HF 3231

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to education; providing for general 
  1.3             education; special programs; lifework development; 
  1.4             facilities and technology; education excellence; other 
  1.5             programs; nutrition programs; libraries; and education 
  1.6             policy; amending Minnesota Statutes 1998, sections 
  1.7             120B.13, subdivision 4; 122A.25, by adding a 
  1.8             subdivision; 123B.143, subdivision 1; 123B.51, 
  1.9             subdivision 6; 123B.77, subdivision 3; 123B.79, 
  1.10            subdivision 7; 123B.86, subdivision 1; 123B.88, 
  1.11            subdivision 3; 124D.081, subdivision 6; 124D.128, 
  1.12            subdivision 4; 124D.454, subdivisions 4, 6, and 7; 
  1.13            124D.86, subdivision 6, and by adding subdivisions; 
  1.14            124D.892, subdivision 3; and 126C.12, as amended; 
  1.15            Minnesota Statutes 1999 Supplement, sections 122A.09, 
  1.16            subdivision 4; 123B.83, subdivision 4; 123B.90, 
  1.17            subdivision 2; 123B.91, subdivision 1; 124D.10, 
  1.18            subdivisions 3, 4, 8, 11, and 23; 124D.11, 
  1.19            subdivisions 1, 4, and 6; 124D.1155, subdivision 2; 
  1.20            124D.84, subdivision 1; 124D.86, subdivisions 1 and 3; 
  1.21            125A.51; 126C.10, subdivisions 25 and 26; 126C.17, 
  1.22            subdivision 9; 127A.42, subdivision 3; and 127A.51; 
  1.23            Laws 1999, chapter 241, article 2, section 60, 
  1.24            subdivision 9; article 3, section 3, subdivision 4; 
  1.25            article 5, section 18, subdivision 6; article 8, 
  1.26            section 4, subdivision 5; and article 10, section 6; 
  1.27            repealing Minnesota Statutes 1998, sections 126C.30; 
  1.28            126C.31; 126C.32; 126C.33; 126C.34; 126C.35; and 
  1.29            126C.36; Minnesota Rules, part 3535.9920. 
  1.30  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.31                             ARTICLE 1 
  1.32                         GENERAL EDUCATION 
  1.33     Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.34  124D.11, subdivision 1, is amended to read: 
  1.35     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) General 
  1.36  education revenue must be paid to a charter school as though it 
  1.37  were a district.  The general education revenue for each 
  2.1   adjusted marginal cost pupil unit is the state average general 
  2.2   education revenue per pupil unit, plus the referendum 
  2.3   equalization aid allowance in the pupil's district of residence, 
  2.4   minus an amount equal to the product of the formula allowance 
  2.5   according to section 126C.10, subdivision 2, times .0485, 
  2.6   calculated without basic skills revenue, transportation sparsity 
  2.7   revenue, and the transportation portion of the transition 
  2.8   revenue adjustment, plus basic skills revenue as though the 
  2.9   school were a school district. 
  2.10     (b) Notwithstanding paragraph (a), for charter schools in 
  2.11  the first year of operation, general education revenue shall be 
  2.12  computed using the number of adjusted pupil units in the current 
  2.13  fiscal year. 
  2.14     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  2.15  124D.86, subdivision 1, is amended to read: 
  2.16     Subdivision 1.  [USE OF THE REVENUE.] Integration revenue 
  2.17  under this section must be used for programs established under a 
  2.18  desegregation plan filed with the department of children, 
  2.19  families, and learning, according to Minnesota Rules, parts 
  2.20  3535.0100 to 3535.0180 or under court order, to increase.  The 
  2.21  revenue must be used to create or enhance learning opportunities 
  2.22  and reduce the learning gap between learners living in high 
  2.23  concentrations of poverty and their peers which are designed to 
  2.24  provide opportunities for students to have increased interracial 
  2.25  contacts through classroom experiences, staff initiatives, and 
  2.26  other educationally related programs. 
  2.27     Sec. 3.  Minnesota Statutes 1998, section 124D.86, is 
  2.28  amended by adding a subdivision to read: 
  2.29     Subd. 1a.  [BUDGET APPROVAL PROCESS.] Before a district 
  2.30  receives any revenue under subdivision 3, clause (4), the 
  2.31  district must submit to the department of children, families, 
  2.32  and learning, for its review and approval a budget detailing the 
  2.33  costs of the desegregation/integration plan filed under 
  2.34  Minnesota Rules, parts 3535.0100 to 3535.0180.  Notwithstanding 
  2.35  chapter 14, the department may develop criteria for budget 
  2.36  approval.  The criteria developed by the department should 
  3.1   address, at a minimum, the following: 
  3.2      (1) budget items cannot be approved unless they are part of 
  3.3   any overall desegregation plan approved by the district for 
  3.4   isolated sites or by the multidistrict collaboration council and 
  3.5   participation individual members; 
  3.6      (2) the budget must indicate how revenue expenditures will 
  3.7   be used specifically to support increased opportunities for 
  3.8   interracial contact; 
  3.9      (3) components of the budget to be considered by the 
  3.10  department, including staffing, curriculum, transportation, 
  3.11  facilities, materials, and equipment and reasonable planning 
  3.12  costs, as determined by the department; and 
  3.13     (4) if plans are proposed to enhance existing programs, the 
  3.14  total budget being appropriated to the program must be included, 
  3.15  indicating what part is to be funded using integration revenue 
  3.16  and what part is to be funded using other revenues. 
  3.17     Sec. 4.  Minnesota Statutes 1998, section 124D.86, is 
  3.18  amended by adding a subdivision to read: 
  3.19     Subd. 1b.  [PLAN COMPONENTS.] Plans submitted by each 
  3.20  district under Minnesota Rules, parts 3535.0160 and 3535.0170, 
  3.21  must be approved by the district's board before integration 
  3.22  revenue will be awarded.  If a district is applying for revenue 
  3.23  for a plan that is part of a multidistrict council, the 
  3.24  individual district shall not receive revenue unless it approves 
  3.25  the plan adopted by its multidistrict council.  Each plan shall 
  3.26  contain: 
  3.27     (1) an identification of the integration issues at the 
  3.28  sites or districts covered by Minnesota Rules, parts 3535.0100 
  3.29  to 3535.0180; 
  3.30     (2) a description of the community outreach that preceded 
  3.31  the integration plan, such that the commissioner can determine 
  3.32  whether the membership of the planning councils complied with 
  3.33  the requirements of Minnesota Rules, parts 3535.0100 to 
  3.34  3535.0180; and 
  3.35     (3) the specific goals of the integration plan. 
  3.36  By October 31 of the subsequent fiscal year, each district shall 
  4.1   report to the commissioner in writing about the extent to which 
  4.2   the integration goals identified in the plan were met. 
  4.3      Sec. 5.  Minnesota Statutes 1999 Supplement, section 
  4.4   124D.86, subdivision 3, is amended to read: 
  4.5      Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 2000 and 
  4.6   later fiscal years, integration revenue equals the following 
  4.7   amounts: 
  4.8      (1) for independent school district No. 709, Duluth, $207 
  4.9   times the adjusted pupil units for the school year; 
  4.10     (2) for independent school district No. 625, St. Paul, $446 
  4.11  times the adjusted pupil units for the school year; 
  4.12     (3) for special school district No. 1, Minneapolis, $536 
  4.13  times the adjusted pupil units for the school year; and 
  4.14     (4) for a district not listed in clause (1), (2), or (3) 
  4.15  that is required to implement a plan according to the 
  4.16  requirements of Minnesota Rules, parts 3535.0100 to 
  4.17  3535.0180, as proposed in 23 State Register 1344, December 7, 
  4.18  1998, the lesser of 
  4.19     (i) the actual cost of implementing the plan during the 
  4.20  fiscal year minus the aid received under subdivision 6, or 
  4.21     (ii) $93 times the adjusted pupil units for the school year.
  4.22     Any money received by districts in clauses (1) to (3) which 
  4.23  exceeds the amount received in fiscal year 2000 shall be subject 
  4.24  to the budget requirements in subdivision 1a. 
  4.25     Sec. 6.  Minnesota Statutes 1998, section 124D.86, 
  4.26  subdivision 6, is amended to read: 
  4.27     Subd. 6.  [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 
  4.28  integration aid under subdivision 5 must be adjusted for each 
  4.29  pupil residing in a district eligible for integration revenue 
  4.30  under subdivision 3, clause (1), (2), or (3), and attending a 
  4.31  nonresident district under sections 123A.05 to 123A.08, 124D.03, 
  4.32  124D.06, 124D.07, and 124D.08, that is not eligible for 
  4.33  integration revenue under subdivision 3, clause (1), (2), or 
  4.34  (3), and has implemented a plan under Minnesota Rules, parts 
  4.35  3535.0100 to 3535.0180 if the enrollment of the pupil in the 
  4.36  nonresident district contributes to desegregation or integration 
  5.1   purposes.  The adjustments must be made according to this 
  5.2   subdivision.  
  5.3      (b) Aid paid to the district of the pupil's residence must 
  5.4   be reduced by an amount equal to the revenue per resident pupil 
  5.5   unit of the resident district times the number of resident pupil 
  5.6   units attributable to the pupil for the time the pupil is 
  5.7   enrolled in a nonresident district. 
  5.8      (c) Aid paid to a district serving nonresidents must be 
  5.9   increased by an amount equal to the aid reduction to the 
  5.10  resident district under paragraphs (b) and (d) revenue per pupil 
  5.11  unit of the resident district under subdivision 3, clause (1), 
  5.12  (2), or (3), minus the revenue attributable to the pupil in the 
  5.13  nonresident district under subdivision 3, clause (4), for the 
  5.14  time the pupil is enrolled in the nonresident district.  
  5.15     (d) If the amount of the reduction to be made from the aid 
  5.16  of a district is greater than the amount of aid otherwise due 
  5.17  the district, the excess reduction must be made from other state 
  5.18  aids due the district. 
  5.19     Sec. 7.  Minnesota Statutes 1999 Supplement, section 
  5.20  126C.10, subdivision 25, is amended to read: 
  5.21     Subd. 25.  [REGIONAL EQUITY GAP.] The regional equity gap 
  5.22  equals the difference between the fifth and the 90th percentile 
  5.23  of adjusted general revenue per adjusted marginal cost pupil 
  5.24  unit. 
  5.25     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
  5.26  126C.10, subdivision 26, is amended to read: 
  5.27     Subd. 26.  [DISTRICT EQUITY GAP.] A district's equity gap 
  5.28  equals the greater of zero or the difference between the 
  5.29  district's adjusted general revenue and the regional 90th 
  5.30  percentile of adjusted general revenue per adjusted marginal 
  5.31  cost pupil unit. 
  5.32     Sec. 9.  Minnesota Statutes 1998, section 126C.12, as 
  5.33  amended by Laws 1999, chapter 241, article 1, sections 35 and 
  5.34  36, is amended to read: 
  5.35     126C.12 [LEARNING AND DEVELOPMENT REVENUE AMOUNT AND USE.] 
  5.36     Subdivision 1.  [REVENUE.] Of a district's general 
  6.1   education revenue for fiscal year 2000 2001 and thereafter each 
  6.2   school district shall reserve an amount equal to the sum of (1) 
  6.3   $50 times the adjusted marginal cost pupil units plus (2) the 
  6.4   formula allowance multiplied by the following calculation: 
  6.5      (1) (i) the sum of adjusted marginal cost pupil units 
  6.6   pupils in average daily membership, according to section 
  6.7   126C.05, subdivision 5, in kindergarten times .057; plus 
  6.8      (2) (ii) the sum of adjusted marginal cost pupil units 
  6.9   pupils in average daily membership, according to section 
  6.10  126C.05, subdivision 5, in grades 1 to 3 times .115; plus 
  6.11     (3) (iii) the sum of adjusted marginal cost pupil units 
  6.12  pupils in average daily membership, according to section 
  6.13  126C.05, subdivision 5, in grades 4 to 6 times .06. 
  6.14     Subd. 2.  [INSTRUCTOR DEFINED DEFINITIONS.] Primary 
  6.15  instructor (a) "Classroom teacher" means a public employee 
  6.16  licensed by the board of teaching as an elementary teacher and 
  6.17  whose duties are full-time regular classroom instruction, 
  6.18  excluding a teacher for whom federal aids are received or for 
  6.19  whom categorical aids are received pursuant to sections section 
  6.20  125A.76 and 125A.77 or who is an itinerant teacher or provides 
  6.21  instruction outside of the regular classroom.  Except as 
  6.22  provided in section 122A.68, subdivision 6, instructor classroom 
  6.23  teacher does not include supervisory and support personnel, 
  6.24  except school social workers as defined in section 122A.15.  An 
  6.25  instructor A classroom teacher whose duties are less than 
  6.26  full-time instruction must be included as an equivalent only for 
  6.27  the number of hours of instruction in grades kindergarten 
  6.28  through 6 grade 3. 
  6.29     (b) "Class size" means the district wide ratio at each 
  6.30  grade level of the number of full-time students in kindergarten 
  6.31  through grade 3 served at least 40 percent of the time in 
  6.32  regular classrooms to the number of full-time classroom teachers 
  6.33  in kindergarten through grade 3, determined as of October 1 of 
  6.34  each school year. 
  6.35     Subd. 3.  [INSTRUCTION CONTACT TIME.] Instruction may be 
  6.36  provided by a primary instructor, classroom teacher or by a team 
  7.1   of instructors, or by teacher resident supervised by a primary 
  7.2   instructor classroom teachers.  The district must 
  7.3   maximize instructor classroom teacher to learner average 
  7.4   instructional contact time in the core subjects of reading and 
  7.5   mathematics. 
  7.6      Subd. 4.  [REVENUE USE.] (a) Revenue must be used according 
  7.7   to either paragraph (b) or (c). 
  7.8      (b) Revenue must be used to reduce and maintain the 
  7.9   district's instructor to learner ratios average class size in 
  7.10  kindergarten through grade 6 3 to a level of 1 to 17 on 
  7.11  average.  The district must prioritize the use of the revenue to 
  7.12  attain this level initially in kindergarten and grade 1 and then 
  7.13  through the subsequent grades as revenue is available.  
  7.14     (c) The revenue may be used to prepare and use an 
  7.15  individualized learning plan for each learner.  (b) A district 
  7.16  must not increase the district wide instructor-to-learner ratios 
  7.17  class sizes in other grades as a result of reducing 
  7.18  instructor-to-learner ratios class sizes in kindergarten through 
  7.19  grade 6 3.  Revenue may not be used to provide instructor 
  7.20  preparation time.  A district may use a portion of the revenue 
  7.21  reserved under this section to employ up to the same number of 
  7.22  full-time equivalent education assistants or aides as the 
  7.23  district employed during the 1992-1993 school year under 
  7.24  Minnesota Statutes 1992, section 124.331, subdivision 2, or to 
  7.25  employ up to the same number of full-time equivalent instructors 
  7.26  not meeting the definition of a classroom teacher under 
  7.27  subdivision 2 as the district employed during the 1999-2000 
  7.28  school year under this section provided the district has records 
  7.29  to justify the action. 
  7.30     Subd. 5.  [ADDITIONAL REVENUE USE.] If the board of a 
  7.31  district determines that the district has achieved and is 
  7.32  maintaining the instructor-to-learner ratios class sizes 
  7.33  specified in subdivision 4 and is using individualized learning 
  7.34  plans, the board may use the revenue to reduce class sizes in 
  7.35  grades 4 through 6, provide all-day, everyday kindergarten, 
  7.36  prepare and use individualized learning plans, improve program 
  8.1   offerings, purchase instructional material and, services, or 
  8.2   technology, or provide staff development needed for reduced 
  8.3   instructor-to-learner ratios.  If additional revenue remains, 
  8.4   the district must use the revenue to improve program offerings, 
  8.5   including programs provided through interactive television, 
  8.6   throughout the district or other general education 
  8.7   purposes class sizes. 
  8.8      Sec. 10.  Minnesota Statutes 1999 Supplement, section 
  8.9   126C.17, subdivision 9, is amended to read: 
  8.10     Subd. 9.  [REFERENDUM REVENUE.] (a) The revenue authorized 
  8.11  by section 126C.10, subdivision 1, may be increased in the 
  8.12  amount approved by the voters of the district at a referendum 
  8.13  called for the purpose.  The referendum may be called by the 
  8.14  board or shall be called by the board upon written petition of 
  8.15  qualified voters of the district.  The referendum must be 
  8.16  conducted one or two calendar years before the increased levy 
  8.17  authority, if approved, first becomes payable.  Only one 
  8.18  election to approve an increase may be held in a calendar year.  
  8.19  Unless the referendum is conducted by mail under paragraph (g), 
  8.20  the referendum must be held on the first Tuesday after the first 
  8.21  Monday in November.  The ballot must state the maximum amount of 
  8.22  the increased revenue per resident marginal cost pupil unit, the 
  8.23  estimated referendum tax rate as a percentage of referendum 
  8.24  market value in the first year it is to be levied, and that the 
  8.25  revenue must be used to finance school operations.  The ballot 
  8.26  may state a schedule, determined by the board, of increased 
  8.27  revenue per resident marginal cost pupil units unit that differs 
  8.28  from year to year over the number of years for which the 
  8.29  increased revenue is authorized.  If the ballot contains a 
  8.30  schedule showing different amounts, it must also indicate the 
  8.31  estimated referendum tax rate as a percent of referendum market 
  8.32  value for the amount specified for the first year and for the 
  8.33  maximum amount specified in the schedule.  The ballot may state 
  8.34  that existing referendum levy authority is expiring.  In this 
  8.35  case, the ballot may also compare the proposed levy authority to 
  8.36  the existing expiring levy authority, and express the proposed 
  9.1   increase as the amount, if any, over the expiring referendum 
  9.2   levy authority.  The ballot must designate the specific number 
  9.3   of years, not to exceed ten, for which the referendum 
  9.4   authorization applies.  The notice required under section 275.60 
  9.5   may be modified to read, in cases of renewing existing levies: 
  9.6      "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
  9.7      FOR A PROPERTY TAX INCREASE." 
  9.8      The ballot may contain a textual portion with the 
  9.9   information required in this subdivision and a question stating 
  9.10  substantially the following:  
  9.11     "Shall the increase in the revenue proposed by (petition 
  9.12  to) the board of ........., School District No. .., be approved?"
  9.13     If approved, an amount equal to the approved revenue per 
  9.14  resident marginal cost pupil unit times the resident marginal 
  9.15  cost pupil units for the school year beginning in the year after 
  9.16  the levy is certified shall be authorized for certification for 
  9.17  the number of years approved, if applicable, or until revoked or 
  9.18  reduced by the voters of the district at a subsequent referendum.
  9.19     (b) The board must prepare and deliver by first class mail 
  9.20  at least 15 days but no more than 30 days before the day of the 
  9.21  referendum to each taxpayer a notice of the referendum and the 
  9.22  proposed revenue increase.  The board need not mail more than 
  9.23  one notice to any taxpayer.  For the purpose of giving mailed 
  9.24  notice under this subdivision, owners must be those shown to be 
  9.25  owners on the records of the county auditor or, in any county 
  9.26  where tax statements are mailed by the county treasurer, on the 
  9.27  records of the county treasurer.  Every property owner whose 
  9.28  name does not appear on the records of the county auditor or the 
  9.29  county treasurer is deemed to have waived this mailed notice 
  9.30  unless the owner has requested in writing that the county 
  9.31  auditor or county treasurer, as the case may be, include the 
  9.32  name on the records for this purpose.  The notice must project 
  9.33  the anticipated amount of tax increase in annual dollars and 
  9.34  annual percentage for typical residential homesteads, 
  9.35  agricultural homesteads, apartments, and commercial-industrial 
  9.36  property within the school district. 
 10.1      The notice for a referendum may state that an existing 
 10.2   referendum levy is expiring and project the anticipated amount 
 10.3   of increase over the existing referendum levy in the first year, 
 10.4   if any, in annual dollars and annual percentage for typical 
 10.5   residential homesteads, agricultural homesteads, apartments, and 
 10.6   commercial-industrial property within the district. 
 10.7      The notice must include the following statement:  "Passage 
 10.8   of this referendum will result in an increase in your property 
 10.9   taxes."  However, in cases of renewing existing levies, the 
 10.10  notice may include the following statement:  "Passage of this 
 10.11  referendum may result in an increase in your property taxes." 
 10.12     (c) A referendum on the question of revoking or reducing 
 10.13  the increased revenue amount authorized pursuant to paragraph 
 10.14  (a) may be called by the board and shall be called by the board 
 10.15  upon the written petition of qualified voters of the district.  
 10.16  A referendum to revoke or reduce the levy amount must be based 
 10.17  upon the dollar amount, local tax rate, or amount per resident 
 10.18  marginal cost pupil unit, that was stated to be the basis for 
 10.19  the initial authorization.  Revenue approved by the voters of 
 10.20  the district pursuant to paragraph (a) must be received at least 
 10.21  once before it is subject to a referendum on its revocation or 
 10.22  reduction for subsequent years.  Only one revocation or 
 10.23  reduction referendum may be held to revoke or reduce referendum 
 10.24  revenue for any specific year and for years thereafter. 
 10.25     (d) A petition authorized by paragraph (a) or (c) is 
 10.26  effective if signed by a number of qualified voters in excess of 
 10.27  15 percent of the registered voters of the district on the day 
 10.28  the petition is filed with the board.  A referendum invoked by 
 10.29  petition must be held on the date specified in paragraph (a). 
 10.30     (e) The approval of 50 percent plus one of those voting on 
 10.31  the question is required to pass a referendum authorized by this 
 10.32  subdivision. 
 10.33     (f) At least 15 days before the day of the referendum, the 
 10.34  district must submit a copy of the notice required under 
 10.35  paragraph (b) to the commissioner and to the county auditor of 
 10.36  each county in which the district is located.  Within 15 days 
 11.1   after the results of the referendum have been certified by the 
 11.2   board, or in the case of a recount, the certification of the 
 11.3   results of the recount by the canvassing board, the district 
 11.4   must notify the commissioner of the results of the referendum. 
 11.5      (g) Except for a referendum held under subdivision 11, any 
 11.6   referendum under this section held on a day other than the first 
 11.7   Tuesday after the first Monday in November must be conducted by 
 11.8   mail in accordance with section 204B.46.  Notwithstanding 
 11.9   paragraph (b) to the contrary, in the case of a referendum 
 11.10  conducted by mail under this paragraph, the notice required by 
 11.11  paragraph (b) must be prepared and delivered by first class mail 
 11.12  at least 20 days before the referendum. 
 11.13     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
 11.14  127A.51, is amended to read: 
 11.15     127A.51 [STATEWIDE AVERAGE REVENUE.] 
 11.16     By October 1 of each year the commissioner must estimate 
 11.17  the statewide average adjusted general revenue per adjusted 
 11.18  marginal cost pupil unit and the disparity in adjusted general 
 11.19  revenue among pupils and districts by computing the ratio of the 
 11.20  ninety-fifth percentile to the fifth percentile of adjusted 
 11.21  general revenue.  The commissioner must provide that information 
 11.22  to all districts. 
 11.23     If the disparity in adjusted general revenue as measured by 
 11.24  the ratio of the ninety-fifth percentile to the fifth percentile 
 11.25  increases in any year, the commissioner shall recommend to the 
 11.26  legislature options for change in the general education formula 
 11.27  that will limit the disparity in adjusted general revenue to no 
 11.28  more than the disparity for the previous school year.  The 
 11.29  commissioner must submit the recommended options to the 
 11.30  education committees of the legislature by January 15. 
 11.31     For purposes of this section and section 126C.10, adjusted 
 11.32  general revenue means the sum of basic revenue under section 
 11.33  126C.10, subdivision 2; supplemental revenue under section 
 11.34  126C.10, subdivisions 9 and 12; transition revenue under section 
 11.35  126C.10, subdivision 20; and referendum revenue under section 
 11.36  126C.17. 
 12.1      Sec. 12.  [REPEALER.] 
 12.2      Minnesota Statutes 1998, sections 126C.30; 126C.31; 
 12.3   126C.32; 126C.33; 126C.34; 126C.35; and 126C.36, are repealed. 
 12.4                              ARTICLE 2 
 12.5                           SPECIAL PROGRAMS 
 12.6      Section 1.  Minnesota Statutes 1999 Supplement, section 
 12.7   124D.84, subdivision 1, is amended to read: 
 12.8      Subdivision 1.  [AWARDS.] The commissioner, with the advice 
 12.9   and counsel of the Minnesota Indian scholarship committee, may 
 12.10  award scholarships to any Minnesota resident student who is of 
 12.11  one-fourth or more Indian ancestry, who has applied for other 
 12.12  existing state and federal scholarship and grant programs, and 
 12.13  who, in the opinion of the commissioner, has the capabilities to 
 12.14  benefit from further education.  Scholarships must be 
 12.15  for advanced or specialized education accredited degree programs 
 12.16  in accredited colleges or universities or for courses in 
 12.17  accredited or approved colleges or in business, technical or 
 12.18  vocational schools.  Scholarships shall be used to defray the 
 12.19  total cost of education including tuition, incidental fees, 
 12.20  books, supplies, transportation, other related school costs and 
 12.21  the cost of board and room and shall be paid directly to the 
 12.22  college or school concerned.  The total cost of education 
 12.23  includes all tuition and fees for each student enrolling in a 
 12.24  public institution and the portion of tuition and fees for each 
 12.25  student enrolling in a private institution that does not exceed 
 12.26  the tuition and fees at a comparable public institution.  Each 
 12.27  student shall be awarded a scholarship based on the total cost 
 12.28  of the student's education and a standardized need analysis.  
 12.29  The amount and type of each scholarship shall be determined 
 12.30  through the advice and counsel of the Minnesota Indian 
 12.31  scholarship committee.  
 12.32     When an Indian student satisfactorily completes the work 
 12.33  required by a certain college or school in a school year the 
 12.34  student is eligible for additional scholarships, if additional 
 12.35  training is necessary to reach the student's educational and 
 12.36  vocational objective.  Scholarships may not be given to any 
 13.1   Indian student for more than five years of study without special 
 13.2   approval of the Minnesota Indian scholarship committee.  
 13.3      Sec. 2.  Minnesota Statutes 1998, section 124D.892, 
 13.4   subdivision 3, is amended to read: 
 13.5      Subd. 3.  [ADVISORY BOARD.] The commissioner shall 
 13.6   establish an advisory board composed of: 
 13.7      (1) eight superintendents, each of whom shall be selected 
 13.8   by the superintendents of the school districts located in whole 
 13.9   or in part within each of the eight metropolitan districts 
 13.10  established under section 473.123, subdivision 3c; and 
 13.11     (2) one person each selected by the Indian affairs council, 
 13.12  the council on Asian-Pacific Minnesotans, the council on Black 
 13.13  Minnesotans, and the council on affairs of Chicano/Latino 
 13.14  people; and 
 13.15     (3) the superintendent of independent school district No. 
 13.16  709, Duluth. 
 13.17     The advisory board shall advise the office on complying 
 13.18  with the requirements under subdivision 1.  The advisory board 
 13.19  may solicit comments from teachers, parents, students, and 
 13.20  interested community organizations and others. 
 13.21     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 13.22  125A.51, is amended to read: 
 13.23     125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
 13.24  EDUCATION AND TRANSPORTATION.] 
 13.25     The responsibility for providing instruction and 
 13.26  transportation for a pupil without a disability who has a 
 13.27  short-term or temporary physical or emotional illness or 
 13.28  disability, as determined by the standards of the commissioner, 
 13.29  and who is temporarily placed for care and treatment for that 
 13.30  illness or disability, must be determined as provided in this 
 13.31  section.  
 13.32     (a) The school district of residence of the pupil is the 
 13.33  district in which the pupil's parent or guardian resides. 
 13.34     (b) When parental rights have been terminated by court 
 13.35  order, the legal residence of a child placed in a residential or 
 13.36  foster facility for care and treatment is the district in which 
 14.1   the child resides when parental rights have been terminated. 
 14.2      (c) Before the placement of a pupil for care and treatment, 
 14.3   the district of residence must be notified and provided an 
 14.4   opportunity to participate in the placement decision.  When an 
 14.5   immediate emergency placement is necessary and time does not 
 14.6   permit resident district participation in the placement 
 14.7   decision, the district in which the pupil is temporarily placed, 
 14.8   if different from the district of residence, must notify the 
 14.9   district of residence of the emergency placement within 15 days 
 14.10  of the placement.  
 14.11     (d) When a pupil without a disability is temporarily placed 
 14.12  for care and treatment in a day program and the pupil continues 
 14.13  to live within the district of residence during the care and 
 14.14  treatment, the district of residence must provide instruction 
 14.15  and necessary transportation to and from the treatment facility 
 14.16  for the pupil.  Transportation shall only be provided by the 
 14.17  district during regular operating hours of the district.  The 
 14.18  district may provide the instruction at a school within the 
 14.19  district of residence, at the pupil's residence, or in the case 
 14.20  of a placement outside of the resident district, in the district 
 14.21  in which the day treatment program is located by paying tuition 
 14.22  to that district.  The district of placement may contract with a 
 14.23  facility to provide instruction by teachers licensed by the 
 14.24  state board of teaching.  
 14.25     (e) When a pupil without a disability is temporarily placed 
 14.26  in a residential program for care and treatment, the district in 
 14.27  which the pupil is placed must provide instruction for the pupil 
 14.28  and necessary transportation while the pupil is receiving 
 14.29  instruction, and in the case of a placement outside of the 
 14.30  district of residence, the nonresident district must bill the 
 14.31  district of residence for the actual cost of providing the 
 14.32  instruction for the regular school year and for summer school, 
 14.33  excluding transportation costs.  When a pupil without a 
 14.34  disability is temporarily placed in a residential program 
 14.35  outside the district of residence, the administrator of the 
 14.36  court placing the pupil must send timely written notice of the 
 15.1   placement to the district of residence.  The district of 
 15.2   placement may contract with a residential facility to provide 
 15.3   instruction by teachers licensed by the state board of teaching. 
 15.4   For purposes of this section, the state correctional facilities 
 15.5   operated on a fee-for-service basis are considered to be 
 15.6   residential programs for care and treatment. 
 15.7      (f) The district of residence must include the pupil in its 
 15.8   residence count of pupil units and pay tuition as provided in 
 15.9   section 123A.488 to the district providing the instruction.  
 15.10  Transportation costs must be paid by the district providing the 
 15.11  transportation and the state must pay transportation aid to that 
 15.12  district.  For purposes of computing state transportation aid, 
 15.13  pupils governed by this subdivision must be included in the 
 15.14  disabled transportation category.  
 15.15     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 15.16  127A.42, subdivision 3, is amended to read: 
 15.17     Subd. 3.  [ASSURANCE OF COMPLIANCE.] (a) After consultation 
 15.18  with the commissioner of human rights, the commissioner of 
 15.19  children, families, and learning shall adopt rules in 
 15.20  conformance with chapter 14.  The rules must direct districts to 
 15.21  file with the commissioner of children, families, and learning 
 15.22  assurances of compliance with state and federal laws prohibiting 
 15.23  discrimination and specify the information required to be 
 15.24  submitted in support of the assurances.  The commissioner shall 
 15.25  provide copies of the assurances and the supportive information 
 15.26  to the commissioner of human rights The assurances must be 
 15.27  provided in a form and manner prescribed by the commissioner.  
 15.28     (b) If, after reviewing the assurances and the supportive 
 15.29  information it appears that one or more violations of the 
 15.30  Minnesota Human Rights Act are occurring in the a district, the 
 15.31  commissioner of human rights shall notify the commissioner of 
 15.32  the violations, and the commissioner of children, families, and 
 15.33  learning may then proceed pursuant to subdivision 4. 
 15.34     Sec. 5.  Laws 1999, chapter 241, article 2, section 60, 
 15.35  subdivision 9, is amended to read: 
 15.36     Subd. 9.  [MAGNET SCHOOL GRANTS.] For magnet school and 
 16.1   program grants under Laws 1994, chapter 647, article 8, section 
 16.2   38: 
 16.3        $1,750,000     .....     2000 
 16.4        $1,750,000     .....     2001 
 16.5      These amounts may be used for magnet school programs 
 16.6   according to Minnesota Statutes, section 124D.88.  
 16.7      Sec. 6.  [REPEALER.] 
 16.8      Minnesota Rules, part 3535.9920, is repealed.  
 16.9                              ARTICLE 3
 16.10                        LIFEWORK DEVELOPMENT 
 16.11     Section 1.  Minnesota Statutes 1998, section 124D.454, 
 16.12  subdivision 4, is amended to read: 
 16.13     Subd. 4.  [ADJUSTED SECONDARY 
 16.14  VOCATIONAL-DISABLED TRANSITION-DISABLED BASE REVENUE.] For 
 16.15  fiscal year 1996 and later, a district's adjusted secondary 
 16.16  vocational-disabled transition-disabled base revenue equals the 
 16.17  district's secondary vocational-disabled transition-disabled 
 16.18  base revenue times the ratio of the district's average daily 
 16.19  membership for the current school year to the district's average 
 16.20  daily membership for the base year. 
 16.21     Sec. 2.  Minnesota Statutes 1998, section 124D.454, 
 16.22  subdivision 6, is amended to read: 
 16.23     Subd. 6.  [SCHOOL DISTRICT SECONDARY 
 16.24  VOCATIONAL-DISABLED TRANSITION-DISABLED REVENUE.] (a) A school 
 16.25  district's secondary vocational-disabled transition-disabled 
 16.26  revenue for fiscal year 1996 and later equals the state 
 16.27  total secondary vocational-disabled transition-disabled revenue, 
 16.28  minus the amount determined under paragraph (b), times the ratio 
 16.29  of the district's adjusted secondary 
 16.30  vocational-disabled transition-disabled base revenue to the 
 16.31  state total adjusted secondary 
 16.32  vocational-disabled transition-disabled base revenue. 
 16.33     (b) Notwithstanding paragraph (a), if the secondary 
 16.34  vocational-disabled transition-disabled base revenue for a 
 16.35  district equals zero and no district residents were enrolled 
 16.36  in secondary vocational-disabled transition-disabled programs 
 17.1   during the base year, the secondary 
 17.2   vocational-disabled transition-disabled revenue equals the 
 17.3   amount computed according to subdivision 3 using current year 
 17.4   data. 
 17.5      Sec. 3.  Minnesota Statutes 1998, section 124D.454, 
 17.6   subdivision 7, is amended to read: 
 17.7      Subd. 7.  [SCHOOL DISTRICT SECONDARY 
 17.8   VOCATIONAL-DISABLED TRANSITION-DISABLED AID.] A school 
 17.9   district's secondary vocational-disabled transition-disabled aid 
 17.10  for fiscal year 1996 and later equals the district's secondary 
 17.11  vocational-disabled transition-disabled revenue times the aid 
 17.12  percentage factor for that year. 
 17.13     Sec. 4.  Laws 1999, chapter 241, article 3, section 3, 
 17.14  subdivision 4, is amended to read: 
 17.15     Subd. 4.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
 17.16  GRANTS.] For education and employment transitions programming 
 17.17  under Minnesota Statutes, section 124D.46: 
 17.18       $3,225,000     .....     2000 
 17.19       $3,225,000     .....     2001 
 17.20     $200,000 each year is for the development and 
 17.21  implementation of the ISEEK Internet-based education and 
 17.22  employment information system. 
 17.23     $1,000,000 each year is for an employer rebate program for 
 17.24  qualifying employers who offer youth internships to educators. 
 17.25     $500,000 each year is for youth entrepreneurship grants.  
 17.26     $750,000 each year is for youth apprenticeship grants. 
 17.27     $300,000 each year is for grants to programs in cities of 
 17.28  the first class to expand the number of at-risk students 
 17.29  participating in school-to-work projects. 
 17.30     $350,000 each year is for agricultural school-to-work 
 17.31  grants. 
 17.32     $125,000 each year is to conduct a high school follow-up 
 17.33  survey to include first, third, and sixth year graduates of 
 17.34  Minnesota schools. 
 17.35     Any balance in the first year does not cancel but is 
 17.36  available in the second year.  
 18.1                              ARTICLE 4 
 18.2                      FACILITIES AND TECHNOLOGY 
 18.3      Section 1.  Minnesota Statutes 1998, section 123B.51, 
 18.4   subdivision 6, is amended to read: 
 18.5      Subd. 6.  [PROCEEDS OF SALE OR EXCHANGE.] (a) Proceeds of 
 18.6   the sale or exchange of school buildings or real property of the 
 18.7   district must be used as provided in this subdivision. 
 18.8      (b) In districts with outstanding bonds, the proceeds of 
 18.9   the sale or exchange shall first be deposited in the debt 
 18.10  retirement fund of the district in an amount sufficient to meet 
 18.11  when due that percentage of the principal and interest payments 
 18.12  for outstanding bonds which is ascribable to the payment of 
 18.13  expenses necessary and incidental to the construction or 
 18.14  purchase of the particular building or property which is sold.  
 18.15     (c) After satisfying the requirements of paragraph (b), a 
 18.16  district with outstanding bonds may deposit proceeds of the sale 
 18.17  or exchange in its capital expenditure fund general fund 
 18.18  reserved for operating capital account if the amount deposited 
 18.19  is used for the following:  
 18.20     (1) for expenditures for the cleanup of polychlorinated 
 18.21  biphenyls, if the method for cleanup is approved by the 
 18.22  department; 
 18.23     (2) for capital expenditures for the betterment, as defined 
 18.24  in section 475.51, subdivision 8, of district-owned school 
 18.25  buildings; or 
 18.26     (3) to replace the building or property sold.  
 18.27     (d) In a district with outstanding bonds, the amount of the 
 18.28  proceeds of the sale or exchange remaining after the application 
 18.29  of paragraphs (b) and (c), which is sufficient to meet when due 
 18.30  that percentage of the principal and interest payments for the 
 18.31  district's outstanding bonds which is not governed by paragraph 
 18.32  (b), shall be deposited in the debt retirement fund.  
 18.33     (e) Any proceeds of the sale or exchange remaining in 
 18.34  districts with outstanding bonds after the application of 
 18.35  paragraphs (b), (c), and (d), and all proceeds of the sale or 
 18.36  exchange in districts without outstanding bonds shall be 
 19.1   deposited in the capital expenditure general fund reserved for 
 19.2   operating capital account of the district. 
 19.3      (f) Notwithstanding paragraphs (c) and (d), a district with 
 19.4   outstanding bonds may deposit in its capital expenditure general 
 19.5   fund reserved for operating capital account and use for any 
 19.6   lawful operating capital expenditure without the reduction of 
 19.7   any levy limitation the same percentage of the proceeds of the 
 19.8   sale or exchange of a building or property as the percentage of 
 19.9   the initial cost of purchasing or constructing the building or 
 19.10  property which was paid using revenue from the capital 
 19.11  expenditure general fund reserved for operating capital account. 
 19.12                             ARTICLE 5 
 19.13                        EDUCATION EXCELLENCE 
 19.14     Section 1.  Minnesota Statutes 1999 Supplement, section 
 19.15  124D.10, subdivision 3, is amended to read: 
 19.16     Subd. 3.  [SPONSOR.] A school board,; intermediate school 
 19.17  district school board,; education districts district organized 
 19.18  under sections 123A.15 to 123A.19,; Minnesota private college, 
 19.19  registered with the higher education services office under 
 19.20  chapter 136A as a school approved to grant two- or four-year 
 19.21  degrees; community college, state university, or technical 
 19.22  college, governed by the board of trustees of the Minnesota 
 19.23  state colleges and universities; or the University of Minnesota 
 19.24  may sponsor one or more charter schools. 
 19.25     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 19.26  124D.10, subdivision 4, is amended to read: 
 19.27     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
 19.28  authorize one or more licensed teachers under section 122A.18, 
 19.29  subdivision 1, to operate a charter school subject to approval 
 19.30  by the commissioner.  A school board or a board designated by a 
 19.31  higher education institution must vote on charter school 
 19.32  application for sponsorship no later than 90 days after 
 19.33  receiving the application.  After 90 days, the applicant may 
 19.34  apply to the commissioner.  If a school board or a board 
 19.35  designated by a higher education institution elects not to 
 19.36  sponsor a charter school, the applicant may appeal the board's 
 20.1   decision to the commissioner.  If the commissioner authorizes 
 20.2   the school, the commissioner must sponsor the school according 
 20.3   to this section.  The school must be organized and operated as a 
 20.4   cooperative under chapter 308A or nonprofit corporation under 
 20.5   chapter 317A.  
 20.6      (b) Before the operators may form and operate a school, the 
 20.7   sponsor must file an affidavit with the commissioner stating its 
 20.8   intent to authorize a charter school.  The affidavit must state 
 20.9   the terms and conditions under which the sponsor would authorize 
 20.10  a charter school.  The commissioner must approve or disapprove 
 20.11  the sponsor's proposed authorization within 60 days of receipt 
 20.12  of the affidavit.  The charter school developers must submit 
 20.13  their charter school proposal and affidavit to the commissioner 
 20.14  by October 1 prior to the initial school year of operation.  The 
 20.15  commissioner shall organize and facilitate an orderly review of 
 20.16  the charter proposals.  The commissioner shall complete the 
 20.17  review and grant new charters by January 15.  The commissioner 
 20.18  may appoint a review committee to assist in the review process.  
 20.19  The committee may review applications and participate in 
 20.20  interviews with applicants.  The committee's role shall be 
 20.21  solely advisory.  Failure to obtain commissioner approval 
 20.22  precludes a sponsor from authorizing the charter school that was 
 20.23  the subject of the affidavit.  
 20.24     (c) The operators authorized to organize and operate a 
 20.25  school must hold an election for members of the school's board 
 20.26  of directors in a timely manner after the school is operating.  
 20.27  Any staff members who are employed at the school, including 
 20.28  teachers providing instruction under a contract with a 
 20.29  cooperative, and all parents of children enrolled in the school 
 20.30  may participate in the election.  Licensed teachers employed at 
 20.31  the school, including teachers providing instruction under a 
 20.32  contract with a cooperative, must be a majority of the members 
 20.33  of the board of directors, unless the commissioner waives the 
 20.34  requirement for the school.  A provisional board may operate 
 20.35  before the election of the school's board of directors.  Board 
 20.36  of director meetings must comply with section 471.705. 
 21.1      (d) The granting or renewal of a charter by a sponsoring 
 21.2   entity must not be conditioned upon the bargaining unit status 
 21.3   of the employees of the school.  
 21.4      Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 21.5   124D.10, subdivision 8, is amended to read: 
 21.6      Subd. 8.  [STATE AND LOCAL REQUIREMENTS.] (a) A charter 
 21.7   school shall meet all applicable state and local health and 
 21.8   safety requirements. 
 21.9      (b) A school sponsored by a school board may be located in 
 21.10  any district, unless the school board of the district of the 
 21.11  proposed location disapproves by written resolution.  If such a 
 21.12  board denies a request to locate within its boundaries a charter 
 21.13  school sponsored by another school board, the sponsoring school 
 21.14  board may appeal to the commissioner.  If the commissioner 
 21.15  authorizes the school, the commissioner must sponsor the school. 
 21.16     (c) A charter school must be nonsectarian in its programs, 
 21.17  admission policies, employment practices, and all other 
 21.18  operations.  A sponsor may not authorize a charter school or 
 21.19  program that is affiliated with a nonpublic sectarian school or 
 21.20  a religious institution. 
 21.21     (d) Charter schools must not be used as a method of 
 21.22  providing education or generating revenue for students who are 
 21.23  being home-schooled. 
 21.24     (e) The primary focus of a charter school must be to 
 21.25  provide a comprehensive program of instruction for at least one 
 21.26  grade or age group from five through 18 years of age.  
 21.27  Instruction may be provided to people younger than five years 
 21.28  and older than 18 years of age. 
 21.29     (f) A charter school may not charge tuition. 
 21.30     (g) A charter school is subject to and must comply with 
 21.31  chapter 363 and section 121A.04. 
 21.32     (h) A charter school is subject to and must comply with The 
 21.33  Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 
 21.34  Minnesota Public School Fee law, sections 123B.34 to 123B.39. 
 21.35     (i) A charter school is subject to the same financial 
 21.36  audits, audit procedures, and audit requirements as a district 
 22.1   unless otherwise specified in statute.  The audit charter school 
 22.2   must be consistent in compliance with the requirements of 
 22.3   sections 123B.75 to 123B.83, except to the extent deviations are 
 22.4   necessary because of the program at the school.  The department 
 22.5   of children, families, and learning, state auditor, or 
 22.6   legislative auditor may conduct financial, program, or 
 22.7   compliance audits. 
 22.8      (j) A charter school is a district for the purposes of tort 
 22.9   liability under chapter 466. 
 22.10     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 22.11  124D.10, subdivision 11, is amended to read: 
 22.12     Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 
 22.13  charter school must employ or contract with necessary teachers, 
 22.14  as defined by section 122A.15, subdivision 1, who hold valid 
 22.15  licenses to perform the particular service for which they are 
 22.16  employed in the school.  The charter school's state aid may be 
 22.17  reduced under section 127A.42 if the school employs a teacher 
 22.18  who is not appropriately licensed or approved by the board of 
 22.19  teaching.  The school may employ necessary employees who are not 
 22.20  required to hold teaching licenses to perform duties other than 
 22.21  teaching and may contract for other services.  The school may 
 22.22  discharge teachers and nonlicensed employees.  A person, without 
 22.23  holding a valid administrator's license, may perform 
 22.24  administrative, supervisory, or instructional leadership duties. 
 22.25     The board of directors also shall decide matters related to 
 22.26  the operation of the school, including budgeting, curriculum and 
 22.27  operating procedures.  
 22.28     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
 22.29  124D.10, subdivision 23, is amended to read: 
 22.30     Subd. 23.  [CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER 
 22.31  SCHOOL CONTRACT.] (a) The duration of the contract with a 
 22.32  sponsor must be for the term contained in the contract according 
 22.33  to subdivision 6.  The sponsor may or may not renew a contract 
 22.34  at the end of the term for any ground listed in paragraph (b).  
 22.35  A sponsor may unilaterally terminate a contract during the term 
 22.36  of the contract for any ground listed in paragraph (b).  At 
 23.1   least 60 days before not renewing or terminating a contract, the 
 23.2   sponsor shall notify the board of directors of the charter 
 23.3   school of the proposed action in writing.  The notice shall 
 23.4   state the grounds for the proposed action in reasonable detail 
 23.5   and that the charter school's board of directors may request in 
 23.6   writing an informal hearing before the sponsor within 14 days of 
 23.7   receiving notice of nonrenewal or termination of the contract.  
 23.8   Failure by the board of directors to make a written request for 
 23.9   a hearing within the 14-day period shall be treated as 
 23.10  acquiescence to the proposed action.  Upon receiving a timely 
 23.11  written request for a hearing, the sponsor shall give reasonable 
 23.12  notice to the charter school's board of directors of the hearing 
 23.13  date.  The sponsor shall conduct an informal hearing before 
 23.14  taking final action.  The sponsor shall take final action to 
 23.15  renew or not renew a contract by the last day of classes in the 
 23.16  school year.  If the sponsor is a local board, the school's 
 23.17  board of directors may appeal the sponsor's decision to the 
 23.18  commissioner. 
 23.19     (b) A contract may be terminated or not renewed upon any of 
 23.20  the following grounds: 
 23.21     (1) failure to meet the requirements for pupil performance 
 23.22  contained in the contract; 
 23.23     (2) failure to meet generally accepted standards of fiscal 
 23.24  management; 
 23.25     (3) violations of law; or 
 23.26     (4) other good cause shown. 
 23.27     If a contract is terminated or not renewed, the school must 
 23.28  be dissolved according to the applicable provisions of chapter 
 23.29  308A or 317A, except when the commissioner approves a different 
 23.30  eligible sponsor's intent to authorize the charter school.  
 23.31     (c) The commissioner, after providing reasonable notice to 
 23.32  the governing body of a charter school and the existing sponsor, 
 23.33  and after providing an opportunity for a public hearing, may 
 23.34  terminate the existing sponsorial relationship if the sponsor is 
 23.35  failing to meet its statutory obligations to: 
 23.36     (1) monitor the pupil performance requirements contained in 
 24.1   the contract; 
 24.2      (2) monitor the fiscal management of the charter school; or 
 24.3      (3) monitor for and respond to violations of the law. 
 24.4      Sec. 6.  Minnesota Statutes 1999 Supplement, section 
 24.5   124D.11, subdivision 4, is amended to read: 
 24.6      Subd. 4.  [BUILDING LEASE AID.] When a charter school finds 
 24.7   it economically advantageous to rent or lease a building or land 
 24.8   for any instructional purposes and it determines that the total 
 24.9   operating capital revenue under section 126C.10, subdivision 13, 
 24.10  is insufficient for this purpose, it may apply to the 
 24.11  commissioner for building lease aid for this purpose.  Criteria 
 24.12  for aid approval and revenue uses shall be as defined for the 
 24.13  building lease levy in section 126C.40, subdivision 1, 
 24.14  paragraphs (a) and (b).  Buildings leased by charter schools 
 24.15  must meet all local and state school building codes, state 
 24.16  health and safety requirements, and federal American Disability 
 24.17  Act requirements and the charter school must demonstrate 
 24.18  building compliance with these requirements to the 
 24.19  commissioner.  The amount of building lease aid per pupil unit 
 24.20  served for a charter school for any year shall not exceed the 
 24.21  lesser of (a) 90 percent of the approved cost or (b) the product 
 24.22  of the pupil units served for the current school year times 
 24.23  $1,500.  Existing charter schools must apply by January 15 to be 
 24.24  considered for this program. 
 24.25     Sec. 7.  Minnesota Statutes 1999 Supplement, section 
 24.26  124D.11, subdivision 6, is amended to read: 
 24.27     Subd. 6.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
 24.28  school is eligible to receive other aids, grants, and revenue 
 24.29  according to chapters 120A to 129C, as though it were a district.
 24.30     (b) Notwithstanding paragraph (a), a charter school may not 
 24.31  receive aid, a grant, or revenue if a levy is required to obtain 
 24.32  the money, except as otherwise provided in this section.  
 24.33     (c) Federal aid received by the state must be paid to the 
 24.34  school, if it qualifies for the aid as though it were a school 
 24.35  district. 
 24.36     (d) A charter school may receive money from any source for 
 25.1   capital facilities needs.  In the year-end report to the 
 25.2   commissioner of children, families, and learning, the charter 
 25.3   school shall report the total amount of funds received from 
 25.4   grants and other outside sources. 
 25.5      (e) Notwithstanding paragraph (a) or (b), a charter school 
 25.6   is may apply for a grant to be eligible to receive the aid 
 25.7   portion of integration revenue under section 124D.86, 
 25.8   subdivision 3, for enrolled students who are residents of a 
 25.9   district that is eligible for integration revenue if the 
 25.10  enrollment of the pupil in the charter school contributes to 
 25.11  desegregation or integration purposes.  The commissioner shall 
 25.12  determine grant recipients and may adopt application 
 25.13  guidelines.  The grants must be competitively determined and 
 25.14  must demonstrate that the enrollment of pupils in the charter 
 25.15  school contributes to desegregation or integration purposes as 
 25.16  determined by the commissioner.  If the charter school has 
 25.17  elected not to provide transportation under section 124D.10, 
 25.18  subdivision 16, the aid shall be reduced by the amount per pupil 
 25.19  unit specified for the district where the charter school is 
 25.20  located under section 123B.92, subdivision 8. 
 25.21     Sec. 8.  Laws 1999, chapter 241, article 5, section 18, 
 25.22  subdivision 6, is amended to read: 
 25.23     Subd. 6.  [CHARTER SCHOOL START-UP GRANTS.] For charter 
 25.24  school start-up cost aid under Minnesota Statutes, section 
 25.25  124D.11: 
 25.26       $1,789,000     .....     2000 
 25.27       $1,876,000     .....     2001 
 25.28     The 2000 appropriation includes $100,000 for 1999 and 
 25.29  $1,689,000 for 2000. 
 25.30     The 2001 appropriation includes $188,000 for 1999 2000 and 
 25.31  $1,688,000 for 2001. 
 25.32     Any balance in the first year does not cancel but is 
 25.33  available in the second year.  This appropriation may also be 
 25.34  used for grants to convert existing schools into charter schools.
 25.35                             ARTICLE 6 
 25.36                           OTHER PROGRAMS 
 26.1      Section 1.  Minnesota Statutes 1998, section 120B.13, 
 26.2   subdivision 4, is amended to read: 
 26.3      Subd. 4.  [INFORMATION.] The commissioner shall submit the 
 26.4   following information to the education committees of the 
 26.5   legislature each year by January February 1: 
 26.6      (1) the number of pupils enrolled in advanced placement and 
 26.7   international baccalaureate courses in each school district; 
 26.8      (2) the number of teachers in each district attending 
 26.9   training programs offered by the college board or International 
 26.10  Baccalaureate North America, Inc.; 
 26.11     (3) the number of teachers in each district participating 
 26.12  in support programs; 
 26.13     (4) recent trends in the field of advanced placement and 
 26.14  international baccalaureate programs; 
 26.15     (5) expenditures for each category in this section; and 
 26.16     (6) other recommendations for the state program. 
 26.17                             ARTICLE 7 
 26.18                         NUTRITION PROGRAMS 
 26.19     Section 1.  Minnesota Statutes 1999 Supplement, section 
 26.20  124D.1155, subdivision 2, is amended to read: 
 26.21     Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
 26.22  public or nonpublic elementary school that participates in the 
 26.23  federal school breakfast and lunch programs.  The commissioner 
 26.24  must give first priority to schools where at least 33 percent of 
 26.25  the lunches the school served to children during the second 
 26.26  preceding school year were provided free or at a reduced price.  
 26.27  The commissioner must give second priority to all other public 
 26.28  or nonpublic elementary schools. 
 26.29                             ARTICLE 8 
 26.30                             LIBRARIES 
 26.31     Section 1.  Laws 1999, chapter 241, article 8, section 4, 
 26.32  subdivision 5, is amended to read: 
 26.33     Subd. 5.  [LIBRARY FOR THE BLIND.] For compact shelving, 
 26.34  technology, and staffing for the Minnesota library for the blind 
 26.35  and physically handicapped: 
 26.36       $212,000     .....     2000 
 27.1      This appropriation is available until June 30, 2001. 
 27.2                              ARTICLE 9 
 27.3                           EDUCATION POLICY 
 27.4      Section 1.  Minnesota Statutes 1999 Supplement, section 
 27.5   122A.09, subdivision 4, is amended to read: 
 27.6      Subd. 4.  [LICENSE AND RULES.] (a) The board must adopt 
 27.7   rules to license public school teachers and interns subject to 
 27.8   chapter 14. 
 27.9      (b) The board must adopt rules requiring a person to 
 27.10  successfully complete a skills examination in reading, writing, 
 27.11  and mathematics as a requirement for initial teacher licensure.  
 27.12  Such rules must require college and universities offering a 
 27.13  board approved teacher preparation program to provide remedial 
 27.14  assistance to persons who did not achieve a qualifying score on 
 27.15  the skills examination, including those for whom English is a 
 27.16  second language. 
 27.17     (c) The board must adopt rules to approve teacher 
 27.18  preparation programs.  The board, upon the request of a 
 27.19  post-secondary student preparing for teacher licensure or a 
 27.20  licensed graduate of a teacher preparation program, shall assist 
 27.21  in resolving a dispute between the person and a post-secondary 
 27.22  institution providing a teacher preparation program when the 
 27.23  dispute involves an institution's recommendation for licensure 
 27.24  affecting the person or the person's credentials.  At the 
 27.25  board's discretion, assistance may include the application of 
 27.26  chapter 14. 
 27.27     (d) The board must provide the leadership and shall adopt 
 27.28  rules for the redesign of teacher education programs to 
 27.29  implement a research based, results-oriented curriculum that 
 27.30  focuses on the skills teachers need in order to be effective.  
 27.31  The board shall implement new systems of teacher preparation 
 27.32  program evaluation to assure program effectiveness based on 
 27.33  proficiency of graduates in demonstrating attainment of program 
 27.34  outcomes. 
 27.35     (e) The board must adopt rules requiring successful 
 27.36  completion of an examination of general pedagogical knowledge 
 28.1   and examinations of licensure-specific teaching skills.  The 
 28.2   rules shall be effective on the dates determined by the board, 
 28.3   but not later than September 1, 2001. 
 28.4      (f) The board must adopt rules requiring teacher educators 
 28.5   to work directly with elementary or secondary school teachers in 
 28.6   elementary or secondary schools to obtain periodic exposure to 
 28.7   the elementary or secondary teaching environment. 
 28.8      (g) The board must grant licenses to interns and to 
 28.9   candidates for initial licenses. 
 28.10     (h) The board must design and implement an assessment 
 28.11  system which requires a candidate for an initial license and 
 28.12  first continuing license to demonstrate the abilities necessary 
 28.13  to perform selected, representative teaching tasks at 
 28.14  appropriate levels. 
 28.15     (i) The board must receive recommendations from local 
 28.16  committees as established by the board for the renewal of 
 28.17  teaching licenses. 
 28.18     (j) The board must grant life licenses to those who qualify 
 28.19  according to requirements established by the board, and suspend 
 28.20  or revoke licenses pursuant to sections 122A.20 and 214.10.  The 
 28.21  board must not establish any expiration date for application for 
 28.22  life licenses.  
 28.23     (k) The board must adopt rules that require all licensed 
 28.24  teachers who are renewing their continuing license to include in 
 28.25  their renewal requirements further preparation in the areas of 
 28.26  using positive behavior interventions and in accommodating, 
 28.27  modifying, and adapting curricula, materials, and strategies to 
 28.28  appropriately meet the needs of individual students and ensure 
 28.29  adequate progress toward the state's graduation rule.  The rules 
 28.30  adopted under this paragraph apply to teachers who renew their 
 28.31  licenses in year 2001 and later. 
 28.32     (l) In adopting rules to license public school teachers who 
 28.33  provide health-related services for disabled children, the board 
 28.34  shall adopt rules consistent with license or registration 
 28.35  requirements of the commissioner of health and the 
 28.36  health-related boards who license personnel who perform similar 
 29.1   services outside of the school. 
 29.2      (m) The board must adopt rules providing that a teacher who 
 29.3   has been fully licensed to teach in another state, but who does 
 29.4   not meet all Minnesota requirements for a similar Minnesota 
 29.5   teaching license, shall be granted a temporary Minnesota 
 29.6   teaching license for up to three years valid to teach subjects 
 29.7   and grade levels for which the teacher was licensed in the other 
 29.8   state upon submission of evidence that the teacher holds or has 
 29.9   held licensure in another state and that the license held is 
 29.10  based on the teacher's completing an approved teacher 
 29.11  preparation program including the Interstate New Teacher 
 29.12  Assessment and Support Consortium Standards. 
 29.13     Sec. 2.  Minnesota Statutes 1998, section 122A.25, is 
 29.14  amended by adding a subdivision to read: 
 29.15     Subd. 2a.  [BACKGROUND CHECK.] The school district or 
 29.16  charter school shall request a criminal history background check 
 29.17  under section 123B.03 on a hired nonlicensed community expert 
 29.18  and verify the completion of the criminal history background 
 29.19  check to the board of teaching. 
 29.20     Sec. 3.  Minnesota Statutes 1998, section 123B.143, 
 29.21  subdivision 1, is amended to read: 
 29.22     Subdivision 1.  [CONTRACT; DUTIES.] All districts 
 29.23  maintaining a classified secondary school must employ a 
 29.24  superintendent who shall be an ex officio nonvoting member of 
 29.25  the school board.  The authority for selection and employment of 
 29.26  a superintendent must be vested in the board in all cases.  An 
 29.27  individual employed by a board as a superintendent shall have an 
 29.28  initial employment contract for a period of time no longer than 
 29.29  three years from the date of employment.  Any subsequent 
 29.30  employment contract must not exceed a period of three years.  A 
 29.31  board, at its discretion, may or may not renew an employment 
 29.32  contract.  A board must not, by action or inaction, extend the 
 29.33  duration of an existing employment contract.  Beginning 365 days 
 29.34  prior to the expiration date of an existing employment contract, 
 29.35  a board may negotiate and enter into a subsequent employment 
 29.36  contract to take effect upon the expiration of the existing 
 30.1   contract.  A subsequent contract must be contingent upon the 
 30.2   employee completing the terms of an existing contract.  If a 
 30.3   contract between a board and a superintendent is terminated 
 30.4   prior to the date specified in the contract, the board may not 
 30.5   enter into another superintendent contract with that same 
 30.6   individual that has a term that extends beyond the date 
 30.7   specified in the terminated contract.  A board may terminate a 
 30.8   superintendent during the term of an employment contract for any 
 30.9   of the grounds specified in section 122A.40, subdivision 9 or 13.
 30.10  A superintendent shall not rely upon an employment contract with 
 30.11  a board to assert any other continuing contract rights in the 
 30.12  position of superintendent under section 122A.40.  
 30.13  Notwithstanding the provisions of sections 122A.40, subdivision 
 30.14  10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 
 30.15  individual shall have a right to employment as a superintendent 
 30.16  based on order of employment in any district.  If two or more 
 30.17  districts enter into an agreement for the purchase or sharing of 
 30.18  the services of a superintendent, the contracting districts have 
 30.19  the absolute right to select one of the individuals employed to 
 30.20  serve as superintendent in one of the contracting districts and 
 30.21  no individual has a right to employment as the superintendent to 
 30.22  provide all or part of the services based on order of employment 
 30.23  in a contracting district. The superintendent of a district 
 30.24  shall perform the following:  
 30.25     (1) visit and supervise the schools in the district, report 
 30.26  and make recommendations about their condition when advisable or 
 30.27  on request by the board; 
 30.28     (2) recommend to the board employment and dismissal of 
 30.29  teachers; 
 30.30     (3) superintend school grading practices and examinations 
 30.31  for promotions; 
 30.32     (4) make reports required by the commissioner; 
 30.33     (5) by January 10, submit an annual report to the 
 30.34  commissioner in a manner prescribed by the commissioner, in 
 30.35  consultation with school districts, identifying the expenditures 
 30.36  that the district requires to ensure an 80 percent and a 90 
 31.1   percent student passage rate on the basic standards test taken 
 31.2   in the eighth grade highest student passage rate the district 
 31.3   expects it will be able to attain on the basic standards test by 
 31.4   the 12th grade, identifying the amount of expenditures that the 
 31.5   district requires to ensure a 99 percent attain the targeted 
 31.6   student passage rate on the basic standards test by 12th grade, 
 31.7   and how much the district is cross-subsidizing programs with 
 31.8   special education, compensatory basic skills, and general 
 31.9   education revenue; and 
 31.10     (6) perform other duties prescribed by the board. 
 31.11     Sec. 4.  Minnesota Statutes 1998, section 123B.77, 
 31.12  subdivision 3, is amended to read: 
 31.13     Subd. 3.  [STATEMENT FOR COMPARISON AND CORRECTION.] By 
 31.14  November 30 of the calendar year of the submission of the 
 31.15  unaudited financial data, the district must provide to the 
 31.16  commissioner audited financial data for the preceding fiscal 
 31.17  year.  The audit must be conducted in compliance with generally 
 31.18  accepted governmental auditing standards, the federal Single 
 31.19  Audit Act, and the Minnesota legal compliance guide issued by 
 31.20  the office of the state auditor.  An audited financial statement 
 31.21  prepared in a form which will allow comparison with and 
 31.22  correction of material differences in the unaudited financial 
 31.23  data shall be submitted to the commissioner and the state 
 31.24  auditor by December 31.  The audited financial statement must 
 31.25  also provide a statement of assurance pertaining to uniform 
 31.26  financial accounting and reporting standards compliance and a 
 31.27  copy of the management letter submitted to the district by the 
 31.28  school district's auditor. 
 31.29     Sec. 5.  Minnesota Statutes 1998, section 123B.79, 
 31.30  subdivision 7, is amended to read: 
 31.31     Subd. 7.  [ACCOUNT TRANSFER FOR CERTAIN SEVERANCE PAY.] A 
 31.32  district may maintain in a designated reserve for certain 
 31.33  severance pay account not more than 50 percent of the amount 
 31.34  necessary to meet the obligations for the portion of severance 
 31.35  pay that constitutes compensation for accumulated sick leave to 
 31.36  be used for payment of premiums for group insurance provided for 
 32.1   former employees by the district.  The amount necessary must be 
 32.2   calculated according to standards established by the advisory 
 32.3   council on uniform financial accounting and reporting 
 32.4   standards department. 
 32.5      Sec. 6.  Minnesota Statutes 1999 Supplement, section 
 32.6   123B.83, subdivision 4, is amended to read: 
 32.7      Subd. 4.  [SPECIAL OPERATING PLAN.] (1) If the net negative 
 32.8   unappropriated operating unreserved general fund balance as 
 32.9   defined in section 126C.01, subdivision 11, calculated in 
 32.10  accordance with the uniform financial accounting and reporting 
 32.11  standards for Minnesota school districts, as of June 30 each 
 32.12  year, is more than 2-1/2 percent of the year's expenditure 
 32.13  amount, the district must, prior to January 31 of the next 
 32.14  fiscal year, submit a special operating plan to reduce the 
 32.15  district's deficit expenditures to the commissioner for 
 32.16  approval.  The commissioner may also require the district to 
 32.17  provide evidence that the district meets and will continue to 
 32.18  meet all high school graduation requirements. 
 32.19     Notwithstanding any other law to the contrary, a district 
 32.20  submitting a special operating plan to the commissioner under 
 32.21  this clause which is disapproved by the commissioner must not 
 32.22  receive any aid pursuant to chapters 120B, 122A, 123A, 123B, 
 32.23  124D, 125A, 126C, and 127A until a special operating plan of the 
 32.24  district is so approved. 
 32.25     (2) A district must receive aids pending the approval of 
 32.26  its special operating plan under clause (1).  A district which 
 32.27  complies with its approved operating plan must receive aids as 
 32.28  long as the district continues to comply with the approved 
 32.29  operating plan. 
 32.30     Sec. 7.  Minnesota Statutes 1998, section 123B.86, 
 32.31  subdivision 1, is amended to read: 
 32.32     Subdivision 1.  [GENERAL PROVISIONS.] A district shall 
 32.33  provide equal transportation within the district for all school 
 32.34  children to any school when transportation is deemed necessary 
 32.35  by the school board because of distance or traffic condition in 
 32.36  like manner and form as provided in sections 123B.88 and 124.223 
 33.1   123B.92, when applicable. 
 33.2      Sec. 8.  Minnesota Statutes 1998, section 123B.88, 
 33.3   subdivision 3, is amended to read: 
 33.4      Subd. 3.  [TRANSPORTATION SERVICES CONTRACTS.] The board 
 33.5   may contract for the furnishing of authorized transportation 
 33.6   under rules established by the commissioner section 123B.52, and 
 33.7   may purchase gasoline and furnish same to a contract carrier for 
 33.8   use in the performance of a contract with the school district 
 33.9   for transportation of school children to and from school. 
 33.10     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
 33.11  123B.90, subdivision 2, is amended to read: 
 33.12     Subd. 2.  [STUDENT TRAINING.] (a) Each district must 
 33.13  provide public school pupils enrolled in grades kindergarten 
 33.14  through 10 with age-appropriate school bus safety training.  The 
 33.15  training must be results-oriented and shall consist of both 
 33.16  classroom instruction and practical training using a school 
 33.17  bus.  Upon completing the training, a student shall be able to 
 33.18  demonstrate knowledge and understanding of at least the 
 33.19  following competencies and concepts: 
 33.20     (1) transportation by school bus is a privilege and not a 
 33.21  right; 
 33.22     (2) district policies for student conduct and school bus 
 33.23  safety; 
 33.24     (3) appropriate conduct while on the school bus; 
 33.25     (4) the danger zones surrounding a school bus; 
 33.26     (5) procedures for safely boarding and leaving a school 
 33.27  bus; 
 33.28     (6) procedures for safe street or road crossing; 
 33.29     (7) school bus evacuation and other emergency procedures; 
 33.30  and 
 33.31     (8) appropriate training on the use of lap belts or lap and 
 33.32  shoulder belts, if the district uses buses equipped with lap 
 33.33  belts or lap and shoulder belts. 
 33.34     (b) Each nonpublic school located within the district must 
 33.35  provide all nonpublic school pupils enrolled in grades 
 33.36  kindergarten through 10 who are transported by school bus at 
 34.1   public expense and attend school within the district's 
 34.2   boundaries with training as required in paragraph (a).  The 
 34.3   school district shall make a bus available for the practical 
 34.4   training if the district transports the nonpublic students.  
 34.5   Each nonpublic school shall provide the instruction. 
 34.6      (c) All students enrolled in grades kindergarten through 3 
 34.7   who are transported by school bus and are enrolled during the 
 34.8   first or second week of school must demonstrate achievement of 
 34.9   the school bus safety training competencies by the end of the 
 34.10  third week of school.  All students enrolled in grades 4 through 
 34.11  10 who are transported by school bus and are enrolled during the 
 34.12  first or second week of school must demonstrate achievement of 
 34.13  the competencies by the end of the sixth week of school.  
 34.14  Students enrolled in grades kindergarten through 10 who enroll 
 34.15  in a school after the second week of school and are transported 
 34.16  by school bus shall undergo school bus safety training and 
 34.17  demonstrate achievement of the school bus safety competencies 
 34.18  within four weeks of the first day of attendance.  The pupil 
 34.19  school transportation safety director in each district must 
 34.20  certify to the commissioner annually that all students 
 34.21  transported by school bus within the district have 
 34.22  satisfactorily demonstrated knowledge and understanding of the 
 34.23  school bus safety competencies according to this section or 
 34.24  provide an explanation for a student's failure to demonstrate 
 34.25  the competencies.  The principal or other chief administrator of 
 34.26  each nonpublic school must certify annually to the public school 
 34.27  transportation safety director of the district in which the 
 34.28  school is located that all of the school's students transported 
 34.29  by school bus at public expense have received training.  A 
 34.30  district may deny transportation to a student who fails to 
 34.31  demonstrate the competencies, unless the student is unable to 
 34.32  achieve the competencies due to a disability, or to a student 
 34.33  who attends a nonpublic school that fails to provide training as 
 34.34  required by this subdivision. 
 34.35     (d) A district and a nonpublic school with students 
 34.36  transported by school bus at public expense must, to the extent 
 35.1   possible, provide kindergarten pupils with bus safety training 
 35.2   before the first day of school. 
 35.3      (e) A district and a nonpublic school with students 
 35.4   transported by school bus at public expense must also provide 
 35.5   student safety education for bicycling and pedestrian safety, 
 35.6   for students enrolled in grades kindergarten through 5. 
 35.7      (f) A district and a nonpublic school with students 
 35.8   transported by school bus at public expense must make reasonable 
 35.9   accommodations for the school bus, bicycle, and pedestrian 
 35.10  safety training of pupils known to speak English as a second 
 35.11  language and pupils with disabilities. 
 35.12     Sec. 10.  Minnesota Statutes 1999 Supplement, section 
 35.13  123B.91, subdivision 1, is amended to read: 
 35.14     Subdivision 1.  [COMPREHENSIVE POLICY.] Each district must 
 35.15  develop and implement a comprehensive, written policy governing 
 35.16  pupil transportation safety, including transportation of 
 35.17  nonpublic school students, when applicable.  The policy shall, 
 35.18  at minimum, contain: 
 35.19     (1) provisions for appropriate student bus safety training 
 35.20  under section 123B.90; 
 35.21     (2) rules governing student conduct on school buses and in 
 35.22  school bus loading and unloading areas; 
 35.23     (3) a statement of parent or guardian responsibilities 
 35.24  relating to school bus safety; 
 35.25     (4) provisions for notifying students and parents or 
 35.26  guardians of their responsibilities and the rules, including the 
 35.27  district's seat belt policy, if applicable; 
 35.28     (5) an intradistrict system for reporting school bus 
 35.29  accidents or misconduct and a system for dealing with local law 
 35.30  enforcement officials in cases of criminal conduct on a school 
 35.31  bus; 
 35.32     (6) a discipline policy to address violations of school bus 
 35.33  safety rules, including procedures for revoking a student's bus 
 35.34  riding privileges in cases of serious or repeated misconduct; 
 35.35     (7) a system for integrating school bus misconduct records 
 35.36  with other discipline records; 
 36.1      (8) a statement of bus driver duties; 
 36.2      (9) planned expenditures for safety activities under 
 36.3   section 123B.89 and, where applicable, provisions governing bus 
 36.4   monitor qualifications, training, and duties; 
 36.5      (10) rules governing the use and maintenance of type III 
 36.6   vehicles, drivers of type III vehicles, qualifications to drive 
 36.7   a type III vehicle, qualifications for a type III vehicle and 
 36.8   the circumstances under which a student may be transported in a 
 36.9   type III vehicle; 
 36.10     (11) operating rules and procedures; 
 36.11     (12) provisions for annual bus driver in-service training 
 36.12  and evaluation; 
 36.13     (13) emergency procedures; 
 36.14     (14) a system for maintaining and inspecting equipment; 
 36.15     (15) requirements of the school district, if any, that 
 36.16  exceed state law minimum requirements for school bus operations; 
 36.17  and 
 36.18     (16) requirements for basic first aid training, which must 
 36.19  include the Heimlich maneuver and procedures for dealing with 
 36.20  obstructed airways, shock, bleeding, and seizures. 
 36.21     Districts are encouraged to use the model policy developed 
 36.22  by the Minnesota school boards association, the department of 
 36.23  public safety, and the department of children, families, and 
 36.24  learning, as well as the current edition of the "National 
 36.25  Standards for School Buses and Operations 
 36.26  Transportation," published by the National Safety Council, in 
 36.27  developing safety policies.  Each district shall review its 
 36.28  policy annually and make appropriate amendments, which must be 
 36.29  submitted to the school bus safety advisory committee within one 
 36.30  month of approval by the school board. 
 36.31     Sec. 11.  Minnesota Statutes 1998, section 124D.081, 
 36.32  subdivision 6, is amended to read: 
 36.33     Subd. 6.  [PREPAREDNESS REVENUE.] (a) A qualifying school 
 36.34  district is eligible for first-grade preparedness revenue equal 
 36.35  to the basic formula allowance for that year times the number of 
 36.36  children five years of age or older enrolled in a kindergarten 
 37.1   program at the site on October 1 of the previous year times .53. 
 37.2      (b) This revenue must supplement and not replace 
 37.3   compensatory revenue that the district uses for the same or 
 37.4   similar purposes under chapters 120B, 123A, 123B, 124D, 126C, 
 37.5   and 127A. 
 37.6      (c) A pupil enrolled in the first grade preparedness 
 37.7   program at a qualifying school site is eligible for 
 37.8   transportation under section 123B.88, subdivision 1.  
 37.9      (d) First grade preparedness revenue paid to a charter 
 37.10  school for which a school district is providing transportation 
 37.11  according to section 124D.10, subdivision 16, shall be decreased 
 37.12  by an amount equal to the product of $170 the formula allowance 
 37.13  according to section 126C.10, subdivision 2, times .0485 times 
 37.14  the pupil units calculated according to paragraph (a).  This 
 37.15  amount shall be paid to the school district for transportation 
 37.16  costs.  
 37.17     Sec. 12.  Minnesota Statutes 1998, section 124D.128, 
 37.18  subdivision 4, is amended to read: 
 37.19     Subd. 4.  [TRANSPORTATION.] A district must report data to 
 37.20  the department as required by the department to account for 
 37.21  learning year summer transportation expenditures for this 
 37.22  program must be included in nonregular transportation according 
 37.23  to sections 124.225, subdivision 8; and 124.226, subdivision 4.  
 37.24                             ARTICLE 10 
 37.25                           STATE AGENCIES
 37.26     Section 1.  Laws 1999, chapter 241, article 10, section 6, 
 37.27  is amended to read: 
 37.28     Sec. 6.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
 37.29  CENTER FOR ARTS EDUCATION.] 
 37.30     The sums indicated in this section are appropriated from 
 37.31  the general fund to the center for arts education for the fiscal 
 37.32  years designated: 
 37.33       $7,239,000     .....     2000
 37.34       $7,400,000     .....     2001
 37.35     Of each year's appropriation, $154,000 is to fund artist 
 37.36  and arts organization participation in the education residency 
 38.1   and education technology projects, $75,000 is for school support 
 38.2   for the residency project, $121,000 is for further development 
 38.3   of the partners:  arts and school for students (PASS) program, 
 38.4   including pilots, and $220,000 $110,000 is to fund the center 
 38.5   for arts education base for asset preservation and facility 
 38.6   repair.  The guidelines for the education residency project and 
 38.7   the pass program shall be developed and defined by the center 
 38.8   for arts education in cooperation with the Minnesota arts 
 38.9   board.  The Minnesota arts board shall participate in the review 
 38.10  and allocation process.  The center for arts education and the 
 38.11  Minnesota arts board shall cooperate to fund these projects. 
 38.12     Any balance in the first year does not cancel but is 
 38.13  available in the second year. 
 38.14     Sec. 2.  [EFFECTIVE DATE.] 
 38.15     Section 1 is effective the day following final enactment.