as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to education; providing for general 1.3 education; special programs; community and school 1.4 services; children and family support; lifework 1.5 development; education organization and cooperation; 1.6 education excellence; nutrition and other education 1.7 programs; education policy provisions; libraries; 1.8 technology; tax deduction and credit; education 1.9 investment; state agencies; appropriating money; 1.10 amending Minnesota Statutes 1996, sections 120.062, 1.11 subdivisions 3, 6, 7, 9, and 11; 121.611, subdivisions 1.12 1, 2, and by adding subdivisions; 121.904, subdivision 1.13 4a; 123.35, by adding subdivisions; 123.3514, 1.14 subdivision 6; 124.155, subdivision 1; 124.17, 1.15 subdivisions 1, 1d, 1e, 4, 5, and by adding 1.16 subdivisions; 124.175; 124.225, subdivisions 1, 7f, 1.17 13, 14, 15, 16, and 17; 124.226, subdivision 10; 1.18 124.2445; 124.2455; 124.248, subdivisions 1, 1a, 3, 4, 1.19 and by adding a subdivision; 124.2613, subdivision 6; 1.20 124.2711, subdivisions 1 and 2a; 124.2716, subdivision 1.21 3; 124.2725, subdivision 2; 124.2726, subdivision 2; 1.22 124.2727, subdivisions 6a, 6c, and 6d; 124.273, 1.23 subdivisions 1e, 1f, and 5; 124.312, subdivisions 4 1.24 and 5; 124.313; 124.314, subdivisions 1 and 2; 1.25 124.3201, subdivisions 1, 2, and 4; 124.321, 1.26 subdivisions 1 and 3; 124.323, subdivisions 1 and 2; 1.27 124.42, subdivision 4; 124.431, subdivision 11; 1.28 124.45; 124.574, subdivision 2f; 124.83, subdivision 1.29 4; 124.86, subdivision 2, and by adding a subdivision; 1.30 124.91, subdivisions 1 and 5; 124.912, subdivisions 1, 1.31 2, and 3; 124.916, subdivisions 1, 2, and 3; 124.918, 1.32 subdivision 6; 124.95, subdivision 4; 124.961; 1.33 124A.02, subdivision 21; 124A.029, subdivisions 1, 3, 1.34 and by adding a subdivision; 124A.03, subdivisions 1c, 1.35 1f, 1g, and 3c; 124A.036, subdivisions 5 and 6; 1.36 124A.04, subdivision 2; 124A.22, subdivisions 1, 2, 3, 1.37 6, 6a, 8, 8a, 10, 11, 13, 13a, 13b, 13d, 13f, and by 1.38 adding a subdivision; 124A.225, subdivision 1; 1.39 124A.23, subdivisions 1, 2, 3, and 5; 124A.26, 1.40 subdivisions 1 and 2; 124A.28; 126.22, subdivisions 3, 1.41 3a, and 8; 126.23, subdivision 1; 179A.16, by adding a 1.42 subdivision; 179A.17, subdivision 1; 290.01, 1.43 subdivisions 19a and 19b; and 290.091, subdivisions 2 1.44 and 6; Laws 1995, First Special Session chapter 3, 1.45 article 12, section 7, subdivision 1; Laws 1996, 1.46 chapter 412, article 12, section 8; Laws 1996, chapter 2.1 461, section 3, subdivision 2; proposing coding for 2.2 new law in Minnesota Statutes, chapters 11A; 121; 123; 2.3 124; 136A; 179A; and 290; repealing Minnesota Statutes 2.4 1996, sections 121.611, subdivision 3; 123.951; 2.5 124.177; 124.223; 124.225, subdivisions 3a, 7a, 7b, 2.6 7d, 7e, 8a, and 8k; 124.226; 124.2727, subdivisions 2.7 6a, 6b, 6c, and 9; 124.2728; 124.276; 124.311; 2.8 124.312; 124.313; 124.314; 124.3201, subdivisions 2a 2.9 and 2b; 124.912, subdivisions 2 and 3; 124A.02, 2.10 subdivision 24; 124A.22, subdivisions 2a, 4, 4a, 4b, 2.11 and 9; 124A.292; and 134.46; Laws 1994, chapter 647, 2.12 articles 7, section 18; and 8, section 43; and Laws 2.13 1995, First Special Session chapter 3, articles 4, 2.14 section 31, paragraph (a); and 12, section 8. 2.15 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.16 ARTICLE 1 2.17 GENERAL EDUCATION 2.18 Section 1. Minnesota Statutes 1996, section 120.062, 2.19 subdivision 9, is amended to read: 2.20 Subd. 9. [TRANSPORTATION.](a)If requested by the parent 2.21 of a pupil, the nonresident district shall provide 2.22 transportation within the district.The state shall pay2.23transportation aid to the district according to section 124.225.2.24 The resident district is not required to provide or pay for 2.25 transportation between the pupil's residence and the border of 2.26 the nonresident district. A parent may be reimbursed by the 2.27 nonresident district for the costs of transportation from the 2.28 pupil's residence to the border of the nonresident district if 2.29 the pupil is from a family whose income is at or below the 2.30 poverty level, as determined by the federal government. The 2.31 reimbursement may not exceed the pupil's actual cost of 2.32 transportation or 15 cents per mile traveled, whichever is 2.33 less. Reimbursement may not be paid for more than 250 miles per 2.34 week. 2.35 At the time a nonresident district notifies a parent or 2.36 guardian that an application has been accepted under subdivision 2.37 5 or 6, the nonresident district must provide the parent or 2.38 guardian with the following information regarding the 2.39 transportation of nonresident pupils under this section: 2.40 (1) a nonresident district may transport a pupil within the 2.41 pupil's resident district under this section only with the 2.42 approval of the resident district; and 3.1 (2) a parent or guardian of a pupil attending a nonresident 3.2 district under this section may appeal under section 123.39, 3.3 subdivision 6, the refusal of the resident district to allow the 3.4 nonresident district to transport the pupil within the resident 3.5 district. 3.6(b) Notwithstanding paragraph (a) and section 124.225,3.7subdivision 8l, transportation provided by a nonresident3.8district between home and school for a pupil attending school3.9under this section is authorized for nonregular transportation3.10revenue under section 124.225, if the following criteria are met:3.11(1) the school that the pupil was attending prior to3.12enrolling in the nonresident district under this section was3.13closed;3.14(2) the distance from the closed school to the next nearest3.15school in the district that the student could attend is at least3.1620 miles;3.17(3) the pupil's residence is at least 20 miles from any3.18school that the pupil could attend in the resident district; and3.19(4) the pupil's residence is closer to the school of3.20attendance in the nonresident district than to any school the3.21pupil could attend in the resident district.3.22 Sec. 2. Minnesota Statutes 1996, section 121.904, 3.23 subdivision 4a, is amended to read: 3.24 Subd. 4a. [LEVY RECOGNITION.] (a) "School district tax 3.25 settlement revenue" means the current, delinquent, and 3.26 manufactured home property tax receipts collected by the county 3.27 and distributed to the school district, including distributions 3.28 made pursuant to section 279.37, subdivision 7, and excluding 3.29 the amount levied pursuant to section 124.914, subdivision 1. 3.30 (b) In June of each year, the school district shall 3.31 recognize as revenue, in the fund for which the levy was made, 3.32 the lesser of: 3.33 (1) the May, June, and July school district tax settlement 3.34 revenue received in that calendar year; or 3.35 (2) the sum of the state aids and credits enumerated in 3.36 section 124.155, subdivision 2, which are for the fiscal year 4.1 payable in that fiscal year plus an amount equal to the levy 4.2 recognized as revenue in June of the prior year plus 31 percent 4.3for fiscal year 1996 and thereafterof the amount of the levy 4.4 certified in the prior calendar year according to section 4.5 124A.03, subdivision 2, plus or minus auditor's adjustments, not4.6including levy portions that are assumed by the state; or 4.7(3) 18.1 percent for fiscal year 1996, the percent4.8determined under Laws 1996, chapter 461, section 3, for fiscal4.9year 1997 and that same percent thereafter of the amount of the4.10levy certified in the prior calendar year, plus or minus4.11auditor's adjustments, not including levy portions that are4.12assumed by the state, which remains after subtracting, by fund,4.13the amounts levied for the following purposes:4.14(i) reducing or eliminating projected deficits in the4.15reserved fund balance accounts for unemployment insurance and4.16bus purchases;4.17(ii) statutory operating debt pursuant to section 124.914,4.18subdivision 1;4.19(iii) retirement and severance pay pursuant to sections4.20122.531, subdivision 9, 124.2725, subdivision 15, 124.4945,4.21124.912, subdivision 1, and 124.916, subdivision 3, and Laws4.221975, chapter 261, section 4;4.23(iv) amounts levied for bonds issued and interest thereon,4.24amounts levied for debt service loans and capital loans, amounts4.25levied for down payments under section 124.82, subdivision 3;4.26and4.27(v) amounts levied under section 124.755.4.28Notwithstanding the foregoing, the levy recognition4.29percentage for the referendum levy certified according to4.30section 124A.03, subdivision 2, is 31 percent.4.31 (3)(i) 6.9 percent in 1997 and 6.6 percent in 1998 and 4.32 later years of the lesser of the amount of the general education 4.33 levy certified in the prior calendar year according to section 4.34 124A.23, subdivision 2, or the difference between the amount of 4.35 the total general fund levy certified in the prior calendar year 4.36 and the sum of the amounts certified in the prior calendar year 5.1 according to sections 124A.03, subdivision 2; 124.315, 5.2 subdivisions 2, 3, and 4; 124.916, subdivisions 1, 2, and 3, 5.3 paragraphs (4), (5), and (6); and 124.918, subdivision 6; plus 5.4 (ii) 31 percent of the referendum levy certified in the 5.5 prior calendar year according to section 124A.03, subdivision 2; 5.6 plus 5.7 (iii) the entire amount of the levy certified in the prior 5.8 calendar year according to sections 124.912, subdivisions 1, 5.9 paragraph (b), 2, and 3; 124.315, subdivision 4; 124.916, 5.10 subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 5.11 124.918, subdivision 6. 5.12 (c) In July of each year, the school district shall 5.13 recognize as revenue that portion of the school district tax 5.14 settlement revenue received in that calendar year and not 5.15 recognized as revenue for the previous fiscal year pursuant to 5.16 clause (b). 5.17 (d) All other school district tax settlement revenue shall 5.18 be recognized as revenue in the fiscal year of the settlement. 5.19 Portions of the school district levy assumed by the state, 5.20 including prior year adjustments and the amount to fund the 5.21 school portion of the reimbursement made pursuant to section 5.22 273.425, shall be recognized as revenue in the fiscal year 5.23 beginning in the calendar year for which the levy is payable. 5.24 Sec. 3. Minnesota Statutes 1996, section 123.3514, 5.25 subdivision 6, is amended to read: 5.26 Subd. 6. [FINANCIAL ARRANGEMENTS.] For a pupil enrolled in 5.27 a course under this section, the department of children, 5.28 families, and learning shall make payments according to this 5.29 subdivision for courses that were taken for secondary credit. 5.30 The department shall not make payments to a school district 5.31 or post-secondary institution for a course taken for 5.32 post-secondary credit only. The department shall not make 5.33 payments to a post-secondary institution for a course from which 5.34 a student officially withdraws during the first 14 days of the 5.35 quarter or semester or who has been absent from the 5.36 post-secondary institution for the first 15 consecutive school 6.1 days of the quarter or semester and is not receiving instruction 6.2 in the home or hospital. 6.3 A post-secondary institution shall receive the following: 6.4 (1) for an institution granting quarter credit, the 6.5 reimbursement per credit hour shall be an amount equal to 88 6.6 percent of the product of the formula allowance, multiplied by 6.7 1.3, and divided by 45; or 6.8 (2) for an institution granting semester credit, the 6.9 reimbursement per credit hour shall be an amount equal to 88 6.10 percent of the product of the general revenue formula allowance, 6.11 multiplied by 1.3, and divided by 30. 6.12 The department of children, families, and learning shall 6.13 pay to each post-secondary institution 100 percent of the amount 6.14 in clause (1) or (2) within 30 days of receiving initial 6.15 enrollment information each quarter or semester. If changes in 6.16 enrollment occur during a quarter or semester, the change shall 6.17 be reported by the post-secondary institution at the time the 6.18 enrollment information for the succeeding quarter or semester is 6.19 submitted. At any time the department of children, families, 6.20 and learning notifies a post-secondary institution that an 6.21 overpayment has been made, the institution shall promptly remit 6.22 the amount due. Notwithstanding the amount of the formula 6.23 allowance in section 124A.22, subdivision 2, the commissioner 6.24 shall use the amount of the formula allowance minus $300 for 6.25 fiscal year 1998 and the amount of the formula allowance minus 6.26 $176 for fiscal year 1999 and later fiscal years in determining 6.27 payments under this subdivision and subdivision 6b. 6.28 Sec. 4. Minnesota Statutes 1996, section 124.155, 6.29 subdivision 1, is amended to read: 6.30 Subdivision 1. [AMOUNT OF ADJUSTMENT.] Each year state 6.31 aids and credits enumerated in subdivision 2 payable to any 6.32 school district for that fiscal year shall be adjusted, in the 6.33 order listed, by an amount equal to (1) the amount the district 6.34 recognized as revenue for the prior fiscal year pursuant to 6.35 section 121.904, subdivision 4a, clause (b), minus (2) the 6.36 amount the district recognizes as revenue for the current fiscal 7.1 year pursuant to section 121.904, subdivision 4a, clause (b). 7.2 For the purposes of making the aid adjustment under this 7.3 subdivision, the amount the district recognizes as revenue for 7.4 either the prior fiscal year or the current fiscal year pursuant 7.5 to section 121.904, subdivision 4a, clause (b), shall not 7.6 include any amount levied pursuant to sections124.226,7.7subdivision 9,124.912, subdivisions 1, paragraph (b), 2, and 3, 7.8 or a successor provision only for those districts affected, 7.9 124.916, subdivisions 1and, 2, and 3, paragraphs 4, 5, and 6, 7.10 124.918, subdivision 6, and 124A.03, subdivision 2; and Laws7.111992, chapter 499, articles 1, section 20, and 6, section 36. 7.12 Payment from the permanent school fund shall not be adjusted 7.13 pursuant to this section. The school district shall be notified 7.14 of the amount of the adjustment made to each payment pursuant to 7.15 this section. 7.16 Sec. 5. Minnesota Statutes 1996, section 124.17, 7.17 subdivision 1, is amended to read: 7.18 Subdivision 1. [PUPIL UNIT.] Pupil units for each resident 7.19 pupil in average daily membership shall be counted according to 7.20 this subdivision. 7.21 (a) A prekindergarten pupil with a disability who is 7.22 enrolled in a program approved by the commissioner and has an 7.23 individual education plan is counted as the ratio of the number 7.24 of hours of assessment and education service to 825 with a 7.25 minimum of 0.28, but not more than one. 7.26 (b) A prekindergarten pupil who is assessed but determined 7.27 not to be handicapped is counted as the ratio of the number of 7.28 hours of assessment service to 825. 7.29 (c) A kindergarten pupil with a disability who is enrolled 7.30 in a program approved by the commissioner is counted as the 7.31 ratio of the number of hours of assessment and education 7.32 services required in the fiscal year by the pupil's individual 7.33 education program plan to 875, but not more than one. 7.34 (d) A kindergarten pupil who is not included in paragraph 7.35 (c) is counted as .53 of a pupil unit for fiscal year19951998 7.36 and .55 of a pupil unit for fiscal year 1999 and thereafter. 8.1 (e) A pupil who is in any of grades 1 to 6 is counted as 8.2 1.06 pupil units for fiscal year1995 and thereafter1998. For 8.3 fiscal year 1999 and later years, a pupil who is in any of 8.4 grades 1 to 3 is counted as 1.1 pupil units. 8.5 (f)For fiscal year 1996 and fiscal year 1997, a pupil who8.6is in any of grades 7 to 12 is counted as 1.3 pupil units.For 8.7 fiscal year 1999 and later years, a pupil who is in any of 8.8 grades 4 to 6 is counted as one pupil unit. 8.9 (g) For fiscal year 1998, a pupil who is in any of grades 7 8.10 to 12 is counted as1.251.3 pupil units. For fiscal year 1999 8.11 and later years, a pupil who is in any of grades 7 to 12 is 8.12 counted as1.21.22 pupil units. 8.13(g)(h)For fiscal year 1996 and fiscal year 1997, a pupil8.14who is in the post-secondary enrollment options program is8.15counted as 1.3 pupil units.For fiscal year 1998, a pupil who 8.16 is in the post-secondary enrollment options program is counted 8.17 as1.251.3 pupil units. For fiscal year 1999 and later years, 8.18 a pupil who is in the post-secondary enrollment options program 8.19 is counted as1.21.22 pupil units. 8.20(h) In fiscal year 1998, the pupil units used in computing8.21a district's general education revenue and referendum revenue8.22may not be reduced by more than two percent due to the reduction8.23in the secondary pupil weight from 1.3 as specified in8.24paragraphs (f) and (g). In fiscal year 1999 and later years,8.25the pupil units used in computing a district's general education8.26revenue and referendum revenue may not be decreased by more than8.27four percent due to the reduction in the secondary weight from8.281.3 as specified in paragraphs (f) and (g).8.29 Sec. 6. Minnesota Statutes 1996, section 124.17, 8.30 subdivision 1d, is amended to read: 8.31 Subd. 1d. [FISCAL YEAR 1998 AFDC PUPIL UNITS.] AFDC pupil 8.32 units for fiscal year1993 and thereafter1998 must be computed 8.33 according to this subdivision. 8.34 (a) The AFDC concentration percentage for a district equals 8.35 the product of 100 times the ratio of: 8.36 (1) the number of pupils enrolled in the district from 9.1 families receiving aid to families with dependent children 9.2 according to subdivision 1e; to 9.3 (2) the number of pupils in average daily membership 9.4 according to subdivision 1e enrolled in the district. 9.5 (b) The AFDC pupil weighting factor for a district equals 9.6 the lesser of one or the quotient obtained by dividing the 9.7 district's AFDC concentration percentage by 11.5. 9.8 (c) The AFDC pupil units for a district for fiscal year 9.9 1993 and thereafter equals the product of: 9.10 (1) the number of pupils enrolled in the district from 9.11 families receiving aid to families with dependent children 9.12 according to subdivision 1e; times 9.13 (2) the AFDC pupil weighting factor for the district; times 9.14 (3) .67. 9.15 Sec. 7. Minnesota Statutes 1996, section 124.17, 9.16 subdivision 1e, is amended to read: 9.17 Subd. 1e. [FISCAL YEAR 1998 AFDC PUPIL COUNTS.] AFDC pupil 9.18 counts and average daily membership forsubdivisions 1b9.19andsubdivision 1d shall be determined according to this 9.20 subdivision: 9.21 (a) For districts where the number of pupils from families 9.22 receiving aid to families with dependent children has increased 9.23 over the preceding year for each of the two previous years, the 9.24 number of pupils enrolled in the district from families 9.25 receiving aid to families with dependent children shall be those 9.26 counted on October 1 of the previous school year. The average 9.27 daily membership used shall be from the previous school year. 9.28 (b) For districts that do not meet the requirement of 9.29 paragraph (a), the number of pupils enrolled in the district 9.30 from families receiving aid to families with dependent children 9.31 shall be the average number of pupils on October 1 of the second 9.32 previous school year and October 1 of the previous school year. 9.33 The average daily membership used shall be the average number 9.34 enrolled in the previous school year and the second previous 9.35 school year. 9.36 (c) Notwithstanding paragraphs (a) and (b), for charter 10.1 schools in the first three years of operation, and for tribal 10.2 contract schools, the number of pupils enrolled from families 10.3 receiving AFDC shall be those counted on October 1 of the 10.4 current school year. The average daily membership used shall be 10.5 from the current school year. 10.6 Sec. 8. Minnesota Statutes 1996, section 124.17, is 10.7 amended by adding a subdivision to read: 10.8 Subd. 1g. [AFDC PUPIL UNITS.] AFDC pupil units for fiscal 10.9 year 1999 and thereafter must be computed according to this 10.10 subdivision. 10.11 (a) The AFDC concentration percentage for a district equals 10.12 the product of 100 times the ratio of: 10.13 (1) the number of pupils residing in the district from 10.14 families receiving aid to families with dependent children 10.15 according to subdivision 1h, paragraph (a); to 10.16 (2) the number of pupils in average daily membership 10.17 according to subdivision 1h, paragraph (a), residing in the 10.18 district. 10.19 (b) The AFDC pupil weighting factor for AFDC pupils 10.20 residing in a district equals the lesser of one or the quotient 10.21 obtained by dividing the district's AFDC concentration 10.22 percentage by 11.5. 10.23 (c) The AFDC pupil units for a district for fiscal year 10.24 1999 and thereafter for each pupil enrolled in the district from 10.25 a family receiving aid to families with dependent children 10.26 according to subdivision 1h, paragraph (b), equals the product 10.27 of: 10.28 (1) the AFDC pupil weighting factor for pupil's district of 10.29 residence; times 10.30 (2) .67. 10.31 Sec. 9. Minnesota Statutes 1996, section 124.17, is 10.32 amended by adding a subdivision to read: 10.33 Subd. 1h. [AFDC PUPIL COUNTS.] (a) AFDC pupil counts and 10.34 average daily membership for subdivision 1g, paragraph (a), 10.35 shall be determined according to this paragraph. 10.36 (i) For districts where the number of resident pupils from 11.1 families receiving aid to families with dependent children has 11.2 increased over the preceding year for each of the two previous 11.3 years, the number of pupils residing in the district from 11.4 families receiving aid to families with dependent children shall 11.5 be those counted on October 1 of the previous school year. The 11.6 average daily membership used shall be from the previous school 11.7 year. 11.8 (ii) For districts that do not meet the requirement of 11.9 paragraph (i), the number of pupils residing in the district 11.10 from families receiving aid to families with dependent children 11.11 shall be the average number of pupils on October 1 of the second 11.12 previous school year and October 1 of the previous school year. 11.13 The average daily membership used shall be the average 11.14 number of pupils residing in the district in the previous school 11.15 year and the second previous school year. 11.16 (b) AFDC pupil counts for subdivision 1g, paragraph (c), 11.17 shall be determined according to this paragraph. 11.18 (i) For districts where the number of pupils from families 11.19 receiving aid to families with dependent children enrolled in 11.20 the district has increased over the preceding year for each of 11.21 the two previous years, the pupils enrolled in the district from 11.22 families receiving aid to families with dependent children shall 11.23 be those counted on October 1 of the previous school year. 11.24 (ii) For districts that do not meet the requirement of 11.25 paragraph (i), pupils enrolled in the district from families 11.26 receiving aid to families with dependent children shall be those 11.27 counted on October 1 of the previous school year times one-half, 11.28 plus those counted on October 1 of the second previous school 11.29 year times one-half. 11.30 Notwithstanding clauses (i) and (ii), for charter schools 11.31 in the first three years of operation, the number of pupils 11.32 enrolled from families receiving aid to families with dependent 11.33 children shall be those counted on October 1 of the current 11.34 school year. 11.35 Sec. 10. Minnesota Statutes 1996, section 124.17, 11.36 subdivision 4, is amended to read: 12.1 Subd. 4. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 12.2 enrolled in a learning year program according to section 12.3 121.585, an area learning center according to sections 124C.45 12.4 and 124C.46, or an alternative program approved by the 12.5 commissioner, for more than 1,020 hours in a school year for a 12.6 secondary studentand for, more than 935 hours in a school year 12.7 for an elementary student, or more than 425 hours in a school 12.8 year for a kindergarten student without a disability, that pupil 12.9 may be counted as more than one pupil in average daily 12.10 membership. The amount in excess of one pupil must be 12.11 determined by the ratio of the number of hours of instruction 12.12 provided to that pupil in excess of: (i) the greater of 1,020 12.13 hours or the number of hours required for a full-time secondary 12.14 pupil in the district to 1,020 for a secondary pupiland of; 12.15 (ii) the greater of 935 hours or the number of hours required 12.16 for a full-time elementary pupil in the district to 935 for an 12.17 elementary pupil in grades 1 through 6; and (iii) the greater of 12.18 425 hours or the number of hours required for a full-time 12.19 kindergarten student in the district for a kindergarten student 12.20 without a disability. Hours that occur after the close of the 12.21 instructional year in June shall be attributable to the 12.22 following fiscal year. 12.23 (b)(i) To receive general education revenue for a pupil in 12.24 an alternative program that has an independent study component, 12.25 a school district must meet the requirements in this paragraph. 12.26 The school district must develop with the pupil a continual 12.27 learning plan for the pupil. A district must allow a minor 12.28 pupil's parent or guardian to participate in developing the 12.29 plan, if the parent or guardian wants to participate. The plan 12.30 must identify the learning experiences and expected outcomes 12.31 needed for satisfactory credit for the year and for graduation. 12.32 The plan must be updated each year. 12.33 (ii) General education revenue for a pupil in an approved 12.34 alternative program without an independent study component must 12.35 be prorated for a pupil participating for less than a full year, 12.36 or its equivalent. 13.1 (iii) General education revenue for a pupil in an approved 13.2 alternative program that has an independent study component must 13.3 be paid for each hour of teacher contact time and each hour of 13.4 independent study time completed toward a credit necessary for 13.5 graduation. Average daily membership for a pupil shall equal 13.6 the number of hours of teacher contact time and independent 13.7 study time divided by 1,020. 13.8 (iv) For an alternative program having an independent study 13.9 component, the commissioner shall require a description of the 13.10 courses in the program, the kinds of independent study involved, 13.11 the expected learning outcomes of the courses, and the means of 13.12 measuring student performance against the expected outcomes. 13.13 Sec. 11. Minnesota Statutes 1996, section 124.225, 13.14 subdivision 1, is amended to read: 13.15 Subdivision 1. [DEFINITIONS.] For purposes of this section 13.16 and section 124.3201, the terms defined in this subdivision have 13.17 the meanings given to them. 13.18 (a)"FTE" means a full-time equivalent pupil whose13.19transportation is authorized for aid purposes by section 124.223.13.20(b) "Authorized cost for regular transportation"13.21means"Actual expenditure per pupil transported in the regular 13.22 and excess transportation categories" means the quotient 13.23 obtained by dividing: 13.24 (1) the sum of: 13.25(1)(i) all expenditures for transportation in the regular 13.26 category, as defined in paragraph(c)(b), clause (1),for which13.27aid is authorized in section 124.223and the excess category, as 13.28 defined in paragraph (b), clause (2), plus 13.29(2)(ii) an amount equal to one year's depreciation on the 13.30 district's school bus fleet and mobile units computed on a 13.31 straight line basis at the rate of 15 percent per year for 13.32 districts operating a program under section 121.585 for grades 1 13.33 to 12 for all students in the district and 12-1/2 percent per 13.34 year for other districts of the cost of the fleet, plus 13.35(3) an amount equal to one year's depreciation on district13.36school buses reconditioned by the department of corrections14.1computed on a straight line basis at the rate of 33-1/3 percent14.2per year of the cost to the district of the reconditioning, plus14.3(4)(iii) an amount equal to one year's depreciation on the 14.4 district's type three school buses, as defined in section 14.5 169.01, subdivision 6, clause (5), which must be used a majority 14.6 of the time forthepupil transportation purposesin sections14.7124.223 and 124.226, subdivisions 5, 8, and 9, and were14.8purchased after July 1, 1982, for authorized transportation of14.9pupils, computed on a straight line basis at the rate of 20 14.10 percent per year of the cost of the type three school buses by: 14.11 (2) the number of pupils eligible for transportation in the 14.12 regular category, as defined in paragraph (b), clause (1), and 14.13 the excess category, as defined in paragraph (b), clause (2). 14.14(c)(b) "Transportation category" means a category of 14.15 transportation service provided to pupils as follows: 14.16 (1) Regular transportation istransportation services14.17provided during the regular school year under section 124.223,14.18subdivisions 1 and 2, excluding the following transportation14.19services provided under section 124.223, subdivision 1:14.20transportation between schools; transportation to and from14.21service-learning programs; noon transportation to and from14.22school for kindergarten pupils attending half-day sessions;14.23transportation of pupils to and from schools located outside14.24their normal attendance areas under the provisions of a plan for14.25desegregation mandated by the state board of education or under14.26court order; and transportation of elementary pupils to and from14.27school within a mobility zone.: 14.28 (i) transportation to and from school during the regular 14.29 school year for resident elementary pupils residing one mile or 14.30 more from the public or nonpublic school they attend, and 14.31 resident secondary pupils residing two miles or more from the 14.32 public or nonpublic school they attend, excluding desegregation 14.33 transportation and noon kindergarten transportation; but with 14.34 respect to transportation of pupils to and from nonpublic 14.35 schools, only to the extent permitted by sections 123.76 to 14.36 123.79; 15.1 (ii) transportation of resident pupils to and from language 15.2 immersion programs; 15.3 (iii) transportation of a pupil who is a custodial parent 15.4 and that pupil's child between the pupil's home and the child 15.5 care provider and between the provider and the school, if the 15.6 home and provider are within the attendance area of the school; 15.7 and 15.8 (iv) transportation to and from or board and lodging in 15.9 another district, of resident pupils of a district without a 15.10 secondary school. 15.11 For the purposes of this paragraph, a district may 15.12 designate a licensed day care facility, respite care facility, 15.13 the residence of a relative, or the residence of a person chosen 15.14 by the pupil's parent or guardian as the home of a pupil for 15.15 part or all of the day, if requested by the pupil's parent or 15.16 guardian, and if that facility or residence is within the 15.17 attendance area of the school the pupil attends. 15.18 (2)Nonregular transportation is transportation services15.19provided under section 124.223, subdivision 1, that are excluded15.20from the regular category and transportation services provided15.21under section 124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10.15.22(3)Excess transportation is transportation to and from 15.23 school during the regular school year for secondary pupils 15.24 residing at least one mile but less than two miles from the 15.25 publicschool they could attendorfrom thenonpublic school 15.26actually attendedthey attend, and transportation to and from 15.27 school for pupils residing less than one mile from school who 15.28 are transported because of extraordinary traffic, drug, or crime 15.29 hazards. 15.30(4)(3) Desegregation transportation is transportation 15.31 within and outside of the district during the regular school 15.32 year of pupils to and from schools located outside their normal 15.33 attendance areas under a plan for desegregation mandated by the 15.34 state board or under court order. 15.35(5) Handicapped transportation is transportation provided15.36under section 124.223, subdivision 4, for pupils with a16.1disability between home or a respite care facility and school or16.2other buildings where special instruction required by sections16.3120.17 and 120.1701 is provided.16.4 (4) "Transportation services for pupils with disabilities" 16.5 is: 16.6 (i) transportation of pupils with disabilities who cannot 16.7 be transported on a regular school bus between home or a respite 16.8 care facility and school; 16.9 (ii) necessary transportation of pupils with disabilities 16.10 from home or from school to other buildings, including centers 16.11 such as developmental achievement centers, hospitals, and 16.12 treatment centers where special instruction or services required 16.13 by sections 120.17 and 120.1701 are provided, within or outside 16.14 the district where services are provided; 16.15 (iii) necessary transportation for resident pupils with 16.16 disabilities required by sections 120.17, subdivision 4a, and 16.17 120.1701; 16.18 (iv) board and lodging for pupils with disabilities in a 16.19 district maintaining special classes; 16.20 (v) transportation from one educational facility to another 16.21 within the district for resident pupils enrolled on a 16.22 shared-time basis in educational programs, and necessary 16.23 transportation required by sections 120.17, subdivision 9, and 16.24 120.1701, for resident pupils with disabilities who are provided 16.25 special instruction and services on a shared-time basis; 16.26 (vi) transportation for resident pupils with disabilities 16.27 to and from board and lodging facilities when the pupil is 16.28 boarded and lodged for educational purposes; and 16.29 (vii) services described in clauses (i) to (vi), when 16.30 provided for pupils with disabilities in conjunction with a 16.31 summer instructional program that relates to the pupil's 16.32 individual education plan or in conjunction with a learning year 16.33 program established under section 121.585. 16.34 (5) "Nonpublic nonregular transportation" is: 16.35 (i) transportation from one educational facility to another 16.36 within the district for resident pupils enrolled on a 17.1 shared-time basis in educational programs, excluding 17.2 transportation for nonpublic pupils with disabilities under 17.3 clause (4); 17.4 (ii) transportation within district boundaries between a 17.5 nonpublic school and a public school or a neutral site for 17.6 nonpublic school pupils who are provided pupil support services 17.7 pursuant to section 123.935; and 17.8 (iii) late transportation home from school or between 17.9 schools within a district for nonpublic school pupils involved 17.10 in after-school activities. 17.11(d)(c) "Mobile unit" means a vehicle or trailer designed 17.12 to provide facilities for educational programs and services, 17.13 including diagnostic testing, guidance and counseling services, 17.14 and health services. A mobile unit located off nonpublic school 17.15 premises is a neutral site as defined in section 123.932, 17.16 subdivision 9. 17.17(e) "Current year" means the school year for which aid will17.18be paid.17.19(f) "Base year" means the second school year preceding the17.20school year for which aid will be paid.17.21(g) "Base cost" means the ratio of:17.22(1) the sum of the authorized cost in the base year for17.23regular transportation as defined in paragraph (b) plus the17.24actual cost in the base year for excess transportation as17.25defined in paragraph (c);17.26(2) to the sum of the number of weighted FTE's in the17.27regular and excess categories in the base year.17.28(h) "Pupil weighting factor" for the excess transportation17.29category for a school district means the lesser of one, or the17.30result of the following computation:17.31(1) Divide the square mile area of the school district by17.32the number of FTE's in the regular and excess categories in the17.33base year.17.34(2) Raise the result in clause (1) to the one-fifth power.17.35(3) Divide four-tenths by the result in clause (2).17.36The pupil weighting factor for the regular transportation18.1category is one.18.2(i) "Weighted FTE's" means the number of FTE's in each18.3transportation category multiplied by the pupil weighting factor18.4for that category.18.5(j) "Sparsity index" for a school district means the18.6greater of .005 or the ratio of the square mile area of the18.7school district to the sum of the number of weighted FTE's by18.8the district in the regular and excess categories in the base18.9year.18.10(k) "Density index" for a school district means the greater18.11of one or the result obtained by subtracting the product of the18.12district's sparsity index times 20 from two.18.13(l) "Contract transportation index" for a school district18.14means the greater of one or the result of the following18.15computation:18.16(1) Multiply the district's sparsity index by 20.18.17(2) Select the lesser of one or the result in clause (1).18.18(3) Multiply the district's percentage of regular FTE's in18.19the current year using vehicles that are not owned by the school18.20district by the result in clause (2).18.21(m) "Adjusted predicted base cost" means the predicted base18.22cost as computed in subdivision 3a as adjusted under subdivision18.237a.18.24(n) "Regular transportation allowance" means the adjusted18.25predicted base cost, inflated and adjusted under subdivision 7b.18.26 Sec. 12. Minnesota Statutes 1996, section 124.225, 18.27 subdivision 7f, is amended to read: 18.28 Subd. 7f. [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 18.29 district shall reserve an amount equal to the greater of $500 18.30 or$1.50$1.56 times the number of fund balance pupil units, for 18.31 that school year to provide student transportation safety 18.32 programs under section 123.799. This revenue may only be used 18.33 if the district complies with the reporting requirements of 18.34 section 123.7991, 123.805, 169.452, 169.4582, or 171.321, 18.35 subdivision 5. 18.36 Sec. 13. Minnesota Statutes 1996, section 124.225, 19.1 subdivision 13, is amended to read: 19.2 Subd. 13. [TARGETED NEEDS TRANSPORTATION REVENUE.] A 19.3 district's targeted needs transportation revenue for the 19.4 1996-1997 andlater1997-1998 school years equals the sum of the 19.5 special programs transportation revenue according to subdivision 19.6 14, the integration transportation revenue according to 19.7 subdivision 15, and the nonpublic pupil transportationrevenue19.8 aid according to subdivision 16. 19.9 Sec. 14. Minnesota Statutes 1996, section 124.225, 19.10 subdivision 14, is amended to read: 19.11 Subd. 14. [SPECIAL PROGRAMS TRANSPORTATION REVENUE.] A 19.12 district's special programs transportation revenue for the 19.13 1996-1997 andlater1997-1998 school years equals the sum of: 19.14 (a) the district's actual cost in the base year for 19.15 transportation services for children with disabilities under 19.16section 124.223, subdivisions 4, 5, 7, and 8subdivision 1, 19.17 paragraph (b), clause (4), times the ratio of the district's 19.18 average daily membership for the current school year to the 19.19 district's average daily membership for the base year; plus 19.20 (b) the greater of zero or 80 percent of the difference 19.21 between: 19.22 (1) the district's actual cost in the current year for 19.23 transportation services for children with disabilities under 19.24section 124.223, subdivisions 4, 5, 7, and 8subdivision 1, 19.25 paragraph (b), clause (4); and 19.26 (2) the amount computed in paragraph (a). 19.27 Sec. 15. Minnesota Statutes 1996, section 124.225, 19.28 subdivision 15, is amended to read: 19.29 Subd. 15. [INTEGRATION TRANSPORTATION REVENUE.] A 19.30 district's integration transportation revenue for the 1996-1997 19.31 andlater1997-1998 school years equals the following amounts: 19.32 (a) for independent school district No. 709, Duluth, $4 19.33 times the actual pupil units for the school year; 19.34 (b) for independent school district No. 625, St. Paul, $73 19.35 times the actual pupil units for the school year; and 19.36 (c) for special school district No. 1, Minneapolis, $158 20.1 times the actual pupil units for the school year. 20.2 Sec. 16. Minnesota Statutes 1996, section 124.225, 20.3 subdivision 16, is amended to read: 20.4 Subd. 16. [NONPUBLIC PUPIL TRANSPORTATIONREVENUEAID.] 20.5 (a) A district's nonpublic pupil transportationrevenueaid for 20.6 the 1996-1997 and later school years for transportation services 20.7 for nonpublic school pupils according to sections 123.39, 123.76 20.8 to 123.78,124.223,and124.226this section, equals the sum of 20.9 the amounts computed in paragraphs (b) and (c). Thisrevenue20.10 aid does not limit the obligation to transport pupils under 20.11 sections 123.76 to 123.79. 20.12 (b) For regular and excess transportation according to 20.13section 124.225,subdivision 1, paragraph(c)(b), clauses (1) 20.14 and(3)(2), an amount equal to the product of: 20.15 (1) the district's actual expenditure per pupil transported 20.16 in the regular and excess transportation categories during the 20.17 second preceding school year; times 20.18 (2) the number of nonpublic school pupils residing in the 20.19 district who receive regular or excess transportation service or 20.20 reimbursement for the current school year; times 20.21 (3) the ratio of the formula allowance pursuant to section 20.22 124A.22, subdivision 2, for the current school year to the 20.23 formula allowance pursuant to section 124A.22, subdivision 2, 20.24 for the second preceding school year. 20.25 (c) For nonpublic nonregular transportation according to 20.26section 124.225,subdivision 1, paragraph(c)(b), 20.27 clause(2)(5),excluding transportation services for children20.28with disabilities under section 124.223, subdivisions 4, 5, 7,20.29and 8, and late activity transportation according to section20.30124.226, subdivision 9,an amount equal to the product of: 20.31 (1) the district's actual expenditure for nonpublic 20.32 nonregularand late activitytransportationfor nonpublic school20.33pupilsduring the second preceding school year; times 20.34 (2) the ratio of the formula allowance pursuant to section 20.35 124A.22, subdivision 2, for the current school year to the 20.36 formula allowance pursuant to section 124A.22, subdivision 2, 21.1 for the second preceding school year. 21.2 (d) Notwithstanding the amount of the formula allowance for 21.3 fiscal years 1997 and 1998 in section 124A.22, subdivision 2, 21.4 the commissioner shall use the amount of the formula 21.5 allowance for the current year less $300 in determining the 21.6 nonpublic pupil transportation revenue in paragraphs (b) and (c) 21.7 for fiscal years 1997 and 1998, and the amount of the formula 21.8 allowance for the current year less $84 in determining the 21.9 nonpublic pupil transportation aid in paragraphs (b) and (c) for 21.10 fiscal years 1999 and 2000. 21.11 Sec. 17. Minnesota Statutes 1996, section 124.225, 21.12 subdivision 17, is amended to read: 21.13 Subd. 17. [TARGETED NEEDS TRANSPORTATION AID.] (a) For 21.14 fiscal years 1997 and 1998, a district's targeted needs 21.15 transportation aid is the difference between its targeted needs 21.16 transportation revenue under subdivision 13 and its targeted 21.17 needs transportation levy under section 124.226, subdivision 10. 21.18 (b) If a district does not levy the entire amount 21.19 permitted, aid must be reduced in proportion to the actual 21.20 amount levied. 21.21 Sec. 18. Minnesota Statutes 1996, section 124.226, 21.22 subdivision 10, is amended to read: 21.23 Subd. 10. [TARGETED NEEDS TRANSPORTATION LEVY.] A school 21.24 district may make a levy for targeted needs transportation costs 21.25 according to this subdivision. The amount of the levy shall be 21.26 the result of the following computation: 21.27 (1) For fiscalyearyears 1997 andlater1998, targeted 21.28 needs transportation levy equalization revenue equals 28 percent 21.29 of the sum of the district's special programs transportation 21.30 revenue under section 124.225, subdivision 14, and the 21.31 district's integration transportation revenue under section 21.32 124.225, subdivision 15. 21.33 (2) The targeted needs transportation levy equals the 21.34 result in clause (1) times the lesser of one or the ratio of (i) 21.35 the quotient derived by dividing the adjusted net tax capacity 21.36 of the district for the year before the year the levy is 22.1 certified by the actual pupil units in the district for the 22.2 school year to which the levy is attributable, to (ii) $3,540. 22.3 Sec. 19. Minnesota Statutes 1996, section 124.2445, is 22.4 amended to read: 22.5 124.2445 [PURCHASE OF CERTAIN EQUIPMENT.] 22.6 The board of a school district may issue certificates of 22.7 indebtedness or capital notes subject to the school district 22.8 debt limits to purchase vehicles, computers, telephone systems, 22.9 cable equipment, photocopy and office equipment, technological 22.10 equipment for instruction, and other capital equipment having an 22.11 expected useful life at least as long as the terms of the 22.12 certificates or notes. The certificates or notes must be 22.13 payable in not more than five years and must be issued on the 22.14 terms and in the manner determined by the board. The 22.15 certificates or notes may be issued by resolution and without 22.16 the requirement for an election. The certificates or notes are 22.17 general obligation bonds for purposes of section 124.755. A tax 22.18 levy must be made for the payment of the principal and interest 22.19 on the certificates or notes, in accordance with section 475.61, 22.20 as in the case of bonds. The sum of the tax levies under this 22.21 section and section 124.2455 for each year must not exceed the 22.22 amount of the district's total operating capital revenue for the 22.23 year the initial debt service levies are certified. The 22.24 district's general education levy for each year must be reduced 22.25 by the sum of (1) the amount of the tax levies for debt service 22.26 certified for each year for payment of the principal and 22.27 interest on the certificates or notes as required by section 22.28 475.61., and (2) any excess amount in the debt redemption fund 22.29 used to retire certificates or notes issued after February 1, 22.30 1997. A district using an excess amount in the debt redemption 22.31 fund to retire the certificates or notes shall report the amount 22.32 used for this purpose to the commissioner by July 15 of the 22.33 following fiscal year. A district having an outstanding capital 22.34 loan under section 124.431 or an outstanding debt service loan 22.35 under section 124.42 must not use an excess amount in the debt 22.36 redemption fund to retire the certificates or notes. 23.1 Sec. 20. Minnesota Statutes 1996, section 124.2455, is 23.2 amended to read: 23.3 124.2455 [BONDS FOR CERTAIN CAPITAL FACILITIES.] 23.4 (a) In addition to other bonding authority, with approval 23.5 of the commissioner, a school district may issue general 23.6 obligation bonds for certain capital projects under this 23.7 section. The bonds must be used only to make capital 23.8 improvements including: 23.9 (1) under section 124A.22, subdivision 11, total operating 23.10 capital revenue uses specified in clauses (4), (6), (7), (8), 23.11 (9), and (10); 23.12 (2) the cost of energy modifications; 23.13 (3) improving handicap accessibility to school buildings; 23.14 and 23.15 (4) bringing school buildings into compliance with life and 23.16 safety codes and fire codes. 23.17 (b) Before a district issues bonds under this subdivision, 23.18 it must publish notice of the intended projects, the amount of 23.19 the bond issue, and the total amount of district indebtedness. 23.20 (c) A bond issue tentatively authorized by the board under 23.21 this subdivision becomes finally authorized unless a petition 23.22 signed by more than 15 percent of the registered voters of the 23.23 school district is filed with the school board within 30 days of 23.24 the board's adoption of a resolution stating the board's 23.25 intention to issue bonds. The percentage is to be determined 23.26 with reference to the number of registered voters in the school 23.27 district on the last day before the petition is filed with the 23.28 school board. The petition must call for a referendum on the 23.29 question of whether to issue the bonds for the projects under 23.30 this section. The approval of 50 percent plus one of those 23.31 voting on the question is required to pass a referendum 23.32 authorized by this section. 23.33 (d) The bonds must be paid off within ten years of 23.34 issuance. The bonds must be issued in compliance with chapter 23.35 475, except as otherwise provided in this section. A tax levy 23.36 must be made for the payment of principal and interest on the 24.1 bonds in accordance with section 475.61. The sum of the tax 24.2 levies under this section and section 124.2455 for each year 24.3 must not exceed the amount of the district's total operating 24.4 capital revenue for the year the initial debt service levies are 24.5 certified. The district's general education levy for each year 24.6 must be reduced by the sum of (1) the amount of the tax levies 24.7 for debt service certified for each year for payment of the 24.8 principal and interest on the bonds., and (2) any excess amount 24.9 in the debt redemption fund used to retire bonds issued after 24.10 February 1, 1997. A district using an excess amount in the debt 24.11 redemption fund to retire the bonds shall report the amount used 24.12 for this purpose to the commissioner by July 15 of the following 24.13 fiscal year. A district having an outstanding capital loan 24.14 under section 124.431 or an outstanding debt service loan under 24.15 section 124.42 must not use an excess amount in the debt 24.16 redemption fund to retire the bonds. 24.17 (e) Notwithstanding paragraph (d), bonds issued by a 24.18 district within the first five years following voter approval of 24.19 a combination according to section 122.243, subdivision 2, must 24.20 be paid off within 20 years of issuance. All the other 24.21 provisions and limitation of paragraph (d) apply. 24.22 Sec. 21. Minnesota Statutes 1996, section 124.248, 24.23 subdivision 1a, is amended to read: 24.24 Subd. 1a. [TRANSPORTATION REVENUE.] Transportation revenue 24.25 shall be paid to a charter school that provides transportation 24.26 services according to section 120.064, subdivision 15, according 24.27 to this subdivision. Transportation aid shall equal 24.28 transportation revenue. 24.29 (a) In addition to the revenue under subdivision 1, a 24.30 charter school providing transportation services shall receive 24.31 general education aid for each pupil unit equal to the sum of 24.32$170$176, plus the transportation sparsity allowance for the 24.33 school district in which the charter school is located, plus the 24.34 transportation transition allowance for the school district in 24.35 which the charter school is located. 24.36 (b) For the first two years that a charter school is 25.1 providing transportation services, the adjusted specialprograms25.2transportationeducation base revenueequalsaccording to 25.3 section 124.3202, subdivision 3, shall be increased by the 25.4 amount of the charter school's actual cost in the current school 25.5 year for transportation services for children with disabilities 25.6 under section124.223, subdivisions 4, 5, 7, and 8. For the25.7third year of transportation services and later fiscal years,25.8the special programs transportation revenue shall be computed25.9according to section124.225, subdivision141, paragraph (b), 25.10 clause (4). 25.11 Sec. 22. Minnesota Statutes 1996, section 124.248, 25.12 subdivision 3, is amended to read: 25.13 Subd. 3. [SPECIAL EDUCATIONAND LIMITED ENGLISH25.14PROFICIENCYAID.] Except as provided in subdivision 1a, 25.15 paragraph (b), special education aid shall be paid to a charter 25.16 school according to sections 124.3201 and 124.3202, as though it 25.17 were a school district. The charter school may charge tuition 25.18 to the district of residence as provided in section 120.17, 25.19 subdivision 4.Limited English proficiency programs aid shall25.20be paid to a charter school according to section 124.273 as25.21though it were a school district.The charter school shall 25.22 allocate its special education levy equalization revenue to the 25.23 resident districts of the pupils attending the charter school. 25.24 The districts of residence shall levy as though they were 25.25 participating in a cooperative, as provided in section 124.321, 25.26 subdivision 3. 25.27 Sec. 23. Minnesota Statutes 1996, section 124.42, 25.28 subdivision 4, is amended to read: 25.29 Subd. 4. Each district receiving a debt service loan shall 25.30 levy for debt service in that year and each year thereafter, 25.31 until all its debts to the fund are paid, (a) the amount of its 25.32 maximum effort debt service levy, or (b) the amount of its 25.33 required debt service levy less the amount of any debt service 25.34 loan in that year, whichever is greater.Whenever the maximum25.35effort debt service levy is greater the district shall remit to25.36the commissioner, within ten days after its receipt of the last26.1regular tax distribution in the year in which it is collected,26.2that portion of the maximum effort debt service tax collections,26.3including penalties and interest, which exceeds the required26.4debt service levy.The district shall remit payments to the 26.5 commissioner according to section 124.45. On or before 26.6 September130 in each year the commissioner shall notify the 26.7 county auditor of each county containing taxable property 26.8 situated within the school district of the amount of the maximum 26.9 effort debt service levy of the district for that year, and said 26.10 county auditor or auditors shall extend upon the tax rolls an ad 26.11 valorem tax upon all taxable property within the district in the 26.12 aggregate amount so certified. 26.13 Sec. 24. Minnesota Statutes 1996, section 124.431, 26.14 subdivision 11, is amended to read: 26.15 Subd. 11. [CONTRACT.] (a) Each capital loan must be 26.16 evidenced by a contract between the school district and the 26.17 state acting through the commissioner. The contract must 26.18 obligate the state to reimburse the district, from the maximum 26.19 effort school loan fund, for eligible capital expenses for 26.20 construction of the facility for which the loan is granted, an 26.21 amount computed as provided in subdivision 8. The commissioner 26.22 must receive from the school district a certified resolution of 26.23 the school board estimating the costs of construction and 26.24 reciting that contracts for construction of the facilities for 26.25 which the loan is granted have been awarded and that bonds of 26.26 the district have been issued and sold in the amount necessary 26.27 to pay all estimated costs of construction in excess of the 26.28 amount of the loan. The contract must obligate the district to 26.29 repay the loan out of the excesses of its maximum effort debt 26.30 service levy over its required debt service levy, including 26.31 interest at a rate equal to the weighted average annual rate 26.32 payable on Minnesota state school loan bonds issued for the 26.33 project and disbursed to the districts on a reimbursement basis, 26.34 but in no event less than 3-1/2 percent per year on the 26.35 principal amount from time to time unpaid. 26.36 (b) The district shall each year, as long as it is indebted 27.1 to the state, levy for debt service(a)(i) the amount of its 27.2 maximum effort debt service levy or(b)(ii) the amount of its 27.3 required debt service levy, whichever is greater, except as the 27.4 required debt service levy may be reduced by a loan under 27.5 section 124.42.On November 20 of each year each district27.6having an outstanding capital loan shall compute the excess27.7amount in the debt redemption fund. The commissioner shall27.8prescribe the form and calculation to be used in computing the27.9excess amount. A completed copy of this form shall be sent to27.10the commissioner before December 1 of each year. The27.11commissioner may recompute the excess amount and shall promptly27.12notify the district of the recomputed amount. On December 15 of27.13each year, the district shall remit to the commissioner an27.14amount equal to the excess amount in the debt redemption fund.27.15When the maximum effort debt service levy is greater, the27.16district shall remit to the commissioner within ten days after27.17its receipt of the last regular tax distribution in each year,27.18that part of the debt service tax collections, including27.19penalties and interest that exceeded the required debt service27.20levy.The district shall remit payments to the commissioner 27.21 according to section 124.45. 27.22 (c) The commissioner shall supervise the collection of 27.23 outstanding accounts due the fund and may, by notice to the 27.24 proper county auditor, require the maximum levy to be made as 27.25 required in this subdivision. Interest on capital loans must be 27.26 paid on December 15 of the year after the year the loan is 27.27 granted and annually in later years. On or before September127.28 30 in each year the commissioner shall notify the county auditor 27.29 of each county containing taxable property situated within the 27.30 school district of the amount of the maximum effort debt service 27.31 levy of the district for that year. The county auditor or 27.32 auditors shall extend upon the tax rolls an ad valorem tax upon 27.33 all taxable property within the district in the aggregate amount 27.34 so certified. 27.35 Sec. 25. Minnesota Statutes 1996, section 124.45, is 27.36 amended to read: 28.1 124.45 [PAYMENT AND APPLICATIONS OF PAYMENT.] 28.2 Subdivision 1. [PAYMENT.] (a) On November 20 of each year, 28.3 each district having an outstanding capital loan or debt service 28.4 loan shall compute the excess amount in the debt redemption 28.5 fund. The commissioner shall prescribe the form and calculation 28.6 to be used in computing the excess amount. A completed copy of 28.7 this form shall be sent to the commissioner before December 1 of 28.8 each year. The commissioner may recompute the excess amount and 28.9 shall promptly notify the district of the recomputed amount. 28.10 (b) On December 15 of each year, the district shall remit 28.11 to the commissioner an amount equal to the greater of: 28.12 (i) the excess amount in the debt redemption fund; or 28.13 (ii) the amount by which the maximum effort debt service 28.14 levy exceeds the required debt service levy for that calendar 28.15 year. 28.16 Any late payments shall be assessed an interest charge using the 28.17 interest rates specified for the debt service notes and capital 28.18 loan contracts. 28.19 (c) If a payment required under the maximum effort school 28.20 aid law is not made within 30 days, the commissioner may reduce 28.21 any subsequent payments due the district under chapters 124 and 28.22 124A by the amount due, after providing written notice to the 28.23 district. 28.24 Subd. 2. [APPLICATION OF PAYMENTS.] The commissioner shall 28.25 apply payments receivedfrom collections of maximum effort debt28.26service levies in excess of required debt service levies of a28.27district on its debt service notes and capital loan28.28contractsunder the maximum effort school aid law and aids 28.29 withheld according to subdivision 1, paragraph (b), as follows: 28.30 First, to payment of interest accrued on its notes, if any; 28.31 second, to interest on its contracts, if any; third, toward 28.32 principal of its notes, if any; and last, toward principal of 28.33 its contracts, if any. While more than one note or more than 28.34 one contract is held, priority of payment of interest shall be 28.35 given to the one of earliest date, and after interest accrued on 28.36 all notes is paid, similar priority shall be given in the 29.1 application of any remaining amount to the payment of 29.2 principal. In any year when the receipts from a district are 29.3 not sufficient to pay the interest accrued on any of its notes 29.4 or contracts, the deficiency shall be added to the principal, 29.5 and the commissioner shall notify the district and each county 29.6 auditor concerned of the new amount of principal of the note or 29.7 contract. 29.8 Sec. 26. Minnesota Statutes 1996, section 124.83, 29.9 subdivision 4, is amended to read: 29.10 Subd. 4. [HEALTH AND SAFETY LEVY.] To receive health and 29.11 safety revenue, a district may levy an amount equal to the 29.12 district's health and safety revenue as defined in subdivision 3 29.13 multiplied by the lesser of one, or the ratio of the quotient 29.14 derived by dividing the adjusted net tax capacity of the 29.15 district for the year preceding the year the levy is certified 29.16 by the actual pupil units in the district for the school year to 29.17 which the levy is attributable, to$4,707.50$4,883. 29.18 Sec. 27. Minnesota Statutes 1996, section 124.91, 29.19 subdivision 1, is amended to read: 29.20 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When a 29.21 district finds it economically advantageous to rent or lease a 29.22 building or land for any instructional purposes or for school 29.23 storage or furniture repair, and it determines that 29.24 the operating capitalexpenditure facilities revenuesrevenue 29.25 authorized undersections 124.243 andsection 124A.22, 29.26 subdivision 10, are insufficient for this purpose, it may apply 29.27 to the commissioner for permission to make an additional capital 29.28 expenditure levy for this purpose. An application for 29.29 permission to levy under this subdivision must contain financial 29.30 justification for the proposed levy, the terms and conditions of 29.31 the proposed lease, and a description of the space to be leased 29.32 and its proposed use. 29.33 (b) The criteria for approval of applications to levy under 29.34 this subdivision must include: the reasonableness of the price, 29.35 the appropriateness of the space to the proposed activity, the 29.36 feasibility of transporting pupils to the leased building or 30.1 land, conformity of the lease to the laws and rules of the state 30.2 of Minnesota, and the appropriateness of the proposed lease to 30.3 the space needs and the financial condition of the district. 30.4 The commissioner must not authorize a levy under this 30.5 subdivision in an amount greater than the cost to the district 30.6 of renting or leasing a building or land for approved purposes. 30.7 The proceeds of this levy must not be used for custodial or 30.8 other maintenance services. A district may not levy under this 30.9 subdivision for the purpose of leasing or renting a 30.10 district-owned building to itself. 30.11 (c) For agreements finalized after July 1, 1997, a district 30.12 may not levy under this subdivision for the purpose of: (i) 30.13 leasing a building or land with an option to purchase under 30.14 section 465.71; or (ii) leasing a building or land used 30.15 primarily for purposes other than special or alternative 30.16 education instruction from a cooperative unit of government, as 30.17 defined in section 123.35, subdivision 19b, paragraph (d), that 30.18 the cooperative unit is leasing with an option to purchase under 30.19 section 465.71, if the commissioner determines that the payment 30.20 required for the purchase at the end of the term of the lease is 30.21 less than the projected market value of the property. 30.22 Sec. 28. Minnesota Statutes 1996, section 124.912, 30.23 subdivision 1, is amended to read: 30.24 Subdivision 1. [STATUTORY OBLIGATIONS.](a)A school 30.25 district may levy: 30.26 (1) the amount authorized for liabilities of dissolved 30.27 districts pursuant to section 122.45; 30.28 (2) the amounts necessary to pay the district's obligations 30.29 under section 268.06, subdivision 25;and the amounts necessary 30.30 to pay for job placement services offered to employees who may 30.31 become eligible for benefits pursuant to section 268.08 for the 30.32 fiscal year the levy is certified; 30.33 (3) the amounts necessary to pay the district's obligations 30.34 under section 127.05; 30.35 (4) the amounts authorized by section 122.531; 30.36 (5) the amounts necessary to pay the district's obligations 31.1 under section 122.533; and 31.2 (6) for severance pay required by sections 120.08, 31.3 subdivision 3, and 122.535, subdivision 6. 31.4(b) Each year, a member district of an education district31.5that levies under this subdivision must transfer the amount of31.6revenue certified under paragraph (b) to the education district31.7board according to this subdivision. By June 20 and November 3031.8of each year, an amount must be transferred equal to:31.9(1) 50 percent times31.10(2) the amount certified in paragraph (b) minus homestead31.11and agricultural credit aid allocated for that levy according to31.12section 273.1398, subdivision 6.31.13 Sec. 29. Minnesota Statutes 1996, section 124.912, 31.14 subdivision 2, is amended to read: 31.15 Subd. 2. [DESEGREGATION.] Each year, special school 31.16 district No. 1, Minneapolis, may levy an amount not to exceed 31.17 $197 times its actual pupil units for that fiscal year; 31.18 independent school district No. 625, St. Paul, may levy an 31.19 amount not to exceed $197 times its actual pupil units for that 31.20 fiscal year; and independent school district No. 709, Duluth, 31.21 may levy an amount not to exceed the sum of $660,000 and the 31.22 amount raised by a tax rate of 2.0 percent times the adjusted 31.23 net tax capacity of the district.Notwithstanding section31.24121.904, the entire amount of this levy shall be recognized as31.25revenue for the fiscal year in which the levy is certified.31.26This levy shall not be considered in computing the aid reduction31.27under section 124.155.31.28 Sec. 30. Minnesota Statutes 1996, section 124.912, 31.29 subdivision 3, is amended to read: 31.30 Subd. 3. [RULE COMPLIANCE.] Each year a district that is 31.31 required to implement a plan according to the requirements of 31.32 Minnesota Rules, parts 3535.0200 to 3535.2200, may levy an 31.33 amount not to exceed a net tax rate of 2.0 percent times the 31.34 adjusted net tax capacity of the district for taxes payable in 31.35 1991 and thereafter. A district that levies according to 31.36 subdivision 2 may not levy according to this subdivision. 32.1Notwithstanding section 121.904, the entire amount of this levy32.2shall be recognized as revenue for the fiscal year in which the32.3levy is certified. This levy shall not be considered in32.4computing the aid reduction under section 124.155.32.5 Sec. 31. Minnesota Statutes 1996, section 124.916, 32.6 subdivision 1, is amended to read: 32.7 Subdivision 1. [HEALTH INSURANCE.] (a) A school district 32.8 may levy the amount necessary to make employer contributions for 32.9 insurance for retired employees under this 32.10 subdivision.Notwithstanding section 121.904, 50 percent of the32.11amount levied shall be recognized as revenue for the fiscal year32.12in which the levy is certified. This levy shall not be32.13considered in computing the aid reduction under section 124.155.32.14 (b) The school board of a joint vocational technical 32.15 district formed under sections 136C.60 to 136C.69 and the school 32.16 board of a school district may provide employer-paid hospital, 32.17 medical, and dental benefits to a person who: 32.18 (1) is eligible for employer-paid insurance under 32.19 collective bargaining agreements or personnel plans in effect on 32.20 June 30, 1992; 32.21 (2) has at least 25 years of service credit in the public 32.22 pension plan of which the person is a member on the day before 32.23 retirement or, in the case of a teacher, has a total of at least 32.24 25 years of service credit in the teachers retirement 32.25 association, a first-class city teacher retirement fund, or any 32.26 combination of these; 32.27 (3) upon retirement is immediately eligible for a 32.28 retirement annuity; 32.29 (4) is at least 55 and not yet 65 years of age; and 32.30 (5) retires on or after May 15, 1992, and before July 21, 32.31 1992. 32.32 A school board paying insurance under this subdivision may 32.33 not exclude any eligible employees. 32.34 (c) An employee who is eligible both for the health 32.35 insurance benefit under this subdivision and for an early 32.36 retirement incentive under a collective bargaining agreement or 33.1 personnel plan established by the employer must select either 33.2 the early retirement incentive provided under the collective 33.3 bargaining agreement personnel plan or the incentive provided 33.4 under this subdivision, but may not receive both. For purposes 33.5 of this subdivision, a person retires when the person terminates 33.6 active employment and applies for retirement benefits. The 33.7 retired employee is eligible for single and dependent coverages 33.8 and employer payments to which the person was entitled 33.9 immediately before retirement, subject to any changes in 33.10 coverage and employer and employee payments through collective 33.11 bargaining or personnel plans, for employees in positions 33.12 equivalent to the position from which the employee retired. The 33.13 retired employee is not eligible for employer-paid life 33.14 insurance. Eligibility ceases when the retired employee attains 33.15 the age of 65, or when the employee chooses not to receive the 33.16 retirement benefits for which the employee has applied, or when 33.17 the employee is eligible for employer-paid health insurance from 33.18 a new employer. Coverages must be coordinated with relevant 33.19 health insurance benefits provided through the federally 33.20 sponsored Medicare program. 33.21 (d) Unilateral implementation of this section by a public 33.22 employer is not an unfair labor practice for purposes of chapter 33.23 179A. The authority provided in this subdivision for an 33.24 employer to pay health insurance costs for certain retired 33.25 employees is not subject to the limits in section 179A.20, 33.26 subdivision 2a. 33.27 (e) If a school district levies according to this 33.28 subdivision, it may not also levy according to section 122.531, 33.29 subdivision 9, for eligible employees. 33.30 Sec. 32. Minnesota Statutes 1996, section 124.916, 33.31 subdivision 2, is amended to read: 33.32 Subd. 2. [RETIRED EMPLOYEE HEALTH BENEFITS.] For taxes 33.33 payable in 1996, 1997, 1998, and 1999 only, a school district 33.34 may levy an amount up to the amount the district is required by 33.35 the collective bargaining agreement in effect on March 30, 1992, 33.36 to pay for health insurance or unreimbursed medical expenses for 34.1 licensed and nonlicensed employees who have terminated services 34.2 in the employing district and withdrawn from active teaching 34.3 service or other active service, as applicable, before July 1, 34.4 1992. The total amount of the levy each year may not exceed 34.5 $300,000. 34.6Notwithstanding section 121.904, 50 percent of the proceeds34.7of this levy shall be recognized in the fiscal year in which it34.8is certified.34.9 Sec. 33. Minnesota Statutes 1996, section 124.916, 34.10 subdivision 3, is amended to read: 34.11 Subd. 3. [RETIREMENT LEVIES.] (1) In addition to the 34.12 excess levy authorized in 1976 any district within a city of the 34.13 first class which was authorized in 1975 to make a retirement 34.14 levy under Minnesota Statutes 1974, section 275.127 and chapter 34.15 422A may levy an amount per pupil unit which is equal to the 34.16 amount levied in 1975 payable 1976, under Minnesota Statutes 34.17 1974, section 275.127 and chapter 422A, divided by the number of 34.18 pupil units in the district in 1976-1977. 34.19 (2) In 1979 and each year thereafter, any district which 34.20 qualified in 1976 for an extra levy under paragraph (1) shall be 34.21 allowed to levy the same amount as levied for retirement in 1978 34.22 under this clause reduced each year by ten percent of the 34.23 difference between the amount levied for retirement in 1971 34.24 under Minnesota Statutes 1971, sections 275.127 and 422.01 to 34.25 422.54 and the amount levied for retirement in 1975 under 34.26 Minnesota Statutes 1974, section 275.127 and chapter 422A. 34.27 (3) In 1991 and each year thereafter, a district to which 34.28 this subdivision applies may levy an additional amount required 34.29 for contributions to the Minneapolis employees retirement fund 34.30 as a result of the maximum dollar amount limitation on state 34.31 contributions to the fund imposed under section 422A.101, 34.32 subdivision 3. The additional levy shall not exceed the most 34.33 recent amount certified by the board of the Minneapolis 34.34 employees retirement fund as the district's share of the 34.35 contribution requirement in excess of the maximum state 34.36 contribution under section 422A.101, subdivision 3. 35.1 (4) For taxes payable in 1994 and thereafter, special 35.2 school district No. 1, Minneapolis, and independent school 35.3 district No. 625, St. Paul, may levy for the increase in the 35.4 employer retirement fund contributions, under Laws 1992, chapter 35.5 598, article 5, section 1.Notwithstanding section 121.904, the35.6entire amount of this levy may be recognized as revenue for the35.7fiscal year in which the levy is certified. This levy shall not35.8be considered in computing the aid reduction under section35.9124.155.35.10 (5) If the employer retirement fund contributions under 35.11 section 354A.12, subdivision 2a, are increased for fiscal year 35.12 1994 or later fiscal years, special school district No. 1, 35.13 Minneapolis, and independent school district No. 625, St. Paul, 35.14 may levy in payable 1994 or later an amount equal to the amount 35.15 derived by applying the net increase in the employer retirement 35.16 fund contribution rate of the respective teacher retirement fund 35.17 association between fiscal year 1993 and the fiscal year 35.18 beginning in the year after the levy is certified to the total 35.19 covered payroll of the applicable teacher retirement fund 35.20 association.Notwithstanding section 121.904, the entire amount35.21of this levy may be recognized as revenue for the fiscal year in35.22which the levy is certified. This levy shall not be considered35.23in computing the aid reduction under section 124.155.If an 35.24 applicable school district levies under this paragraph, they may 35.25 not levy under paragraph (4). 35.26 (6) In addition to the levy authorized under paragraph (5), 35.27 special school district No. 1, Minneapolis, may also levy 35.28 payable in 1997 or later an amount equal to the contributions 35.29 under section 423A.02, subdivision 3, and may also levy in 35.30 payable 1994 or later an amount equal to the state aid 35.31 contribution under section 354A.12, subdivision 3b. Independent 35.32 school district No. 625, St. Paul, may levy payable in 1997 or 35.33 later an amount equal to the supplemental contributions under 35.34 section 423A.02, subdivision 3.Notwithstanding section35.35121.904, the entire amount of these levies may be recognized as35.36revenue for the fiscal year in which the levy is certified.36.1These levies shall not be considered in computing the aid36.2reduction under section 124.155.36.3 Sec. 34. Minnesota Statutes 1996, section 124.918, 36.4 subdivision 6, is amended to read: 36.5 Subd. 6. [ADJUSTMENTS FOR LAW CHANGES.] Whenever a change 36.6 enacted in law changes the levy authority for a school district 36.7 or an intermediate school district for a fiscal year after the 36.8 levy for that fiscal year has been certified by the district 36.9 under section 275.07, the department of children, families, and 36.10 learning shall adjust the next levy certified by the district by 36.11 the amount of the change in levy authority for that fiscal year 36.12 resulting from the change. Notwithstanding section 121.904, the 36.13 entire amountfor fiscal year 1992 and 50 percent for fiscal36.14years thereafterof the levy adjustment must be recognized as 36.15 revenue in the fiscal year the levy is certified, if sufficient 36.16 levy resources are available under generally accepted accounting 36.17 principles in the district fund where the adjustment is to 36.18 occur. School districts that do not have sufficient levy 36.19 resources available in the fund where the adjustment is to occur 36.20 shall recognize in the fiscal year the levy is certified an 36.21 amount equal to the levy resources available. The remaining 36.22 adjustment amount shall be recognized as revenue in the fiscal 36.23 year after the levy is certified. 36.24 Sec. 35. Minnesota Statutes 1996, section 124.95, 36.25 subdivision 4, is amended to read: 36.26 Subd. 4. [EQUALIZED DEBT SERVICE LEVY.] To obtain debt 36.27 service equalization revenue, a district must levy an amount not 36.28 to exceed the district's debt service equalization revenue times 36.29 the lesser of one or the ratio of: 36.30 (1) the quotient derived by dividing the adjusted net tax 36.31 capacity of the district for the year before the year the levy 36.32 is certified by the actual pupil units in the district for the 36.33 school year ending in the year prior to the year the levy is 36.34 certified; to 36.35 (2)$4,707.50$4,883. 36.36 Sec. 36. Minnesota Statutes 1996, section 124.961, is 37.1 amended to read: 37.2 124.961 [DEBT SERVICE APPROPRIATION.] 37.3 (a)$30,054,000$35,348,000 in fiscal year 37.419961998,$28,162,000$37,770,000 in fiscal year19971999, 37.5 and$33,948,000$38,000,000 in fiscal year19982000 and each 37.6 year thereafter is appropriated from the general fund to the 37.7 commissioner of children, families, and learning for payment of 37.8 debt service equalization aid under section 124.95. The199837.9 2000 appropriation includes$4,970,000$34,200,000 for199737.10 1999 and$28,978,000$3,800,000 for19982000. 37.11 (b) The appropriations in paragraph (a) must be reduced by 37.12 the amount of any money specifically appropriated for the same 37.13 purpose in any year from any state fund. 37.14 Sec. 37. Minnesota Statutes 1996, section 124A.02, 37.15 subdivision 21, is amended to read: 37.16 Subd. 21. [SHARED TIME AID.] For fiscal year 1998, aid for 37.17 shared time pupils shall equal the formula allowance minus $300 37.18 times the full-time equivalent actual pupil units for shared 37.19 time pupils. For fiscal year 1999 and later, aid for shared 37.20 time pupils shall equal the formula allowance minus $176 times 37.21 the full-time equivalent actual pupil units for shared time 37.22 pupils. Aid for shared time pupils shall be in addition to any 37.23 other aid to which the district is otherwise entitled. Shared 37.24 time average daily membership shall not be used in the 37.25 computation of pupil units under section 124.17, subdivision 1, 37.26 for any purpose other than the computation of shared time aid 37.27 pursuant to subdivisions 20 to 22 and section 124A.034, 37.28 subdivisions 1 to 1b. 37.29 Sec. 38. Minnesota Statutes 1996, section 124A.029, 37.30 subdivision 1, is amended to read: 37.31 Subdivision 1. [REVENUE CONVERSION.] Except as provided 37.32 undersubdivisionsubdivisions 4 and 5, the referendum authority 37.33 under section 124A.03and the levy authority under section37.34124.912, subdivisions 2 and 3,of a school district must be 37.35 converted by the department according to this section. 37.36 Sec. 39. Minnesota Statutes 1996, section 124A.029, 38.1 subdivision 3, is amended to read: 38.2 Subd. 3. [RATE ADJUSTMENT.] The department shall adjust a 38.3 school district's referendum authority for a referendum approved 38.4 before July 1, 1991, excluding authority based on a dollar 38.5 amount,and the levy authority under section 124.912,38.6subdivisions 2 and 3,by multiplying the sum of the rates 38.7 authorized by a district under section 124A.03and the rates in38.8section 124.912, subdivisions 2 and 3,by the ratio determined 38.9 under subdivision 2 for the assessment year for which the 38.10 revenue is attributable. The adjusted rates for assessment year 38.11 1993 shall apply to later years for which the revenue is 38.12 authorized. 38.13 Sec. 40. Minnesota Statutes 1996, section 124A.029, is 38.14 amended by adding a subdivision to read: 38.15 Subd. 5. [PUPIL UNIT WEIGHTING ADJUSTMENT.] The department 38.16 shall convert the portion of each district's referendum 38.17 authority for fiscal year 1999 and later years that is based on 38.18 an allowance per pupil unit by multiplying the referendum 38.19 allowance according to section 124A.03, subdivision 1b, by the 38.20 ratio of the actual pupil units for fiscal year 1999, recomputed 38.21 using the pupil units weights in effect for fiscal year 1998 38.22 under section 124.17, subdivision 1, to the actual pupil units 38.23 for fiscal year 1999. 38.24 Sec. 41. Minnesota Statutes 1996, section 124A.03, 38.25 subdivision 1c, is amended to read: 38.26 Subd. 1c. [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 38.27 subdivision 1b, a district's referendum allowance must not 38.28 exceed the greater of: 38.29 (1) the district's referendum allowance for fiscal year 38.30 1994 times the ratio of the actual pupil units for fiscal year 38.31 1999, recomputed using the pupil units weights in effect for 38.32 fiscal year 1998 under section 124.17, subdivision 1, to the 38.33 actual pupil units for fiscal year 1999;or38.34 (2) the district's referendum allowance for fiscal year 38.35 1998 times the ratio of the actual pupil units for fiscal year 38.36 1999, recomputed using the pupil units weights in effect for 39.1 fiscal year 1998 under section 124.17, subdivision 1, to the 39.2 actual pupil units for fiscal year 1999; or 39.3 (3) 25 percent of the formula allowance minus$300$246 for 39.4 fiscal year19971999 and later. 39.5 Sec. 42. Minnesota Statutes 1996, section 124A.03, 39.6 subdivision 1f, is amended to read: 39.7 Subd. 1f. [REFERENDUM EQUALIZATION REVENUE.] A district's 39.8 referendum equalization revenue equals$315$327 times the 39.9 district's actual pupil units for that year. 39.10 Referendum equalization revenue must not exceed a 39.11 district's total referendum revenue for that year. 39.12 Sec. 43. Minnesota Statutes 1996, section 124A.03, 39.13 subdivision 1g, is amended to read: 39.14 Subd. 1g. [REFERENDUM EQUALIZATION LEVY.] (a)For fiscal39.15year 1996, a district's referendum equalization levy equals the39.16district's referendum equalization revenue times the lesser of39.17one or the ratio of the district's adjusted net tax capacity per39.18actual pupil unit to 100 percent of the equalizing factor as39.19defined in section 124A.02, subdivision 8.39.20(b)For fiscal year19971999 and thereafter, a district's 39.21 referendum equalization levy for a referendum levied against the 39.22 referendum market value of all taxable property as defined in 39.23 section 124A.02, subdivision 3b, equals the district's 39.24 referendum equalization revenue times the lesser of one or the 39.25 ratio of the district's referendum market value per actual pupil 39.26 unit to$476,000$493,700. 39.27 (c) For fiscal year19971999 and thereafter, a district's 39.28 referendum equalization levy for a referendum levied against the 39.29 net tax capacity of all taxable property equals the district's 39.30 referendum equalization revenue times the lesser of one or the 39.31 ratio of the district's adjusted net tax capacity per actual 39.32 pupil unit to100 percent of the equalizing factor for that39.33year$10,447. 39.34 Sec. 44. Minnesota Statutes 1996, section 124A.03, 39.35 subdivision 3c, is amended to read: 39.36 Subd. 3c. [REFERENDUM ALLOWANCE REDUCTION.] For fiscal 40.1 year19981999 and later, a district's referendum allowance for 40.2 referendum authority under subdivision 1c is reduced as provided 40.3 in this subdivision. 40.4 (a) For referendum revenue authority approved before June 40.5 1, 1996, and effective for fiscal year 1997, the reduction 40.6 equals the amount of the reduction computed for fiscal year 1997 40.7 under subdivision 3b.times the ratio of the actual pupil units 40.8 for fiscal year 1999, recomputed using the pupil units weights 40.9 in effect for fiscal year 1998 under section 124.17, subdivision 40.10 1, to the actual pupil units for fiscal year 1999; or 40.11 (b) For referendum revenue authority approved before June 40.12 1, 1996, and effective beginning in fiscal year 1998, the 40.13 reduction equals the amount of the reduction computed for fiscal 40.14 year 1998 under subdivision 3b.times the ratio of the actual 40.15 pupil units for fiscal year 1999, recomputed using the pupil 40.16 units weights in effect for fiscal year 1998 under section 40.17 124.17, subdivision 1, to the actual pupil units for fiscal year 40.18 1999; or 40.19 (c) For referendum revenue authority approved after May 31, 40.20 1996, there is no reduction. 40.21 (d) For districts with more than one referendum authority, 40.22 the reduction shall be computed separately for each authority. 40.23 The reduction shall be applied first to authorities levied 40.24 against tax capacity, and then to authorities levied against 40.25 referendum market value. For districts with more than one 40.26 authority levied against net tax capacity or against referendum 40.27 market value, the referendum allowance reduction shall be 40.28 applied first to the authority with the earliest expiration date. 40.29 (e) For a newly reorganized district created after July 1, 40.30 1996, the referendum revenue reduction equals the lesser of the 40.31 amount calculated for the combined district, or the sum of the 40.32 amounts by which each of the reorganizing district's 40.33 supplemental revenue reduction exceeds its respective 40.34 supplemental revenue allowances calculated for the year 40.35 preceding the year of reorganization. 40.36 Sec. 45. Minnesota Statutes 1996, section 124A.036, 41.1 subdivision 5, is amended to read: 41.2 Subd. 5. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 41.3 education aid for districts must be adjusted for each pupil 41.4 attending a nonresident district under sections 120.062, 41.5 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22. 41.6 The adjustments must be made according to this subdivision. 41.7 (a) General education aid paid to a resident district must 41.8 be reduced by an amount equal to the sum of: 41.9 (1) the general education revenue exclusive ofcompensatory41.10 basic skills revenue; and 41.11 (2) the referendum equalization revenue approved or renewed 41.12 after July 1, 1997, attributable to the pupil in the resident 41.13 district. 41.14 (b) General education aid paid to a district serving a 41.15 pupil in programs listed in this subdivision shall be increased 41.16 by an amount equal to the sum of: 41.17 (1) the general education revenue exclusive ofcompensatory41.18 basic skills revenue; and 41.19 (2) the referendum equalization revenue approved or renewed 41.20 after July 1, 1997, attributable to the pupil in the nonresident 41.21 district. 41.22 (c) If the amount of the reduction to be made from the 41.23 general education aid of the resident district is greater than 41.24 the amount of general education aid otherwise due the district, 41.25 the excess reduction must be made from other state aids due the 41.26 district. 41.27 (d) The district of residence shall pay tuition to a 41.28 district or an area learning center, operated according to 41.29 paragraph (e), providing special instruction and services to a 41.30 pupil with a disability, as defined in section 120.03, or a 41.31 pupil, as defined in section 120.181, who is enrolled in a 41.32 program listed in this subdivision. The tuition shall be equal 41.33 to (1) the actual cost of providing special instruction and 41.34 services to the pupil, including a proportionate amount for debt 41.35 service and for capital expenditure facilities and equipment, 41.36 and debt service but not including any amount for 42.1 transportation, minus (2) the amount of general education aid, 42.2the amount of capital expenditure facilities aid and capital42.3expenditure equipment aid received under section 124.245,42.4subdivision 6,and special education aid, attributable to that 42.5 pupil, that is received by the district providing special 42.6 instruction and services. 42.7 (e) An area learning center operated by a service 42.8 cooperative, intermediate district, education district, or a 42.9 joint powers cooperative may elect through the action of the 42.10 constituent boards to charge tuition for pupils rather than to 42.11 calculate general education aid adjustments under paragraph (a), 42.12 (b), or (c). The tuition must be equal to the greater of the 42.13 average general education revenue per pupil unit attributable to 42.14 the pupil, or the actual cost of providing the instruction, 42.15 excluding transportation costs, if the pupil meets the 42.16 requirements of section 120.03 or 120.181. 42.17 Sec. 46. Minnesota Statutes 1996, section 124A.036, 42.18 subdivision 6, is amended to read: 42.19 Subd. 6. [CHARTER SCHOOLS.] (a) The general education aid 42.20 for districts must be adjusted for each pupil attending a 42.21 charter school under section 120.064. The adjustments must be 42.22 made according to this subdivision. 42.23 (b) General education aid paid to a resident district must 42.24 be reduced by an amount equal to the sum of: 42.25 (1) the general education revenue exclusive ofcompensatory42.26 basic skills revenue; and 42.27 (2) the referendum equalization revenue approved or renewed 42.28 after July 1, 1997. 42.29 (c) General education aid paid to a district in which a 42.30 charter school not providing transportation according to section 42.31 120.064, subdivision 15, is located shall be increased by an 42.32 amount equal to the product of: (1) the sum of$170$176, plus 42.33 the transportation sparsity allowance for the district, plus the 42.34 transportation transition allowance for the district; times (2) 42.35 the pupil units attributable to the pupil. 42.36 (d) If the amount of the reduction to be made from the 43.1 general education aid of the resident district is greater than 43.2 the amount of general education aid otherwise due the district, 43.3 the excess reduction must be made from other state aids due the 43.4 district. 43.5 Sec. 47. Minnesota Statutes 1996, section 124A.04, 43.6 subdivision 2, is amended to read: 43.7 Subd. 2. [19931999 AND LATER.] The training and 43.8 experience index for fiscal year 1999 and later must be 43.9 constructed in the following manner: 43.10 (a) The department shall construct a matrix that classifies 43.11 teachers by the extent of training received in accredited 43.12 institutions of higher education and by the years of experience 43.13 that districts take into account in determining teacher salaries. 43.14 (b) The average salary for each cell of the matrix must be 43.15 computed as follows using data fromthe second year of the43.16previous bienniumfiscal year 1997: 43.17 (1) For each school district, multiply the salary paid to 43.18 full-time equivalent teachers with that combination of training 43.19 and experience according to the district's teacher salary 43.20 schedule by the number of actual pupil units in that district. 43.21 (2) Add the amounts computed in clause (1) for all 43.22 districts in the state and divide the resulting sum by the total 43.23 number of actual pupil units in all districts in the state that 43.24 employ teachers. 43.25 (c) For each cell in the matrix, compute the ratio of the 43.26 average salary in that cell to the average salary for all 43.27 teachers in the state during fiscal year 1997. 43.28 (d) The index for each district that employs teachers 43.29 equals the sum of: (i) for teachers employed in that district 43.30 during fiscal year 1997 and the current fiscal year, the ratios 43.31 for each teacher computed using data for fiscal year 1997; and 43.32 (ii) for teachers employed in that district during the current 43.33 fiscal year but not during fiscal year 1997, the ratio for 43.34 teachers who are in their first year of teaching and who have no 43.35 additional credits or degrees above a bachelor's degree divided 43.36 by the number of teachers in that district. The index for a 44.1 district that employs no teachers is zero. 44.2 Sec. 48. Minnesota Statutes 1996, section 124A.22, 44.3 subdivision 1, is amended to read: 44.4 Subdivision 1. [GENERAL EDUCATION REVENUE.](a) For fiscal44.5year 1996, the general education revenue for each district44.6equals the sum of the district's basic revenue, compensatory44.7education revenue, training and experience revenue, secondary44.8sparsity revenue, elementary sparsity revenue, and supplemental44.9revenue.44.10(b)(a) For fiscalyearyears 1997 andthereafter1998, 44.11 the general education revenue for each district equals the sum 44.12 of the district's basic revenue, compensatory education revenue, 44.13 secondary sparsity revenue, elementary sparsity revenue, 44.14 transportation sparsity revenue, total operating capital 44.15 revenue, transition revenue, and supplemental revenue. 44.16 (b) For fiscal year 1999 and thereafter, the general 44.17 education revenue for each district equals the sum of the 44.18 district's basic revenue, basic skills revenue, training and 44.19 experience revenue, secondary sparsity revenue, elementary 44.20 sparsity revenue, transportation sparsity revenue, total 44.21 operating capital revenue, transition revenue, and supplemental 44.22 revenue. 44.23 Sec. 49. Minnesota Statutes 1996, section 124A.22, 44.24 subdivision 2, is amended to read: 44.25 Subd. 2. [BASIC REVENUE.] The basic revenue for each 44.26 district equals the formula allowance times the actual pupil 44.27 units for the school year.The formula allowance for fiscal44.28year 1995 is $3,150. The formula allowance for fiscal year 199644.29is $3,205.The formula allowance for fiscal year 1997 is $3,505 44.30and. The formula allowance for fiscal year 1998and subsequent44.31fiscal years the formula allowanceis$3,430$3,505. The 44.32 formula allowance for fiscal year 1999 and subsequent fiscal 44.33 years is $3,589. 44.34 Sec. 50. Minnesota Statutes 1996, section 124A.22, 44.35 subdivision 3, is amended to read: 44.36 Subd. 3. [FISCAL YEAR 1998 COMPENSATORY EDUCATION 45.1 REVENUE.] The compensatory education revenue for each 45.2 district for fiscal year 1998 equals the formula allowance less 45.3 $300 times the AFDC pupil units computed according to section 45.4 124.17, subdivision 1d. 45.5 Sec. 51. Minnesota Statutes 1996, section 124A.22, is 45.6 amended by adding a subdivision to read: 45.7 Subd. 3a. [BASIC SKILLS REVENUE.] For fiscal year 1999 and 45.8 thereafter, a school district's basic skills revenue equals the 45.9 sum of: 45.10 (1) the formula allowance less $384 times the AFDC pupil 45.11 units computed according to section 124.17, subdivision 1g; plus 45.12 (2) the limited English proficiency revenue according to 45.13 section 124.273, subdivision 1g; plus 45.14 (3) $100 times the limited English proficiency pupil units 45.15 according to section 124.17, subdivision 6; plus 45.16 (4) the lesser of: (i) $23 times the number of fund 45.17 balance pupil units in kindergarten to grade 8; or (ii) the 45.18 amount of district money provided to match basic skills revenue 45.19 for the purposes described in section 124A.28. 45.20 Sec. 52. Minnesota Statutes 1996, section 124A.22, 45.21 subdivision 6, is amended to read: 45.22 Subd. 6. [SECONDARY SPARSITY REVENUE.] (a) A district's 45.23 secondary sparsity revenue for a school year equals the sum of 45.24 the results of the following calculation for each qualifying 45.25 high school in the district: 45.26 (1) the formula allowance for the school year 45.27 less$300$384, multiplied by 45.28 (2) the secondary average daily membership of the high 45.29 school, multiplied by 45.30 (3) the quotient obtained by dividing 400 minus the 45.31 secondary average daily membership by 400 plus the secondary 45.32 daily membership, multiplied by 45.33 (4) the lesser of 1.5 or the quotient obtained by dividing 45.34 the isolation index minus 23 by ten. 45.35 (b) A newly formed school district that is the result of 45.36 districts combining under the cooperation and combination 46.1 program or consolidating under section 122.23 shall receive 46.2 secondary sparsity revenue equal to the greater of: (1) the 46.3 amount calculated under paragraph (a) for the combined district; 46.4 or (2) the sum of the amounts of secondary sparsity revenue the 46.5 former school districts had in the year prior to consolidation, 46.6 increased for any subsequent changes in the secondary sparsity 46.7 formula. 46.8 Sec. 53. Minnesota Statutes 1996, section 124A.22, 46.9 subdivision 6a, is amended to read: 46.10 Subd. 6a. [ELEMENTARY SPARSITY REVENUE.] A district's 46.11 elementary sparsity revenue equals the sum of the following 46.12 amounts for each qualifying elementary school in the district: 46.13 (1) the formula allowance for the year less$300$384, 46.14 multiplied by 46.15 (2) the elementary average daily membership of the school, 46.16 multiplied by 46.17 (3) the quotient obtained by dividing 140 minus the 46.18 elementary average daily membership by 140 plus the average 46.19 daily membership. 46.20 Sec. 54. Minnesota Statutes 1996, section 124A.22, 46.21 subdivision 8, is amended to read: 46.22 Subd. 8. [SUPPLEMENTAL REVENUE.] (a) A district's 46.23 supplemental revenue allowance for fiscal year19941999 and 46.24 later fiscal years equals the district's supplemental revenue 46.25 for fiscal year19931998 divided by the district's 46.261992-19931997-1998 actual pupil units times the ratio of the 46.27 actual pupil units for fiscal year 1999, recomputed using the 46.28 pupil units weights in effect for fiscal year 1998 under section 46.29 124.17, subdivision 1, to the actual pupil units for fiscal year 46.30 1999. 46.31 (b)A district's supplemental revenue allowance is reduced46.32for fiscal year 1995 and later according to subdivision 9.46.33(c)A district's supplemental revenue equals the 46.34 supplemental revenue allowance, if any, times its actual pupil 46.35 units for that year. 46.36(d) A school district may cancel its supplemental revenue47.1by notifying the commissioner of education prior to June 30,47.21994. A school district that is reorganizing under section47.3122.22, 122.23, or 122.241 may cancel its supplemental revenue47.4by notifying the commissioner of children, families, and47.5learning prior to July 1 of the year of the reorganization. If47.6a district cancels its supplemental revenue according to this47.7paragraph, its supplemental revenue allowance for fiscal year47.81993 for purposes of subdivision 9 and section 124A.03,47.9subdivision 3b, equals zero.47.10 Sec. 55. Minnesota Statutes 1996, section 124A.22, 47.11 subdivision 8a, is amended to read: 47.12 Subd. 8a. [SUPPLEMENTAL LEVY.] To obtain supplemental 47.13 revenue, a district may levy an amount not more than the product 47.14 of its supplemental revenue for the school year times the lesser 47.15 of one or the ratio of itsgeneral education levy to its general47.16education revenue, excluding transition revenue and supplemental47.17revenue, for the same yearadjusted net tax capacity per actual 47.18 pupil unit to $10,447. 47.19 Sec. 56. Minnesota Statutes 1996, section 124A.22, 47.20 subdivision 10, is amended to read: 47.21 Subd. 10. [TOTAL OPERATING CAPITAL REVENUE.] (a) For 47.22 fiscal year19971999 and thereafter, total operating capital 47.23 revenue for a district equals the amount determined under 47.24 paragraph (b),or (c),(d), (e), or (f),plus$68$71 times 47.25 the actual pupil units for the school year. The revenue must be 47.26 placed in a reserved account in the general fund and may only be 47.27 used according to subdivision 11. 47.28 (b) For fiscal years19961999 and later, capital revenue 47.29 for a district equals$100$104 times the district's maintenance 47.30 cost index times its actual pupil units for the school year. 47.31 (c)For 1996 and later fiscal years, the previous formula47.32revenue for a district equals $128 times its actual pupil units47.33for fiscal year 1995.47.34(d) Notwithstanding paragraph (b), for fiscal year 1996,47.35the revenue for each district equals 25 percent of the amount47.36determined in paragraph (b) plus 75 percent of the previous48.1formula revenue.48.2(e) Notwithstanding paragraph (b), for fiscal year 1997,48.3the revenue for each district equals 50 percent of the amount48.4determined in paragraph (b) plus 50 percent of the previous48.5formula revenue.48.6(f) Notwithstanding paragraph (b), for fiscal year 1998,48.7the revenue for each district equals 75 percent of the amount48.8determined in paragraph (b) plus 25 percent of the previous48.9formula revenue.48.10(g)The revenue for a district that operates a program 48.11 under section 121.585, is increased by an amount equal 48.12 to$15$16 times the number of actual pupil units at the site 48.13 where the program is implemented. 48.14 Sec. 57. Minnesota Statutes 1996, section 124A.22, 48.15 subdivision 11, is amended to read: 48.16 Subd. 11. [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 48.17 operating capital revenue may be used only for the following 48.18 purposes: 48.19 (1) to acquire land for school purposes; 48.20 (2) to acquire or construct buildings for school purposes, 48.21 up to $400,000; 48.22 (3) to rent or lease buildings, including the costs of 48.23 building repair or improvement that are part of a lease 48.24 agreement; 48.25 (4) to improve and repair school sites and buildings, and 48.26 equip or reequip school buildings with permanent attached 48.27 fixtures; 48.28 (5) for a surplus school building that is used 48.29 substantially for a public nonschool purpose; 48.30 (6) to eliminate barriers or increase access to school 48.31 buildings by individuals with a disability; 48.32 (7) to bring school buildings into compliance with the 48.33 uniform fire code adopted according to chapter 299F; 48.34 (8) to remove asbestos from school buildings, encapsulate 48.35 asbestos, or make asbestos-related repairs; 48.36 (9) to clean up and dispose of polychlorinated biphenyls 49.1 found in school buildings; 49.2 (10) to clean up, remove, dispose of, and make repairs 49.3 related to storing heating fuel or transportation fuels such as 49.4 alcohol, gasoline, fuel oil, and special fuel, as defined in 49.5 section 296.01; 49.6 (11) for energy audits for school buildings and to modify 49.7 buildings if the audit indicates the cost of the modification 49.8 can be recovered within ten years; 49.9 (12) to improve buildings that are leased according to 49.10 section 123.36, subdivision 10; 49.11 (13) to pay special assessments levied against school 49.12 property but not to pay assessments for service charges; 49.13 (14) to pay principal and interest on state loans for 49.14 energy conservation according to section 216C.37 or loans made 49.15 under the northeast Minnesota economic protection trust fund act 49.16 according to sections 298.292 to 298.298; 49.17 (15) to purchase or lease interactive telecommunications 49.18 equipment; 49.19 (16) by school board resolution, to transfer money into the 49.20 debt redemption fund to: (i) pay the amounts needed to meet, 49.21 when due, principal and interest payments on certain obligations 49.22 issued according to chapter 475; or (ii) pay principal and 49.23 interest on debt service loans or capital loans according to 49.24 section 124.44; 49.25 (17) to pay capital expenditure equipment-related 49.26 assessments of any entity formed under a cooperative agreement 49.27 between two or more districts; 49.28 (18) to purchase or lease computers and related materials, 49.29 copying machines, telecommunications equipment, and other 49.30 noninstructional equipment; 49.31 (19) to purchase or lease assistive technology or equipment 49.32 for instructional programs; 49.33 (20) to purchase textbooks; 49.34 (21) to purchase new and replacement library books; 49.35 (22) to purchase vehicles; 49.36 (23) to purchase or lease telecommunications equipment, 50.1 computers, and related equipment for integrated information 50.2 management systems for: 50.3 (i) managing and reporting learner outcome information for 50.4 all students under a results-oriented graduation rule; 50.5 (ii) managing student assessment, services, and achievement 50.6 information required for students with individual education 50.7 plans; and 50.8 (iii) other classroom information management needs; and 50.9 (24) to pay personnel costs directly related to the 50.10 acquisition, operation, and maintenance of telecommunications 50.11 systems, computers, related equipment, and network and 50.12 applications software. 50.13 Sec. 58. Minnesota Statutes 1996, section 124A.22, 50.14 subdivision 13, is amended to read: 50.15 Subd. 13. [TRANSPORTATION SPARSITY DEFINITIONS.] The 50.16 definitions in this subdivision apply to subdivisions 13a and 50.17 13b. 50.18 (a) "Sparsity index" for a school district means the 50.19 greater of .2 or the ratio of the square mile area of the school 50.20 district to the actual pupil units of the school district. 50.21 (b) "Density index" for a school district means the ratio 50.22 of the square mile area of the school district to the actual 50.23 pupil units of the school district. However, the density index 50.24 for a school district cannot be greater than .2 or less than 50.25 .005. 50.26 (c) For fiscal year 1998, "fiscal year 1996 base allowance" 50.27 for a school district means the result of the following 50.28 computation: 50.29 (1) sum the following amounts: 50.30 (i) the fiscal year 1996 regular transportation revenue for 50.31 the school district according to section 124.225, subdivision 50.32 7d, paragraph (a), excluding the revenue attributable nonpublic 50.33 school pupils and to pupils with disabilities receiving special 50.34 transportation services; plus 50.35 (ii) the fiscal year 1996 nonregular transportation revenue 50.36 for the school district according to section 124.225, 51.1 subdivision 7d, paragraph (b), excluding the revenue for 51.2 desegregation transportation according to section 124.225, 51.3 subdivision 1, paragraph (c), clause (4), and the revenue 51.4 attributable to nonpublic school pupils and to pupils with 51.5 disabilities receiving special transportation services or board 51.6 and lodging; plus 51.7 (iii) the fiscal year 1996 excess transportation levy for 51.8 the school district according to section 124.226, subdivision 5, 51.9 excluding the levy attributable to nonpublic school pupils; plus 51.10 (iv) the fiscal year 1996 late activity bus levy for the 51.11 school district according to section 124.226, subdivision 9, 51.12 excluding the levy attributable to nonpublic school pupils; plus 51.13 (v) an amount equal to one-third of the fiscal year 1996 51.14 bus depreciation for the school district according to section 51.15 124.225, subdivision 1, paragraph (b), clauses (2), (3), and (4). 51.16 (2) divide the result in clause (1) by the schooldistricts51.17 district's 1995-1996actualfund balance pupil units. 51.18 For fiscal year 1999 and later years, "fiscal year 1996 base 51.19 allowance" means the fiscal year base allowance computed for 51.20 fiscal year 1998, times the ratio of the actual pupil units for 51.21 fiscal year 1999, recomputed using the pupil units weights in 51.22 effect for fiscal year 1998 under section 124.17, subdivision 1, 51.23 to the actual pupil units for fiscal year 1999. 51.24 Sec. 59. Minnesota Statutes 1996, section 124A.22, 51.25 subdivision 13a, is amended to read: 51.26 Subd. 13a. [TRANSPORTATION SPARSITY REVENUE ALLOWANCE.] 51.27 (a) A district's transportation sparsity allowance equals the 51.28 greater of zero or the result of the following computation: 51.29 (i) Multiply the formula allowance according to section 51.30 124A.22, subdivision 2, by.1469.1481. 51.31 (ii) Multiply the result in clause (i) by the district's 51.32 sparsity index raised to the 26/100 power. 51.33 (iii) Multiply the result in clause (ii) by the district's 51.34 density index raised to the 13/100 power. 51.35 (iv) Multiply the formula allowance according to section 51.36 124A.22, subdivision 2, by.0485.0489. 52.1 (v) Subtract the result in clause (iv) from the result in 52.2 clause (iii). 52.3 (b) Transportation sparsity revenue is equal to the 52.4 transportation sparsity allowance times the actual pupil units. 52.5 Sec. 60. Minnesota Statutes 1996, section 124A.22, 52.6 subdivision 13b, is amended to read: 52.7 Subd. 13b. [TRANSITION ALLOWANCE.] (a)A district's52.8transportation transition allowance for fiscal year 1997 equals52.9the result of the following computation:52.10(1) if the result in subdivision 13a, paragraph (a), clause52.11(iii), for fiscal year 1997 is less than the fiscal year 199652.12base allowance, the transportation transition allowance equals52.13the fiscal year 1996 base allowance minus the result in52.14subdivision 13a, paragraph (a), clause (iii).52.15(2) if the result in subdivision 13a, paragraph (b), for52.16fiscal year 1997 is greater than the fiscal year 1996 base52.17allowance and less than 110 percent of the fiscal year 1996 base52.18allowance, the transportation transition allowance equals zero.52.19(3) if the result in subdivision 13a, paragraph (b), for52.20fiscal year 1997 is greater than 110 percent of the fiscal year52.211996 base allowance, the transportation transition allowance52.22equals 110 percent of the fiscal year 1996 base allowance minus52.23the result in subdivision 13a, paragraph (a), clause (iii).52.24(b)A district's transportation transition allowance for 52.25 fiscal year 1998 and thereafter equals the result of the 52.26 following: 52.27 (1) if the result in subdivision 13a, paragraph (a), clause 52.28 (iii),for fiscal year 1998is less than the fiscal year 1996 52.29 base allowance, the transportation transition allowance equals 52.30 the fiscal year 1996 base allowance minus the result in 52.31 subdivision 13a, paragraph (a), clause (iii); or 52.32 (2) if the result in subdivision 13a, paragraph (a), clause 52.33 (iii),for fiscal year 1998is greater than or equal to the 52.34 fiscal year 1996 base allowance, the transportation transition 52.35 allowance equals zero. 52.36(c)(b) For fiscal years 1997 and 1998, a district's 53.1 training and experience transition allowance is equal to the 53.2 training and experience revenue the district would have received 53.3 for fiscal year 1997 under Minnesota Statutes 1994, section 53.4 124A.22, subdivision 4, divided by the actual pupil units for 53.5 fiscal year 1997 minus $130. For fiscal year 1999 and later, a 53.6 district's training and experience transition allowance equals 53.7 zero. 53.8 If the training and experience transition allowance is less 53.9 than zero, the reduction shall be determined according to the 53.10 following schedule: 53.11 (i) for fiscal year 1997, the reduction is equal to .9 53.12 times the amount initially determined; and 53.13 (ii) for fiscal year 1998, the reduction is equal to .75 53.14 times the amount initially determined;53.15(iii) for fiscal year 1999, the reduction is equal to .5053.16times the amount initially determined;53.17(iv) for fiscal year 2000, the reduction is equal to .2553.18times the amount initially determined; and53.19(v) for fiscal year 2001 and thereafter, the transition53.20allowance shall not be less than zero. 53.21 (c) A district's formula change transition allowance for 53.22 fiscal year 1999 and thereafter equals the greater of zero or 53.23 the result of the following: 53.24 (i) compute the sum of the district cooperation revenue for 53.25 fiscal year 1998 according to section 124.2727, subdivision 6a, 53.26 and the general education revenue for fiscal year 1998 according 53.27 to subdivision 1, excluding an amount equal to the product of 53.28 the 1997-1998 actual pupil units times the sum of $130 plus the 53.29 training and experience transition allowance for fiscal year 53.30 1998 according to this subdivision; 53.31 (ii) divide the result in clause (i) by the 1997-1998 53.32 average daily membership according to section 124.17, 53.33 subdivision 2; 53.34 (iii) compute an amount equal to the general education 53.35 revenue for fiscal year 1999 according to subdivision 1, 53.36 excluding the training and experience revenue according to 54.1 subdivision 13f and excluding the portion of basic skills 54.2 revenue according to subdivision 3a, clauses (2), (3), and (4); 54.3 (iv) divide the result in clause (iii) by the 1998-1999 54.4 average daily membership according to section 124.17, 54.5 subdivision 2; 54.6 (v) subtract the result in clause (iv) from the result in 54.7 clause (ii); and 54.8 (vi) multiply the result in clause (v) by the ratio of the 54.9 1998-1999 average daily membership to the 1998-1999 actual pupil 54.10 units. 54.11 (d) A district's transition allowance for fiscalyearyears 54.12 1997 andthereafter1998 is equal to the sum of its 54.13 transportation transition allowance and its training and 54.14 experience transition allowance. A district's transition 54.15 allowance for fiscal year 1999 and thereafter is equal to the 54.16 sum of its transportation transition allowance and its formula 54.17 change transition allowance. 54.18 Sec. 61. Minnesota Statutes 1996, section 124A.22, 54.19 subdivision 13d, is amended to read: 54.20 Subd. 13d. [TRANSITION LEVY ADJUSTMENT.] A district's 54.21 general education levy shall be adjusted by an amount equal to 54.22 the district's transition revenue times the lesser of 1 or the 54.23 ratio ofthe district's general education levy to its general54.24education revenue, excluding transition revenue and supplemental54.25revenueits adjusted net tax capacity per actual pupil unit to 54.26 $10,447. 54.27 Sec. 62. Minnesota Statutes 1996, section 124A.22, 54.28 subdivision 13f, is amended to read: 54.29 Subd. 13f. [TRAINING AND EXPERIENCE REVENUE.] Training and 54.30 experience revenue for each district equals the greater of zero 54.31 or the result of the following computation: 54.32 (1) subtract .8 from the training and experience index; 54.33 (2) multiply the result in clause (1) by the product of 54.34$660$685 times the actual pupil units for that school year. 54.35 Sec. 63. Minnesota Statutes 1996, section 124A.225, 54.36 subdivision 1, is amended to read: 55.1 Subdivision 1. [REVENUE.] (a) Of a district's general 55.2 education revenue for fiscal year 1998, an amount equal to the 55.3 sum of the number of elementary fund balance pupils in average 55.4 daily membership defined in section 124.17, subdivision 1h, and 55.5 one-half of the number of kindergarten fund balance pupils in 55.6 average daily membership as defined in section 124.17, 55.7 subdivision1h1f, times .06for fiscal year 1995 and thereafter55.8 times the formula allowance must be reserved according to this 55.9 section. 55.10 (b) Of a district's general education revenue for fiscal 55.11 year 1999 and thereafter, an amount equal to the sum of the 55.12 number of fund balance pupils in grades 1 to 3 in average daily 55.13 membership defined in section 124.17, subdivision 1h, and 55.14 one-half of the number of kindergarten fund balance pupils in 55.15 average daily membership as defined in section 124.17, 55.16 subdivision 1f, times .11 times the formula allowance must be 55.17 reserved according to this section. 55.18 Sec. 64. Minnesota Statutes 1996, section 124A.23, 55.19 subdivision 1, is amended to read: 55.20 Subdivision 1. [GENERAL EDUCATION TAX RATE.] The 55.21 commissioner shall establish the general education tax rate by 55.22 July 1 of each year for levies payable in the following year. 55.23 The general education tax capacity rate shall be a rate, rounded 55.24 up to the nearesttenthhundredth of a percent, that, when 55.25 applied to the adjusted net tax capacity for all districts, 55.26 raises the amount specified in this subdivision. The general 55.27 education tax rate shall be the rate that raises$1,054,000,00055.28for fiscal year 1996 and$1,359,000,000 for fiscal year199755.29 1998 and $1,452,865,000 for fiscal year 1999 and later fiscal 55.30 years. The general education tax rate may not be changed due to 55.31 changes or corrections made to a district's adjusted net tax 55.32 capacity after the tax rate has been established. 55.33 Sec. 65. Minnesota Statutes 1996, section 124A.23, 55.34 subdivision 2, is amended to read: 55.35 Subd. 2. [GENERAL EDUCATION LEVY.] To obtain general 55.36 education revenue, excluding transition revenue and supplemental 56.1 revenue, a district may levy an amount not to exceed the general 56.2 education tax rate times the adjusted net tax capacity of the 56.3 district for the preceding year. If the amount of the general 56.4 education levy would exceed the general education revenue, 56.5 excluding supplemental revenue, the general education levy shall 56.6 be determined according to subdivision 3. 56.7 Sec. 66. Minnesota Statutes 1996, section 124A.23, 56.8 subdivision 3, is amended to read: 56.9 Subd. 3. [GENERAL EDUCATION LEVY; DISTRICTS OFF THE 56.10 FORMULA.] If the amount of the general education levy for a 56.11 district exceeds the district's general education revenue, 56.12 excludingtraining and experiencetransition revenue and 56.13 supplemental revenue, the amount of the general education levy 56.14 shall be limited to the following: 56.15 (1) the district's general education revenue, excluding 56.16training and experiencetransition revenue and supplemental 56.17 revenue; plus 56.18 (2) the amount of the aid reduction for the same school 56.19 year according to section 124A.24; minus 56.20 (3) payments made for the same school year according to 56.21 section 124A.035, subdivision 4. 56.22 For purposes of statutory cross-reference, a levy made 56.23 according to this subdivision shall be construed to be the levy 56.24 made according to subdivision 2. 56.25 Sec. 67. Minnesota Statutes 1996, section 124A.23, 56.26 subdivision 5, is amended to read: 56.27 Subd. 5. [USES OF REVENUE.] Except as provided in 56.28sectionsections 124A.22, subdivision 11; 124A.225; and 124A.28, 56.29 general education revenue may be used during the regular school 56.30 year and the summer for general and special school purposes. 56.31 Sec. 68. Minnesota Statutes 1996, section 124A.26, 56.32 subdivision 1, is amended to read: 56.33 Subdivision 1. [REVENUE REDUCTION.] A district's general 56.34 education revenue for a school year shall be reduced if the 56.35 estimated net unappropriated operating fund balance as of June 56.36 30 in the prior school year exceeds 25 percent of the formula 57.1 allowance for the current fiscal year times the fund balance 57.2 pupil units in the prior year. For purposes of this subdivision 57.3and section 124.243, subdivision 2, fund balance pupil units 57.4 means the number of resident pupil units in average daily 57.5 membership, including shared time pupils, according to section 57.6 124A.02, subdivision 20, plus 57.7 (1) pupils attending the district for which general 57.8 education aid adjustments are made according to section 57.9 124A.036, subdivision 5; minus 57.10 (2) the sum of the resident pupils attending other 57.11 districts for which general education aid adjustments are made 57.12 according to section 124A.036, subdivision 5, plus pupils for 57.13 whom payment is made according to section 126.22, subdivision 8, 57.14 or 126.23. The amount of the reduction shall equal the lesser 57.15 of: 57.16 (1) the amount of the excess, or 57.17 (2)$250$260 times the actual pupil units for the school 57.18 year. 57.19 The final adjustment payments made under section 124.195, 57.20 subdivision 6, must be adjusted to reflect actual net operating 57.21 fund balances as of June 30 of the prior school year. 57.22 Sec. 69. Minnesota Statutes 1996, section 124A.26, 57.23 subdivision 2, is amended to read: 57.24 Subd. 2. [LEVY REDUCTION.] If a district's general 57.25 education revenue is reduced, the general education levy shall 57.26 be reduced by the following amount: 57.27 (1) the reduction specified in subdivision 1, times 57.28 (2) the lesser of one or the ratio of the district's 57.29general education levy to its general education revenue,57.30excluding training and experience revenue and supplemental57.31revenueadjusted net tax capacity per actual pupil unit to 57.32 $10,447. 57.33 Sec. 70. Minnesota Statutes 1996, section 124A.28, is 57.34 amended to read: 57.35 124A.28 [COMPENSATORY EDUCATIONBASIC SKILLS REVENUE.] 57.36 Subdivision 1. [USE OF THE REVENUE.] Thecompensatory58.1educationbasic skills revenue under section 124A.22, 58.2 subdivision33a, must be used to meet the educational needs of 58.3 pupils whoseeducational achievementprogress toward meeting 58.4 state or local content or performance standards is below the 58.5 level that is appropriate forpupilslearners of their age. 58.6These needs may be met by providing theAny of the following may 58.7 be provided to meet these learners' needs: 58.8 (1) direct instructional services under the assurance of 58.9 mastery program according to section124.311124.3111; 58.10 (2) remedial instruction in reading, language arts,and58.11 mathematics, other content areas, or study skills to improve the 58.12 achievement level of thesepupilslearners; 58.13 (3) additional teachers and teacher aides to provide more 58.14 individualized instruction to thesepupilslearners through 58.15 individual tutoring, lower instructor-to-learner ratios, or team 58.16 teaching; 58.17 (4) summer programs that enable these pupils to improve 58.18 their achievement or that reemphasize material taught during the 58.19 regular school year; 58.20 (5)in-service educationcomprehensive and ongoing staff 58.21 development consistent with district and site plans according to 58.22 section 126.70, for teachers, teacher aides, principals, and 58.23 other personnel to improve their ability torecognizeidentify 58.24 the needs of thesepupilslearners and provide 58.25 appropriateresponses to the pupils' needsremediation, 58.26 intervention, accommodations, or modifications; 58.27 (6)forinstructionalmaterial for these pupils including:58.28textbooks, workbooks, periodicals, pamphlets, photographs,58.29reproductions, filmstrips, prepared slides, prerecorded video58.30programs, sound recordings, desk charts, games, study prints and58.31pictures, desk maps, models, learning kits, blocks and cubes,58.32flashcards, instructional computer software programs, pencils,58.33pens, crayons, notebooks, duplicating fluids, and58.34papersmaterials and technology appropriate for meeting the 58.35 individual needs of these learners; 58.36 (7) programs to reduce truancy, encourage completion of 59.1 high school, enhance self-concept, provide health services, 59.2 provide nutrition services, provide a safe and secure learning 59.3 environment, provide coordination for pupils receiving services 59.4 from other governmental agencies, provide psychological services 59.5 to determine the level of social, emotional, cognitive, and 59.6 intellectual development, and provide counseling services, 59.7 guidance services, and social work services; 59.8 (8) bilingual programs, bicultural programs, and programs 59.9 forpupilslearners of limited English proficiency; 59.10 (9) all day kindergarten; 59.11 (10) extended school day and extended school year programs; 59.12and59.13 (11) substantial parent involvement in developing and 59.14 implementing remedial education or intervention plans for a 59.15 learner, including learning contracts between the school, the 59.16 learner, and the parent that establish achievement goals and 59.17 responsibilities of the learner and the learner's parent or 59.18 guardian; and 59.19 (12) other methods to increase achievement, as needed. 59.20 Subd. 1a. [BUILDING ALLOCATION.] A district must consider 59.21 the concentration of children from low-income families, children 59.22 with limited English proficiency, and children whose progress 59.23 toward meeting state or local content or performance standards 59.24 is below the level that is appropriate for learners of their age 59.25 in each school building in the district when allocating 59.26compensatorybasic skills revenue. 59.27 Subd. 2. [SEPARATE ACCOUNTS.] Each district that 59.28 receivescompensatory educationbasic skills revenue shall 59.29 maintain separate accounts to identify expenditures for salaries 59.30 and programs related to this revenue. 59.31 Subd. 3. [ANNUAL EXPENDITURE REPORT.] Each year a district 59.32 that receivescompensatory educationbasic skills revenue shall 59.33 submit a report identifying the expenditures it incurredin59.34providing compensatory education to the pupils described into 59.35 meet the needs of eligible learners under subdivision 1. The 59.36 report must conform to uniform financial and reporting standards 60.1 established for this purpose. 60.2 Sec. 71. Minnesota Statutes 1996, section 126.22, 60.3 subdivision 8, is amended to read: 60.4 Subd. 8. [ENROLLMENT VERIFICATION.] (a) For a pupil 60.5 attending an eligible program full time under subdivision 3, 60.6 paragraph (d), the department of children, families, and 60.7 learning shall pay 90 percent of the basic revenue and 100 60.8 percent of the portion of basic skills revenue attributable to 60.9 AFDC pupil units according to section 124A.22, subdivision 3a, 60.10 paragraph (1), of the district to the eligible program and ten 60.11 percent of the basic revenue to the resident district within 30 60.12 days after the eligible program verifies enrollment using the 60.13 form provided by the department. For a pupil attending an 60.14 eligible program part time,basicrevenue shall be reduced 60.15 proportionately, according to the amount of time the pupil 60.16 attends the program, and the payments to the eligible program 60.17 and the resident district shall be reduced accordingly. A pupil 60.18 for whom payment is made according to this section may not be 60.19 counted by any district for any purpose other than computation 60.20 of basic revenue, according to section 124A.22, subdivision 2, 60.21 and basic skills revenue, according to section 124A.22, 60.22 subdivision 3a, paragraph (1). If payment is made for a pupil 60.23 under this subdivision, a school district shall not reimburse a 60.24 program under section 126.23 for the same pupil. 60.25 (b) The department of children, families, and learning 60.26 shall pay up to 100 percent of the basic revenue to the eligible 60.27 program if there is an agreement to that effect between the 60.28 school district and the eligible program. 60.29 (c) Notwithstanding the amount of the formula allowance in 60.30 section 124A.22, subdivision 2, the commissioner shall use the 60.31 amount of the formula allowance minus $300 for fiscal year 1998 60.32 and the amount of the formula allowance less $176 for fiscal 60.33 year 1999 and later years in determining the payments of basic 60.34 revenue under this section and section 126.23. 60.35 Sec. 72. Minnesota Statutes 1996, section 126.23, 60.36 subdivision 1, is amended to read: 61.1 Subdivision 1. [AID.] If a pupil enrolls in an alternative 61.2 program, eligible under section 126.22, subdivision 3, paragraph 61.3 (d), or subdivision 3a, operated by a private organization that 61.4 has contracted with a school district to provide educational 61.5 services for eligible pupils under section 126.22, subdivision 61.6 2, the district contracting with the private organization must 61.7 reimburse the provider an amount equal to at least 90 percent of 61.8 the basic revenue and 100 percent of the portion of basic skills 61.9 revenue attributable to AFDC pupil units according to section 61.10 124A.22, subdivision 3a, paragraph (1), of the district for each 61.11 pupil attending the program full time. For a pupil attending 61.12 the program part time,basicrevenue paid to the program shall 61.13 be reduced proportionately, according to the amount of time the 61.14 pupil attends the program, andbasicrevenue paid to the 61.15 district shall be reduced accordingly. Pupils for whom a 61.16 district provides reimbursement may not be counted by the 61.17 district for any purpose other than computation of basic 61.18 revenue, according to section 124A.22, subdivision 2, and basic 61.19 skills revenue, according to section 124A.22, subdivision 3a, 61.20 paragraph (1). If payment is made to a district or program for 61.21 a pupil under this section, the department of children, 61.22 families, and learning shall not make a payment for the same 61.23 pupil under section 126.22, subdivision 8. 61.24 Sec. 73. Laws 1996, chapter 461, section 3, subdivision 2, 61.25 is amended to read: 61.26 Subd. 2. [APPROPRIATION.]$180,000,000$200,000,000 is 61.27 appropriated from the general fund to the commissioner of 61.28 children, families, and learning for fiscal year 1997 to reduce 61.29 the property tax levy recognition percentage under Minnesota 61.30 Statutes, section 121.904, subdivision 4a, paragraph (b), clause 61.31 (3). This appropriation replaces the appropriation for fiscal 61.32 year 1997 made under Minnesota Statutes, section 16A.152, 61.33 subdivision 2, as a result of the November 1995 forecast. 61.34 Sec. 74. [BUS PURCHASE LEVY.] 61.35 For 1997 taxes payable in 1998, a school district may levy 61.36 the amount necessary to eliminate the deficit in the reserved 62.1 fund balance account for bus purchases in its transportation 62.2 fund as of June 30, 1996. 62.3 Sec. 75. [FISCAL YEARS 1996, 1997, AND 1998 FORMULA 62.4 REVENUE.] 62.5 Notwithstanding Minnesota Statutes 1994, section 124.243, 62.6 subdivision 2, paragraph (d), and Minnesota Statutes 1996, 62.7 section 124A.22, subdivision 10, paragraph (c), the previous 62.8 formula revenue for a school district for fiscal years 1996, 62.9 1997, and 1998 equals $128 times its actual pupil units for the 62.10 school year to which the revenue is attributable. 62.11 Sec. 76. [APPROPRIATIONS.] 62.12 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 62.13 LEARNING.] The sums indicated in this section are appropriated 62.14 from the general fund to the department of children, families, 62.15 and learning for the fiscal years designated. 62.16 Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 62.17 general and supplemental education aid: 62.18 $2,461,157,000 ..... 1998 62.19 $2,502,458,000 ..... 1999 62.20 The 1998 appropriation includes $227,214,000 for 1997 and 62.21 $2,233,943,000 for 1998. 62.22 The 1999 appropriation includes $233,472,000 for 1998 and 62.23 $2,268,986,000 for 1999. 62.24 Of the 1998 appropriation, the first $113,800,000 is from 62.25 the education aids reserve of the general fund. 62.26 Subd. 3. [TRANSPORTATION SAFETY.] For student 62.27 transportation safety aid according to Minnesota Statutes, 62.28 section 124.225, subdivision 8m: 62.29 $1,430,000 ..... 1998 62.30 $1,458,000 ..... 1999 62.31 The 1998 appropriation includes $129,000 for 1997 and 62.32 $1,301,000 for 1998. 62.33 The 1999 appropriation includes $144,000 for 1997 and 62.34 $1,314,000 for 1998. 62.35 Subd. 4. [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 62.36 transportation of pupils attending post-secondary institutions 63.1 according to Minnesota Statutes, section 123.3514, or for 63.2 transportation of pupils attending nonresident districts 63.3 according to Minnesota Statutes, section 120.062: 63.4 $102,000 ..... 1998 63.5 $102,000 ..... 1999 63.6 Any balance in the first year does not cancel but is 63.7 available in the second year. 63.8 Subd. 5. [WIDE AREA TRANSPORTATION SERVICE PILOT PROJECT.] 63.9 To expand the wide area transportation service project: 63.10 $100,000 ..... 1998 63.11 $ 50,000 ..... 1999 63.12 The purpose is to expand the project for the computerized 63.13 mapping and scheduling programs for school districts to jointly 63.14 provide transportation services for low-incidence programs in 63.15 the metropolitan area. These services include, but are not 63.16 limited to, transportation for special education, nonpublic 63.17 pupils, results-oriented charter schools, enrollment options 63.18 programs, area learning center programs, and desegregation 63.19 programs. The department shall work with representatives of the 63.20 affected programs, transportation managers from both 63.21 metropolitan and rural districts, and the metropolitan council. 63.22 The department shall contract for services as appropriate. The 63.23 project shall consider the relationship of education 63.24 transportation with transportation services provided by 63.25 noneducation agencies. 63.26 Any balance in the first year does not cancel but is 63.27 available in the second year. 63.28 Subd. 6. [INTERDISTRICT DESEGREGATION OR INTEGRATION 63.29 TRANSPORTATION GRANTS.] For interdistrict desegregation or 63.30 integration transportation grants under Minnesota Statutes, 63.31 section 124.227: 63.32 $800,000 ..... 1998 63.33 $970,000 ..... 1999 63.34 Any balance in the first year does not cancel but is 63.35 available in the second year. 63.36 Subd. 7. [TARGETED NEEDS TRANSPORTATION AID.] For aid 64.1 payments for targeted needs transportation aid under Minnesota 64.2 Statutes, section 124.225, subdivision 13: 64.3 $75,728,000 ..... 1998 64.4 $ 7,619,000 ..... 1999 64.5 The 1998 appropriation includes $7,148,000 for 1997 and 64.6 $68,580,000 for 1998. 64.7 The 1999 appropriation includes $7,619,000 for 1998 and -0- 64.8 for 1999. 64.9 Subd. 8. [HEALTH AND SAFETY AID.] For health and safety 64.10 aid according to Minnesota Statutes, section 124.83, subdivision 64.11 5: 64.12 $12,281,000 ..... 1998 64.13 $12,179,000 ..... 1999 64.14 The 1998 appropriation includes $1,131,000 for 1997 and 64.15 $11,150,000 for 1998. 64.16 The 1999 appropriation includes $1,237,000 for 1998 and 64.17 $10,942,000 for 1999. 64.18 Subd. 9. [DEBT SERVICE AID.] For debt service aid 64.19 according to Minnesota Statutes, section 124.95, subdivision 5: 64.20 $35,452,000 ..... 1998 64.21 $37,680,000 ..... 1999 64.22 The 1998 appropriation includes $3,313,000 for 1997 and 64.23 $32,139,000 for 1998. 64.24 The 1999 appropriation includes $3,570,000 for 1998 and 64.25 $34,110,000 for 1999. 64.26 Subd. 10. [FIRST-GRADE PREPAREDNESS PROGRAM.] For grants 64.27 for first-grade preparedness programs under Minnesota statutes, 64.28 section 124.2613: 64.29 $3,150,000 ..... 1998 64.30 $3,500,000 ..... 1999 64.31 The 1998 appropriation includes -0- for 1997 and $3,150,000 64.32 for 1998. 64.33 The 1999 appropriation includes $350,000 for 1998 and 64.34 $3,150,000 for 1999. 64.35 Sec. 77. [REPEALER.] 64.36 (a) Minnesota Statutes 1996, sections 124.223; 124.225, 65.1 subdivisions 3a, 7a, 7b, 7d, 7e, 8a, and 8k; 124A.02, 65.2 subdivision 24; and 124A.22, subdivisions 4, 4a, and 4b, are 65.3 repealed effective July 1, 1997. 65.4 (b) Minnesota Statutes 1996, sections 124.226; 124A.22, 65.5 subdivision 9; and 124A.292, are repealed effective for revenue 65.6 for fiscal year 1999. 65.7 Sec. 78. [EFFECTIVE DATE.] 65.8 Sections 2, 4, 10, 19, 20, 29 to 34, 57, 73, and 75 are 65.9 effective the day following final enactment. Sections 17, 18, 65.10 and 72 are effective July 1, 1998. Sections 12, 21, 22, 26, 35, 65.11 41 to 47, 52 to 56, 59, 62, 68 to 70 are effective for revenue 65.12 for fiscal year 1999. Section 28 is effective for taxes payable 65.13 in 1998. 65.14 ARTICLE 2 65.15 SPECIAL PROGRAMS 65.16 Section 1. Minnesota Statutes 1996, section 124.17, 65.17 subdivision 5, is amended to read: 65.18 Subd. 5. [BASIC SKILLS SUMMER SCHOOL PUPIL UNITS.] When a 65.19 pupil who has not passed an assessment of basic graduation 65.20 standards in reading, writing, or mathematics is enrolled in a 65.21 mastery of basic skills summer school program that is not a part 65.22 of the regular school term and the student has a total 65.23 enrollment time of more than 1,020 hours in a school year, the 65.24 pupil may be counted as more than one pupil in average daily 65.25 membership for purposes of this subdivision only. The amount in 65.26 excess of one pupil must be determined by the ratio of the 65.27 number of hours of instruction provided to that pupil in excess 65.28 of 1,020 hours. For each pupil, only the amount of summer 65.29 school enrollment time attributable to basic skills instruction 65.30 may be used to calculate the additional hours in the school 65.31 year. Basic skills instruction is defined as in Minnesota's 65.32 rules on graduation standards and includes reading, writing, and 65.33 mathematics. Hours that occur after the close of the 65.34 instructional year in June shall be attributable to the 65.35 following fiscal year. A pupil for whom payment is made under 65.36 this subdivision may be counted by a district only for the 66.1 computation of basic revenue, according to section 124A.22, 66.2 subdivision 2, minus$300$176. 66.3 Sec. 2. Minnesota Statutes 1996, section 124.17, is 66.4 amended by adding a subdivision to read: 66.5 Subd. 6. [LEP PUPIL UNITS.] (a) Limited English 66.6 proficiency pupil units for fiscal year 1999 and thereafter 66.7 shall be determined according to this subdivision. 66.8 (b) The limited English proficiency concentration 66.9 percentage for a district equals the product of 100 times the 66.10 ratio of: 66.11 (1) the number of pupils of limited English proficiency 66.12 residing in the district during the current fiscal year; to 66.13 (2) the number of pupils in average daily membership 66.14 residing in the district. 66.15 (c) The limited English proficiency pupil units for each 66.16 pupil enrolled in a program for pupils of limited English 66.17 proficiency in accordance with sections 126.261 to 126.269 66.18 equals the lesser of one or the quotient obtained by dividing 66.19 the limited English proficiency concentration percentage for the 66.20 pupil's district of residence by 11.5. 66.21 (d) Limited English proficiency pupil units shall be 66.22 counted by the district of enrollment. 66.23 Sec. 3. Minnesota Statutes 1996, section 124.2613, 66.24 subdivision 6, is amended to read: 66.25 Subd. 6. [PREPAREDNESS REVENUE.] (a) A qualifying school 66.26 district is eligible for first-grade preparedness revenue equal 66.27 to the basic formula allowance for that year times the number of 66.28 pupil units calculated according to paragraph (b) in each 66.29 qualifying school site. If the first-grade preparedness revenue 66.30 is insufficient to fully fund the formula amounts, the 66.31 commissioner shall prorate the revenue provided to each 66.32 qualifying school site. 66.33 (b) A pupil enrolled in a half-day first-grade preparedness 66.34 program under this section is counted as.53.55 pupil units. A 66.35 pupil enrolled in a full-day first-grade preparedness program 66.36 under this section is counted as a kindergarten pupil under 67.1 section 124.17, subdivision 1, plus an additional.53.55 pupil 67.2 units. 67.3 (c) This revenue must supplement and not replace 67.4 compensatory revenue that the district uses for the same or 67.5 similar purposes under chapter 124A. 67.6 (d) A pupil enrolled in the first grade preparedness 67.7 program at a qualifying school site is eligible for 67.8 transportation under section 123.39, subdivision 1. 67.9 (e) First grade preparedness revenue paid to a charter 67.10 school for which a school district is providing transportation 67.11 according to section 120.064, subdivision 15, shall be decreased 67.12 by an amount equal to the product of $176 times the pupil units 67.13 calculated according to paragraph (b). This amount shall be 67.14 paid to the school district for transportation costs. 67.15 Sec. 4. Minnesota Statutes 1996, section 124.273, 67.16 subdivision 1e, is amended to read: 67.17 Subd. 1e. [AID.] A district's limited English proficiency 67.18 aid for fiscal year1996 and later1998 equals the aid 67.19 percentage factor under section 124.3201, subdivision 1, times 67.20 the district's limited English proficiency revenue. 67.21 Sec. 5. Minnesota Statutes 1996, section 124.273, 67.22 subdivision 1f, is amended to read: 67.23 Subd. 1f. [STATE TOTAL LEP REVENUE.] (a) The state total 67.24 limited English proficiency programs revenue for fiscal 67.25 year19961998 equals$12,202,000$14,629,000. The state total 67.26 limited English proficiency programs revenue for fiscal 67.27 year19971999 equals$13,299,000$16,092,000. 67.28 (b) The state total limited English proficiency programs 67.29 revenue for later fiscal years equals: 67.30 (1) the state total limited English proficiency programs 67.31 revenue for the preceding fiscal year; times 67.32 (2) the program growth factor under section 124.3201, 67.33 subdivision 1; times 67.34 (3) the ratio of the state total number of pupils with 67.35 limited English proficiency for the current fiscal year to the 67.36 state total number of pupils with limited English proficiency 68.1 for the preceding fiscal year. 68.2 Sec. 6. Minnesota Statutes 1996, section 124.273, 68.3 subdivision 5, is amended to read: 68.4 Subd. 5. [NOTIFICATION;AID PAYMENTSREVENUE.] The 68.5 department must promptly inform each applicant district of the 68.6 amount ofaidrevenue it will receive pursuant to this section. 68.7 Sec. 7. [124.3111] [ASSURANCE OF MASTERY PROGRAMS.] 68.8 Subdivision 1. [ELIGIBLE DISTRICTS.] A district with a 68.9 local process to review curriculum and instruction may provide 68.10 an assurance of mastery program to eligible pupils. 68.11 Subd. 2. [ELIGIBLE PUPILS.] A pupil is eligible to receive 68.12 services through an assurance of mastery program if the pupil 68.13 has not demonstrated progress toward mastering the required 68.14 graduation standards, after receiving instruction that was 68.15 designed to enable the pupil to make progress toward mastering 68.16 the required graduation standards in a regular classroom 68.17 setting. To determine pupil eligibility, a district must use a 68.18 process adopted by the school board to review curriculum and 68.19 instruction, for the subjects and at the grade level at which 68.20 the district uses the revenue. 68.21 Subd. 3. [ELIGIBLE SERVICES.] (a) Assurance of mastery 68.22 programs may provide direct instructional services to an 68.23 eligible pupil, or a group of eligible pupils, under the 68.24 following conditions in paragraphs (b) to (d). 68.25 (b) Instruction may be provided at one or more grade levels 68.26 from kindergarten to grade 8. If an assessment of pupils' needs 68.27 within a district demonstrates that the eligible pupils in 68.28 grades kindergarten to grade 8 are being appropriately served, a 68.29 district may serve eligible pupils in grades 9 to 12. 68.30 (c) Instruction must be provided under the supervision of 68.31 the eligible pupil's regular classroom teacher. Instruction may 68.32 be provided by the eligible pupil's classroom teacher, by 68.33 another teacher, by a team of teachers, or by an education 68.34 assistant or aide. A special education teacher may provide 68.35 instruction, but instruction that is provided under this section 68.36 is not eligible for aid under section 124.3201. 69.1 (d) The instruction that is provided must differ from the 69.2 initial instruction the pupil received in the regular classroom 69.3 setting. The instruction may differ by presenting different 69.4 curriculum than was initially presented in the regular classroom 69.5 or by presenting the same curriculum: 69.6 (1) at a different rate or in a different sequence than it 69.7 was initially presented; 69.8 (2) using different teaching methods or techniques than 69.9 were used initially; or 69.10 (3) using different instructional materials than were used 69.11 initially. 69.12 Sec. 8. Minnesota Statutes 1996, section 124.312, 69.13 subdivision 4, is amended to read: 69.14 Subd. 4. [INTEGRATION REVENUE.] For fiscalyearyears 69.15 1996, 1997, andlater fiscal years1998, integration revenue 69.16 equals the sum of integration aid and integration levy under 69.17 section 124.912, subdivision 2. 69.18 Sec. 9. Minnesota Statutes 1996, section 124.312, 69.19 subdivision 5, is amended to read: 69.20 Subd. 5. [INTEGRATION AID.] For fiscalyearyears 1996, 69.21 1997, andlater fiscal years1998, integration aid equals the 69.22 following amounts: 69.23 (1) for independent school district No. 709, Duluth, 69.24 $1,385,000; 69.25 (2) for independent school district No. 625, St. Paul, 69.26 $8,090,700; and 69.27 (3) for special school district No. 1, Minneapolis, 69.28 $9,368,300. 69.29 Sec. 10. Minnesota Statutes 1996, section 124.313, is 69.30 amended to read: 69.31 124.313 [TARGETED NEEDS REVENUE.] 69.32 For fiscalyearyears 1996, 1997, andthereafter1998, a 69.33 school district's targeted needs revenue equals the sum of: 69.34 (1) assurance of mastery revenue according to section 69.35 124.311; plus 69.36 (2) the district's limited English proficiency revenue 70.1 computed according to section 124.273, subdivision 1d; plus 70.2 (3) integration revenue computed according to section 70.3 124.312, subdivision 4. 70.4 Sec. 11. Minnesota Statutes 1996, section 124.314, 70.5 subdivision 1, is amended to read: 70.6 Subdivision 1. [AID.] For fiscalyearyears 1996, 1997, 70.7 andthereafter1998, a school district's targeted needs aid 70.8 equals the sum of its assurance of mastery aid according to 70.9 section 124.311, its limited English proficiency aid according 70.10 to section 124.273, subdivision 1e, and its integration aid 70.11 according to section 124.312, subdivision 5. 70.12 Sec. 12. Minnesota Statutes 1996, section 124.314, 70.13 subdivision 2, is amended to read: 70.14 Subd. 2. [LEVY.] For fiscalyearyears 1996, 1997, and 70.15thereafter1998, a school district's targeted needs levy equals 70.16 the sum of its integration levy under section 124.912, 70.17 subdivision 2, and that portion of its special education levy 70.18 attributed to the limited English proficiency program. 70.19 Sec. 13. [124.315] [INTEGRATION REVENUE.] 70.20 Subdivision 1. [USE OF THE REVENUE.] Integration revenue 70.21 under this section must be used for programs established under a 70.22 desegregation plan mandated by the state board or under court 70.23 order, to increase learning opportunities and reduce the 70.24 learning gap between learners living in high concentrations of 70.25 poverty and their peers. 70.26 Subd. 2. [SEPARATE ACCOUNT.] Integration revenue shall be 70.27 maintained in a separate account to identify expenditures for 70.28 salaries and programs related to this revenue. 70.29 Subd. 3. [INTEGRATION REVENUE.] For fiscal year 1999 and 70.30 later fiscal years, integration revenue equals the following 70.31 amounts: 70.32 (1) for independent school district No. 709, Duluth, $199 70.33 times the actual pupil units for the school year; 70.34 (2) for independent school district No. 625, St. Paul, $440 70.35 times the actual pupil units for the school year; 70.36 (3) for special school district No. 1, Minneapolis, $543 71.1 times the actual pupil units for the school year; and 71.2 (4) for a district not listed in clause (1), (2), or (3) 71.3 that is required to implement a plan according to the 71.4 requirements of Minnesota Rules, parts 3535.0200 to 3535.2200, 71.5 the lesser of the actual cost of implementing the plan during 71.6 the fiscal year or $96 times the actual pupil units for the 71.7 school year. 71.8 Subd. 4. [INTEGRATION LEVY.] A district may levy an amount 71.9 equal to 46 percent of the district's integration revenue as 71.10 defined in subdivision 3. 71.11 Subd. 5. [INTEGRATION AID.] A district's integration aid 71.12 equals 54 percent of the district's integration revenue as 71.13 defined in subdivision 3. 71.14 Subd. 6. [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 71.15 integration aid under subdivision 5 must be adjusted for each 71.16 pupil attending a nonresident district under sections 120.062, 71.17 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22. 71.18 The adjustments must be made according to this subdivision. 71.19 (b) Aid paid to the district of the pupil's residence must 71.20 be reduced by an amount equal to the revenue per actual pupil 71.21 unit of the resident district times the number of actual pupil 71.22 units attributable to the pupil for the time the pupil is 71.23 enrolled in a nonresident district. 71.24 (c) Aid paid to a district serving nonresidents must be 71.25 increased by an amount equal to the aid reduction to the 71.26 resident district under paragraphs (b) and (d). 71.27 (d) If the amount of the reduction to be made from the aid 71.28 of a district is greater than the amount of aid otherwise due 71.29 the district, the excess reduction must be made from other state 71.30 aids due the district. 71.31 Sec. 14. Minnesota Statutes 1996, section 124.3201, 71.32 subdivision 1, is amended to read: 71.33 Subdivision 1. [DEFINITIONS.] For the purposes of this 71.34 section and sections 124.3202 and 124.321, the definitions in 71.35 this subdivision apply. 71.36 (a) "Base year" for fiscal year1996 and fiscal year 199772.1means the 1994 summer program and the 1994-1995 school year.72.2Base year for1998 and later fiscal years means the second 72.3 fiscal year preceding the fiscal year for which aid will be paid. 72.4 (b) "Basic revenue" has the meaning given it in section 72.5 124A.22, subdivision 2. For the purposes of computing basic 72.6 revenue pursuant to this section, each child with a disability 72.7 shall be counted as prescribed in section 124.17, subdivision 1. 72.8 (c) "Essential personnel" means teachers, related services, 72.9 and support services staff providing direct services to students. 72.10 (d) "Average daily membership" has the meaning given it in 72.11 section 124.17. 72.12 (e) "Program growth factor" means 1.00 for fiscal year199872.13 2000 and later. 72.14 (f) "Aid percentage factor" means 60 percent for fiscal 72.15 year 1996, 70 percent for fiscal year 1997, 80 percent for 72.16 fiscal year 1998, 90 percent for fiscal year 1999, and 100 72.17 percent for fiscal years 2000 and later. 72.18 (g) "Levy percentage factor" means 100 minus the aid 72.19 percentage factor for that year. 72.20 Sec. 15. Minnesota Statutes 1996, section 124.3201, 72.21 subdivision 2, is amended to read: 72.22 Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] The special 72.23 education base revenue equals the sum of the following amounts 72.24 computed using base year data: 72.25 (1) 68 percent of the salary of each essential person 72.26 employed in the district's program for children with a 72.27 disability during the regular school year, whether the person is 72.28 employed by one or more districts; 72.29 (2) for the Minnesota state academy for the deaf or the 72.30 Minnesota state academy for the blind, 68 percent of the salary 72.31 of each instructional aide assigned to a child attending the 72.32 academy, if that aide is required by the child's individual 72.33 education plan; 72.34 (3) for special instruction and services provided to any 72.35 pupil by contracting with public, private, or voluntary agencies 72.36 other than school districts, in place of special instruction and 73.1 services provided by the district, 52 percent of the difference 73.2 between the amount of the contract and the basic revenue of the 73.3 district for that pupil for the fraction of the school day the 73.4 pupil receives services under the contract; 73.5 (4) for special instruction and services provided to any 73.6 pupil by contracting for services with public, private, or 73.7 voluntary agencies other than school districts, that are 73.8 supplementary to a full educational program provided by the 73.9 school district, 52 percent of the amount of the contract for 73.10 that pupil; 73.11 (5) for supplies and equipment purchased or rented for use 73.12 in the instruction of children with a disability an amount equal 73.13 to 47 percent of the sum actually expended by the district but 73.14 not to exceed an average of $47 in any one school year for each 73.15 child with a disability receiving instruction;and73.16 (6) for fiscal years 1997 and later, special education base 73.17 revenue shall include amounts under clauses (1) to (5) for 73.18 special education summer programs provided during the base year 73.19 for that fiscal year; and 73.20 (7) for fiscal years 1999 and later, the cost of providing 73.21 transportation services for children with disabilities under 73.22 section 124.225, subdivision 1, paragraph (b), clause (4). 73.23 Sec. 16. Minnesota Statutes 1996, section 124.3201, 73.24 subdivision 4, is amended to read: 73.25 Subd. 4. [STATE TOTAL SPECIAL EDUCATION REVENUE.] The 73.26 state total special education revenue for fiscal year19961998 73.27 equals$327,846,000$358,542,000. The state total special 73.28 education revenue for fiscal year19971999 equals 73.29$347,810,000$435,322,000. The state total special education 73.30 revenue for later fiscal years equals: 73.31 (1) the state total special education revenue for the 73.32 preceding fiscal year; times 73.33 (2) the program growth factor; times 73.34 (3) the ratio of the state total average daily membership 73.35 for the current fiscal year to the state total average daily 73.36 membership for the preceding fiscal year. 74.1 Sec. 17. Minnesota Statutes 1996, section 124.321, 74.2 subdivision 1, is amended to read: 74.3 Subdivision 1. [LEVY EQUALIZATION REVENUE.] (a) For fiscal 74.4years 1996 and lateryear 1999, special education levy 74.5 equalization revenue for a school district, excluding an 74.6 intermediate school district, equals the sum of the following 74.7 amounts: 74.8 (1) the levy percentage factor for that year times the 74.9 district's special education revenue under section 124.3201; 74.10 plus 74.11 (2) the levy percentage factor for that year times the 74.12 district's special education summer program revenue under 74.13 section 124.3202; plus 74.14 (3) the levy percentage factor for that year times the 74.15 district's special education excess cost revenue under section 74.16 124.323; plus 74.17 (4) the levy percentage factor for that year times the 74.18 district's secondary vocational education for children with a 74.19 disability revenue under section 124.574; plus74.20(5) the levy percentage factor for that year times the74.21district's limited English proficiency programs revenue under74.22section 124.273. 74.23 Sec. 18. Minnesota Statutes 1996, section 124.321, 74.24 subdivision 3, is amended to read: 74.25 Subd. 3. [SPECIAL EDUCATION LEVY.] To receive special 74.26 education levy revenue, a district may levy an amount equal to 74.27 the district's special education levy equalization revenue as 74.28 defined in subdivision 1 multiplied by the lesser of one, or the 74.29 ratio of: 74.30 (1) the quotient derived by dividing the adjusted net tax 74.31 capacity of the district for the year preceding the year the 74.32 levy is certified by the actual pupil units in the district for 74.33 the school year to which the levy is attributable, to 74.34 (2)$3,540$3,672. 74.35 Sec. 19. Minnesota Statutes 1996, section 124.323, 74.36 subdivision 1, is amended to read: 75.1 Subdivision 1. [DEFINITIONS.] In this section, the 75.2 definitions in this subdivision apply. 75.3 (a) "Unreimbursed special education cost" means the sum of 75.4 the following: 75.5 (1) expenditures for teachers' salaries, contracted 75.6 services, supplies,andequipment, and transportation services 75.7 eligible for revenue under sections 124.3201 and 124.3202; plus 75.8 (2) expenditures for tuition bills received under section 75.9 120.17 for services eligible for revenue under sections 75.10 124.3201, subdivision 2, and 124.3202, subdivision 1; minus 75.11 (3) revenue for teachers' salaries, contracted services, 75.12 supplies, and equipment under sections 124.3201 and 124.3202; 75.13 minus 75.14 (4) tuition receipts under section 120.17 for services 75.15 eligible for revenue under sections 124.3201, subdivision 2, and 75.16 124.3202, subdivision 1. 75.17 (b) "General revenue," for fiscal year 1996, means the sum 75.18 of the general education revenue according to section 124A.22, 75.19 subdivision 1, as adjusted according to section 124A.036, 75.20 subdivision 5, plus the total referendum revenue according to 75.21 section 124A.03, subdivision 1e. For fiscal years 1997 and 75.22 later, "general revenue" means the sum of the general education 75.23 revenue according to section 124A.22, subdivision 1, as adjusted 75.24 according to section 124A.036, subdivision 5, plus the total 75.25 referendum revenue minus transportation sparsity revenue minus 75.26 total operating capital revenue. 75.27 Sec. 20. Minnesota Statutes 1996, section 124.323, 75.28 subdivision 2, is amended to read: 75.29 Subd. 2. [EXCESS COST REVENUE.] For19961997 and later 75.30 fiscal years, a district's special education excess cost revenue 75.31 equals70the greatest of: 75.32 (a) 70 percent of the difference between (1) the district's 75.33 unreimbursed special education cost and (2)six percent for75.34fiscal year 1996 and5.7 percentfor fiscal year 1997 and later75.35yearsof the district's general revenue; 75.36 (b) 70 percent of the difference between (1) the increase 76.1 in the district's unreimbursed special education cost between 76.2 the base year as defined in section 124.3201, subdivision 1, and 76.3 the current year and (2) 1.6 percent of the district's general 76.4 revenue; or 76.5 (c) zero. 76.6 Sec. 21. Minnesota Statutes 1996, section 124.574, 76.7 subdivision 2f, is amended to read: 76.8 Subd. 2f. [STATE TOTAL SECONDARY VOCATIONAL-DISABLED 76.9 REVENUE.] The state total secondary vocational-disabled revenue 76.10 for fiscal year19961998 equals$8,520,000$8,924,000. The 76.11 state total secondary vocational-disabled revenue for fiscal 76.12 year19971999 equals$8,830,000$8,976,000. The state total 76.13 secondary vocational-disabled revenue for later fiscal years 76.14 equals: 76.15 (1) the state total secondary vocational-disabled revenue 76.16 for the preceding fiscal year; times 76.17 (2) the program growth factor; times 76.18 (3) the ratio of the state total average daily membership 76.19 for the current fiscal year to the state total average daily 76.20 membership for the preceding fiscal year. 76.21 Sec. 22. Minnesota Statutes 1996, section 124.86, 76.22 subdivision 2, is amended to read: 76.23 Subd. 2. [REVENUE AMOUNT.] An American Indian-controlled 76.24 tribal contract or grant school that is located on a reservation 76.25 within the state and that complies with the requirements in 76.26 subdivision 1 is eligible to receive tribal contract or grant 76.27 school aid. The amount of aid is derived by: 76.28 (1) multiplying the formula allowance under section 76.29 124A.22, subdivision 2, less $176, times the difference between 76.30 (a) the actual pupil units as defined in section 124A.02, 76.31 subdivision 15, in average daily membership, excluding section 76.32 124.17, subdivision 2f, and (b) the number of pupils for the 76.33 current school year, weighted according to section 124.17, 76.34 subdivision 1, receiving benefits under section 123.933 or 76.35 123.935 or for which the school is receiving reimbursement under 76.36 section 126.23; 77.1 (2) adding to the result in clause (1) an amount equal to 77.2 the product of the formula allowance under section 124A.22, 77.3 subdivision 2, less $384 times the tribal contract AFDC pupil 77.4 units; 77.5 (3) subtracting from the result in clause(1)(2) the 77.6 amount of money allotted to the school by the federal government 77.7 through Indian School Equalization Program of the Bureau of 77.8 Indian Affairs, according to Code of Federal Regulations, title 77.9 25, part 39, subparts A to E, for the basic program as defined 77.10 by section 39.11, paragraph (b), for the base rate as applied to 77.11 kindergarten through twelfth grade, excluding small school 77.12 adjustments and additional weighting, but not money allotted 77.13 through subparts F to L for contingency funds, school board 77.14 training, student training, interim maintenance and minor 77.15 repair, interim administration cost, prekindergarten, and 77.16 operation and maintenance, and the amount of money that is 77.17 received according to section 126.23; 77.18(3)(4) dividing the result in clause(2)(3) by the sum 77.19 of the actual pupil units in average daily membership, excluding 77.20 section 124.17, subdivision 2f, plus the tribal contract AFDC 77.21 pupil units; and 77.22(4)(5) multiplying the sum of the actual pupil units, 77.23 including section 124.17, subdivision 2f, in average daily 77.24 membership plus the tribal contract AFDC pupil units by the 77.25 lesser of $1,500 or thesum of theresult in clause(3) plus77.26$300(4). 77.27 Sec. 23. Minnesota Statutes 1996, section 124.86, is 77.28 amended by adding a subdivision to read: 77.29 Subd. 5. [TRIBAL CONTRACT PUPIL UNITS.] Pupil units for 77.30 pupils enrolled in tribal contract schools shall be used only 77.31 for the purpose of computing tribal contract aid according to 77.32 this section. 77.33 Sec. 24. [APPROPRIATIONS.] 77.34 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 77.35 LEARNING.] The sums indicated in this section are appropriated 77.36 from the general fund to the department of children, families, 78.1 and learning for the fiscal years designated. 78.2 Subd. 2. [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 78.3 For grants to American Indian language and culture education 78.4 programs according to Minnesota Statutes, section 126.54, 78.5 subdivision 1: 78.6 $591,000 ..... 1998 78.7 $591,000 ..... 1999 78.8 The 1998 appropriation includes $59,000 for 1997 and 78.9 $532,000 for 1998. 78.10 The 1999 appropriation includes $59,000 for 1998 and 78.11 $532,000 for 1999. 78.12 Any balance in the first year does not cancel but is 78.13 available in the second year. 78.14 Subd. 3. [AMERICAN INDIAN EDUCATION.] (a) For certain 78.15 American Indian education programs in school districts: 78.16 $175,000 ..... 1998 78.17 $175,000 ..... 1999 78.18 The 1998 appropriation includes $17,000 for 1997 and 78.19 $158,000 for 1998. 78.20 The 1999 appropriation includes $17,000 for 1998 and 78.21 $158,000 for 1999. 78.22 (b) These appropriations are available for expenditure with 78.23 the approval of the commissioner of the department of children, 78.24 families, and learning. 78.25 (c) The commissioner must not approve the payment of any 78.26 amount to a school district or school under this subdivision 78.27 unless that school district or school is in compliance with all 78.28 applicable laws of this state. 78.29 (d) Up to the following amounts may be distributed to the 78.30 following schools and school districts for each fiscal year: 78.31 $54,800, Pine Point School; $9,800 to independent school 78.32 district No. 166, Cook county; $14,900 to independent school 78.33 district No. 432, Mahnomen; $14,200 to independent school 78.34 district No. 435, Waubun; $42,200 to independent school district 78.35 No. 707, Nett Lake; and $39,100 to independent school district 78.36 No. 38, Red Lake. These amounts must be spent only for the 79.1 benefit of American Indian pupils and to meet established state 79.2 educational standards or statewide requirements. 79.3 (e) Before a district or school can receive money under 79.4 this subdivision, the district or school must submit, to the 79.5 commissioner, evidence that it has complied with the uniform 79.6 financial accounting and reporting standards act, Minnesota 79.7 Statutes, sections 121.904 to 121.917. 79.8 Subd. 4. [AMERICAN INDIAN POST-SECONDARY PREPARATION 79.9 GRANTS.] For American Indian post-secondary preparation grants 79.10 according to Minnesota Statutes, section 124.481: 79.11 $857,000 ..... 1998 79.12 $857,000 ..... 1999 79.13 Any balance in the first year does not cancel but is 79.14 available in the second year. 79.15 Subd. 5. [AMERICAN INDIAN SCHOLARSHIPS.] For American 79.16 Indian scholarships according to Minnesota Statutes, section 79.17 124.48: 79.18 $1,600,000 ..... 1998 79.19 $1,600,000 ..... 1999 79.20 Any balance in the first year does not cancel but is 79.21 available in the second year. 79.22 Subd. 6. [INDIAN TEACHER PREPARATION GRANTS.] (a) For 79.23 joint grants to assist Indian people to become teachers: 79.24 $190,000 ..... 1998 79.25 $190,000 ..... 1999 79.26 (b) Up to $70,000 each year is for a joint grant to the 79.27 University of Minnesota at Duluth and the Duluth school district. 79.28 (c) Up to $40,000 each year is for a joint grant to each of 79.29 the following: 79.30 (1) Bemidji state university and the Red Lake school 79.31 district; 79.32 (2) Moorhead state university and a school district located 79.33 within the White Earth reservation; and 79.34 (3) Augsburg college, independent school district No. 625, 79.35 St. Paul, and the Minneapolis school district. 79.36 (d) Money not used for students at one location may be 80.1 transferred for use at another location. 80.2 (e) Any balance in the first year does not cancel but is 80.3 available in the second year. 80.4 Subd. 7. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 80.5 school aid according to Minnesota Statutes, section 124.86: 80.6 $2,593,000 ..... 1998 80.7 $2,908,000 ..... 1999 80.8 The 1998 appropriation includes $74,000 for 1997 and 80.9 $2,519,000 for 1998. 80.10 The 1999 appropriation includes $279,000 for 1998 and 80.11 $2,629,000 for 1999. 80.12 Subd. 8. [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For 80.13 early childhood family education programs at tribal contract 80.14 schools: 80.15 $68,000 ..... 1998 80.16 $68,000 ..... 1999 80.17 Subd. 9. [AMERICAN SIGN LANGUAGE; TEACHER EDUCATION 80.18 HEARING.] To assist school districts in educating teachers in 80.19 American sign language: 80.20 $13,000 ..... 1998 80.21 $12,000 ..... 1999 80.22 Any balance in the first year does not cancel but is 80.23 available in the second year. 80.24 Subd. 10. [MEXICAN ORIGIN EDUCATION GRANTS.] For grants 80.25 for a Mexican origin education pilot grant program: 80.26 $50,000 ..... 1998 80.27 $25,000 ..... 1999 80.28 Any balance in the first year does not cancel but is 80.29 available in the second year. 80.30 Subd. 11. [LAY ADVOCATES.] To pay or reimburse lay 80.31 advocates for their time and expense as provided in Minnesota 80.32 Statutes, section 120.17: 80.33 $10,000 ..... 1998 80.34 This appropriation is available until June 30, 1999. 80.35 Subd. 12. [OPTIONS PLUS PILOT GRANTS.] For grants to 80.36 school districts for options plus pilot programs: 81.1 $150,000 ..... 1998 81.2 Each grant shall not exceed $50,000. 81.3 This appropriation is available until June 30, 1999. 81.4 Subd. 13. [MAGNET SCHOOL GRANTS.] For magnet school and 81.5 program grants: 81.6 $1,750,000 ..... 1998 81.7 $1,750,000 ..... 1999 81.8 These amounts must be used for planning and developing 81.9 magnet schools and magnet programs. 81.10 Subd. 14. [INTEGRATION PROGRAMS.] For grants according to: 81.11 minority fellowship grants according to Laws 1994, chapter 647, 81.12 article 8, section 29; minority teacher incentives according to 81.13 Minnesota Statutes, section 124.278; teachers of color grants 81.14 according to Minnesota Statutes, section 125.623; and cultural 81.15 exchange grants according to Minnesota Statutes, section 126.43: 81.16 $1,000,000 ..... 1998 81.17 $1,000,000 ..... 1999 81.18 Any balance in the first year does not cancel but is 81.19 available in the second year. 81.20 In awarding teacher of color grants, priority must be given 81.21 to districts that have students who are currently in the process 81.22 of completing their academic program. 81.23 Subd. 15. [SPECIAL EDUCATION AID.] For special education 81.24 aid according to Minnesota Statutes, section 124.32: 81.25 $282,508,000 ..... 1998 81.26 $381,302,000 ..... 1999 81.27 The 1998 appropriation includes $24,346,000 for 1997 and 81.28 $258,162,000 for 1998. 81.29 The 1999 appropriation includes $28,684,000 for 1998 and 81.30 $352,618,000 for 1999. 81.31 Subd. 16. [AID FOR CHILDREN WITH A DISABILITY.] For aid 81.32 according to Minnesota Statutes, section 124.32, subdivision 6, 81.33 for children with a disability placed in residential facilities 81.34 within the district boundaries for whom no district of residence 81.35 can be determined: 81.36 $586,000 ..... 1998 82.1 $644,000 ..... 1999 82.2 If the appropriation for either year is insufficient, the 82.3 appropriation for the other year is available. Any balance in 82.4 the first year does not cancel but is available in the second 82.5 year. 82.6 Subd. 17. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 82.7 teacher travel for home-based services according to Minnesota 82.8 Statutes, section 124.32, subdivision 2b: 82.9 $107,000 ..... 1998 82.10 $111,000 ..... 1999 82.11 The 1998 appropriation includes $8,000 for 1997 and $99,000 82.12 for 1998. 82.13 The 1999 appropriation includes $10,000 for 1998 and 82.14 $101,000 for 1999. 82.15 Subd. 18. [SPECIAL EDUCATION EXCESS COST AID.] For excess 82.16 cost aid: 82.17 $16,835,000 ..... 1998 82.18 $29,127,000 ..... 1999 82.19 The 1998 appropriation includes $800,000 for 1997 and 82.20 $16,035,000 for 1998. 82.21 The 1999 appropriation includes $1,781,000 for 1998 and 82.22 $27,346,000 for 1999. 82.23 Subd. 19. [TARGETED NEEDS AID.] For targeted needs aid: 82.24 $45,590,000 ..... 1998 82.25 $ 2,717,000 ..... 1999 82.26 (a) Of the 1998 amount, $930,000 is for 1997 limited 82.27 English proficiency aid and $12,197,000 is for 1998 limited 82.28 English proficiency aid. Of the 1998 amount, $1,354,000 is for 82.29 1997 assurance of mastery aid and $12,265,000 is for 1998 82.30 assurance of mastery aid. Of the 1998 amount, $18,844,000 is 82.31 for 1998 integration aid. 82.32 (b) Of the 1999 amount, $1,355,000 is for 1998 limited 82.33 English proficiency aid and $0 is for 1999 limited English 82.34 proficiency aid. Of the 1999 amount, $1,362,000 is for 1998 82.35 assurance of mastery aid and $0 is for 1999 assurance of mastery 82.36 aid. 83.1 (c) As a condition of receiving a grant, each district must 83.2 continue to report its costs according to the uniform financial 83.3 accounting and reporting system. As a further condition of 83.4 receiving a grant, each district must submit a report to the 83.5 chairs of the education committees of the legislature about the 83.6 actual expenditures it made for integration using the grant 83.7 money including achievement results. These grants may be used 83.8 to transport students attending a nonresident district under 83.9 Minnesota Statutes, section 120.062, to the border of the 83.10 resident district. A district may allocate a part of the grant 83.11 to the transportation fund for this purpose. 83.12 Subd. 20. [SECONDARY VOCATIONAL; STUDENTS WITH 83.13 DISABILITIES.] For aid for secondary vocational education for 83.14 pupils with disabilities according to Minnesota Statutes, 83.15 section 124.574: 83.16 $7,044,000 ..... 1998 83.17 $7,985,000 ..... 1999 83.18 The 1998 appropriation includes $618,000 for 1997 and 83.19 $6,426,000 for 1998. 83.20 The 1999 appropriation includes $713,000 for 1998 and 83.21 $7,272,000 for 1999. 83.22 Subd. 21. [SPECIAL PROGRAMS EQUALIZATION AID.] For special 83.23 education levy equalization aid according to Minnesota Statutes, 83.24 section 124.321: 83.25 $10,985,000 ..... 1998 83.26 $ 5,612,000 ..... 1999 83.27 The 1998 appropriation includes $1,783,000 for 1997 and 83.28 $9,202,000 for 1998. 83.29 The 1999 appropriation includes $1,022,000 for 1998 and 83.30 $4,590,000 for 1999. 83.31 Subd. 22. [LOW-INCOME CONCENTRATION GRANTS.] For 83.32 low-income concentration grants according to Laws 1994, chapter 83.33 647, article 8, section 43: 83.34 $1,000,000 ..... 1998 83.35 Subd. 23. [INTEGRATION AID.] For integration aid: 83.36 $26,124,000 ..... 1999 84.1 This appropriation is based on an entitlement of 84.2 $29,026,000. 84.3 Subd. 24. [BASIC SKILLS SUMMER SCHOOL.] For basic skills 84.4 summer school programs, according to Minnesota Statutes, section 84.5 124.17, subdivision 5: 84.6 $3,395,000 ..... 1998 84.7 $4,549,000 ..... 1999 84.8 The 1998 appropriation includes $0 for 1997 and $3,395,000 84.9 for 1998. 84.10 The 1999 appropriation includes $377,000 for 1998 and 84.11 $4,172,000 for 1999. 84.12 Sec. 25. [REPEALER.] 84.13 Subdivision 1. [TAXES PAYABLE IN 1998.] Minnesota Statutes 84.14 1996, section 124.912, subdivisions 2 and 3, are repealed 84.15 effective for taxes payable in 1998. 84.16 Subd. 2. [REVENUE FOR FISCAL YEAR 1999.] Minnesota 84.17 Statutes 1996, sections 124.311; 124.312; 124.313; and 124.314; 84.18 and Laws 1994, chapter 647, article 8, section 43, are repealed 84.19 effective for revenue for fiscal year 1999. 84.20 Subd. 3. [JULY 1, 1996] Minnesota Statutes 1996, section 84.21 124.3201, subdivisions 2a and 2b, are repealed effective 84.22 retroactively to July 1, 1996. 84.23 Sec. 26. [EFFECTIVE DATE.] 84.24 Section 1 is effective for the 1998 basic skills summer 84.25 school program. Sections 3 and 20 are effective retroactively 84.26 to July 1, 1996. Sections 17 and 18 are effective for revenue 84.27 for fiscal year 1999. Section 19 is effective July 1, 1998. 84.28 ARTICLE 3 84.29 COMMUNITY AND SCHOOL SERVICES 84.30 Section 1. [APPROPRIATIONS.] 84.31 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 84.32 LEARNING.] The sums indicated in this section are appropriated 84.33 from the general fund to the department of children, families, 84.34 and learning for the fiscal years designated. 84.35 Subd. 2. [ADULT BASIC EDUCATION AID.] For adult basic 84.36 education aid according to Minnesota Statutes, sections 124.26 85.1 in fiscal year 1998 and 124.2601 in fiscal year 1999: 85.2 $9,319,000 ..... 1998 85.3 $9,424,000 ..... 1999 85.4 The 1998 appropriation includes $837,000 for 1997 and 85.5 $8,482,000 for 1998. 85.6 The 1999 appropriation includes $942,000 for 1998 and 85.7 $8,482,000 for 1999. 85.8 Up to $199,000 each year may be used for contracts with 85.9 private, nonprofit organizations for approved programs. 85.10 Subd. 3. [ADULT GRADUATION AID.] For adult graduation aid 85.11 according to Minnesota Statutes, section 124.261: 85.12 $2,245,000 ..... 1998 85.13 $2,245,000 ..... 1999 85.14 The 1998 appropriation includes $224,000 for 1997 and 85.15 $2,021,000 for 1998. 85.16 The 1999 appropriation includes $224,000 for 1998 and 85.17 $2,021,000 for 1999. 85.18 Subd. 4. [ALCOHOL-IMPAIRED DRIVER.] (a) For grants with 85.19 funds received under Minnesota Statutes, section 171.29, 85.20 subdivision 2, paragraph (b), clause (4): 85.21 $514,000 ..... 1998 85.22 $514,000 ..... 1999 85.23 (b) These appropriations are from the alcohol-impaired 85.24 driver account of the special revenue fund. Any funds credited 85.25 for the department of children, families, and learning to the 85.26 alcohol-impaired driver account of the special revenue fund in 85.27 excess of the amounts appropriated in this subdivision are 85.28 appropriated to the department of children, families, and 85.29 learning and available in fiscal year 1998 and fiscal year 1999. 85.30 (c) Up to $226,000 each year may be used by the department 85.31 of children, families, and learning to contract for services to 85.32 school districts stressing the dangers of driving after 85.33 consuming alcohol. No more than five percent of this amount may 85.34 be used for administrative costs by the contract recipients. 85.35 (d) Up to $88,000 each year may be used for grants to 85.36 support student-centered programs to discourage driving after 86.1 consuming alcohol. 86.2 (e) Up to $200,000 and any additional funds each year may 86.3 be used for chemical abuse prevention grants. 86.4 Subd. 5. [GED TESTS.] For payment of 60 percent of the 86.5 costs of GED tests: 86.6 $125,000 ..... 1998 86.7 $125,000 ..... 1999 86.8 Any balance in the first year does not cancel but is 86.9 available in the second year. 86.10 Subd. 6. [VIOLENCE PREVENTION EDUCATION GRANTS.] For 86.11 violence prevention education grants: 86.12 $1,500,000 ..... 1998 86.13 $1,500,000 ..... 1999 86.14 Of the amount each year, $50,000 is for program 86.15 administration. 86.16 Any balance in the first year does not cancel but is 86.17 available in the second year. 86.18 Subd. 7. [MALE RESPONSIBILITY.] For male responsibility 86.19 grants: 86.20 $375,000 ..... 1998 86.21 $375,000 ..... 1999 86.22 The commissioner of children, families, and learning may 86.23 enter into cooperative agreements with the commissioner of human 86.24 services to access federal money for child support and paternity 86.25 education programs. 86.26 Any balance in the first year does not cancel but is 86.27 available in the second year. 86.28 Subd. 8. [EARLY INTERVENTION GRANTS.] For grants to 86.29 intervention programs for 6 to 12 year olds: 86.30 $1,500,000 ..... 1998 86.31 $1,500,000 ..... 1999 86.32 Any balance available in the first year does not cancel but 86.33 is available in the second year. 86.34 Subd. 9. [AFTER SCHOOL ENRICHMENT GRANTS.] For after 86.35 school enrichment grants according to Laws 1996, chapter 412, 86.36 article 4, section 30: 87.1 $5,000,000 ..... 1998 87.2 $5,000,000 ..... 1999 87.3 The commissioner may use up to five percent of this 87.4 appropriation to provide technical assistance and evaluation to 87.5 community organizations. 87.6 Any balance available in the first year does not cancel but 87.7 is available in the second year. 87.8 Subd. 10. [ABUSED CHILDREN.] For abused children programs 87.9 according to Minnesota Statutes, section 119A.21: 87.10 $1,048,000 ..... 1998 87.11 $1,079,000 ..... 1999 87.12 Any balance available in the first year does not cancel but 87.13 is available in the second year. 87.14 Subd. 11. [DRUG POLICY AND VIOLENCE PREVENTION PROGRAMS.] 87.15 For drug policy, violence prevention, and family visitation 87.16 programs: 87.17 $2,912,000 ..... 1998 87.18 $2,980,000 ..... 1999 87.19 Any balance available in the first year does not cancel but 87.20 is available in the second year. 87.21 Subd. 12. [CHILDREN'S TRUST FUND.] For children's trust 87.22 fund according to Minnesota Statutes, sections 119A.12 and 87.23 119A.13: 87.24 $247,000 ..... 1998 87.25 $247,000 ..... 1999 87.26 Any balance available in the first year does not cancel but 87.27 is available in the second year. 87.28 Subd. 13. [MINNESOTA ECONOMIC OPPORTUNITY GRANTS.] For 87.29 Minnesota economic opportunity grants: 87.30 $9,000,000 ..... 1998 87.31 $9,000,000 ..... 1999 87.32 Of this appropriation, the commissioner may use up to 8.7 87.33 percent each year for state operations. 87.34 Any balance available in the first year does not cancel but 87.35 is available in the second year. 87.36 Subd. 14. [TRANSITIONAL HOUSING PROGRAMS.] For 88.1 transitional housing programs: 88.2 $935,000 ..... 1998 88.3 $935,000 ..... 1999 88.4 Any balance available in the first year does not cancel but 88.5 is available in the second year. 88.6 Subd. 15. [EMERGENCY FOOD ASSISTANCE.] For emergency food 88.7 assistance according to Laws 1995, chapter 224, section 5, 88.8 subdivision 3: 88.9 $97,000 ..... 1998 88.10 $97,000 ..... 1999 88.11 Any balance available in the first year does not cancel but 88.12 is available in the second year. 88.13 Subd. 16. [FOOD BANK PROGRAM.] For foodshelf programs 88.14 according to Minnesota Statutes, section 268.55: 88.15 $700,000 ..... 1998 88.16 $700,000 ..... 1999 88.17 Any balance available in the first year does not cancel but 88.18 is available in the second year. 88.19 Subd. 17. [HEAD START PROGRAM.] For Head Start programs 88.20 according to Minnesota Statutes, section 268.914: 88.21 $13,506,000 ..... 1998 88.22 $13,506,000 ..... 1999 88.23 The commissioner may use up to two percent each year for 88.24 state operations. 88.25 Any balance available in the first year does not cancel but 88.26 is available in the second year. 88.27 ARTICLE 4 88.28 CHILDREN AMD FAMILY SUPPORT 88.29 Section 1. Minnesota Statutes 1996, section 124.2711, 88.30 subdivision 1, is amended to read: 88.31 Subdivision 1. [REVENUE.] The revenue for early childhood 88.32 family education programs for a school district equals $101.25 88.33 for19931998 and $112.70 for 1999 and later fiscal years times 88.34 the greater of: 88.35 (1) 150; or 88.36 (2) the number of people under five years of age residing 89.1 in the school district on October 1 of the previous school year. 89.2 Sec. 2. Minnesota Statutes 1996, section 124.2711, 89.3 subdivision 2a, is amended to read: 89.4 Subd. 2a. [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 89.5 obtain early childhood family education revenue, a district may 89.6 levy an amount equal to the tax rate of.609.653 percent times 89.7 the adjusted tax capacity of the district for the year preceding 89.8 the year the levy is certified. If the amount of the early 89.9 childhood family education levy would exceed the early childhood 89.10 family education revenue, the early childhood family education 89.11 levy shall equal the early childhood family education revenue. 89.12 Sec. 3. Minnesota Statutes 1996, section 124.2716, 89.13 subdivision 3, is amended to read: 89.14 Subd. 3. [EXTENDED DAY LEVY.] To obtain extended day 89.15 revenue, a school district may levy an amount equal to the 89.16 district's extended day revenue as defined in subdivision 2 89.17 multiplied by the lesser of one, or the ratio of the quotient 89.18 derived by dividing the adjusted net tax capacity of the 89.19 district for the year before the year the levy is certified by 89.20 the actual pupil units in the district for the school year to 89.21 which the levy is attributable, to$3,700$3,838. 89.22 Sec. 4. [ADDITIONAL EARLY CHILDHOOD FAMILY EDUCATION AID; 89.23 FISCAL YEAR 1998.] 89.24 If a district complies with the provisions of Minnesota 89.25 Statutes, section 121.882, it shall receive additional early 89.26 childhood family education aid for fiscal year 1998 equal to 89.27 $6.70 times the greater of: 89.28 (1) 150; or 89.29 (2) the number of people under five years of age residing 89.30 in the school district on October 1 of the previous school 89.31 year. The additional early childhood family education aid may 89.32 be used only for early childhood family education programs. 89.33 Sec. 5. [APPROPRIATIONS.] 89.34 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 89.35 LEARNING.] The sums indicated in this section are appropriated 89.36 from the general fund to the department of children, families, 90.1 and learning for the fiscal years designated. 90.2 Subd. 2. [PART H.] For the department of children, 90.3 families, and learning's share of the state's obligation under 90.4 Part H according to Minnesota Statutes, section 120.1701: 90.5 $400,000 ..... 1998 90.6 Any balance in the first year does not cancel but is 90.7 available for the second year. 90.8 Subd. 3. [ADULTS WITH DISABILITIES PROGRAM AID.] For 90.9 adults with disabilities programs according to Minnesota 90.10 Statutes, section 124.2715: 90.11 $670,000 ..... 1998 90.12 $670,000 ..... 1999 90.13 Any balance in the first year does not cancel but is 90.14 available for the second year. 90.15 Subd. 4. [COMMUNITY EDUCATION AID.] For community 90.16 education aid according to Minnesota Statutes, section 124.2713: 90.17 $1,819,000 ..... 1998 90.18 $1,611,000 ..... 1999 90.19 The 1998 appropriation includes $236,000 for 1997 and 90.20 $1,583,000 for 1998. 90.21 The 1999 appropriation includes $175,000 for 1998 and 90.22 $1,436,000 for 1999. 90.23 Subd. 5. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 90.24 childhood family education aid according to Minnesota Statutes, 90.25 section 124.2711: 90.26 $14,554,000 ..... 1998 90.27 $13,638,000 ..... 1999 90.28 The 1998 appropriation includes $1,357,000 for 1997 and 90.29 $13,197,000 for 1998. 90.30 The 1999 appropriation includes $1,466,000 for 1998 and 90.31 $12,172,000 for 1999. 90.32 $10,000 each year may be spent for evaluation of early 90.33 childhood family education programs. 90.34 Subd. 6. [EXTENDED DAY AID.] For extended day aid 90.35 according to Minnesota Statutes, section 124.2716: 90.36 $347,000 ..... 1998 91.1 $304,000 ..... 1999 91.2 The 1998 appropriation includes $37,000 for 1997 and 91.3 $310,000 for 1998. 91.4 The 1999 appropriation includes $34,000 for 1998 and 91.5 $270,000 for 1999. 91.6 Subd. 7. [FAMILY COLLABORATIVES.] For family 91.7 collaboratives according to Laws 1995, First Special Session 91.8 chapter 3, article 4, section 29, subdivision 10: 91.9 $7,500,000 ..... 1998 91.10 $7,500,000 ..... 1999 91.11 Of the appropriation, $150,000 each year is for grants 91.12 targeted to assist in providing collaborative children's library 91.13 service programs. To be eligible, a family collaborative grant 91.14 recipient must collaborate with at least one public library and 91.15 one children's or family organization. The public library must 91.16 involve the regional public library system and multitype library 91.17 system to which it belongs in the planning and provide for an 91.18 evaluation of the program. 91.19 No more than 2.5 percent of the appropriation is available 91.20 to the state to administer and evaluate the grant program. 91.21 Any balance in the first year does not cancel but is 91.22 available in the second year. 91.23 Subd. 8. [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 91.24 health and developmental screening aid according to Minnesota 91.25 Statutes, sections 123.702 and 123.7045: 91.26 $1,550,000 ..... 1998 91.27 $1,550,000 ..... 1999 91.28 The 1998 appropriation includes $155,000 for 1997 and 91.29 $1,395,000 for 1998. 91.30 The 1999 appropriation includes $155,000 for 1998 and 91.31 $1,395,000 for 1999. 91.32 Any balance in the first year does not cancel but is 91.33 available in the second year. 91.34 Subd. 9. [HEARING IMPAIRED ADULTS.] For programs for 91.35 hearing impaired adults according to Minnesota Statutes, section 91.36 121.201: 92.1 $70,000 ..... 1998 92.2 $70,000 ..... 1999 92.3 Any balance in the first year does not cancel but is 92.4 available in the second year. 92.5 Subd. 10. [LEARNING READINESS PROGRAM REVENUE.] For 92.6 revenue for learning readiness programs according to Minnesota 92.7 Statutes, sections 121.831 and 124.2615: 92.8 $10,316,000 ..... 1998 92.9 $10,405,000 ..... 1999 92.10 The 1998 appropriation includes $949,000 for 1997 and 92.11 $9,367,000 for 1998. 92.12 The 1999 appropriation includes $1,039,000 for 1998 and 92.13 $9,366,000 for 1999. 92.14 $10,000 each year may be spent for evaluation of learning 92.15 readiness programs. 92.16 Subd. 11. [WAY TO GROW.] For grants for existing way to 92.17 grow programs according to Minnesota Statutes, section 121.835: 92.18 $475,000 ..... 1998 92.19 $475,000 ..... 1999 92.20 Any balance in the first year does not cancel but is 92.21 available in the second year. 92.22 Subd. 12. [CHILD CARE ASSISTANCE.] For child care 92.23 assistance according to Minnesota Statutes, sections 119B.03 and 92.24 119B.05: 92.25 $67,065,000 ..... 1998 92.26 $97,664,000 ..... 1999 92.27 Any balance in the first year does not cancel but is 92.28 available in the second year. 92.29 Subd. 13. [CHILD CARE DEVELOPMENT.] For child care 92.30 development grants according to Minnesota Statutes, section 92.31 119B.21: 92.32 $2,865,000 ..... 1998 92.33 $1,865,000 ..... 1999 92.34 Any balance in the first year does not cancel but is 92.35 available in the second year. 92.36 Sec. 6. [REPEALER.] 93.1 Laws 1995, First Special Session chapter 3, article 4, 93.2 section 31, paragraph (a), is repealed. 93.3 Sec. 7. [EFFECTIVE DATE.] 93.4 Sections 2 and 3 are effective for revenue for fiscal year 93.5 1999. 93.6 ARTICLE 5 93.7 LIFEWORK DEVELOPMENT 93.8 Section 1. [APPROPRIATIONS.] 93.9 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 93.10 LEARNING.] The sums indicated in this section are appropriated 93.11 from the general fund to the department of children, families, 93.12 and learning for the fiscal years designated. 93.13 Subd. 2. [SECONDARY VOCATIONAL EDUCATION AID.] For 93.14 secondary vocational education aid according to Minnesota 93.15 Statutes, section 124.573: 93.16 $11,617,000 ..... 1998 93.17 $11,596,000 ..... 1999 93.18 The 1998 appropriation includes $1,180,000 for 1997 and 93.19 $10,437,000 for 1998. 93.20 The 1999 appropriation includes $1,159,000 for 1998 and 93.21 $10,437,000 for 1999. 93.22 Subd. 3. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 93.23 GRANTS.] For education and employment transitions program: 93.24 $4,000,000 ..... 1998 93.25 $4,000,000 ..... 1999 93.26 $500,000 each year is for development of MnCEPs, an 93.27 Internet-based education and employment information system. 93.28 These are one-time funds. 93.29 $1,250,000 each year is for a rebate program for employers 93.30 who offer internships and other work experiences to learners. 93.31 $400,000 each year is for youth apprenticeship program 93.32 grants. 93.33 $100,000 each year is for youth entrepreneurship grants 93.34 under Minnesota Statutes, section 116J.655. 93.35 $100,000 each year is for youth employer grants under 93.36 section 28. 94.1 $150,000 each year is for parent and community awareness 94.2 training. 94.3 $1,500,000 each year is for lifework development and 94.4 implementation activities and state-level activities, including 94.5 the governor's workforce development council. 94.6 Any balance in the first year does not cancel but is 94.7 available in the second year. 94.8 Subd. 4. [YOUTHWORKS PROGRAM.] For funding youthworks 94.9 programs according to Minnesota Statutes, sections 121.701 to 94.10 121.710: 94.11 $1,863,000 ..... 1998 94.12 $1,813,000 ..... 1999 94.13 Of the 1998 appropriation, $50,000 is for implementation 94.14 and administration of youthworks programs. 94.15 Any balance in the first year does not cancel but is 94.16 available in the second year. 94.17 ARTICLE 6 94.18 EDUCATION ORGANIZATION AND COOPERATION 94.19 Section 1. Minnesota Statutes 1996, section 124.2725, 94.20 subdivision 2, is amended to read: 94.21 Subd. 2. [COOPERATION AND COMBINATION REVENUE.] For fiscal 94.22 year 1999, cooperation and combination revenue equals$100$104 94.23 times the pupil units served in the district. For purposes of 94.24 this section, pupil units served means the number of resident 94.25 and nonresident pupil units in average daily membership 94.26 receiving instruction in the cooperating or combined district. 94.27 A district may not receive revenue under this section if it 94.28 levies under section 124.912, subdivision 4. 94.29 Sec. 2. Minnesota Statutes 1996, section 124.2726, 94.30 subdivision 2, is amended to read: 94.31 Subd. 2. [AID.] (a) Consolidation transition aid is equal 94.32 to $200 for fiscal year 1998 and $208 for fiscal year 1999 and 94.33 later times the number of actual pupil units in the newly 94.34 created district in the year of consolidation and $100 for 94.35 fiscal year 1998 and $104 for fiscal year 1999 and later times 94.36 the number of actual pupil units in the first year following the 95.1 year of consolidation. The number of pupil units used to 95.2 calculate aid in either year shall not exceed 1,000 for 95.3 districts consolidating July 1, 1994, and 1,500 for districts 95.4 consolidating July 1, 1995, and thereafter. 95.5 (b) If the total appropriation for consolidation transition 95.6 aid for any fiscal year, plus any amount transferred under 95.7 section 124.14, subdivision 7, is insufficient to pay all 95.8 districts the full amount of aid earned, the department of 95.9 children, families, and learning shall first pay the districts 95.10 in the first year following the year of consolidation the full 95.11 amount of aid earned and distribute any remaining funds to the 95.12 newly created districts in the first year of consolidation. 95.13 Sec. 3. Minnesota Statutes 1996, section 124.2727, 95.14 subdivision 6a, is amended to read: 95.15 Subd. 6a. [FISCAL YEAR 1998 DISTRICT COOPERATION REVENUE.] 95.16 A district's cooperation revenue for fiscal year 1998 is equal 95.17 to the greater of $67 times the actual pupil units or $25,000. 95.18 Sec. 4. Minnesota Statutes 1996, section 124.2727, 95.19 subdivision 6c, is amended to read: 95.20 Subd. 6c. [FISCAL YEAR 1998 DISTRICT COOPERATION AID.] A 95.21 district's cooperation aid for fiscal year 1998 is the 95.22 difference between its district cooperation revenue and its 95.23 district cooperation levy. If a district does not levy the 95.24 entire amount permitted, aid must be reduced in proportion to 95.25 the actual amount levied. 95.26 Sec. 5. Minnesota Statutes 1996, section 124.2727, 95.27 subdivision 6d, is amended to read: 95.28 Subd. 6d. [REVENUE USES.](a) A district must place its95.29district cooperation revenue in a reserved account and may only95.30use the revenue to purchase goods and services from entities95.31formed for cooperative purposes or to otherwise provide95.32educational services in a cooperative manner.95.33(b)A district that was a member of an intermediate school 95.34 district organized pursuant to chapter 136D on July 1, 1994, 95.35 mustplace its district cooperation revenue in a reserved95.36account and must allocate a portion of the reserved revenue for96.1instructional services from entities formed for cooperative96.2services for special education programs and secondary vocational96.3programs. The allocated amount is equal to the levy made96.4according to section 124.2727, subdivision 6, for taxes payable96.5in 1994 divided by the actual pupil units in the intermediate96.6school district for fiscal year 1995 times the number of actual96.7pupil units in the school district in 1995. The district must96.8use 5/11 of the revenue for special education and 6/11 of the96.9revenue for secondary vocational education. The district must96.10 demonstrate thatthe revenue is being used to provideeach child 96.11 has available the full range of special education and secondary 96.12 vocational programs and services available to each child served 96.13 by the intermediate. The secondary vocational programs and 96.14 service must meet the requirements established in an 96.15 articulation agreement developed between the state board of 96.16 education and the board of trustees of the Minnesota state 96.17 colleges and universities. 96.18(c) A district that was not a member of an intermediate96.19district organized under chapter 136D on July 1, 1994, must96.20spend at least $9 per pupil unit of its district cooperation96.21revenue on secondary vocational programs.96.22 Sec. 6. [APPROPRIATIONS.] 96.23 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 96.24 LEARNING.] The sums indicated in this section are appropriated 96.25 from the general fund to the department of children, families, 96.26 and learning for the fiscal years designated. 96.27 Subd. 2. [SPECIAL CONSOLIDATION AID.] For special 96.28 consolidation aid under Minnesota Statutes, section 124.2728: 96.29 $3,000 ..... 1998 96.30 The 1998 appropriation includes $3,000 for 1997 and -0- for 96.31 1998. 96.32 Subd. 3. [CONSOLIDATION TRANSITION AID.] For districts 96.33 consolidating under Minnesota Statutes, section 124.2726: 96.34 $1,254,000 ..... 1998 96.35 $1,151,000 ..... 1999 96.36 The 1998 appropriation includes $67,000 for 1997 and 97.1 $1,187,000 for 1998. 97.2 The 1999 appropriation includes $131,000 for 1998 and 97.3 $1,020,000 for 1999. 97.4 Any balance in the first year does not cancel but is 97.5 available in the second year. 97.6 Subd. 4. [COOPERATION AND COMBINATION AID.] For aid for 97.7 districts that cooperate and combine according to Minnesota 97.8 Statutes, section 124.2725: 97.9 $562,000 ..... 1998 97.10 $ 42,000 ..... 1999 97.11 The 1998 appropriation includes $178,000 for 1997 and 97.12 $384,000 for 1998. 97.13 The 1999 appropriation includes $42,000 for 1998 and -0- 97.14 for 1999. 97.15 Any balance in the first year does not cancel but is 97.16 available in the second year. 97.17 Subd. 5. [DISTRICT COOPERATION REVENUE.] For district 97.18 cooperation revenue aid: 97.19 $9,766,000 ..... 1998 97.20 $ 954,000 ..... 1999 97.21 The 1998 appropriation includes $1,172,000 for 1997 and 97.22 $8,594,000 for 1998. 97.23 The 1999 appropriation includes $954,000 for 1998 and -0- 97.24 for 1999. 97.25 Subd. 6. [INTERAGENCY COLLABORATION GRANTS.] For 97.26 interagency collaboration grants to plan and implement 97.27 collaborative programs between school districts, cities, 97.28 counties, and other local units of government in the governance, 97.29 administration, and operations of those local public entities: 97.30 $500,000 ..... 1998 97.31 Grants of up to $100,000 shall be awarded to plan and 97.32 implement systems of joint governance, management, and delivery 97.33 of programs and services which result in more effective and 97.34 efficient services for children, families, and adults. Programs 97.35 and services include, but are not limited to: 97.36 (1) long-range planning among local governing boards; 98.1 (2) transportation and vehicle maintenance; 98.2 (3) buildings and grounds management; 98.3 (4) food and nutrition services; 98.4 (5) business affairs; 98.5 (6) technology support; and 98.6 (7) library services. 98.7 The department of children, families, and learning shall 98.8 give preference to local units of government that have 98.9 previously demonstrated success in family collaboratives or 98.10 other collaborative efforts. 98.11 Any balance available in the first year does not cancel but 98.12 is available in the second year. 98.13 Sec. 7. [REPEALER.] 98.14 Minnesota Statutes 1996, sections 124.2727, subdivisions 98.15 6a, 6b, 6c, and 9; and 124.2728, are repealed effective for 98.16 revenue for fiscal year 1999. 98.17 Sec. 8. [EFFECTIVE DATE.] 98.18 Section 1 is effective for revenue for fiscal year 1999. 98.19 ARTICLE 7 98.20 EDUCATION EXCELLENCE 98.21 Section 1. Minnesota Statutes 1996, section 120.062, 98.22 subdivision 3, is amended to read: 98.23 Subd. 3. [CLOSED DISTRICTSLIMITED ENROLLMENT OF 98.24 NONRESIDENT PUPILS.] (a) A school board may, by 98.25 resolution,determine thatlimit the enrollment of nonresident 98.26 pupilsmay not attend any ofin its schools or programs 98.27 according to this section to a number not less than the lesser 98.28 of: 98.29 (1) one percent of the total enrollment at each grade level 98.30 in the district; or 98.31 (2) the number of district residents at that grade level 98.32 enrolled in a nonresident district according to this section. 98.33 (b) A district that limits enrollment of nonresident pupils 98.34 under paragraph (a) shall report to the commissioner by July 15 98.35 on the number of nonresident pupils denied admission due to the 98.36 limitations on the enrollment of nonresident pupils. 99.1 Sec. 2. Minnesota Statutes 1996, section 120.062, 99.2 subdivision 6, is amended to read: 99.3 Subd. 6. [NONRESIDENT DISTRICT PROCEDURES.] A district 99.4that does not exclude nonresident pupils, according to99.5subdivision 3,shall notify the parent or guardian in writing by 99.6 February 15 whether the application has been accepted or 99.7 rejected. If an application is rejected, the district must 99.8 state in the notification the reason for rejection. The parent 99.9 or guardian shall notify the nonresident district by March 1 99.10 whether the pupil intends to enroll in the nonresident 99.11 district. Notice of intent to enroll in the nonresident 99.12 district obligates the pupil to attend the nonresident district 99.13 during the following school year, unless the school boards of 99.14 the resident and the nonresident districts agree in writing to 99.15 allow the pupil to transfer back to the resident district, or 99.16 the pupil's parents or guardians change residence to another 99.17 district. If a parent or guardian does not notify the 99.18 nonresident district, the pupil may not enroll in that 99.19 nonresident district during the following school year, unless 99.20 the school boards of the resident and nonresident district agree 99.21 otherwise. The nonresident district shall notify the resident 99.22 district by March 15 of the pupil's intent to enroll in the 99.23 nonresident district. The same procedures apply to a pupil who 99.24 applies to transfer from one participating nonresident district 99.25 to another participating nonresident district. 99.26 Sec. 3. Minnesota Statutes 1996, section 120.062, 99.27 subdivision 7, is amended to read: 99.28 Subd. 7. [BASIS FOR DECISIONS.] The school board must 99.29 adopt, by resolution, specific standards for acceptance and 99.30 rejection of applications. Standards may include the capacity 99.31 of a program, class,grade level,or school building. The 99.32 school board may not reject applications for enrollment in a 99.33 particular grade level if the nonresident enrollment at that 99.34 grade level does not exceed the limit set by the board under 99.35 subdivision 3. Standards may not include previous academic 99.36 achievement, athletic or other extracurricular ability, 100.1 disabling conditions, proficiency in the English language,or100.2 previous disciplinary proceedings, or the student's district of 100.3 residence. 100.4 Sec. 4. Minnesota Statutes 1996, section 120.062, 100.5 subdivision 11, is amended to read: 100.6 Subd. 11. [INFORMATION.] A districtthat does not exclude100.7nonresident pupils according to subdivision 3shall make 100.8 information about the district, schools, programs, policies, and 100.9 procedures available to all interested people. 100.10 Sec. 5. [121.115] [WAIVER OF STATUTORY REQUIREMENTS.] 100.11 (a) Notwithstanding any law to the contrary, a school 100.12 district may petition the commissioner in writing to waive or 100.13 modify any statutory requirement. 100.14 (b) Before a school district submits its application to the 100.15 commissioner, the school board of the school district must hold 100.16 a public hearing to approve or disapprove the application. 100.17 During the hearing, educators, parents, and students must have 100.18 an opportunity to testify. At least seven calendar days before 100.19 the hearing, the school district must publish notice of the 100.20 hearing in at least one newspaper of general circulation within 100.21 the school district. The notice must set forth the time, date, 100.22 place, and general subject matter of the hearing. 100.23 (c) A school district must submit an approved application 100.24 to the commissioner within 15 days of the date of the district 100.25 hearing on the application. The commissioner must review and 100.26 approve or disapprove the application within 45 days of 100.27 receipt. The commissioner may disapprove any application that 100.28 contains unsound educational practices, endangers the health or 100.29 safety of students or staff, compromises equal opportunities for 100.30 learning, or does not remove an impediment to the achievement of 100.31 educational outcomes. The commissioner's decision must be in 100.32 writing and include specific reasons for the approval or 100.33 disapproval. If the commissioner fails to act within the 45-day 100.34 period, the school district may submit the application to the 100.35 state board for consideration under paragraph (d). 100.36 (d) The school district may appeal a disapproved 101.1 application or submit an application the commissioner failed to 101.2 act on to the state board within 15 days of (1) the date on 101.3 which the commissioner disapproves the application, or (2) the 101.4 end of the commissioner's 45-day period for consideration of the 101.5 application if the commissioner has not made a decision on the 101.6 application. The state board must review the application and 101.7 commissioner's decision, when a decision has been made, within 101.8 45 days of receipt. The state board's decision shall be final. 101.9 If the state board fails to act within the 45-day period, the 101.10 application shall be regarded as approved. 101.11 Sec. 6. Minnesota Statutes 1996, section 121.611, 101.12 subdivision 1, is amended to read: 101.13 Subdivision 1. [AUTHORIZATION.] Notwithstanding any law 101.14or, state board of education rule or state board of teaching 101.15 rule to the contrary,the board of teaching may allowschool 101.16 districtstomay hire nonlicensed community experts to teach in 101.17 the public schools on a limited basis according to this section. 101.18 Sec. 7. Minnesota Statutes 1996, section 121.611, 101.19 subdivision 2, is amended to read: 101.20 Subd. 2. [APPLICATIONS; CRITERIA.]The school district101.21shall apply to the board of teaching for approval to hire101.22nonlicensed teaching personnel from the community. In approving101.23or disapproving the district's application for each community101.24expert, the boardBefore hiring a nonlicensed community expert, 101.25 a school district shall consider: 101.26 (1) the qualifications of the community person whom the 101.27 district proposes to employ; 101.28 (2) the reasons for the district's need for a variance from 101.29 the teacher licensure requirements; 101.30 (3) the district's efforts to obtain licensed teachers, who 101.31 are acceptable to the school board, for the particular course or 101.32 subject area; 101.33 (4) the amount of teaching time for which the community 101.34 expert would be hired; 101.35 (5) the extent to which the district is utilizing other 101.36 nonlicensed community experts under this section; 102.1 (6) the nature of the community expert's proposed teaching 102.2 responsibility; and 102.3 (7) the proposed level of compensation to the community 102.4 expert. 102.5 Sec. 8. Minnesota Statutes 1996, section 121.611, is 102.6 amended by adding a subdivision to read: 102.7 Subd. 4. [REPORT.] A school district shall report the name 102.8 of a nonlicensed community expert hired under subdivision 1 102.9 within two weeks of the date of hire to the board of teaching. 102.10 Within two weeks of the last date of the community expert's term 102.11 of employment, the school district shall provide a report on the 102.12 community expert's performance to the state board of teaching. 102.13 These reports shall be made available to school districts for 102.14 the purposes of subdivision 1. 102.15 Sec. 9. Minnesota Statutes 1996, section 121.611, is 102.16 amended by adding a subdivision to read: 102.17 Subd. 5. [BACKGROUND CHECK.] Before hiring a nonlicensed 102.18 community expert, the school district shall conduct a criminal 102.19 background check of the applicant. The school district may also 102.20 conduct the check at any time while the person is an employee of 102.21 the district. The check shall consist of a criminal records 102.22 check of the state criminal records repository. If the 102.23 applicant has resided in Minnesota for less than five years, the 102.24 check shall also include a criminal records check of information 102.25 from the state law enforcement agencies in the states where the 102.26 person resided during the five years before moving to Minnesota, 102.27 and of the national criminal records repository, including the 102.28 criminal justice data communications network. The applicant's 102.29 failure to cooperate with the school district in conducting the 102.30 records check is reasonable cause to deny an application. The 102.31 school district may not release the results of the records check 102.32 to any person except the applicant. 102.33 Sec. 10. [121.973] [STATEWIDE INFORMATION SYSTEM.] 102.34 (a) The commissioner of children, families, and learning 102.35 shall annually collect information regarding the performance of 102.36 Minnesota's learners and other student and system performance 103.1 indicators at the discretion of the commissioner. To the extent 103.2 feasible, the commissioner shall collect the data electronically 103.3 through the UFARS, MARSS, and STARS reporting systems. 103.4 (b) The governor and legislature shall appoint an 103.5 independent entity to report annually to the public on the 103.6 performance of Minnesota learners and other student and system 103.7 performance indicators identified in paragraph (a) and on the 103.8 effectiveness of various enrollment options and learning methods. 103.9 (c) The commissioner shall provide information to the 103.10 public regarding the various education enrollment options, 103.11 including but not limited to the following: post-secondary 103.12 enrollment options, open enrollment, charter schools and use of 103.13 tax credits and deductions to enhance learning, ways for parents 103.14 to effectively be involved with their child's learning to 103.15 improve performance, and other information to assist parents. 103.16 Sec. 11. Minnesota Statutes 1996, section 123.35, is 103.17 amended by adding a subdivision to read: 103.18 Subd. 1a. [CONTRACTS FOR SERVICES.] Notwithstanding any 103.19 law to the contrary, a school board may contract with a public 103.20 or private entity to provide instructional and noninstructional 103.21 services. The board may reduce its administration accordingly. 103.22 The board shall not enter into an agreement restricting the 103.23 powers provided in this subdivision. 103.24 Sec. 12. Minnesota Statutes 1996, section 123.35, is 103.25 amended by adding a subdivision to read: 103.26 Subd. 1b. [REORGANIZATION AS A NONPROFIT ENTITY.] A school 103.27 board may reorganize its school district administration under 103.28 chapter 317A. The board and the reorganized administration 103.29 shall contract for the administration to provide instructional 103.30 and noninstructional services. The board shall not enter any 103.31 agreement restricting the powers provided in this subdivision. 103.32 Sec. 13. [123.952] [SITE-BASED FINANCING AND SITE MERIT 103.33 PAY.] 103.34 Subdivision 1. [PURPOSE.] The purpose of this section is 103.35 to: 103.36 (1) increase the performance of learners at each education 104.1 site in the state; 104.2 (2) reduce trends in dropouts; 104.3 (3) reduce inappropriate student behavior; 104.4 (4) increase parental involvement in ways which directly 104.5 result in improved student performance; 104.6 (5) enable the principal, teachers, other staff, parents, 104.7 and students, at the education site to direct resources to 104.8 education site priorities; and 104.9 (6) enable a school board to focus on the expectations it 104.10 has of the education sites throughout the district and to hold 104.11 sites accountable for results. 104.12 Subd. 2. [DEFINITION.] "Education site" means a separate 104.13 facility or program within a facility having a separate 104.14 management organization. This also includes a site with which 104.15 the district has a contract as defined in section 123.35, 104.16 subdivision 1a. 104.17 Subd. 3. [LEARNING SITE PERFORMANCE EXPECTATION 104.18 AGREEMENT.] (a) The school board in every district shall develop 104.19 a written learning site performance expectation agreement with 104.20 each education site for the purpose of setting learning 104.21 performance expectations for that site. The agreement shall 104.22 include: 104.23 (1) the previous year baseline information at the site 104.24 regarding student achievement based on the graduation standards, 104.25 remediation needs, student attendance and behavior patterns, 104.26 retention rates, dropout rates where applicable, other 104.27 nationally normed standardized tests, and other student 104.28 performance indicators at the site; 104.29 (2) the expected levels of improvement in each area of 104.30 student performance during the next year; 104.31 (3) how student performance will be measured including 104.32 assessment procedures required by law and rule; 104.33 (4) other performance expectations and measures determined 104.34 by the board, including, but not limited to, increased parental 104.35 involvement in learning activities with students, community 104.36 involvement, or other areas; 105.1 (5) frequency of site reporting to the board; and 105.2 (6) how the performance results will be made available to 105.3 parents and to the public. 105.4 (b) The board and site shall determine the method of 105.5 developing the learning site performance expectations. 105.6 (c) The learning site performance expectation agreement 105.7 must be completed not later than July prior to the beginning of 105.8 the school year. 105.9 Subd. 4. [SITE MERIT PAY.] (a) The school board in any 105.10 district may add a provision to the learning site performance 105.11 expectation agreement under subdivision 3 which includes the 105.12 awarding of additional revenue to the site if the site achieves 105.13 or exceeds the expected levels of improvement. The decision as 105.14 to whether to implement a site merit pay system, the operation 105.15 of the system, and the determination as to which education sites 105.16 shall qualify for site merit pay shall be made solely at the 105.17 discretion of the board. A determination by the board as to 105.18 whether to make an award to an education site and the amount of 105.19 the award shall be final. If site merit pay is to be awarded, 105.20 the learning site performance expectation agreement shall 105.21 include the following provisions in addition to the provisions 105.22 of subdivision 3: 105.23 (1) the maximum amount of revenue for site merit pay to be 105.24 awarded that shall not be less than the revenue generated by the 105.25 site under paragraph (d); 105.26 (2) the criteria to be used in awarding the site merit pay 105.27 based on the learning site performance expectation agreement; 105.28 (3) the information necessary to determine the amount of 105.29 progress made; 105.30 (4) the timeline for making awards to the site; and 105.31 (5) other provisions determined by the board or the site. 105.32 (b) An education site that receives site merit pay has sole 105.33 discretion over the use of the revenue as long as it is used for 105.34 an educational purpose for that site. This may include staff 105.35 development, technology, materials or equipment, or other such 105.36 educational purposes. It may also be used for additional 106.1 employee compensation to which the employee would not be 106.2 entitled to under contract or board policy and shall not be a 106.3 mandatory subject of bargaining under chapter 179A or any other 106.4 law, and shall not be a term or condition of employment. A 106.5 determination by the education site as to whether to make an 106.6 award to any individual or group of individuals and the amount 106.7 of any award shall be final and shall not be subject to review 106.8 by an arbitrator through any grievance or other process or by a 106.9 court through any appeal process. 106.10 (c) Districts entering into site merit pay agreements under 106.11 this subdivision shall inform the commissioner of this decision 106.12 not later than June 1 of the year preceding the effective school 106.13 year except that for the 1997-1998 school year, notice must be 106.14 submitted by November 1, 1997. 106.15 (d) Each school district that has established a site merit 106.16 pay program under this subdivision shall receive site merit pay 106.17 aid in the amount of $8.70 for fiscal year 1998 and $8.95 for 106.18 fiscal year 1999 and later years times the actual pupil units 106.19 enrolled at the sites with a site merit pay program. The aid 106.20 may only be used to establish and operate a site merit pay award 106.21 program. A district is not required to expend any specific 106.22 amount of aid in any year. The district shall deposit the aid 106.23 in a separate account in the general fund. 106.24 Subd. 5. [SITE-BASED FINANCING.] (a) Either the school 106.25 board or education site decision making team may determine if a 106.26 site is to operate under the provisions of this subdivision. 106.27 (b) If a site is to operate under this subdivision, the 106.28 school board shall enter into an agreement with an education 106.29 site decision making team which shall include: 106.30 (1) the specific governance, management, and program 106.31 responsibilities which will be under the control of the site and 106.32 those which will be retained by the district; 106.33 (2) the provisions of subdivision 3; 106.34 (3) the provisions of subdivision 4, if applicable; 106.35 (4) the membership of the education site decision making 106.36 team which shall include the principal or other person having 107.1 control and supervision of the education site; 107.2 (5) the amount of revenue that shall be allocated to the 107.3 site; 107.4 (6) the reporting from the site which is expected by the 107.5 board; 107.6 (7) the consequences which may be taken by the school board 107.7 if over a three-year period of time, the provisions of the 107.8 performance expectations agreement under subdivision 3 are not 107.9 satisfactorily met; and 107.10 (8) other provisions determined by the board. 107.11 (c) The agreement, at the option of the education site, may 107.12 include: 107.13 (1) a mechanism to implement flexible support systems for 107.14 improvement in student achievement of education outcomes and for 107.15 implementation of the graduation rule; 107.16 (2) a decision making structure that allows teachers to 107.17 identify instructional problems and control and apply the 107.18 resources needed to solve them; 107.19 (3) a mechanism to allow principals or other persons having 107.20 general control and supervision of the school, to make decisions 107.21 regarding how financial and personnel resources are best 107.22 allocated at the site and from whom goods or services are 107.23 purchased; 107.24 (4) a mechanism to implement parental involvement programs 107.25 under section 126.69 and to provide for effective parental 107.26 communication and feedback on this involvement at the site 107.27 level; 107.28 (5) a provision that allows the team to determine who is 107.29 hired into licensed and nonlicensed positions; 107.30 (6) a provision that allows direct contact with other 107.31 agency service providers; 107.32 (7) in-service training for site decision making team 107.33 members for financial management of school sites; and 107.34 (8) any other powers and duties determined appropriate by 107.35 an education site. 107.36 The school board of the district remains the legal employer 108.1 under clauses (5) and (6). 108.2 (d) Any powers or duties not delegated to the education 108.3 site management team in the site management agreement shall 108.4 remain with the school board. 108.5 (e) Approved agreements shall be filed with the 108.6 commissioner. 108.7 (f) Districts entering into site-based financing 108.8 agreements, whether at the district or site's request, under 108.9 this section shall inform the commissioner of this decision not 108.10 later than June 1 of the year preceding the effective school 108.11 year, except that for 1997-1998, notice must be submitted by 108.12 November 1, 1997. 108.13 Subd. 6. [REVENUE AND COST ALLOCATION.] (a) Revenue for a 108.14 fiscal year received or receivable by the district shall be 108.15 allocated to education sites under subdivision 2 with a 108.16 site-based financing agreement under subdivision 5 according to 108.17 this subdivision. Revenue shall remain allocated to each site 108.18 until used by the site. The district remains responsible for 108.19 legally entering into contracts and expending funds. 108.20 (b) Except as provided in paragraph (c), not less than 80 108.21 percent of the general education and referendum revenue, 108.22 excluding total operating capital revenue under section 124A.22, 108.23 subdivision 10, and not less than 25 percent of the total 108.24 operating capital revenue under section 124A.22, subdivision 10, 108.25 shall be allocated to participating education sites in the 108.26 district. The allocation shall be based on the number of pupil 108.27 units served at the site as a portion of total pupil units 108.28 served in the district. 108.29 (c) 100 percent of basic skills education revenue shall be 108.30 allocated to the education sites at which qualifying students 108.31 were enrolled as determined under sections 124.175, 124.273, and 108.32 124.3111. Revenue received under sections 124.3201, 124.321, 108.33 and 124.323 shall be allocated to the sites where the costs are 108.34 incurred. 108.35 (d) The district must charge each participating site the 108.36 actual cost of teachers at the site by category, and actual 109.1 costs of goods and services attributable to the general fund, 109.2 excluding the reserves defined in section 124A.02, subdivision 109.3 25, and a proportionate share of costs attributable to the total 109.4 operating capital account incurred at the site. 109.5 (e) For the purposes of this subdivision, "allocation" 109.6 means that the determination of the use of the revenue shall be 109.7 under the control of the site. 109.8 (f) A district's site-based financing aid is equal to 109.9 $17.40 for fiscal year 1998 and $17.90 for fiscal year 1999 and 109.10 later years times the actual pupil units enrolled at sites 109.11 operating under subdivision 5. If the school board determines 109.12 that a site shall be site-based financed, then at least 80 109.13 percent of this revenue shall be allocated to the school site 109.14 and the board may use the remaining 20 percent at its discretion 109.15 for learning improvement. If a site petitions the board to be 109.16 site-based financed, 100 percent of the revenue under this 109.17 subdivision shall be allocated to the site. 109.18 Sec. 14. [123.98] [STATEWIDE TESTING.] 109.19 Subdivision 1. [TEST.] Each school year, all school 109.20 districts shall give a test selected by the commissioner to all 109.21 pupils in grades three, five, and eight. The test shall be 109.22 given in the spring of each year consistent with the guidelines 109.23 established by the commissioner. The test shall measure 109.24 academic achievement in core subject areas and shall be 109.25 referenced to national achievement standards. This test shall 109.26 be given in addition to the graduation standards test developed 109.27 under section 121.11, subdivision 7c. This test is not a 109.28 graduation requirement for a student. 109.29 Subd. 2. [REPORT.] Each year, the results of the testing 109.30 shall be reported by site and shall be included in the report 109.31 required under section 123.972, subdivision 5. 109.32 Sec. 15. Minnesota Statutes 1996, section 124.175, is 109.33 amended to read: 109.34 124.175 [AFDC PUPIL COUNT.] 109.35 Each year byMarchJanuary 1, the department of human 109.36 services shall certify to the department of children, families, 110.1 and learning, for each school district, the number of pupils 110.2 from families receiving aid to families with dependent children 110.3 who were enrolled in a public school on October 1 of the 110.4 preceding year. The department of children, families, and 110.5 learning shall certify to each school district the number of 110.6 pupils from families receiving aid to dependent children at each 110.7 site in the district by March 1 of each year. 110.8 Sec. 16. Minnesota Statutes 1996, section 124.248, 110.9 subdivision 1, is amended to read: 110.10 Subdivision 1. [GENERAL EDUCATION AND REFERENDUM 110.11 REVENUE.] (a) General education revenue and referendum revenue 110.12 shall be paid to a charter school as though it were a school 110.13 district. 110.14 (b) The general education revenue for each pupil unit is 110.15 the state average general education revenue per pupil unit minus 110.16$170$176, calculated withoutcompensatorybasic skills revenue, 110.17 transportation sparsity revenue, and the transportation portion 110.18 of the transition revenue adjustment, pluscompensatorybasic 110.19 skills revenue as though the school were a school district. 110.20 (c) The referendum revenue for each pupil unit is the 110.21 referendum equalization revenue per pupil unit in the resident 110.22 district according to section 124A.03, subdivision 1f, if 110.23 approved or renewed after July 1, 1997. 110.24 Sec. 17. Minnesota Statutes 1996, section 124.248, is 110.25 amended by adding a subdivision to read: 110.26 Subd. 2a. [BUILDING LEASE AID.] When a charter school 110.27 finds it economically advantageous to rent or lease a building 110.28 or land for any instructional purposes and it determines that 110.29 the total operating capital revenue under section 124A.22, 110.30 subdivision 10, is insufficient for this purpose, it may apply 110.31 to the commissioner for building lease aid for this purpose. 110.32 Criteria for aid approval and revenue uses shall be as defined 110.33 for the building lease levy in section 124.91, subdivision 1. 110.34 The amount of building lease aid per pupil unit for a charter 110.35 school for any year shall not exceed the lesser of (a) 80 110.36 percent of the approved cost or (b) the product of the actual 111.1 pupil units for the current school year times the sum of the 111.2 state average debt redemption fund revenue plus capital revenue, 111.3 according to section 124.91, per actual pupil unit for the 111.4 current fiscal year. 111.5 Sec. 18. Minnesota Statutes 1996, section 124.248, 111.6 subdivision 4, is amended to read: 111.7 Subd. 4. [OTHER AID, GRANTS, REVENUE.] (a) A charter 111.8 school is eligible to receive other aids, grants, and revenue 111.9 according to chapters 120 to 129, as though it were a school 111.10 district except that, notwithstanding section 124.195, 111.11 subdivision 3, the payments shall be of an equal amount on each 111.12 of the 23 payment dates unless a charter school is in its first 111.13 year of operation in which case it shall receive on its first 111.14 payment date 15 percent of its cumulative amount guaranteed for 111.15 the year and 22 payments of an equal amount thereafter the sum 111.16 of which shall be 85 percent of the cumulative amount 111.17 guaranteed. However, it may not receive aid, a grant, or 111.18 revenue if a levy is required to obtain the money, except as 111.19 otherwise provided in this section. Federal aid received by the 111.20 state must be paid to the school, if it qualifies for the aid as 111.21 though it were a school district. 111.22 (b)Any revenue received from any source, other than111.23revenue that is specifically allowed for operational,111.24maintenance, capital facilities revenue under paragraph (c), and111.25capital expenditure equipment costs under this section, may be111.26used only for the planning and operational start-up costs of a111.27charter school. Any unexpended revenue from any source under111.28this paragraph must be returned to that revenue source or111.29conveyed to the sponsoring school district, at the discretion of111.30the revenue source.111.31(c)A charter school may receive money from any source for 111.32 capital facilities needs.Any unexpended capital facilities111.33revenue must be reserved and shall be expended only for future111.34capital facilities purposes.111.35 Sec. 19. [124.253] [CHARTER SCHOOL START-UP LOAN FUND.] 111.36 (a) A charter school start-up loan fund is created in the 112.1 general fund in the state treasury. $2,600,000 shall be 112.2 deposited in the fund on July 1, 1997, for initial 112.3 capitalization. On July 1, 1998, and each year thereafter, an 112.4 additional $1,500,000 shall be deposited in the fund. Any 112.5 interest earned on the principal of the fund shall be retained 112.6 by the fund and available for distribution. At the end of every 112.7 biennium, any balance in the fund in excess of $5,000,000 shall 112.8 cancel. 112.9 (b) A charter school operating under section 120.064 or a 112.10 program which has been granted a charter under section 120.064 112.11 may apply to the commissioner of children, families, and 112.12 learning for a loan from the charter school facilities fund. 112.13 (c) Loans shall be used for curriculum planning, budget 112.14 planning, development of information for students and parents, 112.15 purchasing equipment and other uses approved by the commissioner 112.16 of children, families, and learning. The funds shall not be 112.17 used for acquisition, renting, or leasing of facilities. 112.18 (d) All loan agreements between a charter school and the 112.19 department of children, families, and learning must include a 112.20 plan for repayment of the funds over a maximum period of five 112.21 years. Additional repayment terms shall be determined by the 112.22 department of children, families, and learning in consultation 112.23 with the department of finance. 112.24 (e) In the event that the repayment terms are violated, the 112.25 department of children, families, and learning may modify the 112.26 terms of repayment and require a plan for repayment under the 112.27 procedures specified in section 124.755, subdivision 8, or 112.28 recover the funds through the procedures specified in section 112.29 124.755, subdivision 5. In the event that the charter school 112.30 ceases to operate, any assets of the charter school may be 112.31 claimed and auctioned by the commissioner as payment against the 112.32 loan. 112.33 Sec. 20. [124.254] [CHARTER SCHOOL START-UP GRANTS.] 112.34 (a) A program that has been granted a charter under section 112.35 120.064, but has not yet begun operation, may apply to the 112.36 commissioner for a planning grant. 113.1 (b) These grants may be used for curriculum planning, 113.2 budget planning, development of information for students and 113.3 parents, staff recruitment, and other uses approved by the 113.4 department. The funds may not be used for expenses related to 113.5 the acquisition, improvement, renting, or leasing of capital 113.6 facilities. 113.7 (c) Grant criteria and amounts shall be determined by the 113.8 commissioner. 113.9 Sec. 21. Minnesota Statutes 1996, section 126.22, 113.10 subdivision 3, is amended to read: 113.11 Subd. 3. [ELIGIBLE PROGRAMS.] (a) A pupil who is eligible 113.12 according to subdivision 2 may enroll in area learning centers 113.13 under sections 124C.45 to 124C.48, or according to section 113.14 121.11, subdivision 12. 113.15 (b) A pupil who is eligible according to subdivision 2 and 113.16 who is between the ages of 16 and 21 may enroll in 113.17 post-secondary courses under section 123.3514. 113.18 (c) A pupil who is eligible under subdivision 2, may enroll 113.19 in any public elementary or secondary education program. 113.20 However, a person who is eligible according to subdivision 2, 113.21 clause (b), may enroll only if the school board has adopted a 113.22 resolution approving the enrollment. 113.23 (d) A pupil who is eligible under subdivision 2, may enroll 113.24 in anynonprofit,nonpublic, nonsectarian school that has 113.25 contracted with the serving school district to provide 113.26 educational services. 113.27 (e) A pupil who is between the ages of 16 and 21 may enroll 113.28 in any adult basic education programs approved under section 113.29 124.26 and operated under the community education program 113.30 contained in section 121.88. 113.31 Sec. 22. Minnesota Statutes 1996, section 126.22, 113.32 subdivision 3a, is amended to read: 113.33 Subd. 3a. [ADDITIONAL ELIGIBLE PROGRAM.] A pupil who is at 113.34 least 16 years of age, who is eligible under subdivision 2, 113.35 clause (a), and who has been enrolled only in a public school, 113.36 if the pupil has been enrolled in any school, during the year 114.1 immediately before transferring under this subdivision, may 114.2 transfer to anynonprofit,nonpublic school that has contracted 114.3 with the serving school district to provide nonsectarian 114.4 educational services. Such a school must enroll every eligible 114.5 pupil who seeks to transfer to the school under this program 114.6 subject to available space. 114.7 Sec. 23. Minnesota Statutes 1996, section 179A.16, is 114.8 amended by adding a subdivision to read: 114.9 Subd. 1a. [TEACHERS.] (a) For contracts between exclusive 114.10 representatives of teachers and public employers of teachers 114.11 other than the state, procedures for negotiation of agreements, 114.12 mediation and interest arbitration must be as otherwise provided 114.13 in this chapter until August 15 of the odd-numbered year. If 114.14 either the public employer or the exclusive representative of 114.15 the teachers requests interest arbitration after August 15 of 114.16 the odd-numbered year, the commissioner shall request necessary 114.17 information from the parties, shall determine the matters not 114.18 agreed upon based on the efforts to mediate the dispute and the 114.19 positions submitted by the parties during negotiations or 114.20 mediation, and shall prepare a list of the items to be decided 114.21 by an arbitration panel. The commissioner shall submit the list 114.22 of items to be decided by an arbitration panel to the parties. 114.23 Within 15 days of its receipt of the list of items to be decided 114.24 by an arbitration panel, the public employer shall notify the 114.25 commissioner whether it agrees to submission of those items to 114.26 interest arbitration. 114.27 (b) If the public employer agrees to submission of those 114.28 items to interest arbitration, those items must be submitted to 114.29 final-offer total-package interest arbitration and the result is 114.30 final and binding on the parties. The parties may mutually 114.31 stipulate items to be excluded from arbitration. 114.32 (c) If the public employer does not respond to the 114.33 commissioner within 15 days of its receipt of the list of items 114.34 to be decided by an arbitration panel or if it rejects 114.35 submission of those items to interest arbitration, the teachers 114.36 may strike if they have complied with the following: 115.1 (1) the exclusive representative of the teachers has 115.2 submitted the last offer of the public employer to a secret vote 115.3 by the membership of the teacher bargaining unit and it has been 115.4 rejected; and 115.5 (2) after the rejection of the public employer's last 115.6 offer, the teachers have complied with the notice procedures of 115.7 section 179A.18, subdivision 3. 115.8 (d) If neither the public employer nor the exclusive 115.9 representative of the teachers requests interest arbitration, 115.10 this chapter applies. 115.11 Sec. 24. Minnesota Statutes 1996, section 179A.17, 115.12 subdivision 1, is amended to read: 115.13 Subdivision 1. [FOR TEACHERS.] If a new or different 115.14 exclusive representative of teachers employed by a local school 115.15 district is certified by the commissioner at any time other than 115.16 the period between 120 days before the termination date of a 115.17 contract and the termination date of the contract, or if on July 115.18 1 of any odd-numbered year a representation proceeding involving 115.19 the employer and the employer's teachers is before the 115.20 commissioner, section 179A.18, subdivision 2, clause (1), shall 115.21 apply. In those cases, however, the employer and the exclusive 115.22 representative of the teachers shall execute a written contract 115.23 or memorandum of contract no later than 60 days after a 115.24 certification by the commissioner of a new or different 115.25 exclusive representative or the resolution by the commissioner 115.26 of a representation proceeding. Either party may petition the 115.27 commissioner for assistance in reaching an agreement. If the 115.28 employer and the exclusive representative of the teachers fail 115.29 to execute a contract by 60 days after the certification of a 115.30 new or different exclusive representative or the resolution by 115.31 the commissioner of a representation proceeding, they shall be 115.32 conclusively presumed to be at an impasse after having 115.33 participated in mediation as specified in section 179A.18, 115.34 subdivision 2, clause (1)(b). After the 60 days, section 115.35 179A.16, subdivision 1a, applies as though agreement had not 115.36 been reached by August 15 of the odd-numbered year. 116.1 Sec. 25. [179A.32] [NOTICE OF LAYOFFS.] 116.2 Notwithstanding any law to the contrary or governing 116.3 collective bargaining agreements, school districts and school 116.4 boards shall not be required to notify teachers or their 116.5 exclusive representatives of layoffs until 30 days prior to the 116.6 beginning of the school year. 116.7 Sec. 26. [LABORATORY SCHOOL GRANTS.] 116.8 Subdivision 1. [ESTABLISHMENT.] The commissioner of 116.9 children, families, and learning shall make grants to 116.10 post-secondary institutions to establish at least three 116.11 laboratory schools that develop innovative teaching techniques 116.12 to enhance students' learning experiences. At least one 116.13 laboratory school must be located in the seven-county 116.14 metropolitan area and at least one laboratory school must be 116.15 located in greater Minnesota. 116.16 Subd. 2. [GRANT APPLICATION.] An application for a grant 116.17 may be submitted by a public or private post-secondary 116.18 institution located in the state. Each grant application must 116.19 include: 116.20 (1) the location of the laboratory school determined in 116.21 collaboration with a school district or proposed as a charter 116.22 school; and 116.23 (2) a five-year fiscal plan demonstrating that the school 116.24 shall operate with no additional state revenue except for 116.25 revenue received under Minnesota Statutes, chapters 124 and 116.26 124A, and the grant money awarded under this section. 116.27 The commissioner of children, families, and learning shall 116.28 establish guidelines and an application process for the grants. 116.29 Subd. 3. [GRANT MONEY.] The grant money may be used for: 116.30 (1) transportation of students; 116.31 (2) technology; 116.32 (3) equipment; 116.33 (4) teacher mentorships; 116.34 (5) building remodeling, renovation, and repair; 116.35 (6) the dissemination of innovative and effective teaching 116.36 techniques; 117.1 (7) education research for the development of teaching 117.2 methods, assessments, and curriculum design; 117.3 (8) the development of creative opportunities for parental 117.4 involvement; and 117.5 (9) other inventive teaching and learning practices 117.6 designed to implement the graduation standards. 117.7 Sec. 27. [APPROPRIATION.] 117.8 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 117.9 LEARNING.] The sum indicated in this section is appropriated 117.10 from the general fund to the department of children, families, 117.11 and learning for the fiscal year designated. 117.12 Subd. 2. [STATEWIDE TESTING.] For the administration of 117.13 statewide testing under section 14: 117.14 $2,500,000 ..... 1998 117.15 $2,500,000 ..... 1999 117.16 Of these amounts, $50,000 each year may be used for 117.17 statewide information systems under section 10. 117.18 Any balance in the first year does not cancel but is 117.19 available in the second year. 117.20 Subd. 3. [SITE MERIT PAY AID.] For site merit pay aid 117.21 according to section 13: 117.22 $7,500,000 ..... 1998 117.23 $8,333,000 ..... 1999 117.24 The 1999 appropriation includes $833,000 for fiscal year 117.25 1998 and $7,500,000 for fiscal year 1999. 117.26 Subd. 4. [SITE-BASED FINANCING AID.] For site-based 117.27 financing aid according to section 13: 117.28 $15,000,000 ..... 1998 117.29 $16,667,000 ..... 1999 117.30 The 1999 appropriation includes $1,667,000 for fiscal year 117.31 1998 and $15,000,000 for fiscal year 1999. 117.32 Subd. 5. [CHARTER SCHOOL BUILDING LEASE AID.] For building 117.33 lease aid according to section 17: 117.34 $1,078,000 ..... 1998 117.35 $1,577,000 ..... 1999 117.36 The 1999 appropriation includes $120,000 for 1998 and 118.1 $1,457,000 for 1999. 118.2 Subd. 6. [CHARTER SCHOOL START-UP GRANTS.] For charter 118.3 school start-up grants according to section 20: 118.4 $1,322,000 ..... 1998 118.5 $1,923,000 ..... 1999 118.6 Any balance in the first year does not cancel but is 118.7 available in the second year. This appropriation may also be 118.8 used for grants to convert existing schools into charter schools. 118.9 Subd. 7. [LABORATORY SCHOOL GRANTS.] For laboratory school 118.10 grants according to section 26: 118.11 $10,000,000 ..... 1998 118.12 Any balance in the first year does not cancel but is 118.13 available in the second year. 118.14 Subd. 8. [SCHOOL ENRICHMENT PARTNERSHIP PROGRAM.] For 118.15 school enrichment partnership program aid according to Minnesota 118.16 Statutes, section 124.255: 118.17 $500,000 ..... 1998 118.18 Any balance remaining in the first year does not cancel but 118.19 is available in the second year. 118.20 Subd. 9. [ADVANCED PLACEMENT AND INTERNATIONAL 118.21 BACCALAUREATE PROGRAMS.] For the state advanced placement and 118.22 international baccalaureate programs, including training 118.23 programs, support programs, and examination fee subsidies: 118.24 $875,000 ..... 1998 118.25 $875,000 ..... 1999 118.26 Of this amount $200,000 each year is for training and 118.27 support programs under Minnesota Statutes, section 126.239, and 118.28 the balance is for examination fee subsidies. Notwithstanding 118.29 Minnesota Statutes, section 126.239, subdivision 3, in each year 118.30 to the extent of available appropriations, the commissioner 118.31 shall pay the fee for the first advanced placement or 118.32 international baccalaureate examination each student takes. The 118.33 commissioner shall pay 50 percent of the fee for each additional 118.34 examination a student takes or more than 50 percent if the 118.35 student meets the low-income guidelines established by the 118.36 commissioner. If this amount is not adequate, the commissioner 119.1 may pay less than 50 percent for the additional examinations. 119.2 Any balance in the first year does not cancel but is 119.3 available in the second year. 119.4 Subd. 10. [SCHOOL RESTRUCTURING GRANT.] For school 119.5 restructuring: 119.6 $300,000 ..... 1998 119.7 $300,000 ..... 1999 119.8 This appropriation is for a grant to a nonstate 119.9 organization to develop systemic site decision-making models and 119.10 implement systemic site decision-making in school districts. 119.11 Any balance in the first year does not cancel but is 119.12 available in the second year. 119.13 Subd. 11. [TEACHER EDUCATION IMPROVEMENT.] For board of 119.14 teaching responsibilities relating to teacher licensure 119.15 restructuring and implementation of the teaching residency 119.16 program: 119.17 $450,000 ..... 1998 119.18 $450,000 ..... 1999 119.19 Any balance in the first year does not cancel but is 119.20 available in the second year. 119.21 The board of teaching shall use the funds for further 119.22 development of the results-oriented teacher licensure system, 119.23 for pilot site grants and other methods of implementing the 119.24 teacher residency program, and for programs relating to teacher 119.25 mentoring. 119.26 Subd. 12. [COMMUNITY-BASED CHARTER SCHOOL GRANT.] For a 119.27 grant for community-based charter schools located in independent 119.28 school district No. 625, St. Paul: 119.29 $1,000,000 ..... 1998 119.30 $1,000,000 ..... 1999 119.31 The commissioner may establish criteria and any reporting 119.32 or match requirements for the grant under this section. 119.33 Subd. 13. [SCIENCE-MATHEMATICS GRANT.] For continuation of 119.34 systemic change in science and mathematics education programs: 119.35 $1,322,000 ..... 1998 119.36 $1,322,000 ..... 1999 120.1 $30,000 of the appropriation in 1998 and $30,000 in 1999 is 120.2 for the south central Minnesota talented youth program. 120.3 Any balance in the first year does not cancel but is 120.4 available in the second year. 120.5 Sec. 28. [REPEALER.] 120.6 (a) Minnesota Statutes 1996, sections 121.611, subdivision 120.7 3; and 123.951, are repealed. 120.8 (b) Minnesota Statutes 1996, sections 124.276, and 124A.22, 120.9 subdivision 2a; and Laws 1994, chapter 647, article 7, section 120.10 18, are repealed. 120.11 Sec. 29. [EFFECTIVE DATE.] 120.12 Section 5 is effective for the 1997-1998 school year and 120.13 thereafter. Section 16 is effective for revenue for fiscal year 120.14 1999. Sections 23, 24, and 28, paragraph (b), are effective 120.15 July 1, 1997. 120.16 ARTICLE 8 120.17 NUTRITION AND OTHER EDUCATION PROGRAMS 120.18 Section 1. [APPROPRIATIONS.] 120.19 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 120.20 LEARNING.] The sums indicated in this section are appropriated 120.21 from the general fund to the department of children, families, 120.22 and learning for the fiscal years designated. 120.23 Subd. 2. [ABATEMENT AID.] For abatement aid according to 120.24 Minnesota Statutes, section 124.214: 120.25 $6,844,000 ..... 1998 120.26 $6,844,000 ..... 1999 120.27 The 1998 appropriation includes $684,000 for 1997 and 120.28 $6,160,000 for 1998. 120.29 The 1999 appropriation includes $684,000 for 1998 and 120.30 $6,160,000 for 1999. 120.31 Subd. 3. [NONPUBLIC PUPIL AID.] For nonpublic pupil 120.32 education aid according to Minnesota Statutes, sections 123.79 120.33 and 123.931 to 123.947: 120.34 $9,415,000 ..... 1998 120.35 $9,688,000 ..... 1999 120.36 The 1998 appropriation includes $885,000 for 1997 and 121.1 $8,530,000 for 1998. 121.2 The 1999 appropriation includes $947,000 for 1998 and 121.3 $8,741,000 for 1999. 121.4 Subd. 4. [SCHOOL LUNCH AND FOOD STORAGE AID.] (a) For 121.5 school lunch aid according to Minnesota Statutes, section 121.6 124.646, and Code of Federal Regulations, title 7, section 121.7 210.17, and for food storage and transportation costs for United 121.8 States Department of Agriculture donated commodities; and for a 121.9 temporary transfer to the commodity processing revolving fund to 121.10 provide cash flow to permit schools and other recipients of 121.11 donated commodities to take advantage of volume processing rates 121.12 and for school milk aid according to Minnesota Statutes, section 121.13 124.648: 121.14 $7,254,000 ..... 1998 121.15 $7,254,000 ..... 1999 121.16 (b) Any unexpended balance remaining from the 121.17 appropriations in this subdivision shall be prorated among 121.18 participating schools based on the number of free, reduced, and 121.19 fully paid federally reimbursable student lunches served during 121.20 that school year. 121.21 (c) If the appropriation amount attributable to either year 121.22 is insufficient, the rate of payment for each fully paid student 121.23 lunch shall be reduced and the aid for that year shall be 121.24 prorated among participating schools so as not to exceed the 121.25 total authorized appropriation for that year. 121.26 (d) Any temporary transfer processed in accordance with 121.27 this subdivision to the commodity processing fund will be 121.28 returned by June 30 in each year so that school lunch aid and 121.29 food storage costs can be fully paid as scheduled. 121.30 (e) Not more than $800,000 of the amount appropriated each 121.31 year may be used for school milk aid. 121.32 Subd. 5. [SUMMER FOOD SERVICE.] For summer food service: 121.33 $15,000 ..... 1998 121.34 $15,000 ..... 1999 121.35 Subd. 6. [SCHOOL BREAKFAST.] To operate the school 121.36 breakfast program according to Minnesota Statutes, sections 122.1 124.6469 and 124.6472: 122.2 $456,000 ..... 1998 122.3 $456,000 ..... 1999 122.4 If the appropriation amount attributable to either year is 122.5 insufficient, the rate of payment for each fully paid student 122.6 breakfast shall be reduced and the aid for that year shall be 122.7 prorated among participating schools so as not to exceed the 122.8 total authorized appropriation for that year. Any unexpected 122.9 balance remaining shall be used to subsidize the payments made 122.10 for school lunch aid per Minnesota Statutes, section 124.646. 122.11 Up to one percent of the program funding can be used by the 122.12 department of children, families, and learning for technical and 122.13 administrative assistance. 122.14 Subd. 7. [PSEO REPLACEMENT AID.] For PSEO replacement aid: 122.15 $12,000 ..... 1998 122.16 The 1998 appropriation includes $12,000 for 1997 and $0 for 122.17 1998. 122.18 Sec. 2. [REPEALER.] 122.19 (a) Minnesota Statutes 1996, section 124.177, is repealed. 122.20 (b) Minnesota Statutes 1996, section 124A.292, is repealed. 122.21 Sec. 3. [EFFECTIVE DATE.] 122.22 Section 2, paragraph (b), is effective for revenue for 122.23 fiscal year 1999. 122.24 ARTICLE 9 122.25 LIBRARIES 122.26 Section 1. [APPROPRIATIONS.] 122.27 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 122.28 LEARNING.] The sums indicated in this section are appropriated 122.29 from the general fund to the department of children, families, 122.30 and learning for the fiscal years designated. 122.31 Subd. 2. [BASIC SUPPORT GRANTS.] For basic support grants 122.32 according to Minnesota Statutes, sections 134.32 to 134.35: 122.33 $7,819,000 ..... 1998 122.34 $7,819,000 ..... 1999 122.35 The 1998 appropriation includes $781,000 for 1997 and 122.36 $7,038,000 for 1998. 123.1 The 1999 appropriation includes $781,000 for 1998 and 123.2 $7,038,000 for 1999. 123.3 Subd. 3. [LIBRARIANS OF COLOR.] For the librarians of 123.4 color program according to Minnesota Statutes, section 134.155: 123.5 $55,000 ..... 1998 123.6 $55,000 ..... 1999 123.7 Any balance in the first year does not cancel but is 123.8 available in the second year. 123.9 Subd. 4. [CHILDREN'S LIBRARY SERVICES GRANTS.] For grants 123.10 for collaborative programs to strengthen library services to 123.11 children, young people, and their families: 123.12 $50,000 ..... 1998 123.13 $50,000 ..... 1999 123.14 Any balance in the first year does not cancel but is 123.15 available in the second year. 123.16 Subd. 5. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 123.17 grants according to Minnesota Statutes, sections 134.353 and 123.18 134.354, to multicounty, multitype library systems: 123.19 $527,000 ..... 1998 123.20 $527,000 ..... 1999 123.21 The 1998 appropriation includes $52,000 for 1997 and 123.22 $475,000 for 1998. 123.23 The 1999 appropriation includes $52,000 for 1998 and 123.24 $475,000 for 1999. 123.25 ARTICLE 10 123.26 TECHNOLOGY 123.27 Section 1. [121.97] [LEARNING ACADEMY.] 123.28 Subdivision 1. [ESTABLISHMENT.] The commissioner shall 123.29 develop standards and requirements and certify courses for a 123.30 Minnesota learning academy to provide training opportunities for 123.31 educators, administrators, and librarians in the use of 123.32 technology and its integration into learning activities. Only 123.33 certified classes may be used to fulfill the requirements of the 123.34 learning academy. 123.35 Subd. 2. [PARTICIPANTS.] Teachers, principals, school 123.36 district administrators, community education directors, and 124.1 librarians may participate in the learning academy. A public 124.2 school teacher who successfully completes the classroom 124.3 integration requirements of the learning academy is eligible to 124.4 receive a computer, provided by the school district, for use 124.5 during school and nonschool hours. 124.6 Subd. 3. [DEVELOPMENT OF THE LEARNING ACADEMY.] To develop 124.7 the learning academy, the commissioner shall consult with 124.8 representatives of public schools, higher education, teacher 124.9 organizations, students, private business, state agencies, 124.10 libraries, and political subdivisions to do the following: 124.11 (1) set measures for teacher training opportunities on 124.12 technical skills and technology integration skills; 124.13 (2) identify and establish outcomes for a series of 124.14 training courses that provide for technical skills and 124.15 technology classroom integration skills; 124.16 (3) recommend tuition costs for participation in training 124.17 courses; 124.18 (4) identify existing public or private institutions to 124.19 develop and provide training courses; 124.20 (5) establish procedures for school districts to purchase a 124.21 computer for the use of each teacher during school and nonschool 124.22 hours who completes the classroom integration skills courses; 124.23 (6) evaluate prerequisites for the classroom integration 124.24 skills course; 124.25 (7) certify classes and courses for inclusion in the 124.26 learning academy; and 124.27 (8) coordinate and make certified classes and courses 124.28 available to eligible participants. 124.29 Sec. 2. Minnesota Statutes 1996, section 124.91, 124.30 subdivision 5, is amended to read: 124.31 Subd. 5. [INTERACTIVE TELEVISION.] (a) A school district 124.32 with its central administrative office located within economic 124.33 development region one, two, three, four, five, six, seven, 124.34 eight, nine, and ten may apply to the commissioner of children, 124.35 families, and learning for ITV revenue up to the greater of .5 124.36 percent of the adjusted net tax capacity of the district or 125.1 $25,000 for the construction, maintenance, and lease costs of an 125.2 interactive television system for instructional purposes. The 125.3 approval by the commissioner of children, families, and learning 125.4 and the application procedures set forth in subdivision 1 shall 125.5 apply to the revenue in this subdivision. In granting the 125.6 approval, the commissioner must consider whether the district is 125.7 maximizing efficiency through peak use and off-peak use pricing 125.8 structures. 125.9 (b) To obtain ITV revenue, a district may levy an amount 125.10 not to exceed the district's ITV revenue times the lesser of one 125.11 or the ratio of: 125.12 (1) the quotient derived by dividing the adjusted net tax 125.13 capacity of the district for the year before the year the levy 125.14 is certified by the actual pupil units in the district for the 125.15 year to which the levy is attributable; to 125.16 (2)100 percent of the equalizing factor as defined in125.17section 124A.02, subdivision 8, for the year to which the levy125.18is attributable$10,447. 125.19 (c) A district's ITV aid is the difference between its ITV 125.20 revenue and the ITV levy. 125.21 (d) The revenue in the first year after reorganization for 125.22 a district that has reorganized under section 122.22, 122.23, or 125.23 122.241 to 122.247 shall be the greater of: 125.24 (1) the revenue computed for the reorganized district under 125.25 paragraph (a), or 125.26 (2)(i) for two districts that reorganized, 75 percent of 125.27 the revenue computed as if the districts involved in the 125.28 reorganization were separate, or 125.29 (ii) for three or more districts that reorganized, 50 125.30 percent of the revenue computed as if the districts involved in 125.31 the reorganization were separate. 125.32 (e) The revenue in paragraph (d) is increased by the 125.33 difference between the initial revenue and ITV lease costs for 125.34 leases that had been entered into by the preexisting districts 125.35 on the effective date of the consolidation or combination and 125.36 with a term not exceeding ten years. This increased revenue is 126.1 only available for the remaining term of the lease. However, in 126.2 no case shall the revenue exceed the amount available had the 126.3 preexisting districts received revenue separately. 126.4 Sec. 3. Laws 1995, First Special Session chapter 3, 126.5 article 12, section 7, subdivision 1, is amended to read: 126.6 Subdivision 1. [STATE COUNCIL MEMBERSHIP.] The membership 126.7 of the Minnesota education telecommunications council 126.8 established in Laws 1993, First Special Session chapter 2, is 126.9 expanded to include representatives of elementary and secondary 126.10 education. The membership shall consist of three 126.11 representatives from the University of Minnesota; three 126.12 representatives of the board of trustees for Minnesota state 126.13 colleges and universities; one representative of the higher 126.14 education services offices; one representative appointed by the 126.15 private college council; eight representatives selected by the 126.16 commissioner of education, at least one of which must come from 126.17 each of the six higher education telecommunication regions; a 126.18 representative from the information policy office; one member 126.19 each from the senate and the house of representatives selected 126.20 by the subcommittee on committees of the committee on rules and 126.21 administration of the senate and the speaker of the house; and 126.22 three representatives of libraries, one representing regional 126.23 public libraries, one representing multitype libraries, and one 126.24 representing community libraries, selected by the governor. The 126.25 council shall: 126.26 (1) develop a statewide vision and plans for the use of 126.27 distance learning technologies and provide leadership in 126.28 implementing the use of such technologies; 126.29 (2) recommend to the commissioner and the legislature by 126.30 December 15, 1996, a plan for long-term governance and a 126.31 proposed structure for statewide and regional 126.32 telecommunications; 126.33 (3) recommend educational policy relating to 126.34 telecommunications; 126.35 (4) determine priorities for use; 126.36 (5) oversee coordination of networks for post-secondary 127.1 campuses, K-12 education, and regional and community libraries; 127.2 (6) review application for telecommunications access grants 127.3 under Minnesota Statutes, section 124C.74 and recommend to the 127.4 department grants for funding;and127.5 (7) determine priorities for grant funding proposals; 127.6 (8) establish technical standards for all Minnesota schools 127.7 and libraries to ensure interoperability of hardware, software, 127.8 and telecommunications; and 127.9 (9) develop technical standards for the operation and 127.10 maintenance of all Minnesota interactive television cooperatives. 127.11 The council shall consult with representatives of the 127.12 telecommunication industry in implementing this section. 127.13 Sec. 4. Laws 1996, chapter 412, article 12, section 8, is 127.14 amended to read: 127.15 The commissioner of the department of children, families, 127.16 and learning shall work with interested and involved 127.17 organizations including, but not limited to, representatives of 127.18 school districts, service cooperatives, TIES, education 127.19 districts, higher education institutions, public libraries, and 127.20 other government agencies to develop a technology planning guide 127.21 for school districts. The department must distribute the guides 127.22 to school districts and hold regional meetings to discuss the 127.23 planning process. In making technology related funding 127.24 decisions, the commissioner may consider a school district's 127.25 technology planin making technology-related funding127.26decisionsand the degree to which it meets the technical 127.27 standards established by the Minnesota education 127.28 telecommunication council under Laws 1995, First Special Session 127.29 chapter 3, article 12, section 7. 127.30 Sec. 5. [LEARNING RESOURCE NETWORK.] 127.31 The commissioner shall establish an electronic learning 127.32 resource network to support the statewide implementation of the 127.33 graduation standards. The learning resource network must be 127.34 made available to public schools over the learning network 127.35 established through telecommunication access grants under 127.36 Minnesota Statutes, section 124C.74. Products and services 128.1 available on the learning resource network must be integrated 128.2 and provide methods to align curriculum with the graduation 128.3 standards, and to assist teachers in curriculum delivery and 128.4 integration, student assessment, and classroom recordkeeping. 128.5 The commissioner shall also identify ways to make the learning 128.6 resource network available to students and parents to enhance 128.7 the learning experience. The commissioner shall develop or 128.8 contract for the development of all or part of the learning 128.9 resource network to expand the electronic curriculum library 128.10 under Laws 1996, chapter 412, article 12, section 15, 128.11 subdivision 4, paragraph (a). The commissioner shall consult 128.12 with representatives from the public and private sector in the 128.13 development, use, and operation of the learning resource network. 128.14 Sec. 6. [SITE-BASED TECHNOLOGY LEARNING GRANTS.] 128.15 Subdivision 1. [ESTABLISHMENT; PURPOSE.] A matching grant 128.16 program is established for school sites to fund technology 128.17 projects in support of learning and to increase and enhance 128.18 closer ties with the community. The grants are available to a 128.19 school site or to a partnership of school sites. Recipients 128.20 shall use grant proceeds for technology projects that are 128.21 consistent with the district's or site's technology plan. All 128.22 projects must meet the technology standards established under 128.23 section 3. Projects that are eligible for grant funds include, 128.24 but are not limited to, hardware and software purchases and 128.25 installation, establishment or expansion of local or wide area 128.26 networks, and training and staff development in the use of 128.27 technology and software. 128.28 Subd. 2. [APPLICATION; ELIGIBILITY.] The commissioner 128.29 shall establish a process and application forms for school sites 128.30 to apply for grant funds. Eligible applicants must, at a 128.31 minimum, describe how the proposed project is consistent with 128.32 the site's or district's technology plan, identify the specific 128.33 site needs that the project will address, define the project's 128.34 expected outcomes, and provide the source, type, and amounts of 128.35 all matching funds. To be eligible for a site-based technology 128.36 learning grant, a school site must: 129.1 (1) be a public school site or partnership of school sites; 129.2 (2) have each dollar of grant money matched by at least one 129.3 dollar of school site money, including in-kind contributions; 129.4 (3) have each dollar of grant money matched by at least one 129.5 dollar of nonstate and nonschool site money, including in-kind 129.6 contributions; 129.7 (4) agree to disseminate and share information about its 129.8 project; 129.9 (5) provide a benefit to the greater community; and 129.10 (6) maintain any ongoing costs of support for the 129.11 technology project after the initial funding under the grant 129.12 program. 129.13 Subd. 3. [GRANT AWARD.] The commissioner shall establish 129.14 criteria for awarding grants under this section. All grant 129.15 awards must be made directly to a school site or to the 129.16 designated fiscal agent for a school site or a partnership of 129.17 school sites. The commissioner shall consult with 129.18 representatives of the public and private sectors in 129.19 establishing criteria and awarding site-based technology 129.20 learning grants. 129.21 Sec. 7. [LIBRARY TECHNOLOGY SITE GRANT PROGRAM.] 129.22 Subdivision 1. [ESTABLISHMENT; PURPOSE.] A matching grant 129.23 program is established for library sites to fund projects to 129.24 expand and integrate technology into library operations, 129.25 increase public access to technology, and enhance closer ties 129.26 with the community. The grants are available to public or 129.27 school library sites or to a partnership of library sites. 129.28 Recipients shall use grant proceeds for technology projects that 129.29 are consistent with the technology plans and meet the technology 129.30 standards established under section 3. Projects that are 129.31 eligible for grant funds include, but are not limited to, 129.32 hardware and software purchases and installation, establishment, 129.33 or expansion of local or wide area networks, and training and 129.34 staff development in the use of technology and software. 129.35 Subd. 2. [APPLICATION; ELIGIBILITY.] The commissioner 129.36 shall establish a process and application forms for library 130.1 sites to apply for grant funds. Eligible applicants must, at a 130.2 minimum, describe how the proposed project is consistent with 130.3 the technology plans, identify the specific site needs that the 130.4 project will address, define the project's expected outcomes, 130.5 and provide the source, type, and amounts of all matching funds. 130.6 To be eligible for a site-based technology learning grant, a 130.7 library site must: 130.8 (1) be a public library as defined under Minnesota 130.9 Statutes, section 134.001, subdivision 3, a school library, or a 130.10 partnership of public and school libraries; 130.11 (2) have each dollar of grant money matched by at least one 130.12 dollar of library site money, including in-kind contributions; 130.13 (3) have each dollar of grant money matched by at least one 130.14 dollar of nonstate and nonlibrary site money, including in-kind 130.15 contributions; 130.16 (4) agree to disseminate and share information about its 130.17 project; 130.18 (5) provide a benefit to the greater community; and 130.19 (6) maintain any ongoing costs of support for the 130.20 technology project after the initial funding under the grant 130.21 program. 130.22 Subd. 3. [GRANT AWARD.] The commissioner shall establish 130.23 criteria for awarding grants under this section. All grant 130.24 awards must be made directly to the library site, school 130.25 district, or to the designated fiscal agent for the site or a 130.26 partnership of sites. The commissioner shall consult with 130.27 representatives of the public and private sectors in 130.28 establishing criteria and awarding site-based technology 130.29 learning grants. 130.30 Sec. 8. [APPROPRIATIONS.] 130.31 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 130.32 LEARNING.] The sums indicated in this section are appropriated 130.33 from the general fund to the department of children, families, 130.34 and learning for the fiscal years designated. 130.35 Subd. 2. [TELECOMMUNICATION ACCESS GRANTS.] For one-time 130.36 grants to school districts and regional public library systems 131.1 to establish telecommunication connections according to 131.2 Minnesota Statutes, section 124C.74: 131.3 $7,750,000 ..... 1998 131.4 Any balance in the first year does not cancel but is 131.5 available in the second year. 131.6 This amount is in addition to the amount already included 131.7 in the 1998-1999 base for the telecommunication access grants. 131.8 This amount shall not be included as part of the base for fiscal 131.9 year 2000-2001. Up to $3,000,000 in 1998 is for completion of 131.10 district connections. 131.11 Before a district can receive a grant under this 131.12 subdivision in fiscal year 1999, the district must submit, to 131.13 the commissioner, evidence that it has pursued all possible 131.14 funding options, including ITV revenue under Minnesota Statutes, 131.15 section 124.91, subdivision 5. Notwithstanding Minnesota 131.16 Statutes, section 124.91, subdivision 5, ITV revenue may also be 131.17 used for the purposes of the telecommunication access grants 131.18 under Minnesota Statutes, section 124C.74. This amount shall 131.19 not be included as part of the base for fiscal year 2000-2001. 131.20 Expenditure of this appropriation is subject to terms and 131.21 conditions established by the Minnesota office of technology. 131.22 Subd. 3. [INTERACTIVE TELEVISION (ITV) AID.] For 131.23 interactive television (ITV) aid under Minnesota Statutes, 131.24 section 124.91, subdivision 5: 131.25 $ 4,030,000 ..... 1998 131.26 $ 4,051,000 ..... 1999 131.27 The 1998 appropriation includes $384,000 for 1997 and 131.28 $3,646,000 for 1998. 131.29 The 1999 appropriation includes $405,000 for 1998 and 131.30 $3,646,000 for 1999. 131.31 Subd. 4. [LEARNING ACADEMY.] For learning academies under 131.32 section 1: 131.33 $ 2,000,000 ..... 1998 131.34 This appropriation is available until expended. 131.35 The commissioner may work with private business partners to 131.36 facilitate the purchase of computers for teachers who complete 132.1 the classroom technology integration skills courses. The 132.2 commissioner shall use these funds to offset financing charges 132.3 on purchases by school districts of computers for teachers who 132.4 complete the course. 132.5 Expenditure of this appropriation is subject to terms and 132.6 conditions established by the Minnesota office of technology. 132.7 Subd. 5. [LEARNING RESOURCE NETWORK.] For the learning 132.8 resource network in section 4: 132.9 $ 7,000,000 ..... 1998 132.10 This appropriation is available until June 30, 1999. These 132.11 funds are a one-time appropriation. 132.12 The commissioner shall be responsible for the initial cost 132.13 of establishing the learning resource network. A school site 132.14 choosing to be part of the network shall be responsible for the 132.15 ongoing costs. 132.16 Expenditure of this appropriation is subject to terms and 132.17 conditions established by the Minnesota office of technology. 132.18 Subd. 6. [SITE-BASED TECHNOLOGY LEARNING GRANTS.] For 132.19 one-time site-based learning grants under section 5: 132.20 $50,000,000 ..... 1998 132.21 This appropriation is available until June 30, 1999. 132.22 Expenditure of this appropriation is subject to terms and 132.23 conditions established by the Minnesota office of technology. 132.24 Subd. 7. [LIBRARY TECHNOLOGY SITE GRANT PROGRAM.] For 132.25 one-time library site grants under section 6: 132.26 $ 4,650,000 ..... 1998 132.27 This appropriation is available until June 30, 1999. 132.28 Expenditure of this appropriation is subject to terms and 132.29 conditions established by the Minnesota office of technology. 132.30 Subd. 8. [EDUCATION TECHNOLOGY CLEARINGHOUSE AND UPGRADE 132.31 SYSTEM.] For the education technology clearinghouse and upgrade 132.32 system under Minnesota Statutes, section 121.95: 132.33 $ 250,000 ..... 1998 132.34 $ 250,000 ..... 1999 132.35 Sec. 9. [REPEALER.] 132.36 Minnesota Statutes 1996, section 134.46, is repealed. Laws 133.1 1995, First Special Session chapter 3, article 12, section 8, is 133.2 repealed. 133.3 Sec. 10. [EFFECTIVE DATE.] 133.4 Section 2 is effective for revenue for fiscal year 1999. 133.5 ARTICLE 11 133.6 TAX DEDUCTION AND CREDIT 133.7 Section 1. Minnesota Statutes 1996, section 290.01, 133.8 subdivision 19b, is amended to read: 133.9 Subd. 19b. [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For 133.10 individuals, estates, and trusts, there shall be subtracted from 133.11 federal taxable income: 133.12 (1) interest income on obligations of any authority, 133.13 commission, or instrumentality of the United States to the 133.14 extent includable in taxable income for federal income tax 133.15 purposes but exempt from state income tax under the laws of the 133.16 United States; 133.17 (2) if included in federal taxable income, the amount of 133.18 any overpayment of income tax to Minnesota or to any other 133.19 state, for any previous taxable year, whether the amount is 133.20 received as a refund or as a credit to another taxable year's 133.21 income tax liability; 133.22 (3) the amount paid to others, less the credit allowed 133.23 under section 290.0672, not to exceed$650$1,950 for each 133.24 dependent in grades kindergarten to 6 and$1,000$3,000 for each 133.25 dependent in grades 7 to 12, for tuition, textbooks, and 133.26 transportation of each dependent in attending an elementary or 133.27 secondary school situated in Minnesota, North Dakota, South 133.28 Dakota, Iowa, or Wisconsin, wherein a resident of this state may 133.29 legally fulfill the state's compulsory attendance laws, which is 133.30 not operated for profit, and which adheres to the provisions of 133.31 the Civil Rights Act of 1964 and chapter 363. For the purposes 133.32 of this clause, "tuition" includes not only tuition and fees for 133.33 attendance needed to fulfill the requirements of sections 133.34 120.101 and 120.102, but also fees and tuition paid for a 133.35 dependent in kindergarten through grade 12 for any study 133.36 conducted by a person meeting the teaching licensing 134.1 requirements of section 120.101, subdivision 7, clauses (1) to 134.2 (5), designed to improve the dependents' knowledge of core 134.3 curriculum areas and to expand the dependents' knowledge and 134.4 skills beyond foundational skills pursuant to the graduation 134.5 rule under section 121.11, subdivision 7c. As used in this 134.6 clause, "textbooks" includes books and other instructional 134.7 materials and equipment used in elementary and secondary schools 134.8 in teaching only those subjects legally and commonly taught in 134.9 public elementary and secondary schools in this 134.10 state. Equipment qualifying for deduction includes personal 134.11 computer hardware and educational software that assists a 134.12 dependent to improve knowledge of core curriculum areas and to 134.13 expand knowledge and skills pursuant to the graduation rule 134.14 under section 121.11, subdivision 7c, purchased for use in the 134.15 taxpayer's home and not used in a trade or business regardless 134.16 of whether the computer is required by the dependent's school. 134.17 "Textbooks" does not include instructional books and materials 134.18 used in the teaching of religious tenets, doctrines, or worship, 134.19 the purpose of which is to instill such tenets, doctrines, or 134.20 worship, nor does it include books or materials for, or 134.21 transportation to, extracurricular activities including sporting 134.22 events, musical or dramatic events, speech activities, driver's 134.23 education, or similar programs. In order to qualify for the134.24subtraction under this clause the taxpayer must elect to itemize134.25deductions under section 63(e) of the Internal Revenue Code; 134.26 (4) to the extent included in federal taxable income, 134.27 distributions from a qualified governmental pension plan, an 134.28 individual retirement account, simplified employee pension, or 134.29 qualified plan covering a self-employed person that represent a 134.30 return of contributions that were included in Minnesota gross 134.31 income in the taxable year for which the contributions were made 134.32 but were deducted or were not included in the computation of 134.33 federal adjusted gross income. The distribution shall be 134.34 allocated first to return of contributions until the 134.35 contributions included in Minnesota gross income have been 134.36 exhausted. This subtraction applies only to contributions made 135.1 in a taxable year prior to 1985; 135.2 (5) income as provided under section 290.0802; 135.3 (6) the amount of unrecovered accelerated cost recovery 135.4 system deductions allowed under subdivision 19g; 135.5 (7) to the extent included in federal adjusted gross 135.6 income, income realized on disposition of property exempt from 135.7 tax under section 290.491; 135.8 (8) to the extent not deducted in determining federal 135.9 taxable income, the amount paid for health insurance of 135.10 self-employed individuals as determined under section 162(l) of 135.11 the Internal Revenue Code, except that the 25 percent limit does 135.12 not apply. If the taxpayer deducted insurance payments under 135.13 section 213 of the Internal Revenue Code of 1986, the 135.14 subtraction under this clause must be reduced by the lesser of: 135.15 (i) the total itemized deductions allowed under section 135.16 63(d) of the Internal Revenue Code, less state, local, and 135.17 foreign income taxes deductible under section 164 of the 135.18 Internal Revenue Code and the standard deduction under section 135.19 63(c) of the Internal Revenue Code; or 135.20 (ii) the lesser of (A) the amount of insurance qualifying 135.21 as "medical care" under section 213(d) of the Internal Revenue 135.22 Code to the extent not deducted under section 162(1) of the 135.23 Internal Revenue Code or excluded from income or (B) the total 135.24 amount deductible for medical care under section 213(a); and 135.25 (9) the exemption amount allowed under Laws 1995, chapter 135.26 255, article 3, section 2, subdivision 3. 135.27 Sec. 2. [290.0672] [MINNESOTA EDUCATION CREDIT.] 135.28 Subdivision 1. [CREDIT ALLOWED.] A taxpayer may take as a 135.29 credit against the tax due from the taxpayer and a spouse, if 135.30 any, under this chapter in an amount equal to the amount the 135.31 taxpayer pays in fees or tuition for a dependent of the taxpayer 135.32 in kindergarten through grade 12 for the instruction of the 135.33 dependent by a person qualified to be an instructor pursuant to 135.34 section 120.101, subdivision 7, clauses (1) to (5), in the 135.35 curriculum core areas and knowledge and skills pursuant to the 135.36 graduation rule under section 121.11, subdivision 7c. 136.1 Subd. 2. [LIMITATIONS.] The credit is limited to $1,000 136.2 per child and $2,000 per family. No credit is allowed if the 136.3 taxpayer's income, as defined in section 290.067, subdivision 136.4 2a, exceeds $39,000. In the case of a married taxpayer, the 136.5 credit is not allowed unless a joint income tax return is 136.6 filed. For a nonresident or part-year resident, the credit 136.7 determined under subdivision 1 and the $1,000 per child and 136.8 $2,000 per family limits are further limited to amounts 136.9 determined by multiplying the percentage calculated under 136.10 section 290.06, subdivision 2c, paragraph (e), by the credit 136.11 determined by subdivision 1 and the $1,000 per child and $2,000 136.12 per family limits. 136.13 Subd. 3. [HOME SCHOOL.] If a dependent is educated in a 136.14 school where the taxpayer or spouse provides the instruction 136.15 necessary to meet the compulsory instruction requirements of 136.16 sections 120.101 and 120.102 in the taxpayer's home, the family 136.17 of the dependent is deemed to have incurred $1,000 of fees or 136.18 tuition qualifying under subdivision 1. The limit on income 136.19 under subdivision 2 does not apply to the credit allowed on the 136.20 deemed amount under this subdivision. A family is limited to 136.21 only one deemed amount of $1,000 per year. 136.22 Subd. 4. [CREDIT TO BE REFUNDABLE.] If the amount of 136.23 credit which a taxpayer would be eligible to receive pursuant to 136.24 this section exceeds the taxpayer's tax liability under this 136.25 chapter, the excess amount shall be refunded to the taxpayer by 136.26 the commissioner of revenue. 136.27 Subd. 5. [INFLATION ADJUSTMENT.] The dollar amount of the 136.28 income threshold in subdivision 2 must be adjusted for 136.29 inflation. The commissioner shall adjust the threshold amount 136.30 starting with tax years beginning after December 31, 1997, by 136.31 the percentage determined under section 290.06, subdivision 2d, 136.32 for the taxable year. 136.33 Subd. 6. [APPROPRIATION.] An amount sufficient to pay the 136.34 refunds required by this section is appropriated to the 136.35 commissioner from the general fund. 136.36 Sec. 3. [EFFECTIVE DATE.] 137.1 Sections 1 and 2 are effective for tax years beginning 137.2 after December 31, 1996. 137.3 ARTICLE 12 137.4 EDUCATION INVESTMENT 137.5 Section 1. [11A.165] [EDUCATION INVESTMENT FUND.] 137.6 Subdivision 1. [ESTABLISHMENT.] A fund called the 137.7 education investment fund is established in the state treasury 137.8 for the purpose of investing money for grants to post-secondary 137.9 students under section 136A.123. Accounts may be established 137.10 within the fund for specific fields of study or geographical 137.11 areas to which a corporation or individual wishes to 137.12 contribute. Accounts may not be established that discriminate 137.13 on the basis of race, ethnicity, or gender. 137.14 Subd. 2. [ASSETS.] The assets of the education investment 137.15 fund shall consist of money contributed by private corporations, 137.16 foundations, or individuals, and all income from the investment 137.17 of contributions to the fund. All assets of the fund are 137.18 appropriated for the purpose of supporting grants under section 137.19 136A.123. 137.20 Subd. 3. [MANAGEMENT.] The education investment fund shall 137.21 be managed by the board. 137.22 Subd. 4. [INVESTMENTS.] The education investment fund 137.23 shall be invested subject to the provisions of section 11A.24. 137.24 Subd. 5. [DISTRIBUTION OF ASSETS.] The board shall 137.25 annually transfer appropriations from the fund to the higher 137.26 education services office for distribution to eligible students 137.27 under section 136A.123. Appropriations transferred to the 137.28 higher education services office which are not spent do not 137.29 cancel but are available for grants in the following fiscal year. 137.30 Sec. 2. [136A.123] [EDUCATION INVESTMENT GRANT PROGRAM.] 137.31 Subdivision 1. [ESTABLISHMENT.] An education investment 137.32 grant program is established to provide grants to low-income 137.33 students who withdraw funds from a qualified savings plan to pay 137.34 for their post-secondary education. 137.35 Subd. 2. [ELIGIBILITY.] To be eligible to receive a grant 137.36 from an account within the fund, a student must be: 138.1 (1) a resident of the state of Minnesota; 138.2 (2) enrolled at least half time in an undergraduate program 138.3 of instruction at a public or private post-secondary 138.4 institution; and 138.5 (3) expend funds withdrawn from a savings plan under 138.6 section 290.0803 to pay for post-secondary education expenses in 138.7 the award year. 138.8 Subd. 3. [ALLOCATION; AWARDS.] Grants must be awarded on a 138.9 funds available basis from appropriations transferred to the 138.10 office by the state board of investment under section 11A.165. 138.11 The office shall establish rules to govern the size and 138.12 distribution of grant awards. If insufficient funds are 138.13 available to award grants to all eligible applicants, the office 138.14 shall give priority to applicants who demonstrate the greatest 138.15 savings effort relative to income. A grant awarded under this 138.16 section does not affect a recipient's eligibility for a state 138.17 grant under section 136A.121. 138.18 Sec. 3. Minnesota Statutes 1996, section 290.01, 138.19 subdivision 19a, is amended to read: 138.20 Subd. 19a. [ADDITIONS TO FEDERAL TAXABLE INCOME.] For 138.21 individuals, estates, and trusts, there shall be added to 138.22 federal taxable income: 138.23 (1)(i) interest income on obligations of any state other 138.24 than Minnesota or a political or governmental subdivision, 138.25 municipality, or governmental agency or instrumentality of any 138.26 state other than Minnesota exempt from federal income taxes 138.27 under the Internal Revenue Code or any other federal statute, 138.28 and 138.29 (ii) exempt-interest dividends as defined in section 138.30 852(b)(5) of the Internal Revenue Code, except the portion of 138.31 the exempt-interest dividends derived from interest income on 138.32 obligations of the state of Minnesota or its political or 138.33 governmental subdivisions, municipalities, governmental agencies 138.34 or instrumentalities, but only if the portion of the 138.35 exempt-interest dividends from such Minnesota sources paid to 138.36 all shareholders represents 95 percent or more of the 139.1 exempt-interest dividends that are paid by the regulated 139.2 investment company as defined in section 851(a) of the Internal 139.3 Revenue Code, or the fund of the regulated investment company as 139.4 defined in section 851(h) of the Internal Revenue Code, making 139.5 the payment; and 139.6 (iii) for the purposes of items (i) and (ii), interest on 139.7 obligations of an Indian tribal government described in section 139.8 7871(c) of the Internal Revenue Code shall be treated as 139.9 interest income on obligations of the state in which the tribe 139.10 is located; 139.11 (2) the amount of income taxes paid or accrued within the 139.12 taxable year under this chapter and income taxes paid to any 139.13 other state or to any province or territory of Canada, to the 139.14 extent allowed as a deduction under section 63(d) of the 139.15 Internal Revenue Code, but the addition may not be more than the 139.16 amount by which the itemized deductions as allowed under section 139.17 63(d) of the Internal Revenue Code exceeds the amount of the 139.18 standard deduction as defined in section 63(c) of the Internal 139.19 Revenue Code. For the purpose of this paragraph, the 139.20 disallowance of itemized deductions under section 68 of the 139.21 Internal Revenue Code of 1986, income tax is the last itemized 139.22 deduction disallowed; 139.23 (3) the capital gain amount of a lump sum distribution to 139.24 which the special tax under section 1122(h)(3)(B)(ii) of the Tax 139.25 Reform Act of 1986, Public Law Number 99-514, applies;and139.26 (4) the amount of income taxes paid or accrued within the 139.27 taxable year under this chapter and income taxes paid to any 139.28 other state or any province or territory of Canada, to the 139.29 extent allowed as a deduction in determining federal adjusted 139.30 gross income. For the purpose of this paragraph, income taxes 139.31 do not include the taxes imposed by sections 290.0922, 139.32 subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729; 139.33 and 139.34 (5) the amount provided by section 290.0803, subdivision 3. 139.35 Sec. 4. Minnesota Statutes 1996, section 290.01, 139.36 subdivision 19b, is amended to read: 140.1 Subd. 19b. [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For 140.2 individuals, estates, and trusts, there shall be subtracted from 140.3 federal taxable income: 140.4 (1) interest income on obligations of any authority, 140.5 commission, or instrumentality of the United States to the 140.6 extent includable in taxable income for federal income tax 140.7 purposes but exempt from state income tax under the laws of the 140.8 United States; 140.9 (2) if included in federal taxable income, the amount of 140.10 any overpayment of income tax to Minnesota or to any other 140.11 state, for any previous taxable year, whether the amount is 140.12 received as a refund or as a credit to another taxable year's 140.13 income tax liability; 140.14 (3) the amount paid to others not to exceed $650 for each 140.15 dependent in grades kindergarten to 6 and $1,000 for each 140.16 dependent in grades 7 to 12, for tuition, textbooks, and 140.17 transportation of each dependent in attending an elementary or 140.18 secondary school situated in Minnesota, North Dakota, South 140.19 Dakota, Iowa, or Wisconsin, wherein a resident of this state may 140.20 legally fulfill the state's compulsory attendance laws, which is 140.21 not operated for profit, and which adheres to the provisions of 140.22 the Civil Rights Act of 1964 and chapter 363. As used in this 140.23 clause, "textbooks" includes books and other instructional 140.24 materials and equipment used in elementary and secondary schools 140.25 in teaching only those subjects legally and commonly taught in 140.26 public elementary and secondary schools in this state. 140.27 "Textbooks" does not include instructional books and materials 140.28 used in the teaching of religious tenets, doctrines, or worship, 140.29 the purpose of which is to instill such tenets, doctrines, or 140.30 worship, nor does it include books or materials for, or 140.31 transportation to, extracurricular activities including sporting 140.32 events, musical or dramatic events, speech activities, driver's 140.33 education, or similar programs. In order to qualify for the 140.34 subtraction under this clause the taxpayer must elect to itemize 140.35 deductions under section 63(e) of the Internal Revenue Code; 140.36 (4) to the extent included in federal taxable income, 141.1 distributions from a qualified governmental pension plan, an 141.2 individual retirement account, simplified employee pension, or 141.3 qualified plan covering a self-employed person that represent a 141.4 return of contributions that were included in Minnesota gross 141.5 income in the taxable year for which the contributions were made 141.6 but were deducted or were not included in the computation of 141.7 federal adjusted gross income. The distribution shall be 141.8 allocated first to return of contributions until the 141.9 contributions included in Minnesota gross income have been 141.10 exhausted. This subtraction applies only to contributions made 141.11 in a taxable year prior to 1985; 141.12 (5) income as provided under section 290.0802; 141.13 (6) the amount of unrecovered accelerated cost recovery 141.14 system deductions allowed under subdivision 19g; 141.15 (7) to the extent included in federal adjusted gross 141.16 income, income realized on disposition of property exempt from 141.17 tax under section 290.491; 141.18 (8) to the extent not deducted in determining federal 141.19 taxable income, the amount paid for health insurance of 141.20 self-employed individuals as determined under section 162(l) of 141.21 the Internal Revenue Code, except that the 25 percent limit does 141.22 not apply. If the taxpayer deducted insurance payments under 141.23 section 213 of the Internal Revenue Code of 1986, the 141.24 subtraction under this clause must be reduced by the lesser of: 141.25 (i) the total itemized deductions allowed under section 141.26 63(d) of the Internal Revenue Code, less state, local, and 141.27 foreign income taxes deductible under section 164 of the 141.28 Internal Revenue Code and the standard deduction under section 141.29 63(c) of the Internal Revenue Code; or 141.30 (ii) the lesser of (A) the amount of insurance qualifying 141.31 as "medical care" under section 213(d) of the Internal Revenue 141.32 Code to the extent not deducted under section 162(1) of the 141.33 Internal Revenue Code or excluded from income or (B) the total 141.34 amount deductible for medical care under section 213(a);and141.35 (9) the exemption amount allowed under Laws 1995, chapter 141.36 255, article 3, section 2, subdivision 3; and 142.1 (10) the subtraction provided by section 290.0803, 142.2 subdivision 2. 142.3 Sec. 5. [290.0803] [HIGHER EDUCATION TRUSTS.] 142.4 Subdivision 1. [DEFINITIONS.] (a) For the purposes of this 142.5 section, the following terms have the meanings given them. 142.6 (b) "Higher education trust" means a grantor trust created 142.7 or organized in Minnesota for the purpose of funding the 142.8 qualified education expenses of the grantor, but only if the 142.9 written governing instrument creating the trust meets the 142.10 following requirements: 142.11 (1) No contributions shall be accepted unless it is in 142.12 cash, and contributions shall not be accepted for the taxable 142.13 year in excess of $2,000. 142.14 (2) The trustee is a bank or other person who demonstrates 142.15 to the satisfaction of the commissioner that the manner in which 142.16 the other person will administer the trust will be consistent 142.17 with the requirements of this section. 142.18 (3) No part of the trust funds shall be invested in life 142.19 insurance contracts. 142.20 (4) The interest of an individual in the balance of the 142.21 individual's account is nonforfeitable. 142.22 (5) The assets of the trust shall not be commingled with 142.23 other property except in a common trust fund or common 142.24 investment fund. 142.25 (6) The trust is not taxed for federal tax purposes as an 142.26 individual retirement account under section 408 of the Internal 142.27 Revenue Code. 142.28 (c) "Qualified education expense of the grantor" means 142.29 tuition, books, and fees required for the enrollment or 142.30 attendance at an eligible education institution of the grantor; 142.31 the grantor's spouse; or any child, grandchild, or ancestor of 142.32 the grantor or grantor's spouse. A qualified education expense 142.33 of the grantor does not include expenses with respect to any 142.34 course or other education involving sports, games, or hobbies 142.35 other than as part of a degree program. 142.36 The amount of qualified higher education expenses otherwise 143.1 taken into account under this paragraph with respect to the 143.2 education of an individual shall be reduced, before the 143.3 application of this paragraph, by the sum of the amounts 143.4 received with respect to the individual for the taxable year as: 143.5 (1) a qualified scholarship which under section 117 of the 143.6 Internal Revenue Code of 1986 is not includable in gross income; 143.7 (2) an educational assistance allowance under United States 143.8 Code, title 38, chapter 30, 31, 32, 34, or 35; 143.9 (3) a payment, other than a gift, bequest, devise, or 143.10 inheritance within the meaning of section 102(a) of the Internal 143.11 Revenue Code for educational expenses, or attributable to 143.12 attendance at an eligible educational institution, which is 143.13 exempt from income taxation by any law of the United States; or 143.14 (4) amounts excluded from federal taxable income under 143.15 section 135 of the Internal Revenue Code. 143.16 (d) For the purposes of paragraph (c), "eligible 143.17 educational institution" means: 143.18 (1) an institution described in section 1201(a) or 143.19 subparagraph (C) or (D) of section 481(a)(1) of the Higher 143.20 Education Act of 1965; or 143.21 (2) an area vocational education school, as defined in 143.22 subparagraph (C) or (D) of section 521(3) of the Carl D. 143.23 Perkins' Vocational Education Act, that is in any state, as 143.24 defined in section 521(27) of the Carl D. Perkins' Vocational 143.25 Education Act. 143.26 Subd. 2. [SUBTRACTION.] The grantor is allowed a 143.27 subtraction from federal taxable income in the amount of (1) the 143.28 contribution made by the grantor to a higher education trust in 143.29 the grantor's taxable year, and (2) any net income or net 143.30 capital gain other than income which is excluded from Minnesota 143.31 tax by section 290.01, subdivision 19b, clause (1), generated by 143.32 the higher education trust that is included in the grantor's 143.33 federal taxable income for the year. 143.34 Subd. 3. [ADDITION.] The net income or capital loss of a 143.35 higher education trust for a tax year which is included in the 143.36 computation of the grantor's federal taxable income must be 144.1 added to federal taxable income to the extent the loss is 144.2 included in the grantor's computation of federal taxable income. 144.3 Subd. 4. [TAX ON DISTRIBUTION FROM A HIGHER EDUCATION 144.4 TRUST.] In the event of distribution from a higher education 144.5 trust within five years of the establishment of the higher 144.6 education trust or in a year in which the distribution exceeds 144.7 the qualified education expense of the grantor for the year 144.8 notwithstanding any provision to the contrary, there is imposed 144.9 on the grantor or the grantor's estate an additional tax in the 144.10 amount of (1) two percent plus the highest marginal tax rate 144.11 applicable to the grantor's net income in the year of 144.12 distribution under section 290.06, subdivision 2c, paragraph 144.13 (a), multiplied by the amount of the distribution if the 144.14 distribution is made within five years of the establishment of 144.15 the trust; or (2) the percentage determined under clause (1) 144.16 multiplied by the amount of the distribution which exceeds the 144.17 qualified education expense of the grantor for the year for 144.18 distributions from a trust in existence for more than five years. 144.19 This tax applies regardless of whether the true grantor is 144.20 a resident or nonresident of Minnesota in the year of 144.21 distribution. 144.22 In no event shall the cumulative distributions subject to 144.23 the tax in this subdivision exceed the cumulative amount of 144.24 subtractions less cumulative additions claimed by the grantor on 144.25 the grantor's Minnesota individual income tax returns for tax 144.26 years prior to the year of distribution. Notwithstanding the 144.27 filing requirements of section 289A.08, subdivision 1, a grantor 144.28 is required to file a Minnesota individual tax return for any 144.29 year in which the tax provided by this subdivision is imposed. 144.30 Subd. 5. [RETURNS OF HIGHER EDUCATION TRUSTS.] For each 144.31 year a higher education trust is in existence, the grantor of 144.32 the trust is required to file a return with the commissioner by 144.33 October 15 of the year following the tax year. The return must 144.34 include the social security number of the grantor, the amount of 144.35 the contributions made to the trust by the grantor in the year, 144.36 the amount of net income or loss of the trust for the year, the 145.1 amount of distributions made in the year, and the amount of the 145.2 qualified higher education expense incurred by the grantor in 145.3 the year. 145.4 Subd. 6. [SUNSET OF THE SUBTRACTION AND ADDITION.] If the 145.5 federal government enacts an income tax provision providing for 145.6 nondeductible individual retirement accounts similar to the 145.7 provision proposed by Congress in section 11015 of Revenue 145.8 Reconciliation and Tax Simplification Provisions from Conference 145.9 Report on HR 2491, Seven-Year Balanced Budget Reconciliation Act 145.10 of 1995, filed November 16, 1995, the subtraction and additions 145.11 provided by subdivisions 2 and 3 will not be allowed for tax 145.12 years beginning after the year of federal enactment. 145.13 Subd. 7. [ROLL-OVER OF DISTRIBUTIONS FROM HIGHER EDUCATION 145.14 TRUSTS MADE AFTER THE YEAR OF THE SUNSET OF SUBDIVISION 2.] If 145.15 the federal government enacts a tax provision as provided in 145.16 subdivision 6, the tax imposed by subdivision 4 will be reduced 145.17 by 8.5 percent of the amount contributed by the grantor to the 145.18 nondeductible individual retirement account established by the 145.19 grantor, other than the roll-over proceeds from an individual 145.20 retirement account governed by section 407 of the Internal 145.21 Revenue Code, in the year of distribution. 145.22 Sec. 6. Minnesota Statutes 1996, section 290.091, 145.23 subdivision 2, is amended to read: 145.24 Subd. 2. [DEFINITIONS.] For purposes of the tax imposed by 145.25 this section, the following terms have the meanings given: 145.26 (a) "Alternative minimum taxable income" means the sum of 145.27 the following for the taxable year: 145.28 (1) the taxpayer's federal alternative minimum taxable 145.29 income as defined in section 55(b)(2) of the Internal Revenue 145.30 Code; 145.31 (2) the taxpayer's itemized deductions allowed in computing 145.32 federal alternative minimum taxable income, but excluding the 145.33 Minnesota charitable contribution deduction and the medical 145.34 expense deduction; 145.35 (3) for depletion allowances computed under section 613A(c) 145.36 of the Internal Revenue Code, with respect to each property (as 146.1 defined in section 614 of the Internal Revenue Code), to the 146.2 extent not included in federal alternative minimum taxable 146.3 income, the excess of the deduction for depletion allowable 146.4 under section 611 of the Internal Revenue Code for the taxable 146.5 year over the adjusted basis of the property at the end of the 146.6 taxable year (determined without regard to the depletion 146.7 deduction for the taxable year); 146.8 (4) to the extent not included in federal alternative 146.9 minimum taxable income, the amount of the tax preference for 146.10 intangible drilling cost under section 57(a)(2) of the Internal 146.11 Revenue Code determined without regard to subparagraph (E); 146.12 (5) to the extent not included in federal alternative 146.13 minimum taxable income, the amount of interest income as 146.14 provided by section 290.01, subdivision 19a, clause (1); 146.15 less the sum of the amounts determined under the following 146.16 clauses (1) to(3)(4): 146.17 (1) interest income as defined in section 290.01, 146.18 subdivision 19b, clause (1); 146.19 (2) an overpayment of state income tax as provided by 146.20 section 290.01, subdivision 19b, clause (2), to the extent 146.21 included in federal alternative minimum taxable income;and146.22 (3) the amount of investment interest paid or accrued 146.23 within the taxable year on indebtedness to the extent that the 146.24 amount does not exceed net investment income, as defined in 146.25 section 163(d)(4) of the Internal Revenue Code. Interest does 146.26 not include amounts deducted in computing federal adjusted gross 146.27 income; and 146.28 (4) the amount provided in section 290.01, subdivision 19b, 146.29 clause (10). 146.30 In the case of an estate or trust, alternative minimum 146.31 taxable income must be computed as provided in section 59(c) of 146.32 the Internal Revenue Code. 146.33 (b) "Investment interest" means investment interest as 146.34 defined in section 163(d)(3) of the Internal Revenue Code. 146.35 (c) "Tentative minimum tax" equals seven percent of 146.36 alternative minimum taxable income after subtracting the 147.1 exemption amount determined under subdivision 3. 147.2 (d) "Regular tax" means the tax that would be imposed under 147.3 this chapter (without regard to this section and section 147.4 290.032), reduced by the sum of the nonrefundable credits 147.5 allowed under this chapter. 147.6 (e) "Net minimum tax" means the minimum tax imposed by this 147.7 section. 147.8 (f) "Minnesota charitable contribution deduction" means a 147.9 charitable contribution deduction under section 170 of the 147.10 Internal Revenue Code to or for the use of an entity described 147.11 in section 290.21, subdivision 3, clauses (a) to (e). When the 147.12 federal deduction for charitable contributions is limited under 147.13 section 170(b) of the Internal Revenue Code, the allowable 147.14 contributions in the year of contribution are deemed to be first 147.15 contributions to entities described in section 290.21, 147.16 subdivision 3, clauses (a) to (e). 147.17 Sec. 7. Minnesota Statutes 1996, section 290.091, 147.18 subdivision 6, is amended to read: 147.19 Subd. 6. [CREDIT FOR PRIOR YEARS' LIABILITY.] (a) A credit 147.20 is allowed against the tax imposed by this chapter on 147.21 individuals, trusts, and estates equal to the minimum tax credit 147.22 for the taxable year. The minimum tax credit equals the 147.23 adjusted net minimum tax for taxable years beginning after 147.24 December 31, 1988, reduced by the minimum tax credits allowed in 147.25 a prior taxable year. The credit may not exceed the excess (if 147.26 any) for the taxable year of 147.27 (1) the regular tax, over 147.28 (2) the greater of (i) the tentative alternative minimum 147.29 tax, or (ii) zero. 147.30 (b) The adjusted net minimum tax for a taxable year equals 147.31 the lesser of the net minimum tax or the excess (if any) of 147.32 (1) the tentative minimum tax, over 147.33 (2) seven percent of the sum of 147.34 (i) adjusted gross income as defined in section 62 of the 147.35 Internal Revenue Code, 147.36 (ii) interest income as defined in section 290.01, 148.1 subdivision 19a, clause (1), 148.2 (iii) interest on specified private activity bonds, as 148.3 defined in section 57(a)(5) of the Internal Revenue Code, to the 148.4 extent not included under clause (ii), 148.5 (iv) depletion as defined in section 57(a)(1), determined 148.6 without regard to the last sentence of paragraph (1), of the 148.7 Internal Revenue Code, less 148.8 (v) the deductions provided in subdivision 2, paragraph 148.9 (a), clauses(5), items (i), (ii), and (iii)(1) to (4) of the 148.10 second series of clauses, and 148.11 (vi) the exemption amount determined under subdivision 3. 148.12 In the case of an individual who is not a Minnesota 148.13 resident for the entire year, adjusted net minimum tax must be 148.14 multiplied by the fraction defined in section 290.06, 148.15 subdivision 2c, paragraph (e). In the case of a trust or 148.16 estate, adjusted net minimum tax must be multiplied by the 148.17 fraction defined under subdivision 4, paragraph (b). 148.18 Sec. 8. [EFFECTIVE DATE.] 148.19 Sections 3 to 7 are effective for tax years beginning after 148.20 December 31, 1996. 148.21 ARTICLE 13 148.22 STATE AGENCIES 148.23 Section 1. [APPROPRIATIONS; DEPARTMENT OF CHILDREN, 148.24 FAMILIES, AND LEARNING.] 148.25 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 148.26 LEARNING.] The sums indicated in this section are appropriated 148.27 from the general fund to the department of children, families, 148.28 and learning for the fiscal years designated. 148.29 Subd. 2. [DEPARTMENT.] For the department of children, 148.30 families, and learning: 148.31 $24,548,000 ..... 1998 148.32 $24,166,000 ..... 1999 148.33 (a) Any balance in the first year does not cancel but is 148.34 available in the second year. 148.35 (b) $21,000 each year is from the trunk highway fund. 148.36 (c) $622,000 in 1998 and $627,000 in 1999 is for the 149.1 academic excellence foundation. 149.2 Up to $50,000 each year is contingent upon the match of $1 149.3 in the previous year from private sources consisting of either 149.4 direct monetary contributions or in-kind contributions of 149.5 related goods or services, for each $1 of the appropriation. 149.6 The commissioner of children, families, and learning must 149.7 certify receipt of the money or documentation for the private 149.8 matching funds or in-kind contributions. The unencumbered 149.9 balance from the amount actually appropriated from the 149.10 contingent amount in 1996 does not cancel but is available in 149.11 1997. The amount carried forward must not be used to establish 149.12 a larger annual base appropriation for later fiscal years. 149.13 (d) $207,000 in 1998 and $210,000 in 1999 is for the state 149.14 board of education. 149.15 (e) $230,000 in 1998 and $234,000 in 1999 is for the board 149.16 of teaching. 149.17 (f) $775,000 each year is for educational effectiveness 149.18 programs according to Minnesota Statutes, sections 121.602 and 149.19 121.608. 149.20 (g) $60,000 each year is for contracting with the state 149.21 fire marshal to provide the services required according to 149.22 Minnesota Statutes, section 121.1502. 149.23 (h) $400,000 each year is for health and safety management 149.24 assistance contracts under Minnesota Statutes, section 124.83. 149.25 (i) The expenditures of federal grants and aids as shown in 149.26 the biennial budget document and its supplements are approved 149.27 and appropriated and shall be spent as indicated. 149.28 (j) The commissioner shall maintain no more than five total 149.29 complement in the categories of commissioner, deputy 149.30 commissioner, assistant commissioner, assistant to the 149.31 commissioner, and executive assistant. 149.32 The department of children, families, and learning may 149.33 establish full-time, part-time, or seasonal positions as 149.34 necessary to carry out assigned responsibilities and missions. 149.35 Actual employment levels are limited by the availability of 149.36 state funds appropriated for salaries, benefits, and agency 150.1 operations or funds available from other sources for such 150.2 purposes. 150.3 (k) The department of children, families, and learning 150.4 shall develop a performance report on the quality of its 150.5 programs and services. The report must be consistent with the 150.6 process specified in Minnesota Statutes, sections 15.90 to 150.7 15.92. The goals, objectives, and measures of this report must 150.8 be developed in cooperation with the chairs of the finance 150.9 divisions of the education committees of the house of 150.10 representatives and senate, the department of finance, and the 150.11 office of legislative auditor. The report must include data to 150.12 indicate the progress of the department in meeting its goals and 150.13 objectives. 150.14 The department of children, families, and learning must 150.15 present a biennial report on the quality and performance of key 150.16 education programs in Minnesota's public early childhood, 150.17 elementary, middle, and secondary education programs. To the 150.18 extent possible, the plan must be consistent with Minnesota 150.19 Statutes, sections 15.90 to 15.92 and the provisions of article 150.20 7, section 10, paragraphs (a) and (b). The department must 150.21 consult with the chairs of the finance divisions of the 150.22 education committees of the house of representatives and senate, 150.23 the department of finance, and the office of legislative auditor 150.24 in developing this plan. 150.25 (l) $188,000 each year is appropriated from the special 150.26 revenue fund for the graduation rule. The department 150.27 appropriation is to be used to fund continued assessment and 150.28 standards development and piloting; to broaden public 150.29 understanding through communication; to continue development of 150.30 learning benchmarks; for ongoing statewide assessment efforts; 150.31 to develop system performance standards; and to provide 150.32 technical assistance to schools throughout the state. The 150.33 appropriation from the special revenue fund is to be used for 150.34 appropriate development efforts in health-related standards and 150.35 assessments. The commissioner may transfer any portion of this 150.36 appropriation not needed for the purpose of this paragraph to 151.1 the Minnesota highway safety center at St. Cloud University. 151.2 Any amount of this appropriation does not cancel and shall be 151.3 carried forward to the following fiscal year. Notwithstanding 151.4 any law to the contrary, the commissioner may contract for 151.5 national expertise and related services in each of these 151.6 development areas. Notwithstanding Minnesota Statutes, section 151.7 15.53, subdivision 2, the commissioner of children, families, 151.8 and learning may contract with a school district for a period no 151.9 longer than five consecutive years for the services of an 151.10 educator to work in the development, implementation, or both, of 151.11 the graduation rule. The commissioner may contract for services 151.12 and expertise as necessary for development and implementation of 151.13 the graduation standards. Notwithstanding any law to the 151.14 contrary, the contracts are not subject to the contract 151.15 certification procedures of the commissioner of administration 151.16 or of Minnesota Statutes, chapter 16B, and are not subject to or 151.17 included in any spending limitations on contracts. 151.18 Sec. 2. [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 151.19 CENTER FOR ARTS EDUCATION.] 151.20 The sums indicated in this section are appropriated from 151.21 the general fund to the center for arts education for the fiscal 151.22 years designated: 151.23 $5,541,000 ..... 1998 151.24 $6,054,000 ..... 1999 151.25 Of the fiscal year 1998 appropriation, $154,000 is to fund 151.26 artist and arts organization participation in the education 151.27 residency and education technology projects, $75,000 is for 151.28 school support for the residency project, and $121,000 is for 151.29 further development of the partners: arts and school for 151.30 students (PASS) program, including pilots. Of the fiscal year 151.31 1999 appropriation, $154,000 is to fund artist and arts 151.32 organizations participation in the education residency project, 151.33 $75,000 is for school support for the residency project, and 151.34 $121,000 is to fund the PASS program, including additional 151.35 pilots. The guidelines for the education residency project and 151.36 the pass program shall be developed and defined by the center 152.1 for arts education in cooperation with the Minnesota arts 152.2 board. The Minnesota arts board shall participate in the review 152.3 and allocation process. The center for arts education and the 152.4 Minnesota arts board shall cooperate to fund these projects. 152.5 The center for arts education may establish full-time, 152.6 part-time, or seasonal positions as necessary to carry out 152.7 assigned responsibilities and missions. Actual employment 152.8 levels are limited by the availability of state funds 152.9 appropriated for salaries, benefits and agency operations or 152.10 funds available from other sources for such purposes. 152.11 Any balance in the first year does not cancel, but is 152.12 available in the second year. 152.13 Sec. 3. [APPROPRIATIONS; FARIBAULT ACADEMIES.] 152.14 The sums indicated in this section are appropriated from 152.15 the general fund to the department of children, families, and 152.16 learning for the Faribault academies for the fiscal years 152.17 designated: 152.18 $8,910,000 ..... 1998 152.19 $8,908,000 ..... 1999 152.20 Any balance in the first year does not cancel but is 152.21 available in the second year. 152.22 The state board of education may establish full-time, 152.23 part-time, or seasonal positions as necessary to carry out 152.24 assigned responsibilities and missions of the Faribault 152.25 academies. Actual employment levels are limited by the 152.26 availability of state funds appropriated for salaries, benefits 152.27 and agency operations or funds available from other sources for 152.28 such purposes. 152.29 In the next biennial budget, the academies must assess 152.30 their progress in meeting the established performance measures 152.31 for the Faribault academies and inform the legislature on the 152.32 content of that assessment. The information must include an 152.33 assessment of its progress by consumers and employees.