Minnesota Legislature
HF 2874
4th Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to education; kindergarten through grade 12; 1.3 providing for general education; special education; 1.4 interagency services and lifelong learning; facilities 1.5 and organization; policies promoting academic 1.6 excellence; education policy issues; libraries; state 1.7 agencies; appropriating money; amending Minnesota 1.8 Statutes 1996, sections 43A.17, subdivisions 9 and 10; 1.9 120.03, subdivision 1; 120.06, subdivision 2a; 1.10 120.064, subdivisions 5 and 11; 120.101, subdivisions 1.11 3 and 6; 120.17, subdivisions 1, 2, 3, 3a, 3b, 6, 7, 1.12 9, and 15; 120.1701, subdivisions 2, 5, 11, and 17; 1.13 120.173, subdivisions 1 and 6; 120.73, subdivision 1; 1.14 121.1115, by adding subdivisions; 121.908, 1.15 subdivisions 2 and 3; 122.23, subdivision 6; 123.35, 1.16 subdivision 19a; 123.39, subdivision 1, and by adding 1.17 a subdivision; 123.935, subdivisions 1 and 2; 124.078; 1.18 124.14, subdivision 7, and by adding a subdivision; 1.19 124.17, subdivision 2, and by adding a subdivision; 1.20 124.248, subdivisions 1 and 1a; 124.2713, subdivision 1.21 6a; 124.273, by adding a subdivision; 124.32, by 1.22 adding a subdivision; 124.323, by adding a 1.23 subdivision; 124.646, subdivision 4; 124.755, 1.24 subdivision 1; 124.95, subdivision 6; 124A.03, 1.25 subdivisions 2b and 3c; 124A.034, subdivision 2; 1.26 124A.036, subdivisions 1a, 4, 6, and by adding a 1.27 subdivision; 124A.22, by adding a subdivision; 1.28 124A.292, subdivision 3; 124A.30; 124C.45, subdivision 1.29 2; 124C.47; 124C.48, by adding a subdivision; 125.191; 1.30 126.12, subdivision 1; 126.237; 127.27, subdivisions 2 1.31 and 4; 256B.0625, subdivision 26; 260.015, subdivision 1.32 19; 260.132, subdivision 4; and 471.895, subdivision 1.33 1; Minnesota Statutes 1997 Supplement, sections 1.34 120.101, subdivision 5; 120.1701, subdivision 3; 1.35 120.181; 121.11, subdivision 7c; 121.1113, subdivision 1.36 1; 121.904, subdivision 4a; 124.17, subdivisions 1d, 1.37 6, and 7; 124.248, subdivisions 2a and 6; 124.2601, 1.38 subdivisions 3 and 6; 124.2711, subdivision 2a; 1.39 124.2713, subdivision 6; 124.3111, subdivisions 2 and 1.40 3; 124.3201, subdivisions 1, 2, and 4; 124.6475; 1.41 124.648, subdivision 3; 124.91, subdivisions 1 and 5; 1.42 124.916, subdivision 2; 124A.036, subdivision 5; 1.43 124A.22, subdivisions 1 and 11; 124A.23, subdivision 1.44 1; 124A.28, subdivisions 1 and 1a; 124C.46, 1.45 subdivisions 1 and 2; 126.79, subdivisions 3, 6, 7, 8, 1.46 and 9; 127.27, subdivisions 10 and 11; 127.281; 2.1 127.31, subdivision 15; 127.32; 127.36, subdivision 1; 2.2 and 127.38; Laws 1992, chapter 499, article 7, section 2.3 31; Laws 1997, First Special Session chapter 4, 2.4 article 1, section 58; article 1, section 61, 2.5 subdivision 3; article 2, section 51, subdivisions 2, 2.6 4, 5, and 29; article 3, section 23, by adding a 2.7 subdivision; article 3, section 25, subdivisions 2 and 2.8 4; article 4, section 35, subdivision 9; article 5, 2.9 section 24, subdivision 4; article 5, section 28, 2.10 subdivisions 4, 9, and 12; article 6, section 20, 2.11 subdivision 4; article 8, section 4, subdivision 3; 2.12 article 9, section 11; article 9, section 12, 2.13 subdivision 8; article 10, section 3, subdivision 2; 2.14 article 10, section 4; and article 10, section 5; 2.15 proposing coding for new law in Minnesota Statutes, 2.16 chapters 120; 121; 124; 124A; and 126; repealing 2.17 Minnesota Statutes 1996, sections 124.2713, 2.18 subdivision 6b; 124.647; 124A.292, subdivisions 2 and 2.19 4; 124A.697; 124A.698; 124A.70; 124A.71; 124A.711, 2.20 subdivision 1; 124A.72; and 124A.73; Minnesota 2.21 Statutes 1997 Supplement, sections 124.2601, 2.22 subdivisions 4 and 5; 124.912, subdivisions 2 and 3; 2.23 124A.711, subdivision 2; and 135A.081; Laws 1993, 2.24 chapter 146, article 5, section 20, as amended; Laws 2.25 1997, chapter 231, article 1, section 17; Minnesota 2.26 Rules, part 3525.2750, subpart 1, item B. 2.27 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.28 ARTICLE 1 2.29 GENERAL EDUCATION 2.30 Section 1. Minnesota Statutes 1997 Supplement, section 2.31 121.904, subdivision 4a, is amended to read: 2.32 Subd. 4a. [LEVY RECOGNITION.] (a) "School district tax 2.33 settlement revenue" means the current, delinquent, and 2.34 manufactured home property tax receipts collected by the county 2.35 and distributed to the school district, including distributions 2.36 made pursuant to section 279.37, subdivision 7, and excluding 2.37 the amount levied pursuant to section 124.914, subdivision 1. 2.38 (b) In June of each year, the school district shall 2.39 recognize as revenue, in the fund for which the levy was made, 2.40 the lesser of: 2.41 (1) the May, June, and July school district tax settlement 2.42 revenue received in that calendar year; or 2.43 (2) the sum of the state aids and credits enumerated in 2.44 section 124.155, subdivision 2, which are for the fiscal year 2.45 payable in that fiscal year plus an amount equal to the levy 2.46 recognized as revenue in June of the prior year plus 31 percent 2.47 of the amount of the levy certified in the prior calendar year 2.48 according to section 124A.03, subdivision 2; or 3.1 (3)(i)7.06.8 percent of the lesser of the amount of the 3.2 general education levy certified in the prior calendar year 3.3 according to section 124A.23, subdivision 2, or the difference 3.4 between the amount of the total general fund levy certified in 3.5 the prior calendar year and the sum of the amounts certified in 3.6 the prior calendar year according to sections 124A.03, 3.7 subdivision 2; 124.315, subdivision 4; 124.912, subdivisions 1, 3.8 paragraph (2), 2, and 3; 124.916, subdivisions 1, 2, and 3, 3.9 paragraphs (4), (5), and (6); and 124.918, subdivision 6; plus 3.10 (ii) 31 percent of the referendum levy certified in the 3.11 prior calendar year according to section 124A.03, subdivision 2; 3.12 plus 3.13 (iii) the entire amount of the levy certified in the prior 3.14 calendar year according to sections 124.315, subdivision 4; 3.15 124.912, subdivisions 1, paragraph (2), 2, and 3; 124.916, 3.16 subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 3.17 124.918, subdivision 6. 3.18 (c) In July of each year, the school district shall 3.19 recognize as revenue that portion of the school district tax 3.20 settlement revenue received in that calendar year and not 3.21 recognized as revenue for the previous fiscal year pursuant to 3.22 clause (b). 3.23 (d) All other school district tax settlement revenue shall 3.24 be recognized as revenue in the fiscal year of the settlement. 3.25 Portions of the school district levy assumed by the state, 3.26 including prior year adjustments and the amount to fund the 3.27 school portion of the reimbursement made pursuant to section 3.28 273.425, shall be recognized as revenue in the fiscal year 3.29 beginning in the calendar year for which the levy is payable. 3.30 Sec. 2. Minnesota Statutes 1996, section 121.908, 3.31 subdivision 2, is amended to read: 3.32 Subd. 2. Each district shall submit to the commissioner by 3.33AugustSeptember 15 of each yearanunaudited financial 3.34statementdata for the preceding fiscal year. Thisstatement3.35 financial data shall be submittedon formsin the format 3.36 prescribed by the commissioner. 4.1 Sec. 3. Minnesota Statutes 1996, section 121.908, 4.2 subdivision 3, is amended to read: 4.3 Subd. 3. ByDecember 31November 30 of the calendar year 4.4 of the submission of the unaudited financialstatementdata, the 4.5 district shall provide to the commissionerand state auditor an4.6 audited financial data for the preceding fiscal year. An 4.7 audited financial statement prepared in a form which will allow 4.8 comparison with and correction of material differences in the 4.9 unauditedstatementfinancial data shall be submitted to the 4.10 commissioner and the state auditor by November 30. The audited 4.11 financial statement must also provide a statement of assurance 4.12 pertaining to uniform financial accounting and reporting 4.13 standards compliance and a copy of the management letter 4.14 submitted to the district by the school district's auditor. 4.15 Sec. 4. Minnesota Statutes 1996, section 123.39, 4.16 subdivision 1, is amended to read: 4.17 Subdivision 1. The board may provide for the 4.18 transportation of pupils to and from school and for any other 4.19 purpose. The board may also provide for the transportation of 4.20 pupils to schools in other districts for grades and departments 4.21 not maintained in the district, including high school, at the 4.22 expense of the district, when funds are available therefor and 4.23 if agreeable to the district to which it is proposed to 4.24 transport the pupils, for the whole or a part of the school 4.25 year, as it may deem advisable, and subject to its rules. In 4.26 any school district, the board shall arrange for the attendance 4.27 of all pupils living two miles or more from the school, except 4.28 pupils whose transportation privileges have been revoked under 4.29 section 123.805, subdivision 1, clause (6), or 123.7991, 4.30 paragraph (b), through suitable provision for transportation or 4.31 through the boarding and rooming of the pupils who may be more 4.32 economically and conveniently provided for by that 4.33 means. Arrangement for attendance may include a requirement 4.34 that the student's parent or guardian request transportation 4.35 services from the school district. The board shall provide 4.36 transportation to and from the home of a child with a disability 5.1 not yet enrolled in kindergarten when special instruction and 5.2 services under sections 120.17 and 120.1701 are provided in a 5.3 location other than in the child's home. When transportation is 5.4 provided, scheduling of routes, establishment of the location of 5.5 bus stops, manner and method of transportation, control and 5.6 discipline of school children and any other matter relating 5.7 thereto shall be within the sole discretion, control, and 5.8 management of the school board. The district may provide for 5.9 the transportation of pupils or expend a reasonable amount for 5.10 room and board of pupils whose attendance at school can more 5.11 economically and conveniently be provided for by that means or 5.12 who attend school in a building rented or leased by a district 5.13 within the confines of an adjacent district. 5.14 Sec. 5. Minnesota Statutes 1996, section 123.39, is 5.15 amended by adding a subdivision to read: 5.16 Subd. 1a. [VOLUNTARY SURRENDER OF TRANSPORTATION 5.17 PRIVILEGES.] The parent or guardian of a secondary student may 5.18 voluntarily surrender the secondary student's to and from school 5.19 transportation privileges granted under subdivision 1. A 5.20 district may reduce parking fees or offer other incentives to a 5.21 student who voluntarily waives these transportation privileges. 5.22 The school district shall inform each secondary student who has 5.23 voluntarily surrendered transportation privileges of the 5.24 location of the nearest school bus stop and establish a policy 5.25 allowing the student to ride the bus on an occasional basis. 5.26 The district must also establish a process to allow a student to 5.27 regain transportation privileges if the student's circumstances 5.28 change during the school year. 5.29 Sec. 6. Minnesota Statutes 1996, section 124.14, 5.30 subdivision 7, is amended to read: 5.31 Subd. 7. [APPROPRIATION TRANSFERS.] If a direct 5.32 appropriation from the general fund to the department of 5.33 children, families, and learning for any education aid or grant 5.34 authorized in this chapter and chapters 121, 123, 124A, 124C, 5.35 125, 126, and 134, excluding appropriations under sections 5.36 124.255, 124.26, 124.2601, 124.2605, 124.261, 124.2615, 6.1 124.2711, 124.2712, 124.2713, 124.2714, 124.2715, and 124.2716, 6.2 exceeds the amount required, the commissioner of children, 6.3 families, and learning may transfer the excess to any education 6.4 aid or grant appropriation that is insufficient. However, 6.5 section 124A.032 applies to a deficiency in the direct 6.6 appropriation for general education aid. Excess appropriations 6.7 shall be allocated proportionately among aids or grants that 6.8 have insufficient appropriations. The commissioner of finance 6.9 shall make the necessary transfers among appropriations 6.10 according to the determinations of the commissioner of children, 6.11 families, and learning. If the amount of the direct 6.12 appropriation for the aid or grant plus the amount transferred 6.13 according to this subdivision is insufficient, the commissioner 6.14 shall prorate the available amount among eligible districts. 6.15 The state is not obligated for any additional amounts. 6.16 Sec. 7. Minnesota Statutes 1996, section 124.14, is 6.17 amended by adding a subdivision to read: 6.18 Subd. 7a. [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 6.19 PROGRAMS.] If a direct appropriation from the general fund to 6.20 the department of children, families, and learning for an 6.21 education aid or grant authorized under section 124.255, 124.26, 6.22 124.2601, 124.2605, 124.261, 124.2615, 124.2711, 124.2712, 6.23 124.2713, 124.2714, 124.2715, or 124.2716 exceeds the amount 6.24 required, the commissioner of children, families, and learning 6.25 may transfer the excess to any education aid or grant 6.26 appropriation that is insufficiently funded under these sections. 6.27 Excess appropriations shall be allocated proportionately among 6.28 aids or grants that have insufficient appropriations. The 6.29 commissioner of finance shall make the necessary transfers among 6.30 appropriations according to the determinations of the 6.31 commissioner of children, families, and learning. If the amount 6.32 of the direct appropriation for the aid or grant plus the amount 6.33 transferred according to this subdivision is insufficient, the 6.34 commissioner shall prorate the available amount among eligible 6.35 districts. The state is not obligated for any additional 6.36 amounts. 7.1 Sec. 8. Minnesota Statutes 1997 Supplement, section 7.2 124.17, subdivision 1d, is amended to read: 7.3 Subd. 1d. [COMPENSATION REVENUE PUPIL UNITS.] Compensation 7.4 revenue pupil units for fiscal year 1998 and thereafter must be 7.5 computed according to this subdivision. 7.6 (a) The compensation revenue concentration percentage for 7.7 each building in a district equals the product of 100 times the 7.8 ratio of: 7.9 (1) the sum of the number of pupils enrolled in the 7.10 building eligible to receive free lunch plus one-half of the 7.11 pupils eligible to receive reduced priced lunch on October 1 of 7.12 the previous fiscal year; to 7.13 (2) the number of pupils enrolled in the building on 7.14 October 1 of the previous fiscal year. 7.15 (b) The compensation revenue pupil weighting factor for a 7.16 building equals the lesser of one or the quotient obtained by 7.17 dividing the building's compensation revenue concentration 7.18 percentage by 80.0. 7.19 (c) The compensation revenue pupil units for a building 7.20 equals the product of: 7.21 (1) the sum of the number of pupils enrolled in the 7.22 building eligible to receive free lunch and one-half of the 7.23 pupils eligible to receive reduced priced lunch on October 1 of 7.24 the previous fiscal year times the equity adjustment factor; 7.25 times 7.26 (2) the compensation revenue pupil weighting factor for the 7.27 building times the equity adjustment factor; times 7.28 (3) .60. 7.29 (d) For fiscal years 1999 and later, a district qualifies 7.30 for the equity adjustment factor if the district served more 7.31 than 5,000 pupils eligible to receive free or reduced price 7.32 lunch during the previous fiscal year and if the district's 7.33 percentage of pupils eligible to receive free or reduced price 7.34 lunch during the previous fiscal year is less than the statewide 7.35 average percentage for that year. The equity adjustment factor 7.36 equals the ratio of the statewide percentage of pupils eligible 8.1 to receive free or reduced price lunch during the previous 8.2 fiscal year to the district's percentage of pupils eligible to 8.3 receive free or reduced price lunch. 8.4 (e) Notwithstanding paragraphs (a) to (c), for charter 8.5 schools and contracted alternative programs in the first year of 8.6 operation, compensation revenue pupil units shall be computed 8.7 using data for the current fiscal year. If the charter school 8.8 or contracted alternative program begins operation after October 8.9 1, compensatory revenue pupil units shall be computed based on 8.10 pupils enrolled on an alternate date determined by the 8.11 commissioner, and the compensation revenue pupil units shall be 8.12 prorated based on the ratio of the number of days of student 8.13 instruction to 170 days. 8.14 (f) The percentages in this subdivision must be based on 8.15 the count of individual pupils and not on a building average or 8.16 minimum. 8.17 Sec. 9. Minnesota Statutes 1996, section 124.17, is 8.18 amended by adding a subdivision to read: 8.19 Subd. 5a. [BASIC SKILLS SUMMER SCHOOL PUPIL UNITS.] When a 8.20 pupil who has not passed an assessment of basic graduation 8.21 standards in reading, writing, or mathematics is enrolled in a 8.22 mastery of basic skills summer school program that is not a part 8.23 of the regular school term and the student has a total 8.24 enrollment time of more than 1,020 hours in a school year, the 8.25 pupil may be counted as more than one pupil in average daily 8.26 membership for purposes of this subdivision only. The amount in 8.27 excess of one pupil must be determined by the ratio of the 8.28 number of hours of instruction provided to that pupil in excess 8.29 of 1,020 hours. For each pupil, only the amount of summer 8.30 school enrollment time attributable to basic skills instruction 8.31 may be used to calculate the additional hours in the school 8.32 year. Basic skills instruction is defined as in Minnesota's 8.33 rules on graduation standards and includes reading, writing, and 8.34 mathematics. Hours that occur after the close of the 8.35 instructional year in June are attributable to the following 8.36 fiscal year. A pupil for whom payment is made under this 9.1 subdivision may be counted by a district only for the 9.2 computation of basic revenue, according to section 124A.22, 9.3 subdivision 2. 9.4 Sec. 10. Minnesota Statutes 1997 Supplement, section 9.5 124.17, subdivision 6, is amended to read: 9.6 Subd. 6. [FREE AND REDUCED PRICED LUNCHES.] The 9.7 commissioner shall determine the number of children eligible to 9.8 receive either a free or reduced priced lunch on October 1 each 9.9 year. Children enrolled in a building on October 1 and 9.10 determined to be eligible to receive free or reduced price lunch 9.11 by January 15 of the following year shall be counted as eligible 9.12 on October 1 for purposes of subdivision 1d. The commissioner 9.13 may use federal definitions for these purposes and may adjust 9.14 these definitions as appropriate. The commissioner may adopt 9.15 reporting guidelines to assure accuracy of data counts and 9.16 eligibility. Districts shall use any guidelines adopted by the 9.17 commissioner. 9.18 Sec. 11. Minnesota Statutes 1997 Supplement, section 9.19 124.17, subdivision 7, is amended to read: 9.20 Subd. 7. [LEP PUPIL UNITS.] (a) Limited English 9.21 proficiency pupil units for fiscal year 1998 and thereafter 9.22 shall be determined according to this subdivision. 9.23 (b) The limited English proficiency concentration 9.24 percentage for a district equals the product of 100 times the 9.25 ratio of: 9.26 (1) the number of pupils of limited English proficiency 9.27 enrolled in the district during the current fiscal year; to 9.28 (2) the number of pupils in average daily membership 9.29 enrolled in the district. 9.30 (c) The limited English proficiency pupil units for each 9.31 pupil enrolled in a program for pupils of limited English 9.32 proficiency in accordance with sections 126.261 to 126.269 9.33 equals the lesser of one or the quotient obtained by dividing 9.34 the limited English proficiency concentration percentage for the 9.35 pupil's district of enrollment by 11.5. 9.36 (d) Limited English proficiency pupil units shall be 10.1 counted by the district of enrollment. 10.2 (e) Notwithstanding paragraph (d), for the purposes of this 10.3 subdivision, pupils enrolled in a cooperative or intermediate 10.4 school district shall be counted by the district of residence. 10.5 Sec. 12. Minnesota Statutes 1996, section 124.248, 10.6 subdivision 1, is amended to read: 10.7 Subdivision 1. [GENERAL EDUCATION REVENUE.] General 10.8 education revenue shall be paid to a charter school as though it 10.9 were a school district. The general education revenue for each 10.10 pupil unit is the state average general education revenue per 10.11 pupil unit minus$170an amount equal to the product of the 10.12 formula allowance according to section 124A.22, subdivision 2, 10.13 times .0485, calculated withoutcompensatorybasic skills 10.14 revenue, transportation sparsity revenue, and the transportation 10.15 portion of the transition revenue adjustment, pluscompensatory10.16 basic skills revenue as though the school were a school district. 10.17 Sec. 13. Minnesota Statutes 1996, section 124.248, 10.18 subdivision 1a, is amended to read: 10.19 Subd. 1a. [TRANSPORTATION REVENUE.] Transportation revenue 10.20 shall be paid to a charter school that provides transportation 10.21 services according to section 120.064, subdivision 15, according 10.22 to this subdivision. Transportation aid shall equal 10.23 transportation revenue. 10.24(a)In addition to the revenue under subdivision 1, a 10.25 charter school providing transportation services shall receive 10.26 general education aid for each pupil unit equal to the sum of 10.27$170an amount equal to the product of the formula allowance 10.28 according to section 124A.22, subdivision 2, times .0485, plus 10.29 the transportation sparsity allowance for the school district in 10.30 which the charter school is located, plus the transportation 10.31 transition allowance for the school district in which the 10.32 charter school is located. 10.33(b) For the first two years that a charter school is10.34providing transportation services, the special programs10.35transportation revenue equals the charter school's actual cost10.36in the current school year for transportation services for11.1children with disabilities under section 124.223, subdivisions11.24, 5, 7, and 8. For the third year of transportation services11.3and later fiscal years, the special programs transportation11.4revenue shall be computed according to section 124.225,11.5subdivision 14.11.6 Sec. 14. Minnesota Statutes 1997 Supplement, section 11.7 124.248, subdivision 2a, is amended to read: 11.8 Subd. 2a. [BUILDING LEASE AID.] When a charter school 11.9 finds it economically advantageous to rent or lease a building 11.10 or land for any instructional purposes and it determines that 11.11 the total operating capital revenue under section 124A.22, 11.12 subdivision 10, is insufficient for this purpose, it may apply 11.13 to the commissioner for building lease aid for this purpose. 11.14 Criteria for aid approval and revenue uses shall be as defined 11.15 for the building lease levy in section 124.91, subdivision 1, 11.16 paragraphs (a) and (b). The amount of building lease aid per 11.17 pupil unit served for a charter school for any year shall not 11.18 exceed the lesser of (a) 80 percent of the approved cost or (b) 11.19 the product of theactualpupil units served for the current 11.20 school year times the sum of the state average debt redemption 11.21 fund revenue plus capital revenue, according to section 124.91, 11.22 peractualpupil unit served for the current fiscal year. 11.23 Sec. 15. Minnesota Statutes 1997 Supplement, section 11.24 124.248, subdivision 6, is amended to read: 11.25 Subd. 6. [START-UP COSTS.] During the first two years of a 11.26 charter school's operation, the charter school is eligible for 11.27 aid to pay for start-up costs and additional operating costs. 11.28 Start-up cost aid equals the greater of: 11.29 (1) $50,000 per charter school; or 11.30 (2) $500 times the charter school's pupil units served for 11.31 that year. 11.32 Sec. 16. Minnesota Statutes 1996, section 124.3201, 11.33 subdivision 5, is amended to read: 11.34 Subd. 5. [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] (a) 11.35 A school district's special education revenue for fiscal year 11.36 1996 and later equals the state total special education revenue, 12.1 minus the amount determined under paragraph (b), times the ratio 12.2 of the district's adjusted special education base revenue to the 12.3 state total adjusted special education base revenue. If the 12.4 state board of education modifies its rules for special 12.5 education in a manner that increases a school district's special 12.6 education obligations or service requirements, the commissioner 12.7 of children, families, and learning shall annually increase each 12.8 district's special education revenue by the amount necessary to 12.9 compensate for the increased service requirements. The 12.10 additional revenue equals the cost in the current year 12.11 attributable to rule changes not reflected in the computation of 12.12 special education base revenue, multiplied by the appropriate 12.13 percentages from subdivision 2. 12.14 (b) Notwithstanding paragraph (a), if the special education 12.15 base revenue for a district equals zero, the special education 12.16 revenue equals the amount computed according to subdivision 2 12.17 using current year data. 12.18 (c) If the state special education base revenue is not 12.19 known during the current year, the department of children, 12.20 families, and learning shall initially calculate school district 12.21 special education revenue based on 95 percent of the state total 12.22 special education revenue established in subdivision 4 until the 12.23 special education base revenue is known. 12.24 (d) Notwithstanding paragraphs (a), (b) and (c), if the 12.25 special education base revenue for a district is greater than 12.26 zero, and the base year amount for the district under 12.27 subdivision 2, paragraph (a), clause (7), equals zero, the 12.28 special education revenue equals the sum of the amount computed 12.29 according to paragraph (a), plus the amount computed according 12.30 to subdivision 2, paragraph (a), clause (7), using current year 12.31 data. 12.32 Sec. 17. Minnesota Statutes 1996, section 124A.03, 12.33 subdivision 2b, is amended to read: 12.34 Subd. 2b. [REFERENDUM DATE.] In addition to the referenda 12.35 allowed in subdivision 2, clause (a), the commissioner may 12.36 authorize a referendum for a different day. 13.1 (a) The commissioner may grant authority to a district to 13.2 hold a referendum on a different day if the district is in 13.3 statutory operating debt and has an approved plan or has 13.4 received an extension from the department to file a plan to 13.5 eliminate the statutory operating debt. 13.6 (b) The commissioner may grant authority for a district to 13.7 hold a referendum on a different day if: (1) the district will 13.8 conduct a bond election under chapter 475 on that same day; and 13.9 (2) the proceeds of the referendum will provide only additional 13.10 operating revenuenecessitated by the facilitycomplementing the 13.11 purpose for which bonding authority is sought. The commissioner 13.12 may only grant authority under this paragraph if the district 13.13 demonstrates to the commissioner's satisfaction that the 13.14 district's ability to operate the new facility or achieve 13.15 efficiencies with the purchases connected to the proceeds of the 13.16 bond sale will be significantly affected if the operating 13.17 referendum is not conducted until the November general 13.18 election. Authority under this paragraph expires November 30, 13.19 1998. 13.20 (c) The commissioner must approve, deny, or modify each 13.21 district's request for a referendum levy on a different day 13.22 within 60 days of receiving the request from a district. 13.23 Sec. 18. Minnesota Statutes 1996, section 124A.03, 13.24 subdivision 3c, is amended to read: 13.25 Subd. 3c. [REFERENDUM ALLOWANCE REDUCTION.] For fiscal 13.26 year 1998 and later, a district's referendum allowance for 13.27 referendum authority under subdivision 1c is reduced as provided 13.28 in this subdivision. 13.29 (a) For referendum revenue authority approved before June 13.30 1, 1996, and effective for fiscal year 1997, the reduction 13.31 equals the amount of the reduction computed for fiscal year 1997 13.32 under subdivision 3b. 13.33 (b) For referendum revenue authority approved before June 13.34 1, 1996, and effective beginning in fiscal year 1998, the 13.35 reduction equals the amount of the reduction computed for fiscal 13.36 year 1998 under subdivision 3b. 14.1 (c) For referendum revenue authority approved after May 31, 14.2 1996, there is no reduction. 14.3 (d) For districts with more than one referendum authority, 14.4 the reduction shall be computed separately for each authority. 14.5 The reduction shall be applied first to authorities levied 14.6 against tax capacity, and then to authorities levied against 14.7 referendum market value. For districts with more than one 14.8 authority levied against net tax capacity or against referendum 14.9 market value, the referendum allowance reduction shall be 14.10 applied first to the authority with the earliest expiration date. 14.11 (e) When referendum authority approved before June 1, 1996, 14.12 expires, the referendum allowance reduction for a district shall 14.13 be decreased by the amount of the decrease in the district's 14.14 total referendum allowance under subdivision 1c. For districts 14.15 with more than one referendum authority remaining after the 14.16 expiration, the amount of any remaining allowance reduction 14.17 shall be reallocated among the remaining referendum authority 14.18 approved before June 1, 1996, according to paragraph (d). 14.19 (f) For a newly reorganized district created after July 1, 14.20 1996, the referendum revenue reduction equals the lesser of the 14.21 amount calculated for the combined district, or the sum of the 14.22 amounts by which each of the reorganizing district's 14.23 supplemental revenue reduction exceeds its respective 14.24 supplemental revenue allowances calculated for the year 14.25 preceding the year of reorganization. 14.26 Sec. 19. Minnesota Statutes 1997 Supplement, section 14.27 124A.036, subdivision 5, is amended to read: 14.28 Subd. 5. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 14.29 education aid for districts must be adjusted for each pupil 14.30 attending a nonresident district under sections 120.062, 14.31 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22. 14.32 The adjustments must be made according to this subdivision. 14.33 (a) General education aid paid to a resident district must 14.34 be reduced by an amount equal to the general education revenue 14.35 exclusive ofcompensatorybasic skills revenue attributable to 14.36 the pupil in the resident district. 15.1 (b) General education aid paid to a district serving a 15.2 pupil in programs listed in this subdivision shall be increased 15.3 by an amount equal to the general education revenue exclusive of 15.4compensatorybasic skills revenue attributable to the pupil in 15.5 the nonresident district. 15.6 (c) If the amount of the reduction to be made from the 15.7 general education aid of the resident district is greater than 15.8 the amount of general education aid otherwise due the district, 15.9 the excess reduction must be made from other state aids due the 15.10 district. 15.11 (d) The district of residence shall pay tuition to a 15.12 district or an area learning center, operated according to 15.13 paragraph (e), providing special instruction and services to a 15.14 pupil with a disability, as defined in section 120.03, or a 15.15 pupil, as defined in section 120.181, who is enrolled in a 15.16 program listed in this subdivision. The tuition shall be equal 15.17 to (1) the actual cost of providing special instruction and 15.18 services to the pupil, including a proportionate amount for debt 15.19 service and for capital expenditure facilities and equipment, 15.20 and debt service but not including any amount for 15.21 transportation, minus (2) the amount of general education aid 15.22 and special education aid, attributable to that pupil, that is 15.23 received by the district providing special instruction and 15.24 services. 15.25 (e) An area learning center operated by a service 15.26 cooperative, intermediate district, education district, or a 15.27 joint powers cooperative may elect through the action of the 15.28 constituent boards to charge tuition for pupils rather than to 15.29 calculate general education aid adjustments under paragraph (a), 15.30 (b), or (c). The tuition must be equal to the greater of the 15.31 average general education revenue per pupil unit attributable to 15.32 the pupil, or the actual cost of providing the instruction, 15.33 excluding transportation costs, if the pupil meets the 15.34 requirements of section 120.03 or 120.181. 15.35 Sec. 20. Minnesota Statutes 1996, section 124A.036, 15.36 subdivision 6, is amended to read: 16.1 Subd. 6. [CHARTER SCHOOLS.] (a) The general education aid 16.2 for districts must be adjusted for each pupil attending a 16.3 charter school under section 120.064. The adjustments must be 16.4 made according to this subdivision. 16.5 (b) General education aid paid to a resident district must 16.6 be reduced by an amount equal to the general education revenue 16.7 exclusive ofcompensatorybasic skills revenue. 16.8 (c) General education aid paid to a district in which a 16.9 charter school not providing transportation according to section 16.10 120.064, subdivision 15, is located shall be increased by an 16.11 amount equal to the product of: (1) the sum of$170an amount 16.12 equal to the product of the formula allowance according to 16.13 section 124A.22, subdivision 2, times .0485, plus the 16.14 transportation sparsity allowance for the district, plus the 16.15 transportation transition allowance for the district; times (2) 16.16 the pupil units attributable to the pupil. 16.17 (d) If the amount of the reduction to be made from the 16.18 general education aid of the resident district is greater than 16.19 the amount of general education aid otherwise due the district, 16.20 the excess reduction must be made from other state aids due the 16.21 district. 16.22 Sec. 21. Minnesota Statutes 1997 Supplement, section 16.23 124A.22, subdivision 1, is amended to read: 16.24 Subdivision 1. [GENERAL EDUCATION REVENUE.](a) For fiscal16.25years 1997 and 1998, the general education revenue for each16.26district equals the sum of the district's basic revenue,16.27compensatory education revenue, secondary sparsity revenue,16.28elementary sparsity revenue, transportation sparsity revenue,16.29total operating capital revenue, transition revenue, and16.30supplemental revenue.16.31(b)For fiscal year 1999 and thereafter, the general 16.32 education revenue for each district equals the sum of the 16.33 district's basic revenue, basic skills revenue, training and 16.34 experience revenue, secondary sparsity revenue, elementary 16.35 sparsity revenue, transportation sparsity revenue, total 16.36 operating capital revenue, graduation standards implementation 17.1 revenue, transition revenue, and supplemental revenue. 17.2 Sec. 22. Minnesota Statutes 1996, section 124A.22, is 17.3 amended by adding a subdivision to read: 17.4 Subd. 14. [GRADUATION STANDARDS IMPLEMENTATION 17.5 REVENUE.] (a) A school district's graduation standards 17.6 implementation revenue is equal to $50 times its actual pupil 17.7 units for fiscal year 1999 plus $16 times its actual pupil units 17.8 for fiscal year 1999 if the district implements the graduation 17.9 rule under section 121.1114, paragraph (b), and $56 per pupil 17.10 unit for all districts for fiscal year 2000 and later. 17.11 Graduation standards implementation revenue is reserved and must 17.12 be used according to paragraphs (b) and (c). 17.13 (b) For fiscal year 1999, revenue must be reserved for 17.14 programs according to clauses (1) to (3). 17.15 (1) At least $20 per actual pupil unit plus $16 per actual 17.16 pupil unit for a district that implements the graduation rule 17.17 under section 121.1114, paragraph (b), must be allocated to 17.18 school sites in proportion to the number of students enrolled at 17.19 each school site weighted according to section 124.17, 17.20 subdivision 1, and is reserved for programs designed to enhance 17.21 the implementation of the graduation rule through intensive 17.22 staff development and decentralized decision making. 17.23 (2) At least $5 per actual pupil unit is reserved for 17.24 gifted and talented programs that are integrated with the 17.25 graduation rule. This aid must supplement, not supplant, money 17.26 spent on gifted and talented programs authorized under Laws 17.27 1997, First Special Session chapter 4, article 5, section 24. 17.28 (3) Any remaining aid under this paragraph must be used to 17.29 reduce class sizes to facilitate implementing the graduation 17.30 rule. 17.31 (c) For fiscal year 2000 and later, revenue must be 17.32 allocated to school sites and reserved for programs designed to 17.33 enhance the implementation of the graduation rule through: (1) 17.34 staff development programs; (2) gifted and talented programs; or 17.35 (3) class size reduction programs based at the school site. 17.36 At least $5 per actual pupil unit of the revenue received 18.1 under this paragraph must be used for gifted and talented 18.2 programs. 18.3 (d) To the extent possible, school districts shall make 18.4 opportunities for graduation standards implementation available 18.5 to teachers employed by intermediate school districts. If the 18.6 commissioner determines that the supplemental appropriation made 18.7 for this subdivision under section 40, subdivision 2, is in 18.8 excess of the amount needed for this subdivision, the 18.9 commissioner shall make equal payments of one-third of the 18.10 excess to each intermediate school district for the purpose of 18.11 paragraph (a). 18.12 Sec. 23. Minnesota Statutes 1997 Supplement, section 18.13 124A.23, subdivision 1, is amended to read: 18.14 Subdivision 1. [GENERAL EDUCATION TAX RATE.] The 18.15 commissioner shall establish the general education tax rate by 18.16 July 1 of each year for levies payable in the following year. 18.17 The general education tax capacity rate shall be a rate, rounded 18.18 up to the nearest hundredth of a percent, that, when applied to 18.19 the adjusted net tax capacity for all districts, raises the 18.20 amount specified in this subdivision. The general education tax 18.21 rate shall be the rate that raises$1,359,000,000 for fiscal18.22year 1998 and$1,385,500,000 for fiscal year 1999and, 18.23 $1,328,000,000 for fiscal year 2000, and $1,325,100,000 for 18.24 fiscal year 2001, and later fiscal years. The general education 18.25 tax rate may not be changed due to changes or corrections made 18.26 to a district's adjusted net tax capacity after the tax rate has 18.27 been established. If the levy target for fiscal year 1999 or 18.28 fiscal year 2000 is changed by another law enacted during the 18.29 1997 or 1998 session, the commissioner shall reduce the general 18.30 education levy target in thisbillsection by the amount of the 18.31 reduction in the enacted law. 18.32 Sec. 24. Minnesota Statutes 1997 Supplement, section 18.33 124A.28, subdivision 1, is amended to read: 18.34 Subdivision 1. [USE OF THE REVENUE.] The compensatory 18.35 education revenue under section 124A.22, subdivision 3, and the 18.36 portion of the transition revenue adjustment under section 19.1 124A.22, subdivision 13c, attributable to the compensatory 19.2 transition allowance under section 124A.22, subdivision 13b, 19.3 paragraph (b), must be used to meet the educational needs of 19.4 pupils whose progress toward meeting state or local content or 19.5 performance standards is below the level that is appropriate for 19.6 learners of their age. Any of the following may be provided to 19.7 meet these learners' needs: 19.8 (1) direct instructional services under the assurance of 19.9 mastery program according to section 124.3111; 19.10 (2) remedial instruction in reading, language arts, 19.11 mathematics, other content areas, or study skills to improve the 19.12 achievement level of these learners; 19.13 (3) additional teachers and teacher aides to provide more 19.14 individualized instruction to these learners through individual 19.15 tutoring, lower instructor-to-learner ratios, or team teaching; 19.16 (4) a longer school day or week during the regular school 19.17 year or through a summer program that may be offered directly by 19.18 the site or under a performance-based contract with a 19.19 community-based organization; 19.20 (5) comprehensive and ongoing staff development consistent 19.21 with district and site plans according to section 126.70, for 19.22 teachers, teacher aides, principals, and other personnel to 19.23 improve their ability to identify the needs of these learners 19.24 and provide appropriate remediation, intervention, 19.25 accommodations, or modifications; 19.26 (6) instructional materials and technology appropriate for 19.27 meeting the individual needs of these learners; 19.28 (7) programs to reduce truancy, encourage completion of 19.29 high school, enhance self-concept, provide health services, 19.30 provide nutrition services, provide a safe and secure learning 19.31 environment, provide coordination for pupils receiving services 19.32 from other governmental agencies, provide psychological services 19.33 to determine the level of social, emotional, cognitive, and 19.34 intellectual development, and provide counseling services, 19.35 guidance services, and social work services; 19.36 (8) bilingual programs, bicultural programs, and programs 20.1 for learners of limited English proficiency; 20.2 (9) all day kindergarten; 20.3 (10) extended school day and extended school year programs; 20.4 (11) substantial parent involvement in developing and 20.5 implementing remedial education or intervention plans for a 20.6 learner, including learning contracts between the school, the 20.7 learner, and the parent that establish achievement goals and 20.8 responsibilities of the learner and the learner's parent or 20.9 guardian; and 20.10 (12) other methods to increase achievement, as needed. 20.11 Sec. 25. Minnesota Statutes 1997 Supplement, section 20.12 124A.28, subdivision 1a, is amended to read: 20.13 Subd. 1a. [BUILDING ALLOCATION.] (a) For fiscal years 1999 20.14 and later, a district must allocaterevenueany increase in its 20.15 compensatory revenue over the amount of compensatory revenue 20.16 that would have been earned in fiscal year 1998, as calculated 20.17 under section 124A.22, subdivision 13b, paragraph (c), clause 20.18 (1), to each school building in the district where the children 20.19 who have generated the revenue are served. 20.20 (b) A district may allocate compensatory revenue not 20.21 otherwise allocated under paragraph (a) to school sites 20.22 according to a plan adopted by the school board. 20.23 (c) For the purposes of this section and section 124.17, 20.24 subdivision 1d, "building" means education site as defined in 20.25 section 123.951, subdivision 1. 20.26 (d) If the pupil is served at a site other than one owned 20.27 and operated by the district, the revenue shall be paid to the 20.28 district and used for services for pupils who generate the 20.29 revenue. 20.30 Sec. 26. Minnesota Statutes 1996, section 124A.30, is 20.31 amended to read: 20.32 124A.30 [STATEWIDE AVERAGE REVENUE.] 20.33 By October 1 of each year the commissioner shall estimate 20.34 the statewide average adjusted generaleducationrevenue per 20.35 actual pupil unit and therangedisparity in adjusted general 20.36educationrevenue among pupils and districts by computingthe21.1difference between the fifth andthe ratio of the ninety-fifth 21.2percentilespercentile to the fifth percentile of adjusted 21.3 generaleducationrevenue. The commissioner must provide that 21.4 information to all school districts. 21.5 If the disparity in adjusted generaleducationrevenue as 21.6 measured by thedifference between the fifth andratio of the 21.7 ninety-fifthpercentilespercentile to the fifth percentile 21.8 increases in any year, the commissionermust propose ashall 21.9 recommend to the legislature options for change in the general 21.10 education formula that will limit the disparity in adjusted 21.11 generaleducationrevenue to no more than the disparity for the 21.12 previous school year. The commissioner must submit theproposal21.13 recommended options to the education committees of the 21.14 legislature by January 15. 21.15 For purposes of this section, adjusted general revenue 21.16 means the sum of basic revenue under section 124A.22, 21.17 subdivision 2; supplemental revenue under section 124A.22, 21.18 subdivisions 8 and 9; transition revenue under section 124.22, 21.19 subdivision 13c; and referendum revenue under section 124A.03. 21.20 Sec. 27. [124A.32] [IN-SCHOOL SUSPENSION REVENUE.] 21.21 A school site shall receive $4 per pupil per school day for 21.22 each pupil the school site suspends and places in an in-school 21.23 suspension program or alternative to an out-of-school suspension 21.24 program instead of prohibiting the pupil from attending school. 21.25 The school site shall use the revenue for the increased costs of 21.26 having a licensed teacher instruct a pupil placed in an 21.27 in-school suspension program or alternative to an out-of-school 21.28 suspension program. 21.29 Sec. 28. Laws 1992, chapter 499, article 7, section 31, is 21.30 amended to read: 21.31 Sec. 31. [REPEALER.] 21.32Minnesota Statutes 1990, sections 124A.02, subdivision 24;21.33124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3;21.34124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota21.35Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and21.3623; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i;22.1124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9;22.2124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision22.31; and 124A.29, subdivision 1, are repealed effective June 30,22.41999;Laws 1991, chapter 265, article 7, section 35, is repealed. 22.5 Sec. 29. Laws 1997, First Special Session chapter 4, 22.6 article 1, section 58, is amended to read: 22.7 Sec. 58. [BUS PURCHASE LEVY.] 22.8 (a) For 1997 taxes payable in 1998, a school district may 22.9 levy the amount necessary to eliminate the deficit in the 22.10 reserved fund balance account for bus purchases in its 22.11 transportation fund as of June 30, 1996. 22.12 (b) For 1998 taxes payable in 1999, a school district that 22.13 had a positive balance in the reserved fund balance account for 22.14 bus purchases in its transportation fund as of June 30, 1996, 22.15 but that had already entered into a contract for new buses or 22.16 ordered new buses that had not been received prior to June 30, 22.17 1996, may levy an amount equal to the difference between the 22.18 purchase price of the buses and its balance in the reserve 22.19 account for bus purchases. 22.20 Sec. 30. Laws 1997, First Special Session chapter 4, 22.21 article 1, section 61, subdivision 3, is amended to read: 22.22 Subd. 3. [EQUALIZING FACTORS.] The commissioner shall 22.23 adjust each equalizing factor established using adjusted net tax 22.24 capacity per actual pupil unit under Minnesota Statutes, 22.25 chapters 124 and 124A, by dividing the equalizing factor by the 22.26 ratio of the statewide tax capacity as calculated using the 22.27 class rates in effect for assessment year 1996 to the statewide 22.28 tax capacity using the class rates for that assessment year. 22.29 Sec. 31. Laws 1997, First Special Session chapter 4, 22.30 article 2, section 51, subdivision 29, is amended to read: 22.31 Subd. 29. [FIRST GRADE PREPAREDNESS.] (a) For grants for 22.32 the first grade preparedness program under Minnesota Statutes, 22.33 section 124.2613, and for school sites that have provided a 22.34 full-day kindergarten option for kindergarten students enrolled 22.35 in fiscal years 1996 and 1997: 22.36 $5,000,000 ..... 1998 23.1$5,000,000$5,500,000 ..... 1999 23.2 (b) To be a qualified site, licensed teachers must have 23.3 taught the optional full-day kindergarten classes. A district 23.4 that charged a fee for students participating in an optional 23.5 full-day program is eligible to receive the grant to provide 23.6 full-day kindergarten for all students as required by Minnesota 23.7 Statutes, section 124.2613, subdivision 4. Districts with 23.8 eligible sites must apply to the commissioner of children, 23.9 families, and learning for a grant. 23.10 (c) This appropriation must first be used to fund programs 23.11 operating during the 1996-1997 school year under paragraph (b) 23.12 and Minnesota Statutes, section 124.2613. Any remaining funds 23.13 may be used to expand the number of sites providing first grade 23.14 preparedness programs. 23.15 Sec. 32. Laws 1997, First Special Session chapter 4, 23.16 article 5, section 28, subdivision 12, is amended to read: 23.17 Subd. 12. [GRADUATION RULE IMPLEMENTATION AT THE SITE 23.18 AID.] For graduation rule implementation: 23.19 $10,000,000 ..... 1998 23.20 (a) This appropriation shall be paid to districts according 23.21 to paragraph (b). The purpose of the aid is to accelerate the 23.22 implementation of the graduation rule throughout all education 23.23 sites in the district through intensive staff development and 23.24 decentralized decision making. The board shall work with the 23.25 teaching staff in the district to determine the most effective 23.26 staff development processes to assure an acceleration of the 23.27 implementation. This appropriation is one-time only. 23.28 (b) A district shall receive aid equal to $10 times the 23.29 number of fund balance pupil units in the district for fiscal 23.30 year 1998 excluding pupil units attributable to shared time 23.31 pupils. At least 30 percent must be used for the purposes of 23.32 paragraph (a). 23.33 Sec. 33. Laws 1997, First Special Session chapter 4, 23.34 article 9, section 11, is amended to read: 23.35 Sec. 11. [ADDITIONAL TECHNOLOGY REVENUE.] 23.36 (a) For fiscal year 1998 only, the allowance in Minnesota 24.1 Statutes, section 124A.22, subdivision 10, paragraph (a), is 24.2 increased by: 24.3 (1) $24 per pupil unit; or 24.4 (2) the lesser of $25,000 or $80 per pupil unit. 24.5 Revenue received under this section must be used according 24.6 to Minnesota Statutes, section 124A.22, subdivision 11, clauses 24.7 (15), (18), (19), (23), and (24). 24.8 (b) For the purposes of paragraph (a), "pupil unit" means 24.9 fund balance pupil unit as defined in Minnesota Statutes, 24.10 section 124A.26, subdivision 1, excluding pupil units 24.11 attributable to shared time pupils. 24.12 Sec. 34. [COMPENSATION PUPIL UNITS; FISCAL YEAR 1998.] 24.13 Notwithstanding Minnesota Statutes, section 124.17, 24.14 subdivision 1d, paragraphs (a) to (c), for fiscal year 1998 24.15 only, compensation revenue pupil units for buildings with no 24.16 free or reduced price lunch counts for fiscal year 1997 because 24.17 the site did not participate in the national school lunch 24.18 program, or for a contracted alternative program for which no 24.19 count was reported to the department of children, families, and 24.20 learning, shall be computed using data for the current fiscal 24.21 year. 24.22 Sec. 35. [SUPPLEMENTAL REVENUE.] 24.23 Supplemental revenue for fiscal years 1998 and later under 24.24 Minnesota Statutes, section 124A.22, subdivision 8, is increased 24.25 by the following amounts: 24.26 (1) for independent school district No. 593, Crookston, 24.27 $117,000; 24.28 (2) for independent school district No. 361, International 24.29 Falls, $107,000; 24.30 (3) for independent school district No. 706, Virginia, 24.31 $43,000; and 24.32 (4) for independent school district No. 2154, 24.33 Eveleth-Gilbert, $8,000. 24.34 Supplemental revenue increased under this section is not 24.35 subject to reduction under Minnesota Statutes, section 124A.22, 24.36 subdivision 9. 25.1 Sec. 36. [MODEL TRANSPORTATION AND SCHOOL START TIME 25.2 POLICY.] 25.3 Subdivision 1. [TRANSPORTATION EFFICIENCY.] Independent 25.4 school district No. 270, Hopkins, shall establish a task force 25.5 consisting of community members, school board members, parents, 25.6 teachers, and administrators to examine its existing pupil 25.7 transportation system. The task force shall examine all manner 25.8 of school bus transportation efficiencies, including: 25.9 (1) state transportation mandates; 25.10 (2) school bus route design; 25.11 (3) school bus stop locations; 25.12 (4) school bus student pick-up times; and 25.13 (5) changes to peak-hour highway policies for school buses, 25.14 with particular attention paid to the effects of metered ramps 25.15 on school bus efficiency. 25.16 The task force shall also evaluate alternative 25.17 transportation methods such as metropolitan transit commission 25.18 bus service, student carpools, and other manners of student 25.19 transportation to and from school. 25.20 Subd. 2. [SCHOOL START TIME.] The task force shall 25.21 evaluate the effect of transportation decisions on school start 25.22 times and make recommendations about school start times for 25.23 elementary and secondary students. 25.24 Subd. 3. [REPORT.] Independent school district No. 270, 25.25 Hopkins, shall summarize the activities of the task force and 25.26 prepare a report to be presented by March 1, 1999, to the 1999 25.27 legislature. 25.28 Sec. 37. [INDEPENDENT SCHOOL DISTRICT NO. 2862, JACKSON 25.29 COUNTY CENTRAL; REFERENDUM AUTHORITY.] 25.30 Subdivision 1. [REFERENDUM REVENUE ADJUSTMENT.] 25.31 Notwithstanding Minnesota Statutes, section 124A.03, referendum 25.32 equalization aid for fiscal year 1998 for independent school 25.33 district No. 2862, Jackson County Central, is $72,000, and the 25.34 district's net tax capacity referendum levy is $61,000. 25.35 Subd. 2. [AID ADJUSTMENT.] The department of children, 25.36 families, and learning shall adjust the aid payments for fiscal 26.1 year 1998 to independent school district No. 2862, Jackson 26.2 County Central, according to subdivision 1. 26.3 Subd. 3. [LEVY ADJUSTMENT.] For taxes payable in 1999, the 26.4 department of children, families, and learning shall make a levy 26.5 adjustment for the independent school district No. 2862, Jackson 26.6 County Central, referendum levy authority for fiscal year 1998, 26.7 according to subdivision 1. 26.8 Sec. 38. [LEVY RECOGNITION SHIFT.] 26.9 (a) The early levy recognition shift percentage established 26.10 under Minnesota Statutes, section 121.904, subdivision 4a, as 26.11 amended, is reduced to 2.9 percent for fiscal years 1999 and 26.12 later. 26.13 (b) The commissioner of finance must certify to the 26.14 commissioner of children, families, and learning the levy 26.15 recognition shift percent established under this section by 26.16 January 5, 1999. The commissioner of children, families, and 26.17 learning must notify school districts of a change in the levy 26.18 recognition shift by January 15, 1999. 26.19 Sec. 39. [TECHNOLOGY AID.] 26.20 Subdivision 1. [AID AMOUNT.] A district is eligible for 26.21 technology aid equal to $61 times the number of fund balance 26.22 pupil units in the district for fiscal year 1999 excluding pupil 26.23 units attributable to shared time pupil units. 26.24 Subd. 2. [REVENUE USES.] Technology aid may be used for: 26.25 (1) purchase or lease of computer hardware or software to 26.26 be used in classrooms and for instructional purposes; 26.27 (2) wiring, network connections and other 26.28 technology-related infrastructure improvements; 26.29 (3) purchase or lease of interactive television network 26.30 equipment and network support; 26.31 (4) purchase or lease of computer software and hardware 26.32 designed to support special needs programming and limited 26.33 English proficiency programming; 26.34 (5) network and technical support; and 26.35 (6) purchase of textbooks and other instructional materials. 26.36 A school district must first use state aid received under 27.1 this subdivision for the purposes of clause (1). Any remaining 27.2 aid may be used for the purposes of clauses (2) to (6). 27.3 Subd. 3. [TEACHER TRAINING TO ENSURE COMPUTER COMPETENCY; 27.4 ALLOCATION PRIORITIES.] Beginning before the 1998-1999 school 27.5 year, school districts must make a best effort to provide 27.6 training to all teachers to ensure that teachers have the skills 27.7 needed to successfully use school computers. 27.8 Subd. 4. [DISTRICT REPORT.] Each school district shall 27.9 submit a report in the form and manner prescribed by the 27.10 commissioner of children, families and learning to the 27.11 commissioner by August 15, 1999 describing its technology 27.12 investments funded through this section including whether the 27.13 expenditures were on textbooks, networks, interactive television 27.14 activities or classroom computers. The report must also 27.15 summarize information on the number and type of computers in 27.16 each classroom or other applicable setting. The report shall 27.17 also contain the district plan for maintaining and supporting 27.18 the district investment over the three years following the date 27.19 of acquisition of the new technology. 27.20 Sec. 40. [APPROPRIATION.] 27.21 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 27.22 LEARNING.] The sums indicated in this section are appropriated 27.23 from the general fund to the department of children, families, 27.24 and learning for the fiscal years designated. 27.25 Subd. 2. [GENERAL EDUCATION AID.] For general education 27.26 aid: 27.27 $185,000 ..... 1998 27.28 $59,787,000 ..... 1999 27.29 This aid is in addition to any other aid appropriated for 27.30 this purpose. 27.31 Subd. 3. [HOPKINS.] For a grant to independent school 27.32 district No. 270, Hopkins, for the purposes of section 36: 27.33 $50,000 ..... 1999 27.34 Subd. 4. [IN-SCHOOL SUSPENSION COSTS.] For in-school 27.35 suspension costs that school sites incur under Minnesota 27.36 Statutes, section 124A.32: 28.1 $300,000 ..... 1999 28.2 Subd. 5. [TECHNOLOGY INTEGRATION PROJECT.] For a grant to 28.3 independent school district No. 62, Ortonville, to implement a 28.4 technology integration program: 28.5 $200,000 ..... 1999 28.6 The purpose of the technology integration pilot project is 28.7 to demonstrate successful and effective uses of technology for 28.8 students, teachers, guidance counselors, administrators, and 28.9 parents to implement Minnesota's graduation standards and track 28.10 student performance in meeting the standards. 28.11 Subd. 6. [SHIFT REDUCTION.] In addition to any amounts 28.12 appropriated by other law, for reduction of the early 28.13 recognition of school district property taxes: 28.14 $52,000,000 ..... 1999 28.15 Subd. 7. [TECHNOLOGY AID.] For technology aid: 28.16 $59,000,000 ..... 1999 28.17 Sec. 41. [REPEALER.] 28.18 (a) Minnesota Statutes 1997 Supplement, section 124.912, 28.19 subdivisions 2 and 3, are repealed effective for taxes payable 28.20 in 1998. 28.21 (b) Minnesota Statutes 1996, sections 124A.697; 124A.698; 28.22 124A.70; 124A.71; 124A.711, subdivision 1; 124A.72; and 124A.73; 28.23 and Minnesota Statutes 1997 Supplement, section 124A.711, 28.24 subdivision 2, are repealed. 28.25 Sec. 42. [EFFECTIVE DATE.] 28.26 (a) Sections 1, 2, 4, 5, 26, 29, 31, and 36 are effective 28.27 July 1, 1998. 28.28 (b) Section 3 is effective July 1, 1999. 28.29 (c) Sections 8, 17, 23, 28, and 37 are effective the day 28.30 following final enactment. 28.31 (d) Sections 9, 12, 13, 16, 19, 20, 21, 22, 24, 25, and 27 28.32 are effective for revenue for fiscal year 1999. 28.33 (e) Sections 6, 7, 11, 14, 15, 16, 18, 30, 32, 33, 34, and 28.34 35 are effective for revenue for fiscal year 1998. 28.35 (f) Section 10 is effective retroactively to July 1, 1997, 28.36 for revenue for fiscal year 1999. 29.1 (g) Sections 38 and 40, subdivision 6, are effective for 29.2 revenue for fiscal year 1999, unless, based on the November 1998 29.3 general fund forecast, a negative unrestricted general fund 29.4 balance is projected for the biennium ending June 30, 1999, 29.5 which would reduce the general fund budget reserve below five 29.6 percent of fiscal year 1999 general fund expenditures. 29.7 ARTICLE 2 29.8 SPECIAL EDUCATION 29.9 Section 1. Minnesota Statutes 1996, section 120.03, 29.10 subdivision 1, is amended to read: 29.11 Subdivision 1. Every child who has a hearing impairment, 29.12 visual disability, speech or language impairment, physical 29.13 handicap, other health impairment, mental handicap, 29.14 emotional/behavioral disorder, specific learning 29.15 disability, autism, traumatic brain injury, or deaf/blind 29.16 disability and needs special instruction and services, as 29.17 determined by the standards of the state board, is a child with 29.18 a disability. In addition, every childunderup to agefive29.19 three, and at local district discretion from age three to seven, 29.20 who needs special instruction and services, as determined by the 29.21 standards of the state board, because the child has a 29.22 substantial delay or has an identifiable physical or mental 29.23 condition known to hinder normal development is a child with a 29.24 disability. 29.25 Sec. 2. [120.031] [STATEWIDE DATA MANAGEMENT SYSTEM TO 29.26 MAXIMIZE MEDICAL ASSISTANCE REIMBURSEMENT.] 29.27 Subdivision 1. [DEFINITION.] For purposes of this section, 29.28 cooperative unit has the meaning given in section 123.35, 29.29 subdivision 19b, paragraph (d). 29.30 Subd. 2. [PROVIDING ASSISTANCE AND TRAINING.] The 29.31 commissioner, in cooperation with the commissioner of human 29.32 services, shall develop a statewide data management system using 29.33 the educational data reporting system or other existing data 29.34 management system for school districts and cooperative units to 29.35 use to maximize medical assistance reimbursement for health and 29.36 health-related services provided under individual education 30.1 plans and individual family service plans. The statewide data 30.2 management system must enable school district and cooperative 30.3 unit staff to: 30.4 (1) establish medical assistance billing systems or improve 30.5 existing systems; 30.6 (2) understand the appropriate medical assistance billing 30.7 codes for services provided under individual education plans and 30.8 individual family service plans; 30.9 (3) comply with the Individuals with Disabilities Education 30.10 Act, Public Law Number 105-17; 30.11 (4) contract with billing agents; and 30.12 (5) carry out other activities necessary to maximize 30.13 medical assistance reimbursement. 30.14 Sec. 3. Minnesota Statutes 1996, section 120.06, 30.15 subdivision 2a, is amended to read: 30.16 Subd. 2a. [EDUCATION AND RESIDENCE OF HOMELESS.] (a) 30.17 Notwithstanding subdivision 1, a school district must not deny 30.18 free admission to a homeless person of school age solely because 30.19 the school district cannot determine that the person is a 30.20 resident of the school district. 30.21 (b) The school district of residence for a homeless person 30.22 of school age shall be the school district in which the homeless 30.23 shelter or other program, center, or facility assisting the 30.24 homeless person is located. The educational services a school 30.25 district provides to a homeless person must allow the person to 30.26 work toward meeting the graduation standards under section 30.27 121.11, subdivision 7c. 30.28 Sec. 4. Minnesota Statutes 1996, section 120.064, 30.29 subdivision 5, is amended to read: 30.30 Subd. 5. [CONTRACT.] The sponsor's authorization for a 30.31 charter school shall be in the form of a written contract signed 30.32 by the sponsor and the board of directors of the charter 30.33 school. The contract for a charter school shall be in writing 30.34 and contain at least the following: 30.35 (1) a description of a program that carries out one or more 30.36 of the purposes in subdivision 1; 31.1 (2) specific outcomes pupils are to achieve under 31.2 subdivision 10; 31.3 (3) admission policies and procedures; 31.4 (4) management and administration of the school; 31.5 (5) requirements and procedures for program and financial 31.6 audits; 31.7 (6) how the school will comply with subdivisions 8, 13, 15, 31.8 and 21; 31.9 (7) assumption of liability by the charter school; 31.10 (8) types and amounts of insurance coverage to be obtained 31.11 by the charter school;and31.12 (9) the term of the contract, which may be up to three 31.13 years; and 31.14 (10) if the board of directors or the operators of the 31.15 charter school provide special instruction and services for 31.16 children with a disability under section 120.17, a description 31.17 of the financial parameters within which the charter school will 31.18 operate to provide the special instruction and services to 31.19 children with a disability. 31.20 Sec. 5. Minnesota Statutes 1996, section 120.101, 31.21 subdivision 3, is amended to read: 31.22 Subd. 3. [PARENT DEFINED; RESIDENCY DETERMINED.] (a) In 31.23 sections 120.101 to 120.103, "parent" means a parent, guardian, 31.24 or other person having legal custody of a child. 31.25 (b) In section 120.17, "parent" means a parent, guardian, 31.26 or other person having legal custody of a child under age 18. 31.27 For an unmarried pupil age 18 or over, "parent" means the pupil 31.28 unless a guardian or conservator has been appointed, in which 31.29 case it means the guardian or conservator. 31.30 (c) For purposes of section 120.17, the school district of 31.31 residence for an unmarried pupil age 18 or over who is a parent 31.32 under paragraph (b) and who is placed in a center for care and 31.33 treatment, shall be the school district in which the pupil's 31.34 biological or adoptive parent or designated guardian resides. 31.35 (d) For a married pupil age 18 or over, the school district 31.36 of residence is the school district in which the married pupil 32.1 resides. 32.2 Sec. 6. Minnesota Statutes 1996, section 120.17, 32.3 subdivision 1, is amended to read: 32.4 Subdivision 1. [SPECIAL INSTRUCTION FOR CHILDREN WITH A 32.5 DISABILITY.] (a) As defined in paragraph (b), to the extent 32.6 required in federal law as of July 1, 1999, every district shall 32.7 provide special instruction and services, either within the 32.8 district or in another district, for children with a disability 32.9 who are residents of the district and who are disabled as set 32.10 forth in section 120.03. 32.11 (b) Notwithstanding any age limits in laws to the contrary, 32.12 special instruction and services must be provided from birth 32.13 until September 1 after the child with a disability becomes 22 32.14 years old but shall not extend beyond secondary school or its 32.15 equivalent, except as provided in section 126.22, subdivision 32.16 2. Local health, education, and social service agencies shall 32.17 refer children under age five who are known to need or suspected 32.18 of needing special instruction and services to the school 32.19 district. Districts with less than the minimum number of 32.20 eligible children with a disability as determined by the state 32.21 board shall cooperate with other districts to maintain a full 32.22 range of programs for education and services for children with a 32.23 disability. This subdivision does not alter the compulsory 32.24 attendance requirements of section 120.101. 32.25 Sec. 7. Minnesota Statutes 1996, section 120.17, 32.26 subdivision 2, is amended to read: 32.27 Subd. 2. [METHOD OF SPECIAL INSTRUCTION.] (a) As defined 32.28 in this subdivision, to the extent required by federal law as of 32.29 July 1, 1999, special instruction and services for children with 32.30 a disability must be based on the assessment and individual 32.31 education plan. The instruction and services may be provided by 32.32 one or more of the following methods: 32.33 (1) in connection with attending regular elementary and 32.34 secondary school classes; 32.35 (2) establishment of special classes; 32.36 (3) at the home or bedside of the child; 33.1 (4) in other districts; 33.2 (5) instruction and services by special education 33.3 cooperative centers established under this section, or in 33.4 another member district of the cooperative center to which the 33.5 resident district of the child with a disability belongs; 33.6 (6) in a state residential school or a school department of 33.7 a state institution approved by the commissioner; 33.8 (7) in other states; 33.9 (8) by contracting with public, private or voluntary 33.10 agencies; 33.11 (9) for children under age five and their families, 33.12 programs and services established through collaborative efforts 33.13 with other agencies; 33.14 (10) for children under age five and their families, 33.15 programs in which children with a disability are served with 33.16 children without a disability; and 33.17 (11) any other method approved by the commissioner. 33.18 (b) Preference shall be given to providing special 33.19 instruction and services to children under age three and their 33.20 families in the residence of the child with the parent or 33.21 primary caregiver, or both, present. 33.22 (c) The primary responsibility for the education of a child 33.23 with a disability shall remain with the district of the child's 33.24 residence regardless of which method of providing special 33.25 instruction and services is used. If a district other than a 33.26 child's district of residence provides special instruction and 33.27 services to the child, then the district providing the special 33.28 instruction and services shall notify the child's district of 33.29 residence before the child's individual education plan is 33.30 developed and shall provide the district of residence an 33.31 opportunity to participate in the plan's development. The 33.32 district of residence must inform the parents of the child about 33.33 the methods of instruction that are available. 33.34 (d) Paragraphs (e) to (i) may be cited as the "Blind 33.35 Persons' Literacy Rights and Education Act." 33.36 (e) The following definitions apply to paragraphs (f) to 34.1 (i). 34.2 "Blind student" means an individual who is eligible for 34.3 special educational services and who: 34.4 (1) has a visual acuity of 20/200 or less in the better eye 34.5 with correcting lenses or has a limited field of vision such 34.6 that the widest diameter subtends an angular distance of no 34.7 greater than 20 degrees; or 34.8 (2) has a medically indicated expectation of visual 34.9 deterioration. 34.10 "Braille" means the system of reading and writing through 34.11 touch commonly known as standard English Braille. 34.12"Individualized education plan" means a written statement34.13developed for a student eligible for special education and34.14services pursuant to this section and section 602(a)(20) of part34.15A of the Individuals with Disabilities Education Act, United34.16States Code, title 20, section 1401(a).34.17 (f) In developing an individualized education plan for each 34.18 blind student the presumption must be that proficiency in 34.19 Braille reading and writing is essential for the student to 34.20 achieve satisfactory educational progress. The assessment 34.21 required for each student must include a Braille skills 34.22 inventory, including a statement of strengths and deficits. 34.23 Braille instruction and use are not required by this paragraph 34.24 if, in the course of developing the student's individualized 34.25 education program, team members concur that the student's visual 34.26 impairment does not affect reading and writing performance 34.27 commensurate with ability. This paragraph does not require the 34.28 exclusive use of Braille if other special education services are 34.29 appropriate to the student's educational needs. The provision 34.30 of other appropriate services does not preclude Braille use or 34.31 instruction. Instruction in Braille reading and writing shall 34.32 be available for each blind student for whom the 34.33 multidisciplinary team has determined that reading and writing 34.34 is appropriate. 34.35 (g) Instruction in Braille reading and writing must be 34.36 sufficient to enable each blind student to communicate 35.1 effectively and efficiently with the same level of proficiency 35.2 expected of the student's peers of comparable ability and grade 35.3 level. 35.4 (h) The student's individualized education plan must 35.5 specify: 35.6 (1) the results obtained from the assessment required under 35.7 paragraph (f); 35.8 (2) how Braille will be implemented through integration 35.9 with other classroom activities; 35.10 (3) the date on which Braille instruction will begin; 35.11 (4) the length of the period of instruction and the 35.12 frequency and duration of each instructional session; 35.13 (5) the level of competency in Braille reading and writing 35.14 to be achieved by the end of the period and the objective 35.15 assessment measures to be used; and 35.16 (6) if a decision has been made under paragraph (f) that 35.17 Braille instruction or use is not required for the student: 35.18 (i) a statement that the decision was reached after a 35.19 review of pertinent literature describing the educational 35.20 benefits of Braille instruction and use; and 35.21 (ii) a specification of the evidence used to determine that 35.22 the student's ability to read and write effectively without 35.23 Braille is not impaired. 35.24 (i) Instruction in Braille reading and writing is a service 35.25 for the purpose of special education and services under this 35.26 section. 35.27 (j) Paragraphs (e) to (i) shall not be construed to 35.28 supersede any rights of a parent or guardian of a child with a 35.29 disability under federal or state law. 35.30 Sec. 8. Minnesota Statutes 1996, section 120.17, 35.31 subdivision 3, is amended to read: 35.32 Subd. 3. [RULES OF THE STATE BOARD.] (a) As defined in 35.33 this paragraph, but not to exceed the extent required by federal 35.34 law as of July 1, 1999, the state board shall promulgate rules 35.35 relative to qualifications of essential personnel, courses of 35.36 study, methods of instruction, pupil eligibility, size of 36.1 classes, rooms, equipment, supervision, parent consultation, and 36.2anyotherrules it deemsnecessary rules for instruction of 36.3 children with a disability. These rules shall provide standards 36.4 and procedures appropriate for the implementation of and within 36.5 the limitations of subdivisions 3a and 3b. These rules shall 36.6 also provide standards for the discipline, control, management 36.7 and protection of children with a disability. The state board 36.8 shall not adopt rules for pupils servedin level 1, 2, or 3, as36.9defined in Minnesota Rules, part 3525.2340,primarily in the 36.10 regular classroom establishing either case loads or the maximum 36.11 number of pupils that may be assigned to special education 36.12 teachers. The state board, in consultation with the departments 36.13 of health and human services, shall adopt permanent rules for 36.14 instruction and services for children under age five and their 36.15 families. These rules are binding on state and local education, 36.16 health, and human services agencies. The state board shall 36.17 adopt rules to determine eligibility for special education 36.18 services. The rules shall include procedures and standards by 36.19 which to grant variances for experimental eligibility criteria. 36.20 The state board shall, according to section 14.05, subdivision 36.21 4, notify a district applying for a variance from the rules 36.22 within 45 calendar days of receiving the request whether the 36.23 request for the variance has been granted or denied. If a 36.24 request is denied, the board shall specify the program standards 36.25 used to evaluate the request and the reasons for denying the 36.26 request. 36.27 (b) As provided in this paragraph, but not to exceed the 36.28 extent required by federal law as of July 1, 1999, the state's 36.29 regulatory scheme should support schools by assuring that all 36.30 state special education rules adopted by the state board of 36.31 education result in one or more of the following outcomes: 36.32 (1) increased time available to teachers and, where 36.33 appropriate, to support staff including school nurses for 36.34 educating students through direct and indirect instruction; 36.35 (2) consistent and uniform access to effective education 36.36 programs for students with disabilities throughout the state; 37.1 (3) reduced inequalities,and conflict, appropriate due 37.2 process hearing procedures and reduced court actions related to 37.3 the delivery of special education instruction and services for 37.4 students with disabilities; 37.5 (4) clear expectations for service providers and for 37.6 students with disabilities; 37.7 (5) increased accountability for all individuals and 37.8 agencies that provide instruction and other services to students 37.9 with disabilities; 37.10 (6) greater focus for the state and local resources 37.11 dedicated to educating students with disabilities; and 37.12 (7) clearer standards for evaluating the effectiveness of 37.13 education and support services for students with disabilities. 37.14 Sec. 9. Minnesota Statutes 1996, section 120.17, 37.15 subdivision 3a, is amended to read: 37.16 Subd. 3a. [SCHOOL DISTRICT OBLIGATIONS.] (a) As defined in 37.17 this subdivision, to the extent required by federal law as of 37.18 July 1, 1999, every district shall ensure that: 37.19 (1) all students with disabilities are provided the special 37.20 instruction and services which are appropriate to their needs. 37.21 Where the individual education plan team has determined 37.22 appropriate goals and objectives based on the student's needs, 37.23 including the extent to which the student can be included in the 37.24 least restrictive environment, and where there are essentially 37.25 equivalent and effective instruction, related services, or 37.26 assistive technology devices available to meet the student's 37.27 needs, cost to the school district may be among the factors 37.28 considered by the team in choosing how to provide the 37.29 appropriate services, instruction, or devices that are to be 37.30 made part of the student's individual education plan. The 37.31 student's needs and the special education instruction and 37.32 services to be provided shall be agreed upon through the 37.33 development of an individual education plan. The plan shall 37.34 address the student's need to develop skills to live and work as 37.35 independently as possible within the community. By grade 9 or 37.36 age 14, the plan shall address the student's needs for 38.1 transition from secondary services to post-secondary education 38.2 and training, employment, community participation, recreation, 38.3 and leisure and home living. The plan must include a statement 38.4 of the needed transition services, including a statement of the 38.5 interagency responsibilities or linkages or both before 38.6 secondary services are concluded; 38.7 (2) children with a disability under age five and their 38.8 families are provided special instruction and services 38.9 appropriate to the child's level of functioning and needs; 38.10 (3) children with a disability and their parents or 38.11 guardians are guaranteed procedural safeguards and the right to 38.12 participate in decisions involving identification, assessment 38.13 including assistive technology assessment, and educational 38.14 placement of children with a disability; 38.15 (4) eligibility and needs of children with a disability are 38.16 determined by an initial assessment or reassessment, which may 38.17 be completed using existing data under United States Code, title 38.18 20, section 33, et seq.; 38.19 (5) to the maximum extent appropriate, children with a 38.20 disability, including those in public or private institutions or 38.21 other care facilities, are educated with children who are not 38.22 disabled, and that special classes, separate schooling, or other 38.23 removal of children with a disability from the regular 38.24 educational environment occurs only when and to the extent that 38.25 the nature or severity of the disability is such that education 38.26 in regular classes with the use of supplementary services cannot 38.27 be achieved satisfactorily; 38.28(5)(6) in accordance with recognized professional 38.29 standards, testing and evaluation materials, and procedures 38.30 utilized for the purposes of classification and placement of 38.31 children with a disability are selected and administered so as 38.32 not to be racially or culturally discriminatory; and 38.33(6)(7) the rights of the child are protected when the 38.34 parents or guardians are not known or not available, or the 38.35 child is a ward of the state. 38.36 (b) For paraprofessionals employed to work in programs for 39.1 students with disabilities, the school board in each district 39.2 shall ensure that: 39.3 (1) before or immediately upon employment, each 39.4 paraprofessional develops sufficient knowledge and skills in 39.5 emergency procedures, building orientation, roles and 39.6 responsibilities, confidentiality, vulnerability, and 39.7 reportability, among other things, to begin meeting the needs of 39.8 the students with whom the paraprofessional works; 39.9 (2) annual training opportunities are available to enable 39.10 the paraprofessional to continue to further develop the 39.11 knowledge and skills that are specific to the students with whom 39.12 the paraprofessional works, including understanding 39.13 disabilities, following lesson plans, and implementing follow-up 39.14 instructional procedures and activities; and 39.15 (3) a districtwide process obligates each paraprofessional 39.16 to work under the ongoing direction of a licensed teacher and, 39.17 where appropriate and possible, the supervision of a school 39.18 nurse. 39.19 Sec. 10. Minnesota Statutes 1996, section 120.17, 39.20 subdivision 3b, is amended to read: 39.21 Subd. 3b. [PROCEDURES FOR DECISIONS.] As defined in this 39.22 paragraph, but not to exceed the extent required by federal law 39.23 as of July 1, 1999, every district shall utilizeat leastthe 39.24 following procedures for decisions involving identification, 39.25 assessment, and educational placement of children with a 39.26 disability: 39.27 (a) Parents and guardians shall receive prior written 39.28 notice of: 39.29 (1) any proposed formal educational assessment or proposed 39.30 denial of a formal educational assessment of their child; 39.31 (2) a proposed placement of their child in, transfer from 39.32 or to, or denial of placement in a special education program; or 39.33 (3) the proposed provision, addition, denial or removal of 39.34 special education services for their child;. 39.35 (b) The district shall not proceed with the initial formal 39.36 assessment of a child, the initial placement of a child in a 40.1 special education program, or the initial provision of special 40.2 education services for a child without the prior written consent 40.3 of the child's parent or guardian. The refusal of a parent or 40.4 guardian to consent may be overridden by the decision in a 40.5 hearing held pursuant toclauseparagraph (e) at the district's 40.6 initiative;. 40.7 (c) Parents and guardians shall have an opportunity to meet 40.8 with appropriate district staff in at least one conciliation 40.9 conference, mediation, or other method of alternative dispute 40.10 resolution that the parties agree to, if they object to any 40.11 proposal of which they are notified pursuant toclause40.12 paragraph (a). The intent of the state is to encourage parties 40.13 to resolve disputes through mediation or other form of 40.14 alternative dispute resolution. A school district and a parent 40.15 or guardian must participate in mediation using the mediation 40.16 services of MNSEMS, which is free to both parties, unless a 40.17 parent or guardian objects to the mediation. Mediation under 40.18 this paragraph shall not affect parties' subsequent rights to a 40.19 due process hearing. All mediation is subject to the 40.20 confidentiality requirements under rule 114.08 of the general 40.21 rules of practice for the district courts. The conciliation 40.22 process or other form of alternative dispute resolution shall 40.23 not be used to deny or delay a parent or guardian's right to a 40.24 due process hearing. If the parent or guardian refuses efforts 40.25 by the district to conciliate the dispute with the school 40.26 district, the requirement of an opportunity for conciliation or 40.27 other alternative dispute resolution shall be deemed to be 40.28 satisfied. Notwithstanding other law, in any proceeding 40.29 following a conciliation conference, the school district must 40.30 not offer a conciliation conference memorandum into evidence, 40.31 except for any portions that describe the district's final 40.32 proposed offer of service. Otherwise, with respect to forms of 40.33 dispute resolution, mediation, or conciliation, Minnesota Rule 40.34 of Evidence 408 applies. The department of children, families, 40.35 and learning may reimburse the districts or directly pay the 40.36 costs of lay advocates, not to exceed $150 per dispute, used in 41.1 conjunction with alternative dispute resolution. 41.2 (d) The commissioner shall establish a mediation process to 41.3 assist parents, school districts, or other parties to resolve 41.4 disputes arising out of the identification, assessment, or 41.5 educational placement of children with a disability. The 41.6 mediation process must be offered as an informal alternative to 41.7 the due process hearing provided underclauseparagraph (e), but 41.8 must not be used to deny or postpone the opportunity of a parent 41.9 or guardian to obtain a due process hearing. 41.10 (e) Parents, guardians, and the district shall have an 41.11 opportunity to obtain an impartial due process hearing initiated 41.12 and conducted by and in the school district responsible for 41.13 assuring that an appropriate program is provided in accordance 41.14 with state board rules, if the parent or guardian continues to 41.15 object to: 41.16 (1) a proposed formal educational assessment or proposed 41.17 denial of a formal educational assessment of their child; 41.18 (2) the proposed placement of their child in, or transfer 41.19 of their child to a special education program; 41.20 (3) the proposed denial of placement of their child in a 41.21 special education program or the transfer of their child from a 41.22 special education program; 41.23 (4) the proposed provision or addition of special education 41.24 services for their child; or 41.25 (5) the proposed denial or removal of special education 41.26 services for their child. 41.27 Unless otherwise agreed to by its parties, an impartial due 41.28 process hearing is limited to eight hours, with a maximum of 41.29 four hours available to each party. The party requesting the 41.30 hearing shall plead with specificity as to what issues are in 41.31 dispute and all issues not pleaded with specificity are deemed 41.32 waived. Parties to a hearing are encouraged to present only 41.33 essential witnesses to prove a claim. A hearing review officer, 41.34 at the officer's discretion, may exclude cumulative evidence. 41.35 Within five business days after the request for a hearing, 41.36 or as directed by the hearing officer, the objecting party shall 42.1 provide the other party with a brief written statement of 42.2 particulars of the objection, the reasons for the objection, and 42.3 the specific remedies sought. The other party shall provide the 42.4 objecting party with a written response to the statement of 42.5 objections within five business days of receipt of the statement. 42.6 The hearing shall take place before an impartial hearing 42.7 officer mutually agreed to by the school board and the parent or 42.8 guardian. Within four business days of the receipt of the 42.9 request for the hearing, if the parties have not agreed on the 42.10 hearing officer, the school board shall request the commissioner 42.11 to appoint a hearing officer from a list maintained for that 42.12 purpose. A retired judge, retired court referee, or retired 42.13 federal magistrate judge who is otherwise qualified under this 42.14 section and wishes to be a hearing officer must be put on the 42.15 list. The school board shall include with the request the name 42.16 of the person requesting the hearing, the name of the student, 42.17 the attorneys involved, if any, and the date the hearing request 42.18 was received. The hearing officer shall not be a school board 42.19 member or employee of the school district where the child 42.20 resides or of the child's school district of residence, an 42.21 employee of any other public agency involved in the education or 42.22 care of the child, or any person with a personal or professional 42.23 interest which would conflict with the person's objectivity at 42.24 the hearing. A person who otherwise qualifies as a hearing 42.25 officer is not an employee of the district solely because the 42.26 person is paid by the district to serve as a hearing 42.27 officer. Any party to a hearing, except an expedited hearing 42.28 under federal law, may make and serve upon the opposing party 42.29 and the commissioner a notice to remove a hearing officer 42.30 appointed by the commissioner. The notice shall be served and 42.31 filed within two business days after the party receives notice 42.32 of the appointment of the hearing officer by the commissioner, 42.33 but not later than the commencement of the hearing. 42.34 No such notice may be filed by a party against a hearing 42.35 officer who has presided at a motion or any other proceeding of 42.36 which the party had notice. A hearing officer who has presided 43.1 at a motion or other proceeding may not be removed except upon 43.2 an affirmative showing of prejudice on the part of the hearing 43.3 officer. 43.4 After the party has once disqualified a hearing officer as 43.5 a matter of right, that party may disqualify the substitute 43.6 hearing officer only by making an affirmative showing of 43.7 prejudice or bias to the commissioner, or to the chief 43.8 administrative law judge if the hearing officer is an 43.9 administrative law judge. 43.10 Upon the filing of a notice to remove or if a party makes 43.11 an affirmative showing of prejudice against a substitute hearing 43.12 officer, the commissioner shall assign any other hearing officer 43.13 to hear the matter. 43.14 If the hearing officer requests an independent educational 43.15 assessment of a child, the cost of the assessment shall be at 43.16 district expense. The proceedings shall be recorded and 43.17 preserved, at the expense of the school district, pending 43.18 ultimate disposition of the action. 43.19 (f) The decision of the hearing officer pursuant toclause43.20 paragraph (e) shall be rendered not more than 45 calendar days 43.21 from the date of the receipt of the request for the hearing, 43.22 except that hearing officers may exclude from the 45 calendar 43.23 days the time required for mediation under paragraph (c) and are 43.24 encouraged to accelerate the timeline to 30 days for children 43.25 birth through two whose needs change rapidly and require quick 43.26 resolution of complaints. A hearing officer may not grant 43.27 specific extensions of time beyond the 45-day period unless 43.28 requested by either party for good cause shown on the record. 43.29 The decision of the hearing officer shall be binding on all 43.30 parties unless appealed to the commissioner by the parent; 43.31 guardian; school board of the district where the child resides 43.32 pursuant toclause (g)paragraph (h); and also in the case of 43.33 children birth through two, by the county board. 43.34 The local decision shall: 43.35 (1) be in writing; 43.36 (2) state the controlling facts upon which the decision is 44.1 made in sufficient detail to apprise the parties and the hearing 44.2 review officer of the basis and reason for the decision; and 44.3 (3) be based on the standards set forth in subdivision 3a 44.4 and the rules of the state board. 44.5 (g) The hearing officer may require the resident school 44.6 district to provide compensatory educational services to the 44.7 child if the hearing officer finds that the school district has 44.8 not offered or made available to the child a free appropriate 44.9 public education in the child's educational program and that the 44.10 child has suffered a loss of educational benefit. Such services 44.11 shall take the form of direct and indirect special education and 44.12 related services designed to address any loss of educational 44.13 benefit that may have occurred. The hearing officer's finding 44.14 shall be based on a present determination of whether the child 44.15 has suffered a loss of educational benefit. 44.16(g)(h) Any local decision issued pursuant toclauses44.17 paragraphs (e) and (f) may be appealed to the commissioner 44.18 within 30 calendar days of receipt of that written decision, by 44.19 the parent, guardian, or the school board of the district 44.20 responsible for assuring that an appropriate program is provided 44.21 in accordance with state board rules. The appealing party shall 44.22 note the specific parts of the hearing decision being appealed. 44.23 If the decision is appealed, a written transcript of the 44.24 hearing shall be made by the school district and provided by the 44.25 district to the parties involved and the hearing review officer 44.26 within five calendar days of the filing of the appeal. The 44.27 hearing review officer shall conduct an appellate review and 44.28 issue a final independent decision based on an impartial review 44.29 of the local decision and the entire record within 30 calendar 44.30 days after the filing of the appeal. However, the hearing 44.31 review officer shall seek additional evidence if necessary and 44.32 may afford the parties an opportunity for written or oral 44.33 argument; provided any hearing held to seek additional evidence 44.34 shall be an impartial due process hearing but shall be deemed 44.35 not to be a contested case hearing for purposes of chapter 14. 44.36 The hearing review officer may grant specific extensions of time 45.1 beyond the 30-day period at the request of any party for good 45.2 cause shown on the record. 45.3 The final decision shall: 45.4 (1) be in writing; 45.5 (2) include findings and conclusions; and 45.6 (3) be based upon the standards set forth in subdivision 3a 45.7 and in the rules of the state board. 45.8(h)(i) The decision of the hearing review officer shall be 45.9 final unless appealed by the parent or guardian or school board 45.10 to the Minnesota court of appeals or federal district court as 45.11 provided by federal law. State judicial review shall be in 45.12 accordance with chapter 14. 45.13(i)(j) The commissioner of children, families, and 45.14 learning shall select an individual who has the qualifications 45.15 enumerated in this paragraph to serve as the hearing review 45.16 officer: 45.17 (1) the individual must be knowledgeable and impartial; 45.18 (2) the individual must not have a personal interest in or 45.19 specific involvement with the student who is a party to the 45.20 hearing; 45.21 (3) the individual must not have been employed as an 45.22 administrator by the district that is a party to the hearing; 45.23 (4) the individual must not have been involved in the 45.24 selection of the administrators of the district that is a party 45.25 to the hearing; 45.26 (5) the individual must not have a personal, economic, or 45.27 professional interest in the outcome of the hearing other than 45.28 the proper administration of the federal and state laws, rules, 45.29 and policies; 45.30 (6) the individual must not have substantial involvement in 45.31 the development of a state or local policy or procedures that 45.32 are challenged in the appeal; 45.33 (7) the individual is not a current employee or board 45.34 member of a Minnesota public school district, education 45.35 district, intermediate unit or regional education agency, the 45.36 department of children, families, and learning, the state board 46.1 of education; and 46.2 (8) the individual is not a current employee or board 46.3 member of a disability advocacy organization or group. 46.4(j)(k) In all appeals, the parent or guardian of the pupil 46.5 with a disability or the district that is a party to the hearing 46.6 may challenge the impartiality or competence of the proposed 46.7 hearing review officer by applying to the hearing review officer. 46.8(k)(l) Pending the completion of proceedings pursuant to 46.9 this subdivision, unless the district and the parent or guardian 46.10 of the child agree otherwise, the child shall remain in the 46.11 child's current educational placement and shall not be denied 46.12 initial admission to school. 46.13(l)(m) The child's school district of residence, a 46.14 resident district, and providing district shall receive notice 46.15 of and may be a party to any hearings or appeals under this 46.16 subdivision. 46.17(m)(n) A school district is not liable for harmless 46.18 technical violations of this subdivision or rules implementing 46.19 this subdivision if the school district can demonstrate on a 46.20 case-by-case basis that the violations did not harm the 46.21 student's educational progress or the parent or guardian's right 46.22 to notice, participation, or due process. 46.23(n)(o) Within ten calendar days after appointment, the 46.24 hearing officer shall schedule and hold a prehearing 46.25 conference. At that conference, or later, the hearing officer 46.26 may take any appropriate action that a court might take under 46.27 Rule 16 of Minnesota Rules of Civil Procedure including, but not 46.28 limited to, scheduling, jurisdiction, and listing witnesses 46.29 including expert witnesses. 46.30(o)(p) A hearing officer or hearing review officer 46.31 appointed under this subdivision shall be deemed to be an 46.32 employee of the state under section 3.732 for the purposes of 46.33 section 3.736 only. 46.34(p)(q) In order to be eligible for selection, hearing 46.35 officers and hearing review officers shall participate in 46.36 training and follow procedures as designated by the commissioner. 47.1(q)(r) The hearing officer may admit all evidence which 47.2 possesses probative value, including hearsay, if it is the type 47.3 of evidence on which reasonable, prudent persons are accustomed 47.4 to rely in the conduct of their serious affairs. The hearing 47.5 officer shall give effect to the rules of privilege recognized 47.6 by law. Evidence which is incompetent, irrelevant, immaterial, 47.7 or unduly repetitious shall be excluded. 47.8 Sec. 11. Minnesota Statutes 1996, section 120.17, 47.9 subdivision 6, is amended to read: 47.10 Subd. 6. [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 47.11 The responsibility for special instruction and services for a 47.12 child with a disability temporarily placed in another district 47.13 for care and treatment shall be determined in the following 47.14 manner: 47.15 (a) The school district of residence of a child shall be 47.16 the district in which the child's parent resides, if living, or 47.17 the child's guardian, or the district designated by the 47.18 commissioner of children, families, and learning if neither 47.19 parent nor guardian is living within the state. 47.20 (b) When a child is temporarily placed for care and 47.21 treatment in a day program located in another district and the 47.22 child continues to live within the district of residence during 47.23 the care and treatment, the district of residence is responsible 47.24 for providing transportation and an appropriate educational 47.25 program for the child. The district may provide the educational 47.26 program at a school within the district of residence, at the 47.27 child's residence, or in the district in which the day treatment 47.28 center is located by paying tuition to that district. 47.29 (c) When a child is temporarily placed in a residential 47.30 program for care and treatment, the nonresident district in 47.31 which the child is placed is responsible for providing an 47.32 appropriate educational program for the child and necessary 47.33 transportation while the child is attending the educational 47.34 program; and shall bill the district of the child's residence 47.35 for the actual cost of providing the program, as outlined in 47.36 subdivision 4, except that the board, lodging, and treatment 48.1 costs incurred in behalf of a child with a disability placed 48.2 outside of the school district of residence by the commissioner 48.3 of human services or the commissioner of corrections or their 48.4 agents, for reasons other than for making provision for the 48.5 child's special educational needs shall not become the 48.6 responsibility of either the district providing the instruction 48.7 or the district of the child's residence. For the purposes of 48.8 this section, the state correctional facilities operated on a 48.9 fee-for-service basis are considered to be residential programs 48.10 for care and treatment. 48.11 (d) The district of residence shall pay tuition and other 48.12 program costs, not including transportation costs, to the 48.13 district providing the instruction and services. The district 48.14 of residence may claim general education aid for the child as 48.15 provided by law. Transportation costs shall be paid by the 48.16 district responsible for providing the transportation and the 48.17 state shall pay transportation aid to that district. 48.18 Sec. 12. Minnesota Statutes 1996, section 120.17, 48.19 subdivision 7, is amended to read: 48.20 Subd. 7. [PLACEMENT IN STATE INSTITUTION; RESPONSIBILITY.] 48.21 Responsibility for special instruction and services for a child 48.22 with a disability placed in a state institution on a temporary 48.23 basis shall be determined in the following manner: 48.24 (a) The legal residence of such child shall be the school 48.25 district in which the child's parent resides, if living, or the 48.26 child's guardian. 48.27 (b) When the educational needs of such child can be met 48.28 through the institutional program, the costs for such 48.29 instruction shall be paid by the department to which the 48.30 institution is assigned with exception of children placed in 48.31 fee-for-service facilities operated by the commissioner of 48.32 corrections whose cost for such instruction shall be paid as 48.33 outlined in subdivision 6. 48.34 (c) When it is determined that such child can benefit from 48.35 public school enrollment, provision for such instruction shall 48.36 be made in the following manner: 49.1 (1) determination of eligibility for special instruction 49.2 and services shall be made by the commissioner of children, 49.3 families, and learning and the commissioner of the department 49.4 responsible for the institution; 49.5 (2) the school district where the institution is located 49.6 shall be responsible for providing transportation and an 49.7 appropriate educational program for the child and shall make a 49.8 tuition charge to the child's district of residence for the 49.9 actual cost of providing the program; 49.10 (3) the district of the child's residence shall pay the 49.11 tuition and other program costs excluding transportation costs 49.12 and may claim general education aid for the child. 49.13 Transportation costs shall be paid by the district where the 49.14 institution is located and the state shall pay transportation 49.15 aid to that district. 49.16 Sec. 13. Minnesota Statutes 1996, section 120.17, 49.17 subdivision 9, is amended to read: 49.18 Subd. 9. [SPECIAL INSTRUCTION.] No resident of a district 49.19 who is eligible for special instruction and servicespursuant to49.20 under this section shall be deniedprovision of thisinstruction 49.21 and service on a shared time basis consistent with section 49.22 124A.034, subdivision 2, because ofattendance atattending a 49.23 nonpublic school defined in section 123.932, subdivision 3. If 49.24 a resident pupil with a disability attends a nonpublic school 49.25 located within the district of residence, the district shall 49.26 provide necessary transportation for that pupil within the 49.27 district between the nonpublic school and the educational 49.28 facility where special instruction and services are provided on 49.29 a shared time basis. If a resident pupil with a disability 49.30 attends a nonpublic school located in another district and if no 49.31 agreement existspursuant tounder section 124A.034, subdivision 49.32 1 or 1a, forthe provision ofproviding special instruction and 49.33 services on a shared time basis to that pupil by the district of 49.34 attendance and where the special instruction and services are 49.35 provided within the district of residence, the district of 49.36 residence shall provide necessary transportation for that pupil 50.1 between the boundary of the district of residence and the 50.2 educational facility. The district of residence may provide 50.3 necessary transportation for that pupil between its boundary and 50.4 the nonpublic school attended, but the nonpublic school shall 50.5 pay the cost of transportation provided outside the district 50.6 boundary. 50.7 Sec. 14. Minnesota Statutes 1996, section 120.17, 50.8 subdivision 15, is amended to read: 50.9 Subd. 15. [THIRD PARTY PAYMENT.] (a) Nothing in this 50.10 section relieves an insurer or similar third party from an 50.11 otherwise valid obligation to pay, or changes the validity of an 50.12 obligation to pay, for services rendered to a child with a 50.13 disability, and the child's family. A school district may pay 50.14 or reimburse copayments, coinsurance, deductibles, and other 50.15 enrollee cost-sharing amounts, on behalf of the student or 50.16 family, in connection with health and related services provided 50.17 under an individual educational plan. 50.18 (b) Beginning July 1, 1999, districts shall seek 50.19 reimbursement from insurers and similar third parties for the 50.20 cost of services provided by the district whenever the services 50.21 provided by the district are otherwise covered by the child's 50.22 health coverage. Districts shall request, but may not require, 50.23 the child's family to provide information about the child's 50.24 health coverage when a child with a disability begins to receive 50.25 services from the district of a type that may be reimbursable, 50.26 and shall request, but may not require, updated information 50.27 after that as needed. Districts shall request, but may not 50.28 require, the child's parent or legal representative to sign a 50.29 consent form, permitting the school district to apply for and 50.30 receive reimbursement directly from the insurer or other similar 50.31 third party, to the extent permitted by the insurer or other 50.32 third party. 50.33 (c) Of the reimbursements received, districts may: 50.34 (1) retain an amount sufficient to compensate the district 50.35 for its administrative costs of obtaining reimbursements; 50.36 (2) regularly obtain from education- and health-related 51.1 entities training and other appropriate technical assistance 51.2 designed to improve the district's ability to determine which 51.3 services are reimbursable and to seek timely reimbursement in a 51.4 cost-effective manner; or 51.5 (3) reallocate reimbursements for the benefit of students 51.6 with special needs in the district. 51.7 (d) To the extent required by federal law, a school 51.8 district may not require parents of children with disabilities, 51.9 if they would incur a financial cost, to use private or public 51.10 health coverage to pay for the services that must be provided 51.11 under an individual education plan. 51.12 (e) When obtaining informed consent, consistent with 51.13 sections 13.05, subdivision 4, paragraph (d); and 256B.77, 51.14 subdivision 2, paragraph (p), to bill health plans for covered 51.15 services, the school district must notify the legal 51.16 representative (1) that the cost of the person's health 51.17 insurance premium may increase due to providing the covered 51.18 service in the school setting, (2) that the school district may 51.19 pay certain health plan expenses, health plan expenses include, 51.20 but are not limited to, an enrollee's copayments, coinsurance, 51.21 deductibles, monthly premium increases or other enrollee 51.22 cost-sharing amounts for health and related services required by 51.23 an individual service plan, or individual family service plan, 51.24 and (3) that the school's billing for each type of covered 51.25 service may affect service limits and prior authorization 51.26 thresholds. The informed consent may be revoked in writing at 51.27 any time by the person authorizing the billing of the health 51.28 plan. 51.29 (f) To the extent required by federal law, no school 51.30 district may withhold or delay any service that must be provided 51.31 under an individual education plan because a family has refused 51.32 to provide informed consent to bill a health plan for services 51.33 or a health plan company has refused to pay any, all, or a 51.34 portion of the cost of services billed. 51.35 (g) A school district may disclose information contained in 51.36 a student's individual education plan, consistent with section 52.1 13.32, subdivision 3(a), including records of the student's 52.2 diagnosis and treatment, to a health plan company only with the 52.3 signed and dated consent of the student's parent, or other 52.4 legally authorized individual. The school district shall 52.5 disclose only that information necessary for the health plan 52.6 company to decide matters of payment. A health plan company may 52.7 use the information only for making decisions regarding payment, 52.8 and any other use of the information and dissemination of the 52.9 information is prohibited. 52.10 Sec. 15. Minnesota Statutes 1996, section 120.1701, 52.11 subdivision 17, is amended to read: 52.12 Subd. 17. [MEDIATION PROCEDURE.] The commissioner, or the 52.13 commissioner's designee, of the state lead agency shall use 52.14 federal funds to provide mediation for the activities in 52.15 paragraphs (a) and (b). 52.16 (a) A parent may resolve a dispute regarding issues in 52.17 subdivision 16, paragraph (b), clause (5), through mediation. 52.18 If the parent chooses mediation, all public agencies involved in 52.19 the dispute shall participate in the mediation process. The 52.20 parent and the public agencies must complete the mediation 52.21 process within2030 calendar days of the date thecommissioner52.22 office of dispute resolution receives a parent's written request 52.23 for mediation. The mediation process may not be used to delay a 52.24 parent's right to a due process hearing. The resolution of the 52.25 mediation is not binding on any party. 52.26 (b) Resolution of a dispute through mediation, or other 52.27 form of alternative dispute resolution, is not limited to formal 52.28 disputes arising from the objection of a parent or guardian and 52.29 is not limited to the period following a request for a due 52.30 process hearing. 52.31 (c) The commissioner shall provide training and resources 52.32 to school districts to facilitate early identification of 52.33 disputes and access to mediation. 52.34(b)(d) The local primary agency may request mediation on 52.35 behalf of involved agencies when there are disputes between 52.36 agencies regarding responsibilities to coordinate, provide, pay 53.1 for, or facilitate payment for early intervention services. 53.2 Sec. 16. Minnesota Statutes 1996, section 120.173, 53.3 subdivision 1, is amended to read: 53.4 Subdivision 1. [COMMISSIONER APPROVAL.] The commissioner 53.5 of children, families, and learning may approve applications 53.6 from school districts to provide prevention services as an 53.7 alternative to special education and other compensatory programs 53.8during three school years. A district with an approved program 53.9 may provide instruction and services in a regular education 53.10 classroom, or an area learning center, to eligible pupils. 53.11 Pupils eligible to participate in the program are low-performing 53.12 pupils who, based on documented experience, the professional 53.13 judgment of a classroom teacher, or a team of licensed 53.14 professionals, would eventually qualify for special education 53.15 instruction or related services under section 120.17 if the 53.16 intervention services authorized by this section were 53.17 unavailable. Pupils may be provided services during extended 53.18 school days and throughout the entire year and through the 53.19 assurance of mastery program under section 124.3111. 53.20 Sec. 17. Minnesota Statutes 1996, section 120.173, 53.21 subdivision 6, is amended to read: 53.22 Subd. 6. [PUPIL RIGHTS.] A pupil participating in the 53.23 program must be individually evaluated according to the pupil's 53.24 actual abilities and needs. A pupil who is eligible for 53.25 services under section 120.17 is entitled to procedural 53.26 protections provided underPublic Law Number 94-142United 53.27 States Code, title 20, section 33, in any matter that affects 53.28 the identification, evaluation, placement, or change in 53.29 placement of a pupil. The district must ensure the protection 53.30 of a pupil's civil rights, provide equal educational 53.31 opportunities, and prohibit discrimination. Failure to comply 53.32 with this subdivision will at least cause a district to become 53.33 ineligible to participate in the program. Notwithstanding rules 53.34 of the state board of education, a pupil's rights under this 53.35 section cannot be waived by the state board. 53.36 Sec. 18. Minnesota Statutes 1997 Supplement, section 54.1 120.181, is amended to read: 54.2 120.181 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 54.3 EDUCATION AND TRANSPORTATION.] 54.4 The responsibility for providing instruction and 54.5 transportation for a pupil without a disability who has a 54.6 short-term or temporary physical or emotional illness or 54.7 disability, as determined by the standards of the state board, 54.8 and who is temporarily placed for care and treatment for that 54.9 illness or disability, shall be determined as provided in this 54.10 section. 54.11 (a) The school district of residence of the pupil shall be 54.12 the district in which the pupil's parent or guardian resides, or 54.13 when neither the pupil's parent nor guardian resides within the 54.14 state and tuition has been denied, the district designated by 54.15 the commissioner of children, families, and learning. 54.16 (b) Prior to the placement of a pupil for care and 54.17 treatment, the district of residence shall be notified and 54.18 provided an opportunity to participate in the placement 54.19 decision. When an immediate emergency placement is necessary 54.20 and time does not permit resident district participation in the 54.21 placement decision, the district in which the pupil is 54.22 temporarily placed, if different from the district of residence, 54.23 shall notify the district of residence of the emergency 54.24 placement within 15 days of the placement. 54.25 (c) When a pupil without a disability is temporarily placed 54.26 for care and treatment in a day program and the pupil continues 54.27 to live within the district of residence during the care and 54.28 treatment, the district of residence shall provide instruction 54.29 and necessary transportation for the pupil. The district may 54.30 provide the instruction at a school within the district of 54.31 residence, at the pupil's residence, or in the case of a 54.32 placement outside of the resident district, in the district in 54.33 which the day treatment program is located by paying tuition to 54.34 that district. The district of placement may contract with a 54.35 facility to provide instruction by teachers licensed by the 54.36 state board of teaching. 55.1 (d) When a pupil without a disability is temporarily placed 55.2 in a residential program for care and treatment, the district in 55.3 which the pupil is placed shall provide instruction for the 55.4 pupil and necessary transportation while the pupil is receiving 55.5 instruction, and in the case of a placement outside of the 55.6 district of residence, the nonresident district shall bill the 55.7 district of residence for the actual cost of providing the 55.8 instruction for the regular school year and for summer school, 55.9 excluding transportation costs. When a pupil without a 55.10 disability is temporarily placed in a residential program 55.11 outside the district of residence, the administrator of the 55.12 court placing the pupil shall send timely written notice of the 55.13 placement to the district of residence. The district of 55.14 placement may contract with a residential facility to provide 55.15 instruction by teachers licensed by the state board of 55.16 Sec. 19. Minnesota Statutes 1996, section 124.078, is 55.17 amended to read: 55.18 124.078 [PERMANENT SCHOOL FUND ADVISORY COMMITTEE.] 55.19 A state permanent school fund advisory committee is 55.20 established to advise the department of natural resources on the 55.21 management of permanent school fund land, which is held in trust 55.22 for the school districts of the state. The advisory committee 55.23 shall consist of the following persons or their designees: the 55.24 chairs of the education committees of the legislature, the 55.25 chairs of the senate committee on finance and house committee on 55.26 ways and means, the chairs of the senate and house environment 55.27 and natural resources committees, the chair of the senate 55.28 environment and agriculture budget division committee, the chair 55.29 of the house environment, natural resources and agriculture 55.30 finance committee, the commissioner of children, families, and 55.31 learning, one superintendent from a nonmetropolitan district, 55.32 and one superintendent from a metropolitan area district. The 55.33 commissioner of natural resources shall serve as an ex officio 55.34 member. The school district superintendents shall be appointed 55.35 by the commissioner of children, families, and learning. 55.36 The advisory committee shall review the policies of the 56.1 department of natural resources and current statutes on 56.2 management of school trust fund lands at least semiannually and 56.3 shall recommend necessary changes in statutes, policy, and 56.4 implementation in order to ensure provident utilization of the 56.5 permanent school fund lands. An annual report of activities and 56.6 recommendations shall be submitted to the governor, the 56.7 president of the senate, and the speaker of the house. 56.8 teaching. For purposes of this section, the state correctional 56.9 facilities operated on a fee-for-service basis are considered to 56.10 be residential programs for care and treatment. 56.11 (e) The district of residence shall include the pupil in 56.12 its residence count of pupil units and pay tuition as provided 56.13 in section 124.18 to the district providing the instruction. 56.14 Transportation costs shall be paid by the district providing the 56.15 transportation and the state shall pay transportation aid to 56.16 that district. For purposes of computing state transportation 56.17 aid, pupils governed by this subdivision shall be included in 56.18 the disabled transportation category. 56.19 Sec. 20. Minnesota Statutes 1996, section 123.935, 56.20 subdivision 1, is amended to read: 56.21 Subdivision 1. [PROVIDED SERVICES.] The state board of 56.22 education shall promulgate rules under the provisions of chapter 56.23 14 requiring each school district or other intermediary service 56.24 area: (a) to provide each year upon formal request by a 56.25 specific date by or on behalf of a nonpublic school pupil 56.26 enrolled in a nonpublic school located in that district or area, 56.27 the same specific health services as are provided for public 56.28 school pupils by the district where the nonpublic school is 56.29 located; and (b) to provide each year upon formal request by a 56.30 specific date by or on behalf of a nonpublic school secondary 56.31 pupil enrolled in a nonpublic school located in that district or 56.32 area, the same specific guidance and counseling services as are 56.33 provided for public school secondary pupils by the district 56.34 where the nonpublic school is located. The district where the 56.35 nonpublic school is located shall provide the necessary 56.36 transportation within the district boundaries between the 57.1 nonpublic school and a public school or neutral site for 57.2 nonpublic school pupils who are provided pupil support services 57.3pursuant tounder this section if the district elects to provide 57.4 pupil support services at a site other than the nonpublic school. 57.5 Each request for pupil support services shall set forth the 57.6 guidance and counseling or health services requested by or on 57.7 behalf of all eligible nonpublic school pupils enrolled in a 57.8 given nonpublic school. No district or intermediary service 57.9 area shall expend an amount for these pupil support services 57.10 which exceeds the amount allotted to it under this section. 57.11 Sec. 21. Minnesota Statutes 1996, section 123.935, 57.12 subdivision 2, is amended to read: 57.13 Subd. 2. [LOCATION OF SERVICES.] Health and guidance and 57.14 counseling services may be provided to nonpublic school 57.15 pupilspursuant tounder this section at a public school, a 57.16 neutral site, the nonpublic school or any other suitable 57.17 location.Guidance and counseling services may be provided to57.18nonpublic school pupils pursuant to this section only at a57.19public school or a neutral site.District or intermediary 57.20 service area personnel and representatives of the nonpublic 57.21 school pupils receiving pupil support services shall hold an 57.22 annual consultation regarding the type of services, provider of 57.23 services, and the location of the provision of these services. 57.24 The district board or intermediary service area governing board 57.25 shall make the final decision on the location of the provision 57.26 of these services. 57.27 Sec. 22. Minnesota Statutes 1996, section 124.078, is 57.28 amended to read: 57.29 124.078 [PERMANENT SCHOOL FUND ADVISORY COMMITTEE.] 57.30 A state permanent school fund advisory committee is 57.31 established to advise the department of natural resources on the 57.32 management of permanent school fund land, which is held in trust 57.33 for the school districts of the state. The advisory committee 57.34 shall consist of the following persons or their designees: the 57.35 chairs of the education committees of the legislature, the 57.36 chairs of the senate committee on finance and house committee on 58.1 ways and means, the chairs of the senate and house environment 58.2 and natural resources committees, the chair of the senate 58.3 environment and agriculture budget division committee, the chair 58.4 of the house environment, natural resources and agriculture 58.5 finance committee, the commissioner of children, families, and 58.6 learning, one superintendent from a nonmetropolitan district, 58.7 and one superintendent from a metropolitan area district. The 58.8 commissioner of natural resources shall serve as an ex officio 58.9 member. The school district superintendents shall be appointed 58.10 by the commissioner of children, families, and learning. 58.11 The advisory committee shall review the policies of the 58.12 department of natural resources and current statutes on 58.13 management of school trust fund lands at least semiannually and 58.14 shall recommend necessary changes in statutes, policy, and 58.15 implementation in order to ensure provident utilization of the 58.16 permanent school fund lands. An annual report of activities and 58.17 recommendations shall be submitted to the governor, the 58.18 president of the senate, and the speaker of the house. 58.19 Sec. 23. Minnesota Statutes 1996, section 124.17, 58.20 subdivision 2, is amended to read: 58.21 Subd. 2. [AVERAGE DAILY MEMBERSHIP.] Membership for pupils 58.22 in grades kindergarten through 12 and for prekindergarten pupils 58.23 with disabilities shall mean the number of pupils on the current 58.24 roll of the school, counted from the date of entry until 58.25 withdrawal. The date of withdrawal shall mean the day the pupil 58.26 permanently leaves the school or the date it is officially known 58.27 that the pupil has left or has been legally excused. However, a 58.28 pupil, regardless of age, who has been absent from school for 15 58.29 consecutive school days during the regular school year or for 58.30 five consecutive school days during summer school or 58.31 intersession classes of flexible school year programs without 58.32 receiving instruction in the home or hospital shall be dropped 58.33 from the roll and classified as withdrawn. Nothing in this 58.34 section shall be construed as waiving the compulsory attendance 58.35 provisions cited in section 120.101. Average daily membership 58.36 shall equal the sum for all pupils of the number of days of the 59.1 school year each pupil is enrolled in the district's schools 59.2 divided by the number of days the schools are in session. Days 59.3 of summer school or intersession classes of flexible school year 59.4 programs shall only be included in the computation of membership 59.5 for pupils with a disability not appropriately servedat level59.64, 5, or 6 of the continuum of placement model described in59.7Minnesota Rules, part 3525.0200primarily in the regular 59.8 classroom. 59.9 Sec. 24. Minnesota Statutes 1997 Supplement, section 59.10 124.3111, subdivision 2, is amended to read: 59.11 Subd. 2. [ELIGIBLE PUPILS.] A pupil is eligible to receive 59.12 services through an assurance of mastery program if the pupil 59.13 has not demonstrated progress toward mastering the required 59.14 graduation standards, after receiving instruction that was 59.15 designed to enable the pupil to make progress toward mastering 59.16 the required graduation standards in a regular classroom 59.17 setting. A pupil also is eligible to receive services through 59.18 an assurance of mastery program if the pupil, based on the 59.19 professional judgment of a classroom teacher or a team of 59.20 licensed professionals, demonstrates a need for alternative 59.21 instructional strategies or interventions. To determine pupil 59.22 eligibility, a district must use a process adopted by the school 59.23 board to review curriculum and instruction, for the subjects and 59.24 at the grade level at which the district uses the revenue. 59.25 Sec. 25. Minnesota Statutes 1997 Supplement, section 59.26 124.3111, subdivision 3, is amended to read: 59.27 Subd. 3. [ELIGIBLE SERVICES.] (a) Assurance of mastery 59.28 programs may provide direct instructional services to an 59.29 eligible pupil, or a group of eligible pupils, under the 59.30 following conditions in paragraphs (b) to(d)(e). 59.31 (b) Instruction may be provided at one or more grade levels 59.32 from kindergarten to grade 8 and for students in grades 9 59.33 through 12 who have failed the basic skills tests. If an 59.34 assessment of pupils' needs within a district demonstrates that 59.35 the eligible pupils in grades kindergarten to grade 8 are being 59.36 appropriately served, a district may serve eligible pupils in 60.1 grades 9 to 12. 60.2 (c) Instruction must be provided under the supervision of 60.3 the eligible pupil's regular classroom teacher. Instruction may 60.4 be provided by the eligible pupil's classroom teacher, by 60.5 another teacher, by a team of teachers, or by an education 60.6 assistant or aide. A special education teacher may provide 60.7 instruction, but instruction that is provided under this section 60.8 is not eligible for aid under section 124.3201. 60.9 (d) The instruction that is provided must differ from the 60.10 initial instruction the pupil received in the regular classroom 60.11 setting. The instruction may differ by presenting different 60.12 curriculum than was initially presented in the regular classroom 60.13 or by presenting the same curriculum: 60.14 (1) at a different rate or in a different sequence than it 60.15 was initially presented; 60.16 (2) using different teaching methods or techniques than 60.17 were used initially; or 60.18 (3) using different instructional materials than were used 60.19 initially. 60.20 (e) Instruction must focus on preventive measures that meet 60.21 students' individual needs. 60.22 Sec. 26. Minnesota Statutes 1996, section 124.32, is 60.23 amended by adding a subdivision to read: 60.24 Subd. 13. [LITIGATION AND HEARING COSTS.] (a) For fiscal 60.25 year 1999 and thereafter, the commissioner of children, 60.26 families, and learning, or the commissioner's designee, shall 60.27 use federal funds to reimburse school districts for the 60.28 administrative costs of a due process hearing incurred under 60.29 section 120.17, subdivision 3b, paragraphs (e), (h), and (i), 60.30 including hearing officer fees, court reporter fees, mileage 60.31 costs, transcript costs, and rental of hearing rooms, but not 60.32 including district legal or attorney fees. In order to receive 60.33 federal aid under this paragraph, a school district shall submit 60.34 to the commissioner at the end of each school year itemized 60.35 actual costs for fees and other expenses under this paragraph. 60.36 Federal funds used for aid to school districts under this 61.1 paragraph shall be based on costs districts submitted during the 61.2 previous school year. 61.3 (b) For fiscal year 1999 and thereafter, a school district, 61.4 to the extent to which it prevails as prescribed by Rule 68 of 61.5 the Federal Rules of Civil Procedure, shall receive state aid 61.6 for litigation costs incurred after a request for a due process 61.7 hearing is served upon the parties based on 50 percent of the 61.8 costs associated with a due process hearing under section 61.9 120.17, subdivision 3b, paragraphs (e), (h), and (i), not 61.10 covered under paragraph (a), including hearing officer fees, 61.11 court reporter fees, expert witness fees, mileage costs, 61.12 transcript costs, cost of outside evaluations ordered by the 61.13 hearing officer, rental of hearing rooms, and district legal or 61.14 attorney fees. No more than 60 percent of the aid a school 61.15 district receives under this paragraph shall be for the costs of 61.16 district legal or attorney fees, which shall be available only 61.17 if the district can satisfactorily demonstrate to the 61.18 commissioner that it is the prevailing party under Rule 68 of 61.19 the Federal Rules of Civil Procedure, and the district has made 61.20 a good faith effort to resolve the dispute through mediation. 61.21 To receive aid under this paragraph, a school district shall 61.22 submit to the commissioner at the end of each school year 61.23 itemized actual costs associated with due process hearing and 61.24 indicate those costs for which federal funds are available under 61.25 paragraph (a). Aid under this paragraph for each school 61.26 district is based on costs submitted from the previous school 61.27 year. 61.28 Sec. 27. Minnesota Statutes 1997 Supplement, section 61.29 124.3201, subdivision 1, is amended to read: 61.30 Subdivision 1. [DEFINITIONS.] For the purposes of this 61.31 section and section 124.321, the definitions in this subdivision 61.32 apply. 61.33 (a) "Base year" for fiscal year19982000 and later fiscal 61.34 years means thesecondfiscal year preceding the fiscal year for 61.35 which aid will be paid. 61.36 (b) "Basic revenue" has the meaning given it in section 62.1 124A.22, subdivision 2. For the purposes of computing basic 62.2 revenue pursuant to this section, each child with a disability 62.3 shall be counted as prescribed in section 124.17, subdivision 1. 62.4 (c) "Essential personnel" means teachers, related services, 62.5 and support services staff providing direct services to students. 62.6 (d) "Average daily membership" has the meaning given it in 62.7 section 124.17. 62.8 (e) "Program growth factor" means 1.00 for fiscal year 2000 62.9 and later. 62.10 (f) "Aid percentage factor" means 60 percent for fiscal 62.11 year 1996, 70 percent for fiscal year 1997, 80 percent for 62.12 fiscal year 1998, 90 percent for fiscal year 1999, and 100 62.13 percent for fiscal years 2000 and later. 62.14 (g) "Levy percentage factor" means 100 minus the aid 62.15 percentage factor for that year. 62.16 Sec. 28. Minnesota Statutes 1997 Supplement, section 62.17 124.3201, subdivision 2, is amended to read: 62.18 Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] (a) The special 62.19 education base revenue equals the sum of the following amounts 62.20 computed using base year data: 62.21 (1) 68 percent of the salary of each essential person 62.22 employed in the district's program for children with a 62.23 disability during theregular schoolfiscal year, whether the 62.24 person is employed by one or more districts or a Minnesota 62.25 correctional facility operating on a fee-for-service basis; 62.26 (2) for the Minnesota state academy for the deaf or the 62.27 Minnesota state academy for the blind, 68 percent of the salary 62.28 of each instructional aide assigned to a child attending the 62.29 academy, if that aide is required by the child's individual 62.30 education plan; 62.31 (3) for special instruction and services provided to any 62.32 pupil by contracting with public, private, or voluntary agencies 62.33 other than school districts, in place of special instruction and 62.34 services provided by the district, 52 percent of the difference 62.35 between the amount of the contract and the basic revenue of the 62.36 district for that pupil for the fraction of the school day the 63.1 pupil receives services under the contract; 63.2 (4) for special instruction and services provided to any 63.3 pupil by contracting for services with public, private, or 63.4 voluntary agencies other than school districts, that are 63.5 supplementary to a full educational program provided by the 63.6 school district, 52 percent of the amount of the contract for 63.7 that pupil; 63.8 (5) for supplies and equipment purchased or rented for use 63.9 in the instruction of children with a disability an amount equal 63.10 to 47 percent of the sum actually expended by the district, or a 63.11 Minnesota correctional facility operating on a fee-for-service 63.12 basis, but not to exceed an average of $47 in any one school 63.13 year for each child with a disability receiving instruction; 63.14 (6) for fiscal years 1997 and later, special education base 63.15 revenue shall include amounts under clauses (1) to (5) for 63.16 special education summer programs provided during the base year 63.17 for that fiscal year; and 63.18 (7) for fiscal years 1999 and later, the cost of providing 63.19 transportation services for children with disabilities under 63.20 section 124.225, subdivision 1, paragraph (b), clause (4). 63.21 (b) If requested by a school district operating a special 63.22 education program during the base year for less than the full 63.23schoolfiscal year, or a school district in which is located a 63.24 Minnesota correctional facility operating on a fee-for-service 63.25 basis for less than the full fiscal year, the commissioner may 63.26 adjust the base revenue to reflect the expenditures that would 63.27 have occurred during the base year had the program been operated 63.28 for the fullschoolfiscal year. 63.29 (c) Notwithstanding paragraphs (a) and (b), the portion of 63.30 a school district's base revenue attributable to a Minnesota 63.31 correctional facility operating on a fee-for-service basis 63.32 during the facilities first year of operating on a 63.33 fee-for-service basis shall be computed using current year data. 63.34 Sec. 29. Minnesota Statutes 1997 Supplement, section 63.35 124.3201, subdivision 4, is amended to read: 63.36 Subd. 4. [STATE TOTAL SPECIAL EDUCATION REVENUE.] (a) The 64.1 state total special education revenue for fiscal year 1998 64.2 equals $358,542,000. The state total special education revenue 64.3 for fiscal year 1999 equals $435,322,000. The state total 64.4 special education revenue for later fiscal years equals: 64.5 (1) the state total special education revenue for the 64.6 preceding fiscal year; times 64.7 (2) the program growth factor; times 64.8 (3) the ratio of the state total average daily membership 64.9 for the current fiscal year to the state total average daily 64.10 membership for the preceding fiscal year. 64.11 (b) For fiscal years 2000 and later, the commissioner shall 64.12 increase the state total special education revenue amount by the 64.13 amount of any decrease in the excess cost aid program due to 64.14 eliminating the two-year lag under subdivision 1. 64.15 Sec. 30. Minnesota Statutes 1996, section 124.323, is 64.16 amended by adding a subdivision to read: 64.17 Subd. 4. [TUITION.] Notwithstanding section 120.17, for 64.18 children who are nonresidents of Minnesota, receive services 64.19 under section 124.3201, subdivisions 1 and 2, and are placed in 64.20 the serving school district by court action, the serving school 64.21 district shall submit unreimbursed tuition bills for eligible 64.22 services to the department of children, families, and learning 64.23 instead of the resident school district. To be eligible for 64.24 reimbursement, the serving school district, as part of its child 64.25 intake procedures, must demonstrate good faith effort to obtain 64.26 from the placing agency a financial commitment to pay tuition 64.27 costs. 64.28 Sec. 31. Minnesota Statutes 1996, section 124A.034, 64.29 subdivision 2, is amended to read: 64.30 Subd. 2. [LOCATION OF SERVICES.] (a) Public school 64.31 programs that provide instruction in core curriculum may be 64.32 provided to shared time pupils only at a public school building; 64.33provided, however, that special instruction and services for64.34children with a disability required pursuant to section 120.1764.35may also be provided at a neutral site as defined in section64.36123.932,public school programs, excluding programs that provide 65.1 instruction in core curriculum, may be provided to shared time 65.2 pupils at a public school building, a neutral site, the 65.3 nonpublic school, or any other suitable location. Guidance and 65.4 counseling and diagnostic and health services requiredpursuant65.5tounder section 120.17 mayalsobe provided at a nonpublic 65.6 school building. As used in this subdivision, "diagnostic 65.7 services" means speech, hearing, vision, psychological, medical 65.8 and dental diagnostic services and "health services" means 65.9 physician, nursing or optometric services provided to pupils in 65.10 the field of physical and mental health. 65.11 (b) For those children with a disability under section 65.12 120.17 who attend nonpublic school and for whom a free and 65.13 appropriate education is available at a public school, a school 65.14 district may provide special instruction and services at the 65.15 nonpublic school building only to the extent required under the 65.16 Individuals with Disabilities Education Act, Public Law Number 65.17 105-17, as amended. A school district may provide special 65.18 instruction and services for such children at a neutral site as 65.19 defined in section 123.932, subdivision 9. 65.20 Sec. 32. Minnesota Statutes 1996, section 124A.036, 65.21 subdivision 1a, is amended to read: 65.22 Subd. 1a. [REPORTING; REVENUE FOR HOMELESS.] For all 65.23 school purposes, unless otherwise specifically provided by law, 65.24 a homeless pupilmust be consideredis a resident of the school 65.25 districtthat enrolls the pupilin which the homeless shelter or 65.26 other program, center, or facility assisting the homeless pupil 65.27 or the pupil's family is located. 65.28 Sec. 33. Minnesota Statutes 1996, section 124A.036, is 65.29 amended by adding a subdivision to read: 65.30 Subd. 1b. [REVENUE FOR CHILDREN OF DIVORCED PARENTS.] (a) 65.31 In those instances when the divorced parents share joint 65.32 physical custody of the child and the divorced parents reside in 65.33 different school districts, for all school purposes, unless 65.34 otherwise specifically provided by law, the child must be 65.35 considered a resident of the school district in which the child 65.36 resides for the majority of the school year, as indicated by the 66.1 child's parents. 66.2 (b) When the child of divorced parents under paragraph (a) 66.3 resides with each parent on alternate weeks, the parents shall 66.4 transport the child to the border of the resident school 66.5 district during those weeks when the child resides in the 66.6 nonresident school district. 66.7 Sec. 34. Minnesota Statutes 1996, section 124A.036, 66.8 subdivision 4, is amended to read: 66.9 Subd. 4. [STATE AGENCY AND COURT PLACEMENTS.] If a state 66.10 agency or a court of the state desires to place a child in a 66.11 school district which is not the child's district of 66.12 residence or to place a pupil who is a parent under section 66.13 120.101, subdivision 3, in a school district which is not the 66.14 school district in which the pupil's biological or adoptive 66.15 parent or designated guardian resides, that agency or court 66.16 shall, prior to placement, allow the district of residence an 66.17 opportunity to participate in the placement decision and notify 66.18 the district of residence, the district of attendance and the 66.19 commissioner of children, families, and learning of the 66.20 placement decision. When a state agency or court determines 66.21 that an immediate emergency placement is necessary and that time 66.22 does not permit district participation in the placement decision 66.23 or notice to the districts and the commissioner of children, 66.24 families, and learning of the placement decision prior to the 66.25 placement, the agency or court may make the decision and 66.26 placement without that participation or prior notice. The 66.27 agency or court shall notify the district of residence, the 66.28 district of attendance and the commissioner of children, 66.29 families, and learning of an emergency placement within 15 days 66.30 of the placement. 66.31 Sec. 35. Minnesota Statutes 1996, section 124C.45, 66.32 subdivision 2, is amended to read: 66.33 Subd. 2. [ACCESS TO SERVICES.] A center shall have access 66.34 to the district's regular education programs, special education 66.35 programs, technology facilities, and staff. It may contract 66.36 with individuals or post-secondary institutions. It shall seek 67.1 the involvement of community education programs, post-secondary 67.2 institutions, interagency collaboratives, community resources, 67.3 businesses, and other federal, state, and local public agencies. 67.4 Sec. 36. Minnesota Statutes 1997 Supplement, section 67.5 124C.46, subdivision 1, is amended to read: 67.6 Subdivision 1. [PROGRAM FOCUS.] (a) The programs and 67.7 services of a center must focus on academic and learning skills, 67.8 applied learning opportunities, trade and vocational skills, 67.9 work-based learning opportunities, work experience, youth 67.10 service to the community, and transition services. Applied 67.11 learning, work-based learning, and service learning may best be 67.12 developed in collaboration with a local education and 67.13 transitions partnership. In addition to offering programs, the 67.14 center shall coordinate the use of other available educational 67.15 services, special education services, social services, health 67.16 services, and post-secondary institutions in the community and 67.17 services area. 67.18 (b) Consistent with the requirements of sections 127.26 to 67.19 127.39, a school district may provide an alternative education 67.20 program for a student who is within the compulsory attendance 67.21 age under section 120.06 and who is involved in severe or 67.22 repeated disciplinary action. 67.23 (c) Area learning centers are encouraged to offer 67.24 extended-day and extended-year programs to pupils who are at 67.25 risk of not meeting state graduation standards. 67.26 Sec. 37. Minnesota Statutes 1997 Supplement, section 67.27 124C.46, subdivision 2, is amended to read: 67.28 Subd. 2. [PEOPLE TO BE SERVED.] A center shall provide 67.29 programs for secondary pupils and adults. A center may also 67.30 provide programs and services for elementary and secondary 67.31 pupils who are not attending the center to assist them in being 67.32 successful in school. An individual education plan team may 67.33 identify a center as an appropriate placement to the extent a 67.34 center can provide the student with the appropriate special 67.35 education services described in the student's plan. Pupils 67.36 eligible to be served are those age five to adults2122 and 68.1 older who qualify under the graduation incentives program in 68.2 section 126.22, subdivision 2, or those pupils who are eligible 68.3 to receive special education services under section 120.17. 68.4 Sec. 38. Minnesota Statutes 1996, section 124C.47, is 68.5 amended to read: 68.6 124C.47 [RESOURCE CENTER FOR OTHER PROGRAMS.] 68.7 An area learning center must serve as a resource for other 68.8 districts, educational, community, and business organizations. 68.9 The center may charge a fee for these services. The following 68.10 services shall be provided for a region or the state: 68.11 (1) information and research for alternative programs; 68.12 (2) regional or state workshops on awareness, 68.13 identification, programs, and support for these pupils;and68.14 (3) recommendations for staff qualifications to ensure the 68.15 most qualified staff can be selected for the programs; and 68.16 (4) recommendations for successful learning programs for 68.17 special education students placed in an alternative setting. 68.18 Sec. 39. Minnesota Statutes 1996, section 124C.48, is 68.19 amended by adding a subdivision to read: 68.20 Subd. 3. [SPECIAL EDUCATION REVENUE.] Payment of special 68.21 education revenue for nonresident pupils enrolled in the center 68.22 must be made according to section 120.17, subdivision 6. 68.23 Sec. 40. Minnesota Statutes 1996, section 126.237, is 68.24 amended to read: 68.25 126.237 [ALTERNATE INSTRUCTION REQUIRED.] 68.26 (a) Before a pupil is referred for a special education 68.27 assessment, the district must conduct and document at least two 68.28 instructional strategies, alternatives, or interventions while 68.29 the pupil is in the regular classroom. The pupil's teacher must 68.30 provide the documentation. A special education assessment team 68.31 may waive this requirement when they determine the pupil's need 68.32 for the assessment is urgent. This section may not be used to 68.33 deny a pupil's right to a special education assessment. 68.34 (b) A school district shall adopt procedures for using 68.35 alternative intervention services, including the assurance of 68.36 mastery program under section 124.3111 and the first grade 69.1 preparedness program under section 124.2613, to serve at-risk 69.2 students who demonstrate a need for alternative instructional 69.3 strategies or interventions. 69.4 Sec. 41. Minnesota Statutes 1996, section 127.27, 69.5 subdivision 2, is amended to read: 69.6 Subd. 2. [DISMISSAL.] "Dismissal" means the denial of the 69.7appropriatecurrent educational program to any pupil, including 69.8 exclusion, expulsion, and suspension. It does not include 69.9 removal from class. 69.10 Sec. 42. Minnesota Statutes 1996, section 127.27, 69.11 subdivision 4, is amended to read: 69.12 Subd. 4. [EXCLUSION.] "Exclusion" means an action taken by 69.13 the school board to prevent enrollment or reenrollment of a 69.14 pupil for a period that shall not extend beyond the end of the 69.15 current school year. 69.16 Sec. 43. Minnesota Statutes 1997 Supplement, section 69.17 127.27, subdivision 10, is amended to read: 69.18 Subd. 10. [SUSPENSION.] "Suspension" means an action by 69.19 the school administration, under rules promulgated by the school 69.20 board, prohibiting a pupil from attending school for a period of 69.21 no more than ten school days. If a suspension is longer than 69.22 five days, the suspending administrator must provide the 69.23 superintendent with a reason for the longer suspension. This 69.24 definition does not apply to dismissal from school for one 69.25 school day or less, except as provided in federal law for a 69.26 student with a disability. Each suspension actionshallmay 69.27 include a readmission plan. The readmission plan shall include, 69.28 where appropriate, a provision for implementing alternative 69.29 educational services upon readmission and may not be used to 69.30 extend the current suspension. The school administration may 69.31 not impose consecutive suspensions against the same pupil for 69.32 the same course of conduct, or incident of misconduct, except 69.33 where the pupil will create an immediate and substantial danger 69.34 to self or to surrounding persons or property, or where the 69.35 district is in the process of initiating an expulsion, in which 69.36 case the school administration may extend the suspensionupto a 70.1 total of 15 days. In the case of a pupil with a disability,a70.2suspension may not exceed ten school daysschool districts must 70.3 comply with applicable federal law. The school administration 70.4 shall implement alternative educational servicesto the extent70.5thatwhen the suspension exceedsfiveten days. A separate 70.6 administrative conference is required for each period of 70.7 suspension. 70.8 Sec. 44. Minnesota Statutes 1997 Supplement, section 70.9 127.27, subdivision 11, is amended to read: 70.10 Subd. 11. [ALTERNATIVE EDUCATIONAL SERVICES.] "Alternative 70.11 educational services" may include, but are not limited to, 70.12 special tutoring, modified curriculum, modified instruction, 70.13 other modifications or adaptations, instruction through 70.14 electronic media, special education services as indicated by 70.15 appropriate assessment, homebound instruction, supervised 70.16 homework, or enrollment in another district or in an alternative 70.17 learning center under section 124C.45 selected to allow the 70.18 pupil to progress toward meeting graduation standards under 70.19 section 121.11, subdivision 7c, although in a different setting. 70.20 Sec. 45. Minnesota Statutes 1997 Supplement, section 70.21 127.281, is amended to read: 70.22 127.281 [EXCLUSION AND EXPULSION OF PUPILS WITH A 70.23 DISABILITY.] 70.24 When a pupil who has an individual education plan is 70.25 excluded or expelled under sections 127.26 to 127.39 for 70.26 misbehavior that is not a manifestation of the pupil's 70.27 disability, the district shall continue to provide special 70.28 education and related services after a period of suspension, if 70.29 suspension is imposed. The district shall initiate a review of 70.30 the individual education plan withinfiveten school days of 70.31 commencing an expulsion, exclusion, or a suspension. 70.32 Sec. 46. Minnesota Statutes 1997 Supplement, section 70.33 127.31, subdivision 15, is amended to read: 70.34 Subd. 15. [ADMISSION OR READMISSION PLAN.] A school 70.35 administrator shall prepare and enforce an admission or 70.36 readmission plan for any pupil who issuspended,excluded,or 71.1 expelled from school. The plan may include measures to improve 71.2 the pupil's behavior and require parental involvement in the 71.3 admission or readmission process, and may indicate the 71.4 consequences to the pupil of not improving the pupil's behavior. 71.5 Sec. 47. Minnesota Statutes 1997 Supplement, section 71.6 127.32, is amended to read: 71.7 127.32 [APPEAL.] 71.8 A party to an exclusion or expulsion decision made under 71.9 sections 127.26 to 127.39 may appeal the decision to the 71.10 commissioner of children, families, and learning within 21 71.11 calendar days of school board action. Upon being served with a 71.12 notice of appeal, the district shall provide the commissioner 71.13 and the parent or guardian with a complete copy of the hearing 71.14 record within five days of its receipt of the notice of appeal. 71.15 All written submissions by the appellant must be submitted and 71.16 served on the respondent within ten days of its actual receipt 71.17 of the transcript. All written submissions by the respondent 71.18 must be submitted and served on the appellant within ten days of 71.19 its actual receipt of the written submissions of the appellant. 71.20 The decision of the school board must be implemented during the 71.21 appeal to the commissioner. 71.22 In an appeal under this section, the commissioner may 71.23 affirm the decision of the agency, may remand the decision for 71.24 additional findings, or may reverse or modify the decision if 71.25 the substantial rights of the petitionersmayhave been 71.26 prejudiced because the administrative findings, inferences, 71.27 conclusions, or decisions are: 71.28 (1) in violation of constitutional provisions; 71.29 (2) in excess of the statutory authority or jurisdiction of 71.30 the school district; 71.31 (3) made upon unlawful procedure, except as provided in 71.32 section 127.311; 71.33 (4) affected by other error of law; 71.34 (5) unsupported by substantial evidence in view of the 71.35 entire record submitted; or 71.36 (6) arbitrary or capricious. 72.1 The commissioner or the commissioner's representative shall make 72.2 a final decision based upon the recordof evidence presented at72.3the hearing. The commissioner shall issue a decision within 30 72.4 calendar days of receiving the entire record and the parties' 72.5 written submission on appeal. The commissioner's decision shall 72.6 be final and binding upon the parties after the time for appeal 72.7 expires under section 127.33. 72.8 Sec. 48. Minnesota Statutes 1997 Supplement, section 72.9 127.36, subdivision 1, is amended to read: 72.10 Subdivision 1. [EXCLUSIONS AND EXPULSIONS.] The school 72.11 board shall report each exclusion or expulsion within 30 days of 72.12 the effective date of the action to the commissioner of 72.13 children, families, and learning. This report shall include a 72.14 statement of alternative educational services given the pupil 72.15before beginning exclusion or expulsion proceedings,and the 72.16 reason for, the effective date, and the duration of the 72.17 exclusion or expulsion. 72.18 Sec. 49. Minnesota Statutes 1997 Supplement, section 72.19 127.38, is amended to read: 72.20 127.38 [POLICIES TO BE ESTABLISHED.] 72.21 (a) The commissioner of children, families, and learning 72.22 shall promulgate guidelines to assist each school board. Each 72.23 school board shall establish uniform criteria for dismissal and 72.24 adopt written policies and rules to effectuate the purposes of 72.25 sections 127.26 to 127.39. The policies shall emphasize 72.26 preventing dismissals through early detection of problems and 72.27 shall be designed to address students' inappropriate behavior 72.28 from recurring. The policies shall recognize the continuing 72.29 responsibility of the school for the education of the pupil 72.30 during the dismissal period. The alternative educational 72.31 services, if the pupil wishes to take advantage of them, must be 72.32 adequate to allow the pupil to make progress towards meeting the 72.33 graduation standards adopted under section 121.11, subdivision 72.34 7c, and, at a minimum, appropriate to the grade level the pupil 72.35 would have been enrolled in if the pupil had not been dismissed, 72.36 and help prepare the pupil for readmission. 73.1 (b) An area learning center under section 124C.45 may not 73.2 prohibit an expelled or excluded pupil from enrolling solely 73.3 because a district expelled or excluded the pupil. The board of 73.4 the area learning center may use the provisions of The Pupil 73.5 Fair Dismissal Act to exclude a pupil or to require an admission 73.6 plan. 73.7 (c) The commissioner shall actively encourage and assist 73.8 school districts to cooperatively establish alternative 73.9 educational services within school buildings or at alternative 73.10 program sites that offer instruction to pupils who are dismissed 73.11 from school for willfully engaging in dangerous, disruptive, or 73.12 violent behavior, including for possessing a firearm in a school 73.13 zone. 73.14 Sec. 50. Minnesota Statutes 1996, section 256B.0625, 73.15 subdivision 26, is amended to read: 73.16 Subd. 26. [SPECIAL EDUCATION SERVICES.] Medical assistance 73.17 covers medical services identified in a recipient's 73.18 individualized education plan and covered under the medical 73.19 assistance state plan. The services may be provided by a 73.20 Minnesota school district that is enrolled as a medical 73.21 assistance provider or its subcontractor, and only if the 73.22 services meet all the requirements otherwise applicable if the 73.23 service had been provided by a provider other than a school 73.24 district, in the following areas: medical necessity, 73.25 physician's orders, documentation, personnel qualifications, and 73.26 prior authorization requirements. Services of a speech-language 73.27 pathologist provided under this section are covered 73.28 notwithstanding Minnesota Rules, part 9505.0390, subpart 1, item 73.29 L, if the person: 73.30 (1) holds a masters degree in speech-language pathology; 73.31 (2) is licensed by the Minnesota board of teaching as an 73.32 educational speech-language pathologist; and 73.33 (3) either has a certificate of clinical competence from 73.34 the American Speech and Hearing Association, has completed the 73.35 equivalent educational requirements and work experience 73.36 necessary for the certificate or has completed the academic 74.1 program and is acquiring supervised work experience to qualify 74.2 for the certificate. Medical assistance coverage for medically 74.3 necessary services provided under other subdivisions in this 74.4 section may not be denied solely on the basis that the same or 74.5 similar services are covered under this subdivision. 74.6 Sec. 51. Laws 1997, First Special Session chapter 4, 74.7 article 2, section 51, subdivision 2, is amended to read: 74.8 Subd. 2. [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 74.9 For grants to American Indian language and culture education 74.10 programs according to Minnesota Statutes, section 126.54, 74.11 subdivision 1: 74.12 $591,000 ..... 1998 74.13$591,000$716,000 ..... 1999 74.14 The 1998 appropriation includes $59,000 for 1997 and 74.15 $532,000 for 1998. 74.16 The 1999 appropriation includes $59,000 for 1998 and 74.17$532,000$657,000 for 1999. 74.18 Any balance in the first year does not cancel but is 74.19 available in the second year. 74.20 Sec. 52. Laws 1997, First Special Session chapter 4, 74.21 article 2, section 51, subdivision 4, is amended to read: 74.22 Subd. 4. [AMERICAN INDIAN POST-SECONDARY PREPARATION 74.23 GRANTS.] For American Indian post-secondary preparation grants 74.24 according to Minnesota Statutes, section 124.481: 74.25 $857,000 ..... 1998 74.26$857,000$982,000 ..... 1999 74.27 Any balance in the first year does not cancel but is 74.28 available in the second year. 74.29 Sec. 53. Laws 1997, First Special Session chapter 4, 74.30 article 2, section 51, subdivision 5, is amended to read: 74.31 Subd. 5. [AMERICAN INDIAN SCHOLARSHIPS.] For American 74.32 Indian scholarships according to Minnesota Statutes, section 74.33 124.48: 74.34 $1,600,000 ..... 1998 74.35$1,600,000$1,725,000 ..... 1999 74.36 Any balance in the first year does not cancel but is 75.1 available in the second year. 75.2 Sec. 54. [RULES AFFECTING SPECIAL EDUCATION INSTRUCTION 75.3 AND SERVICES.] 75.4 (a) The state board of education must amend all rules 75.5 relating to providing special instruction and services to 75.6 children with a disability so that the rules do not impose 75.7 requirements that exceed federal law. The state board, with the 75.8 assistance of the department of children, families, and 75.9 learning, shall provide a written report to the education 75.10 committees of the legislature by January 1, 1999, identifying 75.11 and explaining those state special education rules that exceed 75.12 federal special education requirements by improving services or 75.13 efficiency or reducing state or district costs. The state board 75.14 may use the expedited process under Minnesota Statutes, section 75.15 14.389, to amend these rules. 75.16 (b) As of July 1, 1999, any rules relating to providing 75.17 special instruction and services to children with a disability 75.18 are invalid to the extent they exceed the requirements in 75.19 federal law unless a law is enacted before July 1, 1999, 75.20 indicating the intent of the state to exceed one or more federal 75.21 requirements. 75.22 Sec. 55. [GRANTS TO IMPLEMENT CONSTRUCTIVE SCHOOL 75.23 DISCIPLINE POLICIES.] 75.24 Subdivision 1. [ESTABLISHMENT.] A grant program for fiscal 75.25 year 1999 is established to develop, implement, and evaluate 75.26 school discipline policies, consistent with the Pupil Fair 75.27 Dismissal Act of 1974 under Minnesota Statutes, sections 127.26 75.28 to 127.39 and 127.40 to 127.48. Discipline policies developed 75.29 under this section should be designed to enable students to 75.30 successfully return to the regular classroom setting after being 75.31 disciplined for misbehavior. Discipline policies should focus 75.32 on early intervention strategies that limit the need to provide 75.33 regular education students with additional special programs or 75.34 services. 75.35 Subd. 2. [ELIGIBILITY.] An applicant for a grant must be a 75.36 school site, school district, charter school, or provider of an 76.1 alternative education program. To be eligible for a grant, the 76.2 grant applicant must meet all of the following criteria: 76.3 (1) develop a plan to establish a school site mediation 76.4 board under Minnesota Statutes, sections 127.411 to 127.42, to 76.5 mediate issues relating to district or school site codes of 76.6 conduct that apply to regular and special education students; 76.7 (2) include in the code of conduct a plan to remove from 76.8 the regular classroom setting those students who violate the 76.9 code; 76.10 (3) provide students who violate the code with an 76.11 alternative education setting within the school or program site; 76.12 and 76.13 (4) make the alternative education setting a constructive 76.14 experience by using instructional materials tied to educational 76.15 standards, placing students in an alternative setting outside 76.16 the normal school day, involving parents in effecting 76.17 discipline, or developing intervention techniques such as 76.18 timeouts, among other alternatives. 76.19 Subd. 3. [APPLICATION PROCESS.] To obtain a grant to 76.20 implement constructive school discipline policies, a grant 76.21 applicant must submit an application to the commissioner of 76.22 children, families, and learning in the form and manner the 76.23 commissioner establishes. The application must describe how the 76.24 applicant will meet the eligibility criteria under subdivision 76.25 2. The commissioner may require the applicant to provide 76.26 additional information. 76.27 Subd. 4. [GRANT AWARDS.] The commissioner may award up to 76.28 five grants of up to $50,000. Grant recipients must be located 76.29 throughout the state and have diverse experiences with student 76.30 disciplinary matters. The amount of the grant shall be based on 76.31 the number of students the grant recipient anticipates will be 76.32 disciplined and on the alternative education settings the grant 76.33 recipient proposes to use. Grant recipients must use the grant 76.34 proceeds to accomplish the purposes of this section. 76.35 Subd. 5. [EVALUATION.] The commissioner shall evaluate the 76.36 grant sites and selected control sites to determine the impact 77.1 of the constructive discipline policy grant program on measures 77.2 of student behavior and performance, including at least, student 77.3 achievement and attendance, and the impact of the program on the 77.4 school site, student body, classroom, and school faculty. The 77.5 evaluation must also address the financial impact of the program 77.6 on the district and the school site. Upon implementing a 77.7 student code of conduct consistent with this section, the grant 77.8 recipient must cooperate in evaluating the impact of code 77.9 policies. As a part of the evaluation process, the grant 77.10 recipient must document student and parent response to code 77.11 policies over at least a three-year period. The commissioner 77.12 shall compile for the education committees of the legislature a 77.13 progress report by February 1, 1999, and a final report by 77.14 February 1, 2001, on the effectiveness and impact of discipline 77.15 policies. 77.16 Sec. 56. [SPEECH-LANGUAGE PATHOLOGISTS.] 77.17 The board of teaching shall allow individuals who hold a 77.18 certificate of clinical competence from the American 77.19 Speech-Language-Hearing Association to be licensed as 77.20 speech-language pathologists. 77.21 Sec. 57. [BOARD OF TEACHING; RULE CHANGES; SPEECH-LANGUAGE 77.22 SERVICES.] 77.23 The board of teaching, in order to comply with section 56, 77.24 shall by rule allow individuals who hold a certificate of 77.25 clinical competence from the American Speech-Language-Hearing 77.26 Association to be licensed as speech-language pathologists. 77.27 Sec. 58. [SPECIAL EDUCATION BASE ADJUSTMENT; ROCHESTER.] 77.28 Special education base revenue for independent school 77.29 district No. 535, Rochester, is increased by $150,000 per year 77.30 for fiscal years 1998 and 1999 to reflect the increased special 77.31 education costs associated with the opening of a new facility 77.32 for juvenile offenders in Olmsted county. 77.33 Sec. 59. [REPORT TO COMPARE FEDERAL AND STATE SPECIAL 77.34 EDUCATION LAW.] 77.35 The commissioner of children, families, and learning shall 77.36 prepare a report comparing existing and currently proposed 78.1 federal laws and regulations and state laws and rules governing 78.2 special education, indicating those state laws and rules 78.3 governing special education that exceed or expand upon minimum 78.4 requirements under federal special education law or regulations 78.5 and the rationale for the state to exceed or expand upon those 78.6 federal requirements. The commissioner shall make the report 78.7 available to the public, the education committees of the 78.8 legislature, and the state board by September 30, 1998, for 78.9 consideration in amending state rules under section 54. 78.10 Sec. 60. [APPROPRIATIONS.] 78.11 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 78.12 LEARNING.] The sums indicated in this section are appropriated 78.13 from the general fund to the department of children, families, 78.14 and learning for the fiscal years designated. 78.15 Subd. 2. [CONSTRUCTIVE SCHOOL DISCIPLINE POLICIES.] For 78.16 grants to develop, implement, and evaluate school discipline 78.17 policies under section 55: 78.18 $250,000 ..... 1999 78.19 Grant recipients may expend grant proceeds over a 78.20 three-year period. Of this amount, $13,500 is for performing an 78.21 evaluation. 78.22 Subd. 3. [STATEWIDE THIRD-PARTY BILLING SYSTEM; 78.23 ASSISTANCE.] For developing and implementing an effective and 78.24 efficient statewide third-party billing system under section 2: 78.25 $200,000 ..... 1999 78.26 Funds remain available until expended. 78.27 Subd. 4. [LITIGATION COSTS.] For paying 50 percent of the 78.28 litigation costs a district actually incurs under section 26, 78.29 paragraph (b): 78.30 $300,000 ..... 1999 78.31 If the amount appropriated is insufficient to fully fund 78.32 the aid for hearing and litigation costs under Minnesota 78.33 Statutes, section 124.32, subdivision 13, paragraph (b), the 78.34 commissioner shall prorate the appropriation to school districts 78.35 based on the amount of aid calculated for each district. 78.36 Subd. 5. [PROVIDING TECHNICAL ASSISTANCE.] For department 79.1 staff to provide technical assistance and training to school 79.2 districts and cooperative units under section 2: 79.3 $50,000 ..... 1999 79.4 Subd. 6. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 79.5 reimbursing serving school districts for unreimbursed eligible 79.6 expenditures attributable to children placed in the serving 79.7 school district by court action under Minnesota Statutes, 79.8 section 124.323: 79.9 $300,000 ..... 1999 79.10 Sec. 61. [PROVIDING TECHNICAL ASSISTANCE.] 79.11 $50,000 is appropriated in fiscal year 1999 from the 79.12 general fund to the commissioner of human services to provide 79.13 technical assistance and training under section 2. 79.14 Sec. 62. [REPEALER.] 79.15 Minnesota Rules, part 3525.2750, subpart 1, item B, is 79.16 repealed. 79.17 Sec. 63. [EFFECTIVE DATE.] 79.18 Sections 9, 24, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 79.19 57, and 58 are effective the day following final enactment. 79.20 ARTICLE 3 79.21 INTERAGENCY SERVICES AND LIFELONG LEARNING 79.22 Section 1. Minnesota Statutes 1996, section 120.1701, 79.23 subdivision 2, is amended to read: 79.24 Subd. 2. [DEFINITIONS.] For the purposes of this section 79.25 the following terms have the meaning given them. 79.26 (a) "Coordinate" means to provide ready access to a 79.27 community's services and resources to meet child and family 79.28 needs. 79.29 (b) "Core early intervention services" means services that 79.30 are available at no cost to children and families. These 79.31 services include: 79.32 (1) identification and referral; 79.33 (2) screening; 79.34 (3) evaluation; 79.35 (4) assessment; 79.36 (5) service coordination; 80.1 (6) special education and related services provided under 80.2 section 120.17, subdivision 3a, and United States Code, title 80.3 20, section 1401; and 80.4 (7) protection of parent and child rights by means of 80.5 procedural safeguards. 80.6 (c) "County board" means a county board established under 80.7 chapter 375. 80.8 (d) "Early intervention record" means any personally 80.9 identifiable information about a child or the child's family 80.10 that is generated by the early intervention system, and that 80.11 pertains to evaluation and assessment, development of an 80.12 individualized family service plan, and the delivery of early 80.13 intervention services. 80.14 (e) "Early intervention services" means services provided 80.15 in conformity with an individualized family service plan that 80.16 are designed to meet the special developmental needs of a child 80.17 eligible under Code of Federal Regulations, title 34, part 303, 80.18 and the needs of the child's family related to enhancing the 80.19 child's development and that are selected in collaboration with 80.20 the parent. These services include core early intervention 80.21 services and additional early intervention services listed in 80.22 subdivision 4 and services defined in Code of Federal 80.23 Regulations, title 34, section 303, et seq. 80.24 (f) "Early intervention system" means the total effort in 80.25 the state to meet the needs of eligible children and their 80.26 families, including, but not limited to: 80.27 (1) any public agency in the state that receives funds 80.28 under the Individuals with Disabilities Education Act, United 80.29 States Code, title 20, sections 1471 to 1485 (Part H, Public Law 80.30 Number 102-119); 80.31 (2) other state and local agencies administering programs 80.32 involved in the provision of early intervention services, 80.33 including, but not limited to: 80.34 (i) the Maternal and Child Health program under title V of 80.35 the Social Security Act, United States Code, title 42, sections 80.36 701 to 709; 81.1 (ii) the Individuals with Disabilities Education Act, 81.2 United States Code, title 20, sections 1411 to 1420 (Part B); 81.3 (iii) medical assistance under the Social Security Act, 81.4 United States Code, title 42, section 1396 et seq.; 81.5 (iv) the Developmental Disabilities Assistance and Bill of 81.6 Rights Act, United States Code, title 42, sections 6021 to 6030 81.7 (Part B); and 81.8 (v) the Head Start Act, United States Code, title 42, 81.9 sections 9831 to 9852; and 81.10 (3) services provided by private groups or third-party 81.11 payers in conformity with an individualized family service plan. 81.12 (g) "Eligibility for Part H" means eligibility for early 81.13 childhood special education under section 120.03 and Minnesota 81.14 Rules, part 3525.2335, subpart 1, items A and B. 81.15 (h) "Facilitate payment" means helping families access 81.16 necessary public or private assistance that provides payment for 81.17 services required to meet needs identified in a service plan, 81.18 individual education plan (IEP), individual service plan (ISP), 81.19 or individualized family service plan (IFSP), according to time 81.20 frames required by the plan. This may also include activities 81.21 to collect fees for services provided on a sliding fee basis, 81.22 where permitted by state law. 81.23 (i) "Individualized family service plan" or "IFSP" means a 81.24 written plan for providing services to a child and the child's 81.25 family. 81.26 (j) "Interagency child find systems" means activities 81.27 developed on an interagency basis with the involvement of 81.28 interagency early intervention committees and other relevant 81.29 community groups to actively seek out, identify, and refer 81.30 infants and young children with, or at risk of, disabilities, 81.31 and their families. 81.32 (k) "Local primary agency" means the agency designated 81.33 jointly by the school and county board under subdivision 4. 81.34 (l) "Natural environments" means the child's home and 81.35 community settings in which children without disabilities 81.36 participate. 82.1 (m) "Parent" means the biological parent with parental 82.2 rights, adoptive parent, legal guardian, or surrogate parent. 82.3(m)(n) "Part H state plan" means the annual state plan 82.4 application approved by the federal government under the 82.5 Individuals with Disabilities Education Act, United States Code, 82.6 title 20, section 1471 et seq. (Part H, Public Law Number 82.7 102-119). 82.8(n)(o) "Pay for" means using federal, state, local, and 82.9 private dollars available for early intervention services. 82.10(o)(p) "Respite" means short-term, temporary care provided 82.11 to a child with a disability due to the temporary absence or 82.12 need for relief of the family member or members or primary 82.13 caregiver, normally providing the care. 82.14(p)(q) "State lead agency" means the state agency 82.15 receiving federal funds under the Individuals with Disabilities 82.16 Education Act, United States Code, title 20, section 1471 et 82.17 seq. (Part H, Public Law Number 102-119). 82.18(q)(r) "Surrogate parent" means a person appointed by the 82.19 local education agency to assure that the rights of the child to 82.20 early intervention services are protected. A person cannot be a 82.21 surrogate parent to a child for whom the person provides early 82.22 intervention services. 82.23 Sec. 2. Minnesota Statutes 1997 Supplement, section 82.24 120.1701, subdivision 3, is amended to read: 82.25 Subd. 3. [STATE INTERAGENCY COORDINATING COUNCIL.] An 82.26 interagency coordinating council of at least 17, but not more 82.27 than 25 members is established, in compliance with Public Law 82.28 Number 102-119, section 682. The members shall be appointed by 82.29 the governor. Council members shall elect the council chair. 82.30 The representative of the commissioner of children, families, 82.31 and learning may not serve as the chair. The council shall be 82.32 composed of at least five parents, including persons of color, 82.33 of children with disabilities under age 12, including at least 82.34 three parents of a child with a disability under age seven, five 82.35 representatives of public or private providers of services for 82.36 children with disabilities under age five, including a special 83.1 education director, county social service director, local Head 83.2 Start director, and a community health services or public health 83.3 nursing administrator, one member of the senate, one member of 83.4 the house of representatives, one representative of teacher 83.5 preparation programs in early childhood-special education or 83.6 other preparation programs in early childhood intervention, at 83.7 least one representative of advocacy organizations for children 83.8 with disabilities under age five, one physician who cares for 83.9 young children with special health care needs, one 83.10 representative each from the commissioners of commerce, 83.11 children, families, and learning, health, human services,and83.12economic securitya representative from the state agency 83.13 responsible for child care, and a representative from Indian 83.14 health services or a tribal council. Section 15.059, 83.15 subdivisions 2 to 5, apply to the council. The council shall 83.16 meet at least quarterly. 83.17 The council shall address methods of implementing the state 83.18 policy of developing and implementing comprehensive, 83.19 coordinated, multidisciplinary interagency programs of early 83.20 intervention services for children with disabilities and their 83.21 families. 83.22 The duties of the council include recommending policies to 83.23 ensure a comprehensive and coordinated system of all state and 83.24 local agency services for children under age five with 83.25 disabilities and their families. The policies must address how 83.26 to incorporate each agency's services into a unified state and 83.27 local system of multidisciplinary assessment practices, 83.28 individual intervention plans, comprehensive systems to find 83.29 children in need of services, methods to improve public 83.30 awareness, and assistance in determining the role of interagency 83.31 early intervention committees. 83.32 Each year by June 1, the council shall recommend to the 83.33 governor and the commissioners of children, families, and 83.34 learning, health, human services, commerce, and economic 83.35 security policies for a comprehensive and coordinated system. 83.36 Notwithstanding any other law to the contrary, the state 84.1 interagency coordinating council shall expire on June 30, 2001. 84.2 Sec. 3. Minnesota Statutes 1996, section 120.1701, 84.3 subdivision 5, is amended to read: 84.4 Subd. 5. [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) 84.5 A school district, group of districts, or special education 84.6 cooperative, in cooperation with the health and human service 84.7 agencies located in the county or counties in which the district 84.8 or cooperative is located, shall establish an interagency early 84.9 intervention committee for children with disabilities under age 84.10 five and their families under this section, and for children 84.11 with disabilities ages three to 22 consistent with the 84.12 requirements under sections 120.1703 and 120.1705. Committees 84.13 shall include representatives of local and regional health, 84.14 education, and county human service agencies; county boards; 84.15 school boards; early childhood family education programs; 84.16 parents of young children with disabilities under age 12; 84.17 current service providers; and may also include representatives 84.18 from other private or public agencies and school nurses. The 84.19 committee shall elect a chair from among its members and shall 84.20 meet at least quarterly. 84.21 (b) The committee shall develop and implement interagency 84.22 policies and procedures concerning the following ongoing duties: 84.23 (1) develop public awareness systems designed to inform 84.24 potential recipient families of available programs and services; 84.25 (2) implement interagency child find systems designed to 84.26 actively seek out, identify, and refer infants and young 84.27 children with, or at risk of, disabilities and their families; 84.28 (3) establish and evaluate the identification, referral, 84.29 child and family assessment systems, procedural safeguard 84.30 process, and community learning systems to recommend, where 84.31 necessary, alterations and improvements; 84.32 (4) assure the development of individualized family service 84.33 plans for all eligible infants and toddlers with disabilities 84.34 from birth through age two, and their families, and individual 84.35 education plans and individual service plans when necessary to 84.36 appropriately serve children with disabilities, age three and 85.1 older, and their families and recommend assignment of financial 85.2 responsibilities to the appropriate agencies. Agencies are 85.3 encouraged to develop individual family service plans for 85.4 children with disabilities, age three and older; 85.5 (5) implement a process for assuring that services involve 85.6 cooperating agencies at all steps leading to individualized 85.7 programs; 85.8 (6) facilitate the development of a transitional plan if a 85.9 service provider is not recommended to continue to provide 85.10 services; 85.11 (7) identify the current services and funding being 85.12 provided within the community for children with disabilities 85.13 under age five and their families; 85.14 (8) develop a plan for the allocation and expenditure of 85.15 additional state and federal early intervention funds under 85.16 United States Code, title 20, section 1471 et seq. (Part H, 85.17 Public Law Number 102-119) and United States Code, title 20, 85.18 section 631, et seq. (Chapter I, Public Law Number 89-313); and 85.19 (9) develop a policy that is consistent with section 13.05, 85.20 subdivision 9, and federal law to enable a member of an 85.21 interagency early intervention committee to allow another member 85.22 access to data classified as not public. 85.23 (c) The local committee shall also: 85.24 (1) participate in needs assessments and program planning 85.25 activities conducted by local social service, health and 85.26 education agencies for young children with disabilities and 85.27 their families; 85.28 (2) review and comment on the early intervention section of 85.29 the total special education system for the district, the county 85.30 social service plan, the section or sections of the community 85.31 health services plan that address needs of and service 85.32 activities targeted to children with special health care needs, 85.33 and the section of the maternal and child health special project 85.34 grants that address needs of and service activities targeted to 85.35 children with chronic illness and disabilities; and 85.36 (3) prepare a yearly summary on the progress of the 86.1 community in serving young children with disabilities, and their 86.2 families, including the expenditure of funds, the identification86.3of unmet service needs identified on the individual family86.4services plan and other individualized plans, and local, state,86.5and federal policies impeding the implementation of this section. 86.6 (d) The summary must be organized following a format 86.7 prescribed by the commissioner of the state lead agency and must 86.8 be submitted to each of the local agencies and to the state 86.9 interagency coordinating council by October 1 of each year. 86.10 The departments of children, families, and learning, 86.11 health, and human services must provide assistance to the local 86.12 agencies in developing cooperative plans for providing services. 86.13 Sec. 4. Minnesota Statutes 1996, section 120.1701, 86.14 subdivision 11, is amended to read: 86.15 Subd. 11. [PAYOR OF LAST RESORT.](a) For fiscal years86.161995 and 1996,The state lead agency shallestablishmaintain a 86.17 reserve account from federal sources to pay for services in 86.18 dispute or to pay for early intervention services when local 86.19 agencies have exhausted all other public and private funds 86.20 available for Part H eligible children. 86.21(b) The lead agency shall report to the legislature by86.22January 1, 1996, regarding county board expenditures for early86.23intervention services and the continuing need and funding of the86.24reserve account.86.25 Sec. 5. Minnesota Statutes 1996, section 120.1701, 86.26 subdivision 17, is amended to read: 86.27 Subd. 17. [MEDIATION PROCEDURE.] The commissioner or 86.28 designee of the state lead agency shall use federal funds to 86.29 provide mediation for the activities in paragraphs (a) and (b). 86.30 (a) A parent may resolve a dispute regarding issues in 86.31 subdivision 16, paragraph (b), clause (5), through mediation. 86.32 If the parent chooses mediation, all public agencies involved in 86.33 the dispute shall participate in the mediation process. The 86.34 parent and the public agencies must complete the mediation 86.35 process within 20 calendar days of the date the commissioner 86.36 receives a parent's written request for mediation. The 87.1 mediation process may not be used to delay a parent's right to a 87.2 due process hearing. The resolution of the mediation is not 87.3 binding on any party. 87.4 (b) The local primary agency may request mediation on 87.5 behalf of involved agencies when there are disputes between 87.6 agencies regarding responsibilities to coordinate, provide, pay 87.7 for, or facilitate payment for early intervention services. 87.8 Sec. 6. [120.1703] [COORDINATED INTERAGENCY SERVICES.] 87.9 Subdivision 1. [CITATION.] Sections 120.1703 and 120.1705 87.10 shall be cited as the "Interagency Services for Children with 87.11 Disabilities Act." 87.12 Subd. 2. [PURPOSE.] It is the policy of the state to 87.13 develop and implement a coordinated, multidisciplinary, 87.14 interagency intervention service system for children ages three 87.15 to 22 with disabilities. 87.16 Subd. 3. [DEFINITIONS.] For purposes of sections 120.1703 87.17 and 120.1705, the following terms have the meanings given them: 87.18 (a) "Health plan" means: 87.19 (1) a health plan under section 62Q.01, subdivision 3; 87.20 (2) a county-based purchasing plan under section 256B.692; 87.21 (3) a self-insured health plan established by a local 87.22 government under section 471.617; or 87.23 (4) self-insured health coverage provided by the state to 87.24 its employees or retirees. 87.25 (b) For purposes of this section, "health plan company" 87.26 means an entity that issues a health plan as defined in 87.27 paragraph (a). 87.28 (c) "Individual interagency intervention plan" means a 87.29 standardized written plan describing those programs or services 87.30 and the accompanying funding sources available to eligible 87.31 children with disabilities. 87.32 (d) "Interagency intervention service system" means a 87.33 system that coordinates services and programs required in state 87.34 and federal law to meet the needs of eligible children with 87.35 disabilities ages three to 22, including: 87.36 (1) services provided under the following programs or 88.1 initiatives administered by state or local agencies: 88.2 (i) the maternal and child health program under title V of 88.3 the Social Security Act, United States Code, title 42, sections 88.4 701 to 709; 88.5 (ii) the Individuals with Disabilities Education Act under 88.6 United States Code, title 20, chapter 33, subchapter II, 88.7 sections 1411 to 1420; 88.8 (iii) medical assistance under the Social Security Act, 88.9 United States Code, title 42, chapter 7, subchapter XIX, section 88.10 1396, et seq.; 88.11 (iv) the Developmental Disabilities Assistance and Bill of 88.12 Rights Act, United States Code, title 42, chapter 75, subchapter 88.13 II, sections 6021 to 6030, Part B; 88.14 (v) the Head Start Act, United States Code, title 42, 88.15 chapter 105, subchapter II, sections 9831 to 9852; 88.16 (vi) rehabilitation services provided under chapter 268A; 88.17 (vii) juvenile court act services provided under sections 88.18 260.011 to 260.301; 88.19 (viii) the children's mental health collaboratives under 88.20 section 245.493; 88.21 (ix) the family service collaboratives under section 88.22 121.8355; 88.23 (x) the family community support plan under section 88.24 245.4881, subdivision 4; 88.25 (xi) the Minnesota care program under chapter 256L; 88.26 (xii) the community health services grants under chapter 88.27 145; 88.28 (xiii) the community social services act funding under the 88.29 Social Security Act, United States Code, title 42, sections 1397 88.30 to 1397f; and 88.31 (xiv) the community interagency transition committees under 88.32 section 120.17, subdivision 16; 88.33 (2) services provided under a health plan in conformity 88.34 with an individual family service plan or an individual 88.35 education plan; and 88.36 (3) additional appropriate services that local agencies and 89.1 counties provide on an individual need basis upon determining 89.2 eligibility and receiving a request from the interagency early 89.3 intervention committee and the child's parent. 89.4 (e) "Children with disabilities" has the meaning given in 89.5 section 120.03. 89.6 (f) A "standardized written plan" means those individual 89.7 services or programs available through the interagency 89.8 intervention service system to an eligible child other than the 89.9 services or programs described in the child's individual 89.10 education plan or the child's individual family service plan. 89.11 Subd. 4. [STATE INTERAGENCY COMMITTEE.] (a) The governor 89.12 shall convene by July 1, 1998, an 18-member interagency 89.13 committee to develop and implement a coordinated, 89.14 multidisciplinary, interagency intervention service system for 89.15 children with disabilities ages three to 22. The commissioners 89.16 of commerce, children, families, and learning, health, human 89.17 rights, human services, economic security, and corrections shall 89.18 each appoint two committee members from their departments; the 89.19 association of Minnesota counties shall appoint two county 89.20 representatives, one of whom shall be an elected official, as 89.21 committee members; and the Minnesota school boards association 89.22 and the school nurse association of Minnesota shall each appoint 89.23 one committee member. The committee shall select a chair from 89.24 among its members. The committee shall meet at least monthly. 89.25 (b) The committee shall: 89.26 (1) identify and assist in removing state and federal 89.27 barriers to local coordination of services provided to children 89.28 with disabilities; 89.29 (2) ensure adequate, equitable, and flexible funding 89.30 sources to streamline these services; 89.31 (3) develop guidelines for implementing policies that 89.32 ensure a comprehensive and coordinated system of all state and 89.33 local agency services, including multidisciplinary assessment 89.34 practices for children with disabilities ages three to 22; 89.35 (4) develop, consistent with federal law, a standardized 89.36 written plan for providing services to a child with 90.1 disabilities; 90.2 (5) identify how current systems for dispute resolution can 90.3 be coordinated and develop guidelines for that coordination; 90.4 (6) develop an evaluation process to measure the success of 90.5 state and local interagency efforts in improving the quality and 90.6 coordination of services to children with disabilities ages 90.7 three to 22; 90.8 (7) develop guidelines to assist the governing boards of 90.9 the interagency early intervention committees in carrying out 90.10 the duties assigned in section 120.1705, subdivision 1, 90.11 paragraph (b); and 90.12 (8) carry out other duties necessary to develop and 90.13 implement within communities a coordinated, multidisciplinary, 90.14 interagency intervention service system for children with 90.15 disabilities. 90.16 (c) The committee shall consult on an ongoing basis with 90.17 the state education advisory committee for special education and 90.18 the governor's interagency coordinating council in carrying out 90.19 its duties under this section, including assisting the governing 90.20 boards of the interagency early intervention committees. 90.21 Subd. 5. [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 90.22 state interagency committee shall issue a request for proposals 90.23 by January 1, 1999, to provide grants to the governing boards of 90.24 interagency intervention committees under section 120.1705 or a 90.25 combination of one or more counties and school districts to 90.26 establish five voluntary interagency intervention demonstration 90.27 projects. One grant shall be used to implement a coordinated 90.28 service system for all eligible children with disabilities up to 90.29 age five who received services under section 120.1701. Each 90.30 project must be operational by July 1, 1999. The governing 90.31 boards of the interagency early intervention committees and the 90.32 counties and school districts receiving project grants must 90.33 develop efficient ways to coordinate services and funding for 90.34 children with disabilities ages three to 22, consistent with the 90.35 requirements of this section and section 120.1705 and the 90.36 guidelines developed by the state interagency committee under 91.1 this section. 91.2 (b) The state interagency committee shall evaluate the 91.3 demonstration projects and provide the evaluation results to 91.4 interagency early intervention committees. 91.5 Subd. 6. [THIRD-PARTY LIABILITY.] Nothing in this section 91.6 and section 120.1705 relieves a health plan company, third-party 91.7 administrator or other third-party payer of an obligation to pay 91.8 for, or changes the validity of an obligation to pay for, 91.9 services provided to children with disabilities ages three to 22 91.10 and their families. 91.11 Subd. 7. [AGENCY OBLIGATION.] Nothing in this section and 91.12 section 120.1705 removes the obligation of the state, counties, 91.13 local school districts, a regional agency, or a local agency or 91.14 organization to comply with any federal or state law that 91.15 mandates responsibility for finding, assessing, delivering, 91.16 assuring, or paying for education or related services for 91.17 children with disabilities and their families. 91.18 Sec. 7. [120.1705] [INTERAGENCY EARLY INTERVENTION 91.19 COMMITTEE RESPONSIBILITIES.] 91.20 Subdivision 1. [ADDITIONAL DUTIES.] (a) The governing 91.21 boards of the interagency early intervention committees are 91.22 responsible for developing and implementing interagency policies 91.23 and procedures to coordinate services at the local level for 91.24 children with disabilities ages three to 22 under guidelines 91.25 established by the state interagency committee under section 91.26 120.1703, subdivision 4. Consistent with the requirements in 91.27 this section and section 120.1703, the governing boards of the 91.28 interagency early intervention committees shall organize as a 91.29 joint powers board under section 471.59 or enter into an 91.30 interagency agreement that establishes a governance structure. 91.31 (b) The governing board of each interagency early 91.32 intervention committee as defined in section 120.1701, 91.33 subdivision 5, paragraph (a), which may include a juvenile 91.34 justice professional, shall: 91.35 (1) identify and assist in removing state and federal 91.36 barriers to local coordination of services provided to children 92.1 with disabilities; 92.2 (2) ensure adequate, equitable, and flexible use of funding 92.3 by local agencies for these services; 92.4 (3) implement policies that ensure a comprehensive and 92.5 coordinated system of all state and local agency services, 92.6 including multidisciplinary assessment practices, for children 92.7 with disabilities ages three to 22; 92.8 (4) use a standardized written plan for providing services 92.9 to a child with disabilities developed under section 120.1703; 92.10 (5) access the coordinated dispute resolution system and 92.11 incorporate the guidelines for coordinating services at the 92.12 local level, consistent with section 120.1703; 92.13 (6) use the evaluation process to measure the success of 92.14 the local interagency effort in improving the quality and 92.15 coordination of services to children with disabilities ages 92.16 three to 22 consistent with section 120.1703; 92.17 (7) develop a transitional plan for children moving from 92.18 the interagency early childhood intervention system under 92.19 section 120.1701 into the interagency intervention service 92.20 system under this section; 92.21 (8) coordinate services and facilitate payment for services 92.22 from public and private institutions, agencies, and health plan 92.23 companies; and 92.24 (9) share needed information consistent with state and 92.25 federal data practices requirements. 92.26 Subd. 2. [SERVICES.] (a) Consistent with their training 92.27 and experience, physicians, other health care professionals 92.28 including school nurses, and education and human services 92.29 providers jointly must, with full participation of parents, 92.30 determine appropriate and medically necessary services for 92.31 eligible children with disabilities ages three to 22. The 92.32 services provided to the child under this section must conform 92.33 with the child's standardized written plan. The governing board 92.34 of an interagency early intervention committee must provide 92.35 those services contained in a child's individual education plan 92.36 and those services for which a legal obligation exists to the 93.1 extent funding is available. 93.2 (b) Nothing in this section and section 120.1703 increases 93.3 or decreases the obligation of the state, county, regional 93.4 agency, local school district, or local agency or organization 93.5 to pay for education, health care, or social services. 93.6 (c) A health plan may not exclude any medically necessary 93.7 covered service solely because the service is or could be 93.8 identified in a child's individual family service plan, 93.9 individual education plan, a plan established under section 504 93.10 of the federal Rehabilitation Act of 1973, or a student's 93.11 individual health plan. This paragraph reaffirms the obligation 93.12 of a health plan company to provide or pay for certain medically 93.13 necessary covered services, and encourages a health plan company 93.14 to coordinate this care with any other providers of similar 93.15 services. Also, a health plan company may not exclude from a 93.16 health plan any medically necessary covered service such as an 93.17 assessment or physical examination solely because the resulting 93.18 information may be used for an individual education plan or a 93.19 standardized written plan. 93.20 Subd. 3. [IMPLEMENTATION TIMELINE.] (a) By July 1, 2000, 93.21 all governing boards of interagency early intervention 93.22 committees statewide must implement a coordinated service system 93.23 for children with disabilities up to age five consistent with 93.24 the requirements of this section and section 120.1703 and the 93.25 evaluation results from the demonstration projects under section 93.26 120.1703, subdivision 5. Children with disabilities up to the 93.27 age of 22 shall be eligible for coordinated services and their 93.28 eligibility to receive such services under this section shall be 93.29 phased in over a four-year period as follows: 93.30 (1) July 1, 2001, children up to age nine become eligible; 93.31 (2) July 1, 2002, children up to age 14 become eligible; 93.32 (3) July 1, 2003, children up to age 18 become eligible; 93.33 and 93.34 (4) July 1, 2004, children up to age 22 become eligible. 93.35 Sec. 8. Minnesota Statutes 1997 Supplement, section 93.36 126.79, subdivision 3, is amended to read: 94.1 Subd. 3. [LOCAL PROGRAMS; APPLICATION PROCEDURE; GRANT 94.2 AWARDS.] The commissioner shall make grants to eligible 94.3 applicants to establish local learn and earn programs. Each 94.4 program shall operate for at least a four-year period. A local 94.5 program shall select its participants from among eligible 94.6 students who are entering or are in the ninth grade at the 94.7 inception of the program. A program may not refill a program 94.8 slot with another student if a student drops out of the program. 94.9 Students selected to participate in the program shall be 94.10 considered part of the program class and students who drop out 94.11 may return to the program at any time prior to graduation. 94.12 The commissioner shall establish the application procedure 94.13 for awarding grants under this section. The commissioner shall 94.14 begin awarding grants bySeptember 1, 1997May 1, 1998. 94.15 Sec. 9. Minnesota Statutes 1997 Supplement, section 94.16 126.79, subdivision 6, is amended to read: 94.17 Subd. 6. [PROGRAM COMPONENTS.] Each learn and earn 94.18 graduation achievement program must provide the opportunity for 94.19 participating students to complete: 94.20 (1) 250 hours each year, not including regular required 94.21 classroom hours, in basic education competency skills; 94.22 (2) 250 hours each year of service to the community 94.23service; and 94.24 (3) 250 hours each year of cultural enrichment and personal 94.25 development, including but not limited to adult mentoring; 94.26 participating in community cultural events; developing life 94.27 skills for use in the home, workplace, and community; and 94.28 learning to set goals, manage time, and make appropriate 94.29 behavior choices for varying social situations. 94.30 Sec. 10. Minnesota Statutes 1997 Supplement, section 94.31 126.79, subdivision 7, is amended to read: 94.32 Subd. 7. [PROGRAM INCENTIVES.] (a) Each participating 94.33 student shall receive a monetary stipend for each hour spent in 94.34 a program component activity, plus a bonus upon completion of 94.35 each component during each year of the program. 94.36 (b) An additional amount equal to or greater than each 95.1 student's earned stipends and bonuses must be deposited for the 95.2 student in a post-secondary opportunitiesinterest-bearing95.3 account, established by the commissioner through the higher 95.4 education services office. A student may, upon graduation from 95.5 high school, use the funds accumulated for the student toward 95.6 the costs, including tuition, books, and lab fees, of attending 95.7 a Minnesota post-secondary institution orparticipating in a95.8Minnesota post-secondary programin a career training program. 95.9 Funds accumulated for a student shall be available to the 95.10 student from the time the student graduates from high school 95.11 until ten years after the date the student entered the learn and 95.12 earn graduation achievement program. After ten years, the 95.13 commissioner shall close the student's account and any remaining 95.14 money in the account shall revert to the general fund. 95.15 The commissioner shall establish a procedure for providing 95.16 the monetary stipends and bonuses to students. The commissioner 95.17 may delegate this authority to grantees. 95.18 Sec. 11. Minnesota Statutes 1997 Supplement, section 95.19 126.79, subdivision 8, is amended to read: 95.20 Subd. 8. [PROGRAM COORDINATOR.] The local learn and earn 95.21 program coordinator must maintain contact with all participating 95.22 students and their families; work with the school to link 95.23 students with the resources needed to improve their educational 95.24 skills; arrange for service to the communityserviceand 95.25 cultural enrichment opportunities for students; maintain records 95.26 regarding student completion of program component hours; and 95.27 perform other administrative duties as necessary. A program 95.28 coordinator must, to the extent possible, agree to remain with 95.29 the program for four years to provide continuity of adult 95.30 contact to the participating students. 95.31 Sec. 12. Minnesota Statutes 1997 Supplement, section 95.32 126.79, subdivision 9, is amended to read: 95.33 Subd. 9. [EVALUATION AND REPORTS.] The commissioner shall 95.34 collect information about participating students and a 95.35 demographically similar control group and shall evaluate the 95.36 short-term and long-term benefits participating students receive 96.1 from the learn and earn graduation achievement program, based on 96.2 the outcome measures specified in subdivision 2, and any other 96.3 criteria established by the commissioner as part of the grant 96.4 application process. The evaluation must include a statistical 96.5 comparison of students participating in the program and the 96.6 control group. The commissioner shalltrackfollow 96.7 participating students and the control group for a minimum of 96.8 six years from the start of the program. The commissioner shall 96.9 submit a preliminary report to the governor and the chairs of 96.10 the senate and house committees having jurisdiction over 96.11 education and crime prevention by December 15,20002001, 96.12 regarding continuation of the learn and earn graduation 96.13 achievement program for participating schools and expansion of 96.14 the program to additional schools. The commissioner shall 96.15 submit a final report by December 15,20022003. 96.16 Sec. 13. Laws 1997, First Special Session chapter 4, 96.17 article 3, section 23, is amended by adding a subdivision to 96.18 read: 96.19 Subd. 4a. [PLANNING AND DESIGN GRANT.] (a) An eligible 96.20 lifework learning site applicant may apply for a one-time grant 96.21 to plan and design a lifework learning facility. The planning 96.22 and design grant shall not exceed $200,000 for a site. 96.23 (b) A planning and design grant recipient shall report to 96.24 the commissioner of children, families, and learning on the 96.25 planning and design of the lifework learning facility and the 96.26 ability to start up the site and maintain the facility. 96.27 Sec. 14. Laws 1997, First Special Session chapter 4, 96.28 article 3, section 25, subdivision 2, is amended to read: 96.29 Subd. 2. [SECONDARY VOCATIONAL EDUCATION AID.] For 96.30 secondary vocational education aid according to Minnesota 96.31 Statutes, section 124.573: 96.32$11,617,000$12,718,000 ..... 1998 96.33$11,596,000$12,844,000 ..... 1999 96.34 The 1998 appropriation includes $1,180,000 for 1997 and 96.35$10,437,000$11,538,000 for 1998. 96.36 The 1999 appropriation includes$1,159,000$1,282,000 for 97.1 1998 and$10,437,000$11,562,000 for 1999. 97.2 Sec. 15. Laws 1997 First Special Session, chapter 4, 97.3 article 3, section 25, subdivision 4, is amended to read: 97.4 Subd. 4. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 97.5 GRANTS.] For education and employment transitions program: 97.6 $4,750,000 ..... 1998 97.7 $4,750,000 ..... 1999 97.8 $500,000 each year is for development of MnCEPs, an 97.9 Internet-based education and employment information system. 97.10 These are one-time funds. 97.11 $1,225,000 in fiscal year 1998 and $1,250,000 in fiscal 97.12 year 1999 is for a rebate program for qualifying employers who 97.13 employ less than 250 employees, who offer youth internships to 97.14 educators. An employer may apply for a rebate of up to $500 for 97.15 each paid youth internship and each educator internship, and up 97.16 to $3,000 for each paid youth apprenticeship. The commissioner 97.17 shall determine the application and payment process. 97.18 $450,000 each year is for youth apprenticeship program 97.19 grants. 97.20 $225,000 each year is for youth entrepreneurship grants 97.21 under Minnesota Statutes, section 121.72. Of this amount, 97.22 $25,000 each year is for the high school student 97.23 entrepreneurship program in independent school district No. 175, 97.24 Westbrook. This appropriation shall be used for expenses, 97.25 including, but not limited to, salaries, travel, seminars, 97.26 equipment purchases, contractual expenses, and other expenses 97.27 related to the student-run business. 97.28 $125,000 each year is for youth employer grants under Laws 97.29 1995, First Special Session chapter 3, article 4, section 28. 97.30 $150,000 each year is for parent and community awareness 97.31 training. 97.32 $825,000 each year is for the development of career 97.33 assessment benchmarks, lifework portfolios, industry skill 97.34 standards, curriculum development, career academies, and career 97.35 programs for elementary, middle school, and at-risk learners. 97.36 $400,000 each year is for state level activities, including 98.1 the governor's workforce council. 98.2 $275,000 each year is for development of occupational 98.3 information. 98.4 $300,000 each year is for a grant to be made available to a 98.5 county government that has established school-to-work projects 98.6 with schools located in a city of the first class. These grants 98.7 must be used to expand the number of at-risk students 98.8 participating in these school-to-work projects. Priority must 98.9 be given to projects that demonstrate collaboration between 98.10 private employers, collective bargaining representatives, school 98.11 officials, and the county government and which prepare at-risk 98.12 students for long-term employment with private sector employers 98.13 paying a minimum of 150 percent of the federal poverty level for 98.14 a family of four and with the majority of their employees in 98.15 collective bargaining units. 98.16 $250,000 each year is for agricultural school-to-work 98.17 grants. 98.18 $25,000 is for a grant to the Minnesota Historical Society 98.19 for money canceled in fiscal year 1997. 98.20 Any balance remaining in the first year does not cancel but 98.21 is available in the second year. 98.22 Sec. 16. [APPROPRIATIONS.] 98.23 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 98.24 LEARNING.] The sums indicated in this section are appropriated 98.25 from the general fund to the department of children, families, 98.26 and learning for the fiscal years designated. 98.27 Subd. 2. [INTERVENTION DEMONSTRATION PROJECTS.] For 98.28 establishing five voluntary interagency intervention 98.29 demonstration projects under section 6, subdivision 5: 98.30 $ 250,000 ..... 1999 98.31 The commissioner shall allocate the grant awards according 98.32 to the implementation needs of the grant recipients. 98.33 Subd. 3. [PLANNING AND DESIGN GRANT.] For one-time grants 98.34 to plan and design a lifework learning facility under section 13: 98.35 $ 450,000 ..... 1999 98.36 Sec. 17. [REPEALER.] 99.1 Laws 1993, chapter 146, article 5, section 20, as amended 99.2 by Laws 1997, First Special Session chapter 4, article 3, 99.3 section 20, is repealed. 99.4 Sec. 18. [EFFECTIVE DATE.] 99.5 Sections 6, 8, 10, 13, 14, and 15 are effective the day 99.6 following final enactment. 99.7 ARTICLE 4 99.8 FACILITIES AND ORGANIZATION 99.9 Section 1. Minnesota Statutes 1996, section 122.23, 99.10 subdivision 6, is amended to read: 99.11 Subd. 6. The commissioner shall, upon receipt of a plat, 99.12 forthwith examine it and approve, modify or reject it. The 99.13 commissioner shall also approve or reject any proposal contained 99.14 in the resolution or petition regarding the disposition of the 99.15 bonded debt of the component districts. If the plat shows the 99.16 boundaries of proposed separate election districts and if the 99.17 commissioner modifies the plat, the commissioner shall also 99.18 modify the boundaries of the proposed separate election 99.19 districts. The commissioner shall conduct ahearingpublic 99.20 meeting at the nearest county seat in the area upon reasonable 99.21 notice to the affected districts and county boards if requested 99.22 within 20 days after submission of the plat.Such a hearingThe 99.23 public meeting may be requested by the board of any affected 99.24 district, a county board of commissioners, or the petition of 20 99.25 resident voters living within the area proposed for 99.26 consolidation. The commissioner shall endorse on the plat 99.27 action regarding any proposal for the disposition of the bonded 99.28 debt of component districts and the reasons for these actions 99.29 andwithinafter a minimum of 20 days, but no more than 60 days 99.30 of the date of the receipt of the plat, the commissioner shall 99.31 return it to the county auditor who submitted it. The 99.32 commissioner shall furnish a copy of that plat, and the 99.33 supporting statement and its endorsement to the auditor of each 99.34 county containing any land area of the proposed new district. 99.35 If land area of a particular county was included in the plat, as 99.36 submitted by the county auditor, and all of such land area is 100.1 excluded in the plat as modified and approved, the commissioner 100.2 shall also furnish a copy of the modified plat, supporting 100.3 statement, and any endorsement to the auditor of such county. 100.4 Sec. 2. Minnesota Statutes 1996, section 123.35, 100.5 subdivision 19a, is amended to read: 100.6 Subd. 19a. [LIMITATION ON PARTICIPATION AND FINANCIAL 100.7 SUPPORT.] (a) No school district shall be required by any type 100.8 of formal or informal agreement except an agreement to provide 100.9 building space according to paragraph (f), including a joint 100.10 powers agreement, or membership in any cooperative unit defined 100.11 in subdivision 19b, paragraph (d), to participate in or provide 100.12 financial support for the purposes of the agreement for a time 100.13 period in excess ofonefour fiscalyearyears, or the time 100.14 period set forth in this subdivision. Any agreement, part of an 100.15 agreement, or other type of requirement to the contrary is void. 100.16 (b) This subdivision shall not affect the continued 100.17 liability of a school district for its share of bonded 100.18 indebtedness or other debt incurred as a result of any agreement 100.19 before July 1, 1993. The school district is liable only until 100.20 the obligation or debt is discharged and only according to the 100.21 payment schedule in effect on July 1, 1993, except that the 100.22 payment schedule may be altered for the purpose of restructuring 100.23 debt or refunding bonds outstanding on July 1, 1993, if the 100.24 annual payments of the school district are not increased and if 100.25 the total obligation of the school district for its share of 100.26 outstanding bonds or other debt is not increased. 100.27 (c) To cease participating in or providing financial 100.28 support for any of the services or activities relating to the 100.29 agreement or to terminate participation in the agreement, the 100.30 school board shall adopt a resolution and notify other parties 100.31 to the agreement of its decision on or before February 1 of any 100.32 year. The cessation or withdrawal shall be effective June 30 of 100.33 the same year except that for a member of an education district 100.34 organized under sections 122.91 to 122.95 or an intermediate 100.35 district organized under chapter 136D, cessation or withdrawal 100.36 shall be effective June 30 of the following fiscal year. At the 101.1 option of the school board, cessation or withdrawal may be 101.2 effective June 30 of the following fiscal year for a district 101.3 participating in any type of agreement. 101.4 (d) Before issuing bonds or incurring other debt, the 101.5 governing body responsible for implementing the agreement shall 101.6 adopt a resolution proposing to issue bonds or incur other debt 101.7 and the proposed financial effect of the bonds or other debt 101.8 upon each participating district. The resolution shall be 101.9 adopted within a time sufficient to allow the school board to 101.10 adopt a resolution within the time permitted by this paragraph 101.11 and to comply with the statutory deadlines set forth in sections 101.12 122.895, 125.12, and 125.17. The governing body responsible for 101.13 implementing the agreement shall notify each participating 101.14 school board of the contents of the resolution. Within 120 days 101.15 of receiving the resolution of the governing body, the school 101.16 board of the participating district shall adopt a resolution 101.17 stating: 101.18 (1) its concurrence with issuing bonds or incurring other 101.19 debt; 101.20 (2) its intention to cease participating in or providing 101.21 financial support for the service or activity related to the 101.22 bonds or other debt; or 101.23 (3) its intention to terminate participation in the 101.24 agreement. 101.25 A school board adopting a resolution according to clause 101.26 (1) is liable for its share of bonded indebtedness or other debt 101.27 as proposed by the governing body implementing the agreement. A 101.28 school board adopting a resolution according to clause (2) is 101.29 not liable for the bonded indebtedness or other debt, as 101.30 proposed by the governing body, related to the services or 101.31 activities in which the district ceases participating or 101.32 providing financial support. A school board adopting a 101.33 resolution according to clause (3) is not liable for the bonded 101.34 indebtedness or other debt proposed by the governing body 101.35 implementing the agreement. 101.36 (e) After July 1, 1993, a district is liable according to 102.1 paragraph (d) for its share of bonded indebtedness or other debt 102.2 incurred by the governing body implementing the agreement to the 102.3 extent that the bonds or other debt are directly related to the 102.4 services or activities in which the district participates or for 102.5 which the district provides financial support. The district has 102.6 continued liability only until the obligation or debt is 102.7 discharged and only according to the payment schedule in effect 102.8 at the time the governing body implementing the agreement 102.9 provides notice to the school board, except that the payment 102.10 schedule may be altered for the purpose of refunding the 102.11 outstanding bonds or restructuring other debt if the annual 102.12 payments of the district are not increased and if the total 102.13 obligation of the district for the outstanding bonds or other 102.14 debt is not increased. 102.15 (f) A school district that is a member of a cooperative 102.16 unit as defined in subdivision 19b, paragraph (d), may obligate 102.17 itself to participate in and provide financial support for an 102.18 agreement with a cooperative unit to provide school building 102.19 space for a term not to exceed two years with an option on the 102.20 part of the district to renew for an additional two years. 102.21 (g) Notwithstanding any limitations imposed under this 102.22 subdivision, a school district may, according to section 123.36, 102.23 subdivision 10, enter into a lease of all or a portion of a 102.24 schoolhouse that is not needed for school purposes, including, 102.25 but not limited to, a lease with a term of more than one year. 102.26 Sec. 3. Minnesota Statutes 1996, section 124.273, is 102.27 amended by adding a subdivision to read: 102.28 Subd. 8. [ALLOCATIONS FROM COOPERATIVE UNITS.] For the 102.29 purposes of this section and section 124.321, pupils of limited 102.30 English proficiency enrolled in a cooperative or intermediate 102.31 school district unit shall be counted by the school district of 102.32 residence, and the cooperative unit shall allocate its approved 102.33 expenditures for limited English proficiency programs among 102.34 participating school districts. Limited English proficiency aid 102.35 for services provided by a cooperative or intermediate school 102.36 district shall be paid to the participating school districts. 103.1 Sec. 4. Minnesota Statutes 1996, section 124.755, 103.2 subdivision 1, is amended to read: 103.3 Subdivision 1. [DEFINITIONS.] For the purposes of this 103.4 section, the term "debt obligation" meanseither: 103.5 (1) a tax or aid anticipation certificate of indebtedness; 103.6 (2) a certificate of participation issued under section 103.7 124.91, subdivision 7; or 103.8 (3) a general obligation bond. 103.9 Sec. 5. Minnesota Statutes 1997 Supplement, section 103.10 124.91, subdivision 1, is amended to read: 103.11 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When a 103.12 district finds it economically advantageous to rent or lease a 103.13 building or land for any instructional purposes or for school 103.14 storage or furniture repair, and it determines that the 103.15 operating capital revenue authorized under section 124A.22, 103.16 subdivision 10, is insufficient for this purpose, it may apply 103.17 to the commissioner for permission to make an additional capital 103.18 expenditure levy for this purpose. An application for 103.19 permission to levy under this subdivision must contain financial 103.20 justification for the proposed levy, the terms and conditions of 103.21 the proposed lease, and a description of the space to be leased 103.22 and its proposed use. 103.23 (b) The criteria for approval of applications to levy under 103.24 this subdivision must include: the reasonableness of the price, 103.25 the appropriateness of the space to the proposed activity, the 103.26 feasibility of transporting pupils to the leased building or 103.27 land, conformity of the lease to the laws and rules of the state 103.28 of Minnesota, and the appropriateness of the proposed lease to 103.29 the space needs and the financial condition of the district. 103.30 The commissioner must not authorize a levy under this 103.31 subdivision in an amount greater than the cost to the district 103.32 of renting or leasing a building or land for approved purposes. 103.33 The proceeds of this levy must not be used for custodial or 103.34 other maintenance services. A district may not levy under this 103.35 subdivision for the purpose of leasing or renting a 103.36 district-owned building or site to itself. 104.1 (c) For agreements finalized after July 1, 1997, a district 104.2 may not levy under this subdivision for the purpose of leasing: 104.3 (1) a newly constructed building used primarily for regular 104.4 kindergarten, elementary, or secondary instruction; or (2) a 104.5 newly constructed building addition or additions used primarily 104.6 for regular kindergarten, elementary, or secondary instruction 104.7 that contains more than 20 percent of the square footage of the 104.8 previously existing building. 104.9 (d) The total levy under this subdivision for a district 104.10 for any year must not exceed $100 times the actual pupil units 104.11 for the fiscal year to which the levy is attributable. 104.12 (e) For agreements finalized after April 1, 1998, the term 104.13 "instructional purpose" as used in this subdivision excludes 104.14 expenditures on stadiums. 104.15 Sec. 6. Minnesota Statutes 1997 Supplement, section 104.16 124.91, subdivision 5, is amended to read: 104.17 Subd. 5. [INTERACTIVE TELEVISION.] (a) A school district 104.18 with its central administrative office located within economic 104.19 development region one, two, three, four, five, six, seven, 104.20 eight, nine, and ten may apply to the commissioner of children, 104.21 families, and learning for ITV revenue up to the greater of .5 104.22 percent of the adjusted net tax capacity of the district or 104.23 $25,000. Eligible interactive television expenditures include 104.24 the construction, maintenance, and lease costs of an interactive 104.25 television system for instructional purposes. An eligible 104.26 school district that has completed the construction of its 104.27 interactive television system may also purchase computer 104.28 hardware and software used primarily for instructional purposes 104.29 and access to the Internet provided that its total expenditures 104.30 for interactive television maintenance and lease costs and for 104.31 computer hardware and software under this subdivision do not 104.32 exceed its interactive television revenue for fiscal year 1998. 104.33 The approval by the commissioner of children, families, and 104.34 learning and the application procedures set forth in subdivision 104.35 1 shall apply to the revenue in this subdivision. In granting 104.36 the approval, the commissioner must consider whether the 105.1 district is maximizing efficiency through peak use and off-peak 105.2 use pricing structures. 105.3 (b) To obtain ITV revenue, a district may levy an amount 105.4 not to exceed the district's ITV revenue times the lesser of one 105.5 or the ratio of: 105.6 (1) the quotient derived by dividing the adjusted net tax 105.7 capacity of the district for the year before the year the levy 105.8 is certified by the actual pupil units in the district for the 105.9 year to which the levy is attributable; to 105.10 (2)100 percent of the equalizing factor as defined in105.11section 124A.02, subdivision 8, for the year to which the levy105.12is attributable$10,000. 105.13 (c) A district's ITV aid is the difference between its ITV 105.14 revenue and the ITV levy. 105.15 (d) The revenue in the first year after reorganization for 105.16 a district that has reorganized under section 122.22, 122.23, or 105.17 122.241 to 122.247 shall be the greater of: 105.18 (1) the revenue computed for the reorganized district under 105.19 paragraph (a), or 105.20 (2)(i) for two districts that reorganized, 75 percent of 105.21 the revenue computed as if the districts involved in the 105.22 reorganization were separate, or 105.23 (ii) for three or more districts that reorganized, 50 105.24 percent of the revenue computed as if the districts involved in 105.25 the reorganization were separate. 105.26 (e) The revenue in paragraph (d) is increased by the 105.27 difference between the initial revenue and ITV lease costs for 105.28 leases that had been entered into by the preexisting districts 105.29 on the effective date of the consolidation or combination and 105.30 with a term not exceeding ten years. This increased revenue is 105.31 only available for the remaining term of the lease. However, in 105.32 no case shall the revenue exceed the amount available had the 105.33 preexisting districts received revenue separately. 105.34 (f) Effective for fiscal year 2000, the revenue under this 105.35 section shall be 75 percent of the amount determined in 105.36 paragraph (a); for fiscal year 2001, 50 percent of the amount in 106.1 paragraph (a); and for fiscal year 2002, 25 percent of the 106.2 amount in paragraph (a). 106.3 (g) This section expires effective for revenue for fiscal 106.4 year 2003, or when leases in existence on the effective date of 106.5 Laws 1997, First Special Session chapter 4, expire. 106.6 Sec. 7. Minnesota Statutes 1996, section 124.95, 106.7 subdivision 6, is amended to read: 106.8 Subd. 6. [DEBT SERVICE EQUALIZATION AID PAYMENT SCHEDULE.] 106.9 Debt service equalization aid must be paid as follows: 30 106.10 percent before September 15, 30 percent before December 15,25106.11 30 percent before March 15, and a final payment of1510 percent 106.12 by July 15 of the subsequent fiscal year. 106.13 Sec. 8. Minnesota Statutes 1997 Supplement, section 106.14 124A.22, subdivision 11, is amended to read: 106.15 Subd. 11. [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 106.16 operating capital revenue may be used only for the following 106.17 purposes: 106.18 (1) to acquire land for school purposes; 106.19 (2) to acquire or construct buildings for school purposes,106.20up to $400,000; 106.21 (3) to rent or lease buildings, including the costs of 106.22 building repair or improvement that are part of a lease 106.23 agreement; 106.24 (4) to improve and repair school sites and buildings, and 106.25 equip or reequip school buildings with permanent attached 106.26 fixtures; 106.27 (5) for a surplus school building that is used 106.28 substantially for a public nonschool purpose; 106.29 (6) to eliminate barriers or increase access to school 106.30 buildings by individuals with a disability; 106.31 (7) to bring school buildings into compliance with the 106.32 uniform fire code adopted according to chapter 299F; 106.33 (8) to remove asbestos from school buildings, encapsulate 106.34 asbestos, or make asbestos-related repairs; 106.35 (9) to clean up and dispose of polychlorinated biphenyls 106.36 found in school buildings; 107.1 (10) to clean up, remove, dispose of, and make repairs 107.2 related to storing heating fuel or transportation fuels such as 107.3 alcohol, gasoline, fuel oil, and special fuel, as defined in 107.4 section 296.01; 107.5 (11) for energy audits for school buildings and to modify 107.6 buildings if the audit indicates the cost of the modification 107.7 can be recovered within ten years; 107.8 (12) to improve buildings that are leased according to 107.9 section 123.36, subdivision 10; 107.10 (13) to pay special assessments levied against school 107.11 property but not to pay assessments for service charges; 107.12 (14) to pay principal and interest on state loans for 107.13 energy conservation according to section 216C.37 or loans made 107.14 under the Northeast Minnesota Economic Protection Trust Fund Act 107.15 according to sections 298.292 to 298.298; 107.16 (15) to purchase or lease interactive telecommunications 107.17 equipment; 107.18 (16) by school board resolution, to transfer money into the 107.19 debt redemption fund to: (i) pay the amounts needed to meet, 107.20 when due, principal and interest payments on certain obligations 107.21 issued according to chapter 475; or (ii) pay principal and 107.22 interest on debt service loans or capital loans according to 107.23 section 124.44; 107.24 (17) to pay capital expenditure equipment-related 107.25 assessments of any entity formed under a cooperative agreement 107.26 between two or more districts; 107.27 (18) to purchase or lease computers and related materials, 107.28 copying machines, telecommunications equipment, and other 107.29 noninstructional equipment; 107.30 (19) to purchase or lease assistive technology or equipment 107.31 for instructional programs; 107.32 (20) to purchase textbooks; 107.33 (21) to purchase new and replacement library books; 107.34 (22) to purchase vehicles; 107.35 (23) to purchase or lease telecommunications equipment, 107.36 computers, and related equipment for integrated information 108.1 management systems for: 108.2 (i) managing and reporting learner outcome information for 108.3 all students under a results-oriented graduation rule; 108.4 (ii) managing student assessment, services, and achievement 108.5 information required for students with individual education 108.6 plans; and 108.7 (iii) other classroom information management needs; and 108.8 (24) to pay personnel costs directly related to the 108.9 acquisition, operation, and maintenance of telecommunications 108.10 systems, computers, related equipment, and network and 108.11 applications software. 108.12 Sec. 9. Laws 1997, First Special Session chapter 4, 108.13 article 4, section 35, subdivision 9, is amended to read: 108.14 Subd. 9. [FLOOD LOSSES.] For grants and loans to 108.15 independent school district Nos. 2854, Ada-Borup; 2176, 108.16 Warren-Alvarado-Oslo; 846, Breckenridge; 595, East Grand Forks; 108.17 and other districts affected by the 1997 floods for expenses 108.18 associated with the floods not covered by insurance or state or 108.19 federal disaster relief: 108.20 $4,700,000 ..... 1998 108.21 The commissioner shall award grants and loans to school 108.22 districts to cover expenses associated with the 1997 floods. 108.23 The grants or loans may be for capital losses or for 108.24 extraordinary operating expenses resulting from the floods. 108.25 School districts shall repay any loan or grant amounts to the 108.26 department if those amounts are otherwise funded from other 108.27 sources. The commissioner shall establish the terms and 108.28 conditions of any loans and may request any necessary 108.29 information from school districts before awarding a grant or 108.30 loan. This appropriation shall also be used to fund aid under 108.31 sections 33 and 34. 108.32 This appropriation is available until June 30, 1999. 108.33 Sec. 10. Laws 1997, First Special Session chapter 4, 108.34 article 9, section 12, subdivision 8, is amended to read: 108.35 Subd. 8. [INTERACTIVE TELEVISION (ITV) AID.] For 108.36 interactive television (ITV) aid under Minnesota Statutes, 109.1 section 124.91, subdivision 5: 109.2$4,030,000$4,569,000 ..... 1998 109.3$4,052,000$6,050,000 ..... 1999 109.4 The 1998 appropriation includes $384,000 for 1997 and 109.5$3,646,000$4,185,000 for 1998. 109.6 The 1999 appropriation includes$405,000$465,000 for 1998 109.7 and$3,647,000$5,585,000 for 1999. 109.8 Sec. 11. [ENHANCED PAIRING COOPERATION AND COMBINATION 109.9 AID.] 109.10 Subdivision 1. [DISTRICT ELIGIBILITY.] A group of 109.11 districts participating in an enhanced pairing agreement under 109.12 Laws 1995, First Special Session chapter 3, article 6, section 109.13 17, is eligible for a grant for cooperation and combination. 109.14 Subd. 2. [AID AMOUNT.] A district that is participating in 109.15 an enhanced pairing agreement is eligible for consolidation 109.16 transition revenue under Minnesota Statutes, section 124.2726 109.17 and is also eligible for additional state aid equal to $100 109.18 times the number of pupil units enrolled in an enhanced paired 109.19 district in the year prior to consolidation. 109.20 Subd. 3. [AID USES.] A district receiving aid under this 109.21 section must use the aid consistent with the purposes listed 109.22 under Minnesota Statutes, section 124.2725, subdivision 11, or 109.23 other purposes related to combination of the individual 109.24 districts as determined by the school board. If, after receipt 109.25 of state aid under this section the districts choose not to 109.26 combine and receive aid under Minnesota Statutes, section 109.27 124.2726, the commissioner of children, families, and learning 109.28 must recover aid equal to $25 times the number of pupil units in 109.29 the enhanced paired district. 109.30 Sec. 12. [LEASE LEVY FOR ADMINISTRATIVE SPACE; SOUTH ST. 109.31 PAUL AND MANKATO.] 109.32 Each year, special school district No. 6, South St. Paul, 109.33 and independent school district No. 77, Mankato, may levy the 109.34 amounts necessary to rent or lease administrative space so that 109.35 space previously used for administrative purposes may be used 109.36 for instructional purposes. 110.1 Sec. 13. [BONDING AUTHORIZATION.] 110.2 To provide funds for the acquisition or betterment of 110.3 school facilities, independent school district No. 625, St. 110.4 Paul, may by two-thirds majority vote of all the members of the 110.5 board of directors issue general obligation bonds in one or more 110.6 series in calendar years 1998 to 2002, both inclusive, as 110.7 provided in this section. The aggregate principal amount of any 110.8 bonds issued under this section for each calendar year must not 110.9 exceed $15,000,000. Issuance of the bonds is not subject to 110.10 Minnesota Statutes, section 475.58 or 475.59. The bonds must 110.11 otherwise be issued as provided in Minnesota Statutes, chapter 110.12 475. The authority to issue bonds under this section is in 110.13 addition to any bonding authority authorized by Minnesota 110.14 Statutes, chapter 124, or other law. The amount of bonding 110.15 authority authorized under this section must be disregarded in 110.16 calculating the bonding limit of Minnesota Statutes, chapter 110.17 124, or any other law other than Minnesota Statutes, section 110.18 475.53, subdivision 4. 110.19 Sec. 14. [TAX LEVY FOR DEBT SERVICE.] 110.20 To pay the principal of and interest on bonds issued under 110.21 section 13, independent school district No. 625, St. Paul, must 110.22 levy a tax annually in an amount sufficient under Minnesota 110.23 Statutes, section 475.61, subdivisions 1 and 3, to pay the 110.24 principal of and interest on the bonds. The tax authorized 110.25 under this section is in addition to the taxes authorized to be 110.26 levied under Minnesota Statutes, chapter 124A or 275, or other 110.27 law. 110.28 Sec. 15. [LEVY MODIFICATION.] 110.29 Independent school district No. 625, St. Paul, shall submit 110.30 a revised schedule for capital expenditure health and safety 110.31 projects to the commissioner of children, families, and 110.32 learning. The schedule must show a decrease in the district's 110.33 health and safety revenue projects commensurate with the 110.34 increase in its debt service levy attributable to the enactment 110.35 of sections 13 and 14 for taxes payable in 1999 and taxes 110.36 payable in 2000. 111.1 Sec. 16. [MOUNTAIN IRON-BUHL; BONDS.] 111.2 Subdivision 1. [AUTHORIZATION.] Independent school 111.3 district No. 712, Mountain Iron-Buhl, may issue bonds in an 111.4 aggregate principal amount not exceeding $5,300,000 in addition 111.5 to any bonds already issued or authorized, to provide funds to 111.6 design, construct, equip, furnish, remodel, rehabilitate, and 111.7 acquire land for school facilities and buildings, or abate, 111.8 remove, and dispose of asbestos, polychlorinated biphenyls, or 111.9 petroleum as defined in Minnesota Statutes, section 115C.02, and 111.10 make repairs related to the abatement, removal, or disposal of 111.11 these substances. Independent school district No. 712, Mountain 111.12 Iron-Buhl, may spend the proceeds of the bond sale for those 111.13 purposes and any architect, engineer, and legal fees incidental 111.14 to those purposes or the sale. The bond shall be authorized, 111.15 issued, sold, executed, and delivered in the manner provided by 111.16 Minnesota Statutes, chapter 475, including submission of the 111.17 proposition to the electors under Minnesota Statutes, section 111.18 475.58. After authorization by the electors under Minnesota 111.19 Statutes, section 475.58, a resolution of the board levying 111.20 taxes for the payment of bonds and interest on them and pledging 111.21 the proceeds of the levies for the payment of the bonds and 111.22 interest on them shall be deemed to be in compliance with the 111.23 provisions of Minnesota Statutes, chapter 475, with respect to 111.24 the levying of taxes for their payment. 111.25 Subd. 2. [APPROPRIATION.] There is annually appropriated 111.26 from the distribution of taconite production tax revenues to the 111.27 taconite environmental protection fund pursuant to Minnesota 111.28 Statutes, section 298.28, subdivision 11, and to the northeast 111.29 Minnesota economic protection trust pursuant to Minnesota 111.30 Statutes, section 298.28, subdivisions 9 and 11, in equal 111.31 shares, an amount sufficient to pay when due 80 percent of the 111.32 principal and interest on the bonds issued pursuant to 111.33 subdivision 1. If the annual distribution to the northeast 111.34 Minnesota economic protection trust is insufficient to pay its 111.35 share after fulfilling any obligations of the trust under 111.36 Minnesota Statutes, section 298.225 or 298.293, the deficiency 112.1 shall be appropriated from the taconite environmental protection 112.2 fund. 112.3 Subd. 3. [DISTRICT OBLIGATIONS.] Bonds issued under 112.4 authority of this section shall be the general obligations of 112.5 the school district, for which its full faith and credit and 112.6 unlimited taxing powers shall be pledged. If there are any 112.7 deficiencies in the amount received pursuant to subdivision 2, 112.8 they shall be made good by general levies, not subject to limit, 112.9 on all taxable properties in the district in accordance with 112.10 Minnesota Statutes, section 475.64. If any deficiency levies 112.11 are necessary, the school board may effect a temporary loan or 112.12 loans on certificates of indebtedness issued in anticipation of 112.13 them to meet payments of principal or interest on the bonds due 112.14 or about to become due. 112.15 Subd. 4. [DISTRICT LEVY.] The school board shall by 112.16 resolution levy on all property in the school district subject 112.17 to the general ad valorem school tax levies, and not subject to 112.18 taxation under Minnesota Statutes, sections 298.23 to 298.28, a 112.19 direct annual ad valorem tax for each year of the term of the 112.20 bonds in amounts that, if collected in full, will produce the 112.21 amounts needed to meet when due 20 percent of the principal and 112.22 interest payments on the bonds. A copy of the resolution shall 112.23 be filed, and the necessary taxes shall be extended, assessed, 112.24 collected, and remitted in accordance with Minnesota Statutes, 112.25 section 475.61. 112.26 Subd. 5. [LEVY LIMITATIONS.] Taxes levied pursuant to this 112.27 section shall be disregarded in the calculation of any other tax 112.28 levies or limits on tax levies provided by other law. 112.29 Subd. 6. [BONDING LIMITATIONS.] Bonds may be issued under 112.30 authority of this section notwithstanding any limitations upon 112.31 the indebtedness of a district, and their amounts shall not be 112.32 included in computing the indebtedness of a district for any 112.33 purpose, including the issuance of subsequent bonds and the 112.34 incurring of subsequent indebtedness. 112.35 Subd. 7. [TERMINATION OF APPROPRIATION.] The appropriation 112.36 authorized in subdivision 2 shall terminate upon payment or 113.1 maturity of the last of those bonds. 113.2 Subd. 8. [BOND ISSUE REQUIREMENT.] No bonds may be issued 113.3 under this section after March 1, 2000, unless they are issued 113.4 under a contract in effect on or before March 1, 2000. 113.5 Subd. 9. [LOCAL APPROVAL.] This section is effective for 113.6 independent school district No. 712, Mountain Iron-Buhl, the day 113.7 after its governing body complies with Minnesota Statutes, 113.8 section 645.021, subdivision 3. 113.9 Sec. 17. [BONDS PAID FROM TACONITE PRODUCTION TAX 113.10 REVENUES.] 113.11 Subdivision 1. [REFUNDING BONDS.] The appropriation of 113.12 funds from the distribution of taconite production tax revenues 113.13 to the taconite environmental protection tax fund and the 113.14 northeast Minnesota economic protection fund made by Laws 1988, 113.15 chapter 718, article 7, sections 62 and 63; Laws 1989, chapter 113.16 329, article 5, section 20; Laws 1990, chapter 604, article 8, 113.17 section 13; Laws 1992, chapter 499, article 5, section 29; and 113.18 Laws 1996, chapter 412, article 5, sections 18 to 20; and by 113.19 section 16, shall continue to apply to bonds issued under 113.20 Minnesota Statutes, chapter 475, to refund bonds originally 113.21 issued pursuant to those chapters. 113.22 Subd. 2. [LOCAL PAYMENTS.] School districts that are 113.23 required in Laws 1988, chapter 718, article 7, sections 62 and 113.24 63; Laws 1989, chapter 329, article 5, section 20; Laws 1990, 113.25 chapter 604, article 8, section 13; Laws 1992, chapter 499, 113.26 article 5, section 29; and sections 18 to 20, to impose levies 113.27 to pay debt service on the bonds issued under those provisions 113.28 to the extent the principal and interest on the bonds is not 113.29 paid by distributions from the taconite environmental protection 113.30 fund and the northeast Minnesota economic protection trust, may 113.31 pay their portion of the principal and interest from any funds 113.32 available to them. To the extent a school district uses funds 113.33 other than the proceeds of a property tax levy to pay its share 113.34 of the principal and interest on the bonds, the requirement to 113.35 impose a property tax to pay the local share does not apply to 113.36 the school district. 114.1 Sec. 18. [MODEL TECHNOLOGY PROGRAM.] 114.2 Subdivision 1. [PROGRAM.] A school district may develop a 114.3 model technology program that accommodates the needs of all 114.4 children. The program must provide for a systematic 114.5 implementation of the district's technology plan. The plan must 114.6 include a schedule of hardware and software purchases as well as 114.7 provide for the technical support and staff development 114.8 necessary to fully utilize the technology. 114.9 Subd. 2. [EQUIPMENT LEASING.] Notwithstanding any other 114.10 law to the contrary, a school district may enter into an 114.11 arrangement to lease hardware and software for a period of time 114.12 mutually agreed upon by the school board and the contractor. 114.13 Sec. 19. [APPROPRIATION.] 114.14 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 114.15 LEARNING.] The sums indicated in this section are appropriated 114.16 from the general fund to the department of children, families, 114.17 and learning for the fiscal years designated. 114.18 Subd. 2. [CROW RIVER AND MEEKER AND WRIGHT SPECIAL 114.19 EDUCATION COOPERATIVES.] For a grant to special education 114.20 cooperatives No. 52-937, Crow River, and No. 52-938, Meeker and 114.21 Wright, for disability access improvements to conform to the 114.22 Americans with Disabilities Act and for code compliance in 114.23 school building space for the students served by the 114.24 cooperatives: 114.25 $ 100,000 ..... 1999 114.26 Subd. 3. [CARLTON PLANNING GRANT.] For a grant to 114.27 independent school district No. 93, Carlton, to develop a plan 114.28 to coordinate district buildings and services: 114.29 $ 10,000 ..... 1999 114.30 The school district shall collaborate with the city of 114.31 Carlton and Carlton county in developing the plan. 114.32 Subd. 4. [CALEDONIA PLANNING GRANT.] (a) For a grant to 114.33 perform a management assistance study for independent school 114.34 district No. 299, Caledonia: 114.35 $ 40,000 ..... 1999 114.36 (b) The study shall include an analysis of facility needs, 115.1 enrollment trends, and instructional opportunities available to 115.2 pupils of independent school district No. 299, Caledonia. The 115.3 department may consult with neighboring school districts, as 115.4 appropriate. The department shall complete the management 115.5 assistance study by December 31, 1998. 115.6 (c) This appropriation is available until June 30, 1999. 115.7 Subd. 5. [COORDINATED FACILITIES PLANS.] For grants for 115.8 coordinated facilities plans: 115.9 $ 350,000 ..... 1999 115.10 Of this amount, $200,000 is for independent school district 115.11 No. 2135, Maple River, and $150,000 is for independent school 115.12 district No. 2184, LuVerne. The grants shall be used to examine 115.13 and coordinate the districts' building needs. Each district 115.14 must evaluate how the current use of its facilities is affecting 115.15 its educational services and examine cost efficiencies that may 115.16 result from a coordinated facilities plan. The grants may be 115.17 used for operating purposes, transportation purposes, or 115.18 facilities purposes that lead to greater program efficiencies. 115.19 Subd. 6. [ENHANCED PAIRING COMBINATION AID.] For a grant 115.20 to a group of school districts participating in the enhanced 115.21 pairing program that intend to combine into a single school 115.22 district: 115.23 $ 135,000 ..... 1999 115.24 Sec. 20. [EFFECTIVE DATE.] 115.25 (a) Sections 1, 2, 3, and 12 are effective July 1, 1998. 115.26 (b) Section 4 is effective retroactively for revenue for 115.27 fiscal year 1997. 115.28 (c) Section 6 is effective for revenue for fiscal year 1999. 115.29 (d) Section 7 is effective for revenue for fiscal year 1998. 115.30 (e) Sections 8, 9, and 10 are effective the day following 115.31 final enactment. 115.32 (f) Sections 13 and 14 are effective the day after the 115.33 governing body of independent school district No. 625, St. Paul, 115.34 complies with Minnesota Statutes, section 645.021, subdivision 3. 115.35 ARTICLE 5 115.36 POLICIES PROMOTING ACADEMIC EXCELLENCE 116.1 Section 1. Minnesota Statutes 1996, section 43A.17, 116.2 subdivision 9, is amended to read: 116.3 Subd. 9. [POLITICAL SUBDIVISION COMPENSATION LIMIT.] The 116.4 salary and the value of all other forms of compensation of a 116.5 person employed by a statutory or home rule charter city, 116.6 county, town,school district,metropolitan or regional agency, 116.7 or other political subdivision of this state excluding a school 116.8 district, or employed under section 422A.03, may not exceed 95 116.9 percent of the salary of the governor as set under section 116.10 15A.082, except as provided in this subdivision. Deferred 116.11 compensation and payroll allocations to purchase an individual 116.12 annuity contract for an employee are included in determining the 116.13 employee's salary. Other forms of compensation which shall be 116.14 included to determine an employee's total compensation are all 116.15 other direct and indirect items of compensation which are not 116.16 specifically excluded by this subdivision. Other forms of 116.17 compensation which shall not be included in a determination of 116.18 an employee's total compensation for the purposes of this 116.19 subdivision are: 116.20 (1) employee benefits that are also provided for the 116.21 majority of all other full-time employees of the political 116.22 subdivision, vacation and sick leave allowances, health and 116.23 dental insurance, disability insurance, term life insurance, and 116.24 pension benefits or like benefits the cost of which is borne by 116.25 the employee or which is not subject to tax as income under the 116.26 Internal Revenue Code of 1986; 116.27 (2) dues paid to organizations that are of a civic, 116.28 professional, educational, or governmental nature; and 116.29 (3) reimbursement for actual expenses incurred by the 116.30 employee which the governing body determines to be directly 116.31 related to the performance of job responsibilities, including 116.32 any relocation expenses paid during the initial year of 116.33 employment. 116.34 The value of other forms of compensation shall be the 116.35 annual cost to the political subdivision for the provision of 116.36 the compensation. The salary of a medical doctor or doctor of 117.1 osteopathy occupying a position that the governing body of the 117.2 political subdivision has determined requires an M.D. or D.O. 117.3 degree is excluded from the limitation in this subdivision. The 117.4 commissioner may increase the limitation in this subdivision for 117.5 a position that the commissioner has determined requires special 117.6 expertise necessitating a higher salary to attract or retain a 117.7 qualified person. The commissioner shall review each proposed 117.8 increase giving due consideration to salary rates paid to other 117.9 persons with similar responsibilities in the state and nation. 117.10 The commissioner may not increase the limitation until the 117.11 commissioner has presented the proposed increase to the 117.12 legislative coordinating commission and received the 117.13 commission's recommendation on it. The recommendation is 117.14 advisory only. If the commission does not give its 117.15 recommendation on a proposed increase within 30 days from its 117.16 receipt of the proposal, the commission is deemed to have 117.17 recommended approval. 117.18 Sec. 2. Minnesota Statutes 1996, section 43A.17, 117.19 subdivision 10, is amended to read: 117.20 Subd. 10. [LOCAL ELECTED OFFICIALS; CERTAIN COMPENSATION 117.21 PROHIBITED.] The compensation plan for an elected official of a 117.22 statutory or home rule charter city, county, or town, or school117.23districtmay not include a provision for vacation or sick 117.24 leave. The salary of an official covered by this subdivision 117.25 may not be diminished because of the official's absence from 117.26 official duties because of vacation or sickness. 117.27 Sec. 3. Minnesota Statutes 1996, section 120.064, 117.28 subdivision 11, is amended to read: 117.29 Subd. 11. [EMPLOYMENT AND OTHER OPERATING MATTERS.] (a) A 117.30 charter school shall employ or contract with necessary teachers, 117.31 as defined by section 125.03, subdivision 1, who hold valid 117.32 licenses to perform the particular service for which they are 117.33 employed in the school. The school may employ necessary 117.34 employees who are not required to hold teaching licenses to 117.35 perform duties other than teaching and may contract for other 117.36 services. The school may discharge teachers and nonlicensed 118.1 employees. 118.2 (b) A charter school may enter into a contract for teaching 118.3 or administrative services related to instruction only with: 118.4 (1) an individual teacher for the teaching services of that 118.5 teacher; 118.6 (2) an individual administrator for the administrative 118.7 services of that administrator; or 118.8 (3) a nonprofit entity not controlled by or under common 118.9 control with a related organization as defined in section 118.10 317A.011, subdivision 18, that is other than a nonprofit 118.11 corporation. 118.12 Nothing in this subdivision shall prevent a charter school 118.13 from contracting with other entities for administrative or 118.14 instructional services if those services do not constitute the 118.15 entire administration or operation of the charter school. 118.16 (c) The board of directors also shall decide matters 118.17 related to the operation of the school, including budgeting, 118.18 curriculum and operating procedures. 118.19 Sec. 4. Minnesota Statutes 1997 Supplement, section 118.20 120.101, subdivision 5, is amended to read: 118.21 Subd. 5. [AGES AND TERMS.] (a) Every child between seven 118.22 and 16 years of age shall receive instruction. Every child 118.23 under the age of seven who is enrolled in a half-day 118.24 kindergarten, or a full-day kindergarten program on alternate 118.25 days, or other kindergarten programs shall receive instruction. 118.26 Except as provided in subdivision 5a, a parent may withdraw a 118.27 child under the age of seven from enrollment at any time. 118.28 (b) A school district by annual board action may require 118.29 children subject to this subdivision to receive instruction in 118.30 summer school. A district that acts to require children to 118.31 receive instruction in summer school shall establish at the time 118.32 of its action the criteria for determining which children must 118.33 receive instruction. 118.34 Sec. 5. Minnesota Statutes 1996, section 120.101, 118.35 subdivision 6, is amended to read: 118.36 Subd. 6. [CURRICULUM.] (a) Instruction must be provided in 119.1 at least the following subject areas: 119.2 (1) basic communication skills including reading and 119.3 writing, literature, and fine arts; 119.4 (2) mathematics and science; 119.5 (3) social studies including history, geography, and 119.6 government; and 119.7 (4) health and physical education. 119.8 Instruction, textbooks, and materials must be in the 119.9 English language. Another language may be used pursuant to 119.10 sections 126.262 to 126.265. 119.11 (b) A public elementary, middle, or secondary school or 119.12 state agency shall not implement or carry out a program, 119.13 activity, or curriculum that has the purpose or demonstrable 119.14 effect of encouraging sexual activity by students. 119.15 Sec. 6. Minnesota Statutes 1996, section 120.73, 119.16 subdivision 1, is amended to read: 119.17 Subdivision 1. A school board is authorized to require 119.18 payment of fees in the following areas: 119.19(a)(1) in any program where the resultant product, in 119.20 excess of minimum requirements and at the pupil's option, 119.21 becomes the personal property of the pupil; 119.22(b)(2) admission fees or charges for extra curricular 119.23 activities, where attendance is optional and where the admission 119.24 fees or charges a student must pay to attend or participate in 119.25 an extracurricular activity is the same for all students, 119.26 regardless of whether the student is enrolled in a public or a 119.27 home school; 119.28(c)(3) a security deposit for the return of materials, 119.29 supplies, or equipment; 119.30(d)(4) personal physical education and athletic equipment 119.31 and apparel, although any pupil may personally provide it if it 119.32 meets reasonable requirements and standards relating to health 119.33 and safety established by the school board; 119.34(e)(5) items of personal use or products which a student 119.35 has an option to purchase such as student publications, class 119.36 rings, annuals, and graduation announcements; 120.1(f)(6) fees specifically permitted by any other statute, 120.2 including but not limited to section 171.04, subdivision 1, 120.3 clause (1); 120.4(g)(7) field trips considered supplementary to a district 120.5 educational program; 120.6(h)(8) any authorized voluntary student health and 120.7 accident benefit plan; 120.8(i)(9) for the use of musical instruments owned or rented 120.9 by the district, a reasonable rental fee not to exceed either 120.10 the rental cost to the district or the annual depreciation plus 120.11 the actual annual maintenance cost for each instrument; 120.12(j)(10) transportation of pupils to and from extra 120.13 curricular activities conducted at locations other than school, 120.14 where attendance is optional; 120.15(k)(11) transportation of pupils to and from school for 120.16 which aid for fiscal year 1996 is not authorized under Minnesota 120.17 Statutes 1994, section 124.223, subdivision 1, and for which 120.18 levy for fiscal year 1996 is not authorized under Minnesota 120.19 Statutes 1994, section 124.226, subdivision 5, if a district 120.20 charging fees for transportation of pupils establishes 120.21 guidelines for that transportation to ensure that no pupil is 120.22 denied transportation solely because of inability to pay; 120.23(l)(12) motorcycle classroom education courses conducted 120.24 outside of regular school hours; provided the charge shall not 120.25 exceed the actual cost of these courses to the school district; 120.26(m)(13) transportation to and from post-secondary 120.27 institutions for pupils enrolled under the post-secondary 120.28 enrollment options program under section 123.39, subdivision 120.29 16. Fees collected for this service must be reasonable and 120.30 shall be used to reduce the cost of operating the route. 120.31 Families who qualify for mileage reimbursement under section 120.32 123.3514, subdivision 8, may use their state mileage 120.33 reimbursement to pay this fee. If no fee is charged, districts 120.34 shall allocate costs based on the number of pupils riding the 120.35 route. 120.36 Sec. 7. Minnesota Statutes 1997 Supplement, section 121.1 121.11, subdivision 7c, is amended to read: 121.2 Subd. 7c. [RESULTS-ORIENTED GRADUATION RULE.] (a) The 121.3 legislature is committed to establishing a rigorous, 121.4 results-oriented graduation rule for Minnesota's public school 121.5 students. To that end, the state board shall use its rulemaking 121.6 authority under subdivision 7b to adopt a statewide, 121.7 results-oriented graduation rule to be implemented starting with 121.8 students beginning ninth grade in the 1996-1997 school year. 121.9 The board shall not prescribe in rule or otherwise the delivery 121.10 system or form of instruction that local sites must use to meet 121.11 the requirements contained in this rule. 121.12 (b) To successfully accomplish paragraph (a), the state 121.13 board shall set in rule high academic standards for all 121.14 students. The standards must contain the foundational skills in 121.15 the three core curricular areas of reading, writing, and 121.16 mathematics while meeting requirements for high school 121.17 graduation. The standards must also provide an opportunity for 121.18 students to excel by meeting higher academic standards through a 121.19 profile of learning that uses curricular requirements to allow 121.20 students to expand their knowledge and skills beyond the 121.21 foundational skills. All state board actions regarding the rule 121.22 must be premised on the following: 121.23 (1) the rule is intended to raise academic expectations for 121.24 students, teachers, and schools; 121.25 (2) any state action regarding the rule must evidence 121.26 consideration of school district autonomy; and 121.27 (3) the department of children, families, and learning, 121.28 with the assistance of school districts, must make available 121.29 information about all state initiatives related to the rule to 121.30 students and parents, teachers, and the general public in a 121.31 timely format that is appropriate, comprehensive, and readily 121.32 understandable. 121.33 (c) For purposes of adopting the rule, the state board, in 121.34 consultation with the department, recognized psychometric 121.35 experts in assessment, and other interested and knowledgeable 121.36 educators, using the most current version of professional 122.1 standards for educational testing, shall evaluate the 122.2 alternative approaches to assessment. 122.3 (d) The content of the graduation rule must differentiate 122.4 between minimum competencies reflected in the basic requirements 122.5 assessment and rigorous profile of learning standards. When 122.6 fully implemented, the requirements for high school graduation 122.7 in Minnesota must include both basic requirements and the 122.8 required profile of learning. The profile of learning must 122.9 measure student performance using performance-based assessments 122.10 compiled over time that integrate higher academic standards, 122.11 higher order thinking skills, and application of knowledge from 122.12 a variety of content areas. The profile of learning shall 122.13 include a broad range of academic experience and accomplishment 122.14 necessary to achieve the goal of preparing students to function 122.15 effectively as purposeful thinkers, effective communicators, 122.16 self-directed learners, productive group participants, and 122.17 responsible citizens. The commissioner, with the assistance of 122.18 the office of educational accountability, the clearinghouse of 122.19 best educational practices, and the technical quality review 122.20 advisory panel under section 121.1115, shall develop and 122.21 disseminate to school districts a uniform form and method for 122.22 districts to use in measuring and reporting student performance 122.23 on the profile of learning at the school, district, and state 122.24 levels beginning with the 1999-2000 school year and thereafter. 122.25 (e) The federal Goals 2000 provision shall not be required 122.26 by the state or local school district to be implemented in the 122.27 graduation rule or high standard content areas or other 122.28 graduation requirements. 122.29(e)(f) The state board shall periodically review and 122.30 report on the assessment process and student achievement with 122.31 the expectation of raising the standards and expanding high 122.32 school graduation requirements. 122.33(f)(g) The state board shall report in writing to the 122.34 legislature annually by January 15 on its progress in developing 122.35 and implementing the graduation requirements according to the 122.36 requirements of this subdivision and section 123.97 until such 123.1 time as all the graduation requirements are implemented. 123.2 Sec. 8. Minnesota Statutes 1997 Supplement, section 123.3 121.1113, subdivision 1, is amended to read: 123.4 Subdivision 1. [STATEWIDE TESTING.] (a) The commissioner, 123.5 with advice from experts with appropriate technical 123.6 qualifications and experience and stakeholders, shall include in 123.7 the comprehensive assessment system, for each grade level to be 123.8 tested, a single statewide norm-referenced or 123.9 criterion-referenced test, or a combination of a norm-referenced 123.10 and a criterion-referenced test, which shall be highly 123.11 correlated with the state's graduation standards and 123.12 administered annually to all students in the third, fifth, and 123.13 eighth grades. The commissioner shall establish one or more 123.14 months during which schools shall administer the tests to 123.15 students each school year. The Minnesota basic skills tests in 123.16 reading and mathematics shall fulfill students' eighth grade 123.17 testing requirements. School districts shall continue to 123.18 administer official state basic skills tests in reading and 123.19 mathematics between one and three times per year to a student 123.20 until the student receives a passing score on those state tests, 123.21 thereby fulfilling the student's eighth grade testing 123.22 requirements. Other testing options do not fulfill the 123.23 student's eighth grade testing requirements for a passing state 123.24 notation. 123.25 (b) In addition, at the secondary level, districts shall 123.26 assess student performancein all required learning areas and123.27selected required standards within each area of the profiles of123.28learningusing a nationally norm-referenced standardized 123.29 achievement examination. The testing instruments and testing 123.30 process shall be determined by the commissioner. The results 123.31 shall be aggregated at the site and district level. The testing 123.32 shall be administered beginning in the 1999-2000 school year and 123.33 thereafter. 123.34 (c) The comprehensive assessment system shall include an 123.35 evaluation of school site and school district performance levels 123.36 during the 1997-1998 school year and thereafter using an 124.1 established performance baseline developed from students' test 124.2 scores under this section that records, at a minimum, students' 124.3 unweighted mean test scores in each tested subject, a second 124.4 performance baseline that reports, at a minimum, the same 124.5 unweighted mean test scores of only those students enrolled in 124.6 the school by January 1 of the previous school year, and a third 124.7 performance baseline that reports the same unweighted test 124.8 scores of all students except those students receiving limited 124.9 English proficiency instruction. The evaluation also shall 124.10 record separately, in proximity to the performance baselines, 124.11 the percentages of students who are eligible to receive a free 124.12 or reduced price school meal, demonstrate limited English 124.13 proficiency, or are eligible to receive special education 124.14 services. 124.15 (d) In addition to the testing and reporting requirements 124.16 under paragraphs (a), (b), and (c), the commissioner, in 124.17 consultation with the state board of education, shall include 124.18 the following components in the statewide educational 124.19 accountability and public reporting system: 124.20 (1) uniform statewide testing of all third, fifth, eighth, 124.21 and post-eighth grade students with exemptions, only with parent 124.22 or guardian approval, from the testing requirement only for 124.23 those very few students for whom the student's individual 124.24 education plan team under section 120.17, subdivision 2, 124.25 determines that the student is incapable of taking a statewide 124.26 test, or a limited English proficiency student under section 124.27 126.262, subdivision 2, if the student has been in the United 124.28 States for fewer than 12 months and for whom special language 124.29 barriers exist, such as the student's native language does not 124.30 have a written form or the district does not have access to 124.31 appropriate interpreter services for the student's native 124.32 language; 124.33 (2) educational indicators that can be aggregated and 124.34 compared across school districts and across time on a statewide 124.35 basis; 124.36 (3) students' scores on the American College Test; 125.1 (4) participation in the National Assessment of Educational 125.2 Progress so that the state can benchmark its performance against 125.3 the nation and other states, and, where possible, against other 125.4 countries, and contribute to the national effort to monitor 125.5 achievement; and 125.6 (5) basic skills and advanced competencies connecting 125.7 teaching and learning to high academic standards, assessment, 125.8 and transitions to citizenship and employment. 125.9 (e) Districts must report exemptions under paragraph (d), 125.10 clause (1), to the commissioner consistent with a format 125.11 provided by the commissioner. 125.12 Sec. 9. [121.1114] [GRADUATION RULE.] 125.13 Subdivision 1. [IMPLEMENTATION OF THE PROFILE OF 125.14 LEARNING.] (a) A school district shall implement the profile of 125.15 learning of the graduation rule under paragraph (b), (c), or (d). 125.16 A district may implement the profile of learning under 125.17 paragraph (c) or (d) only after the school board of the district 125.18 formally approves the implementation schedule under paragraph 125.19 (c) or adopts a local plan for implementation under paragraph 125.20 (d) and, notwithstanding any law to the contrary, the 125.21 commissioner, at the commissioner's discretion, authorizes the 125.22 district to implement the profile of learning under paragraph 125.23 (c) or (d). 125.24 (b) A school district shall implement the profile of 125.25 learning for the 1998-1999 school year and later. 125.26 (c) A school district shall implement the profile of 125.27 learning as follows: 125.28 (1) for the 1998-1999 school year and later, the district 125.29 shall implement all required standards in learning areas at the 125.30 preparatory level and implement at the high school level a 125.31 minimum of four learning areas under the profile of learning 125.32 with two or more from the areas of read, listen, and view; 125.33 mathematical applications; scientific applications; and people 125.34 and cultures; and the remainder, if four have not been selected 125.35 from the above, from the areas of write and speak; literature 125.36 and the arts; inquiry; decision making; resource management; and 126.1 world language; 126.2 (2) for the 1999-2000 school year and later, the district 126.3 shall implement at the high school level three learning areas in 126.4 addition to those implemented under clause (1). The district 126.5 shall complete the four learning areas of read, listen, and 126.6 view; mathematical applications; scientific applications; and 126.7 people and cultures if the four areas were not completed in 126.8 clause (1); and the remainder from the areas of write and speak; 126.9 literature and the arts; inquiry; decision making; resource 126.10 management; and world language; and 126.11 (3) for the 2000-2001 school year and later, the district 126.12 shall implement at the high school level the three learning 126.13 areas in the profile of learning that were not implemented under 126.14 clauses (1) and (2). 126.15 (d) A district shall develop a local plan to implement the 126.16 profile of learning and have all ten learning areas fully 126.17 implemented by the 2001-2002 school year. 126.18 (e) A district shall notify the commissioner by July 1, 126.19 1998, as to whether the district will implement the profile of 126.20 learning under paragraph (b), (c), or (d). 126.21 (f) An advisory committee of 15 members is established to 126.22 advise the governor, legislature, state board of education, and 126.23 commissioner on the implementation of the graduation rule under 126.24 this section. The majority and minority leaders of the senate 126.25 and the house of representatives shall each appoint one member. 126.26 The commissioner shall appoint an additional 11 members with 126.27 three representatives from education organizations and eight 126.28 representatives from business, higher education, parents, and 126.29 organizations representing communities of color. 126.30 The committee shall review the implementation of the basic 126.31 requirements and the profile of learning standards and make 126.32 recommendations in areas such as clarification; relevance; 126.33 content; organization; rigor; the number of required learning 126.34 areas and standards; recordkeeping; improved ways to inform 126.35 parents regarding the standards; ways to improve assistance to 126.36 schools and sites; ways to accommodate students who successfully 127.1 complete alternate courses or programs of study such as advanced 127.2 placement, international baccalaureate, post-secondary courses, 127.3 foreign study, and internships; and other implementation related 127.4 issues. 127.5 The commissioner shall convene the committee periodically 127.6 and the committee shall report to the governor, legislature, 127.7 state board of education, and commissioner annually by February 127.8 15 on its findings. The commissioner shall provide technical 127.9 and other assistance to the advisory committee. The committee 127.10 expires on February 16, 2002. 127.11 (g) The commissioner shall provide information to 127.12 districts, students, parents or guardians of students, 127.13 post-secondary institutions, and the public about the status and 127.14 implementation of the graduation standards. 127.15 Subd. 2. [DISTRICT PERFORMANCE PACKAGES.] School districts 127.16 are not required to use a state model performance package. The 127.17 district may use a performance package adopted by the district 127.18 that equals or exceeds the difficulty of the state model 127.19 performance package. 127.20 Sec. 10. Minnesota Statutes 1996, section 121.1115, is 127.21 amended by adding a subdivision to read: 127.22 Subd. 1b. [EDUCATIONAL ACCOUNTABILITY.] (a) In realizing 127.23 its purpose under Laws 1997, First Special Session chapter 4, 127.24 article 5, section 28, subdivision 2, the office of educational 127.25 accountability shall advise the education committees of the 127.26 legislature at least on a biennial basis, on the degree to which 127.27 the statewide educational accountability and reporting system 127.28 includes a comprehensive, performance-based assessment framework 127.29 that makes schools accountable for students achieving the goals 127.30 described in the state's high school graduation rule. The 127.31 office shall consider whether the statewide system of 127.32 educational accountability provides useful comparative and 127.33 contextual data on students, schools, districts, and the state, 127.34 and whether it includes: 127.35 (1) public reporting on the condition of the educational 127.36 system using multiple indicators that are essential to 128.1 describing and understanding the needs of children and youth and 128.2 apply to all students; 128.3 (2) a core set of educational indicators that are 128.4 comparable and capable of being aggregated across school 128.5 districts and across time on a statewide basis; 128.6 (3) public reporting on the condition of the educational 128.7 system that supports the direction of state educational policy; 128.8 (4) a public reporting system that is flexible and permits 128.9 the adding, modifying, and deleting of measures as policies and 128.10 circumstances change; 128.11 (5) a public reporting system that aligns conceptually and 128.12 in practice with the information needs of local school districts 128.13 and contains measures that local communities and schools can 128.14 influence; 128.15 (6) reports of performance information that ensure all 128.16 students' privacy and confidentiality; 128.17 (7) student performance indicators that contain clearly 128.18 articulated standards of student performance and have broad 128.19 community support; 128.20 (8) reports of educational performance that reflect current 128.21 results and trends over time; 128.22 (9) a reporting system that reduces and consolidates the 128.23 existing reporting burden on school districts by better using 128.24 existing information and building on current data reporting 128.25 systems at the state and district levels; and 128.26 (10) a reporting system that is managed in a nonpartisan 128.27 and highly competent manner to ensure the public's use and 128.28 confidence and minimizes the reporting burden on school 128.29 districts. To the extent the statewide educational 128.30 accountability and reporting system does not include a 128.31 comprehensive, performance-based assessment framework that makes 128.32 schools accountable for students achieving the goals described 128.33 in the state's high school graduation rule, or does not provide 128.34 useful comparative and contextual data on students, schools, 128.35 districts, and the state, the office shall recommend to the 128.36 legislature ways to improve the accountability and reporting 129.1 system. 129.2 (b) When the office reviews the statewide educational 129.3 accountability and reporting system, it shall also: 129.4 (1) consider the objectivity and neutrality of the state's 129.5 educational accountability system; 129.6 (2) develop strong relationships with other policy actors 129.7 and with leaders outside government; and 129.8 (3) consider the impact of a high stakes testing program on 129.9 school curriculum and student learning. 129.10 (c) A technical quality review advisory panel is 129.11 established to assist the office of educational accountability 129.12 in clearly articulating the criteria for judging the statewide 129.13 education accountability and reporting system. Among other 129.14 things, the criteria shall measure the extent to which the 129.15 system: 129.16 (1) creates intended and unintended consequences; 129.17 (2) is fairly administered; 129.18 (3) evaluates the desired and appropriate complex 129.19 intellectual processes; 129.20 (4) is relevant and meaningful to teachers, students, and 129.21 parents; 129.22 (5) evaluates skills that are transferable; 129.23 (6) is cost-efficient; and 129.24 (7) is comprehensive in its coverage of content. 129.25 Panel members shall include psychometricians and other 129.26 experts in the field of student assessment, an elementary school 129.27 teacher employed in a state public school, a secondary school 129.28 teacher employed in a state public school, a curriculum and 129.29 instruction director employed in a state public school, and a 129.30 local public school administrator. Panel members are appointed 129.31 by and serve at the pleasure of the speaker of the house, the 129.32 house minority leader, the majority leader of the senate, and 129.33 the senate minority leader. Panel members shall receive 129.34 compensation according to section 15.059, subdivision 3. 129.35 (d) The office of educational accountability shall report 129.36 at least biennially by November 1 preceding the first year of 130.1 the state's biennial legislative session to the education 130.2 committees of the legislature on the status of the statewide 130.3 system of educational accountability. 130.4 Sec. 11. Minnesota Statutes 1996, section 121.1115, is 130.5 amended by adding a subdivision to read: 130.6 Subd. 1c. [CLEARINGHOUSE OF BEST EDUCATIONAL PRACTICES; 130.7 DIRECTOR.] (a) To provide practical, effective assistance to 130.8 schools with academically at-risk students, a clearinghouse of 130.9 best educational practices is established to make available to 130.10 interested school districts human and informational resources 130.11 for improving student performance. The clearinghouse shall: 130.12 (1) conduct research and collect information on the best 130.13 educational practices affecting a school's management, 130.14 operation, financing, personnel, and instruction; 130.15 (2) train quality intervention teams composed of highly 130.16 qualified educators to assist a school's staff in working to 130.17 improve the educational performance of academically at-risk 130.18 students by addressing a school's management, operation, 130.19 financing, personnel, and instruction practices; 130.20 (3) develop and make available to interested school 130.21 districts a model for an independent educational audit that 130.22 evaluates a school's performance strengths and weaknesses and 130.23 makes specific recommendations for reinforcing performance 130.24 strengths and improving performance weaknesses cited in the 130.25 audit; 130.26 (4) using the comprehensive, performance-based assessment 130.27 framework under subdivision 1b, paragraph (a), and with the 130.28 assistance of the office of educational accountability, develop 130.29 student and school performance indicators schools may use to 130.30 reliably measure school improvement over time; and 130.31 (5) provide staff development opportunities to assist 130.32 teachers and other educators in integrating educational reform 130.33 measures into a school's best practices. 130.34 The clearinghouse shall assist school districts under this 130.35 subdivision at district request. 130.36 (b) The office of educational accountability, in 131.1 consultation with organizations representing the state's 131.2 kindergarten through grade 12 public school teachers, shall 131.3 appoint a licensed kindergarten through grade 12 teacher as 131.4 director of the clearinghouse. The director shall receive a 131.5 one-year sabbatical leave to serve as clearinghouse director and 131.6 may receive additional one-year sabbatical leaves for this 131.7 purpose. 131.8 Sec. 12. [124.305] [LOW-INCOME CONCENTRATION LEVY 131.9 PROGRAM.] 131.10 Subdivision 1. [ELIGIBILITY.] A school building qualifies 131.11 for the low-income concentration program if: 131.12 (1) at least 20 percent of the enrolled students are 131.13 eligible to receive free or reduced price lunch based on the 131.14 enrollment counts for the previous year; 131.15 (2) at least 20 percent of the enrolled students are 131.16 students of color based on the enrollment counts for the 131.17 previous year; and 131.18 (3) the school building is located in a school district 131.19 that is not wholly located within the boundaries of a city of 131.20 the first class. 131.21 Subd. 2. [LEVY.] For taxes payable in 1999 only, a school 131.22 district may levy an amount equal to: 131.23 (1) $286; times 131.24 (2) the number of children eligible to receive free or 131.25 reduced price lunch for the previous year enrolled at each 131.26 qualifying site within the district. 131.27 Subd. 3. [REVENUE USES.] Low-income concentration revenue 131.28 must be used for the purposes listed in section 124A.28, 131.29 subdivision 1a. 131.30 Subd. 4. [LEVY RECOGNITION.] A school district shall 131.31 recognize the entire amount of the levy certified under this 131.32 section in fiscal year 1999. 131.33 Subd. 5. [VOTER APPROVAL.] A school district may levy a 131.34 tax under this section only after authorization by the 131.35 electors. The amounts approved by the electors are not subject 131.36 to the revenue limitations under section 124A.03. The election 132.1 may be held on a day other than the first Tuesday after the 132.2 first Monday in November. 132.3 Sec. 13. Minnesota Statutes 1996, section 125.191, is 132.4 amended to read: 132.5 125.191 [LICENSE AND DEGREE EXEMPTION FOR HEAD COACH.] 132.6 Notwithstanding section 125.03, subdivision 1, a school 132.7 district may employ as a head varsity coach of an 132.8 interscholastic sport at its secondary school a person who does 132.9 not have a license as head varsity coach of interscholastic 132.10 sports and who does not have a bachelor's degree if: 132.11 (1) in the judgment of the school board, the person has the 132.12 knowledge and experience necessary to coach the sport; 132.13 (2)the position has been posted as a vacancy within the132.14present teaching staff for a period of 30 days and no licensed132.15coaches have applied for the position;132.16(3) the personcan verify completion of six quarter 132.17 credits, or the equivalent, or 60 clock hours of instruction in 132.18 first aid and the care and prevention of athletic injuries; and 132.19(4) the person(3) can verify completion of a coaching 132.20 methods or theory course. 132.21 Notwithstanding section 125.121, a person employed as a 132.22 head varsity coach under this section has an annual contract as 132.23 a coach that the school board may or may not renew as the board 132.24 sees fit, after annually posting the position as required in132.25clause (2) and no licensed coach has applied for the position. 132.26 Sec. 14. Minnesota Statutes 1996, section 126.12, 132.27 subdivision 1, is amended to read: 132.28 Subdivision 1. Except for learning programs during summer, 132.29 flexible learning year programs authorized under sections 120.59 132.30 to 120.67, and learning year programs under section 121.585, a 132.31 school district shall not commence an elementary or secondary 132.32 school year prior toLabor DaySeptember 1. Days which are 132.33 devoted to teachers' workshops may be held beforeLabor Day132.34 September 1. Districts that enter into cooperative agreements 132.35 are encouraged to adopt similar school calendars. 132.36 Sec. 15. [126.238] [ACCELERATED INSTRUCTION FOR HIGH 133.1 SCORING STUDENTS.] 133.2 Every district shall provide accelerated instruction to all 133.3 enrolled elementary and secondary students who score three 133.4 standard deviations above the norm on a standardized achievement 133.5 test. Each high scoring student shall have a written 133.6 accelerated learning plan developed by an accelerated learning 133.7 plan team that includes the student's teachers, parents, and 133.8 school counselor and may include other qualified educators and 133.9 the student if the student is a secondary school student. The 133.10 plan shall state the educational outcomes the student will work 133.11 to achieve, indicating the curricular content of the educational 133.12 outcomes and the instructional strategies to be used in 133.13 providing curricula. Cost to the school district may be among 133.14 the factors the team considers in choosing how to provide the 133.15 accelerated instruction contained in the student's plan. The 133.16 school district shall make the final decision about the contents 133.17 of a plan. Plan contents shall be consistent with and enhance 133.18 the requirements of the state's results-oriented high school 133.19 graduation rule. The accelerated learning plan of each 133.20 secondary student shall provide for a transition from secondary 133.21 school to post-secondary education, employment, or community 133.22 service. The district shall evaluate a student's success in 133.23 achieving the educational outcomes stated in the accelerated 133.24 learning plan and the contents of the plan at least once per 133.25 school year. School districts with a small number of high 133.26 scoring students may cooperate with other districts in providing 133.27 the students with sufficient opportunities for accelerated 133.28 instruction as stated in the student's accelerated learning plan. 133.29 Sec. 16. Minnesota Statutes 1996, section 260.015, 133.30 subdivision 19, is amended to read: 133.31 Subd. 19. [HABITUAL TRUANT.] "Habitual truant" means a 133.32 child under the age of 16 years who is absent from attendance at 133.33 school without lawful excuse for seven school days if the child 133.34 is in elementary school or for one or more class periods on 133.35 seven school days if the child is in middle school, junior high 133.36 school, or high school, or a child who is 16 or 17 years of age 134.1 who is absent from attendance at school without lawful excuse 134.2 for one or more class periods on seven school days and who has 134.3 not lawfully withdrawn from school under section 120.101, 134.4 subdivision 5d. 134.5 Sec. 17. Minnesota Statutes 1996, section 260.132, 134.6 subdivision 4, is amended to read: 134.7 Subd. 4. [TRUANT.] When a peace officer or probation 134.8 officer has probable cause to believe that a child iscurrently134.9under age 16subject to compulsory instruction requirements 134.10 under section 120.101, subdivisions 5 and 5d, and is absent from 134.11 school without lawful excuse, the officer may transport the 134.12 child to the child's home and deliver the child to the custody 134.13 of the child's parent or guardian, transport the child to the 134.14 child's school of enrollment and deliver the child to the 134.15 custody of a school superintendent or teacher or transport the 134.16 child to a truancy service center under section 260A.04, 134.17 subdivision 3. 134.18 Sec. 18. Laws 1997, First Special Session chapter 4, 134.19 article 5, section 24, subdivision 4, is amended to read: 134.20 Subd. 4. [GRANT AWARDS.] A school district or any group of 134.21 districts may receive a grant in the amount of $25 per pupil per 134.22 year.The grant recipient must match one local dollar for every134.23state dollar received. The local match may include in kind134.24contributions.In awarding grants, the commissioner shall 134.25 consider which students will benefit most from these programs. 134.26 No grant recipient shall use the grant award to supplant 134.27 existing funding for gifted and talented programs. 134.28 Sec. 19. Laws 1997, First Special Session chapter 4, 134.29 article 5, section 28, subdivision 4, is amended to read: 134.30 Subd. 4. [ADVANCED PLACEMENT AND INTERNATIONAL 134.31 BACCALAUREATE PROGRAMS.] For the state advanced placement and 134.32 international baccalaureate programs: 134.33 $1,875,000 ..... 1998 134.34 $1,875,000 ..... 1999 134.35 Notwithstanding Minnesota Statutes, section 126.239, 134.36 subdivisions 1 and 2, $200,000 each year is for teachers to 135.1 attend subject matter summer training programs and follow-up 135.2 support workshops approved by the advanced placement or 135.3 international baccalaureate programs. The amount of the subsidy 135.4 for each teacher attending an advanced placement or 135.5 international baccalaureate summer training program or workshop 135.6 shall be the same. The commissioner shall determine the payment 135.7 process and the amount of the subsidy. 135.8 Notwithstanding Minnesota Statutes, section 126.239, 135.9 subdivision 3, in each year to the extent of available 135.10 appropriations, the commissioner shall pay all examination fees 135.11 for all students sitting for an advanced placement examination, 135.12 international baccalaureate examination, or both. If this 135.13 amount is not adequate, the commissioner may pay less than the 135.14 full examination fee. 135.15 $300,000 each year is for student scholarships. A student 135.16 scholarship shall be awarded to a student scoring three or 135.17 better on one or more advanced placement examinations or a four 135.18 or better on one or more international baccalaureate 135.19 examinations. The amount of each scholarship shall range from 135.20$150$75 to $500 based on the student's score on the exams. The 135.21 scholarships shall be awarded only to students who are enrolled 135.22 in a Minnesota public or private college or university. The 135.23 total amount of each scholarship shall be paid directly to the 135.24 student's designated college or university and must be used by 135.25 the student only for tuition, required fees, and books in 135.26 nonsectarian courses or programs. The higher education services 135.27 office, in consultation with the commissioner, shall determine 135.28 the payment process, the amount of the scholarships, and 135.29 provisions for unused scholarships. 135.30 In order to be eligible to receive advanced placement or 135.31 international baccalaureate scholarships on behalf of the 135.32 qualifying students, the college or university must have an 135.33 advanced placement, international baccalaureate, or both, credit 135.34 and placement policy for the scholarship recipients. In 135.35 addition, each college or university must certify these policies 135.36 to the department each year. The department must provide each 136.1 secondary school in the state with a copy of the post-secondary 136.2 advanced placement and international baccalaureate policies each 136.3 year. 136.4 $375,000 each year is for teacher stipends. A teacher who 136.5 teaches an advanced placement or international baccalaureate 136.6 course shall receive a stipend for each student in that 136.7 teacher's course who receives a three or better on the advanced 136.8 placement or a four or better on the international baccalaureate 136.9 examination that covers the subject matter of the course. The 136.10 commissioner shall determine the payment process and the amount 136.11 of the teacher stipend ranging from $25 to $50 for each student 136.12 receiving a qualifying score. 136.13 A stipend awarded to a teacher under this subdivision shall 136.14 not be a mandatory subject of bargaining under Minnesota 136.15 Statutes, chapter 179A, or any other law and shall not be a term 136.16 or condition of employment. The amount of any award shall be 136.17 final and shall not be subject to review by an arbitrator 136.18 through any grievance or other process or by a court through any 136.19 appeal process. 136.20 Any balance in the first year does not cancel but is 136.21 available in the second year. 136.22 Sec. 20. Laws 1997, First Special Session chapter 4, 136.23 article 5, section 28, subdivision 9, is amended to read: 136.24 Subd. 9. [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For 136.25 grants to collaborative urban educator programs that prepare and 136.26 license people of color to teach: 136.27 $895,000 ..... 1998 136.28 $150,000 ..... 1999 136.29 This appropriation is available until June 30, 1999. 136.30 Sec. 21. [RULE REVISION.] 136.31 The state board of education shall amend or repeal those 136.32 portions of Minnesota Rules, parts 3501.0010 to 3501.0180, 136.33 necessary to conform with the basic skills testing requirements 136.34 in reading and mathematics under Minnesota Statutes, section 136.35 121.1113, subdivision 1. 136.36 Sec. 22. [EXEMPTION.] 137.1 Any contract entered into during the 1996-1997 school year 137.2 authorizing a charter school under Minnesota Statutes, section 137.3 120.064, subdivision 5, is exempt from the amended requirements 137.4 of Minnesota Statutes, section 120.064, subdivision 11, only as 137.5 long as the sponsor of the charter school finds and can 137.6 adequately demonstrate to the state board of education that the 137.7 charter school continues without interruption to satisfactorily 137.8 meet all its performance outcomes. If either the charter school 137.9 sponsor or the state board of education determines that the 137.10 charter school under this section is not satisfactorily meeting 137.11 one or more of its performance outcomes, the amended 137.12 requirements of Minnesota Statutes, section 120.064, subdivision 137.13 11, apply to that charter school. 137.14 Sec. 23. [REPORT ON COOPERATIVE SPONSORSHIPS.] 137.15 A school district shall immediately transmit to the 137.16 commissioner of children, families, and learning information 137.17 about each decision to deny a home school a cooperative 137.18 sponsorship under state high school league rules or to otherwise 137.19 deny a home school student an opportunity to participate in the 137.20 district's extracurricular activities. The school district 137.21 shall transmit the information in the form and manner the 137.22 commissioner requires. The commissioner shall prepare an 137.23 interim written report by February 1, 1999, and a final written 137.24 report by February 1, 2000, for the speaker of the house, the 137.25 senate majority leader, and the chairs of the house and senate 137.26 education committees detailing by school district the instances 137.27 when a school district denies a home school a cooperative 137.28 sponsorship or a home school student an opportunity to 137.29 participate in an extracurricular activity and the district 137.30 rationale for the denial. 137.31 Sec. 24. [YEAR-ROUND SCHOOL/EXTENDED WEEK OR DAY PILOT 137.32 PROGRAM.] 137.33 (a) Consistent with the terms for receiving program grants 137.34 under Laws 1995, First Special Session chapter 3, article 7, 137.35 section 4, as amended by Laws 1996, chapter 412, article 7, 137.36 section 13, independent school district No. 241, Albert Lea, is 138.1 eligible to receive additional grant funding for its year-round 138.2 school/extended week or day pilot program. 138.3 (b) The commissioner of children, families, and learning, 138.4 with the assistance of independent school district No. 241, 138.5 Albert Lea, shall evaluate the efficacy of the district's 138.6 program and submit a report to the education committees of the 138.7 legislature by February 1, 2001. The commissioner shall include 138.8 in the report sufficient information to permit other school 138.9 districts to readily replicate the program if the commissioner 138.10 determines that the program is successful. 138.11 Sec. 25. [COUNSELOR ASSESSMENT.] 138.12 The department of children, families, and learning, in 138.13 consultation with affected groups, shall conduct an assessment 138.14 of the need for expanding the number of counselors in school 138.15 districts. As part of the assessment, the department shall 138.16 consider recommended ratios and the costs of meeting these, 138.17 alternative strategies for collaboration to provide counseling 138.18 services to pupils especially in small districts, mechanisms to 138.19 strengthen collaboration between school districts and local 138.20 colleges and universities in providing information and 138.21 experience to pupils, and suggestions for meeting the needs of 138.22 pupils for counseling that is focused on academic and career 138.23 needs and planning. The department shall report its findings 138.24 and recommendations to the education committees of the house and 138.25 senate as part of its 2000-2001 biennial budget request. 138.26 Sec. 26. [YOUTH ATHLETIC DEMONSTRATION PROGRAM.] 138.27 (a) A demonstration athletic grant program through special 138.28 school district No. 1, Minneapolis, and the Minneapolis park and 138.29 recreation board is established for children ages seven to 14 at 138.30 Waite Park school. The goal of the demonstration program is to 138.31 develop a neighborhood-based athletic program that teaches 138.32 sports fundamentals to students that will lead to their 138.33 participation in high school level athletics. The program shall 138.34 be year-round and shall require both in-school and after-school 138.35 participation by students. A student who satisfactorily 138.36 completes the program curriculum shall receive secondary course 139.1 credit and the credit shall count towards the student's 139.2 graduation requirements consistent with Minnesota Statutes, 139.3 section 126.83. 139.4 (b) The program shall be established at Waite Park school 139.5 in Minneapolis where the school facility and park and recreation 139.6 facility are jointly located and where the school district has 139.7 established a neighborhood-based school for enrollment 139.8 purposes. The school district and the park and recreation board 139.9 shall recruit at-risk students and those students who have not 139.10 participated in current after-school park programs to 139.11 participate in the demonstration project. 139.12 (c) The program funds shall be used for recreational 139.13 professionals at the park board to coordinate the program and 139.14 licensed teachers employed in the district; internships for 139.15 students at the University of Minnesota, Augsburg College, or 139.16 other post-secondary institutions to work in the program; master 139.17 coaches to train coaches; transportation costs; facilities' 139.18 costs; and assistance to neighborhood park athletic councils. 139.19 (d) The school district and the park board shall report to 139.20 the commissioner of children, families, and learning on the 139.21 outcome of the program. Up to $10,000 of the appropriation in 139.22 section 30 may be used for the planning of a multipurpose 139.23 community education and recreation center at a northeast park 139.24 adjacent to a northeast school. The commissioner shall report 139.25 to the education committees of the legislature on the program 139.26 and the advisability of creating a statewide program by March 139.27 15, 1999. 139.28 Sec. 27. [RESIDENTIAL ACADEMY PROGRAM.] 139.29 Subdivision 1. [PUBLIC GRANT RECIPIENT.] The commissioner 139.30 of children, families, and learning may award a grant to a 139.31 public organization for start-up costs for residential academies 139.32 for students in grades 4 through 12 who express a desire to 139.33 attend a residential academy that provides a secure and 139.34 nurturing learning environment, have demonstrated an interest in 139.35 learning and a potential for academic achievement, and who: 139.36 (1) perform or are at risk of performing below the academic 140.1 performance level for pupils of the same age; 140.2 (2) are at least one year behind in satisfactorily 140.3 completing coursework or obtaining credits for graduation; or 140.4 (3) have experienced homelessness or an unstable home 140.5 environment. 140.6 Subd. 2. [ORGANIZATIONAL STRUCTURE.] The public grant 140.7 recipient may collaborate with other organizations in effecting 140.8 this subdivision. 140.9 (a) Enrollment is voluntary. A student may be referred to 140.10 an academy by a parent or guardian, the student's county of 140.11 residence, the student's school, health care provider, or the 140.12 judicial system. 140.13 (b) A residential academy must provide an education program 140.14 for the resident students to: 140.15 (1) increase school attendance; 140.16 (2) increase academic achievement; 140.17 (3) enable secondary students to earn a high school 140.18 diploma; and 140.19 (4) improve for secondary students the transition to 140.20 post-secondary education or the transition from school to work. 140.21 The academy may collaborate with a school district or 140.22 charter school to provide the education program. 140.23 (c) To the extent allowed in law, education and social 140.24 services funding shall follow each child from the child's school 140.25 district or county of residence to the academy. 140.26 (d) The cost of residential care for a student may be 140.27 covered under a sliding fee program based on student need. 140.28 (e) An academy may receive any gift, grant, bequest, or 140.29 devise. 140.30 (f) The commissioner of children, families, and learning 140.31 shall prescribe the form and manner of applications. The 140.32 commissioner shall consider the academy's location, the 140.33 composition of the academy's governance structure and board, 140.34 collaborative effort among various organizations, family and 140.35 community involvement, provision of social services, quality of 140.36 education program, after-school enrichment, and provision of 141.1 instruction throughout the entire year in awarding grants. The 141.2 commissioner shall evaluate the residential academy program and 141.3 report to the education committees of the legislature by 141.4 February 15, 2000. 141.5 Sec. 28. [SARTELL; SCHOOL YEAR START DATE.] 141.6 Notwithstanding Minnesota Statutes, section 126.12, 141.7 subdivision 1, and Laws 1997, First Special Session chapter 4, 141.8 article 7, section 49, subdivision 1, independent school 141.9 district No. 748, Sartell, may begin the 1998-1999 school year 141.10 before Labor Day only by the number of days necessary to 141.11 accommodate the district building construction project. 141.12 Sec. 29. [HOLDINGFORD; SCHOOL YEAR START DATE.] 141.13 Notwithstanding Minnesota Statutes, section 126.12, 141.14 subdivision 1, and Laws 1997, First Special Session chapter 4, 141.15 article 7, section 49, subdivision 1, independent school 141.16 district No. 738, Holdingford, may begin the 1998-1999 school 141.17 year on the Monday prior to Labor Day. 141.18 Sec. 30. [BROWNS VALLEY; SCHOOL YEAR START DATE.] 141.19 Notwithstanding Minnesota Statutes, section 126.12, 141.20 subdivision 1, and Laws 1997 First Special Session, chapter 4, 141.21 article 7, section 49, subdivision 1, independent school 141.22 district No. 801, Browns Valley, may begin the 1998-99 school 141.23 year on August 24, 1998, to accommodate its shared school 141.24 calendar with the Sisseton, South Dakota, school district. 141.25 Sec. 31. [COMMISSIONER OF CHILDREN, FAMILIES, AND 141.26 LEARNING.] 141.27 The commissioner of children, families, and learning shall 141.28 designate a staff member as a resource person for gifted and 141.29 talented programs to provide assistance to parents and school 141.30 districts. The commissioner shall pay all costs for that staff 141.31 member out of existing department appropriations. 141.32 Sec. 32. [RESIDENCY REQUIREMENT.] 141.33 The downtown Minneapolis magnet school that is part of the 141.34 western metropolitan education program may enroll in the magnet 141.35 school only those otherwise qualified students who reside within 141.36 one of the nine participating school districts. No student 142.1 residing in any other district and participating in a program 142.2 under Minnesota Statutes, section 120.062, may enroll in the 142.3 magnet school. 142.4 Sec. 33. [TASK FORCE ON KINDERGARTEN THROUGH GRADE 12 142.5 EDUCATION GOVERNANCE STRUCTURE.] 142.6 Subdivision 1. [ESTABLISHMENT; PURPOSE.] A task force on 142.7 kindergarten through grade 12 education governance structure is 142.8 established to examine alternatives for governing the state's 142.9 kindergarten through grade 12 education system. 142.10 Subd. 2. [MEMBERSHIP.] The task force shall consist of 15 142.11 members. The department of children, families, and learning 142.12 shall provide staff support for task force activities. Task 142.13 force members, appointed by the panel under subdivision 3, must 142.14 include five people directly involved in public education, five 142.15 people who represent state or local governments, and five people 142.16 who are public members, including parents, business leaders, 142.17 labor leaders, and others who have demonstrated a commitment to 142.18 excellence in Minnesota public schools. Membership terms and 142.19 removal are governed by Minnesota Statutes, section 15.059. 142.20 Subd. 3. [PANEL.] A panel, composed of one person 142.21 appointed by the governor, one person appointed by the speaker 142.22 of the house of representatives, and one person appointed by the 142.23 subcommittee on committees of the senate committee on rules and 142.24 administration, shall appoint the members of the task force. 142.25 The panel shall consider gender and geographical and racial 142.26 diversity in making the appointments. The commissioner of 142.27 children, families, and learning shall convene the first meeting 142.28 of the panel. The panel must make the first appointments to the 142.29 task force by July 15, 1998. 142.30 Subd. 4. [TASK FORCE ACTIVITIES.] The task force shall 142.31 examine alternatives for governing the state's kindergarten 142.32 through grade 12 education system by considering at least the 142.33 following: 142.34 (1) the roles of the legislature, governor's office, state 142.35 board of education, and the commissioner of children, families, 142.36 and learning in making statewide policy and administrative 143.1 decisions affecting kindergarten through grade 12 education; 143.2 (2) the extent to which the current structure of regional 143.3 and local government units, including service units, education 143.4 districts, school districts, city councils, and county boards, 143.5 promotes or inhibits intergovernmental collaboration; 143.6 (3) how to facilitate broad-based collaboration between 143.7 schools and state and county-based social service agencies 143.8 serving the same or similar populations of children and 143.9 families; and 143.10 (4) how to best accommodate changing educational needs and 143.11 demands. 143.12 Subd. 5. [REPORT.] The task force shall submit a report of 143.13 its findings and recommendations to the chairs of the education 143.14 committees in the house and the senate by February 15, 1999. 143.15 Subd. 6. [EXPIRATION.] The task force expires on June 1, 143.16 1999. 143.17 Sec. 34. [RECOMMENDATIONS ON A CENTRAL DEPOSITORY OF 143.18 EMPLOYMENT DATA.] 143.19 Subdivision 1. [WORKING GROUP.] The commissioner of 143.20 children, families, and learning shall convene a working group 143.21 to recommend data management policies and appropriate organizing 143.22 structures and operational practices for a central depository of 143.23 data containing licensing and employment information about 143.24 elementary and secondary school teachers employed in Minnesota 143.25 school districts. The purpose of the depository is to help 143.26 protect K-12 students and their teachers. The working group 143.27 must include one representative from each of the following 143.28 organizations: the state board of teaching; the teacher 143.29 licensing division in the department of children, families, and 143.30 learning; the Minnesota school boards association; the Minnesota 143.31 education association; the Minnesota federation of teachers; the 143.32 public information policy analysis division of the state 143.33 department of administration; the association of school 143.34 personnel administrators; the Minnesota association of school 143.35 business officials; and any other groups the commissioner 143.36 determines are relevant. By February 1, 1999, the commissioner 144.1 shall submit the group's recommendations concerning establishing 144.2 and operating a central depository of teachers' employment data, 144.3 including recommended statutory changes, to the education 144.4 committees of the legislature. The commissioner shall convene 144.5 the working group beginning June 15, 1998. 144.6 Subd. 2. [ISSUES TO RESOLVE.] In recommending how to 144.7 establish and operate a central depository of teachers' 144.8 employment data, the working group must address at least the 144.9 following: 144.10 (1) whether the state board of teaching or other state 144.11 entity is the most appropriate depository of employment-related 144.12 data; 144.13 (2) what kinds of state and local employment-related data 144.14 on elementary and secondary school teachers should be gathered 144.15 and stored; 144.16 (3) what mechanisms should be developed for reporting state 144.17 and school district data on teachers to ensure that stored data 144.18 are timely and accurate; 144.19 (4) what policies should be adopted to ensure the integrity 144.20 and privacy of the data; 144.21 (5) what policies should govern the access of individuals 144.22 and organizations to the data, including the release of 144.23 personnel data to prospective employers; 144.24 (6) what should be the extent of liability and immunity 144.25 from liability for individuals and organizations that release 144.26 data; and 144.27 (7) other related matters affecting the collecting, 144.28 accessing, or releasing of data and the need to protect students 144.29 and teachers. 144.30 Sec. 35. [RECOMMENDATIONS FOR ALTERNATIVE SCHOOL YEAR 144.31 CALENDARS.] 144.32 Subdivision 1. [WORKING GROUP.] The commissioner of 144.33 children, families and learning shall convene a working group to 144.34 consider alternative school year calendars, including at least 144.35 45-15 plans, four-quarter plans, quinmester plans, extended 144.36 learning year plans, flexible all-year plans, and four-day week 145.1 plans, and recommend to the legislature those alternative school 145.2 year calendars that best allow school districts to meet the 145.3 educational needs of their students. The working group must 145.4 include one representative from each of the following 145.5 organizations: the Minnesota school boards association; the 145.6 Minnesota education association; the Minnesota federation of 145.7 teachers; the Minnesota association of school administrators; 145.8 the Minnesota association of secondary school principals; the 145.9 Minnesota elementary school principals' association; the 145.10 Minnesota association for pupil transportation; the Minnesota 145.11 association for supervision and curriculum; the Minnesota 145.12 congress of parents, teachers and students; the Minnesota state 145.13 high school league; the Minnesota business partnership; and the 145.14 Minnesota restaurant, hotel and resort associations. By 145.15 February 1, 1999, the commissioner shall submit the group's 145.16 recommendations concerning the alternative school year calendars 145.17 that best allow school districts to meet the educational needs 145.18 of their students to the chairs of the education committees of 145.19 the legislature. 145.20 Subd. 2. [ISSUE TO RESOLVE.] In recommending to the 145.21 legislature the alternative school year calendars that best 145.22 allow school districts to meet the educational needs of their 145.23 students, the working group must at least consider: 145.24 (1) how buildings and other facilities can be optimally 145.25 used during an entire year; 145.26 (2) what the optimal learning year schedule is of 145.27 elementary and secondary disabled students and staff in schools 145.28 and residential facilities; 145.29 (3) how a district divides its students among its 145.30 facilities to accommodate an alternative school year calendar; 145.31 (4) how a district accommodates an alternative school year 145.32 calendar in the context of the public employment labor relations 145.33 act; 145.34 (5) what parent involvement is required in establishing an 145.35 alternative school year calendar; 145.36 (6) how school staff is assigned in a district with fewer 146.1 than all facilities adopting an alternative school year 146.2 calendar; 146.3 (7) how teachers' contracting rights are affected by an 146.4 alternative school year calendar; 146.5 (8) what educational standards and requirements apply to a 146.6 district operating an alternative school year calendar; 146.7 (9) what adjustments of attendance and apportionments of 146.8 state aid are required; and addressed in an alternative school 146.9 year calendar. 146.10 Sec. 36. [PROFILE OF LEARNING REPORT.] 146.11 The department of children, families and learning shall 146.12 submit a written report to the education committees of the 146.13 legislature by January 15, 1999 itemizing all direct and 146.14 indirect state and local revenues actually expended in 146.15 developing and fully implementing the profile of learning rule 146.16 under Minnesota Statutes 1997 Supplement, section 121.11, 146.17 subdivision 7c, and all projected future expenditures needed to 146.18 fully implement the rule statewide. Among the costs to be 146.19 itemized in the report are the costs to date and projected 146.20 future costs of developing, promulgating and fully implementing 146.21 the rule statewide and the costs to date and projected future 146.22 costs of providing staff development training to fully implement 146.23 the rule statewide. The department shall submit the report to 146.24 the legislative auditor in a timely fashion for review and 146.25 comment by the legislative auditor before submitting the report 146.26 to the legislature. The report shall include as an attachment 146.27 all comments by the legislative auditor. 146.28 Sec. 37. [APPROPRIATION; BOARD OF REGENTS.] 146.29 $500,000 is appropriated in fiscal year 1999 from the 146.30 general fund to the board of regents of the University of 146.31 Minnesota for the purposes of Minnesota Statutes, section 146.32 121.1115, subdivisions 1b and 1c. 146.33 Sec. 38. [APPROPRIATIONS.] 146.34 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 146.35 LEARNING.] The sums indicated in this section are appropriated 146.36 from the general fund to the department of children, families, 147.1 and learning for the fiscal years designated. 147.2 Subd. 2. [REMOTE SITE CONSULTING SERVICES; MINNESOTA 147.3 LEARNING RESOURCE CENTER.] To expand attention and reading 147.4 readiness programs and providing remote site consulting services: 147.5 $ 150,000 ..... 1999 147.6 This appropriation is available to the New Visions program 147.7 for two purposes: a grant for remote-site consulting services 147.8 for replicating charter school No. 4011, New Visions program at 147.9 two other school sites; and neurophysiological models, including 147.10 Boost-Up, EEG neurofeedback, developmental optometry, and 147.11 auditory stimulation for assessing, treating, and teaching 147.12 children with learning problems to improve their attention 147.13 skills, classroom behavior, and academic performance, to acquire 147.14 the space and technology needed to establish and equip the 147.15 Minnesota learning resource center. 147.16 Subd. 3. [NONTRADITIONAL CAREERS FOR GIRLS AND WOMEN.] (a) 147.17 For grants to organizations for programs that encourage and 147.18 assist girls and women to enter nontraditional careers in the 147.19 trades and in manual and technical occupations: 147.20 $ 20,000 ..... 1999 147.21 The appropriation is available until June 30, 1999. 147.22 (b) To be eligible for a grant under this section, a 147.23 program must include outreach to girls and women through public 147.24 and private elementary, junior high, and high schools, 147.25 appropriate community organizations that work directly with 147.26 girls and women, or existing state and county employment and 147.27 training programs. The outreach must consist of general 147.28 information concerning opportunities for women in the trades, 147.29 manual, and technical occupations, including specific fields 147.30 where worker shortage exists, and specific information about 147.31 training programs offered. The outreach must also include 147.32 mentoring and hands-on opportunities for girls to learn about 147.33 nontraditional careers. The outreach may include printed or 147.34 recorded information, presentations to girls and women, or 147.35 ongoing contact with the appropriate staff. 147.36 Subd. 4. [STUDY ON ENCOURAGING SCHOOL DISTRICTS TO ACCEPT 148.1 ACADEMICALLY AT-RISK STUDENTS UNDER OPEN ENROLLMENT.] For 148.2 developing recommendations on how the state's open enrollment 148.3 program under Minnesota Statutes, section 120.062, can be 148.4 amended to encourage school districts that limit open enrollment 148.5 of nonresident students to give priority to accepting at-risk 148.6 nonresident students: 148.7 $ 20,000 ..... 1999 148.8 The commissioner shall include in the recommendations, 148.9 among other things: a definition of at-risk student; an 148.10 incentive for encouraging school districts to accept nonresident 148.11 at-risk students, including accepting a minimum number of such 148.12 students from a single attendance area; a mechanism for 148.13 transporting the students to the nonresident school district; a 148.14 process for providing timely, useful, and accessible information 148.15 to families of at-risk students; a method for ensuring that 148.16 nonresident at-risk students receive ongoing student counseling 148.17 services while attending the nonresident school district; and a 148.18 funding structure to accommodate the recommendations. The 148.19 commissioner shall present the written recommendations by 148.20 February 1, 1999, to the education committees of the legislature. 148.21 Subd. 5. [YEAR-ROUND SCHOOL/EXTENDED WEEK OR DAY PILOT 148.22 PROGRAM.] For independent school district No. 241, Albert Lea, 148.23 for an additional year-round school/extended week or day pilot 148.24 program grant under section 24: 148.25 $ 60,000 ..... 1999 148.26 The appropriation is available until June 30, 2000. 148.27 Subd. 6. [UNLIMITED POSSIBILITIES PLAN.] For a grant to a 148.28 nonprofit agency representing the private alternative schools: 148.29 $ 100,000 ..... 1999 148.30 The purpose of the grant is to support the Unlimited 148.31 Possibilities Plan to assist student transition from secondary 148.32 school to college or gainful employment including mentoring 148.33 programs, post-secondary training, career exploration, and 148.34 placement services. The grant recipient must match state funds 148.35 with an equal amount of funds raised from nonpublic sources. 148.36 This appropriation does not cancel but is available until 149.1 June 30, 2000. 149.2 Subd. 7. [MINNESOTA COUNCIL ON ECONOMIC EDUCATION.] For a 149.3 grant to the Minnesota Council on Economic Education to provide 149.4 staff development to teachers for implementing of the state 149.5 graduation standards in learning areas relating to economic 149.6 education: 149.7 $ 200,000 ..... 1999 149.8 The commissioner and the council must develop the expected 149.9 results of the staff development, the eligible participants, the 149.10 evaluation plan, and the amount of direct and in-kind 149.11 contributions of the council. 149.12 Subd. 8. [YOUTH ATHLETIC DEMONSTRATION PROGRAM.] For a 149.13 grant to special school district No. 1, Minneapolis, and the 149.14 Minneapolis park and recreation board to establish a youth 149.15 athletic demonstration program under section 26: 149.16 $ 100,000 ..... 1999 149.17 Subd. 9. [MODEL DISTANCE LEARNING GRANT; LAKE OF THE 149.18 WOODS.] For a grant to independent school district No. 390, Lake 149.19 of the Woods, for developing a model distance learning program: 149.20 $ 250,000 ..... 1999 149.21 The model program must address students' curriculum needs 149.22 for vocational programs, advanced collegiate level courses, 149.23 gifted and talented programming, programming for students with 149.24 disabilities, and other areas of programming made more difficult 149.25 because of the school district's geographic isolation. 149.26 Subd. 10. [SCHOOL RESTRUCTURING GRANT.] For a school 149.27 restructuring grant to a nonstate organization to develop 149.28 systemic site decision-making models and implement systemic site 149.29 decision-making in school districts: 149.30 $ 500,000 ..... 1999 149.31 Sec. 39. [REPEALER.] 149.32 Minnesota Statutes 1997 Supplement, section 135A.081, is 149.33 repealed. 149.34 Sec. 40. [EFFECTIVE DATES.] 149.35 (a) Consistent with the requirements in Minnesota Statutes, 149.36 section 123.34, subdivision 9, sections 1 and 2 are effective 150.1 for superintendents' contracts negotiated to apply beginning the 150.2 first day of instruction for the 1998-1999 school year and 150.3 thereafter. 150.4 (b) Sections 3, 4, 6, 8, 15, 16, 17, 18, and 22 are 150.5 effective for the 1998-1999 school year and thereafter. 150.6 (c) Section 9 is effective for the profile of learning of 150.7 the graduation rule authorized under Minnesota Statutes, section 150.8 121.11, subdivision 7c, and adopted after January 1, 1998. 150.9 (d) Sections 23, 24, 26, 27, 30, 33, 35, 36, and 39 are 150.10 effective the day following final enactment. 150.11 ARTICLE 6 150.12 EDUCATION POLICY ISSUES 150.13 Section 1. Minnesota Statutes 1997 Supplement, section 150.14 124.2601, subdivision 3, is amended to read: 150.15 Subd. 3. [REVENUEAID.] Adult basic educationrevenueaid 150.16 for each approved program equals 65 percent of the general 150.17 education formula allowance times the number of full-time 150.18 equivalent students in its adult basic education program. 150.19 Sec. 2. Minnesota Statutes 1997 Supplement, section 150.20 124.2601, subdivision 6, is amended to read: 150.21 Subd. 6. [AID GUARANTEE.](a) For fiscal year 1994, any150.22adult basic education program that receives less state aid under150.23subdivisions 3 and 7 than from the aid formula for fiscal year150.241992 shall receive the amount of aid it received in fiscal year150.251992.150.26(b) For 1995, 1996, and 1997 fiscal years, an adult basic150.27education program that receives aid shall receive at least the150.28amount of aid it received in fiscal year 1992 under subdivisions150.293 and 7, plus aid equal to the amount of revenue that would have150.30been raised for taxes payable in 1994 under Minnesota Statutes150.311992, section 124.2601, subdivision 4, minus the amount raised150.32under subdivision 4.150.33(c)For fiscal year 1998, any adult basic education program 150.34 that receives less state aid than in fiscal year 1997 shall 150.35 receive additional aid equal to 80 percent of the difference 150.36 between its 1997 aid and the amount of aid under Minnesota 151.1 Statutes 1997 Supplement, section 124.2601, subdivision 5. For 151.2 fiscal year 1999and later, additional aid under this 151.3 paragraphmust be reduced by 20 percent each yearequals 80 151.4 percent of the additional aid computed for fiscal year 1998. 151.5 For fiscal year 2000, the additional aid under this paragraph 151.6 equals 60 percent of the additional aid computed for fiscal year 151.7 1998. For fiscal year 2001, the additional aid under this 151.8 paragraph equals 40 percent of the additional aid computed for 151.9 fiscal year 1998. For fiscal year 2002, the additional aid 151.10 under this paragraph equals 20 percent of the additional aid 151.11 computed for fiscal year 1998. For fiscal year 2003 and later, 151.12 the additional aid under this paragraph equals zero. 151.13 Sec. 3. Minnesota Statutes 1997 Supplement, section 151.14 124.2711, subdivision 2a, is amended to read: 151.15 Subd. 2a. [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 151.16 obtain early childhood family education revenue, a district may 151.17 levy an amount equal to the tax rate of.653.45 percent times 151.18 the adjusted tax capacity of the district for the year preceding 151.19 the year the levy is certified. If the amount of the early 151.20 childhood family education levy would exceed the early childhood 151.21 family education revenue, the early childhood family education 151.22 levy shall equal the early childhood family education revenue. 151.23 Sec. 4. Minnesota Statutes 1997 Supplement, section 151.24 124.2713, subdivision 6, is amended to read: 151.25 Subd. 6. [COMMUNITY EDUCATION LEVY.] To obtain community 151.26 education revenue, a district may levy the amount raised by a 151.27 tax rate of1.09.41 percent times the adjusted net tax capacity 151.28 of the district. If the amount of the community education levy 151.29 would exceed the community education revenue, the community 151.30 education levy shall be determined according to subdivision 6a. 151.31 Sec. 5. Minnesota Statutes 1996, section 124.2713, 151.32 subdivision 6a, is amended to read: 151.33 Subd. 6a. [COMMUNITY EDUCATION LEVY; DISTRICTS OFF THE 151.34 FORMULA.] If the amount of the community education levy for a 151.35 district exceeds the district's community education revenue, the 151.36 amount of the community education levy is limited tothe sum of:152.1(1)the district's community education revenue according to 152.2 subdivision 1; plus. 152.3(2) the amount of the aid reduction for the same fiscal152.4year according to subdivision 6b.152.5For purposes of statutory cross-reference, a levy made152.6according to this subdivision is the levy made according to152.7subdivision 6.152.8 Sec. 6. Minnesota Statutes 1996, section 124.646, 152.9 subdivision 4, is amended to read: 152.10 Subd. 4. [SCHOOL FOOD SERVICE FUND.] (a) The expenses 152.11 described in this subdivision must be recorded as provided in 152.12 this subdivision. 152.13 (b) In each school district, the expenses for a school food 152.14 service program for pupils must be attributed to a school food 152.15 service fund. Under a food service program, the school food 152.16 service may prepare or serve milk, meals, or snacks in 152.17 connection with school or community service activities. 152.18 (c) Revenues and expenditures for food service activities 152.19 must be recorded in the food service fund. The costs of 152.20 processing applications, accounting for meals, preparing and 152.21 serving food, providing kitchen custodial services, and other 152.22 expenses involving the preparing of meals or the kitchen section 152.23 of the lunchroom may be charged to the food service fund or to 152.24 the general fund of the district. The costs of lunchroom 152.25 supervision, lunchroom custodial services, lunchroom utilities, 152.26 and other administrative costs of the food service program must 152.27 be charged to the general fund. 152.28 That portion of superintendent and fiscal manager costs 152.29 that can be documented as attributable to the food service 152.30 program may be charged to the food service fund provided that 152.31 the school district does not employ or contract with a food 152.32 service director or other individual who manages the food 152.33 service program, or food service management company. If the 152.34 cost of the superintendent or fiscal manager is charged to the 152.35 food service fund, the charge must be at a wage rate not to 152.36 exceed the statewide average for food service directors as 153.1 determined by the department of children, families, and learning. 153.2 (d) Capital expenditures for the purchase of food service 153.3 equipment must be made from thecapitalgeneral fund and not the 153.4 food service fund, unless two conditions apply: 153.5 (1) the unreserved balance in the food service fund at the 153.6 end of the last fiscal year is greater than the cost of the 153.7 equipment to be purchased; and 153.8 (2) the department of children, families, and learning has 153.9 approved the purchase of the equipment. 153.10 (e) If the two conditions set out in paragraph (d) apply, 153.11 the equipment may be purchased from the food service fund. 153.12 (f) If a deficit in the food service fund exists at the end 153.13 of a fiscal year, and the deficit is not eliminated by revenues 153.14 from food service operations in the next fiscal year, then the 153.15 deficit must be eliminated by a permanent fund transfer from the 153.16 general fund at the end of that second fiscal year. However, if 153.17 a district contracts with a food service management company 153.18 during the period in which the deficit has accrued, the deficit 153.19 must be eliminated by a payment from the food service management 153.20 company. 153.21 (g) Notwithstanding paragraph (f), a district may incur a 153.22 deficit in the food service fund for up to three years without 153.23 making the permanent transfer if the district submits to the 153.24 commissioner by January 1 of the second fiscal year a plan for 153.25 eliminating that deficit at the end of the third fiscal year. 153.26 (h) If a surplus in the food service fund exists at the end 153.27 of a fiscal year for three successive years, a district may 153.28 recode for that fiscal year the costs of lunchroom supervision, 153.29 lunchroom custodial services, lunchroom utilities, and other 153.30 administrative costs of the food service program charged to the 153.31 general fund according to paragraph (c) and charge those costs 153.32 to the food service fund in a total amount not to exceed the 153.33 amount of surplus in the food service fund. 153.34 Sec. 7. Minnesota Statutes 1997 Supplement, section 153.35 124.6475, is amended to read: 153.36 124.6475 [SUMMER FOOD SERVICE REPLACEMENT AID.] 154.1 States funds are available to compensate 154.2 department-approved summer food program sponsors for reduced 154.3 federal operating reimbursement rates under Public Law Number 154.4 104-193, the federal summer food service program. A sponsor is 154.5 eligible for summer food service replacement aid equal to the 154.6 sum of the following amounts: 154.7 (1) for breakfast service,subtract the current year154.8maximum reimbursement rate from the 1996 maximum reimbursement154.9rate and multiply the result by the number of breakfasts the154.10district servedup to four cents per breakfast served by the 154.11 sponsor during the currentschoolprogram year; 154.12 (2) for lunch or supper service,subtract the current year154.13maximum reimbursement rate from the 1996 maximum reimbursement154.14rate and multiply the result by the number of lunches and154.15suppers the district servedup to 14 cents per lunch or supper 154.16 served by the sponsor during the currentschoolprogram year; 154.17 and 154.18 (3) for supplement service,subtract the current year154.19maximum reimbursement rate from the 1996 maximum reimbursement154.20rate and multiply the result by the number ofup to ten cents 154.21 per supplementmealsserved by thedistrict servedsponsor 154.22 during the currentschoolprogram year. 154.23 Sec. 8. Minnesota Statutes 1997 Supplement, section 154.24 124.648, subdivision 3, is amended to read: 154.25 Subd. 3. [PROGRAM GUIDELINES; DUTIES OF THE COMMISSIONER.] 154.26 (a) The commissioner shall: 154.27 (1) encourage all districts to participate in the school 154.28 milk program for kindergartners; 154.29 (2) prepare program guidelines, not subject to chapter 14 154.30 until July 1, 1998, which will effectively and efficiently 154.31 distribute appropriated and donated money to participating 154.32 districts; and 154.33 (3) seek donations and matching funds from appropriate 154.34 private and public sources. 154.35 (b) Program guidelines may provide for disbursement to 154.36 districts through a mechanism of prepayments or by reimbursement 155.1 for approved program expenses. 155.2(c) It is suggested that the benefits of the school milk155.3program may reach the largest number of kindergarten students if155.4districts are allowed to submit annual bids stating the155.5per-serving level of support that would be acceptable to the155.6district for their participation in the program. The155.7commissioner would review all bids received and approve bids in155.8sufficient number and value to maximize the provision of milk to155.9kindergarten students consistent with available funds.155.10 Sec. 9. Minnesota Statutes 1997 Supplement, section 155.11 124.916, subdivision 2, is amended to read: 155.12 Subd. 2. [RETIRED EMPLOYEE HEALTH BENEFITS.]For taxes155.13payable in 1996, 1997, 1998, and 1999 onlyEach year, a school 155.14 district may levy an amount up to the amount the district is 155.15 required by the collective bargaining agreement in effect on 155.16 March 30, 1992, to pay for health insurance or unreimbursed 155.17 medical expenses for licensed and nonlicensed employees who have 155.18 terminated services in the employing district and withdrawn from 155.19 active teaching service or other active service, as applicable, 155.20 before July 1, 1992. The total amount of the levy each year may 155.21 not exceed $300,000. 155.22 Sec. 10. Minnesota Statutes 1996, section 124A.292, 155.23 subdivision 3, is amended to read: 155.24 Subd. 3. [STAFF DEVELOPMENT LEVY.] A district's levy 155.25 equalsits revenue times the lesser of one or the ratio of:155.26(1) the quotient derived by dividing the district's155.27adjusted net tax capacity for the year before the year the levy155.28is certified by the district's actual pupil units for the school155.29year to which the levy is attributable, to155.30(2) the equalizing factor for the school year to which the155.31levy is attributablethe number of teachers at the site times 155.32 $8.15. 155.33 Sec. 11. Minnesota Statutes 1996, section 471.895, 155.34 subdivision 1, is amended to read: 155.35 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 155.36 subdivision apply to this section. 156.1 (b) "Gift" has the meaning given it in section 10A.071, 156.2 subdivision 1. 156.3 (c) "Interested person" means a person or a representative 156.4 of a person or association that has a direct financial interest 156.5 in a decision that a local official is authorized to make. 156.6 (d) "Local official" means an elected or appointed official 156.7 of a school district, county, or city or of an agency, 156.8 authority, or instrumentality of a school district, county, or 156.9 city. 156.10 Sec. 12. Laws 1997, First Special Session chapter 4, 156.11 article 6, section 20, subdivision 4, is amended to read: 156.12 Subd. 4. [SCHOOL LUNCH AND FOOD STORAGE AID.] (a) For 156.13 school lunch aid according to Minnesota Statutes, section 156.14 124.646, and Code of Federal Regulations, title 7, section 156.15 210.17, and for food storage and transportation costs for United 156.16 States Department of Agriculture donated commodities; and for a 156.17 temporary transfer to the commodity processing revolving fund to 156.18 provide cash flow to permit schools and other recipients of 156.19 donated commodities to take advantage of volume processing rates 156.20 and for school milk aid according to Minnesota Statutes, section 156.21 124.648: 156.22 $7,254,000 ..... 1998 156.23$7,254,000$7,770,000 ..... 1999 156.24 (b) Any unexpended balance remaining from the 156.25 appropriations in this subdivision shall be prorated among 156.26 participating schools based on the number of free, reduced, and 156.27 fully paid federally reimbursable student lunches served during 156.28 that school year. 156.29 (c) If the appropriation amount attributable to either year 156.30 is insufficient, the rate of payment for each fully paid student 156.31 lunch shall be reduced and the aid for that year shall be 156.32 prorated among participating schools so as not to exceed the 156.33 total authorized appropriation for that year. 156.34 (d) Any temporary transfer processed in accordance with 156.35 this subdivision to the commodity processing fund will be 156.36 returned by June 30 in each year so that school lunch aid and 157.1 food storage costs can be fully paid as scheduled. 157.2 (e) Not more than $800,000 of the amount appropriated each 157.3 year may be used for school milk aid. 157.4 (f) The commissioner may reduce other future aid and grant 157.5 payments due to school districts and other organizations for the 157.6 costs of processing and storage of commodities used by the 157.7 district or organization. 157.8 Sec. 13. [SCHOOL CROSSING GUARDS LEVY; HASTINGS.] 157.9 In addition to other levies, independent school district No. 157.10 200, Hastings, may levy up to $55,000 for school crossing guards 157.11 each year. 157.12 Sec. 14. [FUND TRANSFERS; REVENUE USES.] 157.13 Subdivision 1. [USE OF BOND PROCEEDS; ST. 157.14 CLOUD.] Notwithstanding Minnesota Statutes, section 475.58, 157.15 subdivision 4, independent school district No. 742, St. Cloud, 157.16 upon passage of a written resolution specifying the amount and 157.17 purpose of the expenditure, may expend up to $800,000 from its 157.18 building construction fund to purchase a building and site to be 157.19 used for community education purposes. 157.20 Subd. 2. [RESERVED ACCOUNT TRANSFER; 157.21 LYND.] Notwithstanding Minnesota Statutes, sections 121.912 and 157.22 121.9121, on June 30, 1998, independent school district No. 415, 157.23 Lynd, may permanently transfer up to $100,000 from reserve 157.24 accounts in the general fund to the unreserved general fund. 157.25 The transfer may be made from the reemployment account and the 157.26 bus purchase account. Transfers from the reemployment account 157.27 may be made without making a levy reduction. 157.28 Subd. 3. [HEALTH AND SAFETY REVENUE; MOUNDS VIEW.] 157.29 Notwithstanding Minnesota Statutes, section 124.83, subdivision 157.30 6, independent school district No. 621, Mounds View, is 157.31 authorized to use up to $300,000 of its health and safety 157.32 revenue to replace portable classrooms with new construction of 157.33 classrooms. 157.34 Subd. 4. [HEALTH AND SAFETY; ADA-BORUP.] Notwithstanding 157.35 Minnesota Statutes, section 124.83, subdivision 6, independent 157.36 school district No. 2854, Ada-Borup, may use up to $90,000 of 158.1 its health and safety revenue for capital improvements, 158.2 equipment, or furnishings for new facilities. 158.3 Subd. 5. [HEALTH AND SAFETY; EVELETH-GILBERT.] 158.4 Notwithstanding any law to the contrary, independent school 158.5 district No. 2154, Eveleth-Gilbert, may include in its health 158.6 and safety program the amounts necessary to make health and 158.7 safety improvements to an ice arena located within the district 158.8 boundaries. The total amount of revenue approved for this 158.9 purpose shall not exceed $300,000. 158.10 Sec. 15. [OSSEO LEVY.] 158.11 For taxes payable in 1999 only, independent school district 158.12 No. 279, Osseo, may levy a tax in an amount not to exceed 158.13 $800,000. The proceeds of this levy must be used to provide 158.14 instructional services for at-risk children. 158.15 Sec. 16. [APPROPRIATIONS.] 158.16 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 158.17 LEARNING.] The sums indicated in this section are appropriated 158.18 from the general fund to the department of children, families, 158.19 and learning for the fiscal years designated. 158.20 Subd. 2. [HISTORY EDUCATION.] (a) For grants to develop 158.21 and sustain historical educational programming and curriculum 158.22 designed primarily for elementary and secondary school students: 158.23 $ 180,000 ..... 1999 158.24 (b) Of the amount appropriated in paragraph (a), $90,000 is 158.25 for a grant to Murphy's landing living history village for its 158.26 educational programs including education tours, outreach 158.27 programs, and immersion camps and $90,000 is for a grant to 158.28 Ironworld for its historical education programs. 158.29 (c) This appropriation shall be included in the education 158.30 base budget estimates for the 2000-2001 biennium. 158.31 Subd. 3. [MEDIA SPECIALIST.] For a media specialist for 158.32 independent school district No. 707, Nett Lake: 158.33 $ 34,000 ..... 1999 158.34 Sec. 17. [REPEALER.] 158.35 (a) Minnesota Statutes 1997 Supplement, section 124.2601, 158.36 subdivision 4, is repealed. 159.1 (b) Minnesota Statutes 1997 Supplement, section 124.2601, 159.2 subdivision 5, is repealed effective July 1, 1999. 159.3 (c) Minnesota Statutes 1996, section 124.2713, subdivision 159.4 6b, is repealed effective for taxes payable in 1999 and revenue 159.5 for fiscal year 2000. 159.6 (d) Minnesota Statutes 1996, section 124A.292, subdivisions 159.7 2 and 4, are repealed effective for revenue for fiscal year 2000. 159.8 (e) Laws 1997, chapter 231, article 1, section 17, is 159.9 repealed effective the day following final enactment. 159.10 (f) Minnesota Statutes 1996, section 124.647, is repealed. 159.11 Sec. 18. [EFFECTIVE DATE.] 159.12 (a) Sections 11, 13, and 14 are effective the day following 159.13 final enactment. 159.14 (b) Sections 2, 3, 4, 6 to 10, and 14 are effective July 1, 159.15 1998. 159.16 (c) Section 1 is effective July 1, 1999. 159.17 (d) Section 5 is effective for revenue for fiscal year 2000. 159.18 ARTICLE 7 159.19 LIBRARIES 159.20 Section 1. Laws 1997, First Special Session chapter 4, 159.21 article 8, section 4, subdivision 3, is amended to read: 159.22 Subd. 3. [BOARD; APPOINTMENTS.] The resolution in 159.23 subdivision 2 shall provide for a library board offiveseven 159.24 members as follows: two members appointed by the school board 159.25 of independent school district No. 319, one member appointed by 159.26 each town board located within independent school district No. 159.27 319 boundaries, one member appointed by the council of the city 159.28 of Nashwauk, and one member appointed by the Itasca county board 159.29 to represent the unorganized towns within the school district 159.30 territory. 159.31 Sec. 2. [DATABASE ACCESS PROGRAM FOR PUBLIC LIBRARIES AND 159.32 SCHOOL MEDIA CENTERS.] 159.33 Subdivision 1. [ESTABLISHMENT.] The commissioner of 159.34 children, families, and learning shall establish a program to 159.35 provide statewide licenses to commercial electronic databases of 159.36 periodicals, encyclopedias, and associated reference materials 160.1 for school media centers and public libraries. The 160.2 commissioner, in consultation with Minitex and in cooperation 160.3 with the Library Planning Task Force, shall solicit proposals 160.4 for access licenses to commercial vendors of the databases. 160.5 Responses to those proposals shall be evaluated by staff of the 160.6 office of library development and services in the department of 160.7 children, families, and learning, Minitex staff, and a 160.8 representative panel of school media specialists and public 160.9 librarians. 160.10 Subd. 2. [ELIGIBILITY.] Access to the selected databases 160.11 shall be made available to a school or school district that is a 160.12 member of a multicounty, multitype library system as defined in 160.13 Minnesota Statutes, section 134.001, subdivision 6, or a public 160.14 library as defined in Minnesota Statutes, section 134.001, 160.15 subdivision 2, that is a member of a multicounty, multitype 160.16 library system. With appropriate authentication any user of an 160.17 eligible library may have access to the databases from a remote 160.18 site. 160.19 Sec. 3. [APPROPRIATION; DEPARTMENT OF CHILDREN, FAMILIES, 160.20 AND LEARNING.] 160.21 Subdivision 1. [APPROPRIATIONS.] The sums indicated in 160.22 this section are appropriated from the general fund to the 160.23 department of children, families, and learning for the fiscal 160.24 years designated. 160.25 Subd. 2. [REGIONAL LIBRARY SYSTEMS.] For regional library 160.26 systems: 160.27 $250,000 ..... 1999 160.28 The money must be divided equally among the 12 regional public 160.29 library systems established under Minnesota Statutes, section 160.30 134.20, for use in providing library services. 160.31 Subd. 3. [LIBRARY FOR THE BLIND; APPROPRIATION.] For the 160.32 purchase and installation of online catalog software for the 160.33 Minnesota library for the blind and physically handicapped: 160.34 $60,000 ..... 1999 160.35 Subd. 4. [DATABASE ACCESS PROGRAM.] For establishing a 160.36 database access program for public libraries and school media 161.1 centers under section 2: 161.2 $1,200,000 ..... 1999 161.3 Subd. 5. [METRONET.] To the metropolitan multitype library 161.4 consortium for copying and making available to the 11 greater 161.5 Minnesota regional public library systems and the St. Paul and 161.6 Minneapolis libraries, through the Minnesota Center for the 161.7 Book, a series of video cassette tapes of interviews with 161.8 Minnesota authors, for the production and programming costs of 161.9 the northern lights cable program on which the Minnesota authors 161.10 are interviewed, and for operating costs the consortium incurs 161.11 as a result of this provision: 161.12 $40,000 ..... 1999 161.13 Libraries that receive a copy of the series shall make the 161.14 video cassettes readily available to teachers and other members 161.15 of the public interested in learning about the work and lives of 161.16 Minnesota authors. 161.17 ARTICLE 8 161.18 STATE AGENCIES 161.19 Section 1. Laws 1997, First Special Session chapter 4, 161.20 article 10, section 3, subdivision 2, is amended to read: 161.21 Subd. 2. [DEPARTMENT.] For the department of children, 161.22 families, and learning: 161.23 $24,360,000 ..... 1998 161.24$23,978,000$24,178,000 ..... 1999 161.25 (a) Any balance in the first year does not cancel but is 161.26 available in the second year. 161.27 (b) $21,000 each year is from the trunk highway fund. 161.28 (c) $622,000 in 1998 and $627,000 in 1999 is for the 161.29 academic excellence foundation. 161.30 Up to $50,000 each year is contingent upon the match of $1 161.31 in the previous year from private sources consisting of either 161.32 direct monetary contributions or in-kind contributions of 161.33 related goods or services, for each $1 of the appropriation. 161.34 The commissioner of children, families, and learning must 161.35 certify receipt of the money or documentation for the private 161.36 matching funds or in-kind contributions. The unencumbered 162.1 balance from the amount actually appropriated from the 162.2 contingent amount in 1998 does not cancel but is available in 162.3 1999. The amount carried forward must not be used to establish 162.4 a larger annual base appropriation for later fiscal years. 162.5 (d) $207,000 in 1998 and $210,000 in 1999 is for the state 162.6 board of education. 162.7 (e) $230,000 in 1998 and $234,000 in 1999 is for the board 162.8 of teaching. 162.9 (f) The expenditures of federal grants and aids as shown in 162.10 the biennial budget document and its supplements are approved 162.11 and appropriated and shall be spent as indicated. 162.12 (g) The department of children, families, and learning 162.13 shall develop a performance report on the quality of its 162.14 programs and services. The report must be consistent with the 162.15 process specified in Minnesota Statutes, sections 15.90 to 162.16 15.92. The goals, objectives, and measures of this report must 162.17 be developed in cooperation with the chairs of the finance 162.18 divisions of the education committees of the house of 162.19 representatives and senate, the department of finance, and the 162.20 office of legislative auditor. The report must include data to 162.21 indicate the progress of the department in meeting its goals and 162.22 objectives. 162.23 (h) At least $50,000 is to ensure compliance with state and 162.24 federal laws prohibiting discrimination because of race, 162.25 religion, or sex. The department shall use the appropriation to 162.26 provide state-level leadership on equal education opportunities 162.27 which promote elimination of discriminatory practices in the 162.28 areas of race, religion, and sex in public schools and public 162.29 educational agencies under its general supervision and on 162.30 activities including, at least, compliance monitoring and 162.31 voluntary compliance when local school district deficiencies are 162.32 found. 162.33 (i) Notwithstanding Minnesota Statutes, section 15.53, 162.34 subdivision 2, the commissioner of children, families, and 162.35 learning may contract with a school district for a period no 162.36 longer than five consecutive years to work in the development or 163.1 implementation of the graduation rule. The commissioner may 163.2 contract for services and expertise as necessary. The contracts 163.3 are not subject to Minnesota Statutes, sections 16B.06 to 16B.08. 163.4 (j) In preparing the department budget for fiscal years 163.5 2000-2001, the department shall shift all administrative funding 163.6 from aids appropriations into the appropriation for the 163.7 department. 163.8 (k) Reallocations of excesses under Minnesota Statutes, 163.9 section 124.14, subdivision 7, from appropriations within this 163.10 act shall only be made to deficiencies in programs with 163.11 appropriations contained within this act. 163.12 (l) $850,000 each year is for litigation costs and may only 163.13 be used for those purposes. These appropriations are one-time 163.14 only. 163.15 (m) $200,000 in fiscal year 1999 is for mediation expenses 163.16 associated with school funding lawsuits filed against the state. 163.17 (n) Collaborative efforts between the department of 163.18 children, families, and learning and the office of technology, 163.19 as specified in Minnesota Statutes, section 237A.015, include: 163.20 (1) advising the commissioner of children, families, and 163.21 learning on new and emerging technologies, potential business 163.22 partnerships, and technical standards; 163.23 (2) assisting the commissioner of children, families, and 163.24 learning in the sharing of data between state agencies relative 163.25 to children's programs; and 163.26 (3) as requested by the commissioner of children, families, 163.27 and learning, assisting in collaborative efforts for joint 163.28 prekindergarten through grade 12 and higher education projects, 163.29 including the learning network. 163.30 The commissioner of children, families, and learning shall have 163.31 final approval for prekindergarten through grade 12 programs and 163.32 lifelong learning programs, grant awards, and funding decisions. 163.33 Sec. 2. Laws 1997, First Special Session chapter 4, 163.34 article 10, section 4, is amended to read: 163.35 Sec. 4. [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 163.36 CENTER FOR ARTS EDUCATION.] 164.1 The sums indicated in this section are appropriated from 164.2 the general fund to the center for arts education for the fiscal 164.3 years designated: 164.4$5,541,000$5,559,000 ..... 1998 164.5$6,054,000$6,120,000 ..... 1999 164.6 Of the fiscal year 1998 appropriation, $154,000 is to fund 164.7 artist and arts organization participation in the education 164.8 residency and education technology projects, $75,000 is for 164.9 school support for the residency project, and $121,000 is for 164.10 further development of the partners: arts and school for 164.11 students (PASS) program, including pilots. Of the fiscal year 164.12 1999 appropriation, $154,000 is to fund artist and arts 164.13 organizations participation in the education residency project, 164.14 $75,000 is for school support for the residency project,and164.15 $121,000 is to fund the PASS program, including additional 164.16 pilots, and $30,000 is to enhance the implementation of the 164.17 graduation rule and profile of learning for students attending 164.18 the center for arts education. The guidelines for the education 164.19 residency project and the pass program shall be developed and 164.20 defined by the center for arts education in cooperation with the 164.21 Minnesota arts board. The Minnesota arts board shall 164.22 participate in the review and allocation process. The center 164.23 for arts education and the Minnesota arts board shall cooperate 164.24 to fund these projects. 164.25 Any balance in the first year does not cancel but is 164.26 available in the second year. 164.27 Sec. 3. Laws 1997, First Special Session chapter 4, 164.28 article 10, section 5, is amended to read: 164.29 Sec. 5. [APPROPRIATIONS; FARIBAULT ACADEMIES.] 164.30 The sums indicated in this section are appropriated from 164.31 the general fund to the department of children, families, and 164.32 learning for the Faribault academies for the fiscal years 164.33 designated: 164.34$8,910,000$8,949,000 ..... 1998 164.35$8,908,000$8,986,000 ..... 1999 164.36 Any balance in the first year does not cancel but is 165.1 available in the second year. 165.2 In the next biennial budget, the academies must assess 165.3 their progress in meeting the established performance measures 165.4 for the Faribault academies and inform the legislature on the 165.5 content of that assessment. The information must include an 165.6 assessment of its progress by consumers and employees. 165.7 Sec. 4. [EFFECTIVE DATE.] 165.8 Sections 1 to 3 are effective the day following final 165.9 enactment.