 362.25 may be provided from school revenues and all revenues and 362.26 expenditures for these activities shall be recorded in the same 362.27 manner as other revenues and expenditures of the district. 362.28 (e) If the board takes charge of and controls 362.29 extracurricular activities,no such activity shall be362.30participated in bythe teachers or pupils in the district must 362.31 not participate in such activity, nor shall the school name or 362.32 any allied name be used in connection therewith, except by 362.33 consent and direction of the board. 362.34 Sec. 82. Minnesota Statutes 1996, section 123.38, 362.35 subdivision 3, is amended to read: 362.36 Subd. 3. [INSURANCE.] The board may enter into a contract 363.1 providing for the payment of cash benefits or the rendering or 363.2 payment of hospital and medical benefits, or both to school 363.3 children injured while participating in activities of the 363.4 school, such. The contracttoentered into by the board may 363.5 make the payment of such benefits or the rendering thereof the 363.6 direct and sole obligation of the association or company 363.7 entering into such contract with the district. 363.8 If the board deems it advisable, it may authorize employees 363.9 to collect fees from the pupils enrolled in said school who are 363.10 to be or are covered by such contract, and to make payment of 363.11 the premium or other charge for such contract or protection. 363.12 The payment of such premium or other charge may be made from 363.13 funds received from the federal government or from the state or 363.14 any governmental subdivision thereof, or from funds derived by a 363.15 tax levy or the issuance of bonds. 363.16 The child's payment of any fees, premium or other chargeby363.17such childshall not thereby make the district liable for any 363.18 injuries incurred from such school activities. 363.19 The state board of education may purchase medical insurance 363.20 coverage for the benefit of students of the Minnesota state 363.21 academy for the deaf or the Minnesota state academy for the 363.22 blind in the same manner and with the same effect as a school 363.23 district board may do for its students under this subdivision. 363.24 Sec. 83. Minnesota Statutes 1996, section 123.39, 363.25 subdivision 1, is amended to read: 363.26 Subdivision 1. [AUTHORITY TO TRANSPORT PUPILS.] The board 363.27 may provide for the transportation of pupils to and from school 363.28 and for any other purpose. The board may also provide for the 363.29 transportation of pupils to schools in other districts for 363.30 grades and departments not maintained in the district, including 363.31 high school, at the expense of the district, when funds are 363.32 available therefor and if agreeable to the district to which it 363.33 is proposed to transport the pupils, for the whole or a part of 363.34 the school year, as it may deem advisable, and subject to its 363.35 rules. In anyschooldistrict, the boardshallmust arrange for 363.36 the attendance of all pupils living two miles or more from the 364.1 school, except pupils whose transportation privileges have been 364.2 revoked under section 123.805, subdivision 1, clause (6), or 364.3 123.7991, paragraph (b), through suitable provision. The 364.4 district may provide for the transportation of orthroughthe 364.5 boarding and rooming of the pupils who may be more economically 364.6 and conveniently provided for by that means. The boardshall364.7 must provide transportation to and from the home of a child with 364.8 a disability not yet enrolled in kindergarten when special 364.9 instruction and services under sections 120.17 and 120.1701 are 364.10 provided in a location other than in the child's home. When 364.11 transportation is provided, scheduling of routes, establishment 364.12 of the location of bus stops, manner and method of 364.13 transportation, control and discipline of school children and 364.14 any other matter relating theretoshallmust be within the sole 364.15 discretion, control, and management of theschoolboard. The 364.16 district may provide for the transportation of pupils or expend 364.17 a reasonable amount for room and board of pupils whose 364.18 attendance at school can more economically and conveniently be 364.19 provided for by that means or who attend school in a building 364.20 rented or leased by a district within the confines of an 364.21 adjacent district. 364.22 Sec. 84. Minnesota Statutes 1996, section 123.39, 364.23 subdivision 2, is amended to read: 364.24 Subd. 2. [TRANSPORTATION SERVICES CONTRACTS.] The board 364.25 may contract for the furnishing of authorized transportation 364.26 under rules established by the commissionerof children,364.27families, and learning, and may purchase gasoline and furnish 364.28 same to a contract carrier for use in the performance of a 364.29 contract with the school district for transportation of school 364.30 children to and from school. 364.31 Sec. 85. Minnesota Statutes 1996, section 123.39, 364.32 subdivision 8, is amended to read: 364.33 Subd. 8. [AUTHORITY TO RENT BUSES.] The board may rent a 364.34 bus owned by theschooldistrict excluding a motor-coach bus to 364.35 any person for any lawful purpose. Bus rentalshallmust not 364.36 interfere with the transportation of pupils by the district. A 365.1 lessee may use and operate the bus without payment of a motor 365.2 vehicle tax. The lessee is liable for any claims for injuries 365.3 and damages arising out of the use and operation of a bus leased 365.4 from the district. Except as provided in subdivision 9a, the 365.5 lessee shall procure insurance at the lessee's expense 365.6 protecting the board and the district against claims for 365.7 injuries and damages arising out of the use and operation of the 365.8 bus. 365.9 Sec. 86. Minnesota Statutes 1996, section 123.39, 365.10 subdivision 8a, is amended to read: 365.11 Subd. 8a. [NONPUPIL TRANSPORTATION; INSURANCE.] 365.12 Notwithstanding the provisions of section 221.021, any public 365.13 school district or school bus contractor providing 365.14 transportation services to aschooldistrict on a regular basis 365.15 in this state may operate school buses, excluding motor coach 365.16 buses, for the purpose of providing transportation to nonpupils 365.17 of the school district attending school events, as defined in 365.18 section 123.38, subdivision 2a or 2b, provided that no carrier 365.19 having a charter carrier permit has its principal office and 365.20 place of business or bus garage within 12 miles of the principal 365.21 office of theschooldistrict.SchoolDistrict owned buses and 365.22 the operators thereof shall otherwise comply with the provisions 365.23 of this section and the rules of the state board of education 365.24 and shall be insured in at least the amounts stated in section 365.25 466.04, subdivision 1. In all cases the total cost of providing 365.26 such services, as determined by sound accounting procedures, 365.27 shall be paid by charges made against those using the buses. 365.28 Sec. 87. Minnesota Statutes 1996, section 123.39, 365.29 subdivision 8b, is amended to read: 365.30 Subd. 8b. [TRANSPORTATION OF ANY PERSON.]SchoolDistricts 365.31 may useschooldistrict owned or contractor operated school 365.32 buses to provide transportation along regular school bus routes 365.33 on a space available basis for any person, provided that this. 365.34 Such use of a busdoesmust not interfere with the 365.35 transportation of pupils to and from school or other authorized 365.36 transportation of pupils. In all cases, the total additional 366.1 cost of providing these services, as determined by sound 366.2 accounting procedures,shallmust be paid by charges made 366.3 against those using these services or some third-party payor. 366.4 In no case shall the additional cost of this transportation be 366.5 paid by theschooldistrict. 366.6 The provisions of section 65B.47, subdivision 4, shall be 366.7 applicable to any person being transported pursuant to this 366.8 subdivision. 366.9 Sec. 88. Minnesota Statutes 1996, section 123.39, 366.10 subdivision 8c, is amended to read: 366.11 Subd. 8c. [PART-TIME SECONDARY STUDENTS.]SchoolDistricts 366.12 may provide bus transportation along regular school bus routes 366.13 on a space available basis for part-time students enrolled in 366.14 secondary classes pursuant to section 123.35, subdivisions 8a, 366.15 8b and 8c, provided that this. Such use of a busdoesmust not 366.16 interfere with the transportation of pupils to and from school 366.17 or other authorized transportation of pupils. The total 366.18 additional cost of providing these services, as determined by 366.19 sound accounting procedures, shall be paid by charges made 366.20 against those using the services or some third-party payor. 366.21 Sec. 89. Minnesota Statutes 1996, section 123.39, 366.22 subdivision 8d, is amended to read: 366.23 Subd. 8d. [EARLY CHILDHOOD FAMILY EDUCATION PARTICIPANTS.] 366.24SchoolDistricts may provide bus transportation along regular 366.25 school bus routes when space is available for participants in 366.26 early childhood family education programs and learning readiness 366.27 programs if these services do not result in an increase in the 366.28 district's expenditures for transportation. The costs allocated 366.29 to these services, as determined by generally accepted 366.30 accounting principles, shall be considered part of the 366.31 authorized cost for regular transportation for the purposes of 366.32 section 124.225. 366.33 Sec. 90. Minnesota Statutes 1996, section 123.39, 366.34 subdivision 8e, is amended to read: 366.35 Subd. 8e. [AREA LEARNING CENTER PUPILS.]SchoolDistricts 366.36 may provide bus transportation along school bus routes 367.1 established to provide nonregular transportation as defined in 367.2 section 124.225, subdivision 1, paragraph (e)(2)(ii), when space 367.3 is available, for pupils attending programs at an area learning 367.4 center. The transportation is only permitted between schools 367.5 and if it does not increase the district's expenditures for 367.6 transportation. The cost of these services shall be considered 367.7 part of the authorized cost for nonregular transportation for 367.8 the purpose of section 124.225. 367.9 Sec. 91. Minnesota Statutes 1996, section 123.39, 367.10 subdivision 9a, is amended to read: 367.11 Subd. 9a. [INSURANCE; INDEMNITY.] If a school board has 367.12 obtained insurance pursuant to subdivision 9 or section 466.06, 367.13 it may also obtain and pay for insurance coverage to indemnify a 367.14 lessee and to protect the board and the district, in any amount 367.15 not exceeding the limits of coverage provided for the insurance 367.16 obtained pursuant to subdivision 9 or section 466.06 against 367.17 claims for injuries and damages arising out of the use and 367.18 operation of a district-owned bus while it is leased or rented 367.19 to the lessee pursuant to subdivision 8. The rental charge 367.20 shall include the cost of this additional insurance coverage. 367.21 The procurement of this additional insurance coverage 367.22 constitutes a waiver of the defense of governmental immunity to 367.23 the extent of the additional coverage but has no effect on the 367.24 liability of the board, theschooldistrict, or its employees 367.25 beyond the coverage so provided. 367.26 Sec. 92. Minnesota Statutes 1996, section 123.39, 367.27 subdivision 11, is amended to read: 367.28 Subd. 11. [INSURANCE; SCHOOL SAFETY PATROL.] The board may 367.29 provide and pay the premiums for insurance against injuries 367.30 resulting to its pupils while assigned to and acting on a school 367.31 safety patrol, which. Such insurance may provide for the 367.32 payment of either cash benefits to such injured pupil or for the 367.33 payment of hospital and medical benefits to or for such injured 367.34 pupil, or both. Nothing herein shall be construed toin any way367.35 make the district liable for such injuries. 367.36 Sec. 93. Minnesota Statutes 1996, section 123.39, 368.1 subdivision 12, is amended to read: 368.2 Subd. 12. [SNOW REMOVAL.] The board may enter into 368.3 contracts for the removal of snow from roads used for regular 368.4 bus routes transporting pupils to and from school either within 368.5 orwithoutoutside the district. 368.6 Sec. 94. Minnesota Statutes 1996, section 123.39, 368.7 subdivision 13, is amended to read: 368.8 Subd. 13. [HANDICAPPED PERSON TRANSPORT TO DEVELOPMENTAL 368.9 ACHIEVEMENT CENTER.] The boardshallmust contract with any 368.10 licensed developmental achievement center attended by a resident 368.11 handicapped person who fulfills the eligibility requirements of 368.12 section 252.23, subdivision 1, to transport the resident 368.13 handicapped person to the developmental achievement center in 368.14 return for payment by the center of the cost of the 368.15 transportation, if transportation by the board is in the best 368.16 interest of the handicapped person and is not unreasonably 368.17 burdensome to the district and if a less expensive, reasonable, 368.18 alternative means of transporting the handicapped person does 368.19 not exist. If the board and the developmental achievement 368.20 center are unable to agree to a contract, either the board or 368.21 the center may appeal to the commissionerof children, families,368.22and learningto resolve the conflict. All decisions of the 368.23 commissioner shall be final and binding upon the board and the 368.24 center. 368.25 Sec. 95. Minnesota Statutes 1996, section 123.39, 368.26 subdivision 14, is amended to read: 368.27 Subd. 14. [CUSTODIAL PARENT TRANSPORTATION.] The board may 368.28 provide transportation for a pupil who is a custodial parent and 368.29 that pupil's child between the pupil's home and a child care 368.30 provider and between the provider and the school. The 368.31 boardshallmust establish criteria for transportation it 368.32 provides according to this subdivision. 368.33 Sec. 96. Minnesota Statutes 1996, section 123.39, 368.34 subdivision 15, is amended to read: 368.35 Subd. 15. [PUPIL TRANSPORT ON STAFF DEVELOPMENT DAYS.] A 368.36schooldistrict may provide bus transportation between home and 369.1 school for pupils on days devoted to parent-teacher conferences, 369.2 teacher's workshops, or other staff development opportunities. 369.3 If approved by the commissioner as part of a program of 369.4 educational improvement, the cost of providing this 369.5 transportation, as determined by generally accepted accounting 369.6 principles, must be considered part of the authorized cost for 369.7 regular transportation for the purposes of section 124.225. The 369.8 commissioner shall approve inclusion of these costs in the 369.9 regular transportation category only if the total number of 369.10 instructional hours in the school year divided by the total 369.11 number of days for which transportation is provided equals or 369.12 exceeds the number of instructional hours per day prescribed in 369.13 the rules of the state board. 369.14 Sec. 97. Minnesota Statutes 1996, section 123.39, 369.15 subdivision 16, is amended to read: 369.16 Subd. 16. [POST-SECONDARY ENROLLMENT OPTIONS PUPILS.] 369.17SchoolDistricts may provide bus transportation along school bus 369.18 routes established to provide nonregular transportation as 369.19 defined in section 124.225, subdivision 1, paragraph (c), clause 369.20 (2), when space is available, for pupils attending programs at a 369.21 post-secondary institution under the post-secondary enrollment 369.22 options program. The transportation is permitted only if it 369.23 does not increase the district's expenditures for 369.24 transportation. Fees collected for this service under section 369.25 120.73, subdivision 1, paragraph (m), shall be subtracted from 369.26 the authorized cost for nonregular transportation for the 369.27 purpose of section 124.225. 369.28 Sec. 98. Minnesota Statutes 1996, section 123.40, 369.29 subdivision 1, is amended to read: 369.30 Subdivision 1. [PAYMENT OF JUST CLAIMS.] The boardshall369.31 must provide for the payment of all just claims against the 369.32 district in cases provided by law. 369.33 Sec. 99. Minnesota Statutes 1996, section 123.40, 369.34 subdivision 2, is amended to read: 369.35 Subd. 2. [PROSECUTE AND DEFEND ACTIONS.] In all proper 369.36 cases, the boardshallmust prosecute and defend actions by or 370.1 against the district. 370.2 Sec. 100. Minnesota Statutes 1996, section 123.40, 370.3 subdivision 8, is amended to read: 370.4 Subd. 8. [REMOVAL OF UNAUTHORIZED VEHICLES.] The board may 370.5 authorize a representative to move unauthorized vehicles parked 370.6 on school district property, or require the driver or other 370.7 person in charge of the vehicle to move the same off school 370.8 district property. 370.9 When such representative finds such a vehicle unattended 370.10 uponschooldistrict premises, such representative is hereby 370.11 authorized to provide for the removal of such vehicle and remove 370.12 the same to the nearest convenient garage or other place of 370.13 safety off ofschooldistrict property. Such vehicle shall be 370.14 moved at the expense of the owner or operator. 370.15 Sec. 101. Minnesota Statutes 1996, section 123.41, is 370.16 amended to read: 370.17 123.41 [LIABILITY INSURANCE,; OFFICERS AND EMPLOYEES.] 370.18 The governing body of any independent school district may 370.19 procure insurance against liability of theschooldistrict or of 370.20 its officers and employees for damages resulting from wrongful 370.21 acts and omissions of theschooldistrict and its officers and 370.22 employees, whether the acts or omissions relate to governmental 370.23 or proprietary functions of theschooldistrict. Insofar as 370.24 this insurance relates to governmental functions of theschool370.25 district, the policy of insurance shall contain a provision 370.26under whichrequiring the insurance companyagreesto waive the 370.27 defense of governmental immunity up to the limits of the policy 370.28 unless theschooldistrict consents to the assertion of that 370.29 defense. 370.30 Sec. 102. Minnesota Statutes 1996, section 123.63, is 370.31 amended to read: 370.32 123.63 [EMINENT DOMAIN.] 370.33 In any municipal corporation or district in this state 370.34 where the governing body or board has the right, power, and 370.35 authority to purchase sites for school buildings without 370.36 authorization by the voters at a regular or special meeting or 371.1 election called for that purpose, such governing body or school 371.2 board shall have the right, power, and authority to condemn 371.3 lands under the right of eminent domain for sites and grounds 371.4 for public school buildingsand. The governing body or board 371.5 shall exercise such power and authorityshall be exercised under371.6andpursuant to the terms and provisions of chapter 117. Any 371.7 such corporation orschooldistrict shall have the right, upon 371.8 the filing of the award of the commissioners provided for in 371.9 chapter 117, and upon giving the notice therein required of the 371.10 filing of such award, to enter upon and appropriate the lands so 371.11 condemned without giving of any bond, but. In case of such 371.12 entry and appropriation, such corporation orschooldistrict 371.13 shall be bound absolutely to pay all damages awarded, either by 371.14 the commissioners or by the court upon appeal therefrom, 371.15 together with all costs and expenses adjudged against it therein 371.16 within the time specified in chapter 117. In case any such 371.17 corporation orschooldistrict shall appeal from the award of 371.18 commissioners appointed pursuant to any such condemnation 371.19 proceedings, such corporation or school district shall not be 371.20 required to give or file any appeal bond therein. 371.21 Sec. 103. Minnesota Statutes 1996, section 123.64, is 371.22 amended to read: 371.23 123.64 [AGRICULTURAL EDUCATION.] 371.24The board ofIn any district in which instruction in 371.25 agriculture is afforded, the board is authorized and empowered 371.26 to purchase or otherwise acquire by condemnation proceedings as 371.27 provided for acquiring schoolhouse sites in the name and in 371.28 behalf of such district, a suitable tract of land either within 371.29 orwithoutoutside of the limits of such district to be used for 371.30 the purpose of instruction, experimentation, and demonstration 371.31 in agriculture. The provisions of this section shall apply as 371.32 well to districts organized under special acts as under the 371.33 general laws, notwithstanding any provisions or restrictions in 371.34 the laws under which thesamedistricts are organized. 371.35 Sec. 104. Minnesota Statutes 1996, section 123.66, is 371.36 amended to read: 372.1 123.66 [RECORDS AS EVIDENCE.] 372.2 The records of all districts and boards and all transcripts 372.3 thereof, or any part thereof, certified by the clerk or other 372.4 officer having custodythereofof the records or transcripts, 372.5 shall be prima facie evidence of the factsthereinstatedandin 372.6 the records or transcripts. All records, books, and papers of 372.7suchthe district or board shall be subject to the inspection of 372.8 any voter of the district. 372.9 Sec. 105. Minnesota Statutes 1996, section 123.681, is 372.10 amended to read: 372.11 123.681 [SALE AT AUCTION.] 372.12 Notwithstanding sections 123.37, subdivision 1, 471.345 or 372.13 any other law, the board of a school district or of a 372.14 cooperative center for vocational education may, in lieu of 372.15 advertising for bids, sell at public auction to the highest 372.16 responsible bidder a building constructed or to be constructed 372.17 by a secondary or post-secondary school student or class as a 372.18 school assignment. A board shall publish notice of a sale at 372.19 least two weeks before the sale in the official newspaper of the 372.20 district, or in the case of a cooperative center, in the 372.21 official newspapers of each of the member districts, and may, at 372.22 its discretion, publish additional notice in the official paper 372.23 or elsewhere. A building may be withdrawn from sale prior to 372.24 the completion of the sale unless the auction has been announced 372.25 to be without reserve. If the sale is made at public auction, a 372.26 duly licensed auctioneershallmust be retained to conduct the 372.27 sale. The auctioneer shall be paid from the proceeds of the 372.28 sale or from any funds available to the board which are not 372.29 otherwise restricted or encumbered. 372.30 Sec. 106. Minnesota Statutes 1996, section 123.71, is 372.31 amended to read: 372.32 123.71 [PUBLICATION OF FINANCIAL INFORMATION.] 372.33 Subdivision 1. [BUDGETS.] By October 1, everyschoolboard 372.34shall, no later than October 1,must publish revenue and 372.35 expenditure budgets for the current year and the actual 372.36 revenues, expenditures, fund balances for the prior year and 373.1 projected fund balances for the current year in a form 373.2 prescribed by the commissioner. The forms prescribedshallmust 373.3 be designed so that year to year comparisons of revenue, 373.4 expenditures and fund balances can be made. These budgets, 373.5 reports of revenue, expenditures and fund balancesshallmust be 373.6 published in a qualified newspaper of general circulation in the 373.7 district. 373.8 Subd. 2. [DEBT SUMMARY.]It shallThe board must also 373.9 publish at the same time a summary of bonds outstanding, paid, 373.10 and sold; a summary of orders not paid for want of funds; 373.11 certificates of indebtedness for the year ending June 30; the 373.12 statutory operating debt of the district as defined and 373.13 certified pursuant to section 121.914; and the balance amount of 373.14 the reserved fund balance reserve account for purposes of 373.15 statutory operating debt reduction established pursuant to 373.16 sections 124.226, 124.2716, 124.91, 124.912, 124.914, 124.916, 373.17 and 124.918. 373.18 Subd. 3. [BUDGET INSPECTION.] A statementshallmust be 373.19 included in the publication that the complete budget in detail 373.20 may be inspected by any resident of the district upon request to 373.21 the chief school administrator. 373.22 Subd. 4. [COST PER PUPIL.]It shallThe board must also 373.23 publish at the same time the average cost per pupil in average 373.24 daily membership educated in that district in the preceding 373.25 year. This computationshallmust be made exclusive of debt 373.26 service or capital outlay costs. 373.27 Sec. 107. Minnesota Statutes 1996, section 123.72, is 373.28 amended to read: 373.29 123.72 [MEDICAL INSURANCE PREMIUMS FOR RETIRED.] 373.30 Theschoolboard of any independent school district may 373.31 expend funds to pay premiums on hospitalization and major 373.32 medical insurance coverage for officers and employees who retire 373.33 prior to age 65. 373.34 Sec. 108. Minnesota Statutes 1996, section 123.75, 373.35 subdivision 2, is amended to read: 373.36 Subd. 2. [AUTHORITY.] Eachschooldistrict may develop a 374.1 fingerprinting program for pupils and children who reside in the 374.2 district. The principal or chief administrative officer of a 374.3 nonpublic school may develop a fingerprinting program for pupils 374.4 of the school. If developed, the program must be developed in 374.5 conjunction with law enforcement agencies having jurisdiction 374.6 within theschooldistrict or the place where the nonpublic 374.7 school is located. The law enforcement agencies must cooperate 374.8 fully with theschooldistrict or the nonpublic school in the 374.9 development of its fingerprinting program. 374.10 Sec. 109. Minnesota Statutes 1996, section 123.75, 374.11 subdivision 3, is amended to read: 374.12 Subd. 3. [LIMITATIONS AND PROCEDURES.] If developed, the 374.13 fingerprinting program may be developed only for the purpose of 374.14 assisting in the location and identification of missing 374.15 children, and must be operated according to the following 374.16 procedures: 374.17 (a) No child may be required to participate in the program. 374.18 (b) Before a child may participate in the program, the 374.19 child's parents, guardian, legal custodian, or other person 374.20 responsible for the child must authorize the child's 374.21 participation by signing a form developed by theschooldistrict 374.22 or the principal or chief administrative officer of the 374.23 nonpublic school. 374.24 (c) Fingerprinting of children must be done by law 374.25 enforcement personnel on fingerprint cards provided to the 374.26schooldistrict or nonpublic school by the commissioner of 374.27 public safety or on fingerprint cards acquired elsewhere. 374.28 (d) The school must give the fingerprint card to the 374.29 child's parents, guardian, legal custodian, or other person 374.30 responsible for the child. No copy of the fingerprint card may 374.31 be retained by the law enforcement agency, school, orschool374.32 district. 374.33 (e) The child's name, sex, hair and eye color, height, 374.34 weight, and date and place of birth must be written on the 374.35 fingerprint card. 374.36SchoolDistricts and nonpublic schools that develop 375.1 fingerprinting programs under this section shall offer them on a 375.2 periodic basis, and shall notify parents, guardians, legal 375.3 custodians, and residents of the district or communities served 375.4 by the school of the program and its purpose. Notification may 375.5 be made by means of memoranda, letters, newspaper articles, or 375.6 other reasonable means. 375.7 Sec. 110. Minnesota Statutes 1996, section 123.75, 375.8 subdivision 5, is amended to read: 375.9 Subd. 5. [OTHER FINGERPRINTING PROGRAMS UNAFFECTED.] This 375.10 section does not apply to fingerprinting programs for children 375.11 that are provided by private organizations other than nonpublic 375.12 schools, or governmental entities other thanschooldistricts. 375.13 Sec. 111. Minnesota Statutes 1996, section 123.751, 375.14 subdivision 1, is amended to read: 375.15 Subdivision 1. [FLAG RECORD UPON CERTAIN NOTIFICATION.] 375.16 Aschooldistrictshallmust flag the record of a pupil who is 375.17 currently or was previously enrolled in the district if a law 375.18 enforcement agency notifies the district of the pupil's 375.19 disappearance. The flag must be made so that, if a copy of or 375.20 information regarding the pupil's record is requested, the 375.21 district is aware that the record is that of a missing pupil. 375.22 Sec. 112. Minnesota Statutes 1996, section 123.751, 375.23 subdivision 2, is amended to read: 375.24 Subd. 2. [DISTRICT NOTIFICATION WHEN RECORDS ARE 375.25 REQUESTED.] When the district provides a copy of the pupil's 375.26 record or other information concerning the pupil whose record is 375.27 flagged, the districtshallmust notify the law enforcement 375.28 agency that notified the district of the pupil's disappearance 375.29 of every inquiry concerning the record. The districtshallmust 375.30 also provide a copy to the law enforcement agency of a written 375.31 request for information concerning the record. 375.32 Sec. 113. Minnesota Statutes 1996, section 123.751, 375.33 subdivision 3, is amended to read: 375.34 Subd. 3. [RECORDS UPON SCHOOL DISTRICT TRANSFER.] When a 375.35 pupil transfers from one district to another, the receiving 375.36 district shall attempt to obtain, within 30 days of the pupil's 376.1 enrollment, the pupil's record from the district from which the 376.2 pupil has transferred. If the pupil's parent, custodian, or 376.3 guardian provides a copy of the pupil's record from the district 376.4 from which the pupil has transferred, the receiving district 376.5shallmust request, within 30 days of the pupil's enrollment, 376.6 written verification of the pupil's record by contacting the 376.7 district named on the transferring pupil's record. Information 376.8 received by aschooldistrict indicating that the transferring 376.9 pupil is a missing child must be reported by the district to the 376.10 department of public safety. 376.11 Sec. 114. Minnesota Statutes 1996, section 124.06, is 376.12 amended to read: 376.13 124.06 [INSUFFICIENT FUNDS TO PAY ORDERS.] 376.14 (a) In the event that a district or a cooperative unit 376.15 defined in section 123.35, subdivision 19b, has insufficient 376.16 funds to pay its usual lawful current obligations, subject to 376.17 section 471.69, the board may enter into agreements with banks 376.18 or any person to take its orders. Any order drawn, after having 376.19 been presented to the treasurer for payment and not paid for 376.20 want of funds shall be endorsed by the treasurer by putting on 376.21 the back thereof the words "not paid for want of funds," giving 376.22 the date of endorsement and signed by the treasurer. A record 376.23 of such presentment, nonpayment and endorsement shall be made by 376.24 the treasurer. The treasurer shall serve a written notice upon 376.25 the payee or the payee's assignee, personally, or by mail, when 376.26 the treasurer is prepared to pay such orders; such. The notice 376.27 may be directed to the payee or the payee's assignee at the 376.28 address given in writing by such payee or assignee to such 376.29 treasurer, at any time prior to the service of such notice. No 376.30 order shall draw any interest if such address is not given when 376.31 the same is unknown to the treasurer, and no order shall draw 376.32 any interest after the service of such notice. 376.33 (b) A district may enter, subject to section 471.69, into a 376.34 line of credit agreement with a financial institution. The 376.35 amount of credit available must not exceed 95 percent of average 376.36 expenditure per month of operating expenditures in the previous 377.1 fiscal year. Any amount advanced must be repaid no later than 377.2 45 days after the day of advancement. 377.3 Sec. 115. Minnesota Statutes 1996, section 124.07, 377.4 subdivision 2, is amended to read: 377.5 Subd. 2. [TITLE TO BE HELD BY DISTRICT.] The district must 377.6 hold title to lands or interests so acquiredshall be held by377.7the district. The district must sell each tract or portion 377.8shall be sold by the districtas soon as there may be realized 377.9 the fair value as determined by such board. Any such sale may 377.10 be authorized by resolution of the board, and may be made for 377.11 cash, or for part cash and the deferred balance secured by 377.12 contract for deed or purchase money mortgage, on such terms as 377.13 the board approves. Conveyances, contracts, or other 377.14 instruments evidencing any sale shall be executed by the chair 377.15 and the clerk of the board. Lands so acquired and held for 377.16 resale shall be deemed public lands used for exclusively public 377.17 purposes and as such shall be exempt from taxation. 377.18 Sec. 116. Minnesota Statutes 1996, section 124.63, is 377.19 amended to read: 377.20 124.63 [NATIONAL FOREST LAND FUNDS, HANDLING AND 377.21 DISPOSITION.] 377.22AnyA county board may place the money, or any part377.23thereof,received by such county from the federal government for 377.24 and on account of any national forest lands situatedthereinin 377.25 the county into a special fund to be disbursed and paid over to 377.26 any districtnow or hereaftermaintaining and operating any 377.27 school wholly or partly within an areanow or hereafter377.28 constituting a part of any auxiliary or state forest.Such377.29action shall be taken byThe boardbymust adopt a resolution 377.30duly adopted by it, whichto take such action. The resolution 377.31shallmust specify the terms and conditions under whichthisthe 377.32 money shall besopaid over and disbursed to any district. 377.33 Sec. 117. Minnesota Statutes 1996, section 126.12, is 377.34 amended to read: 377.35 126.12 [SCHOOL CALENDAR.] 377.36Subdivision 1.Except for learning programs during summer, 378.1 flexible learning year programs authorized under sections 120.59 378.2 to 120.67, and learning year programs under section 121.585, a 378.3schooldistrictshallmust not commence an elementary or 378.4 secondary school year prior to Labor Day. Days which are 378.5 devoted to teachers' workshops may be held before Labor Day. 378.6 Districts that enter into cooperative agreements are encouraged 378.7 to adopt similar school calendars. 378.8 Sec. 118. Minnesota Statutes 1996, section 126.13, is 378.9 amended to read: 378.10 126.13 [CONDUCT OF SCHOOL ON CERTAIN HOLIDAYS.] 378.11 The governing body of any district may contract with any of 378.12 the teachersthereofof the district for the conduct of schools, 378.13 and may conduct schools, on either, or any, of the following 378.14 holidays, provided that a clause to this effect is inserted in 378.15 the teacher's contract: Martin Luther King's birthday, 378.16 Lincoln's and Washington's birthdays, Columbus Day and Veterans' 378.17 Day, provided that. On Martin Luther King's birthday, 378.18 Washington's birthday, Lincoln's birthday, and Veterans' Day at 378.19 least one hour of the school program must be devoted to a 378.20 patriotic observance of the day. 378.21 Sec. 119. Minnesota Statutes 1996, section 126.69, 378.22 subdivision 1, is amended to read: 378.23 Subdivision 1. [PROGRAM GOALS.] The departmentof378.24children, families, and learning, in consultation with the state 378.25 curriculum advisory committee, must develop guidelines and model 378.26 plans for parental involvement programs that will: 378.27 (1) engage the interests and talents of parents or 378.28 guardians in recognizing and meeting the emotional, 378.29 intellectual, and physical needs of their school-age children; 378.30 (2) promote healthy self-concepts among parents or 378.31 guardians and other family members; 378.32 (3) offer parents or guardians a chance to share and learn 378.33 about educational skills, techniques, and ideas; 378.34 (4) provide creative learning experiences for parents or 378.35 guardians and their school-age children, including involvement 378.36 from parents or guardians of color; 379.1 (5) encourage parents to actively participate in their 379.2 district's curriculum advisory committee under section 126.666 379.3 in order to assist the school board in improving children's 379.4 education programs; and 379.5 (6) encourage parents to help in promoting school 379.6 desegregation/integration. 379.7 Sec. 120. Minnesota Statutes 1996, section 127.02, is 379.8 amended to read: 379.9 127.02 [ACTIONS BY DISTRICTS.] 379.10 Anyschoolboard may prosecute actions in the name of the 379.11 district in the following cases: 379.12 (1) On a contract made with the district, or with the board 379.13 in its official capacity; 379.14 (2) To enforce a liability, or a duty enjoined by law, in 379.15 its favor or in favor of the district; 379.16 (3) To recover a penalty or forfeiture given by law to it 379.17 or to the district; or 379.18 (4) To recover damages for an injury to the rights or 379.19 property of the district. 379.20 Sec. 121. Minnesota Statutes 1996, section 127.03, is 379.21 amended to read: 379.22 127.03 [ACTIONS AGAINST DISTRICTS AND TEACHERS.] 379.23Subdivision 1.(a) An action may be brought against any 379.24schooldistrict, either upon a contract made with the district 379.25 or its board, in its official capacity and within the scope of 379.26 its authority, or for an injury to the rights of the plaintiff 379.27 arising from some act or omission of such board, whether. The 379.28 action may be brought against the district even if the members 379.29 of the board making the contract, or guilty of the act or 379.30 omission complained of,be stillare no longer in officeor not. 379.31Subd. 2.(b) Upon written request of the teacher involved, 379.32 anyschooldistrict, however organized,shallmust provide legal 379.33 counsel for any school teacher against whom claim is made or 379.34 action is brought for recovery of damages in any tort action 379.35 involving physical injury to any person or property or for 379.36 wrongful death arising out of or in connection with the 380.1 employment of such teacher withsuch schoolthe district. The 380.2 choice ofsuchlegal counsel shall be made only after 380.3 consultation with the teacher. Provision of counsel under 380.4 thissubdivisionparagraph shall not be construed to render 380.5 theschooldistrict liable for its torts, except as otherwise 380.6 provided by law; or for reimbursement of costs of counsel 380.7 provided to the teacher pursuant to the contract obligation of 380.8 another or otherwise than under thissubdivisionparagraph; or 380.9 for payment of any judgments or any other costs or disbursements 380.10 in connectiontherewithwith a judgment where the judgment, cost 380.11 or disbursement is against the teacher and not against the 380.12 school district. 380.13Subd. 3. [IMMUNITY FROM CIVIL LIABILITY.](c) It is a 380.14 defense to a civil action for damages against a school official, 380.15 as defined in section 609.2231, subdivision 5, to prove that the 380.16 force used by the official was reasonable, was in the exercise 380.17 of lawful authority, and was necessary under the circumstances 380.18 to restrain the pupil or to prevent bodily harm or death to 380.19 another. 380.20 Sec. 122. Minnesota Statutes 1996, section 127.04, is 380.21 amended to read: 380.22 127.04 [JUDGMENT PAID BY TREASURER.] 380.23 Except ashereinafterprovided in this section, no 380.24 execution shall issue upon any judgment against aschool380.25 district for the recovery of money. Unless thesame bejudgment 380.26 is stayed by appeal, the treasurer shall pay such judgment, upon 380.27 presentation of a certified copythereofof the judgment, 380.28 ifthere isthe district has sufficient moneyof the district380.29 not otherwise appropriated. A treasurer who fails todo sopay 380.30 the judgment shall be personally liable for the amount, unless 380.31 the collectionbe afterwardsis stayed afterwards. 380.32 Sec. 123. [REPEALER.] 380.33 Minnesota Statutes 1996, section 123.35, subdivision 10, is 380.34 repealed. 380.35 Sec. 124. [INSTRUCTION TO REVISOR.] 380.36 The revisor of statutes shall renumber each section of 381.1 Minnesota Statutes listed in column A with the number listed in 381.2 column B. The revisor shall also make necessary cross-reference 381.3 changes consistent with the renumbering. 381.4 Column A Column B 381.5 123.01 123A.01 381.6 123.66 123A.02 381.7 123.11 123A.03 381.8 123.12, subd. 1 123A.04, subd. 1 381.9 subd. 2 subd. 2 381.10 subd. 9 subd. 3 381.11 subd. 14 subd. 4 381.12 123.13, subd. 2 123A.05 381.13 123.15 123A.06 381.14 123.21 123A.07 381.15 123.33, subd. 1 123A.08, subd. 1 381.16 subd. 2 subd. 2 381.17 subd. 2a subd. 3 381.18 subd. 3 subd. 4 381.19 subd. 4 subd. 5 381.20 subd. 5 subd. 6 381.21 subd. 6 subd. 7 381.22 subd. 7 subd. 8 381.23 subd. 8 subd. 9 381.24 subd. 11 subd. 10 381.25 subd. 11a subd. 11 381.26 subd. 12 subd. 12 381.27 123.71 123A.09 381.28 123.335 123A.10 381.29 124.06 123A.11 381.30 124.07 123A.12 381.31 123.34, subd. 1 123A.13, subd. 1 381.32 subd. 2 subd. 2 381.33 subd. 3 subd. 3 381.34 subd. 4 subd. 4 381.35 subd. 5 subd. 5 381.36 subd. 7 subd. 6 382.1 subd. 8 subd. 7 382.2 subd. 9 subd. 8 382.3 subd. 9a subd. 9 382.4 subd. 10 subd. 10 382.5 127.08 123A.14 382.6 127.09 123A.15 382.7 127.10 123A.16 382.8 127.11 123A.17 382.9 127.12 123A.18 382.10 127.13 123A.19 382.11 127.15 123A.20 382.12 127.16 123A.21 382.13 127.21 123A.22 382.14 127.23 123A.23 382.15 123.35, subd. 1 123A.24, subd. 1 382.16 subd. 2 subd. 2 382.17 subd. 3 subd. 6 382.18 subd. 4 subd. 7 382.19 subd. 6 subd. 13 382.20 subd. 7 subd. 8 382.21 subd. 9a subd. 9 382.22 subd. 9b subd. 10 382.23 subd. 11 subd. 12 382.24 subd. 12 subd. 14 382.25 subd. 15 subd. 17 382.26 subd. 18 subd. 11 382.27 subd. 19c subd. 3 382.28 subd. 20 subd. 19 382.29 123.72 123A.24, subd. 15 382.30 123.40, subd. 1 123A.24, subd. 16 382.31 subd. 2 subd. 18 382.32 subd. 3 subd. 5 382.33 subd. 8 subd. 4 382.34 123.41 123A.25 382.35 120.1045, subd. 1 123A.26, subd. 1 382.36 subd. 2 subd. 2 383.1 subd. 4 subd. 3 383.2 123.36, subd. 1 123A.27, subd. 1 383.3 subd. 5 subd. 2 383.4 subd. 7 subd. 3 383.5 subd. 10 subd. 4 383.6 subd. 11 subd. 5 383.7 subd. 13 subd. 6 383.8 subd. 14 subd. 7 383.9 subd. 15 subd. 8 383.10 123.37, subd. 1 123A.28, subd. 1 383.11 subd. 1a subd. 2 383.12 subd. 1b subd. 3 383.13 subd. 2 subd. 4 383.14 123.681 123A.29 383.15 123.38, subd. 1 123A.31, subd. 1 383.16 subd. 2 subd. 2 383.17 subd. 2a subd. 3 383.18 subd. 2b subd. 4 383.19 subd. 3 subd. 5 383.20 subd. 4 subd. 6 383.21 123.39, subd. 1 123A.33, subd. 1 383.22 subd. 2 subd. 2 383.23 subd. 4 subd. 3 383.24 subd. 5 subd. 4 383.25 subd. 6 subd. 5 383.26 subd. 7 subd. 6 383.27 subd. 8 subd. 7 383.28 subd. 8a subd. 8 383.29 subd. 8b subd. 9 383.30 subd. 8c subd. 10 383.31 subd. 8d subd. 11 383.32 subd. 8e subd. 12 383.33 subd. 9 subd. 13 383.34 subd. 9a subd. 14 383.35 subd. 10 subd. 15 383.36 subd. 11 subd. 16 384.1 subd. 12 subd. 17 384.2 subd. 13 subd. 18 384.3 subd. 14 subd. 19 384.4 subd. 15 subd. 20 384.5 subd. 16 subd. 21 384.6 127.02 123A.35 384.7 127.03 123A.36 384.8 127.04 123A.37 384.9 127.06 123A.38 384.10 126.12 123A.41 384.11 120.1015 123A.42 384.12 126.13 123A.43 384.13 120.59 123A.45 384.14 120.60 123A.46 384.15 120.61 123A.47 384.16 120.62 123A.48 384.17 120.63 123A.49 384.18 120.64 123A.50 384.19 120.66 123A.51 384.20 120.67 123A.52 384.21 121.585, subd. 1 123A.53, subd. 1 384.22 subd. 2 subd. 2 384.23 subd. 4 subd. 3 384.24 subd. 5 subd. 4 384.25 subd. 6 subd. 5 384.26 subd. 7 subd. 6 384.27 subd. 8 subd. 7 384.28 123.951 123A.55 384.29 124C.77 123A.57 384.30 126.69 123A.60 384.31 126.699 123A.61 384.32 123.97 123A.63 384.33 123.972 123A.64 384.34 123.51 123A.70 384.35 123.62 123A.72 384.36 123.63 123A.73 385.1 123.64 123A.74 385.2 124.63 123A.75 385.3 123.75 123A.80 385.4 123.751 123A.81 385.5 121.904, subd. 1 123A.85, subd. 1 385.6 subd. 2 subd. 2 385.7 subd. 3 subd. 3 385.8 subd. 4 subd. 4 385.9 subd. 4a subd. 5 385.10 subd. 4c subd. 6 385.11 subd. 11 subd. 7 385.12 subd. 12 subd. 8 385.13 subd. 13 subd. 9 385.14 subd. 14 subd. 10 385.15 121.906 123A.86 385.16 121.908, subd. 1 123A.87, subd. 1 385.17 subd. 2 subd. 2 385.18 subd. 3 subd. 3 385.19 subd. 3a subd. 4 385.20 subd. 5 subd. 5 385.21 subd. 6 subd. 6 385.22 121.911 123A.90 385.23 121.912, subd. 1 123A.91, subd. 1 385.24 subd. 1a subd. 2 385.25 subd. 1b subd. 3 385.26 subd. 2 subd. 4 385.27 subd. 3 subd. 5 385.28 subd. 4 subd. 6 385.29 subd. 5 subd. 7 385.30 subd. 6 subd. 8 385.31 121.9121, subd. 1 123A.92, subd. 1 385.32 subd. 2 subd. 2 385.33 subd. 4 subd. 3 385.34 121.914 123A.93 385.35 121.915 123A.94 385.36 121.917 123A.95 386.1 ARTICLE 7 386.2 CHAPTER 124D 386.3 BASIC EDUCATION FUNDING 386.4 Section 1. Minnesota Statutes 1996, section 123.76, is 386.5 amended to read: 386.6 123.76 [POLICY.] 386.7 In districts where the state provides aids for 386.8 transportation it is in the public interest to provide equality 386.9 of treatment in transporting school children of the state who 386.10 are required to attend elementary and secondary schools pursuant 386.11 to chapter 120, so that the health, welfare and safety ofsuch386.12 the children, while using the public highways of the state, 386.13 shall be protected. 386.14 School children attending any schools, complying with 386.15 section 120.101, are therefore entitled to the same rights and 386.16 privileges relating to transportation. 386.17 Sec. 2. Minnesota Statutes 1996, section 123.78, 386.18 subdivision 1a, is amended to read: 386.19 Subd. 1a. [NONPUBLIC SCHOOL STUDENTS.] (a) Theschool386.20 board of any local districtshallmust provide school bus 386.21 transportation to the district boundary for school children 386.22 residing in the district at least the same distance from a 386.23 nonpublic school actually attended in another district as public 386.24 school pupils are transported in the transporting district,. 386.25 Such transportation must be provided whether or not there is 386.26 another nonpublic school within the transporting district, if 386.27 the transportation is to schools maintaining grades or 386.28 departments not maintained in the district or if the attendance 386.29 of such children at school can more safely, economically, or 386.30 conveniently be provided for by such means. 386.31 (b) The school board of any local district may provide 386.32 school bus transportation to a nonpublic school in another 386.33 district for school children residing in the district and 386.34 attending that school, whether or not there is another nonpublic 386.35 school within the transporting district, if the transportation 386.36 is to schools maintaining grades or departments not maintained 387.1 in the district or if the attendance of such children at school 387.2 can more safely, economically, or conveniently be provided for 387.3 by such means. If the board transports children to a nonpublic 387.4 school located in another district, the nonpublic schoolshall387.5 must pay the cost of such transportation provided outside the 387.6 district boundaries. 387.7 Sec. 3. Minnesota Statutes 1996, section 123.78, 387.8 subdivision 2, is amended to read: 387.9 Subd. 2. [BOARD CONTROL.] When transportation is provided, 387.10 the scheduling of routes, manner and method of transportation, 387.11 control and discipline of school children and any other matter 387.12 relating thereto shall be within the sole discretion, control 387.13 and management of theschoolboard. 387.14 Sec. 4. Minnesota Statutes 1996, section 123.79, 387.15 subdivision 1, is amended to read: 387.16 Subdivision 1. [STATE AID.]SuchState aidsas aremade 387.17 available or appropriated shall be for the equal benefit of all 387.18 school children, and be disbursed in such manner as determined 387.19 by the board. 387.20 Sec. 5. Minnesota Statutes 1996, section 123.799, as 387.21 amended by Laws 1997, First Special Session chapter 4, article 387.22 12, section 2, is amended to read: 387.23 123.799 [STUDENT TRANSPORTATION SAFETY.] 387.24 Subdivision 1. [RESERVED REVENUE USE.] A districtshall387.25 must use the student transportation safety reserved revenue 387.26 under section 124.225, subdivision 7f, for providing student 387.27 transportation safety programs to enhance student conduct and 387.28 safety on the bus or when boarding and exiting the bus. A 387.29 district's student transportation policy must specify the 387.30 student transportation safety activities to be carried out under 387.31 this section. A district's student transportation safety 387.32 reserved revenue may only be used for the following purposes: 387.33 (1) to provide paid adult bus monitors, including training 387.34 and salary costs; 387.35 (2) to provide a volunteer bus monitor program, including 387.36 training costs and the cost of a program coordinator; 388.1 (3) to purchase or lease optional external public address 388.2 systems or video recording cameras for use on buses; 388.3 (4) to purchase new or retrofit existing school buses with 388.4 seatbelts or other occupant restraint systems after consultation 388.5 with and approval by the commissioner of public safety; and 388.6 (5) other activities or equipment that have been approved 388.7 by the commissioner of public safety. 388.8 Subd. 2. [REPORTING.] Districtsshallmust annually report 388.9 expenditures from the student transportation safety reserved 388.10 revenue to the commissionerof children, families, and learning,388.11 who shall provide the information to the school bus safety 388.12 advisory committee. 388.13 Sec. 6. Minnesota Statutes 1997 Supplement, section 388.14 123.7991, subdivision 2, is amended to read: 388.15 Subd. 2. [STUDENT TRAINING.] (a) Eachschooldistrict 388.16shallmust provide public school pupils enrolled in grades 388.17 kindergarten through 10 with age-appropriate school bus safety 388.18 training. The trainingshallmust be results-oriented and shall 388.19 consist of both classroom instruction and practical training 388.20 using a school bus. Upon completing the training, a student 388.21 shall be able to demonstrate knowledge and understanding of at 388.22 least the following competencies and concepts: 388.23 (1) transportation by school bus is a privilege and not a 388.24 right; 388.25 (2) district policies for student conduct and school bus 388.26 safety; 388.27 (3) appropriate conduct while on the school bus; 388.28 (4) the danger zones surrounding a school bus; 388.29 (5) procedures for safely boarding and leaving a school 388.30 bus; 388.31 (6) procedures for safe street or road crossing; and 388.32 (7) school bus evacuation and other emergency procedures. 388.33 (b) Each nonpublic school located within the districtshall388.34 must provide all nonpublic school pupils enrolled in grades 388.35 kindergarten through 10 who are transported by school bus at 388.36 public expense and attend school within the district's 389.1 boundaries with training as required in paragraph (a). The 389.2 school district shall make a bus available for the practical 389.3 training if the district transports the nonpublic students. 389.4 Each nonpublic school shall provide the instruction. 389.5 (c) All students enrolled in grades kindergarten through 3 389.6 who are transported by school bus and are enrolled during the 389.7 first or second week of school must demonstrate achievement of 389.8 the school bus safety training competencies by the end of the 389.9 third week of school. All students enrolled in grades 4 through 389.10 10 who are transported by school bus and are enrolled during the 389.11 first or second week of school must demonstrate achievement of 389.12 the competencies by the end of the sixth week of school. 389.13 Students enrolled in grades kindergarten through 10 who enroll 389.14 in a school after the second week of school and are transported 389.15 by school bus shall undergo school bus safety training and 389.16 demonstrate achievement of the school bus safety competencies 389.17 within four weeks of the first day of attendance. The pupil 389.18 transportation safety director in each district must certify to 389.19 the commissionerof children, families, and learningannually 389.20 that all students transported by school bus within the district 389.21 have satisfactorily demonstrated knowledge and understanding of 389.22 the school bus safety competencies according to this section or 389.23 provide an explanation for a student's failure to demonstrate 389.24 the competencies. The principal or other chief administrator of 389.25 each nonpublic school must certify annually to the public 389.26 transportation safety director of the district in which the 389.27 school is located that all of the school's students transported 389.28 by school bus at public expense have received training. A 389.29schooldistrict may deny transportation to a student who fails 389.30 to demonstrate the competencies, unless the student is unable to 389.31 achieve the competencies due to a disability, or to a student 389.32 who attends a nonpublic school that fails to provide training as 389.33 required by this subdivision. 389.34 (d) Aschooldistrict and a nonpublic school with students 389.35 transported by school bus at public expense must, to the extent 389.36 possible, provide kindergarten pupils with bus safety training 390.1 before the first day of school. 390.2 (e) Aschooldistrict and a nonpublic school with students 390.3 transported by school bus at public expense must also provide 390.4 student safety education for bicycling and pedestrian safety, 390.5 for students enrolled in grades kindergarten through 5. 390.6 (f) Aschooldistrict and a nonpublic school with students 390.7 transported by school bus at public expense must make reasonable 390.8 accommodations for the school bus, bicycle, and pedestrian 390.9 safety training of pupils known to speak English as a second 390.10 language and pupils with disabilities. 390.11 Sec. 7. Minnesota Statutes 1996, section 123.7991, 390.12 subdivision 3, is amended to read: 390.13 Subd. 3. [MODEL TRAINING PROGRAM.] The commissionerof390.14children, families, and learningshall develop a comprehensive 390.15 model school bus safety training program for pupils who ride the 390.16 bus that includes bus safety curriculum for both classroom and 390.17 practical instruction, methods for assessing attainment of 390.18 school bus safety competencies, and age-appropriate 390.19 instructional materials. The program must be adaptable for use 390.20 by students with disabilities. 390.21 Sec. 8. Minnesota Statutes 1996, section 123.801, is 390.22 amended to read: 390.23 123.801 [BUS TRANSPORTATION A PRIVILEGE NOT A RIGHT.] 390.24 Transportation by school bus is a privilege not a right for 390.25 an eligible student. A student's eligibility to ride a school 390.26 bus may be revoked for a violation of school bus safety or 390.27 conduct policies, or for violation of any other law governing 390.28 student conduct on a school bus, pursuant to a written school 390.29 district discipline policy. Revocation of a student's bus 390.30 riding privilege is not an exclusion, expulsion, or suspension 390.31 under the pupil fair dismissal actof 1974. Revocation 390.32 procedures for a student who is an individual with a disability 390.33 under the Individuals with Disabilities Education Act, United 390.34 States Code, title 20, section 1400 et seq., section 504 of the 390.35 Rehabilitation Act of 1973, United States Code, title 29, 390.36 section 794, and the Americans with Disabilities Act, Public Law 391.1 Number 101-336, are governed by these provisions. 391.2 Sec. 9. Minnesota Statutes 1996, section 123.805, is 391.3 amended to read: 391.4 123.805 [SCHOOL DISTRICT BUS SAFETY RESPONSIBILITIES.] 391.5 Subdivision 1. [COMPREHENSIVE POLICY.] Eachschool391.6 districtshallmust develop and implement a comprehensive, 391.7 written policy governing pupil transportation safety, including 391.8 transportation of nonpublic school students, when applicable. 391.9 The policy shall, at minimum, contain: 391.10 (1) provisions for appropriate student bus safety training 391.11 under section 123.7991; 391.12 (2) rules governing student conduct on school buses and in 391.13 school bus loading and unloading areas; 391.14 (3) a statement of parent or guardian responsibilities 391.15 relating to school bus safety; 391.16 (4) provisions for notifying students and parents or 391.17 guardians of their responsibilities and the rules; 391.18 (5) an intradistrict system for reporting school bus 391.19 accidents or misconduct, a system for dealing with local law 391.20 enforcement officials in cases of criminal conduct on a school 391.21 bus, and a system for reporting accidents, crimes, incidents of 391.22 misconduct, and bus driver dismissals to the department of 391.23 public safety under section 169.452; 391.24 (6) a discipline policy to address violations of school bus 391.25 safety rules, including procedures for revoking a student's bus 391.26 riding privileges in cases of serious or repeated misconduct; 391.27 (7) a system for integrating school bus misconduct records 391.28 with other discipline records; 391.29 (8) a statement of bus driver duties; 391.30 (9) planned expenditures for safety activities under 391.31 section 123.799 and, where applicable, provisions governing bus 391.32 monitor qualifications, training, and duties; 391.33 (10) rules governing the use and maintenance of type III 391.34 vehicles, drivers of type III vehicles, qualifications to drive 391.35 a type III vehicle, qualifications for a type III vehicle and 391.36 the circumstances under which a student may be transported in a 392.1 type III vehicle; 392.2 (11) operating rules and procedures; 392.3 (12) provisions for annual bus driver in-service training 392.4 and evaluation; 392.5 (13) emergency procedures; 392.6 (14) a system for maintaining and inspecting equipment; 392.7 (15) requirements of the school district, if any, that 392.8 exceed state law minimum requirements for school bus operations; 392.9 and 392.10 (16) requirements for basic first aid training, whichshall392.11 must include the Heimlich maneuver and procedures for dealing 392.12 with obstructed airways, shock, bleeding, and seizures. 392.13SchoolDistricts are encouraged to use the model policy 392.14 developed by the Minnesota school boards association, the 392.15 department of public safety, and the department of children, 392.16 families, and learning, as well as the current edition of the 392.17 "National Standards for School Buses and Operations" published 392.18 by the National Safety Council, in developing safety policies. 392.19Each district shall submit a copy of its policy under this392.20subdivision to the school bus safety advisory committee no later392.21than August 1, 1994.Each district shall review its policy 392.22 annually and make appropriate amendments, which must be 392.23 submitted to the school bus safety advisory committee within one 392.24 month of approval by the school board. 392.25 Subd. 2. [SCHOOL TRANSPORTATION SAFETY DIRECTOR.] Each 392.26schoolboard shall designate a school transportation safety 392.27 director to oversee and implement pupil transportation safety 392.28 policies. The director shall have day-to-day responsibility for 392.29 pupil transportation safety within the district, including 392.30 transportation of nonpublic school children when provided by the 392.31 district. 392.32 Sec. 10. Minnesota Statutes 1996, section 123.932, 392.33 subdivision 1b, is amended to read: 392.34 Subd. 1b. [TEXTBOOK.] "Textbook" means any book or book 392.35 substitute which a pupil uses as a text or text substitute in a 392.36 particular class or program in the school regularly attended and 393.1 a copy of which is expected to be available for the individual 393.2 use of each pupil in this class or program, which book or book393.3substitute or text or text substitute. The term shall be 393.4 limited to books, workbooks, or manuals, whether bound or in 393.5 loose-leaf form, intended for use as a principal source of study 393.6 material for a given class or a group of students. The term 393.7 includes only such secular, neutral and nonideological textbooks 393.8 as are available, used by, or of benefit to Minnesota public 393.9 school pupils. 393.10 Sec. 11. Minnesota Statutes 1996, section 123.933, is 393.11 amended to read: 393.12 123.933 [TEXTBOOKS,; INDIVIDUAL INSTRUCTION OR COOPERATIVE 393.13 LEARNING MATERIAL,; STANDARD TESTS.] 393.14 Subdivision 1. [PROVISION.] The state board of education 393.15 shall promulgate rules under the provisions of chapter 14 393.16 requiring that in each school year, based upon formal requests 393.17 by or on behalf of nonpublic school pupils in a nonpublic 393.18 school, the local districts or intermediary service areasshall393.19 must purchase or otherwise acquire textbooks, individualized 393.20 instructional or cooperative learning materials, and 393.21 standardized tests and loan or provide them for use by children 393.22 enrolled in that nonpublic school. These textbooks, 393.23 individualized instructional or cooperative learning materials, 393.24 and standardized testsshallmust be loaned or provided free to 393.25 the children for the school year for which requested. The loan 393.26 or provision of the textbooks, individualized instructional or 393.27 cooperative learning materials, and standardized tests shall be 393.28 subject to rules prescribed by the state board of education. 393.29 Subd. 2. [TITLE.] The title to textbooks, individualized 393.30 instructional or cooperative learning materials, and 393.31 standardized testing materialsshallmust remain in the 393.32 servicing school district or intermediary service area, and 393.33 possession or custody may be granted or charged to 393.34 administrators of the nonpublic school attended by the nonpublic 393.35 school pupil or pupils to whom the textbooks, individualized 393.36 instructional or cooperative learning materials, or standardized 394.1 tests are loaned or provided. 394.2 Subd. 3. [COST; LIMITATION.] (a) The cost per pupil of the 394.3 textbooks, individualized instructional or cooperative learning 394.4 materials, and standardized tests provided for in this section 394.5 for each school yearshallmust not exceed the statewide average 394.6 expenditure per pupil, adjusted pursuant to clause (b), by the 394.7 Minnesota public elementary and secondary schools for textbooks, 394.8 individualized instructional materials and standardized tests as 394.9 computed and established by the departmentof children,394.10families, and learningby March 1 of the preceding school year 394.11 from the most recent public school year data then available. 394.12 (b) The cost computed in clause (a) shall be increased by 394.13 an inflation adjustment equal to the percent of increase in the 394.14 formula allowance, pursuant to section 124A.22, subdivision 2, 394.15 from the second preceding school year to the current school year. 394.16 (c) The commissioner shall allot to theschooldistricts or 394.17 intermediary service areas the total cost for each school year 394.18 of providing or loaning the textbooks, individualized 394.19 instructional or cooperative learning materials, and 394.20 standardized tests for the pupils in each nonpublic school. The 394.21 allotment shall not exceed the product of the statewide average 394.22 expenditure per pupil, according to clause (a), adjusted 394.23 pursuant to clause (b), multiplied by the number of nonpublic 394.24 school pupils who make requests pursuant to this section and who 394.25 are enrolled as of September 15 of the current school year. 394.26 Sec. 12. Minnesota Statutes 1996, section 123.935, 394.27 subdivision 1, is amended to read: 394.28 Subdivision 1. [PROVIDED SERVICES.] The state board of 394.29 education shall promulgate rules under the provisions of chapter 394.30 14 requiring eachschooldistrict or other intermediary service 394.31 area: (a) to provide each year upon formal request by a 394.32 specific date by or on behalf of a nonpublic school pupil 394.33 enrolled in a nonpublic school located in that district or area, 394.34 the same specific health services as are provided for public 394.35 school pupils by the district where the nonpublic school is 394.36 located; and (b) to provide each year upon formal request by a 395.1 specific date by or on behalf of a nonpublic school secondary 395.2 pupil enrolled in a nonpublic school located in that district or 395.3 area, the same specific guidance and counseling services as are 395.4 provided for public school secondary pupils by the district 395.5 where the nonpublic school is located. The district where the 395.6 nonpublic school is locatedshallmust provide the necessary 395.7 transportation within the district boundaries between the 395.8 nonpublic school and a public school or neutral site for 395.9 nonpublic school pupils who are provided pupil support services 395.10 pursuant to this section. Each request for pupil support 395.11 servicesshallmust set forth the guidance and counseling or 395.12 health services requested by or on behalf of all eligible 395.13 nonpublic school pupils enrolled in a given nonpublic school. 395.14 No district or intermediary service areashallmust not expend 395.15 an amount for these pupil support services which exceeds the 395.16 amount allotted to it under this section. 395.17 Sec. 13. Minnesota Statutes 1996, section 123.935, 395.18 subdivision 2, is amended to read: 395.19 Subd. 2. [LOCATION OF SERVICES.] Health services may be 395.20 provided to nonpublic school pupils pursuant to this section at 395.21 a public school, a neutral site, the nonpublic school or any 395.22 other suitable location. Guidance and counseling services may 395.23 be provided to nonpublic school pupils pursuant to this section 395.24 only at a public school or a neutral site. District or 395.25 intermediary service area personnel and representatives of the 395.26 nonpublic school pupils receiving pupil support servicesshall395.27 must hold an annual consultation regarding the type of services, 395.28 provider of services, and the location of the provision of these 395.29 services. The district board or intermediary service area 395.30 governing boardshallmust make the final decision on the 395.31 location of the provision of these services. 395.32 Sec. 14. Minnesota Statutes 1996, section 123.935, 395.33 subdivision 4, is amended to read: 395.34 Subd. 4. [HEALTH SERVICES; ALLOTMENT.] Each school year 395.35 the commissioner shall allot to the school districts or other 395.36 intermediary service areas for the provision of health services 396.1 pursuant to this section the actual cost of the services 396.2 provided for the pupils in each respective nonpublic school for 396.3 that school year, but not to. The allotment must not exceed the 396.4 average expenditure per public school pupil for these services 396.5 by those Minnesota public elementary and secondary schools which 396.6 provide health services to public school pupils, multiplied by 396.7 the number of pupils in that particular nonpublic school who 396.8 request these health services and who are enrolled as of 396.9 September 15 of the current school year. 396.10 Sec. 15. Minnesota Statutes 1996, section 123.935, 396.11 subdivision 5, is amended to read: 396.12 Subd. 5. [GUIDANCE AND COUNSELING SERVICES; ALLOTMENT.] 396.13 Each school year the commissioner shall allot to the school 396.14 districts or intermediary service areas for the provision of 396.15 guidance and counseling services pursuant to this section the 396.16 actual cost of the services provided for the pupils in each 396.17 respective nonpublic school for that school year. The allotment 396.18 for guidance and counseling services for the secondary pupils in 396.19 each nonpublic schoolshallmust not exceed the average 396.20 expenditure per public school secondary pupil for these services 396.21 by those Minnesota public schools which provide these services 396.22 to their secondary pupils, multiplied by the number of secondary 396.23 pupils in that particular nonpublic school who request these 396.24 services and who are enrolled as of September 15 of the current 396.25 school year. 396.26 Sec. 16. Minnesota Statutes 1996, section 123.935, 396.27 subdivision 6, is amended to read: 396.28 Subd. 6. [COMPUTATION OF MAXIMUM ALLOTMENTS.] For purposes 396.29 of computing maximum allotments for each school year pursuant to 396.30 this section, the average public school expenditure per pupil 396.31 for health services and the average public school expenditure 396.32 per secondary pupil for guidance and counseling services shall 396.33 be computed and established by the departmentof children,396.34families, and learningby March 1 of the preceding school year 396.35 from the most recent public school year data then available. 396.36 Sec. 17. Minnesota Statutes 1996, section 123.936, is 397.1 amended to read: 397.2 123.936 [PAYMENTS FOR CONTRACTUAL OBLIGATIONS.] 397.3In every eventThe commissioner shall make such payments to 397.4 school districts or intermediary service areas pursuant to 397.5 sections 123.931 to 123.937 as are needed to meet contractual 397.6 obligations incurred for the provision of benefits to nonpublic 397.7 school students pursuant to section 123.933 or 123.935. 397.8 Sec. 18. Minnesota Statutes 1996, section 123.9361, is 397.9 amended to read: 397.10 123.9361 [ADMINISTRATIVE COSTS.] 397.11 Each year, aschooldistrict or intermediary service area 397.12 may claim and receive from the departmentof children, families,397.13and learningan additional sum for the administration of 397.14 sections 123.933 and 123.935, equal to five percent of the 397.15 district's or area's allocation for that year pursuant to those 397.16 sections. 397.17 Sec. 19. Minnesota Statutes 1996, section 123.9362, is 397.18 amended to read: 397.19 123.9362 [NOTICE TO DISTRICTS; PRORATION.] 397.20In the eventIf the appropriation for nonpublic educational 397.21 aid under sections 123.931 to 123.947 is not sufficient to meet 397.22 the required payments in any fiscal year, the departmentof397.23children, families, and learningmust notify the school 397.24 districts at the earliest possible date of the need to prorate 397.25 the appropriation among the districts. 397.26 Sec. 20. Minnesota Statutes 1996, section 123.947, is 397.27 amended to read: 397.28 123.947 [USE OF INDIVIDUALIZED INSTRUCTIONAL MATERIALS.] 397.29 (a) The commissioner shall assure that textbooks and 397.30 individualized instructional materials loaned to nonpublic 397.31 school pupils are secular, neutral, nonideological and that they 397.32 are incapable of diversion for religious use. 397.33 (b) Textbooks and individualized instructional materials 397.34shallmust not be used in religious courses, devotional 397.35 exercises, religious training or any other religious activity. 397.36 (c) Textbooks and individualized instructional materials 398.1shallmust be loaned only to individual pupils upon the request 398.2 of a parent or guardian or the pupil on a form designated for 398.3 this use by the commissioner. The request forms shall provide 398.4 for verification by the parent or guardian or pupil that the 398.5 requested textbooks and individualized instructional materials 398.6 are for the use of the individual pupil in connection with a 398.7 program of instruction in the pupil's elementary or secondary 398.8 school. 398.9 (d) The servicing school district or the intermediary 398.10 service areashallmust take adequate measures to ensure an 398.11 accurate and periodic inventory of all textbooks and 398.12 individualized instructional materials loaned to elementary and 398.13 secondary school pupils attending nonpublic schools. The state 398.14 board of education shall promulgate rules under the provisions 398.15 of chapter 14 to terminate the eligibility of any nonpublic 398.16 school pupil if the commissioner determines, after notice and 398.17 opportunity for hearing, that the textbooks or individualized 398.18 instructional materials have been used in a manner contrary to 398.19 the provisions of section 123.932, subdivision 1e, 123.933, or 398.20 this section or any rules promulgated by the state board of 398.21 education. 398.22 (e) Nothing contained in section 123.932, subdivision 1e, 398.23 123.933, or this section shall be construed to authorize the 398.24 making of any payments to a nonpublic school or its faculty, 398.25 staff or administrators for religious worship or instruction or 398.26 for any other purpose. 398.27 Sec. 21. Minnesota Statutes 1996, section 124.17, 398.28 subdivision 2, is amended to read: 398.29 Subd. 2. [AVERAGE DAILY MEMBERSHIP.] Membership for pupils 398.30 in grades kindergarten through 12 and for prekindergarten pupils 398.31 with disabilities shall mean the number of pupils on the current 398.32 roll of the school, counted from the date of entry until 398.33 withdrawal. The date of withdrawal shall mean the day the pupil 398.34 permanently leaves the school or the date it is officially known 398.35 that the pupil has left or has been legally excused. However, a 398.36 pupil, regardless of age, who has been absent from school for 15 399.1 consecutive school days during the regular school year or for 399.2 five consecutive school days during summer school or 399.3 intersession classes of flexible school year programs without 399.4 receiving instruction in the home or hospital shall be dropped 399.5 from the roll and classified as withdrawn. Nothing in this 399.6 section shall be construed as waiving the compulsory attendance 399.7 provisions cited in section 120.101. Average daily membership 399.8shall equalequals the sum for all pupils of the number of days 399.9 of the school year each pupil is enrolled in the district's 399.10 schools divided by the number of days the schools are in 399.11 session. Days of summer school or intersession classes of 399.12 flexible school year programsshallare onlybeincluded in the 399.13 computation of membership for pupils with a disability 399.14 appropriately served at level 4, 5, or 6 of the continuum of 399.15 placement model described in Minnesota Rules, part 3525.0200. 399.16 Sec. 22. Minnesota Statutes 1997 Supplement, section 399.17 124.17, subdivision 1, is amended to read: 399.18 Subdivision 1. [ACTUAL PUPIL UNIT.] Actual pupil units for 399.19 each resident pupil in average daily membership shall be counted 399.20 according to this subdivision. 399.21 (a) A prekindergarten pupil with a disability who is 399.22 enrolled in a program approved by the commissioner and has an 399.23 individual education plan is counted as the ratio of the number 399.24 of hours of assessment and education service to 825 with a 399.25 minimum of 0.28, but not more than one. 399.26 (b) A prekindergarten pupil who is assessed but determined 399.27 not to be handicapped is counted as the ratio of the number of 399.28 hours of assessment service to 825. 399.29 (c) A kindergarten pupil with a disability who is enrolled 399.30 in a program approved by the commissioner is counted as the 399.31 ratio of the number of hours of assessment and education 399.32 services required in the fiscal year by the pupil's individual 399.33 education program plan to 875, but not more than one. 399.34 (d) A kindergarten pupil who is not included in paragraph 399.35 (c) is counted as .53 of a pupil unit for fiscal year 1995 and 399.36 thereafter. 400.1 (e) A pupil who is in any of grades 1 to 6 is counted as 400.2 1.06 pupil units for fiscal year 1995 and thereafter. 400.3 (f) A pupil who is in any of grades 7 to 12 is counted as 400.4 1.3 pupil units. 400.5 (g) A pupil who is in the post-secondary enrollment options 400.6 program is counted as 1.3 pupil units. 400.7 Sec. 23. Minnesota Statutes 1996, section 124.17, 400.8 subdivision 2a, is amended to read: 400.9 Subd. 2a. [TRANSITIONAL YEAR PUPILS.] Notwithstanding 400.10 subdivision 2, pupils granted transitional year status shall 400.11 continue to be counted as members on the current roll of the 400.12 school for the remainder of the school year. For purposes of 400.13 computing average daily membership, transitional year 400.14 pupilsshallmust be considered to be enrolled every day school 400.15 is in session for the remainder of the school year. 400.16 Sec. 24. Minnesota Statutes 1996, section 124.17, 400.17 subdivision 2b, is amended to read: 400.18 Subd. 2b. [NATIONAL GUARD PUPILS.] Notwithstanding 400.19 subdivision 2, pupils enrolled in the Minnesota National Guard 400.20 program shall be construed to be in attendance, for purposes of 400.21 computing average daily membership, during any period of the 400.22 regular school year, but not to include summer school, during 400.23 which the pupil is attending military active duty training 400.24 pursuant to that program. During that period of military active 400.25 duty training, the pupil shall earn all aid for the district of 400.26 residence or attendance which would be otherwise earned by the 400.27 pupil's presence. 400.28 Sec. 25. Minnesota Statutes 1997 Supplement, section 400.29 124.17, subdivision 4, is amended to read: 400.30 Subd. 4. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 400.31 enrolled in a learning year program under section 121.585, an 400.32 area learning center under sections 124C.45 and 124C.46, or an 400.33 alternative program approved by the commissioner, for more than 400.34 1,020 hours in a school year for a secondary student, more than 400.35 935 hours in a school year for an elementary student, or more 400.36 than 425 hours in a school year for a kindergarten student 401.1 without a disability, that pupil may be counted as more than one 401.2 pupil in average daily membership. The amount in excess of one 401.3 pupil must be determined by the ratio of the number of hours of 401.4 instruction provided to that pupil in excess of: (i) the 401.5 greater of 1,020 hours or the number of hours required for a 401.6 full-time secondary pupil in the district to 1,020 for a 401.7 secondary pupil; (ii) the greater of 935 hours or the number of 401.8 hours required for a full-time elementary pupil in the district 401.9 to 935 for an elementary pupil in grades 1 through 6; and (iii) 401.10 the greater of 425 hours or the number of hours required for a 401.11 full-time kindergarten student without a disability in the 401.12 district to 425 for a kindergarten student without a 401.13 disability. Hours that occur after the close of the 401.14 instructional year in June shall be attributable to the 401.15 following fiscal year. A kindergarten student must not be 401.16 counted as more than 1.2 pupils in average daily membership 401.17 under this subdivision. 401.18 (b)(i) To receive general education revenue for a pupil in 401.19 an alternative program that has an independent study component, 401.20 aschooldistrict must meet the requirements in this paragraph. 401.21 Theschooldistrict must develop, with the pupil, a continual 401.22 learning plan for the pupil. A district must allow a minor 401.23 pupil's parent or guardian to participate in developing the 401.24 plan, if the parent or guardian wants to participate. The plan 401.25 must identify the learning experiences and expected outcomes 401.26 needed for satisfactory credit for the year and for graduation. 401.27 The plan must be updated each year. Each school district that 401.28 has a state-approved public alternative program must reserve 401.29 revenue in an amount equal to at least 90 percent of the 401.30 district average general education revenue per pupil unit less 401.31 compensatory revenue per pupil unit times the number of pupil 401.32 units generated by students attending a state-approved public 401.33 alternative program. The amount of reserved revenue available 401.34 under this subdivision may only be spent for program costs 401.35 associated with the state-approved public alternative program. 401.36 Compensatory revenue must be allocated according to section 402.1 124A.28, subdivision 1a. 402.2 (ii) General education revenue for a pupil in an approved 402.3 alternative program without an independent study component must 402.4 be prorated for a pupil participating for less than a full year, 402.5 or its equivalent. Each school district that has a 402.6 state-approved public alternative program must reserve revenue 402.7 in an amount equal to at least 90 percent of the district 402.8 average general education revenue per pupil unit less 402.9 compensatory revenue per pupil unit times the number of pupil 402.10 units generated by students attending a state-approved public 402.11 alternative program. The amount of reserved revenue available 402.12 under this subdivision may only be spent for program costs 402.13 associated with the state-approved public alternative program. 402.14 Compensatory revenue must be allocated according to section 402.15 124A.28, subdivision 1a. 402.16 (iii) General education revenue for a pupil in an approved 402.17 alternative program that has an independent study component must 402.18 be paid for each hour of teacher contact time and each hour of 402.19 independent study time completed toward a credit or graduation 402.20 standards necessary for graduation. Average daily membership 402.21 for a pupil shall equal the number of hours of teacher contact 402.22 time and independent study time divided by 1,020. 402.23 (iv) For an alternative program having an independent study 402.24 component, the commissioner shall require a description of the 402.25 courses in the program, the kinds of independent study involved, 402.26 the expected learning outcomes of the courses, and the means of 402.27 measuring student performance against the expected outcomes. 402.28 Sec. 26. Minnesota Statutes 1996, section 124.175, is 402.29 amended to read: 402.30 124.175 [AFDC PUPIL COUNT; CERTIFICATION.] 402.31 Each year by March 1, the department of human services 402.32 shall certify to the department of children, families, and 402.33 learning, for eachschooldistrict, the number of pupils from 402.34 families receiving aid to families with dependent children who 402.35 were enrolled in a public school on October 1 of the preceding 402.36 year. 403.1 Sec. 27. Minnesota Statutes 1996, section 124.19, 403.2 subdivision 5, is amended to read: 403.3 Subd. 5. [SCHEDULE ADJUSTMENTS.] (a) It is the intention 403.4 of the legislature to encourage efficient and effective use of 403.5 staff and facilities byschooldistricts.SchoolDistricts are 403.6 encouraged to consider both cost and energy saving measures. 403.7 (b)Notwithstanding the provisions of subdivision 1 or 4,403.8 Any district operating a program pursuant to sections 120.59 to 403.9 120.67, 121.585 or 125.701 to 125.705, or operating a 403.10 commissioner-designated area learning center program under 403.11 section 124C.49, or that otherwise receives the approval of the 403.12 commissioner to operate its instructional program to avoid an 403.13 aid reduction in any year, may adjust the annual school schedule 403.14 for that program throughout the calendar year. 403.15 Sec. 28. Minnesota Statutes 1996, section 124.225, 403.16 subdivision 7f, is amended to read: 403.17 Subd. 7f. [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 403.18 districtshallmust reserve an amount equal to the greater of 403.19 $500 or $1.50 times the number of fund balance pupil units, for 403.20 that school year to provide student transportation safety 403.21 programs under section 123.799. This revenue may only be used 403.22 if the district complies with the reporting requirements of 403.23 section 123.7991, 123.805, 169.452, 169.4582, or 171.321, 403.24 subdivision 5. 403.25 Sec. 29. Minnesota Statutes 1996, section 124.225, 403.26 subdivision 8l, is amended to read: 403.27 Subd. 8l. [ALTERNATIVE ATTENDANCE PROGRAMS.] A district 403.28 that enrolls nonresident pupils in programs under sections 403.29 120.062, 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 403.30 126.22,shallmust provide authorized transportation to the 403.31 pupil within the attendance area for the school that the pupil 403.32 attends. The resident district need not provide or pay for 403.33 transportation between the pupil's residence and the district's 403.34 border. 403.35 Sec. 30. Minnesota Statutes 1996, section 124.225, 403.36 subdivision 8m, is amended to read: 404.1 Subd. 8m. [TRANSPORTATION SAFETY AID.] A district's 404.2 transportation safety aid equals the district's reserved revenue 404.3 for transportation safety under subdivision 7f for that school 404.4 year. Failure of aschooldistrict to comply with the reporting 404.5 requirements of section 123.7991, 123.805, 169.452, 169.4582, or 404.6 171.321, subdivision 5, may result in a withholding of that 404.7 district's transportation safety aid for that school year. 404.8 Sec. 31. Minnesota Statutes 1996, section 124.225, 404.9 subdivision 9, is amended to read: 404.10 Subd. 9. [DISTRICT REPORTS.] Each districtshallmust 404.11 report data to the department as required by the department to 404.12 account for transportation expenditures. 404.13 Sec. 32. Minnesota Statutes 1996, section 124.239, 404.14 subdivision 3, is amended to read: 404.15 Subd. 3. [BOND AUTHORIZATION.] A school district, upon 404.16 approval of itsschoolboard and the commissioner, may issue 404.17 general obligation bonds under this section to finance approved 404.18 facilities plans. Chapter 475, except sections 475.58 and 404.19 475.59, must be complied with. The district may levy under 404.20 subdivision 5 for the debt service revenue. The authority to 404.21 issue bonds under this section is in addition to any bonding 404.22 authority authorized by this chapter, or other law. The amount 404.23 of bonding authority authorized under this section must be 404.24 disregarded in calculating the bonding or net debt limits of 404.25 this chapter, or any other law other than section 475.53, 404.26 subdivision 4. 404.27 Sec. 33. Minnesota Statutes 1996, section 124.242, is 404.28 amended to read: 404.29 124.242 [BUILDING BONDS FOR CALAMITIES.] 404.30 Subdivision 1. [BONDS.] When a building owned by aschool404.31 district is substantially damaged by an act of God or other 404.32 means beyond the control of the district, the district may issue 404.33 general obligation bonds without an election to provide money 404.34 immediately to carry out its adopted health and safety program. 404.35 Each year the district must pledge an attributable share of its 404.36 health and safety revenue to the repayment of principal and 405.1 interest on the bonds. The pledged revenueshallmust be 405.2 transferred to the debt redemption fund of the district. The 405.3 districtshallmust submit to the departmentof children,405.4families, and learningthe repayment schedule for any bonds 405.5 issued under this section. The districtshallmust deposit in 405.6 the debt redemption fund all proceeds received for specific 405.7 costs for which the bonds were issued, including but not limited 405.8 to: 405.9 (1) insurance proceeds; 405.10 (2) restitution proceeds; and 405.11 (3) proceeds of litigation or settlement of a lawsuit. 405.12 Before bonds are issued, the district must submit a 405.13 combined application to the commissionerof children, families,405.14and learningfor health and safety revenue, according to section 405.15 124.83, and requesting review and comment, according to section 405.16 121.15, subdivisions 6, 7, 8, and 9. The commissioner shall 405.17 complete all procedures concerning the combined application 405.18 within 20 days of receiving the application. The publication 405.19 provisions of section 121.15, subdivision 9, do not apply to 405.20 bonds issued under this section. 405.21 Subd. 2. [HEALTH AND SAFETY REVENUE.] For any fiscal year 405.22 where the total amount of health and safety revenue is limited, 405.23 the commissionerof children, families, and learning shallmust 405.24 award highest priority to health and safety revenue pledged to 405.25 repay building bonds issued under subdivision 1. 405.26 Sec. 34. Minnesota Statutes 1997 Supplement, section 405.27 124.2445, is amended to read: 405.28 124.2445 [PURCHASE OF CERTAIN EQUIPMENT.] 405.29 The board of aschooldistrict may issue general obligation 405.30 certificates of indebtedness or capital notes subject to the 405.31schooldistrict debt limits to purchase: (a) vehicles, 405.32 computers, telephone systems, cable equipment, photocopy and 405.33 office equipment, technological equipment for instruction, and 405.34 other capital equipment having an expected useful life at least 405.35 as long as the terms of the certificates or notes; and (b) 405.36 computer hardware and software, without regard to its expected 406.1 useful life, whether bundled with machinery or equipment or 406.2 unbundled, together with application development services and 406.3 training related to the use of the computer. The certificates 406.4 or notes must be payable in not more than five years and must be 406.5 issued on the terms and in the manner determined by the board. 406.6 The certificates or notes may be issued by resolution and 406.7 without the requirement for an election. The certificates or 406.8 notes are general obligation bonds for purposes of section 406.9 124.755. A tax levy must be made for the payment of the 406.10 principal and interest on the certificates or notes, in 406.11 accordance with section 475.61, as in the case of bonds. The 406.12 sum of the tax levies under this section and section 124.2455 406.13 for each year must not exceed the amount of the district's total 406.14 operating capital revenue for the year the initial debt service 406.15 levies are certified. The district's general education levy for 406.16 each year must be reduced by the sum of (1) the amount of the 406.17 tax levies for debt service certified for each year for payment 406.18 of the principal and interest on the certificates or notes as 406.19 required by section 475.61, and (2) any excess amount in the 406.20 debt redemption fund used to retire certificates or notes issued 406.21 after April 1, 1997, other than amounts used to pay capitalized 406.22 interest. A district using an excess amount in the debt 406.23 redemption fund to retire the certificates or notes shall report 406.24 the amount used for this purpose to the commissioner by July 15 406.25 of the following fiscal year. A district having an outstanding 406.26 capital loan under section 124.431 or an outstanding debt 406.27 service loan under section 124.42 must not use an excess amount 406.28 in the debt redemption fund to retire the certificates or notes. 406.29 Sec. 35. Minnesota Statutes 1997 Supplement, section 406.30 124.2455, is amended to read: 406.31 124.2455 [BONDS FOR CERTAIN CAPITAL FACILITIES.] 406.32 (a) In addition to other bonding authority, with approval 406.33 of the commissioner, aschooldistrict may issue general 406.34 obligation bonds for certain capital projects under this 406.35 section. The bonds must be used only to make capital 406.36 improvements including: 407.1 (1) under section 124A.22, subdivision 11, total operating 407.2 capital revenue uses specified in clauses (4), (6), (7), (8), 407.3 (9), and (10); 407.4 (2) the cost of energy modifications; 407.5 (3) improving handicap accessibility to school buildings; 407.6 and 407.7 (4) bringing school buildings into compliance with life and 407.8 safety codes and fire codes. 407.9 (b) Before a district issues bonds under this subdivision, 407.10 it must publish notice of the intended projects, the amount of 407.11 the bond issue, and the total amount of district indebtedness. 407.12 (c) A bond issue tentatively authorized by the board under 407.13 this subdivision becomes finally authorized unless a petition 407.14 signed by more than 15 percent of the registered voters of the 407.15schooldistrict is filed with the school board within 30 days of 407.16 the board's adoption of a resolution stating the board's 407.17 intention to issue bonds. The percentage is to be determined 407.18 with reference to the number of registered voters in theschool407.19 district on the last day before the petition is filed with the 407.20schoolboard. The petition must call for a referendum on the 407.21 question of whether to issue the bonds for the projects under 407.22 this section. The approval of 50 percent plus one of those 407.23 voting on the question is required to pass a referendum 407.24 authorized by this section. 407.25 (d) The bonds must be paid off within ten years of 407.26 issuance. The bonds must be issued in compliance with chapter 407.27 475, except as otherwise provided in this section. A tax levy 407.28 must be made for the payment of principal and interest on the 407.29 bonds in accordance with section 475.61. The sum of the tax 407.30 levies under this section and section 124.2455 for each year 407.31 must not exceed the amount of the district's total operating 407.32 capital revenue for the year the initial debt service levies are 407.33 certified. The district's general education levy for each year 407.34 must be reduced by the sum of (1) the amount of the tax levies 407.35 for debt service certified for each year for payment of the 407.36 principal and interest on the bonds, and (2) any excess amount 408.1 in the debt redemption fund used to retire bonds issued after 408.2 April 1, 1997, other than amounts used to pay capitalized 408.3 interest. A district using an excess amount in the debt 408.4 redemption fund to retire the bonds shall report the amount used 408.5 for this purpose to the commissioner by July 15 of the following 408.6 fiscal year. A district having an outstanding capital loan 408.7 under section 124.431 or an outstanding debt service loan under 408.8 section 124.42 must not use an excess amount in the debt 408.9 redemption fund to retire the bonds. 408.10 (e) Notwithstanding paragraph (d), bonds issued by a 408.11 district within the first five years following voter approval of 408.12 a combination according to section 122.243, subdivision 2, must 408.13 be paid off within 20 years of issuance. All the other 408.14 provisions and limitation of paragraph (d) apply. 408.15 Sec. 36. Minnesota Statutes 1996, section 124.2726, 408.16 subdivision 1, is amended to read: 408.17 Subdivision 1. [ELIGIBILITY AND USE.] Aschooldistrict 408.18 that has been reorganized after June 30, 1994, under section 408.19 122.23 is eligible for consolidation transition revenue. 408.20 Revenue is equal to the sum of aid under subdivision 2 and levy 408.21 under subdivision 3. Consolidation transition revenue may only 408.22 be used according to this section. Revenue must be used for the 408.23 following purposes and may be distributed among these purposes 408.24 at the discretion of the district: 408.25 (1) to offer early retirement incentives as provided by 408.26 section 122.23, subdivision 20; 408.27 (2) to reduce operating debt as defined in section 121.915; 408.28 (3) to enhance learning opportunities for students in the 408.29 reorganized district; and 408.30 (4) for other costs incurred in the reorganization. 408.31 Revenue received and utilized under clause (3) or (4) may 408.32 be expended for operating, facilities, and/or equipment. 408.33 Revenue received under this sectionshallmust not be included 408.34 in the determination of the reduction under section 124A.26, 408.35 subdivision 1. 408.36 Sec. 37. Minnesota Statutes 1996, section 124.2726, 409.1 subdivision 2, is amended to read: 409.2 Subd. 2. [AID.] (a) Consolidation transition aid is equal 409.3 to $200 times the number of actual pupil units in the newly 409.4 created district in the year of consolidation and $100 times the 409.5 number of actual pupil units in the first year following the 409.6 year of consolidation. The number of pupil units used to 409.7 calculate aid in either year shall not exceed 1,000 for 409.8 districts consolidating July 1, 1994, and 1,500 for districts 409.9 consolidating July 1, 1995, and thereafter. 409.10 (b) If the total appropriation for consolidation transition 409.11 aid for any fiscal year, plus any amount transferred under 409.12 section 124.14, subdivision 7, is insufficient to pay all 409.13 districts the full amount of aid earned, the departmentof409.14children, families, and learning shallmust first pay the 409.15 districts in the first year following the year of consolidation 409.16 the full amount of aid earned and distribute any remaining funds 409.17 to the newly created districts in the first year of 409.18 consolidation. 409.19 Sec. 38. Minnesota Statutes 1996, section 124.2726, 409.20 subdivision 4, is amended to read: 409.21 Subd. 4. [NEW DISTRICTS.] If a district consolidates with 409.22 another district that has received aid under section 124.2725 or 409.23 124.2726 within six years of the effective date of the new 409.24 consolidation, only the pupil units in the district or districts 409.25 not previously reorganizedshallmust be counted for aid 409.26 purposes under subdivision 2. If two or more districts 409.27 consolidate and all districts received aid under subdivision 2 409.28 within six years of the effective date of the new consolidation, 409.29 only one quarter of the pupil units in the newly created 409.30 districtshallmust be used to determine aid under subdivision 2. 409.31 Sec. 39. Minnesota Statutes 1996, section 124.2727, 409.32 subdivision 9, is amended to read: 409.33 Subd. 9. [PRORATION.] (a) If the total appropriation 409.34 available for district cooperation aid for any fiscal year, plus 409.35 any amount transferred under section 124.14, subdivision 7, is 409.36 insufficient to pay all districts the full amount of aid earned, 410.1 the departmentof children, families, and learning shallmust 410.2 reduce each district's district cooperation revenue according to 410.3 the calculations in paragraphs (b) to (d). 410.4 (b) If there is insufficient district cooperation aid 410.5 available, the department must recompute the district 410.6 cooperation revenue by proportionally reducing the formula 410.7 allowance and the revenue minimum to the levels that result in 410.8 an aid entitlement, adjusted by the percentage in section 410.9 124.195, subdivision 10, equal to the amount available. The 410.10 levy amounts must not be recomputed. 410.11 (c) A district's proration aid reduction is equal to the 410.12 lesser of zero, or the difference of the existing aid 410.13 calculation minus the aid amount computed for the district under 410.14 paragraph (b). 410.15 (d) If a district's proration aid reduction is less than 410.16 its revenue reduction, its district cooperation levy authority 410.17 for the following year must be reduced by the amount of the 410.18 difference between its revenue reduction and its aid reduction. 410.19 Sec. 40. Minnesota Statutes 1996, section 124.35, is 410.20 amended to read: 410.21 124.35 [LOANS TO DISTRESSED DISTRICTS.] 410.22 Financial aid to distressed districtsshall beis governed 410.23 by the provisions of the maximum effort school aid law. 410.24 Sec. 41. Minnesota Statutes 1996, section 124.37, is 410.25 amended to read: 410.26 124.37 [POLICY AND PURPOSE.] 410.27 The rates of increase in school population in Minnesota and 410.28 population shifts and economic changes in recent years, and 410.29 anticipated in future years, have required and will require 410.30 large expenditures for performing the duty of the state and its 410.31 subdivisions to provide a general and uniform system of public 410.32 schools. The state policy has been to require these school 410.33 costs to be borne primarily by the local subdivisions. In most 410.34 instances the local subdivisions have been, and will be, able to 410.35 provide the required funds by local taxation as supplemented by 410.36 the aids usually given to allschooldistricts from state income 411.1 tax and other state aids. There are, however, exceptional cases 411.2 due to local conditions not found in most other districts where, 411.3 either temporarily or over a considerable period of years, the 411.4 costs will exceed the maximum which the local taxpayers can be 411.5 reasonably expected to bear. In some districts having bonds of 411.6 several issues outstanding, debt service tax levy requirements 411.7 are excessive for some years because of heavy bond principal 411.8 payments accumulating in some of the years due to overlapping or 411.9 short term issues. The policy and purpose of sections 124.36 to 411.10 124.46 is to utilize the credit of the state, to a limited 411.11 degree, to relieve those school districts, but only those, where 411.12 the maximum effort by the district is inadequate to provide the 411.13 necessary money. It is also the purpose of sections 124.36 to 411.14 124.46 to promote efficient use of school buildings. To that 411.15 end, a district that receives a maximum effort loan is 411.16 encouraged to design and use its facility to integrate social 411.17 services and library services. 411.18 Sec. 42. Minnesota Statutes 1996, section 124.38, 411.19 subdivision 1, is amended to read: 411.20 Subdivision 1. [SCOPE.] As used in sections 124.38 to 411.21 124.46, the terms defined in this section shall have 411.22 thefollowingmeanings:given them. 411.23 Sec. 43. Minnesota Statutes 1996, section 124.38, 411.24 subdivision 4a, is amended to read: 411.25 Subd. 4a. [LEVY.] "Levy" means a district's net debt 411.26 service levy after the reduction of debt service equalization 411.27 aid under section 124.95, subdivision 5. For taxes payable in 411.28 1994 and later, each district's maximum effort debt service levy 411.29 for purposes of subdivision 7,shallmust be reduced by an equal 411.30 number of percentage points if the commissioner determines that 411.31 the levy reduction will not result in a statewide property tax 411.32 as would be required under Minnesota Statutes 1992, section 411.33 124.46, subdivision 3. A district's levy that is adjusted under 411.34 this sectionshallmust not be reduced below 18.74 percent of 411.35 the district's adjusted net tax capacity. 411.36 Sec. 44. Minnesota Statutes 1996, section 124.38, 412.1 subdivision 7, is amended to read: 412.2 Subd. 7. [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 412.3 effort debt service levy" means the lesser of: 412.4 (1) a levy in whichever of the following amounts is 412.5 applicable: 412.6 (a) in anyschooldistrict receiving a debt service loan 412.7 for a debt service levy payable in 1991 and thereafter, or 412.8 granted a capital loan after January 1, 1990, a levy in a total 412.9 dollar amount computed at a rate of 20 percent of adjusted net 412.10 tax capacity for taxes payable in 1991 and thereafter; 412.11 (b) in anyschooldistrict granted a debt service loan 412.12 after July 31, 1981, or granted a capital loan which is approved 412.13 after July 31, 1981, a levy in a total dollar amount computed as 412.14 a tax rate of 13.08 percent on the adjusted gross tax capacity 412.15 for taxes payable in 1990 or a tax rate of 18.42 percent on the 412.16 adjusted net tax capacity for taxes payable in 1991 and 412.17 thereafter; 412.18 (c) in anyschooldistrict granted a debt service loan 412.19 before August 1, 1981, or granted a capital loan which was 412.20 approved before August 1, 1981, a levy in a total dollar amount 412.21 computed as a tax rate of 12.26 percent on the adjusted gross 412.22 tax capacity for taxes payable in 1990 or a tax rate of 17.17 412.23 percent on the adjusted net tax capacity for taxes payable in 412.24 1991 and thereafter, until and unless the district receives an 412.25 additional loan; or 412.26 (2) a levy in whichever of the following amounts is 412.27 applicable: 412.28 (a) in anyschooldistrict which received a debt service or 412.29 capital loan from the state before January 1, 1965, a levy in a 412.30 total dollar amount computed as 4.10 mills on the market value 412.31 in each year, unless the district applies or has applied for an 412.32 additional loan subsequent to January 1, 1965, or issues or has 412.33 issued bonds on the public market, other than bonds refunding 412.34 state loans, subsequent to January 1, 1967; 412.35 (b) in anyschooldistrict granted a debt service or 412.36 capital loan between January 1, 1965, and July 1, 1969, a levy 413.1 in a total dollar amount computed as 5-1/2 mills on the market 413.2 value in each year, until and unless the district receives an 413.3 additional loan; 413.4 (c) in anyschooldistrict granted a debt service or 413.5 capital loan between July 1, 1969, and July 1, 1975, a levy in a 413.6 total dollar amount computed as 6.3 mills on market value in 413.7 each year until and unless the district has received an 413.8 additional loan; 413.9 (d) in anyschooldistrict for which a capital loan was 413.10 approved prior to August 1, 1981, a levy in a total dollar 413.11 amount equal to the sum of the amount of the required debt 413.12 service levy and an amount which when levied annually will in 413.13 the opinion of the commissioner be sufficient to retire the 413.14 remaining interest and principal on any outstanding loans from 413.15 the state within 30 years of the original date when the capital 413.16 loan was granted; provided, that. Theschoolboard in any 413.17 district affected by the provisions of clause (2)(d) may elect 413.18 instead to determine the amount of its levy according to the 413.19 provisions of clause (1); provided further that. If a 413.20 district's capital loan is not paid within 30 years because it 413.21 elects to determine the amount of its levy according to the 413.22 provisions of clause (2)(d), the liability of the district for 413.23 the amount of the difference between the amount it levied under 413.24 clause (2)(d) and the amount it would have levied under clause 413.25 (1), and for interest on the amount of that difference,shall413.26 must not be satisfied and discharged pursuant to Minnesota 413.27 Statutes 1988, or an earlier edition of Minnesota Statutes if 413.28 applicable, section 124.43, subdivision 4. 413.29 Sec. 45. Minnesota Statutes 1996, section 124.381, is 413.30 amended to read: 413.31 124.381 [NET DEBT,; DETERMINATION.] 413.32 In computing "net debt" and in determining whetherany413.33schoola district is eligible for a state loan,nostate loans 413.34 toany such schoolthe district shall not be considered, 413.35 notwithstanding the provisions of any other general or special 413.36 law. 414.1 Sec. 46. Minnesota Statutes 1996, section 124.39, is 414.2 amended to read: 414.3 124.39 [FUND ESTABLISHED; DIVISION INTO ACCOUNTS.] 414.4 Subdivision 1. [MAXIMUM EFFORT SCHOOL LOAN FUND.]There414.5shall be maintained in the state treasuryA "maximum effort 414.6 school loan fund" for administration of moneys to be received 414.7 and disbursed as authorized and required by sections 124.36 to 414.8 124.46, whichmust be maintained in the state treasury. The 414.9 fundshallmust be divided into three accounts for the purposes 414.10 specified in subdivisions 2, 3, 4, and 5. 414.11 Subd. 2. [DEBT SERVICE LOAN ACCOUNT.]There shall beA 414.12 debt service loan account,must be maintained out of which loans 414.13 under section 124.42shallmust be made. All money appropriated 414.14 to the fund by section 124.40 shall be paid into this account 414.15 initially. 414.16 Subd. 3. [CAPITAL LOAN ACCOUNT.]There shall beA capital 414.17 loan account,must be maintained out of which loans under 414.18 section 124.431shallmust be made.There shall be transferred414.19to it from the debt service loan accountOn November 1of each414.20yearall moneystherein in excess of those required forin the 414.21 debt service loan account in excess of those for debt service 414.22 loans then agreed to be made must be transferred to the capital 414.23 loan account.There shall be transferred from it to the debt414.24service loan accountOn July 1of each year, all moneystherein414.25 in the capital loan account in excess of those required for 414.26 capital loans theretofore agreed to be made must be transferred 414.27 to the debt service loan account. 414.28 Subd. 4. [LOAN REPAYMENT ACCOUNT.]There shall beA loan 414.29 repayment account, into which shall be paidmust be maintained. 414.30 All principal and interest paid byschooldistricts on debt 414.31 service loans and capital loans made under section 124.42 or 414.32 124.431 must be paid into the account. The state's cost of 414.33 administering the maximum effort school aid lawshallmust be 414.34 paid out of this account, to an amount not exceeding $10,000 in 414.35 any year. As soon as possible in each year after the committee 414.36 has determined the ratio existing between the correct market 415.1 value of all taxable property in each school district in the 415.2 state and the "market value in money" of such property as 415.3 recorded in accordance with section 270.13, the commissioner of 415.4 revenue shallcauseprepare a list of all such ratiosto be415.5prepared. The clerical costs ofpreparation of suchpreparing 415.6 the listshallmust be paid as a cost of administration of the 415.7 maximum effort school aid law. The documents division of the 415.8 department of administration may publish and sell copies ofsuch415.9 the list.There shall be transferred out of the loan repayment415.10account to the state bond fundThe sums required to pay the 415.11 principal of and interest on all school loan bonds as provided 415.12 in section 124.46 must be transferred out of the loan repayment 415.13 account to the state bond fund. 415.14 Subd. 5. [EXCESS MONEY IN LOAN REPAYMENT ACCOUNT.] The 415.15 commissioner shall transfer from the loan repayment account to 415.16 the credit of the debt service loan account on November 1 of 415.17 each year all money deposited to the credit of the loan 415.18 repayment account thatwillis notberequired for the payment 415.19 of principal and interest and costs as prescribed in subdivision 415.20 4 but thatwill beis needed for debt service loans in the 415.21 fiscal year beginning July 1, and those moneys are annually 415.22 appropriated to that account for the purposes prescribed by the 415.23 maximum effort school aid law. Money deposited to the credit of 415.24 the loan repayment account and not required for the transfers or 415.25 for the payment of principal and interest due on school loan 415.26 bonds may be invested and reinvested in securities which are 415.27 general obligations of the United States or the state of 415.28 Minnesota. When all school loan bonds have been fully paid with 415.29 interest accrued thereon, the balance remaining in the account 415.30shallmust be transferred to the state bond fund. 415.31 Sec. 47. Minnesota Statutes 1996, section 124.40, is 415.32 amended to read: 415.33 124.40 [APPROPRIATION.] 415.34 Subdivision 1. [APPROPRIATION.]There is hereby415.35appropriated to the fund,In addition to all sums which have 415.36 been or may hereafter be appropriatedtheretoby any law, the 416.1 net proceeds of sale of any state school loan bonds authorized 416.2 to be issued under section 124.46, and all income received from 416.3 the investment of said net proceeds is hereby appropriated to 416.4 the school loan bond account in the state bond fund. 416.5 Subd. 2. [REMAINING MONEY.] Any amounts remaining in the 416.6 fund on July 1of each year, including any unused portion of the 416.7 appropriation made in subdivision 1,shallmust be available for 416.8 use by the commissioner in making further debt service loans and 416.9 capital loans. 416.10 Subd. 3. [PRINCIPAL INTEREST PAYMENTS.] All payments of 416.11 principal and interest on debt service notes or capital loan 416.12 contracts, as received by the commissioner, arehereby416.13 appropriated to the loan repayment account. 416.14 Sec. 48. Minnesota Statutes 1997 Supplement, section 416.15 124.41, subdivision 2, is amended to read: 416.16 Subd. 2. [APPLICATION FORMS; RULES.] The commissioner, 416.17 with the assistance of the attorney general or a designated 416.18 assistant, shall prepare forms of applications for debt service 416.19 loans and capital loans and instruments evidencing the loans. 416.20 The state boardshallmust promulgate rules to facilitate the 416.21 commissioner's operations in compliance with sections 124.36 to 416.22 124.46. The rulesshall beare subject to chapter 14. 416.23 Sec. 49. Minnesota Statutes 1996, section 124.41, 416.24 subdivision 3, is amended to read: 416.25 Subd. 3. [CLERK.] The commissioner may employ a clerk to 416.26 administer the maximum effort school aid law. The commissioner 416.27 may fix the clerk's compensation, whichshallmust be paid out 416.28 of the loan repayment account of the fund. 416.29 Sec. 50. Minnesota Statutes 1996, section 124.42, as 416.30 amended by Laws 1997, First Special Session chapter 4, article 416.31 4, section 12, is amended to read: 416.32 124.42 [DEBT SERVICE LOANS.] 416.33 Subdivision 1. [QUALIFICATION; APPLICATION; AWARD; 416.34 INTEREST.] Anyschooldistrict in which the required levy for 416.35 debt service in any year will exceed its maximum effort debt 416.36 service levy by ten percent or by $5,000, whichever is less, is 417.1 qualified for a debt service loan hereunder in an amount not 417.2 exceeding the amount applied for, and not exceeding one percent 417.3 of the net debt of the district, and not exceeding the 417.4 difference between the required and the maximum effort debt 417.5 service levy in that year. Applicationsshallmust be filed 417.6 with the commissioner in each calendar year up to and including 417.7 July 1. The commissioner shall determine whether the applicant 417.8 is entitled to a loan and the amount thereof, and on or before 417.9 October 1 shall certify to each applicant district the amount 417.10 granted and its due date. The commissioner shall notify the 417.11 county auditor of each county in which the district is located 417.12 that the amount certified is available and appropriated for 417.13 payment of principal and interest on its outstanding bonds, and. 417.14 The auditors shall reduce by that amount the taxes otherwise 417.15 leviable as the district's debt service levy on the tax rolls 417.16 for that year. Each debt service loan shall bear interest from 417.17 its date at a rate equal to the average annual rate payable on 417.18 Minnesota state school loan bonds most recently issued prior to 417.19 the disbursement of the loan to the district, but in no event 417.20 less than 3-1/2 percent per annum on the principal amount from 417.21 time to time remaining unpaid,. Interest is payable on December 417.22 15 of the year following that in which the loan is received and 417.23 annually thereafter. 417.24 Subd. 2. [NOTE.] Each debt service loanshallmust be 417.25 evidenced by a notewhich shall beexecuted on behalf of the 417.26 district by the signatures of its chair or vice-chair and the 417.27 school district clerk, shall. The note must be dated November 1 417.28 of the year in which executed, andshallmust state its 417.29 principal amount, interest rate, and that it is payable at the 417.30 commissioner's office.It shallThe note must have printed 417.31 thereon, or the commissioner shall attach thereto, a grill for 417.32 entry of the date and amount of each payment and allocations of 417.33 each payment to accrued interest or principal, and. The note 417.34 must also include a certificate to be executed by the county 417.35 auditor of each county in which any portion of theschool417.36 district is situated, prior to the delivery of the note, stating 418.1 that the county auditor has entered the debt service loan 418.2 evidenced thereby in the auditor's bond register. The 418.3 notesshallmust be delivered to the commissioner not later than 418.4 November 15 of the year in which executed. The commissioner 418.5 shall cause a record to be made and preserved showing the 418.6 obligor district and the date and principal amount of each note. 418.7 Subd. 3. [WARRANT.] The commissioner shall issue to each 418.8 district whose note has been so received a warrant on the debt 418.9 service loan account of the maximum effort school loan fund, 418.10 payable on presentation to the state treasurer out of any money 418.11 in such account. The warrant shall be issued by the 418.12 commissioner in sufficient time to coincide with the next date 418.13 on which the district is obligated to make principal or interest 418.14 payments on its bonded debt in the ensuing year. Interestshall418.15 must accrue from the date such warrant is issued. The proceeds 418.16 thereofshallmust be used by the district to pay principal or 418.17 interest on its bonded debt falling due in the ensuing year. 418.18 Subd. 4. [LEVY.] Each district receiving a debt service 418.19 loan shall levy for debt service in that year and each year 418.20 thereafter, until all its debts to the fund are paid, (a) the 418.21 amount of its maximum effort debt service levy, or (b) the 418.22 amount of its required debt service levy less the amount of any 418.23 debt service loan in that year, whichever is greater. The 418.24 district shall remit payments to the commissioner according to 418.25 section 124.45.On or beforeBy September 30in each year, the 418.26 commissioner shall notify the county auditor of each county 418.27 containing taxable property situated within the school district 418.28 of the amount of the maximum effort debt service levy of the 418.29 district for that year, and said county auditor or auditors 418.30 shall extend upon the tax rolls an ad valorem tax upon all 418.31 taxable property within the district in the aggregate amount so 418.32 certified. 418.33 Sec. 51. Minnesota Statutes 1997 Supplement, section 418.34 124.431, subdivision 2, is amended to read: 418.35 Subd. 2. [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 418.36schooldistrict or a joint powers district that intends to apply 419.1 for a capital loan must submit a proposal to the commissioner 419.2 for review and comment according to section 121.15on or before419.3 by July 1 of an odd-numbered year. The commissionermustshall 419.4 prepare a review and comment on the proposed facility, 419.5 regardless of the amount of the capital expenditure required to 419.6 construct the facility. In addition to the information provided 419.7 under section 121.15, subdivision 7, the commissioner shall 419.8 require that predesign packages comparable to those required 419.9 under section 16B.335 be prepared by the applicant school 419.10 district. The predesign packages must be sufficient to define 419.11 the scope, cost, and schedule of the project and must 419.12 demonstrate that the project has been analyzed according to 419.13 appropriate space needs standards and also consider the 419.14 following criteria in determining whether to make a positive 419.15 review and comment. 419.16 (a) To grant a positive review and comment the commissioner 419.17mustshall determine that all of the following conditions are 419.18 met: 419.19 (1) the facilities are needed for pupils for whom no 419.20 adequate facilities exist or will exist; 419.21 (2) the district will serve, on average, at least 80 pupils 419.22 per grade or is eligible for elementary or secondary sparsity 419.23 revenue; 419.24 (3) no form of cooperation with another district would 419.25 provide the necessary facilities; 419.26 (4) the facilities are comparable in size and quality to 419.27 facilities recently constructed in other districts that have 419.28 similar enrollments; 419.29 (5) the facilities are comparable in size and quality to 419.30 facilities recently constructed in other districts that are 419.31 financed without a capital loan; 419.32 (6) the district is projected to maintain or increase its 419.33 average daily membership over the next five years or is eligible 419.34 for elementary or secondary sparsity revenue; 419.35 (7) the current facility poses a threat to the life, 419.36 health, and safety of pupils, and cannot reasonably be brought 420.1 into compliance with fire, health, or life safety codes; 420.2 (8) the district has made a good faith effort, as evidenced 420.3 by its maintenance expenditures, to adequately maintain the 420.4 existing facility during the previous ten years and to comply 420.5 with fire, health, and life safety codes and state and federal 420.6 requirements for handicapped accessibility; 420.7 (9) the district has made a good faith effort to encourage 420.8 integration of social service programs within the new facility; 420.9 and 420.10 (10) evaluations byschoolboards of adjacent districts 420.11 have been received. 420.12 (b) The commissioner may grant a negative review and 420.13 comment if: 420.14 (1) the state demographer has examined the population of 420.15 the communities to be served by the facility and determined that 420.16 the communities have not grown during the previous five years; 420.17 (2) the state demographer determines that the economic and 420.18 population bases of the communities to be served by the facility 420.19 are not likely to grow or to remain at a level sufficient, 420.20 during the next ten years, to ensure use of the entire facility; 420.21 (3) the need for facilities could be met within the 420.22 district or adjacent districts at a comparable cost by leasing, 420.23 repairing, remodeling, or sharing existing facilities or by 420.24 using temporary facilities; 420.25 (4) the district plans do not include cooperation and 420.26 collaboration with health and human services agencies and other 420.27 political subdivisions; or 420.28 (5) if the application is for new construction, an existing 420.29 facility that would meet the district's needs could be purchased 420.30 at a comparable cost from any other source within the area. 420.31 Sec. 52. Minnesota Statutes 1996, section 124.431, 420.32 subdivision 4, is amended to read: 420.33 Subd. 4. [ADJACENT DISTRICT COMMENTS.] The districtshall420.34 must present the proposed project to theschoolboard of each 420.35 adjacent district at a public meeting of that district. The 420.36 board of an adjacent district shall must make a written 421.1 evaluation of how the project will affect the future education 421.2 and building needs of the adjacent district. The boardshall421.3 must submit the evaluation to the applying district within 30 421.4 days of the meeting. 421.5 Sec. 53. Minnesota Statutes 1996, section 124.431, 421.6 subdivision 5, is amended to read: 421.7 Subd. 5. [DISTRICT APPLICATION FOR CAPITAL LOAN.] The 421.8 school board of a district desiring a capital loan shall adopt a 421.9 resolution stating the amount proposed to be borrowed, the 421.10 purpose for which the debt is to be incurred, and an estimate of 421.11 the dates when the facilities for which the loan is requested 421.12 will be contracted for and completed. Applications for loans 421.13 must be accompanied by a copy of the adopted board resolution 421.14 and copies of the adjacent district evaluations. Theevaluation421.15 commissioner shallbe retained byretain thecommissioner421.16 evaluation as part of a permanent record of the district 421.17 submitting the evaluation. 421.18 Applications must be in the form and accompanied by the 421.19 additional data required by the commissioner. Applications must 421.20 be received by the commissioner by September 1 of an 421.21 odd-numbered year. A district must resubmit an application each 421.22 odd-numbered year. Capital loan applications that do not 421.23 receive voter approval or are not approved in law cancel July 1 421.24 of the year following application. When an application is 421.25 received, the commissioner shall obtain from the commissioner of 421.26 revenue the information in the revenue department's official 421.27 records that is required to be used in computing the debt limit 421.28 of the district under section 475.53, subdivision 4. 421.29 Sec. 54. Minnesota Statutes 1996, section 124.431, 421.30 subdivision 6, is amended to read: 421.31 Subd. 6. [STATE BOARD REVIEW; DISTRICT PROPOSALS.] By 421.32 November 1 of each odd-numbered year, the state board must 421.33 review all applications for capital loans that have received a 421.34 positive review and comment. When reviewing applications, the 421.35 state boardshallmust consider whether the criteria in 421.36 subdivision 2 have been met. The state board may not approve an 422.1 application if all of the required deadlines have not been met. 422.2 The state board may either approve or reject an application for 422.3 a capital loan. 422.4 Sec. 55. Minnesota Statutes 1996, section 124.431, 422.5 subdivision 10, is amended to read: 422.6 Subd. 10. [DISTRICT REFERENDUM.] After receipt of the 422.7 review and comment on the project and before January 1 of the 422.8 even-numbered year, the question authorizing the borrowing of 422.9 money for the facilities must be submitted by the school board 422.10 to the voters of the district at a regular or special election. 422.11 The question submitted must state the total amount to be 422.12 borrowed from all sources. Approval of a majority of those 422.13 voting on the question is sufficient to authorize the issuance 422.14 of the obligations on public sale in accordance with chapter 422.15 475. The face of the ballot must include the following 422.16 statement: "APPROVAL OF THIS QUESTION DOES NOT GUARANTEE THAT 422.17 THE SCHOOL DISTRICT WILL RECEIVE A CAPITAL LOAN FROM THE STATE. 422.18 THE LOAN MUST BE APPROVED BY THE STATE LEGISLATURE AND IS 422.19 DEPENDENT ON AVAILABLE FUNDING." The districtshallmust mail 422.20 to the commissionerof children, families, and learninga 422.21 certificate by the clerk showing the vote at the election. 422.22 Sec. 56. Minnesota Statutes 1997 Supplement, section 422.23 124.431, subdivision 11, is amended to read: 422.24 Subd. 11. [CONTRACT.] (a) Each capital loan must be 422.25 evidenced by a contract between theschooldistrict and the 422.26 state acting through the commissioner. The contract must 422.27 obligate the state to reimburse the district, from the maximum 422.28 effort school loan fund, for eligible capital expenses for 422.29 construction of the facility for which the loan is granted, an 422.30 amount computed as provided in subdivision 8. The commissioner 422.31 must receive from theschooldistrict a certified resolution of 422.32 theschoolboard estimating the costs of construction and 422.33 reciting that contracts for construction of the facilities for 422.34 which the loan is granted have been awarded and that bonds of 422.35 the district have been issued and sold in the amount necessary 422.36 to pay all estimated costs of construction in excess of the 423.1 amount of the loan. The contract must obligate the district to 423.2 repay the loan out of the excesses of its maximum effort debt 423.3 service levy over its required debt service levy, including 423.4 interest at a rate equal to the weighted average annual rate 423.5 payable on Minnesota state school loan bonds issued for the 423.6 project and disbursed to the districts on a reimbursement basis, 423.7 but in no event less than 3-1/2 percent per year on the 423.8 principal amount from time to time unpaid. 423.9 (b) The districtshallmust each year, as long as it is 423.10 indebted to the state, levy for debt service (i) the amount of 423.11 its maximum effort debt service levy or (ii) the amount of its 423.12 required debt service levy, whichever is greater, except as the 423.13 required debt service levy may be reduced by a loan under 423.14 section 124.42. The district shall remit payments to the 423.15 commissioner according to section 124.45. 423.16 (c) The commissioner shall supervise the collection of 423.17 outstanding accounts due the fund and may, by notice to the 423.18 proper county auditor, require the maximum levy to be made as 423.19 required in this subdivision. Interest on capital loans must be 423.20 paid on December 15 of the year after the year the loan is 423.21 granted and annually in later years.On or beforeBy September 423.22 30in each year, the commissioner shall notify the county 423.23 auditor of each county containing taxable property situated 423.24 within theschooldistrict of the amount of the maximum effort 423.25 debt service levy of the district for that year. The county 423.26 auditor or auditors shall extend upon the tax rolls an ad 423.27 valorem tax upon all taxable property within the district in the 423.28 aggregate amount so certified. 423.29 Sec. 57. Minnesota Statutes 1996, section 124.431, 423.30 subdivision 12, is amended to read: 423.31 Subd. 12. [LOAN FORGIVENESS.] If any capital loan is not 423.32 paid within 50 years after it is granted from maximum effort 423.33 debt service levies in excess of required debt service levies, 423.34 the liability of theschooldistrict on the loan is satisfied 423.35 and discharged and interest on the loan ceases. 423.36 Sec. 58. Minnesota Statutes 1996, section 124.431, 424.1 subdivision 13, is amended to read: 424.2 Subd. 13. [PARTICIPATION BY COUNTY AUDITOR; RECORD OF 424.3 CONTRACT; PAYMENT OF LOAN.] Theschooldistrictshallmust file 424.4 a copy of the capital loan contract with the county auditor of 424.5 each county in which any part of the district is situated. The 424.6 county auditor shall enter the capital loan, evidenced by the 424.7 contract, in the auditor's bond register. The commissioner 424.8 shall keep a record of each capital loan and contract showing 424.9 the name and address of the district, the date of the contract, 424.10 and the amount of the loan initially approved. On receipt of 424.11 the resolution required in subdivision 11, the commissioner 424.12 shall issue warrants, which may be dispersed in accordance with 424.13 the schedule in the contract, on the capital loan account for 424.14 the amount that may be disbursed under subdivision 1. Interest 424.15 on each disbursement of the capital loan amount accrues from the 424.16 date on which the state treasurer issues the warrant. 424.17 Sec. 59. Minnesota Statutes 1996, section 124.431, 424.18 subdivision 14, is amended to read: 424.19 Subd. 14. [BOND SALE LIMITATIONS.] A district having an 424.20 outstanding state loan must not issue and sell any bonds on the 424.21 public market, except to refund state loans, unless it agrees to 424.22 make the maximum effort debt service levy in each later year at 424.23 the higher rate provided in section 124.38, subdivision 7, and 424.24 unless it schedules the maturities of the bonds according to 424.25 section 475.54, subdivision 2. A district that refunds bonds at 424.26 a lower interest rate may continue to make the maximum effort 424.27 debt service levy in each later year at the current rate 424.28 provided in section 124.38, subdivision 7, if the district can 424.29 demonstrate to the commissioner's satisfaction that the 424.30 district's repayments of the state loan will not be reduced 424.31 below the previous year's level. The districtshallmust report 424.32 each sale to the commissionerof children, families, and424.33learning. 424.34 After a district's capital loan has been outstanding for 20 424.35 years, the district must not issue bonds on the public market 424.36 except to refund the loan. 425.1 Sec. 60. Minnesota Statutes 1996, section 124.44, is 425.2 amended to read: 425.3 124.44 [PREPAYMENTS.] 425.4Any schoolA district may at any time pay the entire 425.5 principal or part thereof and interest then due on a note or 425.6 contract held by the state, out of any moneys not needed for 425.7 school purposes, and. The district may issue and sell its 425.8 refunding bonds in accordance with chapter 475, for such 425.9 purpose, by actions of its school board and without the 425.10 necessity of a vote by its electors, if such refunding bonds 425.11 plus its net debt does not exceed the debt limit prescribed 425.12 bysaidchapter 475. Any such refunding bonds may bear interest 425.13 at a rate or rates higher or lower than the rate payable on the 425.14 loan or loans refunded thereby. 425.15 Sec. 61. Minnesota Statutes 1997 Supplement, section 425.16 124.45, subdivision 2, is amended to read: 425.17 Subd. 2. [APPLICATION OF PAYMENTS.] The commissioner shall 425.18 apply payments received under the maximum effort school aid law 425.19 and aids withheld according to subdivision 1, paragraph (b), as 425.20 follows: First, to payment of interest accrued on its notes, if 425.21 any; second, to interest on its contracts, if any; third, toward 425.22 principal of its notes, if any; and last, toward principal of 425.23 its contracts, if any. While more than one note or more than 425.24 one contract is held, priority of payment of interestshallmust 425.25 be given to the one of earliest date, and after interest accrued 425.26 on all notes is paid, similar priority shall be given in the 425.27 application of any remaining amount to the payment of 425.28 principal. In any year when the receipts from a district are 425.29 not sufficient to pay the interest accrued on any of its notes 425.30 or contracts, the deficiencyshallmust be added to the 425.31 principal, and the commissioner shall notify the district and 425.32 each county auditor concerned of the new amount of principal of 425.33 the note or contract. 425.34 Sec. 62. Minnesota Statutes 1996, section 124.46, as 425.35 amended by Laws 1997, chapter 187, article 5, section 17, is 425.36 amended to read: 426.1 124.46 [ISSUANCE AND SALE OF BONDS.] 426.2 Subdivision 1. [CERTIFICATION.] On or before October 1 in 426.3 each year, the commissioner shall certify to the commissioner of 426.4 finance the amount anticipated to be needed for debt service 426.5 loans and capital loans to be made under the maximum effort 426.6 school aid law prior to October 1 in the following year. Each 426.7 such certification of the commissioner shall also state an 426.8 estimate of the dates and amounts the certified amount will be 426.9 needed in the maximum effort school loan fund and an estimate as 426.10 to the years and amounts in which payments on debt service loans 426.11 and capital loans will be received. 426.12 Subd. 2. [ISSUANCE AND SALE OF BONDS; COMMISSIONER OF 426.13 FINANCE.] Upon receipt of each such certification, subject to 426.14 authorization as provided in subdivision 4, the commissioner of 426.15 finance shall from time to time as needed issue and sell state 426.16 of Minnesota school loan bonds in the aggregate principal amount 426.17 stated in the commissioner's certificate, for the prompt and 426.18 full payment of which, with the interest thereon, the full 426.19 faith, credit, and taxing powers of the state are hereby 426.20 irrevocably pledged, and. The commissioner of finance shall 426.21 credit the net proceeds oftheirthe sale of the bonds to the 426.22 purposes for which they are appropriated by section 124.40, 426.23 subdivision 1.SuchThe bonds shall be issued and sold at such 426.24 price, in such manner, in such number of series, at such times, 426.25 and in such form and denominations, shall bear such dates of 426.26 issue and of maturity, either without option of prior redemption 426.27 or subject to prepayment upon such notice and at such times and 426.28 prices, shall bear interest at such rate or rates and payable at 426.29 such intervals, shall be payable at such bank or banks within or 426.30 without the state, with such provisions for registration, 426.31 conversion, and exchange, and for the issuance of notes in 426.32 anticipation of the sale and delivery of definitive bonds, and 426.33 in accordance with such further provisions as the commissioner 426.34 of finance shall determine subject to the limitations stated in 426.35 this subdivision (but not subject to chapter 14, including 426.36 section 14.386). The maturity dateshall in no casemust not be 427.1 more than 20 years after the date of issue of any bond and the 427.2 principal amountsand. The due datesshallmust conform as near 427.3 as may be with the commissioner's estimates of dates and amounts 427.4 of payments to be received on debt service and capital loans. 427.5 The bonds and any interest couponsappurtenantattached to them 427.6shallmust be executed by the commissioner of finance and 427.7 attested by the state treasurer under their official seals. The 427.8 signatures of these officers and their seals may be printed, 427.9 lithographed, stamped, engraved, or otherwise reproduced 427.10 thereon. Each bondshallmust be authenticated by the manual 427.11 signature on its face of one of the officers or a person 427.12 authorized to sign on behalf of a bank or trust company 427.13 designated by the commissioner to act as registrar or other 427.14 authenticating agent. The commissioner of finance is authorized 427.15 and directed to ascertain and certify to purchasers of the bonds 427.16 the performance and existence of all acts, conditions, and 427.17 things necessary to make them valid and binding general 427.18 obligations of the state of Minnesota in accordance with their 427.19 terms. 427.20 Subd. 3. [SCHOOL LOAN BOND ACCOUNT.] The commissioner of 427.21 finance shall maintain a separate school loan bond account in 427.22 the state bond fund, showing all money transferred to that fund 427.23 for the payment of school loan bonds and all income received 427.24 from the investment of such money. Onthe first day ofDecember 427.25in each year there1, the commissioner of finance shallbe427.26transferredtransfer to the bond accountall or soas much of 427.27 the money then on hand in the loan repayment account in the 427.28 maximum effort school loan fund as will be sufficient, with the 427.29 balance then on hand in said bond account, to pay all principal 427.30 and interestthen and theretoforedue and to become due within 427.31 the next ensuing year andto and includingJuly 1 in the second 427.32 ensuing year on school loan bonds issued and sold pursuant to 427.33 this section.In the event that moneys areIf money is not 427.34 available forsuchthe transfer in the full amount required, and 427.35 if any principal or interest on school loan bonds should become 427.36 due at any time when there is not on hand a sufficient amount 428.1 from any of the sources herein appropriated for the payment 428.2 thereof, the moneysshallmust be paid out of the general fund 428.3 in the state treasury according to section 16A.641, and the 428.4 amount necessary therefor is hereby appropriated. 428.5 Subd. 4. [AUTHORITY FOR ISSUANCE OF BONDS.] Bonds shall be 428.6 issued pursuant to this section only when authorized by a law 428.7 specifying the purpose thereof and the maximum amount of the 428.8 proceeds authorized to be expended for that purpose. Any act 428.9 authorizing the issuance of bonds in the manner provided in this 428.10 section shall, together with this section, constitute complete 428.11 authority for the issue, and the bonds shall not be subject to 428.12 the restrictions or limitations contained in any other law. 428.13 Bonds issued pursuant hereto may be sold at public or private 428.14 sale and shall be deemed "authorized securities" within the 428.15 provisions of section 50.14 and acts amendatory thereof or 428.16 supplemental thereto. 428.17 Sec. 63. Minnesota Statutes 1996, section 124.492, is 428.18 amended to read: 428.19 124.492 [POLICY AND PURPOSE.] 428.20 Because of the rates of decline in school-aged population, 428.21 population shifts and economic changes that the state has 428.22 experienced in recent years and anticipates in future years, and 428.23 because in some instances localschooldistricts have not, and 428.24 will not be able to provide the required construction funds 428.25 through local property taxes, the purpose of the cooperative 428.26 secondary facilities grant program is to provide an incentive to 428.27 encourage cooperation in making available to all secondary 428.28 students those educational programs, services and facilities 428.29 that are most efficiently and effectively provided by a 428.30 cooperative effort of several school districts. The policy and 428.31 purpose of sections 124.493 to 124.495 is to use the credit of 428.32 the state, to a limited degree, to provide grants to cooperating 428.33 groups ofschooldistricts to improve and expand the educational 428.34 opportunities and facilities available to their secondary 428.35 students. 428.36 Sec. 64. Minnesota Statutes 1996, section 124.493, 429.1 subdivision 1, is amended to read: 429.2 Subdivision 1. [APPROVAL BY COMMISSIONER.] To the extent 429.3 money is available, the commissionerof children, families, and429.4learningmay approve projects from applications submitted under 429.5 section 124.494. The grant money must be used only to acquire, 429.6 construct, remodel or improve the building or site of a 429.7 cooperative secondary facility under contracts to be entered 429.8 into within 15 months after the date on which each grant is 429.9 awarded. 429.10 Sec. 65. Minnesota Statutes 1996, section 124.494, 429.11 subdivision 1, is amended to read: 429.12 Subdivision 1. [QUALIFICATION.] Any group ofschool429.13 districts that meets the criteria required under subdivision 2 429.14 may apply for an incentive grant for construction of a new 429.15 secondary facility or for remodeling and improving an existing 429.16 secondary facility. A grant for new construction must not 429.17 exceed the lesser of $5,000,000 or 75 percent of the approved 429.18 construction costs of a cooperative secondary education 429.19 facility. A grant for remodeling and improving an existing 429.20 facility must not exceed $200,000. 429.21 Sec. 66. Minnesota Statutes 1996, section 124.494, 429.22 subdivision 2, is amended to read: 429.23 Subd. 2. [REVIEW BY COMMISSIONER.] (a)AnyA group of 429.24 districts that submits an application for a grantshallmust 429.25 submit a proposal to the commissioner for review and comment 429.26 under section 121.15, and. The commissioner shall prepare a 429.27 review and comment on the proposed facility by July 1 of an 429.28 odd-numbered year, regardless of the amount of the capital 429.29 expenditure required to acquire, construct, remodel or improve 429.30 the secondary facility. The commissionermustshall not approve 429.31 an application for an incentive grant for any secondary facility 429.32 unless the facility receives a favorable review and comment 429.33 under section 121.15 and the following criteria are met: 429.34 (1) a minimum of two or more districts, with kindergarten 429.35 to grade 12 enrollments in each district of no more than 1,200 429.36 pupils, enter into a joint powers agreement; 430.1 (2) a joint powers board representing all participating 430.2 districts is established under section 471.59 to govern the 430.3 cooperative secondary facility; 430.4 (3) the planned secondary facility will result in the joint 430.5 powers district meeting the requirements of Minnesota Rules, 430.6 parts 3500.2010 and 3500.2110; 430.7 (4) at least 198 pupils would be served in grades 10 to 12, 430.8 264 pupils would be served in grades 9 to 12, or 396 pupils 430.9 would be served in grades 7 to 12; 430.10 (5) no more than one superintendent is employed by the 430.11 joint powers board as a result of the cooperative secondary 430.12 facility agreement; 430.13 (6) a statement of need is submitted, that may include 430.14 reasons why the current secondary facilities are inadequate, 430.15 unsafe or inaccessible to the handicapped; 430.16 (7) an educational plan is prepared, that includes input 430.17 from both community and professional staff; 430.18 (8) a combined seniority list for all participating 430.19 districts is developed by the joint powers board; 430.20 (9) an education program is developed that provides for 430.21 more learning opportunities and course offerings, including the 430.22 offering of advanced placement courses, for students than is 430.23 currently available in any single member district; 430.24 (10) a plan is developed for providing instruction of any 430.25 resident students in other districts when distance to the 430.26 secondary education facility makes attendance at the facility 430.27 unreasonably difficult or impractical; and 430.28 (11) the joint powers board established under clause (2) 430.29 discusses with technical colleges located in the area how 430.30 vocational education space in the cooperative secondary facility 430.31 could be jointly used for secondary and post-secondary purposes. 430.32 (b) To the extent possible, the joint powers board is 430.33 encouraged to provide for severance pay or for early retirement 430.34 incentives under section 125.611, for any teacher or 430.35 administrator, as defined under section 125.12, subdivision 1, 430.36 who is placed on unrequested leave as a result of the 431.1 cooperative secondary facility agreement. 431.2 (c) For the purpose of paragraph (a), clause (8), each 431.3schooldistrict must be considered to have started school each 431.4 year on the same date. 431.5 (d) The districts may develop a plan that provides for the 431.6 location of social service, health, and other programs serving 431.7 pupils and community residents within the cooperative secondary 431.8 facility. The commissioner shall consider this plan when 431.9 preparing a review and comment on the proposed facility. 431.10 (e) The districtsshallmust schedule and conduct a meeting 431.11 on library services. The school districts, in cooperation with 431.12 the regional public library system and its appropriate member 431.13 libraries,shallmust discuss the possibility of including 431.14 jointly operated library services at the cooperative secondary 431.15 facility. 431.16 (f) Theschoolboard of a district that has reorganized 431.17 under section 122.23 or 122.243 and that is applying for a grant 431.18 for remodeling or improving an existing facility may act in the 431.19 place of a joint powers board to meet the criteria of this 431.20 subdivision. 431.21 Sec. 67. Minnesota Statutes 1996, section 124.494, 431.22 subdivision 2a, is amended to read: 431.23 Subd. 2a. [REORGANIZING DISTRICTS.] Aschooldistrict that 431.24 is a member of a joint powers board established under 431.25 subdivision 2 and that is planning to reorganize under section 431.26 122.21, 122.22, or 122.23 must notify the joint powers board one 431.27 year in advance of the effective date of the reorganization. 431.28 Notwithstanding section 471.59 or any other law to the contrary, 431.29 the board of a district that reorganizes under section 122.21, 431.30 122.22, or 122.23 may appoint representatives to the joint 431.31 powers board who will serve on the joint powers board for two 431.32 years after the effective date of the reorganization if 431.33 authorized in the agreement establishing the joint powers board 431.34 to govern the cooperative secondary facility. These 431.35 representatives shall have the same powers as representatives of 431.36 any other school district under the joint powers agreement. 432.1 Sec. 68. Minnesota Statutes 1996, section 124.494, 432.2 subdivision 3, is amended to read: 432.3 Subd. 3. [DISTRICT PROCEDURES.] A joint powers board of a 432.4 secondary district established under subdivision 2 or a school 432.5 board of a reorganized district that intends to apply for a 432.6 grantshallmust adopt a resolution stating the proposed costs 432.7 of the project, the purpose for which the costs are to be 432.8 incurred, and an estimate of the dates when the facilities for 432.9 which the grant is requested will be contracted for and 432.10 completed. Applications for the state grants must be 432.11 accompanied by (a) a copy of the resolution, (b) a certificate 432.12 by the clerk and treasurer of the joint powers board showing the 432.13 current outstanding indebtedness of each member district, and 432.14 (c) a certificate by the county auditor of each county in which 432.15 a portion of the joint powers district lies showing the 432.16 information in the auditor's official records that is required 432.17 to be used in computing the debt limit of the district under 432.18 section 475.53, subdivision 4. The clerk's and treasurer's 432.19 certificateshallmust show, as to each outstanding bond issue 432.20 of each member district, the amount originally issued, the 432.21 purpose for which issued, the date of issue, the amount 432.22 remaining unpaid as of the date of the resolution, and the 432.23 interest rates and due dates and amounts of principal thereon. 432.24 Applications and necessary data must be in the form prescribed 432.25 by the commissioner and the rules of the state board of 432.26 education. Applications must be received by the commissioner by 432.27 September 1 of an odd-numbered year. When an application is 432.28 received, the commissioner shall obtain from the commissioner of 432.29 revenue, and from the public utilities commission when required, 432.30 the information in their official records that is required to be 432.31 used in computing the debt limit of the joint powers district 432.32 under section 475.53, subdivision 4. 432.33 Sec. 69. Minnesota Statutes 1996, section 124.494, 432.34 subdivision 5, is amended to read: 432.35 Subd. 5. [REFERENDUM; BOND ISSUE.] Within 180 days after 432.36 being awarded a grant for a new facility under subdivision 4, 433.1 the joint powers boardshallmust submit the question of 433.2 authorizing the borrowing of funds for the secondary facility to 433.3 the voters of the joint powers district at a special election, 433.4 which may be held in conjunction with the annual election of the 433.5 school board members of the member districts. The question 433.6 submittedshallmust state the total amount of funding needed 433.7 from all sources. A majority of those voting in the affirmative 433.8 on the question is sufficient to authorize the joint powers 433.9 board to accept the grant and to issue the bonds on public sale 433.10 in accordance with chapter 475. The clerk of the joint powers 433.11 board must certify the vote of the bond election to the 433.12 commissionerof children, families, and learning. If the 433.13 question is approved by the voters, the commissioner shall 433.14 notify the approved applicant districts that the grant amount 433.15 certified under subdivision 4 is available and appropriated for 433.16 payment under this subdivision. If a majority of those voting 433.17 on the question do not vote in the affirmative, the grant must 433.18 be canceled. 433.19 Sec. 70. Minnesota Statutes 1996, section 124.494, 433.20 subdivision 7, is amended to read: 433.21 Subd. 7. [CONSOLIDATION.] A group of districts that 433.22 operates a cooperative secondary facility that was acquired, 433.23 constructed, remodeled, or improved under this section and 433.24 implements consolidation proceedings according to section 433.25 122.23, may propose a temporary school board structure in the 433.26 petition or resolution required under section 122.23, 433.27 subdivision 2. The districts may propose the number of existing 433.28 school board members of each district to become members of the 433.29schoolboard of the consolidated district and a method to 433.30 gradually reduce the membership to six or seven. The proposal 433.31shallmust be approved, disapproved, or modified by the state 433.32 board of education. The election requirements of section 433.33 122.23, subdivision 18, do not apply to a proposal approved by 433.34 the state board. Elections conducted after the effective date 433.35 of the consolidation are subject to the Minnesota election law. 433.36 Sec. 71. Minnesota Statutes 1996, section 124.4945, is 434.1 amended to read: 434.2 124.4945 [LEVY FOR SEVERANCE PAY.] 434.3 A joint powers board established under section 124.494 may 434.4 make a levy to provide severance pay and early retirement 434.5 incentives under section 125.611, for any teacher as defined 434.6 under section 125.12, subdivision 1, who is placed on 434.7 unrequested leave as a result of the cooperative secondary 434.8 facility agreement. A joint powers board making a levyshall434.9 must certify to each participating district tax levies 434.10 sufficient to raise the amount necessary to provide the 434.11 district's portion of severance pay and early retirement 434.12 incentives. The tax levy certified to each district must be 434.13 expressed as a local tax rate, that, when applied to the 434.14 adjusted net tax capacity of all of the participating districts 434.15 raises the amount necessary to provide severance pay and early 434.16 retirement incentives. Each participating school districtshall434.17 must include the levy in the next tax roll which it shall 434.18 certify to the county auditor, andshallmust remit the 434.19 collections of the levy to the joint powers board. 434.20 Sec. 72. Minnesota Statutes 1996, section 124.646, is 434.21 amended to read: 434.22 124.646 [LUNCH AID; FOOD SERVICE ACCOUNTING.] 434.23 Subdivision 1. [SCHOOL LUNCH AID COMPUTATION.] Each school 434.24 year,schoolthe state must pay districts participating in the 434.25 national school lunch programshall be paid by the state inthe 434.26 amount of 6.5 cents for each full paid, reduced, and free 434.27 student lunch served to students in the district. 434.28 Subd. 3. [APPLICATION.] School districts shall apply to 434.29 the departmentof children, families, and learningfor this 434.30 payment on forms provided by the department. 434.31 Subd. 4. [SCHOOL FOOD SERVICE FUND.] (a) The expenses 434.32 described in this subdivision must be recorded as provided in 434.33 this subdivision. 434.34 (b) In eachschooldistrict, the expenses for a school food 434.35 service program for pupils must be attributed to a school food 434.36 service fund. Under a food service program, the school food 435.1 service may prepare or serve milk, meals, or snacks in 435.2 connection with school or community service activities. 435.3 (c) Revenues and expenditures for food service activities 435.4 must be recorded in the food service fund. The costs of 435.5 processing applications, accounting for meals, preparing and 435.6 serving food, providing kitchen custodial services, and other 435.7 expenses involving the preparing of meals or the kitchen section 435.8 of the lunchroom may be charged to the food service fund or to 435.9 the general fund of the district. The costs of lunchroom 435.10 supervision, lunchroom custodial services, lunchroom utilities, 435.11 and other administrative costs of the food service program must 435.12 be charged to the general fund. 435.13 That portion of superintendent and fiscal manager costs 435.14 that can be documented as attributable to the food service 435.15 program may be charged to the food service fund provided that 435.16 the school district does not employ or contract with a food 435.17 service director or other individual who manages the food 435.18 service program, or food service management company. If the 435.19 cost of the superintendent or fiscal manager is charged to the 435.20 food service fund, the charge must be at a wage rate not to 435.21 exceed the statewide average for food service directors as 435.22 determined by the departmentof children, families, and learning. 435.23 (d) Capital expenditures for the purchase of food service 435.24 equipment must be made from the capital fund and not the food 435.25 service fund, unless two conditions apply: 435.26 (1) the unreserved balance in the food service fund at the 435.27 end of the last fiscal year is greater than the cost of the 435.28 equipment to be purchased; and 435.29 (2) the departmentof children, families, and learninghas 435.30 approved the purchase of the equipment. 435.31 (e) If the two conditions set out in paragraph (d) apply, 435.32 the equipment may be purchased from the food service fund. 435.33 (f) If a deficit in the food service fund exists at the end 435.34 of a fiscal year, and the deficit is not eliminated by revenues 435.35 from food service operations in the next fiscal year, then the 435.36 deficit must be eliminated by a permanent fund transfer from the 436.1 general fund at the end of that second fiscal year. However, if 436.2 a district contracts with a food service management company 436.3 during the period in which the deficit has accrued, the deficit 436.4 must be eliminated by a payment from the food service management 436.5 company. 436.6 (g) Notwithstanding paragraph (f), a district may incur a 436.7 deficit in the food service fund for up to three years without 436.8 making the permanent transfer if the district submits to the 436.9 commissioner by January 1 of the second fiscal year a plan for 436.10 eliminating that deficit at the end of the third fiscal year. 436.11 (h) If a surplus in the food service fund exists at the end 436.12 of a fiscal year for three successive years, a district may 436.13 recode for that fiscal year the costs of lunchroom supervision, 436.14 lunchroom custodial services, lunchroom utilities, and other 436.15 administrative costs of the food service program charged to the 436.16 general fund according to paragraph (c) and charge those costs 436.17 to the food service fund in a total amount not to exceed the 436.18 amount of surplus in the food service fund. 436.19 Sec. 73. Minnesota Statutes 1996, section 124.6462, is 436.20 amended to read: 436.21 124.6462 [LACTOSE REDUCED MILK.] 436.22 If a nonpublic school orschooldistrict 436.23 (1) receives school lunch aid under section 124.646 or 436.24 participates in the school breakfast program; and 436.25 (2) receives a written request from the parent of a pupil 436.26 who is lactose intolerant, the nonpublic school orschool436.27 districtshallmust make available lactose reduced milk; milk 436.28 fortified with lactase in liquid, tablet, granular, or other 436.29 form; or milk to which lactobacillus acidophilus has been added 436.30 for the pupil. Notwithstanding any law, local ordinance, or 436.31 local regulation to the contrary, a school may pour or serve 436.32 portions of any product required by this section from a large 436.33 container of the product at the time and place the pupil is 436.34 being served. 436.35 Sec. 74. Minnesota Statutes 1996, section 124.6469, 436.36 subdivision 3, is amended to read: 437.1 Subd. 3. [PROGRAM REIMBURSEMENT.] (a) State funds are 437.2 provided to reimburse school breakfasts. Each school year, the 437.3 stateshallmust reimburse schools in the amount of 5.1 cents 437.4 for each fully paid breakfast and for each free and reduced 437.5 price breakfast not eligible for the "severe need" rate. 437.6 (b) In addition to paragraph (a), each school year the 437.7 stateshallmust reimburse schools 10.5 cents for each free and 437.8 reduced price breakfast not eligible for the "severe need" rate 437.9 if between 33 and 40 percent of the school lunches served during 437.10 the second preceding school year were served free or at a 437.11 reduced price. 437.12 Sec. 75. Minnesota Statutes 1996, section 124.647, is 437.13 amended to read: 437.14 124.647 [WAIVER; PILOT SCHOOL BREAKFAST PROGRAMS.] 437.15 The commissionerof children, families, and learningshall 437.16 request a waiver from the United States government as necessary 437.17 to allow pilot school breakfast programs to be implemented in 437.18schooldistricts where no program currently exists. The pilot 437.19 school breakfast programshallmust provide students with 437.20 breakfasts designed to be taken with the student and consumed 437.21 away from the school site. 437.22 Sec. 76. Minnesota Statutes 1996, section 124.6471, is 437.23 amended to read: 437.24 124.6471 [SCHOOL BREAKFAST INCENTIVE.] 437.25 The commissionerof children, families, and learningmay 437.26 provide a cash incentive to schools to increase participation in 437.27 school breakfast programs or to initiate a school breakfast 437.28 program if none currently exists. 437.29 Sec. 77. Minnesota Statutes 1996, section 124.6472, is 437.30 amended to read: 437.31 124.6472 [SCHOOL BREAKFASTDISTRICTS TO OFFER PROGRAM.] 437.32 Subdivision 1. [BREAKFAST REQUIRED.] Aschooldistrict 437.33shallmust offer a school breakfast program in every school 437.34 building in which at least 33 percent of the school lunches 437.35 served during the second preceding school year were served free 437.36 or at a reduced price. 438.1 Subd. 2. [EXEMPTION.] Subdivision 1 does not apply to a 438.2 school in which fewer than 25 pupils are expected to take part 438.3 in the program. It also does not apply to aschooldistrict 438.4 that does not participate in the national school lunch program. 438.5 Sec. 78. Minnesota Statutes 1996, section 124.648, as 438.6 amended by Laws 1997, chapter 187, article 4, section 4, is 438.7 amended to read: 438.8 124.648 [MILK PROGRAM.] 438.9 Subdivision 1. [LEGISLATIVE FINDINGS.] The legislature 438.10 finds that for best health and well-being, school children in 438.11 the state should receive at least one serving of milk each day. 438.12 The school milk program established in this section is to 438.13 provideschooldistricts in the state with added resources so 438.14 that all kindergarten students in public and nonpublic schools 438.15 may have access to wholesome milk on a daily basis. 438.16 Subd. 2. [ESTABLISHMENT; SCHOOL PARTICIPATION.] Each 438.17schooldistrict in the state is encouraged to participate in the 438.18 state-supported school milk program for kindergartners. 438.19 Participating districtsshallmust provide one serving of milk 438.20 on each school day to each kindergarten student attending a 438.21 public or nonpublic school in the district. No student is 438.22 required to accept the milk that is provided by the district. 438.23 The program must be promoted and operated under the direction of 438.24 the commissioner or the commissioner's designee. 438.25 Subd. 3. [PROGRAM GUIDELINES; DUTIES OF THE COMMISSIONER.] 438.26 (a) The commissioner shall: 438.27 (1) encourage all districts to participate in the school 438.28 milk program for kindergartners; 438.29 (2) prepare program guidelines, not subject to chapter 14 438.30 until July 1, 1998, which will effectively and efficiently 438.31 distribute appropriated and donated money to participating 438.32 districts; and 438.33 (3) seek donations and matching funds from appropriate 438.34 private and public sources. 438.35 (b) Program guidelines may provide for disbursement to 438.36 districts through a mechanism of prepayments or by reimbursement 439.1 for approved program expenses. 439.2 (c) It is suggested that the benefits of the school milk 439.3 program may reach the largest number of kindergarten students if 439.4 districts are allowed to submit annual bids stating the 439.5 per-serving level of support that would be acceptable to the 439.6districtdistricts for their participation in the program. The 439.7 commissioner would review all bids received and approve bids in 439.8 sufficient number and value to maximize the provision of milk to 439.9 kindergarten students consistent with available funds. 439.10 Subd. 4. [REIMBURSEMENT.] In accordance with program 439.11 guidelines, the commissioner shall prepay or reimburse 439.12 participatingschooldistricts for the state share of the 439.13 district's cost for providing milk to kindergarten students. 439.14 Sec. 79. Minnesota Statutes 1996, section 124.71, 439.15 subdivision 1, is amended to read: 439.16Subdivision 1.School district as used in sections 124.71 439.17 to 124.76 means any school district in the state of Minnesota, 439.18 however organized and wherever located. 439.19 Sec. 80. Minnesota Statutes 1996, section 124.72, is 439.20 amended to read: 439.21 124.72 [APPLICATION OF LIMITING TAX LEGISLATION.] 439.22 Notwithstanding the provisions of section 471.69 or section 439.23 471.75, or of any other provision of law which by per capita 439.24 limitation, local tax rate limitation, or otherwise, limits the 439.25 power of aschooldistrict to incur any debt or to issue any 439.26 warrant or order, aschooldistrict has the powers in sections 439.27 124.71 to 124.76 specifically conferred upon it and all powers 439.28 incident and necessary to carrying out the purposes of sections 439.29 124.71 to 124.76. 439.30 Sec. 81. Minnesota Statutes 1996, section 124.73, is 439.31 amended to read: 439.32 124.73 [AUTHORITY TO BORROW MONEY,; LIMITATIONS.] 439.33 Subdivision 1. [BORROWING AUTHORITY.] The board of any 439.34 school district may borrow money upon negotiable tax 439.35 anticipation certificates of indebtedness, in the manner and 439.36 subject to the limitations set forth in sections 124.71 to 440.1 124.76, for the purpose of anticipating general 440.2 taxestheretoforealready levied by the district for school 440.3 purposes, but. The aggregate ofsuchthe borrowing under this 440.4 subdivisionshallmust never exceed 75 percent ofsuchthe taxes 440.5 which are due and payable in the calendar year, and as to which 440.6 taxes no penalty for nonpayment or delinquency has attached. In 440.7 determining the amount of taxes due and payable in the calendar 440.8 year, any amounts paid by the state to replace such taxes, 440.9 whether paid in that calendar year or not,shallmust be 440.10 included. 440.11 Subd. 2. [LIMITATIONS.] The board may also borrow money in 440.12 the manner and subject to the limitations set forth in sections 440.13 124.71 to 124.76 in anticipation of receipt of state aids for 440.14 schools as defined in Minnesota Statutes and of federal school 440.15 aids to be distributed by or through the departmentof children,440.16families, and learning. The aggregate of such borrowings under 440.17 this subdivision shall never exceed 75 percent of such aids 440.18 which are receivable by said school district in the school year 440.19 (from July 1 to June 30) in which the money is borrowed, as 440.20 estimated and certified by the commissioner. 440.21 Sec. 82. Minnesota Statutes 1996, section 124.74, is 440.22 amended to read: 440.23 124.74 [ENABLING RESOLUTION; FORM OF CERTIFICATES OF 440.24 INDEBTEDNESS.] 440.25 The board may authorize and effect such borrowing, and may 440.26 issue such certificates of indebtedness upon passage of a 440.27 resolution specifying the amount and purposes for which it deems 440.28 such borrowing is necessary, which. The resolutionshallmust 440.29 be adopted by a vote of at least two-thirds of its members. The 440.30 boardshallmust fix the amount, date, maturity, form, 440.31 denomination, and other detailsthereofof the certificates of 440.32 indebtedness, not inconsistentherewith, and shallwith this 440.33 chapter. The board must fix the date and place for receipt of 440.34 bids for the purchasethereofof the certificates when bids are 440.35 required and direct the clerk to give noticethereofof the date 440.36 and place for bidding. 441.1 Sec. 83. Minnesota Statutes 1996, section 124.75, is 441.2 amended to read: 441.3 124.75 [REPAYMENT; MATURITY DATE OF CERTIFICATES; 441.4 INTEREST.] 441.5 The proceeds of the current tax levies and future state aid 441.6 receipts or other school funds which may become availableshall441.7 must be applied to the extent necessary to repay such 441.8 certificates and the full faith and credit of theschool441.9 district shall bepledgedtotheirpayment of the certificates. 441.10 Certificates issued in anticipation of receipt of aids shall 441.11 mature not later than the anticipated date of receipt of the 441.12 aidsso anticipatedas estimated by the commissioner, but in no 441.13 event later than three months after the close of the school year 441.14 in which issued. Certificates issued in anticipation of receipt 441.15 of taxes shall mature not later than the anticipated date of 441.16 receipt in full of the taxesso anticipated, but in no event 441.17 later than three months after the close of the calendar year in 441.18 which issued. The certificatesshallmust be sold at not less 441.19 than par. The certificatesshallmust bear interest after 441.20 maturity until paid at the rate they bore before maturity and 441.21 any interest accruing before or after maturityshallmust be 441.22 paid from any available school funds. 441.23 Sec. 84. Minnesota Statutes 1996, section 124.755, 441.24 subdivision 2, is amended to read: 441.25 Subd. 2. [NOTIFICATIONS; PAYMENT; APPROPRIATION.] (a) If a 441.26schooldistrict believes that it may be unable to make a 441.27 principal or interest payment on any outstanding debt obligation 441.28 on the date that payment is due, it must notify the commissioner 441.29of children, families, and learning of that factas soon as 441.30 possible, but not less than 15 working days before the date that 441.31 principal or interest payment is due. The noticeshallmust 441.32 include the name of theschooldistrict, an identification of 441.33 the debt obligation issue in question, the date the payment is 441.34 due, the amount of principal and interest due on the payment 441.35 date, the amount of principal or interest that theschool441.36 district will be unable to repay on that date, the paying agent 442.1 for the debt obligation, the wire transfer instructions to 442.2 transfer funds to that paying agent, and an indication as to 442.3 whether a payment is being requested by the district under this 442.4 section. If a paying agent becomes aware of a potential 442.5 default, it shall inform the commissionerof children, families,442.6and learningof that fact. After receipt of a notice which 442.7 requests a payment under this section, after consultation with 442.8 theschooldistrict and the paying agent, and after verification 442.9 of the accuracy of the information provided, the commissionerof442.10children, families, and learningshall notify the commissioner 442.11 of finance of the potential default. The notice must include a 442.12 final figure as to the amount due that the district will be 442.13 unable to repay on the date due. 442.14 (b) Except as provided in subdivision 9, upon receipt of 442.15 this notice from the commissionerof children, families, and442.16learning, which must include a final figure as to the amount due442.17that the school district will be unable to repay on the date442.18due, the commissioner of finance shall issue a warrant and 442.19 authorize the commissioner of children, families, and learning 442.20 to pay to the paying agent for the debt obligation the specified 442.21 amount on or before the date due. The amounts needed for the 442.22 purposes of this subdivision are annually appropriated to the 442.23 departmentof children, families, and learningfrom the state 442.24 general fund. 442.25 (c) The departments of children, families, and learning and 442.26 financeshallmust jointly develop detailed procedures for 442.27schooldistricts to notify the state that they have obligated 442.28 themselves to be bound by the provisions of this section, 442.29 procedures forschooldistricts and paying agents to notify the 442.30 state of potential defaults and to request state payment under 442.31 this section, and procedures for the state to expedite payments 442.32 to prevent defaults. The procedures are not subject to chapter 442.33 14. 442.34 Sec. 85. Minnesota Statutes 1996, section 124.755, 442.35 subdivision 3, is amended to read: 442.36 Subd. 3. [SCHOOL DISTRICT BOUND; INTEREST RATE ON STATE 443.1 PAID AMOUNT.] If, at the request of aschooldistrict, the state 443.2 has paid part or all of the principal or interest due on a 443.3schooldistrict's debt obligation on a specific date, theschool443.4 district is bound by all provisions of this section and the 443.5 amount paid shall bear taxable interest from the date paid until 443.6 the date of repayment at the state treasurer's invested cash 443.7 rate as it is certified by the commissioner of finance. 443.8 Interest shall only accrue on the amounts paid and outstanding 443.9 less the reduction in aid under subdivision 4 and other payments 443.10 received from the district. 443.11 Sec. 86. Minnesota Statutes 1996, section 124.755, 443.12 subdivision 4, is amended to read: 443.13 Subd. 4. [PLEDGE OF DISTRICT'S FULL FAITH AND CREDIT.] If, 443.14 at the request of aschooldistrict, the state has paid part or 443.15 all of the principal or interest due on aschooldistrict's debt 443.16 obligation on a specific date, the pledge of the full faith and 443.17 credit and unlimited taxing powers of theschooldistrict to 443.18 repay the principal and interest due on those debt obligations 443.19 shall also, without an election or the requirement of a further 443.20 authorization, become a pledge of the full faith and credit and 443.21 unlimited taxing powers of theschooldistrict to repay to the 443.22 state the amount paid, with interest. Amounts paid by the state 443.23shallmust be repaid in the order in which the state payments 443.24 were made. 443.25 Sec. 87. Minnesota Statutes 1996, section 124.755, 443.26 subdivision 5, is amended to read: 443.27 Subd. 5. [AID REDUCTION FOR REPAYMENT.] Except as provided 443.28 in this subdivision, the stateshallmust reduce the state aid 443.29 payable to theschooldistrict under chapters 124, 124A, and 443.30 273, according to the schedule in section 124.155, subdivision 443.31 2, by the amount paid by the state under this section on behalf 443.32 of theschooldistrict, plus the interest due on it, and the 443.33 amount reducedshallmust revert from the appropriate account to 443.34 the state general fund. Payments from the school endowment fund 443.35 or any federal aid payments shall not be reduced. If, after 443.36 review of the financial situation of theschooldistrict, the 444.1 commissionerof children, families, and learningadvises the 444.2 commissioner of finance that a total reduction of the aids would 444.3 cause an undue hardship on or an undue disruption of the 444.4 educational program of theschooldistrict, the commissionerof444.5children, families, and learning, with the approval of the 444.6 commissioner of finance, may establish a different schedule for 444.7 reduction of those aids to repay the state. The amount of aids 444.8 to be reduced are decreased by any amounts repaid to the state 444.9 by the school district from other revenue sources. 444.10 Sec. 88. Minnesota Statutes 1996, section 124.755, 444.11 subdivision 6, is amended to read: 444.12 Subd. 6. [TAX LEVY FOR REPAYMENT.] (a) With the approval 444.13 of the commissionerof children, families, and learning, a 444.14schooldistrict may levy in the year the state makes a payment 444.15 under this section an amount up to the amount necessary to 444.16 provide funds for the repayment of the amount paid by the state 444.17 plus interest through the date of estimated repayment by the 444.18schooldistrict. The proceeds of this levy may be used only for 444.19 this purpose unless they are in excess of the amount actually 444.20 due, in which case the excess shall be used to repay other state 444.21 payments made under this section or shall be deposited in the 444.22 debt redemption fund of the school district. This levy shall be 444.23 an increase in the levy limits of theschooldistrict for 444.24 purposes of section 275.065, subdivision 6. The amount of aids 444.25 to be reduced to repay the state shall be decreased by the 444.26 amount levied. This levy by theschooldistrict is not eligible 444.27 for debt service equalization under section 124.95. 444.28 (b) If the state is not repaid in full for a payment made 444.29 under this section by November 30 of the calendar year following 444.30 the year in which the state makes the payment, the commissioner 444.31of children, families, and learning mustshall require the 444.32schooldistrict to certify a property tax levy in an amount up 444.33 to the amount necessary to provide funds for repayment of the 444.34 amount paid by the state plus interest through the date of 444.35 estimated repayment by the school district. To prevent undue 444.36 hardship, the commissioner may allow the district to certify the 445.1 levy over a five-year period. The proceeds of the levy may be 445.2 used only for this purpose unless they are in excess of the 445.3 amount actually due, in which case the excess shall be used to 445.4 repay other state payments made under this section or shall be 445.5 deposited in the debt redemption fund of theschooldistrict. 445.6 This levy shall be an increase in the levy limits of the school 445.7 district for purposes of section 275.065, subdivision 6. If the 445.8 commissioner orders the district to levy, the amount of aids 445.9 reduced to repay the state shall be decreased by the amount 445.10 levied. This levy by theschooldistrict is not eligible for 445.11 debt service equalization under section 124.95 or any successor 445.12 provision. A levy under this subdivision must be explained as a 445.13 specific increase at the meeting required under section 275.065, 445.14 subdivision 6. 445.15 Sec. 89. Minnesota Statutes 1996, section 124.755, 445.16 subdivision 7, is amended to read: 445.17 Subd. 7. [ELECTION AS TO MANDATORY APPLICATION.] Aschool445.18 district may covenant and obligate itself, prior to the issuance 445.19 of an issue of debt obligations, to notify the commissionerof445.20children, families, and learningof a potential default and to 445.21 use the provisions of this section to guarantee payment of the 445.22 principal and interest on those debt obligations when due. If 445.23 theschooldistrict obligates itself to be bound by this 445.24 section, itshallmust covenant in the resolution that 445.25 authorizes the issuance of the debt obligations to deposit with 445.26 the paying agent three business days prior to the date on which 445.27 a payment is due an amount sufficient to make that payment or to 445.28 notify the commissionerof children, families, and learning445.29 under subdivision 1 that it will be unable to make all or a 445.30 portion of that payment. Aschooldistrict that has obligated 445.31 itselfshallmust include a provision in its agreement with the 445.32 paying agent for that issue that requires the paying agent to 445.33 inform the commissionerof children, families, and learningif 445.34 it becomes aware of a potential default in the payment of 445.35 principal or interest on that issue or if, on the day two 445.36 business days prior to the date a payment is due on that issue, 446.1 there are insufficient funds to make the payment on deposit with 446.2 the paying agent. If aschooldistrict either covenants to be 446.3 bound by this section or accepts state payments under this 446.4 section to prevent a default of a particular issue of debt 446.5 obligations, the provisions of this section shall be binding as 446.6 to that issue as long as any debt obligation of that issue 446.7 remain outstanding. If the provisions of this section are or 446.8 become binding for more than one issue of debt obligations and a 446.9 district is unable to make payments on one or more of those 446.10 issues,it shallthe district must continue to make payments on 446.11 the remaining issues. 446.12 Sec. 90. Minnesota Statutes 1996, section 124.755, 446.13 subdivision 8, is amended to read: 446.14 Subd. 8. [MANDATORY PLAN; TECHNICAL ASSISTANCE.] If the 446.15 state makes payments on behalf of a district under this section 446.16 or the district defaults in the payment of principal or interest 446.17 on an outstanding debt obligation, itshallmust submit a plan 446.18 to the commissionerof children, families, and learningfor 446.19 approval specifying the measures it intends to implement to 446.20 resolve the issues which led to its inability to make the 446.21 payment and to prevent further defaults. The departmentshall446.22 must provide technical assistance to theschooldistrict in 446.23 preparing its plan. If the commissioner determines that 446.24 aschooldistrict's plan is not adequate, the commissioner shall 446.25 notify theschooldistrict that the plan has been disapproved, 446.26 the reasons for the disapproval, and that the state shall not 446.27 make future payments under this section for debt obligations 446.28 issued after the date specified in that notice until its plan is 446.29 approved. The commissioner may also notify theschooldistrict 446.30 that until its plan is approved, other aids due the district 446.31 will be withheld after a date specified in the notice. 446.32 Sec. 91. Minnesota Statutes 1996, section 124.755, 446.33 subdivision 9, is amended to read: 446.34 Subd. 9. [STATE BOND RATING.] If the commissioner of 446.35 finance determines that the credit rating of the state would be 446.36 adversely affected thereby, the commissioner of finance shall 447.1 not issue warrants under subdivision 2 for the payment of 447.2 principal or interest on any debt obligations for which aschool447.3 district did not, prior to their issuance, obligate itself to be 447.4 bound by the provisions of this section. 447.5 Sec. 92. Minnesota Statutes 1996, section 124.82, 447.6 subdivision 1, is amended to read: 447.7 Subdivision 1. [CREATION OF A DOWN PAYMENT ACCOUNT.] A 447.8schooldistrict may create a down payment account as a separate 447.9 account in its construction fund. All proceeds from the down 447.10 payment levy must be deposited in the capital expenditure fund 447.11 and transferred to this account. Interest income attributable 447.12 to the down payment account must be credited to the account. 447.13 Sec. 93. Minnesota Statutes 1996, section 124.82, 447.14 subdivision 3, is amended to read: 447.15 Subd. 3. [FACILITIES DOWN PAYMENT LEVY REFERENDUM.] A 447.16 district may levy the local tax rate approved by a majority of 447.17 the electors voting on the question to provide funds for a down 447.18 payment for an approved project. The election must take place 447.19 no more than five years before the estimated date of 447.20 commencement of the project. The referendum must be held on a 447.21 date set by theschoolboard. A referendum for a project not 447.22 receiving a positive review and comment by the commissioner 447.23 under section 121.15 must be approved by at least 60 percent of 447.24 the voters at the election. The referendum may be called by the 447.25 school board and may be held: 447.26 (1) separately, before an election for the issuance of 447.27 obligations for the project under chapter 475; or 447.28 (2) in conjunction with an election for the issuance of 447.29 obligations for the project under chapter 475; or 447.30 (3) notwithstanding section 475.59, as a conjunctive 447.31 question authorizing both the down payment levy and the issuance 447.32 of obligations for the project under chapter 475. Any 447.33 obligations authorized for a project may be issued within five 447.34 years of the date of the election. 447.35 The ballot must provide a general description of the 447.36 proposed project, state the estimated total cost of the project, 448.1 state whether the project has received a positive or negative 448.2 review and comment from the commissionerof children, families,448.3and learning, state the maximum amount of the down payment levy 448.4 as a percentage of net tax capacity, state the amount that will 448.5 be raised by that local tax rate in the first year it is to be 448.6 levied, and state the maximum number of years that the levy 448.7 authorization will apply. 448.8 The ballot must contain a textual portion with the 448.9 information required in this section and a question stating 448.10 substantially the following: 448.11 "Shall the down payment levy proposed by the board of 448.12 .......... School District No. .......... be approved?" 448.13 If approved, the amount provided by the approved local tax 448.14 rate applied to the net tax capacity for the year preceding the 448.15 year the levy is certified may be certified for the number of 448.16 years approved. 448.17 In the event a conjunctive question proposes to authorize 448.18 both the down payment levy and the issuance of obligations for 448.19 the project, appropriate language authorizing the issuance of 448.20 obligations must also be included in the question. 448.21 The district must notify the commissionerof children,448.22families, and learningof the results of the referendum. 448.23 Sec. 94. Minnesota Statutes 1997 Supplement, section 448.24 124.83, subdivision 1, is amended to read: 448.25 Subdivision 1. [HEALTH AND SAFETY PROGRAM.] To receive 448.26 health and safety revenue for any fiscal year a district must 448.27 submit to the commissionerof children, families, and learning448.28 an application for aid and levy by the date determined by the 448.29 commissioner. The application may be for hazardous substance 448.30 removal, fire and life safety code repairs, labor and industry 448.31 regulated facility and equipment violations, and health, safety, 448.32 and environmental management, including indoor air quality 448.33 management. The application must include a health and safety 448.34 program adopted by the school district board. The program must 448.35 include the estimated cost, per building, of the program by 448.36 fiscal year. 449.1 Sec. 95. Minnesota Statutes 1996, section 124.83, 449.2 subdivision 8, is amended to read: 449.3 Subd. 8. [HEALTH, SAFETY, AND ENVIRONMENTAL MANAGEMENT 449.4 COST.] (a) A district's cost for health, safety, and 449.5 environmental management is limited to the lesser of: 449.6 (1) actual cost to implement their plan; or 449.7 (2) an amount determined by the commissioner, based on 449.8 enrollment, building age, and size. 449.9 (b)Effective July 1, 1993,The departmentof children,449.10families, and learningmay contract with regional service 449.11 organizations, private contractors, Minnesota safety council, or 449.12 state agencies to provide management assistance to school 449.13 districts for health and safety capital projects. Management 449.14 assistance is the development of written programs for the 449.15 identification, recognition and control of hazards, and 449.16 prioritization and scheduling of district health and safety 449.17 capital projects. 449.18 (c) Notwithstanding paragraph (b), the department may 449.19 approve revenue, up to the limit defined in paragraph (a) for 449.20 districts having an approved health, safety, and environmental 449.21 management plan that uses district staff to accomplish 449.22 coordination and provided services. 449.23 Sec. 96. Minnesota Statutes 1996, section 124.84, 449.24 subdivision 1, is amended to read: 449.25 Subdivision 1. [REMOVAL OF ARCHITECTURAL BARRIERS.] If a 449.26schoolboard has insufficient money in its capital expenditure 449.27 fund to remove architectural barriers from a building it owns in 449.28 order to allow a pupil to attend a school in the pupil's 449.29 attendance area or to meet the needs of an employee with a 449.30 disability, a district may submit an application to the 449.31 commissionerof children, families, and learningcontaining at 449.32 least the following: 449.33 (1) program modifications that the board considered, such 449.34 as relocating classrooms, providing an accessible unisex 449.35 bathroom, providing alternative library resources, or using 449.36 special equipment, such as bookcarts, and the reasons the 450.1 modifications were not feasible; 450.2 (2) a description of the proposed building modifications 450.3 and the cost of the modifications; and 450.4 (3) the age and market value of the building. 450.5 Individuals developing an application for aschooldistrict 450.6 shall complete a workshop, developed jointly by the commissioner 450.7of children, families, and learningand the council on 450.8 disability, about access criteria. 450.9 In consultation with the council on disability, the 450.10 commissioner shall develop criteria to determine the 450.11 cost-effectiveness of removing barriers in older buildings. 450.12 The commissioner shall approve or disapprove an application 450.13 within 60 days of receiving it. 450.14 Sec. 97. Minnesota Statutes 1996, section 124.84, 450.15 subdivision 2, is amended to read: 450.16 Subd. 2. [FIRE SAFETY MODIFICATIONS.] If aschooldistrict 450.17 has insufficient money in its capital expenditure fund to make 450.18 modifications to a school building required by a fire inspection 450.19 conducted according to section 121.1502, the district may submit 450.20 an application to the commissionerof children, families, and450.21learningcontaining information required by the commissioner. 450.22 The commissioner shall approve or disapprove of the application 450.23 according to criteria established by the commissioner. The 450.24 criteria shall take into consideration the cost-effectiveness of 450.25 making modifications to older buildings. 450.26 Sec. 98. Minnesota Statutes 1996, section 124.85, 450.27 subdivision 2, is amended to read: 450.28 Subd. 2. [ENERGY EFFICIENCY CONTRACT.] (a) Notwithstanding 450.29 any law to the contrary, a school district may enter into a 450.30 guaranteed energy savings contract with a qualified provider to 450.31 significantly reduce energy or operating costs. 450.32 (b) Before entering into a contract under this subdivision, 450.33 the board shall comply with clauses (1) to (5). 450.34 (1) The boardshallmust seek proposals from multiple 450.35 qualified providers by publishing notice of the proposed 450.36 guaranteed energy savings contract in the board's official 451.1 newspaper and in other publications if the board determines that 451.2 additional publication is necessary to notify multiple qualified 451.3 providers. 451.4 (2) The school boardshallmust select the qualified 451.5 provider that best meets the needs of the board. Theschool451.6 boardshallmust provide public notice of the meeting at which 451.7 it will select the qualified provider. 451.8 (3) The contract between the board and the qualified 451.9 provider must describe the methods that will be used to 451.10 calculate the costs of the contract and the operational and 451.11 energy savings attributable to the contract. 451.12 (4) The qualified provider shall issue a report to the 451.13 board giving a description of all costs of installations, 451.14 modifications, or remodeling, including costs of design, 451.15 engineering, installation, maintenance, repairs, or debt 451.16 service, and giving detailed calculations of the amounts by 451.17 which energy or operating costs will be reduced and the 451.18 projected payback schedule in years. 451.19 (5) The boardshallmust provide published notice of the 451.20 meeting in which it proposes to award the contract, the names of 451.21 the parties to the proposed contract, and the contract's purpose. 451.22 Sec. 99. Minnesota Statutes 1996, section 124.85, 451.23 subdivision 2a, is amended to read: 451.24 Subd. 2a. [EVALUATION BY COMMISSIONER.] Upon request of 451.25 theschoolboard, the commissioner of public service shall 451.26 review the report required in subdivision 2 and provide an 451.27 evaluation to the board on the proposed contract within 15 451.28 working days of receiving the report. In evaluating the 451.29 proposed contract, the commissioner shall determine whether the 451.30 detailed calculations of the costs and of the energy and 451.31 operating savings are accurate and reasonable. The commissioner 451.32 may request additional information about a proposed contract as 451.33 the commissioner deems necessary. If the commissioner requests 451.34 additional information, the commissioner shall not be required 451.35 to submit an evaluation to the board within fewer than ten 451.36 working days of receiving the requested information. 452.1 Sec. 100. Minnesota Statutes 1996, section 124.85, 452.2 subdivision 2b, is amended to read: 452.3 Subd. 2b. [REVIEW OF SAVINGS UNDER CONTRACT.] Upon request 452.4 of theschoolboard, the commissioner shall conduct a review of 452.5 the energy and operating cost savings realized under a 452.6 guaranteed energy savings contract every three years during the 452.7 period a contract is in effect. The commissioner shall compare 452.8 the savings realized under the contract during the period under 452.9 review with the calculations of savings included in the report 452.10 required under subdivision 2 and provide an evaluation to the 452.11 board concerning the performance of the system and the accuracy 452.12 and reasonableness of the claimed energy and operating cost 452.13 savings. 452.14 Sec. 101. Minnesota Statutes 1996, section 124.85, 452.15 subdivision 2c, is amended to read: 452.16 Subd. 2c. [PAYMENT OF REVIEW EXPENSES.] The commissioner 452.17 of public service may charge aschooldistrict requesting 452.18 services under subdivisions 2a and 2b actual costs incurred by 452.19 the department of public service while conducting the review, or 452.20 one-half percent of the total identified project cost, whichever 452.21 is less. Before conducting the review, the commissioner shall 452.22 notify aschooldistrict requesting review services that 452.23 expenses will be charged to theschooldistrict. The 452.24 commissioner shall bill theschooldistrict upon completion of 452.25 the contract review. Money collected by the commissioner under 452.26 this subdivision must be deposited in the general fund. A 452.27 district may include the cost of a review by the commissioner 452.28 under subdivision 2a in a contract made pursuant to this section. 452.29 Sec. 102. Minnesota Statutes 1996, section 124.85, 452.30 subdivision 5, is amended to read: 452.31 Subd. 5. [INSTALLATION CONTRACTS.] Aschooldistrict may 452.32 enter into an installment payment contract for the purchase and 452.33 installation of energy conservation measures. The contract must 452.34 provide for payments of not less than 1/15 of the price to be 452.35 paid within two years from the date of the first operation, and 452.36 the remaining costs to be paid monthly, not to exceed a 15-year 453.1 term from the date of the first operation. 453.2 Sec. 103. Minnesota Statutes 1996, section 124.85, 453.3 subdivision 6, is amended to read: 453.4 Subd. 6. [CONTRACT CONTINUANCE.] Guaranteed energy savings 453.5 contracts may extend beyond the fiscal year in which they become 453.6 effective. Theschooldistrictshallmust include in its annual 453.7 appropriations measure for each later fiscal year any amounts 453.8 payable under guaranteed energy savings contracts during the 453.9 year. Failure of a board to make such an appropriation does not 453.10 affect the validity of the guaranteed energy savings contract or 453.11 theschooldistrict's obligations under the contracts. 453.12 Sec. 104. Minnesota Statutes 1996, section 124.85, 453.13 subdivision 7, is amended to read: 453.14 Subd. 7. [PUBLIC INFORMATION.] A guaranteed energy savings 453.15 contract must provide that all work plans and other information 453.16 prepared by the qualified provider in relation to the project, 453.17 including a detailed description of the project, are public data 453.18 after the contract is entered into, except. Information defined 453.19 as trade secret information under section 13.37, subdivision 1, 453.20 shall remain nonpublic data. 453.21 Sec. 105. Minnesota Statutes 1996, section 124.91, 453.22 subdivision 4, is amended to read: 453.23 Subd. 4. [COOPERATING DISTRICTS.] A district that has an 453.24 agreement according to section 122.535 or 122.541 may levy for 453.25 the repair costs, as approved by the departmentof children,453.26families, and learning,of a building located in another 453.27 district that is a party to the agreement. 453.28 Sec. 106. Minnesota Statutes 1997 Supplement, section 453.29 124.91, subdivision 5, is amended to read: 453.30 Subd. 5. [INTERACTIVE TELEVISION.] (a) Aschooldistrict 453.31 with its central administrative office located within economic 453.32 development region one, two, three, four, five, six, seven, 453.33 eight, nine, and ten may apply to the commissionerof children,453.34families, and learningfor ITV revenue up to the greater of .5 453.35 percent of the adjusted net tax capacity of the district or 453.36 $25,000. Eligible interactive television expenditures include 454.1 the construction, maintenance, and lease costs of an interactive 454.2 television system for instructional purposes. An eligible 454.3 school district that has completed the construction of its 454.4 interactive television system may also purchase computer 454.5 hardware and software used primarily for instructional purposes 454.6 and access to the Internet provided that its total expenditures 454.7 for interactive television maintenance and lease costs and for 454.8 computer hardware and software under this subdivision do not 454.9 exceed its interactive television revenue for fiscal year 1998. 454.10 The approval by the commissioner ofchildren, families, and454.11learningand the application procedures set forth in subdivision 454.12 1 shall apply to the revenue in this subdivision. In granting 454.13 the approval, the commissionermustshall consider whether the 454.14 district is maximizing efficiency through peak use and off-peak 454.15 use pricing structures. 454.16 (b) To obtain ITV revenue, a district may levy an amount 454.17 not to exceed the district's ITV revenue times the lesser of one 454.18 or the ratio of: 454.19 (1) the quotient derived by dividing the adjusted net tax 454.20 capacity of the district for the year before the year the levy 454.21 is certified by the actual pupil units in the district for the 454.22 year to which the levy is attributable; to 454.23 (2) 100 percent of the equalizing factor as defined in 454.24 section 124A.02, subdivision 8, for the year to which the levy 454.25 is attributable. 454.26 (c) A district's ITV aid is the difference between its ITV 454.27 revenue and the ITV levy. 454.28 (d) The revenue in the first year after reorganization for 454.29 a district that has reorganized under section 122.22, 122.23, or 454.30 122.241 to 122.247 shall be the greater of: 454.31 (1) the revenue computed for the reorganized district under 454.32 paragraph (a), or 454.33 (2)(i) for two districts that reorganized, 75 percent of 454.34 the revenue computed as if the districts involved in the 454.35 reorganization were separate, or 454.36 (ii) for three or more districts that reorganized, 50 455.1 percent of the revenue computed as if the districts involved in 455.2 the reorganization were separate. 455.3 (e) The revenue in paragraph (d) is increased by the 455.4 difference between the initial revenue and ITV lease costs for 455.5 leases that had been entered into by the preexisting districts 455.6 on the effective date of the consolidation or combination and 455.7 with a term not exceeding ten years. This increased revenue is 455.8 only available for the remaining term of the lease. However, in 455.9 no case shall the revenue exceed the amount available had the 455.10 preexisting districts received revenue separately. 455.11 (f) Effective for fiscal year 2000, the revenue under this 455.12 section shall be 75 percent of the amount determined in 455.13 paragraph (a); for fiscal year 2001, 50 percent of the amount in 455.14 paragraph (a); and for fiscal year 2002, 25 percent of the 455.15 amount in paragraph (a). 455.16 (g) This section expires effective for revenue for fiscal 455.17 year 2003, or when leases in existence on the effective date of 455.18 Laws 1997, First Special Session chapter 4, expire. 455.19 Sec. 107. Minnesota Statutes 1996, section 124.91, 455.20 subdivision 6, is amended to read: 455.21 Subd. 6. [ENERGY CONSERVATION.] Theschooldistrict may 455.22 annually levy, without the approval of a majority of the voters 455.23 in the district, an amount sufficient to repay the annual 455.24 principal and interest of the loan made pursuant to sections 455.25 216C.37 and 298.292 to 298.298. 455.26 Sec. 108. Minnesota Statutes 1997 Supplement, section 455.27 124.912, subdivision 1, is amended to read: 455.28 Subdivision 1. [STATUTORY OBLIGATIONS.] Aschooldistrict 455.29 may levy: 455.30 (1) the amount authorized for liabilities of dissolved 455.31 districts pursuant to section 122.45; 455.32 (2) the amounts necessary to pay the district's obligations 455.33 under section 268.052, subdivision 1, and the amounts necessary 455.34 to pay for job placement services offered to employees who may 455.35 become eligible for benefits pursuant to section 268.08 for the 455.36 fiscal year the levy is certified; 456.1 (3) the amounts necessary to pay the district's obligations 456.2 under section 127.05; 456.3 (4) the amounts authorized by section 122.531; 456.4 (5) the amounts necessary to pay the district's obligations 456.5 under section 122.533; and 456.6 (6) for severance pay required by sections 120.08, 456.7 subdivision 3, and 122.535, subdivision 6. 456.8 Sec. 109. Minnesota Statutes 1997 Supplement, section 456.9 124.912, subdivision 6, is amended to read: 456.10 Subd. 6. [CRIME RELATED COSTS.] For taxes levied in 1991 456.11 and subsequent years, payable in 1992 and subsequent years, each 456.12schooldistrict may make a levy on all taxable property located 456.13 within theschooldistrict for the purposes specified in this 456.14 subdivision. The maximum amount which may be levied for all 456.15 costs under this subdivision shall be equal to $1.50 multiplied 456.16 by the population of the school district. For purposes of this 456.17 subdivision, "population" of the school district means the same 456.18 as contained in section 275.14. The proceeds of the levy must 456.19 be used for reimbursing the cities and counties who contract 456.20 with theschooldistrict for the following purposes: (1) to pay 456.21 the costs incurred for the salaries, benefits, and 456.22 transportation costs of peace officers and sheriffs for liaison 456.23 services in the district's middle and secondary schools; (2) to 456.24 pay the costs for a drug abuse prevention program as defined in 456.25 Minnesota Statutes 1991 Supplement, section 609.101, subdivision 456.26 3, paragraph (f), in the elementary schools; or (3) to pay the 456.27 costs for a gang resistance education training curriculum in the 456.28 middle schools. Theschooldistrict must initially attempt to 456.29 contract for these services with the police department of each 456.30 city or the sheriff's department of the county within theschool456.31 district containing the school receiving the services. If a 456.32 local police department or a county sheriff's department does 456.33 not wish to provide the necessary services, the district may 456.34 contract for these services with any other police or sheriff's 456.35 department located entirely or partially within the school 456.36 district's boundaries. The levy authorized under this 457.1 subdivision is not included in determining the school district's 457.2 levy limitations. 457.3 Sec. 110. Minnesota Statutes 1996, section 124.912, 457.4 subdivision 7, is amended to read: 457.5 Subd. 7. [ICE ARENA LEVY.] (a) Each year, an independent 457.6 school district operating and maintaining an ice arena, may levy 457.7 for the net operational costs of the ice arena. The levy may 457.8 not exceed the net actual costs of operation of the arena for 457.9 the previous year. Net actual costs are defined as operating 457.10 costs less any operating revenues. 457.11 (b) Anyschooldistrict operating and maintaining an ice 457.12 arena must demonstrate to the satisfaction of the office of 457.13 monitoring in the departmentof children, families, and learning457.14 that the district will offer equal sports opportunities for male 457.15 and female students to use its ice arena, particularly in areas 457.16 of access to prime practice time, team support, and providing 457.17 junior varsity and younger level teams for girls' ice sports and 457.18 ice sports offerings. 457.19 Sec. 111. Minnesota Statutes 1996, section 124.912, 457.20 subdivision 9, is amended to read: 457.21 Subd. 9. [ABATEMENT LEVY.] (a) Each year, a school 457.22 district may levy an amount to replace the net revenue lost to 457.23 abatements that have occurred under chapter 278, section 270.07, 457.24 375.192, or otherwise. The maximum abatement levy is the sum of: 457.25 (1) the amount of the net revenue loss determined under 457.26 section 124.214, subdivision 2, that is not paid in state aid 457.27 including any aid amounts not paid due to proration; 457.28 (2) the difference of (i) the amount of any abatements that 457.29 have been reported by the county auditor for the first six 457.30 months of the calendar year during which the abatement levy is 457.31 certified that the district chooses to levy, (ii) less any 457.32 amount actually levied under this clause that was certified in 457.33 the previous calendar year for the first six months of the 457.34 previous calendar year; and 457.35 (3) an amount equal to any interest paid on abatement 457.36 refunds. 458.1 (b) A district may spread this levy over a period not to 458.2 exceed three years. 458.3 By July 15, the county auditor shall separately report the 458.4 abatements that have occurred during the first six calendar 458.5 months of that year to the commissionerof children, families,458.6and learningand eachschooldistrict located within the county. 458.7 Sec. 112. Minnesota Statutes 1996, section 124.914, is 458.8 amended to read: 458.9 124.914 [OPERATING DEBT LEVIES.] 458.10 Subdivision 1. [1977 STATUTORY OPERATING DEBT.](1)(a) In 458.11 each year in which so required by this subdivision, a district 458.12shallmust make an additional levy to eliminate its statutory 458.13 operating debt, determined as of June 30, 1977, and certified 458.14 and adjusted by the commissioner. This levy shall not be made 458.15 in more than 30 successive years and each year before it is 458.16 made, it must be approved by the commissioner and the approval 458.17 shall specify its amount. This levy shall be an amount which is 458.18 equal to the amount raised by a levy of a net tax rate of 1.66 458.19 percent times the adjusted net tax capacity of the district for 458.20 the preceding year for taxes payable in 1991 and thereafter; 458.21 provided that in the last year in which the district is required 458.22 to make this levy, itshallmust levy an amount not to exceed 458.23 the amount raised by a levy of a net tax rate of 1.66 percent 458.24 times the adjusted net tax capacity of the district for the 458.25 preceding year for taxes payable in 1991 and thereafter. When 458.26 the sum of the cumulative levies made pursuant to this 458.27 subdivision and transfers made according to section 121.912, 458.28 subdivision 4, equals an amount equal to the statutory operating 458.29 debt of the district, the levy shall be discontinued. 458.30(2)(b) The districtshallmust establish a special account 458.31 in the general fund which shall be designated "appropriated fund 458.32 balance reserve account for purposes of reducing statutory 458.33 operating debt" on its books and records. This account shall 458.34 reflect the levy authorized pursuant to this subdivision. The 458.35 proceeds of this levyshallmust be used only for cash flow 458.36 requirements andshallmust not be used to supplement district 459.1 revenues or income for the purposes of increasing the district's 459.2 expenditures or budgets. 459.3(3)(c) Any district which is required to levy pursuant to 459.4 this subdivisionshallmust certify the maximum levy allowable 459.5 under section 124A.23, subdivision 2, in that same year. 459.6(4)(d) Each district shall make permanent fund balance 459.7 transfers so that the total statutory operating debt of the 459.8 district is reflected in the general fund as of June 30, 1977. 459.9 Subd. 2. [1983 OPERATING DEBT.] (1) Each year, a district 459.10 may make an additional levy to eliminate a deficit in the net 459.11 unappropriated operating funds of the district, determined as of 459.12 June 30, 1983, and certified and adjusted by the commissioner. 459.13 This levy may in each year be an amount not to exceed the amount 459.14 raised by a levy of a net tax rate of 1.85 percent times the 459.15 adjusted net tax capacity for taxes payable in 1991 and 459.16 thereafter of the district for the preceding year as determined 459.17 by the commissioner. However, the total amount of this levy for 459.18 all years it is madeshallmust not exceed the lesser of (a) the 459.19 amount of the deficit in the net unappropriated operating funds 459.20 of the district as of June 30, 1983, or (b) the amount of the 459.21 aid reduction, according to Laws 1981, Third Special Session 459.22 chapter 2, article 2, section 2, but excluding clauses (l), (m), 459.23 (n), (o), and (p), and Laws 1982, Third Special Session chapter 459.24 1, article 3, section 6, to the district in fiscal year 1983. 459.25 When the cumulative levies made pursuant to this subdivision 459.26 equal the total amount permitted by this subdivision, the levy 459.27shallmust be discontinued. 459.28 (2) The proceeds of this levyshallmust be used only for 459.29 cash flow requirements andshallmust not be used to supplement 459.30 district revenues or income for the purposes of increasing the 459.31 district's expenditures or budgets. 459.32 (3)AnyA district that levies pursuant to this subdivision 459.33shallmust certify the maximum levy allowable under section 459.34 124A.23, subdivisions 2 and 2a, in that same year. 459.35 Subd. 3. [1985 OPERATING DEBT.] (1) Each year, a district 459.36 may levy to eliminate a deficit in the net unappropriated 460.1 balance in the general fund of the district, determined as of 460.2 June 30, 1985, and certified and adjusted by the commissioner. 460.3 Each year this levy may be an amount not to exceed the amount 460.4 raised by a levy of a net tax rate of 1.85 percent times the 460.5 adjusted net tax capacity for taxes payable in 1991 and 460.6 thereafter of the district for the preceding year. However, the 460.7 total amount of this levy for all years it is madeshallmust 460.8 not exceed the amount of the deficit in the net unappropriated 460.9 balance in the general fund of the district as of June 30, 460.10 1985. When the cumulative levies made pursuant to this 460.11 subdivision equal the total amount permitted by this 460.12 subdivision, the levy shall be discontinued. 460.13 (2) A district, if eligible, may levy under this 460.14 subdivision or subdivision 2 but not both. 460.15 (3) The proceeds of this levyshallmust be used only for 460.16 cash flow requirements andshallmust not be used to supplement 460.17 district revenues or income for the purposes of increasing the 460.18 district's expenditures or budgets. 460.19 (4)AnyA district that levies pursuant to this subdivision 460.20shallmust certify the maximum levy allowable under section 460.21 124A.23, subdivision 2, in that same year. 460.22 Subd. 4. [1992 OPERATING DEBT.] (a) For taxes payable for 460.23 calendar year 2003 and earlier, a district that has filed a plan 460.24 pursuant to section 121.917, subdivision 4, may levy, with the 460.25 approval of the commissioner, to eliminate a deficit in the net 460.26 unappropriated balance in the operating funds of the district, 460.27 determined as of June 30, 1992, and certified and adjusted by 460.28 the commissioner. Each year this levy may be an amount not to 460.29 exceed the lesser of: 460.30 (1) an amount raised by a levy of a net tax rate of one 460.31 percent times the adjusted net tax capacity; or 460.32 (2) $100,000. 460.33 This amountshallmust be reduced by referendum revenue 460.34 authorized under section 124A.03 pursuant to the plan filed 460.35 under section 121.917. However, the total amount of this levy 460.36 for all years it is madeshallmust not exceed the amount of the 461.1 deficit in the net unappropriated balance in the operating funds 461.2 of the district as of June 30, 1992. When the cumulative levies 461.3 made pursuant to this subdivision equal the total amount 461.4 permitted by this subdivision, the levyshallmust be 461.5 discontinued. 461.6 (b) A district, if eligible, may levy under this 461.7 subdivision or subdivision 2 or 3, or under section 122.531, 461.8 subdivision 4a, or Laws 1992, chapter 499, article 7, sections 461.9 16 or 17, but not under more than one. 461.10 (c) The proceeds of this levyshallmust be used only for 461.11 cash flow requirements andshallmust not be used to supplement 461.12 district revenues or income for the purposes of increasing the 461.13 district's expenditures or budgets. 461.14 (d) Any district that levies pursuant to this subdivision 461.15shallmust certify the maximum levy allowable under section 461.16 124A.23, subdivision 2, in that same year. 461.17 Sec. 113. Minnesota Statutes 1996, section 124.916, as 461.18 amended by Laws 1997, First Special Session chapter 4, article 461.19 1, sections 29, 30, and 31, is amended to read: 461.20 124.916 [BENEFITS LEVIES.] 461.21 Subdivision 1. [HEALTH INSURANCE.] (a) Aschooldistrict 461.22 may levy the amount necessary to make employer contributions for 461.23 insurance for retired employees under this subdivision. 461.24 (b) The school board of a joint vocational technical 461.25 district formed under sections 136C.60 to 136C.69 and the school 461.26 board of a school district may provide employer-paid hospital, 461.27 medical, and dental benefits to a person who: 461.28 (1) is eligible for employer-paid insurance under 461.29 collective bargaining agreements or personnel plans in effect on 461.30 June 30, 1992; 461.31 (2) has at least 25 years of service credit in the public 461.32 pension plan of which the person is a member on the day before 461.33 retirement or, in the case of a teacher, has a total of at least 461.34 25 years of service credit in the teachers retirement 461.35 association, a first-class city teacher retirement fund, or any 461.36 combination of these; 462.1 (3) upon retirement is immediately eligible for a 462.2 retirement annuity; 462.3 (4) is at least 55 and not yet 65 years of age; and 462.4 (5) retires on or after May 15, 1992, and before July 21, 462.5 1992. 462.6 A school board paying insurance under this subdivision may 462.7 not exclude any eligible employees. 462.8 (c) An employee who is eligible both for the health 462.9 insurance benefit under this subdivision and for an early 462.10 retirement incentive under a collective bargaining agreement or 462.11 personnel plan established by the employer must select either 462.12 the early retirement incentive provided under the collective 462.13 bargaining agreement personnel plan or the incentive provided 462.14 under this subdivision, but may not receive both. For purposes 462.15 of this subdivision, a person retires when the person terminates 462.16 active employment and applies for retirement benefits. The 462.17 retired employee is eligible for single and dependent coverages 462.18 and employer payments to which the person was entitled 462.19 immediately before retirement, subject to any changes in 462.20 coverage and employer and employee payments through collective 462.21 bargaining or personnel plans, for employees in positions 462.22 equivalent to the position from which the employee retired. The 462.23 retired employee is not eligible for employer-paid life 462.24 insurance. Eligibility ceases when the retired employee attains 462.25 the age of 65, or when the employee chooses not to receive the 462.26 retirement benefits for which the employee has applied, or when 462.27 the employee is eligible for employer-paid health insurance from 462.28 a new employer. Coverages must be coordinated with relevant 462.29 health insurance benefits provided through the federally 462.30 sponsored Medicare program. 462.31 (d) Unilateral implementation of this section by a public 462.32 employer is not an unfair labor practice for purposes of chapter 462.33 179A. The authority provided in this subdivision for an 462.34 employer to pay health insurance costs for certain retired 462.35 employees is not subject to the limits in section 179A.20, 462.36 subdivision 2a. 463.1 (e) If a school district levies according to this 463.2 subdivision, it may not also levy according to section 122.531, 463.3 subdivision 9, for eligible employees. 463.4 Subd. 2. [RETIRED EMPLOYEE HEALTH BENEFITS.] For taxes 463.5 payable in 1996, 1997, 1998, and 1999 only, aschooldistrict 463.6 may levy an amount up to the amount the district is required by 463.7 the collective bargaining agreement in effect on March 30, 1992, 463.8 to pay for health insurance or unreimbursed medical expenses for 463.9 licensed and nonlicensed employees who have terminated services 463.10 in the employing district and withdrawn from active teaching 463.11 service or other active service, as applicable, before July 1, 463.12 1992. The total amount of the levy each year may not exceed 463.13 $300,000. 463.14 Subd. 3. [RETIREMENT LEVIES.] (1) In addition to the 463.15 excess levy authorized in 1976 any district within a city of the 463.16 first class which was authorized in 1975 to make a retirement 463.17 levy under Minnesota Statutes 1974, section 275.127 and chapter 463.18 422A may levy an amount per pupil unit which is equal to the 463.19 amount levied in 1975 payable 1976, under Minnesota Statutes 463.20 1974, section 275.127 and chapter 422A, divided by the number of 463.21 pupil units in the district in 1976-1977. 463.22 (2) In 1979 and each year thereafter, any district which 463.23 qualified in 1976 for an extra levy under paragraph (1) shall be 463.24 allowed to levy the same amount as levied for retirement in 1978 463.25 under this clause reduced each year by ten percent of the 463.26 difference between the amount levied for retirement in 1971 463.27 under Minnesota Statutes 1971, sections 275.127 and 422.01 to 463.28 422.54 and the amount levied for retirement in 1975 under 463.29 Minnesota Statutes 1974, section 275.127 and chapter 422A. 463.30 (3) In 1991 and each year thereafter, a district to which 463.31 this subdivision applies may levy an additional amount required 463.32 for contributions to the Minneapolis employees retirement fund 463.33 as a result of the maximum dollar amount limitation on state 463.34 contributions to the fund imposed under section 422A.101, 463.35 subdivision 3. The additional levyshallmust not exceed the 463.36 most recent amount certified by the board of the Minneapolis 464.1 employees retirement fund as the district's share of the 464.2 contribution requirement in excess of the maximum state 464.3 contribution under section 422A.101, subdivision 3. 464.4 (4) For taxes payable in 1994 and thereafter, special 464.5 school district No. 1, Minneapolis, and independent school 464.6 district No. 625, St. Paul, may levy for the increase in the 464.7 employer retirement fund contributions, under Laws 1992, chapter 464.8 598, article 5, section 1. 464.9 (5) If the employer retirement fund contributions under 464.10 section 354A.12, subdivision 2a, are increased for fiscal year 464.11 1994 or later fiscal years, special school district No. 1, 464.12 Minneapolis, and independent school district No. 625, St. Paul, 464.13 may levy in payable 1994 or later an amount equal to the amount 464.14 derived by applying the net increase in the employer retirement 464.15 fund contribution rate of the respective teacher retirement fund 464.16 association between fiscal year 1993 and the fiscal year 464.17 beginning in the year after the levy is certified to the total 464.18 covered payroll of the applicable teacher retirement fund 464.19 association. If an applicable school district levies under this 464.20 paragraph, they may not levy under paragraph (4). 464.21 (6) In addition to the levy authorized under paragraph (5), 464.22 special school district No. 1, Minneapolis, may also levy 464.23 payable in 1997 or later an amount equal to the contributions 464.24 under section 423A.02, subdivision 3, and may also levy in 464.25 payable 1994 or later an amount equal to the state aid 464.26 contribution under section 354A.12, subdivision 3b. Independent 464.27 school district No. 625, St. Paul, may levy payable in 1997 or 464.28 later an amount equal to the supplemental contributions under 464.29 section 423A.02, subdivision 3. 464.30 Subd. 4. [MINNEAPOLIS HEALTH INSURANCE SUBSIDY.] Each year 464.31 special school district No. 1, Minneapolis, may make an 464.32 additional levy not to exceed the amount raised by a net tax 464.33 rate of .10 percent times the adjusted net tax capacity for 464.34 taxes payable in 1991 and thereafter of the property in the 464.35 district for the preceding year. The proceeds may be used only 464.36 to subsidize health insurance costs for eligible teachers as 465.1 provided in this section. 465.2 "Eligible teacher" means a retired teacher who was a basic 465.3 member of the Minneapolis teachers retirement fund association, 465.4 who retired before May 1, 1974, or who had 20 or more years of 465.5 basic member service in the Minneapolis teacher retirement fund 465.6 association and retired before June 30, 1983, and who is not 465.7 eligible to receive the hospital insurance benefits of the 465.8 federal Medicare program of the Social Security Act without 465.9 payment of a monthly premium. The districtshallmust notify 465.10 eligible teachers that a subsidy is available. To obtain a 465.11 subsidy, an eligible teacher must submit to the school district 465.12 a copy of receipts for health insurance premiums paid. The 465.13schooldistrictshallmust disburse the health insurance premium 465.14 subsidy to each eligible teacher according to a schedule 465.15 determined by the district, but at least annually. An eligible 465.16 teacher may receive a subsidy up to an amount equal to the 465.17 lesser of 90 percent of the cost of the eligible teacher's 465.18 health insurance or up to 90 percent of the cost of the number 465.19 two qualified plan of health coverage for individual policies 465.20 made available by the Minnesota comprehensive health association 465.21 under chapter 62E. 465.22 If funds remaining from the previous year's health 465.23 insurance subsidy levy, minus the previous year's required 465.24 subsidy amount, are sufficient to pay the estimated current year 465.25 subsidy, the levy must be discontinued until the remaining funds 465.26 are estimated by the school board to be insufficient to pay the 465.27 subsidy. 465.28 This subdivision does not extend benefits to teachers who 465.29 retire after June 30, 1983, and does not create a contractual 465.30 right or claim for altering the benefits in this subdivision. 465.31 This subdivision does not restrict theschooldistrict's right 465.32 to modify or terminate coverage under this subdivision. 465.33 Sec. 114. Minnesota Statutes 1997 Supplement, section 465.34 124.918, subdivision 1, is amended to read: 465.35 Subdivision 1. [CERTIFY LEVY LIMITS.] (a) By September 8, 465.36 the commissioner shall notify the school districts of their levy 466.1 limits. The commissioner shall certify to the county auditors 466.2 the levy limits for allschooldistricts headquartered in the 466.3 respective counties together with adjustments for errors in 466.4 levies not penalized pursuant to section 124.918, subdivision 3, 466.5 as well as adjustments to final pupil unit counts. Aschool466.6 district may require the commissioner to review the 466.7 certification and to present evidence in support of modification 466.8 of the certification. 466.9 The county auditor shall reduce levies for any excess of 466.10 levies over levy limitations pursuant to section 275.16. Such 466.11 reduction in excess levies may, at the discretion of the school 466.12 district, be spread over two calendar years. 466.13 (b) As part of the commissioner's certification under 466.14 paragraph (a), the commissioner shall certify the amount by 466.15 which a district's levy for its general fund was reduced under 466.16 subdivision 8. 466.17 Sec. 115. Minnesota Statutes 1996, section 124.918, 466.18 subdivision 2, is amended to read: 466.19 Subd. 2. [NOTICE TO COMMISSIONER; FORMS.] By October 7 of 466.20 each year each districtshallmust notify the commissionerof466.21children, families, and learningof the proposed levies in 466.22 compliance with the levy limitations of this chapter and 466.23 chapters 124A, 124B, and 136D. By January 15 of each year each 466.24 districtshallmust notify the commissionerof children,466.25families, and learningof the final levies certified. The 466.26 commissionerof children, families, and learningshall prescribe 466.27 the form of these notifications and may request any additional 466.28 information necessary to compute certified levy amounts. 466.29 Sec. 116. Minnesota Statutes 1996, section 124.918, 466.30 subdivision 3, is amended to read: 466.31 Subd. 3. [ADJUSTMENTS.] If anyschooldistrict levy is 466.32 found to be excessive as a result of a decision of the tax court 466.33 or a redetermination by the commissioner of revenue under 466.34 section 124.2131, subdivisions 2 to 11, or for any other reason, 466.35 the amount of the excess shall be deducted from the levy 466.36 certified in the next year for the same purpose; provided that. 467.1 If no levy is certified in the next year for the same purpose or 467.2 if the amount certified is less than the amount of the excess, 467.3 the excessshallmust be deducted from that levy and the levy 467.4 certified pursuant to section 124A.23, subdivision 2. If the 467.5 amount of any aid would have been increased in a prior year as a 467.6 result of a decision of the tax court or a redetermination by 467.7 the commissioner of revenue, the amount of the increase shall be 467.8 added to the amount of current aid for the same purposes. 467.9 Sec. 117. Minnesota Statutes 1997 Supplement, section 467.10 124.918, subdivision 6, is amended to read: 467.11 Subd. 6. [ADJUSTMENTS FOR LAW CHANGES.] Whenever a change 467.12 enacted in law changes the levy authority for a school district 467.13 or an intermediate school district for a fiscal year after the 467.14 levy for that fiscal year has been certified by the district 467.15 under section 275.07, the departmentof children, families, and467.16learning shallmust adjust the next levy certified by the 467.17 district by the amount of the change in levy authority for that 467.18 fiscal year resulting from the change. Notwithstanding section 467.19 121.904, the entire amount of the levy adjustment must be 467.20 recognized as revenue in the fiscal year the levy is certified, 467.21 if sufficient levy resources are available under generally 467.22 accepted accounting principles in the district fund where the 467.23 adjustment is to occur.SchoolDistricts that do not have 467.24 sufficient levy resources available in the fund where the 467.25 adjustment is to occurshallmust recognize in the fiscal year 467.26 the levy is certified an amount equal to the levy resources 467.27 available. The remaining adjustment amountshallmust be 467.28 recognized as revenue in the fiscal year after the levy is 467.29 certified. 467.30 Sec. 118. Minnesota Statutes 1996, section 124.918, 467.31 subdivision 7, is amended to read: 467.32 Subd. 7. [REPORTING.] For each tax settlement, the county 467.33 auditor shall report to each school district by fund, theschool467.34 district tax settlement revenue defined in section 121.904, 467.35 subdivision 4a, clause (a), and the amount levied pursuant to 467.36 section 124.914, subdivision 1, on the form specified in section 468.1 276.10. The county auditor shall send to theschooldistrict a 468.2 copy of the spread levy report specified in section 275.124. 468.3 Sec. 119. Minnesota Statutes 1997 Supplement, section 468.4 124.918, subdivision 8, is amended to read: 468.5 Subd. 8. [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 468.6 Reductions in levies pursuant to section 124.918, subdivision 1, 468.7 and section 273.138,shallmust be made prior to the reductions 468.8 in clause (2). 468.9 (2) Notwithstanding any other law to the contrary, 468.10 districts which received payments pursuant to sections 298.018; 468.11 298.23 to 298.28, except an amount distributed under section 468.12 298.28, subdivision 4, paragraph (c), clause (ii); 298.34 to 468.13 298.39; 298.391 to 298.396; 298.405; and any law imposing a tax 468.14 upon severed mineral values, or recognized revenue pursuant to 468.15 section 477A.15;shallmust not include a portion of these aids 468.16 in their permissible levies pursuant to those sections, but 468.17 insteadshallmust reduce the permissible levies authorized by 468.18 this chapter and chapter 124A by the greater of the following: 468.19 (a) an amount equal to 50 percent of the total dollar 468.20 amount of the payments received pursuant to those sections or 468.21 revenue recognized pursuant to section 477A.15 in the previous 468.22 fiscal year; or 468.23 (b) an amount equal to the total dollar amount of the 468.24 payments received pursuant to those sections or revenue 468.25 recognized pursuant to section 477A.15 in the previous fiscal 468.26 year less the product of the same dollar amount of payments or 468.27 revenue times the ratio of the maximum levy allowed the district 468.28 under Minnesota Statutes 1986, sections 124A.03, subdivision 2, 468.29 124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 468.30 subdivision 3a, 124A.12, subdivision 3a, and 124A.14, 468.31 subdivision 5a, to the total levy allowed the district under 468.32 this section and Minnesota Statutes 1986, sections 124A.03, 468.33 124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 468.34 subdivision 3a, 124A.12, subdivision 3a, 124A.14, subdivision 468.35 5a, and 124A.20, subdivision 2, for levies certified in 1986. 468.36 (3) No reduction pursuant to this subdivision shall reduce 469.1 the levy made by the district pursuant to section 124A.23, to an 469.2 amount less than the amount raised by a levy of a net tax rate 469.3 of 6.82 percent times the adjusted net tax capacity for taxes 469.4 payable in 1990 and thereafter of that district for the 469.5 preceding year as determined by the commissioner. The amount of 469.6 any increased levy authorized by referendum pursuant to section 469.7 124A.03, subdivision 2, shall not be reduced pursuant to this 469.8 subdivision. The amount of any levy authorized by section 469.9 124.912, subdivision 1, to make payments for bonds issued and 469.10 for interest thereon, shall not be reduced pursuant to this 469.11 subdivision. 469.12 (4) Before computing the reduction pursuant to this 469.13 subdivision of the health and safety levy authorized by sections 469.14 124.83 and 124.91, subdivision 6, the commissioner shall 469.15 ascertain from each affected school district the amount it 469.16 proposes to levy under each section or subdivision. The 469.17 reduction shall be computed on the basis of the amount so 469.18 ascertained. 469.19 (5) Notwithstanding any law to the contrary, any amounts 469.20 received by districts in any fiscal year pursuant to sections 469.21 298.018; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 469.22 298.405; or any law imposing a tax on severed mineral values; 469.23 and not deducted from general education aid pursuant to section 469.24 124A.035, subdivision 5, clause (2), and not applied to reduce 469.25 levies pursuant to this subdivision shall be paid by the 469.26 district to the St. Louis county auditor in the following amount 469.27 by March 15 of each year, the amount required to be subtracted 469.28 from the previous fiscal year's general education aid pursuant 469.29 to section 124A.035, subdivision 5, which is in excess of the 469.30 general education aid earned for that fiscal year. The county 469.31 auditor shall deposit any amounts received pursuant to this 469.32 clause in the St. Louis county treasury for purposes of paying 469.33 the taconite homestead credit as provided in section 273.135. 469.34 Sec. 120. Minnesota Statutes 1996, section 124.95, 469.35 subdivision 1, is amended to read: 469.36 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 470.1 section, the eligible debt service revenue of a district is 470.2 defined as follows: 470.3 (1) the amount needed to produce between five and six 470.4 percent in excess of the amount needed to meet when due the 470.5 principal and interest payments on the obligations of the 470.6 district for eligible projects according to subdivision 2, 470.7 including the amounts necessary for repayment of energy loans 470.8 according to section 216C.37 or sections 298.292 to 298.298, 470.9 debt service loans and capital loans, lease purchase payments 470.10 under section 124.91, subdivisions 2 and 3, alternative 470.11 facilities levies under section 124.239, subdivision 5, minus 470.12 (2) the amount of debt service excess levy reduction for 470.13 that school year calculated according to the procedure 470.14 established by the commissioner. 470.15 (b) The obligations in this paragraph are excluded from 470.16 eligible debt service revenue: 470.17 (1) obligations under section 124.2445; 470.18 (2) the part of debt service principal and interest paid 470.19 from the taconite environmental protection fund or northeast 470.20 Minnesota economic protection trust; 470.21 (3) obligations issued under Laws 1991, chapter 265, 470.22 article 5, section 18, as amended by Laws 1992, chapter 499, 470.23 article 5, section 24; and 470.24 (4) obligations under section 124.2455. 470.25 (c) For purposes of this section, if a preexisting school 470.26 district reorganized under section 122.22, 122.23, or 122.241 to 470.27 122.248 is solely responsible for retirement of the preexisting 470.28 district's bonded indebtedness, capital loans or debt service 470.29 loans, debt service equalization aid must be computed separately 470.30 for each of the preexistingschooldistricts. 470.31 Sec. 121. Minnesota Statutes 1996, section 124.97, is 470.32 amended to read: 470.33 124.97 [DEBT SERVICE LEVY.] 470.34 Aschooldistrict may levy the amounts necessary to make 470.35 payments for bonds issued and for interest on them, including 470.36 the bonds and interest on them, issued as authorized by 471.1 Minnesota Statutes 1974, section 275.125, subdivision 3, clause 471.2 (7)(C); and the amounts necessary for repayment of debt service 471.3 loans and capital loans, minus the amount of debt service 471.4 equalization revenue of the district. 471.5 Sec. 122. Minnesota Statutes 1996, section 124A.02, 471.6 subdivision 1, is amended to read: 471.7 Subdivision 1. [APPLICABILITY.] For the purposes of this 471.8 chapter, the terms defined in section 120.02 have the same 471.9 meanings. For thepurposeof this chapterand chapter 124, the 471.10 following terms have themeaningmeanings given them. 471.11 Sec. 123. Minnesota Statutes 1996, section 124A.02, 471.12 subdivision 3a, is amended to read: 471.13 Subd. 3a. [ADJUSTED NET TAX CAPACITY.] "Adjusted net tax 471.14 capacity" means the net tax capacity of the taxable property of 471.15 theschooldistrict as adjusted by the commissioner of revenue 471.16 under section 124.2131. The adjusted net tax capacity for any 471.17 given calendar yearshallmust be used to compute levy 471.18 limitations for levies certified in the succeeding calendar year 471.19 and aid for the school year beginning in the second succeeding 471.20 calendar year. 471.21 Sec. 124. Minnesota Statutes 1996, section 124A.02, 471.22 subdivision 20, is amended to read: 471.23 Subd. 20. [SHARED TIME AVERAGE DAILY MEMBERSHIP.] The 471.24 average daily membership of a pupil enrolled on a shared time 471.25 basisshall equalequals the ratio of the total minutes for 471.26 which the pupil is enrolled and the minimum minutes required 471.27 during the year for a regularly enrolled public school pupil. 471.28 Sec. 125. Minnesota Statutes 1996, section 124A.02, 471.29 subdivision 21, is amended to read: 471.30 Subd. 21. [SHARED TIME AID.] Aid for shared time pupils 471.31shallmust equal the formula allowance times the full-time 471.32 equivalent actual pupil units for shared time pupils. Aid for 471.33 shared time pupilsshall beis in addition to any other aid to 471.34 which the district is otherwise entitled. Shared time average 471.35 daily membershipshallmay not be used in the computation of 471.36 pupil units under section 124.17, subdivision 1, for any purpose 472.1 other than the computation of shared time aid pursuant to 472.2 subdivisions 20 to 22 and section 124A.034, subdivisions 1 to 1b. 472.3 Sec. 126. Minnesota Statutes 1996, section 124A.02, 472.4 subdivision 22, is amended to read: 472.5 Subd. 22. [SHARED TIME PUPILS.] "Shared time pupils"are472.6defined asmeans those pupils who attend public school programs 472.7 for part of the regular school day and who otherwise fulfill the 472.8 requirements of section 120.101 by attendance at a nonpublic 472.9 school. 472.10 Sec. 127. Minnesota Statutes 1996, section 124A.02, 472.11 subdivision 23, is amended to read: 472.12 Subd. 23. [TRAINING AND EXPERIENCE INDEX.] "Training and 472.13 experience index" means a measure of a district's teacher 472.14 training and experience relative to the education and experience 472.15 of teachers in the state. The measureshallmust be determined 472.16 pursuant to section 124A.04. 472.17 Sec. 128. Minnesota Statutes 1996, section 124A.02, 472.18 subdivision 24, is amended to read: 472.19 Subd. 24. [AVERAGE SALARY FOR BEGINNING TEACHERS.] 472.20 "Average salary for beginning teachers" means the average salary 472.21 for all teachers in the state who are in their first year of 472.22 teaching and who have no additional credits or degrees above a 472.23 bachelor's degree. At least biennially, the departmentshall472.24 must recompute this average using complete new data. 472.25 Sec. 129. Minnesota Statutes 1996, section 124A.029, 472.26 subdivision 1, is amended to read: 472.27 Subdivision 1. [REVENUE CONVERSION.] Except as provided 472.28 under subdivision 4, the referendum authority under section 472.29 124A.03 and the levy authority under section 124.912, 472.30 subdivisions 2 and 3, of aschooldistrict must be converted by 472.31 the department according to this section. 472.32 Sec. 130. Minnesota Statutes 1996, section 124A.029, 472.33 subdivision 3, is amended to read: 472.34 Subd. 3. [RATE ADJUSTMENT.] The departmentshallmust 472.35 adjust aschooldistrict's referendum authority for a referendum 472.36 approved before July 1, 1991, excluding authority based on a 473.1 dollar amount, and the levy authority under section 124.912, 473.2 subdivisions 2 and 3, by multiplying the sum of the rates 473.3 authorized by a district under section 124A.03 and the rates in 473.4 section 124.912, subdivisions 2 and 3, by the ratio determined 473.5 under subdivision 2 for the assessment year for which the 473.6 revenue is attributable. The adjusted rates for assessment year 473.7 1993shallapply to later years for which the revenue is 473.8 authorized. 473.9 Sec. 131. Minnesota Statutes 1996, section 124A.029, 473.10 subdivision 4, is amended to read: 473.11 Subd. 4. [PER PUPIL REVENUE CONVERSION.] (a) The 473.12 departmentshallmust convert each district's referendum revenue 473.13 authority for fiscal year 2002 and later years to an allowance 473.14 per pupil unit as follows: the revenue allowance equals the 473.15 amount determined by dividing the district's maximum revenue 473.16 under section 124A.03, for fiscal year 2001 by the district's 473.17 2000-2001 actual pupil units. A district's maximum revenue for 473.18 all later years for which the revenue is authorized equals the 473.19 revenue allowance times the district's actual pupil units for 473.20 that year. 473.21 (b) The referendum allowance reductionshallmust be 473.22 applied first to the authority with the earliest expiration date. 473.23 Sec. 132. Minnesota Statutes 1996, section 124A.03, 473.24 subdivision 2, is amended to read: 473.25 Subd. 2. [REFERENDUM REVENUE.] (a) The revenue authorized 473.26 by section 124A.22, subdivision 1, may be increased in the 473.27 amount approved by the voters of the district at a referendum 473.28 called for the purpose. The referendum may be called by the 473.29schoolboard or shall be called by theschoolboard upon written 473.30 petition of qualified voters of the district. The referendum 473.31shallmust be conducted one or two calendar years before the 473.32 increased levy authority, if approved, first becomes payable. 473.33 Only one election to approve an increase may be held in a 473.34 calendar year. Unless the referendum is conducted by mail under 473.35 paragraph (g), the referendum must be held on the first Tuesday 473.36 after the first Monday in November. The ballotshallmust state 474.1 the maximum amount of the increased revenue per actual pupil 474.2 unit, the estimated referendum tax rate as a percentage of 474.3 market value in the first year it is to be levied, and that the 474.4 revenueshallmust be used to finance school operations. The 474.5 ballot may state a schedule, determined by the board, of 474.6 increased revenue per actual pupil units that differs from year 474.7 to year over the number of years for which the increased revenue 474.8 is authorized. If the ballot contains a schedule showing 474.9 different amounts, itshallmust also indicate the estimated 474.10 referendum tax rate as a percent of market value for the amount 474.11 specified for the first year and for the maximum amount 474.12 specified in the schedule. The ballot may state that existing 474.13 referendum levy authority is expiring. In this case, the ballot 474.14 may also compare the proposed levy authority to the existing 474.15 expiring levy authority, and express the proposed increase as 474.16 the amount, if any, over the expiring referendum levy 474.17 authority. The ballotshallmust designate the specific number 474.18 of years, not to exceed ten, for which the referendum 474.19 authorizationshall applyapplies. The notice required under 474.20 section 275.60 may be modified to read, in cases of renewing 474.21 existing levies: 474.22 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 474.23 FOR A PROPERTY TAX INCREASE." 474.24 The ballot may contain a textual portion with the 474.25 information required in this subdivision and a question stating 474.26 substantially the following: 474.27 "Shall the increase in the revenue proposed by (petition 474.28 to) the board of ........., School District No. .., be approved?" 474.29 If approved, an amount equal to the approved revenue per 474.30 actual pupil unit times the actual pupil units for the school 474.31 year beginning in the year after the levy is certified shall be 474.32 authorized for certification for the number of years approved, 474.33 if applicable, or until revoked or reduced by the voters of the 474.34 district at a subsequent referendum. 474.35 (b) Theschoolboardshallmust prepare and deliver by 474.36 first class mail at least 15 days but no more than 30 daysprior475.1tobefore the day of the referendum to each taxpayer a notice of 475.2 the referendum and the proposed revenue increase. Theschool475.3 board need not mail more than one notice to any taxpayer. For 475.4 the purpose of giving mailed notice under this subdivision, 475.5 ownersshallmust be those shown to be owners on the records of 475.6 the county auditor or, in any county where tax statements are 475.7 mailed by the county treasurer, on the records of the county 475.8 treasurer. Every property owner whose name does not appear on 475.9 the records of the county auditor or the county treasurershall475.10beis deemed to have waived this mailed notice unless the owner 475.11 has requested in writing that the county auditor or county 475.12 treasurer, as the case may be, include the name on the records 475.13 for this purpose. The notice must project the anticipated 475.14 amount of tax increase in annual dollars and annual percentage 475.15 for typical residential homesteads, agricultural homesteads, 475.16 apartments, and commercial-industrial property within the school 475.17 district. 475.18 The notice for a referendum may state that an existing 475.19 referendum levy is expiring and project the anticipated amount 475.20 of increase over the existing referendum levy in the first year, 475.21 if any, in annual dollars and annual percentage for typical 475.22 residential homesteads, agricultural homesteads, apartments, and 475.23 commercial-industrial property within theschooldistrict. 475.24 The notice must include the following statement: "Passage 475.25 of this referendum will result in an increase in your property 475.26 taxes." However, in cases of renewing existing levies, the 475.27 notice may include the following statement: "Passage of this 475.28 referendum may result in an increase in your property taxes." 475.29 (c) A referendum on the question of revoking or reducing 475.30 the increased revenue amount authorized pursuant to paragraph 475.31 (a) may be called by theschoolboard and shall be called by the 475.32schoolboard upon the written petition of qualified voters of 475.33 the district. A referendum to revoke or reduce the levy amount 475.34 must be based upon the dollar amount, local tax rate, or amount 475.35 per actual pupil unit, that was stated to be the basis for the 475.36 initial authorization. Revenue approved by the voters of the 476.1 district pursuant to paragraph (a) must be received at least 476.2 once before it is subject to a referendum on its revocation or 476.3 reduction for subsequent years. Only one revocation or 476.4 reduction referendum may be held to revoke or reduce referendum 476.5 revenue for any specific year and for years thereafter. 476.6 (d) A petition authorized by paragraph (a) or (c)shall be476.7 is effective if signed by a number of qualified voters in excess 476.8 of 15 percent of the registered voters of theschooldistrict on 476.9 the day the petition is filed with theschoolboard. A 476.10 referendum invoked by petitionshallmust be held on the date 476.11 specified in paragraph (a). 476.12 (e) The approval of 50 percent plus one of those voting on 476.13 the question is required to pass a referendum authorized by this 476.14 subdivision. 476.15 (f) At least 15 daysprior tobefore the day of the 476.16 referendum, the districtshallmust submit a copy of the notice 476.17 required under paragraph (b) to the commissionerof children,476.18families, and learningand to the county auditor of each county 476.19 in which theschooldistrict is located. Within 15 days after 476.20 the results of the referendum have been certified by theschool476.21 board, or in the case of a recount, the certification of the 476.22 results of the recount by the canvassing board, the 476.23 districtshallmust notify the commissionerof children,476.24families, and learningof the results of the referendum. 476.25 (g) Except for a referendum held under subdivision 2b, any 476.26 referendum under this section held on a day other than the first 476.27 Tuesday after the first Monday in November must be conducted by 476.28 mail in accordance with section 204B.46. Notwithstanding 476.29 paragraph (b) to the contrary, in the case of a referendum 476.30 conducted by mail under this paragraph, the notice required by 476.31 paragraph (b)shallmust be prepared and delivered by first 476.32 class mail at least 20 days before the referendum. 476.33 Sec. 133. Minnesota Statutes 1996, section 124A.03, 476.34 subdivision 2a, is amended to read: 476.35 Subd. 2a. [SCHOOL REFERENDUM LEVY; MARKET VALUE.] 476.36 Notwithstanding the provisions of subdivision 2, a school 477.1 referendum levy approved after November 1, 1992, for taxes 477.2 payable in 1993 and thereafter,shallmust be levied against the 477.3 referendum market value of all taxable property as defined in 477.4 section 124A.02, subdivision 3b. Any referendum levy amount 477.5 subject to the requirements of this subdivisionshallmust be 477.6 certified separately to the county auditor under section 275.07. 477.7 All other provisions of subdivision 2 that do not conflict 477.8 with this subdivisionshallapply to referendum levies under 477.9 this subdivision. 477.10 Sec. 134. Minnesota Statutes 1996, section 124A.03, 477.11 subdivision 3c, is amended to read: 477.12 Subd. 3c. [REFERENDUM ALLOWANCE REDUCTION.] For fiscal 477.13 year 1998 and later, a district's referendum allowance for 477.14 referendum authority under subdivision 1c is reduced as provided 477.15 in this subdivision. 477.16 (a) For referendum revenue authority approved before June 477.17 1, 1996, and effective for fiscal year 1997, the reduction 477.18 equals the amount of the reduction computed for fiscal year 1997 477.19 under subdivision 3b. 477.20 (b) For referendum revenue authority approved before June 477.21 1, 1996, and effective beginning in fiscal year 1998, the 477.22 reduction equals the amount of the reduction computed for fiscal 477.23 year 1998 under subdivision 3b. 477.24 (c) For referendum revenue authority approved after May 31, 477.25 1996, there is no reduction. 477.26 (d) For districts with more than one referendum authority, 477.27 the reductionshallmust be computed separately for each 477.28 authority. The reductionshallmust be applied first to 477.29 authorities levied against tax capacity, and then to authorities 477.30 levied against referendum market value. For districts with more 477.31 than one authority levied against net tax capacity or against 477.32 referendum market value, the referendum allowance reduction 477.33shallmust be applied first to the authority with the earliest 477.34 expiration date. 477.35 (e) For a newly reorganized district created after July 1, 477.36 1996, the referendum revenue reduction equals the lesser of the 478.1 amount calculated for the combined district, or the sum of the 478.2 amounts by which each of the reorganizing district's 478.3 supplemental revenue reduction exceeds its respective 478.4 supplemental revenue allowances calculated for the year 478.5 preceding the year of reorganization. 478.6 Sec. 135. Minnesota Statutes 1996, section 124A.0311, 478.7 subdivision 2, is amended to read: 478.8 Subd. 2. [CONVERSION TO MARKET VALUE.] (a)Prior to June478.91, 1997,By June 1 of each year, aschoolboard may, by 478.10 resolution of a majority of its board, convert any remaining 478.11 portion of its referendum authority under section 124A.03, 478.12 subdivision 2, that is authorized to be levied against net tax 478.13 capacity to referendum authority that is authorized to be levied 478.14 against the referendum market value of all taxable property 478.15 located within theschooldistrict. At the option of theschool478.16 board, any remaining portion of its referendum authority may be 478.17 converted in two or more parts at separate times. The 478.18 referendum authority may be converted from net tax capacity to 478.19 referendum market value according to a schedule adopted by 478.20 resolution of theschoolboard for yearsprior tobefore taxes 478.21 payable in 2001, provided that, for taxes payable in 2001 and 478.22 later, the full amount of the referendum authority is levied 478.23 against referendum market value. The board must notify the 478.24 commissionerof children, families, and learningof the amount 478.25 of referendum authority that has been converted from net tax 478.26 capacity to referendum market value, if any, by June 15, of each 478.27 year. The maximum length of a referendum converted under this 478.28 paragraph is ten years. 478.29 (b) For referendum levy amounts converted between June 1, 478.30 1997, and June 1, 1998, all other conditions of this subdivision 478.31 apply except that the maximum length of the referendum is 478.32 limited to seven years. 478.33 (c) For referendum levy amounts converted between June 1, 478.34 1998, and June 1, 1999, all other conditions of this subdivision 478.35 apply except that the maximum length of the referendum is 478.36 limited to six years. 479.1 (d) For referendum levy amounts converted between June 1, 479.2 1999, and June 1, 2000, all other conditions of this subdivision 479.3 apply except that the maximum length of the referendum is 479.4 limited to five years. 479.5 Sec. 136. Minnesota Statutes 1996, section 124A.0311, 479.6 subdivision 3, is amended to read: 479.7 Subd. 3. [ALTERNATIVE CONVERSION.] Aschooldistrict that 479.8 has a referendum that is levied against net tax capacity that 479.9 expires before taxes payable in 1998 may convert its referendum 479.10 authority according to this subdivision. In the payable year 479.11prior tobefore the year of expiration, theschoolboard may 479.12 authorize a referendum under section 124A.03. Notwithstanding 479.13 any other law to the contrary, the district may propose, and if 479.14 approved by its electors, have its referendum authority 479.15 reauthorized in part on tax capacity and in part on referendum 479.16 market value according to a schedule adopted by resolution of 479.17 theschoolboard for yearsprior tobefore taxes payable in 479.18 2001, provided that, for taxes payable in 2001 and later, the 479.19 full amount of referendum authority is levied against referendum 479.20 market value. If the full amount of the referendum is 479.21 reauthorized on referendum market value prior to taxes payable 479.22 in 1998, the referendum may extend for ten years. If the 479.23 referendum becomes fully reauthorized on referendum market value 479.24 for a later year, the referendumshallmust not extend for more 479.25 than the maximum number of years allowed under subdivision 2. 479.26 Sec. 137. Minnesota Statutes 1996, section 124A.0311, 479.27 subdivision 4, is amended to read: 479.28 Subd. 4. [REFERENDUM.] Theschoolboard must prepare and 479.29 publish in the official legal newspaper of theschooldistrict a 479.30 notice of the public meeting on the district's intent to convert 479.31 any portion of its referendum levy to market value not less than 479.32 30 days before the scheduled date of the meeting. The 479.33 resolution converting a portion of the district's referendum 479.34 levy to referendum market value becomes final unless within 30 479.35 days after the meeting where the resolution was adopted a 479.36 petition requesting an election signed by a number of qualified 480.1 voters in excess of 15 percent of the registered voters of the 480.2schooldistrict on the day the petition is filed with theschool480.3 board. If a petition is filed, then theschoolboard resolution 480.4 has no effect and the amount of referendum revenue authority 480.5 specified in the resolution cancels for taxes payable in the 480.6 following year and thereafter. Theschoolboardshallmust 480.7 schedule a referendum under section 124A.03, subdivision 2. 480.8 Sec. 138. Minnesota Statutes 1996, section 124A.032, is 480.9 amended to read: 480.10 124A.032 [ANNUAL FOUNDATION OR GENERAL EDUCATION AID 480.11 APPROPRIATION.] 480.12 There is annually appropriated from the general fund to the 480.13 departmentof children, families, and learningthe amount 480.14 necessary for general education aid. This amountshallmust be 480.15 reduced by the amount of any money specifically appropriated for 480.16 the same purpose in any year from any state fund. 480.17 Sec. 139. Minnesota Statutes 1996, section 124A.034, is 480.18 amended to read: 480.19 124A.034 [SHARED TIME AID.] 480.20 Subdivision 1. [TO RESIDENT DISTRICT.] Aid for shared time 480.21 pupilsshallmust be paid to the district of the pupil's 480.22 residence. If a pupil attends shared time classes in another 480.23 district, the resident districtshallmust pay to the district 480.24 of attendance an amount of tuition equal to the ratio in section 480.25 124A.02, subdivision 20, times the amount of tuitionwhichthat 480.26 would be charged and paid for a nonresident public school pupil 480.27 in a similar circumstance. The district of residenceshallis 480.28 notbeobligated for tuition except by previous agreement. 480.29 Subd. 1a. [EXCEPTION.] Notwithstandingthe provisions of480.30 subdivision 1, the resident district of a shared time pupil 480.31 attending shared time classes in another district may grant the 480.32 district of attendance, upon its request, permission to claim 480.33 the pupil as a resident for state aid purposes. In this case, 480.34 state aidshallmust be paid to the district of attendance and, 480.35 upon agreement, the district of attendance may bill the resident 480.36 district for any unreimbursed education costs, but not for 481.1 unreimbursed transportation costs. The agreement may, however, 481.2 provide for the resident district to pay the cost of any of the 481.3 particular transportation categories specified in section 481.4 124.225, subdivision 1, and in this case, aid for those 481.5 categoriesshallmust be paid to the district of residence 481.6 rather than to the district of attendance. 481.7 Subd. 1b. [SECTION 123.935 SERVICES.] Minutes of 481.8 enrollment in a public school during which a nonpublic school 481.9 pupil receives services pursuant to section 123.935shallmust 481.10 not be used in the computation of shared time aid. 481.11 Subd. 2. [LOCATION OF SERVICES.] Public school programs 481.12 may be provided to shared time pupils only at a public school 481.13 building; provided, however, that. Special instruction and 481.14 services for children with a disability required pursuant to 481.15 section 120.17 may also be provided at a neutral site as defined 481.16 in section 123.932, and diagnostic and health services required 481.17 pursuant to section 120.17 may also be provided at a nonpublic 481.18 school building. As used in this subdivision, "diagnostic 481.19 services" means speech, hearing, vision, psychological, medical 481.20 and dental diagnostic services and "health services" means 481.21 physician, nursing or optometric services provided to pupils in 481.22 the field of physical and mental health. 481.23 Sec. 140. Minnesota Statutes 1996, section 124A.035, is 481.24 amended to read: 481.25 124A.035 [DEDUCTIONS FROM GENERAL EDUCATION AID.] 481.26 Subd. 2. [PERMANENT SCHOOL FUND.] The amount of money 481.27 received by aschooldistrict as income from the permanent 481.28 school fund for any year, shallmust be deducted from the 481.29 general education aid earned by the district for the same year 481.30 or from aid earned from other state sources. 481.31 Subd. 3. [MINIMUM.]In no event shallThe amount payable 481.32 to any district from state sources for any one year may not be 481.33 reduced below the amount payable as apportionment of the school 481.34 endowment fund pursuant to sections 124.08 to 124.10. 481.35 Subd. 4. [COUNTY APPORTIONMENT DEDUCTION.] Each year the 481.36 amount of money apportioned to aschooldistrict for that year 482.1 pursuant to section 124.10, subdivision 2, excluding any 482.2 district where the general education levy is determined 482.3 according to section 124A.23, subdivision 3,shallmust be 482.4 deducted from the general education aid earned by that district 482.5 for the same year or from aid earned from other state sources. 482.6 Subd. 5. [TACONITE DEDUCTIONS.] (1) Notwithstanding any 482.7 provisions of any other law to the contrary, the adjusted net 482.8 tax capacity used in calculating general education aidshallmay 482.9 include only that propertywhichthat is currently taxable in 482.10 the district. 482.11 (2) For districts that received payments under sections 482.12 298.018; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 482.13 and 298.405; any law imposing a tax upon severed mineral values, 482.14 or recognized revenue pursuant to section 477A.15; the general 482.15 education aidshallmust be reduced in the final adjustment 482.16 payment by the difference between the dollar amount of the 482.17 payments received pursuant to those sections, or revenue 482.18 recognized pursuant to section 477A.15 in the fiscal year to 482.19 which the final adjustment is attributable and the amountwhich482.20 that was calculated, pursuant to section 124.918, subdivision 8, 482.21 as a reduction of the levy attributable to the fiscal year to 482.22 which the final adjustment is attributable. If the final 482.23 adjustment of a district's general education aid for a fiscal 482.24 year is a negative amount because of this clause, the next 482.25 fiscal year's general education aid to that districtshallmust 482.26 be reduced by this negative amount in the following manner: 482.27 thereshallmust be withheld from each scheduled general 482.28 education aid payment due the district in such fiscal year, 15 482.29 percent of the total negative amount, until the total negative 482.30 amount has been withheld. The amount reduced from general 482.31 education aid pursuant to this clauseshallmust be recognized 482.32 as revenue in the fiscal year to which the final adjustment 482.33 payment is attributable. 482.34 Sec. 141. Minnesota Statutes 1996, section 124A.04, as 482.35 amended by Laws 1997, First Special Session chapter 4, article 482.36 1, section 35, is amended to read: 483.1 124A.04 [TRAINING AND EXPERIENCE INDEX.] 483.2 Subd. 2. [1999 AND LATER.] The training and experience 483.3 index for fiscal year 1999 and later must be constructed in the 483.4 following manner: 483.5 (a) The departmentshallmust construct a matrix that 483.6 classifies teachers by the extent of training received in 483.7 accredited institutions of higher education and by the years of 483.8 experience that districts take into account in determining 483.9 teacher salaries. 483.10 (b) The average salary for each cell of the matrix must be 483.11 computed as follows using data from fiscal year 1997: 483.12 (1) For eachschooldistrict, multiply the salary paid to 483.13 full-time equivalent teachers with that combination of training 483.14 and experience according to the district's teacher salary 483.15 schedule by the number of actual pupil units in that district. 483.16 (2) Add the amounts computed in clause (1) for all 483.17 districts in the state and divide the resulting sum by the total 483.18 number of actual pupil units in all districts in the state that 483.19 employ teachers. 483.20 (c) For each cell in the matrix, compute the ratio of the 483.21 average salary in that cell to the average salary for all 483.22 teachers in the state during fiscal year 1997. 483.23 (d) The index for each district that employs teachers 483.24 equals the sum of: (i) for teachers employed in that district 483.25 during fiscal year 1997 and the current fiscal year, the ratios 483.26 for each teacher computed using data for fiscal year 1997; and 483.27 (ii) for teachers employed in that district during the current 483.28 fiscal year but not during fiscal year 1997, the ratio for 483.29 teachers who are in their first year of teaching and who have no 483.30 additional credits or degrees above a bachelor's degree divided 483.31 by the number of teachers in that district. The index for a 483.32 district that employs no teachers is zero. 483.33 Sec. 142. Minnesota Statutes 1996, section 124A.22, 483.34 subdivision 2a, is amended to read: 483.35 Subd. 2a. [CONTRACT DEADLINE AND PENALTY.] (a) The 483.36 following definitions apply to this subdivision: 484.1 (1) "Public employer" means: 484.2 (i) aschooldistrict; and 484.3 (ii) a public employer, as defined by section 179A.03, 484.4 subdivision 15, other than aschooldistrict that (i) negotiates 484.5 a contract under chapter 179A with teachers, and (ii) is 484.6 established by, receives state money, or levies under chapters 484.7 120 to 129, or 136D, or 268A. 484.8 (2) "Teacher" means a person, other than a superintendent 484.9 or assistant superintendent, principal, assistant principal, or 484.10 a supervisor or confidential employee who occupies a position 484.11 for which the person must be licensed by the board of teaching, 484.12 state board of education, the former board of technical 484.13 colleges, or the board of trustees of the Minnesota state 484.14 colleges and universities. 484.15 (b) Notwithstanding any law to the contrary, a public 484.16 employer and the exclusive representative of the teachersshall484.17 must both sign a collective bargaining agreement on or before 484.18 January 15 of an even-numbered calendar year. If a collective 484.19 bargaining agreement is not signed by that date, state aid paid 484.20 to the public employer for that fiscal yearshallmust be 484.21 reduced. However, state aidshallmust not be reduced if: 484.22 (1) a public employer and the exclusive representative of 484.23 the teachers have submitted all unresolved contract items to 484.24 interest arbitration according to section 179A.16 before 484.25 December 31 of an odd-numbered year and filed required final 484.26 positions on all unresolved items with the commissioner of 484.27 mediation services before January 15 of an even-numbered year; 484.28 and 484.29 (2) the arbitration panel has issued its decision within 60 484.30 days after the date the final positions were filed. 484.31 (c)(1) For a district that reorganizes according to section 484.32 122.22, 122.23, or 122.241 to 122.248 effective July 1 of an 484.33 odd-numbered year, state aidshallmust not be reduced according 484.34 to this subdivision if theschoolboard and the exclusive 484.35 representative of the teachers both sign a collective bargaining 484.36 agreement on or before the March 15 following the effective date 485.1 of reorganization. 485.2 (2) For a district that jointly negotiates a contractprior485.3tobefore the effective date of reorganization under section 485.4 122.22, 122.23, or 122.241 to 122.248 that, for the first time, 485.5 includes teachers in all districts to be reorganized, state 485.6 aidshallmust not be reduced according to this subdivision if 485.7 theschoolboard and the exclusive representative of the 485.8 teachers sign a collective bargaining agreement on or before the 485.9 March 15 following the expiration of the teacher contracts in 485.10 each district involved in the joint negotiation. 485.11 (3) Only one extension of the contract deadline is 485.12 available to a district under this paragraph. 485.13 (d) The reductionshallmust equal $25 times the number of 485.14 fund balance pupil units: 485.15 (1) for aschooldistrict, that are in the district during 485.16 that fiscal year; or 485.17 (2) for a public employer other than aschooldistrict, 485.18 that are in programs provided by the employer during the 485.19 preceding fiscal year. 485.20 The departmentof children, families, and learning shall485.21 must determine the number of full-time equivalent actual pupil 485.22 units in the programs. The departmentof children, families,485.23and learning shallmust reduce general education aid; if general 485.24 education aid is insufficient or not paid, the departmentshall485.25 must reduce other state aids. 485.26 (e) Reductions from aid toschooldistricts and public 485.27 employers other thanschooldistrictsshallmust be returned to 485.28 the general fund. 485.29 Sec. 143. Minnesota Statutes 1996, section 124A.22, 485.30 subdivision 5, is amended to read: 485.31 Subd. 5. [DEFINITIONS.] The definitions in this 485.32 subdivision apply only to subdivisions 6 and 6a. 485.33 (a) "High school" means a secondary school that has pupils 485.34 enrolled in at least the 10th, 11th, and 12th grades. If there 485.35 is no secondary school in the district that has pupils enrolled 485.36 in at least the 10th, 11th, and 12th grades, and the school is 486.1 at least 19 miles from the next nearest school, the commissioner 486.2shallmust designate one school in the district as a high school 486.3 for the purposes of this section. 486.4 (b) "Secondary average daily membership" means, for a 486.5 district that has only one high school, the average daily 486.6 membership of resident pupils in grades 7 through 12. For a 486.7 district that has more than one high school, "secondary average 486.8 daily membership" for each high school means the product of the 486.9 average daily membership of resident pupils in grades 7 through 486.10 12 in the high school, times the ratio of six to the number of 486.11 grades in the high school. 486.12 (c) "Attendance area" means the total surface area of the 486.13 district, in square miles, divided by the number of high schools 486.14 in the district. For a district that does not operate a high 486.15 school and is less than 19 miles from the nearest operating high 486.16 school, the attendance area equals zero. 486.17 (d) "Isolation index" for a high school means the square 486.18 root of 55 percent of the attendance area plus the distance in 486.19 miles, according to the usually traveled routes, between the 486.20 high school and the nearest high school. For a district in 486.21 which there is located land defined in section 84A.01, 84A.20, 486.22 or 84A.31, the distance in miles is the sum of: 486.23 (1) the square root of one-half of the attendance area; and 486.24 (2) the distance from the border of the district to the 486.25 nearest high school. 486.26 (e) "Qualifying high school" means a high school that has 486.27 an isolation index greater than 23 and that has secondary 486.28 average daily membership of less than 400. 486.29 (f) "Qualifying elementary school" means an elementary 486.30 school that is located 19 miles or more from the nearest 486.31 elementary school or from the nearest elementary school within 486.32 the district and, in either case, has an elementary average 486.33 daily membership of an average of 20 or fewer per grade. 486.34 (g) "Elementary average daily membership" means, for a 486.35 district that has only one elementary school, the average daily 486.36 membership of resident pupils in kindergarten through grade 6. 487.1 For a district that has more than one elementary school, 487.2 "average daily membership" for each school means the average 487.3 daily membership of kindergarten through grade 6 multiplied by 487.4 the ratio of seven to the number of grades in the elementary 487.5 school. For a building in a district where the nearest 487.6 elementary school is at least 65 miles distant, pupils served 487.7shallmust be used to determine average daily membership. 487.8 Sec. 144. Minnesota Statutes 1997 Supplement, section 487.9 124A.22, subdivision 6, is amended to read: 487.10 Subd. 6. [SECONDARY SPARSITY REVENUE.] (a) A district's 487.11 secondary sparsity revenue for a school year equals the sum of 487.12 the results of the following calculation for each qualifying 487.13 high school in the district: 487.14 (1) the formula allowance for the school year, multiplied 487.15 by 487.16 (2) the secondary average daily membership of the high 487.17 school, multiplied by 487.18 (3) the quotient obtained by dividing 400 minus the 487.19 secondary average daily membership by 400 plus the secondary 487.20 daily membership, multiplied by 487.21 (4) the lesser of 1.5 or the quotient obtained by dividing 487.22 the isolation index minus 23 by ten. 487.23 (b) A newly formedschooldistrict that is the result of 487.24 districts combining under the cooperation and combination 487.25 program or consolidating under section 122.23shallmust receive 487.26 secondary sparsity revenue equal to the greater of: (1) the 487.27 amount calculated under paragraph (a) for the combined district; 487.28 or (2) the sum of the amounts of secondary sparsity revenue the 487.29 formerschooldistricts had in the year prior to consolidation, 487.30 increased for any subsequent changes in the secondary sparsity 487.31 formula. 487.32 Sec. 145. Minnesota Statutes 1996, section 124A.22, 487.33 subdivision 8, is amended to read: 487.34 Subd. 8. [SUPPLEMENTAL REVENUE.] (a) A district's 487.35 supplemental revenue allowance for fiscal year 1994 and later 487.36 fiscal years equals the district's supplemental revenue for 488.1 fiscal year 1993 divided by the district's 1992-1993 actual 488.2 pupil units. 488.3 (b) A district's supplemental revenue allowance is reduced 488.4 for fiscal year 1995 and later according to subdivision 9. 488.5 (c) A district's supplemental revenue equals the 488.6 supplemental revenue allowance, if any, times its actual pupil 488.7 units for that year. 488.8 (d) Aschooldistrict may cancel its supplemental revenue 488.9 by notifying the commissioner of education prior to June 30, 488.10 1994. Aschooldistrict that is reorganizing under section 488.11 122.22, 122.23, or 122.241 may cancel its supplemental revenue 488.12 by notifying the commissioner of children, families, and 488.13 learningprior tobefore July 1 of the year of the 488.14 reorganization. If a district cancels its supplemental revenue 488.15 according to this paragraph, its supplemental revenue allowance 488.16 for fiscal year 1993 for purposes of subdivision 9 and section 488.17 124A.03, subdivision 3b, equals zero. 488.18 Sec. 146. Minnesota Statutes 1997 Supplement, section 488.19 124A.22, subdivision 11, is amended to read: 488.20 Subd. 11. [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 488.21 operating capital revenue may be used only for the following 488.22 purposes: 488.23 (1) to acquire land for school purposes; 488.24 (2) to acquire or construct buildings for school purposes, 488.25 up to $400,000; 488.26 (3) to rent or lease buildings, including the costs of 488.27 building repair or improvement that are part of a lease 488.28 agreement; 488.29 (4) to improve and repair school sites and buildings, and 488.30 equip or reequip school buildings with permanent attached 488.31 fixtures; 488.32 (5) for a surplus school building that is used 488.33 substantially for a public nonschool purpose; 488.34 (6) to eliminate barriers or increase access to school 488.35 buildings by individuals with a disability; 488.36 (7) to bring school buildings into compliance with the 489.1 uniform fire code adopted according to chapter 299F; 489.2 (8) to remove asbestos from school buildings, encapsulate 489.3 asbestos, or make asbestos-related repairs; 489.4 (9) to clean up and dispose of polychlorinated biphenyls 489.5 found in school buildings; 489.6 (10) to clean up, remove, dispose of, and make repairs 489.7 related to storing heating fuel or transportation fuels such as 489.8 alcohol, gasoline, fuel oil, and special fuel, as defined in 489.9 section 296.01; 489.10 (11) for energy audits for school buildings and to modify 489.11 buildings if the audit indicates the cost of the modification 489.12 can be recovered within ten years; 489.13 (12) to improve buildings that are leased according to 489.14 section 123.36, subdivision 10; 489.15 (13) to pay special assessments levied against school 489.16 property but not to pay assessments for service charges; 489.17 (14) to pay principal and interest on state loans for 489.18 energy conservation according to section 216C.37 or loans made 489.19 under the Northeast Minnesota Economic Protection Trust Fund Act 489.20 according to sections 298.292 to 298.298; 489.21 (15) to purchase or lease interactive telecommunications 489.22 equipment; 489.23 (16) byschoolboard resolution, to transfer money into the 489.24 debt redemption fund to: (i) pay the amounts needed to meet, 489.25 when due, principal and interest payments on certain obligations 489.26 issued according to chapter 475; or (ii) pay principal and 489.27 interest on debt service loans or capital loans according to 489.28 section 124.44; 489.29 (17) to pay capital expenditure equipment-related 489.30 assessments of any entity formed under a cooperative agreement 489.31 between two or more districts; 489.32 (18) to purchase or lease computers and related materials, 489.33 copying machines, telecommunications equipment, and other 489.34 noninstructional equipment; 489.35 (19) to purchase or lease assistive technology or equipment 489.36 for instructional programs; 490.1 (20) to purchase textbooks; 490.2 (21) to purchase new and replacement library books; 490.3 (22) to purchase vehicles; 490.4 (23) to purchase or lease telecommunications equipment, 490.5 computers, and related equipment for integrated information 490.6 management systems for: 490.7 (i) managing and reporting learner outcome information for 490.8 all students under a results-oriented graduation rule; 490.9 (ii) managing student assessment, services, and achievement 490.10 information required for students with individual education 490.11 plans; and 490.12 (iii) other classroom information management needs; and 490.13 (24) to pay personnel costs directly related to the 490.14 acquisition, operation, and maintenance of telecommunications 490.15 systems, computers, related equipment, and network and 490.16 applications software. 490.17 Sec. 147. Minnesota Statutes 1996, section 124A.22, 490.18 subdivision 12, is amended to read: 490.19 Subd. 12. [MAINTENANCE COST INDEX.] (a) A district's 490.20 maintenance cost index is equal to the ratio of: 490.21 (1) the total weighted square footage for all eligible 490.22 district-owned facilities; and 490.23 (2) the total unweighted square footage of these facilities. 490.24 (b) The department shall determine a district's maintenance 490.25 cost index annually. Eligible district-owned facilitiesshall490.26 must include only instructional or administrative square footage 490.27 owned by the district. The commissionerof children, families,490.28and learningmay adjust the age of a building or addition for 490.29 major renovation projects. 490.30 (c) The square footage weighting factor for each original 490.31 building or addition equals the lesser of: 490.32 (1) one plus the ratio of the age in years to 100; or 490.33 (2) 1.5. 490.34 (d) The weighted square footage for each original building 490.35 or addition equals the product of the unweighted square footage 490.36 times the square footage weighting factor. 491.1 Sec. 148. Minnesota Statutes 1997 Supplement, section 491.2 124A.22, subdivision 13, is amended to read: 491.3 Subd. 13. [TRANSPORTATION SPARSITY DEFINITIONS.] The 491.4 definitions in this subdivision apply to subdivisions 13a and 491.5 13b. 491.6 (a) "Sparsity index" for aschooldistrict means the 491.7 greater of .2 or the ratio of the square mile area of theschool491.8 district to the actual pupil units of theschooldistrict. 491.9 (b) "Density index" for aschooldistrict means the ratio 491.10 of the square mile area of theschooldistrict to the actual 491.11 pupil units of theschooldistrict. However, the density index 491.12 for aschooldistrict cannot be greater than .2 or less than 491.13 .005. 491.14 (c) "Fiscal year 1996 base allowance" for aschooldistrict 491.15 means the result of the following computation: 491.16 (1) sum the following amounts: 491.17 (i) the fiscal year 1996 regular transportation revenue for 491.18 theschooldistrict according to section 124.225, subdivision 491.19 7d, paragraph (a), excluding the revenue attributable nonpublic 491.20 school pupils and to pupils with disabilities receiving special 491.21 transportation services; plus 491.22 (ii) the fiscal year 1996 nonregular transportation revenue 491.23 for theschooldistrict according to section 124.225, 491.24 subdivision 7d, paragraph (b), excluding the revenue for 491.25 desegregation transportation according to section 124.225, 491.26 subdivision 1, paragraph (c), clause (4), and the revenue 491.27 attributable to nonpublic school pupils and to pupils with 491.28 disabilities receiving special transportation services or board 491.29 and lodging; plus 491.30 (iii) the fiscal year 1996 excess transportation levy for 491.31 theschooldistrict according to section 124.226, subdivision 5, 491.32 excluding the levy attributable to nonpublic school pupils; plus 491.33 (iv) the fiscal year 1996 late activity bus levy for the 491.34schooldistrict according to section 124.226, subdivision 9, 491.35 excluding the levy attributable to nonpublic school pupils; plus 491.36 (v) an amount equal to one-third of the fiscal year 1996 492.1 bus depreciation for theschooldistrict according to section 492.2 124.225, subdivision 1, paragraph (b), clauses (2), (3), and (4). 492.3 (2) divide the result in clause (1) by theschool492.4 district's 1995-1996 fund balance pupil units. 492.5 Sec. 149. Minnesota Statutes 1996, section 124A.225, 492.6 subdivision 4, is amended to read: 492.7 Subd. 4. [REVENUE USE.] (a) Revenue must be used according 492.8 to either paragraph (b),or (c), or (d). 492.9 (b) Revenueshallmust be used to reduce and maintain the 492.10 district's instructor to learner ratios in kindergarten through 492.11 grade 6 to a level of 1 to 17 on average. The district must 492.12 prioritize the use of the revenue to attain this level initially 492.13 in kindergarten and grade 1 and then through the subsequent 492.14 grades as revenue is available. 492.15 (c)Notwithstanding paragraph (b), for fiscal year 1995, a492.16district with exceptional need as defined in subdivision 6,492.17paragraph (a), may use the revenue to reduce and maintain the492.18district's instructor-to-learner ratios in kindergarten through492.19grade 6 to a level that is at least 2.0 less than the district's492.20adopted staffing ratio, if the remaining learning and492.21development revenue is used to continue or initiate staffing492.22patterns that meet the needs of a diverse student population.492.23Programs to meet the needs of a diverse student population may492.24include programs for at-risk pupils and learning enrichment492.25programs.492.26(d) For fiscal year 1995 only, in any school building that492.27meets the characteristics of exceptional need as defined in492.28subdivision 6, paragraph (b), a district may use the revenue to492.29employ education assistants or aides supervised by a learner's492.30regular instructor to assist learners in those school buildings.492.31(e)The revenue may be used to prepare and use an 492.32 individualized learning plan for each learner. A district must 492.33 not increase the district wideinstructor-learner492.34 instructor-to-learner ratios in other grades as a result of 492.35 reducinginstructor-learnerinstructor-to-learner ratios in 492.36 kindergarten through grade 6. Revenue may not be used to 493.1 provide instructor preparation time or to provide the district's 493.2 share of revenue required under section 124.311. Aschool493.3 district may use a portion of the revenue reserved under this 493.4 section to employ up to the same number of full-time equivalent 493.5 education assistants or aides as the district employed during 493.6 the 1992-1993 school year under Minnesota Statutes 1992, section 493.7 124.331, subdivision 2. 493.8 Sec. 150. Minnesota Statutes 1996, section 124A.225, 493.9 subdivision 5, is amended to read: 493.10 Subd. 5. [ADDITIONAL REVENUE USE.] If theschoolboard of 493.11 aschooldistrict determines that the district has achieved and 493.12 is maintaining theinstructor-learnerinstructor-to-learner 493.13 ratios specified in subdivision 4 and is using individualized 493.14 learning plans, theschoolboard may use the revenue to purchase 493.15 material and services or provide staff development needed for 493.16 reducedinstructor-learnerinstructor-to-learner ratios. If 493.17 additional revenue remains, the district must use the revenue to 493.18 improve program offerings, including programs provided through 493.19 interactive television, throughout the district or other general 493.20 education purposes. 493.21 Sec. 151. Minnesota Statutes 1997 Supplement, section 493.22 124A.23, subdivision 1, is amended to read: 493.23 Subdivision 1. [GENERAL EDUCATION TAX RATE.] The 493.24 commissionershallmust establish the general education tax rate 493.25 by July 1 of each year for levies payable in the following year. 493.26 The general education tax capacity rateshallmust be a rate, 493.27 rounded up to the nearest hundredth of a percent, that, when 493.28 applied to the adjusted net tax capacity for all districts, 493.29 raises the amount specified in this subdivision. The general 493.30 education tax rateshallmust be the rate that raises 493.31 $1,359,000,000 for fiscal year 1998 and $1,385,500,000 for 493.32 fiscal year 1999 and later fiscal years. The general education 493.33 tax rate may not be changed due to changes or corrections made 493.34 to a district's adjusted net tax capacity after the tax rate has 493.35 been established. If the levy target for fiscal year 1999 is 493.36 changed by another law enacted during the 1997 session, the 494.1 commissioner shall reduce the target in this bill by the amount 494.2 of the reduction in the enacted law. 494.3 Sec. 152. Minnesota Statutes 1997 Supplement, section 494.4 124A.23, subdivision 2, is amended to read: 494.5 Subd. 2. [GENERAL EDUCATION LEVY.] To obtain general 494.6 education revenue, excluding transition revenue and supplemental 494.7 revenue, a district may levy an amount not to exceed the general 494.8 education tax rate times the adjusted net tax capacity of the 494.9 district for the preceding year. If the amount of the general 494.10 education levy would exceed the general education revenue, 494.11 excluding supplemental revenue, the general education levyshall494.12 must be determined according to subdivision 3. 494.13 Sec. 153. Minnesota Statutes 1997 Supplement, section 494.14 124A.23, subdivision 3, is amended to read: 494.15 Subd. 3. [GENERAL EDUCATION LEVY; DISTRICTS OFF THE 494.16 FORMULA.] If the amount of the general education levy for a 494.17 district exceeds the district's general education revenue, 494.18 excluding transition revenue and supplemental revenue, the 494.19 amount of the general education levyshallmust be limited to 494.20 the following: 494.21 (1) the district's general education revenue, excluding 494.22 transition revenue and supplemental revenue; plus 494.23 (2) the amount of the aid reduction for the same school 494.24 year according to section 124A.24; minus 494.25 (3) payments made for the same school year according to 494.26 section 124A.035, subdivision 4. 494.27 For purposes of statutory cross-reference, a levy made 494.28 according to this subdivision shall be construed to be the levy 494.29 made according to subdivision 2. 494.30 Sec. 154. Minnesota Statutes 1997 Supplement, section 494.31 124A.28, subdivision 3, is amended to read: 494.32 Subd. 3. [ANNUAL EXPENDITURE REPORT.] Each year a district 494.33 that receives compensatory education revenueshallmust submit a 494.34 report identifying the expenditures it incurred to meet the 494.35 needs of eligible learners under subdivision 1. The report must 494.36 conform to uniform financial and reporting standards established 495.1 for this purpose. 495.2 Sec. 155. Minnesota Statutes 1996, section 124A.30, is 495.3 amended to read: 495.4 124A.30 [STATEWIDE AVERAGE REVENUE.] 495.5 By October 1 of each year the commissionershallmust 495.6 estimate the statewide average general education revenue per 495.7 actual pupil unit and the range in general education revenue 495.8 among pupils and districts by computing the difference between 495.9 the fifth and ninety-fifth percentiles of general education 495.10 revenue. The commissioner must provide that information to 495.11 allschooldistricts. 495.12 If the disparity in general education revenue as measured 495.13 by the difference between the fifth and ninety-fifth percentiles 495.14 increases in any year, the commissioner must propose a change in 495.15 the general education formula that will limit the disparity in 495.16 general education revenue to no more than the disparity for the 495.17 previous school year. The commissioner must submit the proposal 495.18 to the education committees of the legislature by January 15. 495.19 Sec. 156. Minnesota Statutes 1996, section 124C.498, as 495.20 amended by Laws 1997, First Special Session chapter 4, article 495.21 2, section 33, and article 7, section 7, is amended to read: 495.22 124C.498 [METROPOLITAN MAGNET SCHOOL GRANTS.] 495.23 Subdivision 1. [POLICY AND PURPOSE.] A metropolitan magnet 495.24 school grant program is established for the purpose of promoting 495.25 integrated education for students in prekindergarten through 495.26 grade 12,increaseincreasing mutual understanding among all 495.27 students, andaddressaddressing the inability of local school 495.28 districts to provide required construction funds through local 495.29 property taxes. The program seeks to encourageschooldistricts 495.30 located in whole or in part within the seven-county metropolitan 495.31 area to make available to school age children residing in the 495.32 metropolitan area those educational programs, services, and 495.33 facilities that are essential to meeting all children's needs 495.34 and abilities. The program anticipates using the credit of the 495.35 state, to a limited degree, to provide grants to metropolitan 495.36 area school districts to improve the educational opportunities 496.1 and academic achievement of disadvantaged children and the 496.2 facilities that are available to those children. 496.3 Subd. 2. [APPROVAL AUTHORITY; APPLICATION FORMS.] To the 496.4 extent money is available, the commissionerof children,496.5families, and learningmay approve projects from applications 496.6 submitted under this section. The grant money must be used only 496.7 to design, acquire, construct, remodel, improve, furnish, or 496.8 equip the building or site of a magnet school facility according 496.9 to contracts entered into within 24 months after the date on 496.10 which a grant is awarded. 496.11 Subd. 3. [GRANT APPLICATION PROCESS.] (a) Any group of 496.12 school districts that meets the criteria required under 496.13 paragraph (b)(i) may apply for a magnet school grant in an 496.14 amount not to exceed $15,000,000 for the approved costs or 496.15 expansion of a magnet school facility. 496.16 (b)(i) Any group of districts that submits an application 496.17 for a grant shall submit a proposal to the commissioner for 496.18 review and comment under section 121.15, and the commissioner 496.19 shall prepare a review and comment on the proposed magnet school 496.20 facility, regardless of the amount of the capital expenditure 496.21 required to design, acquire, construct, remodel, improve, 496.22 furnish, or equip the facility. The commissioner must not 496.23 approve an application for a magnet school grant for any 496.24 facility unless the facility receives a favorable review and 496.25 comment under section 121.15 and the participating districts: 496.26 (1) establish a joint powers board under section 471.59 to 496.27 represent all participating districts and govern the magnet 496.28 school facility; 496.29 (2) design the planned magnet school facility to meet the 496.30 applicable requirements contained in Minnesota Rules, chapter 496.31 3535; 496.32 (3) submit a statement of need, including reasons why the 496.33 magnet school will facilitate integration and improve learning; 496.34 (4) prepare an educational plan that includes input from 496.35 both community and professional staff; and 496.36 (5) develop an education program that will improve learning 497.1 opportunities for students attending the magnet school. 497.2 (ii) The districts may develop a plan that permits social 497.3 service, health, and other programs serving students and 497.4 community residents to be located within the magnet school 497.5 facility. The commissioner shall consider this plan when 497.6 preparing a review and comment on the proposed facility. 497.7 (c) When two or more districts enter into an agreement 497.8 establishing a joint powers board to govern the magnet school 497.9 facility, all member districts shall have the same powers. 497.10 (d) A joint powers board of participating school districts 497.11 established under paragraphs (b) and (c) that intends to apply 497.12 for a grantshallmust adopt a resolution stating the costs of 497.13 the proposed project, the purpose for which the debt is to be 497.14 incurred, and an estimate of the dates when the contracts for 497.15 the proposed project will be completed. A copy of the 497.16 resolution must accompany any application for a state grant 497.17 under this section. 497.18 (e)(i) The commissioner shall examine and consider all 497.19 grant applications. If the commissioner finds that any joint 497.20 powers district is not a qualified grant applicant, the 497.21 commissioner shall promptly notify that joint powers board. The 497.22 commissioner shall make awards to no more than two qualified 497.23 applicants whose applications have been on file with the 497.24 commissioner more than 30 days. 497.25 (ii) A grant award is subject to verification by the joint 497.26 powers board under paragraph (f). A grant award must not be 497.27 made until the participating districts determine the site of the 497.28 magnet school facility. If the total amount of the approved 497.29 applications exceeds the amount of grant funding that is or can 497.30 be made available, the commissioner shall allot the available 497.31 amount equally between the approved applicant districts. The 497.32 commissioner shall promptly certify to each qualified joint 497.33 powers board the amount, if any, of the grant awarded to it. 497.34 (f) Each grant must be evidenced by a contract between the 497.35 joint powers board and the state acting through the 497.36 commissioner. The contract obligates the state to pay to the 498.1 joint powers board an amount computed according to paragraph 498.2 (e)(ii) and a schedule, and terms and conditions acceptable to 498.3 the commissioner of finance. 498.4 Sec. 157. Minnesota Statutes 1996, section 124C.60, 498.5 subdivision 2, is amended to read: 498.6 Subd. 2. [PROCEDURES.] The state board shall establish 498.7 procedures and deadlines for the grant application. The state 498.8 boardshallmust review each application and may require 498.9 modifications consistent with sections 122.241 to 122.248. 498.10 Sec. 158. Minnesota Statutes 1996, section 124C.72, 498.11 subdivision 2, is amended to read: 498.12 Subd. 2. [APPLICATION FORMS.] The commissionerof498.13children, families, and learningshall prepare application forms 498.14 and establish application dates. 498.15 Sec. 159. Minnesota Statutes 1996, section 124C.73, 498.16 subdivision 3, is amended to read: 498.17 Subd. 3. [AWARD OF GRANTS.](a)The commissioner shall 498.18 examine and consider all applications for grants, and if a 498.19 district is found not qualified, the commissioner shall promptly 498.20 notify the district board. The commissioner shall give first 498.21 priority toschooldistricts that have entered into the 498.22 cooperation and combination process under sections 122.241 to 498.23 122.248, or that have consolidated since January 1, 1987. The 498.24 commissioner shall further prioritize grants on the basis of the 498.25 following: the district's tax burden, the long-term feasibility 498.26 of the project, the suitability of the project, and the 498.27 district's need for the project. If the total amount of the 498.28 applications exceeds the amount that is or can be made 498.29 available, the commissioner shall award grants according to the 498.30 commissioner's judgment and discretion and based upon a ranking 498.31 of the projects according to the factors listed in this 498.32 paragraph. The commissioner shall promptly certify to each 498.33 district the amount, if any, of the grant awarded to it. 498.34(b) For fiscal year 1994, the commissioner may develop498.35criteria in addition to the factors listed in paragraph (a), in498.36order to award demonstration grants.499.1 Sec. 160. [REPEALER.] 499.2 (a) Minnesota Statutes 1996, sections 124.01; 124.19, 499.3 subdivision 4; 124.38, subdivision 9; 124.472; 124.473; 124.474; 499.4 124.476; 124.477; 124.478; 124.479; 124.71, subdivision 2; 499.5 124A.02, subdivisions 15 and 16; 124A.029, subdivision 2; 499.6 124A.03, subdivision 3b; 124A.22, subdivision 13f; 124A.225, 499.7 subdivision 6; and 124A.31; Minnesota Statutes 1997 Supplement, 499.8 section 124A.26, are repealed. 499.9 (b) Minnesota Statutes 1996, section 124.2725, subdivisions 499.10 1, 2, 3, 4, 5, 6, 7, 9, 10, 12, 13, 14, and 16; and Minnesota 499.11 Statutes 1997 Supplement, section 124.2725, subdivision 11, are 499.12 repealed. 499.13 Sec. 161. [INSTRUCTION TO REVISOR.] 499.14 The revisor of statutes shall renumber each section of 499.15 Minnesota Statutes listed in column A with the number listed in 499.16 column B. The revisor shall also make necessary cross-reference 499.17 changes consistent with the renumbering. 499.18 Column A Column B 499.19 124A.02, subd. 1 124D.01, subd. 1 499.20 subd. 3a subd. 2 499.21 subd. 3b subd. 3 499.22 subd. 8 subd. 4 499.23 subd. 10 subd. 5 499.24 subd. 20 subd. 6 499.25 subd. 21 subd. 7 499.26 subd. 22 subd. 8 499.27 subd. 23 subd. 9 499.28 subd. 24 subd. 10 499.29 subd. 25 subd. 11 499.30 124.17, subd. 1 120D.02, subd. 1 499.31 subd. 1c subd. 2 499.32 subd. 1d subd. 3 499.33 subd. 1e subd. 4 499.34 subd. 1f subd. 5 499.35 subd. 2 subd. 6 499.36 subd. 2a subd. 7 500.1 subd. 2b subd. 8 500.2 subd. 2c subd. 9 500.3 subd. 2e subd. 10 500.4 subd. 2f subd. 11 500.5 subd. 3 subd. 12 500.6 subd. 4 subd. 13 500.7 subd. 6 subd. 14 500.8 subd. 7 subd. 15 500.9 124.175 124D.03 500.10 124.19, subd. 3 124D.04, subd. 1 500.11 subd. 5 subd. 2 500.12 124A.22, subd. 1 124D.05, subd. 1 500.13 subd. 2 subd. 2 500.14 subd. 2a subd. 3 500.15 subd. 3 subd. 4 500.16 subd. 3a subd. 5 500.17 subd. 4 subd. 6 500.18 subd. 5 subd. 7 500.19 subd. 6 subd. 8 500.20 subd. 6a subd. 9 500.21 subd. 8 subd. 10 500.22 subd. 8a subd. 11 500.23 subd. 8b subd. 12 500.24 subd. 9 subd. 13 500.25 subd. 10 subd. 14 500.26 subd. 11 subd. 15 500.27 subd. 11a subd. 16 500.28 subd. 12 subd. 17 500.29 subd. 13 subd. 18 500.30 subd. 13a subd. 19 500.31 subd. 13b subd. 20 500.32 subd. 13c subd. 21 500.33 subd. 13d subd. 22 500.34 subd. 13e subd. 23 500.35 124A.04 124D.06 500.36 124A.225 124D.07 501.1 124A.23 124D.08 501.2 124A.24 124D.09 501.3 124A.28, subd. 1 124D.10, subd. 1 501.4 subd. 1a subd. 2 501.5 subd. 1b subd. 3 501.6 subd. 2 subd. 4 501.7 subd. 3 subd. 5 501.8 124A.029, subd. 1 124D.11, subd. 1 501.9 subd. 3 subd. 2 501.10 subd. 4 subd. 3 501.11 124A.03, subd. 1b 124D.12, subd. 1 501.12 subd. 1c subd. 2 501.13 subd. 1d subd. 3 501.14 subd. 1e subd. 4 501.15 subd. 1f subd. 5 501.16 subd. 1g subd. 6 501.17 subd. 1h subd. 7 501.18 subd. 1i subd. 8 501.19 subd. 2 subd. 9 501.20 subd. 2a subd. 10 501.21 subd. 2b subd. 11 501.22 subd. 3c subd. 12 501.23 124A.0311 124D.13 501.24 124A.032 124D.14 501.25 124A.034, subd. 1 124D.15, subd. 1 501.26 subd. 1a subd. 2 501.27 subd. 2 subd. 3 501.28 124A.035, subd. 2 124D.16, subd. 1 501.29 subd. 3 subd. 2 501.30 subd. 4 subd. 3 501.31 subd. 5 subd. 4 501.32 124A.30 124D.17 501.33 123.76 124D.18 501.34 123.77 124D.19 501.35 123.78, subd. 1 124D.20, subd. 1 501.36 subd. 1a subd. 2 502.1 subd. 2 subd. 3 502.2 subd. 3 subd. 4 502.3 123.79 124D.21 502.4 123.799 124D.22 502.5 123.7991 124D.23 502.6 123.7992 124D.24 502.7 123.801 124D.25 502.8 123.805 124D.26 502.9 124.225, subd. 1 124D.27, subd. 1 502.10 subd. 7f subd. 2 502.11 subd. 8l subd. 3 502.12 subd. 8m subd. 4 502.13 subd. 9 subd. 5 502.14 subd. 13 subd. 6 502.15 subd. 14 subd. 7 502.16 subd. 15 subd. 8 502.17 subd. 16 subd. 9 502.18 subd. 17 subd. 10 502.19 124.2726 124D.28 502.20 124.2727, subd. 6a 124D.29, subd. 1 502.21 subd. 6b subd. 2 502.22 subd. 6c subd. 3 502.23 subd. 6d subd. 4 502.24 subd. 9 subd. 5 502.25 124.646, subd. 1 124D.30, subd. 1 502.26 subd. 3 subd. 2 502.27 subd. 4 subd. 3 502.28 124.6462 124D.31 502.29 124.6469 124D.32 502.30 124.647 124D.33 502.31 124.6471 124D.34 502.32 124.6472 124D.35 502.33 124.648 124D.36 502.34 124.6475 124D.37 502.35 124.912, subd. 1 124D.38, subd. 1 502.36 subd. 2 subd. 2 503.1 subd. 3 subd. 3 503.2 subd. 6 subd. 4 503.3 subd. 7 subd. 5 503.4 subd. 9 subd. 6 503.5 124.914 124D.39 503.6 124.916 124D.40 503.7 127.05 124D.41 503.8 124.918 124D.42 503.9 124.71 124D.43 503.10 124.72 124D.44 503.11 124.73 124D.45 503.12 123.931 124D.46 503.13 123.932, subd. 1a 124D.47, subd. 1 503.14 subd. 1b subd. 2 503.15 subd. 1c subd. 3 503.16 subd. 1d subd. 4 503.17 subd. 1e subd. 5 503.18 subd. 2a subd. 6 503.19 subd. 2b subd. 7 503.20 subd. 2c subd. 8 503.21 subd. 3 subd. 9 503.22 subd. 3a subd. 10 503.23 subd. 5 subd. 11 503.24 subd. 7 subd. 12 503.25 subd. 9 subd. 13 503.26 subd. 10 subd. 14 503.27 subd. 11 subd. 15 503.28 123.933 124D.48 503.29 123.935 124D.49 503.30 123.936 124D.50 503.31 123.9361 124D.51 503.32 123.9362 124D.52 503.33 123.937 124D.53 503.34 123.947 124D.54 503.35 124.239, subd. 1 124D.55, subd. 1 503.36 subd. 2 subd. 2 504.1 subd. 3 subd. 3 504.2 subd. 4 subd. 4 504.3 subd. 5 subd. 5 504.4 subd. 5a subd. 6 504.5 subd. 5b subd. 7 504.6 subd. 6 subd. 8 504.7 124.242 124D.56 504.8 124.2445 124D.57 504.9 124.2455 124D.58 504.10 124.82 124D.59 504.11 124.95, subd. 1 124D.60, subd. 1 504.12 subd. 2 subd. 2 504.13 subd. 2a subd. 3 504.14 subd. 3 subd. 4 504.15 subd. 4 subd. 5 504.16 subd. 5 subd. 6 504.17 subd. 6 subd. 7 504.18 124.961 124D.61 504.19 124.97 124D.62 504.20 124.825 124D.63 504.21 124.829 124D.64 504.22 124.83 124D.65 504.23 124.84 124D.66 504.24 124.85, subd. 1 124D.67, subd. 1 504.25 subd. 2 subd. 2 504.26 subd. 2a subd. 3 504.27 subd. 2b subd. 4 504.28 subd. 2c subd. 5 504.29 subd. 3 subd. 6 504.30 subd. 4 subd. 7 504.31 subd. 5 subd. 8 504.32 subd. 6 subd. 9 504.33 subd. 7 subd. 10 504.34 124.91, subd. 1 124D.68, subd. 1 504.35 subd. 2 subd. 2 504.36 subd. 4 subd. 3 505.1 subd. 5 subd. 4 505.2 subd. 6 subd. 5 505.3 subd. 7 subd. 6 505.4 124.74 124D.69 505.5 124.75 124D.70 505.6 124.755 124D.71 505.7 124.76 124D.72 505.8 124C.60 124D.73 505.9 124.35 124D.74 505.10 124.36 124D.75 505.11 124.37 124D.76 505.12 124.38, subd. 1 124D.77, subd. 1 505.13 subd. 2 subd. 2 505.14 subd. 3 subd. 3 505.15 subd. 4 subd. 4 505.16 subd. 4a subd. 5 505.17 subd. 5 subd. 6 505.18 subd. 6 subd. 7 505.19 subd. 7 subd. 8 505.20 subd. 8 subd. 9 505.21 subd. 8a subd. 10 505.22 subd. 11 subd. 11 505.23 subd. 12 subd. 12 505.24 subd. 13 subd. 13 505.25 subd. 14 subd. 14 505.26 124.381 124D.78 505.27 124.39 124D.79 505.28 124.40 124D.80 505.29 124.41 124D.81 505.30 124.42 124D.82 505.31 124.431, subd. 1 124D.83, subd. 1 505.32 subd. 1a subd. 2 505.33 subd. 2 subd. 3 505.34 subd. 3 subd. 4 505.35 subd. 4 subd. 5 505.36 subd. 5 subd. 6 506.1 subd. 6 subd. 7 506.2 subd. 7 subd. 8 506.3 subd. 8 subd. 9 506.4 subd. 9 subd. 10 506.5 subd. 10 subd. 11 506.6 subd. 11 subd. 12 506.7 subd. 12 subd. 13 506.8 subd. 13 subd. 14 506.9 subd. 14 subd. 15 506.10 124.44 124D.84 506.11 124.45 124D.85 506.12 124.46 124D.86 506.13 124.491 124D.87 506.14 124.492 124D.88 506.15 124.493, subd. 1 124D.89, subd. 1 506.16 subd. 3 subd. 2 506.17 124.494, subd. 1 124D.90, subd. 1 506.18 subd. 2 subd. 2 506.19 subd. 2a subd. 3 506.20 subd. 3 subd. 4 506.21 subd. 4 subd. 5 506.22 subd. 4a subd. 6 506.23 subd. 5 subd. 7 506.24 subd. 6 subd. 8 506.25 subd. 7 subd. 9 506.26 124.4945 124D.91 506.27 124.4946 124D.92 506.28 124.495 124D.93 506.29 124C.498 124D.94 506.30 124C.71 124D.95 506.31 124C.72 124D.96 506.32 124C.73 124D.97 506.33 ARTICLE 8 506.34 CHAPTER 125A 506.35 TEACHERS 506.36 Section 1. Minnesota Statutes 1996, section 123.35, 507.1 subdivision 5, is amended to read: 507.2 Subd. 5. [HIRING TEACHERS; SUBSTITUTE TEACHERS.] The board 507.3shallmust employ and contract with necessary qualified teachers 507.4 and discharge the same for cause. The boardshallmust not hire 507.5 a substitute teacher except: 507.6 (a) For a duration of time of less than one school year to 507.7 replace a regular teacher who is absent; or 507.8 (b) For a duration of time equal to or greater than one 507.9 school year to replace a regular teacher on a leave of absence. 507.10 If a substitute teacher is hired pursuant to clause (b), 507.11 each full school year during which the teacher is employed by a 507.12 district pursuant to that clause shall be deemed one year of the 507.13 teacher's probationary period of employment pursuant to either 507.14 section 125.12, subdivision 3, or 125.17, subdivision 2. The 507.15 teacher shall be eligible for continuing contract status 507.16 pursuant to section 125.12, subdivision 4, or tenure status 507.17 pursuant to section 125.17, subdivision 3, after completion of 507.18 the applicable probationary period. 507.19 Sec. 2. Minnesota Statutes 1996, section 123.35, 507.20 subdivision 13, is amended to read: 507.21 Subd. 13. [PRACTICE OR STUDENT TEACHERS.] The board may, 507.22 by agreements with teacher preparing institutions, arrange for 507.23 classroom experience in the district for practice or student 507.24 teachers who have completed not less than two years of an 507.25 approved teacher education program. Such practice 507.26 teachersshallmust be provided with appropriate supervision by 507.27 a fully qualified teacher under rules promulgated by the 507.28 boardand shall be. Practice teachers are deemed employees of 507.29 the school district in which they are rendering services for 507.30 purposes of workers' compensation; liability insurance, if 507.31 provided for other district employees in accordance with section 507.32 123.41; and legal counsel in accordance with the provisions of 507.33 section 127.03. 507.34 Sec. 3. Minnesota Statutes 1996, section 124.278, 507.35 subdivision 3, is amended to read: 507.36 Subd. 3. [REIMBURSEMENT.] Reimbursementshallmust equal 508.1 one-half of the salary and fringe benefits, but not more than 508.2 $20,000. The districtshallmust receive reimbursement for each 508.3 year a minority teacher, aide, or education assistant is 508.4 employed. The departmentof children, families, and learning508.5shallmust establish application or other procedures for 508.6 districts to obtain the reimbursement. The departmentshall508.7 must not prorate the reimbursement. 508.8 Sec. 4. Minnesota Statutes 1996, section 124A.29, is 508.9 amended to read: 508.10 124A.29 [RESERVED REVENUE FOR STAFF DEVELOPMENT.] 508.11 Subdivision 1. [STAFF DEVELOPMENT AND PARENTAL INVOLVEMENT 508.12 REVENUE.] A district is encouraged to reserve general education 508.13 revenue for in-service education for programs under section 508.14 126.77, subdivision 2, for staff development plans, including 508.15 plans for challenging instructional activities and experiences 508.16 under section 126.70, and for curriculum development and 508.17 programs, other in-service education, teachers' workshops, 508.18 teacher conferences, the cost of substitute teachers staff 508.19 development purposes, and other related costs for staff 508.20 development efforts. Districts may expend an additional amount 508.21 of basic revenue for staff development based on their needs. 508.22 Theschoolboardshallmust initially allocate 50 percent of the 508.23 revenue to each school site in the district on a per teacher 508.24 basis, whichshallmust be retained by the school site until 508.25 used. The board may retain 25 percent to be used for district 508.26 wide staff development efforts. The remaining 25 percent of the 508.27 revenueshallmust be used to make grants to school sites that 508.28 demonstrate exemplary use of allocated staff development 508.29 revenue. A grant may be used for any purpose authorized under 508.30 section 126.70, 126.77, subdivision 2, or for the costs of 508.31 curriculum development and programs, other in-service education, 508.32 teachers' workshops, teacher conferences, substitute teachers 508.33 for staff development purposes, and other staff development 508.34 efforts, and determined by the site decision-making team. The 508.35 site decision-making team must demonstrate to theschoolboard 508.36 the extent to which staff at the site have met the outcomes of 509.1 the program. The board may withhold a portion of initial 509.2 allocation of revenue if the staff development outcomes are not 509.3 being met. 509.4 Subd. 2. [CAREER TEACHER STAFF DEVELOPMENT.] Of a 509.5 district's basic revenue under section 124A.22, subdivision 2, 509.6 an amount equal to $5 times the number of actual pupil units 509.7shallmust be reserved by a district operating a career teacher 509.8 program according to sections 125.701 to 125.705. The revenue 509.9 may be used only to provide staff development for the career 509.10 teacher program. 509.11 Sec. 5. Minnesota Statutes 1996, section 125.03, 509.12 subdivision 1, is amended to read: 509.13 Subdivision 1. [TEACHERS.] The term "teachers" for the 509.14 purpose of licensure, means all persons employed in a public 509.15 school or education district or by aSCservice cooperative as 509.16 members of the instructional, supervisory, and support staff 509.17 including superintendents, principals, supervisors, secondary 509.18 vocational and other classroom teachers, librarians, counselors, 509.19 school psychologists, school nurses, school social workers, 509.20 audio-visual directors and coordinators, recreation personnel, 509.21 media generalists, media supervisors, and speech therapists. 509.22 Sec. 6. Minnesota Statutes 1996, section 125.03, 509.23 subdivision 6, is amended to read: 509.24 Subd. 6. [ASSESSMENT PROFESSIONALS.] When aschoolboard 509.25 of aschooldistrict with 10,000 pupils or more in average daily 509.26 membership employs a person to administer or interpret 509.27 individual aptitude, intelligence or personality tests, the 509.28 person must hold a graduate level degree related to 509.29 administering and interpreting psychological assessments. 509.30 Sec. 7. Minnesota Statutes 1996, section 125.04, is 509.31 amended to read: 509.32 125.04 [QUALIFIED TEACHER DEFINED.] 509.33 A qualified teacher is one holding a valid license,as509.34hereinafter providedunder this chapter, to perform the 509.35 particular service for which employed in a public school. 509.36 Sec. 8. Minnesota Statutes 1996, section 125.05, 510.1 subdivision 1, is amended to read: 510.2 Subdivision 1. [AUTHORITY TO LICENSE.] (a) The board of 510.3 teachingshallmust license teachers, as defined in section 510.4 125.03, subdivision 1, except for supervisory personnel, as 510.5 defined in section 125.03, subdivision 4. 510.6 (b) The state board of educationshallmust license 510.7 supervisory personnel as defined in section 125.03, subdivision 510.8 4. 510.9 (c) Licenses under the jurisdiction of the board of 510.10 teaching and the state board of education must be issued through 510.11 the licensing section of the departmentof children, families,510.12and learning. 510.13 Sec. 9. Minnesota Statutes 1996, section 125.05, 510.14 subdivision 1a, is amended to read: 510.15 Subd. 1a. [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] 510.16 (a) The board of teachingshallmust issue licenses under its 510.17 jurisdiction to persons the board finds to be qualified and 510.18 competent for their respective positions. 510.19 (b) The boardshallmust require a person to successfully 510.20 complete an examination of skills in reading, writing, and 510.21 mathematics before being granted an initial teaching license to 510.22 provide direct instruction to pupils in prekindergarten, 510.23 elementary, secondary, or special education programs. The board 510.24shallmust require colleges and universities offering a board 510.25 approved teacher preparation program to provide remedial 510.26 assistance that includes a formal diagnostic component to 510.27 persons enrolled in their institution who did not achieve a 510.28 qualifying score on the skills examination, including those for 510.29 whom English is a second language. The colleges and 510.30 universities must provide assistance in the specific academic 510.31 areas of deficiency in which the person did not achieve a 510.32 qualifying score. School districts must provide similar, 510.33 appropriate, and timely remedial assistance that includes a 510.34 formal diagnostic component and mentoring to those persons 510.35 employed by the district who completed their teacher education 510.36 program outside the state of Minnesota, received a one-year 511.1 license to teach in Minnesota and did not achieve a qualifying 511.2 score on the skills examination, including those persons for 511.3 whom English is a second language. 511.4 (c) A person who has completed an approved teacher 511.5 preparation program and obtained a one-year license to teach, 511.6 but has not successfully completed the skills examination, may 511.7 renew the one-year license for two additional one-year periods. 511.8 Each renewal of the one-year license is contingent upon the 511.9 licensee: 511.10 (1) providing evidence of participating in an approved 511.11 remedial assistance program provided by a school district or 511.12 post-secondary institution that includes a formal diagnostic 511.13 component in the specific areas in which the licensee did not 511.14 obtain qualifying scores; and 511.15 (2) attempting to successfully complete the skills 511.16 examination during the period of each one-year license. 511.17 (d) The board of teachingshallmust grant continuing 511.18 licenses only to those persons who have met board criteria for 511.19 granting a continuing license, which includes successfully 511.20 completing the skills examination in reading, writing, and 511.21 mathematics. 511.22 (e) All colleges and universities approved by the board of 511.23 teaching to prepare persons for teacher licensureshallmust 511.24 include in their teacher preparation programs a common core of 511.25 teaching knowledge and skills to be acquired by all persons 511.26 recommended for teacher licensure. This common core shall meet 511.27 the standards developed by the interstate new teacher assessment 511.28 and support consortium in its 1992 "model standards for 511.29 beginning teacher licensing and development." Amendments to 511.30 standards adopted under this paragraph are covered by chapter 14. 511.31 Sec. 10. Minnesota Statutes 1997 Supplement, section 511.32 125.05, subdivision 1c, is amended to read: 511.33 Subd. 1c. [SUPERVISORY AND COACH QUALIFICATIONS; CODE OF 511.34 ETHICS.] The state board of educationshallmust issue licenses 511.35 under its jurisdiction to persons the state board finds to be 511.36 qualified and competent for their respective positions under the 512.1 rules it adopts. The state board of education may develop, by 512.2 rule, a code of ethics for supervisory personnel covering 512.3 standards of professional practices, including areas of ethical 512.4 conduct and professional performance and methods of enforcement. 512.5 Sec. 11. Minnesota Statutes 1996, section 125.05, 512.6 subdivision 6, is amended to read: 512.7 Subd. 6. [LIMITED PROVISIONAL LICENSES.] The board of 512.8 teaching may grant provisional licenses, which shall be valid 512.9 for two years, in fields in which licenses were not issued 512.10 previously or in fields in which a shortage of licensed teachers 512.11 exists. A shortageshall beis defined as a lack of or an 512.12 inadequate supply of licensed personnel within a given licensure 512.13 area in a school district that has notified the board of 512.14 teaching of the shortage and has applied to the board of 512.15 teaching for provisional licenses for that district's licensed 512.16 staff. 512.17 Sec. 12. Minnesota Statutes 1996, section 125.05, 512.18 subdivision 8, is amended to read: 512.19 Subd. 8. [BACKGROUND CHECKS.] (a) The board of teaching 512.20 and the state board of educationshallmust request a criminal 512.21 history background check from the superintendent of the bureau 512.22 of criminal apprehension on all applicants for initial licenses 512.23 under their jurisdiction. An application for a license under 512.24 this section must be accompanied by: 512.25 (1) an executed criminal history consent form, including 512.26 fingerprints; and 512.27 (2) a money order or cashier's check payable to the bureau 512.28 of criminal apprehension for the fee for conducting the criminal 512.29 history background check. 512.30 (b) The superintendent of the bureau of criminal 512.31 apprehension shall perform the background check required under 512.32 paragraph (a) by retrieving criminal history data maintained in 512.33 the criminal justice information system computers and shall also 512.34 conduct a search of the national criminal records repository, 512.35 including the criminal justice data communications network. The 512.36 superintendent is authorized to exchange fingerprints with the 513.1 Federal Bureau of Investigation for purposes of the criminal 513.2 history check. The superintendent shall recover the cost to the 513.3 bureau of a background check through the fee charged to the 513.4 applicant under paragraph (a). 513.5 (c) The board of teaching or the state board of education 513.6 may issue a license pending completion of a background check 513.7 under this subdivision, butshallmust notify the individual 513.8 that the individual's license may be revoked based on the result 513.9 of the background check. 513.10 Sec. 13. Minnesota Statutes 1996, section 125.06, is 513.11 amended to read: 513.12 125.06 [APPLICANTS TRAINED IN OTHER STATES.] 513.13 When a license to teach is authorized to be issued to any 513.14 holder of a diploma or a degree of a Minnesota state university, 513.15 or of the University of Minnesota, or of a liberal arts 513.16 university, or a technical training institution, such license 513.17 may also, in the discretion of the board of teaching or the 513.18 state board of education, whichever has jurisdiction, be issued 513.19 to any holder of a diploma or a degree of a teacher training 513.20 institution of equivalent rank and standing of any other state,. 513.21 The diploma or degree must be granted by virtue of the 513.22 completion of a course in teacher preparation essentially 513.23 equivalent in content to that required by such Minnesota state 513.24 university or the University of Minnesota or a liberal arts 513.25 university in Minnesota or a technical training institution as 513.26 preliminary to the granting of a diploma or a degree of the same 513.27 rank and class. 513.28 Sec. 14. Minnesota Statutes 1996, section 125.09, is 513.29 amended to read: 513.30 125.09 [SUSPENSION OR REVOCATION OF LICENSES.] 513.31 Subdivision 1. [GROUNDS FOR REVOCATION, SUSPENSION, OR 513.32 DENIAL.] The board of teaching or the state board of education, 513.33 whichever has jurisdiction over a teacher's licensure, may, on 513.34 the written complaint of the school board employing a teacher, a 513.35 teacher organization, or any other interested person,which513.36complaint shall specify the nature and character of the charges,514.1 refuse to issue, refuse to renew, suspend, or revoke a teacher's 514.2 license to teach for any of the following causes: 514.3 (1) Immoral character or conduct; 514.4 (2) Failure, without justifiable cause, to teach for the 514.5 term of the teacher's contract; 514.6 (3) Gross inefficiency or willful neglect of duty; or 514.7 (4) Failure to meet licensure requirements; or 514.8 (5) Fraud or misrepresentation in obtaining a license. 514.9 The written complaint must specify the nature and character 514.10 of the charges. For purposes of this subdivision, the board of 514.11 teaching is delegated the authority to suspend or revoke 514.12 coaching licenses under the jurisdiction of the state board of 514.13 education. 514.14 Subd. 4. [MANDATORY REPORTING.] A school boardshallmust 514.15 report to the board of teaching, the state board of education, 514.16 or the board of trustees of the Minnesota state colleges and 514.17 universities, whichever has jurisdiction over the teacher's 514.18 license, when its teacher is discharged or resigns from 514.19 employment after a charge is filed with the school board under 514.20 section 125.17, subdivisions 4, clauses (1), (2), and (3), and 514.21 5, or after charges are filed that are ground for discharge 514.22 under section 125.12, subdivision 8, clauses (a), (b), (c), (d), 514.23 and (e), or when a teacher is suspended or resigns while an 514.24 investigation is pending under section 125.12, subdivision 8, 514.25 clauses (a), (b), (c), (d), and (e); 125.17, subdivisions 4, 514.26 clauses (1), (2), and (3), and 5; or 626.556. The report must 514.27 be made to the appropriate licensing board within ten days after 514.28 the discharge, suspension, or resignation has occurred. 514.29 The licensing board to which the report is madeshallmust 514.30 investigate the report for violation of subdivision 1 and the 514.31 reportingschoolboardshallmust cooperate in the 514.32 investigation. Notwithstanding any provision in chapter 13 or 514.33 any law to the contrary, upon written request from the licensing 514.34 board having jurisdiction over the teacher's license, aschool514.35 board or school superintendent shall provide the licensing board 514.36 with information about the teacher from theschooldistrict's 515.1 files, any termination or disciplinary proceeding, any 515.2 settlement or compromise, or any investigative file. Upon 515.3 written request from the appropriate licensing board, aschool515.4 board or school superintendent may, at the discretion of 515.5 theschoolboard or school superintendent, solicit the written 515.6 consent of a student and the student's parent to provide the 515.7 licensing board with information that may aid the licensing 515.8 board in its investigation and license proceedings. The 515.9 licensing board's request need not identify a student or parent 515.10 by name. The consent of the student and the student's parent 515.11 must meet the requirements of chapter 13 and Code of Federal 515.12 Regulations, title 34, section 99.30. The licensing board may 515.13 provide a consent form to theschooldistrict. Any data 515.14 transmitted to any board under this sectionshall beis private 515.15 data under section 13.02, subdivision 12, notwithstanding any 515.16 other classification of the data when it was in the possession 515.17 of any other agency. 515.18 The licensing board to which a report is madeshallmust 515.19 transmit to the attorney general's office any record or data it 515.20 receives under this subdivision for the sole purpose of having 515.21 the attorney general's office assist that board in its 515.22 investigation. When the attorney general's office has informed 515.23 an employee of the appropriate licensing board in writing that 515.24 grounds exist to suspend or revoke a teacher's license to teach, 515.25 that licensing board must consider suspending or revoking or 515.26 decline to suspend or revoke the teacher's license within 45 515.27 days of receiving a stipulation executed by the teacher under 515.28 investigation or a recommendation from an administrative law 515.29 judge that disciplinary action be taken. 515.30 Subd. 5. [IMMUNITY FROM LIABILITY.] A school board, its 515.31 members in their official capacity, and employees of theschool515.32 district run by the board are immune from civil or criminal 515.33 liability for reporting or cooperating as required under 515.34 subdivision 4, if their actions required under subdivision 4 are 515.35 done in good faith and with due care. 515.36 Sec. 15. Minnesota Statutes 1996, section 125.11, is 516.1 amended to read: 516.2 125.11 [RECORDING OF LICENSES; DISTRICT SUPERINTENDENT.] 516.3 No person shall be accounted a qualified teacher untilsuch516.4 the person has filed for record with the district superintendent 516.5 wheresuchthe person intends to teach a license, or certified 516.6 copythereofof a license, authorizingsuchthe person to teach 516.7 school insuchthe district school system. 516.8 Sec. 16. Minnesota Statutes 1996, section 125.12, 516.9 subdivision 1a, is amended to read: 516.10 Subd. 1a. [NONPROVISIONAL LICENSE DEFINED.] For purposes 516.11 of this section, "nonprovisional license"shall meanmeans an 516.12 entrance, continuing, or life license. 516.13 Sec. 17. Minnesota Statutes 1996, section 125.12, 516.14 subdivision 2, is amended to read: 516.15 Subd. 2. [HIRING, DISMISSING.] School boardsshallmust 516.16 hire or dismiss teachers at duly called meetings. Where a 516.17 husband and wife, brother and sister, or two brothers or 516.18 sisters, constitute a quorum, no contract employing a teacher 516.19 shall be made or authorized except upon the unanimous vote of 516.20 the full board.NoA teacher related by blood or marriage, 516.21 within the fourth degree, computed by the civil law, to a board 516.22 member shall not be employed except by a unanimous vote of the 516.23 full board. The initial employment of the teacher in the 516.24 districtshallmust be by written contract, signed by the 516.25 teacher and by the chair and clerk. All subsequent employment 516.26 of the teacher in the districtshallmust be by written 516.27 contract, signed by the teacher and by the chair and clerk, 516.28 except where there is a master agreement covering the employment 516.29 of the teacher. Contracts for teaching or supervision of 516.30 teaching can be made only with qualified teachers.NoA teacher 516.31 shall not be required to reside within the employingschool516.32 district as a condition to teaching employment or continued 516.33 teaching employment. 516.34 Sec. 18. Minnesota Statutes 1996, section 125.12, 516.35 subdivision 2a, is amended to read: 516.36 Subd. 2a. [EMPLOYMENT IN SUPERVISORY POSITIONS.] 517.1 Notwithstanding other law, a teacher, as defined in section 517.2 179A.03, does not have a right to employment in a district as an 517.3 assistant superintendent, as a principal defined in section 517.4 179A.03, as a confidential or supervisory employee defined in 517.5 section 179A.03, or in a position that is a promotion from the 517.6 position currently held, based on seniority, seniority date, or 517.7 order of employment by the district; provided that. This 517.8 provision shall not alter the reinstatement rights of an 517.9 individual who is placed on leave from an assistant 517.10 superintendent, principal or assistant principal, or supervisory 517.11 or confidential employee position pursuant to this chapter. 517.12 Sec. 19. Minnesota Statutes 1996, section 125.12, 517.13 subdivision 3, is amended to read: 517.14 Subd. 3. [PROBATIONARY PERIOD.] The first three 517.15 consecutive years of a teacher's first teaching experience in 517.16 Minnesota in a singleschooldistrictshall beis deemed to be a 517.17 probationary period of employment, and after completion thereof, 517.18 the probationary period in eachschooldistrict in which the 517.19 teacher is thereafter employed shall be one year. The school 517.20 boardshallmust adopt a plan for written evaluation of teachers 517.21 during the probationary period. Evaluationshallmust occur at 517.22 least three times each year for a teacher performing services on 517.23 120 or more school days, at least two times each year for a 517.24 teacher performing services on 60 to 119 school days, and at 517.25 least one time each year for a teacher performing services on 517.26 fewer than 60 school days. Days devoted to parent-teacher 517.27 conferences, teachers' workshops, and other staff development 517.28 opportunities and days on which a teacher is absent from 517.29 schoolshallmust not be included in determining the number of 517.30 school days on which a teacher performs services. During the 517.31 probationary period any annual contract with any teacher may or 517.32 may not be renewed as the school board shall see fit;517.33provided,. However,thattheschoolboardshallmust give 517.34 any such teacher whose contract it declines to renew for the 517.35 following school year written notice to that effect before June 517.36 1. If the teacher requests reasons for any nonrenewal of a 518.1 teaching contract, theschoolboardshallmust give the teacher 518.2 its reason in writing, including a statement that appropriate 518.3 supervision was furnished describing the nature and the extent 518.4 of such supervision furnished the teacher during the employment 518.5 by the board, within ten days after receiving such request. The 518.6 school board may, after a hearing held upon due notice, 518.7 discharge a teacher during the probationary period for cause, 518.8 effective immediately, under section 123.35, subdivision 5. 518.9 Sec. 20. Minnesota Statutes 1996, section 125.12, 518.10 subdivision 3b, is amended to read: 518.11 Subd. 3b. [PEER REVIEW FOR PROBATIONARY TEACHERS.] A 518.12 school board and an exclusive representative of the teachers in 518.13 the districtshallmust develop a probationary teacher peer 518.14 review process through joint agreement. 518.15 Sec. 21. Minnesota Statutes 1996, section 125.12, 518.16 subdivision 4, is amended to read: 518.17 Subd. 4. [TERMINATION OF CONTRACT AFTER PROBATIONARY 518.18 PERIOD.] A teacher who has completed a probationary period in 518.19 anyschooldistrict, and who has not been discharged or advised 518.20 of a refusal to renew the teacher's contract pursuant to 518.21 subdivision 3, shall have a continuing contract with such 518.22 district. Thereafter, the teacher's contractshallmust remain 518.23 in full force and effect, except as modified by mutual consent 518.24 of the board and the teacher, until terminated by a majority 518.25 roll call vote of the full membership of the board prior to 518.26 April 1 upon one of the grounds specified in subdivision 6 or 518.27 prior to June 1 upon one of the grounds specified in subdivision 518.28 6a or 6b, or until the teacher is discharged pursuant to 518.29 subdivision 8, or by the written resignation of the teacher 518.30 submitted prior to April 1; provided, however, that. If an 518.31 agreement as to the terms and conditions of employment for the 518.32 succeeding school year has not been adopted pursuant to the 518.33 provisions of sections 179A.01 to 179A.25 prior to March 1, the 518.34 teacher's right of resignationshall beis extended to the 30th 518.35 calendar day following the adoption of said contract in 518.36 compliance with section 179A.20, subdivision 5. Such written 519.1 resignation by the teachershall beis effective as of June 30 519.2 if submitted prior to that date and the teachers' right of 519.3 resignation for the school year then beginning shall cease on 519.4 July 15. Before a teacher's contract is terminated by the 519.5 board, the boardshallmust notify the teacher in writing and 519.6 state its ground for the proposed termination in reasonable 519.7 detail together with a statement that the teacher may make a 519.8 written request for a hearing before the board within 14 days 519.9 after receipt of such notification. If the grounds are those 519.10 specified in subdivision 6 or 8, the notice must also state a 519.11 teacher may request arbitration under subdivision 9a. Within 14 519.12 days after receipt of this notification the teacher may make a 519.13 written request for a hearing before the board or an arbitrator 519.14 and it shall be granted upon reasonable notice to the teacher of 519.15 the date set for hearing, before final action is taken. If no 519.16 hearing is requested within such period, it shall be deemed 519.17 acquiescence by the teacher to the board's action. Such 519.18 termination shall take effect at the close of the school year in 519.19 which the contract is terminated in the manner aforesaid. Such 519.20 contract may be terminated at any time by mutual consent of the 519.21 board and the teacher and this sectionshalldoes not affect the 519.22 powers of a board to suspend, discharge, or demote a teacher 519.23 under and pursuant to other provisions of law. 519.24 Sec. 22. Minnesota Statutes 1996, section 125.12, 519.25 subdivision 6, is amended to read: 519.26 Subd. 6. [GROUNDS FOR TERMINATION.] A continuing contract 519.27 may be terminated, effective at the close of the school year, 519.28 upon any of the following grounds: 519.29 (a) Inefficiency; 519.30 (b) Neglect of duty, or persistent violation of school 519.31 laws, rules, regulations, or directives; 519.32 (c) Conduct unbecoming a teacher which materially impairs 519.33 the teacher's educational effectiveness; 519.34 (d) Other good and sufficient grounds rendering the teacher 519.35 unfit to perform the teacher's duties. 519.36 A contractshallmust not be terminated upon one of the 520.1 grounds specified in clause (a), (b), (c), or (d), unless the 520.2 teachershall have failedfails to correct the deficiency after 520.3 being given written notice of the specific items of complaint 520.4 and reasonable time within which to remedy them. 520.5 Sec. 23. Minnesota Statutes 1996, section 125.12, 520.6 subdivision 6a, is amended to read: 520.7 Subd. 6a. [NEGOTIATED UNREQUESTED LEAVE OF ABSENCE.] The 520.8 school board and the exclusive bargaining representative of the 520.9 teachers may negotiate a plan providing for unrequested leave of 520.10 absence without pay or fringe benefits for as many teachers as 520.11 may be necessary because of discontinuance of position, lack of 520.12 pupils, financial limitations, or merger of classes caused by 520.13 consolidation of districts. Failing to successfully negotiate 520.14 such a plan, the provisions of subdivision 6b shall apply. The 520.15 negotiated planshallmust not include provisions which would 520.16 result in the exercise of seniority by a teacher holding a 520.17 provisional license, other than a vocational education license, 520.18 contrary to the provisions of subdivision 6b, clause (c), or the 520.19 reinstatement of a teacher holding a provisional license, other 520.20 than a vocational education license, contrary to the provisions 520.21 of subdivision 6b, clause (e). The provisions of section 520.22 179A.16shalldo not apply for the purposes of this subdivision. 520.23 Sec. 24. Minnesota Statutes 1996, section 125.12, 520.24 subdivision 6b, is amended to read: 520.25 Subd. 6b. [UNREQUESTED LEAVE OF ABSENCE.] Theschoolboard 520.26 may place on unrequested leave of absence, without pay or fringe 520.27 benefits, as many teachers as may be necessary because of 520.28 discontinuance of position, lack of pupils, financial 520.29 limitations, or merger of classes caused by consolidation of 520.30 districts. The unrequested leaveshall beis effective at the 520.31 close of the school year. In placing teachers on unrequested 520.32 leave, the boardshall beis governed by the following 520.33 provisions: 520.34 (a) The board may place probationary teachers on 520.35 unrequested leave first in the inverse order of their 520.36 employment.NoA teacher who has acquired continuing contract 521.1 rightsshallmust not be placed on unrequested leave of absence 521.2 while probationary teachers are retained in positions for which 521.3 the teacher who has acquired continuing contract rights is 521.4 licensed; 521.5 (b) Teachers who have acquired continuing contract rights 521.6 shall be placed on unrequested leave of absence in fields in 521.7 which they are licensed in the inverse order in which they were 521.8 employed by the school district. In the case of equal 521.9 seniority, the order in which teachers who have acquired 521.10 continuing contract rights shall be placed on unrequested leave 521.11 of absence in fields in which they are licensedshall beis 521.12 negotiable; 521.13 (c) Notwithstanding the provisions of clause (b),noa 521.14 teachershall beis not entitled to exercise any seniority when 521.15 that exercise results in that teacher being retained by the 521.16 district in a field for which the teacher holds only a 521.17 provisional license, as defined by the board of teaching, unless 521.18 that exercise of seniority results in the placement on 521.19 unrequested leave of absence of another teacher who also holds a 521.20 provisional license in the same field. The provisions of this 521.21 clauseshalldo not apply to vocational education licenses; 521.22 (d) Notwithstanding clauses (a), (b) and (c), if the 521.23 placing of a probationary teacher on unrequested leave before a 521.24 teacher who has acquired continuing rights, the placing of a 521.25 teacher who has acquired continuing contract rights on 521.26 unrequested leave before another teacher who has acquired 521.27 continuing contract rights but who has greater seniority, or the 521.28 restriction imposed by the provisions of clause (c) would place 521.29 the district in violation of its affirmative action program, the 521.30 district may retain the probationary teacher, the teacher with 521.31 less seniority, or the provisionally licensed teacher; 521.32 (e) Teachers placed on unrequested leave of absenceshall521.33 must be reinstated to the positions from which they have been 521.34 given leaves of absence or, if not available, to other available 521.35 positions in the school district in fields in which they are 521.36 licensed. Reinstatementshallmust be in the inverse order of 522.1 placement on leave of absence.NoA teachershallmust not be 522.2 reinstated to a position in a field in which the teacher holds 522.3 only a provisional license, other than a vocational education 522.4 license, while another teacher who holds a nonprovisional 522.5 license in the same field remains on unrequested leave. The 522.6 order of reinstatement of teachers who have equal seniority and 522.7 who are placed on unrequested leave in the same school 522.8 yearshall beis negotiable; 522.9 (f)NoAppointment of a new teachershallmust not be made 522.10 while there is available, on unrequested leave, a teacher who is 522.11 properly licensed to fill such vacancy, unless the teacher fails 522.12 to advise the school board within 30 days of the date of 522.13 notification that a position is available to that teacher who 522.14 may return to employment and assume the duties of the position 522.15 to which appointed on a future date determined by the board; 522.16 (g) A teacher placed on unrequested leave of absence may 522.17 engage in teaching or any other occupation during the period of 522.18 this leave; 522.19 (h) The unrequested leave of absenceshallmust not impair 522.20 the continuing contract rights of a teacher or result in a loss 522.21 of credit for previous years of service; 522.22 (i) The unrequested leave of absence of a teacher who is 522.23 placed on unrequested leave of absence and who is not reinstated 522.24 shall continue for a period of five years, after which the right 522.25 to reinstatement shall terminate; provided. The teacher's right 522.26 to reinstatement shall also terminate if the teacher fails to 522.27 file with the board by April 1 of any year a written statement 522.28 requesting reinstatement; 522.29 (j) The same provisions applicable to terminations of 522.30 probationary or continuing contracts in subdivisions 3 and 4 522.31shallmust apply to placement on unrequested leave of absence; 522.32 (k) Nothing in this subdivision shall be construed to 522.33 impair the rights of teachers placed on unrequested leave of 522.34 absence to receive reemployment insurance if otherwise eligible. 522.35 Sec. 25. Minnesota Statutes 1996, section 125.12, 522.36 subdivision 7, is amended to read: 523.1 Subd. 7. [SUSPENSION AND LEAVE OF ABSENCE FOR HEALTH 523.2 REASONS.] Affliction with active tuberculosis or other 523.3 communicable disease, mental illness, drug or alcoholic 523.4 addiction, or other serious incapacity shall be grounds for 523.5 temporary suspension and leave of absence while the teacher is 523.6 suffering from such disability. Unless the teacher consents, 523.7 such actionshallmust be taken only upon evidence that 523.8 suspension is required from a physician who has examined the 523.9 teacher. The physicianshallmust be competent in the field 523.10 involved andshallmust be selected by the teacher from a list 523.11 of three provided by the school board, and the examinationshall523.12 must be at the expense of the school district. A copy of the 523.13 report of the physician shall be furnished the teacher upon 523.14 request. If the teacher fails to submit to the examination 523.15 within the prescribed time, the board may discharge the teacher, 523.16 effective immediately. In the event of mental illness, if the 523.17 teacher submits to such an examination and the examining 523.18 physician's or psychiatrist's statement is unacceptable to the 523.19 teacher or the board, a panel of three physicians or 523.20 psychiatristsshallmust be selected to examine the teacher at 523.21 the board's expense. The board and the teacher shall each 523.22 select a member of this panel, and these two members shall 523.23 select a third member. The panelshallmust examine the teacher 523.24 and submit a statement of its findings and conclusions to the 523.25 board. Upon receipt and consideration of the statement from the 523.26 panel the board may suspend the teacher. The boardshallmust 523.27 notify the teacher in writing of such suspension and the reasons 523.28 therefor. During the leave of absence, the district must pay 523.29 the teachershall be paidsick leave benefitsby the districtup 523.30 to the amount of unused accumulated sick leave, and after it is 523.31 exhausted, the district may in its discretion pay additional 523.32 benefits. The teachershallmust be reinstated to the teacher's 523.33 position upon evidence from such a physician of sufficient 523.34 recovery to be capable of resuming performance of duties in a 523.35 proper manner. In the event that the teacher does not qualify 523.36 for reinstatement within 12 months after the date of suspension, 524.1 the continuing disability may be a ground for discharge under 524.2 subdivision 8. 524.3 Sec. 26. Minnesota Statutes 1996, section 125.12, 524.4 subdivision 8, is amended to read: 524.5 Subd. 8. [IMMEDIATE DISCHARGE.] Aschoolboard may 524.6 discharge a continuing-contract teacher, effective immediately, 524.7 upon any of the following grounds: 524.8 (a) Immoral conduct, insubordination, or conviction of a 524.9 felony; 524.10 (b) Conduct unbecoming a teacher which requires the 524.11 immediate removal of the teacher from classroom or other duties; 524.12 (c) Failure without justifiable cause to teach without 524.13 first securing the written release of the school board; 524.14 (d) Gross inefficiency which the teacher has failed to 524.15 correct after reasonable written notice; 524.16 (e) Willful neglect of duty; or 524.17 (f) Continuing physical or mental disability subsequent to 524.18 a 12 months leave of absence and inability to qualify for 524.19 reinstatement in accordance with subdivision 7. 524.20 For purposes of this subdivision, conduct unbecoming a 524.21 teacher includes an unfair discriminatory practice described in 524.22 section 363.03, subdivision 5. 524.23 Prior to discharging a teacher the boardshallmust notify 524.24 the teacher in writing and state its ground for the proposed 524.25 discharge in reasonable detail. Within ten days after receipt 524.26 of this notification the teacher may make a written request for 524.27 a hearing before the board and it shall be granted before final 524.28 action is taken. The board may, however, suspend a teacher with 524.29 pay pending the conclusion of such hearing and determination of 524.30 the issues raisedthereinin the hearing after charges have been 524.31 filed which constitute ground for discharge. 524.32 Sec. 27. Minnesota Statutes 1996, section 125.12, 524.33 subdivision 9, is amended to read: 524.34 Subd. 9. [HEARING PROCEDURES.] Any hearing held pursuant 524.35 to this sectionshallmust be held upon appropriate and timely 524.36 notice to the teacher, and any hearing held pursuant to 525.1 subdivision 6 or 8shallmust be private or public at the 525.2 discretion of the teacher. A hearing held pursuant to 525.3 subdivision 6bshallmust be public and may be consolidated by 525.4 the school board. At the hearing, the board and the teacher may 525.5 each be represented by counsel at each party's own expense, and 525.6 such counsel may examine and cross-examine witnesses and present 525.7 arguments. The boardshallmust first present evidence to 525.8 sustain the grounds for termination or discharge and then 525.9 receive evidence presented by the teacher. Each party may then 525.10 present rebuttal evidence. Dismissal of the teachershallmust 525.11 be based upon substantial and competent evidence in the record. 525.12 All witnesses shall be sworn upon oath administered by the 525.13 presiding officer of the board. The clerk of the board shall 525.14 issue subpoenas for witnesses or the production of records 525.15 pertinent to the grounds upon the request of either the board or 525.16 the teacher. The boardshallmust employ a court reporter to 525.17 record the proceedings at the hearing, and either party may 525.18 obtain a transcriptthereofof the hearing at its own expense. 525.19 Sec. 28. Minnesota Statutes 1996, section 125.12, 525.20 subdivision 9a, is amended to read: 525.21 Subd. 9a. [HEARING AND DETERMINATION BY ARBITRATOR.] A 525.22 teacher whose termination is proposed under subdivision 4 on 525.23 grounds specified in subdivision 6, or whose discharge is 525.24 proposed under subdivision 8, may elect a hearing before an 525.25 arbitrator instead of the school board. The hearing is governed 525.26 by this subdivision. 525.27 (a) The teacher must make a written request for a hearing 525.28 before an arbitrator within 14 days after receiving notification 525.29 of proposed termination on grounds specified in subdivision 6 or 525.30 within ten days of receiving notification of proposed discharge 525.31 under subdivision 8. If a request for a hearing does not 525.32 specify that the hearing be before an arbitrator, itshall beis 525.33 considered to be a request for a hearing before the school board. 525.34 (b) If the teacher and the school board are unable to 525.35 mutually agree on an arbitrator, theschoolboardshallmust 525.36 request from the bureau of mediation services a list of five 526.1 persons to serve as an arbitrator. If the matter to be heard is 526.2 a proposed termination on grounds specified in subdivision 6, 526.3 arbitrators on the list must be available to hear the matter and 526.4 make a decision within a time frame that will allow theschool526.5 board to comply with all statutory timelines relating to 526.6 termination. If the teacher and theschoolboard are unable to 526.7 mutually agree on an arbitrator from the list provided, the 526.8 parties shall alternately strike names from the list until the 526.9 name of one arbitrator remains. The person remaining after the 526.10 striking procedureshallmust be the arbitrator. If the parties 526.11 are unable to agree on who shall strike the first name, the 526.12 question must be decided by a flip of a coin. The teacher and 526.13 the school boardshallmust share equally the costs and fees of 526.14 the arbitrator. 526.15 (c) The arbitrator shall determine, by a preponderance of 526.16 the evidence, whether the grounds for termination or discharge 526.17 specified in subdivision 6 or 8 exist to support the proposed 526.18 termination or discharge. A lesser penalty than termination or 526.19 discharge may be imposed by the arbitrator only to the extent 526.20 that either party proposes such lesser penalty in the 526.21 proceeding. In making the determination, the arbitration 526.22 proceeding is governed by sections 572.11 to 572.17 and by the 526.23 collective bargaining agreement applicable to the teacher. 526.24 (d) An arbitration hearing conducted under this subdivision 526.25 is a meeting for preliminary consideration of allegations or 526.26 charges within the meaning of section 471.705, subdivision 1d, 526.27 clause (c), andshallmust be closed, unless the teacher 526.28 requests it to be open. 526.29 (e) The arbitrator's award is final and binding on the 526.30 parties, subject to sections 572.18 to 572.26. 526.31 Sec. 29. Minnesota Statutes 1996, section 125.12, 526.32 subdivision 10, is amended to read: 526.33 Subd. 10. [DECISION.] After the hearing, the board 526.34shallmust issue a written decision and order. If the board 526.35 orders termination of a continuing contract or discharge of a 526.36 teacher, its decisionshallmust include findings of fact based 527.1 upon competent evidence in the record andshallmust be served 527.2 on the teacher, accompanied by an order of termination or 527.3 discharge, prior to April 1 in the case of a contract 527.4 termination for grounds specified in subdivision 6, prior to 527.5 June 1 for grounds specified in subdivision 6a or 6b, or within 527.6 ten days after conclusion of the hearing in the case of a 527.7 discharge. If the decision of the board or of a reviewing court 527.8 is favorable to the teacher, the proceedingsshallmust be 527.9 dismissed and the decision entered in the board minutes, and all 527.10 references to such proceedingsshallmust be excluded from the 527.11 teacher's record file. 527.12 Sec. 30. Minnesota Statutes 1996, section 125.12, 527.13 subdivision 11, is amended to read: 527.14 Subd. 11. [JUDICIAL REVIEW.] The pendency of judicial 527.15 proceedingsshallmust not be ground for postponement of the 527.16 effective date of theschoolboard's order, but if judicial 527.17 review eventuates in reinstatement of the teacher, the board 527.18shallmust pay the teacher all compensation withheld as a result 527.19 of the termination or dismissal order. 527.20 Sec. 31. Minnesota Statutes 1996, section 125.12, 527.21 subdivision 13, is amended to read: 527.22 Subd. 13. [EXCEPTION.] This sectionshalldoes not apply 527.23 to any district in a city of the first class. 527.24 Sec. 32. Minnesota Statutes 1997 Supplement, section 527.25 125.12, subdivision 14, is amended to read: 527.26 Subd. 14. [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 527.27 EXPUNGEMENT.] All evaluations and files generated within a 527.28 school district relating to each individual teachershallmust 527.29 be available to each individual teacher upon written request. 527.30 Effective January 1, 1976, all evaluations and files, wherever 527.31 generated, relating to each individual teachershallmust be 527.32 available to each individual teacher upon written request. The 527.33 teacher shall have the right to reproduce any of the contents of 527.34 the files at the teacher's expense and to submit for inclusion 527.35 in the file written information in response to any material 527.36 contained therein. 528.1 Aschooldistrict may destroy the files as provided by law 528.2 andshallmust expunge from the teacher's file any material 528.3 found to be false or inaccurate through the grievance procedure 528.4 required pursuant to section 179A.20, subdivision 4; provided,. 528.5 The grievance procedure promulgated by the director of the 528.6 bureau of mediation services, pursuant to section 179A.04, 528.7 subdivision 3, clause (h),shall applyapplies to those 528.8 principals and supervisory employees not included in an 528.9 appropriate unit as defined in section 179A.03. Expungement 528.10 proceedingsshallmust be commenced within the time period 528.11 provided in the collective bargaining agreement for the 528.12 commencement of a grievance. If no time period is provided in 528.13 the bargaining agreement, the expungement proceedingsshallmust 528.14 commence within 15 days after the teacher has knowledge of the 528.15 inclusion in the teacher's file of the material the teacher 528.16 seeks to have expunged. 528.17 Sec. 33. Minnesota Statutes 1996, section 125.121, 528.18 subdivision 1, is amended to read: 528.19 Subdivision 1. [TERMINATION; HEARING.] Before a district 528.20 terminates the coaching duties of an employee who is required to 528.21 hold a license as an athletic coach from the state board of 528.22 education, the districtshallmust notify the employee in 528.23 writing and state its reason for the proposed termination. 528.24 Within 14 days of receiving this notification, the employee may 528.25 request in writing a hearing on the termination before the 528.26 board. If a hearing is requested, the boardshallmust hold a 528.27 hearing within 25 days according to the hearing procedures 528.28 specified in section 125.12, subdivision 9, and the 528.29 terminationshall not beis finalexceptupon the order of the 528.30 board after the hearing. 528.31 Sec. 34. Minnesota Statutes 1996, section 125.121, 528.32 subdivision 2, is amended to read: 528.33 Subd. 2. [FINAL DECISION.] Within ten days after the 528.34 hearing, the boardshallmust issue a written decision regarding 528.35 the termination. If the board decides to terminate the 528.36 employee's coaching duties, the decisionshallmust state the 529.1 reason on which it is based and include findings of fact based 529.2 upon competent evidence in the record. The board may terminate 529.3 the employee's duties or not, as it sees fit, for any reason 529.4 which is found to be true based on substantial and competent 529.5 evidence in the record. 529.6 Sec. 35. Minnesota Statutes 1996, section 125.135, is 529.7 amended to read: 529.8 125.135 [STAFF EXCHANGE PROGRAM.] 529.9 Subdivision 1. [ESTABLISHMENT.] A staff exchange program 529.10 is established to allow localschooldistricts to arrange 529.11 temporary and voluntary exchanges among members of their 529.12 kindergarten through grade 12 instructional and administrative 529.13 staffs. The purpose of the program is to provide participants 529.14 with an understanding of the educational concerns of other local 529.15 school districts, including concerns of class organization, 529.16 curriculum development, instructional practices, and 529.17 characteristics of the student population. 529.18 The educational needs and interests of the hostschool529.19 district and the training, experience, and interests of the 529.20 participants must determine the assignments of the participants 529.21 in the host district. Participants may teach courses, provide 529.22 counseling and tutorial services, work with teachers to better 529.23 prepare students for future educational experiences, serve an 529.24 underserved population in the district, or assist with 529.25 administrative functions. The assignments participants perform 529.26 for the host district must be comparable to the assignments the 529.27 participants perform for the district employing the 529.28 participants. Participation in the exchange program need not be 529.29 limited to one school or one school district and may involve 529.30 other education organizations including education districts and 529.31 SCs. 529.32 Subd. 2. [PROGRAM REQUIREMENTS.] All staff exchanges made 529.33 under this section are subject to the requirements in this 529.34 subdivision. 529.35 (a) A school district employing a participating staff 529.36 member must not adversely affect the staff member's salary, 530.1 seniority, or other employment benefits, or otherwise penalize 530.2 the staff member for participating in the program. 530.3 (b) Upon completion or termination of an exchange, aschool530.4 district employing a participating staff member must permit the 530.5 staff member to return to the same assignment the staff member 530.6 performed in the district before the exchange, if available, or, 530.7 if not, a similar assignment. 530.8 (c) Aschooldistrict employing a participating staff 530.9 member must continue to provide the staff member's salary and 530.10 other employment benefits during the period of the exchange. 530.11 (d) A participant must be licensed and tenured. 530.12 (e) Participation in the program must be voluntary. 530.13 (f) The length of participation in the program must be no 530.14 less than one-half of a school year and no more than one school 530.15 year, and any premature termination of participation must be 530.16 upon the mutual agreement of the participant and the 530.17 participatingschooldistrict. 530.18 (g) A participant is responsible for transportation to and 530.19 from the hostschooldistrict. 530.20 (h) This subdivision does not abrogate or change rights of 530.21 staff members participating in the staff exchange program or the 530.22 terms of an agreement between the exclusive representative of 530.23 the school district employees and theschooldistrict. 530.24 (i) Participatingschooldistricts may enter into 530.25 supplementary agreements with the exclusive representative of 530.26 the school district employees to accomplish the purpose of this 530.27 section. 530.28 Subd. 3. [APPLICATION PROCEDURES.] The school board of 530.29 aschooldistrict must decide by resolution to participate in 530.30 the staff exchange program. A staff member wishing to 530.31 participate in the exchange program must submit an application 530.32 to the school district employing the staff member. The district 530.33 must, in a timely and appropriate manner, provide to the 530.34 exclusive bargaining representatives of teachers in the state 530.35 the number and names of prospective participants within the 530.36 district, the assignments available within the district, and the 531.1 length of time for each exchange. The exclusive bargaining 531.2 representatives are requested to cooperatively participate in 531.3 the coordination of exchanges to facilitate exchanges across all 531.4 geographical regions of the state. Prospective participants 531.5 must contact teachers and districts with whom they are 531.6 interested in making an exchange. The prospective participants 531.7 must make all arrangements to accomplish their exchange and the 531.8 superintendents of the participating districts must approve the 531.9 arrangements for the exchange in writing. 531.10 Sec. 36. Minnesota Statutes 1996, section 125.138, 531.11 subdivision 1, is amended to read: 531.12 Subdivision 1. [ESTABLISHMENT.] A program of faculty 531.13 collaborationshall beis established to allow Minnesota school 531.14 districts and post-secondary institutions to arrange temporary 531.15 placements in each other's institutions. These arrangements 531.16 must be made on a voluntary cooperative basis between a school 531.17 district and post-secondary institution, or between 531.18 post-secondary institutions. Exchanges between post-secondary 531.19 institutions may occur among campuses in the same system or in 531.20 different systems. 531.21 Sec. 37. Minnesota Statutes 1996, section 125.138, 531.22 subdivision 3, is amended to read: 531.23 Subd. 3. [SALARIES; BENEFITS; CERTIFICATION.] Temporary 531.24 placements made under the program must not have a negative 531.25 effect on participants' salaries, seniority, or other benefits. 531.26 Notwithstanding sections 123.35, subdivision 6, and 125.04, a 531.27 member of the staff of a post-secondary institution may teach in 531.28 an elementary or secondary school or perform a service, agreed 531.29 upon according to this section, for which a license would 531.30 otherwise be required without holding the applicable license. 531.31 In addition, a licensed educator employed by a school district 531.32 may teach or perform a service, agreed upon according to this 531.33 section, at a post-secondary institution without meeting the 531.34 applicable qualifications of the post-secondary institution. 531.35 Aschooldistrict is not subject to section 124.19, subdivision 531.36 3, as a result of entering into an agreement according to this 532.1 section that enables a post-secondary educator to teach or 532.2 provide services in the district. All arrangements and details 532.3 regarding the exchange must be mutually agreed to by each 532.4 participating school district and post-secondary institution 532.5 before implementation. 532.6 Sec. 38. Minnesota Statutes 1996, section 125.138, 532.7 subdivision 4, is amended to read: 532.8 Subd. 4. [EDUCATORS' EMPLOYMENT; CONTINUATION.] An 532.9 educator who held a temporary position or an exchanged position 532.10 under this sectionshallmust be continued in or restored to the 532.11 position previously held, or to a position of like seniority, 532.12 status, and pay upon return. Retirement benefits under an 532.13 employer-sponsored pension or retirement planshallmust not be 532.14 reduced because of time spent on an exchange or temporary 532.15 position under section 125.138. 532.16 Sec. 39. Minnesota Statutes 1996, section 125.138, 532.17 subdivision 5, is amended to read: 532.18 Subd. 5. [ENTITLEMENT TO BENEFITS AND POSITION.] An 532.19 educator who is continued in or restored to a position in 532.20 accordance with subdivision 4: 532.21 (1)shallmust be continued or restored without loss of 532.22 seniority; and 532.23 (2) may participate in insurance or other benefits offered 532.24 by the employer under its established rules and practices. 532.25 Sec. 40. Minnesota Statutes 1996, section 125.16, is 532.26 amended to read: 532.27 125.16 [TEACHERS' REPORTS.] 532.28NoAn ordershallmust not be issued for the payment of the 532.29 wages of any teacher while the teacher is in default in making 532.30 reports or in returning the teacher's register. The teachers, 532.31 principals, and superintendents shall make such reports as may 532.32 be required by law or the rules of the state or local board 532.33 under like penalty. 532.34 Sec. 41. Minnesota Statutes 1996, section 125.17, 532.35 subdivision 2, is amended to read: 532.36 Subd. 2. [PROBATIONARY PERIOD; DISCHARGE OR DEMOTION.] All 533.1 teachers in the public schools in cities of the first class 533.2 during the first three years of consecutive employment shall be 533.3 deemed to be in a probationary period of employment during which 533.4 period any annual contract with any teacher may, or may not, be 533.5 renewed as the school board, after consulting with the peer 533.6 review committee charged with evaluating the probationary 533.7 teachers under subdivision 2a or 2b, shall see fit. The school 533.8 site management team or the school board if there is no school 533.9 site management team,shallmust adopt a plan for a written 533.10 evaluation of teachers during the probationary period according 533.11 to subdivision 2a. Evaluation by the peer review committee 533.12 charged with evaluating probationary teachers under subdivision 533.13 2ashallmust occur at least three times each year for a teacher 533.14 performing services on 120 or more school days, at least two 533.15 times each year for a teacher performing services on 60 to 119 533.16 school days, and at least one time each year for a teacher 533.17 performing services on fewer than 60 school days. Days devoted 533.18 to parent-teacher conferences, teachers' workshops, and other 533.19 staff development opportunities and days on which a teacher is 533.20 absent from schoolshallmust not be included in determining the 533.21 number of school days on which a teacher performs services. The 533.22 school board may, during such probationary period, discharge or 533.23 demote a teacher for any of the causes as specified in this 533.24 code. The board must give a written statement of the cause of 533.25 such discharge or demotionshall be givento the teacherby the533.26school boardat least 30 days before such removal or 533.27 demotionshall becomebecomes effective, and. The teacher so 533.28 notifiedshall havehas no right of appealtherefromfrom the 533.29 discharge or demotion. 533.30 Sec. 42. Minnesota Statutes 1996, section 125.17, 533.31 subdivision 2b, is amended to read: 533.32 Subd. 2b. [PEER REVIEW FOR PROBATIONARY TEACHERS.] A 533.33schoolboard and an exclusive representative of the teachers in 533.34 the districtshallmust develop a probationary teacher peer 533.35 review process through joint agreement. 533.36 Sec. 43. Minnesota Statutes 1996, section 125.17, 534.1 subdivision 3, is amended to read: 534.2 Subd. 3. [PERIOD OF SERVICE AFTER PROBATIONARY PERIOD; 534.3 DISCHARGE OR DEMOTION.] After the completion of such 534.4 probationary period, without discharge, such teachers as are 534.5 thereupon reemployed shall continue in service and hold their 534.6 respective position during good behavior and efficient and 534.7 competent service andshallmust not be discharged or demoted 534.8 except for cause after a hearing. 534.9AnyA probationary teachershall beis deemed to have been 534.10 reemployed for the ensuing school year, unless the school board 534.11 in charge of such schoolshall givegave such teacher notice in 534.12 writing before June 1 of the termination of such employment. In 534.13 event of such notice the employmentshall terminateterminates 534.14 at the close of the school sessions of the current school year. 534.15 Sec. 44. Minnesota Statutes 1996, section 125.17, 534.16 subdivision 3b, is amended to read: 534.17 Subd. 3b. [PEER REVIEW FOR CONTINUING CONTRACT TEACHERS.] 534.18 A school board and an exclusive representative of the teachers 534.19 in the districtshallmust develop a peer review process for 534.20 nonprobationary teachers through joint agreement. 534.21 Sec. 45. Minnesota Statutes 1996, section 125.17, 534.22 subdivision 4, is amended to read: 534.23 Subd. 4. [GROUNDS FOR DISCHARGE OR DEMOTION.] Causes for 534.24 the discharge or demotion of a teacher either during or after 534.25 the probationary periodshallmust be: 534.26 (1) Immoral character, conduct unbecoming a teacher, or 534.27 insubordination; 534.28 (2) Failure without justifiable cause to teach without 534.29 first securing the written release of the school board having 534.30 the care, management, or control of the school in which the 534.31 teacher is employed; 534.32 (3) Inefficiency in teaching or in the management of a 534.33 school; 534.34 (4) Affliction with active tuberculosis or other 534.35 communicable diseaseshallmust be considered as cause for 534.36 removal or suspension while the teacher is suffering from such 535.1 disability; or 535.2 (5) Discontinuance of position or lack of pupils. 535.3 For purposes of this subdivision, conduct unbecoming a 535.4 teacher includes an unfair discriminatory practice described in 535.5 section 363.03, subdivision 5. 535.6 Sec. 46. Minnesota Statutes 1996, section 125.17, 535.7 subdivision 5, is amended to read: 535.8 Subd. 5. [HEARING OF CHARGES AGAINST TEACHER.] The charges 535.9 against a teachershallmust be in writing and signed by the 535.10 person making the same and then filed with the secretary or 535.11 clerk of the school board having charge of the school in which 535.12 the teacher is employed.SuchThe school board, before 535.13 discharging or demoting a teacher,shallmust then accord the 535.14 teacher against whomsuchcharges have been filed a full hearing 535.15 and give to the teacher at least ten days' notice in writing of 535.16 the time and place of such hearing; such. The notice may be 535.17 served personally or sent by certified mail addressed tosuch535.18 the teacher at the teacher's last known post office address;535.19provided, that. If the chargebeis made byanya person 535.20 not in connection with the school system the charge may be 535.21 disregarded bysuchthe school board. If the grounds are those 535.22 specified in subdivision 4, clause (1), (2), (3), or (4), the 535.23 notice must also state a teacher may request arbitration under 535.24 subdivision 10a.Upon such hearing being held suchAt the 535.25 hearing, the school board oranarbitrator shall hear all 535.26 evidence that may be adduced in support of the charges and for 535.27 the teacher's defensetheretoto the charges. Either 535.28 partyshall havehas the right to have a written record of the 535.29 hearing at the expense of the board and to have witnesses 535.30 subpoenaed and all witnesses so subpoenaedshallmust be 535.31 examined under oath. Any member of the school board conducting 535.32 such a hearingshall havehas authority to issue subpoenas and 535.33 to administer oaths to witnesses. 535.34 Sec. 47. Minnesota Statutes 1996, section 125.17, 535.35 subdivision 6, is amended to read: 535.36 Subd. 6. [COUNSEL; EXAMINATION OF WITNESSES.] Each party 536.1 appearing before the school boardshall havehas the right to be 536.2 represented by counsel, and such counsel may examine and 536.3 cross-examine witnesses and present arguments. 536.4 Sec. 48. Minnesota Statutes 1996, section 125.17, 536.5 subdivision 7, is amended to read: 536.6 Subd. 7. [HEARINGS.] All hearings before the school 536.7 boardshallmust be private or may be public at the decision of 536.8 the teacher against whom such charges have been filed. 536.9 Sec. 49. Minnesota Statutes 1996, section 125.17, 536.10 subdivision 8, is amended to read: 536.11 Subd. 8. [DECISION, WHEN RENDERED.]SuchThe hearing must 536.12 be concluded and a decision in writing, stating the grounds on 536.13 which it is based, rendered within 25 days after giving of such 536.14 notice. Where the hearing is before a school board the teacher 536.15 may be discharged or demoted upon the affirmative vote of a 536.16 majority of the members of theschoolboard. If the charges, or 536.17 any of such, are found to be true, theschoolboard conducting 536.18 the hearingshallmust discharge, demote, or suspend the 536.19 teacher, as seems to be for the best interest of the school.No536.20 A teachershallmust not be discharged for either of the causes 536.21 specified in subdivision 4, clause (3), except during the school 536.22 year, and then only upon charges filed at least four months 536.23 before the close of the school sessions of such school year. 536.24 Sec. 50. Minnesota Statutes 1996, section 125.17, 536.25 subdivision 9, is amended to read: 536.26 Subd. 9. [CHARGES EXPUNGED FROM RECORDS.] In all cases 536.27 where the final decision is in favor of the teacher the charge 536.28 or chargesshallmust be physically expunged from the records. 536.29 Sec. 51. Minnesota Statutes 1996, section 125.17, 536.30 subdivision 10, is amended to read: 536.31 Subd. 10. [SUSPENSION PENDING HEARING; SALARY.]Upon the536.32filing of chargesAfter charges are filed against a teacher, the 536.33 school board may suspend the teacher from regular duty. If,536.34upon final decision,the teacher is suspended or removed after 536.35 the final decision, theschoolboard may in its discretion 536.36 determine the teacher's salary or compensation as of the time of 537.1 filing the charges. If the final decision is favorable to the 537.2 teacherthere shall be no abatement of, the board must not abate 537.3 the teacher's salary or compensation. 537.4 Sec. 52. Minnesota Statutes 1996, section 125.17, 537.5 subdivision 10a, is amended to read: 537.6 Subd. 10a. [HEARING AND DETERMINATION BY ARBITRATOR.] A 537.7 teacher against whom charges have been filed alleging any cause 537.8 for discharge or demotion specified in subdivision 4, clause 537.9 (1), (2), (3), or (4), may elect a hearing before an arbitrator 537.10 instead of the school board. The hearing is governed by this 537.11 subdivision. 537.12 (a) The teacher must make a written request for a hearing 537.13 before an arbitrator within ten days after receiving a written 537.14 notice of the filing of charges required by subdivision 5. 537.15 Failure to request a hearing before an arbitrator during this 537.16 period is considered acquiescence to a hearing before the board. 537.17 (b) If the teacher and the school board are unable to 537.18 mutually agree on an arbitrator, theschoolboardshallmust 537.19 request from the bureau of mediation services a list of five 537.20 persons to serve as an arbitrator. If the teacher and the 537.21 school board are unable to mutually agree on an arbitrator from 537.22 the list provided, the parties shall alternately strike names 537.23 from the list until the name of one arbitrator remains. The 537.24 person remaining after the striking procedureshallmust be the 537.25 arbitrator. If the parties are unable to agree on who shall 537.26 strike the first name, the question must be decided by a flip of 537.27 a coin. The teacher and theschoolboardshallmust share 537.28 equally the costs and fees of the arbitrator. 537.29 (c) The arbitrator shall determine, by a preponderance of 537.30 the evidence, whether the causes specified in subdivision 4, 537.31 clause (1), (2), (3), or (4), exist to support the proposed 537.32 discharge or demotion. A lesser penalty than discharge or 537.33 demotion may be imposed by the arbitrator only to the extent 537.34 that either party proposes such lesser penalty in the 537.35 proceeding. In making the determination, the arbitration 537.36 proceeding is governed by sections 572.11 to 572.17 and by the 538.1 collective bargaining agreement applicable to the teacher. 538.2 (d) An arbitration hearing conducted under this subdivision 538.3 is a meeting for preliminary consideration of allegations or 538.4 charges within the meaning of section 471.705, subdivision 1d, 538.5 clause (c), andshallmust be closed, unless the teacher 538.6 requests it to be open. 538.7 (e) The arbitrator's decision is final and binding on the 538.8 parties, subject to sections 572.18 to 572.26. 538.9 Sec. 53. Minnesota Statutes 1996, section 125.17, 538.10 subdivision 11, is amended to read: 538.11 Subd. 11. [SERVICES TERMINATED BY DISCONTINUANCE OR LACK 538.12 OF PUPILS; PREFERENCE GIVEN.] (a)AnyA teacher whose services 538.13 are terminated on account of discontinuance of position or lack 538.14 of pupilsshallmust receive first consideration for other 538.15 positions in the district for which that teacher is qualified. 538.16 In the event it becomes necessary to discontinue one or more 538.17 positions, in making such discontinuance, teachersshallmust be 538.18 discontinued in any department in the inverse order in which 538.19 they were employed. 538.20 (b) Notwithstanding the provisions of clause (a),noa 538.21 teachershall beis not entitled to exercise any seniority when 538.22 that exercise results in that teacher being retained by the 538.23 district in a field for which the teacher holds only a 538.24 provisional license, as defined by the board of teaching, unless 538.25 that exercise of seniority results in the termination of 538.26 services, on account of discontinuance of position or lack of 538.27 pupils, of another teacher who also holds a provisional license 538.28 in the same field. The provisions of this clauseshalldo not 538.29 apply to vocational education licenses. 538.30 (c) Notwithstanding the provisions of clause (a),noa 538.31 teachershallmust not be reinstated to a position in a field in 538.32 which the teacher holds only a provisional license, other than a 538.33 vocational education license, while another teacher who holds a 538.34 nonprovisional license in the same field is available for 538.35 reinstatement. 538.36 Sec. 54. Minnesota Statutes 1996, section 125.17, 539.1 subdivision 12, is amended to read: 539.2 Subd. 12. [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 539.3 EXPUNGEMENT.] All evaluations and files generated within 539.4 aschooldistrict relating to each individual teachershallmust 539.5 be available to each individual teacher upon the teacher's 539.6 written request. Effective January 1, 1976, all evaluations and 539.7 files, wherever generated, relating to each individual teacher 539.8shallmust be available to each individual teacher upon the 539.9 teacher's written request. The teachershall havehas the right 539.10 to reproduce any of the contents of the files at the teacher's 539.11 expense and to submit for inclusion in the file written 539.12 information in response to any material contained therein. 539.13 Aschooldistrict may destroy the files as provided by law 539.14 andshallmust expunge from the teacher's file any material 539.15 found to be false or substantially inaccurate through the 539.16 grievance procedure required pursuant to section 179A.20, 539.17 subdivision 4; provided,. The grievance procedure promulgated 539.18 by the director of the bureau of mediation services, pursuant to 539.19 section 179A.04, subdivision 3, clause (h),shall applyapplies 539.20 to those principals and supervisory employees not included in an 539.21 appropriate unit as defined in section 179A.03. Expungement 539.22 proceedingsshallmust be commenced within the time period 539.23 provided in the collective bargaining agreement for the 539.24 commencement of a grievance. If no time period is provided in 539.25 the bargaining agreement, the expungement proceedingsshallmust 539.26 commence within 15 days after the teacher has knowledge of the 539.27 inclusion in the teacher's file of the material the teacher 539.28 seeks to have expunged. 539.29 Sec. 55. Minnesota Statutes 1996, section 125.18, is 539.30 amended to read: 539.31 125.18 [SABBATICAL LEAVE FOR SCHOOL TEACHERS.] 539.32 Subdivision 1. [QUALIFICATIONS.] A teacher who holds a 539.33 license, according to this chapter, and a contract for 539.34 employment by a school district or other organization providing 539.35 public education may be granted a sabbatical leave by the board 539.36 employing the teacher under rules promulgated by the board. 540.1 Subd. 2. [RETURN TO POSITION.]AnyA teacher whomakes540.2applicationapplies for and accepts sabbatical leave shall agree 540.3 that, upon the conclusion of said sabbatical leave, the teacher 540.4 shall return to the teacher's position for a period determined 540.5 by the board before the leave is granted, or repay the district 540.6 the portion of salary received while on sabbatical leave. 540.7 Subd. 3. [RETAIN RIGHTS IN EMPLOYING DISTRICT.]AnyA 540.8 teacher who has been granted a sabbatical leaveshallmust 540.9 retain all rights in the employing district as though teaching 540.10 in that district. 540.11 Subd. 4. [DEFINITION.] The term sabbatical leave, as used 540.12 in this section,shall meanmeans compensated leaves of absence 540.13 granted for purposes of professional improvement or service. 540.14 Sec. 56. Minnesota Statutes 1996, section 125.181, is 540.15 amended to read: 540.16 125.181 [PROFESSIONAL PRACTICES; INTENT.] 540.17 The purpose of sections 125.181 to 125.185, is to develop 540.18 standards of ethical conduct for the guidance and improvement of 540.19 the teaching profession and to provide measures through which 540.20 the observance ofsuchstandards by the members of the 540.21 profession may be promoted and enforced. 540.22 Sec. 57. Minnesota Statutes 1996, section 125.183, 540.23 subdivision 1, is amended to read: 540.24 Subdivision 1. [BOARD OF TEACHING.] The board of teaching 540.25 consists of 11 members appointed by the governor. Membership 540.26 terms, compensation of members, removal of members, the filling 540.27 of membership vacancies, and fiscal year and reporting 540.28 requirementsshall beare as provided in sections 214.07 to 540.29 214.09. No member may be reappointed for more than one 540.30 additional term. 540.31 Sec. 58. Minnesota Statutes 1996, section 125.183, 540.32 subdivision 4, is amended to read: 540.33 Subd. 4. [VACANT POSITION.] The position of a member who 540.34 leaves Minnesota or whose employment status changes to a 540.35 category different from that from which appointedshall beis 540.36 deemed vacant. 541.1 Sec. 59. Minnesota Statutes 1996, section 125.183, 541.2 subdivision 5, is amended to read: 541.3 Subd. 5. [ADMINISTRATION, TERMS, COMPENSATION; REMOVAL; 541.4 VACANCIES.] The provision of staff, administrative services and 541.5 office space; the review and processing of complaints; the 541.6 setting of fees; the selection and duties of an executive 541.7 secretary to serve the board; and other provisions relating to 541.8 board operationsshall beare as provided in chapter 214. 541.9 Membership terms, compensation of members, removal of members, 541.10 the filling of membership vacancies, and fiscal year and 541.11 reporting requirementsshall beare as provided in sections 541.12 214.07 to 214.09. 541.13 Sec. 60. Minnesota Statutes 1996, section 125.184, is 541.14 amended to read: 541.15 125.184 [MEETINGS.] 541.16 Subdivision 1. [MEETINGS.] The board of teachingshall541.17 must meet regularly atsuchthe times and places as the board 541.18shall determinedetermines. Meetingsshallmust be called by 541.19 the chair or at the written request of any eight members. 541.20 Subd. 2. [EXECUTIVE SECRETARY.] The board of teaching 541.21shallmust have an executive secretary whoshall beis in the 541.22 unclassified civil service and whoshallis notbea member of 541.23 the board. 541.24 Sec. 61. Minnesota Statutes 1996, section 125.185, 541.25 subdivision 1, is amended to read: 541.26 Subdivision 1. [CODE OF ETHICS.] The board of teaching 541.27shallmust develop by rule a code of ethics covering standards 541.28 of professional teaching practices, including areas of ethical 541.29 conduct and professional performance and methods of enforcement. 541.30 Sec. 62. Minnesota Statutes 1996, section 125.185, 541.31 subdivision 2, is amended to read: 541.32 Subd. 2. [ADVISE MEMBERS OF PROFESSION.] The boardshall541.33 must act in an advisory capacity to members of the profession in 541.34 matters of interpretation of the code of ethics. 541.35 Sec. 63. Minnesota Statutes 1996, section 125.185, 541.36 subdivision 4, is amended to read: 542.1 Subd. 4. [LICENSE AND RULES.] (a) The boardshallmust 542.2 adopt rules to license public school teachers and interns 542.3 subject to chapter 14. 542.4 (b) The boardshallmust adopt rules requiring a person to 542.5 successfully complete a skills examination in reading, writing, 542.6 and mathematics as a requirement for initial teacher licensure. 542.7 Such rulesshallmust require college and universities offering 542.8 a board approved teacher preparation program to provide remedial 542.9 assistance to persons who did not achieve a qualifying score on 542.10 the skills examination, including those for whom English is a 542.11 second language. 542.12 (c) The boardshallmust adopt rules to approve teacher 542.13 preparation programs. 542.14 (d) The boardshallmust provide the leadership and shall 542.15 adopt rules for the redesign of teacher education programs to 542.16 implement a research based, results-oriented curriculum that 542.17 focuses on the skills teachers need in order to be effective. 542.18 The board shall implement new systems of teacher preparation 542.19 program evaluation to assure program effectiveness based on 542.20 proficiency of graduates in demonstrating attainment of program 542.21 outcomes. 542.22 (e) The boardshallmust adopt rules requiring successful 542.23 completion of an examination of general pedagogical knowledge 542.24 and examinations of licensure-specific teaching skills. The 542.25 rules shall be effective on the dates determined by the board, 542.26 but not later than July 1, 1999. 542.27 (f) The boardshallmust adopt rules requiring teacher 542.28 educators to work directly with elementary or secondary school 542.29 teachers in elementary or secondary schools to obtain periodic 542.30 exposure to the elementary or secondary teaching environment. 542.31 (g) The boardshallmust grant licenses to interns and to 542.32 candidates for initial licenses. 542.33 (h) The boardshallmust design and implement an assessment 542.34 system which requires a candidate for an initial license and 542.35 first continuing license to demonstrate the abilities necessary 542.36 to perform selected, representative teaching tasks at 543.1 appropriate levels. 543.2 (i) The boardshallmust receive recommendations from local 543.3 committees as established by the board for the renewal of 543.4 teaching licenses. 543.5 (j) The boardshallmust grant life licenses to those who 543.6 qualify according to requirements established by the board, and 543.7 suspend or revoke licenses pursuant to sections 125.09 and 543.8 214.10. The boardshallmust not establish any expiration date 543.9 for application for life licenses. 543.10 Sec. 64. Minnesota Statutes 1996, section 125.185, 543.11 subdivision 5, is amended to read: 543.12 Subd. 5. [REGISTER OF PERSONS LICENSED.] The executive 543.13 secretary of the board of teaching shall keep a record of the 543.14 proceedings of and a register of all persons licensed pursuant 543.15 to the provisions of this chapter. The registershallmust show 543.16 the name, address, license number and the renewalthereofof the 543.17 license. The boardshallmust on July 1, of each year or as 543.18 soon thereafter as is practicable, compile a list of such duly 543.19 licensed teachers and transmit a copythereofof the list to the 543.20 board. A copy of the registershallmust be available during 543.21 business hours at the office of the board to any interested 543.22 person. 543.23 Sec. 65. Minnesota Statutes 1996, section 125.185, 543.24 subdivision 7, is amended to read: 543.25 Subd. 7. [FRAUD; GROSS MISDEMEANOR.]AnyA person who 543.26shall in any manner claimclaims to be a licensed teacher 543.27 without a valid existing license issued by the board or any 543.28 person who employs fraud or deception in applying for or 543.29 securing a licenseshall beis guilty of a gross misdemeanor. 543.30 Sec. 66. Minnesota Statutes 1996, section 125.187, is 543.31 amended to read: 543.32 125.187 [VALIDITY OF CERTIFICATES OR LICENSES.] 543.33NoA rule adopted by the board of teachingshallmust not 543.34 affect the validity of certificates or licenses to teach in 543.35 effect on July 1, 1974, or the rights and privileges of the 543.36 holders thereof, except that any such certificate or license may 544.1 be suspended or revoked for any of the causes and by the 544.2 procedures specified by law. 544.3 Sec. 67. Minnesota Statutes 1996, section 125.188, 544.4 subdivision 1, is amended to read: 544.5 Subdivision 1. [REQUIREMENTS.] (a) A preparation program 544.6 that is an alternative to the post-secondary teacher preparation 544.7 program as a means to acquire an entrance license is 544.8 established. The program may be offered in any instructional 544.9 field. 544.10 (b) To participate in the alternative preparation program, 544.11 the candidate must: 544.12 (1) have a bachelor's degree; 544.13 (2) pass an examination of skills in reading, writing, and 544.14 mathematics as required by section 125.05; 544.15 (3) have been offered a job to teach in a school district, 544.16 group of districts, or an education district approved by the 544.17 board of teaching to offer an alternative preparation licensure 544.18 program; 544.19 (4)(i) have a college major in the subject area to be 544.20 taught; or 544.21 (ii) have five years of experience in a field related to 544.22 the subject to be taught; and 544.23 (5) document successful experiences working with children. 544.24 (c) An alternative preparation license is of one year 544.25 duration and is issued by the board of teaching to participants 544.26 on admission to the alternative preparation program. 544.27 (d) The board of teachingshallmust ensure that one of the 544.28 purposes of this program is to enhance the school 544.29 desegregation/integration policies adopted by the state. 544.30 Sec. 68. Minnesota Statutes 1996, section 125.188, 544.31 subdivision 3, is amended to read: 544.32 Subd. 3. [PROGRAM APPROVAL.] (a) The board of teaching 544.33shallmust approve alternative preparation programs based on 544.34 criteria adopted by the board. 544.35 (b) An alternative preparation program at a school 544.36 district, group of schools, or an education district must be 545.1 affiliated with a post-secondary institution that has a teacher 545.2 preparation program. 545.3 Sec. 69. Minnesota Statutes 1996, section 125.188, 545.4 subdivision 5, is amended to read: 545.5 Subd. 5. [STANDARD ENTRANCE LICENSE.] The board of 545.6 teachingshallmust issue a standard entrance license to an 545.7 alternative preparation licensee who has successfully completed 545.8 the school year in the alternative preparation program and who 545.9 has received a positive recommendation from the licensee's 545.10 mentorship team. 545.11 Sec. 70. Minnesota Statutes 1996, section 125.1885, 545.12 subdivision 5, is amended to read: 545.13 Subd. 5. [STANDARD ENTRANCE LICENSE.] The state board of 545.14 educationshallmust issue a standard entrance license to an 545.15 alternative preparation licensee who has successfully completed 545.16 the school year in the alternative preparation program and who 545.17 has received a positive recommendation from the licensee's 545.18 mentorship team. 545.19 Sec. 71. Minnesota Statutes 1996, section 125.189, is 545.20 amended to read: 545.21 125.189 [TEACHERS OF DEAF AND HARD OF HEARING STUDENTS; 545.22 LICENSURE REQUIREMENTS.] 545.23 The board of teachingwillmust review and determine 545.24 appropriate licensure requirements for a candidate for a license 545.25 or an applicant for a continuing license to teach deaf and hard 545.26 of hearing students in prekindergarten through grade 12. In 545.27 addition to other requirements, a candidate must demonstrate the 545.28 minimum level of proficiency in American sign language as 545.29 determined by the board. 545.30 Sec. 72. Minnesota Statutes 1996, section 125.1895, 545.31 subdivision 4, is amended to read: 545.32 Subd. 4. [REIMBURSEMENT.] For purposes of revenue under 545.33 sections 124.321 and 124.322, the department of children, 545.34 families, and learningshallmust only reimburse school 545.35 districts for the services of those interpreters/transliterators 545.36 who satisfy the standards of competency under this section. 546.1 Sec. 73. Minnesota Statutes 1996, section 125.211, 546.2 subdivision 2, is amended to read: 546.3 Subd. 2. [RESPONSIBILITY.] By July 1, 1989, the board of 546.4 teachingshallmust begin to evaluate the effectiveness of 546.5 prebaccalaureate, postbaccalaureate, and other alternative 546.6 program structures for preparing candidates for entrance into 546.7 the teaching profession. The evaluation shall be conducted by 546.8 independent research centers or evaluators who are not 546.9 associated with a Minnesota teacher education institution and 546.10 shall be longitudinal in nature.By July 1, 1990, the board of546.11teaching shall make a preliminary report on the effectiveness of546.12alternative program structures to the education and finance546.13committees of the legislature.546.14 Sec. 74. Minnesota Statutes 1996, section 125.230, 546.15 subdivision 4, is amended to read: 546.16 Subd. 4. [EMPLOYMENT CONDITIONS.] A school district 546.17shallmust pay a teaching resident a salary equal to 75 percent 546.18 of the salary of a first-year teacher with a bachelor's degree 546.19 in the district. The resident shall be a member of the local 546.20 bargaining unit and shall be covered under the terms of the 546.21 contract, except for salary and benefits, unless otherwise 546.22 provided in this subdivision. The school districtshallmust 546.23 provide health insurance coverage for the resident if the 546.24 district provides it for teachers, and may provide other 546.25 benefits upon negotiated agreement. 546.26 Sec. 75. Minnesota Statutes 1996, section 125.230, 546.27 subdivision 6, is amended to read: 546.28 Subd. 6. [LEARNING AND DEVELOPMENT REVENUE ELIGIBILITY.] A 546.29 school district with an approved teaching residency program may 546.30 use learning and development revenue for each teaching resident 546.31 in kindergarten through grade six. A district also may use the 546.32 revenue for a paraprofessional who is a person of color enrolled 546.33 in an approved teacher preparation program. A school 546.34 districtshallmust not use a teaching resident to replace an 546.35 existing teaching position unless: 546.36 (1) there is no teacher available who is properly licensed 547.1 to fill the vacancy, who has been placed on unrequested leave of 547.2 absence in the district, and who wishes to be reinstated; and 547.3 (2) the district's collective bargaining agreement includes 547.4 a memorandum of understanding that permits teaching residents to 547.5 fill an existing teaching position. 547.6 Sec. 76. Minnesota Statutes 1996, section 125.230, 547.7 subdivision 7, is amended to read: 547.8 Subd. 7. [RECOMMENDATION FOR LICENSURE REQUIREMENTS.] (a) 547.9 The board of teachingshallmust develop for teachers of 547.10 students in prekindergarten through grade 12, model teaching 547.11 residency outcomes and assessments, and mentoring programs. 547.12 (b) The board of teachingshallmust report to the 547.13 education committees of the legislature by February 15, 1994, on 547.14 developing a residency program as part of teacher licensure. 547.15 The report shall at least discuss: 547.16 (1) whether a teacher residency program should be a 547.17 prerequisite to obtaining an initial teaching license or a 547.18 continuing teacher license; 547.19 (2) the number of teacher residency positions available 547.20 statewide by school district; 547.21 (3) how a teacher residency program and a mentorship 547.22 program for school teachers can be structured; 547.23 (4) whether additional state funding for teacher residency 547.24 programs is required; 547.25 (5) the interrelationship between existing teacher 547.26 preparation programs and a teacher residency program; 547.27 (6) issues related to implementing a teacher residency 547.28 program, including a timeline for implementing the program; and 547.29 (7) how a teacher residency program may impact upon a 547.30 teacher licensed in another state who seeks a teaching position 547.31 in Minnesota. 547.32 Sec. 77. Minnesota Statutes 1996, section 125.231, 547.33 subdivision 3, is amended to read: 547.34 Subd. 3. [APPLICATIONS.] The board of teachingshallmust 547.35 make application forms available to sites interested in 547.36 developing or expanding a mentorship program. A school 548.1 district, a group of school districts, or a coalition of 548.2 districts, teachers and teacher education institutions may apply 548.3 for a teacher mentorship program grant. The board of teaching, 548.4 in consultation with the teacher mentoring task force,shall548.5 must approve or disapprove the applications. To the extent 548.6 possible, the approved applications must reflect effective 548.7 mentoring components, include a variety of coalitions and be 548.8 geographically distributed throughout the state. The board of 548.9 teachingshallmust encourage the selected sites to consider the 548.10 use of its assessment procedures. 548.11 Sec. 78. Minnesota Statutes 1996, section 125.53, is 548.12 amended to read: 548.13 125.53 [DESIGNATED STATE OFFICIAL.] 548.14 For the purposes of the agreement set forth in section 548.15 125.52, the designated state official for this stateshall beis 548.16 the commissioner of children, families, and learning. 548.17 Sec. 79. Minnesota Statutes 1996, section 125.54, is 548.18 amended to read: 548.19 125.54 [RECORD OF CONTRACTS.] 548.20 Two copies of all contracts made on behalf of this state 548.21 pursuant to the agreement set forth in section 125.52shallmust 548.22 be kept on file in the office of the commissioner of children, 548.23 families, and learning. 548.24 Sec. 80. Minnesota Statutes 1996, section 125.60, 548.25 subdivision 2, is amended to read: 548.26 Subd. 2. [LEAVE OF ABSENCE.] The board of any district may 548.27 grant an extended leave of absence without salary to any full- 548.28 or part-time elementary or secondary teacher who has been 548.29 employed by the district for at least five years and has at 548.30 least ten years of allowable service, as defined in section 548.31 354.05, subdivision 13, or the bylaws of the appropriate 548.32 retirement association or ten years of full-time teaching 548.33 service in Minnesota public elementary and secondary schools. 548.34 The maximum duration of an extended leave of absence pursuant to 548.35 this sectionshallmust be determined by mutual agreement of the 548.36 board and the teacher at the time the leave is granted and shall 549.1 be at least three but no more than five years. An extended 549.2 leave of absence pursuant to this section shall be taken by 549.3 mutual consent of the board and the teacher. If the school 549.4 board denies a teacher's request, itshallmust provide 549.5 reasonable justification for the denial. 549.6 Sec. 81. Minnesota Statutes 1996, section 125.60, 549.7 subdivision 3, is amended to read: 549.8 Subd. 3. [REINSTATEMENT.] Except as provided in 549.9 subdivisions 6a and 6b, a teacher on an extended leave of 549.10 absence pursuant to this section shall have the right to be 549.11 reinstated to a position for which the teacher is licensed at 549.12 the beginning of any school year which immediately follows a 549.13 year of the extended leave of absence, unless the teacher fails 549.14 to give the required notice of intention to return or is 549.15 discharged or placed on unrequested leave of absence or the 549.16 contract is terminated pursuant to section 125.12 or 125.17 549.17 while the teacher is on the extended leave. The boardshallis 549.18 notbeobligated to reinstate any teacher who is on an extended 549.19 leave of absence pursuant to this section, unless the teacher 549.20advisesadvised the board of the intention to return before 549.21 February 1 in the school year preceding the school year in which 549.22 the teacher wishes to return or by February 1 in the calendar 549.23 year in which the leave is scheduled to terminate. 549.24 Sec. 82. Minnesota Statutes 1996, section 125.60, 549.25 subdivision 4, is amended to read: 549.26 Subd. 4. [SENIORITY AND CONTINUING CONTRACT RIGHTS.] Any 549.27 teacher who is reinstated to a teaching position after an 549.28 extended leave of absence pursuant to this section shall retain 549.29 seniority and continuing contract rights in the employing 549.30 district as though the teacher had been teaching in the district 549.31 during the period of the extended leave; provided, however,. 549.32 This subdivision shall not be construed to require a board to 549.33 reinstate a teacher to any particular position or to include the 549.34 years spent on the extended leave of absence in the 549.35 determination of a teacher's salary upon return to teaching in 549.36 this district. 550.1 Sec. 83. Minnesota Statutes 1996, section 125.60, 550.2 subdivision 6a, is amended to read: 550.3 Subd. 6a. [EMPLOYMENT IN ANOTHER DISTRICT.]NoA school 550.4 board shall not be obligated to reinstate a teacher who takes a 550.5 full-time or part-time position as a teacher in another 550.6 Minnesota school district while on an extended leave of absence 550.7 pursuant to this section. This subdivision shall not apply to a 550.8 teacher who is employed as a substitute teacher. 550.9 Sec. 84. Minnesota Statutes 1996, section 125.60, 550.10 subdivision 8, is amended to read: 550.11 Subd. 8. [BENEFITS.] A teacher on an extended leave of 550.12 absence shall receive all of the health, accident, medical, 550.13 surgical and hospitalization insurance or benefits, for both the 550.14 teacher and the teacher's dependents, for which the teacher 550.15 would otherwise be eligible if not on an extended leave,. A 550.16 teacher shall receive the coverage if such coverage is available 550.17 from the school district's insurer, if the teacher requests the 550.18 coverage, and if the teacher either (a) reimburses the district 550.19 for the full amount of the premium necessary to maintain the 550.20 coverage within one month following the district's payment of 550.21 the premium, or (b) if the district is wholly or partially 550.22 self-insured, pays the district, according to a schedule agreed 550.23 upon by the teacher and the school board, an amount determined 550.24 by the school board to be the amount that would be charged for 550.25 the coverage chosen by the teacher if the school board purchased 550.26 all health, accident, medical, surgical and hospitalization 550.27 coverage for its teachers from an insurer. 550.28 Sec. 85. Minnesota Statutes 1996, section 125.611, 550.29 subdivision 1, is amended to read: 550.30 Subdivision 1. [CRITERIA.] For purposes of this section, 550.31 "teacher" means a teacher as defined in section 125.03, 550.32 subdivision 1, who: 550.33 (a) is employed in a public elementary or secondary school 550.34 in the state and 550.35 (b) either 550.36 (1)(i) hasnot less thanat least 15 total years of 551.1 full-time teaching service in elementary, secondary, and 551.2 technical colleges, or at least 15 years of allowable service as 551.3 defined in sections 354.05, subdivision 13; 354.092; 354.093; 551.4 354.094; 354.53; 354.66; 354A.011, subdivision 4; 354A.091; 551.5 354A.092; 354A.093; 354A.094; or Laws 1982, chapter 578, article 551.6 II, section 1 and 551.7 (ii) has or will have attained the age of 55 years but less 551.8 than 65 years as of the June 30 in the school year during which 551.9 an application for an early retirement incentive is made, or 551.10 (2) hasnot less thanat least 30 total years of full-time 551.11 teaching service in elementary, secondary, and technical 551.12 colleges, or at least 30 years of allowable service as defined 551.13 in sections 354.05, subdivision 13; 354.092; 354.093; 354.094; 551.14 354.53; 354.66; 354A.011, subdivision 4; 354A.091; 354A.092; 551.15 354A.093; 354A.094; or Laws 1982, chapter 578, article II, 551.16 section 1. 551.17 Sec. 86. Minnesota Statutes 1996, section 125.611, 551.18 subdivision 13, is amended to read: 551.19 Subd. 13. [APPLICATIONS.] A teacher meeting the 551.20 requirements of subdivision 1 may apply to the school board of 551.21 the employing district for a contract for termination of 551.22 services, withdrawal from active teaching service, and payment 551.23 of an early retirement incentive. This applicationshallmust 551.24 be submitted on or before February 1 of the school year at the 551.25 end of which the teacher wishes to retire. A school boardshall551.26 must approve or deny the application within 30 days after it is 551.27 received by the board. The amount of the early retirement 551.28 incentive shall be agreed upon between the teacher and the 551.29 school board. The early retirement incentive shall be paid by 551.30 the employing district at the time and in the manner mutually 551.31 agreed upon by a teacher and the board. 551.32 Sec. 87. Minnesota Statutes 1996, section 125.62, 551.33 subdivision 2, is amended to read: 551.34 Subd. 2. [APPLICATION.] To obtain a joint grant, a joint 551.35 applicationshallmust be submitted to the state board of 551.36 education. The application must be developed with the 552.1 participation of the parent advisory committee, established 552.2 according to section 126.51, and the Indian advisory committee 552.3 at the post-secondary institution. The joint application shall 552.4 set forth: 552.5 (1) the in-kind, coordination, and mentorship services to 552.6 be provided by the post-secondary institution; and 552.7 (2) the coordination and mentorship services to be provided 552.8 by the school district. 552.9 Sec. 88. Minnesota Statutes 1996, section 125.62, 552.10 subdivision 3, is amended to read: 552.11 Subd. 3. [REVIEW AND COMMENT.] The state boardshallmust 552.12 submit the joint application to the Minnesota Indian scholarship 552.13 committee for review and comment. 552.14 Sec. 89. Minnesota Statutes 1996, section 125.62, 552.15 subdivision 7, is amended to read: 552.16 Subd. 7. [LOAN FORGIVENESS.] The loan may be forgiven if 552.17 the recipient is employed as a teacher, as defined in section 552.18 125.12 or 125.17, in an eligible school or program in 552.19 Minnesota. One-fourth of the principal of the outstanding loan 552.20 amount shall be forgiven for each year of eligible employment, 552.21 or a pro rata amount for eligible employment during part of a 552.22 school year, part-time employment as a substitute teacher, or 552.23 other eligible part-time teaching. Loans for $2,500 or less may 552.24 be forgiven at the rate of up to $1,250 per year. The following 552.25 schools and programs are eligible for the purposes of loan 552.26 forgiveness: 552.27 (1) a school or program operated by a school district; 552.28 (2) a tribal contract school eligible to receive aid 552.29 according to section 124.86; 552.30 (3) a head start program; 552.31 (4) an early childhood family education program; 552.32 (5) a program providing educational services to children 552.33 who have not entered kindergarten; or 552.34 (6) a program providing educational enrichment services to 552.35 American Indian students in grades kindergarten through 12. 552.36 If a person has an outstanding loan obtained through this 553.1 program, the duty to make payments of principal and interest may 553.2 be deferred during any time period the person is enrolled at 553.3 least one-half time in an advanced degree program in a field 553.4 that leads to employment by a school district. To defer loan 553.5 obligations, the person shall provide written notification to 553.6 the state board of education and the recipients of the joint 553.7 grant that originally authorized the loan. Upon approval by the 553.8 state board and the joint grant recipients, payments shall be 553.9 deferred. 553.10 The higher education services office shall approve the loan 553.11 forgiveness program, loan deferral, and procedures to administer 553.12 the programshall be approved by the higher education services553.13office. 553.14 Sec. 90. Minnesota Statutes 1996, section 125.623, 553.15 subdivision 3, is amended to read: 553.16 Subd. 3. [PROGRAM REQUIREMENTS.] (a) A grant recipient 553.17shallmust recruit persons of color to be teachers in 553.18 elementary, secondary, early childhood or parent education, and 553.19 provide support in linking program participants with jobs in the 553.20 recipient's school district. 553.21 (b) A grant recipientshallmust establish an advisory 553.22 council composed of representatives of communities of color. 553.23 (c) A grant recipient, with the assistance of the advisory 553.24 council,shallmust recruit high school students and other 553.25 persons, including educational paraprofessionals, support them 553.26 through the higher education application and admission process, 553.27 advise them while enrolled and link them with support resources 553.28 in the college or university and the community. 553.29 (d) A grant recipientshallmust award stipends to students 553.30 of color enrolled in an approved licensure program to help cover 553.31 the costs of tuition, student fees, supplies, and books. 553.32 Stipend awards must be based on a student's financial need and 553.33 students must apply for any additional financial aid they are 553.34 eligible for to supplement this program. No more than ten 553.35 percent of the grant may be used for costs of administering the 553.36 program. Students must agree to teach in the grantee school 554.1 district for at least two years after licensure. If the 554.2 district has no licensed positions open, the student may teach 554.3 in another district in Minnesota. 554.4 (e) The commissioner of children, families, and learning 554.5 shall consider the following criteria in awarding grants: 554.6 (1) whether the program is likely to increase the 554.7 recruitment and retention of students of color in teaching; 554.8 (2) whether grant recipients will recruit paraprofessionals 554.9 from the district to work in its schools; and 554.10 (3) whether grant recipients will establish or have a 554.11 mentoring program for students of color. 554.12 Sec. 91. Minnesota Statutes 1996, section 125.80, is 554.13 amended to read: 554.14 125.80 [TEACHER LUNCH PERIOD.] 554.15EachA teachershallmust be provided with a duty-free 554.16 lunch period, scheduled according to school board policy or 554.17 negotiated agreement. 554.18 Sec. 92. Minnesota Statutes 1996, section 126.36, 554.19 subdivision 1, is amended to read: 554.20 Subdivision 1. [BILINGUAL AND ENGLISH AS A SECOND LANGUAGE 554.21 LICENSES.] The board of teaching, hereinafter the board,shall554.22 must grant teaching licenses in bilingual education and English 554.23 as a second language to persons who present satisfactory 554.24 evidence that they: 554.25 (a) Possess competence and communicative skills in English 554.26 and in another language; 554.27 (b) Possess a bachelor's degree or other academic degree 554.28 approved by the board, and meet such requirements as to course 554.29 of study and training as the board may prescribe. 554.30 Sec. 93. Minnesota Statutes 1996, section 126.36, 554.31 subdivision 5, is amended to read: 554.32 Subd. 5. [PERSONS ELIGIBLE FOR EMPLOYMENT.] Any person 554.33 licensed under this section shall be eligible for employment by 554.34 a school board as a teacher in a bilingual education or English 554.35 as a second language program in which the language for which the 554.36 person is licensed is taught or used as a medium of 555.1 instruction. Aschoolboard may prescribe only those additional 555.2 qualifications for teachers licensed under this section as are 555.3 approved by the board of teaching. 555.4 Sec. 94. Minnesota Statutes 1996, section 126.36, 555.5 subdivision 7, is amended to read: 555.6 Subd. 7. [AFFIRMATIVE EFFORTS IN HIRING.] In hiring for 555.7 all positions in bilingual education programsschool, 555.8 districtsshallmust give preference to and make affirmative 555.9 efforts to seek, recruit, and employ persons who are (a) native 555.10 speakers of the language which is the medium of instruction in 555.11 the bilingual education program, and (b) who share the culture 555.12 of the limited English speaking children who are enrolled in the 555.13 program. The district shall provide procedures for the 555.14 involvement of the parent advisory committees in designing the 555.15 procedures for the recruitment, screening and selection of 555.16 applicants, provided that nothing herein shall. This section 555.17 must not be construed to limit the school board's authority to 555.18 hire and discharge personnel. 555.19 Sec. 95. Minnesota Statutes 1996, section 126.70, 555.20 subdivision 1, is amended to read: 555.21 Subdivision 1. [STAFF DEVELOPMENT COMMITTEE.] A school 555.22 boardshallmust use the revenue authorized in section 124A.29 555.23 for in-service education for programs under section 126.77, 555.24 subdivision 2, or for staff development plans under this 555.25 section. The board must establish a staff development committee 555.26 to develop the plan, assist site decision-making teams in 555.27 developing a site plan consistent with the goals of the plan, 555.28 and evaluate staff development efforts at the site level. A 555.29 majority of the advisory committee must be teachers representing 555.30 various grade levels, subject areas, and special education. The 555.31 advisory committee must also include nonteaching staff, parents, 555.32 and administrators. Districtsshallmust report staff 555.33 development results and expenditures to the commissioner in the 555.34 form and manner determined by the commissioner. The expenditure 555.35 reportshallmust include expenditures by theschoolboard for 555.36 district level activities and expenditures made by the staff. 556.1 The reportshallmust provide a breakdown of expenditures for 556.2 (1) curriculum development and programs, (2) in-service 556.3 education, workshops, and conferences, and (3) the cost of 556.4 teachers or substitute teachers for staff development purposes. 556.5 Within each of these categories, the reportshallmust also 556.6 indicate whether the expenditures were incurred at the district 556.7 level or the school site level, and whether the school site 556.8 expenditures were made possible by the grants to school sites 556.9 that demonstrate exemplary use of allocated staff development 556.10 revenue. These expenditures are to be reported using the UFARS 556.11 system. The commissioner shall report the staff development 556.12 expenditure data to the education committees of the legislature 556.13 by February 15 each year. 556.14 Sec. 96. Minnesota Statutes 1996, section 126.70, 556.15 subdivision 2a, is amended to read: 556.16 Subd. 2a. [STAFF DEVELOPMENT OUTCOMES.] The staff 556.17 development committeeshallmust adopt a staff development plan 556.18 for improving student achievement of education outcomes. The 556.19 plan must be consistent with education outcomes that the school 556.20 board determines. The planshallmust include ongoing staff 556.21 development activities that contribute toward continuous 556.22 improvement in achievement of the following goals: 556.23 (1) improve student achievement of state and local 556.24 education standards in all areas of the curriculum; 556.25 (2) effectively meet the needs of a diverse student 556.26 population, including at-risk children, children with 556.27 disabilities, and gifted children, within the regular classroom 556.28 and other settings; 556.29 (3) provide an inclusive curriculum for a racially, 556.30 ethnically, and culturally diverse student population that is 556.31 consistent with the state education diversity rule and the 556.32 district's education diversity plan; 556.33 (4) improve staff ability to collaborate and consult with 556.34 one another and to resolve conflicts; 556.35 (5) effectively teach and model violence prevention policy 556.36 and curriculum that address issues of harassment and teach 557.1 nonviolent alternatives for conflict resolution; and 557.2 (6) provide teachers and other members of site-based 557.3 management teams with appropriate management and financial 557.4 management skills. 557.5 Sec. 97. Minnesota Statutes 1997 Supplement, section 557.6 126.72, subdivision 2, is amended to read: 557.7 Subd. 2. [PURPOSE.] Theschoolboardshallmust determine 557.8 the needs of its classroom teachers and the need for changes in 557.9 its curriculum. In determining these needs, the school board 557.10shallmust obtain recommendations from classroom teachers, staff 557.11 responsible for curriculum, and the curriculum advisory 557.12 committee. It shall consider assessment results, other test 557.13 results, the need for mentor teachers, and the district 557.14 improvement plan portion of the report adopted according to 557.15 section 123.972, subdivision53. Contracts executed under this 557.16 section shall relate directly to the identified needs. 557.17 Sec. 98. Minnesota Statutes 1996, section 126.72, 557.18 subdivision 3, is amended to read: 557.19 Subd. 3. [SELECTION COMMITTEE.] A committee of six members 557.20 appointed by theschoolboard shall recommend teachers to 557.21 receive contracts. Three members of the committee shall be 557.22 classroom teachers. Three members shall be administrators, 557.23 parents, members of the school board, or members of the 557.24 community. The committee shall consider only classroom teachers 557.25 who have background, knowledge, or expertise needed to perform 557.26 duties in the areas of need identified by theschoolboard. 557.27 Years of service in the districtshallmust not be a factor for 557.28 consideration by the committee.NoA teacher shall not have a 557.29 right to a contract under this section based on seniority or 557.30 order of employment in the district. The committee shall 557.31 recommend to the school board names of individual teachers. The 557.32 number of individual teachers recommended shall be approximately 557.33 the number designated by theschoolboard to meet the identified 557.34 needs. Theschoolboard may award contracts to any of the 557.35 recommended teachers but not to any others. The board may 557.36 request the committee to recommend additional names of teachers. 558.1 Sec. 99. Minnesota Statutes 1996, section 126.72, 558.2 subdivision 6, is amended to read: 558.3 Subd. 6. [REPORT.] Each district awarding contracts under 558.4 this section is encouraged to submit a report to the 558.5 commissionerof children, families, and learning. The report 558.6 shall indicate the number of contracts awarded, whether duties 558.7 are to be performed before, during, or after the school day or 558.8 during the summer, the total cost of all contracts, and a 558.9 general description of the duties. The statement shall also 558.10 describe how the recommendations required by subdivision 2 were 558.11 obtained. Any problems associated with implementing this 558.12 section may be included. 558.13 Sec. 100. [REPEALER.] 558.14 Minnesota Statutes 1996, section 125.10, is repealed. 558.15 Sec. 101. [INSTRUCTION TO REVISOR.] 558.16 The revisor of statutes shall renumber each section of 558.17 Minnesota Statutes listed in column A with the number listed in 558.18 column B. The revisor shall also make necessary cross-reference 558.19 changes consistent with the renumbering. 558.20 Column A Column B 558.21 125.01 125A.01 558.22 125.02 125A.02 558.23 125.52 125A.05 558.24 125.53 125A.06 558.25 125.54 125A.07 558.26 125.181 125A.10 558.27 125.182 125A.11 558.28 125.183, subd. 1 125A.12, subd. 1 558.29 subd. 3 subd. 2 558.30 subd. 4 subd. 3 558.31 subd. 5 subd. 4 558.32 subd. 6 subd. 5 558.33 125.184 125A.13 558.34 125.185, subd. 1 125A.14, subd. 1 558.35 subd. 2 subd. 2 558.36 subd. 3 subd. 3 559.1 subd. 4 subd. 4 559.2 subd. 4b subd. 5 559.3 subd. 5 subd. 6 559.4 subd. 6 subd. 7 559.5 subd. 7 subd. 8 559.6 subd. 9 subd. 9 559.7 subd. 10 subd. 10 559.8 125.03, subd. 1 125A.19, subd. 1 559.9 subd. 4 subd. 2 559.10 125.04 125A.20 559.11 125.187 125A.21 559.12 125.05, subd. 1 125A.22, subd. 1 559.13 subd. 1a subd. 2 559.14 subd. 1c subd. 3 559.15 subd. 2 subd. 4 559.16 subd. 3 subd. 5 559.17 subd. 4 subd. 6 559.18 subd. 6 subd. 7 559.19 subd. 8 subd. 8 559.20 subd. 9 subd. 9 559.21 126.36, subd. 1 125A.23, subd. 1 559.22 subd. 2 subd. 2 559.23 subd. 3 subd. 3 559.24 subd. 4 subd. 4 559.25 subd. 5 subd. 5 559.26 subd. 7 subd. 6 559.27 125.06 125A.24 559.28 125.188 125A.25 559.29 125.1885 125A.26 559.30 125.189 125A.27 559.31 121.11, subd. 12 125A.30 559.32 121.611 125A.31 559.33 125.032 125A.32 559.34 125.031 125A.33 559.35 125.1895 125A.34 559.36 125.03, subd. 6 125A.35 560.1 125.191 125A.36 560.2 125.08 125A.40 560.3 125.11 125A.41 560.4 125.09, subd. 1 125A.42, subd. 1 560.5 subd. 4 subd. 2 560.6 subd. 5 subd. 3 560.7 125.12, subd. 1 125A.45, subd. 1 560.8 subd. 1a subd. 2 560.9 subd. 2 subd. 3 560.10 subd. 2a subd. 4 560.11 subd. 3 subd. 5 560.12 subd. 3b subd. 6 560.13 subd. 4 subd. 7 560.14 subd. 4b subd. 8 560.15 subd. 6 subd. 9 560.16 subd. 6a subd. 10 560.17 subd. 6b subd. 11 560.18 subd. 7 subd. 12 560.19 subd. 8 subd. 13 560.20 subd. 9 subd. 14 560.21 subd. 9a subd. 15 560.22 subd. 10 subd. 16 560.23 subd. 11 subd. 17 560.24 subd. 13 subd. 18 560.25 subd. 14 subd. 19 560.26 125.17, subd. 1 125A.46, subd. 1 560.27 subd. 2 subd. 2 560.28 subd. 2b subd. 3 560.29 subd. 3 subd. 4 560.30 subd. 3b subd. 5 560.31 subd. 4 subd. 6 560.32 subd. 5 subd. 7 560.33 subd. 6 subd. 8 560.34 subd. 7 subd. 9 560.35 subd. 8 subd. 10 560.36 subd. 9 subd. 11 561.1 subd. 10 subd. 12 561.2 subd. 10a subd. 13 561.3 subd. 11 subd. 14 561.4 subd. 12 subd. 15 561.5 125.121 125A.47 561.6 126.72 125A.48 561.7 123.35, subd. 5 125A.49 561.8 125.14 125A.50 561.9 125.13 125A.51 561.10 125.135 125A.52 561.11 125.138 125A.53 561.12 125.1385 125A.54 561.13 125.15 125A.57 561.14 125.16 125A.58 561.15 125.706 125A.59 561.16 125.80 125A.60 561.17 125.60, subd. 1 125A.62, subd. 1 561.18 subd. 2 subd. 2 561.19 subd. 3 subd. 3 561.20 subd. 4 subd. 4 561.21 subd. 5 subd. 5 561.22 subd. 6 subd. 6 561.23 subd. 6a subd. 7 561.24 subd. 6b subd. 8 561.25 subd. 8 subd. 9 561.26 125.18 125A.63 561.27 125.615 125A.64 561.28 125.611, subd. 1 125A.65, subd. 1 561.29 subd. 2 subd. 2 561.30 subd. 11 subd. 3 561.31 subd. 12 subd. 4 561.32 subd. 13 subd. 5 561.33 124.278 125A.67 561.34 125.211 125A.70 561.35 125.230 125A.72 561.36 123.35, subd. 13 125A.73 562.1 125.231, subd. 1 125A.75, subd. 1 562.2 subd. 3 subd. 2 562.3 subd. 4 subd. 3 562.4 subd. 5 subd. 4 562.5 subd. 7 subd. 5 562.6 124C.41 125A.77 562.7 126.70, subd. 1 125A.79, subd. 1 562.8 subd. 2 subd. 2 562.9 subd. 2a subd. 3 562.10 124A.29 125A.80 562.11 124A.292 125A.81 562.12 125.62 125A.83 562.13 125.623 125A.84 562.14 125.241 125A.87 562.15 ARTICLE 9 562.16 CHAPTER 125B 562.17 STUDENTS AND SCHOOL ENVIRONMENT 562.18 Section 1. Minnesota Statutes 1996, section 121.207, 562.19 subdivision 2, is amended to read: 562.20 Subd. 2. [REPORTS; CONTENT.]On or beforeBy January 1, 562.21 1994, the commissionerof children, families, and learning, in 562.22 consultation with the criminal and juvenile information policy 562.23 group, shall develop a standardized form to be used by schools 562.24 to report incidents involving the use or possession of a 562.25 dangerous weapon in school zones. The form shall include the 562.26 following information: 562.27 (1) a description of each incident, including a description 562.28 of the dangerous weapon involved in the incident; 562.29 (2) where, at what time, and under what circumstances the 562.30 incident occurred; 562.31 (3) information about the offender, other than the 562.32 offender's name, including the offender's age; whether the 562.33 offender was a student and, if so, where the offender attended 562.34 school; and whether the offender was under school expulsion or 562.35 suspension at the time of the incident; 562.36 (4) information about the victim other than the victim's 563.1 name, if any, including the victim's age; whether the victim was 563.2 a student and, if so, where the victim attended school; and if 563.3 the victim was not a student, whether the victim was employed at 563.4 the school; 563.5 (5) the cost of the incident to the school and to the 563.6 victim; and 563.7 (6) the action taken by the school administration to 563.8 respond to the incident. 563.9 The commissioner also shall develop an alternative 563.10 reporting format that allows school districts to provide 563.11 aggregate data, with an option to use computer technology to 563.12 report the data. 563.13 Sec. 2. Minnesota Statutes 1996, section 121.207, 563.14 subdivision 3, is amended to read: 563.15 Subd. 3. [REPORTS; FILING REQUIREMENTS.] By February 1 and 563.16 July 1 of each year, each school shall report incidents 563.17 involving the use or possession of a dangerous weapon in school 563.18 zones to the commissionerof children, families, and learning. 563.19 The reportsshallmust be made on the standardized forms or 563.20 using the alternative format developed by the commissioner under 563.21 subdivision 2. The commissioner shall compile the information 563.22 it receives from the schools and report it annually to the 563.23 commissioner of public safety, the criminal and juvenile 563.24 information policy group, and the legislature. 563.25 Sec. 3. Minnesota Statutes 1996, section 126.05, is 563.26 amended to read: 563.27 126.05 [TEACHER TRAINING, EFFECTS OF DRUGS AND ALCOHOL.] 563.28 All educational institutions providing teacher education 563.29shallmust offer a program in the personal use and misuse of and 563.30 dependency on tobacco, alcohol, drugs and other chemicals, and. 563.31 Every student attendingsuch institutioneducational 563.32 institutions in preparation for teaching service shall be 563.33 required to take and to satisfactorily complete such a program. 563.34 Every student who graduates after June,1974, shall complete 563.35 such a course. 563.36 Sec. 4. Minnesota Statutes 1996, section 126.14, is 564.1 amended to read: 564.2 126.14 [UNITED STATES FLAG.] 564.3 Subdivision 1. [DISPLAYED BY SCHOOLS.]There shall be564.4displayed atEvery public school in Minnesotawhen in session564.5 must display an appropriate United States flag when in session. 564.6Such displayThe flag shall be displayed upon the school grounds 564.7 or outside the school building,uponon a proper staff, on every 564.8 legal holiday occurring during the school term and at such other 564.9 times as therespective boardsboard ofsuch districtsthe 564.10 district may directand. The flag must be displayed within the 564.11 principal rooms ofsuchthe school building at all other times 564.12 whilethe sameschool is in session. 564.13 Subd. 2. [SCHOOL BOARDS TO PROVIDE FLAGS AND STAFFS.]It564.14shall be the duty of eachThe boardtomust providesuchthe 564.15 flag for each of the school buildingsofin theirrespective564.16 districts, together with a suitable stafffor theto display 564.17thereofthe flag outside ofsuchthe school building and proper 564.18 arrangementfor theto displaythereof within suchthe flag in 564.19 the building, and a suitable receptacle for the safekeeping 564.20 ofsuchthe flag when not in use, as by this section directed,564.21at all times. 564.22 Sec. 5. Minnesota Statutes 1996, section 126.15, 564.23 subdivision 2, is amended to read: 564.24 Subd. 2. [APPOINTMENT OF MEMBERS.] Unless the parents or 564.25 guardian of a pupil object in writing to the school authorities 564.26 to the appointment of the pupil on a school safety patrol, it is 564.27 lawful for any pupil over nine years of age to be appointed and 564.28 designated as a memberthereof, provided thatof the patrol in 564.29 any school in which there are no pupils who have attained such 564.30 age, any pupil in the highest grade therein may be so appointed 564.31 and designated. School authorities may also appoint and 564.32 designate nonpupil adults as members of a school safety patrol 564.33 on a voluntary or for-hire basis. 564.34 Sec. 6. Minnesota Statutes 1996, section 126.15, 564.35 subdivision 3, is amended to read: 564.36 Subd. 3. [LIABILITY NOT TO ATTACH.] No liability shall 565.1 attach either to the school, educational institution, governing 565.2 board, directing authority, or any individual director, board 565.3 member, superintendent, principal, teacher, or other school 565.4 authority by virtue of the organization, maintenance, or 565.5 operation of such a school safety patrol because of injuries 565.6 sustained by any pupil, whether a member of the patrol or 565.7 otherwise by reason of the operation and maintenancethereofof 565.8 the patrol. 565.9 Sec. 7. Minnesota Statutes 1996, section 126.1995, is 565.10 amended to read: 565.11 126.1995 [SAFETY REQUIREMENT GUIDELINES.] 565.12 The departmentof children, families, and learning, in 565.13 cooperation with the Minnesota fire marshal's division,shall565.14 must develop guidelines for school lab safety. The guidelines 565.15 shall include a list of safety requirements and an explanation 565.16 of the minimum state and national laws, codes, and standards 565.17 affecting school lab safety the Minnesota fire marshal considers 565.18 necessary for schools to implement. The district superintendent 565.19mustshall ensure that every school lab within the district 565.20 complies with the school lab safety requirements. Lack of 565.21 funding is not an excuse for noncompliance. 565.22 Sec. 8. Minnesota Statutes 1996, section 126.21, 565.23 subdivision 3, is amended to read: 565.24 Subd. 3. [EXCEPTIONS.](1)(a) Notwithstanding any other 565.25 state law to the contrary, in athletic programs operated by 565.26 educational institutions or public services and designed for 565.27 participants 12 years old or older or in the 7th grade or above, 565.28 it is not an unfair discriminatory practice to restrict 565.29 membership on an athletic team to participants of one sex whose 565.30 overall athletic opportunities have previously been limited. 565.31(2)(b) When an educational institution or a public service 565.32 provides athletic teams for children 11 years old or younger or 565.33 in the 6th grade or below, those teams shall be operated without 565.34 restrictions on the basis of sex, except that when overall 565.35 athletic opportunities for one sex have previously been limited 565.36 and there is a demonstrated interest by members of that sex to 566.1 participate on a team restricted to members of that sex, the 566.2 educational institution or public service may provide a team 566.3 restricted to members of that sex. 566.4(3)(c) When two teams in the same sport are in fact 566.5 separated or substantially separated according to sex, the two 566.6 teams shall be provided with substantially equal budgets per 566.7 participant, exclusive of gate receipts and other revenues 566.8 generated by that sport, and in all other respects shall be 566.9 treated in a substantially equal manner. However, nothing in 566.10 this section shall be construed to require the two teams to 566.11 conduct combined practice sessions or any other combined 566.12 activities related to athletics. 566.13(4)(d) If two teams are provided in the same sport, one of 566.14 these teams may be restricted to members of a sex whose overall 566.15 athletic opportunities have previously been limited, and members 566.16 of either sex shall be permitted to try out for the other team. 566.17(5)(e) Notwithstanding the provisions ofclauses (1), (2)566.18 paragraphs (a), (b), and(4)(d), any wrestling team may be 566.19 restricted to members of one sex whether or not the overall 566.20 athletic opportunities of that sex have previously been limited, 566.21 provided that programs or events are provided for each sex to 566.22 the extent the educational institution or public service 566.23 determines that these programs or events are necessary to 566.24 accommodate the demonstrated interest of each sex to participate 566.25 in wrestling. 566.26 Sec. 9. Minnesota Statutes 1996, section 126.21, 566.27 subdivision 5, is amended to read: 566.28 Subd. 5. [RULES.] The state board of education, after 566.29 consultation with the commissioner of human rightsshallmust 566.30 promulgate rules in accordance with chapter 14 to implement this 566.31 section to prevent discrimination in elementary and secondary 566.32 school athletic programs operated by educational institutions. 566.33 The rules promulgated by the state board pursuant to this 566.34 section shall not require athletic competition or tournaments 566.35 for teams whose membership may be restricted to members of a sex 566.36 whose overall athletic opportunities have previously been 567.1 limited to be scheduled in conjunction with the scheduling of 567.2 athletic competition or tournaments for teams whose membership 567.3 is not so restricted by this section. Any organization, 567.4 association or league entered into by elementary or secondary 567.5 schools or public services for the purpose of promoting sports 567.6 or adopting rules and regulations for the conduct of athletic 567.7 contests between members shall provide rules and regulations and 567.8 conduct its activities so as to permit its members to comply 567.9 fully with this section. The rules of that organization, 567.10 association or league may provide separate seasons for athletic 567.11 competition or tournaments in a sport for teams whose membership 567.12 may be restricted to members of a sex whose overall athletic 567.13 opportunities have previously been limited from athletic 567.14 competition or tournaments established for teams in that same 567.15 sport whose membership is not so restricted by this section, and 567.16 its rules may prohibit a participating student from competing on 567.17 more than one school team in a given sport during a single 567.18 school year. 567.19 Sec. 10. Minnesota Statutes 1996, section 127.17, 567.20 subdivision 1, is amended to read: 567.21 Subdivision 1. [MEMBERSHIP REGULATED.] Itshall beis 567.22 unlawful for any pupil, registeredas suchand attending any 567.23 publicelementary, highschool, community college, or technical567.24college, which is partially or wholly maintained by public567.25funds,to join, become a member of, or to solicit any other 567.26 pupil of anysuchpublic school to join, or become a member of, 567.27 any secret fraternity or society wholly or partially formed from 567.28 the membership of pupils attending anysuchpublic schools or to 567.29 take part in the organization or formation of anysuch567.30 fraternity or society, exceptsuchsocieties or associationsas567.31aresanctioned by the district school boardof the district567.32concerned. 567.33 Sec. 11. Minnesota Statutes 1996, section 127.17, 567.34 subdivision 3, is amended to read: 567.35 Subd. 3. [PENALTIES.]The boards shall have full power and567.36authority, pursuant to the adoption of such rules and568.1regulations made and adopted by them, toA school board may 568.2 suspend or dismiss any pupil ofsuchthe schools therefrom, or 568.3toprevent them, or any of them,from graduating or 568.4 participating in school honors when, after investigation, in the 568.5 judgment ofsuch boardsthe board or a majority oftheirits 568.6 membership,suchthe pupil is guilty of violating any of the 568.7 provisions of this section or is guilty of violating any rule or 568.8 regulation adopted bysuch boardsthe board for the purpose of 568.9 governingsuchits schools, or enforcing this section. 568.10 Sec. 12. Minnesota Statutes 1996, section 127.17, 568.11 subdivision 4, is amended to read: 568.12 Subd. 4. ["RUSHING" OR SOLICITING FORBIDDEN.] It is a 568.13 misdemeanor for any person, not a pupil of the schools, to be 568.14 upon school grounds, or to enter any school building, for the 568.15 purpose of "rushing" or soliciting any pupil of the schools to 568.16 join any fraternity, society, or association organized outside 568.17 of the schools.Municipal and countyDistrict courts have 568.18 jurisdiction of offenses committed under this subdivision. All 568.19 persons found guilty shall be fined not less than $2, nor more 568.20 than $10, to be paid to the county treasurer or, upon failure to 568.21 pay the fine, to be imprisoned for not more than ten days. 568.22 Sec. 13. Minnesota Statutes 1996, section 127.40, 568.23 subdivision 4, is amended to read: 568.24 Subd. 4. [SCHOOL-BASED OMBUDSPERSON.] "School-based 568.25 ombudsperson" means an administrator, a teacher, a parent, or a 568.26 student representative who shall have the responsibilitiesas568.27outlined inunder section 127.412. 568.28 Sec. 14. Minnesota Statutes 1996, section 127.41, is 568.29 amended to read: 568.30 127.41 [DISCIPLINE AND REMOVAL OF STUDENTS FROM CLASS.] 568.31 Subdivision 1. [REQUIRED POLICY.] Each school boardshall568.32 must adopt a written districtwide school discipline policy which 568.33shall includeincludes written rules of conduct for students, 568.34 minimum consequences for violations of the rules, and grounds 568.35 and procedures for removal of a student from class. The policy 568.36shallmust be developed with the participation of 569.1 administrators, teachers, employees, pupils, parents, community 569.2 members, and such other individuals or organizations as the 569.3 board determines appropriate. A school site council may adopt 569.4 additional provisions to the policy subject to the approval of 569.5 the school board. 569.6 Subd. 2. [GROUNDS FOR REMOVAL FROM CLASS.] The policy 569.7shallmust establish the various grounds for which a student may 569.8 be removed from a class in the district for a period of time 569.9 pursuant to the procedures specified in the policy. The grounds 569.10 in the policyshallmust include at least the following 569.11 provisions as well as other grounds determined appropriate by 569.12 the board: 569.13 (a) willful conduct which materially and substantially 569.14 disrupts the rights of others to an education; 569.15 (b) willful conduct which endangers school district 569.16 employees, the student or other students, or the property of the 569.17 school; and 569.18 (c) willful violation of any rule of conduct specified in 569.19 the discipline policy adopted by the board. 569.20 Subd. 3. [POLICY COMPONENTS.] The policyshallmust 569.21 include at least the following components: 569.22 (a) rules governing student conduct and procedures for 569.23 informing students of the rules; 569.24 (b) the grounds for removal of a student from a class; 569.25 (c) the authority of the classroom teacher to remove 569.26 students from the classroom pursuant to procedures and rules 569.27 established in the district's policy; 569.28 (d) the procedures for removal of a student from a class by 569.29 a teacher, school administrator, or other school district 569.30 employee; 569.31 (e) the period of time for which a student may be removed 569.32 from a class, which may not exceed five class periods for a 569.33 violation of a rule of conduct; 569.34 (f) provisions relating to the responsibility for and 569.35 custody of a student removed from a class; 569.36 (g) the procedures for return of a student to the specified 570.1 class from which the student has been removed; 570.2 (h) the procedures for notifying a student and the 570.3 student's parents or guardian of violations of the rules of 570.4 conduct and of resulting disciplinary actions; 570.5 (i) any procedures determined appropriate for encouraging 570.6 early involvement of parents or guardians in attempts to improve 570.7 a student's behavior; 570.8 (j) any procedures determined appropriate for encouraging 570.9 early detection of behavioral problems; 570.10 (k) any procedures determined appropriate for referring a 570.11 student in need of special education services to those services; 570.12 (1) the procedures for consideration of whether there is a 570.13 need for a further assessment or of whether there is a need for 570.14 a review of the adequacy of a current individual education plan 570.15 of a student with a disability who is removed from class; 570.16 (m) procedures for detecting and addressing chemical abuse 570.17 problems of a student while on the school premises; 570.18 (n) the minimum consequences for violations of the code of 570.19 conduct; and 570.20 (o) procedures for immediate and appropriate interventions 570.21 tied to violations of the code. 570.22 Sec. 15. Minnesota Statutes 1996, section 127.411, is 570.23 amended to read: 570.24 127.411 [SCHOOL SITE MEDIATION BOARD.] 570.25 Subdivision 1. [BOARD ALLOWED.] A school district or 570.26 school site council may establish a school site mediation 570.27 board. The boardshallmust consist of equal numbers of staff 570.28 and parents and, in the case of secondary schools, student 570.29 representatives. Members shall be representative of the school 570.30 community andshallmust be selected by a method as determined 570.31 in the district's discipline policy. 570.32 Subd. 2. [PURPOSES AND DUTIES.] The boardshallmust 570.33 mediate issues in dispute at the school site related to the 570.34 implementation of district and school site codes of conduct 570.35 under sections 127.40 to 127.413, and the application of the 570.36 codes to a student. 571.1 Sec. 16. Minnesota Statutes 1996, section 127.412, is 571.2 amended to read: 571.3 127.412 [OMBUDSPERSON SERVICE.] 571.4 A school district or school site council may establish an 571.5 ombudsperson service for students, parents, and staff. The 571.6 serviceshallmust consist of an administrator, a student, a 571.7 parent, and a teacher. The school siteshallmust notify 571.8 students, parents, and staff of the availability of the 571.9 service. The serviceshallmust provide advocacy for 571.10 enforcement of the codes of conduct and the procedures to 571.11 remediate disputes related to implementation of the code of 571.12 conduct and the goals of the school in maintaining an orderly 571.13 learning environment for all students. 571.14 Sec. 17. Minnesota Statutes 1996, section 127.413, is 571.15 amended to read: 571.16 127.413 [NOTIFICATION.] 571.17 Representatives of the school board and the exclusive 571.18 representative of the teachers shall discuss issues related to 571.19 notification prior to placement in classrooms of students with 571.20 histories of violent behavior and any need for intervention 571.21 services or conflict resolution or training for staff insuch571.22 these cases. 571.23 Sec. 18. Minnesota Statutes 1996, section 127.42, is 571.24 amended to read: 571.25 127.42 [REVIEW OF POLICY.] 571.26 The principal or other person having general control and 571.27 supervision of the school, and representatives of parents, 571.28 students, and staff in a school building shall confer at least 571.29 annually to review the discipline policy and to assess whether 571.30 the policy has been enforced.EachA school boardshallmust 571.31 conduct an annual review of the districtwide discipline policy. 571.32 Sec. 19. Minnesota Statutes 1996, section 127.44, is 571.33 amended to read: 571.34 127.44 [AVERSIVE AND DEPRIVATION PROCEDURES.] 571.35 The state boardof education shallmust adopt rules 571.36 governing the use of aversive and deprivation procedures by 572.1 school district employees or persons under contract with a 572.2 school district. The rules must: 572.3 (1) promote the use of positive approaches and must not 572.4 encourage or require the use of aversive or deprivation 572.5 procedures; 572.6 (2) require that planned application of aversive and 572.7 deprivation procedures be a part of an individual education 572.8 plan; 572.9 (3) require parents or guardians to be notified after the 572.10 use of aversive or deprivation procedures in an emergency; 572.11 (4) establish health and safety standards for the use of 572.12 time-out procedures that require a safe environment, continuous 572.13 monitoring of the child, ventilation, and adequate space; and 572.14 (5) contain a list of prohibited procedures. 572.15 Sec. 20. Minnesota Statutes 1996, section 127.45, 572.16 subdivision 2, is amended to read: 572.17 Subd. 2. [CORPORAL PUNISHMENT NOT ALLOWED.] An employee or 572.18 agent of apublic schooldistrict shall not inflict corporal 572.19 punishment or cause corporal punishment to be inflicted upon a 572.20 pupil to reform unacceptable conduct or as a penalty for 572.21 unacceptable conduct. 572.22 Sec. 21. Minnesota Statutes 1996, section 127.455, is 572.23 amended to read: 572.24 127.455 [MODEL POLICY.] 572.25 Subdivision 1. [MODEL POLICY.] The commissionerof572.26children, families, and learningshall maintain and make 572.27 available to school boards a model sexual, religious, and racial 572.28 harassment and violence policy. The model policy shall address 572.29 the requirements of section 127.46. 572.30 Subd. 2. [SUBMISSION TO COMMISSIONER.] Each school 572.31 boardshallmust submit to the commissionerof children,572.32families, and learninga copy of the sexual, religious, and 572.33 racial harassment and sexual, religious, and racial violence 572.34 policy the board has adopted. 572.35 Sec. 22. Minnesota Statutes 1996, section 127.46, is 572.36 amended to read: 573.1 127.46 [SEXUAL, RELIGIOUS, AND RACIAL HARASSMENT AND 573.2 VIOLENCE POLICY.] 573.3EachA school boardshallmust adopt a written sexual, 573.4 religious, and racial harassment and sexual, religious, and 573.5 racial violence policy that conforms with sections 363.01 to 573.6 363.15. The policy shall apply to pupils, teachers, 573.7 administrators, and other school personnel, include reporting 573.8 procedures, and set forth disciplinary actions that will be 573.9 taken for violation of the policy. Disciplinary actions must 573.10 conform with collective bargaining agreements and sections 573.11 127.27 to 127.39. The policy must be conspicuously posted 573.12 throughout each school building, given to each district employee 573.13 and independent contractor at the time of entering into the 573.14 person's employment contract, and included in each school's 573.15 student handbook on school policies. Each school must develop a 573.16 process for discussing the school's sexual, religious, and 573.17 racial harassment and violence policy with students and school 573.18 employees. 573.19 Sec. 23. Minnesota Statutes 1996, section 127.47, 573.20 subdivision 2, is amended to read: 573.21 Subd. 2. [DISSEMINATION.] The locker policy must be 573.22 disseminated to parents and students in the way that other 573.23 policies of general application to students are disseminated. A 573.24 copy of the policy must be provided to a student the first time 573.25after the policy is effectivethat the student is given the use 573.26 of a locker. 573.27 Sec. 24. Minnesota Statutes 1996, section 127.48, is 573.28 amended to read: 573.29 127.48 [POLICY TO REFER FIREARMS POSSESSOR.] 573.30EachA school board must have a policy requiring the 573.31 appropriate school official to, as soon as practicable, refer to 573.32 the criminal justice or juvenile delinquency system, as 573.33 appropriate,anya pupil who brings a firearm to school 573.34 unlawfully. 573.35 Sec. 25. [REPEALER.] 573.36 Minnesota Statutes 1996, section 127.17, subdivision 2, is 574.1 repealed. 574.2 Sec. 26. [INSTRUCTION TO REVISOR.] 574.3 The revisor of statutes shall renumber each section of 574.4 Minnesota Statutes listed in column A with the number listed in 574.5 column B. The revisor shall also make necessary cross-reference 574.6 changes consistent with the renumbering. 574.7 Column A Column B 574.8 126.01 125B.01 574.9 126.14 125B.03 574.10 126.091 125B.05 574.11 126.83 125B.07 574.12 126.256 125B.08 574.13 126.1995 125B.10 574.14 126.033, subd. 1 125B.15, subd. 1 574.15 subd. 2 subd. 2 574.16 subd. 3 subd. 3 574.17 subd. 5 subd. 4 574.18 126.034 125B.16 574.19 126.035 125B.17 574.20 126.036 125B.18 574.21 126.037 125B.19 574.22 126.05 125B.20 574.23 126.15 125B.25 574.24 127.40 125B.26 574.25 127.41 125B.27 574.26 127.411 125B.28 574.27 127.412 125B.30 574.28 127.413 125B.31 574.29 127.42 125B.32 574.30 127.43 125B.33 574.31 127.44 125B.34 574.32 127.45 125B.35 574.33 127.455, subd. 1 125B.36, subd. 1 574.34 subd. 2 subd. 3 574.35 127.46 125B.36, subd. 2 574.36 126.21 125B.37 575.1 127.465 125B.38 575.2 127.17, subd. 1 125B.40, subd. 1 575.3 subd. 3 subd. 2 575.4 subd. 4 subd. 3 575.5 127.47 125B.41 575.6 127.48 125B.43 575.7 121.207 125B.44 575.8 127.26 125B.50 575.9 127.27 125B.51 575.10 127.28 125B.52 575.11 127.281 125B.53 575.12 127.282 125B.54 575.13 127.29 125B.55 575.14 127.30, subd. 1 125B.56, subd. 1 575.15 subd. 1a subd. 2 575.16 subd. 2 subd. 3 575.17 subd. 3 subd. 4 575.18 127.31, subd. 1 125B.57, subd. 1 575.19 subd. 2 subd. 2 575.20 subd. 3 subd. 3 575.21 subd. 4 subd. 4 575.22 subd. 5 subd. 5 575.23 subd. 7 subd. 6 575.24 subd. 8 subd. 7 575.25 subd. 9 subd. 8 575.26 subd. 10 subd. 9 575.27 subd. 11 subd. 10 575.28 subd. 12 subd. 11 575.29 subd. 13 subd. 12 575.30 subd. 14 subd. 13 575.31 subd. 15 subd. 14 575.32 127.311 125B.58 575.33 127.32 125B.59 575.34 127.33 125B.60 575.35 127.34 125B.61 575.36 127.35 125B.62 576.1 127.36 125B.63 576.2 127.37 125B.64 576.3 127.38 125B.65 576.4 127.39 125B.66 576.5 ARTICLE 10 576.6 CHAPTER 129C 576.7 CENTER FOR ARTS EDUCATION 576.8 Section 1. Minnesota Statutes 1996, section 124C.07, is 576.9 amended to read: 576.10 124C.07 [COMPREHENSIVE ARTS PLANNING PROGRAM.] 576.11 The Lola and Rudy Perpich Minnesota center for arts 576.12 education shall prescribe the form and manner of application by 576.13 one or moreschooldistricts to be designated as a site to 576.14 participate in the comprehensive arts planning program. Up to 576.15 30 sites may be selected. The center shall designate sites in 576.16 consultation with the Minnesota alliance for arts in education 576.17 and the Minnesota state arts board. 576.18 Sec. 2. Minnesota Statutes 1996, section 124C.08, 576.19 subdivision 2, is amended to read: 576.20 Subd. 2. [CRITERIA.] The center, in consultation with the 576.21 comprehensive arts planning program state steering committee, 576.22shallmust establish criteria for site selection. Criteria 576.23 shall include at least the following: 576.24 (1) a willingness by the district or group of districts to 576.25 designate a program chair for comprehensive arts planning with 576.26 sufficient authority to implement the program; 576.27 (2) a willingness by the district or group of districts to 576.28 create a committee comprised of school district and community 576.29 people whose function is to promote comprehensive arts education 576.30 in the district; 576.31 (3) commitment on the part of committee members to 576.32 participate in training offered by the department of children, 576.33 families, and learning; 576.34 (4) a commitment of the committee to conduct a needs 576.35 assessment of arts education; 576.36 (5) commitment by the committee to evaluate its involvement 577.1 in the program; 577.2 (6) a willingness by the district to adopt a long-range 577.3 plan for arts education in the district; and 577.4 (7) location of the district or group of districts to 577.5 assure representation of urban, suburban, and rural districts 577.6 and distribution of sites throughout the state. 577.7 Sec. 3. Minnesota Statutes 1996, section 124C.08, 577.8 subdivision 3, is amended to read: 577.9 Subd. 3. [PROGRAM ACCOUNTS.] A district receiving funds 577.10shallmust maintain a separate account for the receipt and 577.11 disbursement of all funds relating to the program. The funds 577.12shallmust be spent only for the purpose of arts education 577.13 programs, including teacher release time. 577.14 Sec. 4. Minnesota Statutes 1996, section 124C.09, is 577.15 amended to read: 577.16 124C.09 [MATERIALS, TRAINING, AND ASSISTANCE.] 577.17 The Lola and Rudy Perpich Minnesota center for arts 577.18 education, in cooperation with the Minnesota alliance for arts 577.19 in education and the Minnesota state arts boardshallmust 577.20 provide materials, training, and assistance to the arts 577.21 education committees in the school districts. The center may 577.22 contract with the Minnesota alliance for arts in education for 577.23 its involvement in providing services, including staff 577.24 assistance, to the program. 577.25 Sec. 5. Minnesota Statutes 1997 Supplement, section 577.26 129C.10, subdivision 3, is amended to read: 577.27 Subd. 3. [POWERS AND DUTIES OF BOARD.] (a) The board has 577.28 the powers necessary for the care, management, and control of 577.29 the Lola and Rudy Perpich Minnesota center for arts education 577.30 and all its real and personal property. The powers shall 577.31 include, but are not limited to, those listed in this 577.32 subdivision. 577.33 (b) The board may employ and discharge necessary employees, 577.34 and contract for other services to ensure the efficient 577.35 operation of the center for arts education. 577.36 (c) The board may receive and award grants. The board may 578.1 establish a charitable foundation and accept, in trust or 578.2 otherwise, any gift, grant, bequest, or devise for educational 578.3 purposes and hold, manage, invest, and dispose of them and the 578.4 proceeds and income of them according to the terms and 578.5 conditions of the gift, grant, bequest, or devise and its 578.6 acceptance. The boardshallmust adopt internal procedures to 578.7 administer and monitor aids and grants. 578.8 (d) The board may establish or coordinate evening, 578.9 continuing education, extension, and summer programs for 578.10 teachers and pupils. 578.11 (e) The board may identify pupils who have artistic talent, 578.12 either demonstrated or potential, in dance, literary arts, media 578.13 arts, music, theater, and visual arts, or in more than one art 578.14 form. 578.15 (f) The boardshallmust educate pupils with artistic 578.16 talent by providing: 578.17 (1) an interdisciplinary academic and arts program for 578.18 pupils in the 11th and 12th grades. The total number of pupils 578.19 accepted under this clause and clause (2) shall not exceed 300; 578.20 (2) additional instruction to pupils for a 13th grade. 578.21 Pupils eligible for this instruction are those enrolled in 12th 578.22 grade who need extra instruction and who apply to the board, or 578.23 pupils enrolled in the 12th grade who do not meet learner 578.24 outcomes established by the board; 578.25 (3) intensive arts seminars for one or two weeks for pupils 578.26 in grades 9 to 12; 578.27 (4) summer arts institutes for pupils in grades 9 to 12; 578.28 (5) artist mentor and extension programs in regional sites; 578.29 and 578.30 (6) teacher education programs for indirect curriculum 578.31 delivery. 578.32 (g) The board may determine the location for the Lola and 578.33 Rudy Perpich Minnesota center for arts education and any 578.34 additional facilities related to the center, including the 578.35 authority to lease a temporary facility. 578.36 (h) The board must plan for the enrollment of pupils on an 579.1 equal basis from each congressional district. 579.2 (i) The board may establish task forces as needed to advise 579.3 the board on policies and issues. The task forces expire as 579.4 provided in section 15.059, subdivision 6. 579.5 (j) The board may request the commissioner of children, 579.6 families, and learning for assistance and services. 579.7 (k) The board may enter into contracts with other public 579.8 and private agencies and institutions for residential and 579.9 building maintenance services if it determines that these 579.10 services could be provided more efficiently and less expensively 579.11 by a contractor than by the board itself. The board may also 579.12 enter into contracts with public or private agencies and 579.13 institutions, school districts or combinations of school 579.14 districts, or service cooperatives to provide supplemental 579.15 educational instruction and services. 579.16 (l) The board may provide or contract for services and 579.17 programs by and for the center for arts education, including a 579.18 store, operating in connection with the center; theatrical 579.19 events; and other programs and services that, in the 579.20 determination of the board, serve the purposes of the center. 579.21 (m) The board may provide for transportation of pupils to 579.22 and from the center for arts education for all or part of the 579.23 school year, as the board considers advisable and subject to its 579.24 rules. Notwithstanding any other law to the contrary, the board 579.25 may charge a reasonable fee for transportation of pupils. Every 579.26 driver providing transportation of pupils under this paragraph 579.27 must possess all qualifications required by the state board of 579.28 education. The board may contract for furnishing authorized 579.29 transportation under rules established by the commissioner of 579.30 children, families, and learning and may purchase and furnish 579.31 gasoline to a contract carrier for use in the performance of a 579.32 contract with the board for transportation of pupils to and from 579.33 the center for arts education. When transportation is provided, 579.34 scheduling of routes, establishment of the location of bus 579.35 stops, the manner and method of transportation, the control and 579.36 discipline of pupils, and any other related matter is within the 580.1 sole discretion, control, and management of the board. 580.2 (n) The board may provide room and board for its pupils. 580.3 If the board provides room and board, it shall charge a 580.4 reasonable fee for the room and board. The fee is not subject 580.5 to chapter 14 and is not a prohibited fee according to sections 580.6 120.71 to 120.76. 580.7 (o) The board may establish and set fees for services and 580.8 programs. If the board sets fees not authorized or prohibited 580.9 by the Minnesota public school fee law, it may do so without 580.10 complying with the requirements of section 120.75, subdivision 1. 580.11 (p) The board may apply for all competitive grants 580.12 administered by agencies of the state and other government or 580.13 nongovernment sources. 580.14 Sec. 6. Minnesota Statutes 1996, section 129C.10, 580.15 subdivision 3a, is amended to read: 580.16 Subd. 3a. [CENTER ACCOUNT.]There is established in the580.17state treasuryA center for arts education account is 580.18 established in the special revenue fund in the state treasury. 580.19 All money collected by the board, including rental income,shall580.20 must be deposited in the account. Money in the account, 580.21 including interest earned, is appropriated to the board for the 580.22 operation of its services and programs. 580.23 Sec. 7. Minnesota Statutes 1996, section 129C.10, 580.24 subdivision 3b, is amended to read: 580.25 Subd. 3b. [APPEAL.] A parent who disagrees with a board 580.26 action that adversely affects the academic program of an 580.27 enrolled pupil may appeal the board's action to the commissioner 580.28 of children, families, and learning within 30 days of the 580.29 board's action. The decision of the commissioner shall be 580.30 binding on the board. The boardshallmust inform each pupil 580.31 and parent at the time of enrolling of a parent's right to 580.32 appeal a board action affecting the pupil's academic program. 580.33 Sec. 8. Minnesota Statutes 1996, section 129C.10, 580.34 subdivision 4, is amended to read: 580.35 Subd. 4. [EMPLOYEES.] (a)(1) The boardshallmust appoint 580.36 a director of the center for arts education who shall serve in 581.1 the unclassified service. 581.2 (2) The boardshallmust employ, upon recommendation of the 581.3 director, a coordinator of resource programs who shall serve in 581.4 the unclassified service. 581.5 (3) The boardshallmust employ, upon recommendation of the 581.6 director, up to six department chairs who shall serve in the 581.7 unclassified service. The chairs shall be licensed teachers 581.8 unless no licensure exists for the subject area or discipline 581.9 for which the chair is hired. 581.10 (4) The board may employ other necessary employees, upon 581.11 recommendation of the director. 581.12 (5) The boardshallmust employ, upon recommendation of the 581.13 director, an executive secretary for the director, who shall 581.14 serve in the unclassified service. 581.15 (b) The employees hired under this subdivision and other 581.16 necessary employees hired by the board shall be state employees 581.17 in the executive branch. 581.18 Sec. 9. Minnesota Statutes 1996, section 129C.10, 581.19 subdivision 6, is amended to read: 581.20 Subd. 6. [PUBLIC POST-SECONDARY INSTITUTIONS; PROVIDING 581.21 SPACE.] Public post-secondary institutionsshallmust provide 581.22 space for programs offered by the Lola and Rudy Perpich 581.23 Minnesota center for arts education at no cost or reasonable 581.24 cost to the center to the extent that space is available at the 581.25 public post-secondary institutions. 581.26 Sec. 10. Minnesota Statutes 1996, section 129C.15, is 581.27 amended to read: 581.28 129C.15 [RESOURCE, MAGNET, AND OUTREACH PROGRAMS.] 581.29 Subdivision 1. [RESOURCE AND OUTREACH.] The center 581.30shallmust offer resource and outreach programs and services 581.31 statewide aimed at the enhancement of arts education 581.32 opportunities for pupils in elementary and secondary school. 581.33 The programs and servicesshallmust include: 581.34 (1) developing and demonstrating exemplary curriculum, 581.35 instructional practices, and assessment; 581.36 (2) disseminating information; and 582.1 (3) providing programs for pupils and teachers that develop 582.2 technical and creative skills in art forms that are 582.3 underrepresented and in geographic regions that are underserved. 582.4 Subd. 2. [MAGNET PROGRAMS.] The centershallmust identify 582.5 at least one school district in each congressional district with 582.6 interest and the potential to offer magnet arts programs using 582.7 the curriculum developed by the Lola and Rudy Perpich Minnesota 582.8 center for arts education. 582.9 Subd. 3. [CENTER RESPONSIBILITIES.] The centershallmust: 582.10 (1) provide information and technical services to arts 582.11 teachers, professional arts organizations, school districts, and 582.12 the department of children, families, and learning; 582.13 (2) gather and conduct research in arts education; 582.14 (3) design and promote arts education opportunities for all 582.15 Minnesota pupils in elementary and secondary schools; and 582.16 (4) serve as liaison for the department of children, 582.17 families, and learning to national organizations for arts 582.18 education. 582.19 Sec. 11. [INSTRUCTION TO REVISOR.] 582.20 The revisor of statutes shall renumber each section of 582.21 Minnesota Statutes listed in column A with the number listed in 582.22 column B. The revisor shall also make necessary cross-reference 582.23 changes consistent with the renumbering. 582.24 Column A Column B 582.25 124C.09 129C.20 582.26 124C.07 129C.25 582.27 124C.08 129C.26 582.28 ARTICLE 11 582.29 GENERAL PROVISIONS 582.30 Section 1. [BONDS AND CERTIFICATES.] 582.31 A debt obligation authorized and issued by a repealed 582.32 section in this act must be paid for and retired according to 582.33 the section authorizing the debt obligation and the terms of the 582.34 obligation and bond indentures and trust agreements. 582.35 Sec. 2. [REPEALER.] 582.36 Minnesota Statutes 1996, section 127.01, is repealed. 583.1 Sec. 3. [REVISOR INSTRUCTION.] 583.2 (a) If a provision of a section of Minnesota Statutes 583.3 amended by this act is amended by the 1998 regular session, the 583.4 revisor shall codify the amendment consistent with the 583.5 recodification of the affected section by this act, 583.6 notwithstanding any law to the contrary. 583.7 (b) In the next and subsequent editions of Minnesota 583.8 Statutes and Minnesota Rules, the revisor shall correct all 583.9 cross-references to sections renumbered, recodified, or repealed 583.10 by this act. 583.11 Sec. 4. [EFFECTIVE DATE.] 583.12 This act is effective July 1, 1998.