HF 2174

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to education; recodifying kindergarten 
  1.3             through grade 12 education statutes; amending 
  1.4             Minnesota Statutes 1996, sections 120.02; 120.06; 
  1.5             120.062, subdivisions 3, 4, 5, 6, 7, and 8a; 120.0621; 
  1.6             120.064; 120.075; 120.0751; 120.0752; 120.101, 
  1.7             subdivisions 5, 5a, 5c, 7, 8, 9, and 10; 120.102; 
  1.8             120.103, subdivisions 3, 4, 5, and 6; 120.105; 120.11; 
  1.9             120.14; 120.73; 120.74; 120.75; 120.76; 120.80; 
  1.10            121.1601, by adding a subdivision; 122.01; 122.02; 
  1.11            122.03; 122.21; 122.22; 122.23; 122.241; 122.242; 
  1.12            122.243; 122.245, subdivision 2; 122.246; 122.247, 
  1.13            subdivisions 2 and 2a; 122.248; 122.25; 122.32; 
  1.14            122.34; 122.355; 122.41; 122.43; 122.44; 122.45; 
  1.15            122.46; 122.47; 122.48; 122.531, subdivisions 1, 2c, 
  1.16            5a, and 9; 122.5311, subdivision 1; 122.532, 
  1.17            subdivisions 2, 3a, and 4; 122.535; 122.541; 122.895; 
  1.18            122.91; 122.93, subdivisions 3 and 8; 122.95; 123.11; 
  1.19            123.12; 123.13; 123.15; 123.33; 123.335; 123.34; 
  1.20            123.35, subdivisions 1, 2, 3, 4, 6, 7, 8c, 9b, 11, 12, 
  1.21            15, 20, and by adding subdivisions; 123.36; 123.37; 
  1.22            123.38; 123.39; 123.63; 123.64; 123.66; 123.75, 
  1.23            subdivisions 2, 3, and 5; 123.751; 125.03; 125.05, 
  1.24            subdivisions 1, 1a, 1c, 6, and 8; 125.06; 125.09; 
  1.25            125.11; 125.12, subdivisions 1a, 2, 2a, 3, 3b, 4, 6, 
  1.26            6a, 6b, 7, 8, 9, 9a, 10, 11, 13, and 14; 125.121; 
  1.27            125.13; 125.135; 125.138; 125.16; 125.17; 125.18; 
  1.28            125.182; 125.183; 125.184; 125.185; 125.187; 125.188, 
  1.29            subdivisions 1, 3, and 5; 125.1885, subdivision 5; 
  1.30            125.189; 125.1895, subdivision 4; 125.211, subdivision 
  1.31            2; 125.230, subdivisions 4, 6, and 7; 125.231, 
  1.32            subdivision 3; 125.53; 125.54; 125.60; 125.611; 
  1.33            125.62, subdivisions 2, 3, and 7; 125.623, subdivision 
  1.34            3; 125.80; 126.05; 126.14; 126.1995; 129C.10, 
  1.35            subdivisions 3, 3a, 3b, 4, and 6; and 129C.15; 
  1.36            proposing coding for new law in Minnesota Statutes, 
  1.37            chapters 120; 121; 122; 123; 125; and 129C; proposing 
  1.38            coding for new law as Minnesota Statutes, chapters 
  1.39            120A; 120B; and 124D; repealing Minnesota Statutes 
  1.40            1996, sections 120.0112; 120.03; 120.05; 120.08; 
  1.41            120.1045; 120.17; 120.1701; 120.172; 120.173; 120.181; 
  1.42            120.1811; 120.182; 120.183; 120.185; 120.187; 120.188; 
  1.43            120.189; 120.190; 120.59; 120.60; 120.61; 120.62; 
  1.44            120.63; 120.64; 120.65; 120.66; 120.67; 120.71; 
  1.45            120.72; 121.11, subdivisions 5, 7c, 7d, 12, and 14; 
  1.46            121.1115; 121.155; 121.166; 121.17; 121.203; 121.207; 
  2.1             121.585; 121.602; 121.608; 121.611; 121.615; 121.70; 
  2.2             121.701; 121.702; 121.703; 121.704; 121.705; 121.706; 
  2.3             121.707; 121.708; 121.709; 121.710; 121.831; 121.835; 
  2.4             121.8355; 121.85; 121.88; 121.882; 121.885; 121.904; 
  2.5             121.906; 121.908; 121.911; 121.912; 121.9121; 121.914; 
  2.6             121.915; 121.917; 121.935; 122.52; 122.532, 
  2.7             subdivision 1; 123.35, subdivisions 5, 8, 8a, 8b, 9, 
  2.8             10, 13, 17, 19a, 19b, and 21; 123.351; 123.3513; 
  2.9             123.3514; 123.40; 123.41; 123.42; 123.582; 123.681; 
  2.10            123.70; 123.701; 123.702; 123.704; 123.7045; 123.71; 
  2.11            123.72; 123.76; 123.77; 123.78; 123.79; 123.799; 
  2.12            123.7991; 123.7992; 123.801; 123.805; 123.931; 
  2.13            123.932; 123.933; 123.935; 123.936; 123.9361; 
  2.14            123.9362; 123.937; 123.947; 123.951; 123.97; 123.972; 
  2.15            124.01; 124.06; 124.07; 124.078; 124.079; 124.08; 
  2.16            124.09; 124.10; 124.12; 124.14; 124.15; 124.155; 
  2.17            124.17; 124.175; 124.177; 124.18; 124.19; 124.193; 
  2.18            124.195; 124.196; 124.2131; 124.2134; 124.2139; 
  2.19            124.214; 124.223; 124.225; 124.226; 124.227; 124.239; 
  2.20            124.242; 124.2442; 124.2445; 124.245; 124.2455; 
  2.21            124.248; 124.255; 124.26; 124.2601; 124.2605; 124.261; 
  2.22            124.2613; 124.2615; 124.2711; 124.2712; 124.2713; 
  2.23            124.2714; 124.2715; 124.2716; 124.2725; 124.2726; 
  2.24            124.2727; 124.2728; 124.273; 124.276; 124.278; 
  2.25            124.311; 124.312; 124.313; 124.314; 124.32; 124.3201; 
  2.26            124.3202; 124.321; 124.322; 124.323; 124.35; 124.36; 
  2.27            124.37; 124.38; 124.381; 124.39; 124.40; 124.41; 
  2.28            124.42; 124.431; 124.44; 124.45; 124.46; 124.472; 
  2.29            124.473; 124.474; 124.476; 124.477; 124.478; 124.479; 
  2.30            124.48; 124.481; 124.491; 124.492; 124.493; 124.494; 
  2.31            124.4945; 124.4946; 124.495; 124.511; 124.573; 
  2.32            124.574; 124.625; 124.63; 124.646; 124.6462; 124.6469; 
  2.33            124.647; 124.6471; 124.6472; 124.648; 124.71; 124.72; 
  2.34            124.73; 124.74; 124.75; 124.755; 124.76; 124.82; 
  2.35            124.829; 124.83; 124.84; 124.85; 124.86; 124.90; 
  2.36            124.91; 124.912; 124.914; 124.916; 124.918; 124.95; 
  2.37            124.961; 124.97; 124A.02; 124A.029; 124A.03; 
  2.38            124A.0311; 124A.032; 124A.034; 124A.035; 124A.036; 
  2.39            124A.04; 124A.22; 124A.225; 124A.23; 124A.24; 124A.26; 
  2.40            124A.28; 124A.29; 124A.291; 124A.292; 124A.30; 
  2.41            124A.31; 124A.697; 124A.698; 124A.70; 124A.71; 
  2.42            124A.711; 124A.72; 124A.73; 124C.07; 124C.08; 124C.09; 
  2.43            124C.10; 124C.11; 124C.12; 124C.41; 124C.45; 124C.46; 
  2.44            124C.47; 124C.48; 124C.49; 124C.498; 124C.55; 124C.56; 
  2.45            124C.57; 124C.58; 124C.60; 124C.71; 124C.72; 124C.73; 
  2.46            124C.74; 124C.77; 125.70; 125.701; 125.702; 125.703; 
  2.47            125.704; 125.705; 126.113; 126.115; 126.12; 126.13; 
  2.48            126.15; 126.151; 126.20; 126.202; 126.21; 126.22; 
  2.49            126.23; 126.235; 126.237; 126.239; 126.261; 126.262; 
  2.50            126.264; 126.265; 126.266; 126.267; 126.269; 126.36; 
  2.51            126.43; 126.45; 126.46; 126.47; 126.48; 126.49; 
  2.52            126.50; 126.501; 126.51; 126.52; 126.531; 126.54; 
  2.53            126.55; 126.56; 126.681; 126.69; 126.699; 126.70; 
  2.54            126.72; 126.77; 126.78; 126.82; 126.84; 126A.01; 
  2.55            126A.06; 126B.01; 126B.03; 126B.06; 126B.10; 127.01; 
  2.56            127.02; 127.03; 127.04; 127.05; 127.06; 127.08; 
  2.57            127.09; 127.10; 127.11; 127.12; 127.13; 127.15; 
  2.58            127.16; 127.17; 127.19; 127.20; 127.21; 127.23; 
  2.59            127.25; 127.26; 127.27; 127.28; 127.281; 127.282; 
  2.60            127.29; 127.30; 127.31; 127.311; 127.32; 127.33; 
  2.61            127.34; 127.35; 127.36; 127.37; 127.38; 127.39; 
  2.62            127.40; 127.41; 127.411; 127.412; 127.413; 127.42; 
  2.63            127.43; 127.44; 127.45; 127.455; 127.46; 127.47; and 
  2.64            127.48. 
  2.65  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.66                             ARTICLE 1
  2.67                            CHAPTER 120
  3.1      Section 1.  Minnesota Statutes 1996, section 120.02, is 
  3.2   amended to read: 
  3.3      120.02 [DEFINITIONS.] 
  3.4      Subdivision 1.  [SCOPE.] For the purposes of this chapter 
  3.5   the words, phrases and terms defined in this section shall have 
  3.6   the meanings respectively ascribed to given them. 
  3.7      Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
  3.8   commissioner of children, families, and learning. 
  3.9      Subd. 3.  [DISTRICT.] "District" means a school district. 
  3.10     Subd. 4.  [BOARD.] "Board" means a school board. 
  3.11     Subd. 5.  [COUNTY BOARD.] "County board" means a board of 
  3.12  county commissioners. 
  3.13     Subd. 6.  [SUPERINTENDENT.] "Superintendent" means 
  3.14  superintendent of the school district involved. 
  3.15     Subd. 8.  [DEPARTMENT.] "Department" means the department 
  3.16  of children, families, and learning. 
  3.17     Subd. 9.  [AUDITOR.] "Auditor" means county auditor. 
  3.18     Subd. 12.  [STATE BOARD.] "State board" means state board 
  3.19  of education. 
  3.20     Subd. 13.  [COMMON DISTRICT.] A "Common district" is 
  3.21  means any school district validly created and existing as a 
  3.22  common school district or joint common school district as of 
  3.23  July 1, 1957, or pursuant to the terms of the education code. 
  3.24     Subd. 14.  [INDEPENDENT DISTRICT.] An "Independent district 
  3.25  "  is means any school district validly created and existing as 
  3.26  an independent, consolidated, joint independent, county or a ten 
  3.27  or more township district as of July 1, 1957, or pursuant to the 
  3.28  education code. 
  3.29     Subd. 15.  [SPECIAL DISTRICT.] A "Special district" is 
  3.30  means a district established by a charter granted by the 
  3.31  legislature or by a home rule charter including any 
  3.32  district which is designated a special independent school 
  3.33  district by the legislature. 
  3.34     Subd. 18.  [SCHOOL DISTRICT TAX.] "School district tax" is 
  3.35  means the tax levied and collected to provide the amount of 
  3.36  money voted or levied by the district or the board for school 
  4.1   purposes. 
  4.2      Subd. 19.  [ELEMENTARY SCHOOL.] "Elementary school" means 
  4.3   any school with building, equipment, courses of study, class 
  4.4   schedules, enrollment of pupils ordinarily in grades 1 through 6 
  4.5   or any portion thereof, and staff meeting the standards 
  4.6   established by the state board. 
  4.7      The state board shall not close a school or deny any state 
  4.8   aids to a district for its elementary schools because of 
  4.9   enrollment limitations classified in accordance with the 
  4.10  provisions of subdivision 2, clause (1). 
  4.11     Subd. 20.  [MIDDLE SCHOOL.] "Middle school" means any 
  4.12  school other than a secondary school giving an approved course 
  4.13  of study in a minimum of three consecutive grades above 4th but 
  4.14  below 10th with building, equipment, courses of study, class 
  4.15  schedules, enrollment, and staff meeting the standards 
  4.16  established by the state board of education. 
  4.17     Subd. 21.  [SECONDARY SCHOOL.] "Secondary school" means any 
  4.18  school with building, equipment, courses of study, class 
  4.19  schedules, enrollment of pupils ordinarily in grades 7 through 
  4.20  12 or any portion thereof, and staff meeting the standards 
  4.21  established by the state board of education. 
  4.22     Subd. 22.  [VOCATIONAL CENTER SCHOOL.] "Vocational center 
  4.23  school" means any school serving a group of secondary schools 
  4.24  with approved areas of secondary vocational training and 
  4.25  offering vocational secondary and adult programs necessary to 
  4.26  meet local needs and meeting standards established by the state 
  4.27  board. 
  4.28     Sec. 2.  Minnesota Statutes 1996, section 120.06, is 
  4.29  amended to read: 
  4.30     120.06 [ADMISSION TO PUBLIC SCHOOL.] 
  4.31     Subdivision 1.  [AGE LIMITATIONS; PUPILS.] All schools 
  4.32  supported in whole or in part by state funds are public schools. 
  4.33  Admission to a public school is free to any person who resides 
  4.34  within the district which that operates the school, who is under 
  4.35  21 years of age, and who satisfies the minimum age requirements 
  4.36  imposed by this section.  Notwithstanding the provisions of any 
  5.1   law to the contrary, the conduct of all students under 21 years 
  5.2   of age attending a public secondary school shall be is governed 
  5.3   by a single set of reasonable rules and regulations promulgated 
  5.4   by the school board.  No person shall be admitted to any public 
  5.5   school (1) as a kindergarten pupil, unless the pupil is at least 
  5.6   five years of age on September 1 of the calendar year in which 
  5.7   the school year for which the pupil seeks admission commences; 
  5.8   or (2) as a 1st grade student, unless the pupil is at least six 
  5.9   years of age on September 1 of the calendar year in which the 
  5.10  school year for which the pupil seeks admission commences or has 
  5.11  completed kindergarten; except that any school board may 
  5.12  establish a policy for admission of selected pupils at an 
  5.13  earlier age. 
  5.14     Subd. 2a.  [EDUCATION OF HOMELESS.] Notwithstanding 
  5.15  subdivision 1, a district must not deny free admission to a 
  5.16  homeless person of school age solely because the school district 
  5.17  cannot determine that the person is a resident of the school 
  5.18  district. 
  5.19     Subd. 3.  [PUPILS, AT LEAST 21 YEARS OF AGE.] In addition 
  5.20  to those admitted under subdivision 1, admission to a public 
  5.21  secondary school is free to a person who is eligible under this 
  5.22  subdivision.  In order to be eligible, a person must be: 
  5.23     (1) at least 21 years of age; 
  5.24     (2) a resident of the district where the secondary school 
  5.25  is located; and 
  5.26     (3) eligible under section 126.22, subdivision 2. 
  5.27     Free admission is limited to two school years or the 
  5.28  equivalent, or until the pupil completes the courses required to 
  5.29  graduate, whichever is less.  A district that admits a person to 
  5.30  school under this section must have a reasonable expectation 
  5.31  that the person can obtain a diploma within two years. 
  5.32     Sec. 3.  Minnesota Statutes 1996, section 120.062, 
  5.33  subdivision 3, is amended to read: 
  5.34     Subd. 3.  [CLOSED DISTRICTS.] A school board may, by 
  5.35  resolution, determine that nonresident pupils may not attend any 
  5.36  of its schools or programs according to this section.  
  6.1      Sec. 4.  Minnesota Statutes 1996, section 120.062, 
  6.2   subdivision 4, is amended to read: 
  6.3      Subd. 4.  [PUPIL APPLICATION PROCEDURES.] In order that a 
  6.4   pupil may attend a school or program in a nonresident district, 
  6.5   the pupil's parent or guardian must submit an application to the 
  6.6   nonresident district.  Before submitting an application, the 
  6.7   pupil and the pupil's parent or guardian must explore with a 
  6.8   school guidance counselor, or other appropriate staff member 
  6.9   employed by the district the pupil is currently attending, the 
  6.10  pupil's academic or other reason for applying to enroll in a 
  6.11  nonresident district.  The pupil's application must identify the 
  6.12  reason for enrolling in the nonresident district.  The parent or 
  6.13  guardian of a pupil must submit an application by January 15 for 
  6.14  initial enrollment beginning the following school year.  The 
  6.15  application shall must be on a form provided by the department 
  6.16  of children, families, and learning.  A particular school or 
  6.17  program may be requested by the parent.  Once enrolled in a 
  6.18  nonresident district, the pupil may remain enrolled and is not 
  6.19  required to submit annual or periodic applications.  To return 
  6.20  to the resident district or to transfer to a different 
  6.21  nonresident district, the parent or guardian of the pupil must 
  6.22  provide notice to the resident district or apply to a different 
  6.23  nonresident district by January 15 for enrollment beginning the 
  6.24  following school year. 
  6.25     Sec. 5.  Minnesota Statutes 1996, section 120.062, 
  6.26  subdivision 5, is amended to read: 
  6.27     Subd. 5.  [DESEGREGATION DISTRICT TRANSFERS.] (a) This 
  6.28  subdivision applies to a transfer into or out of a district that 
  6.29  has a desegregation plan approved by the commissioner of 
  6.30  children, families, and learning. 
  6.31     (b) An application to transfer may be submitted at any time 
  6.32  for enrollment beginning at any time. 
  6.33     (c) The parent or guardian of a pupil who is a resident of 
  6.34  a district that has a desegregation plan must submit an 
  6.35  application to the resident district.  If the district accepts 
  6.36  the application, it must forward the application to the 
  7.1   nonresident district. 
  7.2      (d) The parent or guardian of a pupil who applies for 
  7.3   enrollment in a nonresident district that has a desegregation 
  7.4   plan must submit an application to the nonresident district.  
  7.5      (e) Each district must accept or reject an application it 
  7.6   receives and notify the parent or guardian in writing within 30 
  7.7   calendar days of receiving the application.  A notification of 
  7.8   acceptance must include the date enrollment can begin. 
  7.9      (f) If an application is rejected, the district must state 
  7.10  the reason for rejection in the notification.  If a district 
  7.11  that has a desegregation plan rejects an application for a 
  7.12  reason related to the desegregation plan, the district must 
  7.13  state with specificity how acceptance of the application would 
  7.14  result in noncompliance with state board rules with respect to 
  7.15  the school or program for which application was made.  
  7.16     (g) If an application is accepted, the parent or guardian 
  7.17  must notify the nonresident district in writing within 15 
  7.18  calendar days of receiving the acceptance whether the pupil 
  7.19  intends to enroll in the nonresident district.  Notice of 
  7.20  intention to enroll obligates the pupil to enroll in the 
  7.21  nonresident district, unless the school boards of the resident 
  7.22  and nonresident districts agree otherwise.  If a parent or 
  7.23  guardian does not notify the nonresident district, the pupil may 
  7.24  not enroll in that nonresident district at that time, unless the 
  7.25  school boards of the resident and nonresident district agree 
  7.26  otherwise. 
  7.27     (h) Within 15 calendar days of receiving the notice from 
  7.28  the parent or guardian, the nonresident district shall notify 
  7.29  the resident district in writing of the pupil's intention to 
  7.30  enroll in the nonresident district.  
  7.31     (i) A pupil enrolled in a nonresident district under this 
  7.32  subdivision is not required to make annual or periodic 
  7.33  application for enrollment but may remain enrolled in the same 
  7.34  district.  A pupil may transfer to the resident district at any 
  7.35  time.  
  7.36     (j) A pupil enrolled in a nonresident district and applying 
  8.1   to transfer into or out of a district that has a desegregation 
  8.2   plan must follow the procedures of this subdivision.  For the 
  8.3   purposes of this type of transfer, "resident district" means the 
  8.4   nonresident district in which the pupil is enrolled at the time 
  8.5   of application.  
  8.6      (k) A district that has a desegregation plan approved by 
  8.7   the state board of education must accept or reject each 
  8.8   individual application in a manner that will enable compliance 
  8.9   with its desegregation plan. 
  8.10     Sec. 6.  Minnesota Statutes 1996, section 120.062, 
  8.11  subdivision 6, is amended to read: 
  8.12     Subd. 6.  [NONRESIDENT DISTRICT PROCEDURES.] A district 
  8.13  that does not exclude nonresident pupils, according to 
  8.14  subdivision 3, shall notify the parent or guardian in writing by 
  8.15  February 15 whether the application has been accepted or 
  8.16  rejected.  If an application is rejected, the district must 
  8.17  state in the notification the reason for rejection.  The parent 
  8.18  or guardian shall must notify the nonresident district by March 
  8.19  1 whether the pupil intends to enroll in the nonresident 
  8.20  district.  Notice of intent to enroll in the nonresident 
  8.21  district obligates the pupil to attend the nonresident district 
  8.22  during the following school year, unless the school boards of 
  8.23  the resident and the nonresident districts agree in writing to 
  8.24  allow the pupil to transfer back to the resident district, or 
  8.25  the pupil's parents or guardians change residence to another 
  8.26  district.  If a parent or guardian does not notify the 
  8.27  nonresident district, the pupil may not enroll in that 
  8.28  nonresident district during the following school year, unless 
  8.29  the school boards of the resident and nonresident district agree 
  8.30  otherwise.  The nonresident district shall must notify the 
  8.31  resident district by March 15 of the pupil's intent to enroll in 
  8.32  the nonresident district.  The same procedures apply to a pupil 
  8.33  who applies to transfer from one participating nonresident 
  8.34  district to another participating nonresident district. 
  8.35     Sec. 7.  Minnesota Statutes 1996, section 120.062, 
  8.36  subdivision 7, is amended to read: 
  9.1      Subd. 7.  [BASIS FOR DECISIONS.] The school board must 
  9.2   adopt, by resolution, specific standards for acceptance and 
  9.3   rejection of applications.  Standards may include the capacity 
  9.4   of a program, class, grade level, or school building.  Standards 
  9.5   may not include previous academic achievement, athletic or other 
  9.6   extracurricular ability, disabling conditions, proficiency in 
  9.7   the English language, or previous disciplinary proceedings.  
  9.8      Sec. 8.  Minnesota Statutes 1996, section 120.062, 
  9.9   subdivision 8a, is amended to read: 
  9.10     Subd. 8a.  [EXCEPTIONS TO DEADLINES.] Notwithstanding 
  9.11  subdivision 4, the following pupil application procedures apply: 
  9.12     (a) Upon agreement of the resident and nonresident school 
  9.13  districts, a pupil may submit an application to a nonresident 
  9.14  district after January 15 for enrollment beginning the following 
  9.15  school year.  
  9.16     (b) If, as a result of entering into, modifying, or 
  9.17  terminating an agreement between school boards, a pupil is 
  9.18  assigned after December 1 to a different school for enrollment 
  9.19  beginning at any time, the pupil, the pupil's siblings, or any 
  9.20  other pupil residing in the pupil's residence may submit an 
  9.21  application to a nonresident district at any time before July 1 
  9.22  for enrollment beginning the following school year. 
  9.23     (c) A pupil who becomes a resident of a school district 
  9.24  after December 1 may submit an application to a nonresident 
  9.25  district on January 15 or any time after that date for 
  9.26  enrollment beginning any time before the following December 1. 
  9.27     (d) If the commissioner of children, families, and learning 
  9.28  and the commissioner of human rights determine that the 
  9.29  policies, procedures, or practices of a school district are in 
  9.30  violation of Title VI of the Civil Rights Act of 1964 (Public 
  9.31  Law Number 88-352) or chapter 363, any pupil in the district may 
  9.32  submit an application to a nonresident district at any time for 
  9.33  enrollment beginning at any time. 
  9.34     For exceptions under this subdivision, the applicant, the 
  9.35  applicant's parent or guardian, the district of residence, and 
  9.36  the district of attendance must observe, in a prompt and 
 10.1   efficient manner, the application and notice procedures in 
 10.2   subdivisions 4 and 6, except that the application and notice 
 10.3   deadlines do not apply. 
 10.4      Sec. 9.  Minnesota Statutes 1996, section 120.0621, is 
 10.5   amended to read: 
 10.6      120.0621 [ENROLLMENT OPTIONS PROGRAMS IN BORDER STATES.] 
 10.7      Subdivision 1.  [OPTIONS FOR ENROLLMENT IN ADJOINING 
 10.8   STATES.] Minnesota pupils and pupils residing in adjoining 
 10.9   states may enroll in school districts in the other state 
 10.10  according to: 
 10.11     (1) section 120.08, subdivision 2; or 
 10.12     (2) this section. 
 10.13     Subd. 2.  [PUPILS IN MINNESOTA.] A Minnesota resident pupil 
 10.14  may enroll in a school district in an adjoining state if the 
 10.15  district to be attended borders Minnesota. 
 10.16     Subd. 3.  [PUPILS IN BORDERING STATES.] A non-Minnesota 
 10.17  pupil who resides in an adjoining state in a school district 
 10.18  that borders Minnesota may enroll in a Minnesota school district 
 10.19  if either the school board of the district in which the pupil 
 10.20  resides or state in which the pupil resides pays tuition to the 
 10.21  school district in which the pupil is enrolled.  
 10.22     Subd. 3a.  [CANADIAN PUPILS.] A pupil who resides in Canada 
 10.23  may enroll in a Minnesota school district if the province in 
 10.24  which the pupil resides pays tuition to the school district in 
 10.25  which the pupil is enrolled.  A pupil may enroll either full 
 10.26  time or part time for all instructional programs and shall be 
 10.27  considered eligible for all other purposes for all other 
 10.28  programs offered by the district.  The tuition must be an amount 
 10.29  that is at least comparable to the tuition specified in section 
 10.30  120.08, subdivision 1.  A school district may accept funds from 
 10.31  any international agency for these programs. 
 10.32     Subd. 4.  [PROCEDURAL REQUIREMENTS.] Except as otherwise 
 10.33  provided in this section, the rights and duties set forth in 
 10.34  section 120.062 apply to Minnesota pupils, parents, and school 
 10.35  districts if a pupil enrolls in a nonresident district according 
 10.36  to this section. 
 11.1      Subd. 5a.  [TUITION PAYMENTS.] In each odd-numbered year, 
 11.2   before March 1, the state board of education shall must agree to 
 11.3   rates of tuition for Minnesota elementary and secondary pupils 
 11.4   attending in other states for the next two fiscal years.  
 11.5   The state board shall must negotiate equal, reciprocal rates 
 11.6   with the designated authority in each state for pupils who 
 11.7   reside in an adjoining state and enroll in a Minnesota school 
 11.8   district.  The rates must be at least equal to the tuition 
 11.9   specified in section 120.08, subdivision 1.  The tuition rate 
 11.10  for a pupil with a disability must be equal to the actual cost 
 11.11  of instruction and services provided.  The resident district of 
 11.12  a Minnesota pupil attending in another state under this section 
 11.13  must pay the amount of tuition agreed upon in this section to 
 11.14  the district of attendance, prorated on the basis of the 
 11.15  proportion of the school year attended. 
 11.16     Subd. 5b.  [TRANSPORTATION OF STUDENTS.] (a) The agreement 
 11.17  under subdivision 5a with each state must specify that the 
 11.18  attending district in each state transport a pupil from the 
 11.19  district boundary to the school of attendance.  
 11.20     (b) Notwithstanding paragraph (a), the districts of 
 11.21  residence and attendance may agree that either district may 
 11.22  provide transportation from a pupil's home or agreed upon 
 11.23  location to school.  Transportation aid for Minnesota students 
 11.24  eligible for aid shall must be paid only for transportation 
 11.25  within the resident district. 
 11.26     Subd. 6.  [EFFECTIVE IF RECIPROCAL.] This section is 
 11.27  effective with respect to South Dakota upon enactment of 
 11.28  provisions by South Dakota that are essentially similar to the 
 11.29  provisions for Minnesota pupils in this section.  After July 1, 
 11.30  1993, This section is effective with respect to any other 
 11.31  bordering state upon enactment of provisions by the bordering 
 11.32  state that are essentially similar to the provisions for 
 11.33  Minnesota pupils in this section. 
 11.34     Sec. 10.  Minnesota Statutes 1996, section 120.064, is 
 11.35  amended to read: 
 11.36     120.064 [RESULTS-ORIENTED CHARTER SCHOOLS.] 
 12.1      Subdivision 1.  [PURPOSES.] (a) The purpose of this section 
 12.2   is to: 
 12.3      (1) improve pupil learning; 
 12.4      (2) increase learning opportunities for pupils; 
 12.5      (3) encourage the use of different and innovative teaching 
 12.6   methods; 
 12.7      (4) require the measurement of learning outcomes and create 
 12.8   different and innovative forms of measuring outcomes; 
 12.9      (5) establish new forms of accountability for schools; or 
 12.10     (6) create new professional opportunities for teachers, 
 12.11  including the opportunity to be responsible for the learning 
 12.12  program at the school site. 
 12.13     (b) This section does not provide a means to keep open a 
 12.14  school that otherwise would be closed.  Applicants in these 
 12.15  circumstances bear the burden of proving that conversion to a 
 12.16  charter school fulfills a purpose specified in this subdivision, 
 12.17  independent of the school's closing. 
 12.18     Subd. 2.  [APPLICABILITY.] This section applies only to 
 12.19  charter schools formed and operated under this section. 
 12.20     Subd. 3.  [SPONSOR.] A school board, community college, 
 12.21  state university, technical college, or the University of 
 12.22  Minnesota may sponsor one or more charter schools. 
 12.23     No more than a total of 40 charter schools may be 
 12.24  authorized, not more than three of which may be sponsored by 
 12.25  public post-secondary institutions.  The state board of 
 12.26  education shall must advise potential sponsors when the maximum 
 12.27  number of charter schools has been authorized. 
 12.28     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
 12.29  authorize one or more licensed teachers under section 125.05, 
 12.30  subdivision 1, to operate a charter school subject to approval 
 12.31  by the state board of education.  If a school board elects not 
 12.32  to sponsor a charter school, the applicant may appeal the school 
 12.33  board's decision to the state board of education if two members 
 12.34  of the school board voted to sponsor the school.  If the state 
 12.35  board authorizes the school, the state board shall must sponsor 
 12.36  the school according to this section.  The school shall must be 
 13.1   organized and operated as a cooperative under chapter 308A or a 
 13.2   nonprofit corporation under chapter 317A.  
 13.3      (b) Before the operators may form and operate a school, the 
 13.4   sponsor must file an affidavit with the state board of education 
 13.5   stating its intent to authorize a charter school.  The affidavit 
 13.6   must state the terms and conditions under which the sponsor 
 13.7   would authorize a charter school.  The state board must approve 
 13.8   or disapprove the sponsor's proposed authorization within 60 
 13.9   days of receipt of the affidavit.  Failure to obtain state board 
 13.10  approval precludes a sponsor from authorizing the charter school 
 13.11  that was the subject of the affidavit.  
 13.12     (c) The operators authorized to organize and operate a 
 13.13  school shall must hold an election for members of the school's 
 13.14  board of directors in a timely manner after the school is 
 13.15  operating.  Any staff members who are employed at the school, 
 13.16  including teachers providing instruction under a contract with a 
 13.17  cooperative, and all parents of children enrolled in the school 
 13.18  may participate in the election.  Licensed teachers employed at 
 13.19  the school, including teachers providing instruction under a 
 13.20  contract with a cooperative, must be a majority of the members 
 13.21  of the board of directors.  A provisional board may operate 
 13.22  before the election of the school's board of directors.  Board 
 13.23  of director meetings must comply with section 471.705. 
 13.24     (d) The granting or renewal of a charter by a sponsoring 
 13.25  entity shall must not be conditioned upon the bargaining unit 
 13.26  status of the employees of the school. 
 13.27     Subd. 4a.  [CONVERSION OF EXISTING SCHOOLS.] A school board 
 13.28  may convert one or more of its existing schools to charter 
 13.29  schools under this section if 90 percent of the full-time 
 13.30  teachers at the school sign a petition seeking conversion.  The 
 13.31  conversion must occur at the beginning of an academic year. 
 13.32     Subd. 5.  [CONTRACT.] The sponsor's authorization for a 
 13.33  charter school shall must be in the form of a written contract 
 13.34  signed by the sponsor and the board of directors of the charter 
 13.35  school.  The contract for a charter school shall must be in 
 13.36  writing and contain at least the following: 
 14.1      (1) a description of a program that carries out one or more 
 14.2   of the purposes in subdivision 1; 
 14.3      (2) specific outcomes pupils are to achieve under 
 14.4   subdivision 10; 
 14.5      (3) admission policies and procedures; 
 14.6      (4) management and administration of the school; 
 14.7      (5) requirements and procedures for program and financial 
 14.8   audits; 
 14.9      (6) how the school will comply with subdivisions 8, 13, 15, 
 14.10  and 21; 
 14.11     (7) assumption of liability by the charter school; 
 14.12     (8) types and amounts of insurance coverage to be obtained 
 14.13  by the charter school; and 
 14.14     (9) the term of the contract, which may be up to three 
 14.15  years. 
 14.16     Subd. 7.  [PUBLIC STATUS; EXEMPTION FROM STATUTES AND 
 14.17  RULES.] A charter school is a public school and is part of the 
 14.18  state's system of public education.  Except as provided in this 
 14.19  section, a charter school is exempt from all statutes and rules 
 14.20  applicable to a school, a school board, or a school district, 
 14.21  although it may elect to comply with one or more provisions of 
 14.22  statutes or rules. 
 14.23     Subd. 8.  [REQUIREMENTS.] (a) A charter school shall meet 
 14.24  all applicable state and local health and safety requirements. 
 14.25     (b) The school must be located in the sponsoring district, 
 14.26  unless another school board agrees to locate a charter school 
 14.27  sponsored by another district in its boundaries.  If a school 
 14.28  board denies a request to locate within its boundaries a charter 
 14.29  school sponsored by another district, the sponsoring district 
 14.30  may appeal to the state board of education.  If the state board 
 14.31  authorizes the school, the state board shall must sponsor the 
 14.32  school. 
 14.33     (c) A charter school must be nonsectarian in its programs, 
 14.34  admission policies, employment practices, and all other 
 14.35  operations.  A sponsor may not authorize a charter school or 
 14.36  program that is affiliated with a nonpublic sectarian school or 
 15.1   a religious institution. 
 15.2      (d) Charter schools shall must not be used as a method of 
 15.3   providing education or generating revenue for students who are 
 15.4   being home schooled. 
 15.5      (e) The primary focus of a charter school must be to 
 15.6   provide a comprehensive program of instruction for at least one 
 15.7   grade or age group from five through 18 years of age.  
 15.8   Instruction may be provided to people younger than five years 
 15.9   and older than 18 years of age. 
 15.10     (f) A charter school may not charge tuition. 
 15.11     (g) A charter school is subject to and shall must comply 
 15.12  with chapter 363 and section 126.21. 
 15.13     (h) A charter school is subject to and shall must comply 
 15.14  with the pupil fair dismissal act, sections 127.26 to 127.39, 
 15.15  and the Minnesota public school fee law, sections 120.71 to 
 15.16  120.76. 
 15.17     (i) A charter school is subject to the same financial 
 15.18  audits, audit procedures, and audit requirements as a school 
 15.19  district.  The audit must be consistent with the requirements of 
 15.20  sections 121.904 to 121.917, except to the extent deviations are 
 15.21  necessary because of the program at the school.  The department 
 15.22  of children, families, and learning, state auditor, or 
 15.23  legislative auditor may conduct financial, program, or 
 15.24  compliance audits. 
 15.25     (j) A charter school is a school district for the purposes 
 15.26  of tort liability under chapter 466. 
 15.27     Subd. 9.  [ADMISSION REQUIREMENTS.] A charter school may 
 15.28  limit admission to: 
 15.29     (1) pupils within an age group or grade level; 
 15.30     (2) people who are eligible to participate in the 
 15.31  graduation incentives program under section 126.22; or 
 15.32     (3) residents of a specific geographic area where the 
 15.33  percentage of the population of non-Caucasian people of that 
 15.34  area is greater than the percentage of the non-Caucasian 
 15.35  population in the congressional district in which the geographic 
 15.36  area is located, and as long as the school reflects the racial 
 16.1   and ethnic diversity of the specific area. 
 16.2      A charter school shall enroll an eligible pupil who submits 
 16.3   a timely application, unless the number of applications exceeds 
 16.4   the capacity of a program, class, grade level, or building.  In 
 16.5   this case, pupils shall must be accepted by lot. 
 16.6      A charter school may not limit admission to pupils on the 
 16.7   basis of intellectual ability, measures of achievement or 
 16.8   aptitude, or athletic ability.  
 16.9      Subd. 10.  [PUPIL PERFORMANCE.] A charter school must 
 16.10  design its programs to at least meet the outcomes adopted by the 
 16.11  state board of education.  In the absence of state board 
 16.12  requirements, the school must meet the outcomes contained in the 
 16.13  contract with the sponsor.  The achievement levels of the 
 16.14  outcomes contained in the contract may exceed the achievement 
 16.15  levels of any outcomes adopted by the state board. 
 16.16     Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 
 16.17  charter school shall must employ or contract with necessary 
 16.18  teachers, as defined by section 125.03, subdivision 1, who hold 
 16.19  valid licenses to perform the particular service for which they 
 16.20  are employed in the school.  The school may employ necessary 
 16.21  employees who are not required to hold teaching licenses to 
 16.22  perform duties other than teaching and may contract for other 
 16.23  services.  The school may discharge teachers and nonlicensed 
 16.24  employees. 
 16.25     The board of directors also shall decide matters related to 
 16.26  the operation of the school, including budgeting, curriculum and 
 16.27  operating procedures. 
 16.28     Subd. 12.  [PUPILS WITH A DISABILITY.] A charter school 
 16.29  must comply with sections 120.03 and 120.17 and rules relating 
 16.30  to the education of pupils with a disability as though it were a 
 16.31  school district. 
 16.32     Subd. 13.  [LENGTH OF SCHOOL YEAR.] A charter school 
 16.33  shall must provide instruction each year for at least the number 
 16.34  of days required by section 120.101, subdivision 5.  It may 
 16.35  provide instruction throughout the year according to sections 
 16.36  120.59 to 120.67 or 121.585. 
 17.1      Subd. 14.  [REPORTS.] A charter school must report at least 
 17.2   annually to its sponsor and the state board of education the 
 17.3   information required by the sponsor or the state board.  The 
 17.4   reports are public data under chapter 13. 
 17.5      Subd. 15.  [TRANSPORTATION.] (a) By July 1 of each year, a 
 17.6   charter school shall must notify the district in which the 
 17.7   school is located and the department of children, families, and 
 17.8   learning if it will provide transportation for pupils enrolled 
 17.9   at in the school for the fiscal year. 
 17.10     (b) If a charter school elects to provide transportation 
 17.11  for pupils, the transportation shall must be provided by the 
 17.12  charter school within the district in which the charter school 
 17.13  is located.  The state shall must pay transportation aid to the 
 17.14  charter school according to section 124.248, subdivision 1a. 
 17.15     For pupils who reside outside the district in which the 
 17.16  charter school is located, the charter school is not required to 
 17.17  provide or pay for transportation between the pupil's residence 
 17.18  and the border of the district in which the charter school is 
 17.19  located.  A parent may be reimbursed by the charter school for 
 17.20  costs of transportation from the pupil's residence to the border 
 17.21  of the district in which the charter school is located if the 
 17.22  pupil is from a family whose income is at or below the poverty 
 17.23  level, as determined by the federal government.  The 
 17.24  reimbursement may not exceed the pupil's actual cost of 
 17.25  transportation or 15 cents per mile traveled, whichever is 
 17.26  less.  Reimbursement may not be paid for more than 250 miles per 
 17.27  week.  
 17.28     At the time a pupil enrolls in a charter school, the 
 17.29  charter school shall must provide the parent or guardian with 
 17.30  information regarding the transportation.  
 17.31     (c) If a charter school does not elect to provide 
 17.32  transportation, transportation for pupils enrolled at the school 
 17.33  shall must be provided by the district in which the school is 
 17.34  located, according to sections 120.062, subdivision 9, and 
 17.35  123.39, subdivision 6, for a pupil residing in the same district 
 17.36  in which the charter school is located.  Transportation may be 
 18.1   provided by the district in which the school is located, 
 18.2   according to sections 120.062, subdivision 9, and 123.39, 
 18.3   subdivision 6, for a pupil residing in a different district. 
 18.4      Subd. 16.  [LEASED SPACE.] A charter school may lease space 
 18.5   from a board eligible to be a sponsor or other public or private 
 18.6   nonprofit nonsectarian organization.  If a charter school is 
 18.7   unable to lease appropriate space from an eligible board or 
 18.8   other public or private nonprofit nonsectarian organization, the 
 18.9   school may lease space from another nonsectarian organization if 
 18.10  the department of children, families, and learning, in 
 18.11  consultation with the department of administration, approves the 
 18.12  lease.  If the school is unable to lease appropriate space from 
 18.13  public or private nonsectarian organizations, the school may 
 18.14  lease space from a sectarian organization if the leased space is 
 18.15  constructed as a school facility and the department of children, 
 18.16  families, and learning, in consultation with the department of 
 18.17  administration, approves the lease. 
 18.18     Subd. 17.  [INITIAL COSTS.] A sponsor may authorize a 
 18.19  charter school before the applicant has secured its space, 
 18.20  equipment, facilities, and personnel if the applicant indicates 
 18.21  the authority is necessary for it to raise working capital.  A 
 18.22  sponsor may not authorize a school before the state board of 
 18.23  education has approved the authorization. 
 18.24     Subd. 18.  [DISSEMINATE INFORMATION.] The sponsor, the 
 18.25  operators, and the department of children, families, and 
 18.26  learning must disseminate information to the public on how to 
 18.27  form and operate a charter school and how to utilize the 
 18.28  offerings of a charter school.  Particular groups to be targeted 
 18.29  include low-income families and communities, and students of 
 18.30  color. 
 18.31     Subd. 19.  [LEAVE TO TEACH IN A CHARTER SCHOOL.] If a 
 18.32  teacher employed by a school district makes a written request 
 18.33  for an extended leave of absence to teach at a charter school, 
 18.34  the school district must grant the leave.  The school district 
 18.35  must grant a leave for any number of years requested by the 
 18.36  teacher, and must extend the leave at the teacher's request.  
 19.1   The school district may require that the request for a leave or 
 19.2   extension of leave be made up to 90 days before the teacher 
 19.3   would otherwise have to report for duty.  Except as otherwise 
 19.4   provided in this subdivision and except for section 125.60, 
 19.5   subdivision 6a, the leave is governed by section 125.60, 
 19.6   including, but not limited to, reinstatement, notice of 
 19.7   intention to return, seniority, salary, and insurance. 
 19.8      During a leave, the teacher may continue to aggregate 
 19.9   benefits and credits in the teachers' retirement association 
 19.10  account by paying both the employer and employee contributions 
 19.11  based upon the annual salary of the teacher for the last full 
 19.12  pay period before the leave began.  The retirement association 
 19.13  may impose reasonable requirements to efficiently administer 
 19.14  this subdivision. 
 19.15     Subd. 20.  [COLLECTIVE BARGAINING.] Employees of the board 
 19.16  of directors of a charter school may, if otherwise eligible, 
 19.17  organize under chapter 179A and comply with its provisions.  The 
 19.18  board of directors of a charter school is a public employer, for 
 19.19  the purposes of chapter 179A, upon formation of one or more 
 19.20  bargaining units at the school.  Bargaining units at the 
 19.21  school shall must be separate from any other units within the 
 19.22  sponsoring district, except that bargaining units may remain 
 19.23  part of the appropriate unit within the sponsoring district, if 
 19.24  the employees of the school, the board of directors of the 
 19.25  school, the exclusive representative of the appropriate unit in 
 19.26  the sponsoring district, and the board of the sponsoring 
 19.27  district agree to include the employees in the appropriate unit 
 19.28  of the sponsoring district. 
 19.29     Subd. 20a.  [TEACHERS RETIREMENT.] Teachers in a charter 
 19.30  school shall must be public school teachers for the purposes of 
 19.31  chapters 354 and 354a. 
 19.32     Subd. 21.  [CAUSES FOR NONRENEWAL OR TERMINATION.] (a) The 
 19.33  duration of the contract with a sponsor shall must be for the 
 19.34  term contained in the contract according to subdivision 5.  The 
 19.35  sponsor may or may not renew a contract at the end of the term 
 19.36  for any ground listed in paragraph (b).  A sponsor may 
 20.1   unilaterally terminate a contract during the term of the 
 20.2   contract for any ground listed in paragraph (b).  At least 60 
 20.3   days before not renewing or terminating a contract, the sponsor 
 20.4   shall notify the board of directors of the charter school of the 
 20.5   proposed action in writing.  The notice shall state the grounds 
 20.6   for the proposed action in reasonable detail and that the 
 20.7   charter school's board of directors may request in writing an 
 20.8   informal hearing before the sponsor within 14 days of receiving 
 20.9   notice of nonrenewal or termination of the contract.  Failure by 
 20.10  the board of directors to make a written request for a hearing 
 20.11  within the 14-day period shall be treated as acquiescence to the 
 20.12  proposed action.  Upon receiving a timely written request for a 
 20.13  hearing, the sponsor shall give reasonable notice to the charter 
 20.14  school's board of directors of the hearing date.  The sponsor 
 20.15  shall conduct an informal hearing before taking final action.  
 20.16  The sponsor shall take final action to renew or not renew a 
 20.17  contract by the last day of classes in the school year.  If the 
 20.18  sponsor is a local school board, the school's board of directors 
 20.19  may appeal the sponsor's decision to the state board of 
 20.20  education.  
 20.21     (b) A contract may be terminated or not renewed upon any of 
 20.22  the following grounds: 
 20.23     (1) failure to meet the requirements for pupil performance 
 20.24  contained in the contract; 
 20.25     (2) failure to meet generally accepted standards of fiscal 
 20.26  management; 
 20.27     (3) for violations of law; or 
 20.28     (4) other good cause shown. 
 20.29     If a contract is terminated or not renewed, the school 
 20.30  shall must be dissolved according to the applicable provisions 
 20.31  of chapter 308A or 317A. 
 20.32     Subd. 22.  [PUPIL ENROLLMENT.] If a contract is not renewed 
 20.33  or is terminated according to subdivision 21, a pupil who 
 20.34  attended the school, siblings of the pupil, or another pupil who 
 20.35  resides in the same place as the pupil may enroll in the 
 20.36  resident district or may submit an application to a nonresident 
 21.1   district according to section 120.062 at any time.  Applications 
 21.2   and notices required by section 120.062 shall must be processed 
 21.3   and provided in a prompt manner.  The application and notice 
 21.4   deadlines in section 120.062 do not apply under these 
 21.5   circumstances. 
 21.6      Subd. 23.  [GENERAL AUTHORITY.] The board of directors of a 
 21.7   charter school may sue and be sued.  The board may not levy 
 21.8   taxes or issue bonds.  
 21.9      Subd. 24.  [IMMUNITY.] The state board of education, 
 21.10  members of the state board, a sponsor, members of the board of a 
 21.11  sponsor in their official capacity, and employees of a sponsor 
 21.12  are immune from civil or criminal liability with respect to all 
 21.13  activities related to a charter school they approve or sponsor.  
 21.14  The board of directors shall obtain at least the amount of and 
 21.15  types of insurance required by the contract, according to 
 21.16  subdivision 5. 
 21.17     Sec. 11.  Minnesota Statutes 1996, section 120.075, is 
 21.18  amended to read: 
 21.19     120.075 [ATTENDANCE; PREVIOUS ENROLLMENT; FAMILIES.] 
 21.20     Subdivision 1.  [PREVIOUS ENROLLMENT.] Any pupil who, 
 21.21  pursuant to the provisions of Minnesota Statutes 1976, section 
 21.22  120.065, or Minnesota Statutes, 1977 Supplement, section 123.39, 
 21.23  subdivision 5a, was enrolled on either January 1, 1978, or April 
 21.24  5, 1978, in a school district of which the pupil was not a 
 21.25  resident may continue in enrollment in that district. 
 21.26     Subd. 1a.  [CONTINUOUS ENROLLMENT.] Any pupil who, pursuant 
 21.27  to section 123.39, subdivision 5, has continuously been enrolled 
 21.28  since January 1, 1977, in a school district of which the pupil 
 21.29  was not a resident may continue in enrollment in that district. 
 21.30     Subd. 2.  [UNDER SCHOOL AGE.] Any child who was under 
 21.31  school age on either January 1, 1978, or April 5, 1978, but who 
 21.32  otherwise would have qualified pursuant to the provisions of 
 21.33  Minnesota Statutes 1976, section 120.065, or Minnesota Statutes, 
 21.34  1977 Supplement, section 123.39, subdivision 5a, for enrollment 
 21.35  in a school district of which the child was not a resident may 
 21.36  enroll in that district. 
 22.1      Subd. 3.  [NONPUBLIC SCHOOL.] Any pupil enrolled on either 
 22.2   January 1, 1978, or April 5, 1978, in a nonpublic school, as 
 22.3   defined in section 123.932, subdivision 3, located in a district 
 22.4   of which the pupil was not a resident who would otherwise have 
 22.5   qualified for enrollment in that district as a resident pursuant 
 22.6   to subdivision 1 may attend the public schools of that district. 
 22.7      Subd. 3a.  [ADOPTED CHILD.] Any child who was born on or 
 22.8   before January 1, 1978 but who was adopted after January 1, 1978 
 22.9   and whose adoptive parent on January 1, 1978 owned property 
 22.10  residence upon which would have qualified the child for 
 22.11  enrollment pursuant to Minnesota Statutes 1976, section 120.065, 
 22.12  in a school district of which the child was not a resident may 
 22.13  enroll in that district.  Any child who was born on or before 
 22.14  January 1, 1978 but who was adopted after January 1, 1978 and 
 22.15  whose adoptive parent on January 1, 1978 owned or was a tenant 
 22.16  upon property so as to qualify a child for enrollment pursuant 
 22.17  to Minnesota Statutes, 1977 Supplement, section 123.39, 
 22.18  subdivision 5a, in a school district of which the child was not 
 22.19  a resident may enroll in that district.  
 22.20     Subd. 4.  [SIBLING OF QUALIFIED PUPIL.] Subdivisions 1, 1a, 
 22.21  2, 3 and 3a shall also apply to any brother or sister of a 
 22.22  qualified pupil who is related to that pupil by blood, adoption, 
 22.23  or marriage and to any foster child of that pupil's parents.  
 22.24  The enrollment of any pupil pursuant to subdivision 1, 2, 3 or 
 22.25  3a and of a brother or sister of that pupil or of a foster child 
 22.26  of that pupil's parents pursuant to this subdivision shall must 
 22.27  remain subject to the provisions of Minnesota Statutes 1976, 
 22.28  section 120.065 and Minnesota Statutes, 1977 Supplement, section 
 22.29  123.39, subdivision 5a, as they read on January 1, 1978. 
 22.30     Subd. 5.  [AID.] General education aid, capital expenditure 
 22.31  facilities aid, capital expenditure equipment aid, and 
 22.32  transportation aid attributable to pupils covered by programs 
 22.33  under this section must be paid according to sections 124A.036, 
 22.34  subdivision 5, 124.245, subdivision 6, and 124.225, subdivision 
 22.35  8l. 
 22.36     Sec. 12.  Minnesota Statutes 1996, section 120.0751, is 
 23.1   amended to read: 
 23.2      120.0751 [COMMISSIONER OF CHILDREN, FAMILIES, AND LEARNING; 
 23.3   ENROLLMENT EXCEPTIONS.] 
 23.4      Subdivision 1.  [COMMISSIONER MAY PERMIT ENROLLMENT.] The 
 23.5   commissioner may permit a pupil to enroll in a school district 
 23.6   of which the pupil is not a resident under this section.  
 23.7      Subd. 2.  [APPLICATION TO THE COMMISSIONER.] The pupil or 
 23.8   the pupil's parent or guardian shall must make application to 
 23.9   the commissioner, explaining the particular circumstances which 
 23.10  that make the nonresident district the appropriate district of 
 23.11  attendance for the pupil.  The application must be signed by the 
 23.12  pupil's parent or guardian and the superintendent of the 
 23.13  nonresident district.  
 23.14     Subd. 3.  [CRITERIA FOR APPROVAL.] In approving or 
 23.15  disapproving the application the commissioner shall must 
 23.16  consider the following:  
 23.17     (a) if the circumstances of the pupil are similar or 
 23.18  analogous to the exceptions permitted by section 120.075, 
 23.19  whether attending school in the district of residence creates a 
 23.20  particular hardship for the pupil; or 
 23.21     (b) if the pupil has been continuously enrolled for at 
 23.22  least two years in a district of which the pupil was not a 
 23.23  resident because of an error made in good faith about the actual 
 23.24  district of residence, whether attending school in the district 
 23.25  of residence creates a particular hardship for the pupil.  If 
 23.26  the commissioner finds that a good faith error was made and that 
 23.27  attending school in the district of residence would create a 
 23.28  particular hardship for the siblings of that pupil or foster 
 23.29  children of that pupil's parents, the commissioner may 
 23.30  separately approve an application for any or all of the siblings 
 23.31  of the pupil who are related by blood, adoption, or marriage and 
 23.32  for foster children of the pupil's parents.  
 23.33     Subd. 4.  [DECISION DEADLINE.] The commissioner shall must 
 23.34  render its decision in each case within 60 days of receiving the 
 23.35  application in subdivision 2.  
 23.36     Subd. 5.  [FORMS.] The commissioner shall must provide the 
 24.1   forms required by subdivision 2 and shall must adopt the 
 24.2   procedures necessary to implement this section. 
 24.3      Subd. 6.  [AID.] General education aid, capital expenditure 
 24.4   facilities aid, capital expenditure equipment aid, and 
 24.5   transportation aid for pupils covered by programs under this 
 24.6   section must be paid according to sections 124A.036, subdivision 
 24.7   5, 124.245, subdivision 6, and 124.225, subdivision 8l.  
 24.8      Sec. 13.  Minnesota Statutes 1996, section 120.0752, is 
 24.9   amended to read: 
 24.10     120.0752 [AGREEMENTS BETWEEN SCHOOL BOARDS; ENROLLMENT 
 24.11  EXCEPTIONS.] 
 24.12     Subdivision 1.  [ENROLLMENT EXCEPTION.] A pupil may enroll 
 24.13  in a school district of which the pupil is not a resident under 
 24.14  this section.  
 24.15     Subd. 2.  [BOARD APPROVAL.] The pupil's parent or guardian 
 24.16  must receive the approval of the school board of the nonresident 
 24.17  district and the school board of the resident district.  The 
 24.18  nonresident school board shall notify the resident school board 
 24.19  of the approval.  
 24.20     Subd. 3.  [11TH AND 12TH GRADE STUDENTS.] Notwithstanding 
 24.21  subdivision 2, an 11th or 12th grade pupil who has been enrolled 
 24.22  in a district and whose parent or guardian moves to another 
 24.23  district, may continue to enroll in the nonresident district 
 24.24  upon the approval of the school board of the nonresident 
 24.25  district.  The approval of the school board of the pupil's 
 24.26  resident district is not required.  
 24.27     Subd. 4.  [AID.] General education aid, capital expenditure 
 24.28  facilities aid, capital expenditure equipment aid, and 
 24.29  transportation aid for pupils covered by programs under this 
 24.30  section must be paid according to sections 124A.036, subdivision 
 24.31  5, 124.245, subdivision 6, and 124.225, subdivision 8l. 
 24.32     Sec. 14.  Minnesota Statutes 1996, section 120.101, 
 24.33  subdivision 5, is amended to read: 
 24.34     Subd. 5.  [AGES AND TERMS.] For the 1988-1989 school year 
 24.35  and the school years thereafter, Every child between seven and 
 24.36  16 years of age shall must receive instruction for at least the 
 25.1   number of days each year required under subdivision 5b.  For the 
 25.2   2000-2001 school year and later school years, every child 
 25.3   between seven and 18 years of age shall receive instruction for 
 25.4   at least the number of days each year required under subdivision 
 25.5   5b.  Every child under the age of seven who is enrolled in a 
 25.6   half-day kindergarten, or a full-day kindergarten program on 
 25.7   alternate days, or other kindergarten programs shall receive 
 25.8   instruction at least equivalent to half of each day for the 
 25.9   number of days each year set out in subdivision 5b.  Except as 
 25.10  provided in subdivision 5a, a parent may withdraw a child under 
 25.11  the age of seven from enrollment at any time. 
 25.12     Sec. 15.  Minnesota Statutes 1996, section 120.101, 
 25.13  subdivision 5a, is amended to read: 
 25.14     Subd. 5a.  [CHILDREN UNDER SEVEN.] Once a pupil under the 
 25.15  age of seven is enrolled in kindergarten or a higher grade in a 
 25.16  public school, the pupil is subject to the compulsory attendance 
 25.17  provisions of this chapter and section 127.20, unless the school 
 25.18  board of the district in which the pupil is enrolled has a 
 25.19  policy that exempts children under seven from this subdivision. 
 25.20     In a school district in which children under seven are 
 25.21  subject to compulsory attendance under this subdivision, 
 25.22  paragraphs (a) to (c) apply. 
 25.23     (a) A parent or guardian may withdraw the pupil from 
 25.24  enrollment in the school for good cause by notifying the school 
 25.25  district.  Good cause includes, but is not limited to, 
 25.26  enrollment of the pupil in another school, as defined in 
 25.27  subdivision 4, or the immaturity of the child. 
 25.28     (b) When the pupil enrolls, the enrolling official must 
 25.29  provide the parent or guardian who enrolls the pupil with a 
 25.30  written explanation of the provisions of this subdivision. 
 25.31     (c) A pupil under the age of seven who is withdrawn from 
 25.32  enrollment in the public school under paragraph (a) is no longer 
 25.33  subject to the compulsory attendance provisions of this chapter. 
 25.34     In a school district that had adopted a policy to exempt 
 25.35  children under seven from this subdivision, the school 
 25.36  district's chief attendance officer must keep the truancy 
 26.1   enforcement authorities supplied with a copy of the school 
 26.2   board's current policy certified by the clerk of the school 
 26.3   board. 
 26.4      Sec. 16.  Minnesota Statutes 1996, section 120.101, 
 26.5   subdivision 5c, is amended to read: 
 26.6      Subd. 5c.  [EDUCATION RECORDS.] A school district from 
 26.7   which a student is transferring must transmit the student's 
 26.8   educational records, within ten business days of a request, to 
 26.9   the school district in which the student is enrolling.  School 
 26.10  Districts must make reasonable efforts to determine the school 
 26.11  district in which a transferring student is next enrolling in 
 26.12  order to comply with this subdivision. 
 26.13     Sec. 17.  Minnesota Statutes 1996, section 120.101, 
 26.14  subdivision 7, is amended to read: 
 26.15     Subd. 7.  [REQUIREMENTS FOR INSTRUCTORS.] A person who is 
 26.16  providing instruction to a child must meet at least one of the 
 26.17  following requirements:  
 26.18     (1) hold a valid Minnesota teaching license in the field 
 26.19  and for the grade level taught; 
 26.20     (2) be directly supervised by a person holding a valid 
 26.21  Minnesota teaching license; 
 26.22     (3) successfully complete a teacher competency examination; 
 26.23     (4) provide instruction in a school that is accredited by 
 26.24  an accrediting agency, recognized according to section 123.935, 
 26.25  subdivision 7, or recognized by the state board of education; 
 26.26     (5) hold a baccalaureate degree; or 
 26.27     (6) be the parent of a child who is assessed according to 
 26.28  the procedures in subdivision 8.  
 26.29     Any person providing instruction in a public school must 
 26.30  meet the requirements of clause (1). 
 26.31     Sec. 18.  Minnesota Statutes 1996, section 120.101, 
 26.32  subdivision 8, is amended to read: 
 26.33     Subd. 8.  [ASSESSMENT OF PERFORMANCE.] (a) Each year the 
 26.34  performance of every child who is not enrolled in a public 
 26.35  school must be assessed using a nationally norm-referenced 
 26.36  standardized achievement examination.  The superintendent of the 
 27.1   district in which the child receives instruction and the person 
 27.2   in charge of the child's instruction must agree about the 
 27.3   specific examination to be used and the administration and 
 27.4   location of the examination.  
 27.5      (b) To the extent the examination in paragraph (a) does not 
 27.6   provide assessment in all of the subject areas in subdivision 6, 
 27.7   the parent must assess the child's performance in the applicable 
 27.8   subject area.  This requirement applies only to a parent who 
 27.9   provides instruction and does not meet the requirements of 
 27.10  subdivision 7, clause (1), (2), or (3).  
 27.11     (c) If the results of the assessments in paragraphs (a) and 
 27.12  (b) indicate that the child's performance on the total battery 
 27.13  score is at or below the 30th percentile or one grade level 
 27.14  below the performance level for children of the same age, the 
 27.15  parent shall must obtain additional evaluation of the child's 
 27.16  abilities and performance for the purpose of determining whether 
 27.17  the child has learning problems.  
 27.18     (d) A child receiving instruction from a nonpublic school, 
 27.19  person, or institution that is accredited by an accrediting 
 27.20  agency, recognized according to section 123.935, subdivision 7, 
 27.21  or recognized by the state board of education, is exempt from 
 27.22  the requirements of this subdivision.  
 27.23     Sec. 19.  Minnesota Statutes 1996, section 120.101, 
 27.24  subdivision 9, is amended to read: 
 27.25     Subd. 9.  [LEGITIMATE EXEMPTIONS.] A parent, guardian, or 
 27.26  other person having control of a child may apply to a school 
 27.27  district to have the child excused from attendance for the whole 
 27.28  or any part of the time school is in session during any school 
 27.29  year.  Application may be made to any member of the board, a 
 27.30  truant officer, a principal, or the superintendent.  The school 
 27.31  board of the district in which the child resides may approve the 
 27.32  application upon the following being demonstrated to the 
 27.33  satisfaction of that board: 
 27.34     (1) That the child's bodily or mental condition is such as 
 27.35  to prevent attendance at school or application to study for the 
 27.36  period required; or 
 28.1      (2) That for the school years 1988-1989 through 1999-2000 
 28.2   the child has already completed the studies ordinarily required 
 28.3   in the 10th grade and that for the school years beginning with 
 28.4   the 2000-2001 school year the child has already completed the 
 28.5   studies ordinarily required to graduate from high school; or 
 28.6      (3) That it is the wish of the parent, guardian, or other 
 28.7   person having control of the child, that the child attend for a 
 28.8   period or periods not exceeding in the aggregate three hours in 
 28.9   any week, a school for religious instruction conducted and 
 28.10  maintained by some church, or association of churches, or any 
 28.11  Sunday school association incorporated under the laws of this 
 28.12  state, or any auxiliary thereof.  This school for religious 
 28.13  instruction shall must be conducted and maintained in a place 
 28.14  other than a public school building, and in no event it must 
 28.15  not, in whole or in part, shall be conducted and maintained at 
 28.16  public expense.  However, a child may be absent from school on 
 28.17  such days as the child attends upon instruction according to the 
 28.18  ordinances of some church. 
 28.19     Sec. 20.  Minnesota Statutes 1996, section 120.101, 
 28.20  subdivision 10, is amended to read: 
 28.21     Subd. 10.  [ISSUING AND REPORTING EXCUSES.] The clerk or 
 28.22  any authorized officer of the school board shall must issue and 
 28.23  keep a record of such excuses, under such rules as the board may 
 28.24  from time to time establish. 
 28.25     Sec. 21.  Minnesota Statutes 1996, section 120.102, is 
 28.26  amended to read: 
 28.27     120.102 [REPORTING.] 
 28.28     Subdivision 1.  [REPORTS TO SUPERINTENDENT.] The person in 
 28.29  charge of providing instruction to a child shall must submit the 
 28.30  following information to the superintendent of the district in 
 28.31  which the child resides: 
 28.32     (1) by October 1 of each school year, the name, age, and 
 28.33  address of each child receiving instruction; 
 28.34     (2) the name of each instructor and evidence of compliance 
 28.35  with one of the requirements specified in section 120.101, 
 28.36  subdivision 7; 
 29.1      (3) an annual instructional calendar showing that 
 29.2   instruction will occur on at least the number of days required 
 29.3   under section 120.101, subdivision 5b; and 
 29.4      (4) for each child instructed by a parent who meets only 
 29.5   the requirement of section 120.101, subdivision 7, clause (6), a 
 29.6   quarterly report card on the achievement of the child in each 
 29.7   subject area required in section 120.101, subdivision 6. 
 29.8      Subd. 2.  [AVAILABILITY OF DOCUMENTATION.] The person in 
 29.9   charge of providing instruction to a child must make available 
 29.10  documentation indicating that the subjects required in section 
 29.11  120.101, subdivision 6, are being taught.  This documentation 
 29.12  must include class schedules, copies of materials used for 
 29.13  instruction, and descriptions of methods used to assess student 
 29.14  achievement. 
 29.15     Subd. 3.  [EXEMPTIONS.] A nonpublic school, person, or 
 29.16  other institution that is accredited by an accrediting agency, 
 29.17  recognized according to section 123.935, or recognized by the 
 29.18  state board of education, is exempt from the requirements in 
 29.19  subdivisions 1 and 2, except for the requirement in subdivision 
 29.20  1, clause (1). 
 29.21     Subd. 4.  [REPORTS TO THE STATE.] A superintendent 
 29.22  shall must make an annual report to the commissioner of 
 29.23  children, families, and learning.  The report must include the 
 29.24  following information: 
 29.25     (1) the number of children residing in the district 
 29.26  attending nonpublic schools or receiving instruction from 
 29.27  persons or institutions other than a public school; 
 29.28     (2) the number of children in clause (1) who are in 
 29.29  compliance with section 120.101 and this section; and 
 29.30     (3) the names, ages, and addresses of children whom the 
 29.31  superintendent has determined are not in compliance with section 
 29.32  120.101 and this section.  
 29.33     Sec. 22.  Minnesota Statutes 1996, section 120.103, 
 29.34  subdivision 3, is amended to read: 
 29.35     Subd. 3.  [NOTICE TO PARENTS.] The superintendent shall 
 29.36  must notify the parent, in writing, if a child is alleged to be 
 30.1   receiving instruction in violation of sections 120.101 and 
 30.2   120.102.  The written notification shall must include a list of 
 30.3   the specific alleged violations. 
 30.4      Sec. 23.  Minnesota Statutes 1996, section 120.103, 
 30.5   subdivision 4, is amended to read: 
 30.6      Subd. 4.  [FACT-FINDING AND MEDIATION.] If the specified 
 30.7   alleged violations of the compulsory attendance requirements are 
 30.8   not corrected within 15 days of receipt of the written 
 30.9   notification, the superintendent shall must request fact-finding 
 30.10  and mediation services from the commissioner of children, 
 30.11  families, and learning. 
 30.12     Sec. 24.  Minnesota Statutes 1996, section 120.103, 
 30.13  subdivision 5, is amended to read: 
 30.14     Subd. 5.  [NOTICE TO COUNTY ATTORNEY.] If the alleged 
 30.15  violations are not corrected through the fact-finding and 
 30.16  mediation process under subdivision 4, the superintendent shall 
 30.17  must notify the county attorney of the alleged violations.  The 
 30.18  superintendent shall must notify the parents, by certified mail, 
 30.19  of the superintendent's intent to notify the county attorney of 
 30.20  the alleged violations. 
 30.21     Sec. 25.  Minnesota Statutes 1996, section 120.103, 
 30.22  subdivision 6, is amended to read: 
 30.23     Subd. 6.  [CRIMINAL COMPLAINT; PROSECUTION.] The county 
 30.24  attorney in the county in which the alleged violations have 
 30.25  occurred has jurisdiction to conduct a prosecution for 
 30.26  violations of section 120.101, 120.102, or 120.103.  A criminal 
 30.27  complaint may be filed in any court in the county exercising 
 30.28  criminal jurisdiction and shall must name the persons neglecting 
 30.29  or refusing to comply with section 120.101, 120.102, or 120.103. 
 30.30  After the complaint has been filed, a warrant shall must be 
 30.31  issued and proceedings in trial shall must commence as provided 
 30.32  by law in misdemeanor cases.  
 30.33     Sec. 26.  Minnesota Statutes 1996, section 120.105, is 
 30.34  amended to read: 
 30.35     120.105 [EDUCATION STATEMENT.] 
 30.36     Each year every school, as defined in section 120.101, 
 31.1   subdivision 4, offering a kindergarten program must ensure that 
 31.2   the school principal, kindergarten teacher, or other 
 31.3   professional, discusses and distributes the following statement 
 31.4   to every parent, guardian, or other person enrolling a child in 
 31.5   kindergarten:  
 31.6      "The state of Minnesota requires that every child entering 
 31.7   kindergarten this school year must graduate from high school or 
 31.8   remain in high school or in an alternative program until age 
 31.9   18.  Only those who have been accepted in the military or an 
 31.10  institution of higher learning can leave school before they are 
 31.11  18 years old."  
 31.12     The department of children, families, and learning must 
 31.13  make appropriate provisions to accommodate those children who 
 31.14  newly enroll in a public school after kindergarten.  All other 
 31.15  schools must make similar provisions.  
 31.16     Sec. 27.  Minnesota Statutes 1996, section 120.11, is 
 31.17  amended to read: 
 31.18     120.11 [SCHOOL BOARDS AND TEACHERS, DUTIES.] 
 31.19     It shall be is the duty of each board through its clerk or 
 31.20  other authorized agent or employee, to report the names of 
 31.21  children required to attend school, with excuses, if any, 
 31.22  granted in such the district, to the superintendent or 
 31.23  principals thereof of the district, within the first week of 
 31.24  school.  Subsequent excuses granted shall must be forthwith 
 31.25  reported in the same manner.  The clerk or principal shall must 
 31.26  provide the teachers in the several schools supervised, with the 
 31.27  necessary information for the respective grades of school, 
 31.28  relating to the list of pupils with excuses granted.  On receipt 
 31.29  of the list of such pupils of school age and the excuses granted 
 31.30  Within five days after receiving the report, the clerk or 
 31.31  principals shall must report the names of children not excused, 
 31.32  who are not attending school, with the names and addresses of 
 31.33  their parents, to the district superintendent within five days 
 31.34  after receiving the report.  
 31.35     Sec. 28.  Minnesota Statutes 1996, section 120.14, is 
 31.36  amended to read: 
 32.1      120.14 [ATTENDANCE OFFICERS.] 
 32.2      The board of any district may authorize the employment of 
 32.3   attendance officers, who shall must investigate truancy or 
 32.4   nonattendance at school, make complaints, serve notice and 
 32.5   process, and attend to the enforcement of all laws and district 
 32.6   rules regarding school attendance.  When any attendance officer 
 32.7   learns of any case of habitual truancy or continued 
 32.8   nonattendance of any child required to attend school the officer 
 32.9   shall must immediately notify the person having control of such 
 32.10  the child to forthwith send to and keep the child in school.  
 32.11  The attendance officer shall must also refer a habitual truant 
 32.12  child as defined in section 260.015, subdivision 19, and the 
 32.13  child's parent or legal guardian to appropriate services and 
 32.14  procedures under chapter 260A, if available within the school 
 32.15  district.  Attendance officers or other designated school 
 32.16  officials shall must ensure that the notice required by section 
 32.17  260A.03 for a child who is a continuing truant is sent.  The 
 32.18  officer shall must act under the general supervision of 
 32.19  the district superintendent. 
 32.20     Sec. 29.  [120.151] [OFFICERS, TEACHERS; NEGLECT OF DUTY; 
 32.21  PENALTY.] 
 32.22     Any school officer, truant officer, public or nonpublic 
 32.23  school teacher, principal, district superintendent, or person 
 32.24  providing instruction other than a parent refusing, willfully 
 32.25  failing, or neglecting to perform any duty imposed by sections 
 32.26  120.101 to 120.14 is guilty of a misdemeanor.  All persons found 
 32.27  guilty shall be punished for each offense by a fine of not more 
 32.28  than $10 or by imprisonment for not more than ten days.  All 
 32.29  fines, when collected, shall be paid into the county treasury 
 32.30  for the benefit of the school district in which the offense is 
 32.31  committed. 
 32.32     Sec. 30.  [120.152] [VIOLATIONS; PENALTIES.] 
 32.33     Any person who fails or refuses to provide for instruction 
 32.34  of a child of whom the person has legal custody, and who is 
 32.35  required by section 120.101, subdivision 5, to receive 
 32.36  instruction, when notified so to do by a truant officer or other 
 33.1   official, or any person who induces or attempts to induce any 
 33.2   such child unlawfully to be absent from school, or who knowingly 
 33.3   harbors or employs, while school is in session, any child 
 33.4   unlawfully absent from school, shall be guilty of a 
 33.5   misdemeanor.  Any fines collected shall be paid into the county 
 33.6   treasury for the benefit of the school district in which the 
 33.7   offense is committed. 
 33.8      Sec. 31.  [120.723] [SCHOOL LUNCH PROGRAM, REVOLVING FUND.] 
 33.9      The commissioner of finance shall establish for the state 
 33.10  board a revolving fund for deposit of storage and handling 
 33.11  charges paid by recipients of donated foods shipped by the 
 33.12  school lunch section of the department of children, families, 
 33.13  and learning.  These funds are to be used only to pay storage 
 33.14  and related charges as they are incurred for United States 
 33.15  Department of Agriculture foods. 
 33.16     The commissioner of finance shall also establish a 
 33.17  revolving fund for the department of children, families, and 
 33.18  learning to deposit charges paid by recipients of processed 
 33.19  commodities and for any authorized appropriation transfers for 
 33.20  the purpose of this subdivision.  These funds are to be used 
 33.21  only to pay for commodity processing and related charges as they 
 33.22  are incurred using United States Department of Agriculture 
 33.23  donated commodities. 
 33.24     Sec. 32.  [120.725] [PART-TIME STUDENTS; FEES.] 
 33.25     Notwithstanding the provisions of sections 120.06 and 
 33.26  120.74, a board may charge a part-time student a reasonable fee 
 33.27  for a class or program.  
 33.28     Sec. 33.  Minnesota Statutes 1996, section 120.73, is 
 33.29  amended to read: 
 33.30     120.73 [AUTHORIZED FEES.] 
 33.31     Subdivision 1.  [AUTHORIZED FEES.] A school board is 
 33.32  authorized to require payment of fees in the following areas: 
 33.33     (a) in any program where the resultant product, in excess 
 33.34  of minimum requirements and at the pupil's option, becomes the 
 33.35  personal property of the pupil; 
 33.36     (b) admission fees or charges for extra curricular 
 34.1   activities, where attendance is optional; 
 34.2      (c) a security deposit for the return of materials, 
 34.3   supplies, or equipment; 
 34.4      (d) personal physical education and athletic equipment and 
 34.5   apparel, although any pupil may personally provide it if it 
 34.6   meets reasonable requirements and standards relating to health 
 34.7   and safety established by the school board; 
 34.8      (e) items of personal use or products which that a student 
 34.9   has an option to purchase such as student publications, class 
 34.10  rings, annuals, and graduation announcements; 
 34.11     (f) fees specifically permitted by any other statute, 
 34.12  including but not limited to section 171.04, subdivision 1, 
 34.13  clause (1); 
 34.14     (g) field trips considered supplementary to a district 
 34.15  educational program; 
 34.16     (h) any authorized voluntary student health and accident 
 34.17  benefit plan; 
 34.18     (i) for the use of musical instruments owned or rented by 
 34.19  the district, a reasonable rental fee not to exceed either the 
 34.20  rental cost to the district or the annual depreciation plus the 
 34.21  actual annual maintenance cost for each instrument; 
 34.22     (j) transportation of pupils to and from extra curricular 
 34.23  activities conducted at locations other than school, where 
 34.24  attendance is optional; 
 34.25     (k) transportation of pupils to and from school for which 
 34.26  aid for fiscal year 1996 is not authorized under Minnesota 
 34.27  Statutes 1994, section 124.223, subdivision 1, and for which 
 34.28  levy for fiscal year 1996 is not authorized under Minnesota 
 34.29  Statutes 1994, section 124.226, subdivision 5, if a district 
 34.30  charging fees for transportation of pupils establishes 
 34.31  guidelines for that transportation to ensure that no pupil is 
 34.32  denied transportation solely because of inability to pay; 
 34.33     (l) motorcycle classroom education courses conducted 
 34.34  outside of regular school hours; provided the charge shall must 
 34.35  not exceed the actual cost of these courses to the school 
 34.36  district; 
 35.1      (m) transportation to and from post-secondary institutions 
 35.2   for pupils enrolled under the post-secondary enrollment options 
 35.3   program under section 123.39, subdivision 16.  Fees collected 
 35.4   for this service must be reasonable and shall must be used to 
 35.5   reduce the cost of operating the route.  Families who qualify 
 35.6   for mileage reimbursement under section 123.3514, subdivision 8, 
 35.7   may use their state mileage reimbursement to pay this fee.  If 
 35.8   no fee is charged, districts shall must allocate costs based on 
 35.9   the number of pupils riding the route. 
 35.10     Subd. 2.  [SCHOOL SUPPLIES.] Students may be required to 
 35.11  furnish personal or consumable items including pencils, paper, 
 35.12  pens, erasers and notebooks. 
 35.13     Subd. 2a.  [TRANSPORTATION.] Students may be required to 
 35.14  furnish their own transportation to and from an instructional 
 35.15  community-based employment station which that is part of an 
 35.16  approved occupational experience secondary vocational program.  
 35.17  As an alternative, a school board may require the payment of 
 35.18  reasonable fees for transportation to and from these 
 35.19  instructional community-based employment stations. This 
 35.20  subdivision shall only be applied applies to students who 
 35.21  receive remuneration for their participation in these programs. 
 35.22     Subd. 2b.  [SCHOOL UNIFORMS.] Notwithstanding section 
 35.23  120.74, a school board may require students to furnish or 
 35.24  purchase clothing that constitutes a school uniform if the board 
 35.25  has adopted a uniform requirement or program for the student's 
 35.26  school.  In adopting a uniform requirement, the board shall 
 35.27  promote student, staff, parent, and community involvement in the 
 35.28  program and account for the financial ability of students to 
 35.29  purchase uniforms. 
 35.30     Subd. 3.  [SCHOOL STORE.] Sections 120.71 to 120.76 shall 
 35.31  may not preclude the operation of a school store wherein where 
 35.32  pupils may purchase school supplies and materials. 
 35.33     Subd. 4.  [BOARD MAY WAIVE FEE.] A school board may waive 
 35.34  any such deposit or fee if any pupil or the pupil's parent or 
 35.35  guardian is unable to pay it. 
 35.36     Sec. 34.  Minnesota Statutes 1996, section 120.74, is 
 36.1   amended to read: 
 36.2      120.74 [PROHIBITED FEES.] 
 36.3      Subdivision 1.  [PROHIBITED FEES.] (a) A school board is 
 36.4   not authorized to charge fees in the following areas: 
 36.5      (1) textbooks, workbooks, art materials, laboratory 
 36.6   supplies, towels; 
 36.7      (2) supplies necessary for participation in any 
 36.8   instructional course except as authorized in sections 120.73 and 
 36.9   120.75; 
 36.10     (3) field trips which that are required as a part of a 
 36.11  basic education program or course; 
 36.12     (4) graduation caps, gowns, any specific form of dress 
 36.13  necessary for any educational program, and diplomas; 
 36.14     (5) instructional costs for necessary school personnel 
 36.15  employed in any course or educational program required for 
 36.16  graduation; 
 36.17     (6) library books required to be utilized for any 
 36.18  educational course or program; 
 36.19     (7) admission fees, dues, or fees for any activity the 
 36.20  pupil is required to attend; 
 36.21     (8) any admission or examination cost for any required 
 36.22  educational course or program; 
 36.23     (9) locker rentals; 
 36.24     (10) transportation of pupils (i) for which state 
 36.25  transportation aid for fiscal year 1996 is authorized pursuant 
 36.26  to Minnesota Statutes 1994, section 124.223, or (ii) for which a 
 36.27  levy for fiscal year 1996 is authorized under Minnesota Statutes 
 36.28  1994, section 124.226, subdivision 5. 
 36.29     (b) Notwithstanding paragraph (a), clauses (1) and (6), a 
 36.30  school board may charge fees for textbooks, workbooks, and 
 36.31  library books, lost or destroyed by students.  The board must 
 36.32  annually notify parents or guardians and students about its 
 36.33  policy to charge a fee under this paragraph. 
 36.34     Subd. 2.  No pupil's rights or privileges, including the 
 36.35  receipt of grades or diplomas may be denied or abridged for 
 36.36  nonpayment of fees; but this provision shall does not prohibit a 
 37.1   school district from maintaining any action provided by law for 
 37.2   the collection of such fees authorized by sections 120.73 and 
 37.3   120.75. 
 37.4      Sec. 35.  Minnesota Statutes 1996, section 120.75, is 
 37.5   amended to read: 
 37.6      120.75 [HEARING.] 
 37.7      Subdivision 1.  [PUBLIC HEARING.] Prior to Before the 
 37.8   initiation of any fee not authorized or prohibited by sections 
 37.9   120.73 and 120.74, the local school board shall must hold a 
 37.10  public hearing within the district upon three weeks published 
 37.11  notice in the district's official newspaper, or such notice as 
 37.12  is otherwise required for a regular school board meeting given 
 37.13  three weeks prior to before the hearing on the proposed adoption 
 37.14  of the policy. 
 37.15     Sec. 36.  Minnesota Statutes 1996, section 120.76, is 
 37.16  amended to read: 
 37.17     120.76 [POST-SECONDARY INSTRUCTIONAL PROGRAMS.] 
 37.18     Sections 120.71 to 120.76 shall may not be construed to 
 37.19  prohibit a school board from charging reasonable fees for goods 
 37.20  and services provided in connection with any post-secondary 
 37.21  instructional program, including but not limited to vocational 
 37.22  technical, veteran farmer cooperative training, and community 
 37.23  education programs, and continuing education and evening school 
 37.24  programs other than those conducted pursuant to section 124.26.  
 37.25     Sec. 37. [120.79] [ADVANCED PLACEMENT AND INTERNATIONAL 
 37.26  BACCALAUREATE PROGRAMS.] 
 37.27     Subdivision 1.  [TRAINING PROGRAMS FOR TEACHERS.] A 
 37.28  secondary teacher assigned by a district to teach an advanced 
 37.29  placement or international baccalaureate course may participate 
 37.30  in a training program offered by the college board or 
 37.31  International Baccalaureate North America, Inc.  The state may 
 37.32  pay a portion of the tuition, room, and board costs a teacher 
 37.33  incurs in participating in a training program.  The commissioner 
 37.34  shall determine application procedures and deadlines, and select 
 37.35  teachers to participate in the training program.  The procedures 
 37.36  determined by the commissioner shall, to the extent possible, 
 38.1   ensure that advanced placement and international baccalaureate 
 38.2   courses become available in all parts of the state and that a 
 38.3   variety of course offerings are available in school districts.  
 38.4   This subdivision does not prevent teacher participation in 
 38.5   training programs offered by the college board or International 
 38.6   Baccalaureate North America, Inc., when tuition is paid by a 
 38.7   source other than the state. 
 38.8      Subd. 2.  [SUPPORT PROGRAMS.] The commissioner shall 
 38.9   provide support programs during the school year for teachers who 
 38.10  attended the training programs and teachers experienced in 
 38.11  teaching advanced placement or international baccalaureate 
 38.12  courses.  The support programs shall provide teachers with 
 38.13  opportunities to share instructional ideas with other teachers.  
 38.14  The state may pay the costs of participating in the support 
 38.15  programs, including substitute teachers, if necessary, and 
 38.16  program affiliation costs. 
 38.17     Subd. 3.  [SUBSIDY FOR EXAMINATION FEES.] The state may pay 
 38.18  all or part of the fee for advanced placement or international 
 38.19  baccalaureate examinations for pupils in public and nonpublic 
 38.20  schools.  The commissioner shall adopt a schedule for fee 
 38.21  subsidies that may allow payment of the entire fee for 
 38.22  low-income families, as defined by the commissioner.  The 
 38.23  commissioner may also determine the circumstances under which 
 38.24  the fee is subsidized, in whole or in part.  The commissioner 
 38.25  shall determine procedures for state payments of fees. 
 38.26     Subd. 4.  [INFORMATION.] The commissioner shall submit the 
 38.27  following information to the education committees of the 
 38.28  legislature each year by January 1: 
 38.29     (1) the number of pupils enrolled in advanced placement and 
 38.30  international baccalaureate courses in each school district; 
 38.31     (2) the number of teachers in each district attending 
 38.32  training programs offered by the college board or International 
 38.33  Baccalaureate North America, Inc.; 
 38.34     (3) the number of teachers in each district participating 
 38.35  in support programs; 
 38.36     (4) recent trends in the field of advanced placement and 
 39.1   international baccalaureate programs; 
 39.2      (5) expenditures for each category in this section; and 
 39.3      (6) other recommendations for the state program. 
 39.4      Sec. 38. [120.791] [SCHOOL BOARD POWERS; ENROLLMENT.] 
 39.5      Subdivision 1. [SECONDARY SCHOOL PROGRAMS.] The board may 
 39.6   permit a person who is over the age of 21 or who has graduated 
 39.7   from high school to enroll as a part-time student in a class or 
 39.8   program at a secondary school if there is space available.  In 
 39.9   determining if there is space available, full-time public school 
 39.10  students, shared-time students, and students returning to 
 39.11  complete a regular course of study shall be given priority over 
 39.12  part-time students seeking enrollment pursuant to this 
 39.13  subdivision.  The following are not prerequisites for enrollment:
 39.14     (a) residency in the school district; 
 39.15     (b) United States citizenship; or 
 39.16     (c) for a person over the age of 21, a high school diploma 
 39.17  or equivalency certificate.  A person may enroll in a class or 
 39.18  program even if that person attends evening school, an adult or 
 39.19  continuing education, or a post-secondary educational program or 
 39.20  institution.  
 39.21     Subd. 2.  [KINDERGARTEN.] The board may establish and 
 39.22  maintain one or more kindergartens for the instruction of 
 39.23  children.  After July 1, 1974, the board shall provide 
 39.24  kindergarten instruction for all eligible children, either in 
 39.25  the district or in another district.  All children to be 
 39.26  eligible for kindergarten must be at least five years of age on 
 39.27  September 1 of the calendar year in which the school year 
 39.28  commences.  In addition, all children selected under an early 
 39.29  admissions policy established by the board may be admitted.  
 39.30  Nothing in this section shall prohibit a district from 
 39.31  establishing head start, prekindergarten, or nursery school 
 39.32  classes for children below kindergarten age.  Any board with 
 39.33  evidence that providing kindergarten will cause an extraordinary 
 39.34  hardship on the district may apply to the commissioner for an 
 39.35  exception. 
 39.36     Sec. 39.  [120.792] [ADVANCED ACADEMIC CREDIT.] 
 40.1      A district must grant academic credit to a pupil attending 
 40.2   an accelerated or advanced academic course offered by a higher 
 40.3   education institution or a nonprofit public agency other than 
 40.4   the district, if the pupil successfully completes the course 
 40.5   attended and passes an examination approved by the district.  If 
 40.6   no comparable course is offered by the district, the 
 40.7   commissioner shall determine the number of credits which shall 
 40.8   be granted to a pupil who successfully completes and passes the 
 40.9   course.  If a comparable course is offered by the district, the 
 40.10  board must grant a comparable number of credits to the pupil.  
 40.11  If there is a dispute between the district and the pupil 
 40.12  regarding the number of credits granted for a particular course, 
 40.13  the pupil may appeal the school board's decision to the 
 40.14  commissioner.  The commissioner's decision regarding the number 
 40.15  of credits shall be final.  
 40.16     The credits granted to a pupil shall be counted toward the 
 40.17  graduation requirements and subject area requirements of the 
 40.18  district.  Evidence of successful completion of each class and 
 40.19  credits granted shall be included in the pupil's secondary 
 40.20  school record. 
 40.21     Sec. 40.  [120.793] [POST-SECONDARY ENROLLMENT OPTIONS 
 40.22  ACT.] 
 40.23     Subdivision 1.  [CITATION.] This section may be cited as 
 40.24  the "post-secondary enrollment options act." 
 40.25     Subd. 2.  [PURPOSE.] The purpose of this section is to 
 40.26  promote rigorous academic pursuits and to provide a wider 
 40.27  variety of options to high school pupils by encouraging and 
 40.28  enabling secondary pupils to enroll full time or part time in 
 40.29  nonsectarian courses or programs in eligible post-secondary 
 40.30  institutions, as defined in subdivision 3. 
 40.31     Subd. 3.  [DEFINITIONS.] For purposes of this section, the 
 40.32  following words have the meanings give to them. 
 40.33     (a) "eligible institution" means a Minnesota public 
 40.34  post-secondary institution, a private, nonprofit two-year trade 
 40.35  and technical school granting associate degrees, an 
 40.36  opportunities industrialization center accredited by the north 
 41.1   central association of colleges and schools, or a private, 
 41.2   residential, two-year or four-year, liberal arts, 
 41.3   degree-granting college or university located in Minnesota.  
 41.4      (b) "Course" means a course or program.  
 41.5      Subd. 4.  [AUTHORIZATION; NOTIFICATION.] Notwithstanding 
 41.6   any other law to the contrary, an 11th or 12th grade pupil 
 41.7   enrolled in a public school or an American Indian-controlled 
 41.8   tribal contract or grant school eligible for aid under section 
 41.9   124.86, except a foreign exchange pupil enrolled in a district 
 41.10  under a cultural exchange program, may apply to an eligible 
 41.11  institution, as defined in subdivision 3, to enroll in 
 41.12  nonsectarian courses offered by that post-secondary 
 41.13  institution.  If an institution accepts a secondary pupil for 
 41.14  enrollment under this section, the institution must send written 
 41.15  notice to the pupil, the pupil's district, and the commissioner 
 41.16  within ten days of acceptance.  The notice must indicate the 
 41.17  course and hours of enrollment of that pupil.  If the pupil 
 41.18  enrolls in a course for post-secondary credit, the institution 
 41.19  must notify the pupil about payment in the customary manner used 
 41.20  by the institution. 
 41.21     Subd. 4a.  [COUNSELING.] To the extent possible, the 
 41.22  district must provide counseling services to pupils and their 
 41.23  parents or guardian before the pupils enroll in courses under 
 41.24  this section to ensure that the pupils and their parents or 
 41.25  guardian are fully aware of the risks and possible consequences 
 41.26  of enrolling in post-secondary courses.  The district must 
 41.27  provide information on the program including who may enroll, 
 41.28  what institutions and courses are eligible for participation, 
 41.29  the decision-making process for granting academic credits, 
 41.30  financial arrangements for tuition, books and materials, 
 41.31  eligibility criteria for transportation aid, available support 
 41.32  services, the need to arrange an appropriate schedule, 
 41.33  consequences of failing or not completing a course in which the 
 41.34  pupil enrolls, the effect of enrolling in this program on the 
 41.35  pupil's ability to complete the required high school graduation 
 41.36  requirements, and the academic and social responsibilities that 
 42.1   must be assumed by the pupils and their parents or guardian.  
 42.2   The person providing counseling shall encourage pupils and their 
 42.3   parents or guardian to also use available counseling services at 
 42.4   the post-secondary institutions before the quarter or semester 
 42.5   of enrollment to ensure that anticipated plans are appropriate.  
 42.6      Prior to enrolling in a course, the pupil and the pupil's 
 42.7   parents or guardian must sign a form that must be provided by 
 42.8   the district and may be obtained from a post-secondary 
 42.9   institution stating that they have received the information 
 42.10  specified in this subdivision and that they understand the 
 42.11  responsibilities that must be assumed in enrolling in this 
 42.12  program.  The department must, upon request, provide technical 
 42.13  assistance to a district in developing appropriate forms and 
 42.14  counseling guidelines. 
 42.15     Subd. 4b.  [DISSEMINATION OF INFORMATION; NOTIFICATION OF 
 42.16  INTENT TO ENROLL.] By March 1 of each year, a district must all 
 42.17  provide general information about the program to all pupils in 
 42.18  grades 10 and 11.  To assist the district in planning, a pupil 
 42.19  shall inform the district by March 30 of each year of the 
 42.20  pupil's intent to enroll in post-secondary courses during the 
 42.21  following school year.  A pupil is not bound by notifying or not 
 42.22  notifying the district by March 30.  
 42.23     Subd. 4c.  [LIMIT ON PARTICIPATION.] A pupil who first 
 42.24  enrolls in grade 11 may not enroll in post-secondary courses 
 42.25  under this section for secondary credit for more than the 
 42.26  equivalent of two academic years.  A pupil who first enrolls in 
 42.27  grade 12 may not enroll in post-secondary courses under this 
 42.28  section for secondary credit for more than the equivalent of one 
 42.29  academic year.  If a pupil in grade 11 or 12 first enrolls in a 
 42.30  post-secondary course for secondary credit during the school 
 42.31  year, the time of participation shall be reduced proportionately.
 42.32  A pupil who has graduated from high school cannot participate in 
 42.33  a program under this section.  A pupil who has completed course 
 42.34  requirements for graduation but who has not received a diploma 
 42.35  may participate in the program under this section. 
 42.36     Subd. 4d.  [ENROLLMENT PRIORITY.] A post-secondary 
 43.1   institution must give priority to its post-secondary students 
 43.2   when enrolling 11th and 12th grade pupils in its courses.  A 
 43.3   post-secondary institution may provide information about its 
 43.4   programs to a secondary school or to a pupil or parent, but it 
 43.5   may not advertise or otherwise recruit or solicit the 
 43.6   participation on financial grounds, secondary pupils to enroll 
 43.7   in its programs.  An institution must not enroll secondary 
 43.8   pupils, for post-secondary enrollment options purposes, in 
 43.9   remedial, developmental, or other courses that are not college 
 43.10  level.  Once a pupil has been enrolled in a post-secondary 
 43.11  course under this section, the pupil shall not be displaced by 
 43.12  another student. 
 43.13     Subd. 4e.  [COURSES ACCORDING TO AGREEMENTS.] An eligible 
 43.14  pupil, according to subdivision 4, may enroll in a nonsectarian 
 43.15  course taught by a secondary teacher or a post-secondary faculty 
 43.16  member and offered at a secondary school, or another location, 
 43.17  according to an agreement between a school board and the 
 43.18  governing body of an eligible public post-secondary system or an 
 43.19  eligible private post-secondary institution, as defined in 
 43.20  subdivision 3.  All provisions of this section shall apply to a 
 43.21  pupil, board, district, and the governing body of a 
 43.22  post-secondary institution, except as otherwise provided. 
 43.23     Subd. 5.  [CREDITS.] A pupil may enroll in a course under 
 43.24  this section for either secondary credit or post-secondary 
 43.25  credit.  At the time a pupil enrolls in a course, the pupil 
 43.26  shall designate whether the course is for secondary or 
 43.27  post-secondary credit.  A pupil taking several courses may 
 43.28  designate some for secondary credit and some for post-secondary 
 43.29  credit.  A pupil must not audit a course under this section. 
 43.30     A district must grant academic credit to a pupil enrolled 
 43.31  in a course for secondary credit if the pupil successfully 
 43.32  completes the course.  Seven quarter or four semester college 
 43.33  credits equal at least one full year of high school credit.  
 43.34  Fewer college credits may be prorated.  A district must also 
 43.35  grant academic credit to a pupil enrolled in a course for 
 43.36  post-secondary credit if secondary credit is requested by a 
 44.1   pupil.  If no comparable course is offered by the district, the 
 44.2   district must, as soon as possible, notify the commissioner, who 
 44.3   shall determine the number of credits that shall be granted to a 
 44.4   pupil who successfully completes a course.  If a comparable 
 44.5   course is offered by the district, the school board shall grant 
 44.6   a comparable number of credits to the pupil.  If there is a 
 44.7   dispute between the district and the pupil regarding the number 
 44.8   of credits granted for a particular course, the pupil may appeal 
 44.9   the board's decision to the commissioner.  The commissioner's 
 44.10  decision regarding the number of credits shall be final.  
 44.11     The secondary credits granted to a pupil must be counted 
 44.12  toward the graduation requirements and subject area requirements 
 44.13  of the district.  Evidence of successful completion of each 
 44.14  course and secondary credits granted must be included in the 
 44.15  pupil's secondary school record.  A pupil shall provide the 
 44.16  school with a copy of the pupil's grade in each course taken for 
 44.17  secondary credit under this section.  Upon the request of a 
 44.18  pupil, the pupil's secondary school record must also include 
 44.19  evidence of successful completion and credits granted for a 
 44.20  course taken for post-secondary credit.  In either case, the 
 44.21  record must indicate that the credits were earned at a 
 44.22  post-secondary institution. 
 44.23     If a pupil enrolls in a post-secondary institution after 
 44.24  leaving secondary school, the post-secondary institution must 
 44.25  award post-secondary credit for any course successfully 
 44.26  completed for secondary credit at that institution.  Other 
 44.27  post-secondary institutions may award, after a pupil leaves 
 44.28  secondary school, post-secondary credit for any courses 
 44.29  successfully completed under this section.  An institution may 
 44.30  not charge a pupil for the award of credit.  
 44.31     Subd. 6.  [FINANCIAL ARRANGEMENTS.] For a pupil enrolled in 
 44.32  a course under this section, the department must make payments 
 44.33  according to this subdivision for courses that were taken for 
 44.34  secondary credit.  
 44.35     The department must not make payments to a district or 
 44.36  post-secondary institution for a course taken for post-secondary 
 45.1   credit only.  The department must not make payments to a 
 45.2   post-secondary institution for a course from which a student 
 45.3   officially withdraws during the first 14 days of the quarter or 
 45.4   semester or who has been absent from the post-secondary 
 45.5   institution for the first 15 consecutive school days of the 
 45.6   quarter or semester and is not receiving instruction in the home 
 45.7   or hospital. 
 45.8      A post-secondary institution shall receive the following: 
 45.9      (1) for an institution granting quarter credit, the 
 45.10  reimbursement per credit hour shall be an amount equal to 88 
 45.11  percent of the product of the formula allowance, multiplied by 
 45.12  1.3, and divided by 45; or 
 45.13     (2) for an institution granting semester credit, the 
 45.14  reimbursement per credit hour shall be an amount equal to 88 
 45.15  percent of the product of the general revenue formula allowance, 
 45.16  multiplied by 1.3, and divided by 30. 
 45.17     The department must pay to each post-secondary institution 
 45.18  100 percent of the amount in clause (1) or (2) within 30 days of 
 45.19  receiving initial enrollment information each quarter or 
 45.20  semester.  If changes in enrollment occur during a quarter or 
 45.21  semester, the change shall be reported by the post-secondary 
 45.22  institution at the time the enrollment information for the 
 45.23  succeeding quarter or semester is submitted.  At any time the 
 45.24  department notifies a post-secondary institution that an 
 45.25  overpayment has been made, the institution shall promptly remit 
 45.26  the amount due. 
 45.27     Subd. 6a.  [GRANTS AND FINANCIAL AID PROHIBITED.] A pupil 
 45.28  enrolled in a post-secondary course for secondary credit is not 
 45.29  eligible for any state student financial aid under chapter 136A. 
 45.30     Subd. 6b.  [FINANCIAL ARRANGEMENTS, PUPILS AGE 21 OR OVER.] 
 45.31  For a pupil enrolled in a course according to this section, the 
 45.32  department must make payments according to this subdivision for 
 45.33  courses taken to fulfill high school graduation requirements by 
 45.34  pupils eligible for adult high school graduation aid.  
 45.35     The department must not make payments to a district or 
 45.36  post-secondary institution for a course taken for post-secondary 
 46.1   credit only.  The department must not make payments to a 
 46.2   post-secondary institution for a course from which a student 
 46.3   officially withdraws during the first 14 days of the quarter or 
 46.4   semester or who has been absent from the post-secondary 
 46.5   institution for the first 15 consecutive school days of the 
 46.6   quarter or semester and is not receiving instruction in the home 
 46.7   or hospital. 
 46.8      A post-secondary institution shall receive the following: 
 46.9      (1) for an institution granting quarter credit, the 
 46.10  reimbursement per credit hour shall be an amount equal to 88 
 46.11  percent of the product of the formula allowance, multiplied by 
 46.12  1.3, and divided by 45; or 
 46.13     (2) for an institution granting semester credit, the 
 46.14  reimbursement per credit hour shall be an amount equal to 88 
 46.15  percent of the product of the general revenue formula allowance 
 46.16  multiplied by 1.3, and divided by 30. 
 46.17     The department must pay to each post-secondary institution 
 46.18  100 percent of the amount in clause (1) or (2) within 30 days of 
 46.19  receiving initial enrollment information each quarter or 
 46.20  semester.  If changes in enrollment occur during a quarter or 
 46.21  semester, the change shall be reported by the post-secondary 
 46.22  institution at the time the enrollment information for the 
 46.23  succeeding quarter or semester is submitted.  At any time the 
 46.24  department notifies a post-secondary institution that an 
 46.25  overpayment has been made, the institution shall promptly remit 
 46.26  the amount due. 
 46.27     A school district shall receive: 
 46.28     (1) for a pupil who is not enrolled in classes at a 
 46.29  secondary program, 12 percent of the general education formula 
 46.30  allowance times .65, times 1.3; or 
 46.31     (2) for a pupil who attends classes at a secondary program 
 46.32  part time, the general education formula allowance times .65, 
 46.33  times 1.3, times the ratio of the total number of hours the 
 46.34  pupil is in membership for courses taken by the pupil for credit 
 46.35  to 1020 hours. 
 46.36     Subd. 6c.  [FINANCIAL ARRANGEMENTS FOR COURSES PROVIDED 
 47.1   ACCORDING TO AGREEMENTS.] (a) The agreement between a board and 
 47.2   the governing body of a public post-secondary system or private 
 47.3   post-secondary institution shall set forth the payment amounts 
 47.4   and arrangements, if any, from the board to the post-secondary 
 47.5   institution.  No payments shall be made by the department 
 47.6   according to subdivision 6 or 6b.  For the purpose of computing 
 47.7   state aids for a district, a pupil enrolled according to 
 47.8   subdivision 4e shall be counted in the average daily membership 
 47.9   of the district as though the pupil were enrolled in a secondary 
 47.10  course that is not offered in connection with an agreement.  
 47.11  Nothing in this subdivision shall be construed to prohibit a 
 47.12  public post-secondary system or private post-secondary 
 47.13  institution from receiving additional state funding that may be 
 47.14  available under any other law.  
 47.15     (b) If a course is provided under subdivision 4e, offered 
 47.16  at a secondary school, and taught by a secondary teacher, the 
 47.17  post-secondary system or institution must not require a payment 
 47.18  from the board that exceeds the cost to the post-secondary 
 47.19  institution that is directly attributable to providing that 
 47.20  course. 
 47.21     Subd. 7.  [FEES; TEXTBOOKS; MATERIALS.] A post-secondary 
 47.22  institution that receives reimbursement for a pupil under 
 47.23  subdivision 6 may not charge that pupil for fees, textbooks, 
 47.24  materials, support services as defined in section 135A.16, or 
 47.25  other necessary costs of the course or program in which the 
 47.26  pupil is enrolled if the charge would be prohibited under 
 47.27  section 120.74, except for equipment purchased by the pupil that 
 47.28  becomes the property of the pupil.  An institution may require 
 47.29  the pupil to pay for fees, textbooks, and materials for a course 
 47.30  taken for post-secondary credit. 
 47.31     Subd. 7a.  [TEXTBOOKS; MATERIALS.] All textbooks and 
 47.32  equipment provided to a pupil, and paid for under subdivision 6, 
 47.33  are the property of the pupil's school district of residence.  
 47.34  Each pupil is required to return all textbooks and equipment to 
 47.35  the district after the course has ended. 
 47.36     Subd. 7b.  [SUPPORT SERVICES.] The post-secondary 
 48.1   institution must inform the pupil of the support services 
 48.2   available at that institution.  If the student has an individual 
 48.3   education plan that provides general education support and 
 48.4   accommodations, the post-secondary institution must provide the 
 48.5   support services as described in the student's IEP and the 
 48.6   post-secondary institution and the district shall negotiate an 
 48.7   agreement on the rate to be charged for the services.  Nothing 
 48.8   in this section shall prevent the student from enrolling while 
 48.9   the agreement is being developed.  If the parties cannot agree 
 48.10  on the services, on application of either party, the 
 48.11  commissioner shall resolve the dispute in the same manner the 
 48.12  commissioner fixes tuition rates under section 120.17, 
 48.13  subdivision 4.  The commissioner's decision is binding on both 
 48.14  parties. 
 48.15     Subd. 8.  [TRANSPORTATION.] A parent or guardian of a pupil 
 48.16  enrolled in a course for secondary credit may apply to the 
 48.17  pupil's district of residence for reimbursement for transporting 
 48.18  the pupil between the secondary school in which the pupil is 
 48.19  enrolled or the pupil's home and the post-secondary institution 
 48.20  that the pupil attends.  The commissioner shall establish 
 48.21  guidelines for providing state aid to districts to reimburse the 
 48.22  parent or guardian for the necessary transportation costs, which 
 48.23  shall be based on financial need.  The reimbursement may not 
 48.24  exceed the pupil's actual cost of transportation or 15 cents per 
 48.25  mile traveled, whichever is less.  Reimbursement may not be paid 
 48.26  for more than 250 miles per week.  However, if the nearest 
 48.27  post-secondary institution is more than 25 miles from the 
 48.28  pupil's resident secondary school, the weekly reimbursement may 
 48.29  not exceed the reimbursement rate per mile times the actual 
 48.30  distance between the secondary school or the pupil's home and 
 48.31  the nearest post-secondary institution times ten.  The state 
 48.32  must pay aid to the district according to the guidelines 
 48.33  established under this subdivision.  Chapter 14 does not apply 
 48.34  to the guidelines. 
 48.35     Subd. 9.  [EXCEPTION; INTERMEDIATE DISTRICTS.] A secondary 
 48.36  pupil who is a resident of a member district of an intermediate 
 49.1   district, as defined in section 136D.01, may not enroll in that 
 49.2   intermediate district's vocational program as a post-secondary 
 49.3   pupil under this section when the intermediate district operates 
 49.4   a secondary program at a college facility and secondary students 
 49.5   have access to the post-secondary curriculum and receive high 
 49.6   school and college credit for successfully completing the 
 49.7   program. 
 49.8      Subd. 10.  [LIMIT; STATE OBLIGATION.] The provisions of 
 49.9   subdivisions 6, 7, 8, and 9 shall not apply for any 
 49.10  post-secondary courses in which a pupil is enrolled in addition 
 49.11  to being enrolled full time in that pupil's district or for any 
 49.12  post-secondary course in which a pupil is enrolled for 
 49.13  post-secondary credit.  The pupil is enrolled full time if the 
 49.14  pupil attends credit-bearing classes in the high school or high 
 49.15  school program for all of the available hours of instruction. 
 49.16     Subd. 11.  [PUPILS 40 MILES OR MORE FROM AN ELIGIBLE 
 49.17  INSTITUTION.] A pupil who is enrolled in a secondary school that 
 49.18  is located 40 miles or more from the nearest eligible 
 49.19  institution may request that the resident district offer at 
 49.20  least one accelerated or advanced academic course within the 
 49.21  resident district in which the pupil may enroll for 
 49.22  post-secondary credit.  A pupil may enroll in a course offered 
 49.23  under this subdivision for either secondary or post-secondary 
 49.24  credit according to subdivision 5. 
 49.25     A district must offer an accelerated or advanced academic 
 49.26  course for post-secondary credit if one or more pupils requests 
 49.27  such a course under this subdivision.  The district may decide 
 49.28  which course to offer, how to offer the course, and whether to 
 49.29  offer one or more courses.  The district must offer at least one 
 49.30  such course in the next academic period and must continue to 
 49.31  offer at least one accelerated or advanced academic course for 
 49.32  post-secondary credit in later academic periods. 
 49.33     Subd. 11a.  [PUPILS LESS THAN 40 MILES FROM AN ELIGIBLE 
 49.34  INSTITUTION.] A pupil enrolled in a secondary school that is 
 49.35  located less than 40 miles from the nearest eligible institution 
 49.36  may enroll in a post-secondary course provided at the secondary 
 50.1   school. 
 50.2      Sec. 41.  Minnesota Statutes 1996, section 120.80, is 
 50.3   amended to read: 
 50.4      120.80 [EARLY GRADUATION.] 
 50.5      Subdivision 1.  Notwithstanding any law to the contrary, 
 50.6   any secondary school student who has completed all required 
 50.7   courses may, with the approval of the student, the student's 
 50.8   parent or guardian, and local school officials, graduate prior 
 50.9   to before the completion of the school year.  General education 
 50.10  revenue attributable to the student must be paid as though the 
 50.11  student was in attendance for the entire year. 
 50.12     Sec. 42. [120.8011] [SECRET FRATERNITIES AND SOCIETIES.] 
 50.13     Subdivision 1.  [MEMBERSHIP REGULATED.] It is unlawful for 
 50.14  any pupil, registered as such and attending any public 
 50.15  elementary, high school, community college, or technical 
 50.16  college, which is partially or wholly maintained by public 
 50.17  funds, to join, become a member of, or to solicit any other 
 50.18  pupil of any such school to join, or become a member of, any 
 50.19  secret fraternity or society wholly or partially formed from the 
 50.20  membership of pupils attending any such schools or to take part 
 50.21  in the organization or formation of any such fraternity or 
 50.22  society, except such societies or associations as are sanctioned 
 50.23  by the board of the district concerned.  
 50.24     Subd. 2.  [RULES AND REGULATIONS.] The boards shall enforce 
 50.25  the provisions of this section and have full power and authority 
 50.26  to make, adopt, and modify all rules and regulations which, in 
 50.27  their judgment and discretion, may be necessary for the proper 
 50.28  governing of such schools and enforcing all the provisions of 
 50.29  this section.  
 50.30     Subd. 3.  [PENALTIES.] The boards shall have full power and 
 50.31  authority, pursuant to the adoption of such rules and 
 50.32  regulations made and adopted by them, to suspend or dismiss any 
 50.33  pupil of such schools therefrom, or to prevent them, or any of 
 50.34  them, from graduating or participating in school honors when, 
 50.35  after investigation, in the judgment of such boards or a 
 50.36  majority of their membership, such pupil is guilty of violating 
 51.1   any of the provisions of this section or is guilty of violating 
 51.2   any rule or regulation adopted by such boards for the purpose of 
 51.3   governing such schools, or enforcing this section. 
 51.4      Subd. 4.  ["RUSHING" OR SOLICITING FORBIDDEN.] It is a 
 51.5   misdemeanor for any person, not a pupil of the schools, to be 
 51.6   upon school grounds, or to enter any school building, for the 
 51.7   purpose of "rushing" or soliciting any pupil of the schools to 
 51.8   join any fraternity, society, or association organized outside 
 51.9   of the schools.  Municipal and county courts have jurisdiction 
 51.10  of offenses committed under this subdivision.  All persons found 
 51.11  guilty shall be fined not less than $2, nor more than $10, to be 
 51.12  paid to the county treasurer or, upon failure to pay the fine, 
 51.13  to be imprisoned for not more than ten days. 
 51.14     Sec. 43.  [120.86] [SUMMER SCHOLARSHIPS FOR ACADEMIC 
 51.15  ENRICHMENT.] 
 51.16     Subdivision 1.  [ESTABLISHMENT.] A scholarship program is 
 51.17  established to enable secondary students to attend summer 
 51.18  programs sponsored by post-secondary institutions. 
 51.19     Subd. 2.  [ELIGIBLE STUDENT.] To be eligible for a 
 51.20  scholarship, a student shall: 
 51.21     (1) be a United States citizen or permanent resident of the 
 51.22  United States; 
 51.23     (2) be a resident of Minnesota; 
 51.24     (3) attend an eligible program; 
 51.25     (4) have completed at least one year of secondary school 
 51.26  but not have graduated from high school; 
 51.27     (5) have earned at least a B average during the semester or 
 51.28  quarter prior to application, or have earned at least a B 
 51.29  average during the semester or quarter prior to application in 
 51.30  the academic subject area applicable to the summer program the 
 51.31  student wishes to attend; and 
 51.32     (6) demonstrate need for financial assistance. 
 51.33     Subd. 3.  [FINANCIAL NEED.] Need for financial assistance 
 51.34  shall be based on family income, family size, and special 
 51.35  necessary expenditures of the family.  The higher education 
 51.36  services office shall review the financial need of each pupil to 
 52.1   meet the actual costs of attending the summer program, as 
 52.2   determined by the institution sponsoring the summer program.  
 52.3   The office shall award scholarships within the limits of the 
 52.4   appropriation for this section.  If the amount appropriated is 
 52.5   insufficient, the office shall allocate the amount appropriated 
 52.6   in the manner it determines.  A scholarship shall not exceed 
 52.7   $1,000. 
 52.8      Subd. 4.  [ELIGIBLE INSTITUTIONS.] A scholarship may be 
 52.9   used only at an eligible institution.  A Minnesota public 
 52.10  post-secondary institution is an eligible institution.  A 
 52.11  private post-secondary institution is eligible if it: 
 52.12     (1) is accredited by the North Central Association of 
 52.13  Colleges; 
 52.14     (2) offers an associate or baccalaureate degree program 
 52.15  approved under section 136A.65, subdivision 1; and 
 52.16     (3) is located in Minnesota. 
 52.17     Subd. 4a.  [ELIGIBLE PROGRAMS.] A scholarship may be used 
 52.18  only for an eligible program.  To be eligible, a program must: 
 52.19     (1) provide, as its primary purpose, academic instruction 
 52.20  for student enrichment in curricular areas including, but not 
 52.21  limited to, communications, humanities, social studies, social 
 52.22  science, science, mathematics, art, or foreign languages; 
 52.23     (2) not be offered for credit to post-secondary students; 
 52.24     (3) not provide remedial instruction; 
 52.25     (4) meet any other program requirements established by the 
 52.26  state board of education and the higher education services 
 52.27  office; and 
 52.28     (5) be approved by the commissioner.  
 52.29     Subd. 5.  [ADVISORY COMMITTEE.] An advisory committee shall 
 52.30  assist the state board of education in approving eligible 
 52.31  programs and shall assist the higher education services office 
 52.32  in planning, implementing, and evaluating the scholarship 
 52.33  program.  The committee must consist of 11 members, to include 
 52.34  the executive director of the higher education services office 
 52.35  or a representative, the commissioner of children, families, and 
 52.36  learning or a representative, two secondary school 
 53.1   administrators and two secondary teachers appointed by the 
 53.2   commissioner of children, families, and learning, the executive 
 53.3   director of the academic excellence foundation, a private 
 53.4   college representative appointed by the president of the 
 53.5   Minnesota private college council, a community college 
 53.6   representative and a state university representative appointed 
 53.7   by the chancellor of the Minnesota state colleges and 
 53.8   universities, and a University of Minnesota representative 
 53.9   appointed by the president of the University of Minnesota.  The 
 53.10  committee expires June 30, 1997. 
 53.11     Subd. 6.  [INFORMATION.] The higher education services 
 53.12  office, in cooperation with the academic excellence foundation, 
 53.13  must assemble and distribute information about scholarships and 
 53.14  eligible programs.  
 53.15     Subd. 7.  [ADMINISTRATION.] The higher education services 
 53.16  office and commissioner shall determine the time and manner for 
 53.17  scholarship applications, awards, and program approval. 
 53.18     Subd. 8.  [EXEMPTION FROM RULEMAKING.] Sections 14.01 to 
 53.19  14.47 do not apply to this section. 
 53.20     Sec. 44.  [120.901] [CITATION.] 
 53.21     Citations of sections 120.901 to 120.95 law may be cited as 
 53.22  "the pupil fair dismissal act of 1974."  
 53.23     Sec. 45.  [120.902] [DEFINITIONS.] 
 53.24     Subdivision 1.  [APPLICABILITY.] As used in sections 
 53.25  120.901 to 120.95, the terms defined in this section shall have 
 53.26  the meanings assigned them. 
 53.27     Subd. 2.  [DISMISSAL.] "Dismissal" means the denial of the 
 53.28  appropriate educational program to any pupil, including 
 53.29  exclusion, expulsion, and suspension.  It does not include 
 53.30  removal from class.  
 53.31     Subd. 3.  [DISTRICT.] "District" means any school district. 
 53.32     Subd. 4.  [EXCLUSION.] "Exclusion" means an action taken by 
 53.33  the school board to prevent enrollment or reenrollment of a 
 53.34  pupil for a period that shall not extend beyond the school year. 
 53.35     Subd. 5.  [EXPULSION.] "Expulsion" means an action taken by 
 53.36  a school board to prohibit an enrolled pupil from further 
 54.1   attendance for a period that shall not extend beyond an amount 
 54.2   of time equal to one school year from the date a pupil is 
 54.3   expelled. 
 54.4      Subd. 6.  [PARENT.] "Parent" means (a) one of the pupil's 
 54.5   parents, or (b) in the case of divorce or legal separation, or 
 54.6   if the child's mother was not married to the child's father when 
 54.7   the child was conceived nor when the child was born, the 
 54.8   custodial parent. 
 54.9      Subd. 7.  [PUPIL.] "Pupil" means any student with or 
 54.10  without a disability under 21 years of age eligible to attend a 
 54.11  public elementary or secondary school. 
 54.12     Subd. 8.  [SCHOOL.] "School" means any school as defined in 
 54.13  Minnesota Statutes 1971, section 120.05, subdivision 2. 
 54.14     Subd. 9.  [SCHOOL BOARD]. "School board" means the 
 54.15  governing body of any school district. 
 54.16     Subd. 10.  [SUSPENSION.] "Suspension" means an action taken 
 54.17  by the school administration, under rules promulgated by the 
 54.18  school board, prohibiting a pupil from attending school for a 
 54.19  period of no more than ten school days.  If a suspension is 
 54.20  longer than five days, the suspending administrator must provide 
 54.21  the superintendent with a reason for the longer suspension.  
 54.22  This definition does not apply to dismissal from school for one 
 54.23  school day or less.  Each suspension action shall include a 
 54.24  readmission plan.  The readmission plan must include, where 
 54.25  appropriate, a provision for alternative programs to be 
 54.26  implemented upon readmission.  Suspension may not be 
 54.27  consecutively imposed against the same pupil for the same course 
 54.28  of conduct, or incident of misconduct, except where the pupil 
 54.29  will create an immediate and substantial danger to surrounding 
 54.30  persons or property.  In no event shall suspension exceed 15 
 54.31  school days, provided that an alternative program shall be 
 54.32  implemented to the extent that suspension exceeds five days. 
 54.33     Sec. 46.  [120.903] [POLICY.] 
 54.34     No public school shall deny due process or equal protection 
 54.35  of the law to any public school pupil involved in a dismissal 
 54.36  proceeding which may result in suspension, exclusion, or 
 55.1   expulsion.  
 55.2      Sec. 47.  [120.9031] [EXCLUSION AND EXPULSION OF PUPILS 
 55.3   WITH A DISABILITY.] 
 55.4      When a pupil who has an individual education plan is 
 55.5   excluded or expelled under sections 127.26 to 127.39 for 
 55.6   misbehavior that is not a manifestation of the pupil's disabling 
 55.7   condition, the district shall provide special education and 
 55.8   related services after a period of suspension, if suspension is 
 55.9   imposed.  The district must initiate a review of the pupil's 
 55.10  individual education plan within ten days of the commencement of 
 55.11  an expulsion, exclusion, or a suspension of ten days or more. 
 55.12     Sec. 48.  [120.9032] [EXPULSION FOR POSSESSION OF FIREARM.] 
 55.13     (a) Notwithstanding the time limitation in section 127.27, 
 55.14  subdivision 5, a school board must expel for a period of at 
 55.15  least one year a pupil who is determined to have brought a 
 55.16  firearm to school except the board may modify this expulsion 
 55.17  requirement for a pupil on a case-by-case basis.  For the 
 55.18  purposes of this section, firearm is as defined in United States 
 55.19  Code, title 18, section 921. 
 55.20     (b) Notwithstanding chapter 13, a student's expulsion or 
 55.21  withdrawal or transfer from a school after an expulsion action 
 55.22  is initiated against the student for a weapons violation under 
 55.23  paragraph (a) may be disclosed by the school district initiating 
 55.24  the expulsion proceeding.  Unless the information is otherwise 
 55.25  public, the disclosure may be made only to another school 
 55.26  district in connection with the possible admission of the 
 55.27  student to the other district. 
 55.28     Sec. 49.  [120.904] [GROUNDS FOR DISMISSAL.] 
 55.29     Subdivision 1.  [PROVISION OF ALTERNATIVE PROGRAMS.] No 
 55.30  school shall dismiss any pupil without attempting to provide 
 55.31  alternative programs of education prior to dismissal 
 55.32  proceedings, except where it appears that the pupil will create 
 55.33  an immediate and substantial danger to self or to surrounding 
 55.34  persons or property.  Such programs may include special 
 55.35  tutoring, modification of the curriculum for the pupil, 
 55.36  placement in a special class or assistance from other agencies. 
 56.1      Subd. 2.  [GROUNDS FOR DISMISSAL.] A pupil may be dismissed 
 56.2   on the following grounds: 
 56.3      (a) Willful violation of any reasonable school board 
 56.4   regulation.  Such regulation must be clear and definite to 
 56.5   provide notice to pupils that they must conform their conduct to 
 56.6   its requirements; 
 56.7      (b) Willful conduct which materially and substantially 
 56.8   disrupts the rights of others to an education; 
 56.9      (c) Willful conduct which endangers the pupil or other 
 56.10  pupils, or the property of the school.  
 56.11     Sec. 50.  [120.905] [SUSPENSION PROCEDURES.] 
 56.12     Subdivision 1.  [ADMINISTRATIVE CONFERENCE.] No suspension 
 56.13  from school shall be imposed without an informal administrative 
 56.14  conference with the pupil, except where it appears that the 
 56.15  pupil will create an immediate and substantial danger to self or 
 56.16  to surrounding persons or property. 
 56.17     Subd. 2.  [NOTICE.] A written notice containing the grounds 
 56.18  for suspension, a brief statement of the facts, a description of 
 56.19  the testimony, a readmission plan, and a copy of sections 127.26 
 56.20  to 127.39, must be personally served upon the pupil at or before 
 56.21  the time the suspension is to take effect, and upon the pupil's 
 56.22  parent or guardian by certified mail within 48 hours of the 
 56.23  conference.  In the event a pupil is suspended without an 
 56.24  informal administrative conference on the grounds that the pupil 
 56.25  will create an immediate and substantial danger to surrounding 
 56.26  persons or property, the written notice shall be served either 
 56.27  personally or by certified mail upon the pupil and the pupil's 
 56.28  parent or guardian within 48 hours of the suspension.  Service 
 56.29  by certified mail is complete upon mailing. 
 56.30     Subd. 3.  [EXCEPTION.] Notwithstanding the provisions of 
 56.31  subdivisions 1 and 2, the pupil may be suspended pending the 
 56.32  school board's decision in the expulsion or exclusion hearing; 
 56.33  provided that an alternative program is be implemented to the 
 56.34  extent that suspension exceeds five days. 
 56.35     Sec. 51.  [120.906] [EXCLUSION AND EXPULSION PROCEDURES.] 
 56.36     Subdivision 1.  [HEARING.] No exclusion or expulsion shall 
 57.1   be imposed without a hearing, unless the right to a hearing is 
 57.2   waived in writing by the pupil and parent or guardian.  The 
 57.3   action shall be initiated by the school board or its agent.  
 57.4      Subd. 2.  [NOTICE.] Written notice of intent to take action 
 57.5   must: 
 57.6      (a) Be served upon the pupil and the pupil's parent or 
 57.7   guardian by certified mail; 
 57.8      (b) Contain a complete statement of the facts, a list of 
 57.9   the witnesses and a description of their testimony; 
 57.10     (c) State the date, time, and place of the hearing; 
 57.11     (d) Be accompanied by a copy of sections 120.901 to 120.95; 
 57.12     (e) Describe alternative educational programs accorded the 
 57.13  pupil prior to commencement of the expulsion or exclusion 
 57.14  proceedings; and 
 57.15     (f) Inform the pupil and parent or guardian of the right to:
 57.16     (1) Have legal counsel at the hearing; 
 57.17     (2) Examine the pupil's records before the hearing; 
 57.18     (3) Present evidence; and 
 57.19     (4) Confront and cross-examine witnesses.  
 57.20     Subd. 3.  [HEARING WITHIN TEN DAYS OF NOTICE.] The hearing 
 57.21  shall be scheduled within ten days of the service of the written 
 57.22  notice unless an extension, not to exceed five days, is 
 57.23  requested for good cause by the school board, pupil, parent or 
 57.24  guardian.  
 57.25     Subd. 4.  [CONVENIENT HEARING.] The hearing must be at a 
 57.26  time and place reasonably convenient to pupil, parent or 
 57.27  guardian.  
 57.28     Subd. 5.  [CLOSED HEARING.] The hearing must be closed 
 57.29  unless the pupil, parent or guardian requests an open hearing.  
 57.30     Subd. 6.  [RIGHT TO REPRESENTATION.] The pupil shall have a 
 57.31  right to a representative of the pupil's own choosing, including 
 57.32  legal counsel.  If a pupil is financially unable to retain 
 57.33  counsel, the school board shall advise the pupil's parent or 
 57.34  guardian of available legal assistance.  
 57.35     Subd. 7.  [HEARING OFFICER.] The hearing must take place 
 57.36  before: 
 58.1      (a) An independent hearing officer; 
 58.2      (b) A member of the school board; 
 58.3      (c) A committee of the school board, or; 
 58.4      (d) The full school board; 
 58.5   as determined by the school board. 
 58.6      Subd. 8.  [HEARING RECORDED.] The proceedings of the 
 58.7   hearing must be recorded and preserved, at the expense of the 
 58.8   school district, pending ultimate disposition of the action.  
 58.9   Testimony must be given under oath.  The hearing officer or a 
 58.10  member of the school board shall have the power to issue 
 58.11  subpoenas and administer oaths.  
 58.12     Subd. 9.  [ACCESS TO RECORDS.] At a reasonable time prior 
 58.13  to the hearing, the pupil, parent or guardian, or 
 58.14  representative, shall be given access to all public school 
 58.15  system records pertaining to the pupil, including any tests or 
 58.16  reports upon which the proposed action may be based.  
 58.17     Subd. 10.  [RIGHT TO COMPEL ATTENDANCE AT HEARINGS.] The 
 58.18  pupil, parent or guardian, or representative, shall have the 
 58.19  right to compel the attendance of any official employee or agent 
 58.20  of the public school system or any public employee or any other 
 58.21  person who may have evidence upon which the proposed action may 
 58.22  be based, and to confront and to cross-examine any witness 
 58.23  testifying for the public school system.  
 58.24     Subd. 11.  [RIGHT TO PRESENT EVIDENCE AND TESTIMONY.] The 
 58.25  pupil, parent or guardian, or representative, shall have the 
 58.26  right to present evidence and testimony, including expert 
 58.27  psychological or educational testimony.  
 58.28     Subd. 12.  [PUPIL TESTIMONY.] The pupil cannot be compelled 
 58.29  to testify in the dismissal proceedings.  
 58.30     Subd. 13.  [RECOMMENDATION.] The recommendation of the 
 58.31  hearing officer or school board member or committee shall be 
 58.32  based solely upon substantial evidence presented at the hearing 
 58.33  and be made to the school board within two days of the end of 
 58.34  the hearing.  
 58.35     Subd. 14.  [DECISION.] The decision by the school board 
 58.36  must be based upon the recommendation of the hearing officer or 
 59.1   school board member or committee and shall be rendered at a 
 59.2   special meeting within five days after receipt of the 
 59.3   recommendation.  The decision must be in writing and the 
 59.4   controlling facts found upon which the decision is made shall be 
 59.5   stated in sufficient detail to apprise the parties and the 
 59.6   commissioner of the basis and reason for the decision. 
 59.7      Subd. 15.  [ADMISSION OR READMISSION PLAN.] A school board 
 59.8   may prepare and enforce an admission or readmission plan for any 
 59.9   pupil who is suspended, excluded, or expelled from school.  The 
 59.10  plan may include measures to improve the pupil's behavior and 
 59.11  require parental involvement in the admission or readmission 
 59.12  process, and may indicate the consequences to the pupil of not 
 59.13  improving the pupil's behavior. 
 59.14     Sec. 52.  [120.9061] [GOOD FAITH EXCEPTION.] 
 59.15     A violation of the technical provisions of the pupil fair 
 59.16  dismissal act of 1974, made in good faith, is not a defense to a 
 59.17  disciplinary procedure under the act unless the pupil can 
 59.18  demonstrate actual prejudice as a result of the violation. 
 59.19     Sec. 53.  [120.907] [APPEAL.] 
 59.20     An exclusion or expulsion decision made pursuant to 
 59.21  sections 120.901 to 120.95 may be appealed to the commissioner.  
 59.22  The commissioner or the commissioner's representative shall make 
 59.23  a final decision based upon a record of evidence presented at 
 59.24  the hearing.  Such ruling shall be binding upon the parties, 
 59.25  subject to judicial review as provided in section 127.33.  
 59.26     Sec. 54.  [120.908] [JUDICIAL REVIEW.] 
 59.27     The decision of the commissioner made pursuant to sections 
 59.28  120.901 to 120.95 shall be subject to judicial review in 
 59.29  accordance with chapter 14. 
 59.30     Sec. 55.  [120.909] [REPORTS TO SERVICE AGENCY.] 
 59.31     The board shall report any action taken pursuant to 
 59.32  sections 120.901 to 120.95 to the appropriate public service 
 59.33  agency, when the pupil is under the supervision of such agency.  
 59.34     Sec. 56.  [120.91] [NONAPPLICATION OF COMPULSORY ATTENDANCE 
 59.35  LAW.] 
 59.36     The provisions of section 120.101, subdivision 5, shall not 
 60.1   apply to any pupil during a dismissal pursuant to sections 
 60.2   120.901 to 120.95. 
 60.3      Sec. 57.  [120.92] [REPORT TO COMMISSIONER OF CHILDREN, 
 60.4   FAMILIES, AND LEARNING.] 
 60.5      The board must report each exclusion or expulsion within 30 
 60.6   days of the effective date of the action to the commissioner.  
 60.7   This report must include a statement of alternative programs of 
 60.8   education accorded the pupil prior to the commencement of 
 60.9   exclusion or expulsion proceedings.  
 60.10     Sec. 58.  [120.93] [NOTICE OF RIGHT TO BE REINSTATED.] 
 60.11     Whenever a pupil fails to return to school within ten 
 60.12  school days of the termination of dismissal, the pupil and the 
 60.13  pupil's parents shall be informed by certified mail of the 
 60.14  pupil's right to attend and to be reinstated in the public 
 60.15  school.  
 60.16     Sec. 59.  [120.94] [POLICIES TO BE ESTABLISHED.] 
 60.17     (a) The commissioner shall promulgate guidelines to assist 
 60.18  each school board.  Each board must establish uniform criteria 
 60.19  for dismissal and adopt policies and rules in writing to 
 60.20  effectuate the purposes of sections 120.901 to 120.95.  The 
 60.21  policies must emphasize the prevention of dismissal action 
 60.22  through early detection of problems.  The policies must 
 60.23  recognize the continuing responsibility of the school for the 
 60.24  education of the pupil during the dismissal period and help 
 60.25  prepare the pupil for readmission.  
 60.26     (b) The commissioner shall actively encourage and assist 
 60.27  school districts to cooperatively establish alternative learning 
 60.28  programs that offer instruction to pupils who are dismissed from 
 60.29  school for willfully engaging in dangerous, disruptive, or 
 60.30  violent behavior, including for possessing a firearm in a school 
 60.31  zone. 
 60.32     Sec. 60.  [120.95] [APPLICATION.] 
 60.33     Subdivision 1.  [AFFECT ON OTHER LAW.] Sections 120.901 to 
 60.34  120.95 do not amend or otherwise affect or change section 
 60.35  363.03, subdivision 5, clause (2).  
 60.36     Subd. 2.  [APPLICABILITY.] Sections 120.901 to 120.95 apply 
 61.1   only to those portions of the school program for which credit is 
 61.2   granted. 
 61.3      Sec. 61. [120.96] [DEFINITIONS.] 
 61.4      Subdivision 1.  [REMOVAL FROM CLASS.] "Removal from class" 
 61.5   and "removal" mean any actions taken by a teacher, principal, or 
 61.6   other school district employee to prohibit a pupil from 
 61.7   attending a class or activity period for a period of time not to 
 61.8   exceed five days, pursuant to procedures established in the 
 61.9   school district discipline policy adopted by the school board 
 61.10  pursuant to section 127.41.  
 61.11     Subd. 2.  [CLASS PERIOD.] "Class period" or "activity 
 61.12  period" means a period of time as defined in the district's 
 61.13  written discipline policy.  
 61.14     Subd. 3.  [SCHOOL SITE MEDIATION BOARD.] "School site 
 61.15  mediation board" means a board representative of parents of 
 61.16  students in the building, staff, and students that shall have 
 61.17  the responsibilities as defined in section 127.411.  The 
 61.18  principal or other person having general control and supervision 
 61.19  of the school, shall serve as an ex officio member of the board. 
 61.20     Subd. 4.  [SCHOOL-BASED OMBUDSPERSON.] "School-based 
 61.21  ombudsperson" means an administrator, a teacher, a parent, or a 
 61.22  student representative who shall have the responsibilities as 
 61.23  outlined in section 127.412. 
 61.24     Sec. 62.  [120.961] [DISCIPLINE AND REMOVAL OF STUDENTS 
 61.25  FROM CLASS.] 
 61.26     Subdivision 1.  [REQUIRED POLICY.] Each school board must 
 61.27  adopt a written districtwide school discipline policy which 
 61.28  includes written rules of conduct for students, minimum 
 61.29  consequences for violations of the rules, and grounds and 
 61.30  procedures for removal of a student from class.  The policy must 
 61.31  be developed with the participation of administrators, teachers, 
 61.32  employees, pupils, parents, community members, and such other 
 61.33  individuals or organizations as the board determines 
 61.34  appropriate.  A school site council may adopt additional 
 61.35  provisions to the policy subject to the approval of the school 
 61.36  board. 
 62.1      Subd. 2.  [GROUNDS FOR REMOVAL FROM CLASS.] The policy must 
 62.2   establish the various grounds for which a student may be removed 
 62.3   from a class in the district for a period of time pursuant to 
 62.4   the procedures specified in the policy.  The grounds in the 
 62.5   policy must include at least the following provisions as well as 
 62.6   other grounds determined appropriate by the board:  
 62.7      (a) willful conduct which materially and substantially 
 62.8   disrupts the rights of others to an education; 
 62.9      (b) willful conduct which endangers school district 
 62.10  employees, the student or other students, or the property of the 
 62.11  school; 
 62.12     (c) willful violation of any rule of conduct specified in 
 62.13  the discipline policy adopted by the board.  
 62.14     Subd. 3.  [POLICY COMPONENTS.] The policy must include at 
 62.15  least the following components:  
 62.16     (a) rules governing student conduct and procedures for 
 62.17  informing students of the rules; 
 62.18     (b) the grounds for removal of a student from a class; 
 62.19     (c) the authority of the classroom teacher to remove 
 62.20  students from the classroom pursuant to procedures and rules 
 62.21  established in the district's policy; 
 62.22     (d) the procedures for removal of a student from a class by 
 62.23  a teacher, school administrator, or other school district 
 62.24  employee; 
 62.25     (e) the period of time for which a student may be removed 
 62.26  from a class, which may not exceed five class periods for a 
 62.27  violation of a rule of conduct; 
 62.28     (f) provisions relating to the responsibility for and 
 62.29  custody of a student removed from a class; 
 62.30     (g) the procedures for return of a student to the specified 
 62.31  class from which the student has been removed; 
 62.32     (h) the procedures for notifying a student and the 
 62.33  student's parents or guardian of violations of the rules of 
 62.34  conduct and of resulting disciplinary actions; 
 62.35     (i) any procedures determined appropriate for encouraging 
 62.36  early involvement of parents or guardians in attempts to improve 
 63.1   a student's behavior; 
 63.2      (j) any procedures determined appropriate for encouraging 
 63.3   early detection of behavioral problems; 
 63.4      (k) any procedures determined appropriate for referring a 
 63.5   student in need of special education services to those services; 
 63.6      (1) the procedures for consideration of whether there is a 
 63.7   need for a further assessment or of whether there is a need for 
 63.8   a review of the adequacy of a current individual education plan 
 63.9   of a student with a disability who is removed from class; 
 63.10     (m) procedures for detecting and addressing chemical abuse 
 63.11  problems of a student while on the school premises; 
 63.12     (n) the minimum consequences for violations of the code of 
 63.13  conduct; and 
 63.14     (o) procedures for immediate and appropriate interventions 
 63.15  tied to violations of the code.  
 63.16     Sec. 63.  [120.962] [SCHOOL SITE MEDIATION BOARD.] 
 63.17     Subdivision 1.  [BOARD ALLOWED.] A school district or 
 63.18  school site council may establish a school site mediation 
 63.19  board.  The board must consist of equal numbers of staff and 
 63.20  parents and, in the case of secondary schools, student 
 63.21  representatives.  Members shall be representative of the school 
 63.22  community and must be selected by a method as determined in the 
 63.23  district's discipline policy. 
 63.24     Subd. 2.  [PURPOSES AND DUTIES.] The board must mediate 
 63.25  issues in dispute at the school site related to the 
 63.26  implementation of district and school site codes of conduct 
 63.27  under sections 127.40 to 127.413, and the application of the 
 63.28  codes to a student. 
 63.29     Sec. 64.  [120.963] [OMBUDSPERSON SERVICE.] 
 63.30     A school district or school site council may establish an 
 63.31  ombudsperson service for students, parents, and staff.  The 
 63.32  service must consist of an administrator, a student, a parent, 
 63.33  and a teacher.  The school site must notify students, parents, 
 63.34  and staff of the availability of the service.  The service must 
 63.35  provide advocacy for enforcement of the codes of conduct and the 
 63.36  procedures to remediate disputes related to implementation of 
 64.1   the code of conduct and the goals of the school in maintaining 
 64.2   an orderly learning environment for all students. 
 64.3      Sec. 65.  [120.964] [NOTIFICATION.] 
 64.4      Representatives of the school board and the exclusive 
 64.5   representative of the teachers shall discuss issues related to 
 64.6   notification prior to placement in classrooms of students with 
 64.7   histories of violent behavior and any need for intervention 
 64.8   services or conflict resolution or training for staff in such 
 64.9   cases. 
 64.10     Sec. 66.  [120.965] [REVIEW OF POLICY.] 
 64.11     The principal or other person having general control and 
 64.12  supervision of the school, and representatives of parents, 
 64.13  students, and staff in a school building shall confer at least 
 64.14  annually to review the discipline policy and to assess whether 
 64.15  the policy has been enforced.  Each school board must conduct an 
 64.16  annual review of the districtwide discipline policy. 
 64.17     Sec. 67.  [120.97] [DEFINITIONS.] 
 64.18     Subdivision 1.  [APPLICATION.] For the purposes of 
 64.19  providing instruction to children with a disability under 
 64.20  sections 120.17 and 120.1701, this section, and section 127.44, 
 64.21  the following terms have the meanings given them.  
 64.22     Subd. 2.  [AVERSIVE PROCEDURE.] "Aversive procedure" means 
 64.23  the planned application of an aversive stimulus. 
 64.24     Subd. 3.  [AVERSIVE STIMULUS.] "Aversive stimulus" means an 
 64.25  object that is used, or an event or situation that occurs 
 64.26  immediately after a specified behavior in order to suppress that 
 64.27  behavior.  
 64.28     Subd. 4.  [DEPRIVATION PROCEDURE.] "Deprivation procedure" 
 64.29  means the planned delay or withdrawal of goods, services, or 
 64.30  activities that the person would otherwise receive. 
 64.31     Subd. 5.  [EMERGENCY.] "Emergency" means a situation in 
 64.32  which immediate intervention is necessary to protect a pupil or 
 64.33  other individual from physical injury or to prevent property 
 64.34  damage.  
 64.35     Sec. 68.  [120.971] [AVERSIVE AND DEPRIVATION PROCEDURES.] 
 64.36     The state board must adopt rules governing the use of 
 65.1   aversive and deprivation procedures by school district employees 
 65.2   or persons under contract with a school district.  The rules 
 65.3   must: 
 65.4      (1) promote the use of positive approaches and must not 
 65.5   encourage or require the use of aversive or deprivation 
 65.6   procedures; 
 65.7      (2) require that planned application of aversive and 
 65.8   deprivation procedures be a part of an individual education 
 65.9   plan; 
 65.10     (3) require parents or guardians to be notified after the 
 65.11  use of aversive or deprivation procedures in an emergency; 
 65.12     (4) establish health and safety standards for the use of 
 65.13  time-out procedures that require a safe environment, continuous 
 65.14  monitoring of the child, ventilation, and adequate space; and 
 65.15     (5) contain a list of prohibited procedures. 
 65.16     Sec. 69.  [120.973] [CORPORAL PUNISHMENT.] 
 65.17     Subdivision 1.  [DEFINITION.] For the purpose of this 
 65.18  section, "corporal punishment" means conduct involving:  
 65.19     (1) hitting or spanking a person with or without an object; 
 65.20  or 
 65.21     (2) unreasonable physical force that causes bodily harm or 
 65.22  substantial emotional harm. 
 65.23     Subd. 2.  [CORPORAL PUNISHMENT NOT ALLOWED.] An employee or 
 65.24  agent of a public school district shall not inflict corporal 
 65.25  punishment or cause corporal punishment to be inflicted upon a 
 65.26  pupil to reform unacceptable conduct or as a penalty for 
 65.27  unacceptable conduct. 
 65.28     Subd. 3.  [VIOLATION.] Conduct that violates subdivision 2 
 65.29  is not a crime under section 645.241, but may be a crime under 
 65.30  chapter 609 if the conduct violates a provision of chapter 609. 
 65.31     Sec. 70.  [120.98] [MODEL POLICY.] 
 65.32     The commissioner shall maintain and make available to 
 65.33  school boards a model sexual, religious, and racial harassment 
 65.34  and violence policy.  The model policy shall address the 
 65.35  requirements of section 127.46. 
 65.36     Each school board must submit to the commissioner a copy of 
 66.1   the sexual, religious, and racial harassment and sexual, 
 66.2   religious, and racial violence policy the board has adopted. 
 66.3      Sec. 71.  [120.981] [SEXUAL, RELIGIOUS, AND RACIAL 
 66.4   HARASSMENT AND VIOLENCE POLICY.] 
 66.5      Each school board must adopt a written sexual, religious, 
 66.6   and racial harassment and sexual, religious, and racial violence 
 66.7   policy that conforms with sections 363.01 to 363.15.  The policy 
 66.8   shall apply to pupils, teachers, administrators, and other 
 66.9   school personnel, include reporting procedures, and set forth 
 66.10  disciplinary actions that will be taken for violation of the 
 66.11  policy.  Disciplinary actions must conform with collective 
 66.12  bargaining agreements and sections 127.27 to 127.39.  The policy 
 66.13  must be conspicuously posted throughout each school building, 
 66.14  given to each district employee and independent contractor at 
 66.15  the time of entering into the person's employment contract, and 
 66.16  included in each school's student handbook on school policies.  
 66.17  Each school must develop a process for discussing the school's 
 66.18  sexual, religious, and racial harassment and violence policy 
 66.19  with students and school employees. 
 66.20     Sec. 72.  [120.982] [SCHOOL LOCKER POLICY.] 
 66.21     Subdivision 1.  [POLICY.] It is the policy of the state of 
 66.22  Minnesota that:  
 66.23     "School lockers are the property of the school district.  
 66.24  At no time does the school district relinquish its exclusive 
 66.25  control of lockers provided for the convenience of students.  
 66.26  Inspection of the interior of lockers may be conducted by school 
 66.27  authorities for any reason at any time, without notice, without 
 66.28  student consent, and without a search warrant.  The personal 
 66.29  possessions of students within a school locker may be searched 
 66.30  only when school authorities have a reasonable suspicion that 
 66.31  the search will uncover evidence of a violation of law or school 
 66.32  rules.  As soon as practicable after the search of a student's 
 66.33  personal possessions, the school authorities must provide notice 
 66.34  of the search to students whose lockers were searched unless 
 66.35  disclosure would impede an ongoing investigation by police or 
 66.36  school officials." 
 67.1      Subd. 2.  [DISSEMINATION.] The locker policy must be 
 67.2   disseminated to parents and students in the way that other 
 67.3   policies of general application to students are disseminated.  A 
 67.4   copy of the policy must be provided to a student the first time 
 67.5   after the policy is effective that the student is given the use 
 67.6   of a locker. 
 67.7      Sec. 73.  [120.983] [POLICY TO REFER FIREARMS POSSESSOR.] 
 67.8      Each school board must have a policy requiring the 
 67.9   appropriate school official to, as soon as practicable, refer to 
 67.10  the criminal justice or juvenile delinquency system, as 
 67.11  appropriate, any pupil who brings a firearm to school unlawfully.
 67.12     Sec. 74.  [REPEALER.] 
 67.13     Minnesota Statutes 1996, sections 120.0112; 120.03; 120.05; 
 67.14  120.08; 120.1045; 120.17; 120.1701; 120.172; 120.173; 120.181; 
 67.15  120.1811; 120.182; 120.183; 120.185; 120.187; 120.188; 120.189; 
 67.16  120.190; 120.59; 120.60; 120.61; 120.62; 120.63; 120.64; 120.65; 
 67.17  120.66; 120.67, 120.71, 120.72, and 120.90, are repealed. 
 67.18                             ARTICLE 2
 67.19                            CHAPTER 120A
 67.20                           SPECIAL NEEDS
 67.21     Section 1.  [120A.01] [DEFINITIONS.] 
 67.22     For purposes of this chapter, the words defined in section 
 67.23  120.02 have the same meaning. 
 67.24     Sec. 2.  [120A.02] [CHILDREN WITH A DISABILITY, DEFINED.] 
 67.25     Subdivision 1.  [DEFINITION.] Every child who has a hearing 
 67.26  impairment, visual disability, speech or language impairment, 
 67.27  physical handicap, other health impairment, mental handicap, 
 67.28  emotional/behavioral disorder, specific learning disability, or 
 67.29  deaf/blind disability and needs special instruction and 
 67.30  services, as determined by the standards of the state board, is 
 67.31  a child with a disability.  In addition, every child under age 
 67.32  five who needs special instruction and services, as determined 
 67.33  by the standards of the state board, because the child has a 
 67.34  substantial delay or has an identifiable physical or mental 
 67.35  condition known to hinder normal development is a child with a 
 67.36  disability. 
 68.1      Subd. 2.  [EXCEPTION.] A child with a short-term or 
 68.2   temporary physical or emotional illness or disability, as 
 68.3   determined by the standards of the state board, is not a child 
 68.4   with a disability.  
 68.5      Sec. 3.  [120A.03] [CHILDREN WITH A DISABILITY.] 
 68.6      Subdivision 1.  [SPECIAL INSTRUCTION FOR CHILDREN WITH A 
 68.7   DISABILITY.] Every district must provide special instruction and 
 68.8   services, either within the district or in another district, for 
 68.9   children with a disability who are residents of the district and 
 68.10  who are disabled as set forth in section 120.03.  
 68.11  Notwithstanding any age limits in laws to the contrary, special 
 68.12  instruction and services must be provided from birth until 
 68.13  September 1 after the child with a disability becomes 22 years 
 68.14  old but must not extend beyond secondary school or its 
 68.15  equivalent, except as provided in section 126.22, subdivision 
 68.16  2.  Local health, education, and social service agencies must 
 68.17  refer children under age five who are known to need or suspected 
 68.18  of needing special instruction and services to the school 
 68.19  district.  Districts with less than the minimum number of 
 68.20  eligible children with a disability as determined by the state 
 68.21  board must cooperate with other districts to maintain a full 
 68.22  range of programs for education and services for children with a 
 68.23  disability.  This subdivision does not alter the compulsory 
 68.24  attendance requirements of section 120.101. 
 68.25     Subd. 2.  [HIGH SCHOOL DIPLOMA.] Upon completion of 
 68.26  secondary school or the equivalent, a pupil with a disability 
 68.27  who satisfactorily attains the objectives in the pupil's 
 68.28  individual education plan must be granted a high school diploma 
 68.29  that is identical to the diploma granted to a pupil without a 
 68.30  disability. 
 68.31     Subd. 3.  [METHOD OF SPECIAL INSTRUCTION.] (a) Special 
 68.32  instruction and services for children with a disability must be 
 68.33  based on the assessment and individual education plan.  The 
 68.34  instruction and services may be provided by one or more of the 
 68.35  following methods: 
 68.36     (1) in connection with attending regular elementary and 
 69.1   secondary school classes; 
 69.2      (2) establishment of special classes; 
 69.3      (3) at the home or bedside of the child; 
 69.4      (4) in other districts; 
 69.5      (5) instruction and services by special education 
 69.6   cooperative centers established under this section, or in 
 69.7   another member district of the cooperative center to which the 
 69.8   resident district of the child with a disability belongs; 
 69.9      (6) in a state residential school or a school department of 
 69.10  a state institution approved by the commissioner; 
 69.11     (7) in other states; 
 69.12     (8) by contracting with public, private or voluntary 
 69.13  agencies; 
 69.14     (9) for children under age five and their families, 
 69.15  programs and services established through collaborative efforts 
 69.16  with other agencies; 
 69.17     (10) for children under age five and their families, 
 69.18  programs in which children with a disability are served with 
 69.19  children without a disability; and 
 69.20     (11) any other method approved by the commissioner. 
 69.21     (b) Preference shall be given to providing special 
 69.22  instruction and services to children under age three and their 
 69.23  families in the residence of the child with the parent or 
 69.24  primary caregiver, or both, present. 
 69.25     (c) The primary responsibility for the education of a child 
 69.26  with a disability must remain with the district of the child's 
 69.27  residence regardless of which method of providing special 
 69.28  instruction and services is used.  If a district other than a 
 69.29  child's district of residence provides special instruction and 
 69.30  services to the child, then the district providing the special 
 69.31  instruction and services must notify the child's district of 
 69.32  residence before the child's individual education plan is 
 69.33  developed and must provide the district of residence an 
 69.34  opportunity to participate in the plan's development.  The 
 69.35  district of residence must inform the parents of the child about 
 69.36  the methods of instruction that are available. 
 70.1      (d) Paragraphs (e) to (i) may be cited as the "Blind 
 70.2   Persons' Literacy Rights and Education Act." 
 70.3      (e) The following definitions apply to paragraphs (f) to 
 70.4   (i). 
 70.5      "Blind student" means an individual who is eligible for 
 70.6   special educational services and who: 
 70.7      (1) has a visual acuity of 20/200 or less in the better eye 
 70.8   with correcting lenses or has a limited field of vision such 
 70.9   that the widest diameter subtends an angular distance of no 
 70.10  greater than 20 degrees; or 
 70.11     (2) has a medically indicated expectation of visual 
 70.12  deterioration. 
 70.13     "Braille" means the system of reading and writing through 
 70.14  touch commonly known as standard English Braille.  
 70.15     "Individualized education plan" means a written statement 
 70.16  developed for a student eligible for special education and 
 70.17  services pursuant to this section and section 602(a)(20) of part 
 70.18  A of the Individuals with Disabilities Education Act, United 
 70.19  States Code, title 20, section 1401(a). 
 70.20     (f) In developing an individualized education plan for each 
 70.21  blind student the presumption must be that proficiency in 
 70.22  Braille reading and writing is essential for the student to 
 70.23  achieve satisfactory educational progress.  The assessment 
 70.24  required for each student must include a Braille skills 
 70.25  inventory, including a statement of strengths and deficits.  
 70.26  Braille instruction and use are not required by this paragraph 
 70.27  if, in the course of developing the student's individualized 
 70.28  education program, team members concur that the student's visual 
 70.29  impairment does not affect reading and writing performance 
 70.30  commensurate with ability.  This paragraph does not require the 
 70.31  exclusive use of Braille if other special education services are 
 70.32  appropriate to the student's educational needs.  The provision 
 70.33  of other appropriate services does not preclude Braille use or 
 70.34  instruction.  Instruction in Braille reading and writing must be 
 70.35  available for each blind student for whom the multidisciplinary 
 70.36  team has determined that reading and writing is appropriate. 
 71.1      (g) Instruction in Braille reading and writing must be 
 71.2   sufficient to enable each blind student to communicate 
 71.3   effectively and efficiently with the same level of proficiency 
 71.4   expected of the student's peers of comparable ability and grade 
 71.5   level.  
 71.6      (h) The student's individualized education plan must 
 71.7   specify: 
 71.8      (1) the results obtained from the assessment required under 
 71.9   paragraph (f); 
 71.10     (2) how Braille will be implemented through integration 
 71.11  with other classroom activities; 
 71.12     (3) the date on which Braille instruction will begin; 
 71.13     (4) the length of the period of instruction and the 
 71.14  frequency and duration of each instructional session; 
 71.15     (5) the level of competency in Braille reading and writing 
 71.16  to be achieved by the end of the period and the objective 
 71.17  assessment measures to be used; and 
 71.18     (6) if a decision has been made under paragraph (f) that 
 71.19  Braille instruction or use is not required for the student:  
 71.20     (i) a statement that the decision was reached after a 
 71.21  review of pertinent literature describing the educational 
 71.22  benefits of Braille instruction and use; and 
 71.23     (ii) a specification of the evidence used to determine that 
 71.24  the student's ability to read and write effectively without 
 71.25  Braille is not impaired. 
 71.26     (i) Instruction in Braille reading and writing is a service 
 71.27  for the purpose of special education and services under this 
 71.28  section. 
 71.29     (j) Paragraphs (e) to (i) must not be construed to 
 71.30  supersede any rights of a parent or guardian of a child with a 
 71.31  disability under federal or state law. 
 71.32     Subd. 4.  [RULES OF THE STATE BOARD.] (a) The state board 
 71.33  must promulgate rules relative to qualifications of essential 
 71.34  personnel, courses of study, methods of instruction, pupil 
 71.35  eligibility, size of classes, rooms, equipment, supervision, 
 71.36  parent consultation, and any other rules it deems necessary for 
 72.1   instruction of children with a disability.  These rules must 
 72.2   provide standards and procedures appropriate for the 
 72.3   implementation of and within the limitations of subdivisions 3a 
 72.4   and 3b.  These rules must also provide standards for the 
 72.5   discipline, control, management, and protection of children with 
 72.6   a disability.  The state board must not adopt rules for pupils 
 72.7   served in level 1, 2, or 3, as defined in Minnesota Rules, part 
 72.8   3525.2340, establishing either case loads or the maximum number 
 72.9   of pupils that may be assigned to special education teachers.  
 72.10  The state board, in consultation with the departments of health 
 72.11  and human services, must adopt permanent rules for instruction 
 72.12  and services for children under age five and their families.  
 72.13  These rules are binding on state and local education, health, 
 72.14  and human services agencies.  The state board must adopt rules 
 72.15  to determine eligibility for special education services.  The 
 72.16  rules must include procedures and standards by which to grant 
 72.17  variances for experimental eligibility criteria.  The state 
 72.18  board must, according to section 14.05, subdivision 4, notify a 
 72.19  district applying for a variance from the rules within 45 
 72.20  calendar days of receiving the request whether the request for 
 72.21  the variance has been granted or denied.  If a request is 
 72.22  denied, the board must specify the program standards used to 
 72.23  evaluate the request and the reasons for denying the request.  
 72.24     (b) The state's regulatory scheme should support schools by 
 72.25  assuring that all state special education rules adopted by the 
 72.26  state board result in one or more of the following outcomes: 
 72.27     (1) increased time available to teachers for educating 
 72.28  students through direct and indirect instruction; 
 72.29     (2) consistent and uniform access to effective education 
 72.30  programs for students with disabilities throughout the state; 
 72.31     (3) reduced inequalities, conflict, and court actions 
 72.32  related to the delivery of special education instruction and 
 72.33  services for students with disabilities; 
 72.34     (4) clear expectations for service providers and for 
 72.35  students with disabilities; 
 72.36     (5) increased accountability for all individuals and 
 73.1   agencies that provide instruction and other services to students 
 73.2   with disabilities; 
 73.3      (6) greater focus for the state and local resources 
 73.4   dedicated to educating students with disabilities; and 
 73.5      (7) clearer standards for evaluating the effectiveness of 
 73.6   education and support services for students with disabilities. 
 73.7      Subd. 5.  [SCHOOL DISTRICT OBLIGATIONS.] Every district 
 73.8   must ensure the following: 
 73.9      (1) all students with disabilities are provided the special 
 73.10  instruction and services that are appropriate to their needs.  
 73.11  Where the individual education plan team has determined 
 73.12  appropriate goals and objectives based on the student's needs, 
 73.13  including the extent to which the student can be included in the 
 73.14  least restrictive environment, and where there are essentially 
 73.15  equivalent and effective instruction, related services, or 
 73.16  assistive technology devices available to meet the student's 
 73.17  needs, cost to the district may be among the factors considered 
 73.18  by the team in choosing how to provide the appropriate services, 
 73.19  instruction, or devices that are to be made part of the 
 73.20  student's individual education plan.  The student's needs and 
 73.21  the special education instruction and services to be provided 
 73.22  must be agreed upon through the development of an individual 
 73.23  education plan.  The plan must address the student's need to 
 73.24  develop skills to live and work as independently as possible 
 73.25  within the community.  By grade 9 or age 14, the plan must 
 73.26  address the student's needs for transition from secondary 
 73.27  services to post-secondary education and training, employment, 
 73.28  community participation, recreation, and leisure and home 
 73.29  living.  The plan must include a statement of the needed 
 73.30  transition services, including a statement of the interagency 
 73.31  responsibilities or linkages or both before secondary services 
 73.32  are concluded; 
 73.33     (2) children with a disability under age five and their 
 73.34  families are provided special instruction and services 
 73.35  appropriate to the child's level of functioning and needs; 
 73.36     (3) children with a disability and their parents or 
 74.1   guardians are guaranteed procedural safeguards and the right to 
 74.2   participate in decisions involving identification, assessment 
 74.3   including assistive technology assessment, and educational 
 74.4   placement of children with a disability; 
 74.5      (4) to the maximum extent appropriate, children with a 
 74.6   disability, including those in public or private institutions or 
 74.7   other care facilities, are educated with children who are not 
 74.8   disabled, and that special classes, separate schooling, or other 
 74.9   removal of children with a disability from the regular 
 74.10  educational environment occurs only when and to the extent that 
 74.11  the nature or severity of the disability is such that education 
 74.12  in regular classes with the use of supplementary services cannot 
 74.13  be achieved satisfactorily; 
 74.14     (5) in accordance with recognized professional standards, 
 74.15  testing and evaluation materials, and procedures utilized for 
 74.16  the purposes of classification and placement of children with a 
 74.17  disability are selected and administered so as not to be 
 74.18  racially or culturally discriminatory; and 
 74.19     (6) the rights of the child are protected when the parents 
 74.20  or guardians are not known or not available, or the child is a 
 74.21  ward of the state. 
 74.22     Subd. 6.  [PROCEDURES FOR DECISIONS.] Every district must 
 74.23  utilize at least the following procedures for decisions 
 74.24  involving identification, assessment, and educational placement 
 74.25  of children with a disability: 
 74.26     (a) Parents and guardians must receive prior written notice 
 74.27  of:  
 74.28     (1) any proposed formal educational assessment or proposed 
 74.29  denial of a formal educational assessment of their child; 
 74.30     (2) a proposed placement of their child in, transfer from 
 74.31  or to, or denial of placement in a special education program; or 
 74.32     (3) the proposed provision, addition, denial, or removal of 
 74.33  special education services for their child; 
 74.34     (b) The district must not proceed with the initial formal 
 74.35  assessment of a child, the initial placement of a child in a 
 74.36  special education program, or the initial provision of special 
 75.1   education services for a child without the prior written consent 
 75.2   of the child's parent or guardian.  The refusal of a parent or 
 75.3   guardian to consent may be overridden by the decision in a 
 75.4   hearing held pursuant to clause (e) at the district's initiative.
 75.5      (c) Parents and guardians must have an opportunity to meet 
 75.6   with appropriate district staff in at least one conciliation 
 75.7   conference, mediation, or other method of alternative dispute 
 75.8   resolution that the parties agree to, if they object to any 
 75.9   proposal of which they are notified pursuant to clause (a).  The 
 75.10  conciliation process or other form of alternative dispute 
 75.11  resolution must not be used to deny or delay a parent or 
 75.12  guardian's right to a due process hearing.  If the parent or 
 75.13  guardian refuses efforts by the district to conciliate the 
 75.14  dispute with the district, the requirement of an opportunity for 
 75.15  conciliation or other alternative dispute resolution must be 
 75.16  deemed to be satisfied.  Notwithstanding other law, in any 
 75.17  proceeding following a conciliation conference, the district 
 75.18  must not offer a conciliation conference memorandum into 
 75.19  evidence, except for any portions that describe the district's 
 75.20  final proposed offer of service.  Otherwise, with respect to 
 75.21  forms of dispute resolution, mediation, or conciliation, 
 75.22  Minnesota Rule of Evidence 408 applies.  The department may 
 75.23  reimburse the districts or directly pay the costs of lay 
 75.24  advocates, not to exceed $150 per dispute, used in conjunction 
 75.25  with alternative dispute resolution. 
 75.26     (d) The commissioner must establish a mediation process to 
 75.27  assist parents, districts, or other parties to resolve disputes 
 75.28  arising out of the identification, assessment, or educational 
 75.29  placement of children with a disability.  The mediation process 
 75.30  must be offered as an informal alternative to the due process 
 75.31  hearing provided under clause (e), but must not be used to deny 
 75.32  or postpone the opportunity of a parent or guardian to obtain a 
 75.33  due process hearing. 
 75.34     (e) Parents, guardians, and the district must have an 
 75.35  opportunity to obtain an impartial due process hearing initiated 
 75.36  and conducted by and in the district responsible for assuring 
 76.1   that an appropriate program is provided in accordance with state 
 76.2   board rules, if the parent or guardian continues to object to:  
 76.3      (1) a proposed formal educational assessment or proposed 
 76.4   denial of a formal educational assessment of their child; 
 76.5      (2) the proposed placement of their child in, or transfer 
 76.6   of their child to a special education program; 
 76.7      (3) the proposed denial of placement of their child in a 
 76.8   special education program or the transfer of their child from a 
 76.9   special education program; 
 76.10     (4) the proposed provision or addition of special education 
 76.11  services for their child; or 
 76.12     (5) the proposed denial or removal of special education 
 76.13  services for their child. 
 76.14     Within five business days after the request for a hearing, 
 76.15  or as directed by the hearing officer, the objecting party must 
 76.16  provide the other party with a brief written statement of 
 76.17  particulars of the objection, the reasons for the objection, and 
 76.18  the specific remedies sought.  The other party must provide the 
 76.19  objecting party with a written response to the statement of 
 76.20  objections within five business days of receipt of the statement.
 76.21     The hearing must take place before an impartial hearing 
 76.22  officer mutually agreed to by the board and the parent or 
 76.23  guardian.  Within four business days of the receipt of the 
 76.24  request for the hearing, if the parties have not agreed on the 
 76.25  hearing officer, the board must request the commissioner to 
 76.26  appoint a hearing officer.  The board must include with the 
 76.27  request the name of the person requesting the hearing, the name 
 76.28  of the student, the attorneys involved, if any, and the date the 
 76.29  hearing request was received.  The hearing officer must not be a 
 76.30  board member or employee of the district where the child resides 
 76.31  or of the child's district of residence, an employee of any 
 76.32  other public agency involved in the education or care of the 
 76.33  child, or any person with a personal or professional interest 
 76.34  that would conflict with the person's objectivity at the 
 76.35  hearing.  A person who otherwise qualifies as a hearing officer 
 76.36  is not an employee of the district solely because the person is 
 77.1   paid by the district to serve as a hearing officer.  If the 
 77.2   hearing officer requests an independent educational assessment 
 77.3   of a child, the cost of the assessment must be at district 
 77.4   expense.  The proceedings must be recorded and preserved, at the 
 77.5   expense of the school district, pending ultimate disposition of 
 77.6   the action. 
 77.7      (f) The decision of the hearing officer pursuant to clause 
 77.8   (e) must be rendered not more than 45 calendar days from the 
 77.9   date of the receipt of the request for the hearing, except that 
 77.10  hearing officers are encouraged to accelerate the timeline to 30 
 77.11  days for children birth through two whose needs change rapidly 
 77.12  and require quick resolution of complaints.  A hearing officer 
 77.13  may not grant specific extensions of time beyond the 45-day 
 77.14  period unless requested by either party for good cause shown on 
 77.15  the record.  The decision of the hearing officer is binding on 
 77.16  all parties unless appealed to the commissioner by the parent; 
 77.17  guardian; board of the district where the child resides pursuant 
 77.18  to clause (g); and also in the case of children birth through 
 77.19  two, by the county board. 
 77.20     The local decision must: 
 77.21     (1) be in writing; 
 77.22     (2) state the controlling facts upon which the decision is 
 77.23  made in sufficient detail to apprise the parties and the hearing 
 77.24  review officer of the basis and reason for the decision; and 
 77.25     (3) be based on the standards set forth in subdivision 5 
 77.26  and the rules of the state board. 
 77.27     (g) Any local decision issued pursuant to clauses (e) and 
 77.28  (f) may be appealed to the commissioner within 30 calendar days 
 77.29  of receipt of that written decision, by the parent, guardian, or 
 77.30  the board of the district responsible for assuring that an 
 77.31  appropriate program is provided in accordance with state board 
 77.32  rules.  The appealing party must note the specific parts of the 
 77.33  hearing decision being appealed. 
 77.34     If the decision is appealed, a written transcript of the 
 77.35  hearing must be made by the district and provided by the 
 77.36  district to the parties involved and the hearing review officer 
 78.1   within five calendar days of the filing of the appeal.  The 
 78.2   hearing review officer must conduct an appellate review and 
 78.3   issue a final independent decision based on an impartial review 
 78.4   of the local decision and the entire record within 30 calendar 
 78.5   days after the filing of the appeal.  However, the hearing 
 78.6   review officer must seek additional evidence if necessary and 
 78.7   may afford the parties an opportunity for written or oral 
 78.8   argument.  Any hearing held to seek additional evidence must be 
 78.9   an impartial due process hearing but is deemed not to be a 
 78.10  contested case hearing for purposes of chapter 14.  The hearing 
 78.11  review officer may grant specific extensions of time beyond the 
 78.12  30-day period at the request of any party for good cause shown 
 78.13  on the record. 
 78.14     The final decision must: 
 78.15     (1) be in writing; 
 78.16     (2) include findings and conclusions; and 
 78.17     (3) be based upon the standards set forth in subdivision 5 
 78.18  and in the rules of the state board. 
 78.19     (h) The decision of the hearing review officer is final 
 78.20  unless appealed by the parent or guardian or board to the 
 78.21  Minnesota court of appeals or federal district court as provided 
 78.22  by federal law.  State judicial review must be in accordance 
 78.23  with chapter 14.  
 78.24     (i) The commissioner shall select an individual who has the 
 78.25  qualifications enumerated in this paragraph to serve as the 
 78.26  hearing review officer: 
 78.27     (1) the individual must be knowledgeable and impartial; 
 78.28     (2) the individual must not have a personal interest in or 
 78.29  specific involvement with the student who is a party to the 
 78.30  hearing; 
 78.31     (3) the individual must not have been employed as an 
 78.32  administrator by the district that is a party to the hearing; 
 78.33     (4) the individual must not have been involved in the 
 78.34  selection of the administrators of the district that is a party 
 78.35  to the hearing; 
 78.36     (5) the individual must not have a personal, economic, or 
 79.1   professional interest in the outcome of the hearing other than 
 79.2   the proper administration of the federal and state laws, rules, 
 79.3   and policies; 
 79.4      (6) the individual must not have substantial involvement in 
 79.5   the development of a state or local policy or procedures that 
 79.6   are challenged in the appeal; 
 79.7      (7) the individual is not a current employee or board 
 79.8   member of a Minnesota public school district, education 
 79.9   district, intermediate unit or regional education agency, the 
 79.10  department, and the state board of education; and 
 79.11     (8) the individual is not a current employee or board 
 79.12  member of a disability advocacy organization or group.  
 79.13     (j) In all appeals, the parent or guardian of the pupil 
 79.14  with a disability or the district that is a party to the hearing 
 79.15  may challenge the impartiality or competence of the proposed 
 79.16  hearing review officer by applying to the hearing review officer.
 79.17     (k) Pending the completion of proceedings pursuant to this 
 79.18  subdivision, unless the district and the parent or guardian of 
 79.19  the child agree otherwise, the child must remain in the child's 
 79.20  current educational placement and must not be denied initial 
 79.21  admission to school. 
 79.22     (l) The child's district of residence, a resident district, 
 79.23  and providing district must receive notice of and may be a party 
 79.24  to any hearings or appeals under this subdivision. 
 79.25     (m) A district is not liable for harmless technical 
 79.26  violations of this subdivision or rules implementing this 
 79.27  subdivision if the district can demonstrate on a case-by-case 
 79.28  basis that the violations did not harm the student's educational 
 79.29  progress or the parent or guardian's right to notice, 
 79.30  participation, or due process. 
 79.31     (n) Within ten calendar days after appointment, the hearing 
 79.32  officer must schedule and hold a prehearing conference.  At that 
 79.33  conference, or later, the hearing officer may take any 
 79.34  appropriate action a court may take under Rule 16 of Minnesota 
 79.35  Rules of Civil Procedure including, but not limited to, 
 79.36  scheduling, jurisdiction, and listing witnesses including expert 
 80.1   witnesses. 
 80.2      (o) A hearing officer or hearing review officer appointed 
 80.3   under this subdivision is deemed to be an employee of the state 
 80.4   under section 3.732 for the purposes of section 3.736 only. 
 80.5      (p) In order to be eligible for selection, hearing officers 
 80.6   and hearing review officers must participate in training and 
 80.7   follow procedures as designated by the commissioner. 
 80.8      (q) The hearing officer may admit all evidence that 
 80.9   possesses probative value, including hearsay, if it is the type 
 80.10  of evidence on which reasonable, prudent persons are accustomed 
 80.11  to rely in the conduct of their serious affairs.  The hearing 
 80.12  officer must give effect to the rules of privilege recognized by 
 80.13  law.  Evidence that is incompetent, irrelevant, immaterial, or 
 80.14  unduly repetitious must be excluded. 
 80.15     Subd. 7.  [INTERAGENCY SERVICES.] If at the time of initial 
 80.16  referral for an educational assessment, or a reassessment, the 
 80.17  district determines that a child with disabilities who is age 3 
 80.18  through 21 may be eligible for interagency services, the 
 80.19  district may request that the county of residence provide a 
 80.20  representative to the initial assessment or reassessment team 
 80.21  meeting or the first individual education plan team meeting 
 80.22  following the assessment or reassessment.  The district may 
 80.23  request to have a county representative attend other individual 
 80.24  education plan team meetings when it is necessary to facilitate 
 80.25  coordination between district and county provided services.  
 80.26  Upon request from a district, the resident county must provide a 
 80.27  representative to assist the individual education plan team in 
 80.28  determining the child's eligibility for existing health, mental 
 80.29  health, or other support services administered or provided by 
 80.30  the county.  The individual education plan team and the county 
 80.31  representative must develop an interagency plan of care for an 
 80.32  eligible child and the child's family to coordinate services 
 80.33  required under the child's individual education plan with county 
 80.34  services.  The interagency plan of care must include appropriate 
 80.35  family information with the consent of the family, a description 
 80.36  of how services will be coordinated between the district and 
 81.1   county, a description of service coordinator responsibilities 
 81.2   and services, and a description of activities for obtaining 
 81.3   third-party payment for eligible services, including medical 
 81.4   assistance payments. 
 81.5      Subd. 8.  [SPECIAL INSTRUCTIONS FOR NONRESIDENT CHILDREN.] 
 81.6   When a district provides instruction and services outside the 
 81.7   district of residence, board and lodging, and any tuition to be 
 81.8   paid, must be paid by the district of residence.  The tuition 
 81.9   rate to be charged for any child with a disability must be the 
 81.10  actual cost of providing special instruction and services to the 
 81.11  child including a proportionate amount for capital outlay and 
 81.12  debt service but not including any amount for transportation, 
 81.13  minus the amount of special aid for children with a disability 
 81.14  received on behalf of that child.  If the boards involved do not 
 81.15  agree upon the tuition rate, either board may apply to the 
 81.16  commissioner to fix the rate.  The commissioner must then set a 
 81.17  date for a hearing, giving each board at least ten days' notice, 
 81.18  and after the hearing the commissioner must make an order fixing 
 81.19  the tuition rate, which is binding on both districts. 
 81.20     When a district provides instruction and services in a day 
 81.21  program outside the district of residence, the district of 
 81.22  residence is responsible for providing transportation.  When a 
 81.23  district provides instruction and services requiring board and 
 81.24  lodging or placement in a residential program outside the 
 81.25  district of residence, the nonresident district in which the 
 81.26  child is placed is responsible for providing transportation.  
 81.27  Transportation costs shall be paid by the district responsible 
 81.28  for providing transportation and the state must pay 
 81.29  transportation aid to that district.  
 81.30     For the purposes of this section, any district may enter 
 81.31  into an agreement, upon mutually agreed upon terms and 
 81.32  conditions, to provide special instruction and services for 
 81.33  children with a disability.  In that event, one of the 
 81.34  participating units may employ and contract with necessary 
 81.35  qualified personnel to offer services in the several districts.  
 81.36  Each participating unit must reimburse the employing unit a 
 82.1   proportionate amount of the actual cost of providing the special 
 82.2   instruction and services, less the amount of state special 
 82.3   education aid, which shall be claimed in full by the employing 
 82.4   district. 
 82.5      Subd. 9.  [ATTENDANCE IN ANOTHER DISTRICT.] No resident of 
 82.6   a district who is eligible for special instruction and services 
 82.7   pursuant to this section may be denied provision of this 
 82.8   instruction and service because of attending a public school in 
 82.9   another district pursuant to section 123.39, subdivision 5, if 
 82.10  the attendance is not subject to section 120.075, 120.0751, or 
 82.11  120.0752.  If the pupil attends a public school located in a 
 82.12  contiguous district and the district of attendance does not 
 82.13  provide special instruction and services, the district of 
 82.14  residence must provide necessary transportation for the pupil 
 82.15  between the boundary of the district of residence and the 
 82.16  educational facility where special instruction and services are 
 82.17  provided within the district of residence.  The district of 
 82.18  residence may provide necessary transportation for the pupil 
 82.19  between its boundary and the school attended in the contiguous 
 82.20  district, but must not pay the cost of transportation provided 
 82.21  outside the boundary of the district of residence. 
 82.22     Subd. 10.  [SCHOOL OF PARENTS' CHOICE.] Nothing in this 
 82.23  chapter must be construed as preventing parents of a child with 
 82.24  a disability from sending the child to a school of their choice, 
 82.25  if they so elect, subject to admission standards and policies 
 82.26  adopted according to chapter 128A, and all other provisions of 
 82.27  chapters 120 to 129. 
 82.28     Subd. 11.  [SUMMER PROGRAMS.] A district may provide summer 
 82.29  programs for children with a disability living within the 
 82.30  district and nonresident children temporarily placed in the 
 82.31  district pursuant to subdivision 12 or 13.  Prior to March 31 or 
 82.32  30 days after the child with a disability is placed in the 
 82.33  district, whichever is later, the providing district must give 
 82.34  notice to the district of residence of any nonresident children 
 82.35  temporarily placed in the district pursuant to subdivision 12 or 
 82.36  13, of its intention to provide these programs.  Notwithstanding 
 83.1   any contrary provisions in subdivisions 12 and 13, the district 
 83.2   providing the special instruction and services must apply for 
 83.3   special education aid for the summer program.  The unreimbursed 
 83.4   actual cost of providing the program for nonresident children 
 83.5   with a disability, including the cost of board and lodging, may 
 83.6   be billed to the district of the child's residence and must be 
 83.7   paid by the resident district.  Transportation costs must be 
 83.8   paid by the district responsible for providing transportation 
 83.9   pursuant to subdivision 12 or 13 and transportation aid must be 
 83.10  paid to that district. 
 83.11     Subd. 12.  [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 
 83.12  The responsibility for special instruction and services for a 
 83.13  child with a disability temporarily placed in another district 
 83.14  for care and treatment must be determined in the following 
 83.15  manner: 
 83.16     (a) The district of residence of a child shall be the 
 83.17  district in which the child's parent resides, if living, or the 
 83.18  child's guardian, or the district designated by the commissioner 
 83.19  if neither parent nor guardian is living within the state. 
 83.20     (b) When a child is temporarily placed for care and 
 83.21  treatment in a day program located in another district and the 
 83.22  child continues to live within the district of residence during 
 83.23  the care and treatment, the district of residence is responsible 
 83.24  for providing transportation and an appropriate educational 
 83.25  program for the child.  The district may provide the educational 
 83.26  program at a school within the district of residence, at the 
 83.27  child's residence, or in the district in which the day treatment 
 83.28  center is located by paying tuition to that district. 
 83.29     (c) When a child is temporarily placed in a residential 
 83.30  program for care and treatment, the nonresident district in 
 83.31  which the child is placed is responsible for providing an 
 83.32  appropriate educational program for the child and necessary 
 83.33  transportation while the child is attending the educational 
 83.34  program; and must bill the district of the child's residence for 
 83.35  the actual cost of providing the program, as outlined in 
 83.36  subdivision 8.  However, the board, lodging, and treatment costs 
 84.1   incurred in behalf of a child with a disability placed outside 
 84.2   of the district of residence by the commissioner of human 
 84.3   services or the commissioner of corrections or their agents, for 
 84.4   reasons other than providing for the child's special educational 
 84.5   needs must not become the responsibility of either the district 
 84.6   providing the instruction or the district of the child's 
 84.7   residence. 
 84.8      (d) The district of residence must pay tuition and other 
 84.9   program costs, not including transportation costs, to the 
 84.10  district providing the instruction and services.  The district 
 84.11  of residence may claim general education aid for the child as 
 84.12  provided by law.  Transportation costs must be paid by the 
 84.13  district responsible for providing the transportation and the 
 84.14  state must pay transportation aid to that district. 
 84.15     Subd. 13.  [PLACEMENT IN STATE INSTITUTION; 
 84.16  RESPONSIBILITY.] (a) Responsibility for special instruction and 
 84.17  services for a child with a disability placed in a state 
 84.18  institution on a temporary basis must be determined in the 
 84.19  following manner: 
 84.20     (1) the legal residence of the child is the district in 
 84.21  which the child's parent resides, if living, or the child's 
 84.22  guardian; and 
 84.23     (2) when the educational needs of the child can be met 
 84.24  through the institutional program, the costs for the instruction 
 84.25  must be paid by the department to which the institution is 
 84.26  assigned.  
 84.27     (b) When it is determined that the child can benefit from 
 84.28  public school enrollment, provision for the instruction shall be 
 84.29  made in the following manner: 
 84.30     (1) determination of eligibility for special instruction 
 84.31  and services must be made by the commissioner and the 
 84.32  commissioner of the department responsible for the institution; 
 84.33     (2) the district where the institution is located is 
 84.34  responsible for providing transportation and an appropriate 
 84.35  educational program for the child and must make a tuition charge 
 84.36  to the child's district of residence for the actual cost of 
 85.1   providing the program; and 
 85.2      (3) the district of the child's residence must pay the 
 85.3   tuition and other program costs excluding transportation costs 
 85.4   and may claim general education aid for the child.  
 85.5   Transportation costs must be paid by the district where the 
 85.6   institution is located and the state must pay transportation aid 
 85.7   to that district. 
 85.8      Subd. 14.  [ATTENDANCE AT SCHOOL FOR THE DISABLED.] 
 85.9   Responsibility for special instruction and services for a 
 85.10  visually disabled or hearing impaired child attending the 
 85.11  Minnesota state academy for the deaf or the Minnesota state 
 85.12  academy for the blind must be determined in the following manner:
 85.13     (a) The legal residence of the child is the district in 
 85.14  which the child's parent or guardian resides. 
 85.15     (b) When it is determined pursuant to section 128A.05, 
 85.16  subdivision 1 or 2, that the child is entitled to attend either 
 85.17  school, the state board must provide the appropriate educational 
 85.18  program for the child.  The state board must make a tuition 
 85.19  charge to the child's district of residence for the cost of 
 85.20  providing the program.  The amount of tuition charged must not 
 85.21  exceed the basic revenue of the district for that child, for the 
 85.22  amount of time the child is in the program.  For purposes of 
 85.23  this subdivision, "basic revenue" has the meaning given it in 
 85.24  section 124A.22, subdivision 2.  The district of the child's 
 85.25  residence must pay the tuition and may claim general education 
 85.26  aid for the child.  Tuition received by the state board, except 
 85.27  for tuition received under clause (c), must be deposited in the 
 85.28  state treasury as provided in clause (g). 
 85.29     (c) In addition to the tuition charge allowed in clause 
 85.30  (b), the academies may charge the child's district of residence 
 85.31  for the academy's unreimbursed cost of providing an 
 85.32  instructional aide assigned to that child, if that aide is 
 85.33  required by the child's individual education plan.  Tuition 
 85.34  received under this clause must be used by the academies to 
 85.35  provide the required service. 
 85.36     (d) When it is determined that the child can benefit from 
 86.1   public school enrollment but that the child should also remain 
 86.2   in attendance at the applicable school, the district where the 
 86.3   institution is located must provide an appropriate educational 
 86.4   program for the child and must make a tuition charge to the 
 86.5   state board for the actual cost of providing the program, less 
 86.6   any amount of aid received pursuant to section 124.32.  The 
 86.7   state board must pay the tuition and other program costs 
 86.8   including the unreimbursed transportation costs.  Aids for 
 86.9   children with a disability must be paid to the district 
 86.10  providing the special instruction and services.  Special 
 86.11  transportation must be provided by the district providing the 
 86.12  educational program and the state must reimburse that district 
 86.13  within the limits provided by law.  
 86.14     (e) Notwithstanding the provisions of clauses (b) and (d), 
 86.15  the state board may agree to make a tuition charge for less than 
 86.16  the amount specified in clause (b) for pupils attending the 
 86.17  applicable school who are residents of the district where the 
 86.18  institution is located and who do not board at the institution, 
 86.19  if that district agrees to make a tuition charge to the state 
 86.20  board for less than the amount specified in clause (d) for 
 86.21  providing appropriate educational programs to pupils attending 
 86.22  the applicable school. 
 86.23     (f) Notwithstanding the provisions of clauses (b) and (d), 
 86.24  the state board may agree to supply staff from the Minnesota 
 86.25  state academy for the deaf and the Minnesota state academy for 
 86.26  the blind to participate in the programs provided by the 
 86.27  district where the institutions are located when the programs 
 86.28  are provided to students in attendance at the state schools.  
 86.29     (g) On May 1 of each year, the state board must count the 
 86.30  actual number of Minnesota resident kindergarten and elementary 
 86.31  students and the actual number of Minnesota resident secondary 
 86.32  students enrolled and receiving education services at the 
 86.33  Minnesota state academy for the deaf and the Minnesota state 
 86.34  academy for the blind.  The state board must deposit in the 
 86.35  state treasury an amount equal to all tuition received less:  
 86.36     (1) the total number of students on May 1 less 175, times 
 87.1   the ratio of the number of kindergarten and elementary students 
 87.2   to the total number of students on May 1, times the general 
 87.3   education formula allowance; plus 
 87.4      (2) the total number of students on May 1 less 175, times 
 87.5   the ratio of the number of secondary students on May 1 to the 
 87.6   total number of students on May 1, times 1.3, times the general 
 87.7   education formula allowance.  
 87.8      (h) The sum provided by the calculation in clause (g), 
 87.9   subclauses (1) and (2), must be deposited in the state treasury 
 87.10  and credited to the general operation account of the academy for 
 87.11  the deaf and the academy for the blind.  
 87.12     (i) There is annually appropriated to the department for 
 87.13  the Faribault academies the tuition amounts received and 
 87.14  credited to the general operation account of the academies under 
 87.15  this section.  A balance in an appropriation under this 
 87.16  paragraph does not cancel but is available in successive fiscal 
 87.17  years. 
 87.18     Subd. 15.  [RESIDENCE OF CHILD UNDER SPECIAL CONDITIONS.] 
 87.19  The legal residence of a child with a disability placed in a 
 87.20  foster facility for care and treatment when: 
 87.21     (1) parental rights have been terminated by court order; 
 87.22     (2) a parent or guardian is not living within the state; 
 87.23     (3) no other district residence can be established; or 
 87.24     (4) a parent or guardian having legal custody of the child 
 87.25  is an inmate of a Minnesota correctional facility or is a 
 87.26  resident of a halfway house under the supervision of the 
 87.27  commissioner of corrections; 
 87.28  is the district in which the child resides.  The board of the 
 87.29  district of residence must provide the same educational program 
 87.30  for the child as it provides for all resident children with a 
 87.31  disability in the district. 
 87.32     Subd. 16.  [SPECIAL INSTRUCTION.] No resident of a district 
 87.33  who is eligible for special instruction and services pursuant to 
 87.34  this section may be denied provision of this instruction and 
 87.35  service on a shared time basis because of attendance at a 
 87.36  nonpublic school defined in section 123.932, subdivision 3.  If 
 88.1   a resident pupil with a disability attends a nonpublic school 
 88.2   located within the district of residence, the district must 
 88.3   provide necessary transportation for that pupil within the 
 88.4   district between the nonpublic school and the educational 
 88.5   facility where special instruction and services are provided on 
 88.6   a shared time basis.  If a resident pupil with a disability 
 88.7   attends a nonpublic school located in another district and if no 
 88.8   agreement exists pursuant to section 124A.034, subdivision 1 or 
 88.9   1a, for the provision of special instruction and services on a 
 88.10  shared time basis to that pupil by the district of attendance 
 88.11  and where the special instruction and services are provided 
 88.12  within the district of residence, the district of residence must 
 88.13  provide necessary transportation for that pupil between the 
 88.14  boundary of the district of residence and the educational 
 88.15  facility.  The district of residence may provide necessary 
 88.16  transportation for that pupil between its boundary and the 
 88.17  nonpublic school attended, but the nonpublic school must pay the 
 88.18  cost of transportation provided outside the district boundary. 
 88.19     Subd. 17.  [NONRESIDENT EDUCATION; BILLING.] All tuition 
 88.20  billing for the education of nonresident children pursuant to 
 88.21  this section must be done on uniform forms prescribed by the 
 88.22  commissioner.  The billing must contain an itemized statement of 
 88.23  costs that are being charged to the district of residence.  One 
 88.24  copy of each billing must be filed with the commissioner. 
 88.25     Subd. 18.  [TRANSPORTATION AID AGREEMENTS.] Notwithstanding 
 88.26  the provisions of subdivisions 8, 11, and 12, when a child 
 88.27  receives special instruction and services in a day program 
 88.28  outside the resident district, the resident district and the 
 88.29  nonresident district where the child is placed may enter into an 
 88.30  agreement providing for the nonresident district to pay the cost 
 88.31  of any particular transportation categories specified in section 
 88.32  124.225, subdivision 1, and claim transportation aid for those 
 88.33  categories.  In this case, the nonresident district may not 
 88.34  obtain any payment from the resident district for the categories 
 88.35  covered by the agreement.  
 88.36     Subd. 19.  [THIRD PARTY PAYMENT.] Nothing in this section 
 89.1   relieves an insurer or similar third party from an otherwise 
 89.2   valid obligation to pay, or changes the validity of an 
 89.3   obligation to pay, for services rendered to a child with a 
 89.4   disability and the child's family.  
 89.5      Subd. 20.  [COMMUNITY TRANSITION INTERAGENCY COMMITTEE.] A 
 89.6   district, group of districts, or special education cooperative, 
 89.7   in cooperation with the county or counties in which the district 
 89.8   or cooperative is located, must establish a community transition 
 89.9   interagency committee for youth with disabilities, beginning at 
 89.10  grade 9 or age equivalent, and their families.  Members of the 
 89.11  committee must consist of representatives from special 
 89.12  education, vocational and regular education, community 
 89.13  education, post-secondary education and training institutions, 
 89.14  adults with disabilities who have received transition services 
 89.15  if such persons are available, parents of youth with 
 89.16  disabilities, local business or industry, rehabilitation 
 89.17  services, county social services, health agencies, and 
 89.18  additional public or private adult service providers as 
 89.19  appropriate.  The committee must elect a chair and must meet 
 89.20  regularly.  The committee must: 
 89.21     (1) identify current services, programs, and funding 
 89.22  sources provided within the community for secondary and 
 89.23  post-secondary aged youth with disabilities and their families; 
 89.24     (2) facilitate the development of multiagency teams to 
 89.25  address present and future transition needs of individual 
 89.26  students on their individual education plans; 
 89.27     (3) develop a community plan to include mission, goals, and 
 89.28  objectives, and an implementation plan to assure that transition 
 89.29  needs of individuals with disabilities are met; 
 89.30     (4) recommend changes or improvements in the community 
 89.31  system of transition services; 
 89.32     (5) exchange agency information such as appropriate data, 
 89.33  effectiveness studies, special projects, exemplary programs, and 
 89.34  creative funding of programs; and 
 89.35     (6) following procedures determined by the commissioner, 
 89.36  prepare a yearly summary assessing the progress of transition 
 90.1   services in the community including follow-up of individuals 
 90.2   with disabilities who were provided transition services to 
 90.3   determine postschool outcomes.  The summary must be disseminated 
 90.4   to all adult services agencies involved in the planning and to 
 90.5   the commissioner by October 1 of each year. 
 90.6      Subd. 21.  [AGENCY ACCESS TO NONPUBLIC DATA.] The 
 90.7   commissioner of administration must prepare a form and 
 90.8   disseminate guidelines for state agencies, political 
 90.9   subdivisions, and other responsible authorities to use to enable 
 90.10  a responsible authority to allow another responsible authority 
 90.11  access to data about a child with a disability that is 
 90.12  classified as not public.  The form and guidelines must be 
 90.13  consistent with section 13.05, subdivision 9, and federal law, 
 90.14  and are not subject to the rulemaking requirements under chapter 
 90.15  14. 
 90.16     Subd. 22.  [PARENT ADVISORY COMMITTEES.] Provisions of 
 90.17  Minnesota Rules, part 3525.1100, regarding parent advisory 
 90.18  committees apply to local boards or cooperative boards carrying 
 90.19  out the provisions of this section. 
 90.20     Sec. 4.  [120A.04] [INTERAGENCY EARLY CHILDHOOD 
 90.21  INTERVENTION SYSTEM.] 
 90.22     Subdivision 1.  [PURPOSE.] It is the policy of the state to 
 90.23  develop and implement comprehensive, coordinated, 
 90.24  multidisciplinary interagency programs of early intervention 
 90.25  services for children with disabilities and their families. 
 90.26     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
 90.27  the following terms have the meanings given them.  
 90.28     (a) "Coordinate" means to provide ready access to a 
 90.29  community's services and resources to meet child and family 
 90.30  needs.  
 90.31     (b) "Core early intervention services" means services that 
 90.32  are available at no cost to children and families.  These 
 90.33  services include: 
 90.34     (1) identification and referral; 
 90.35     (2) screening; 
 90.36     (3) evaluation; 
 91.1      (4) assessment; 
 91.2      (5) service coordination; 
 91.3      (6) special education and related services provided under 
 91.4   section 120.17, subdivision 3a, and United States Code, title 
 91.5   20, section 1401; and 
 91.6      (7) protection of parent and child rights by means of 
 91.7   procedural safeguards. 
 91.8      (c) "County board" means a county board established under 
 91.9   chapter 375. 
 91.10     (d) "Early intervention record" means any personally 
 91.11  identifiable information about a child or the child's family 
 91.12  that is generated by the early intervention system, and that 
 91.13  pertains to evaluation and assessment, development of an 
 91.14  individualized family service plan, and the delivery of early 
 91.15  intervention services. 
 91.16     (e) "Early intervention services" means services provided 
 91.17  in conformity with an individualized family service plan that 
 91.18  are designed to meet the special developmental needs of a child 
 91.19  eligible under Code of Federal Regulations, title 34, part 303, 
 91.20  and the needs of the child's family related to enhancing the 
 91.21  child's development and that are selected in collaboration with 
 91.22  the parent.  These services include core early intervention 
 91.23  services and additional early intervention services listed in 
 91.24  subdivision 4 and services defined in Code of Federal 
 91.25  Regulations, title 34, section 303, et seq. 
 91.26     (f) "Early intervention system" means the total effort in 
 91.27  the state to meet the needs of eligible children and their 
 91.28  families, including, but not limited to: 
 91.29     (1) any public agency in the state that receives funds 
 91.30  under the Individuals with Disabilities Education Act, United 
 91.31  States Code, title 20, sections 1471 to 1485 (Part H, Public Law 
 91.32  Number 102-119); 
 91.33     (2) other state and local agencies administering programs 
 91.34  involved in the provision of early intervention services, 
 91.35  including, but not limited to: 
 91.36     (i) the Maternal and Child Health program under title V of 
 92.1   the Social Security Act, United States Code, title 42, sections 
 92.2   701 to 709; 
 92.3      (ii) the Individuals with Disabilities Education Act, 
 92.4   United States Code, title 20, sections 1411 to 1420 (Part B); 
 92.5      (iii) medical assistance under the Social Security Act, 
 92.6   United States Code, title 42, section 1396 et seq.; 
 92.7      (iv) the Developmental Disabilities Assistance and Bill of 
 92.8   Rights Act, United States Code, title 42, sections 6021 to 6030 
 92.9   (Part B); and 
 92.10     (v) the Head Start Act, United States Code, title 42, 
 92.11  sections 9831 to 9852; and 
 92.12     (3) services provided by private groups or third-party 
 92.13  payers in conformity with an individualized family service plan. 
 92.14     (g) "Eligibility for Part H" means eligibility for early 
 92.15  childhood special education under section 120.03 and Minnesota 
 92.16  Rules, part 3525.2335, subpart 1, items A and B. 
 92.17     (h) "Facilitate payment" means helping families access 
 92.18  necessary public or private assistance that provides payment for 
 92.19  services required to meet needs identified in a service plan, 
 92.20  individual education plan (IEP), individual service plan (ISP), 
 92.21  or individualized family service plan (IFSP), according to time 
 92.22  frames required by the plan.  This may also include activities 
 92.23  to collect fees for services provided on a sliding fee basis, 
 92.24  where permitted by state law. 
 92.25     (i) "Individualized family service plan" or "IFSP" means a 
 92.26  written plan for providing services to a child and the child's 
 92.27  family.  
 92.28     (j) "Interagency child find systems" means activities 
 92.29  developed on an interagency basis with the involvement of 
 92.30  interagency early intervention committees and other relevant 
 92.31  community groups to actively seek out, identify, and refer 
 92.32  infants and young children with, or at risk of, disabilities, 
 92.33  and their families. 
 92.34     (k) "Local primary agency" means the agency designated 
 92.35  jointly by the school and county board under subdivision 4. 
 92.36     (l) "Parent" means the biological parent with parental 
 93.1   rights, adoptive parent, legal guardian, or surrogate parent. 
 93.2      (m) "Part H state plan" means the annual state plan 
 93.3   application approved by the federal government under the 
 93.4   Individuals with Disabilities Education Act, United States Code, 
 93.5   title 20, section 1471 et seq. (Part H, Public Law Number 
 93.6   102-119). 
 93.7      (n) "Pay for" means using federal, state, local, and 
 93.8   private dollars available for early intervention services. 
 93.9      (o) "Respite" means short-term, temporary care provided to 
 93.10  a child with a disability due to the temporary absence or need 
 93.11  for relief of the family member or members or primary care giver 
 93.12  normally providing the care. 
 93.13     (p) "State lead agency" means the state agency receiving 
 93.14  federal funds under the Individuals with Disabilities Education 
 93.15  Act, United States Code, title 20, section 1471 et seq. (Part H, 
 93.16  Public Law Number 102-119). 
 93.17     (q) "Surrogate parent" means a person appointed by the 
 93.18  local education agency to assure that the rights of the child to 
 93.19  early intervention services are protected. 
 93.20     Subd. 3.  [STATE INTERAGENCY COORDINATING COUNCIL.] An 
 93.21  interagency coordinating council of at least 17, but not more 
 93.22  than 25 members is established, in compliance with Public Law 
 93.23  Number 102-119, section 682.  The members must be appointed by 
 93.24  the governor.  Council members must elect the council chair.  
 93.25  The representative of the commissioner may not serve as the 
 93.26  chair.  The council must be composed of at least five parents, 
 93.27  including persons of color, of children with disabilities under 
 93.28  age 12, including at least three parents of a child with a 
 93.29  disability under age seven, five representatives of public or 
 93.30  private providers of services for children with disabilities 
 93.31  under age five, including a special education director, county 
 93.32  social service director, and a community health services or 
 93.33  public health nursing administrator, one member of the senate, 
 93.34  one member of the house of representatives, one representative 
 93.35  of teacher preparation programs in early childhood-special 
 93.36  education or other preparation programs in early childhood 
 94.1   intervention, at least one representative of advocacy 
 94.2   organizations for children with disabilities under age five, one 
 94.3   physician who cares for young children with special health care 
 94.4   needs, one representative each from the commissioners of 
 94.5   commerce, children, families, and learning, health, human 
 94.6   services, and economic security, and a representative from 
 94.7   Indian health services or a tribal council.  Section 15.059, 
 94.8   subdivisions 2 to 5, apply to the council.  The council must 
 94.9   meet at least quarterly.  
 94.10     The council must address methods of implementing the state 
 94.11  policy of developing and implementing comprehensive, 
 94.12  coordinated, multidisciplinary interagency programs of early 
 94.13  intervention services for children with disabilities and their 
 94.14  families. 
 94.15     The duties of the council include recommending policies to 
 94.16  ensure a comprehensive and coordinated system of all state and 
 94.17  local agency services for children under age five with 
 94.18  disabilities and their families.  The policies must address how 
 94.19  to incorporate each agency's services into a unified state and 
 94.20  local system of multidisciplinary assessment practices, 
 94.21  individual intervention plans, comprehensive systems to find 
 94.22  children in need of services, methods to improve public 
 94.23  awareness, and assistance in determining the role of interagency 
 94.24  early intervention committees.  
 94.25     By June 1, the council must recommend to the governor and 
 94.26  the commissioners of children, families, and learning, health, 
 94.27  human services, commerce, and economic security policies for a 
 94.28  comprehensive and coordinated system. 
 94.29     Notwithstanding any other law to the contrary, the state 
 94.30  interagency coordinating council expires on June 30, 1997. 
 94.31     Subd. 4.  [RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL 
 94.32  BOARDS.] (a) It is the joint responsibility of county boards and 
 94.33  school boards to coordinate, provide, and pay for appropriate 
 94.34  services, and to facilitate payment for services from public and 
 94.35  private sources.  Appropriate services for children eligible 
 94.36  under section 120.03 must be determined in consultation with 
 95.1   parents, physicians, and other educational, medical, health, and 
 95.2   human services providers.  The services provided must be in 
 95.3   conformity with an IFSP for each eligible infant and toddler 
 95.4   from birth through age two and its family, or an individual 
 95.5   education plan (IEP) or individual service plan (ISP) for each 
 95.6   eligible child ages three through four.  
 95.7      (b) Appropriate services include family education and 
 95.8   counseling, home visits, occupational and physical therapy, 
 95.9   speech pathology, audiology, psychological services, special 
 95.10  instruction, nursing, respite, nutrition, assistive technology, 
 95.11  transportation and related costs, social work, vision services, 
 95.12  case management including service coordination under subdivision 
 95.13  8, medical services for diagnostic and evaluation purposes, 
 95.14  early identification, and screening, assessment, and health 
 95.15  services necessary to enable children with disabilities to 
 95.16  benefit from early intervention services. 
 95.17     (c) School and county boards must coordinate early 
 95.18  intervention services.  In the absence of agreements established 
 95.19  according to subdivision 14, service responsibilities for 
 95.20  children birth through age two are as follows: 
 95.21     (1) school boards must provide, pay for, and facilitate 
 95.22  payment for special education and related services required 
 95.23  under section 120.17, subdivision 2; 
 95.24     (2) county boards must provide, pay for, and facilitate 
 95.25  payment for noneducational services of social work, psychology, 
 95.26  transportation and related costs, nursing, respite, and 
 95.27  nutrition services not required under clause (1). 
 95.28     (d) School and county boards may develop an interagency 
 95.29  agreement according to subdivision 13 to establish agency 
 95.30  responsibility that assures early intervention services are 
 95.31  coordinated, provided, paid for, and that payment is facilitated 
 95.32  from public and private sources. 
 95.33     (e) County and school boards must jointly determine the 
 95.34  primary agency in this cooperative effort and must notify the 
 95.35  commissioner of the state lead agency of their decision. 
 95.36     Subd. 5.  [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) 
 96.1   A school district, group of districts, or special education 
 96.2   cooperative, in cooperation with the health and human service 
 96.3   agencies located in the county or counties in which the district 
 96.4   or cooperative is located, must establish an interagency early 
 96.5   intervention committee for children with disabilities under age 
 96.6   five and their families.  Committees must include 
 96.7   representatives of local and regional health, education, and 
 96.8   county human service agencies, county boards, school boards, 
 96.9   early childhood family education programs, parents of young 
 96.10  children with disabilities under age 12, current service 
 96.11  providers, and may also include representatives from other 
 96.12  private or public agencies.  The committee must elect a chair 
 96.13  from among its members and must meet at least quarterly. 
 96.14     (b) The committee must develop and implement interagency 
 96.15  policies and procedures concerning the following ongoing duties: 
 96.16     (1) develop public awareness systems designed to inform 
 96.17  potential recipient families of available programs and services; 
 96.18     (2) implement interagency child find systems designed to 
 96.19  actively seek out, identify, and refer infants and young 
 96.20  children with, or at risk of, disabilities and their families; 
 96.21     (3) establish and evaluate the identification, referral, 
 96.22  child and family assessment systems, procedural safeguard 
 96.23  process, and community learning systems to recommend, where 
 96.24  necessary, alterations and improvements; 
 96.25     (4) assure the development of individualized family service 
 96.26  plans for all eligible infants and toddlers with disabilities 
 96.27  from birth through age two, and their families, and individual 
 96.28  education plans and individual service plans when necessary to 
 96.29  appropriately serve children with disabilities, age three and 
 96.30  older, and their families and recommend assignment of financial 
 96.31  responsibilities to the appropriate agencies; 
 96.32     (5) encourage agencies to develop individual family service 
 96.33  plans for children with disabilities, age three and older; 
 96.34     (6) implement a process for assuring that services involve 
 96.35  cooperating agencies at all steps leading to individualized 
 96.36  programs; 
 97.1      (7) facilitate the development of a transitional plan if a 
 97.2   service provider is not recommended to continue to provide 
 97.3   services; 
 97.4      (8) identify the current services and funding being 
 97.5   provided within the community for children with disabilities 
 97.6   under age five and their families; 
 97.7      (9) develop a plan for the allocation and expenditure of 
 97.8   additional state and federal early intervention funds under 
 97.9   United States Code, title 20, section 1471 et seq. (Part H, 
 97.10  Public Law Number 102-119) and United States Code, title 20, 
 97.11  section 631, et seq. (Chapter I, Public Law Number 89-313); and 
 97.12     (10) develop a policy that is consistent with section 
 97.13  13.05, subdivision 9, and federal law to enable a member of an 
 97.14  interagency early intervention committee to allow another member 
 97.15  access to data classified as not public. 
 97.16     (c) The local committee must also: 
 97.17     (1) participate in needs assessments and program planning 
 97.18  activities conducted by local social service, health and 
 97.19  education agencies for young children with disabilities and 
 97.20  their families; 
 97.21     (2) review and comment on the early intervention section of 
 97.22  the total special education system for the district, the county 
 97.23  social service plan, the section or sections of the community 
 97.24  health services plan that address needs of and service 
 97.25  activities targeted to children with special health care needs, 
 97.26  and the section of the maternal and child health special project 
 97.27  grants that address needs of and service activities targeted to 
 97.28  children with chronic illness and disabilities; and 
 97.29     (3) prepare a yearly summary on the progress of the 
 97.30  community in serving young children with disabilities, and their 
 97.31  families, including the expenditure of funds, the identification 
 97.32  of unmet service needs identified on the individual family 
 97.33  services plan and other individualized plans, and local, state, 
 97.34  and federal policies impeding the implementation of this section.
 97.35     (d) The summary must be organized following a format 
 97.36  prescribed by the commissioner of the state lead agency and must 
 98.1   be submitted to each of the local agencies and to the state 
 98.2   interagency coordinating council by October 1 of each year. 
 98.3      The departments of children, families, and learning, 
 98.4   health, and human services must provide assistance to the local 
 98.5   agencies in developing cooperative plans for providing services. 
 98.6      Subd. 6.  [LOCAL PRIMARY AGENCY.] (a) The local primary 
 98.7   agency must: 
 98.8      (1) facilitate the development of annual fund requests that 
 98.9   identify arrangements with other local and regional agencies 
 98.10  providing services as part of the state's early childhood 
 98.11  intervention system and that result in service availability on a 
 98.12  year-round basis, as necessary; 
 98.13     (2) administer funds received through the annual fund 
 98.14  request; 
 98.15     (3) provide oversight for data collection efforts; 
 98.16     (4) facilitate completion of interagency early intervention 
 98.17  committee duties as indicated in subdivision 5; 
 98.18     (5) request mediation from the state lead agency, if 
 98.19  necessary; 
 98.20     (6) request assistance from the state lead agency when 
 98.21  disputes between agencies cannot be resolved within 20 calendar 
 98.22  days; and 
 98.23     (7) receive written requests from parents for matters that 
 98.24  may be resolved through due process hearings. 
 98.25     (b) When the local primary agency is not an education 
 98.26  agency, resources distributed under the early intervention fund 
 98.27  must be transferred from a local educational agency to a 
 98.28  noneducation agency using a state provided contract.  A local 
 98.29  primary agency may budget for indirect costs at an amount not to 
 98.30  exceed five percent of the amount allocated from the early 
 98.31  intervention fund. 
 98.32     Subd. 7.  [INDIVIDUALIZED FAMILY SERVICE PLAN.] (a) A team 
 98.33  must participate in IFSP meetings to develop the IFSP.  The team 
 98.34  must include:  
 98.35     (1) a parent or parents of the child; 
 98.36     (2) other family members, as requested by the parent, if 
 99.1   feasible to do so; 
 99.2      (3) an advocate or person outside of the family, if the 
 99.3   parent requests that the person participate; 
 99.4      (4) the service coordinator who has been working with the 
 99.5   family since the initial referral, or who has been designated by 
 99.6   the public agency to be responsible for implementation of the 
 99.7   IFSP; and 
 99.8      (5) a person or persons involved in conducting evaluations 
 99.9   and assessments.  
 99.10     (b) The IFSP must include: 
 99.11     (1) information about the child's developmental status; 
 99.12     (2) family information, with the consent of the family; 
 99.13     (3) major outcomes expected to be achieved by the child and 
 99.14  the family that include the criteria, procedures, and timelines; 
 99.15     (4) specific early intervention services necessary to meet 
 99.16  the unique needs of the child and the family to achieve the 
 99.17  outcomes; 
 99.18     (5) payment arrangements, if any; 
 99.19     (6) medical and other services that the child needs, but 
 99.20  that are not required under the Individual with Disabilities 
 99.21  Education Act, United States Code, title 20, section 1471 et 
 99.22  seq. (Part H, Public Law Number 102-119) including funding 
 99.23  sources to be used in paying for those services and the steps 
 99.24  that will be taken to secure those services through public or 
 99.25  private sources; 
 99.26     (7) dates and duration of early intervention services; 
 99.27     (8) name of the service coordinator; 
 99.28     (9) steps to be taken to support a child's transition from 
 99.29  early intervention services to other appropriate services; and 
 99.30     (10) signature of the parent and authorized signatures of 
 99.31  the agencies responsible for providing, paying for, or 
 99.32  facilitating payment, or any combination of these, for early 
 99.33  intervention services. 
 99.34     Subd. 8.  [SERVICE COORDINATION.] (a) The team developing 
 99.35  the IFSP under subdivision 7 must select a service coordinator 
 99.36  to carry out service coordination activities on an interagency 
100.1   basis.  Service coordination must actively promote a family's 
100.2   capacity and competency to identify, obtain, coordinate, 
100.3   monitor, and evaluate resources and services to meet the 
100.4   family's needs.  Service coordination activities include: 
100.5      (1) coordinating the performance of evaluations and 
100.6   assessments; 
100.7      (2) facilitating and participating in the development, 
100.8   review, and evaluation of individualized family service plans; 
100.9      (3) assisting families in identifying available service 
100.10  providers; 
100.11     (4) coordinating and monitoring the delivery of available 
100.12  services; 
100.13     (5) informing families of the availability of advocacy 
100.14  services; 
100.15     (6) coordinating with medical, health, and other service 
100.16  providers; 
100.17     (7) facilitating the development of a transition plan at 
100.18  least six months before the time the child is no longer eligible 
100.19  for early intervention services, if appropriate; 
100.20     (8) managing the early intervention record and submitting 
100.21  additional information to the local primary agency at the time 
100.22  of periodic review and annual evaluations; and 
100.23     (9) notifying a local primary agency when disputes between 
100.24  agencies impact service delivery required by an IFSP. 
100.25     (b) A service coordinator must be knowledgeable about 
100.26  children and families receiving services under this section, 
100.27  requirements of state and federal law, and services available in 
100.28  the interagency early childhood intervention system. 
100.29     Subd. 9.  [EARLY INTERVENTION RESPITE.] The provision of 
100.30  respite services for an eligible child and family must be 
100.31  determined in the context of the IFSP development based on the 
100.32  individual needs of the child and family and with consideration 
100.33  given to the following criteria: 
100.34     (1) severity of the child's disability and needs; 
100.35     (2) potential risk of out-of-home placement for the child 
100.36  if respite services are not provided; 
101.1      (3) parental lack of access to informal support systems, 
101.2   including, but not limited to, extended family, supportive 
101.3   friends, and community supports; 
101.4      (4) presence of factors known to increase family stress, 
101.5   including, but not limited to, family size and presence of 
101.6   another child or family member with a disability; 
101.7      (5) the availability of other public services provided to 
101.8   the family that assist the parent or primary caretaker in 
101.9   obtaining relief from caretaking responsibilities; and 
101.10     (6) the perceived and expressed level of need for respite 
101.11  services by the parent. 
101.12     Counties are encouraged to make a variety of respite 
101.13  service models available, which may include in or out-of-home 
101.14  respite, family reimbursement programs, and parent-to-parent 
101.15  respite projects. 
101.16     Subd. 10.  [EARLY INTERVENTION FLOW-THROUGH DOLLARS.] (a) 
101.17  The state lead agency must administer the early intervention 
101.18  account that consists of federal allocations.  The Part H state 
101.19  plan must state the amount of federal resources in the early 
101.20  intervention account available for use by local agencies.  The 
101.21  state lead agency must distribute the funds to the local primary 
101.22  agency based on a December 1 count of the prior year of Part H 
101.23  eligible children for the following purposes:  
101.24     (1) as provided in Code of Federal Regulations, title 34, 
101.25  part 303.425, to arrange for payment for early intervention 
101.26  services not elsewhere available, or to pay for services during 
101.27  the pendency of a conflict procedure, including mediation, 
101.28  complaints, due process hearings, and interagency disputes; and 
101.29     (2) to support interagency child find system activities.  
101.30     (b) The priority purpose for this fund is paragraph (a), 
101.31  clause (1).  The local primary agency must reallocate resources 
101.32  from the early intervention fund as necessary in order to meet 
101.33  this priority. 
101.34     (c) Nothing in this subdivision limits the state lead 
101.35  agency's authority to allocate discretionary federal funds for 
101.36  any purpose consistent with the Individuals with Disabilities 
102.1   Education Act, United States Code, title 20, sections 1471 to 
102.2   1485 (Part H, Public Law Number 102-119) and regulations adopted 
102.3   under United States Code, title 20, sections 1471 to 1485. 
102.4      (d) Each county board must continue to spend for early 
102.5   intervention services under subdivision 2, paragraph (e), an 
102.6   amount equal to the total county expenditure during the period 
102.7   from January 1, 1993, to December 31, 1993, for these same 
102.8   services.  The commissioner of human services, in consultation 
102.9   with the commissioner of health and the association of Minnesota 
102.10  counties, must establish a process for determining base year 
102.11  1993 expenditures. 
102.12     (e) County boards that have submitted base year 1993 
102.13  expenditures as required under paragraph (d) are not required to 
102.14  pay any increased cost over the base year 1993 for early 
102.15  intervention services resulting from implementing the early 
102.16  intervention system.  Increased costs to county boards may be 
102.17  paid for with early intervention flow-through dollars. 
102.18     (f) School boards are not required to pay for services 
102.19  defined in subdivision 4, paragraph (c), clause (2). 
102.20     Subd. 11.  [PAYMENT FOR SERVICES.] Core early intervention 
102.21  services must be provided at public expense with no cost to 
102.22  parents.  Parents must be requested to assist in the cost of 
102.23  additional early intervention services by using third-party 
102.24  payment sources and applying for available resources.  Payment 
102.25  structures permitted under state law must be used to pay for 
102.26  additional early intervention services.  Parental financial 
102.27  responsibility must be clearly defined in the IFSP.  A parent's 
102.28  inability to pay must not prohibit a child from receiving needed 
102.29  early intervention services. 
102.30     Subd. 12.  [PAYOR OF LAST RESORT.] (a) For fiscal years 
102.31  1995 and 1996, the state lead agency must establish a reserve 
102.32  account from federal sources to pay for services in dispute or 
102.33  to pay for early intervention services when local agencies have 
102.34  exhausted all other public and private funds available for Part 
102.35  H eligible children. 
102.36     (b) The lead agency must report to the legislature by 
103.1   January 1, 1996, regarding county board expenditures for early 
103.2   intervention services and the continuing need and funding of the 
103.3   reserve account.  
103.4      Subd. 13.  [MAINTENANCE OF EFFORT.] A county human services 
103.5   agency or county board must continue to provide services set 
103.6   forth in their county social service agency plan.  The county 
103.7   human services agency or county board must serve children with 
103.8   disabilities under age five and their families, or as specified 
103.9   in the IFSP for children with disabilities, birth through age 
103.10  two, or the individual service plan of each child.  Special 
103.11  instruction and related services for which a child with a 
103.12  disability is eligible under this section are the responsibility 
103.13  of the local school board.  It is the joint responsibility of 
103.14  county boards and school boards to coordinate, provide, and pay 
103.15  for all appropriate services required in subdivision 11b and to 
103.16  facilitate payment for services from public and private sources. 
103.17     Subd. 14.  [LOCAL INTERAGENCY AGREEMENTS.] School boards 
103.18  and the county board may enter into agreements to cooperatively 
103.19  serve and provide funding for children with disabilities, under 
103.20  age five, and their families within a specified geographic area. 
103.21     The local interagency agreement must address, at a minimum, 
103.22  the following issues: 
103.23     (1) responsibilities of local agencies on local interagency 
103.24  early intervention committees (IEIC's), consistent with 
103.25  subdivision 12; 
103.26     (2) assignment of financial responsibility for early 
103.27  intervention services; 
103.28     (3) methods to resolve intraagency and interagency 
103.29  disputes; 
103.30     (4) identification of current resources and recommendations 
103.31  about the allocation of additional state and federal early 
103.32  intervention funds under the auspices of United States Code, 
103.33  title 20, section 1471 et seq. (Part H, Public Law Number 
103.34  102-119) and United States Code, title 20, section 631, et seq. 
103.35  (Chapter I, Public Law Number 89-313); 
103.36     (5) data collection; and 
104.1      (6) other components of the local early intervention system 
104.2   consistent with Public Law Number 102-119. 
104.3      Subd. 15.  [THIRD-PARTY PAYMENT.] Nothing in this section 
104.4   relieves an insurer or similar third party from an otherwise 
104.5   valid obligation to pay, or changes the validity of an 
104.6   obligation to pay, for services rendered to a child with a 
104.7   disability, and the child's family. 
104.8      Subd. 16.  [BENEFITS COORDINATION.] The department of 
104.9   health must provide technical assistance in a timely manner to 
104.10  service coordinators, parents of children with disabilities, and 
104.11  agencies in situations requiring the coordination of health 
104.12  insurance benefits, or the identification of third-party payor 
104.13  responsibilities to provide necessary health benefits. 
104.14     Subd. 17.  [PROCEDURAL SAFEGUARDS; PARENT AND CHILD 
104.15  RIGHTS.] (a) This subdivision applies to local school and county 
104.16  boards for children from birth through age two who are eligible 
104.17  for Part H, Public Law Number 102-119, and their families.  This 
104.18  subdivision must be consistent with the Individuals with 
104.19  Disabilities Education Act, United States Code, title 20, 
104.20  sections 1471 to 1485 (Part H, Public Law Number 102-119), 
104.21  regulations adopted under United States Code, title 20, sections 
104.22  1471 to 1485, and this section. 
104.23     (b) A parent has the right to: 
104.24     (1) inspect and review early intervention records; 
104.25     (2) prior written notice of a proposed action in the 
104.26  parents' native language unless it is clearly not feasible to do 
104.27  so; 
104.28     (3) give consent to any proposed action; 
104.29     (4) selectively accept or decline any early intervention 
104.30  service; and 
104.31     (5) resolve issues regarding the identification, 
104.32  evaluation, or placement of the child, or the provision of 
104.33  appropriate early intervention services to the child and the 
104.34  child's family through an impartial due process hearing pursuant 
104.35  to subdivision 21. 
104.36     (c) The eligible child has the right to have a surrogate 
105.1   parent appointed by a school district as required by section 
105.2   120.17, subdivision 3. 
105.3      Subd. 18.  [MEDIATION PROCEDURE.] The commissioner of the 
105.4   state lead agency must use federal funds to provide mediation 
105.5   for the activities in paragraphs (a) and (b). 
105.6      (a) A parent may resolve a dispute regarding issues in 
105.7   subdivision 17, paragraph (b), clause (5), through mediation.  
105.8   If the parent chooses mediation, all public agencies involved in 
105.9   the dispute must participate in the mediation process.  The 
105.10  parent and the public agencies must complete the mediation 
105.11  process within 20 calendar days of the date the commissioner 
105.12  receives a parent's written request for mediation.  The 
105.13  mediation process may not be used to delay a parent's right to a 
105.14  due process hearing.  The resolution of the mediation is not 
105.15  binding on any party. 
105.16     (b) The local primary agency may request mediation on 
105.17  behalf of involved agencies when there are disputes between 
105.18  agencies regarding responsibilities to coordinate, provide, pay 
105.19  for, or facilitate payment for early intervention services. 
105.20     Subd. 19.  [COMPLAINT PROCEDURE.] (a) An individual or 
105.21  organization may file a written signed complaint with the 
105.22  commissioner of the state lead agency alleging that one or more 
105.23  requirements of the Code of Federal Regulations, title 34, part 
105.24  303, is not being met.  The complaint must include:  
105.25     (1) a statement that the state has violated the Individuals 
105.26  with Disabilities Education Act, United States Code, title 20, 
105.27  section 1471 et seq. (Part H, Public Law Number 102-119) or Code 
105.28  of Federal Regulations, title 34, section 303; and 
105.29     (2) the facts on which the complaint is based. 
105.30     (b) The commissioner of the state lead agency must receive 
105.31  and coordinate with other state agencies the review and 
105.32  resolution of a complaint within 60 calendar days according to 
105.33  the state interagency agreement required under subdivision 23. 
105.34     Subd. 20.  [INTERAGENCY DISPUTE PROCEDURE.] (a) A dispute 
105.35  between a school board and a county board that is responsible 
105.36  for implementing the provisions of subdivision 4 regarding early 
106.1   identification, child and family assessment, service 
106.2   coordination, and IFSP development and implementation must be 
106.3   resolved according to this subdivision when the dispute involves 
106.4   services provided to children and families eligible under the 
106.5   Individuals with Disabilities Education Act, United States Code, 
106.6   title 20, section 1471 et seq. (Part H, Public Law Number 
106.7   102-119). 
106.8      (b) A dispute occurs when the school board and county board 
106.9   are unable to agree as to who is responsible to coordinate, 
106.10  provide, pay for, or facilitate payment for services from public 
106.11  and private sources. 
106.12     (c) Written and signed disputes must be filed with the 
106.13  local primary agency. 
106.14     (d) The local primary agency must attempt to resolve the 
106.15  matter with the involved school board and county board and may 
106.16  request mediation from the commissioner of the state lead agency 
106.17  for this purpose. 
106.18     (e) When interagency disputes have not been resolved within 
106.19  30 calendar days, the local primary agency must request the 
106.20  commissioner of the state lead agency to review the matter with 
106.21  the commissioners of health and human services and make a 
106.22  decision.  The commissioner must provide a consistent process 
106.23  for reviewing those procedures.  The commissioners' decision is 
106.24  binding subject to the right of an aggrieved party to appeal to 
106.25  the state court of appeals. 
106.26     (f) The local primary agency must ensure that eligible 
106.27  children and their families receive early intervention services 
106.28  during resolution of a dispute.  While a local dispute is 
106.29  pending, the local primary agency must either assign financial 
106.30  responsibility to an agency or pay for the service from the 
106.31  early intervention account under subdivision 10.  If in 
106.32  resolving the dispute, it is determined that the assignment of 
106.33  financial responsibility was inappropriate, the responsibility 
106.34  for payment must be reassigned to the appropriate agency and the 
106.35  responsible agency must make arrangements for reimbursing any 
106.36  expenditures incurred by the agency originally assigned 
107.1   financial responsibility. 
107.2      Subd. 21.  [DUE PROCESS HEARINGS.] The procedures for due 
107.3   process hearings and appeals must be the same as those in 
107.4   section 120.17, subdivision 3b.  The responsibility for payment 
107.5   of costs and conducting due process hearings and appeals shall 
107.6   be allocated to the appropriate agency in accordance with 
107.7   subdivisions 5, 14, and 17.  
107.8      Subd. 22.  [DATA COLLECTION.] By July 1, 1994, the 
107.9   departments of children, families, and learning, health, and 
107.10  human services must develop a plan to collect data about which 
107.11  early intervention services are being provided to children and 
107.12  families eligible under the Individuals with Disabilities 
107.13  Education Act, United States Code, title 20, section 1471 et 
107.14  seq. (Part H, Public Law Number 102-119) and sources of payment 
107.15  for those services. 
107.16     Subd. 23.  [STATE INTERAGENCY AGREEMENT.] (a) The 
107.17  commissioners of the departments of children, families, and 
107.18  learning, health, and human services must enter into an 
107.19  agreement to implement this section and Part H, Public Law 
107.20  Number 102-119, and as required by Code of Federal Regulations, 
107.21  title 34, section 303.523, to promote the development and 
107.22  implementation of interagency, coordinated, multidisciplinary 
107.23  state and local early childhood intervention service systems for 
107.24  serving eligible young children with disabilities, birth through 
107.25  age two, and their families.  The agreement must be reviewed 
107.26  annually. 
107.27     (b) The state interagency agreement must outline at a 
107.28  minimum the conditions, procedures, purposes, and 
107.29  responsibilities of the participating state and local agencies 
107.30  for the following: 
107.31     (1) membership, roles, and responsibilities of a state 
107.32  interagency committee for the oversight of priorities and budget 
107.33  allocations under Part H, Public Law Number 102-119, and other 
107.34  state allocations for this program; 
107.35     (2) child find; 
107.36     (3) establishment of local interagency agreements; 
108.1      (4) review by a state interagency committee of the 
108.2   allocation of additional state and federal early intervention 
108.3   funds by local agencies; 
108.4      (5) fiscal responsibilities of the state and local 
108.5   agencies; 
108.6      (6) intraagency and interagency dispute resolution; 
108.7      (7) payor of last resort; 
108.8      (8) maintenance of effort; 
108.9      (9) procedural safeguards, including mediation; 
108.10     (10) complaint resolution; 
108.11     (11) quality assurance; 
108.12     (12) data collection; 
108.13     (13) an annual summary to the state interagency 
108.14  coordinating council regarding conflict resolution activities 
108.15  including disputes, due process hearings, and complaints; and 
108.16     (14) other components of the state and local early 
108.17  intervention system consistent with Public Law Number 102-119. 
108.18  Written materials must be developed for parents, IEIC's, and 
108.19  local service providers that describe procedures developed under 
108.20  this section as required by Code of Federal Regulations, title 
108.21  34, section 303. 
108.22     Sec. 5.  [120A.05] [LEGISLATIVE COMMITMENT TO 
108.23  CONCILIATION.] 
108.24     Subdivision 1.  [POLICY STATEMENT.] The legislature finds 
108.25  that conciliation conferences pursuant to section 120.17 serve 
108.26  better than formal hearings to promote communications between 
108.27  parents and school staff and to reach prompt, shared decisions 
108.28  about educational programs for children with a disability.  
108.29  Further, the legislature urges the United States Department of 
108.30  Education and the United States Office of Civil Rights to 
108.31  acknowledge that the conciliation conference process violates no 
108.32  federal statute or regulation.  
108.33     Subd. 2.  [STATE PLAN.] The state board shall not adopt any 
108.34  provision in the state plan for special education that reduces 
108.35  the opportunities for parents and school districts to resolve 
108.36  their differences through conciliation.  
109.1      Sec. 6.  [120A.06] [ALTERNATIVE DELIVERY OF SPECIALIZED 
109.2   INSTRUCTIONAL SERVICES.] 
109.3      Subdivision 1.  [COMMISSIONER APPROVAL.] The commissioner 
109.4   may approve applications from districts to provide prevention 
109.5   services as an alternative to special education and other 
109.6   compensatory programs during three school years.  A district 
109.7   with an approved program may provide instruction and services in 
109.8   a regular education classroom to eligible pupils.  Pupils 
109.9   eligible to participate in the program are low-performing pupils 
109.10  who, based on documented experience, the professional judgment 
109.11  of a classroom teacher, or a team of licensed professionals, 
109.12  would eventually qualify for special education instruction or 
109.13  related services under section 120.17 if the intervention 
109.14  services authorized by this section were unavailable.  Pupils 
109.15  may be provided services during extended school days and 
109.16  throughout the entire year.  
109.17     Subd. 2.  [APPLICATION CONTENTS.] The application must set 
109.18  forth: 
109.19     (1) instructional services available to eligible pupils 
109.20  under section 124.311, subdivision 3, and pupils with a 
109.21  disability under section 120.03; 
109.22     (2) criteria to select pupils for the program and the 
109.23  assessment procedures to determine eligibility; 
109.24     (3) involvement in the program of parents of pupils in the 
109.25  program, parent advocates, and community special education 
109.26  advocates; 
109.27     (4) accounting procedures to document that federal special 
109.28  education money is used to supplement or increase the level of 
109.29  special education instruction and related services provided with 
109.30  state and local revenue, but in no case to supplant the state 
109.31  and local revenue, and that districts are expending at least the 
109.32  amount for special education instruction and related services 
109.33  required by federal law; 
109.34     (5) the role of regular and special education teachers in 
109.35  planning and implementing the program; and 
109.36     (6) other information requested by the commissioner.  
110.1      Subd. 3.  [EVALUATION.] The application must also set forth 
110.2   the review and evaluation procedures to be used by the district 
110.3   addressing at least the following:  
110.4      (1) the number of pupils with and without a disability 
110.5   served; 
110.6      (2) the impact of the program on the academic progress and 
110.7   social adjustment of the pupils; 
110.8      (3) the level of satisfaction teachers, parents, and pupils 
110.9   have with the program; 
110.10     (4) the effect of the program on the number of referrals 
110.11  for special education, federal chapter 1, and other programs; 
110.12     (5) the amount of time spent by teachers on procedural 
110.13  activities; 
110.14     (6) the increased amount of time the pupil is in a regular 
110.15  education classroom; and 
110.16     (7) cost implications.  
110.17     Subd. 4.  [REVIEW FOR EXCESS EXPENDITURES.] The 
110.18  commissioner must review each application to determine whether 
110.19  the personnel, equipment, supplies, residential aid, and summer 
110.20  school are necessary to meet the district's obligation to 
110.21  provide special instruction and services to children with a 
110.22  disability according to section 120.17.  The commissioner may 
110.23  not approve revenue for any expenditures determined to be 
110.24  unnecessary.  
110.25     Subd. 5.  [ANNUAL REPORT.] Each year the district must 
110.26  submit to the commissioner a report containing the information 
110.27  described in subdivision 3 and section 124.311, subdivision 7.  
110.28     Subd. 6.  [PUPIL RIGHTS.] A pupil participating in the 
110.29  program must be individually evaluated according to the pupil's 
110.30  actual abilities and needs.  A pupil who is eligible for 
110.31  services under section 120.17 is entitled to procedural 
110.32  protections provided under Public Law Number 94-142 in any 
110.33  matter that affects the identification, evaluation, placement, 
110.34  or change in placement of a pupil.  The district must ensure the 
110.35  protection of a pupil's civil rights, provide equal educational 
110.36  opportunities, and prohibit discrimination.  Failure to comply 
111.1   with this subdivision will at least cause a district to become 
111.2   ineligible to participate in the program.  Notwithstanding rules 
111.3   of the state board, a pupil's rights under this section cannot 
111.4   be waived by the state board. 
111.5      Sec. 7.  [120A.07] [PLACEMENT OF CHILDREN WITHOUT 
111.6   DISABILITIES; EDUCATION AND TRANSPORTATION.] 
111.7      The responsibility for providing instruction and 
111.8   transportation for a pupil without a disability who has a 
111.9   short-term or temporary physical or emotional illness or 
111.10  disability, as determined by the standards of the state board, 
111.11  and who is temporarily placed for care and treatment for that 
111.12  illness or disability, must be determined as provided in this 
111.13  section.  
111.14     (a) The school district of residence of the pupil is the 
111.15  district in which the pupil's parent or guardian resides or the 
111.16  district designated by the commissioner if neither parent nor 
111.17  guardian is living within the state.  
111.18     (b) Before the placement of a pupil for care and treatment, 
111.19  the district of residence must be notified and provided an 
111.20  opportunity to participate in the placement decision.  When an 
111.21  immediate emergency placement is necessary and time does not 
111.22  permit resident district participation in the placement 
111.23  decision, the district in which the pupil is temporarily placed, 
111.24  if different from the district of residence, must notify the 
111.25  district of residence of the emergency placement within 15 days 
111.26  of the placement.  
111.27     (c) When a pupil without a disability is temporarily placed 
111.28  for care and treatment in a day program and the pupil continues 
111.29  to live within the district of residence during the care and 
111.30  treatment, the district of residence must provide instruction 
111.31  and necessary transportation for the pupil.  The district may 
111.32  provide the instruction at a school within the district of 
111.33  residence, at the pupil's residence, or in the case of a 
111.34  placement outside of the resident district, in the district in 
111.35  which the day treatment program is located by paying tuition to 
111.36  that district.  The district of placement may contract with a 
112.1   facility to provide instruction by teachers licensed by the 
112.2   state board of teaching.  
112.3      (d) When a pupil without a disability is temporarily placed 
112.4   in a residential program for care and treatment, the district in 
112.5   which the pupil is placed must provide instruction for the pupil 
112.6   and necessary transportation while the pupil is receiving 
112.7   instruction, and in the case of a placement outside of the 
112.8   district of residence, the nonresident district must bill the 
112.9   district of residence for the actual cost of providing the 
112.10  instruction for the regular school year and for summer school, 
112.11  excluding transportation costs.  When a pupil without a 
112.12  disability is temporarily placed in a residential program 
112.13  outside the district of residence, the administrator of the 
112.14  court placing the pupil must send timely written notice of the 
112.15  placement to the district of residence.  The district of 
112.16  placement may contract with a residential facility to provide 
112.17  instruction by teachers licensed by the state board of teaching. 
112.18     (e) The district of residence must include the pupil in its 
112.19  residence count of pupil units and pay tuition as provided in 
112.20  section 124.18 to the district providing the instruction.  
112.21  Transportation costs must be paid by the district providing the 
112.22  transportation and the state must pay transportation aid to that 
112.23  district.  For purposes of computing state transportation aid, 
112.24  pupils governed by this subdivision must be included in the 
112.25  disabled transportation category.  
112.26     Sec. 8.  [120A.08] [RESIDENTIAL TREATMENT FACILITIES; 
112.27  EDUCATION.] 
112.28     Subdivision 1.  [EDUCATIONAL SCREENING.] Secure and 
112.29  nonsecure residential treatment facilities licensed by the 
112.30  department of human services or the department of corrections 
112.31  must screen each juvenile who is held in a facility for at least 
112.32  72 hours, excluding weekends or holidays, using an educational 
112.33  screening tool identified by the department, unless the facility 
112.34  determines that the juvenile has a current individual education 
112.35  plan and obtains a copy of it.  The department must develop or 
112.36  identify an education screening tool for use in residential 
113.1   facilities.  The tool must include a life skills development 
113.2   component. 
113.3      Subd. 2.  [RULEMAKING.] The state board may, in 
113.4   consultation with the commissioners of corrections and human 
113.5   services, make or amend rules relating to education programs in 
113.6   residential treatment facilities, if necessary, to implement 
113.7   this section. 
113.8      Sec. 9.  [120A.09] [SPECIAL EDUCATION DIRECTOR.] 
113.9      The authority for the selection and employment of the 
113.10  director of a special education cooperative established pursuant 
113.11  to section 120.17 or 471.59 is vested in the governing board of 
113.12  the cooperative.  Notwithstanding the provisions of section 
113.13  125.12, subdivision 6a or 6b, no individual shall have a right 
113.14  to employment as a director based on seniority or order of 
113.15  employment by the cooperative.  
113.16     Sec. 10.  [120A.10] [INTERAGENCY OFFICE IN TRANSITION 
113.17  SERVICES.] 
113.18     The commissioner must establish an interagency office on 
113.19  transition services to:  
113.20     (1) gather and coordinate data on transition services for 
113.21  secondary age pupils with a disability; 
113.22     (2) provide information, consultation, and technical 
113.23  assistance to state and local agencies involved in the delivery 
113.24  of services to pupils with a disability in transition from 
113.25  secondary school programs to employment and post-secondary 
113.26  training programs; 
113.27     (3) assist agencies in establishing local interagency 
113.28  agreements to assure the necessary services for efficient and 
113.29  appropriate transition from school to work or post-secondary 
113.30  training programs; and 
113.31     (4) assist regions and local areas in planning interagency 
113.32  in-service training to develop and improve transition services.  
113.33     Sec. 11.  [120A.11] [ACCOMMODATING STUDENTS WITH 
113.34  DISABILITIES.] 
113.35     A school or district must provide a student who is an 
113.36  "individual with a disability" under Section 504 of the 
114.1   Rehabilitation Act of 1973, United States Code, title 29, 
114.2   section 794, or under the Americans with Disabilities Act, 
114.3   Public Law Number 101-336, with reasonable accommodations or 
114.4   modifications in programs.  
114.5      Sec. 12.  [120A.12] [DEFINITION.] 
114.6      Subdivision 1.  [APPLICABILITY.] For the purposes of 
114.7   sections 120.187 to 120.190, the following terms have the 
114.8   meanings given them. 
114.9      Subd. 2.  [ASSISTIVE TECHNOLOGY DEVICE.] "Assistive 
114.10  technology device" means any item, piece of equipment, software, 
114.11  or product system, whether acquired commercially off the shelf, 
114.12  modified, or customized, that is used to increase, maintain, or 
114.13  improve functional capabilities of children with disabilities. 
114.14     Sec. 13.  [120A.13] [PURCHASING GUIDELINES.] 
114.15     Subdivision 1.  [RIGHTS OF DISTRICTS TO PURCHASE 
114.16  SCHOOL-OWNED ASSISTIVE TECHNOLOGY.] (a) When a child with a 
114.17  disability exits a district and enters a new district, the 
114.18  child's new district may purchase any assistive technology 
114.19  devices that the child's former district has purchased on the 
114.20  child's behalf.  The child's new district must notify, in 
114.21  writing, the child's former district of the intent to purchase 
114.22  the device.  The child's new district must complete a purchase 
114.23  agreement according to section 120.1701, subdivision 10.  The 
114.24  child's former district must respond, in writing, to the request 
114.25  to purchase within 30 days.  
114.26     (b) Districts may decline to sell a device if they can 
114.27  demonstrate the technology is a general use device or can be 
114.28  modified for use by other students. 
114.29     Subd. 2.  [LIABILITY FOR USED EQUIPMENT.] The child's 
114.30  former district is not liable for any nonconformities in the 
114.31  equipment after it is purchased by the child's new district, or 
114.32  for injuries arising out of the use of the assistive technology 
114.33  device.  This section does not foreclose the child's right to 
114.34  bring suit against the manufacturer, assistive device lessor, or 
114.35  assistive device dealer for nonconformities in or injuries 
114.36  arising out of the use of the assistive technology device. 
115.1      Subd. 3.  [THIRD-PARTY PAYORS.] Nothing contained in this 
115.2   section may be construed as decreasing the obligation of an 
115.3   insurance company or other third-party payor to provide coverage 
115.4   for assistive technology. 
115.5      Sec. 14.  [120A.14] [INTERAGENCY AGREEMENT TO PURCHASE USED 
115.6   ASSISTIVE TECHNOLOGY DEVICES.] 
115.7      Subdivision 1.  [OPTION TO PURCHASE BY DEPARTMENT OF 
115.8   ECONOMIC SECURITY.] (a) When a child with a disability 
115.9   transitions into a work environment or enrolls in a 
115.10  post-secondary course or program, the department of economic 
115.11  security may purchase any assistive technology device that the 
115.12  child's former district purchased on the child's behalf. 
115.13     (b) The department of economic security may purchase an 
115.14  assistive technology device initially purchased by a district 
115.15  for a child who is currently a recipient of rehabilitation 
115.16  services and who needs the identical assistive technology device 
115.17  as stated on the recipient's individual written rehabilitation 
115.18  plan.  The purchase may be made not more than three months 
115.19  before the child exits the district. 
115.20     Subd. 2.  [LIABILITY FOR USED EQUIPMENT.] The department of 
115.21  economic security and the department of children, families, and 
115.22  learning are not liable for any nonconformities in the equipment 
115.23  after it is purchased by the department of economic security, or 
115.24  for injuries arising out of the use of the assistive technology 
115.25  device.  This section does not foreclose the child's right to 
115.26  bring suit against the manufacturer, assistive device lessor, or 
115.27  assistive device dealer for nonconformities in or injuries 
115.28  arising out of the use of the assistive technology device. 
115.29     Subd. 3.  [THIRD-PARTY PAYOR.] Nothing contained in this 
115.30  section may be construed as decreasing the obligation of an 
115.31  insurance company or other third-party payor to provide coverage 
115.32  for assistive technology. 
115.33     Sec. 15.  [120A.15] [PURCHASE AGREEMENT; PRICE FORMULA.] 
115.34     The commissioner must develop guidelines for the sale of 
115.35  used assistive technology including a purchase agreement, a 
115.36  formula for establishing the sale price, and other terms and 
116.1   conditions of the sale. 
116.2      Sec. 16.  [120A.16] [HEARING IMPAIRED EDUCATIONAL SUPPORT 
116.3   SERVICES.] 
116.4      Subdivision 1.  [RESPONSIBILITY OF COMMISSIONER.] The 
116.5   commissioner shall coordinate and may pay for support services 
116.6   for hearing impaired persons to assure access to educational 
116.7   opportunities.  Services may be provided to adult students who 
116.8   are hearing impaired and (a) have been denied access to 
116.9   educational opportunities because of the lack of support 
116.10  services or (b) are presently enrolled or (c) are contemplating 
116.11  enrollment in an educational program and would benefit from 
116.12  support services.  The commissioner shall also be responsible 
116.13  for conducting in-service training for public and private 
116.14  agencies regarding the needs of hearing impaired persons in the 
116.15  adult education system.  
116.16     Subd. 2.  [SUPPORT SERVICES.] The state board may pay 
116.17  school districts or public or private community agencies for the 
116.18  following support services:  
116.19     (a) Interpreter services to provide translation for an 
116.20  individual or a group of students; or 
116.21     (b) Notetaker services to convert spoken language to 
116.22  written language when the student must maintain visual contact 
116.23  with other persons such as an interpreter or instructor.  
116.24     Subd. 3.  [PROGRAMS INCLUDED.] Support services may be 
116.25  provided for:  
116.26     (a) Local school district adult education programs; 
116.27     (b) Adult technical college programs; and 
116.28     (c) Avocational education programs sponsored by public or 
116.29  private community agencies.  
116.30     Sec. 17.  [120A.17] [ALTERNATE INSTRUCTION REQUIRED.] 
116.31     Before a pupil is referred for a special education 
116.32  assessment, the district must conduct and document at least two 
116.33  instructional strategies, alternatives, or interventions while 
116.34  the pupil is in the regular classroom.  The pupil's teacher must 
116.35  provide the documentation.  A special education assessment team 
116.36  may waive this requirement when they determine the pupil's need 
117.1   for the assessment is urgent.  This section may not be used to 
117.2   deny a pupil's right to a special education assessment. 
117.3      Sec. 18.  [120A.18] [CHILDREN WITH A DISABILITY.] 
117.4      Subdivision 1.  [TRAVEL AID.] The state must pay each 
117.5   district one-half of the sum actually expended by a district for 
117.6   necessary travel of essential personnel providing home-based 
117.7   services to children with a disability under age five and their 
117.8   families. 
117.9      Subd. 2.  [AID PAYMENT.] The aids provided for children 
117.10  with a disability must be paid to the district providing the 
117.11  special instruction and services.  General education aid must be 
117.12  paid to the district of the pupil's residence.  The total amount 
117.13  of aid paid may not exceed the amount expended for children with 
117.14  a disability in the year for which the aid is paid. 
117.15     Subd. 3.  [FULL STATE PAYMENT.] The state must pay each 
117.16  district the actual cost incurred in providing instruction and 
117.17  services for a child with a disability whose district of 
117.18  residence has been determined by section 120.17, subdivision 8a, 
117.19  and who is temporarily placed in a state institution or a 
117.20  licensed residential facility for care and treatment.  This 
117.21  section does not apply to a child placed in a foster home or a 
117.22  foster group home. 
117.23     Upon following the procedure specified by the commissioner, 
117.24  the district may bill the state the actual cost incurred in 
117.25  providing the services including transportation costs and a 
117.26  proportionate amount of capital expenditures and debt service, 
117.27  minus the amount of the basic revenue, as defined in section 
117.28  124A.22, subdivision 2, of the district for the child and the 
117.29  special education aid, transportation aid, and any other aid 
117.30  earned on behalf of the child.  The limit set forth in 
117.31  subdivision 2 applies to aid paid pursuant to this subdivision.  
117.32     To the extent possible, the commissioner shall obtain 
117.33  reimbursement from another state for the cost of serving any 
117.34  child whose parent or guardian resides in that state.  The 
117.35  commissioner may contract with the appropriate authorities of 
117.36  other states to effect reimbursement.  All money received from 
118.1   other states must be paid to the state treasury and placed in 
118.2   the general fund.  
118.3      Subd. 4.  [PROGRAM AND AID APPROVAL.] Before June 1 of each 
118.4   year, each district providing special instruction and services 
118.5   to children with a disability must submit to the commissioner an 
118.6   application for approval of these programs and their budgets for 
118.7   the next fiscal year.  The application must include an 
118.8   enumeration of the costs proposed as eligible for state aid 
118.9   pursuant to this section and of the estimated number and grade 
118.10  level of children with a disability in the district who will 
118.11  receive special instruction and services during the regular 
118.12  school year and in summer school programs during the next fiscal 
118.13  year.  The application must also include any other information 
118.14  deemed necessary by the commissioner for the calculation of 
118.15  state aid and for the evaluation of the necessity of the 
118.16  program, the necessity of the personnel to be employed in the 
118.17  program, for determining the amount which the program will 
118.18  receive from grants from federal funds, or special grants from 
118.19  other state sources, and the program's compliance with the rules 
118.20  and standards of the state board.  The commissioner shall review 
118.21  each application to determine whether the program and the 
118.22  personnel to be employed in the program are actually necessary 
118.23  and essential to meet the district's obligation to provide 
118.24  special instruction and services to children with a disability 
118.25  pursuant to sections 120.17 and 120.1701.  The commissioner 
118.26  shall not approve aid pursuant to this section for any program 
118.27  or for the salary of any personnel determined to be unnecessary 
118.28  or unessential on the basis of this review.  The commissioner 
118.29  may withhold all or any portion of the aid for programs which 
118.30  receive grants from federal funds, or special grants from other 
118.31  state sources.  By August 31 the commissioner shall approve, 
118.32  disapprove or modify each application, and notify each applying 
118.33  district of the action and of the estimated amount of aid for 
118.34  the programs.  The commissioner shall provide procedures for 
118.35  districts to submit additional applications for program and 
118.36  budget approval during the fiscal year, for programs needed to 
119.1   meet any substantial changes in the needs of children with a 
119.2   disability in the district.  Notwithstanding the provisions of 
119.3   section 124.15, the commissioner may modify or withdraw the 
119.4   program or aid approval and withhold aid pursuant to this 
119.5   section without proceeding according to section 124.15 at any 
119.6   time the commissioner determines that the program does not 
119.7   comply with rules of the state board or that any facts 
119.8   concerning the program or its budget differ from the facts in 
119.9   the district's approved application. 
119.10     Subd. 5.  [REGULAR CLASSROOM PROGRAMS.] When planning 
119.11  programs for the education of children with a disability in the 
119.12  regular classroom, school districts are encouraged to consider 
119.13  the size of the regular class and to provide the support 
119.14  services necessary to ensure successful mainstreaming. 
119.15     Subd. 6.  [SUMMER SCHOOL.] By March 15 of each year, 
119.16  districts must submit separate applications for program and 
119.17  budget approval for summer school programs.  The review of these 
119.18  applications must be reviewed as provided in subdivision 4.  By 
119.19  May 1 of each year, the commissioner shall approve, disapprove 
119.20  or modify the applications and notify the districts of the 
119.21  action and of the estimated amount of aid for the summer school 
119.22  programs.  
119.23     Subd. 7.  [ALLOCATION FROM COOPERATIVE CENTERS, SERVICE 
119.24  COOPERATIVES, EDUCATION DISTRICTS, AND INTERMEDIATE DISTRICTS.] 
119.25  For purposes of this section, a special education cooperative, 
119.26  service cooperative, education district, or an intermediate 
119.27  district must allocate its approved expenditures for special 
119.28  education programs among participating districts.  Special 
119.29  education aid for services provided by a cooperative, service 
119.30  cooperative, education district, or intermediate district must 
119.31  be paid to the participating school districts. 
119.32     Sec. 19.  [120A.19] [SPECIAL EDUCATION REVENUE.] 
119.33     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
119.34  section and sections 124.3202 and 124.321, the definitions in 
119.35  this subdivision apply. 
119.36     (a) "Base year" for fiscal year 1996 and fiscal year 1997 
120.1   means the 1994 summer program and the 1994-1995 school year.  
120.2   Base year for later fiscal years means the second fiscal year 
120.3   preceding the fiscal year for which aid will be paid. 
120.4      (b) "Basic revenue" has the meaning given it in section 
120.5   124A.22, subdivision 2.  For the purposes of computing basic 
120.6   revenue pursuant to this section, each child with a disability 
120.7   shall be counted as prescribed in section 124.17, subdivision 1. 
120.8      (c) "Essential personnel" means teachers, related services, 
120.9   and support services staff providing direct services to students.
120.10     (d) "Average daily membership" has the meaning given it in 
120.11  section 124.17. 
120.12     (e) "Program growth factor" means 1.00 for fiscal year 1998 
120.13  and later. 
120.14     (f) "Aid percentage factor" means 60 percent for fiscal 
120.15  year 1996, 70 percent for fiscal year 1997, 80 percent for 
120.16  fiscal year 1998, 90 percent for fiscal year 1999, and 100 
120.17  percent for fiscal years 2000 and later. 
120.18     (g) "Levy percentage factor" means 100 minus the aid 
120.19  percentage factor for that year. 
120.20     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] The special 
120.21  education base revenue equals the sum of the following amounts 
120.22  computed using base year data: 
120.23     (1) 68 percent of the salary of each essential person 
120.24  employed in the district's program for children with a 
120.25  disability during the regular school year, whether the person is 
120.26  employed by one or more districts; 
120.27     (2) for the Minnesota state academy for the deaf or the 
120.28  Minnesota state academy for the blind, 68 percent of the salary 
120.29  of each instructional aide assigned to a child attending the 
120.30  academy, if that aide is required by the child's individual 
120.31  education plan; 
120.32     (3) for special instruction and services provided to any 
120.33  pupil by contracting with public, private, or voluntary agencies 
120.34  other than school districts, in place of special instruction and 
120.35  services provided by the district, 52 percent of the difference 
120.36  between the amount of the contract and the basic revenue of the 
121.1   district for that pupil for the fraction of the school day the 
121.2   pupil receives services under the contract; 
121.3      (4) for special instruction and services provided to any 
121.4   pupil by contracting for services with public, private, or 
121.5   voluntary agencies other than school districts, that are 
121.6   supplementary to a full educational program provided by the 
121.7   school district, 52 percent of the amount of the contract for 
121.8   that pupil; 
121.9      (5) for supplies and equipment purchased or rented for use 
121.10  in the instruction of children with a disability an amount equal 
121.11  to 47 percent of the sum actually expended by the district but 
121.12  not to exceed an average of $47 in any one school year for each 
121.13  child with a disability receiving instruction; and 
121.14     (6) for fiscal years 1997 and later, special education base 
121.15  revenue shall include amounts under clauses (1) to (5) for 
121.16  special education summer programs provided during the base year 
121.17  for that fiscal year. 
121.18     Subd. 3.  [SPECIAL EDUCATION TUITION REVENUE.] (a) For 
121.19  fiscal year 1996 and later, a district's special education 
121.20  tuition revenue is equal to 50 percent of the difference between 
121.21  tuition costs in the base year and actual tuition costs for 
121.22  pupils whose individual education plans require placement in 
121.23  another district under section 120.17. 
121.24     (b) For purposes of this section, "tuition costs" means 
121.25  expenditures for tuition bills as defined in section 124.323, 
121.26  subdivision 2, paragraph (a), clause (2). 
121.27     Subd. 4.  [SPECIAL EDUCATION COURT PLACEMENT REVENUE.] For 
121.28  fiscal year 1996 and later, a district's special education court 
121.29  placement revenue is equal to 50 percent of the difference 
121.30  between expenditures for teachers' salaries, contracted 
121.31  services, supplies, and equipment eligible for revenues under 
121.32  sections 124.3201 and 124.3202, in the base year and actual 
121.33  expenditures for pupils with disabilities who receive services 
121.34  pursuant to a court order. 
121.35     Subd. 5.  [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For 
121.36  fiscal year 1996 and later, a district's adjusted special 
122.1   education base revenue equals the district's special education 
122.2   base revenue times the ratio of the district's average daily 
122.3   membership for the current school year to the district's average 
122.4   daily membership for the base year; plus the district's special 
122.5   education tuition revenue under subdivision 3 and special 
122.6   education court placement revenue under subdivision 4. 
122.7      Subd. 6.  [STATE TOTAL SPECIAL EDUCATION REVENUE.] The 
122.8   state total special education revenue for fiscal year 1996 
122.9   equals $327,846,000.  The state total special education revenue 
122.10  for fiscal year 1997 equals $347,810,000.  The state total 
122.11  special education revenue for later fiscal years equals:  
122.12     (1) the state total special education revenue for the 
122.13  preceding fiscal year; times 
122.14     (2) the program growth factor; times 
122.15     (3) the ratio of the state total average daily membership 
122.16  for the current fiscal year to the state total average daily 
122.17  membership for the preceding fiscal year. 
122.18     Subd. 7.  [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] (a) 
122.19  A school district's special education revenue for fiscal year 
122.20  1996 and later equals the state total special education revenue, 
122.21  minus the amount determined under paragraph (b), times the ratio 
122.22  of the district's adjusted special education base revenue to the 
122.23  state total adjusted special education base revenue.  If the 
122.24  state board of education modifies its rules for special 
122.25  education in a manner that increases a district's special 
122.26  education obligations or service requirements, the commissioner 
122.27  shall annually increase each district's special education 
122.28  revenue by the amount necessary to compensate for the increased 
122.29  service requirements.  The additional revenue equals the cost in 
122.30  the current year attributable to rule changes not reflected in 
122.31  the computation of special education base revenue, multiplied by 
122.32  the appropriate percentages from subdivision 2. 
122.33     (b) Notwithstanding paragraph (a), if the special education 
122.34  base revenue for a district equals zero, the special education 
122.35  revenue equals the amount computed according to subdivision 2 
122.36  using current year data.  
123.1      Subd. 8.  [SPECIAL EDUCATION AID.] A district's special 
123.2   education aid for fiscal year 1996 and later equals the 
123.3   district's special education revenue times the aid percentage 
123.4   factor for that year. 
123.5      Subd. 9.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
123.6   INTERMEDIATES.] For the purposes of this section and section 
123.7   124.321, a special education cooperative or an intermediate 
123.8   district must allocate its approved expenditures for special 
123.9   education programs among participating districts.  
123.10     Sec. 20.  [120A.20] [SPECIAL EDUCATION SUMMER PROGRAM 
123.11  REVENUE.] 
123.12     Subdivision 1.  [SUMMER PROGRAM BASE REVENUE.] The summer 
123.13  program base revenue for fiscal year 1996 and fiscal year 1997 
123.14  equals the sum of the following amounts computed using base year 
123.15  data: 
123.16     (1) 68 percent of the summer program salary of each 
123.17  essential person employed in the district's program for children 
123.18  with a disability, whether the person is employed by one or more 
123.19  districts; 
123.20     (2) for the Minnesota state academy for the deaf or the 
123.21  Minnesota state academy for the blind, 68 percent of the summer 
123.22  program salary of each instructional aide assigned to a child 
123.23  attending the academy, if that aide is required by the child's 
123.24  individual education plan; 
123.25     (3) for special instruction and services provided to any 
123.26  pupil by contracting with public, private, or voluntary agencies 
123.27  other than districts, in place of special instruction and 
123.28  services provided by the district, 52 percent of the difference 
123.29  between the amount of the contract for the summer program and 
123.30  the basic revenue of the district for that pupil for the 
123.31  fraction of the school day the pupil receives services under the 
123.32  contract; and 
123.33     (4) for special instruction and services provided to any 
123.34  pupil by contracting for services with public, private, or 
123.35  voluntary agencies other than school districts, that are 
123.36  supplementary to a full educational program provided by the 
124.1   district, 52 percent of the amount of the summer program 
124.2   contract for that pupil. 
124.3      Subd. 2.  [ADJUSTED SUMMER PROGRAM BASE REVENUE.] For 
124.4   fiscal year 1996 and fiscal year 1997, a district's adjusted 
124.5   summer program base revenue equals the district's summer program 
124.6   base revenue times the ratio of the district's average daily 
124.7   membership for the current school year to the district's average 
124.8   daily membership for the base year. 
124.9      Subd. 3.  [STATE TOTAL SUMMER PROGRAM REVENUE.] The state 
124.10  total summer program revenue for fiscal year 1996 equals 
124.11  $7,152,000.  The state total summer program revenue for fiscal 
124.12  year 1997 equals $3,728,500.  Fiscal year 1996 summer program 
124.13  revenue is for 1995 summer programs.  Fiscal year 1997 summer 
124.14  program revenue is for 1996 summer programs provided in fiscal 
124.15  year 1996. 
124.16     Subd. 4.  [SCHOOL DISTRICT SUMMER PROGRAM REVENUE.] (a) A 
124.17  district's summer program revenue for fiscal year 1996 and 
124.18  fiscal year 1997 equals the state total summer program revenue, 
124.19  minus the amount determined under paragraph (b), times the ratio 
124.20  of the district's adjusted summer program base revenue to the 
124.21  state total adjusted summer program base revenue. 
124.22     (b) Notwithstanding paragraph (a), if the special education 
124.23  base revenue for a district under section 124.3201, subdivision 
124.24  2, equals zero, the summer program revenue equals the amount 
124.25  computed according to subdivision 1 using current year data.  
124.26     Subd. 5.  [SPECIAL EDUCATION SUMMER PROGRAM AID.] A 
124.27  district's special education summer program aid for fiscal year 
124.28  1996 and fiscal year 1997 equals the district's summer program 
124.29  revenue times the aid percentage factor for that year. 
124.30     Subd. 6.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
124.31  INTERMEDIATES.] For the purposes of this section and section 
124.32  124.321, a special education cooperative or an intermediate 
124.33  district must allocate its approved expenditures for special 
124.34  education programs among participating districts.  Special 
124.35  education summer program aid for services provided by a 
124.36  cooperative or intermediate district must be paid to the 
125.1   participating districts. 
125.2      Sec. 21.  [120A.21] [SPECIAL EDUCATION LEVY EQUALIZATION 
125.3   REVENUE.] 
125.4      Subdivision 1.  [LEVY EQUALIZATION REVENUE.] (a) For fiscal 
125.5   years 1996 and later, special education levy equalization 
125.6   revenue for a school district, excluding an intermediate school 
125.7   district, equals the sum of the following amounts: 
125.8      (1) the levy percentage factor for that year times the 
125.9   district's special education revenue under section 124.3201; 
125.10  plus 
125.11     (2) the levy percentage factor for that year times the 
125.12  district's special education summer program revenue under 
125.13  section 124.3202; plus 
125.14     (3) the levy percentage factor for that year times the 
125.15  district's special education excess cost revenue under section 
125.16  124.323; plus 
125.17     (4) the levy percentage factor for that year times the 
125.18  district's secondary vocational education for children with a 
125.19  disability revenue under section 124.574; plus 
125.20     (5) the levy percentage factor for that year times the 
125.21  district's limited English proficiency programs revenue under 
125.22  section 124.273. 
125.23     Subd. 2.  [REVENUE ALLOCATION FROM STATE ACADEMIES.] (a) 
125.24  For purposes of this section, the Minnesota state academy for 
125.25  the deaf or the Minnesota state academy for the blind each year 
125.26  must allocate an amount equal to the levy percentage factor for 
125.27  that year times their special education revenue under section 
125.28  124.3201 and their special education summer program revenue 
125.29  under section 124.3202 for the year to each district that 
125.30  assigns a child with an individual education plan requiring an 
125.31  instructional aide to attend either academy.  The districts that 
125.32  assign a child who requires an instructional aide may make a 
125.33  levy in the amount of the costs allocated to them by either 
125.34  academy. 
125.35     (b) When the Minnesota state academy for the deaf or the 
125.36  Minnesota state academy for the blind allocates revenue among 
126.1   school districts that assign a child who requires an 
126.2   instructional aide, for purposes of the districts making a levy 
126.3   under this subdivision, the academy must provide information to 
126.4   the department on the amount of revenue it allocated to the 
126.5   school districts that assign a child who requires an 
126.6   instructional aide. 
126.7      Subd. 3.  [SPECIAL EDUCATION LEVY.] To receive special 
126.8   education levy revenue, a district may levy an amount equal to 
126.9   the district's special education levy equalization revenue as 
126.10  defined in subdivision 1 multiplied by the lesser of one, or the 
126.11  ratio of: 
126.12     (1) the quotient derived by dividing the adjusted net tax 
126.13  capacity of the district for the year preceding the year the 
126.14  levy is certified by the actual pupil units in the district for 
126.15  the school year to which the levy is attributable, to 
126.16     (2) $3,540. 
126.17     Subd. 4.  [SPECIAL EDUCATION LEVY EQUALIZATION AID.] A 
126.18  district's special education levy equalization aid is the 
126.19  difference between its special education levy equalization 
126.20  revenue and its special education levy.  If a district does not 
126.21  levy the entire amount permitted, special education levy 
126.22  equalization aid must be reduced in proportion to the actual 
126.23  amount levied. 
126.24     Subd. 5.  [PRORATION.] In the event that the special 
126.25  education levy equalization aid for any year is prorated, a 
126.26  district having its aid prorated may levy an additional amount 
126.27  equal to the amount not paid by the state due to proration. 
126.28     Sec. 22.  [120A.22] [ALTERNATIVE DELIVERY BASE REVENUE 
126.29  ADJUSTMENT.] 
126.30     Subdivision 1.  [ELIGIBILITY.] A district is eligible for 
126.31  an alternative delivery base revenue adjustment if the 
126.32  commissioner has approved the application of the district 
126.33  according to section 120.173. 
126.34     Subd. 2.  [BASE REVENUE ADJUSTMENT.] For the third fiscal 
126.35  year after approval of a district's application, and thereafter, 
126.36  the special education base revenue under section 124.3201, 
127.1   subdivision 1, and the summer program base revenue under section 
127.2   124.3202, subdivision 1, must be computed based on activities 
127.3   defined as reimbursable under state board rules for special 
127.4   education and nonspecial education students, and additional 
127.5   activities as detailed and approved by the commissioner. 
127.6      Subd. 3.  [USE OF REVENUE.] Revenue under sections 124.3201 
127.7   and 124.3202 shall be used to implement the approved program.  
127.8      Sec. 23.  [120A.23] [SPECIAL EDUCATION EXCESS COST AID.] 
127.9      Subdivision 1.  [DEFINITIONS.] In this section, the 
127.10  definitions in this subdivision apply. 
127.11     (a) "Unreimbursed special education cost" means the sum of 
127.12  the following: 
127.13     (1) expenditures for teachers' salaries, contracted 
127.14  services, supplies, and equipment eligible for revenue under 
127.15  sections 124.3201 and 124.3202; plus 
127.16     (2) expenditures for tuition bills received under section 
127.17  120.17 for services eligible for revenue under sections 
127.18  124.3201, subdivision 2, and 124.3202, subdivision 1; minus 
127.19     (3) revenue for teachers' salaries, contracted services, 
127.20  supplies, and equipment under sections 124.3201 and 124.3202; 
127.21  minus 
127.22     (4) tuition receipts under section 120.17 for services 
127.23  eligible for revenue under sections 124.3201, subdivision 2, and 
127.24  124.3202, subdivision 1. 
127.25     (b) "General revenue," for fiscal year 1996, means the sum 
127.26  of the general education revenue according to section 124A.22, 
127.27  subdivision 1, as adjusted according to section 124A.036, 
127.28  subdivision 5, plus the total referendum revenue according to 
127.29  section 124A.03, subdivision 1e.  For fiscal years 1997 and 
127.30  later, "general revenue" means the sum of the general education 
127.31  revenue according to section 124A.22, subdivision 1, as adjusted 
127.32  according to section 124A.036, subdivision 5, plus the total 
127.33  referendum revenue minus transportation sparsity revenue minus 
127.34  total operating capital revenue. 
127.35     Subd. 2.  [EXCESS COST REVENUE.] For 1996 and later fiscal 
127.36  years, a district's special education excess cost revenue equals 
128.1   70 percent of the difference between (1) the district's 
128.2   unreimbursed special education cost and (2) six percent for 
128.3   fiscal year 1996 and 5.7 percent for fiscal year 1997 and later 
128.4   years of the district's general revenue. 
128.5      Subd. 3.  [EXCESS COST AID.] For 1996 and later fiscal 
128.6   years, a district's special education excess cost aid equals the 
128.7   district's special education excess cost revenue times the aid 
128.8   percentage factor for that year. 
128.9      Sec. 24.  [120A.24] [MEDICAL ASSISTANCE PAYMENTS TO SCHOOL 
128.10  DISTRICTS.] 
128.11     Subdivision 1.  [ELIGIBILITY.] A district may enroll as a 
128.12  provider in the medical assistance program and receive medical 
128.13  assistance payments for covered special education services 
128.14  provided to persons eligible for medical assistance under 
128.15  chapter 256B.  To receive medical assistance payments, the 
128.16  district must comply with relevant provisions of state and 
128.17  federal statutes and regulations governing the medical 
128.18  assistance program. 
128.19     Subd. 2.  [FUNDING.] A district that provides a covered 
128.20  service to an eligible person and complies with relevant 
128.21  requirements of the medical assistance program is entitled to 
128.22  receive payment for the service provided, including that portion 
128.23  of the payment that will subsequently be reimbursed by the 
128.24  federal government, in the same manner as other medical 
128.25  assistance providers.  The school district is not required to 
128.26  provide matching funds or pay part of the costs of the service, 
128.27  as long as the rate charged for the service does not exceed 
128.28  medical assistance limits that apply to all medical assistance 
128.29  providers. 
128.30     Subd. 3.  [CONTRACT FOR SERVICES.] A district may contract 
128.31  for the provision of medical assistance-covered services, and 
128.32  may contract with a third party agency to assist in 
128.33  administering and billing for these services. 
128.34     Subd. 4.  [PRIVATE INSURERS.] A district may enroll as a 
128.35  provider for insurance companies to provide covered special 
128.36  education services to eligible persons.  To receive payments, 
129.1   the district must comply with relevant state and federal 
129.2   statutes.  A district may contract for services, and may 
129.3   contract with a third party agency to assist in administering 
129.4   and billing for these services. 
129.5      Subd. 5.  [NO REDUCTION IN REVENUE.] A district's revenue 
129.6   for special education programs must not be reduced by any 
129.7   payments for medical assistance or insurance received according 
129.8   to this section. 
129.9      Sec. 25.  [120A.25] [CITATION.] 
129.10     Sections 126.261 to 126.269 may be cited as the "Education 
129.11  for Limited English Proficient Students Act."  
129.12     Sec. 26.  [120A.26] [DEFINITIONS.] 
129.13     Subdivision 1.  [GENERALLY.] For purposes of sections 
129.14  124.273 and 126.261 to 126.269, the terms defined in this 
129.15  section shall have the meanings given them. 
129.16     Subd. 2.  [PUPIL OF LIMITED ENGLISH PROFICIENCY.] "Pupil of 
129.17  limited English proficiency" means a pupil in any of the grades 
129.18  of kindergarten through 12 who meets the following requirements: 
129.19     (a) The pupil, as declared by a parent or guardian (1) 
129.20  first learned a language other than English, (2) comes from a 
129.21  home where the language usually spoken is other than English, or 
129.22  (3) usually speaks a language other than English; and 
129.23     (b) The pupil's score is significantly below the average 
129.24  district score for pupils of the same age on a nationally normed 
129.25  English reading or English language arts achievement test.  A 
129.26  pupil's score shall be considered significantly below the 
129.27  average district score for pupils of the same age if it is 
129.28  one-third of a standard deviation below that average score.  
129.29     Subd. 3.  [ESSENTIAL INSTRUCTIONAL PERSONNEL.] "Essential 
129.30  instructional personnel" means the following:  
129.31     (a) A teacher licensed by the state board of teaching to 
129.32  teach bilingual education or English as a second language; 
129.33     (b) A teacher with an exemption from a teaching license 
129.34  requirement pursuant to section 126.266 who is employed in a 
129.35  school district's English as a second language or bilingual 
129.36  education program; 
130.1      (c) Any teacher as defined in section 125.03 who holds a 
130.2   valid license from the state board of teaching, if the district 
130.3   assures the department that the teacher will obtain the 
130.4   preservice and in-service training the department considers 
130.5   necessary to enable the teacher to provide appropriate service 
130.6   to pupils of limited English proficiency.  
130.7      Subd. 4.  [ENGLISH AS A SECOND LANGUAGE PROGRAM.] "English 
130.8   as a second language program" means a program for the 
130.9   instruction of pupils of limited English proficiency in the 
130.10  following English language skills:  reading, writing, listening 
130.11  and speaking.  
130.12     Subd. 5.  [BILINGUAL EDUCATION PROGRAM.] "Bilingual 
130.13  education program" means an educational program in which 
130.14  instruction is given in both English and the primary language of 
130.15  the pupil of limited English proficiency to the extent necessary 
130.16  to allow the pupil to progress effectively through the 
130.17  educational system and to attain the basic skills of reading, 
130.18  writing, listening, and speaking in the English language so that 
130.19  the pupil will be able to perform ordinary classwork 
130.20  successfully in English.  
130.21     Subd. 6.  [PRIMARY LANGUAGE.] "Primary language" means a 
130.22  language other than English which is the language normally used 
130.23  by the child or the language which is spoken in the child's home 
130.24  environment.  
130.25     Subd. 7.  [PARENT.] "Parent" includes a child's legal 
130.26  guardian.  
130.27     Subd. 8.  [EDUCATIONAL PROGRAM FOR PUPILS OF LIMITED 
130.28  ENGLISH PROFICIENCY.] "Educational program for pupils of limited 
130.29  English proficiency" means an English as a second language 
130.30  program, bilingual education program, or both an English as a 
130.31  second language and a bilingual education program. 
130.32     Sec. 27.  [120A.27] [RIGHTS OF PARENTS.] 
130.33     Subdivision 1.  [NOVICE.] Within ten days after the 
130.34  enrollment of any pupil in an instructional program for limited 
130.35  English proficient students, the district in which the pupil 
130.36  resides must notify the parent by mail.  This notice must:  
131.1      (a) Be in writing in English and in the primary language of 
131.2   the pupil's parents; 
131.3      (b) Inform the parents that their child has been enrolled 
131.4   in an instructional program for limited English proficient 
131.5   students; 
131.6      (c) Contain a simple, nontechnical description of the 
131.7   purposes, method and content of the program; 
131.8      (d) Inform the parents that they have the right to visit 
131.9   the educational program for limited English proficient students 
131.10  in which their child is enrolled; 
131.11     (e) Inform the parents of the time and manner in which to 
131.12  request and receive a conference for the purpose of explaining 
131.13  the nature and purpose of the program; and 
131.14     (f) Inform the parents of their rights to withdraw their 
131.15  child from an educational program for limited English proficient 
131.16  students and the time and manner in which to do so.  
131.17     The department shall, at the request of the district, 
131.18  prepare the notice in the primary language of the parent.  
131.19     Subd. 2.  [WITHDRAWAL FROM PROGRAM.] Any parent whose child 
131.20  is enrolled in an educational program for limited English 
131.21  proficient students shall have the right, either at the time of 
131.22  the original notification of enrollment or at the close of any 
131.23  semester thereafter, to withdraw the child from the program by 
131.24  providing written notice of this intent to the principal of the 
131.25  school in which the child is enrolled or to the superintendent 
131.26  of the district in which the child resides.  Nothing in this 
131.27  section shall preclude a parent from reenrolling a child of 
131.28  limited English proficiency in an educational program for 
131.29  limited English proficient students. 
131.30     Subd. 3.  [PARENTAL INVOLVEMENT.] A district which receives 
131.31  moneys pursuant to section 124.273 must encourage involvement of 
131.32  parents of pupils enrolled in the educational program for 
131.33  limited English proficient students in this program.  The 
131.34  district shall solicit the views of parents about the program 
131.35  and its effects upon their children. 
131.36     Sec. 28.  [120A.28] [GENERAL REQUIREMENTS FOR PROGRAMS.] 
132.1      A district which receives aid pursuant to section 124.273 
132.2   must comply with the following program requirements: 
132.3      (a) To the extent possible, the district must avoid 
132.4   isolating children of limited English proficiency for a 
132.5   substantial part of the school day; and 
132.6      (b) In predominantly nonverbal subjects, such as art, 
132.7   music, and physical education, pupils of limited English 
132.8   proficiency shall be permitted to participate fully and on an 
132.9   equal basis with their contemporaries in public school classes 
132.10  provided for these subjects.  To the extent possible, the 
132.11  district must assure to pupils enrolled in a program for limited 
132.12  English proficient students an equal and meaningful opportunity 
132.13  to participate fully with other pupils in all extracurricular 
132.14  activities. 
132.15     Sec. 29.  [120A.29] [EXEMPTION FROM TEACHING LICENSURE.] 
132.16     Subdivision 1.  [EXEMPTIONS.] The commissioner may grant an 
132.17  exemption from the licensure requirement in the hiring of 
132.18  teachers of English as a second language or bilingual education 
132.19  teachers to a district if the commissioner finds that compliance 
132.20  would impose a hardship upon the district in the securing of 
132.21  teachers for its educational programs for limited English 
132.22  proficient students.  The commissioner shall notify the board of 
132.23  teaching of any exemptions granted pursuant to this section. 
132.24     Subd. 2.  [CREDIT FOR SERVICE.] A teacher serving under an 
132.25  exemption as provided in subdivision 1 shall be granted a 
132.26  license as soon as that teacher qualifies for it.  Not more than 
132.27  one year of service by a teacher under an exemption shall be 
132.28  credited to the teacher for the purposes of section 125.12.  For 
132.29  purposes of section 125.17, a teacher shall receive credit equal 
132.30  to the number of years the teacher served under an exemption. 
132.31     Sec. 30.  [120A.30] [TECHNICAL ASSISTANCE.] 
132.32     The commissioner shall provide technical assistance to 
132.33  districts receiving aid pursuant to section 124.273 and to 
132.34  post-secondary institutions for preservice and in-service 
132.35  training for bilingual education teachers and English as a 
132.36  second language teachers employed in educational programs for 
133.1   limited English proficient students, teaching methods, 
133.2   curriculum development, testing and testing mechanisms, and the 
133.3   development of instructional materials for these educational 
133.4   programs. 
133.5      Sec. 31.  [120A.31] [CONSTRUCTION.] 
133.6      Nothing in the provisions of sections 126.261 to 126.267 
133.7   shall be construed to violate the provisions of section 127.08 
133.8   or chapter 363.  Programs and activities pursuant to sections 
133.9   126.261 to 126.267 shall be deemed to be positive action 
133.10  programs to combat discrimination.  
133.11     Sec. 32.  [120A.32] [LIMITED ENGLISH PROFICIENCY PROGRAMS 
133.12  AID.] 
133.13     Subdivision 1.  [ADJUSTED LEP BASE REVENUE.] (a) A 
133.14  district's adjusted limited English proficiency programs base 
133.15  revenue for fiscal year 1996 and later equals the product of: 
133.16     (1) the district's base revenue for limited English 
133.17  proficiency programs under this section and section 124.321, 
133.18  times 
133.19     (2) the ratio of: 
133.20     (i) the greater of 20 or the number of pupils of limited 
133.21  English proficiency enrolled in the district during the current 
133.22  fiscal year to 
133.23     (ii) the greater of 20 or the number of pupils of limited 
133.24  English proficiency enrolled in the district during the base 
133.25  year. 
133.26     (b) For the purposes of this section, the base year for 
133.27  fiscal year 1996 is fiscal year 1995.  The base year for later 
133.28  fiscal years is the second fiscal year preceding the fiscal year 
133.29  for which aid shall be paid.  The current year is the fiscal 
133.30  year for which aid shall be paid. 
133.31     (c) For the purposes of this section, a teacher includes 
133.32  nonlicensed personnel who provide direct instruction to students 
133.33  of limited English proficiency under the supervision of a 
133.34  licensed teacher. 
133.35     Subd. 2.  [LEP BASE REVENUE.] (a) The limited English 
133.36  proficiency programs base revenue equals the sum of the 
134.1   following amounts, computed using base year data:  
134.2      (1) 68 percent of the salary of one full-time equivalent 
134.3   teacher for each 40 pupils of limited English proficiency 
134.4   enrolled, or 68 percent of the salary of one-half of a full-time 
134.5   teacher in a district with 20 or fewer pupils of limited English 
134.6   proficiency enrolled; and 
134.7      (2) for supplies and equipment purchased or rented for use 
134.8   in the instruction of pupils of limited English proficiency an 
134.9   amount equal to 47 percent of the sum actually spent by the 
134.10  district but not to exceed an average of $47 in any one school 
134.11  year for each pupil of limited English proficiency receiving 
134.12  instruction. 
134.13     (b) For the purposes of this subdivision, a teacher 
134.14  includes nonlicensed personnel who provide direct instruction to 
134.15  students of limited English proficiency under the supervision of 
134.16  a licensed teacher. 
134.17     Subd. 3.  [AID.] A district's limited English proficiency 
134.18  aid for fiscal year 1996 and later equals the aid percentage 
134.19  factor under section 124.3201, subdivision 1, times the 
134.20  district's limited English proficiency revenue. 
134.21     Subd. 4.  [STATE TOTAL LEP REVENUE.] (a) The state total 
134.22  limited English proficiency programs revenue for fiscal year 
134.23  1996 equals $12,202,000.  The state total limited English 
134.24  proficiency programs revenue for fiscal year 1997 equals 
134.25  $13,299,000.  
134.26     (b) The state total limited English proficiency programs 
134.27  revenue for later fiscal years equals: 
134.28     (1) the state total limited English proficiency programs 
134.29  revenue for the preceding fiscal year; times 
134.30     (2) the program growth factor under section 124.3201, 
134.31  subdivision 1; times 
134.32     (3) the ratio of the state total number of pupils with 
134.33  limited English proficiency for the current fiscal year to the 
134.34  state total number of pupils with limited English proficiency 
134.35  for the preceding fiscal year. 
134.36     Subd. 5.  [SCHOOL DISTRICT LEP REVENUE.] (a) A school 
135.1   district's limited English proficiency programs revenue for 
135.2   fiscal year 1996 and later equals the state total limited 
135.3   English proficiency programs revenue, minus the amount 
135.4   determined under paragraph (b), times the ratio of the 
135.5   district's adjusted limited English proficiency programs base 
135.6   revenue to the state total adjusted limited English proficiency 
135.7   programs base revenue. 
135.8      (b) Notwithstanding paragraph (a), if the limited English 
135.9   proficiency programs base revenue for a district equals zero, 
135.10  the limited English proficiency programs revenue equals the sum 
135.11  of the following amounts, computed using current year data: 
135.12     (1) 68 percent of the salary of one full-time equivalent 
135.13  teacher for each 40 pupils of limited English proficiency 
135.14  enrolled, or 68 percent of the salary of one-half of a full-time 
135.15  teacher in a district with 20 or fewer pupils of limited English 
135.16  proficiency enrolled; and 
135.17     (2) for supplies and equipment purchased or rented for use 
135.18  in the instruction of pupils of limited English proficiency an 
135.19  amount equal to 47 percent of the sum actually spent by the 
135.20  district but not to exceed an average of $47 in any one school 
135.21  year for each pupil of limited English proficiency receiving 
135.22  instruction. 
135.23     Subd. 6.  [PARTICIPATION OF NONPUBLIC SCHOOL PUPILS.] In 
135.24  counting the number of pupils of limited English proficiency for 
135.25  purposes of this section, districts may include pupils of 
135.26  limited English proficiency who attend nonpublic schools in the 
135.27  district.  A district which counts those pupils and receives aid 
135.28  pursuant to this section must offer those pupils the same 
135.29  programs on the same terms that it offers to pupils of limited 
135.30  English proficiency who attend the public school.  A program 
135.31  provided for a nonpublic school pupil pursuant to this 
135.32  subdivision must be provided at a public school or a neutral 
135.33  site as defined in section 123.932, subdivision 9.  Nonpublic 
135.34  school pupils served by a district's educational program for 
135.35  pupils of limited English proficiency must be counted for 
135.36  average daily membership pursuant to sections 124A.02, 
136.1   subdivisions 20 to 22, and 124A.034, subdivisions 1 to 2. 
136.2      Subd. 7.  [APPLICATION DATES.] To obtain aid for limited 
136.3   English proficiency programs, a district must submit information 
136.4   required by the department to implement this section. 
136.5      Subd. 8.  [NOTIFICATION; AID PAYMENTS.] The department must 
136.6   promptly inform each applicant district of the amount of aid it 
136.7   will receive pursuant to this section. 
136.8      Subd. 9.  [RECORDS; AUDIT.] A district which applies for 
136.9   aid pursuant to this section must maintain records which support 
136.10  the information contained in all of its applications.  The 
136.11  commissioner may audit these records upon request.  A district 
136.12  which receives aid pursuant to this section must keep such 
136.13  additional records in the manner prescribed by the commissioner 
136.14  to ensure that an educational program for pupils of limited 
136.15  English proficiency is implemented and operated in accordance 
136.16  with sections 126.261 to 126.269.  
136.17     Subd. 10.  [MONEY FROM OTHER SOURCES.] A district providing 
136.18  a program for pupils of limited English proficiency must be 
136.19  eligible to receive moneys for these programs from other 
136.20  government agencies and from private sources when these moneys 
136.21  are available.  
136.22     Sec. 33.  [120A.33] [ASSURANCE OF MASTERY REVENUE.] 
136.23     Subdivision 1.  [INSTRUCTION.] A district may receive 
136.24  assurance of mastery revenue to provide direct instructional 
136.25  services to eligible pupils.  
136.26     Subd. 2.  [ELIGIBLE DISTRICTS.] To be eligible to receive 
136.27  assurance of mastery revenue, a district must have a local 
136.28  process to review curriculum and instruction.  
136.29     Subd. 3.  [ELIGIBLE PUPILS.] A pupil is eligible to receive 
136.30  services provided with assurance of mastery revenue if the pupil 
136.31  has not demonstrated progress toward mastering the required 
136.32  graduation standards, after receiving instruction that was 
136.33  designed to enable the pupil to make progress toward mastering 
136.34  the required graduation standards in a regular classroom 
136.35  setting.  To determine pupil eligibility, a district must use a 
136.36  process adopted by the school board to review curriculum and 
137.1   instruction, for the subjects and at the grade level at which 
137.2   the district uses the revenue. 
137.3      Subd. 4.  [ELIGIBLE SERVICES.] Assurance of mastery revenue 
137.4   must be used to provide direct instructional services to an 
137.5   eligible pupil, or group of eligible pupils, under the following 
137.6   conditions:  
137.7      (a) Instruction may be provided at one or more grade levels 
137.8   from kindergarten through grade 8.  If an assessment of pupils' 
137.9   needs within a district demonstrates that the eligible pupils in 
137.10  grades kindergarten through 8 are being appropriately served, a 
137.11  district may serve eligible pupils in grades 9 through 12. 
137.12     (b) Instruction must be provided under the supervision of 
137.13  the eligible pupil's regular classroom teacher.  Instruction may 
137.14  be provided by the eligible pupil's classroom teacher, by 
137.15  another teacher, by a team of teachers, or by an education 
137.16  assistant or aide.  A special education teacher may provide 
137.17  instruction, but instruction that is provided under this section 
137.18  is not eligible for aid under section 124.32.  
137.19     (c) The instruction that is provided must differ from the 
137.20  initial instruction the pupil received in the regular classroom 
137.21  setting.  The instruction may differ by presenting different 
137.22  curriculum than was initially presented in the regular 
137.23  classroom, or by presenting the same curriculum:  
137.24     (1) at a different rate or in a different sequence than it 
137.25  was initially presented; 
137.26     (2) using different teaching methods or techniques than 
137.27  were used initially; or 
137.28     (3) using different instructional materials than were used 
137.29  initially. 
137.30     Subd. 5.  [REVENUE AMOUNT.] Assurance of mastery revenue is 
137.31  the sum of state and district money.  The sum may equal up to 
137.32  $45 for fiscal year 1991 and thereafter times the number of fund 
137.33  balance pupil units in kindergarten through grade 8 in the 
137.34  district.  The district must determine the amount of money it 
137.35  will provide and the state must provide an equal amount of money.
137.36     Subd. 6.  [USES OF REVENUE.] Assurance of mastery revenue 
138.1   may be used only to provide eligible services to eligible pupils.
138.2      Subd. 7.  [DISTRICT REPORT.] A district that receives 
138.3   assurance of mastery revenue must include the following in a 
138.4   report:  
138.5      (1) a summary of initial assessment results used to 
138.6   determine pupil eligibility to receive instructional services; 
138.7      (2) a description of the services provided to eligible 
138.8   pupils; and 
138.9      (3) a summary of assessment results for eligible pupils 
138.10  obtained after providing the services. 
138.11     Sec. 34.  [120A.34] [TARGETED NEEDS PROGRAM REVENUE.] 
138.12     Subdivision 1.  [USE OF THE REVENUE.] The targeted needs 
138.13  revenue under this section must be used to meet the educational 
138.14  needs of learners whose progress toward meeting state or local 
138.15  content or performance standards is below the level that is 
138.16  appropriate for learners of their age.  Any of the following may 
138.17  be provided to meet these learners needs: 
138.18     (1) remedial or individualized instruction in reading, 
138.19  language arts, mathematics, other content areas, or study skills 
138.20  to improve the achievement level of these learners; 
138.21     (2) additional teachers and teacher aides to provide more 
138.22  individualized instruction to these learners through individual 
138.23  tutoring, lower instructor-to-learner ratios, or team teaching; 
138.24     (3) flexible school day or school year programs that enable 
138.25  these learners to improve their achievement or that provide 
138.26  additional learning opportunities outside of the normal school 
138.27  schedule; 
138.28     (4) comprehensive and ongoing staff development consistent 
138.29  with district and site plans according to section 126.70, for 
138.30  teachers, teacher aides, principals, and other personnel to 
138.31  improve their ability to identify the needs of these learners 
138.32  and provide appropriate remediation, intervention, 
138.33  accommodations, or modifications; 
138.34     (5) instructional materials and technology appropriate for 
138.35  meeting the individual needs of these learners; 
138.36     (6) programs established under a desegregation plan 
139.1   mandated by the state board or under court order, to increase 
139.2   learning opportunities and reduce the learning gap between 
139.3   learners living in high concentrations of poverty and their 
139.4   peers; 
139.5      (7) programs to reduce truancy, encourage completion of 
139.6   high school, enhance self-concept, provide health services, 
139.7   provide nutrition services, provide a safe and secure learning 
139.8   environment, provide coordination for learners receiving 
139.9   services from other governmental agencies, provide home visiting 
139.10  services, provide psychological services to determine the level 
139.11  of social, emotional, cognitive, and intellectual development, 
139.12  and provide counseling services, guidance services, and social 
139.13  work services; 
139.14     (8) bilingual programs, bicultural programs, and programs 
139.15  for learners of limited English proficiency; and 
139.16     (9) substantial parent involvement in developing and 
139.17  implementing remedial education or intervention plans for a 
139.18  learner, including learning contracts between the school, the 
139.19  learner, and the parent that establish achievement goals and 
139.20  responsibilities of the learner and the learner's parent or 
139.21  guardian. 
139.22     Subd. 2.  [BUILDING ALLOCATION.] A district must consider 
139.23  the concentration of children from low-income families, children 
139.24  with limited English proficiency, and children with disabilities 
139.25  in each school building in the district when allocating targeted 
139.26  needs revenue. 
139.27     Subd. 3.  [SEPARATE ACCOUNT.] Targeted needs revenue shall 
139.28  be maintained in a separate account to identify expenditures for 
139.29  salaries and programs related to this revenue. 
139.30     Subd. 4.  [INTEGRATION REVENUE.] For fiscal year 1996 and 
139.31  later fiscal years, integration revenue equals the sum of 
139.32  integration aid and integration levy under section 124.912, 
139.33  subdivision 2. 
139.34     Subd. 5.  [INTEGRATION AID.] For fiscal year 1996 and later 
139.35  fiscal years integration aid equals the following amounts: 
139.36     (1) for independent school district No. 709, Duluth, 
140.1   $1,385,000; 
140.2      (2) for independent school district No. 625, St. Paul, 
140.3   $8,090,700; and 
140.4      (3) for special school district No. 1, Minneapolis, 
140.5   $9,368,300. 
140.6      Sec. 35.  [120A.35] [TARGETED NEEDS REVENUE.] 
140.7      For fiscal year 1996 and thereafter, a school district's 
140.8   targeted needs revenue equals the sum of: 
140.9      (1) assurance of mastery revenue according to section 
140.10  124.311; plus 
140.11     (2) the district's limited English proficiency revenue 
140.12  computed according to section 124.273, subdivision 1d; plus 
140.13     (3) integration revenue computed according to section 
140.14  124.312, subdivision 4. 
140.15     Sec. 36.  [120A.36] [TARGETED NEEDS AID AND LEVY.] 
140.16     Subdivision 1.  [AID.] For fiscal year 1996 and thereafter, 
140.17  a district's targeted needs aid equals the sum of its assurance 
140.18  of mastery aid according to section 124.311, its limited English 
140.19  proficiency aid according to section 124.273, subdivision 1e, 
140.20  and its integration aid according to section 124.312, 
140.21  subdivision 5. 
140.22     Subd. 2.  [LEVY.] For fiscal year 1996 and thereafter, a 
140.23  district's targeted needs levy equals the sum of its integration 
140.24  levy under section 124.912, subdivision 2, and that portion of 
140.25  its special education levy attributed to the limited English 
140.26  proficiency program. 
140.27     Sec. 37.  [120A.37] [INDIAN SCHOLARSHIPS.] 
140.28     Subdivision 1.  [AWARDS.] The state board, with the advice 
140.29  and counsel of the Minnesota Indian scholarship committee, may 
140.30  award scholarships to any Minnesota resident student who is of 
140.31  one-fourth or more Indian ancestry, who has applied for other 
140.32  existing state and federal scholarship and grant programs, and 
140.33  who, in the opinion of the board, has the capabilities to 
140.34  benefit from further education.  Scholarships must be for 
140.35  advanced or specialized education in accredited or approved 
140.36  colleges or in business, technical or vocational schools.  
141.1   Scholarships must be used to defray the total cost of education 
141.2   including tuition, incidental fees, books, supplies, 
141.3   transportation, other related school costs and the cost of board 
141.4   and room and must be paid directly to the college or school 
141.5   concerned.  The total cost of education includes all tuition and 
141.6   fees for each student enrolling in a public institution and the 
141.7   portion of tuition and fees for each student enrolling in a 
141.8   private institution that does not exceed the tuition and fees at 
141.9   a comparable public institution.  Each student shall be awarded 
141.10  a scholarship based on the total cost of the student's education 
141.11  and a standardized need analysis.  The amount and type of each 
141.12  scholarship must be determined through the advice and counsel of 
141.13  the Minnesota Indian scholarship committee.  
141.14     When an Indian student satisfactorily completes the work 
141.15  required by a certain college or school in a school year the 
141.16  student is eligible for additional scholarships, if additional 
141.17  training is necessary to reach the student's educational and 
141.18  vocational objective.  Scholarships may not be given to any 
141.19  Indian student for more than five years of study without special 
141.20  approval of the Minnesota Indian scholarship committee. 
141.21     Subd. 2.  [INDIAN SCHOLARSHIP COMMITTEE.] The Minnesota 
141.22  Indian scholarship committee is established.  The state board 
141.23  must appoint members with the assistance of the Indian affairs 
141.24  council as provided in section 3.922, subdivision 6.  Members 
141.25  must be reimbursed for expenses as provided in section 15.059, 
141.26  subdivision 6.  The state board must determine the membership 
141.27  terms and duration of the committee, which expires no later than 
141.28  June 30, 1997.  The committee must provide advice to the state 
141.29  board in awarding scholarships to eligible American Indian 
141.30  students and in administering the state board's duties regarding 
141.31  awarding of American Indian post-secondary preparation grants to 
141.32  school districts. 
141.33     Sec. 38.  [120A.38] [INDIAN POST-SECONDARY PREPARATION 
141.34  GRANTS.] 
141.35     The state board of education, with the advice of the 
141.36  Minnesota Indian scholarship committee, may make grants to 
142.1   districts to support post-secondary preparation for secondary 
142.2   pupils who are of one-fourth or more Indian ancestry and who, in 
142.3   the opinion of the superintendent, have the capabilities to 
142.4   benefit from higher education.  Distribution of the grants must 
142.5   be in accordance with a plan prepared by the state board, with 
142.6   the advice of the Minnesota Indian scholarship committee, that 
142.7   describes the objectives and methods of implementing the grant 
142.8   program, including the manner in which grants will be 
142.9   distributed in proportion to the geographical distribution of 
142.10  the Indian population of the state. 
142.11     Sec. 39.  [120A.39] [STATE REVENUE FOR AMERICAN INDIAN 
142.12  TRIBAL CONTRACT FOR GRANT SCHOOLS.] 
142.13     Subdivision 1.  [AUTHORIZATION.] Each year each American 
142.14  Indian-controlled tribal contract or grant school authorized by 
142.15  the United States Code, title 25, section 450f, that is located 
142.16  on a reservation within the state is eligible to receive tribal 
142.17  contract or grant school aid subject to the requirements in this 
142.18  subdivision. 
142.19     (a) The school must plan, conduct, and administer an 
142.20  education program that complies with the requirements of either 
142.21  this chapter and chapters 120, 121, 122, 123, 124A, 124C, 125, 
142.22  126, 129, and 268A or Code of Federal Regulations, title 25, 
142.23  sections 31.0 to 45.80. 
142.24     (b) The school must comply with all other state statutes 
142.25  governing independent school districts or their equivalent in 
142.26  the Code of Federal Regulations, title 25.  
142.27     (c) The state tribal contract or grant school aid must be 
142.28  used to supplement, and not to replace, the money for American 
142.29  Indian education programs provided by the federal government. 
142.30     Subd. 2.  [REVENUE AMOUNT.] An American Indian-controlled 
142.31  tribal contract or grant school that is located on a reservation 
142.32  within the state and that complies with the requirements in 
142.33  subdivision 1 is eligible to receive tribal contract or grant 
142.34  school aid.  The amount of aid is derived by: 
142.35     (1) multiplying the formula allowance under section 
142.36  124A.22, subdivision 2, times the difference between (a) the 
143.1   actual pupil units as defined in section 124A.02, subdivision 
143.2   15, in average daily membership, excluding section 124.17, 
143.3   subdivision 2f, and (b) the number of pupils for the current 
143.4   school year, weighted according to section 124.17, subdivision 
143.5   1, receiving benefits under section 123.933 or 123.935 or for 
143.6   which the school is receiving reimbursement under section 
143.7   126.23; 
143.8      (2) subtracting from the result in clause (1) the amount of 
143.9   money allotted to the school by the federal government through 
143.10  Indian School Equalization Program of the Bureau of Indian 
143.11  Affairs, according to Code of Federal Regulations, title 25, 
143.12  part 39, subparts A to E, for the basic program as defined by 
143.13  section 39.11, paragraph (b), for the base rate as applied to 
143.14  kindergarten through twelfth grade, excluding small school 
143.15  adjustments and additional weighting, but not money allotted 
143.16  through subparts F to L for contingency funds, school board 
143.17  training, student training, interim maintenance and minor 
143.18  repair, interim administration cost, prekindergarten, and 
143.19  operation and maintenance, and the amount of money that is 
143.20  received according to section 126.23; 
143.21     (3) dividing the result in clause (2) by the actual pupil 
143.22  units in average daily membership, excluding section 124.17, 
143.23  subdivision 2f; and 
143.24     (4) multiplying the actual pupil units, including section 
143.25  124.17, subdivision 2f, in average daily membership by the 
143.26  lesser of $1,500 or the sum of the result in clause (3) plus 
143.27  $300. 
143.28     Subd. 3.  [WAIVER.] Notwithstanding subdivision 1, 
143.29  paragraphs (a) and (b), a tribal contract or grant school: 
143.30     (1) is not subject to the Minnesota election law; 
143.31     (2) has no authority under this section to levy for 
143.32  property taxes, issue and sell bonds, or incur debt; and 
143.33     (3) may request through its managing tribal organization a 
143.34  recommendation of the state board of education, for 
143.35  consideration of the legislature, that a tribal contract or 
143.36  grant school not be subject to specified statutes related to 
144.1   independent school districts. 
144.2      Subd. 4.  [EARLY CHILDHOOD FAMILY EDUCATION REVENUE.] A 
144.3   school receiving aid under this section is eligible to receive 
144.4   early childhood family education revenue to provide early 
144.5   childhood family education programs for parents and children who 
144.6   are enrolled or eligible for enrollment in a federally 
144.7   recognized tribe.  The revenue equals 1.5 times the statewide 
144.8   average expenditure per participant under section 124.2711, 
144.9   times the number of children and parents participating full time 
144.10  in the program.  The program must comply with section 121.882, 
144.11  except that the school is not required to provide a community 
144.12  education program or establish a community education advisory 
144.13  council.  The program must be designed to improve the skills of 
144.14  parents and promote American Indian history, language, and 
144.15  culture.  The school must make affirmative efforts to encourage 
144.16  participation by fathers.  Admission may not be limited to those 
144.17  enrolled in or eligible for enrollment in a federally recognized 
144.18  tribe. 
144.19     Sec. 40.  [120A.40] [CITATION.] 
144.20     Sections 126.45 to 126.55 may be cited as the "American 
144.21  Indian Education Act of 1988." 
144.22     Sec. 41.  [120A.41] [DECLARATION OF POLICY.] 
144.23     The legislature finds that a more adequate education is 
144.24  needed for American Indian people in the state of Minnesota.  
144.25  The legislature recognizes the unique educational and culturally 
144.26  related academic needs of American Indian people.  The 
144.27  legislature also is concerned about the lack of American Indian 
144.28  teachers in the state.  Therefore, pursuant to the policy of the 
144.29  state to ensure equal educational opportunity to every 
144.30  individual, it is the purpose of sections 126.45 to 126.55 to 
144.31  provide for American Indian education programs specially 
144.32  designed to meet these unique educational or culturally related 
144.33  academic needs or both. 
144.34     Sec. 42.  [120A.42] [DEFINITIONS.] 
144.35     Subdivision 1.  [APPLICABILITY.] For the purposes of 
144.36  sections 126.45 to 126.55, the terms defined in this section 
145.1   have the meanings given them. 
145.2      Subd. 2.  [AMERICAN INDIAN CHILD.] "American Indian child" 
145.3   means any child, living on or off a reservation, who is enrolled 
145.4   or eligible for enrollment in a federally recognized tribe. 
145.5      Subd. 3.  [ADVISORY TASK FORCE.] "Advisory task force" 
145.6   means the state advisory task force on American Indian education 
145.7   programs. 
145.8      Subd. 4.  [PARTICIPATING SCHOOL; AMERICAN INDIAN 
145.9   SCHOOL.] "Participating school" and "American Indian school" 
145.10  mean a school that: 
145.11     (1) is not operated by a school district; and 
145.12     (2) is eligible for a grant under Title IV of the Indian 
145.13  Education Act for the education of American Indian children. 
145.14     Sec. 43.  [120A.43] [AMERICAN INDIAN LANGUAGE AND CULTURE 
145.15  EDUCATION PROGRAMS.] 
145.16     Subdivision 1.  [PROGRAM DESCRIBED.] American Indian 
145.17  language and culture education programs are programs in 
145.18  elementary and secondary schools enrolling American Indian 
145.19  children designed: 
145.20     (1) to make the curriculum more relevant to the needs, 
145.21  interests, and cultural heritage of American Indian pupils; 
145.22     (2) to provide positive reinforcement of the self-image of 
145.23  American Indian pupils; and 
145.24     (3) to develop intercultural awareness among pupils, 
145.25  parents, and staff.  Program components may include:  
145.26  instruction in American Indian language, literature, history, 
145.27  and culture; development of support components for staff, 
145.28  including in-service training and technical assistance in 
145.29  methods of teaching American Indian pupils; research projects, 
145.30  including experimentation with and evaluation of methods of 
145.31  relating to American Indian pupils; provision of personal and 
145.32  vocational counseling to American Indian pupils; modification of 
145.33  curriculum, instructional methods, and administrative procedures 
145.34  to meet the needs of American Indian pupils; and establishment 
145.35  of cooperative liaisons with nonsectarian nonpublic, community, 
145.36  tribal or alternative schools offering curricula which reflect 
146.1   American Indian culture.  Districts offering programs may make 
146.2   contracts for the provision of program components by 
146.3   nonsectarian nonpublic, community, tribal or alternative 
146.4   schools.  These programs may also be provided as components of 
146.5   early childhood and family education programs. 
146.6      Subd. 2.  [VOLUNTARY ENROLLMENT.] Enrollment in American 
146.7   Indian language and culture education programs must be 
146.8   voluntary.  School districts and participating schools must make 
146.9   affirmative efforts to encourage participation.  They shall 
146.10  encourage parents to visit classes or come to school for a 
146.11  conference explaining the nature of the program and provide 
146.12  visits by school staff to parents' homes to explain the nature 
146.13  of the program. 
146.14     Subd. 3.  [ENROLLMENT OF OTHER CHILDREN; SHARED TIME 
146.15  ENROLLMENT.] To the extent it is economically feasible, a 
146.16  district or participating school may make provision for the 
146.17  voluntary enrollment of non-American Indian children in the 
146.18  instructional components of an American Indian language and 
146.19  culture education program in order that they may acquire an 
146.20  understanding of the cultural heritage of the American Indian 
146.21  children for whom that particular program is designed.  However, 
146.22  in determining eligibility to participate in a program, priority 
146.23  must be given to American Indian children.  American Indian 
146.24  children and other children enrolled in an existing nonpublic 
146.25  school system may be enrolled on a shared time basis in American 
146.26  Indian language and culture education programs. 
146.27     Subd. 4.  [LOCATION OF PROGRAMS.] American Indian language 
146.28  and culture education programs must be located in facilities in 
146.29  which regular classes in a variety of subjects are offered on a 
146.30  daily basis. 
146.31     Subd. 5.  [ASSIGNMENT OF STUDENTS.] A school district or 
146.32  participating school must not, in providing these programs, 
146.33  assign students to schools in a way which will have the effect 
146.34  of promoting segregation of students by race, sex, color, or 
146.35  national origin. 
146.36     Subd. 6.  [NONVERBAL COURSES AND EXTRACURRICULAR 
147.1   ACTIVITIES.] In predominantly nonverbal subjects, such as art, 
147.2   music, and physical education, American Indian children shall 
147.3   participate fully and on an equal basis with their 
147.4   contemporaries in school classes provided for these subjects.  
147.5   Every school district or participating school must ensure to 
147.6   children enrolled in American Indian language and culture 
147.7   education programs an equal and meaningful opportunity to 
147.8   participate fully with other children in all extracurricular 
147.9   activities.  This subdivision shall not be construed to prohibit 
147.10  instruction in nonverbal subjects or extracurricular activities 
147.11  which relate to the cultural heritage of the American Indian 
147.12  children, or which are otherwise necessary to accomplish the 
147.13  objectives described in sections 126.45 to 126.55. 
147.14     Sec. 44.  [120A.44] [TEACHERS; LICENSES; EXEMPTIONS.] 
147.15     Subdivision 1.  [AMERICAN INDIAN LANGUAGE AND CULTURE 
147.16  EDUCATION LICENSES.] The board of teaching must grant initial 
147.17  and continuing teaching licenses in American Indian language and 
147.18  culture education that bear the same duration as other initial 
147.19  and continuing licenses.  The board must grant licenses to 
147.20  persons who present satisfactory evidence that they: 
147.21     (a) Possess competence in an American Indian language or 
147.22  possess unique qualifications relative to or knowledge and 
147.23  understanding of American Indian history and culture; or 
147.24     (b) Possess a bachelor's degree or other academic degree 
147.25  approved by the board or meet such requirements as to course of 
147.26  study and training as the board may prescribe, or possess such 
147.27  relevant experience as the board may prescribe. 
147.28     This evidence may be presented by affidavits, resolutions, 
147.29  or by such other methods as the board may prescribe.  
147.30  Individuals may present applications for licensure on their own 
147.31  behalf or these applications may be submitted by the 
147.32  superintendent or other authorized official of a school 
147.33  district, participating school, or an American Indian school. 
147.34     Subd. 2.  [PERSONS HOLDING GENERAL TEACHING LICENSES.] A 
147.35  person holding a general teaching license who presents the board 
147.36  with satisfactory evidence of competence in an American Indian 
148.1   language, or knowledge and understanding of American Indian 
148.2   history and culture may be licensed under this section. 
148.3      Subd. 3.  [RESOLUTION OR LETTER.] All persons applying for 
148.4   a license under this section must submit to the board a 
148.5   resolution or letter of support signed by an American Indian 
148.6   tribal government or its designee.  All persons holding a 
148.7   license under this section on July 1, 1995, must have on file or 
148.8   file with the board a resolution or letter of support signed by 
148.9   a tribal government or its designee by January 1, 1996, or the 
148.10  next renewal date of the license thereafter. 
148.11     Subd. 4.  [EMPLOYMENT OF TEACHERS.] Teachers employed in an 
148.12  American Indian language and culture education program pursuant 
148.13  to sections 126.45 to 126.55 shall not be employed to replace 
148.14  any presently employed teacher who otherwise would not be 
148.15  replaced. 
148.16     Subd. 5.  [TEACHER PREPARATION PROGRAMS.] For the purpose 
148.17  of licensing American Indian language and culture education 
148.18  teachers, the board may approve programs at colleges or 
148.19  universities designed for their training subject to the approval 
148.20  of the state board of education. 
148.21     Subd. 6.  [PERSONS ELIGIBLE FOR EMPLOYMENT; EXEMPTIONS.] 
148.22  Any person licensed under this section shall be eligible for 
148.23  employment by a school board or a participating school as a 
148.24  teacher in an American Indian language and culture education 
148.25  program in which the American Indian language or culture in 
148.26  which the person is licensed is taught.  A school district or 
148.27  participating school may prescribe only those additional 
148.28  qualifications for teachers licensed under this section as are 
148.29  approved by the board of teaching.  Any school board or 
148.30  participating school upon request may be exempted from the 
148.31  licensure requirements of this section in the hiring of one or 
148.32  more American Indian language and culture education teachers for 
148.33  any school year in which compliance would, in the opinion of the 
148.34  commissioner, create a hardship in the securing of the teachers. 
148.35     Subd. 7.  [PERSONS SERVING UNDER EXEMPTIONS; LICENSURE; 
148.36  TENURE.] An American Indian language and culture education 
149.1   teacher serving under an exemption as provided in subdivision 6 
149.2   shall be granted a license as soon as that teacher achieves the 
149.3   qualifications for the license.  Not more than one year of 
149.4   service by an American Indian language and culture education 
149.5   teacher under an exemption shall be credited to the teacher for 
149.6   the purposes of section 125.12 and not more than two years shall 
149.7   be credited for the purposes of section 125.17; and the one or 
149.8   two years shall be deemed to precede immediately and be 
149.9   consecutive with the year in which a teacher becomes licensed. 
149.10     Subd. 8.  [COMPENSATION.] A teacher holding a license or 
149.11  exemption under this section shall be compensated according to a 
149.12  schedule which is at least equivalent to that applicable to 
149.13  teachers holding general licenses. 
149.14     Subd. 9.  [AFFIRMATIVE EFFORTS IN HIRING.] In hiring for 
149.15  all positions in these programs, school districts and 
149.16  participating schools must give preference to and make 
149.17  affirmative efforts to seek, recruit, and employ persons who 
149.18  share the culture of the American Indian children who are 
149.19  enrolled in the program.  The district or participating school 
149.20  shall provide procedures for the involvement of the parent 
149.21  advisory committees in designing the procedures for the 
149.22  recruitment, screening and selection of applicants.  This 
149.23  subdivision shall not be construed to limit the school board's 
149.24  authority to hire and discharge personnel. 
149.25     Sec. 45.  [120A.45] [TEACHER'S AIDES; COMMUNITY 
149.26  COORDINATORS.] 
149.27     In addition to employing American Indian language and 
149.28  culture education teachers, each district or participating 
149.29  school providing programs pursuant to sections 126.45 to 126.55 
149.30  may employ teachers' aides.  Teachers' aides must not be 
149.31  employed for the purpose of supplanting American Indian language 
149.32  and culture education teachers. 
149.33     Any district or participating school which conducts 
149.34  American Indian language and culture education programs pursuant 
149.35  to sections 126.45 to 126.55 must employ one or more full time 
149.36  or part time community coordinators if there are 100 or more 
150.1   students enrolled in the program.  Community coordinators shall 
150.2   promote communication understanding, and cooperation between the 
150.3   schools and the community and shall visit the homes of children 
150.4   who are to be enrolled in an American Indian language and 
150.5   culture education program in order to convey information about 
150.6   the program. 
150.7      Sec. 46.  [120A.46] [RECRUITING AND RETAINING INDIAN 
150.8   TEACHERS.] 
150.9      This section applies to a board of a district in which 
150.10  there are at least ten American Indian children enrolled.  The 
150.11  board must actively recruit teacher applicants who are American 
150.12  Indian from the time it is reasonably expected that a position 
150.13  will become available until the position is filled or September 
150.14  1, whichever is earlier.  Notwithstanding section 125.12, 
150.15  subdivision 4, 6a, or 6b, 125.17, subdivisions 3 and 11, any 
150.16  other law to the contrary, or any provision of a contract 
150.17  entered into after May 7, 1988, to the contrary, when placing a 
150.18  teacher on unrequested leave of absence, the board may retain a 
150.19  probationary teacher or a teacher with less seniority in order 
150.20  to retain an American Indian teacher. 
150.21     Sec. 47.  [120A.47] [PARENT AND COMMUNITY PARTICIPATION.] 
150.22     Subdivision 1.  [PARENT COMMITTEE.] School boards and 
150.23  American Indian schools must provide for the maximum involvement 
150.24  of parents of children enrolled in education programs, including 
150.25  language and culture education programs, programs for elementary 
150.26  and secondary grades, special education programs, and support 
150.27  services.  Accordingly, the board of a school district in which 
150.28  there are ten or more American Indian children enrolled and each 
150.29  American Indian school must establish a parent committee.  If a 
150.30  committee whose membership consists of a majority of parents of 
150.31  American Indian children has been or is established according to 
150.32  federal, tribal, or other state law, that committee may serve as 
150.33  the committee required by this section and is subject to, at 
150.34  least, the requirements of this subdivision and subdivision 2.  
150.35     The parent committee must develop its recommendations in 
150.36  consultation with the curriculum advisory committee required by 
151.1   section 126.666, subdivision 2.  This committee must afford 
151.2   parents the necessary information and the opportunity 
151.3   effectively to express their views concerning all aspects of 
151.4   American Indian education and the educational needs of the 
151.5   American Indian children enrolled in the school or program.  The 
151.6   committee must also address the need for adult education 
151.7   programs for American Indian people in the community.  The board 
151.8   or American Indian school must ensure that programs are planned, 
151.9   operated, and evaluated with the involvement of and in 
151.10  consultation with parents of children served by the programs. 
151.11     Subd. 2.  [RESOLUTION OF CONCURRENCE.] Prior to December 1, 
151.12  the board or American Indian school must submit to the 
151.13  department a copy of a resolution adopted by the parent 
151.14  committee.  The copy must be signed by the chair of the 
151.15  committee and must state whether the committee concurs with the 
151.16  educational programs for American Indian children offered by the 
151.17  school board or American Indian school.  If the committee does 
151.18  not concur with the educational programs, the reasons for 
151.19  nonconcurrence and recommendations shall be submitted with the 
151.20  resolution.  By resolution, the board must respond, in cases of 
151.21  nonconcurrence, to each recommendation made by the committee and 
151.22  state its reasons for not implementing the recommendations. 
151.23     Subd. 3.  [MEMBERSHIP.] The committee must be composed of 
151.24  parents of children eligible to be enrolled in American Indian 
151.25  education programs; secondary students eligible to be served; 
151.26  American Indian language and culture education teachers and 
151.27  aides; American Indian teachers; counselors; adult American 
151.28  Indian people enrolled in educational programs; and 
151.29  representatives from community groups.  A majority of each 
151.30  committee must be parents of children enrolled or eligible to be 
151.31  enrolled in the programs.  The number of parents of American 
151.32  Indian and non-American Indian children shall reflect 
151.33  approximately the proportion of children of those groups 
151.34  enrolled in the programs. 
151.35     Subd. 4.  [ALTERNATE COMMITTEE.] If the organizational 
151.36  membership or the board of directors of an American Indian 
152.1   school consists of parents of children attending the school, 
152.2   that membership or board may serve also as the parent committee. 
152.3      Sec. 48.  [120A.48] [STATE BOARD OF EDUCATION DUTIES.] 
152.4      Subdivision 1.  [COMMUNITY INVOLVEMENT.] The state board 
152.5   must provide for the maximum involvement of the state committees 
152.6   on American Indian education, parents of American Indian 
152.7   children, secondary students eligible to be served, American 
152.8   Indian language and culture education teachers, American Indian 
152.9   teachers, teachers' aides, representatives of community groups, 
152.10  and persons knowledgeable in the field of American Indian 
152.11  education, in the formulation of policy and procedures relating 
152.12  to the administration of sections 126.45 to 126.55.  
152.13     Subd. 2.  [TECHNICAL ASSISTANCE.] The commissioner shall 
152.14  provide technical assistance to districts, schools and 
152.15  post-secondary institutions for preservice and in-service 
152.16  training for American Indian education teachers and teacher's 
152.17  aides, teaching methods, curriculum development, testing and 
152.18  testing mechanisms, and the development of materials for 
152.19  American Indian education programs. 
152.20     Subd. 3.  [APPLICATION FOR FUNDS.] The commissioner shall 
152.21  apply for money which may be available under federal programs 
152.22  for American Indian education, including funds for 
152.23  administration, demonstration projects, training, technical 
152.24  assistance, planning and evaluation. 
152.25     Sec. 49.  [120A.49] [COMMITTEES ON AMERICAN INDIAN 
152.26  EDUCATION PROGRAMS.] 
152.27     Subdivision 1.  [ESTABLISHMENT.] The state board of 
152.28  education shall create one or more American Indian education 
152.29  committees.  Members must include representatives of tribal 
152.30  bodies, community groups, parents of children eligible to be 
152.31  served by the programs, American Indian administrators and 
152.32  teachers, persons experienced in the training of teachers for 
152.33  American Indian education programs, persons involved in programs 
152.34  for American Indian children in American Indian schools, and 
152.35  persons knowledgeable in the field of American Indian 
152.36  education.  Members shall be appointed so as to be 
153.1   representative of significant segments of the population of 
153.2   American Indians.  
153.3      Subd. 2.  [ADVISE STATE BOARD OF EDUCATION.] Each committee 
153.4   on American Indian education programs shall advise the state 
153.5   board in the administration of its duties under sections 126.45 
153.6   to 126.55 and other programs for the education of American 
153.7   Indian people, as determined by the state board.  
153.8      Subd. 3.  [EXPENSES.] Each committee must be reimbursed for 
153.9   expenses according to section 15.059, subdivision 6.  The state 
153.10  board must determine the membership terms and the duration of 
153.11  each committee, which expire no later than June 30, 1997. 
153.12     Sec. 50.  [120A.50] [CONTINUATION OF INDIAN EDUCATION 
153.13  GRANTS.] 
153.14     Subdivision 1.  [GRANTS; PROCEDURES.] Each fiscal year the 
153.15  state board of education must make grants to no fewer than six 
153.16  American Indian language and culture education programs.  At 
153.17  least three programs must be in urban areas and at least three 
153.18  must be on or near reservations.  The board of a local district, 
153.19  a participating school or a group of boards may develop a 
153.20  proposal for grants in support of American Indian language and 
153.21  culture education programs.  Proposals may provide for contracts 
153.22  for the provision of program components by nonsectarian 
153.23  nonpublic, community, tribal, or alternative schools.  The 
153.24  commissioner shall prescribe the form and manner of application 
153.25  for grants, and no grant shall be made for a proposal not 
153.26  complying with the requirements of sections 126.45 to 126.55.  
153.27  The state board must submit all proposals to the state advisory 
153.28  task force on American Indian language and culture education 
153.29  programs for its recommendations concerning approval, 
153.30  modification, or disapproval and the amounts of grants to 
153.31  approved programs. 
153.32     Subd. 2.  [PLANS.] Each district or participating school 
153.33  submitting a proposal under subdivision 1 must develop and 
153.34  submit with the proposal a plan which shall: 
153.35     (a) Identify the measures to be used to meet the 
153.36  requirements of sections 126.45 to 126.55; 
154.1      (b) Identify the activities, methods and programs to meet 
154.2   the identified educational needs of the children to be enrolled 
154.3   in the program; 
154.4      (c) Describe how district goals and objectives as well as 
154.5   the objectives of sections 126.45 to 126.55 are to be achieved; 
154.6      (d) Demonstrate that required and elective courses as 
154.7   structured do not have a discriminatory effect within the 
154.8   meaning of section 126.48, subdivision 5; 
154.9      (e) Describe how each school program will be organized, 
154.10  staffed, coordinated, and monitored; and 
154.11     (f) Project expenditures for programs under sections 126.45 
154.12  to 126.55. 
154.13     Subd. 3.  [ADDITIONAL REQUIREMENTS.] Each district 
154.14  receiving a grant under this section must each year conduct a 
154.15  count of American Indian children in the schools of the 
154.16  district; test for achievement; identify the extent of other 
154.17  educational needs of the children to be enrolled in the American 
154.18  Indian language and culture education program; and classify the 
154.19  American Indian children by grade, level of educational 
154.20  attainment, age and achievement.  Participating schools must 
154.21  maintain records concerning the needs and achievements of 
154.22  American Indian children served. 
154.23     Subd. 4.  [NONDISCRIMINATION; TESTING.] In accordance with 
154.24  recognized professional standards, all testing and evaluation 
154.25  materials and procedures utilized for the identification, 
154.26  testing, assessment and classification of American Indian 
154.27  children must be selected and administered so as not to be 
154.28  racially or culturally discriminatory and must be valid for the 
154.29  purpose of identifying, testing, assessing, and classifying 
154.30  American Indian children. 
154.31     Subd. 5.  [RECORDS.] Participating schools and districts 
154.32  must keep records and afford access to them as the commissioner 
154.33  finds necessary to ensure that American Indian language and 
154.34  culture education programs are implemented in conformity with 
154.35  sections 126.45 to 126.55.  Each school district or 
154.36  participating school must keep accurate, detailed, and separate 
155.1   revenue and expenditure accounts for pilot American Indian 
155.2   language and culture education programs funded under this 
155.3   section. 
155.4      Subd. 6.  [MONEY FROM OTHER SOURCES.] A district or 
155.5   participating school providing American Indian language and 
155.6   culture education programs shall be eligible to receive moneys 
155.7   for these programs from other government agencies and from 
155.8   private sources when the moneys are available. 
155.9      Subd. 7.  [EXCEPTIONS.] Nothing in sections 126.45 to 
155.10  126.55 shall be construed as prohibiting a district or school 
155.11  from implementing an American Indian language and culture 
155.12  education program which is not in compliance with sections 
155.13  126.45 to 126.55 if the proposal and plan for that program is 
155.14  not funded pursuant to this section. 
155.15     Sec. 51.  [120A.51] [CONSTRUCTION.] 
155.16     Nothing in the provisions of sections 126.45 to 126.55 
155.17  shall be construed to violate the provisions of section 127.08 
155.18  or chapter 363.  Programs and activities pursuant to sections 
155.19  126.45 to 126.55 shall be deemed to be positive action programs 
155.20  to combat discrimination. 
155.21     Sec. 52.  [120A.52] [CURRENT FUNDING FOR SECONDARY 
155.22  VOCATIONAL EDUCATION.] 
155.23     Subdivision 1.  [AIDS PAID ON CURRENT FUNDING BASIS.] The 
155.24  state shall pay aids for secondary vocational programs on a 
155.25  current funding basis. 
155.26     Subd. 2.  [LIMIT.] The commissioner may withhold all or any 
155.27  portion of the aid paid under this section for a secondary 
155.28  vocational education program which receives funds from any other 
155.29  source.  A district or center must not receive a total amount of 
155.30  state aid pursuant to this section which, when added to funds 
155.31  from other sources, will provide the program an amount for 
155.32  salaries and travel which exceeds 100 percent of the amount of 
155.33  its expenditures for salaries and travel in the program. 
155.34     Subd. 3.  [SECONDARY VOCATIONAL AID.] A district's 
155.35  secondary vocational education aid for a fiscal year equals the 
155.36  lesser of: 
156.1      (a) $80 times the district's average daily membership in 
156.2   grades 10 to 12; or 
156.3      (b) 25 percent of approved expenditures for the following: 
156.4      (1) salaries paid to essential, licensed personnel 
156.5   providing direct instructional services to students in that 
156.6   fiscal year for services rendered in the district's approved 
156.7   secondary vocational education programs; 
156.8      (2) contracted services provided by a public or private 
156.9   agency other than a Minnesota school district or cooperative 
156.10  center under subdivision 3a; 
156.11     (3) necessary travel between instructional sites by 
156.12  licensed secondary vocational education personnel; 
156.13     (4) necessary travel by licensed secondary vocational 
156.14  education personnel for vocational student organization 
156.15  activities held within the state for instructional purposes; 
156.16     (5) curriculum development activities that are part of a 
156.17  five-year plan for improvement based on program assessment; 
156.18     (6) necessary travel by licensed secondary vocational 
156.19  education personnel for noncollegiate credit bearing 
156.20  professional development; and 
156.21     (7) specialized vocational instructional supplies. 
156.22     (c) Up to ten percent of a district's secondary vocational 
156.23  aid may be spent on equipment purchases.  Districts using 
156.24  secondary vocational aid for equipment purchases must report to 
156.25  the department on the improved learning opportunities for 
156.26  students that result from the investment in equipment. 
156.27     Subd. 4.  [ALLOCATION FROM COOPERATIVE CENTERS AND 
156.28  INTERMEDIATE DISTRICTS.] For purposes of subdivisions 3, 
156.29  paragraph (b), and 5, paragraph (b), a cooperative center or an 
156.30  intermediate district must allocate its approved expenditures 
156.31  for secondary vocational education programs among participating 
156.32  districts.  For purposes of subdivision 5, paragraph (a), a 
156.33  cooperative center or an intermediate district must allocate its 
156.34  secondary vocational aid for fiscal year 1994 among 
156.35  participating districts.  For 1995 and later fiscal years, 
156.36  secondary vocational aid for services provided by a cooperative 
157.1   center or an intermediate district shall be paid to the 
157.2   participating district. 
157.3      Subd. 5.  [AID GUARANTEE.] Notwithstanding subdivision 3, 
157.4   the secondary vocational education aid for a district is not 
157.5   less than the lesser of: 
157.6      (a) 95 percent of the secondary vocational education aid 
157.7   the district received for the previous fiscal year; or 
157.8      (b) 40 percent of the approved expenditures for secondary 
157.9   vocational programs included in subdivision 3, paragraph (b). 
157.10     Subd. 6.  [COMPLIANCE WITH RULES.] Aid must be paid under 
157.11  this section only for services rendered or for costs incurred in 
157.12  secondary vocational education programs approved by the 
157.13  commissioner and operated in accordance with rules promulgated 
157.14  by the state board.  The rules must provide minimum 
157.15  student-staff ratios required for a secondary vocational 
157.16  education program area to qualify for this aid.  The rules must 
157.17  not require the collection of data at the program or course 
157.18  level to calculate secondary vocational aid.  The rules must not 
157.19  require any minimum number of administrative staff, any minimum 
157.20  period of coordination time or extended employment for secondary 
157.21  vocational education personnel, or the availability of 
157.22  vocational student activities or organizations for a secondary 
157.23  vocational education program to qualify for this aid.  The 
157.24  requirement in these rules that program components be available 
157.25  for a minimum number of hours must not be construed to prevent 
157.26  pupils from enrolling in secondary vocational education courses 
157.27  on an exploratory basis for less than a full school year.  The 
157.28  state board must not require a district to offer more than four 
157.29  credits or 560 hours of vocational education course offerings in 
157.30  any school year.  Rules relating to secondary vocational 
157.31  education programs must not incorporate the provisions of the 
157.32  state plan for vocational education by reference.  The aid shall 
157.33  be paid only for services rendered and for costs incurred by 
157.34  essential, licensed personnel who meet the work experience 
157.35  requirements for licensure pursuant to the rules of the state 
157.36  board.  Licensed personnel means persons holding a valid 
158.1   secondary vocational license issued by the commissioner.  If an 
158.2   average of five or fewer secondary full-time equivalent students 
158.3   are enrolled per teacher in an approved post-secondary program 
158.4   at intermediate district No. 287, 916, or 917, licensed 
158.5   personnel means persons holding a valid vocational license 
158.6   issued by the commissioner, the state board for vocational 
158.7   technical education, or the board of trustees of the Minnesota 
158.8   state colleges and universities.  Notwithstanding section 
158.9   124.15, the commissioner may modify or withdraw the program or 
158.10  aid approval and withhold aid under this section without 
158.11  proceeding under section 124.15 at any time.  To do so, the 
158.12  commissioner must determine that the program does not comply 
158.13  with rules of the state board or that any facts concerning the 
158.14  program or its budget differ from the facts in the district's 
158.15  approved application. 
158.16     Subd. 7.  [AID FOR CONTRACTED SERVICES.] In addition the 
158.17  provisions of subdivisions 2 and 6, a school district or 
158.18  cooperative center may contract with a public or private agency 
158.19  other than a Minnesota school district or cooperative center for 
158.20  the provision of secondary vocational education services.  The 
158.21  state board must promulgate rules relating to program approval 
158.22  procedures and criteria for these contracts and aid must be paid 
158.23  only for contracts approved by the commissioner.  The district 
158.24  or cooperative center contracting for these services must be 
158.25  construed to be providing the services.  
158.26     Subd. 8.  [DISTRICT REPORTS.] Each district or cooperative 
158.27  center must report data to the department for all secondary 
158.28  vocational education programs as required by the department to 
158.29  implement the secondary vocational aid formula. 
158.30     Sec. 53.  [120A.53] [SECONDARY VOCATIONAL EDUCATION FOR 
158.31  CHILDREN WITH A DISABILITY.] 
158.32     Subdivision 1.  [PURPOSE.] The purpose of this section is 
158.33  to provide a method to fund programs for secondary vocational 
158.34  education for children with a disability.  As used in this 
158.35  section, the term "children with a disability" shall have the 
158.36  meaning ascribed to it in section 120.03. 
159.1      Subd. 2.  [DEFINITIONS.] For the purposes of this section 
159.2   and section 124.321, the definitions in this subdivision apply. 
159.3      (a) "Base year" for fiscal year 1996 means fiscal year 1995.
159.4   Base year for later fiscal years means the second fiscal year 
159.5   preceding the fiscal year for which aid will be paid. 
159.6      (b) "Basic revenue" has the meaning given it in section 
159.7   124A.22, subdivision 2.  For the purposes of computing basic 
159.8   revenue pursuant to this section, each child with a disability 
159.9   shall be counted as prescribed in section 124.17, subdivision 1. 
159.10     (c) "Average daily membership" has the meaning given it in 
159.11  section 124.17. 
159.12     (d) "Program growth factor" means 1.00 for fiscal year 1998 
159.13  and later. 
159.14     (e) "Aid percentage factor" means 60 percent for fiscal 
159.15  year 1996, 70 percent for fiscal year 1997, 80 percent for 
159.16  fiscal year 1998, 90 percent for fiscal year 1999, and 100 
159.17  percent for fiscal year 2000 and later. 
159.18     Subd. 3.  [BASE REVENUE.] The secondary vocational disabled 
159.19  program base revenue equals the sum of the following amounts 
159.20  computed using base year data: 
159.21     (1) 68 percent of the salary of each essential licensed 
159.22  person who provides direct instructional services to students 
159.23  employed during that fiscal year for services rendered in that 
159.24  district's secondary vocational education programs for children 
159.25  with a disability; 
159.26     (2) 47 percent of the costs of necessary equipment for 
159.27  secondary vocational education programs for children with a 
159.28  disability; 
159.29     (3) 47 percent of the costs of necessary travel between 
159.30  instructional sites by secondary vocational education teachers 
159.31  of children with a disability but not including travel to and 
159.32  from local, regional, district, state, or national vocational 
159.33  student organization meetings; 
159.34     (4) 47 percent of the costs of necessary supplies for 
159.35  secondary vocational education programs for children with a 
159.36  disability but not to exceed an average of $47 in any one school 
160.1   year for each child with a disability receiving these services; 
160.2      (5) for secondary vocational education programs for 
160.3   children with disabilities provided by a contract approved by 
160.4   the commissioner with public, private, or voluntary agencies 
160.5   other than a Minnesota school district or cooperative center, in 
160.6   place of programs provided by the district, 52 percent of the 
160.7   difference between the amount of the contract and the basic 
160.8   revenue of the district for that pupil for the fraction of the 
160.9   school day the pupil receives services under the contract; 
160.10     (6) for secondary vocational education programs for 
160.11  children with disabilities provided by a contract approved by 
160.12  the commissioner with public, private, or voluntary agencies 
160.13  other than a Minnesota school district or cooperative center, 
160.14  that are supplementary to a full educational program provided by 
160.15  the school district, 52 percent of the amount of the contract; 
160.16  and 
160.17     (7) for a contract approved by the commissioner with 
160.18  another Minnesota school district or cooperative center for 
160.19  vocational evaluation services for children with a disability 
160.20  for children that are not yet enrolled in grade 12, 52 percent 
160.21  of the amount of the contract. 
160.22     Subd. 4.  [ADJUSTED SECONDARY VOCATIONAL-DISABLED BASE 
160.23  REVENUE.] For fiscal year 1996 and later, a district's adjusted 
160.24  secondary vocational-disabled base revenue equals the district's 
160.25  secondary vocational-disabled base revenue times the ratio of 
160.26  the district's average daily membership for the current school 
160.27  year to the district's average daily membership for the base 
160.28  year. 
160.29     Subd. 5.  [STATE TOTAL SECONDARY VOCATIONAL-DISABLED 
160.30  REVENUE.] The state total secondary vocational-disabled revenue 
160.31  for fiscal year 1996 equals $8,520,000.  The state total 
160.32  secondary vocational-disabled revenue for fiscal year 1997 
160.33  equals $8,830,000.  The state total secondary 
160.34  vocational-disabled revenue for later fiscal years equals:  
160.35     (1) the state total secondary vocational-disabled revenue 
160.36  for the preceding fiscal year; times 
161.1      (2) the program growth factor; times 
161.2      (3) the ratio of the state total average daily membership 
161.3   for the current fiscal year to the state total average daily 
161.4   membership for the preceding fiscal year. 
161.5      Subd. 6.  [SCHOOL DISTRICT SECONDARY VOCATIONAL-DISABLED 
161.6   REVENUE.] (a) A district's secondary vocational-disabled revenue 
161.7   for fiscal year 1996 and later equals the state total secondary 
161.8   vocational-disabled revenue, minus the amount determined under 
161.9   paragraph (b), times the ratio of the district's adjusted 
161.10  secondary vocational-disabled base revenue to the state total 
161.11  adjusted secondary vocational-disabled base revenue. 
161.12     (b) Notwithstanding paragraph (a), if the secondary 
161.13  vocational-disabled base revenue for a district equals zero and 
161.14  no district residents were enrolled in secondary 
161.15  vocational-disabled programs during the base year, the secondary 
161.16  vocational-disabled revenue equals the amount computed according 
161.17  to subdivision 2d using current year data. 
161.18     Subd. 7.  [SCHOOL DISTRICT SECONDARY VOCATIONAL-DISABLED 
161.19  AID.] A district's secondary vocational-disabled aid for fiscal 
161.20  year 1996 and later equals the district's secondary 
161.21  vocational-disabled revenue times the aid percentage factor for 
161.22  that year. 
161.23     Subd. 8.  [APPROVED PROGRAMS.] The aid provided pursuant to 
161.24  this section must be paid only for services rendered or for the 
161.25  costs which are incurred in secondary vocational education 
161.26  programs for children with a disability which are approved by 
161.27  the commissioner and operated in accordance with rules 
161.28  promulgated by the state board.  These rules are subject to the 
161.29  restrictions provided in section 124.573, subdivision 3.  The 
161.30  procedure for application for approval of these programs is as 
161.31  provided in section 124.32, subdivisions 7 and 10.  The 
161.32  application review process must be conducted by the vocational 
161.33  education section of the state department. 
161.34     Subd. 9.  [PAYMENT TO DISTRICT.] Aid pursuant to this 
161.35  section must be paid to the district or cooperative center 
161.36  providing the services.  Aid received by a district or center 
162.1   from any source for secondary vocational education for children 
162.2   with a disability must be utilized solely for that purpose. 
162.3      Subd. 10.  [PROHIBITED AID.] A district shall not receive 
162.4   aid pursuant to section 124.3201, 124.3202, 124.321, or 124.573 
162.5   for salaries, supplies, travel or equipment for which the 
162.6   district receives aid pursuant to this section. 
162.7      Subd. 11.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
162.8   INTERMEDIATE DISTRICTS.] For purposes of this section and 
162.9   section 124.321, a cooperative center or an intermediate 
162.10  district must allocate its approved expenditures for secondary 
162.11  vocational programs for children with a disability among 
162.12  participating school districts.  Aid for secondary vocational 
162.13  programs for children with a disability for services provided by 
162.14  a cooperative or intermediate district must be paid to the 
162.15  participating districts. 
162.16     Sec. 54.  [120A.54] [GRADUATION INCENTIVES PROGRAM.] 
162.17     Subdivision 1.  [PURPOSE.] The legislature finds that it is 
162.18  critical to provide options for children to succeed in school.  
162.19  Therefore, the purpose of this section is to provide incentives 
162.20  for and encourage all Minnesota students who have experienced or 
162.21  are experiencing difficulty in the traditional education system 
162.22  to enroll in alternative programs. 
162.23     Subd. 2.  [ELIGIBLE PUPILS.] The following pupils are 
162.24  eligible to participate in the education options program:  
162.25     (a) any pupil under the age of 21 who:  
162.26     (1) performs substantially below the performance level for 
162.27  pupils of the same age in a locally determined achievement test; 
162.28  or 
162.29     (2) is at least one year behind in satisfactorily 
162.30  completing coursework or obtaining credits for graduation; or 
162.31     (3) is pregnant or is a parent; or 
162.32     (4) has been assessed as chemically dependent; or 
162.33     (5) has been excluded or expelled according to sections 
162.34  127.26 to 127.39; or 
162.35     (6) has been referred by a school district for enrollment 
162.36  in an eligible program or a program pursuant to section 126.23; 
163.1   or 
163.2      (7) is a victim of physical or sexual abuse; or 
163.3      (8) has experienced mental health problems; or 
163.4      (9) has experienced homelessness sometime within six months 
163.5   before requesting a transfer to an eligible program; or 
163.6      (10) speaks English as a second language or has limited 
163.7   English proficiency; or 
163.8      (b) any person who is at least 21 years of age and who:  
163.9      (1) has received fewer than 14 years of public or nonpublic 
163.10  education, beginning at age 5; 
163.11     (2) has not completed the requirements for a high school 
163.12  diploma; and 
163.13     (3) at the time of application, (i) is eligible for 
163.14  reemployment insurance benefits or has exhausted the benefits, 
163.15  (ii) is eligible for, or is receiving income maintenance and 
163.16  support services, as defined in section 268.0111, subdivision 5, 
163.17  or (iii) is eligible for services under the displaced homemaker 
163.18  program, state wage-subsidy program, or any programs under the 
163.19  federal Jobs Training Partnership Act or its successor. 
163.20     Subd. 3.  [ELIGIBLE PROGRAMS.] (a) A pupil who is eligible 
163.21  according to subdivision 2 may enroll in area learning centers 
163.22  under sections 124C.45 to 124C.48, or according to section 
163.23  121.11, subdivision 12. 
163.24     (b) A pupil who is eligible according to subdivision 2 and 
163.25  who is between the ages of 16 and 21 may enroll in 
163.26  post-secondary courses under section 123.3514. 
163.27     (c) A pupil who is eligible under subdivision 2, may enroll 
163.28  in any public elementary or secondary education program.  
163.29  However, a person who is eligible according to subdivision 2, 
163.30  clause (b), may enroll only if the school board has adopted a 
163.31  resolution approving the enrollment. 
163.32     (d) A pupil who is eligible under subdivision 2, may enroll 
163.33  in any nonprofit, nonpublic, nonsectarian school that has 
163.34  contracted with the serving school district to provide 
163.35  educational services. 
163.36     (e) A pupil who is between the ages of 16 and 21 may enroll 
164.1   in any adult basic education programs approved under section 
164.2   124.26 and operated under the community education program 
164.3   contained in section 121.88. 
164.4      Subd. 4.  [ADDITIONAL ELIGIBLE PROGRAM.] A pupil who is at 
164.5   least 16 years of age, who is eligible under subdivision 2, 
164.6   clause (a), and who has been enrolled only in a public school, 
164.7   if the pupil has been enrolled in any school, during the year 
164.8   immediately before transferring under this subdivision, may 
164.9   transfer to any nonprofit, nonpublic school that has contracted 
164.10  with the serving school district to provide nonsectarian 
164.11  educational services.  Such a school must enroll every eligible 
164.12  pupil who seeks to transfer to the school under this program 
164.13  subject to available space. 
164.14     Subd. 5.  [PUPIL ENROLLMENT.] Any eligible pupil may apply 
164.15  to enroll in an eligible program.  Approval of the resident 
164.16  district is not required for: 
164.17     (1) an eligible pupil to enroll in any eligible program in 
164.18  a nonresident district under subdivision 3 or 4 or an area 
164.19  learning center established under section 124C.45; or 
164.20     (2) an eligible pupil under subdivision 2, to enroll in an 
164.21  adult basic education program approved under section 124.26. 
164.22     Subd. 6.  [DISSEMINATION OF INFORMATION.] A district must 
164.23  disseminate information, developed by the department, about the 
164.24  graduation incentives program to residents in the district who 
164.25  are under the age of 21. 
164.26     Subd. 7.  [DESEGREGATION PLANS.] Notwithstanding any 
164.27  provision to the contrary, students may not enroll in a 
164.28  nonresident district under this section if their enrollment in 
164.29  another district would result in a violation of a district's 
164.30  desegregation plan, as mandated and approved by the state board 
164.31  of education. 
164.32     Subd. 8.  [AID ADJUSTMENTS.] General education aid, capital 
164.33  expenditure aid, and transportation aid attributable to a pupil 
164.34  covered by programs under this section must be paid according to 
164.35  sections 124A.036, subdivision 5, 124.245, subdivision 6, and 
164.36  124.225, subdivision 8l, respectively. 
165.1      Subd. 9.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
165.2   attending an eligible program full time under subdivision 3, 
165.3   paragraph (d), the department must pay 90 percent of the basic 
165.4   revenue of the district to the eligible program and ten percent 
165.5   of the basic revenue to the resident district within 30 days 
165.6   after the eligible program verifies enrollment using the form 
165.7   provided by the department.  For a pupil attending an eligible 
165.8   program part time, basic revenue shall be reduced 
165.9   proportionately, according to the amount of time the pupil 
165.10  attends the program, and the payments to the eligible program 
165.11  and the resident district shall be reduced accordingly.  A pupil 
165.12  for whom payment is made according to this section may not be 
165.13  counted by any district for any purpose other than computation 
165.14  of basic revenue, according to section 124A.22, subdivision 2.  
165.15  If payment is made for a pupil under this subdivision, a school 
165.16  district shall not reimburse a program under section 126.23 for 
165.17  the same pupil. 
165.18     (b) The department must pay up to 100 percent of the basic 
165.19  revenue to the eligible program if there is an agreement to that 
165.20  effect between the district and the eligible program. 
165.21     Sec. 55.  [120A.55] [AID FOR CONTRACTED ALTERNATIVE 
165.22  PROGRAMS.] 
165.23     Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
165.24  program, eligible under section 126.22, subdivision 3, paragraph 
165.25  (d), or subdivision 3a, operated by a private organization that 
165.26  has contracted with a school district to provide educational 
165.27  services for eligible pupils under section 126.22, subdivision 
165.28  2, the district contracting with the private organization must 
165.29  reimburse the provider an amount equal to at least 90 percent of 
165.30  the basic revenue of the district for each pupil attending the 
165.31  program full time.  For a pupil attending the program part time, 
165.32  basic revenue paid to the program must be reduced 
165.33  proportionately, according to the amount of time the pupil 
165.34  attends the program, and basic revenue paid to the district 
165.35  shall be reduced accordingly.  Pupils for whom a district 
165.36  provides reimbursement may not be counted by the district for 
166.1   any purpose other than computation of basic revenue, according 
166.2   to section 124A.22, subdivision 2.  If payment is made to a 
166.3   district or program for a pupil under this section, the 
166.4   department must not make a payment for the same pupil under 
166.5   section 126.22, subdivision 8. 
166.6      Subd. 2.  [RESERVE ACCOUNT.] During the term of the 
166.7   contract to provide educational services under subdivision 1, 
166.8   all state aid under subdivision 1 accrues to the account 
166.9   assigned to the alternative program site and is reserved for 
166.10  that site. 
166.11     Sec. 56.  [120A.56] [EDUCATION PROGRAM FOR PREGNANT MINORS 
166.12  AND MINOR PARENTS.] 
166.13     Upon request, a district must make available to a pregnant 
166.14  minor or a minor custodial parent an educational program to 
166.15  enable the minor to earn a high school diploma.  The department 
166.16  must develop program designs and provide districts with 
166.17  technical assistance.  A district's educational program must use 
166.18  appropriate community services and must recognize each pupil's 
166.19  individual needs and parental responsibilities.  The district 
166.20  must designate at least one person to review quarterly each 
166.21  pupil's progress in the program. 
166.22     If a pupil receives social services according to section 
166.23  257.33 or employment and training services according to section 
166.24  256.736, the district must develop the pupil's educational 
166.25  program in consultation with the providers of the services and 
166.26  shall provide a liaison when necessary.  The pupil may request 
166.27  that an adult, selected by the pupil, assist in developing the 
166.28  educational program. 
166.29     Sec. 57.  [120A.57] [SUMMER CULTURAL EXCHANGE GRANT 
166.30  PROGRAM.] 
166.31     Subdivision 1.  [CULTURAL EXCHANGE PROGRAM GOALS.] A 
166.32  cultural exchange grant program is established to develop and 
166.33  create opportunities for children and staff of different ethnic, 
166.34  racial, and other cultural backgrounds to experience educational 
166.35  and social exchange.  Student and staff exchanges under this 
166.36  section may only take place between a district with a 
167.1   desegregation plan approved by the state board of education and 
167.2   a district without a desegregation plan.  Participating school 
167.3   districts shall offer summer programs for credit with the goals 
167.4   set forth in paragraphs (a) to (d). 
167.5      (a) The program must develop curriculum reflective of 
167.6   particular ethnic, racial, and other cultural aspects of various 
167.7   demographic groups in the state. 
167.8      (b) The program must develop immersion programs that are 
167.9   coordinated with the programs offered in paragraph (a). 
167.10     (c) The program must create opportunities for students from 
167.11  across the state to enroll in summer programs in districts other 
167.12  than the one of residence, or in other schools within their 
167.13  district of residence. 
167.14     (d) The program must create opportunities for staff 
167.15  exchanges on a cultural basis. 
167.16     Subd. 2.  [CULTURAL EXCHANGE GRANTS.] A district together 
167.17  with a group of districts, a cooperative governmental unit, the 
167.18  center for arts and education, or a post-secondary institution 
167.19  may apply for cultural exchange grants.  The commissioner shall 
167.20  determine grant recipients and may adopt application 
167.21  guidelines.  The grants must be competitively determined and 
167.22  applicants must demonstrate: 
167.23     (1) the capacity to develop a focused curriculum that 
167.24  reflects the particular ethnic, racial, and other cultural 
167.25  aspects of the community in which the school where the program 
167.26  is offered is located; 
167.27     (2) the capacity to develop immersion programs coordinated 
167.28  with the curriculum developed in clause (1); 
167.29     (3) the capacity to coordinate a cultural exchange program 
167.30  with other curriculum programs to assure continuity in a pupil's 
167.31  education; 
167.32     (4) the capacity to maximize diversity of ethnic, racial, 
167.33  and other cultural backgrounds of participants; 
167.34     (5) that the application is jointly developed by 
167.35  participants; and 
167.36     (6) that the outcomes of the exchange program are clearly 
168.1   articulated. 
168.2      Subd. 3.  [GRANT USE.] The grants may be used for staff 
168.3   time including salary and benefit expenses and costs for 
168.4   substitute staff, travel expenses, curriculum materials, and any 
168.5   other expense needed to meet the goals of the program.  Grant 
168.6   proceeds also may be used for transportation, board, and lodging 
168.7   expenses for students.  
168.8      Sec. 58.  [120A.58] [METROPOLITAN MAGNET SCHOOL GRANTS.] 
168.9      Subdivision 1.  [POLICY AND PURPOSE.] A metropolitan magnet 
168.10  school grant program is established for the purpose of promoting 
168.11  integrated education for students in prekindergarten through 
168.12  grade 12, increasing mutual understanding among all students, 
168.13  and addressing the inability of local school districts to 
168.14  provide required construction funds through local property 
168.15  taxes.  The program seeks to encourage districts located in 
168.16  whole or in part within the seven-county metropolitan area to 
168.17  make available to school age children residing in the 
168.18  metropolitan area those educational programs, services, and 
168.19  facilities that are essential to meeting all children's needs 
168.20  and abilities.  The program anticipates using the credit of the 
168.21  state, to a limited degree, to provide grants to metropolitan 
168.22  area school districts to improve the educational opportunities 
168.23  and academic achievement of disadvantaged children and the 
168.24  facilities that are available to those children.  
168.25     Subd. 2.  [APPROVAL AUTHORITY; APPLICATION FORMS.] To the 
168.26  extent money is available, the commissioner may approve projects 
168.27  from applications submitted under this section.  The grant money 
168.28  must be used only to design, acquire, construct, remodel, 
168.29  improve, furnish, or equip the building or site of a magnet 
168.30  school facility according to contracts entered into within 15 
168.31  months after the date on which a grant is awarded. 
168.32     Subd. 3.  [GRANT APPLICATION PROCESS.] (a) Any group of 
168.33  school districts that meets the criteria required under 
168.34  paragraph (b)(i) may apply for a magnet school grant in an 
168.35  amount not to exceed $10,000,000 for the approved costs of a 
168.36  magnet school facility. 
169.1      (b)(i) Any group of districts that submits an application 
169.2   for a grant shall submit a proposal to the commissioner for 
169.3   review and comment under section 121.15, and the commissioner 
169.4   shall prepare a review and comment on the proposed magnet school 
169.5   facility, regardless of the amount of the capital expenditure 
169.6   required to design, acquire, construct, remodel, improve, 
169.7   furnish, or equip the facility.  The commissioner must not 
169.8   approve an application for a magnet school grant for any 
169.9   facility unless the facility receives a favorable review and 
169.10  comment under section 121.15 and the participating districts: 
169.11     (1) establish a joint powers board under section 471.59 to 
169.12  represent all participating districts and govern the magnet 
169.13  school facility; 
169.14     (2) design the planned magnet school facility to meet the 
169.15  applicable requirements contained in Minnesota Rules, chapter 
169.16  3535; 
169.17     (3) submit a statement of need, including reasons why the 
169.18  magnet school will facilitate integration and improve learning; 
169.19     (4) prepare an educational plan that includes input from 
169.20  both community and professional staff; and 
169.21     (5) develop an education program that will improve learning 
169.22  opportunities for students attending the magnet school. 
169.23     (ii) The districts may develop a plan that permits social 
169.24  service, health, and other programs serving students and 
169.25  community residents to be located within the magnet school 
169.26  facility.  The commissioner shall consider this plan when 
169.27  preparing a review and comment on the proposed facility.  
169.28     (c) When two or more districts enter into an agreement 
169.29  establishing a joint powers board to govern the magnet school 
169.30  facility, all member districts shall have the same powers.  
169.31     (d) A joint powers board of participating school districts 
169.32  established under paragraphs (b) and (c) that intends to apply 
169.33  for a grant must adopt a resolution stating the costs of the 
169.34  proposed project, the purpose for which the debt is to be 
169.35  incurred, and an estimate of the dates when the contracts for 
169.36  the proposed project will be completed.  A copy of the 
170.1   resolution must accompany any application for a state grant 
170.2   under this section. 
170.3      (e)(i) The commissioner shall examine and consider all 
170.4   grant applications.  If the commissioner finds that any joint 
170.5   powers district is not a qualified grant applicant, the 
170.6   commissioner shall promptly notify that joint powers board.  The 
170.7   commissioner shall make awards to no more than two qualified 
170.8   applicants whose applications have been on file with the 
170.9   commissioner more than 30 days.  
170.10     (ii) A grant award is subject to verification by the joint 
170.11  powers board under paragraph (f).  A grant award must not be 
170.12  made until the participating districts determine the site of the 
170.13  magnet school facility.  If the total amount of the approved 
170.14  applications exceeds the amount of grant funding that is or can 
170.15  be made available, the commissioner shall allot the available 
170.16  amount equally between the approved applicant districts.  The 
170.17  commissioner shall promptly certify to each qualified joint 
170.18  powers board the amount, if any, of the grant awarded to it. 
170.19     (f) Each grant must be evidenced by a contract between the 
170.20  joint powers board and the state acting through the 
170.21  commissioner.  The contract obligates the state to pay to the 
170.22  joint powers board an amount computed according to paragraph 
170.23  (e)(ii) and a schedule, and terms and conditions acceptable to 
170.24  the commissioner of finance. 
170.25     Sec. 59.  [120A.59] [CITATION.] 
170.26     Sections 120A.59 to 120A.61 may be cited as the 
170.27  "Desegregation Capital Improvement Grant Act." 
170.28     Sec. 60.  [120A.60] [APPROVAL AUTHORITY; APPLICATION 
170.29  FORMS.] 
170.30     Subdivision 1.  [APPROVAL BY COMMISSIONER.] The 
170.31  commissioner may approve or disapprove applications under 
170.32  section 120A.61.  The grant money must be used only to remodel 
170.33  or improve a building or site under contracts to be entered into 
170.34  within 15 months after the date each grant is awarded. 
170.35     Subd. 2.  [APPLICATION FORMS.] The commissioner shall 
170.36  prepare application forms and establish application dates.  
171.1      Subd. 3.  [CRITERIA.] A district applying for a grant under 
171.2   this section must match with local district funds to be used for 
171.3   construction, enlarging, or modifying school buildings.  The 
171.4   commissioner shall determine that the costs are directly related 
171.5   to reducing or eliminating racial imbalance and are part of an 
171.6   approved desegregation plan.  The district must also certify 
171.7   that the district has sought all available federal funds before 
171.8   submitting a grant application. 
171.9      Sec. 61.  [120A.61] [GRANT APPLICATION PROCESS.] 
171.10     Subdivision 1.  [QUALIFICATION.] A district that meets the 
171.11  criteria required under subdivision 2 may apply for a grant in 
171.12  an amount up to 50 percent of the approved costs of remodeling 
171.13  or improvement. 
171.14     Subd. 2.  [REVIEW BY COMMISSIONER.] A district that submits 
171.15  an application for a grant must submit a proposal to the 
171.16  commissioner for review and comment under section 121.15, and 
171.17  the commissioner shall prepare a review and comment on the 
171.18  proposed facility, regardless of the amount of the capital 
171.19  expenditure required to remodel or improve the building or 
171.20  site.  The commissioner shall not approve an application for a 
171.21  grant for a building or site unless the building or site 
171.22  receives a favorable review and comment under section 121.15 and 
171.23  is recommended by the commissioner as part of the district's 
171.24  approved desegregation plan. 
171.25     Subd. 3.  [AWARD OF GRANTS.] The commissioner shall examine 
171.26  and consider all applications for grants, and if a district is 
171.27  found not qualified, the commissioner shall promptly notify the 
171.28  district board.  If the total amount of the applications exceeds 
171.29  the amount that is or can be made available, the commissioner 
171.30  shall prorate the available amount among the qualified applicant 
171.31  districts, according to the commissioner's judgment and 
171.32  discretion based upon their respective needs.  The commissioner 
171.33  shall promptly certify to each district the amount, if any, of 
171.34  the grant awarded to it. 
171.35     Subd. 4.  [MATCHING REVENUE.] Upon being awarded a grant 
171.36  under subdivision 3, the board must determine the need to bond 
172.1   for additional revenue.  If the board determines that there is 
172.2   no need to bond, it must certify to the commissioner that other 
172.3   funds are available for the purpose.  If a bond issue is 
172.4   required, the board must submit, within 90 days, the question of 
172.5   authorizing the borrowing of funds for remodeling or 
172.6   improvements to the voters of the district at a special 
172.7   election, that may be held in conjunction with the annual 
172.8   election of the school board members.  If a majority of those 
172.9   voting on the question do not vote in the affirmative, and the 
172.10  district does not have other funds available, the grant must be 
172.11  canceled. 
172.12     Subd. 5.  [PROJECT BUDGET.] A district that receives a 
172.13  grant must provide the commissioner with the project budget and 
172.14  any other information the commissioner requests. 
172.15     Sec. 62.  [120A.62] [ISSUANCE AND SALE OF BONDS.] 
172.16     To provide money for grants under the desegregation capital 
172.17  improvement grant act, the commissioner of finance, upon the 
172.18  request of the commissioner of children, families, and learning, 
172.19  shall issue and sell bonds of the state up to the amount of 
172.20  $2,000,000 in the manner, upon the terms, and with the effect 
172.21  prescribed by sections 16A.631 to 16A.675 and the Minnesota 
172.22  Constitution, article XI, sections 4 to 7. 
172.23                             ARTICLE 3
172.24                            CHAPTER 120B
172.25                        COMMUNITY EDUCATION
172.26     Section 1.  [120B.01] [DEFINITIONS.] 
172.27     For the purposes of this chapter, the words defined in 
172.28  section 120.02 have the same meaning. 
172.29     Sec. 2.  [120B.02] [HEARING IMPAIRED EDUCATIONAL SUPPORT 
172.30  SERVICES.] 
172.31     Subdivision 1.  [RESPONSIBILITY OF COMMISSIONER.] The 
172.32  commissioner shall coordinate and may pay for support services 
172.33  for hearing impaired persons to assure access to educational 
172.34  opportunities.  Services may be provided to adult students who 
172.35  are hearing impaired and (a) have been denied access to 
172.36  educational opportunities because of the lack of support 
173.1   services or (b) are presently enrolled or (c) are contemplating 
173.2   enrollment in an educational program and would benefit from 
173.3   support services.  The commissioner shall also be responsible 
173.4   for conducting in-service training for public and private 
173.5   agencies regarding the needs of hearing impaired persons in the 
173.6   adult education system.  
173.7      Subd. 2.  [SUPPORT SERVICES.] The state board may pay 
173.8   school districts or public or private community agencies for the 
173.9   following support services:  
173.10     (a) Interpreter services to provide translation for an 
173.11  individual or a group of students; or 
173.12     (b) Notetaker services to convert spoken language to 
173.13  written language when the student must maintain visual contact 
173.14  with other persons such as an interpreter or instructor.  
173.15     Subd. 3.  [PROGRAMS INCLUDED.] Support services may be 
173.16  provided for:  
173.17     (a) Local school district adult education programs; 
173.18     (b) Adult technical college programs; and 
173.19     (c) Avocational education programs sponsored by public or 
173.20  private community agencies.  
173.21     Sec. 3.  [120B.03] [HEALTH STANDARDS; IMMUNIZATIONS; SCHOOL 
173.22  CHILDREN.] 
173.23     Subdivision 1.  [DEFINITIONS.] As used in this section the 
173.24  following terms have the meanings given them. 
173.25     (a) "Elementary or secondary school" includes any public 
173.26  school as defined in section 120.05, or nonpublic school, 
173.27  church, or religious organization, or home school in which a 
173.28  child is provided instruction in compliance with sections 
173.29  120.101 and 120.102. 
173.30     (b) "Person enrolled in any elementary or secondary school" 
173.31  means a person born after 1956 and enrolled in grades 
173.32  kindergarten through 12, and a child with a disability receiving 
173.33  special instruction and services as required in section 120.17, 
173.34  excluding a child being provided services according to section 
173.35  120.17, subdivision 2, clause (c) or (g). 
173.36     (c) "Child care facility" includes those child care 
174.1   programs subject to licensure under chapter 245A, and Minnesota 
174.2   Rules, chapters 9502 and 9503. 
174.3      (d) "Family child care" means child care for no more than 
174.4   ten children at one time of which no more than six are under 
174.5   school age.  The licensed capacity must include all children of 
174.6   any caregiver when the children are present in the residence. 
174.7      (e) "Group family child care" means child care for no more 
174.8   than 14 children at any one time.  The total number of children 
174.9   includes all children of any caregiver when the children are 
174.10  present in the residence. 
174.11     Subd. 2.  [IMMUNIZATION STATEMENT.] Except as provided in 
174.12  subdivisions 3 and 4, no person over two months old may be 
174.13  allowed to enroll or remain enrolled in any elementary or 
174.14  secondary school or child care facility in this state until the 
174.15  person has submitted to the administrator or other person having 
174.16  general control and supervision of the school or child care 
174.17  facility, one of the following statements: 
174.18     (1) a statement from a physician or a public clinic which 
174.19  provides immunizations stating that the person has received 
174.20  immunization, consistent with medically acceptable standards and 
174.21  with the provisions of subdivision 10, against measles after 
174.22  having attained the age of 12 months, rubella, diphtheria, 
174.23  tetanus, pertussis, polio, mumps, and haemophilus influenza type 
174.24  b; or 
174.25     (2) a statement from a physician or a public clinic which 
174.26  provides immunizations stating that the person has received 
174.27  immunizations, consistent with medically acceptable standards 
174.28  and with the provisions of subdivision 10, against measles after 
174.29  having attained the age of 12 months, rubella, mumps, and 
174.30  haemophilus influenza type b and that the person has commenced a 
174.31  schedule of immunizations for diphtheria, tetanus, pertussis, 
174.32  and polio and which indicates the month and year of each 
174.33  immunization received.  
174.34     Subd. 3.  [SCHEDULE OF IMMUNIZATIONS.] No person who has 
174.35  commenced a treatment schedule of immunization pursuant to 
174.36  subdivision 2, clause (2), may remain enrolled in any child care 
175.1   facility, elementary, or secondary school in this state after 18 
175.2   months of enrollment unless there is submitted to the 
175.3   administrator, or other person having general control and 
175.4   supervision of the school or child care facility, a statement 
175.5   from a physician or a public clinic which provides immunizations 
175.6   that the person has completed the primary schedule of 
175.7   immunizations for diphtheria, tetanus, pertussis, and polio.  
175.8   The statement must include the month and year of each additional 
175.9   immunization received.  For a child less than seven years of 
175.10  age, a primary schedule of immunizations shall consist of four 
175.11  doses of vaccine for diphtheria, tetanus, and pertussis and 
175.12  three doses of vaccine for poliomyelitis.  For a child seven 
175.13  years of age or older, a primary schedule of immunizations shall 
175.14  consist of three doses of vaccine for diphtheria, tetanus, and 
175.15  polio. 
175.16     Subd. 4.  [IMMUNIZATION EXCEPTIONS.] (a) If a person is at 
175.17  least seven years old and has not been immunized against 
175.18  pertussis, the person must not be required to be immunized 
175.19  against pertussis. 
175.20     (b) If a person is at least 18 years old and has not 
175.21  completed a series of immunizations against poliomyelitis, the 
175.22  person must not be required to be immunized against 
175.23  poliomyelitis.  
175.24     (c) If a statement, signed by a physician, is submitted to 
175.25  the administrator or other person having general control and 
175.26  supervision of the school or child care facility stating that an 
175.27  immunization is contraindicated for medical reasons or that 
175.28  laboratory confirmation of the presence of adequate immunity 
175.29  exists, the immunization specified in the statement need not be 
175.30  required.  
175.31     (d) If a notarized statement signed by the minor child's 
175.32  parent or guardian or by the emancipated person is submitted to 
175.33  the administrator or other person having general control and 
175.34  supervision of the school or child care facility stating that 
175.35  the person has not been immunized as prescribed in subdivision 1 
175.36  because of the conscientiously held beliefs of the parent or 
176.1   guardian of the minor child or of the emancipated person, the 
176.2   immunizations specified in the statement shall not be required.  
176.3   This statement must also be forwarded to the commissioner of the 
176.4   department of health.  
176.5      (e) If the person is under 15 months, the person is not 
176.6   required to be immunized against measles, rubella, or mumps. 
176.7      (f) If a person is at least five years old and has not been 
176.8   immunized against haemophilus influenza type b, the person is 
176.9   not required to be immunized against haemophilus influenza type 
176.10  b. 
176.11     Subd. 5.  [SUBSTITUTE IMMUNIZATION STATEMENT.] A person who 
176.12  is enrolling or enrolled in an elementary or secondary school or 
176.13  child care facility may substitute a statement from the 
176.14  emancipated person or a parent or guardian if the person is a 
176.15  minor child in lieu of the statement from a physician or public 
176.16  clinic which provides immunizations.  If the statement is from a 
176.17  parent or guardian or emancipated person, the statement must 
176.18  indicate the month and year of each immunization given.  In 
176.19  order for the statement to be acceptable for a person who is 
176.20  enrolling in an elementary school and who is six years of age or 
176.21  younger, it must indicate that the following was given:  no less 
176.22  than one dose of vaccine each for measles, mumps, and rubella 
176.23  given separately or in combination, and no less than four doses 
176.24  of vaccine for poliomyelitis, unless the third dose was given 
176.25  after the fourth birthday, then three doses are minimum, and no 
176.26  less than five doses of vaccine for diphtheria, tetanus, and 
176.27  pertussis, unless the fourth dose was given after the fourth 
176.28  birthday, then four are minimum.  In order for the statement to 
176.29  be acceptable for a person who is enrolling in an elementary or 
176.30  secondary school and is age seven through age 19, the statement 
176.31  must indicate that the person has received no less than one dose 
176.32  of vaccine each for measles, mumps, and rubella given separately 
176.33  or in combination and consistent with subdivision 10, and no 
176.34  less than three doses of vaccine for poliomyelitis, diphtheria, 
176.35  and tetanus.  
176.36     In order for the statement to be acceptable for a person 
177.1   who is enrolling in a secondary school, and who was born after 
177.2   1956 and is 20 years of age or older, the statement must 
177.3   indicate that the person has received no less than one dose of 
177.4   vaccine each for measles, mumps, and rubella given separately or 
177.5   in combination, and no less than one dose of vaccine for 
177.6   diphtheria and tetanus within the preceding ten years.  In order 
177.7   for the statement to be acceptable for a person who is enrolling 
177.8   in a child care facility and who is at least 15 months old but 
177.9   who has not reached five years of age, it must indicate that the 
177.10  following were given:  no less than one dose of vaccine each for 
177.11  measles, mumps, and rubella given separately or in combination; 
177.12  no less than one dose of vaccine for haemophilus influenza type 
177.13  b; no less than four doses of vaccine for diphtheria, tetanus, 
177.14  and pertussis; and no less than three doses of vaccine for 
177.15  poliomyelitis.  In order for the statement to be acceptable for 
177.16  a person who is enrolling in a child care facility and who is 
177.17  five or six years of age, it must indicate that the following 
177.18  was given:  no less than one dose of vaccine each for measles, 
177.19  mumps, and rubella given separately or in combination, no less 
177.20  than four doses of vaccine for diphtheria, tetanus, and 
177.21  pertussis, and no less than three doses of vaccine for 
177.22  poliomyelitis.  In order for the statement to be acceptable for 
177.23  a person who is enrolling in a child care facility and who is 
177.24  seven years of age or older, the statement must indicate that 
177.25  the person has received no less than one dose of vaccine each 
177.26  for measles, mumps, and rubella given separately or in 
177.27  combination and consistent with subdivision 10, and no less than 
177.28  three doses of vaccine for poliomyelitis, diphtheria, and 
177.29  tetanus.  The commissioner of health, on finding that any of the 
177.30  above requirements are not necessary to protect the public's 
177.31  health, may suspend for one year that requirement.  
177.32     Subd. 6.  [TRANSFERRING SCHOOLS.] If a person transfers 
177.33  from one elementary or secondary school to another, the person 
177.34  shall be allowed 30 days to submit one or more of the statements 
177.35  as specified in subdivision 1 or 3, during which time the person 
177.36  may enroll in and attend the school.  If a person enrolls in a 
178.1   child care facility in which at least 75 percent of children in 
178.2   the facility participate on a one-time only or occasional basis 
178.3   up to a maximum of 45 hours per child, per month, the person 
178.4   shall be exempt from all requirements of this section for up to 
178.5   five consecutive days, starting from the first day of attendance.
178.6      Subd. 7.  [SUSPENSION OF REQUIREMENTS.] The commissioner of 
178.7   health, on finding that an immunization required pursuant to 
178.8   this section is not necessary to protect the public's health, 
178.9   may suspend for one year the requirement that children receive 
178.10  that immunization. 
178.11     Subd. 8.  [ACCESS TO RECORDS; FILE TRANSFER.] Each school 
178.12  or child care facility must maintain on file immunization 
178.13  records for all persons in attendance that contain the 
178.14  information required by subdivisions 1, 2, and 3.  The 
178.15  department of health and the board of health, as defined in 
178.16  section 145A.02, subdivision 2, in whose jurisdiction the school 
178.17  or child care facility is located, must have access to the files 
178.18  maintained pursuant to this subdivision.  When a person 
178.19  transfers to another elementary or secondary school or child 
178.20  care facility, the administrator or other person having general 
178.21  control and supervision of the school or child care facility 
178.22  shall assist the person's parent or guardian in the transfer of 
178.23  the immunization file to the person's new school or child care 
178.24  facility within 30 days of the transfer.  Upon the request of a 
178.25  public or private post-secondary educational institution, as 
178.26  defined in section 135A.14, the administrator or other person 
178.27  having general control or supervision of a school shall assist 
178.28  in the transfer of a student's immunization file to the 
178.29  post-secondary institution. 
178.30     Subd. 9.  [REPORT.] The administrator or other person 
178.31  having general control and supervision of the elementary or 
178.32  secondary school shall file a report with the commissioner on 
178.33  all persons enrolled in the school.  The superintendent of each 
178.34  district shall file a report with the commissioner for all 
178.35  persons within the district receiving instruction in a home 
178.36  school in compliance with sections 120.101 and 120.102.  The 
179.1   parent of persons receiving instruction in a home school shall 
179.2   submit the statements as required by subdivisions 1, 2, 3, and 4 
179.3   to the superintendent of the district in which the person 
179.4   resides by October 1 of each school year.  The school report 
179.5   must be prepared on forms developed jointly by the commissioner 
179.6   of health and the commissioner of children, families, and 
179.7   learning and be distributed to the local districts by the 
179.8   commissioner of health.  The school report must state the number 
179.9   of persons attending the school, the number of persons who have 
179.10  not been immunized according to subdivision 1 or 2, and the 
179.11  number of persons who received an exemption under subdivision 3, 
179.12  clause (c) or (d).  The school report must be filed with the 
179.13  commissioner of children, families, and learning within 60 days 
179.14  of the commencement of each new school term.  Upon request, a 
179.15  district must be given a 60-day extension for filing the school 
179.16  report.  The commissioner of children, families, and learning 
179.17  shall forward the report, or a copy thereof, to the commissioner 
179.18  of health who shall provide summary reports to boards of health 
179.19  as defined in section 145A.02, subdivision 2.  The administrator 
179.20  or other person having general control and supervision of the 
179.21  child care facility shall file a report with the commissioner of 
179.22  human services on all persons enrolled in the child care 
179.23  facility.  The child care facility report must be prepared on 
179.24  forms developed jointly by the commissioner of health and the 
179.25  commissioner of human services and be distributed to child care 
179.26  facilities by the commissioner of health.  The child care 
179.27  facility report must state the number of persons enrolled in the 
179.28  facility, the number of persons with no immunizations, the 
179.29  number of persons who received an exemption under subdivision 3, 
179.30  clause (c) or (d), and the number of persons with partial or 
179.31  full immunization histories.  The child care facility report 
179.32  must be filed with the commissioner of human services by 
179.33  November 1 of each year.  The commissioner of human services 
179.34  shall forward the report, or a copy thereof, to the commissioner 
179.35  of health who shall provide summary reports to boards of health 
179.36  as defined in section 145A.02, subdivision 2.  The report 
180.1   required by this subdivision is not required of a family child 
180.2   care or group family child care facility, for prekindergarten 
180.3   children enrolled in any elementary or secondary school provided 
180.4   services according to section 120.17, subdivision 2, nor for 
180.5   child care facilities in which at least 75 percent of children 
180.6   in the facility participate on a one-time only or occasional 
180.7   basis to a maximum of 45 hours per child, per month.  
180.8      Subd. 10.  [STATEMENTS FOR GRADES 7 THROUGH 12.] A 
180.9   statement required to be submitted under subdivisions 1, 2, and 
180.10  4 to document evidence of immunization must include month, day, 
180.11  and year for immunizations administered after January 1, 1990.  
180.12     (a) For persons enrolled in grades 7 and 12 during the 
180.13  1996-1997 school term, the statement must indicate that the 
180.14  person has received a dose of tetanus and diphtheria toxoid no 
180.15  earlier than 11 years of age.  
180.16     (b) For persons enrolled in grades 7, 8, and 12 during the 
180.17  1997-1998 school term, the statement must indicate that the 
180.18  person has received a dose of tetanus and diphtheria toxoid no 
180.19  earlier than 11 years of age.  
180.20     (c) For persons enrolled in grades 7, 8, 9, and 12 during 
180.21  the 1998-1999 school term, the statement must indicate that the 
180.22  person has received a dose of tetanus and diphtheria toxoid no 
180.23  earlier than 11 years of age.  
180.24     (d) For persons enrolled in grades 7, 8, 9, 10, and 12 
180.25  during the 1999-2000 school term, the statement must indicate 
180.26  that the person has received a dose of tetanus and diphtheria 
180.27  toxoid no earlier than 11 years of age.  
180.28     (e) For persons enrolled in grades 7 through 12 during the 
180.29  2000-2001 school term and for each year thereafter, the 
180.30  statement must indicate that the person has received a dose of 
180.31  tetanus and diphtheria toxoid no earlier than 11 years of age. 
180.32     (f) For persons enrolled in grades 7 through 12 during the 
180.33  1996-1997 school year and for each year thereafter, the 
180.34  statement must indicate that the person has received at least 
180.35  two doses of vaccine against measles, mumps, and rubella, given 
180.36  alone or separately and given not less than one month apart. 
181.1      Subd. 11.  [COMMISSIONER OF HUMAN SERVICES; CONTINUED 
181.2   RESPONSIBILITIES.] Nothing in this section relieves the 
181.3   commissioner of human services of the responsibility, under 
181.4   chapter 245A, to inspect and assure that statements required by 
181.5   this section are on file at child care programs subject to 
181.6   licensure. 
181.7      Sec. 4.  [120B.04] [EARLY CHILDHOOD HEALTH AND DEVELOPMENT 
181.8   SCREENING; PURPOSE.] 
181.9      The legislature finds that early detection of children's 
181.10  health and developmental problems can reduce their later need 
181.11  for costly care, minimize their physical and educational 
181.12  handicaps, and aid in their rehabilitation.  The purpose of 
181.13  sections 123.701 to 123.7045 is to assist parents and 
181.14  communities in improving the health of Minnesota children and in 
181.15  planning educational and health programs. 
181.16     Sec. 5.  [120B.05] [SCHOOL BOARD RESPONSIBILITIES.] 
181.17     Subdivision 1.  [EARLY CHILDHOOD DEVELOPMENTAL 
181.18  SCREENING.] Every school board must provide for a mandatory 
181.19  program of early childhood developmental screening for children 
181.20  once before school entrance, targeting children who are between 
181.21  3-1/2 and four years old.  This screening program must be 
181.22  established either by one board, by two or more boards acting in 
181.23  cooperation, by service cooperatives, by early childhood family 
181.24  education programs, or by other existing programs.  This 
181.25  screening examination is a mandatory requirement for a student 
181.26  to continue attending kindergarten or first grade in a public 
181.27  school.  A child need not submit to developmental screening 
181.28  provided by a board if the child's health records indicate to 
181.29  the board that the child has received comparable developmental 
181.30  screening from a public or private health care organization or 
181.31  individual health care provider.  Districts are encouraged to 
181.32  reduce the costs of preschool developmental screening programs 
181.33  by utilizing volunteers in implementing the program.  
181.34     Subd. 2.  [DEVELOPMENTAL SCREENING RECORD.] A child must 
181.35  not be enrolled in kindergarten in a public school unless the 
181.36  parent or guardian of the child submits to the school principal 
182.1   or other person having general control and supervision of the 
182.2   school a record indicating the months and year the child 
182.3   received developmental screening and the results of the 
182.4   screening not later than 30 days after the first day of 
182.5   attendance.  If a child is transferred from one kindergarten to 
182.6   another, the parent or guardian of the child must be allowed 30 
182.7   days to submit the child's record, during which time the child 
182.8   may attend school. 
182.9      Subd. 3.  [SCREENING PROGRAM.] (a) A screening program must 
182.10  include at least the following components:  developmental 
182.11  assessments, hearing and vision screening or referral, 
182.12  immunization review and referral, the child's height and weight, 
182.13  identification of risk factors that may influence learning, an 
182.14  interview with the parent about the child, and referral for 
182.15  assessment, diagnosis, and treatment when potential needs are 
182.16  identified.  The district and the person performing or 
182.17  supervising the screening must provide a parent or guardian with 
182.18  clear written notice that the parent or guardian may decline to 
182.19  answer questions or provide information about family 
182.20  circumstances that might affect development and identification 
182.21  of risk factors that may influence learning.  The notice must 
182.22  clearly state that declining to answer questions or provide 
182.23  information does not prevent the child from being enrolled in 
182.24  kindergarten or first grade if all other screening components 
182.25  are met.  If a parent or guardian is not able to read and 
182.26  comprehend the written notice, the district and the person 
182.27  performing or supervising the screening must convey the 
182.28  information in another manner.  The notice must also inform the 
182.29  parent or guardian that a child need not submit to the district 
182.30  screening program if the child's health records indicate to the 
182.31  school that the child has received comparable developmental 
182.32  screening performed within the preceding 365 days by a public or 
182.33  private health care organization or individual health care 
182.34  provider.  The notice must be given to a parent or guardian at 
182.35  the time the district initially provides information to the 
182.36  parent or guardian about screening and must be given again at 
183.1   the screening location.  
183.2      (b) All screening components shall be consistent with the 
183.3   standards of the state commissioner of health for early 
183.4   developmental screening programs.  A developmental screening 
183.5   program must not provide laboratory tests or a physical 
183.6   examination to any child.  The district must request from the 
183.7   public or private health care organization or the individual 
183.8   health care provider the results of any laboratory test or 
183.9   physical examination within the 12 months preceding a child's 
183.10  scheduled screening.  
183.11     (c) If a child is without health coverage, the school 
183.12  district must refer the child to an appropriate health care 
183.13  provider.  
183.14     (d) A board may offer additional components such as 
183.15  nutritional, physical and dental assessments, review of family 
183.16  circumstances that might affect development, blood pressure, 
183.17  laboratory tests, and health history.  
183.18     (e) If a statement signed by the child's parent or guardian 
183.19  is submitted to the administrator or other person having general 
183.20  control and supervision of the school that the child has not 
183.21  been screened because of conscientiously held beliefs of the 
183.22  parent or guardian, the screening is not required. 
183.23     Subd. 4.  [FOLLOW-UP SCREENING.] If any child's screening 
183.24  indicates a condition which requires diagnosis or treatment, the 
183.25  child's parents shall be notified of the condition and the board 
183.26  shall ensure that an appropriate follow-up and referral process 
183.27  is available. 
183.28     Subd. 5.  [DEVELOPMENTAL SCREENING PROGRAM 
183.29  INFORMATION.] The board must inform each resident family with a 
183.30  child eligible to participate in the developmental screening 
183.31  program about the availability of the program and the state's 
183.32  requirement that a child receive developmental screening not 
183.33  later than 30 days after the first day of attending kindergarten 
183.34  in a public school. 
183.35     Subd. 6.  [DEVELOPMENTAL SCREENING SERVICES.] A board may 
183.36  contract with or purchase service from an approved early 
184.1   developmental screening program in the area.  Developmental 
184.2   screening must be conducted by either an individual who is 
184.3   licensed as, or has training that is similar to a special 
184.4   education teacher, school psychologist, kindergarten teacher, 
184.5   prekindergarten teacher, school nurse, public health nurse, 
184.6   registered nurse, or physician.  The individual may be a 
184.7   volunteer. 
184.8      Subd. 7.  [SCREENING RECORD.] The district must provide the 
184.9   parent or guardian of the child screened with a record 
184.10  indicating the month and year the child received developmental 
184.11  screening and the results of the screening.  The district must 
184.12  keep a duplicate copy of the record of each child screened. 
184.13     Subd. 8.  [VOLUNTEER SCREENING PROGRAMS.] Every board must 
184.14  integrate and utilize volunteer screening programs in 
184.15  implementing sections 123.702 to 123.7045 wherever possible. 
184.16     Subd. 9.  [HEALTH CARE PROVIDER SOCIETIES.] A board may 
184.17  consult with local societies of health care providers. 
184.18     Subd. 10.  [PRIORITY TO VOLUNTEERS.] In selecting personnel 
184.19  to implement the screening program, the district must give 
184.20  priority first to qualified volunteers.  
184.21     Sec. 6.  [120B.06] [DATA USE.] 
184.22     Data on individuals collected in screening programs 
184.23  established pursuant to section 123.702 is private, as defined 
184.24  by section 13.02, subdivision 12.  Individual and summary data 
184.25  shall be reported to the district by the health provider who 
184.26  performs the screening services, for the purposes of developing 
184.27  appropriate educational programs to meet the individual needs of 
184.28  children and designing appropriate health education programs for 
184.29  the district.  No data on an individual shall be disclosed to 
184.30  the district without the consent of that individual's parent or 
184.31  guardian. 
184.32     Sec. 7.  [120B.07] [DEVELOPMENTAL SCREENING AID.] 
184.33     Each school year, the state must pay a district $25 for 
184.34  each child screened according to the requirements of section 
184.35  123.702.  If this amount of aid is insufficient, the district 
184.36  may permanently transfer from the general fund an amount that, 
185.1   when added to the aid, is sufficient. 
185.2      Sec. 8.  [120B.08] [ADMINISTRATION OF DRUGS AND MEDICINE.] 
185.3      Subdivision 1.  [APPLICABILITY.] This section applies only: 
185.4      (1) when the parent of a pupil requests school personnel to 
185.5   administer drugs or medicine to the pupil; or 
185.6      (2) when administration is allowed by the individual 
185.7   education plan of a child with a disability. 
185.8      The request of a parent may be oral or in writing.  An oral 
185.9   request must be reduced to writing within two school days, 
185.10  provided that the district may rely on an oral request until a 
185.11  written request is received. 
185.12     Subd. 2.  [EXCLUSIONS.] In addition, this section does not 
185.13  apply to drugs or medicine: 
185.14     (1) that can be purchased without a prescription; 
185.15     (2) that are used by a pupil who is 18 years old or older; 
185.16     (3) that are used in connection with services for which a 
185.17  minor may give effective consent, including section 144.343, 
185.18  subdivision 1, and any other law; 
185.19     (4) that are used in situations in which, in the judgment 
185.20  of the school personnel who are present or available, the risk 
185.21  to the pupil's life or health is of such a nature that drugs or 
185.22  medicine should be given without delay; 
185.23     (5) that are used off the school grounds; 
185.24     (6) that are used in connection with athletics or extra 
185.25  curricular activities; 
185.26     (7) that are used in connection with activities that occur 
185.27  before or after the regular school day; or 
185.28     (8) that are provided or administered by a public health 
185.29  agency in order to prevent or control an illness or a disease 
185.30  outbreak as provided for in sections 144.05 and 144.12. 
185.31     Subd. 3.  [LABELING.] Drugs or medicine subject to this 
185.32  section must be in a container with a label prepared by a 
185.33  pharmacist according to section 151.212 and applicable rules.  
185.34     Subd. 4.  [ADMINISTRATION.] Drugs and medicine subject to 
185.35  this section must be administered in a manner consistent with 
185.36  instructions on the label.  Drugs and medicine subject to this 
186.1   section must be administered, to the extent possible, according 
186.2   to school board procedures that must be developed in 
186.3   consultation:  
186.4      (1) with a school nurse, in a district that employs a 
186.5   school nurse; 
186.6      (2) with a licensed school nurse, in a district that 
186.7   employs a licensed school nurse; 
186.8      (3) with a public or private health or health-related 
186.9   organization, in a district that contracts with a public or 
186.10  private health or health-related organization, according to 
186.11  section 123.35, subdivision 17; or 
186.12     (4) with the appropriate party, in a district that has an 
186.13  arrangement approved by the state board of education, according 
186.14  to section 123.35, subdivision 17.  
186.15     Subd. 5.  [CHILDREN WITH A DISABILITY.] For drugs or 
186.16  medicine used by children with a disability, administration may 
186.17  be as provided in the individual education plan. 
186.18     Subd. 6.  [HEALTH TREATMENTS.] For the purpose of this 
186.19  section, special health treatments and health functions, such as 
186.20  catheterization, tracheostomy suctioning, and gastrostomy 
186.21  feedings, do not constitute administration of drugs or medicine. 
186.22     Sec. 9.  [120B.09] [HEALTH-RELATED PROGRAMS.] 
186.23     Subdivision 1.  [AIDS PROGRAM.] The commissioner of 
186.24  children, families, and learning, in consultation with the 
186.25  commissioner of health, shall assist districts in developing and 
186.26  implementing a program to prevent and reduce the risk of 
186.27  acquired immune deficiency syndrome.  Each district must have a 
186.28  program that includes at least: 
186.29     (1) planning materials, guidelines, and other technically 
186.30  accurate and updated information; 
186.31     (2) a comprehensive, technically accurate, and updated 
186.32  curriculum; 
186.33     (3) cooperation and coordination among districts and SCs; 
186.34     (4) a targeting of adolescents, especially those who may be 
186.35  at high risk of contracting AIDS, for prevention efforts; 
186.36     (5) involvement of parents and other community members; 
187.1      (6) in-service training for appropriate district staff and 
187.2   school board members; 
187.3      (7) collaboration with state agencies and organizations 
187.4   having an AIDS prevention or AIDS risk reduction program; 
187.5      (8) collaboration with local community health services, 
187.6   agencies and organizations having an AIDS prevention or AIDS 
187.7   risk reduction program; and 
187.8      (9) participation by state and local student organizations. 
187.9      The department may provide assistance at a neutral site to 
187.10  a nonpublic school participating in a district's program.  
187.11  District programs must not conflict with the health and wellness 
187.12  curriculum developed under Laws 1987, chapter 398, article 5, 
187.13  section 2, subdivision 7. 
187.14     If a district fails to develop and implement a program to 
187.15  prevent and reduce the risk of AIDS, the department must assist 
187.16  the SC in the region serving that district to develop or 
187.17  implement the program. 
187.18     Subd. 2.  [FUNDING SOURCES.] Districts may accept funds for 
187.19  AIDS programs developed and implemented under this section from 
187.20  public and private sources including public health funds and 
187.21  foundations, department professional development funds, federal 
187.22  block grants or other federal or state grants. 
187.23     Sec. 10.  [120B.10] [BOARDS OF INDEPENDENT SCHOOL 
187.24  DISTRICTS.] 
187.25     Subdivision 1. [EVENING SCHOOLS; ADULT AND CONTINUING 
187.26  EDUCATION.] The board may establish and maintain public evening 
187.27  schools and adult and continuing education programs.  The 
187.28  evening schools and adult and continuing education programs 
187.29  maintained by the board must be available to all persons over 16 
187.30  years of age through the 1999-2000 school year and over 18 years 
187.31  of age beginning with the 2000-2001 school year who, from any 
187.32  cause, are unable to attend the full-time elementary or 
187.33  secondary schools of such district. 
187.34     Subd. 2.  [SCHOOL HEALTH SERVICES.] (a) Every school board 
187.35  must provide services to promote the health of its pupils. 
187.36     (b) The board of a district with 1,000 pupils or more in 
188.1   average daily membership in early childhood family education, 
188.2   preschool handicapped, elementary, and secondary programs must 
188.3   comply with the requirements of this paragraph.  It may use one 
188.4   or a combination of the following methods: 
188.5      (1) employ personnel, including at least one full-time 
188.6   equivalent licensed school nurse or continue to employ a 
188.7   registered nurse not yet certified as a public health nurse as 
188.8   defined in section 145A.02, subdivision 18, who is enrolled in a 
188.9   program that would lead to certification within four years of 
188.10  August 1, 1988; 
188.11     (2) contract with a public or private health organization 
188.12  or another public agency for personnel during the regular school 
188.13  year, determined appropriate by the board, who are currently 
188.14  licensed under chapter 148 and who are certified public health 
188.15  nurses; or 
188.16     (3) enter into another arrangement approved by the 
188.17  commissioner.  
188.18     Sec. 11.  [120B.11] [VIOLENCE PREVENTION EDUCATION.] 
188.19     Subdivision 1.  [VIOLENCE PREVENTION CURRICULUM.] (a) The 
188.20  commissioner of children, families, and learning, in 
188.21  consultation with the commissioners of health and human 
188.22  services, state minority councils, battered women's programs, 
188.23  sexual assault centers, representatives of religious 
188.24  communities, and the assistant commissioner of the office of 
188.25  drug policy and violence prevention, shall assist districts on 
188.26  request in developing or implementing a violence prevention 
188.27  program for students in kindergarten to grade 12 that can be 
188.28  integrated into existing curriculum.  The purpose of the program 
188.29  is to help students learn how to resolve conflicts within their 
188.30  families and communities in nonviolent, effective ways.  
188.31     (b) Each district is encouraged to integrate into its 
188.32  existing curriculum a program for violence prevention that 
188.33  includes at least: 
188.34     (1) a comprehensive, accurate, and age appropriate 
188.35  curriculum on violence prevention, nonviolent conflict 
188.36  resolution, and sexual, racial, and cultural harassment that 
189.1   promotes equality, respect, understanding, effective 
189.2   communication, individual responsibility, thoughtful decision 
189.3   making, positive conflict resolution, useful coping skills, 
189.4   critical thinking, listening and watching skills, and personal 
189.5   safety; 
189.6      (2) planning materials, guidelines, and other accurate 
189.7   information on preventing physical and emotional violence, 
189.8   identifying and reducing the incidence of sexual, racial, and 
189.9   cultural harassment, and reducing child abuse and neglect; 
189.10     (3) a special parent education component of early childhood 
189.11  family education programs to prevent child abuse and neglect and 
189.12  to promote positive parenting skills, giving priority to 
189.13  services and outreach programs for at-risk families; 
189.14     (4) involvement of parents and other community members, 
189.15  including the clergy, business representatives, civic leaders, 
189.16  local elected officials, law enforcement officials, and the 
189.17  county attorney; 
189.18     (5) collaboration with local community services, agencies, 
189.19  and organizations that assist in violence intervention or 
189.20  prevention, including family-based services, crisis services, 
189.21  life management skills services, case coordination services, 
189.22  mental health services, and early intervention services; 
189.23     (6) collaboration among districts and SCs; 
189.24     (7) targeting early adolescents for prevention efforts, 
189.25  especially early adolescents whose personal circumstances may 
189.26  lead to violent or harassing behavior; 
189.27     (8) opportunities for teachers to receive in-service 
189.28  training or attend other programs on strategies or curriculum 
189.29  designed to assist students in intervening in or preventing 
189.30  violence in school and at home; and 
189.31     (9) administrative policies that reflect, and a staff that 
189.32  models, nonviolent behaviors that do not display or condone 
189.33  sexual, racial, or cultural harassment. 
189.34     (c) The department may provide assistance at a neutral site 
189.35  to a nonpublic school participating in a district's program. 
189.36     Subd. 2.  [IN-SERVICE TRAINING.] Each district is 
190.1   encouraged to provide training for district staff and school 
190.2   board members to help students identify violence in the family 
190.3   and the community so that students may learn to resolve 
190.4   conflicts in effective, nonviolent ways.  The in-service 
190.5   training must be ongoing and involve experts familiar with 
190.6   domestic violence and personal safety issues. 
190.7      Subd. 3.  [FUNDING SOURCES.] Districts may accept funds 
190.8   from public and private sources for violence prevention programs 
190.9   developed and implemented under this section. 
190.10     Sec. 12.  [120B.12] [VIOLENCE PREVENTION EDUCATION GRANTS.] 
190.11     Subdivision 1.  [GRANT PROGRAM ESTABLISHED.] The 
190.12  commissioner of children, families, and learning, after 
190.13  consulting with the assistant commissioner of the office of drug 
190.14  policy and violence prevention, shall establish a violence 
190.15  prevention education grant program to enable a school district, 
190.16  an education district, or a group of districts that cooperate 
190.17  for a particular purpose to develop and implement or to continue 
190.18  a violence prevention program for students in kindergarten 
190.19  through grade 12 that can be integrated into existing 
190.20  curriculum.  A district or group of districts that elects to 
190.21  develop and implement or to continue a violence prevention 
190.22  program under section 126.77 is eligible to apply for a grant 
190.23  under this section. 
190.24     Subd. 2.  [GRANT APPLICATION.] To be eligible to receive a 
190.25  grant, a school district, an education district, a service 
190.26  cooperative, or a group of districts that cooperate for a 
190.27  particular purpose must submit an application to the 
190.28  commissioner in the form and manner and according to the 
190.29  timeline established by the commissioner.  The application must 
190.30  describe how the applicant will:  (1) continue or integrate into 
190.31  its existing K-12 curriculum a program for violence prevention 
190.32  that contains the program components listed in section 126.77; 
190.33  (2) collaborate with local organizations involved in violence 
190.34  prevention and intervention; and (3) structure the program to 
190.35  reflect the characteristics of the children, their families and 
190.36  the community involved in the program.  The commissioner may 
191.1   require additional information from the applicant.  When 
191.2   reviewing the applications, the commissioner shall determine 
191.3   whether the applicant has met the requirements of this 
191.4   subdivision. 
191.5      Subd. 3.  [GRANT AWARDS.] The commissioner may award grants 
191.6   for a violence prevention education program to eligible 
191.7   applicants as defined in subdivision 2.  Grant amounts may not 
191.8   exceed $3 per actual pupil unit in the district or group of 
191.9   districts in the prior school year.  Grant recipients should be 
191.10  geographically distributed throughout the state. 
191.11     Subd. 4.  [GRANT PROCEEDS.] A successful applicant must use 
191.12  the grant money to develop and implement or to continue a 
191.13  violence prevention program according to the terms of the grant 
191.14  application. 
191.15     Subd. 5.  [REPORT.] A report detailing the costs and 
191.16  results of programs funded under this section must be submitted 
191.17  to the chairs of the committees in the senate and house of 
191.18  representatives with jurisdiction over crime prevention funding 
191.19  and criminal justice policy by February 15 each year. 
191.20     Sec. 13.  [120B.13] [CITATION.] 
191.21     Sections 125.701 to 125.705 may be cited as the "Minnesota 
191.22  family connections act."  
191.23     Sec. 14.  [120B.14] [PURPOSE OF THE FAMILY CONNECTIONS 
191.24  ACT.] 
191.25     The legislature recognizes the unique and lifelong learning 
191.26  and development process of all human beings.  The legislature is 
191.27  committed to the goal of maximizing the individual growth 
191.28  potential of all learners.  The purposes of the family 
191.29  connections act are:  
191.30     (1) to offer family connections programs which emphasize 
191.31  learning and development based on learner outcomes; 
191.32     (2) to recognize and utilize the unique skills that 
191.33  teachers, students, family, and the community have in both the 
191.34  teaching process and the learning and development process; and 
191.35     (3) to provide an opportunity for maximum use of teachers, 
191.36  principals, and counselors.  
192.1      Sec. 15.  [120B.15] [PROGRAM SELECTION.] 
192.2      Subdivision 1.  [AUTHORIZATION.] A district or group of 
192.3   districts may establish an improved learning program.  
192.4      Subd. 2.  [RULES AND RIGHTS.] The state board of education 
192.5   may waive district compliance with its rules which would prevent 
192.6   implementation of an improved learning program.  Participation 
192.7   in an improved learning program as a principal-teacher, 
192.8   counselor-teacher, or career teacher must not affect seniority 
192.9   in the district or rights under the applicable collective 
192.10  bargaining agreement.  
192.11     Subd. 3.  [ADDITIONAL FUNDING.] A district providing an 
192.12  improved learning program may receive funds for the program from 
192.13  private sources and governmental agencies, including state or 
192.14  federal funds.  
192.15     Sec. 16.  [120B.16] [ADVISORY COUNCIL.] 
192.16     The board of a district providing a family connections 
192.17  program must appoint an advisory council.  Council members must 
192.18  be selected from the school attendance area in which programs 
192.19  are provided.  Members of the council may include students, 
192.20  teachers, principals, administrators and community members.  A 
192.21  majority of the members must be parents with children 
192.22  participating in the local program.  The local advisory council 
192.23  must advise the board in the development, coordination, 
192.24  supervision, and review of the career teacher program.  The 
192.25  council must meet at least two times each year with any 
192.26  established community education advisory council in the 
192.27  district.  Members of the council may be members of the 
192.28  community education advisory council.  The council must report 
192.29  to the school board. 
192.30     Sec. 17.  [120B.17] [FAMILY CONNECTIONS PROGRAM 
192.31  COMPONENTS.] 
192.32     Subdivision 1.  [MANDATORY COMPONENTS.] A family 
192.33  connections program must include:  
192.34     (1) participation by a designated individual as a career 
192.35  teacher, principal-teacher, or counselor teacher; 
192.36     (2) an emphasis on each individual child's unique learning 
193.1   and development needs; 
193.2      (3) procedures to give the career teacher a major 
193.3   responsibility for leadership of the instructional and 
193.4   noninstructional activities of each child beginning with early 
193.5   childhood family education; 
193.6      (4) procedures to involve parents in the learning and 
193.7   development experiences of their children; 
193.8      (5) procedures to implement outcome based education by 
193.9   focusing on the needs of the learner; 
193.10     (6) procedures to coordinate and integrate the 
193.11  instructional program with all community education programs; 
193.12     (7) procedures to concentrate career teacher programs at 
193.13  sites that provide early childhood family education and 
193.14  subsequent learning and development programs; and 
193.15     (8) procedures for the district to fund the program.  
193.16     Subd. 2.  [OPTIONAL COMPONENTS.] A family connections 
193.17  program may include:  
193.18     (1) efforts to improve curricula strategies, instructional 
193.19  strategies, and use of materials that respond to the individual 
193.20  educational needs and learning styles of each pupil in order to 
193.21  enable each pupil to make continuous progress and to learn at a 
193.22  rate appropriate to that pupil's abilities; 
193.23     (2) efforts to develop student abilities in basic skills; 
193.24  applied learning skills; and, when appropriate, arts; 
193.25  humanities; physical, natural, and social sciences; 
193.26  multicultural education; physical, emotional, and mental health; 
193.27  consumer economics; and career education; 
193.28     (3) use of community resources and communications media to 
193.29  pursue learning and development opportunities for pupils; 
193.30     (4) staff development for teachers and other school 
193.31  personnel; 
193.32     (5) improvements to the learning and development 
193.33  environment, including use of the community in general, to 
193.34  enhance the learning and development process; 
193.35     (6) cooperative efforts with other agencies involved with 
193.36  human services or child development and development of 
194.1   alternative community based learning and development 
194.2   experiences; 
194.3      (7) post-secondary education components for pupils who are 
194.4   able to accelerate or programs for pupils with special abilities 
194.5   and interests who are given advanced learning and development 
194.6   opportunities within existing programs; 
194.7      (8) use of volunteers in the learning and development 
194.8   program; 
194.9      (9) flexible attendance schedules for pupils; 
194.10     (10) adult education component; 
194.11     (11) coordination with early childhood family education and 
194.12  community education programs; 
194.13     (12) variable student/faculty ratios for special education 
194.14  students to provide for special programming; 
194.15     (13) inclusion of nonpublic pupils as part of the ratio in 
194.16  the career teacher, principal-teacher, and counselor teacher 
194.17  component; 
194.18     (14) application of educational research findings; 
194.19     (15) summer learning and development experiences for 
194.20  students as recommended by the career teacher, 
194.21  principal-teacher, and counselor teacher; 
194.22     (16) use of education assistants, teacher aides, or 
194.23  paraprofessionals as part of the career teacher program; 
194.24     (17) establishment of alternative criteria for high school 
194.25  graduation; and 
194.26     (18) variable age and learning size groupings of students. 
194.27     Sec. 18.  [120B.18] [CAREER TEACHER.] 
194.28     Subdivision 1.  [STATUS.] A family connections program may 
194.29  include a career teacher, principal-teacher, and counselor 
194.30  teacher component.  The career teacher, principal-teacher, and 
194.31  counselor teacher must not be the exclusive teacher for students 
194.32  assigned to them but shall serve as a primary teacher and 
194.33  perform the function of developing and implementing a student's 
194.34  overall learning and development program.  The career teacher, 
194.35  principal-teacher, and counselor teacher may be responsible for 
194.36  regular assignments as well as learning and development programs 
195.1   for other assigned students.  
195.2      Subd. 2.  [QUALIFICATIONS.] (a) An individual employed as a 
195.3   career teacher must be licensed as a teacher and shall be 
195.4   considered a teacher as defined in section 179A.03, subdivision 
195.5   18, for purposes of chapter 179A.  
195.6      (b) An individual employed as a principal teacher must be 
195.7   licensed as a principal and shall be considered a principal, as 
195.8   defined in section 179A.03, subdivision 12, for purposes of 
195.9   chapter 179A. 
195.10     (c) An individual employed as a counselor teacher must be 
195.11  licensed as a counselor and shall be considered a teacher, as 
195.12  defined in section 179A.03, subdivision 18, for purposes of 
195.13  chapter 179A. 
195.14     Subd. 3.  [STAFF/STUDENT RATIO.] (a) Except as provided in 
195.15  clause (b), one career teacher, principal-teacher, or counselor 
195.16  teacher shall be assigned for every 125 students.  For each 
195.17  special education student included in the assignment, the 1:125 
195.18  ratio must be reduced by one.  
195.19     (b) One principal-teacher shall be assigned for every 50 
195.20  students when the principal-teacher is also the principal of the 
195.21  school.  
195.22     Subd. 4.  [SELECTION; RENEWAL.] (a) The board must 
195.23  establish procedures for teachers, principals, and counselors to 
195.24  apply for the position of career teacher, principal-teacher, or 
195.25  counselor teacher.  The authority for selection of career 
195.26  teachers, principal-teachers, and counselor teachers is vested 
195.27  in the board and no individual shall have a right to employment 
195.28  as a career teacher, principal-teacher, or counselor teacher 
195.29  based on seniority or order of employment in the district.  
195.30     (b) Employment of the career teacher, principal-teacher, 
195.31  and counselor teacher may be on a 12-month basis with vacation 
195.32  time negotiated individually with the board.  The annual 
195.33  contract of a career teacher, principal-teacher, or counselor 
195.34  teacher may not be renewed, as the board shall see fit.  The 
195.35  board must give any teacher whose contract as a career teacher, 
195.36  principal-teacher, or counselor teacher it declines to renew for 
196.1   the following year written notice to that effect before April 
196.2   15.  If the board fails to renew the contract of a career 
196.3   teacher, principal-teacher, or counselor teacher, that 
196.4   individual must be reinstated to another position in the 
196.5   district if eligible pursuant to section 125.12 or 125.17.  
196.6      Subd. 5.  [DUTIES.] The career teacher, principal-teacher, 
196.7   and counselor teacher is responsible for:  
196.8      (1) the overall education, learning, and development plan 
196.9   of assigned students.  The career teacher, principal-teacher, 
196.10  and counselor teacher must design this plan with the student, 
196.11  parents, and other faculty, and must seek to maximize the 
196.12  learning and development potential and maturation level of each 
196.13  pupil; 
196.14     (2) measuring the proficiency of the assigned students and 
196.15  assisting other staff in identifying pupil needs and making 
196.16  appropriate educational and subject groupings; 
196.17     (3) when part of the district's plan, taking responsibility 
196.18  for the parent and early childhood education of assigned 
196.19  students; 
196.20     (4) designing and being responsible for program components 
196.21  which meet special learning needs of high potential and talented 
196.22  students; 
196.23     (5) coordinating the ongoing, year-to-year learning and 
196.24  development program for assigned students; and 
196.25     (6) developing learning and development portfolios.  
196.26     Sec. 19.  [120B.19] [FAMILY CONNECTIONS AID.] 
196.27     Subdivision 1.  [ELIGIBILITY.] A district that has a family 
196.28  connections program, according to sections 125.70 to 125.705, 
196.29  for one or more of its teachers is eligible for aid to extend 
196.30  the teaching contract of a family connections teacher. 
196.31     Subd. 2.  [STATE SHARE OF EXTENDED CONTRACT.] The state 
196.32  must pay two-thirds of the portion of the teaching contract, 
196.33  excluding fringe benefits, that is in addition to the standard 
196.34  teaching contract of the district.  The district must pay the 
196.35  remaining portion.  
196.36     Subd. 3.  [COMMISSIONER APPROVAL.] The commissioner may 
197.1   approve plans and applications for districts throughout the 
197.2   state for family connections aid.  The commissioner shall 
197.3   establish application procedures and deadlines.  
197.4      Subd. 4.  [USE OF AID.] Family connections aid may be used 
197.5   only to implement a family connections program.  
197.6      Sec. 20.  [120B.20] [LEARNING READINESS PROGRAMS.] 
197.7      Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A district or a 
197.8   group of districts may establish a learning readiness program 
197.9   for eligible children.  The purpose of a learning readiness 
197.10  program is to provide all eligible children adequate 
197.11  opportunities to participate in child development programs that 
197.12  enable the children to enter school with the necessary skills 
197.13  and behavior and family stability and support to progress and 
197.14  flourish. 
197.15     Subd. 2.  [CHILD ELIGIBILITY.] (a) A child is eligible to 
197.16  participate in a learning readiness program offered by the 
197.17  resident district or another district if the child is:  
197.18     (1) at least 3-1/2 years old but has not entered 
197.19  kindergarten; and 
197.20     (2) receives developmental screening under section 123.702 
197.21  within 90 days of enrolling in the program or the child's fourth 
197.22  birthday.  
197.23     (b) A child younger than 3-1/2 years old may participate in 
197.24  a learning readiness program if the district or group of 
197.25  districts that establishes the program determines that the 
197.26  program can more effectively accomplish its purpose by including 
197.27  children younger than 3-1/2 years old. 
197.28     Subd. 3.  [PROGRAM ELIGIBILITY.] A learning readiness 
197.29  program must include the following: 
197.30     (1) a comprehensive plan to anticipate and meet the needs 
197.31  of participating families by coordinating existing social 
197.32  services programs and by fostering collaboration among agencies 
197.33  or other community-based organizations and programs that provide 
197.34  a full range of flexible, family-focused services to families 
197.35  with young children; 
197.36     (2) a development and learning component to help children 
198.1   develop appropriate social, cognitive, and physical skills, and 
198.2   emotional well-being; 
198.3      (3) health referral services to address children's medical, 
198.4   dental, mental health, and nutritional needs; 
198.5      (4) a nutrition component to meet children's daily 
198.6   nutritional needs; 
198.7      (5) parents' involvement in meeting children's educational, 
198.8   health, social service, and other needs; 
198.9      (6) community outreach to ensure participation by families 
198.10  who represent the racial, cultural, and economic diversity of 
198.11  the community; and 
198.12     (7) community-based staff and program resources, including 
198.13  interpreters, that reflect the racial and ethnic characteristics 
198.14  of the children participating in the program. 
198.15     Subd. 4.  [PROGRAM CHARACTERISTICS.] Learning readiness 
198.16  programs are encouraged to: 
198.17     (1) prepare an individualized service plan to meet each 
198.18  child's developmental and learning needs; 
198.19     (2) provide parent education to increase parents' 
198.20  knowledge, understanding, skills, and experience in child 
198.21  development and learning; 
198.22     (3) foster substantial parent involvement that may include 
198.23  having parents develop curriculum or serve as a paid or 
198.24  volunteer educator, resource person, or other staff; 
198.25     (4) identify the needs of families in the content of the 
198.26  child's learning readiness; 
198.27     (5) expand collaboration with public organizations, 
198.28  businesses, nonprofit organizations, or other private 
198.29  organizations to develop a coordinated system of flexible, 
198.30  family-focused services available to anticipate and meet the 
198.31  full range of needs of all eligible children and their families; 
198.32     (6) coordinate treatment and follow-up services for 
198.33  children's identified physical and mental health problems; 
198.34     (7) offer transportation for eligible children and their 
198.35  families for whom other forms of transportation are unavailable 
198.36  or would constitute an excessive financial burden; 
199.1      (8) make substantial outreach efforts to assure significant 
199.2   participation by families with the greatest needs, including 
199.3   those families whose income level does not exceed the most 
199.4   recent update of the poverty guidelines required by sections 652 
199.5   and 673(2) of the Omnibus Budget Reconciliation Act of 1981 
199.6   (Public Law Number 97-35); 
199.7      (9) use community-based, trained home visitors serving as 
199.8   paraprofessionals to provide social support, referrals, parent 
199.9   education, and other services; 
199.10     (10) create community-based family resource centers and 
199.11  interdisciplinary teams; and 
199.12     (11) enhance the quality of family or center-based child 
199.13  care programs by providing supplementary services and resources, 
199.14  staff training, and assistance with children with special needs. 
199.15     Subd. 5.  [PURCHASE OR CONTRACT FOR SERVICES.] A district 
199.16  is encouraged to contract with a public or nonprofit 
199.17  organization to provide eligible children developmentally 
199.18  appropriate services that meet the program requirements in 
199.19  subdivision 3.  In the alternative, a district may pay tuition 
199.20  or fees to place an eligible child in an existing program.  A 
199.21  district may establish a new program where no existing, 
199.22  reasonably accessible program meets the program requirements in 
199.23  subdivision 3.  Services may be provided in a site-based program 
199.24  or in the home of the child or a combination of both.  The 
199.25  district may not restrict participation to district residents.  
199.26     Subd. 6.  [COORDINATION WITH OTHER PROVIDERS.] (a) The 
199.27  district must coordinate the learning readiness program with 
199.28  existing community-based social services providers and foster 
199.29  collaboration among agencies and other community-based 
199.30  organizations and programs that provide flexible, family-focused 
199.31  services to families with children.  The district must actively 
199.32  encourage greater sharing of responsibility and accountability 
199.33  among service providers and facilitate children's transition 
199.34  between programs.  
199.35     (b) To the extent possible, resources must follow the 
199.36  children so that children receive appropriate services in a 
200.1   stable environment and are not moved from one program location 
200.2   to another.  Where geographically feasible, the district must 
200.3   actively promote colocating of services for children and their 
200.4   families. 
200.5      Subd. 7.  [ADVISORY COUNCIL.] Each learning readiness 
200.6   program must have an advisory council composed of members of 
200.7   existing early education-related boards, parents of 
200.8   participating children, child care providers, culturally 
200.9   specific service organizations, local resource and referral 
200.10  agencies, and representatives of early childhood service 
200.11  providers.  The council must advise the board in creating and 
200.12  administering the program and must monitor the progress of the 
200.13  program.  The council must ensure that children at greatest risk 
200.14  receive appropriate services.  If the board is unable to appoint 
200.15  to the advisory council members of existing early 
200.16  education-related boards, it must appoint parents of children 
200.17  enrolled in the program who represent the racial, cultural, and 
200.18  economic diversity of the district and representatives of early 
200.19  childhood service providers as representatives to an existing 
200.20  advisory council. 
200.21     Subd. 8.  [PRIORITY CHILDREN.] The district must give 
200.22  greatest priority to providing services to eligible children 
200.23  identified, through a means such as the early childhood 
200.24  screening process, as being developmentally disadvantaged or 
200.25  experiencing risk factors that could impede their learning 
200.26  readiness. 
200.27     Subd. 9.  [CHILD RECORDS.] (a) A record of a child's 
200.28  progress and development must be maintained in the child's 
200.29  cumulative record while enrolled in the learning readiness 
200.30  program.  The cumulative record must be used for the purpose of 
200.31  planning activities to suit individual needs and shall become 
200.32  part of the child's permanent record.  The cumulative record is 
200.33  private data under chapter 13.  Information in the record may be 
200.34  disseminated to an educator or service provider only to the 
200.35  extent that that person has a need to know the information.  
200.36     (b) An educator or service provider may transmit 
201.1   information in the child's cumulative record to an educator or 
201.2   service provider in another program for young children when the 
201.3   child applies to enroll in that other program. 
201.4      Subd. 10.  [SUPERVISION.] A program provided by a board 
201.5   must be supervised by a licensed early childhood teacher, a 
201.6   certified early childhood educator, or a licensed parent 
201.7   educator.  A program provided according to a contract between a 
201.8   district and a nonprofit organization or another private 
201.9   organization must be supervised and staffed according to the 
201.10  terms of the contract.  
201.11     Subd. 11.  [DISTRICT STANDARDS.] The board of the district 
201.12  must develop standards for the learning readiness program that 
201.13  reflect the eligibility criteria in subdivision 3. The board 
201.14  must consider including in the standards the program 
201.15  characteristics in subdivision 4. 
201.16     Subd. 12.  [PROGRAM FEES.] A district may adopt a sliding 
201.17  fee schedule based on a family's income but must waive a fee for 
201.18  a participant unable to pay.  The fees charged must be designed 
201.19  to enable eligible children of all socioeconomic levels to 
201.20  participate in the program. 
201.21     Subd. 13.  [ADDITIONAL REVENUE.] A district or an 
201.22  organization contracting with a district may receive money or 
201.23  in-kind services from a public or private organization. 
201.24     Sec. 21.  [120B.21] [WAY-TO-GROW/SCHOOL READINESS PROGRAM.] 
201.25     Subdivision 1.  [ADMINISTRATION.] The commissioner of 
201.26  children, families, and learning shall administer the way to 
201.27  grow/school readiness program, in collaboration with the 
201.28  commissioners of health and human services, to promote 
201.29  intellectual, social, emotional, and physical development and 
201.30  school readiness of children prebirth to age six by coordinating 
201.31  and improving access to community-based and neighborhood-based 
201.32  services that support and assist all parents in meeting the 
201.33  health and developmental needs of their children at the earliest 
201.34  possible age.  
201.35     Subd. 2.  [PROGRAM COMPONENTS.] (a) A way to grow/school 
201.36  readiness program must: 
202.1      (1) collaborate and coordinate delivery of services with 
202.2   other community organizations and agencies serving children 
202.3   prebirth to age six and their families; 
202.4      (2) target services to families with children prebirth to 
202.5   age six with services increasing based on need; 
202.6      (3) build on existing services and coordinate a continuum 
202.7   of prebirth to age six essential services, including but not 
202.8   limited to prenatal health services, parent education and 
202.9   support, and preschool programs; 
202.10     (4) provide strategic outreach efforts to families using 
202.11  trained paraprofessionals such as home visitors; and 
202.12     (5) support of neighborhood oriented and culturally 
202.13  specific social support, information, outreach, and other 
202.14  programs to promote healthy development of children and to help 
202.15  parents obtain the information, resources, and parenting skills 
202.16  needed to nurture and care for their children. 
202.17     (b) A way to grow/school readiness program may include: 
202.18     (1) a program of home visitors to contact pregnant women 
202.19  early in their pregnancies, encourage them to obtain prenatal 
202.20  care, and provide social support, information, and referrals 
202.21  regarding prenatal care and well-baby care to reduce infant 
202.22  mortality, low birth weight, and childhood injury, disease, and 
202.23  disability; 
202.24     (2) a program of home visitors to provide social support, 
202.25  information, and referrals regarding parenting skills and to 
202.26  encourage families to participate in parenting skills programs 
202.27  and other family supportive services; 
202.28     (3) support of neighborhood-based or community-based 
202.29  parent-child and family resource centers or interdisciplinary 
202.30  resource teams to offer supportive services to families with 
202.31  preschool children; 
202.32     (4) staff training, technical assistance, and incentives 
202.33  for collaboration designed to raise the quality of community 
202.34  services relating to prenatal care, child development, health, 
202.35  and school readiness; 
202.36     (5) programs to raise general public awareness about 
203.1   practices that promote healthy child development and school 
203.2   readiness; 
203.3      (6) programs to expand public and private collaboration to 
203.4   promote the development of a coordinated and culturally specific 
203.5   system of services available to all families; 
203.6      (7) support of periodic screening and evaluation services 
203.7   for preschool children to assure adequate developmental 
203.8   progress; 
203.9      (8) support of health, educational, and other developmental 
203.10  services needed by families with preschool children; 
203.11     (9) support of family prevention and intervention programs 
203.12  needed to address risks of child abuse or neglect; 
203.13     (10) development or support of a jurisdiction-wide 
203.14  coordinating agency to develop and oversee programs to enhance 
203.15  child health, development, and school readiness with special 
203.16  emphasis on neighborhoods with a high proportion of children in 
203.17  need; and 
203.18     (11) other programs or services to improve the health, 
203.19  development, and school readiness of children in target 
203.20  neighborhoods and communities. 
203.21     Subd. 3.  [ELIGIBLE GRANTEES.] An application for a grant 
203.22  may be submitted by any of the following entities: 
203.23     (1) a city, town, county, school district, or other local 
203.24  unit of government; 
203.25     (2) two or more governmental units organized under a joint 
203.26  powers agreement; 
203.27     (3) a community action agency that satisfies the 
203.28  requirements of section 268.53, subdivision 1; or 
203.29     (4) a nonprofit organization, or consortium of nonprofit 
203.30  organizations, that demonstrates collaborative effort with at 
203.31  least one unit of local government. 
203.32     Subd. 4.  [DISTRIBUTION.] The commissioner shall give 
203.33  priority to funding existing programs. 
203.34     To the extent possible, the commissioner shall award grants 
203.35  to applicants with experience or demonstrated ability in 
203.36  providing comprehensive, multidisciplinary, community-based 
204.1   programs with objectives similar to those listed in subdivision 
204.2   2, or in providing other human services or social services 
204.3   programs using a multidisciplinary, community-based approach. 
204.4      Subd. 5.  [APPLICATIONS.] Each grant application must 
204.5   propose a five-year program designed to accomplish the purposes 
204.6   of this section.  The application must be submitted on forms 
204.7   provided by the commissioner.  The grant application must 
204.8   include: 
204.9      (1) a description of the specific neighborhoods that will 
204.10  be served under the program and the name, address, and a 
204.11  description of each community agency or agencies with which the 
204.12  applicant intends to contract to provide services using grant 
204.13  money; 
204.14     (2) a letter of intent from each community agency 
204.15  identified in clause (1) that indicates the agency's willingness 
204.16  to participate in the program and approval of the proposed 
204.17  program structure and components; 
204.18     (3) a detailed description of the structure and components 
204.19  of the proposed program and an explanation of how each component 
204.20  will contribute to accomplishing the purposes of this section; 
204.21     (4) a description of how public and private resources, 
204.22  including schools, health care facilities, government agencies, 
204.23  neighborhood organizations, and other resources, will be 
204.24  coordinated and made accessible to families in target 
204.25  neighborhoods, including letters of intent from public and 
204.26  private agencies indicating their willingness to cooperate with 
204.27  the program; 
204.28     (5) a detailed, proposed budget that demonstrates the 
204.29  ability of the program to accomplish the purposes of this 
204.30  section using grant money and other available resources, 
204.31  including funding sources other than a grant; and 
204.32     (6) a comprehensive evaluation plan for measuring the 
204.33  success of the program in meeting the objectives of the overall 
204.34  grant program and the individual grant project, including an 
204.35  assessment of the impact of the program in terms of at least 
204.36  three of the following criteria:  
205.1      (i) utilization rates of community services; 
205.2      (ii) availability of support systems for families; 
205.3      (iii) birth weights of newborn babies; 
205.4      (iv) child accident rates; 
205.5      (v) utilization rates of prenatal care; 
205.6      (vi) reported rates of child abuse; 
205.7      (vii) rates of health screening and evaluation; and 
205.8      (viii) school readiness of way to grow participants 
205.9   compared to nonparticipants. 
205.10     Subd. 6.  [MATCH.] Each dollar of state money must be 
205.11  matched with 50 cents of nonstate money.  Programs may match 
205.12  state money with in-kind contributions, including volunteer 
205.13  assistance. 
205.14     Subd. 7.  [ADVISORY COMMITTEES.] The commissioner shall 
205.15  establish a program advisory committee consisting of persons 
205.16  knowledgeable in child development, child health, and family 
205.17  services, who reflect the geographic, cultural, racial, and 
205.18  ethnic diversity of the state; and representatives of the 
205.19  commissioners of children, families, and learning, human 
205.20  services, and health.  This program advisory committee must 
205.21  review grant applications, assist in distribution of the grants, 
205.22  and monitor progress of the way to grow/school readiness 
205.23  program.  Each grantee must establish a program advisory board 
205.24  of 12 or more members to advise the grantee on program design, 
205.25  operation, and evaluation.  The board must include 
205.26  representatives of local units of government and representatives 
205.27  of the project area who reflect the geographic, cultural, 
205.28  racial, and ethnic diversity of that community.  
205.29     Subd. 8.  [REPORT.] The advisory committee must report to 
205.30  the education committee of the legislature by January 15, 1993, 
205.31  on the evaluation required in subdivision 5, clause (6), and 
205.32  must make recommendations for establishing successful way to 
205.33  grow programs in unserved areas of the state. 
205.34     Sec. 22.  [120B.22] [FAMILY SERVICES AND COMMUNITY-BASED 
205.35  COLLABORATIVES.] 
205.36     Subdivision 1.  [ESTABLISHMENT.] (a) In order to qualify as 
206.1   a family services collaborative, a minimum of one school 
206.2   district, one county, one public health entity, one community 
206.3   action agency as defined in section 268.53, and one Head Start 
206.4   grantee if the community action agency is not the designated 
206.5   federal grantee for the Head Start program must agree in writing 
206.6   to provide coordinated family services and commit resources to 
206.7   an integrated fund.  Collaboratives are expected to have broad 
206.8   community representation, which may include other local 
206.9   providers, including additional school districts, counties, and 
206.10  public health entities, other municipalities, public libraries, 
206.11  existing culturally specific community organizations, tribal 
206.12  entities, local health organizations, private and nonprofit 
206.13  service providers, child care providers, local foundations, 
206.14  community-based service groups, businesses, local transit 
206.15  authorities or other transportation providers, community action 
206.16  agencies under section 268.53, senior citizen volunteer 
206.17  organizations, parent organizations, parents, and sectarian 
206.18  organizations that provide nonsectarian services. 
206.19     (b) Community-based collaboratives composed of 
206.20  representatives of schools, local businesses, local units of 
206.21  government, parents, students, clergy, health and social 
206.22  services providers, youth service organizations, and existing 
206.23  culturally specific community organizations may plan and develop 
206.24  services for children and youth.  A community-based 
206.25  collaborative must agree to collaborate with county, school 
206.26  district, community action, and public health entities.  Their 
206.27  services may include opportunities for children or youth to 
206.28  improve child health and development, reduce barriers to 
206.29  adequate school performance, improve family functioning, provide 
206.30  community service, enhance self esteem, and develop general 
206.31  employment skills.  
206.32     (c) Members of the governing bodies of political 
206.33  subdivisions involved in the establishment of a family services 
206.34  collaborative shall select representatives of the 
206.35  nongovernmental entities listed in paragraph (a) to serve on the 
206.36  governing board of a collaborative.  The governing body members 
207.1   of the political subdivisions shall select one or more 
207.2   representatives of the nongovernmental entities within the 
207.3   family service collaborative. 
207.4      Subd. 2.  [DEFINITION.] For purposes of this section, 
207.5   "collaborative" means either a family services collaborative 
207.6   described under subdivision 1, paragraph (a), or community-based 
207.7   collaboratives described under subdivision 1, paragraph (b). 
207.8      Subd. 3.  [DUTIES.] (a) Each collaborative must: 
207.9      (1) establish, with assistance from families and service 
207.10  providers, clear goals for addressing the health, developmental, 
207.11  educational, and family-related needs of children and youth and 
207.12  use outcome-based indicators to measure progress toward 
207.13  achieving those goals; 
207.14     (2) establish a comprehensive planning process that 
207.15  involves all sectors of the community, identifies local needs, 
207.16  and surveys existing local programs; 
207.17     (3) integrate service funding sources so that children and 
207.18  their families obtain services from providers best able to 
207.19  anticipate and meet their needs; 
207.20     (4) coordinate families' services to avoid duplicative and 
207.21  overlapping assessment and intake procedures; 
207.22     (5) focus primarily on family-centered services; 
207.23     (6) encourage parents and volunteers to actively 
207.24  participate by using flexible scheduling and actively recruiting 
207.25  volunteers; 
207.26     (7) provide services in locations that are readily 
207.27  accessible to children and families; 
207.28     (8) use new or reallocated funds to improve or enhance 
207.29  services provided to children and their families; 
207.30     (9) identify federal, state, and local institutional 
207.31  barriers to coordinating services and suggest ways to remove 
207.32  these barriers; and 
207.33     (10) design and implement an integrated local service 
207.34  delivery system for children and their families that coordinates 
207.35  services across agencies and is client centered.  The delivery 
207.36  system shall provide a continuum of services for children birth 
208.1   to age 18, or birth through age 21 for individuals with 
208.2   disabilities.  The collaborative shall describe the community 
208.3   plan for serving pregnant women and children from birth to age 
208.4   six. 
208.5      (b) The outcome-based indicators developed in paragraph 
208.6   (a), clause (1), may include the number of low birth weight 
208.7   babies, the infant mortality rate, the number of children who 
208.8   are adequately immunized and healthy, require out-of-home 
208.9   placement or long-term special education services, and the 
208.10  number of minor parents. 
208.11     Subd. 4.  [DUTIES OF CERTAIN COORDINATING BODIES.] By 
208.12  mutual agreement of the collaborative and a coordinating body 
208.13  listed in this subdivision, a family services collaborative may 
208.14  assume the duties of a community transition interagency 
208.15  committee established under section 120.17, subdivision 16; an 
208.16  interagency early intervention committee established under 
208.17  section 120.1701, subdivision 5; a local advisory council 
208.18  established under section 245.4875, subdivision 5; or a local 
208.19  coordinating council established under section 245.4875, 
208.20  subdivision 6. 
208.21     Subd. 5.  [INTEGRATED LOCAL SERVICE DELIVERY SYSTEM.] A 
208.22  collaborative must design an integrated local service delivery 
208.23  system that coordinates funding streams and the delivery of 
208.24  services between existing agencies.  The integrated local 
208.25  service delivery system may: 
208.26     (1) improve outreach and early identification of children 
208.27  and families in need of services and intervene across service 
208.28  systems on behalf of families; 
208.29     (2) offer an inclusive service system that supports all 
208.30  families within a community; 
208.31     (3) coordinate services that eliminate the need to match 
208.32  funding streams, provider eligibilities, or clients with 
208.33  multiple providers; 
208.34     (4) improve access to services by coordinating 
208.35  transportation services; 
208.36     (5) provide initial outreach to all new mothers and 
209.1   periodic family visits to children who are potentially at risk; 
209.2      (6) coordinate assessment across systems to determine which 
209.3   children and families need coordinated multiagency services and 
209.4   supplemental services; 
209.5      (7) include multiagency service plans and coordinate 
209.6   unitary case management; and 
209.7      (8) integrate funding of services. 
209.8      Subd. 6.  [INFORMATION SHARING.] (a) The school district, 
209.9   county, and public health entity members of a family services 
209.10  collaborative may inform each other as to whether an individual 
209.11  or family is being served by the member, without the consent of 
209.12  the subject of the data.  If further information sharing is 
209.13  necessary in order for the collaborative to carry out duties 
209.14  under subdivision 3 or 5, the collaborative may share data if 
209.15  the individual, as defined in section 13.02, subdivision 8, 
209.16  gives written informed consent.  Data on individuals shared 
209.17  under this subdivision retain the original classification as 
209.18  defined under section 13.02, as to each member of the 
209.19  collaborative with whom the data is shared. 
209.20     (b) If a federal law or regulation impedes information 
209.21  sharing that is necessary in order for a collaborative to carry 
209.22  out duties under subdivision 3 or 5, the appropriate state 
209.23  agencies shall seek a waiver or exemption from the applicable 
209.24  law or regulation. 
209.25     Subd. 7.  [INTEGRATED FUND.] (a) A collaborative must 
209.26  establish an integrated fund to help provide an integrated 
209.27  service system and fund additional supplemental services.  The 
209.28  integrated fund may consist of federal, state, local, or private 
209.29  resources.  The collaborative agreement must specify a minimum 
209.30  financial commitment by the contributors to an integrated fund.  
209.31  Contributors may not reduce their financial commitment except as 
209.32  specified in the agreement or by federal declaration. 
209.33     (b) A collaborative must seek to maximize federal and 
209.34  private funds by designating local expenditures for services 
209.35  that can be matched with federal or private grant funds and by 
209.36  designing services to meet the requirements for state or federal 
210.1   reimbursement.  
210.2      (c) Collaboratives may seek to maximize federal 
210.3   reimbursement of funds under section 256F.10. 
210.4      Subd. 8.  [LOCAL PLANS.] The collaborative plan must 
210.5   describe how the collaborative will carry out the duties and 
210.6   implement the integrated local services delivery system required 
210.7   under this section.  The plan must include a list of the 
210.8   collaborative participants, a copy of the agreement required 
210.9   under subdivision 1, the amount and source of resources each 
210.10  participant will contribute to the integrated fund, and methods 
210.11  for increasing local participation in the collaborative, 
210.12  involving parents and other community members in implementing 
210.13  and operating the collaborative, and providing effective 
210.14  outreach services to all families with young children in the 
210.15  community.  The plan must also include specific goals that the 
210.16  collaborative intends to achieve and methods for objectively 
210.17  measuring progress toward meeting the goals. 
210.18     Subd. 9.  [PLAN APPROVAL BY THE CHILDREN'S CABINET.] (a) 
210.19  The children's cabinet must approve local plans for 
210.20  collaboratives.  In approving local plans, the children's 
210.21  cabinet must give highest priority to a plan that provides: 
210.22     (1) early intervention and family outreach services; 
210.23     (2) family visitation services; 
210.24     (3) a continuum of services for children from birth to age 
210.25  18; 
210.26     (4) family preservation services; 
210.27     (5) culturally sensitive approaches for delivering services 
210.28  and utilizing culturally specific organizations; 
210.29     (6) clearly defined outcomes and valid methods of 
210.30  assessment; 
210.31     (7) effective service coordination; 
210.32     (8) participation by the maximum number of jurisdictions 
210.33  and local, county, and state funding sources; 
210.34     (9) integrated community service providers and local 
210.35  resources; 
210.36     (10) integrated transportation services; 
211.1      (11) integrated housing services; and 
211.2      (12) coordinated services that include a children's mental 
211.3   health collaborative authorized by law. 
211.4      (b) The children's cabinet must ensure that the 
211.5   collaboratives established under this section do not conflict 
211.6   with any state or federal policy or program and do not 
211.7   negatively impact the state budget.  
211.8      Subd. 10.  [RECEIPT OF FUNDS.] The office of strategic and 
211.9   long-range planning may receive and administer public and 
211.10  private funds for the purposes of Laws 1993, chapter 224. 
211.11     Sec. 23.  [120B.23] [PURPOSE.] 
211.12     The purpose of sections 121.85 to 121.88 is to make maximum 
211.13  use of the public schools of Minnesota by the community and to 
211.14  expand utilization by the school of the human resources of the 
211.15  community, by establishing a community education program. 
211.16     Sec. 24.  [120B.24] [COMMUNITY EDUCATION PROGRAMS; ADVISORY 
211.17  COUNCIL.] 
211.18     Subdivision 1.  [AUTHORIZATION.] Each school board may 
211.19  initiate a community education program in its district and 
211.20  provide for the general supervision of the program.  Each board 
211.21  may, as it considers appropriate, employ community education 
211.22  directors and coordinators to further the purposes of the 
211.23  community education program.  
211.24     Subd. 2.  [ADVISORY COUNCIL.] Each board must provide for 
211.25  an advisory council to consist of members who represent:  
211.26  various service organizations; churches; public and nonpublic 
211.27  schools; local government including elected officials; public 
211.28  and private nonprofit agencies serving youth and families; 
211.29  parents; youth; park, recreation or forestry services of 
211.30  municipal or local government units located in whole or in part 
211.31  within the boundaries of the school district; and any other 
211.32  groups participating in the community education program in the 
211.33  school district. 
211.34     Subd. 3.  [COOPERATION.] The council must function in 
211.35  cooperation with the community education director in an advisory 
211.36  capacity in the interest of promoting the goals and objectives 
212.1   of sections 121.85 to 121.88. 
212.2      Subd. 4.  [DUPLICATION POLICY.] Each council must adopt a 
212.3   policy to reduce and eliminate program duplication within the 
212.4   district. 
212.5      Subd. 5.  [SUMMER PROGRAMS.] Notwithstanding any law to the 
212.6   contrary, during the summer a school district may offer 
212.7   community education programs to elementary and secondary 
212.8   pupils.  The district may use community education revenue 
212.9   received pursuant to section 124.2713 and charge fees for the 
212.10  cost of the programs.  
212.11     Subd. 6.  [PROGRAMS FOR ADULTS WITH DISABILITIES.] A board 
212.12  may offer, as part of a community education program, a program 
212.13  for adults with disabilities.  Boards are encouraged to offer 
212.14  programs cooperatively with other districts and organizations.  
212.15  Programs may not be limited to district residents.  Programs may 
212.16  include: 
212.17     (1) services enabling the adults to participate in 
212.18  community activities or community education classes; 
212.19     (2) classes specifically for adults with disabilities; 
212.20     (3) outreach activities to identify adults needing service; 
212.21     (4) activities to increase public awareness of the roles of 
212.22  people with disabilities; 
212.23     (5) activities to enhance the role of people with 
212.24  disabilities in the community; and 
212.25     (6) other direct and indirect services and activities 
212.26  benefiting adults with disabilities.  
212.27     Subd. 7.  [PROGRAM APPROVAL.] To be eligible for revenue 
212.28  for the program for adults with disabilities, a program and 
212.29  budget must receive approval from the community education 
212.30  section in the department.  Approval may be for five years.  
212.31  During that time, a board must report any significant changes to 
212.32  the department for approval.  For programs offered 
212.33  cooperatively, the request for approval must include an 
212.34  agreement on the method by which local money is to be derived 
212.35  and distributed.  A request for approval must include all of the 
212.36  following:  
213.1      (1) characteristics of the people to be served; 
213.2      (2) description of the program services and activities; 
213.3      (3) program budget and amount of aid requested; 
213.4      (4) participation by adults with disabilities in developing 
213.5   the program; 
213.6      (5) assessment of the needs of adults with disabilities; 
213.7   and 
213.8      (6) cooperative efforts with community organizations. 
213.9      Subd. 8.  [YOUTH DEVELOPMENT PLANS.] A district advisory 
213.10  council may prepare a youth development plan.  The council is 
213.11  encouraged to use the state guidelines when developing the local 
213.12  plan.  The school board may approve the youth development plan. 
213.13     Subd. 9.  [YOUTH SERVICE PROGRAMS.] A school board may 
213.14  offer, as part of a community education program with a youth 
213.15  development program, a youth service program that provides young 
213.16  people with meaningful opportunities to become involved in their 
213.17  community, develop individual capabilities, make career 
213.18  connections, seek support networks and services, become active 
213.19  citizens, and address community needs through youth service.  
213.20  The board may award up to one credit, or the equivalent, toward 
213.21  graduation for a pupil who completes the youth service 
213.22  requirements of the district.  The community education advisory 
213.23  council, after considering the results of the commissioner's 
213.24  study under section 121.885, subdivision 1, must design the 
213.25  program in cooperation with the district planning, evaluating 
213.26  and reporting committee and local organizations that train 
213.27  volunteers or need volunteers' services.  Programs must include: 
213.28     (1) preliminary training for pupil volunteers conducted, 
213.29  when possible, by organizations experienced in such training; 
213.30     (2) supervision of the pupil volunteers to ensure 
213.31  appropriate placement and adequate learning opportunity; 
213.32     (3) sufficient opportunity, in a positive setting for human 
213.33  development, for pupil volunteers to develop general skills in 
213.34  preparation for employment, to enhance self-esteem and 
213.35  self-worth, and to give genuine service to their community; 
213.36     (4) integration of academic learning with the service 
214.1   experience; and 
214.2      (5) integration of youth community service with elementary 
214.3   and secondary curriculum. 
214.4      Youth service projects include, but are not limited to, the 
214.5   following: 
214.6      (1) human services for the elderly, including home care and 
214.7   related services; 
214.8      (2) tutoring and mentoring; 
214.9      (3) training for and providing emergency services; 
214.10     (4) services at extended day programs; 
214.11     (5) environmental services; and 
214.12     (6) service-learning programs in which schools, including 
214.13  post-secondary schools, and employers work together with young 
214.14  people to provide them with meaningful opportunities for 
214.15  community service and with the academic and technical skills 
214.16  that employers require. 
214.17     The commissioner shall maintain a list of acceptable 
214.18  projects with a description of each project.  A project that is 
214.19  not on the list must be approved by the commissioner.  
214.20     A youth service project must have a community sponsor that 
214.21  may be a governmental unit or nonprofit organization.  To assure 
214.22  that pupils provide additional services, each sponsor must 
214.23  assure that pupil services do not displace employees or reduce 
214.24  the workload of any employee. 
214.25     The commissioner shall assist districts in planning youth 
214.26  service programs, implementing programs, and developing 
214.27  recommendations for obtaining community sponsors. 
214.28     Subd. 10.  [EXTENDED DAY PROGRAMS.] A school board may 
214.29  offer, as part of a community education program, an extended day 
214.30  program for children from kindergarten through grade 6 for the 
214.31  purpose of expanding students' learning opportunities.  A 
214.32  program must include the following: 
214.33     (1) adult supervised programs while school is not in 
214.34  session; 
214.35     (2) parental involvement in program design and direction; 
214.36     (3) partnerships with the kindergarten through grade 12 
215.1   system, and other public, private, or nonprofit entities; and 
215.2      (4) opportunities for trained secondary school pupils to 
215.3   work with younger children in a supervised setting as part of a 
215.4   community service program. 
215.5      The district may charge a sliding fee based upon family 
215.6   income for extended day programs.  The district may receive 
215.7   money from other public or private sources for the extended day 
215.8   program.  The board of the district must develop standards for 
215.9   school age child care programs.  Districts with programs in 
215.10  operation before July 1, 1990, must adopt standards before 
215.11  October 1, 1991.  All other districts must adopt standards 
215.12  within one year after the district first offers services under a 
215.13  program authorized by this subdivision.  The state board of 
215.14  education may not adopt rules for extended day programs. 
215.15     Sec. 25.  [120B.25] [EARLY CHILDHOOD FAMILY EDUCATION 
215.16  PROGRAMS.] 
215.17     Subdivision 1.  [ESTABLISHMENT.] A district that provides a 
215.18  community education program may establish an early childhood 
215.19  family education program.  Two or more districts, each of which 
215.20  provides a community education program, may cooperate to jointly 
215.21  provide an early childhood family education program.  
215.22     Subd. 2.  [PROGRAM CHARACTERISTICS.] Early childhood family 
215.23  education programs are programs for children in the period of 
215.24  life from birth to kindergarten, for the parents of such 
215.25  children, and for expectant parents.  The programs may include 
215.26  the following:  
215.27     (1) programs to educate parents about the physical, mental, 
215.28  and emotional development of children; 
215.29     (2) programs to enhance the skills of parents in providing 
215.30  for their children's learning and development; 
215.31     (3) learning experiences for children and parents; 
215.32     (4) activities designed to detect children's physical, 
215.33  mental, emotional, or behavioral problems that may cause 
215.34  learning problems; 
215.35     (5) activities and materials designed to encourage 
215.36  self-esteem, skills, and behavior that prevent sexual and other 
216.1   interpersonal violence; 
216.2      (6) educational materials which may be borrowed for home 
216.3   use; 
216.4      (7) information on related community resources; 
216.5      (8) programs to prevent child abuse and neglect; or 
216.6      (9) other programs or activities to improve the health, 
216.7   development, and learning readiness of children.  
216.8      The programs must not include activities for children that 
216.9   do not require substantial involvement of the children's 
216.10  parents.  The programs must be reviewed periodically to assure 
216.11  the instruction and materials are not racially, culturally, or 
216.12  sexually biased.  The programs must encourage parents to be 
216.13  aware of practices that may affect equitable development of 
216.14  children. 
216.15     Subd. 3.  [SUBSTANTIAL PARENTAL INVOLVEMENT.] The 
216.16  requirement of substantial parental involvement in subdivision 2 
216.17  means that: 
216.18     (a) parents must be physically present much of the time in 
216.19  classes with their children or be in concurrent classes; 
216.20     (b) parenting education or family education must be an 
216.21  integral part of every early childhood family education program; 
216.22     (c) early childhood family education appropriations must 
216.23  not be used for traditional day care or nursery school, or 
216.24  similar programs; and 
216.25     (d) the form of parent involvement common to kindergarten, 
216.26  elementary school, or early childhood special education programs 
216.27  such as parent conferences, newsletters, and notes to parents do 
216.28  not qualify a program under subdivision 2. 
216.29     Subd. 4.  [HOME VISITING PROGRAM.] (a) The commissioner 
216.30  shall include as part of the early childhood family education 
216.31  programs a parent education component to prevent child abuse and 
216.32  neglect.  This parent education component must include: 
216.33     (1) expanding statewide the home visiting component of the 
216.34  early childhood family education programs; 
216.35     (2) training parent educators, child educators, community 
216.36  outreach workers, and home visitors in the dynamics of child 
217.1   abuse and neglect and positive parenting and discipline 
217.2   practices; and 
217.3      (3) developing and disseminating education and public 
217.4   information materials that promote positive parenting skills and 
217.5   prevent child abuse and neglect. 
217.6      (b) The parent education component must: 
217.7      (1) offer to isolated or at-risk families home visiting 
217.8   parent education services that at least address parenting 
217.9   skills, a child's development and stages of growth, 
217.10  communication skills, managing stress, problem-solving skills, 
217.11  positive child discipline practices, methods of improving 
217.12  parent-child interactions and enhancing self-esteem, using 
217.13  community support services and other resources, and encouraging 
217.14  parents to have fun with and enjoy their children; 
217.15     (2) develop a risk assessment tool to determine the 
217.16  family's level of risk; 
217.17     (3) establish clear objectives and protocols for home 
217.18  visits; 
217.19     (4) determine the frequency and duration of home visits 
217.20  based on a risk-need assessment of the client, with home visits 
217.21  beginning in the second trimester of pregnancy and continuing, 
217.22  based on client need, until a child is six years old; 
217.23     (5) encourage families to make a transition from home 
217.24  visits to site-based parenting programs to build a family 
217.25  support network and reduce the effects of isolation; 
217.26     (6) develop and distribute education materials on 
217.27  preventing child abuse and neglect that may be used in home 
217.28  visiting programs and parent education classes and distributed 
217.29  to the public; 
217.30     (7) initially provide at least 40 hours of training and 
217.31  thereafter ongoing training for parent educators, child 
217.32  educators, community outreach workers, and home visitors that 
217.33  covers the dynamics of child abuse and neglect, domestic 
217.34  violence and victimization within family systems, signs of abuse 
217.35  or other indications that a child may be at risk of being abused 
217.36  or neglected, what child abuse and neglect are, how to properly 
218.1   report cases of child abuse and neglect, respect for cultural 
218.2   preferences in child rearing, what community resources, social 
218.3   service agencies, and family support activities and programs are 
218.4   available, child development and growth, parenting skills, 
218.5   positive child discipline practices, identifying stress factors 
218.6   and techniques for reducing stress, home visiting techniques, 
218.7   and risk assessment measures; 
218.8      (8) provide program services that are community-based, 
218.9   accessible, and culturally relevant; and 
218.10     (9) foster collaboration among existing agencies and 
218.11  community-based organizations that serve young children and 
218.12  their families. 
218.13     (c) Home visitors should reflect the demographic 
218.14  composition of the community the home visitor is serving to the 
218.15  extent possible. 
218.16     Subd. 5.  [SEPARATE ACCOUNTS.] The district must maintain a 
218.17  separate account within the community education fund for money 
218.18  for early childhood family education programs.  
218.19     Subd. 6.  [PARTICIPANTS' FEES.] A district may charge a 
218.20  reasonable fee but it shall waive the fee for a participant 
218.21  unable to pay.  
218.22     Subd. 7.  [ADDITIONAL FUNDING.] A district may receive 
218.23  funds from any governmental agency or private source.  
218.24     Subd. 8.  [COORDINATION.] A district is encouraged to 
218.25  coordinate the program with its special education and vocational 
218.26  education programs and with related services provided by other 
218.27  governmental agencies and nonprofit agencies.  
218.28     A district is encouraged to coordinate adult basic 
218.29  education programs provided to parents and early childhood 
218.30  family education programs provided to children to accomplish the 
218.31  goals of section 126.69.  
218.32     Subd. 9.  [DISTRICT ADVISORY COUNCILS.] The board must 
218.33  appoint an advisory council from the area in which the program 
218.34  is provided.  A majority of the council must be parents 
218.35  participating in the program.  The council must assist the board 
218.36  in developing, planning, and monitoring the early childhood 
219.1   family education program.  The council must report to the board 
219.2   and the community education advisory council.  
219.3      Subd. 10.  [ALTERNATIVE COUNCIL.] A board may direct the 
219.4   community education council, required according to section 
219.5   121.88, subdivision 2, to perform the functions of the advisory 
219.6   council for early childhood family education. 
219.7      Subd. 11.  [TEACHERS.] A school board must employ necessary 
219.8   qualified teachers for its early childhood family education 
219.9   programs.  
219.10     Subd. 12.  [ASSISTANCE.] The department must provide 
219.11  assistance to districts with programs described in this 
219.12  section.  The department must establish guidelines that list 
219.13  barriers to learning and development affecting children served 
219.14  by early childhood family education programs.  
219.15     Sec. 26.  [120B.26] [ENDOWED CHAIR.] 
219.16     Subdivision 1.  [PURPOSE.] The purpose of the endowed chair 
219.17  program is to increase curriculum offerings and learning 
219.18  experiences available to students. 
219.19     Subd. 2.  [ELIGIBILITY.] A school site, represented by the 
219.20  school site council or, if no site council exists, the principal 
219.21  or lead teacher, and the party interested in endowing a chair 
219.22  may enter into an agreement for an endowed chair for no longer 
219.23  than one year in length.  The party endowing the chair and the 
219.24  school site may, at their discretion, renew annually. 
219.25     Subd. 3.  [PROGRAM.] An endowed chair program may be for a 
219.26  semester, a summer session, or a full school year.  Curriculum 
219.27  developed or provided under the endowed chair program must 
219.28  supplement the existing curriculum offerings available at the 
219.29  school in the particular subject chosen. 
219.30     Subd. 4.  [AGREEMENT.] The agreement must make available 
219.31  funds sufficient for the salary and benefit costs of the 
219.32  instructor, and necessary supplies for the course.  The 
219.33  participating site must provide the classroom space and 
219.34  administer the program.  The parties, in consultation with the 
219.35  school district and the exclusive representative of the 
219.36  teachers, jointly select the instructor for the endowed chair. 
220.1      Sec. 27.  [120B.27] [SERVICE LEARNING AND WORK-BASED 
220.2   LEARNING CURRICULUM AND PROGRAMS.] 
220.3      Subdivision 1.  [SERVICE-LEARNING AND WORK-BASED LEARNING 
220.4   PROGRAMS STUDY.] The governor's workforce development council 
220.5   must assist the commissioner in studying how to combine 
220.6   community service activities and service-learning with 
220.7   work-based learning programs. 
220.8      Subd. 2.  [SERVICE-LEARNING PROGRAMS DEVELOPED.] The 
220.9   commissioner, in consultation with the commission, shall develop 
220.10  a service-learning program curriculum that includes a policy 
220.11  framework and strategies for youth community service and an 
220.12  infrastructure for mentoring youth.  The commissioner shall 
220.13  include in the curriculum at least the following: 
220.14     (1) youth community service strategies that enable young 
220.15  people to make significant contributions to the welfare of their 
220.16  community through such organizations as schools, colleges, 
220.17  government agencies, and community-based organizations or 
220.18  through individual efforts; 
220.19     (2) mentoring strategies that enable young people to be 
220.20  matched with caring, responsible individuals who can encourage 
220.21  and guide the young people in their personal growth and 
220.22  development; 
220.23     (3) guidelines, criteria, and procedures for community 
220.24  service programs that incorporate the results of the study in 
220.25  subdivision 1; and 
220.26     (4) criteria for community service activities and 
220.27  service-learning.  
220.28     Subd. 3.  [STRUCTURING PROGRAMS ACCORDING TO GRADE OR 
220.29  EDUCATION LEVEL.] The service-learning curriculum must 
220.30  accommodate students' grade level or the last completed grade 
220.31  level of the participants not currently enrolled in school.  
220.32  Schools must provide at least the following: 
220.33     (1) for students in grades 7 to 9, an opportunity to learn 
220.34  about service-learning activities and possible occupations; 
220.35     (2) for students in grade 10, an opportunity to apply for 
220.36  service-learning under section 121.88, subdivision 9, and youth 
221.1   apprenticeship programs; and 
221.2      (3) for students in grades 11 and 12 and young people not 
221.3   currently enrolled in school, an opportunity to become involved 
221.4   in community service activities, participate in youth 
221.5   apprenticeship programs, and, depending upon the individual's 
221.6   demonstrated abilities, complete high school or pursue 
221.7   post-secondary coursework. 
221.8      Subd. 4.  [PROGRAMS FOLLOWING YOUTH COMMUNITY SERVICE.] (a) 
221.9   The Minnesota commission on national and community service in 
221.10  cooperation with the governor's workforce development council, 
221.11  the commissioner and the higher education services office, shall 
221.12  provide for those participants who successfully complete youth 
221.13  community service under sections 121.704 to 121.709, the 
221.14  following: 
221.15     (1) for those who have a high school diploma or its 
221.16  equivalent, an opportunity to participate in a youth 
221.17  apprenticeship program at a community or technical college; and 
221.18     (2) for those who are post-secondary students, an 
221.19  opportunity to participate in an educational program that 
221.20  supplements post-secondary courses leading to a degree or a 
221.21  statewide credential of academic and occupational proficiency. 
221.22     (b) Participants who successfully complete a youth 
221.23  community service program under sections 121.704 to 121.710 are 
221.24  eligible to receive an education voucher as provided under 
221.25  section 121.707, subdivision 4.  The voucher recipient may apply 
221.26  the voucher toward the cost of the recipient's tuition and other 
221.27  education-related expenses at a post-secondary school under 
221.28  paragraph (a). 
221.29     (c) The governor's workforce development council, in 
221.30  cooperation with the board of trustees of the Minnesota state 
221.31  colleges and universities, must establish a mechanism to 
221.32  transfer credit earned in a youth apprenticeship program between 
221.33  the technical colleges and other post-secondary institutions 
221.34  offering applied associate degrees. 
221.35     Sec. 28.  [120B.28] [MINNESOTA SCHOOL-TO-WORK STUDENT 
221.36  ORGANIZATION.] 
222.1      Subdivision 1.  [CITATION.] This section may be cited as 
222.2   the "Minnesota school-to-work student organization act." 
222.3      Subd. 2.  [CREATION OF FOUNDATION.] There is created the 
222.4   Minnesota school-to-work student organization foundation.  The 
222.5   purpose of the foundation is to promote vocational student 
222.6   organizations and applied leadership opportunities in Minnesota 
222.7   public schools through public-private partnerships.  The 
222.8   foundation is a nonprofit organization.  The board of directors 
222.9   of the foundation and activities of the foundation are under the 
222.10  direction of the department. 
222.11     Subd. 3.  [BOARD OF DIRECTORS.] The board of directors of 
222.12  the school-to-work student organization foundation consists of: 
222.13     (1) chairs or designees from the board of directors of FFA 
222.14  (formerly Future Farmers of America), Future Leaders of 
222.15  America/Future Homemakers of America, post-secondary agriculture 
222.16  students, home economics related occupations, Health Occupations 
222.17  Student Association, Distributive Education Clubs of America, 
222.18  Delta Upsilon Chi, Secondary Vocational Industrial Clubs of 
222.19  America, Post-secondary Vocational Industrial Clubs of America, 
222.20  Secondary Business Professionals of America, and Post-secondary 
222.21  Business Professionals of America; 
222.22     (2) four members from business and industry appointed by 
222.23  the governor; and 
222.24     (3) five students representing diverse vocational areas, 
222.25  three of whom are appointed by the commissioner of children, 
222.26  families, and learning and two of whom are appointed by the 
222.27  chancellor of the Minnesota state colleges and universities with 
222.28  the advice of the executive councils of each vocational 
222.29  education student organization. 
222.30     Executive directors of vocational education student 
222.31  organizations are ex officio, nonvoting members of the board. 
222.32     Subd. 4.  [FOUNDATION PROGRAMS.] The foundation shall 
222.33  advance applied leadership and intracurricular vocational 
222.34  learning experiences for students.  These may include, but are 
222.35  not limited to: 
222.36     (1) recognition programs and awards for students 
223.1   demonstrating excellence in applied leadership; 
223.2      (2) summer programs for student leadership, career 
223.3   development, applied academics, and mentorship programs with 
223.4   business and industry; 
223.5      (3) recognition programs for teachers, administrators, and 
223.6   others who make outstanding contributions to school-to-work 
223.7   programs; 
223.8      (4) outreach programs to increase the involvement of urban 
223.9   and suburban students; 
223.10     (5) organized challenges requiring cooperation and 
223.11  competition for secondary and post-secondary students; 
223.12     (6) assistance and training to community teams to increase 
223.13  career awareness and empowerment of youth as community leaders; 
223.14  and 
223.15     (7) assessment and activities in order to plan for and 
223.16  implement continuous improvement.  
223.17     To the extent possible, the foundation must make these 
223.18  programs available to students in all parts of the state. 
223.19     Subd. 5.  [POWERS AND DUTIES.] The foundation may: 
223.20     (1) identify and plan common goals and priorities for the 
223.21  various school-to-work student organizations in Minnesota; 
223.22     (2) publish brochures or booklets relating to the purposes 
223.23  of the foundation and collect reasonable fees for the 
223.24  publications; 
223.25     (3) seek and receive public and private money, grants, and 
223.26  in-kind services and goods from nonstate sources for the 
223.27  purposes of the foundation; 
223.28     (4) contract with consultants on behalf of the 
223.29  school-to-work student organizations; and 
223.30     (5) plan, implement, and expend money for awards and other 
223.31  forms of recognition for school-to-work student activities. 
223.32     Subd. 6.  [CONTRACTS.] The foundation board of directors 
223.33  shall review and approve foundation personnel and programming 
223.34  contracts. 
223.35     Subd. 7.  [FOUNDATION STAFF.] The commissioner shall 
223.36  appoint the executive director of the foundation from three 
224.1   candidates nominated and submitted by the foundation board of 
224.2   directors and, as necessary, other staff who shall perform 
224.3   duties and have responsibilities solely related to the 
224.4   foundation.  The employees appointed are not state employees 
224.5   under chapter 43A, but are covered under section 3.736.  The 
224.6   employees may participate in the state health and state 
224.7   insurance plans for employees in unclassified service.  
224.8      The commissioner shall appoint from the office of lifework 
224.9   development a liaison to the foundation board. 
224.10     Subd. 8.  [PUBLIC FUNDING.] The commissioner shall identify 
224.11  and secure appropriate sources of state and federal funding from 
224.12  various state agencies, including, but not limited to, Minnesota 
224.13  state colleges and universities, for the operation and 
224.14  development of school-to-work student organizations. 
224.15     Subd. 9.  [PRIVATE FUNDING.] The foundation must seek 
224.16  private resources to supplement the allocated state and federal 
224.17  money.  Individuals, businesses, and other organizations may 
224.18  contribute to the foundation in any manner specified by the 
224.19  board of directors. 
224.20     Subd. 10.  [REPORT.] The foundation must submit an annual 
224.21  report and assessment to the office of lifework development and 
224.22  to the board of trustees of the Minnesota state colleges and 
224.23  universities. 
224.24     Subd. 11.  [APPROPRIATION.] All the amounts received by the 
224.25  foundation pursuant to this section are annually appropriated to 
224.26  the foundation. 
224.27     Subd. 12.  [STUDENT ORGANIZATIONS.] Individual boards of 
224.28  vocational education student organizations shall continue their 
224.29  operations in accordance with section 126.151 and applicable 
224.30  federal law. 
224.31     Sec. 29.  [120B.29] [SHORT TITLE.] 
224.32     Sections 121.701 to 121.710 shall be cited as the 
224.33  "Minnesota youth works act." 
224.34     Sec. 30.  [120B.30] [PURPOSE.] 
224.35     The purposes of sections 121.701 to 121.710 are to: 
224.36     (1) renew the ethic of civic responsibility in Minnesota; 
225.1      (2) empower youth to improve their life opportunities 
225.2   through literacy, job placement, and other essential skills; 
225.3      (3) empower government to meet its responsibility to 
225.4   prepare young people to be contributing members of society; 
225.5      (4) help meet human, educational, environmental, and public 
225.6   safety needs, particularly those needs relating to poverty; 
225.7      (5) prepare a citizenry that is academically competent, 
225.8   ready for work, and socially responsible; 
225.9      (6) demonstrate the connection between youth and community 
225.10  service, community service and education, and education and 
225.11  meaningful opportunities in the business community; 
225.12     (7) demonstrate the connection between providing 
225.13  opportunities for at-risk youth and reducing crime rates and the 
225.14  social costs of troubled youth; 
225.15     (8) create linkages for a comprehensive youth service and 
225.16  learning program in Minnesota including school age programs, 
225.17  higher education programs, youth work programs, and service 
225.18  corps programs; and 
225.19     (9) coordinate federal and state activities that advance 
225.20  the purposes in this section. 
225.21     Sec. 31.  [120B.31] [DEFINITION.] 
225.22     Subdivision 1.  [APPLICABILITY.] The definitions in this 
225.23  section apply to sections 121.701 to 121.710. 
225.24     Subd. 2.  [ELIGIBLE ORGANIZATION.] "Eligible organization" 
225.25  means: 
225.26     (1) a local unit of government including a statutory or 
225.27  home rule charter city, township, county, or group of two or 
225.28  more contiguous counties; 
225.29     (2) an existing nonprofit organization organized under 
225.30  chapter 317A; 
225.31     (3) an educational institution; 
225.32     (4) a private industry council; 
225.33     (5) a state agency; or 
225.34     (6) a federal agency. 
225.35     Subd. 3.  [FEDERAL LAW.] "Federal law" means Public Law 
225.36  Number 101-610, as amended, or any other federal law or program 
226.1   assisting youth community service, work-based learning, or youth 
226.2   transition from school to work. 
226.3      Subd. 4.  [MENTOR.] "Mentor" means a business person, an 
226.4   adult from the community, or a person who has successfully 
226.5   completed the youth works program who volunteers to establish a 
226.6   one-on-one relationship with a participant in the youth works 
226.7   program to encourage and guide the participant to obtain an 
226.8   education, participate in service and work-related activities, 
226.9   and effectively use postservice benefits. 
226.10     Subd. 5.  [PARTICIPANT.] "Participant" means an individual 
226.11  enrolled in a program that receives assistance under sections 
226.12  121.701 to 121.710. 
226.13     Subd. 6.  [PLACEMENT.] "Placement" means the matching of a 
226.14  participant with a specific project. 
226.15     Subd. 7.  [PROGRAM.] "Program" means an activity carried 
226.16  out with assistance provided under sections 121.701 to 121.710. 
226.17     Subd. 8.  [PROJECT.] "Project" means an activity that 
226.18  results in a specific identifiable service or product that could 
226.19  not be done from the resources of the eligible organization and 
226.20  that does not duplicate the routine services or functions of the 
226.21  eligible organization. 
226.22     Subd. 9.  [COMMISSION.] "Commission" means the Minnesota 
226.23  commission on national and community service established in 
226.24  section 121.703. 
226.25     Subd. 10.  [COUNCIL.] "Council" means the governor's 
226.26  workforce development council. 
226.27     Sec. 32.  [120B.32] [MINNESOTA COMMISSION ON NATIONAL AND 
226.28  COMMUNITY SERVICE.] 
226.29     Subdivision 1.  [CREATION.] The Minnesota commission on 
226.30  national and community service is established to assist the 
226.31  governor and the legislature in implementing sections 121.701 to 
226.32  121.710 and federal law.  Retroactive to the first Monday in 
226.33  January 1994, the terms of the members of the first commission 
226.34  shall be, as nearly as possible, one year for one-third of the 
226.35  members, two years for one-third of the members, and three years 
226.36  for one-third of the members.  The members of the first 
227.1   commission shall determine the length of their terms by lot.  
227.2   Thereafter, the terms of commission members shall be for three 
227.3   years.  Commission members may be reappointed upon the 
227.4   completion of their current term.  The compensation, filling of 
227.5   vacancies, and removal of members are governed by section 
227.6   15.0575.  The commission may accept gifts and contributions from 
227.7   public and private organizations. 
227.8      Subd. 2.  [MEMBERSHIP.] (a) The commission consists of 18 
227.9   voting members.  Voting members shall include the commissioner 
227.10  of children, families, and learning, a representative of the 
227.11  children's cabinet elected by the members of the children's 
227.12  cabinet, and the executive director of the higher education 
227.13  services office. 
227.14     (b) The governor shall appoint 15 additional voting members.
227.15  Eight of the voting members appointed by the governor shall 
227.16  include a representative of public or nonprofit organizations 
227.17  experienced in youth employment and training, organizations 
227.18  promoting adult service and volunteerism, community-based 
227.19  service agencies or organizations, local public or private 
227.20  sector labor unions, local governments, business, a national 
227.21  service program, and Indian tribes.  The remaining seven voting 
227.22  members appointed by the governor shall include an individual 
227.23  with expertise in the educational, training, and development 
227.24  needs of youth, particularly disadvantaged youth; a youth or 
227.25  young adult who is a participant in a higher education-based 
227.26  service-learning program; a disabled individual representing 
227.27  persons with disabilities; a youth who is out-of-school or 
227.28  disadvantaged; an educator of primary or secondary students; an 
227.29  educator from a higher education institution; and an individual 
227.30  between the ages of 16 and 25 who is a participant or supervisor 
227.31  in a youth service program. 
227.32     (c) The governor shall appoint up to five ex officio 
227.33  nonvoting members from among the following agencies or 
227.34  organizations:  the departments of economic security, natural 
227.35  resources, human services, health, corrections, agriculture, 
227.36  public safety, finance, and labor and industry, the Minnesota 
228.1   office of citizenship and volunteer services, the housing 
228.2   finance agency, and Minnesota Technology, Inc.  A representative 
228.3   of the corporation for national and community service shall also 
228.4   serve as an ex officio nonvoting member. 
228.5      (d) Voting and ex officio nonvoting members may appoint 
228.6   designees to act on their behalf.  The number of voting members 
228.7   who are state employees shall not exceed 25 percent. 
228.8      (e) The governor shall ensure that, to the extent possible, 
228.9   the membership of the commission is balanced according to 
228.10  geography, race, ethnicity, age, and gender.  The speaker of the 
228.11  house and the majority leader of the senate shall each appoint 
228.12  two legislators to be nonvoting members of the commission. 
228.13     Subd. 3.  [DUTIES.] (a) The commission must: 
228.14     (1) develop, with the assistance of the governor, the 
228.15  commissioner, and affected state agencies, a comprehensive state 
228.16  plan to provide services under sections 121.701 to 121.710 and 
228.17  federal law; 
228.18     (2) actively pursue public and private funding sources for 
228.19  services, including funding available under federal law; 
228.20     (3) coordinate volunteer service-learning programs within 
228.21  the state; 
228.22     (4) develop, in cooperation with the workforce development 
228.23  council and the commissioner, volunteer service-learning 
228.24  programs, including curriculum, materials, and methods of 
228.25  instruction; 
228.26     (5) work collaboratively with the workforce development 
228.27  council, the commissioner, schools, public and private agencies, 
228.28  for-profit and nonprofit employers, and labor unions to identify 
228.29  mentoring and service-learning opportunities, solicit and 
228.30  recruit participants for these programs, and disseminate 
228.31  information on the programs; 
228.32     (6) administer the youth works grant program under sections 
228.33  121.704 to 121.709, with assistance from the commissioner and 
228.34  the executive director of the higher education services office, 
228.35  including soliciting and approving grant applications from 
228.36  eligible organizations, and administering individual postservice 
229.1   benefits; 
229.2      (7) establish an evaluation plan for programs developed and 
229.3   services provided under sections 121.701 to 121.710; 
229.4      (8) report to the governor, commissioner, and legislature; 
229.5      (9) provide oversight and support for school, campus, and 
229.6   community-based service programs; and 
229.7      (10) administer the federal AmeriCorps program. 
229.8      (b) Nothing in sections 121.701 to 121.710 precludes an 
229.9   organization from independently seeking public or private 
229.10  funding to accomplish purposes similar to those described in 
229.11  paragraph (a). 
229.12     Sec. 33.  [120B.33] [YOUTH WORKS PROGRAM.] 
229.13     The youth works program is established to fulfill the 
229.14  purposes of section 121.701.  The youth works program must 
229.15  supplement existing programs and services.  The program must not 
229.16  displace existing programs and services, existing funding of 
229.17  programs or services, or existing employment and employment 
229.18  opportunities.  No eligible organization may terminate, layoff, 
229.19  or reduce the hours of work of an employee to place or hire a 
229.20  program participant.  No eligible organization may place or hire 
229.21  an individual for a project if an employee is on layoff from the 
229.22  same or a substantially equivalent position. 
229.23     Sec. 34.  [120B.34] [YOUTH WORKS GRANT.] 
229.24     Subdivision 1.  [APPLICATION.] An eligible organization 
229.25  interested in receiving a grant under sections 121.704 to 
229.26  121.709 may prepare and submit to the commission, and beginning 
229.27  January 1, 1997, the council, an application that complies with 
229.28  section 121.706. 
229.29     Subd. 2.  [GRANT AUTHORITY.] The commission and, beginning 
229.30  January 1, 1997, the council must use any state appropriation 
229.31  and any available federal funds, including any grant received 
229.32  under federal law, to award grants to establish programs for 
229.33  youth works meeting the requirements of section 121.706.  At 
229.34  least one grant each must be available for a metropolitan 
229.35  proposal, a rural proposal, and a statewide proposal.  If a 
229.36  portion of the suburban metropolitan area is not included in the 
230.1   metropolitan grant proposal, the statewide grant proposal must 
230.2   incorporate at least one suburban metropolitan area.  In 
230.3   awarding grants, the commission and, beginning January 1, 1997, 
230.4   the council may select at least one residential proposal and one 
230.5   nonresidential proposal, provided the proposals meet or exceed 
230.6   the criteria in section 121.706. 
230.7      Sec. 35.  [120B.35] [GRANT APPLICATIONS.] 
230.8      Subdivision 1.  [APPLICATIONS REQUIRED.] An organization 
230.9   seeking federal or state grant money under sections 121.704 to 
230.10  121.709 shall prepare and submit to the commission and, 
230.11  beginning January 1, 1997, the council an application that meets 
230.12  the requirements of this section.  The commission and, beginning 
230.13  January 1, 1997, the council must develop, and the applying 
230.14  organizations must comply with, the form and manner of the 
230.15  application. 
230.16     Subd. 2.  [APPLICATION CONTENT.] An applicant on its 
230.17  application must: 
230.18     (1) propose a program to provide participants the 
230.19  opportunity to perform community service to meet specific unmet 
230.20  community needs, and participate in classroom, work-based, and 
230.21  service-learning; 
230.22     (2) assess the community's unmet educational, human, 
230.23  environmental, and public safety needs, the resources and 
230.24  programs available for meeting those needs, and how young people 
230.25  participated in assessing community needs; 
230.26     (3) describe the educational component of the program, 
230.27  including classroom hours per week, classroom time for 
230.28  participants to reflect on the program experience, and 
230.29  anticipated academic outcomes related to the service experience; 
230.30     (4) describe the work to be performed, the ratio of youth 
230.31  participants to crew leaders and mentors, and the expectations 
230.32  and qualifications for crew leaders and mentors; 
230.33     (5) describe local funds or resources available to meet the 
230.34  match requirements of section 121.709; 
230.35     (6) describe any funds available for the program from 
230.36  sources other than the requested grant; 
231.1      (7) describe any agreements with local businesses to 
231.2   provide participants with work-learning opportunities and 
231.3   mentors; 
231.4      (8) describe any agreement with local post-secondary 
231.5   educational institutions to offer participants course credits 
231.6   for their community service-learning experience; 
231.7      (9) describe any agreement with a local high school or an 
231.8   alternative learning center to provide remedial education, 
231.9   credit for community service work and work-based learning, or 
231.10  graduate equivalency degrees; 
231.11     (10) describe any pay for service or other program delivery 
231.12  mechanism that will provide reimbursement for benefits conferred 
231.13  or recover costs of services participants perform; 
231.14     (11) describe how local resources will be used to provide 
231.15  support and assistance for participants to encourage them to 
231.16  continue with the program, fulfill the terms of the contract, 
231.17  and remain eligible for any postservice benefit; 
231.18     (12) describe the arbitration mechanism for dispute 
231.19  resolution required under section 121.707, subdivision 2; 
231.20     (13) describe involvement of community leaders in 
231.21  developing broad-based support for the program; 
231.22     (14) describe the consultation and sign-off process to be 
231.23  used with any local labor organization representing employees in 
231.24  the area engaged in work similar to that proposed for the 
231.25  program to ensure that no current employees or available 
231.26  employment positions will be displaced by program participants; 
231.27     (15) certify to the commission and, beginning January 1, 
231.28  1997, the council, and to any certified bargaining 
231.29  representatives representing employees of the applying 
231.30  organization that the project will not decrease employment 
231.31  opportunities that would be available without the project; will 
231.32  not displace current employees including any partial 
231.33  displacement in the form of reduced hours of work other than 
231.34  overtime, wages, employment benefits, or regular seasonal work; 
231.35  will not impair existing labor agreements; and will not result 
231.36  in the substitution of project funding for preexisting funds or 
232.1   sources of funds for ongoing work; 
232.2      (16) describe the length of the required service period, 
232.3   which may not be less than six months or more than two years, a 
232.4   method to incorporate a participant's readiness to advance or 
232.5   need for postservice financial assistance into individual 
232.6   service requirements, and any opportunity for participating part 
232.7   time or in another program; 
232.8      (17) describe a program evaluation plan that contains 
232.9   cost-effectiveness measures, measures of participant success 
232.10  including educational accomplishments, job placements, community 
232.11  contributions, and ongoing volunteer activities, outcome 
232.12  measures based on a preprogram and postprogram survey of 
232.13  community rates of arrest, incarceration, teenage pregnancy, and 
232.14  other indicators of youth in trouble, and a list of local 
232.15  resources dedicated to reducing these rates; 
232.16     (18) describe a three-year financial plan for maintaining 
232.17  the program; 
232.18     (19) describe the role of local youth in developing all 
232.19  aspects of the grant proposal; and 
232.20     (20) describe the process by which the local private 
232.21  industry council participated in, and reviewed the grant 
232.22  application. 
232.23     Sec. 36.  [120B.36] [PROGRAM PROVISIONS.] 
232.24     Subdivision 1.  [PARTICIPANT ELIGIBILITY.] (a) An 
232.25  individual is eligible to participate in full-time youth 
232.26  community service if the individual: 
232.27     (1) is at least 17 years old; 
232.28     (2) is a citizen of the United States or lawfully admitted 
232.29  for permanent residency; 
232.30     (3) is applying for service and has received a high school 
232.31  diploma or its equivalent, or agrees to attain a high school 
232.32  diploma or its equivalent while participating in the program; 
232.33  and 
232.34     (4) agrees to act as an alumni volunteer or an alumni 
232.35  mentor upon successfully completing the program and postprogram 
232.36  education. 
233.1      (b) An individual is eligible to participate in part-time 
233.2   youth community service if the individual is at least 15 years 
233.3   old and meets the requirements under paragraph (a), clauses (2) 
233.4   to (4). 
233.5      Subd. 2.  [TERMS OF SERVICE.] (a) A participant shall agree 
233.6   to perform community service for the period required unless the 
233.7   participant is unable to complete the terms of service for the 
233.8   reason provided in paragraph (b). 
233.9      An agreement to perform community service must be in the 
233.10  form of a written contract between the participant and the 
233.11  grantee organization.  Terms of the contract must include a 
233.12  length of service between six months and two years, the amount 
233.13  of the postservice benefit earned upon completion of the 
233.14  contracted length of service, the participant's education goals 
233.15  and commitment, the anticipated date of completion, dismissal 
233.16  for cause, including failure to fully participate in the 
233.17  education component, and the exclusive right to challenge a 
233.18  dismissal for cause through binding arbitration.  The arbitrator 
233.19  must be chosen jointly by the grantee organization and the 
233.20  participant from the community or, if agreement cannot be 
233.21  reached, an arbitrator must be determined from a list of 
233.22  arbitrators provided by the American Arbitration Association.  
233.23  The sole remedy available to the participant through arbitration 
233.24  is reinstatement to the program and eligibility for postservice 
233.25  benefits.  The parent or guardian of a minor shall consent in 
233.26  writing to the contract between the participant and the grantee 
233.27  organization. 
233.28     (b) If the grantee organization releases a participant from 
233.29  completing a term of service in a program receiving assistance 
233.30  under sections 121.704 to 121.709 for compelling personal 
233.31  circumstances as demonstrated by the participant, or if the 
233.32  program in which the participant serves does not receive 
233.33  continued funding for any reason, the grantee organization may 
233.34  provide the participant with that portion of the financial 
233.35  assistance described in subdivision 3 that corresponds to the 
233.36  quantity of the service obligation completed by the individual. 
234.1      If the grantee organization terminates a participant for 
234.2   cause or a participant resigns without demonstrating compelling 
234.3   personal circumstances under this section, no postservice 
234.4   benefit under subdivision 3 may be paid. 
234.5      (c) A participant performing part-time service under 
234.6   sections 121.701 to 121.710 shall serve at least two weekends 
234.7   each month and two weeks during the year.  A part-time 
234.8   participant shall serve at least 900 hours during a period of 
234.9   not more than two years, or three years if enrolled in an 
234.10  institution of higher education.  A participant performing 
234.11  full-time service under sections 121.701 to 121.710 shall serve 
234.12  at least 1,700 hours during a period of not less than nine 
234.13  months, or more than one year. 
234.14     (d) Notwithstanding any other law to the contrary, for 
234.15  purposes of tort liability under sections 3.732 and 3.736, while 
234.16  participating in a program a participant is an employee of the 
234.17  state. 
234.18     (e) Participants performing community service in a program 
234.19  are not public employees for purposes of chapter 43A, 179A, 197, 
234.20  353, or any other law governing hiring or discharging of public 
234.21  employees. 
234.22     Subd. 3.  [POSTSERVICE BENEFIT.] (a) Each eligible 
234.23  organization must agree to provide to every participant who 
234.24  fulfills the terms of a contract under section 121.707, 
234.25  subdivision 2, a nontransferable postservice benefit.  The 
234.26  benefit must be not less than $4,725 per year of full-time 
234.27  service or prorated for part-time service or for partial service 
234.28  of at least 900 hours.  Upon signing a contract under section 
234.29  121.707, subdivision 2, each eligible organization must deposit 
234.30  funds to cover the full amount of postservice benefits 
234.31  obligated, except for national education awards that are 
234.32  deposited in the national service trust fund.  Funds encumbered 
234.33  in fiscal years 1994 and 1995 for postservice benefits must be 
234.34  available until the participants for whom the funds were 
234.35  encumbered are no longer eligible to draw benefits.  
234.36     (b) Nothing in this subdivision prevents a grantee 
235.1   organization from using funds from nonfederal or nonstate 
235.2   sources to increase the value of postservice benefits above the 
235.3   value described in paragraph (a). 
235.4      (c) The higher education services office must establish an 
235.5   account for depositing funds for postservice benefits received 
235.6   from eligible organizations.  If a participant does not complete 
235.7   the term of service or, upon successful completion of the 
235.8   program, does not use a postservice benefit according to 
235.9   subdivision 4 within seven years, the amount of the postservice 
235.10  benefit must be refunded to the eligible organization or, at the 
235.11  organization's discretion, dedicated to another eligible 
235.12  participant.  Interest earned on funds deposited in the 
235.13  postservice benefit account is appropriated to the higher 
235.14  education services office for the costs of administering the 
235.15  postservice benefits accounts.  
235.16     (d) The state must provide an additional postservice 
235.17  benefit to any participant who successfully completes the 
235.18  program.  The benefit must be a credit of five points to be 
235.19  added to the competitive open rating of a participant who 
235.20  obtains a passing grade on a civil service examination under 
235.21  chapter 43A.  The benefit is available for five years after 
235.22  completing the community service. 
235.23     Subd. 4.  [USES OF POSTSERVICE BENEFITS.] (a) A postservice 
235.24  benefit for a participant provided under subdivision 3, 
235.25  paragraph (a), (b), or (c), must be available for seven years 
235.26  after completing the program and may only be used for: 
235.27     (1) paying a student loan; 
235.28     (2) costs of attending an institution of higher education; 
235.29  or 
235.30     (3) expenses incurred by a student in an approved youth 
235.31  apprenticeship program under chapter 126B, or in a registered 
235.32  apprenticeship program approved by the department of labor and 
235.33  industry. 
235.34  Financial assistance provided under this subdivision must be in 
235.35  the form of vendor payments whenever possible.  Any postservice 
235.36  benefits provided by federal funds or vouchers may be used as a 
236.1   downpayment on, or closing costs for, purchasing a first home. 
236.2      (b) Postservice benefits are to be used to develop skills 
236.3   required in occupations where numbers of jobs are likely to 
236.4   increase.  The commission, in consultation with the workforce 
236.5   development council, and beginning January 1, 1997, the 
236.6   workforce development council, must determine how the benefits 
236.7   may be used in order to best prepare participants with skills 
236.8   that build on their service-learning and equip them for 
236.9   meaningful employment. 
236.10     (c) The postservice benefit must not be included in 
236.11  determining financial need when establishing eligibility or 
236.12  award amounts for financial assistance programs under chapter 
236.13  136A. 
236.14     Subd. 5.  [LIVING ALLOWANCE.] (a) A participant in a 
236.15  full-time community service program shall receive a monthly 
236.16  stipend of not less than $500.  An eligible organization may 
236.17  provide participants with additional amounts from nonstate 
236.18  sources.  The amount of the living allowance may be prorated for 
236.19  part-time participants. 
236.20     (b) Nothing in this subdivision requires an existing 
236.21  program to decrease any stipend, salary, or living allowance 
236.22  provided to a participant under the program. 
236.23     (c) In addition to the living allowance provided under 
236.24  paragraph (a), a grantee organization shall provide health and 
236.25  child care coverage to each participant in a full-time youth 
236.26  works program who does not otherwise have access to health or 
236.27  child care coverage.  The state must include the cost of group 
236.28  health and child care coverage in the grant to the eligible 
236.29  organization. 
236.30     Subd. 6.  [PROGRAM TRAINING.] (a) The commission and, 
236.31  beginning January 1, 1997, the council must, within available 
236.32  resources, ensure an opportunity for each participant to have 
236.33  three weeks of training in a residential setting.  If offered, 
236.34  each training session must: 
236.35     (1) orient each participant in the nature, philosophy, and 
236.36  purpose of the program; 
237.1      (2) build an ethic of community service through general 
237.2   community service training; and 
237.3      (3) provide additional training as it determines necessary. 
237.4      (b) Each grantee organization shall also train participants 
237.5   in skills relevant to the community service opportunity. 
237.6      Subd. 7.  [TRAINING AND EDUCATION REQUIREMENTS.] Each 
237.7   grantee organization must assess the educational level of each 
237.8   entering participant.  Each grantee shall work to enhance the 
237.9   educational skills of each participant.  The commission and, 
237.10  beginning January 1, 1997, the council may coordinate or 
237.11  contract with educational institutions or other providers for 
237.12  educational services and evaluation.  All grantees shall give 
237.13  priority to educating and training participants who do not have 
237.14  a high school diploma or its equivalent, or who cannot afford 
237.15  post-secondary training and education. 
237.16     Sec. 37.  [120B.37] [PRIORITY.] 
237.17     The commission and, beginning January 1, 1997, the council 
237.18  must give priority to an eligible organization proposing a 
237.19  program that meets the goals of sections 121.704 to 121.707, and 
237.20  that: 
237.21     (1) involves youth in a meaningful way in all stages of the 
237.22  program, including assessing community needs, preparing the 
237.23  application, and assuming postservice leadership and mentoring 
237.24  responsibilities; 
237.25     (2) serves a community with significant unmet needs; 
237.26     (3) provides an approach that is most likely to reduce 
237.27  arrest rates, incarceration rates, teenage pregnancy, and other 
237.28  indicators of troubled youth; 
237.29     (4) builds linkages with existing, successful programs; and 
237.30     (5) can be operational quickly. 
237.31     Sec. 38.  [120B.38] [MATCH REQUIREMENTS.] 
237.32     Youth works grant funds must be used for the living 
237.33  allowance, cost of employer taxes under sections 3111 and 3301 
237.34  of the Internal Revenue Code of 1986, workers' compensation 
237.35  coverage, and health benefits for each program participant.  
237.36  Youthworks grant funds may also be used to supplement applicant 
238.1   resources to fund postservice benefits for program participants. 
238.2   Applicant resources, from sources and in a form determined by 
238.3   the commission and, beginning January 1, 1997, the council, must 
238.4   be used to provide for all other program costs, including the 
238.5   portion of the applicant's obligation for postservice benefits 
238.6   that is not covered by state or federal grant funds and such 
238.7   costs as supplies, materials, transportation, and salaries and 
238.8   benefits of those staff directly involved in the operation, 
238.9   internal monitoring, and evaluation of the program.  
238.10  Administrative expenses must not exceed five percent of total 
238.11  program costs.  
238.12     Sec. 39.  [120B.39] [EVALUATION AND REPORTING 
238.13  REQUIREMENTS.] 
238.14     Subdivision 1.  [GRANTEE ORGANIZATIONS.] Each grantee 
238.15  organization shall report to the commission and, beginning 
238.16  January 1, 1997, the council at the time and on the matters 
238.17  requested by the commission and, beginning January 1, 1997, the 
238.18  council. 
238.19     Subd. 2.  [INTERIM REPORT.] The commission and, beginning 
238.20  January 1, 1997, the council must report semiannually to the 
238.21  legislature with interim recommendations to change the program. 
238.22     Subd. 3.  [FINAL REPORT.] The commission and, beginning 
238.23  January 1, 1997, the council must present a final report to the 
238.24  legislature by January 1, 1998, summarizing grantee evaluations, 
238.25  reporting on individual participants and participating grantee 
238.26  organizations, and recommending any changes to improve or expand 
238.27  the program. 
238.28     Sec. 40.  [120B.40] [SCHOOL ENRICHMENT PARTNERSHIP 
238.29  PROGRAM.] 
238.30     Subdivision 1.  [ESTABLISHMENT.] The school enrichment 
238.31  partnership program is established.  The purpose of the program 
238.32  is to encourage districts to expand the involvement of the 
238.33  private sector in the delivery of academic programs.  The 
238.34  program will provide matching state funds for those provided by 
238.35  the private sector. 
238.36     Subd. 2.  [REVENUE ELIGIBILITY.] A district or group of 
239.1   districts is eligible to receive state aid under this program.  
239.2   Districts may enter into joint agreements to provide programs or 
239.3   make expenditures under this section.  The limitations under 
239.4   this subdivision apply to these programs or expenditures as if 
239.5   they were operated by a single district.  A district may receive 
239.6   $1 of state aid for each $2 raised from the private sector.  The 
239.7   private match must be in the form of cash.  Specific types of 
239.8   noncash support may be considered for the private match.  State 
239.9   aid is limited to the lesser of $75,000 or $10 per pupil unit 
239.10  per district. 
239.11     Subd. 3.  [REVENUE MANAGEMENT.] The use of the state and 
239.12  private funds provided under this section is under the general 
239.13  control of the board.  The board may establish, without using 
239.14  state funds or public employees, a separate foundation to 
239.15  directly manage the funds.  The private funds must be used to 
239.16  acquire instructional or noninstructional academic materials of 
239.17  a capital nature including, but not limited to, textbooks, 
239.18  globes, maps, and other academic material.  The funds may not be 
239.19  used for salaries or other employee benefits. 
239.20     Subd. 4.  [PROCEDURES; REPORT.] The Minnesota academic 
239.21  excellence foundation, under the direction of the commissioner 
239.22  must establish application forms, guidelines, procedures, and 
239.23  timelines for the distribution of state aid.  The commissioner 
239.24  may require reporting necessary to evaluate the program.  
239.25  Measures of success will include numbers of partnerships and 
239.26  funds raised; numbers of school foundations formed; and 
239.27  demonstrated linkages of partnerships to improved instructional 
239.28  delivery resulting in increased student learning. 
239.29     Subd. 5.  [RESULTS-ORIENTED CHARTER SCHOOLS.] 
239.30  Notwithstanding section 124.248, subdivision 4, paragraph (b), a 
239.31  results-oriented charter school is eligible to participate in 
239.32  the program under this section as if it were a district. 
239.33     Sec. 41.  [120B.41] [ADULT BASIC EDUCATION.] 
239.34     Subdivision 1.  [PROGRAM REQUIREMENTS.] An adult basic 
239.35  education program is a day or evening program offered by a 
239.36  district that is for people over 16 years of age through the 
240.1   1999-2000 school year and over 18 years of age beginning with 
240.2   the 2000-2001 school year who do not attend an elementary or 
240.3   secondary school.  The program offers academic instruction 
240.4   necessary to earn a high school diploma or equivalency 
240.5   certificate.  Tuition and fees may not be charged to a learner 
240.6   for instruction paid under this section, except for a security 
240.7   deposit to assure return of materials, supplies, and equipment. 
240.8      Subd. 2.  [PROGRAM APPROVAL.] (a) To receive aid under this 
240.9   section, a district, a consortium of districts, or a private 
240.10  nonprofit organization must submit an application by June 1 
240.11  describing the program, on a form provided by the department.  
240.12  The program must be approved by the commissioner according to 
240.13  the following criteria:  
240.14     (1) how the needs of different levels of learning will be 
240.15  met; 
240.16     (2) for continuing programs, an evaluation of results; 
240.17     (3) anticipated number and education level of participants; 
240.18     (4) coordination with other resources and services; 
240.19     (5) participation in a consortium, if any, and money 
240.20  available from other participants; 
240.21     (6) management and program design; 
240.22     (7) volunteer training and use of volunteers; 
240.23     (8) staff development services; 
240.24     (9) program sites and schedules; and 
240.25     (10) program expenditures that qualify for aid.  
240.26     (b) The commissioner may grant adult basic education funds 
240.27  to a private, nonprofit organization to provide services that 
240.28  are not offered by a district or that are supplemental to a 
240.29  district's program.  The program provided under this provision 
240.30  must be approved and funded according to the same criteria used 
240.31  for district programs. 
240.32     (c) Adult basic education programs may be approved under 
240.33  this subdivision for up to five years.  Five-year program 
240.34  approval must be granted to an applicant who has demonstrated 
240.35  the capacity to: 
240.36     (1) offer comprehensive learning opportunities and support 
241.1   service choices appropriate for and accessible to adults at all 
241.2   basic skill need levels; 
241.3      (2) provide a participatory and experiential learning 
241.4   approach based on the strengths, interests, and needs of each 
241.5   adult, that enables adults with basic skill needs to: 
241.6      (i) identify, plan for, and evaluate their own progress 
241.7   toward achieving their defined educational and occupational 
241.8   goals; 
241.9      (ii) master the basic academic reading, writing, and 
241.10  computational skills, as well as the problem-solving, decision 
241.11  making, interpersonal effectiveness, and other life and learning 
241.12  skills they need to function effectively in a changing society; 
241.13     (iii) locate and be able to use the health, governmental, 
241.14  and social services and resources they need to improve their own 
241.15  and their families' lives; and 
241.16     (iv) continue their education, if they desire, to at least 
241.17  the level of secondary school completion, with the ability to 
241.18  secure and benefit from continuing education that will enable 
241.19  them to become more employable, productive, and responsible 
241.20  citizens; 
241.21     (3) plan, coordinate, and develop cooperative agreements 
241.22  with community resources to address the needs that the adults 
241.23  have for support services, such as transportation, flexible 
241.24  course scheduling, convenient class locations, and child care; 
241.25     (4) collaborate with business, industry, labor unions, and 
241.26  employment-training agencies, as well as with family and 
241.27  occupational education providers, to arrange for resources and 
241.28  services through which adults can attain economic 
241.29  self-sufficiency; 
241.30     (5) provide sensitive and well trained adult education 
241.31  personnel who participate in local, regional, and statewide 
241.32  adult basic education staff development events to master 
241.33  effective adult learning and teaching techniques; 
241.34     (6) participate in regional adult basic education peer 
241.35  program reviews and evaluations; and 
241.36     (7) submit accurate and timely performance and fiscal 
242.1   reports. 
242.2      Subd. 3.  [ACCOUNTS; REVENUE; AID.] Each district, group of 
242.3   districts, or private nonprofit organization providing adult 
242.4   basic education programs must establish and maintain accounts 
242.5   separate from all other district accounts for the receipt and 
242.6   disbursement of all funds related to these programs.  All 
242.7   revenue received pursuant to this section must be utilized 
242.8   solely for the purposes of adult basic education programs.  
242.9   Federal and state aid must not equal more than 100 percent of 
242.10  the actual cost of providing these programs. 
242.11     Sec. 42.  [120B.42] [ADULT BASIC EDUCATION AID.] 
242.12     Subdivision 1.  [FULL-TIME EQUIVALENT.] In this section 
242.13  "full-time equivalent" means 408 contact hours for a student at 
242.14  the adult secondary instructional level and 240 contact hours 
242.15  for a student at a lower instructional level.  "Full-time 
242.16  equivalent" for an English as a second language student means 
242.17  240 contact hours. 
242.18     Subd. 2.  [PROGRAMS FUNDED.] Adult basic education programs 
242.19  established under section 124.26 and approved by the 
242.20  commissioner are eligible for revenue under this section. 
242.21     Subd. 3.  [AID.] Adult basic education aid for each 
242.22  approved program equals 65 percent of the general education 
242.23  formula allowance times the number of full-time equivalent 
242.24  students in its adult basic education program. 
242.25     Subd. 4.  [LEVY.] A district with an eligible program may 
242.26  levy an amount not to exceed the amount raised by .12 percent 
242.27  times the adjusted tax capacity of the district for the 
242.28  preceding year. 
242.29     Subd. 5.  [REVENUE.] Adult basic education revenue is equal 
242.30  to the sum of an approved program's adult basic education aid 
242.31  and its adult basic education levy. 
242.32     Subd. 6.  [AID GUARANTEE.] (a) For fiscal year 1994, any 
242.33  adult basic education program that receives less state aid under 
242.34  subdivisions 3 and 7 than from the aid formula for fiscal year 
242.35  1992 must receive the amount of aid it received in fiscal year 
242.36  1992. 
243.1      (b) For 1995 and later fiscal years, an adult basic 
243.2   education program that receives aid must receive at least the 
243.3   amount of aid it received in fiscal year 1992 under subdivisions 
243.4   3 and 7, plus aid equal to the amount of revenue that would have 
243.5   been raised for taxes payable in 1994 under Minnesota Statutes 
243.6   1992, section 124.2601, subdivision 4, minus the amount raised 
243.7   under subdivision 4. 
243.8      Subd. 7.  [PRORATION.] If the total appropriation for adult 
243.9   basic education aid is insufficient to pay all approved programs 
243.10  the full amount of aid earned, the department must 
243.11  proportionately reduce each approved program's aid. 
243.12     Sec. 43.  [120B.43] [GED TEST FEES.] 
243.13     The commissioner shall pay 60 percent of the fee that is 
243.14  charged to an eligible individual for the full battery of a GED 
243.15  test, but not more than $20 for an eligible individual. 
243.16     Sec. 44.  [120B.44] [ADULT HIGH SCHOOL GRADUATION AID.] 
243.17     Subdivision 1.  [AID ELIGIBILITY.] For fiscal year 1996, 
243.18  adult high school graduation aid for eligible pupils age 21 or 
243.19  over, equals 65 percent of the general education formula 
243.20  allowance times 1.30 times the average daily membership under 
243.21  section 124.17, subdivision 2e.  For 1997 and later fiscal 
243.22  years, adult high school graduation aid per eligible pupil 
243.23  equals the amount established by the commissioner, in 
243.24  consultation with the commissioner of finance, based on the 
243.25  appropriation for this program.  Adult high school graduation 
243.26  aid must be paid in addition to any other aid to the district.  
243.27  Pupils age 21 or over may not be counted by the district for any 
243.28  purpose other than adult high school graduation aid. 
243.29     Subd. 2.  [AID FOLLOWS PUPIL.] Adult high school graduation 
243.30  aid accrues to the account and the fund of the eligible 
243.31  programs, under section 126.22, subdivision 3, that serve adult 
243.32  diploma students. 
243.33     Sec. 45.  [120B.45] [LEARNING READINESS AID.] 
243.34     Subdivision 1.  [PROGRAM REVIEW AND APPROVAL.] By February 
243.35  15, 1992, for the 1991-1992 school year or by January 1 of 
243.36  subsequent school years, a district must submit to the 
244.1   commissioners of children, families, and learning, health, human 
244.2   services, and economic security:  
244.3      (1) a description of the services to be provided; 
244.4      (2) a plan to ensure children at greatest risk receive 
244.5   appropriate services; 
244.6      (3) a description of procedures and methods to be used to 
244.7   coordinate public and private resources to maximize use of 
244.8   existing community resources, including school districts, health 
244.9   care facilities, government agencies, neighborhood 
244.10  organizations, and other resources knowledgeable in early 
244.11  childhood development; 
244.12     (4) comments about the district's proposed program by the 
244.13  advisory council required by section 121.831, subdivision 7; and 
244.14     (5) agreements with all participating service providers.  
244.15     Each commissioner may review and comment on the program, 
244.16  and make recommendations to the commissioner of children, 
244.17  families, and learning, within 30 days of receiving the plan. 
244.18     Subd. 2.  [AMOUNT OF AID.] A district is eligible to 
244.19  receive learning readiness aid if the program plan as required 
244.20  by subdivision 1 has been approved by the commissioner.  The aid 
244.21  is equal to: 
244.22     (1) $200 for fiscal year 1992 and $300 for fiscal year 1993 
244.23  times the number of eligible four-year old children residing in 
244.24  the district, as determined according to section 124.2711, 
244.25  subdivision 2; plus 
244.26     (2) $100 for fiscal year 1992 and $300 for fiscal year 1993 
244.27  times the result of; 
244.28     (3) the ratio of the number of pupils enrolled in the 
244.29  district from families eligible for the free or reduced school 
244.30  lunch program to the total number of pupils enrolled in the 
244.31  district; times 
244.32     (4) the number of children in clause (1). 
244.33     For fiscal year 1994 and thereafter, a district must 
244.34  receive learning readiness aid equal to: 
244.35     (1) the number of eligible four-year old children in the 
244.36  district times the ratio of 50 percent of the total learning 
245.1   readiness aid for that year to the total number of eligible 
245.2   four-year old children reported to the commissioner for that 
245.3   year; plus 
245.4      (2) the number of participating eligible children times the 
245.5   ratio of 15 percent of the total learning readiness aid for that 
245.6   year to the total number of participating eligible children for 
245.7   that year; plus 
245.8      (3) the number of pupils enrolled in the school district 
245.9   from families eligible for the free or reduced school lunch 
245.10  program times the ratio of 35 percent of the total learning 
245.11  readiness aid for that year to the total number of pupils in the 
245.12  state from families eligible for the free or reduced school 
245.13  lunch program. 
245.14     Subd. 3.  [USE OF AID.] Learning readiness aid shall be 
245.15  used only to provide a learning readiness program and may be 
245.16  used to provide transportation.  Not more than five percent of 
245.17  the aid may be used for the cost of administering the program.  
245.18  Aid must be used to supplement and not supplant local, state, 
245.19  and federal funding.  Aid may not be used for instruction and 
245.20  services required under section 120.17.  Aid may not be used to 
245.21  purchase land or construct buildings, but may be used to lease 
245.22  or renovate existing buildings. 
245.23     Subd. 4.  [SEPARATE ACCOUNTS.] The district must deposit 
245.24  learning readiness aid in a separate account within the 
245.25  community education fund.  
245.26     Sec. 46.  [120B.46] [EARLY CHILDHOOD FAMILY EDUCATION 
245.27  REVENUE.] 
245.28     Subdivision 1.  [REVENUE.] The revenue for early childhood 
245.29  family education programs for a school district equals $101.25 
245.30  for 1993 and later fiscal years times the greater of: 
245.31     (1) 150; or 
245.32     (2) the number of people under five years of age residing 
245.33  in the district on October 1 of the previous school year. 
245.34     Subd. 2.  [POPULATION.] For the purposes of subdivision 1, 
245.35  data reported to the department may be used to determine the 
245.36  number of people under five years of age residing in the 
246.1   district.  The commissioner, with the assistance of the state 
246.2   demographer, shall review the number reported by any district 
246.3   operating an early childhood family education program.  If 
246.4   requested, the district shall submit to the commissioner an 
246.5   explanation of its methods and other information necessary to 
246.6   document accuracy.  If the commissioner determines that the 
246.7   district has not provided sufficient documentation of accuracy, 
246.8   the commissioner may request the state demographer to prepare an 
246.9   estimate of the number of people under five years of age 
246.10  residing in the district and may use this estimate for the 
246.11  purposes of subdivision 1.  
246.12     Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 
246.13  obtain early childhood family education revenue, a district may 
246.14  levy an amount equal to the tax rate of .609 percent times the 
246.15  adjusted tax capacity of the district for the year preceding the 
246.16  year the levy is certified.  If the amount of the early 
246.17  childhood family education levy would exceed the early childhood 
246.18  family education revenue, the early childhood family education 
246.19  levy must equal the early childhood family education revenue. 
246.20     Subd. 4.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] If a 
246.21  district complies with the provisions of section 121.882, it 
246.22  must receive early childhood family education aid equal to the 
246.23  difference between the early childhood family education revenue 
246.24  and the early childhood family education levy.  If the district 
246.25  does not levy the entire amount permitted, the early childhood 
246.26  family education aid must be reduced in proportion to the actual 
246.27  amount levied. 
246.28     Subd. 5.  [USE OF REVENUE RESTRICTED.] Early childhood 
246.29  family education revenue may be used only for early childhood 
246.30  family education programs.  Not more than five percent of early 
246.31  childhood family education revenue may be used to administer 
246.32  early childhood family education programs.  The increase in 
246.33  revenue for fiscal years 1992 and 1993 must be used to: 
246.34     (1) increase participation of families so that the total 
246.35  participation in early childhood family education programs in 
246.36  the district more nearly reflects the demographic, racial, 
247.1   cultural, and ethnic diversity of the district; and 
247.2      (2) provide programs for families who, because of poverty 
247.3   and other barriers to learning, may need programs designed to 
247.4   meet their needs. 
247.5      Subd. 6.  [HOME VISITING LEVY.] A district that enters into 
247.6   a collaborative agreement to provide education services and 
247.7   social services to families with young children may levy an 
247.8   amount equal to $1.60 times the number of people under five 
247.9   years of age residing in the district on September 1 of the last 
247.10  school year.  Levy revenue under this subdivision must not be 
247.11  included as revenue under subdivision 1.  The revenue must be 
247.12  used for home visiting programs under section 121.882, 
247.13  subdivision 2b. 
247.14     Subd. 7.  [RESERVE ACCOUNT.] Early childhood family 
247.15  education revenue, which includes aids, levies, fees, grants, 
247.16  and all other revenues received by the district for early 
247.17  childhood family education programs, must be maintained in a 
247.18  reserve account within the community service fund.  
247.19     Sec. 47.  [120B.47] [ECFE REVENUE.] 
247.20     In addition to the revenue in section 124.2711, subdivision 
247.21  1, in fiscal year 1994 a district is eligible for aid equal to 
247.22  $1.60 times the greater of 150 or the number of people under 
247.23  five years of age residing in the district on September 1 of the 
247.24  last school year.  This amount may be used only for in-service 
247.25  education for early childhood family education parent educators, 
247.26  child educators, and home visitors for violence prevention 
247.27  programs and for home visiting programs under section 126.77.  A 
247.28  district that uses revenue under this paragraph for home 
247.29  visiting programs must provide home visiting program services 
247.30  through its early childhood family education program or shall 
247.31  contract with a public or nonprofit organization to provide such 
247.32  services.  A district may establish a new home visiting program 
247.33  only where no existing, reasonably accessible home visiting 
247.34  program meets the program requirements in section 126.77. 
247.35     Sec. 48.  [120B.48] [COMMUNITY EDUCATION REVENUE.] 
247.36     Subdivision 1.  [TOTAL COMMUNITY EDUCATION REVENUE.] 
248.1   Community education revenue equals the sum of a district's 
248.2   general community education revenue and youth service program 
248.3   revenue.  
248.4      Subd. 2.  [ELIGIBILITY.] To be eligible for community 
248.5   education revenue, a district must operate a community education 
248.6   program that complies with section 121.88. 
248.7      Subd. 3.  [GENERAL COMMUNITY EDUCATION REVENUE.] The 
248.8   general community education revenue for a district equals $5.95 
248.9   times the greater of 1,335 or the population of the district.  
248.10  The population of the district is determined according to 
248.11  section 275.14.  
248.12     Subd. 4.  [YOUTH SERVICE REVENUE.] Youth service program 
248.13  revenue is available to a district that has implemented a youth 
248.14  development plan and a youth service program.  Youth service 
248.15  revenue equals $1 times the greater of 1,335 or the population 
248.16  of the district. 
248.17     Subd. 5.  [COMMUNITY EDUCATION LEVY.] To obtain community 
248.18  education revenue, a district may levy the amount raised by a 
248.19  tax rate of 1.1 percent times the adjusted net tax capacity of 
248.20  the district.  If the amount of the community education levy 
248.21  would exceed the community education revenue, the community 
248.22  education levy shall be determined according to subdivision 6.  
248.23     Subd. 6.  [COMMUNITY EDUCATION LEVY; DISTRICTS OFF THE 
248.24  FORMULA.] If the amount of the community education levy for a 
248.25  district exceeds the district's community education revenue, the 
248.26  amount of the community education levy is limited to the sum of: 
248.27     (1) the district's community education revenue according to 
248.28  subdivision 1; plus 
248.29     (2) the amount of the aid reduction for the same fiscal 
248.30  year according to subdivision 8.  
248.31     For purposes of statutory cross-reference, a levy made 
248.32  according to this subdivision is the levy made according to 
248.33  subdivision 6.  
248.34     Subd. 7.  [COMMUNITY EDUCATION LEVY EQUITY.] (a) If a 
248.35  district's community education levy for a fiscal year is 
248.36  determined according to subdivision 8, an amount must be 
249.1   deducted from state aid authorized in this chapter receivable 
249.2   for the same fiscal year, and from state payments authorized in 
249.3   chapter 273 and receivable for the same fiscal year, the amount 
249.4   of the deduction equals the difference between:  
249.5      (1) the district's community education revenue according to 
249.6   subdivision 1; and 
249.7      (2) the district's maximum community education levy 
249.8   according to subdivision 6.  
249.9      (b) The amount of the deduction in any fiscal year must not 
249.10  exceed the amount of state payments authorized in chapters 124 
249.11  and 273 and receivable for the same fiscal year in the 
249.12  district's community service fund. 
249.13     Subd. 8.  [COMMUNITY EDUCATION AID.] A district's community 
249.14  education aid is the difference between its community education 
249.15  revenue and the community education levy.  If the district does 
249.16  not levy the entire amount permitted, the community education 
249.17  aid must be reduced in proportion to the actual amount levied. 
249.18     Subd. 9.  [USES OF GENERAL REVENUE.] General community 
249.19  education revenue may be used for: 
249.20     (1) nonvocational, recreational, and leisure time 
249.21  activities and programs; 
249.22     (2) programs for adults with disabilities, if the programs 
249.23  and budgets are approved by the department; 
249.24     (3) adult basic education programs, according to section 
249.25  124.26; 
249.26     (4) summer programs for elementary and secondary pupils; 
249.27     (5) implementation of a youth development plan; 
249.28     (6) implementation of a youth service program; 
249.29     (7) early childhood family education programs, according to 
249.30  section 121.882; and 
249.31     (8) extended day programs, according to section 121.88, 
249.32  subdivision 10. 
249.33     (9) In addition to money from other sources, a district may 
249.34  use up to ten percent of its community education revenue for 
249.35  equipment that is used exclusively in community education 
249.36  programs.  This revenue may be used only for the following 
250.1   purposes:  
250.2      (i) to purchase or lease computers and related materials; 
250.3      (ii) to purchase or lease equipment for instructional 
250.4   programs; and 
250.5      (iii) to purchase textbooks and library books. 
250.6      Subd. 10.  [USE OF YOUTH SERVICE REVENUE.] Youth service 
250.7   revenue may be used to implement a youth development plan 
250.8   approved by the school board and to provide a youth service 
250.9   program according to section 121.88, subdivision 9. 
250.10     Subd. 11.  [RESERVE ACCOUNT.] Community education revenue, 
250.11  which includes aids, levies, fees, grants, and all other 
250.12  revenues received by the school district for community education 
250.13  programs, must be maintained in a reserve account within the 
250.14  community service fund. 
250.15     Sec. 49.  [120B.49] [ADDITIONAL COMMUNITY EDUCATION 
250.16  REVENUE.] 
250.17     (a) A district that is eligible under section 124.2713, 
250.18  subdivision 2, may levy an amount up to the amount authorized by 
250.19  Minnesota Statutes 1986, section 275.125, subdivision 8, clause 
250.20  (2).  
250.21     (b) Beginning with levies for fiscal year 1995, this levy 
250.22  must be reduced each year by the amount of any increase in the 
250.23  levying district's general community education revenue under 
250.24  section 124.2713, subdivision 3, for that fiscal year over the 
250.25  amount received by the district under section 124.2713, 
250.26  subdivision 3, for fiscal year 1994. 
250.27     (c) The proceeds of the levy may be used for the purposes 
250.28  set forth in section 124.2713, subdivision 8. 
250.29     Sec. 50.  [120B.50] [PROGRAM REVENUE; ADULTS WITH 
250.30  DISABILITIES.] 
250.31     Subdivision 1.  [REVENUE AMOUNT.] A district that is 
250.32  eligible according to section 124.2713, subdivision 2, may 
250.33  receive revenue for a program for adults with disabilities.  
250.34  Revenue for the program for adults with disabilities for a 
250.35  district or a group of districts equals the lesser of:  
250.36     (1) the actual expenditures for approved programs and 
251.1   budgets; or 
251.2      (2) $60,000.  
251.3      Subd. 2.  [AID.] Program aid for adults with disabilities 
251.4   equals the lesser of:  
251.5      (1) one-half of the actual expenditures for approved 
251.6   programs and budgets; or 
251.7      (2) $30,000.  
251.8      Subd. 3.  [LEVY.] A district may levy for a program for 
251.9   adults with disabilities an amount up to the amount designated 
251.10  in subdivision 2.  In the case of a program offered by a group 
251.11  of districts, the levy amount must be apportioned among the 
251.12  districts according to the agreement submitted to the department.
251.13     Subd. 4.  [OUTSIDE REVENUE.] A district may receive money 
251.14  from public or private sources to supplement revenue for the 
251.15  program for adults with disabilities.  Aid may not be reduced as 
251.16  a result of receiving money from these sources.  
251.17     Subd. 5.  [USE OF REVENUE.] Revenue for the program for 
251.18  adults with disabilities may be used only to provide programs 
251.19  for adults with disabilities.  
251.20     Sec. 51.  [120B.51] [EXTENDED DAY REVENUE.] 
251.21     Subdivision 1.  [ELIGIBILITY.] A district that offers an 
251.22  extended day program according to section 121.88, subdivision 
251.23  10, is eligible for extended day revenue for the additional 
251.24  costs of providing services to children with disabilities or to 
251.25  children experiencing family or related problems of a temporary 
251.26  nature who participate in the extended day program. 
251.27     Subd. 2.  [EXTENDED DAY REVENUE.] The extended day revenue 
251.28  for an eligible district equals the approved additional cost of 
251.29  providing services to children with disabilities or children 
251.30  experiencing family or related problems of a temporary nature 
251.31  who participate in the extended day program.  
251.32     Subd. 3.  [EXTENDED DAY LEVY.] To obtain extended day 
251.33  revenue, a district may levy an amount equal to the district's 
251.34  extended day revenue as defined in subdivision 2 multiplied by 
251.35  the lesser of one, or the ratio of the quotient derived by 
251.36  dividing the adjusted net tax capacity of the district for the 
252.1   year before the year the levy is certified by the actual pupil 
252.2   units in the district for the school year to which the levy is 
252.3   attributable, to $3,700.  
252.4      Subd. 4.  [EXTENDED DAY AID.] A district's extended day aid 
252.5   is the difference between its extended day revenue and its 
252.6   extended day levy.  If a district does not levy the entire 
252.7   amount permitted, extended day aid must be reduced in proportion 
252.8   to the actual amount levied. 
252.9      Sec. 52.  [120B.52] [MALE RESPONSIBILITY AND FATHERING 
252.10  GRANTS.] 
252.11     Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
252.12  children, families, and learning, in consultation with the 
252.13  commissioner of human services, shall make male responsibility 
252.14  and fathering grants to youth or parenting programs that 
252.15  collaborate with districts to educate young people, particularly 
252.16  males ages ten to 21, on the responsibilities of parenthood. 
252.17     Subd. 2.  [MATCHING MONEY.] Each dollar of state money must 
252.18  be matched with at least 50 cents of nonstate money including 
252.19  in-kind contributions.  Those programs with a higher match will 
252.20  have a greater chance of receiving a grant. 
252.21     Subd. 3.  [EXPECTED OUTCOMES.] Grant recipients must use 
252.22  the funds for programs designed to prevent teen pregnancy and to 
252.23  prevent crime in the long term.  Recipient programs must assist 
252.24  youth to: 
252.25     (1) understand the connection between sexual behavior, 
252.26  adolescent pregnancy, and the roles and responsibilities of 
252.27  marriage and parenting; 
252.28     (2) understand the long-term responsibility of fatherhood; 
252.29     (3) understand the importance of fathers in the lives of 
252.30  children; 
252.31     (4) acquire parenting skills and knowledge of child 
252.32  development; and 
252.33     (5) find community support for their roles as fathers and 
252.34  nurturers of children. 
252.35     Subd. 4.  [GRANT APPLICATIONS.] (a) An application for a 
252.36  grant may be submitted by a youth or parenting program whose 
253.1   purpose is to reduce teen pregnancy or teach child development 
253.2   and parenting skills in collaboration with a district.  Each 
253.3   grant application must include a description of the program's 
253.4   structure and components, including collaborative and outreach 
253.5   efforts; an implementation and evaluation plan to measure the 
253.6   program's success; a plan for using males as instructors and 
253.7   mentors; and a cultural diversity plan to ensure that staff or 
253.8   teachers will reflect the cultural backgrounds of the population 
253.9   served and that the program content is culturally sensitive. 
253.10     (b) Grant recipients must, at a minimum, provide education 
253.11  in responsible parenting and child development, responsible 
253.12  decision-making related to marriage and relationships, and the 
253.13  legal implications of paternity.  Grant recipients also must 
253.14  provide public awareness efforts in the collaborating school 
253.15  district.  Grant recipients may offer support groups, health and 
253.16  nutrition education, and mentoring and peer teaching. 
253.17     (c) A grant applicant must establish an advisory committee 
253.18  to assist the applicant in planning and implementation of a 
253.19  grant.  The advisory committee must include student 
253.20  representatives, adult males from the community, representatives 
253.21  of community organizations, teachers, parent educators, and 
253.22  representatives of family social service agencies. 
253.23     Subd. 5.  [ADMINISTRATION.] The commissioner shall 
253.24  administer male responsibility and fathering grants.  The 
253.25  commissioner shall establish a grant review committee composed 
253.26  of teachers and representatives of community organizations, 
253.27  student organizations, and education or family social service 
253.28  agencies that offer parent education programs. 
253.29     Subd. 6.  [REPORT.] The commissioner shall report to the 
253.30  legislature on the progress of the male responsibility and 
253.31  fathering programs by January 15, 1996. 
253.32     Sec. 53.  [120B.53] [ENVIRONMENTAL EDUCATION GOALS AND 
253.33  PLAN.] 
253.34     The environmental education program described in this 
253.35  chapter has these goals for the pupils and other citizens of 
253.36  this state: 
254.1      (a) Pupils and citizens should be able to apply informed 
254.2   decision-making processes to maintain a sustainable lifestyle.  
254.3   In order to do so, citizens should: 
254.4      (1) understand ecological systems; 
254.5      (2) understand the cause and effect relationship between 
254.6   human attitudes and behavior and the environment; 
254.7      (3) be able to evaluate alternative responses to 
254.8   environmental issues before deciding on alternative courses of 
254.9   action; and 
254.10     (4) understand the effects of multiple uses of the 
254.11  environment. 
254.12     (b) Pupils and citizens shall have access to information 
254.13  and experiences needed to make informed decisions about actions 
254.14  to take on environmental issues. 
254.15     (c) For purposes of this chapter, "state plan" means 
254.16  "Greenprint for Minnesota:  A State Plan for Environmental 
254.17  Education." 
254.18     Sec. 54.  [120B.54] [ENVIRONMENTAL EDUCATION RESOURCE 
254.19  CENTERS.] 
254.20     Subdivision 1.  [ESTABLISHMENT.] The director may establish 
254.21  environmental education resource centers throughout the state as 
254.22  needed.  The environmental education resource centers must serve 
254.23  as a source of information and programs for citizens, provide 
254.24  ongoing contact with the public for feedback to the director on 
254.25  regional environmental education issues and priorities, and 
254.26  serve as distribution centers for environmental education 
254.27  programs. 
254.28     Subd. 2.  [DUTIES.] The resource centers must: 
254.29     (1) implement the programs and priorities of the office as 
254.30  defined in the plan; 
254.31     (2) convey regional program priorities to the director; 
254.32     (3) evaluate regional implementation of environmental 
254.33  education programs and report to the director on the 
254.34  evaluations; 
254.35     (4) provide regional liaison and coordination for 
254.36  organizations, agencies, and individuals providing environmental 
255.1   education programs on particular issues; 
255.2      (5) be a distribution and publicity center for agencies, 
255.3   environmental organizations, environmental learning center 
255.4   publications, programs, and services; 
255.5      (6) be a central source of information for citizens 
255.6   interested in issues that are the responsibility of many 
255.7   agencies, boards, task forces, and organizations; 
255.8      (7) provide technical assistance to local and state 
255.9   organizations and agencies on program design, promotion, and 
255.10  publicity to reach the chosen target audiences; and 
255.11     (8) assist the service cooperatives by collecting and 
255.12  distributing environmental education teaching materials, 
255.13  displays, computer programs, resource person lists, and 
255.14  audio-visual aids, and provide assistance with teacher training 
255.15  workshops and programs on request. 
255.16     Sec. 55.  [120B.55] [EDUCATION AND EMPLOYMENT TRANSITIONS 
255.17  SYSTEM.] 
255.18     Subdivision 1.  [GOALS.] To better prepare all learners to 
255.19  make transitions between education and employment, a 
255.20  comprehensive education and employment transitions system is 
255.21  established that is driven by multisector partnerships and takes 
255.22  a lifelong approach to workforce development.  The goals of the 
255.23  statewide education and employment transitions system are: 
255.24     (1) to improve the skills learners need to achieve greater 
255.25  levels of self-sufficiency through education, training, and 
255.26  work; 
255.27     (2) to improve work-related counseling and information 
255.28  about career opportunities and vocational education programs 
255.29  available to learners to facilitate workforce development; 
255.30     (3) to integrate opportunities for work-based learning, 
255.31  service-learning, and other applied learning methods into the 
255.32  elementary, secondary, and post-secondary curriculum and state 
255.33  and local graduation standards; 
255.34     (4) to increase participation in employment opportunities 
255.35  and demonstrate the relationship between education and 
255.36  employment at the elementary, secondary, and post-secondary 
256.1   education levels; 
256.2      (5) to promote the efficient use of public and private 
256.3   resources by coordinating elementary, secondary, and 
256.4   post-secondary education with related government programs; 
256.5      (6) to expand educational options available to all learners 
256.6   through collaborative efforts between school districts, 
256.7   post-secondary institutions, employers, organized labor, 
256.8   workers, learners, parents, community-based organizations, and 
256.9   other interested parties; 
256.10     (7) to increase opportunities for women, minorities, 
256.11  individuals with a disability, and at-risk learners to fully 
256.12  participate in work-based learning; 
256.13     (8) to establish performance standards for learners that 
256.14  integrate state and local graduation standards and generally 
256.15  recognized industry and occupational skill standards; and 
256.16     (9) to provide support systems including a unified labor 
256.17  market information system; a centralized quality assurance 
256.18  system with information on learner achievement, employer 
256.19  satisfaction, and measurable system outcomes; a statewide 
256.20  marketing system to promote the importance of lifework 
256.21  development; a comprehensive professional development system for 
256.22  public and private sector partners; and a comprehensive system 
256.23  for providing technical support to local partnerships for 
256.24  education and employment transitions. 
256.25     Subd. 2.  [FUNDING.] Work-based learning programs 
256.26  incorporating post-secondary instruction implemented under this 
256.27  chapter shall provide for student funding according to section 
256.28  123.3514. 
256.29     Subd. 3.  [GOVERNOR'S WORKFORCE DEVELOPMENT COUNCIL.] The 
256.30  governor's workforce development council is responsible for 
256.31  developing, implementing, and evaluating the statewide education 
256.32  and employment transitions system and achieving the goals of the 
256.33  system. 
256.34     Subd. 4.  [PARTNERSHIP GRANTS.] The council must award 
256.35  grants to implement local education and employment transition 
256.36  systems to local education and employment transition 
257.1   partnerships established under section 126B.10.  Grants under 
257.2   this section may be used for the local education and employment 
257.3   transitions system, youth apprenticeship and other work-based 
257.4   learning programs, youth employer programs, youth 
257.5   entrepreneurship programs, and other programs and purposes the 
257.6   council determines fulfill the purposes of the education and 
257.7   employment transitions system.  The council must evaluate grant 
257.8   proposals on the basis of the elements required in the local 
257.9   plan described in section 126B.10, subdivision 3.  The council 
257.10  must develop and publicize the grant application process and 
257.11  review and comment on the proposals submitted.  Priority in 
257.12  awarding grants must be given to local partnerships that include 
257.13  multiple communities and a viable base of educational, 
257.14  work-based learning, and employment opportunities.  
257.15     Subd. 5.  [ANNUAL REVIEW.] The council must review the 
257.16  activities of each local education and employment transitions 
257.17  partnership annually to ensure that the local partnership is 
257.18  adequately meeting the system standards under section 126B.10 
257.19  and state quality assurance standards established as part of the 
257.20  quality assurance system developed by the council.  This 
257.21  subdivision expires July 1, 1997. 
257.22     Subd. 6.  [REPORT.] The council must annually publish a 
257.23  report summarizing the data submitted by each local education 
257.24  and employment transitions partnership.  The report must be 
257.25  published no later than September 1 of the year following the 
257.26  year in which the data was collected.  This subdivision expires 
257.27  July 1, 1997.  
257.28     Sec. 56.  [120B.56] [COMPREHENSIVE YOUTH APPRENTICESHIP 
257.29  PROGRAM.] 
257.30     Subdivision 1.  [ACADEMIC INSTRUCTION AND WORK-RELATED 
257.31  LEARNING.] Comprehensive youth apprenticeship programs and other 
257.32  work-based learning programs under the education and employment 
257.33  transitions system must integrate academic instruction and 
257.34  work-related learning in the classroom and at the workplace.  
257.35  Schools, in collaboration with learners' employers, must use 
257.36  competency-based measures to evaluate learners' progress in the 
258.1   program.  Learners who successfully complete the program must 
258.2   receive academic and occupational credentials from the 
258.3   participating school. 
258.4      Subd. 2.  [YOUTH APPRENTICESHIP PROGRAMS.] (a) A 
258.5   comprehensive youth apprenticeship program must require 
258.6   representatives of secondary and post-secondary school systems, 
258.7   affected local businesses, industries, occupations and labor, as 
258.8   well as the local community, to be actively and collaboratively 
258.9   involved in advising and managing the program and ensuring, in 
258.10  consultation with local private industry councils, that the 
258.11  youth apprenticeship program meets local labor market demands, 
258.12  provides student apprentices with the high skill training 
258.13  necessary for career advancement, meets applicable state 
258.14  graduation requirements and labor standards, pays apprentices 
258.15  for their work and provides support services to program 
258.16  participants. 
258.17     (b) Local employers, collaborating with labor organizations 
258.18  where appropriate, must assist the program by analyzing 
258.19  workplace needs, creating work-related curriculum, employing and 
258.20  adequately paying youth apprentices engaged in work-related 
258.21  learning in the workplace, training youth apprentices to become 
258.22  skilled in an occupation, providing student apprentices with a 
258.23  workplace mentor, periodically informing the school of an 
258.24  apprentice's progress, and making a reasonable effort to employ 
258.25  youth apprentices who successfully complete the program. 
258.26     (c) A student participating in a comprehensive youth 
258.27  apprenticeship program must sign a youth apprenticeship 
258.28  agreement with participating entities that obligates youth 
258.29  apprentices, their parents or guardians, employers, and schools 
258.30  to meet program requirements; indicates how academic 
258.31  instruction, work-based learning, and worksite learning and 
258.32  experience will be integrated; ensures that successful youth 
258.33  apprentices will receive a recognized credential of academic and 
258.34  occupational proficiency; and establishes the wage rate and 
258.35  other benefits for which youth apprentices are eligible while 
258.36  employed during the program. 
259.1      (d) Secondary school principals, counselors, or business 
259.2   mentors familiar with the education to employment transitions 
259.3   system must inform entering secondary school students about 
259.4   available occupational and career opportunities and the option 
259.5   of entering a youth apprenticeship or other work-based learning 
259.6   program to obtain post-secondary academic and occupational 
259.7   credentials. 
259.8      Sec. 57.  [120B.57] [GENERAL PROVISIONS.] 
259.9      All state and federal laws relating to workplace health and 
259.10  safety apply to youth apprenticeships. 
259.11     The employment of a youth apprentice may not displace or 
259.12  cause any reduction in the number of nonovertime hours worked, 
259.13  wages, or benefits of a currently employed worker. 
259.14     Sec. 58.  [120B.58] [EDUCATION AND EMPLOYMENT TRANSITIONS 
259.15  PARTNERSHIPS.] 
259.16     Subdivision 1.  [LOCAL PARTNERSHIPS; ESTABLISHMENT.] Local 
259.17  education and employment transitions partnerships may be 
259.18  established to implement local education and employment 
259.19  transitions systems.  Local partnerships must represent multiple 
259.20  sectors in the community, including, at a minimum, 
259.21  representatives of employers, primary and secondary education, 
259.22  labor and professional organizations, workers, learners, 
259.23  parents, community-based organizations, and to the extent 
259.24  possible, post-secondary education.  
259.25     Subd. 2.  [BOARD.] A local education and employment 
259.26  transitions partnership must establish a governing board for 
259.27  planning and implementing work-based and other applied learning 
259.28  programs.  The board must consist of at least one representative 
259.29  from each member of the education and employment transitions 
259.30  partnership.  A majority of the board must consist of 
259.31  representatives of local or regional employers. 
259.32     Subd. 3.  [LOCAL EDUCATION AND EMPLOYMENT TRANSITIONS 
259.33  SYSTEMS.] A local education and employment transitions 
259.34  partnership must assess the needs of employers, employees, and 
259.35  learners, and develop a plan for implementing and achieving the 
259.36  objectives of a local or regional education and employment 
260.1   transitions system.  The plan must provide for a comprehensive 
260.2   local system for assisting learners and workers in making the 
260.3   transition from school to work or for retraining in a new 
260.4   vocational area.  The objectives of a local education and 
260.5   employment transitions system include:  
260.6      (1) increasing the effectiveness of the educational 
260.7   programs and curriculum of elementary, secondary, and 
260.8   post-secondary schools and the work site in preparing students 
260.9   in the skills and knowledge needed to be successful in the 
260.10  workplace; 
260.11     (2) implementing learner outcomes for students in grades 
260.12  kindergarten through 12 designed to introduce the world of work 
260.13  and to explore career opportunities, including nontraditional 
260.14  career opportunities; 
260.15     (3) eliminating barriers to providing effective integrated 
260.16  applied learning, service-learning, or work-based curriculum; 
260.17     (4) increasing opportunities to apply academic knowledge 
260.18  and skills, including skills needed in the workplace, in local 
260.19  settings which include the school, school-based enterprises, 
260.20  post-secondary institutions, the workplace, and the community; 
260.21     (5) increasing applied instruction in the attitudes and 
260.22  skills essential for success in the workplace, including 
260.23  cooperative working, leadership, problem-solving, and respect 
260.24  for diversity; 
260.25     (6) providing staff training for vocational guidance 
260.26  counselors, teachers, and other appropriate staff in the 
260.27  importance of preparing learners for the transition to work, and 
260.28  in methods of providing instruction that incorporate applied 
260.29  learning, work-based learning, and service-learning experiences; 
260.30     (7) identifying and enlisting local and regional employers 
260.31  who can effectively provide work-based or service-learning 
260.32  opportunities, including, but not limited to, apprenticeships, 
260.33  internships, and mentorships; 
260.34     (8) recruiting community and workplace mentors including 
260.35  peers, parents, employers and employed individuals from the 
260.36  community, and employers of high school students; 
261.1      (9) identifying current and emerging educational, training, 
261.2   and employment needs of the area or region, especially within 
261.3   industries with potential for job growth; 
261.4      (10) improving the coordination and effectiveness of local 
261.5   vocational and job training programs, including vocational 
261.6   education, adult basic education, tech prep, apprenticeship, 
261.7   service-learning, youth entrepreneur, youth training and 
261.8   employment programs administered by the commissioner of economic 
261.9   security, and local job training programs under the Job Training 
261.10  Partnership Act, United States Code, title 29, section 1501, et 
261.11  seq.; 
261.12     (11) identifying and applying for federal, state, local, 
261.13  and private sources of funding for vocational or applied 
261.14  learning programs; 
261.15     (12) providing students with current information and 
261.16  counseling about career opportunities, potential employment, 
261.17  educational opportunities in post-secondary institutions, 
261.18  workplaces, and the community, and the skills and knowledge 
261.19  necessary to succeed; 
261.20     (13) providing educational technology, including 
261.21  interactive television networks and other distance learning 
261.22  methods, to ensure access to a broad variety of work-based 
261.23  learning opportunities; 
261.24     (14) including students with disabilities in a district's 
261.25  vocational or applied learning program and ways to serve at-risk 
261.26  learners through collaboration with area learning centers under 
261.27  sections 124C.45 to 124C.49, or other alternative programs; and 
261.28     (15) providing a warranty to employers, post-secondary 
261.29  education programs, and other post-secondary training programs, 
261.30  that learners successfully completing a high school work-based 
261.31  or applied learning program will be able to apply the knowledge 
261.32  and work skills included in the program outcomes or graduation 
261.33  requirements.  The warranty shall require education and training 
261.34  programs to continue to work with those learners that need 
261.35  additional skill development until they can demonstrate 
261.36  achievement of the program outcomes or graduation requirements. 
262.1      Subd. 4.  [ANNUAL REPORTS.] A local education and 
262.2   employment transitions partnership must annually publish a 
262.3   report and submit information to the council as required.  The 
262.4   report must include information required by the council for the 
262.5   statewide system performance assessment.  The report must be 
262.6   available to the public in the communities served by the local 
262.7   education and employment transitions partnership.  The report 
262.8   must be published no later than September 1 of the year 
262.9   following the year in which the data was collected. 
262.10     Sec. 59.  [120B.59] [CITATION.] 
262.11     Sections 124C.11 and 124C.12 may be cited as the Minnesota 
262.12  local partnership act. 
262.13     Sec. 60.  [120B.60] [PURPOSE OF THE MINNESOTA LOCAL 
262.14  PARTNERSHIP ACT.] 
262.15     The purpose of the Minnesota local partnership act is to 
262.16  design methods to focus on the development and learning of 
262.17  children and youth in Minnesota in the 1990's and the next 
262.18  century.  Cooperation and collaboration of all services, 
262.19  including education, health, and human services for children and 
262.20  youth will be encouraged at the local and state level.  The 
262.21  program will provide incentives to design a system of 
262.22  child-focused coordinated services to enhance the learning and 
262.23  development of individual children and youth. 
262.24     Sec. 61.  [120B.61] [MINNESOTA LOCAL PARTNERSHIP PROGRAM.] 
262.25     Subdivision 1.  [ESTABLISHMENT.] A program is established 
262.26  under the direction of the state board of education with the 
262.27  cooperation of the commissioners of children, families, and 
262.28  learning, health, and human services.  It is expected that 
262.29  participants and other districts will become exemplary districts 
262.30  by the year 2000. 
262.31     Subd. 2.  [ELIGIBILITY.] An applicant for revenue may be 
262.32  any one of the following: 
262.33     (1) a district located in a city of the first class 
262.34  offering a program in cooperation with other districts or by 
262.35  itself, in one or more areas in the district or in the entire 
262.36  district; 
263.1      (2) at least two cooperating districts located in the 
263.2   seven-county metropolitan area but not located in a city of the 
263.3   first class; 
263.4      (3) a group of districts that are all members of the same 
263.5   education district; 
263.6      (4) an education district; 
263.7      (5) a group of cooperating districts none of which are 
263.8   members of any education district; or 
263.9      (6) a district. 
263.10     Subd. 3.  [COMMUNITY EDUCATION COUNCIL.] Each revenue 
263.11  recipient must establish one or more community education 
263.12  councils.  A community education council may be composed of 
263.13  elected representatives of local governments, an education 
263.14  district board, school boards, human service providers, health 
263.15  providers, education providers, community service organizations, 
263.16  clergy, local education sites, and local businesses.  The 
263.17  community education council shall plan for the education, human 
263.18  service, and health needs of the community and collaborative 
263.19  ways to modify or build facilities for use by all community 
263.20  residents.  A council formed under this subdivision may be an 
263.21  expansion of and replace the community education advisory 
263.22  council required by section 121.88, subdivision 2. 
263.23     Subd. 4.  [APPLICATION PROCESS.] To obtain revenue, a 
263.24  district or districts must submit an application to the state 
263.25  board in the form and manner established by the state board.  
263.26  Additional information may be required by the state board. 
263.27     Subd. 5.  [REVENUE.] The state board may award revenue to 
263.28  up to four applicants.  The board may determine the size of the 
263.29  award based upon the application.  Recipients must be located 
263.30  throughout the state.  
263.31     Subd. 6.  [PROCEEDS OF REVENUE.] Revenue may be used for 
263.32  initial planning expenses and for implementing child-focused 
263.33  learning and development programs. 
263.34                             ARTICLE 4
263.35                            CHAPTER 121
263.36             STATE ADMINISTRATION; INTERSTATE COMPACT
264.1      Section 1.  [121.141] [RESULTS-ORIENTED GRADUATION RULE.] 
264.2      (a) The legislature is committed to establishing a 
264.3   rigorous, results-oriented graduation rule for Minnesota's 
264.4   public school students.  To that end, the state board shall use 
264.5   its rulemaking authority under subdivision 7b to adopt a 
264.6   statewide, results-oriented graduation rule to be implemented 
264.7   starting with students beginning ninth grade in the 1996-1997 
264.8   school year.  The board shall not prescribe in rule or otherwise 
264.9   the delivery system, form of instruction, or a single statewide 
264.10  form of assessment that local sites must use to meet the 
264.11  requirements contained in this rule. 
264.12     (b) To successfully accomplish paragraph (a), the state 
264.13  board shall set in rule high academic standards for all 
264.14  students.  The standards must contain the foundational skills in 
264.15  the three core curricular areas of reading, writing, and 
264.16  mathematics while meeting requirements for high school 
264.17  graduation.  The standards must also provide an opportunity for 
264.18  students to excel by meeting higher academic standards through a 
264.19  profile of learning that uses curricular requirements to allow 
264.20  students to expand their knowledge and skills beyond the 
264.21  foundational skills.  All state board actions regarding the rule 
264.22  must be premised on the following:  
264.23     (1) the rule is intended to raise academic expectations for 
264.24  students, teachers, and schools; 
264.25     (2) any state action regarding the rule must evidence 
264.26  consideration of school district autonomy; and 
264.27     (3) the department of children, families, and learning, 
264.28  with the assistance of school districts, must make available 
264.29  information about all state initiatives related to the rule to 
264.30  students and parents, teachers, and the general public in a 
264.31  timely format that is appropriate, comprehensive, and readily 
264.32  understandable. 
264.33     (c) For purposes of adopting the rule, the state board, in 
264.34  consultation with the department, recognized psychometric 
264.35  experts in assessment, and other interested and knowledgeable 
264.36  educators, using the most current version of professional 
265.1   standards for educational testing, shall evaluate the 
265.2   alternative approaches to assessment.  
265.3      (d) The content of the graduation rule must differentiate 
265.4   between minimum competencies reflected in the basic requirements 
265.5   assessment and rigorous profile of learning standards.  When 
265.6   fully implemented, the requirements for high school graduation 
265.7   in Minnesota must include both basic requirements and the 
265.8   required profile of learning.  The profile of learning must 
265.9   measure student performance using performance-based assessments 
265.10  compiled over time that integrate higher academic standards, 
265.11  higher order thinking skills, and application of knowledge from 
265.12  a variety of content areas.  The profile of learning shall 
265.13  include a broad range of academic experience and accomplishment 
265.14  necessary to achieve the goal of preparing students to function 
265.15  effectively as purposeful thinkers, effective communicators, 
265.16  self-directed learners, productive group participants, and 
265.17  responsible citizens. 
265.18     (e) The state board shall periodically review and report on 
265.19  the assessment process and student achievement with the 
265.20  expectation of raising the standards and expanding high school 
265.21  graduation requirements. 
265.22     (f) The state board shall report in writing to the 
265.23  legislature annually by January 15 on its progress in developing 
265.24  and implementing the graduation requirements according to the 
265.25  requirements of this subdivision and section 123.97 until such 
265.26  time as all the graduation requirements are implemented. 
265.27     Sec. 2.  [121.142] [SYSTEM ACCOUNTABILITY AND STATISTICAL 
265.28  ADJUSTMENTS.] 
265.29     Subdivision 1.  [EDUCATIONAL ACCOUNTABILITY AND PUBLIC 
265.30  REPORTING.] Consistent with the state board of education process 
265.31  to adopt a results-oriented graduation rule under section 
265.32  121.11, subdivision 7c, the state board and the department, in 
265.33  consultation with education and other system stakeholders, must 
265.34  establish a coordinated and comprehensive system of educational 
265.35  accountability and public reporting that promotes higher 
265.36  academic achievement. 
266.1      Subd. 2.  [STATISTICAL ADJUSTMENTS.] In developing policies 
266.2   and assessment processes to hold schools and districts 
266.3   accountable for high levels of academic standards, including the 
266.4   profile of learning, the commissioner shall aggregate student 
266.5   data over time to report student performance levels measured at 
266.6   the school district, regional, or statewide level.  When 
266.7   collecting and reporting the data, the commissioner shall:  (1) 
266.8   acknowledge the impact of significant demographic factors such 
266.9   as residential instability, the number of single parent 
266.10  families, parents' level of education, and parents' income level 
266.11  on school outcomes; and (2) organize and report the data so that 
266.12  state and local policymakers can understand the educational 
266.13  implications of changes in districts' demographic profiles over 
266.14  time.  Any report the commissioner disseminates containing 
266.15  summary data on student performance must integrate student 
266.16  performance and the demographic factors that strongly correlate 
266.17  with that performance. 
266.18     Sec. 3.  Minnesota Statutes 1996, section 121.1601, is 
266.19  amended by adding a subdivision to read: 
266.20     Subd. 4.  [INCLUSIVE EDUCATION AND LICENSURE RULES.] (a) 
266.21  The state board may make rules relating to 
266.22  desegregation/integration, inclusive education, and licensure of 
266.23  school personnel not licensed by the board of teaching. 
266.24     (b) In adopting a rule related to school 
266.25  desegregation/integration, the state board shall address the 
266.26  need for equal educational opportunities for all students and 
266.27  racial balance as defined by the state board. 
266.28     Sec. 4.  [121.1602] [STATE MULTICULTURAL EDUCATION ADVISORY 
266.29  COMMITTEE.] 
266.30     (a) The commissioner shall appoint a state multicultural 
266.31  education advisory committee to advise the department and the 
266.32  state board on multicultural education.  The committee must have 
266.33  12 members and be composed of representatives from among the 
266.34  following groups and community organizations:  African-American, 
266.35  Asian-Pacific, Hispanic, and American Indian. 
266.36     (b) The state committee shall provide information and 
267.1   recommendations on: 
267.2      (1) department procedures for reviewing and approving 
267.3   district plans and disseminating information on multicultural 
267.4   education; 
267.5      (2) department procedures for improving inclusive education 
267.6   plans, curriculum and instruction improvement plans, and 
267.7   performance-based assessments; 
267.8      (3) developing learner outcomes which are multicultural; 
267.9   and 
267.10     (4) other recommendations that will further inclusive, 
267.11  multicultural education. 
267.12     (c) The committee shall also participate in determining the 
267.13  criteria for and awarding the grants established under Laws 
267.14  1993, chapter 224, article 8, section 22, subdivision 8. 
267.15     Sec. 5.  [121.903] [UNIFORM SYSTEM OF RECORDS AND OF 
267.16  ACCOUNTING.] 
267.17     The state board shall prepare a uniform system of records 
267.18  for public schools, require reports from superintendents and 
267.19  principals of schools, teachers, school officers, and the chief 
267.20  officers of public and other educational institutions, to give 
267.21  such facts as it may deem of public value.  Beginning in fiscal 
267.22  year 1977, all reports required of school districts by the state 
267.23  board shall be in conformance with the uniform financial 
267.24  accounting and reporting system.  With the cooperation of the 
267.25  state auditor, the state board shall establish and carry into 
267.26  effect a uniform system of accounting by public school officers 
267.27  and it shall have authority to supervise and examine the 
267.28  accounts and other records of all public schools.  
267.29     Sec. 6.  [121.961] [PERMANENT SCHOOL FUND ADVISORY 
267.30  COMMITTEE.] 
267.31     A state permanent school fund advisory committee is 
267.32  established to advise the department of natural resources on the 
267.33  management of permanent school fund land, which is held in trust 
267.34  for the school districts of the state.  The advisory committee 
267.35  must consist of the following persons or their designees:  the 
267.36  chairs of the education committees of the legislature, the 
268.1   chairs of the senate committee on finance and house committee on 
268.2   ways and means, the commissioner of children, families, and 
268.3   learning, one superintendent from a nonmetropolitan district, 
268.4   and one superintendent from a metropolitan area district.  The 
268.5   school district superintendents shall be appointed by the 
268.6   commissioner of children, families, and learning.  
268.7      The advisory committee shall review the policies of the 
268.8   department of natural resources on management of school trust 
268.9   fund lands and shall recommend necessary changes in policy and 
268.10  implementation in order to ensure provident utilization of the 
268.11  permanent school fund lands.  
268.12     Sec. 7.  [121.962] [GOAL OF THE PERMANENT SCHOOL FUND.] 
268.13     The legislature intends that it is the goal of the 
268.14  permanent school fund to secure the maximum long-term economic 
268.15  return from the school trust lands consistent with the fiduciary 
268.16  responsibilities imposed by the trust relationship established 
268.17  in the Minnesota Constitution, with sound natural resource 
268.18  conservation and management principles, and with other specific 
268.19  policy provided in state law. 
268.20     Sec. 8.  [121.963] [SCHOOL ENDOWMENT FUND; DESIGNATION.] 
268.21     For the purpose of aid to public schools, a school 
268.22  endowment fund is established.  
268.23     The school endowment fund shall consist of the income from 
268.24  the permanent school fund.  The commissioner may accept for and 
268.25  on behalf of the permanent school fund a donation of cash, 
268.26  marketable securities, or other personal property.  A noncash 
268.27  donation, other than a donation of marketable securities, must 
268.28  be disposed of for cash as soon as the commissioner can obtain 
268.29  fair market value for the donation.  Marketable securities may 
268.30  be disposed of at the discretion of the state board of 
268.31  investment consistent with sections 11A.16 and 11A.24.  A cash 
268.32  donation and the cash receipts from a donation disposed of for 
268.33  cash must be credited immediately to the permanent school fund.  
268.34  Earnings from marketable securities are earnings of the 
268.35  permanent school fund. 
268.36     Sec. 9.  [121.964] [SCHOOL ENDOWMENT FUND; APPORTIONMENT.] 
269.1      The commissioner shall apportion the school endowment fund 
269.2   semiannually on the first Monday in March and September in each 
269.3   year, to districts whose schools have been in session at least 
269.4   nine months.  The apportionment shall be in proportion to the 
269.5   number of pupils in average daily membership during the 
269.6   preceding year.  The apportionment shall not be paid to a 
269.7   district for pupils for whom tuition is received by the district.
269.8      Sec. 10.  [121.966] [AUDITOR'S DUTIES.] 
269.9      Subdivision 1.  [COPY TO COMMISSIONER OF FINANCE.] The 
269.10  commissioner shall furnish a copy of the apportionment of the 
269.11  school endowment fund to the commissioner of finance, who 
269.12  thereupon shall draw warrants on the state treasury, payable to 
269.13  the several districts, for the amount due each district.  There 
269.14  is hereby annually appropriated from the school endowment fund 
269.15  the amount of such apportionments. 
269.16     Subd. 2.  [APPORTIONMENTS TO DISTRICTS.] The county auditor 
269.17  each year shall apportion to the districts within the county the 
269.18  amount received from power line taxes under section 273.42, 
269.19  liquor licenses, fines, estrays, and other sources belonging to 
269.20  the general fund.  The apportionments must be made in proportion 
269.21  to each district's net tax capacity within the county in the 
269.22  prior year.  The apportionments must be made and amounts 
269.23  distributed to the districts at the times provided for the 
269.24  settlement and distribution of real and personal property taxes 
269.25  under sections 276.09, 276.11, and 276.111, except that all of 
269.26  the power line taxes apportioned to a district from the county 
269.27  school fund must be included in the first half distribution of 
269.28  property taxes to the district.  No district shall receive any 
269.29  part of the money received from liquor licenses unless all sums 
269.30  paid for such licenses in such district are apportioned to the 
269.31  county school fund.  
269.32     Subd. 3.  [REPORT TO COMMISSIONER.] The county auditor, on 
269.33  the first Wednesday after such apportionment, shall report to 
269.34  the commissioner on the amount apportioned, the sources from 
269.35  which such money was received, and the net tax capacity of each 
269.36  district in the county. 
270.1      Sec. 11.  [121.968] [MANNER OF PAYMENT OF STATE AIDS.] 
270.2      It shall be the duty of the commissioner to deliver to the 
270.3   commissioner of finance a certificate for each district entitled 
270.4   to receive state aid under the provisions of this chapter.  Upon 
270.5   the receipt of such certificate, it shall be the duty of the 
270.6   commissioner of finance to draw a warrant upon the state 
270.7   treasurer in favor of the district for the amount shown by each 
270.8   certificate to be due to the district.  The commissioner of 
270.9   finance shall transmit such warrants to the district together 
270.10  with a copy of the certificate prepared by the commissioner. 
270.11     Sec. 12.  [121.969] [DISTRIBUTION OF SCHOOL AIDS; 
270.12  APPROPRIATION.] 
270.13     Subdivision 1.  [SUPERVISION OF DISTRIBUTION.] The 
270.14  commissioner shall supervise distribution of school aids and 
270.15  grants in accordance with law.  It may make rules consistent 
270.16  with law for the distribution to enable districts to perform 
270.17  efficiently the services required by law and further education 
270.18  in the state, including reasonable requirements for the reports 
270.19  and accounts to it as will assure accurate and lawful 
270.20  apportionment of aids.  State and federal aids and discretionary 
270.21  or entitlement grants distributed by the commissioner shall not 
270.22  be subject to the contract approval procedures of the 
270.23  commissioner of administration or to chapter 16A or 16B.  The 
270.24  commissioner shall adopt internal procedures for administration 
270.25  and monitoring of aids and grants. 
270.26     Subd. 2.  [ERRORS IN DISTRIBUTION.] On determining that the 
270.27  amount of state aid distributed to a district is in error, the 
270.28  commissioner is authorized to adjust the amount of aid 
270.29  consistent with this subdivision.  On determining that the 
270.30  amount of aid is in excess of the district's entitlement, the 
270.31  commissioner is authorized to recover the amount of the excess 
270.32  by any appropriate means.  Notwithstanding the fiscal years 
270.33  designated by the appropriation, the excess may be recovered by 
270.34  reducing future aid payments to the district.  Notwithstanding 
270.35  any law to the contrary, if the aid reduced is not of the same 
270.36  type as that overpaid, the district must adjust all necessary 
271.1   financial accounts to properly reflect all revenues earned in 
271.2   accordance with the uniform financial accounting and reporting 
271.3   standards pursuant to sections 121.904 to 121.917.  
271.4   Notwithstanding the fiscal years designated by the 
271.5   appropriation, on determining that the amount of an aid paid is 
271.6   less than the school district's entitlement, the commissioner is 
271.7   authorized to increase such aid from the current appropriation. 
271.8      Subd. 3.  [AUDITS.] The commissioner shall establish 
271.9   procedures for conducting and shall conduct audits of district 
271.10  records and files for the purpose of verifying district pupil 
271.11  counts, levy limitations, and aid entitlements.  The 
271.12  commissioner shall establish procedures for selecting and shall 
271.13  select districts to be audited.  Disparities, if any, between 
271.14  pupil counts, levy limitations, or aid entitlements determined 
271.15  by audit of district records and files and data reported by 
271.16  districts in reports, claims and other documents shall be 
271.17  reviewed by the commissioner who shall order increases or 
271.18  decreases accordingly.  Whenever possible, the commissioner 
271.19  shall audit at least 25 districts each year pursuant to this 
271.20  subdivision.  
271.21     Subd. 4.  [LESS THAN 25 DISTRICTS AUDITED.] If the 
271.22  commissioner audits fewer than 25 districts in a fiscal year 
271.23  pursuant to subdivision 3, the commissioner shall report the 
271.24  reasons for the number audited to the following legislative 
271.25  committees:  house education, house appropriations, senate 
271.26  education, and senate finance.  
271.27     Subd. 5.  [FINAL DECISION AND RECORDS.] A reduction of aid 
271.28  under this section may be appealed to the state board of 
271.29  education and its decision shall be final.  Public schools shall 
271.30  at all times be open to the inspection of the commissioner.  The 
271.31  accounts and records of any district must be open to inspection 
271.32  by the state auditor, the state board, or the commissioner for 
271.33  the purpose of audits conducted under this section.  Each 
271.34  district shall keep for a minimum of three years at least the 
271.35  following:  (1) identification of the annual session days held, 
271.36  together with a record of the length of each session day, (2) a 
272.1   record of each pupil's daily attendance, with entrance and 
272.2   withdrawal dates, and (3) identification of the pupils 
272.3   transported who are reported for transportation aid.  
272.4      Subd. 6.  [ADJUSTMENT APPROPRIATION.] There is annually 
272.5   appropriated from the general fund to the department any 
272.6   additional amounts necessary for the adjustments made pursuant 
272.7   to section 124.155, subdivision 1. 
272.8      Subd. 7.  [APPROPRIATION TRANSFERS.] If a direct 
272.9   appropriation from the general fund to the department for any 
272.10  education aid or grant authorized in this chapter and chapters 
272.11  121, 123, 124A, 124C, 125, 126, and 134 exceeds the amount 
272.12  required, the commissioner may transfer the excess to any 
272.13  education aid or grant appropriation that is insufficient.  
272.14  However, section 124A.032 applies to a deficiency in the direct 
272.15  appropriation for general education aid.  Excess appropriations 
272.16  must be allocated proportionately among aids or grants that have 
272.17  insufficient appropriations.  The commissioner of finance shall 
272.18  make the necessary transfers among appropriations according to 
272.19  the determinations of the commissioner.  If the amount of the 
272.20  direct appropriation for the aid or grant plus the amount 
272.21  transferred according to this subdivision is insufficient, the 
272.22  commissioner shall prorate the available amount among eligible 
272.23  districts.  The state is not obligated for any additional 
272.24  amounts.  
272.25     Subd. 8.  [HEALTH AND SAFETY AID TRANSFER.] The 
272.26  commissioner, with the approval of the commissioner of finance, 
272.27  annually may transfer an amount from the appropriation for 
272.28  health and safety aid to the appropriation for debt service aid 
272.29  for the same fiscal year.  The amount of the transfer equals the 
272.30  amount necessary to fund any shortage in the debt service aid 
272.31  appropriation created by a data correction that occurs between 
272.32  November 1 and June 30 of the preceding fiscal year. 
272.33     Sec. 13.  [121.970] [REDUCTION OF AID FOR VIOLATION OF 
272.34  LAW.] 
272.35     Subdivision 1.  [REDUCTION SHOWN ON CERTIFICATE.] The 
272.36  amount of special state aids to which a district is entitled 
273.1   shall be the amount computed according to statutes.  The annual 
273.2   state aid certificate made by the commissioner to the 
273.3   commissioner of finance shall show the amount of any reductions 
273.4   made. 
273.5      Subd. 2.  [VIOLATIONS OF LAW.] The commissioner shall 
273.6   reduce the district's special state aid for any school year 
273.7   whenever the board of the district authorizes or permits 
273.8   violations of law within the district by: 
273.9      (1) employing a teacher who does not hold a valid teaching 
273.10  license or permit in a public school; 
273.11     (2) noncompliance with a mandatory rule of general 
273.12  application promulgated by the state board in accordance with 
273.13  statute, unless special circumstances make enforcement 
273.14  inequitable, impose an extraordinary hardship on the district, 
273.15  or the rule is contrary to the district's best interests; 
273.16     (3) the district's continued performance of a contract made 
273.17  for the rental of rooms or buildings for school purposes or for 
273.18  the rental of any facility owned or operated by or under the 
273.19  direction of any private organization, if the contract has been 
273.20  disapproved, the time for review of the determination of 
273.21  disapproval has expired, and no proceeding for review is 
273.22  pending; 
273.23     (4) any practice which is a violation of sections 1 and 2 
273.24  of article 13 of the Constitution of the state of Minnesota; 
273.25     (5) failure to reasonably provide for a resident pupil's 
273.26  school attendance under Minnesota Statutes; or 
273.27     (6) noncompliance with state laws prohibiting 
273.28  discrimination because of race, color, creed, religion, national 
273.29  origin, sex, age, marital status, status with regard to public 
273.30  assistance or disability, as defined in section 363.03. 
273.31  The reduction must be made in the amount and upon the procedure 
273.32  provided in this section or, in the case of the violation stated 
273.33  in clause (1), upon the procedure provided in section 124.19, 
273.34  subdivision 3. 
273.35     Subd. 3.  [ASSURANCE OF COMPLIANCE.] After consultation 
273.36  with the commissioner of human rights, the state board of 
274.1   education shall adopt rules in conformance with chapter 14.  The 
274.2   rules must direct districts to file with the commissioner of 
274.3   children, families, and learning assurances of compliance with 
274.4   state and federal laws prohibiting discrimination and specify 
274.5   the information required to be submitted in support of the 
274.6   assurances.  The commissioner shall provide copies of the 
274.7   assurances and the supportive information to the commissioner of 
274.8   human rights.  If, after reviewing the assurances and the 
274.9   supportive information it appears that one or more violations of 
274.10  the Minnesota human rights act are occurring in the district, 
274.11  the commissioner of human rights shall notify the commissioner 
274.12  of the violations, and the commissioner of children, families, 
274.13  and learning may then proceed pursuant to subdivision 4. 
274.14     Subd. 4.  [NOTICE TO BOARD.] When it appears that an 
274.15  enumerated violation is occurring in a district, the 
274.16  commissioner shall notify the board of that district in 
274.17  writing.  The notice must specify the violations, set a 
274.18  reasonable time within which the district must correct the 
274.19  specified violations, describe the correction required, and 
274.20  advise that if the correction is not made within the time 
274.21  allowed, special state aids to the district will be reduced.  
274.22  The time allowed for correction may be extended by the 
274.23  commissioner if there is reasonable ground therefor. 
274.24     Subd. 5.  [DISPUTE VIOLATIONS; HEARING.] The board to which 
274.25  such notice is given may, by a majority vote of the whole board, 
274.26  decide to dispute that the specified violation exists or that 
274.27  the time allowed is reasonable or the correction specified is 
274.28  correct, or that the commissioner may reduce aids.  The board 
274.29  must give the commissioner written notice of the decision.  If 
274.30  the commissioner, after further investigation as the 
274.31  commissioner deems necessary, adheres to the previous notice, 
274.32  the board shall be entitled to a hearing by the state board.  
274.33  The state board must set a hearing time and place and the board 
274.34  of the district must be given notice by mail.  The state board 
274.35  must adopt rules governing the proceedings for hearings.  The 
274.36  hearings must be designed to give a full and fair hearing and 
275.1   permit interested parties an opportunity to produce evidence 
275.2   relating to the issues involved.  The rules may provide that any 
275.3   question of fact to be determined at the hearing may be referred 
275.4   to one or more members of the board or to an employee of the 
275.5   state board acting as a referee to hear evidence and report the 
275.6   testimony taken to the state board.  The state board, or a 
275.7   person designated to receive evidence at a hearing, shall have 
275.8   the same right to issue subpoenas and administer oaths and 
275.9   parties to the hearing shall have the same right to subpoenas 
275.10  issued as are allowed for proceedings before the industrial 
275.11  commission.  A stenographic record must be made of all testimony 
275.12  given and other proceedings during the hearing.  If practicable, 
275.13  rules governing reception of evidence in courts shall apply to 
275.14  the hearing.  The decision of the state board must be in writing 
275.15  and the controlling facts upon which the decision is made must 
275.16  be stated in sufficient detail to apprise the parties and the 
275.17  reviewing court the basis and reason of the decision.  The 
275.18  decision must be confined to whether or not the specified 
275.19  violations or any of them existed at the date of the 
275.20  commissioner's first notice, whether the violations were 
275.21  corrected within the time permitted, and whether the violations 
275.22  require reduction of the state aids under this section. 
275.23     Subd. 6.  [VIOLATION; AID REDUCTION.] The commissioner 
275.24  shall not reduce state aids payable to the district if the 
275.25  violation specified is corrected within the time permitted, or 
275.26  if the commissioner on being notified of the district board's 
275.27  decision to dispute decides the violation does not exist, or if 
275.28  the state board decides after hearing no violation specified in 
275.29  the commissioner's notice existed at the time of the notice, or 
275.30  that the violations were corrected within the time permitted.  
275.31  Otherwise state aids payable to the district for the year in 
275.32  which the violation occurred shall be reduced as follows:  The 
275.33  total amount of state aids to which the district may be entitled 
275.34  shall be reduced in the proportion that the period during which 
275.35  a specified violation continued, computed from the last day of 
275.36  the time permitted for correction, bears to the total number of 
276.1   days school is held in the district during the year in which a 
276.2   violation exists, multiplied by 60 percent of the basic revenue, 
276.3   as defined in section 124A.22, subdivision 2, of the district 
276.4   for that year. 
276.5      Subd. 7.  [REDUCTION IN AIDS PAYABLE.] Reductions in aid 
276.6   under this section and section 124.19 must be from general 
276.7   education aid.  If there is not sufficient general education aid 
276.8   remaining to be paid for the school year in which the violation 
276.9   occurred, the reduction shall be from the other aids listed in 
276.10  section 124.155, subdivision 2, that are payable to the district 
276.11  for that year in the order in which the aids are listed in 
276.12  section 124.155, subdivision 2.  If there is not a sufficient 
276.13  amount of state aids remaining payable to the district for the 
276.14  school year in which the violation occurred to permit the full 
276.15  amount of reduction required, that part of the required 
276.16  reduction not taken from that school year's aids will be taken 
276.17  from the state aids payable to the district for the next school 
276.18  year, and the reduction will be made from the various aids 
276.19  payable for the next year in the order above specified. 
276.20     Subd. 8.  [APPEAL.] A decision of the state board under 
276.21  this section may be appealed in accordance with chapter 14.  
276.22     Subd. 9.  [NOTICE TO DISTRICT.] Any notice given to the 
276.23  board of a district will be deemed given when a copy thereof is 
276.24  mailed, registered, to the superintendent of the district, if 
276.25  there is a superintendent, and to the clerk of the board of the 
276.26  district.  If it is shown that neither the superintendent nor 
276.27  the clerk in fact received such notice in the ordinary course of 
276.28  mail, then the time for correction will be accordingly extended 
276.29  by the commissioner so that a reasonable time will be allowed 
276.30  from actual receipt of notice for correction.  If notice is sent 
276.31  by the commissioner with respect to a violation which is 
276.32  continued by the district in a succeeding year, no separate 
276.33  notice for that violation for the succeeding year will be 
276.34  required.  Proceedings initiated by such notice shall include 
276.35  any continuing violation notwithstanding that a part thereof 
276.36  occurs in a year different from the year in which it started.  
277.1   The commissioner may require reasonable proof of the time that a 
277.2   violation ceased for the determination of the amount of aids to 
277.3   be withheld.  Costs and disbursements of the review by the 
277.4   district court, exclusive of those incurred in the 
277.5   administrative proceedings, may be taxed against the losing 
277.6   party and in the event taxed against the state must be paid from 
277.7   the appropriations made to the department for the payment of 
277.8   special state aids. 
277.9      Sec. 14.  [121.971] [AID REDUCTION; LEVY REVENUE 
277.10  RECOGNITION CHANGE.] 
277.11     Subdivision 1.  [AMOUNT OF ADJUSTMENT.] Each year state 
277.12  aids and credits enumerated in subdivision 2 payable to any 
277.13  district for that fiscal year shall be adjusted, in the order 
277.14  listed, by an amount equal to (1) the amount the district 
277.15  recognized as revenue for the prior fiscal year pursuant to 
277.16  section 121.904, subdivision 4a, clause (b), minus (2) the 
277.17  amount the district recognizes as revenue for the current fiscal 
277.18  year pursuant to section 121.904, subdivision 4a, clause (b).  
277.19  For the purposes of making the aid adjustment under this 
277.20  subdivision, the amount the district recognizes as revenue for 
277.21  either the prior fiscal year or the current fiscal year pursuant 
277.22  to section 121.904, subdivision 4a, clause (b), shall not 
277.23  include any amount levied pursuant to sections 124.226, 
277.24  subdivision 9, 124.912, subdivisions 2 and 3, or a successor 
277.25  provision only for those districts affected, 124.916, 
277.26  subdivisions 1 and 2, 124.918, subdivision 6, and 124A.03, 
277.27  subdivision 2; and Laws 1992, chapter 499, articles 1, section 
277.28  20, and 6, section 36.  Payment from the permanent school fund 
277.29  shall not be adjusted pursuant to this section.  The school 
277.30  district shall be notified of the amount of the adjustment made 
277.31  to each payment pursuant to this section. 
277.32     Subd. 2.  [ADJUSTMENT TO AIDS.] (a) The amount specified in 
277.33  subdivision 1 shall be used to adjust the following state aids 
277.34  and credits in the order listed: 
277.35     (1) general education aid authorized in sections 124A.23 
277.36  and 124B.20; 
278.1      (2) secondary vocational aid authorized in section 124.573; 
278.2      (3) special education aid authorized in sections 124.32, 
278.3   124.3201, and 124.3202; 
278.4      (4) secondary vocational aid for children with a disability 
278.5   authorized in section 124.574; 
278.6      (5) aid for pupils of limited English proficiency 
278.7   authorized in section 124.273; 
278.8      (6) transportation aid authorized in section 124.225; 
278.9      (7) community education programs aid authorized in section 
278.10  124.2713; 
278.11     (8) adult education aid authorized in section 124.26; 
278.12     (9) early childhood family education aid authorized in 
278.13  section 124.2711; 
278.14     (10) capital expenditure aid authorized in sections 
278.15  124.243, 124.244, and 124.83; 
278.16     (11) school district cooperation aid authorized in section 
278.17  124.2727; 
278.18     (12) assurance of mastery aid according to section 124.311; 
278.19     (13) homestead and agricultural credit aid, disparity 
278.20  credit and aid, and changes to credits for prior year 
278.21  adjustments according to section 273.1398, subdivisions 2, 3, 4, 
278.22  and 7; 
278.23     (14) attached machinery aid authorized in section 273.138, 
278.24  subdivision 3; 
278.25     (15) alternative delivery aid authorized in section 
278.26  124.322; 
278.27     (16) special education equalization aid authorized in 
278.28  section 124.321; 
278.29     (17) special education excess cost aid authorized in 
278.30  section 124.323; 
278.31     (18) learning readiness aid authorized in section 124.2615; 
278.32  and 
278.33     (19) cooperation-combination aid authorized in section 
278.34  124.2725. 
278.35     (b) The commissioner shall schedule the timing of the 
278.36  adjustments to state aids and credits specified in subdivision 
279.1   1, as close to the end of the fiscal year as possible. 
279.2      Subd. 3.  [ACCOUNTING.] Each district shall establish an 
279.3   account which shall be designated "property tax recognition 
279.4   account".  This account shall reflect the adjustments made 
279.5   pursuant to subdivision 1 according to the fiscal year specified.
279.6      Sec. 15.  [121.972] [CONSOLIDATION; INSTRUCTION BY 
279.7   NONRESIDENTIAL DISTRICT.] 
279.8      Subdivision 1.  [AID PAYMENTS IN CASE OF ALTERATION OF 
279.9   BOUNDARIES.] Where two or more districts hereafter unite the 
279.10  state aid shall continue to be paid for the remainder of the 
279.11  school year in which the union was completed as the state aids 
279.12  were paid to the individual districts prior to the union.  
279.13     Subd. 2.  [TUITION.] Except as otherwise provided in law, 
279.14  every district that provides for the instruction of a pupil 
279.15  without a disability in a nonresident district shall pay to the 
279.16  nonresident district the actual cost of the instruction, 
279.17  excluding transportation costs.  Tuition for a nonresident pupil 
279.18  with a disability must be determined according to section 
279.19  120.17, subdivision 4.  
279.20     The resident district shall also pay to the nonresident 
279.21  district, for capital expenditures and debt service, $10 per 
279.22  actual pupil unit in average daily membership for each 
279.23  nonresident pupil unit.  However, a nonresident district may 
279.24  include in its tuition, for capital expenditures and debt 
279.25  service, an amount per actual pupil unit in average daily 
279.26  membership based on the amount that the average expenditure for 
279.27  capital expenditures and debt service determined by dividing 
279.28  such annual expenditure by the total number of pupil units in 
279.29  average daily membership in the district exceeds $10 per actual 
279.30  pupil unit.  If the nonresident district has no capital 
279.31  expenditures or debt service, it may use the money for any 
279.32  purpose for which it is authorized to spend money.  
279.33     Subd. 3.  [TUITION AS AGREED.] Notwithstanding subdivision 
279.34  2, a resident district may pay a nonresident district the amount 
279.35  for tuition that is agreed upon by the districts. 
279.36     Sec. 16.  [121.973] [PAYMENT OF AIDS AND CREDITS TO SCHOOL 
280.1   DISTRICTS.] 
280.2      Subdivision 1.  [APPLICABILITY.] This section applies to 
280.3   all aids or credits paid by the commissioner from the general 
280.4   fund to districts. 
280.5      Subd. 2.  [DEFINITIONS.] (a) The term "other district 
280.6   receipts" means payments by county treasurers pursuant to 
280.7   section 276.10, apportionments from the school endowment fund 
280.8   pursuant to section 124.09, apportionments by the county auditor 
280.9   pursuant to section 124.10, subdivision 2, and payments to 
280.10  school districts by the commissioner of revenue pursuant to 
280.11  chapter 298.  
280.12     (b) The term "cumulative amount guaranteed" means the sum 
280.13  of the following: 
280.14     (1) one-third of the final adjustment payment according to 
280.15  subdivision 6; plus 
280.16     (2) the product of 
280.17     (i) the cumulative disbursement percentage shown in 
280.18  subdivision 3; times 
280.19     (ii) the sum of 
280.20     85 percent of the estimated aid and credit entitlements 
280.21  paid according to subdivision 10; plus 
280.22     100 percent of the entitlements paid according to 
280.23  subdivisions 8 and 9; plus 
280.24     the other district receipts; plus 
280.25     the final adjustment payment according to subdivision 6.  
280.26     (c) The term "payment date" means the date on which state 
280.27  payments to districts are made by the electronic funds transfer 
280.28  method.  If a payment date falls on a Saturday, a Sunday, or a 
280.29  weekday which is a legal holiday, the payment shall be made on 
280.30  the immediately following business day.  The commissioner may 
280.31  make payments on dates other than those listed in subdivision 3, 
280.32  but only for portions of payments from any preceding payment 
280.33  dates which could not be processed by the electronic funds 
280.34  transfer method due to documented extenuating circumstances. 
280.35     Subd. 3.  [PAYMENT DATES AND PERCENTAGES.] The commissioner 
280.36  shall pay to a district on the dates indicated an amount 
281.1   computed as follows:  the cumulative amount guaranteed minus the 
281.2   sum of (a) the district's other district receipts through the 
281.3   current payment, and (b) the aid and credit payments through the 
281.4   immediately preceding payment.  For purposes of this 
281.5   computation, the payment dates and the cumulative disbursement 
281.6   percentages are as follows:  
281.7                            Payment date               Percentage 
281.8   Payment 1    July 15:                                   2.25
281.9   Payment 2    July 30:                                   4.50 
281.10  Payment 3    August 15:  the greater of (a) the final  
281.11               adjustment for the prior fiscal year for
281.12               the state paid property tax credits
281.13               established in section 273.1392, or
281.14               (b) the amount needed to provide 6.75 percent
281.15  Payment 4    August 30:                                 9.0 
281.16  Payment 5    September 15:                             12.75 
281.17  Payment 6    September 30:                             16.50
281.18  Payment 7    October 15:  the greater of (a) one-half of
281.19               the final adjustment for the prior fiscal year
281.20               for all aid entitlements except state paid
281.21               property tax credits, or (b) the amount needed to
281.22               provide 20.75 percent
281.23  Payment 8    October 30:  the greater of (a) one-half of the
281.24               final adjustment for the prior fiscal year for all
281.25               aid entitlements except state paid property
281.26               tax credits, or (b) the amount needed
281.27               to provide 25.0 percent
281.28  Payment 9    November 15:                               31.0
281.29  Payment 10   November 30:                               37.0
281.30  Payment 11   December 15:                               40.0
281.31  Payment 12   December 30:                               43.0
281.32  Payment 13   January 15:                                47.25
281.33  Payment 14   January 30:                                51.5
281.34  Payment 15   February 15:                               56.0
281.35  Payment 16   February 28:                               60.5
281.36  Payment 17   March 15:                                  65.25
282.1   Payment 18   March 30:                                  70.0
282.2   Payment 19   April 15:                                  73.0
282.3   Payment 20   April 30:                                  79.0 
282.4   Payment 21   May 15:                                    82.0 
282.5   Payment 22   May 30:                                    90.0 
282.6   Payment 23   June 20:                                  100.0
282.7      Subd. 4.  [APPEAL.] The commissioner, in consultation with 
282.8   the commissioner of finance, may revise the payment dates and 
282.9   percentages in subdivision 3 for a district if it is determined 
282.10  that there is an emergency or there are serious cash flow 
282.11  problems in the district that cannot be resolved by issuing 
282.12  warrants or other forms of indebtedness.  The commissioner shall 
282.13  establish a process and criteria for districts to appeal the 
282.14  payment dates and percentages established in subdivision 3. 
282.15     Subd. 5.  [CASH FLOW ADJUSTMENT.] During each year in which 
282.16  the cash flow low points for August, September, and October 
282.17  estimated by the commissioner of finance for invested 
282.18  treasurer's cash exceeds $360,000,000, the commissioner shall 
282.19  increase the cumulative disbursement percentages established in 
282.20  subdivision 3 to the following amounts: 
282.21  Payment 3   August 15:                         12.75 percent
282.22  Payment 4   August 30:                         15.00 percent
282.23  Payment 5   September 15:                      17.25 percent
282.24  Payment 6   September 30:                      19.50 percent
282.25  Payment 7   October 15:                        21.75 percent
282.26     Subd. 6.  [CASH FLOW WAIVER.] For any district exceeding 
282.27  its expenditure limitations under section 121.917, and if 
282.28  requested by the district, the commissioner of children, 
282.29  families, and learning, in consultation with the commissioner of 
282.30  finance, and a school district may negotiate a cash flow payment 
282.31  schedule under subdivision 3 corresponding to the district's 
282.32  cash flow needs so as to minimize the district's short-term 
282.33  borrowing needs. 
282.34     Subd. 7.  [PAYMENT LIMIT.] Subdivision 3 does not authorize 
282.35  the commissioner to pay to a district's operating funds an 
282.36  amount of state general fund cash that exceeds the sum of:  
283.1      (a) its estimated aid and credit payments for the current 
283.2   year according to subdivision 13; 
283.3      (b) its actual aid payments according to subdivisions 11 
283.4   and 12; and 
283.5      (c) the final adjustment payment for the prior year.  
283.6      Subd. 8.  [COMMISSIONER'S ASSUMPTIONS.] For purposes of 
283.7   determining the amount of state general fund cash to be paid to 
283.8   districts pursuant to subdivision 3, the commissioner shall:  
283.9      (1) assume that the payments to school districts by the 
283.10  county treasurer of revenues accruing to the fiscal year of 
283.11  receipt pursuant to section 276.11 are made in the following 
283.12  manner: 
283.13     (i) 50 percent within seven business days of each due date; 
283.14  and 
283.15     (ii) 100 percent within 14 business days of each due date; 
283.16     (2) assume that the payments to districts by the county 
283.17  treasurer of revenues accruing to the fiscal year of receipt 
283.18  pursuant to section 276.111 are made in the following manner: 
283.19     (i) 50 percent within seven business days of the October 15 
283.20  due date; 
283.21     (ii) 100 percent within 14 business days of the October 15 
283.22  due date; and 
283.23     (iii) 100 percent within ten business days of the November 
283.24  15 due date; and 
283.25     (3) assume that the payments to school districts by county 
283.26  auditors pursuant to section 124.10, subdivision 2 are made at 
283.27  the end of the months indicated in that subdivision. 
283.28     Subd. 9.  [FINAL ADJUSTMENT PAYMENT.] For all aids and 
283.29  credits paid according to subdivision 13, the final adjustment 
283.30  payment must include the amounts necessary to pay the district's 
283.31  full aid entitlement for the prior year based on actual data.  
283.32  This payment must be used to correct all estimates used for the 
283.33  payment schedule in subdivision 3.  The payment must be made as 
283.34  specified in subdivision 3.  In the event actual data are not 
283.35  available, the final adjustment payment may be computed based on 
283.36  estimated data.  A corrected final adjustment payment must be 
284.1   made when actual data are available. 
284.2      Subd. 10.  [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 
284.3   fiscal year state general fund payments for a district 
284.4   nonoperating fund must be made at 85 percent of the estimated 
284.5   entitlement during the fiscal year of the entitlement, unless a 
284.6   higher rate has been established according to section 121.904, 
284.7   subdivision 4d.  This amount shall be paid in 12 equal monthly 
284.8   installments.  The amount of the actual entitlement, after 
284.9   adjustment for actual data, minus the payments made during the 
284.10  fiscal year of the entitlement must be paid prior to October 31 
284.11  of the following school year.  The commissioner may make advance 
284.12  payments of homestead and agricultural credit aid for a 
284.13  district's debt service fund earlier than would occur under the 
284.14  preceding schedule if the district submits evidence showing a 
284.15  serious cash flow problem in the fund.  The commissioner may 
284.16  make earlier payments during the year and, if necessary, 
284.17  increase the percent of the entitlement paid to reduce the cash 
284.18  flow problem. 
284.19     Subd. 11.  [PAYMENT PERCENTAGE FOR REIMBURSEMENT AIDS.] One 
284.20  hundred percent of the special education special pupil aid 
284.21  according to section 124.32, subdivision 6, for the previous 
284.22  fiscal year must be paid in the current year. 
284.23     Subd. 12.  [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] One 
284.24  hundred percent of the aid for the current fiscal year must be 
284.25  paid for the following aids:  reimbursement for transportation 
284.26  to post-secondary institutions, according to section 123.3514, 
284.27  subdivision 8; aid for the program for adults with disabilities, 
284.28  according to section 124.2715, subdivision 2; school lunch aid, 
284.29  according to section 124.646; hearing impaired support services 
284.30  aid, according to section 121.201; Indian post-secondary 
284.31  preparation grants according to section 124.481; integration 
284.32  grants according to Laws 1989, chapter 329, article 8, section 
284.33  14, subdivision 3; and debt service aid according to section 
284.34  124.95, subdivision 5. 
284.35     Subd. 13.  [AID PAYMENT PERCENTAGE.] Except as provided in 
284.36  subdivisions 11, 12, and 14, each fiscal year, all education 
285.1   aids and credits in this chapter and chapters 123, 124A, 124B, 
285.2   124D, 125, 126, 134, and section 273.1392, shall be paid at 90 
285.3   percent for districts operating a program under section 121.585 
285.4   for grades 1 through 12 for all students in the district and 85 
285.5   percent for other districts of the estimated entitlement during 
285.6   the fiscal year of the entitlement, unless a higher rate has 
285.7   been established according to section 121.904, subdivision 4d.  
285.8   Districts operating a program under section 121.585 for grades 1 
285.9   through 12 for all students in the district must receive 85 
285.10  percent of the estimated entitlement plus an additional amount 
285.11  of general education aid equal to five percent of the estimated 
285.12  entitlement.  For all districts, the final adjustment payment, 
285.13  according to subdivision 9, must be the amount of the actual 
285.14  entitlement, after adjustment for actual data, minus the 
285.15  payments made during the fiscal year of the entitlement. 
285.16     Subd. 14.  [NONPUBLIC AIDS.] The state shall pay aid 
285.17  according to sections 123.931 to 123.947 for pupils attending 
285.18  nonpublic schools as follows: 
285.19     (1) an advance payment by November 30 equal to 85 percent 
285.20  of the estimated entitlement for the current fiscal year; and 
285.21     (2) a final payment by October 31 of the following fiscal 
285.22  year, adjusted for actual data.  
285.23     If a payment advance to meet cash flow needs is requested 
285.24  by a district and approved by the commissioner, the state shall 
285.25  pay basic transportation aid according to section 124.225 
285.26  attributable to pupils attending nonpublic schools by October 31.
285.27     Subd. 15.  [AID ADJUSTMENT FOR TRA CONTRIBUTION RATE 
285.28  CHANGE.] (a) The department must reduce general education aid or 
285.29  any other aid paid in a fiscal year directly to districts.  Any 
285.30  district or cooperative unit providing elementary or secondary 
285.31  education services that is prohibited from receiving direct 
285.32  state aids by section 124.193 or 124.32, subdivision 12, is 
285.33  exempt from this reduction.  The reduction shall equal the 
285.34  following percent of salaries paid in a fiscal year by the 
285.35  entity to members of the teachers retirement association 
285.36  established in chapter 354.  However, salaries paid to members 
286.1   of the association who are employed by a technical college shall 
286.2   be excluded from this calculation: 
286.3      (1) in fiscal year 1991, 0.84 percent, 
286.4      (2) in fiscal year 1992 and later years, the greater of 
286.5      (i) zero, or 
286.6      (ii) 4.48 percent less the additional employer contribution 
286.7   rate established under section 354.42, subdivision 5.  
286.8      (b) In fiscal year 1991, this reduction is estimated to 
286.9   equal $14,260,000. 
286.10     Subd. 16.  [EDUCATION AIDS CASH FLOW ACCOUNT.] (a) An 
286.11  education aids cash flow account is established in the state 
286.12  treasury for the purpose of ensuring the timely payment of state 
286.13  aids or credits to districts as provided in this section.  In 
286.14  the event the account balance in any appropriation from the 
286.15  general fund to the department for education aids or credits is 
286.16  insufficient to make the next scheduled payment or payments, the 
286.17  commissioner is authorized to transfer funds from the education 
286.18  aids cash flow account to the accounts that are insufficient. 
286.19     (b) For purposes of this subdivision, an account may have 
286.20  an insufficient balance only as a result of some districts being 
286.21  overpaid based on revised estimates for the relevant annual aid 
286.22  or credit entitlements.  When the overpayment amounts are 
286.23  recovered from the pertinent districts, the commissioner shall 
286.24  transfer those amounts to the education aids cash flow account.  
286.25  The commissioner shall determine when it is not feasible to 
286.26  recover the overpayments in a timely manner from the district's 
286.27  future aid payments and notify the district of the amount that 
286.28  is to be refunded to the state.  Districts are encouraged to 
286.29  make such refunds promptly.  The commissioner may approve a 
286.30  schedule for making a refund when a district demonstrates that 
286.31  its cash flow is inadequate to promptly make the refund in full. 
286.32     (c) There is annually appropriated from the general fund to 
286.33  the education aids cash flow account the additional amount 
286.34  necessary to ensure the timely payment of state aids or credits 
286.35  to districts as provided in this section.  For any fiscal year, 
286.36  the appropriation authorized in this subdivision must not exceed 
287.1   an amount equal to two-tenths of one percent of the total 
287.2   general fund appropriations in that year for education aids and 
287.3   credits.  At the close of each fiscal year, the amount of actual 
287.4   transfers plus anticipated transfers required in paragraph (b) 
287.5   must equal the authorized amounts transferred in paragraph (a) 
287.6   so that the net effect on total general fund spending for 
287.7   education aids and credits is zero. 
287.8      Sec. 17.  [121.974] [CHANGE IN PAYMENT OF AIDS AND 
287.9   CREDITS.] 
287.10     If the commissioner of finance determines that 
287.11  modifications in the payment schedule would reduce the need for 
287.12  state short-term borrowing, the commissioner shall modify 
287.13  payments to districts according to this section.  The 
287.14  modifications must begin no sooner than September 1 of each 
287.15  fiscal year, and must remain in effect until no later than May 
287.16  30 of that same fiscal year.  In calculating the payment to a 
287.17  district pursuant to section 124.195, subdivision 3, the 
287.18  commissioner may subtract the sum specified in that subdivision, 
287.19  plus an additional amount no greater than the following: 
287.20     (1) the net cash balance in the district's four operating 
287.21  funds on June 30 of the preceding fiscal year; minus 
287.22     (2) the product of $150 times the number of actual pupil 
287.23  units in the preceding fiscal year; minus 
287.24     (3) the amount of payments made by the county treasurer 
287.25  during the preceding fiscal year, pursuant to section 276.11, 
287.26  which is considered revenue for the current school year.  
287.27  However, no additional amount shall be subtracted if the total 
287.28  of the net unappropriated fund balances in the district's four 
287.29  operating funds on June 30 of the preceding fiscal year, is less 
287.30  than the product of $350 times the number of actual pupil units 
287.31  in the preceding fiscal year.  The net cash balance must include 
287.32  all cash and investments, less certificates of indebtedness 
287.33  outstanding, and orders not paid for want of funds. 
287.34     A district may appeal the payment schedule established by 
287.35  this section according to the procedures established in section 
287.36  124.195, subdivision 3a. 
288.1      Sec. 18.  [121.975] [ADJUSTMENT OF GROSS TAX CAPACITY.] 
288.2      Subdivision 1.  [ADJUSTED NET TAX CAPACITY.] (a) 
288.3   [COMPUTATION.] The department of revenue must annually conduct 
288.4   an assessment/sales ratio study of the taxable property in each 
288.5   district in accordance with the procedures in paragraphs (b) and 
288.6   (c).  Based upon the results of this assessment/sales ratio 
288.7   study, the department of revenue must determine an aggregate 
288.8   equalized net tax capacity for the various classes of taxable 
288.9   property in each district, which tax capacity shall be 
288.10  designated as the adjusted net tax capacity.  The adjusted net 
288.11  tax capacities shall be determined using the net tax capacity 
288.12  percentages in effect for the assessment year following the 
288.13  assessment year of the study.  The department of revenue must 
288.14  make whatever estimates are necessary to account for changes in 
288.15  the classification system.  The department of revenue may incur 
288.16  the expense necessary to make the determinations.  The 
288.17  commissioner of revenue may reimburse any county or governmental 
288.18  official for requested services performed in ascertaining the 
288.19  adjusted net tax capacity.  On or before March 15 annually, the 
288.20  department of revenue shall file with the chair of the tax 
288.21  committee of the house of representatives and the chair of the 
288.22  committee on taxes and tax laws of the senate a report of 
288.23  adjusted net tax capacities.  On or before June 15 annually, the 
288.24  department of revenue shall file its final report on the 
288.25  adjusted net tax capacities established by the previous year's 
288.26  assessments and the current year's net tax capacity percentages 
288.27  with the commissioner of children, families, and learning and 
288.28  each county auditor for those districts for which the auditor 
288.29  has the responsibility for determination of local tax rates.  A 
288.30  copy of the report so filed must be mailed to the clerk of each 
288.31  district involved and to the county assessor or supervisor of 
288.32  assessments of the county or counties in which each district is 
288.33  located. 
288.34     (b)  [METHODOLOGY.] In making its annual assessment/sales 
288.35  ratio studies, the department of revenue must use a methodology 
288.36  consistent with the most recent Standard on Assessment Ratio 
289.1   Studies published by the assessment standards committee of the 
289.2   International Association of Assessing Officers.  The 
289.3   commissioner of revenue shall supplement this general 
289.4   methodology with specific procedures necessary for execution of 
289.5   the study in accordance with other Minnesota laws impacting the 
289.6   assessment/sales ratio study.  The commissioner shall document 
289.7   these specific procedures in writing and shall publish the 
289.8   procedures in the State Register, but these procedures will not 
289.9   be considered "rules" pursuant to the Minnesota administrative 
289.10  procedure act.  For purposes of this section, sections 270.12, 
289.11  subdivision 2, clause (8), and 278.05, subdivision 4, the 
289.12  commissioner of revenue shall exclude from the assessment/sales 
289.13  ratio study the sale of any nonagricultural property which does 
289.14  not contain an improvement, if (1) the statutory basis on which 
289.15  the property's taxable value as most recently assessed is less 
289.16  than market value as defined in section 273.11, or (2) the 
289.17  property has undergone significant physical change or a change 
289.18  of use since the most recent assessment.  
289.19     (c)  [AGRICULTURAL LANDS.] For purposes of determining the 
289.20  adjusted net tax capacity of agricultural lands for the 
289.21  calculation of adjusted net tax capacities, the market value of 
289.22  agricultural lands must be the price for which the property 
289.23  would sell in an arms length transaction. 
289.24     (d)  [FORCED SALES.] The commissioner of revenue may 
289.25  include forced sales in the assessment/sales ratio studies if it 
289.26  is determined by the commissioner of revenue that these forced 
289.27  sales indicate true market value. 
289.28     (e)  [STIPULATED VALUES AND ABATEMENTS.] The estimated 
289.29  market value to be used in calculating sales ratios must be the 
289.30  value established by the assessor before any stipulations 
289.31  resulting from appeals by property owners and before any 
289.32  abatement unless the abatement was granted for the purpose of 
289.33  correcting mere clerical errors. 
289.34     (f)  [SALES OF INDUSTRIAL PROPERTY.] Separate sales ratios 
289.35  must be calculated for commercial property and for industrial 
289.36  property.  These two classes shall be combined only in 
290.1   jurisdictions in which there is not an adequate sample of sales 
290.2   in each class. 
290.3      Subd. 2.  [ADJUSTED NET TAX CAPACITY; GROWTH LIMIT.] In the 
290.4   calculation of adjusted net tax capacities for 1987 and each 
290.5   year thereafter, the commissioner of revenue shall not increase 
290.6   the adjusted net tax capacity of taxable property for any 
290.7   district over the adjusted net tax capacity established and 
290.8   filed with the commissioner for the immediately preceding year 
290.9   by more than the greater of (1) 19 percent of the certified 
290.10  adjusted net tax capacity established and filed with the 
290.11  commissioner of children, families, and learning for the year 
290.12  immediately preceding, or (2) 40 percent of the difference 
290.13  between the district's total adjusted net tax capacity for the 
290.14  current year calculated without the application of this 
290.15  subdivision and the district's certified adjusted net tax 
290.16  capacity established and filed with the commissioner for the 
290.17  immediately preceding year.  
290.18     Subd. 3.  [DECREASE IN IRON ORE NET TAX CAPACITY.] If in 
290.19  any year the net tax capacity of iron ore property, as defined 
290.20  in section 273.13, subdivision 31, in any district is less than 
290.21  the net tax capacity of such property in the preceding year, the 
290.22  commissioner of revenue shall redetermine for all purposes the 
290.23  adjusted net tax capacity of the preceding year taking into 
290.24  account only the decrease in net tax capacity of iron ore 
290.25  property as defined in section 273.13, subdivision 31.  If 
290.26  subdivision 2, clause (a), is applicable to the district, the 
290.27  decrease in iron ore property shall be applied to the adjusted 
290.28  net tax capacity as limited therein.  In all other respects, the 
290.29  provisions of clause (1) shall apply.  
290.30     Subd. 4.  [CAPTURED TAX CAPACITY ADJUSTMENT.] In 
290.31  calculating adjusted net tax capacity, the commissioner of 
290.32  revenue shall increase the adjusted net tax capacity of a 
290.33  district containing a tax increment financing district for which 
290.34  an election is made under section 469.1782, subdivision 1, 
290.35  clause (1).  The amount of the increase equals the captured net 
290.36  tax capacity of the tax increment financing district in the year 
291.1   preceding the first taxes payable year in which the special law 
291.2   permits collection beyond that permitted by the general law 
291.3   duration limit that otherwise would apply.  The addition applies 
291.4   beginning for aid and levy for the first taxes payable year in 
291.5   which the special law permits collection of increment beyond 
291.6   that permitted by the general law duration limit that otherwise 
291.7   would apply.  The addition continues to apply for each taxes 
291.8   payable year the district remains in effect. 
291.9      Subd. 5.  [ADJUSTED NET TAX CAPACITY; APPEALS.] If a 
291.10  district, within 30 days after receipt of a copy of a report 
291.11  filed with the commissioner made pursuant to subdivision 1 or 3, 
291.12  is of the opinion that the commissioner of revenue has made an 
291.13  error in the determination of the district's market value, it 
291.14  may appeal from the report or portion thereof relating to the 
291.15  district to the commissioner of revenue for a review and 
291.16  determination of the matters contained in the appeal.  The 
291.17  commissioner of revenue shall advise the district of the 
291.18  determination within 30 days.  If the district wishes to appeal 
291.19  the determination of the commissioner, it must file a notice of 
291.20  appeal with the tax court, as provided in subdivisions 6 to 11 
291.21  within ten days of the notice of determination from the 
291.22  commissioner.  
291.23     Subd. 6.  [NOTICE OF APPEAL.] The district must file with 
291.24  the court administrator of the tax court a notice of appeal from 
291.25  the determination of the commissioner of revenue fixing the 
291.26  market value of the district, and such notice must show the 
291.27  basis of the alleged error.  A copy of the notice of appeal must 
291.28  be served upon the commissioner of revenue, and proof of service 
291.29  must be filed with the court administrator. 
291.30     Subd. 7.  [HEARING.] Upon receipt of the notice of appeal 
291.31  the tax court must review the notice of appeal and determine 
291.32  whether it appears from the allegations and proofs therein 
291.33  contained that an error has been made in the determination by 
291.34  the commissioner of revenue of the market value of the property 
291.35  in the district.  If the court finds it probable that such an 
291.36  error has been made, it must notice the matter for hearing; 
292.1   otherwise, it must dismiss the appeal and notify the parties 
292.2   thereof.  Hearings must be set and held in the same manner as 
292.3   other hearings of the tax court are set and heard, except that 
292.4   an appeal filed under subdivision 5 must take precedence over 
292.5   other appeals pending before the court.  The attorney general 
292.6   shall represent the commissioner of revenue. The administrative 
292.7   procedure act, sections 14.09 to 14.28, 14.38, 14.44 to 14.45, 
292.8   and 14.57 to 14.69, shall apply to hearings insofar as it is 
292.9   applicable.  
292.10     Subd. 8.  [TAX COURT DETERMINATION.] The tax court must 
292.11  hear, consider, and determine such appeal, de novo upon the 
292.12  issues made by the notice of appeal, if a hearing has been 
292.13  granted thereon.  At the conclusion of the hearing, the court 
292.14  must:  (1) file findings of fact, or (2) refer the issues to the 
292.15  commissioner of revenue with instructions and recommendations 
292.16  for a determination and correction of the market value of the 
292.17  appealing district.  The decision of the tax court, if it 
292.18  decides the matter de novo, shall have the same force and effect 
292.19  as a determination by the commissioner of revenue in the first 
292.20  instance under this section, and the commissioner of revenue 
292.21  must be notified thereof.  If the matter is rereferred to the 
292.22  commissioner of revenue, a redetermination by the commissioner 
292.23  of revenue in accordance with the recommendations of the tax 
292.24  court must likewise have the same force and effect as a 
292.25  determination by it in the first instance under this section. 
292.26     Subd. 9.  [HEARING EXAMINER.] In addition to the powers and 
292.27  duties of the tax court as prescribed by chapter 271, any 
292.28  hearing ordered pursuant to this section may be heard by a 
292.29  hearing examiner in lieu of one or more judges of the tax 
292.30  court.  If a hearing is conducted by a hearing examiner, such 
292.31  hearing examiner shall exercise the same powers conferred by law 
292.32  upon one or more judges of the tax court.  The hearing examiner 
292.33  shall report to the court.  The court is authorized to make 
292.34  findings of fact based on the report of the hearing examiner in 
292.35  the same manner as is required by these provisions when the 
292.36  hearing is conducted by the court.  The tax court may employ 
293.1   hearing examiners upon such terms and conditions as it shall 
293.2   prescribe.  A hearing examiner so appointed shall be in the 
293.3   unclassified service of the state. 
293.4      Subd. 10.  [LIMITATION OF APPEALS.] A decision of the tax 
293.5   court pursuant to the terms hereof shall be final and shall not 
293.6   be subject to review by any court, except upon certiorari to the 
293.7   supreme court. 
293.8      Subd. 11.  [AIDS PENDING APPEALS.] During the pendency of 
293.9   any appeal from the commissioner of revenue evaluation, state 
293.10  aids to the appealing district must be paid on the basis of the 
293.11  evaluation subject to adjustment upon final determination of the 
293.12  appeal. 
293.13     Sec. 19.  [121.976] [COMPUTATION OF TAX RATES.] 
293.14     In computing the basic transportation tax rate under 
293.15  section 124.226, subdivision 1, and the general education tax 
293.16  rate under section 124A.23, subdivision 1, the commissioner 
293.17  shall, notwithstanding section 124.2131, subdivision 1, use 
293.18  adjusted net tax capacities that do not reflect the class rate 
293.19  reductions for seasonal residential recreational property not 
293.20  used for commercial purposes, in section 273.13, subdivision 25. 
293.21  Notwithstanding the dollar amounts specified in sections 
293.22  124.226, subdivision 1, and 124A.23, subdivision 1, the 
293.23  resulting rate shall be applied to the adjusted net tax 
293.24  capacities as computed under section 124.2131, for purposes of 
293.25  determining the basic transportation levy under section 124.226, 
293.26  subdivision 1, and the general education levy under section 
293.27  124A.23, subdivision 2.  The equalizing factor under section 
293.28  124A.02, shall be computed using the tax rate computed under 
293.29  this section. 
293.30     Sec. 20.  [121.977] [REDUCTION OF PAYMENTS TO SCHOOL 
293.31  DISTRICTS.] 
293.32     The commissioner of revenue shall reduce the sum of the 
293.33  additional transition credit, homestead and agricultural credit 
293.34  aid, and disparity reduction aid payments under section 273.1398 
293.35  made to districts by the product of:  
293.36     (1) the district's fiscal year 1984 payroll for coordinated 
294.1   plan members of the public employees retirement association 
294.2   other than technical college employees, times 
294.3      (2) the difference between the employer contribution rate 
294.4   in effect prior to July 1, 1984, and the total employer 
294.5   contribution rate in effect after June 30, 1984.  
294.6      Sec. 21.  [121.978] [AID ADJUSTMENTS.] 
294.7      Subdivision 1.  [OMISSIONS.] No adjustments to any aid 
294.8   payments made pursuant to this chapter or chapter 124A, 
294.9   resulting from omissions in district reports, except those 
294.10  adjustments determined by the legislative auditor, shall be made 
294.11  for any school year after December 30 of the next school year, 
294.12  unless otherwise specifically provided by law. 
294.13     Subd. 2.  [ABATEMENTS.] Whenever by virtue of chapter 278, 
294.14  sections 270.07, 375.192, or otherwise, the net tax capacity of 
294.15  any district for any taxable year is changed after the taxes for 
294.16  that year have been spread by the county auditor and the local 
294.17  tax rate as determined by the county auditor based upon the 
294.18  original net tax capacity is applied upon the changed net tax 
294.19  capacities, the county auditor shall, prior to February 1 of 
294.20  each year, certify to the commissioner of children, families, 
294.21  and learning the amount of any resulting net revenue loss that 
294.22  accrued to the district during the preceding year.  Each year, 
294.23  the commissioner shall pay an abatement adjustment to the 
294.24  district in an amount calculated according to the provisions of 
294.25  this subdivision.  This amount must be deducted from the amount 
294.26  of the levy authorized by section 124.912, subdivision 9.  The 
294.27  amount of the abatement adjustment must be the product of:  
294.28     (1) the net revenue loss as certified by the county 
294.29  auditor, times 
294.30     (2) the ratio of:  
294.31     (i) the sum of the amounts of the district's certified levy 
294.32  in the preceding year according to the following:  
294.33     (A) section 124A.23 if the district received general 
294.34  education aid according to that section for the second preceding 
294.35  year; 
294.36     (B) section 124.226, subdivisions 1 and 4, if the district 
295.1   received transportation aid according to section 124.225 for the 
295.2   second preceding year; 
295.3      (C) section 124.243, if the district received capital 
295.4   expenditure facilities aid according to that section for the 
295.5   second preceding year; 
295.6      (D) section 124.244, if the district received capital 
295.7   expenditure equipment aid according to that section for the 
295.8   second preceding year; 
295.9      (E) section 124.83, if the district received health and 
295.10  safety aid according to that section for the second preceding 
295.11  year; 
295.12     (F) sections 124.2713, 124.2714, and 124.2715, if the 
295.13  district received aid for community education programs according 
295.14  to any of those sections for the second preceding year; 
295.15     (G) section 124.2711, subdivision 2a, if the district 
295.16  received early childhood family education aid according to 
295.17  section 124.2711 for the second preceding year; 
295.18     (H) section 124.321, subdivision 3, if the district 
295.19  received special education levy equalization aid according to 
295.20  that section for the second preceding year; 
295.21     (I) section 124A.03, subdivision 1g, if the district 
295.22  received referendum equalization aid according to that section 
295.23  for the second preceding year; and 
295.24     (J) section 124A.22, subdivision 4a, if the district 
295.25  received training and experience aid according to that section 
295.26  for the second preceding year; to 
295.27     (ii) the total amount of the district's certified levy in 
295.28  the preceding October, plus or minus auditor's adjustments. 
295.29     Subd. 3.  [EXCESS TAX INCREMENT.] If a return of excess tax 
295.30  increment is made to a district pursuant to section 469.176, 
295.31  subdivision 2, or upon decertification of a tax increment 
295.32  district, the district's aid and levy limitations must be 
295.33  adjusted for the fiscal year in which the excess tax increment 
295.34  is paid under the provisions of this subdivision. 
295.35     (a) An amount must be subtracted from the district's aid 
295.36  for the current fiscal year equal to the product of: 
296.1      (1) the amount of the payment of excess tax increment to 
296.2   the district, times 
296.3      (2) the ratio of: 
296.4      (i) the sum of the amounts of the district's certified levy 
296.5   for the fiscal year in which the excess tax increment is paid 
296.6   according to the following: 
296.7      (A) section 124A.23, if the district received general 
296.8   education aid according to that section for the second preceding 
296.9   year; 
296.10     (B) section 124.226, subdivisions 1 and 4, if the district 
296.11  received transportation aid according to section 124.225 for the 
296.12  second preceding year; 
296.13     (C) section 124.243, if the district received capital 
296.14  expenditure facilities aid according to that section for the 
296.15  second preceding year; 
296.16     (D) section 124.244, if the district received capital 
296.17  expenditure equipment aid according to that section for the 
296.18  second preceding year; 
296.19     (E) section 124.83, if the district received health and 
296.20  safety aid according to that section for the second preceding 
296.21  year; 
296.22     (F) sections 124.2713, 124.2714, and 124.2715, if the 
296.23  district received aid for community education programs according 
296.24  to any of those sections for the second preceding year; 
296.25     (G) section 124.2711, subdivision 2a, if the district 
296.26  received early childhood family education aid according to 
296.27  section 124.2711 for the second preceding year; 
296.28     (H) section 124.321, subdivision 3, if the district 
296.29  received special education levy equalization aid according to 
296.30  that section for the second preceding year; 
296.31     (I) section 124A.03, subdivision 1g, if the district 
296.32  received referendum equalization aid according to that section 
296.33  for the second preceding year; and 
296.34     (J) section 124A.22, subdivision 4a, if the district 
296.35  received training and experience aid according to that section 
296.36  for the second preceding year; to 
297.1      (ii) the total amount of the district's certified levy for 
297.2   the fiscal year, plus or minus auditor's adjustments. 
297.3      (b) An amount must be subtracted from the district's levy 
297.4   limitation for the next levy certified equal to the difference 
297.5   between: 
297.6      (1) the amount of the distribution of excess increment; and 
297.7      (2) the amount subtracted from aid pursuant to clause (a). 
297.8      If the aid and levy reductions required by this subdivision 
297.9   cannot be made to the aid for the fiscal year specified or to 
297.10  the levy specified, the reductions must be made from aid for 
297.11  subsequent fiscal years, and from subsequent levies.  The 
297.12  district must use the payment of excess tax increment to replace 
297.13  the aid and levy revenue reduced under this subdivision. 
297.14     This subdivision applies only to the total amount of excess 
297.15  increments received by a district for a calendar year that 
297.16  exceeds $25,000. 
297.17     Sec. 22.  [121.98] [VETERANS TRAINING.] 
297.18     The commissioner shall continue the veterans training 
297.19  program.  All receipts to the veterans training revolving fund 
297.20  for the veterans training program are appropriated to the 
297.21  commissioner to pay the necessary expenses of operation of the 
297.22  program.  The department must act as the state agency for 
297.23  approving educational institutions for purposes of United States 
297.24  Code, title 38, chapter 36, relating to educational benefits for 
297.25  veterans and other persons.  The state board may adopt rules to 
297.26  fulfill its obligations as the state approving agency.  All 
297.27  federal money received for purposes of the veterans training 
297.28  program must be deposited in the veterans training revolving 
297.29  fund and is appropriated to the department for those purposes.  
297.30     Sec. 23.  [121.983] [EDUCATION IN AGRICULTURE LEADERSHIP 
297.31  COUNCIL.] 
297.32     Subdivision 1.  [ESTABLISHMENT.] The Minnesota education in 
297.33  agriculture leadership council is established to promote 
297.34  education about agriculture. 
297.35     Subd. 2.  [GOVERNANCE.] The council must be appointed by 
297.36  the governor and has 12 members.  One member must be appointed 
298.1   from each congressional district and the remaining members must 
298.2   be appointed at large.  Council terms and removal of members are 
298.3   as provided in section 15.0575.  The council is governed by an 
298.4   executive board of directors.  The council may organize and 
298.5   appoint committees as it considers necessary. 
298.6      Sec. 24.  [121.985] [MOTORCYCLE SAFETY EDUCATION PROGRAM.] 
298.7      Subdivision 1.  [ESTABLISHED; ADMINISTRATION; RULES.] A 
298.8   motorcycle safety education program is established.  The program 
298.9   shall be administered by the commissioners of public safety and 
298.10  children, families, and learning.  The program shall include but 
298.11  is not limited to training and coordination of motorcycle safety 
298.12  instructors, motorcycle safety promotion and public information, 
298.13  and reimbursement for the cost of approved courses offered by 
298.14  schools and organizations.  
298.15     Subd. 2.  [REIMBURSEMENTS.] The commissioner of children, 
298.16  families, and learning, to the extent that funds are available, 
298.17  may reimburse schools and other approved organizations offering 
298.18  approved motorcycle safety education courses for up to 50 
298.19  percent of the actual cost of the courses.  If sufficient funds 
298.20  are not available, reimbursements shall be prorated.  The 
298.21  commissioner may conduct audits and otherwise examine the 
298.22  records and accounts of schools and approved organizations 
298.23  offering the courses to insure the accuracy of the costs.  
298.24     Subd. 3.  [APPROPRIATION.] (a) All funds in the motorcycle 
298.25  safety fund created by section 171.06, subdivision 2a, are 
298.26  hereby annually appropriated to the commissioner of public 
298.27  safety to carry out the purposes of subdivisions 1 and 2.  The 
298.28  commissioner of public safety may make grants from the fund to 
298.29  the commissioner of children, families, and learning at such 
298.30  times and in such amounts as the commissioner deems necessary to 
298.31  carry out the purposes of subdivisions 1 and 2.  
298.32     (b) Of the money appropriated under paragraph (a): 
298.33     (1) In each of fiscal years 1997, 1998, and 1999, not more 
298.34  than $25,000, and in subsequent years not more than five 
298.35  percent, shall be expended to defray the administrative costs of 
298.36  carrying out the purposes of subdivisions 1 and 2. 
299.1      (2) In each of fiscal years 1997, 1998, and 1999, not more 
299.2   than 65 percent, and in subsequent years not more than 60 
299.3   percent, shall be expended for the combined purpose of training 
299.4   and coordinating the activities of motorcycle safety instructors 
299.5   and making reimbursements to schools and other approved 
299.6   organizations. 
299.7      Sec. 25.  [REPEALER.] 
299.8      Minnesota Statutes 1996, sections 121.11, subdivisions 5, 
299.9   7c, 7d, 12, and 14; 121.1115; 121.155; 121.166; 121.17; 121.203; 
299.10  121.207; 121.585; 121.602; 121.608; 121.611; 121.615; 121.70; 
299.11  121.701; 121.702; 121.703; 121.704; 121.705; 121.706; 121.707; 
299.12  121.708; 121.709; 121.710; 121.831; 121.835; 121.8355; 121.85; 
299.13  121.88; 121.882; 121.885; 121.904; 121.906; 121.908; 121.911; 
299.14  121.912; 121.9121; 121.914; 121.915; 121.917; 121.935; are 
299.15  repealed. 
299.16                             ARTICLE 5
299.17                            CHAPTER 122
299.18     Section 1.  Minnesota Statutes 1996, section 122.01, is 
299.19  amended to read: 
299.20     122.01 [DEFINITIONS.] 
299.21     Subdivision 1.  [DEFINITIONS.] For purposes of this 
299.22  chapter, the words defined in section 120.02, have the same 
299.23  meaning. 
299.24     Subd. 2.  [TEACHER.] For purposes of this chapter, "teacher"
299.25  means a teacher as defined in section 125.12, subdivision 1. 
299.26     Sec. 2.  Minnesota Statutes 1996, section 122.02, is 
299.27  amended to read: 
299.28     122.02 [CLASSES, NUMBER.] 
299.29     School Districts shall be classified as common, 
299.30  independent, or special districts, each of which is a public 
299.31  corporation.  Each district shall be known by its classification 
299.32  and each shall be assigned a number by the commissioner so that 
299.33  its title will be .......... school district number ..... . 
299.34     Sec. 3.  Minnesota Statutes 1996, section 122.03, is 
299.35  amended to read: 
299.36     122.03 [ASSIGNMENT OF IDENTIFICATION NUMBERS.] 
300.1      Subdivision 1.  [ASSIGNMENT.] The commissioner of children, 
300.2   families, and learning shall, by order, assign an identification 
300.3   number to each district.  The assignment shall be made so that 
300.4   each classified district has an exclusive identification number 
300.5   which is exclusive to it in its classification. 
300.6      Subd. 2.  [NOTIFICATION.] Upon making the assignment of an 
300.7   identification number, the commissioner of children, families, 
300.8   and learning shall forthwith notify the clerk of the district 
300.9   and the county auditors of the counties in which any part of the 
300.10  district lies of the identification number assigned.  A 
300.11  certified copy of the order may be recorded in the office of the 
300.12  county recorder to show the new legal name of the district. 
300.13     Subd. 3.  [LEGAL IDENTIFICATION.] From and after the making 
300.14  of the order, The legal identification of the district shall 
300.15  become and be as assigned the assigned identification number.  
300.16  All records, correspondence, reports and references to the 
300.17  district shall must thereafter refer to the district by its 
300.18  proper title as assigned. 
300.19     Subd. 4.  [USE OF NUMBERS.] A number once assigned to a 
300.20  district under section 122.02 or under any prior law, shall must 
300.21  not be used again to identify any district in the same 
300.22  classification.  As the need arises, and as required by law, as 
300.23  new districts are formed, the commissioner of children, 
300.24  families, and learning shall assign unused numbers as 
300.25  identification.  When numbered districts are dissolved, the 
300.26  numbers assigned to them will not be reassigned to any other 
300.27  district. 
300.28     Sec. 4.  Minnesota Statutes 1996, section 122.21, is 
300.29  amended to read: 
300.30     122.21 [DETACHMENT AND ANNEXATION OF LAND.] 
300.31     Subdivision 1.  [DETACHMENT AND ANNEXATION.] The owner of 
300.32  land which adjoins any independent district, and whose land is 
300.33  not in a special district may petition the county board of the 
300.34  county in which the greater part of the area proposed for 
300.35  detachment and annexation lies to detach all or any part of the 
300.36  land together with the intervening lands as defined 
301.1   in subparagraph paragraph (b) below, from the district it now is 
301.2   in, and to attach it, together with such intervening land, to 
301.3   the adjoining district.  For purpose of this section, land is 
301.4   adjoining a school district if: 
301.5      (a) The boundary of the area proposed for detachment and 
301.6   annexation is the same as the district boundary to which 
301.7   attachment is sought at any point, including corners, or 
301.8      (b) The area proposed for detachment and annexation is 
301.9   separated at any point from the district to which annexation is 
301.10  sought by not more than one-half mile and the intervening land 
301.11  is vacant and unoccupied or is owned by one or more of the 
301.12  following:  The United States, or the state of Minnesota or any 
301.13  of its political subdivisions, or an owner who is unknown or 
301.14  cannot be found or 
301.15     (c) The area proposed by a land owner for detachment and 
301.16  annexation is adjoining, (as defined in subparagraphs 
301.17  paragraphs (a) and (b) above), any land proposed for detachment 
301.18  from and annexation to the same district in another pending 
301.19  petition. 
301.20     Subd. 2.  [PETITION.] The petition shall must contain: 
301.21     (a) A correct description of the area proposed for 
301.22  detachment and annexation, together with such including 
301.23  supporting data with regard to regarding location and title to 
301.24  land as will establish facts conformable to subdivision 1 to 
301.25  establish that the land is adjoining a district. 
301.26     (b) The reasons for the proposed change with facts showing 
301.27  that the granting of the petition will not reduce the size of 
301.28  any district to less than four sections, unless the district is 
301.29  not operating a school within the district. 
301.30     (c) Consent to the petition, endorsed thereon at any time 
301.31  before the hearing by the board of the district from which the 
301.32  area is to be removed, if, at the time of the filing of the 
301.33  petition, any part of the area proposed for detachment is part 
301.34  of a district which maintains and operates a secondary school 
301.35  within the district.  Before the hearing, the consent of the 
301.36  board of the district in which the area proposed for detachment 
302.1   lies must be endorsed on the petition. 
302.2      (d) An identification of the district to which annexation 
302.3   is sought. 
302.4      (e) Such Other information as the petitioners may desire to 
302.5   affix. 
302.6      (f) An acknowledgment by the petitioner. 
302.7      Subd. 3.  [FILING PETITION.] The petition shall must be 
302.8   filed with the auditor who shall present it to the county board 
302.9   at its next meeting.  At the meeting, the county board shall 
302.10  must fix a time and place for hearing the petition, which time.  
302.11  The hearing shall be not more than 60 nor less than ten days 
302.12  from the date of the meeting.  The auditor shall forthwith serve 
302.13  notice of the hearing on each district directly affected by the 
302.14  petition, by mail addressed to the clerk.  If any area affected 
302.15  by the petition is in another county, the auditor shall mail a 
302.16  notice of hearing to the auditor of such county and shall also 
302.17  give one week's published notice of the hearing in the county 
302.18  wherein in which the hearing is to be held, and ten days' posted 
302.19  notice in each school district affected.  Such posted and 
302.20  published notice may combine pending petitions.  At the hearing 
302.21  on the petition, the county board shall must receive and hear 
302.22  any evidence for or against the petition.  The hearing may be 
302.23  adjourned from time to time. 
302.24     Subd. 4.  [ORDER.] Within six months of the time when the 
302.25  petition was filed filing of the petition, the county board 
302.26  shall must issue its order either granting or denying the 
302.27  petition , unless all or part.  If any of the land area 
302.28  described in the petition is included in a plat for 
302.29  consolidation or combination which has been approved by the 
302.30  commissioner of children, families, and learning in which event, 
302.31  then no order may be issued while consolidation or combination 
302.32  proceedings are pending.  No order shall be issued which results 
302.33  in attaching to a district any territory not adjoining that 
302.34  district, as defined in subdivision 1(a).  No order shall be 
302.35  issued which reduces the size of any district to less than four 
302.36  sections unless the district is not operating a school within 
303.1   the district.  The order may be made effective at have a 
303.2   deferred effective date not later than July 1 next immediately 
303.3   following its issuance.  If the petition be is granted, the 
303.4   auditor shall transmit a certified copy to the commissioner.  
303.5   Failure to issue an order within six months of the filing of the 
303.6   petition or termination of proceedings upon an approved 
303.7   consolidation plat, whichever is later, is a denial of the 
303.8   petition. 
303.9      Subd. 5.  [MODIFICATION OF RECORDS.] Upon receipt of the 
303.10  order, the commissioner shall forthwith modify the records and 
303.11  any plats and petitions and proceedings involving districts 
303.12  affected by such order presently before the commissioner for 
303.13  action or record, to conform to the order. 
303.14     Subd. 6.  [TAXABLE PROPERTY.] Upon the effective date of 
303.15  the order, the detachment and annexation ordered therein is 
303.16  effected.  All taxable property in the area so detached and 
303.17  annexed remains taxable for payment of any school purpose 
303.18  obligations theretofore authorized by or on that date 
303.19  outstanding already authorized by or outstanding on the 
303.20  effective date of the order against the district from which 
303.21  detached.  Such property is not by virtue of the order 
303.22  relieved The order does not relieve such property from the 
303.23  obligation of any bonded debt theretofore already incurred to 
303.24  which it was subject prior to the order.  All taxable property 
303.25  in the area so detached and annexed is taxable for payment of 
303.26  any school district obligations authorized on or subsequent to 
303.27  the effective date of the order by the district to which 
303.28  annexation is made. 
303.29     Sec. 5.  Minnesota Statutes 1996, section 122.22, is 
303.30  amended to read: 
303.31     122.22 [DISSOLUTION AND ATTACHMENT.] 
303.32     Subdivision 1.  [DISSOLUTION.] Any district may be 
303.33  dissolved and the territory be attached to other districts by 
303.34  proceeding in accordance with this section. 
303.35     Subd. 2.  [PROCEEDINGS.] Proceedings under this section may 
303.36  be instituted by: 
304.1      (a) Resolution of the county board of the county containing 
304.2   the greatest land area of the district proposed for dissolution 
304.3   when the district is dissolved pursuant to sections 122.32 to 
304.4   122.52. 
304.5      (b) Petition executed by a majority of the eligible voters 
304.6   of the district proposed for dissolution and addressed to the 
304.7   county board of the county containing the greatest land area of 
304.8   the district. 
304.9      (c) Certification by the clerk of the district proposed for 
304.10  dissolution to the county board of the county containing the 
304.11  greatest land area of the district to the effect that a majority 
304.12  of votes cast at an election were in favor of dissolving the 
304.13  district. 
304.14     Subd. 3.  [RESOLUTION.] A resolution adopted pursuant to 
304.15  subdivision 2(a) shall contain findings of necessary 
304.16  jurisdictional facts and shall set a date for hearing.  The 
304.17  hearing shall be not less than 20 nor more than 60 days from the 
304.18  date of the resolution.  
304.19     Subd. 4.  [PETITION.] A petition executed pursuant to 
304.20  subdivision 2(b) shall be filed with the auditor.  It shall The 
304.21  petition must contain the following: 
304.22     (a) A statement that petitioners desire proceedings 
304.23  instituted leading to dissolution of the district and other 
304.24  provisions made for the education of the inhabitants of the 
304.25  territory and that petitioners are eligible voters of the 
304.26  district; 
304.27     (b) An identification of the district; and 
304.28     (c) The reasons supporting the petition which may include 
304.29  recommendations as to disposition of territory to be dissolved.  
304.30  The recommendations are advisory in nature only and are not 
304.31  binding on any petitioners or county board for any purpose. 
304.32     The persons circulating the petition shall attach their 
304.33  affidavit swearing or affirming that the persons executing the 
304.34  petition are eligible voters, as defined in section 201.014, of 
304.35  the district and that they signed in the presence of one of the 
304.36  circulators. 
305.1      The auditor shall present the petition to the county board 
305.2   at its next meeting.  At that meeting, the county board shall 
305.3   must determine a date for a hearing.  The hearing shall be not 
305.4   less than 20 nor more than 60 days from the date of that meeting.
305.5      Subd. 5.  [CERTIFICATION.] Certification executed pursuant 
305.6   to subdivision 2(c) shall must be filed with the auditor.  It 
305.7   shall The certification must contain the following: 
305.8      (a) A copy of the resolution initiating the election; 
305.9      (b) A copy of the notice of election with an affidavit of 
305.10  publication or posting; 
305.11     (c) The question voted on; 
305.12     (d) The results of the election by number of votes cast for 
305.13  and number against the question; and 
305.14     (e) If an advisory ballot is taken on annexation, the 
305.15  question voted on and number of ballots cast for and against the 
305.16  proposal.  
305.17     The auditor shall present the certification to the county 
305.18  board at its next meeting.  At that meeting, the county board 
305.19  shall must determine a date for a hearing.  The hearing shall be 
305.20  not less than 20 nor more than 60 days from the date of that 
305.21  meeting. 
305.22     Subd. 6.  [HEARING.] When a hearing is ordered under this 
305.23  section, the auditor shall have give ten days' posted notice of 
305.24  the hearing in the district proposed for dissolution, one week's 
305.25  published notice in the county, and ten days' mailed notice to 
305.26  the clerk of the district proposed for dissolution and to the 
305.27  clerk of each adjoining district and to the commissioner.  
305.28  If all or any part of the district proposed for dissolution or 
305.29  any adjoining district lies in another county, the auditor shall 
305.30  forthwith upon establishment of the hearing date, mail notice of 
305.31  the hearing to the auditor of each county so situated upon 
305.32  establishment of the hearing date. 
305.33     Subd. 7.  [CONSOLIDATION PROCEEDING.] No order dissolving a 
305.34  district may be issued by the county board if the district to be 
305.35  dissolved is included in a plat for consolidation which has been 
305.36  approved by the state board of education and upon which plat 
306.1   final action has not been taken unless all of the district to be 
306.2   dissolved and all of the district or districts to which 
306.3   attachment is proposed are included in the approved plat. 
306.4      Subd. 7a.  [INFORMATION TO COUNTY AUDITOR.] (a) Before the 
306.5   day of a hearing ordered pursuant to this section, each district 
306.6   adjoining the district proposed for dissolution shall must 
306.7   provide the following information and resolution to the county 
306.8   auditor of the county containing the greatest land area of the 
306.9   district proposed for dissolution:  
306.10     (1) The outstanding bonded debt, outstanding energy loans 
306.11  made according to section 216C.37 or sections 298.292 to 
306.12  298.298, and the capital loan obligation of the district; 
306.13     (2) The net tax capacity of the district; 
306.14     (3) The most current school tax rates for the district, 
306.15  including any referendum, discretionary, or other optional 
306.16  levies being assessed currently and the expected duration of the 
306.17  levies; 
306.18     (4) A resolution passed by the school board of the district 
306.19  stating that if taxable property of the dissolved district is 
306.20  attached to it, one of the following requirements is imposed:  
306.21     (i) the taxable property of the dissolving district which 
306.22  is attached to its district shall not be liable for the bonded 
306.23  debt, outstanding energy loans made according to section 216C.37 
306.24  or sections 298.292 to 298.298, or the capital loan obligation 
306.25  of the district which existed as of the time of the attachment; 
306.26     (ii) the taxable property of the dissolving district which 
306.27  is attached to its district shall be liable for the payment of 
306.28  the bonded debt, outstanding energy loans made according to 
306.29  section 216C.37 or sections 298.292 to 298.298, or the capital 
306.30  loan obligation of the district which existed as of the time of 
306.31  the attachment in the proportion which the net tax capacity of 
306.32  that part of the dissolving district which is included in the 
306.33  newly enlarged district bears to the net tax capacity of the 
306.34  entire district as of the time of attachment; or 
306.35     (iii) the taxable property of the dissolving district which 
306.36  is attached to its district shall be liable for some specified 
307.1   portion of the amount that could be requested pursuant to 
307.2   subclause (ii).  
307.3      (b) An apportionment pursuant to paragraph (a), clause (4), 
307.4   subclause (ii) or (iii), shall be made by the county auditor of 
307.5   the county containing the greatest land area of the district 
307.6   proposed for transfer.  
307.7      (c) An apportionment of bonded indebtedness, outstanding 
307.8   energy loans made according to section 216C.37 or sections 
307.9   298.292 to 298.298, or capital loan obligation pursuant to 
307.10  paragraph (a), clause (4), subclause (ii) or (iii), shall not 
307.11  relieve any property from any tax liability for payment of any 
307.12  bonded or capital obligation, but taxable property in a district 
307.13  enlarged pursuant to this section becomes primarily liable for 
307.14  the payment of the bonded debt, outstanding energy loans made 
307.15  according to section 216C.37 or sections 298.292 to 298.298, or 
307.16  capital loan obligation to the extent of the proportion stated.  
307.17     Subd. 8.  [ORDER.] Within 90 days of the date set for the 
307.18  original hearing or within 30 days of the termination of a 
307.19  consolidation proceeding which stays the order under subdivision 
307.20  7, the county board may issue its order: 
307.21     (a) Dismissing the proceedings; or 
307.22     (b) Providing for the dissolution of the district and the 
307.23  annexation of the territory to adjoining districts, or the 
307.24  entire district as a unit may be attached to and become part of 
307.25  a district which maintains a secondary school located within the 
307.26  same high school area if there is no intervening district 
307.27  maintaining a secondary school. 
307.28     If no order is issued within the limited time, the 
307.29  proceedings are dismissed.  
307.30     If an order is issued pursuant to clause (b) the order is a 
307.31  final order, unless an election on the order is required 
307.32  pursuant to subdivision 11.  
307.33     Subd. 9.  [ORDER FOR DISSOLUTION.] (a) An order issued 
307.34  under subdivision 8, clause (b), shall must contain the 
307.35  following: 
307.36     (1) A statement that the district is dissolved unless the 
308.1   results of an election held pursuant to subdivision 11 provide 
308.2   otherwise; 
308.3      (2) A description by words or plat or both showing the 
308.4   disposition of territory in the district to be dissolved; 
308.5      (3) The outstanding bonded debt, outstanding energy loans 
308.6   made according to section 216C.37 or sections 298.292 to 
308.7   298.298, and the capital loan obligation of the district to be 
308.8   dissolved; 
308.9      (4) A statement requiring the fulfillment of the 
308.10  requirements imposed by each adjoining district to which 
308.11  territory in the dissolving district is to be attached regarding 
308.12  the assumption of its outstanding preexisting bonded 
308.13  indebtedness by any territory from the dissolving district which 
308.14  is attached to it; 
308.15     (5) An effective date for the order.  The effective date 
308.16  shall be July 1 of an odd-numbered year unless the school board 
308.17  and the exclusive representative of the teachers in each 
308.18  affected district agree to an effective date of July 1 of an 
308.19  even-numbered year.  The agreement must be in writing and 
308.20  submitted to the commissioner of children, families, and 
308.21  learning; and 
308.22     (6) Other information the county board may desire to 
308.23  include. 
308.24     (b) The auditor shall within ten days from its issuance 
308.25  serve a copy of the order by mail upon the clerk of the district 
308.26  to be dissolved and upon the clerk of each district to which the 
308.27  order attaches any territory of the district to be dissolved and 
308.28  upon the auditor of each other county in which all or any part 
308.29  of the district to be dissolved or any district to which the 
308.30  order attaches territory lies, and upon the commissioner. 
308.31     Subd. 11.  [APPROVAL OR ORDER.] If the proceedings were 
308.32  instituted by petition, under subdivision 2(b), or by election, 
308.33  under subdivision 2(c) and an advisory recommendation was made 
308.34  in the petition or an advisory ballot taken at the election, as 
308.35  to annexation requested, and if the order makes a different 
308.36  provision for annexation than requested, then the order must be 
309.1   approved by a majority of those voting on the question at an 
309.2   election to be called in the district to be dissolved, under 
309.3   subdivision 13.  The question voted on shall be: 
309.4      "Shall the order of the county board of ..... county, dated 
309.5   ..... providing for the dissolution of this school district be 
309.6   approved?"  Yes ..... No .....  
309.7      Subd. 13.  [ELECTION DATE.] If an election is required 
309.8   under subdivision 11, then before the expiration of a 45 day 
309.9   period after the date of the order for dissolution and 
309.10  attachment, the auditor shall set a date and call the election 
309.11  by filing a written order therefor for the election and serving 
309.12  a copy thereof of the order personally or by mail on the clerk 
309.13  of the district in which the election is to be held.  The date 
309.14  shall be not less than 15 nor more than 30 days after the date 
309.15  of the order, upon which date a special election shall be held 
309.16  in the district proposed for dissolution.  The auditor 
309.17  shall cause post and publish notice of the election to be posted 
309.18  and published according to law.  Upon receipt of the notice, the 
309.19  board shall conduct the election. 
309.20     Subd. 14.  [ELECTION RESULTS.] The board must certify the 
309.21  results of the election shall be certified by the board to the 
309.22  auditor.  If a majority of all votes cast on the question at the 
309.23  election approve the order, the order becomes final and 
309.24  effective as of the date specified in the order.  Each person 
309.25  served with the order shall be so notified.  If a majority of 
309.26  all votes cast on the question disapprove the order, the 
309.27  proceedings are dismissed, and the order becomes void. 
309.28     Subd. 18.  [BONDED DEBT.] The bonded debt of a district 
309.29  dissolved under provisions of this section shall must be paid 
309.30  according to levies made therefor for that debt under provision 
309.31  of chapter 475.  The obligation of the taxable property in the 
309.32  dissolved district with reference to the payment of such bonded 
309.33  debt is not affected by this section. 
309.34     Subd. 20.  [CURRENT ASSETS AND LIABILITIES.] If the 
309.35  dissolved district is not divided by the order of dissolution 
309.36  and attachment, all of its current assets and liabilities, real 
310.1   and personal, and all its legally valid and enforceable claims 
310.2   and contract obligations shall must pass to the district to 
310.3   which it is attached, except as provided in section 122.532.  If 
310.4   the district to be dissolved is divided by the order of 
310.5   dissolution and attachment, the commissioner shall, within 30 
310.6   days after the order is issued, issue an order for the 
310.7   distribution of its current assets and liabilities, real and 
310.8   personal.  If the commissioner's order provides for the transfer 
310.9   of an interest in real estate to a district, this order may also 
310.10  impose a dollar amount as a claim against that district in favor 
310.11  of other districts, and this claim shall be paid and enforced in 
310.12  the manner provided by law for the payment of judgments against 
310.13  a district.  The obligations of districts to the teachers 
310.14  employed by the dissolved district shall be governed by the 
310.15  provisions of section 122.532. 
310.16     Subd. 21.  [LEVIES.] (a) In the year prior to the effective 
310.17  date of the dissolution of a district, the school board of a 
310.18  district to which all of the dissolving district is to be 
310.19  attached may adopt a resolution directing the school board of 
310.20  the dissolving district to certify levies for general education, 
310.21  basic transportation, and capital expenditure equipment and 
310.22  facilities in an amount not to exceed the maximum amount 
310.23  authorized for the dissolving district for taxes payable in the 
310.24  year the dissolution is effective.  If the dissolving district 
310.25  is to be attached to more than one school district, the boards 
310.26  of the districts to which the dissolving district is to be 
310.27  attached may adopt a joint resolution that accomplishes the 
310.28  purpose in this paragraph. 
310.29     (b) Notwithstanding any other law to the contrary, upon 
310.30  receipt of a resolution under paragraph (a), the board of the 
310.31  dissolving district must certify levies in the amounts specified 
310.32  in the resolution for taxes payable in the year the dissolution 
310.33  is effective. 
310.34     Sec. 6.  Minnesota Statutes 1996, section 122.23, is 
310.35  amended to read: 
310.36     122.23 [CONSOLIDATION.] 
311.1      Subdivision 1.  [CONSOLIDATION.] Common or independent 
311.2   districts or parts thereof, or any combination of the foregoing 
311.3   may consolidate into a single independent district by 
311.4   proceedings taken in accordance with this section.  The proposed 
311.5   new district must contain at least 18 sections of land. 
311.6      Subd. 2.  [RESOLUTION.] (a) Upon a resolution of a school 
311.7   board in the area proposed for consolidation or upon receipt of 
311.8   a petition therefor executed by 25 percent of the voters 
311.9   resident in the area proposed for consolidation or by 50 such 
311.10  voters, whichever is lesser less, the county auditor of the 
311.11  county which contains the greatest land area of the proposed new 
311.12  district shall forthwith cause a plat to be prepared prepare a 
311.13  plat.  The resolution or petition shall must show the 
311.14  approximate area proposed for consolidation.  
311.15     (b) The resolution or petition may propose the following: 
311.16     (1) that the bonded debt of the component districts will be 
311.17  paid according to the levies previously made for that debt under 
311.18  chapter 475, or that the taxable property in the newly created 
311.19  district will be taxable for the payment of all or a portion of 
311.20  the bonded debt previously incurred by any component district as 
311.21  provided in subdivision 16; 
311.22     (2) that obligations for a capital loan or an energy loan 
311.23  made according to section 216C.37 or sections 298.292 to 298.298 
311.24  outstanding in a preexisting district as of the effective date 
311.25  of consolidation remain solely with the preexisting district 
311.26  that obtained the loan, or that all or a portion of the loan 
311.27  obligations will be assumed by the newly created or enlarged 
311.28  district and paid by the newly created or enlarged district on 
311.29  behalf of the preexisting district that obtained the loan; 
311.30     (3) that referendum levies previously approved by voters of 
311.31  the component districts pursuant to section 124A.03, subdivision 
311.32  2, or its predecessor provision, be combined as provided in 
311.33  section 122.531, subdivision 2a or 2b, or that the referendum 
311.34  levies be discontinued; 
311.35     (4) that the board of the newly created district consist of 
311.36  the number of members determined by the component districts, 
312.1   which may be six or seven members elected according to 
312.2   subdivision 18, or any number of existing school board members 
312.3   of the component districts, and a method to gradually reduce the 
312.4   membership to six or seven; or 
312.5      (5) that separate election districts from which school 
312.6   board members will be elected, the boundaries of these election 
312.7   districts, and the initial term of the member elected from each 
312.8   of these election districts be established. 
312.9      The resolution must provide for election of board members 
312.10  from one of the following options:  single-member districts; 
312.11  multimember districts; at large; or a combination of these 
312.12  options.  The resolution must include a plan for the orderly 
312.13  transition to the option chosen. 
312.14     A group of districts that operates a cooperative secondary 
312.15  facility funded under section 124.494 may also propose a 
312.16  temporary school board structure as specified in section 
312.17  124.494, subdivision 7. 
312.18     If a county auditor receives more than one request for a 
312.19  plat and the requests involve parts of identical districts, the 
312.20  auditor shall forthwith prepare a plat which in the auditor's 
312.21  opinion best serves the educational interests of the inhabitants 
312.22  of the districts or areas affected.  
312.23     (c) The plat shall must show: 
312.24     (1) Boundaries of the proposed district, as determined by 
312.25  the county auditor, and present district boundaries, 
312.26     (2) The location of school buildings in the area proposed 
312.27  as a new district and the location of school buildings in 
312.28  adjoining districts, 
312.29     (3) The boundaries of any proposed separate election 
312.30  districts, and 
312.31     (4) Other pertinent information as determined by the county 
312.32  auditor. 
312.33     Subd. 2a.  [COUNTY AUDITOR.] The county auditor of the 
312.34  county containing the greatest land area of the area proposed to 
312.35  be consolidated shall perform the duties provided by this 
312.36  section. 
313.1      Subd. 2b.  [ORDERLY REDUCTION PLAN.] As part of the 
313.2   resolution required by subdivision 2, the school board must 
313.3   prepare a plan for the orderly reduction of the membership of 
313.4   the board to six or seven members and a plan for the 
313.5   establishment or dissolution of election districts.  The plan 
313.6   must be submitted to the secretary of state for review and 
313.7   comment. 
313.8      Subd. 3.  [SUPPORTING STATEMENT.] The county auditor shall 
313.9   prepare a supporting statement to accompany the plat shall be 
313.10  prepared by the county auditor.  The statement shall must 
313.11  contain: 
313.12     (a) The adjusted net tax capacity of property in the 
313.13  proposed district, 
313.14     (b) If a part of any district is included in the proposed 
313.15  new district, the adjusted net tax capacity of the property and 
313.16  the approximate number of pupils residing in the part of the 
313.17  district included shall be shown separately and the adjusted net 
313.18  tax capacity of the property and the approximate number of 
313.19  pupils residing in the part of the district not included shall 
313.20  also be shown, 
313.21     (c) The reasons for the proposed consolidation, including a 
313.22  statement that at the time the plat is submitted to the state 
313.23  board of education, no proceedings are pending to dissolve any 
313.24  district involved in the plat unless all of the district to be 
313.25  dissolved and all of each district to which attachment is 
313.26  proposed is included in the plat, 
313.27     (d) A statement showing that the jurisdictional fact 
313.28  requirements of subdivision 1 are met by the proposal, 
313.29     (e) Any proposal contained in the resolution or petition 
313.30  regarding the disposition of the bonded debt, outstanding energy 
313.31  loans made according to section 216C.37 or sections 298.292 to 
313.32  298.298, capital loan obligations, or referendum levies of 
313.33  component districts, 
313.34     (f) Any other information the county auditor desires to 
313.35  include, and 
313.36     (g) The signature of the county auditor. 
314.1      Subd. 4.  [PLAT SUBMISSION.] The county auditor shall 
314.2   submit the plat and supporting statement to the commissioner and 
314.3   a true copy of each to the auditor of each county containing any 
314.4   land area of the proposed new district. 
314.5      Subd. 5.  [COUNTY BOARD.] Upon receipt of a plat and the 
314.6   supporting statement, each county's auditor shall immediately 
314.7   notify the county's board.  After such notification, and during 
314.8   the pendency of proceedings under the plat and supporting 
314.9   statement or for a period of six months, whichever is shorter, 
314.10  no action may be taken by the county board under any other law 
314.11  to modify the boundary of any district if any part of the 
314.12  district is included in an area proposed for consolidation. 
314.13     Subd. 6.  [COMMISSIONER.] The commissioner shall, upon 
314.14  receipt of a plat, forthwith examine it and approve, modify or 
314.15  reject it.  The commissioner shall also approve or reject any 
314.16  proposal contained in the resolution or petition regarding the 
314.17  disposition of the bonded debt of the component districts.  If 
314.18  the plat shows the boundaries of proposed separate election 
314.19  districts and if the commissioner modifies the plat, the 
314.20  commissioner shall also modify the boundaries of the proposed 
314.21  separate election districts.  The commissioner shall conduct a 
314.22  hearing at the nearest county seat in the area upon reasonable 
314.23  notice to the affected districts and county boards if requested 
314.24  within 20 days after submission of the plat.  Such a hearing may 
314.25  be requested by The board of any affected district, a county 
314.26  board of commissioners, or the petition of 20 resident voters 
314.27  living within the area proposed for consolidation may request 
314.28  such a hearing.  The commissioner shall endorse on the plat 
314.29  action regarding any proposal for the disposition of the bonded 
314.30  debt of component districts and the reasons for these actions 
314.31  and.  Within 60 days of the date of the receipt of the plat, the 
314.32  commissioner shall return it to the county auditor who submitted 
314.33  it.  The commissioner shall furnish a copy of that plat, and the 
314.34  supporting statement and its endorsement to the auditor of each 
314.35  county containing any land area of the proposed new district.  
314.36  If land area of a particular county was included in the plat, as 
315.1   submitted by the county auditor, and all of such land area is 
315.2   excluded in the plat as modified and approved, the commissioner 
315.3   shall also furnish a copy of the modified plat, supporting 
315.4   statement, and any endorsement to the auditor of such county. 
315.5      Subd. 7.  [NOTICE TO BOARD.] Upon receipt of an approved 
315.6   plat, the county auditor shall forthwith notify the board of any 
315.7   district, all or part of whose land is included in the proposed 
315.8   new district. 
315.9      Subd. 8.  [BOARD ADOPTION.] The board of any independent 
315.10  district maintaining a secondary school, the board of any common 
315.11  district maintaining a secondary school, all or part of whose 
315.12  land is included in the proposed new district, shall must, 
315.13  within 45 days of the approval of the plat by the commissioner, 
315.14  either adopt or reject the plan as proposed in the approved 
315.15  plat.  If the board of any such district entitled to act on the 
315.16  petition rejects the proposal, the proceedings are terminated 
315.17  and dismissed.  If any board fails to act on the plat within the 
315.18  time allowed, the proceedings are terminated. 
315.19     Subd. 9.  [MULTIPLE DISTRICTS; APPROVAL.] If the approved 
315.20  plat contains land area in more than one independent district 
315.21  maintaining a secondary school, or common district maintaining a 
315.22  secondary school, and if each board entitled to act on the plat 
315.23  approves the plat, each board shall cause publish notice of its 
315.24  action to be published at least once in its official newspaper.  
315.25  If all of the school boards entitled to act on the plat call, by 
315.26  resolution, for an election on the question, or if five percent 
315.27  of the eligible voters of any such district petition the clerk 
315.28  of the district, within 30 days after the publication of the 
315.29  notice, for an election on the question, the consolidation shall 
315.30  not become effective until approved by a majority vote in the 
315.31  district at an election held in the manner provided in 
315.32  subdivisions 11, 12, and 13. 
315.33     Subd. 10.  [APPROVAL BY RESIDENTS.] If an approved plat 
315.34  contains land area in any district not entitled to act on 
315.35  approval or rejection of the plat by action of its board, the 
315.36  plat may be approved by the residents of the land area within 60 
316.1   days of approval of plat by the commissioner in the following 
316.2   manner: 
316.3      A petition calling upon the county auditor to call and 
316.4   conduct an election on the question of adoption or rejection of 
316.5   the plat may be circulated in the land area by any person 
316.6   residing in the area.  Upon the filing of the petition with the 
316.7   county auditor, executed by at least 25 percent of the eligible 
316.8   voters in each district or part of a district contained in the 
316.9   land area, the county auditor shall forthwith call and conduct a 
316.10  special election of the electors resident in the whole land area 
316.11  on the question of adoption of the plat.  For the purposes of 
316.12  this section, the term "electors resident in the whole land area"
316.13  means any person residing on any remaining portion of land, a 
316.14  part of which is included in the consolidation plat.  Any 
316.15  eligible voter owning land included in the plat who lives upon 
316.16  land adjacent or contiguous to that part of the voter's land 
316.17  included in the plat shall be included and counted in computing 
316.18  the 25 percent of the eligible voters necessary to sign the 
316.19  petition and shall also be qualified to sign the petition.  
316.20  Failure to file the petition within 60 days of approval of the 
316.21  plat by the commissioner terminates the proceedings. 
316.22     Subd. 11.  [NOTICE OF ELECTION.] Upon an election becoming 
316.23  callable under provisions of subdivision 9 or 10, the school 
316.24  board shall give ten days' posted notice of election in the area 
316.25  in which the election is to be held and also if there be a 
316.26  newspaper is published in the area, one weeks' published notice 
316.27  shall be given.  The notice shall must specify the time, place 
316.28  and purpose of the election. 
316.29     Subd. 12.  [ELECTION.] The school board shall determine the 
316.30  date of the election, the number of boundaries of voting 
316.31  precincts, and the location of the polling places where voting 
316.32  shall be conducted, and the hours the polls will be open.  
316.33  The school board shall also provide official ballots which shall 
316.34  must be used exclusively and shall be in the following form: 
316.35     For consolidation .... 
316.36     Against consolidation .... 
317.1      The school board shall must appoint election judges who 
317.2   shall act as clerks of election.  The ballots and results shall 
317.3   must be certified to the school board who shall canvass and 
317.4   tabulate the total vote cast for and against the proposal. 
317.5      Subd. 13.  [EFFECTIVE DATE.] If a majority of the votes 
317.6   cast on the question at the election approve the consolidation, 
317.7   and if the necessary approving resolutions of boards entitled to 
317.8   act on the plat have been adopted, the school board shall must, 
317.9   within ten days of the election, notify the county auditor who 
317.10  shall, within ten days of the notice or of the expiration of the 
317.11  period during which an election can be called, issue an order 
317.12  setting a date for the effective date of the change.  The 
317.13  effective date shall must be July 1 of the year determined by 
317.14  the school board in the original resolution adopted under 
317.15  subdivision 2.  The auditor shall mail or deliver a copy of such 
317.16  order to each auditor holding a copy of the plat and to the 
317.17  clerk of each district affected by the order and to the 
317.18  commissioner.  The school board shall must similarly notify the 
317.19  county auditor if the election fails.  The proceedings are then 
317.20  terminated and the county auditor shall so notify the 
317.21  commissioner and the auditors and the clerk of each school 
317.22  district affected. 
317.23     Subd. 14.  [IDENTIFICATION NUMBER.] Upon receipt of the 
317.24  order creating a new district, the commissioner shall forthwith, 
317.25  by order, assign an identification number to the new district 
317.26  and shall mail a copy of the order to the county auditor and to 
317.27  each auditor who holds a copy of the plat.  If all of the 
317.28  territory in one and only one independent district maintaining a 
317.29  secondary school is included in the new independent district 
317.30  created pursuant to consolidation, and if the commissioner finds 
317.31  that it is more practical and reasonable and in the interest of 
317.32  efficiency and economy of operation to so do, the commissioner 
317.33  may assign to the new district the same number as previously 
317.34  held by the included independent district. 
317.35     Subd. 15.  [ASSETS AND LIABILITIES.] If no district is 
317.36  divided by virtue of the proceedings, all of the assets, real 
318.1   and personal, of the districts involved and all legally valid 
318.2   and enforceable claims and contract obligations of the districts 
318.3   pass to the new district, except as provided in section 
318.4   122.532.  If a district is divided by virtue of the proceedings, 
318.5   upon receipt of the order of the commissioner, the auditor of 
318.6   the county containing the greatest land area of the new district 
318.7   shall present a copy of the plat and supporting statement and 
318.8   orders issued in the proceedings to the commissioner, together 
318.9   with such information as is available to that auditor concerning 
318.10  the assets and liabilities not secured by bonds of each 
318.11  district, any part of which is included in the newly created 
318.12  district.  Thereafter within 30 days the commissioner shall 
318.13  issue an order providing for a division of the assets and 
318.14  liabilities of the districts involved and apportioning and 
318.15  dividing these assets and liabilities according to such terms as 
318.16  the commissioner may deem just and equitable.  In making this 
318.17  division of assets and liabilities, the commissioner may 
318.18  consider the amount of bonded debt to be assumed by property in 
318.19  each area under the provisions of this section.  If the order of 
318.20  consolidation transfers any real estate interest to the new 
318.21  district or to another district, the order apportioning assets 
318.22  and liabilities may impose a dollar claim on the district 
318.23  receiving the real estate in favor of any other district 
318.24  involved in an amount not exceeding the reasonable value of the 
318.25  real estate interest involved, which claim shall be paid in the 
318.26  manner provided by law for the enforcement of judgments. 
318.27     Subd. 16.  [BONDED DEBT.] As of the effective date of the 
318.28  consolidation, the bonded debt of all component districts shall 
318.29  must be paid according to the plan for consolidation proposed in 
318.30  the approved plat and according to this subdivision. 
318.31     (a) If the plan for consolidation so provides, the bonded 
318.32  debt of all component districts shall must be paid according to 
318.33  levies previously made for that debt under chapter 475.  In this 
318.34  case, the obligation of the taxable property in the component 
318.35  districts with reference to the payment of such bonded debt is 
318.36  not affected by the consolidation. 
319.1      (b) If the plan for consolidation makes no provision for 
319.2   the disposition of bonded debt, all the taxable property in the 
319.3   newly created district is taxable for the payment of any bonded 
319.4   debt incurred by any component district in the proportion which 
319.5   the net tax capacity of that part of a preexisting district 
319.6   which is included in the newly created district bears to the net 
319.7   tax capacity of the entire preexisting district as of the time 
319.8   of the consolidation. 
319.9      (c) If the plan for consolidation so provides, all the 
319.10  taxable property in the newly created district will be taxable 
319.11  for a portion of the bonded debt incurred by any component 
319.12  district prior to the consolidation. 
319.13     The county auditor shall make the apportionment required 
319.14  under paragraphs (b) and (c) shall be made by the county auditor 
319.15  and shall be incorporated and incorporate the apportionment as 
319.16  an annex to the order of the commissioner dividing the assets 
319.17  and liabilities of the component parts.  This subdivision shall 
319.18  not relieve any property from any tax liability for payment of 
319.19  any bonded obligation but taxable property in the newly created 
319.20  district becomes primarily liable for the payment of bonded 
319.21  debts to the extent of the proportion stated. 
319.22     Subd. 16c.  [BONDS; ELECTION.] The board of the newly 
319.23  created district, when constituted as provided in subdivision 
319.24  17, may provide for an election of that district on the issuance 
319.25  of bonds.  It may issue and sell bonds authorized at the 
319.26  election, or bonds authorized at an election previously held in 
319.27  any preexisting district wholly included within the newly 
319.28  created district, or bonds for a purpose for which an election 
319.29  is not required by law.  The actions may be taken at any time 
319.30  after the date of the county auditor's order issued under 
319.31  subdivision 13, and before or after the date upon which the 
319.32  consolidation becomes effective for other purposes, and taxes 
319.33  for the payment of the bonds shall be levied upon all taxable 
319.34  property in the newly created district.  No bonds shall be 
319.35  delivered to purchasers until 30 days after the date of the 
319.36  county auditor's order.  If within this period a notice of 
320.1   appeal from the county auditor's order to the district court is 
320.2   filed in accordance with section 127.25, no bonds shall be 
320.3   delivered by the newly created district to purchasers unless: 
320.4      (1) the county auditor's order is affirmed by final order 
320.5   of the district court in the special proceeding, and a period of 
320.6   30 days from the service of the final order expires without an 
320.7   appeal being commenced; or, 
320.8      (2) if an appeal is taken, the order is affirmed and the 
320.9   time for petitioning for further review has expired; except 
320.10  that.  Notwithstanding the pendency of the appeal, if all of the 
320.11  territory of one and only one independent district maintaining a 
320.12  secondary school is included in the newly created district, and 
320.13  if the net tax capacity of taxable property in the territory 
320.14  comprises 90 percent or more of the net tax capacity of all 
320.15  taxable property in the newly created district, then the board 
320.16  may issue, sell, and deliver any bonds voted by the preexisting 
320.17  independent district and any bonds voted or otherwise authorized 
320.18  by the newly created district, notwithstanding the pendency of 
320.19  the appeal, and the bonds shall must be paid by the levy of 
320.20  taxes upon the property within the territory of the preexisting 
320.21  independent district and within the other areas, if any, that 
320.22  are finally determined to be properly included within the newly 
320.23  created district.  In any election held in the newly created 
320.24  district as authorized in the preceding sentence, all qualified 
320.25  electors residing within the area of that district as defined in 
320.26  the county auditor's order shall be entitled to vote, but the 
320.27  votes cast by residents of former districts or portions of 
320.28  former districts included in the area, other than the 
320.29  independent district maintaining the secondary school, shall be 
320.30  received and counted separately.  The bonds shall must not be 
320.31  issued and sold unless authorized by a majority of the votes 
320.32  cast thereon by electors of the independent district maintaining 
320.33  the secondary school, and also by a majority of the votes cast 
320.34  thereon by electors residing within the entire area of the newly 
320.35  created district. 
320.36     Subd. 18.  [BOARD ELECTION; DUTIES.] (a) The county auditor 
321.1   shall determine a date, not less than 30 nor more than 60 days 
321.2   from the date that the order setting the effective date of the 
321.3   consolidation according to subdivision 13 was issued, upon which 
321.4   date shall be held to hold a special election in the district 
321.5   for the purpose of electing a board of six members for terms of 
321.6   four years and until a successor is elected and qualifies 
321.7   according to provisions of law governing the election of board 
321.8   members in independent districts.  Notwithstanding the 
321.9   foregoing, three members of the first board must be elected to 
321.10  terms that expire on the first Monday in January following the 
321.11  first regularly scheduled school district general election that 
321.12  occurs more than six months after the election of the first 
321.13  board and three members must be elected to terms that expire on 
321.14  the first Monday in January following the second school district 
321.15  general election that occurs more than six months after the 
321.16  election of the first board.  If the first board consists of 
321.17  seven members, then four members may be elected at either the 
321.18  first or second regularly scheduled school district general 
321.19  election following the election of the first board.  If the 
321.20  resolution or petition for consolidation pursuant to subdivision 
321.21  2 proposed the establishment of separate election districts, 
321.22  these members shall be elected from separate election districts 
321.23  according to the provisions of that resolution or petition and 
321.24  of chapter 205A. 
321.25     (b) The county auditor shall give ten days' posted notice 
321.26  of election in the area in which the election is to be held and 
321.27  also if there be a newspaper is published in the proposed new 
321.28  district, one weeks' published notice shall be given.  The 
321.29  notice shall must specify the time, place, and purpose of the 
321.30  election. 
321.31     (c) Any person desiring to be a candidate for a school 
321.32  election shall file an application with the county auditor to 
321.33  have the applicant's name placed on the ballot for such office, 
321.34  specifying the term for which the application is made.  The 
321.35  application shall must be filed not less than 21 days before the 
321.36  election. 
322.1      (d) The county auditor shall prepare, at the expense of the 
322.2   county, necessary ballots for the election of officers, placing 
322.3   thereon the names of the proposed candidates for each office.  
322.4   The ballots shall must be marked and signed as official ballots 
322.5   and shall be used exclusively at the election.  The county 
322.6   auditor shall determine the number of voting precincts and the 
322.7   boundaries of each.  The county auditor shall determine the 
322.8   location of polling places and the hours the polls shall be open 
322.9   and shall appoint three election judges for each polling place 
322.10  who shall act as clerks of election.  Election judges shall 
322.11  certify ballots and results to the county auditor for tabulation 
322.12  and canvass. 
322.13     (e) After making a canvass and tabulation, the county 
322.14  auditor shall issue a certificate of election to the candidate 
322.15  for each office who received the largest number of votes cast 
322.16  for the office.  The county auditor shall deliver such 
322.17  certificate to the person entitled thereto to a certificate by 
322.18  certified mail, and each person so certified shall file an 
322.19  acceptance and oath of office with the county auditor within 30 
322.20  days of the date of mailing of the certificate.  A person who 
322.21  fails to qualify prior to the time specified shall be deemed to 
322.22  have refused to serve, but such filing may be made at any time 
322.23  before action to fill vacancy has been taken. 
322.24     (f) The board of each district included in the new enlarged 
322.25  district shall continue to maintain school the schools therein 
322.26  until the effective date of the consolidation.  Such boards 
322.27  shall have power and authority only to make such contracts, to 
322.28  do such things as are necessary to maintain properly maintain 
322.29  the schools for the period prior to that date, and to certify to 
322.30  the county auditor according to levy limitations applicable to 
322.31  the component districts the taxes collectible in the calendar 
322.32  year when the consolidation becomes effective. 
322.33     (g) It shall be the immediate duty of The newly elected 
322.34  board of the new enlarged district has the immediate duty, when 
322.35  after the members thereof have qualified and the board has been 
322.36  organized, to plan for the maintenance of the school or schools 
323.1   of the new district for the next school year, to enter into the 
323.2   necessary negotiations and contracts for the employment of 
323.3   personnel, purchase of equipment and supplies, and other 
323.4   acquisition and betterment purposes, when authorized by the 
323.5   voters to issue bonds under the provisions of chapter 475; and.  
323.6   On the effective date of the consolidation to, the newly elected 
323.7   board must assume the full duties of the care, management and 
323.8   control of the new enlarged district.  The board of the new 
323.9   enlarged district shall must give due consideration to the 
323.10  feasibility of maintaining such existing attendance centers and 
323.11  of establishing such other attendance centers, especially in 
323.12  rural areas, as will afford equitable and efficient school 
323.13  administration and assure the convenience and welfare of the 
323.14  pupils residing in the enlarged district.  The obligations of 
323.15  the new board to teachers employed by component districts shall 
323.16  be governed by the provisions of section 122.532.  The 
323.17  obligations of the new board to nonlicensed employees employed 
323.18  by component districts is governed by subdivision 18a. 
323.19     Subd. 18a.  [NONLICENSED EMPLOYEES.] (a) As of the 
323.20  effective date of a consolidation of two or more districts or 
323.21  parts of them, each nonlicensed employee employed by an affected 
323.22  district must be assigned to the newly created district. 
323.23     (b) As of the effective date of a consolidation, any 
323.24  employee organization may petition the commissioner of the 
323.25  bureau of mediation services for a certification election under 
323.26  chapter 179A.  An organization certified as the exclusive 
323.27  representative for nonlicensed employees in a particular 
323.28  preexisting district continues as the exclusive representative 
323.29  for those particular employees for a period of 90 days from the 
323.30  effective date of a consolidation.  If a petition for 
323.31  representation of nonlicensed employees is filed within 90 days, 
323.32  an exclusive representative for those particular nonlicensed 
323.33  employees continues as the exclusive representative until the 
323.34  bureau of mediation services certification proceedings are 
323.35  concluded. 
323.36     (c) The terms and conditions of employment of nonlicensed 
324.1   employees assigned to the newly created district are temporarily 
324.2   governed by contracts executed by an exclusive representative 
324.3   for a period of 90 days from the effective date of the 
324.4   consolidation.  If a petition for representation is filed with 
324.5   the bureau of mediation services within the 90 days, the 
324.6   contractual terms and conditions of employment for those 
324.7   nonlicensed employees who were governed by a preexisting 
324.8   contract continue in effect until the bureau of mediation 
324.9   services proceedings are concluded and, if an exclusive 
324.10  representative has been elected, until successor contracts are 
324.11  executed between the board of the newly created district and the 
324.12  new exclusive representative.  The terms and conditions of 
324.13  employment of nonlicensed employees assigned to the newly 
324.14  created district who were not governed by a collective 
324.15  bargaining agreement at the time of the consolidation are 
324.16  governed by the policies of the board of the newly created 
324.17  district. 
324.18     (d) The date of first employment in the newly created 
324.19  district is the date on which services were first performed by 
324.20  the employee in the preexisting district.  Any sick leave, 
324.21  vacation time, or severance pay benefits accumulated under 
324.22  policies of the preexisting district or contracts between the 
324.23  exclusive representatives and the board of the preexisting 
324.24  district continue to apply in the newly created district to the 
324.25  employees of the preexisting districts, subject to any maximum 
324.26  accumulation limitations negotiated in a successor contract.  
324.27  Future leaves of absence, vacations, or other benefits to be 
324.28  accumulated in the newly created district are governed by board 
324.29  policy or by contract between the exclusive representative of an 
324.30  appropriate unit of employees and the board of the newly created 
324.31  district.  The board of the newly created district shall must 
324.32  provide, to transferred nonlicensed employees, open enrollment 
324.33  in all insurance plans with no limit on preexisting conditions. 
324.34     Subd. 19.  [ATTACHMENT.] In case of the consolidation of 
324.35  two or more districts or parts of districts into a larger 
324.36  district, any portions or parts of divided districts which have 
325.1   less than four sections of land shall be attached to one or more 
325.2   adjoining districts by the board of county commissioners upon 
325.3   due notice and hearing. 
325.4      The county auditor shall give ten days' posted notice of 
325.5   the hearing in the area to be attached and shall deliver a copy 
325.6   of the notice of hearing to the clerk of each district adjoining 
325.7   the area at least 30 days prior to the date set for the 
325.8   hearing.  If any adjoining district by resolution of its board, 
325.9   a copy of which is served on the county board before the 
325.10  hearing, demands that area to be attached assume a proportionate 
325.11  share of the bonded debt of the demanding district, then if the 
325.12  order of the county board attaches any land area to such 
325.13  district, the taxable property in such area assumes its 
325.14  proportionate share of the authorized and outstanding bonded 
325.15  debt of the district to which it is attached. 
325.16     Subd. 20.  [RETIREMENT INCENTIVES.] (a) For consolidations 
325.17  effective July 1, 1994, and thereafter, a school board of a 
325.18  district may offer early retirement incentives to licensed and 
325.19  nonlicensed staff.  The early retirement incentives that the 
325.20  board may offer are: 
325.21     (1) the payment of employer pension plan contributions for 
325.22  a specified period of allowable service credit for district 
325.23  employees who have at least ten years of allowable service 
325.24  credit in the applicable pension plan under paragraph (b); 
325.25     (2) an extended leave of absence for an eligible employee 
325.26  under section 125.60; 
325.27     (3) severance payment incentives under paragraph (c); and 
325.28     (4) the employer payment of the premiums for continued 
325.29  health insurance coverage under paragraph (d). 
325.30     These incentives may only be offered to employees who 
325.31  terminate active employment with the school district or who 
325.32  enter into an extended leave of absence as a result of the 
325.33  consolidation, whichever applies.  The board may determine the 
325.34  staff to whom the incentives are offered.  Unilateral 
325.35  implementation of this section by a school board is not an 
325.36  unfair labor practice under chapter 179A. 
326.1      (b) An employee with at least ten years of allowable 
326.2   service credit in the applicable pension plan who is offered an 
326.3   early retirement incentive under paragraph (a), clause (1), may 
326.4   purchase up to five additional years of allowable service credit 
326.5   from the applicable pension plan.  To do so, the former employee 
326.6   must pay the member contributions to the pension plan annually 
326.7   in a manner and in accord with a schedule specified by the 
326.8   executive director of the applicable fund.  If the former 
326.9   employee makes the member contribution, the board shall must 
326.10  make the applicable employer contribution.  The salary used to 
326.11  determine these contributions is the salary of the person in the 
326.12  last year that the former employee was employed by the 
326.13  district.  During the period of continuing member and employer 
326.14  contributions, the person is not considered to be an active 
326.15  member of the applicable pension plan, is not eligible for any 
326.16  active member disability or survivorship benefit coverage, and 
326.17  is not included in any postemployment termination benefit plan 
326.18  changes unless the applicable benefit legislation provides 
326.19  otherwise.  Continued eligibility to purchase service credit 
326.20  under this paragraph expires if the person is subsequently 
326.21  employed during the service purchase period by a public employer 
326.22  with retirement coverage under a pension plan specified in 
326.23  section 356.30, subdivision 3. 
326.24     (c) Severance payment incentives must conform with sections 
326.25  465.72, 465.721, and 465.722. 
326.26     (d) The board may offer a former employee continued 
326.27  employer-paid health insurance coverage.  Coverage may not 
326.28  extend beyond age 65 or the end of the first month in which the 
326.29  employee is eligible for employer-paid health insurance coverage 
326.30  from a new employer.  For purposes of this subdivision, 
326.31  "employer-paid health insurance coverage" means medical, 
326.32  hospitalization, or health insurance coverage provided through 
326.33  an insurance company that is licensed to do business in the 
326.34  state and for which the employing unit pays more than one-half 
326.35  of the cost of the insurance premiums. 
326.36     (e) A school board may offer these incentives beginning on 
327.1   the day that the consolidation is approved under section 122.23, 
327.2   subdivision 12 or, if an election is not called under section 
327.3   122.23, subdivision 9 or 10, on the day that the plat is 
327.4   approved by the commissioner.  A board may offer these 
327.5   incentives until the June 30 following the effective date of the 
327.6   consolidation. 
327.7      Sec. 7.  Minnesota Statutes 1996, section 122.241, is 
327.8   amended to read: 
327.9      122.241 [COOPERATION AND COMBINATION.] 
327.10     Subdivision 1.  [SCOPE.] Sections 122.241 to 122.248 
327.11  establish procedures for school boards that adopt, by 
327.12  resolution, a five-year written agreement: 
327.13     (1) to provide at least secondary instruction cooperatively 
327.14  for at least one or two years, if the districts cooperate 
327.15  according to subdivision 2; and 
327.16     (2) to combine into one district.  
327.17     Subd. 2.  [COOPERATION REQUIREMENTS.] Cooperating districts 
327.18  shall must: 
327.19     (1) implement a written agreement according to section 
327.20  122.541 no later than the first year of cooperation; 
327.21     (2) all be members of one education district, if any one of 
327.22  the districts is a member, no later than the end of the second 
327.23  year of cooperation; and 
327.24     (3) all be members of one SC, if any one of the districts 
327.25  is a member. 
327.26     Clause (1) does not apply to a district that implemented an 
327.27  agreement for secondary education, according to section 122.535, 
327.28  during any year before the 1991-1992 school year.  If the 
327.29  districts cooperate for one or more years, the agreement may be 
327.30  continued during those years. 
327.31     Subd. 3.  [COMBINATION REQUIREMENTS.] Combining districts 
327.32  must be contiguous and meet one of the following requirements at 
327.33  the time of combination:  
327.34     (1) at least two districts with at least 400 resident 
327.35  pupils enrolled in grades 7 through 12 in the combined district 
327.36  and projections, approved by the department of children, 
328.1   families, and learning, of enrollment at least at that level for 
328.2   five years; 
328.3      (2) at least two districts if either: 
328.4      (i) both of the districts qualify for secondary sparsity 
328.5   revenue under section 124A.22, subdivision 6, and have an 
328.6   average isolation index over 23; or 
328.7      (ii) the combined district qualifies for secondary sparsity 
328.8   revenue; 
328.9      (3) at least three districts with fewer than 400 resident 
328.10  pupils enrolled in grades 7 through 12 in the combined district; 
328.11  or 
328.12     (4) at least two districts with fewer than 400 resident 
328.13  pupils enrolled in grades 7 through 12 in the combined district 
328.14  if either district is located on the border of the state. 
328.15     A combination under clause (2), (3), or (4) must be 
328.16  approved by the commissioner of children, families, and 
328.17  learning.  The commissioner shall disapprove a combination under 
328.18  clause (2), (3), or (4) if the combination is educationally 
328.19  unsound or would not reasonably enable the districts to fulfill 
328.20  statutory and rule requirements. 
328.21     Sec. 8.  Minnesota Statutes 1996, section 122.242, is 
328.22  amended to read: 
328.23     122.242 [COOPERATION AND COMBINATION PLAN.] 
328.24     Subdivision 1.  [ADOPTION AND STATE BOARD REVIEW.] Each 
328.25  school board must adopt, by resolution, a plan for cooperation 
328.26  and combination.  The plan must address each item in this 
328.27  section.  The plan must be specific for any item that will occur 
328.28  within three years and may be general or set forth alternative 
328.29  resolutions for an item that will occur in more than three 
328.30  years.  The plan must be submitted to the state board of 
328.31  education and the secretary of state for review and comment.  
328.32  Significant modifications and specific resolutions of items must 
328.33  be submitted to the state board for review and comment.  In the 
328.34  official newspaper of each district proposed for combination, 
328.35  the school board must publish at least a summary of the adopted 
328.36  plans, each significant modification and resolution of items, 
329.1   and each state board review and comment. 
329.2      Subd. 2.  [RULE EXEMPTIONS.] The plan must identify the 
329.3   rules of the state board of education from which the district 
329.4   intends to request exemption, according to Minnesota Rules, part 
329.5   3500.1000.  The plan may provide information about state laws 
329.6   that deter or impair cooperation or combination.  
329.7      Subd. 3.  [BOARD FORMATION.] The plan must state:  
329.8      (1) whether the new district would have one elected school 
329.9   board or whether it would have one elected school board and one 
329.10  elected board for each elementary school exercising powers and 
329.11  duties delegated to it by the school board of the entire 
329.12  district; 
329.13     (2) how many of the existing members of each district would 
329.14  become members of the school board of the combined district and, 
329.15  if so, a method to gradually reduce the membership to six or 
329.16  seven; and 
329.17     (3) if desired, election districts that include the 
329.18  establishment of separate areas from each of the combining 
329.19  districts from which school board members will be elected, the 
329.20  boundaries of these election districts, and the initial term of 
329.21  the member elected from each of these election districts.  
329.22     Subd. 4.  [ADMINISTRATION.] The plan must provide for:  
329.23     (1) selection of one superintendent for the combined 
329.24  district at a specified time, according to section 123.34, 
329.25  subdivision 9; and 
329.26     (2) alterations, if any, in administrative personnel and 
329.27  duties. 
329.28     Subd. 5.  [EMPLOYEES.] The plan must state: 
329.29     (1) procedures needed, at the time of combination, to 
329.30  combine teachers into one bargaining unit, with the exclusive 
329.31  representative determined according to section 122.532; 
329.32     (2) procedures needed, at the time of combination, to 
329.33  combine other bargaining units; 
329.34     (3) procedures to negotiate, with the assistance of the 
329.35  bureau of mediation services, an employment plan for licensed 
329.36  employees affected by the agreement; 
330.1      (4) procedures to negotiate, with the assistance of the 
330.2   bureau of mediation services, an employment plan for nonlicensed 
330.3   employees affected by the agreement; and 
330.4      (5) incentives that may be offered to superintendents, 
330.5   principals, teachers, and other licensed and nonlicensed 
330.6   employees, such as early retirement, severance pay, and health 
330.7   insurance benefits.  
330.8      Subd. 6.  [ACADEMIC PROGRAMS.] The plan must set forth: 
330.9      (1) elementary curriculum and programs; 
330.10     (2) improvements in secondary course offerings in at least 
330.11  communications, mathematics, science, social studies, foreign 
330.12  languages, physical education, health, and career education; 
330.13     (3) procedures for involving parents, teachers, and other 
330.14  interested people in developing learner outcomes in curricular 
330.15  areas; 
330.16     (4) procedures for involving teachers in determining levels 
330.17  of learner outcomes; 
330.18     (5) implications for special education cooperatives, 
330.19  secondary vocational cooperatives, joint powers agreements, 
330.20  education districts, and other cooperative arrangements if the 
330.21  districts combined and if they did not; and 
330.22     (6) a description of the long-range educational services of 
330.23  the combined district and of the individual districts if the 
330.24  combination is not achieved.  
330.25     Subd. 7.  [PUPIL ACTIVITIES.] The plan must provide for 
330.26  combining extracurricular and cocurricular activities.  
330.27     Subd. 8.  [REFERENDUM.] The plan must set forth:  
330.28     (1) procedures for a referendum, held prior to the year of 
330.29  the proposed combination, to approve combining the school 
330.30  districts; and 
330.31     (2) whether a majority of those voting in each district 
330.32  proposed for combination or a majority of those voting on the 
330.33  question in the entire area proposed for combination would be 
330.34  needed to pass the referendum.  
330.35     Subd. 9.  [FINANCES.] The plan must state:  
330.36     (1) whether debt service for the bonds outstanding at the 
331.1   time of combination remains solely with the district that issued 
331.2   the bonds or whether all or a portion of the debt service for 
331.3   the bonds will be assumed by the combined district and paid by 
331.4   the combined district on behalf of the district that issued the 
331.5   bonds; 
331.6      (2) whether obligations for a capital loan or energy loan 
331.7   made according to section 216C.37 or sections 298.292 to 298.298 
331.8   outstanding at the time of combination remain solely with the 
331.9   district that obtained the loan, or whether all or a portion of 
331.10  all the loan obligations will be assumed by the combined 
331.11  district and paid by the combined district on behalf of the 
331.12  district that obtained the loan; 
331.13     (3) the treatment of debt service levies, down payment 
331.14  levies under section 124.82, and referendum levies; 
331.15     (4) whether the cooperating or combined district will levy 
331.16  for reorganization operating debt according to section 121.915, 
331.17  clause (1); and 
331.18     (5) two- and five-year projections, prepared by the 
331.19  department of children, families, and learning upon the request 
331.20  of any district, of revenues, expenditures, and property taxes 
331.21  for each district if it cooperated and combined and if it did 
331.22  not. 
331.23     Subd. 10.  [BUILDING SITES.] The plan must provide for: 
331.24     (1) locations for elementary schools which need not be 
331.25  altered and may contain assurances that, to the extent feasible, 
331.26  elementary schools will be retained for at least the number of 
331.27  years specified in the plan; and 
331.28     (2) one location, if possible, for a secondary school.  
331.29     Subd. 11.  [TIMING.] The plan must contain a time schedule 
331.30  for implementation.  
331.31     Sec. 9.  Minnesota Statutes 1996, section 122.243, is 
331.32  amended to read: 
331.33     122.243 [STATE BOARD AND VOTER APPROVAL.] 
331.34     Subdivision 1.  [COMMISSIONER APPROVAL.] Before submitting 
331.35  the question of combining school districts to the voters at a 
331.36  referendum, the cooperating districts shall must submit the 
332.1   proposed combination to the commissioner of children, families, 
332.2   and learning.  The commissioner shall determine the date for 
332.3   submission and may require any information it determines 
332.4   necessary.  The commissioner shall disapprove the proposed 
332.5   combination if it is educationally unsound, will not reasonably 
332.6   enable the combined district to fulfill statutory and rule 
332.7   requirements, or if the plan or modifications are incomplete.  
332.8   If disapproved by the commissioner, the referendum shall be 
332.9   postponed, but not canceled, by the school boards. 
332.10     Subd. 2.  [VOTER APPROVAL.] A referendum on the question of 
332.11  combination shall must be conducted during the first or second 
332.12  year of cooperation for districts that cooperate according to 
332.13  section 122.241, or no more than 18 months before the effective 
332.14  date of combination for districts that do not cooperate.  The 
332.15  referendum shall must be on a date called by the school boards.  
332.16  The referendum shall must be conducted by the school boards 
332.17  according to the Minnesota election law, as defined in section 
332.18  200.01.  If the referendum fails, the same question or a 
332.19  modified question may be submitted.  If the referendum fails 
332.20  again, the districts shall must modify their cooperation and 
332.21  combination plan.  A third referendum may be conducted.  If a 
332.22  second or third referendum is conducted after October 1, the 
332.23  newly combined district may not levy under section 124.2725 
332.24  until the following year.  Referendums shall be conducted on the 
332.25  same date in all districts. 
332.26     Sec. 10.  Minnesota Statutes 1996, section 122.245, 
332.27  subdivision 2, is amended to read: 
332.28     Subd. 2.  [NONLICENSED EMPLOYEES TERMINATION.] If 
332.29  compatible plans are not negotiated according to section 
332.30  122.242, subdivision 5, the school boards shall comply with this 
332.31  subdivision with respect to nonlicensed employees.  Nonlicensed 
332.32  employees whose positions are discontinued as a result of 
332.33  cooperation or combination, as applicable, shall be:  
332.34     (1) employed by a cooperating board or the combined board, 
332.35  if possible; 
332.36     (2) assigned to work in a cooperating district or the 
333.1   combined district, if possible; or 
333.2      (3) terminated in the inverse order in which they were 
333.3   employed in a district, according to a combined seniority list 
333.4   of nonlicensed employees in the cooperating or combined 
333.5   district, as applicable.  
333.6      Sec. 11.  Minnesota Statutes 1996, section 122.246, is 
333.7   amended to read: 
333.8      122.246 [COUNTY AUDITOR PLAT.] 
333.9      Upon the request of two or more districts that have adopted 
333.10  a resolution to cooperate and combine, the county auditor shall 
333.11  prepare a plat.  If the proposed combined district is located in 
333.12  more than one county, the request shall must be submitted to the 
333.13  county auditor of the county that has the greatest land area in 
333.14  the proposed district.  The plat shall must show: 
333.15     (1) the boundaries of each of the present districts; 
333.16     (2) the boundaries of the proposed district; 
333.17     (3) the boundaries of proposed election districts, if 
333.18  requested; and 
333.19     (4) other information deemed pertinent by the school boards 
333.20  or the county auditor. 
333.21     Sec. 12.  Minnesota Statutes 1996, section 122.247, 
333.22  subdivision 2, is amended to read: 
333.23     Subd. 2.  [BONDED DEBT.] Debt service for bonds outstanding 
333.24  at the time of the combination may be levied by the 
333.25  combined school board consistent with the plan adopted according 
333.26  to section 122.242, and any subsequent modifications, subject to 
333.27  section 475.61.  The primary obligation to pay the bonded 
333.28  indebtedness that is outstanding on the effective date of 
333.29  combination remains with the district that issued the bonds.  
333.30  However, the combined district may make debt service payments on 
333.31  behalf of a preexisting district. 
333.32     Sec. 13.  Minnesota Statutes 1996, section 122.247, 
333.33  subdivision 2a, is amended to read: 
333.34     Subd. 2a.  [CAPITAL LOAN.] The combined school board may 
333.35  levy for the obligations for a capital loan outstanding at the 
333.36  time of combination, consistent with the plan adopted according 
334.1   to section 122.242 and any subsequent modifications.  The 
334.2   primary obligation to levy as required by the capital loan 
334.3   remains with taxable property in the preexisting district that 
334.4   obtained the capital loan.  However, the obligation of a capital 
334.5   loan may be extended to all of the taxable property in the 
334.6   combined district. 
334.7      Sec. 14.  Minnesota Statutes 1996, section 122.248, is 
334.8   amended to read: 
334.9      122.248 [REPORTS TO DEPARTMENT OF CHILDREN, FAMILIES, AND 
334.10  LEARNING.] 
334.11     Cooperating districts may submit joint reports and jointly 
334.12  provide information required by the department of children, 
334.13  families, and learning.  The joint reports must allow 
334.14  information to be attributed to each district.  A combined 
334.15  district must report and provide information as a single unit.  
334.16     Sec. 15.  Minnesota Statutes 1996, section 122.25, is 
334.17  amended to read: 
334.18     122.25 [COMMON DISTRICT TO INDEPENDENT DISTRICT.] 
334.19     Subdivision 1.  [PETITION.] If six or more eligible voters 
334.20  of a common district desire to change the organization of their 
334.21  district to an independent district, they may call for a vote 
334.22  upon the question at the next annual meeting by filing a 
334.23  petition therefor with the clerk.  In the notice for the 
334.24  meeting, the clerk shall include a statement that the question 
334.25  will be voted upon at the meeting. 
334.26     Subd. 2.  [BOARD ELECTION.] At the annual meeting, if a 
334.27  majority of the votes cast on the question favors the conversion 
334.28  to an independent district, a board of six members shall be 
334.29  elected.  Nominations may be made from the floor of the meeting 
334.30  and election shall be by secret ballot.  All board members 
334.31  elected at this meeting shall serve for terms expiring on the 
334.32  third Tuesday in the next May next following the election on 
334.33  which date a regular annual election shall be held in the manner 
334.34  provided by law.  At this first annual election for independent 
334.35  districts, six directors shall be elected, two to hold office 
334.36  until July 1 following the next annual election, two to hold 
335.1   office until the expiration of one year from said July 1 and two 
335.2   to hold office until the expiration of two years from said July 
335.3   1; the time which each director shall hold office being 
335.4   designated on the ballot.  
335.5      Subd. 3.  [IDENTIFICATION NUMBER.] If the organization of 
335.6   the district is changed from common to independent at the 
335.7   meeting, the clerk shall forthwith notify the auditor and the 
335.8   commissioner.  
335.9      Upon receipt of such notification, the commissioner shall 
335.10  forthwith assign a new identification number to the district and 
335.11  shall notify the auditor and the clerk of the district thereof.  
335.12     Subd. 4.  [ASSET AND LIABILITY TRANSFER.] As of the date of 
335.13  election, if a majority of votes cast on the question favor the 
335.14  conversion to an independent district, the classification of the 
335.15  district is changed from common to independent.  Title to all 
335.16  the property, real and personal, of the common district passes 
335.17  to the independent district and all current outstanding 
335.18  contractual obligations, including the bonded indebtedness, if 
335.19  any, of the common district, together with any legally valid and 
335.20  enforceable claims against the common district are imposed on 
335.21  the independent district.  
335.22     Subd. 5.  [REAL ESTATE RECORDS.] Upon receipt of the 
335.23  identification number from the commissioner, the clerk of the 
335.24  district shall record such change of number with the county 
335.25  recorder in any county in which the common district owns any 
335.26  real estate. 
335.27     Sec. 16.  [122.28] [ATTENDANCE; SCHOOL IN ANOTHER STATE; 
335.28  SEVERANCE PAY.] 
335.29     Subdivision 1.  [ATTENDANCE IN ANOTHER STATE.] Any person 
335.30  under 21 years of age residing in any district not maintaining a 
335.31  secondary school who has successfully completed the elementary 
335.32  school may, with the consent of the board of such district, 
335.33  attend any secondary school of a district in an adjoining state 
335.34  willing to admit the person, if the secondary school is nearer 
335.35  to the place of residence than any established secondary school 
335.36  in Minnesota, the distances being measured by the usual traveled 
336.1   routes.  Any tuition charged by the district so attended must be 
336.2   paid to the district attended by the district in which the 
336.3   person resides.  This tuition must not be more than (a) the 
336.4   district charges nonresident pupils of that state, (b) the 
336.5   average maintenance cost exclusive of transportation per pupil 
336.6   unit in average daily membership in the school attended, nor (c) 
336.7   the tuition rate provided for in section 124.18, subdivision 2.  
336.8      Any pupil attending a secondary school in an adjoining 
336.9   state for whom tuition is paid from district funds is entitled 
336.10  to transportation services in accordance with Minnesota Statutes.
336.11     Subd. 2.  [TUITION.] A board of a district maintaining a 
336.12  secondary school may by a majority vote provide for the 
336.13  instruction of any resident pupil attending an elementary 
336.14  school, a middle school, or a secondary school in a district in 
336.15  an adjoining state.  Any charge for tuition or transportation by 
336.16  the district in the adjoining state must be paid by the resident 
336.17  district.  The pupil must be considered a pupil of the resident 
336.18  district for the purposes of state aid. 
336.19     Subd. 3.  [SEVERANCE PAY.] A district must pay severance 
336.20  pay to a teacher who is placed on unrequested leave of absence 
336.21  by the district as a result of an agreement under this section.  
336.22  A teacher is eligible under this subdivision if the teacher: 
336.23     (1) is a teacher, as defined in section 125.12, subdivision 
336.24  1, but not a superintendent; 
336.25     (2) has a continuing contract with the district according 
336.26  to section 125.12, subdivision 4. 
336.27     The amount of severance pay must be equal to the teacher's 
336.28  salary for the school year during which the teacher was placed 
336.29  on unrequested leave of absence minus the gross amount the 
336.30  teacher was paid during the 12 months following the teacher's 
336.31  termination of salary, by an entity whose teachers by statute or 
336.32  rule must possess a valid Minnesota teaching license, and minus 
336.33  the amount a teacher receives as severance or other similar pay 
336.34  according to a contract with the district or district policy.  
336.35  These entities include, but are not limited to, the district 
336.36  that placed the teacher on unrequested leave of absence, another 
337.1   district in Minnesota, an education district, an intermediate 
337.2   school district, a SC, a board formed under section 471.59, a 
337.3   state residential academy, the Lola and Rudy Perpich Minnesota 
337.4   center for arts education, a vocational center, or a special 
337.5   education cooperative.  These entities do not include a district 
337.6   in another state, a Minnesota public post-secondary institution, 
337.7   or a state agency.  Only amounts earned by the teacher as a 
337.8   substitute teacher or in a position requiring a valid Minnesota 
337.9   teaching license shall be subtracted.  A teacher may decline any 
337.10  offer of employment as a teacher without loss of rights to 
337.11  severance pay. 
337.12     To determine the amount of severance pay that is due for 
337.13  the first six months following termination of the teacher's 
337.14  salary, the district may require the teacher to provide 
337.15  documented evidence of the teacher's employers and gross 
337.16  earnings during that period.  The district must pay the teacher 
337.17  the amount of severance pay it determines to be due from the 
337.18  proceeds of the levy for this purpose.  To determine the amount 
337.19  of severance pay that is due for the second six months of the 12 
337.20  months following the termination of the teacher's salary, the 
337.21  district may require the teacher to provide documented evidence 
337.22  of the teacher's employers and gross earnings during that 
337.23  period.  The district must pay the teacher the amount of 
337.24  severance pay it determines to be due from the proceeds of the 
337.25  levy for this purpose. 
337.26     A teacher who receives severance pay under this subdivision 
337.27  waives all further reinstatement rights under section 125.12, 
337.28  subdivision 6a or 6b.  If the teacher receives severance pay, 
337.29  the teacher must not receive credit for any years of service in 
337.30  the district paying severance pay prior to the year in which the 
337.31  teacher becomes eligible to receive severance pay.  
337.32     The severance pay is subject to section 465.72.  The 
337.33  district may levy annually according to section 124.912, 
337.34  subdivision 1, for the severance pay. 
337.35     Sec. 17.  Minnesota Statutes 1996, section 122.32, is 
337.36  amended to read: 
338.1      122.32 [REMAINING DISTRICTS, ACTION OF COUNTY BOARD; 
338.2   ELECTION.] 
338.3      Subdivision 1.  [DISSOLUTION.] If there be Any organized 
338.4   school district not maintaining a classified school within the 
338.5   district, except those districts which have a contract with a 
338.6   state university or with the board of regents of the University 
338.7   of Minnesota for the education of all the children of the 
338.8   district, such district shall hereby be dissolved as of the date 
338.9   the district ceases to maintain a classified school.  Any such 
338.10  district not maintaining a classified school shall forthwith 
338.11  must be attached by order of the county board to such district 
338.12  maintaining classified elementary or secondary schools upon 
338.13  notice and hearing as provided in section 122.22 for the 
338.14  attachment of dissolved districts. 
338.15     Subd. 2.  [SPECIAL ELECTION.] Prior to the order of the 
338.16  county board, the board may direct the county auditor to call a 
338.17  special election in the manner and form in which district 
338.18  elections are held.  The purpose of the election shall be to 
338.19  determine to which district or districts the dissolved district 
338.20  shall be attached.  The county board after hearing shall must 
338.21  determine the form of question as it should appear on the 
338.22  ballot.  The results of the election shall be advisory in nature 
338.23  only. 
338.24     Subd. 3.  [ORDER; ASSET AND LIABILITY TRANSFER.] The county 
338.25  auditor shall certify the results of the election shall be 
338.26  certified by the county auditor to the county board and.  Within 
338.27  45 days after such election, the county board shall must issue 
338.28  its order dissolving the district.  The order shall must also 
338.29  attach the dissolved district to a proper district as determined 
338.30  by the county board, and a copy of such order shall must be 
338.31  filed with the commissioner of children, families, and 
338.32  learning.  Title to all the property, real and personal, of the 
338.33  district dissolved passes to the district to which such 
338.34  dissolved district is attached.  If a district is divided by 
338.35  virtue of the proceedings the county board shall issue its order 
338.36  providing for the division of the current assets and liabilities 
339.1   according to such terms as it may deem just and equitable.  If 
339.2   the order of the county board attaches any land area to a 
339.3   district with bonded debt, the taxable property in such area 
339.4   assumes its proportionate share of the authorized and 
339.5   outstanding debt of the district to which it is attached. 
339.6      Sec. 18.  Minnesota Statutes 1996, section 122.34, is 
339.7   amended to read: 
339.8      122.34 [PRIVATE SCHOOLS IN NONOPERATING DISTRICTS.] 
339.9      Section 122.32 shall not apply to any school district in 
339.10  which is located any existing private school maintaining 
339.11  elementary and secondary education for 75 percent of eligible 
339.12  pupils within the district and complying with the requirements 
339.13  of section 120.101.  
339.14     Sec. 19.  Minnesota Statutes 1996, section 122.355, is 
339.15  amended to read: 
339.16     122.355 [BORDER DISTRICTS; CONTINUED OPERATION.] 
339.17     Subdivision 1.  [BORDER DISTRICTS.] The common school 
339.18  districts situated along the border of the state of Minnesota 
339.19  and the state of Wisconsin which have, for the preceding 25 
339.20  years, prior to May 26, 1965 been educating pupils of their 
339.21  district in school districts in Wisconsin may continue to 
339.22  operate as common school districts notwithstanding that any of 
339.23  such school districts do not maintain classified schools.  
339.24  Such school districts are not subject to the terms and 
339.25  provisions of sections 122.32 to 122.52. 
339.26     Subd. 2.  [CONTINUED OPERATION.] The provisions of 
339.27  subdivision 1 shall remain in effect as long as the school 
339.28  district does not discontinue the practice of education for 
339.29  their district as described in subdivision 1. 
339.30     Sec. 20.  Minnesota Statutes 1996, section 122.41, is 
339.31  amended to read: 
339.32     122.41 [DUTY TO MAINTAIN ELEMENTARY AND SECONDARY SCHOOLS.] 
339.33     Each school district shall must maintain classified 
339.34  elementary and secondary schools, grades 1 through 12, unless 
339.35  the district is exempt according to section 122.34 or 122.355, 
339.36  has made an agreement with another district or districts as 
340.1   provided in sections 122.535, 122.541, or sections 122.241 to 
340.2   122.248, or 122.93, subdivision 8, or has received a grant under 
340.3   sections 124.492 to 124.495.  A district that has an agreement 
340.4   according to sections 122.241 to 122.248 or 122.541 shall must 
340.5   operate a school with the number of grades required by those 
340.6   sections.  A district that has an agreement according to section 
340.7   122.535 or 122.93, subdivision 8, or has received a grant under 
340.8   sections 124.492 to 124.495 shall must operate a school for the 
340.9   grades not included in the agreement, but not fewer than three 
340.10  grades.  
340.11     Sec. 21.  Minnesota Statutes 1996, section 122.43, is 
340.12  amended to read: 
340.13     122.43 [PHASE OUT OF DISSOLVED DISTRICT.] 
340.14     Subd. 2.  [MAINTAIN SCHOOLS.] The board of each district so 
340.15  dissolved shall continue to maintain school schools until all 
340.16  its territory has been attached to a proper district not later 
340.17  than July 1.  Such boards shall only make such contracts and do 
340.18  such things as are necessary to properly maintain schools 
340.19  properly for the period they may be in session prior to the 
340.20  attachment.  
340.21     Sec. 22.  Minnesota Statutes 1996, section 122.44, is 
340.22  amended to read: 
340.23     122.44 [PROCEDURE FOR ATTACHMENT TO ORGANIZED DISTRICTS.] 
340.24     Subdivision 1.  [ATTACHMENT.] Upon notice and hearing, as 
340.25  provided in section 122.22 for the attachment of dissolved 
340.26  districts, all territory of school districts dissolved by 
340.27  sections 122.41 to 122.52 and all area of the state not in a 
340.28  district maintaining classified elementary and secondary schools 
340.29  shall must be attached by order of the county board to organized 
340.30  districts maintaining classified elementary and secondary 
340.31  schools, grades 1 through 12, unless a district has made an 
340.32  agreement with another district or districts as provided in 
340.33  section 122.535 or 122.541. 
340.34     Sec. 23.  Minnesota Statutes 1996, section 122.45, is 
340.35  amended to read: 
340.36     122.45 [ALLOCATION OF ASSETS AND LIABILITIES; LEVY.] 
341.1      Subdivision 1.  [ASSETS AND LIABILITIES.] Title to all the 
341.2   property, real and personal, of any district dissolved under the 
341.3   provisions of sections 122.41 to 122.52 and all legally valid 
341.4   and enforceable claims and contract obligations, pass to the 
341.5   district to which such dissolved district is attached.  If a 
341.6   district is divided by virtue of the proceedings, the 
341.7   commissioner shall issue a subsequent order providing for the 
341.8   division of the assets and liabilities according to such terms 
341.9   as the commissioner may deem just and equitable. 
341.10     Subd. 2.  [TAXABLE PROPERTY.] As of the effective date of 
341.11  the attachment, all the taxable property in the newly enlarged 
341.12  district is taxable for the payment of any bonded debt 
341.13  theretofore already incurred by any component district in the 
341.14  proportion which the net tax capacity of that part of a 
341.15  preexisting district which is included in the newly enlarged 
341.16  district bears to the net tax capacity of the entire preexisting 
341.17  district as of the time of the attachment.  The county auditor 
341.18  shall make this apportionment shall be made by the county 
341.19  auditor and shall be incorporated and incorporate the 
341.20  apportionment as an annex to the order of the commissioner 
341.21  dividing the assets and liabilities of the component parts.  
341.22  This subdivision shall not relieve any property from any tax 
341.23  liability for payment of any bonded obligation but taxable 
341.24  property in the newly enlarged district becomes primarily liable 
341.25  for the payment of bonded debts to the extent of the proportion 
341.26  stated. 
341.27     Subd. 3a.  [REIMBURSEMENT; SPECIAL LEVY.] (a) Liabilities 
341.28  of a dissolved district existing at the time of the attachment 
341.29  other than bonded debt within the purview of subdivision 2 shall 
341.30  must be obligations of the consolidated district after 
341.31  attachment (in the amount and kind determined by the 
341.32  commissioner according to subdivision 1, where a dissolved 
341.33  district is divided), for the payment of which the consolidated 
341.34  district has a right to reimbursement by special levy or 
341.35  levies.  The amount of reimbursement will be equal to the 
341.36  liabilities of the dissolved district for which the consolidated 
342.1   district is obligated less the aggregate of the following which 
342.2   has been or will be received by the consolidated district at or 
342.3   after the time of attachment from or as a result of the 
342.4   dissolution and attachment of the dissolved district: 
342.5      (1) all taxes inuring to the consolidating district upon 
342.6   levies made by the dissolved district; 
342.7      (2) all cash, bank accounts, investments, and other current 
342.8   assets; 
342.9      (3) earned state aids of the dissolved districts; 
342.10     (4) returns from the sale of property of the dissolved 
342.11  district. 
342.12     (b) The amount of such special levy so computed shall be 
342.13  certified to the county auditor with the other tax requirements 
342.14  of the consolidated district but separately stated and 
342.15  identified.  The auditor shall add the amount of special levy so 
342.16  certified to the school rate for the territory in the 
342.17  consolidated district which came from the dissolved district and 
342.18  include it in the levy on the taxable property in that 
342.19  territory; provided,.  The county auditor shall not spread more 
342.20  of the amount certified for special levy in any year than will 
342.21  amount to 20 percent of the school levy without the special 
342.22  levy, leaving the remaining part of the certified amount for 
342.23  levy in successive years without further certification.  Any 
342.24  amount of reimbursement to which it is entitled omitted by the 
342.25  consolidated district from its initial certification for special 
342.26  levy may be certified in a subsequent year for levy in the same 
342.27  manner as the levy upon initial certification. 
342.28     The levy authorized by this subdivision shall be in 
342.29  addition to those otherwise authorized for a school district. 
342.30     Sec. 24.  Minnesota Statutes 1996, section 122.46, is 
342.31  amended to read: 
342.32     122.46 [OFFICERS AND TEACHERS, TRANSITIONAL PROVISIONS.] 
342.33     Subdivision 1.  [BOARD.] The board of the district 
342.34  maintaining a secondary school to which district is attached 
342.35  territory of districts discontinued by sections 122.41 to 122.52 
342.36  shall must assume the duties and responsibilities of the board 
343.1   of the district so enlarged for the balance of the term to which 
343.2   the members were elected.  At the next annual school election 
343.3   the successors to the members whose terms then expire shall be 
343.4   elected by the legally qualified voters of the newly enlarged 
343.5   district.  Thereafter board members shall be elected according 
343.6   to the election procedure established for the election of board 
343.7   members in independent districts. 
343.8      Sec. 25.  Minnesota Statutes 1996, section 122.47, is 
343.9   amended to read: 
343.10     122.47 [SPECIAL SCHOOL DISTRICTS, APPLICATION.] 
343.11     When provisions of sections 122.41 to 122.52 are made to 
343.12  apply to any special school district, such district shall hereby 
343.13  be converted to an independent school district on the effective 
343.14  date specified in the orders issued under provisions of sections 
343.15  122.41 to 122.52.  All applicable provisions of Minnesota 
343.16  Statutes 1965, section 122.26, relating to such conversions 
343.17  shall otherwise be in force.  To the extent that any law or 
343.18  charter provision of any special district is inconsistent with 
343.19  the status of an independent school district or the powers 
343.20  common to independent school districts, such law or charter 
343.21  provision is hereby repealed.  Provided, however, that nothing 
343.22  in sections 122.41 to 122.52 shall in any way invalidate 
343.23  remaining portions of such laws or home rule charters, or the 
343.24  continuance of such special school districts to which no new 
343.25  territory is attached under the provisions of sections 122.41 to 
343.26  122.52.  
343.27     Sec. 26.  Minnesota Statutes 1996, section 122.48, is 
343.28  amended to read: 
343.29     122.48 [PRIVATE SCHOOLS.] 
343.30     Sections 122.41 to 122.46 shall not apply to any school 
343.31  district in which is located any existing private school 
343.32  maintaining elementary and secondary education for 75 percent of 
343.33  the eligible pupils within the district and complying with the 
343.34  requirements of section 120.101. 
343.35     Sec. 27.  Minnesota Statutes 1996, section 122.531, 
343.36  subdivision 1, is amended to read: 
344.1      Subdivision 1.  [DEFINITIONS.] The terms defined in 
344.2   chapters 124, and 124A, and 124D have the same meaning when they 
344.3   are used in this section, unless otherwise clearly indicated.  
344.4      Sec. 28.  Minnesota Statutes 1996, section 122.531, 
344.5   subdivision 2c, is amended to read: 
344.6      Subd. 2c.  [DISCONTINUED REFERENDUM REVENUE.] If the plan 
344.7   for consolidation provides for discontinuance of referendum 
344.8   revenue previously approved by voters of the component districts 
344.9   pursuant to section 124A.03, subdivision 2, or its predecessor 
344.10  provision, the newly created district shall must not receive 
344.11  referendum revenue unless the voters of the newly created 
344.12  district authorize referendum revenue pursuant to section 
344.13  124A.03, subdivision 2. 
344.14     Sec. 29.  Minnesota Statutes 1996, section 122.531, 
344.15  subdivision 5a, is amended to read: 
344.16     Subd. 5a.  [SUPPLEMENTAL REVENUE.] (a) For purposes of 
344.17  computing the supplemental revenue and the minimum allowance 
344.18  under section 124A.22, subdivision 9, paragraph (b), in the case 
344.19  of a consolidation, the newly created district's 1991-1992 
344.20  revenue and 1991-1992 actual pupil units are the sum of the 
344.21  1991-1992 revenue and 1991-1992 pupil units, respectively, of 
344.22  the former districts comprising the new district. 
344.23     (b) For purposes of computing the supplemental revenue and 
344.24  the minimum allowance under section 124A.22, subdivision 9, 
344.25  paragraph (b), in the case of a dissolution and attachment, a 
344.26  district's 1991-1992 revenue is the revenue of the existing 
344.27  district plus the result of the following calculation: 
344.28     (1) the 1991-1992 revenue of the dissolved district divided 
344.29  by 
344.30     (2) the dissolved district's 1991-1992 actual pupil units, 
344.31  multiplied by 
344.32     (3) the pupil units of the dissolved district in the most 
344.33  recent year before the dissolution allocated to the newly 
344.34  created or enlarged district. 
344.35     (c) In the case of a dissolution and attachment, the 
344.36  department of children, families, and learning shall allocate 
345.1   the pupil units of the dissolved district to the newly enlarged 
345.2   district based on the allocation of the property on which the 
345.3   pupils generating the pupil units reside. 
345.4      Sec. 30.  Minnesota Statutes 1996, section 122.531, 
345.5   subdivision 9, is amended to read: 
345.6      Subd. 9.  [LEVY FOR SEVERANCE PAY OR EARLY RETIREMENT 
345.7   INCENTIVES.] The school board of a newly created or enlarged 
345.8   district to which part or all of a dissolved district was 
345.9   attached according to section 122.22 may levy for severance pay 
345.10  or early retirement incentives for licensed and nonlicensed 
345.11  employees who resign or retire early as a result of the 
345.12  dissolution or consolidation, if the commissioner of children, 
345.13  families, and learning approves the incentives and the amount to 
345.14  be levied.  The amount may be levied over a period of up to five 
345.15  years and shall must be spread in whole or in part on the 
345.16  property of a preexisting district or the newly created or 
345.17  enlarged district, as determined by the school board of the 
345.18  newly created or enlarged district. 
345.19     Sec. 31.  Minnesota Statutes 1996, section 122.5311, 
345.20  subdivision 1, is amended to read: 
345.21     Subdivision 1.  [CAPITAL LOAN OBLIGATIONS.] If a district 
345.22  has a capital loan outstanding at the time of reorganization 
345.23  according to section 122.22, 122.23, or sections 122.241 to 
345.24  122.248, and if the plan for reorganization provides for payment 
345.25  of all or a portion of the capital loan obligation by the newly 
345.26  created or enlarged district or makes no provision for payment, 
345.27  all of the taxable property in the newly created or enlarged 
345.28  district is taxable for the payment to the extent stated in the 
345.29  plan.  Notwithstanding any contract to the contrary, if all of 
345.30  the taxable property in the newly created or enlarged district 
345.31  is taxable for the payment of the capital loan and until the 
345.32  capital loan is retired or canceled, the maximum effort debt 
345.33  service levy shall must be recalculated annually by the 
345.34  department of children, families, and learning to be equal to 
345.35  the required debt service levy plus an additional amount.  The 
345.36  additional amount shall must be the greater of: 
346.1      (i) zero, or 
346.2      (ii) the maximum effort debt service levy of the 
346.3   preexisting district minus the required debt service levy of the 
346.4   preexisting district that received the capital loan. 
346.5      For the purpose of the recalculation, additional bond 
346.6   issues after the date of the reorganization shall not impact the 
346.7   maximum effort debt service levy or the required debt service 
346.8   levy. 
346.9      Notwithstanding any contract to the contrary, the plan for 
346.10  reorganization may specify that the obligation for a capital 
346.11  loan remains solely with the preexisting district that incurred 
346.12  the obligation.  This subdivision does not relieve any property 
346.13  from any tax liability for payment of any capital loan 
346.14  obligation. 
346.15     Sec. 32.  Minnesota Statutes 1996, section 122.532, 
346.16  subdivision 2, is amended to read: 
346.17     Subd. 2.  [TEACHER ASSIGNMENT.] (a) As of the effective 
346.18  date of a consolidation in which a district is divided or the 
346.19  dissolution of a district and its attachment to two or more 
346.20  existing districts, each teacher employed by an affected 
346.21  district shall be assigned to the newly created or enlarged 
346.22  district on the basis of a ratio of the pupils assigned to each 
346.23  district according to the new district boundaries.  The district 
346.24  receiving the greatest number of pupils must be assigned the 
346.25  teacher with the greatest seniority, and the remaining teachers 
346.26  must be alternately assigned to each district until the district 
346.27  receiving the fewest pupils has received its ratio of teachers 
346.28  who will not be retiring before the effective date of the 
346.29  consolidation or dissolution. 
346.30     (b) Notwithstanding paragraph (a), the school board and the 
346.31  exclusive representative of teachers in each school district 
346.32  involved in the consolidation or dissolution and attachment may 
346.33  negotiate a plan for assigning teachers to each newly created or 
346.34  enlarged district. 
346.35     Sec. 33.  Minnesota Statutes 1996, section 122.532, 
346.36  subdivision 3a, is amended to read: 
347.1      Subd. 3a.  [INTERIM CONTRACTUAL AGREEMENTS.] (a) Until a 
347.2   successor contract is executed between the new school board and 
347.3   the exclusive representative of the teachers of the new 
347.4   district, the school boards of both districts and the exclusive 
347.5   representatives of the teachers of both districts may agree: 
347.6      (1) to comply with the contract of either district with 
347.7   respect to all of the teachers assigned to the new district; or 
347.8      (2) that each of the contracts shall apply to the teachers 
347.9   previously subject to the respective contract.  
347.10     (b) In the absence of an agreement according to paragraph 
347.11  (a), the following shall apply: 
347.12     (1) if the effective date is July 1 of an even-numbered 
347.13  year, each of the contracts shall apply to the teachers 
347.14  previously subject to the respective contract and shall be 
347.15  binding on the new school board; or 
347.16     (2) if the effective date is July 1 of an odd-numbered 
347.17  year, the contract of the district that previously employed the 
347.18  largest proportion of teachers assigned to the new district 
347.19  applies to all of the teachers assigned to the new district and 
347.20  shall be binding on the new school board.  The application of 
347.21  this section shall not result in a reduction in a teacher's 
347.22  basic salary, payments for cocurricular or extracurricular 
347.23  assignments, district contributions toward insurance coverages 
347.24  or tax-sheltered annuities, leaves of absence, or severance pay 
347.25  until a successor contract is executed between the new school 
347.26  board and the exclusive representative. 
347.27     Sec. 34.  Minnesota Statutes 1996, section 122.532, 
347.28  subdivision 4, is amended to read: 
347.29     Subd. 4.  [CONTRACTS; TERMINATION; TENURE.] Except as 
347.30  provided in this section, the provisions of section 125.12 or 
347.31  125.17 shall apply to the employment of each teacher by the new 
347.32  employing district on the same basis as they would have applied 
347.33  to the employment if the teacher had been employed by that new 
347.34  district before the effective date of the consolidation or 
347.35  dissolution and attachment.  For the purpose of applying the 
347.36  provisions of subdivision 3, clause (c), and the provisions of 
348.1   section 125.12, subdivision 6b, each school district must be 
348.2   considered to have started school each year on the same date.  
348.3      Sec. 35.  [122.534] [SURPLUS COUNTY SCHOOL TAX FUNDS; 
348.4   DISTRIBUTION.] 
348.5      When, by reason of reorganization of districts, there is a 
348.6   surplus in the county treasury to the credit of the county 
348.7   school tax fund on account of an excessive tax levy already 
348.8   made, and when there is no need for the surplus, the county 
348.9   treasurer shall pay the surplus to the reorganized district upon 
348.10  the order of the county board.  
348.11     Sec. 36.  Minnesota Statutes 1996, section 122.535, is 
348.12  amended to read: 
348.13     122.535 [AGREEMENTS FOR SECONDARY EDUCATION.] 
348.14     Subdivision 1.  [APPLICABILITY.] The provisions of this 
348.15  section shall apply to a district with fewer than 375 pupils 
348.16  enrolled in grades 7 to 12.  
348.17     Subd. 2.  [AGREEMENT.] The school board may enter into one 
348.18  or more agreements providing for instruction of its secondary 
348.19  pupils in one or more districts.  The agreement shall must be 
348.20  effective on July 1 and shall be for a specified or indefinite 
348.21  number of years.  The agreement shall must set forth the 
348.22  obligations of transportation, the tuition to be paid to the 
348.23  providing district, and all additional charges and fees to be 
348.24  paid to the providing district.  The amount of tuition shall not 
348.25  be subject to the provisions of section 124.18, subdivision 2.  
348.26  The agreement may provide for negotiation of a plan for the 
348.27  assignment or employment in a providing district as an exchange 
348.28  teacher according to section 125.13, or placement on unrequested 
348.29  leave of absence of teachers whose positions are discontinued as 
348.30  a result of the agreement.  "Teacher" has the meaning given it 
348.31  in section 125.12, subdivision 1.  
348.32     Subd. 3.  [INFORMATIONAL MEETING.] Before entering into 
348.33  agreements permitted by subdivision 2 of this section, the 
348.34  school board shall must hold a public hearing.  The board shall 
348.35  must publish notice of the hearing in the newspaper with the 
348.36  largest circulation in the district.  If the board proposes to 
349.1   enter into agreements with two or more districts, the board may 
349.2   conduct separate or consolidated hearings.  
349.3      Subd. 4.  [REVIEW AND COMMENT.] After the hearing required 
349.4   by subdivision 3 and before entering into an agreement, the 
349.5   board shall must submit the agreement to the commissioner of 
349.6   children, families, and learning for review and comment.  
349.7      Subd. 5.  [AID PAYMENTS.] A district entering into an 
349.8   agreement permitted in subdivision 2 of this section shall must 
349.9   continue to count its resident pupils who are educated in other 
349.10  districts as resident pupils in the calculation of pupil units 
349.11  for the purposes of state aids, levy limitations, and any other 
349.12  purpose.  A district may continue to provide transportation and 
349.13  collect transportation aid for its resident pupils.  For 
349.14  purposes of aid calculations, the commissioner of children, 
349.15  families, and learning may adjust the cost per eligible pupil 
349.16  transported to reflect changes in cost resulting from the 
349.17  agreement, if any.  
349.18     Subd. 6.  [SEVERANCE PAY.] A district shall must pay 
349.19  severance pay to a teacher who is placed on unrequested leave of 
349.20  absence by the district as a result of the agreement.  A teacher 
349.21  is eligible under this subdivision if the teacher: 
349.22     (1) is a teacher, as defined in section 125.12, subdivision 
349.23  1, but not a superintendent; 
349.24     (2) has a continuing contract with the district according 
349.25  to section 125.12, subdivision 4. 
349.26     The amount of severance pay shall must be equal to the 
349.27  teacher's salary for the school year during which the teacher 
349.28  was placed on unrequested leave of absence minus the gross 
349.29  amount the teacher was paid during the 12 months following the 
349.30  teacher's termination of salary, by an entity whose teachers by 
349.31  statute or rule must possess a valid Minnesota teaching license, 
349.32  and minus the amount a teacher receives as severance or other 
349.33  similar pay according to a contract with the district or 
349.34  district policy.  These entities requiring a valid Minnesota 
349.35  teaching license include, but are not limited to, the school 
349.36  district that placed the teacher on unrequested leave of 
350.1   absence, another school district in Minnesota, an education 
350.2   district, an intermediate school district, a SC, a board formed 
350.3   under section 471.59, a state residential academy, the Lola and 
350.4   Rudy Perpich Minnesota center for arts education, a vocational 
350.5   center, or a special education cooperative.  These entities do 
350.6   not include a school district in another state, a Minnesota 
350.7   public post-secondary institution, or a state agency.  Only 
350.8   amounts earned by the teacher as a substitute teacher or in a 
350.9   position requiring a valid Minnesota teaching license shall be 
350.10  subtracted.  A teacher may decline any offer of employment as a 
350.11  teacher without loss of rights to severance pay. 
350.12     To determine the amount of severance pay that is due for 
350.13  the first six months following termination of the teacher's 
350.14  salary, the district may require the teacher to provide 
350.15  documented evidence of the teacher's employers and gross 
350.16  earnings during that period.  The district shall must pay the 
350.17  teacher the amount of severance pay it determines to be due from 
350.18  the proceeds of the levy for this purpose.  To determine the 
350.19  amount of severance pay that is due for the second six months of 
350.20  the 12 months following the termination of the teacher's salary, 
350.21  the district may require the teacher to provide documented 
350.22  evidence of the teacher's employers and gross earnings during 
350.23  that period.  The district shall must pay the teacher the amount 
350.24  of severance pay it determines to be due from the proceeds of 
350.25  the levy for this purpose.  
350.26     A teacher who receives severance pay under this subdivision 
350.27  waives all further reinstatement rights under section 125.12, 
350.28  subdivision 6a or 6b.  If the teacher receives severance pay, 
350.29  the teacher shall not receive credit for any years of service in 
350.30  the district paying severance pay prior to the year in which the 
350.31  teacher becomes eligible to receive severance pay. 
350.32     The severance pay is subject to section 465.72.  The 
350.33  district may levy annually according to section 124.912, 
350.34  subdivision 1, for the severance pay.  
350.35     Sec. 37.  [122.537] [JOINT POWERS AGREEMENTS FOR 
350.36  FACILITIES.] 
351.1      Subdivision 1.  [INSTRUCTIONAL FACILITIES.] Any group of 
351.2   districts may form a joint powers district under section 471.59 
351.3   representing all participating districts to build or acquire a 
351.4   facility to be used for instructional purposes.  The joint 
351.5   powers board must submit the project for review and comment 
351.6   under section 121.15.  The joint powers board must hold a 
351.7   hearing on the proposal.  The joint powers district must submit 
351.8   the question of authorizing the borrowing of funds for the 
351.9   project to the voters of the joint powers district at a special 
351.10  election.  The question submitted shall state the total amount 
351.11  of funding needed from all sources.  The joint powers board may 
351.12  issue the bonds according to chapter 475 and certify the levy 
351.13  required by section 475.61 only if a majority of those voting on 
351.14  the question vote in the affirmative and only after the school 
351.15  boards of each member district have adopted a resolution 
351.16  pledging the full faith and credit of that district.  The 
351.17  resolution shall irrevocably commit that district to pay a 
351.18  proportionate share, based on pupil units, of any debt levy 
351.19  shortages that, together with other funds available, would allow 
351.20  the joint powers board to pay the principal and interest on the 
351.21  obligations.  The district's payment of its proportionate share 
351.22  of the shortfall shall be made from the district's capital 
351.23  expenditure fund.  The clerk of the joint powers board must 
351.24  certify the vote of the bond election to the commissioner. 
351.25     Subd. 2.  [SHARED FACILITIES.] A group of governmental 
351.26  units may form a joint powers district under section 471.59 
351.27  representing all participating units to build or acquire a 
351.28  facility.  The joint powers board must submit the project for 
351.29  review and comment under section 121.15.  The joint powers board 
351.30  must hold a hearing on the proposal.  The joint powers district 
351.31  must submit the question of authorizing the borrowing of funds 
351.32  for the project to the voters of the joint powers district at a 
351.33  special election.  The question submitted shall state the total 
351.34  amount of funding needed from all sources.  The joint powers 
351.35  board may issue the bonds according to chapter 475 and certify 
351.36  the levy required by section 475.61 only if a majority of those 
352.1   voting on the question vote in the affirmative and only after 
352.2   the boards of each member unit have adopted a resolution 
352.3   pledging the full faith and credit of that unit.  The resolution 
352.4   must irrevocably commit that unit to pay an agreed upon share of 
352.5   any debt levy shortages that, together with other funds 
352.6   available, would allow the joint powers board to pay the 
352.7   principal and interest on the obligations.  The clerk of the 
352.8   joint powers board must certify the vote of the bond election to 
352.9   the commissioner. 
352.10     Sec. 38.  Minnesota Statutes 1996, section 122.541, is 
352.11  amended to read: 
352.12     122.541 [INTERDISTRICT COOPERATION.] 
352.13     Subdivision 1.  [DISTRICT REQUIREMENTS.] The school boards 
352.14  of two or more districts may, after consultation with the 
352.15  department of children, families, and learning, enter into an 
352.16  agreement providing for:  
352.17     (1) discontinuance by all districts except one of at least 
352.18  the 10th, 11th, and 12th grades; and 
352.19     (2) instruction of the pupils in the discontinued grades in 
352.20  one of the cooperating districts.  Each district shall must 
352.21  continue to operate a school with at least three grades.  Before 
352.22  entering into a final agreement, the boards shall must provide a 
352.23  copy of this agreement to the commissioner of children, 
352.24  families, and learning.  
352.25     Subd. 2.  [AID; TRANSPORTATION.] (a) Each district shall 
352.26  must continue to count its resident pupils who are educated in a 
352.27  cooperating district as resident pupils in the calculation of 
352.28  pupil units for all purposes.  The agreement shall must provide 
352.29  for tuition payments between or among the districts.  
352.30     (b) Each district shall must continue to provide 
352.31  transportation and collect transportation aid for its resident 
352.32  pupils pursuant to sections 123.39, 124.223, and 124.225.  A 
352.33  district may provide some or all transportation to its resident 
352.34  pupils by contracting with a cooperating district.  For purposes 
352.35  of section 124.225, the commissioner may adjust the base cost 
352.36  per eligible pupil transported to reflect changes in costs 
353.1   resulting from the agreement.  
353.2      Subd. 3.  [TEACHER DEFINED.] As used in this section, the 
353.3   term "teacher" has the meaning given it in section 125.12, 
353.4   subdivision 1. 
353.5      Subd. 4.  [NEGOTIATED PLAN FOR DISCONTINUED TEACHERS.] 
353.6   The school board and exclusive bargaining representative of the 
353.7   teachers in each district discontinuing grades may negotiate a 
353.8   plan to assign or employ in a cooperating district or to place 
353.9   on unrequested leave of absence all teachers whose positions are 
353.10  discontinued as a result of the agreement.  The school board and 
353.11  exclusive bargaining representative of the teachers in each 
353.12  district providing instruction to nonresident pupils may 
353.13  negotiate a plan to employ teachers from a cooperating district 
353.14  whose positions are discontinued as a result of the agreement.  
353.15  If plans are negotiated and if the boards determine the plans 
353.16  are compatible, the boards shall include the plans in their 
353.17  agreement.  
353.18     Subd. 5.  [COMBINED SENIORITY LIST.] If compatible plans 
353.19  are not negotiated before the March 1 preceding any year of the 
353.20  agreement, the cooperating districts shall be governed by this 
353.21  subdivision.  Insofar as possible, teachers who have acquired 
353.22  continuing contract rights and whose positions are discontinued 
353.23  as a result of the agreement shall be employed by a cooperating 
353.24  district or assigned to teach in a cooperating district as 
353.25  exchange teachers pursuant to section 125.13.  If necessary, 
353.26  teachers whose positions are discontinued as a result of the 
353.27  agreement and who have acquired continuing contract rights shall 
353.28  be placed on unrequested leave of absence in fields in which 
353.29  they are licensed in the inverse order in which they were 
353.30  employed by a cooperating district, according to a combined 
353.31  seniority list of teachers in the cooperating districts.  For 
353.32  the purpose of establishing a combined seniority list, each 
353.33  school district must be considered to have started school each 
353.34  year on the same date. 
353.35     Subd. 6.  [NOTICE AND HEARING.] Prior to entering into an 
353.36  agreement, the school board shall consult with the community at 
354.1   an informational meeting.  The board shall must publish notice 
354.2   of the meeting in the official newspaper of the district and may 
354.3   send written notice of the meeting to parents of pupils who 
354.4   would be affected.  
354.5      Subd. 7.  [MEETING LOCATION.] Notwithstanding any law to 
354.6   the contrary, school boards that have an agreement may hold a 
354.7   valid joint meeting at any location that would be permissible 
354.8   for one of the school boards participating in the meeting.  A 
354.9   school board that has an agreement may hold a meeting in any 
354.10  district that is a party to the agreement.  The school board 
354.11  shall comply with section 471.705 and any other law applicable 
354.12  to a meeting of a school board. 
354.13     Sec. 39.  Minnesota Statutes 1996, section 122.895, is 
354.14  amended to read: 
354.15     122.895 [EMPLOYEES OF COOPERATIVE DISTRICTS UPON 
354.16  DISSOLUTION OR WITHDRAWAL.] 
354.17     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
354.18  section, the terms defined in this subdivision have the meanings 
354.19  given them. 
354.20     (a) "Teacher" means a teacher as defined in section 125.12, 
354.21  subdivision 1, who is employed by a district or center listed in 
354.22  subdivision 2, except that it does not include a superintendent. 
354.23     (b) "Cooperative" means any district or center to which 
354.24  this section applies. 
354.25     (c) "Withdrawal" means a school district's removal of its 
354.26  students from a program of instruction, counseling, or 
354.27  evaluation provided by a cooperative in order to provide the 
354.28  same educational services by other means. 
354.29     (d) "Education support position" means a position not 
354.30  requiring a teaching license in which an employee assists a 
354.31  teacher by providing instructional, counseling, or evaluative 
354.32  support services directly to students. 
354.33     (e) "Education support employee" means an employee holding 
354.34  an education support position. 
354.35     Subd. 2.  [APPLICABILITY.] This section applies to: 
354.36     (1) an education district organized according to sections 
355.1   122.91 to 122.95; 
355.2      (2) a cooperative vocational center organized according to 
355.3   section 123.351; 
355.4      (3) a joint powers district or board organized according to 
355.5   section 471.59 which employs teachers to provide instruction; 
355.6      (4) an intermediate district organized according to chapter 
355.7   136D; 
355.8      (5) a service cooperative which employs teachers to provide 
355.9   instruction; and 
355.10     (6) school districts participating in an agreement for the 
355.11  cooperative provision of special education services to children 
355.12  with disabilities according to section 120.17, subdivision 4. 
355.13     Subd. 2a.  [AGREEMENTS FOR COOPERATIVE SPECIAL EDUCATION.] 
355.14  (a) Upon the termination of an agreement according to section 
355.15  120.17, subdivision 4, a teacher employed to provide special 
355.16  education services by a school district participating in the 
355.17  agreement will be afforded rights to employment by other school 
355.18  districts according to subdivisions 3, 4, and 5.  Nonlicensed 
355.19  employees of a participating district employed to provide 
355.20  special education services will, upon the agreement's 
355.21  termination, be afforded rights to employment by other 
355.22  participating districts according to subdivision 8. 
355.23     (b) Upon a school district's withdrawal from the 
355.24  cooperative provision of special education under an agreement 
355.25  according to section 120.17, subdivision 4, a teacher employed 
355.26  to provide special education services by a participating 
355.27  district will be afforded rights to employment by other school 
355.28  districts according to subdivisions 3, 6, and 7.  Nonlicensed 
355.29  employees of a participating district employed to provide 
355.30  special education services will be afforded rights to employment 
355.31  by the withdrawing district according to subdivision 9. 
355.32     Subd. 3.  [NOTIFICATION OF TEACHERS.] In any year in which 
355.33  a cooperative dissolves or a member withdraws from a 
355.34  cooperative, the governing board of a cooperative shall must 
355.35  provide all teachers employed by the cooperative written 
355.36  notification by March 10 of: 
356.1      (1) the dissolution of the cooperative and the effective 
356.2   date of dissolution; or 
356.3      (2) the withdrawal of a member of the cooperative and the 
356.4   effective date of withdrawal. 
356.5      Subd. 4.  [RIGHTS OF A TEACHER WITH A CONTINUING CONTRACT 
356.6   IN A MEMBER DISTRICT UPON DISSOLUTION.] (a) This subdivision 
356.7   applies to a teacher previously employed in a member district 
356.8   who: 
356.9      (1) had a continuing contract with that member district; 
356.10     (2) has been continuously employed immediately after 
356.11  leaving that member district by one or more cooperatives that 
356.12  provided instruction to pupils enrolled in that member district; 
356.13  and 
356.14     (3) is either a probationary teacher or has a continuing 
356.15  contract with the cooperative that is dissolving. 
356.16     (b) A teacher may elect to resume the teacher's continuing 
356.17  contract with the member district by which the teacher was 
356.18  previously employed by filing a written notice of the election 
356.19  with the member school board on or before March 20.  Failure by 
356.20  a teacher to file a written notice by March 20 of the year the 
356.21  teacher receives a notice according to subdivision 3 constitutes 
356.22  a waiver of the teacher's rights under this subdivision. 
356.23     The member district shall must make reasonable realignments 
356.24  of positions to accommodate the seniority rights of a teacher 
356.25  electing to resume continuing contract rights in the member 
356.26  district according to this subdivision. 
356.27     Upon returning the teacher shall receive credit for: 
356.28     (1) all years of continuous service under contract with the 
356.29  cooperative and the member district for all purposes relating to 
356.30  seniority, compensation, and employment benefits; and 
356.31     (2) the teacher's current educational attainment on the 
356.32  member district's salary schedule.  
356.33     (c) A teacher who does not elect to return to the member 
356.34  district according to this subdivision may exercise rights under 
356.35  subdivision 5. 
356.36     Subd. 5.  [RIGHTS OF OTHER TEACHERS.] (a) This subdivision 
357.1   applies to a teacher who: 
357.2      (1) has a continuing contract with the cooperative; and 
357.3      (2) either did not have a continuing contract with any 
357.4   member district or does not return to a member district 
357.5   according to the procedures set forth in subdivision 4, 
357.6   paragraph (b). 
357.7      (b) By May 10 of the school year in which the cooperative 
357.8   provides the notice required by subdivision 3, clause (1), the 
357.9   cooperative shall must provide to each teacher described in 
357.10  subdivision 4 and this subdivision a written notice of available 
357.11  teaching positions in any member district to which the 
357.12  cooperative was providing services at the time of dissolution.  
357.13  Available teaching positions are all teaching positions that, 
357.14  during the school year following dissolution: 
357.15     (1) are positions for which the teacher is licensed; and 
357.16     (2) are not assigned to a continuing contract teacher 
357.17  employed by a member school district after any reasonable 
357.18  realignments which may be necessary under the applicable 
357.19  provisions of section 125.12, subdivision 6a or 6b, to 
357.20  accommodate the seniority rights of teachers employed by the 
357.21  member district. 
357.22     (c) On or before June 1 of the school year in which the 
357.23  cooperative provides the notice required by subdivision 3, 
357.24  clause (1), any teacher wishing to do so must file with the 
357.25  school board a written notice of the teacher's intention to 
357.26  exercise the teacher's rights to an available teaching 
357.27  position.  Available teaching positions shall must be offered to 
357.28  teachers in order of their seniority within the dissolved 
357.29  cooperative. 
357.30     (d) Paragraph (e) applies to: 
357.31     (1) a district that was a member of a dissolved 
357.32  cooperative; or 
357.33     (2) any other district that, except as a result of open 
357.34  enrollment according to section 120.062, provides essentially 
357.35  the same instruction provided by the dissolved cooperative to 
357.36  pupils enrolled in a former member district. 
358.1      (e) For five years following dissolution of a cooperative, 
358.2   a district to which this paragraph applies may not appoint a new 
358.3   teacher or assign a probationary or provisionally licensed 
358.4   teacher to any position requiring licensure in a field in which 
358.5   the dissolved cooperative provided instruction until the 
358.6   following conditions are met: 
358.7      (1) a district to which this paragraph applies has provided 
358.8   each teacher formerly employed by the dissolved cooperative, who 
358.9   holds the requisite license, written notice of the position; and 
358.10     (2) no teacher holding the requisite license has filed a 
358.11  written request to be appointed to the position with the school 
358.12  board within 30 days of receiving the notice. 
358.13     If no teacher files a request according to clause (2), the 
358.14  district may fill the position as it sees fit.  During any part 
358.15  of the school year in which dissolution occurs and the first 
358.16  school year following dissolution, a teacher may file a request 
358.17  for an appointment according to this paragraph regardless of 
358.18  prior contractual commitments with other member districts.  
358.19  Available teaching positions shall must be offered to teachers 
358.20  in order of their seniority on a combined seniority list of the 
358.21  teachers employed by the cooperative and the appointing district.
358.22     (f) A teacher appointed according to this subdivision is 
358.23  not required to serve a probationary period.  The teacher shall 
358.24  receive credit on the appointing district's salary schedule for 
358.25  the teacher's years of continuous service under contract with 
358.26  the cooperative and the member district and the teacher's 
358.27  educational attainment at the time of appointment or shall 
358.28  receive a comparable salary, whichever is less.  The teacher 
358.29  shall receive credit for accumulations of sick leave and rights 
358.30  to severance benefits as if the teacher had been employed by the 
358.31  member district during the teacher's years of employment by the 
358.32  cooperative.  
358.33     Subd. 6.  [RIGHTS OF A TEACHER WITH A CONTINUING CONTRACT 
358.34  IN A MEMBER DISTRICT UPON WITHDRAWAL OF THE DISTRICT.] (a) This 
358.35  subdivision applies to a teacher previously employed by a member 
358.36  district who: 
359.1      (1) had a continuing contract with the member district 
359.2   which withdraws from a cooperative; 
359.3      (2) has been continuously employed immediately after 
359.4   leaving that member district by one or more cooperatives that 
359.5   provided instruction to pupils enrolled in that member district; 
359.6   and 
359.7      (3) is either a probationary teacher or has a continuing 
359.8   contract with the cooperative from which the member district is 
359.9   withdrawing. 
359.10     (b) A teacher may elect to resume the teacher's continuing 
359.11  contract with the withdrawing district by which the teacher was 
359.12  previously employed by filing a written notice of the election 
359.13  with the withdrawing school board on or before March 20.  
359.14  Failure by a teacher to file written notice by March 20 of the 
359.15  year the teacher receives a notice according to subdivision 3 
359.16  constitutes a waiver of a teacher's rights under this 
359.17  subdivision. 
359.18     The member district shall must make reasonable realignments 
359.19  of positions to accommodate the seniority rights of a teacher 
359.20  electing to resume continuing contract rights in the member 
359.21  district according to this subdivision. 
359.22     Upon returning, the teacher shall receive credit for: 
359.23     (1) all years of continuous service under contract with the 
359.24  cooperative and the member district for all purposes relating to 
359.25  seniority, compensation, and employment benefits; and 
359.26     (2) the teacher's current educational attainment on the 
359.27  member district's salary schedule. 
359.28     Subd. 7.  [RIGHTS OF A TEACHER PLACED ON UNREQUESTED LEAVE 
359.29  UPON WITHDRAWAL.] (a) This subdivision applies to a teacher who 
359.30  is placed on unrequested leave of absence, according to section 
359.31  125.12, subdivision 6a or 6b, in the year in which the 
359.32  cooperative provides the notice required by subdivision 3, 
359.33  clause (2), by a cooperative from which a member district is 
359.34  withdrawing. 
359.35     This subdivision applies to a district that, except as a 
359.36  result of open enrollment according to section 120.062, provides 
360.1   essentially the same instruction provided by the cooperative to 
360.2   pupils enrolled in the withdrawing district. 
360.3      (b) A teacher shall be appointed by a district to which 
360.4   this subdivision applies to an available teaching position which:
360.5      (1) is in a field of licensure in which pupils enrolled in 
360.6   the withdrawing district received instruction from the 
360.7   cooperative; and 
360.8      (2) is within the teacher's field of licensure. 
360.9      For the purpose of this paragraph, an available teaching 
360.10  position means any position that is vacant or would otherwise be 
360.11  occupied by a probationary or provisionally licensed teacher. 
360.12     (c) A board may not appoint a new teacher to an available 
360.13  teaching position unless no teacher holding the requisite 
360.14  license on unrequested leave from the cooperative has filed a 
360.15  written request for appointment.  The request shall must be 
360.16  filed with the board of the appointing district within 30 days 
360.17  of receiving written notice from the appointing board that it 
360.18  has an available teaching position.  If no teacher holding the 
360.19  requisite license files a request according to this paragraph, 
360.20  the district may fill the position as it sees fit.  Available 
360.21  teaching positions shall must be offered to teachers in order of 
360.22  their seniority on a combined seniority list of the teachers 
360.23  employed by the cooperative and the withdrawing member district. 
360.24     (d) A teacher appointed according to this subdivision is 
360.25  not required to serve a probationary period.  The teacher shall 
360.26  receive credit on the appointing district's salary schedule for 
360.27  the teacher's years of continuous service under contract with 
360.28  the cooperative and the member district and the teacher's 
360.29  educational attainment at the time of appointment or shall 
360.30  receive a comparable salary, whichever is less.  The teacher 
360.31  shall receive credit for accumulations of sick leave and rights 
360.32  to severance benefits as if the teacher had been employed by the 
360.33  member district during the teacher's years of employment by the 
360.34  cooperative. 
360.35     Subd. 8.  [NONLICENSED EMPLOYEES UPON DISSOLUTION.] (a) A 
360.36  nonlicensed employee who is terminated by a cooperative that 
361.1   dissolves shall be appointed by a district that is a member of 
361.2   the dissolved cooperative to a position that is created within 
361.3   36 months of the dissolution of the cooperative and is created 
361.4   as a result of the dissolution of the cooperative.  A position 
361.5   shall must be offered to a nonlicensed employee, who fulfills 
361.6   the qualifications for that position, in order of the employee's 
361.7   seniority within the dissolved cooperative. 
361.8      (b) When an education support employee is terminated by a 
361.9   cooperative that dissolves, a district that is a member of the 
361.10  dissolved cooperative shall must appoint the employee to an 
361.11  education support position if the position is created within 36 
361.12  months of the dissolution of the cooperative as a result of the 
361.13  dissolution.  An education support position shall must be 
361.14  offered to an education support employee, who fulfills the 
361.15  qualifications for that position, in order of the employee's 
361.16  seniority within the dissolved cooperative. 
361.17     (c) An employee appointed according to this subdivision 
361.18  shall receive credit for the employee's: 
361.19     (1) continuous years of service with the cooperative on the 
361.20  appointing district's compensation schedule and seniority list; 
361.21  and 
361.22     (2) unused sick leave accumulated while employed by the 
361.23  cooperative. 
361.24     (d) Notwithstanding section 179A.12 or Minnesota Rules, 
361.25  part 5510.0510, subparts 1 to 4, a representation petition 
361.26  seeking the exclusive representation of a unit of education 
361.27  support employees employed by a district formerly a member of a 
361.28  dissolved cooperative may be considered by the commissioner of 
361.29  the bureau of mediation services at any time within 11 months of 
361.30  the dissolution of the cooperative. 
361.31     Subd. 9.  [NONLICENSED EMPLOYEES UPON WITHDRAWAL.] (a) A 
361.32  nonlicensed employee of a cooperative whose active employment is 
361.33  discontinued or reduced as a result of the withdrawal of a 
361.34  member district from the cooperative shall be appointed by the 
361.35  withdrawing member district to a position that is created within 
361.36  36 months of the withdrawal and is created as a result of the 
362.1   withdrawal of the member district.  A position shall must be 
362.2   offered to a nonlicensed employee, who fulfills the 
362.3   qualifications for that position, in order of the employee's 
362.4   seniority within the cooperative from which a member district 
362.5   withdraws. 
362.6      (b) When an education support employee of a cooperative has 
362.7   active employment discontinued or reduced as a result of the 
362.8   withdrawal of a member district from the cooperative, the 
362.9   withdrawing member district shall must appoint the employee to 
362.10  an education support position if the position is created within 
362.11  36 months of the withdrawal as a result of the withdrawal of the 
362.12  member district.  An education support position shall must be 
362.13  offered to an education support employee, who meets the 
362.14  qualifications for that position, in order of the employee's 
362.15  seniority within the cooperative from which a member district 
362.16  withdraws. 
362.17     (c) An employee appointed according to this subdivision 
362.18  shall receive credit for the employee's: 
362.19     (1) continuous years of service with the cooperative on the 
362.20  appointing district's compensation schedule and seniority list; 
362.21  and 
362.22     (2) unused sick leave accumulated while employed by the 
362.23  cooperative. 
362.24     (d) Notwithstanding section 179A.12 or Minnesota Rules, 
362.25  part 5510.0510, subparts 1 to 4, a representation petition 
362.26  seeking the exclusive representation of a unit of education 
362.27  support employees employed by a member district which has 
362.28  withdrawn from a cooperative may be considered by the 
362.29  commissioner of the bureau of mediation services at any time 
362.30  within 11 months of the district's withdrawal from the 
362.31  cooperative. 
362.32     Subd. 10.  [COOPERATIVES THAT MERGE.] Notwithstanding 
362.33  subdivisions 1 to 9, the following paragraphs apply to 
362.34  cooperatives that merge. 
362.35     (a) If a cooperative enters into an agreement to merge with 
362.36  another cooperative, the boards of the cooperatives and the 
363.1   exclusive representatives of the teachers in the cooperatives 
363.2   and the teachers in each member district may negotiate a plan to 
363.3   assign or employ in a member district or to place on unrequested 
363.4   leave of absence all teachers whose positions are discontinued 
363.5   as a result of the agreement.  If plans are negotiated and if 
363.6   the boards determine the plans are compatible, the boards shall 
363.7   must include the plans in their agreement. 
363.8      (b) If compatible plans are not negotiated under paragraph 
363.9   (a) by the March 1 preceding the effective date of the merger of 
363.10  the cooperatives, subdivisions 2 to 9 apply to teachers and 
363.11  nonlicensed employees whose positions are terminated as a result 
363.12  of an agreement to merge cooperatives. 
363.13     Sec. 40.  Minnesota Statutes 1996, section 122.91, is 
363.14  amended to read: 
363.15     122.91 [EDUCATION DISTRICT ESTABLISHMENT.] 
363.16     Subdivision 1.  [PURPOSE.] The purpose of an education 
363.17  district is to increase educational opportunities for learners 
363.18  by increasing cooperation and coordination among school 
363.19  districts, other governmental units, and post-secondary 
363.20  institutions, and to replace other existing cooperative 
363.21  structures. 
363.22     Subd. 2.  [AGREEMENT.] School Boards meeting the 
363.23  requirements of subdivision 3 may enter into a written agreement 
363.24  to establish an education district.  Once established, cities, 
363.25  counties, and other governmental units as defined in section 
363.26  471.59, may become members of the education district.  The 
363.27  agreement and subsequent amendments must be adopted by majority 
363.28  vote of the full membership of each board.  
363.29     Subd. 2a.  [AGREEMENT; SPECIAL PROVISIONS.] The education 
363.30  district agreement may contain a special provision adopted by 
363.31  the vote of a majority of the full membership of each of the 
363.32  boards of the member school districts to allow a post-secondary 
363.33  institution or cities, counties, and other governmental units to 
363.34  become a member of the education district. 
363.35     Subd. 3.  [REQUIREMENTS FOR FORMATION.] An education 
363.36  district must have one of the following at the time of formation:
364.1      (1) at least five districts; 
364.2      (2) at least four districts with a total of at least 5,000 
364.3   pupils in average daily membership; or 
364.4      (3) at least four districts with a total of at least 2,000 
364.5   square miles.  
364.6      Members of an education district must be contiguous.  
364.7   Districts with a cooperation agreement according to section 
364.8   122.541 may belong to an education district only as a unit.  
364.9      A noncontiguous district may be a member of an education 
364.10  district if the state board of education determines that: 
364.11     (1) a district between the education district and the 
364.12  noncontiguous district has considered and is unwilling to become 
364.13  a member; or 
364.14     (2) a noncontiguous configuration of member districts has 
364.15  sufficient technological or other resources to offer effective 
364.16  levels of programs and services. 
364.17     Subd. 3a.  [MEETING WITH REPRESENTATIVES.] Before entering 
364.18  into an agreement, the school board of each member district must 
364.19  meet and confer with the exclusive representatives of the 
364.20  teachers of each school district proposing to enter the 
364.21  education district. 
364.22     Subd. 4.  [NOTICE AND HEARING.] Before entering into an 
364.23  agreement, the school board of each member district shall must 
364.24  publish a summary of the proposed agreement and its effect upon 
364.25  the district at least once in a newspaper of general circulation 
364.26  in the district a summary of the proposed agreement and its 
364.27  effect upon the district.  The board shall must conduct a public 
364.28  hearing on the proposed agreement not more than ten days after 
364.29  the notice and at least 30 days before entering into an 
364.30  agreement.  
364.31     Subd. 6.  [SERVICE COOPERATIVES.] If requested, service 
364.32  cooperatives shall must provide assistance to districts in 
364.33  establishing education districts.  The assistance may include 
364.34  determination of appropriate boundaries of the education 
364.35  district and development of the agreement.  The service 
364.36  cooperatives may provide any other services requested by the 
365.1   education district. 
365.2      Sec. 41.  Minnesota Statutes 1996, section 122.93, 
365.3   subdivision 3, is amended to read: 
365.4      Subd. 3.  [CONTRACTS.] The board may enter into contracts 
365.5   with school districts and other public and private agencies to 
365.6   provide services needed in the education district. 
365.7      Sec. 42.  Minnesota Statutes 1996, section 122.93, 
365.8   subdivision 8, is amended to read: 
365.9      Subd. 8.  [DISCONTINUING GRADES.] The board of a school 
365.10  district that is a member of an education district may 
365.11  discontinue any of kindergarten through grade 12 or part of 
365.12  those grades and provide instruction for those grades or parts 
365.13  of grades within the education district. 
365.14     Sec. 43.  Minnesota Statutes 1996, section 122.95, is 
365.15  amended to read: 
365.16     122.95 [TEACHING POSITIONS.] 
365.17     Subdivision 1.  [DEFINITION.] For the purposes of this 
365.18  section, "teacher" has the meaning given it in section 125.12, 
365.19  subdivision 1, except that it does not include a superintendent. 
365.20     Subd. 1a.  [FILLING POSITIONS; NEGOTIATED AGREEMENTS.] 
365.21  The school boards in all member districts and exclusive 
365.22  bargaining representatives of the teachers in all member 
365.23  districts may negotiate a plan for filling positions resulting 
365.24  from implementation of the education district agreement.  If the 
365.25  plan is negotiated among the member school districts and the 
365.26  exclusive bargaining representative of each member school 
365.27  district and unanimously agreed upon, in writing, the education 
365.28  district shall must include the plan in the education district 
365.29  agreement.  If a plan is not negotiated, the education district 
365.30  is governed by subdivision 2. 
365.31     Subd. 2.  [FILLING POSITIONS.] (a) When an education 
365.32  district board or a member board is filling a position resulting 
365.33  from implementation of the agreement, the board may offer the 
365.34  position to a teacher currently employed by a member district 
365.35  according to the exchange teacher provisions of section 125.13. 
365.36     (b) If the position is not filled by a currently employed 
366.1   teacher, the board shall must offer the position to an available 
366.2   teacher in the order of seniority in fields of licensure on a 
366.3   combined seniority list of all available teachers in the member 
366.4   districts.  For the purpose of establishing a combined seniority 
366.5   list, each school district must be considered to have started 
366.6   school each year on the same date.  An available teacher is a 
366.7   teacher in a member district who:  
366.8      (1) was placed on unrequested leave of absence by a member 
366.9   district, according to section 125.12, subdivision 6a or 6b, or 
366.10  was terminated according to section 125.17, subdivision 11, not 
366.11  more than one year before the initial formation of an education 
366.12  district as a result of an intention to enter into an education 
366.13  district agreement; 
366.14     (2) was placed on unrequested leave of absence by a member 
366.15  district, according to section 125.12, subdivision 6a or 6b, or 
366.16  was terminated according to section 125.17, subdivision 11, as a 
366.17  result of implementing the education district agreement, after 
366.18  the formation of the education district; or 
366.19     (3) is placed on unrequested leave of absence by a member 
366.20  district, according to section 125.12, subdivision 6a or 6b, or 
366.21  is terminated according to section 125.17, subdivision 11, as a 
366.22  result of implementing the education district, in the same year 
366.23  the position is filled. 
366.24     (c) If no currently employed teacher or available teacher 
366.25  accepts the position, the board may fill the position with any 
366.26  other teacher.  
366.27     (d) Any teacher who has been placed on unrequested leave of 
366.28  absence or who has been terminated has a right to a position 
366.29  only as long as the teacher has a right to reinstatement in a 
366.30  member district under section 125.12, subdivision 6a or 6b, or 
366.31  125.17, subdivision 11.  
366.32     Subd. 3.  [PROBATION AND TERMINATION.] Notwithstanding 
366.33  section 125.12, subdivision 3, a teacher who has acquired 
366.34  continuing contract rights in a member district and who 
366.35  transfers employment from a member district to the education 
366.36  district or to another member district does not have to serve a 
367.1   probationary period.  A teacher who is terminated or discharged 
367.2   by a member district according to section 125.12, subdivision 6 
367.3   or 8, or 125.17, subdivision 4, has no right to any position 
367.4   under this section.  
367.5      Subd. 4.  [DETERMINATION OF REASON FOR LEAVE.] When a 
367.6   school board that intends to enter into an education district 
367.7   agreement, and at the time a school board that has entered into 
367.8   an education district agreement places a teacher on unrequested 
367.9   leave of absence, according to section 125.12, subdivision 6a or 
367.10  6b, or terminates a teacher's services under section 125.17, 
367.11  subdivision 11, the board shall must make a determination 
367.12  whether the placement or termination is a result of implementing 
367.13  the education district agreement.  That determination shall must 
367.14  be included in the notice of proposed placement or termination, 
367.15  may be reviewed at a hearing upon request of the teacher, 
367.16  and shall must be included in the notice of final action of the 
367.17  board.  If the determination is not disputed by the teacher 
367.18  before June 1 or the final date required for action by the 
367.19  board, the teacher shall be deemed to acquiesce in the board's 
367.20  determination.  
367.21     Sec. 44.  [122.982] [SERVICE COOPERATIVES.] 
367.22     Subdivision 1.  [ESTABLISHMENT OF SERVICE COOPERATIVES.] 
367.23  (a) Ten service cooperatives, hereafter designated as SCs, are 
367.24  established.  Geographical boundaries for each SC shall coincide 
367.25  with those identified in governor's executive orders 8, dated 
367.26  September 1, 1971, and 59, dated May 29, 1973, issued pursuant 
367.27  to the regional development act of 1969, Minnesota Statutes, 
367.28  sections 462.381 to 462.397, with the following exceptions: 
367.29     (1) development regions one and two shall be combined to 
367.30  form a single SC; 
367.31     (2) development regions six east and six west shall be 
367.32  combined to form a single SC; and 
367.33     (3) development regions seven east and seven west shall be 
367.34  combined to form a single SC. 
367.35     (b) The SC must cooperate with the regional development 
367.36  commission for the region with which its boundaries coincide but 
368.1   shall not be responsible to nor governed by that regional 
368.2   development commission. 
368.3      (c) Two or more identified SCs may, upon approval by a 
368.4   majority of the members in each affected SC, be combined and 
368.5   administered as a single SC. 
368.6      Subd. 2.  [PURPOSE OF SC.] The primary purposes of 
368.7   designation as a SC shall be to perform planning on a regional 
368.8   basis and to assist in meeting specific needs of clients in 
368.9   participating governmental units which could be better provided 
368.10  by a SC than by the members themselves.  The SC must provide 
368.11  those programs and services which are determined, pursuant to 
368.12  subdivision 7, to be priority needs of the particular region and 
368.13  must assist in meeting special needs which arise from 
368.14  fundamental constraints upon individual members. 
368.15     Subd. 3.  [MEMBERSHIP AND PARTICIPATION.] Full membership 
368.16  in a SC shall be limited to public school districts, cities, 
368.17  counties, and other governmental units as defined in section 
368.18  471.59, but nonvoting memberships shall be available to 
368.19  nonpublic school administrative units and other partnership 
368.20  agencies or organizations within the SC.  A school district, 
368.21  city, county, or other governmental unit or nonprofit 
368.22  organization may belong to one or more SCs.  Participation in 
368.23  programs and services provided by the SC shall be 
368.24  discretionary.  No school district, city, county, or other 
368.25  governmental unit shall be compelled to participate in these 
368.26  services under authority of this section.  Nonpublic school 
368.27  students and personnel are encouraged to participate in programs 
368.28  and services to the extent allowed by law. 
368.29     Subd. 4.  [GOVERNING BOARD.] (a) The care, management, and 
368.30  control of a SC shall be vested in a board of directors composed 
368.31  of not less than six nor more than 15 members.  A majority of 
368.32  the members of the SC board of directors shall be current 
368.33  members of school boards of participating public school 
368.34  districts.  Election of the school board members to the SC board 
368.35  of directors shall be by vote of all current school board 
368.36  members of participating public school districts with each 
369.1   school board member having one vote.  The remaining board 
369.2   members may be representatives at large appointed by the board 
369.3   members or elected as representatives by other participating 
369.4   agencies, such as cities, counties, or other governmental units. 
369.5      (b) The election timeline shall be compatible with those 
369.6   for school board members and shall be addressed within the 
369.7   bylaws of each SC.  
369.8      (c) A vacancy on the SC board which results in an unexpired 
369.9   term may be filled by appointment by the SC board of directors 
369.10  until such vacancy can be filled at the next board election. 
369.11     (d) At the organizational meeting, the SC board shall 
369.12  choose its officers and conduct any other necessary 
369.13  organizational business.  The SC board may, at its discretion, 
369.14  appoint up to three members at large to the SC board as ex 
369.15  officio, nonvoting members of the board and shall encourage the 
369.16  advisory participation of a cross-section of school and agency 
369.17  personnel within the SC to the extent allowed by law. 
369.18     (e) The officers of the SC board shall be a chair, 
369.19  vice-chair, clerk, and treasurer, no two of whom when possible 
369.20  shall be from the same agency. 
369.21     (f) A member of the SC board shall have the same liability 
369.22  applicable to a member of an independent school board or other 
369.23  elected governmental officials. 
369.24     Subd. 5.  [DUTIES AND POWERS OF SC BOARD OF DIRECTORS.] The 
369.25  board of directors shall have authority to maintain and operate 
369.26  a SC.  Subject to the availability of necessary resources, the 
369.27  powers and duties of this board shall include the following: 
369.28     (a) The board of directors shall submit, by June 1 of each 
369.29  year to each participating member, an annual plan which 
369.30  describes the objectives and procedures to be implemented in 
369.31  assisting in resolution of the needs of the SC.  
369.32     (b) The SC board of directors shall provide adequate 
369.33  office, service center, and administrative facilities by lease, 
369.34  purchase, gift, or otherwise.  
369.35     (c) The SC board of directors shall employ a central 
369.36  administrative staff and other personnel as necessary to provide 
370.1   and support the agreed upon programs and services.  The board 
370.2   may discharge staff and personnel pursuant to applicable 
370.3   provisions of law.  SC staff and personnel may participate in 
370.4   retirement programs and any other programs available to public 
370.5   school staff and personnel.  
370.6      (d) The SC board of directors may appoint special advisory 
370.7   committees composed of superintendents, central office 
370.8   personnel, building principals, teachers, parents, lay persons, 
370.9   and representatives from cities, counties, and other 
370.10  governmental units.  
370.11     (e) The SC board of directors may employ service area 
370.12  personnel pursuant to licensure and certification standards 
370.13  developed by the appropriate state agency such as the state 
370.14  board and the state board of teaching.  
370.15     (f) The SC board of directors may enter into contracts with 
370.16  school boards of local districts including school districts 
370.17  outside the SC area.  
370.18     (g) The SC board of directors may enter into contracts with 
370.19  other public and private agencies and institutions to provide 
370.20  administrative staff and other personnel as necessary to furnish 
370.21  and support the agreed upon programs and services.  
370.22     (h) The SC board of directors shall exercise all powers and 
370.23  carry out all duties delegated to it by members under provisions 
370.24  of the SC bylaws.  The SC board of directors shall be governed, 
370.25  when not otherwise provided, by applicable laws of the state. 
370.26     (i) The SC board of directors shall submit an annual 
370.27  evaluation report of the effectiveness of programs and services 
370.28  to the members by September 1 of each year following the 
370.29  previous June 30 in which the programs and services were 
370.30  provided.  
370.31     (j) The SC board is encouraged to establish cooperative, 
370.32  working relationships and partnerships with post-secondary 
370.33  educational institutions, other public agencies, business, and 
370.34  industry.  
370.35     Subd. 6.  [APPOINTMENT OF AN ADVISORY COUNCIL.] There may 
370.36  be advisory councils selected to give advice and counsel to the 
371.1   SC board of directors.  The councils may be composed of 
371.2   representatives from public and nonpublic schools, cities, 
371.3   counties, and other governmental units.  
371.4      Subd. 7.  [EDUCATIONAL PROGRAMS AND SERVICES.] The board of 
371.5   directors of each SC shall submit annually a plan to the 
371.6   members.  The plan shall identify the programs and services 
371.7   which are suggested for implementation by the SC during the 
371.8   following year and shall contain components of long-range 
371.9   planning determined by the SC.  These programs and services may 
371.10  include, but are not limited to, the following areas: 
371.11     (1) administrative services; 
371.12     (2) curriculum development; 
371.13     (3) data processing; 
371.14     (4) distance learning and other telecommunication services; 
371.15     (5) evaluation and research; 
371.16     (6) staff development; 
371.17     (7) media and technology centers; 
371.18     (8) publication and dissemination of materials; 
371.19     (9) pupil personnel services; 
371.20     (10) planning; 
371.21     (11) secondary, post-secondary, community, adult, and adult 
371.22  vocational education; 
371.23     (12) teaching and learning services, including services for 
371.24  students with special talents and special needs; 
371.25     (13) employee personnel services; 
371.26     (14) vocational rehabilitation; 
371.27     (15) health, diagnostic, and child development services and 
371.28  centers; 
371.29     (16) leadership or direction in early childhood and family 
371.30  education; 
371.31     (17) community services; 
371.32     (18) shared time programs; 
371.33     (19) fiscal services and risk management programs; 
371.34     (20) technology planning, training, and support services; 
371.35     (21) health and safety services; 
371.36     (22) student academic challenges; and 
372.1      (23) cooperative purchasing services. 
372.2      Subd. 8.  [TECHNICAL ASSISTANCE.] Service cooperatives 
372.3   shall, to the extent possible, make technical assistance for 
372.4   long-range planning available to school districts upon request 
372.5   and shall establish a common database for local and regional 
372.6   decision making.  
372.7      Subd. 9.  [FINANCIAL SUPPORT FOR THE SERVICE 
372.8   COOPERATIVES.] (a) Financial support for SC programs and 
372.9   services shall be provided by participating members with 
372.10  private, state, and federal financial support supplementing as 
372.11  available.  The SC board of directors may, in each year, for the 
372.12  purpose of paying any administrative, planning, operating, or 
372.13  capital expenses incurred or to be incurred, assess and certify 
372.14  to each participating school district, nonpublic school 
372.15  administrative unit, city, county, and other governmental unit 
372.16  its proportionate share of all expenses.  This share shall be 
372.17  based upon the extent of participation by each school district, 
372.18  nonpublic school administrative unit, city, county, or other 
372.19  governmental unit and shall be in the form of a service fee.  
372.20  Each participating school district, nonpublic school 
372.21  administrative unit, city, county, or other governmental unit 
372.22  shall remit its assessment to the SC board as provided in the SC 
372.23  bylaws.  The assessments shall be paid within the maximum levy 
372.24  limitations of each participating member.  No participating 
372.25  member shall have any additional liability for the debts or 
372.26  obligations of the SC except that assessment which has been 
372.27  certified as its proportionate share and any other liability the 
372.28  member assumes under section 123.35, subdivision 19b. 
372.29     (b) Any property acquired by the SC board is public 
372.30  property to be used for essential public and governmental 
372.31  purposes which shall be exempt from all taxes and special 
372.32  assessments levied by a city, county, state, or political 
372.33  subdivision thereof.  If the SC is dissolved, its property must 
372.34  be distributed to the members at the time of the dissolution. 
372.35     (c) A member may elect to withdraw participation in the SC 
372.36  by a majority vote of its full board membership and upon 
373.1   compliance with the applicable withdrawal provisions of the SC 
373.2   organizational agreement.  The withdrawal shall be effective on 
373.3   the June 30 following receipt by the board of directors of 
373.4   written notification of the withdrawal by February 1 of the same 
373.5   year.  Notwithstanding the withdrawal, the proportionate share 
373.6   of any expenses already certified to the withdrawing member for 
373.7   the SC shall be paid to the SC board. 
373.8      (d) The SC is a public corporation and agency and its board 
373.9   of directors may make application for, accept, and expend 
373.10  private, state, and federal funds that are available for 
373.11  programs of the members.  
373.12     (e) The SC is a public corporation and agency and as such, 
373.13  no earnings or interests of the SC may inure to the benefit of 
373.14  an individual or private entity. 
373.15     Subd. 10.  [ANNUAL MEETING.] Each SC shall conduct a 
373.16  meeting at least annually for its members. 
373.17     Subd. 11.  [JOINT POWERS ACT.] Nothing in this section 
373.18  shall restrict the authority granted to school district boards 
373.19  of education by section 471.59. 
373.20     Sec. 45.  [122.983] [COOPERATIVE CENTERS FOR VOCATIONAL 
373.21  EDUCATION.] 
373.22     Subdivision 1.  [ESTABLISHMENT.] Two or more independent 
373.23  school districts may enter into an agreement to establish a 
373.24  cooperative center to provide for vocational education and other 
373.25  educational services upon the vote of a majority of the full 
373.26  membership of each of the boards of the districts entering into 
373.27  the agreement.  The agreement may also provide for membership by 
373.28  cities, counties, and other governmental units as defined in 
373.29  section 471.59.  When a resolution approving this action has 
373.30  been adopted by the board of a district, the resolution shall be 
373.31  published once in a newspaper of general circulation in the 
373.32  district.  If a petition for referendum on the question of the 
373.33  district entering into the agreement, containing signatures of 
373.34  qualified voters of the district equal to five percent of the 
373.35  number of voters at the last school district general election, 
373.36  is filed with the clerk of the board within 60 days after 
374.1   publication of the resolution, the board must not enter into the 
374.2   agreement until the question has been submitted to the voters of 
374.3   the district at a special election.  This election must be 
374.4   conducted and canvassed in the same manner as school district 
374.5   general elections.  If a majority of the total number of votes 
374.6   cast on the question within the district is in favor of the 
374.7   proposition, the board may enter into an agreement to establish 
374.8   the center for purposes described in this section. 
374.9      Subd. 2.  [NAME.] A public corporation so created shall be 
374.10  known as ....(insert name).... cooperative center no.  .....  
374.11  and shall have an identification number assigned pursuant to 
374.12  section 122.03. 
374.13     Subd. 3.  [GOVERNING BOARD.] (a) The center must be 
374.14  operated by a center board of not less than five members which 
374.15  shall consist of members from boards of each of the 
374.16  participating districts within the center and member cities, 
374.17  counties, and other governmental units, appointed by their 
374.18  respective boards.  Each participating district must have at 
374.19  least one member on the board.  The board must choose an 
374.20  administrative officer to administer board policy and directives 
374.21  who shall serve as an ex officio member of the board but shall 
374.22  not have a vote. 
374.23     (b) The terms of office of the first members of the center 
374.24  board must be determined by lot as follows:  one-third of the 
374.25  members for one year, one-third for two years, and the remainder 
374.26  for three years, all terms to expire on June 30 of the 
374.27  appropriate year; provided that if the number of members is not 
374.28  evenly divisible by three, the membership will be as evenly 
374.29  distributed as possible among one, two and three year terms with 
374.30  the remaining members serving the three year term.  Thereafter 
374.31  the terms shall be for three years commencing on July 1 of each 
374.32  year.  If a vacancy occurs on the center board, it must be 
374.33  filled by the appropriate school board within 90 days.  A person 
374.34  appointed to the center board shall qualify as a board member by 
374.35  filing with the chair a written certificate of appointment from 
374.36  the appointing school board. 
375.1      (c) The first meeting of a center board must be at a time 
375.2   mutually agreed upon by board members.  At this meeting, the 
375.3   center board must choose its officers and conduct any other 
375.4   necessary organizational business. Thereafter the center board 
375.5   must meet on the first of July of each year or as soon 
375.6   thereafter as practicable pursuant to notice sent to all center 
375.7   board members by the chief executive officer of the center. 
375.8      (d) The officers of the center board shall be a chair, 
375.9   vice-chair, clerk and treasurer, no two of whom when possible 
375.10  shall be from the same school district.  The chair shall preside 
375.11  at all meetings of the center board except in the chair's 
375.12  absence the vice-chair shall preside.  The clerk shall keep a 
375.13  complete record of the minutes of each meeting and the treasurer 
375.14  shall be the custodian of the funds of the center.  Insofar as 
375.15  applicable, sections 123.33 and 123.34, shall apply to the board 
375.16  and officers of the center. 
375.17     (e) Each participating district must have equal voting 
375.18  power with at least one vote.  A majority of the center board 
375.19  shall be a quorum.  Any motion other than adjournment shall pass 
375.20  only upon receiving a majority of the votes of the entire center 
375.21  board. 
375.22     Subd. 4.  [POWERS AND DUTIES.] (a) The center board shall 
375.23  have the general charge of the business of the center and the 
375.24  ownership of facilities.  Where applicable, section 123.36, 
375.25  shall apply.  The center board may not issue bonds in its 
375.26  behalf.  Each participating district may issue its bonds for the 
375.27  purpose of acquisition and betterment of center facilities in 
375.28  the amount certified by the center board to such participating 
375.29  district in accordance with chapter 475. 
375.30     (b) The center board (1) may furnish vocational offerings 
375.31  to any eligible person residing in any participating district; 
375.32  (2) may provide special education for the handicapped and 
375.33  disadvantaged; and (3) may provide any other educational 
375.34  programs or services defined in section 123.582, subdivisions 7 
375.35  and 8, agreed upon by the participating members.  Academic 
375.36  offerings shall be provided only under the direction of properly 
376.1   licensed academic supervisory personnel. 
376.2      (c) In accordance with subdivision 5, clause (b), the 
376.3   center board shall certify to each participating district the 
376.4   amount of funds assessed to the district as its proportionate 
376.5   share required for the conduct of the educational programs, 
376.6   payment of indebtedness, and all other proper expenses of the 
376.7   center. 
376.8      (d) The center board must employ and contract with 
376.9   necessary qualified teachers and administrators and may 
376.10  discharge the same for cause pursuant to section 125.12.  The 
376.11  authority for selection and employment of a director shall be 
376.12  vested in the center board.  Notwithstanding the provisions of 
376.13  section 125.12, subdivision 6a or 6b, no individual shall have a 
376.14  right to employment as a director based on seniority or order of 
376.15  employment by the center.  The board may employ and discharge 
376.16  other necessary employees and may contract for other services 
376.17  deemed necessary. 
376.18     (e) The center board may provide an educational program for 
376.19  secondary and adult vocational phases of instruction.  The high 
376.20  school phase of its educational program must be offered as a 
376.21  component of the comprehensive curriculum offered by each of the 
376.22  participating school districts.  Graduation must be from the 
376.23  student's resident high school district.  Insofar as applicable, 
376.24  sections 123.35 to 123.40, shall apply. 
376.25     (f) The center board may prescribe rates of tuition for 
376.26  attendance in its programs by adults and nonmember district 
376.27  secondary students. 
376.28     Subd. 5.  [FINANCING.] (a) Any center board established 
376.29  pursuant to this section is a public corporation and agency and 
376.30  may receive and disburse federal, state, and local funds made 
376.31  available to it.  A participating school district or member must 
376.32  not have any additional individual liability for the debts or 
376.33  obligations of the center except that assessment which has been 
376.34  certified as its proportionate share in accordance with 
376.35  subdivision 5, clause (b) and subdivision 4, clauses (a) and 
376.36  (c).  A member of the center board shall have such liability as 
377.1   is applicable to a member of an independent school district 
377.2   board.  Any property, real or personal, acquired or owned by the 
377.3   center board for its purposes shall be exempt from taxation by 
377.4   the state or any of its political subdivisions. 
377.5      (b) The center board may, in each year, for the purpose of 
377.6   paying any administrative, planning, operating, or capital 
377.7   expenses incurred or to be incurred, assess and certify to each 
377.8   participating school district its proportionate share of any and 
377.9   all expenses.  This share must be based upon an equitable 
377.10  distribution formula agreed upon by the participating 
377.11  districts.  Each participating district shall remit its 
377.12  assessment to the center board within 30 days after receipt.  
377.13  The assessments shall be paid within the maximum levy 
377.14  limitations of each participating district. 
377.15     Subd. 6.  [COMMISSIONER APPROVAL.] Prior to the 
377.16  commencement of the operation of any center the agreement 
377.17  entered into by participating districts shall be approved by the 
377.18  commissioner. 
377.19     Subd. 7.  [LAWS GOVERNING INDEPENDENT SCHOOL DISTRICTS 
377.20  APPLICABLE.] As of the effective date of the creation of any 
377.21  center as contained in the agreement establishing the center, 
377.22  the organization, operation, maintenance, and conduct of the 
377.23  affairs of the center shall be governed by the general laws 
377.24  relating to independent school districts of the state unless 
377.25  provided otherwise herein or by statute passed hereafter. 
377.26     Subd. 8.  [ADDITION AND WITHDRAWAL OF DISTRICTS.] Upon 
377.27  approval by majority vote of a board and of the center board, an 
377.28  adjoining district may become a member in the center and be 
377.29  governed by the provisions of this section and the agreement in 
377.30  effect. 
377.31     Any participating district may withdraw from the center and 
377.32  from the agreement in effect by a majority vote of the full 
377.33  board membership of the participating district desiring 
377.34  withdrawal and upon compliance with provisions in the agreement 
377.35  establishing the center.  Upon receipt of the withdrawal 
377.36  resolution reciting the necessary facts, the center board must 
378.1   file a certified copy with the county auditors of the counties 
378.2   affected.  The withdrawal shall become effective at the end of 
378.3   the next following school year but the withdrawal shall not 
378.4   affect the continued liability of the withdrawing district for 
378.5   bonded indebtedness it incurred prior to the effective 
378.6   withdrawal date. 
378.7      Subd. 8a.  [DISSOLUTION.] The boards of each participating 
378.8   district may agree to dissolve a center effective at the end of 
378.9   any school year or at an earlier time as they may mutually 
378.10  agree.  A dissolution must be accomplished in accordance with 
378.11  any applicable provisions of the agreement establishing the 
378.12  center.  Upon receipt of the dissolution resolutions from the 
378.13  boards of the participating districts, the center board shall 
378.14  file a certified copy with the county auditors of the counties 
378.15  affected.  The dissolution must not affect the continuing 
378.16  liability of the previously participating districts for bonded 
378.17  indebtedness incurred prior to the dissolution, or for other 
378.18  continuing obligations, including reemployment insurance.  
378.19     Subd. 9.  [EXISTING CENTERS.] Centers operating pursuant to 
378.20  section 471.59 which have been approved by the state board of 
378.21  education prior to August 1, 1974, shall be subject to its 
378.22  provisions except subdivision 1.  Any changes in center 
378.23  agreements necessary to comply with this section shall be 
378.24  completed within 12 months after August 1, 1974, and filed with 
378.25  the commissioner by the administrator of each center.  Centers 
378.26  operating pursuant to Laws 1967, chapter 822, as amended, Laws 
378.27  1969, chapter 775, as amended, and Laws 1969, chapter 1060, as 
378.28  amended shall not be subject to the provisions of this section. 
378.29     Subd. 10.  [REVENUE.] A secondary vocational cooperative 
378.30  may be eligible for revenue under section 124.573. 
378.31     Sec. 46.  [122.984] [COOPERATIVE UNIT; FINANCIAL SUPPORT; 
378.32  WITHDRAWAL; APPEAL.] 
378.33     Subdivision 1.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
378.34  SUPPORT.] (a) No district must be required by any type of formal 
378.35  or informal agreement except an agreement to provide building 
378.36  space according to paragraph (f), including a joint powers 
379.1   agreement, or membership in any cooperative unit defined in 
379.2   subdivision 2, paragraph (d), to participate in or provide 
379.3   financial support for the purposes of the agreement for a time 
379.4   period in excess of one fiscal year, or the time period set 
379.5   forth in this subdivision.  Any agreement, part of an agreement, 
379.6   or other type of requirement to the contrary is void. 
379.7      (b) This subdivision shall not affect the continued 
379.8   liability of a district for its share of bonded indebtedness or 
379.9   other debt incurred as a result of any agreement before July 1, 
379.10  1993.  The district is liable only until the obligation or debt 
379.11  is discharged and only according to the payment schedule in 
379.12  effect on July 1, 1993, except that the payment schedule may be 
379.13  altered for the purpose of restructuring debt or refunding bonds 
379.14  outstanding on July 1, 1993, if the annual payments of the 
379.15  district are not increased and if the total obligation of the 
379.16  school district for its share of outstanding bonds or other debt 
379.17  is not increased. 
379.18     (c) To cease participating in or providing financial 
379.19  support for any of the services or activities relating to the 
379.20  agreement or to terminate participation in the agreement, the 
379.21  board must adopt a resolution and notify other parties to the 
379.22  agreement of its decision on or before February 1 of any year.  
379.23  The cessation or withdrawal shall be effective June 30 of the 
379.24  same year except that for a member of an education district 
379.25  organized under sections 122.91 to 122.95 or an intermediate 
379.26  district organized under chapter 136D, cessation or withdrawal 
379.27  shall be effective June 30 of the following fiscal year.  At the 
379.28  option of the board, cessation or withdrawal may be effective 
379.29  June 30 of the following fiscal year for a district 
379.30  participating in any type of agreement.  
379.31     (d) Before issuing bonds or incurring other debt, the 
379.32  governing body responsible for implementing the agreement must 
379.33  adopt a resolution proposing to issue bonds or incur other debt 
379.34  and the proposed financial effect of the bonds or other debt 
379.35  upon each participating district.  The resolution must be 
379.36  adopted within a time sufficient to allow the board to adopt a 
380.1   resolution within the time permitted by this paragraph and to 
380.2   comply with the statutory deadlines set forth in sections 
380.3   122.895, 125.12, and 125.17.  The governing body responsible for 
380.4   implementing the agreement shall notify each participating board 
380.5   of the contents of the resolution.  Within 120 days of receiving 
380.6   the resolution of the governing body, the school board of the 
380.7   participating district shall adopt a resolution stating: 
380.8      (1) its concurrence with issuing bonds or incurring other 
380.9   debt; 
380.10     (2) its intention to cease participating in or providing 
380.11  financial support for the service or activity related to the 
380.12  bonds or other debt; or 
380.13     (3) its intention to terminate participation in the 
380.14  agreement. 
380.15     A board adopting a resolution according to clause (1) is 
380.16  liable for its share of bonded indebtedness or other debt as 
380.17  proposed by the governing body implementing the agreement.  A 
380.18  school board adopting a resolution according to clause (2) is 
380.19  not liable for the bonded indebtedness or other debt, as 
380.20  proposed by the governing body, related to the services or 
380.21  activities in which the district ceases participating or 
380.22  providing financial support.  A board adopting a resolution 
380.23  according to clause (3) is not liable for the bonded 
380.24  indebtedness or other debt proposed by the governing body 
380.25  implementing the agreement. 
380.26     (e) After July 1, 1993, a district is liable according to 
380.27  paragraph (d) for its share of bonded indebtedness or other debt 
380.28  incurred by the governing body implementing the agreement to the 
380.29  extent that the bonds or other debt are directly related to the 
380.30  services or activities in which the district participates or for 
380.31  which the district provides financial support.  The district has 
380.32  continued liability only until the obligation or debt is 
380.33  discharged and only according to the payment schedule in effect 
380.34  at the time the governing body implementing the agreement 
380.35  provides notice to the board, except that the payment schedule 
380.36  may be altered for the purpose of refunding the outstanding 
381.1   bonds or restructuring other debt if the annual payments of the 
381.2   district are not increased and if the total obligation of the 
381.3   district for the outstanding bonds or other debt is not 
381.4   increased. 
381.5      (f) A district that is a member of a cooperative unit as 
381.6   defined in subdivision 19b, paragraph (d), may obligate itself 
381.7   to participate in and provide financial support for an agreement 
381.8   with a cooperative unit to provide school building space for a 
381.9   term not to exceed two years with an option on the part of the 
381.10  district to renew for an additional two years. 
381.11     Subd. 2.  [WITHDRAWING FROM COOPERATIVE.] If a district 
381.12  withdraws from a cooperative unit defined in paragraph (d), the 
381.13  distribution of assets and assignment of liabilities to the 
381.14  withdrawing district shall be determined according to this 
381.15  subdivision. 
381.16     (a) The withdrawing district remains responsible for its 
381.17  share of debt incurred by the cooperative unit according to 
381.18  subdivision 1.  The district and cooperative unit may mutually 
381.19  agree, through a board resolution by each, to terms and 
381.20  conditions of the distribution of assets and the assignment of 
381.21  liabilities.  
381.22     (b) If the cooperative unit and the district cannot agree 
381.23  on the terms and conditions, the commissioner shall resolve the 
381.24  dispute by determining the district's proportionate share of 
381.25  assets and liabilities based on the district's enrollment, 
381.26  financial contribution, usage, or other factor or combination of 
381.27  factors determined appropriate by the commissioner.  The assets 
381.28  must be disbursed to the withdrawing district in a manner that 
381.29  minimizes financial disruption to the cooperative unit.  
381.30     (c) Assets related to an insurance pool shall not be 
381.31  disbursed to a member district under paragraph (b). 
381.32     (d) For the purposes of this section, a cooperative unit is:
381.33     (1) an education district organized under sections 122.91 
381.34  to 122.95; 
381.35     (2) a cooperative vocational center organized under section 
381.36  123.351; 
382.1      (3) an intermediate district organized under chapter 136D; 
382.2      (4) a service cooperative organized under section 123.582; 
382.3   or 
382.4      (5) a regional management information center organized 
382.5   under section 121.935 or as a joint powers district according to 
382.6   section 471.59. 
382.7      Subd. 3.  [APPEAL TO COMMISSIONER.] If a cooperative unit 
382.8   as defined in subdivision 2, paragraph (d), denies membership in 
382.9   the unit to a district, the district may appeal to the 
382.10  commissioner.  The commissioner may require the cooperative unit 
382.11  to grant the district membership. 
382.12     Sec. 47.  [122.985] [PROHIBITED AID AND LEVIES.] 
382.13     Unless specifically permitted in the provision authorizing 
382.14  an aid or a levy, cooperative units of government defined in 
382.15  section 122.984, subdivision 2, paragraph (d), are prohibited 
382.16  from making a property tax levy or qualifying for or receiving 
382.17  any form of state aid except that a cooperative unit may apply 
382.18  for and receive a grant on behalf of its members. 
382.19     Sec. 48.  [122.986] [AREA LEARNING CENTER ORGANIZATION.] 
382.20     Subdivision 1.  [GOVERNANCE.] A district may establish an 
382.21  area learning center either by itself or in cooperation with 
382.22  other districts, a SC, an intermediate school district, a local 
382.23  education and employment transitions partnership, public and 
382.24  private secondary and post-secondary institutions, public 
382.25  agencies, businesses, and foundations.  Except for a district 
382.26  located in a city of the first class, a center must serve the 
382.27  geographic area of at least two districts. 
382.28     Subd. 2.  [RESERVE REVENUE.] Each district that is a member 
382.29  of an area learning center must reserve revenue in an amount 
382.30  equal to at least 90 percent of the basic revenue generated by 
382.31  each student attending an area learning center program under 
382.32  this section.  The amount of reserved revenue under this 
382.33  subdivision may only be spent on program costs associated with 
382.34  the area learning center. 
382.35     Subd. 3.  [ACCESS TO SERVICES.] A center shall have access 
382.36  to the district's regular education programs, technology 
383.1   facilities, and staff.  It may contract with individuals or 
383.2   post-secondary institutions.  It shall seek the involvement of 
383.3   community education programs, post-secondary institutions, 
383.4   community resources, businesses, and other federal, state, and 
383.5   local public agencies.  
383.6      Subd. 4.  [NONRESIDENT PUPILS.] A pupil who does not reside 
383.7   in the district may attend a center without consent of the 
383.8   school board of the district of residence.  
383.9      Sec. 49.  [122.987] [CENTER PROGRAMS AND SERVICES.] 
383.10     Subdivision 1.  [PROGRAM FOCUS.] The programs and services 
383.11  of a center must focus on academic and learning skills, trade 
383.12  and vocational skills, work-based learning opportunities, work 
383.13  experience, youth service to the community, and transition 
383.14  services. 
383.15     Subd. 2.  [PEOPLE TO BE SERVED.] A center shall provide 
383.16  programs for secondary pupils and adults, giving priority to 
383.17  serving persons between 16 and 21 years of age.  Secondary 
383.18  pupils to be served are those who are chemically dependent, not 
383.19  likely to graduate from high school, need assistance in 
383.20  vocational and basic skills, can benefit from employment 
383.21  experiences, and need assistance in transition from school to 
383.22  employment.  Adults to be served are dislocated homemakers and 
383.23  workers and others who need basic educational and social 
383.24  services.  In addition to offering programs, the center shall 
383.25  coordinate the use of other available educational services, 
383.26  social services, and post-secondary institutions in the 
383.27  community.  The center may also provide programs, including 
383.28  work-based, service-learning, and applied learning opportunities 
383.29  developed in collaboration with a local education and employment 
383.30  transitions partnership, for elementary and secondary pupils who 
383.31  are not attending the center to assist them in completing high 
383.32  school. 
383.33     Subd. 3.  [RULES EXEMPTION.] Notwithstanding any law to the 
383.34  contrary, the center programs must be available throughout the 
383.35  entire year.  Pupils in a center may receive instruction for 
383.36  more than or less than the daily number of hours required by the 
384.1   rules of the state board of education.  However, a pupil must 
384.2   receive instruction each year for at least the total number of 
384.3   instructional hours required by statutes and rules.  A center 
384.4   may petition the state board under Minnesota Rules, part 
384.5   3500.1000, for exemption from other rules.  
384.6      Subd. 4.  [GRADUATION.] Upon successful completion of the 
384.7   center program, a pupil is entitled to receive a high school 
384.8   diploma.  The pupil may elect to receive a diploma from either 
384.9   the district of residence or the district in which the center is 
384.10  located. 
384.11     Sec. 50.  [122.9871] [RESOURCE CENTER FOR OTHER PROGRAMS.] 
384.12     An area learning center must serve as a resource for other 
384.13  districts, educational, community, and business organizations.  
384.14  The center may charge a fee for these services.  The following 
384.15  services shall be provided for a region or the state:  
384.16     (1) information and research for alternative programs; 
384.17     (2) regional or state workshops on awareness, 
384.18  identification, programs, and support for these pupils; and 
384.19     (3) recommendations for staff qualifications to ensure the 
384.20  most qualified staff can be selected for the programs. 
384.21     Sec. 51.  [122.9872] [CENTER FUNDING.] 
384.22     Subdivision 1.  [OUTSIDE SOURCES.] A center may accept: 
384.23     (1) resources and services from post-secondary institutions 
384.24  serving center pupils; 
384.25     (2) resources from job training partnership act programs, 
384.26  including funding for jobs skills training for various groups 
384.27  and the percentage reserved for education; 
384.28     (3) resources from the department of human services and 
384.29  county welfare funding; 
384.30     (4) resources from a local education and employment 
384.31  transitions partnership; or 
384.32     (5) private resources, foundation grants, gifts, corporate 
384.33  contributions, and other grants.  
384.34     Subd. 2.  [GENERAL EDUCATION AID.] Payment of general 
384.35  education aid for nonresident pupils enrolled in the center must 
384.36  be made according to section 124A.036, subdivision 5. 
385.1      Sec. 52.  [122.9873] [DESIGNATION AS CENTER.] 
385.2      The commissioner, in cooperation with the state board of 
385.3   education, shall establish a process for state designation and 
385.4   approval of area learning centers that meet the provisions of 
385.5   sections 124C.45 to 124C.48.  Any process for designating and 
385.6   approving an area learning center must emphasize the importance 
385.7   of having the area learning center serve students who have 
385.8   dropped out of school, are homeless, are eligible to receive 
385.9   free or reduced priced lunch, have been suspended or expelled, 
385.10  have been declared truant or are pregnant or parents. 
385.11     Sec. 53.  [REPEALER.] 
385.12     Minnesota Statutes 1996, sections 122.52; and 122.532, 
385.13  subdivision 1, are repealed. 
385.14                             ARTICLE 6 
385.15                            CHAPTER 123
385.16               POWERS AND DUTIES OF SCHOOL DISTRICTS
385.17     Section 1.  Minnesota Statutes 1996, section 123.11, is 
385.18  amended to read: 
385.19     123.11 [COMMON SCHOOL DISTRICTS; MEETINGS, ELECTIONS.] 
385.20     Subdivision 1.  [ANNUAL MEETING.] The annual meeting of all 
385.21  common districts shall must be held on the last Tuesday in June, 
385.22  at 8:00 p.m., unless a different hour has been fixed at the 
385.23  preceding annual meeting, upon ten days' posted.  The clerk 
385.24  shall give notice given by the clerk, and of the meeting, 
385.25  specifying the matters to come before such meeting; but.  
385.26  Failure of the clerk to give such notice, or to specify the 
385.27  business to be transacted thereat, shall not affect the validity 
385.28  of any business, except the raising of money to build or 
385.29  purchase a school house, the authorizing of an issue of bonds, 
385.30  the fixing of a school house site, or the organization as an 
385.31  independent district.  At the annual meeting in a common 
385.32  district five legal voters shall constitute a quorum.  The chair 
385.33  and clerk of the board shall officiate in their respective 
385.34  capacities at all meetings of the electors of the district.  In 
385.35  the event of the absence of the chair or clerk, the voters shall 
385.36  elect a chair or clerk pro tem.  The voters shall have the power 
386.1   in an annual meeting to repeal and modify their proceedings.  
386.2   The polls at all meetings shall be open at least one hour. 
386.3      Subd. 2.  [ELECTIONS.] The annual meeting shall must have 
386.4   power to elect, by ballot, officers of the district.  In all 
386.5   elections or vote by ballot, the clerk shall record the names of 
386.6   all voters participating therein and the chair shall appoint two 
386.7   electors who.  The electors, with the assistance of the clerk, 
386.8   shall supervise the balloting and canvass the votes.  If any 
386.9   candidates receive an equal number of votes for an office, the 
386.10  board shall resolve the tie by lot.  
386.11     Subd. 3.  [CANDIDATES FOR OFFICE.] Any person desiring to 
386.12  be a candidate for a district office at the annual meeting of 
386.13  the district shall file with the clerk of the district an 
386.14  application to be placed on the ballot for such office, or.  Any 
386.15  five voters of the district may file such an application for or 
386.16  on behalf of any qualified voter in the district that they 
386.17  desire shall to be such a candidate.  The application 
386.18  Applications shall be filed not less than 12 days before the 
386.19  annual school district meeting.  The clerk of the district, in 
386.20  the notice of annual meeting, shall state the names of the 
386.21  candidates for whom applications have been filed, failure to do 
386.22  so shall not affect the validity of the election thereafter 
386.23  held.  At the annual meeting of common districts, nomination of 
386.24  candidates for offices may be made from the floor by any 
386.25  qualified voter.  
386.26     Subd. 4.  [BALLOTS.] The clerk shall prepare, at the 
386.27  expense of the district, necessary ballots for the election of 
386.28  officers placing thereon the names of the proposed candidates 
386.29  for such office with a blank space after such names, such.  The 
386.30  ballots shall be marked as official ballots, and the ballots so 
386.31  prepared by the clerk of the district shall be used to the 
386.32  exclusion of all other ballots at such annual meeting or 
386.33  election in the election of officers of the district. 
386.34     Subd. 5.  [TERM OF OFFICE.] At the first meeting of each 
386.35  district, the chair shall be elected to hold office until July 1 
386.36  following the next annual meeting.  The treasurer, until one 
387.1   year from such date, and the clerk until two years from such 
387.2   date.  
387.3      Subd. 6.  [ACCEPTANCE OF OFFICE.] A board member elected at 
387.4   an annual meeting upon notice from the clerk, shall, on or 
387.5   before the first Saturday in July, file with the clerk an 
387.6   acceptance of the office and an official oath.  Any person 
387.7   appointed by the board or elected at a special meeting to fill a 
387.8   vacancy shall file in writing an acceptance of the office and an 
387.9   official oath within ten days after the notice of such 
387.10  appointment or election by the clerk.  A person who fails to 
387.11  qualify prior to the time specified shall be deemed to have 
387.12  refused to serve, but such filing, if made at any time before 
387.13  action to fill the vacancy has been taken, shall be sufficient.  
387.14     Subd. 7.  [SPECIAL MEETING.] Upon the filing of a petition 
387.15  therefor, executed by five eligible voters, as defined in 
387.16  Minnesota election law, of the common district, specifying the 
387.17  business to be acted upon, or upon the adoption of a proper 
387.18  resolution so specifying, signed by a majority of the members of 
387.19  the board, the clerk shall forthwith call a special meeting of 
387.20  the district upon.  The clerk shall give ten days' posted notice 
387.21  and one week's published notice if there be a newspaper printed 
387.22  in the district and specify in the notice the business named in 
387.23  the request or resolution and the time and place of the 
387.24  meeting.  If there be is no clerk in the district or if the 
387.25  clerk fails for three days after receiving a request or 
387.26  resolution to give notice of a meeting, it may be called by like 
387.27  notice by five eligible voters, as defined in Minnesota election 
387.28  law, of the district.  No business except that named in the 
387.29  notice shall be transacted at the meeting.  If there are not 
387.30  five eligible voters, as defined in Minnesota election law, or 
387.31  if there is not a board therein, the county auditor may call a 
387.32  special meeting by giving notice thereof as provided in this 
387.33  section.  The voters at a special meeting have power to repeal 
387.34  or modify their proceedings. 
387.35     Sec. 2.  Minnesota Statutes 1996, section 123.12, is 
387.36  amended to read: 
388.1      123.12 [BOARDS OF COMMON SCHOOL DISTRICTS.] 
388.2      Subdivision 1.  [SCHOOL BOARD.] The care, management and 
388.3   control of a common district is vested in a board of three 
388.4   members to be known as the school board.  The term of office of 
388.5   a member shall be three years, and until a successor qualifies. 
388.6   The board of each common district shall must consist of a chair, 
388.7   a treasurer, and a clerk.  The board may by resolution establish 
388.8   a time and place for regular meeting and no notice of such 
388.9   meeting need be sent to any members of the board. 
388.10     Subd. 2.  [FINANCES.] The board shall must submit to the 
388.11  annual meeting an estimate of the expenses of the district for 
388.12  the coming year for a school term as determined by the board and 
388.13  for such other specified purposes as the board may deem proper.  
388.14  If such the annual meeting shall fail fails to vote a sufficient 
388.15  tax to maintain the district for such time, the board shall must 
388.16  levy such tax pursuant to and within the limitations of sections 
388.17  124.226, 124.2716, 124.91, 124.912, 124.914, 124.916, and 
388.18  124.918; but no board shall expend any money or incur any 
388.19  liability for any purpose beyond the sum appropriated by vote of 
388.20  the district for such purpose, or levied by the board pursuant 
388.21  to this subdivision, or on hand and applicable thereto. 
388.22     Subd. 9.  [SCHOOL VISITS.] The board shall must visit each 
388.23  school at least once every three months. 
388.24     Subd. 14.  [OFFICIAL NEWSPAPER.] At its first meeting 
388.25  following July 1 each year, the board shall must designate, by 
388.26  resolution, as the official newspaper of the district, some 
388.27  legal newspaper of general circulation within the district, and 
388.28  contract with such newspaper for its publications.  If there is 
388.29  more than one such newspaper, the board shall let such must 
388.30  enter a contract to with the lowest responsible bidder at the 
388.31  earliest practicable date.  All notices and proceedings required 
388.32  by law to be published by the board shall must be published in 
388.33  the official newspaper so designated.  The fees for such 
388.34  publication shall must not exceed the fees for publication of 
388.35  legal notices as prescribed by Minnesota Statutes. 
388.36     Sec. 3.  Minnesota Statutes 1996, section 123.13, is 
389.1   amended to read: 
389.2      123.13 [OFFICERS OF COMMON SCHOOL DISTRICTS.] 
389.3      Subd. 2.  [TREASURER.] The treasurer shall receive and be 
389.4   responsible for all money in the district and disburse the same 
389.5   on orders signed by the clerk and countersigned by the chair or 
389.6   other vouchers authorized by law; provided, that,.  In the event 
389.7   that the chair has been continuously absent from the district 
389.8   for a period of 30 days or more, the treasurer may pay orders 
389.9   without the signature of the chair.  Each order shall must state 
389.10  the fund on which it is drawn, the name of the payee, and the 
389.11  nature of the claim for which such order is issued and shall 
389.12  must be so drawn that when signed by the treasurer in an 
389.13  appropriate place, it becomes a check on the school district 
389.14  depository.  The treasurer shall keep an account of each fund, 
389.15  and of all receipts and disbursements showing the sources of all 
389.16  receipts and the nature and purpose of disbursements.  The 
389.17  treasurer shall deposit the funds of the district in the 
389.18  official depository in accordance with the provisions of law. 
389.19     Sec. 4.  Minnesota Statutes 1996, section 123.15, is 
389.20  amended to read: 
389.21     123.15 [SCHOOLHOUSES AND SITES, COMMON SCHOOL DISTRICTS.] 
389.22     Subdivision 1.  [ACQUISITION OF SITES.] When authorized by 
389.23  the voters at a regular meeting or at a special meeting called 
389.24  for that purpose, the board may acquire necessary sites for 
389.25  school houses, or enlargements or additions to existing school 
389.26  house sites, by lease, purchase, or condemnation under the right 
389.27  of eminent domain; lease, erect or purchase garages for 
389.28  district-owned school buses; and sell or exchange school houses 
389.29  or sites and execute deeds of conveyances thereof. It may 
389.30  acquire by lease, purchase, or condemnation under eminent domain 
389.31  suitable tracts of land either within in or without outside of 
389.32  the district for the purpose of instruction, experimentation, 
389.33  and demonstration in agriculture.  In any city, a school site, 
389.34  when practicable, shall must contain at least one block, and, 
389.35  if. Outside of any city, a school site must contain at least two 
389.36  acres; and when.  If any school house site shall 
390.1   contain contains less than such the required amount the board 
390.2   may, without a vote of the electors, acquire other land adjacent 
390.3   to or near such site to make, with such site, all or part 
390.4   of such the required amount.  When If property is taken by 
390.5   eminent domain by authority of this subdivision, when needed by 
390.6   the district for such purpose, the fact that the property so 
390.7   needed has been was acquired by the owner under the power of 
390.8   eminent domain, or is already devoted to public use, shall not 
390.9   prevent its acquisition by the district. 
390.10     Subd. 2.  [SITE DESIGNATION.] The annual meeting or 
390.11  election shall have power to designate a site for a school house 
390.12  and provide for building or otherwise placing a school house 
390.13  thereon, when proper notice has been given; but.  A site on 
390.14  which a with an existing school house stands or where a school 
390.15  house is begun being built shall not be changed except by vote 
390.16  therefor, of three-fifths of the voters of the district voting 
390.17  on the question. 
390.18     Subd. 3.  [TEACHER DWELLING.] When authorized by a 
390.19  two-thirds majority of all the electors voting at an annual or 
390.20  special meeting, the board may erect, purchase, or acquire a 
390.21  dwelling house for the use of its teachers; provided that.  The 
390.22  proposition shall be submitted only at a meeting or election,.  
390.23  The notice of which stated the meeting shall state that such 
390.24  proposition would be considered or submitted thereat. 
390.25     Sec. 5.  Minnesota Statutes 1996, section 123.33, is 
390.26  amended to read: 
390.27     123.33 [BOARDS OF INDEPENDENT SCHOOL DISTRICTS.] 
390.28     Subdivision 1.  [SCHOOL BOARD.] The care, management, and 
390.29  control of independent districts shall be is vested in a board 
390.30  of directors, to be known as the school board.  The term of 
390.31  office of a member shall be four years and until a successor 
390.32  qualifies.  The membership of the school board shall consist of 
390.33  six elected directors together with such ex officio member as 
390.34  may be provided by law.  But The board may submit to the 
390.35  electors at any school election the question whether the board 
390.36  shall consist of seven members and.  If a majority of those 
391.1   voting on the proposition favor a seven-member board, a seventh 
391.2   member shall be elected at the next election of directors for a 
391.3   four-year term and thereafter the board shall consist of seven 
391.4   members. 
391.5      Those districts with a seven-member board may submit to the 
391.6   electors at any school election at least 150 days before the 
391.7   next election of three members of the board the question whether 
391.8   the board shall consist of six members.  If a majority of those 
391.9   voting on the proposition favor a six-member board instead of a 
391.10  seven-member board, two members instead of three members shall 
391.11  be elected at the next election of the board of directors and 
391.12  thereafter the board shall consist of six members. 
391.13     Subd. 2.  [SCHOOL BOARD VACANCY.] A vacancy in any board 
391.14  occurs when a member (a) dies, or (b) resigns, or (c) ceases to 
391.15  be a resident of the district, or (d) is unable to serve on such 
391.16  board and attend its meetings for not less than 90 days because 
391.17  of illness or prolonged absence from the district. 
391.18     Subd. 2a.  [SCHOOL BOARD MEMBER TRAINING.] A member 
391.19  must shall receive training in school finance and management 
391.20  developed in consultation with the Minnesota school boards 
391.21  association and consistent with section 121.919.  The school 
391.22  boards association shall must make available to each newly 
391.23  elected school board member training in school finance and 
391.24  management consistent with section 121.919 within 180 days of 
391.25  that member taking office.  The program shall be developed in 
391.26  consultation with the department of children, families, and 
391.27  learning and appropriate representatives of higher education. 
391.28     Subd. 3.  [ILL OR ABSENT MEMBER.] A vacancy caused by a 
391.29  member being unable to serve on such board and attend its 
391.30  meetings for not less than 90 days because of illness or 
391.31  prolonged absence from the district, may, after the board has by 
391.32  resolution declared such vacancy to exist, be filled by the 
391.33  board at any regular or special meeting thereof for the 
391.34  remainder of the unexpired term, or until such ill or absent 
391.35  member is again able to resume duties as a member of such board, 
391.36  whichever date is earliest.  When such the ill or absent member 
392.1   is again able to resume duties as a member of the board, the 
392.2   board shall must by resolution so determine and declare such 
392.3   person to be again a member of the board, and the member 
392.4   appointed by the board to be no longer a member thereof. 
392.5      Subd. 4.  [VACANCY; APPOINTMENT.] Any other vacancy in a 
392.6   board shall must be filled by board appointment at a regular or 
392.7   special meeting.  The appointment shall be evidenced by a 
392.8   resolution entered in the minutes and shall continue until an 
392.9   election is held under this subdivision.  All elections to fill 
392.10  vacancies shall be for the unexpired term.  If the vacancy 
392.11  occurs before the first day to file affidavits of candidacy for 
392.12  the next school district general election and more than two 
392.13  years remain in the unexpired term, a special election shall be 
392.14  held in conjunction with the school district general election.  
392.15  The appointed person shall serve until the qualification of the 
392.16  successor elected to fill the unexpired part of the term at that 
392.17  special election.  If the vacancy occurs on or after the first 
392.18  day to file affidavits of candidacy for the school district 
392.19  general election, or when less than two years remain in the 
392.20  unexpired term, there shall be no special election to fill the 
392.21  vacancy and the appointed person shall serve the remainder of 
392.22  the unexpired term and until a successor is elected and 
392.23  qualifies at the school district election. 
392.24     Subd. 5.  [MEETINGS.] A majority of the voting members of 
392.25  the board shall constitute a quorum.  No contract shall be made 
392.26  or authorized, except at a regular meeting of the board or at a 
392.27  special meeting at which all members are present or of which all 
392.28  members have had notice.  Special meetings may be called by the 
392.29  chair or clerk or any three members upon notice mailed to each 
392.30  member at least three days prior thereto. 
392.31     Subd. 6.  [RULES.] The board shall make, and when deemed 
392.32  advisable, change or repeal rules relating to the organization 
392.33  and management of the board and the duties of its officers. 
392.34     Subd. 7.  [DUTIES.] The board shall must superintend and 
392.35  manage the schools of the district; adopt rules for their 
392.36  organization, government, and instruction; keep registers; and 
393.1   prescribe textbooks and courses of study.  The board may enter 
393.2   into an agreement with a post-secondary institution for 
393.3   secondary or post-secondary nonsectarian courses to be taught at 
393.4   a secondary school, nonsectarian post-secondary institution, or 
393.5   another location. 
393.6      Subd. 8.  [BOARD MEMBER REMOVAL.] The board may remove, for 
393.7   proper cause, any member or officer of the board and fill the 
393.8   vacancy; but such removal must be by a concurrent vote of at 
393.9   least four members, at a meeting of whose time, place, and 
393.10  object the charged member has been duly notified, with the 
393.11  reasons for such proposed removal and after an opportunity to be 
393.12  heard in defense against the removal. 
393.13     Subd. 11.  [PUBLISHING OF PROCEEDINGS.] The board shall 
393.14  must cause its official proceedings to be published once in the 
393.15  official newspaper of the district.  Such publication shall be 
393.16  made within 30 days of the meeting at which such proceedings 
393.17  occurred.  If the board determines that publication of a summary 
393.18  of the proceedings would adequately inform the public of the 
393.19  substance of the proceedings, the board may direct that only a 
393.20  summary be published, conforming to the requirements of section 
393.21  331A.01, subdivision 10.  
393.22     Subd. 11a.  [MAILING OF PROCEEDINGS.] If a school board of 
393.23  a district that has no newspaper with its known office of issue 
393.24  or a secondary office located within the boundaries of the 
393.25  district and no newspaper that is distributed to more than 
393.26  one-third of the residences in the district determines that 
393.27  mailing a summary of its proceedings would be more economical 
393.28  than publication of the proceedings and that it would adequately 
393.29  inform the public, it may mail a summary of its proceedings to 
393.30  each residence in the district that can be identified as a 
393.31  homestead from the property tax records and to each other 
393.32  residence in the district that the board can identify.  The 
393.33  county shall must make the property tax records available to the 
393.34  board for this purpose.  The board shall must keep a copy of the 
393.35  summary of the proceedings as part of its records.  The decision 
393.36  of a school board to mail summaries, rather than publish the 
394.1   proceedings under this subdivision shall be presumed valid, 
394.2   subject to challenge by a court action. 
394.3      Subd. 12.  [COMPENSATION.] The clerk, treasurer, and 
394.4   superintendent of any district shall receive such compensation 
394.5   as may be fixed by the board.  Unless otherwise provided by law, 
394.6   the other members of the board shall also receive such 
394.7   compensation as may be fixed by the board.  All members of the 
394.8   board may receive reimbursement for transportation at the rate 
394.9   provided for in section 471.665. 
394.10     Subd. 17.  [BUDGETS.] By October 1, every board must 
394.11  publish revenue and expenditure budgets for the current year and 
394.12  the actual revenues, expenditures, fund balances for the prior 
394.13  year and projected fund balances for the current year in a form 
394.14  prescribed by the commissioner.  The forms prescribed must be 
394.15  designed so that year to year comparisons of revenue, 
394.16  expenditures and fund balances can be made.  These budgets, 
394.17  reports of revenue, expenditures and fund balances must be 
394.18  published in a qualified newspaper of general circulation in the 
394.19  district. 
394.20     Subd. 18.  [DEBT SUMMARY.] The board must also publish at 
394.21  the same time a summary of bonds outstanding, paid, and sold; a 
394.22  summary of orders not paid for want of funds; certificates of 
394.23  indebtedness for the year ending June 30; the statutory 
394.24  operating debt of the district as defined and certified pursuant 
394.25  to section 121.914; and the balance amount of the reserved fund 
394.26  balance reserve account for purposes of statutory operating debt 
394.27  reduction established pursuant to sections 124.226, 124.2716, 
394.28  124.91, 124.912, 124.914, 124.916, and 124.918.  
394.29     Subd. 19.  [BUDGET INSPECTION.] A statement must be 
394.30  included in the publication that the complete budget in detail 
394.31  may be inspected by any resident of the district upon request to 
394.32  the chief school administrator. 
394.33     Subd. 20.  [COST PER PUPIL.] The board must publish at the 
394.34  same time the average cost per pupil in average daily membership 
394.35  educated in that district in the preceding year.  This 
394.36  computation must be made exclusive of debt service or capital 
395.1   outlay costs. 
395.2      Sec. 6.  Minnesota Statutes 1996, section 123.335, is 
395.3   amended to read: 
395.4      123.335 [IMPREST CASH FUNDS.] 
395.5      Subdivision 1.  [IMPREST FUND.] The board may establish one 
395.6   or more imprest funds for the payment in cash of any proper 
395.7   claim against the district which it is impractical to pay in any 
395.8   other manner, except that no claim for salary or personal 
395.9   expenses of a district officer or employee shall be paid from 
395.10  such funds.  The board shall must appoint a custodian of each 
395.11  such fund who shall be responsible for its safekeeping and 
395.12  disbursement according to law.  Money for the operation of such 
395.13  fund shall be secured by a transfer from the general fund.  A 
395.14  claim itemizing all the various demands for which disbursements 
395.15  have been made from the fund shall must be presented to the 
395.16  board at the next board meeting after the disbursements have 
395.17  been made.  The board shall must act upon it as in the case of 
395.18  other claims and an order shall be issued to the custodian for 
395.19  the amount allowed.  The custodian shall use the proceeds of the 
395.20  order to replenish the fund; and.  If the board fails to approve 
395.21  the claim in full for any sufficient reason, the custodian shall 
395.22  be personally responsible for the difference. 
395.23     Subd. 2.  [ADVANCES.] The board may authorize an imprest 
395.24  fund for the purpose of advancing money to officers or employees 
395.25  to pay the actual and necessary expenses of such officer or 
395.26  employee in attending meetings outside of the district.  The 
395.27  board shall must appoint a custodian of such fund who shall be 
395.28  responsible for its safekeeping and disbursement according to 
395.29  law.  At the first regular meeting of the board after such 
395.30  meeting, the custodian shall submit an itemized claim for the 
395.31  actual and necessary expenses incurred and paid.  The 
395.32  board shall must act upon it as in the case of other claims and 
395.33  an order shall be issued to the custodian for the amount 
395.34  allowed.  The custodian shall use the proceeds of the order to 
395.35  repay the amount advanced from the fund and make final 
395.36  settlement with the officer or employee.  As an alternative the 
396.1   board may authorize travel advances if control is maintained by 
396.2   use of a travel advance account, the balance of which is 
396.3   supported by names of employees to whom money has been advanced. 
396.4      Sec. 7.  Minnesota Statutes 1996, section 123.34, is 
396.5   amended to read: 
396.6      123.34 [OFFICERS OF INDEPENDENT SCHOOL DISTRICTS.] 
396.7      Subdivision 1.  [OFFICER SELECTION.] Within ten days after 
396.8   the election of the first board in independent districts and 
396.9   annually thereafter on July 1, or as soon thereafter as 
396.10  practicable, the board shall must meet and organize by selecting 
396.11  a chair, clerk, and a treasurer, who shall hold their offices 
396.12  for one year and until their successors are selected and 
396.13  qualify. The persons who perform the duties of the clerk and 
396.14  treasurer need not be members of the board and the board by 
396.15  resolution may combine the duties of the offices of clerk and 
396.16  treasurer in a single person in the office of business affairs.  
396.17  They may appoint a superintendent who shall be ex officio a 
396.18  member of the board, but not entitled to vote therein.  In 
396.19  districts in which board members are elected at the general 
396.20  election in November, the annual meeting of the board shall must 
396.21  be held on the first Monday of January or as soon thereafter as 
396.22  practicable. 
396.23     Subd. 2.  [CHAIR.] The chair when present shall preside at 
396.24  all meetings of the board, countersign all orders upon the 
396.25  treasurer for claims allowed by the board, represent the 
396.26  district in all actions and perform all the duties usually 
396.27  incumbent on such officer.  In case of absence, inability, or 
396.28  refusal of the clerk to draw orders for the payment of money 
396.29  authorized by a vote of the majority of the board to be paid, 
396.30  the orders may be drawn by the chair, and paid by the 
396.31  treasurer,.  A statement thereof of the orders drawn, with a 
396.32  copy of such orders, being shall be delivered to the clerk by 
396.33  the treasurer, or the office of the clerk may be declared vacant 
396.34  by the chair and treasurer and filled by appointment. 
396.35     Subd. 3.  [OFFICIAL DEPOSITORY.] The treasurer shall 
396.36  deposit the funds of the district in the official depository. 
397.1      Subd. 4.  [TREASURER REPORTS.] The treasurer shall make all 
397.2   reports which may be called for by the board and perform all 
397.3   duties usually incumbent on such officer. 
397.4      Subd. 5.  [INSUFFICIENT FUNDS.] In the event that valid 
397.5   orders presented to the treasurer for payment, and there are 
397.6   insufficient funds on hand to pay them, the treasurer shall 
397.7   receive, endorse and process them in accordance with section 
397.8   124.06. 
397.9      Subd. 7.  [PERFORMANCE BOND.] When the duty devolves upon 
397.10  any person employed by a board to receive money and pay it over 
397.11  to the treasurer of the district, the district shall must 
397.12  require a bond from such person and pay all premiums therefor.  
397.13  The amount of each bond shall be fixed by the board and the bond 
397.14  approved by it.  The bond shall must be not less than $500 
397.15  conditioned for the faithful performance of the duty and shall 
397.16  be filed with the clerk.  In lieu of individual bonds, the 
397.17  district may prescribe and keep in effect a schedule or position 
397.18  insurance policy or blanket bond in such aggregate amount as the 
397.19  district determines, insuring the fidelity of such persons in 
397.20  the amount of not less than $500 for each such person. 
397.21     Subd. 8.  [CLERK RECORDS.] The clerk shall keep a record of 
397.22  all meetings of the district and the board in books provided by 
397.23  the district for that purpose.  The clerk shall, within three 
397.24  days after an election, notify all persons elected of their 
397.25  election.  On or before By August 15 of each year the clerk 
397.26  shall file with the board a report of the revenues, expenditures 
397.27  and balances in each fund for the preceding fiscal year.  The 
397.28  report together with vouchers and supporting documents shall 
397.29  subsequently be examined by a public accountant or the state 
397.30  auditor, either of whom shall be paid by the school district, as 
397.31  provided in section 121.908, subdivision 3.  The board shall by 
397.32  resolution approve the report or require a further or amended 
397.33  report.  On or before By August 15 of each year, the clerk shall 
397.34  make and transmit to the commissioner certified reports, showing:
397.35     (1) The condition and value of school property; 
397.36     (2) The revenues and expenditures in detail, and such other 
398.1   financial information required by law, rule, or as may be called 
398.2   for by the commissioner; 
398.3      (3) The length of school term and the enrollment and 
398.4   attendance by grades; and 
398.5      (4) Such other items of information as may be called for by 
398.6   the commissioner. 
398.7      The clerk shall enter in the clerk's record book copies of 
398.8   all reports and of the teachers' term reports, as they appear in 
398.9   the registers, and of the proceedings of any meeting as 
398.10  furnished by the clerk pro tem, and keep an itemized account of 
398.11  all the expenses of the district.  The clerk shall furnish to 
398.12  the auditor of the proper county, on or before by October 10 of 
398.13  each year, an attested copy of the clerk's record, showing the 
398.14  amount of money voted by the district or the board for school 
398.15  purposes; draw and sign all orders upon the treasurer for the 
398.16  payment of money for bills allowed by the board for salaries of 
398.17  officers and for teachers' wages and all claims, to be 
398.18  countersigned by the chair.  Such orders shall must state the 
398.19  consideration, payee, and the fund and the clerk shall take a 
398.20  receipt therefor.  Teachers' wages shall have preference in the 
398.21  order in which they become due, and no money applicable for 
398.22  teachers' wages shall be used for any other purpose, nor shall 
398.23  teachers' wages be paid from any fund except that raised or 
398.24  apportioned for that purpose. 
398.25     Subd. 9.  [SUPERINTENDENT.] All districts maintaining a 
398.26  classified secondary school shall must employ a superintendent 
398.27  who shall be an ex officio nonvoting member of the school board. 
398.28  The authority for selection and employment of a superintendent 
398.29  shall must be vested in the school board in all cases.  An 
398.30  individual employed by a school board as a superintendent shall 
398.31  have an initial employment contract for a period of time no 
398.32  longer than three years from the date of employment.  Any 
398.33  subsequent employment contract must not exceed a period of three 
398.34  years.  A school board, at its discretion, may or may not renew 
398.35  an employment contract.  A school board shall must not, by 
398.36  action or inaction, extend the duration of an existing 
399.1   employment contract.  Beginning 365 days prior to the expiration 
399.2   date of an existing employment contract, a school board may 
399.3   negotiate and enter into a subsequent employment contract to 
399.4   take effect upon the expiration of the existing contract.  A 
399.5   subsequent contract shall must be contingent upon the employee 
399.6   completing the terms of an existing contract.  If a contract 
399.7   between a school board and a superintendent is terminated prior 
399.8   to the date specified in the contract, the school board may not 
399.9   enter into another superintendent contract with that same 
399.10  individual that has a term that extends beyond the date 
399.11  specified in the terminated contract.  A school board may 
399.12  terminate a superintendent during the term of an employment 
399.13  contract for any of the grounds specified in section 125.12, 
399.14  subdivision 6 or 8.  A superintendent shall not rely upon an 
399.15  employment contract with a school board to assert any other 
399.16  continuing contract rights in the position of superintendent 
399.17  under section 125.12.  Notwithstanding the provisions of 
399.18  sections 122.532, 122.541, 125.12, subdivision 6a or 6b, or any 
399.19  other law to the contrary, no individual shall have a right to 
399.20  employment as a superintendent based on order of employment in 
399.21  any district.  If two or more school districts enter into an 
399.22  agreement for the purchase or sharing of the services of a 
399.23  superintendent, the contracting districts have the absolute 
399.24  right to select one of the individuals employed to serve as 
399.25  superintendent in one of the contracting districts and no 
399.26  individual has a right to employment as the superintendent to 
399.27  provide all or part of the services based on order of employment 
399.28  in a contracting district. The superintendent of a district 
399.29  shall perform the following:  
399.30     (1) visit and supervise the schools in the district, report 
399.31  and make recommendations about their condition when advisable or 
399.32  on request by the board; 
399.33     (2) recommend to the board employment and dismissal of 
399.34  teachers; 
399.35     (3) superintend school grading practices and examinations 
399.36  for promotions; 
400.1      (4) make reports required by the commissioner of children, 
400.2   families, and learning; and 
400.3      (5) perform other duties prescribed by the board. 
400.4      Subd. 9a.  [DISCLOSE PAST BUYOUTS OR CONTRACT IS VOID.] (a) 
400.5   For the purposes of paragraph (b), a "buyout agreement" is any 
400.6   agreement under which a person employed as a superintendent left 
400.7   the position before the term of the contract was over and 
400.8   received a sum of money, something else of value, or the right 
400.9   to something of value for some purpose other than performing the 
400.10  services of a superintendent. 
400.11     (b) Before a person may enter into a superintendent's 
400.12  contract with a school board, the candidate shall disclose in 
400.13  writing the existence and terms of any previous buyout 
400.14  agreement, including amounts and the purpose for the payments, 
400.15  relating to a superintendent's contract with another school 
400.16  board.  A disclosure made under this paragraph is public data. 
400.17     (c) The superintendent's contract of a person who fails to 
400.18  make a timely disclosure under paragraph (b) is void. 
400.19     Subd. 10.  [PRINCIPALS.] Each public school building, as 
400.20  defined by section 120.05, subdivision 2, clauses (1), (2), and 
400.21  (3), in an independent school district may be under the 
400.22  supervision of a principal who is assigned to that 
400.23  responsibility by the board of education in that school district 
400.24  upon the recommendation of the superintendent of schools of that 
400.25  school district.  If pupils in kindergarten through grade 12 
400.26  attend school in one building, one principal may supervise the 
400.27  building. 
400.28     Each principal assigned the responsibility for the 
400.29  supervision of a school building shall hold a valid license in 
400.30  the assigned position of supervision and administration as 
400.31  established by the rules of the state board of education. 
400.32     The principal shall provide administrative, supervisory, 
400.33  and instructional leadership services, under the supervision of 
400.34  the superintendent of schools of the school district and in 
400.35  accordance with the policies, rules, and regulations of the 
400.36  board of education, for the planning, management, operation, and 
401.1   evaluation of the education program of the building or buildings 
401.2   to which the principal is assigned. 
401.3      Sec. 8.  Minnesota Statutes 1996, section 123.35, 
401.4   subdivision 1, is amended to read: 
401.5      Subdivision 1.  [BOARD AUTHORITY.] The board shall must 
401.6   have the general charge of the business of the district, the 
401.7   school houses, and of the interests of the schools thereof.  The 
401.8   board's authority to conduct the business of the district 
401.9   includes implied powers in addition to any specific powers 
401.10  granted by the legislature. 
401.11     Sec. 9.  Minnesota Statutes 1996, section 123.35, 
401.12  subdivision 2, is amended to read: 
401.13     Subd. 2.  [FACILITIES FOR SCHOOL-AGE CHILDREN.] It shall be 
401.14  is the duty and the function of the district to furnish school 
401.15  facilities to every child of school age residing in any part of 
401.16  the district.  The board may establish and organize and alter 
401.17  and discontinue such grades or schools as it may deem advisable 
401.18  and assign to each school and grade a proper number of 
401.19  pupils.  The board shall provide free textbooks for the pupils 
401.20  of the district. 
401.21     Sec. 10.  Minnesota Statutes 1996, section 123.35, 
401.22  subdivision 3, is amended to read: 
401.23     Subd. 3.  [BONDS.] The voters of a district may authorize 
401.24  the issuance of bonds of the district in accordance with the 
401.25  provisions of chapter 475. 
401.26     Sec. 11.  Minnesota Statutes 1996, section 123.35, 
401.27  subdivision 4, is amended to read: 
401.28     Subd. 4.  [LEVY.] The board shall must provide by levy of 
401.29  tax necessary funds for the conduct of schools, the payment of 
401.30  indebtedness, and all proper expenses of the district. 
401.31     Sec. 12.  Minnesota Statutes 1996, section 123.35, 
401.32  subdivision 6, is amended to read: 
401.33     Subd. 6.  [HIRING EMPLOYEES; CONTRACT FOR SERVICES.] The 
401.34  board may employ and discharge necessary employees and may 
401.35  contract for other services. 
401.36     Sec. 13.  Minnesota Statutes 1996, section 123.35, 
402.1   subdivision 7, is amended to read: 
402.2      Subd. 7.  [LIBRARY FACILITIES.] The board may provide 
402.3   library facilities as part of its school equipment according to 
402.4   the standards of the state board of education. 
402.5      Sec. 14.  Minnesota Statutes 1996, section 123.35, 
402.6   subdivision 8c, is amended to read: 
402.7      Subd. 8c.  [PUPIL COUNT.] A district may not count a person 
402.8   enrolled pursuant to subdivision 8a as a pupil unit or a pupil 
402.9   in average daily membership for the purpose of receiving any 
402.10  state aid.  
402.11     Sec. 15.  Minnesota Statutes 1996, section 123.35, 
402.12  subdivision 9b, is amended to read: 
402.13     Subd. 9b.  [SERVICES FOR INDIAN STUDENTS.] School districts 
402.14  may enter into agreements with Indian tribal governments for 
402.15  purposes of providing educational services for students.  Such 
402.16  agreements may allow for the use of any resources available to 
402.17  either party and must give students the option to enroll in 
402.18  the school district at their election. 
402.19     Sec. 16.  Minnesota Statutes 1996, section 123.35, 
402.20  subdivision 11, is amended to read: 
402.21     Subd. 11.  [SCHOOL LUNCHES.] The board may furnish school 
402.22  lunches for pupils and teachers on such terms as it determines. 
402.23     Sec. 17.  Minnesota Statutes 1996, section 123.35, 
402.24  subdivision 12, is amended to read: 
402.25     Subd. 12.  [ANNUITY CONTRACT; PAYROLL ALLOCATION.] At the 
402.26  request of an employee and as part of the employee's 
402.27  compensation arrangement, the board may purchase an individual 
402.28  annuity contract for an employee for retirement or other 
402.29  purposes and may make payroll allocations in accordance with 
402.30  such arrangement for the purpose of paying the entire premium 
402.31  due and to become due under such contract.  The allocation shall 
402.32  must be made in a manner which will qualify the annuity 
402.33  premiums, (or a portion thereof), for the benefit afforded under 
402.34  section 403(b) of the current Federal Internal Revenue Code or 
402.35  any equivalent provision of subsequent federal income tax law.  
402.36  The employee shall own such contract and the employee's rights 
403.1   thereunder under the contract shall be nonforfeitable except for 
403.2   failure to pay premiums.  Section 125.12 shall not be applicable 
403.3   hereto and the board shall have no liability thereunder because 
403.4   of its purchase of any individual annuity contracts.  This 
403.5   statute shall be applied in a nondiscriminatory manner to 
403.6   employees of the school district. 
403.7      Sec. 18.  Minnesota Statutes 1996, section 123.35, is 
403.8   amended by adding a subdivision to read: 
403.9      Subd. 12a.  [HEALTH INSURANCE PREMIUMS.] The board of any 
403.10  independent school district may expend funds to pay premiums on 
403.11  hospitalization and major medical insurance coverage for 
403.12  officers and employees who retire prior to age 65.  
403.13     Sec. 19.  Minnesota Statutes 1996, section 123.35, 
403.14  subdivision 15, is amended to read: 
403.15     Subd. 15.  [PAYMENT OF CLAIMS.] When payment of a claim 
403.16  cannot be deferred until the next board meeting without loss to 
403.17  the district of a discount privilege, or when payment of a claim 
403.18  cannot be deferred until the next board meeting because of 
403.19  contract terms, purchase order terms, or a vendor's standard 
403.20  terms which are part of the contract, the claim may be paid 
403.21  prior to board approval, providing that the board: 
403.22     (a) Has delegated authority to the clerk or a designated 
403.23  business administrator to make a payment prior to board approval 
403.24  and 
403.25     (b) Requires that payment made prior to board approval be 
403.26  acted upon at the next board meeting. 
403.27     Payment prior to board approval shall must not affect the 
403.28  right of the district or a taxpayer to challenge the validity of 
403.29  a claim. 
403.30     Sec. 20.  Minnesota Statutes 1996, section 123.35, 
403.31  subdivision 20, is amended to read: 
403.32     Subd. 20.  [LEGAL COUNSEL; REIMBURSEMENT.] If reimbursement 
403.33  is requested by a school district employee, the board may, after 
403.34  consulting with its legal counsel, reimburse the employee for 
403.35  any costs and reasonable attorney fees incurred by the person to 
403.36  defend criminal charges brought against the person arising out 
404.1   of the performance of duties for the school district.  A board 
404.2   member who is a witness or an alleged victim in the case may not 
404.3   vote on the reimbursement.  If a quorum of the board is 
404.4   disqualified from voting on the reimbursement, the reimbursement 
404.5   shall must be approved by a judge of the district court. 
404.6      Sec. 21.  Minnesota Statutes 1996, section 123.35, is 
404.7   amended by adding a subdivision to read: 
404.8      Subd. 22.  [PAYMENT OF JUST CLAIMS.] The board must provide 
404.9   for the payment of all just claims against the district in cases 
404.10  provided by law. 
404.11     Sec. 22.  Minnesota Statutes 1996, section 123.35, is 
404.12  amended by adding a subdivision to read: 
404.13     Subd. 23.  [PROSECUTE AND DEFEND ACTIONS.] In all proper 
404.14  cases, the board must prosecute and defend actions by or against 
404.15  the district. 
404.16     Sec. 23.  Minnesota Statutes 1996, section 123.35, is 
404.17  amended by adding a subdivision to read: 
404.18     Subd. 24.  [RECEIPT OF DONATIONS.] The board may receive, 
404.19  for the benefit of the district, bequests, donations, or gifts 
404.20  for any proper purpose and apply the same to the purpose 
404.21  designated.  In that behalf, the board may act as trustee of any 
404.22  trust created for the benefit of the district, or for the 
404.23  benefit of pupils thereof, including trusts created to provide 
404.24  pupils of the district with advanced education after completion 
404.25  of high school, in the advancement of education. 
404.26     Sec. 24.  Minnesota Statutes 1996, section 123.35, is 
404.27  amended by adding a subdivision to read: 
404.28     Subd. 25.  [REMOVAL OF UNAUTHORIZED VEHICLES.] The board 
404.29  may authorize a representative to move unauthorized vehicles 
404.30  parked on school district property, or require the driver or 
404.31  other person in charge of the vehicle to move the same off 
404.32  district property. 
404.33     When such representative finds such a vehicle unattended 
404.34  upon district premises, such representative is hereby authorized 
404.35  to provide for the removal of such vehicle and remove the same 
404.36  to the nearest convenient garage or other place of safety off of 
405.1   district property.  Such vehicle shall be moved at the expense 
405.2   of the owner or operator. 
405.3      Sec. 25.  Minnesota Statutes 1996, section 123.35, is 
405.4   amended by adding a subdivision to read: 
405.5      Subd 26.  [LIABILITY INSURANCE; OFFICERS AND 
405.6   EMPLOYEES.] The governing body of any independent school 
405.7   district may procure insurance against liability of the district 
405.8   or of its officers and employees for damages resulting from 
405.9   wrongful acts and omissions of the district and its officers and 
405.10  employees, whether the acts or omissions relate to governmental 
405.11  or proprietary functions of the district.  Insofar as this 
405.12  insurance relates to governmental functions of the district, the 
405.13  policy of insurance shall contain a provision requiring the 
405.14  insurance company to waive the defense of governmental immunity 
405.15  up to the limits of the policy unless the district consents to 
405.16  the assertion of that defense.  
405.17     Sec. 26.  Minnesota Statutes 1996, section 123.35, is 
405.18  amended by adding a subdivision to read: 
405.19     Subd. 27.  [SALE AT AUCTION.] Notwithstanding sections 
405.20  123.37, subdivision 1, 471.345 or any other law, the board of a 
405.21  school district or of a cooperative center for vocational 
405.22  education may, in lieu of advertising for bids, sell at public 
405.23  auction to the highest responsible bidder a building constructed 
405.24  or to be constructed by a secondary or post-secondary school 
405.25  student or class as a school assignment.  A board shall publish 
405.26  notice of a sale at least two weeks before the sale in the 
405.27  official newspaper of the district, or in the case of a 
405.28  cooperative center, in the official newspapers of each of the 
405.29  member districts, and may, at its discretion, publish additional 
405.30  notice in the official paper or elsewhere.  A building may be 
405.31  withdrawn from sale prior to the completion of the sale unless 
405.32  the auction has been announced to be without reserve.  If the 
405.33  sale is made at public auction, a duly licensed auctioneer must 
405.34  be retained to conduct the sale.  The auctioneer shall be paid 
405.35  from the proceeds of the sale or from any funds available to the 
405.36  board which are not otherwise restricted or encumbered. 
406.1      Sec. 27.  Minnesota Statutes 1996, section 123.35, is 
406.2   amended by adding a subdivision to read: 
406.3      Subd 28.  [SCHOOL SITE DECISION-MAKING AGREEMENT.] (a) A 
406.4   school board may enter into an agreement with a school site 
406.5   decision-making team concerning the governance, management, or 
406.6   control of any school in the district.  Upon a written request 
406.7   from a proposed school site decision-making team, an initial 
406.8   school site decision-making team shall be appointed by the 
406.9   school board.  The team may include the school principal, 
406.10  representatives of teachers in the school, representatives of 
406.11  other employees in the school, representatives of parents of 
406.12  pupils in the school, representatives of pupils in the school, 
406.13  representatives of other members in the community, or others 
406.14  determined appropriate by the board.  The school site 
406.15  decision-making team shall include the school principal or other 
406.16  person having general control and supervision of the school. 
406.17     (b) School site decision-making agreements must delegate 
406.18  powers and duties to site teams and involve staff members, 
406.19  students as appropriate, and parents in decision making. 
406.20     (c) An agreement may include: 
406.21     (1) a mechanism to implement flexible support systems for 
406.22  improvement in student achievement of education outcomes; 
406.23     (2) a decision-making structure that allows teachers to 
406.24  identify instructional problems and control and apply the 
406.25  resources needed to solve them; 
406.26     (3) a mechanism to allow principals, or other persons 
406.27  having general control and supervision of the school, to make 
406.28  decisions regarding how financial and personnel resources are 
406.29  best allocated at the site and from whom goods or services are 
406.30  purchased; 
406.31     (4) a mechanism to implement parental involvement programs 
406.32  under section 126.69 and to provide for effective parental 
406.33  communication and feedback on this involvement at the site 
406.34  level; 
406.35     (5) a provision that would allow the team to determine who 
406.36  is hired into licensed and nonlicensed positions; 
407.1      (6) a provision that would allow teachers to choose the 
407.2   principal or other person having general control; 
407.3      (7) direct contact with other social service providers; 
407.4      (8) in-service training for site decision-making team 
407.5   members for financial management of school sites; and 
407.6      (9) any other powers and duties determined appropriate by 
407.7   the board. 
407.8      The board of the district remains the legal employer under 
407.9   clauses (5) and (6). 
407.10     (d) Any powers or duties not delegated to the school site 
407.11  management team in the school site management agreement shall 
407.12  remain with the board. 
407.13     (e) Approved agreements shall be filed with the 
407.14  commissioner.  If a board denies a request to enter into a 
407.15  school site management agreement, it shall provide a copy of the 
407.16  request and the reasons for its denial to the commissioner. 
407.17     Sec. 28.  Minnesota Statutes 1996, section 123.35, is 
407.18  amended by adding a subdivision to read: 
407.19     Subd. 29.  [ACTIONS BY DISTRICTS.] Any board may prosecute 
407.20  actions in the name of the district in the following cases: 
407.21     (1) On a contract made with the district, or with the board 
407.22  in its official capacity; 
407.23     (2) To enforce a liability, or a duty enjoined by law, in 
407.24  its favor or in favor of the district; 
407.25     (3) To recover a penalty or forfeiture given by law to it 
407.26  or to the district; or 
407.27     (4) To recover damages for an injury to the rights or 
407.28  property of the district.  
407.29     Sec. 29.  Minnesota Statutes 1996, section 123.35, is 
407.30  amended by adding a subdivision to read: 
407.31     Subd. 30.  [ACTIONS AGAINST DISTRICTS AND TEACHERS.] (a) An 
407.32  action may be brought against any district, either upon a 
407.33  contract made with the district or its board, in its official 
407.34  capacity and within the scope of its authority, or for an injury 
407.35  to the rights of the plaintiff arising from some act or omission 
407.36  of such board.  The action may be brought against the district 
408.1   even if the members of the board making the contract, or guilty 
408.2   of the act or omission complained of, are no longer in office.  
408.3      (b) Upon written request of the teacher involved, any 
408.4   district, however organized, must provide legal counsel for any 
408.5   school teacher against whom claim is made or action is brought 
408.6   for recovery of damages in any tort action involving physical 
408.7   injury to any person or property or for wrongful death arising 
408.8   out of or in connection with the employment of such teacher with 
408.9   the district.  The choice of legal counsel shall be made only 
408.10  after consultation with the teacher.  Provision of counsel under 
408.11  this paragraph shall not be construed to render the district 
408.12  liable for its torts, except as otherwise provided by law; or 
408.13  for reimbursement of costs of counsel provided to the teacher 
408.14  pursuant to the contract obligation of another or otherwise than 
408.15  under this paragraph; or for payment of any judgments or any 
408.16  other costs or disbursements in connection with a judgment where 
408.17  the judgment, cost or disbursement is against the teacher and 
408.18  not against the school district. 
408.19     (c) It is a defense to a civil action for damages against a 
408.20  school official, as defined in section 609.2231, subdivision 5, 
408.21  to prove that the force used by the official was reasonable, was 
408.22  in the exercise of lawful authority, and was necessary under the 
408.23  circumstances to restrain the pupil or to prevent bodily harm or 
408.24  death to another. 
408.25     Sec. 30.  Minnesota Statutes 1996, section 123.35, is 
408.26  amended by adding a subdivision to read: 
408.27     Subd. 31.  [JUDGMENT PAID BY TREASURER.] Except as provided 
408.28  in this subdivision, no execution shall issue upon any judgment 
408.29  against a district for the recovery of money.  Unless the 
408.30  judgment is stayed by appeal, the treasurer shall pay the 
408.31  judgment, upon presentation of a certified copy of the judgment, 
408.32  if the district has sufficient money not otherwise 
408.33  appropriated.  A treasurer who fails to pay the judgment shall 
408.34  be personally liable for the amount, unless the collection is 
408.35  stayed afterwards.  
408.36     Sec. 31.  Minnesota Statutes 1996, section 123.35, is 
409.1   amended by adding a subdivision to read: 
409.2      Subd. 32.  [ISSUANCE OF EXECUTION.] If the judgment is not 
409.3   paid within 30 days after the time when the proceeds of such 
409.4   levy becomes payable by the county treasurer of the district, 
409.5   execution may be issued thereon, to which any property belonging 
409.6   to the district shall be liable. 
409.7      Sec. 32.  [123.353] [SCHOOL SAFETY PATROLS.] 
409.8      Subdivision 1.  [ESTABLISHMENT.] In the exercise of 
409.9   authorized control and supervision over pupils attending schools 
409.10  and other educational institutions, both public and private, the 
409.11  governing board or other directing authority of any such school 
409.12  or institution is empowered to authorize the organization and 
409.13  supervision of school safety patrols for the purpose of 
409.14  influencing and encouraging other pupils to refrain from 
409.15  crossing public highways at points other than regular crossings 
409.16  and for the purpose of directing pupils when and where to cross 
409.17  highways.  
409.18     Subd. 2.  [APPOINTMENT OF MEMBERS.] Unless the parents or 
409.19  guardian of a pupil object in writing to the school authorities 
409.20  to the appointment of the pupil on a school safety patrol, it is 
409.21  lawful for any pupil over nine years of age to be appointed and 
409.22  designated as a member of the patrol in any school in which 
409.23  there are no pupils who have attained such age, any pupil in the 
409.24  highest grade therein may be so appointed and designated.  
409.25  School authorities may also appoint and designate nonpupil 
409.26  adults as members of a school safety patrol on a voluntary or 
409.27  for-hire basis. 
409.28     Subd. 3.  [LIABILITY NOT TO ATTACH.] No liability shall 
409.29  attach either to the school, educational institution, governing 
409.30  board, directing authority, or any individual director, board 
409.31  member, superintendent, principal, teacher, or other school 
409.32  authority by virtue of the organization, maintenance, or 
409.33  operation of such a school safety patrol because of injuries 
409.34  sustained by any pupil, whether a member of the patrol or 
409.35  otherwise by reason of the operation and maintenance of the 
409.36  patrol.  
410.1      Subd. 4.  [IDENTIFY, OPERATION.] Identification and 
410.2   operation of school safety patrols shall be uniform throughout 
410.3   the state and the method of identification and signals to be 
410.4   used shall be as prescribed by the commissioner of public 
410.5   safety.  School safety patrol members may wear fluorescent 
410.6   reflective vests. 
410.7      Sec. 33.  [123.354] [BACKGROUND CHECK.] 
410.8      Subdivision 1.  [BACKGROUND CHECK REQUIRED.] A school 
410.9   hiring authority, as defined in subdivision 4, must request a 
410.10  criminal history background check from the superintendent of the 
410.11  bureau of criminal apprehension on all individuals who are 
410.12  offered employment in the school, as defined in subdivision 4.  
410.13  In order to be eligible for employment, an individual who is 
410.14  offered employment must provide an executed criminal history 
410.15  consent form and a money order or cashier's check payable to the 
410.16  bureau of criminal apprehension for the fee for conducting the 
410.17  criminal history background check.  A school may charge a person 
410.18  offered employment an additional fee of up to $2 to cover the 
410.19  school's costs under this section.  The superintendent must 
410.20  perform the background check by retrieving criminal history data 
410.21  maintained in the criminal justice information system computers. 
410.22     Subd. 2.  [CONDITIONAL HIRING; DISCHARGE.] A school hiring 
410.23  authority may hire an individual pending completion of a 
410.24  background check under subdivision 1 but must notify the 
410.25  individual that the individual's employment may be terminated 
410.26  based on the result of the background check.  A school hiring 
410.27  authority is not liable for failing to hire or for terminating 
410.28  an individual's employment based on the result of a background 
410.29  check under this section. 
410.30     Subd. 3.  [DEFINITIONS.] For purposes of this section: 
410.31     (a) "School" means a school as defined in section 120.101, 
410.32  subdivision 4, except a home-school, and includes a school 
410.33  receiving tribal contract or grant school aid under section 
410.34  124.86. 
410.35     (b) "School hiring authority" means the school principal or 
410.36  other person having general control and supervision of the 
411.1   school. 
411.2      Sec. 34.  [123.355] [INSUFFICIENT FUNDS TO PAY ORDERS.] 
411.3      (a) In the event that a district or a cooperative unit 
411.4   defined in section 123.35, subdivision 19b, has insufficient 
411.5   funds to pay its usual lawful current obligations, subject to 
411.6   section 471.69, the board may enter into agreements with banks 
411.7   or any person to take its orders.  Any order drawn, after having 
411.8   been presented to the treasurer for payment and not paid for 
411.9   want of funds, must be endorsed by the treasurer by putting on 
411.10  the back thereof the words "not paid for want of funds," giving 
411.11  the date of endorsement and signed by the treasurer.  The 
411.12  treasurer shall make a record of such presentment, nonpayment 
411.13  and endorsement.  The treasurer shall serve a written notice 
411.14  upon the payee or the payee's assignee, personally, or by mail, 
411.15  when the treasurer is prepared to pay such orders.  The notice 
411.16  may be directed to the payee or the payee's assignee at the 
411.17  address given in writing by such payee or assignee to such 
411.18  treasurer, at any time prior to the service of such notice.  No 
411.19  order shall draw any interest if such address is not given when 
411.20  the same is unknown to the treasurer, and no order shall draw 
411.21  any interest after the service of such notice.  
411.22     (b) A district may enter, subject to section 471.69, into a 
411.23  line of credit agreement with a financial institution.  The 
411.24  amount of credit available must not exceed 95 percent of average 
411.25  expenditure per month of operating expenditures in the previous 
411.26  fiscal year.  Any amount advanced must be repaid no later than 
411.27  45 days after the day of advancement. 
411.28     Sec. 35.  [123.356] [LAND IN SETTLEMENT OF CLAIM AGAINST 
411.29  SURETY.] 
411.30     Subdivision 1.  [POWER OF BOARD TO ACCEPT.] When any 
411.31  district now has or asserts any claim or judgment against any 
411.32  sureties on the bonds of any depository of its funds for the 
411.33  failure of any such depository to account for or pay over any 
411.34  such funds and the board or other governing body of the district 
411.35  determines that the claim or judgment, or some part thereof, is 
411.36  not collectible in cash, then any such board or governing body 
412.1   may by resolution determine to accept and receive, in complete 
412.2   or partial satisfaction or settlement of any such claim or 
412.3   judgment, lands or interest therein within this state and may 
412.4   acquire the same for and in the name of such district either by 
412.5   deed or deeds of conveyance from the owners, or as purchaser at 
412.6   execution sale or sales under any such judgment.  
412.7      Subd. 2.  [TITLE TO BE HELD BY DISTRICT.] The district must 
412.8   hold title to lands or interests so acquired.  The district must 
412.9   sell each tract or portion as soon as there may be realized the 
412.10  fair value as determined by such board.  Any such sale may be 
412.11  authorized by resolution of the board, and may be made for cash, 
412.12  or for part cash and the deferred balance secured by contract 
412.13  for deed or purchase money mortgage, on such terms as the board 
412.14  approves.  Conveyances, contracts, or other instruments 
412.15  evidencing any sale shall be executed by the chair and the clerk 
412.16  of the board.  Lands so acquired and held for resale shall be 
412.17  deemed public lands used for exclusively public purposes and as 
412.18  such shall be exempt from taxation.  
412.19     Sec. 36.  [123.357] [ATHLETIC PROGRAMS; SEX 
412.20  DISCRIMINATION.] 
412.21     Subdivision 1.  [PURPOSE.] The legislature recognizes 
412.22  certain past inequities in access to athletic programs and in 
412.23  the various degrees of athletic opportunity previously afforded 
412.24  members of each sex.  The purpose of this section is to provide 
412.25  an equal opportunity for members of both sexes to participate in 
412.26  athletic programs.  
412.27     Subd. 2.  [EQUAL OPPORTUNITY IN ATHLETIC PROGRAMS.] Each 
412.28  educational institution or public service shall provide equal 
412.29  opportunity for members of both sexes to participate in its 
412.30  athletic program.  In determining whether equal opportunity to 
412.31  participate in athletic programs is available for the purposes 
412.32  of this section, at least the following factors shall be 
412.33  considered to the extent that they are applicable to a given 
412.34  situation:  whether the opportunity for males and females to 
412.35  participate in the athletic program reflects the demonstrated 
412.36  interest in athletics of the males and females in the student 
413.1   body of the educational institution or the population served by 
413.2   the public service; whether the variety and selection of sports 
413.3   and levels of competition effectively accommodate the 
413.4   demonstrated interests of members of both sexes; the provision 
413.5   of equipment and supplies; scheduling of games and practice 
413.6   times; assignment of coaches; provision of locker rooms; 
413.7   practice and competitive facilities; and the provision of 
413.8   necessary funds for teams of one sex.  
413.9      Subd. 3.  [EXCEPTIONS.] (1) Notwithstanding any other state 
413.10  law to the contrary, in athletic programs operated by 
413.11  educational institutions or public services and designed for 
413.12  participants 12 years old or older or in the 7th grade or above, 
413.13  it is not an unfair discriminatory practice to restrict 
413.14  membership on an athletic team to participants of one sex whose 
413.15  overall athletic opportunities have previously been limited. 
413.16     (2) When an educational institution or a public service 
413.17  provides athletic teams for children 11 years old or younger or 
413.18  in the 6th grade or below, those teams shall be operated without 
413.19  restrictions on the basis of sex, except that when overall 
413.20  athletic opportunities for one sex have previously been limited 
413.21  and there is a demonstrated interest by members of that sex to 
413.22  participate on a team restricted to members of that sex, the 
413.23  educational institution or public service may provide a team 
413.24  restricted to members of that sex. 
413.25     (3) When two teams in the same sport are in fact separated 
413.26  or substantially separated according to sex, the two teams shall 
413.27  be provided with substantially equal budgets per participant, 
413.28  exclusive of gate receipts and other revenues generated by that 
413.29  sport, and in all other respects shall be treated in a 
413.30  substantially equal manner.  However, nothing in this section 
413.31  shall be construed to require the two teams to conduct combined 
413.32  practice sessions or any other combined activities related to 
413.33  athletics. 
413.34     (4) If two teams are provided in the same sport, one of 
413.35  these teams may be restricted to members of a sex whose overall 
413.36  athletic opportunities have previously been limited, and members 
414.1   of either sex shall be permitted to try out for the other team. 
414.2      (5) Notwithstanding the provisions of clauses (1), (2) and 
414.3   (4), any wrestling team may be restricted to members of one sex 
414.4   whether or not the overall athletic opportunities of that sex 
414.5   have previously been limited, provided that programs or events 
414.6   are provided for each sex to the extent the educational 
414.7   institution or public service determines that these programs or 
414.8   events are necessary to accommodate the demonstrated interest of 
414.9   each sex to participate in wrestling. 
414.10     Subd. 4.  [PROVISION OF SEPARATE TEAMS.] When an equal 
414.11  opportunity to participate in the elementary or secondary school 
414.12  level athletic program of an educational institution or public 
414.13  service is not provided to members of a sex whose overall 
414.14  athletic opportunities have previously been limited, that 
414.15  educational institution or public service shall, where there is 
414.16  demonstrated interest, provide separate teams for members of the 
414.17  excluded sex in sports which it determines will provide members 
414.18  of that excluded sex with an equal opportunity to participate in 
414.19  its athletic program and which will attempt to accommodate their 
414.20  demonstrated interests.  
414.21     Subd. 5.  [RULES.] The state board of education, after 
414.22  consultation with the commissioner of human rights must 
414.23  promulgate rules in accordance with chapter 14 to implement this 
414.24  section to prevent discrimination in elementary and secondary 
414.25  school athletic programs operated by educational institutions.  
414.26  The rules promulgated by the state board pursuant to this 
414.27  section shall not require athletic competition or tournaments 
414.28  for teams whose membership may be restricted to members of a sex 
414.29  whose overall athletic opportunities have previously been 
414.30  limited to be scheduled in conjunction with the scheduling of 
414.31  athletic competition or tournaments for teams whose membership 
414.32  is not so restricted by this section.  Any organization, 
414.33  association or league entered into by elementary or secondary 
414.34  schools or public services for the purpose of promoting sports 
414.35  or adopting rules and regulations for the conduct of athletic 
414.36  contests between members shall provide rules and regulations and 
415.1   conduct its activities so as to permit its members to comply 
415.2   fully with this section.  The rules of that organization, 
415.3   association or league may provide separate seasons for athletic 
415.4   competition or tournaments in a sport for teams whose membership 
415.5   may be restricted to members of a sex whose overall athletic 
415.6   opportunities have previously been limited from athletic 
415.7   competition or tournaments established for teams in that same 
415.8   sport whose membership is not so restricted by this section, and 
415.9   its rules may prohibit a participating student from competing on 
415.10  more than one school team in a given sport during a single 
415.11  school year.  
415.12     Sec. 37.  [123.358] [REPORTS OF DANGEROUS WEAPON INCIDENTS 
415.13  IN SCHOOL ZONES.] 
415.14     Subdivision 1.  [DEFINITIONS.] As used in this section: 
415.15     (1) "dangerous weapon" has the meaning given it in section 
415.16  609.02, subdivision 6; 
415.17     (2) "school" has the meaning given it in section 120.101, 
415.18  subdivision 4; and 
415.19     (3) "school zone" has the meaning given it in section 
415.20  152.01, subdivision 14a, clauses (1) and (3). 
415.21     Subd. 2.  [REPORTS; CONTENT.] By January 1, 1994, the 
415.22  commissioner, in consultation with the criminal and juvenile 
415.23  information policy group, shall develop a standardized form to 
415.24  be used by schools to report incidents involving the use or 
415.25  possession of a dangerous weapon in school zones.  The form 
415.26  shall include the following information: 
415.27     (1) a description of each incident, including a description 
415.28  of the dangerous weapon involved in the incident; 
415.29     (2) where, at what time, and under what circumstances the 
415.30  incident occurred; 
415.31     (3) information about the offender, other than the 
415.32  offender's name, including the offender's age; whether the 
415.33  offender was a student and, if so, where the offender attended 
415.34  school; and whether the offender was under school expulsion or 
415.35  suspension at the time of the incident; 
415.36     (4) information about the victim other than the victim's 
416.1   name, if any, including the victim's age; whether the victim was 
416.2   a student and, if so, where the victim attended school; and if 
416.3   the victim was not a student, whether the victim was employed at 
416.4   the school; 
416.5      (5) the cost of the incident to the school and to the 
416.6   victim; and 
416.7      (6) the action taken by the school administration to 
416.8   respond to the incident. 
416.9      The commissioner also shall develop an alternative 
416.10  reporting format that allows school districts to provide 
416.11  aggregate data, with an option to use computer technology to 
416.12  report the data. 
416.13     Subd. 3.  [REPORTS; FILING REQUIREMENTS.] By February 1 and 
416.14  July 1 of each year, each school shall report incidents 
416.15  involving the use or possession of a dangerous weapon in school 
416.16  zones to the commissioner.  The reports must be made on the 
416.17  standardized forms or using the alternative format developed by 
416.18  the commissioner under subdivision 2.  The commissioner shall 
416.19  compile the information it receives from the schools and report 
416.20  it annually to the commissioner of public safety, the criminal 
416.21  and juvenile information policy group, and the legislature. 
416.22     Sec. 38.  [123.359] [FINDINGS; IMPROVING INSTRUCTION AND 
416.23  CURRICULUM.] 
416.24     The legislature finds that a process is needed to enable 
416.25  school boards and communities to decide matters related to 
416.26  planning, providing, and improving education instruction and 
416.27  curriculum in the context of the state's high school graduation 
416.28  standards.  The process should help districts evaluate the 
416.29  impact of instruction and curriculum on students' abilities to 
416.30  meet graduation standards, use evaluation results to improve 
416.31  instruction and curriculum, and determine services that 
416.32  districts and other public education entities can provide 
416.33  collaboratively with institutions including families and private 
416.34  or public organizations and agencies.  The legislature 
416.35  anticipates that a highly focused public education strategy will 
416.36  be an integral part of each district's review and improvement of 
417.1   instruction and curriculum. 
417.2      Sec. 39.  [123.3592] [SCHOOL DISTRICT PROCESS.] 
417.3      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
417.4   section and section 123.97, the following terms have the 
417.5   meanings given them. 
417.6      (a) "Instruction" means methods of providing learning 
417.7   experiences that enables a student to meet graduation standards. 
417.8      (b) "Curriculum" means written plans for providing students 
417.9   with learning experiences that lead to knowledge, skills, and 
417.10  positive attitudes. 
417.11     Subd. 2.  [ADOPTING POLICIES.] A school board shall adopt 
417.12  annually a written policy that includes the following: 
417.13     (1) district goals for instruction and curriculum; 
417.14     (2) a process for evaluating each student's progress toward 
417.15  meeting graduation standards and identifying the strengths and 
417.16  weaknesses of instruction and curriculum affecting students' 
417.17  progress; 
417.18     (3) a system for periodically reviewing all instruction and 
417.19  curriculum; 
417.20     (4) a plan for improving instruction and curriculum; and 
417.21     (5) an instruction plan that includes education 
417.22  effectiveness processes developed under section 121.608 and 
417.23  integrates instruction, curriculum, and technology. 
417.24     Subd. 3.  [INSTRUCTION AND CURRICULUM ADVISORY COMMITTEE.] 
417.25  Each school board shall establish an instruction and curriculum 
417.26  advisory committee to ensure active community participation in 
417.27  all phases of planning and improving the instruction and 
417.28  curriculum affecting state graduation standards.  A district 
417.29  advisory committee, to the extent possible, shall reflect the 
417.30  diversity of the district and its learning sites, and shall 
417.31  include teachers, parents, support staff, pupils, and other 
417.32  community residents.  The district may establish building teams 
417.33  as subcommittees of the district advisory committee under 
417.34  subdivision 4.  The district advisory committee shall recommend 
417.35  to the school board districtwide education standards, 
417.36  assessments, and program evaluations.  Learning sites may expand 
418.1   upon district evaluations of instruction, curriculum, 
418.2   assessments, or programs.  Whenever possible, parents and other 
418.3   community residents shall comprise at least two-thirds of 
418.4   advisory committee members. 
418.5      Subd. 4.  [BUILDING TEAM.] A school may establish a 
418.6   building team to develop and implement an education 
418.7   effectiveness plan to improve instruction and curriculum.  The 
418.8   team shall advise the board and the advisory committee about 
418.9   developing an instruction and curriculum improvement plan that 
418.10  aligns curriculum, assessment of student progress in meeting 
418.11  state graduation standards, and instruction. 
418.12     Subd. 5.  [REPORT.] (a) By October 1 of each year, the 
418.13  school board shall use standard statewide reporting procedures 
418.14  the commissioner develops and adopt a report that includes the 
418.15  following: 
418.16     (1) student performance goals for meeting state graduation 
418.17  standards adopted for that year; 
418.18     (2) results of local assessment data, and any additional 
418.19  test data; 
418.20     (3) the annual school district improvement plans; and 
418.21     (4) information about district and learning site progress 
418.22  in realizing previously adopted improvement plans. 
418.23     (b) The school board shall publish the report in the local 
418.24  newspaper with the largest circulation in the district or by 
418.25  mail.  The board shall make a copy of the report available to 
418.26  the public for inspection.  The board shall send a copy of the 
418.27  report to the commissioner of children, families, and learning 
418.28  by October 15 of each year. 
418.29     (c) The title of the report shall contain the name and 
418.30  number of the school district and read "Annual Report on 
418.31  Curriculum, Instruction, and Student Performance."  The report 
418.32  must include at least the following information about advisory 
418.33  committee membership: 
418.34     (1) the name of each committee member and the date when 
418.35  that member's term expires; 
418.36     (2) the method and criteria the school board uses to select 
419.1   committee members; and 
419.2      (3) the date by which a community resident must apply to 
419.3   next serve on the committee. 
419.4      Subd. 6.  [STUDENT EVALUATION.] The school board annually 
419.5   shall provide high school graduates or GED recipients who 
419.6   receive a diploma or its equivalent from the school district 
419.7   with an opportunity to report to the board on the following: 
419.8      (1) the quality of district instruction, curriculum, and 
419.9   services; 
419.10     (2) the quality of district delivery of instruction, 
419.11  curriculum, and services; 
419.12     (3) the utility of district facilities; and 
419.13     (4) the effectiveness of district administration. 
419.14     Subd. 7.  [PERIODIC REPORT.] Each school district shall 
419.15  periodically ask affected constituencies about their level of 
419.16  satisfaction with school.  The district shall include the 
419.17  results of this evaluation in the report required under 
419.18  subdivision 5. 
419.19     Subd. 8.  [BIENNIAL EVALUATION; ASSESSMENT PROGRAM.] At 
419.20  least once every two years, the district report shall include an 
419.21  evaluation of the district testing programs, according to the 
419.22  following: 
419.23     (1) written objectives of the assessment program; 
419.24     (2) names of tests and grade levels tested; 
419.25     (3) use of test results; and 
419.26     (4) implementation of an assurance of mastery program. 
419.27     Sec. 40.  [123.3594] [PARENTAL INVOLVEMENT PROGRAMS.] 
419.28     Subdivision 1.  [PROGRAM GOALS.] The department, in 
419.29  consultation with the state curriculum advisory committee, must 
419.30  develop guidelines and model plans for parental involvement 
419.31  programs that will: 
419.32     (1) engage the interests and talents of parents or 
419.33  guardians in recognizing and meeting the emotional, 
419.34  intellectual, and physical needs of their school-age children; 
419.35     (2) promote healthy self-concepts among parents or 
419.36  guardians and other family members; 
420.1      (3) offer parents or guardians a chance to share and learn 
420.2   about educational skills, techniques, and ideas; 
420.3      (4) provide creative learning experiences for parents or 
420.4   guardians and their school-age children, including involvement 
420.5   from parents or guardians of color; 
420.6      (5) encourage parents to actively participate in their 
420.7   district's curriculum advisory committee under section 126.666 
420.8   in order to assist the school board in improving children's 
420.9   education programs; and 
420.10     (6) encourage parents to help in promoting school 
420.11  desegregation/integration. 
420.12     Subd. 2.  [PLAN CONTENTS.] Model plans for a parental 
420.13  involvement program must include at least the following: 
420.14     (1) program goals; 
420.15     (2) means for achieving program goals; 
420.16     (3) methods for informing parents or guardians, in a timely 
420.17  way, about the program; 
420.18     (4) strategies for ensuring the full participation of 
420.19  parents or guardians, including those parents or guardians who 
420.20  lack literacy skills or whose native language is not English, 
420.21  including involvement from parents or guardians of color; 
420.22     (5) procedures for coordinating the program with 
420.23  kindergarten through grade 12 curriculum, with parental 
420.24  involvement programs currently available in the community, with 
420.25  the PER process under sections 126.661 to 126.67, and with other 
420.26  education facilities located in the community; 
420.27     (6) strategies for training teachers and other school staff 
420.28  to work effectively with parents and guardians; 
420.29     (7) procedures for parents or guardians and educators to 
420.30  evaluate and report progress toward program goals; and 
420.31     (8) a mechanism for convening a local community advisory 
420.32  committee composed primarily of parents or guardians to advise a 
420.33  district on implementing a parental involvement program. 
420.34     Subd. 3.  [PLAN ACTIVITIES.] Activities contained in the 
420.35  model plans must include: 
420.36     (1) educational opportunities for families that enhance 
421.1   children's learning development; 
421.2      (2) educational programs for parents or guardians on 
421.3   families' educational responsibilities and resources; 
421.4      (3) the hiring, training, and use of parental involvement 
421.5   liaison workers to coordinate family involvement activities and 
421.6   to foster communication among families, educators, and students; 
421.7      (4) curriculum materials and assistance in implementing 
421.8   home and community-based learning activities that reinforce and 
421.9   extend classroom instruction and student motivation; 
421.10     (5) technical assistance, including training to design and 
421.11  carry out family involvement programs; 
421.12     (6) parent resource centers; 
421.13     (7) parent training programs and reasonable and necessary 
421.14  expenditures associated with parents' attendance at training 
421.15  sessions; 
421.16     (8) reports to parents on children's progress; 
421.17     (9) use of parents as classroom volunteers, or as 
421.18  volunteers in before and after school programs for school-age 
421.19  children, tutors, and aides; 
421.20     (10) soliciting parents' suggestions in planning, 
421.21  developing, and implementing school programs; 
421.22     (11) educational programs and opportunities for parents or 
421.23  guardians that are multicultural, gender fair, and disability 
421.24  sensitive; 
421.25     (12) involvement in a district's curriculum advisory 
421.26  committee or a school building team under section 126.666; and 
421.27     (13) opportunities for parent involvement in developing, 
421.28  implementing, or evaluating school and district 
421.29  desegregation/integration plans. 
421.30     Sec. 41.  [123.3598] [PARENTAL CURRICULUM REVIEW.] 
421.31     Each school district shall have a procedure for a parent, 
421.32  guardian, or an adult student, 18 years of age or older, to 
421.33  review the content of the instructional materials to be provided 
421.34  to a minor child or to an adult student and, if the parent, 
421.35  guardian, or adult student objects to the content, to make 
421.36  reasonable arrangements with school personnel for alternative 
422.1   instruction.  Alternative instruction may be provided by the 
422.2   parent, guardian, or adult student if the alternative 
422.3   instruction, if any, offered by the school board does not meet 
422.4   the concerns of the parent, guardian, or adult student.  The 
422.5   school board is not required to pay for the costs of alternative 
422.6   instruction provided by a parent, guardian, or adult student.  
422.7   School personnel may not impose an academic or other penalty 
422.8   upon a student merely for arranging alternative instruction 
422.9   under this section.  School personnel may evaluate and assess 
422.10  the quality of the student's work. 
422.11     Sec. 42.  Minnesota Statutes 1996, section 123.36, is 
422.12  amended to read: 
422.13     123.36 [SCHOOLHOUSES AND SITES; ACCESS FOR NONCURRICULAR 
422.14  PURPOSES.] 
422.15     Subdivision 1.  [SITES.] According to section 124.91, 
422.16  subdivision 1, or 465.71, when funds are available therefor, the 
422.17  board may locate and acquire necessary sites of schoolhouses or 
422.18  enlargements, or additions to existing schoolhouse sites by 
422.19  lease, purchase or condemnation under the right of eminent 
422.20  domain; it may erect schoolhouses thereon on the sites; it may 
422.21  erect or purchase garages for district-owned school buses.  When 
422.22  property is taken by eminent domain by authority of this 
422.23  subdivision when needed by the school district for such 
422.24  purposes, the fact that the property so needed has been acquired 
422.25  by the owner under the power of eminent domain or is already 
422.26  devoted to public use, shall not prevent its acquisition by 
422.27  the school district.  The board may sell or exchange 
422.28  schoolhouses or sites, and execute deeds of conveyance thereof. 
422.29     Subd. 5.  [USE OF SCHOOL HOUSES.] The board may authorize 
422.30  the use of any schoolhouses in the district for divine worship, 
422.31  Sunday schools, public meetings, elections, post-secondary 
422.32  instruction, and other community purposes that, in its judgment, 
422.33  will not interfere with their use for school purposes.  Before 
422.34  permitting any of these uses, the board may require a cash or 
422.35  corporate surety bond in a reasonable amount conditioned for the 
422.36  proper use of the schoolhouse, payment of all rent, and repair 
423.1   of all damage occasioned caused by the use.  It may determine a 
423.2   reasonable charge for using the schoolhouse. 
423.3      It may authorize the use of any schoolhouses or buildings 
423.4   owned or leased by the district for primaries, elections, 
423.5   registrations, and related activities if the board determines 
423.6   that the use will not interfere with school purposes.  It may 
423.7   impose reasonable regulations and conditions upon the use as may 
423.8   seem necessary and proper. 
423.9      Subd. 7.  [LEASE ROOMS OR BUILDINGS.] When necessary, the 
423.10  board may lease rooms or buildings for school purposes. 
423.11     Subd. 10.  [LEASE FOR NONSCHOOL PURPOSE.] (a) The board may 
423.12  lease to any person, business, or organization a schoolhouse 
423.13  that is not needed for school purposes, or part of a schoolhouse 
423.14  that is not needed for school purposes if the board determines 
423.15  that leasing part of a schoolhouse does not interfere with the 
423.16  educational programs taking place in the rest of the building. 
423.17  The board may charge and collect reasonable consideration for 
423.18  the lease and may determine the terms and conditions of the 
423.19  lease. 
423.20     (b) In districts with outstanding bonds, the net proceeds 
423.21  of the lease shall must be first deposited in the debt 
423.22  retirement fund of the district in an amount sufficient to meet 
423.23  when due that percentage of the principal and interest payments 
423.24  for outstanding bonds that is ascribable to the payment of 
423.25  expenses necessary and incidental to the construction or 
423.26  purchase of the particular building or property that is leased.  
423.27  Any remaining net proceeds in these districts may be deposited 
423.28  in either the debt redemption fund or capital expenditure fund.  
423.29  All net proceeds of the lease in districts without outstanding 
423.30  bonds shall be deposited in the capital expenditure fund of the 
423.31  district. 
423.32     (c) The board may make capital improvements, including 
423.33  fixtures, to a schoolhouse or a portion thereof, not exceeding 
423.34  in cost the replacement value of the schoolhouse, to facilitate 
423.35  its rental, and the lease of an improved schoolhouse, or part of 
423.36  it, shall provide for rentals which will recover the cost of the 
424.1   improvements over the initial term of the lease.  
424.2   Notwithstanding clause (b), the portion of the rentals 
424.3   representing the cost of the improvements shall be deposited in 
424.4   the capital expenditure fund of the district and the balance of 
424.5   the rentals shall be used as provided in clause (b). 
424.6      Subd. 11.  [SCHOOLHOUSE CLOSING.] The board may close a 
424.7   schoolhouse only after a public hearing on the question of the 
424.8   necessity and practicability of the proposed closing.  Published 
424.9   notice of the hearing shall be given for two weeks in the 
424.10  official newspaper of the district.  The time and place of the 
424.11  meeting, the description and location of the schoolhouse, and a 
424.12  statement of the reasons for the closing shall must be specified 
424.13  in the notice.  Parties requesting to give testimony for and 
424.14  against the proposal shall be heard by the board before it makes 
424.15  a final decision to close or not to close the schoolhouse. 
424.16     Subd. 13.  [PROCEEDS OF SALE OR EXCHANGE.] Proceeds of the 
424.17  sale or exchange of school buildings or real property of the 
424.18  school district shall must be used as provided in this 
424.19  subdivision. 
424.20     (a) In districts with outstanding bonds, the proceeds of 
424.21  the sale or exchange shall first be deposited in the debt 
424.22  retirement fund of the district in an amount sufficient to meet 
424.23  when due that percentage of the principal and interest payments 
424.24  for outstanding bonds which is ascribable to the payment of 
424.25  expenses necessary and incidental to the construction or 
424.26  purchase of the particular building or property which is sold.  
424.27     (b) After satisfying the requirements of paragraph (a), a 
424.28  district with outstanding bonds may deposit proceeds of the sale 
424.29  or exchange in its capital expenditure fund if the amount 
424.30  deposited is used for the following:  
424.31     (1) for expenditures for the cleanup of polychlorinated 
424.32  biphenyls, if the method for cleanup is approved by the 
424.33  department of children, families, and learning; 
424.34     (2) for capital expenditures for the betterment, as defined 
424.35  in section 475.51, subdivision 8, of district-owned school 
424.36  buildings; or 
425.1      (3) to replace the building or property sold.  
425.2      (c) In a district with outstanding bonds, the amount of the 
425.3   proceeds of the sale or exchange remaining after the application 
425.4   of paragraphs (a) and (b), which is sufficient to meet when due 
425.5   that percentage of the principal and interest payments for the 
425.6   district's outstanding bonds which is not governed by paragraph 
425.7   (a), shall be deposited in the debt retirement fund.  
425.8      (d) Any proceeds of the sale or exchange remaining in 
425.9   districts with outstanding bonds after the application of 
425.10  paragraphs (a), (b), and (c), and all proceeds of the sale or 
425.11  exchange in districts without outstanding bonds shall be 
425.12  deposited in the capital expenditure fund of the district. 
425.13     (e) Notwithstanding paragraphs (b) and (c), a district with 
425.14  outstanding bonds may deposit in its capital expenditure fund 
425.15  and use for any lawful capital expenditure without the reduction 
425.16  of any levy limitation the same percentage of the proceeds of 
425.17  the sale or exchange of a building or property as the percentage 
425.18  of the initial cost of purchasing or constructing the building 
425.19  or property which was paid using revenue from the capital 
425.20  expenditure fund.  
425.21     Subd. 14.  [ASBESTOS REMOVAL AND POLYCHLORINATED BIPHENYLS 
425.22  CLEANUP.] Notwithstanding any law to the contrary, school 
425.23  districts may, without an election, enter into contracts 
425.24  extending beyond the end of the fiscal year to pay the costs of 
425.25  removal or encapsulation of asbestos or cleanup of 
425.26  polychlorinated biphenyls found in school buildings or on school 
425.27  property.  
425.28     Subd. 15.  [USE OF BUILDINGS BY LOWER GRADES.] (a) In 
425.29  addition to the protections provided in existing building and 
425.30  fire code rules and standards, the following alternatives apply 
425.31  for existing school buildings: 
425.32     (1) rooms occupied by preschool, kindergarten, and first 
425.33  and second grade students for classrooms, latchkey, day care, 
425.34  early childhood family education or teen parent or similar 
425.35  programs may be located on any floor level below the fourth 
425.36  story of a school building if the building is protected 
426.1   throughout by a complete automatic sprinkler system and a 
426.2   complete automatic fire alarm system consisting of automatic 
426.3   smoke detection throughout the exit system and approved smoke 
426.4   detection in all rooms and areas other than classrooms and 
426.5   offices; 
426.6      (2) rooms used by preschool, kindergarten, or first grade 
426.7   students for classrooms, latchkey, day care, early childhood 
426.8   family education or teen parent or similar programs, must be 
426.9   located on the story of exit discharge, and rooms used by second 
426.10  grade students, for any purpose, must be located on the story of 
426.11  exit discharge or one story above unless one of the following 
426.12  conditions is met: 
426.13     (i) a complete automatic sprinkler system is provided 
426.14  throughout the building, the use of the affected room or space 
426.15  is limited to one grade level at a time, and exiting is provided 
426.16  from the affected room or space which is independent from the 
426.17  exiting system used by older students; or 
426.18     (ii) a complete approved automatic fire alarm system is 
426.19  installed throughout the building consisting of automatic smoke 
426.20  detection throughout the exit system and approved detection in 
426.21  all rooms and areas other than classrooms and offices, the use 
426.22  of the affected room or space is limited to one grade level at a 
426.23  time and exiting is provided from the affected room or space 
426.24  which is independent from the exiting system used by older 
426.25  students. 
426.26     (b) For purposes of paragraph (a), clause (2), pupils from 
426.27  second grade down are considered one grade level. 
426.28     (c) Accessory spaces, including gymnasiums, cafeterias, 
426.29  media centers, auditoriums, libraries, and band and choir rooms, 
426.30  which are used on an occasional basis by preschool, 
426.31  kindergarten, and first and second grade students are permitted 
426.32  to be located one level above or one level below the story of 
426.33  exit discharge, provided the building is protected throughout by 
426.34  a complete automatic sprinkler system or a complete approved 
426.35  corridor smoke detection system. 
426.36     (d) Paragraphs (a) and (c) supersede any contrary 
427.1   provisions of the state fire code or state building code and 
427.2   rules relating to those codes must be amended by the state 
427.3   agencies having jurisdiction of them. 
427.4      (e) Paragraphs (a) to (d) are effective for new school 
427.5   buildings beginning July 1, 1994. 
427.6      Sec. 43.  Minnesota Statutes 1996, section 123.37, is 
427.7   amended to read: 
427.8      123.37 [INDEPENDENT SCHOOL DISTRICTS, CONTRACTS.] 
427.9      Subdivision 1.  [CONTRACTS.] No A contract for work or 
427.10  labor, or for the purchase of furniture, fixtures, or other 
427.11  property, except books registered under the copyright laws, or 
427.12  for the construction or repair of school houses, the estimated 
427.13  cost or value of which shall exceed that specified in section 
427.14  471.345, subdivision 3, shall must not be made by the school 
427.15  board without first advertising for bids or proposals by two 
427.16  weeks' published notice in the official newspaper.  This 
427.17  notice shall must state the time and place of receiving bids and 
427.18  contain a brief description of the subject matter. 
427.19     Additional publication in the official newspaper or 
427.20  elsewhere may be made as the board shall deem necessary. 
427.21     After taking into consideration conformity with the 
427.22  specifications, terms of delivery, and other conditions imposed 
427.23  in the call for bids, every such contract shall must be awarded 
427.24  to the lowest responsible bidder, be duly executed in writing, 
427.25  and be otherwise conditioned as required by law.  The person to 
427.26  whom the contract is awarded shall give a sufficient bond to the 
427.27  board for its faithful performance.  Notwithstanding section 
427.28  574.26 or any other law to the contrary, on a contract limited 
427.29  to the purchase of a finished tangible product, a school board 
427.30  may require, at its discretion, a performance bond of a 
427.31  contractor in the amount the board considers necessary.  A 
427.32  record shall must be kept of all bids, with names of bidders and 
427.33  amount of bids, and with the successful bid indicated thereon.  
427.34  A bid containing an alteration or erasure of any price contained 
427.35  in the bid which is used in determining the lowest responsible 
427.36  bid shall must be rejected unless the alteration or erasure is 
428.1   corrected as herein provided in this section.  An alteration or 
428.2   erasure may be crossed out and the correction thereof printed in 
428.3   ink or typewritten adjacent thereto and initialed in ink by the 
428.4   person signing the bid.  In the case of identical low bids from 
428.5   two or more bidders, the board may, at its discretion, utilize 
428.6   negotiated procurement methods with the tied low bidders for 
428.7   that particular transaction, so long as the price paid does not 
428.8   exceed the low tied bid price.  In the case where only a single 
428.9   bid is received, the board may, at its discretion, negotiate a 
428.10  mutually agreeable contract with the bidder so long as the price 
428.11  paid does not exceed the original bid.  If no satisfactory bid 
428.12  is received, the board may readvertise.  Standard requirement 
428.13  price contracts established for supplies or services to be 
428.14  purchased by the district shall must be established by 
428.15  competitive bids.  Such standard requirement price contracts may 
428.16  contain escalation clauses and may provide for a negotiated 
428.17  price increase or decrease based upon a demonstrable 
428.18  industrywide or regional increase or decrease in the vendor's 
428.19  costs.  Either party to the contract may request that the other 
428.20  party demonstrate such increase or decrease.  The term of such 
428.21  contracts shall must not exceed two years with an option on the 
428.22  part of the district to renew for an additional two years.  
428.23  Provided that in the case of Contracts for the purchase of 
428.24  perishable food items, except milk for school lunches and 
428.25  vocational training programs, a contract of in any amount may be 
428.26  made by direct negotiation by obtaining two or more written 
428.27  quotations for the purchase or sale, when possible, without 
428.28  advertising for bids or otherwise complying with the 
428.29  requirements of this section or section 471.345, subdivision 3.  
428.30  All quotations obtained shall be kept on file for a period of at 
428.31  least one year after receipt thereof. 
428.32     Every contract made without compliance with the provisions 
428.33  of this section shall be void.  Provided, that Except in the 
428.34  case of the destruction of buildings or injury thereto, where 
428.35  the public interest would suffer by delay, contracts for repairs 
428.36  may be made without advertising for bids. 
429.1      Subd. 1a.  [CONTRACT WITHIN BUDGETED AMOUNTS.] The board 
429.2   may authorize its superintendent or business manager to lease, 
429.3   purchase, and contract for goods and services within the budget 
429.4   as approved by the board, provided that.  Any transaction in an 
429.5   amount exceeding the minimum amount for which bids are required 
429.6   must first be specifically authorized by the board and must 
429.7   fulfill all other applicable requirements in subdivision 1. 
429.8      Subd. 1b.  [TRANSPORTATION; FUEL.] Notwithstanding the 
429.9   provisions of subdivision 1 or section 471.345, a contract for 
429.10  the transportation of school children, or a contract for the 
429.11  purchase of petroleum heating fuel or fuel for vehicles may be 
429.12  made by direct negotiation, by obtaining two or more written 
429.13  quotations for the service when possible, or upon sealed bids.  
429.14  At least 30 days before awarding a directly negotiated contract, 
429.15  the school district shall must, by published notice, request 
429.16  quotations for the service to be provided.  All quotations 
429.17  obtained shall must be kept on file for a period of at least one 
429.18  year after receipt thereof.  If a contract is made by direct 
429.19  negotiation, all quotations shall must be public information.  
429.20  If a contract is made upon sealed bids, the procedure for 
429.21  advertising and awarding bids shall conform to the provisions of 
429.22  subdivision 1 except as otherwise provided in this subdivision. 
429.23     Notwithstanding the provisions of subdivision 1 or section 
429.24  574.26, a performance bond shall must be required of a 
429.25  contractor on a contract for the transportation of school 
429.26  children only when and in the amount deemed necessary by and at 
429.27  the discretion of the school board.  Such a performance bond 
429.28  must be in the amount determined by the board. 
429.29     Subd. 2.  [CONTRACTS WITH BOARD MEMBERS.] Members of the 
429.30  board are authorized to contract with, to work for, and furnish 
429.31  supplies to the district subject to the provisions of section 
429.32  471.87. 
429.33     Sec. 44.  Minnesota Statutes 1996, section 123.38, is 
429.34  amended to read: 
429.35     123.38 [COCURRICULAR AND EXTRACURRICULAR ACTIVITIES; 
429.36  INSURANCE.] 
430.1      Subdivision 1.  [ACTIVITIES OUTSIDE DISTRICT LIMITS.] 
430.2   Whenever it shall appear appears to be beneficial and for the 
430.3   best interest of the district and the pupils of the district to 
430.4   carry on any school sport activities or educational activities 
430.5   connected with their studies outside of the territorial limits 
430.6   of the school district, the board may authorize such activities 
430.7   to be conducted under such rules and regulations as the board 
430.8   deems sufficient.  The district may pay all necessary costs 
430.9   therefor including transportation from the school district funds 
430.10  available. 
430.11     Subd. 2.  [COCURRICULAR ACTIVITIES AUTHORIZATION.] The 
430.12  board shall must take charge of and control all cocurricular 
430.13  school activities of the teachers and children of the public 
430.14  schools in that district held in the school building or school 
430.15  grounds or under the supervision or direction of the school 
430.16  board and to that end.  The board must adopt rules and 
430.17  regulations for the conduct of these cocurricular activities in 
430.18  which the schools of the district or any class or pupils therein 
430.19  may participate.  All money received on account of such 
430.20  activities shall must be turned over to the school district 
430.21  treasurer, who shall keep the same in the general fund, to be 
430.22  disbursed for expenses and salaries connected with the 
430.23  activities, or otherwise, by the board upon properly allowed 
430.24  itemized claims. 
430.25     No cocurricular activity shall be participated in by the 
430.26  Teachers or pupils in the public schools of such district must 
430.27  not participate in cocurricular activities, nor shall the school 
430.28  name or any allied name be used in connection therewith, except 
430.29  by consent and direction of the board. 
430.30     Subd. 2a.  [COCURRICULAR ACTIVITIES.] Cocurricular 
430.31  activities shall mean means school sponsored and directed 
430.32  activities designed to provide opportunities for pupils to 
430.33  participate, on an individual or group basis, in school and 
430.34  public events for the improvement of skills.  Cocurricular 
430.35  activities are not offered for school credit, cannot be counted 
430.36  toward graduation and have one or more of the following 
431.1   characteristics: 
431.2      (a) They are conducted at regular and uniform times during 
431.3   school hours, or at times established by school authorities; 
431.4      (b) Although not offered for credit, they are directed or 
431.5   supervised by instructional staff in a learning environment 
431.6   similar to that found in courses offered for credit; 
431.7      (c) They are partially funded by public moneys for general 
431.8   instructional purposes under direction and control of the board. 
431.9      Subd. 2b.  [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 
431.10  (a) The board may take charge of and control all extracurricular 
431.11  activities of the teachers and children of the public schools in 
431.12  the district.  Extracurricular activities shall mean means all 
431.13  direct and personal services for public school pupils for their 
431.14  enjoyment that are managed and operated under the guidance of an 
431.15  adult or staff member.  
431.16     (b) Extracurricular activities have all of the following 
431.17  characteristics: 
431.18     (1) they are not offered for school credit nor required for 
431.19  graduation; 
431.20     (2) they are generally conducted outside school hours, or 
431.21  if partly during school hours, at times agreed by the 
431.22  participants, and approved by school authorities; 
431.23     (3) the content of the activities is determined primarily 
431.24  by the pupil participants under the guidance of a staff member 
431.25  or other adult. 
431.26     (c) If the board does not take charge of and control 
431.27  extracurricular activities, these activities shall be 
431.28  self-sustaining with all expenses, except direct salary costs 
431.29  and indirect costs of the use of school facilities, met by dues, 
431.30  admissions, or other student fundraising events.  The general 
431.31  fund shall must reflect only those salaries directly related to 
431.32  and readily identified with the activity and paid by public 
431.33  funds.  Other revenues and expenditures for extra curricular 
431.34  activities must be recorded according to the "Manual of 
431.35  Instruction for Uniform Student Activities Accounting for 
431.36  Minnesota School Districts and Area Vocational-Technical 
432.1   Colleges."  Extracurricular activities not under board control 
432.2   must have an annual financial audit and must also be audited 
432.3   annually for compliance with this section. 
432.4      (d) If the board takes charge of and controls 
432.5   extracurricular activities, any or all costs of these activities 
432.6   may be provided from school revenues and all revenues and 
432.7   expenditures for these activities shall be recorded in the same 
432.8   manner as other revenues and expenditures of the district.  
432.9      (e) If the board takes charge of and controls 
432.10  extracurricular activities, no such activity shall be 
432.11  participated in by the teachers or pupils in the district must 
432.12  not participate in such activity, nor shall the school name or 
432.13  any allied name be used in connection therewith, except by 
432.14  consent and direction of the board. 
432.15     Subd. 3.  [INSURANCE.] The board may enter into a contract 
432.16  providing for the payment of cash benefits or the rendering or 
432.17  payment of hospital and medical benefits, or both to school 
432.18  children injured while participating in activities of the 
432.19  school, such.  The contract to entered into by the board may 
432.20  make the payment of such benefits or the rendering thereof the 
432.21  direct and sole obligation of the association or company 
432.22  entering into such contract with the district. 
432.23     If the board deems it advisable, it may authorize employees 
432.24  to collect fees from the pupils enrolled in said school who are 
432.25  to be or are covered by such contract, and to make payment of 
432.26  the premium or other charge for such contract or protection.  
432.27  The payment of such premium or other charge may be made from 
432.28  funds received from the federal government or from the state or 
432.29  any governmental subdivision thereof, or from funds derived by a 
432.30  tax levy or the issuance of bonds. 
432.31     The child's payment of any fees, premium or other charge by 
432.32  such child shall not thereby make the district liable for any 
432.33  injuries incurred from such school activities. 
432.34     The state board of education may purchase medical insurance 
432.35  coverage for the benefit of students of the Minnesota state 
432.36  academy for the deaf or the Minnesota state academy for the 
433.1   blind in the same manner and with the same effect as a school 
433.2   district board may do for its students under this subdivision.  
433.3      Subd. 4.  [INSURANCE LAWS.] The insurance laws of this 
433.4   state shall not apply to nonprofit benefit and relief 
433.5   associations formed by public schools or officers of public 
433.6   schools or the Minnesota state high school league, the 
433.7   privileges of which and applications for membership in which are 
433.8   confined to pupils of the schools, and the benefits and relief 
433.9   to be derived therefrom are limited to pupils injured or 
433.10  disabled from participation in school athletics or any 
433.11  supervised school activity. 
433.12     Sec. 45.  Minnesota Statutes 1996, section 123.39, is 
433.13  amended to read: 
433.14     123.39 [INDEPENDENT SCHOOL DISTRICTS, TRANSPORTATION.] 
433.15     Subdivision 1.  [AUTHORITY TO TRANSPORT PUPILS.] The board 
433.16  may provide for the transportation of pupils to and from school 
433.17  and for any other purpose.  The board may also provide for the 
433.18  transportation of pupils to schools in other districts for 
433.19  grades and departments not maintained in the district, including 
433.20  high school, at the expense of the district, when funds are 
433.21  available therefor and if agreeable to the district to which it 
433.22  is proposed to transport the pupils, for the whole or a part of 
433.23  the school year, as it may deem advisable, and subject to its 
433.24  rules.  In any school district, the board shall must arrange for 
433.25  the attendance of all pupils living two miles or more from the 
433.26  school, except pupils whose transportation privileges have been 
433.27  revoked under section 123.805, subdivision 1, clause (6), or 
433.28  123.7991, paragraph (b), through suitable provision.  The 
433.29  district may provide for the transportation of or through the 
433.30  boarding and rooming of the pupils who may be more economically 
433.31  and conveniently provided for by that means.  The board shall 
433.32  must provide transportation to and from the home of a child with 
433.33  a disability not yet enrolled in kindergarten when special 
433.34  instruction and services under sections 120.17 and 120.1701 are 
433.35  provided in a location other than in the child's home.  When 
433.36  transportation is provided, scheduling of routes, establishment 
434.1   of the location of bus stops, manner and method of 
434.2   transportation, control and discipline of school children and 
434.3   any other matter relating thereto shall must be within the sole 
434.4   discretion, control, and management of the school board.  The 
434.5   district may provide for the transportation of pupils or expend 
434.6   a reasonable amount for room and board of pupils whose 
434.7   attendance at school can more economically and conveniently be 
434.8   provided for by that means or who attend school in a building 
434.9   rented or leased by a district within the confines of an 
434.10  adjacent district. 
434.11     Subd. 2.  [TRANSPORTATION SERVICES CONTRACTS.] The board 
434.12  may contract for the furnishing of authorized transportation 
434.13  under rules established by the commissioner of children, 
434.14  families, and learning, and may purchase gasoline and furnish 
434.15  same to a contract carrier for use in the performance of a 
434.16  contract with the school district for transportation of school 
434.17  children to and from school. 
434.18     Subd. 4.  [INSTRUCTION IN ANOTHER DISTRICT.] The board may 
434.19  provide for the instruction of any resident pupil in another 
434.20  district when inadequate room, distance to school, unfavorable 
434.21  road conditions, or other facts or conditions make attendance in 
434.22  the pupil's own district unreasonably difficult or impractical, 
434.23  in which case such district shall pay to the district so 
434.24  attended the tuition agreed upon or charged, pursuant to section 
434.25  124.18, subdivision 2, and may provide transportation; provided, 
434.26  that such pupil shall continue to be a pupil of the district of 
434.27  residence for the payment of apportionment and other state aids. 
434.28     Subd. 5.  The board may provide for the admission to the 
434.29  schools of the district, of nonresident pupils, and those above 
434.30  school age, and fix the rates of tuition for such pupils. 
434.31     Subd. 6.  [NONRESIDENT PUPILS.] For the purposes of this 
434.32  subdivision, a "nonresident pupil" is a pupil who resides in one 
434.33  district, defined as the "resident district" and attends school 
434.34  in another district, defined as the "nonresident district." 
434.35     A nonresident district may transport a nonresident pupil 
434.36  within its borders.  A nonresident district may not transport a 
435.1   nonresident pupil on a school district owned or contractor 
435.2   operated school bus within the pupil's resident district without 
435.3   the approval of the resident district under section 120.062. 
435.4      The parent or guardian of a nonresident pupil attending a 
435.5   nonresident district under section 120.062 may submit a written 
435.6   request to the resident district asking that the resident 
435.7   district allow the nonresident district to provide 
435.8   transportation for the pupil within the pupil's resident 
435.9   district.  The resident district must approve or disapprove the 
435.10  request, in writing, within 30 days.  The parent or guardian may 
435.11  appeal the refusal of the resident district to the commissioner 
435.12  of children, families, and learning.  The commissioner must act 
435.13  on the appeal within 30 days. 
435.14     Subd. 7.  [TRANSPORTATION TO ANOTHER STATE.] If high school 
435.15  pupils from a district within this state are being transported 
435.16  to a school in another state, the board of the district from 
435.17  which the pupils are being transported may provide free 
435.18  transportation and tuition for any or all of its elementary 
435.19  pupils to such school in another state and be entitled to state 
435.20  aid as provided by law. 
435.21     Subd. 8.  [AUTHORITY TO RENT BUSES.] The board may rent a 
435.22  bus owned by the school district excluding a motor-coach bus to 
435.23  any person for any lawful purpose.  Bus rental shall must not 
435.24  interfere with the transportation of pupils by the district.  A 
435.25  lessee may use and operate the bus without payment of a motor 
435.26  vehicle tax.  The lessee is liable for any claims for injuries 
435.27  and damages arising out of the use and operation of a bus leased 
435.28  from the district.  Except as provided in subdivision 9a, the 
435.29  lessee shall procure insurance at the lessee's expense 
435.30  protecting the board and the district against claims for 
435.31  injuries and damages arising out of the use and operation of the 
435.32  bus. 
435.33     Subd. 8a.  [NONPUPIL TRANSPORTATION; INSURANCE.] 
435.34  Notwithstanding the provisions of section 221.021, any public 
435.35  school district or school bus contractor providing 
435.36  transportation services to a school district on a regular basis 
436.1   in this state may operate school buses, excluding motor coach 
436.2   buses, for the purpose of providing transportation to nonpupils 
436.3   of the school district attending school events, as defined in 
436.4   section 123.38, subdivision 2a or 2b, provided that no carrier 
436.5   having a charter carrier permit has its principal office and 
436.6   place of business or bus garage within 12 miles of the principal 
436.7   office of the school district.  School District owned buses and 
436.8   the operators thereof shall otherwise comply with the provisions 
436.9   of this section and the rules of the state board of education 
436.10  and shall be insured in at least the amounts stated in section 
436.11  466.04, subdivision 1.  In all cases the total cost of providing 
436.12  such services, as determined by sound accounting procedures, 
436.13  shall be paid by charges made against those using the buses. 
436.14     Subd. 8b.  [TRANSPORTATION OF ANY PERSON.] School Districts 
436.15  may use school district owned or contractor operated school 
436.16  buses to provide transportation along regular school bus routes 
436.17  on a space available basis for any person, provided that this.  
436.18  Such use of a bus does must not interfere with the 
436.19  transportation of pupils to and from school or other authorized 
436.20  transportation of pupils.  In all cases, the total additional 
436.21  cost of providing these services, as determined by sound 
436.22  accounting procedures, shall must be paid by charges made 
436.23  against those using these services or some third-party payor.  
436.24  In no case shall the additional cost of this transportation be 
436.25  paid by the school district. 
436.26     The provisions of section 65B.47, subdivision 4, shall be 
436.27  applicable to any person being transported pursuant to this 
436.28  subdivision. 
436.29     Subd. 8c.  [PART-TIME SECONDARY STUDENTS.] School districts 
436.30  may provide bus transportation along regular school bus routes 
436.31  on a space available basis for part-time students enrolled in 
436.32  secondary classes pursuant to section 123.35, subdivisions 8a, 
436.33  8b and 8c, provided that this.  Such use of a bus does must not 
436.34  interfere with the transportation of pupils to and from school 
436.35  or other authorized transportation of pupils.  The total 
436.36  additional cost of providing these services, as determined by 
437.1   sound accounting procedures, shall be paid by charges made 
437.2   against those using the services or some third-party payor.  
437.3      Subd. 8d.  [EARLY CHILDHOOD FAMILY EDUCATION PARTICIPANTS.] 
437.4   School Districts may provide bus transportation along regular 
437.5   school bus routes when space is available for participants in 
437.6   early childhood family education programs and learning readiness 
437.7   programs if these services do not result in an increase in the 
437.8   district's expenditures for transportation.  The costs allocated 
437.9   to these services, as determined by generally accepted 
437.10  accounting principles, shall be considered part of the 
437.11  authorized cost for regular transportation for the purposes of 
437.12  section 124.225. 
437.13     Subd. 8e.  [AREA LEARNING CENTER PUPILS.] School Districts 
437.14  may provide bus transportation along school bus routes 
437.15  established to provide nonregular transportation as defined in 
437.16  section 124.225, subdivision 1, paragraph (e)(2)(ii), when space 
437.17  is available, for pupils attending programs at an area learning 
437.18  center.  The transportation is only permitted between schools 
437.19  and if it does not increase the district's expenditures for 
437.20  transportation.  The cost of these services shall be considered 
437.21  part of the authorized cost for nonregular transportation for 
437.22  the purpose of section 124.225. 
437.23     Subd. 9.  [INSURANCE.] The board may provide for the 
437.24  protection of pupils transported for school purposes or 
437.25  activities in district owned, operated, leased, or controlled 
437.26  motor vehicles against injuries or damages arising out of the 
437.27  operation of these vehicles.  The board may purchase and pay for 
437.28  insurance from any funds available.  An insurance contract 
437.29  covering this risk shall contain a waiver of the defense of 
437.30  governmental immunity.  The payment of any insurance premiums by 
437.31  the district does not in itself make the district liable for any 
437.32  injuries or damages incurred by the transportation. 
437.33     Subd. 9a.  [INSURANCE; INDEMNITY.] If a school board has 
437.34  obtained insurance pursuant to subdivision 9 or section 466.06, 
437.35  it may also obtain and pay for insurance coverage to indemnify a 
437.36  lessee and to protect the board and the district, in any amount 
438.1   not exceeding the limits of coverage provided for the insurance 
438.2   obtained pursuant to subdivision 9 or section 466.06 against 
438.3   claims for injuries and damages arising out of the use and 
438.4   operation of a district-owned bus while it is leased or rented 
438.5   to the lessee pursuant to subdivision 8.  The rental charge 
438.6   shall include the cost of this additional insurance coverage.  
438.7   The procurement of this additional insurance coverage 
438.8   constitutes a waiver of the defense of governmental immunity to 
438.9   the extent of the additional coverage but has no effect on the 
438.10  liability of the board, the school district, or its employees 
438.11  beyond the coverage so provided. 
438.12     Subd. 10.  [INSURANCE; DRIVER TRAINING COURSES.] The board 
438.13  may provide and pay the premiums for the protection for school 
438.14  children, instructors and automobile owners, and any other 
438.15  agency cooperating in providing cars for districts where driver 
438.16  training courses are being offered, against public liability, 
438.17  property damage, collision, fire and theft, arising out of the 
438.18  operation of any vehicle used in the courses.  Nothing herein 
438.19  shall make the district liable for injuries resulting from the 
438.20  actions of such persons. 
438.21     Subd. 11.  [INSURANCE; SCHOOL SAFETY PATROL.] The board may 
438.22  provide and pay the premiums for insurance against injuries 
438.23  resulting to its pupils while assigned to and acting on a school 
438.24  safety patrol, which.  Such insurance may provide for the 
438.25  payment of either cash benefits to such injured pupil or for the 
438.26  payment of hospital and medical benefits to or for such injured 
438.27  pupil, or both.  Nothing herein shall be construed to in any way 
438.28  make the district liable for such injuries. 
438.29     Subd. 12.  [SNOW REMOVAL.] The board may enter into 
438.30  contracts for the removal of snow from roads used for regular 
438.31  bus routes transporting pupils to and from school either within 
438.32  or without outside the district. 
438.33     Subd. 13.  [HANDICAPPED PERSON TRANSPORT TO DEVELOPMENTAL 
438.34  ACHIEVEMENT CENTER.] The board shall must contract with any 
438.35  licensed developmental achievement center attended by a resident 
438.36  handicapped person who fulfills the eligibility requirements of 
439.1   section 252.23, subdivision 1, to transport the resident 
439.2   handicapped person to the developmental achievement center in 
439.3   return for payment by the center of the cost of the 
439.4   transportation, if transportation by the board is in the best 
439.5   interest of the handicapped person and is not unreasonably 
439.6   burdensome to the district and if a less expensive, reasonable, 
439.7   alternative means of transporting the handicapped person does 
439.8   not exist.  If the board and the developmental achievement 
439.9   center are unable to agree to a contract, either the board or 
439.10  the center may appeal to the commissioner of children, families, 
439.11  and learning to resolve the conflict.  All decisions of the 
439.12  commissioner shall be final and binding upon the board and the 
439.13  center. 
439.14     Subd. 14.  [CUSTODIAL PARENT TRANSPORTATION.] The board may 
439.15  provide transportation for a pupil who is a custodial parent and 
439.16  that pupil's child between the pupil's home and a child care 
439.17  provider and between the provider and the school.  The 
439.18  board shall must establish criteria for transportation it 
439.19  provides according to this subdivision.  
439.20     Subd. 15.  [PUPIL TRANSPORT ON STAFF DEVELOPMENT DAYS.] A 
439.21  school district may provide bus transportation between home and 
439.22  school for pupils on days devoted to parent-teacher conferences, 
439.23  teacher's workshops, or other staff development opportunities.  
439.24  If approved by the commissioner as part of a program of 
439.25  educational improvement, the cost of providing this 
439.26  transportation, as determined by generally accepted accounting 
439.27  principles, must be considered part of the authorized cost for 
439.28  regular transportation for the purposes of section 124.225.  The 
439.29  commissioner shall approve inclusion of these costs in the 
439.30  regular transportation category only if the total number of 
439.31  instructional hours in the school year divided by the total 
439.32  number of days for which transportation is provided equals or 
439.33  exceeds the number of instructional hours per day prescribed in 
439.34  the rules of the state board.  
439.35     Subd. 16.  [POST-SECONDARY ENROLLMENT OPTIONS PUPILS.] 
439.36  School Districts may provide bus transportation along school bus 
440.1   routes established to provide nonregular transportation as 
440.2   defined in section 124.225, subdivision 1, paragraph (c), clause 
440.3   (2), when space is available, for pupils attending programs at a 
440.4   post-secondary institution under the post-secondary enrollment 
440.5   options program.  The transportation is permitted only if it 
440.6   does not increase the district's expenditures for 
440.7   transportation.  Fees collected for this service under section 
440.8   120.73, subdivision 1, paragraph (m), shall be subtracted from 
440.9   the authorized cost for nonregular transportation for the 
440.10  purpose of section 124.225. 
440.11     Sec. 46.  [123.43] [SCHOOL CALENDAR.] 
440.12     Except for learning programs during summer, flexible 
440.13  learning year programs authorized under sections 120.59 to 
440.14  120.67, and learning year programs under section 121.585, a 
440.15  district must not commence an elementary or secondary school 
440.16  year prior to Labor Day.  Days which are devoted to teachers' 
440.17  workshops may be held before Labor Day.  Districts that enter 
440.18  into cooperative agreements are encouraged to adopt similar 
440.19  school calendars. 
440.20     Sec. 47.  [123.44] [CONDUCT OF SCHOOL ON CERTAIN HOLIDAYS.] 
440.21     The governing body of any district may contract with any of 
440.22  the teachers of the district for the conduct of schools, and may 
440.23  conduct schools, on either, or any, of the following holidays, 
440.24  provided that a clause to this effect is inserted in the 
440.25  teacher's contract:  Martin Luther King's birthday, Lincoln's 
440.26  and Washington's birthdays, Columbus Day and Veterans' Day.  On 
440.27  Martin Luther King's birthday, Washington's birthday, Lincoln's 
440.28  birthday, and Veterans' Day at least one hour of the school 
440.29  program must be devoted to a patriotic observance of the day. 
440.30     Sec. 48.  Minnesota Statutes 1996, section 123.63, is 
440.31  amended to read: 
440.32     123.63 [EMINENT DOMAIN.] 
440.33     In any municipal corporation or district in this state 
440.34  where the governing body or board has the right, power, and 
440.35  authority to purchase sites for school buildings without 
440.36  authorization by the voters at a regular or special meeting or 
441.1   election called for that purpose, such governing body or school 
441.2   board shall have the right, power, and authority to condemn 
441.3   lands under the right of eminent domain for sites and grounds 
441.4   for public school buildings and.  The governing body or board 
441.5   shall exercise such power and authority shall be exercised under 
441.6   and pursuant to the terms and provisions of chapter 117.  Any 
441.7   such corporation or school district shall have the right, upon 
441.8   the filing of the award of the commissioners provided for in 
441.9   chapter 117, and upon giving the notice therein required of the 
441.10  filing of such award, to enter upon and appropriate the lands so 
441.11  condemned without giving of any bond, but.  In case of such 
441.12  entry and appropriation, such corporation or school district 
441.13  shall be bound absolutely to pay all damages awarded, either by 
441.14  the commissioners or by the court upon appeal therefrom, 
441.15  together with all costs and expenses adjudged against it therein 
441.16  within the time specified in chapter 117.  In case any such 
441.17  corporation or school district shall appeal from the award of 
441.18  commissioners appointed pursuant to any such condemnation 
441.19  proceedings, such corporation or school district shall not be 
441.20  required to give or file any appeal bond therein.  
441.21     Sec. 49.  Minnesota Statutes 1996, section 123.64, is 
441.22  amended to read: 
441.23     123.64 [AGRICULTURAL EDUCATION.] 
441.24     The board of In any district in which instruction in 
441.25  agriculture is afforded, the board is authorized and empowered 
441.26  to purchase or otherwise acquire by condemnation proceedings as 
441.27  provided for acquiring schoolhouse sites in the name and in 
441.28  behalf of such district, a suitable tract of land either within 
441.29  or without outside of the limits of such district to be used for 
441.30  the purpose of instruction, experimentation, and demonstration 
441.31  in agriculture.  The provisions of this section shall apply as 
441.32  well to districts organized under special acts as under the 
441.33  general laws, notwithstanding any provisions or restrictions in 
441.34  the laws under which the same districts are organized.  
441.35     Sec. 50.  [123.65] [NATIONAL FOREST LAND FUNDS, HANDLING 
441.36  AND DISPOSITION.] 
442.1      A county board may place money received by such county from 
442.2   the federal government for and on account of any national forest 
442.3   lands situated in the county into a special fund to be disbursed 
442.4   and paid over to any district maintaining and operating any 
442.5   school wholly or partly within an area constituting a part of 
442.6   any auxiliary or state forest.  The board must adopt a 
442.7   resolution to take such action.  The resolution must specify the 
442.8   terms and conditions under which the money shall be paid over 
442.9   and disbursed to any district.  
442.10     Sec. 51.  Minnesota Statutes 1996, section 123.66, is 
442.11  amended to read: 
442.12     123.66 [RECORDS AS EVIDENCE.] 
442.13     The records of all districts and boards and all transcripts 
442.14  thereof, or any part thereof, certified by the clerk or other 
442.15  officer having custody thereof of the records or transcripts, 
442.16  shall be prima facie evidence of the facts therein stated and in 
442.17  the records or transcripts.  All records, books, and papers of 
442.18  such district or board shall be subject to the inspection of any 
442.19  voter of the district. 
442.20     Sec. 52.  Minnesota Statutes 1996, section 123.75, 
442.21  subdivision 2, is amended to read: 
442.22     Subd. 2.  [AUTHORITY.] Each school district may develop a 
442.23  fingerprinting program for pupils and children who reside in the 
442.24  district.  The principal or chief administrative officer of a 
442.25  nonpublic school may develop a fingerprinting program for pupils 
442.26  of the school.  If developed, the program must be developed in 
442.27  conjunction with law enforcement agencies having jurisdiction 
442.28  within the school district or the place where the nonpublic 
442.29  school is located.  The law enforcement agencies must cooperate 
442.30  fully with the school district or the nonpublic school in the 
442.31  development of its fingerprinting program. 
442.32     Sec. 53.  Minnesota Statutes 1996, section 123.75, 
442.33  subdivision 3, is amended to read: 
442.34     Subd. 3.  [LIMITATIONS AND PROCEDURES.] If developed, the 
442.35  fingerprinting program may be developed only for the purpose of 
442.36  assisting in the location and identification of missing 
443.1   children, and must be operated according to the following 
443.2   procedures: 
443.3      (a) No child may be required to participate in the program. 
443.4      (b) Before a child may participate in the program, the 
443.5   child's parents, guardian, legal custodian, or other person 
443.6   responsible for the child must authorize the child's 
443.7   participation by signing a form developed by the school district 
443.8   or the principal or chief administrative officer of the 
443.9   nonpublic school. 
443.10     (c) Fingerprinting of children must be done by law 
443.11  enforcement personnel on fingerprint cards provided to the 
443.12  school district or nonpublic school by the commissioner of 
443.13  public safety or on fingerprint cards acquired elsewhere. 
443.14     (d) The school must give the fingerprint card to the 
443.15  child's parents, guardian, legal custodian, or other person 
443.16  responsible for the child.  No copy of the fingerprint card may 
443.17  be retained by the law enforcement agency, school, or school 
443.18  district. 
443.19     (e) The child's name, sex, hair and eye color, height, 
443.20  weight, and date and place of birth must be written on the 
443.21  fingerprint card. 
443.22     School Districts and nonpublic schools that develop 
443.23  fingerprinting programs under this section shall offer them on a 
443.24  periodic basis, and shall notify parents, guardians, legal 
443.25  custodians, and residents of the district or communities served 
443.26  by the school of the program and its purpose.  Notification may 
443.27  be made by means of memoranda, letters, newspaper articles, or 
443.28  other reasonable means. 
443.29     Sec. 54.  Minnesota Statutes 1996, section 123.75, 
443.30  subdivision 5, is amended to read: 
443.31     Subd. 5.  [OTHER FINGERPRINTING PROGRAMS UNAFFECTED.] This 
443.32  section does not apply to fingerprinting programs for children 
443.33  that are provided by private organizations other than nonpublic 
443.34  schools, or governmental entities other than school districts. 
443.35     Sec. 55.  Minnesota Statutes 1996, section 123.751, is 
443.36  amended to read: 
444.1      123.751 [FLAG SCHOOL RECORDS OF MISSING CHILDREN.] 
444.2      Subdivision 1.  [FLAG RECORD UPON CERTAIN NOTIFICATION.] 
444.3   A school district shall must flag the record of a pupil who is 
444.4   currently or was previously enrolled in the district if a law 
444.5   enforcement agency notifies the district of the pupil's 
444.6   disappearance.  The flag must be made so that, if a copy of or 
444.7   information regarding the pupil's record is requested, the 
444.8   district is aware that the record is that of a missing pupil. 
444.9      Subd. 2.  [DISTRICT NOTIFICATION WHEN RECORDS ARE 
444.10  REQUESTED.] When the district provides a copy of the pupil's 
444.11  record or other information concerning the pupil whose record is 
444.12  flagged, the district shall must notify the law enforcement 
444.13  agency that notified the district of the pupil's disappearance 
444.14  of every inquiry concerning the record.  The district shall must 
444.15  also provide a copy to the law enforcement agency of a written 
444.16  request for information concerning the record. 
444.17     Subd. 3.  [RECORDS UPON SCHOOL DISTRICT TRANSFER.] When a 
444.18  pupil transfers from one district to another, the receiving 
444.19  district shall attempt to obtain, within 30 days of the pupil's 
444.20  enrollment, the pupil's record from the district from which the 
444.21  pupil has transferred.  If the pupil's parent, custodian, or 
444.22  guardian provides a copy of the pupil's record from the district 
444.23  from which the pupil has transferred, the receiving district 
444.24  shall must request, within 30 days of the pupil's enrollment, 
444.25  written verification of the pupil's record by contacting the 
444.26  district named on the transferring pupil's record.  Information 
444.27  received by a school district indicating that the transferring 
444.28  pupil is a missing child must be reported by the district to the 
444.29  department of public safety. 
444.30     Subd. 4.  [DATA DISCLOSURE.] Data in this section may be 
444.31  disclosed according to section 13.32, subdivision 3, clause (d). 
444.32     Sec. 56.  [123.96] [REVENUE; REPORTING.] 
444.33     Subdivision 1.  [SCOPE.] District revenues must be 
444.34  recognized and reported on the district books of account in 
444.35  accordance with this section. 
444.36     Subd. 2.  [APPLICABILITY TO PERIOD AND FUND.] Except as 
445.1   provided in this section, revenues must be recorded in a manner 
445.2   which clearly indicates that they are applicable to a specific 
445.3   accounting period and fund. 
445.4      Subd. 3.  [RECEIVABLE.] Receivables must be recorded in a 
445.5   manner which clearly reflects the amounts of money due to a 
445.6   particular fund from public and private sources at the date of 
445.7   each accounting statement. 
445.8      Subd. 4.  [RECOGNIZED AS RECEIVABLE.] All current levies of 
445.9   local taxes, including portions assumed by the state, shall be 
445.10  recognized as receivable at the beginning of the calendar year 
445.11  during which collection normally takes place.  
445.12     Subd. 5.  [LEVY RECOGNITION.] (a) "School district tax 
445.13  settlement revenue" means the current, delinquent, and 
445.14  manufactured home property tax receipts collected by the county 
445.15  and distributed to the school district, including distributions 
445.16  made pursuant to section 279.37, subdivision 7, and excluding 
445.17  the amount levied pursuant to section 124.914, subdivision 1. 
445.18     (b) In June of each year, the school district must 
445.19  recognize as revenue, in the fund for which the levy was made, 
445.20  the lesser of:  
445.21     (1) the May, June, and July school district tax settlement 
445.22  revenue received in that calendar year; or 
445.23     (2) the sum of the state aids and credits enumerated in 
445.24  section 124.155, subdivision 2, which are for the fiscal year 
445.25  payable in that fiscal year plus an amount equal to the levy 
445.26  recognized as revenue in June of the prior year plus 31 percent 
445.27  for fiscal year 1996 and thereafter of the amount of the levy 
445.28  certified in the prior calendar year according to section 
445.29  124A.03, subdivision 2, plus or minus auditor's adjustments, not 
445.30  including levy portions that are assumed by the state; or 
445.31     (3) 18.1 percent for fiscal year 1996, the percent 
445.32  determined under Laws 1996, chapter 461, section 3, for fiscal 
445.33  year 1997 and that same percent thereafter of the amount of the 
445.34  levy certified in the prior calendar year, plus or minus 
445.35  auditor's adjustments, not including levy portions that are 
445.36  assumed by the state, which remains after subtracting, by fund, 
446.1   the amounts levied for the following purposes:  
446.2      (i) reducing or eliminating projected deficits in the 
446.3   reserved fund balance accounts for unemployment insurance and 
446.4   bus purchases; 
446.5      (ii) statutory operating debt pursuant to section 124.914, 
446.6   subdivision 1; 
446.7      (iii) retirement and severance pay pursuant to sections 
446.8   122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 
446.9   124.912, subdivision 1, and 124.916, subdivision 3, and Laws 
446.10  1975, chapter 261, section 4; 
446.11     (iv) amounts levied for bonds issued and interest thereon, 
446.12  amounts levied for debt service loans and capital loans, amounts 
446.13  levied for down payments under section 124.82, subdivision 3; 
446.14  and 
446.15     (v) amounts levied under section 124.755.  
446.16     Notwithstanding the foregoing, the levy recognition 
446.17  percentage for the referendum levy certified according to 
446.18  section 124A.03, subdivision 2, is 31 percent. 
446.19     (c) In July of each year, the district shall recognize as 
446.20  revenue that portion of the school district tax settlement 
446.21  revenue received in that calendar year and not recognized as 
446.22  revenue for the previous fiscal year pursuant to clause (b).  
446.23     (d) All other school district tax settlement revenue must 
446.24  be recognized as revenue in the fiscal year of the settlement. 
446.25  Portions of the school district levy assumed by the state, 
446.26  including prior year adjustments and the amount to fund the 
446.27  school portion of the reimbursement made pursuant to section 
446.28  273.425, shall be recognized as revenue in the fiscal year 
446.29  beginning in the calendar year for which the levy is payable. 
446.30     Subd. 6.  [CHANGE IN LEVY RECOGNITION PERCENT.] (a) Money 
446.31  appropriated under section 16A.152, subdivision 2, must be used 
446.32  to reduce the levy recognition percent specified in subdivision 
446.33  5, clauses (b)(2) and (b)(3), for taxes payable in the same 
446.34  calendar year the appropriation is made.  
446.35     (b) The levy recognition percent shall equal the result of 
446.36  the following computation:  the current levy recognition 
447.1   percent, times the ratio of 
447.2      (1) the statewide total amount of levy recognized in June 
447.3   of the year in which the taxes are payable pursuant to 
447.4   subdivision 5, clause (b), excluding those levies that are 
447.5   shifted for revenue recognition but are not included in the 
447.6   computation of the adjustment to aids under section 124.155, 
447.7   subdivision 1, reduced by the difference between the amount of 
447.8   money appropriated under section 16A.152, subdivision 2, and the 
447.9   amount required for the adjustment payment under clause (d), to 
447.10     (2) the statewide total amount of the levy recognized in 
447.11  June of the year in which the taxes are payable pursuant to 
447.12  subdivision 5, clause (b), excluding those levies that are 
447.13  shifted for revenue recognition but are not included in the 
447.14  computation of the adjustment to aids under section 124.155, 
447.15  subdivision 1.  
447.16     The result must be rounded up to the nearest one-tenth of a 
447.17  percent.  However, in no case shall the levy recognition percent 
447.18  be reduced below zero or increased above the current levy 
447.19  recognition percent.  
447.20     (c) The commissioner of finance shall certify to the 
447.21  commissioner of children, families, and learning the amount 
447.22  available to reduce the levy recognition percent computed under 
447.23  this subdivision by January 5 of each year.  The commissioner of 
447.24  children, families, and learning shall notify districts of a 
447.25  change in the levy recognition percent by January 15 of the same 
447.26  month. 
447.27     (d) When the levy recognition percent is increased or 
447.28  decreased as provided in this subdivision, a special aid 
447.29  adjustment shall be made to each district with an operating 
447.30  referendum levy:  
447.31     (i) When the levy recognition percent is increased from the 
447.32  prior fiscal year, the commissioner of children, families, and 
447.33  learning shall calculate the difference between (1) the amount 
447.34  of the levy under section 124A.03, that is recognized as revenue 
447.35  for the current fiscal year according to subdivision 5; and (2) 
447.36  the amount of the levy, under section 124A.03, that would have 
448.1   been recognized as revenue for the current fiscal year had the 
448.2   percentage according to subdivision 5, not been increased.  The 
448.3   commissioner shall reduce other aids due the district by the 
448.4   amount of the difference.  This aid reduction shall be in 
448.5   addition to the aid reduction required because of the increase 
448.6   pursuant to this subdivision of the levy recognition percent.  
448.7      (ii) When the levy recognition percent is reduced from the 
448.8   prior fiscal year, a special adjustment payment must be made to 
448.9   each district with an operating referendum levy that received an 
448.10  aid reduction when the levy recognition percent was last 
448.11  increased.  The special adjustment payment must be in addition 
448.12  to the additional payments required because of the reduction 
448.13  pursuant to this subdivision of the levy recognition percent.  
448.14  The amount of the special adjustment payment shall be computed 
448.15  by the commissioner of children, families, and learning such 
448.16  that any remaining portion of the aid reduction these districts 
448.17  received that has not been repaid is repaid on a proportionate 
448.18  basis as the levy recognition percent is reduced from 50 percent 
448.19  to 31 percent.  The special adjustment payment must be included 
448.20  in the state aid payments to districts according to the schedule 
448.21  specified in section 124.195, subdivision 3.  
448.22     (e) The commissioner of finance shall transfer from the 
448.23  general fund to the education aids appropriations specified by 
448.24  the commissioner of children, families, and learning, the 
448.25  amounts needed to finance the additional payments required 
448.26  because of the reduction pursuant to this subdivision of the 
448.27  levy recognition percent.  Payments to a district of additional 
448.28  state aids resulting from a reduction in the levy recognition 
448.29  percent must be included in the cash metering of payments made 
448.30  according to section 124.195 after January 15, and must be paid 
448.31  in a manner consistent with the percent specified in that 
448.32  section. 
448.33     Subd. 7.  [AID PAYMENT PERCENTAGE INCREASE.] (a) Subject to 
448.34  the provisions of section 16A.152, subdivision 2, if the most 
448.35  recent forecast of general fund revenues and expenditures 
448.36  prepared by the commissioner of finance indicates a projected 
449.1   unobligated general fund balance at the close of the biennium, 
449.2   the fund balance must be used to increase the aid payment 
449.3   percentage specified in section 124.195, subdivisions 7 and 10.  
449.4   The increased aid payment percentage shall be rounded to the 
449.5   nearest whole percent above 85 percent but shall not exceed 90 
449.6   percent. 
449.7      (b) The commissioner of finance shall certify to the 
449.8   commissioner of children, families, and learning the amount 
449.9   available for computing the aid payment percentage.  The 
449.10  commissioner of children, families, and learning shall determine 
449.11  the method for increasing the aid payment percentage.  The 
449.12  commissioner of finance shall transfer from the general fund to 
449.13  the education aids, grants, and credits appropriations specified 
449.14  by the commissioner of children, families, and learning the 
449.15  amounts needed to make the additional payments required by this 
449.16  subdivision.  The additional payments must be included in the 
449.17  cash metering of payments made according to section 124.195.  
449.18  The commissioner of children, families, and learning shall 
449.19  notify districts of an increase in the percentage payment of 
449.20  current year school aids under this subdivision within 30 days.  
449.21     Subd. 8.  [AIDS OR GRANTS AS RECEIVABLES.] State aids or 
449.22  grants, that are paid as a matching of an expenditure, shall be 
449.23  recognized as revenues and recorded as receivables in the fiscal 
449.24  year during which the eligible expenditure is recognized. 
449.25     Subd. 9.  [OTHER REVENUES.] Other revenues not specified in 
449.26  this section shall be recognized as revenue and shall be 
449.27  recorded in the fiscal year earned. 
449.28     Subd. 10.  [DEVIATIONS FOOTNOTED.] Deviations from the 
449.29  principles set forth in this section must be evaluated and 
449.30  explained in footnotes to audited financial statements. 
449.31     Subd. 11.  [APPLICABLE FISCAL YEAR.] The commissioner shall 
449.32  specify the fiscal year or years to which the revenue from any 
449.33  aid or tax levy is applicable if Minnesota Statutes do not so 
449.34  specify. 
449.35     Sec. 57.  [123.961] [EXPENDITURES; REPORTING.] 
449.36     Subdivision 1.  [RECOGNITION.] District expenditures must 
450.1   be recognized and reported on the district books of account in 
450.2   accordance with this section. 
450.3      Fiscal year-end recognition of expenditures and the related 
450.4   offsetting liabilities must be recorded in each fund in 
450.5   accordance with the uniform financial accounting and reporting 
450.6   standards for Minnesota school districts.  Encumbrances 
450.7   outstanding at the end of the fiscal year do not constitute 
450.8   expenditures or liabilities.  
450.9      Deviations from the principles set forth in this 
450.10  subdivision must be evaluated and explained in footnotes to 
450.11  audited financial statements. 
450.12     Subd. 2.  [ACCOUNTING.] Expenditures for any legal purpose 
450.13  of the district not accounted for elsewhere must be accounted 
450.14  for in the general fund. 
450.15     Sec. 58.  [123.962] [ACCOUNTING, BUDGETING AND REPORTING 
450.16  REQUIREMENT.] 
450.17     Subdivision 1.  [UNIFORM FINANCIAL ACCOUNTING AND REPORTING 
450.18  STANDARDS.] Each Minnesota school district must adopt the 
450.19  uniform financial accounting and reporting standards for 
450.20  Minnesota school districts provided for in guidelines adopted by 
450.21  the department.  
450.22     Subd. 2.  [AUDITED FINANCIAL STATEMENT.] Each district must 
450.23  submit to the commissioner by August 15 of each year an 
450.24  unaudited financial statement for the preceding fiscal year.  
450.25  This statement must be submitted on forms prescribed by the 
450.26  commissioner. 
450.27     Subd. 3.  [STATEMENT FOR COMPARISON AND CORRECTION.] By 
450.28  December 31 of the calendar year of the submission of the 
450.29  unaudited financial statement, the district must provide to the 
450.30  commissioner and state auditor an audited financial statement 
450.31  prepared in a form which will allow comparison with and 
450.32  correction of material differences in the unaudited statement.  
450.33  The audited financial statement must also provide a statement of 
450.34  assurance pertaining to uniform financial accounting and 
450.35  reporting standards compliance. 
450.36     Subd. 4.  [BUDGET APPROVAL.] Prior to July 1 of each year, 
451.1   the board of each district must approve and adopt its revenue 
451.2   and expenditure budgets for the next school year.  The budget 
451.3   document so adopted must be considered an 
451.4   expenditure-authorizing or appropriations document.  No funds 
451.5   shall be expended by any board or district for any purpose in 
451.6   any school year prior to the adoption of the budget document 
451.7   which authorizes that expenditure, or prior to an amendment to 
451.8   the budget document by the board to authorize the expenditure.  
451.9   Expenditures of funds in violation of this subdivision are 
451.10  considered unlawful expenditures. 
451.11     Subd. 5.  [JOINT POWERS AGREEMENTS; SC'S, EDUCATION 
451.12  DISTRICTS.] All governmental units formed by joint powers 
451.13  agreements entered into by districts pursuant to section 120.17, 
451.14  120.1701, 123.351, 471.59, or any other law and all service 
451.15  cooperatives and education districts are subject to the 
451.16  provisions of this section. 
451.17     Subd. 6.  [BENEFITS.] A district providing early retirement 
451.18  incentive payments under section 125.611, severance pay under 
451.19  section 465.72, or health insurance benefits to retired 
451.20  employees under section 471.61, must account for the payments 
451.21  according to uniform financial accounting and reporting 
451.22  standards.  
451.23     Sec. 59.  [123.963] [CASH FLOW; SCHOOL DISTRICT REVENUES; 
451.24  BORROWING FOR CURRENT OPERATING COSTS; CAPITAL EXPENDITURE 
451.25  DEFICITS.] 
451.26     Subdivision 1.  [STATE AIDS PAYMENT.] The commissioner of 
451.27  finance shall remit all payments of state aids to districts in 
451.28  conformance with the dates provided by law or, when not so 
451.29  provided, with a schedule of aid payments to be established by 
451.30  the commissioner of children, families, and learning in 
451.31  consultation with other affected state agencies. 
451.32     Subd. 2.  [TAXES.] The auditors or finance officers of 
451.33  Minnesota counties shall remit all payments of taxes to the 
451.34  districts in conformance with the provisions of section 276.11.  
451.35  Districts which have need for tax remittance advances may secure 
451.36  them from the counties by making formal requests in conformance 
452.1   with section 276.11. 
452.2      Subd. 3.  [TAX AND AID ANTICIPATION CERTIFICATES.] 
452.3   Minnesota school districts may issue tax and aid anticipation 
452.4   certificates in conformance with the provisions of sections 
452.5   124.71 to 124.76, with the additional provision that the 
452.6   proceeds of such borrowing or any other method of borrowing 
452.7   shall be recorded as liabilities of funds for which the taxes 
452.8   were levied, or for which the aids are receivable.  Nothing in 
452.9   this subdivision provides authority for borrowing against the 
452.10  tax levies and aids of one district fund for the purpose of 
452.11  increasing the available cash balance of another fund. 
452.12     Subd. 4.  [BORROWING FOR OUTSTANDING BONDS.] Unless 
452.13  otherwise provided by law, a district must not, for the purpose 
452.14  of increasing the available cash balance of another fund, borrow 
452.15  or transfer funds from the building construction fund, debt 
452.16  redemption fund, trust and agency fund, or from any sinking fund 
452.17  for outstanding bonds issued for any purpose.  However, if the 
452.18  contemplated use for which funds were originally placed in the 
452.19  building construction fund or a sinking fund is afterwards 
452.20  abandoned or if a balance remains after the use is accomplished, 
452.21  a district may devote these funds as provided in section 
452.22  475.65.  For the purpose of insuring fund integrity, on 
452.23  determining that a district is in violation of this subdivision 
452.24  or section 121.904, the commissioner shall require that such 
452.25  district maintain separate bank accounts for building 
452.26  construction funds, debt redemption funds, trust and agency 
452.27  funds, and sinking funds for outstanding bonds.  Nothing in this 
452.28  subdivision shall be construed to prohibit the use of common 
452.29  bank accounts for other funds unless prohibited by law. 
452.30     Subd. 5.  [DEFICIT FOR CAPITAL PROJECTS.] Upon approval by 
452.31  the commissioner, a district may incur a deficit in the reserve 
452.32  for operating capital account for a period not to exceed three 
452.33  years to provide money for capital projects.  The commissioner 
452.34  shall approve a description of the project and a financial plan 
452.35  to recover the deficit prior to the initiation of the project.  
452.36     Sec. 60.  [123.964] [PERMANENT FUND TRANSFERS.] 
453.1      Subdivision 1.  [LIMITATIONS.] Except as provided in this 
453.2   subdivision, sections 121.9121, 123.36, 124.243, 475.61, and 
453.3   475.65, a district may not permanently transfer money from (1) 
453.4   an operating fund to a nonoperating fund; (2) a nonoperating 
453.5   fund to another nonoperating fund; or (3) a nonoperating fund to 
453.6   an operating fund.  Permanent transfers may be made from any 
453.7   fund to any other fund to correct for prior fiscal years' errors 
453.8   discovered after the books have been closed for that year.  
453.9   Permanent transfers may be made from the general fund to any 
453.10  other operating funds according to section 123.7045 or if the 
453.11  resources of the other fund are not adequate to finance approved 
453.12  expenditures from that other fund.  Permanent transfers may also 
453.13  be made from the general fund to eliminate deficits in another 
453.14  fund when that other fund is being discontinued.  When a 
453.15  district discontinues operation of a district-owned bus fleet or 
453.16  a substantial portion of a fleet, the balance shall cancel to 
453.17  the district's general fund. 
453.18     Subd. 2.  [TECHNICAL COLLEGES.] Money must not be 
453.19  transferred from the post-secondary general fund to any other 
453.20  operating or nonoperating fund.  
453.21     Subd. 3.  [TRA AND FICA TRANSFER.] (a) Notwithstanding 
453.22  subdivision 1, a district may transfer money from the general 
453.23  fund to the community service fund for the employer 
453.24  contributions for teacher retirement and FICA for employees who 
453.25  are members of a teacher retirement association and who are paid 
453.26  from the community service fund.  
453.27     (b) A district must not transfer money under paragraph (a) 
453.28  for employees who are paid with money other than normal 
453.29  operating funds, as defined in section 354.05, subdivision 27.  
453.30     Subd. 4.  [DEFINITION.] As used in this section, "operating 
453.31  fund" and "nonoperating fund" have the meanings specified in the 
453.32  uniform financial accounting and reporting standards for 
453.33  Minnesota school districts.  Any transfer for a period in excess 
453.34  of one year is deemed to be a permanent transfer. 
453.35     Subd. 5.  [DEFICITS; EXCEPTION.] For the purposes of this 
453.36  section, a permanent transfer includes creating a deficit in a 
454.1   nonoperating fund for a period past the end of the current 
454.2   fiscal year which is covered by moneys in an operating fund.  
454.3   However, a deficit in the capital expenditure fund pursuant to 
454.4   section 121.911, subdivision 5, does not constitute a permanent 
454.5   transfer.  
454.6      Subd. 6.  [ACCOUNT TRANSFER FOR STATUTORY OPERATING DEBT.] 
454.7   On June 30 of each year, a district may make a permanent 
454.8   transfer from the general fund account entitled "undesignated 
454.9   fund balance since statutory operating debt" to the account 
454.10  entitled "reserved fund balance reserve account for purposes of 
454.11  statutory operating debt reduction."  The amount of the transfer 
454.12  is limited to the lesser of (a) the net undesignated operating 
454.13  fund balance, or (b) the sum of the remaining statutory 
454.14  operating debt levies authorized for all future years according 
454.15  to section 124.914, subdivision 1.  If the net undesignated 
454.16  operating fund balance is less than zero, the district may not 
454.17  make a transfer.  
454.18     Subd. 7.  [ACCOUNT TRANSFER FOR CERTAIN SEVERANCE PAY.] A 
454.19  district may maintain in a designated for certain severance pay 
454.20  account not more than 50 percent of the amount necessary to meet 
454.21  the obligations for the portion of severance pay that 
454.22  constitutes compensation for accumulated sick leave to be used 
454.23  for payment of premiums for group insurance provided for former 
454.24  employees by the district.  The amount necessary must be 
454.25  calculated according to standards established by the advisory 
454.26  council on uniform financial accounting and reporting standards. 
454.27     Subd. 8.  [ACCOUNT TRANSFER FOR REORGANIZING DISTRICTS.] A 
454.28  district that has reorganized according to section 122.22, 
454.29  122.23, or sections 122.241 to 122.248, or has conducted a 
454.30  successful referendum on the question of combination under 
454.31  section 122.243, subdivision 2, or consolidation under section 
454.32  122.23, subdivision 13, or has been assigned an identification 
454.33  number by the commissioner under section 122.23, subdivision 14, 
454.34  may make permanent transfers between any of the funds in the 
454.35  newly created or enlarged district with the exception of the 
454.36  debt redemption fund, food service fund, and health and safety 
455.1   account of the capital expenditure fund.  Fund transfers under 
455.2   this section may be made for up to one year prior to the 
455.3   effective date of combination or consolidation and during the 
455.4   year following the effective date of reorganization. 
455.5      Subd. 9.  [UNEMPLOYMENT RESERVE BALANCE.] The reserved fund 
455.6   balance for unemployment insurance as of June 30 of each year 
455.7   may not exceed $10 times the number of pupil units for that 
455.8   year.  The department must reduce the levy certified by the 
455.9   district, according to section 124.912, subdivision 1, the 
455.10  following year for obligations under section 268.06, subdivision 
455.11  25, by the amount of the excess. 
455.12     Sec. 61.  [123.9641] [EXCEPTIONS FOR PERMANENT FUND 
455.13  TRANSFERS.] 
455.14     Subdivision 1.  [COMMISSIONER'S AUTHORIZATION.] The 
455.15  commissioner may authorize a board to transfer money from any 
455.16  fund or account other than the debt redemption fund to another 
455.17  fund or account according to this section. 
455.18     Subd. 2.  [APPLICATION.] A board requesting authority to 
455.19  transfer money must apply to the commissioner and provide 
455.20  information requested.  The application must indicate the law or 
455.21  rule prohibiting the desired transfer.  The application must be 
455.22  signed by the superintendent and approved by the school board. 
455.23     Subd. 3.  [APPROVAL STANDARD.] The commissioner may approve 
455.24  a request only when an event has occurred in a district that 
455.25  could not have been foreseen by the district.  The event must 
455.26  relate directly to the fund or account involved and to the 
455.27  amount to be transferred. 
455.28     Sec. 62.  [123.965] [STATUTORY OPERATING DEBT.] 
455.29     Subdivision 1.  [OPERATING DEBT.] The "operating debt" of a 
455.30  school district means the net negative undesignated fund balance 
455.31  in all school district funds, other than capital expenditure, 
455.32  building construction, debt service, and trust and agency, 
455.33  calculated as of June 30 of each year in accordance with the 
455.34  uniform financial accounting and reporting standards for 
455.35  Minnesota school districts. 
455.36     Subd. 2.  [STATUTORY OPERATING DEBT.] If the amount of the 
456.1   operating debt is more than 2-1/2 percent of the most recent 
456.2   fiscal year's expenditure amount for the funds considered under 
456.3   subdivision 1, the net negative undesignated fund balance is 
456.4   defined as "statutory operating debt" for the purposes of this 
456.5   section and sections 121.917 and 124.914, subdivision 1. 
456.6      Subd. 3.  [DEBT VERIFICATION.] The commissioner shall 
456.7   establish a uniform auditing or other verification procedure for 
456.8   districts to determine whether a statutory operating debt exists 
456.9   in any Minnesota school district as of June 30, 1977.  This 
456.10  procedure must identify all interfund transfers made during 
456.11  fiscal year 1977 from a fund included in computing statutory 
456.12  operating debt to a fund not included in computing statutory 
456.13  operating debt.  The standards for this uniform auditing or 
456.14  verification procedure must be promulgated by the state board 
456.15  pursuant to chapter 14.  If a district applies to the 
456.16  commissioner for a statutory operating debt verification or if 
456.17  the unaudited financial statement for the school year ending 
456.18  June 30, 1977 reveals that a statutory operating debt might 
456.19  exist, the commissioner shall require a verification of the 
456.20  amount of the statutory operating debt which actually does exist.
456.21     Subd. 4.  [DEBT ELIMINATION.] If an audit or other 
456.22  verification procedure conducted pursuant to subdivision 3 
456.23  determines that a statutory operating debt exists, a district 
456.24  must follow the procedures set forth in section 124.914, 
456.25  subdivision 1, to eliminate this statutory operating debt. 
456.26     Subd. 5.  [CERTIFICATION OF DEBT.] The commissioner shall 
456.27  certify the amount of statutory operating debt for each 
456.28  district.  Prior to June 30, 1979, the commissioner may, on the 
456.29  basis of corrected figures, adjust the total amount of statutory 
456.30  operating debt certified for any district. 
456.31     Subd. 6.  [REPORT.] On January 15, 1998, the commissioner 
456.32  shall report to the legislature on the districts for which the 
456.33  levy allowable under section 124.914, subdivision 1, has been 
456.34  insufficient to eliminate the statutory operating debt of the 
456.35  district, determined as of June 30, 1977. 
456.36     Subd. 7.  [APPLICABILITY.] This section and the provisions 
457.1   of section 124.914, subdivision 1, are applicable only to 
457.2   common, independent, and special school districts and districts 
457.3   formed pursuant to Laws 1967, chapter 822, as amended, and Laws 
457.4   1969, chapters 775 and 1060, as amended.  This section and the 
457.5   provisions of section 124.914, subdivision 1, do not apply to 
457.6   independent school district No. 625. 
457.7      Subd. 8.  [PLAN DISCLOSURE.] Any district eligible to 
457.8   receive any amounts pursuant to section 124.914, subdivision 1, 
457.9   must disclose its statutory operating debt retirement plan by 
457.10  footnote to the audited financial statement. 
457.11     Sec. 63.  [123.966] [REORGANIZATION OPERATING DEBT.] 
457.12     The "reorganization operating debt" of a school district 
457.13  means the net negative undesignated fund balance in all school 
457.14  district funds, other than capital expenditure, building 
457.15  construction, debt redemption, and trust and agency, calculated 
457.16  in accordance with the uniform financial accounting and 
457.17  reporting standards for Minnesota school districts as of: 
457.18     (1) June 30 of the fiscal year before the first year that a 
457.19  district receives revenue according to section 124.2725; or 
457.20     (2) June 30 of the fiscal year before the effective date of 
457.21  reorganization according to section 122.22 or 122.23. 
457.22     Sec. 64.  [123.967] [EXPENDITURE LIMITATIONS.] 
457.23     Subdivision 1.  [REDUCE STATUTORY OPERATING DEBT.] (a) 
457.24  Beginning in fiscal year 1978 and in each year thereafter, a 
457.25  district which had statutory operating debt on June 30, 1977 
457.26  pursuant to section 121.914 must limit its expenditures in each 
457.27  fiscal year so that the amount of its statutory operating debt 
457.28  calculated at the end of that fiscal year is not greater than 
457.29  the amount of the district's statutory operating debt as of June 
457.30  30, 1977, as certified and adjusted by the commissioner, 
457.31  increased by an amount equal to 2-1/2 percent of that district's 
457.32  operating expenditures for the fiscal year for which the 
457.33  statutory operating debt calculation is being made. 
457.34     (b) When a district is no longer required to levy pursuant 
457.35  to section 124.914, subdivision 1, subdivision 2 is applicable. 
457.36     Subd. 2.  [UNDESIGNATED FUND BALANCES.] Beginning in fiscal 
458.1   year 1978 and each year thereafter, any district not subject to 
458.2   the provisions of subdivision 1 must limit its expenditures so 
458.3   that its undesignated fund balances do not constitute statutory 
458.4   operating debt as defined in section 121.914. 
458.5      Subd. 3.  [FAILURE TO LIMIT EXPENDITURES.] If a district 
458.6   does not limit its expenditures in accordance with this section, 
458.7   the commissioner may so notify the appropriate committees of the 
458.8   legislature by no later than January 1 of the year following the 
458.9   end of that fiscal year. 
458.10     Subd. 4.  [SPECIAL OPERATING PLAN.] (1) If the net negative 
458.11  unappropriated operating fund balance as defined in section 
458.12  124A.02, subdivision 25, calculated in accordance with the 
458.13  uniform financial accounting and reporting standards for 
458.14  Minnesota school districts, as of June 30 each year, is more 
458.15  than 2-1/2 percent of the year's expenditure amount, the 
458.16  district must, prior to January 31 of the next fiscal year, 
458.17  submit a special operating plan to reduce the district's deficit 
458.18  expenditures to the commissioner for approval.  The commissioner 
458.19  may also require the district to provide evidence that the 
458.20  district meets and will continue to meet all of the curriculum 
458.21  requirements of the state board. 
458.22     Notwithstanding any other law to the contrary, a district 
458.23  submitting a special operating plan to the commissioner under 
458.24  this clause which is disapproved by the commissioner must not 
458.25  receive any aid pursuant to chapters 124 and 124A until a 
458.26  special operating plan of the district is so approved. 
458.27     (2) A district must receive aids pending the approval of 
458.28  its special operating plan under clause (1).  A district which 
458.29  complies with its approved operating plan must receive aids as 
458.30  long as the district continues to comply with the approved 
458.31  operating plan. 
458.32     Sec. 65.  [123.968] [LEARNING YEAR PROGRAMS.] 
458.33     Subdivision 1.  [PROGRAM ESTABLISHED.] A learning year 
458.34  program provides instruction throughout the year.  A pupil may 
458.35  participate in the program and accelerate attainment of grade 
458.36  level requirements or graduation requirements.  A learning year 
459.1   program may begin after the close of the regular school year in 
459.2   June.  The program may be for students in one or more grade 
459.3   levels from kindergarten through grade 12.  
459.4      Students may participate in the program if they reside in:  
459.5      (1) a district that has been designated a learning year 
459.6   site under subdivision 2; 
459.7      (2) a district that is a member of the same education 
459.8   district as a site; or 
459.9      (3) a district that participates in the same area learning 
459.10  center program as a site.  
459.11     Subd. 2.  [STATE BOARD DESIGNATION.] An area learning 
459.12  center designated by the state must be a site.  To be 
459.13  designated, a district or center must demonstrate to the 
459.14  commissioner that it will: 
459.15     (1) provide a program of instruction that permits pupils to 
459.16  receive instruction throughout the entire year; and 
459.17     (2) maintain a record system that, for purposes of section 
459.18  124.17, permits identification of membership attributable to 
459.19  pupils participating in the program.  The record system and 
459.20  identification must ensure that the program will not have the 
459.21  effect of increasing the total number of pupil units 
459.22  attributable to an individual pupil as a result of a learning 
459.23  year program.  
459.24     Subd. 3.  [STUDENT PLANNING.] A district must inform all 
459.25  pupils and their parents about the learning year program.  A 
459.26  continual learning plan must be developed for each pupil with 
459.27  the participation of the pupil, parent or guardian, teachers, 
459.28  and other staff.  The plan must specify the learning experiences 
459.29  that must occur each year and, for secondary students, for 
459.30  graduation.  The plan may be modified to conform to district 
459.31  schedule changes.  The district may not modify the plan if the 
459.32  modification would result in delaying the student's time of 
459.33  graduation.  
459.34     Subd. 4.  [TRANSPORTATION.] Summer transportation 
459.35  expenditures for this program must be included in nonregular 
459.36  transportation according to sections 124.225, subdivision 8; and 
460.1   124.226, subdivision 4.  
460.2      Subd. 5.  [CONTRACTS.] A district may contract with a 
460.3   licensed employee to provide services in a learning year program 
460.4   that are in addition to the services provided according to the 
460.5   master contract of employment for teachers or an equivalent 
460.6   contract for licensed employees who are not teachers.  These 
460.7   additional services and compensation, if any, for the services 
460.8   must not become a part of the employee's continuing contract 
460.9   rights under section 125.12 or 125.17.  
460.10     Subd. 6.  [REVENUE COMPUTATION AND REPORTING.] Aid and levy 
460.11  revenue computations must be based on the total number of hours 
460.12  of education programs for pupils in average daily membership for 
460.13  each fiscal year.  For purposes of section 124.17, average daily 
460.14  membership shall be computed by dividing the total number of 
460.15  hours of participation for the fiscal year by the minimum number 
460.16  of hours for a year determined for the appropriate grade level.  
460.17  Hours of participation that occur after the close of the regular 
460.18  instructional year and before July 1 must be attributed to the 
460.19  following fiscal year.  Thirty hours may be used for teacher 
460.20  workshops, staff development, or parent-teacher conferences.  As 
460.21  part of each pilot program, the department and each district 
460.22  must report and evaluate the changes needed to adjust the dates 
460.23  of the fiscal year for aid and levy computation and fiscal year 
460.24  reporting.  For revenue computation purposes, the learning year 
460.25  program shall generate revenue based on the formulas for the 
460.26  fiscal year in which the services are provided. 
460.27     State aid and levy revenue computation for the learning 
460.28  year programs begins July 1, 1988, for fiscal year 1989.  
460.29     Subd. 7.  [EXEMPTION.] To operate the pilot program, the 
460.30  state board of education may exempt the district from specific 
460.31  rules relating to student and financial accounting, reporting, 
460.32  and revenue computation.  
460.33     Sec. 66.  [123.98] [PURPOSE OF FLEXIBLE LEARNING YEAR 
460.34  PROGRAMS.] 
460.35     Sections 120.59 to 120.67 authorize districts to evaluate, 
460.36  plan and employ the use of flexible learning year programs.  It 
461.1   is anticipated that the open selection of the type of flexible 
461.2   learning year operation from a variety of alternatives will 
461.3   allow each district seeking to utilize this concept to suitably 
461.4   fulfill the educational needs of its pupils.  These alternatives 
461.5   must include, but not be limited to, various 45-15 plans, 
461.6   four-quarter plans, quinmester plans, extended learning year 
461.7   plans, flexible all-year plans, and four-day week plans.  
461.8      Sec. 67.  [123.981] [DEFINITION OF FLEXIBLE LEARNING YEAR.] 
461.9      "Flexible learning year program" means any district plan 
461.10  approved by the state board that utilizes buildings and 
461.11  facilities during the entire year or that provides forms of 
461.12  optional scheduling of pupils and personnel during the learning 
461.13  year in elementary and secondary schools or residential 
461.14  facilities for children with a disability.  
461.15     Sec. 68.  [123.983] [ESTABLISHMENT OF FLEXIBLE LEARNING 
461.16  YEAR PROGRAM.] 
461.17     The board of any district, with the approval of the state 
461.18  board, may establish and operate a flexible learning year 
461.19  program in one or more of the day or residential facilities for 
461.20  children with a disability within the district. 
461.21     Sec. 69.  [123.984] [DIVISION OF CHILDREN INTO GROUPS.] 
461.22     The board of any district operating a flexible learning 
461.23  year program in one or more of the facilities within the 
461.24  district must divide the students of each selected facility into 
461.25  as many groups as necessary to accommodate this program.  
461.26  Students of the same family must be placed in the same group 
461.27  unless one or more of these students is enrolled in a special 
461.28  education class or unless the parent or guardian of these 
461.29  students requests that the students be placed in different 
461.30  groups.  No board may discriminate on the basis of race, color, 
461.31  creed, religion, marital status, status with regard to public 
461.32  assistance, sex, or national origin when assigning pupils to 
461.33  attendance groups pursuant to this section.  
461.34     Sec. 70.  [123.985] [PUBLIC HEARING BEFORE IMPLEMENTATION.] 
461.35     Before implementing a flexible learning year program in any 
461.36  facility of the district, the board must negotiate with the 
462.1   teachers, principals, assistant principals, supervisory 
462.2   personnel and employees to the extent required by the public 
462.3   employment labor relations act, and must consult with the 
462.4   parents of pupils who would be affected by the change, and with 
462.5   the community at large.  These procedures must include at least 
462.6   three informational meetings for which the board has given 
462.7   published notice to the teachers and employees and to the 
462.8   parents of pupils affected.  
462.9      Sec. 71.  [123.986] [ASSIGNMENT OF TEACHERS.] 
462.10     Subdivision 1.  [IMPLEMENTING PROGRAM.] In districts where 
462.11  a flexible learning year program is implemented in fewer than 
462.12  all of the facilities maintained by the district, the board of 
462.13  the district must make every reasonable effort to assign 
462.14  qualified teachers who prefer a traditional schedule to 
462.15  facilities of the same level retaining a traditional schedule. 
462.16     Subd. 2.  [TEACHER SCHEDULE.] A full-time teacher currently 
462.17  employed by a district that converts to a flexible learning year 
462.18  program may not, without the teacher's written consent, be 
462.19  required to teach under this program (1) more or less than the 
462.20  number of scheduled days or their equivalent the facilities of 
462.21  the district were maintained during the year preceding 
462.22  implementation of the flexible learning year program; (2) in a 
462.23  period of the calendar year substantially different from the 
462.24  period in which the teacher taught during the year preceding 
462.25  implementation of the flexible learning year program. 
462.26     Subd. 3.  [CONTRACT RIGHTS; PROGRAM ADOPTION.] In no event 
462.27  may a teacher's continuing contract rights to a position held 
462.28  the year preceding implementation of a flexible learning year 
462.29  program or teaching experience earned during a probationary 
462.30  period the year preceding implementation be lost or impaired 
462.31  upon adoption of a flexible learning year program.  If the year 
462.32  of teaching preceding implementation was the end of a 
462.33  probationary period, the continuing contract right to a full 
462.34  year's contract that normally would be acquired for the next 
462.35  succeeding learning year must be acquired in the year of 
462.36  adoption of the flexible program. 
463.1      Subd. 4.  [CONTRACT FOR LEARNING YEAR.] Any district 
463.2   operating a flexible learning year program must enter into one 
463.3   contract governing the entire learning year with each teacher 
463.4   employed in a flexible program.  If individual teachers contract 
463.5   to teach less than a period of 175 days during a learning year, 
463.6   each 175 days of employment accrued during any five-year period 
463.7   after the adoption of a flexible learning year program must be 
463.8   deemed consecutive and constitutes a full year's employment for 
463.9   purposes of establishing and retaining continuing contract 
463.10  rights to a full learning year position pursuant to sections 
463.11  125.12, subdivisions 3 and 4, and 125.17, subdivisions 2 and 3.  
463.12  A teacher who has not been discharged or advised of a refusal to 
463.13  renew the teacher's contract by the applicable date, as 
463.14  specified in section 125.12 or 125.17, in the year in which the 
463.15  teacher will complete the requisite number of days for securing 
463.16  a continuing contract must have a continuing full learning year 
463.17  contract with the district. 
463.18     Subd. 5.  [CONTRACT RIGHTS; TERMINATION OF PROGRAM.] 
463.19  Continuing contract rights established pursuant to this section 
463.20  must not be impaired or lost by the termination of a flexible 
463.21  learning year program. 
463.22     Sec. 72.  [123.987] [ESTABLISHMENT AND APPROVAL.] 
463.23     The state board must: 
463.24     (1) establish standards and requirements for the 
463.25  qualification of districts that may operate on a flexible 
463.26  learning year basis; 
463.27     (2) establish standards and evaluation criteria for 
463.28  flexible learning year programs; 
463.29     (3) prepare and distribute all necessary forms for 
463.30  application by any district for state authorization for a 
463.31  flexible learning year program; 
463.32     (4) review the proposed flexible learning year program of 
463.33  any qualified district as to conformity to standards and the 
463.34  evaluation of appropriateness of priorities, workability of 
463.35  procedure and overall value; and 
463.36     (5) approve or disapprove proposed flexible learning year 
464.1   programs. 
464.2      Sec. 73.  [123.988] [POWERS AND DUTIES OF THE STATE BOARD.] 
464.3      Subdivision 1.  [POWERS AND DUTIES.] The state board must: 
464.4      (1) promulgate rules necessary to the operation of sections 
464.5   120.59 to 120.67; 
464.6      (2) cooperate with and provide supervision of flexible 
464.7   learning year programs to determine compliance with the 
464.8   provisions of sections 120.59 to 120.67, the state board 
464.9   standards and qualifications, and the proposed program as 
464.10  submitted and approved; 
464.11     (3) provide any necessary adjustments of (a) attendance and 
464.12  membership computations and (b) the dates and percentages of 
464.13  apportionment of state aids; and 
464.14     (4) consistent with the definition of "average daily 
464.15  membership" in section 124.17, subdivision 2, furnish the board 
464.16  of a district implementing a flexible learning year program with 
464.17  a formula for computing average daily membership.  This formula 
464.18  must be computed so that tax levies to be made by the district, 
464.19  state aids to be received by the district, and any and all other 
464.20  formulas based upon average daily membership are not affected 
464.21  solely as a result of adopting this plan of instruction. 
464.22     Subd. 2.  [LIMITATIONS.] State board may not require 
464.23  flexible learning year program.  Sections 120.59 to 120.67 may 
464.24  not be construed to authorize the state board to require the 
464.25  establishment of a flexible learning year program in any 
464.26  district in which the board has not voted to establish, 
464.27  maintain, and operate such a program. 
464.28     Sec. 74.  [123.989] [TERMINATION OF PROGRAM.] 
464.29     The board of any district, with the approval of the state 
464.30  board of education, may terminate a flexible learning year 
464.31  program in one or more of the day or residential facilities for 
464.32  children with a disability within the district.  This section 
464.33  shall not be construed to permit an exception to section 120.101 
464.34  or 124.19. 
464.35     Sec. 75.  [REPEALER.] 
464.36     Minnesota Statutes 1996, sections 123.35, subdivisions 5, 
465.1   8, 8a, 8b, 9, 10, 13, 17, 19a, 19b, and 21; 123.351; 123.3513; 
465.2   123.3514; 123.40; 123.41; 123.42; 123.582; 123.681; 123.70; 
465.3   123.701; 123.702; 123.704; 123.7045; 123.71; 123.72; 123.76; 
465.4   123.77; 123.78; 123.79; 123.799; 123.7991; 123.7992; 123.801; 
465.5   123.805; 123.931; 123.932; 123.933; 123.935; 123.936; 123.9361; 
465.6   123.9362; 123.937; 123.947; 123.951; 123.97; and 123.972, are 
465.7   repealed. 
465.8                              ARTICLE 7 
465.9                             CHAPTER 124D 
465.10                          BASIC EDUCATION 
465.11     Section 1.  [124D.01] [DEFINITIONS.] 
465.12     The terms defined in section 120.02 and chapter 124A have 
465.13  the same meaning when they are used in this chapter, unless 
465.14  otherwise clearly indicated. 
465.15     Sec. 2.  [124D.014] [DEFINITION OF PUPIL UNITS.] 
465.16     Subdivision 1.  [PUPIL UNIT.] Pupil units for each resident 
465.17  pupil in average daily membership shall be counted according to 
465.18  this subdivision.  
465.19     (a) A prekindergarten pupil with a disability who is 
465.20  enrolled in a program approved by the commissioner and has an 
465.21  individual education plan is counted as the ratio of the number 
465.22  of hours of assessment and education service to 825 with a 
465.23  minimum of 0.28, but not more than one. 
465.24     (b) A prekindergarten pupil who is assessed but determined 
465.25  not to be handicapped is counted as the ratio of the number of 
465.26  hours of assessment service to 825.  
465.27     (c) A kindergarten pupil with a disability who is enrolled 
465.28  in a program approved by the commissioner is counted as the 
465.29  ratio of the number of hours of assessment and education 
465.30  services required in the fiscal year by the pupil's individual 
465.31  education program plan to 875, but not more than one. 
465.32     (d) A kindergarten pupil who is not included in paragraph 
465.33  (c) is counted as .53 of a pupil unit for fiscal year 1995 and 
465.34  thereafter. 
465.35     (e) A pupil who is in any of grades 1 to 6 is counted as 
465.36  1.06 pupil units for fiscal year 1995 and thereafter. 
466.1      (f) For fiscal year 1996 and fiscal year 1997, a pupil who 
466.2   is in any of grades 7 to 12 is counted as 1.3 pupil units.  For 
466.3   fiscal year 1998, a pupil who is in any of grades 7 to 12 is 
466.4   counted as 1.25 pupil units.  For fiscal year 1999 and later 
466.5   years, a pupil who is in any of grades 7 to 12 is counted as 1.2 
466.6   pupil units. 
466.7      (g) For fiscal year 1996 and fiscal year 1997, a pupil who 
466.8   is in the post-secondary enrollment options program is counted 
466.9   as 1.3 pupil units.  For fiscal year 1998, a pupil who is in the 
466.10  post-secondary enrollment options program is counted as 1.25 
466.11  pupil units.  For fiscal year 1999 and later years, a pupil who 
466.12  is in the post-secondary enrollment options program is counted 
466.13  as 1.2 pupil units. 
466.14     (h) In fiscal year 1998, the pupil units used in computing 
466.15  a district's general education revenue and referendum revenue 
466.16  may not be reduced by more than two percent due to the reduction 
466.17  in the secondary pupil weight from 1.3 as specified in 
466.18  paragraphs (f) and (g).  In fiscal year 1999 and later years, 
466.19  the pupil units used in computing a district's general education 
466.20  revenue and referendum revenue may not be decreased by more than 
466.21  four percent due to the reduction in the secondary weight from 
466.22  1.3 as specified in paragraphs (f) and (g). 
466.23     Subd. 2.  [FOREIGN EXCHANGE PUPILS.] Notwithstanding 
466.24  section 123.35, subdivision 8c, or any other law to the 
466.25  contrary, a foreign exchange pupil enrolled in a district under 
466.26  a cultural exchange program may be counted as a resident pupil 
466.27  for the purposes of this chapter and chapter 124A even if the 
466.28  pupil has graduated from high school or the equivalent. 
466.29     Subd. 3.  [AFDC PUPIL UNITS.] AFDC pupil units for fiscal 
466.30  year 1993 and thereafter must be computed according to this 
466.31  subdivision.  
466.32     (a) The AFDC concentration percentage for a district equals 
466.33  the product of 100 times the ratio of:  
466.34     (1) the number of pupils enrolled in the district from 
466.35  families receiving aid to families with dependent children 
466.36  according to subdivision 1e; to 
467.1      (2) the number of pupils in average daily membership 
467.2   according to subdivision 1e enrolled in the district. 
467.3      (b) The AFDC pupil weighting factor for a district equals 
467.4   the lesser of one or the quotient obtained by dividing the 
467.5   district's AFDC concentration percentage by 11.5.  
467.6      (c) The AFDC pupil units for a district for fiscal year 
467.7   1993 and thereafter equals the product of:  
467.8      (1) the number of pupils enrolled in the district from 
467.9   families receiving aid to families with dependent children 
467.10  according to subdivision 1e; times 
467.11     (2) the AFDC pupil weighting factor for the district; times 
467.12     (3) .67. 
467.13     Subd. 4.  [AFDC PUPIL COUNTS.] AFDC pupil counts and 
467.14  average daily membership for subdivisions 1b and 1d shall be 
467.15  determined according to this subdivision: 
467.16     (a) For districts where the number of pupils from families 
467.17  receiving aid to families with dependent children has increased 
467.18  over the preceding year for each of the two previous years, the 
467.19  number of pupils enrolled in the district from families 
467.20  receiving aid to families with dependent children shall be those 
467.21  counted on October 1 of the previous school year.  The average 
467.22  daily membership used shall be from the previous school year. 
467.23     (b) For districts that do not meet the requirement of 
467.24  paragraph (a), the number of pupils enrolled in the district 
467.25  from families receiving aid to families with dependent children 
467.26  shall be the average number of pupils on October 1 of the second 
467.27  previous school year and October 1 of the previous school year.  
467.28  The average daily membership used shall be the average number 
467.29  enrolled in the previous school year and the second previous 
467.30  school year. 
467.31     (c) Notwithstanding paragraphs (a) and (b), for charter 
467.32  schools in the first three years of operation, the number of 
467.33  pupils enrolled from families receiving AFDC shall be those 
467.34  counted on October 1 of the current school year.  The average 
467.35  daily membership used shall be from the current school year.  
467.36     Subd. 5.  [FUND BALANCE PUPIL UNITS.] Fund balance pupil 
468.1   units must be computed separately for kindergarten pupils, 
468.2   elementary pupils in grades 1 to 6, and secondary pupils in 
468.3   grades 7 to 12.  Total fund balance pupil units means the sum of 
468.4   kindergarten, elementary, and secondary fund balance pupil 
468.5   units.  Fund balance pupil units for each category means the 
468.6   number of resident pupil units in average daily membership, 
468.7   including shared time pupil units, according to section 124A.02, 
468.8   subdivision 20, plus 
468.9      (1) pupils attending the district for which general 
468.10  education aid adjustments are made according to section 
468.11  124A.036, subdivision 5; minus 
468.12     (2) the sum of the resident pupils attending other 
468.13  districts for which general education aid adjustments are made 
468.14  according to section 124A.036, subdivision 5, plus pupils for 
468.15  whom payment is made according to section 126.22, subdivision 8, 
468.16  or 126.23. 
468.17     Subd. 6.  [AVERAGE DAILY MEMBERSHIP.] Membership for pupils 
468.18  in grades kindergarten through 12 and for prekindergarten pupils 
468.19  with disabilities means the number of pupils on the current roll 
468.20  of the school, counted from the date of entry until withdrawal.  
468.21  The date of withdrawal means the day the pupil permanently 
468.22  leaves the school or the date it is officially known that the 
468.23  pupil has left or has been legally excused.  However, a pupil, 
468.24  regardless of age, who has been absent from school for 15 
468.25  consecutive school days during the regular school year or for 
468.26  five consecutive school days during summer school or 
468.27  intersession classes of flexible school year programs without 
468.28  receiving instruction in the home or hospital shall be dropped 
468.29  from the roll and classified as withdrawn.  Nothing in this 
468.30  section shall be construed as waiving the compulsory attendance 
468.31  provisions cited in section 120.101.  Average daily membership 
468.32  equals the sum for all pupils of the number of days of the 
468.33  school year each pupil is enrolled in the district's schools 
468.34  divided by the number of days the schools are in session.  Days 
468.35  of summer school or intersession classes of flexible school year 
468.36  programs are only be included in the computation of membership 
469.1   for pupils with a disability appropriately served at level 4, 5, 
469.2   or 6 of the continuum of placement model described in Minnesota 
469.3   Rules, part 3525.0200. 
469.4      Subd. 7.  [TRANSITIONAL YEAR PUPILS.] Notwithstanding 
469.5   subdivision 2, pupils granted transitional year status shall 
469.6   continue to be counted as members on the current roll of the 
469.7   school for the remainder of the school year.  For purposes of 
469.8   computing average daily membership, transitional year pupils 
469.9   must be considered to be enrolled every day school is in session 
469.10  for the remainder of the school year. 
469.11     Subd. 8.  [NATIONAL GUARD PUPILS.] Notwithstanding 
469.12  subdivision 2, pupils enrolled in the Minnesota National Guard 
469.13  program shall be construed to be in attendance, for purposes of 
469.14  computing average daily membership, during any period of the 
469.15  regular school year, but not to include summer school, during 
469.16  which the pupil is attending military active duty training 
469.17  pursuant to that program.  During that period of military active 
469.18  duty training, the pupil shall earn all aid for the district of 
469.19  residence or attendance which would be otherwise earned by the 
469.20  pupil's presence. 
469.21     Subd. 9.  [MISSED SCHOOL FOR JUSTIFIABLE 
469.22  CAUSE.] Notwithstanding subdivision 2, in cases when school is 
469.23  in session but pupils are prevented from attending for more than 
469.24  15 consecutive school days during the regular school year or 
469.25  five consecutive school days during summer school or 
469.26  intersession classes of flexible school year programs, because 
469.27  of epidemic, calamity, weather, fuel shortage, or other 
469.28  justifiable cause, the commissioner, upon application, may allow 
469.29  the district to continue to count these pupils in average daily 
469.30  membership.  A lawful employees' strike is not a justifiable 
469.31  cause for purposes of this subdivision. 
469.32     Subd. 10.  [AVERAGE DAILY MEMBERSHIP, PUPILS AGE 21 OR 
469.33  OVER.] The average daily membership for pupils age 21 or over, 
469.34  is equal to the ratio of the number of yearly hours that the 
469.35  pupil is in membership to the number of instructional hours in 
469.36  the district's regular school year.  
470.1      Subd. 11.  [PSEO PUPILS.] The average daily membership for 
470.2   a pupil participating in the post-secondary enrollment options 
470.3   program equals the lesser of 
470.4      (a) 1.00, or 
470.5      (b) the greater of 
470.6      (1) .12, or 
470.7      (2) the ratio of (i) the sum of the number of instructional 
470.8   hours the pupil is enrolled in the secondary school during 
470.9   quarters, trimesters, or semesters during which the pupil 
470.10  participates in PSEO, and hours enrolled in the secondary school 
470.11  during the remainder of the school year, to (ii) the actual 
470.12  number of instructional days in the school year times the length 
470.13  of day in the school. 
470.14     Subd. 12.  [PRIOR YEAR PUPIL UNITS.] In computing pupil 
470.15  units for a prior year, the number of pupil units shall be 
470.16  adjusted to reflect any change for the current year in relative 
470.17  weightings by grade level or category of special assistance, any 
470.18  change in measurement from average daily attendance to average 
470.19  daily membership and any change in school district boundaries, 
470.20  but not for the addition for the first time in the current year 
470.21  of a specified category of special assistance as provided in 
470.22  subdivision 1, clause (4). 
470.23     Subd. 13.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
470.24  enrolled in a learning year program according to section 
470.25  121.585, an area learning center according to sections 124C.45 
470.26  and 124C.46, or an alternative program approved by the 
470.27  commissioner, for more than 1,020 hours in a school year for a 
470.28  secondary student and for more than 935 hours in a school year 
470.29  for an elementary student, that pupil may be counted as more 
470.30  than one pupil in average daily membership.  The amount in 
470.31  excess of one pupil must be determined by the ratio of the 
470.32  number of hours of instruction provided to that pupil in excess 
470.33  of 1,020 hours to 1,020 for a secondary pupil and of 935 hours 
470.34  to 935 for an elementary pupil.  Hours that occur after the 
470.35  close of the instructional year in June must be attributable to 
470.36  the following fiscal year. 
471.1      (b)(i) To receive general education revenue for a pupil in 
471.2   an alternative program that has an independent study component, 
471.3   a district must meet the requirements in this paragraph.  The 
471.4   district must develop, with the pupil, a continual learning plan 
471.5   for the pupil.  A district must allow a minor pupil's parent or 
471.6   guardian to participate in developing the plan, if the parent or 
471.7   guardian wants to participate.  The plan must identify the 
471.8   learning experiences and expected outcomes needed for 
471.9   satisfactory credit for the year and for graduation.  The plan 
471.10  must be updated each year. 
471.11     (ii) General education revenue for a pupil in an approved 
471.12  alternative program without an independent study component must 
471.13  be prorated for a pupil participating for less than a full year, 
471.14  or its equivalent. 
471.15     (iii) General education revenue for a pupil in an approved 
471.16  alternative program that has an independent study component must 
471.17  be paid for each hour of teacher contact time and each hour of 
471.18  independent study time completed toward a credit necessary for 
471.19  graduation.  Average daily membership for a pupil shall equal 
471.20  the number of hours of teacher contact time and independent 
471.21  study time divided by 1,020. 
471.22     (iv) For an alternative program having an independent study 
471.23  component, the commissioner shall require a description of the 
471.24  courses in the program, the kinds of independent study involved, 
471.25  the expected learning outcomes of the courses, and the means of 
471.26  measuring student performance against the expected outcomes. 
471.27     Subd. 14.  [BASIC SKILLS SUMMER SCHOOL PUPIL UNITS.] When a 
471.28  pupil who has not passed an assessment of basic graduation 
471.29  standards in reading, writing, or mathematics is enrolled in a 
471.30  mastery of basic skills summer school program that is not a part 
471.31  of the regular school term and the student has a total 
471.32  enrollment time of more than 1,020 hours in a school year, the 
471.33  pupil may be counted as more than one pupil in average daily 
471.34  membership for purposes of this subdivision only.  The amount in 
471.35  excess of one pupil must be determined by the ratio of the 
471.36  number of hours of instruction provided to that pupil in excess 
472.1   of 1,020 hours.  For each pupil, only the amount of summer 
472.2   school enrollment time attributable to basic skills instruction 
472.3   may be used to calculate the additional hours in the school 
472.4   year.  Basic skills instruction is defined as in Minnesota's 
472.5   rules on graduation standards and includes reading, writing, and 
472.6   mathematics.  Hours that occur after the close of the 
472.7   instructional year in June must be attributable to the following 
472.8   fiscal year.  A pupil for whom payment is made under this 
472.9   subdivision may be counted by a district only for the 
472.10  computation of basic revenue, according to section 124A.22, 
472.11  subdivision 2, minus $300. 
472.12     Sec. 3.  [124D.018] [AFDC PUPIL COUNT.] 
472.13     Each year by March 1, the department of human services 
472.14  shall certify to the department of children, families, and 
472.15  learning, for each district, the number of pupils from families 
472.16  receiving aid to families with dependent children who were 
472.17  enrolled in a public school on October 1 of the preceding year.  
472.18     Sec. 4.  [124D.02] [PSEO REPLACEMENT AID.] 
472.19     Subdivision 1.  [ELIGIBILITY.] A school district that meets 
472.20  the following criteria is eligible for PSEO replacement aid: 
472.21     (1) the number of pupils or portions of pupils in average 
472.22  daily membership using the post-secondary enrollment options 
472.23  program exceeds four percent of the district's enrollment in 
472.24  grades 11 and 12; 
472.25     (2) the enrollment in average daily membership in the 
472.26  district is less in the current year than it was five years 
472.27  previous; and 
472.28     (3) the district is adjacent to at least two districts that 
472.29  are eligible for elementary or secondary sparsity revenue. 
472.30     Subd. 2.  [AID AMOUNT.] PSEO replacement aid equals: 
472.31     (1) the number of pupils or portions of pupils in average 
472.32  daily membership using the post-secondary enrollment options 
472.33  program for the portion of time not attending the district, 
472.34  minus 
472.35     (2) the number of pupils in average daily membership in 
472.36  grades 11 and 12 in the district multiplied by four percent, 
473.1   multiplied by 
473.2      (3) the secondary pupil weighting of 1.3, multiplied by 
473.3      (4) the basic formula allowance for the fiscal year. 
473.4   The PSEO replacement aid is not less than zero. 
473.5      Sec. 5.  [124D.024] [REQUIREMENTS FOR AID GENERALLY.] 
473.6      Subdivision 1.  [UNLICENSED TEACHERS; AID REDUCTION.] When 
473.7   a district employs one or more teachers who do not hold a valid 
473.8   teaching license, state aid shall be withheld in the proportion 
473.9   that the number of such teachers is to the total number of 
473.10  teachers employed by the district, multiplied by 60 percent of 
473.11  the basic revenue, as defined in section 124A.22, subdivision 2, 
473.12  of the district for the year in which the employment occurred. 
473.13     Subd. 2.  [INSTRUCTIONAL HOURS.] In a school where the 
473.14  number of instructional hours in the school day is greater than 
473.15  the number of instructional hours prescribed in the rules of the 
473.16  state board for the school day, the excess number of 
473.17  instructional hours for those days may be included in 
473.18  calculating the required number of days school is in session for 
473.19  purposes of fulfilling the requirements of subdivision 1.  
473.20  Instructional hours from half-day sessions or any school day 
473.21  which has less instructional hours than the number of 
473.22  instructional hours prescribed in the rules of the state board 
473.23  must be excluded, unless the average number of instructional 
473.24  hours for all school days in the school year equals or exceeds 
473.25  the number of instructional hours prescribed in the rules of the 
473.26  state board.  The district shall notify the department of each 
473.27  adjustment.  
473.28     Subd. 3.  [SCHEDULE ADJUSTMENTS.] (a) It is the intention 
473.29  of the legislature to encourage efficient and effective use of 
473.30  staff and facilities by districts.  Districts are encouraged to 
473.31  consider both cost and energy saving measures.  
473.32     (b) Notwithstanding the provisions of subdivision 1 or 4, 
473.33  any district operating a program pursuant to sections 120.59 to 
473.34  120.67, 121.585 or 125.701 to 125.705, or operating a 
473.35  commissioner-designated area learning center program under 
473.36  section 124C.49, or that otherwise receives the approval of the 
474.1   commissioner to operate its instructional program to avoid an 
474.2   aid reduction in any year, may adjust the annual school schedule 
474.3   for that program throughout the calendar year.  
474.4      Sec. 6.  [124D.028] [REVENUE FOR AN OUTCOME-BASED SCHOOL.] 
474.5      Subdivision 1.  [GENERAL EDUCATION REVENUE.] General 
474.6   education revenue must be paid to a charter school as though it 
474.7   were a district.  The general education revenue for each pupil 
474.8   unit is the state average general education revenue per pupil 
474.9   unit minus $170, calculated without compensatory revenue, 
474.10  transportation sparsity revenue, and the transportation portion 
474.11  of the transition revenue adjustment, plus compensatory revenue 
474.12  as though the school were a school district. 
474.13     Subd. 2.  [TRANSPORTATION REVENUE.] Transportation revenue 
474.14  must be paid to a charter school that provides transportation 
474.15  services according to section 120.064, subdivision 15, according 
474.16  to this subdivision.  Transportation aid must equal 
474.17  transportation revenue.  
474.18     (a) In addition to the revenue under subdivision 1, a 
474.19  charter school providing transportation services must receive 
474.20  general education aid for each pupil unit equal to the sum of 
474.21  $170, plus the transportation sparsity allowance for the school 
474.22  district in which the charter school is located, plus the 
474.23  transportation transition allowance for the district in which 
474.24  the charter school is located.  
474.25     (b) For the first two years that a charter school is 
474.26  providing transportation services, the special programs 
474.27  transportation revenue equals the charter school's actual cost 
474.28  in the current school year for transportation services for 
474.29  children with disabilities under section 124.223, subdivisions 
474.30  4, 5, 7, and 8.  For the third year of transportation services 
474.31  and later fiscal years, the special programs transportation 
474.32  revenue shall be computed according to section 124.225, 
474.33  subdivision 14.  
474.34     Subd. 3.  [USE OF TOTAL OPERATING CAPITAL REVENUE.] 
474.35  Notwithstanding section 124A.22, subdivision 11, a charter 
474.36  school may use total operating capital revenue for any purpose 
475.1   related to the school. 
475.2      Subd. 4.  [SPECIAL EDUCATION AND LIMITED ENGLISH 
475.3   PROFICIENCY AID.] Special education aid must be paid to a 
475.4   charter school according to sections 124.3201 and 124.3202, as 
475.5   though it were a district.  The charter school may charge 
475.6   tuition to the district of residence as provided in section 
475.7   120.17, subdivision 4.  Limited English proficiency programs aid 
475.8   must be paid to a charter school according to section 124.273 as 
475.9   though it were a district.  The charter school must allocate its 
475.10  special education levy equalization revenue to the resident 
475.11  districts of the pupils attending the charter school.  The 
475.12  districts of residence must levy as though they were 
475.13  participating in a cooperative, as provided in section 124.321, 
475.14  subdivision 3. 
475.15     Subd. 5.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
475.16  school is eligible to receive other aids, grants, and revenue 
475.17  according to chapters 120 to 129, as though it were a district 
475.18  except that, notwithstanding section 124.195, subdivision 3, the 
475.19  payments must be of an equal amount on each of the 23 payment 
475.20  dates unless a charter school is in its first year of 
475.21  operation.  If a charter school is in its first year of 
475.22  operation it must receive on its first payment date 15 percent 
475.23  of its cumulative amount guaranteed for the year and 22 payments 
475.24  of an equal amount thereafter the sum of which must be 85 
475.25  percent of the cumulative amount guaranteed.  However, it may 
475.26  not receive aid, a grant, or revenue if a levy is required to 
475.27  obtain the money, except as otherwise provided in this section.  
475.28  Federal aid received by the state must be paid to the school, if 
475.29  it qualifies for the aid as though it were a district. 
475.30     (b) Any revenue received from any source, other than 
475.31  revenue that is specifically allowed for operational, 
475.32  maintenance, capital facilities revenue under paragraph (c), and 
475.33  capital expenditure equipment costs under this section, may be 
475.34  used only for the planning and operational start-up costs of a 
475.35  charter school.  Any unexpended revenue from any source under 
475.36  this paragraph must be returned to that revenue source or 
476.1   conveyed to the sponsoring district, at the discretion of the 
476.2   revenue source. 
476.3      (c) A charter school may receive money from any source for 
476.4   capital facilities needs.  Any unexpended capital facilities 
476.5   revenue must be reserved and shall be expended only for future 
476.6   capital facilities purposes. 
476.7      Subd. 6.  [USE OF STATE MONEY.] Money received from the 
476.8   state may not be used to purchase land or buildings.  The school 
476.9   may own land and buildings if obtained through nonstate sources. 
476.10     Sec. 7.  [124D.03] [STATE GOALS FOR SYSTEMIC CHANGE USING 
476.11  TECHNOLOGICAL ADVANCES.] 
476.12     The general framework outcomes for technology use in 
476.13  education are: 
476.14     (1) all Minnesota educational institutions, libraries, and 
476.15  communities will have access to local, state, and worldwide 
476.16  instructional resources databases; 
476.17     (2) development of policies and procedures that assure 
476.18  instructional resource availability to help students 
476.19  successfully achieve education excellence and state standards; 
476.20     (3) databases are accessible within each district and on 
476.21  the Internet; and 
476.22     (4) development of policies, procedures, and systems that 
476.23  stimulate and promote teacher and student curriculum and 
476.24  learning collaboration. 
476.25     Sec. 8.  [124D.034] [POLICY.] 
476.26     In districts where the state provides aids for 
476.27  transportation it is in the public interest to provide equality 
476.28  of treatment in transporting school children of the state who 
476.29  are required to attend elementary and secondary schools pursuant 
476.30  to chapter 120, so that the health, welfare and safety of such 
476.31  children, while using the public highways of the state, shall be 
476.32  protected.  
476.33     School children attending any schools, complying with 
476.34  section 120.101, are therefore entitled to the same rights and 
476.35  privileges relating to transportation.  
476.36     Sec. 9.  [124D.038] [DEFINITIONS.] 
477.1      Subdivision 1.  [DEFINITIONS.] The following words and 
477.2   terms in sections 123.76 to 123.805 shall have the following 
477.3   meanings ascribed to them. 
477.4      Subd. 2.  [DISTRICT.] "District" means any school district 
477.5   as defined in section 120.02. 
477.6      Subd. 3.  [SCHOOL.] "School" means any school as defined in 
477.7   section 120.101, subdivision 4. 
477.8      Subd. 4.  [SCHOOL BOARD.] "School board" means the 
477.9   governing body of any school district. 
477.10     Subd. 5.  [SCHOOL CHILDREN.] "School children" means any 
477.11  student or child attending or required to attend any school as 
477.12  provided in the education code, chapters 120 to 129. 
477.13     Sec. 10.  [124D.04] [EQUAL TREATMENT.] 
477.14     Subdivision 1.  [GENERAL PROVISIONS.] A district shall 
477.15  provide equal transportation within the district for all school 
477.16  children to any school when transportation is deemed necessary 
477.17  by the school board because of distance or traffic condition in 
477.18  like manner and form as provided in sections 123.39 and 124.223, 
477.19  when applicable. 
477.20     Subd. 2.  [NONPUBLIC SCHOOL STUDENTS.] (a) The board of any 
477.21  local district must provide school bus transportation to the 
477.22  district boundary for school children residing in the district 
477.23  at least the same distance from a nonpublic school actually 
477.24  attended in another district as public school pupils are 
477.25  transported in the transporting district.  Such transportation 
477.26  must be provided whether or not there is another nonpublic 
477.27  school within the transporting district, if the transportation 
477.28  is to schools maintaining grades or departments not maintained 
477.29  in the district or if the attendance of such children at school 
477.30  can more safely, economically, or conveniently be provided for 
477.31  by such means.  
477.32     (b) The school board of any local district may provide 
477.33  school bus transportation to a nonpublic school in another 
477.34  district for school children residing in the district and 
477.35  attending that school, whether or not there is another nonpublic 
477.36  school within the transporting district, if the transportation 
478.1   is to schools maintaining grades or departments not maintained 
478.2   in the district or if the attendance of such children at school 
478.3   can more safely, economically, or conveniently be provided for 
478.4   by such means.  If the board transports children to a nonpublic 
478.5   school located in another district, the nonpublic school must 
478.6   pay the cost of such transportation provided outside the 
478.7   district boundaries. 
478.8      Subd. 3.  [BOARD CONTROL.] When transportation is provided, 
478.9   the scheduling of routes, manner and method of transportation, 
478.10  control and discipline of school children and any other matter 
478.11  relating thereto shall be within the sole discretion, control 
478.12  and management of the board. 
478.13     Subd. 4.  [RULES.] The state board of education may amend 
478.14  rules relating to equal transportation. 
478.15     Sec. 11.  [124D.044] [FUNDS AND AIDS.] 
478.16     Subdivision 1.  [STATE AID.] State aids made available or 
478.17  appropriated shall be for the equal benefit of all school 
478.18  children, and be disbursed in such manner as determined by the 
478.19  board. 
478.20     Subd. 2.  [DISTRICT FUNDS.] The board of any district may 
478.21  expend any moneys in its treasury, whether received from state 
478.22  or any other source for the purpose of providing equal 
478.23  transportation treatment of all school children attending school.
478.24     Sec. 12.  [124D.048] [STUDENT TRANSPORTATION SAFETY.] 
478.25     Subdivision 1.  [RESERVED REVENUE USE.] A district must use 
478.26  the student transportation safety reserved revenue under section 
478.27  124.225, subdivision 7f, for providing student transportation 
478.28  safety programs to enhance student conduct and safety on the bus 
478.29  or when boarding and exiting the bus.  A district's student 
478.30  transportation policy must specify the student transportation 
478.31  safety activities to be carried out under this section.  A 
478.32  district's student transportation safety reserved revenue may 
478.33  only be used for the following purposes: 
478.34     (1) to provide paid adult bus monitors, including training 
478.35  and salary costs; 
478.36     (2) to provide a volunteer bus monitor program, including 
479.1   training costs and the cost of a program coordinator; 
479.2      (3) to purchase or lease optional external public address 
479.3   systems or video recording cameras for use on buses; and 
479.4      (4) other activities or equipment that have been reviewed 
479.5   by the state school bus safety advisory committee and approved 
479.6   by the commissioner of public safety. 
479.7      Subd. 2.  [REPORTING.] Districts must annually report 
479.8   expenditures from the student transportation safety reserved 
479.9   revenue to the commissioner who shall provide the information to 
479.10  the school bus safety advisory committee. 
479.11     Sec. 13.  [124D.05] [SCHOOL BUS SAFETY TRAINING.] 
479.12     Subdivision 1.  [SCHOOL BUS SAFETY WEEK.] The first week of 
479.13  school is designated as school bus safety week. 
479.14     A board may designate one day of school bus safety week as 
479.15  school bus driver day. 
479.16     Subd. 2.  [STUDENT TRAINING.] (a) Each district must 
479.17  provide public school pupils enrolled in grades kindergarten 
479.18  through 10 with age-appropriate school bus safety training.  The 
479.19  training must be results-oriented and shall consist of both 
479.20  classroom instruction and practical training using a school 
479.21  bus.  Upon completing the training, a student shall be able to 
479.22  demonstrate knowledge and understanding of at least the 
479.23  following competencies and concepts: 
479.24     (1) transportation by school bus is a privilege and not a 
479.25  right; 
479.26     (2) district policies for student conduct and school bus 
479.27  safety; 
479.28     (3) appropriate conduct while on the school bus; 
479.29     (4) the danger zones surrounding a school bus; 
479.30     (5) procedures for safely boarding and leaving a school 
479.31  bus; 
479.32     (6) procedures for safe street or road crossing; and 
479.33     (7) school bus evacuation and other emergency procedures. 
479.34     (b) Each nonpublic school located within the district must 
479.35  provide all nonpublic school pupils enrolled in grades 
479.36  kindergarten through 10 who are transported by school bus at 
480.1   public expense and attend school within the district's 
480.2   boundaries with training as required in paragraph (a).  The 
480.3   school district shall make a bus available for the practical 
480.4   training if the district transports the nonpublic students.  
480.5   Each nonpublic school shall provide the instruction. 
480.6      (c) Student school bus safety training shall commence 
480.7   during school bus safety week.  All students enrolled in grades 
480.8   kindergarten through 3 who are transported by school bus and are 
480.9   enrolled during the first or second week of school must 
480.10  demonstrate achievement of the school bus safety training 
480.11  competencies by the end of the third week of school.  All 
480.12  students enrolled in grades 4 through 10 who are transported by 
480.13  school bus and are enrolled during the first or second week of 
480.14  school must demonstrate achievement of the competencies by the 
480.15  end of the sixth week of school.  Students enrolled in grades 
480.16  kindergarten through 10 who enroll in a school after the second 
480.17  week of school and are transported by school bus shall undergo 
480.18  school bus safety training and demonstrate achievement of the 
480.19  school bus safety competencies within four weeks of the first 
480.20  day of attendance.  The pupil transportation safety director in 
480.21  each district must certify to the commissioner annually that all 
480.22  students transported by school bus within the district have 
480.23  satisfactorily demonstrated knowledge and understanding of the 
480.24  school bus safety competencies according to this section or 
480.25  provide an explanation for a student's failure to demonstrate 
480.26  the competencies.  The principal or other chief administrator of 
480.27  each nonpublic school must certify annually to the public 
480.28  transportation safety director of the district in which the 
480.29  school is located that all of the school's students transported 
480.30  by school bus at public expense have received training.  A 
480.31  district may deny transportation to a student who fails to 
480.32  demonstrate the competencies, unless the student is unable to 
480.33  achieve the competencies due to a disability, or to a student 
480.34  who attends a nonpublic school that fails to provide training as 
480.35  required by this subdivision. 
480.36     (d) A district and a nonpublic school with students 
481.1   transported by school bus at public expense must, to the extent 
481.2   possible, provide kindergarten pupils with bus safety training 
481.3   before the first day of school. 
481.4      (e) A district and a nonpublic school with students 
481.5   transported by school bus at public expense must also provide 
481.6   student safety education for bicycling and pedestrian safety, 
481.7   for students enrolled in grades kindergarten through 5. 
481.8      (f) A district and a nonpublic school with students 
481.9   transported by school bus at public expense must make reasonable 
481.10  accommodations for the school bus, bicycle, and pedestrian 
481.11  safety training of pupils known to speak English as a second 
481.12  language and pupils with disabilities. 
481.13     Subd. 3.  [MODEL TRAINING PROGRAM.] The commissioner shall 
481.14  develop a comprehensive model school bus safety training program 
481.15  for pupils who ride the bus that includes bus safety curriculum 
481.16  for both classroom and practical instruction, methods for 
481.17  assessing attainment of school bus safety competencies, and 
481.18  age-appropriate instructional materials.  The program must be 
481.19  adaptable for use by students with disabilities. 
481.20     Sec. 14.  [124D.054] [NOTICE OF RECORDING DEVICE.] 
481.21     If a video or audio recording device is placed on a school 
481.22  bus, the bus also must contain a sign or signs, conspicuously 
481.23  placed, notifying riders that their conversations or actions may 
481.24  be recorded on tape.  
481.25     Sec. 15.  [124D.058] [BUS TRANSPORTATION A PRIVILEGE NOT A 
481.26  RIGHT.] 
481.27     Transportation by school bus is a privilege not a right for 
481.28  an eligible student.  A student's eligibility to ride a school 
481.29  bus may be revoked for a violation of school bus safety or 
481.30  conduct policies, or for violation of any other law governing 
481.31  student conduct on a school bus, pursuant to a written school 
481.32  district discipline policy.  Revocation of a student's bus 
481.33  riding privilege is not an exclusion, expulsion, or suspension 
481.34  under the pupil fair dismissal act of 1974.  Revocation 
481.35  procedures for a student who is an individual with a disability 
481.36  under the Individuals with Disabilities Education Act, United 
482.1   States Code, title 20, section 1400 et seq., section 504 of the 
482.2   Rehabilitation Act of 1973, United States Code, title 29, 
482.3   section 794, and the Americans with Disabilities Act, Public Law 
482.4   Number 101-336, are governed by these provisions. 
482.5      Sec. 16.  [124D.06] [SCHOOL DISTRICT BUS SAFETY 
482.6   RESPONSIBILITIES.] 
482.7      Subdivision 1.  [COMPREHENSIVE POLICY.] Each district must 
482.8   develop and implement a comprehensive, written policy governing 
482.9   pupil transportation safety, including transportation of 
482.10  nonpublic school students, when applicable.  The policy shall, 
482.11  at minimum, contain: 
482.12     (1) provisions for appropriate student bus safety training 
482.13  under section 123.7991; 
482.14     (2) rules governing student conduct on school buses and in 
482.15  school bus loading and unloading areas; 
482.16     (3) a statement of parent or guardian responsibilities 
482.17  relating to school bus safety; 
482.18     (4) provisions for notifying students and parents or 
482.19  guardians of their responsibilities and the rules; 
482.20     (5) an intradistrict system for reporting school bus 
482.21  accidents or misconduct, a system for dealing with local law 
482.22  enforcement officials in cases of criminal conduct on a school 
482.23  bus, and a system for reporting accidents, crimes, incidents of 
482.24  misconduct, and bus driver dismissals to the department of 
482.25  public safety under section 169.452; 
482.26     (6) a discipline policy to address violations of school bus 
482.27  safety rules, including procedures for revoking a student's bus 
482.28  riding privileges in cases of serious or repeated misconduct; 
482.29     (7) a system for integrating school bus misconduct records 
482.30  with other discipline records; 
482.31     (8) a statement of bus driver duties; 
482.32     (9) planned expenditures for safety activities under 
482.33  section 123.799 and, where applicable, provisions governing bus 
482.34  monitor qualifications, training, and duties; 
482.35     (10) rules governing the use and maintenance of type III 
482.36  vehicles, drivers of type III vehicles, qualifications to drive 
483.1   a type III vehicle, qualifications for a type III vehicle and 
483.2   the circumstances under which a student may be transported in a 
483.3   type III vehicle; 
483.4      (11) operating rules and procedures; 
483.5      (12) provisions for annual bus driver in-service training 
483.6   and evaluation; 
483.7      (13) emergency procedures; 
483.8      (14) a system for maintaining and inspecting equipment; 
483.9      (15) requirements of the school district, if any, that 
483.10  exceed state law minimum requirements for school bus operations; 
483.11  and 
483.12     (16) requirements for basic first aid training, which must 
483.13  include the Heimlich maneuver and procedures for dealing with 
483.14  obstructed airways, shock, bleeding, and seizures. 
483.15     Districts are encouraged to use the model policy developed 
483.16  by the Minnesota school boards association, the department of 
483.17  public safety, and the department of children, families, and 
483.18  learning, as well as the current edition of the "National 
483.19  Standards for School Buses and Operations" published by the 
483.20  National Safety Council, in developing safety policies.  Each 
483.21  district shall submit a copy of its policy under this 
483.22  subdivision to the school bus safety advisory committee no later 
483.23  than August 1, 1994.  Each district shall review its policy 
483.24  annually and make appropriate amendments, which must be 
483.25  submitted to the school bus safety advisory committee within one 
483.26  month of approval by the school board. 
483.27     Subd. 2.  [SCHOOL TRANSPORTATION SAFETY DIRECTOR.] Each 
483.28  board shall designate a school transportation safety director to 
483.29  oversee and implement pupil transportation safety policies.  The 
483.30  director shall have day-to-day responsibility for pupil 
483.31  transportation safety within the district, including 
483.32  transportation of nonpublic school children when provided by the 
483.33  district. 
483.34     Sec. 17.  [124D.064] [TRANSPORTATION AND AUTHORIZATION.] 
483.35     Subdivision 1.  [TO AND FROM SCHOOL; BETWEEN SCHOOLS.] (a) 
483.36  Districts may provide transportation to and from schools 
484.1   resident pupils attend, between schools the resident pupils 
484.2   attend for instructional classes, or to and from 
484.3   service-learning programs.  Districts may provide the 
484.4   transportation for pupils to nonpublic schools actually 
484.5   attended, only to the extent permitted by sections 123.76 to 
484.6   123.79.  Districts may provide transportation for resident 
484.7   pupils to and from language immersion programs.  Districts may 
484.8   provide transportation for a pupil who is a custodial parent and 
484.9   that pupil's child between the pupil's home and the child care 
484.10  provider and between the provider and the school, if the home 
484.11  and provider are within the attendance area of the school.  
484.12     (b) For the purposes of this subdivision, a district may 
484.13  designate a licensed day care facility, respite care facility, 
484.14  the residence of a relative, or the residence of a person chosen 
484.15  by the pupil's parent or guardian as the home of a pupil for 
484.16  part or all of the day, if requested by the pupil's parent or 
484.17  guardian and if that facility or residence is within the 
484.18  attendance area of the school the pupil attends. 
484.19     (c) Districts may provide transportation to and from school 
484.20  of an elementary pupil who moves during the school year within 
484.21  an area designated by the district as a mobility zone, but only 
484.22  for the remainder of the school year.  The attendance areas of 
484.23  schools in a mobility zone must be contiguous.  To be in a 
484.24  mobility zone, a school must meet both of the following 
484.25  requirements: 
484.26     (1) more than 50 percent of the pupils enrolled in the 
484.27  school are eligible for free or reduced school lunch; and 
484.28     (2) the pupil withdrawal rate for the last year is more 
484.29  than 12 percent. 
484.30     (d) A pupil withdrawal rate is determined by dividing: 
484.31     (1) the sum of the number of pupils who withdraw from the 
484.32  school, during the school year, and the number of pupils 
484.33  enrolled in the school as a result of transportation provided 
484.34  under this paragraph, by 
484.35     (2) the number of pupils enrolled in the school. 
484.36     (e) The district may establish eligibility requirements for 
485.1   individual pupils to receive transportation in the mobility zone.
485.2      Subd. 2.  [OUTSIDE DISTRICT.] Districts may provide 
485.3   transportation to and from or board and lodging in another 
485.4   district, of resident pupils of a district without a secondary 
485.5   school.  The pupils may attend a classified secondary school in 
485.6   another district and may receive board and lodging in or 
485.7   transportation to and from a district having a classified 
485.8   secondary school at the expense of the district of the pupil's 
485.9   residence. 
485.10     Subd. 3.  [SECONDARY VOCATIONAL CENTERS.] Districts may 
485.11  provide transportation to and from a commissioner approved 
485.12  secondary vocational center for secondary vocational classes for 
485.13  resident pupils of any of the districts who are members of or 
485.14  participating in programs at that center. 
485.15     Subd. 4.  [PUPILS WITH DISABILITIES.] Districts must 
485.16  provide transportation or board and lodging of a pupil with a 
485.17  disability when that pupil cannot be transported on a regular 
485.18  school bus.  Districts must provide the conveying of pupils with 
485.19  a disability between home or a respite care facility and school 
485.20  and within the school plant.  Districts must provide necessary 
485.21  transportation of pupils with a disability from home or from 
485.22  school to other buildings, including centers such as 
485.23  developmental achievement centers, hospitals and treatment 
485.24  centers where special instruction or services required by 
485.25  sections 120.17 and 120.1701 are provided, within or outside the 
485.26  district where services are provided, and necessary 
485.27  transportation for resident pupils with a disability required by 
485.28  sections 120.17, subdivision 4a, and 120.1701.  Transportation 
485.29  of pupils with a disability between home or a respite care 
485.30  facility and school shall not be subject to any distance 
485.31  requirement for children. 
485.32     Subd. 5.  [BOARD AND LODGING; NONRESIDENTS WITH 
485.33  DISABILITIES.] Districts may provide, when necessary, board and 
485.34  lodging for nonresident pupils with a disability in a district 
485.35  maintaining special classes. 
485.36     Subd. 6.  [SHARED TIME.] Districts may provide 
486.1   transportation from one educational facility to another within 
486.2   the district for resident pupils enrolled on a shared time basis 
486.3   in educational programs, and necessary transportation required 
486.4   by sections 120.17, subdivision 9, and 120.1701 for resident 
486.5   pupils with a disability who are provided special instruction 
486.6   and services on a shared time basis. 
486.7      Subd. 7.  [FARIBAULT STATE ACADEMIES.] Districts may 
486.8   provide transportation for resident pupils with disabilities to 
486.9   and from board and lodging facilities when the pupil is boarded 
486.10  and lodged for educational purposes. 
486.11     Subd. 8.  [SUMMER INSTRUCTIONAL PROGRAMS.] (a) Districts 
486.12  may provide services described in subdivisions 1 to 7, 9, and 10 
486.13  when provided for pupils with a disability in conjunction with a 
486.14  summer instructional program that is offered for credit or 
486.15  required for graduation or that provides academic enrichment or 
486.16  remediation.  The reserved revenue may not be used for 
486.17  recreational sports, leisure activities, entertainment, 
486.18  recreational activities, crafts, hobbies, or any other classes 
486.19  of a similar nature.  Summer programs for a pupil with a 
486.20  disability must relate to the pupil's individual education plan. 
486.21     (b) Districts may provide services described in subdivision 
486.22  1 when provided during the summer in conjunction with a learning 
486.23  year program established under section 121.585. 
486.24     Subd. 9.  [COOPERATIVE ACADEMIC AND VOCATIONAL.] Districts 
486.25  may provide transportation to, from or between educational 
486.26  facilities located in any of two or more districts jointly 
486.27  offering academic classes or secondary vocational classes not 
486.28  provided at a secondary vocational center for resident pupils of 
486.29  any of these districts. 
486.30     Subd. 10.  [NONPUBLIC SUPPORT SERVICES.] Districts may 
486.31  provide necessary transportation within district boundaries 
486.32  between a nonpublic school and a public school or a neutral site 
486.33  for nonpublic school pupils who are provided pupil support 
486.34  services pursuant to section 123.935. 
486.35     Subd. 11.  [RULES.] The state board of education may amend 
486.36  rules relating to transportation data. 
487.1      Sec. 18.  [124D.068] [TRANSPORTATION AID ENTITLEMENT.] 
487.2      Subdivision 1.  [DEFINITIONS.] For purposes of this 
487.3   section, the terms defined in this subdivision have the meanings 
487.4   given to them. 
487.5      (a) "FTE" means a full-time equivalent pupil whose 
487.6   transportation is authorized for aid purposes by section 124.223.
487.7      (b) "Authorized cost for regular transportation" means the 
487.8   sum of: 
487.9      (1) all expenditures for transportation in the regular 
487.10  category, as defined in paragraph (c), clause (1), for which aid 
487.11  is authorized in section 124.223, plus 
487.12     (2) an amount equal to one year's depreciation on the 
487.13  district's school bus fleet and mobile units computed on a 
487.14  straight line basis at the rate of 15 percent per year for 
487.15  districts operating a program under section 121.585 for grades 1 
487.16  to 12 for all students in the district and 12-1/2 percent per 
487.17  year for other districts of the cost of the fleet, plus 
487.18     (3) an amount equal to one year's depreciation on district 
487.19  school buses reconditioned by the department of corrections 
487.20  computed on a straight line basis at the rate of 33-1/3 percent 
487.21  per year of the cost to the district of the reconditioning, plus 
487.22     (4) an amount equal to one year's depreciation on the 
487.23  district's type three school buses, as defined in section 
487.24  169.01, subdivision 6, clause (5), which must be used a majority 
487.25  of the time for the purposes in sections 124.223 and 124.226, 
487.26  subdivisions 5, 8, and 9, and were purchased after July 1, 1982, 
487.27  for authorized transportation of pupils, computed on a straight 
487.28  line basis at the rate of 20 percent per year of the cost of the 
487.29  type three school buses.  
487.30     (c) "Transportation category" means a category of 
487.31  transportation service provided to pupils as follows:  
487.32     (1) Regular transportation is transportation services 
487.33  provided during the regular school year under section 124.223, 
487.34  subdivisions 1 and 2, excluding the following transportation 
487.35  services provided under section 124.223, subdivision 1:  
487.36  transportation between schools; transportation to and from 
488.1   service-learning programs; noon transportation to and from 
488.2   school for kindergarten pupils attending half-day sessions; 
488.3   transportation of pupils to and from schools located outside 
488.4   their normal attendance areas under the provisions of a plan for 
488.5   desegregation mandated by the state board of education or under 
488.6   court order; and transportation of elementary pupils to and from 
488.7   school within a mobility zone. 
488.8      (2) Nonregular transportation is transportation services 
488.9   provided under section 124.223, subdivision 1, that are excluded 
488.10  from the regular category and transportation services provided 
488.11  under section 124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10. 
488.12     (3) Excess transportation is transportation to and from 
488.13  school during the regular school year for secondary pupils 
488.14  residing at least one mile but less than two miles from the 
488.15  public school they could attend or from the nonpublic school 
488.16  actually attended, and transportation to and from school for 
488.17  pupils residing less than one mile from school who are 
488.18  transported because of extraordinary traffic, drug, or crime 
488.19  hazards. 
488.20     (4) Desegregation transportation is transportation within 
488.21  and outside of the district during the regular school year of 
488.22  pupils to and from schools located outside their normal 
488.23  attendance areas under a plan for desegregation mandated by the 
488.24  state board or under court order.  
488.25     (5) Handicapped transportation is transportation provided 
488.26  under section 124.223, subdivision 4, for pupils with a 
488.27  disability between home or a respite care facility and school or 
488.28  other buildings where special instruction required by sections 
488.29  120.17 and 120.1701 is provided. 
488.30     (d) "Mobile unit" means a vehicle or trailer designed to 
488.31  provide facilities for educational programs and services, 
488.32  including diagnostic testing, guidance and counseling services, 
488.33  and health services.  A mobile unit located off nonpublic school 
488.34  premises is a neutral site as defined in section 123.932, 
488.35  subdivision 9. 
488.36     (e) "Current year" means the school year for which aid will 
489.1   be paid.  
489.2      (f) "Base year" means the second school year preceding the 
489.3   school year for which aid will be paid.  
489.4      (g) "Base cost" means the ratio of: 
489.5      (1) the sum of the authorized cost in the base year for 
489.6   regular transportation as defined in paragraph (b) plus the 
489.7   actual cost in the base year for excess transportation as 
489.8   defined in paragraph (c); 
489.9      (2) to the sum of the number of weighted FTE's in the 
489.10  regular and excess categories in the base year. 
489.11     (h) "Pupil weighting factor" for the excess transportation 
489.12  category for a district means the lesser of one, or the result 
489.13  of the following computation: 
489.14     (1) Divide the square mile area of the district by the 
489.15  number of FTE's in the regular and excess categories in the base 
489.16  year. 
489.17     (2) Raise the result in clause (1) to the one-fifth power. 
489.18     (3) Divide four-tenths by the result in clause (2). 
489.19     The pupil weighting factor for the regular transportation 
489.20  category is one.  
489.21     (i) "Weighted FTE's"  means the number of FTE's in each 
489.22  transportation category multiplied by the pupil weighting factor 
489.23  for that category. 
489.24     (j) "Sparsity index" for a district means the greater of 
489.25  .005 or the ratio of the square mile area of the district to the 
489.26  sum of the number of weighted FTE's by the district in the 
489.27  regular and excess categories in the base year. 
489.28     (k) "Density index" for a district means the greater of one 
489.29  or the result obtained by subtracting the product of the 
489.30  district's sparsity index times 20 from two. 
489.31     (l) "Contract transportation index" for a district means 
489.32  the greater of one or the result of the following computation: 
489.33     (1) Multiply the district's sparsity index by 20. 
489.34     (2) Select the lesser of one or the result in clause (1). 
489.35     (3) Multiply the district's percentage of regular FTE's in 
489.36  the current year using vehicles that are not owned by the school 
490.1   district by the result in clause (2). 
490.2      (m) "Adjusted predicted base cost" means the predicted base 
490.3   cost as computed in subdivision 3a as adjusted under subdivision 
490.4   7a. 
490.5      (n) "Regular transportation allowance" means the adjusted 
490.6   predicted base cost, inflated and adjusted under subdivision 7b. 
490.7      Subd. 2.  [PREDICTED BASE COST.] A district's predicted 
490.8   base cost equals the result of the following computation:  
490.9      (a) Multiply the transportation formula allowance by the 
490.10  district's sparsity index raised to the one-fourth power.  The 
490.11  transportation formula allowance is $477 for the 1993-1994 base 
490.12  year.  
490.13     (b) Multiply the result in paragraph (a) by the district's 
490.14  density index raised to the 1/2 power.  
490.15     (c) Multiply the result in paragraph (b) by the district's 
490.16  contract transportation index raised to the 1/20 power. 
490.17     Subd. 3.  [BASE YEAR SOFTENING FORMULA.] Each district's 
490.18  predicted base cost determined according to subdivision 3a must 
490.19  be adjusted as provided in this subdivision to determine the 
490.20  district's adjusted predicted base cost for that year.  The 
490.21  adjusted predicted base cost equals 50 percent of the district's 
490.22  base cost plus 50 percent of the district's predicted base cost, 
490.23  but the adjusted predicted base cost cannot be less than 80 
490.24  percent, nor more than 105 percent, of the base cost. 
490.25     Subd. 4.  [INFLATION FACTORS.] (a) The adjusted predicted 
490.26  base cost determined for a district under subdivision 7a for the 
490.27  base year must be increased by zero percent to determine the 
490.28  district's regular transportation allowance for the 1995-1996 
490.29  school year. 
490.30     (b) Notwithstanding paragraph (a), the regular 
490.31  transportation allowance for a district for the 1995-1996 school 
490.32  year cannot be less than the district's minimum regular 
490.33  transportation allowance according to Minnesota Statutes 1990, 
490.34  section 124.225, subdivision 1, paragraph (t). 
490.35     Subd. 5.  [TRANSPORTATION REVENUE.] Transportation revenue 
490.36  for each district equals the sum of the district's regular 
491.1   transportation revenue and the district's nonregular 
491.2   transportation revenue. 
491.3      (a) The regular transportation revenue for each district 
491.4   equals the district's regular transportation allowance according 
491.5   to subdivision 7b times the sum of the number of FTE's by the 
491.6   district in the regular, desegregation, and handicapped 
491.7   categories in the current school year. 
491.8      (b) For the 1995-1996 school year, the nonregular 
491.9   transportation revenue for each district equals the lesser of 
491.10  the district's actual cost in the current school year for 
491.11  nonregular transportation services or the product of the 
491.12  district's actual cost in the base year for nonregular 
491.13  transportation services as defined for the current year in 
491.14  subdivision 1, paragraph (c), times the ratio of the district's 
491.15  average daily membership for the current year to the district's 
491.16  average daily membership for the base year according to section 
491.17  124.17, subdivision 2, times the nonregular transportation 
491.18  inflation factor for the current year, minus the amount of 
491.19  regular transportation revenue attributable to FTE's in the 
491.20  desegregation and handicapped categories in the current school 
491.21  year, plus the excess nonregular transportation revenue for the 
491.22  current year according to subdivision 7e.  The nonregular 
491.23  transportation inflation factor is 1.0 for the 1995-1996 school 
491.24  year.  
491.25     Subd. 6.  [EXCESS NONREGULAR TRANSPORTATION REVENUE.] A 
491.26  district's excess nonregular transportation revenue for 
491.27  1992-1993 and later school years equals an amount equal to 80 
491.28  percent of the difference between: 
491.29     (1) the district's actual cost in the current year for 
491.30  nonregular transportation services as defined for the current 
491.31  year in subdivision 1, paragraph (c), and 
491.32     (2) the product of the district's actual cost in the base 
491.33  year for nonregular transportation services as defined for the 
491.34  current year in subdivision 1, paragraph (c), times the 
491.35  nonregular transportation inflation factor for the current year, 
491.36  times the ratio of the district's average daily membership for 
492.1   the current year to the district's average daily membership for 
492.2   the base year. 
492.3      Subd. 7.  [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 
492.4   district must reserve an amount equal to the greater of $500 or 
492.5   $1.50 times the number of fund balance pupil units, for that 
492.6   school year to provide student transportation safety programs 
492.7   under section 123.799.  This revenue may only be used if the 
492.8   district complies with the reporting requirements of section 
492.9   123.7991, 123.805, 169.452, 169.4582, or 171.321, subdivision 5. 
492.10     Subd. 8.  [TRANSPORTATION AID.] (a) A district's 
492.11  transportation aid equals the product of: 
492.12     (1) the difference between the transportation revenue and 
492.13  the sum of: 
492.14     (i) the maximum basic transportation levy for that school 
492.15  year under section 124.226, subdivision 1, plus 
492.16     (ii) the maximum nonregular transportation levy for that 
492.17  school year under section 124.226, subdivision 4, plus 
492.18     (iii) the contracted services aid reduction under 
492.19  subdivision 8k, 
492.20     (2) times the ratio of the sum of the actual amounts levied 
492.21  under section 124.226, subdivisions 1 and 4, to the sum of the 
492.22  permitted maximum levies under section 124.226, subdivisions 1 
492.23  and 4. 
492.24     (b) If the total appropriation for transportation aid for 
492.25  any fiscal year is insufficient to pay all districts the full 
492.26  amount of aid earned, the department must reduce each district's 
492.27  aid in proportion to the number of resident pupils in average 
492.28  daily membership in the district to the state total average 
492.29  daily membership, and must reduce the transportation levy of 
492.30  off-formula districts in the same proportion. 
492.31     Subd. 9.  [CONTRACTED SERVICES AID REDUCTION.] (a) Each 
492.32  year, a district's transportation aid must be reduced according 
492.33  to the provisions of this subdivision, if the district 
492.34  contracted for some or all of the transportation services 
492.35  provided in the regular category. 
492.36     (b) The department must determine the subtraction by 
493.1   computing the district's regular transportation revenue, 
493.2   excluding revenue based on the district's minimum regular 
493.3   transportation allowance according to Minnesota Statutes 1990, 
493.4   section 124.225, subdivision 1, paragraph (t), under two 
493.5   circumstances, once including the factor specified in 
493.6   subdivision 3a, paragraph (c), and once excluding the factor.  
493.7   The aid subtraction equals the difference between the district's 
493.8   revenue computed under the two circumstances. 
493.9      Subd. 10.  [ALTERNATIVE ATTENDANCE PROGRAMS.] A district 
493.10  that enrolls nonresident pupils in programs under sections 
493.11  120.062, 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 
493.12  126.22, must provide authorized transportation to the pupil 
493.13  within the attendance area for the school that the pupil 
493.14  attends.  The resident district need not provide or pay for 
493.15  transportation between the pupil's residence and the district's 
493.16  border. 
493.17     Subd. 11.  [TRANSPORTATION SAFETY AID.] A district's 
493.18  transportation safety aid equals the district's reserved revenue 
493.19  for transportation safety under subdivision 7f for that school 
493.20  year.  Failure of a district to comply with the reporting 
493.21  requirements of section 123.7991, 123.805, 169.452, 169.4582, or 
493.22  171.321, subdivision 5, may result in a withholding of that 
493.23  district's transportation safety aid for that school year. 
493.24     Subd. 12.  [DISTRICT REPORTS.] Each district must report 
493.25  data to the department as required by the department to account 
493.26  for transportation expenditures.  
493.27     Subd. 13.  [DEPRECIATION.] A district that owns school 
493.28  buses or mobile units must transfer annually from the 
493.29  undesignated fund balance account in its transportation fund to 
493.30  the reserved fund balance account for bus purchases in its 
493.31  transportation fund at least an amount equal to 15 percent per 
493.32  year for districts operating a program under section 121.585 for 
493.33  grades 1 to 12 for all students in the district and 12-1/2 
493.34  percent per year for other districts of the original cost of 
493.35  each type one or type two bus or mobile unit until the original 
493.36  cost of each type one or type two bus or mobile unit is fully 
494.1   amortized, plus 20 percent of the original cost of each type 
494.2   three bus included in the district's authorized cost under the 
494.3   provisions of subdivision 1, paragraph (b), clause (4), until 
494.4   the original cost of each type three bus is fully amortized, 
494.5   plus 33-1/3 percent of the cost to the district as of July 1 of 
494.6   each year for school bus reconditioning done by the department 
494.7   of corrections until the cost of the reconditioning is fully 
494.8   amortized; provided, if the district's transportation aid or 
494.9   levy is reduced pursuant to subdivision 8a because the 
494.10  appropriation for that year is insufficient, this amount shall 
494.11  be reduced in proportion to the reduction pursuant to 
494.12  subdivision 8a as a percentage of the district's transportation 
494.13  revenue under subdivision 7d.  
494.14     Subd. 14.  [TARGETED NEEDS TRANSPORTATION REVENUE.] A 
494.15  district's targeted needs transportation revenue for the 
494.16  1996-1997 and later school years equals the sum of the special 
494.17  programs transportation revenue according to subdivision 14, the 
494.18  integration transportation revenue according to subdivision 15, 
494.19  and the nonpublic pupil transportation revenue according to 
494.20  subdivision 16. 
494.21     Subd. 15.  [SPECIAL PROGRAMS TRANSPORTATION REVENUE.] A 
494.22  district's special programs transportation revenue for the 
494.23  1996-1997 and later school years equals the sum of: 
494.24     (a) the district's actual cost in the base year for 
494.25  transportation services for children with disabilities under 
494.26  section 124.223, subdivisions 4, 5, 7, and 8, times the ratio of 
494.27  the district's average daily membership for the current school 
494.28  year to the district's average daily membership for the base 
494.29  year; plus 
494.30     (b) the greater of zero or 80 percent of the difference 
494.31  between: 
494.32     (1) the district's actual cost in the current year for 
494.33  transportation services for children with disabilities under 
494.34  section 124.223, subdivisions 4, 5, 7, and 8; and 
494.35     (2) the amount computed in paragraph (a). 
494.36     Subd. 16.  [INTEGRATION TRANSPORTATION REVENUE.] A 
495.1   district's integration transportation revenue for the 1996-1997 
495.2   and later school years equals the following amounts: 
495.3      (a) for independent school district No. 709, Duluth, $4 
495.4   times the actual pupil units for the school year; 
495.5      (b) for independent school district No. 625, St. Paul, $73 
495.6   times the actual pupil units for the school year; and 
495.7      (c) for special school district No. 1, Minneapolis, $158 
495.8   times the actual pupil units for the school year. 
495.9      Subd. 17.  [NONPUBLIC PUPIL TRANSPORTATION REVENUE.] (a) A 
495.10  district's nonpublic pupil transportation revenue for the 
495.11  1996-1997 and later school years for transportation services for 
495.12  nonpublic school pupils according to sections 123.39, 123.76 to 
495.13  123.78, 124.223, and 124.226, equals the sum of the amounts 
495.14  computed in paragraphs (b) and (c).  This revenue does not limit 
495.15  the obligation to transport pupils under sections 123.76 to 
495.16  123.79. 
495.17     (b) For regular and excess transportation according to 
495.18  section 124.225, subdivision 1, paragraph (c), clauses (1) and 
495.19  (3), an amount equal to the product of: 
495.20     (1) the district's actual expenditure per pupil transported 
495.21  in the regular and excess transportation categories during the 
495.22  second preceding school year; times 
495.23     (2) the number of nonpublic school pupils residing in the 
495.24  district who receive regular or excess transportation service or 
495.25  reimbursement for the current school year; times 
495.26     (3) the ratio of the formula allowance pursuant to section 
495.27  124A.22, subdivision 2, for the current school year to the 
495.28  formula allowance pursuant to section 124A.22, subdivision 2, 
495.29  for the second preceding school year. 
495.30     (c) For nonregular transportation according to section 
495.31  124.225, subdivision 1, paragraph (c), clause (2), excluding 
495.32  transportation services for children with disabilities under 
495.33  section 124.223, subdivisions 4, 5, 7, and 8, and late activity 
495.34  transportation according to section 124.226, subdivision 9, an 
495.35  amount equal to the product of: 
495.36     (1) the district's actual expenditure for nonregular and 
496.1   late activity transportation for nonpublic school pupils during 
496.2   the second preceding school year; times 
496.3      (2) the ratio of the formula allowance pursuant to section 
496.4   124A.22, subdivision 2, for the current school year to the 
496.5   formula allowance pursuant to section 124A.22, subdivision 2, 
496.6   for the second preceding school year. 
496.7      (d) Notwithstanding the amount of the formula allowance for 
496.8   fiscal years 1997 and 1998 in section 124A.22, subdivision 2, 
496.9   the commissioner shall use the amount of the formula allowance 
496.10  less $300 in determining the nonpublic pupil transportation 
496.11  revenue in paragraphs (b) and (c) for fiscal years 1997 and 1998.
496.12     Subd. 18.  [TARGETED NEEDS TRANSPORTATION AID.] (a) A 
496.13  district's targeted needs transportation aid is the difference 
496.14  between its targeted needs transportation revenue under 
496.15  subdivision 13 and its targeted needs transportation levy under 
496.16  section 124.226, subdivision 10. 
496.17     (b) If a district does not levy the entire amount 
496.18  permitted, aid must be reduced in proportion to the actual 
496.19  amount levied. 
496.20     Sec. 19.  [124D.07] [TRANSPORTATION LEVIES.] 
496.21     Subdivision 1.  [BASIC TRANSPORTATION.] Each year, a 
496.22  district may levy for school transportation services an amount 
496.23  not to exceed the amount raised by the basic transportation tax 
496.24  rate times the adjusted net tax capacity of the district for the 
496.25  preceding year.  The commissioner shall establish the basic 
496.26  transportation tax rate by July 1 of each year for levies 
496.27  payable in the following year.  The basic transportation tax 
496.28  rate must be a rate, rounded up to the nearest hundredth of a 
496.29  percent, that, when applied to the adjusted net tax capacity of 
496.30  taxable property for all districts, raises the amount specified 
496.31  in this subdivision.  The basic transportation tax rate for 
496.32  transportation must be the rate that raises $64,300,000 for 
496.33  fiscal year 1993 and $68,000,000 for fiscal year 1994 and 
496.34  subsequent fiscal years.  The basic transportation tax rate 
496.35  certified by the commissioner must not be changed due to changes 
496.36  or corrections made to a district's adjusted net tax capacity 
497.1   after the tax rate has been certified. 
497.2      Subd. 2.  [EXTRA TRANSPORTATION.] When the transportation 
497.3   patterns of a district change as a result of leasing a school in 
497.4   another district, the district may, upon approval of the 
497.5   commissioner, levy for any increase in transportation cost above 
497.6   the cost that would occur without the leasing of the school.  
497.7   The commissioner shall approve a specific dollar amount which 
497.8   may be levied because of these increased costs.  The levy 
497.9   authorized by this subdivision may be computed on the basis of 
497.10  estimated increased costs.  In the first year a district makes 
497.11  the levy authorized by this subdivision, the commissioner may 
497.12  authorize a levy sufficient to pay for estimated increased costs 
497.13  resulting from leasing for two years.  The amount provided by 
497.14  this levy must not be included in the computation of the actual 
497.15  net operating cost per pupil transported in future years. 
497.16     Subd. 3.  [OFF-FORMULA ADJUSTMENT.] If a district's basic 
497.17  transportation levy under subdivision 1 attributable to that 
497.18  fiscal year is more than the difference between (1) the 
497.19  district's transportation revenue under section 124.225, 
497.20  subdivision 7d, and (2) the sum of the district's maximum 
497.21  nonregular levy under subdivision 4 and the district's 
497.22  contracted services aid reduction under section 124.225, 
497.23  subdivision 8k, and the amount of any reduction due to 
497.24  insufficient appropriation under section 124.225, subdivision 
497.25  8a, then the district's transportation levy in each fiscal year 
497.26  must be reduced by the difference between the amount of the 
497.27  excess and the amount of the aid reduction for the same fiscal 
497.28  year according to subdivision 3a. 
497.29     Subd. 4.  [TRANSPORTATION LEVY EQUITY.] (a) If a district's 
497.30  basic transportation levy for a fiscal year is adjusted 
497.31  according to subdivision 3, an amount must be deducted from the 
497.32  state payments that are authorized in chapter 273 and that are 
497.33  receivable for the same fiscal year.  The amount of the 
497.34  deduction equals the difference between:  
497.35     (1) the district's transportation revenue under section 
497.36  124.225, subdivision 7d; and 
498.1      (2) the sum of the district's maximum basic transportation 
498.2   levy under subdivision 1, the district's maximum nonregular levy 
498.3   under subdivision 4, the district's contracted services aid 
498.4   reduction under section 124.225, subdivision 8k, and the amount 
498.5   of any reduction due to insufficient appropriation under section 
498.6   124.225, subdivision 8a. 
498.7      (b) Notwithstanding paragraph (a), for fiscal year 1995, 
498.8   the amount of the deduction is one-fourth of the difference 
498.9   between clauses (1) and (2); for fiscal year 1996, the amount of 
498.10  the deduction is one-half of the difference between clauses (1) 
498.11  and (2); and for fiscal year 1997, the amount of the deduction 
498.12  is three-fourths of the difference between clauses (1) and (2).  
498.13     (c) The amount of the deduction in any fiscal year must not 
498.14  exceed the amount of state payments that are authorized in 
498.15  chapter 273 and that are receivable for the same fiscal year in 
498.16  the district's transportation fund. 
498.17     Subd. 5.  [NONREGULAR TRANSPORTATION.] A district may also 
498.18  make a levy for unreimbursed nonregular transportation costs 
498.19  pursuant to this subdivision.  
498.20     For the 1995-1996 school year, the amount of the levy must 
498.21  be the result of the following computation: 
498.22     (1) multiply 
498.23     (i) the amount of the district's nonregular transportation 
498.24  revenue under section 124.225, subdivision 7d, that is more than 
498.25  the product of $65 times the district's average daily 
498.26  membership, by 
498.27     (ii) 50 percent; 
498.28     (2) subtract the result in clause (1) from the district's 
498.29  total nonregular transportation revenue; 
498.30     (3) multiply the result in clause (2) by the lesser of one 
498.31  or the ratio of 
498.32     (i) the quotient derived by dividing the adjusted net tax 
498.33  capacity of the district for the year before the year the levy 
498.34  is certified by the average daily membership in the district for 
498.35  the school year to which the levy is attributable, to 
498.36     (ii) $8,000. 
499.1      Subd. 6.  [EXCESS TRANSPORTATION.] A district may make a 
499.2   levy for excess transportation costs according to this 
499.3   subdivision.  The amount of the levy must be the result of the 
499.4   following computation: 
499.5      (a) Multiply the lesser of (1) the regular transportation 
499.6   allowance for the fiscal year to which the levy is attributable, 
499.7   or (2) the base cost for the fiscal year to which the levy is 
499.8   attributable, by the number of weighted FTE pupils transported 
499.9   in the excess category in the district in the current school 
499.10  year.  
499.11     (b) Add to the result in paragraph (a) the actual cost in 
499.12  the fiscal year to which the levy is attributable of other 
499.13  related services that are necessary because of extraordinary 
499.14  traffic, drug, or crime hazards. 
499.15     Subd. 7.  [BUS PURCHASES.] A district may levy the amount 
499.16  necessary to eliminate any projected deficit in the reserved 
499.17  fund balance account for bus purchases in its transportation 
499.18  fund as of June 30 of the school year beginning in the calendar 
499.19  year following the calendar year the levy is certified. 
499.20     Subd. 8.  [CONTRACTED SERVICES.] A district may levy an 
499.21  amount equal to the aid subtraction computed according to 
499.22  section 124.225, subdivision 8k, for the school year beginning 
499.23  in the year the levy is certified. 
499.24     Subd. 9.  [POST-SECONDARY AGREEMENTS.] A district may levy 
499.25  an amount equal to the actual cost of transportation of 
499.26  secondary pupils enrolled in courses provided under an agreement 
499.27  authorized by section 123.33, subdivision 7, to and from a 
499.28  pupil's home and a secondary school or a post-secondary 
499.29  institution, between a secondary school and a post-secondary 
499.30  institution, or between post-secondary institutions. 
499.31     Subd. 10.  [LATE ACTIVITY BUSES.] (a) For taxes payable in 
499.32  1996, a district may levy an amount equal to the lesser of: 
499.33     (1) the actual cost of late transportation home from 
499.34  school, between schools within a district, or between schools in 
499.35  one or more districts that have an agreement under sections 
499.36  122.241 to 122.248, 122.535, 122.541, or 124.494, for pupils 
500.1   involved in after school activities for the school year 
500.2   beginning in the year the levy is certified; or 
500.3      (2) two percent of the sum of the district's regular 
500.4   transportation revenue and the district's nonregular 
500.5   transportation revenue for that school year according to section 
500.6   124.225, subdivision 7d. 
500.7      (b) A district that levies under this section must provide 
500.8   late transportation from school for students participating in 
500.9   any academic-related activities provided by the district if 
500.10  transportation is provided for students participating in 
500.11  athletic activities. 
500.12     (c) Notwithstanding section 121.904, 50 percent of the levy 
500.13  certified for taxes payable in 1994, and for each year 
500.14  thereafter the entire amount of this levy, must be recognized as 
500.15  revenue for the fiscal year in which the levy is certified. 
500.16     Subd. 11.  [TARGETED NEEDS TRANSPORTATION LEVY.] A district 
500.17  may make a levy for targeted needs transportation costs 
500.18  according to this subdivision.  The amount of the levy must be 
500.19  the result of the following computation: 
500.20     (1) For fiscal year 1997 and later, targeted needs 
500.21  transportation levy equalization revenue equals 28 percent of 
500.22  the sum of the district's special programs transportation 
500.23  revenue under section 124.225, subdivision 14, and the 
500.24  district's integration transportation revenue under section 
500.25  124.225, subdivision 15. 
500.26     (2) The targeted needs transportation levy equals the 
500.27  result in clause (1) times the lesser of one or the ratio of (i) 
500.28  the quotient derived by dividing the adjusted net tax capacity 
500.29  of the district for the year before the year the levy is 
500.30  certified by the actual pupil units in the district for the 
500.31  school year to which the levy is attributable, to (ii) $3,540. 
500.32     Sec. 20.  [124D.074] [INTERDISTRICT DESEGREGATION 
500.33  TRANSPORTATION GRANTS.] 
500.34     (a) A district that provides transportation of pupils to 
500.35  and from an interdistrict program for desegregation or 
500.36  integration purposes may apply to the commissioner for a grant 
501.1   to cover the additional costs of transportation.  
501.2      (b) A district in the metropolitan area may apply to the 
501.3   commissioner for a grant to cover the costs of transporting 
501.4   pupils who are enrolled under section 120.062 if the enrollment 
501.5   of the student in the nonresident district contributes to 
501.6   desegregation or integration purposes.  The commissioner shall 
501.7   develop the form and manner of applications, the criteria to be 
501.8   used to determine when transportation is for desegregation or 
501.9   integration purposes, and the accounting procedure to be used to 
501.10  determine excess costs.  In determining the grant amount, the 
501.11  commissioner shall consider other revenue received by the 
501.12  district for transportation for desegregation or integration 
501.13  purposes. 
501.14     (c) Grants may be awarded under paragraph (b) only if 
501.15  grants awarded under paragraph (a) have been fully funded. 
501.16     Sec. 21.  [124D.078] [ALTERNATIVE FACILITIES BONDING AND 
501.17  LEVY PROGRAM.] 
501.18     Subdivision 1.  [TO QUALIFY.] An independent or special 
501.19  school district qualifies to participate in the alternative 
501.20  facilities bonding and levy program if the district has: 
501.21     (1) more than 66 students per grade; 
501.22     (2) over 1,850,000 square feet of space; 
501.23     (3) average age of building space is 20 years or older; 
501.24     (4) insufficient funds from projected health and safety 
501.25  revenue and capital facilities revenue to meet the requirements 
501.26  for deferred maintenance, to make accessibility improvements, or 
501.27  to make fire, safety, or health repairs; and 
501.28     (5) a ten-year facility plan approved by the commissioner 
501.29  according to subdivision 2. 
501.30     Subd. 2.  [TEN-YEAR PLAN.] (a) A qualifying district must 
501.31  have a ten-year facility plan approved by the commissioner that 
501.32  includes an inventory of projects and costs that would be 
501.33  eligible for: 
501.34     (1) health and safety revenue; 
501.35     (2) disabled access levy; and 
501.36     (3) deferred capital expenditures and maintenance projects 
502.1   necessary to prevent further erosion of facilities. 
502.2      (b) The school district must: 
502.3      (1) annually update the plan; 
502.4      (2) biennially submit a facility maintenance plan; and 
502.5      (3) indicate whether the district will issue bonds to 
502.6   finance the plan or levy for the costs. 
502.7      Subd. 3.  [BOND AUTHORIZATION.] A school district, upon 
502.8   approval of its board and the commissioner, may issue general 
502.9   obligation bonds under this section to finance approved 
502.10  facilities plans.  Chapter 475, except sections 475.58 and 
502.11  475.59, must be complied with.  The district may levy under 
502.12  subdivision 5 for the debt service revenue.  The authority to 
502.13  issue bonds under this section is in addition to any bonding 
502.14  authority authorized by this chapter, or other law.  The amount 
502.15  of bonding authority authorized under this section must be 
502.16  disregarded in calculating the bonding or net debt limits of 
502.17  this chapter, or any other law other than section 475.53, 
502.18  subdivision 4. 
502.19     Subd. 4.  [LEVY PROHIBITED FOR CAPITAL PROJECTS.] A 
502.20  district that participates in the alternative facilities bonding 
502.21  and levy program is not eligible to levy and cannot receive aid 
502.22  under sections 124.83 and 124.84 for any capital projects funded 
502.23  under this section.  A district may levy and receive aid for 
502.24  health and safety environmental management costs and health and 
502.25  safety regulatory, hazard assessment, record keeping, and 
502.26  maintenance programs as defined in section 124.494, subdivision 
502.27  2, and approved by the commissioner. 
502.28     Subd. 5.  [LEVY AUTHORIZED.] A district, after local board 
502.29  approval, may levy for costs related to an approved facility 
502.30  plan as follows:  
502.31     (a) if the district has indicated to the commissioner that 
502.32  bonds will be issued, the district may levy for the principal 
502.33  and interest payments on outstanding bonds issued according to 
502.34  subdivision 3; or 
502.35     (b) if the district has indicated to the commissioner that 
502.36  the plan will be funded through levy, the district may levy 
503.1   according to the schedule approved in the plan. 
503.2      Subd. 6.  [SEPARATE ACCOUNT.] A district must establish a 
503.3   separate account under the uniform financial accounting and 
503.4   reporting standards (UFARS) for this program.  If the district's 
503.5   levy exceeds the necessary interest and principal payments and 
503.6   noncapital health and safety costs, the district must reserve 
503.7   the revenue to replace future bonding authority, prepay bonds 
503.8   authorized under this program, or make payments on principal and 
503.9   interest. 
503.10     Sec. 22.  [124D.08] [BUILDING BONDS FOR CALAMITIES.] 
503.11     Subdivision 1.  [BONDS.] When a building owned by a 
503.12  district is substantially damaged by an act of God or other 
503.13  means beyond the control of the district, the district may issue 
503.14  general obligation bonds without an election to provide money 
503.15  immediately to carry out its adopted health and safety program.  
503.16  Each year the district must pledge an attributable share of its 
503.17  health and safety revenue to the repayment of principal and 
503.18  interest on the bonds.  The pledged revenue must be transferred 
503.19  to the debt redemption fund of the district.  The district must 
503.20  submit to the department the repayment schedule for any bonds 
503.21  issued under this section.  The district must deposit in the 
503.22  debt redemption fund all proceeds received for specific costs 
503.23  for which the bonds were issued, including but not limited to:  
503.24     (1) insurance proceeds; 
503.25     (2) restitution proceeds; and 
503.26     (3) proceeds of litigation or settlement of a lawsuit. 
503.27     Before bonds are issued, the district must submit a 
503.28  combined application to the commissioner for health and safety 
503.29  revenue, according to section 124.83, and requesting review and 
503.30  comment, according to section 121.15, subdivisions 6, 7, 8, and 
503.31  9.  The commissioner shall complete all procedures concerning 
503.32  the combined application within 20 days of receiving the 
503.33  application.  The publication provisions of section 121.15, 
503.34  subdivision 9, do not apply to bonds issued under this section.  
503.35     Subd. 2.  [HEALTH AND SAFETY REVENUE.] For any fiscal year 
503.36  where the total amount of health and safety revenue is limited, 
504.1   the commissioner must award highest priority to health and 
504.2   safety revenue pledged to repay building bonds issued under 
504.3   subdivision 1. 
504.4      Sec. 23.  [124D.084] [CAPITAL EXPENDITURE PRORATION.] 
504.5      Subdivision 1.  [INSUFFICIENT FUNDS.] If the total 
504.6   appropriation for capital expenditure equipment aid or capital 
504.7   expenditure facilities aid for any fiscal year, plus any amount 
504.8   transferred under section 124.14, subdivision 7, is insufficient 
504.9   to pay all districts the full amount of aid earned, the 
504.10  department must reduce each district's capital expenditure 
504.11  facilities and equipment revenue according to the calculations 
504.12  in subdivisions 2 to 4. 
504.13     Subd. 2.  [ALLOWANCE REDUCTION.] If there are insufficient 
504.14  capital expenditure equipment and facility aid funds, the 
504.15  department must recompute the capital expenditure equipment and 
504.16  facility revenue by reducing the formula allowances to the 
504.17  levels that eliminate the deficiencies.  The levy amounts must 
504.18  not be recomputed. 
504.19     Subd. 3.  [AID REDUCTION.] A district's proration aid 
504.20  reduction is equal to the lesser of zero, or the difference of 
504.21  the existing aid calculation minus the aid amount computed under 
504.22  subdivision 2. 
504.23     Subd. 4.  [LEVY REDUCTION.] If a district's proration aid 
504.24  reduction is less than its revenue reduction, its capital 
504.25  expenditure levy authority for the following year must be 
504.26  reduced by the amount of the difference between its revenue 
504.27  reduction and its aid reduction. 
504.28     Sec. 24.  [124D.088] [PURCHASE OF CERTAIN EQUIPMENT.] 
504.29     The board of a district may issue certificates of 
504.30  indebtedness or capital notes subject to the district debt 
504.31  limits to purchase vehicles, computers, telephone systems, cable 
504.32  equipment, photocopy and office equipment, technological 
504.33  equipment for instruction, and other capital equipment having an 
504.34  expected useful life at least as long as the terms of the 
504.35  certificates or notes.  The certificates or notes must be 
504.36  payable in not more than five years and must be issued on the 
505.1   terms and in the manner determined by the board.  The 
505.2   certificates or notes may be issued by resolution and without 
505.3   the requirement for an election.  The certificates or notes are 
505.4   general obligation bonds for purposes of section 124.755.  A tax 
505.5   levy must be made for the payment of the principal and interest 
505.6   on the certificates or notes, in accordance with section 475.61, 
505.7   as in the case of bonds.  The sum of the tax levies under this 
505.8   section and section 124.2455 for each year must not exceed the 
505.9   amount of the district's total operating capital revenue for the 
505.10  year the initial debt service levies are certified.  The 
505.11  district's general education levy for each year must be reduced 
505.12  by the amount of the tax levies for debt service certified for 
505.13  each year for payment of the principal and interest on the 
505.14  certificates or notes as required by section 475.61.  
505.15     Sec. 25.  [124D.09] [ADJUSTMENTS TO CAPITAL EXPENDITURE 
505.16  AIDS.] 
505.17     The capital expenditure facilities aid under section 
505.18  124.243 and the capital expenditure equipment aid under section 
505.19  124.244 for districts must be adjusted for each pupil attending 
505.20  a nonresident district under sections 120.062, 120.075, 
505.21  120.0751, 120.0752, 124C.45 to 124C.48, and 126.22.  The 
505.22  adjustments must be made according to this subdivision. 
505.23     (a) Aid paid to a district of the pupil's residence must be 
505.24  reduced by an amount equal to the revenue amount per actual 
505.25  pupil unit of the resident district times the number of pupil 
505.26  units of pupils enrolled in nonresident districts. 
505.27     (b) Aid paid to a district serving nonresidents must be 
505.28  increased by an amount equal to the revenue amount per actual 
505.29  pupil unit of the nonresident district times the number of pupil 
505.30  units of nonresident pupils enrolled in the district.  
505.31     (c) If the amount of the reduction to be made from the aid 
505.32  of a district is greater than the amount of aid otherwise due 
505.33  the district, the excess reduction must be made from other state 
505.34  aids due the district. 
505.35     Sec. 26.  [124D.094] [BONDS FOR CERTAIN CAPITAL 
505.36  FACILITIES.] 
506.1      (a) In addition to other bonding authority, with approval 
506.2   of the commissioner, a district may issue general obligation 
506.3   bonds for certain capital projects under this section.  The 
506.4   bonds must be used only to make capital improvements including: 
506.5      (1) under section 124A.22, subdivision 11, total operating 
506.6   capital revenue uses specified in clauses (4), (6), (7), (8), 
506.7   (9), and (10); 
506.8      (2) the cost of energy modifications; 
506.9      (3) improving handicap accessibility to school buildings; 
506.10  and 
506.11     (4) bringing school buildings into compliance with life and 
506.12  safety codes and fire codes.  
506.13     (b) Before a district issues bonds under this subdivision, 
506.14  it must publish notice of the intended projects, the amount of 
506.15  the bond issue, and the total amount of district indebtedness.  
506.16     (c) A bond issue tentatively authorized by the board under 
506.17  this subdivision becomes finally authorized unless a petition 
506.18  signed by more than 15 percent of the registered voters of the 
506.19  district is filed with the school board within 30 days of the 
506.20  board's adoption of a resolution stating the board's intention 
506.21  to issue bonds.  The percentage is to be determined with 
506.22  reference to the number of registered voters in the district on 
506.23  the last day before the petition is filed with the board.  The 
506.24  petition must call for a referendum on the question of whether 
506.25  to issue the bonds for the projects under this section.  The 
506.26  approval of 50 percent plus one of those voting on the question 
506.27  is required to pass a referendum authorized by this section. 
506.28     (d) The bonds must be paid off within ten years of 
506.29  issuance.  The bonds must be issued in compliance with chapter 
506.30  475, except as otherwise provided in this section.  A tax levy 
506.31  must be made for the payment of principal and interest on the 
506.32  bonds in accordance with section 475.61.  The sum of the tax 
506.33  levies under this section and section 124.2455 for each year 
506.34  must not exceed the amount of the district's total operating 
506.35  capital revenue for the year the initial debt service levies are 
506.36  certified.  The district's general education levy for each year 
507.1   must be reduced by the amount of the tax levies for debt service 
507.2   certified for each year for payment of the principal and 
507.3   interest on the bonds.  
507.4      (e) Notwithstanding paragraph (d), bonds issued by a 
507.5   district within the first five years following voter approval of 
507.6   a combination according to section 122.243, subdivision 2, must 
507.7   be paid off within 20 years of issuance.  All the other 
507.8   provisions and limitation of paragraph (d) apply. 
507.9      Sec. 27.  [124D.098] [COOPERATION AND COMBINATION REVENUE.] 
507.10     Subdivision 1.  [ELIGIBILITY.] A district is eligible for 
507.11  cooperation and combination revenue if it has a plan approved by 
507.12  the commissioner according to section 122.243 and it levied 
507.13  under subdivision 3 for taxes payable in 1995.  
507.14     Subd. 2.  [COOPERATION AND COMBINATION REVENUE.] 
507.15  Cooperation and combination revenue equals $100 times the pupil 
507.16  units served in the district.  For purposes of this section, 
507.17  pupil units served means the number of resident and nonresident 
507.18  pupil units in average daily membership receiving instruction in 
507.19  the cooperating or combined district.  A district may not 
507.20  receive revenue under this section if it levies under section 
507.21  124.912, subdivision 4.  
507.22     Subd. 3.  [COOPERATION AND COMBINATION LEVY.] To obtain 
507.23  cooperation and combination revenue, a district may levy an 
507.24  amount equal to the cooperation and combination revenue 
507.25  multiplied by the lesser of one or the following ratio: 
507.26     (1) the quotient derived by dividing the adjusted net tax 
507.27  capacity for the district in the year preceding the year the 
507.28  levy is certified by the actual pupil units in the district for 
507.29  the year to which the levy is attributable, to 
507.30     (2) the amount specified in subdivision 4 for the school 
507.31  year to which the levy is attributable. 
507.32     Subd. 4.  [INCREASING LEVY.] (a) For districts that did not 
507.33  enter into an agreement under section 122.541 at least three 
507.34  years before the date of a successful referendum held under 
507.35  section 122.243, subdivision 2, and that combine without 
507.36  cooperating, the amount in subdivision 3, clause (2), must be: 
508.1      (1) $4,707.50 for the first year of combination; and 
508.2      (2) $2,353.75 for the second year of combination. 
508.3      (b) For districts that entered into an agreement under 
508.4   section 122.541 at least three years before the date of a 
508.5   successful referendum held under section 122.243, subdivision 2, 
508.6   and combine without cooperating, the percentages in subdivision 
508.7   3, clause (2), must be: 
508.8      (1) $9,415 for the first year of combination; 
508.9      (2) $7,061.25 for the second year of combination; 
508.10     (3) $4,707.50 for the third year of combination; and 
508.11     (4) $2,353.75 for the fourth year of combination. 
508.12     (c) For districts that combine after one year of 
508.13  cooperation, the percentage in subdivision 3, clause (2), must 
508.14  be: 
508.15     (1) $9,415 for the first year of cooperation; 
508.16     (2) $7,061.25 for the first year of combination; 
508.17     (3) $4,707.50 for the second year of combination; and 
508.18     (4) $2,353.75 for the third year of combination. 
508.19     (d) For districts that combine after two years of 
508.20  cooperation, the percentage in subdivision 3, clause (2), must 
508.21  be: 
508.22     (1) $9,415 for the first year of cooperation; 
508.23     (2) $7,061.25 for the second year of cooperation; 
508.24     (3) $4,707.50 for the first year of combination; and 
508.25     (4) $2,353.75 for the second year of combination. 
508.26     Subd. 5.  [COOPERATION AND COMBINATION AID.] (a) Districts 
508.27  that did not enter into an agreement under section 122.541 at 
508.28  least three years before the date of a successful referendum 
508.29  held under section 122.243, subdivision 2, and combine without 
508.30  cooperating must receive cooperation and combination aid for the 
508.31  first two years of combination.  Cooperation and combination aid 
508.32  must not be paid after two years of combining. 
508.33     (b) Districts that entered into an agreement under section 
508.34  122.541 at least three years before the date of a successful 
508.35  referendum held under section 122.243, subdivision 2, and 
508.36  combine without cooperating must receive cooperation and 
509.1   combination aid for the first four years of combination.  Aid 
509.2   must not be paid after four years of combination. 
509.3      (c) Districts that combine after one year of cooperation 
509.4   must receive cooperation and combination aid for the first year 
509.5   of cooperation and three years of combination.  Aid must not be 
509.6   paid after three years of combining.  
509.7      (d) Districts that combine after two years of cooperation 
509.8   must receive cooperation and combination aid for the first two 
509.9   years of cooperation and the first two years of combination.  
509.10  Aid must not be paid after two years of combining. 
509.11     (e) In each case, cooperation and combination aid is equal 
509.12  to the difference between the cooperation and combination 
509.13  revenue and the cooperation and combination levy. 
509.14     Subd. 6.  [ADDITIONAL AID.] In addition to the aid in 
509.15  subdivision 5, districts must receive aid according to the 
509.16  following: 
509.17     (1) for districts that did not enter into an agreement 
509.18  under section 122.541 at least three years before the date of a 
509.19  successful referendum held under section 122.243, subdivision 2, 
509.20  and combine without cooperating, $100 times the pupil units 
509.21  served in the district in the first year of combination; or 
509.22     (2) for districts that combine after one or two years of 
509.23  cooperation, $100 times the actual pupil units served in each 
509.24  district for the first year of cooperation and $100 times the 
509.25  actual pupil units served in the combined district for the first 
509.26  year of combination; or 
509.27     (3) for districts that entered into an agreement under 
509.28  section 122.541 at least three years before the date of a 
509.29  successful referendum held under section 122.243, subdivision 2, 
509.30  and combine without cooperating, $100 times the pupil units 
509.31  served in the combined district for the first two years of 
509.32  combination. 
509.33     Subd. 7.  [PROPORTIONAL AID.] If a district does not levy 
509.34  the entire amount permitted under subdivision 3, the aid in 
509.35  subdivisions 5 and 6 must be reduced in proportion to the actual 
509.36  amount levied.  
510.1      Subd. 8.  [SUBSEQUENT DISTRICTS.] If a district 
510.2   subsequently cooperates or combines with districts that have 
510.3   previously received revenue under this section, the new district 
510.4   must receive revenue, according to subdivision 4 or 6, as 
510.5   follows: 
510.6      (1) if the districts previously received revenue under 
510.7   subdivisions 4, paragraph (a), 5, paragraph (a), and 6, clause 
510.8   (1), the new district will receive two years of revenue under 
510.9   those provisions; 
510.10     (2) if the districts previously received revenue under 
510.11  subdivisions 4, paragraph (b), (c), or (d), 5, paragraph (b), 
510.12  (c), or (d), and 6, clause (2) or (3), the new district must 
510.13  receive four years of revenue under the applicable provisions of 
510.14  subdivisions 5, 6, and this subdivision.  The previously 
510.15  cooperating or combined districts may not receive revenue, 
510.16  according to subdivision 6 or 10, as though parties to a new 
510.17  agreement. 
510.18     As of the effective date of a cooperation and combination 
510.19  agreement between districts that have previously received 
510.20  revenue under this section and a new district, the new group of 
510.21  districts may not receive revenue in excess of the limit 
510.22  specified in subdivision 10. 
510.23     Subd. 9.  [REVENUE LIMIT.] Revenue under this section must 
510.24  not exceed the revenue received by cooperating districts or a 
510.25  combined district with 2,000 pupil units served.  Revenue for 
510.26  cooperating districts subject to the limitation in this 
510.27  subdivision must be allocated according to the number of pupil 
510.28  units served in the districts. 
510.29     Subd. 10.  [USE OF REVENUE.] Revenue under this section 
510.30  must be used for expenses of cooperating and combining school 
510.31  districts, including, but not limited to: 
510.32     (1) secondary course offerings in communications, 
510.33  mathematics, science, social studies, foreign languages, 
510.34  physical education, health, and career education if the courses 
510.35  have specific learner outcomes; 
510.36     (2) participation by teachers in determining the learner 
511.1   outcomes; 
511.2      (3) staff in-service related to cooperation and 
511.3   combination; 
511.4      (4) any of the purposes set forth in sections 124.243, 
511.5   subdivision 6, clauses (3), (4), and (15), and 124.244, 
511.6   subdivision 4, clauses (2), (3), (4), (5), and (6), if the 
511.7   purposes are related to courses offered cooperatively; and 
511.8      (5) incentives for superintendents, principals, teachers, 
511.9   and other licensed and nonlicensed employees, such as early 
511.10  retirement, severance pay, and health insurance benefits. 
511.11     Subd. 11.  [JOINT PURPOSES.] Cooperating district revenue 
511.12  may only be used for purposes of joint efforts between 
511.13  cooperating districts.  The revenue must be in a separate 
511.14  account.  Boards must mutually determine cooperative 
511.15  expenditures. 
511.16     Subd. 12.  [FAILURE TO COMBINE.] A district has failed to 
511.17  combine if the commissioner disapproves of the plan according to 
511.18  section 122.243, subdivision 1, or if a third referendum fails 
511.19  under section 122.243, subdivision 2, or if the commissioner 
511.20  determines that the districts involved are not making sufficient 
511.21  progress toward combination. 
511.22     (a) If a district has failed to combine, cooperation and 
511.23  combination aid under subdivisions 5 and 6 must not be paid and 
511.24  the authority to levy under subdivision 4 ceases.  The 
511.25  commissioner shall reduce other aids due the district to recover 
511.26  an amount equal to the aid paid under subdivision 6 plus the 
511.27  difference between the aid paid under subdivision 5 and the aid 
511.28  that would have been paid if the revenue had been $50 times the 
511.29  pupil units served.  
511.30     (b) If a district has failed to combine, the authority to 
511.31  levy for reorganization operating debt under section 122.531, 
511.32  subdivision 4a, and for severance pay or early retirement 
511.33  incentives under subdivision 15 ceases. 
511.34     Subd. 13.  [CESSATION OF REVENUE.] At any time the 
511.35  districts cease cooperating, aid must not be paid and the 
511.36  authority to levy ceases.  If a district ceases to cooperate for 
512.1   all or a portion of a fiscal year for which a levy has been 
512.2   certified under subdivision 3, the department must adjust the 
512.3   next levy certified by the district by an amount in proportion 
512.4   to the part of the fiscal year that the district did not 
512.5   cooperate. 
512.6      Subd. 14.  [RETIREMENT AND SEVERANCE LEVY.] A cooperating 
512.7   or combined district that levied under subdivision 3 for taxes 
512.8   payable in 1995 may levy for severance pay or early retirement 
512.9   incentives for licensed and nonlicensed employees who retire 
512.10  early as a result of the cooperation or combination. 
512.11     Subd. 15.  [EXCLUSION FROM FUND BALANCE.] Revenue received 
512.12  by a district under this section for each year of cooperation 
512.13  and the first three years of combination must be excluded from 
512.14  the net unreserved operating fund balance, for the purposes of 
512.15  sections 124A.03, subdivision 3b, paragraph (c), and 124A.26.  
512.16     Sec. 28.  [124D.10] [CONSOLIDATION TRANSITION REVENUE.] 
512.17     Subdivision 1.  [ELIGIBILITY AND USE.] A district that has 
512.18  been reorganized after June 30, 1994, under section 122.23 is 
512.19  eligible for consolidation transition revenue. Revenue is equal 
512.20  to the sum of aid under subdivision 2 and levy under subdivision 
512.21  3.  Consolidation transition revenue may only be used according 
512.22  to this section.  Revenue must be used for the following 
512.23  purposes and may be distributed among these purposes at the 
512.24  discretion of the district: 
512.25     (1) to offer early retirement incentives as provided by 
512.26  section 122.23, subdivision 20; 
512.27     (2) to reduce operating debt as defined in section 121.915; 
512.28     (3) to enhance learning opportunities for students in the 
512.29  reorganized district; and 
512.30     (4) for other costs incurred in the reorganization. 
512.31     Revenue received and utilized under clause (3) or (4) may 
512.32  be expended for operating, facilities, and/or equipment.  
512.33  Revenue received under this section must not be included in the 
512.34  determination of the reduction under section 124A.26, 
512.35  subdivision 1.  
512.36     Subd. 2.  [AID.] (a) Consolidation transition aid is equal 
513.1   to $200 times the number of actual pupil units in the newly 
513.2   created district in the year of consolidation and $100 times the 
513.3   number of actual pupil units in the first year following the 
513.4   year of consolidation.  The number of pupil units used to 
513.5   calculate aid in either year shall not exceed 1,000 for 
513.6   districts consolidating July 1, 1994, and 1,500 for districts 
513.7   consolidating July 1, 1995, and thereafter.  
513.8      (b) If the total appropriation for consolidation transition 
513.9   aid for any fiscal year, plus any amount transferred under 
513.10  section 124.14, subdivision 7, is insufficient to pay all 
513.11  districts the full amount of aid earned, the department must 
513.12  first pay the districts in the first year following the year of 
513.13  consolidation the full amount of aid earned and distribute any 
513.14  remaining funds to the newly created districts in the first year 
513.15  of consolidation. 
513.16     Subd. 3.  [LEVY.] If the aid available in subdivision 2 is 
513.17  insufficient to cover the costs of the district under section 
513.18  122.23, subdivision 20, the district may levy the difference 
513.19  over a period of time not to exceed three years.  
513.20     Subd. 4.  [NEW DISTRICTS.] If a district consolidates with 
513.21  another district that has received aid under section 124.2725 or 
513.22  124.2726 within six years of the effective date of the new 
513.23  consolidation, only the pupil units in the district or districts 
513.24  not previously reorganized must be counted for aid purposes 
513.25  under subdivision 2.  If two or more districts consolidate and 
513.26  all districts received aid under subdivision 2 within six years 
513.27  of the effective date of the new consolidation, only one quarter 
513.28  of the pupil units in the newly created district must be used to 
513.29  determine aid under subdivision 2.  
513.30     Sec. 29.  [124D.104] [SCHOOL DISTRICT COOPERATION REVENUE.] 
513.31     Subdivision 1.  [DISTRICT COOPERATION REVENUE.] A 
513.32  district's cooperation revenue is equal to the greater of $67 
513.33  times the actual pupil units or $25,000. 
513.34     Subd. 2.  [DISTRICT COOPERATION LEVY.] To receive district 
513.35  cooperation revenue, a district may levy an amount equal to the 
513.36  district's cooperation revenue multiplied by the lesser of one, 
514.1   or the ratio of the quotient derived by dividing the adjusted 
514.2   net tax capacity of the district for the year preceding the year 
514.3   the levy is certified by the actual pupil units in the district 
514.4   for the school year to which the levy is attributable to $3,500. 
514.5      Subd. 3.  [DISTRICT COOPERATION AID.] A district's 
514.6   cooperation aid is the difference between its district 
514.7   cooperation revenue and its district cooperation levy.  If a 
514.8   district does not levy the entire amount permitted, aid must be 
514.9   reduced in proportion to the actual amount levied. 
514.10     Subd. 4.  [REVENUE USES.] (a) A district must place its 
514.11  district cooperation revenue in a reserved account and may only 
514.12  use the revenue to purchase goods and services from entities 
514.13  formed for cooperative purposes or to otherwise provide 
514.14  educational services in a cooperative manner. 
514.15     (b) A district that was a member of an intermediate school 
514.16  district organized pursuant to chapter 136D on July 1, 1994, 
514.17  must place its district cooperation revenue in a reserved 
514.18  account and must allocate a portion of the reserved revenue for 
514.19  instructional services from entities formed for cooperative 
514.20  services for special education programs and secondary vocational 
514.21  programs.  The allocated amount is equal to the levy made 
514.22  according to section 124.2727, subdivision 6, for taxes payable 
514.23  in 1994 divided by the actual pupil units in the intermediate 
514.24  school district for fiscal year 1995 times the number of actual 
514.25  pupil units in the school district in 1995.  The district must 
514.26  use 5/11 of the revenue for special education and 6/11 of the 
514.27  revenue for secondary vocational education.  The district must 
514.28  demonstrate that the revenue is being used to provide the full 
514.29  range of special education and secondary vocational programs and 
514.30  services available to each child served by the intermediate.  
514.31  The secondary vocational programs and service must meet the 
514.32  requirements established in an articulation agreement developed 
514.33  between the state board of education and the board of trustees 
514.34  of the Minnesota state colleges and universities. 
514.35     (c) A district that was not a member of an intermediate 
514.36  district organized under chapter 136D on July 1, 1994, must 
515.1   spend at least $9 per pupil unit of its district cooperation 
515.2   revenue on secondary vocational programs. 
515.3      Subd. 5.  [PRORATION.] (a) If the total appropriation 
515.4   available for district cooperation aid for any fiscal year, plus 
515.5   any amount transferred under section 124.14, subdivision 7, is 
515.6   insufficient to pay all districts the full amount of aid earned, 
515.7   the department must reduce each district's district cooperation 
515.8   revenue according to the calculations in paragraphs (b) to (d). 
515.9      (b) If there is insufficient district cooperation aid 
515.10  available, the department must recompute the district 
515.11  cooperation revenue by proportionally reducing the formula 
515.12  allowance and the revenue minimum to the levels that result in 
515.13  an aid entitlement, adjusted by the percentage in section 
515.14  124.195, subdivision 10, equal to the amount available.  The 
515.15  levy amounts must not be recomputed. 
515.16     (c) A district's proration aid reduction is equal to the 
515.17  lesser of zero, or the difference of the existing aid 
515.18  calculation minus the aid amount computed for the district under 
515.19  paragraph (b). 
515.20     (d) If a district's proration aid reduction is less than 
515.21  its revenue reduction, its district cooperation levy authority 
515.22  for the following year must be reduced by the amount of the 
515.23  difference between its revenue reduction and its aid reduction. 
515.24     Sec. 30.  [124D.108] [SPECIAL CONSOLIDATION AID.] 
515.25     Subdivision 1.  [ELIGIBILITY.] A district that reorganizes 
515.26  under section 122.23 or sections 122.241 to 122.248 effective on 
515.27  July 1, 1994, is eligible for special consolidation aid under 
515.28  this section.  A district may receive aid under this section for 
515.29  only three years. 
515.30     Subd. 2.  [AID CALCULATION.] Special consolidation aid for 
515.31  a reorganized district is calculated by computing the sum of: 
515.32     (1) the difference between the total amount of early 
515.33  childhood family education revenue under section 124.2711 
515.34  available to the districts involved in the reorganization in the 
515.35  fiscal year prior to the effective date of reorganization and 
515.36  the maximum amount of early childhood family education revenue 
516.1   available to the reorganized district in the current year; and 
516.2      (2) the difference between the total amount of community 
516.3   education revenue under section 124.2713 available to the 
516.4   districts involved in the reorganization in the fiscal year 
516.5   prior to the reorganization and the maximum amount of community 
516.6   education revenue available to the reorganized district in the 
516.7   current year. 
516.8      Subd. 3.  [AID AMOUNT.] In the fiscal year that the 
516.9   reorganization is effective, special combination aid is equal to 
516.10  the aid calculated under subdivision 2 times 100 percent.  In 
516.11  the fiscal year following the effective date of reorganization, 
516.12  special combination aid is equal to the aid calculated under 
516.13  subdivision 2 times 67 percent.  In the second fiscal year 
516.14  following the effective date of reorganization, special 
516.15  combination aid is equal to the aid calculated under subdivision 
516.16  2 times 33 percent.  
516.17     Sec. 31.  [124D.11] [CAPITAL FACILITIES GRANTS FOR 
516.18  COOPERATION AND COMBINATION.] 
516.19     Subdivision 1.  [ELIGIBILITY.] Two or more districts that 
516.20  have consolidated under section 122.23 or combined under 
516.21  sections 122.241 to 122.248, are eligible for a capital 
516.22  facilities grant of up to $200,000 for fiscal year 1995 and 
516.23  $100,000 thereafter under this section.  To qualify the 
516.24  following criteria must be met: 
516.25     (1) the proposed facility changes are part of the plan 
516.26  according to section 122.242, subdivision 10, or the plan 
516.27  adopted by the reorganized district according to section 
516.28  124.243, subdivision 1; 
516.29     (2) the changes proposed to a facility must be needed to 
516.30  accommodate changes in the educational program due to the 
516.31  reorganization; 
516.32     (3) the utilization of the facility for educational 
516.33  programs is at least 85 percent of capacity; and 
516.34     (4) the grant will be used only to remodel or improve 
516.35  existing facilities. 
516.36     Subd. 2.  [PROCEDURES.] The state board shall establish 
517.1   procedures and deadlines for the grant application.  The state 
517.2   board must review each application and may require modifications 
517.3   consistent with sections 122.241 to 122.248. 
517.4      Subd. 3.  [USE OF GRANT MONEY.] The grant money may be used 
517.5   for any capital expenditures specified in section 124.243, 
517.6   subdivision 6, clauses (4), (6), (7), (8), (9), and (10). 
517.7      Sec. 32.  [124D.114] [LOANS TO DISTRESSED DISTRICTS.] 
517.8      Financial aid to distressed districts is governed by the 
517.9   provisions of the maximum effort school aid law.  
517.10     Sec. 33.  [124D.118] [CITATION; MAXIMUM EFFORT SCHOOL AID 
517.11  LAW.] 
517.12     Sections 124.36 to 124.46 may be cited as the "maximum 
517.13  effort school aid law."  
517.14     Sec. 34.  [124D.12] [POLICY AND PURPOSE.] 
517.15     The rates of increase in school population in Minnesota and 
517.16  population shifts and economic changes in recent years, and 
517.17  anticipated in future years, have required and will require 
517.18  large expenditures for performing the duty of the state and its 
517.19  subdivisions to provide a general and uniform system of public 
517.20  schools.  The state policy has been to require these school 
517.21  costs to be borne primarily by the local subdivisions.  In most 
517.22  instances the local subdivisions have been, and will be, able to 
517.23  provide the required funds by local taxation as supplemented by 
517.24  the aids usually given to all districts from state income tax 
517.25  and other state aids.  There are, however, exceptional cases due 
517.26  to local conditions not found in most other districts where, 
517.27  either temporarily or over a considerable period of years, the 
517.28  costs will exceed the maximum which the local taxpayers can be 
517.29  reasonably expected to bear.  In some districts having bonds of 
517.30  several issues outstanding, debt service tax levy requirements 
517.31  are excessive for some years because of heavy bond principal 
517.32  payments accumulating in some of the years due to overlapping or 
517.33  short term issues.  The policy and purpose of sections 124.36 to 
517.34  124.46 is to utilize the credit of the state, to a limited 
517.35  degree, to relieve those school districts, but only those, where 
517.36  the maximum effort by the district is inadequate to provide the 
518.1   necessary money.  It is also the purpose of sections 124.36 to 
518.2   124.46 to promote efficient use of school buildings.  To that 
518.3   end, a district that receives a maximum effort loan is 
518.4   encouraged to design and use its facility to integrate social 
518.5   services and library services. 
518.6      Sec. 35.  [124D.124] [DEFINITIONS.] 
518.7      Subdivision 1.  [DEFINITIONS.] As used in sections 124.38 
518.8   to 124.46, the terms defined in this section shall have the 
518.9   following meanings: 
518.10     Subd. 2.  [DISTRICT.] "District" means any school district 
518.11  defined in the education code. 
518.12     Subd. 3.  [INDEBTEDNESS; DEBT.] "Indebtedness" or "debt" 
518.13  means the net debt of any district computed according to section 
518.14  475.51, subdivision 4, excluding loans made under sections 
518.15  124.36 to 124.46. 
518.16     Subd. 4.  [DEBT SERVICE FUND.] "Debt service fund" means 
518.17  the aggregate of all funds maintained by a district which are 
518.18  appropriated to payment of principal of and interest on its 
518.19  debts as required by chapter 475. 
518.20     Subd. 5.  [LEVY.] "Levy" means a district's net debt 
518.21  service levy after the reduction of debt service equalization 
518.22  aid under section 124.95, subdivision 5.  For taxes payable in 
518.23  1994 and later, each district's maximum effort debt service levy 
518.24  for purposes of subdivision 7, must be reduced by an equal 
518.25  number of percentage points if the commissioner determines that 
518.26  the levy reduction will not result in a statewide property tax 
518.27  as would be required under Minnesota Statutes 1992, section 
518.28  124.46, subdivision 3.  A district's levy that is adjusted under 
518.29  this section must not be reduced below 18.74 percent of the 
518.30  district's adjusted net tax capacity. 
518.31     Subd. 6.  [DEBT SERVICE LEVY.] "Debt service levy" means 
518.32  the levy for all debt service fund purposes in accordance with 
518.33  chapter 475. 
518.34     Subd. 7.  [REQUIRED DEBT SERVICE LEVY.] "Required debt 
518.35  service levy" means the total dollar amount needed to be 
518.36  included in the taxes levied by the district in any year for 
519.1   payment of interest and principal falling due on its debts prior 
519.2   to collection of the next ensuing year's debt service levy. 
519.3      Subd. 8.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 
519.4   effort debt service levy" means the lesser of: 
519.5      (1) a levy in whichever of the following amounts is 
519.6   applicable: 
519.7      (a) in any district receiving a debt service loan for a 
519.8   debt service levy payable in 1991 and thereafter, or granted a 
519.9   capital loan after January 1, 1990, a levy in a total dollar 
519.10  amount computed at a rate of 20 percent of adjusted net tax 
519.11  capacity for taxes payable in 1991 and thereafter; 
519.12     (b) in any district granted a debt service loan after July 
519.13  31, 1981, or granted a capital loan which is approved after July 
519.14  31, 1981, a levy in a total dollar amount computed as a tax rate 
519.15  of 13.08 percent on the adjusted gross tax capacity for taxes 
519.16  payable in 1990 or a tax rate of 18.42 percent on the adjusted 
519.17  net tax capacity for taxes payable in 1991 and thereafter; 
519.18     (c) in any district granted a debt service loan before 
519.19  August 1, 1981, or granted a capital loan which was approved 
519.20  before August 1, 1981, a levy in a total dollar amount computed 
519.21  as a tax rate of 12.26 percent on the adjusted gross tax 
519.22  capacity for taxes payable in 1990 or a tax rate of 17.17 
519.23  percent on the adjusted net tax capacity for taxes payable in 
519.24  1991 and thereafter, until and unless the district receives an 
519.25  additional loan; or 
519.26     (2) a levy in whichever of the following amounts is 
519.27  applicable: 
519.28     (a) in any district which received a debt service or 
519.29  capital loan from the state before January 1, 1965, a levy in a 
519.30  total dollar amount computed as 4.10 mills on the market value 
519.31  in each year, unless the district applies or has applied for an 
519.32  additional loan subsequent to January 1, 1965, or issues or has 
519.33  issued bonds on the public market, other than bonds refunding 
519.34  state loans, subsequent to January 1, 1967; 
519.35     (b) in any district granted a debt service or capital loan 
519.36  between January 1, 1965, and July 1, 1969, a levy in a total 
520.1   dollar amount computed as 5-1/2 mills on the market value in 
520.2   each year, until and unless the district receives an additional 
520.3   loan; 
520.4      (c) in any district granted a debt service or capital loan 
520.5   between July 1, 1969, and July 1, 1975, a levy in a total dollar 
520.6   amount computed as 6.3 mills on market value in each year until 
520.7   and unless the district has received an additional loan; 
520.8      (d) in any district for which a capital loan was approved 
520.9   prior to August 1, 1981, a levy in a total dollar amount equal 
520.10  to the sum of the amount of the required debt service levy and 
520.11  an amount which when levied annually will in the opinion of the 
520.12  commissioner be sufficient to retire the remaining interest and 
520.13  principal on any outstanding loans from the state within 30 
520.14  years of the original date when the capital loan was granted.  
520.15  The board in any district affected by the provisions of clause 
520.16  (2)(d) may elect instead to determine the amount of its levy 
520.17  according to the provisions of clause (1).  If a district's 
520.18  capital loan is not paid within 30 years because it elects to 
520.19  determine the amount of its levy according to the provisions of 
520.20  clause (2)(d), the liability of the district for the amount of 
520.21  the difference between the amount it levied under clause (2)(d) 
520.22  and the amount it would have levied under clause (1), and for 
520.23  interest on the amount of that difference, must not be satisfied 
520.24  and discharged pursuant to Minnesota Statutes 1988, or an 
520.25  earlier edition of Minnesota Statutes if applicable, section 
520.26  124.43, subdivision 4. 
520.27     Subd. 9.  [ADJUSTED NET TAX CAPACITY.] "Adjusted net tax 
520.28  capacity" means, as of any date, the net tax capacity of all 
520.29  taxable property most recently determined by the commissioner of 
520.30  revenue in accordance with the provisions of section 124.2131. 
520.31     Subd. 10.  [MARKET VALUE.] "Market value" means the value 
520.32  of all taxable property in the district on which its net debt 
520.33  limit is based as provided in section 475.53, subdivision 4.  
520.34     Subd. 11.  [FUND.] "Fund" means the "maximum effort school 
520.35  loan fund." 
520.36     Subd. 12.  [SCHOOL LOAN BONDS.] "School loan bonds" means 
521.1   bonds issued by the state under section 124.46 to support the 
521.2   fund and to refund bonds or certificates of indebtedness 
521.3   previously issued for that purpose. 
521.4      Subd. 13.  [NET PROCEEDS.] "Net proceeds" of bonds means 
521.5   the amounts received upon their sale less expenses incident to 
521.6   their issuance, sale, and delivery and the amount required to 
521.7   pay and redeem any bonds or certificates of indebtedness 
521.8   refunded thereby. 
521.9      Subd. 14.  [YEAR.] "Year" means the school year ending on 
521.10  and including June 30 in each calendar year. 
521.11     Sec. 36.  [124D.128] [NET DEBT; DETERMINATION.] 
521.12     In computing "net debt" and in determining whether any 
521.13  district is eligible for a state loan, state loans to any such 
521.14  district shall not be considered, notwithstanding the provisions 
521.15  of any other general or special law.  
521.16     Sec. 37.  [124D.13] [FUND ESTABLISHED; DIVISION INTO 
521.17  ACCOUNTS.] 
521.18     Subdivision 1.  [MAXIMUM EFFORT SCHOOL LOAN FUND.] A 
521.19  "maximum effort school loan fund" for administration of moneys 
521.20  to be received and disbursed as authorized and required by 
521.21  sections 124.36 to 124.46, must be maintained in the state 
521.22  treasury.  The fund must be divided into three accounts for the 
521.23  purposes specified in subdivisions 2, 3, 4, and 5.  
521.24     Subd. 2.  [DEBT SERVICE LOAN ACCOUNT.] A debt service loan 
521.25  account must be maintained out of which loans under section 
521.26  124.42 must be made.  All money appropriated to the fund by 
521.27  section 124.40 must be paid into this account initially.  
521.28     Subd. 3.  [CAPITAL LOAN ACCOUNT.] A capital loan account 
521.29  must be maintained out of which loans under section 124.431 must 
521.30  be made.  On November 1, all moneys in the debt service loan 
521.31  account in excess of those required for debt service loans then 
521.32  agreed to be made must be transferred to the capital loan 
521.33  account.  On July 1, all moneys in the capital loan account in 
521.34  excess of those required for capital loans theretofore agreed to 
521.35  be made must be transferred to the debt service loan account.  
521.36     Subd. 4.  [LOAN REPAYMENT ACCOUNT.] A loan repayment 
522.1   account must be maintained.  All principal and interest paid by 
522.2   districts on debt service loans and capital loans made under 
522.3   section 124.42 or 124.431 must be paid into the account.  The 
522.4   state's cost of administering the maximum effort school aid law 
522.5   must be paid out of this account, to an amount not exceeding 
522.6   $10,000 in any year.  As soon as possible in each year after the 
522.7   committee has determined the ratio existing between the correct 
522.8   market value of all taxable property in each district in the 
522.9   state and the "market value in money" of such property as 
522.10  recorded in accordance with section 270.13, the commissioner of 
522.11  revenue shall prepare a list of all such ratios.  The clerical 
522.12  costs preparing the list must be paid as a cost of 
522.13  administration of the maximum effort school aid law.  The 
522.14  documents division of the department of administration may 
522.15  publish and sell copies of the list.  The sums required to pay 
522.16  the principal of and interest on all school loan bonds as 
522.17  provided in section 124.46 must be transferred out of the loan 
522.18  repayment account into the state bond fund. 
522.19     Subd. 5.  [EXCESS MONEY IN LOAN REPAYMENT ACCOUNT.] The 
522.20  commissioner shall transfer from the loan repayment account into 
522.21  the debt service loan account all money deposited to the credit 
522.22  of the loan repayment account that is not required for the 
522.23  payment of principal and interest and costs as prescribed in 
522.24  subdivision 4 but is needed for debt service loans in the fiscal 
522.25  year beginning July 1, and those moneys are annually 
522.26  appropriated to that account for the purposes prescribed by the 
522.27  maximum effort school aid law.  Money deposited to the credit of 
522.28  the loan repayment account and not required for the transfers or 
522.29  for the payment of principal and interest due on school loan 
522.30  bonds may be invested and reinvested in securities which are 
522.31  general obligations of the United States or the state of 
522.32  Minnesota.  When all school loan bonds have been fully paid with 
522.33  interest accrued thereon, the balance remaining in the account 
522.34  must be transferred to the state bond fund. 
522.35     Sec. 38.  [124D.134] [APPROPRIATION.] 
522.36     Subdivision 1.  [APPROPRIATION.] In addition to all sums 
523.1   which have been or may hereafter be appropriated thereto by any 
523.2   law, the net proceeds of sale of any state school loan bonds 
523.3   authorized to be issued under section 124.46, and all income 
523.4   received from the investment of said net proceeds is hereby 
523.5   appropriated to the school loan bond account in the state bond 
523.6   fund. 
523.7      Subd. 2.  [REMAINING MONEY.] Any amounts remaining in the 
523.8   fund on July 1, including any unused portion of the 
523.9   appropriation made in subdivision 1, must be available for use 
523.10  by the commissioner in making further debt service loans and 
523.11  capital loans. 
523.12     Subd. 3.  [PRINCIPAL INTEREST PAYMENTS.] All payments of 
523.13  principal and interest on debt service notes or capital loan 
523.14  contracts, as received by the commissioner, are appropriated to 
523.15  the loan repayment account.  
523.16     Sec. 39.  [124D.138] [SCHOOL LOANS.] 
523.17     Subdivision 1.  [CONSIDERATION BY COMMISSIONER.] The 
523.18  commissioner shall receive and consider applications for and 
523.19  grant or deny loans under sections 124.36 to 124.46. 
523.20     Subd. 2.  [APPLICATION FORMS; RULES.] The commissioner, 
523.21  with the assistance of the attorney general or a designated 
523.22  assistant, shall prepare forms of applications for debt service 
523.23  loans and capital loans and instruments evidencing the loans.  
523.24  The state board must promulgate rules to facilitate the 
523.25  commissioner's operations in compliance with sections 124.36 to 
523.26  124.46.  The rules are subject to the procedure set forth in 
523.27  sections 14.02, 14.04 to 14.28, 14.38, 14.44 to 14.45, and 14.57 
523.28  to 14.62. 
523.29     Subd. 3.  [CLERK.] The commissioner may employ a clerk to 
523.30  administer the maximum effort school aid law.  The commissioner 
523.31  may fix the clerk's compensation, which must be paid out of the 
523.32  loan repayment account of the fund. 
523.33     Sec. 40.  [124D.14] [DEBT SERVICE LOANS.] 
523.34     Subdivision 1.  [QUALIFICATION; APPLICATION; AWARD; 
523.35  INTEREST.] A district in which the required levy for debt 
523.36  service in any year will exceed its maximum effort debt service 
524.1   levy by ten percent or by $5,000, whichever is less, is 
524.2   qualified for a debt service loan hereunder in an amount not 
524.3   exceeding the amount applied for, and not exceeding one percent 
524.4   of the net debt of the district, and not exceeding the 
524.5   difference between the required and the maximum effort debt 
524.6   service levy in that year.  Applications must be filed with the 
524.7   commissioner in each calendar year up to and including July 1.  
524.8   The commissioner shall determine whether the applicant is 
524.9   entitled to a loan and the amount thereof, and on or before 
524.10  October 1 shall certify to each applicant district the amount 
524.11  granted and its due date.  The commissioner shall notify the 
524.12  county auditor of each county in which the district is located 
524.13  that the amount certified is available and appropriated for 
524.14  payment of principal and interest on its outstanding bonds.  The 
524.15  auditors shall reduce by the loan amount the taxes otherwise 
524.16  leviable as the district's debt service levy on the tax rolls 
524.17  for that year.  Each debt service loan shall bear interest from 
524.18  its date at a rate equal to the average annual rate payable on 
524.19  Minnesota state school loan bonds most recently issued prior to 
524.20  the disbursement of the loan to the district, but in no event 
524.21  less than 3-1/2 percent per year on the principal amount from 
524.22  time to time remaining unpaid.  Interest is payable on December 
524.23  15 of the year following that in which the loan is received and 
524.24  annually thereafter. 
524.25     Subd. 2.  [NOTE.] Each debt service loan must be evidenced 
524.26  by a note executed on behalf of the district by the signatures 
524.27  of its chair or vice-chair and the school district clerk.  The 
524.28  note must be dated November 1 of the year in which executed, and 
524.29  must state its principal amount, interest rate, and that it is 
524.30  payable at the commissioner's office.  The note must have 
524.31  printed thereon, or the commissioner shall attach thereto, a 
524.32  grill for entry of the date and amount of each payment and 
524.33  allocations of each payment to accrued interest or principal.  
524.34  The note must also include a certificate to be executed by the 
524.35  county auditor of each county in which any portion of the 
524.36  district is situated, prior to the delivery of the note, stating 
525.1   that the county auditor has entered the debt service loan 
525.2   evidenced thereby in the auditor's bond register.  The notes 
525.3   must be delivered to the commissioner not later than November 15 
525.4   of the year in which executed.  The commissioner shall cause a 
525.5   record to be made and preserved showing the obligor district and 
525.6   the date and principal amount of each note.  
525.7      Subd. 3.  [WARRANT.] The commissioner shall issue to each 
525.8   district whose note has been so received a warrant on the debt 
525.9   service loan account of the maximum effort school loan fund, 
525.10  payable on presentation to the state treasurer out of any money 
525.11  in such account.  The warrant shall be issued by the 
525.12  commissioner in sufficient time to coincide with the next date 
525.13  on which the district is obligated to make principal or interest 
525.14  payments on its bonded debt in the ensuing year.  Interest must 
525.15  accrue from the date such warrant is issued.  The proceeds 
525.16  thereof must be used by the district to pay principal or 
525.17  interest on its bonded debt falling due in the ensuing year.  
525.18     Subd. 4.  [LEVY.] Each district receiving a debt service 
525.19  loan shall levy for debt service in that year and each year 
525.20  thereafter, until all its debts to the fund are paid, (a) the 
525.21  amount of its maximum effort debt service levy, or (b) the 
525.22  amount of its required debt service levy less the amount of any 
525.23  debt service loan in that year, whichever is greater.  Whenever 
525.24  the maximum effort debt service levy is greater the district 
525.25  must remit to the commissioner, within ten days after its 
525.26  receipt of the last regular tax distribution in the year in 
525.27  which it is collected, that portion of the maximum effort debt 
525.28  service tax collections, including penalties and interest, which 
525.29  exceeds the required debt service levy.  By September 1 the 
525.30  commissioner shall notify the county auditor of each county 
525.31  containing taxable property situated within the school district 
525.32  of the amount of the maximum effort debt service levy of the 
525.33  district for that year, and said county auditor or auditors 
525.34  shall extend upon the tax rolls an ad valorem tax upon all 
525.35  taxable property within the district in the aggregate amount so 
525.36  certified.  
526.1      Sec. 41.  [124D.144] [CAPITAL LOANS.] 
526.2      Subdivision 1.  [CAPITAL LOAN REQUESTS AND USES.] Capital 
526.3   loans are available only to qualifying districts.  Capital loans 
526.4   must not be used for the construction of swimming pools, ice 
526.5   arenas, athletic facilities, auditoriums, bus garages, or 
526.6   heating system improvements.  Proceeds of the loans may be used 
526.7   only for sites for education facilities and for acquiring, 
526.8   bettering, furnishing, or equipping education facilities.  
526.9   Contracts must be entered into within 18 months after the date 
526.10  on which each loan is granted.  For purposes of this section, 
526.11  "education facilities" includes space for Head Start programs 
526.12  and social service programs. 
526.13     Subd. 2.  [CAPITAL LOANS ELIGIBILITY.] Beginning July 1, 
526.14  1992, a district is not eligible for a capital loan unless the 
526.15  district's estimated net debt tax rate as computed by the 
526.16  commissioner after debt service equalization aid would be more 
526.17  than 20 percent of adjusted net tax capacity.  The estimate must 
526.18  assume a 20-year maturity schedule for new debt. 
526.19     Subd. 3.  [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 
526.20  district or a joint powers district that intends to apply for a 
526.21  capital loan must submit a proposal to the commissioner for 
526.22  review and comment according to section 121.15 by July 1 of an 
526.23  odd-numbered year.  The commissioner shall prepare a review and 
526.24  comment on the proposed facility, regardless of the amount of 
526.25  the capital expenditure required to construct the facility.  In 
526.26  addition to the information provided under section 121.15, 
526.27  subdivision 7, the commissioner shall consider the following 
526.28  criteria in determining whether to make a positive review and 
526.29  comment.  
526.30     (a) To grant a positive review and comment the commissioner 
526.31  shall determine that all of the following conditions are met: 
526.32     (1) the facilities are needed for pupils for whom no 
526.33  adequate facilities exist or will exist; 
526.34     (2) the district will serve, on average, at least 80 pupils 
526.35  per grade or is eligible for elementary or secondary sparsity 
526.36  revenue; 
527.1      (3) no form of cooperation with another district would 
527.2   provide the necessary facilities; 
527.3      (4) the facilities are comparable in size and quality to 
527.4   facilities recently constructed in other districts that have 
527.5   similar enrollments; 
527.6      (5) the facilities are comparable in size and quality to 
527.7   facilities recently constructed in other districts that are 
527.8   financed without a capital loan; 
527.9      (6) the district is projected to maintain or increase its 
527.10  average daily membership over the next five years or is eligible 
527.11  for elementary or secondary sparsity revenue; 
527.12     (7) the current facility poses a threat to the life, 
527.13  health, and safety of pupils, and cannot reasonably be brought 
527.14  into compliance with fire, health, or life safety codes; 
527.15     (8) the district has made a good faith effort, as evidenced 
527.16  by its maintenance expenditures, to adequately maintain the 
527.17  existing facility during the previous ten years and to comply 
527.18  with fire, health, and life safety codes and state and federal 
527.19  requirements for handicapped accessibility; 
527.20     (9) the district has made a good faith effort to encourage 
527.21  integration of social service programs within the new facility; 
527.22  and 
527.23     (10) evaluations by boards of adjacent districts have been 
527.24  received. 
527.25     (b) The commissioner may grant a negative review and 
527.26  comment if: 
527.27     (1) the state demographer has examined the population of 
527.28  the communities to be served by the facility and determined that 
527.29  the communities have not grown during the previous five years; 
527.30     (2) the state demographer determines that the economic and 
527.31  population bases of the communities to be served by the facility 
527.32  are not likely to grow or to remain at a level sufficient, 
527.33  during the next ten years, to ensure use of the entire facility; 
527.34     (3) the need for facilities could be met within the 
527.35  district or adjacent districts at a comparable cost by leasing, 
527.36  repairing, remodeling, or sharing existing facilities or by 
528.1   using temporary facilities; 
528.2      (4) the district plans do not include cooperation and 
528.3   collaboration with health and human services agencies and other 
528.4   political subdivisions; or 
528.5      (5) if the application is for new construction, an existing 
528.6   facility that would meet the district's needs could be purchased 
528.7   at a comparable cost from any other source within the area. 
528.8      Subd. 4.  [MULTIPLE DISTRICT PROPOSALS; REVIEW AND 
528.9   COMMENT.] In addition to the requirements of subdivision 2, the 
528.10  commissioner may use additional requirements to determine a 
528.11  positive review and comment on projects that are designed to 
528.12  serve more than one district.  These requirements may include:  
528.13     (1) reducing or increasing the number of districts that 
528.14  plan to use the facility; 
528.15     (2) location of the facility; and 
528.16     (3) formation of a joint powers agreement among the 
528.17  participating districts.  
528.18     Subd. 5.  [ADJACENT DISTRICT COMMENTS.] The district must 
528.19  present the proposed project to the board of each adjacent 
528.20  district at a public meeting of that district.  The board of an 
528.21  adjacent district must make a written evaluation of how the 
528.22  project will affect the future education and building needs of 
528.23  the adjacent district.  The board must submit the evaluation to 
528.24  the applying district within 30 days of the meeting. 
528.25     Subd. 6.  [DISTRICT APPLICATION FOR CAPITAL LOAN.] The 
528.26  school board of a district desiring a capital loan must adopt a 
528.27  resolution stating the amount proposed to be borrowed, the 
528.28  purpose for which the debt is to be incurred, and an estimate of 
528.29  the dates when the facilities for which the loan is requested 
528.30  will be contracted for and completed.  Applications for loans 
528.31  must be accompanied by a copy of the adopted board resolution 
528.32  and copies of the adjacent district evaluations.  The 
528.33  commissioner shall retain the evaluation as part of a permanent 
528.34  record of the district submitting the evaluation. 
528.35     Applications must be in the form and accompanied by the 
528.36  additional data required by the commissioner.  Applications must 
529.1   be received by the commissioner by September 1 of an 
529.2   odd-numbered year.  A district must resubmit an application each 
529.3   odd-numbered year.  Capital loan applications that do not 
529.4   receive voter approval or are not approved in law cancel July 1 
529.5   of the year following application.  When an application is 
529.6   received, the commissioner shall obtain from the commissioner of 
529.7   revenue the information in the revenue department's official 
529.8   records that is required to be used in computing the debt limit 
529.9   of the district under section 475.53, subdivision 4. 
529.10     Subd. 7.  [STATE BOARD REVIEW; DISTRICT PROPOSALS.] By 
529.11  November 1 of each odd-numbered year, the state board must 
529.12  review all applications for capital loans that have received a 
529.13  positive review and comment.  When reviewing applications, the 
529.14  state board must consider whether the criteria in subdivision 2 
529.15  have been met.  The state board may not approve an application 
529.16  if all of the required deadlines have not been met.  The state 
529.17  board may either approve or reject an application for a capital 
529.18  loan. 
529.19     Subd. 8.  [RECOMMENDATIONS OF THE COMMISSIONER.] The 
529.20  commissioner shall examine and consider applications for capital 
529.21  loans that have been approved by the state board of education, 
529.22  and promptly notify any district rejected by the state board of 
529.23  the state board's decision.  
529.24     The commissioner shall report each capital loan that has 
529.25  been approved by the state board and that has received voter 
529.26  approval to the education committees of the legislature by 
529.27  January 1 of each even-numbered year.  The commissioner must not 
529.28  report a capital loan that has not received voter approval.  The 
529.29  commissioner shall also report on the money remaining in the 
529.30  capital loan account and, if necessary, request that another 
529.31  bond issue be authorized. 
529.32     Subd. 9.  [LOAN AMOUNT LIMITS.] (a) A loan must not be 
529.33  recommended for approval for a district exceeding an amount 
529.34  computed as follows: 
529.35     (1) the amount requested by the district under subdivision 
529.36  5; 
530.1      (2) plus the aggregate principal amount of general 
530.2   obligation bonds of the district outstanding on June 30 of the 
530.3   year following the year the application was received, not 
530.4   exceeding the limitation on net debt of the district in section 
530.5   475.53, subdivision 4, or 305 percent of its adjusted net tax 
530.6   capacity as most recently determined, whichever is less; 
530.7      (3) less the maximum net debt permissible for the district 
530.8   on December 1 of the year the application is received, under the 
530.9   limitation in section 475.53, subdivision 4, or 305 percent of 
530.10  its adjusted net tax capacity as most recently determined, 
530.11  whichever is less; 
530.12     (4) less any amount by which the amount voted exceeds the 
530.13  total cost of the facilities for which the loan is granted.  
530.14     (b) The loan may be approved in an amount computed as 
530.15  provided in paragraph (a), clauses (1) to (3), subject to later 
530.16  reduction according to paragraph (a), clause (4). 
530.17     Subd. 10.  [LEGISLATIVE ACTION.] Each capital loan must be 
530.18  approved in a law. 
530.19     If the aggregate amount of the capital loans exceeds the 
530.20  amount that is or can be made available, the commissioner shall 
530.21  allot the available amount among any number of qualified 
530.22  applicant districts, according to the commissioner's judgment 
530.23  and discretion, based upon the districts' respective needs. 
530.24     Subd. 11.  [DISTRICT REFERENDUM.] After receipt of the 
530.25  review and comment on the project and before January 1 of the 
530.26  even-numbered year, the question authorizing the borrowing of 
530.27  money for the facilities must be submitted by the school board 
530.28  to the voters of the district at a regular or special election.  
530.29  The question submitted must state the total amount to be 
530.30  borrowed from all sources.  Approval of a majority of those 
530.31  voting on the question is sufficient to authorize the issuance 
530.32  of the obligations on public sale in accordance with chapter 
530.33  475.  The face of the ballot must include the following 
530.34  statement:  "APPROVAL OF THIS QUESTION DOES NOT GUARANTEE THAT 
530.35  THE SCHOOL DISTRICT WILL RECEIVE A CAPITAL LOAN FROM THE STATE.  
530.36  THE LOAN MUST BE APPROVED BY THE STATE LEGISLATURE AND IS 
531.1   DEPENDENT ON AVAILABLE FUNDING."  The district must mail to the 
531.2   commissioner a certificate by the clerk showing the vote at the 
531.3   election. 
531.4      Subd. 12.  [CONTRACT.] Each capital loan must be evidenced 
531.5   by a contract between the district and the state acting through 
531.6   the commissioner.  The contract must obligate the state to 
531.7   reimburse the district, from the maximum effort school loan 
531.8   fund, for eligible capital expenses for construction of the 
531.9   facility for which the loan is granted, an amount computed as 
531.10  provided in subdivision 8.  The commissioner must receive from 
531.11  the district a certified resolution of the board estimating the 
531.12  costs of construction and reciting that contracts for 
531.13  construction of the facilities for which the loan is granted 
531.14  have been awarded and that bonds of the district have been 
531.15  issued and sold in the amount necessary to pay all estimated 
531.16  costs of construction in excess of the amount of the loan.  The 
531.17  contract must obligate the district to repay the loan out of the 
531.18  excesses of its maximum effort debt service levy over its 
531.19  required debt service levy, including interest at a rate equal 
531.20  to the weighted average annual rate payable on Minnesota state 
531.21  school loan bonds issued for the project and disbursed to the 
531.22  districts on a reimbursement basis, but in no event less than 
531.23  3-1/2 percent per year on the principal amount from time to time 
531.24  unpaid.  The district must each year, as long as it is indebted 
531.25  to the state, levy for debt service (a) the amount of its 
531.26  maximum effort debt service levy or (b) the amount of its 
531.27  required debt service levy, whichever is greater, except as the 
531.28  required debt service levy may be reduced by a loan under 
531.29  section 124.42.  On November 20 of each year, each district 
531.30  having an outstanding capital loan must compute the excess 
531.31  amount in the debt redemption fund.  The commissioner shall 
531.32  prescribe the form and calculation to be used in computing the 
531.33  excess amount.  A completed copy of this form must be sent to 
531.34  the commissioner before December 1 of each year.  The 
531.35  commissioner may recompute the excess amount and shall promptly 
531.36  notify the district of the recomputed amount.  On December 15 of 
532.1   each year, the district must remit to the commissioner an amount 
532.2   equal to the excess amount in the debt redemption fund.  When 
532.3   the maximum effort debt service levy is greater, the district 
532.4   must remit to the commissioner within ten days after its receipt 
532.5   of the last regular tax distribution in each year, that part of 
532.6   the debt service tax collections, including penalties and 
532.7   interest that exceeded the required debt service levy.  The 
532.8   commissioner shall supervise the collection of outstanding 
532.9   accounts due the fund and may, by notice to the proper county 
532.10  auditor, require the maximum levy to be made as required in this 
532.11  subdivision.  Interest on capital loans must be paid on December 
532.12  15 of the year after the year the loan is granted and annually 
532.13  in later years.  By September 1, the commissioner shall notify 
532.14  the county auditor of each county containing taxable property 
532.15  situated within the district of the amount of the maximum effort 
532.16  debt service levy of the district for that year.  The county 
532.17  auditor or auditors shall extend upon the tax rolls an ad 
532.18  valorem tax upon all taxable property within the district in the 
532.19  aggregate amount so certified. 
532.20     Subd. 13.  [LOAN FORGIVENESS.] If any capital loan is not 
532.21  paid within 50 years after it is granted from maximum effort 
532.22  debt service levies in excess of required debt service levies, 
532.23  the liability of the district on the loan is satisfied and 
532.24  discharged and interest on the loan ceases. 
532.25     Subd. 14.  [PARTICIPATION BY COUNTY AUDITOR; RECORD OF 
532.26  CONTRACT; PAYMENT OF LOAN.] The district must file a copy of the 
532.27  capital loan contract with the county auditor of each county in 
532.28  which any part of the district is situated.  The county auditor 
532.29  shall enter the capital loan, evidenced by the contract, in the 
532.30  auditor's bond register.  The commissioner shall keep a record 
532.31  of each capital loan and contract showing the name and address 
532.32  of the district, the date of the contract, and the amount of the 
532.33  loan initially approved.  On receipt of the resolution required 
532.34  in subdivision 11, the commissioner shall issue warrants, which 
532.35  may be dispersed in accordance with the schedule in the 
532.36  contract, on the capital loan account for the amount that may be 
533.1   disbursed under subdivision 1.  Interest on each disbursement of 
533.2   the capital loan amount accrues from the date on which the state 
533.3   treasurer issues the warrant. 
533.4      Subd. 15.  [BOND SALE LIMITATIONS.] A district having an 
533.5   outstanding state loan must not issue and sell any bonds on the 
533.6   public market, except to refund state loans, unless it agrees to 
533.7   make the maximum effort debt service levy in each later year at 
533.8   the higher rate provided in section 124.38, subdivision 7, and 
533.9   unless it schedules the maturities of the bonds according to 
533.10  section 475.54, subdivision 2.  A district that refunds bonds at 
533.11  a lower interest rate may continue to make the maximum effort 
533.12  debt service levy in each later year at the current rate 
533.13  provided in section 124.38, subdivision 7, if the district can 
533.14  demonstrate to the commissioner's satisfaction that the 
533.15  district's repayments of the state loan will not be reduced 
533.16  below the previous year's level.  The district must report each 
533.17  sale to the commissioner. 
533.18     After a district's capital loan has been outstanding for 20 
533.19  years, the district must not issue bonds on the public market 
533.20  except to refund the loan. 
533.21     Sec. 42.  [124D.148] [PREPAYMENTS.] 
533.22     A district may at any time pay the entire principal or part 
533.23  thereof and interest then due on a note or contract held by the 
533.24  state, out of any moneys not needed for school purposes.  The 
533.25  district may issue and sell its refunding bonds in accordance 
533.26  with chapter 475, for such purpose, by actions of its school 
533.27  board and without the necessity of a vote by its electors, if 
533.28  such refunding bonds plus its net debt does not exceed the debt 
533.29  limit prescribed by chapter 475.  Any such refunding bonds may 
533.30  bear interest at a rate or rates higher or lower than the rate 
533.31  payable on the loan or loans refunded thereby.  
533.32     Sec. 43.  [124D.15] [APPLICATIONS OF PAYMENT.] 
533.33     The commissioner shall apply payments received from 
533.34  collections of maximum effort debt service levies in excess of 
533.35  required debt service levies of a district on its debt service 
533.36  notes and capital loan contracts as follows:  First, to payment 
534.1   of interest accrued on its notes, if any; second, to interest on 
534.2   its contracts, if any; third, toward principal of its notes, if 
534.3   any; and last, toward principal of its contracts, if any.  While 
534.4   more than one note or more than one contract is held, priority 
534.5   of payment of interest must be given to the one of earliest 
534.6   date, and after interest accrued on all notes is paid, similar 
534.7   priority shall be given in the application of any remaining 
534.8   amount to the payment of principal.  In any year when the 
534.9   receipts from a district are not sufficient to pay the interest 
534.10  accrued on any of its notes or contracts, the deficiency must be 
534.11  added to the principal, and the commissioner shall notify the 
534.12  district and each county auditor concerned of the new amount of 
534.13  principal of the note or contract.  
534.14     Sec. 44.  [124D.154] [ISSUANCE AND SALE OF BONDS.] 
534.15     Subdivision 1.  [CERTIFICATION.] The commissioner shall 
534.16  certify to the commissioner of finance the amount anticipated to 
534.17  be needed for debt service loans and capital loans to be made 
534.18  under the maximum effort school aid law prior to October 1 in 
534.19  the following year.  Each such certification of the commissioner 
534.20  shall also state an estimate of the dates and amounts the 
534.21  certified amount will be needed in the maximum effort school 
534.22  loan fund and an estimate as to the years and amounts in which 
534.23  payments on debt service loans and capital loans will be 
534.24  received.  
534.25     Subd. 2.  [ISSUANCE AND SALE OF BONDS; COMMISSIONER OF 
534.26  FINANCE.] Upon receipt of each such certification, subject to 
534.27  authorization as provided in subdivision 4, the commissioner of 
534.28  finance shall from time to time as needed issue and sell state 
534.29  of Minnesota school loan bonds in the aggregate principal amount 
534.30  stated in the commissioner's certificate, for the prompt and 
534.31  full payment of which, with the interest thereon, the full 
534.32  faith, credit, and taxing powers of the state are hereby 
534.33  irrevocably pledged.  The commissioner of finance shall credit 
534.34  the net proceeds of the sale of the bonds to the purposes for 
534.35  which they are appropriated by section 124.40, subdivision 1.  
534.36  The bonds shall be issued and sold at such price, in such 
535.1   manner, in such number of series, at such times, and in such 
535.2   form and denominations, shall bear such dates of issue and of 
535.3   maturity, either without option of prior redemption or subject 
535.4   to prepayment upon such notice and at such times and prices, 
535.5   shall bear interest at such rate or rates and payable at such 
535.6   intervals, shall be payable at such bank or banks within or 
535.7   without the state, with such provisions for registration, 
535.8   conversion, and exchange, and for the issuance of notes in 
535.9   anticipation of the sale and delivery of definitive bonds, and 
535.10  in accordance with such further provisions as the commissioner 
535.11  of finance shall determine subject to the limitations stated in 
535.12  this subdivision.  The bonds are not subject to the provisions 
535.13  of sections 14.02, 14.04 to 14.28, 14.38, 14.44 to 14.45, and 
535.14  14.57 to 14.62.  The maturity date must not be more than 20 
535.15  years after the date of issue of any bond and the principal 
535.16  amounts.  The due dates must conform as near as may be with the 
535.17  commissioner's estimates of dates and amounts of payments to be 
535.18  received on debt service and capital loans.  The bonds and any 
535.19  interest coupons attached to them must be executed by the 
535.20  commissioner of finance and attested by the state treasurer 
535.21  under their official seals.  The signatures of these officers 
535.22  and their seals may be printed, lithographed, stamped, engraved, 
535.23  or otherwise reproduced thereon.  Each bond must be 
535.24  authenticated by the manual signature on its face of one of the 
535.25  officers or a person authorized to sign on behalf of a bank or 
535.26  trust company designated by the commissioner to act as registrar 
535.27  or other authenticating agent.  The commissioner of finance is 
535.28  authorized and directed to ascertain and certify to purchasers 
535.29  of the bonds the performance and existence of all acts, 
535.30  conditions, and things necessary to make them valid and binding 
535.31  general obligations of the state of Minnesota in accordance with 
535.32  their terms.  
535.33     Subd. 3.  [SCHOOL LOAN BOND ACCOUNT.] The commissioner of 
535.34  finance shall maintain a separate school loan bond account in 
535.35  the state bond fund, showing all money transferred to that fund 
535.36  for the payment of school loan bonds and all income received 
536.1   from the investment of such money.  On December 1, the 
536.2   commissioner of finance shall transfer to the bond account as 
536.3   much of the money then on hand in the loan repayment account in 
536.4   the maximum effort school loan fund as will be sufficient, with 
536.5   the balance on hand in said bond account, to pay all principal 
536.6   and interest due and to become due within the next ensuing year 
536.7   and July 1 in the second ensuing year on school loan bonds 
536.8   issued and sold pursuant to this section.  If money is not 
536.9   available for the transfer in the full amount required, and if 
536.10  any principal or interest on school loan bonds should become due 
536.11  at any time when there is not on hand a sufficient amount from 
536.12  any of the sources herein appropriated for the payment thereof, 
536.13  the moneys must be paid out of the general fund in the state 
536.14  treasury according to section 16A.641, and the amount necessary 
536.15  therefor is hereby appropriated. 
536.16     Subd. 4.  [AUTHORITY FOR ISSUANCE OF BONDS.] Bonds shall be 
536.17  issued pursuant to this section only when authorized by a law 
536.18  specifying the purpose thereof and the maximum amount of the 
536.19  proceeds authorized to be expended for that purpose.  An act 
536.20  authorizing the issuance of bonds in the manner provided in this 
536.21  section, together with this section, constitute complete 
536.22  authority for the issue.  The bonds must not be subject to the 
536.23  restrictions or limitations contained in any other law.  Bonds 
536.24  issued pursuant to this section may be sold at public or private 
536.25  sale and are deemed "authorized securities" within the 
536.26  provisions of section 50.14. 
536.27     Sec. 45.  [124D.158] [BOND ISSUE; MAXIMUM EFFORT SCHOOL 
536.28  LOANS; 1965.] 
536.29     To provide money to be loaned to districts as agencies and 
536.30  political subdivisions of the state for the acquisition and 
536.31  betterment of public land and buildings and other public 
536.32  improvements of a capital nature, in the manner provided by the 
536.33  maximum effort school aid law, the state auditor is directed to 
536.34  issue and sell school loan bonds of the state of Minnesota in 
536.35  the maximum amount of $10,400,000.  Said amount is appropriated 
536.36  to the maximum effort school loan fund and must be expended 
537.1   under the direction of the school loan committee for the making 
537.2   of debt service loans and capital loans to districts as provided 
537.3   in sections 124.36 to 124.46.  These bonds must be issued and 
537.4   sold and provision for their payment made in accordance with 
537.5   section 124.46, and an amount sufficient to pay interest on the 
537.6   bonds to and including July 1 in the second year after the date 
537.7   of issue must be credited from the bond proceeds to the school 
537.8   loan bond account in the state bond fund.  Any expenses 
537.9   incidental to the sale, printing, execution, and delivery of the 
537.10  bonds, including, but without limitation, actual and necessary 
537.11  travel and subsistence expenses of state officers and employees 
537.12  for such purposes, must be paid from the maximum effort school 
537.13  loan fund, and the amounts necessary for the expenses are 
537.14  appropriated from the fund. 
537.15     Sec. 46.  [124D.16] [BOND ISSUE; MAXIMUM EFFORT SCHOOL 
537.16  LOANS; 1967.] 
537.17     To provide money to be loaned to school districts as 
537.18  agencies and political subdivisions of the state for the 
537.19  acquisition and betterment of public land and buildings and 
537.20  other public improvements of a capital nature, in the manner 
537.21  provided by the maximum effort school aid law, the state auditor 
537.22  is directed to issue and sell school loan bonds of the state of 
537.23  Minnesota in the maximum amount of $2,800,000, in addition to 
537.24  the bonds already authorized for this purpose, said amount is 
537.25  appropriated to the maximum effort school loan fund and must be 
537.26  expended under the direction of the school loan committee for 
537.27  the making of debt service loans and capital loans to districts 
537.28  as provided in sections 124.36 to 124.46.  These bonds must be 
537.29  issued and sold and provision for their payment made in 
537.30  accordance with section 124.46, and an amount sufficient to pay 
537.31  interest on the bonds to and including July 1 in the second year 
537.32  after the date of issue must be credited from the bond proceeds 
537.33  to the school loan bond account in the state bond fund.  Any 
537.34  expenses incidental to the sale, printing, execution, and 
537.35  delivery of the bonds, including, but without limitation, actual 
537.36  and necessary travel and subsistence expenses of state officers 
538.1   and employees for such purposes, must be paid from the maximum 
538.2   effort school loan fund, and the amounts necessary for the 
538.3   expenses are appropriated from the fund.  
538.4      Sec. 47.  [124D.164] [BOND ISSUE; MAXIMUM EFFORT SCHOOL 
538.5   LOANS; 1969.] 
538.6      To provide money to be loaned to districts as agencies and 
538.7   political subdivisions of the state for the acquisition and 
538.8   betterment of public land and buildings and other public 
538.9   improvements of a capital nature, in the manner provided by the 
538.10  maximum effort school aid law, the commissioner of finance is 
538.11  directed to issue and sell school loan bonds of the state of 
538.12  Minnesota in the maximum amount of $20,000,000, in addition to 
538.13  the bonds already authorized for this purpose, said amount is 
538.14  appropriated to the maximum effort school loan fund and must be 
538.15  expended under the direction of the commissioner for the making 
538.16  of debt service loans and capital loans to districts as provided 
538.17  in sections 124.36 to 124.46.  These bonds must be issued and 
538.18  sold and provision for their payment made in accordance with 
538.19  section 124.46, and an amount sufficient to pay interest on the 
538.20  bonds to and including July 1 in the second year after the date 
538.21  of issue must be credited from the bond proceeds to the school 
538.22  loan bond account in the state bond fund.  Any expenses 
538.23  incidental to the sale, printing, execution, and delivery of the 
538.24  bonds, including, but without limitation, actual and necessary 
538.25  travel and subsistence expenses of state officers and employees 
538.26  for those purposes, must be paid from the maximum effort school 
538.27  loan fund, and the amounts necessary for the expenses are 
538.28  appropriated from it. 
538.29     Sec. 48.  [124D.168] [BOND ISSUE; MAXIMUM EFFORT SCHOOL 
538.30  LOANS; 1980.] 
538.31     To provide money to be loaned to school districts as 
538.32  agencies and political subdivisions of the state for the 
538.33  acquisition and betterment of public land and buildings and 
538.34  other public improvements of a capital nature, in the manner 
538.35  provided by the maximum effort school aid law, the commissioner 
538.36  of finance is directed to issue and sell school loan bonds of 
539.1   the state of Minnesota in the maximum amount of $20,000,000, in 
539.2   addition to the bonds already authorized for this purpose.  Said 
539.3   amount is appropriated to the maximum effort school loan fund 
539.4   and must be expended under the direction of the commissioner for 
539.5   the making of debt service loans and capital loans to districts 
539.6   as provided in sections 124.36 to 124.46.  These bonds must be 
539.7   issued and sold and provision for their payment made in 
539.8   accordance with section 124.46, and an amount sufficient to pay 
539.9   interest on the bonds to and including July 1 in the second year 
539.10  after the date of issue must be credited from the bond proceeds 
539.11  to the school loan bond account in the state bond fund.  Any 
539.12  expenses incidental to the sale, printing, execution, and 
539.13  delivery of the bonds, including, but without limitation, actual 
539.14  and necessary travel and subsistence expenses of state officers 
539.15  and employees for those purposes, must be paid from the maximum 
539.16  effort school loan fund, and the amounts necessary for the 
539.17  expenses are appropriated from it. 
539.18     Sec. 49.  [124D.17] [BOND ISSUE; MAXIMUM EFFORT SCHOOL 
539.19  LOANS; 1988.] 
539.20     To provide money to be loaned to districts as agencies and 
539.21  political subdivisions of the state to acquire and to better 
539.22  public land and buildings and other public improvements of a 
539.23  capital nature, in the manner provided by the maximum effort 
539.24  school aid law, the commissioner of finance shall issue and sell 
539.25  school loan bonds of the state of Minnesota in the maximum 
539.26  amount of $22,000,000, in addition to the bonds already 
539.27  authorized for this purpose.  The same amount is appropriated to 
539.28  the maximum effort school loan fund and must be spent under the 
539.29  direction of the commissioner to make debt service loans and 
539.30  capital loans to districts as provided in sections 124.36 to 
539.31  124.46.  The bonds must be issued and sold and provision for 
539.32  their payment must be made according to section 124.46.  
539.33  Expenses incidental to the sale, printing, execution, and 
539.34  delivery of the bonds, including, but without limitation, actual 
539.35  and necessary travel and subsistence expenses of state officers 
539.36  and employees for those purposes, must be paid from the maximum 
540.1   effort school loan fund, and the money necessary for the 
540.2   expenses is appropriated from that fund. 
540.3      Sec. 50.  [124D.174] [BOND ISSUE; MAXIMUM EFFORT SCHOOL 
540.4   LOANS; 1990.] 
540.5      To provide money to be loaned to districts as agencies and 
540.6   political subdivisions of the state to acquire and to better 
540.7   public land and buildings and other public improvements of a 
540.8   capital nature, in the manner provided by the maximum effort 
540.9   school aid law, the commissioner of finance shall issue and sell 
540.10  school loan bonds of the state of Minnesota in the maximum 
540.11  amount of $23,000,000, in addition to the bonds already 
540.12  authorized for this purpose.  The bonds must be issued and sold 
540.13  and provision for their payment must be made according to 
540.14  section 124.46.  Expenses incidental to the sale, printing, 
540.15  execution, and delivery of the bonds, including, but without 
540.16  limitation, actual and necessary travel and subsistence expenses 
540.17  of state officers and employees for those purposes, must be paid 
540.18  from the maximum effort school loan fund, and the money 
540.19  necessary for the expenses is appropriated from that fund. 
540.20     Sec. 51.  [124D.178] [BOND ISSUE; MAXIMUM EFFORT SCHOOL 
540.21  LOANS; 1991.] 
540.22     To provide money to be loaned to districts as agencies and 
540.23  political subdivisions of the state to acquire and to better 
540.24  public land and buildings and other public improvements of a 
540.25  capital nature, in the manner provided by the maximum effort 
540.26  school aid law, the commissioner of finance shall issue and sell 
540.27  school loan bonds of the state of Minnesota in the maximum 
540.28  amount of $45,065,000, in addition to the bonds already 
540.29  authorized for this purpose.  The same amount is appropriated to 
540.30  the maximum effort school loan fund and must be spent under the 
540.31  direction of the commissioner to make debt service loans and 
540.32  capital loans to districts as provided in sections 124.36 to 
540.33  124.46.  The bonds must be issued and sold and provision for 
540.34  their payment must be made according to section 124.46.  
540.35  Expenses incidental to the sale, printing, execution, and 
540.36  delivery of the bonds, including, but without limitation, actual 
541.1   and necessary travel and subsistence expenses of state officers 
541.2   and employees for those purposes, must be paid from the maximum 
541.3   effort school loan fund, and the money necessary for the 
541.4   expenses is appropriated from that fund. 
541.5      Sec. 52.  [124D.18] [CITATION.] 
541.6      Sections 124.492 to 124.495 may be cited as the 
541.7   "cooperative secondary facilities grant act."  
541.8      Sec. 53.  [124D.184] [POLICY AND PURPOSE.] 
541.9      Because of the rates of decline in school-aged population, 
541.10  population shifts and economic changes that the state has 
541.11  experienced in recent years and anticipates in future years, and 
541.12  because in some instances local districts have not, and will not 
541.13  be able to provide the required construction funds through local 
541.14  property taxes, the purpose of the cooperative secondary 
541.15  facilities grant program is to provide an incentive to encourage 
541.16  cooperation in making available to all secondary students those 
541.17  educational programs, services and facilities that are most 
541.18  efficiently and effectively provided by a cooperative effort of 
541.19  several school districts.  The policy and purpose of sections 
541.20  124.493 to 124.495 is to use the credit of the state, to a 
541.21  limited degree, to provide grants to cooperating groups of 
541.22  districts to improve and expand the educational opportunities 
541.23  and facilities available to their secondary students. 
541.24     Sec. 54.  [124D.188] [APPROVAL AUTHORITY; APPLICATION 
541.25  FORMS.] 
541.26     Subdivision 1.  [APPROVAL BY COMMISSIONER.] To the extent 
541.27  money is available, the commissioner may approve projects from 
541.28  applications submitted under section 124.494.  The grant money 
541.29  must be used only to acquire, construct, remodel or improve the 
541.30  building or site of a cooperative secondary facility under 
541.31  contracts to be entered into within 15 months after the date on 
541.32  which each grant is awarded. 
541.33     Subd. 2.  [COOPERATION AND COMBINATION.] Districts that 
541.34  receive a cooperative secondary facilities grant after May 1, 
541.35  1991, shall: 
541.36     (1) submit a plan as set forth in section 122.242 for 
542.1   approval by the state board of education; and 
542.2      (2) hold a referendum on the question of combination no 
542.3   later than four years after a grant is awarded under subdivision 
542.4   1. 
542.5      The districts are eligible for cooperation and combination 
542.6   revenue under section 124.2725.  
542.7      Sec. 55.  [124D.19] [GRANT APPLICATION PROCESS.] 
542.8      Subdivision 1.  [QUALIFICATION.] Any group of districts 
542.9   that meets the criteria required under subdivision 2 may apply 
542.10  for an incentive grant for construction of a new secondary 
542.11  facility or for remodeling and improving an existing secondary 
542.12  facility.  A grant for new construction must not exceed the 
542.13  lesser of $5,000,000 or 75 percent of the approved construction 
542.14  costs of a cooperative secondary education facility.  A grant 
542.15  for remodeling and improving an existing facility must not 
542.16  exceed $200,000. 
542.17     Subd. 2.  [REVIEW BY COMMISSIONER.] (a) A group of 
542.18  districts that submits an application for a grant must submit a 
542.19  proposal to the commissioner for review and comment under 
542.20  section 121.15.  The commissioner shall prepare a review and 
542.21  comment on the proposed facility by July 1 of an odd-numbered 
542.22  year, regardless of the amount of the capital expenditure 
542.23  required to acquire, construct, remodel or improve the secondary 
542.24  facility.  The commissioner shall not approve an application for 
542.25  an incentive grant for any secondary facility unless the 
542.26  facility receives a favorable review and comment under section 
542.27  121.15 and the following criteria are met: 
542.28     (1) a minimum of two or more districts, with kindergarten 
542.29  to grade 12 enrollments in each district of no more than 1,200 
542.30  pupils, enter into a joint powers agreement; 
542.31     (2) a joint powers board representing all participating 
542.32  districts is established under section 471.59 to govern the 
542.33  cooperative secondary facility; 
542.34     (3) the planned secondary facility will result in the joint 
542.35  powers district meeting the requirements of Minnesota Rules, 
542.36  parts 3500.2010 and 3500.2110; 
543.1      (4) at least 198 pupils would be served in grades 10 to 12, 
543.2   264 pupils would be served in grades 9 to 12, or 396 pupils 
543.3   would be served in grades 7 to 12; 
543.4      (5) no more than one superintendent is employed by the 
543.5   joint powers board as a result of the cooperative secondary 
543.6   facility agreement; 
543.7      (6) a statement of need is submitted, that may include 
543.8   reasons why the current secondary facilities are inadequate, 
543.9   unsafe or inaccessible to the handicapped; 
543.10     (7) an educational plan is prepared, that includes input 
543.11  from both community and professional staff; 
543.12     (8) a combined seniority list for all participating 
543.13  districts is developed by the joint powers board; 
543.14     (9) an education program is developed that provides for 
543.15  more learning opportunities and course offerings, including the 
543.16  offering of advanced placement courses, for students than is 
543.17  currently available in any single member district; 
543.18     (10) a plan is developed for providing instruction of any 
543.19  resident students in other districts when distance to the 
543.20  secondary education facility makes attendance at the facility 
543.21  unreasonably difficult or impractical; and 
543.22     (11) the joint powers board established under clause (2) 
543.23  discusses with technical colleges located in the area how 
543.24  vocational education space in the cooperative secondary facility 
543.25  could be jointly used for secondary and post-secondary purposes. 
543.26     (b) To the extent possible, the joint powers board is 
543.27  encouraged to provide for severance pay or for early retirement 
543.28  incentives under section 125.611, for any teacher or 
543.29  administrator, as defined under section 125.12, subdivision 1, 
543.30  who is placed on unrequested leave as a result of the 
543.31  cooperative secondary facility agreement. 
543.32     (c) For the purpose of paragraph (a), clause (8), each 
543.33  district must be considered to have started school each year on 
543.34  the same date. 
543.35     (d) The districts may develop a plan that provides for the 
543.36  location of social service, health, and other programs serving 
544.1   pupils and community residents within the cooperative secondary 
544.2   facility.  The commissioner shall consider this plan when 
544.3   preparing a review and comment on the proposed facility. 
544.4      (e) The districts must schedule and conduct a meeting on 
544.5   library services.  The school districts, in cooperation with the 
544.6   regional public library system and its appropriate member 
544.7   libraries, must discuss the possibility of including jointly 
544.8   operated library services at the cooperative secondary facility. 
544.9      (f) The board of a district that has reorganized under 
544.10  section 122.23 or 122.243 and that is applying for a grant for 
544.11  remodeling or improving an existing facility may act in the 
544.12  place of a joint powers board to meet the criteria of this 
544.13  subdivision. 
544.14     Subd. 3.  [REORGANIZING DISTRICTS.] A district that is a 
544.15  member of a joint powers board established under subdivision 2 
544.16  and that is planning to reorganize under section 122.21, 122.22, 
544.17  or 122.23 must notify the joint powers board one year in advance 
544.18  of the effective date of the reorganization.  Notwithstanding 
544.19  section 471.59 or any other law to the contrary, the board of a 
544.20  district that reorganizes under section 122.21, 122.22, or 
544.21  122.23 may appoint representatives to the joint powers board who 
544.22  will serve on the joint powers board for two years after the 
544.23  effective date of the reorganization if authorized in the 
544.24  agreement establishing the joint powers board to govern the 
544.25  cooperative secondary facility.  These representatives shall 
544.26  have the same powers as representatives of any other school 
544.27  district under the joint powers agreement. 
544.28     Subd. 4.  [DISTRICT PROCEDURES.] A joint powers board of a 
544.29  secondary district established under subdivision 2 or a school 
544.30  board of a reorganized district that intends to apply for a 
544.31  grant must adopt a resolution stating the proposed costs of the 
544.32  project, the purpose for which the costs are to be incurred, and 
544.33  an estimate of the dates when the facilities for which the grant 
544.34  is requested will be contracted for and completed.  Applications 
544.35  for the state grants must be accompanied by (a) a copy of the 
544.36  resolution, (b) a certificate by the clerk and treasurer of the 
545.1   joint powers board showing the current outstanding indebtedness 
545.2   of each member district, and (c) a certificate by the county 
545.3   auditor of each county in which a portion of the joint powers 
545.4   district lies showing the information in the auditor's official 
545.5   records that is required to be used in computing the debt limit 
545.6   of the district under section 475.53, subdivision 4.  The 
545.7   clerk's and treasurer's certificate must show, as to each 
545.8   outstanding bond issue of each member district, the amount 
545.9   originally issued, the purpose for which issued, the date of 
545.10  issue, the amount remaining unpaid as of the date of the 
545.11  resolution, and the interest rates and due dates and amounts of 
545.12  principal thereon.  Applications and necessary data must be in 
545.13  the form prescribed by the commissioner and the rules of the 
545.14  state board of education.  Applications must be received by the 
545.15  commissioner by September 1 of an odd-numbered year.  When an 
545.16  application is received, the commissioner shall obtain from the 
545.17  commissioner of revenue, and from the public utilities 
545.18  commission when required, the information in their official 
545.19  records that is required to be used in computing the debt limit 
545.20  of the joint powers district under section 475.53, subdivision 4.
545.21     Subd. 5.  [AWARD OF GRANTS.] By November 1 of the 
545.22  odd-numbered year, the commissioner shall examine and consider 
545.23  all applications for grants, and if any district is found not 
545.24  qualified, the commissioner shall promptly notify that board.  
545.25     A grant award is subject to verification by the district as 
545.26  specified in subdivision 6.  A grant award for a new facility 
545.27  must not be made until the site of the secondary facility has 
545.28  been determined.  A grant award to remodel or improve an 
545.29  existing facility must not be made until the districts have 
545.30  reorganized.  If the total amount of the approved applications 
545.31  exceeds the amount that is or can be made available, the 
545.32  commissioner shall allot the available amount equally between 
545.33  the approved applicant districts.  The commissioner shall 
545.34  promptly certify to each qualified district the amount, if any, 
545.35  of the grant awarded to it. 
545.36     Subd. 6.  [COLLOCATION GRANT.] A group of districts that 
546.1   receives a grant for a new facility under subdivision 4 is also 
546.2   eligible to receive an additional grant in the amount of 
546.3   $1,000,000.  To receive the additional grant, the group of 
546.4   districts must develop a plan under subdivision 2, paragraph 
546.5   (d), that provides for the location of a significant number of 
546.6   noneducational student and community service programs within the 
546.7   cooperative secondary facility. 
546.8      Subd. 7.  [REFERENDUM; BOND ISSUE.] Within 180 days after 
546.9   being awarded a grant for a new facility under subdivision 4, 
546.10  the joint powers board must submit the question of authorizing 
546.11  the borrowing of funds for the secondary facility to the voters 
546.12  of the joint powers district at a special election, which may be 
546.13  held in conjunction with the annual election of the school board 
546.14  members of the member districts.  The question submitted must 
546.15  state the total amount of funding needed from all sources.  A 
546.16  majority of those voting in the affirmative on the question is 
546.17  sufficient to authorize the joint powers board to accept the 
546.18  grant and to issue the bonds on public sale in accordance with 
546.19  chapter 475.  The clerk of the joint powers board must certify 
546.20  the vote of the bond election to the commissioner.  If the 
546.21  question is approved by the voters, the commissioner shall 
546.22  notify the approved applicant districts that the grant amount 
546.23  certified under subdivision 4 is available and appropriated for 
546.24  payment under this subdivision.  If a majority of those voting 
546.25  on the question do not vote in the affirmative, the grant must 
546.26  be canceled. 
546.27     Subd. 8.  [CONTRACT.] Each grant must be evidenced by a 
546.28  contract between the board and the state acting through the 
546.29  commissioner.  The contract obligates the state to pay to the 
546.30  board an amount computed according to subdivision 4, and 
546.31  according to a schedule, and terms and conditions acceptable to 
546.32  the commissioner of finance. 
546.33     Subd. 9.  [CONSOLIDATION.] A group of districts that 
546.34  operates a cooperative secondary facility that was acquired, 
546.35  constructed, remodeled, or improved under this section and 
546.36  implements consolidation proceedings according to section 
547.1   122.23, may propose a temporary school board structure in the 
547.2   petition or resolution required under section 122.23, 
547.3   subdivision 2.  The districts may propose the number of existing 
547.4   school board members of each district to become members of the 
547.5   board of the consolidated district and a method to gradually 
547.6   reduce the membership to six or seven.  The proposal must be 
547.7   approved, disapproved, or modified by the state board of 
547.8   education.  The election requirements of section 122.23, 
547.9   subdivision 18, do not apply to a proposal approved by the state 
547.10  board.  Elections conducted after the effective date of the 
547.11  consolidation are subject to the Minnesota election law. 
547.12     Sec. 56.  [124D.194] [LEVY FOR SEVERANCE PAY.] 
547.13     A joint powers board established under section 124.494 may 
547.14  make a levy to provide severance pay and early retirement 
547.15  incentives under section 125.611, for any teacher as defined 
547.16  under section 125.12, subdivision 1, who is placed on 
547.17  unrequested leave as a result of the cooperative secondary 
547.18  facility agreement.  A joint powers board making a levy must 
547.19  certify to each participating district tax levies sufficient to 
547.20  raise the amount necessary to provide the district's portion of 
547.21  severance pay and early retirement incentives.  The tax levy 
547.22  certified to each district must be expressed as a local tax 
547.23  rate, that, when applied to the adjusted net tax capacity of all 
547.24  of the participating districts raises the amount necessary to 
547.25  provide severance pay and early retirement incentives.  Each 
547.26  participating school district must include the levy in the next 
547.27  tax roll which it shall certify to the county auditor, and must 
547.28  remit the collections of the levy to the joint powers board. 
547.29     Sec. 57.  [124D.198] [TRANSPORTATION.] 
547.30     The joint powers board representing the districts that have 
547.31  entered into a joint powers agreement under section 124.494, 
547.32  subdivision 2, or the boards of the districts that are 
547.33  contiguous to the districts that have entered into a joint 
547.34  powers agreement, may transport nonresident pupils without 
547.35  charge between a school within the district and a point within a 
547.36  district that has entered into a joint powers agreement chosen 
548.1   by the pupil on a route traveled by a bus from the district. 
548.2      Sec. 58.  [124D.20] [STATE BOND AUTHORIZATION.] 
548.3      To provide money for the cooperative secondary facilities 
548.4   grant program, the commissioner of finance, upon the request of 
548.5   the commissioner of children, families, and learning, shall 
548.6   issue and sell bonds of the state up to the amount of 
548.7   $14,000,000 in the manner, upon the terms and with the effect 
548.8   prescribed by sections 16A.631 to 16A.675 and the Minnesota 
548.9   Constitution, article XI, sections 4 to 7. 
548.10     Sec. 59.  [124D.204] [LUNCH AID; FOOD SERVICE ACCOUNTING.] 
548.11     Subdivision 1.  [SCHOOL LUNCH AID COMPUTATION.] Each school 
548.12  year, the state must pay districts participating in the national 
548.13  school lunch program the amount of 6.5 cents for each full paid, 
548.14  reduced, and free student lunch served to students in the 
548.15  district.  
548.16     Subd. 2.  [APPLICATION.] School districts shall apply to 
548.17  the department for this payment on forms provided by the 
548.18  department. 
548.19     Subd. 3.  [SCHOOL FOOD SERVICE FUND.] (a) The expenses 
548.20  described in this subdivision must be recorded as provided in 
548.21  this subdivision. 
548.22     (b) In each district, the expenses for a school food 
548.23  service program for pupils must be attributed to a school food 
548.24  service fund.  Under a food service program, the school food 
548.25  service may prepare or serve milk, meals, or snacks in 
548.26  connection with school or community service activities. 
548.27     (c) Revenues and expenditures for food service activities 
548.28  must be recorded in the food service fund.  The costs of 
548.29  processing applications, accounting for meals, preparing and 
548.30  serving food, providing kitchen custodial services, and other 
548.31  expenses involving the preparing of meals or the kitchen section 
548.32  of the lunchroom may be charged to the food service fund or to 
548.33  the general fund of the district.  The costs of lunchroom 
548.34  supervision, lunchroom custodial services, lunchroom utilities, 
548.35  and other administrative costs of the food service program must 
548.36  be charged to the general fund. 
549.1      That portion of superintendent and fiscal manager costs 
549.2   that can be documented as attributable to the food service 
549.3   program may be charged to the food service fund provided that 
549.4   the school district does not employ or contract with a food 
549.5   service director or other individual who manages the food 
549.6   service program, or food service management company.  If the 
549.7   cost of the superintendent or fiscal manager is charged to the 
549.8   food service fund, the charge must be at a wage rate not to 
549.9   exceed the statewide average for food service directors as 
549.10  determined by the department. 
549.11     (d) Capital expenditures for the purchase of food service 
549.12  equipment must be made from the capital fund and not the food 
549.13  service fund, unless two conditions apply: 
549.14     (1) the unreserved balance in the food service fund at the 
549.15  end of the last fiscal year is greater than the cost of the 
549.16  equipment to be purchased; and 
549.17     (2) the department has approved the purchase of the 
549.18  equipment. 
549.19     (e) If the two conditions set out in paragraph (d) apply, 
549.20  the equipment may be purchased from the food service fund. 
549.21     (f) If a deficit in the food service fund exists at the end 
549.22  of a fiscal year, and the deficit is not eliminated by revenues 
549.23  from food service operations in the next fiscal year, then the 
549.24  deficit must be eliminated by a permanent fund transfer from the 
549.25  general fund at the end of that second fiscal year.  However, if 
549.26  a district contracts with a food service management company 
549.27  during the period in which the deficit has accrued, the deficit 
549.28  must be eliminated by a payment from the food service management 
549.29  company. 
549.30     (g) Notwithstanding paragraph (f), a district may incur a 
549.31  deficit in the food service fund for up to three years without 
549.32  making the permanent transfer if the district submits to the 
549.33  commissioner by January 1 of the second fiscal year a plan for 
549.34  eliminating that deficit at the end of the third fiscal year. 
549.35     (h) If a surplus in the food service fund exists at the end 
549.36  of a fiscal year for three successive years, a district may 
550.1   recode for that fiscal year the costs of lunchroom supervision, 
550.2   lunchroom custodial services, lunchroom utilities, and other 
550.3   administrative costs of the food service program charged to the 
550.4   general fund according to paragraph (c) and charge those costs 
550.5   to the food service fund in a total amount not to exceed the 
550.6   amount of surplus in the food service fund. 
550.7      Sec. 60.  [124D.208] [LACTOSE REDUCED MILK.] 
550.8      If a nonpublic school or district 
550.9      (1) receives school lunch aid under section 124.646 or 
550.10  participates in the school breakfast program; and 
550.11     (2) receives a written request from the parent of a pupil 
550.12  who is lactose intolerant, the nonpublic school or school 
550.13  district must make available lactose reduced milk; milk 
550.14  fortified with lactase in liquid, tablet, granular, or other 
550.15  form; or milk to which lactobacillus acidophilus has been added 
550.16  for the pupil.  Notwithstanding any law, local ordinance, or 
550.17  local regulation to the contrary, a school may pour or serve 
550.18  portions of any product required by this section from a large 
550.19  container of the product at the time and place the pupil is 
550.20  being served. 
550.21     Sec. 61.  [124D.21] [SCHOOL BREAKFAST PROGRAM.] 
550.22     Subdivision 1.  [PURPOSE.] The purpose of the school 
550.23  breakfast program is to provide affordable morning nutrition to 
550.24  children so that they can effectively learn. 
550.25     Subd. 2.  [PROGRAM.] The state school breakfast program 
550.26  enables schools participating in the federal School Breakfast 
550.27  Program to cover their costs for breakfast. 
550.28     Subd. 3.  [PROGRAM REIMBURSEMENT.] (a) State funds are 
550.29  provided to reimburse school breakfasts.  Each school year, the 
550.30  state must reimburse schools in the amount of 5.1 cents for each 
550.31  fully paid breakfast and for each free and reduced price 
550.32  breakfast not eligible for the "severe need" rate. 
550.33     (b) In addition to paragraph (a), each school year the 
550.34  state must reimburse schools 10.5 cents for each free and 
550.35  reduced price breakfast not eligible for the "severe need" rate 
550.36  if between 33 and 40 percent of the school lunches served during 
551.1   the second preceding school year were served free or at a 
551.2   reduced price. 
551.3      Sec. 62.  [124D.214] [WAIVER; PILOT SCHOOL BREAKFAST 
551.4   PROGRAMS.] 
551.5      The commissioner shall request a waiver from the United 
551.6   States government as necessary to allow pilot school breakfast 
551.7   programs to be implemented in districts where no program 
551.8   currently exists.  The pilot school breakfast program must 
551.9   provide students with breakfasts designed to be taken with the 
551.10  student and consumed away from the school site. 
551.11     Sec. 63.  [124D.218] [SCHOOL BREAKFAST INCENTIVE.] 
551.12     The commissioner may provide a cash incentive to schools to 
551.13  increase participation in school breakfast programs or to 
551.14  initiate a school breakfast program if none currently exists. 
551.15     Sec. 64.  [124D.22] [SCHOOL BREAKFAST PROGRAM.] 
551.16     Subdivision 1.  [BREAKFAST REQUIRED.] A district must offer 
551.17  a school breakfast program in every school building in which at 
551.18  least 33 percent of the school lunches served during the second 
551.19  preceding school year were served free or at a reduced price. 
551.20     Subd. 2.  [EXEMPTION.] Subdivision 1 does not apply to a 
551.21  school in which fewer than 25 pupils are expected to take part 
551.22  in the program.  It also does not apply to a district that does 
551.23  not participate in the national school lunch program. 
551.24     Sec. 65.  [124D.224] [MILK PROGRAM.] 
551.25     Subdivision 1.  [LEGISLATIVE FINDINGS.] The legislature 
551.26  finds that for best health and well-being, school children in 
551.27  the state should receive at least one serving of milk each day.  
551.28  The school milk program established in this section is to 
551.29  provide districts in the state with added resources so that all 
551.30  kindergarten students in public and nonpublic schools may have 
551.31  access to wholesome milk on a daily basis. 
551.32     Subd. 2.  [ESTABLISHMENT; SCHOOL PARTICIPATION.] Each 
551.33  district in the state is encouraged to participate in the 
551.34  state-supported school milk program for kindergartners.  
551.35  Participating districts must provide one serving of milk on each 
551.36  school day to each kindergarten student attending a public or 
552.1   nonpublic school in the district.  No student is required to 
552.2   accept the milk that is provided by the district.  The program 
552.3   must be promoted and operated under the direction of the 
552.4   commissioner or the commissioner's designee. 
552.5      Subd. 3.  [PROGRAM GUIDELINES; DUTIES OF THE 
552.6   COMMISSIONER.] (a) The commissioner shall: 
552.7      (1) encourage all districts to participate in the school 
552.8   milk program for kindergartners; 
552.9      (2) prepare program guidelines, not subject to chapter 14, 
552.10  which will effectively and efficiently distribute appropriated 
552.11  and donated money to participating districts; and 
552.12     (3) seek donations and matching funds from appropriate 
552.13  private and public sources. 
552.14     (b) Program guidelines may provide for disbursement to 
552.15  districts through a mechanism of prepayments or by reimbursement 
552.16  for approved program expenses. 
552.17     (c) It is suggested that the benefits of the school milk 
552.18  program may reach the largest number of kindergarten students if 
552.19  districts are allowed to submit annual bids stating the 
552.20  per-serving level of support that would be acceptable to the 
552.21  district for their participation in the program.  The 
552.22  commissioner would review all bids received and approve bids in 
552.23  sufficient number and value to maximize the provision of milk to 
552.24  kindergarten students consistent with available funds. 
552.25     Subd. 4.  [REIMBURSEMENT.] In accordance with program 
552.26  guidelines, the commissioner shall prepay or reimburse 
552.27  participating districts for the state share of the district's 
552.28  cost for providing milk to kindergarten students. 
552.29     Sec. 66.  [124D.228] [MINORITY TEACHER INCENTIVES.] 
552.30     Subdivision 1.  [ELIGIBLE DISTRICT.] A district is eligible 
552.31  for reimbursement under this section if the district has: 
552.32     (1) a minority enrollment of more than ten percent; or 
552.33     (2) a desegregation/integration plan approved by the state 
552.34  board of education to provide equal educational opportunities 
552.35  for all students. 
552.36     Subd. 2.  [ELIGIBLE EMPLOYEE.] The following employees are 
553.1   eligible for reimbursement under this section: 
553.2      (1) a teacher who is a member of a minority group and who 
553.3   has not taught in a Minnesota school district during the school 
553.4   year before the year the teacher is employed according to this 
553.5   section; and 
553.6      (2) an aide or an education assistant who is a member of a 
553.7   minority group and who has not been employed as an aide or an 
553.8   education assistant in a Minnesota school district during the 
553.9   school year before the year the aide or education assistant is 
553.10  employed according to this section. 
553.11     Subd. 3.  [REIMBURSEMENT.] Reimbursement must equal 
553.12  one-half of the salary and fringe benefits, but not more than 
553.13  $20,000.  The district must receive reimbursement for each year 
553.14  a minority teacher, aide, or education assistant is employed.  
553.15  The department must establish application or other procedures 
553.16  for districts to obtain the reimbursement.  The department must 
553.17  not prorate the reimbursement. 
553.18     Subd. 4.  [MINORITY GROUP.] For the purposes of this 
553.19  section, a person is a member of a minority group if the person 
553.20  is African American, American Indian, Asian Pacific American, or 
553.21  an American of Mexican, Puerto Rican, or Spanish origin or 
553.22  ancestry. 
553.23     Sec. 67.  [124D.23] [STAFF DEVELOPMENT PROGRAM.] 
553.24     Subdivision 1.  [STAFF DEVELOPMENT COMMITTEE.] A board 
553.25  shall use the revenue authorized in section 124A.29 for 
553.26  in-service education for programs under section 126.77, 
553.27  subdivision 2, or for staff development plans under this 
553.28  section.  The board must establish a staff development committee 
553.29  to develop the plan, assist site decision-making teams in 
553.30  developing a site plan consistent with the goals of the plan, 
553.31  and evaluate staff development efforts at the site level.  A 
553.32  majority of the advisory committee must be teachers representing 
553.33  various grade levels, subject areas, and special education.  The 
553.34  advisory committee must also include nonteaching staff, parents, 
553.35  and administrators.  Districts must report staff development 
553.36  results and expenditures to the commissioner in the form and 
554.1   manner determined by the commissioner.  The expenditure report 
554.2   shall include expenditures by the board for district level 
554.3   activities and expenditures made by the staff.  The report shall 
554.4   provide a breakdown of expenditures for (1) curriculum 
554.5   development and programs, (2) in-service education, workshops, 
554.6   and conferences, and (3) the cost of teachers or substitute 
554.7   teachers for staff development purposes.  Within each of these 
554.8   categories, the report shall also indicate whether the 
554.9   expenditures were incurred at the district level or the school 
554.10  site level, and whether the school site expenditures were made 
554.11  possible by the grants to school sites that demonstrate 
554.12  exemplary use of allocated staff development revenue.  These 
554.13  expenditures are to be reported using the UFARS system.  The 
554.14  commissioner shall report the staff development expenditure data 
554.15  to the education committees of the legislature by February 15 
554.16  each year. 
554.17     Subd. 2.  [CONTENTS OF THE PLAN.] The plan must include the 
554.18  staff development outcomes under subdivision 2a, the means to 
554.19  achieve the outcomes, and procedures for evaluating progress at 
554.20  each school site toward meeting education outcomes.  
554.21     Subd. 3.  [STAFF DEVELOPMENT OUTCOMES.] The staff 
554.22  development committee must adopt a staff development plan for 
554.23  improving student achievement of education outcomes.  The plan 
554.24  must be consistent with education outcomes that the board 
554.25  determines.  The plan shall include ongoing staff development 
554.26  activities that contribute toward continuous improvement in 
554.27  achievement of the following goals: 
554.28     (1) improve student achievement of state and local 
554.29  education standards in all areas of the curriculum; 
554.30     (2) effectively meet the needs of a diverse student 
554.31  population, including at-risk children, children with 
554.32  disabilities, and gifted children, within the regular classroom 
554.33  and other settings; 
554.34     (3) provide an inclusive curriculum for a racially, 
554.35  ethnically, and culturally diverse student population that is 
554.36  consistent with the state education diversity rule and the 
555.1   district's education diversity plan; 
555.2      (4) improve staff ability to collaborate and consult with 
555.3   one another and to resolve conflicts; 
555.4      (5) effectively teach and model violence prevention policy 
555.5   and curriculum that address issues of harassment and teach 
555.6   nonviolent alternatives for conflict resolution; and 
555.7      (6) provide teachers and other members of site-based 
555.8   management teams with appropriate management and financial 
555.9   management skills. 
555.10     Sec. 68.  [124D.234] [EDUCATIONAL EFFECTIVENESS PROGRAM.] 
555.11     Subdivision 1.  [PROGRAM OUTCOMES.] The outcomes of the 
555.12  educational effectiveness program are to: 
555.13     (1) increase meaningful parental involvement in site-based 
555.14  decision making; 
555.15     (2) improve results-oriented instructional processes; 
555.16     (3) create flexible school-based organizational structures; 
555.17  and 
555.18     (4) improve student achievement. 
555.19     Subd. 2.  [ADVISORY TASK FORCE; PROGRAM IMPLEMENTATION.] 
555.20  The commissioner of children, families, and learning shall 
555.21  develop and maintain a program of educational effectiveness and 
555.22  results-oriented instruction.  The commissioner may appoint an 
555.23  advisory task force to assist the department of children, 
555.24  families, and learning in developing an implementation program 
555.25  for providing staff development to school district staff in 
555.26  educational effectiveness.  The program shall be based on 
555.27  established principles of instructional design and the essential 
555.28  elements of effective instruction as determined by educational 
555.29  research.  The program shall take into account the diverse needs 
555.30  of the school districts due to such factors as district size and 
555.31  location. 
555.32     Subd. 3.  [EVALUATION AND REPORT.] The commissioner shall 
555.33  annually provide for independent evaluation of the effectiveness 
555.34  of this section.  The evaluation shall measure the extent to 
555.35  which the outcomes defined in subdivision 1 are met and the 
555.36  cost-effectiveness of any funding for the program.  The 
556.1   evaluation shall also determine to what extent the program has a 
556.2   measurable impact on student achievement at the site level. 
556.3      Subd. 4.  [EDUCATIONAL EFFECTIVENESS STAFF DEVELOPMENT.] 
556.4   The department of children, families, and learning shall provide 
556.5   assistance to the school districts in implementing an 
556.6   educational effectiveness program.  In selecting an agency to 
556.7   provide assistance to the school districts, the department shall 
556.8   consider such factors as support of the proposal by the 
556.9   participating school districts and the extent to which the 
556.10  proposal provides for participation by school district staff.  
556.11  The department shall evaluate the performance of the service 
556.12  providers.  The staff development shall be facilitated by 
556.13  building level decision-making teams.  The staff development 
556.14  shall include clarification of individual school missions, 
556.15  goals, expectations, enhancement of collaborative planning and 
556.16  collegial relationships among the building staff, improvement of 
556.17  curriculum, assessment, instructional and organizational skills, 
556.18  improvement of financial and management skills, and planning of 
556.19  other staff development programs. 
556.20     Subd. 5.  [SCHOOL IMPROVEMENT INCENTIVE GRANTS.] The state 
556.21  board of education shall develop criteria to provide school 
556.22  improvement incentive grants to schools sites.  The criteria 
556.23  must include the extent to which a site has implemented the 
556.24  characteristics of the educational effectiveness program and 
556.25  demonstrated improvement in student achievement of education 
556.26  outcomes.  Notwithstanding any law to the contrary, the grant 
556.27  must remain under the control of the site decision-making team 
556.28  or principal at the site and may be used for any purpose 
556.29  determined by the team.  A school board may not reduce other 
556.30  funding otherwise due the site.  A grant may not exceed $60,000 
556.31  per site in any fiscal year. 
556.32     Sec. 69.  [124D.238] [EDUCATIONAL EFFECTIVENESS PLAN.] 
556.33     The commissioner of children, families, and learning shall 
556.34  develop a comprehensive statewide plan for maintaining and 
556.35  improving educational effectiveness in early childhood family 
556.36  education programs through secondary education programs.  The 
557.1   plan shall include provisions for the participation of 
557.2   post-secondary teacher preparation programs and early childhood 
557.3   family education programs.  The plan shall encourage 
557.4   implementation of educational effectiveness strategies based on 
557.5   research findings in the area, develop in-service programs for 
557.6   school district staff, integrate developments in educational 
557.7   technology with classroom instruction, and develop a mechanism 
557.8   for establishing a statewide network to coordinate and 
557.9   disseminate information on research in educational 
557.10  effectiveness.  The commissioner may employ consultants and 
557.11  specialists to assist in the development of the plan, and, to 
557.12  the extent possible, shall utilize the information provided by 
557.13  the planning, evaluation, and reporting process and the 
557.14  statewide assessment program.  The plan shall be revised as 
557.15  necessary.  
557.16     Sec. 70.  [124D.24] [DECLARATION OF POLICY.] 
557.17     It is the intent of the legislature to provide for 
557.18  distribution of educational aids such as textbooks, standardized 
557.19  tests and pupil support services so that every school pupil in 
557.20  the state will share equitably in education benefits and 
557.21  therefore further assure all Minnesota pupils and their parents 
557.22  freedom of choice in education. 
557.23     Sec. 71.  [124D.244] [DEFINITIONS.] 
557.24     Subdivision 1.  [DEFINITIONS.] As used in sections 123.931 
557.25  to 123.947, the terms defined in this section shall have the 
557.26  meanings ascribed to them. 
557.27     Subd. 2.  [TEXTBOOK.] "Textbook" means any book or book 
557.28  substitute which a pupil uses as a text or text substitute in a 
557.29  particular class or program in the school regularly attended and 
557.30  a copy of which is expected to be available for the individual 
557.31  use of each pupil in this class or program.  The term shall be 
557.32  limited to books, workbooks, or manuals, whether bound or in 
557.33  loose-leaf form, intended for use as a principal source of study 
557.34  material for a given class or a group of students.  The term 
557.35  includes only such secular, neutral and nonideological textbooks 
557.36  as are available, used by, or of benefit to Minnesota public 
558.1   school pupils. 
558.2      Subd. 3.  [STANDARDIZED TESTS.] "Standardized tests" means 
558.3   standardized tests and scoring services which are provided by 
558.4   commercial publishing organizations or the state and which are 
558.5   in use in the public schools of Minnesota to measure the 
558.6   progress of pupils in secular subjects. 
558.7      Subd. 4.  [PUPIL SUPPORT SERVICES.] "Pupil support services"
558.8   means guidance and counseling services and health services. 
558.9      Subd. 5.  [INDIVIDUALIZED INSTRUCTIONAL OR COOPERATIVE 
558.10  LEARNING MATERIALS.] "Individualized instructional or 
558.11  cooperative learning materials" means educational materials 
558.12  which:  
558.13     (a) are designed primarily for individual pupil use or use 
558.14  by pupils in a cooperative learning group in a particular class 
558.15  or program in the school the pupil regularly attends; 
558.16     (b) are secular, neutral, nonideological and not capable of 
558.17  diversion for religious use; and 
558.18     (c) are available, used by, or of benefit to Minnesota 
558.19  public school pupils.  
558.20     Subject to the requirements in clauses (a), (b), and (c), 
558.21  "individualized instructional or cooperative learning materials" 
558.22  include, but are not limited to, the following if they do not 
558.23  fall within the definition of "textbook" in subdivision 1b:  
558.24  published materials; periodicals; documents; pamphlets; 
558.25  photographs; reproductions; pictorial or graphic works; 
558.26  prerecorded video programs; prerecorded tapes, cassettes and 
558.27  other sound recordings; manipulative materials; desk charts; 
558.28  games; study prints and pictures; desk maps; models; learning 
558.29  kits; blocks or cubes; flash cards; individualized multimedia 
558.30  systems; prepared instructional computer software programs; 
558.31  choral and band sheet music; and CD-Rom.  
558.32     "Individualized instructional or cooperative learning 
558.33  materials" do not include instructional equipment, instructional 
558.34  hardware, or ordinary daily consumable classroom supplies.  
558.35     Subd. 6.  [PUPILS.] "Pupils" means elementary and secondary 
558.36  pupils. 
559.1      Subd. 7.  [ELEMENTARY PUPILS.] "Elementary pupils" means 
559.2   pupils in grades kindergarten through 6; provided, each 
559.3   kindergarten pupil shall be counted as one-half pupil for all 
559.4   computations pursuant to sections 123.931 to 123.937. 
559.5      Subd. 8.  [SECONDARY PUPILS.] "Secondary pupils" means 
559.6   pupils in grades 7 through 12. 
559.7      Subd. 9.  [NONPUBLIC SCHOOL DEFINED.] "Nonpublic school" 
559.8   means any school, church or religious organization, or home 
559.9   school wherein a resident of Minnesota may legally fulfill the 
559.10  compulsory instruction requirements of section 120.101, which is 
559.11  located within the state, and which meets the requirements of 
559.12  Title VI of the Civil Rights Act of 1964 (Public Law Number 
559.13  88-352).  It does not mean a public school. 
559.14     Subd. 10.  [NONSECTARIAN NONPUBLIC SCHOOL.] "Nonsectarian 
559.15  nonpublic school" means any nonpublic school as defined in 
559.16  subdivision 3, which is not church related, is not controlled by 
559.17  a church, and does not promote a religious belief.  
559.18     Subd. 11.  [PUPIL OR STUDENT.] "Pupil" or "student" means a 
559.19  child enrolled in a school and is limited to children who are 
559.20  residents, or children of residents, of Minnesota. 
559.21     Subd. 12.  [INTERMEDIARY SERVICE AREA.] "Intermediary 
559.22  service area" means a school administrative unit approved by the 
559.23  commissioner, other than a single school district, including but 
559.24  not limited to the following: 
559.25     (a) a service cooperative; 
559.26     (b) a cooperative of two or more school districts; 
559.27     (c) learning centers; or 
559.28     (d) an association of schools or school districts. 
559.29     Subd. 13.  [NEUTRAL SITE.] "Neutral site" means a public 
559.30  center, a nonsectarian nonpublic school, a mobile unit located 
559.31  off the nonpublic school premises, or any other location off the 
559.32  nonpublic school premises which is neither physically nor 
559.33  educationally identified with the functions of the nonpublic 
559.34  school. 
559.35     Subd. 14.  [GUIDANCE AND COUNSELING SERVICES.] "Guidance 
559.36  and counseling services" means all activities of a licensed 
560.1   counselor in counseling pupils and parents, providing counseling 
560.2   on learning problems, evaluating the abilities of pupils, 
560.3   assisting pupils in personal and social development and 
560.4   providing referral assistance. 
560.5      Subd. 15.  [HEALTH SERVICES.] "Health services" means 
560.6   physician, dental, nursing or optometric services and health 
560.7   supplies brought to the site by the health professional for 
560.8   pupil usage in the field of physical or mental health; provided 
560.9   the term does not include direct educational instruction, 
560.10  services which are required pursuant to sections 120.17 and 
560.11  120.1701, or services which are eligible to receive special 
560.12  education aid pursuant to section 124.32. 
560.13     Sec. 72.  [124D.248] [TEXTBOOKS; INDIVIDUAL INSTRUCTION OR 
560.14  COOPERATIVE LEARNING MATERIAL; STANDARD TESTS.] 
560.15     Subdivision 1.  [PROVISION.] The state board of education 
560.16  shall promulgate rules under the provisions of chapter 14 
560.17  requiring that in each school year, based upon formal requests 
560.18  by or on behalf of nonpublic school pupils in a nonpublic 
560.19  school, the local districts or intermediary service areas must 
560.20  purchase or otherwise acquire textbooks, individualized 
560.21  instructional or cooperative learning materials, and 
560.22  standardized tests and loan or provide them for use by children 
560.23  enrolled in that nonpublic school.  These textbooks, 
560.24  individualized instructional or cooperative learning materials, 
560.25  and standardized tests must be loaned or provided free to the 
560.26  children for the school year for which requested.  The loan or 
560.27  provision of the textbooks, individualized instructional or 
560.28  cooperative learning materials, and standardized tests shall be 
560.29  subject to rules prescribed by the state board of education. 
560.30     Subd. 2.  [TITLE.] The title to textbooks, individualized 
560.31  instructional or cooperative learning materials, and 
560.32  standardized testing materials must remain in the servicing 
560.33  school district or intermediary service area, and possession or 
560.34  custody may be granted or charged to administrators of the 
560.35  nonpublic school attended by the nonpublic school pupil or 
560.36  pupils to whom the textbooks, individualized instructional or 
561.1   cooperative learning materials, or standardized tests are loaned 
561.2   or provided. 
561.3      Subd. 3.  [COST; LIMITATION.] (a) The cost per pupil of the 
561.4   textbooks, individualized instructional or cooperative learning 
561.5   materials, and standardized tests provided for in this section 
561.6   for each school year must not exceed the statewide average 
561.7   expenditure per pupil, adjusted pursuant to clause (b), by the 
561.8   Minnesota public elementary and secondary schools for textbooks, 
561.9   individualized instructional materials and standardized tests as 
561.10  computed and established by the department by March 1 of the 
561.11  preceding school year from the most recent public school year 
561.12  data then available. 
561.13     (b) The cost computed in clause (a) shall be increased by 
561.14  an inflation adjustment equal to the percent of increase in the 
561.15  formula allowance, pursuant to section 124A.22, subdivision 2, 
561.16  from the second preceding school year to the current school year.
561.17     (c) The commissioner shall allot to the districts or 
561.18  intermediary service areas the total cost for each school year 
561.19  of providing or loaning the textbooks, individualized 
561.20  instructional or cooperative learning materials, and 
561.21  standardized tests for the pupils in each nonpublic school.  The 
561.22  allotment shall not exceed the product of the statewide average 
561.23  expenditure per pupil, according to clause (a), adjusted 
561.24  pursuant to clause (b), multiplied by the number of nonpublic 
561.25  school pupils who make requests pursuant to this section and who 
561.26  are enrolled as of September 15 of the current school year. 
561.27     Sec. 73.  [124D.25] [PROVISION OF PUPIL SUPPORT SERVICES.] 
561.28     Subdivision 1.  [PROVIDED SERVICES.] The state board of 
561.29  education shall promulgate rules under the provisions of chapter 
561.30  14 requiring each district or other intermediary service area:  
561.31  (a) to provide each year upon formal request by a specific date 
561.32  by or on behalf of a nonpublic school pupil enrolled in a 
561.33  nonpublic school located in that district or area, the same 
561.34  specific health services as are provided for public school 
561.35  pupils by the district where the nonpublic school is located; 
561.36  and (b) to provide each year upon formal request by a specific 
562.1   date by or on behalf of a nonpublic school secondary pupil 
562.2   enrolled in a nonpublic school located in that district or area, 
562.3   the same specific guidance and counseling services as are 
562.4   provided for public school secondary pupils by the district 
562.5   where the nonpublic school is located.  The district where the 
562.6   nonpublic school is located must provide the necessary 
562.7   transportation within the district boundaries between the 
562.8   nonpublic school and a public school or neutral site for 
562.9   nonpublic school pupils who are provided pupil support services 
562.10  pursuant to this section.  Each request for pupil support 
562.11  services must set forth the guidance and counseling or health 
562.12  services requested by or on behalf of all eligible nonpublic 
562.13  school pupils enrolled in a given nonpublic school.  No district 
562.14  or intermediary service area must not expend an amount for these 
562.15  pupil support services which exceeds the amount allotted to it 
562.16  under this section. 
562.17     Subd. 2.  [LOCATION OF SERVICES.] Health services may be 
562.18  provided to nonpublic school pupils pursuant to this section at 
562.19  a public school, a neutral site, the nonpublic school or any 
562.20  other suitable location.  Guidance and counseling services may 
562.21  be provided to nonpublic school pupils pursuant to this section 
562.22  only at a public school or a neutral site.  District or 
562.23  intermediary service area personnel and representatives of the 
562.24  nonpublic school pupils receiving pupil support services must 
562.25  hold an annual consultation regarding the type of services, 
562.26  provider of services, and the location of the provision of these 
562.27  services.  The district board or intermediary service area 
562.28  governing board must make the final decision on the location of 
562.29  the provision of these services. 
562.30     Subd. 3.  [GUIDANCE AND COUNSELING; EXCLUSIONS.] Guidance 
562.31  and counseling services provided to nonpublic school pupils 
562.32  pursuant to this section shall not include the planning or 
562.33  selection of particular courses or classroom activities of the 
562.34  nonpublic school. 
562.35     Subd. 4.  [HEALTH SERVICES; ALLOTMENT.] Each school year 
562.36  the commissioner shall allot to the school districts or other 
563.1   intermediary service areas for the provision of health services 
563.2   pursuant to this section the actual cost of the services 
563.3   provided for the pupils in each respective nonpublic school for 
563.4   that school year.  The allotment must not exceed the average 
563.5   expenditure per public school pupil for these services by those 
563.6   Minnesota public elementary and secondary schools which provide 
563.7   health services to public school pupils, multiplied by the 
563.8   number of pupils in that particular nonpublic school who request 
563.9   these health services and who are enrolled as of September 15 of 
563.10  the current school year. 
563.11     Subd. 5.  [GUIDANCE AND COUNSELING SERVICES; ALLOTMENT.] 
563.12  Each school year the commissioner shall allot to the school 
563.13  districts or intermediary service areas for the provision of 
563.14  guidance and counseling services pursuant to this section the 
563.15  actual cost of the services provided for the pupils in each 
563.16  respective nonpublic school for that school year.  The allotment 
563.17  for guidance and counseling services for the secondary pupils in 
563.18  each nonpublic school must not exceed the average expenditure 
563.19  per public school secondary pupil for these services by those 
563.20  Minnesota public schools which provide these services to their 
563.21  secondary pupils, multiplied by the number of secondary pupils 
563.22  in that particular nonpublic school who request these services 
563.23  and who are enrolled as of September 15 of the current school 
563.24  year. 
563.25     Subd. 6.  [COMPUTATION OF MAXIMUM ALLOTMENTS.] For purposes 
563.26  of computing maximum allotments for each school year pursuant to 
563.27  this section, the average public school expenditure per pupil 
563.28  for health services and the average public school expenditure 
563.29  per secondary pupil for guidance and counseling services shall 
563.30  be computed and established by the department by March 1 of the 
563.31  preceding school year from the most recent public school year 
563.32  data then available. 
563.33     Subd. 7.  [NONPUBLIC EDUCATION COUNCIL.] (a) The 
563.34  commissioner shall appoint a 15-member council on nonpublic 
563.35  education.  The 15 members shall represent various areas of the 
563.36  state, represent various methods of providing nonpublic 
564.1   education, and shall be knowledgeable about nonpublic 
564.2   education.  The compensation, removal of members, filling of 
564.3   vacancies, and terms are governed by section 15.0575.  The 
564.4   council shall not expire.  The council shall advise the 
564.5   commissioner and the state board on issues affecting nonpublic 
564.6   education and nonpublic schools.  The council may recognize 
564.7   educational accrediting agencies, for the sole purpose of 
564.8   sections 120.101, 120.102, and 120.103.  
564.9      (b) A parent or guardian of a nonpublic school pupil or a 
564.10  nonpublic school may file a complaint about services provided 
564.11  under sections 123.931 to 123.937 with the nonpublic education 
564.12  council.  The council may review the complaint and make a 
564.13  recommendation for resolution to the commissioner. 
564.14     Sec. 74.  [124D.254] [PAYMENTS FOR CONTRACTUAL 
564.15  OBLIGATIONS.] 
564.16     The commissioner shall make such payments to school 
564.17  districts or intermediary service areas pursuant to sections 
564.18  123.931 to 123.937 as are needed to meet contractual obligations 
564.19  incurred for the provision of benefits to nonpublic school 
564.20  students pursuant to section 123.933 or 123.935. 
564.21     Sec. 75.  [124D.258] [ADMINISTRATIVE COSTS.] 
564.22     Each year, a district or intermediary service area may 
564.23  claim and receive from the department an additional sum for the 
564.24  administration of sections 123.933 and 123.935, equal to five 
564.25  percent of the district's or area's allocation for that year 
564.26  pursuant to those sections.  
564.27     Sec. 76.  [124D.26] [NOTICE TO DISTRICTS; PRORATION.] 
564.28     If the appropriation for nonpublic educational aid under 
564.29  sections 123.931 to 123.947 is not sufficient to meet the 
564.30  required payments in any fiscal year, the department must notify 
564.31  the school districts at the earliest possible date of the need 
564.32  to prorate the appropriation among the districts.  
564.33     Sec. 77.  [124D.264] [LIMIT ON DISTRICT OBLIGATIONS.] 
564.34     If the amount appropriated for purposes of sections 123.931 
564.35  to 123.937 for any year is not sufficient to make the payments 
564.36  required pursuant to sections 123.931 to 123.937 for that year, 
565.1   then no school district or intermediary service area is required 
565.2   to expend an amount pursuant to sections 123.931 to 123.937 for 
565.3   that year which exceeds the amount of the payments it receives 
565.4   pursuant to sections 123.931 to 123.937 for that year. 
565.5      Sec. 78.  [124D.268] [USE OF INDIVIDUALIZED INSTRUCTIONAL 
565.6   MATERIALS.] 
565.7      (a) The commissioner shall assure that textbooks and 
565.8   individualized instructional materials loaned to nonpublic 
565.9   school pupils are secular, neutral, nonideological and that they 
565.10  are incapable of diversion for religious use.  
565.11     (b) Textbooks and individualized instructional materials 
565.12  must not be used in religious courses, devotional exercises, 
565.13  religious training or any other religious activity.  
565.14     (c) Textbooks and individualized instructional materials 
565.15  must be loaned only to individual pupils upon the request of a 
565.16  parent or guardian or the pupil on a form designated for this 
565.17  use by the commissioner.  The request forms shall provide for 
565.18  verification by the parent or guardian or pupil that the 
565.19  requested textbooks and individualized instructional materials 
565.20  are for the use of the individual pupil in connection with a 
565.21  program of instruction in the pupil's elementary or secondary 
565.22  school.  
565.23     (d) The servicing school district or the intermediary 
565.24  service area must take adequate measures to ensure an accurate 
565.25  and periodic inventory of all textbooks and individualized 
565.26  instructional materials loaned to elementary and secondary 
565.27  school pupils attending nonpublic schools.  The state board of 
565.28  education shall promulgate rules under the provisions of chapter 
565.29  14 to terminate the eligibility of any nonpublic school pupil if 
565.30  the commissioner determines, after notice and opportunity for 
565.31  hearing, that the textbooks or individualized instructional 
565.32  materials have been used in a manner contrary to the provisions 
565.33  of section 123.932, subdivision 1e, 123.933, or this section or 
565.34  any rules promulgated by the state board of education. 
565.35     (e) Nothing contained in section 123.932, subdivision 1e, 
565.36  123.933, or this section shall be construed to authorize the 
566.1   making of any payments to a nonpublic school or its faculty, 
566.2   staff or administrators for religious worship or instruction or 
566.3   for any other purpose.  
566.4      Sec. 79.  [124D.27] [TAX AND AID ANTICIPATION BORROWING; 
566.5   DEFINITIONS.] 
566.6      School district as used in sections 124.71 to 124.76 means 
566.7   any school district in the state of Minnesota, however organized 
566.8   and wherever located. 
566.9      Sec. 80.  [124D.274] [APPLICATION OF LIMITING TAX 
566.10  LEGISLATION.] 
566.11     Notwithstanding the provisions of section 471.69 or section 
566.12  471.75, or of any other provision of law which by per capita 
566.13  limitation, local tax rate limitation, or otherwise, limits the 
566.14  power of a district to incur any debt or to issue any warrant or 
566.15  order, a district has the powers in sections 124.71 to 124.76 
566.16  specifically conferred upon it and all powers incident and 
566.17  necessary to carrying out the purposes of sections 124.71 to 
566.18  124.76. 
566.19     Sec. 81.  [124D.278] [AUTHORITY TO BORROW MONEY; 
566.20  LIMITATIONS.] 
566.21     Subdivision 1.  [BORROWING AUTHORITY.] The board of any 
566.22  school district may borrow money upon negotiable tax 
566.23  anticipation certificates of indebtedness, in the manner and 
566.24  subject to the limitations set forth in sections 124.71 to 
566.25  124.76, for the purpose of anticipating general taxes already 
566.26  levied by the district for school purposes.  The aggregate of 
566.27  the borrowing under this subdivision must never exceed 75 
566.28  percent of the taxes which are due and payable in the calendar 
566.29  year, and as to which taxes no penalty for nonpayment or 
566.30  delinquency has attached.  In determining the amount of taxes 
566.31  due and payable in the calendar year, any amounts paid by the 
566.32  state to replace such taxes, whether paid in that calendar year 
566.33  or not, must be included. 
566.34     Subd. 2.  [LIMITATIONS.] The board may also borrow money in 
566.35  the manner and subject to the limitations set forth in sections 
566.36  124.71 to 124.76 in anticipation of receipt of state aids for 
567.1   schools as defined in Minnesota Statutes and of federal school 
567.2   aids to be distributed by or through the department.  The 
567.3   aggregate of such borrowings under this subdivision shall never 
567.4   exceed 75 percent of such aids which are receivable by said 
567.5   school district in the school year (from July 1 to June 30) in 
567.6   which the money is borrowed, as estimated and certified by the 
567.7   commissioner. 
567.8      Sec. 82.  [124D.28] [ENABLING RESOLUTION; FORM OF 
567.9   CERTIFICATES OF INDEBTEDNESS.] 
567.10     The board may authorize and effect such borrowing, and may 
567.11  issue such certificates of indebtedness upon passage of a 
567.12  resolution specifying the amount and purposes for which it deems 
567.13  such borrowing is necessary.  The resolution must be adopted by 
567.14  a vote of at least two-thirds of the board members. The board 
567.15  must fix the amount, date, maturity, form, denomination, and 
567.16  other details of the certificates of indebtedness, not 
567.17  inconsistent with this chapter.  The board must fix the date and 
567.18  place for receipt of bids for the purchase of the certificates 
567.19  when bids are required and direct the clerk to give notice of 
567.20  the date and place for bidding. 
567.21     Sec. 83.  [124D.284] [REPAYMENT; MATURITY DATE OF 
567.22  CERTIFICATES; INTEREST.] 
567.23     The proceeds of the current tax levies and future state aid 
567.24  receipts or other school funds which may become available must 
567.25  be applied to the extent necessary to repay such certificates 
567.26  and the full faith and credit of the district shall be pledged 
567.27  to payment of the certificates.  Certificates issued in 
567.28  anticipation of receipt of aids shall mature not later than the 
567.29  anticipated date of receipt of the aids as estimated by the 
567.30  commissioner, but in no event later than three months after the 
567.31  close of the school year in which issued.  Certificates issued 
567.32  in anticipation of receipt of taxes shall mature not later than 
567.33  the anticipated date of receipt in full of the taxes, but in no 
567.34  event later than three months after the close of the calendar 
567.35  year in which issued.  The certificates must be sold at not less 
567.36  than par.  The certificates must bear interest after maturity 
568.1   until paid at the rate they bore before maturity and any 
568.2   interest accruing before or after maturity must be paid from any 
568.3   available school funds.  
568.4      Sec. 84.  [124D.288] [STATE PAYMENT OF DEBT OBLIGATION UPON 
568.5   POTENTIAL DEFAULT; REPAYMENT; STATE OBLIGATION NET DEBT.] 
568.6      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
568.7   section, the term "debt obligation" means either a tax or aid 
568.8   anticipation certificate of indebtedness or a general obligation 
568.9   bond.  
568.10     Subd. 2.  [NOTIFICATIONS; PAYMENT; APPROPRIATION.] (a) If a 
568.11  district believes that it may be unable to make a principal or 
568.12  interest payment on any outstanding debt obligation on the date 
568.13  that payment is due, it must notify the commissioner as soon as 
568.14  possible, but not less than 15 working days before the date that 
568.15  principal or interest payment is due.  The notice must include 
568.16  the name of the district, an identification of the debt 
568.17  obligation issue in question, the date the payment is due, the 
568.18  amount of principal and interest due on the payment date, the 
568.19  amount of principal or interest that the district will be unable 
568.20  to repay on that date, the paying agent for the debt obligation, 
568.21  the wire transfer instructions to transfer funds to that paying 
568.22  agent, and an indication as to whether a payment is being 
568.23  requested by the district under this section.  If a paying agent 
568.24  becomes aware of a potential default, it shall inform the 
568.25  commissioner of that fact.  After receipt of a notice which 
568.26  requests a payment under this section, after consultation with 
568.27  the district and the paying agent, and after verification of the 
568.28  accuracy of the information provided, the commissioner shall 
568.29  notify the commissioner of finance of the potential default.  
568.30  The notice must include a final figure as to the amount due that 
568.31  the district will be unable to repay on the date due. 
568.32     (b) Except as provided in subdivision 9, upon receipt of 
568.33  this notice from the commissioner, the commissioner of finance 
568.34  shall issue a warrant and authorize the commissioner to pay to 
568.35  the paying agent for the debt obligation the specified amount on 
568.36  or before the date due. The amounts needed for the purposes of 
569.1   this subdivision are annually appropriated to the department 
569.2   from the state general fund. 
569.3      (c) The departments of children, families, and learning and 
569.4   finance must jointly develop detailed procedures for districts 
569.5   to notify the state that they have obligated themselves to be 
569.6   bound by the provisions of this section, procedures for 
569.7   districts and paying agents to notify the state of potential 
569.8   defaults and to request state payment under this section, and 
569.9   procedures for the state to expedite payments to prevent 
569.10  defaults.  The procedures are not subject to chapter 14. 
569.11     Subd. 3.  [SCHOOL DISTRICT BOUND; INTEREST RATE ON STATE 
569.12  PAID AMOUNT.] If, at the request of a district, the state has 
569.13  paid part or all of the principal or interest due on a 
569.14  district's debt obligation on a specific date, the district is 
569.15  bound by all provisions of this section and the amount paid 
569.16  shall bear taxable interest from the date paid until the date of 
569.17  repayment at the state treasurer's invested cash rate as it is 
569.18  certified by the commissioner of finance.  Interest shall only 
569.19  accrue on the amounts paid and outstanding less the reduction in 
569.20  aid under subdivision 4 and other payments received from the 
569.21  district. 
569.22     Subd. 4.  [PLEDGE OF DISTRICT'S FULL FAITH AND CREDIT.] If, 
569.23  at the request of a district, the state has paid part or all of 
569.24  the principal or interest due on a district's debt obligation on 
569.25  a specific date, the pledge of the full faith and credit and 
569.26  unlimited taxing powers of the district to repay the principal 
569.27  and interest due on those debt obligations shall also, without 
569.28  an election or the requirement of a further authorization, 
569.29  become a pledge of the full faith and credit and unlimited 
569.30  taxing powers of the district to repay to the state the amount 
569.31  paid, with interest.  Amounts paid by the state must be repaid 
569.32  in the order in which the state payments were made. 
569.33     Subd. 5.  [AID REDUCTION FOR REPAYMENT.] Except as provided 
569.34  in this subdivision, the state must reduce the state aid payable 
569.35  to the district under chapters 124, 124A, and 273, according to 
569.36  the schedule in section 124.155, subdivision 2, by the amount 
570.1   paid by the state under this section on behalf of the district, 
570.2   plus the interest due on it, and the amount reduced must revert 
570.3   from the appropriate account to the state general fund.  
570.4   Payments from the school endowment fund or any federal aid 
570.5   payments shall not be reduced.  If, after review of the 
570.6   financial situation of the district, the commissioner advises 
570.7   the commissioner of finance that a total reduction of the aids 
570.8   would cause an undue hardship on or an undue disruption of the 
570.9   educational program of the district, the commissioner, with the 
570.10  approval of the commissioner of finance, may establish a 
570.11  different schedule for reduction of those aids to repay the 
570.12  state.  The amount of aids to be reduced are decreased by any 
570.13  amounts repaid to the state by the school district from other 
570.14  revenue sources. 
570.15     Subd. 6.  [TAX LEVY FOR REPAYMENT.] (a) With the approval 
570.16  of the commissioner, a district may levy in the year the state 
570.17  makes a payment under this section an amount up to the amount 
570.18  necessary to provide funds for the repayment of the amount paid 
570.19  by the state plus interest through the date of estimated 
570.20  repayment by the district.  The proceeds of this levy may be 
570.21  used only for this purpose unless they are in excess of the 
570.22  amount actually due, in which case the excess shall be used to 
570.23  repay other state payments made under this section or shall be 
570.24  deposited in the debt redemption fund of the district.  This 
570.25  levy shall be an increase in the levy limits of the district for 
570.26  purposes of section 275.065, subdivision 6.  The amount of aids 
570.27  to be reduced to repay the state shall be decreased by the 
570.28  amount levied.  This levy by the district is not eligible for 
570.29  debt service equalization under section 124.95. 
570.30     (b) If the state is not repaid in full for a payment made 
570.31  under this section by November 30 of the calendar year following 
570.32  the year in which the state makes the payment, the commissioner 
570.33  shall require the district to certify a property tax levy in an 
570.34  amount up to the amount necessary to provide funds for repayment 
570.35  of the amount paid by the state plus interest through the date 
570.36  of estimated repayment by the district.  To prevent undue 
571.1   hardship, the commissioner may allow the district to certify the 
571.2   levy over a five-year period.  The proceeds of the levy may be 
571.3   used only for this purpose unless they are in excess of the 
571.4   amount actually due, in which case the excess shall be used to 
571.5   repay other state payments made under this section or shall be 
571.6   deposited in the debt redemption fund of the district.  This 
571.7   levy shall be an increase in the levy limits of the school 
571.8   district for purposes of section 275.065, subdivision 6.  If the 
571.9   commissioner orders the district to levy, the amount of aids 
571.10  reduced to repay the state shall be decreased by the amount 
571.11  levied.  This levy by the district is not eligible for debt 
571.12  service equalization under section 124.95 or any successor 
571.13  provision.  A levy under this subdivision must be explained as a 
571.14  specific increase at the meeting required under section 275.065, 
571.15  subdivision 6.  
571.16     Subd. 7.  [ELECTION AS TO MANDATORY APPLICATION.] A 
571.17  district may covenant and obligate itself, prior to the issuance 
571.18  of an issue of debt obligations, to notify the commissioner of a 
571.19  potential default and to use the provisions of this section to 
571.20  guarantee payment of the principal and interest on those debt 
571.21  obligations when due.  If the district obligates itself to be 
571.22  bound by this section, it must covenant in the resolution that 
571.23  authorizes the issuance of the debt obligations to deposit with 
571.24  the paying agent three business days prior to the date on which 
571.25  a payment is due an amount sufficient to make that payment or to 
571.26  notify the commissioner under subdivision 1 that it will be 
571.27  unable to make all or a portion of that payment.  A district 
571.28  that has obligated itself must include a provision in its 
571.29  agreement with the paying agent for that issue that requires the 
571.30  paying agent to inform the commissioner if it becomes aware of a 
571.31  potential default in the payment of principal or interest on 
571.32  that issue or if, on the day two business days prior to the date 
571.33  a payment is due on that issue, there are insufficient funds to 
571.34  make the payment on deposit with the paying agent.  If a 
571.35  district either covenants to be bound by this section or accepts 
571.36  state payments under this section to prevent a default of a 
572.1   particular issue of debt obligations, the provisions of this 
572.2   section shall be binding as to that issue as long as any debt 
572.3   obligation of that issue remain outstanding.  If the provisions 
572.4   of this section are or become binding for more than one issue of 
572.5   debt obligations and a district is unable to make payments on 
572.6   one or more of those issues, the district must continue to make 
572.7   payments on the remaining issues.  
572.8      Subd. 8.  [MANDATORY PLAN; TECHNICAL ASSISTANCE.] If the 
572.9   state makes payments on behalf of a district under this section 
572.10  or the district defaults in the payment of principal or interest 
572.11  on an outstanding debt obligation, it must submit a plan to the 
572.12  commissioner for approval specifying the measures it intends to 
572.13  implement to resolve the issues which led to its inability to 
572.14  make the payment and to prevent further defaults.  The 
572.15  department must provide technical assistance to the district in 
572.16  preparing its plan.  If the commissioner determines that a 
572.17  district's plan is not adequate, the commissioner shall notify 
572.18  the district that the plan has been disapproved, the reasons for 
572.19  the disapproval, and that the state shall not make future 
572.20  payments under this section for debt obligations issued after 
572.21  the date specified in that notice until its plan is approved.  
572.22  The commissioner may also notify the district that until its 
572.23  plan is approved, other aids due the district will be withheld 
572.24  after a date specified in the notice. 
572.25     Subd. 9.  [STATE BOND RATING.] If the commissioner of 
572.26  finance determines that the credit rating of the state would be 
572.27  adversely affected thereby, the commissioner of finance shall 
572.28  not issue warrants under subdivision 2 for the payment of 
572.29  principal or interest on any debt obligations for which a 
572.30  district did not, prior to their issuance, obligate itself to be 
572.31  bound by the provisions of this section. 
572.32     Sec. 85.  [124D.29] [SALE OF CERTIFICATES; DISBURSEMENT OF 
572.33  PROCEEDS.] 
572.34     Subdivision 1.  [PUBLIC SALE.] The clerk of the board shall 
572.35  give notice of the proposed sale as required by chapter 475.  At 
572.36  the time and place so fixed, such certificates may be sold by 
573.1   the board, or its officers if authorized by the board, to the 
573.2   bidder who will agree to purchase the same on terms deemed most 
573.3   favorable to the district.  Such certificates shall be executed 
573.4   and delivered as required by chapter 475.  The money so received 
573.5   shall be disbursed solely for the purposes for which such taxes 
573.6   are levied or aids are receivable.  The purchaser of such 
573.7   certificates shall not be obligated to see to such application 
573.8   of the proceeds. 
573.9      Subd. 2.  [PUBLIC SALE EXCEPTION.] Public sale of tax and 
573.10  aid anticipation certificates of indebtedness according to 
573.11  subdivision 1 shall not be required (1) if the proposed 
573.12  borrowing is in an amount less than $400,000, and if the sum of 
573.13  all outstanding tax and aid anticipation certificates issued by 
573.14  the board within the preceding six months does not exceed 
573.15  $400,000 or, (2) if the certificates mature no later than 13 
573.16  months after their date of issue.  If no public sale is held, 
573.17  the certificates of indebtedness may be sold in accordance with 
573.18  the most favorable of two or more proposals solicited privately 
573.19  or the interest rates may be determined by direct negotiation.  
573.20     Sec. 86.  [124D.294] [BUILDING CONSTRUCTION DOWN PAYMENT 
573.21  PROGRAM.] 
573.22     Subdivision 1.  [CREATION OF A DOWN PAYMENT ACCOUNT.] A 
573.23  district may create a down payment account as a separate account 
573.24  in its construction fund.  All proceeds from the down payment 
573.25  levy must be deposited in the capital expenditure fund and 
573.26  transferred to this account.  Interest income attributable to 
573.27  the down payment account must be credited to the account. 
573.28     Subd. 2.  [USES OF THE ACCOUNT.] Money in the down payment 
573.29  account must be used as a down payment for the future costs of 
573.30  acquisition and betterment for a project that has been reviewed 
573.31  under section 121.15 and has been approved according to 
573.32  subdivision 3. 
573.33     Subd. 3.  [FACILITIES DOWN PAYMENT LEVY REFERENDUM.] A 
573.34  district may levy the local tax rate approved by a majority of 
573.35  the electors voting on the question to provide funds for a down 
573.36  payment for an approved project.  The election must take place 
574.1   no more than five years before the estimated date of 
574.2   commencement of the project.  The referendum must be held on a 
574.3   date set by the board.  A referendum for a project not receiving 
574.4   a positive review and comment by the commissioner under section 
574.5   121.15 must be approved by at least 60 percent of the voters at 
574.6   the election.  The referendum may be called by the school board 
574.7   and may be held: 
574.8      (1) separately, before an election for the issuance of 
574.9   obligations for the project under chapter 475; or 
574.10     (2) in conjunction with an election for the issuance of 
574.11  obligations for the project under chapter 475; or 
574.12     (3) notwithstanding section 475.59, as a conjunctive 
574.13  question authorizing both the down payment levy and the issuance 
574.14  of obligations for the project under chapter 475.  Any 
574.15  obligations authorized for a project may be issued within five 
574.16  years of the date of the election. 
574.17     The ballot must provide a general description of the 
574.18  proposed project, state the estimated total cost of the project, 
574.19  state whether the project has received a positive or negative 
574.20  review and comment from the commissioner, state the maximum 
574.21  amount of the down payment levy as a percentage of net tax 
574.22  capacity, state the amount that will be raised by that local tax 
574.23  rate in the first year it is to be levied, and state the maximum 
574.24  number of years that the levy authorization will apply. 
574.25     The ballot must contain a textual portion with the 
574.26  information required in this section and a question stating 
574.27  substantially the following: 
574.28     "Shall the down payment levy proposed by the board of 
574.29  .......... School District No. .......... be approved?" 
574.30     If approved, the amount provided by the approved local tax 
574.31  rate applied to the net tax capacity for the year preceding the 
574.32  year the levy is certified may be certified for the number of 
574.33  years approved. 
574.34     In the event a conjunctive question proposes to authorize 
574.35  both the down payment levy and the issuance of obligations for 
574.36  the project, appropriate language authorizing the issuance of 
575.1   obligations must also be included in the question.  
575.2      The district must notify the commissioner of the results of 
575.3   the referendum. 
575.4      Subd. 4.  [EXCESS BUILDING CONSTRUCTION FUND LEVY 
575.5   PROCEEDS.] Any funds remaining in the down payment account that 
575.6   are not applied to the payment of the costs of the approved 
575.7   project before its final completion must be transferred to the 
575.8   district's debt redemption fund.  
575.9      Sec. 87.  [124D.298] [HEALTH, SAFETY, AND ENVIRONMENTAL 
575.10  MANAGEMENT.] 
575.11     "Health, safety, and environmental management" means school 
575.12  district activities necessary for a district's compliance with 
575.13  state law and rules of the departments of health, labor and 
575.14  industry, public safety, and pollution control agency as well as 
575.15  any related federal standards.  These activities include hazard 
575.16  assessment, required training, record keeping, and program 
575.17  management. 
575.18     Sec. 88.  [124D.30] [CAPITAL EXPENDITURE; HEALTH AND 
575.19  SAFETY.] 
575.20     Subdivision 1.  [HEALTH AND SAFETY PROGRAM.] To receive 
575.21  health and safety revenue for any fiscal year a district must 
575.22  submit to the commissioner an application for aid and levy by 
575.23  the date determined by the commissioner.  The application may be 
575.24  for hazardous substance removal, fire and life safety code 
575.25  repairs, labor and industry regulated facility and equipment 
575.26  violations, and health, safety, and environmental management.  
575.27  The application must include a health and safety program adopted 
575.28  by the school district board.  The program must include the 
575.29  estimated cost, per building, of the program by fiscal year. 
575.30     Subd. 2.  [CONTENTS OF PROGRAM.] A district must adopt a 
575.31  health and safety program.  The program must include plans, 
575.32  where applicable, for hazardous substance removal, fire and life 
575.33  safety code repairs, regulated facility and equipment 
575.34  violations, and health, safety, and environmental management.  
575.35     (a) A hazardous substance plan must contain provisions for 
575.36  the removal or encapsulation of asbestos from school buildings 
576.1   or property, asbestos-related repairs, cleanup and disposal of 
576.2   polychlorinated biphenyls found in school buildings or property, 
576.3   and cleanup, removal, disposal, and repairs related to storing 
576.4   heating fuel or transportation fuels such as alcohol, gasoline, 
576.5   fuel, oil, and special fuel, as defined in section 296.01.  If a 
576.6   district has already developed a plan for the removal or 
576.7   encapsulation of asbestos as required by the federal Asbestos 
576.8   Hazard Emergency Response Act of 1986, the district may use a 
576.9   summary of that plan, which includes a description and schedule 
576.10  of response actions, for purposes of this section.  The plan 
576.11  must also contain provisions to make modifications to existing 
576.12  facilities and equipment necessary to limit personal exposure to 
576.13  hazardous substances, as regulated by the federal Occupational 
576.14  Safety and Health Administration under Code of Federal 
576.15  Regulations, title 29, part 1910, subpart Z; or is determined by 
576.16  the commissioner to present a significant risk to district staff 
576.17  or student health and safety as a result of foreseeable use, 
576.18  handling, accidental spill, exposure, or contamination. 
576.19     (b) A fire and life safety plan must contain a description 
576.20  of the current fire and life safety code violations, a plan for 
576.21  the removal or repair of the fire and life safety hazard, and a 
576.22  description of safety preparation and awareness procedures to be 
576.23  followed until the hazard is fully corrected. 
576.24     (c) A facilities and equipment violation plan must contain 
576.25  provisions to correct health and safety hazards as provided in 
576.26  department of labor and industry standards pursuant to section 
576.27  182.655.  
576.28     (d) A health, safety, and environmental management plan 
576.29  must contain a description of training, record keeping, hazard 
576.30  assessment, and program management as defined in section 124.829.
576.31     (e) A plan to test for and mitigate radon produced hazards. 
576.32     Subd. 3.  [HEALTH AND SAFETY REVENUE.] A district's health 
576.33  and safety revenue for a fiscal year equals: 
576.34     (1) the sum of (a) the total approved cost of the 
576.35  district's hazardous substance plan for fiscal years 1985 
576.36  through 1989, plus (b) the total approved cost of the district's 
577.1   health and safety program for fiscal year 1990 through the 
577.2   fiscal year to which the levy is attributable, minus 
577.3      (2) the sum of (a) the district's total hazardous substance 
577.4   aid and levy for fiscal years 1985 through 1989 under sections 
577.5   124.245 and 275.125, subdivision 11c, plus (b) the district's 
577.6   health and safety revenue under this subdivision, for years 
577.7   before the fiscal year to which the levy is attributable, plus 
577.8   (c) the amount of other federal, state, or local receipts for 
577.9   the district's hazardous substance or health and safety programs 
577.10  for fiscal year 1985 through the fiscal year to which the levy 
577.11  is attributable. 
577.12     Subd. 4.  [HEALTH AND SAFETY LEVY.] To receive health and 
577.13  safety revenue, a district may levy an amount equal to the 
577.14  district's health and safety revenue as defined in subdivision 3 
577.15  multiplied by the lesser of one, or the ratio of the quotient 
577.16  derived by dividing the adjusted net tax capacity of the 
577.17  district for the year preceding the year the levy is certified 
577.18  by the actual pupil units in the district for the school year to 
577.19  which the levy is attributable, to $4,707.50. 
577.20     Subd. 5.  [HEALTH AND SAFETY AID.] A district's health and 
577.21  safety aid is the difference between its health and safety 
577.22  revenue and its health and safety levy.  If a district does not 
577.23  levy the entire amount permitted, health and safety aid must be 
577.24  reduced in proportion to the actual amount levied.  Health and 
577.25  safety aid may not be reduced as a result of reducing a 
577.26  district's health and safety levy according to section 121.912.  
577.27     Subd. 6.  [USES OF HEALTH AND SAFETY REVENUE.] Health and 
577.28  safety revenue may be used only for approved expenditures 
577.29  necessary to correct fire safety hazards, life safety hazards, 
577.30  or for the removal or encapsulation of asbestos from school 
577.31  buildings or property, asbestos-related repairs, cleanup and 
577.32  disposal of polychlorinated biphenyls found in school buildings 
577.33  or property, or the cleanup, removal, disposal, and repairs 
577.34  related to storing heating fuel or transportation fuels such as 
577.35  alcohol, gasoline, fuel oil, and special fuel, as defined in 
577.36  section 296.01, labor and industry regulated facility and 
578.1   equipment hazards, and health, safety, and environmental 
578.2   management.  Health and safety revenue must not be used for the 
578.3   construction of new facilities or the purchase of portable 
578.4   classrooms.  The revenue may not be used for a building or 
578.5   property or part of a building or property used for 
578.6   post-secondary instruction or administration or for a purpose 
578.7   unrelated to elementary and secondary education. 
578.8      Subd. 7.  [PRORATION.] In the event that the health and 
578.9   safety aid available for any year is prorated, a district having 
578.10  its aid prorated may levy an additional amount equal to the 
578.11  amount not paid by the state due to proration. 
578.12     Subd. 8.  [HEALTH, SAFETY, AND ENVIRONMENTAL MANAGEMENT 
578.13  COST.] (a) A district's cost for health, safety, and 
578.14  environmental management is limited to the lesser of:  
578.15     (1) actual cost to implement their plan; or 
578.16     (2) an amount determined by the commissioner, based on 
578.17  enrollment, building age, and size. 
578.18     (b) Effective July 1, 1993, the department may contract 
578.19  with regional service organizations, private contractors, 
578.20  Minnesota safety council, or state agencies to provide 
578.21  management assistance to school districts for health and safety 
578.22  capital projects.  Management assistance is the development of 
578.23  written programs for the identification, recognition and control 
578.24  of hazards, and prioritization and scheduling of district health 
578.25  and safety capital projects. 
578.26     (c) Notwithstanding paragraph (b), the department may 
578.27  approve revenue, up to the limit defined in paragraph (a) for 
578.28  districts having an approved health, safety, and environmental 
578.29  management plan that uses district staff to accomplish 
578.30  coordination and provided services. 
578.31     Sec. 89.  [124D.304] [HANDICAPPED ACCESS AND FIRE SAFETY 
578.32  IMPROVEMENTS TO SCHOOL BUILDINGS.] 
578.33     Subdivision 1.  [REMOVAL OF ARCHITECTURAL BARRIERS.] If a 
578.34  board has insufficient money in its capital expenditure fund to 
578.35  remove architectural barriers from a building it owns in order 
578.36  to allow a pupil to attend a school in the pupil's attendance 
579.1   area or to meet the needs of an employee with a disability, a 
579.2   district may submit an application to the commissioner 
579.3   containing at least the following: 
579.4      (1) program modifications that the board considered, such 
579.5   as relocating classrooms, providing an accessible unisex 
579.6   bathroom, providing alternative library resources, or using 
579.7   special equipment, such as bookcarts, and the reasons the 
579.8   modifications were not feasible; 
579.9      (2) a description of the proposed building modifications 
579.10  and the cost of the modifications; and 
579.11     (3) the age and market value of the building. 
579.12     Individuals developing an application for a district shall 
579.13  complete a workshop, developed jointly by the commissioner and 
579.14  the council on disability, about access criteria. 
579.15     In consultation with the council on disability, the 
579.16  commissioner shall develop criteria to determine the 
579.17  cost-effectiveness of removing barriers in older buildings. 
579.18     The commissioner shall approve or disapprove an application 
579.19  within 60 days of receiving it.  
579.20     Subd. 2.  [FIRE SAFETY MODIFICATIONS.] If a district has 
579.21  insufficient money in its capital expenditure fund to make 
579.22  modifications to a school building required by a fire inspection 
579.23  conducted according to section 121.1502, the district may submit 
579.24  an application to the commissioner containing information 
579.25  required by the commissioner.  The commissioner shall approve or 
579.26  disapprove of the application according to criteria established 
579.27  by the commissioner.  The criteria shall take into consideration 
579.28  the cost-effectiveness of making modifications to older 
579.29  buildings. 
579.30     Subd. 3.  [LEVY AUTHORITY.] The district may levy up to 
579.31  $300,000 under this section, as approved by the commissioner.  
579.32  The approved amount may be levied over eight or fewer years. 
579.33     Subd. 4.  [LEVY AUTHORITY IN COMBINED DISTRICTS.] 
579.34  Notwithstanding subdivision 3, a district that has combined or 
579.35  consolidated may levy up to 50 percent times $300,000 times the 
579.36  number of former districts that operated on June 30, 1991, in 
580.1   the area that now makes up the combined or consolidated 
580.2   district.  The approved amount is reduced by any amount levied 
580.3   under subdivision 3 in the consolidated or combined district or 
580.4   in the former districts that make up the consolidated or 
580.5   combined district.  Levy authority under this subdivision 
580.6   expires at the same time as levy authority under subdivision 3. 
580.7      Sec. 90.  [124D.308] [ENERGY EFFICIENCY PROJECTS.] 
580.8      Subdivision 1.  [DEFINITIONS.] The definitions in this 
580.9   subdivision apply to this section. 
580.10     (a) "Energy conservation measure" means a training program 
580.11  or facility alteration designed to reduce energy consumption or 
580.12  operating costs and includes: 
580.13     (1) insulation of the building structure and systems within 
580.14  the building; 
580.15     (2) storm windows and doors, caulking or weatherstripping, 
580.16  multiglazed windows and doors, heat absorbing or heat reflective 
580.17  glazed and coated window and door systems, additional glazing, 
580.18  reductions in glass area, and other window and door system 
580.19  modifications that reduce energy consumption; 
580.20     (3) automatic energy control systems; 
580.21     (4) heating, ventilating, or air conditioning system 
580.22  modifications or replacements; 
580.23     (5) replacement or modifications of lighting fixtures to 
580.24  increase the energy efficiency of the lighting system without 
580.25  increasing the overall illumination of a facility, unless such 
580.26  increase in illumination is necessary to conform to the 
580.27  applicable state or local building code for the lighting system 
580.28  after the proposed modifications are made; 
580.29     (6) energy recovery systems; 
580.30     (7) cogeneration systems that produce steam or forms of 
580.31  energy such as heat, as well as electricity, for use primarily 
580.32  within a building or complex of buildings; 
580.33     (8) energy conservation measures that provide long-term 
580.34  operating cost reductions.  
580.35     (b) "Guaranteed energy savings contract" means a contract 
580.36  for the evaluation and recommendations of energy conservation 
581.1   measures, and for one or more energy conservation measures.  The 
581.2   contract must provide that all payments, except obligations on 
581.3   termination of the contract before its expiration, are to be 
581.4   made over time, but not to exceed 15 years from the date of 
581.5   final installation, and the savings are guaranteed to the extent 
581.6   necessary to make payments for the systems. 
581.7      (c) "Qualified provider" means a person or business 
581.8   experienced in the design, implementation, and installation of 
581.9   energy conservation measures.  A qualified provider to whom the 
581.10  contract is awarded shall give a sufficient bond to the school 
581.11  district for its faithful performance. 
581.12     (d) "Commissioner" means the commissioner of public service.
581.13     Subd. 2.  [ENERGY EFFICIENCY CONTRACT.] (a) Notwithstanding 
581.14  any law to the contrary, a school district may enter into a 
581.15  guaranteed energy savings contract with a qualified provider to 
581.16  significantly reduce energy or operating costs. 
581.17     (b) Before entering into a contract under this subdivision, 
581.18  the board must comply with clauses (1) to (5). 
581.19     (1) The board must seek proposals from multiple qualified 
581.20  providers by publishing notice of the proposed guaranteed energy 
581.21  savings contract in the board's official newspaper and in other 
581.22  publications if the board determines that additional publication 
581.23  is necessary to notify multiple qualified providers. 
581.24     (2) The board must select the qualified provider that best 
581.25  meets the needs of the board.  The board must provide public 
581.26  notice of the meeting at which it will select the qualified 
581.27  provider. 
581.28     (3) The contract between the board and the qualified 
581.29  provider must describe the methods that will be used to 
581.30  calculate the costs of the contract and the operational and 
581.31  energy savings attributable to the contract. 
581.32     (4) The qualified provider shall issue a report to the 
581.33  board giving a description of all costs of installations, 
581.34  modifications, or remodeling, including costs of design, 
581.35  engineering, installation, maintenance, repairs, or debt 
581.36  service, and giving detailed calculations of the amounts by 
582.1   which energy or operating costs will be reduced and the 
582.2   projected payback schedule in years. 
582.3      (5) The board must provide published notice of the meeting 
582.4   in which it proposes to award the contract, the names of the 
582.5   parties to the proposed contract, and the contract's purpose. 
582.6      Subd. 3.  [EVALUATION BY COMMISSIONER.] Upon request of the 
582.7   board, the commissioner of public service shall review the 
582.8   report required in subdivision 2 and provide an evaluation to 
582.9   the board on the proposed contract within 15 working days of 
582.10  receiving the report.  In evaluating the proposed contract, the 
582.11  commissioner shall determine whether the detailed calculations 
582.12  of the costs and of the energy and operating savings are 
582.13  accurate and reasonable.  The commissioner may request 
582.14  additional information about a proposed contract as the 
582.15  commissioner deems necessary.  If the commissioner requests 
582.16  additional information, the commissioner shall not be required 
582.17  to submit an evaluation to the board within fewer than ten 
582.18  working days of receiving the requested information.  
582.19     Subd. 4.  [REVIEW OF SAVINGS UNDER CONTRACT.] Upon request 
582.20  of the board, the commissioner shall conduct a review of the 
582.21  energy and operating cost savings realized under a guaranteed 
582.22  energy savings contract every three years during the period a 
582.23  contract is in effect.  The commissioner shall compare the 
582.24  savings realized under the contract during the period under 
582.25  review with the calculations of savings included in the report 
582.26  required under subdivision 2 and provide an evaluation to the 
582.27  board concerning the performance of the system and the accuracy 
582.28  and reasonableness of the claimed energy and operating cost 
582.29  savings. 
582.30     Subd. 5.  [PAYMENT OF REVIEW EXPENSES.] The commissioner of 
582.31  public service may charge a district requesting services under 
582.32  subdivisions 2a and 2b actual costs incurred by the department 
582.33  of public service while conducting the review, or one-half 
582.34  percent of the total identified project cost, whichever is 
582.35  less.  Before conducting the review, the commissioner shall 
582.36  notify a district requesting review services that expenses will 
583.1   be charged to the district.  The commissioner shall bill the 
583.2   district upon completion of the contract review.  Money 
583.3   collected by the commissioner under this subdivision must be 
583.4   deposited in the general fund.  A district may include the cost 
583.5   of a review by the commissioner under subdivision 2a in a 
583.6   contract made pursuant to this section. 
583.7      Subd. 6.  [CONTRACT PROVISIONS.] Guaranteed energy savings 
583.8   contracts that include a written guarantee that savings will 
583.9   meet or exceed the cost of energy conservation measures is not 
583.10  subject to competitive bidding requirements.  The contract is 
583.11  not subject to section 123.37 or 471.345. 
583.12     Subd. 7.  [DISTRICT ACTION.] A district may enter into a 
583.13  guaranteed energy savings contract with a qualified provider if, 
583.14  after review of the report and the commissioner's evaluation if 
583.15  requested, the board finds that the amount it would spend on the 
583.16  energy conservation measures recommended in the report is not 
583.17  likely to exceed the amount to be saved in energy and operation 
583.18  costs over 15 years from the date of installation if the 
583.19  recommendations in the report were followed, and the qualified 
583.20  provider provides a written guarantee that the energy or 
583.21  operating cost savings will meet or exceed the costs of the 
583.22  system.  The guaranteed energy savings contract may provide for 
583.23  payments over a period of time, not to exceed 15 years.  
583.24  Notwithstanding section 121.912, a district annually may 
583.25  transfer from the general fund to the capital expenditure fund 
583.26  an amount up to the amount saved in energy and operation costs 
583.27  as a result of guaranteed energy savings contracts. 
583.28     Subd. 8.  [INSTALLATION CONTRACTS.] A district may enter 
583.29  into an installment payment contract for the purchase and 
583.30  installation of energy conservation measures.  The contract must 
583.31  provide for payments of not less than 1/15 of the price to be 
583.32  paid within two years from the date of the first operation, and 
583.33  the remaining costs to be paid monthly, not to exceed a 15-year 
583.34  term from the date of the first operation.  
583.35     Subd. 9.  [CONTRACT CONTINUANCE.] Guaranteed energy savings 
583.36  contracts may extend beyond the fiscal year in which they become 
584.1   effective.  The district must include in its annual 
584.2   appropriations measure for each later fiscal year any amounts 
584.3   payable under guaranteed energy savings contracts during the 
584.4   year.  Failure of a board to make such an appropriation does not 
584.5   affect the validity of the guaranteed energy savings contract or 
584.6   the district's obligations under the contracts. 
584.7      Subd. 10.  [PUBLIC INFORMATION.] A guaranteed energy 
584.8   savings contract must provide that all work plans and other 
584.9   information prepared by the qualified provider in relation to 
584.10  the project, including a detailed description of the project, 
584.11  are public data after the contract is entered into.  Information 
584.12  defined as trade secret information under section 13.37, 
584.13  subdivision 1, shall remain nonpublic data.  
584.14     Sec. 91.  [124D.31] [CAPITAL LEVIES.] 
584.15     Subdivision 1.  [TO LEASE BUILDING OR LAND.] When a 
584.16  district finds it economically advantageous to rent or lease a 
584.17  building or land for any instructional purposes or for school 
584.18  storage or furniture repair, and it determines that the capital 
584.19  expenditure facilities revenues authorized under sections 
584.20  124.243 and 124A.22, subdivision 10, are insufficient for this 
584.21  purpose, it may apply to the commissioner for permission to make 
584.22  an additional capital expenditure levy for this purpose.  An 
584.23  application for permission to levy under this subdivision must 
584.24  contain financial justification for the proposed levy, the terms 
584.25  and conditions of the proposed lease, and a description of the 
584.26  space to be leased and its proposed use.  The criteria for 
584.27  approval of applications to levy under this subdivision must 
584.28  include:  the reasonableness of the price, the appropriateness 
584.29  of the space to the proposed activity, the feasibility of 
584.30  transporting pupils to the leased building or land, conformity 
584.31  of the lease to the laws and rules of the state of Minnesota, 
584.32  and the appropriateness of the proposed lease to the space needs 
584.33  and the financial condition of the district.  The commissioner 
584.34  must not authorize a levy under this subdivision in an amount 
584.35  greater than the cost to the district of renting or leasing a 
584.36  building or land for approved purposes.  The proceeds of this 
585.1   levy must not be used for custodial or other maintenance 
585.2   services.  A district may not levy under this subdivision for 
585.3   the purpose of leasing or renting a district-owned building to 
585.4   itself. 
585.5      Subd. 2.  [PRE-JULY 1990 LEASE PURCHASE, INSTALLMENT BUYS.] 
585.6   A district may annually levy the amount needed to make payments 
585.7   required by a lease purchase agreement, installment purchase 
585.8   agreement, or other deferred payment agreement authorized by 
585.9   Minnesota Statutes 1989 Supplement, section 465.71, if:  
585.10     (1) the agreement was approved by the commissioner before 
585.11  July 1, 1990, according to Minnesota Statutes 1989 Supplement, 
585.12  section 275.125, subdivision 11d; or 
585.13     (2) the district levied in 1989 for the payments. 
585.14     Subd. 3.  [COOPERATING DISTRICTS.] A district that has an 
585.15  agreement according to section 122.535 or 122.541 may levy for 
585.16  the repair costs, as approved by the department, of a building 
585.17  located in another district that is a party to the agreement. 
585.18     Subd. 4.  [INTERACTIVE TELEVISION.] (a) A district with its 
585.19  central administrative office located within economic 
585.20  development region one, two, three, four, five, six, seven, 
585.21  eight, nine, and ten may apply to the commissioner for ITV 
585.22  revenue up to the greater of .5 percent of the adjusted net tax 
585.23  capacity of the district or $25,000 for the construction, 
585.24  maintenance, and lease costs of an interactive television system 
585.25  for instructional purposes.  The approval by the commissioner 
585.26  and the application procedures set forth in subdivision 1 shall 
585.27  apply to the revenue in this subdivision.  In granting the 
585.28  approval, the commissioner shall consider whether the district 
585.29  is maximizing efficiency through peak use and off-peak use 
585.30  pricing structures. 
585.31     (b) To obtain ITV revenue, a district may levy an amount 
585.32  not to exceed the district's ITV revenue times the lesser of one 
585.33  or the ratio of: 
585.34     (1) the quotient derived by dividing the adjusted net tax 
585.35  capacity of the district for the year before the year the levy 
585.36  is certified by the actual pupil units in the district for the 
586.1   year to which the levy is attributable; to 
586.2      (2) 100 percent of the equalizing factor as defined in 
586.3   section 124A.02, subdivision 8, for the year to which the levy 
586.4   is attributable. 
586.5      (c) A district's ITV aid is the difference between its ITV 
586.6   revenue and the ITV levy. 
586.7      (d) The revenue in the first year after reorganization for 
586.8   a district that has reorganized under section 122.22, 122.23, or 
586.9   122.241 to 122.247 shall be the greater of: 
586.10     (1) the revenue computed for the reorganized district under 
586.11  paragraph (a), or 
586.12     (2)(i) for two districts that reorganized, 75 percent of 
586.13  the revenue computed as if the districts involved in the 
586.14  reorganization were separate, or 
586.15     (ii) for three or more districts that reorganized, 50 
586.16  percent of the revenue computed as if the districts involved in 
586.17  the reorganization were separate. 
586.18     (e) The revenue in paragraph (d) is increased by the 
586.19  difference between the initial revenue and ITV lease costs for 
586.20  leases that had been entered into by the preexisting districts 
586.21  on the effective date of the consolidation or combination and 
586.22  with a term not exceeding ten years.  This increased revenue is 
586.23  only available for the remaining term of the lease.  However, in 
586.24  no case shall the revenue exceed the amount available had the 
586.25  preexisting districts received revenue separately. 
586.26     Subd. 5.  [ENERGY CONSERVATION.] The district may annually 
586.27  levy, without the approval of a majority of the voters in the 
586.28  district, an amount sufficient to repay the annual principal and 
586.29  interest of the loan made pursuant to sections 216C.37 and 
586.30  298.292 to 298.298.  
586.31     Subd. 6.  [LEASE PURCHASE, INSTALLMENT BUYS.] (a) Upon 
586.32  application to, and approval by, the commissioner in accordance 
586.33  with the procedures and limits in subdivision 1, a district, as 
586.34  defined in this subdivision, may: 
586.35     (1) purchase real or personal property under an installment 
586.36  contract or may lease real or personal property with an option 
587.1   to purchase under a lease purchase agreement, by which 
587.2   installment contract or lease purchase agreement title is kept 
587.3   by the seller or vendor or assigned to a third party as security 
587.4   for the purchase price, including interest, if any; and 
587.5      (2) annually levy the amounts necessary to pay the 
587.6   district's obligations under the installment contract or lease 
587.7   purchase agreement. 
587.8      (b) The obligation created by the installment contract or 
587.9   the lease purchase agreement must not be included in the 
587.10  calculation of net debt for purposes of section 475.53, and does 
587.11  not constitute debt under other law.  An election is not 
587.12  required in connection with the execution of the installment 
587.13  contract or the lease purchase agreement. 
587.14     (c) The proceeds of the levy authorized by this subdivision 
587.15  must not be used to acquire a facility to be primarily used for 
587.16  athletic or school administration purposes. 
587.17     (d) For the purposes of this subdivision, "district" means: 
587.18     (1) a school district required to have a comprehensive plan 
587.19  for the elimination of segregation whose plan has been 
587.20  determined by the commissioner to be in compliance with the 
587.21  state board of education rules relating to equality of 
587.22  educational opportunity and school desegregation; or 
587.23     (2) a school district that participates in a joint program 
587.24  for interdistrict desegregation with a district defined in 
587.25  clause (1) if the facility acquired under this subdivision is to 
587.26  be primarily used for the joint program. 
587.27     (e) Notwithstanding subdivision 1, the prohibition against 
587.28  a levy by a district to lease or rent a district-owned building 
587.29  to itself does not apply to levies otherwise authorized by this 
587.30  subdivision. 
587.31     (f) For the purposes of this subdivision, any references in 
587.32  subdivision 1 to building or land shall include personal 
587.33  property. 
587.34     Sec. 92.  [124D.314] [MISCELLANEOUS LEVIES.] 
587.35     Subdivision 1.  [STATUTORY OBLIGATIONS.] (a) A district may 
587.36  levy the amount authorized for liabilities of dissolved 
588.1   districts pursuant to section 122.45; the amounts necessary to 
588.2   pay the district's obligations under section 268.06, subdivision 
588.3   25; the amounts necessary to pay for job placement services 
588.4   offered to employees who may become eligible for benefits 
588.5   pursuant to section 268.08; the amounts necessary to pay the 
588.6   district's obligations under section 127.05; the amounts 
588.7   authorized by section 122.531; the amounts necessary to pay the 
588.8   district's obligations under section 122.533; and for severance 
588.9   pay required by sections 120.08, subdivision 3, and 122.535, 
588.10  subdivision 6. 
588.11     (b) Each year, a member district of an education district 
588.12  that levies under this subdivision must transfer the amount of 
588.13  revenue certified under paragraph (b) to the education district 
588.14  board according to this subdivision.  By June 20 and November 30 
588.15  of each year, an amount must be transferred equal to: 
588.16     (1) 50 percent times 
588.17     (2) the amount certified in paragraph (b) minus homestead 
588.18  and agricultural credit aid allocated for that levy according to 
588.19  section 273.1398, subdivision 6. 
588.20     Subd. 2.  [DESEGREGATION.] Each year, special school 
588.21  district No. 1, Minneapolis, may levy an amount not to exceed 
588.22  $197 times its actual pupil units for that fiscal year; 
588.23  independent school district No. 625, St. Paul, may levy an 
588.24  amount not to exceed $197 times its actual pupil units for that 
588.25  fiscal year; and independent school district No. 709, Duluth, 
588.26  may levy an amount not to exceed the sum of $660,000 and the 
588.27  amount raised by a tax rate of 2.0 percent times the adjusted 
588.28  net tax capacity of the district.  Notwithstanding section 
588.29  121.904, the entire amount of this levy must be recognized as 
588.30  revenue for the fiscal year in which the levy is certified.  
588.31  This levy must not be considered in computing the aid reduction 
588.32  under section 124.155. 
588.33     Subd. 3.  [RULE COMPLIANCE.] Each year a district that is 
588.34  required to implement a plan according to the requirements of 
588.35  Minnesota Rules, parts 3535.0200 to 3535.2200, may levy an 
588.36  amount not to exceed a net tax rate of 2.0 percent times the 
589.1   adjusted net tax capacity of the district for taxes payable in 
589.2   1991 and thereafter.  A district that levies according to 
589.3   subdivision 2 may not levy according to this subdivision.  
589.4   Notwithstanding section 121.904, the entire amount of this levy 
589.5   must be recognized as revenue for the fiscal year in which the 
589.6   levy is certified.  This levy must not be considered in 
589.7   computing the aid reduction under section 124.155.  
589.8      Subd. 4.  [CRIME RELATED COSTS.] For taxes levied in 1991 
589.9   and subsequent years, payable in 1992 and subsequent years, each 
589.10  district may make a levy on all taxable property located within 
589.11  the district for the purposes specified in this subdivision.  
589.12  The maximum amount which may be levied for all costs under this 
589.13  subdivision shall be equal to $1 multiplied by the population of 
589.14  the school district.  For purposes of this subdivision, 
589.15  "population" of the school district means the same as contained 
589.16  in section 275.14.  The proceeds of the levy must be used for 
589.17  reimbursing the cities and counties who contract with the 
589.18  district for the following purposes:  (1) to pay the costs 
589.19  incurred for the salaries, benefits, and transportation costs of 
589.20  peace officers and sheriffs for liaison services in the 
589.21  district's middle and secondary schools; (2) to pay the costs 
589.22  for a drug abuse prevention program as defined in Minnesota 
589.23  Statutes 1991 Supplement, section 609.101, subdivision 3, 
589.24  paragraph (f), in the elementary schools; or (3) to pay the 
589.25  costs for a gang resistance education training curriculum in the 
589.26  middle schools.  The district must initially attempt to contract 
589.27  for these services with the police department of each city or 
589.28  the sheriff's department of the county within the district 
589.29  containing the school receiving the services.  If a local police 
589.30  department or a county sheriff's department does not wish to 
589.31  provide the necessary services, the district may contract for 
589.32  these services with any other police or sheriff's department 
589.33  located entirely or partially within the school district's 
589.34  boundaries.  The levy authorized under this subdivision is not 
589.35  included in determining the district's levy limitations. 
589.36     Subd. 5.  [ICE ARENA LEVY.] (a) Each year, an independent 
590.1   school district operating and maintaining an ice arena, may levy 
590.2   for the net operational costs of the ice arena.  The levy may 
590.3   not exceed the net actual costs of operation of the arena for 
590.4   the previous year.  Net actual costs are defined as operating 
590.5   costs less any operating revenues. 
590.6      (b) A district operating and maintaining an ice arena must 
590.7   demonstrate to the satisfaction of the office of monitoring in 
590.8   the department that the district will offer equal sports 
590.9   opportunities for male and female students to use its ice arena, 
590.10  particularly in areas of access to prime practice time, team 
590.11  support, and providing junior varsity and younger level teams 
590.12  for girls' ice sports and ice sports offerings. 
590.13     Subd. 6.  [ABATEMENT LEVY.] (a) Each year, a school 
590.14  district may levy an amount to replace the net revenue lost to 
590.15  abatements that have occurred under chapter 278, section 270.07, 
590.16  375.192, or otherwise.  The maximum abatement levy is the sum of:
590.17     (1) the amount of the net revenue loss determined under 
590.18  section 124.214, subdivision 2, that is not paid in state aid 
590.19  including any aid amounts not paid due to proration; 
590.20     (2) the difference of (i) the amount of any abatements that 
590.21  have been reported by the county auditor for the first six 
590.22  months of the calendar year during which the abatement levy is 
590.23  certified that the district chooses to levy, (ii) less any 
590.24  amount actually levied under this clause that was certified in 
590.25  the previous calendar year for the first six months of the 
590.26  previous calendar year; and 
590.27     (3) an amount equal to any interest paid on abatement 
590.28  refunds.  
590.29     (b) A district may spread this levy over a period not to 
590.30  exceed three years. 
590.31     By July 15, the county auditor shall separately report the 
590.32  abatements that have occurred during the first six calendar 
590.33  months of that year to the commissioner and each district 
590.34  located within the county. 
590.35     Sec. 93.  [124D.318] [OPERATING DEBT LEVIES.] 
590.36     Subdivision 1.  [1977 STATUTORY OPERATING DEBT.] (1) In 
591.1   each year in which so required by this subdivision, a district 
591.2   must make an additional levy to eliminate its statutory 
591.3   operating debt, determined as of June 30, 1977, and certified 
591.4   and adjusted by the commissioner.  This levy shall not be made 
591.5   in more than 30 successive years and each year before it is 
591.6   made, it must be approved by the commissioner and the approval 
591.7   shall specify its amount.  This levy shall be an amount which is 
591.8   equal to the amount raised by a levy of a net tax rate of 1.66 
591.9   percent times the adjusted net tax capacity of the district for 
591.10  the preceding year for taxes payable in 1991 and thereafter; 
591.11  provided that in the last year in which the district is required 
591.12  to make this levy, it must levy an amount not to exceed the 
591.13  amount raised by a levy of a net tax rate of 1.66 percent times 
591.14  the adjusted net tax capacity of the district for the preceding 
591.15  year for taxes payable in 1991 and thereafter.  When the sum of 
591.16  the cumulative levies made pursuant to this subdivision and 
591.17  transfers made according to section 121.912, subdivision 4, 
591.18  equals an amount equal to the statutory operating debt of the 
591.19  district, the levy shall be discontinued. 
591.20     (2) The district must establish a special account in the 
591.21  general fund which shall be designated "appropriated fund 
591.22  balance reserve account for purposes of reducing statutory 
591.23  operating debt" on its books and records.  This account shall 
591.24  reflect the levy authorized pursuant to this subdivision.  The 
591.25  proceeds of this levy must be used only for cash flow 
591.26  requirements and must not be used to supplement district 
591.27  revenues or income for the purposes of increasing the district's 
591.28  expenditures or budgets. 
591.29     (3) A district which is required to levy pursuant to this 
591.30  subdivision must certify the maximum levy allowable under 
591.31  section 124A.23, subdivision 2, in that same year. 
591.32     (4) Each district must make permanent fund balance 
591.33  transfers so that the total statutory operating debt of the 
591.34  district is reflected in the general fund as of June 30, 1977. 
591.35     Subd. 2.  [1983 OPERATING DEBT.] (1) Each year, a district 
591.36  may make an additional levy to eliminate a deficit in the net 
592.1   unappropriated operating funds of the district, determined as of 
592.2   June 30, 1983, and certified and adjusted by the commissioner.  
592.3   This levy may in each year be an amount not to exceed the amount 
592.4   raised by a levy of a net tax rate of 1.85 percent times the 
592.5   adjusted net tax capacity for taxes payable in 1991 and 
592.6   thereafter of the district for the preceding year as determined 
592.7   by the commissioner.  However, the total amount of this levy for 
592.8   all years it is made must not exceed the lesser of (a) the 
592.9   amount of the deficit in the net unappropriated operating funds 
592.10  of the district as of June 30, 1983, or (b) the amount of the 
592.11  aid reduction, according to Laws 1981, Third Special Session 
592.12  chapter 2, article 2, section 2, but excluding clauses (l), (m), 
592.13  (n), (o), and (p), and Laws 1982, Third Special Session chapter 
592.14  1, article 3, section 6, to the district in fiscal year 1983.  
592.15  When the cumulative levies made pursuant to this subdivision 
592.16  equal the total amount permitted by this subdivision, the levy 
592.17  must be discontinued.  
592.18     (2) The proceeds of this levy must be used only for cash 
592.19  flow requirements and must not be used to supplement district 
592.20  revenues or income for the purposes of increasing the district's 
592.21  expenditures or budgets.  
592.22     (3) A district that levies pursuant to this subdivision 
592.23  must certify the maximum levy allowable under section 124A.23, 
592.24  subdivisions 2 and 2a, in that same year. 
592.25     Subd. 3.  [1985 OPERATING DEBT.] (1) Each year, a district 
592.26  may levy to eliminate a deficit in the net unappropriated 
592.27  balance in the general fund of the district, determined as of 
592.28  June 30, 1985, and certified and adjusted by the commissioner.  
592.29  Each year this levy may be an amount not to exceed the amount 
592.30  raised by a levy of a net tax rate of 1.85 percent times the 
592.31  adjusted net tax capacity for taxes payable in 1991 and 
592.32  thereafter of the district for the preceding year.  However, the 
592.33  total amount of this levy for all years it is made must not 
592.34  exceed the amount of the deficit in the net unappropriated 
592.35  balance in the general fund of the district as of June 30, 
592.36  1985.  When the cumulative levies made pursuant to this 
593.1   subdivision equal the total amount permitted by this 
593.2   subdivision, the levy shall be discontinued.  
593.3      (2) A district, if eligible, may levy under this 
593.4   subdivision or subdivision 2 but not both. 
593.5      (3) The proceeds of this levy must be used only for cash 
593.6   flow requirements and must not be used to supplement district 
593.7   revenues or income for the purposes of increasing the district's 
593.8   expenditures or budgets.  
593.9      (4) A district that levies pursuant to this subdivision 
593.10  must certify the maximum levy allowable under section 124A.23, 
593.11  subdivision 2, in that same year. 
593.12     Subd. 4.  [1992 OPERATING DEBT.] (a) For taxes payable for 
593.13  calendar year 2003 and earlier, a district that has filed a plan 
593.14  pursuant to section 121.917, subdivision 4, may levy, with the 
593.15  approval of the commissioner, to eliminate a deficit in the net 
593.16  unappropriated balance in the operating funds of the district, 
593.17  determined as of June 30, 1992, and certified and adjusted by 
593.18  the commissioner.  Each year this levy may be an amount not to 
593.19  exceed the lesser of: 
593.20     (1) an amount raised by a levy of a net tax rate of one 
593.21  percent times the adjusted net tax capacity; or 
593.22     (2) $100,000. 
593.23  This amount must be reduced by referendum revenue authorized 
593.24  under section 124A.03 pursuant to the plan filed under section 
593.25  121.917.  However, the total amount of this levy for all years 
593.26  it is made must not exceed the amount of the deficit in the net 
593.27  unappropriated balance in the operating funds of the district as 
593.28  of June 30, 1992.  When the cumulative levies made pursuant to 
593.29  this subdivision equal the total amount permitted by this 
593.30  subdivision, the levy must be discontinued.  
593.31     (b) A district, if eligible, may levy under this 
593.32  subdivision or subdivision 2 or 3, or under section 122.531, 
593.33  subdivision 4a, or Laws 1992, chapter 499, article 7, sections 
593.34  16 or 17, but not under more than one. 
593.35     (c) The proceeds of this levy must be used only for cash 
593.36  flow requirements and must not be used to supplement district 
594.1   revenues or income for the purposes of increasing the district's 
594.2   expenditures or budgets.  
594.3      (d) A district that levies pursuant to this subdivision 
594.4   must certify the maximum levy allowable under section 124A.23, 
594.5   subdivision 2, in that same year. 
594.6      Sec. 94.  [124D.32] [BENEFITS LEVIES.] 
594.7      Subdivision 1.  [HEALTH INSURANCE.] (a) A district may levy 
594.8   the amount necessary to make employer contributions for 
594.9   insurance for retired employees under this subdivision.  
594.10  Notwithstanding section 121.904, 50 percent of the amount levied 
594.11  must be recognized as revenue for the fiscal year in which the 
594.12  levy is certified.  This levy must not be considered in 
594.13  computing the aid reduction under section 124.155. 
594.14     (b) The school board of a joint vocational technical 
594.15  district formed under sections 136C.60 to 136C.69 and the school 
594.16  board of a school district may provide employer-paid hospital, 
594.17  medical, and dental benefits to a person who: 
594.18     (1) is eligible for employer-paid insurance under 
594.19  collective bargaining agreements or personnel plans in effect on 
594.20  June 30, 1992; 
594.21     (2) has at least 25 years of service credit in the public 
594.22  pension plan of which the person is a member on the day before 
594.23  retirement or, in the case of a teacher, has a total of at least 
594.24  25 years of service credit in the teachers retirement 
594.25  association, a first-class city teacher retirement fund, or any 
594.26  combination of these; 
594.27     (3) upon retirement is immediately eligible for a 
594.28  retirement annuity; 
594.29     (4) is at least 55 and not yet 65 years of age; and 
594.30     (5) retires on or after May 15, 1992, and before July 21, 
594.31  1992. 
594.32     A school board paying insurance under this subdivision may 
594.33  not exclude any eligible employees. 
594.34     (c) An employee who is eligible both for the health 
594.35  insurance benefit under this subdivision and for an early 
594.36  retirement incentive under a collective bargaining agreement or 
595.1   personnel plan established by the employer must select either 
595.2   the early retirement incentive provided under the collective 
595.3   bargaining agreement personnel plan or the incentive provided 
595.4   under this subdivision, but may not receive both.  For purposes 
595.5   of this subdivision, a person retires when the person terminates 
595.6   active employment and applies for retirement benefits.  The 
595.7   retired employee is eligible for single and dependent coverages 
595.8   and employer payments to which the person was entitled 
595.9   immediately before retirement, subject to any changes in 
595.10  coverage and employer and employee payments through collective 
595.11  bargaining or personnel plans, for employees in positions 
595.12  equivalent to the position from which the employee retired.  The 
595.13  retired employee is not eligible for employer-paid life 
595.14  insurance.  Eligibility ceases when the retired employee attains 
595.15  the age of 65, or when the employee chooses not to receive the 
595.16  retirement benefits for which the employee has applied, or when 
595.17  the employee is eligible for employer-paid health insurance from 
595.18  a new employer.  Coverages must be coordinated with relevant 
595.19  health insurance benefits provided through the federally 
595.20  sponsored Medicare program.  
595.21     (d) Unilateral implementation of this section by a public 
595.22  employer is not an unfair labor practice for purposes of chapter 
595.23  179A.  The authority provided in this subdivision for an 
595.24  employer to pay health insurance costs for certain retired 
595.25  employees is not subject to the limits in section 179A.20, 
595.26  subdivision 2a. 
595.27     (e) If a school district levies according to this 
595.28  subdivision, it may not also levy according to section 122.531, 
595.29  subdivision 9, for eligible employees. 
595.30     Subd. 2.  [RETIRED EMPLOYEE HEALTH BENEFITS.] For taxes 
595.31  payable in 1996, 1997, 1998, and 1999 only, a district may levy 
595.32  an amount up to the amount the district is required by the 
595.33  collective bargaining agreement in effect on March 30, 1992, to 
595.34  pay for health insurance or unreimbursed medical expenses for 
595.35  licensed and nonlicensed employees who have terminated services 
595.36  in the employing district and withdrawn from active teaching 
596.1   service or other active service, as applicable, before July 1, 
596.2   1992.  The total amount of the levy each year may not exceed 
596.3   $300,000.  
596.4      Notwithstanding section 121.904, 50 percent of the proceeds 
596.5   of this levy must be recognized in the fiscal year in which it 
596.6   is certified. 
596.7      Subd. 3.  [RETIREMENT LEVIES.] (1) In addition to the 
596.8   excess levy authorized in 1976 any district within a city of the 
596.9   first class which was authorized in 1975 to make a retirement 
596.10  levy under Minnesota Statutes 1974, section 275.127 and chapter 
596.11  422A may levy an amount per pupil unit which is equal to the 
596.12  amount levied in 1975 payable 1976, under Minnesota Statutes 
596.13  1974, section 275.127 and chapter 422A, divided by the number of 
596.14  pupil units in the district in 1976-1977. 
596.15     (2) In 1979 and each year thereafter, any district which 
596.16  qualified in 1976 for an extra levy under paragraph (1) shall be 
596.17  allowed to levy the same amount as levied for retirement in 1978 
596.18  under this clause reduced each year by ten percent of the 
596.19  difference between the amount levied for retirement in 1971 
596.20  under Minnesota Statutes 1971, sections 275.127 and 422.01 to 
596.21  422.54 and the amount levied for retirement in 1975 under 
596.22  Minnesota Statutes 1974, section 275.127 and chapter 422A. 
596.23     (3) In 1991 and each year thereafter, a district to which 
596.24  this subdivision applies may levy an additional amount required 
596.25  for contributions to the Minneapolis employees retirement fund 
596.26  as a result of the maximum dollar amount limitation on state 
596.27  contributions to the fund imposed under section 422A.101, 
596.28  subdivision 3.  The additional levy must not exceed the most 
596.29  recent amount certified by the board of the Minneapolis 
596.30  employees retirement fund as the district's share of the 
596.31  contribution requirement in excess of the maximum state 
596.32  contribution under section 422A.101, subdivision 3.  
596.33     (4) For taxes payable in 1994 and thereafter, special 
596.34  school district No. 1, Minneapolis, and independent school 
596.35  district No. 625, St. Paul, may levy for the increase in the 
596.36  employer retirement fund contributions, under Laws 1992, chapter 
597.1   598, article 5, section 1.  Notwithstanding section 121.904, the 
597.2   entire amount of this levy may be recognized as revenue for the 
597.3   fiscal year in which the levy is certified.  This levy must not 
597.4   be considered in computing the aid reduction under section 
597.5   124.155. 
597.6      (5) If the employer retirement fund contributions under 
597.7   section 354A.12, subdivision 2a, are increased for fiscal year 
597.8   1994 or later fiscal years, special school district No. 1, 
597.9   Minneapolis, and independent school district No. 625, St. Paul, 
597.10  may levy in payable 1994 or later an amount equal to the amount 
597.11  derived by applying the net increase in the employer retirement 
597.12  fund contribution rate of the respective teacher retirement fund 
597.13  association between fiscal year 1993 and the fiscal year 
597.14  beginning in the year after the levy is certified to the total 
597.15  covered payroll of the applicable teacher retirement fund 
597.16  association.  Notwithstanding section 121.904, the entire amount 
597.17  of this levy may be recognized as revenue for the fiscal year in 
597.18  which the levy is certified.  This levy must not be considered 
597.19  in computing the aid reduction under section 124.155.  If an 
597.20  applicable school district levies under this paragraph, they may 
597.21  not levy under paragraph (4). 
597.22     (6) In addition to the levy authorized under paragraph (5), 
597.23  special school district No. 1, Minneapolis, may also levy 
597.24  payable in 1997 or later an amount equal to the contributions 
597.25  under section 423A.02, subdivision 3, and may also levy in 
597.26  payable 1994 or later an amount equal to the state aid 
597.27  contribution under section 354A.12, subdivision 3b.  Independent 
597.28  school district No. 625, St. Paul, may levy payable in 1997 or 
597.29  later an amount equal to the supplemental contributions under 
597.30  section 423A.02, subdivision 3.  Notwithstanding section 
597.31  121.904, the entire amount of these levies may be recognized as 
597.32  revenue for the fiscal year in which the levy is certified.  
597.33  These levies must not be considered in computing the aid 
597.34  reduction under section 124.155. 
597.35     Subd. 4.  [MINNEAPOLIS HEALTH INSURANCE SUBSIDY.] Each year 
597.36  special school district No. 1, Minneapolis, may make an 
598.1   additional levy not to exceed the amount raised by a net tax 
598.2   rate of .10 percent times the adjusted net tax capacity for 
598.3   taxes payable in 1991 and thereafter of the property in the 
598.4   district for the preceding year.  The proceeds may be used only 
598.5   to subsidize health insurance costs for eligible teachers as 
598.6   provided in this section.  
598.7      "Eligible teacher" means a retired teacher who was a basic 
598.8   member of the Minneapolis teachers retirement fund association, 
598.9   who retired before May 1, 1974, or who had 20 or more years of 
598.10  basic member service in the Minneapolis teacher retirement fund 
598.11  association and retired before June 30, 1983, and who is not 
598.12  eligible to receive the hospital insurance benefits of the 
598.13  federal Medicare program of the Social Security Act without 
598.14  payment of a monthly premium.  The district must notify eligible 
598.15  teachers that a subsidy is available.  To obtain a subsidy, an 
598.16  eligible teacher must submit to the school district a copy of 
598.17  receipts for health insurance premiums paid.  The district must 
598.18  disburse the health insurance premium subsidy to each eligible 
598.19  teacher according to a schedule determined by the district, but 
598.20  at least annually.  An eligible teacher may receive a subsidy up 
598.21  to an amount equal to the lesser of 90 percent of the cost of 
598.22  the eligible teacher's health insurance or up to 90 percent of 
598.23  the cost of the number two qualified plan of health coverage for 
598.24  individual policies made available by the Minnesota 
598.25  comprehensive health association under chapter 62E.  
598.26     If funds remaining from the previous year's health 
598.27  insurance subsidy levy, minus the previous year's required 
598.28  subsidy amount, are sufficient to pay the estimated current year 
598.29  subsidy, the levy must be discontinued until the remaining funds 
598.30  are estimated by the school board to be insufficient to pay the 
598.31  subsidy. 
598.32     This subdivision does not extend benefits to teachers who 
598.33  retire after June 30, 1983, and does not create a contractual 
598.34  right or claim for altering the benefits in this subdivision.  
598.35  This subdivision does not restrict the district's right to 
598.36  modify or terminate coverage under this subdivision. 
599.1      Sec. 95.  [124D.324] [TAX LEVY FOR UNPAID JUDGMENT.] 
599.2      If such judgment is not satisfied, or stayed by appeal or 
599.3   otherwise, before the next annual meeting of the district, a 
599.4   certified copy thereof may be presented at its annual meeting, 
599.5   whereupon the district shall cause the amount of the judgment, 
599.6   with interest, to be added to the tax of the district.  If such 
599.7   tax is not levied and certified to the county auditor on or 
599.8   before October 1 next after presentation, a certified copy 
599.9   thereof may be filed with such auditor at any time before the 
599.10  auditor has extended the tax of such district, with an affidavit 
599.11  showing the amount remaining unpaid thereon and the fact of such 
599.12  presentation to the district.  Thereupon the auditor shall at 
599.13  once levy and extend such amount as a tax upon the property 
599.14  taxable within the district.  By mutual agreement between the 
599.15  district and the judgment creditor the levy may be spread 
599.16  equally over a period of more than one year.  
599.17     Sec. 96.  [124D.328] [LEVY PROCEDURE.] 
599.18     Subdivision 1.  [CERTIFY LEVY LIMITS.] By September 8, the 
599.19  commissioner shall notify the school districts of their levy 
599.20  limits.  The commissioner shall certify to the county auditors 
599.21  the levy limits for all districts headquartered in the 
599.22  respective counties together with adjustments for errors in 
599.23  levies not penalized pursuant to section 124.918, subdivision 3, 
599.24  as well as adjustments to final pupil unit counts.  A district 
599.25  may require the commissioner to review the certification and to 
599.26  present evidence in support of modification of the certification.
599.27     The county auditor shall reduce levies for any excess of 
599.28  levies over levy limitations pursuant to section 275.16.  Such 
599.29  reduction in excess levies may, at the discretion of the school 
599.30  district, be spread over two calendar years. 
599.31     Subd. 2.  [NOTICE TO COMMISSIONER; FORMS.] By October 7 of 
599.32  each year each district must notify the commissioner of the 
599.33  proposed levies in compliance with the levy limitations of this 
599.34  chapter and chapters 124A, 124B, and 136D.  By January 15 of 
599.35  each year each district must notify the commissioner of the 
599.36  final levies certified.  The commissioner shall prescribe the 
600.1   form of these notifications and may request any additional 
600.2   information necessary to compute certified levy amounts. 
600.3      Subd. 3.  [ADJUSTMENTS.] If any district levy is found to 
600.4   be excessive as a result of a decision of the tax court or a 
600.5   redetermination by the commissioner of revenue under section 
600.6   124.2131, subdivisions 2 to 11, or for any other reason, the 
600.7   amount of the excess must be deducted from the levy certified in 
600.8   the next year for the same purpose.  If no levy is certified in 
600.9   the next year for the same purpose or if the amount certified is 
600.10  less than the amount of the excess, the excess must be deducted 
600.11  from that levy and the levy certified pursuant to section 
600.12  124A.23, subdivision 2.  If the amount of any aid would have 
600.13  been increased in a prior year as a result of a decision of the 
600.14  tax court or a redetermination by the commissioner of revenue, 
600.15  the amount of the increase shall be added to the amount of 
600.16  current aid for the same purposes. 
600.17     Subd. 4.  [APPLICABILITY.] Notwithstanding any other 
600.18  charter provision, general or special laws to the contrary, 
600.19  every school district in the state shall abide by the terms and 
600.20  provisions of this section and chapter 124A. 
600.21     Subd. 5.  [ESTIMATES.] The computation of levy limitations 
600.22  pursuant to this chapter and chapters 124A, 124B, 136C, and 136D 
600.23  shall be based on estimates where necessary.  If as a result of 
600.24  using estimates for these computations the amount of any levy is 
600.25  different from the amount which could actually have been levied 
600.26  if actual data had been available, levy limitations in the first 
600.27  year when the actual data is known shall be adjusted to reflect 
600.28  for this difference.  The amount of any adjustment to levy 
600.29  limitations pursuant to this subdivision shall be recognized as 
600.30  revenue in the school year when the levy for which the levy 
600.31  limitation is so adjusted is recognized as revenue. 
600.32     Subd. 6.  [ADJUSTMENTS FOR LAW CHANGES.] Whenever a change 
600.33  enacted in law changes the levy authority for a school district 
600.34  or an intermediate school district for a fiscal year after the 
600.35  levy for that fiscal year has been certified by the district 
600.36  under section 275.07, the department must adjust the next levy 
601.1   certified by the district by the amount of the change in levy 
601.2   authority for that fiscal year resulting from the change.  
601.3   Notwithstanding section 121.904, the entire amount for fiscal 
601.4   year 1992 and 50 percent for fiscal years thereafter of the levy 
601.5   adjustment must be recognized as revenue in the fiscal year the 
601.6   levy is certified, if sufficient levy resources are available 
601.7   under generally accepted accounting principles in the district 
601.8   fund where the adjustment is to occur.  Districts that do not 
601.9   have sufficient levy resources available in the fund where the 
601.10  adjustment is to occur must recognize in the fiscal year the 
601.11  levy is certified an amount equal to the levy resources 
601.12  available.  The remaining adjustment amount must be recognized 
601.13  as revenue in the fiscal year after the levy is certified. 
601.14     Subd. 7.  [REPORTING.] For each tax settlement, the county 
601.15  auditor shall report to each school district by fund, the 
601.16  district tax settlement revenue defined in section 121.904, 
601.17  subdivision 4a, clause (a), and the amount levied pursuant to 
601.18  section 124.914, subdivision 1, on the form specified in section 
601.19  276.10.  The county auditor shall send to the district a copy of 
601.20  the spread levy report specified in section 275.124. 
601.21     Subd. 8.  [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 
601.22  Reductions in levies pursuant to section 124.918, subdivision 1, 
601.23  and section 273.138, must be made prior to the reductions in 
601.24  clause (2). 
601.25     (2) Notwithstanding any other law to the contrary, 
601.26  districts which received payments pursuant to sections 298.018; 
601.27  298.23 to 298.28, except an amount distributed under section 
601.28  298.28, subdivision 4, paragraph (c), clause (ii); 298.34 to 
601.29  298.39; 298.391 to 298.396; 298.405; and any law imposing a tax 
601.30  upon severed mineral values, or recognized revenue pursuant to 
601.31  section 477A.15; must not include a portion of these aids in 
601.32  their permissible levies pursuant to those sections, but instead 
601.33  must reduce the permissible levies authorized by this chapter 
601.34  and chapter 124A by the greater of the following: 
601.35     (a) an amount equal to 50 percent of the total dollar 
601.36  amount of the payments received pursuant to those sections or 
602.1   revenue recognized pursuant to section 477A.15 in the previous 
602.2   fiscal year; or 
602.3      (b) an amount equal to the total dollar amount of the 
602.4   payments received pursuant to those sections or revenue 
602.5   recognized pursuant to section 477A.15 in the previous fiscal 
602.6   year less the product of the same dollar amount of payments or 
602.7   revenue times the ratio of the maximum levy allowed the district 
602.8   under Minnesota Statutes 1986, sections 124A.03, subdivision 2, 
602.9   124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 
602.10  subdivision 3a, 124A.12, subdivision 3a, and 124A.14, 
602.11  subdivision 5a, to the total levy allowed the district under 
602.12  this section and Minnesota Statutes 1986, sections 124A.03, 
602.13  124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 
602.14  subdivision 3a, 124A.12, subdivision 3a, 124A.14, subdivision 
602.15  5a, and 124A.20, subdivision 2, for levies certified in 1986. 
602.16     (3) No reduction pursuant to this subdivision shall reduce 
602.17  the levy made by the district pursuant to section 124A.23, to an 
602.18  amount less than the amount raised by a levy of a net tax rate 
602.19  of 6.82 percent times the adjusted net tax capacity for taxes 
602.20  payable in 1990 and thereafter of that district for the 
602.21  preceding year as determined by the commissioner.  The amount of 
602.22  any increased levy authorized by referendum pursuant to section 
602.23  124A.03, subdivision 2, shall not be reduced pursuant to this 
602.24  subdivision.  The amount of any levy authorized by section 
602.25  124.912, subdivision 1, to make payments for bonds issued and 
602.26  for interest thereon, shall not be reduced pursuant to this 
602.27  subdivision.  
602.28     (4) Before computing the reduction pursuant to this 
602.29  subdivision of the capital expenditure facilities levy 
602.30  authorized by section 124.243, the capital expenditure equipment 
602.31  levy authorized by section 124.244, the health and safety levy 
602.32  authorized by sections 124.83 and 124.91, subdivision 6, the 
602.33  commissioner shall ascertain from each affected school district 
602.34  the amount it proposes to levy under each section or 
602.35  subdivision.  The reduction must be computed on the basis of the 
602.36  amount so ascertained. 
603.1      (5) Notwithstanding any law to the contrary, any amounts 
603.2   received by districts in any fiscal year pursuant to sections 
603.3   298.018; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 
603.4   298.405; or any law imposing a tax on severed mineral values; 
603.5   and not deducted from general education aid pursuant to section 
603.6   124A.035, subdivision 5, clause (2), and not applied to reduce 
603.7   levies pursuant to this subdivision shall be paid by the 
603.8   district to the St. Louis county auditor in the following amount 
603.9   by March 15 of each year, the amount required to be subtracted 
603.10  from the previous fiscal year's general education aid pursuant 
603.11  to section 124A.035, subdivision 5, which is in excess of the 
603.12  general education aid earned for that fiscal year.  The county 
603.13  auditor shall deposit any amounts received pursuant to this 
603.14  clause in the St. Louis county treasury for purposes of paying 
603.15  the taconite homestead credit as provided in section 273.135. 
603.16     Sec. 97.  [124D.33] [DEBT SERVICE EQUALIZATION PROGRAM.] 
603.17     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
603.18  section, the eligible debt service revenue of a district is 
603.19  defined as follows: 
603.20     (1) the amount needed to produce between five and six 
603.21  percent in excess of the amount needed to meet when due the 
603.22  principal and interest payments on the obligations of the 
603.23  district for eligible projects according to subdivision 2, 
603.24  including the amounts necessary for repayment of energy loans 
603.25  according to section 216C.37 or sections 298.292 to 298.298, 
603.26  debt service loans and capital loans, lease purchase payments 
603.27  under section 124.91, subdivisions 2 and 3, alternative 
603.28  facilities levies under section 124.239, subdivision 5, minus 
603.29     (2) the amount of debt service excess levy reduction for 
603.30  that school year calculated according to the procedure 
603.31  established by the commissioner. 
603.32     (b) The obligations in this paragraph are excluded from 
603.33  eligible debt service revenue: 
603.34     (1) obligations under section 124.2445; 
603.35     (2) the part of debt service principal and interest paid 
603.36  from the taconite environmental protection fund or northeast 
604.1   Minnesota economic protection trust; 
604.2      (3) obligations issued under Laws 1991, chapter 265, 
604.3   article 5, section 18, as amended by Laws 1992, chapter 499, 
604.4   article 5, section 24; and 
604.5      (4) obligations under section 124.2455. 
604.6      (c) For purposes of this section, if a preexisting school 
604.7   district reorganized under section 122.22, 122.23, or 122.241 to 
604.8   122.248 is solely responsible for retirement of the preexisting 
604.9   district's bonded indebtedness, capital loans or debt service 
604.10  loans, debt service equalization aid must be computed separately 
604.11  for each of the preexisting districts. 
604.12     Subd. 2.  [ELIGIBILITY.] (a) The following portions of a 
604.13  district's debt service levy qualify for debt service 
604.14  equalization: 
604.15     (1) debt service for repayment of principal and interest on 
604.16  bonds issued before July 2, 1992; 
604.17     (2) debt service for bonds refinanced after July 1, 1992, 
604.18  if the bond schedule has been approved by the commissioner and, 
604.19  if necessary, adjusted to reflect a 20-year maturity schedule; 
604.20  and 
604.21     (3) debt service for bonds issued after July 1, 1992, for 
604.22  construction projects that have received a positive review and 
604.23  comment according to section 121.15, if the commissioner has 
604.24  determined that the district has met the criteria under section 
604.25  124.431, subdivision 2, and if the bond schedule has been 
604.26  approved by the commissioner and, if necessary, adjusted to 
604.27  reflect a 20-year maturity schedule.  
604.28     (b) The criterion in section 124.431, subdivision 2, 
604.29  paragraph (a), clause (2), shall be considered to have been met 
604.30  if the district in the fiscal year in which the bonds are 
604.31  authorized at an election conducted under chapter 475: 
604.32     (i) serves an average of at least 66 pupils per grade in 
604.33  the grades to be served by the facility; or 
604.34     (ii) is eligible for elementary or secondary sparsity 
604.35  revenue. 
604.36     (c) The criterion described in section 124.431, subdivision 
605.1   2, paragraph (a), clause (9), does not apply to bonds authorized 
605.2   by elections held before July 1, 1992. 
605.3      Subd. 3.  [NOTIFICATION.] A district eligible for debt 
605.4   service equalization revenue under subdivision 2 must notify the 
605.5   commissioner of the amount of its intended debt service revenue 
605.6   calculated under subdivision 1 for all bonds sold prior to the 
605.7   notification by July 1 of the calendar year the levy is 
605.8   certified. 
605.9      Subd. 4.  [DEBT SERVICE EQUALIZATION REVENUE.] (a) For 
605.10  fiscal years 1995 and later, the debt service equalization 
605.11  revenue of a district equals the eligible debt service revenue 
605.12  minus the amount raised by a levy of ten percent times the 
605.13  adjusted net tax capacity of the district. 
605.14     (b) For fiscal year 1993, debt service equalization revenue 
605.15  equals one-third of the amount calculated in paragraph (a). 
605.16     (c) For fiscal year 1994, debt service equalization revenue 
605.17  equals two-thirds of the amount calculated in paragraph (a). 
605.18     Subd. 5.  [EQUALIZED DEBT SERVICE LEVY.] To obtain debt 
605.19  service equalization revenue, a district must levy an amount not 
605.20  to exceed the district's debt service equalization revenue times 
605.21  the lesser of one or the ratio of: 
605.22     (1) the quotient derived by dividing the adjusted net tax 
605.23  capacity of the district for the year before the year the levy 
605.24  is certified by the actual pupil units in the district for the 
605.25  school year ending in the year prior to the year the levy is 
605.26  certified; to 
605.27     (2) $4,707.50. 
605.28     Subd. 6.  [DEBT SERVICE EQUALIZATION AID.] A district's 
605.29  debt service equalization aid is the difference between the debt 
605.30  service equalization revenue and the equalized debt service levy.
605.31  If the amount of debt service equalization aid actually 
605.32  appropriated for the fiscal year in which this calculation is 
605.33  made is insufficient to fully fund debt service equalization 
605.34  aid, the commissioner shall prorate the amount of aid across all 
605.35  eligible districts. 
605.36     Subd. 7.  [DEBT SERVICE EQUALIZATION AID PAYMENT SCHEDULE.] 
606.1   Debt service equalization aid must be paid as follows:  30 
606.2   percent before September 15, 30 percent before December 15, 25 
606.3   percent before March 15, and a final payment of 15 percent by 
606.4   July 15 of the subsequent fiscal year. 
606.5      Sec. 98.  [124D.334] [DEBT SERVICE APPROPRIATION.] 
606.6      (a) $30,054,000 in fiscal year 1996, $28,162,000 in fiscal 
606.7   year 1997, and $33,948,000 in fiscal year 1998 and each year 
606.8   thereafter is appropriated from the general fund to the 
606.9   commissioner of children, families, and learning for payment of 
606.10  debt service equalization aid under section 124.95.  The 1998 
606.11  appropriation includes $4,970,000 for 1997 and $28,978,000 for 
606.12  1998. 
606.13     (b) The appropriations in paragraph (a) must be reduced by 
606.14  the amount of any money specifically appropriated for the same 
606.15  purpose in any year from any state fund. 
606.16     Sec. 99.  [124D.338] [DEBT SERVICE LEVY.] 
606.17     A district may levy the amounts necessary to make payments 
606.18  for bonds issued and for interest on them, including the bonds 
606.19  and interest on them, issued as authorized by Minnesota Statutes 
606.20  1974, section 275.125, subdivision 3, clause (7)(C); and the 
606.21  amounts necessary for repayment of debt service loans and 
606.22  capital loans, minus the amount of debt service equalization 
606.23  revenue of the district. 
606.24     Sec. 100.  [124D.34] [DEFINITIONS.] 
606.25     Subdivision 1.  [APPLICABILITY.] For the purposes of this 
606.26  chapter, the words defined in section 102.02 have the same 
606.27  meanings.  For the purpose of this chapter and chapter 124, the 
606.28  following terms have the meanings given them.  
606.29     Subd. 2.  [ADJUSTED NET TAX CAPACITY.] "Adjusted net tax 
606.30  capacity" means the net tax capacity of the taxable property of 
606.31  the district as adjusted by the commissioner of revenue under 
606.32  section 124.2131.  The adjusted net tax capacity for any given 
606.33  calendar year must be used to compute levy limitations for 
606.34  levies certified in the succeeding calendar year and aid for the 
606.35  school year beginning in the second succeeding calendar year. 
606.36     Subd. 3.  [REFERENDUM MARKET VALUE.] "Referendum market 
607.1   value" means the market value of all taxable property, except 
607.2   that any class of property, or any portion of a class of 
607.3   property, with a class rate of less than one percent under 
607.4   section 273.13 must have a referendum market value equal to its 
607.5   net tax capacity multiplied by 100. 
607.6      Subd. 4.  [EQUALIZING FACTOR.] "Equalizing factor" means 
607.7   the ratio, rounded to the nearest dollar, of the formula 
607.8   allowance to the general education tax rate for the 
607.9   corresponding year.  
607.10     Subd. 5.  [LEVY USE.] A levy "for use in a particular 
607.11  school year," "attributable to a particular school year," or 
607.12  "recognized as revenue in a particular school year," means the 
607.13  levy certified in the calendar year ending in the school year 
607.14  preceding that particular school year, and payable in the 
607.15  calendar year in which that school year begins. 
607.16     Subd. 6.  [PUPIL UNITS, ACTUAL.] "Actual pupil units" means 
607.17  pupil units identified in section 124.17, subdivision 1.  
607.18     Subd. 7.  [PUPIL UNITS, AFDC.] "AFDC pupil units" for 
607.19  fiscal year 1993 and thereafter means pupil units identified in 
607.20  section 124.17, subdivision 1d.  
607.21     Subd. 8.  [SHARED TIME AVERAGE DAILY MEMBERSHIP.] The 
607.22  average daily membership of a pupil enrolled on a shared time 
607.23  basis equals the ratio of the total minutes for which the pupil 
607.24  is enrolled and the minimum minutes required during the year for 
607.25  a regularly enrolled public school pupil.  
607.26     Subd. 9.  [SHARED TIME AID.] Aid for shared time pupils 
607.27  must equal the formula allowance times the full-time equivalent 
607.28  actual pupil units for shared time pupils.  Aid for shared time 
607.29  pupils is in addition to any other aid to which the district is 
607.30  otherwise entitled.  Shared time average daily membership may 
607.31  not be used in the computation of pupil units under section 
607.32  124.17, subdivision 1, for any purpose other than the 
607.33  computation of shared time aid pursuant to subdivisions 20 to 22 
607.34  and section 124A.034, subdivisions 1 to 1b. 
607.35     Subd. 10.  [SHARED TIME PUPILS.] "Shared time pupils" means 
607.36  those pupils who attend public school programs for part of the 
608.1   regular school day and who otherwise fulfill the requirements of 
608.2   section 120.101 by attendance at a nonpublic school.  
608.3      Subd. 11.  [TRAINING AND EXPERIENCE INDEX.] "Training and 
608.4   experience index" means a measure of a district's teacher 
608.5   training and experience relative to the education and experience 
608.6   of teachers in the state.  The measure must be determined 
608.7   pursuant to section 124A.04. 
608.8      Subd. 12.  [AVERAGE SALARY FOR BEGINNING TEACHERS.] 
608.9   "Average salary for beginning teachers" means the average salary 
608.10  for all teachers in the state who are in their first year of 
608.11  teaching and who have no additional credits or degrees above a 
608.12  bachelor's degree.  At least biennially, the department must 
608.13  recompute this average using complete new data. 
608.14     Subd. 13.  [NET UNAPPROPRIATED OPERATING FUND BALANCE.] 
608.15  "Net unappropriated operating fund balance" means the sum of the 
608.16  fund balances in the general, food service, and community 
608.17  service funds minus the balances reserved for statutory 
608.18  operating debt reduction, bus purchase, severance pay, taconite, 
608.19  reemployment insurance, maintenance levy reduction, operating 
608.20  capital, disabled access, health and safety, and encumbrances, 
608.21  computed as of June 30 each year. 
608.22     Sec. 101.  [124D.344] [REFERENDUM AND DESEGREGATION REVENUE 
608.23  CONVERSION.] 
608.24     Subdivision 1.  [REVENUE CONVERSION.] Except as provided 
608.25  under subdivision 4, the referendum authority under section 
608.26  124A.03 and the levy authority under section 124.912, 
608.27  subdivisions 2 and 3, of a district must be converted by the 
608.28  department according to this section. 
608.29     Subd. 2.  [ADJUSTMENT RATIO.] For assessment years 1991, 
608.30  1992, and 1993, the commissioner of revenue must determine for 
608.31  each district a ratio equal to: 
608.32     (1) the net tax capacity for taxable property in the 
608.33  district determined by applying the property tax class rates for 
608.34  assessment year 1990 to the market values of taxable property 
608.35  for each assessment year, divided by 
608.36     (2) the net tax capacity of the district for the assessment 
609.1   year. 
609.2      Subd. 3.  [RATE ADJUSTMENT.] The department must adjust a 
609.3   district's referendum authority for a referendum approved before 
609.4   July 1, 1991, excluding authority based on a dollar amount, and 
609.5   the levy authority under section 124.912, subdivisions 2 and 3, 
609.6   by multiplying the sum of the rates authorized by a district 
609.7   under section 124A.03 and the rates in section 124.912, 
609.8   subdivisions 2 and 3, by the ratio determined under subdivision 
609.9   2 for the assessment year for which the revenue is 
609.10  attributable.  The adjusted rates for assessment year 1993 apply 
609.11  to later years for which the revenue is authorized. 
609.12     Subd. 4.  [PER PUPIL REVENUE CONVERSION.] (a) The 
609.13  department must convert each district's referendum revenue 
609.14  authority for fiscal year 2002 and later years to an allowance 
609.15  per pupil unit as follows:  the revenue allowance equals the 
609.16  amount determined by dividing the district's maximum revenue 
609.17  under section 124A.03, for fiscal year 2001 by the district's 
609.18  2000-2001 actual pupil units.  A district's maximum revenue for 
609.19  all later years for which the revenue is authorized equals the 
609.20  revenue allowance times the district's actual pupil units for 
609.21  that year.  
609.22     (b) The referendum allowance reduction must be applied 
609.23  first to the authority with the earliest expiration date. 
609.24     Sec. 102.  [124D.348] [REFERENDUM REVENUE.] 
609.25     Subdivision 1.  [REFERENDUM ALLOWANCE.] A district's 
609.26  referendum revenue allowance equals the referendum revenue 
609.27  authority for that year divided by its actual pupil units for 
609.28  that school year. 
609.29     Subd. 2.  [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 
609.30  subdivision 1b, a district's referendum allowance must not 
609.31  exceed the greater of:  
609.32     (1) the district's referendum allowance for fiscal year 
609.33  1994; or 
609.34     (2) 25 percent of the formula allowance minus $300 for 
609.35  fiscal year 1997 and later. 
609.36     Subd. 3.  [SPARSITY EXCEPTION.] A district that qualifies 
610.1   for sparsity revenue under section 124A.22 is not subject to a 
610.2   referendum allowance limit. 
610.3      Subd. 4.  [TOTAL REFERENDUM REVENUE.] The total referendum 
610.4   revenue for each district equals the district's referendum 
610.5   allowance times the actual pupil units for the school year. 
610.6      Subd. 5.  [REFERENDUM EQUALIZATION REVENUE.] A district's 
610.7   referendum equalization revenue equals $315 times the district's 
610.8   actual pupil units for that year. 
610.9      Referendum equalization revenue must not exceed a 
610.10  district's total referendum revenue for that year. 
610.11     Subd. 6.  [REFERENDUM EQUALIZATION LEVY.] (a) For fiscal 
610.12  year 1996, a district's referendum equalization levy equals the 
610.13  district's referendum equalization revenue times the lesser of 
610.14  one or the ratio of the district's adjusted net tax capacity per 
610.15  actual pupil unit to 100 percent of the equalizing factor as 
610.16  defined in section 124A.02, subdivision 8. 
610.17     (b) For fiscal year 1997 and thereafter, a district's 
610.18  referendum equalization levy for a referendum levied against the 
610.19  referendum market value of all taxable property as defined in 
610.20  section 124A.02, subdivision 3b, equals the district's 
610.21  referendum equalization revenue times the lesser of one or the 
610.22  ratio of the district's referendum market value per actual pupil 
610.23  unit to $476,000. 
610.24     (c) For fiscal year 1997 and thereafter, a district's 
610.25  referendum equalization levy for a referendum levied against the 
610.26  net tax capacity of all taxable property equals the district's 
610.27  referendum equalization revenue times the lesser of one or the 
610.28  ratio of the district's adjusted net tax capacity per actual 
610.29  pupil unit to 100 percent of the equalizing factor for that year.
610.30     Subd. 7.  [REFERENDUM EQUALIZATION AID.] (a) A district's 
610.31  referendum equalization aid equals the difference between its 
610.32  referendum equalization revenue and levy. 
610.33     (b) If a district's actual levy for referendum equalization 
610.34  revenue is less than its maximum levy limit, aid must be 
610.35  proportionately reduced. 
610.36     Subd. 8.  [UNEQUALIZED REFERENDUM LEVY.] Each year, a 
611.1   district may levy an amount equal to the difference between its 
611.2   total referendum revenue according to subdivision 1f and its 
611.3   equalized referendum aid and levy according to subdivisions 1g 
611.4   and 1h. 
611.5      Subd. 9.  [REFERENDUM REVENUE.] (a) The revenue authorized 
611.6   by section 124A.22, subdivision 1, may be increased in the 
611.7   amount approved by the voters of the district at a referendum 
611.8   called for the purpose.  The referendum may be called by the 
611.9   board or may be called by the board upon written petition of 
611.10  qualified voters of the district.  The referendum must be 
611.11  conducted one or two calendar years before the increased levy 
611.12  authority, if approved, first becomes payable. Only one election 
611.13  to approve an increase may be held in a calendar year.  Unless 
611.14  the referendum is conducted by mail under paragraph (g), the 
611.15  referendum must be held on the first Tuesday after the first 
611.16  Monday in November.  The ballot must state the maximum amount of 
611.17  the increased revenue per actual pupil unit, the estimated 
611.18  referendum tax rate as a percentage of market value in the first 
611.19  year it is to be levied, and that the revenue must be used to 
611.20  finance school operations.  The ballot may state a schedule, 
611.21  determined by the board, of increased revenue per actual pupil 
611.22  units that differs from year to year over the number of years 
611.23  for which the increased revenue is authorized.  If the ballot 
611.24  contains a schedule showing different amounts, it must also 
611.25  indicate the estimated referendum tax rate as a percent of 
611.26  market value for the amount specified for the first year and for 
611.27  the maximum amount specified in the schedule.  The ballot may 
611.28  state that existing referendum levy authority is expiring.  In 
611.29  this case, the ballot may also compare the proposed levy 
611.30  authority to the existing expiring levy authority, and express 
611.31  the proposed increase as the amount, if any, over the expiring 
611.32  referendum levy authority.  The ballot must designate the 
611.33  specific number of years, not to exceed ten, for which the 
611.34  referendum authorization applies.  The notice required under 
611.35  section 275.60 may be modified to read, in cases of renewing 
611.36  existing levies: 
612.1      "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
612.2      FOR A PROPERTY TAX INCREASE." 
612.3      The ballot may contain a textual portion with the 
612.4   information required in this subdivision and a question stating 
612.5   substantially the following:  
612.6      "Should the increase in the revenue proposed by (petition 
612.7   to) the board of ........., School District No. .., be approved?"
612.8      If approved, an amount equal to the approved revenue per 
612.9   actual pupil unit times the actual pupil units for the school 
612.10  year beginning in the year after the levy is certified must be 
612.11  authorized for certification for the number of years approved, 
612.12  if applicable, or until revoked or reduced by the voters of the 
612.13  district at a subsequent referendum. 
612.14     (b) The board must prepare and deliver by first class mail 
612.15  at least 15 days but no more than 30 days before the day of the 
612.16  referendum to each taxpayer a notice of the referendum and the 
612.17  proposed revenue increase.  The board need not mail more than 
612.18  one notice to any taxpayer.  For the purpose of giving mailed 
612.19  notice under this subdivision, owners must be those shown to be 
612.20  owners on the records of the county auditor or, in any county 
612.21  where tax statements are mailed by the county treasurer, on the 
612.22  records of the county treasurer.  Every property owner whose 
612.23  name does not appear on the records of the county auditor or the 
612.24  county treasurer is deemed to have waived this mailed notice 
612.25  unless the owner has requested in writing that the county 
612.26  auditor or county treasurer, as the case may be, include the 
612.27  name on the records for this purpose.  The notice must project 
612.28  the anticipated amount of tax increase in annual dollars and 
612.29  annual percentage for typical residential homesteads, 
612.30  agricultural homesteads, apartments, and commercial-industrial 
612.31  property within the school district. 
612.32     The notice for a referendum may state that an existing 
612.33  referendum levy is expiring and project the anticipated amount 
612.34  of increase over the existing referendum levy in the first year, 
612.35  if any, in annual dollars and annual percentage for typical 
612.36  residential homesteads, agricultural homesteads, apartments, and 
613.1   commercial-industrial property within the district. 
613.2      The notice must include the following statement:  "Passage 
613.3   of this referendum will result in an increase in your property 
613.4   taxes."  However, in cases of renewing existing levies, the 
613.5   notice may include the following statement:  "Passage of this 
613.6   referendum may result in an increase in your property taxes." 
613.7      (c) A referendum on the question of revoking or reducing 
613.8   the increased revenue amount authorized pursuant to paragraph 
613.9   (a) may be called by the board and must be called by the board 
613.10  upon the written petition of qualified voters of the district.  
613.11  A referendum to revoke or reduce the levy amount must be based 
613.12  upon the dollar amount, local tax rate, or amount per actual 
613.13  pupil unit, that was stated to be the basis for the initial 
613.14  authorization.  Revenue approved by the voters of the district 
613.15  pursuant to paragraph (a) must be received at least once before 
613.16  it is subject to a referendum on its revocation or reduction for 
613.17  subsequent years.  Only one revocation or reduction referendum 
613.18  may be held to revoke or reduce referendum revenue for any 
613.19  specific year and for years thereafter. 
613.20     (d) A petition authorized by paragraph (a) or (c) is 
613.21  effective if signed by a number of qualified voters in excess of 
613.22  15 percent of the registered voters of the district on the day 
613.23  the petition is filed with the board.  A referendum invoked by 
613.24  petition must be held on the date specified in paragraph (a). 
613.25     (e) The approval of 50 percent plus one of those voting on 
613.26  the question is required to pass a referendum authorized by this 
613.27  subdivision. 
613.28     (f) At least 15 days before the day of the referendum, the 
613.29  district must submit a copy of the notice required under 
613.30  paragraph (b) to the commissioner and to the county auditor of 
613.31  each county in which the district is located.  Within 15 days 
613.32  after the results of the referendum have been certified by the 
613.33  board, or in the case of a recount, the certification of the 
613.34  results of the recount by the canvassing board, the district 
613.35  must notify the commissioner of the results of the referendum. 
613.36     (g) Except for a referendum held under subdivision 2b, any 
614.1   referendum under this section held on a day other than the first 
614.2   Tuesday after the first Monday in November must be conducted by 
614.3   mail in accordance with section 204B.46.  Notwithstanding 
614.4   paragraph (b) to the contrary, in the case of a referendum 
614.5   conducted by mail under this paragraph, the notice required by 
614.6   paragraph (b) must be prepared and delivered by first class mail 
614.7   at least 20 days before the referendum. 
614.8      Subd. 10.  [SCHOOL REFERENDUM LEVY; MARKET VALUE.] 
614.9   Notwithstanding the provisions of subdivision 2, a school 
614.10  referendum levy approved after November 1, 1992, for taxes 
614.11  payable in 1993 and thereafter, must be levied against the 
614.12  referendum market value of all taxable property as defined in 
614.13  section 124A.02, subdivision 3b.  Any referendum levy amount 
614.14  subject to the requirements of this subdivision must be 
614.15  certified separately to the county auditor under section 275.07. 
614.16     All other provisions of subdivision 2 that do not conflict 
614.17  with this subdivision apply to referendum levies under this 
614.18  subdivision.  
614.19     Subd. 11.  [REFERENDUM DATE.] In addition to the referenda 
614.20  allowed in subdivision 2, clause (a), the commissioner may 
614.21  authorize a referendum for a different day.  
614.22     (a) The commissioner may grant authority to a district to 
614.23  hold a referendum on a different day if the district is in 
614.24  statutory operating debt and has an approved plan or has 
614.25  received an extension from the department to file a plan to 
614.26  eliminate the statutory operating debt.  
614.27     (b) The commissioner may grant authority for a district to 
614.28  hold a referendum on a different day if:  (1) the district will 
614.29  conduct a bond election under chapter 475 on that same day; and 
614.30  (2) the proceeds of the referendum will provide only additional 
614.31  operating revenue necessitated by the facility for which bonding 
614.32  authority is sought.  The commissioner may only grant authority 
614.33  under this paragraph if the district demonstrates to the 
614.34  commissioner's satisfaction that the district's ability to 
614.35  operate the new facility will be significantly affected if the 
614.36  operating referendum is not conducted until the November general 
615.1   election.  Authority under this paragraph expires November 30, 
615.2   1998. 
615.3      (c) The commissioner must approve, deny, or modify each 
615.4   district's request for a referendum levy on a different day 
615.5   within 60 days of receiving the request from a district. 
615.6      Subd. 12.  [FISCAL YEAR 1997 REFERENDUM ALLOWANCE 
615.7   REDUCTION.] For fiscal year 1997, a district's referendum 
615.8   allowance under subdivision 1c is reduced by the amounts 
615.9   calculated in paragraphs (a), (b), (c), and (d). 
615.10     (a) The referendum allowance reduction equals the amount by 
615.11  which a district's supplemental revenue reduction exceeds the 
615.12  district's supplemental revenue allowance for fiscal year 1993. 
615.13     (b) Notwithstanding paragraph (a), if a district's initial 
615.14  referendum allowance is less than ten percent of the formula 
615.15  allowance for that year, the reduction equals the lesser of (1) 
615.16  an amount equal to $100, or (2) the amount calculated in 
615.17  paragraph (a). 
615.18     (c) Notwithstanding paragraph (a) or (b), a district's 
615.19  referendum allowance reduction equals (1) an amount equal to 
615.20  $100, times (2) one minus the ratio of 20 percent of the formula 
615.21  allowance minus the district's initial referendum allowance 
615.22  limit to 20 percent of the formula allowance for that year if: 
615.23     (i) the district's adjusted net tax capacity for assessment 
615.24  year 1992 per actual pupil unit for fiscal year 1995 is less 
615.25  than $3,000; 
615.26     (ii) the district's net unappropriated operating fund 
615.27  balance as of June 30, 1993, divided by the actual pupil units 
615.28  for fiscal year 1995 is less than $200; 
615.29     (iii) the district's supplemental revenue allowance for 
615.30  fiscal year 1993 is equal to zero; and 
615.31     (iv) the district's initial referendum revenue authority 
615.32  for the current year divided by the district's net tax capacity 
615.33  for assessment year 1992 is greater than ten percent. 
615.34     (d) Notwithstanding paragraph (a), (b), or (c), the 
615.35  referendum revenue reduction for a newly reorganized district is 
615.36  computed as follows: 
616.1      (1) for a newly reorganized district created effective July 
616.2   1, 1994, the referendum revenue reduction equals the lesser of 
616.3   the amount calculated for the combined district under paragraph 
616.4   (a), (b), or (c), or the sum of the amounts by which each of the 
616.5   reorganizing district's supplemental revenue reduction exceeds 
616.6   its respective supplemental revenue allowances calculated for 
616.7   the districts as if they were still in existence for fiscal year 
616.8   1995; or 
616.9      (2) for a newly reorganized district created after July 1, 
616.10  1994, the referendum revenue reduction equals the lesser of the 
616.11  amount calculated for the combined district under paragraph (a), 
616.12  (b), or (c), or the sum of the amounts by which each of the 
616.13  reorganizing district's supplemental revenue reduction exceeds 
616.14  its respective supplemental revenue allowances calculated for 
616.15  the year preceding the year of reorganization. 
616.16     Subd. 13.  [REFERENDUM ALLOWANCE REDUCTION.] For fiscal 
616.17  year 1998 and later, a district's referendum allowance for 
616.18  referendum authority under subdivision 1c is reduced as provided 
616.19  in this subdivision.  
616.20     (a) For referendum revenue authority approved before June 
616.21  1, 1996, and effective for fiscal year 1997, the reduction 
616.22  equals the amount of the reduction computed for fiscal year 1997 
616.23  under subdivision 3b.  
616.24     (b) For referendum revenue authority approved before June 
616.25  1, 1996, and effective beginning in fiscal year 1998, the 
616.26  reduction equals the amount of the reduction computed for fiscal 
616.27  year 1998 under subdivision 3b.  
616.28     (c) For referendum revenue authority approved after May 31, 
616.29  1996, there is no reduction.  
616.30     (d) For districts with more than one referendum authority, 
616.31  the reduction must be computed separately for each authority.  
616.32  The reduction must be applied first to authorities levied 
616.33  against tax capacity, and then to authorities levied against 
616.34  referendum market value.  For districts with more than one 
616.35  authority levied against net tax capacity or against referendum 
616.36  market value, the referendum allowance reduction must be applied 
617.1   first to the authority with the earliest expiration date. 
617.2      (e) For a newly reorganized district created after July 1, 
617.3   1996, the referendum revenue reduction equals the lesser of the 
617.4   amount calculated for the combined district, or the sum of the 
617.5   amounts by which each of the reorganizing district's 
617.6   supplemental revenue reduction exceeds its respective 
617.7   supplemental revenue allowances calculated for the year 
617.8   preceding the year of reorganization. 
617.9      Sec. 103.  [124D.35] [REFERENDUM AUTHORITY.] 
617.10     Subdivision 1.  [EXPIRATION.] Unless scheduled to expire 
617.11  sooner, a referendum levy authorized under section 124A.03 
617.12  expires July 1, 2000.  This subdivision does not apply to a 
617.13  referendum levy that is authorized for ten or fewer years and 
617.14  that is levied against the referendum market value of all 
617.15  taxable property located within the school district. 
617.16     Subd. 2.  [CONVERSION TO MARKET VALUE.] (a) Before June 1, 
617.17  1997, by June 1 of each year, a board may, by resolution of a 
617.18  majority of its board, convert any remaining portion of its 
617.19  referendum authority under section 124A.03, subdivision 2, that 
617.20  is authorized to be levied against net tax capacity to 
617.21  referendum authority that is authorized to be levied against the 
617.22  referendum market value of all taxable property located within 
617.23  the district.  At the option of the board, any remaining portion 
617.24  of its referendum authority may be converted in two or more 
617.25  parts at separate times.  The referendum authority may be 
617.26  converted from net tax capacity to referendum market value 
617.27  according to a schedule adopted by resolution of the board for 
617.28  years before taxes payable in 2001, provided that, for taxes 
617.29  payable in 2001 and later, the full amount of the referendum 
617.30  authority is levied against referendum market value.  The board 
617.31  must notify the commissioner of the amount of referendum 
617.32  authority that has been converted from net tax capacity to 
617.33  referendum market value, if any, by June 15, of each year.  The 
617.34  maximum length of a referendum converted under this paragraph is 
617.35  ten years. 
617.36     (b) For referendum levy amounts converted between June 1, 
618.1   1997, and June 1, 1998, all other conditions of this subdivision 
618.2   apply except that the maximum length of the referendum is 
618.3   limited to seven years. 
618.4      (c) For referendum levy amounts converted between June 1, 
618.5   1998, and June 1, 1999, all other conditions of this subdivision 
618.6   apply except that the maximum length of the referendum is 
618.7   limited to six years. 
618.8      (d) For referendum levy amounts converted between June 1, 
618.9   1999, and June 1, 2000, all other conditions of this subdivision 
618.10  apply except that the maximum length of the referendum is 
618.11  limited to five years. 
618.12     Subd. 3.  [ALTERNATIVE CONVERSION.] A district that has a 
618.13  referendum levied against net tax capacity that expires before 
618.14  taxes payable in 1998 may convert its referendum authority 
618.15  according to this subdivision.  In the payable year before the 
618.16  year of expiration, the board may authorize a referendum under 
618.17  section 124A.03.  Notwithstanding any other law to the contrary, 
618.18  the district may propose, and if approved by its electors, have 
618.19  its referendum authority reauthorized in part on tax capacity 
618.20  and in part on referendum market value according to a schedule 
618.21  adopted by resolution of the board for years before taxes 
618.22  payable in 2001, provided that, for taxes payable in 2001 and 
618.23  later, the full amount of referendum authority is levied against 
618.24  referendum market value.  If the full amount of the referendum 
618.25  is reauthorized on referendum market value prior to taxes 
618.26  payable in 1998, the referendum may extend for ten years.  If 
618.27  the referendum becomes fully reauthorized on referendum market 
618.28  value for a later year, the referendum must not extend for more 
618.29  than the maximum number of years allowed under subdivision 2. 
618.30     Subd. 4.  [REFERENDUM.] The board must prepare and publish 
618.31  in the official legal newspaper of the district a notice of the 
618.32  public meeting on the district's intent to convert any portion 
618.33  of its referendum levy to market value not less than 30 days 
618.34  before the scheduled date of the meeting.  The resolution 
618.35  converting a portion of the district's referendum levy to 
618.36  referendum market value becomes final unless within 30 days 
619.1   after the meeting where the resolution was adopted a petition 
619.2   requesting an election signed by a number of qualified voters in 
619.3   excess of 15 percent of the registered voters of the district on 
619.4   the day the petition is filed with the board.  If a petition is 
619.5   filed, then the board resolution has no effect and the amount of 
619.6   referendum revenue authority specified in the resolution cancels 
619.7   for taxes payable in the following year and thereafter.  The 
619.8   board must schedule a referendum under section 124A.03, 
619.9   subdivision 2. 
619.10     Sec. 104.  [124D.354] [ANNUAL FOUNDATION OR GENERAL 
619.11  EDUCATION AID APPROPRIATION.] 
619.12     There is annually appropriated from the general fund to the 
619.13  department the amount necessary for general education aid.  This 
619.14  amount must be reduced by the amount of any money specifically 
619.15  appropriated for the same purpose in any year from any state 
619.16  fund.  
619.17     Sec. 105.  [124D.358] [SHARED TIME AID.] 
619.18     Subdivision 1.  [TO RESIDENT DISTRICT.] Aid for shared time 
619.19  pupils must be paid to the district of the pupil's residence.  
619.20  If a pupil attends shared time classes in another district, the 
619.21  resident district must pay to the district of attendance an 
619.22  amount of tuition equal to the ratio in section 124A.02, 
619.23  subdivision 20, times the amount of tuition that would be 
619.24  charged and paid for a nonresident public school pupil in a 
619.25  similar circumstance.  The district of residence is not 
619.26  obligated for tuition except by previous agreement. 
619.27     Subd. 2.  [EXCEPTION.] Notwithstanding subdivision 1, the 
619.28  resident district of a shared time pupil attending shared time 
619.29  classes in another district may grant the district of 
619.30  attendance, upon its request, permission to claim the pupil as a 
619.31  resident for state aid purposes.  In this case, state aid must 
619.32  be paid to the district of attendance and, upon agreement, the 
619.33  district of attendance may bill the resident district for any 
619.34  unreimbursed education costs, but not for unreimbursed 
619.35  transportation costs.  The agreement may, however, provide for 
619.36  the resident district to pay the cost of any of the particular 
620.1   transportation categories specified in section 124.225, 
620.2   subdivision 1, and in this case, aid for those categories must 
620.3   be paid to the district of residence rather than to the district 
620.4   of attendance.  
620.5      Subd. 3.  [SECTION 123.935 SERVICES.] Minutes of enrollment 
620.6   in a public school during which a nonpublic school pupil 
620.7   receives services pursuant to section 123.935 must not be used 
620.8   in the computation of shared time aid. 
620.9      Subd. 4.  [LOCATION OF SERVICES.] Public school programs 
620.10  may be provided to shared time pupils only at a public school 
620.11  building.  Special instruction and services for children with a 
620.12  disability required pursuant to section 120.17 may also be 
620.13  provided at a neutral site as defined in section 123.932, and 
620.14  diagnostic and health services required pursuant to section 
620.15  120.17 may also be provided at a nonpublic school building.  As 
620.16  used in this subdivision, "diagnostic services" means speech, 
620.17  hearing, vision, psychological, medical and dental diagnostic 
620.18  services and "health services" means physician, nursing or 
620.19  optometric services provided to pupils in the field of physical 
620.20  and mental health.  
620.21     Sec. 106.  [124D.36] [DEDUCTIONS FROM GENERAL EDUCATION 
620.22  AID.] 
620.23     Subdivision 1.  [PERMANENT SCHOOL FUND.] The amount of 
620.24  money received by a district as income from the permanent school 
620.25  fund for any year must be deducted from the general education 
620.26  aid earned by the district for the same year or from aid earned 
620.27  from other state sources.  
620.28     Subd. 2.  [MINIMUM.] The amount payable to any district 
620.29  from state sources for any one year may not be reduced below the 
620.30  amount payable as apportionment of the school endowment fund 
620.31  pursuant to sections 124.08 to 124.10.  
620.32     Subd. 3.  [COUNTY APPORTIONMENT DEDUCTION.] Each year the 
620.33  amount of money apportioned to a district for that year pursuant 
620.34  to section 124.10, subdivision 2, excluding any district where 
620.35  the general education levy is determined according to section 
620.36  124A.23, subdivision 3, must be deducted from the general 
621.1   education aid earned by that district for the same year or from 
621.2   aid earned from other state sources.  
621.3      Subd. 4.  [TACONITE DEDUCTIONS.] (1) Notwithstanding any 
621.4   provisions of any other law to the contrary, the adjusted net 
621.5   tax capacity used in calculating general education aid may 
621.6   include only property that is currently taxable in the district. 
621.7      (2) For districts that received payments under sections 
621.8   298.018; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 
621.9   and 298.405; any law imposing a tax upon severed mineral values, 
621.10  or recognized revenue pursuant to section 477A.15; the general 
621.11  education aid must be reduced in the final adjustment payment by 
621.12  the difference between the dollar amount of the payments 
621.13  received pursuant to those sections, or revenue recognized 
621.14  pursuant to section 477A.15 in the fiscal year to which the 
621.15  final adjustment is attributable and the amount that was 
621.16  calculated, pursuant to section 124.918, subdivision 8, as a 
621.17  reduction of the levy attributable to the fiscal year to which 
621.18  the final adjustment is attributable.  If the final adjustment 
621.19  of a district's general education aid for a fiscal year is a 
621.20  negative amount because of this clause, the next fiscal year's 
621.21  general education aid to that district must be reduced by this 
621.22  negative amount in the following manner:  there must be withheld 
621.23  from each scheduled general education aid payment due the 
621.24  district in such fiscal year, 15 percent of the total negative 
621.25  amount, until the total negative amount has been withheld.  The 
621.26  amount reduced from general education aid pursuant to this 
621.27  clause must be recognized as revenue in the fiscal year to which 
621.28  the final adjustment payment is attributable.  
621.29     Sec. 107.  [124D.364] [PAYMENTS TO RESIDENT AND NONRESIDENT 
621.30  DISTRICTS.] 
621.31     Subdivision 1.  [AID TO DISTRICT OF RESIDENCE.] General 
621.32  education aid must be paid to the district of residence unless 
621.33  otherwise specifically provided by law.  
621.34     Subd. 2.  [REPORTING; REVENUE FOR HOMELESS.] For all school 
621.35  purposes, unless otherwise specifically provided by law, a 
621.36  homeless pupil must be considered a resident of the school 
622.1   district that enrolls the pupil. 
622.2      Subd. 3.  [DISTRICT WITHOUT SCHOOLS.] Except as otherwise 
622.3   provided in law, any district not maintaining classified 
622.4   elementary or secondary schools must pay the tuition required in 
622.5   order to enable resident pupils to attend school in another 
622.6   district when necessary, and must receive general education aid 
622.7   on the same basis as other districts.  The aid must be computed 
622.8   as if the pupils were enrolled in the district of residence.  
622.9      Subd. 4.  [NOTIFICATION OF RESIDENT DISTRICT.] A district 
622.10  educating a pupil who is a resident of another district must 
622.11  notify the district of residence within 60 days of the date the 
622.12  pupil is determined by the district to be a nonresident, but not 
622.13  later than August 1 following the end of the school year in 
622.14  which the pupil is educated.  If the district of residence does 
622.15  not receive a notification from the providing district pursuant 
622.16  to this subdivision, it is not liable to that district for any 
622.17  tuition billing received after August 1 of the next school year. 
622.18     Subd. 5.  [STATE AGENCY AND COURT PLACEMENTS.] If a state 
622.19  agency or a court of the state desires to place a child in a 
622.20  district that is not the child's district of residence, that 
622.21  agency or court must, before placement, allow the district of 
622.22  residence an opportunity to participate in the placement 
622.23  decision and notify the district of residence, the district of 
622.24  attendance and the commissioner of the placement decision.  When 
622.25  a state agency or court determines that an immediate emergency 
622.26  placement is necessary and that time does not permit district 
622.27  participation in the placement decision or notice to the 
622.28  districts and the commissioner of the placement decision before 
622.29  the placement, the agency or court may make the decision and 
622.30  placement without that participation or prior notice.  The 
622.31  agency or court must notify the district of residence, the 
622.32  district of attendance and the commissioner of an emergency 
622.33  placement within 15 days of the placement.  
622.34     Subd. 6.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
622.35  education aid for districts must be adjusted for each pupil 
622.36  attending a nonresident district under sections 120.062, 
623.1   120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22.  
623.2   The adjustments must be made according to this subdivision. 
623.3      (a) General education aid paid to a resident district must 
623.4   be reduced by an amount equal to the general education revenue 
623.5   exclusive of compensatory revenue attributable to the pupil in 
623.6   the resident district. 
623.7      (b) General education aid paid to a district serving a 
623.8   pupil in programs listed in this subdivision must be increased 
623.9   by an amount equal to the general education revenue exclusive of 
623.10  compensatory revenue attributable to the pupil in the 
623.11  nonresident district.  
623.12     (c) If the amount of the reduction to be made from the 
623.13  general education aid of the resident district is greater than 
623.14  the amount of general education aid otherwise due the district, 
623.15  the excess reduction must be made from other state aids due the 
623.16  district. 
623.17     (d) The district of residence must pay tuition to a 
623.18  district or an area learning center, operated according to 
623.19  paragraph (e), providing special instruction and services to a 
623.20  pupil with a disability, as defined in section 120.03, or a 
623.21  pupil, as defined in section 120.181, who is enrolled in a 
623.22  program listed in this subdivision.  The tuition must be equal 
623.23  to (1) the actual cost of providing special instruction and 
623.24  services to the pupil, including a proportionate amount for debt 
623.25  service and for capital expenditure facilities and equipment, 
623.26  and debt service but not including any amount for 
623.27  transportation, minus (2) the amount of general education aid, 
623.28  the amount of capital expenditure facilities aid and capital 
623.29  expenditure equipment aid received under section 124.245, 
623.30  subdivision 6, and special education aid, attributable to that 
623.31  pupil, that is received by the district providing special 
623.32  instruction and services. 
623.33     (e) An area learning center operated by a service 
623.34  cooperative, intermediate district, education district, or a 
623.35  joint powers cooperative may elect through the action of the 
623.36  constituent boards to charge tuition for pupils rather than to 
624.1   calculate general education aid adjustments under paragraph (a), 
624.2   (b), or (c).  The tuition must be equal to the greater of the 
624.3   average general education revenue per pupil unit attributable to 
624.4   the pupil, or the actual cost of providing the instruction, 
624.5   excluding transportation costs, if the pupil meets the 
624.6   requirements of section 120.03 or 120.181. 
624.7      Subd. 7.  [CHARTER SCHOOLS.] (a) The general education aid 
624.8   for districts must be adjusted for each pupil attending a 
624.9   charter school under section 120.064.  The adjustments must be 
624.10  made according to this subdivision. 
624.11     (b) General education aid paid to a resident district must 
624.12  be reduced by an amount equal to the general education revenue 
624.13  exclusive of compensatory revenue. 
624.14     (c) General education aid paid to a district in which a 
624.15  charter school not providing transportation according to section 
624.16  120.064, subdivision 15, is located must be increased by an 
624.17  amount equal to the product of:  (1) the sum of $170, plus the 
624.18  transportation sparsity allowance for the district, plus the 
624.19  transportation transition allowance for the district; times (2) 
624.20  the pupil units attributable to the pupil.  
624.21     (d) If the amount of the reduction to be made from the 
624.22  general education aid of the resident district is greater than 
624.23  the amount of general education aid otherwise due the district, 
624.24  the excess reduction must be made from other state aids due the 
624.25  district. 
624.26     Sec. 108.  [124D.368] [TRAINING AND EXPERIENCE INDEX.] 
624.27     The training and experience index must be constructed in 
624.28  the following manner:  
624.29     (a) The department must construct a matrix that classifies 
624.30  teachers by the extent of training received in accredited 
624.31  institutions of higher education and by the years of experience 
624.32  that districts take into account in determining teacher salaries.
624.33     (b) The average salary for each cell of the matrix must be 
624.34  computed as follows using data from the second year of the 
624.35  previous biennium:  
624.36     (1) For each district, multiply the salary paid to 
625.1   full-time equivalent teachers with that combination of training 
625.2   and experience according to the district's teacher salary 
625.3   schedule by the number of actual pupil units in that district.  
625.4      (2) Add the amounts computed in clause (1) for all 
625.5   districts in the state and divide the resulting sum by the total 
625.6   number of actual pupil units in all districts in the state that 
625.7   employ teachers.  
625.8      (c) For each cell in the matrix, compute the ratio of the 
625.9   average salary in that cell to the average salary for all 
625.10  teachers in the state.  
625.11     (d) The index for each district that employs teachers 
625.12  equals the sum of the ratios for each teacher in that district 
625.13  divided by the number of teachers in that district.  The index 
625.14  for a district that employs no teachers is zero. 
625.15     Sec. 109.  [124D.37] [GENERAL EDUCATION REVENUE.] 
625.16     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) For fiscal 
625.17  year 1996, the general education revenue for each district 
625.18  equals the sum of the district's basic revenue, compensatory 
625.19  education revenue, training and experience revenue, secondary 
625.20  sparsity revenue, elementary sparsity revenue, and supplemental 
625.21  revenue. 
625.22     (b) For fiscal year 1997 and thereafter, the general 
625.23  education revenue for each district equals the sum of the 
625.24  district's basic revenue, compensatory education revenue, 
625.25  secondary sparsity revenue, elementary sparsity revenue, 
625.26  transportation sparsity, total operating capital revenue, 
625.27  transition revenue, and supplemental revenue. 
625.28     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
625.29  district equals the formula allowance times the actual pupil 
625.30  units for the school year.  The formula allowance for fiscal 
625.31  year 1997 is $3,505 and for fiscal year 1998 and subsequent 
625.32  fiscal years the formula allowance is $3,430. 
625.33     Subd. 3.  [CONTRACT DEADLINE AND PENALTY.] (a) The 
625.34  following definitions apply to this subdivision:  
625.35     (1) "Public employer" means:  
625.36     (i) a district; and 
626.1      (ii) a public employer, as defined by section 179A.03, 
626.2   subdivision 15, other than a district that (i) negotiates a 
626.3   contract under chapter 179A with teachers, and (ii) is 
626.4   established by, receives state money, or levies under chapters 
626.5   120 to 129, or 136D, or 268A. 
626.6      (2) "Teacher" means a person, other than a superintendent 
626.7   or assistant superintendent, principal, assistant principal, or 
626.8   a supervisor or confidential employee who occupies a position 
626.9   for which the person must be licensed by the board of teaching, 
626.10  state board of education, the former board of technical 
626.11  colleges, or the board of trustees of the Minnesota state 
626.12  colleges and universities. 
626.13     (b) Notwithstanding any law to the contrary, a public 
626.14  employer and the exclusive representative of the teachers must 
626.15  both sign a collective bargaining agreement on or before January 
626.16  15 of an even-numbered calendar year.  If a collective 
626.17  bargaining agreement is not signed by that date, state aid paid 
626.18  to the public employer for that fiscal year must be reduced.  
626.19  However, state aid must not be reduced if: 
626.20     (1) a public employer and the exclusive representative of 
626.21  the teachers have submitted all unresolved contract items to 
626.22  interest arbitration according to section 179A.16 before 
626.23  December 31 of an odd-numbered year and filed required final 
626.24  positions on all unresolved items with the commissioner of 
626.25  mediation services before January 15 of an even-numbered year; 
626.26  and 
626.27     (2) the arbitration panel has issued its decision within 60 
626.28  days after the date the final positions were filed. 
626.29     (c)(1) For a district that reorganizes according to section 
626.30  122.22, 122.23, or 122.241 to 122.248 effective July 1 of an 
626.31  odd-numbered year, state aid must not be reduced according to 
626.32  this subdivision if the board and the exclusive representative 
626.33  of the teachers both sign a collective bargaining agreement on 
626.34  or before the March 15 following the effective date of 
626.35  reorganization.  
626.36     (2) For a district that jointly negotiates a contract 
627.1   before the effective date of reorganization under section 
627.2   122.22, 122.23, or 122.241 to 122.248 that, for the first time, 
627.3   includes teachers in all districts to be reorganized, state aid 
627.4   must not be reduced according to this subdivision if the board 
627.5   and the exclusive representative of the teachers sign a 
627.6   collective bargaining agreement on or before the March 15 
627.7   following the expiration of the teacher contracts in each 
627.8   district involved in the joint negotiation. 
627.9      (3) Only one extension of the contract deadline is 
627.10  available to a district under this paragraph. 
627.11     (d) The reduction must equal $25 times the number of fund 
627.12  balance pupil units:  
627.13     (1) for a district, that are in the district during that 
627.14  fiscal year; or 
627.15     (2) for a public employer other than a district, that are 
627.16  in programs provided by the employer during the preceding fiscal 
627.17  year. 
627.18     The department must determine the number of full-time 
627.19  equivalent actual pupil units in the programs.  The department 
627.20  must reduce general education aid; if general education aid is 
627.21  insufficient or not paid, the department must reduce other state 
627.22  aids. 
627.23     (e) Reductions from aid to districts and public employers 
627.24  other than districts must be returned to the general fund. 
627.25     Subd. 4.  [COMPENSATORY EDUCATION REVENUE.] The 
627.26  compensatory education revenue for each district equals the 
627.27  formula allowance less $300 times the AFDC pupil units computed 
627.28  according to section 124.17, subdivision 1d. 
627.29     Subd. 5.  [TRAINING AND EXPERIENCE REVENUE.] The training 
627.30  and experience revenue for each district equals the greater of 
627.31  zero or the result of the following computation:  
627.32     (1) subtract .8 from the training and experience index; 
627.33     (2) multiply the result in clause (1) by the product of 
627.34  $660 times the actual pupil units for the school year.  
627.35     Subd. 6.  [FISCAL YEAR 1996 TRAINING AND EXPERIENCE 
627.36  LEVY.] A district's training and experience levy for fiscal year 
628.1   1996 equals its training and experience revenue times the lesser 
628.2   of one or the ratio of the district's adjusted net tax capacity 
628.3   per actual pupil unit for the year before the year the levy is 
628.4   certified to the equalizing factor for the school year to which 
628.5   the levy is attributable. 
628.6      Subd. 7.  [FISCAL YEAR 1996 TRAINING AND EXPERIENCE AID.] A 
628.7   district's training and experience aid for fiscal year 1996 
628.8   equals its training and experience revenue minus its training 
628.9   and experience levy times the ratio of the actual amount levied 
628.10  to the permitted levy. 
628.11     Subd. 8.  [DEFINITIONS.] The definitions in this 
628.12  subdivision apply only to subdivisions 6 and 6a.  
628.13     (a) "High school" means a secondary school that has pupils 
628.14  enrolled in at least the 10th, 11th, and 12th grades.  If there 
628.15  is no secondary school in the district that has pupils enrolled 
628.16  in at least the 10th, 11th, and 12th grades, and the school is 
628.17  at least 19 miles from the next nearest school, the commissioner 
628.18  must designate one school in the district as a high school for 
628.19  the purposes of this section. 
628.20     (b) "Secondary average daily membership" means, for a 
628.21  district that has only one high school, the average daily 
628.22  membership of resident pupils in grades 7 through 12.  For a 
628.23  district that has more than one high school, "secondary average 
628.24  daily membership" for each high school means the product of the 
628.25  average daily membership of resident pupils in grades 7 through 
628.26  12 in the high school, times the ratio of six to the number of 
628.27  grades in the high school. 
628.28     (c) "Attendance area" means the total surface area of the 
628.29  district, in square miles, divided by the number of high schools 
628.30  in the district.  For a district that does not operate a high 
628.31  school and is less than 19 miles from the nearest operating high 
628.32  school, the attendance area equals zero. 
628.33     (d) "Isolation index" for a high school means the square 
628.34  root of 55 percent of the attendance area plus the distance in 
628.35  miles, according to the usually traveled routes, between the 
628.36  high school and the nearest high school.  For a district in 
629.1   which there is located land defined in section 84A.01, 84A.20, 
629.2   or 84A.31, the distance in miles is the sum of: 
629.3      (1) the square root of one-half of the attendance area; and 
629.4      (2) the distance from the border of the district to the 
629.5   nearest high school. 
629.6      (e) "Qualifying high school" means a high school that has 
629.7   an isolation index greater than 23 and that has secondary 
629.8   average daily membership of less than 400.  
629.9      (f) "Qualifying elementary school" means an elementary 
629.10  school that is located 19 miles or more from the nearest 
629.11  elementary school or from the nearest elementary school within 
629.12  the district and, in either case, has an elementary average 
629.13  daily membership of an average of 20 or fewer per grade. 
629.14     (g) "Elementary average daily membership" means, for a 
629.15  district that has only one elementary school, the average daily 
629.16  membership of resident pupils in kindergarten through grade 6.  
629.17  For a district that has more than one elementary school, 
629.18  "average daily membership" for each school means the average 
629.19  daily membership of kindergarten through grade 6 multiplied by 
629.20  the ratio of seven to the number of grades in the elementary 
629.21  school.  For a building in a district where the nearest 
629.22  elementary school is at least 65 miles distant, pupils served 
629.23  must be used to determine average daily membership. 
629.24     Subd. 9.  [SECONDARY SPARSITY REVENUE.] (a) A district's 
629.25  secondary sparsity revenue for a school year equals the sum of 
629.26  the results of the following calculation for each qualifying 
629.27  high school in the district: 
629.28     (1) the formula allowance for the school year less $300, 
629.29  multiplied by 
629.30     (2) the secondary average daily membership of the high 
629.31  school, multiplied by 
629.32     (3) the quotient obtained by dividing 400 minus the 
629.33  secondary average daily membership by 400 plus the secondary 
629.34  daily membership, multiplied by 
629.35     (4) the lesser of 1.5 or the quotient obtained by dividing 
629.36  the isolation index minus 23 by ten. 
630.1      (b) A newly formed district that is the result of districts 
630.2   combining under the cooperation and combination program or 
630.3   consolidating under section 122.23 must receive secondary 
630.4   sparsity revenue equal to the greater of:  (1) the amount 
630.5   calculated under paragraph (a) for the combined district; or (2) 
630.6   the sum of the amounts of secondary sparsity revenue the former 
630.7   districts had in the year before consolidation, increased for 
630.8   any subsequent changes in the secondary sparsity formula. 
630.9      Subd. 10.  [ELEMENTARY SPARSITY REVENUE.] A district's 
630.10  elementary sparsity revenue equals the sum of the following 
630.11  amounts for each qualifying elementary school in the district:  
630.12     (1) the formula allowance for the year less $300, 
630.13  multiplied by 
630.14     (2) the elementary average daily membership of the school, 
630.15  multiplied by 
630.16     (3) the quotient obtained by dividing 140 minus the 
630.17  elementary average daily membership by 140 plus the average 
630.18  daily membership.  
630.19     Subd. 11.  [SUPPLEMENTAL REVENUE.] (a) A district's 
630.20  supplemental revenue allowance for fiscal year 1994 and later 
630.21  fiscal years equals the district's supplemental revenue for 
630.22  fiscal year 1993 divided by the district's 1992-1993 actual 
630.23  pupil units. 
630.24     (b) A district's supplemental revenue allowance is reduced 
630.25  for fiscal year 1995 and later according to subdivision 9. 
630.26     (c) A district's supplemental revenue equals the 
630.27  supplemental revenue allowance, if any, times its actual pupil 
630.28  units for that year.  
630.29     (d) A district may cancel its supplemental revenue by 
630.30  notifying the commissioner of education before June 30, 1994.  A 
630.31  district that is reorganizing under section 122.22, 122.23, or 
630.32  122.241 may cancel its supplemental revenue by notifying the 
630.33  commissioner of children, families, and learning before July 1 
630.34  of the year of the reorganization.  If a district cancels its 
630.35  supplemental revenue according to this paragraph, its 
630.36  supplemental revenue allowance for fiscal year 1993 for purposes 
631.1   of subdivision 9 and section 124A.03, subdivision 3b, equals 
631.2   zero. 
631.3      Subd. 12.  [SUPPLEMENTAL LEVY.] To obtain supplemental 
631.4   revenue, a district may levy an amount not more than the product 
631.5   of its supplemental revenue for the school year times the lesser 
631.6   of one or the ratio of its general education levy to its general 
631.7   education revenue, excluding transition revenue and supplemental 
631.8   revenue, for the same year. 
631.9      Subd. 13.  [SUPPLEMENTAL AID.] A district's supplemental 
631.10  aid equals its supplemental revenue minus its supplemental levy 
631.11  times the ratio of the actual amount levied to the permitted 
631.12  levy. 
631.13     Subd. 14.  [SUPPLEMENTAL REVENUE REDUCTION.] A district's 
631.14  supplemental revenue allowance is reduced by the sum of: 
631.15     (1) the sum of one-fourth of the difference of:  
631.16     (i) the sum of the district's training and experience 
631.17  revenue and compensatory revenue per actual pupil unit for 
631.18  fiscal year 1996, and 
631.19     (ii) the sum of district's training and experience revenue 
631.20  and compensatory revenue per actual pupil unit for fiscal year 
631.21  1994; and 
631.22     (2) $100.  
631.23     A district's supplemental revenue allowance may not be less 
631.24  than zero. 
631.25     Subd. 15.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
631.26  fiscal year 1997 and thereafter, total operating capital revenue 
631.27  for a district equals the amount determined under paragraph (b), 
631.28  (c), (d), (e), or (f), plus $68 times the actual pupil units for 
631.29  the school year.  The revenue must be placed in a reserved 
631.30  account in the general fund and may only be used according to 
631.31  subdivision 11. 
631.32     (b) For fiscal years 1996 and later, capital revenue for a 
631.33  district equals $100 times the district's maintenance cost index 
631.34  times its actual pupil units for the school year. 
631.35     (c) For 1996 and later fiscal years, the previous formula 
631.36  revenue for a district equals $128 times its actual pupil units 
632.1   for fiscal year 1995. 
632.2      (d) Notwithstanding paragraph (b), for fiscal year 1996, 
632.3   the revenue for each district equals 25 percent of the amount 
632.4   determined in paragraph (b) plus 75 percent of the previous 
632.5   formula revenue. 
632.6      (e) Notwithstanding paragraph (b), for fiscal year 1997, 
632.7   the revenue for each district equals 50 percent of the amount 
632.8   determined in paragraph (b) plus 50 percent of the previous 
632.9   formula revenue. 
632.10     (f) Notwithstanding paragraph (b), for fiscal year 1998, 
632.11  the revenue for each district equals 75 percent of the amount 
632.12  determined in paragraph (b) plus 25 percent of the previous 
632.13  formula revenue. 
632.14     (g) The revenue for a district that operates a program 
632.15  under section 121.585, is increased by an amount equal to $15 
632.16  times the number of actual pupil units at the site where the 
632.17  program is implemented. 
632.18     Subd. 16.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
632.19  operating capital revenue may be used only for the following 
632.20  purposes: 
632.21     (1) to acquire land for school purposes; 
632.22     (2) to acquire or construct buildings for school purposes, 
632.23  up to $400,000; 
632.24     (3) to rent or lease buildings, including the costs of 
632.25  building repair or improvement that are part of a lease 
632.26  agreement; 
632.27     (4) to improve and repair school sites and buildings, and 
632.28  equip or reequip school buildings with permanent attached 
632.29  fixtures; 
632.30     (5) for a surplus school building that is used 
632.31  substantially for a public nonschool purpose; 
632.32     (6) to eliminate barriers or increase access to school 
632.33  buildings by individuals with a disability; 
632.34     (7) to bring school buildings into compliance with the 
632.35  uniform fire code adopted according to chapter 299F; 
632.36     (8) to remove asbestos from school buildings, encapsulate 
633.1   asbestos, or make asbestos-related repairs; 
633.2      (9) to clean up and dispose of polychlorinated biphenyls 
633.3   found in school buildings; 
633.4      (10) to clean up, remove, dispose of, and make repairs 
633.5   related to storing heating fuel or transportation fuels such as 
633.6   alcohol, gasoline, fuel oil, and special fuel, as defined in 
633.7   section 296.01; 
633.8      (11) for energy audits for school buildings and to modify 
633.9   buildings if the audit indicates the cost of the modification 
633.10  can be recovered within ten years; 
633.11     (12) to improve buildings that are leased according to 
633.12  section 123.36, subdivision 10; 
633.13     (13) to pay special assessments levied against school 
633.14  property but not to pay assessments for service charges; 
633.15     (14) to pay principal and interest on state loans for 
633.16  energy conservation according to section 216C.37 or loans made 
633.17  under the northeast Minnesota economic protection trust fund act 
633.18  according to sections 298.292 to 298.298; 
633.19     (15) to purchase or lease interactive telecommunications 
633.20  equipment; 
633.21     (16) by board resolution, to transfer money into the debt 
633.22  redemption fund to pay the amounts needed to meet, when due, 
633.23  principal and interest payments on certain obligations issued 
633.24  according to chapter 475; 
633.25     (17) to pay capital expenditure equipment-related 
633.26  assessments of any entity formed under a cooperative agreement 
633.27  between two or more districts; 
633.28     (18) to purchase or lease computers and related materials, 
633.29  copying machines, telecommunications equipment, and other 
633.30  noninstructional equipment; 
633.31     (19) to purchase or lease assistive technology or equipment 
633.32  for instructional programs; 
633.33     (20) to purchase textbooks; 
633.34     (21) to purchase new and replacement library books; 
633.35     (22) to purchase vehicles; 
633.36     (23) to purchase or lease telecommunications equipment, 
634.1   computers, and related equipment for integrated information 
634.2   management systems for: 
634.3      (i) managing and reporting learner outcome information for 
634.4   all students under a results-oriented graduation rule; 
634.5      (ii) managing student assessment, services, and achievement 
634.6   information required for students with individual education 
634.7   plans; and 
634.8      (iii) other classroom information management needs; and 
634.9      (24) to pay personnel costs directly related to the 
634.10  acquisition, operation, and maintenance of telecommunications 
634.11  systems, computers, related equipment, and network and 
634.12  applications software. 
634.13     Subd. 17.  [USES OF REVENUE.] Except as otherwise 
634.14  prohibited by law, a district may spend general fund money for 
634.15  capital purposes. 
634.16     Subd. 18.  [MAINTENANCE COST INDEX.] (a) A district's 
634.17  maintenance cost index is equal to the ratio of: 
634.18     (1) the total weighted square footage for all eligible 
634.19  district-owned facilities; and 
634.20     (2) the total unweighted square footage of these facilities.
634.21     (b) The department shall determine a district's maintenance 
634.22  cost index annually.  Eligible district-owned facilities must 
634.23  include only instructional or administrative square footage 
634.24  owned by the district.  The commissioner may adjust the age of a 
634.25  building or addition for major renovation projects. 
634.26     (c) The square footage weighting factor for each original 
634.27  building or addition equals the lesser of: 
634.28     (1) one plus the ratio of the age in years to 100; or 
634.29     (2) 1.5. 
634.30     (d) The weighted square footage for each original building 
634.31  or addition equals the product of the unweighted square footage 
634.32  times the square footage weighting factor. 
634.33     Subd. 19.  [TRANSPORTATION SPARSITY DEFINITIONS.] The 
634.34  definitions in this subdivision apply to subdivisions 13a and 
634.35  13b. 
634.36     (a) "Sparsity index" for a district means the greater of .2 
635.1   or the ratio of the square mile area of the district to the 
635.2   actual pupil units of the district. 
635.3      (b) "Density index" for a district means the ratio of the 
635.4   square mile area of the district to the actual pupil units of 
635.5   the district.  However, the density index for a district cannot 
635.6   be greater than .2 or less than .005. 
635.7      (c) "Fiscal year 1996 base allowance" for a district means 
635.8   the result of the following computation: 
635.9      (1) sum the following amounts: 
635.10     (i) the fiscal year 1996 regular transportation revenue for 
635.11  the district according to section 124.225, subdivision 7d, 
635.12  paragraph (a), excluding the revenue attributable nonpublic 
635.13  school pupils and to pupils with disabilities receiving special 
635.14  transportation services; plus 
635.15     (ii) the fiscal year 1996 nonregular transportation revenue 
635.16  for the district according to section 124.225, subdivision 7d, 
635.17  paragraph (b), excluding the revenue for desegregation 
635.18  transportation according to section 124.225, subdivision 1, 
635.19  paragraph (c), clause (4), and the revenue attributable to 
635.20  nonpublic school pupils and to pupils with disabilities 
635.21  receiving special transportation services or board and lodging; 
635.22  plus 
635.23     (iii) the fiscal year 1996 excess transportation levy for 
635.24  the district according to section 124.226, subdivision 5, 
635.25  excluding the levy attributable to nonpublic school pupils; plus 
635.26     (iv) the fiscal year 1996 late activity bus levy for the 
635.27  district according to section 124.226, subdivision 9, excluding 
635.28  the levy attributable to nonpublic school pupils; plus 
635.29     (v) an amount equal to one-third of the fiscal year 1996 
635.30  bus depreciation for the district according to section 124.225, 
635.31  subdivision 1, paragraph (b), clauses (2), (3), and (4). 
635.32     (2) divide the result in clause (1) by the district's 
635.33  1995-1996 actual pupil units. 
635.34     Subd. 20.  [TRANSPORTATION SPARSITY REVENUE ALLOWANCE.] (a) 
635.35  A district's transportation sparsity allowance equals the 
635.36  greater of zero or the result of the following computation: 
636.1      (i) Multiply the formula allowance according to section 
636.2   124A.22, subdivision 2, by .1469. 
636.3      (ii) Multiply the result in clause (i) by the district's 
636.4   sparsity index raised to the 26/100 power. 
636.5      (iii) Multiply the result in clause (ii) by the district's 
636.6   density index raised to the 13/100 power. 
636.7      (iv) Multiply the formula allowance according to section 
636.8   124A.22, subdivision 2, by .0485. 
636.9      (v) Subtract the result in clause (iv) from the result in 
636.10  clause (iii). 
636.11     (b) Transportation sparsity revenue is equal to the 
636.12  transportation sparsity allowance times the actual pupil units. 
636.13     Subd. 21.  [TRANSITION ALLOWANCE.] (a) A district's 
636.14  transportation transition allowance for fiscal year 1997 equals 
636.15  the result of the following computation: 
636.16     (1) if the result in subdivision 13a, paragraph (a), clause 
636.17  (iii), for fiscal year 1997 is less than the fiscal year 1996 
636.18  base allowance, the transportation transition allowance equals 
636.19  the fiscal year 1996 base allowance minus the result in 
636.20  subdivision 13a, paragraph (a), clause (iii). 
636.21     (2) if the result in subdivision 13a, paragraph (b), for 
636.22  fiscal year 1997 is greater than the fiscal year 1996 base 
636.23  allowance and less than 110 percent of the fiscal year 1996 base 
636.24  allowance, the transportation transition allowance equals zero. 
636.25     (3) if the result in subdivision 13a, paragraph (b), for 
636.26  fiscal year 1997 is greater than 110 percent of the fiscal year 
636.27  1996 base allowance, the transportation transition allowance 
636.28  equals 110 percent of the fiscal year 1996 base allowance minus 
636.29  the result in subdivision 13a, paragraph (a), clause (iii). 
636.30     (b) A district's transportation transition allowance for 
636.31  fiscal year 1998 equals the result of the following: 
636.32     (1) if the result in subdivision 13a, paragraph (a), clause 
636.33  (iii), for fiscal year 1998 is less than the fiscal year 1996 
636.34  base allowance, the transportation transition allowance equals 
636.35  the fiscal year 1996 base allowance minus the result in 
636.36  subdivision 13a, paragraph (a), clause (iii); or 
637.1      (2) if the result in subdivision 13a, paragraph (a), clause 
637.2   (iii), for fiscal year 1998 is greater than or equal to the 
637.3   fiscal year 1996 base allowance, the transportation transition 
637.4   allowance equals zero. 
637.5      (c) For fiscal years 1997 and 1998, a district's training 
637.6   and experience transition allowance is equal to the training and 
637.7   experience revenue the district would have received under 
637.8   Minnesota Statutes 1994, section 124A.22, subdivision 4, divided 
637.9   by the actual pupil units for fiscal year 1997 minus $130.  For 
637.10  fiscal year 1999 and later, a district's training and experience 
637.11  transition allowance equals zero.  
637.12     If the training and experience transition allowance is less 
637.13  than zero, the reduction must be determined according to the 
637.14  following schedule: 
637.15     (i) for fiscal year 1997, the reduction is equal to .9 
637.16  times the amount initially determined; 
637.17     (ii) for fiscal year 1998, the reduction is equal to .75 
637.18  times the amount initially determined; 
637.19     (iii) for fiscal year 1999, the reduction is equal to .50 
637.20  times the amount initially determined; 
637.21     (iv) for fiscal year 2000, the reduction is equal to .25 
637.22  times the amount initially determined; and 
637.23     (v) for fiscal year 2001 and thereafter, the transition 
637.24  allowance must not be less than zero.  
637.25     (d) A district's transition allowance for fiscal year 1997 
637.26  and thereafter is equal to the sum of its transportation 
637.27  transition allowance and its training and experience transition 
637.28  allowance. 
637.29     Subd. 22.  [TRANSITION REVENUE ADJUSTMENT.] A district's 
637.30  transition revenue adjustment equals the district's transition 
637.31  allowance times the actual pupil units for the school year. 
637.32     Subd. 23.  [TRANSITION LEVY ADJUSTMENT.] A district's 
637.33  general education levy must be adjusted by an amount equal to 
637.34  the district's transition revenue times the lesser of 1 or the 
637.35  ratio of the district's general education levy to its general 
637.36  education revenue, excluding transition revenue and supplemental 
638.1   revenue. 
638.2      Subd. 24.  [TRANSITION AID ADJUSTMENT.] A district's 
638.3   transition aid adjustment is the difference between the 
638.4   transition revenue and the transition levy. 
638.5      Subd. 25.  [TRAINING AND EXPERIENCE REVENUE.] Training and 
638.6   experience revenue for each district equals the greater of zero 
638.7   or the result of the following computation: 
638.8      (1) subtract .8 from the training and experience index; 
638.9      (2) multiply the result in clause (1) by the product of 
638.10  $660 times the actual pupil units for that school year. 
638.11     Sec. 110.  [124D.374] [LEARNING AND DEVELOPMENT REVENUE 
638.12  AMOUNT AND USE.] 
638.13     Subdivision 1.  [REVENUE.] Of a district's general 
638.14  education revenue an amount equal to the sum of the number of 
638.15  elementary fund balance pupils in average daily membership 
638.16  defined in section 124.17, subdivision 1h, and one-half of the 
638.17  number of kindergarten fund balance pupils in average daily 
638.18  membership as defined in section 124.17, subdivision 1h, times 
638.19  .06 for fiscal year 1995 and thereafter times the formula 
638.20  allowance must be reserved according to this section. 
638.21     Subd. 2.  [INSTRUCTOR DEFINED.] Primary instructor means a 
638.22  public employee licensed by the board of teaching whose duties 
638.23  are full-time instruction, excluding a teacher for whom 
638.24  categorical aids are received pursuant to sections 124.3201, 
638.25  124.3202, and 124.321.  Except as provided in section 125.230, 
638.26  subdivision 6, instructor does not include supervisory and 
638.27  support personnel, except school social workers as defined in 
638.28  section 125.03.  An instructor whose duties are less than 
638.29  full-time instruction must be included as an equivalent only for 
638.30  the number of hours of instruction in grades kindergarten 
638.31  through 6. 
638.32     Subd. 3.  [INSTRUCTION CONTACT TIME.] Instruction may be 
638.33  provided by a primary instructor, by a team of instructors, or 
638.34  by teacher resident supervised by a primary instructor.  The 
638.35  district must maximize instructor-to-learner average 
638.36  instructional contact time. 
639.1      Subd. 4.  [REVENUE USE.] (a) Revenue must be used according 
639.2   to either paragraph (b), (c), or (d). 
639.3      (b) Revenue must be used to reduce and maintain the 
639.4   district's instructor to learner ratios in kindergarten through 
639.5   grade 6 to a level of 1 to 17 on average.  The district must 
639.6   prioritize the use of the revenue to attain this level initially 
639.7   in kindergarten and grade 1 and then through the subsequent 
639.8   grades as revenue is available.  
639.9      (c) Notwithstanding paragraph (b), for fiscal year 1995, a 
639.10  district with exceptional need as defined in subdivision 6, 
639.11  paragraph (a), may use the revenue to reduce and maintain the 
639.12  district's instructor-to-learner ratios in kindergarten through 
639.13  grade 6 to a level that is at least 2.0 less than the district's 
639.14  adopted staffing ratio, if the remaining learning and 
639.15  development revenue is used to continue or initiate staffing 
639.16  patterns that meet the needs of a diverse student population.  
639.17  Programs to meet the needs of a diverse student population may 
639.18  include programs for at-risk pupils and learning enrichment 
639.19  programs. 
639.20     (d) The revenue may be used to prepare and use an 
639.21  individualized learning plan for each learner.  A district must 
639.22  not increase the district wide instructor-to-learner ratios in 
639.23  other grades as a result of reducing instructor-to-learner 
639.24  ratios in kindergarten through grade 6.  Revenue may not be used 
639.25  to provide instructor preparation time or to provide the 
639.26  district's share of revenue required under section 124.311.  A 
639.27  district may use a portion of the revenue reserved under this 
639.28  section to employ up to the same number of full-time equivalent 
639.29  education assistants or aides as the district employed during 
639.30  the 1992-1993 school year under Minnesota Statutes 1992, section 
639.31  124.331, subdivision 2. 
639.32     Subd. 5.  [ADDITIONAL REVENUE USE.] If the board of a 
639.33  district determines that the district has achieved and is 
639.34  maintaining the instructor-to-learner ratios specified in 
639.35  subdivision 4 and is using individualized learning plans, the 
639.36  board may use the revenue to purchase material and services or 
640.1   provide staff development needed for reduced 
640.2   instructor-to-learner ratios.  If additional revenue remains, 
640.3   the district must use the revenue to improve program offerings, 
640.4   including programs provided through interactive television, 
640.5   throughout the district or other general education purposes. 
640.6      Subd. 6.  [EXCEPTIONAL NEED DEFINED.] (a) A district is 
640.7   considered to have exceptional need if the district has the 
640.8   following characteristics: 
640.9      (1) ten percent or more of the district's pupils are 
640.10  eligible for free and reduced lunch as of October 1 of the 
640.11  previous fiscal year; 
640.12     (2) ten percent or more of the district's pupils are 
640.13  students of color; 
640.14     (3) the district's adjusted net tax capacity divided by its 
640.15  pupil units for the current year is less than $3,500; and 
640.16     (4) the district's general education revenue per pupil unit 
640.17  is less than the average general education revenue per pupil 
640.18  unit for the economic development region in which the district 
640.19  is located. 
640.20     (b) A school building is considered to have exceptional 
640.21  need if the school building has the following characteristics: 
640.22     (1) 50 percent or more of the school building's pupils are 
640.23  eligible for free and reduced lunch as of October 1 of the 
640.24  previous fiscal year; 
640.25     (2) the adjusted net tax capacity of the district in which 
640.26  the school building is located, divided by the district's pupil 
640.27  units for the current year, is less than $3,500; and 
640.28     (3) the district's general education revenue per pupil unit 
640.29  is less than the average general education revenue per pupil 
640.30  unit for the economic development region in which the district 
640.31  is located. 
640.32     Sec. 111.  [124D.378] [GENERAL EDUCATION LEVY AND AID.] 
640.33     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
640.34  commissioner must establish the general education tax rate by 
640.35  July 1 of each year for levies payable in the following year.  
640.36  The general education tax capacity rate must be a rate, rounded 
641.1   up to the nearest tenth of a percent, that, when applied to the 
641.2   adjusted net tax capacity for all districts, raises the amount 
641.3   specified in this subdivision.  The general education tax rate 
641.4   must be the rate that raises $1,054,000,000 for fiscal year 1996 
641.5   and $1,359,000,000 for fiscal year 1997 and later fiscal years.  
641.6   The general education tax rate may not be changed due to changes 
641.7   or corrections made to a district's adjusted net tax capacity 
641.8   after the tax rate has been established.  
641.9      Subd. 2.  [GENERAL EDUCATION LEVY.] To obtain general 
641.10  education revenue, excluding supplemental revenue, a district 
641.11  may levy an amount not to exceed the general education tax rate 
641.12  times the adjusted net tax capacity of the district for the 
641.13  preceding year.  If the amount of the general education levy 
641.14  would exceed the general education revenue, excluding 
641.15  supplemental revenue, the general education levy must be 
641.16  determined according to subdivision 3.  
641.17     Subd. 3.  [GENERAL EDUCATION LEVY; DISTRICTS OFF THE 
641.18  FORMULA.] If the amount of the general education levy for a 
641.19  district exceeds the district's general education revenue, 
641.20  excluding training and experience revenue and supplemental 
641.21  revenue, the amount of the general education levy must be 
641.22  limited to the following: 
641.23     (1) the district's general education revenue, excluding 
641.24  training and experience revenue and supplemental revenue; plus 
641.25     (2) the amount of the aid reduction for the same school 
641.26  year according to section 124A.24; minus 
641.27     (3) payments made for the same school year according to 
641.28  section 124A.035, subdivision 4. 
641.29     For purposes of statutory cross-reference, a levy made 
641.30  according to this subdivision must be construed to be the levy 
641.31  made according to subdivision 2. 
641.32     Subd. 4.  [GENERAL EDUCATION AID.] A district's general 
641.33  education aid is the sum of the following amounts:  
641.34     (1) the product of (i) the difference between the general 
641.35  education revenue, excluding transition revenue and supplemental 
641.36  revenue, and the general education levy, times (ii) the ratio of 
642.1   the actual amount levied to the permitted levy; 
642.2      (2) transition aid according to section 124A.22, 
642.3   subdivision 13e; 
642.4      (3) supplemental aid according to section 124.214, 
642.5   subdivision 2; 
642.6      (4) shared time aid according to section 124A.02, 
642.7   subdivision 21; and 
642.8      (5) referendum aid according to section 124A.03. 
642.9      Subd. 5.  [USES OF REVENUE.] Except as provided in section 
642.10  124A.225, general education revenue may be used during the 
642.11  regular school year and the summer for general and special 
642.12  school purposes. 
642.13     Sec. 112.  [124D.38] [GENERAL EDUCATION LEVY EQUITY.] 
642.14     If a district's general education levy is determined 
642.15  according to section 124A.23, subdivision 3, an amount must be 
642.16  deducted from state aid authorized in this chapter and chapters 
642.17  124 and 124B, receivable for the same school year, and from 
642.18  other state payments receivable for the same school year 
642.19  authorized in chapter 273.  The aid in section 124.646 must not 
642.20  be reduced. 
642.21     The amount of the deduction equals the difference between: 
642.22     (1) the general education tax rate, according to section 
642.23  124A.23, times the district's adjusted net tax capacity used to 
642.24  determine the general education aid for the same school year; 
642.25  and 
642.26     (2) the district's general education revenue, excluding 
642.27  transition revenue and supplemental revenue, for the same school 
642.28  year, according to section 124A.22. 
642.29     Sec. 113.  [124D.384] [REDUCTION TO GENERAL EDUCATION 
642.30  REVENUE.] 
642.31     Subdivision 1.  [REVENUE REDUCTION.] A district's general 
642.32  education revenue for a school year must be reduced if the 
642.33  estimated net unappropriated operating fund balance as of June 
642.34  30 in the prior school year exceeds 25 percent of the formula 
642.35  allowance for the current fiscal year times the fund balance 
642.36  pupil units in the prior year.  For purposes of this subdivision 
643.1   and section 124.243, subdivision 2, fund balance pupil units 
643.2   means the number of resident pupil units in average daily 
643.3   membership, including shared time pupils, according to section 
643.4   124A.02, subdivision 20, plus 
643.5      (1) pupils attending the district for which general 
643.6   education aid adjustments are made according to section 
643.7   124A.036, subdivision 5; minus 
643.8      (2) the sum of the resident pupils attending other 
643.9   districts for which general education aid adjustments are made 
643.10  according to section 124A.036, subdivision 5, plus pupils for 
643.11  whom payment is made according to section 126.22, subdivision 8, 
643.12  or 126.23.  The amount of the reduction must equal the lesser of:
643.13     (1) the amount of the excess, or 
643.14     (2) $250 times the actual pupil units for the school year. 
643.15     The final adjustment payments made under section 124.195, 
643.16  subdivision 6, must be adjusted to reflect actual net operating 
643.17  fund balances as of June 30 of the prior school year. 
643.18     Subd. 2.  [ALTERNATIVE REDUCTION CALCULATION.] For any 
643.19  district where the ratio of (1) the number of nonpublic students 
643.20  ages 5 to 18, according to the report required under section 
643.21  120.102, to (2) the total number of residents in the district 
643.22  ages 5 to 18 as counted according to the annual fall school 
643.23  census is greater than 40 percent, the district's net 
643.24  unappropriated operating fund balance for that year for the 
643.25  purpose of calculating the fund balance reduction under this 
643.26  section is equal to the sum of the district's net unappropriated 
643.27  fund balance in the general, transportation, and food service 
643.28  funds. 
643.29     Subd. 3.  [LEVY REDUCTION.] If a district's general 
643.30  education revenue is reduced, the general education levy must be 
643.31  reduced by the following amount: 
643.32     (1) the reduction specified in subdivision 1, times 
643.33     (2) the lesser of one or the ratio of the district's 
643.34  general education levy to its general education revenue, 
643.35  excluding training and experience revenue and supplemental 
643.36  revenue. 
644.1      Subd. 4.  [AID REDUCTION.] A district's general education 
644.2   aid must be reduced by an amount equal to the difference between 
644.3   the revenue reduction and the levy reduction. 
644.4      Subd. 5.  [ALLOCATION AMONG OPERATING FUNDS.] The revenue 
644.5   reduction required under this section must be allocated to the 
644.6   transportation fund and the community service fund in the 
644.7   following manner: 
644.8      (1) each year, a district must calculate the ratio of the 
644.9   transportation net unappropriated operating fund balance and the 
644.10  community service net unappropriated operating fund balance to 
644.11  the total net unappropriated operating fund balance; 
644.12     (2) multiply the ratios computed in clause (1) by the total 
644.13  fund balance reduction required under this section; 
644.14     (3) the district must transfer the amounts, if any, 
644.15  calculated in clause (2) from the transportation and community 
644.16  service funds to the general fund. 
644.17     Subd. 6.  [ALLOCATION AMONG ACCOUNTS.] The district must 
644.18  apportion any fund balance reduction under this section among 
644.19  all reserved and unreserved fund balance accounts included in 
644.20  the net unappropriated operating fund balance in the proportion 
644.21  that each account bears to the total. 
644.22     Sec. 114.  [124D.388] [COMPENSATORY EDUCATION REVENUE.] 
644.23     Subdivision 1.  [USE OF THE REVENUE.] The compensatory 
644.24  education revenue under section 124A.22, subdivision 3, must be 
644.25  used to meet the educational needs of pupils whose educational 
644.26  achievement is below the level that is appropriate for pupils of 
644.27  their age.  These needs may be met by providing the following: 
644.28     (1) direct instructional services under the assurance of 
644.29  mastery program according to section 124.311; 
644.30     (2) remedial instruction in reading, language arts, and 
644.31  mathematics to improve the achievement level of these pupils; 
644.32     (3) additional teachers and teacher aides to provide more 
644.33  individualized instruction to these pupils; 
644.34     (4) summer programs that enable these pupils to improve 
644.35  their achievement or that reemphasize material taught during the 
644.36  regular school year; 
645.1      (5) in-service education for teachers, teacher aides, 
645.2   principals, and other personnel to improve their ability to 
645.3   recognize these pupils and provide appropriate responses to the 
645.4   pupils' needs; 
645.5      (6) for instructional material for these pupils including:  
645.6   textbooks, workbooks, periodicals, pamphlets, photographs, 
645.7   reproductions, filmstrips, prepared slides, prerecorded video 
645.8   programs, sound recordings, desk charts, games, study prints and 
645.9   pictures, desk maps, models, learning kits, blocks and cubes, 
645.10  flashcards, instructional computer software programs, pencils, 
645.11  pens, crayons, notebooks, duplicating fluids, and papers; 
645.12     (7) programs to reduce truancy, encourage completion of 
645.13  high school, enhance self-concept, provide health services, 
645.14  provide nutrition services, provide a safe and secure learning 
645.15  environment, provide coordination for pupils receiving services 
645.16  from other governmental agencies, provide psychological services 
645.17  to determine the level of social, emotional, cognitive, and 
645.18  intellectual development, and provide counseling services, 
645.19  guidance services, and social work services; 
645.20     (8) bilingual programs, bicultural programs, and programs 
645.21  for pupils of limited English proficiency; 
645.22     (9) all day kindergarten; 
645.23     (10) extended school day and extended school year programs; 
645.24  and 
645.25     (11) other methods to increase achievement, as needed.  
645.26     Subd. 2.  [BUILDING ALLOCATION.] A district must consider 
645.27  the concentration of children from low-income families in each 
645.28  school building in the district when allocating compensatory 
645.29  revenue. 
645.30     Subd. 3.  [SEPARATE ACCOUNTS.] Each district that receives 
645.31  compensatory education revenue shall maintain separate accounts 
645.32  to identify expenditures for salaries and programs related to 
645.33  this revenue. 
645.34     Subd. 4.  [ANNUAL EXPENDITURE REPORT.] Each year a district 
645.35  that receives compensatory education revenue must submit a 
645.36  report identifying the expenditures it incurred in providing 
646.1   compensatory education to the pupils described in subdivision 
646.2   1.  The report must conform to uniform financial and reporting 
646.3   standards established for this purpose. 
646.4      Sec. 115.  [124D.39] [RESERVED REVENUE FOR STAFF 
646.5   DEVELOPMENT.] 
646.6      Subdivision 1.  [STAFF DEVELOPMENT AND PARENTAL INVOLVEMENT 
646.7   REVENUE.] A district is encouraged to reserve general education 
646.8   revenue for in-service education for programs under section 
646.9   126.77, subdivision 2, for staff development plans, including 
646.10  plans for challenging instructional activities and experiences 
646.11  under section 126.70, and for curriculum development and 
646.12  programs, other in-service education, teachers' workshops, 
646.13  teacher conferences, the cost of substitute teachers staff 
646.14  development purposes, and other related costs for staff 
646.15  development efforts.  Districts may expend an additional amount 
646.16  of basic revenue for staff development based on their needs.  
646.17  The board must initially allocate 50 percent of the revenue to 
646.18  each school site in the district on a per teacher basis, which 
646.19  must be retained by the school site until used.  The board may 
646.20  retain 25 percent to be used for district wide staff development 
646.21  efforts.  The remaining 25 percent of the revenue must be used 
646.22  to make grants to school sites that demonstrate exemplary use of 
646.23  allocated staff development revenue.  A grant may be used for 
646.24  any purpose authorized under section 126.70, 126.77, subdivision 
646.25  2, or for the costs of curriculum development and programs, 
646.26  other in-service education, teachers' workshops, teacher 
646.27  conferences, substitute teachers for staff development purposes, 
646.28  and other staff development efforts, and determined by the site 
646.29  decision-making team.  The site decision-making team must 
646.30  demonstrate to the board the extent to which staff at the site 
646.31  have met the outcomes of the program.  The board may withhold a 
646.32  portion of initial allocation of revenue if the staff 
646.33  development outcomes are not being met. 
646.34     Subd. 2.  [CAREER TEACHER STAFF DEVELOPMENT.] Of a 
646.35  district's basic revenue under section 124A.22, subdivision 2, 
646.36  an amount equal to $5 times the number of actual pupil units 
647.1   must be reserved by a district operating a career teacher 
647.2   program according to sections 125.701 to 125.705.  The revenue 
647.3   may be used only to provide staff development for the career 
647.4   teacher program. 
647.5      Sec. 116.  [124D.394] [RESERVED REVENUE FOR CERTAIN TEACHER 
647.6   PROGRAM.] 
647.7      A district that has a family connections program or a 
647.8   mentor-teacher program may reserve part of the basic revenue 
647.9   under section 124A.22, subdivision 2, for the district's share 
647.10  of the portion of the teaching contract that is in addition to 
647.11  the standard teaching contract of the district. 
647.12     Sec. 117.  [124D.398] [STAFF DEVELOPMENT INCENTIVE.] 
647.13     Subdivision 1.  [ELIGIBILITY.] A school site is eligible 
647.14  for revenue under this section if it has implemented an 
647.15  outplacement program on an ongoing basis to counsel staff and 
647.16  has implemented a program according to section 125.231. 
647.17     Subd. 2.  [REVENUE.] Staff development incentive revenue is 
647.18  equal to the number of teachers at the site times $25. 
647.19     Subd. 3.  [STAFF DEVELOPMENT LEVY.] A district's levy 
647.20  equals its revenue times the lesser of one or the ratio of: 
647.21     (1) the quotient derived by dividing the district's 
647.22  adjusted net tax capacity for the year before the year the levy 
647.23  is certified by the district's actual pupil units for the school 
647.24  year to which the levy is attributable, to 
647.25     (2) the equalizing factor for the school year to which the 
647.26  levy is attributable. 
647.27     Subd. 4.  [STAFF DEVELOPMENT AID.] A district's aid equals 
647.28  its revenue minus its levy times the ratio of the actual amount 
647.29  levied to the permitted levy. 
647.30     Subd. 5.  [USE.] The revenue must be used at the site for 
647.31  staff development purposes. 
647.32     Sec. 118.  [124D.40] [STATEWIDE AVERAGE REVENUE.] 
647.33     By October 1 of each year the commissioner must estimate 
647.34  the statewide average general education revenue per actual pupil 
647.35  unit and the range in general education revenue among pupils and 
647.36  districts by computing the difference between the fifth and 
648.1   ninety-fifth percentiles of general education revenue.  The 
648.2   commissioner must provide that information to all districts. 
648.3      If the disparity in general education revenue as measured 
648.4   by the difference between the fifth and ninety-fifth percentiles 
648.5   increases in any year, the commissioner must propose a change in 
648.6   the general education formula that will limit the disparity in 
648.7   general education revenue to no more than the disparity for the 
648.8   previous school year.  The commissioner must submit the proposal 
648.9   to the education committees of the legislature by January 15. 
648.10     Sec. 119.  [124D.404] [EQUITABLE COMPENSATION PENALTY.] 
648.11     Subdivision 1.  [IMPLEMENTATION.] A district subject to 
648.12  sections 471.991 to 471.999 must implement the plan to establish 
648.13  equitable compensation relationships set forth in its report to 
648.14  the commissioner of employee relations.  The plan must be 
648.15  implemented by December 31, 1991, unless a later date is 
648.16  approved by the commissioner.  If a report was filed before 
648.17  October 1, 1987, and had an implementation date after December 
648.18  31, 1991, the date in the report must be approved by the 
648.19  commissioner.  
648.20     Subd. 2.  [AID REDUCTION FOR ADMINISTRATION COSTS.] By 
648.21  October 1, 1992, the commissioner of employee relations must 
648.22  certify to the commissioner of education the districts that have 
648.23  not complied with subdivision 1.  For each of these school 
648.24  districts, the commissioner of education must reduce general 
648.25  education aid for fiscal year 1993 by an amount equal to five 
648.26  percent of the district's administration costs for the 1990-1991 
648.27  school year.  If the reduction exceeds the district's general 
648.28  education aid, the reduction must be made from other aids paid 
648.29  to the district.  
648.30     Subd. 3.  [ADJUSTMENT OF YEARS.] The commissioners of 
648.31  employee relations and children, families, and learning must 
648.32  adjust the years designated in subdivision 2 for districts with 
648.33  implementation dates after December 31, 1991.  
648.34     Subd. 4.  [EXTENSIONS.] The commissioner of employee 
648.35  relations must extend an implementation date upon a finding that 
648.36  failure to implement was attributable to severe hardship or to 
649.1   circumstances beyond the control of the district. 
649.2      Sec. 120.  [124D.408] [TITLE.] 
649.3      Sections 124A.697 to 124A.73 may be cited as the "Minnesota 
649.4   education finance act of 1992." 
649.5      Sec. 121.  [124D.41] [POLICY.] 
649.6      Financing the education of our children is one of state 
649.7   government's most important functions.  In performing this 
649.8   function, the state seeks to provide sufficient funding while 
649.9   encouraging equity, accountability, and incentives toward 
649.10  quality improvement.  To help achieve these goals and to help 
649.11  control future spending growth, the state will fund core 
649.12  instruction and related support services, will facilitate 
649.13  improvement in the quality and delivery of programs and 
649.14  services, and will equalize revenues raised locally for 
649.15  discretionary purposes. 
649.16     Sec. 122.  [124D.414] [CORE INSTRUCTIONAL AID.] 
649.17     Subdivision 1.  [BASIC OUTCOMES.] Basic outcomes are 
649.18  defined as learner outcomes that must be achieved as a 
649.19  requirement for graduation, specified in rule by the state board.
649.20  Basic outcomes are the basic knowledge and skills determined 
649.21  necessary by the state board for graduates to become productive 
649.22  employees, parents, and citizens.  The state board must review 
649.23  and amend, if necessary, its graduation rule every two years. 
649.24     Subd. 2.  [AID AMOUNT.] Core instructional aid is equal to 
649.25  the cost determined necessary by the legislature to achieve the 
649.26  basic outcomes for each student times the number of actual pupil 
649.27  units for the school year plus support services aid for the 
649.28  district as determined under section 124A.711.  The core 
649.29  instructional aid allowance for fiscal year 1998 and thereafter 
649.30  is zero. 
649.31     Subd. 3.  [AID TO LEARNING SITES.] Each district is 
649.32  encouraged to direct core instructional aid to the learning 
649.33  sites in the district and minimize the core instructional aid 
649.34  used for other programs or services.  Each district must, to the 
649.35  extent possible, facilitate allocation of each learning site's 
649.36  core instructional aid by site management teams consisting of 
650.1   site administrators, teachers, parents, and other interested 
650.2   persons. 
650.3      Subd. 4.  [AID USES.] Aid received under this section may 
650.4   only be used to deliver instructional services needed to assure 
650.5   that all pupils in the district achieve the basic outcomes 
650.6   through the following programs and services: 
650.7      (1) salaries and benefits for licensed and nonlicensed 
650.8   instructional staff used to instruct or direct instructional 
650.9   delivery or provide academic instructional support services; 
650.10     (2) instructional supplies and resources including, but not 
650.11  limited to, curricular materials, maps, individualized 
650.12  instructional materials, test materials, and other related 
650.13  supplies; 
650.14     (3) payments to other service providers for direct 
650.15  instruction or instructional materials; 
650.16     (4) computers, interactive television, and other 
650.17  technologically related equipment used in the direct delivery of 
650.18  instruction; 
650.19     (5) programs and services related to students' academic and 
650.20  career progression including, but not limited to, community- and 
650.21  work-based learning through mentoring, community service, and 
650.22  youth apprenticeships; 
650.23     (6) early childhood education programs designed to ensure 
650.24  that students are ready to learn when they enter the education 
650.25  system; and 
650.26     (7) activities related to measurement of student progress 
650.27  toward basic outcomes. 
650.28     Sec. 123.  [124D.418] [ELECTIVE INSTRUCTIONAL REVENUE.] 
650.29     Subdivision 1.  [ELECTIVE OUTCOMES.] Elective outcomes are 
650.30  defined as learner outcomes that may be offered to students that 
650.31  are not defined as basic outcomes.  The standards of achievement 
650.32  of elective outcomes are determined by the local board. 
650.33     Subd. 2.  [REVENUE.] Elective instructional revenue is 
650.34  equal to the elective instructional revenue allowance times the 
650.35  number of pupil units for the school year.  The revenue 
650.36  allowance for fiscal year 2000 and thereafter is zero. 
651.1      Subd. 3.  [LEVY.] Elective instructional levy is equal to 
651.2   elective instructional revenue times the lesser of one or the 
651.3   ratio of: 
651.4      (1) net tax capacity divided by the number of pupil units 
651.5   for the year the revenue is attributable, divided by 
651.6      (2) the equalizing factor. 
651.7      Subd. 4.  [AID.] Elective instructional aid is equal to 
651.8   elective instructional revenue minus elective instructional 
651.9   levy.  If a district levies less than the authorized amount, the 
651.10  aid must be reduced proportionately. 
651.11     Subd. 5.  [REVENUE USE.] Elective instructional revenue may 
651.12  only be used for the following purposes: 
651.13     (1) salaries and benefits for licensed and nonlicensed 
651.14  instructional staff used to instruct or direct instructional 
651.15  delivery; 
651.16     (2) instructional supplies and resources including, but not 
651.17  limited to, curricular materials, maps, individualized 
651.18  instructional materials, test materials, and other related 
651.19  supplies; 
651.20     (3) tuition payments to other service providers for direct 
651.21  instruction or instructional materials; 
651.22     (4) computers, interactive television, and other 
651.23  technologically related equipment used in the direct delivery of 
651.24  instruction; 
651.25     (5) instructional support services including staff 
651.26  development, curriculum development, and other instructional 
651.27  support services; 
651.28     (6) pupil support services including health, counseling, 
651.29  and psychological services; 
651.30     (7) administrative costs that are not to exceed five 
651.31  percent of the operating budget for the year; and 
651.32     (8) district facility operations and maintenance. 
651.33     Sec. 124.  [124D.42] [SUPPORT SERVICES AID.] 
651.34     Subdivision 1.  [SUPPORT SERVICES.] "Support services" 
651.35  means services and programs beyond the core instruction 
651.36  considered essential to allow students to achieve the basic 
652.1   outcomes including, but not limited to, the following: 
652.2      (1) counselors, psychologists, and social workers; 
652.3      (2) services and programs for students needing special 
652.4   education and handicapped children aged zero to three; 
652.5      (3) health care, including early childhood screening; 
652.6      (4) transportation; 
652.7      (5) nutrition programs; 
652.8      (6) libraries and other media and information centers; 
652.9      (7) programs for specialized curricula relating to programs 
652.10  such as violence prevention, AIDS awareness and prevention, and 
652.11  drug abuse prevention; and 
652.12     (8) programs and services for students judged to be at high 
652.13  risk of not completing their education or otherwise having a 
652.14  social or economic problem in excess of other students. 
652.15     Subd. 2.  [DETERMINATION OF AID.] The total amount of 
652.16  support services aid must be determined according to indices for 
652.17  each service recommended by the commissioner after consultations 
652.18  with appropriate state agencies, educators, and other interested 
652.19  persons.  The commissioner must recommend indices and aid 
652.20  amounts to the legislature by February 1 of each odd-numbered 
652.21  year.  The indices must reflect the need for each service based 
652.22  on the economic, geographic, demographic, and other appropriate 
652.23  characteristics of each district. 
652.24     Sec. 125.  [124D.424] [LOCAL DISCRETIONARY REVENUE.] 
652.25     Subdivision 1.  [LOCAL DISCRETIONARY REVENUE.] Local 
652.26  discretionary revenue is available for districts to implement 
652.27  programs to offer outcomes or to cover other district operating 
652.28  expenditures not provided according to sections 124A.697 and 
652.29  124A.70. 
652.30     Subd. 2.  [REVENUE.] A district's local discretionary 
652.31  revenue is equal to the amount authorized according to section 
652.32  124A.03.  Revenue may not exceed zero times the actual pupil 
652.33  units for the year the revenue is attributable. 
652.34     Subd. 3.  [LEVY.] Local discretionary levy is equal to 
652.35  local discretionary revenue times the lesser of one or the ratio 
652.36  of: 
653.1      (1) net tax capacity divided by the number of pupil units 
653.2   for the year the revenue is attributable, divided by 
653.3      (2) the equalizing factor. 
653.4      Subd. 4.  [AID.] Local discretionary aid is equal to local 
653.5   discretionary revenue minus local discretionary levy.  If a 
653.6   district levies less than the authorized amount, the aid must be 
653.7   reduced proportionately. 
653.8      Sec. 126.  [124D.428] [EDUCATION TRUST FUND.] 
653.9      Subdivision 1.  [CREATION.] The commissioner must deposit 
653.10  to the credit of the education trust fund all money available to 
653.11  the credit of the trust.  The commissioner must maintain the 
653.12  trust as a separate fund to be used only to pay money as 
653.13  provided by law to districts or to repay advances made from the 
653.14  general fund, as provided under subdivision 4. 
653.15     Subd. 2.  [APPROPRIATION.] The money to be paid by law from 
653.16  the education trust fund is appropriated annually. 
653.17     Subd. 3.  [ESTIMATES; REDUCTION OF PAYMENTS.] (a) At the 
653.18  beginning of each fiscal year, the commissioner, in consultation 
653.19  with the commissioner of revenue, must estimate for the fiscal 
653.20  year: 
653.21     (1) the amount of revenues to be deposited in the trust 
653.22  fund and other law; and 
653.23     (2) the payments authorized by law to be made out of the 
653.24  trust. 
653.25     (b) If the estimated payments exceed the estimated receipts 
653.26  of the trust fund, the appropriations from the trust to each 
653.27  program are proportionately reduced, unless otherwise provided 
653.28  by law. 
653.29     Subd. 4.  [GENERAL FUND ADVANCE.] If the money in the trust 
653.30  fund is insufficient to make payments on the dates provided by 
653.31  law, but the commissioner estimates receipts for the fiscal year 
653.32  will be sufficient, the commissioner must advance money from the 
653.33  general fund to the trust fund necessary to make the payments.  
653.34  On or before the close of the biennium, the trust must repay the 
653.35  advances with interest, calculated at the rate of earnings on 
653.36  invested treasurer's cash, to the general fund. 
654.1      Sec. 127.  [124D.43] [COMPREHENSIVE ARTS PLANNING PROGRAM.] 
654.2      The Lola and Rudy Perpich Minnesota center for arts 
654.3   education shall prescribe the form and manner of application by 
654.4   one or more school districts to be designated as a site to 
654.5   participate in the comprehensive arts planning program.  Up to 
654.6   30 sites may be selected.  The center shall designate sites in 
654.7   consultation with the Minnesota alliance for arts in education 
654.8   and the Minnesota state arts board.  
654.9      Sec. 128.  [124D.434] [COMPREHENSIVE ARTS PLANNING PROGRAM 
654.10  SITES.] 
654.11     Subdivision 1.  [FUNDING.] Each site shall receive $1,250 
654.12  each year for two years.  If fewer than 30 sites are selected, 
654.13  each site shall receive an additional proportionate share of 
654.14  money appropriated and not used.  Before receiving money for the 
654.15  second year, a long-range plan for arts education must be 
654.16  submitted to the Lola and Rudy Perpich Minnesota center for arts 
654.17  education. 
654.18     Subd. 2.  [CRITERIA.] The center, in consultation with the 
654.19  comprehensive arts planning program state steering committee, 
654.20  must establish criteria for site selection.  Criteria shall 
654.21  include at least the following:  
654.22     (1) a willingness by the district or group of districts to 
654.23  designate a program chair for comprehensive arts planning with 
654.24  sufficient authority to implement the program; 
654.25     (2) a willingness by the district or group of districts to 
654.26  create a committee comprised of school district and community 
654.27  people whose function is to promote comprehensive arts education 
654.28  in the district; 
654.29     (3) commitment on the part of committee members to 
654.30  participate in training offered by the department of children, 
654.31  families, and learning; 
654.32     (4) a commitment of the committee to conduct a needs 
654.33  assessment of arts education; 
654.34     (5) commitment by the committee to evaluate its involvement 
654.35  in the program; 
654.36     (6) a willingness by the district to adopt a long-range 
655.1   plan for arts education in the district; and 
655.2      (7) location of the district or group of districts to 
655.3   assure representation of urban, suburban, and rural districts 
655.4   and distribution of sites throughout the state. 
655.5      Subd. 3.  [PROGRAM ACCOUNTS.] A district receiving funds 
655.6   must maintain a separate account for the receipt and 
655.7   disbursement of all funds relating to the program.  The funds 
655.8   must be spent only for the purpose of arts education programs, 
655.9   including teacher release time. 
655.10     Subd. 4.  [ADDITIONAL FUNDING.] A district receiving funds 
655.11  may receive funds for the program from private sources and from 
655.12  other governmental agencies, including any state or federal 
655.13  funds available for arts education. 
655.14     Sec. 129.  [124D.438] [SCHOOL BUILDING ACCESSIBILITY 
655.15  CAPITAL IMPROVEMENT.] 
655.16     Sections 124C.71 to 124C.73 may be cited as the "school 
655.17  building accessibility capital improvement grant act." 
655.18     Sec. 130.  [124D.44] [APPROVAL; APPLICATION FORMS.] 
655.19     Subdivision 1.  [APPROVAL BY COMMISSIONER.] The 
655.20  commissioner of children, families, and learning may approve or 
655.21  disapprove applications under section 124C.73.  The grant money 
655.22  must be used only to remove architectural barriers from a 
655.23  building or site. 
655.24     Subd. 2.  [APPLICATION FORMS.] The commissioner shall 
655.25  prepare application forms and establish application dates.  
655.26     Subd. 3.  [MATCH.] A district applying for a grant under 
655.27  this section must match the grant with local district funds. 
655.28     Sec. 131.  [124D.444] [GRANT APPLICATION PROCESS.] 
655.29     Subdivision 1.  [QUALIFICATION.] A school district that 
655.30  meets the criteria required under subdivision 2 may apply for a 
655.31  grant in an amount up to 50 percent of the approved costs of 
655.32  removing architectural barriers from a building or site.  A 
655.33  grant may not exceed $150,000 to a recipient district in any 
655.34  fiscal year. 
655.35     Subd. 2.  [PROJECT REVIEW.] The commissioner, in 
655.36  consultation with the Minnesota state council on disability, 
656.1   shall review applications for grants.  A school district must 
656.2   apply by July 1 of each year in order to be considered for a 
656.3   grant. 
656.4      Subd. 3.  [AWARD OF GRANTS.] (a) The commissioner shall 
656.5   examine and consider all applications for grants, and if a 
656.6   district is found not qualified, the commissioner shall promptly 
656.7   notify the district board.  The commissioner shall give first 
656.8   priority to districts that have entered into the cooperation and 
656.9   combination process under sections 122.241 to 122.248, or that 
656.10  have consolidated since January 1, 1987.  The commissioner shall 
656.11  further prioritize grants on the basis of the following:  the 
656.12  district's tax burden, the long-term feasibility of the project, 
656.13  the suitability of the project, and the district's need for the 
656.14  project.  If the total amount of the applications exceeds the 
656.15  amount that is or can be made available, the commissioner shall 
656.16  award grants according to the commissioner's judgment and 
656.17  discretion and based upon a ranking of the projects according to 
656.18  the factors listed in this paragraph.  The commissioner shall 
656.19  promptly certify to each district the amount, if any, of the 
656.20  grant awarded to it. 
656.21     (b) For fiscal year 1994, the commissioner may develop 
656.22  criteria in addition to the factors listed in paragraph (a), in 
656.23  order to award demonstration grants. 
656.24     Subd. 4.  [MATCHING REVENUE.] Upon being awarded a grant 
656.25  under subdivision 3, the board shall determine the need for 
656.26  additional revenue.  If the board determines that the local 
656.27  match cannot be made from existing revenue, the board may levy 
656.28  according to section 124.84. 
656.29     Subd. 5.  [PROJECT BUDGET.] A district that receives a 
656.30  grant must provide the commissioner with the project budget and 
656.31  any other information the commissioner requests. 
656.32     Sec. 132.  [124D.448] [TELECOMMUNICATION ACCESS GRANT AND 
656.33  STATEWIDE COORDINATION.] 
656.34     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] The purpose of 
656.35  developing a statewide school district telecommunications 
656.36  network is to expand the availability of a broad range of 
657.1   courses and degrees to students throughout the state, to share 
657.2   information resources to improve access, quality, and 
657.3   efficiency, to improve learning, and distance cooperative 
657.4   learning opportunities, and to promote the exchange of ideas 
657.5   among students, parents, teachers, media generalists, 
657.6   librarians, and the public.  In addition, through the 
657.7   development of this statewide telecommunications network 
657.8   emphasizing cost-effective, competitive connections, all 
657.9   Minnesotans will benefit by enhancing access to 
657.10  telecommunications technology throughout the state.  Network 
657.11  connections for school districts and public libraries will be 
657.12  coordinated and fully integrated into the existing state 
657.13  telecommunications and interactive television networks to 
657.14  achieve comprehensive and efficient interconnectivity of school 
657.15  districts and libraries to higher education institutions, state 
657.16  agencies, other governmental units, agencies, and institutions 
657.17  throughout Minnesota.  A school district may apply to the 
657.18  commissioner for a grant under subdivision 2, and a regional 
657.19  public library may apply under subdivision 3.  The Minnesota 
657.20  education telecommunication council established in Laws 1995, 
657.21  First Special Session chapter 3, article 12, section 7, shall 
657.22  establish priorities for awarding grants, making grant awards, 
657.23  and being responsible for the coordination of networks. 
657.24     Subd. 2.  [SCHOOL DISTRICT TELECOMMUNICATIONS GRANT.] (a) A 
657.25  school district may apply for a grant under this subdivision 
657.26  to:  (1) establish connections among school districts, and 
657.27  between school districts and the MNet statewide 
657.28  telecommunications network administered by the department of 
657.29  administration under section 16B.465; or (2) if such a 
657.30  connection meeting minimum electronic connectivity standards is 
657.31  already established, enhance telecommunications capacity for a 
657.32  school district.  The minimum standards of capacity are a 56 
657.33  kilobyte data line and 768 kilobyte ITV connection, subject to 
657.34  change based on the recommendations by the Minnesota education 
657.35  telecommunications council.  A district may submit a grant 
657.36  application for interactive television with higher capacity 
658.1   connections in order to maintain multiple simultaneous 
658.2   connections.  To ensure coordination among school districts, a 
658.3   school district must submit its grant application to the council 
658.4   through an organization that coordinates the applications and 
658.5   connections of at least ten school districts or through an 
658.6   existing technology cooperative.  
658.7      (b) The application must, at a minimum, contain information 
658.8   to document for each applicant school district the following: 
658.9      (1) that the proposed connection meets the minimum 
658.10  standards and employs an open network architecture that will 
658.11  ensure interconnectivity and interoperability with other 
658.12  education institutions and libraries; 
658.13     (2) that the proposed connection and system will be 
658.14  connected to MNet through the department of administration under 
658.15  section 16B.465 and that a network service and management 
658.16  agreement is in place; 
658.17     (3) that the proposed connection and system will be 
658.18  connected to the higher education telecommunication network and 
658.19  that a governance agreement has been adopted which includes 
658.20  agreements between the school district system, a higher 
658.21  education regional council, libraries, and coordinating 
658.22  entities; 
658.23     (4) the telecommunication vendor, which may be MNet, 
658.24  selected to provide service from the district to an MNet hub or 
658.25  to a more cost-effective connection point to MNet; and 
658.26     (5) other information, as determined by the commissioner in 
658.27  consultation with the education telecommunications council, to 
658.28  ensure that connections are coordinated, meet state standards 
658.29  and are cost-effective, and that service is provided in an 
658.30  efficient and cost-effective manner. 
658.31     (c) A grant applicant shall obtain a grant proposal for 
658.32  network services from MNet.  If MNet is not selected as the 
658.33  vendor, the application must provide the reasons for choosing an 
658.34  alternative vendor.  A school district may include, in its grant 
658.35  application, telecommunications access for collaboration with 
658.36  nonprofit arts organizations for the purpose of educational 
659.1   programs, or access for a secondary media center that:  (1) is a 
659.2   member of a multitype library system; (2) is open during periods 
659.3   of the year when classroom instruction is occurring; and (3) has 
659.4   licensed school media staff on site. 
659.5      (d) The Minnesota education telecommunications council 
659.6   shall award grants and the funds shall be dispersed by the 
659.7   commissioner.  The highest priority for these grants shall be to 
659.8   bring school districts up to the minimum connectivity standards. 
659.9   A grant to enhance telecommunications capacity beyond the 
659.10  minimum connectivity standards shall be no more than 75 percent 
659.11  of the maximum grant under this subdivision.  Grant applications 
659.12  for minimum connection and enhanced telecommunications capacity 
659.13  grants must be submitted to the commissioner by a coordinating 
659.14  organization including, but not limited to, service cooperatives 
659.15  and education districts.  For the purposes of the grant, a 
659.16  school district may include a charter school under section 
659.17  120.064, or the Faribault academies.  Based on the award made by 
659.18  the council, all grants under this subdivision shall be paid by 
659.19  the commissioner directly to a school district (unless this 
659.20  application requests that the funds be paid to the coordinating 
659.21  agency).  Nonpublic schools as defined in section 237.065, 
659.22  subdivision 2, located within the district may access the 
659.23  network.  The nonpublic school is responsible for actual costs 
659.24  for connection from the school to the access site. 
659.25     (e) Money awarded under this section may be used only for 
659.26  the purposes explicitly stated in the grant application. 
659.27     Subd. 3.  [REGIONAL LIBRARY TELECOMMUNICATION GRANT.] (a) A 
659.28  regional public library system may apply for a telecommunication 
659.29  access grant.  The grant must be used to create or expand the 
659.30  capacity of electronic data access and connect the library 
659.31  system with the MNet statewide telecommunications network 
659.32  administered by the department of administration under section 
659.33  16B.465.  Connections must meet minimum system standards of a 56 
659.34  kilobyte data line and 768 kilobyte ITV connection.  To be 
659.35  eligible for a telecommunications access grant, a regional 
659.36  public library system must:  (1) meet the level of local support 
660.1   required under section 134.34; and (2) be open at least 20 hours 
660.2   per week. 
660.3      (b) Any grant award under this subdivision may not be used 
660.4   to substitute for any existing local funds allocated to provide 
660.5   electronic access, or equipment for library staff or the public, 
660.6   or local funds previously dedicated to other library operations. 
660.7      (c) An application for a regional public library 
660.8   telecommunications access grant must, at a minimum, contain 
660.9   information to document the following: 
660.10     (1) that the connection meets the minimum standards and 
660.11  employs an open network architecture that will ensure 
660.12  interconnectivity and interoperability with other libraries and 
660.13  the educational system; 
660.14     (2) that the connection is being established through the 
660.15  most cost-effective means and that the public library has 
660.16  explored and coordinated connections through school districts or 
660.17  other governmental agencies; 
660.18     (3) that the proposed connection and system will be 
660.19  connected to MNet through the department of administration under 
660.20  section 16B.465 and that a network service and management 
660.21  agreement is in place; 
660.22     (4) that the proposed connection and system will be 
660.23  connected to the higher education and to the school district 
660.24  telecommunication networks subject to a governance agreement 
660.25  with one or more school districts and a higher education 
660.26  regional council specifying how the system will be coordinated; 
660.27     (5) the telecommunication vendor, which may be MNet, 
660.28  selected to provide service from the library to an MNet hub or 
660.29  through a more cost-effective connection point to MNet; and 
660.30     (6) other information, as determined by the commissioner, 
660.31  to ensure that connections are coordinated, meet state 
660.32  standards, are cost-effective, and that service is provided in 
660.33  an efficient and cost-effective manner so that libraries 
660.34  throughout the state are connected in as seamless a manner as 
660.35  technically possible. 
660.36     (d) A grant applicant shall obtain a grant proposal for 
661.1   network services from MNet.  If MNet is not selected as the 
661.2   vendor, the application must provide the reasons for choosing an 
661.3   alternative vendor. 
661.4      Subd. 4.  [AWARD OF GRANTS.] The council shall develop 
661.5   application forms and procedures for school district minimum 
661.6   connectivity grants, enhanced telecommunications grants, and 
661.7   regional library telecommunication access grants.  The council 
661.8   shall select the grant recipient and shall promptly notify any 
661.9   applicant that is found not to be qualified.  The commissioner 
661.10  shall make the grant payments directly to the school district or 
661.11  regional library system.  At the request of the district, the 
661.12  commissioner may make the grant payment directly to the 
661.13  coordinating organization.  If appropriations are insufficient 
661.14  to fund all applications, the commissioner shall first fully 
661.15  fund the minimum connectivity grants.  Unsuccessful applicants 
661.16  may reapply for a grant. 
661.17                             ARTICLE 8 
661.18                            CHAPTER 125 
661.19     Section 1.  Minnesota Statutes 1996, section 125.03, is 
661.20  amended to read: 
661.21     125.03 [TEACHERS, SUPERVISORY AND SUPPORT PERSONNEL, 
661.22  DEFINITIONS, LICENSURE.] 
661.23     Subdivision 1.  [TEACHERS.] The term "teachers" for the 
661.24  purpose of licensure, means all persons employed in a public 
661.25  school or education district or by a SC as members of the 
661.26  instructional, supervisory, and support staff including 
661.27  superintendents, principals, supervisors, secondary vocational 
661.28  and other classroom teachers, librarians, counselors, school 
661.29  psychologists, school nurses, school social workers, 
661.30  audio-visual directors and coordinators, recreation personnel, 
661.31  media generalists, media supervisors, and speech therapists. 
661.32     Subd. 4.  [SUPERVISORY PERSONNEL.] "Supervisory personnel" 
661.33  for the purpose of licensure means superintendents, principals, 
661.34  and professional employees who devote 50 percent or more of 
661.35  their time to administrative or supervisory duties over other 
661.36  personnel, and includes athletic coaches.  
662.1      Subd. 6.  [ASSESSMENT PROFESSIONALS.] When a school board 
662.2   of a school district with 10,000 pupils or more in average daily 
662.3   membership employs a person to administer or interpret 
662.4   individual aptitude, intelligence or personality tests, the 
662.5   person must hold a graduate level degree related to 
662.6   administering and interpreting psychological assessments. 
662.7      Sec. 2.  Minnesota Statutes 1996, section 125.05, 
662.8   subdivision 1, is amended to read: 
662.9      Subdivision 1.  [AUTHORITY TO LICENSE.] (a) The board of 
662.10  teaching shall must license teachers, as defined in section 
662.11  125.03, subdivision 1, except for supervisory personnel, as 
662.12  defined in section 125.03, subdivision 4. 
662.13     (b) The state board of education shall must license 
662.14  supervisory personnel as defined in section 125.03, subdivision 
662.15  4.  
662.16     (c) Licenses under the jurisdiction of the board of 
662.17  teaching and the state board of education must be issued through 
662.18  the licensing section of the department of children, families, 
662.19  and learning. 
662.20     Sec. 3.  Minnesota Statutes 1996, section 125.05, 
662.21  subdivision 1a, is amended to read: 
662.22     Subd. 1a.  [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] 
662.23  (a) The board of teaching shall must issue licenses under its 
662.24  jurisdiction to persons the board finds to be qualified and 
662.25  competent for their respective positions. 
662.26     (b) The board shall must require a person to successfully 
662.27  complete an examination of skills in reading, writing, and 
662.28  mathematics before being granted an initial teaching license to 
662.29  provide direct instruction to pupils in prekindergarten, 
662.30  elementary, secondary, or special education programs.  The board 
662.31  shall must require colleges and universities offering a board 
662.32  approved teacher preparation program to provide remedial 
662.33  assistance that includes a formal diagnostic component to 
662.34  persons enrolled in their institution who did not achieve a 
662.35  qualifying score on the skills examination, including those for 
662.36  whom English is a second language.  The colleges and 
663.1   universities must provide assistance in the specific academic 
663.2   areas of deficiency in which the person did not achieve a 
663.3   qualifying score.  School districts must provide similar, 
663.4   appropriate, and timely remedial assistance that includes a 
663.5   formal diagnostic component and mentoring to those persons 
663.6   employed by the district who completed their teacher education 
663.7   program outside the state of Minnesota, received a one-year 
663.8   license to teach in Minnesota and did not achieve a qualifying 
663.9   score on the skills examination, including those persons for 
663.10  whom English is a second language. 
663.11     (c) A person who has completed an approved teacher 
663.12  preparation program and obtained a one-year license to teach, 
663.13  but has not successfully completed the skills examination, may 
663.14  renew the one-year license for two additional one-year periods.  
663.15  Each renewal of the one-year license is contingent upon the 
663.16  licensee: 
663.17     (1) providing evidence of participating in an approved 
663.18  remedial assistance program provided by a school district or 
663.19  post-secondary institution that includes a formal diagnostic 
663.20  component in the specific areas in which the licensee did not 
663.21  obtain qualifying scores; and 
663.22     (2) attempting to successfully complete the skills 
663.23  examination during the period of each one-year license. 
663.24     (d) The board of teaching shall must grant continuing 
663.25  licenses only to those persons who have met board criteria for 
663.26  granting a continuing license, which includes successfully 
663.27  completing the skills examination in reading, writing, and 
663.28  mathematics. 
663.29     (e) All colleges and universities approved by the board of 
663.30  teaching to prepare persons for teacher licensure shall must 
663.31  include in their teacher preparation programs a common core of 
663.32  teaching knowledge and skills to be acquired by all persons 
663.33  recommended for teacher licensure.  This common core shall meet 
663.34  the standards developed by the interstate new teacher assessment 
663.35  and support consortium in its 1992 "model standards for 
663.36  beginning teacher licensing and development."  Amendments to 
664.1   standards adopted under this paragraph are covered by chapter 14.
664.2      Sec. 4.  Minnesota Statutes 1996, section 125.05, 
664.3   subdivision 1c, is amended to read: 
664.4      Subd. 1c.  [SUPERVISORY AND COACH QUALIFICATIONS.] The 
664.5   state board of education shall must issue licenses under its 
664.6   jurisdiction to persons the state board finds to be qualified 
664.7   and competent for their respective positions under the rules it 
664.8   adopts. 
664.9      Sec. 5.  Minnesota Statutes 1996, section 125.05, 
664.10  subdivision 6, is amended to read: 
664.11     Subd. 6.  [LIMITED PROVISIONAL LICENSES.] The board of 
664.12  teaching may grant provisional licenses, which shall be valid 
664.13  for two years, in fields in which licenses were not issued 
664.14  previously or in fields in which a shortage of licensed teachers 
664.15  exists.  A shortage shall be is defined as a lack of or an 
664.16  inadequate supply of licensed personnel within a given licensure 
664.17  area in a school district that has notified the board of 
664.18  teaching of the shortage and has applied to the board of 
664.19  teaching for provisional licenses for that district's licensed 
664.20  staff. 
664.21     Sec. 6.  Minnesota Statutes 1996, section 125.05, 
664.22  subdivision 8, is amended to read: 
664.23     Subd. 8.  [BACKGROUND CHECKS.] (a) The board of teaching 
664.24  and the state board of education shall must request a criminal 
664.25  history background check from the superintendent of the bureau 
664.26  of criminal apprehension on all applicants for initial licenses 
664.27  under their jurisdiction.  An application for a license under 
664.28  this section must be accompanied by: 
664.29     (1) an executed criminal history consent form, including 
664.30  fingerprints; and 
664.31     (2) a money order or cashier's check payable to the bureau 
664.32  of criminal apprehension for the fee for conducting the criminal 
664.33  history background check. 
664.34     (b) The superintendent of the bureau of criminal 
664.35  apprehension shall perform the background check required under 
664.36  paragraph (a) by retrieving criminal history data maintained in 
665.1   the criminal justice information system computers and shall also 
665.2   conduct a search of the national criminal records repository, 
665.3   including the criminal justice data communications network.  The 
665.4   superintendent is authorized to exchange fingerprints with the 
665.5   Federal Bureau of Investigation for purposes of the criminal 
665.6   history check.  The superintendent shall recover the cost to the 
665.7   bureau of a background check through the fee charged to the 
665.8   applicant under paragraph (a). 
665.9      (c) The board of teaching or the state board of education 
665.10  may issue a license pending completion of a background check 
665.11  under this subdivision, but shall must notify the individual 
665.12  that the individual's license may be revoked based on the result 
665.13  of the background check. 
665.14     Sec. 7.  [125.052] [TEACHER RULE VARIANCES.] 
665.15     Notwithstanding any law to the contrary, and only upon 
665.16  receiving the agreement of the state board of teaching, the 
665.17  state board of education may grant a variance to its rules 
665.18  governing licensure of teachers for those teachers licensed by 
665.19  the board of teaching.  The state board may grant a variance, 
665.20  without the agreement of the board of teaching, to its rules 
665.21  governing licensure of teachers for those teachers it licenses. 
665.22     Sec. 8.  [125.056] [NONLICENSED COMMUNITY EXPERTS; 
665.23  VARIANCE.] 
665.24     Subdivision 1.  [AUTHORIZATION.] Notwithstanding any law or 
665.25  state board of education rule to the contrary, the board of 
665.26  teaching may allow school districts to hire nonlicensed 
665.27  community experts to teach in the public schools on a limited 
665.28  basis according to this section. 
665.29     Subd. 2.  [APPLICATIONS; CRITERIA.] A district must apply 
665.30  to the board of teaching for approval to hire nonlicensed 
665.31  teaching personnel from the community.  In approving or 
665.32  disapproving the district's application for each community 
665.33  expert, the must shall consider: 
665.34     (1) the qualifications of the community person whom the 
665.35  district proposes to employ; 
665.36     (2) the reasons for the district's need for a variance from 
666.1   the teacher licensure requirements; 
666.2      (3) the district's efforts to obtain licensed teachers, who 
666.3   are acceptable to the school board, for the particular course or 
666.4   subject area; 
666.5      (4) the amount of teaching time for which the community 
666.6   expert would be hired; 
666.7      (5) the extent to which the district is utilizing other 
666.8   nonlicensed community experts under this section; 
666.9      (6) the nature of the community expert's proposed teaching 
666.10  responsibility; and 
666.11     (7) the proposed level of compensation to the community 
666.12  expert. 
666.13     Subd. 3.  [APPROVAL OF PLAN.] The board of teaching must 
666.14  approve or disapprove an application within 60 days of receiving 
666.15  it from a school district. 
666.16     Sec. 9.  Minnesota Statutes 1996, section 125.06, is 
666.17  amended to read: 
666.18     125.06 [APPLICANTS TRAINED IN OTHER STATES.] 
666.19     When a license to teach is authorized to be issued to any 
666.20  holder of a diploma or a degree of a Minnesota state university, 
666.21  or of the University of Minnesota, or of a liberal arts 
666.22  university, or a technical training institution, such license 
666.23  may also, in the discretion of the board of teaching or the 
666.24  state board of education, whichever has jurisdiction, be issued 
666.25  to any holder of a diploma or a degree of a teacher training 
666.26  institution of equivalent rank and standing of any other state,. 
666.27  The diploma or degree must be granted by virtue of the 
666.28  completion of a course in teacher preparation essentially 
666.29  equivalent in content to that required by such Minnesota state 
666.30  university or the University of Minnesota or a liberal arts 
666.31  university in Minnesota or a technical training institution as 
666.32  preliminary to the granting of a diploma or a degree of the same 
666.33  rank and class. 
666.34     Sec. 10.  Minnesota Statutes 1996, section 125.09, is 
666.35  amended to read: 
666.36     125.09 [SUSPENSION OR REVOCATION OF LICENSES.] 
667.1      Subdivision 1.  [GROUNDS FOR REVOCATION, SUSPENSION, OR 
667.2   DENIAL.] The board of teaching or the state board of education, 
667.3   whichever has jurisdiction over a teacher's licensure, may, on 
667.4   the written complaint of the school board employing a teacher, a 
667.5   teacher organization, or any other interested person, which 
667.6   complaint shall specify the nature and character of the charges, 
667.7   refuse to issue, refuse to renew, suspend, or revoke a teacher's 
667.8   license to teach for any of the following causes: 
667.9      (1) Immoral character or conduct; 
667.10     (2) Failure, without justifiable cause, to teach for the 
667.11  term of the teacher's contract; 
667.12     (3) Gross inefficiency or willful neglect of duty; or 
667.13     (4) Failure to meet licensure requirements; or 
667.14     (5) Fraud or misrepresentation in obtaining a license. 
667.15     The written complaint must specify the nature and character 
667.16  of the charges.  For purposes of this subdivision, the board of 
667.17  teaching is delegated the authority to suspend or revoke 
667.18  coaching licenses under the jurisdiction of the state board of 
667.19  education. 
667.20     Subd. 4.  [MANDATORY REPORTING.] A school board shall must 
667.21  report to the board of teaching, the state board of education, 
667.22  or the board of trustees of the Minnesota state colleges and 
667.23  universities, whichever has jurisdiction over the teacher's 
667.24  license, when its teacher is discharged or resigns from 
667.25  employment after a charge is filed with the school board under 
667.26  section 125.17, subdivisions 4, clauses (1), (2), and (3), and 
667.27  5, or after charges are filed that are ground for discharge 
667.28  under section 125.12, subdivision 8, clauses (a), (b), (c), (d), 
667.29  and (e), or when a teacher is suspended or resigns while an 
667.30  investigation is pending under section 125.12, subdivision 8, 
667.31  clauses (a), (b), (c), (d), and (e); 125.17, subdivisions 4, 
667.32  clauses (1), (2), and (3), and 5; or 626.556.  The report must 
667.33  be made to the board within ten days after the discharge, 
667.34  suspension, or resignation has occurred.  The board to which the 
667.35  report is made shall must investigate the report for violation 
667.36  of subdivision 1 and the reporting school board shall must 
668.1   cooperate in the investigation.  Notwithstanding any provision 
668.2   in chapter 13 or any law to the contrary, upon written request 
668.3   from the licensing board having jurisdiction over the teacher's 
668.4   license, a school board or school superintendent shall provide 
668.5   the licensing board with information about the teacher from the 
668.6   school district's files, any termination or disciplinary 
668.7   proceeding, any settlement or compromise, or any investigative 
668.8   file.  Upon written request from the appropriate licensing 
668.9   board, a school board or school superintendent may, at the 
668.10  discretion of the school board or school superintendent, solicit 
668.11  the written consent of a student and the student's parent to 
668.12  provide the licensing board with information that may aid the 
668.13  licensing board in its investigation and license proceedings.  
668.14  The licensing board's request need not identify a student or 
668.15  parent by name.  The consent of the student and the student's 
668.16  parent must meet the requirements of chapter 13 and Code of 
668.17  Federal Regulations, title 34, section 99.30.  The licensing 
668.18  board may provide a consent form to the school district.  Any 
668.19  data transmitted to any board under this section shall be is 
668.20  private data under section 13.02, subdivision 12, 
668.21  notwithstanding any other classification of the data when it was 
668.22  in the possession of any other agency. 
668.23     The licensing board to which a report is made shall must 
668.24  transmit to the attorney general's office any record or data it 
668.25  receives under this subdivision for the sole purpose of having 
668.26  the attorney general's office assist that board in its 
668.27  investigation.  When the attorney general's office has informed 
668.28  an employee of the appropriate licensing board in writing that 
668.29  grounds exist to suspend or revoke a teacher's license to teach, 
668.30  that licensing board must consider suspending or revoking or 
668.31  decline to suspend or revoke the teacher's license within 45 
668.32  days of receiving a stipulation executed by the teacher under 
668.33  investigation or a recommendation from an administrative law 
668.34  judge that disciplinary action be taken. 
668.35     Subd. 5.  [IMMUNITY FROM LIABILITY.] A school board, its 
668.36  members in their official capacity, and employees of the school 
669.1   district run by the board are immune from civil or criminal 
669.2   liability for reporting or cooperating as required under 
669.3   subdivision 4, if their actions required under subdivision 4 are 
669.4   done in good faith and with due care. 
669.5      Sec. 11.  Minnesota Statutes 1996, section 125.11, is 
669.6   amended to read: 
669.7      125.11 [RECORDING OF LICENSES; DISTRICT SUPERINTENDENT.] 
669.8      No person shall be accounted a qualified teacher until such 
669.9   the person has filed for record with the district superintendent 
669.10  where such the person intends to teach a license, or certified 
669.11  copy thereof of a license, authorizing such the person to teach 
669.12  school in such the district school system. 
669.13     Sec. 12.  Minnesota Statutes 1996, section 125.12, 
669.14  subdivision 1a, is amended to read: 
669.15     Subd. 1a.  [NONPROVISIONAL LICENSE DEFINED.] For purposes 
669.16  of this section, "nonprovisional license" shall mean means an 
669.17  entrance, continuing, or life license.  
669.18     Sec. 13.  Minnesota Statutes 1996, section 125.12, 
669.19  subdivision 2, is amended to read: 
669.20     Subd. 2.  [HIRING, DISMISSING.] School boards shall must 
669.21  hire or dismiss teachers at duly called meetings.  Where a 
669.22  husband and wife, brother and sister, or two brothers or 
669.23  sisters, constitute a quorum, no contract employing a teacher 
669.24  shall be made or authorized except upon the unanimous vote of 
669.25  the full board.  No A teacher related by blood or marriage, 
669.26  within the fourth degree, computed by the civil law, to a board 
669.27  member shall not be employed except by a unanimous vote of the 
669.28  full board.  The initial employment of the teacher in the 
669.29  district shall must be by written contract, signed by the 
669.30  teacher and by the chair and clerk.  All subsequent employment 
669.31  of the teacher in the district shall must be by written 
669.32  contract, signed by the teacher and by the chair and clerk, 
669.33  except where there is a master agreement covering the employment 
669.34  of the teacher.  Contracts for teaching or supervision of 
669.35  teaching can be made only with qualified teachers.  No A teacher 
669.36  shall not be required to reside within the employing school 
670.1   district as a condition to teaching employment or continued 
670.2   teaching employment. 
670.3      Sec. 14.  Minnesota Statutes 1996, section 125.12, 
670.4   subdivision 2a, is amended to read: 
670.5      Subd. 2a.  [EMPLOYMENT IN SUPERVISORY POSITIONS.] 
670.6   Notwithstanding other law, a teacher, as defined in section 
670.7   179A.03, does not have a right to employment in a district as an 
670.8   assistant superintendent, as a principal defined in section 
670.9   179A.03, as a confidential or supervisory employee defined in 
670.10  section 179A.03, or in a position that is a promotion from the 
670.11  position currently held, based on seniority, seniority date, or 
670.12  order of employment by the district; provided that.  This 
670.13  provision shall not alter the reinstatement rights of an 
670.14  individual who is placed on leave from an assistant 
670.15  superintendent, principal or assistant principal, or supervisory 
670.16  or confidential employee position pursuant to this chapter.  
670.17     Sec. 15.  Minnesota Statutes 1996, section 125.12, 
670.18  subdivision 3, is amended to read: 
670.19     Subd. 3.  [PROBATIONARY PERIOD.] The first three 
670.20  consecutive years of a teacher's first teaching experience in 
670.21  Minnesota in a single school district shall be is deemed to be a 
670.22  probationary period of employment, and after completion thereof, 
670.23  the probationary period in each school district in which the 
670.24  teacher is thereafter employed shall be one year.  The school 
670.25  board shall must adopt a plan for written evaluation of teachers 
670.26  during the probationary period.  Evaluation shall must occur at 
670.27  least three times each year for a teacher performing services on 
670.28  120 or more school days, at least two times each year for a 
670.29  teacher performing services on 60 to 119 school days, and at 
670.30  least one time each year for a teacher performing services on 
670.31  fewer than 60 school days.  Days devoted to parent-teacher 
670.32  conferences, teachers' workshops, and other staff development 
670.33  opportunities and days on which a teacher is absent from 
670.34  school shall must not be included in determining the number of 
670.35  school days on which a teacher performs services.  During the 
670.36  probationary period any annual contract with any teacher may or 
671.1   may not be renewed as the school board shall see fit; 
671.2   provided,.  However, that the school board shall must give 
671.3   any such teacher whose contract it declines to renew for the 
671.4   following school year written notice to that effect before June 
671.5   1.  If the teacher requests reasons for any nonrenewal of a 
671.6   teaching contract, the school board shall must give the teacher 
671.7   its reason in writing, including a statement that appropriate 
671.8   supervision was furnished describing the nature and the extent 
671.9   of such supervision furnished the teacher during the employment 
671.10  by the board, within ten days after receiving such request.  The 
671.11  school board may, after a hearing held upon due notice, 
671.12  discharge a teacher during the probationary period for cause, 
671.13  effective immediately, under section 123.35, subdivision 5. 
671.14     Sec. 16.  Minnesota Statutes 1996, section 125.12, 
671.15  subdivision 3b, is amended to read: 
671.16     Subd. 3b.  [PEER REVIEW FOR PROBATIONARY TEACHERS.] A 
671.17  school board and an exclusive representative of the teachers in 
671.18  the district shall must develop a probationary teacher peer 
671.19  review process through joint agreement. 
671.20     Sec. 17.  Minnesota Statutes 1996, section 125.12, 
671.21  subdivision 4, is amended to read: 
671.22     Subd. 4.  [TERMINATION OF CONTRACT AFTER PROBATIONARY 
671.23  PERIOD.] A teacher who has completed a probationary period in 
671.24  any school district, and who has not been discharged or advised 
671.25  of a refusal to renew the teacher's contract pursuant to 
671.26  subdivision 3, shall have a continuing contract with such 
671.27  district.  Thereafter, the teacher's contract shall must remain 
671.28  in full force and effect, except as modified by mutual consent 
671.29  of the board and the teacher, until terminated by a majority 
671.30  roll call vote of the full membership of the board prior to 
671.31  April 1 upon one of the grounds specified in subdivision 6 or 
671.32  prior to June 1 upon one of the grounds specified in subdivision 
671.33  6a or 6b, or until the teacher is discharged pursuant to 
671.34  subdivision 8, or by the written resignation of the teacher 
671.35  submitted prior to April 1; provided, however, that.  If an 
671.36  agreement as to the terms and conditions of employment for the 
672.1   succeeding school year has not been adopted pursuant to the 
672.2   provisions of sections 179A.01 to 179A.25 prior to March 1, the 
672.3   teacher's right of resignation shall be is extended to the 30th 
672.4   calendar day following the adoption of said contract in 
672.5   compliance with section 179A.20, subdivision 5.  Such written 
672.6   resignation by the teacher shall be is effective as of June 30 
672.7   if submitted prior to that date and the teachers' right of 
672.8   resignation for the school year then beginning shall cease on 
672.9   July 15.  Before a teacher's contract is terminated by the 
672.10  board, the board shall must notify the teacher in writing and 
672.11  state its ground for the proposed termination in reasonable 
672.12  detail together with a statement that the teacher may make a 
672.13  written request for a hearing before the board within 14 days 
672.14  after receipt of such notification.  If the grounds are those 
672.15  specified in subdivision 6 or 8, the notice must also state a 
672.16  teacher may request arbitration under subdivision 9a.  Within 14 
672.17  days after receipt of this notification the teacher may make a 
672.18  written request for a hearing before the board or an arbitrator 
672.19  and it shall be granted upon reasonable notice to the teacher of 
672.20  the date set for hearing, before final action is taken.  If no 
672.21  hearing is requested within such period, it shall be deemed 
672.22  acquiescence by the teacher to the board's action.  Such 
672.23  termination shall take effect at the close of the school year in 
672.24  which the contract is terminated in the manner aforesaid.  Such 
672.25  contract may be terminated at any time by mutual consent of the 
672.26  board and the teacher and this section shall does not affect the 
672.27  powers of a board to suspend, discharge, or demote a teacher 
672.28  under and pursuant to other provisions of law. 
672.29     Sec. 18.  Minnesota Statutes 1996, section 125.12, 
672.30  subdivision 6, is amended to read: 
672.31     Subd. 6.  [GROUNDS FOR TERMINATION.] A continuing contract 
672.32  may be terminated, effective at the close of the school year, 
672.33  upon any of the following grounds: 
672.34     (a) Inefficiency; 
672.35     (b) Neglect of duty, or persistent violation of school 
672.36  laws, rules, regulations, or directives; 
673.1      (c) Conduct unbecoming a teacher which materially impairs 
673.2   the teacher's educational effectiveness; 
673.3      (d) Other good and sufficient grounds rendering the teacher 
673.4   unfit to perform the teacher's duties. 
673.5      A contract shall must not be terminated upon one of the 
673.6   grounds specified in clause (a), (b), (c), or (d), unless the 
673.7   teacher shall have failed fails to correct the deficiency after 
673.8   being given written notice of the specific items of complaint 
673.9   and reasonable time within which to remedy them. 
673.10     Sec. 19.  Minnesota Statutes 1996, section 125.12, 
673.11  subdivision 6a, is amended to read: 
673.12     Subd. 6a.  [NEGOTIATED UNREQUESTED LEAVE OF ABSENCE.] The 
673.13  school board and the exclusive bargaining representative of the 
673.14  teachers may negotiate a plan providing for unrequested leave of 
673.15  absence without pay or fringe benefits for as many teachers as 
673.16  may be necessary because of discontinuance of position, lack of 
673.17  pupils, financial limitations, or merger of classes caused by 
673.18  consolidation of districts.  Failing to successfully negotiate 
673.19  such a plan, the provisions of subdivision 6b shall apply.  The 
673.20  negotiated plan shall must not include provisions which would 
673.21  result in the exercise of seniority by a teacher holding a 
673.22  provisional license, other than a vocational education license, 
673.23  contrary to the provisions of subdivision 6b, clause (c), or the 
673.24  reinstatement of a teacher holding a provisional license, other 
673.25  than a vocational education license, contrary to the provisions 
673.26  of subdivision 6b, clause (e).  The provisions of section 
673.27  179A.16 shall do not apply for the purposes of this subdivision. 
673.28     Sec. 20.  Minnesota Statutes 1996, section 125.12, 
673.29  subdivision 6b, is amended to read: 
673.30     Subd. 6b.  [UNREQUESTED LEAVE OF ABSENCE.] The school board 
673.31  may place on unrequested leave of absence, without pay or fringe 
673.32  benefits, as many teachers as may be necessary because of 
673.33  discontinuance of position, lack of pupils, financial 
673.34  limitations, or merger of classes caused by consolidation of 
673.35  districts.  The unrequested leave shall be is effective at the 
673.36  close of the school year.  In placing teachers on unrequested 
674.1   leave, the board shall be is governed by the following 
674.2   provisions: 
674.3      (a) The board may place probationary teachers on 
674.4   unrequested leave first in the inverse order of their 
674.5   employment.  No A teacher who has acquired continuing contract 
674.6   rights shall must not be placed on unrequested leave of absence 
674.7   while probationary teachers are retained in positions for which 
674.8   the teacher who has acquired continuing contract rights is 
674.9   licensed; 
674.10     (b) Teachers who have acquired continuing contract rights 
674.11  shall be placed on unrequested leave of absence in fields in 
674.12  which they are licensed in the inverse order in which they were 
674.13  employed by the school district.  In the case of equal 
674.14  seniority, the order in which teachers who have acquired 
674.15  continuing contract rights shall be placed on unrequested leave 
674.16  of absence in fields in which they are licensed shall be is 
674.17  negotiable; 
674.18     (c) Notwithstanding the provisions of clause (b), no a 
674.19  teacher shall be is not entitled to exercise any seniority when 
674.20  that exercise results in that teacher being retained by the 
674.21  district in a field for which the teacher holds only a 
674.22  provisional license, as defined by the board of teaching, unless 
674.23  that exercise of seniority results in the placement on 
674.24  unrequested leave of absence of another teacher who also holds a 
674.25  provisional license in the same field.  The provisions of this 
674.26  clause shall do not apply to vocational education licenses; 
674.27     (d) Notwithstanding clauses (a), (b) and (c), if the 
674.28  placing of a probationary teacher on unrequested leave before a 
674.29  teacher who has acquired continuing rights, the placing of a 
674.30  teacher who has acquired continuing contract rights on 
674.31  unrequested leave before another teacher who has acquired 
674.32  continuing contract rights but who has greater seniority, or the 
674.33  restriction imposed by the provisions of clause (c) would place 
674.34  the district in violation of its affirmative action program, the 
674.35  district may retain the probationary teacher, the teacher with 
674.36  less seniority, or the provisionally licensed teacher; 
675.1      (e) Teachers placed on unrequested leave of absence shall 
675.2   must be reinstated to the positions from which they have been 
675.3   given leaves of absence or, if not available, to other available 
675.4   positions in the school district in fields in which they are 
675.5   licensed.  Reinstatement shall must be in the inverse order of 
675.6   placement on leave of absence.  No A teacher shall must not be 
675.7   reinstated to a position in a field in which the teacher holds 
675.8   only a provisional license, other than a vocational education 
675.9   license, while another teacher who holds a nonprovisional 
675.10  license in the same field remains on unrequested leave.  The 
675.11  order of reinstatement of teachers who have equal seniority and 
675.12  who are placed on unrequested leave in the same school 
675.13  year shall be is negotiable; 
675.14     (f) No Appointment of a new teacher shall must not be made 
675.15  while there is available, on unrequested leave, a teacher who is 
675.16  properly licensed to fill such vacancy, unless the teacher fails 
675.17  to advise the school board within 30 days of the date of 
675.18  notification that a position is available to that teacher who 
675.19  may return to employment and assume the duties of the position 
675.20  to which appointed on a future date determined by the board; 
675.21     (g) A teacher placed on unrequested leave of absence may 
675.22  engage in teaching or any other occupation during the period of 
675.23  this leave; 
675.24     (h) The unrequested leave of absence shall must not impair 
675.25  the continuing contract rights of a teacher or result in a loss 
675.26  of credit for previous years of service; 
675.27     (i) The unrequested leave of absence of a teacher who is 
675.28  placed on unrequested leave of absence and who is not reinstated 
675.29  shall continue for a period of five years, after which the right 
675.30  to reinstatement shall terminate; provided.  The teacher's right 
675.31  to reinstatement shall also terminate if the teacher fails to 
675.32  file with the board by April 1 of any year a written statement 
675.33  requesting reinstatement; 
675.34     (j) The same provisions applicable to terminations of 
675.35  probationary or continuing contracts in subdivisions 3 and 4 
675.36  shall must apply to placement on unrequested leave of absence; 
676.1      (k) Nothing in this subdivision shall be construed to 
676.2   impair the rights of teachers placed on unrequested leave of 
676.3   absence to receive reemployment insurance if otherwise eligible. 
676.4      Sec. 21.  Minnesota Statutes 1996, section 125.12, 
676.5   subdivision 7, is amended to read: 
676.6      Subd. 7.  [SUSPENSION AND LEAVE OF ABSENCE FOR HEALTH 
676.7   REASONS.] Affliction with active tuberculosis or other 
676.8   communicable disease, mental illness, drug or alcoholic 
676.9   addiction, or other serious incapacity shall be grounds for 
676.10  temporary suspension and leave of absence while the teacher is 
676.11  suffering from such disability.  Unless the teacher consents, 
676.12  such action shall must be taken only upon evidence that 
676.13  suspension is required from a physician who has examined the 
676.14  teacher.  The physician shall must be competent in the field 
676.15  involved and shall must be selected by the teacher from a list 
676.16  of three provided by the school board, and the examination shall 
676.17  must be at the expense of the school district.  A copy of the 
676.18  report of the physician shall be furnished the teacher upon 
676.19  request.  If the teacher fails to submit to the examination 
676.20  within the prescribed time, the board may discharge the teacher, 
676.21  effective immediately.  In the event of mental illness, if the 
676.22  teacher submits to such an examination and the examining 
676.23  physician's or psychiatrist's statement is unacceptable to the 
676.24  teacher or the board, a panel of three physicians or 
676.25  psychiatrists shall must be selected to examine the teacher at 
676.26  the board's expense.  The board and the teacher shall each 
676.27  select a member of this panel, and these two members shall 
676.28  select a third member.  The panel shall must examine the teacher 
676.29  and submit a statement of its findings and conclusions to the 
676.30  board.  Upon receipt and consideration of the statement from the 
676.31  panel the board may suspend the teacher.  The board shall must 
676.32  notify the teacher in writing of such suspension and the reasons 
676.33  therefor.  During the leave of absence, the district must pay 
676.34  the teacher shall be paid sick leave benefits by the district up 
676.35  to the amount of unused accumulated sick leave, and after it is 
676.36  exhausted, the district may in its discretion pay additional 
677.1   benefits.  The teacher shall must be reinstated to the teacher's 
677.2   position upon evidence from such a physician of sufficient 
677.3   recovery to be capable of resuming performance of duties in a 
677.4   proper manner.  In the event that the teacher does not qualify 
677.5   for reinstatement within 12 months after the date of suspension, 
677.6   the continuing disability may be a ground for discharge under 
677.7   subdivision 8. 
677.8      Sec. 22.  Minnesota Statutes 1996, section 125.12, 
677.9   subdivision 8, is amended to read: 
677.10     Subd. 8.  [IMMEDIATE DISCHARGE.] A school board may 
677.11  discharge a continuing-contract teacher, effective immediately, 
677.12  upon any of the following grounds: 
677.13     (a) Immoral conduct, insubordination, or conviction of a 
677.14  felony; 
677.15     (b) Conduct unbecoming a teacher which requires the 
677.16  immediate removal of the teacher from classroom or other duties; 
677.17     (c) Failure without justifiable cause to teach without 
677.18  first securing the written release of the school board; 
677.19     (d) Gross inefficiency which the teacher has failed to 
677.20  correct after reasonable written notice; 
677.21     (e) Willful neglect of duty; or 
677.22     (f) Continuing physical or mental disability subsequent to 
677.23  a 12 months leave of absence and inability to qualify for 
677.24  reinstatement in accordance with subdivision 7. 
677.25     For purposes of this subdivision, conduct unbecoming a 
677.26  teacher includes an unfair discriminatory practice described in 
677.27  section 363.03, subdivision 5. 
677.28     Prior to discharging a teacher the board shall must notify 
677.29  the teacher in writing and state its ground for the proposed 
677.30  discharge in reasonable detail.  Within ten days after receipt 
677.31  of this notification the teacher may make a written request for 
677.32  a hearing before the board and it shall be granted before final 
677.33  action is taken.  The board may, however, suspend a teacher with 
677.34  pay pending the conclusion of such hearing and determination of 
677.35  the issues raised therein in the hearing after charges have been 
677.36  filed which constitute ground for discharge. 
678.1      Sec. 23.  Minnesota Statutes 1996, section 125.12, 
678.2   subdivision 9, is amended to read: 
678.3      Subd. 9.  [HEARING PROCEDURES.] Any hearing held pursuant 
678.4   to this section shall must be held upon appropriate and timely 
678.5   notice to the teacher, and any hearing held pursuant to 
678.6   subdivision 6 or 8 shall must be private or public at the 
678.7   discretion of the teacher.  A hearing held pursuant to 
678.8   subdivision 6b shall must be public and may be consolidated by 
678.9   the school board.  At the hearing, the board and the teacher may 
678.10  each be represented by counsel at each party's own expense, and 
678.11  such counsel may examine and cross-examine witnesses and present 
678.12  arguments.  The board shall must first present evidence to 
678.13  sustain the grounds for termination or discharge and then 
678.14  receive evidence presented by the teacher.  Each party may then 
678.15  present rebuttal evidence.  Dismissal of the teacher shall must 
678.16  be based upon substantial and competent evidence in the record.  
678.17  All witnesses shall be sworn upon oath administered by the 
678.18  presiding officer of the board.  The clerk of the board shall 
678.19  issue subpoenas for witnesses or the production of records 
678.20  pertinent to the grounds upon the request of either the board or 
678.21  the teacher.  The board shall must employ a court reporter to 
678.22  record the proceedings at the hearing, and either party may 
678.23  obtain a transcript thereof of the hearing at its own expense. 
678.24     Sec. 24.  Minnesota Statutes 1996, section 125.12, 
678.25  subdivision 9a, is amended to read: 
678.26     Subd. 9a.  [HEARING AND DETERMINATION BY ARBITRATOR.] A 
678.27  teacher whose termination is proposed under subdivision 4 on 
678.28  grounds specified in subdivision 6, or whose discharge is 
678.29  proposed under subdivision 8, may elect a hearing before an 
678.30  arbitrator instead of the school board.  The hearing is governed 
678.31  by this subdivision.  
678.32     (a) The teacher must make a written request for a hearing 
678.33  before an arbitrator within 14 days after receiving notification 
678.34  of proposed termination on grounds specified in subdivision 6 or 
678.35  within ten days of receiving notification of proposed discharge 
678.36  under subdivision 8.  If a request for a hearing does not 
679.1   specify that the hearing be before an arbitrator, it shall be is 
679.2   considered to be a request for a hearing before the school board.
679.3      (b) If the teacher and the school board are unable to 
679.4   mutually agree on an arbitrator, the school board shall must 
679.5   request from the bureau of mediation services a list of five 
679.6   persons to serve as an arbitrator.  If the matter to be heard is 
679.7   a proposed termination on grounds specified in subdivision 6, 
679.8   arbitrators on the list must be available to hear the matter and 
679.9   make a decision within a time frame that will allow the school 
679.10  board to comply with all statutory timelines relating to 
679.11  termination.  If the teacher and the school board are unable to 
679.12  mutually agree on an arbitrator from the list provided, the 
679.13  parties shall alternately strike names from the list until the 
679.14  name of one arbitrator remains.  The person remaining after the 
679.15  striking procedure shall must be the arbitrator.  If the parties 
679.16  are unable to agree on who shall strike the first name, the 
679.17  question must be decided by a flip of a coin.  The teacher and 
679.18  the school board shall must share equally the costs and fees of 
679.19  the arbitrator. 
679.20     (c) The arbitrator shall determine, by a preponderance of 
679.21  the evidence, whether the grounds for termination or discharge 
679.22  specified in subdivision 6 or 8 exist to support the proposed 
679.23  termination or discharge.  A lesser penalty than termination or 
679.24  discharge may be imposed by the arbitrator only to the extent 
679.25  that either party proposes such lesser penalty in the 
679.26  proceeding.  In making the determination, the arbitration 
679.27  proceeding is governed by sections 572.11 to 572.17 and by the 
679.28  collective bargaining agreement applicable to the teacher.  
679.29     (d) An arbitration hearing conducted under this subdivision 
679.30  is a meeting for preliminary consideration of allegations or 
679.31  charges within the meaning of section 471.705, subdivision 1d, 
679.32  clause (c), and shall must be closed, unless the teacher 
679.33  requests it to be open. 
679.34     (e) The arbitrator's award is final and binding on the 
679.35  parties, subject to sections 572.18 to 572.26. 
679.36     Sec. 25.  Minnesota Statutes 1996, section 125.12, 
680.1   subdivision 10, is amended to read: 
680.2      Subd. 10.  [DECISION.] After the hearing, the board 
680.3   shall must issue a written decision and order.  If the board 
680.4   orders termination of a continuing contract or discharge of a 
680.5   teacher, its decision shall must include findings of fact based 
680.6   upon competent evidence in the record and shall must be served 
680.7   on the teacher, accompanied by an order of termination or 
680.8   discharge, prior to April 1 in the case of a contract 
680.9   termination for grounds specified in subdivision 6, prior to 
680.10  June 1 for grounds specified in subdivision 6a or 6b, or within 
680.11  ten days after conclusion of the hearing in the case of a 
680.12  discharge.  If the decision of the board or of a reviewing court 
680.13  is favorable to the teacher, the proceedings shall must be 
680.14  dismissed and the decision entered in the board minutes, and all 
680.15  references to such proceedings shall must be excluded from the 
680.16  teacher's record file. 
680.17     Sec. 26.  Minnesota Statutes 1996, section 125.12, 
680.18  subdivision 11, is amended to read: 
680.19     Subd. 11.  [JUDICIAL REVIEW.] The pendency of judicial 
680.20  proceedings shall must not be ground for postponement of the 
680.21  effective date of the school board's order, but if judicial 
680.22  review eventuates in reinstatement of the teacher, the board 
680.23  shall must pay the teacher all compensation withheld as a result 
680.24  of the termination or dismissal order. 
680.25     Sec. 27.  Minnesota Statutes 1996, section 125.12, 
680.26  subdivision 13, is amended to read: 
680.27     Subd. 13.  [EXCEPTION.] This section shall does not apply 
680.28  to any district in a city of the first class. 
680.29     Sec. 28.  Minnesota Statutes 1996, section 125.12, 
680.30  subdivision 14, is amended to read: 
680.31     Subd. 14.  [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 
680.32  EXPUNGEMENT.] All evaluations and files generated within a 
680.33  school district relating to each individual teacher shall must 
680.34  be available to each individual teacher upon written request.  
680.35  Effective January 1, 1976, all evaluations and files, wherever 
680.36  generated, relating to each individual teacher shall must be 
681.1   available to each individual teacher upon written request.  The 
681.2   teacher shall have the right to reproduce any of the contents of 
681.3   the files at the teacher's expense and to submit for inclusion 
681.4   in the file written information in response to any material 
681.5   contained therein. 
681.6      A school district may destroy the files as provided by law 
681.7   and shall must expunge from the teacher's file any material 
681.8   found to be false or substantially inaccurate through the 
681.9   grievance procedure required pursuant to section 179A.20, 
681.10  subdivision 4; provided,.  The grievance procedure promulgated 
681.11  by the director of the bureau of mediation services, pursuant to 
681.12  section 179A.04, subdivision 3, clause (h), shall apply applies 
681.13  to those principals and supervisory employees not included in an 
681.14  appropriate unit as defined in section 179A.03.  Expungement 
681.15  proceedings shall must be commenced within the time period 
681.16  provided in the collective bargaining agreement for the 
681.17  commencement of a grievance.  If no time period is provided in 
681.18  the bargaining agreement, the expungement proceedings shall must 
681.19  commence within 15 days after the teacher has knowledge of the 
681.20  inclusion in the teacher's file of the material the teacher 
681.21  seeks to have expunged. 
681.22     Sec. 29.  Minnesota Statutes 1996, section 125.121, is 
681.23  amended to read: 
681.24     125.121 [COACHES, TERMINATION OF DUTIES.] 
681.25     Subdivision 1.  [TERMINATION; HEARING.] Before a district 
681.26  terminates the coaching duties of an employee who is required to 
681.27  hold a license as an athletic coach from the state board of 
681.28  education, the district shall must notify the employee in 
681.29  writing and state its reason for the proposed termination.  
681.30  Within 14 days of receiving this notification, the employee may 
681.31  request in writing a hearing on the termination before the 
681.32  board.  If a hearing is requested, the board shall must hold a 
681.33  hearing within 25 days according to the hearing procedures 
681.34  specified in section 125.12, subdivision 9, and the 
681.35  termination shall not be is final except upon the order of the 
681.36  board after the hearing. 
682.1      Subd. 2.  [FINAL DECISION.] Within ten days after the 
682.2   hearing, the board shall must issue a written decision regarding 
682.3   the termination. If the board decides to terminate the 
682.4   employee's coaching duties, the decision shall must state the 
682.5   reason on which it is based and include findings of fact based 
682.6   upon competent evidence in the record.  The board may terminate 
682.7   the employee's duties or not, as it sees fit, for any reason 
682.8   which is found to be true based on substantial and competent 
682.9   evidence in the record. 
682.10     Subd. 3.  [EXCEPTIONS.] This section shall not apply to the 
682.11  termination of coaching duties pursuant to a district transfer 
682.12  policy or as a result of the nonrenewal or termination of the 
682.13  employee's contract or the employee's discharge, demotion or 
682.14  suspension pursuant to section 125.12 or 125.17.  This section 
682.15  shall not apply to the termination of an employee's coaching 
682.16  duties prior to completion of the probationary period of 
682.17  employment. 
682.18     Sec. 30.  [125.123] [CONTRACTS.] 
682.19     Subdivision 1.  [AUTHORIZATION.] A board may enter into 
682.20  short-term, limited contracts with classroom teachers employed 
682.21  by the district.  
682.22     Subd. 2.  [PURPOSE.] The board must determine the needs of 
682.23  its classroom teachers and the need for changes in its 
682.24  curriculum.  In determining these needs, the school board must 
682.25  obtain recommendations from classroom teachers, staff 
682.26  responsible for curriculum, and the curriculum advisory 
682.27  committee.  It shall consider assessment results, other test 
682.28  results, the need for mentor teachers, and the district 
682.29  improvement plan portion of the report adopted according to 
682.30  section 123.972, subdivision 3.  Contracts executed under this 
682.31  section shall relate directly to the identified needs. 
682.32     Subd. 3.  [SELECTION COMMITTEE.] A committee of six members 
682.33  appointed by the board shall recommend teachers to receive 
682.34  contracts.  Three members of the committee shall be classroom 
682.35  teachers.  Three members shall be administrators, parents, 
682.36  members of the school board, or members of the community.  The 
683.1   committee shall consider only classroom teachers who have 
683.2   background, knowledge, or expertise needed to perform duties in 
683.3   the areas of need identified by the board. Years of service in 
683.4   the district must not be a factor for consideration by the 
683.5   committee.  A teacher shall not have a right to a contract under 
683.6   this section based on seniority or order of employment in the 
683.7   district.  The committee shall recommend to the school board 
683.8   names of individual teachers.  The number of individual teachers 
683.9   recommended shall be approximately the number designated by the 
683.10  board to meet the identified needs.  The board may award 
683.11  contracts to any of the recommended teachers but not to any 
683.12  others.  The board may request the committee to recommend 
683.13  additional names of teachers. 
683.14     Subd. 4.  [SHORT-TERM, LIMITED CONTRACTS.] Contracts 
683.15  executed under this section shall provide classroom teachers any 
683.16  one or a combination of the following: 
683.17     (1) released time during the school day; 
683.18     (2) additional hours in a school day; or 
683.19     (3) additional days or weeks of employment during the 
683.20  summer. 
683.21  Contracts executed under this section shall terminate within one 
683.22  year of the date of execution.  During the term of a contract 
683.23  under this section a teacher may be discharged for cause from 
683.24  duties under this contract; a hearing shall be held on the 
683.25  discharge upon request of the teacher.  A teacher has no rights 
683.26  in a subsequent year to a contract under this subdivision. 
683.27     Subd. 5.  [APPLICATION OF OTHER LAWS.] The provisions of 
683.28  section 125.12 or 125.17 shall not apply to initial awards, 
683.29  renewal, or termination of contracts under this section.  The 
683.30  provisions of this section concerning short-term, limited 
683.31  contracts shall not be construed to alter any aspect of other 
683.32  contracts executed by a school board. 
683.33     Subd. 6.  [REPORT.] Each district awarding contracts under 
683.34  this section is encouraged to submit a report to the 
683.35  commissioner.  The report shall indicate the number of contracts 
683.36  awarded, whether duties are to be performed before, during, or 
684.1   after the school day or during the summer, the total cost of all 
684.2   contracts, and a general description of the duties.  The 
684.3   statement shall also describe how the recommendations required 
684.4   by subdivision 2 were obtained.  Any problems associated with 
684.5   implementing this section may be included. 
684.6      Sec. 31.  [125.125] [HIRING TEACHERS; SUBSTITUTE TEACHERS.] 
684.7      The board must employ and contract with necessary qualified 
684.8   teachers and discharge the same for cause.  The board must not 
684.9   hire a substitute teacher except:  
684.10     (a) For a duration of time of less than one school year to 
684.11  replace a regular teacher who is absent; or 
684.12     (b) For a duration of time equal to or greater than one 
684.13  school year to replace a regular teacher on a leave of absence.  
684.14     If a substitute teacher is hired pursuant to clause (b), 
684.15  each full school year during which the teacher is employed by a 
684.16  district pursuant to that clause shall be deemed one year of the 
684.17  teacher's probationary period of employment pursuant to either 
684.18  section 125.12, subdivision 3, or 125.17, subdivision 2.  The 
684.19  teacher shall be eligible for continuing contract status 
684.20  pursuant to section 125.12, subdivision 4, or tenure status 
684.21  pursuant to section 125.17, subdivision 3, after completion of 
684.22  the applicable probationary period.  
684.23     Sec. 32.  Minnesota Statutes 1996, section 125.13, is 
684.24  amended to read: 
684.25     125.13 [EXCHANGE TEACHERS.] 
684.26     Subdivision 1.  [EXCHANGE TEACHER.] A person holding a 
684.27  license and contract to teach in a Minnesota public school and 
684.28  assigned by the employing district to teach elsewhere is an 
684.29  exchange teacher. 
684.30     Subd. 2.  [TEACHER QUALIFICATIONS.] Any district is 
684.31  authorized to assign a teacher for service elsewhere than in the 
684.32  employing district in exchange for a teacher with qualifications 
684.33  satisfactory to the commissioner. 
684.34     Subd. 3.  [RETENTION OF RIGHTS.] The exchange teacher shall 
684.35  retain all rights in the employing district as though teaching 
684.36  in that district. 
685.1      Sec. 33.  Minnesota Statutes 1996, section 125.135, is 
685.2   amended to read: 
685.3      125.135 [STAFF EXCHANGE PROGRAM.] 
685.4      Subdivision 1.  [ESTABLISHMENT.] A staff exchange program 
685.5   is established to allow local school districts to arrange 
685.6   temporary and voluntary exchanges among members of their 
685.7   kindergarten through grade 12 instructional and administrative 
685.8   staffs.  The purpose of the program is to provide participants 
685.9   with an understanding of the educational concerns of other local 
685.10  school districts, including concerns of class organization, 
685.11  curriculum development, instructional practices, and 
685.12  characteristics of the student population. 
685.13     The educational needs and interests of the host school 
685.14  district and the training, experience, and interests of the 
685.15  participants must determine the assignments of the participants 
685.16  in the host district.  Participants may teach courses, provide 
685.17  counseling and tutorial services, work with teachers to better 
685.18  prepare students for future educational experiences, serve an 
685.19  underserved population in the district, or assist with 
685.20  administrative functions.  The assignments participants perform 
685.21  for the host district must be comparable to the assignments the 
685.22  participants perform for the district employing the 
685.23  participants.  Participation in the exchange program need not be 
685.24  limited to one school or one school district and may involve 
685.25  other education organizations including education districts and 
685.26  SCs. 
685.27     Subd. 2.  [PROGRAM REQUIREMENTS.] All staff exchanges made 
685.28  under this section are subject to the requirements in this 
685.29  subdivision. 
685.30     (a) A school district employing a participating staff 
685.31  member must not adversely affect the staff member's salary, 
685.32  seniority, or other employment benefits, or otherwise penalize 
685.33  the staff member for participating in the program. 
685.34     (b) Upon completion or termination of an exchange, a school 
685.35  district employing a participating staff member must permit the 
685.36  staff member to return to the same assignment the staff member 
686.1   performed in the district before the exchange, if available, or, 
686.2   if not, a similar assignment. 
686.3      (c) A school district employing a participating staff 
686.4   member must continue to provide the staff member's salary and 
686.5   other employment benefits during the period of the exchange. 
686.6      (d) A participant must be licensed and tenured. 
686.7      (e) Participation in the program must be voluntary. 
686.8      (f) The length of participation in the program must be no 
686.9   less than one-half of a school year and no more than one school 
686.10  year, and any premature termination of participation must be 
686.11  upon the mutual agreement of the participant and the 
686.12  participating school district. 
686.13     (g) A participant is responsible for transportation to and 
686.14  from the host school district. 
686.15     (h) This subdivision does not abrogate or change rights of 
686.16  staff members participating in the staff exchange program or the 
686.17  terms of an agreement between the exclusive representative of 
686.18  the school district employees and the school district.  
686.19     (i) Participating school districts may enter into 
686.20  supplementary agreements with the exclusive representative of 
686.21  the school district employees to accomplish the purpose of this 
686.22  section. 
686.23     Subd. 3.  [APPLICATION PROCEDURES.] The school board of 
686.24  a school district must decide by resolution to participate in 
686.25  the staff exchange program.  A staff member wishing to 
686.26  participate in the exchange program must submit an application 
686.27  to the school district employing the staff member.  The district 
686.28  must, in a timely and appropriate manner, provide to the 
686.29  exclusive bargaining representatives of teachers in the state 
686.30  the number and names of prospective participants within the 
686.31  district, the assignments available within the district, and the 
686.32  length of time for each exchange.  The exclusive bargaining 
686.33  representatives are requested to cooperatively participate in 
686.34  the coordination of exchanges to facilitate exchanges across all 
686.35  geographical regions of the state.  Prospective participants 
686.36  must contact teachers and districts with whom they are 
687.1   interested in making an exchange.  The prospective participants 
687.2   must make all arrangements to accomplish their exchange and the 
687.3   superintendents of the participating districts must approve the 
687.4   arrangements for the exchange in writing. 
687.5      Sec. 34.  Minnesota Statutes 1996, section 125.138, is 
687.6   amended to read: 
687.7      125.138 [FACULTY EXCHANGE AND TEMPORARY ASSIGNMENT 
687.8   PROGRAM.] 
687.9      Subdivision 1.  [ESTABLISHMENT.] A program of faculty 
687.10  collaboration shall be is established to allow Minnesota school 
687.11  districts and post-secondary institutions to arrange temporary 
687.12  placements in each other's institutions.  These arrangements 
687.13  must be made on a voluntary cooperative basis between a school 
687.14  district and post-secondary institution, or between 
687.15  post-secondary institutions.  Exchanges between post-secondary 
687.16  institutions may occur among campuses in the same system or in 
687.17  different systems. 
687.18     Subd. 2.  [USES OF PROGRAM.] Each participating school 
687.19  district and post-secondary institution may determine the way in 
687.20  which the staff member's time is to be used, but it must be in a 
687.21  way that promotes understanding of the needs of each educational 
687.22  system or institution.  For example, a public school educator 
687.23  may teach courses, provide counseling and tutorial services, 
687.24  assist with the preparation of future educators, or take 
687.25  professional development courses.  A post-secondary teacher 
687.26  might teach courses at the school district, counsel students, or 
687.27  work in school administration.  Participation need not be 
687.28  limited to one school or institution and may involve other 
687.29  groups including service cooperatives. 
687.30     Subd. 3.  [SALARIES; BENEFITS; CERTIFICATION.] Temporary 
687.31  placements made under the program must not have a negative 
687.32  effect on participants' salaries, seniority, or other benefits.  
687.33  Notwithstanding sections 123.35, subdivision 6, and 125.04, a 
687.34  member of the staff of a post-secondary institution may teach in 
687.35  an elementary or secondary school or perform a service, agreed 
687.36  upon according to this section, for which a license would 
688.1   otherwise be required without holding the applicable license.  
688.2   In addition, a licensed educator employed by a school district 
688.3   may teach or perform a service, agreed upon according to this 
688.4   section, at a post-secondary institution without meeting the 
688.5   applicable qualifications of the post-secondary institution.  
688.6   A school district is not subject to section 124.19, subdivision 
688.7   3, as a result of entering into an agreement according to this 
688.8   section that enables a post-secondary educator to teach or 
688.9   provide services in the district.  All arrangements and details 
688.10  regarding the exchange must be mutually agreed to by each 
688.11  participating school district and post-secondary institution 
688.12  before implementation. 
688.13     Subd. 4.  [EDUCATORS' EMPLOYMENT; CONTINUATION.] An 
688.14  educator who held a temporary position or an exchanged position 
688.15  under this section shall must be continued in or restored to the 
688.16  position previously held, or to a position of like seniority, 
688.17  status, and pay upon return.  Retirement benefits under an 
688.18  employer-sponsored pension or retirement plan shall must not be 
688.19  reduced because of time spent on an exchange or temporary 
688.20  position under section 125.138. 
688.21     Subd. 5.  [ENTITLEMENT TO BENEFITS AND POSITION.] An 
688.22  educator who is continued in or restored to a position in 
688.23  accordance with subdivision 4: 
688.24     (1) shall must be continued or restored without loss of 
688.25  seniority; and 
688.26     (2) may participate in insurance or other benefits offered 
688.27  by the employer under its established rules and practices. 
688.28     Sec. 35.  Minnesota Statutes 1996, section 125.16, is 
688.29  amended to read: 
688.30     125.16 [TEACHERS' REPORTS.] 
688.31     No An order shall must not be issued for the payment of the 
688.32  wages of any teacher while the teacher is in default in making 
688.33  reports or in returning the teacher's register.  The teachers, 
688.34  principals, and superintendents shall make such reports as may 
688.35  be required by law or the rules of the state or local board 
688.36  under like penalty. 
689.1      Sec. 36.  Minnesota Statutes 1996, section 125.17, is 
689.2   amended to read: 
689.3      125.17 [TEACHER TENURE ACT; CITIES OF THE FIRST CLASS; 
689.4   DEFINITIONS.] 
689.5      Subdivision 1.  [WORDS, TERMS, AND PHRASES.] Unless the 
689.6   language or context clearly indicates that a different meaning 
689.7   is intended, the following words, terms, and phrases, for the 
689.8   purposes of the following subdivisions in this section shall be 
689.9   defined as follows: 
689.10     (a) [TEACHERS.] The term "teacher" includes every person 
689.11  regularly employed, as a principal, or to give instruction in a 
689.12  classroom, or to superintend or supervise classroom instruction, 
689.13  or as placement teacher and visiting teacher.  Persons regularly 
689.14  employed as counselors and school librarians shall be covered by 
689.15  these sections as teachers if licensed as teachers or as school 
689.16  librarians.  
689.17     (b) [SCHOOL BOARD.] The term "school board" includes a 
689.18  majority in membership of any and all boards or official bodies 
689.19  having the care, management, or control over public schools. 
689.20     (c) [DEMOTE.] The word "demote" means to reduce in rank or 
689.21  to transfer to a lower branch of the service or to a position 
689.22  carrying a lower salary or compensation. 
689.23     (d) [NONPROVISIONAL LICENSE.] For purposes of this section, 
689.24  "nonprovisional license" shall mean an entrance, continuing, or 
689.25  life license.  
689.26     Subd. 2.  [PROBATIONARY PERIOD; DISCHARGE OR DEMOTION.] All 
689.27  teachers in the public schools in cities of the first class 
689.28  during the first three years of consecutive employment shall be 
689.29  deemed to be in a probationary period of employment during which 
689.30  period any annual contract with any teacher may, or may not, be 
689.31  renewed as the school board, after consulting with the peer 
689.32  review committee charged with evaluating the probationary 
689.33  teachers under subdivision 2a or 2b, shall see fit.  The school 
689.34  site management team or the school board if there is no school 
689.35  site management team, shall must adopt a plan for a written 
689.36  evaluation of teachers during the probationary period according 
690.1   to subdivision 2a.  Evaluation by the peer review committee 
690.2   charged with evaluating probationary teachers under subdivision 
690.3   2a shall must occur at least three times each year for a teacher 
690.4   performing services on 120 or more school days, at least two 
690.5   times each year for a teacher performing services on 60 to 119 
690.6   school days, and at least one time each year for a teacher 
690.7   performing services on fewer than 60 school days.  Days devoted 
690.8   to parent-teacher conferences, teachers' workshops, and other 
690.9   staff development opportunities and days on which a teacher is 
690.10  absent from school shall must not be included in determining the 
690.11  number of school days on which a teacher performs services.  The 
690.12  school board may, during such probationary period, discharge or 
690.13  demote a teacher for any of the causes as specified in this 
690.14  code.  The board must give a written statement of the cause of 
690.15  such discharge or demotion shall be given to the teacher by the 
690.16  school board at least 30 days before such removal or 
690.17  demotion shall become becomes effective, and.  The teacher so 
690.18  notified shall have has no right of appeal therefrom from the 
690.19  discharge or demotion. 
690.20     Subd. 2b.  [PEER REVIEW FOR PROBATIONARY TEACHERS.] A 
690.21  school board and an exclusive representative of the teachers in 
690.22  the district shall must develop a probationary teacher peer 
690.23  review process through joint agreement. 
690.24     Subd. 3.  [PERIOD OF SERVICE AFTER PROBATIONARY PERIOD; 
690.25  DISCHARGE OR DEMOTION.] After the completion of such 
690.26  probationary period, without discharge, such teachers as are 
690.27  thereupon reemployed shall continue in service and hold their 
690.28  respective position during good behavior and efficient and 
690.29  competent service and shall must not be discharged or demoted 
690.30  except for cause after a hearing. 
690.31     Any A probationary teacher shall be is deemed to have been 
690.32  reemployed for the ensuing school year, unless the school board 
690.33  in charge of such school shall give gave such teacher notice in 
690.34  writing before June 1 of the termination of such employment.  In 
690.35  event of such notice the employment shall terminate terminates 
690.36  at the close of the school sessions of the current school year. 
691.1      Subd. 3b.  [PEER REVIEW FOR CONTINUING CONTRACT TEACHERS.] 
691.2   A school board and an exclusive representative of the teachers 
691.3   in the district shall must develop a peer review process for 
691.4   nonprobationary teachers through joint agreement. 
691.5      Subd. 4.  [GROUNDS FOR DISCHARGE OR DEMOTION.] Causes for 
691.6   the discharge or demotion of a teacher either during or after 
691.7   the probationary period shall must be: 
691.8      (1) Immoral character, conduct unbecoming a teacher, or 
691.9   insubordination; 
691.10     (2) Failure without justifiable cause to teach without 
691.11  first securing the written release of the school board having 
691.12  the care, management, or control of the school in which the 
691.13  teacher is employed; 
691.14     (3) Inefficiency in teaching or in the management of a 
691.15  school; 
691.16     (4) Affliction with active tuberculosis or other 
691.17  communicable disease shall must be considered as cause for 
691.18  removal or suspension while the teacher is suffering from such 
691.19  disability; or 
691.20     (5) Discontinuance of position or lack of pupils. 
691.21     For purposes of this subdivision, conduct unbecoming a 
691.22  teacher includes an unfair discriminatory practice described in 
691.23  section 363.03, subdivision 5. 
691.24     Subd. 5.  [HEARING OF CHARGES AGAINST TEACHER.] The charges 
691.25  against a teacher shall must be in writing and signed by the 
691.26  person making the same and then filed with the secretary or 
691.27  clerk of the school board having charge of the school in which 
691.28  the teacher is employed.  Such The school board, before 
691.29  discharging or demoting a teacher, shall must then accord the 
691.30  teacher against whom such charges have been filed a full hearing 
691.31  and give to the teacher at least ten days' notice in writing of 
691.32  the time and place of such hearing; such.  The notice may be 
691.33  served personally or sent by certified mail addressed to such 
691.34  the teacher at the teacher's last known post office address; 
691.35  provided, that.  If the charge be is made by any a person 
691.36  not in connection with the school system the charge may be 
692.1   disregarded by such the school board.  If the grounds are those 
692.2   specified in subdivision 4, clause (1), (2), (3), or (4), the 
692.3   notice must also state a teacher may request arbitration under 
692.4   subdivision 10a.  Upon such hearing being held such At the 
692.5   hearing, the school board or an arbitrator shall hear all 
692.6   evidence that may be adduced in support of the charges and for 
692.7   the teacher's defense thereto to the charges.  Either 
692.8   party shall have has the right to have a written record of the 
692.9   hearing at the expense of the board and to have witnesses 
692.10  subpoenaed and all witnesses so subpoenaed shall must be 
692.11  examined under oath.  Any member of the school board conducting 
692.12  such a hearing shall have has authority to issue subpoenas and 
692.13  to administer oaths to witnesses. 
692.14     Subd. 6.  [COUNSEL; EXAMINATION OF WITNESSES.] Each party 
692.15  appearing before the school board shall have has the right to be 
692.16  represented by counsel, and such counsel may examine and 
692.17  cross-examine witnesses and present arguments. 
692.18     Subd. 7.  [HEARINGS.] All hearings before the school 
692.19  board shall must be private or may be public at the decision of 
692.20  the teacher against whom such charges have been filed. 
692.21     Subd. 8.  [DECISION, WHEN RENDERED.] Such The hearing must 
692.22  be concluded and a decision in writing, stating the grounds on 
692.23  which it is based, rendered within 25 days after giving of such 
692.24  notice.  Where the hearing is before a school board the teacher 
692.25  may be discharged or demoted upon the affirmative vote of a 
692.26  majority of the members of the school board.  If the charges, or 
692.27  any of such, are found to be true, the school board conducting 
692.28  the hearing shall must discharge, demote, or suspend the 
692.29  teacher, as seems to be for the best interest of the school.  No 
692.30  A teacher shall must not be discharged for either of the causes 
692.31  specified in subdivision 4, clause (3), except during the school 
692.32  year, and then only upon charges filed at least four months 
692.33  before the close of the school sessions of such school year. 
692.34     Subd. 9.  [CHARGES EXPUNGED FROM RECORDS.] In all cases 
692.35  where the final decision is in favor of the teacher the charge 
692.36  or charges shall must be physically expunged from the records. 
693.1      Subd. 10.  [SUSPENSION PENDING HEARING; SALARY.] Upon the 
693.2   filing of charges After charges are filed against a teacher, the 
693.3   school board may suspend the teacher from regular duty.  If, 
693.4   upon final decision, the teacher is suspended or removed after 
693.5   the final decision, the school board may in its discretion 
693.6   determine the teacher's salary or compensation as of the time of 
693.7   filing the charges.  If the final decision is favorable to the 
693.8   teacher there shall be no abatement of, the board must not abate 
693.9   the teacher's salary or compensation. 
693.10     Subd. 10a.  [HEARING AND DETERMINATION BY ARBITRATOR.] A 
693.11  teacher against whom charges have been filed alleging any cause 
693.12  for discharge or demotion specified in subdivision 4, clause 
693.13  (1), (2), (3), or (4), may elect a hearing before an arbitrator 
693.14  instead of the school board.  The hearing is governed by this 
693.15  subdivision.  
693.16     (a) The teacher must make a written request for a hearing 
693.17  before an arbitrator within ten days after receiving a written 
693.18  notice of the filing of charges required by subdivision 5.  
693.19  Failure to request a hearing before an arbitrator during this 
693.20  period is considered acquiescence to a hearing before the board. 
693.21     (b) If the teacher and the school board are unable to 
693.22  mutually agree on an arbitrator, the school board shall must 
693.23  request from the bureau of mediation services a list of five 
693.24  persons to serve as an arbitrator.  If the teacher and the 
693.25  school board are unable to mutually agree on an arbitrator from 
693.26  the list provided, the parties shall alternately strike names 
693.27  from the list until the name of one arbitrator remains.  The 
693.28  person remaining after the striking procedure shall must be the 
693.29  arbitrator.  If the parties are unable to agree on who shall 
693.30  strike the first name, the question must be decided by a flip of 
693.31  a coin.  The teacher and the school board shall must share 
693.32  equally the costs and fees of the arbitrator. 
693.33     (c) The arbitrator shall determine, by a preponderance of 
693.34  the evidence, whether the causes specified in subdivision 4, 
693.35  clause (1), (2), (3), or (4), exist to support the proposed 
693.36  discharge or demotion.  A lesser penalty than discharge or 
694.1   demotion may be imposed by the arbitrator only to the extent 
694.2   that either party proposes such lesser penalty in the 
694.3   proceeding.  In making the determination, the arbitration 
694.4   proceeding is governed by sections 572.11 to 572.17 and by the 
694.5   collective bargaining agreement applicable to the teacher. 
694.6      (d) An arbitration hearing conducted under this subdivision 
694.7   is a meeting for preliminary consideration of allegations or 
694.8   charges within the meaning of section 471.705, subdivision 1d, 
694.9   clause (c), and shall must be closed, unless the teacher 
694.10  requests it to be open. 
694.11     (e) The arbitrator's decision is final and binding on the 
694.12  parties, subject to sections 572.18 to 572.26. 
694.13     Subd. 11.  [SERVICES TERMINATED BY DISCONTINUANCE OR LACK 
694.14  OF PUPILS; PREFERENCE GIVEN.] (a) Any A teacher whose services 
694.15  are terminated on account of discontinuance of position or lack 
694.16  of pupils shall must receive first consideration for other 
694.17  positions in the district for which that teacher is qualified.  
694.18  In the event it becomes necessary to discontinue one or more 
694.19  positions, in making such discontinuance, teachers shall must be 
694.20  discontinued in any department in the inverse order in which 
694.21  they were employed. 
694.22     (b) Notwithstanding the provisions of clause (a), no a 
694.23  teacher shall be is not entitled to exercise any seniority when 
694.24  that exercise results in that teacher being retained by the 
694.25  district in a field for which the teacher holds only a 
694.26  provisional license, as defined by the board of teaching, unless 
694.27  that exercise of seniority results in the termination of 
694.28  services, on account of discontinuance of position or lack of 
694.29  pupils, of another teacher who also holds a provisional license 
694.30  in the same field.  The provisions of this clause shall do not 
694.31  apply to vocational education licenses.  
694.32     (c) Notwithstanding the provisions of clause (a), no a 
694.33  teacher shall must not be reinstated to a position in a field in 
694.34  which the teacher holds only a provisional license, other than a 
694.35  vocational education license, while another teacher who holds a 
694.36  nonprovisional license in the same field is available for 
695.1   reinstatement.  
695.2      Subd. 12.  [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 
695.3   EXPUNGEMENT.] All evaluations and files generated within 
695.4   a school district relating to each individual teacher shall must 
695.5   be available to each individual teacher upon the teacher's 
695.6   written request.  Effective January 1, 1976, all evaluations and 
695.7   files, wherever generated, relating to each individual teacher 
695.8   shall must be available to each individual teacher upon the 
695.9   teacher's written request.  The teacher shall have has the right 
695.10  to reproduce any of the contents of the files at the teacher's 
695.11  expense and to submit for inclusion in the file written 
695.12  information in response to any material contained therein. 
695.13     A school district may destroy the files as provided by law 
695.14  and shall must expunge from the teacher's file any material 
695.15  found to be false or substantially inaccurate through the 
695.16  grievance procedure required pursuant to section 179A.20, 
695.17  subdivision 4; provided,.  The grievance procedure promulgated 
695.18  by the director of the bureau of mediation services, pursuant to 
695.19  section 179A.04, subdivision 3, clause (h), shall apply applies 
695.20  to those principals and supervisory employees not included in an 
695.21  appropriate unit as defined in section 179A.03.  Expungement 
695.22  proceedings shall must be commenced within the time period 
695.23  provided in the collective bargaining agreement for the 
695.24  commencement of a grievance.  If no time period is provided in 
695.25  the bargaining agreement, the expungement proceedings shall must 
695.26  commence within 15 days after the teacher has knowledge of the 
695.27  inclusion in the teacher's file of the material the teacher 
695.28  seeks to have expunged. 
695.29     Sec. 37.  Minnesota Statutes 1996, section 125.18, is 
695.30  amended to read: 
695.31     125.18 [SABBATICAL LEAVE FOR SCHOOL TEACHERS.] 
695.32     Subdivision 1.  [QUALIFICATIONS.] A teacher who holds a 
695.33  license, according to this chapter, and a contract for 
695.34  employment by a school district or other organization providing 
695.35  public education may be granted a sabbatical leave by the board 
695.36  employing the teacher under rules promulgated by the board. 
696.1      Subd. 2.  [RETURN TO POSITION.] Any A teacher who makes 
696.2   application applies for and accepts sabbatical leave shall agree 
696.3   that, upon the conclusion of said sabbatical leave, the teacher 
696.4   shall return to the teacher's position for a period determined 
696.5   by the board before the leave is granted, or repay the district 
696.6   the portion of salary received while on sabbatical leave. 
696.7      Subd. 3.  [RETAIN RIGHTS IN EMPLOYING DISTRICT.] Any A 
696.8   teacher who has been granted a sabbatical leave shall must 
696.9   retain all rights in the employing district as though teaching 
696.10  in that district. 
696.11     Subd. 4.  [DEFINITION.] The term sabbatical leave, as used 
696.12  in this section, shall mean means compensated leaves of absence 
696.13  granted for purposes of professional improvement or service. 
696.14     Sec. 38.  Minnesota Statutes 1996, section 125.182, is 
696.15  amended to read: 
696.16     125.182 [DEFINITIONS.] 
696.17     Subdivision 1.  [DEFINITIONS.] For the purpose of sections 
696.18  125.181 to 125.185, the terms defined in this section have the 
696.19  meanings given them, unless another meaning is clearly indicated.
696.20     Subd. 2.  [TEACHER.] "Teacher" means a classroom teacher or 
696.21  other similar professional employee required to hold a license 
696.22  from the board of teaching.  
696.23     Subd. 3.  [BOARD.] "Board" means the board of teaching. 
696.24     Sec. 39.  Minnesota Statutes 1996, section 125.183, is 
696.25  amended to read: 
696.26     125.183 [MEMBERSHIP.] 
696.27     Subdivision 1.  [BOARD OF TEACHING.] The board of teaching 
696.28  consists of 11 members appointed by the governor.  Membership 
696.29  terms, compensation of members, removal of members, the filling 
696.30  of membership vacancies, and fiscal year and reporting 
696.31  requirements shall be are as provided in sections 214.07 to 
696.32  214.09.  No member may be reappointed for more than one 
696.33  additional term. 
696.34     Subd. 3.  [MEMBERSHIP.] Except for the representatives of 
696.35  higher education and the public, to be eligible for appointment 
696.36  to the board of teaching a person must be fully licensed for the 
697.1   position held and have at least five years teaching experience 
697.2   in Minnesota, including the two years immediately preceding 
697.3   nomination and appointment.  Each nominee, other than a public 
697.4   nominee, must be selected on the basis of professional 
697.5   experience and knowledge of teacher education, accreditation, 
697.6   and licensure.  The board must be composed of: 
697.7      (1) six classroom teachers; 
697.8      (2) one higher education representative, who must be a 
697.9   faculty member preparing teachers; 
697.10     (3) one school administrator; and 
697.11     (4) three members of the public, two of whom must be 
697.12  present or former members of school boards.  
697.13     Subd. 4.  [VACANT POSITION.] The position of a member who 
697.14  leaves Minnesota or whose employment status changes to a 
697.15  category different from that from which appointed shall be is 
697.16  deemed vacant. 
697.17     Subd. 5.  [ADMINISTRATION, TERMS, COMPENSATION; REMOVAL; 
697.18  VACANCIES.] The provision of staff, administrative services and 
697.19  office space; the review and processing of complaints; the 
697.20  setting of fees; the selection and duties of an executive 
697.21  secretary to serve the board; and other provisions relating to 
697.22  board operations shall be are as provided in chapter 214.  
697.23  Membership terms, compensation of members, removal of members, 
697.24  the filling of membership vacancies, and fiscal year and 
697.25  reporting requirements shall be are as provided in sections 
697.26  214.07 to 214.09. 
697.27     Subd. 6.  [REIMBURSEMENT TO DISTRICTS.] The board may 
697.28  reimburse local school districts for the costs of substitute 
697.29  teachers employed when regular teachers are providing 
697.30  professional assistance to the state by serving on the board or 
697.31  on a committee or task force appointed by the board and charged 
697.32  to make recommendations concerning standards for teacher 
697.33  licensure in this state. 
697.34     Sec. 40.  Minnesota Statutes 1996, section 125.184, is 
697.35  amended to read: 
697.36     125.184 [MEETINGS.] 
698.1      Subdivision 1.  [MEETINGS.] The board of teaching shall 
698.2   must meet regularly at such the times and places as the board 
698.3   shall determine determines.  Meetings shall must be called by 
698.4   the chair or at the written request of any eight members. 
698.5      Subd. 2.  [EXECUTIVE SECRETARY.] The board of teaching 
698.6   shall must have an executive secretary who shall be is in the 
698.7   unclassified civil service and who shall is not be a member of 
698.8   the board. 
698.9      Sec. 41.  Minnesota Statutes 1996, section 125.185, is 
698.10  amended to read: 
698.11     125.185 [DUTIES.] 
698.12     Subdivision 1.  [CODE OF ETHICS.] The board of teaching 
698.13  shall must develop by rule a code of ethics covering standards 
698.14  of professional teaching practices, including areas of ethical 
698.15  conduct and professional performance and methods of enforcement. 
698.16     Subd. 2.  [ADVISE MEMBERS OF PROFESSION.] The board shall 
698.17  must act in an advisory capacity to members of the profession in 
698.18  matters of interpretation of the code of ethics. 
698.19     Subd. 3.  [OFFICERS.] The board shall elect a chair and 
698.20  such other officers as it may deem necessary. 
698.21     Subd. 4.  [LICENSE AND RULES.] (a) The board shall must 
698.22  adopt rules to license public school teachers and interns 
698.23  subject to chapter 14. 
698.24     (b) The board shall must adopt rules requiring a person to 
698.25  successfully complete a skills examination in reading, writing, 
698.26  and mathematics as a requirement for initial teacher licensure.  
698.27  Such rules shall must require college and universities offering 
698.28  a board approved teacher preparation program to provide remedial 
698.29  assistance to persons who did not achieve a qualifying score on 
698.30  the skills examination, including those for whom English is a 
698.31  second language. 
698.32     (c) The board shall must adopt rules to approve teacher 
698.33  preparation programs. 
698.34     (d) The board shall must provide the leadership and shall 
698.35  adopt rules for the redesign of teacher education programs to 
698.36  implement a research based, results-oriented curriculum that 
699.1   focuses on the skills teachers need in order to be effective.  
699.2   The board shall implement new systems of teacher preparation 
699.3   program evaluation to assure program effectiveness based on 
699.4   proficiency of graduates in demonstrating attainment of program 
699.5   outcomes. 
699.6      (e) The board shall must adopt rules requiring successful 
699.7   completion of an examination of general pedagogical knowledge 
699.8   and examinations of licensure-specific teaching skills.  The 
699.9   rules shall be effective on the dates determined by the board, 
699.10  but not later than July 1, 1999. 
699.11     (f) The board shall must adopt rules requiring teacher 
699.12  educators to work directly with elementary or secondary school 
699.13  teachers in elementary or secondary schools to obtain periodic 
699.14  exposure to the elementary or secondary teaching environment. 
699.15     (g) The board shall must grant licenses to interns and to 
699.16  candidates for initial licenses. 
699.17     (h) The board shall must design and implement an assessment 
699.18  system which requires a candidate for an initial license and 
699.19  first continuing license to demonstrate the abilities necessary 
699.20  to perform selected, representative teaching tasks at 
699.21  appropriate levels. 
699.22     (i) The board shall must receive recommendations from local 
699.23  committees as established by the board for the renewal of 
699.24  teaching licenses. 
699.25     (j) The board shall must grant life licenses to those who 
699.26  qualify according to requirements established by the board, and 
699.27  suspend or revoke licenses pursuant to sections 125.09 and 
699.28  214.10.  The board shall must not establish any expiration date 
699.29  for application for life licenses. 
699.30     Subd. 4b.  [COST AND EDUCATIONAL IMPLICATIONS OF RULES.] 
699.31  Prior to the adoption by the board of teaching of any rule which 
699.32  must be submitted to public hearing, a representative of the 
699.33  commissioner shall appear before the board of teaching and at 
699.34  the hearing required pursuant to section 14.14, subdivision 1, 
699.35  to comment on the cost and educational implications of that 
699.36  proposed rule. 
700.1      Subd. 5.  [REGISTER OF PERSONS LICENSED.] The executive 
700.2   secretary of the board of teaching shall keep a record of the 
700.3   proceedings of and a register of all persons licensed pursuant 
700.4   to the provisions of this chapter.  The register shall must show 
700.5   the name, address, license number and the renewal thereof of the 
700.6   license.  The board shall must on July 1, of each year or as 
700.7   soon thereafter as is practicable, compile a list of such duly 
700.8   licensed teachers and transmit a copy thereof of the list to the 
700.9   board.  A copy of the register shall must be available during 
700.10  business hours at the office of the board to any interested 
700.11  person. 
700.12     Subd. 6.  [FINANCES OF BOARD.] The commissioner shall 
700.13  provide all necessary materials and assistance for the 
700.14  transaction of the business of the board of teaching and all 
700.15  moneys received by the board of teaching shall be paid into the 
700.16  state treasury as provided by law.  The expenses of 
700.17  administering sections 125.01 to 125.187 which are incurred by 
700.18  the board of teaching shall be paid for from appropriations made 
700.19  to the board of teaching. 
700.20     Subd. 7.  [FRAUD; GROSS MISDEMEANOR.] Any A person who 
700.21  shall in any manner claim claims to be a licensed teacher 
700.22  without a valid existing license issued by the board or any 
700.23  person who employs fraud or deception in applying for or 
700.24  securing a license shall be is guilty of a gross misdemeanor. 
700.25     Subd. 9.  [ADOPTING RULES.] The board of teaching may adopt 
700.26  rules subject to the provisions of chapter 14 to implement 
700.27  sections 125.04 to 125.09 and 125.181 to 125.187.  
700.28     Subd. 10.  [VARIANCES.] Notwithstanding subdivision 9 and 
700.29  section 14.05, subdivision 4, the board of teaching may grant a 
700.30  variance to its rules upon application by a school district for 
700.31  purposes of implementing experimental programs in learning or 
700.32  management. 
700.33     Sec. 42.  Minnesota Statutes 1996, section 125.187, is 
700.34  amended to read: 
700.35     125.187 [VALIDITY OF CERTIFICATES OR LICENSES.] 
700.36     No A rule adopted by the board of teaching shall must not 
701.1   affect the validity of certificates or licenses to teach in 
701.2   effect on July 1, 1974, or the rights and privileges of the 
701.3   holders thereof, except that any such certificate or license may 
701.4   be suspended or revoked for any of the causes and by the 
701.5   procedures specified by law. 
701.6      Sec. 43.  Minnesota Statutes 1996, section 125.188, 
701.7   subdivision 1, is amended to read: 
701.8      Subdivision 1.  [REQUIREMENTS.] (a) A preparation program 
701.9   that is an alternative to the post-secondary teacher preparation 
701.10  program as a means to acquire an entrance license is 
701.11  established.  The program may be offered in any instructional 
701.12  field. 
701.13     (b) To participate in the alternative preparation program, 
701.14  the candidate must: 
701.15     (1) have a bachelor's degree; 
701.16     (2) pass an examination of skills in reading, writing, and 
701.17  mathematics as required by section 125.05; 
701.18     (3) have been offered a job to teach in a school district, 
701.19  group of districts, or an education district approved by the 
701.20  board of teaching to offer an alternative preparation licensure 
701.21  program; 
701.22     (4)(i) have a college major in the subject area to be 
701.23  taught; or 
701.24     (ii) have five years of experience in a field related to 
701.25  the subject to be taught; and 
701.26     (5) document successful experiences working with children. 
701.27     (c) An alternative preparation license is of one year 
701.28  duration and is issued by the board of teaching to participants 
701.29  on admission to the alternative preparation program.  
701.30     (d) The board of teaching shall must ensure that one of the 
701.31  purposes of this program is to enhance the school 
701.32  desegregation/integration policies adopted by the state.  
701.33     Sec. 44.  Minnesota Statutes 1996, section 125.188, 
701.34  subdivision 3, is amended to read: 
701.35     Subd. 3.  [PROGRAM APPROVAL.] (a) The board of teaching 
701.36  shall must approve alternative preparation programs based on 
702.1   criteria adopted by the board. 
702.2      (b) An alternative preparation program at a school 
702.3   district, group of schools, or an education district must be 
702.4   affiliated with a post-secondary institution that has a teacher 
702.5   preparation program. 
702.6      Sec. 45.  Minnesota Statutes 1996, section 125.188, 
702.7   subdivision 5, is amended to read: 
702.8      Subd. 5.  [STANDARD ENTRANCE LICENSE.] The board of 
702.9   teaching shall must issue a standard entrance license to an 
702.10  alternative preparation licensee who has successfully completed 
702.11  the school year in the alternative preparation program and who 
702.12  has received a positive recommendation from the licensee's 
702.13  mentorship team. 
702.14     Sec. 46.  Minnesota Statutes 1996, section 125.1885, 
702.15  subdivision 5, is amended to read: 
702.16     Subd. 5.  [STANDARD ENTRANCE LICENSE.] The state board of 
702.17  education shall must issue a standard entrance license to an 
702.18  alternative preparation licensee who has successfully completed 
702.19  the school year in the alternative preparation program and who 
702.20  has received a positive recommendation from the licensee's 
702.21  mentorship team. 
702.22     Sec. 47.  Minnesota Statutes 1996, section 125.189, is 
702.23  amended to read: 
702.24     125.189 [TEACHERS OF DEAF AND HARD OF HEARING STUDENTS; 
702.25  LICENSURE REQUIREMENTS.] 
702.26     The board of teaching will must review and determine 
702.27  appropriate licensure requirements for a candidate for a license 
702.28  or an applicant for a continuing license to teach deaf and hard 
702.29  of hearing students in prekindergarten through grade 12.  In 
702.30  addition to other requirements, a candidate must demonstrate the 
702.31  minimum level of proficiency in American sign language as 
702.32  determined by the board.  
702.33     Sec. 48.  Minnesota Statutes 1996, section 125.1895, 
702.34  subdivision 4, is amended to read: 
702.35     Subd. 4.  [REIMBURSEMENT.] For purposes of revenue under 
702.36  sections 124.321 and 124.322, the department of children, 
703.1   families, and learning shall must only reimburse school 
703.2   districts for the services of those interpreters/transliterators 
703.3   who satisfy the standards of competency under this section.  
703.4      Sec. 49.  [125.193] [TEACHERS; LICENSES.] 
703.5      Subdivision 1.  [BILINGUAL AND ENGLISH AS A SECOND LANGUAGE 
703.6   LICENSES.] The board of teaching, hereinafter the board, must 
703.7   grant teaching licenses in bilingual education and English as a 
703.8   second language to persons who present satisfactory evidence 
703.9   that they: 
703.10     (a) Possess competence and communicative skills in English 
703.11  and in another language; 
703.12     (b) Possess a bachelor's degree or other academic degree 
703.13  approved by the board, and meet such requirements as to course 
703.14  of study and training as the board may prescribe. 
703.15     Subd. 2.  [PERSONS HOLDING GENERAL TEACHING LICENSES.] A 
703.16  person holding a general teaching license who presents the board 
703.17  with satisfactory evidence of competence and communicative 
703.18  skills in a language other than English may be licensed under 
703.19  this section. 
703.20     Subd. 3.  [EMPLOYMENT OF TEACHERS.] Teachers employed in a 
703.21  bilingual education or English as a second language program 
703.22  established pursuant to sections 126.261 to 126.269 shall not be 
703.23  employed to replace any presently employed teacher who otherwise 
703.24  would not be replaced. 
703.25     Subd. 4.  [TEACHER PREPARATION PROGRAMS.] For the purpose 
703.26  of licensing bilingual and English as a second language 
703.27  teachers, the board may approve programs at colleges or 
703.28  universities designed for their training subject to the approval 
703.29  of the state board of education. 
703.30     Subd. 5.  [PERSONS ELIGIBLE FOR EMPLOYMENT.] Any person 
703.31  licensed under this section shall be eligible for employment by 
703.32  a school board as a teacher in a bilingual education or English 
703.33  as a second language program in which the language for which the 
703.34  person is licensed is taught or used as a medium of 
703.35  instruction.  A board may prescribe only those additional 
703.36  qualifications for teachers licensed under this section as are 
704.1   approved by the board of teaching.  
704.2      Subd. 6.  [AFFIRMATIVE EFFORTS IN HIRING.] In hiring for 
704.3   all positions in bilingual education programs, districts must 
704.4   give preference to and make affirmative efforts to seek, 
704.5   recruit, and employ persons who are (a) native speakers of the 
704.6   language which is the medium of instruction in the bilingual 
704.7   education program, and (b) who share the culture of the limited 
704.8   English speaking children who are enrolled in the program.  The 
704.9   district shall provide procedures for the involvement of the 
704.10  parent advisory committees in designing the procedures for the 
704.11  recruitment, screening and selection of applicants.  This 
704.12  section must not be construed to limit the school board's 
704.13  authority to hire and discharge personnel. 
704.14     Sec. 50.  Minnesota Statutes 1996, section 125.211, 
704.15  subdivision 2, is amended to read: 
704.16     Subd. 2.  [RESPONSIBILITY.] By July 1, 1989, the board of 
704.17  teaching shall must begin to evaluate the effectiveness of 
704.18  prebaccalaureate, postbaccalaureate, and other alternative 
704.19  program structures for preparing candidates for entrance into 
704.20  the teaching profession.  The evaluation shall be conducted by 
704.21  independent research centers or evaluators who are not 
704.22  associated with a Minnesota teacher education institution and 
704.23  shall be longitudinal in nature.  By July 1, 1990, the board of 
704.24  teaching shall must make a preliminary report on the 
704.25  effectiveness of alternative program structures to the education 
704.26  and finance committees of the legislature. 
704.27     Sec. 51.  Minnesota Statutes 1996, section 125.230, 
704.28  subdivision 4, is amended to read: 
704.29     Subd. 4.  [EMPLOYMENT CONDITIONS.] A school district 
704.30  shall must pay a teaching resident a salary equal to 75 percent 
704.31  of the salary of a first-year teacher with a bachelor's degree 
704.32  in the district.  The resident shall be a member of the local 
704.33  bargaining unit and shall be covered under the terms of the 
704.34  contract, except for salary and benefits, unless otherwise 
704.35  provided in this subdivision.  The school district shall must 
704.36  provide health insurance coverage for the resident if the 
705.1   district provides it for teachers, and may provide other 
705.2   benefits upon negotiated agreement. 
705.3      Sec. 52.  Minnesota Statutes 1996, section 125.230, 
705.4   subdivision 6, is amended to read: 
705.5      Subd. 6.  [LEARNING AND DEVELOPMENT REVENUE ELIGIBILITY.] A 
705.6   school district with an approved teaching residency program may 
705.7   use learning and development revenue for each teaching resident 
705.8   in kindergarten through grade six.  A district also may use the 
705.9   revenue for a paraprofessional who is a person of color enrolled 
705.10  in an approved teacher preparation program.  A school 
705.11  district shall must not use a teaching resident to replace an 
705.12  existing teaching position unless: 
705.13     (1) there is no teacher available who is properly licensed 
705.14  to fill the vacancy, who has been placed on unrequested leave of 
705.15  absence in the district, and who wishes to be reinstated; and 
705.16     (2) the district's collective bargaining agreement includes 
705.17  a memorandum of understanding that permits teaching residents to 
705.18  fill an existing teaching position. 
705.19     Sec. 53.  Minnesota Statutes 1996, section 125.230, 
705.20  subdivision 7, is amended to read: 
705.21     Subd. 7.  [RECOMMENDATION FOR LICENSURE REQUIREMENTS.] (a) 
705.22  The board of teaching shall must develop for teachers of 
705.23  students in prekindergarten through grade 12, model teaching 
705.24  residency outcomes and assessments, and mentoring programs. 
705.25     (b) The board of teaching shall must report to the 
705.26  education committees of the legislature by February 15, 1994, on 
705.27  developing a residency program as part of teacher licensure.  
705.28  The report shall at least discuss: 
705.29     (1) whether a teacher residency program should be a 
705.30  prerequisite to obtaining an initial teaching license or a 
705.31  continuing teacher license; 
705.32     (2) the number of teacher residency positions available 
705.33  statewide by school district; 
705.34     (3) how a teacher residency program and a mentorship 
705.35  program for school teachers can be structured; 
705.36     (4) whether additional state funding for teacher residency 
706.1   programs is required; 
706.2      (5) the interrelationship between existing teacher 
706.3   preparation programs and a teacher residency program; 
706.4      (6) issues related to implementing a teacher residency 
706.5   program, including a timeline for implementing the program; and 
706.6      (7) how a teacher residency program may impact upon a 
706.7   teacher licensed in another state who seeks a teaching position 
706.8   in Minnesota. 
706.9      Sec. 54.  [125.2305] [PRACTICE OR STUDENT TEACHERS.] 
706.10     The board may, by agreements with teacher preparing 
706.11  institutions, arrange for classroom experience in the district 
706.12  for practice or student teachers who have completed not less 
706.13  than two years of an approved teacher education program.  Such 
706.14  practice teachers must be provided with appropriate supervision 
706.15  by a fully qualified teacher under rules promulgated by the 
706.16  board.  Practice teachers are deemed employees of the school 
706.17  district in which they are rendering services for purposes of 
706.18  workers' compensation; liability insurance, if provided for 
706.19  other district employees in accordance with section 123.41; and 
706.20  legal counsel in accordance with the provisions of section 
706.21  127.03. 
706.22     Sec. 55.  Minnesota Statutes 1996, section 125.231, 
706.23  subdivision 3, is amended to read: 
706.24     Subd. 3.  [APPLICATIONS.] The board of teaching shall must 
706.25  make application forms available to sites interested in 
706.26  developing or expanding a mentorship program.  A school 
706.27  district, a group of school districts, or a coalition of 
706.28  districts, teachers and teacher education institutions may apply 
706.29  for a teacher mentorship program grant.  The board of teaching, 
706.30  in consultation with the teacher mentoring task force, shall 
706.31  must approve or disapprove the applications.  To the extent 
706.32  possible, the approved applications must reflect effective 
706.33  mentoring components, include a variety of coalitions and be 
706.34  geographically distributed throughout the state.  The board of 
706.35  teaching shall must encourage the selected sites to consider the 
706.36  use of its assessment procedures.  
707.1      Sec. 56.  [125.232] [STAFF DEVELOPMENT PROGRAM.] 
707.2      Subdivision 1.  [STAFF DEVELOPMENT COMMITTEE.] A school 
707.3   board must use the revenue authorized in section 124A.29 for 
707.4   in-service education for programs under section 126.77, 
707.5   subdivision 2, or for staff development plans under this 
707.6   section.  The board must establish a staff development committee 
707.7   to develop the plan, assist site decision-making teams in 
707.8   developing a site plan consistent with the goals of the plan, 
707.9   and evaluate staff development efforts at the site level.  A 
707.10  majority of the advisory committee must be teachers representing 
707.11  various grade levels, subject areas, and special education.  The 
707.12  advisory committee must also include nonteaching staff, parents, 
707.13  and administrators.  Districts must report staff development 
707.14  results and expenditures to the commissioner in the form and 
707.15  manner determined by the commissioner.  The expenditure report 
707.16  must include expenditures by the board for district level 
707.17  activities and expenditures made by the staff.  The report must 
707.18  provide a breakdown of expenditures for (1) curriculum 
707.19  development and programs, (2) in-service education, workshops, 
707.20  and conferences, and (3) the cost of teachers or substitute 
707.21  teachers for staff development purposes.  Within each of these 
707.22  categories, the report must also indicate whether the 
707.23  expenditures were incurred at the district level or the school 
707.24  site level, and whether the school site expenditures were made 
707.25  possible by the grants to school sites that demonstrate 
707.26  exemplary use of allocated staff development revenue.  These 
707.27  expenditures are to be reported using the UFARS system.  The 
707.28  commissioner shall report the staff development expenditure data 
707.29  to the education committees of the legislature by February 15 
707.30  each year. 
707.31     Subd. 2.  [CONTENTS OF THE PLAN.] The plan must include the 
707.32  staff development outcomes under subdivision 3, the means to 
707.33  achieve the outcomes, and procedures for evaluating progress at 
707.34  each school site toward meeting education outcomes.  
707.35     Subd. 3.  [STAFF DEVELOPMENT OUTCOMES.] The staff 
707.36  development committee must adopt a staff development plan for 
708.1   improving student achievement of education outcomes.  The plan 
708.2   must be consistent with education outcomes that the school board 
708.3   determines.  The plan must include ongoing staff development 
708.4   activities that contribute toward continuous improvement in 
708.5   achievement of the following goals: 
708.6      (1) improve student achievement of state and local 
708.7   education standards in all areas of the curriculum; 
708.8      (2) effectively meet the needs of a diverse student 
708.9   population, including at-risk children, children with 
708.10  disabilities, and gifted children, within the regular classroom 
708.11  and other settings; 
708.12     (3) provide an inclusive curriculum for a racially, 
708.13  ethnically, and culturally diverse student population that is 
708.14  consistent with the state education diversity rule and the 
708.15  district's education diversity plan; 
708.16     (4) improve staff ability to collaborate and consult with 
708.17  one another and to resolve conflicts; 
708.18     (5) effectively teach and model violence prevention policy 
708.19  and curriculum that address issues of harassment and teach 
708.20  nonviolent alternatives for conflict resolution; and 
708.21     (6) provide teachers and other members of site-based 
708.22  management teams with appropriate management and financial 
708.23  management skills. 
708.24     Sec. 57.  [125.233] [TEACHER CENTERS.] 
708.25     Subdivision 1.  [DEFINITION.] For the purposes of this 
708.26  section, "teacher" has the meaning given it in section 179A.03, 
708.27  subdivision 18. 
708.28     Subd. 2.  [ESTABLISHMENT.] A teacher center may be 
708.29  established by one or more school boards and the exclusive 
708.30  representatives of the teachers.  The teacher center shall serve 
708.31  at least ten districts or 3,000 teachers. 
708.32     Subd. 3.  [POLICY BOARD MEMBERSHIP.] Representatives of 
708.33  exclusive representatives and representatives of the school 
708.34  boards shall mutually determine the composition of the policy 
708.35  board according to the guidelines in this subdivision.  A 
708.36  majority of the policy board must be teachers.  The number of 
709.1   policy board members from each participating district must be in 
709.2   proportion to the number of teachers in each district.  The 
709.3   board shall be composed of elementary teachers, secondary 
709.4   teachers, and other teachers, parents, and representatives of 
709.5   school boards, post-secondary education, business, and labor.  
709.6   At least one teacher from each participating district shall be a 
709.7   member of the board. 
709.8      Subd. 4.  [BOARD POWERS AND DUTIES.] The board shall 
709.9   develop policy, designate a fiscal agent, adopt a budget, expend 
709.10  funds to accomplish the purposes of the center, contract for 
709.11  technical and other assistance, and perform other managerial or 
709.12  supervisory activities consistent with the rules of the state 
709.13  board of education.  The board may employ staff or contract with 
709.14  consultants for services. 
709.15     Subd. 5.  [CENTER FUNCTIONS.] A teacher center shall 
709.16  perform functions according to this subdivision.  The center 
709.17  shall assist teachers, diagnose learning needs, experiment with 
709.18  the use of multiple instructional approaches, assess pupil 
709.19  outcomes, assess staff development needs and plans, and teach 
709.20  school personnel about effective pedagogical approaches.  The 
709.21  center shall develop and produce curricula and curricular 
709.22  materials designed to meet the educational needs of pupils being 
709.23  served, by applying educational research and new and improved 
709.24  methods, practices, and techniques.  The center shall provide 
709.25  programs to improve the skills of teachers to meet the special 
709.26  educational needs of pupils.  The center shall provide programs 
709.27  to familiarize teachers with developments in curriculum 
709.28  formulation and educational research, including how research can 
709.29  be used to improve teaching skills.  The center shall facilitate 
709.30  sharing of resources, ideas, methods, and approaches directly 
709.31  related to classroom instruction and improve teachers' 
709.32  familiarity with current teaching materials and products for use 
709.33  in their classrooms.  The center shall provide in-service 
709.34  programs. 
709.35     Sec. 58.  Minnesota Statutes 1996, section 125.53, is 
709.36  amended to read: 
710.1      125.53 [DESIGNATED STATE OFFICIAL.] 
710.2      For the purposes of the agreement set forth in section 
710.3   125.52, the designated state official for this state shall be is 
710.4   the commissioner of children, families, and learning. 
710.5      Sec. 59.  Minnesota Statutes 1996, section 125.54, is 
710.6   amended to read: 
710.7      125.54 [RECORD OF CONTRACTS.] 
710.8      Two copies of all contracts made on behalf of this state 
710.9   pursuant to the agreement set forth in section 125.52 shall must 
710.10  be kept on file in the office of the commissioner of children, 
710.11  families, and learning. 
710.12     Sec. 60.  Minnesota Statutes 1996, section 125.60, is 
710.13  amended to read: 
710.14     125.60 [EXTENDED LEAVES OF ABSENCE.] 
710.15     Subdivision 1.  [DEFINITION.] As used in this section, the 
710.16  term "teachers" shall have the meaning given it in section 
710.17  125.03, subdivision 1.  
710.18     Subd. 2.  [LEAVE OF ABSENCE.] The board of any district may 
710.19  grant an extended leave of absence without salary to any full- 
710.20  or part-time elementary or secondary teacher who has been 
710.21  employed by the district for at least five years and has at 
710.22  least ten years of allowable service, as defined in section 
710.23  354.05, subdivision 13, or the bylaws of the appropriate 
710.24  retirement association or ten years of full-time teaching 
710.25  service in Minnesota public elementary and secondary schools.  
710.26  The maximum duration of an extended leave of absence pursuant to 
710.27  this section shall must be determined by mutual agreement of the 
710.28  board and the teacher at the time the leave is granted and shall 
710.29  be at least three but no more than five years.  An extended 
710.30  leave of absence pursuant to this section shall be taken by 
710.31  mutual consent of the board and the teacher.  If the school 
710.32  board denies a teacher's request, it shall must provide 
710.33  reasonable justification for the denial.  
710.34     Subd. 3.  [REINSTATEMENT.] Except as provided in 
710.35  subdivisions 6a and 6b, a teacher on an extended leave of 
710.36  absence pursuant to this section shall have the right to be 
711.1   reinstated to a position for which the teacher is licensed at 
711.2   the beginning of any school year which immediately follows a 
711.3   year of the extended leave of absence, unless the teacher fails 
711.4   to give the required notice of intention to return or is 
711.5   discharged or placed on unrequested leave of absence or the 
711.6   contract is terminated pursuant to section 125.12 or 125.17 
711.7   while the teacher is on the extended leave.  The board shall is 
711.8   not be obligated to reinstate any teacher who is on an extended 
711.9   leave of absence pursuant to this section, unless the teacher 
711.10  advises advised the board of the intention to return before 
711.11  February 1 in the school year preceding the school year in which 
711.12  the teacher wishes to return or by February 1 in the calendar 
711.13  year in which the leave is scheduled to terminate.  
711.14     Subd. 4.  [SENIORITY AND CONTINUING CONTRACT RIGHTS.] Any 
711.15  teacher who is reinstated to a teaching position after an 
711.16  extended leave of absence pursuant to this section shall retain 
711.17  seniority and continuing contract rights in the employing 
711.18  district as though the teacher had been teaching in the district 
711.19  during the period of the extended leave; provided, however,.  
711.20  This subdivision shall not be construed to require a board to 
711.21  reinstate a teacher to any particular position or to include the 
711.22  years spent on the extended leave of absence in the 
711.23  determination of a teacher's salary upon return to teaching in 
711.24  this district.  
711.25     Subd. 5.  [SALARY.] The years spent by a teacher on an 
711.26  extended leave of absence pursuant to this section shall not be 
711.27  included in the determination of salary upon return to teaching 
711.28  in the district.  The credits earned by a teacher on an extended 
711.29  leave of absence pursuant to this section shall not be included 
711.30  in the determination of salary upon return to teaching in the 
711.31  district for a period equal to the time of the extended leave of 
711.32  absence. 
711.33     Subd. 6.  [SCHOOL BOARD AUTHORITY.] Nothing within the 
711.34  provisions of this section shall be construed to limit the 
711.35  authority of a school board to grant any teacher a leave of 
711.36  absence which is not subject to the provisions of this section 
712.1   and sections 354.094 and 354A.091. 
712.2      Subd. 6a.  [EMPLOYMENT IN ANOTHER DISTRICT.] No A school 
712.3   board shall not be obligated to reinstate a teacher who takes a 
712.4   full-time or part-time position as a teacher in another 
712.5   Minnesota school district while on an extended leave of absence 
712.6   pursuant to this section.  This subdivision shall not apply to a 
712.7   teacher who is employed as a substitute teacher.  
712.8      Subd. 6b.  [SUPERINTENDENT.] A school board shall not be 
712.9   obligated to reinstate a superintendent on an extended leave of 
712.10  absence pursuant to this section to a position in the district.  
712.11     Subd. 8.  [BENEFITS.] A teacher on an extended leave of 
712.12  absence shall receive all of the health, accident, medical, 
712.13  surgical and hospitalization insurance or benefits, for both the 
712.14  teacher and the teacher's dependents, for which the teacher 
712.15  would otherwise be eligible if not on an extended leave,.  A 
712.16  teacher shall receive the coverage if such coverage is available 
712.17  from the school district's insurer, if the teacher requests the 
712.18  coverage, and if the teacher either (a) reimburses the district 
712.19  for the full amount of the premium necessary to maintain the 
712.20  coverage within one month following the district's payment of 
712.21  the premium, or (b) if the district is wholly or partially 
712.22  self-insured, pays the district, according to a schedule agreed 
712.23  upon by the teacher and the school board, an amount determined 
712.24  by the school board to be the amount that would be charged for 
712.25  the coverage chosen by the teacher if the school board purchased 
712.26  all health, accident, medical, surgical and hospitalization 
712.27  coverage for its teachers from an insurer.  
712.28     Sec. 61.  Minnesota Statutes 1996, section 125.611, is 
712.29  amended to read: 
712.30     125.611 [TEACHER EARLY RETIREMENT INCENTIVE PROGRAM.] 
712.31     Subdivision 1.  [CRITERIA.] For purposes of this section, 
712.32  "teacher" means a teacher as defined in section 125.03, 
712.33  subdivision 1, who:  
712.34     (a) is employed in a public elementary or secondary school 
712.35  in the state and 
712.36     (b) either 
713.1      (1)(i) has not less than at least 15 total years of 
713.2   full-time teaching service in elementary, secondary, and 
713.3   technical colleges, or at least 15 years of allowable service as 
713.4   defined in sections 354.05, subdivision 13; 354.092; 354.093; 
713.5   354.094; 354.53; 354.66; 354A.011, subdivision 4; 354A.091; 
713.6   354A.092; 354A.093; 354A.094; or Laws 1982, chapter 578, article 
713.7   II, section 1 and 
713.8      (ii) has or will have attained the age of 55 years but less 
713.9   than 65 years as of the June 30 in the school year during which 
713.10  an application for an early retirement incentive is made, or 
713.11     (2) has not less than at least 30 total years of full-time 
713.12  teaching service in elementary, secondary, and technical 
713.13  colleges, or at least 30 years of allowable service as defined 
713.14  in sections 354.05, subdivision 13; 354.092; 354.093; 354.094; 
713.15  354.53; 354.66; 354A.011, subdivision 4; 354A.091; 354A.092; 
713.16  354A.093; 354A.094; or Laws 1982, chapter 578, article II, 
713.17  section 1. 
713.18     Subd. 2.  [RETIREMENT.] For purposes of this section, 
713.19  "retirement"  means termination of services in the employing 
713.20  district and withdrawal from active teaching service.  
713.21     Subd. 11.  [EMPLOYMENT AS SUBSTITUTE.] Notwithstanding the 
713.22  provisions of subdivision 2, a teacher who has entered into an 
713.23  agreement for termination of services and withdrawal from active 
713.24  teaching service with an early retirement incentive may be 
713.25  employed as a substitute teacher after retirement.  
713.26     Subd. 12.  [UNEMPLOYMENT INSURANCE.] Any amount of 
713.27  unemployment insurance that the teacher receives and for which 
713.28  the district is required to pay into the reemployment insurance 
713.29  fund pursuant to section 268.06, subdivision 25, may be deducted 
713.30  by the district from the amount of the teacher's early 
713.31  retirement incentive or recovered by the district from the 
713.32  teacher up to the amount of the early retirement incentive.  
713.33     Subd. 13.  [APPLICATIONS.] A teacher meeting the 
713.34  requirements of subdivision 1 may apply to the school board of 
713.35  the employing district for a contract for termination of 
713.36  services, withdrawal from active teaching service, and payment 
714.1   of an early retirement incentive.  This application shall must 
714.2   be submitted on or before February 1 of the school year at the 
714.3   end of which the teacher wishes to retire.  A school board shall 
714.4   must approve or deny the application within 30 days after it is 
714.5   received by the board.  The amount of the early retirement 
714.6   incentive shall be agreed upon between the teacher and the 
714.7   school board.  The early retirement incentive shall be paid by 
714.8   the employing district at the time and in the manner mutually 
714.9   agreed upon by a teacher and the board.  
714.10     Sec. 62.  Minnesota Statutes 1996, section 125.62, 
714.11  subdivision 2, is amended to read: 
714.12     Subd. 2.  [APPLICATION.] To obtain a joint grant, a joint 
714.13  application shall must be submitted to the state board of 
714.14  education.  The application must be developed with the 
714.15  participation of the parent advisory committee, established 
714.16  according to section 126.51, and the Indian advisory committee 
714.17  at the post-secondary institution.  The joint application shall 
714.18  set forth: 
714.19     (1) the in-kind, coordination, and mentorship services to 
714.20  be provided by the post-secondary institution; and 
714.21     (2) the coordination and mentorship services to be provided 
714.22  by the school district. 
714.23     Sec. 63.  Minnesota Statutes 1996, section 125.62, 
714.24  subdivision 3, is amended to read: 
714.25     Subd. 3.  [REVIEW AND COMMENT.] The state board shall must 
714.26  submit the joint application to the Minnesota Indian scholarship 
714.27  committee for review and comment. 
714.28     Sec. 64.  Minnesota Statutes 1996, section 125.62, 
714.29  subdivision 7, is amended to read: 
714.30     Subd. 7.  [LOAN FORGIVENESS.] The loan may be forgiven if 
714.31  the recipient is employed as a teacher, as defined in section 
714.32  125.12 or 125.17, in an eligible school or program in 
714.33  Minnesota.  One-fourth of the principal of the outstanding loan 
714.34  amount shall be forgiven for each year of eligible employment, 
714.35  or a pro rata amount for eligible employment during part of a 
714.36  school year, part-time employment as a substitute teacher, or 
715.1   other eligible part-time teaching.  Loans for $2,500 or less may 
715.2   be forgiven at the rate of up to $1,250 per year.  The following 
715.3   schools and programs are eligible for the purposes of loan 
715.4   forgiveness: 
715.5      (1) a school or program operated by a school district; 
715.6      (2) a tribal contract school eligible to receive aid 
715.7   according to section 124.86; 
715.8      (3) a head start program; 
715.9      (4) an early childhood family education program; 
715.10     (5) a program providing educational services to children 
715.11  who have not entered kindergarten; or 
715.12     (6) a program providing educational enrichment services to 
715.13  American Indian students in grades kindergarten through 12. 
715.14     If a person has an outstanding loan obtained through this 
715.15  program, the duty to make payments of principal and interest may 
715.16  be deferred during any time period the person is enrolled at 
715.17  least one-half time in an advanced degree program in a field 
715.18  that leads to employment by a school district.  To defer loan 
715.19  obligations, the person shall provide written notification to 
715.20  the state board of education and the recipients of the joint 
715.21  grant that originally authorized the loan.  Upon approval by the 
715.22  state board and the joint grant recipients, payments shall be 
715.23  deferred.  
715.24     The higher education services office shall approve the loan 
715.25  forgiveness program, loan deferral, and procedures to administer 
715.26  the program shall be approved by the higher education services 
715.27  office. 
715.28     Sec. 65.  Minnesota Statutes 1996, section 125.623, 
715.29  subdivision 3, is amended to read: 
715.30     Subd. 3.  [PROGRAM REQUIREMENTS.] (a) A grant recipient 
715.31  shall must recruit persons of color to be teachers in 
715.32  elementary, secondary, early childhood or parent education, and 
715.33  provide support in linking program participants with jobs in the 
715.34  recipient's school district. 
715.35     (b) A grant recipient shall must establish an advisory 
715.36  council composed of representatives of communities of color. 
716.1      (c) A grant recipient, with the assistance of the advisory 
716.2   council, shall must recruit high school students and other 
716.3   persons, including educational paraprofessionals, support them 
716.4   through the higher education application and admission process, 
716.5   advise them while enrolled and link them with support resources 
716.6   in the college or university and the community. 
716.7      (d) A grant recipient shall must award stipends to students 
716.8   of color enrolled in an approved licensure program to help cover 
716.9   the costs of tuition, student fees, supplies, and books.  
716.10  Stipend awards must be based on a student's financial need and 
716.11  students must apply for any additional financial aid they are 
716.12  eligible for to supplement this program.  No more than ten 
716.13  percent of the grant may be used for costs of administering the 
716.14  program.  Students must agree to teach in the grantee school 
716.15  district for at least two years after licensure.  If the 
716.16  district has no licensed positions open, the student may teach 
716.17  in another district in Minnesota. 
716.18     (e) The commissioner of children, families, and learning 
716.19  shall consider the following criteria in awarding grants: 
716.20     (1) whether the program is likely to increase the 
716.21  recruitment and retention of students of color in teaching; 
716.22     (2) whether grant recipients will recruit paraprofessionals 
716.23  from the district to work in its schools; and 
716.24     (3) whether grant recipients will establish or have a 
716.25  mentoring program for students of color. 
716.26     Sec. 66.  Minnesota Statutes 1996, section 125.80, is 
716.27  amended to read: 
716.28     125.80 [TEACHER LUNCH PERIOD.] 
716.29     Each teacher shall must be provided with a duty-free lunch 
716.30  period, scheduled according to school board policy or negotiated 
716.31  agreement. 
716.32     Sec. 67.  [REPEALER.] 
716.33     Minnesota Statutes 1996, sections 125.70; 125.701; 125.702; 
716.34  125.703; 125.704; and 125.705, are repealed. 
716.35                             ARTICLE 9
716.36                            CHAPTER 126
717.1                   STUDENTS AND SCHOOL ENVIRONMENT
717.2      Section 1.  Minnesota Statutes 1996, section 126.05, is 
717.3   amended to read: 
717.4      126.05 [TEACHER TRAINING, EFFECTS OF DRUGS AND ALCOHOL.] 
717.5      All educational institutions providing teacher education 
717.6   shall must offer a program in the personal use and misuse of and 
717.7   dependency on tobacco, alcohol, drugs and other chemicals, and. 
717.8   Every student attending such institution educational 
717.9   institutions in preparation for teaching service shall be 
717.10  required to take and to satisfactorily complete such a program.  
717.11  Every student who graduates after June, 1974, shall complete 
717.12  such a course.  
717.13     Sec. 2.  Minnesota Statutes 1996, section 126.14, is 
717.14  amended to read: 
717.15     126.14 [UNITED STATES FLAG.] 
717.16     Subdivision 1.  [DISPLAYED BY SCHOOLS.] There shall be 
717.17  displayed at Every public school in Minnesota when in session 
717.18  must display an appropriate United States flag when in session.  
717.19  Such display The flag shall be displayed upon the school grounds 
717.20  or outside the school building, upon on a proper staff, on every 
717.21  legal holiday occurring during the school term and at such other 
717.22  times as the respective boards board of such districts the 
717.23  district may direct and.  The flag must be displayed within the 
717.24  principal rooms of such the school building at all other times 
717.25  while the same school is in session. 
717.26     Subd. 2.  [SCHOOL BOARDS TO PROVIDE FLAGS AND STAFFS.] It 
717.27  shall be the duty of each The board to must provide such the 
717.28  flag for each of the school buildings of in their respective 
717.29  districts, together with a suitable staff for the to display 
717.30  thereof the flag outside of such the school building and proper 
717.31  arrangement for the to display thereof within such the flag in 
717.32  the building, and a suitable receptacle for the safekeeping 
717.33  of such the flag when not in use, as by this section directed, 
717.34  at all times.  
717.35     Sec. 3.  Minnesota Statutes 1996, section 126.1995, is 
717.36  amended to read: 
718.1      126.1995 [SAFETY REQUIREMENT GUIDELINES.] 
718.2      The department of children, families, and learning, in 
718.3   cooperation with the Minnesota fire marshal's division, shall 
718.4   must develop guidelines for school lab safety.  The guidelines 
718.5   shall include a list of safety requirements and an explanation 
718.6   of the minimum state and national laws, codes, and standards 
718.7   affecting school lab safety the Minnesota fire marshal considers 
718.8   necessary for schools to implement.  The district superintendent 
718.9   must shall ensure that every school lab within the district 
718.10  complies with the school lab safety requirements.  Lack of 
718.11  funding is not an excuse for noncompliance. 
718.12     Sec. 4.  [REPEALER.] 
718.13     Minnesota Statutes 1996, sections 126.113; 126.115; 126.12; 
718.14  126.13; 126.15; 126.151; 126.20; 126.202; 126.21; 126.22; 
718.15  126.23; 126.235; 126.237; 126.239; 126.261; 126.262; 126.264; 
718.16  126.265; 126.266; 126.267; 126.269; 126.36; 126.43; 126.45; 
718.17  126.46; 126.47; 126.48; 126.49; 126.50; 126.501; 126.51; 126.52; 
718.18  126.531; 126.54; 126.55; 126.56; 126.681; 126.69; 126.699; 
718.19  126.70; 126.72; 126.77; 126.78; 126.82; and 126.84, are repealed.
718.20                             ARTICLE 10 
718.21                            CHAPTER 129C 
718.22     Section 1.  Minnesota Statutes 1996, section 129C.10, 
718.23  subdivision 3, is amended to read: 
718.24     Subd. 3.  [POWERS AND DUTIES OF BOARD.] (a) The board has 
718.25  the powers necessary for the care, management, and control of 
718.26  the Lola and Rudy Perpich Minnesota center for arts education 
718.27  and all its real and personal property.  The powers shall 
718.28  include, but are not limited to, those listed in this 
718.29  subdivision. 
718.30     (b) The board may employ and discharge necessary employees, 
718.31  and contract for other services to ensure the efficient 
718.32  operation of the center for arts education. 
718.33     (c) The board may receive and award grants.  The board may 
718.34  establish a charitable foundation and accept, in trust or 
718.35  otherwise, any gift, grant, bequest, or devise for educational 
718.36  purposes and hold, manage, invest, and dispose of them and the 
719.1   proceeds and income of them according to the terms and 
719.2   conditions of the gift, grant, bequest, or devise and its 
719.3   acceptance.  The board shall must adopt internal procedures to 
719.4   administer and monitor aids and grants. 
719.5      (d) The board may establish or coordinate evening, 
719.6   continuing education, extension, and summer programs for 
719.7   teachers and pupils. 
719.8      (e) The board may identify pupils who have artistic talent, 
719.9   either demonstrated or potential, in dance, literary arts, media 
719.10  arts, music, theater, and visual arts, or in more than one art 
719.11  form. 
719.12     (f) The board shall must educate pupils with artistic 
719.13  talent by providing:  
719.14     (1) an interdisciplinary academic and arts program for 
719.15  pupils in the 11th and 12th grades.  The total number of pupils 
719.16  accepted under this clause and clause (2) shall not exceed 300; 
719.17     (2) additional instruction to pupils for a 13th grade. 
719.18  Pupils eligible for this instruction are those enrolled in 12th 
719.19  grade who need extra instruction and who apply to the board, or 
719.20  pupils enrolled in the 12th grade who do not meet learner 
719.21  outcomes established by the board.  Criteria for admission into 
719.22  the 13th grade shall not be subject to chapter 14; 
719.23     (3) intensive arts seminars for one or two weeks for pupils 
719.24  in grades 9 to 12; 
719.25     (4) summer arts institutes for pupils in grades 9 to 12; 
719.26     (5) artist mentor and extension programs in regional sites; 
719.27  and 
719.28     (6) teacher education programs for indirect curriculum 
719.29  delivery. 
719.30     (g) The board may determine the location for the Lola and 
719.31  Rudy Perpich Minnesota center for arts education and any 
719.32  additional facilities related to the center, including the 
719.33  authority to lease a temporary facility. 
719.34     (h) The board must plan for the enrollment of pupils on an 
719.35  equal basis from each congressional district.  
719.36     (i) The board may establish task forces as needed to advise 
720.1   the board on policies and issues.  The task forces expire as 
720.2   provided in section 15.059, subdivision 6.  
720.3      (j) The board may request the commissioner of children, 
720.4   families, and learning for assistance and services. 
720.5      (k) The board may enter into contracts with other public 
720.6   and private agencies and institutions for residential and 
720.7   building maintenance services if it determines that these 
720.8   services could be provided more efficiently and less expensively 
720.9   by a contractor than by the board itself.  The board may also 
720.10  enter into contracts with public or private agencies and 
720.11  institutions, school districts or combinations of school 
720.12  districts, or service cooperatives to provide supplemental 
720.13  educational instruction and services. 
720.14     (l) The board may provide or contract for services and 
720.15  programs by and for the center for arts education, including a 
720.16  store, operating in connection with the center; theatrical 
720.17  events; and other programs and services that, in the 
720.18  determination of the board, serve the purposes of the center. 
720.19     (m) The board may provide for transportation of pupils to 
720.20  and from the center for arts education for all or part of the 
720.21  school year, as the board considers advisable and subject to its 
720.22  rules.  Notwithstanding any other law to the contrary, the board 
720.23  may charge a reasonable fee for transportation of pupils.  Every 
720.24  driver providing transportation of pupils under this paragraph 
720.25  must possess all qualifications required by the state board of 
720.26  education.  The board may contract for furnishing authorized 
720.27  transportation under rules established by the commissioner of 
720.28  children, families, and learning and may purchase and furnish 
720.29  gasoline to a contract carrier for use in the performance of a 
720.30  contract with the board for transportation of pupils to and from 
720.31  the center for arts education.  When transportation is provided, 
720.32  scheduling of routes, establishment of the location of bus 
720.33  stops, the manner and method of transportation, the control and 
720.34  discipline of pupils, and any other related matter is within the 
720.35  sole discretion, control, and management of the board. 
720.36     (n) The board may provide room and board for its pupils.  
721.1   If the board provides room and board, it shall charge a 
721.2   reasonable fee for the room and board.  The fee is not subject 
721.3   to chapter 14 and is not a prohibited fee according to sections 
721.4   120.71 to 120.76. 
721.5      (o) The board may establish and set fees for services and 
721.6   programs without regard to chapter 14.  If the board sets fees 
721.7   not authorized or prohibited by the Minnesota public school fee 
721.8   law, it may do so without complying with the requirements of 
721.9   section 120.75, subdivision 1. 
721.10     Sec. 2.  Minnesota Statutes 1996, section 129C.10, 
721.11  subdivision 3a, is amended to read: 
721.12     Subd. 3a.  [CENTER ACCOUNT.] There is established in the 
721.13  state treasury A center for arts education account is 
721.14  established in the special revenue fund in the state treasury.  
721.15  All money collected by the board, including rental income, shall 
721.16  must be deposited in the account.  Money in the account, 
721.17  including interest earned, is appropriated to the board for the 
721.18  operation of its services and programs. 
721.19     Sec. 3.  Minnesota Statutes 1996, section 129C.10, 
721.20  subdivision 3b, is amended to read: 
721.21     Subd. 3b.  [APPEAL.] A parent who disagrees with a board 
721.22  action that adversely affects the academic program of an 
721.23  enrolled pupil may appeal the board's action to the commissioner 
721.24  of children, families, and learning within 30 days of the 
721.25  board's action.  The decision of the commissioner shall be 
721.26  binding on the board.  The board shall must inform each pupil 
721.27  and parent at the time of enrolling of a parent's right to 
721.28  appeal a board action affecting the pupil's academic program. 
721.29     Sec. 4.  Minnesota Statutes 1996, section 129C.10, 
721.30  subdivision 4, is amended to read: 
721.31     Subd. 4.  [EMPLOYEES.] (a)(1) The board shall must appoint 
721.32  a director of the center for arts education who shall serve in 
721.33  the unclassified service. 
721.34     (2) The board shall must employ, upon recommendation of the 
721.35  director, a coordinator of resource programs who shall serve in 
721.36  the unclassified service. 
722.1      (3) The board shall must employ, upon recommendation of the 
722.2   director, up to six department chairs who shall serve in the 
722.3   unclassified service.  The chairs shall be licensed teachers 
722.4   unless no licensure exists for the subject area or discipline 
722.5   for which the chair is hired. 
722.6      (4) The board may employ other necessary employees, upon 
722.7   recommendation of the director. 
722.8      (5) The board shall must employ, upon recommendation of the 
722.9   director, an executive secretary for the director, who shall 
722.10  serve in the unclassified service. 
722.11     (b) The employees hired under this subdivision and other 
722.12  necessary employees hired by the board shall be state employees 
722.13  in the executive branch. 
722.14     Sec. 5.  Minnesota Statutes 1996, section 129C.10, 
722.15  subdivision 6, is amended to read: 
722.16     Subd. 6.  [PUBLIC POST-SECONDARY INSTITUTIONS; PROVIDING 
722.17  SPACE.] Public post-secondary institutions shall must provide 
722.18  space for programs offered by the Lola and Rudy Perpich 
722.19  Minnesota center for arts education at no cost or reasonable 
722.20  cost to the center to the extent that space is available at the 
722.21  public post-secondary institutions. 
722.22     Sec. 6.  Minnesota Statutes 1996, section 129C.15, is 
722.23  amended to read: 
722.24     129C.15 [RESOURCE, MAGNET, AND OUTREACH PROGRAMS.] 
722.25     Subdivision 1.  [RESOURCE AND OUTREACH.] The center 
722.26  shall must offer resource and outreach programs and services 
722.27  statewide aimed at the enhancement of arts education 
722.28  opportunities for pupils in elementary and secondary school.  
722.29  The programs and services shall must include: 
722.30     (1) developing and demonstrating exemplary curriculum, 
722.31  instructional practices, and assessment; 
722.32     (2) disseminating information; and 
722.33     (3) providing programs for pupils and teachers that develop 
722.34  technical and creative skills in art forms that are 
722.35  underrepresented and in geographic regions that are underserved. 
722.36     Subd. 2.  [MAGNET PROGRAMS.] The center shall must identify 
723.1   at least one school district in each congressional district with 
723.2   interest and the potential to offer magnet arts programs using 
723.3   the curriculum developed by the Lola and Rudy Perpich Minnesota 
723.4   center for arts education. 
723.5      Subd. 3.  [CENTER RESPONSIBILITIES.] The center shall must: 
723.6      (1) provide information and technical services to arts 
723.7   teachers, professional arts organizations, school districts, and 
723.8   the department of children, families, and learning; 
723.9      (2) gather and conduct research in arts education; 
723.10     (3) design and promote arts education opportunities for all 
723.11  Minnesota pupils in elementary and secondary schools; and 
723.12     (4) serve as liaison for the department of children, 
723.13  families, and learning to national organizations for arts 
723.14  education. 
723.15     Sec. 7.  [129C.20] [MATERIALS, TRAINING, AND ASSISTANCE.] 
723.16     The Lola and Rudy Perpich Minnesota center for arts 
723.17  education, in cooperation with the Minnesota alliance for arts 
723.18  in education and the Minnesota state arts board must provide 
723.19  materials, training, and assistance to the arts education 
723.20  committees in the school districts.  The center may contract 
723.21  with the Minnesota alliance for arts in education for its 
723.22  involvement in providing services, including staff assistance, 
723.23  to the program. 
723.24                             ARTICLE 11 
723.25                             REPEALERS 
723.26     Section 1.  [REPEALER.] 
723.27     (a) Minnesota Statutes 1996, sections 124.01; 124.06; 
723.28  124.07; 124.078; 124.079; 124.08; 124.09; 124.10; 124.12; 
723.29  124.14; 124.15; 124.155; 124.17; 124.175; 124.177; 124.18; 
723.30  124.19; 124.193; 124.195; 124.196; 124.2131; 124.2134; 124.2139; 
723.31  124.214; 124.223; 124.225; 124.226; 124.227; 124.239; 124.242; 
723.32  124.2442; 124.2445; 124.245; 124.2455; 124.248; 124.255; 124.26; 
723.33  124.2601; 124.2605; 124.261; 124.2613; 124.2615; 124.2711; 
723.34  124.2712; 124.2713; 124.2714; 124.2715; 124.2716; 124.2725; 
723.35  124.2726; 124.2727; 124.2728; 124.273; 124.276; 124.278; 
723.36  124.311; 124.312; 124.313; 124.314; 124.32; 124.3201; 124.3202; 
724.1   124.321; 124.322; 124.323; 124.35; 124.36; 124.37; 124.38; 
724.2   124.381; 124.39; 124.40; 124.41; 124.42; 124.431; 124.44; 
724.3   124.45; 124.46; 124.472; 124.473; 124.474; 124.476; 124.477; 
724.4   124.478; 124.479; 124.48; 124.481; 124.491; 124.492; 124.493; 
724.5   124.494; 124.4945; 124.4946; 124.495; 124.511; 124.573; 124.574; 
724.6   124.625; 124.63; 124.646; 124.6462; 124.6469; 124.647; 124.6471; 
724.7   124.6472; 124.648; 124.71; 124.72; 124.73; 124.74; 124.75; 
724.8   124.755; 124.76; 124.82; 124.829; 124.83; 124.84; 124.85; 
724.9   124.86; 124.90; 124.91; 124.912; 124.914; 124.916; 124.918; 
724.10  124.95; 124.961; and 124.97, are repealed. 
724.11     (b) Minnesota Statutes 1996, sections 124A.02; 124A.029; 
724.12  124A.03; 124A.0311; 124A.032; 124A.034; 124A.035; 124A.036; 
724.13  124A.04; 124A.22; 124A.225; 124A.23; 124A.24; 124A.26; 124A.28; 
724.14  124A.29; 124A.291; 124A.292; 124A.30; 124A.31; 124A.697; 
724.15  124A.698; 124A.70; 124A.71; 124A.711; 124A.72; and 124A.73, are 
724.16  repealed. 
724.17     (c) Minnesota Statutes 1996, sections 124C.07; 124C.08; 
724.18  124C.09; 124C.10; 124C.11; 124C.12; 124C.41; 124C.45; 124C.46; 
724.19  124C.47; 124C.48; 124C.49; 124C.498; 124C.55; 124C.56; 124C.57; 
724.20  124C.58; 124C.60; 124C.71; 124C.72; 124C.73 124C.74; and 
724.21  124C.77, are repealed. 
724.22     (d) Minnesota Statutes 1996, sections 126A.01; and 126A.06, 
724.23  are repealed. 
724.24     (e) Minnesota Statutes 1996, sections 126B.01; 126B.03; 
724.25  126B.06; and 126B.10, are repealed. 
724.26     (f) Minnesota Statutes 1996, sections 127.01; 127.02; 
724.27  127.03; 127.04; 127.05; 127.06; 127.08; 127.09; 127.10; 127.11; 
724.28  127.12; 127.13; 127.15; 127.16; 127.17; 127.19; 127.20; 127.21; 
724.29  127.23; 127.25; 127.26; 127.27; 127.28; 127.281; 127.282; 
724.30  127.29; 127.30; 127.31; 127.311; 127.32; 127.33; 127.34; 127.35; 
724.31  127.36; 127.37; 127.38; 127.39; 127.40; 127.41; 127.411; 
724.32  127.412; 127.413; 127.42; 127.43; 127.44; 127.45; 127.455; 
724.33  127.46; 127.47; and 127.48, are repealed.  
724.34     Sec. 2.  [REVISOR INSTRUCTION.] 
724.35     (a) If a provision of a section of Minnesota Statutes 
724.36  amended by this act is amended by the 1997 regular session, the 
725.1   revisor shall codify the amendment consistent with the 
725.2   recodification of the affected section by this act, 
725.3   notwithstanding any law to the contrary. 
725.4      (b) In the next and subsequent editions of Minnesota 
725.5   Statutes, the revisor shall correct all cross-references to 
725.6   sections renumbered, recodified, or repealed by this act. 
725.7      Sec. 3.  [EFFECTIVE DATE.] 
725.8      This act is effective August 1, 2000.