as introduced - 79th Legislature, 1995 1st Special Session (1995 - 1995) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to government financing; providing for 1.3 education general and uniform revenue; education 1.4 transportation; education special programs; community 1.5 programs; education facilities; education organization 1.6 and cooperation; education excellence; other education 1.7 programs; miscellaneous education provisions; 1.8 libraries; state agencies; education technology; 1.9 technical and conforming amendments; budget reserve 1.10 and cost management; education targeted needs revenue; 1.11 establishing the department of children, families, and 1.12 learning; providing for penalties; appropriating 1.13 money; amending Minnesota Statutes 1994, sections 1.14 6.62, subdivision 1; 13.43, subdivision 2; 16A.152, 1.15 subdivisions 2, 4, and by adding a subdivision; 1.16 16B.465; 43A.316, subdivision 2; 62L.08, subdivision 1.17 7a; 116J.655; 120.064; 120.101, subdivision 5c, and by 1.18 adding a subdivision; 120.17, subdivisions 3a, 3b, and 1.19 by adding a subdivision; 120.74, subdivision 1; 1.20 120.75, subdivision 1; 121.11, subdivision 7c; 121.15, 1.21 subdivision 6; 121.207, subdivisions 2 and 3; 121.702, 1.22 by adding a subdivision; 121.705; 121.706; 121.707, 1.23 subdivisions 2, 3, 4, 6, and 7; 121.708; 121.709; 1.24 121.710; 121.8355, subdivision 2; 121.885, 1.25 subdivisions 1 and 4; 121.904, subdivisions 4a and 4c; 1.26 121.912, subdivisions 1, 1b, and 6; 121.931; 121.932; 1.27 121.933, subdivision 1; 121.935; 122.21, subdivision 1.28 4; 122.532, subdivision 3a; 122.895, subdivisions 1, 1.29 8, and 9; 122.91, subdivisions 1, 2, and 2a; 122.92, 1.30 subdivision 1; 122.93, subdivision 1; 122.94, 1.31 subdivision 1; 123.34, by adding a subdivision; 1.32 123.35, subdivision 19b; 123.351, subdivisions 1, 3, 1.33 4, and 5; 123.3514, subdivisions 4d, 7, 8, and by 1.34 adding a subdivision; 123.39, subdivision 1; 123.70, 1.35 subdivision 8; 123.78, subdivision 1; 123.79, 1.36 subdivision 1; 123.7991, subdivisions 2 and 3; 1.37 123.805, subdivisions 1 and 2; 124.06; 124.14, by 1.38 adding a subdivision; 124.155, subdivision 2; 124.17, 1.39 subdivisions 1, 1d, 2f, and by adding a subdivision; 1.40 124.193; 124.195, subdivision 10, and by adding 1.41 subdivisions; 124.2139; 124.214, subdivisions 2 and 3; 1.42 124.223; 124.225, subdivisions 1, 3a, 7b, 7d, 7f, 8a, 1.43 8l, 8m, 9, and by adding subdivisions; 124.226, 1.44 subdivisions 3, 4, 9, and by adding a subdivision; 1.45 124.243, subdivision 2; 124.244, subdivisions 1 and 4; 1.46 124.2445; 124.2455; 124.248; 124.261, subdivision 1; 2.1 124.2711, subdivision 2a; 124.2713, subdivision 6; 2.2 124.2725, subdivisions 1, 3, 4, and 15; 124.2726, 2.3 subdivisions 1, 2, and 4; 124.2728, subdivision 1; 2.4 124.273, by adding subdivisions; 124.32, subdivisions 2.5 7, 10, and 12; 124.321, subdivisions 1 and 2; 124.322; 2.6 124.323, subdivisions 1, 2, and by adding a 2.7 subdivision; 124.431, subdivision 2; 124.574, 2.8 subdivisions 7, 9, and by adding subdivisions; 124.83, 2.9 subdivision 4; 124.84, subdivision 3; 124.91, 2.10 subdivisions 3 and 5; 124.912, subdivision 1; 124.916, 2.11 subdivision 2; 124.918, subdivisions 1 and 2; 124.95, 2.12 subdivisions 2, 4, and 6; 124.961; 124A.02, 2.13 subdivision 16; 124A.03, subdivisions 1c, 1g, 1h, and 2.14 2; 124A.0311, subdivision 4; 124A.22, subdivisions 1, 2.15 2, 3, 4, 4a, 4b, 6, 6a, 8a, 9, and by adding 2.16 subdivisions; 124A.225, subdivisions 1 and 2; 124A.23, 2.17 subdivisions 1 and 4; 124A.24; 124A.29, subdivision 1; 2.18 124C.07; 124C.08, subdivision 2; 124C.45, subdivision 2.19 1; 124C.46, subdivision 2; 124C.48, subdivision 1; 2.20 124C.60, subdivision 1; 125.12, subdivision 3; 125.62, 2.21 subdivisions 1 and 7; 125.623, subdivision 2; 126.031, 2.22 subdivision 1; 126.15, subdivision 2; 126.22, 2.23 subdivisions 2 and 3; 126.49, by adding a subdivision; 2.24 126.666, subdivision 2; 126.70; 126.78, subdivision 2; 2.25 126A.01; 126A.02, subdivision 2; 126B.01; 126B.03, 2.26 subdivisions 2 and 3; 127.40; 127.41; 127.42; 128A.02, 2.27 subdivisions 1, 3, 5, and by adding a subdivision; 2.28 128A.021; 128A.022, subdivisions 1 and 6; 128A.024, 2.29 subdivision 4; 128A.025, subdivisions 1 and 2; 2.30 128A.026; 128A.05, subdivisions 1 and 2; 128B.08; 2.31 128B.10, subdivision 1; 134.155; 134.34, subdivision 2.32 4a; 134.351, subdivision 4; 169.01, subdivision 6; 2.33 169.21, subdivision 2; 169.444, subdivision 2; 2.34 169.4502, subdivision 4; 169.4503, by adding a 2.35 subdivision; 169.451, by adding a subdivision; 2.36 169.452; 169.454, subdivision 5, and by adding a 2.37 subdivision; 171.01, subdivision 21; 171.18, 2.38 subdivision 1; 171.321, subdivisions 3, 4, and 5; 2.39 171.3215, subdivisions 1, 2, and 3; 237.065; 256F.13, 2.40 subdivision 1; 275.065, subdivision 1; 275.60; 2.41 469.1831, subdivision 4; 631.40, subdivision 1a; Laws 2.42 1965, chapter 705, section 1, subdivisions 3 and 4; 2.43 Laws 1992, chapter 499, article 11, section 9, as 2.44 amended; Laws 1993, chapter 224, article 8, section 2.45 21, subdivision 1; Laws 1993, chapter 224, article 12, 2.46 section 32, as amended; Laws 1993, chapter 224, 2.47 article 12, sections 39 and 41; Laws 1994, chapter 2.48 587, article 3, section 19, subdivision 1; Laws 1994, 2.49 chapter 647, article 1, section 36; Laws 1994, chapter 2.50 647, article 3, section 25; and Laws 1994, chapter 2.51 647, article 7, section 15; proposing coding for new 2.52 law in Minnesota Statutes, chapters 120; 123; 124; 2.53 124C; 126B; 127; 134; 136D; 145; 169; 604A; proposing 2.54 coding for new law as Minnesota Statutes, chapter 2.55 119A; repealing Minnesota Statutes 1994, sections 2.56 3.198; 121.702, subdivision 9; 121.703; 121.912, 2.57 subdivision 8; 121.93; 121.936; 123.58; 124.17, 2.58 subdivision 1b; 124.243; 124.244; 124.273, 2.59 subdivisions 1b and 2c; 124.32, subdivisions 1b, 1c, 2.60 1d, 1f, 2, and 3a; 124.574, subdivisions 2b, 3, 4, and 2.61 4a; 124.912, subdivision 8; 124.962; 124A.04, 2.62 subdivision 1; 124A.26; 124A.27, subdivision 11; 2.63 125.05, subdivision 7; 125.138, subdivisions 6, 7, 8, 2.64 9, 10, and 11; 125.231, subdivision 2; 126.019; 2.65 126B.02; 126B.03, subdivision 1; 126B.04; 126B.05; 2.66 128A.02, subdivisions 2 and 4; 128A.03; Laws 1991, 2.67 chapter 265, article 5, section 23, as amended; Laws 2.68 1992, chapter 499, article 7, section 27; Laws 1993, 2.69 First Special Session chapter 2, article 5, sections 2.70 1; and 2, as amended; and Laws 1995, chapter 207, 2.71 article 1, section 9, subdivision 3. 3.1 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 3.2 ARTICLE 1 3.3 GENERAL AND UNIFORM REVENUE 3.4 Section 1. Minnesota Statutes 1994, section 6.62, 3.5 subdivision 1, is amended to read: 3.6 Subdivision 1. [LEVY OF TAX.] Counties, cities and towns 3.7 are authorized, if necessary, to levy an amount sufficient to 3.8 pay the expense of a postaudit by the state auditor. 3.9A school district is authorized to levy an amount3.10sufficient to pay for the expense of a postaudit by the state3.11auditor if the audit is performed at the discretion of the state3.12auditor pursuant to section 6.51 or if the audit has been3.13requested through a petition by eligible voters pursuant to3.14section 6.54. A school district is not authorized to levy these3.15amounts if the postaudit by the state auditor is requested by3.16the school board pursuant to section 6.55.3.17 Sec. 2. Minnesota Statutes 1994, section 121.15, 3.18 subdivision 6, is amended to read: 3.19 Subd. 6. [REVIEW AND COMMENT.]No referendum for bonds or3.20solicitation of bidsA school district must not initiate an 3.21 installment contract for purchase, hold a referendum for bonds, 3.22 nor solicit bids for new construction, expansion, or remodeling 3.23 of an educational facility that requires an expenditure in 3.24 excess of $400,000 per school siteshall be initiatedprior to 3.25 review and comment by the commissioner. A school board shall 3.26 not separate portions of a single project into components to 3.27 avoid the requirements of this subdivision. 3.28 Sec. 3. Minnesota Statutes 1994, section 121.904, 3.29 subdivision 4a, is amended to read: 3.30 Subd. 4a. [LEVY RECOGNITION.] (a) "School district tax 3.31 settlement revenue" means the current, delinquent, and 3.32 manufactured home property tax receipts collected by the county 3.33 and distributed to the school district, including distributions 3.34 made pursuant to section 279.37, subdivision 7, and excluding 3.35 the amount levied pursuant to section 124.914, subdivision 1. 3.36 (b) In June of each year, the school district shall 4.1 recognize as revenue, in the fund for which the levy was made, 4.2 the lesser of: 4.3 (1) the May, June, and July school district tax settlement 4.4 revenue received in that calendar year; or 4.5 (2) the sum of the state aids and credits enumerated in 4.6 section 124.155, subdivision 2, which are for the fiscal year 4.7 payable in that fiscal year plus an amount equal to the levy 4.8 recognized as revenue in June of the prior year plus37.448 4.9 percent for fiscal year19941996 and thereafter of the amount 4.10 of the levy certified in the prior calendar year according to 4.11 section 124A.03, subdivision 2, plus or minus auditor's 4.12 adjustments, not including levy portions that are assumed by the 4.13 state; or 4.14 (3)37.448 percent for fiscal year19941996 and 4.15 thereafter of the amount of the levy certified in the prior 4.16 calendar year, plus or minus auditor's adjustments, not 4.17 including levy portions that are assumed by the state, which 4.18 remains after subtracting, by fund, the amounts levied for the 4.19 following purposes: 4.20 (i) reducing or eliminating projected deficits in the 4.21 reserved fund balance accounts for unemployment insurance and 4.22 bus purchases; 4.23 (ii) statutory operating debt pursuant to section 124.914, 4.24 subdivision 1; 4.25 (iii) retirement and severance pay pursuant to sections 4.26 122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 4.27 124.912, subdivision 1, and 124.916, subdivision 3, and Laws 4.28 1975, chapter 261, section 4; 4.29 (iv) amounts levied for bonds issued and interest thereon, 4.30 amounts levied for debt service loans and capital loans, amounts 4.31 levied for down payments under section 124.82, subdivision 3, 4.32 and amounts levied pursuant to section 136C.411; and 4.33 (v) amounts levied under section 124.755. 4.34 (c) In July of each year, the school district shall 4.35 recognize as revenue that portion of the school district tax 4.36 settlement revenue received in that calendar year and not 5.1 recognized as revenue for the previous fiscal year pursuant to 5.2 clause (b). 5.3 (d) All other school district tax settlement revenue shall 5.4 be recognized as revenue in the fiscal year of the settlement. 5.5 Portions of the school district levy assumed by the state, 5.6 including prior year adjustments and the amount to fund the 5.7 school portion of the reimbursement made pursuant to section 5.8 273.425, shall be recognized as revenue in the fiscal year 5.9 beginning in the calendar year for which the levy is payable. 5.10 Sec. 4. Minnesota Statutes 1994, section 121.904, 5.11 subdivision 4c, is amended to read: 5.12 Subd. 4c. [PROPERTY TAX SHIFT REDUCTIONCHANGE IN LEVY 5.13 RECOGNITION PERCENT.] (a) Money appropriated under section 5.14 16A.152, subdivision 2, must be used to reduce the levy 5.15 recognition percent specified in subdivision 4a, clauses (b)(2) 5.16 and (b)(3), for taxes payable in the succeeding calendar year. 5.17 (b) The levy recognition percent shall equal the result of 5.18 the following computation: the current levy recognition 5.19 percent, times the ratio of 5.20 (1) the statewide total amount of levy recognized in June 5.21 of the year in which the taxes are payable pursuant to 5.22 subdivision 4a, clause (b), excluding those levies that are 5.23 shifted for revenue recognition but are not included in the 5.24 computation of the adjustment to aids under section 124.155, 5.25 subdivision 1, reduced by the difference between the amount of 5.26 money appropriated under section 16A.152, subdivision 2, and the 5.27 amount required for the adjustment payment under clause (d), to 5.28 (2) the statewide total amount of the levy recognized in 5.29 June of the year in which the taxes are payable pursuant to 5.30 subdivision 4a, clause (b), excluding those levies that are 5.31 shifted for revenue recognition but are not included in the 5.32 computation of the adjustment to aids under section 124.155, 5.33 subdivision 1. 5.34 The result shall be rounded up to the nearest one-tenth of 5.35 a percent. However, in no case shall the levy recognition 5.36 percent be reduced below zero or increased above the current 6.1 levy recognition percent. 6.2 (c) The commissioner of finance must certify to the 6.3 commissioner of education the levy recognition percent computed 6.4 under this subdivision by January 5 of each year. The 6.5 commissioner of education must notify school districts of a 6.6 change in the levy recognition percent by January 15. 6.7 (d)For fiscal years 1994 and 1995,When the levy 6.8 recognition percent is increased or decreased as provided in 6.9 this subdivision, a special aid adjustment shall be made to each 6.10 school district with an operating referendum levy: 6.11 (i) When the levy recognition percent is increased from the 6.12 prior fiscal year, the commissioner of education shall calculate 6.13 the difference between (1) the amount of the levy under section 6.14 124A.03, that is recognized as revenue for the current fiscal 6.15 year according to subdivision 4a; and (2) the amount of the 6.16 levy, under section 124A.03, that would have been recognized as 6.17 revenue for the current fiscal year had the percentage according 6.18 to subdivision 4a, not been increased. The commissioner shall 6.19 reduce other aids due the district by the amount of the 6.20 difference. This aid reduction shall be in addition to the aid 6.21 reduction required because of the increase pursuant to this 6.22 subdivision of the levy recognition percent. 6.23 (ii) When the levy recognition percent is reducedas6.24provided in this subdivisionfrom the prior fiscal year, a 6.25 special adjustment payment shall be made to each school district 6.26 with an operating referendum levy that received an aid reduction 6.27under Laws 1991, chapter 265, article 1, section 31, or Laws6.281992, chapter 499, article 1, section 22when the levy 6.29 recognition percent was last increased. The special adjustment 6.30 payment shall be in addition to the additional payments required 6.31 because of the reduction pursuant to this subdivision of the 6.32 levy recognition percent. The amount of the special adjustment 6.33 payment shall be computed by the commissioner of education such 6.34 that any remaining portion of the aid reduction these districts 6.35 received that has not been repaid is repaid on a proportionate 6.36 basis as the levy recognition percent is reduced from 50 percent 7.1 to 31 percent. The special adjustment payment must be included 7.2 in the state aid payments to school districts according to the 7.3 schedule specified in section 124.195, subdivision 3.An7.4additional adjustment shall be made on June 30, 1995, for the7.5final payment otherwise due July 1, 1995, under Minnesota7.6Statutes 1992, section 136C.36.7.7 (e) The commissioner of finance shall transfer from the 7.8 general fund to the education aids appropriations specified by 7.9 the commissioner of education, the amounts needed to finance the 7.10 additional payments required because of the reduction pursuant 7.11 to this subdivision of the levy recognition percent. Payments 7.12 to a school district of additional state aids resulting from a 7.13 reduction in the levy recognition percent must be included in 7.14 the cash metering of payments made according to section 124.195 7.15 after January 15, and must be paid in a manner consistent with 7.16 the percent specified in that section. 7.17 Sec. 5. Minnesota Statutes 1994, section 122.532, 7.18 subdivision 3a, is amended to read: 7.19 Subd. 3a. [INTERIM CONTRACTUAL AGREEMENTS.] (a) Until a 7.20 successor contract is executed between the new school board and 7.21 the exclusive representative of the teachers of the new 7.22 district, the school boards of both districts and the exclusive 7.23 representatives of the teachers of both districts may agree: 7.24 (1) to comply with the contract of either district with 7.25 respect to all of the teachers assigned to the new district; or 7.26 (2) that each of the contracts shall apply to the teachers 7.27 previously subject to the respective contract. 7.28 (b) In the absence of an agreement according to paragraph 7.29 (a), the following shall apply: 7.30 (1) if the effective date is July 1 of an even-numbered 7.31 year, each of the contracts shall apply to the teachers 7.32 previously subject to the respective contract and shall be 7.33 binding on the new school board; or 7.34 (2) if the effective date is July 1 of an odd-numbered 7.35 year, the contract of the district that previously employed the 7.36 largest proportion of teachers assigned to the new district 8.1 applies to all of the teachers assigned to the new district and 8.2 shall be binding on the new school board. The application of 8.3 this section shall not result in a reduction in a teacher's 8.4 basic salary, payments for cocurricular or extracurricular 8.5 assignments, district contributions toward insurance coverages 8.6 or tax-sheltered annuities, leaves of absence, or severance pay 8.7 until a successor contract is executed between the new school 8.8 board and the exclusive representative. 8.9 Sec. 6. Minnesota Statutes 1994, section 124.06, is 8.10 amended to read: 8.11 124.06 [INSUFFICIENT FUNDS TO PAY ORDERS.] 8.12 (a) In the event that a district or a cooperative unit 8.13 defined in section 123.35, subdivision 19b, has insufficient 8.14 funds to pay its usual lawful current obligations, subject to 8.15 section 471.69, the board may enter into agreements with banks 8.16 or any person to take its ordersat any rate of interest not to8.17exceed six percent per annum. Any order drawn after having been 8.18 presented to the treasurer for payment and not paid for want of 8.19 funds shall be endorsed by the treasurer by putting on the back 8.20 thereof the words "not paid for want of funds," giving the date 8.21 of endorsement and signed by the treasurer. A record of such 8.22 presentment, nonpayment and endorsement shall be made by the 8.23 treasurer.Every such order shall bear interest at the rate of8.24not to exceed six percent per annum from the date of such8.25presentment.The treasurer shall serve a written notice upon 8.26 the payee or the payee's assignee, personally, or by mail, when 8.27 the treasurer is prepared to pay such orders; such notice may be 8.28 directed to the payee or the payee's assignee at the address 8.29 given in writing by such payee or assignee to such treasurer, at 8.30 any time prior to the service of such notice. No order shall 8.31 draw any interest if such address is not given when the same is 8.32 unknown to the treasurer, and no order shall draw any interest 8.33 after the service of such notice. 8.34 (b) A district may enter, subject to section 471.69, into a 8.35 line of credit agreement with a financial institution. The 8.36 amount of credit available must not exceed 95 percent of average 9.1 expenditure per month of operating expenditures in the previous 9.2 fiscal year. Any amount advanced must be repaid no later than 9.3 45 days after the day of advancement. 9.4 Sec. 7. Minnesota Statutes 1994, section 124.155, 9.5 subdivision 2, is amended to read: 9.6 Subd. 2. [ADJUSTMENT TO AIDS.] (a) The amount specified in 9.7 subdivision 1 shall be used to adjust the following state aids 9.8 and credits in the order listed: 9.9 (1) general education aid authorized in sections 124A.23 9.10 and 124B.20; 9.11 (2) secondary vocational aid authorized in section 124.573; 9.12 (3) special education aid authorized in section 124.32; 9.13 (4) secondary vocational aid for children with a disability 9.14 authorized in section 124.574; 9.15 (5) aid for pupils of limited English proficiency 9.16 authorized in section 124.273; 9.17 (6) transportation aid authorized in section 124.225; 9.18 (7) community education programs aid authorized in section 9.19 124.2713; 9.20 (8) adult education aid authorized in section 124.26; 9.21 (9) early childhood family education aid authorized in 9.22 section 124.2711; 9.23 (10) capital expenditure aid authorized in sections 9.24 124.243, 124.244, and 124.83; 9.25 (11) school district cooperation aid authorized in section 9.26 124.2727; 9.27 (12) assurance of mastery aid according to section 124.311; 9.28 (13) homestead and agricultural credit aid, disparity 9.29 credit and aid, and changes to credits for prior year 9.30 adjustments according to section 273.1398, subdivisions 2, 3, 4, 9.31 and 7; 9.32 (14) attached machinery aid authorized in section 273.138, 9.33 subdivision 3;and9.34 (15) alternative delivery aid authorized in section 9.35 124.322; 9.36 (16) special education equalization aid authorized in 10.1 section 124.321; 10.2 (17) special education excess cost aid authorized in 10.3 section 124.323; 10.4 (18) learning readiness aid authorized in section 124.2615; 10.5 (19) cooperation-combination aid authorized in section 10.6 124.2725; and 10.7 (20) district cooperation revenue aid authorized in section 10.8 124.2727. 10.9 (b) The commissioner of education shall schedule the timing 10.10 of the adjustments to state aids and credits specified in 10.11 subdivision 1, as close to the end of the fiscal year as 10.12 possible. 10.13 Sec. 8. Minnesota Statutes 1994, section 124.17, 10.14 subdivision 1, is amended to read: 10.15 Subdivision 1. [PUPIL UNIT.] Pupil units for each resident 10.16 pupil in average daily membership shall be counted according to 10.17 this subdivision. 10.18 (a) A prekindergarten pupil with a disability who is 10.19 enrolledfor the entire fiscal yearin a program approved by the 10.20 commissioner and has an individual education planthat requires10.21up to 437 hours of assessment and education services in the10.22fiscal year is counted as one-half of a pupil unit. If the plan10.23requires more than 437 hours of assessment and education10.24services, the pupilis counted as the ratio of the number of 10.25 hours of assessment and education service to875825 with a 10.26 minimum of 0.28, but not more than one. 10.27 (b)A prekindergarten pupil with a disability who is10.28enrolled for less than the entire fiscal year in a program10.29approved by the commissioner is counted as the greater of:10.30(1) one-half times the ratio of the number of instructional10.31days from the date the pupil is enrolled to the date the pupil10.32withdraws to the number of instructional days in the school10.33year; or10.34(2) the ratio of the number of hours of assessment and10.35education service required in the fiscal year by the pupil's10.36individual education program plan to 875, but not more than one.11.1(c)A prekindergarten pupil who is assessed but determined 11.2 not to be handicapped is counted as the ratio of the number of 11.3 hours of assessment service to875825. 11.4(d)(c) A kindergarten pupil with a disability who is 11.5 enrolled in a program approved by the commissioner is counted as 11.6 the ratio of the number of hours of assessment and education 11.7 services required in the fiscal year by the pupil's individual 11.8 education program plan to 875, but not more than one. 11.9(e)(d) A kindergarten pupil who is not included in 11.10 paragraph(d)(c) is counted as.515 of a pupil unit for fiscal11.11year 1994 and.53 of a pupil unit for fiscal year 1995 and 11.12 thereafter. 11.13(f)(e) A pupil who is in any of grades 1 to 6 is counted 11.14 as1.03 pupil units for fiscal year 1994 and1.06 pupil units 11.15 for fiscal year 1995 and thereafter. 11.16(g)(f) A pupil who is in any of grades 7 to 12 is counted 11.17 as 1.3 pupil units. 11.18(h)(g) A pupil who is in the post-secondary enrollment 11.19 options program is counted as 1.3 pupil units. 11.20 Sec. 9. Minnesota Statutes 1994, section 124.17, 11.21 subdivision 1d, is amended to read: 11.22 Subd. 1d. [AFDC PUPIL UNITS.] AFDC pupil units for fiscal 11.23 year 1993 and thereafter must be computed according to this 11.24 subdivision. 11.25 (a) The AFDC concentration percentage for a district equals 11.26 the product of 100 times the ratio of: 11.27 (1) the number of pupils enrolled in the district from 11.28 families receiving aid to families with dependent children 11.29 according to subdivision 1e; to 11.30 (2) the number of pupils in average daily membership 11.31 according to subdivision 1e enrolled in the district. 11.32 (b) The AFDC pupil weighting factor for a district equals 11.33 the lesser of one or the quotient obtained by dividing the 11.34 district's AFDC concentration percentage by 11.5. 11.35 (c) The AFDC pupil units for a district for fiscal year 11.36 1993 and thereafter equals the product of: 12.1 (1) the number of pupils enrolled in the district from 12.2 families receiving aid to families with dependent children 12.3 according to subdivision 1e; times 12.4 (2) the AFDC pupil weighting factor for the district; times 12.5 (3).65.67. 12.6 Sec. 10. Minnesota Statutes 1994, section 124.17, is 12.7 amended by adding a subdivision to read: 12.8 Subd. 1g. [FUND BALANCE PUPIL UNITS.] Fund balance pupil 12.9 units must be computed separately for kindergarten pupils, 12.10 elementary pupils in grades 1 to 6, and secondary pupils in 12.11 grades 7 to 12. Total fund balance pupil units means the sum of 12.12 kindergarten, elementary, and secondary fund balance pupil 12.13 units. Fund balance pupil units for each category means the 12.14 number of resident pupil units in average daily membership, 12.15 including shared time pupil units, according to section 124A.02, 12.16 subdivision 20, plus 12.17 (1) pupils attending the district for which general 12.18 education aid adjustments are made according to section 12.19 124A.036, subdivision 5; minus 12.20 (2) the sum of the resident pupils attending other 12.21 districts for which general education aid adjustments are made 12.22 according to section 124A.036, subdivision 5, plus pupils for 12.23 whom payment is made according to section 126.22, subdivision 8, 12.24 or 126.23. 12.25 Sec. 11. Minnesota Statutes 1994, section 124.17, 12.26 subdivision 2f, is amended to read: 12.27 Subd. 2f. [PSEO PUPILS.] The average daily membership for 12.28 astudentpupil participating in the post-secondary enrollment 12.29 options program equals the lesser of 12.30(1)(a) 1.00, or 12.31(2)(b) the greater of 12.32(i)(1) .12, or 12.33(ii)(2) the ratio of (i) the sum of the number of 12.34 instructional hours thestudentpupil is enrolled in the 12.35 secondary schoolto the product of the number of days required12.36in section 120.101, subdivision 5b, times the minimum length of13.1day required in Minnesota Rules, part 3500.1500, subpart13.21during quarters, trimesters, or semesters during which the 13.3 pupil participates in PSEO, and hours enrolled in the secondary 13.4 school during the remainder of the school year, to (ii) the 13.5 actual number of instructional days in the school year times the 13.6 length of day in the school. 13.7 Sec. 12. Minnesota Statutes 1994, section 124.195, is 13.8 amended by adding a subdivision to read: 13.9 Subd. 3c. [CASH FLOW WAIVER.] For any district exceeding 13.10 its expenditure limitations under section 121.917, and if 13.11 requested by the district, the commissioner of education, in 13.12 consultation with the commissioner of finance, and a school 13.13 district may negotiate a cash flow payment schedule under 13.14 subdivision 3 corresponding to the district's cash flow needs so 13.15 as to minimize the district's short-term borrowing needs. 13.16 Sec. 13. Minnesota Statutes 1994, section 124.195, 13.17 subdivision 10, is amended to read: 13.18 Subd. 10. [AID PAYMENT PERCENTAGE.] Except as provided in 13.19 subdivisions 8, 9, and 11, each fiscal year, all education aids 13.20 and credits in this chapter and chapters 121, 123, 124A, 124B, 13.21 125, 126, 134, and section 273.1392, shall be paid at 90 percent 13.22 for districts operating a program under section 121.585 for 13.23 grades 1 to 12 for all students in the district and 85 percent 13.24 for other districts of the estimated entitlement during the 13.25 fiscal year of the entitlement, unless a higher rate has been 13.26 established according to section 121.904, subdivision 4d. 13.27 Districts operating a program under section 121.585 for grades 1 13.28 to 12 for all students in the district shall receive 85 percent 13.29 of the estimated entitlement plus an additional amount of 13.30 general education aid equal to five percent of the estimated 13.31 entitlement. For all districts, the final adjustment payment, 13.32 according to subdivision 6, shall be the amount of the actual 13.33 entitlement, after adjustment for actual data, minus the 13.34 payments made during the fiscal year of the entitlementshall be13.35paid as the final adjustment payment according to subdivision 6. 13.36 Sec. 14. Minnesota Statutes 1994, section 124.195, is 14.1 amended by adding a subdivision to read: 14.2 Subd. 14. [EDUCATION AIDS CASH FLOW ACCOUNT.] (a) An 14.3 education aids cash flow account is established in the state 14.4 treasury for the purpose of ensuring the timely payment of state 14.5 aids or credits to school districts as provided in this 14.6 section. In the event the account balance in any appropriation 14.7 from the general fund to the department of education for 14.8 education aids or credits is insufficient to make the next 14.9 scheduled payment or payments, the commissioner of education is 14.10 authorized to transfer funds from the education aids cash flow 14.11 account to the accounts that are insufficient. 14.12 (b) For purposes of this subdivision, an account may have 14.13 an insufficient balance only as a result of some districts being 14.14 overpaid based on revised estimates for the relevant annual aid 14.15 or credit entitlements. When the overpayment amounts are 14.16 recovered from the pertinent districts, the commissioner of 14.17 education shall transfer those amounts to the education aids 14.18 cash flow account. The commissioner shall determine when it is 14.19 not feasible to recover the overpayments in a timely manner from 14.20 the district's future aid payments and notify the district of 14.21 the amount that is to be refunded to the state. School 14.22 districts are encouraged to make such refunds promptly. The 14.23 commissioner may approve a schedule for making a refund when a 14.24 district demonstrates that its cash flow is inadequate to 14.25 promptly make the refund in full. 14.26 (c) There is annually appropriated from the general fund to 14.27 the education aids cash flow account the additional amount 14.28 necessary to ensure the timely payment of state aids or credits 14.29 to school districts as provided in this section. For any fiscal 14.30 year, the appropriation authorized in this subdivision shall not 14.31 exceed an amount equal to two-tenths of one percent of the total 14.32 general fund appropriations in that year for education aids and 14.33 credits. At the close of each fiscal year, the amount of actual 14.34 transfers plus anticipated transfers required in paragraph (b) 14.35 shall equal the authorized amounts transferred in paragraph (a) 14.36 so that the net effect on total general fund spending for 15.1 education aids and credits is zero. 15.2 Sec. 15. Minnesota Statutes 1994, section 124.2139, is 15.3 amended to read: 15.4 124.2139 [REDUCTION OF PAYMENTS TO SCHOOL DISTRICTS.] 15.5 The commissioner of revenue shall reduce the sum of the 15.6 additional transition credit, homestead and agricultural credit 15.7 aid, and disparity reduction aid payments under section 273.1398 15.8 made to school districts by the product of: 15.9 (1) the district's fiscal year 1984 payroll for coordinated 15.10 plan members of the public employees retirement association 15.11 other than technical college employees, times 15.12 (2) the difference between the employer contribution rate 15.13 in effect prior to July 1, 1984, and the total employer 15.14 contribution rate in effect after June 30, 1984. 15.15 Sec. 16. Minnesota Statutes 1994, section 124.431, 15.16 subdivision 2, is amended to read: 15.17 Subd. 2. [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 15.18 school district or a joint powers district that intends to apply 15.19 for a capital loan must submit a proposal to the commissioner 15.20 for review and comment according to section 121.15 on or before 15.21 July 1. The commissioner must prepare a review and comment on 15.22 the proposed facility, regardless of the amount of the capital 15.23 expenditure required to construct the facility. In addition to 15.24 the information provided under section 121.15, subdivision 7, 15.25 the commissioner shall consider the following criteria in 15.26 determining whether to make a positive review and comment. 15.27 (a) To grant a positive review and comment the commissioner 15.28 must determine that all of the following conditions are met: 15.29 (1) the facilities are needed for pupils for whom no 15.30 adequate facilities exist or will exist; 15.31 (2) the district will serve, on average, at least 80 pupils 15.32 per grade or is eligible for elementary or secondary sparsity 15.33 revenue; 15.34 (3) no form of cooperation with another district would 15.35 provide the necessary facilities; 15.36 (4) the facilities are comparable in size and quality to 16.1 facilities recently constructed in other districts that have 16.2 similar enrollments; 16.3 (5) the facilities are comparable in size and quality to 16.4 facilities recently constructed in other districts that are 16.5 financed without a capital loan; 16.6 (6) the district is projected to maintain or increase its 16.7 average daily membership over the next five years or is eligible 16.8 for elementary or secondary sparsity revenue; 16.9 (7) the current facility poses a threat to the life, 16.10 health, and safety of pupils, and cannot reasonably be brought 16.11 into compliance with fire, health, or life safety codes; 16.12 (8) the district has made a good faith effort, as evidenced 16.13 by its maintenance expenditures, to adequately maintain the 16.14 existing facility during the previous ten years and to comply 16.15 with fire, health, and life safety codes and state and federal 16.16 requirements for handicapped accessibility; 16.17 (9) the district has made a good faith effort to encourage 16.18 integration of social service programs within the new facility; 16.19 and 16.20 (10) evaluations by school boards of adjacent districts 16.21 have been received. 16.22 (b) The commissioner may grant a negative review and 16.23 comment if: 16.24 (1) the state demographer has examined the population of 16.25 the communities to be served by the facility and determined that 16.26 the communities have not grown during the previous five years; 16.27 (2) the state demographer determines that the economic and 16.28 population bases of the communities to be served by the facility 16.29 are not likely to grow or to remain at a level sufficient, 16.30 during the next ten years, to ensure use of the entire facility; 16.31 (3) the need for facilities could be met within the 16.32 district or adjacent districts at a comparable cost by leasing, 16.33 repairing, remodeling, or sharing existing facilities or by 16.34 using temporary facilities; 16.35 (4) the district plans do not include cooperation and 16.36 collaboration with health and human services agencies and other 17.1 political subdivisions; or 17.2 (5) if the application is for new construction, an existing 17.3 facility that would meet the district's needs could be purchased 17.4 at a comparable cost from any other source within the area. 17.5 Sec. 17. Minnesota Statutes 1994, section 124.912, 17.6 subdivision 1, is amended to read: 17.7 Subdivision 1. [STATUTORY OBLIGATIONS.](a)A school 17.8 district may levy theamounts necessary to pay the district's17.9obligations under section 6.62; theamount authorized for 17.10 liabilities of dissolved districts pursuant to section 122.45; 17.11 the amounts necessary to pay the district's obligations under 17.12 section 268.06, subdivision 25; the amounts necessary to pay for 17.13 job placement services offered to employees who may become 17.14 eligible for benefits pursuant to section 268.08; the amounts 17.15 necessary to pay the district's obligations under section 17.16 127.05; the amounts authorized by section 122.531; the amounts 17.17 necessary to pay the district's obligations under section 17.18 122.533; and for severance pay required by sections 120.08, 17.19 subdivision 3, and 122.535, subdivision 6. 17.20 (b) An education district that negotiates a collective 17.21 bargaining agreement for teachers under section 122.937 may 17.22 certify to the department of education the amount necessary to 17.23 pay all of the member districts' obligations and the education 17.24 district's obligations under section 268.06, subdivision 25. 17.25 The department of education must allocate the levy amount 17.26 proportionately among the member districts based on adjusted net 17.27 tax capacity. The member districts must levy the amount 17.28 allocated. 17.29 (c) Each year, a member district of an education district 17.30 that levies under this subdivision must transfer the amount of 17.31 revenue certified under paragraph (b) to the education district 17.32 board according to this subdivision. By June 20 and November 30 17.33 of each year, an amount must be transferred equal to: 17.34 (1) 50 percent times 17.35 (2) the amount certified in paragraph (b) minus homestead 17.36 and agricultural credit aid allocated for that levy according to 18.1 section 273.1398, subdivision 6. 18.2 Sec. 18. Minnesota Statutes 1994, section 124.918, 18.3 subdivision 1, is amended to read: 18.4 Subdivision 1. [CERTIFY LEVY LIMITS.] By September18, 18.5 the commissioner shall notify the school districts of their levy 18.6 limits. The commissioner shall certify to the county auditors 18.7 the levy limits for all school districts headquartered in the 18.8 respective counties together with adjustments for errors in 18.9 levies not penalized pursuant to section 124.918, subdivision 3, 18.10 as well as adjustments to final pupil unit counts. A school 18.11 district may require the commissioner to review the 18.12 certification and to present evidence in support of modification 18.13 of the certification. 18.14 The county auditor shall reduce levies for any excess of 18.15 levies over levy limitations pursuant to section 275.16. Such 18.16 reduction in excess levies may, at the discretion of the school 18.17 district, be spread over two calendar years. 18.18 Sec. 19. Minnesota Statutes 1994, section 124.918, 18.19 subdivision 2, is amended to read: 18.20 Subd. 2. [NOTICE TO COMMISSIONER; FORMS.] By September 18.211530 of each year each district shall notify the commissioner 18.22 of education of the proposed levies in compliance with the levy 18.23 limitations of this chapter and chapters 124A, 124B, 136C, and 18.24 136D. By January 15 of each year each district shall notify the 18.25 commissioner of education of the final levies certified. The 18.26 commissioner of education shall prescribe the form of these 18.27 notifications and may request any additional information 18.28 necessary to compute certified levy amounts. 18.29 Sec. 20. Minnesota Statutes 1994, section 124A.03, 18.30 subdivision 1c, is amended to read: 18.31 Subd. 1c. [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 18.32 subdivision 1b, a district's referendum allowance must not 18.33 exceed the greater of: 18.34 (1) the district's referendum allowance for fiscal year 18.35 1994; or 18.36 (2) 25 percent of the formula allowance minus $300 for 19.1 fiscal year1995 and later1997 and later. 19.2 Sec. 21. Minnesota Statutes 1994, section 124A.03, 19.3 subdivision 1g, is amended to read: 19.4 Subd. 1g. [REFERENDUM EQUALIZATION LEVY.] (a) For fiscal 19.5 year 1996, a district's referendum equalization levy equals the 19.6 district's referendum equalization revenue times the lesser of 19.7 one or the ratio of the district's adjusted net tax capacity per 19.8 actual pupil unit to 100 percent of the equalizing factor as 19.9 defined in section 124A.02, subdivision 8. 19.10 (b) For fiscal year 1997 and thereafter, a district's 19.11 referendum equalization levy for a referendum levied against the 19.12 referendum market value of all taxable property as defined in 19.13 section 124A.02, subdivision 3b, equals the district's 19.14 referendum equalization revenue times the lesser of one or the 19.15 ratio of the district's referendum market value per actual pupil 19.16 unit to $476,000. 19.17 (c) For fiscal year 1997 and thereafter, a district's 19.18 referendum equalization levy for a referendum levied against the 19.19 net tax capacity of all taxable property equals the district's 19.20 referendum equalization revenue times the lesser of one or the 19.21 ratio of the district's adjusted net tax capacity per actual 19.22 pupil unit to 100 percent of the equalizing factor for that year. 19.23 Sec. 22. Minnesota Statutes 1994, section 124A.03, 19.24 subdivision 1h, is amended to read: 19.25 Subd. 1h. [REFERENDUM EQUALIZATION AID.] (a) A district's 19.26 referendum equalization aid equals the difference between its 19.27 referendum equalization revenue and levy. 19.28 (b)For fiscal year 1993, a district's referendum19.29equalization aid is equal to one-third of the amount calculated19.30in clause (a).19.31(c) For fiscal year 1994, a district's referendum19.32equalization aid is equal to two-thirds of the amount calculated19.33in clause (a).19.34(d)If a district's actual levy for referendum equalization 19.35 revenue is less than its maximum levy limit, aid shall be 19.36 proportionately reduced. 20.1 Sec. 23. Minnesota Statutes 1994, section 124A.03, 20.2 subdivision 2, is amended to read: 20.3 Subd. 2. [REFERENDUM REVENUE.] (a) The revenue authorized 20.4 by section 124A.22, subdivision 1, may be increased in the 20.5 amount approved by the voters of the district at a referendum 20.6 called for the purpose. The referendum may be called by the 20.7 school board or shall be called by the school board upon written 20.8 petition of qualified voters of the district. The referendum 20.9 shall be conductedduring theone or two calendaryearyears 20.10 before the increased levy authority, if approved, first becomes 20.11 payable. Only one election to approve an increase may be held 20.12 in a calendar year. Unless the referendum is conducted by mail 20.13 under paragraph (g), the referendum must be held on the first 20.14 Tuesday after the first Monday in November. The ballot shall 20.15 state the maximum amount of the increased revenue per actual 20.16 pupil unit, the estimated referendum tax rate as a percentage of 20.17 market value in the first year it is to be levied, and that the 20.18 revenue shall be used to finance school operations. The ballot 20.19 may state that existing referendum levy authority is expiring. 20.20 In this case, the ballot may also compare the proposed levy 20.21 authority to the existing expiring levy authority, and express 20.22 the proposed increase as the amount, if any, over the expiring 20.23 referendum levy authority. The ballot shall designate the 20.24 specific number of years, not to exceed ten, for which the 20.25 referendum authorization shall apply. The notice required under 20.26 section 275.60 may be modified to read, in cases of renewing 20.27 existing levies: 20.28 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 20.29 FOR A PROPERTY TAX INCREASE." 20.30 The ballot may contain a textual portion with the 20.31 information required in this subdivision and a question stating 20.32 substantially the following: 20.33 "Shall the increase in the revenue proposed by (petition 20.34 to) the board of ........., School District No. .., be approved?" 20.35 If approved, an amount equal to the approved revenue per 20.36 actual pupil unit times the actual pupil units for the school 21.1 year beginning in the year after the levy is certified shall be 21.2 authorized for certification for the number of years approved, 21.3 if applicable, or until revoked or reduced by the voters of the 21.4 district at a subsequent referendum. 21.5 (b) The school board shall prepare and deliver by first 21.6 class mail at least 15 days but no more than 30 days prior to 21.7 the day of the referendum to each taxpayer a notice of the 21.8 referendum and the proposed revenue increase. The school board 21.9 need not mail more than one notice to any taxpayer. For the 21.10 purpose of giving mailed notice under this subdivision, owners 21.11 shall be those shown to be owners on the records of the county 21.12 auditor or, in any county where tax statements are mailed by the 21.13 county treasurer, on the records of the county treasurer. Every 21.14 property owner whose name does not appear on the records of the 21.15 county auditor or the county treasurer shall be deemed to have 21.16 waived this mailed notice unless the owner has requested in 21.17 writing that the county auditor or county treasurer, as the case 21.18 may be, include the name on the records for this purpose. The 21.19 notice must project the anticipated amount of tax increase in 21.20 annual dollars and annual percentage for typical residential 21.21 homesteads, agricultural homesteads, apartments, and 21.22 commercial-industrial property within the school district. 21.23 The notice for a referendum may state that an existing 21.24 referendum levy is expiring and project the anticipated amount 21.25 of increase over the existing referendum levy, if any, in annual 21.26 dollars and annual percentage for typical residential 21.27 homesteads, agricultural homesteads, apartments, and 21.28 commercial-industrial property within the school district. 21.29 The notice must include the following statement: "Passage 21.30 of this referendum will result in an increase in your property 21.31 taxes." However, in cases of renewing existing levies, the 21.32 notice may include the following statement: "Passage of this 21.33 referendum may result in an increase in your property taxes." 21.34 (c) A referendum on the question of revoking or reducing 21.35 the increased revenue amount authorized pursuant to paragraph 21.36 (a) may be called by the school board and shall be called by the 22.1 school board upon the written petition of qualified voters of 22.2 the district. A referendum to revoke or reduce the levy amount 22.3 must be based upon the dollar amount, local tax rate, or amount 22.4 per actual pupil unit, that was stated to be the basis for the 22.5 initial authorization. Revenue approved by the voters of the 22.6 district pursuant to paragraph (a) must be received at least 22.7 once before it is subject to a referendum on its revocation or 22.8 reduction for subsequent years. Only one revocation or 22.9 reduction referendum may be held to revoke or reduce referendum 22.10 revenue for any specific year and for years thereafter. 22.11 (d) A petition authorized by paragraph (a) or (c) shall be 22.12 effective if signed by a number of qualified voters in excess of 22.13 15 percent of the registered voters of the school district on 22.14 the day the petition is filed with the school board. A 22.15 referendum invoked by petition shall be held on the date 22.16 specified in paragraph (a). 22.17 (e) The approval of 50 percent plus one of those voting on 22.18 the question is required to pass a referendum authorized by this 22.19 subdivision. 22.20 (f) At least 15 days prior to the day of the referendum, 22.21 the district shall submit a copy of the notice required under 22.22 paragraph (b) to the commissioner of education. Within 15 days 22.23 after the results of the referendum have been certified by the 22.24 school board, or in the case of a recount, the certification of 22.25 the results of the recount by the canvassing board, the district 22.26 shall notify the commissioner of education of the results of the 22.27 referendum. 22.28 (g) Except for a referendum held under subdivision 2b, any 22.29 referendum under this section held on a day other than the first 22.30 Tuesday after the first Monday in November must be conducted by 22.31 mail in accordance with section 204B.46. Notwithstanding 22.32 paragraph (b) to the contrary, in the case of a referendum 22.33 conducted by mail under this paragraph, the notice required by 22.34 paragraph (b) shall be prepared and delivered by first class 22.35 mail at least 20 days before the referendum. 22.36 Sec. 24. Minnesota Statutes 1994, section 124A.0311, 23.1 subdivision 4, is amended to read: 23.2 Subd. 4. [REFERENDUM.] The school board must prepare and 23.3 publish in the official legal newspaper of the school district a 23.4 notice of the public meeting on the district's intent to convert 23.5 any portion of its referendum levy to market value not less than 23.6 30 days before the scheduled date of the meeting. The 23.7 resolution converting a portion of the district's referendum 23.8 levy to referendum market value becomes final unless within 30 23.9 days after the meeting where the resolution was adopted a 23.10 petition requesting an election signed by a number ofpeople23.11residing in the district equal to 15 percent of the number of23.12people who voted in the last general election in the school23.13district is filed with the recording officerqualified voters in 23.14 excess of 15 percent of the registered voters of the school 23.15 district on the day the petition is filed with the school 23.16 board. If a petition is filed, then the school board resolution 23.17 has no effect and the amount of referendum revenue authority 23.18 specified in the resolution cancels for taxes payable in the 23.19 following year and thereafter. The school board shall schedule 23.20 a referendum under section 124A.03, subdivision 2. 23.21 Sec. 25. Minnesota Statutes 1994, section 124A.22, 23.22 subdivision 1, is amended to read: 23.23 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) For fiscal 23.24 year 1996, the general education revenue for each district 23.25 equals the sum of the district's basic revenue, compensatory 23.26 education revenue, training and experience revenue, secondary 23.27 sparsity revenue, elementary sparsity revenue, and supplemental 23.28 revenue. 23.29 (b) For fiscal year 1997 and thereafter, the general 23.30 education revenue for each district equals the sum of the 23.31 district's basic revenue, compensatory education revenue, 23.32 secondary sparsity revenue, elementary sparsity revenue, 23.33 transportation sparsity, total operating capital revenue, 23.34 transition revenue, and supplemental revenue. 23.35 Sec. 26. Minnesota Statutes 1994, section 124A.22, 23.36 subdivision 2, is amended to read: 24.1 Subd. 2. [BASIC REVENUE.] The basic revenue for each 24.2 district equals the formula allowance times the actual pupil 24.3 units for the school year. The formula allowance forfiscal24.4years 1993 and 1994 is $3,050. The formula allowance forfiscal 24.5 year 1995and subsequent fiscal yearsis $3,150. The formula 24.6 allowance for fiscal year 1996 is $3,205. The formula allowance 24.7 for fiscal year 1997 is $3,505 and for fiscal year 1998 and 24.8 subsequent fiscal years the formula allowance is $3,430. 24.9 Sec. 27. Minnesota Statutes 1994, section 124A.22, 24.10 subdivision 3, is amended to read: 24.11 Subd. 3. [COMPENSATORY EDUCATION REVENUE.](a) For fiscal24.12year 1992, the compensatory education revenue for each district24.13equals the formula allowance times the AFDC pupil units counted24.14according to section 124.17, subdivision 1b.24.15(b) For fiscal year 1993 and thereafter,Themaximum24.16 compensatory education revenue for each district equals the 24.17 formula allowance less $300 times the AFDC pupil units computed 24.18 according to section 124.17, subdivision 1d. 24.19(c) For fiscal year 1993 and thereafter, the previous24.20formula compensatory education revenue for each district equals24.21the formula allowance times the AFDC pupil units computed24.22according to section 124.17, subdivision 1b.24.23(d) For fiscal year 1993, the compensatory education24.24revenue for each district equals the district's previous formula24.25compensatory revenue plus one-fourth of the difference between24.26the district's maximum compensatory education revenue and the24.27district's previous formula compensatory education revenue.24.28(e) For fiscal year 1994, the compensatory education24.29revenue for each district equals the district's previous formula24.30compensatory education revenue plus one-half of the difference24.31between the district's maximum compensatory education revenue24.32and the district's previous formula compensatory education24.33revenue.24.34(f) For fiscal year 1995, the compensatory education24.35revenue for each district equals the district's previous formula24.36compensatory education revenue plus three-fourths of the25.1difference between the district's maximum compensatory education25.2revenue and the district's previous formula compensatory25.3education revenue.25.4(g) For fiscal year 1996 and thereafter, the compensatory25.5education revenue for each district equals the district's25.6maximum compensatory education revenue.25.7 Sec. 28. Minnesota Statutes 1994, section 124A.22, 25.8 subdivision 4, is amended to read: 25.9 Subd. 4. [TRAINING AND EXPERIENCE REVENUE.](a)The 25.10previous formula training and experience revenue for each25.11district equals the greater of zero or the result of the25.12following computation:25.13(1) subtract 1.6 from the training and experience index;25.14(2) multiply the result in clause (1) by the product of25.15$700 times the actual pupil units for the school year.25.16(b) The maximumtraining and experience revenue for each 25.17 district equals the greater of zero or the result of the 25.18 following computation: 25.19 (1) subtract .8 from the training and experience index; 25.20 (2) multiply the result in clause (1) by the product of 25.21 $660 times the actual pupil units for the school year. 25.22(c) For fiscal year 1994, the training and experience25.23revenue for each district equals the district's previous formula25.24training and experience revenue plus one-half of the difference25.25between the district's maximum training and experience revenue25.26and the district's previous formula training and experience25.27revenue.25.28(d) For fiscal year 1995, the training and experience25.29revenue for each district equals the district's previous formula25.30training and experience revenue plus three-fourths of the25.31difference between the district's maximum training and25.32experience revenue and the district's previous formula training25.33and experience revenue.25.34(e) For fiscal year 1996 and thereafter, the training and25.35experience revenue for each district equals the district's25.36maximum training and experience revenue.26.1 Sec. 29. Minnesota Statutes 1994, section 124A.22, 26.2 subdivision 4a, is amended to read: 26.3 Subd. 4a. [FISCAL YEAR 1996 TRAINING AND EXPERIENCE LEVY.] 26.4 A district's training and experience levy for fiscal year 1996 26.5 equals its training and experience revenue times the lesser of 26.6 one or the ratio of the district's adjusted net tax capacity per 26.7 actual pupil unit for the year before the year the levy is 26.8 certified to the equalizing factor for the school year to which 26.9 the levy is attributable. 26.10 Sec. 30. Minnesota Statutes 1994, section 124A.22, 26.11 subdivision 4b, is amended to read: 26.12 Subd. 4b. [FISCAL YEAR 1996 TRAINING AND EXPERIENCE AID.] 26.13 A district's training and experience aid for fiscal year 1996 26.14 equals its training and experience revenue minus its training 26.15 and experience levy times the ratio of the actual amount levied 26.16 to the permitted levy. 26.17 Sec. 31. Minnesota Statutes 1994, section 124A.22, 26.18 subdivision 6, is amended to read: 26.19 Subd. 6. [SECONDARY SPARSITY REVENUE.] (a) A district's 26.20 secondary sparsity revenue for a school year equals the sum of 26.21 the results of the following calculation for each qualifying 26.22 high school in the district: 26.23 (1) the formula allowance for the school year less $300, 26.24 multiplied by 26.25 (2) the secondary average daily membership of the high 26.26 school, multiplied by 26.27 (3) the quotient obtained by dividing 400 minus the 26.28 secondary average daily membership by 400 plus the secondary 26.29 daily membership, multiplied by 26.30 (4) the lesser of 1.5 or the quotient obtained by dividing 26.31 the isolation index minus 23 by ten. 26.32 (b) A newly formed school district that is the result of 26.33 districts combining under the cooperation and combination 26.34 program or consolidating under section 122.23 shall receive 26.35 secondary sparsity revenue equal to the greater of: (1) the 26.36 amount calculated under paragraph (a) for the combined district; 27.1 or (2) the sum of the amounts of secondary sparsity revenue the 27.2 former school districts had in the year prior to consolidation, 27.3 increased for any subsequent changes in the secondary sparsity 27.4 formula. 27.5 Sec. 32. Minnesota Statutes 1994, section 124A.22, 27.6 subdivision 6a, is amended to read: 27.7 Subd. 6a. [ELEMENTARY SPARSITY REVENUE.] A district's 27.8 elementary sparsity revenue equals the sum of the following 27.9 amounts for each qualifying elementary school in the district: 27.10 (1) the formula allowance for the year less $300, 27.11 multiplied by 27.12 (2) the elementary average daily membership of the school, 27.13 multiplied by 27.14 (3) the quotient obtained by dividing 140 minus the 27.15 elementary average daily membership by 140 plus the average 27.16 daily membership. 27.17 Sec. 33. Minnesota Statutes 1994, section 124A.22, 27.18 subdivision 8a, is amended to read: 27.19 Subd. 8a. [SUPPLEMENTAL LEVY.] To obtain supplemental 27.20 revenue, a district may levy an amount not more than the product 27.21 of its supplemental revenue for the school year times the lesser 27.22 of one or the ratio of its general education levy to its general 27.23 education revenue, excludingtraining and experiencetransition 27.24 revenue and supplemental revenue, for the same year. 27.25 Sec. 34. Minnesota Statutes 1994, section 124A.22, 27.26 subdivision 9, is amended to read: 27.27 Subd. 9. [SUPPLEMENTAL REVENUE REDUCTION.] A district's 27.28 supplemental revenue allowance is reduced by the sum of: 27.29 (1) the sum of one-fourth of the difference of: 27.30 (i) the sum of the district's training and experience 27.31 revenue and compensatory revenue per actual pupil unit forthat27.32 fiscal year 1996, and 27.33 (ii) the sum of district's training and experience revenue 27.34 and compensatory revenue per actual pupil unit for fiscal year 27.35 1994; and 27.36 (2)the difference between the formula allowance for the28.1current fiscal year and $3,050$100. 28.2 A district's supplemental revenue allowance may not be less 28.3 than zero. 28.4 Sec. 35. Minnesota Statutes 1994, section 124A.22, is 28.5 amended by adding a subdivision to read: 28.6 Subd. 10. [TOTAL OPERATING CAPITAL REVENUE.] (a) For 28.7 fiscal year 1997 and thereafter, total operating capital revenue 28.8 for a district equals the amount determined under paragraph (b), 28.9 (c), (d), (e), or (f), plus $68 times the actual pupil units for 28.10 the school year. The revenue must be placed in a reserved 28.11 account in the general fund and may only be used according to 28.12 subdivision 11. 28.13 (b) For fiscal years 1996 and later, capital revenue for a 28.14 district equals $100 times the district's maintenance cost index 28.15 times its actual pupil units for the school year. 28.16 (c) For 1996 and later fiscal years, the previous formula 28.17 revenue for a district equals $128 times its actual pupil units 28.18 for fiscal year 1995. 28.19 (d) Notwithstanding paragraph (b), for fiscal year 1996, 28.20 the revenue for each district equals 25 percent of the amount 28.21 determined in paragraph (b) plus 75 percent of the previous 28.22 formula revenue. 28.23 (e) Notwithstanding paragraph (b), for fiscal year 1997, 28.24 the revenue for each district equals 50 percent of the amount 28.25 determined in paragraph (b) plus 50 percent of the previous 28.26 formula revenue. 28.27 (f) Notwithstanding paragraph (b), for fiscal year 1998, 28.28 the revenue for each district equals 75 percent of the amount 28.29 determined in paragraph (b) plus 25 percent of the previous 28.30 formula revenue. 28.31 (g) The revenue in paragraph (b) for a district that 28.32 operates a program under section 121.585, is increased by an 28.33 amount equal to $15 times the number of actual pupil units at 28.34 the site where the program is implemented. 28.35 Sec. 36. Minnesota Statutes 1994, section 124A.22, is 28.36 amended by adding a subdivision to read: 29.1 Subd. 11. [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 29.2 operating capital revenue may be used only for the following 29.3 purposes: 29.4 (1) to acquire land for school purposes; 29.5 (2) to acquire or construct buildings for school purposes, 29.6 up to $400,000; 29.7 (3) to rent or lease buildings, including the costs of 29.8 building repair or improvement that are part of a lease 29.9 agreement; 29.10 (4) to improve and repair school sites and buildings, and 29.11 equip or reequip school buildings with permanent attached 29.12 fixtures; 29.13 (5) for a surplus school building that is used 29.14 substantially for a public nonschool purpose; 29.15 (6) to eliminate barriers or increase access to school 29.16 buildings by individuals with a disability; 29.17 (7) to bring school buildings into compliance with the 29.18 uniform fire code adopted according to chapter 299F; 29.19 (8) to remove asbestos from school buildings, encapsulate 29.20 asbestos, or make asbestos-related repairs; 29.21 (9) to clean up and dispose of polychlorinated biphenyls 29.22 found in school buildings; 29.23 (10) to clean up, remove, dispose of, and make repairs 29.24 related to storing heating fuel or transportation fuels such as 29.25 alcohol, gasoline, fuel oil, and special fuel, as defined in 29.26 section 296.01; 29.27 (11) for energy audits for school buildings and to modify 29.28 buildings if the audit indicates the cost of the modification 29.29 can be recovered within ten years; 29.30 (12) to improve buildings that are leased according to 29.31 section 123.36, subdivision 10; 29.32 (13) to pay special assessments levied against school 29.33 property but not to pay assessments for service charges; 29.34 (14) to pay principal and interest on state loans for 29.35 energy conservation according to section 216C.37 or loans made 29.36 under the northeast Minnesota economic protection trust fund act 30.1 according to sections 298.292 to 298.298; and 30.2 (15) to purchase or lease interactive telecommunications 30.3 equipment; 30.4 (16) by school board resolution, to transfer money into the 30.5 debt redemption fund to pay the amounts needed to meet, when 30.6 due, principal and interest payments on certain obligations 30.7 issued according to chapter 475; 30.8 (17) to pay capital expenditure equipment-related 30.9 assessments of any entity formed under a cooperative agreement 30.10 between two or more districts; 30.11 (18) to purchase or lease computers and related materials, 30.12 copying machines, telecommunications equipment, and other 30.13 noninstructional equipment; 30.14 (19) to purchase or lease assistive technology or equipment 30.15 for instructional programs; 30.16 (20) to purchase textbooks; 30.17 (21) to purchase new and replacement library books; 30.18 (22) to purchase vehicles; 30.19 (23) to purchase or lease telecommunications equipment, 30.20 computers, and related equipment for integrated information 30.21 management systems for: 30.22 (i) managing and reporting learner outcome information for 30.23 all students under a results-oriented graduation rule; 30.24 (ii) managing student assessment, services, and achievement 30.25 information required for students with individual education 30.26 plans; and 30.27 (iii) other classroom information management needs; and 30.28 (24) to pay personnel costs directly related to the 30.29 acquisition, operation, and maintenance of telecommunications 30.30 systems, computers, related equipment, and network and 30.31 applications software. 30.32 Sec. 37. Minnesota Statutes 1994, section 124A.22, is 30.33 amended by adding a subdivision to read: 30.34 Subd. 12. [MAINTENANCE COST INDEX.] (a) A district's 30.35 maintenance cost index is equal to the ratio of: 30.36 (1) the total weighted square footage for all eligible 31.1 district-owned facilities; and 31.2 (2) the total unweighted square footage of these facilities. 31.3 (b) The department shall determine a district's maintenance 31.4 cost index annually. Eligible district-owned facilities shall 31.5 include only instructional or administrative square footage 31.6 owned by the district. The commissioner of education may adjust 31.7 the age of a building or addition for major renovation projects. 31.8 (c) The square footage weighting factor for each original 31.9 building or addition equals the lesser of: 31.10 (1) one plus the ratio of the age in years to 100; or 31.11 (2) 1.5. 31.12 (d) The weighted square footage for each original building 31.13 or addition equals the product of the unweighted square footage 31.14 times the square footage weighting factor. 31.15 Sec. 38. Minnesota Statutes 1994, section 124A.22, is 31.16 amended by adding a subdivision to read: 31.17 Subd. 13. [TRANSPORTATION SPARSITY DEFINITIONS.] The 31.18 definitions in this subdivision apply to subdivisions 13a and 31.19 13b. 31.20 (a) "Sparsity index" for a school district means the 31.21 greater of .2 or the ratio of the square mile area of the school 31.22 district to the actual pupil units of the school district. 31.23 (b) "Density index" for a school district means the ratio 31.24 of the square mile area of the school district to the actual 31.25 pupil units of the school district. However, the density index 31.26 for a school district cannot be greater than .2 or less than 31.27 .005. 31.28 (c) "Fiscal year 1996 base allowance" for a school district 31.29 means the result of the following computation: 31.30 (1) sum the following amounts: 31.31 (i) the fiscal year 1996 regular transportation revenue for 31.32 the school district according to section 124.225, subdivision 31.33 7d, paragraph (a), excluding the revenue attributable nonpublic 31.34 school pupils and to pupils with disabilities receiving special 31.35 transportation services; plus 31.36 (ii) the fiscal year 1996 nonregular transportation revenue 32.1 for the school district according to section 124.225, 32.2 subdivision 7d, paragraph (b), excluding the revenue for 32.3 desegregation transportation according to section 124.225, 32.4 subdivision 1, paragraph (c), clause (4), and the revenue 32.5 attributable to nonpublic school pupils and to pupils with 32.6 disabilities receiving special transportation services or board 32.7 and lodging; plus 32.8 (iii) the fiscal year 1996 excess transportation levy for 32.9 the school district according to section 124.226, subdivision 5, 32.10 excluding the levy attributable to nonpublic school pupils; plus 32.11 (iv) the fiscal year 1996 late activity bus levy for the 32.12 school district according to section 124.226, subdivision 9, 32.13 excluding the levy attributable to nonpublic school pupils; plus 32.14 (v) an amount equal to one-third of the fiscal year 1996 32.15 bus depreciation for the school district according to section 32.16 124.225, subdivision 1, paragraph (b), clauses (2), (3), and (4). 32.17 (2) divide the result in paragraph (c), clause (1), by the 32.18 school districts 1995-1996 actual pupil units. 32.19 Sec. 39. Minnesota Statutes 1994, section 124A.22, is 32.20 amended by adding a subdivision to read: 32.21 Subd. 13a. [TRANSPORTATION SPARSITY REVENUE 32.22 ALLOWANCE.] (a) A district's transportation sparsity allowance 32.23 equals the greater of zero or the result of the following 32.24 computation: 32.25 (i) Multiply the formula allowance according to section 32.26 124A.22, subdivision 2, by .1469. 32.27 (ii) Multiply the result in clause (i) by the district's 32.28 sparsity index raised to the 26/100 power. 32.29 (iii) Multiply the result in clause (ii) by the district's 32.30 density index raised to the 13/100 power. 32.31 (iv) Multiply the formula allowance according to section 32.32 124A.22, subdivision 2, by .0485. 32.33 (v) Subtract the result in clause (iv) from the result in 32.34 clause (iii). 32.35 (b) Transportation sparsity revenue is equal to the 32.36 transportation sparsity allowance times the actual pupil units. 33.1 Sec. 40. Minnesota Statutes 1994, section 124A.22, is 33.2 amended by adding a subdivision to read: 33.3 Subd. 13b. [TRANSITION ALLOWANCE.] (a) A district's 33.4 transportation transition allowance for fiscal year 1997 equals 33.5 the result of the following computation: 33.6 (1) if the result in subdivision 13a, paragraph (a), clause 33.7 (iii), for fiscal year 1997 is less than the fiscal year 1996 33.8 base allowance, the transportation transition allowance equals 33.9 the fiscal year 1996 base allowance minus the result in section 33.10 124A.22, subdivision 13a, paragraph (a), clause (iii). 33.11 (2) if the result in subdivision 13a, paragraph (b), for 33.12 fiscal year 1997 is greater than the fiscal year 1996 base 33.13 allowance and less than 110 percent of the fiscal year 1996 base 33.14 allowance, the transportation transition allowance equals zero. 33.15 (3) if the result in subdivision 13a, paragraph (b), for 33.16 fiscal year 1997 is greater than 110 percent of the fiscal year 33.17 1996 base allowance, the transportation transition allowance 33.18 equals 110 percent of the fiscal year 1996 base allowance minus 33.19 the result in subdivision 13a, paragraph (a), clause (iii). 33.20 (b) For fiscal years 1997 and 1998, a district's training 33.21 and experience transition allowance is equal to the training and 33.22 experience revenue the district would have received under 33.23 Minnesota Statutes 1994, section 124A.22, subdivision 4, divided 33.24 by the actual pupil units for fiscal year 1997 minus $130. For 33.25 fiscal year 1999 and later, a district's training and experience 33.26 transition allowance equals zero. 33.27 If the training and experience transition allowance is less 33.28 than zero, the reduction shall be determined according to the 33.29 following schedule: 33.30 (i) for fiscal year 1997, the reduction is equal to .9 33.31 times the amount initially determined; 33.32 (ii) for fiscal year 1998, the reduction is equal to .75 33.33 times the amount initially determined; 33.34 (iii) for fiscal year 1999, the reduction is equal to .50 33.35 times the amount initially determined; 33.36 (iv) for fiscal year 2000, the reduction is equal to .25 34.1 times the amount initially determined; and 34.2 (v) for fiscal year 2001 and thereafter, the transition 34.3 allowance shall not be less than zero. 34.4 (c) A district's transition allowance for fiscal year 1997 34.5 and thereafter is equal to the sum of its transportation 34.6 transition allowance and its training and experience transition 34.7 allowance. 34.8 Sec. 41. Minnesota Statutes 1994, section 124A.22, is 34.9 amended by adding a subdivision to read: 34.10 Subd. 13c. [TRANSITION REVENUE ADJUSTMENT.] A district's 34.11 transition revenue adjustment equals the district's transition 34.12 allowance times the actual pupil units for the school year. 34.13 Sec. 42. Minnesota Statutes 1994, section 124A.22, is 34.14 amended by adding a subdivision to read: 34.15 Subd. 13d. [TRANSITION LEVY ADJUSTMENT.] A district's 34.16 general education levy shall be adjusted by an amount equal to 34.17 the district's transition revenue times the lesser of 1 or the 34.18 ratio of the district's general education levy to its general 34.19 education revenue, excluding transition revenue and supplemental 34.20 revenue. 34.21 Sec. 43. Minnesota Statutes 1994, section 124A.22, is 34.22 amended by adding a subdivision to read: 34.23 Subd. 13e. [TRANSITION AID ADJUSTMENT.] A district's 34.24 transition aid adjustment is the difference between the 34.25 transition revenue and the transition levy. 34.26 Sec. 44. Minnesota Statutes 1994, section 124A.22, is 34.27 amended by adding a subdivision to read: 34.28 Subd. 13f. [TRAINING AND EXPERIENCE REVENUE.] Training and 34.29 experience revenue for each district equals the greater of zero 34.30 or the result of the following computation: 34.31 (1) subtract .8 from the training and experience index; 34.32 (2) multiply the result in clause (1) by the product of 34.33 $660 times the actual pupil units for that school year. 34.34 Sec. 45. Minnesota Statutes 1994, section 124A.225, 34.35 subdivision 1, is amended to read: 34.36 Subdivision 1. [REVENUE.] Of a district's general 35.1 education revenue an amount equal to the sum of the number of 35.2 elementary fund balance pupils in average daily membership 35.3 defined in section 124.17, subdivision1, clause (f)1h, and 35.4 one-half of the number of kindergarten fund balance pupils in 35.5 average daily membership as defined in section 124.17, 35.6 subdivision1, clause (e)1h, times.03.06 for fiscal year 35.719941995 and.06 for fiscal year 1995 andthereafter times the 35.8 formula allowance must be reserved according to this section. 35.9 Sec. 46. Minnesota Statutes 1994, section 124A.23, 35.10 subdivision 1, is amended to read: 35.11 Subdivision 1. [GENERAL EDUCATION TAX RATE.] The 35.12 commissioner shall establish the general education tax rate by 35.13 July 1 of each year for levies payable in the following year. 35.14 The general education tax capacity rate shall be a rate, rounded 35.15 up to the nearest tenth of a percent, that, when applied to the 35.16 adjusted net tax capacity for all districts, raises the amount 35.17 specified in this subdivision. The general education tax rate 35.18 shall be the rate that raises$1,044,000,000 for fiscal year35.191995 and$1,054,000,000 for fiscal year 1996 and $1,359,000,000 35.20 for fiscal year 1997 and later fiscal years. The general 35.21 education tax rate may not be changed due to changes or 35.22 corrections made to a district's adjusted net tax capacity after 35.23 the tax rate has been established. 35.24 Sec. 47. Minnesota Statutes 1994, section 124A.23, 35.25 subdivision 4, is amended to read: 35.26 Subd. 4. [GENERAL EDUCATION AID.] A district's general 35.27 education aid is the sum of the following amounts: 35.28 (1) the product of (i) the difference between the general 35.29 education revenue,excluding training and experiencetransition 35.30 revenue and supplemental revenue, and the general education 35.31 levy, times (ii) the ratio of the actual amount levied to the 35.32 permitted levy; 35.33 (2)training and experiencetransition aid according to 35.34 section 124A.22, subdivision4b13e; 35.35(3)supplemental aid according to section 124.214, 35.36 subdivision 2; 36.1(4)(3) shared time aid according to section 124A.02, 36.2 subdivision 21; and 36.3(5)(4) referendum aid according to section 124A.03. 36.4 Sec. 48. Minnesota Statutes 1994, section 124A.24, is 36.5 amended to read: 36.6 124A.24 [GENERAL EDUCATION LEVY EQUITY.] 36.7 If a district's general education levy is determined 36.8 according to section 124A.23, subdivision 3, an amount must be 36.9 deducted from state aid authorized in this chapter and chapters 36.10 124 and 124B, receivable for the same school year, and from 36.11 other state payments receivable for the same school year 36.12 authorized in chapter 273. The aid in section 124.646 must not 36.13 be reduced. 36.14 The amount of the deduction equals the difference between: 36.15 (1) the general education tax rate, according to section 36.16 124A.23, times the district's adjusted net tax capacity used to 36.17 determine the general education aid for the same school year; 36.18 and 36.19 (2) the district's general education revenue, excluding 36.20training and experiencetransition revenue and supplemental 36.21 revenue, for the same school year, according to section 124A.22. 36.22 Sec. 49. Minnesota Statutes 1994, section 124A.29, 36.23 subdivision 1, is amended to read: 36.24 Subdivision 1. [STAFF DEVELOPMENT AND PARENTAL INVOLVEMENT 36.25 REVENUE.](a) Of a district's basic revenue under section36.26124A.22, subdivision 2, an amount equal to one percent in fiscal36.27year 1994, two percent in fiscal year 1995, and 2.5 percent in36.28fiscal year 1996 and thereafter times the formula allowance36.29times the number of actual pupil units shall be reserved and may36.30be used onlyA district is encouraged to reserve general 36.31 education revenue for in-service education for programs under 36.32 section 126.77, subdivision 2,orfor staff development plans, 36.33 including plans for challenging instructional activities and 36.34 experiences under section 126.70, and for curriculum development 36.35 and programs, other in-service education, teachers' workshops, 36.36 teacher conferences, the cost of substitute teachers staff 37.1 development purposes, and other related costs for staff 37.2 development efforts. Districts may expend an additional amount 37.3 of basic revenue for staff development based on their needs. 37.4 The school board shall initially allocate 50 percent of the 37.5 revenue to each school site in the district on a per teacher 37.6 basis, which shall be retained by the school site until used. 37.7 The board may retain 25 percent to be used for district wide 37.8 staff development efforts. The remaining 25 percent of the 37.9 revenue shall be used to make grants to school sites that 37.10 demonstrate exemplary use of allocated staff development 37.11 revenue. A grant may be used for any purpose authorized under 37.12 section 126.70or, 126.77, subdivision 2, or for the costs of 37.13 curriculum development and programs, other in-service education, 37.14 teachers' workshops, teacher conferences, substitute teachers 37.15 for staff development purposes, and other staff development 37.16 efforts, and determined by the site decision-making team. The 37.17 site decision-making team must demonstrate to the school board 37.18 the extent to which staff at the site have met the outcomes of 37.19 the program. The board may withhold a portion of initial 37.20 allocation of revenue if the staff development outcomes are not 37.21 being met. 37.22(b) Of a district's basic revenue under section 124A.22,37.23subdivision 2, an amount equal to $5 times the number of actual37.24pupil units must be reserved and may be used only to provide37.25parental involvement programs that implement section 126.69.37.26Parental involvement programs may include career teacher37.27programs, programs promoting parental involvement in the PER37.28process, coordination of volunteer services, participation in37.29developing, implementing, or evaluating school37.30desegregation/integration plans, and programs designed to37.31encourage community involvement.37.32 Sec. 50. Minnesota Statutes 1994, section 124C.60, 37.33 subdivision 1, is amended to read: 37.34 Subdivision 1. [ELIGIBILITY.] Two or more districts that 37.35 have consolidated under section 122.23 or combined under 37.36 sections 122.241 to 122.248, are eligible for a capital 38.1 facilities grant of up to$100,000$200,000 for fiscal year 1995 38.2 and $100,000 thereafter under this section. To qualify the 38.3 following criteria must be met: 38.4 (1) the proposed facility changes are part of the plan 38.5 according to section 122.242, subdivision 10, or the plan 38.6 adopted by the reorganized district according to section 38.7 124.243, subdivision 1; 38.8 (2) the changes proposed to a facility must be needed to 38.9 accommodate changes in the educational program due to the 38.10 reorganization; 38.11 (3) the utilization of the facility for educational 38.12 programs is at least 85 percent of capacity; and 38.13 (4) the grant will be used only to remodel or improve 38.14 existing facilities. 38.15 Sec. 51. Minnesota Statutes 1994, section 126.22, 38.16 subdivision 2, is amended to read: 38.17 Subd. 2. [ELIGIBLE PUPILS.] The following pupils are 38.18 eligible to participate in the high school graduation incentives 38.19 program: 38.20 (a) any pupil who is between the ages of 12 and 21, or who 38.21 is an elementary pupil, and in either case, who: 38.22 (1) is at least two grade levels below the performance 38.23 level for pupils of the same age in a locally determined 38.24 achievement test; or 38.25 (2) is at least one year behind in satisfactorily 38.26 completing coursework or obtaining credits for graduation; or 38.27 (3) is pregnant or is a parent; or 38.28 (4) has been assessed as chemically dependent; or 38.29 (5) has been excluded or expelled according to sections 38.30 127.26 to 127.39; or 38.31 (6) has been referred by a school district for enrollment 38.32 in an eligible program or a program pursuant to section 126.23; 38.33 or 38.34 (7) is a victim of physical or sexual abuse; or 38.35 (8) has experienced mental health problems; or 38.36 (9) has experienced homelessness sometime within six months 39.1 before requesting a transfer to an eligible program; or 39.2 (10) speaks English as a second language or has limited 39.3 English proficiency; or 39.4 (b) any person who is at least 21 years of age and who: 39.5 (1) has received fewer than 14 years of public or nonpublic 39.6 education, beginning at age 5; 39.7 (2) has not completed the requirements for a high school 39.8 diploma; and 39.9 (3) at the time of application, (i) is eligible for 39.10 reemployment insurance benefits or has exhausted the benefits, 39.11 (ii) is eligible for, or is receiving income maintenance and 39.12 support services, as defined in section 268.0111, subdivision 5, 39.13 or (iii) is eligible for services under the displaced homemaker 39.14 program, state wage-subsidy program, or any programs under the 39.15 federal Jobs Training Partnership Act or its successor. 39.16 Sec. 52. Minnesota Statutes 1994, section 275.065, 39.17 subdivision 1, is amended to read: 39.18 Subdivision 1. [PROPOSED LEVY.] (a) Notwithstanding any 39.19 law or charter to the contrary, on or before September 15, each 39.20 taxing authority, other than a school district, shall adopt a 39.21 proposed budget andeach taxing authorityshall certify to the 39.22 county auditor the proposed or, in the case of a town, the final 39.23 property tax levy for taxes payable in the following year. 39.24 (b) On or before September 30, each school district shall 39.25 certify to the county auditor the proposed property tax levy for 39.26 taxes payable in the following year. The school district may 39.27 certify the proposed levy as: 39.28 (1) a specific dollar amount; or 39.29 (2) an amount equal to the maximum levy limitation 39.30 certified by the commissioner of education to the county auditor 39.31 according to section 124.918, subdivision 1. 39.32 (c) If the board of estimate and taxation or any similar 39.33 board that establishes maximum tax levies for taxing 39.34 jurisdictions within a first class city certifies the maximum 39.35 property tax levies for funds under its jurisdiction by charter 39.36 to the county auditor by September 15, the city shall be deemed 40.1 to have certified its levies for those taxing jurisdictions. 40.2 (d) For purposes of this section, "taxing authority" 40.3 includes all home rule and statutory cities, towns, counties, 40.4 school districts, and special taxing districts as defined in 40.5 section 275.066. Intermediate school districts that levy a tax 40.6 under chapter 124 or 136D, joint powers boards established under 40.7 sections 124.491 to 124.495, and common school districts No. 40.8 323, Franconia, and No. 815, Prinsburg, are also special taxing 40.9 districts for purposes of this section. 40.10 Sec. 53. Minnesota Statutes 1994, section 275.60, is 40.11 amended to read: 40.12 275.60 [LEVY OR BOND REFERENDUM; BALLOT NOTICE.] 40.13 Notwithstanding any general or special law or any charter 40.14 provisions, but subject to section 124A.03, subdivision 2, any 40.15 question submitted to the voters by any local governmental 40.16 subdivision at a general or special election after the day of 40.17 final enactment, authorizing a property tax levy or tax rate 40.18 increase, including the issuance of debt obligations payable in 40.19 whole or in part from property taxes, must include on the ballot 40.20 the following notice in boldface type. 40.21 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING 40.22 FOR A PROPERTY TAX INCREASE." 40.23 For purposes of this section and section 275.61, "local 40.24 governmental subdivision" includes counties, home rule and 40.25 statutory cities, towns, school districts, and all special 40.26 taxing districts. This statement is in addition to any general 40.27 or special laws or any charter provisions that govern the 40.28 contents of a ballot question. 40.29 This section does not apply to a school district bond 40.30 election if the debt service payments are to be made entirely 40.31 from transfers of revenue from the capital fund to the debt 40.32 service fund. 40.33 Sec. 54. Minnesota Statutes 1994, section 469.1831, 40.34 subdivision 4, is amended to read: 40.35 Subd. 4. [PROGRAM MONEY; DISTRIBUTION AND RESTRICTIONS.] 40.36 (a) Neighborhood revitalization program money may only be 41.1 expended in accordance with the program for a purpose listed in 41.2 subdivision 3 or this subdivision. Program money may not be 41.3 used in those project areas of the city where the city 41.4 determines that private investment will be sufficient to provide 41.5 for development and redevelopment of the project area without 41.6 public sector assistance, except in cases where program money is 41.7 being used to remove or rehabilitate structurally substandard or 41.8 obsolete buildings. Revenues derived from tax increments may 41.9 only be expended for the purposes otherwise permitted by law, 41.10 except that notwithstanding any law to the contrary, the city 41.11 must pay at least the following amount of program money, 41.12 including revenues derived from tax increments: (1) 15 percent 41.13 to the school district, (2) 7.5 percent to the county, and (3) 41.14 7.5 percent for social services. Payment must be made to the 41.15 county and school district within 15 days after the city 41.16 receives the distribution of increment revenues, provided that 41.17 the payment for calendar year 1990 may be made at any time 41.18 during the year. Payment to the county for social services 41.19 delivery shall be paid only after approval of program and 41.20 spending plans under paragraph (b). Payment to the school 41.21 district for education programs and services shall be paid only 41.22 after approval of program and spending plans under paragraph (b). 41.23 (b) The money distributed to the county in a calendar year 41.24 must be deducted from the county's levy limit for the following 41.25 calendar year. In calculating the county's levy limit base for 41.26 later years, the amount deducted must be treated as a local 41.27 government aid payment. 41.28 The city must notify the commissioner of education of the 41.29 amount of the payment made to the school district for the year. 41.30 The commissioner shall deduct from the school district's state 41.31 education aid payments one-half of the amount received by the 41.32 school district. 41.33 The program money paid to the school district by the city 41.34 less any amount of state aid deducted by the commissioner must 41.35 be expended for additional education programs and services in 41.36 accordance with the program. The amounts expended by the school 42.1 district may not replace existing services. 42.2 The money for social services must be paid to the county 42.3 for the cost of the provision of social services under the plan, 42.4 as approved by the policy board and the county board. 42.5 (c) The city must expend on housing programs and related 42.6 purposes as provided by the program at least 75 percent of the 42.7 program money, after deducting the payments to the school 42.8 district and county. 42.9 (d) Notwithstanding any other provisions of law to the 42.10 contrary, for a city of the first class qualifying under section 42.11 469.1781, paragraph (a), program money and money described in 42.12 Laws 1990, chapter 604, article 7, section 29, as amended, may 42.13 be expended anywhere within the city by the authority for a 42.14 purpose permitted by this section for any political subdivision 42.15 without compliance with section 469.175, subdivision 4, and such 42.16 money shall be deemed to be expended for a purpose that is a 42.17 permitted project under section 469.176 and for a purpose that 42.18 is permitted under section 469.176 for the district from which 42.19 the increment was received. 42.20 Sec. 55. Laws 1994, chapter 647, article 1, section 36, is 42.21 amended to read: 42.22 Sec. 36. [PEQUOT LAKES;DELAY INFORGIVENESS OF AID 42.23 REPAYMENT.] 42.24 The department of education mustallow independent school42.25district No. 186, Pequot Lakes, to repay over a five-year period42.26 forgive state aid overpayments of $196,000 for fiscal years 1991 42.27 and 1992 due to the property tax revenue recognition 42.28 shift attributable to independent school district No. 186, 42.29 Pequot Lakes.Notwithstanding Minnesota Statutes, section42.30124.155, subdivision 1, aids for independent school district No.42.31186, Pequot Lakes, shall not be adjusted for fiscal years 199142.32and 1992 for pupils transferring into the district under42.33Minnesota Statutes, section 120.062.42.34 Sec. 56. [SUPPLEMENTAL REVENUE REDUCTION.] 42.35 For fiscal years 1996 and 1997, if a district's ratio of 42.36 1992 adjusted net tax capacity divided by 1994-1995 actual pupil 43.1 units to $9,025 is less than or equal to .25, then the 43.2 difference under Minnesota Statutes, section 124A.22, 43.3 subdivision 9, clause (2), is equal to $25 for purposes of 43.4 computing the district's supplemental revenue under Minnesota 43.5 Statutes, section 124A.22, subdivision 8. For purposes of 43.6 computing the referendum allowance reduction under Minnesota 43.7 Statutes, section 124A.03, subdivision 3b, the supplemental 43.8 revenue reduction shall be computed according to Minnesota 43.9 Statutes, section 124A.22, subdivision 9. 43.10 Sec. 57. [PERMANENT SCHOOL FUND EARNINGS.] 43.11 During either fiscal year 1996 or 1997, notwithstanding 43.12 section 124.09, the state board of investment may invest in 43.13 equities an amount of principal in excess of the principal 43.14 necessary to generate $32,500,000 with the goal of improving the 43.15 long-term income from the permanent school fund. 43.16 Sec. 58. [LEVY ADJUSTMENT; LE SUEUR-HENDERSON.] 43.17 Independent school district No. 2397, Le Sueur-Henderson, 43.18 must not receive a negative levy adjustment for any referendum 43.19 levy made by independent school district No. 734, Henderson, 43.20 that was certified for taxes payable in 1992. 43.21 Sec. 59. [NO AID REDUCTION.] 43.22 The commissioner of education shall not reduce aid to a 43.23 district under Minnesota Statutes, section 124.14, subdivision 43.24 3, for the 1992-1993 school year because the district did not 43.25 provide the number of instructional days provided for in 43.26 Minnesota Statutes 1992, section 120.101, as long as the 43.27 district provided at least the minimum instructional hours 43.28 required by the rules of the state board of education during the 43.29 1992-1993 school year. 43.30 Sec. 60. [EQUALIZING FACTOR.] 43.31 For fiscal year 1996 only, levies calculated under chapters 43.32 124 and 124A shall not be recomputed because of an increase in 43.33 the formula allowance under Minnesota Statutes, section 124A.22, 43.34 subdivision 2. 43.35 Sec. 61. [FORMULA ALLOWANCE.] 43.36 Notwithstanding the amount of the formula allowance for 44.1 fiscal year 1997, in Minnesota Statutes, section 124A.22, 44.2 subdivision 2, the commissioner shall use the amount of the 44.3 formula allowance minus $300 for fiscal year 1997 in determining 44.4 the payments under Minnesota Statutes, sections 123.3514, 44.5 subdivisions 6 and 8; 124A.02, subdivision 21; 126.22; and 44.6 126.23. 44.7 Sec. 62. [APPROPRIATIONS.] 44.8 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 44.9 indicated in this section are appropriated from the general fund 44.10 to the department of education for the fiscal years designated. 44.11 Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 44.12 general and supplemental education aid: 44.13 $1,992,244,000 ..... 1996 44.14 $2,370,053,000 ..... 1997 44.15 The 1996 appropriation includes $301,965,000 for 1995 and 44.16 $1,690,280,000 for 1996. 44.17 The 1997 appropriation includes $325,496,000 for 1996 and 44.18 $2,044,557,000 for 1997. 44.19 Sec. 63. [REPEALER.] 44.20 Subdivision 1. [JULY 1, 1995.] Minnesota Statutes 1994, 44.21 sections 124.17, subdivision 1b; 124.962; 124A.04, subdivision 44.22 1; and 124A.27, subdivision 11, are repealed July 1, 1995. 44.23 Subd. 2. [REVENUE FOR FISCAL YEAR 1997.] Minnesota 44.24 Statutes 1994, sections 121.912, subdivision 8; 124.243; 44.25 124.244; 124A.26; and 126.019, are repealed effective for 44.26 revenue for fiscal year 1997. 44.27 Sec. 64. [EFFECTIVE DATE.] 44.28 Sections 14 and 50 are effective the day following final 44.29 enactment. Sections 9, 20, 27, 31, 32, 33, 47, and 48 are 44.30 effective for revenue for fiscal year 1997. Section 44 is 44.31 effective for revenue for fiscal year 1999 and thereafter. 44.32 ARTICLE 2 44.33 TRANSPORTATION 44.34 Section 1. Minnesota Statutes 1994, section 121.912, 44.35 subdivision 1, is amended to read: 44.36 Subdivision 1. [LIMITATIONS.] Except as provided in this 45.1 subdivision, sections 121.9121, 123.36, 124.243, 475.61, and 45.2 475.65, a school district may not permanently transfer money 45.3 from (1) an operating fund to a nonoperating fund; (2) a 45.4 nonoperating fund to another nonoperating fund; or (3) a 45.5 nonoperating fund to an operating fund. Permanent transfers may 45.6 be made from any fund to any other fund to correct for prior 45.7 fiscal years' errors discovered after the books have been closed 45.8 for that year. Permanent transfers may be made from the general 45.9 fund to any other operating funds according to section 123.7045 45.10 or if the resources of the other fund are not adequate to 45.11 finance approved expenditures from that other fund. Permanent 45.12 transfers may also be made from the general fund to eliminate 45.13 deficits in another fund when that other fund is being 45.14 discontinued. When a district discontinues operation of a 45.15 district-owned bus fleet or a substantial portion of a fleet, 45.16permanent transfers must be made, on June 30 of the fiscal year45.17that the operation is discontinued, from the fund balance45.18account entitled "pupil transportation fund reserved for bus45.19purchases" to the capital expenditure fund. The sum of the45.20levies authorized pursuant to sections 124.243, 124.244, and45.21124.83 shall be reduced by an amount equal to the amount45.22transferred. Any school district may transfer any amount from45.23the undesignated fund balance account in its transportation fund45.24to any other operating fund or to the reserved fund balance45.25account for bus purchases in its transportation fundthe balance 45.26 shall cancel to the district's general fund. 45.27 Sec. 2. Minnesota Statutes 1994, section 123.3514, 45.28 subdivision 8, is amended to read: 45.29 Subd. 8. [TRANSPORTATION.] A parent or guardian of a pupil 45.30 enrolled in a course for secondary credit may apply to the 45.31 pupil's district of residence for reimbursement for transporting 45.32 the pupil between the secondary school in which the pupil is 45.33 enrolled or the pupil's home and the post-secondary institution 45.34 that the pupil attends. The commissioner shall establish 45.35 guidelines for providing state aid to districts to reimburse the 45.36 parent or guardian for the necessary transportation costs, which 46.1 shall be based on financial need. The reimbursement may not 46.2 exceed the pupil's actual cost of transportation or 15 cents per 46.3 mile traveled, whichever is less. Reimbursement may not be paid 46.4 for more than 250 miles per week. However, if the nearest 46.5 post-secondary institution is more than 25 miles from the 46.6 pupil's resident secondary school, the weekly reimbursement may 46.7 not exceed the reimbursement rate per mile times the actual 46.8 distance between the secondary school or the pupil's home and 46.9 the nearest post-secondary institution times ten. The state 46.10 shall pay aid to the district according to the guidelines 46.11 established under this subdivision. Chapter 14 does not apply 46.12 to the guidelines. 46.13 Sec. 3. Minnesota Statutes 1994, section 123.39, 46.14 subdivision 1, is amended to read: 46.15 Subdivision 1. The board may provide for the 46.16 transportation of pupils to and from school and for any other 46.17 purposefor which aid is authorized under section 124.223 or for46.18which levies are authorized under sections 124.226, 124.2716,46.19124.91, 124.912, 124.914, 124.916, 124.918, and 136C.411. The 46.20 board may also provide for the transportation of pupils to 46.21 schools in other districts for grades and departments not 46.22 maintained in the district, including high school, at the 46.23 expense of the district, when funds are available therefor and 46.24 if agreeable to the district to which it is proposed to 46.25 transport the pupils, for the whole or a part of the school 46.26 year, as it may deem advisable, and subject to its rules. In 46.27 any school district, the board shall arrange for the attendance 46.28 of all pupils living two miles or more from the school, except 46.29 pupils whose transportation privileges have been revoked under 46.30 section 123.805, subdivision 1, clause (6), or 123.7991, 46.31 paragraph (b), through suitable provision for transportation or 46.32 through the boarding and rooming of the pupils who may be more 46.33 economically and conveniently provided for by that means. The 46.34 board shall provide transportation to and from the home of a 46.35 child with a disability not yet enrolled in kindergarten when 46.36 special instruction and services under sections 120.17 and 47.1 120.1701 are provided in a location other than in the child's 47.2 home. When transportation is provided, scheduling of routes, 47.3 establishment of the location of bus stops, manner and method of 47.4 transportation, control and discipline of school children and 47.5 any other matter relating thereto shall be within the sole 47.6 discretion, control, and management of the school board. The 47.7 district may provide for the transportation of pupils or expend 47.8 a reasonable amount for room and board of pupils whose 47.9 attendance at school can more economically and conveniently be 47.10 provided for by that means or who attend school in a building 47.11 rented or leased by a district within the confines of an 47.12 adjacent district. 47.13 Sec. 4. Minnesota Statutes 1994, section 123.78, 47.14 subdivision 1, is amended to read: 47.15 Subdivision 1. [GENERAL PROVISIONS.] A districteligible47.16to receive state aid for transportation under chapter 124shall 47.17 provide equal transportation within the district for all school 47.18 children to any school when transportation is deemed necessary 47.19 by the school board because of distance or traffic condition in 47.20 like manner and form as provided in sections 123.39 and 124.223, 47.21 when applicable. 47.22 Sec. 5. Minnesota Statutes 1994, section 123.79, 47.23 subdivision 1, is amended to read: 47.24 Subdivision 1. Such state aids asmay becomeare made 47.25 available or appropriated shall begoverned by section 124.225,47.26be paid to the school district entitled theretofor the equal 47.27 benefit of all school children, and be disbursed in such manner 47.28 as determined by the board. 47.29 Sec. 6. Minnesota Statutes 1994, section 123.7991, 47.30 subdivision 2, is amended to read: 47.31 Subd. 2. [STUDENT TRAINING.] (a) Each school district 47.32 shall provide public school pupils enrolled in grades 47.33 kindergarten through1210 with age-appropriate school bus 47.34 safety training. The training shall be results-oriented and 47.35 shall consist of both classroom instruction and practical 47.36 training using a school bus. Upon completing the training, a 48.1 student shall be able to demonstrate knowledge and understanding 48.2 of at least the following competencies and concepts: 48.3 (1) transportation by school bus is a privilege and not a 48.4 right; 48.5 (2) district policies for student conduct and school bus 48.6 safety; 48.7 (3) appropriate conduct while on the school bus; 48.8 (4) the danger zones surrounding a school bus; 48.9 (5) procedures for safely boarding and leaving a school 48.10 bus; 48.11 (6) procedures for safevehicle lanestreet or road 48.12 crossing; and 48.13 (7) school bus evacuation and other emergency procedures. 48.14 (b) Each nonpublic school located within the district shall 48.15 provide all nonpublic school pupils enrolled in grades 48.16 kindergarten through 10 who are transported by school bus at 48.17 public expense and attend school within the district's 48.18 boundaries with training as required in paragraph (a). The 48.19 school district shall make a bus available for the practical 48.20 training if the district transports the nonpublic students. 48.21 Each nonpublic school shall provide the instruction. 48.22 (c) Student school bus safety training shall commence 48.23 during school bus safety week. All students enrolled in grades 48.24 kindergarten through 3 who are transported by school bus and are 48.25 enrolled during the first or second week of school must 48.26 demonstrate achievement of the school bus safety training 48.27 competencies by the end of the third week of school. All 48.28 students enrolled in grades 4 through 10 who are transported by 48.29 school bus and are enrolled during the first or second week of 48.30 school must demonstrate achievement of the competencies by the 48.31 end of the sixth week of school. Students enrolled in grades 48.32 kindergarten through 10 who enroll in a school after thefirst48.33 second week of school and are transported by school bus shall 48.34 undergo school bus safety training and demonstrate achievement 48.35 of the school bus safety competencies withinthreefour weeks of 48.36 the first day of attendance. The pupil transportation safety 49.1 director in each district must certify to the commissioner of 49.2 education annuallyby October 15that all students transported 49.3 by school bus within the district have satisfactorily 49.4 demonstrated knowledge and understanding of the school bus 49.5 safety competencies according to this section or provide an 49.6 explanation for a student's failure to demonstrate the 49.7 competencies. The principal or other chief administrator of 49.8 each nonpublic school must certify annually to the public 49.9 transportation safety director of the district in which the 49.10 school is located that all of the school's students transported 49.11 by school bus at public expense have received training. A 49.12 school district may deny transportation to a student who fails 49.13 to demonstrate the competencies, unless the student is unable to 49.14 achieve the competencies due to a disability, or to a student 49.15 who attends a nonpublic school that fails to provide training as 49.16 required by this subdivision. 49.17(c)(d) A school district and a nonpublic school with 49.18 students transported by school bus at public expense must, to 49.19 the extent possible, provide kindergarten pupils with bus safety 49.20 training before the first day of school. 49.21(d)(e) A school district and a nonpublic school with 49.22 students transported by school bus at public expense must also 49.23 provide student safety education for bicycling and pedestrian 49.24 safety. 49.25 (f) A school district and a nonpublic school with students 49.26 transported by school bus at public expense must make reasonable 49.27 accommodations for the school bus, bicycle, and pedestrian 49.28 safety training of pupils known to speak English as a second 49.29 language and pupils with disabilities. 49.30 Sec. 7. Minnesota Statutes 1994, section 123.7991, 49.31 subdivision 3, is amended to read: 49.32 Subd. 3. [MODEL TRAINING PROGRAM.] The commissioner of 49.33 education shall develop a comprehensive model school bus safety 49.34 training program for pupils who ride the bus that includes bus 49.35 safety curriculum for both classroom and practical instruction, 49.36 methods for assessing attainment of school bus safety 50.1 competencies, and age-appropriate instructional materials. The 50.2 program must be adaptable for use by students with disabilities. 50.3 Sec. 8. Minnesota Statutes 1994, section 123.805, 50.4 subdivision 1, is amended to read: 50.5 Subdivision 1. [COMPREHENSIVE POLICY.] Each school 50.6 district shall develop and implement a comprehensive, written 50.7 policy governing pupil transportation safety, including 50.8 transportation of nonpublic school students, when applicable. 50.9 The policy shall, at minimum, contain: 50.10 (1) provisions for appropriate student bus safety training 50.11 under section 123.7991; 50.12 (2) rules governing student conduct on school buses and in 50.13 school bus loading and unloading areas; 50.14 (3) a statement of parent or guardian responsibilities 50.15 relating to school bus safety; 50.16 (4) provisions for notifying students and parents or 50.17 guardians of their responsibilities and the rules; 50.18 (5) an intradistrict system for reporting school bus 50.19 accidents or misconduct, a system for dealing with local law 50.20 enforcement officials in cases of criminal conduct on a school 50.21 bus, and a system for reporting accidents, crimes, incidents of 50.22 misconduct, and bus driver dismissals to the department of 50.23 public safety under section 169.452; 50.24 (6) a discipline policy to address violations of school bus 50.25 safety rules, including procedures for revoking a student's bus 50.26 riding privileges in cases of serious or repeated misconduct; 50.27 (7) a system for integrating school bus misconduct records 50.28 with other discipline records; 50.29 (8) a statement of bus driver duties; 50.30 (9) planned expenditures for safety activities under 50.31 section 123.799 and, where applicable, provisions governing bus 50.32 monitor qualifications, training, and duties; 50.33 (10) rules governing the use and maintenance of type III 50.34 vehicles, drivers of type III vehicles, qualifications to drive 50.35 a type III vehicle, qualifications for a type III vehicle and 50.36 the circumstances under which a student may be transported in a 51.1 type III vehicle; 51.2 (11) operating rules and procedures; 51.3 (12) provisions for annual bus driver in-service training 51.4 and evaluation; 51.5 (13) emergency procedures;and51.6 (14) a system for maintaining and inspecting equipment; 51.7 (15) requirements of the school district, if any, that 51.8 exceed state law minimum requirements for school bus operations; 51.9 and 51.10 (16) requirements for basic first aid training, which shall 51.11 include the Heimlich maneuver and procedures for dealing with 51.12 obstructed airways, shock, bleeding, and seizures. 51.13 School districts are encouraged to use the model policy 51.14 developed by the Minnesota school boards association, the 51.15 department of public safety, and the department of education, as 51.16 well as the current edition of the "National Standards for 51.17 School Buses and Operations" published by the National Safety 51.18 Council, in developing safety policies. Each district shall 51.19 submit a copy of its policy under this subdivision to the school 51.20 bus safety advisory committee no later than August 1, 1994, and51.21review and make appropriate amendments annually by August51.221. Each district shall review its policy annually and make 51.23 appropriate amendments, which must be submitted to the school 51.24 bus safety advisory committee within one month of approval by 51.25 the school board. 51.26 Sec. 9. Minnesota Statutes 1994, section 123.805, 51.27 subdivision 2, is amended to read: 51.28 Subd. 2. [SCHOOL TRANSPORTATION SAFETY DIRECTOR.] Each 51.29 school board shall designate a school transportation safety 51.30 director to oversee and implement pupil transportation safety 51.31 policies. The director shall have day-to-day responsibility for 51.32 pupil transportation safety within the district, including 51.33 transportation of nonpublic school children when provided by the 51.34 district. 51.35 Sec. 10. Minnesota Statutes 1994, section 124.223, is 51.36 amended to read: 52.1 124.223 [TRANSPORTATION AID AUTHORIZATION.] 52.2 Subdivision 1. [TO AND FROM SCHOOL; BETWEEN SCHOOLS.] 52.3 (a)State transportation aid is authorized forSchool districts 52.4 may provide transportationor board of resident elementary52.5pupils who reside one mile or more from the public schools which52.6they could attend; transportation or board of resident secondary52.7pupils who reside two miles or more from the public schools52.8which they could attend; transportationto and from schoolsthe52.9 resident pupils attendaccording to a program approved by the52.10commissioner of education,orbetweentheschools the resident 52.11 pupils attend for instructional classes, or to and from service 52.12 learning programs;transportation of resident elementary pupils52.13who reside one mile or more from a nonpublic school actually52.14attended; transportation of resident secondary pupils who reside52.15two miles or more from a nonpublic school actually attended;but 52.16 with respect to transportation of pupils to nonpublic schools 52.17 actually attended, only to the extent permitted by sections 52.18 123.76 to 123.79; transportation of resident pupils to and from 52.19 language immersion programs; transportation of a pupil who is a 52.20 custodial parent and that pupil's child between the pupil's home 52.21 and the child care provider and between the provider and the 52.22 school, if the home and provider are within the attendance area 52.23 of the school.State transportation aid is not authorized for52.24Late transportation home from school for pupils involved in52.25after school activities. State transportation aid is not52.26authorized for summer program transportation except as provided52.27in subdivision 8.52.28 (b) For the purposes of this subdivision, a district may 52.29 designate a licensed day care facility, respite care facility, 52.30 the residence of a relative, or the residence of a person chosen 52.31 by the pupil's parent or guardian as the home of a pupil for 52.32 part or all of the day, if requested by the pupil's parent or 52.33 guardian and if that facility or residence is within the 52.34 attendance area of the school the pupil attends. 52.35 (c)State transportation aid is authorized forSchool 52.36 districts may provide transportation to and from school of an 53.1 elementary pupil who moves during the school year within an area 53.2 designated by the district as a mobility zone, but only for the 53.3 remainder of the school year. The attendance areas of schools 53.4 in a mobility zone must be contiguous. To be in a mobility 53.5 zone, a school must meet both of the following requirements: 53.6 (1) more than 50 percent of the pupils enrolled in the 53.7 school are eligible for free or reduced school lunch; and 53.8 (2) the pupil withdrawal rate for the last year is more 53.9 than 12 percent. 53.10 (d) A pupil withdrawal rate is determined by dividing: 53.11 (1) the sum of the number of pupils who withdraw from the 53.12 school, during the school year, and the number of pupils 53.13 enrolled in the school as a result of transportation provided 53.14 under this paragraph, by 53.15 (2) the number of pupils enrolled in the school. 53.16 (e) The district may establish eligibility requirements for 53.17 individual pupils to receive transportation in the mobility zone. 53.18 Subd. 2. [OUTSIDE DISTRICT.]State transportation aid is53.19authorized forSchool districts may provide transportation to 53.20 and from or board and lodging in another district, of resident 53.21 pupils of a district without a secondary school. The pupils may 53.22 attend a classified secondary school in another district 53.23 andshallmay receive board and lodging in or transportation to 53.24 and from a district having a classified secondary school at the 53.25 expense of the district of the pupil's residence. 53.26 Subd. 3. [SECONDARY VOCATIONAL CENTERS.]State53.27transportation aid is authorized forSchool districts may 53.28 provide transportation to and from a commissioner approved 53.29 secondary vocational center for secondary vocational classes for 53.30 resident pupils of any of the districts who are members of or 53.31 participating in programs at that center. 53.32 Subd. 4. [PUPILS WITH DISABILITIES.]State transportation53.33aid is authorized forSchool districts may provide 53.34 transportation or board and lodging of a pupil with a disability 53.35 when that pupil cannot be transported on a regular school bus, 53.36 the conveying of pupils with a disability between home or a 54.1 respite care facility and school and within the school plant, 54.2 necessary transportation of pupils with a disability from home 54.3 or from school to other buildings, including centers such as 54.4 developmental achievement centers, hospitals and treatment 54.5 centers where special instruction or services required by 54.6 sections 120.17 and 120.1701 are provided, within or outside the 54.7 district where services are provided, and necessary 54.8 transportation for resident pupils with a disability required by 54.9 sections 120.17, subdivision 4a, and 120.1701. Transportation 54.10 of pupils with a disability between home or a respite care 54.11 facility and school shall not be subject to any distance 54.12 requirement for childrennot yet enrolled in kindergarten or to54.13the requirement in subdivision 1 that elementary pupils reside54.14at least one mile from school and secondary pupils reside at54.15least two miles from school in order for the transportation to54.16qualify for aid. 54.17 Subd. 5. [BOARD AND LODGING; NONRESIDENTS WITH 54.18 DISABILITIES.]State transportation aid is authorized forSchool 54.19 districts may provide, when necessary, board and lodging for 54.20 nonresident pupils with a disability in a district maintaining 54.21 special classes. 54.22 Subd. 6. [SHARED TIME.]State transportation aid is54.23authorized forSchool districts may provide transportation from 54.24 one educational facility to another within the district for 54.25 resident pupils enrolled on a shared time basis in educational 54.26 programs, and necessary transportation required by sections 54.27 120.17, subdivision 9, and 120.1701 for resident pupils with a 54.28 disability who are provided special instruction and services on 54.29 a shared time basis. 54.30 Subd. 7. [FARIBAULT STATE ACADEMIES.]State transportation54.31aid is authorized forSchool districts may provide 54.32 transportation forresidentsresident pupils with disabilities 54.33 to and fromthe Minnesota state academy for the deaf or the54.34Minnesota state academy for the blindboard and lodging 54.35 facilities when the pupil is boarded and lodged for educational 54.36 purposes. 55.1 Subd. 8. [SUMMER INSTRUCTIONAL PROGRAMS.]State55.2transportation aid is authorized forSchool districts may 55.3 provide services described in subdivisions 1 to 7, 9, and 10 55.4 when provided for pupils with a disability in conjunction with a 55.5 summer program that meets the requirements of section 124A.27, 55.6 subdivision 9.State transportation aid is authorized55.7forSchool districts may provide services described in 55.8 subdivision 1 when provided during the summer in conjunction 55.9 with a learning year program established under section 121.585. 55.10 Subd. 9. [COOPERATIVE ACADEMIC AND VOCATIONAL.]State55.11transportation aid is authorized forSchool districts may 55.12 provide transportation to, from or between educational 55.13 facilities located in any of two or more school districts 55.14 jointly offering academic classes or secondary vocational 55.15 classes not provided at a secondary vocational center for 55.16 resident pupils of any of these districts. 55.17 Subd. 10. [NONPUBLIC SUPPORT SERVICES.]State55.18transportation aid is authorized forSchool districts may 55.19 provide necessary transportation within district boundaries 55.20 between a nonpublic school and a public school or a neutral site 55.21 for nonpublic school pupils who are provided pupil support 55.22 services pursuant to section 123.935. 55.23 Subd. 11. [RULES.] The state board of education may amend 55.24 rules relating to transportationaid anddata. 55.25 Sec. 11. Minnesota Statutes 1994, section 124.225, 55.26 subdivision 1, is amended to read: 55.27 Subdivision 1. [DEFINITIONS.] For purposes of this 55.28 section, the terms defined in this subdivision have the meanings 55.29 given to them. 55.30 (a) "FTE" means a full-time equivalent pupil whose 55.31 transportation is authorized for aid purposes by section 124.223. 55.32 (b) "Authorized cost for regular transportation" means the 55.33 sum of: 55.34 (1) all expenditures for transportation in the regular 55.35 category, as defined in paragraph (c), clause (1), for which aid 55.36 is authorized in section 124.223, plus 56.1 (2) an amount equal to one year's depreciation on the 56.2 district's school bus fleet and mobile units computed on a 56.3 straight line basis at the rate of 15 percent per year for 56.4 districts operating a program under section 121.585 for grades 1 56.5 to 12 for all students in the district and 12-1/2 percent per 56.6 year for other districts of the cost of the fleet, plus 56.7 (3) an amount equal to one year's depreciation on district 56.8 school buses reconditioned by the department of corrections 56.9 computed on a straight line basis at the rate of 33-1/3 percent 56.10 per year of the cost to the district of the reconditioning, plus 56.11 (4) an amount equal to one year's depreciation on the 56.12 district's type three school buses, as defined in section 56.13 169.01, subdivision 6, clause (5), which must be used a majority 56.14 of the time for the purposes in sections 124.223 and 124.226, 56.15 subdivisions 5, 8, and 9, and were purchased after July 1, 1982, 56.16 for authorized transportation of pupils,with the prior approval56.17of the commissioner,computed on a straight line basis at the 56.18 rate of 20 percent per year of the cost of the type three school 56.19 buses. 56.20 (c) "Transportation category" means a category of 56.21 transportation service provided to pupils as follows: 56.22 (1) Regular transportation is transportation services 56.23 provided during the regular school year under section 124.223, 56.24 subdivisions 1 and 2, excluding the following transportation 56.25 services provided under section 124.223, subdivision 1: 56.26 transportation between schools; transportation to and from 56.27 service learning programs; noon transportation to and from 56.28 school for kindergarten pupils attending half-day sessions; 56.29 transportation of pupils to and from schools located outside 56.30 their normal attendance areas under the provisions of a plan for 56.31 desegregation mandated by the state board of education or under 56.32 court order; and transportation of elementary pupils to and from 56.33 school within a mobility zone. 56.34 (2) Nonregular transportation is transportation services 56.35 provided under section 124.223, subdivision 1, that are excluded 56.36 from the regular category and transportation services provided 57.1 under section 124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10. 57.2 (3) Excess transportation is transportation to and from 57.3 school during the regular school year for secondary pupils 57.4 residing at least one mile but less than two miles from the 57.5 public school they could attend or from the nonpublic school 57.6 actually attended, and transportation to and from school for 57.7 pupils residing less than one mile from school who are 57.8 transported because of extraordinary traffic, drug, or crime 57.9 hazards. 57.10 (4) Desegregation transportation is transportation within 57.11 and outside of the district during the regular school year of 57.12 pupils to and from schools located outside their normal 57.13 attendance areas under a plan for desegregation mandated by the 57.14 state board or under court order. 57.15 (5) Handicapped transportation is transportation provided 57.16 under section 124.223, subdivision 4, for pupils with a 57.17 disability between home or a respite care facility and school or 57.18 other buildings where special instruction required by sections 57.19 120.17 and 120.1701 is provided. 57.20 (d) "Mobile unit" means a vehicle or trailer designed to 57.21 provide facilities for educational programs and services, 57.22 including diagnostic testing, guidance and counseling services, 57.23 and health services. A mobile unit located off nonpublic school 57.24 premises is a neutral site as defined in section 123.932, 57.25 subdivision 9. 57.26 (e) "Current year" means the school year for which aid will 57.27 be paid. 57.28 (f) "Base year" means the second school year preceding the 57.29 school year for which aid will be paid. 57.30 (g) "Base cost" means the ratio of: 57.31 (1) the sum of the authorized cost in the base year for 57.32 regular transportation as defined in paragraph (b) plus the 57.33 actual cost in the base year for excess transportation as 57.34 defined in paragraph (c); 57.35 (2) to the sum of the number of weighted FTE's in the 57.36 regular and excess categories in the base year. 58.1 (h) "Pupil weighting factor" for the excess transportation 58.2 category for a school district means the lesser of one, or the 58.3 result of the following computation: 58.4 (1) Divide the square mile area of the school district by 58.5 the number of FTE's in the regular and excess categories in the 58.6 base year. 58.7 (2) Raise the result in clause (1) to the one-fifth power. 58.8 (3) Divide four-tenths by the result in clause (2). 58.9 The pupil weighting factor for the regular transportation 58.10 category is one. 58.11 (i) "Weighted FTE's" means the number of FTE's in each 58.12 transportation category multiplied by the pupil weighting factor 58.13 for that category. 58.14 (j) "Sparsity index" for a school district means the 58.15 greater of .005 or the ratio of the square mile area of the 58.16 school district to the sum of the number of weighted FTE's by 58.17 the district in the regular and excess categories in the base 58.18 year. 58.19 (k) "Density index" for a school district means the greater 58.20 of one or the result obtained by subtracting the product of the 58.21 district's sparsity index times 20 from two. 58.22 (l) "Contract transportation index" for a school district 58.23 means the greater of one or the result of the following 58.24 computation: 58.25 (1) Multiply the district's sparsity index by 20. 58.26 (2) Select the lesser of one or the result in clause (1). 58.27 (3) Multiply the district's percentage of regular FTE's in 58.28 the current year using vehicles that are not owned by the school 58.29 district by the result in clause (2). 58.30 (m) "Adjusted predicted base cost" means the predicted base 58.31 cost as computed in subdivision 3a as adjusted under subdivision 58.32 7a. 58.33 (n) "Regular transportation allowance" means the adjusted 58.34 predicted base cost, inflated and adjusted under subdivision 7b. 58.35 Sec. 12. Minnesota Statutes 1994, section 124.225, 58.36 subdivision 3a, is amended to read: 59.1 Subd. 3a. [PREDICTED BASE COST.] A district's predicted 59.2 base cost equals the result of the following computation: 59.3 (a) Multiply the transportation formula allowance by the 59.4 district's sparsity index raised to the one-fourth power. The 59.5 transportation formula allowance is$447$477 for the 59.61991-19921993-1994 base yearand $463 for the 1992-1993 base59.7year. 59.8 (b) Multiply the result in paragraph (a) by the district's 59.9 density index raised to the35/1001/2 power. 59.10 (c) Multiply the result in paragraph (b) by the district's 59.11 contract transportation index raised to the 1/20 power. 59.12 Sec. 13. Minnesota Statutes 1994, section 124.225, 59.13 subdivision 7b, is amended to read: 59.14 Subd. 7b. [INFLATION FACTORS.] (a) The adjusted predicted 59.15 base cost determined for a district under subdivision 7a for the 59.16 base year must be increased by2.35zero percent to determine 59.17 the district's regular transportation allowance for the 59.181993-19941995-1996 school yearand by 3.425 percent to59.19determine the district's regular transportation allowance for59.20the 1994-1995 school year, but. 59.21 (b) Notwithstanding paragraph (a), the regular 59.22 transportation allowance for a district for the 1995-1996 school 59.23 year cannot be less than the district's minimum regular 59.24 transportation allowance according to Minnesota Statutes 1990, 59.25 section 124.225, subdivision 1, paragraph (t). 59.26 Sec. 14. Minnesota Statutes 1994, section 124.225, 59.27 subdivision 7d, is amended to read: 59.28 Subd. 7d. [TRANSPORTATION REVENUE.] Transportation revenue 59.29 for each district equals the sum of the district's regular 59.30 transportation revenue and the district's nonregular 59.31 transportation revenue. 59.32 (a) The regular transportation revenue for each district 59.33 equals the district's regular transportation allowance according 59.34 to subdivision 7b times the sum of the number of FTE's by the 59.35 district in the regular, desegregation, and handicapped 59.36 categories in the current school year. 60.1 (b) For the1992-1993 and later school years1995-1996 60.2 school year, the nonregular transportation revenue for each 60.3 district equals the lesser of the district's actual cost in the 60.4 current school year for nonregular transportation services or 60.5 the product of the district's actual cost in the base year for 60.6 nonregular transportation services as defined for the current 60.7 year in subdivision 1, paragraph (c), times the ratio of the 60.8 district's average daily membership for the current year to the 60.9 district's average daily membership for the base year according 60.10 to section 124.17, subdivision 2, times the nonregular 60.11 transportation inflation factor for the current year, minus the 60.12 amount of regular transportation revenue attributable to FTE's 60.13 in the desegregation and handicapped categories in the current 60.14 school year, plus the excess nonregular transportation revenue 60.15 for the current year according to subdivision 7e. The 60.16 nonregular transportation inflation factor is1.04351.0 for the 60.171993-19941995-1996 school yearand 1.03425 for the 1994-199560.18school year. 60.19 Sec. 15. Minnesota Statutes 1994, section 124.225, 60.20 subdivision 7f, is amended to read: 60.21 Subd. 7f. [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 60.22 district shall reserve an amount equal to the greater of 60.23$1,000$500 orone percent of the sum of the district's regular60.24transportation revenue according to subdivision 7d, paragraph60.25(a), and nonregular transportation revenue according to60.26subdivision 7d, paragraph (b)$1.50 times the number of fund 60.27 balance pupil units, for that school year to provide student 60.28 transportation safety programs under section 123.799. This 60.29 revenue may only be used if the district complies with the 60.30 reporting requirements of section 123.7991, 123.805, 169.452, 60.31 169.4582, or 171.321, subdivision 5. 60.32 Sec. 16. Minnesota Statutes 1994, section 124.225, 60.33 subdivision 8a, is amended to read: 60.34 Subd. 8a. [TRANSPORTATION AID.] (a) A district's 60.35 transportation aid equals the product of: 60.36 (1) the difference between the transportation revenue and 61.1 the sum of: 61.2 (i) the maximum basic transportation levy for that school 61.3 year under section275.125124.226, subdivision51, plus 61.4 (ii) the maximum nonregular transportation levy for that 61.5 school year under section 124.226, subdivision 4, plus 61.6 (iii) the contracted services aid reduction under 61.7 subdivision 8k, 61.8 (2) times the ratio of the sum of the actual amounts levied 61.9 under section 124.226, subdivisions 1 and 4, to the sum of the 61.10 permitted maximum levies under section 124.226, subdivisions 1 61.11 and 4. 61.12 (b) If the total appropriation for transportation aid for 61.13 any fiscal year is insufficient to pay all districts the full 61.14 amount of aid earned, the department of education shall reduce 61.15 each district's aid in proportion to the number of resident 61.16 pupils in average daily membership in the district to the state 61.17 total average daily membership, and shall reduce the 61.18 transportation levy of off-formula districts in the same 61.19 proportion. 61.20 Sec. 17. Minnesota Statutes 1994, section 124.225, 61.21 subdivision 8l, is amended to read: 61.22 Subd. 8l. [ALTERNATIVE ATTENDANCE PROGRAMS.] A district 61.23 that enrolls nonresident pupils in programs under sections 61.24 120.062, 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 61.25 126.22,shallmay provide authorized transportation to the pupil 61.26 within the attendance area for the school that the pupil 61.27 attends.The state shall pay transportation aid attributable to61.28the pupil to the nonresident district according to this61.29section.The resident district need not provide or pay for 61.30 transportation between the pupil's residence and the district's 61.31 border. 61.32 Sec. 18. Minnesota Statutes 1994, section 124.225, 61.33 subdivision 8m, is amended to read: 61.34 Subd. 8m. [TRANSPORTATION SAFETY AID.] A district's 61.35 transportation safety aid equals the district's reserved revenue 61.36 for transportation safety under subdivision 7f for that school 62.1 year. Failure of a school district to comply with the reporting 62.2 requirements of section 123.7991, 123.805, 169.452, 169.4582, or 62.3 171.321, subdivision 5, may result in a withholding of that 62.4 district's transportation safety aid for that school year. 62.5 Sec. 19. Minnesota Statutes 1994, section 124.225, 62.6 subdivision 9, is amended to read: 62.7 Subd. 9. [DISTRICT REPORTS.] Each district shall report 62.8 data to the department as required by the department to 62.9implement the transportation aid formulaaccount for 62.10 transportation expenditures.If a district's final62.11transportation aid payment is adjusted after the final aid62.12payment has been made to all districts, the adjustment shall be62.13made by increasing or decreasing the district's aid for the next62.14fiscal year.62.15 Sec. 20. Minnesota Statutes 1994, section 124.225, is 62.16 amended by adding a subdivision to read: 62.17 Subd. 13. [TARGETED NEEDS TRANSPORTATION REVENUE.] A 62.18 district's targeted needs transportation revenue for the 62.19 1996-1997 and later school years equals the sum of the special 62.20 programs transportation revenue according to subdivision 14, the 62.21 integration transportation revenue according to subdivision 15, 62.22 and the nonpublic pupil transportation revenue according to 62.23 subdivision 16. 62.24 Sec. 21. Minnesota Statutes 1994, section 124.225, is 62.25 amended by adding a subdivision to read: 62.26 Subd. 14. [SPECIAL PROGRAMS TRANSPORTATION REVENUE.] A 62.27 district's special programs transportation revenue for the 62.28 1996-1997 and later school years equals the sum of: 62.29 (a) the district's actual cost in the base year for 62.30 transportation services for children with disabilities under 62.31 section 124.223, subdivisions 4, 5, 7, and 8, times the ratio of 62.32 the district's average daily membership for the current school 62.33 year to the district's average daily membership for the base 62.34 year; plus 62.35 (b) 80 percent of the difference between: 62.36 (1) the district's actual cost in the current year for 63.1 transportation services for children with disabilities under 63.2 section 124.223, subdivisions 4, 5, 7, and 8; and 63.3 (2) the amount computed in paragraph (a). 63.4 Sec. 22. Minnesota Statutes 1994, section 124.225, is 63.5 amended by adding a subdivision to read: 63.6 Subd. 15. [INTEGRATION TRANSPORTATION REVENUE.] A 63.7 district's integration transportation revenue for the 1996-1997 63.8 and later school years equals the following amounts: 63.9 (a) for independent school district No. 709, Duluth, $4 63.10 times the actual pupil units for the school year; 63.11 (b) for independent school district No. 625, St. Paul, $73 63.12 times the actual pupil units for the school year; and 63.13 (c) for special school district No. 1, Minneapolis, $158 63.14 times the actual pupil units for the school year. 63.15 Sec. 23. Minnesota Statutes 1994, section 124.225, is 63.16 amended by adding a subdivision to read: 63.17 Subd. 16. [NONPUBLIC PUPIL TRANSPORTATION REVENUE.] (a) A 63.18 district's nonpublic pupil transportation revenue for the 63.19 1996-1997 and later school years for transportation services for 63.20 nonpublic school pupils according to sections 123.39, 123.76 to 63.21 123.78, 124.223, and 124.226, equals the sum of the amounts 63.22 computed in paragraphs (b) and (c). This revenue does not limit 63.23 the obligation to transport pupils under sections 123.76 to 63.24 123.79. 63.25 (b) For regular and excess transportation according to 63.26 section 124.225, subdivision 1, paragraph (c), clauses (1) and 63.27 (3), an amount equal to the product of: 63.28 (1) the district's actual expenditure per pupil transported 63.29 in the regular and excess transportation categories during the 63.30 second preceding school year; times 63.31 (2) the number of nonpublic school pupils residing in the 63.32 district who receive regular or excess transportation service or 63.33 reimbursement for the current school year; times 63.34 (3) the ratio of the formula allowance pursuant to section 63.35 124A.22, subdivision 2, for the current school year to the 63.36 formula allowance pursuant to section 124A.22, subdivision 2, 64.1 for the second preceding school year. 64.2 (c) For nonregular transportation according to section 64.3 124.225, subdivision 1, paragraph (c), clause (2), and late 64.4 activity transportation according to section 124.226, 64.5 subdivision 9, an amount equal to the product of: 64.6 (1) the district's actual expenditure for nonregular and 64.7 late activity transportation for nonpublic school pupils during 64.8 the second preceding school year; times 64.9 (2) the ratio of the formula allowance pursuant to section 64.10 124A.22, subdivision 2, for the current school year to the 64.11 formula allowance pursuant to section 124A.22, subdivision 2, 64.12 for the second preceding school year. 64.13 Sec. 24. Minnesota Statutes 1994, section 124.225, is 64.14 amended by adding a subdivision to read: 64.15 Subd. 17. [TARGETED NEEDS TRANSPORTATION AID.] (a) A 64.16 district's targeted needs transportation aid is the difference 64.17 between its targeted needs transportation revenue under 64.18 subdivision 13 and its targeted needs transportation revenue 64.19 under section 124.226, subdivision 10. 64.20 (b) If a district does not levy the entire amount 64.21 permitted, aid must be reduced in proportion to the actual 64.22 amount levied. 64.23 Sec. 25. Minnesota Statutes 1994, section 124.226, 64.24 subdivision 3, is amended to read: 64.25 Subd. 3. [OFF-FORMULA ADJUSTMENT.] In a district if the 64.26 basic transportation levy under subdivision 1 attributable to 64.27 that fiscal year is more than the difference between (1) the 64.28 district's transportation revenue under section 124.225, 64.29 subdivision 7d, and (2) the sum of the district's maximum 64.30 nonregular levy under subdivision 4 and the district's 64.31 contracted services aid reduction under section 124.225, 64.32 subdivision 8k, and the amount of any reduction due to 64.33 insufficient appropriation under section 124.225, subdivision 64.34 8a, the district's transportation levy inthe second year64.35followingeach fiscal year must be reduced by the difference 64.36 between the amount of the excess and the amount of the aid 65.1 reduction for the same fiscal year according to subdivision 3a. 65.2 Sec. 26. Minnesota Statutes 1994, section 124.226, 65.3 subdivision 4, is amended to read: 65.4 Subd. 4. [NONREGULAR TRANSPORTATION.] A school district 65.5 may also make a levy for unreimbursed nonregular transportation 65.6 costs pursuant to this subdivision. 65.7 (a) For the 1995-1996 school year, the amount of the levy 65.8 shall be the result of the following computation: 65.9(a)(1) multiply 65.10(1)(i) the amount of the district's nonregular 65.11 transportation revenue under section 124.225, subdivision 7d, 65.12 that is more than the product of$60$65 times the district's 65.13 average daily membership, by 65.14(2)(ii) 50 percent; 65.15(b)(2) subtract the result in clause(a)(1) from the 65.16 district's total nonregular transportation revenue; 65.17(c)(3) multiply the result in clause(b)(2) by the lesser 65.18 of one or the ratio of 65.19 (i) the quotient derived by dividing the adjusted net tax 65.20 capacity of the district for the year before the year the levy 65.21 is certified by the average daily membership in the district for 65.22 the school year to which the levy is attributable, to 65.23 (ii) $8,000. 65.24 Sec. 27. Minnesota Statutes 1994, section 124.226, 65.25 subdivision 9, is amended to read: 65.26 Subd. 9. [LATE ACTIVITY BUSES.] (a) For taxes payable in 65.27 1996, a school district may levy an amount equal to the lesser 65.28 of: 65.29 (1) the actual cost of late transportation home from 65.30 school, between schools within a district, or between schools in 65.31 one or more districts that have an agreement under sections 65.32 122.241 to 122.248, 122.535, 122.541, or 124.494, for pupils 65.33 involved in after school activities for the school year 65.34 beginning in the year the levy is certified; or 65.35 (2) two percent of the sum of the district's regular 65.36 transportation revenue and the district's nonregular 66.1 transportation revenue for that school year according to section 66.2 124.225, subdivision 7d. 66.3 (b) A district that levies under this section must provide 66.4 late transportation from school for students participating in 66.5 any academic-related activities provided by the district if 66.6 transportation is provided for students participating in 66.7 athletic activities. 66.8 (c) Notwithstanding section 121.904, 50 percent of the levy 66.9 certified for taxes payable in 1994, and for each year 66.10 thereafter the entire amount of this levy, shall be recognized 66.11 as revenue for the fiscal year in which the levy is certified. 66.12 Sec. 28. Minnesota Statutes 1994, section 124.226, is 66.13 amended by adding a subdivision to read: 66.14 Subd. 10. [TARGETED NEEDS TRANSPORTATION LEVY.] A school 66.15 district may make a levy for targeted needs transportation costs 66.16 according to this subdivision. The amount of the levy shall be 66.17 the result of the following computation: 66.18 (1) For fiscal year 1997 and later, targeted needs 66.19 transportation levy equalization revenue equals 28 percent of 66.20 the sum of the district's special programs transportation 66.21 revenue under section 124.225, subdivision 14, and the 66.22 district's integration transportation revenue under section 66.23 124.225, subdivision 15. 66.24 (2) The targeted needs transportation levy equals the 66.25 result in clause (1) times the lesser of one or the ratio of (i) 66.26 the quotient derived by dividing the adjusted net tax capacity 66.27 of the district for the year before the year the levy is 66.28 certified by the actual pupil units in the district for the 66.29 school year to which the levy is attributable, to (ii) $3,540. 66.30 Sec. 29. Minnesota Statutes 1994, section 126.15, 66.31 subdivision 2, is amended to read: 66.32 Subd. 2. [APPOINTMENT OF MEMBERS.] Unless the parents or 66.33 guardian of a pupil object in writing to the school authorities 66.34 to the appointment of the pupil on a school safety patrol, it is 66.35 lawful for any pupil over nine years of age to be appointed and 66.36 designated as a member thereof, provided that in any school in 67.1 which there are no pupils who have attained such age any pupil 67.2 in the highest grade therein may be so appointed and 67.3 designated. School authorities may also appoint and designate 67.4 nonpupil adults as members of a school safety patrol on a 67.5 voluntary or for-hire basis. 67.6 Sec. 30. Minnesota Statutes 1994, section 169.01, 67.7 subdivision 6, is amended to read: 67.8 Subd. 6. [SCHOOL BUS.] "School bus" means a motor vehicle 67.9 used to transport pupils to or from a school defined in section 67.10 120.101, or to or from school-related activities, by the school 67.11 or a school district, or by someone under an agreement with the 67.12 school or a school district. A school bus does not include a 67.13 motor vehicle transporting children to or from school for which 67.14 parents or guardians receive direct compensation from a school 67.15 district, a motor coach operating under charter carrier 67.16 authority,ora transit bus providing services as defined in 67.17 section 174.22, subdivision 7, or a vehicle otherwise qualifying 67.18 as a type III vehicle under paragraph (5), when the vehicle is 67.19 properly registered and insured and being driven by an employee 67.20 or agent of a school district for nonscheduled transportation. 67.21 A school bus may be type A, type B, type C, or type D, or type 67.22 III as follows: 67.23 (1) A "type A school bus" is a conversion or body 67.24 constructed upon a van-type compact truck or a front-section 67.25 vehicle, with a gross vehicle weight rating of 10,000 pounds or 67.26 less, designed for carrying more than ten persons. 67.27 (2) A "type B school bus" is a conversion or body 67.28 constructed and installed upon a van or front-section vehicle 67.29 chassis, or stripped chassis, with a gross vehicle weight rating 67.30 of more than 10,000 pounds, designed for carrying more than ten 67.31 persons. Part of the engine is beneath or behind the windshield 67.32 and beside the driver's seat. The entrance door is behind the 67.33 front wheels. 67.34 (3) A "type C school bus" is a body installed upon a flat 67.35 back cowl chassis with a gross vehicle weight rating of more 67.36 than 10,000 pounds, designated for carrying more than ten 68.1 persons. All of the engine is in front of the windshield and 68.2 the entrance door is behind the front wheels. 68.3 (4) A "type D school bus" is a body installed upon a 68.4 chassis, with the engine mounted in the front, midship or rear, 68.5 with a gross vehicle weight rating of more than 10,000 pounds, 68.6 designed for carrying more than ten persons. The engine may be 68.7 behind the windshield and beside the driver's seat; it may be at 68.8 the rear of the bus, behind the rear wheels, or midship between 68.9 the front and rear axles. The entrance door is ahead of the 68.10 front wheels. 68.11 (5) Type III school buses and type III Head Start buses are 68.12 restricted to passenger cars, station wagons, vans, and buses 68.13 having a maximum manufacturer's rated seating capacity of ten 68.14 people, including the driver, and a gross vehicle weight rating 68.15 of 10,000 pounds or less. In this subdivision, "gross vehicle 68.16 weight rating" means the value specified by the manufacturer as 68.17 the loaded weight of a single vehicle. A "type III school bus" 68.18 and "type III Head Start bus" must not be outwardly equipped and 68.19 identified as a type A, B, C, or D school bus or type A, B, C, 68.20 or D Head Start bus. 68.21 Sec. 31. Minnesota Statutes 1994, section 169.21, 68.22 subdivision 2, is amended to read: 68.23 Subd. 2. [RIGHTS IN ABSENCE OF SIGNALS.] (a) Where 68.24 traffic-control signals are not in place or in operation the 68.25 driver of a vehicle shall yield the right-of-way, slowing down 68.26 or stopping if need be to so yield, to a pedestrian crossing the 68.27 roadway within a crosswalk but no pedestrian shall suddenly 68.28 leave a curb or other place of safety and walk or run into the 68.29 path of a vehicle which is so close that it is impossible for 68.30 the driver to yield. This provision shall not apply under the 68.31 conditions as otherwise provided in this subdivision. 68.32 (b) When any vehicle is stopped at a marked crosswalk or at 68.33 any unmarked crosswalk at an intersection to permit a pedestrian 68.34 to cross the roadway, the driver of any other vehicle 68.35 approaching from the rear shall not overtake and pass the 68.36 stopped vehicle. 69.1 (c) It is unlawful for any person to drive a motor vehicle 69.2 through a column of school children crossing a street or highway 69.3 or past a member of a school safety patrol or adult crossing 69.4 guard, while the member of the school safety patrol or adult 69.5 crossing guard is directing the movement of children across a 69.6 street or highway and while the school safety patrol member or 69.7 adult crossing guard is holding an official signal in the stop 69.8 position. A person who violates this paragraph is guilty of a 69.9 misdemeanor. A person who violates this paragraph a second or 69.10 subsequent time within one year of a previous conviction under 69.11 this paragraph is guilty of a gross misdemeanor. 69.12 Sec. 32. Minnesota Statutes 1994, section 169.444, 69.13 subdivision 2, is amended to read: 69.14 Subd. 2. [VIOLATIONS BY DRIVERS; PENALTIES.] (a) A person 69.15 who fails to stop a vehicle or to keep it stopped, as required 69.16 in subdivision 1, is guilty of a misdemeanor punishable by a 69.17 fine of not less than $300. 69.18 (b) A person is guilty of a gross misdemeanor if the person 69.19 fails to stop a motor vehicle or to keep it stopped, as required 69.20 in subdivision 1, and commits either or both of the following 69.21 acts: 69.22 (1) passes or attempts to pass the school bus in a motor 69.23 vehicle on the right-hand, passenger-door side of the bus; or 69.24 (2) passes or attempts to pass the school bus in a motor 69.25 vehicle when a school child is outside of and on the street or 69.26 highway used by the school bus or on the adjacent sidewalk. 69.27 Sec. 33. Minnesota Statutes 1994, section 169.4502, 69.28 subdivision 4, is amended to read: 69.29 Subd. 4. [COLOR.] Fenders may be painted black. The hood 69.30 may be painted nonreflective black or nonreflective yellow. The 69.31 grill may be manufacturer's standard color or chrome. 69.32 Sec. 34. Minnesota Statutes 1994, section 169.4503, is 69.33 amended by adding a subdivision to read: 69.34 Subd. 10a. [EMERGENCY EQUIPMENT; FIRST AID KITS.] A first 69.35 aid kit, and a body fluids cleanup kit is required regardless of 69.36 the age of the vehicle. They must be contained in removable, 70.1 moisture- and dust-proof containers mounted in an accessible 70.2 place within the driver's compartment of the school bus and must 70.3 be marked to indicate their identity and location. 70.4 Sec. 35. Minnesota Statutes 1994, section 169.451, is 70.5 amended by adding a subdivision to read: 70.6 Subd. 5. [RANDOM SPOT INSPECTIONS.] In addition to the 70.7 annual inspection, the Minnesota state patrol has authority to 70.8 conduct random, unannounced spot inspections of any school bus 70.9 or Head Start bus being operated within the state at the 70.10 location where the bus is kept when not in operation to 70.11 ascertain whether its construction, design, equipment, and color 70.12 comply with all provisions of law, including the Minnesota 70.13 school bus equipment standards in sections 169.4501 to 169.4504. 70.14 Sec. 36. [169.4511] [SCHOOL BUS ACCIDENTS; REINSPECTION.] 70.15 Subdivision 1. [POSTCRASH INSPECTION.] A peace officer 70.16 responding to an accident involving a school bus or Head Start 70.17 bus must immediately notify the state patrol if the accident 70.18 results in death or serious personal injury on the school bus, 70.19 or property damage to the school bus of an apparent extent of 70.20 more than $4,400. No person shall drive or knowingly permit or 70.21 cause to be driven, for the purpose of transporting students, 70.22 any school bus or Head Start bus after such an accident unless 70.23 the vehicle: 70.24 (1) has been inspected by the Minnesota state patrol and 70.25 the state patrol has determined that the vehicle may safely be 70.26 operated; or 70.27 (2) a waiver has been granted under subdivision 2. 70.28 A violation of this section is a misdemeanor. 70.29 Subd. 2. [WAIVER.] A state trooper or designee of the 70.30 Minnesota state patrol called to the scene of an accident by a 70.31 responding peace officer under subdivision 1 may waive the 70.32 inspection requirement of subdivision 1 if the trooper or state 70.33 patrol designee determines that a postcrash inspection is not 70.34 needed or cannot be accomplished without unreasonable delay. 70.35 The trooper or state patrol designee granting a waiver must 70.36 provide to the driver of the school bus for which the waiver is 71.1 granted a written statement that the inspection has been 71.2 waived. The written statement must include the incident report 71.3 number assigned to the accident by the state patrol. 71.4 Sec. 37. Minnesota Statutes 1994, section 169.452, is 71.5 amended to read: 71.6 169.452 [ACCIDENT AND SERIOUS INCIDENT REPORTING.] 71.7 The department of public safety shall develop uniform 71.8 definitions of a school bus accident, an incident of serious 71.9 misconduct, and an incident that results in personal injury or 71.10 death. The department shall determine what type of information 71.11 on school bus accidents and incidents, including criminal 71.12 conduct, and bus driver dismissals for cause should be collected 71.13 and develop a uniform accident and incident reporting form to 71.14 collect those data, including data relating to type III 71.15 vehicles, statewide. In addition to the form, the department 71.16 shall have an alternative method of reporting that allows school 71.17 districts to use computer technology to provide the required 71.18 information. School districts shall report the information 71.19 required by the department using either format. A school 71.20 district must not be charged for reporting forms or reporting 71.21 procedures under this section. Data collectedwith this71.22reporting formunder this section shall be analyzed to help 71.23 develop accident, crime, and misconduct prevention 71.24 programs. This section is not subject to chapter 14. 71.25 Sec. 38. Minnesota Statutes 1994, section 169.454, 71.26 subdivision 5, is amended to read: 71.27 Subd. 5. [FIRST AID KIT.] A minimum of a ten-unit first 71.28 aid kit, and a body fluids cleanup kit is required.The bus71.29 They musthave abe contained in removable, moisture- and 71.30 dust-prooffirst aid kitcontainers mounted in an accessible 71.31 place within the driver's compartment and must be marked to 71.32 indicateitstheir identity and location. 71.33 Sec. 39. Minnesota Statutes 1994, section 169.454, is 71.34 amended by adding a subdivision to read: 71.35 Subd. 13. [EXEMPTION.] When a vehicle otherwise qualifying 71.36 as a type III vehicle under section 169.01, subdivision 6, 72.1 paragraph (5), whether owned and operated by a school district 72.2 or privately owned and operated, is used to transport school 72.3 children in a nonscheduled situation, it shall be exempt from 72.4 the vehicle requirements of this section and the licensing 72.5 requirements of section 171.321, if the vehicle is properly 72.6 registered and insured and operated by an employee or agent of a 72.7 school district with a valid driver's license. 72.8 Sec. 40. Minnesota Statutes 1994, section 171.01, 72.9 subdivision 21, is amended to read: 72.10 Subd. 21. [SCHOOL BUS.] "School bus" means a motor vehicle 72.11 used to transport pupils to or from a school defined in section 72.12 120.101, or to or from school-related activities, by the school 72.13 or a school district or by someone under an agreement with the 72.14 school or a school district. A school bus does not include a 72.15 motor vehicle transporting children to or from school for which 72.16 parents or guardians receive direct compensation from a school 72.17 district, a motor coach operating under charter carrier 72.18 authority,ora transit bus providing services as defined in 72.19 section 174.22, subdivision 7, or a vehicle otherwise qualifying 72.20 as a type III vehicle under section 169.01, subdivision 6, 72.21 paragraph (5), when the vehicle is properly registered and 72.22 insured and being driven by an employee or agent of a school 72.23 district for nonscheduled transportation. 72.24 Sec. 41. Minnesota Statutes 1994, section 171.18, 72.25 subdivision 1, is amended to read: 72.26 Subdivision 1. [OFFENSES.] The commissioner may suspend 72.27 the license of a driver without preliminary hearing upon a 72.28 showing by department records or other sufficient evidence that 72.29 the licensee: 72.30 (1) has committed an offense for which mandatory revocation 72.31 of license is required upon conviction; 72.32 (2) has been convicted by a court for violating a provision 72.33 of chapter 169 or an ordinance regulating traffic and department 72.34 records show that the violation contributed in causing an 72.35 accident resulting in the death or personal injury of another, 72.36 or serious property damage; 73.1 (3) is an habitually reckless or negligent driver of a 73.2 motor vehicle; 73.3 (4) is an habitual violator of the traffic laws; 73.4 (5) is incompetent to drive a motor vehicle as determined 73.5 in a judicial proceeding; 73.6 (6) has permitted an unlawful or fraudulent use of the 73.7 license; 73.8 (7) has committed an offense in another state that, if 73.9 committed in this state, would be grounds for suspension; 73.10 (8) has committed a violation of section 169.444, 73.11 subdivision 2, paragraph (a), within five years of a prior 73.12 conviction under that section; 73.13 (9) has committed a violation of section 171.22, except 73.14 that the commissioner may not suspend a person's driver's 73.15 license based solely on the fact that the person possessed a 73.16 fictitious or fraudulently altered Minnesota identification 73.17 card; 73.18 (10) has failed to appear in court as provided in section 73.19 169.92, subdivision 4; or 73.20 (11) has failed to report a medical condition that, if 73.21 reported, would have resulted in cancellation of driving 73.22 privileges. 73.23 However, an action taken by the commissioner under clause 73.24 (2) or (5) must conform to the recommendation of the court when 73.25 made in connection with the prosecution of the licensee. 73.26 Sec. 42. Minnesota Statutes 1994, section 171.321, 73.27 subdivision 3, is amended to read: 73.28 Subd. 3. [STUDY OF APPLICANT.] (a) Before issuing or 73.29 renewing a school bus endorsement, the commissioner shall 73.30 conduct a criminal and driver's license records check of the 73.31 applicant. The commissioner may also conduct the check at any 73.32 time while a person is so licensed. The check shall consist of 73.33 a criminal records check of the state criminal records 73.34 repository and a check of the driver's license records system. 73.35 If the applicant has resided in Minnesota for less than five 73.36 years, the check shall also include a criminal records check of 74.1 information from the state law enforcement agencies in the 74.2 states where the person resided during the five years before 74.3 moving to Minnesota, and of the national criminal records 74.4 repository including the criminal justice data communications 74.5 network. The applicant's failure to cooperate with the 74.6 commissioner in conducting the records check is reasonable cause 74.7 to deny an application or cancel a school bus endorsement. The 74.8 commissioner may not release the results of the records check to 74.9 any person except the applicant. 74.10 (b) The commissioner may issue to an otherwise qualified 74.11 applicant a temporary school bus endorsement, effective for no 74.12 more than 120 days, upon presentation of (1) an affidavit by the 74.13 applicant that the applicant has not been convicted of a 74.14 disqualifying offense and (2) a criminal history check from each 74.15 state of residence for the previous five years. The criminal 74.16 history check may be conducted and prepared by any public or 74.17 private source acceptable to the commissioner. 74.18 Sec. 43. Minnesota Statutes 1994, section 171.321, 74.19 subdivision 4, is amended to read: 74.20 Subd. 4. [TRAINING.] No person shall drive a class A, B, 74.21 C, or D school bus when transporting school children to or from 74.22 school or upon a school-related trip or activity without having 74.23 demonstrated sufficient skills and knowledge to transport 74.24 students in a safe and legal manner. A bus driver must have 74.25 training or experience that allows the driver to meet at least 74.26 the following competencies: 74.27 (1) safely operate the type of school bus the driver will 74.28 be driving; 74.29 (2) understand student behavior, including issues relating 74.30 to students with disabilities; 74.31 (3)ensureencourage orderly conduct of students on the bus 74.32 and handle incidents of misconduct appropriately; 74.33 (4) know and understand relevant laws, rules of the road, 74.34 and local school bus safety policies; 74.35 (5) handle emergency situations; and 74.36 (6) safely load and unload students; and75.1(7) demonstrate proficiency in first aid and75.2cardiopulmonary resuscitation procedures. 75.3 The commissioner of public safety, in conjunction with the 75.4 commissioner of education, shall develop a comprehensive model 75.5 school bus driver training program and model assessments for 75.6 school bus driver training competencies, which are not subject 75.7 to chapter 14. A school district may use alternative 75.8 assessments for bus driver training competencies with the 75.9 approval of the commissioner of public safety. 75.10 Sec. 44. Minnesota Statutes 1994, section 171.321, 75.11 subdivision 5, is amended to read: 75.12 Subd. 5. [ANNUAL EVALUATION.] A schooldistrictdistrict's 75.13 pupil transportation safety director, the chief administrator of 75.14 a nonpublic school, or a private contractor shallevaluate each75.15bus drivercertify annually toassurethe commissioner of public 75.16 safety that, at minimum, each school bus drivercontinues to75.17meetmeets the school bus driver training competencies under 75.18 subdivision 4 and shall report the number of hours of in-service 75.19 training completed by each driver. A school district, nonpublic 75.20 school, or private contractor also shall provideat least eight75.21hours ofin-service training annually to each school bus 75.22 driver.As part of the annual evaluation,A district, nonpublic 75.23 school, or private contractor also shall check the license of 75.24 each person who transports students for the district with the 75.25 National Drivers Register or the department of public 75.26 safety annually.A school district, nonpublic school, or75.27private contractor shall certify annually to the commissioner of75.28public safety that each driver has received eight hours of75.29in-service training and has met the training competenciesThe 75.30 school board must approve and forward the competency 75.31 certification and in-service report to the commissioner of 75.32 public safety. 75.33 Sec. 45. Minnesota Statutes 1994, section 171.3215, 75.34 subdivision 1, is amended to read: 75.35 Subdivision 1. [DEFINITIONS.] (a) As used in this section, 75.36 the following terms have the meanings given them. 76.1 (b) "School bus driver" means a person possessing a school 76.2 bus driver's endorsement on a valid Minnesota driver's license 76.3 or a person possessing a valid Minnesota driver's license who 76.4 drives a vehicle with a seating capacity of ten or less persons 76.5 used as a school bus. 76.6 (c) "Disqualifying offense" includes any felony offense, 76.7 any misdemeanor, gross misdemeanor, or felony violation of 76.8 chapter 152, or any violation under section 609.3451, 609.746, 76.9 subdivision 1, or 617.23,or while driving, operating, or being 76.10 in physical control of a school bus or a Head Start bus, a 76.11fourth moving violation within a three-year periodviolation of 76.12 section 169.121, 169.129, or a similar statute or ordinance from 76.13 another state. 76.14 (d) "Head Start bus driver" means a person possessing a 76.15 valid Minnesota driver's license: 76.16 (1) with a passenger endorsement, who drives a Head Start 76.17 bus; 76.18 (2) with a school bus driver's endorsement, who drives a 76.19 Head Start bus; or 76.20 (3) who drives a vehicle with a seating capacity of ten or 76.21 fewer persons used as a Head Start bus. 76.22 Sec. 46. Minnesota Statutes 1994, section 171.3215, 76.23 subdivision 2, is amended to read: 76.24 Subd. 2. [CANCELLATION FOR DISQUALIFYINGOFFENSEAND OTHER 76.25 OFFENSES.] Within ten days of receiving notice under section 76.26 631.40, subdivision 1a, or otherwise receiving notice for a 76.27 nonresident driver, that a school bus driver has been convicted 76.28 of a disqualifying offense, the commissioner shall permanently 76.29 cancel the school bus driver's endorsement on the offender's 76.30 driver's license and in the case of a nonresident, the driver's 76.31 privilege to operate a school bus in Minnesota. A school bus 76.32 driver whose endorsement or privilege to operate a school bus in 76.33 Minnesota has been permanently canceled may not apply for 76.34 reinstatement. Within ten days of receiving notice under 76.35 section 631.40, subdivision 1a, or otherwise receiving notice 76.36 for a nonresident driver, that a school bus driver has been 77.1 convicted of a gross misdemeanor, or a violation of section 77.2 169.121or, 169.129, or a similar statute or ordinance from 77.3 another state, and within ten days of revoking a school bus 77.4 driver's license under section 169.123, the commissioner shall 77.5 cancel the school bus driver's endorsement on the offender's 77.6 driver's license or the nonresident's privilege to operate a 77.7 school bus in Minnesota for five years. After five years, a 77.8 school bus driver may apply to the commissioner for 77.9 reinstatement. Even after five years, cancellation of a school 77.10 bus driver's endorsement or a nonresident's privilege to operate 77.11 a school bus in Minnesota for aconvictionviolation under 77.12 section 169.121, 169.123,or169.129, or a similar statute or 77.13 ordinance from another state, shall remain in effect until the 77.14 driver provides proof of successful completion of an alcohol or 77.15 controlled substance treatment program. For a first offense, 77.16 proof of completion is required only if treatment was ordered as 77.17 part of a chemical use assessment. Within ten days of receiving 77.18 notice under section 631.40, subdivision 1a, or otherwise 77.19 receiving notice for a nonresident driver, that a school bus 77.20 driver has been convicted of a fourth moving violation in the 77.21 last three years, the commissioner shall cancel the school bus 77.22 driver's endorsement on the offender's driver's license or the 77.23 nonresident's privilege to operate a school bus in Minnesota 77.24 until one year has elapsed since the last conviction. A school 77.25 bus driver who has no new convictions after one year may apply 77.26 for reinstatement. Upon canceling the offender's school bus 77.27 driver's endorsement, the commissioner shall immediately notify 77.28 the licensed offender of the cancellation in writing, by 77.29 depositing in the United States post office a notice addressed 77.30 to the licensed offender at the licensed offender's last known 77.31 address, with postage prepaid thereon. 77.32 Sec. 47. Minnesota Statutes 1994, section 171.3215, 77.33 subdivision 3, is amended to read: 77.34 Subd. 3. [BACKGROUND CHECK.] Before issuing or renewing a 77.35 driver's license with a school bus driver's endorsement, the 77.36 commissioner shall conduct an investigation to determine if the 78.1 applicant has been convicted of committing a disqualifying 78.2 offense, four moving violations in the previous three years, a 78.3 violation of section 169.121or, 169.129, or a similar statute 78.4 or ordinance from another state, a gross misdemeanor, or if the 78.5 applicant's driver's license has been revoked under section 78.6 169.123. The commissioner shall not issue a new bus driver's 78.7 endorsement and shall not renew an existing bus driver's 78.8 endorsement if the applicant has been convicted of committing a 78.9 disqualifying offense. The commissioner shall not issue a new 78.10 bus driver's endorsement and shall not renew an existing bus 78.11 driver's endorsement if, within the previous five years, the 78.12 applicant has been convicted of committing a violation of 78.13 section 169.121or, 169.129, or a similar statute or ordinance 78.14 from another state, a gross misdemeanor, or if the applicant's 78.15 driver's license has been revoked under section 169.123, or if, 78.16 within the previous three years, the applicant has been 78.17 convicted of four moving violations. An applicant who has been 78.18 convicted of violating section 169.121or, 169.129, or a similar 78.19 statute or ordinance from another state, or who has had a 78.20 license revocation under section 169.123 within the previous ten 78.21 years must show proof of successful completion of an alcohol or 78.22 controlled substance treatment program in order to receive a bus 78.23 driver's endorsement. For a first offense, proof of completion 78.24 is required only if treatment was ordered as part of a chemical 78.25 use assessment. A school district or contractor that employs a 78.26 nonresident school bus driver must conduct a background check of 78.27 the employee's driving record and criminal history in both 78.28 Minnesota and the driver's state of residence. Convictions for 78.29 disqualifying offenses, gross misdemeanors, a fourth moving 78.30 violation within the previous three years, or violations of 78.31 section 169.121, 169.129, or a similar statute or ordinance in 78.32 another state, must be reported to the department of public 78.33 safety. 78.34 Sec. 48. [604A.015] [SCHOOL BUS DRIVER IMMUNITY FROM 78.35 LIABILITY.] 78.36 A school bus driver who, while on duty, provides emergency 79.1 care, advice, or assistance at the scene of an emergency or 79.2 during transit to a location where professional medical care can 79.3 be rendered, is not liable in ordinary negligence, for any civil 79.4 damages as a result of acts or omissions to the person to whom 79.5 assistance is rendered by the school bus driver in rendering the 79.6 emergency care, advice, or assistance. For the purposes of this 79.7 section, the scene of an emergency is an area outside the 79.8 confines of a hospital or other institution that has hospital 79.9 facilities, or an office of a person licensed to practice one or 79.10 more of the healing arts under chapter 147, 148, 150A, or 153. 79.11 Sec. 49. Minnesota Statutes 1994, section 631.40, 79.12 subdivision 1a, is amended to read: 79.13 Subd. 1a. [CERTIFIED COPY OF DISQUALIFYING OFFENSE 79.14 CONVICTIONS SENT TO PUBLIC SAFETY AND SCHOOL DISTRICTS.] When a 79.15 person is convicted of committing a disqualifying offense, as 79.16 defined in section 171.3215, subdivision 1, a gross misdemeanor, 79.17 a fourth moving violation within a three-year period, or a 79.18 violation of section 169.121 or 169.129, the court shall 79.19 determine whether the offender is a school bus driver as defined 79.20 in section 171.3215, subdivision 1, whether the offender 79.21 possesses a school bus driver's endorsement on the offender's 79.22 driver's license and in what school districts the offender 79.23 drives a school bus. If the offender is a school bus driver or 79.24 possesses a school bus driver's endorsement, the court 79.25 administrator shall send a certified copy of the conviction to 79.26 the department of public safety and to the school districts in 79.27 which the offender drives a school bus within ten days after the 79.28 conviction. 79.29 Sec. 50. [INTERDISTRICT DESEGREGATION TRANSPORTATION 79.30 GRANTS.] 79.31 A district that provides transportation of pupils between 79.32 resident and nonresident districts for desegregation purposes 79.33 may apply to the commissioner of education for a grant to cover 79.34 the additional costs of transportation. The commissioner must 79.35 develop the form and manner of applications, the criteria to be 79.36 used to determine when transportation is for desegregation 80.1 purposes, and the accounting procedure to be used to determine 80.2 excess costs. In determining the grant amount, the commissioner 80.3 must consider other revenue received by the district for 80.4 transportation for desegregation purposes. 80.5 Sec. 51. [APPROPRIATIONS.] 80.6 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 80.7 indicated in this section are appropriated from the general fund 80.8 to the department of education for the fiscal years designated. 80.9 Subd. 2. [TRANSPORTATION AID.] For transportation aid 80.10 according to Minnesota Statutes, section 124.225: 80.11 $145,715,000 ..... 1996 80.12 $ 22,001,000 ..... 1997 80.13 The 1996 appropriation includes $21,038,000 for 1995 and 80.14 $124,677,000 for 1996. 80.15 The 1997 appropriation includes $22,001,000 for 1996 and 80.16 $-0- for 1997. 80.17 Subd. 3. [TRANSPORTATION SAFETY.] For student 80.18 transportation safety aid according to Minnesota Statutes, 80.19 section 124.225, subdivision 8m: 80.20 $1,445,000 ..... 1996 80.21 $1,290,000 ..... 1997 80.22 The 1996 appropriation includes $368,000 for 1995 and 80.23 $1,077,000 for 1996. 80.24 The 1997 appropriation includes $190,000 for 1996 and 80.25 $1,110,000 for 1997. 80.26 Subd. 4. [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 80.27 transportation of pupils attending post-secondary institutions 80.28 according to Minnesota Statutes, section 123.3514, or for 80.29 transportation of pupils attending nonresident districts 80.30 according to Minnesota Statutes, section 120.062: 80.31 $ 92,000 ..... 1996 80.32 $102,000 ..... 1997 80.33 Any balance remaining in the first year does not cancel but 80.34 is available in the second year. 80.35 Subd. 5. [RURAL COMPUTERIZED TRANSPORTATION ROUTING PILOT 80.36 PROJECT.] For a grant to independent school district No. 2148, 81.1 Blue Earth Area, for equipment and software to develop a 81.2 computerized school bus routing and mapping system: 81.3 $25,000 ..... 1996 81.4 The grantee district shall cooperate with at least two 81.5 other school districts in developing and implementing the system. 81.6 Subd. 6. [WIDE AREA TRANSPORTATION SERVICE PILOT PROJECT.] 81.7 For a wide area transportation service pilot project: 81.8 $250,000 ..... 1996 81.9 The purpose of the project is to pilot the use of 81.10 computerized mapping and scheduling programs for school 81.11 districts to jointly provide transportation services for 81.12 low-incidence programs in the metropolitan area. These services 81.13 include, but are not limited to, transportation for special 81.14 education, nonpublic pupils, results-oriented chartered schools, 81.15 enrollment options programs, area learning center programs and 81.16 desegregation programs. The department shall work with 81.17 representatives of the affected programs, transportation 81.18 managers from both metropolitan and rural districts, and the 81.19 metropolitan council. The department shall contract for 81.20 services as appropriate. The project may consider the 81.21 relationship of education transportation with transportation 81.22 services provided by noneducation agencies. This appropriation 81.23 is available until June 30, 1997. 81.24 Subd. 7. [INTERDISTRICT DESEGREGATION TRANSPORTATION 81.25 GRANT.] For grants according to section 50: 81.26 $300,000 ..... 1996 81.27 $630,000 ..... 1997 81.28 Subd. 8. [TARGETED NEEDS TRANSPORTATION AID.] For aid 81.29 payments for targeted needs transportation aid according to 81.30 section 24: 81.31 $60,760,000 ..... 1997 81.32 This appropriation is based on an entitlement of 81.33 $71,482,000. 81.34 Sec. 52. [TRANSPORTATION AIDS AND LEVIES; SUSPENSION.] 81.35 Minnesota Statutes 1994, sections 124.225, subdivisions 1, 81.36 3a, 7a, 7b, 7d, 7e, 8a, 8k, 8m, and 10; and 124.226, 82.1 subdivisions 1, 2, 3a, 4, 5, 6, 7, and 8, do not apply to aids 82.2 payable in fiscal years 1997 and 1998 or to levies made in 1995 82.3 and 1996 for taxes payable in 1996 and 1997. 82.4 Sec. 53. [EFFECTIVE DATE.] 82.5 Sections 6 to 9 and 29 to 49 are effective the day 82.6 following final enactment. 82.7 Section 12 is effective beginning with taxes payable in 82.8 1996 for fiscal year 1997. 82.9 ARTICLE 3 82.10 SPECIAL PROGRAMS 82.11 Section 1. Minnesota Statutes 1994, section 120.17, 82.12 subdivision 3a, is amended to read: 82.13 Subd. 3a. [SCHOOL DISTRICT OBLIGATIONS.] Every district 82.14 shall ensure that: 82.15 (1) all students with disabilities are provided the special 82.16 instruction and services which are appropriate to their needs. 82.17 Where the individual education plan team has determined 82.18 appropriate goals and objectives based on the student's needs, 82.19 including the extent to which the student can be included in the 82.20 least restrictive environment, and where there are essentially 82.21 equivalent and effective instruction, related services, or 82.22 assistive technology devices available to meet the student's 82.23 needs, cost to the school district may be among the factors 82.24 considered by the team in choosing how to provide the 82.25 appropriate services, instruction, or devices that are to be 82.26 made part of the student's individual education plan. The 82.27 student's needs and the special education instruction and 82.28 services to be provided shall be agreed upon through the 82.29 development of an individual education plan. The plan shall 82.30 address the student's need to develop skills to live and work as 82.31 independently as possible within the community. By grade 9 or 82.32 age 14, the plan shall address the student's needs for 82.33 transition from secondary services to post-secondary education 82.34 and training, employment, community participation, recreation, 82.35 and leisure and home living. The plan must include a statement 82.36 of the needed transition services, including a statement of the 83.1 interagency responsibilities or linkages or both before 83.2 secondary services are concluded; 83.3 (2) children with a disability under age five and their 83.4 families are provided special instruction and services 83.5 appropriate to the child's level of functioning and needs; 83.6 (3) children with a disability and their parents or 83.7 guardians are guaranteed procedural safeguards and the right to 83.8 participate in decisions involving identification, assessment 83.9 and educational placement of children with a disability; 83.10 (4) to the maximum extent appropriate, children with a 83.11 disability, including those in public or private institutions or 83.12 other care facilities, are educated with children who are not 83.13 disabled, and that special classes, separate schooling, or other 83.14 removal of children with a disability from the regular 83.15 educational environment occurs only when and to the extent that 83.16 the nature or severity of the disability is such that education 83.17 in regular classes with the use of supplementary services cannot 83.18 be achieved satisfactorily; 83.19 (5) in accordance with recognized professional standards, 83.20 testing and evaluation materials, and procedures utilized for 83.21 the purposes of classification and placement of children with a 83.22 disability are selected and administered so as not to be 83.23 racially or culturally discriminatory; and 83.24 (6) the rights of the child are protected when the parents 83.25 or guardians are not known or not available, or the child is a 83.26 ward of the state. 83.27 Sec. 2. Minnesota Statutes 1994, section 120.17, 83.28 subdivision 3b, is amended to read: 83.29 Subd. 3b. [PROCEDURES FOR DECISIONS.] Every district shall 83.30 utilize at least the following procedures for decisions 83.31 involving identification, assessment, and educational placement 83.32 of children with a disability: 83.33 (a) Parents and guardians shall receive prior written 83.34 notice of: 83.35 (1) any proposed formal educational assessment or proposed 83.36 denial of a formal educational assessment of their child; 84.1 (2) a proposed placement of their child in, transfer from 84.2 or to, or denial of placement in a special education program; or 84.3 (3) the proposed provision, addition, denial or removal of 84.4 special education services for their child; 84.5 (b) The district shall not proceed with the initial formal 84.6 assessment of a child, the initial placement of a child in a 84.7 special education program, or the initial provision of special 84.8 education services for a child without the prior written consent 84.9 of the child's parent or guardian. The refusal of a parent or 84.10 guardian to consent may be overridden by the decision in a 84.11 hearing held pursuant to clause (e) at the district's 84.12 initiative; 84.13 (c) Parents and guardians shall have an opportunity to meet 84.14 with appropriate district staff in at least one conciliation 84.15 conference, mediation, or other method of alternative dispute 84.16 resolution that the parties agree to, if they object to any 84.17 proposal of which they are notified pursuant to clause (a). The 84.18 conciliation process or other form of alternative dispute 84.19 resolution shall not be used to deny or delay a parent or 84.20 guardian's right to a due process hearing. If the parent or 84.21 guardian refuses efforts by the district to conciliate the 84.22 dispute with the school district, the requirement of an 84.23 opportunity for conciliation or other alternative dispute 84.24 resolution shall be deemed to be satisfied;. Notwithstanding 84.25 other law, in any proceeding following a conciliation 84.26 conference, the school district must not offer a conciliation 84.27 conference memorandum into evidence, except for any portions 84.28 that describe the district's final proposed offer of service. 84.29 Otherwise, with respect to forms of dispute resolution, 84.30 mediation, or conciliation, Minnesota Rule of Evidence 408 84.31 applies. The department of education may reimburse the 84.32 districts or directly pay the costs of lay advocates, not to 84.33 exceed $150 per dispute, used in conjunction with alternative 84.34 dispute resolution. 84.35 (d) The commissioner shall establish a mediation process to 84.36 assist parents, school districts, or other parties to resolve 85.1 disputes arising out of the identification, assessment, or 85.2 educational placement of children with a disability. The 85.3 mediation process must be offered as an informal alternative to 85.4 the due process hearing provided under clause (e), but must not 85.5 be used to deny or postpone the opportunity of a parent or 85.6 guardian to obtain a due process hearing. 85.7 (e) Parents, guardians, and the district shall have an 85.8 opportunity to obtain an impartial due process hearing initiated 85.9 and conducted by and in the school district responsible for 85.10 assuring that an appropriate program is provided in accordance 85.11 with state board rules, if the parent or guardian continues to 85.12 object to: 85.13 (1) a proposed formal educational assessment or proposed 85.14 denial of a formal educational assessment of their child; 85.15 (2) the proposed placement of their child in, or transfer 85.16 of their child to a special education program; 85.17 (3) the proposed denial of placement of their child in a 85.18 special education program or the transfer of their child from a 85.19 special education program; 85.20 (4) the proposed provision or addition of special education 85.21 services for their child; or 85.22 (5) the proposed denial or removal of special education 85.23 services for their child. 85.24At least five calendarWithin five business daysbefore85.25 after the request for a hearing, or as directed by the hearing 85.26 officer, the objecting party shall provide the other party with 85.27 a brief written statement of particulars of the objectionand, 85.28 the reasons for the objection, and the specific remedies sought. 85.29 The other party shall provide the objecting party with a written 85.30 response to the statement of objections within five business 85.31 days of receipt of the statement. 85.32 The hearing shall take place before an impartial hearing 85.33 officer mutually agreed to by the school board and the parent or 85.34 guardian. If the school board and the parent or guardian are 85.35 unable to agree on a hearing officer, the school board shall 85.36 request the commissioner to appoint a hearing officer. The 86.1 hearing officer shall not be a school board member or employee 86.2 of the school district where the child resides or of the child's 86.3 school district of residence, an employee of any other public 86.4 agency involved in the education or care of the child, or any 86.5 person with a personal or professional interest which would 86.6 conflict with the person's objectivity at the hearing. A person 86.7 who otherwise qualifies as a hearing officer is not an employee 86.8 of the district solely because the person is paid by the 86.9 district to serve as a hearing officer. If the hearing officer 86.10 requests an independent educational assessment of a child, the 86.11 cost of the assessment shall be at district expense. The 86.12 proceedings shall be recorded and preserved, at the expense of 86.13 the school district, pending ultimate disposition of the action. 86.14 (f) The decision of the hearing officer pursuant to clause 86.15 (e) shall be rendered not more than 45 calendar days from the 86.16 date of the receipt of the request for the hearing. A hearing 86.17 officer may grant specific extensions of time beyond the 45-day 86.18 period at the request of either party. The decision of the 86.19 hearing officer shall be binding on all parties unless appealed 86.20 to the hearing review officer by the parent, guardian, or the 86.21 school board of the district where the child resides pursuant to 86.22 clause (g). 86.23 The local decision shall: 86.24 (1) be in writing; 86.25 (2) state the controlling facts upon which the decision is 86.26 made in sufficient detail to apprise the parties and the hearing 86.27 review officer of the basis and reason for the decision; 86.28 (3) state whether the special education program or special 86.29 education services appropriate to the child's needs can be 86.30 reasonably provided within the resources available to the 86.31 responsible district or districts; 86.32 (4) state the amount and source of any additional district 86.33 expenditure necessary to implement the decision; and 86.34 (5) be based on the standards set forth in subdivision 3a 86.35 and the rules of the state board. 86.36 (g) Any local decision issued pursuant to clauses (e) and 87.1 (f) may be appealed to the hearing review officer within 30 87.2 calendar days of receipt of that written decision, by the 87.3 parent, guardian, or the school board of the district 87.4 responsible for assuring that an appropriate program is provided 87.5 in accordance with state board rules. 87.6 If the decision is appealed, a written transcript of the 87.7 hearing shall be made by the school district and shall be 87.8 accessible to the parties involved within five calendar days of 87.9 the filing of the appeal. The hearing review officer shall 87.10 issue a final independent decision based on an impartial review 87.11 of the local decision and the entire record within 30 calendar 87.12 days after the filing of the appeal. The hearing review officer 87.13 shall seek additional evidence if necessary and may afford the 87.14 parties an opportunity for written or oral argument; provided 87.15 any hearing held to seek additional evidence shall be an 87.16 impartial due process hearing but shall be deemed not to be a 87.17 contested case hearing for purposes of chapter 14. The hearing 87.18 review officer may grant specific extensions of time beyond the 87.19 30-day period at the request of any party. 87.20 The final decision shall: 87.21 (1) be in writing; 87.22 (2) include findings and conclusions; and 87.23 (3) be based upon the standards set forth in subdivision 3a 87.24 and in the rules of the state board. 87.25 (h) The decision of the hearing review officer shall be 87.26 final unless appealed by the parent or guardian or school board 87.27 to the court of appeals. The judicial review shall be in 87.28 accordance with chapter 14. 87.29 (i) The commissioner of education shall select an 87.30 individual who has the qualifications enumerated in this 87.31 paragraph to serve as the hearing review officer: 87.32 (1) the individual must be knowledgeable and impartial; 87.33 (2) the individual must not have a personal interest in or 87.34 specific involvement with the student who is a party to the 87.35 hearing; 87.36 (3) the individual must not have been employed as an 88.1 administrator by the district that is a party to the hearing; 88.2 (4) the individual must not have been involved in the 88.3 selection of the administrators of the district that is a party 88.4 to the hearing; 88.5 (5) the individual must not have a personal, economic, or 88.6 professional interest in the outcome of the hearing other than 88.7 the proper administration of the federal and state laws, rules, 88.8 and policies; 88.9 (6) the individual must not have substantial involvement in 88.10 the development of a state or local policy or procedures that 88.11 are challenged in the appeal; and 88.12 (7) the individual is not a current employee or board 88.13 member of a Minnesota public school district, education 88.14 district, intermediate unit or regional education agency, the 88.15 state department of education, the state board of education, or 88.16 a parent advocacy organization or group. 88.17 (j) In all appeals, the parent or guardian of the pupil 88.18 with a disability or the district that is a party to the hearing 88.19 may challenge the impartiality or competence of the proposed 88.20 hearing review officer by applying to thestate board of88.21educationhearing review officer. 88.22 (k) Pending the completion of proceedings pursuant to this 88.23 subdivision, unless the district and the parent or guardian of 88.24 the child agree otherwise, the child shall remain in the child's 88.25 current educational placement and shall not be denied initial 88.26 admission to school. 88.27 (l) The child's school district of residence, a resident 88.28 district, and providing district shall receive notice of and may 88.29 be a party to any hearings or appeals under this subdivision. 88.30 (m) A school district is not liable for harmless technical 88.31 violations of this subdivision or rules implementing this 88.32 subdivision if the school district can demonstrate on a 88.33 case-by-case basis that the violations did not harm the 88.34 student's educational progress or the parent or guardian's right 88.35 to notice, participation, or due process. 88.36 (n) Within ten calendar days after appointment, the hearing 89.1 officer shall schedule and hold a prehearing conference. At 89.2 that conference, or later, the hearing officer may take any 89.3 appropriate action that a court might take under Rule 16 of 89.4 Minnesota Rules of Civil Procedure including, but not limited 89.5 to, scheduling, jurisdiction, and listing witnesses including 89.6 expert witnesses. 89.7 (o) A hearing officer or hearing review officer appointed 89.8 under this subdivision shall be deemed to be an employee of the 89.9 state under section 3.732 for the purposes of section 3.736 only. 89.10 (p) In order to be eligible for selection, hearing officers 89.11 and hearing review officers shall participate in training and 89.12 follow procedures as designated by the commissioner. 89.13 Sec. 3. Minnesota Statutes 1994, section 120.17, is 89.14 amended by adding a subdivision to read: 89.15 Subd. 3d. [INTERAGENCY SERVICES.] If at the time of 89.16 initial referral for an educational assessment, or a 89.17 reassessment, the school district determines that a child with 89.18 disabilities who is age 3 through 21 may be eligible for 89.19 interagency services, the district may request that the county 89.20 of residence provide a representative to the initial assessment 89.21 or reassessment team meeting or the first individual education 89.22 plan team meeting following the assessment or reassessment. The 89.23 district may request to have a county representative attend 89.24 other individual education plan team meetings when it is 89.25 necessary to facilitate coordination between district and county 89.26 provided services. Upon request from a school district, the 89.27 resident county shall provide a representative to assist the 89.28 individual education plan team in determining the child's 89.29 eligibility for existing health, mental health, or other support 89.30 services administered or provided by the county. The individual 89.31 education plan team and the county representative shall develop 89.32 an interagency plan of care for an eligible child and the 89.33 child's family to coordinate services required under the child's 89.34 individual education plan with county services. The interagency 89.35 plan of care shall include appropriate family information with 89.36 the consent of the family, a description of how services will be 90.1 coordinated between the district and county, a description of 90.2 service coordinator responsibilities and services, and a 90.3 description of activities for obtaining third-party payment for 90.4 eligible services, including medical assistance payments. 90.5 Sec. 4. Minnesota Statutes 1994, section 121.8355, 90.6 subdivision 2, is amended to read: 90.7 Subd. 2. [DUTIES.] (a) Each collaborative shall: 90.8 (1) establish, with assistance from families and service 90.9 providers, clear goals for addressing the health, developmental, 90.10 educational, and family-related needs of children and youth and 90.11 use outcome-based indicators to measure progress toward 90.12 achieving those goals; 90.13 (2) establish a comprehensive planning process that 90.14 involves all sectors of the community, identifies local needs, 90.15 and surveys existing local programs; 90.16 (3) integrate service funding sources so that children and 90.17 their families obtain services from providers best able to 90.18 anticipate and meet their needs; 90.19 (4) coordinate families' services to avoid duplicative and 90.20 overlapping assessment and intake procedures; 90.21 (5) focus primarily on family-centered services; 90.22 (6) encourage parents and volunteers to actively 90.23 participate by using flexible scheduling and actively recruiting 90.24 volunteers; 90.25 (7) provide services in locations that are readily 90.26 accessible to children and families; 90.27 (8) use new or reallocated funds to improve or enhance 90.28 services provided to children and their families; 90.29 (9) identify federal, state, and local institutional 90.30 barriers to coordinating services and suggest ways to remove 90.31 these barriers; and 90.32 (10) design and implement an integrated local service 90.33 delivery system for children and their families that coordinates 90.34 services across agencies and is client centered. The delivery 90.35 system shall provide a continuum of services for children birth 90.36 to age 18, or birth through age 21 for individuals with 91.1 disabilities. The collaborative shall describe the community 91.2 plan for serving pregnant women and children from birth to age 91.3 six. 91.4 (b) The outcome-based indicators developed in paragraph 91.5 (a), clause (1), may include the number of low birth weight 91.6 babies, the infant mortality rate, the number of children who 91.7 are adequately immunized and healthy, require out-of-home 91.8 placement or long-term special education services, and the 91.9 number of minor parents. 91.10 Sec. 5. Minnesota Statutes 1994, section 123.3514, 91.11 subdivision 7, is amended to read: 91.12 Subd. 7. [FEES; TEXTBOOKS; MATERIALS.] A post-secondary 91.13 institution that receives reimbursement for a pupil under 91.14 subdivision 6 may not charge that pupil for fees, textbooks, 91.15 materials, support services as defined in section 135A.16, or 91.16 other necessary costs of the course or program in which the 91.17 pupil is enrolled if the charge would be prohibited under 91.18 section 120.74, except for equipment purchased by the pupil that 91.19 becomes the property of the pupil. An institution may require 91.20 the pupil to pay for fees, textbooks, and materials for a course 91.21 taken for post-secondary credit. 91.22 Sec. 6. Minnesota Statutes 1994, section 123.3514, is 91.23 amended by adding a subdivision to read: 91.24 Subd. 7b. [SUPPORT SERVICES.] The postsecondary 91.25 institution shall inform the pupil of the support services 91.26 available at that institution. If the student has an individual 91.27 education plan that provides general education support and 91.28 accommodations, the post-secondary institution shall provide the 91.29 support services as described in the student's IEP and the 91.30 post-secondary institution and the district shall negotiate an 91.31 agreement on the rate to be charged for the services. Nothing 91.32 in this section shall prevent the student from enrolling while 91.33 the agreement is being developed. If the parties cannot agree 91.34 on the services, on application of either party, the 91.35 commissioner shall resolve the dispute in the same manner the 91.36 commissioner fixes tuition rates under section 120.17, 92.1 subdivision 4. The commissioner's decision is binding on both 92.2 parties. 92.3 Sec. 7. Minnesota Statutes 1994, section 125.62, 92.4 subdivision 1, is amended to read: 92.5 Subdivision 1. [ESTABLISHMENT.] A grant program is 92.6 established to assist American Indian people to become teachers 92.7 and to provide additional education for American Indian 92.8 teachers. The state board may award a joint grant to each of 92.9 the following: 92.10 (1) the Duluth campus of the University of Minnesota and 92.11 independent school district No. 709, Duluth; 92.12 (2) Bemidji state university and independent school 92.13 district No. 38, Red Lake; 92.14 (3) Moorhead state university and one of the school 92.15 districts located within the White Earth reservation; and 92.16 (4) Augsburg college, independent school district No. 625, 92.17 St. Paul, and special school district No. 1, Minneapolis. 92.18 Sec. 8. Minnesota Statutes 1994, section 125.62, 92.19 subdivision 7, is amended to read: 92.20 Subd. 7. [LOAN FORGIVENESS.] The loan may be forgiven if 92.21 the recipient is employed as a teacher, as defined in section 92.22 125.12 or 125.17, in an eligible school or program in 92.23 Minnesota.One-fifthOne-fourth of the principal of the 92.24 outstanding loan amount shall be forgiven for each year of 92.25 eligible employment, or a pro rata amount for eligible 92.26 employment during part of a school year, part-time employment as 92.27 a substitute teacher, or other eligible part-time 92.28 teaching. Loans for $2,500 or less may be forgiven at the rate 92.29 of up to $1,250 per year. The following schools and programs 92.30 are eligible for the purposes of loan forgiveness: 92.31 (1) a school or program operated by a school district; 92.32 (2) a tribal contract school eligible to receive aid 92.33 according to section 124.86; 92.34 (3) a head start program; 92.35 (4) an early childhood family education program;or92.36 (5) a program providing educational services to children 93.1 who have not entered kindergarten; or 93.2 (6) a program providing educational enrichment services to 93.3 American Indian students in grades kindergarten through 12. 93.4 If a person has an outstanding loan obtained through this 93.5 program, the duty to make payments of principal and interest may 93.6 be deferred during any time period the person is enrolled at 93.7 least one-half time in an advanced degree program in a field 93.8 that leads to employment by a school district. To defer loan 93.9 obligations, the person shall provide written notification to 93.10 the state board of education and the recipients of the joint 93.11 grant that originally authorized the loan. Upon approval by the 93.12 state board and the joint grant recipients, payments shall be 93.13 deferred. 93.14 The loan forgiveness program, loan deferral, and procedures 93.15 to administer the program shall be approved by the higher 93.16 education coordinating board. 93.17 Sec. 9. Minnesota Statutes 1994, section 126.49, is 93.18 amended by adding a subdivision to read: 93.19 Subd. 2a. [RESOLUTION OR LETTER.] All persons applying for 93.20 a license under this section must submit to the board a 93.21 resolution or letter of support signed by an American Indian 93.22 tribal government or its designee. All persons holding a 93.23 license under this section on the effective date of this section 93.24 must have on file or file with the board a resolution or letter 93.25 of support signed by a tribal government or its designee by 93.26 January 1, 1996, or the next renewal date of the license 93.27 thereafter. 93.28 Sec. 10. Laws 1994, chapter 587, article 3, section 19, 93.29 subdivision 1, is amended to read: 93.30 Subdivision 1. [SPECIAL EDUCATION AID.] $17,500,000 is 93.31 appropriated in fiscal year 1994 from the general fund to the 93.32 department of education for special education aid to school 93.33 districts. This appropriation is available until June 30, 93.34 1995. This amount is added to the appropriations for aid for 93.35 special education programs contained in Laws 1993, chapter 224, 93.36 article 3, section 38, subdivisions 2, 4, 8, 11, and 14. The 94.1 individual appropriations shall be increased by the commissioner 94.2 of finance in the amounts determined by the commissioner of 94.3 education. This amount is appropriated to eliminate the fiscal 94.4 year 1993 deficiencies and eliminate or reduce the fiscal year 94.5 1995 deficiencies in the appropriations in those 94.6 subdivisions. Any amount not needed for these purposes is 94.7 available to eliminate or reduce the fiscal year 1994 94.8 deficiencies in the appropriations in those subdivisions. The 94.9 commissioner of finance shall transfer amounts among the 94.10 appropriations in those subdivisions as determined by the 94.11 department of education. The department must reduce a school 94.12 district's payable 1995 levy limitations by the full amount of 94.13 the aid payments made to the school district according to this 94.14 subdivision. This appropriation shall not be included in 94.15 determining the amount of a deficiency in the special education 94.16 programs for fiscalyearyears 1994 and 1995 for the purpose of 94.17 allocating any excess appropriations to aid or grant programs 94.18 with insufficient appropriations as provided in Minnesota 94.19 Statutes, section 124.14, subdivision 7. Notwithstanding 94.20 Minnesota Statutes, section 124.195, subdivision 10, 100 percent 94.21 of this appropriation must be paid in fiscal years 1994 and 94.22 1995. This appropriation is not to be included in a base budget 94.23 for future fiscal years. 94.24 Sec. 11. [OPTIONS PLUS PILOT PROGRAM.] 94.25 Subdivision 1. [PURPOSE.] A pilot program is established 94.26 to support general education classroom teachers who teach 94.27 children with specific learning disabilities. The goals of the 94.28 pilot program are to: 94.29 (1) increase participation of these children in 94.30 noncategorical programming designed to encourage their maximum 94.31 potential and maintain their self-esteem; 94.32 (2) demonstrate results in measurable educational outcomes; 94.33 (3) provide alternatives to special education that focus on 94.34 children's educational progress and results, respond to the 94.35 individual child, are efficient and cost-effective, and ensure 94.36 the rights of eligible children and their families to due 95.1 process; 95.2 (4) increase general education's ability to educate in a 95.3 manner that decreases the need for pull-out programs for 95.4 students with specific learning disabilities; and 95.5 (5) implement alternative approaches to conflict resolution. 95.6 Subd. 2. [DEFINITIONS.] For the purposes of this section 95.7 the terms defined in this subdivision have the meanings given 95.8 them. 95.9 (a) "Accommodation" means any technique that alters the 95.10 educational setting to enable the child to reach the child's 95.11 maximum potential and to demonstrate more accurately the child's 95.12 knowledge and educational progress. Accommodations may include, 95.13 but are not limited to: preferential seating, paraphrasing of 95.14 information, instructions, practice activities and directions 95.15 provided in a manner consistent with the child's learning style, 95.16 opportunity for increased response time, more frequent 95.17 opportunity for review, extended time to complete assignments 95.18 and tests, larger print for assignments or tests, special study 95.19 sheets, extended or untimed tests, oral testing and answering, 95.20 and use of assistive technology within and outside the 95.21 educational environment. 95.22 (b) "Assistive technology" means any item, piece of 95.23 equipment, or product system, whether acquired commercially off 95.24 the shelf, modified, or customized, that is used to increase, 95.25 maintain, or improve functional capabilities. 95.26 (c) "Competency" means a documented and demonstrated 95.27 attitude, skill, or knowledge base resulting in an ability of 95.28 general education personnel to provide accommodations, 95.29 modifications, and personalized instruction, according to the 95.30 eligible child's individual learning styles, within general 95.31 education environments. 95.32 (d) "Consistently available" means that education personnel 95.33 who demonstrate competency are site-based and designated as a 95.34 resource for the development and use of accommodations, 95.35 modifications, and personalized instruction in general education. 95.36 (e) "Eligible children" means those children who have 96.1 specific learning disabilities or conditions related to these 96.2 disabilities according to recognized professional standards and 96.3 documented by appropriately licensed personnel. 96.4 (f) "Learner plan" means a concise written plan that is 96.5 based on the eligible child's documented specific learning 96.6 disabilities and needs; includes the eligible child's strengths 96.7 that may compensate for those differences and needs; provides 96.8 the child, the child's parent, and all general education 96.9 personnel responsible for direct instruction with information 96.10 that results in clear understanding and subsequent use of 96.11 accommodations, modifications, and personalized instruction; and 96.12 includes methods of evaluating the child's progress that are 96.13 consistent with learning differences, needs, strengths, 96.14 modifications, and accommodations, and are at intervals 96.15 identical to the student population of the school in which the 96.16 child participating in Options Plus is enrolled. 96.17 (g) "Modification" means any technique that alters the 96.18 school work required, makes it different from the school work 96.19 required or other students in the same course, and encourages 96.20 the eligible child to reach the child's maximum potential and 96.21 facilitate educational success. Modifications may include, but 96.22 are not limited to: copies of teacher notes and lesson plans, 96.23 assisted note taking, reduced or altered assignments, increased 96.24 assignments in areas of strength, alternative test formats, 96.25 modified testing, peer assistance, cooperative learning, and 96.26 modified grading such as documentation of progress and results. 96.27 (h) "Parent" means a parent, guardian, or person acting as 96.28 a parent of a child. 96.29 (i) "Personalized instruction" means direct instruction 96.30 designed with knowledge of the child's learning style, 96.31 strengths, and differences, to assist the child to gain in skill 96.32 areas, so the child demonstrates progress toward and outcomes 96.33 necessary to become a successful citizen. 96.34 Subd. 3. [APPLICATION.] (a) An Options Plus applicant must 96.35 be a school district or districts that cooperate for a 96.36 particular purpose. To be eligible for an Options Plus pilot 97.1 program grant, a district or districts must submit an 97.2 application to the commissioner of education in the form and 97.3 manner prescribed by the commissioner. The application must 97.4 describe: 97.5 (1) how the applicant will ensure that eligible children 97.6 receive accommodations, modifications, and personalized 97.7 instruction; 97.8 (2) the methods to be used to develop a learner plan for 97.9 each child participating in the program and to evaluate 97.10 individual progress, outcomes, and cumulative results including 97.11 parent satisfaction; 97.12 (3) the projected number of students participating in the 97.13 program; 97.14 (4) the current and projected level of educator competency 97.15 at each district site where an Options Plus program will be 97.16 established; 97.17 (5) procedures for assessing and determining eligibility of 97.18 students with specific learning disabilities in accordance with 97.19 Minnesota Rules, parts 3525.1325 to 3525.1347; 97.20 (6) procedures for informing the parent and child, as 97.21 appropriate, of all procedural safeguards and dispute resolution 97.22 alternatives available under the Individuals with Disabilities 97.23 Education Act (IDEA), United States Code, title 20, section 1400 97.24 et seq., American with Disabilities Act of 1990 (ADA), United 97.25 States Code, title 42, section 12101 et seq., Rehabilitation Act 97.26 of 1973, United States Code, title 29, section 794, and 97.27 applicable state law; 97.28 (7) alternative dispute resolution methods to be 97.29 implemented if agreed upon by the parent and are instituted in a 97.30 timely manner not to exceed 30 days or in accordance with 97.31 current laws; and 97.32 (8) any additional information required by the commissioner. 97.33 (b) Districts shall continue accounting procedures for 97.34 documenting that federal special education funds are expended 97.35 for child find, identification, and evaluation consistent with 97.36 federal law. A district shall not include children 98.1 participating in the Options Plus program in special education 98.2 child counts or funding formulas. 98.3 Subd. 4. [RIGHTS OF PARENT AND CHILD.] Any child enrolled 98.4 in an Options Plus pilot program may withdraw at any time upon 98.5 written request of the parent or child and seek or reinstate 98.6 eligibility for services under Minnesota Statutes, section 98.7 120.17. If a child who withdraws was previously served through 98.8 an individual education plan under Minnesota Statutes, section 98.9 120.17, the parent shall retain the right to immediately 98.10 reinstate the last agreed upon individual education plan. 98.11 Subd. 5. [USE OF FUNDS.] Options Plus pilot program grants 98.12 shall be used to supplement staff development funding under 98.13 Minnesota Statutes, section 124A.29, to train general education 98.14 classroom teachers to meet the needs of children with specific 98.15 learning disabilities. The training shall result in each 98.16 participating teacher achieving the following competencies: 98.17 (1) understanding and communicating to the parents of the 98.18 child the options available for instruction; 98.19 (2) the ability to assess the learning environment and 98.20 provide the necessary accommodations, modifications, and 98.21 personalized instruction necessary to meet the needs of the 98.22 child; and 98.23 (3) the ability to work collaboratively and in teams with 98.24 other teachers and support and related services staff. 98.25 Subd. 6. [REPORT.] A school district receiving an Options 98.26 Plus pilot program grant shall report to the commissioner of 98.27 education on the educational impact and cost-effectiveness of 98.28 the Options Plus program by February 15, 1997. The commissioner 98.29 shall evaluate the effectiveness of the Options Plus program and 98.30 recommend to the education committees of the legislature by 98.31 February 15, 1998, whether the program should be continued or 98.32 expanded statewide and whether to include other disability areas. 98.33 Sec. 12. [STATE VOCATIONAL SCHOOL PLANNING PROCESS.] 98.34 Subdivision 1. [PLANNING COMMITTEE.] A planning committee 98.35 is established to develop a preliminary plan for a 98.36 state-of-the-art vocational high school in Minnesota to serve 99.1 the needs of students with special vocational interests and 99.2 talents, and to serve as a demonstration site for vocational 99.3 education. The committee shall consist of 21 members. The 99.4 governor, speaker of the house of representatives, and the 99.5 majority leader of the senate shall each appoint seven members. 99.6 The governor's appointments must include the commissioners of 99.7 education and human services or their designees. Members also 99.8 must include potential students and their parents, imaginative 99.9 practicing teachers, high school administrators, representatives 99.10 of business and labor, and community representatives. The 99.11 committee is subject to Minnesota Statutes, section 15.059. 99.12 Subd. 2. [PURPOSES.] The purposes of the planning 99.13 committee are to: 99.14 (1) evaluate the need for a vocational high school, 99.15 including the needs of Minnesota students for vocational 99.16 training and the needs of private sector employers for skilled, 99.17 vocationally trained employees; 99.18 (2) determine the capacity of Minnesota's secondary schools 99.19 to meet this need; 99.20 (3) identify the challenges and opportunities for 99.21 vocational education; 99.22 (4) develop a preliminary plan for a vocational high school 99.23 to meet the identified needs; 99.24 (5) develop a learning signature for a vocational high 99.25 school based on its focus, including educational goals, learning 99.26 organization, anticipated learner results, and staffing and 99.27 staff development; 99.28 (6) describe the anticipated partnerships of the vocational 99.29 school with other secondary educational institutions, 99.30 post-secondary institutions, business and labor, community 99.31 organizations, and students' families; 99.32 (7) develop a technology and equipment plan for the 99.33 proposed school; and 99.34 (8) develop preliminary cost estimates for a vocational 99.35 school. 99.36 Subd. 3. [APPOINTMENTS; MEETINGS.] The planning committee 100.1 must be appointed by July 1, 1995. The committee must begin 100.2 meeting in July 1995. At least some of the committee meetings 100.3 must be held outside the metropolitan area as defined in 100.4 Minnesota Statutes, section 473.121, subdivision 2. 100.5 Subd. 4. [REPORT.] The planning committee shall make a 100.6 report of its work to the education committees of the 100.7 legislature in February 1996. 100.8 Subd. 5. [STAFF; OFFICE SPACE.] The planning committee may 100.9 appoint staff as necessary to assist in its work. The staff are 100.10 members of the unclassified service of the state. The 100.11 commissioner of education shall provide office space for the 100.12 committee staff. 100.13 Sec. 13. [MEXICAN ORIGIN EDUCATION PILOT GRANT PROGRAM.] 100.14 Subdivision 1. [ESTABLISHMENT.] A Mexican origin education 100.15 pilot grant program is established to assist school districts 100.16 and communities in meeting the educational and culturally 100.17 related academic needs of students of Mexican origin. 100.18 Subd. 2. [EXPECTED OUTCOMES.] Grant recipients shall use 100.19 the funds for programs designed to improve the school success of 100.20 students of Mexican origin. Grant proceeds may be used for 100.21 curriculum and staff development, tutoring, mentoring, parent 100.22 involvement, and other programs that are designed to: 100.23 (1) improve student achievement and reduce dropout rates; 100.24 (2) increase student knowledge and understanding of Mexican 100.25 history; 100.26 (3) improve instruction by developing the cultural 100.27 competence skills of teachers and other staff; and 100.28 (4) increase parent involvement in education and the school 100.29 community. 100.30 Subd. 3. [GRANT ELIGIBILITY, APPLICATIONS, AND AWARDS.] 100.31 The commissioner of education shall prescribe the form and 100.32 manner of applications and may award grants to the applicants 100.33 likely to meet the outcomes in subdivision 2. The commissioner 100.34 shall give preference to grant proposals that provide 100.35 collaboration with community resources and a local match. 100.36 Sec. 14. [COMMISSIONERS' DUTIES.] 101.1 Subdivision 1. [ALIGNMENT OF RULES.] The commissioners of 101.2 education, human services, and health shall review current state 101.3 rules and statutes concerning the disability definitions, 101.4 eligibility criteria, assessment and diagnostic practices, 101.5 licensing of service providers, aversive and deprivation 101.6 procedures, and case management procedures for programs and 101.7 services for children with disabilities provided by the 101.8 education and human services systems. The commissioners shall 101.9 report to the education and health and human services committees 101.10 of the legislature by February 15, 1996, on recommendations for 101.11 modifying state rules and statutes and applying for necessary 101.12 federal waivers to improve service delivery and promote 101.13 integration and collaboration between the education and human 101.14 services systems. The commissioners shall include state and 101.15 local program administrators and service providers in the 101.16 process for reviewing the state statutes and rules. 101.17 Sec. 15. [LOCAL TRAINING PROGRAMS.] 101.18 The commissioners of education, human services, and health 101.19 shall jointly develop and implement a training program for local 101.20 staff in school districts and county human services and social 101.21 services agencies who work with children with disabilities and 101.22 their families. Implementation of the training program shall 101.23 begin no later than January 15, 1996. The training shall 101.24 familiarize staff with the disability definitions, eligibility 101.25 criteria, assessment and diagnostic practices, available 101.26 services, and case management procedures of each of the service 101.27 providing systems. The goal of the training is to enable local 101.28 staff to determine if children with disabilities may be eligible 101.29 for interagency services, involve staff from appropriate 101.30 agencies in collaboratively developing a multiagency plan of 101.31 care, reduce duplication and promote service coordination, and 101.32 improve services to children with disabilities and their 101.33 families. 101.34 Sec. 16. [OSSEO LEVY.] 101.35 For 1995 taxes payable in 1996 only, independent school 101.36 district No. 279, Osseo, may levy a tax in an amount not to 102.1 exceed $500,000. The proceeds of this levy must be used to 102.2 provide instructional services for at-risk children. 102.3 Sec. 17. [FEDERAL SPECIAL EDUCATION FUNDS.] 102.4 A school district shall not transfer a special education 102.5 expenditure from a federal revenue source to a state revenue 102.6 source for fiscal year 1995 after March 30, 1995. 102.7 Sec. 18. [COMPREHENSIVE EARLY INTERVENTION PROGRAM FOR 102.8 STUDENTS WITH EMOTIONAL OR BEHAVIORAL DISORDERS.] 102.9 Subdivision 1. [ESTABLISHMENT.] A pilot program is 102.10 established in independent school district No. 624, White Bear 102.11 Lake, to provide comprehensive early intervention services to 102.12 children with emotional or behavioral disorders. The goals of 102.13 the pilot program are to: 102.14 (1) improve learner outcomes for children with emotional or 102.15 behavioral disorders; 102.16 (2) reduce the need for placement of children with 102.17 emotional or behavioral disorders in special education programs 102.18 under Minnesota Statutes, section 120.17; 102.19 (3) reduce the number of school exclusions, expulsions, and 102.20 suspensions; 102.21 (4) reduce the number of children entering the juvenile 102.22 justice system; and 102.23 (5) improve the cost-effectiveness of services for children 102.24 with emotional or behavioral disorders. 102.25 Subd. 2. [APPLICATION; EVALUATION.] (a) To participate in 102.26 the pilot program, the district shall submit an application to 102.27 the commissioner of education in the form and manner prescribed 102.28 by the commissioner. The application shall include a plan for 102.29 developing and implementing a comprehensive early intervention 102.30 program that provides for the following: 102.31 (1) early identification of children who are demonstrating 102.32 characteristics or behavior that may lead to placement in a 102.33 special education program under Minnesota Statutes, section 102.34 120.17, and Minnesota Rules, part 3525.1329; 102.35 (2) flexible early intervention strategies that are 102.36 performance based and may include the school, local mental 103.1 health agencies, the parent, and the community; 103.2 (3) mentoring programs that may include both adult 103.3 community mentors or student peer mentors; 103.4 (4) collaboration with local mental health, social 103.5 services, law enforcement, and nonprofit agencies; 103.6 (5) flexible instructional delivery alternatives that may 103.7 include an extended school year, flexible school days, or 103.8 work-based learning programs; 103.9 (6) extensive parent involvement in developing and 103.10 implementing early intervention strategies, including parent 103.11 training in appropriate intervention skills; and 103.12 (7) technology-based systems for individualized instruction 103.13 and student record management. 103.14 (b) The district shall contract with an independent agency 103.15 for an evaluation of the effectiveness of the pilot program and 103.16 report to the commissioner of education by January 15, 1997. 103.17 Sec. 19. [APPROPRIATIONS.] 103.18 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 103.19 indicated in this section are appropriated from the general fund 103.20 or other named fund to the department of education for the 103.21 fiscal years designated. 103.22 Subd. 2. [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 103.23 For grants to American Indian language and culture education 103.24 programs according to Minnesota Statutes, section 126.54, 103.25 subdivision 1: 103.26 $591,000 ..... 1996 103.27 $591,000 ..... 1997 103.28 The 1996 appropriation includes $88,000 for 1995 and 103.29 $503,000 for 1996. 103.30 The 1997 appropriation includes $88,000 for 1996 and 103.31 $503,000 for 1997. 103.32 Any balance in the first year does not cancel but is 103.33 available in the second year. 103.34 Subd. 3. [AMERICAN INDIAN EDUCATION.] (a) For certain 103.35 American Indian education programs in school districts: 103.36 $175,000 ..... 1996 104.1 $175,000 ..... 1997 104.2 The 1996 appropriation includes $26,000 for 1995 and 104.3 $149,000 for 1996. 104.4 The 1997 appropriation includes $26,000 for 1996 and 104.5 $149,000 for 1997. 104.6 (b) These appropriations are available for expenditure with 104.7 the approval of the commissioner of the department of education. 104.8 (c) The commissioner must not approve the payment of any 104.9 amount to a school district or school under this subdivision 104.10 unless that school district or school is in compliance with all 104.11 applicable laws of this state. 104.12 (d) Up to the following amounts may be distributed to the 104.13 following schools and school districts for each fiscal year: 104.14 $54,800, Pine Point School; $9,800 to independent school 104.15 district No. 166, Cook county; $14,900 to independent school 104.16 district No. 432, Mahnomen; $14,200 to independent school 104.17 district No. 435, Waubun; $42,200 to independent school district 104.18 No. 707, Nett Lake; and $39,100 to independent school district 104.19 No. 38, Red Lake. These amounts must be spent only for the 104.20 benefit of American Indian pupils and to meet established state 104.21 educational standards or statewide requirements. 104.22 (e) Before a district or school can receive money under 104.23 this subdivision, the district or school must submit, to the 104.24 commissioner, evidence that it has complied with the uniform 104.25 financial accounting and reporting standards act, Minnesota 104.26 Statutes, sections 121.904 to 121.917. 104.27 Subd. 4. [AMERICAN INDIAN POST-SECONDARY PREPARATION 104.28 GRANTS.] For American Indian post-secondary preparation grants 104.29 according to Minnesota Statutes, section 124.481: 104.30 $857,000 ..... 1996 104.31 $857,000 ..... 1997 104.32 Any balance in the first year does not cancel but is 104.33 available in the second year. 104.34 Subd. 5. [AMERICAN INDIAN SCHOLARSHIPS.] For American 104.35 Indian scholarships according to Minnesota Statutes, section 104.36 124.48: 105.1 $1,600,000 ..... 1996 105.2 $1,600,000 ..... 1997 105.3 Any unexpended balance remaining in the first year does not 105.4 cancel but is available in the second year. 105.5 Subd. 6. [INDIAN TEACHER PREPARATION GRANTS.] (a) For 105.6 joint grants to assist Indian people to become teachers: 105.7 $190,000 ..... 1996 105.8 $190,000 ..... 1997 105.9 (b) Up to $70,000 each year is for a joint grant to the 105.10 University of Minnesota at Duluth and the Duluth school district. 105.11 (c) Up to $40,000 each year is for a joint grant to each of 105.12 the following: 105.13 (1) Bemidji state university and the Red Lake school 105.14 district; 105.15 (2) Moorhead state university and a school district located 105.16 within the White Earth reservation; and 105.17 (3) Augsburg college, independent school district No. 625, 105.18 St. Paul, and the Minneapolis school district. 105.19 (d) Money not used for students at one location may be 105.20 transferred for use at another location. 105.21 (e) Any balance in the first year does not cancel but is 105.22 available in the second year. 105.23 Subd. 7. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 105.24 school aid according to Minnesota Statutes, section 124.86: 105.25 $238,000 ..... 1996 105.26 $361,000 ..... 1997 105.27 The 1996 appropriation includes $19,000 for 1995 and 105.28 $219,000 for 1996. 105.29 The 1997 appropriation includes $38,000 for 1996 and 105.30 $323,000 for 1997. 105.31 Subd. 8. [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For 105.32 early childhood family education programs at tribal contract 105.33 schools: 105.34 $68,000 ..... 1996 105.35 $68,000 ..... 1997 105.36 Subd. 9. [PART H.] For the department of education's share 106.1 of the state's obligation under Part H: 106.2 $ -0- ..... 1996 106.3 $400,000 ..... 1997 106.4 This appropriation assumes that the departments of health 106.5 and human services will contribute $1,635,000 for the state 106.6 share of Part H costs. 106.7 Subd. 10. [AMERICAN SIGN LANGUAGE; TEACHER EDUCATION 106.8 HEARING.] To assist school districts in educating teachers in 106.9 American sign language: 106.10 $13,000 ..... 1996 106.11 $12,000 ..... 1997 106.12 Any balance in the first year does not cancel but is 106.13 available in the second year. 106.14 Subd. 11. [MEXICAN ORIGIN EDUCATION GRANTS.] For grants 106.15 for a Mexican origin education pilot grant program: 106.16 $50,000 ..... 1996 106.17 $25,000 ..... 1997 106.18 Any balance in the first year does not cancel but is 106.19 available in the second year. 106.20 Subd. 12. [LAY ADVOCATES.] To pay or reimburse lay 106.21 advocates for their time and expense as provided in Minnesota 106.22 Statutes, section 120.17: 106.23 $10,000 ..... 1996 106.24 This appropriation is available until June 30, 1997. 106.25 Subd. 13. [OPTIONS PLUS PILOT GRANTS.] For grants to 106.26 school districts for options plus pilot programs: 106.27 $150,000 ..... 1996 106.28 Each grant shall not exceed $50,000. 106.29 This appropriation is available until June 30, 1997. 106.30 Recipients are encouraged to use other staff development 106.31 resources if available. 106.32 Subd. 14. [VOCATIONAL SCHOOL PLANNING.] For staff costs 106.33 and related expenses for the vocational school planning 106.34 committee: 106.35 $100,000 ..... 1996 106.36 This appropriation is available until June 30, 1997. 107.1 Subd. 15. [SECONDARY VOCATIONAL EDUCATION AID.] For 107.2 secondary vocational education aid according to Minnesota 107.3 Statutes, section 124.573: 107.4 $11,874,000 ..... 1996 107.5 $11,596,000 ..... 1997 107.6 The 1996 appropriation includes $2,017,000 for 1995 and 107.7 $9,857,000 for 1996. 107.8 The 1997 appropriation includes $1,739,000 for 1996 and 107.9 $9,857,000 for 1997. 107.10 Subd. 16. [SCHOOL INTERPRETERS.] For grants for school 107.11 interpreters to upgrade their interpreting/transliterating 107.12 skills and obtain certification: 107.13 $150,000 ..... 1996 107.14 $100,000 ..... 1997 107.15 Up to five percent of this amount may be used for 107.16 administration of this program. 107.17 Any balance in the first year does not cancel but is 107.18 available in the second year. 107.19 Subd. 17. [COMPREHENSIVE EARLY INTERVENTION PROGRAM 107.20 GRANTS.] For a grant to independent school district No. 624, 107.21 White Bear Lake, for a comprehensive early intervention pilot 107.22 program for students with emotional or behavioral disorders: 107.23 $390,000 ..... 1996 107.24 This appropriation is available until June 30, 1997. 107.25 Sec. 20. [EFFECTIVE DATE.] 107.26 Sections 10, 12, and 17 are effective the day following 107.27 final enactment. 107.28 ARTICLE 4 107.29 COMMUNITY PROGRAMS 107.30 Section 1. Minnesota Statutes 1994, section 116J.655, is 107.31 amended to read: 107.32 116J.655 [YOUTH ENTREPRENEURSHIP EDUCATION PROGRAM.] 107.33 The commissioner of trade and economic development shall 107.34 establish a youth entrepreneurship education program to improve 107.35 the academic and entrepreneurial skills of students and aid in 107.36 their transition from school to business creation. The program 108.1 shall strengthen local economies by creating jobs that enable 108.2 citizens to remain in their communities and to foster 108.3 cooperation among educators, economic development professionals, 108.4 business leaders, and representatives of labor. Assistance 108.5 under this section shall be available to new or existing 108.6 student-operated or school-operated businesses that have an 108.7 educational purpose, and provide service or products for 108.8 customers or clients who do not attend or work at the sponsoring 108.9 school. The commissioner may require an equal local match for 108.10 assistance under this section up to the maximum grant amount of 108.11 $20,000. 108.12 Sec. 2. Minnesota Statutes 1994, section 121.702, is 108.13 amended by adding a subdivision to read: 108.14 Subd. 10. [COUNCIL.] "Council" means the governor's 108.15 workforce development council. 108.16 Sec. 3. Minnesota Statutes 1994, section 121.705, is 108.17 amended to read: 108.18 121.705 [YOUTH WORKS GRANTS.] 108.19 Subdivision 1. [APPLICATION.] An eligible organization 108.20 interested in receiving a grant under sections 121.704 to 108.21 121.709 may prepare and submit to the commission, and beginning 108.22 January 1, 1997, the council, an application that complies with 108.23 section 121.706. 108.24 Subd. 2. [GRANT AUTHORITY.] The commission and, beginning 108.25 January 1, 1997, the council shall use any state appropriation 108.26 and any available federal funds, including any grant received 108.27 under federal law, to award grants to establish programs for 108.28 youth works meeting the requirements of section 121.706. At 108.29 least one grant each must be available for a metropolitan 108.30 proposal, a rural proposal, and a statewide proposal. If a 108.31 portion of the suburban metropolitan area is not included in the 108.32 metropolitan grant proposal, the statewide grant proposal must 108.33 incorporate at least one suburban metropolitan area. In 108.34 awarding grants, the commission and, beginning January 1, 1997, 108.35 the council may select at least one residential proposal and one 108.36 nonresidential proposal, provided the proposals meet or exceed 109.1 the criteria in section 121.706. 109.2 Sec. 4. Minnesota Statutes 1994, section 121.706, is 109.3 amended to read: 109.4 121.706 [GRANT APPLICATIONS.] 109.5 Subdivision 1. [APPLICATIONS REQUIRED.] An organization 109.6 seeking federal or state grant money under sections 121.704 to 109.7 121.709 shall prepare and submit to the commission and, 109.8 beginning January 1, 1997, the council an application that meets 109.9 the requirements of this section. The commission and, beginning 109.10 January 1, 1997, the council shall develop, and the applying 109.11 organizations shall comply with, the form and manner of the 109.12 application. 109.13 Subd. 2. [APPLICATION CONTENT.] An applicant on its 109.14 application shall: 109.15 (1) propose a program to provide participants the 109.16 opportunity to perform community service to meet specific unmet 109.17 community needs, and participate in classroom, work-based, and 109.18 service learning; 109.19 (2) assess the community's unmet educational, human, 109.20 environmental, and public safety needs, the resources and 109.21 programs available for meeting those needs, and how young people 109.22 participated in assessing community needs; 109.23 (3) describe the educational component of the program, 109.24 including classroom hours per week, classroom time for 109.25 participants to reflect on the program experience, and 109.26 anticipated academic outcomes related to the service experience; 109.27 (4) describe the work to be performed, the ratio of youth 109.28 participants to crew leaders and mentors, and the expectations 109.29 and qualifications for crew leaders and mentors; 109.30 (5) describe local funds or resources available to meet the 109.31 match requirements of section 121.709; 109.32 (6) describe any funds available for the program from 109.33 sources other than the requested grant; 109.34 (7) describe any agreements with local businesses to 109.35 provide participants with work-learning opportunities and 109.36 mentors; 110.1 (8) describe any agreement with local post-secondary 110.2 educational institutions to offer participants course credits 110.3 for their community service learning experience; 110.4 (9) describe any agreement with a local high school or an 110.5 alternative learning center to provide remedial education, 110.6 credit for community service work and work-based learning, or 110.7 graduate equivalency degrees; 110.8 (10) describe any pay for service or other program delivery 110.9 mechanism that will provide reimbursement for benefits conferred 110.10 or recover costs of services participants perform; 110.11 (11) describe how local resources will be used to provide 110.12 support and assistance for participants to encourage them to 110.13 continue with the program, fulfill the terms of the contract, 110.14 and remain eligible for any postservice benefit; 110.15 (12) describe the arbitration mechanism for dispute 110.16 resolution required under section 121.707, subdivision 2; 110.17 (13) describe involvement of community leaders in 110.18 developing broad-based support for the program; 110.19 (14) describe the consultation and sign-off process to be 110.20 used with any local labor organization representing employees in 110.21 the area engaged in work similar to that proposed for the 110.22 program to ensure that no current employees or available 110.23 employment positions will be displaced by program participants; 110.24 (15) certify to the commission and, beginning January 1, 110.25 1997, the council, and to any certified bargaining 110.26 representatives representing employees of the applying 110.27 organization that the project will not decrease employment 110.28 opportunities that would be available without the project; will 110.29 not displace current employees including any partial 110.30 displacement in the form of reduced hours of work other than 110.31 overtime, wages, employment benefits, or regular seasonal work; 110.32 will not impair existing labor agreements; and will not result 110.33 in the substitution of project funding for preexisting funds or 110.34 sources of funds for ongoing work; 110.35 (16) describe the length of the required service period, 110.36 which may not be less than six months or more than two years, a 111.1 method to incorporate a participant's readiness to advance or 111.2 need for postservice financial assistance into individual 111.3 service requirements, and any opportunity for participating part 111.4 time or in another program; 111.5 (17) describe a program evaluation plan that contains 111.6 cost-effectiveness measures, measures of participant success 111.7 including educational accomplishments, job placements, community 111.8 contributions, and ongoing volunteer activities, outcome 111.9 measures based on a preprogram and postprogram survey of 111.10 community rates of arrest, incarceration, teenage pregnancy, and 111.11 other indicators of youth in trouble, and a list of local 111.12 resources dedicated to reducing these rates; 111.13 (18) describe a three-year financial plan for maintaining 111.14 the program; 111.15 (19) describe the role of local youth in developing all 111.16 aspects of the grant proposal; and 111.17 (20) describe the process by which the local private 111.18 industry council participated in, and reviewed the grant 111.19 application. 111.20 Sec. 5. Minnesota Statutes 1994, section 121.707, 111.21 subdivision 2, is amended to read: 111.22 Subd. 2. [TERMS OF SERVICE.] (a) A participant shall agree 111.23 to perform community service for the period required unless the 111.24 participant is unable to complete the terms of service for the 111.25 reason provided in paragraph (b). 111.26 An agreement to perform community service must be in the 111.27 form of a written contract between the participant and the 111.28 grantee organization. Terms of the contract must include a 111.29 length of service between six months and two years, the amount 111.30 of the postservice benefit earned upon completion of the 111.31 contracted length of service, the participant's education goals 111.32 and commitment, the anticipated date of completion, dismissal 111.33 for cause, including failure to fully participate in the 111.34 education component, and the exclusive right to challenge a 111.35 dismissal for cause through binding arbitration. The arbitrator 111.36 must be chosen jointly by the grantee organization and the 112.1 participant from the community or, if agreement cannot be 112.2 reached, an arbitrator must be determined from a list of 112.3 arbitrators provided by the American Arbitration Association. 112.4 The sole remedy available to the participant through arbitration 112.5 is reinstatement to the program and eligibility for postservice 112.6 benefits. The parent or guardian of a minor shall consent in 112.7 writing to the contract between the participant and the grantee 112.8 organization. 112.9 (b) If the grantee organization releases a participant from 112.10 completing a term of service in a program receiving assistance 112.11 under sections 121.704 to 121.709 for compelling personal 112.12 circumstances as demonstrated by the participant, or if the 112.13 program in which the participant serves does not receive 112.14 continued funding for any reason, the grantee organization may 112.15 provide the participant with that portion of the financial 112.16 assistance described in subdivision 3 that corresponds to the 112.17 quantity of the service obligation completed by the individual. 112.18 If the grantee organization terminates a participant for 112.19 cause or a participant resigns without demonstrating compelling 112.20 personal circumstances under this section, no postservice 112.21 benefit under subdivision 3 may be paid. 112.22 (c) A participant performing part-time service under 112.23 sections 121.701 to 121.710 shall serve at least two weekends 112.24 each month and two weeks during the year. A part-time 112.25 participant shall serve at least 900 hours during a period of 112.26 not more than two years, or three years if enrolled in an 112.27 institution of higher education. A participant performing 112.28 full-time service under sections 121.701 to 121.710 shall serve 112.29 at least 1,700 hours during a period of not less than nine 112.30 months, or more than one year. 112.31 (d) Notwithstanding any other law to the contrary, for 112.32 purposes of tort liability under sections 3.732 and 3.736, while 112.33 participating in a program a participant is an employee of the 112.34 state. 112.35 (e) Participants performing community service in a program 112.36 are not public employees for purposes of chapter 43A, 179A, 197, 113.1 353, or any other law governing hiring or discharging of public 113.2 employees. 113.3 Sec. 6. Minnesota Statutes 1994, section 121.707, 113.4 subdivision 3, is amended to read: 113.5 Subd. 3. [POSTSERVICE BENEFIT.] (a) Each eligible 113.6 organization shall agree to provide to every participantshall113.7 who fulfills the terms of a contract under section 121.707, 113.8 subdivision 2,receivea nontransferable postservice benefit 113.9upon successfully completing the program. The benefit must be 113.10 not less than $4,725 per year of full-time service or prorated 113.11 for part-time service or for partial service of at least 900 113.12 hours. Upon signing a contract under section 121.707, 113.13 subdivision 2, each eligible organization shall deposit funds to 113.14 cover the full amount of postservice benefits obligated, except 113.15 for national education awards that are deposited in the national 113.16 service trust fund. Funds encumbered in fiscal years 1994 and 113.17 1995 for postservice benefits shall be available until the 113.18 participants for whom the funds were encumbered are no longer 113.19 eligible to draw benefits. 113.20 (b) Nothing in this subdivision prevents a grantee 113.21 organization from using funds from nonfederal or nonstate 113.22 sources to increase the value of postservice benefits above the 113.23 value described in paragraph (a). 113.24 (c) The higher education coordinating board shall establish 113.25 an account for depositing funds for postservice 113.26 benefits received from eligible organizations. If a participant 113.27 does not complete the term of service or, upon successful 113.28 completion of the program, does not use a postservice benefit 113.29 according to subdivision 4 within seven yearsafter completing113.30the program, the amount of the postservice benefit shall beused113.31to provide a postservice benefitrefunded to the eligible 113.32 organization or, at the organization's discretion, dedicated to 113.33 another eligible participant. Interest earned on funds 113.34 deposited in the postservice benefit account is appropriated to 113.35 the higher education coordinating board for the costs of 113.36 administering the postservice benefits accounts. 114.1 (d) The state shall provide an additional postservice 114.2 benefit to any participant who successfully completes the 114.3 program. The benefit must be a credit of five points to be 114.4 added to the competitive open rating of a participant who 114.5 obtains a passing grade on a civil service examination under 114.6 chapter 43A. The benefit is available for five years after 114.7 completing the community service. 114.8 Sec. 7. Minnesota Statutes 1994, section 121.707, 114.9 subdivision 4, is amended to read: 114.10 Subd. 4. [USES OF POSTSERVICE BENEFITS.] (a) A postservice 114.11 benefit for a participant provided under subdivision 3, 114.12 paragraph (a), (b), or (c), must be available for seven years 114.13 after completing the program and may only be used for: 114.14 (1) paying a student loan; 114.15 (2) costs of attending an institution of higher education; 114.16 or 114.17 (3) expenses incurred by a student in an approved youth 114.18 apprenticeship program under chapter 126B, or in a registered 114.19 apprenticeship program approved by the department of labor and 114.20 industry. 114.21 Financial assistance provided under this subdivision must be in 114.22 the form of vendor payments whenever possible. Any postservice 114.23 benefits provided by federal funds or vouchers may be used as a 114.24 downpayment on, or closing costs for, purchasing a first home. 114.25 (b) Postservice benefits are to be used to develop skills 114.26 required in occupations where numbers of jobs are likely to 114.27 increase. The commission, in consultation with the education 114.28 and employment transitions council, and beginning January 1, 114.29 1997, the workforce development council, shall determine how the 114.30 benefits may be used in order to best prepare participants with 114.31 skills that build on their service learning and equip them for 114.32 meaningful employment. 114.33 (c) The postservice benefit shall not be included in 114.34 determining financial need when establishing eligibility or 114.35 award amounts for financial assistance programs under chapter 114.36 136A. 115.1 Sec. 8. Minnesota Statutes 1994, section 121.707, 115.2 subdivision 6, is amended to read: 115.3 Subd. 6. [PROGRAM TRAINING.] (a) The commission and, 115.4 beginning January 1, 1997, the council shall, within available 115.5 resources, ensure an opportunity for each participant to have 115.6 three weeks of training in a residential setting. If offered, 115.7 each training session must: 115.8 (1) orient each participant in the nature, philosophy, and 115.9 purpose of the program; 115.10 (2) build an ethic of community service through general 115.11 community service training; and 115.12 (3) provide additional training as it determines necessary. 115.13 (b) Each grantee organization shall also train participants 115.14 in skills relevant to the community service opportunity. 115.15 Sec. 9. Minnesota Statutes 1994, section 121.707, 115.16 subdivision 7, is amended to read: 115.17 Subd. 7. [TRAINING AND EDUCATION REQUIREMENTS.] Each 115.18 grantee organization shall assess the educational level of each 115.19 entering participant. Each grantee shall work to enhance the 115.20 educational skills of each participant. The commission and, 115.21 beginning January 1, 1997, the council may coordinate or 115.22 contract with educational institutions or other providers for 115.23 educational services and evaluation. All grantees shall give 115.24 priority to educating and training participants who do not have 115.25 a high school diploma or its equivalent, or who cannot afford 115.26 post-secondary training and education. 115.27 Sec. 10. Minnesota Statutes 1994, section 121.708, is 115.28 amended to read: 115.29 121.708 [PRIORITY.] 115.30 The commission and, beginning January 1, 1997, the council 115.31 shall give priority to an eligible organization proposing a 115.32 program that meets the goals of sections 121.704 to 121.707, and 115.33 that: 115.34 (1) involves youth in a meaningful way in all stages of the 115.35 program, including assessing community needs, preparing the 115.36 application, and assuming postservice leadership and mentoring 116.1 responsibilities; 116.2 (2) serves a community with significant unmet needs; 116.3 (3) provides an approach that is most likely to reduce 116.4 arrest rates, incarceration rates, teenage pregnancy, and other 116.5 indicators of troubled youth; 116.6 (4) builds linkages with existing, successful programs; and 116.7 (5) can be operational quickly. 116.8 Sec. 11. Minnesota Statutes 1994, section 121.709, is 116.9 amended to read: 116.10 121.709 [MATCH REQUIREMENTS.] 116.11 Youth works grant funds must be used for the living 116.12 allowance, cost of employer taxes under sections 3111 and 3301 116.13 of the Internal Revenue Code of 1986, workers' compensation 116.14 coverage, and health benefits for each program participant. 116.15 Youthworks grant funds may also be used to supplement applicant 116.16 resources to fund postservice benefits for program participants. 116.17 Applicant resources, from sources and in a form determined by 116.18 the commission and, beginning January 1, 1997, the council, must 116.19 be used to provide for all other programoperatingcosts, 116.20 including the portion of the applicant's obligation for 116.21 postservice benefits that is not covered by state or federal 116.22 grant funds and such costs as supplies, materials, 116.23 transportation, and salaries and benefits of those staff 116.24 directly involved in the operation, internal monitoring, and 116.25 evaluation of the program. Administrative expenses must not 116.26 exceed five percent of total program costs. 116.27 Sec. 12. Minnesota Statutes 1994, section 121.710, is 116.28 amended to read: 116.29 121.710 [EVALUATION AND REPORTING REQUIREMENTS.] 116.30 Subdivision 1. [GRANTEE ORGANIZATIONS.] Each grantee 116.31 organization shall report to the commission and, beginning 116.32 January 1, 1997, the council at the time and on the matters 116.33 requested by the commission and, beginning January 1, 1997, the 116.34 council. 116.35 Subd. 2. [INTERIM REPORT.] The commission and, beginning 116.36 January 1, 1997, the council shall report semiannually to the 117.1 legislature with interim recommendations to change the program. 117.2 Subd. 3. [FINAL REPORT.] The commission and, beginning 117.3 January 1, 1997, the council shall present a final report to the 117.4 legislature by January 1, 1998, summarizing grantee evaluations, 117.5 reporting on individual participants and participating grantee 117.6 organizations, and recommending any changes to improve or expand 117.7 the program. 117.8 Sec. 13. Minnesota Statutes 1994, section 121.885, 117.9 subdivision 1, is amended to read: 117.10 Subdivision 1. [SERVICE LEARNINGSERVICE-LEARNING AND 117.11 WORK-BASED LEARNING PROGRAMS STUDY.] TheMinnesota commission on117.12national and community service, established in section 121.703,117.13 governor's workforce development council shall assist the 117.14 commissioner of education in studying how to combine community 117.15 service activities andservice learningservice-learning with 117.16 work-based learning programs. 117.17 Sec. 14. Minnesota Statutes 1994, section 121.885, 117.18 subdivision 4, is amended to read: 117.19 Subd. 4. [PROGRAMS FOLLOWING YOUTH COMMUNITY SERVICE.] (a) 117.20 The Minnesota commission on national and community 117.21 serviceestablished in section 121.703,in cooperation with the 117.22 governor's workforce development council, the commissioner and 117.23 the higher education coordinating board, shall provide for those 117.24 participants who successfully complete youth community service 117.25 under sections121.703121.704 to 121.709, the following: 117.26 (1) for those who have a high school diploma or its 117.27 equivalent, an opportunity to participate in a youth 117.28 apprenticeship program at a community or technical college; and 117.29 (2) for those who are post-secondary students, an 117.30 opportunity to participate in an educational program that 117.31 supplements post-secondary courses leading to a degree or a 117.32 statewide credential of academic and occupational proficiency. 117.33 (b) Participants who successfully complete a youth 117.34 community service program under sections 121.704 to 121.710 are 117.35 eligible to receive an education voucher as provided under 117.36 section 121.707, subdivision 4. The voucher recipient may apply 118.1 the voucher toward the cost of the recipient's tuition and other 118.2 education-related expenses at a post-secondary school under 118.3 paragraph (a). 118.4 (c) TheMinnesota commission on national and community118.5servicegovernor's workforce development council, in cooperation 118.6 with thestate board of technical collegesboard of trustees of 118.7 the Minnesota state colleges and universities, shall establish a 118.8 mechanism to transfer credit earned in a youth apprenticeship 118.9 program between the technical colleges and other post-secondary 118.10 institutions offering applied associate degrees. 118.11 Sec. 15. Minnesota Statutes 1994, section 121.912, 118.12 subdivision 1b, is amended to read: 118.13 Subd. 1b. [TRA AND FICA TRANSFER.] (a) Notwithstanding 118.14 subdivision 1, a districtshallmay transfer money from the 118.15 general fund to the community service fund for the employer 118.16 contributions for teacher retirement and FICA for employees who 118.17 are members of a teacher retirement association and who are paid 118.18 from the community service fund. 118.19 (b) A district shall not transfer money under paragraph (a) 118.20 for employees who are paid with money other than normal 118.21 operating funds, as defined in section 354.05, subdivision 27. 118.22 Sec. 16. [124.255] [SCHOOL ENRICHMENT PARTNERSHIP 118.23 PROGRAM.] 118.24 Subdivision 1. [ESTABLISHMENT.] The school enrichment 118.25 partnership program is established. The purpose of the program 118.26 is to encourage school districts to expand the involvement of 118.27 the private sector in the delivery of academic programs. The 118.28 program will provide matching state funds for those provided by 118.29 the private sector. 118.30 Subd. 2. [REVENUE ELIGIBILITY.] A school district or group 118.31 of school districts is eligible to receive state aid under this 118.32 program. Districts may enter into joint agreements to provide 118.33 programs or make expenditures under this section. The 118.34 limitations under this subdivision shall apply to these programs 118.35 or expenditures as if they were operated by a single district. 118.36 A district may receive $1 of state aid for each $2 raised from 119.1 the private sector. The private match must be in the form of 119.2 cash. Specific types of noncash support may be considered for 119.3 the private match. State aid is limited to the lesser of 119.4 $75,000 or $10 per pupil unit per district. 119.5 Subd. 3. [REVENUE MANAGEMENT.] The use of the state and 119.6 private funds provided under this section is under the general 119.7 control of the school board. The board may establish, without 119.8 using state funds or public employees, a separate foundation to 119.9 directly manage the funds. The private funds must be used to 119.10 acquire instructional or noninstructional academic materials of 119.11 a capital nature including, but not limited to, textbooks, 119.12 globes, maps, and other academic material. The funds may not be 119.13 used for salaries or other employee benefits. 119.14 Subd. 4. [PROCEDURES; REPORT.] The Minnesota academic 119.15 excellence foundation, under the direction of the commissioner 119.16 of education, shall establish application forms, guidelines, 119.17 procedures, and timelines for the distribution of state aid. 119.18 The commissioner may require reporting necessary to evaluate the 119.19 program. Measures of success will include numbers of 119.20 partnerships and funds raised; numbers of school foundations 119.21 formed; and demonstrated linkages of partnerships to improved 119.22 instructional delivery resulting in increased student learning. 119.23 Subd. 5. [RESULTS-ORIENTED CHARTER 119.24 SCHOOLS.] Notwithstanding section 124.248, subdivision 4, 119.25 paragraph (b), a results-oriented charter school is eligible to 119.26 participate in the program under this section as if it were a 119.27 school district. 119.28 Sec. 17. Minnesota Statutes 1994, section 124.261, 119.29 subdivision 1, is amended to read: 119.30 Subdivision 1. [AID ELIGIBILITY.] For fiscal year 1996, 119.31 adult high school graduation aid for eligible pupils age 21 or 119.32 over, equals 65 percent of the general education formula 119.33 allowance times 1.30 times the average daily membership under 119.34 section 124.17, subdivision 2e. For 1997 and later fiscal 119.35 years, adult high school graduation aid per eligible pupil 119.36 equals the amount established by the commissioner of education, 120.1 in consultation with the commissioner of finance, based on the 120.2 appropriation for this program. Adult high school graduation 120.3 aid must be paid in addition to any other aid to the district. 120.4 Pupils age 21 or over may not be counted by the district for any 120.5 purpose other than adult high school graduation aid. 120.6 Sec. 18. Minnesota Statutes 1994, section 124.2711, 120.7 subdivision 2a, is amended to read: 120.8 Subd. 2a. [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 120.9 obtain early childhood family education revenue, a district may 120.10 levy an amount equal to the tax rate of.626.609 percent times 120.11 the adjusted tax capacity of the district for the year preceding 120.12 the year the levy is certified. If the amount of the early 120.13 childhood family education levy would exceed the early childhood 120.14 family education revenue, the early childhood family education 120.15 levy shall equal the early childhood family education revenue. 120.16 Sec. 19. Minnesota Statutes 1994, section 124.2713, 120.17 subdivision 6, is amended to read: 120.18 Subd. 6. [COMMUNITY EDUCATION LEVY.] To obtain community 120.19 education revenue, a district may levy the amount raised by a 120.20 tax rate of1.131.1 percentfor fiscal year 1995 and120.21thereafter,times the adjusted net tax capacity of the 120.22 district. If the amount of the community education levy would 120.23 exceed the community education revenue, the community education 120.24 levy shall be determined according to subdivision 6a. 120.25 Sec. 20. Minnesota Statutes 1994, section 124C.45, 120.26 subdivision 1, is amended to read: 120.27 Subdivision 1. [GOVERNANCE.] A school district may 120.28 establish an area learning center either by itself or in 120.29 cooperation with other districts, an ECSU, an intermediate 120.30 school district, a local education and employment transitions 120.31 partnership, public and private secondary and post-secondary 120.32 institutions, public agencies, businesses, and foundations. 120.33 Except for a district located in a city of the first class, a 120.34 center must serve the geographic area of at least two districts. 120.35 Sec. 21. Minnesota Statutes 1994, section 124C.46, 120.36 subdivision 2, is amended to read: 121.1 Subd. 2. [PEOPLE TO BE SERVED.] A center shall provide 121.2 programs for secondary pupils and adults, giving priority to 121.3 serving persons between 16 and 21 years of age. Secondary 121.4 pupils to be served are those who are chemically dependent, not 121.5 likely to graduate from high school, need assistance in 121.6 vocational and basic skills, can benefit from employment 121.7 experiences, and need assistance in transition from school to 121.8 employment. Adults to be served are dislocated homemakers and 121.9 workers and others who need basic educational and social 121.10 services. In addition to offering programs, the center shall 121.11 coordinate the use of other available educational services, 121.12 social services, and post-secondary institutions in the 121.13 community. The center may also provide programs, including 121.14 work-based, service-learning, and applied learning opportunities 121.15 developed in collaboration with a local education and employment 121.16 transitions partnership, for elementary and secondary pupils who 121.17 are not attending the center to assist them in completing high 121.18 school. 121.19 Sec. 22. Minnesota Statutes 1994, section 124C.48, 121.20 subdivision 1, is amended to read: 121.21 Subdivision 1. [OUTSIDE SOURCES.] A center may accept: 121.22 (1) resources and services from post-secondary institutions 121.23 serving center pupils; 121.24 (2) resources from job training partnership act programs, 121.25 including funding for jobs skills training for various groups 121.26 and the percentage reserved for education; 121.27 (3) resources from the department of human services and 121.28 county welfare funding;or121.29 (4) resources from a local education and employment 121.30 transitions partnership; or 121.31 (5) private resources, foundation grants, gifts, corporate 121.32 contributions, and other grants. 121.33 Sec. 23. Minnesota Statutes 1994, section 126B.01, is 121.34 amended to read: 121.35 126B.01 [PURPOSEEDUCATION AND EMPLOYMENT TRANSITIONS 121.36 SYSTEM.] 122.1 Subdivision 1. [PURPOSEGOALS.] To better prepare all 122.2 learners to make transitions between education and employment, a 122.3 comprehensive education and employment transitions system is 122.4 establishedtothat is driven by multisector partnerships and 122.5 takes a lifelong approach to workforce development. The goals 122.6 of the statewide education and employment transitions system are: 122.7 (1) to improve the skills learners need to achieve greater 122.8 levels of self-sufficiency through education, training, and 122.9 work; 122.10 (2)assist individuals in planning their futures by122.11providingto improve work-related counseling and information 122.12 about career opportunities and vocational education programs 122.13 available to learners to facilitate workforce development; 122.14(2)(3) to integrate opportunities for work-based learning, 122.15including but not limited to occupation-specific apprenticeship122.16programs and community service programs,service-learning, and 122.17 other applied learning methods into the elementary, secondary, 122.18 and post-secondary curriculum and state and local graduation 122.19 standards; 122.20(3)(4) to increase participation in employment 122.21 opportunities and demonstrate the relationship between education 122.22 and employment at the elementary, secondary, and post-secondary 122.23 education levels; 122.24 (5) to promote the efficient use of public and private 122.25 resources by coordinating elementary, secondary, and 122.26 post-secondary education with related government programs;and122.27(4)(6) to expand educational options available tostudents122.28 all learners through collaborative efforts betweensecondary122.29institutionsschool districts, post-secondary 122.30 institutions,business, industryemployers, organized 122.31 labor, workers, learners, parents, community-based 122.32 organizations, and other interested parties; 122.33 (7) to increase opportunities for women, minorities, 122.34 individuals with a disability, and at-risk learners to fully 122.35 participate in work-based learning; 122.36 (8) to establish performance standards for learners that 123.1 integrate state and local graduation standards and generally 123.2 recognized industry and occupational skill standards; and 123.3 (9) to provide support systems including a unified labor 123.4 market information system; a centralized quality assurance 123.5 system with information on learner achievement, employer 123.6 satisfaction, and measurable system outcomes; a statewide 123.7 marketing system to promote the importance of lifework 123.8 development; a comprehensive professional development system for 123.9 public and private sector partners; and a comprehensive system 123.10 for providing technical support to local partnerships for 123.11 education and employment transitions. 123.12 Subd. 2. [FUNDING.] Work-based learning programs 123.13 incorporating post-secondary instruction implemented under this 123.14 chapter shall provide for student funding according to section 123.15 123.3514. 123.16 Subd. 3. [GOVERNOR'S WORKFORCE DEVELOPMENT COUNCIL.] The 123.17 governor's workforce development council is responsible for 123.18 developing, implementing, and evaluating the statewide education 123.19 and employment transitions system and achieving the goals of the 123.20 system. 123.21 Subd. 4. [PARTNERSHIP GRANTS.] The council shall award 123.22 grants to implement local education and employment transition 123.23 systems to local education and employment transition 123.24 partnerships established under 126B.10. Grants under this 123.25 section may be used for the local education and employment 123.26 transitions system, youth apprenticeship and other work-based 123.27 learning programs, youth employer programs, youth 123.28 entrepreneurship programs, and other programs and purposes the 123.29 council determines fulfill the purposes of the education and 123.30 employment transitions system. The council shall evaluate grant 123.31 proposals on the basis of the elements required in the local 123.32 plan described in section 126B.10, subdivision 3. The council 123.33 shall develop and publicize the grant application process and 123.34 review and comment on the proposals submitted. Priority in 123.35 awarding grants must be given to local partnerships that include 123.36 multiple communities and a viable base of educational, 124.1 work-based learning, and employment opportunities. 124.2 Subd. 5. [ANNUAL REVIEW.] The council shall review the 124.3 activities of each local education and employment transitions 124.4 partnership annually to ensure that the local partnership is 124.5 adequately meeting the system standards under section 126B.10 124.6 and state quality assurance standards established as part of the 124.7 quality assurance system developed by the council. This 124.8 subdivision expires July 1, 1997. 124.9 Subd. 6. [REPORT.] The council shall annually publish a 124.10 report summarizing the data submitted by each local education 124.11 and employment transitions partnership. The report shall be 124.12 published no later than September 1 of the year following the 124.13 year in which the data was collected. This subdivision expires 124.14 July 1, 1997. 124.15 Sec. 24. Minnesota Statutes 1994, section 126B.03, 124.16 subdivision 2, is amended to read: 124.17 Subd. 2. [ACADEMIC INSTRUCTION AND WORK-RELATED LEARNING.] 124.18(a) AComprehensive youth apprenticeshipprogramprograms and 124.19 other work-based learning programs under the education and 124.20 employment transitions system must integrate academic 124.21 instruction and work-related learning in the classroom and at 124.22 the workplace. Schools, in collaboration withstudents'124.23 learners' employers, must use competency-based measures to 124.24 evaluatestudents'learners' progress in the program.Students124.25 Learners who successfully complete the program must receive 124.26 academic and occupational credentials from the participating 124.27 school. 124.28(b) The academic instruction provided as part of a124.29comprehensive youth apprenticeship program must:124.30(1) meet applicable secondary and post-secondary education124.31requirements;124.32(2) enable the students to attain academic proficiency in124.33at least the areas of English, mathematics, history, science,124.34and geography; and124.35(3) where appropriate, modify existing secondary and124.36post-secondary curricula to accommodate the changing needs of125.1the workplace.125.2(c) Work-based learning provided as part of the program125.3must:125.4(1) supply students with knowledge, skills, and abilities125.5based on appropriate, nationally accepted standards in the125.6specific industries and occupations for which the students are125.7trained;125.8(2) offer students structured job training at the worksite,125.9including high quality supervised learning opportunities;125.10(3) foster interactive, team-based learning;125.11(4) encourage sound work habits and behaviors;125.12(5) develop workplace skills, including the ability to125.13manage resources, work productively with others, acquire and use125.14information, understand and master systems, and work with125.15technologies; and125.16(6) where feasible, offer students the opportunity to125.17participate in community service and service learning activities.125.18(d) Worksite learning and experience provided as part of125.19the program must:125.20(1) help youth apprentices achieve the program's academic125.21and work-based learning requirements;125.22(2) pay apprentices for their work; and125.23(3) assist employers to fulfill their commitment to youth125.24apprentices.125.25 Sec. 25. Minnesota Statutes 1994, section 126B.03, 125.26 subdivision 3, is amended to read: 125.27 Subd. 3. [PROGRAM COMPONENTSYOUTH APPRENTICESHIP 125.28 PROGRAMS.] (a) A comprehensive youth apprenticeship program must 125.29 require representatives of secondary and post-secondary school 125.30 systems, affected local businesses, industries, occupations and 125.31 labor, as well as the local community, to be actively and 125.32 collaboratively involved in advising and managing the 125.33 program and ensuring, in consultation.125.34(b) The entities participating in a program must consult125.35 with local private industry councils,to ensurethat the youth 125.36 apprenticeship program meets local labor market demandsand, 126.1 provides student apprentices with the high skill training 126.2 necessary for career advancement,within an occupation. 126.3(c) The program must meetmeets applicable stateeducation126.4 graduation requirements and labor standards, pays apprentices 126.5 for their work andprovideprovides support services to program 126.6 participants, and accommodate the integrating of work-related126.7learning and academic instruction through flexible schedules for126.8students and teachers and appropriately modified curriculum. 126.9(d)(b) Local employers, collaborating with labor 126.10 organizations where appropriate, must assist the program by 126.11 analyzing workplace needs, creating work-related curriculum, 126.12 employing and adequately paying youth apprentices engaged in 126.13 work-related learning in the workplace, training youth 126.14 apprentices to become skilled in an occupation, providing 126.15 student apprentices with a workplace mentor, periodically 126.16 informing the school of an apprentice's progress, and making a 126.17 reasonable effort to employ youth apprentices who successfully 126.18 complete the program. 126.19(e)(c) A student participating in a comprehensive youth 126.20 apprenticeship program must sign a youth apprenticeship 126.21 agreement with participating entities that obligates youth 126.22 apprentices, their parents or guardians, employers, and schools 126.23 to meet program requirements; indicates how academic 126.24 instruction, work-based learning, and worksite learning and 126.25 experience will be integrated; ensures that successful youth 126.26 apprentices will receive a recognized credential of academic and 126.27 occupational proficiency; and establishes the wage rate and 126.28 other benefits for which youth apprentices are eligible while 126.29 employed during the program. 126.30(f)(d) Secondary school principalsor, counselors, or 126.31 business mentors familiar with thedemonstration project126.32 education to employment transitions system must inform entering 126.33 secondary school students about available occupational and 126.34 career opportunities and the option of entering a youth 126.35 apprenticeshipprogramor other work-based learning program to 126.36 obtain post-secondary academic and occupational credentials. 127.1 Sec. 26. [126B.10] [EDUCATION AND EMPLOYMENT TRANSITIONS 127.2 PARTNERSHIPS.] 127.3 Subdivision 1. [LOCAL PARTNERSHIPS; ESTABLISHMENT.] Local 127.4 education and employment transitions partnerships may be 127.5 established to implement local education and employment 127.6 transitions systems. Local partnerships shall represent 127.7 multiple sectors in the community, including, at a minimum, 127.8 representatives of employers, primary and secondary education, 127.9 labor and professional organizations, workers, learners, 127.10 parents, community-based organizations, and to the extent 127.11 possible, post-secondary education. 127.12 Subd. 2. [BOARD.] A local education and employment 127.13 transitions partnership shall establish a governing board for 127.14 planning and implementing work-based and other applied learning 127.15 programs. The board shall consist of at least one 127.16 representative from each member of the education and employment 127.17 transitions partnership. A majority of the board must consist of 127.18 representatives of local or regional employers. 127.19 Subd. 3. [LOCAL EDUCATION AND EMPLOYMENT TRANSITIONS 127.20 SYSTEMS.] A local education and employment transitions 127.21 partnership shall assess the needs of employers, employees, and 127.22 learners, and develop a plan for implementing and achieving the 127.23 objectives of a local or regional education and employment 127.24 transitions system. The plan shall provide for a comprehensive 127.25 local system for assisting learners and workers in making the 127.26 transition from school to work or for retraining in a new 127.27 vocational area. The objectives of a local education and 127.28 employment transitions system include: 127.29 (1) increasing the effectiveness of the educational 127.30 programs and curriculum of elementary, secondary, and 127.31 post-secondary schools and the work site in preparing students 127.32 in the skills and knowledge needed to be successful in the 127.33 workplace; 127.34 (2) implementing learner outcomes for students in grades 127.35 kindergarten through 12 designed to introduce the world of work 127.36 and to explore career opportunities, including nontraditional 128.1 career opportunities; 128.2 (3) eliminating barriers to providing effective integrated 128.3 applied learning, service-learning, or work-based curriculum; 128.4 (4) increasing opportunities to apply academic knowledge 128.5 and skills, including skills needed in the workplace, in local 128.6 settings which include the school, school-based enterprises, 128.7 post-secondary institutions, the workplace, and the community; 128.8 (5) increasing applied instruction in the attitudes and 128.9 skills essential for success in the workplace, including 128.10 cooperative working, leadership, problem-solving, and respect 128.11 for diversity; 128.12 (6) providing staff training for vocational guidance 128.13 counselors, teachers, and other appropriate staff in the 128.14 importance of preparing learners for the transition to work, and 128.15 in methods of providing instruction that incorporate applied 128.16 learning, work-based learning, and service learning experiences; 128.17 (7) identifying and enlisting local and regional employers 128.18 who can effectively provide work-based or service learning 128.19 opportunities, including, but not limited to, apprenticeships, 128.20 internships, and mentorships; 128.21 (8) recruiting community and workplace mentors including 128.22 peers, parents, employers and employed individuals from the 128.23 community, and employers of high school students; 128.24 (9) identifying current and emerging educational, training, 128.25 and employment needs of the area or region, especially within 128.26 industries with potential for job growth; 128.27 (10) improving the coordination and effectiveness of local 128.28 vocational and job training programs, including vocational 128.29 education, adult basic education, tech prep, apprenticeship, 128.30 service learning, youth entrepreneur, youth training and 128.31 employment programs administered by the commissioner of economic 128.32 security, and local job training programs under the Job Training 128.33 Partnership Act, United States Code, title 29, section 1501, et 128.34 seq.; 128.35 (11) identifying and applying for federal, state, local, 128.36 and private sources of funding for vocational or applied 129.1 learning programs; 129.2 (12) providing students with current information and 129.3 counseling about career opportunities, potential employment, 129.4 educational opportunities in post-secondary institutions, 129.5 workplaces, and the community, and the skills and knowledge 129.6 necessary to succeed; 129.7 (13) providing educational technology, including 129.8 interactive television networks and other distance learning 129.9 methods, to ensure access to a broad variety of work-based 129.10 learning opportunities; 129.11 (14) including students with disabilities in a district's 129.12 vocational or applied learning program and ways to serve at-risk 129.13 learners through collaboration with area learning centers under 129.14 sections 124C.45 to 124C.49, or other alternative programs; and 129.15 (15) providing a warranty to employers, post-secondary 129.16 education programs, and other post-secondary training programs, 129.17 that learners successfully completing a high school work-based 129.18 or applied learning program will be able to apply the knowledge 129.19 and work skills included in the program outcomes or graduation 129.20 requirements. The warranty shall require education and training 129.21 programs to continue to work with those learners that need 129.22 additional skill development until they can demonstrate 129.23 achievement of the program outcomes or graduation requirements. 129.24 Subd. 4. [ANNUAL REPORTS.] (a) A local education and 129.25 employment transitions partnership shall annually publish a 129.26 report and submit information to the council as required. The 129.27 report shall include information required by the council for the 129.28 statewide system performance assessment. The report shall be 129.29 available to the public in the communities served by the local 129.30 education and employment transitions partnership. The report 129.31 shall be published no later than September 1 of the year 129.32 following the year in which the data was collected. 129.33 Sec. 27. [MINNESOTA COMMISSION ON NATIONAL AND COMMUNITY 129.34 SERVICE; TRANSFER OF RESPONSIBILITY.] 129.35 If the governor's workforce development council meets 129.36 federal requirements for the commission on national and 130.1 community service, the duties of the Minnesota commission on 130.2 national and community service under Minnesota Statutes, 130.3 sections 121.703 to 121.710, shall transfer to the governor's 130.4 workforce development council on January 1, 1997. If, by that 130.5 date, the workforce development council does not meet federal 130.6 requirements, the Minnesota commission on national and community 130.7 service shall continue to perform the duties assigned to it. 130.8 Sec. 28. [YOUTH EMPLOYER GRANT PROGRAM.] 130.9 Subdivision 1. [YOUTH EMPLOYER GRANTS.] The governor's 130.10 workforce development council shall establish a pilot program 130.11 for improving the work-based learning experience of school-aged 130.12 youth who are employed. An employer, in partnership with a 130.13 local education and employment transitions partnership, may 130.14 apply for a youth employer grant to the governor's workforce 130.15 development council. The council shall determine application 130.16 procedures and criteria for approving grant awards. 130.17 Subd. 2. [GRANT APPLICATION.] A grant application shall 130.18 include a plan to meet the following goals: 130.19 (1) enhance the work experience of employed youth by 130.20 integrating appropriate academic and work skills components; 130.21 (2) develop an applied learning plan for each employed 130.22 youth that outlines the academic and work skills outcomes to be 130.23 achieved by the work-based learning experience and describes how 130.24 these outcomes apply toward attainment of high school graduation 130.25 requirements; 130.26 (3) provide training and support to the employer in 130.27 developing a work experience for meeting the goals of the 130.28 applied learning plan and for assessing student achievement; and 130.29 (4) evaluate the effectiveness of the work-based learning 130.30 program. 130.31 Subd. 3. [GRANT AWARDS.] The governor's workforce 130.32 development council may award youth employer grants to 130.33 applicants eligible under subdivision 1. Grant recipients 130.34 should be geographically distributed throughout the state. 130.35 Grant proceeds may be used for the costs of planning, materials, 130.36 and training. The school district, school, or post-secondary 131.1 education institution partner shall be the fiscal agent for the 131.2 grant. 131.3 Sec. 29. [APPROPRIATIONS.] 131.4 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 131.5 indicated in this section are appropriated from the general fund 131.6 or other named fund to the department of education for the 131.7 fiscal years designated. 131.8 Subd. 2. [ADULT BASIC EDUCATION AID.] For adult basic 131.9 education aid according to Minnesota Statutes, sections 124.26 131.10 in fiscal year 1996 and 124.2601 in fiscal year 1997: 131.11 $8,374,000 ..... 1996 131.12 $8,374,000 ..... 1997 131.13 The 1996 appropriation includes $1,256,000 for 1995 and 131.14 $7,118,000 for 1996. 131.15 The 1997 appropriation includes $1,256,000 for 1996 and 131.16 $7,118,000 for 1997. 131.17 Up to $199,000 each year may be used for contracts with 131.18 private, nonprofit organizations for approved programs. 131.19 Subd. 3. [ADULTS WITH DISABILITIES PROGRAM AID.] For 131.20 adults with disabilities programs according to Minnesota 131.21 Statutes, section 124.2715: 131.22 $695,000 ..... 1996 131.23 $695,000 ..... 1997 131.24 Any balance in the first year does not cancel and is 131.25 available for the second year. 131.26 Of these amounts, $25,000 each year is to fund the Michael 131.27 Ehrlichmann memorial for the Minnesota Statewide Direct Services 131.28 Initiative, to provide training for: (1) direct service 131.29 providers, including staff working in vocational and residential 131.30 settings, paraprofessionals in education, and persons working in 131.31 other related settings; and (2) individuals with developmental 131.32 disabilities and their families. The commissioner must transmit 131.33 this amount to the Governor's developmental disabilities council. 131.34 Subd. 4. [ADULT GRADUATION AID.] For adult graduation aid: 131.35 $2,245,000 ..... 1996 131.36 $2,245,000 ..... 1997 132.1 The 1996 appropriation includes $336,000 for 1995 and 132.2 $1,909,000 for 1996. 132.3 The 1997 appropriation includes $336,000 for 1996 and 132.4 $1,909,000 for 1997. 132.5 Subd. 5. [ALCOHOL-IMPAIRED DRIVER.] (a) For grants with 132.6 funds received under Minnesota Statutes, section 171.29, 132.7 subdivision 2, paragraph (b), clause (4): 132.8 $514,000 ..... 1996 132.9 $514,000 ..... 1997 132.10 (b) These appropriations are from the alcohol-impaired 132.11 driver account of the special revenue fund. Any funds credited 132.12 for the department of education to the alcohol-impaired driver 132.13 account of the special revenue fund in excess of the amounts 132.14 appropriated in this subdivision are appropriated to the 132.15 department of education and available in fiscal year 1996 and 132.16 fiscal year 1997. 132.17 (c) Up to $226,000 each year may be used by the department 132.18 of education to contract for services to school districts 132.19 stressing the dangers of driving after consuming alcohol. No 132.20 more than five percent of this amount may be used for 132.21 administrative costs by the contract recipients. 132.22 (d) Up to $88,000 each year may be used for grants to 132.23 support student-centered programs to discourage driving after 132.24 consuming alcohol. 132.25 (e) Up to $200,000 and any additional funds each year may 132.26 be used for chemical abuse prevention grants. 132.27 Subd. 6. [COMMUNITY EDUCATION AID.] For community education 132.28 aid according to Minnesota Statutes, section 124.2713: 132.29 $2,826,000 ..... 1996 132.30 $2,574,000 ..... 1997 132.31 The 1996 appropriation includes $499,000 for 1995 and 132.32 $2,327,000 for 1996. 132.33 The 1997 appropriation includes $410,000 for 1996 and 132.34 $2,164,000 for 1997. 132.35 Subd. 7. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 132.36 childhood family education aid according to Minnesota Statutes, 133.1 section 124.2711: 133.2 $14,224,000 ..... 1996 133.3 $13,832,000 ..... 1997 133.4 The 1996 appropriation includes $2,086,000 for 1995 and 133.5 $12,138,000 for 1996. 133.6 The 1997 appropriation includes $2,140,000 for 1996 and 133.7 $11,692,000 for 1997. 133.8 $10,000 each year may be spent for evaluation of early 133.9 childhood family education programs. 133.10 Subd. 8. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 133.11 GRANTS.] For local education and employment transitions program 133.12 grants: 133.13 $2,500,000 ..... 1996 133.14 $2,500,000 ..... 1997 133.15 $600,000 each year is for development of a labor-management 133.16 information system to support education to employment 133.17 transitions programs. 133.18 $575,000 each year is for youth apprenticeship program 133.19 grants. Youth apprenticeship program grants may only be awarded 133.20 to local education and employment transitions partnerships or to 133.21 a youth apprenticeship program that previously received a youth 133.22 apprenticeship demonstration program grant according to Laws 133.23 1993, chapter 335, section 7. 133.24 $1,000,000 each year is for local program grants, of which 133.25 $100,000 must be used for youth entrepreneurship grants under 133.26 Minnesota Statutes, section 116J.655, and $100,000 must be used 133.27 for youth employer grants under section 28. 133.28 $325,000 each year is for state-level activities, including 133.29 the governor's workforce development council. 133.30 Any unexpended balance remaining in the first year does not 133.31 cancel but is available in the second year. 133.32 Subd. 9. [EXTENDED DAY AID.] For extended day aid: 133.33 $381,000 ..... 1996 133.34 $374,000 ..... 1997 133.35 The 1996 appropriation includes $58,000 for 1995 and 133.36 $323,000 for 1996. 134.1 The 1997 appropriation includes $56,000 for 1996 and 134.2 $318,000 for 1997. 134.3 Subd. 10. [FAMILY COLLABORATIVES.] For family 134.4 collaboratives: 134.5 $6,000,000 ..... 1996 134.6 $6,000,000 ..... 1997 134.7 Of the appropriation, $150,000 each year is for grants 134.8 targeted to assist in providing collaborative children's library 134.9 service programs. To be eligible, a family collaborative grant 134.10 recipient must collaborate with at least one public library and 134.11 one children's or family organization. The public library must 134.12 involve the regional public library system and multitype library 134.13 system to which it belongs in the planning and provide for an 134.14 evaluation of the program. 134.15 No more than 2.5 percent of the appropriation is available 134.16 to the state to administer and evaluate the grant program. 134.17 Any balance in the first year does not cancel but is 134.18 available in the second year. 134.19 Subd. 11. [GED TESTS.] For payment of 60 percent of the 134.20 costs of GED tests: 134.21 $125,000 ..... 1996 134.22 $125,000 ..... 1997 134.23 Any balance in the first year does not cancel but is 134.24 available in the second year. 134.25 Subd. 12. [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 134.26 health and developmental screening aid according to Minnesota 134.27 Statutes, sections 123.702 and 123.7045: 134.28 $1,550,000 ..... 1996 134.29 $1,550,000 ..... 1997 134.30 The 1996 appropriation includes $232,000 for 1995 and 134.31 $1,318,000 for 1996. 134.32 The 1997 appropriation includes $232,000 for 1996 and 134.33 $1,318,000 for 1997. 134.34 Any balance in the first year does not cancel but is 134.35 available in the second year. 134.36 Subd. 13. [HEARING IMPAIRED ADULTS.] For programs for 135.1 hearing impaired adults according to Minnesota Statutes, section 135.2 121.201: 135.3 $70,000 ..... 1996 135.4 $70,000 ..... 1997 135.5 Any balance in the first year does not cancel but is 135.6 available in the second year. 135.7 Subd. 14. [LEARNING READINESS PROGRAM REVENUE.] For 135.8 revenue for learning readiness programs: 135.9 $9,506,000 ..... 1996 135.10 $9,505,000 ..... 1997 135.11 The 1996 appropriation includes $1,424,000 for 1995 and 135.12 $8,082,000 for 1996. 135.13 The 1997 appropriation includes $1,425,000 for 1996 and 135.14 $8,080,000 for 1997. 135.15 $10,000 each year may be spent for evaluation of learning 135.16 readiness programs. 135.17 Subd. 15. [OMBUDSPERSONS.] For ombudspersons: 135.18 $33,000 ..... 1996 135.19 $33,000 ..... 1997 135.20 The appropriation is made to the office of ombudspersons 135.21 for families for purposes of funding the activities of the 135.22 ombudsperson authorized by Minnesota Statutes, sections 257.0755 135.23 to 257.0768. Any balance in the first year does not cancel but 135.24 is available in the second year. 135.25 Subd. 16. [VIOLENCE PREVENTION EDUCATION GRANTS.] For 135.26 violence prevention education grants: 135.27 $1,500,000 ..... 1996 135.28 $1,500,000 ..... 1997 135.29 Of the amount each year, $50,000 is for program 135.30 administration. 135.31 Any balance in the first year does not cancel but is 135.32 available in the second year. 135.33 Subd. 17. [WAY TO GROW.] For grants for existing way to 135.34 grow programs according to Minnesota Statutes, section 121.835: 135.35 $475,000 ..... 1996 135.36 $475,000 ..... 1997 136.1 Any balance in the first year does not cancel but is 136.2 available in the second year. 136.3 Subd. 18. [SCHOOL ENRICHMENT PARTNERSHIP PROGRAM.] For 136.4 school enrichment partnership program aid: 136.5 $500,000 ..... 1996 136.6 Any balance remaining in the first year does not cancel but 136.7 is available in the second year. 136.8 Subd. 19. [YOUTHWORKS.] For funding youthworks programs 136.9 according to Minnesota Statutes, sections 121.70 to 121.710: 136.10 $1,813,000 ..... 1996 136.11 $1,813,000 ..... 1997 136.12 Any balance in the first year does not cancel but is 136.13 available in the second year. 136.14 Subd. 20. [YOUTHWORKS PROGRAM.] For implementing 136.15 youthworks programs: 136.16 $50,000 ..... 1996 136.17 $50,000 ..... 1997 136.18 Any balance in the first year does not cancel but is 136.19 available in the second year. 136.20 Sec. 30. [REVISOR INSTRUCTIONS.] 136.21 In the next and subsequent editions of Minnesota Statutes, 136.22 the revisor shall change the title of Minnesota Statutes, 136.23 chapter 126B, from "YOUTH APPRENTICESHIP SYSTEM" to "EDUCATION 136.24 AND EMPLOYMENT TRANSITIONS SYSTEM." 136.25 In the next and subsequent editions of Minnesota Statutes 136.26 and Minnesota Rules, the revisor shall substitute the term 136.27 "workforce development council" for "governor's job training 136.28 council" wherever it appears in statutes and rules. 136.29 In the next and subsequent editions of Minnesota Statutes 136.30 and Minnesota Rules, the revisor shall change the term "service 136.31 learning" to "service-learning" wherever it appears in statutes 136.32 and rules. 136.33 Sec. 31. [REPEALER.] 136.34 (a) Minnesota Statutes 1994, sections 121.702, subdivision 136.35 9; and 121.703, are repealed. 136.36 (b) Minnesota Statutes 1994, sections 126B.02; 126B.03, 137.1 subdivision 1; 126B.04; and 126B.05, are repealed. 137.2 Sec. 32. [EFFECTIVE DATES.] 137.3 (a) Section 31, paragraph (a), is effective July 1, 1997, 137.4 if the governor's workforce development council meets all 137.5 federal requirements for the commission on national and 137.6 community service. 137.7 (b) Tax rate changes in sections 18 and 19 are effective 137.8 beginning with taxes payable in 1996. 137.9 ARTICLE 5 137.10 FACILITIES 137.11 Section 1. Minnesota Statutes 1994, section 124.14, is 137.12 amended by adding a subdivision to read: 137.13 Subd. 8. [HEALTH AND SAFETY AID TRANSFER.] The 137.14 commissioner of education, with the approval of the commissioner 137.15 of finance, annually may transfer an amount from the 137.16 appropriation for health and safety aid to the appropriation for 137.17 debt service aid for the same fiscal year. The amount of the 137.18 transfer equals the amount necessary to fund any shortage in the 137.19 debt service aid appropriation created by a data correction that 137.20 occurs between November 1 and June 30 of the preceding fiscal 137.21 year. 137.22 Sec. 2. Minnesota Statutes 1994, section 124.243, 137.23 subdivision 2, is amended to read: 137.24 Subd. 2. [CAPITAL EXPENDITURE FACILITIES REVENUE.] (a)For137.25fiscal years 1994 and 1995,Capital expenditure facilities 137.26 previous formula revenue for a district equals $128 times its 137.27 actual pupil units for the school year. 137.28 (b) For fiscal years 1996and later, capital expenditure 137.29 facilities revenue for a district equals $100 times the 137.30 district's maintenance cost index times its actual pupil units 137.31 for the school year. 137.32(c) A district's capital expenditure facilities revenue for137.33a school year shall be reduced if the unreserved balance in the137.34capital expenditure facilities account on June 30 of the prior137.35school year exceeds $675 times the fund balance pupil units in137.36the prior year as defined in section 124A.26, subdivision 1. If138.1a district's capital expenditure facilities revenue is reduced,138.2the reduction equals the lesser of (1) the amount that the138.3unreserved balance in the capital expenditure facilities account138.4on June 30 of the prior year exceeds $675 times the fund balance138.5pupil units in the prior year, or (2) the capital expenditure138.6facilities revenue for that year.138.7(d) For 1996 and later fiscal years, the previous formula138.8revenue equals the amount of revenue computed for the district138.9according to section 124.243 for fiscal year 1995.138.10(e)(c) Notwithstanding paragraph (b), for fiscal year 138.11 1996, the revenue for each district equals 25 percent of the 138.12 amount determined in paragraph (b) plus 75 percent of the 138.13 previous formula revenue. 138.14(f)(d) Notwithstanding paragraph (b), for fiscal year 138.15 1997, the revenue for each district equals 50 percent of the 138.16 amount determined in paragraph (b) plus 50 percent of the 138.17 previous formula revenue. 138.18(g)(e) Notwithstanding paragraph (b), for fiscal year 138.19 1998, the revenue for each district equals 75 percent of the 138.20 amount determined in paragraph (b) plus 25 percent of the 138.21 previous formula revenue. 138.22(h)(f) The revenue in paragraph (b) for a district that 138.23 operates a program under section 121.585, is increased by an 138.24 amount equal to $15 times the number of actual pupil units at 138.25 the site where the program is implemented. 138.26 Sec. 3. Minnesota Statutes 1994, section 124.244, 138.27 subdivision 1, is amended to read: 138.28 Subdivision 1. [REVENUE AMOUNT.](a) For fiscal year 1995,138.29the capital expenditure equipment revenue for each district138.30equals $66 times its actual pupil units for the school year.138.31(b)For fiscalyearsyear 1996and later,the capital138.32expenditureequipment revenue for each district equals$69$75 138.33 times its actual pupil units for the school year. 138.34(c)Of a district's capital expenditure equipment revenue, 138.35$3$8 times its actual pupil units for the school year shall be 138.36 reserved and used according to subdivision 4, paragraph (b). 139.1 Sec. 4. Minnesota Statutes 1994, section 124.244, 139.2 subdivision 4, is amended to read: 139.3 Subd. 4. [USES OF REVENUE.] (a) Capital expenditure 139.4 equipment revenue may be used only for the following purposes: 139.5 (1) to pay capital expenditure equipment related 139.6 assessments of any entity formed under a cooperative agreement 139.7 between two or more districts; 139.8 (2) to purchase or lease computers and related materials, 139.9 copying machines, telecommunications equipment, and other 139.10 noninstructional equipment; 139.11 (3) to purchase or lease assistive technology or equipment 139.12 for instructional programs; 139.13 (4) to purchase textbooks; 139.14 (5) to purchase new and replacement library books; and 139.15 (6) to purchase vehicles except those for which a levy is 139.16 authorized under section 124.226, subdivision 6. 139.17 (b) The reserved capital expenditure equipment revenue 139.18 shall only be used to purchase or lease telecommunications 139.19 equipment, computers, and related equipment for integrated 139.20 information management systems for: 139.21 (1) managing and reporting learner outcome information for 139.22 all students under a results-oriented graduation rule; 139.23 (2) managing student assessment, services, and achievement 139.24 information required for students with individual education 139.25 plans;and139.26 (3) other classroom information management needs.; and 139.27 (4) to pay personnel costs directly related to the 139.28 acquisition, operation, and maintenance of telecommunications 139.29 systems, computers, related equipment, and network and 139.30 applications software. 139.31 (c) The equipment obtained with reserved revenue shall be 139.32 utilized, to the greatest extent possible given available 139.33 funding, on a per instructor or per classroom basis. A school 139.34 district may supplement its reserved revenue with other capital 139.35 expenditure equipment revenue, and cash and in-kind grants from 139.36 public and private sources. 140.1 Sec. 5. Minnesota Statutes 1994, section 124.2445, is 140.2 amended to read: 140.3 124.2445 [PURCHASE OF CERTAIN EQUIPMENT.] 140.4 The board of a school district may issue certificates of 140.5 indebtedness or capital notes subject to the school district 140.6 debt limits to purchase vehicles other than school buses, 140.7 computers, telephone systems, cable equipment, photocopy and 140.8 office equipment, technological equipment for instruction, and 140.9 other capital equipment having an expected useful life at least 140.10 as long as the terms of the certificates or notes. The 140.11 certificates or notes must be payable in not more than five 140.12 years and must be issued on the terms and in the manner 140.13 determined by the board. The certificates or notes may be 140.14 issued by resolution and without the requirement for an 140.15 election. The certificates or notes are general obligation 140.16 bonds for purposes of section 124.755. A tax levy must be made 140.17 for the payment of the principal and interest on the 140.18 certificates or notes, in accordance with section 475.61, as in 140.19 the case of bonds. That tax levy for each year must not exceed 140.20 the amount of the district's total operating capitalexpenditure140.21equipment levy under section 124.244revenue for the year the 140.22 initial debt service levies are certified. The 140.23 district'scapital expenditure levy under section140.24124.244general education levy for each year must be reduced by 140.25 the amount of the tax levies for debt service certified for each 140.26 year for payment of the principal and interest on the 140.27 certificates or notes as required by section 475.61. 140.28 Sec. 6. Minnesota Statutes 1994, section 124.2455, is 140.29 amended to read: 140.30 124.2455 [BONDS FOR CERTAIN CAPITAL FACILITIES.] 140.31 (a) In addition to other bonding authority, with approval 140.32 of the commissioner, a school district may issue general 140.33 obligation bonds for certain capital projects under this 140.34 section. The bonds must be used only to make capital 140.35 improvements including: 140.36 (1) under section 124.243, subdivision 6, capital 141.1 expenditure facilities revenue uses specified in clauses (4), 141.2 (6), (7), (8), (9), and (10); 141.3 (2) the cost of energy modifications; 141.4 (3) improving handicap accessibility to school buildings; 141.5 and 141.6 (4) bringing school buildings into compliance with life and 141.7 safety codes and fire codes. 141.8 (b) Before a district issues bonds under this subdivision, 141.9 it must publish notice of the intended projects, the amount of 141.10 the bond issue, and the total amount of district indebtedness. 141.11 (c) A bond issue tentatively authorized by the board under 141.12 this subdivision becomes finally authorized unless a petition 141.13 signed by more than 15 percent of the registered voters of the 141.14 school district is filed with the school board within 30 days of 141.15 the board's adoption of a resolution stating the board's 141.16 intention to issue bonds. The percentage is to be determined 141.17 with reference to the number of registered voters in the school 141.18 district on the last day before the petition is filed with the 141.19 school board. The petition must call for a referendum on the 141.20 question of whether to issue the bonds for the projects under 141.21 this section. The approval of 50 percent plus one of those 141.22 voting on the question is required to pass a referendum 141.23 authorized by this section. 141.24 (d) The bonds may be issued in a principal amount, that 141.25 when combined with interest thereon, will be paid off with not 141.26 more than 50 percent of current and anticipated revenue for 141.27 capital facilities under this section or a successor section for 141.28 the current year plus projected revenue not greater than that of 141.29 the current year for the next ten years. Once finally 141.30 authorized, the district must set aside the lesser of the amount 141.31 necessary to make the principal and interest payments or 50 141.32 percent of the current year's revenue for capital facilities 141.33 under this section or a successor section each year in a 141.34 separate account until all principal and interest on the bonds 141.35 is paid. The district must annually transfer this amount from 141.36 its capital fund to the debt redemption fund. The bonds must be 142.1 paid off within ten years of issuance. The bonds must be issued 142.2 in compliance with chapter 475, except as otherwise provided in 142.3 this section. 142.4 (e) Notwithstanding paragraph (d), within the first five 142.5 years following voter approval of a combination according to 142.6 section 122.243, subdivision 2, bonds may be issued in a 142.7 principal amount, that when combined with interest thereon, will 142.8 be paid off with not more than 50 percent of current and 142.9 anticipated revenue for capital facilities under this section or 142.10 a successive section for the current year plus projected revenue 142.11 not greater than that of the current year for the next 20 142.12 years. All the other provisions and limitation of paragraph (d) 142.13 apply. 142.14 Sec. 7. Minnesota Statutes 1994, section 124.83, 142.15 subdivision 4, is amended to read: 142.16 Subd. 4. [HEALTH AND SAFETY LEVY.] To receive health and 142.17 safety revenue, a district may levy an amount equal to the 142.18 district's health and safety revenue as defined in subdivision 3 142.19 multiplied by the lesser of one, or the ratio of the quotient 142.20 derived by dividing the adjusted net tax capacity of the 142.21 district for the year preceding the year the levy is certified 142.22 by the actual pupil units in the district for the school year to 142.23 which the levy is attributable, to50 percent of the equalizing142.24factor$4,707.50. 142.25 Sec. 8. Minnesota Statutes 1994, section 124.84, 142.26 subdivision 3, is amended to read: 142.27 Subd. 3. [LEVY AUTHORITY.] The district may levy up to 142.28 $300,000 under this section, as approved by the commissioner. 142.29 The approved amount may be levied overfiveeight or fewer years. 142.30 Sec. 9. Minnesota Statutes 1994, section 124.91, 142.31 subdivision 3, is amended to read: 142.32 Subd. 3. [POST-JUNE 1992 LEASE PURCHASE, INSTALLMENT 142.33 BUYS.] (a) Upon application to, and approval by, the 142.34 commissioner in accordance with the procedures and limits in 142.35 subdivision 1, a district, as defined in this subdivision, may: 142.36 (1) purchase real or personal property under an installment 143.1 contract or may lease real or personal property with an option 143.2 to purchase under a lease purchase agreement, by which 143.3 installment contract or lease purchase agreement title is kept 143.4 by the seller or vendor or assigned to a third party as security 143.5 for the purchase price, including interest, if any; and 143.6 (2) annually levy the amounts necessary to pay the 143.7 district's obligations under the installment contract or lease 143.8 purchase agreement. 143.9 (b)(1) The obligation created by the installment contract 143.10 or the lease purchase agreement must not be included in the 143.11 calculation of net debt for purposes of section 475.53, and does 143.12 not constitute debt under other law. 143.13 (2) An election is not required in connection with the 143.14 execution of the installment contract or the lease purchase 143.15 agreement. 143.16 (c) The proceeds of the levy authorized by this subdivision 143.17 must not be used to acquire a facility to be primarily used for 143.18 athletic or school administration purposes. 143.19 (d) In this subdivision, "district" means: 143.20 (1) a school district required to have a comprehensive plan 143.21 for the elimination of segregation whose plan has been 143.22 determined by the commissioner to be in compliance with the 143.23 state board of education rules relating to equality of 143.24 educational opportunity and school desegregation; or 143.25 (2) a school district that participates in a joint program 143.26 for interdistrict desegregation with a district defined in 143.27 clause (1) if the facility acquired under this subdivision is to 143.28 be primarily used for the joint program. 143.29 (e) Notwithstanding subdivision 1, the prohibition against 143.30 a levy by a district to lease or rent a district-owned building 143.31 to itself does not apply to levies otherwise authorized by this 143.32 subdivision. 143.33 (f)Projects may be approved under this section by the143.34commissioner in fiscal years 1993, 1994, and 1995 only.143.35(g)For the purposes of this subdivision, any references in 143.36 subdivision 1 to building or land shall be deemed to include 144.1 personal property. 144.2 Sec. 10. Minnesota Statutes 1994, section 124.95, 144.3 subdivision 2, is amended to read: 144.4 Subd. 2. [ELIGIBILITY.] (a) The following portions of a 144.5 district's debt service levy qualify for debt service 144.6 equalization: 144.7 (1) debt service for repayment of principal and interest on 144.8 bonds issued before July 2, 1992; 144.9 (2) debt service for bonds refinanced after July 1, 1992, 144.10 if the bond schedule has been approved by the commissioner and, 144.11 if necessary, adjusted to reflect a 20-year maturity schedule; 144.12 and 144.13 (3) debt service for bonds issued after July 1, 1992, for 144.14 construction projects that have received a positive review and 144.15 comment according to section 121.15, if the commissioner has 144.16 determined that the district has met the criteria under section 144.17 124.431, subdivision 2, and if the bond schedule has been 144.18 approved by the commissioner and, if necessary, adjusted to 144.19 reflect a 20-year maturity schedule. 144.20 (b) The criterion in section 124.431, subdivision 2, 144.21 paragraph (a), clause (2), shall be considered to have been met 144.22 if the district in the fiscal year in which the bonds are 144.23 authorized at an election conducted under chapter 475: 144.24 (i) serves an average of at least 66 pupils per grade in 144.25 the grades to be served by the facility; or 144.26 (ii) is eligible for elementary or secondary sparsity 144.27 revenue. 144.28 (c) The criterion described in section 124.431, subdivision 144.29 2, paragraph (a), clause (9), does not apply to bonds authorized 144.30 by elections held before July 1, 1992. 144.31(d) Districts identified in Laws 1990, chapter 562, article144.3211, section 8, do not need to meet the criteria of section144.33124.431, subdivision 2, to qualify.144.34 Sec. 11. Minnesota Statutes 1994, section 124.95, 144.35 subdivision 4, is amended to read: 144.36 Subd. 4. [EQUALIZED DEBT SERVICE LEVY.] To obtain debt 145.1 service equalization revenue, a district must levy an amount not 145.2 to exceed the district's debt service equalization revenue times 145.3 the lesser of one or the ratio of: 145.4 (1) the quotient derived by dividing the adjusted net tax 145.5 capacity of the district for the year before the year the levy 145.6 is certified by the actual pupil units in the district for the 145.7 school year ending in the year prior to the year the levy is 145.8 certified; to 145.9 (2)50 percent of the equalizing factor as defined in145.10section 124A.02, subdivision 8, for the year to which the levy145.11is attributable$4,707.50. 145.12 Sec. 12. Minnesota Statutes 1994, section 124.95, 145.13 subdivision 6, is amended to read: 145.14 Subd. 6. [DEBT SERVICE EQUALIZATION AID PAYMENT SCHEDULE.] 145.15 Debt service equalization aid must be paid as 145.16 follows:one-third30 percent before September 15,one-third30 145.17 percent before December 15,and one-third25 percent before 145.18 March 15of each year, and a final payment of 15 percent by July 145.19 15 of the subsequent fiscal year. 145.20 Sec. 13. Minnesota Statutes 1994, section 124.961, is 145.21 amended to read: 145.22 124.961 [DEBT SERVICE APPROPRIATION.] 145.23 (a)$17,000,000 in fiscal year 1994, $26,000,000 in fiscal145.24year 1995, and $31,600,000$30,054,000 in fiscal year 1996, 145.25 $27,370,000 in fiscal year 1997, and $32,200,000 in fiscal year 145.26 1998 and each year thereafter is appropriated from the general 145.27 fund to the commissioner of education for payment of debt 145.28 service equalization aid under section 124.95. The19941998 145.29 appropriation includes$3,000,000 for 1993 and $14,000,000 for145.301994$4,830,000 for 1997 and $27,370,000 for 1998. 145.31 (b) The appropriations in paragraph (a) must be reduced by 145.32 the amount of any money specifically appropriated for the same 145.33 purpose in any year from any state fund. 145.34 Sec. 14. [ASKOV CAPITAL LOAN.] 145.35 The liability for the capital loan granted to independent 145.36 school district No. 588, Askov, in 1982, if not repaid at the 146.1 end of 30 years, is satisfied and discharged and interest on the 146.2 loan ceases. 146.3 Sec. 15. [ALTERNATIVE DEBT SERVICE PLAN.] 146.4 Notwithstanding the procedures for dealing with outstanding 146.5 debt in Minnesota Statutes, section 122.23, subdivision 16, 146.6 independent school district Nos. 789, Clarissa, and 790, Eagle 146.7 Bend, may develop an alternative plan for meeting debt service 146.8 for bonds outstanding at the time of reorganization. That plan 146.9 may provide for the obligation of paying bonds outstanding at 146.10 the time of reorganization to remain with the district that 146.11 originally issued the bonds except that the plan may provide for 146.12 independent school district No. 790, Eagle Bend, when its 146.13 outstanding debt is paid off, to continue making a debt levy and 146.14 contribute the proceeds of that levy towards the outstanding 146.15 debt of independent school district No. 789, Clarissa. This 146.16 debt plan must be approved by the commissioner of education as 146.17 in Minnesota Statutes, section 122.23, subdivision 6. Any 146.18 contributions toward the debt of independent school district No. 146.19 789, Clarissa, by independent school district No. 790, Eagle 146.20 Bend, under this section must not be considered in the 146.21 calculation of debt equalization aid for independent school 146.22 district Nos. 790, Eagle Bend, or 789, Clarissa. 146.23 Sec. 16. [ELIGIBILITY FOR DEBT SERVICE AID; 146.24 JANESVILLE-WALDORF-PEMBERTON.] 146.25 Notwithstanding Minnesota Statutes, section 124.95, 146.26 subdivision 2, independent school district No. 2835, 146.27 Janesville-Waldorf-Pemberton, meets the criterion of Minnesota 146.28 Statutes, section 124.431, subdivision 2, paragraph (a), clause 146.29 (2), if the district, in the year which the bonds are authorized 146.30 in an election conducted under Minnesota Statutes, chapter 475, 146.31 or in the prior fiscal year, serves at least 66 pupils per grade 146.32 in the grades to be served by the facility. 146.33 Sec. 17. [CAPITAL FACILITIES USE.] 146.34 Notwithstanding Minnesota Statutes, section 124.243, 146.35 subdivision 8, for fiscal year 1996 a district may use up to 146.36 one-third of its capital expenditure facilities revenue for 147.1 equipment uses under Minnesota Statutes, section 124.244. 147.2 Sec. 18. [LITCHFIELD LEASE LEVY.] 147.3 Notwithstanding the instructional purposes limitation of 147.4 Minnesota Statutes, section 124.91, subdivision 1, independent 147.5 school district No. 465, Litchfield, may apply to the 147.6 commissioner of education to make an additional capital levy 147.7 under Minnesota Statutes, section 124.91, subdivision 1, to rent 147.8 or lease a building or land for administrative purposes. The 147.9 levy may not exceed the amount necessary to obtain space similar 147.10 in size and quality to the office space already vacated for 147.11 instructional purposes. 147.12 Sec. 19. [JOINT ELEMENTARY FACILITY.] 147.13 Subdivision 1. [APPLICATION.] This section applies to 147.14 independent school district Nos. 622, North St. 147.15 Paul-Maplewood-Oakdale; 833, South Washington county; and 834, 147.16 Stillwater, and to the joint elementary facility to be operated 147.17 by the districts. 147.18 Subd. 2. [JOINT POWERS AGREEMENT.] Notwithstanding 147.19 Minnesota Statutes, section 123.35, subdivision 19a, the 147.20 districts may obligate themselves to participate in and to 147.21 provide financial support for a joint powers agreement to govern 147.22 the administration, financing, and operation of the joint 147.23 elementary facility during the period when the obligations 147.24 issued to finance the joint elementary facility remain 147.25 outstanding. 147.26 Subd. 3. [LEASING LEVY.] Notwithstanding any contrary 147.27 provision of Minnesota Statutes, section 124.91, each district 147.28 annually may levy the amount necessary to pay its proportionate 147.29 share of its obligations under the lease or a lease with option 147.30 to purchase agreement for the joint elementary facility during 147.31 the term of that agreement. The agreement is not required to 147.32 include a nonappropriation clause on the part of the districts. 147.33 An election is not required in connection with the execution of 147.34 the lease or lease with option to purchase agreement and the 147.35 obligation created by the agreement does not constitute debt and 147.36 must not be included in the calculation of net debt for any of 148.1 the districts. 148.2 Subd. 4. [FACILITY BELONGS TO EACH DISTRICT; 148.3 ENROLLMENT.] The joint elementary facility shall be considered a 148.4 facility of each of the three districts and students attending 148.5 the facility from the three districts shall be treated for all 148.6 purposes as resident pupils attending a school in their home 148.7 district. 148.8 Sec. 20. [APPROPRIATIONS.] 148.9 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 148.10 indicated in this section are appropriated from the general fund 148.11 to the department of education for the fiscal years designated. 148.12 Subd. 2. [CAPITAL EXPENDITURE FACILITIES AID.] For capital 148.13 expenditure facilities aid according to Minnesota Statutes, 148.14 section 124.243, subdivision 5: 148.15 $76,552,000 ..... 1996 148.16 $11,530,000 ..... 1997 148.17 The 1996 appropriation includes $11,214,000 for 1995 and 148.18 $65,338,000 for 1996. 148.19 The 1997 appropriation includes $11,530,000 for 1996 and 148.20 $-0- for 1997. 148.21 Subd. 3. [EQUIPMENT AID.] For equipment aid according to 148.22 Minnesota Statutes, section 124.244, subdivision 3: 148.23 $44,024,000 ..... 1996 148.24 $ 6,748,000 ..... 1997 148.25 The 1996 appropriation includes $5,782,000 for 1995 and 148.26 $38,242,000 for 1996. 148.27 The 1997 appropriation includes $6,748,000 for 1996 and 148.28 $-0- for 1997. 148.29 Subd. 4. [HEALTH AND SAFETY AID.] For health and safety 148.30 aid according to Minnesota Statutes, section 124.83, subdivision 148.31 5: 148.32 $14,725,000 ..... 1996 148.33 $11,760,000 ..... 1997 148.34 The 1996 appropriation includes $2,606,000 for 1995 and 148.35 $12,119,000 for 1996. 148.36 The 1997 appropriation includes $2,138,000 for 1996 and 149.1 $9,622,000 for 1997. 149.2 Subd. 5. [DEBT SERVICE AID.] For debt service aid 149.3 according to Minnesota Statutes, section 124.95, subdivision 5: 149.4 $30,054,000 ..... 1996 149.5 $27,370,000 ..... 1997 149.6 The 1996 appropriation includes $30,054,000 for 1996. 149.7 The 1997 appropriation includes $27,370,000 for 1997. This 149.8 appropriation is 85 percent of the aid entitlement for 1997. 149.9 Subd. 6. [PLANNING GRANT.] For a grant to independent 149.10 school district Nos. 325, Lakefield; 328, Sioux Valley; 330, 149.11 Heron Lake-Okabena; 513, Brewster; and 516, Round Lake acting as 149.12 a joint powers agreement: 149.13 $40,000 ..... 1996 149.14 The grant is to cover costs associated with planning for 149.15 facility needs for a combined district. The facilities must 149.16 provide for the location of a significant number of 149.17 noneducational student and community service programs within the 149.18 facility. The joint powers group must consult with independent 149.19 school district Nos. 324, Jackson; 177, Windom; and 518, 149.20 Worthington, and include facility needs and availability in 149.21 those districts in the group's planning. 149.22 Subd. 7. [PRESTON-FOUNTAIN; HARMONY DISTRICT.] For a grant 149.23 to the new school district comprised of independent school 149.24 district No. 233, Preston-Fountain, and independent school 149.25 district No. 228, Harmony: 149.26 $70,000 ..... 1996 149.27 This grant must be placed in the district's debt redemption 149.28 fund. The department must reduce the new district debt service 149.29 levy by this amount. 149.30 Subd. 8. [PROGRAM START-UP AND IMPLEMENTATION GRANT.] For 149.31 a grant to offset extraordinary program start-up and 149.32 implementation expenses incurred prior to the time the joint 149.33 facility in section 19 becomes operational: 149.34 $200,000 ..... 1996 149.35 This appropriation is available until June 30, 1997. 149.36 Sec. 21. [REPEALER.] 150.1 Laws 1991, chapter 265, article 5, section 23, as amended 150.2 by Laws 1992, chapter 499, article 5, section 25, is repealed 150.3 July 1, 1995. 150.4 ARTICLE 6 150.5 EDUCATION ORGANIZATION AND COOPERATION 150.6 Section 1. Minnesota Statutes 1994, section 121.912, 150.7 subdivision 6, is amended to read: 150.8 Subd. 6. [ACCOUNT TRANSFER FOR REORGANIZING DISTRICTS.] 150.9(a)A school district that has reorganized according to section 150.10 122.22, 122.23, or sections 122.241 to 122.248, or has conducted 150.11 a successful referendum on the question of combination under 150.12 section 122.243, subdivision 2, or consolidation under section 150.13 122.23, subdivision 13, or has been assigned an identification 150.14 number by the commissioner under section 122.23, subdivision 14, 150.15 may make permanent transfers between any of the funds in the 150.16 newly created or enlarged district with the exception of the 150.17 debt redemption fund, food service fund, and health and safety 150.18 account of the capital expenditure fund. Fund transfers under 150.19 this section may be madeonlyfor up to one year prior to the 150.20 effective date of combination or consolidation and during the 150.21 year following the effective date of reorganization. 150.22(b) A district that has conducted a successful referendum150.23on the question of combination under section 122.243,150.24subdivision 2, may make permanent transfers between any of the150.25funds in the district with the exception of the debt redemption150.26fund, food service fund, and health and safety account of the150.27capital expenditure fund for up to one year prior to the150.28effective date of combination under sections 122.241 to 122.248.150.29 Sec. 2. Minnesota Statutes 1994, section 122.21, 150.30 subdivision 4, is amended to read: 150.31 Subd. 4. Within six months of the time when the petition 150.32 was filed, the county board shall issue its order either 150.33 granting or denying the petition, unless all or part of the land 150.34 area described in the petition is included in a plat for 150.35 consolidation or combination which has been approved by the 150.36state boardcommissioner of education in which event, no order 151.1 may be issued while consolidation or combination proceedings are 151.2 pending. No order shall be issued which results in attaching to 151.3 a district any territory not adjoining that district, as defined 151.4 in subdivision 1(a). No order shall be issued which reduces the 151.5 size of any district to less than four sections unless the 151.6 district is not operating a school within the district. The 151.7 order may be made effective at a deferred date not later than 151.8 July 1 next following its issuance. If the petition be granted, 151.9 the auditor shall transmit a certified copy to the 151.10 commissioner. Failure to issue an order within six months of 151.11 the filing of the petition or termination of proceedings upon an 151.12 approved consolidation plat, whichever is later, is a denial of 151.13 the petition. 151.14 Sec. 3. Minnesota Statutes 1994, section 122.895, 151.15 subdivision 1, is amended to read: 151.16 Subdivision 1. [DEFINITIONS.] For the purposes of this 151.17 section, the terms defined in this subdivision have the meanings 151.18 given them. 151.19 (a) "Teacher" means a teacher as defined in section 125.12, 151.20 subdivision 1, who is employed by a district or center listed in 151.21 subdivision 2, except that it does not include a superintendent. 151.22 (b) "Cooperative" means any district or center to which 151.23 this section applies. 151.24 (c) "Withdrawal" means a school district's removal of its 151.25 students from a program of instruction, counseling, or 151.26 evaluation provided by a cooperative in order to provide the 151.27 same educational services by other means. 151.28 (d) "Education support position" means a position not 151.29 requiring a teaching license in which an employee assists a 151.30 teacher by providing instructional, counseling, or evaluative 151.31 support services directly to students. 151.32 (e) "Education support employee" means an employee holding 151.33 an education support position. 151.34 Sec. 4. Minnesota Statutes 1994, section 122.895, 151.35 subdivision 8, is amended to read: 151.36 Subd. 8. [NONLICENSED EMPLOYEES UPON DISSOLUTION.] (a) A 152.1 nonlicensed employee who is terminated by a cooperative that 152.2 dissolves shall be appointed by a district that is a member of 152.3 the dissolved cooperative to a position that is created within 152.41236 months of the dissolution of the cooperative and is 152.5 created as a result of the dissolution of the cooperative. A 152.6 position shall be offered to a nonlicensed employee, who 152.7 fulfills the qualifications for that position, in order of the 152.8 employee's seniority within the dissolved cooperative. 152.9 (b) When an education support employee is terminated by a 152.10 cooperative that dissolves, a district that is a member of the 152.11 dissolved cooperative shall appoint the employee to an education 152.12 support position if the position is created within 36 months of 152.13 the dissolution of the cooperative as a result of the 152.14 dissolution. An education support position shall be offered to 152.15 an education support employee, who fulfills the qualifications 152.16 for that position, in order of the employee's seniority within 152.17 the dissolved cooperative. 152.18 (c) An employee appointed according to this subdivision 152.19 shall receive credit for the employee's: 152.20 (1) continuous years of service with the cooperative on the 152.21 appointing district's compensation schedule and seniority list; 152.22 and 152.23 (2) unused sick leave accumulated while employed by the 152.24 cooperative. 152.25 (d) Notwithstanding section 179A.12 or Minnesota Rules, 152.26 part 5510.0510, subparts 1 to 4, a representation petition 152.27 seeking the exclusive representation of a unit of education 152.28 support employees employed by a district formerly a member of a 152.29 dissolved cooperative may be considered by the commissioner of 152.30 the bureau of mediation services at any time within 11 months of 152.31 the dissolution of the cooperative. 152.32 Sec. 5. Minnesota Statutes 1994, section 122.895, 152.33 subdivision 9, is amended to read: 152.34 Subd. 9. [NONLICENSED EMPLOYEES UPON WITHDRAWAL.] (a) A 152.35 nonlicensed employee of a cooperative whosepositionactive 152.36 employment is discontinued or reduced as a result of the 153.1 withdrawal of a member district from the cooperative shall be 153.2 appointed by the withdrawing member district to a position that 153.3 is created within1236 months of the withdrawal and is created 153.4 as a result of the withdrawal of the member district. A 153.5 position shall be offered to a nonlicensed employee, who 153.6 fulfills the qualifications for that position, in order of the 153.7 employee's seniority within the cooperative from which a member 153.8 district withdraws. 153.9 (b) When an education support employee of a cooperative has 153.10 active employment discontinued or reduced as a result of the 153.11 withdrawal of a member district from the cooperative, the 153.12 withdrawing member district shall appoint the employee to an 153.13 education support position if the position is created within 36 153.14 months of the withdrawal as a result of the withdrawal of the 153.15 member district. An education support position shall be offered 153.16 to an education support employee, who meets the qualifications 153.17 for that position, in order of the employee's seniority within 153.18 the cooperative from which a member district withdraws. 153.19 (c) An employee appointed according to this subdivision 153.20 shall receive credit for the employee's: 153.21 (1) continuous years of service with the cooperative on the 153.22 appointing district's compensation schedule and seniority list; 153.23 and 153.24 (2) unused sick leave accumulated while employed by the 153.25 cooperative. 153.26 (d) Notwithstanding section 179A.12 or Minnesota Rules, 153.27 part 5510.0510, subparts 1 to 4, a representation petition 153.28 seeking the exclusive representation of a unit of education 153.29 support employees employed by a member district which has 153.30 withdrawn from a cooperative may be considered by the 153.31 commissioner of the bureau of mediation services at any time 153.32 within 11 months of the district's withdrawal from the 153.33 cooperative. 153.34 Sec. 6. Minnesota Statutes 1994, section 124.2725, 153.35 subdivision 1, is amended to read: 153.36 Subdivision 1. [ELIGIBILITY.] A school district is 154.1 eligible for cooperation and combination revenue if it has a 154.2 plan approved by the commissioner according to section 154.3 122.243 and it levied under subdivision 3 for taxes payable in 154.4 1995. 154.5 Sec. 7. Minnesota Statutes 1994, section 124.2725, 154.6 subdivision 3, is amended to read: 154.7 Subd. 3. [COOPERATION AND COMBINATION LEVY.] To obtain 154.8 cooperation and combination revenue, a district may levy an 154.9 amount equal to the cooperation and combination revenue 154.10 multiplied by the lesser of one or the following ratio: 154.11 (1) the quotient derived by dividing the adjusted net tax 154.12 capacity for the district in the year preceding the year the 154.13 levy is certified by the actual pupil units in the district for 154.14 the year to which the levy is attributable, to 154.15 (2) thepercentage,amount specified in subdivision 4, of154.16the equalizing factorfor the school year to which the levy is 154.17 attributable. 154.18 Sec. 8. Minnesota Statutes 1994, section 124.2725, 154.19 subdivision 4, is amended to read: 154.20 Subd. 4. [INCREASING LEVY.] (a) For districts that did not 154.21 enter into an agreement under section 122.541 at least three 154.22 years before the date of a successful referendum held under 154.23 section 122.243, subdivision 2, and that combine without 154.24 cooperating, thepercentageamount in subdivision 3, clause (2), 154.25 shall be: 154.26 (1)50 percent$4,707.50 for the first year of combination; 154.27 and 154.28 (2)25 percent$2,353.75 for the second year of combination. 154.29 (b) For districts that entered into an agreement under 154.30 section 122.541 at least three years before the date of a 154.31 successful referendum held under section 122.243, subdivision 2, 154.32 and combine without cooperating, the percentages in subdivision 154.33 3, clause (2), shall be: 154.34 (1)100 percent$9,415 for the first year of combination; 154.35 (2)75 percent$7,061.25 for the second year of 154.36 combination; 155.1 (3)50 percent$4,707.50 for the third year of combination; 155.2 and 155.3 (4)25 percent$2,353.75 for the fourth year of combination. 155.4 (c) For districts that combine after one year of 155.5 cooperation, the percentage in subdivision 3, clause (2), shall 155.6 be: 155.7 (1)100 percent$9,415 for the first year of cooperation; 155.8 (2)75 percent$7,061.25 for the first year of combination; 155.9 (3)50 percent$4,707.50 for the second year of 155.10 combination; and 155.11 (4)25 percent$2,353.75 for the third year of combination. 155.12 (d) For districts that combine after two years of 155.13 cooperation, the percentage in subdivision 3, clause (2), shall 155.14 be: 155.15 (1)100 percent$9,415 for the first year of cooperation; 155.16 (2)75 percent$7,061.25 for the second year of 155.17 cooperation; 155.18 (3)50 percent$4,707.50 for the first year of combination; 155.19 and 155.20 (4)25 percent$2,353.75 for the second year of combination. 155.21 Sec. 9. Minnesota Statutes 1994, section 124.2725, 155.22 subdivision 15, is amended to read: 155.23 Subd. 15. [RETIREMENT AND SEVERANCE LEVY.] A cooperating 155.24 or combined district that levied under subdivision 3 for taxes 155.25 payable in 1995 may levy for severance pay or early retirement 155.26 incentives for licensed and nonlicensed employees who retire 155.27 early as a result of the cooperation or combination. 155.28 Sec. 10. Minnesota Statutes 1994, section 124.2726, 155.29 subdivision 1, is amended to read: 155.30 Subdivision 1. [ELIGIBILITY AND USE.] A school district 155.31 that has been reorganized after June 30, 1994, under section 155.32 122.23and has not received revenue under section 124.2725is 155.33 eligible for consolidation transition revenue. Revenue is equal 155.34 to the sum of aid under subdivision 2 and levy under subdivision 155.35 3. Consolidation transition revenue may only be used according 155.36 to this section.Revenue must initially be used for the payment156.1of district costs for the early retirement incentives granted by156.2the district under section 122.23, subdivision 20. Any revenue156.3under subdivision 2 remaining after the payment of district156.4costs for the early retirement incentives must be used to reduce156.5operating debt as defined in section 121.915. Any additional156.6aid remaining after the reduction of operating debt must be156.7deposited in the district's general fund.Revenue must be used 156.8 for the following purposes and may be distributed among these 156.9 purposes at the discretion of the district: 156.10 (1) to offer early retirement incentives as provided by 156.11 section 122.23, subdivision 20; 156.12 (2) to reduce operating debt as defined in section 121.915; 156.13 (3) to enhance learning opportunities for students in the 156.14 reorganized district; and 156.15 (4) for other costs incurred in the reorganization. 156.16 Revenue received and utilized under clause (3) or (4) may 156.17 be expended for operating, facilities, and/or equipment. 156.18 Revenue received under this section shall not be included in the 156.19 determination of the reduction under section 124A.26, 156.20 subdivision 1. 156.21 Sec. 11. Minnesota Statutes 1994, section 124.2726, 156.22 subdivision 2, is amended to read: 156.23 Subd. 2. [AID.] (a) Consolidation transition aid is equal 156.24 to $200 times the number of actual pupil units in the newly 156.25 created district in the year of consolidation and $100 times the 156.26 number of actual pupil units in the first year following the 156.27 year of consolidation. The number of pupil units used to 156.28 calculate aid in either year shall not exceed 1,000 for 156.29 districts consolidating July 1, 1994, and 1,500 for districts 156.30 consolidating July 1, 1995, and thereafter. 156.31 (b) If the total appropriation for consolidation transition 156.32 aid for any fiscal year, plus any amount transferred under 156.33 section 124.14, subdivision 7, is insufficient to pay all 156.34 districts the full amount of aid earned, the department of 156.35 education shall first pay the districts in the first year 156.36 following the year of consolidation the full amount of aid 157.1 earned and distribute any remaining funds to the newly created 157.2 districts in the first year of consolidation. 157.3 Sec. 12. Minnesota Statutes 1994, section 124.2726, 157.4 subdivision 4, is amended to read: 157.5 Subd. 4. [NEW DISTRICTS.] If a district consolidates with 157.6 another district that has receivedconsolidation transition157.7 aid under 124.2725 or 124.2726 within six years of the effective 157.8 date of the new consolidation, only the pupil units in the 157.9 district or districts not previously reorganized shall be 157.10 counted for aid purposes under subdivision 2. If two or more 157.11 districts consolidate andbothall districts received aid under 157.12 subdivision 2 within six years of the effective date of the new 157.13 consolidation, only one quarter of the pupil units in the newly 157.14 created district shall be used to determine aid under 157.15 subdivision 2. 157.16 Sec. 13. Minnesota Statutes 1994, section 124.2728, 157.17 subdivision 1, is amended to read: 157.18 Subdivision 1. [ELIGIBILITY.] A school district that 157.19 reorganizes under section 122.23 or sections 122.241 to 122.248 157.20 effective onor afterJuly 1, 1994, is eligible for special 157.21 consolidation aid under this section. A district may receive 157.22 aid under this section for only three years. 157.23 Sec. 14. [LAC QUI PARLE VALLEY JOINT DISTRICT.] 157.24 Subdivision 1. [FUND TRANSFER.] Notwithstanding Minnesota 157.25 Statutes, section 121.912, or any other law to the contrary, 157.26 independent school district No. 377, Madison, may transfer 157.27 $1,000,000 from its capital expenditure fund to the trust and 157.28 agency fund of joint powers school district No. 6011, Lac qui 157.29 Parle Valley. 157.30 Subd. 2. [BALLOT ISSUES.] Notwithstanding Minnesota 157.31 Statutes, sections 122.531 and 124A.03, the referendum held in 157.32 the member districts of joint school district No. 6011, Lac qui 157.33 Parle Valley, may, as part of the ballot question to approve the 157.34 plan to combine the districts, include a reference to the 157.35 referendum revenue amount that will result in not more than $315 157.36 per pupil unit of revenue in the combined district. 158.1 Subd. 3. [LEVY REDUCTION.] Beginning with taxes certified 158.2 in 2004 payable in 2005, the tax levy on the property that was 158.3 in independent school district No. 2153, 158.4 Madison-Marietta-Nassau, on June 30, 1996, is reduced by 158.5 $100,000 per year for a ten-year period. In each fiscal year 158.6 for which this levy that would have been attributed, the amounts 158.7 necessary to make up for the levy reduction are transferred from 158.8 the trust and agency fund of the successor district to joint 158.9 district No. 6011, Lac qui Parle Valley, to the appropriate 158.10 funds as necessary to replace the levy reduction. Any funds 158.11 remaining in the trust and agency fund as a result of the 158.12 transfer authorized in subdivision 1 after the ten-year period 158.13 are transferred to the capital expenditure fund or its successor 158.14 fund of the district. 158.15 Subd. 4. [REORGANIZATION OPERATING DEBT LEVY.] Independent 158.16 school district No. 128, Milan, and its successor district may 158.17 certify the levy for reorganization operating debt authorized in 158.18 Minnesota Statutes, section 122.531, subdivision 4a, beginning 158.19 in the year of a successful vote to combine. The levy must be 158.20 certified according to Minnesota Statutes, section 122.531, 158.21 subdivision 4a, paragraph (a), clause (1), except that the levy 158.22 may be certified over less than five years. The reorganization 158.23 operating debt levy is reduced by the amount of any state grant 158.24 for the same purpose. 158.25 Sec. 15. [LAKE PARK-AUDUBON CONSOLIDATION PROVISION.] 158.26 Notwithstanding Minnesota Statutes, sections 122.23 and 158.27 205A.12, independent school district No. 21, Audubon, and 158.28 independent school district No. 24, Lake Park, as part of an 158.29 agreement to consolidate according to section 122.23, may agree 158.30 to provide for two multimember election districts, with each 158.31 district entitled to elect three members of the board of the 158.32 consolidated district. This section applies until it is 158.33 necessary to take action for the first election using census 158.34 data from the year 2000. 158.35 Sec. 16. [HACA ALLOCATION; EAST CENTRAL.] 158.36 Independent school district No. 2580, East Central, may, by 159.1 school board resolution, reallocate any portion of its homestead 159.2 and agricultural credit aid attributable to the levies in the 159.3 debt redemption fund to the debt service levies spread 159.4 separately upon the tax bases of former independent school 159.5 district Nos. 566, Askov, and 576, Sandstone. 159.6 Sec. 17. [PILOT ENHANCED PAIRING AGREEMENT.] 159.7 Subdivision 1. [AGREEMENT.] Notwithstanding any law to the 159.8 contrary, any two or more of the boards of independent school 159.9 district Nos. 648, Danube, 654, Renville, 655, Sacred Heart, and 159.10 631, Belview, may enter into an enhanced pairing agreement 159.11 providing for the discontinuance of one or more grades, or 159.12 portions of those grades, and for the instruction of those 159.13 grades in another district that is subject to the agreement. 159.14 The agreement, and all subsequent amendments, if any, shall be 159.15 filed with the commissioner of education. 159.16 Subd. 2. [SINGLE BOARD.] The districts shall provide in 159.17 the enhanced pairing agreement that the governance of the 159.18 districts will be by the combined membership of the separate 159.19 boards acting as a single board for purposes of quorum and 159.20 passing resolutions. A quorum must include a minimum of one 159.21 member from each of the separate boards. The membership of the 159.22 separate boards may be reduced to five members in a manner 159.23 consistent with Minnesota Statutes, section 123.33, subdivision 159.24 1. The actions reserved for the separate boards shall be 159.25 ratification of amendments to the agreement, serving a notice of 159.26 withdrawal from the agreement, and other items reserved for the 159.27 separate boards as defined in the agreement. 159.28 Subd. 3. [PERSONNEL.] The districts subject to the 159.29 enhanced pairing agreement must have one exclusive bargaining 159.30 representative, one master contract, and a combined seniority 159.31 list. The teachers and other employees of the districts will be 159.32 employees of the single board established by the agreement 159.33 unless specifically excluded in the agreement. If the agreement 159.34 dissolves or a board withdraws from the agreement, the affected 159.35 employees shall be provided for in a manner consistent with 159.36 Minnesota Statutes, section 122.895. 160.1 Subd. 4. [FINANCIAL.] (a) Fiscal operations shall be 160.2 merged under the enhanced pairing agreement, and the single 160.3 board shall be the fiscal agent to meet reporting requirements. 160.4 The department of education shall assign a single identification 160.5 number to apply to the districts subject to the agreement. 160.6 Levies shall be made jointly except for levies under Minnesota 160.7 Statutes, sections 124A.03 and 124.97. Districts subject to the 160.8 agreement shall be considered a single independent school 160.9 district for purposes of fees or dues assessments. 160.10 (b) Title to all the unattached property and all cash 160.11 reserves of any district subject to the enhanced pairing 160.12 agreement shall become the property of the single board unless 160.13 otherwise provided for in the agreement. All legally valid and 160.14 enforceable claims and contract obligations pass to the single 160.15 board. For purposes of litigation, the districts subject to the 160.16 agreement may be recognized singly or jointly. If the agreement 160.17 dissolves or a board withdraws from the agreement, the 160.18 commissioner shall divide assets and liabilities of the single 160.19 board proportionately based on the weighted average daily 160.20 membership over the last three years. 160.21 Subd. 5. [NOTICE AND HEARING.] Prior to entering into an 160.22 enhanced pairing agreement, the school board shall consult with 160.23 the community at an informational meeting. The board shall 160.24 publish notice of the meeting in the official newspaper of the 160.25 district. 160.26 Sec. 18. [APPROPRIATIONS.] 160.27 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 160.28 indicated in this section are appropriated from the general fund 160.29 or other named fund to the department of education for the 160.30 fiscal years designated. 160.31 Subd. 2. [CAPITAL FACILITY GRANTS FOR COOPERATION AND 160.32 COMBINATION.] For competitive grants under Minnesota Statutes, 160.33 section 124C.60: 160.34 $ 408,000 ..... 1996 160.35 $ -0- ..... 1997 160.36 Subd. 3. [SPECIAL CONSOLIDATION AID.] For special 161.1 consolidation aid under Minnesota Statutes, section 124.2728: 161.2 $ 75,000 ..... 1996 161.3 $ 40,000 ..... 1997 161.4 The 1996 appropriation includes $12,000 for 1995 and 161.5 $63,000 for 1996. 161.6 The 1997 appropriation includes $9,000 for 1996 and $31,000 161.7 for 1997. 161.8 Any balance in the first year does not cancel but is 161.9 available in the second year. 161.10 Subd. 4. [MILAN REORGANIZATION OPERATING DEBT.] For a 161.11 grant to independent school district No. 128, Milan, to retire 161.12 operating debt: 161.13 $ 36,000 ..... 1996 161.14 $ 36,000 ..... 1997 161.15 Subd. 5. [CONSOLIDATION TRANSITION AID.] For districts 161.16 consolidating under Minnesota Statutes, section 124.2726: 161.17 $ 991,000 ..... 1996 161.18 $1,153,000 ..... 1997 161.19 The 1996 appropriation includes $75,000 for 1995 and 161.20 $916,000 for 1996. 161.21 The 1997 appropriation includes $162,000 for 1996 and 161.22 $991,000 for 1997. 161.23 Any balance in the first year does not cancel but is 161.24 available in the second year. 161.25 Subd. 6. [COOPERATION AND COMBINATION AID.] For aid for 161.26 districts that cooperate and combine according to Minnesota 161.27 Statutes, section 124.2725: 161.28 $3,393,000 ..... 1996 161.29 $2,044,000 ..... 1997 161.30 The 1996 appropriation includes $542,000 for 1995 and 161.31 $2,851,000 for 1996. 161.32 The 1997 appropriation includes $503,000 for 1996 and 161.33 $1,541,000 for 1997. 161.34 Any balance in the first year does not cancel but is 161.35 available in the second year. 161.36 Subd. 7. [DISTRICT COOPERATION REVENUE.] For district 162.1 cooperation revenue aid: 162.2 $13,485,000 ..... 1996 162.3 $12,143,000 ..... 1997 162.4 The 1996 appropriation includes $2,115,000 for 1995 and 162.5 $11,370,000 for 1996. 162.6 The 1997 appropriation includes $2,006,000 for 1996 and 162.7 $10,137,000 for 1997. 162.8 Sec. 19. [EFFECTIVE DATE.] 162.9 Sections 3 to 5, and 14, subdivision 2, are effective the 162.10 day following final enactment. Section 14, subdivision 1, is 162.11 effective retroactive to January 1, 1989. Section 14, 162.12 subdivisions 3 and 4, and section 18, subdivision 4, are 162.13 effective following the successful vote to consolidate effective 162.14 July 1, 1996, by all the members of joint district No. 6011, Lac 162.15 qui Parle Valley. 162.16 ARTICLE 7 162.17 EDUCATION EXCELLENCE 162.18 Section 1. Minnesota Statutes 1994, section 121.11, 162.19 subdivision 7c, is amended to read: 162.20 Subd. 7c. [RESULTS-ORIENTED GRADUATION RULE.] (a) The 162.21 legislature is committed to establishing a rigorous, 162.22 results-oriented graduation rule for Minnesota's public school 162.23 students. To that end, the state board shall use its rulemaking 162.24 authority under subdivision 7b to adopt a statewide, 162.25 results-oriented graduation rule to be implemented starting with 162.26 students beginning ninth grade in the 1996-1997 school year. 162.27 The board shall not prescribe in rule or otherwise the delivery 162.28 system, form of instruction, or a single statewide form of 162.29 assessment that local sites must use to meet the requirements 162.30 contained in this rule. 162.31 (b) Assessments used to measure knowledge required by all 162.32 students for graduation must be developed according to the most 162.33 current version of professional standards for educational 162.34 testing. 162.35 (c) The content of the graduation rule must differentiate 162.36 between minimum competencies and rigorous standards. When fully 163.1 implemented, the requirements for high school graduation in 163.2 Minnesota, including both basic requirements and the required 163.3 profile of learning, shall include a broad range of academic 163.4 experience and accomplishment necessary to achieve the goal of 163.5 preparing students to function effectively as purposeful 163.6 thinkers, effective communicators, self-directed learners, 163.7 productive group participants, and responsible citizens. 163.8 (d) The state board shall periodically review and report on 163.9 the assessment process and student achievement with the 163.10 expectation of raising the standards and expanding high school 163.11 graduation requirements. 163.12 (e) The state board shall report to the legislature 163.13 annually by January 15 on its progress in developing and 163.14 implementing the graduation requirements until such time as all 163.15 the graduation requirements are implemented. 163.16 Sec. 2. Minnesota Statutes 1994, section 123.3514, 163.17 subdivision 4d, is amended to read: 163.18 Subd. 4d. [ENROLLMENT PRIORITY.] A post-secondary 163.19 institution shall give priority to its post-secondary students 163.20 when enrolling 11th and 12th grade pupils in its coursesfor163.21secondary credit. A post-secondary institution may provide 163.22 information about its programs to a secondary school or to a 163.23 pupil or parent, but it may not advertise or otherwise recruit 163.24 or solicit the participation on financial grounds, secondary 163.25 pupils to enroll in its programs. An institution shall not 163.26 enroll secondary pupils, for post-secondary enrollment options 163.27 purposes, in remedial, developmental, or other courses that are 163.28 not college level. Once a pupil has been enrolled in a 163.29 post-secondary course under this section, the pupil shall not be 163.30 displaced by another student. 163.31 Sec. 3. [PSEO STUDY.] 163.32 The legislative audit commission is asked to request that 163.33 the office of the legislative auditor conduct a study of the 163.34 post-secondary enrollment options program under Minnesota 163.35 Statutes, section 123.3514, including an assessment of the 163.36 number of students participating, their demographic 164.1 characteristics, the types of courses being taken, the fiscal 164.2 impact of the program, program compliance, and whether the 164.3 program is responsive to parents, students, and teacher input. 164.4 Sec. 4. [YEAR-ROUND SCHOOL/EXTENDED WEEK OR DAY PILOT 164.5 PROGRAMS.] 164.6 Subdivision 1. [ESTABLISHMENT.] An extended school 164.7 year/week/day pilot program is established to increase student 164.8 achievement, skills, and self-confidence through the flexible 164.9 use of learning time by implementing multitrack year-round 164.10 school or extending the standard school week or day. Year-round 164.11 school/extended week or day pilot program grants shall be 164.12 available to independent school district Nos. 911, Cambridge; 164.13 624, White Bear Lake; 625, St. Paul; 833, South Washington 164.14 county; and two rural school districts selected by the 164.15 commissioner of education. 164.16 Subd. 2. [APPLICATION; EVALUATION.] (a) To participate in 164.17 the pilot program, a district shall submit an application to the 164.18 commissioner of education in the form and manner prescribed by 164.19 the commissioner. The application shall include a plan for 164.20 developing and implementing multitrack year-round school or an 164.21 extended learning time program that provides the following: 164.22 (1) more time for student learning; 164.23 (2) more varied resources to meet student learning styles; 164.24 (3) learning opportunities that typically are not available 164.25 in the regular student day; 164.26 (4) home, school, and community involvement, support, and 164.27 communication; 164.28 (5) preprogram and postprogram student evaluations; and 164.29 (6) more efficient use of facilities and other resources. 164.30 Subd. 3. [YEAR-ROUND SCHOOL/EXTENDED SCHOOL WEEK OR DAY 164.31 PILOT PROGRAM GRANTS.] Year-round school/extended week or day 164.32 pilot program grants may be used for planning, flexible 164.33 staffing, transportation, technology necessary to implement the 164.34 multitrack year-round school or extended learning time program, 164.35 or to install or improve heating, ventilation, and air 164.36 conditioning systems in existing buildings to accommodate 165.1 year-round use of the buildings. Grant proceeds may also be 165.2 used for deferred maintenance approved by the commissioner. 165.3 Funds used for capital improvements shall be deposited in the 165.4 appropriate fund. 165.5 Sec. 5. [APPROPRIATIONS.] 165.6 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 165.7 indicated in this section are appropriated from the general fund 165.8 to the department of education for the fiscal years designated. 165.9 Subd. 2. [ADVANCED PLACEMENT AND INTERNATIONAL 165.10 BACCALAUREATE PROGRAMS.] For the state advanced placement and 165.11 international baccalaureate programs, including training 165.12 programs, support programs, and examination fee subsidies: 165.13 $875,000 ..... 1996 165.14 $875,000 ..... 1997 165.15 Of this amount $200,000 each year is for training and 165.16 support programs under Minnesota Statutes, section 126.239, and 165.17 the balance is for examination fee subsidies. Notwithstanding 165.18 Minnesota Statutes, section 126.239, subdivision 3, in each 165.19 year, the commissioner shall pay the fee for one advanced 165.20 placement or international baccalaureate examination for the 165.21 first examination each student takes. The commissioner shall 165.22 pay 50 percent of the fee for each additional examination a 165.23 student takes or more than 50 percent if the student meets the 165.24 low-income guidelines established by the commissioner. If this 165.25 amount is not adequate, the commissioner may pay less than 50 165.26 percent for the additional examinations. 165.27 Any balance in the first year does not cancel but is 165.28 available in the second year. 165.29 Subd. 3. [SCHOOL RESTRUCTURING GRANTS.] For school 165.30 restructuring: 165.31 $300,000 ..... 1996 165.32 $300,000 ..... 1997 165.33 This appropriation is for a grant to a nonstate 165.34 organization to develop systemic site decision-making models and 165.35 implement systemic site decision-making in school districts. 165.36 Any balance in the first year does not cancel but is 166.1 available in the second year. 166.2 Subd. 4. [YEAR-ROUND SCHOOL/EXTENDED WEEK OR DAY PILOT 166.3 PROGRAM GRANTS.] For year-round school/extended week or day 166.4 pilot program grants: 166.5 $1,800,000 ..... 1996 166.6 $500,000 is for a grant to independent school district No. 166.7 624, White Bear Lake. 166.8 $500,000 is for a grant to independent school district No. 166.9 833, South Washington county. 166.10 $100,000 is for a grant to independent school district No. 166.11 911, Cambridge. 166.12 $300,000 is for a grant to independent school district No. 166.13 625, St. Paul. 166.14 $400,000 is for grants to two rural school districts 166.15 selected by the commissioner of education. 166.16 This appropriation is available until June 30, 1997. 166.17 Sec. 6. [REPEALER.] 166.18 Minnesota Statutes 1994, section 125.138, subdivisions 6, 166.19 7, 8, 9, 10, and 11; is repealed. 166.20 Laws 1992, chapter 499, article 7, section 27, is repealed. 166.21 ARTICLE 8 166.22 OTHER EDUCATION PROGRAMS 166.23 Section 1. [124.177] [PSEO REPLACEMENT AID.] 166.24 Subdivision 1. [ELIGIBILITY.] A school district that meets 166.25 the following criteria is eligible for PSEO replacement aid: 166.26 (1) the number of pupils or portions of pupils in average 166.27 daily membership using the post-secondary enrollment options 166.28 program exceeds four percent of the district's enrollment in 166.29 grades 11 and 12; 166.30 (2) the enrollment in average daily membership in the 166.31 district is less in the current year than it was five years 166.32 previous; and 166.33 (3) the district is adjacent to at least two districts that 166.34 are eligible for elementary or secondary sparsity revenue. 166.35 Subd. 2. [AID AMOUNT.] PSEO replacement aid equals: 166.36 (1) the number of pupils or portions of pupils in average 167.1 daily membership using the post-secondary enrollment options 167.2 program for the portion of time not attending the school 167.3 district, minus 167.4 (2) the number of pupils in average daily membership in 167.5 grades 11 and 12 in the district multiplied by four percent, 167.6 multiplied by 167.7 (3) the secondary pupil weighting of 1.3, multiplied by 167.8 (4) the basic formula allowance for the fiscal year. 167.9 The PSEO replacement aid is not less than zero. 167.10 Sec. 2. Minnesota Statutes 1994, section 124.214, 167.11 subdivision 2, is amended to read: 167.12 Subd. 2. [ABATEMENTS.] Whenever by virtue of chapter 278, 167.13 sections 270.07, 375.192, or otherwise, the net tax capacity of 167.14 any school district for any taxable year is changed after the 167.15 taxes for that year have been spread by the county auditor and 167.16 the local tax rate as determined by the county auditor based 167.17 upon the original net tax capacity is applied upon the changed 167.18 net tax capacities, the county auditor shall, prior to February 167.19 1 of each year, certify to the commissioner of education the 167.20 amount of any resulting net revenue loss that accrued to the 167.21 school district during the preceding year. Each year, the 167.22 commissioner shall pay an abatement adjustment to the district 167.23 in an amount calculated according to the provisions of this 167.24 subdivision. This amount shall be deducted from the amount of 167.25 the levy authorized by section 124.912, subdivision 9. The 167.26 amount of the abatement adjustment shall be the product of: 167.27 (1) the net revenue loss as certified by the county 167.28 auditor, times 167.29 (2) the ratio of: 167.30 (a) the sum of the amounts of the district's certified levy 167.31 in the preceding year according to the following: 167.32 (i) section 124A.23 if the districtreceivesreceived 167.33 general education aid according to that section for the second 167.34 preceding year,or section 124B.20, if the education district of167.35which the district is a member receives general education aid167.36according to that section;168.1 (ii) section 124.226, subdivisions 1 and 4, if the district 168.2receivesreceived transportation aid according to section 168.3 124.225 for the second preceding year; 168.4 (iii) section 124.243, if the districtreceivesreceived 168.5 capital expenditure facilities aid according to that section for 168.6 the second preceding year; 168.7 (iv) section 124.244, if the districtreceivesreceived 168.8 capital expenditure equipment aid according to that section for 168.9 the second preceding year; 168.10 (v) section 124.83, if the districtreceivesreceived 168.11 health and safety aid according to that section for the second 168.12 preceding year; 168.13 (vi) sections 124.2713, 124.2714, and 124.2715, if the 168.14 districtreceivesreceived aid for community education programs 168.15 according to any of those sections for the second preceding 168.16 year; 168.17 (vii) section 124.2711, subdivision 2a, if the district 168.18receivesreceived early childhood family education aid according 168.19 to section 124.2711 for the second preceding year; 168.20 (viii) section 124.321, subdivision 3, if the district 168.21receivesreceived special education levy equalization aid 168.22 according to that section for the second preceding year; 168.23 (ix) section 124A.03, subdivision 1g, if the district 168.24receivesreceived referendum equalization aid according to that 168.25 section for the second preceding year; and 168.26 (x) section 124A.22, subdivision 4a, if the district 168.27receivesreceived training and experience aid according to that 168.28 section for the second preceding year; 168.29 (b) to the total amount of the district's certified levy in 168.30 the preceding October, plus or minus auditor's adjustments. 168.31 Sec. 3. Minnesota Statutes 1994, section 124.214, 168.32 subdivision 3, is amended to read: 168.33 Subd. 3. [EXCESS TAX INCREMENT.] If a return of excess tax 168.34 increment is made to a school district pursuant to section 168.35 469.176, subdivision 2, or upon decertification of a tax 168.36 increment district, the school district's aid and levy 169.1 limitations must be adjusted for the fiscal year in which the 169.2 excess tax increment is paid under the provisions of this 169.3 subdivision. 169.4 (a) An amount must be subtracted from the school district's 169.5 aid for the current fiscal year equal to the product of: 169.6 (1) the amount of the payment of excess tax increment to 169.7 the school district, times 169.8 (2) the ratio of: 169.9 (A) the sum of the amounts of the school district's 169.10 certified levy for the fiscal year in which the excess tax 169.11 increment is paid according to the following: 169.12 (i) section 124A.23, if the districtreceivesreceived 169.13 general education aid according to that section, or section169.14124B.20, if the education district of which the district is a169.15member receives general education aid according to that169.16sectionfor the second preceding year; 169.17 (ii) section 124.226, subdivisions 1 and 4, if the school 169.18 districtreceivesreceived transportation aid according to 169.19 section 124.225 for the second preceding year; 169.20 (iii) section 124.243, if the districtreceivesreceived 169.21 capital expenditure facilities aid according to that section for 169.22 the second preceding year; 169.23 (iv) section 124.244, if the districtreceivesreceived 169.24 capital expenditure equipment aid according to that section for 169.25 the second preceding year; 169.26 (v) section 124.83, if the districtreceivesreceived 169.27 health and safety aid according to that section for the second 169.28 preceding year; 169.29 (vi) sections 124.2713, 124.2714, and 124.2715, if the 169.30 districtreceivesreceived aid for community education programs 169.31 according to any of those sections for the second preceding 169.32 year; 169.33 (vii) section 124.2711, subdivision 2a, if the district 169.34receivesreceived early childhood family education aid according 169.35 to section 124.2711 for the second preceding year; 169.36 (viii) section 124.321, subdivision 3, if the district 170.1receivesreceived special education levy equalization aid 170.2 according to that section for the second preceding year; 170.3 (ix) section 124A.03, subdivision 1g, if the district 170.4receivesreceived referendum equalization aid according to that 170.5 section for the second preceding year; and 170.6 (x) section 124A.22, subdivision 4a, if the district 170.7receivesreceived training and experience aid according to that 170.8 section for the second preceding year; 170.9 (B) to the total amount of the school district's certified 170.10 levy for the fiscal year, plus or minus auditor's adjustments. 170.11 (b) An amount must be subtracted from the school district's 170.12 levy limitation for the next levy certified equal to the 170.13 difference between: 170.14 (1) the amount of the distribution of excess increment, and 170.15 (2) the amount subtracted from aid pursuant to clause (a). 170.16 If the aid and levy reductions required by this subdivision 170.17 cannot be made to the aid for the fiscal year specified or to 170.18 the levy specified, the reductions must be made from aid for 170.19 subsequent fiscal years, and from subsequent levies. The school 170.20 district shall use the payment of excess tax increment to 170.21 replace the aid and levy revenue reduced under this subdivision. 170.22 This subdivision applies only to the total amount of excess 170.23 increments received by a school district for a calendar year 170.24 that exceeds $25,000. 170.25 Sec. 4. Minnesota Statutes 1994, section 124.248, is 170.26 amended to read: 170.27 124.248 [REVENUE FORAN OUTCOME-BASEDA RESULTS-ORIENTED 170.28 CHARTER SCHOOL.] 170.29 Subdivision 1. [GENERAL EDUCATION REVENUE.] General 170.30 education revenue shall be paid toan outcome-baseda charter 170.31 school as though it were a school district. The general 170.32 education revenue for each pupil unit is the state average 170.33 general education revenue per pupil unit, calculated without 170.34 compensatory revenue, plus compensatory revenue as though the 170.35 school were a school district. 170.36 Subd. 1a. [TRANSPORTATION REVENUE.] Transportation revenue 171.1 shall be paid to a charter school that provides transportation 171.2 services according to section 120.064, subdivision 15, as though 171.3 it were a school district. Transportation aid shall equal 171.4 transportation revenue. 171.5 (a) For the first two years that a charter school is 171.6 providing transportation services, the regular transportation 171.7 allowance for the charter school shall be equal to the regular 171.8 transportation allowance for the school district in which the 171.9 charter school is located. For the third year of transportation 171.10 services and later fiscal years, the predicted base cost for the 171.11 charter school shall be equal to the predicted base cost for the 171.12 school district in which the charter school is located. 171.13 (b) For the first two years that a charter school is 171.14 providing transportation services, the nonregular transportation 171.15 revenue equals the charter school's actual cost in the current 171.16 school year for nonregular transportation services, minus the 171.17 amount of regular transportation revenue attributable to FTE's 171.18 in the handicapped category in the current school year. For the 171.19 third year of transportation services and later fiscal years, 171.20 the nonregular transportation revenue shall be computed 171.21 according to section 124.225, subdivision 7d, paragraph (b). 171.22 Subd. 2. [CAPITAL EXPENDITURE EQUIPMENT REVENUE.] Capital 171.23 expenditure equipment aid shall be paid toan outcome-baseda 171.24 charter school according to section 124.245, subdivision 6, as 171.25 though it were a school district. 171.26 Capital expenditure equipment aid shall equal capital 171.27 expenditure equipment revenue. Notwithstanding section 124.244, 171.28 subdivision 4,an outcome-baseda charter school may use the 171.29 revenue for any purpose related to the school. 171.30 Subd. 3. [SPECIAL EDUCATION AND LIMITED ENGLISH 171.31 PROFICIENCY AID.] Special education aid shall be paid toan171.32outcome-baseda charter school according to section 124.32 as 171.33 though it were a school district. The charter school may charge 171.34 tuition to the district of residence as provided in section 171.35 120.17, subdivision 4. Limited English proficiency programs aid 171.36 shall be paid to a charter school according to section 124.273 172.1 as though it were a school district. Theoutcome-basedcharter 172.2 school shall allocate its special education levy equalization 172.3 revenue to the resident districts of the pupils attending 172.4 theoutcome-basedcharter school as though it were a 172.5 cooperative, as provided in section 124.321, subdivision 2, 172.6 paragraph (a),clauseclauses (1) and (3). The districts of 172.7 residence shall levy as though they were participating in a 172.8 cooperative, as provided in section 124.321, subdivision 3. 172.9 Subd. 4. [OTHER AID, GRANTS, REVENUE.] (a)An172.10outcome-basedA charter school is eligible to receive other 172.11 aids, grants, and revenue according to chapters 120 to 129, as 172.12 though it were a school district except that, notwithstanding 172.13 section 124.195, subdivision 3, the payments shall be of an 172.14 equal amount on each of the 23 payment dates unlessan172.15outcome-baseda charter school is in its first year of operation 172.16 in which case it shall receive on its first payment date 15 172.17 percent of its cumulative amount guaranteed for the year and 22 172.18 payments of an equal amount thereafter the sum of which shall be 172.19 85 percent of the cumulative amount guaranteed. However, it may 172.20 not receive aid, a grant, or revenue if a levy is required to 172.21 obtain the money, except as otherwise provided in this section. 172.22 Federal aid received by the state must be paid to the school, if 172.23 it qualifies for the aid as though it were a school district. 172.24 (b) Any revenue received from any source, other than 172.25 revenue that is specifically allowed for operational, 172.26 maintenance, capital facilities revenue under paragraph (c), and 172.27 capital expenditure equipment costs under this section, may be 172.28 used only for the planning and operational start-up costs ofan172.29outcome-baseda charter school. Any unexpended revenue from any 172.30 source under this paragraph must be returned to that revenue 172.31 source or conveyed to the sponsoring school district, at the 172.32 discretion of the revenue source. 172.33 (c)An outcome-basedA charter school may receive money 172.34 from any source for capital facilities needs. Any unexpended 172.35 capital facilities revenue must be reserved and shall be 172.36 expended only for future capital facilities purposes. 173.1 Subd. 5. [USE OF STATE MONEY.] Money received from the 173.2 state may not be used to purchase land or buildings. The school 173.3 may own land and buildings if obtained through nonstate sources. 173.4 Sec. 5. Minnesota Statutes 1994, section 124.916, 173.5 subdivision 2, is amended to read: 173.6 Subd. 2. [RETIRED EMPLOYEE HEALTH BENEFITS.] For taxes 173.7 payable in1994 and 19951996, 1997, 1998, and 1999 only, a 173.8 school district may levy an amount up to the amount the district 173.9 is required by the collective bargaining agreement in effect on 173.10 March 30, 1992, to pay for health insurance or unreimbursed 173.11 medical expenses for licensed and nonlicensed employees who have 173.12 terminated services in the employing district and withdrawn from 173.13 active teaching service or other active service, as applicable, 173.14 before July 1, 1992. The total amount of the levy each year may 173.15 not exceed $300,000. 173.16 Notwithstanding section 121.904, 50 percent of the proceeds 173.17 of this levy shall be recognized in the fiscal year in which it 173.18 is certified. 173.19 Sec. 6. Minnesota Statutes 1994, section 125.12, 173.20 subdivision 3, is amended to read: 173.21 Subd. 3. [PROBATIONARY PERIOD.] The first three 173.22 consecutive years of a teacher's first teaching experience in 173.23 Minnesota in a single school district shall be deemed to be a 173.24 probationary period of employment, and after completion thereof, 173.25 the probationary period in each school district in which the 173.26 teacher is thereafter employed shall be one year. Theschool173.27site management team, or theschool boardif there is no school173.28site management team,shall adopt a plan for written evaluation 173.29 of teachers during the probationary periodaccording to173.30subdivision 3a or 3b. Evaluationby the peer review committee173.31charged with evaluating probationary teachers under subdivision173.323ashall occur at least three times each year for a teacher 173.33 performing services on 120 or more school days, at least two 173.34 times each year for a teacher performing services on 60 to 119 173.35 school days, and at least one time each year for a teacher 173.36 performing services on fewer than 60 school days. Days devoted 174.1 to parent-teacher conferences, teachers' workshops, and other 174.2 staff development opportunities and days on which a teacher is 174.3 absent from school shall not be included in determining the 174.4 number of school days on which a teacher performs services. 174.5 During the probationary period any annual contract with any 174.6 teacher may or may not be renewed as the school board, after174.7consulting with the peer review committee charged with174.8evaluating probationary teachers under subdivision 3a,shall see 174.9 fit; provided, however, that the school board shall give any 174.10 such teacher whose contract it declines to renew for the 174.11 following school year written notice to that effect before June 174.12 1. If the teacher requests reasons for any nonrenewal of a 174.13 teaching contract, the school board shall give the teacher its 174.14 reason in writing, including a statement that appropriate 174.15 supervision was furnished describing the nature and the extent 174.16 of such supervision furnished the teacher during the employment 174.17 by the board, within ten days after receiving such request. The 174.18 school board may, after a hearing held upon due notice, 174.19 discharge a teacher during the probationary period for cause, 174.20 effective immediately, under section 123.35, subdivision 5. 174.21 Sec. 7. Minnesota Statutes 1994, section 125.623, 174.22 subdivision 2, is amended to read: 174.23 Subd. 2. [GRANTS.] The commissioner of education in 174.24 consultation with themulticultural advisory committee174.25established in section 126.82desegregation/integration advisory 174.26 board established in section 121.1601, subdivision 3, shall 174.27 award grants for professional development programs to recruit 174.28 and educate people of color in the field of education, including 174.29 early childhood and parent education. Grant applicants must be 174.30 a school district with a growing minority population working in 174.31 collaboration with a state institution of higher education with 174.32 an approved teacher licensure program or an approved early 174.33 childhood or parent education licensure program. 174.34 Sec. 8. Minnesota Statutes 1994, section 126.22, 174.35 subdivision 3, is amended to read: 174.36 Subd. 3. [ELIGIBLE PROGRAMS.] (a) A pupil who is eligible 175.1 according to subdivision 2 may enroll inany program approved by175.2the state board of education under Minnesota Rules, part175.33500.3500, orarea learning centers under sections 124C.45 to 175.4 124C.48, or according to section 121.11, subdivision 12. 175.5 (b) A pupil who is eligible according to subdivision 2 and 175.6 who is between the ages of 16 and 21 may enroll in 175.7 post-secondary courses under section 123.3514. 175.8 (c) A pupil who is eligible under subdivision 2, may enroll 175.9 in any public elementary or secondary education program. 175.10 However, a person who is eligible according to subdivision 2, 175.11 clause (b), may enroll only if the school board has adopted a 175.12 resolution approving the enrollment. 175.13 (d) A pupil who is eligible under subdivision 2, may enroll 175.14 part time, if 16 years of age or older, or full time in any 175.15 nonprofit, nonpublic, nonsectarian school that has contracted 175.16 with the serving school district to provide educational services. 175.17 (e) A pupil who is between the ages of 16 and 21 may enroll 175.18 in any adult basic education programs approved under section 175.19 124.26 and operated under the community education program 175.20 contained in section 121.88. 175.21 Sec. 9. Minnesota Statutes 1994, section 126.70, is 175.22 amended to read: 175.23 126.70 [STAFF DEVELOPMENT PROGRAM.] 175.24 Subdivision 1. [STAFF DEVELOPMENT COMMITTEE.] A school 175.25 board shall use the revenue authorized in section 124A.29 for 175.26 in-service education for programs under section 126.77, 175.27 subdivision 2, or for staff development plans under this 175.28 section. The board must establish a staff development committee 175.29 to develop the plan,advise aassist site decision-makingteam175.30aboutteams in developing a site plan consistent with the goals 175.31 of the plan, and evaluate staff development efforts at the site 175.32 level. A majority of the advisory committee must be teachers 175.33 representing various grade levels, subject areas, and special 175.34 education. The advisory committee must also include nonteaching 175.35 staff, parents, and administrators. Districts shall report 175.36 staff development results and expenditures to the commissioner 176.1 in the form and manner determined by the commissioner. The 176.2 expenditure report shall include expenditures by the school 176.3 board for district level activities and expenditures made by the 176.4 staff. The commissioner shall report the staff development 176.5 expenditure data to the education committees of the legislature 176.6 by February 15 each year. 176.7 Subd. 2. [CONTENTS OF THE PLAN.] The plan must include 176.8educationthe staff development outcomes under subdivision 2a, 176.9 the means to achieve the outcomes, and procedures for evaluating 176.10 progress at each school site toward meeting education outcomes. 176.11 Subd. 2a. [STAFF DEVELOPMENT OUTCOMES.](a)The staff 176.12 development committee shall adopt a staff development plan for 176.13 improving student achievement of education outcomes. The plan 176.14 must be consistent with education outcomes that the school board 176.15 determines.The plan shall include activities that enhance176.16staff skills for achieving the following outcomesThe plan shall 176.17 include on-going staff development activities that contribute 176.18 toward continuous improvement in achievement of the following 176.19 goals: 176.20 (1)foster readiness for learning for all pupilsimprove 176.21 student achievement of state and local education standards in 176.22 all areas of the curriculum; 176.23 (2)increase pupils' educational progress by using176.24appropriate outcomes and personal learning goals and by176.25encouraging pupils and their parents to assume responsibility176.26for their educationeffectively meet the needs of a diverse 176.27 student population, including at-risk children, children with 176.28 disabilities, and gifted children, within the regular classroom 176.29 and other settings; 176.30 (3)meet pupils' individual needs by using alternative176.31instructional opportunities, accommodations, modifications,176.32after-school child care programs, and family and community176.33resourcesprovide an inclusive curriculum for a racially, 176.34 ethnically, and culturally diverse student population that is 176.35 consistent with the state education diversity rule and the 176.36 district's education diversity plan; 177.1 (4)effectively meet the needs of children with177.2disabilities within the regular classroom and other settings by177.3improving the knowledge of school personnel about the legal and177.4programmatic requirements affecting students with disabilities,177.5and by improving staff ability to collaborate, consult with one177.6another, and resolve conflicts; andimprove staff ability to 177.7 collaborate and consult with one another and to resolve 177.8 conflicts; 177.9 (5)provide equal educational opportunities for all177.10students that are consistent with the school177.11desegregation/integration and inclusive education policies177.12adopted by school districts and approved by the state.177.13(b) The staff development committee is strongly encouraged177.14to include in its plan activities for achieving the following177.15outcomes:177.16(1) facilitate organizational changes by enabling a177.17site-based team composed of pupils, parents, school personnel,177.18representatives of children with disabilities, and community177.19members who generally reflect the racial composition of the177.20school to address the pupils' needs;177.21(2) evaluate the effectiveness of education policies,177.22processes, and products through appropriate evaluation177.23procedures that include multiple criteria and indicators;177.24(3) provide effective mentorship oversight and peer review177.25of probationary, continuing contract, and nonprobationary177.26teachers;177.27(4) assist elementary and secondary students in learning to177.28resolve conflicts in effective, nonviolent ways;177.29(5) effectively teach and model violence prevention policy177.30and curricula that address issues of sexual, racial, and177.31religious harassment; and177.32(6) provide challenging instructional activities and177.33experiences, including advanced placement and international177.34baccalaureate programs, that recognize and cultivate students'177.35advanced abilities and talents.effectively teach and model 177.36 violence prevention policy and curriculum that address issues of 178.1 harassment and teach nonviolent alternatives for conflict 178.2 resolution; and 178.3 (6) provide teachers and other members of site-based 178.4 management teams with appropriate management and financial 178.5 management skills. 178.6 Sec. 10. Minnesota Statutes 1994, section 128B.08, is 178.7 amended to read: 178.8 128B.08 [REPORTS TO LEGISLATURE.] 178.9 BeforeDecember 1January 15 of each odd-numbered year, the 178.10 council must submit a report to the legislature on the school 178.11 established by this chapter. The report must document the 178.12 success or failure of the school. 178.13 Sec. 11. Minnesota Statutes 1994, section 128B.10, 178.14 subdivision 1, is amended to read: 178.15 Subdivision 1. [EXTENSION.] This chapter is repealed July 178.16 1,19951997. 178.17 Sec. 12. [145.9255] [MN ENABL, MINNESOTA EDUCATION NOW AND 178.18 BABIES LATER.] 178.19 Subdivision 1. [ESTABLISHMENT.] The commissioner of the 178.20 department of education, in consultation and cooperation with a 178.21 representative from Minnesota planning and the commissioner of 178.22 the department of health, shall continue the Minnesota education 178.23 now and babies later (MN ENABL) program, targeted to adolescents 178.24 ages 12 to 14, with the goal of reducing the incidence of 178.25 adolescent pregnancy in the state. The program must provide a 178.26 multifaceted, primary prevention, community health promotion 178.27 approach to educating and supporting adolescents in the decision 178.28 to postpone sexual involvement modeled after the ENABL program 178.29 in California. 178.30 Subd. 1a. [DEFINITION.] "Community-based local contractor" 178.31 or "contractor" includes boards of health under section 145A.02, 178.32 nonprofit organizations, or school districts. The 178.33 community-based local contractors may provide the education 178.34 component of MN ENABL in a variety of settings including, but 178.35 not limited to, schools, religious establishments, local 178.36 community centers, and youth camps. 179.1 Subd. 2. [DUTIES OF THE COMMISSIONER OF THE DEPARTMENT OF 179.2 EDUCATION.] The commissioner shall: 179.3 (1) manage the grant process, including awarding and 179.4 monitoring grants to community-based local contractors, and may 179.5 contract with community-based local contractors that can 179.6 demonstrate at least a 50 percent local match and agree to 179.7 participate in the four MN ENABL program components under 179.8 subdivision 3; 179.9 (2) provide technical assistance to the community-based 179.10 local contractors as necessary under subdivision 3; 179.11 (3) develop and implement the evaluation component, and 179.12 provide centralized coordination at the state level of the 179.13 evaluation process; and 179.14 (4) explore and pursue the federal funding possibilities 179.15 and specifically request funding from the United States 179.16 Department of Health and Human Services to supplement the 179.17 development and implementation of the program. 179.18 Subd. 3. [PROGRAM COMPONENTS.] The program must include 179.19 the following four major components. 179.20 (a) A community organization component in which the 179.21 community-based local contractors shall include: 179.22 (1) use of a postponing sexual involvement education 179.23 curriculum targeted to boys and girls ages 12 to 14 in schools 179.24 and/or community settings; 179.25 (2) planning and implementation of community organization 179.26 strategies to convey and reinforce the MN ENABL message of 179.27 postponing sexual involvement, including activities promoting 179.28 awareness and involvement of parents and other primary 179.29 caregivers/significant adults, schools, and community; and 179.30 (3) development of local media linkages. 179.31 (b) A statewide, comprehensive media and public relations 179.32 campaign to promote changes in sexual attitudes and behaviors, 179.33 and reinforce the message of postponing adolescent sexual 179.34 involvement. 179.35 In developing the campaign, the commissioner of education 179.36 shall coordinate and consult with representatives from ethnic 180.1 and local communities to maximize effectiveness of the social 180.2 marketing approach to health promotion among the culturally 180.3 diverse population of the state. The development and 180.4 implementation of the campaign is subject to input and approval 180.5 by the commissioner of health. 180.6 The local community-based contractors shall collaborate and 180.7 coordinate efforts with other community organizations and 180.8 interested persons to provide school and community-wide 180.9 promotional activities that support and reinforce the message of 180.10 the MN ENABL curriculum. 180.11 (c) An evaluation component which evaluates the process and 180.12 the impact of the program. 180.13 The "process evaluation" must provide information to the 180.14 state on the breadth and scope of the program. The evaluation 180.15 must identify program areas that might need modification and 180.16 identify local MN ENABL contractor strategies and procedures 180.17 which are particularly effective. Contractors must keep 180.18 complete records on the demographics of clients served, number 180.19 of direct education sessions delivered, and other appropriate 180.20 statistics, and must document exactly how the program was 180.21 implemented. The commissioner may select contractor sites for 180.22 more in-depth case studies. 180.23 The "impact evaluation" must provide information to the 180.24 state on the impact of the different components of the MN ENABL 180.25 program and an assessment of the impact of the program on 180.26 adolescent's related sexual knowledge, attitudes, and 180.27 risk-taking behavior. 180.28 (d) A training component to provide comprehensive training 180.29 to the local MN ENABL community-based local contractors and the 180.30 direct education program staff. 180.31 The local community-based contractors may use adolescent 180.32 leaders slightly older than the adolescents in the program to 180.33 impart the message to postpone sexual involvement provided: 180.34 (1) the contractor follows a protocol for adult 180.35 mentors/leaders and older adolescent leaders established by the 180.36 commissioner of education; 181.1 (2) the older adolescent leader is accompanied by an adult 181.2 leader; and 181.3 (3) the contractor uses the curriculum as directed and 181.4 required by the commissioner of the department of health to 181.5 implement this part of the program. The commissioner of health 181.6 shall provide technical assistance to community-based local 181.7 contractors. 181.8 Sec. 13. Laws 1965, chapter 705, section 1, subdivision 3, 181.9 is amended to read: 181.10 Subd. 3. [CONTRACTS FOR SERVICES.] The converted district 181.11shallmay contract with the city of Saint Paul forsuch181.12 facilitiesas arefurnished by the civil service bureau, and, 181.13 unless the board and city governing body each adopt a resolution 181.14 declaring that a particular function would bemostmore 181.15 efficiently and effectively handled separately, the board shall 181.16 contract on a pro rata cost basis with the city forsuch181.17 facilities and servicesas areprovided by the purchasing 181.18 department, comptroller, legal department, and election and 181.19 other services supplied by the city, provided, however, that the 181.20 board may contract for other legal services when the interests 181.21 of the district and the city are in conflict in any legal 181.22 matter, and provided further that the board may contract for 181.23 architectural services for the planning and construction of new 181.24 school buildings when funds have been made available for their 181.25 constructionof such school buildings. 181.26 Sec. 14. Laws 1965, chapter 705, section 1, subdivision 4, 181.27 is amended to read: 181.28 Subd. 4. As of July 1, 1965, the organization, operation, 181.29 maintenance and conduct of the affairs of the converted district 181.30 shall be governed by general laws relating to independent 181.31 districts, except as otherwise provided in Extra Session Laws 181.32 1959, Chapter 71, as amended, and all special laws and charter 181.33 provisions relating only to the converted district are 181.34 repealed. Where an existing pension law is applicable to 181.35 employees of the special district such law shall continue to be 181.36 applicable in the same manner and to the same extent to 182.1 employees of the converted district. General laws applicable to 182.2 independent school districts wholly or partly within cities of 182.3 the first class shall not be applicable to the converted 182.4 district. The provision of the statutes applicable only to 182.5 teachers retirement fund associations in cities of the first 182.6 class, limiting the amount of annuity to be paid from public 182.7 funds, limiting the taxes to be levied to carry out the plan of 182.8 such associations, and limiting the amount of annuities to be 182.9 paid to beneficiaries, all as contained in Minnesota Statutes, 182.10 Section 135.24, shall not be applicable to such converted 182.11 district, but the statutes applicable to such special district 182.12 prior to the conversion shall continue to be applicable and the 182.13 pension plan in operation prior to the conversion shall continue 182.14 in operation until changed in accordance with law, and the 182.15 teacher tenure law applicable to the special district shall 182.16 continue to apply to the converted district in the same manner 182.17 and to the same extent to teachers in the converted district; 182.18 provided further, where existing civil service provisions of any 182.19 law or charter are applicable to special district employees, 182.20 such provisionshallmay continue to be applicable in the same 182.21 manner and to the same extent to employees of the converted 182.22 district, unless the board and city governing body each adopt a 182.23 resolution declaring that civil service bureau (city human 182.24 resources department) functions would be more efficiently and 182.25 effectively administered separately in each jurisdiction. 182.26 Notwithstanding any contrary provision of Extra Session Laws 182.27 1959, Chapter 71, as amended, if there was in the special 182.28 district a teachers retirement fund association operating and 182.29 existing under the provisions of Laws 1909, Chapter 343, and all 182.30 acts amendatory thereof, then such teachers retirement fund 182.31 association shall continue to exist and operate in the converted 182.32 district under and to be subject to the provisions of Laws 1909, 182.33 Chapter 343, and all acts amendatory thereof, to the same extent 182.34 and in the same manner as before the conversion, and, without 182.35 limiting the generality of the foregoing, such teachers 182.36 retirement fund association shall continue, after the conversion 183.1 as before the conversion, to certify to the same authorities the 183.2 amount necessary to raise by taxation in order to carry out its 183.3 retirement plan, and it shall continue, after the conversion as 183.4 before the conversion, to be the duty of said authorities to 183.5 include in the tax levy for the ensuing year a tax in addition 183.6 to all other taxes sufficient to produce so much of the sums so 183.7 certified as said authorities shall approve, and such teachers 183.8 retirement fund association shall not be subject after the 183.9 conversion to any limitation on payments to any beneficiary from 183.10 public funds or on taxes to be levied to carry out the plan of 183.11 such association to which it was not subject before the 183.12 conversion. 183.13 Sec. 15. Laws 1993, chapter 224, article 12, section 39, 183.14 is amended to read: 183.15 Sec. 39. [REPEALER.] 183.16 (a) Minnesota Rules, parts 3500.0500; 3500.0600, subparts 1 183.17 and 2; 3500.0605; 3500.0800; 3500.1090; 3500.1800; 3500.2950; 183.18 3500.3100, subparts 1 to 3; 3500.3500; 3500.3600; 3500.4400; 183.19 3510.2200; 3510.2300; 3510.2400; 3510.2500; 3510.2600; 183.20 3510.6200; 3520.0200; 3520.0300; 3520.0600; 3520.1000; 183.21 3520.1200; 3520.1300; 3520.1800; 3520.2700; 3520.3802; 183.22 3520.3900; 3520.4500; 3520.4620; 3520.4630; 3520.4640; 183.23 3520.4680; 3520.4750; 3520.4761; 3520.4811; 3520.4831; 183.24 3520.4910; 3520.5330; 3520.5340; 3520.5370; 3520.5461; 183.25 3525.2850; 3530.0300; 3530.0600; 3530.0700; 3530.0800; 183.26 3530.1100; 3530.1300; 3530.1400; 3530.1600; 3530.1700; 183.27 3530.1800; 3530.1900; 3530.2000; 3530.2100; 3530.2800; 183.28 3530.2900; 3530.3100, subparts 2 to 4; 3530.3200, subparts 1 to 183.29 5; 3530.3400, subparts 1, 2, and 4 to 7; 3530.3500; 3530.3600; 183.30 3530.3900; 3530.4000; 3530.4100; 3530.5500; 3530.5700; 183.31 3530.6100; 3535.0800; 3535.1000; 3535.1400; 3535.1600; 183.32 3535.1800; 3535.1900; 3535.2100; 3535.2200; 3535.2600; 183.33 3535.2900; 3535.3100; 3535.3500; 3535.9930; 3535.9940; 183.34 3535.9950; 3540.0600; 3540.0700; 3540.0800; 3540.0900; 183.35 3540.1000; 3540.1100; 3540.1200; 3540.1300; 3540.1700; 183.36 3540.1800; 3540.1900; 3540.2000; 3540.2100; 3540.2200; 184.1 3540.2300; 3540.2400; 3540.2800; 3540.2900; 3540.3000; 184.2 3540.3100; 3540.3200; 3540.3300; 3540.3400; 3545.1000; 184.3 3545.1100; 3545.1200; 3545.2300; 3545.2700; 3545.3000; 184.4 3545.3002; 3545.3004; 3545.3005; 3545.3014; 3545.3022; 184.5 3545.3024; 8700.4200; 8700.6410; 8700.6800; 8700.7100; 184.6 8700.9000; 8700.9010; 8700.9020; and 8700.9030, are repealed. 184.7 (b) Minnesota Rules, parts 3520.1600; 3520.2400; 3520.2500; 184.8 3520.2600; 3520.2800; 3520.2900; 3520.3000; 3520.3100; 184.9 3520.3200; 3520.3400; 3520.3500; 3520.3680; 3520.3701; 184.10 3520.3801; 3520.4001; 3520.4100; 3520.4201; 3520.4301; 184.11 3520.4400; 3520.4510; 3520.4531; 3520.4540; 3520.4550; 184.12 3520.4560; 3520.4570; 3520.4600; 3520.4610; 3520.4650; 184.13 3520.4670; 3520.4701; 3520.4711; 3520.4720; 3520.4731; 184.14 3520.4741; 3520.4801; 3520.4840; 3520.4850; 3520.4900; 184.15 3520.4930; 3520.4980; 3520.5000; 3520.5010; 3520.5111; 184.16 3520.5120; 3520.5141; 3520.5151; 3520.5160; 3520.5171; 184.17 3520.5180; 3520.5190; 3520.5200; 3520.5220; 3520.5230; 184.18 3520.5300; 3520.5310; 3520.5361; 3520.5380; 3520.5401; 184.19 3520.5450; 3520.5471; 3520.5481; 3520.5490; 3520.5500; 184.20 3520.5510; 3520.5520; 3520.5531; 3520.5551; 3520.5560; 184.21 3520.5570; 3520.5580; 3520.5600; 3520.5611; 3520.5700; 184.22 3520.5710; 3520.5900; 3520.5910; 3520.5920; 3530.6500; 184.23 3530.6600; 3530.6700; 3530.6800; 3530.6900; 3530.7000; 184.24 3530.7100; 3530.7200; 3530.7300; 3530.7400; 3530.7500; 184.25 3530.7600; 3530.7700; and 3530.7800, are repealed. 184.26 (c) Minnesota Rules, parts 3500.1400; 3500.3700;3510.0100;184.273510.0200;3510.0300;3510.0400; 3510.0500; 3510.0600;184.283510.0800; 3510.1100; 3510.1200; 3510.1300; 3510.1400;184.293510.1500; 3510.1600; 3510.2800; 3510.2900; 3510.3000;184.303510.3200; 3510.3400; 3510.3500; 3510.3600; 3510.3700;184.313510.3800; 3510.7200; 3510.7300; 3510.7400; 3510.7500;184.323510.7600; 3510.7700; 3510.7900; 3510.8000;3510.8100; 184.33 3510.8200; 3510.8300; 3510.8400;3510.8500; 3510.8600;184.343510.8700; 3510.9000; 3510.9100;chapters 3515,3517.0100;184.353517.0120;3517.3150; 3517.3170; 3517.3420; 3517.3450; 184.36 3517.3500; 3517.3650;3517.4000; 3517.4100; 3517.4200;185.1 3517.8500; 3517.8600;, and 3560, are repealed. 185.2 (d) Minnesota Rules, parts 3500.0710; 3500.1060; 3500.1075; 185.3 3500.1100; 3500.1150; 3500.1200; 3500.1500; 3500.1600; 185.4 3500.1900; 3500.2000; 3500.2020; 3500.2100; 3500.2900; 185.5 3500.5010; 3500.5020; 3500.5030; 3500.5040; 3500.5050; 185.6 3500.5060; 3500.5070; 3505.2700; 3505.2800; 3505.2900; 185.7 3505.3000; 3505.3100; 3505.3200; 3505.3300; 3505.3400; 185.8 3505.3500; 3505.3600; 3505.3700; 3505.3800; 3505.3900; 185.9 3505.4000; 3505.4100; 3505.4200; 3505.4400; 3505.4500; 185.10 3505.4600; 3505.4700; 3505.5100; 8700.2900; 8700.3000; 185.11 8700.3110; 8700.3120; 8700.3200; 8700.3300; 8700.3400; 185.12 8700.3500; 8700.3510; 8700.3600; 8700.3700; 8700.3810; 185.13 8700.3900; 8700.4000; 8700.4100; 8700.4300; 8700.4400; 185.14 8700.4500; 8700.4600; 8700.4710; 8700.4800; 8700.4901; 185.15 8700.4902; 8700.5100; 8700.5200; 8700.5300; 8700.5310; 185.16 8700.5311; 8700.5500; 8700.5501; 8700.5502; 8700.5503; 185.17 8700.5504; 8700.5505; 8700.5506; 8700.5507; 8700.5508; 185.18 8700.5509; 8700.5510; 8700.5511; 8700.5512; 8700.5800; 185.19 8700.6310; 8700.6900; 8700.7010; 8700.7700; 8700.7710; 185.20 8700.8000; 8700.8010; 8700.8020; 8700.8030; 8700.8040; 185.21 8700.8050; 8700.8060; 8700.8070; 8700.8080; 8700.8090; 185.22 8700.8110; 8700.8120; 8700.8130; 8700.8140; 8700.8150; 185.23 8700.8160; 8700.8170; 8700.8180; 8700.8190; 8750.0200; 185.24 8750.0220; 8750.0240; 8750.0260; 8750.0300; 8750.0320; 185.25 8750.0330; 8750.0350; 8750.0370; 8750.0390; 8750.0410; 185.26 8750.0430; 8750.0460; 8750.0500; 8750.0520; 8750.0600; 185.27 8750.0620; 8750.0700; 8750.0720; 8750.0740; 8750.0760; 185.28 8750.0780; 8750.0800; 8750.0820; 8750.0840; 8750.0860; 185.29 8750.0880; 8750.0890; 8750.0900; 8750.0920; 8750.1000; 185.30 8750.1100; 8750.1120; 8750.1200; 8750.1220; 8750.1240; 185.31 8750.1260; 8750.1280; 8750.1300; 8750.1320; 8750.1340; 185.32 8750.1360; 8750.1380; 8750.1400; 8750.1420; 8750.1440; 185.33 8750.1500; 8750.1520; 8750.1540; 8750.1560; 8750.1580; 185.34 8750.1600; 8750.1700; 8750.1800; 8750.1820; 8750.1840; 185.35 8750.1860; 8750.1880; 8750.1900; 8750.1920; 8750.1930; 185.36 8750.1940; 8750.1960; 8750.1980; 8750.2000; 8750.2020; 186.1 8750.2040; 8750.2060; 8750.2080; 8750.2100; 8750.2120; 186.2 8750.2140; 8750.4000; 8750.4100; 8750.4200; 8750.9000; 186.3 8750.9100; 8750.9200; 8750.9300; 8750.9400; 8750.9500; 186.4 8750.9600; and 8750.9700, are repealed. 186.5 (e) Minnesota Rules, parts 3510.0100; 3510.0200; 3510.0400; 186.6 3510.0500; 3510.0600; 3510.0800; 3510.1100; 3510.1200; 186.7 3510.1300; 3510.1400; 3510.1500; 3510.1600; 3510.2800; 186.8 3510.2900; 3510.3000; 3510.3200; 3510.3400; 3510.3500; 186.9 3510.3600; 3510.3700; 3510.3800; 3510.7200; 3510.7300; 186.10 3510.7400; 3510.7500; 3510.7600; 3510.7700; 3510.7900; 186.11 3510.8000; 3510.8500; 3510.8600; 3510.8700; 3510.9000; 186.12 3510.9100; 3517.0100; and 3517.0120, are repealed. 186.13 Sec. 16. Laws 1993, chapter 224, article 12, section 41, 186.14 is amended to read: 186.15 Sec. 41. [EFFECTIVE DATE.] 186.16 Sections 22 to 25 are effective July 1, 1995. 186.17 Section 32, paragraph (b), is effective July 1, 1995. 186.18 Section 32, paragraph (c), is effective August 1, 1996. 186.19 Section 39, paragraph (b), is effective August 1, 1994. 186.20 Section 39, paragraph (c), is effective July 1, 1995. Section 186.21 39, paragraph (d), is effective August 1, 1996. Section 39, 186.22 paragraph (e), is effective July 1, 1996. 186.23 Sec. 17. Laws 1994, chapter 647, article 7, section 15, is 186.24 amended to read: 186.25 Sec. 15. [TEACHER PREPARATION CURRICULUM.] 186.26 (a) Consistent with Laws 1993, chapter 224, article 12, 186.27 section 34, the state board of teaching, with the assistance of 186.28organizations representing diverse cultures,the state American 186.29 Indian education committee, shalldecide whether or not to186.30 include in the curriculum for preparing all beginning elementary 186.31 and social studies teachersa study of anthropology that186.32encompasses a study of the indigenous people of the midwest, and186.33a study ofthe historyof the indigenous people that encompasses186.34a study of the Minnesota area in precolonial times through the186.35twentieth century, government, and culture of Minnesota based 186.36 American Indian tribes. 187.1 (b) Consistent with Laws 1993, chapter 224, article 12, 187.2 section 34, the state board of teaching shall ensure that the 187.3 human relations curriculum of all teacher preparation programs 187.4 includes components of American Indian language, history, 187.5 government, and culture. 187.6 Sec. 18. [RETIREMENT INCENTIVE.] 187.7 (a) For the 1995-1996 and 1996-1997 school years only, a 187.8 school board may offer early retirement incentives to licensed 187.9 and nonlicensed staff of the school district who are under the 187.10 age of 65. The early retirement incentive that the board may 187.11 offer is the employer payment of the premiums for continued 187.12 health insurance coverage under paragraph (b). This incentive 187.13 may only be offered to employees who agree to terminate active 187.14 employment with the school district. The board must determine 187.15 the staff to whom the incentive is offered. Unilateral 187.16 implementation of this section by a school board is not an 187.17 unfair labor practice under Minnesota Statutes, chapter 179A. 187.18 (b) The board may offer a former employee who is at least 187.19 age 50 continued employer-paid individual or dependent health 187.20 insurance coverage. To be eligible for employer-paid health 187.21 insurance under this section, the former employee must agree not 187.22 to return to work in any capacity for the district that will 187.23 provide the insurance coverage or any other district, except as 187.24 a substitute teacher. Coverage may not extend beyond the age of 187.25 65 or the end of the first month in which the employee is 187.26 eligible for employer-paid health insurance coverage from a new 187.27 employer. For purposes of this section, "employer-paid health 187.28 insurance coverage" means medical, hospitalization, or health 187.29 insurance coverage provided through an insurance company that is 187.30 licensed to do business in the state. The amount of the payment 187.31 under this section shall be as agreed between the employee and 187.32 the school board. 187.33 Sec. 19. [PPST TASK FORCE.] 187.34 The board of teaching shall convene a task force to 187.35 consider authentic and qualitative assessments for teachers and 187.36 alternative processes by which the skills examination 188.1 requirement under Minnesota Statutes, section 125.05, 188.2 subdivision 1a, might be met for persons who fail the 188.3 examination. The board shall present their recommendations to 188.4 the education committees of the legislature by February 15, 1996. 188.5 Sec. 20. [SARTELL CAPITAL LOAN.] 188.6 Notwithstanding any law to the contrary, the board of 188.7 independent school district No. 748, Sartell, may, by 188.8 resolution, raise the level of indebtedness of the district by 188.9 an amount equal to the outstanding capital loan on June 30, 188.10 1995. This indebtedness may only be used to refund the loan. 188.11 This does not constitute an impairment of any obligations issued 188.12 by the district prior to the enactment of this act. 188.13 Sec. 21. [UNRECOVERED RAILROAD AID.] 188.14 Unrecovered railroad aid payments pursuant to Laws 1984, 188.15 chapter 502, article 9, section 5, shall be adjusted from the 188.16 school district's aid in fiscal year 1997. If the aid reduction 188.17 required by this section cannot be made to the aid for fiscal 188.18 year 1997, the reduction must be made from aid for subsequent 188.19 fiscal years. 188.20 Sec. 22. [FUND TRANSFERS.] 188.21 Subdivision 1. [CONDITIONS.] (a) A district that transfers 188.22 revenue from a health and safety account or a disabled access 188.23 account may not, at a later date, receive health and safety 188.24 revenue or disabled access revenue for the same project as the 188.25 project for which the transferred revenue was received. The 188.26 transfer request must identify the project that generated the 188.27 balance to be transferred. 188.28 (b) Disabled access revenue that is transferred according 188.29 to this section is included in the district's disabled access 188.30 revenue limit established in Minnesota Statutes, section 124.84, 188.31 subdivision 3. 188.32 (c) Amounts transferred from the health and safety account 188.33 according to this section shall be considered to be approved 188.34 health and safety expenditures for the purpose of computing a 188.35 district's health and safety revenue according to Minnesota 188.36 Statutes, section 124.83, subdivision 3. 189.1 (d) A district that transfers funds from its bus purchase 189.2 account according to this section may not certify a bus purchase 189.3 levy according to Minnesota Statutes, section 124.226, 189.4 subdivision 6, for the next three years following the transfer. 189.5 (e) Fund transfers authorized in this section that involve 189.6 transferring funds in a disabled access account or a health and 189.7 safety account may be made by the district only after the 189.8 commissioner has approved the five-year facilities plan that the 189.9 district is required to prepare according to Minnesota Statutes, 189.10 section 124.243, subdivision 1. 189.11 Subd. 2. [PELICAN RAPIDS.] Notwithstanding Minnesota 189.12 Statutes, sections 121.912 and 121.9121, on June 30, 1995, 189.13 independent school district No. 548, Pelican Rapids, may 189.14 permanently transfer an amount not to exceed $200,000 from its 189.15 general fund to its capital expenditure fund. 189.16 Subd. 3. [PINE RIVER-BACKUS.] Notwithstanding Minnesota 189.17 Statutes, sections 121.912 and 121.9121, on June 30, 1995, 189.18 independent school district No.2174, Pine River-Backus, may 189.19 permanently transfer an amount not to exceed $200,000 from its 189.20 general fund to its capital expenditure fund. 189.21 Subd. 4. [DETROIT LAKES.] Notwithstanding Minnesota 189.22 Statutes, sections 121.912 and 121.9121, on June 30, 1995, 189.23 independent school district No. 22, Detroit Lakes, may 189.24 permanently transfer an amount not to exceed $325,000 from its 189.25 general fund to its capital expenditure fund for acquiring 189.26 computers and related technology needs. 189.27 Subd. 5. [ST. CLOUD.] Notwithstanding Minnesota Statutes, 189.28 sections 121.912 and 121.9121, each year for fiscal years 1996, 189.29 1997, 1998, and 1999, independent school district No. 742, St. 189.30 Cloud, may permanently transfer up to $500,000 of referendum 189.31 revenue received under Minnesota Statutes, section 124A.03, from 189.32 its general fund to its capital expenditure fund for purchasing 189.33 technology for instructional use. 189.34 Subd. 6. [LITTLE FALLS.] Notwithstanding Minnesota 189.35 Statutes, sections 121.912 and 121.9121, each year for fiscal 189.36 years 1996 through 2005, independent school district No. 482, 190.1 Little Falls, may permanently transfer up to $233 per actual 190.2 pupil unit of referendum revenue received under Minnesota 190.3 Statutes, section 124A.03, from its general fund to its capital 190.4 expenditure fund. 190.5 Subd. 7. [MILACA.] Notwithstanding Minnesota Statutes, 190.6 sections 121.912 and 121.9121, each year for fiscal years 1996 190.7 through 2005, independent school district No. 912, Milaca, may 190.8 permanently transfer up to $200 per actual pupil unit of 190.9 referendum revenue received under Minnesota Statutes, section 190.10 124A.03, from its general fund to its capital expenditure fund 190.11 for technology. 190.12 Subd. 8. [RUSH CITY.] Notwithstanding Minnesota Statutes, 190.13 sections 121.912 and 121.9121, on June 30, 1995, independent 190.14 school district No. 139, Rush City, may permanently transfer up 190.15 to $100,000 from its transportation fund to its capital 190.16 expenditure fund. 190.17 Subd. 9. [MENTOR.] Notwithstanding Minnesota Statutes, 190.18 sections 121.912 and 121.9121, on June 30, 1995, independent 190.19 school district No. 604, Mentor, may permanently transfer up to 190.20 $160,000 from the facilities account in its capital expenditure 190.21 fund to its general fund. 190.22 Subd. 10. [GRANADA-HUNTLEY-EAST CHAIN.] Notwithstanding 190.23 Minnesota Statutes, sections 121.912 and 121.9121, on June 30, 190.24 1995, independent school district No. 2536, Granada-Huntley-East 190.25 Chain, may permanently transfer up to $100,000 from the 190.26 facilities and equipment accounts in its capital expenditure 190.27 fund to its general fund. 190.28 Subd. 11. [CHATFIELD.] Notwithstanding Minnesota Statutes, 190.29 sections 121.912 and 121.9121, on June 30, 1995, independent 190.30 school district No. 277, Chatfield, may permanently transfer up 190.31 to $50,000 from the facilities account to the equipment account 190.32 in its capital expenditure fund. 190.33 Subd. 12. [MEDFORD.] Notwithstanding Minnesota Statutes, 190.34 sections 121.912, 121.9121, and 123.36, subdivision 13, 190.35 independent school district No. 763, Medford, may deposit the 190.36 proceeds from a sale of approximately nine acres of land 191.1 adjacent to and east of its football/baseball complex in Medford 191.2 into its general fund. 191.3 Subd. 13. [EAST GRAND FORKS.] Notwithstanding Minnesota 191.4 Statutes, section 124.243, subdivision 6, clause (2), in fiscal 191.5 years 1995 and 1996, independent school district No. 595, East 191.6 Grand Forks, may use up to $1,400,000 in capital expenditure 191.7 facilities revenue to acquire and construct buildings for school 191.8 purposes. 191.9 Subd. 14. [BYRON.] Notwithstanding Minnesota Statutes, 191.10 section 121.912, subdivision 1, if independent school district 191.11 No. 531, Byron, discontinues operation of its bus fleet, or a 191.12 portion of the fleet, and transfers the account balance from the 191.13 transportation fund, the district may spread the required levy 191.14 reduction for capital levies according to Minnesota Statutes, 191.15 sections 124.243, 124.244 and 124.83, over a five-year period 191.16 beginning with 1995 levies payable in 1996. 191.17 Subd. 15. [SWANVILLE.] Notwithstanding Minnesota Statutes, 191.18 sections 121.912 and 121.9121, on June 30, 1995, independent 191.19 school district No. 486, Swanville, may permanently transfer up 191.20 to $100,000 from the bus purchase account to its general fund 191.21 without making a levy reduction. 191.22 Subd. 16. [TRUMAN.] Notwithstanding Minnesota Statutes, 191.23 sections 121.912 and 121.9121, on June 30, 1995, independent 191.24 school district No. 458, Truman, may permanently transfer up to 191.25 $77,000 from the bus purchase account in its transportation fund 191.26 to its general fund without making a levy reduction. 191.27 Subd. 17. [MONTEVIDEO.] Notwithstanding Minnesota 191.28 Statutes, sections 121.912 and 121.9121, on June 30, 1995, 191.29 independent school district No. 129, Montevideo, may permanently 191.30 transfer up to $100,000 from the bus purchase account in its 191.31 transportation fund to its general fund without making a levy 191.32 reduction. 191.33 Subd. 18. [EDINA.] Notwithstanding Minnesota Statutes, 191.34 sections 121.912 and 121.9121, on June 30, 1995, independent 191.35 school district No. 273, Edina, may permanently transfer up to 191.36 $482,432 from the bus purchase account to the undesignated fund 192.1 balance account in its transportation fund. 192.2 Subd. 19. [GARY.] Notwithstanding Minnesota Statutes, 192.3 sections 121.912 and 121.9121, independent school district No. 192.4 523, Gary, may permanently transfer the balance in its bonded 192.5 indebtedness fund and the disabled access account in its capital 192.6 expenditure fund to the general fund of the successor school 192.7 district of independent school district Nos. 526, Twin Valley, 192.8 and 523, Gary. 192.9 Subd. 20. [TWIN VALLEY.] Notwithstanding Minnesota 192.10 Statutes, sections 121.912, 121.9121, 124.243, subdivision 8, 192.11 independent school district No. 526, Twin Valley, may 192.12 permanently transfer the balances in its health and safety 192.13 account and its disabled access account in the capital 192.14 expenditure fund to the general fund of the successor school 192.15 district of independent school district Nos. 526, Twin Valley, 192.16 and 523, Gary. 192.17 Subd. 21. [FISHER.] Notwithstanding Minnesota Statutes, 192.18 section 124.83, subdivision 6, or 124.84, independent school 192.19 district No. 600, Fisher, may use capital expenditure health and 192.20 safety revenue or disabled access revenue, or both, to purchase 192.21 portable classrooms. Any proceeds from the sale of portable 192.22 classrooms purchased with the revenue shall be placed in the 192.23 appropriate account in the capital expenditure fund and used to 192.24 adjust revenue in that account. 192.25 Subd. 22. [NEW PRAGUE.] Notwithstanding Minnesota 192.26 Statutes, section 121.912, on June 30, 1995, independent school 192.27 district No. 721, New Prague, may permanently transfer up to 192.28 $70,000 from its general fund to its capital expenditure fund. 192.29 Subd. 23. [GLENCOE.] Notwithstanding Minnesota Statutes, 192.30 sections 121.912 and 121.9121, on June 30, 1995, independent 192.31 school district No. 422, Glencoe, may permanently transfer up to 192.32 $125,000 from its debt redemption fund to its capital 192.33 expenditure fund without making a levy reduction. 192.34 Subd. 24. [PIPESTONE.] Notwithstanding Minnesota Statutes, 192.35 sections 121.912 and 121.9121, on June 30, 1995, independent 192.36 school district No. 583, Pipestone, may permanently transfer up 193.1 to $190,000 from its debt redemption fund to its capital 193.2 expenditure fund without making a levy reduction. 193.3 Subd. 25. [HERMAN-NORCROSS.] Notwithstanding Minnesota 193.4 Statutes, sections 121.912 and 121.9121, on June 30, 1995, 193.5 independent school district No. 264, Herman-Norcross, may 193.6 permanently transfer up to $73,000 from the bus purchase account 193.7 to the general fund without making a levy reduction. 193.8 Sec. 23. [GOODRIDGE HEALTH AND SAFETY REVENUE USE.] 193.9 Notwithstanding Minnesota Statutes, section 124.83, 193.10 subdivision 6, independent school district No. 561, Goodridge, 193.11 may use capital health and safety revenue to purchase portable 193.12 classrooms. Any proceeds from the subsequent sale of portable 193.13 classrooms purchased with health and safety revenue shall be 193.14 placed in the district's health and safety account in the 193.15 capital fund and shall be used to adjust health and safety 193.16 revenue. 193.17 Sec. 24. [ADULT BASIC EDUCATION LICENSE.] 193.18 Notwithstanding other law or rule, the board of teaching 193.19 must continue to make available an adult basic education license 193.20 for teachers of adult basic education. 193.21 Sec. 25. [APPROPRIATIONS.] 193.22 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums in this 193.23 section are appropriated, unless otherwise indicated, from the 193.24 general fund to the department of education for the fiscal years 193.25 designated. 193.26 Subd. 2. [ABATEMENT AID.] For abatement aid according to 193.27 Minnesota Statutes, section 124.214: 193.28 $24,241,000 ..... 1996 193.29 $ 7,905,000 ..... 1997 193.30 The 1996 appropriation includes $1,135,000 for 1995 and 193.31 $23,106,000 for 1996. 193.32 The 1997 appropriation includes $4,077,000 for 1996 and 193.33 $3,828,000 for 1997. 193.34 Subd. 3. [NONPUBLIC PUPIL AID.] For nonpublic pupil 193.35 education aid according to Minnesota Statutes, sections 123.79 193.36 and 123.931 to 123.947: 194.1 $ 9,686,000 ..... 1996 194.2 $ 9,686,000 ..... 1997 194.3 The 1996 appropriation includes $1,452,000 for 1995 and 194.4 $8,234,000 for 1996. 194.5 The 1997 appropriation includes $1,452,000 for 1996 and 194.6 $8,234,000 for 1997. 194.7 Subd. 4. [SCHOOL LUNCH AND FOOD STORAGE AID.] (a) For 194.8 school lunch aid according to Minnesota Statutes, section 194.9 124.646, and Code of Federal Regulations, title 7, section 194.10 210.17, and for food storage and transportation costs for United 194.11 States Department of Agriculture donated commodities; and for a 194.12 temporary transfer to the commodity processing revolving fund to 194.13 provide cash flow to permit schools and other recipients of 194.14 donated commodities to take advantage of volume processing rates 194.15 and for school milk aid according to Minnesota Statutes, section 194.16 124.648: 194.17 $7,204,000 ..... 1996 194.18 $7,254,000 ..... 1997 194.19 (b) Any unexpended balance remaining from the 194.20 appropriations in this subdivision shall be prorated among 194.21 participating schools based on the number of free, reduced, and 194.22 fully paid federally reimbursable student lunches served during 194.23 that school year. 194.24 (c) If the appropriation amount attributable to either year 194.25 is insufficient, the rate of payment for each fully paid student 194.26 lunch shall be reduced and the aid for that year shall be 194.27 prorated among participating schools so as not to exceed the 194.28 total authorized appropriation for that year. 194.29 (d) Any temporary transfer processed in accordance with 194.30 this subdivision to the commodity processing fund will be 194.31 returned by June 30 in each year so that school lunch aid and 194.32 food storage costs can be fully paid as scheduled. 194.33 (e) Not more than $800,000 of the amount appropriated each 194.34 year may be used for school milk aid. 194.35 Subd. 5. [SUMMER FOOD SERVICE.] For summer food service: 194.36 $15,000 ..... 1996 195.1 $15,000 ..... 1997 195.2 Subd. 6. [SCHOOL BREAKFAST.] To operate the school 195.3 breakfast program: 195.4 $419,000 ..... 1996 195.5 $456,000 ..... 1997 195.6 If the appropriation amount attributable to either year is 195.7 insufficient, the rate of payment for each fully paid student 195.8 breakfast shall be reduced and the aid for that year shall be 195.9 prorated among participating schools so as not to exceed the 195.10 total authorized appropriation for that year. Any unexpected 195.11 balance remaining shall be used to subsidize the payments made 195.12 for school lunch aid per Minnesota Statutes, section 124.646. 195.13 Up to one percent of the program funding can be used by the 195.14 department of education for technical and administrative 195.15 assistance. 195.16 Subd. 7. [PILOT BREAKFAST GRANTS.] For grants for free 195.17 breakfast to elementary school children which began under Laws 195.18 1994, chapter 647, article 8, section 35: 195.19 $104,000 ..... 1996 195.20 $ 88,000 ..... 1997 195.21 $18,000 in 1996 is for evaluation of the program. 195.22 Any balance in the first year does not cancel but is 195.23 available in the second year. 195.24 These grants must be made to independent school districts 195.25 No. 271, Bloomington, for the Oak Grove elementary school; 378, 195.26 Dawson-Boyd, for the elementary school; 402, Hendricks, and 403, 195.27 Ivanhoe, for the elementary school; and special school district 195.28 No. 1, Minneapolis, for the Hans Christian Anderson elementary 195.29 school. 195.30 The department is encouraged to solicit private funds to 195.31 continue the two additional pilot sites added in December 1994. 195.32 Subd. 8. [MAGNET SCHOOL GRANTS.] For magnet school and 195.33 program grants: 195.34 $1,500,000 ..... 1996 195.35 $1,500,000 ..... 1997 195.36 These amounts must be used for planning and developing 196.1 magnet schools and magnet programs. 196.2 Subd. 9. [INTEGRATION PROGRAMS.] For grants according to: 196.3 minority fellowship grants according to Laws 1994, chapter 647, 196.4 article 8, section 29; minority teacher incentives according to 196.5 Minnesota Statutes, section 124.278; teachers of color grants 196.6 according to Minnesota Statutes, section 125.623; and cultural 196.7 exchange grants according to Minnesota Statutes, section 126.43: 196.8 $1,000,000 ..... 1996 196.9 $1,000,000 ..... 1997 196.10 Any balance in the first year does not cancel but is 196.11 available in the second year. 196.12 In awarding teacher of color grants, priority must be given 196.13 to districts that have students who are currently in the process 196.14 of completing their academic program. 196.15 Subd. 10. [TEACHER EDUCATION IMPROVEMENT.] For board of 196.16 teaching responsibilities relating to teacher licensure 196.17 restructuring and implementation of the teaching residency 196.18 program: 196.19 $450,000 ..... 1996 196.20 $450,000 ..... 1997 196.21 The department must transmit this appropriation to the 196.22 board of teaching. Any balance in the first year does not 196.23 cancel but is available in the second year. 196.24 The board of teaching shall use the funds for further 196.25 development of the results-oriented teacher licensure system, 196.26 for pilot site grants and other methods of implementing the 196.27 teacher residency program, and for programs relating to teacher 196.28 mentoring. 196.29 Subd. 11. [MN ENABL; MALE RESPONSIBILITY.] For MN ENABL 196.30 and male responsibility grants: 196.31 $625,000 ..... 1996 196.32 $375,000 ..... 1997 196.33 $250,000 the first year is for the Minnesota education now 196.34 and babies later (MN ENABL) program. $375,000 each year is for 196.35 male responsibility and fathering grants. 196.36 The commissioner of education may enter into cooperative 197.1 agreements with the commissioner of human services to access 197.2 federal money for child support and paternity education programs. 197.3 Subd. 12. [NETT LAKE.] For grants to independent school 197.4 district No. 707, Nett Lake: 197.5 $62,000 ..... 1996 197.6 $62,000 ..... 1997 197.7 $32,000 in 1996 and $32,000 in 1997 are for grants to 197.8 independent school district No. 707, Nett Lake, to pay insurance 197.9 premiums under Minnesota Statutes, section 466.06. 197.10 $30,000 in 1996 and $30,000 in 1997 are for grants to 197.11 independent school district No. 707, Nett Lake, for the payment 197.12 of obligations of the school district for unemployment 197.13 compensation. The appropriation must be paid to the appropriate 197.14 state agency for such purposes in the name of the school 197.15 district. 197.16 Subd. 13. [MODEL SCHOOL FOR CHRONIC TRUANTS.] For the 197.17 model school for truants located in the law enforcement center 197.18 in Mankato: 197.19 $15,000 ..... 1996 197.20 $15,000 ..... 1997 197.21 Subd. 14. [ONE ROOM SCHOOLHOUSE.] For a grant to 197.22 independent school district No. 690, Warroad, to operate the 197.23 Angle Inlet School: 197.24 $30,000 ..... 1996 197.25 $25,000 ..... 1997 197.26 Subd. 15. [PSEO REPLACEMENT AID.] For PSEO replacement aid: 197.27 $104,000 ..... 1996 197.28 $122,000 ..... 1997 197.29 The 1996 appropriation includes $0 for 1995 and $104,000 197.30 for 1996. 197.31 The 1997 appropriation includes $19,000 for 1996 and 197.32 $103,000 for 1997. 197.33 Subd. 16. [AQUILA COMMUNITY TOGETHER PROJECT.] For a grant 197.34 to independent school district No. 283, St. Louis Park, for the 197.35 Aquila community together project: 197.36 $50,000 ..... 1996 198.1 This appropriation must be matched from nonstate sources. 198.2 This appropriation is available until June 30, 1997. 198.3 Subd. 17. [NEW MOON GIRLS PROGRAM.] For a grant to an 198.4 organization for girls to develop a curriculum to educate 198.5 school-aged children in Minnesota on the role of women and 198.6 children around the world: 198.7 $20,000 ..... 1996 198.8 The commissioner of education shall consult with the 198.9 legislative commission on the economic status of women in 198.10 awarding the grant. The curriculum will be used to provide 198.11 instruction on the purpose and experience of the fourth united 198.12 nations conference on women in Beijing, China, and will be 198.13 designed to explore educational opportunities, family 198.14 structures, customs, and health and safety issues for children 198.15 around the world. This appropriation is available until June 198.16 30, 1997. 198.17 Subd. 18. [CAREER TEACHER AID.] For career teacher aid 198.18 according to Minnesota Statutes, section 124.276: 198.19 $125,000 ..... 1996 198.20 $125,000 ..... 1997 198.21 Any balance in the first year does not cancel but is 198.22 available in the second year. 198.23 Notwithstanding Minnesota Statutes, section 124.276, 198.24 subdivision 2, the aid may be used for the increased district 198.25 contribution to the teachers' retirement association and to FICA 198.26 resulting from the portion of the teaching contract that is in 198.27 addition to the standard teaching contract of the district. 198.28 Subd. 19. [EDUCATIONAL PERFORMANCE IMPROVEMENT 198.29 GRANTS.] For additional grants under Laws 1994, chapter 647, 198.30 article 7, section 18: 198.31 $800,000 ..... 1996 198.32 This appropriation is available until June 30, 1997. 198.33 Sec. 26. [REPEALER.] 198.34 Minnesota Statutes 1994, section 124.912, subdivision 8, is 198.35 repealed effective for revenue for fiscal year 1997. 198.36 Minnesota Statutes 1994, sections 125.05, subdivision 7; 199.1 and 125.231, subdivision 2, are repealed. 199.2 Sec. 27. [EFFECTIVE DATES.] 199.3 Sections 18, 20, and 21 are effective the day following 199.4 final enactment. 199.5 Section 13 is effective July 1, 1997, if the governing body 199.6 of the city of Saint Paul and the governing body of independent 199.7 school district No. 625 have approved it and complied with 199.8 Minnesota Statutes, section 645.021, subdivision 3, before 199.9 January 1, 1996. Section 14 does not abrogate language that 199.10 references city of St. Paul civil service rules in bargaining 199.11 unit agreements in existence on March 31, 1995. 199.12 ARTICLE 9 199.13 MISCELLANEOUS 199.14 Section 1. Minnesota Statutes 1994, section 13.43, 199.15 subdivision 2, is amended to read: 199.16 Subd. 2. [PUBLIC DATA.] (a) Except for employees described 199.17 in subdivision 5, the following personnel data on current and 199.18 former employees, volunteers, and independent contractors of a 199.19 state agency, statewide system, or political subdivision and 199.20 members of advisory boards or commissions is public: name; 199.21 actual gross salary; salary range; contract fees; actual gross 199.22 pension; the value and nature of employer paid fringe benefits; 199.23 the basis for and the amount of any added remuneration, 199.24 including expense reimbursement, in addition to salary; job 199.25 title; job description; education and training background; 199.26 previous work experience; date of first and last employment; the 199.27 existence and status of any complaints or charges against the 199.28 employee, whether or not the complaint or charge resulted in a 199.29 disciplinary action; the final disposition of any disciplinary 199.30 action together with the specific reasons for the action and 199.31 data documenting the basis of the action, excluding data that 199.32 would identify confidential sources who are employees of the 199.33 public body; the terms of any agreement settling any dispute 199.34 arising out ofthean employment relationship or of a buyout 199.35 agreement, as defined in section 123.34, subdivision 9a, 199.36 paragraph (a); work location; a work telephone number; badge 200.1 number; honors and awards received; payroll time sheets or other 200.2 comparable data that are only used to account for employee's 200.3 work time for payroll purposes, except to the extent that 200.4 release of time sheet data would reveal the employee's reasons 200.5 for the use of sick or other medical leave or other not public 200.6 data; and city and county of residence. 200.7 (b) For purposes of this subdivision, a final disposition 200.8 occurs when the state agency, statewide system, or political 200.9 subdivision makes its final decision about the disciplinary 200.10 action, regardless of the possibility of any later proceedings 200.11 or court proceedings. In the case of arbitration proceedings 200.12 arising under collective bargaining agreements, a final 200.13 disposition occurs at the conclusion of the arbitration 200.14 proceedings, or upon the failure of the employee to elect 200.15 arbitration within the time provided by the collective 200.16 bargaining agreement. Final disposition includes a resignation 200.17 by an individual when the resignation occurs after the final 200.18 decision of the state agency, statewide system, political 200.19 subdivision, or arbitrator. 200.20 (c) The state agency, statewide system, or political 200.21 subdivision may display a photograph of a current or former 200.22 employee to a prospective witness as part of the state agency's, 200.23 statewide system's, or political subdivision's investigation of 200.24 any complaint or charge against the employee. 200.25 (d) A complainant has access to a statement provided by the 200.26 complainant to a state agency, statewide system, or political 200.27 subdivision in connection with a complaint or charge against an 200.28 employee. 200.29 Sec. 2. Minnesota Statutes 1994, section 120.064, is 200.30 amended to read: 200.31 120.064 [OUTCOME-BASEDRESULTS-ORIENTED CHARTER SCHOOLS.] 200.32 Subdivision 1. [PURPOSES.] (a) The purpose of this section 200.33 is to: 200.34 (1) improve pupil learning; 200.35 (2) increase learning opportunities for pupils; 200.36 (3) encourage the use of different and innovative teaching 201.1 methods; 201.2 (4) require the measurement of learning outcomes and create 201.3 different and innovative forms of measuring outcomes; 201.4 (5) establish new forms of accountability for schools; or 201.5 (6) create new professional opportunities for teachers, 201.6 including the opportunity to be responsible for the learning 201.7 program at the school site. 201.8 (b) This section does not provide a means to keep open a 201.9 school that otherwise would be closed. Applicants in these 201.10 circumstances bear the burden of proving that conversion toan201.11outcome-baseda charter school fulfills a purpose specified in 201.12 this subdivision, independent of the school's closing. 201.13 Subd. 2. [APPLICABILITY.] This section applies only to 201.14outcome-basedcharter schools formed and operated under this 201.15 section. 201.16 Subd. 3. [SPONSOR.] A school board, community college, 201.17 state university, technical college, or the University of 201.18 Minnesota may sponsor one or moreoutcome-basedcharter schools. 201.19A school board may authorize a maximum of five201.20outcome-based schools.201.21 No more than a total of35 outcome-based40 charter schools 201.22 may be authorized not more than three of which may be sponsored 201.23 by public post-secondary institutions. The state board of 201.24 education shall advise potential sponsors when the maximum 201.25 number ofoutcome-basedcharter schools has been authorized. 201.26 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 201.27 authorize one or more licensed teachers under section 125.05, 201.28 subdivision 1, to operatean outcome-baseda charter school 201.29 subject to approval by the state board of education. If a 201.30 school board elects not to sponsoran outcome-baseda charter 201.31 school, the applicant may appeal the school board's decision to 201.32 the state board of education if two members of the school board 201.33 voted to sponsor the school. If the state board authorizes the 201.34 school, the state board shall sponsor the school according to 201.35 this section. The school shall be organized and operated as a 201.36 cooperative under chapter 308A or nonprofit corporation under 202.1 chapter 317A. 202.2 (b) Before the operators may form and operate a school, the 202.3 sponsor must file an affidavit with the state board of education 202.4 stating its intent to authorizean outcome-baseda charter 202.5 school. The affidavit must state the terms and conditions under 202.6 which the sponsor would authorizean outcome-baseda charter 202.7 school. The state board must approve or disapprove the 202.8 sponsor's proposed authorization within3060 days of receipt of 202.9 the affidavit. Failure to obtain state board approval precludes 202.10 a sponsor from authorizing theoutcome-basedcharter school that 202.11 was the subject of the affidavit. 202.12 (c) The operators authorized to organize and operate a 202.13 school shall hold an election for members of the school's board 202.14 of directors in a timely manner after the school is operating. 202.15 Any staff members who are employed at the school, including 202.16 teachers providing instruction under a contract with a 202.17 cooperative, and all parents of children enrolled in the school 202.18 may participate in the election. Licensed teachers employed at 202.19 the school, including teachers providing instruction under a 202.20 contract with a cooperative, must be a majority of the members 202.21 of the board of directors. A provisional board may operate 202.22 before the election of the school's board of directors. Board 202.23 of director meetings must comply with section 471.705. 202.24 (d) The granting or renewal of a charter by a sponsoring 202.25 entity shall not be conditioned upon the bargaining unit status 202.26 of the employees of the school. 202.27 Subd. 4a. [CONVERSION OF EXISTING SCHOOLS.] A school board 202.28 may convert one or more of its existing schools tooutcome-based202.29 charter schools under this section if 90 percent of the 202.30 full-time teachers at the school sign a petition seeking 202.31 conversion. The conversion must occur at the beginning of an 202.32 academic year. 202.33 Subd. 5. [CONTRACT.] The sponsor's authorization foran202.34outcome-baseda charter school shall be in the form of a written 202.35 contract signed by the sponsor and the board of directors of the 202.36outcome-basedcharter school. The contract foran outcome-based203.1 a charter school shall be in writing and contain at least the 203.2 following: 203.3 (1) a description of a program that carries out one or more 203.4 of the purposes in subdivision 1; 203.5 (2) specific outcomes pupils are to achieve under 203.6 subdivision 10; 203.7 (3) admission policies and procedures; 203.8 (4) management and administration of the school; 203.9 (5) requirements and procedures for program and financial 203.10 audits; 203.11 (6) how the school will comply with subdivisions 8, 13, 15, 203.12 and 21; 203.13 (7) assumption of liability by theoutcome-basedcharter 203.14 school; 203.15 (8) types and amounts of insurance coverage to be obtained 203.16 by theoutcome-basedcharter school; and 203.17 (9) the term of the contract, which may be up to three 203.18 years. 203.19 Subd. 7. [PUBLIC STATUS; EXEMPTION FROM STATUTES AND 203.20 RULES.] A charter school is a public school and is part of the 203.21 state's system of public education. Except as provided in this 203.22 section,an outcome-baseda charter school is exempt from all 203.23 statutes and rules applicable to a school, a school board, or a 203.24 school district, although it may elect to comply with one or 203.25 more provisions of statutes or rules. 203.26 Subd. 8. [REQUIREMENTS.] (a)An outcome-basedA charter 203.27 school shall meet all applicable state and local health and 203.28 safety requirements. 203.29 (b) The school must be located in the sponsoring district, 203.30 unless another school board agrees to locatean outcome-baseda 203.31 charter school sponsored by another district in its boundaries. 203.32 If a school board denies a request to locate within its 203.33 boundariesan outcome-baseda charter school sponsored by 203.34 another district, the sponsoring district may appeal to the 203.35 state board of education. If the state board authorizes the 203.36 school, the state board shall sponsor the school. 204.1 (c)TheA charter school must be nonsectarian in its 204.2 programs, admission policies, employment practices, and all 204.3 other operations. A sponsor may not authorizean outcome-based204.4 a charter school or program that is affiliated with a nonpublic 204.5 sectarian school or a religious institution. 204.6 (d) Charter schools shall not be used as a method of 204.7 providing education or generating revenue for students who are 204.8 being home schooled. 204.9 (e) The primary focus ofthea charter school must be to 204.10 provide a comprehensive program of instruction for at least one 204.11 grade or age group from five through 18 years of age. 204.12 Instruction may be provided to people younger than five years 204.13 and older than 18 years of age. 204.14(e) The(f) A charter school may not charge tuition. 204.15(f) The(g) A charter school is subject to and shall comply 204.16 with chapter 363 and section 126.21. 204.17(g) The(h) A charter school is subject to and shall comply 204.18 with the pupil fair dismissal act, sections 127.26 to 127.39, 204.19 and the Minnesota public school fee law, sections 120.71 to 204.20 120.76. 204.21(h) The(i) A charter school is subject to the same 204.22 financial audits, audit procedures, and audit requirements as a 204.23 school district. The audit must be consistent with the 204.24 requirements of sections 121.904 to 121.917, except to the 204.25 extent deviations are necessary because of the program at the 204.26 school. The department of education, state auditor, or 204.27 legislative auditor may conduct financial, program, or 204.28 compliance audits. 204.29(i) The(j) A charter school is a school district for the 204.30 purposes of tort liability under chapter 466. 204.31 Subd. 9. [ADMISSION REQUIREMENTS.]TheA charter school 204.32 may limit admission to: 204.33 (1) pupils within an age group or grade level; 204.34 (2) people who are eligible to participate in the high 204.35 school graduation incentives program under section 126.22; or 204.36 (3) residents of a specific geographic area where the 205.1 percentage of the population of non-Caucasian people of that 205.2 area is greater than the percentage of the non-Caucasian 205.3 population in the congressional district in which the geographic 205.4 area is located, and as long as the school reflects the racial 205.5 and ethnic diversity of the specific area. 205.6TheA charter school shall enroll an eligible pupil who 205.7 submits a timely application, unless the number of applications 205.8 exceeds the capacity of a program, class, grade level, or 205.9 building. In this case, pupils shall be accepted by lot. 205.10TheA charter school may not limit admission to pupils on 205.11 the basis of intellectual ability, measures of achievement or 205.12 aptitude, or athletic ability. 205.13 Subd. 10. [PUPIL PERFORMANCE.]An outcome-basedA charter 205.14 school must design its programs to at least meet the outcomes 205.15 adopted by the state board of education. In the absence of 205.16 state board requirements, the school must meet the outcomes 205.17 contained in the contract with the sponsor. The achievement 205.18 levels of the outcomes contained in the contract may exceed the 205.19 achievement levels of any outcomes adopted by the state board. 205.20 Subd. 11. [EMPLOYMENT AND OTHER OPERATING MATTERS.]TheA 205.21 charter school shall employ or contract with necessary teachers, 205.22 as defined by section 125.03, subdivision 1, who hold valid 205.23 licenses to perform the particular service for which they are 205.24 employed in the school. The school may employ necessary 205.25 employees who are not required to hold teaching licenses to 205.26 perform duties other than teaching and may contract for other 205.27 services. The school may discharge teachers and nonlicensed 205.28 employees. 205.29 The board of directors also shall decide matters related to 205.30 the operation of the school, including budgeting, curriculum and 205.31 operating procedures. 205.32 Subd. 12. [PUPILS WITH A DISABILITY.]TheA charter school 205.33 must comply with sections 120.03 and 120.17 and rules relating 205.34 to the education of pupils with a disability as though it were a 205.35 school district. 205.36 Subd. 13. [LENGTH OF SCHOOL YEAR.]An outcome-basedA 206.1 charter school shall provide instruction each year for at least 206.2 the number of days required by section 120.101, subdivision 5. 206.3 It may provide instruction throughout the year according to 206.4 sections 120.59 to 120.67 or 121.585. 206.5 Subd. 14. [REPORTS.]An outcome-basedA charter school 206.6 must report at least annually to its sponsor and the state board 206.7 of education the information required by the sponsor or the 206.8 state board. The reports are public data under chapter 13. 206.9 Subd. 15. [TRANSPORTATION.] (a) By July 1 of each year, a 206.10 charter school shall notify the district in which the school is 206.11 located and the department of education if it will provide 206.12 transportation for pupils enrolled at the school for the fiscal 206.13 year. 206.14 (b) If a charter school elects to provide transportation 206.15 for pupils, the transportation shall be provided by the charter 206.16 school within the district in which the charter school is 206.17 located. The state shall pay transportation aid to the charter 206.18 school according to section 124.248, subdivision 1a. 206.19 For pupils who reside outside the district in which the 206.20 charter school is located, the charter school is not required to 206.21 provide or pay for transportation between the pupil's residence 206.22 and the border of the district in which the charter school is 206.23 located. A parent may be reimbursed by the charter school for 206.24 costs of transportation from the pupil's residence to the border 206.25 of the district in which the charter school is located if the 206.26 pupil is from a family whose income is at or below the poverty 206.27 level, as determined by the federal government. The 206.28 reimbursement may not exceed the pupil's actual cost of 206.29 transportation or 15 cents per mile traveled, whichever is 206.30 less. Reimbursement may not be paid for more than 250 miles per 206.31 week. 206.32 At the time a pupil enrolls in a charter school, the 206.33 charter school shall provide the parent or guardian with 206.34 information regarding the transportation. 206.35 (c) If a charter school does not elect to provide 206.36 transportation, transportation for pupils enrolled atathe 207.1 school shall be provided by the district in which the school is 207.2 located, according to sections 120.062, subdivision 9, and 207.3 123.39, subdivision 6, for a pupil residing in the same district 207.4 in which theoutcome-basedcharter school is located. 207.5 Transportation may be provided by the district in which the 207.6 school is located, according to sections 120.062, subdivision 9, 207.7 and 123.39, subdivision 6, for a pupil residing in a different 207.8 district. 207.9 Subd. 16. [LEASED SPACE.]TheA charter school may lease 207.10 space from a board eligible to be a sponsor or other public or 207.11 private nonprofit nonsectarian organization. If a charter 207.12 school is unable to lease appropriate space from an eligible 207.13 board or other public or private nonprofit nonsectarian 207.14 organization, the school may lease space from another 207.15 nonsectarian organization if the department of education, in 207.16 consultation with the department of administration, approves the 207.17 lease. If the school is unable to lease appropriate space from 207.18 public or private nonsectarian organizations, the school may 207.19 lease space from a sectarian organization if the leased space is 207.20 constructed as a school facility and the department of 207.21 education, in consultation with the department of 207.22 administration, approves the lease. 207.23 Subd. 17. [INITIAL COSTS.] A sponsor may authorize a 207.24 charter school before the applicant has secured its space, 207.25 equipment, facilities, and personnel if the applicant indicates 207.26 the authority is necessary for it to raise working capital. A 207.27 sponsor may not authorize a school before the state board of 207.28 education has approved the authorization. 207.29 Subd. 18. [DISSEMINATE INFORMATION.] The sponsor, the 207.30 operators, and the department of education must disseminate 207.31 information to the public on how to form and operatean207.32outcome-baseda charter school and how to utilize the offerings 207.33 ofan outcome-baseda charter school. Particular groups to be 207.34 targeted include low-income families and communities, and 207.35 students of color. 207.36 Subd. 19. [LEAVE TO TEACH IN A CHARTER SCHOOL.] If a 208.1 teacher employed by a school district makes a written request 208.2 for an extended leave of absence to teach atan outcome-baseda 208.3 charter school, the school district must grant the leave. The 208.4 school district must grant a leave for any number of years 208.5 requested by the teacher, and must extend the leave at the 208.6 teacher's request. The school district may require that the 208.7 request for a leave or extension of leave be made up to 90 days 208.8 before the teacher would otherwise have to report for duty. 208.9 Except as otherwise provided in this subdivision and except for 208.10 section 125.60, subdivision 6a, the leave is governed by section 208.11 125.60, including, but not limited to, reinstatement, notice of 208.12 intention to return, seniority, salary, and insurance. 208.13 During a leave, the teacher may continue to aggregate 208.14 benefits and credits in the teachers' retirement association 208.15 account by paying both the employer and employee contributions 208.16 based upon the annual salary of the teacher for the last full 208.17 pay period before the leave began. The retirement association 208.18 may impose reasonable requirements to efficiently administer 208.19 this subdivision. 208.20 Subd. 20. [COLLECTIVE BARGAINING.] Employees of the board 208.21 of directors ofthea charter school may, if otherwise eligible, 208.22 organize under chapter 179A and comply with its provisions. The 208.23 board of directors ofthea charter school is a public employer, 208.24 for the purposes of chapter 179A, upon formation of one or more 208.25 bargaining units at the school. Bargaining units at the school 208.26areshall be separate from any other units within the sponsoring 208.27 district, except that bargaining units may remain part of the 208.28 appropriate unit within the sponsoring district, if the 208.29 employees of the school, the board of directors of the school, 208.30 the exclusive representative of the appropriate unit in the 208.31 sponsoring district, and the board of the sponsoring district 208.32 agree to include the employees in the appropriate unit of the 208.33 sponsoring district. 208.34 Subd. 20a. [TEACHERS RETIREMENT.] Teachers in a charter 208.35 school shall be public school teachers for the purposes of 208.36 chapters 354 and 354a. 209.1 Subd. 21. [CAUSES FOR NONRENEWAL OR TERMINATION.] (a) The 209.2 duration of the contract with a sponsor shall be for the term 209.3 contained in the contract according to subdivision 5. The 209.4 sponsor may or may not renew a contract at the end of the term 209.5 for any ground listed in paragraph (b). A sponsor may 209.6 unilaterally terminate a contract during the term of the 209.7 contract for any ground listed in paragraph (b). At least 60 209.8 days before not renewing or terminating a contract, the sponsor 209.9 shall notify the board of directors of the charter school of the 209.10 proposed action in writing. The notice shall state the grounds 209.11 for the proposed action in reasonable detail and that the 209.12 charter school's board of directors may request in writing an 209.13 informal hearing before the sponsor within 14 days of receiving 209.14 notice of nonrenewal or termination of the contract. Failure by 209.15 the board of directors to make a written request for a hearing 209.16 within the 14-day period shall be treated as acquiescence to the 209.17 proposed action. Upon receiving a timely written request for a 209.18 hearing, the sponsor shall give reasonable notice to the charter 209.19 school's board of directors of the hearing date. The sponsor 209.20 shall conduct an informal hearing before taking final action. 209.21 The sponsor shall take final action to renew or not renew a 209.22 contract by the last day of classes in the school year. If the 209.23 sponsor is a local school board, the school's board of directors 209.24 may appeal the sponsor's decision to the state board of 209.25 education. 209.26 (b) A contract may be terminated or not renewed upon any of 209.27 the following grounds: 209.28 (1) failure to meet the requirements for pupil performance 209.29 contained in the contract; 209.30 (2) failure to meet generally accepted standards of fiscal 209.31 management; 209.32 (3) for violations of law; or 209.33 (4) other good cause shown. 209.34 If a contract is terminated or not renewed, the school 209.35 shall be dissolved according to the applicable provisions of 209.36 chapter 308A or 317A. 210.1 Subd. 22. [PUPIL ENROLLMENT.] If a contract is not renewed 210.2 or is terminated according to subdivision 21, a pupil who 210.3 attended the school, siblings of the pupil, or another pupil who 210.4 resides in the same place as the pupil may enroll in the 210.5 resident district or may submit an application to a nonresident 210.6 district according to section 120.062 at any time. Applications 210.7 and notices required by section 120.062 shall be processed and 210.8 provided in a prompt manner. The application and notice 210.9 deadlines in section 120.062 do not apply under these 210.10 circumstances. 210.11 Subd. 23. [GENERAL AUTHORITY.] The board of directors 210.12 ofan outcome-baseda charter school may sue and be sued. The 210.13 board may not levy taxes or issue bonds. 210.14 Subd. 24. [IMMUNITY.] The state board of education, 210.15 members of the state board, a sponsor, members of the board of a 210.16 sponsor in their official capacity, and employees of a sponsor 210.17 are immune from civil or criminal liability with respect to all 210.18 activities related toan outcome-baseda charter school they 210.19 approve or sponsor. The board of directors shall obtain at 210.20 least the amount of and types of insurance required by the 210.21 contract, according to subdivision 5. 210.22 Sec. 3. Minnesota Statutes 1994, section 120.101, is 210.23 amended by adding a subdivision to read: 210.24 Subd. 5a. [CHILDREN UNDER SEVEN.] Once a pupil under the 210.25 age of seven is enrolled in kindergarten or a higher grade in a 210.26 public school, the pupil is subject to the compulsory attendance 210.27 provisions of this chapter and section 127.20, unless the school 210.28 board of the district in which the pupil is enrolled has a 210.29 policy that exempts children under seven from this subdivision. 210.30 In a school district in which children under seven are 210.31 subject to compulsory attendance under this subdivision, 210.32 paragraphs (a) to (c) apply. 210.33 (a) A parent or guardian may withdraw the pupil from 210.34 enrollment in the school for good cause by notifying the school 210.35 district. Good cause includes, but is not limited to, 210.36 enrollment of the pupil in another school, as defined in 211.1 subdivision 4, or the immaturity of the child. 211.2 (b) When the pupil enrolls, the enrolling official must 211.3 provide the parent or guardian who enrolls the pupil with a 211.4 written explanation of the provisions of this subdivision. 211.5 (c) A pupil under the age of seven who is withdrawn from 211.6 enrollment in the public school under paragraph (a) is no longer 211.7 subject to the compulsory attendance provisions of this chapter. 211.8 In a school district that had adopted a policy to exempt 211.9 children under seven from this subdivision, the school 211.10 district's chief attendance officer must keep the truancy 211.11 enforcement authorities supplied with a copy of the school 211.12 board's current policy certified by the clerk of the school 211.13 board. 211.14 Sec. 4. Minnesota Statutes 1994, section 120.101, 211.15 subdivision 5c, is amended to read: 211.16 Subd. 5c. [EDUCATION RECORDS.] A school district from 211.17 which a student is transferring must transmit the student's 211.18 educational records, within ten business days ofthe date the211.19student withdrawsa request, to the school district in which the 211.20 student is enrolling. School districts must make reasonable 211.21 efforts to determine the school district in which a transferring 211.22 student is next enrolling in order to comply with this 211.23 subdivision. 211.24 Sec. 5. Minnesota Statutes 1994, section 120.74, 211.25 subdivision 1, is amended to read: 211.26 Subdivision 1. (a) A school board is not authorized to 211.27 charge fees in the following areas: 211.28(a)(1) textbooks, workbooks, art materials, laboratory 211.29 supplies, towels; 211.30(b)(2) supplies necessary for participation in any 211.31 instructional course except as authorized in sections 120.73 and 211.32 120.75; 211.33(c)(3) field trips which are required as a part of a basic 211.34 education program or course; 211.35(d)(4) graduation caps, gowns, any specific form of dress 211.36 necessary for any educational program, and diplomas; 212.1(e)(5) instructional costs for necessary school personnel 212.2 employed in any course or educational program required for 212.3 graduation; 212.4(f)(6) library books required to be utilized for any 212.5 educational course or program; 212.6(g)(7) admission fees, dues, or fees for any activity the 212.7 pupil is required to attend; 212.8(h)(8) any admission or examination cost for any required 212.9 educational course or program; 212.10(i)(9) locker rentals; 212.11(j)(10) transportation of pupils(1)(i) for which state 212.12 transportation aid is authorized pursuant to section 124.223 or 212.13(2)(ii) for which a levy is authorized under section 124.226, 212.14 subdivision 5. 212.15 (b) Notwithstanding paragraph (a), clauses (1) and (6), a 212.16 school board may charge fees for textbooks, workbooks, and 212.17 library books, lost or destroyed by students. The board must 212.18 annually notify parents or guardians and students about its 212.19 policy to charge a fee under this paragraph. 212.20 Sec. 6. Minnesota Statutes 1994, section 120.75, 212.21 subdivision 1, is amended to read: 212.22 Subdivision 1. Prior to the initiation of any fee not 212.23 authorized or prohibited by sections 120.73 and 120.74, the 212.24 local school board shall hold a public hearing within the 212.25 district upon three weeks published notice in the district's 212.26 official newspaper. The local school board shall notify the212.27commissioner of any fee it proposes to initiate under this212.28section. If within 45 days of this notification, the212.29commissioner does not disapprove the proposed fee, the local212.30school board may initiate the proposed fee, or such notice as is 212.31 otherwise required for a regular school board meeting given 212.32 three weeks prior to the hearing on the proposed adoption of the 212.33 policy. 212.34 Sec. 7. Minnesota Statutes 1994, section 121.207, 212.35 subdivision 2, is amended to read: 212.36 Subd. 2. [REPORTS; CONTENT.] On or before January 1, 1994, 213.1 the commissioner of education, in consultation with the criminal 213.2 and juvenile information policy group, shall develop a 213.3 standardized form to be used by schools to report incidents 213.4 involving the use or possession of a dangerous weapon in school 213.5 zones. The form shall include the following information: 213.6 (1) a description of each incident, including a description 213.7 of the dangerous weapon involved in the incident; 213.8 (2) where, at what time, and under what circumstances the 213.9 incident occurred; 213.10 (3) information about the offender, other than the 213.11 offender's name, including the offender's age; whether the 213.12 offender was a student and, if so, where the offender attended 213.13 school; and whether the offender was under school expulsion or 213.14 suspension at the time of the incident; 213.15 (4) information about the victim other than the victim's 213.16 name, if any, including the victim's age; whether the victim was 213.17 a student and, if so, where the victim attended school; and if 213.18 the victim was not a student, whether the victim was employed at 213.19 the school; 213.20 (5) the cost of the incident to the school and to the 213.21 victim; and 213.22 (6) the action taken by the school administration to 213.23 respond to the incident. 213.24 The commissioner also shall develop an alternative 213.25 reporting format that allows school districts to provide 213.26 aggregate data, with an option to use computer technology to 213.27 report the data. 213.28 Sec. 8. Minnesota Statutes 1994, section 121.207, 213.29 subdivision 3, is amended to read: 213.30 Subd. 3. [REPORTS; FILING REQUIREMENTS.] By February 1 and 213.31 July 1 of each year, each school shall report incidents 213.32 involving the use or possession of a dangerous weapon in school 213.33 zones to the commissioner of education. The reports shall be 213.34 made on the standardized forms or using the alternative format 213.35 developed by the commissioner under subdivision 2. The 213.36 commissioner shall compile the information it receives from the 214.1 schools and report it annually to the commissioner of public 214.2 safety, the criminal and juvenile information policy group, and 214.3 the legislature. 214.4 Sec. 9. Minnesota Statutes 1994, section 121.931, is 214.5 amended to read: 214.6 121.931 [STATE BOARD POWERS AND DUTIESINFORMATION SYSTEM.] 214.7 Subdivision 1. [COMPONENTS; GOVERNANCEINFORMATION 214.8 SYSTEM.] Thestatewide elementary, secondary and vocational214.9education managementdepartment of education shall develop and 214.10 maintain a computerized information systemshall consist of the214.11ESV-IS and the SDE-IS and shall be governed by the state board214.12according to the provisions of sections 121.93 to 121.936for 214.13 state information needs. 214.14 Subd. 2. [PURPOSES.] The purposes of thestatewide214.15elementary, secondary and vocational education management214.16 computerized information system shall be: 214.17 (a) To provide comparable and accurate educational 214.18 information in a manner which is timely and economical; 214.19 (b) Toprovide a computerized research capability for214.20analysis of education informationensure accountability for 214.21 state appropriations; 214.22 (c) To collect data to assess the needs of learners and 214.23 children; 214.24 (d) To provide school districts with an educational 214.25 information system capability which will meet school district 214.26 management needs; and 214.27(d)(e) To providea capability for the collection and214.28processingfor computerized analysis of educational information 214.29in orderto meet the management needs of the state of Minnesota. 214.30Subd. 3. [SYSTEMS ARCHITECTURE PLAN.] The state board,214.31with the advice and assistance of the ESV computer council,214.32shall develop a systems architecture plan for providing214.33administrative data processing to school districts, the214.34department of education, and the legislature. In developing the214.35plan, the state board shall consider at least the following:214.36user needs; systems design factors; telecommunication215.1requirements; computer hardware technology; and alternative215.2hardware purchase and lease arrangements.215.3Subd. 4. [LONG-RANGE PLAN.] The state board, with the215.4advice and assistance of the ESV computer council and the215.5information policy office, shall develop a long-range plan for215.6providing administrative data processing to school districts,215.7the department of education, and the legislature. In developing215.8the plan, the state board shall consider at least the following:215.9desirable major enhancements to the ESV-IS and SDE-IS; new215.10system development proposals; new or modified approaches to215.11provide support services to districts; the responsibility of215.12regional management information centers to provide reports to215.13the department on behalf of affiliated districts; and related215.14development and implementation time schedules. The long-range215.15plan shall address the feasibility and practicability of215.16utilizing microcomputers, minicomputers, and larger computer215.17systems. The plan shall be updated by September 15 of each215.18even-numbered year. The long-range plan shall consist of one215.19document and shall incorporate the systems architecture plan and215.20all relevant portions of previous documents which have been215.21referred to as the state computing plan.215.22 Subd. 5. [SOFTWARE DEVELOPMENT.]The commissioner shall215.23provide for the development of applications software for ESV-IS215.24and SDE-IS.The commissioner may charge school districts or 215.25 cooperative units for the actual cost of software development 215.26 used by the district or cooperative unit. Any amount received 215.27 is annually appropriated to the department of education for this 215.28 purpose. A school district or cooperative unit may not 215.29 implement a payroll, student, or staff software system after 215.30 June 30, 1994, until the system has been reviewed by the 215.31 department to ensure that it provides the required data elements 215.32 and format. 215.33 Sec. 10. Minnesota Statutes 1994, section 121.932, is 215.34 amended to read: 215.35 121.932 [DEPARTMENT DUTIES.] 215.36 Subd. 2. [DATA ACQUISITION CALENDAR.] The department of 216.1 education shall maintain a current annual data acquisition 216.2 calendar specifying the reports which districts are required to 216.3 provide to the department, the reports which regional management216.4information centers are required to provide to the department216.5for their affiliated districts,and the dates these reports are 216.6 due. 216.7 Subd. 3. [EXEMPTION FROM CHAPTER 14.] The annual data 216.8 acquisition calendar and the essential data elements are exempt 216.9 from the administrative procedure actbut, to the extent216.10authorized by law to adopt rules, the board may use the216.11provisions of section 14.38, subdivisions 5 to 9. 216.12 Subd. 4. [SDE-ISDATA SYSTEM.] The department shall 216.13 develop and operatethe SDE-IS with the advice and assistance of216.14the ESV computer councila computerized data system. TheSDE-IS216.15 system shall include: (a) information required by federal or 216.16 state law or rule; and (b) information needed by the divisions 216.17 of the department in order to disburse funds, to implement 216.18 research or special projects approved by the commissioner, and 216.19 to meet goals or provide information required by the state 216.20 board, the governor, the legislature or the federal government. 216.21The department shall consult the advisory council on uniform216.22financial accounting and reporting standards, the advisory task216.23forces on student reporting and payroll/personnel reporting, and216.24representatives of the senate and the house of representatives216.25and of each division of the department, about needs for216.26information from SDE-IS.216.27 Subd. 4a. [CERTIFICATION OF SOFTWARE VENDORS.] The 216.28 commissioner shall maintain a list of certified service 216.29 providers for administrative data processing software and 216.30 support. To be certified, a service provider must provide the 216.31 commissioner with a written statement identifying software 216.32 products and support functions that will be provided to school 216.33 districts and stating its intent to meet state standards for 216.34 software, data elements, edits, and support services. The 216.35 standards must ensure the quality of the data reported to the 216.36 state. The commissioner must conduct regular training sessions 217.1 for service providers on the standards. If a service provider 217.2 fails to meet the standards, the commissioner must notify the 217.3 service provider of areas of noncompliance and assist the 217.4 service provider in correcting the problem. If the provider 217.5 fails to comply with standards within two months of being 217.6 notified of noncompliance, the commissioner may remove the 217.7 service provider from the list of certified providers. The 217.8 commissioner may recertify a service provider when the 217.9 commissioner determines that the areas of noncompliance have 217.10 been corrected. 217.11 Subd. 4b. [INFORMATION ON CERTIFIED SERVICE 217.12 PROVIDERS.] The commissioner must include the list of certified 217.13 service providers in the annual data acquisition calendar. The 217.14 commissioner must notify school districts if a service provider 217.15 is removed from the list and of the areas of noncompliance. 217.16 Subd. 5. [ESSENTIAL DATA.] The department shall maintain a 217.17 list of essential data elements which must be recorded and 217.18 stored about each pupil, licensed and nonlicensed staff member, 217.19 and educational program. Each school districtshall sendmust 217.20 provide the essential data to theESV regional computer center217.21to which it belongs, where it shall be edited and transmitted to217.22thedepartment in the form and format prescribed by the 217.23 department. 217.24 Subd. 6. [CONTRACTING.] The department may provide by 217.25 contract for the technical support of and the development of 217.26 applications software by a regional management information 217.27 center or by any other appropriate provider. 217.28 Sec. 11. Minnesota Statutes 1994, section 121.933, 217.29 subdivision 1, is amended to read: 217.30 Subdivision 1. [PERMITTED DELEGATIONS.] Thestate board of217.31technical colleges, the state board of education, and the217.32 department may provide, by the delegation of powers and duties 217.33 or by contract, for the implementation and technical support 217.34 ofESV-IS and SDE-ISa computerized information reporting 217.35 system, including the development of applications software 217.36 pursuant to section 121.931, subdivision 5, bya regional218.1management information center or byanyotherappropriate 218.2 provider. 218.3 Sec. 12. Minnesota Statutes 1994, section 121.935, is 218.4 amended to read: 218.5 121.935 [REGIONAL MANAGEMENT INFORMATION CENTERS.] 218.6 Subdivision 1. [CREATION.] Any group of two or more 218.7 independent, special or common school districts maywith the218.8approval of the state board pursuant to sections 121.931 and218.9121.936create a regional management information center pursuant 218.10 to section 123.58 or 471.59 to provide computer services to 218.11 school districts.A regional management information center218.12shall not come into existence until the first July 1 after its218.13creation is approved by the state board or until it can be218.14accommodated by state appropriations, whichever occurs first.218.15Each member of the board of a center created after June 30,218.161991, shall be a current member of a member school board.218.17 Subd. 1a. [CENTER FOR DISTRICTS WITH ALTERNATIVE SYSTEMS.] 218.18 Districts that operate alternative systems approved by the state 218.19 board according to section 121.936 may create one regional 218.20 management information center under section 471.59. The center 218.21 shall have all of the powers authorized under section 218.22 471.59.Only districts that operate approved alternative218.23systems may be members of the center. Upon receiving the218.24approval of the state board to operate an alternative system, a218.25district may become a member of the center.218.26Each member of the center board shall be a current member218.27of a member school board.218.28 The center board may purchase or lease equipment. It may 218.29 not employ any staff but may enter into a term contract for 218.30 services. A person providing services according to a contract 218.31 with the center board is not a state employee. 218.32The center shall perform the duties required by subdivision218.332, except clauses (c), (d), and (g).The department shall 218.34 provide the center all services that are provided to regional 218.35 centers formed under subdivision 1, including transferring 218.36 software and providing accounting assistance. 219.1Subd. 2. [DUTIES.] Every regional management information219.2center shall:219.3(a) assist its affiliated districts in complying with the219.4reporting requirements of the annual data acquisition calendar219.5and the rules of the state board of education;219.6(b) respond within 15 calendar days to requests from the219.7department for district information provided to the region for219.8state reporting of information, based on the data elements in219.9the data element dictionary;219.10(c) operate financial management information systems219.11consistent with the uniform financial accounting and reporting219.12standards adopted by the commissioner pursuant to sections219.13121.904 to 121.917;219.14(d) make available to districts the opportunity to219.15participate fully in all the subsystems of ESV-IS;219.16(e) develop and maintain a plan to provide services during219.17a system failure or a disaster;219.18(f) comply with the requirement in section 121.908,219.19subdivision 2, on behalf of districts affiliated with it; and219.20(g) operate fixed assets property management information219.21systems consistent with the uniform property accounting and219.22reporting standards adopted by the commissioner.219.23Subd. 4. [ANNUAL BUDGET ESTIMATES.] Every regional219.24management information center shall submit to the department by219.25July 1 an annual budget estimate for its administrative and219.26management computer activities. The budget estimates shall be219.27in a program budget format and shall include all estimated and219.28actual revenues, expenditures, and fund balances of the center.219.29Budget forms developed pursuant to section 16A.10 may be used219.30for these estimates. The department of education shall assemble219.31this budget information into a supplemental budget summary for219.32the statewide elementary, secondary, and vocational management219.33information system. Copies of the budget summary shall be219.34provided to the ESV computer council and shall be available to219.35the legislature upon request.219.36 Subd. 6. [FEES.] Regional management information centers 220.1 may charge fees to affiliated districts for the cost of services 220.2 provided to the district. 220.3Subd. 8. [COMPUTER HARDWARE PURCHASE.] A regional220.4management information center may not purchase or enter into a220.5lease-purchase agreement for computer hardware in excess of220.6$100,000 without unanimous consent of the center board.220.7 Subd. 9. [FINANCIAL SERVICES.] Regional management 220.8 information centers may provide financial management information 220.9 services to cities, counties, towns, or other governmental units 220.10 at mutually negotiated prices. 220.11 Sec. 13. Minnesota Statutes 1994, section 122.91, 220.12 subdivision 1, is amended to read: 220.13 Subdivision 1. [PURPOSE.] The purpose of an education 220.14 district is to increase educational opportunities for learners 220.15 by increasing cooperation and coordination among school 220.16 districts, other governmental units, and post-secondary 220.17 institutions, and to replace other existing cooperative 220.18 structures. 220.19 Sec. 14. Minnesota Statutes 1994, section 122.91, 220.20 subdivision 2, is amended to read: 220.21 Subd. 2. [AGREEMENT.] School boards meeting the 220.22 requirements of subdivision 3 may enter into a written agreement 220.23 to establish an education district. Once established, cities, 220.24 counties, and other governmental units as defined in section 220.25 471.59, may become members of the education district. The 220.26 agreement and subsequent amendments must be adopted by majority 220.27 vote of the full membership of each board. 220.28 Sec. 15. Minnesota Statutes 1994, section 122.91, 220.29 subdivision 2a, is amended to read: 220.30 Subd. 2a. [AGREEMENT; SPECIAL PROVISIONS.] The education 220.31 district agreement may contain a special provision adopted by 220.32 the vote of a majority of the full membership of each of the 220.33 boards of the member school districts to allow a post-secondary 220.34 institution or cities, counties, and other governmental units to 220.35 become a member of the education district. 220.36 Sec. 16. Minnesota Statutes 1994, section 122.92, 221.1 subdivision 1, is amended to read: 221.2 Subdivision 1. [SCHOOL DISTRICT REPRESENTATION.] The 221.3 education district board shall be composed of at least one 221.4 representative appointed by the school board or governing board 221.5 of each memberdistrict. Each representative must be a member 221.6 of the appointing school or governing board. Each 221.7 representative shall serve at the pleasure of the 221.8 appointingschoolboard and may be recalled by a majority vote 221.9 of the appointingschoolboard. Each representative shall serve 221.10 for the term that is specified in the agreement. The board 221.11 shall select its officers from among its members and shall 221.12 determine the terms of the officers. The board shall adopt 221.13 bylaws for the conduct of its business. The board may conduct 221.14 public meetings via interactive television if the board complies 221.15 with section 471.705 in each location where board members are 221.16 present. 221.17 Sec. 17. Minnesota Statutes 1994, section 122.93, 221.18 subdivision 1, is amended to read: 221.19 Subdivision 1. [COORDINATION.] An education district board 221.20 shall coordinate the programs and services of the education 221.21 district according to the terms of the written agreement. The 221.22 board shall implement the agreement for delivering educational 221.23 services defined in section 123.582, subdivisions 7 and 8, 221.24 needed in the education district. 221.25 Sec. 18. Minnesota Statutes 1994, section 122.94, 221.26 subdivision 1, is amended to read: 221.27 Subdivision 1. [ESTABLISHMENT.] An education district 221.28 board shall adopt a comprehensive agreement for continuous 221.29 learning. The agreement must address methods to improve the 221.30 educational opportunities available in the education district. 221.31It must be submitted for review by the educational cooperative221.32service unit within which the majority of the education district221.33membership lies.The education district board shall review the 221.34 agreement annually and propose necessary amendments to the 221.35 member districts. 221.36 Sec. 19. Minnesota Statutes 1994, section 123.34, is 222.1 amended by adding a subdivision to read: 222.2 Subd. 9a. [DISCLOSE PAST BUYOUTS OR CONTRACT IS VOID.] (a) 222.3 For the purposes of paragraph (b), a "buyout agreement" is any 222.4 agreement under which a person employed as a superintendent left 222.5 the position before the term of the contract was over and 222.6 received a sum of money, something else of value, or the right 222.7 to something of value for some purpose other than performing the 222.8 services of a superintendent. 222.9 (b) Before a person may enter into a superintendent's 222.10 contract with a school board, the candidate shall disclose in 222.11 writing the existence and terms of any previous buyout 222.12 agreement, including amounts and the purpose for the payments, 222.13 relating to a superintendent's contract with another school 222.14 board. A disclosure made under this paragraph is public data. 222.15 (c) The superintendent's contract of a person who fails to 222.16 make a timely disclosure under paragraph (b) is void. 222.17 Sec. 20. Minnesota Statutes 1994, section 123.35, 222.18 subdivision 19b, is amended to read: 222.19 Subd. 19b. [WITHDRAWING FROM COOPERATIVE.] If a school 222.20 district withdraws from a cooperative unit defined in paragraph 222.21 (d), the distribution of assets and assignment of liabilities to 222.22 the withdrawing district shall be determined according to this 222.23 subdivision. 222.24 (a) The withdrawing district remains responsible for its 222.25 share of debt incurred by the cooperative unit according to 222.26 subdivision 19a. The school district and cooperative unit may 222.27 mutually agree, through a board resolution by each, to terms and 222.28 conditions of the distribution of assets and the assignment of 222.29 liabilities. 222.30 (b) If the cooperative unit and the school district cannot 222.31 agree on the terms and conditions, the commissioner of education 222.32 shall resolve the dispute by determining the district's 222.33 proportionate share of assets and liabilities based on the 222.34 district's enrollment, financial contribution, usage, or other 222.35 factor or combination of factors determined appropriate by the 222.36 commissioner. The assets shall be disbursed to the withdrawing 223.1 district in a manner that minimizes financial disruption to the 223.2 cooperative unit. 223.3 (c) Assets related to an insurance pool shall not be 223.4 disbursed to a member district under paragraph (b). 223.5 (d) For the purposes of this section, a cooperative unit is: 223.6 (1) an education district organized under sections 122.91 223.7 to 122.95; 223.8 (2) a cooperative vocational center organized under section 223.9 123.351; 223.10 (3) an intermediate district organized under chapter 136D; 223.11 (4)an educational cooperative service unit organized under223.12section 123.58a service cooperative organized under section 223.13 123.582; or 223.14 (5) a regional management information center organized 223.15 under section 121.935 or as a joint powers district according to 223.16 section 471.59. 223.17 Sec. 21. Minnesota Statutes 1994, section 123.351, 223.18 subdivision 1, is amended to read: 223.19 Subdivision 1. [ESTABLISHMENT.] Two or more independent 223.20 school districts may enter into an agreement to establish a 223.21 cooperative center to provide for vocational education and other 223.22 educational services upon the vote of a majority of the full 223.23 membership of each of the boards of the districts entering into 223.24 the agreement. The agreement may also provide for membership by 223.25 cities, counties, and other governmental units as defined in 223.26 section 471.59. When a resolution approving this action has 223.27 been adopted by the board of a district, the resolution shall be 223.28 published once in a newspaper of general circulation in the 223.29 district. If a petition for referendum on the question of the 223.30 district entering into the agreement, containing signatures of 223.31 qualified voters of the district equal to five percent of the 223.32 number of voters at the last school district general election, 223.33 is filed with the clerk of the board within 60 days after 223.34 publication of the resolution, the board shall not enter into 223.35 the agreement until the question has been submitted to the 223.36 voters of the district at a special election. This election 224.1 shall be conducted and canvassed in the same manner as school 224.2 district general elections. If a majority of the total number 224.3 of votes cast on the question within the district is in favor of 224.4 the proposition, the board may enter into an agreement to 224.5 establish the center for purposes described in this section. 224.6 Sec. 22. Minnesota Statutes 1994, section 123.351, 224.7 subdivision 3, is amended to read: 224.8 Subd. 3. [GOVERNING BOARD.] (a) The center shall be 224.9 operated by a center board of not less than five members which 224.10 shall consist of members from school boards of each of the 224.11 participating school districts within the center and member 224.12 cities, counties, and other governmental units, appointed by 224.13 their respectiveschoolboards. Each participating school 224.14 district shall have at least one member on the board. The board 224.15 shall choose an administrative officer to administer board 224.16 policy and directives who shall serve as an ex officio member of 224.17 the board but shall not have a vote. 224.18 (b) The terms of office of the first members of the board 224.19 shall be determined by lot as follows: one-third of the members 224.20 for one year, one-third for two years, and the remainder for 224.21 three years, all terms to expire on June 30 of the appropriate 224.22 year; provided that if the number of members is not evenly 224.23 divisible by three, the membership will be as evenly distributed 224.24 as possible among one, two and three year terms with the 224.25 remaining members serving the three year term. Thereafter the 224.26 terms shall be for three years commencing on July 1 of each 224.27 year. If a vacancy occurs on the center board, it shall be 224.28 filled by the appropriate school board within 90 days. A person 224.29 appointed to the center board shall qualify as a board member by 224.30 filing with the chair a written certificate of appointment from 224.31 the appointing school board. 224.32 (c) The first meeting of a center board shall be at a time 224.33 mutually agreed upon by board members. At this meeting, the 224.34 center board shall choose its officers and conduct any other 224.35 necessary organizational business. Thereafter the center board 224.36 shall meet on the first of July of each year or as soon 225.1 thereafter as practicable pursuant to notice sent to all center 225.2 board members by the chief executive officer of the center. 225.3 (d) The officers of the center board shall be a chair, 225.4 vice-chair, clerk and treasurer, no two of whom when possible 225.5 shall be from the same school district. The chair shall preside 225.6 at all meetings of the center board except in the chair's 225.7 absence the vice-chair shall preside. The clerk shall keep a 225.8 complete record of the minutes of each meeting and the treasurer 225.9 shall be the custodian of the funds of the center. Insofar as 225.10 applicable, sections 123.33 and 123.34, shall apply to the board 225.11 and officers of the center. 225.12 (e) Each participating school district shall have equal 225.13 voting power with at least one vote. A majority of the center 225.14 board shall be a quorum. Any motion other than adjournment 225.15 shall pass only upon receiving a majority of the votes of the 225.16 entire center board. 225.17 Sec. 23. Minnesota Statutes 1994, section 123.351, 225.18 subdivision 4, is amended to read: 225.19 Subd. 4. [POWERS AND DUTIES.] (a) The center board shall 225.20 have the general charge of the business of the center and the 225.21 ownership of facilities. Where applicable, section 123.36, 225.22 shall apply. The center board may not issue bonds in its 225.23 behalf. Each participating district may issue its bonds for the 225.24 purpose of acquisition and betterment of center facilities in 225.25 the amount certified by the center board to such participating 225.26 district in accordance with chapter 475. 225.27 (b) The center board (1) may furnish vocational offerings 225.28 to any eligible person residing in any participating district; 225.29 (2) may provide special education for the handicapped and 225.30 disadvantaged; and (3) may provide any other educational 225.31 programs or services defined in section 123.582, subdivisions 7 225.32 and 8, agreed upon by the participatingdistrictsmembers. 225.33 Academic offerings shall be provided only under the direction of 225.34 properly licensed academic supervisory personnel. 225.35 (c) In accordance with subdivision 5, clause (b), the 225.36 center board shall certify to each participating district the 226.1 amount of funds assessed to the district as its proportionate 226.2 share required for the conduct of the educational programs, 226.3 payment of indebtedness, and all other proper expenses of the 226.4 center. 226.5 (d) The center board shall employ and contract with 226.6 necessary qualified teachers and administrators and may 226.7 discharge the same for cause pursuant to section 125.12. The 226.8 authority for selection and employment of a director shall be 226.9 vested in the center board. Notwithstanding the provisions of 226.10 section 125.12, subdivision 6a or 6b, no individual shall have a 226.11 right to employment as a director based on seniority or order of 226.12 employment by the center. The board may employ and discharge 226.13 other necessary employees and may contract for other services 226.14 deemed necessary. 226.15 (e) The center board may provide an educational program for 226.16 secondary and adult vocational phases of instruction. The high 226.17 school phase of its educational program shall be offered as a 226.18 component of the comprehensive curriculum offered by each of the 226.19 participating school districts. Graduation shall be from the 226.20 student's resident high school district. Insofar as applicable, 226.21 sections 123.35 to 123.40, shall apply. 226.22 (f) The center board may prescribe rates of tuition for 226.23 attendance in its programs by adults and nonmember district 226.24 secondary students. 226.25 Sec. 24. Minnesota Statutes 1994, section 123.351, 226.26 subdivision 5, is amended to read: 226.27 Subd. 5. [FINANCING.] (a) Any center board established 226.28 pursuant to this section is a public corporation and agency and 226.29 may receive and disburse federal, state, and local funds made 226.30 available to it. No participating school district or member 226.31 shall have any additional individual liability for the debts or 226.32 obligations of the center except that assessment which has been 226.33 certified as its proportionate share in accordance with 226.34 subdivision 5, clause (b) and subdivision 4, clauses (a) and 226.35 (c). A member of the center board shall have such liability as 226.36 is applicable to a member of an independent school district 227.1 board. Any property, real or personal, acquired or owned by the 227.2 center board for its purposes shall be exempt from taxation by 227.3 the state or any of its political subdivisions. 227.4 (b) The center board may, in each year, for the purpose of 227.5 paying any administrative, planning, operating, or capital 227.6 expenses incurred or to be incurred, assess and certify to each 227.7 participating school district its proportionate share of any and 227.8 all expenses. This share shall be based upon an equitable 227.9 distribution formula agreed upon by the participating 227.10 districts. Each participating district shall remit its 227.11 assessment to the center board within 30 days after receipt. 227.12 The assessments shall be paid within the maximum levy 227.13 limitations of each participating district. 227.14 Sec. 25. [123.582] [SERVICE COOPERATIVES.] 227.15 Subdivision 1. [ESTABLISHMENT OF SERVICE 227.16 COOPERATIVES.] (a) Ten service cooperatives, hereafter 227.17 designated as SCs, are established. Geographical boundaries for 227.18 each SC shall coincide with those identified in governor's 227.19 executive orders 8, dated September 1, 1971, and 59, dated May 227.20 29, 1973, issued pursuant to the regional development act of 227.21 1969, Minnesota Statutes, sections 462.381 to 462.397, with the 227.22 following exceptions: 227.23 (1) development regions one and two shall be combined to 227.24 form a single SC; 227.25 (2) development regions six east and six west shall be 227.26 combined to form a single SC; and 227.27 (3) development regions seven east and seven west shall be 227.28 combined to form a single SC. 227.29 (b) The SC shall cooperate with the regional development 227.30 commission for the region with which its boundaries coincide but 227.31 shall not be responsible to nor governed by that regional 227.32 development commission. 227.33 (c) Two or more identified SCs may, upon approval by a 227.34 majority of the members in each affected SC, be combined and 227.35 administered as a single SC. 227.36 Subd. 2. [PURPOSE OF SC.] The primary purposes of 228.1 designation as a SC shall be to perform planning on a regional 228.2 basis and to assist in meeting specific needs of clients in 228.3 participating governmental units which could be better provided 228.4 by a SC than by the members themselves. The SC shall provide 228.5 those programs and services which are determined, pursuant to 228.6 subdivision 7, to be priority needs of the particular region and 228.7 shall assist in meeting special needs which arise from 228.8 fundamental constraints upon individual members. 228.9 Subd. 3. [MEMBERSHIP AND PARTICIPATION.] Full membership 228.10 in a SC shall be limited to public school districts, cities, 228.11 counties, and other governmental units as defined in section 228.12 471.59, but nonvoting memberships shall be available to 228.13 nonpublic school administrative units and other partnership 228.14 agencies or organizations within the SC. A school district, 228.15 city, county, or other governmental unit or nonprofit 228.16 organization may belong to one or more SCs. Participation in 228.17 programs and services provided by the SC shall be 228.18 discretionary. No school district, city, county, or other 228.19 governmental unit shall be compelled to participate in these 228.20 services under authority of this section. Nonpublic school 228.21 students and personnel are encouraged to participate in programs 228.22 and services to the extent allowed by law. 228.23 Subd. 4. [GOVERNING BOARD.] (a) The care, management, and 228.24 control of a SC shall be vested in a board of directors composed 228.25 of not less than six nor more than 15 members. A majority of 228.26 the members of the SC board of directors shall be current 228.27 members of school boards of participating public school 228.28 districts. Election of the school board members to the SC board 228.29 of directors shall be by vote of all current school board 228.30 members of participating public school districts with each 228.31 school board member having one vote. The remaining board 228.32 members may be representatives at large appointed by the board 228.33 members or elected as representatives by other participating 228.34 agencies, such as cities, counties, or other governmental units. 228.35 (b) The election timeline shall be compatible with those 228.36 for school board members and shall be addressed within the 229.1 bylaws of each SC. 229.2 (c) A vacancy on the SC board which results in an unexpired 229.3 term may be filled by appointment by the SC board of directors 229.4 until such vacancy can be filled at the next board election. 229.5 (d) At the organizational meeting, the SC board shall 229.6 choose its officers and conduct any other necessary 229.7 organizational business. The SC board may, at its discretion, 229.8 appoint up to three members at large to the SC board as ex 229.9 officio, nonvoting members of the board and shall encourage the 229.10 advisory participation of a cross-section of school and agency 229.11 personnel within the SC to the extent allowed by law. 229.12 (e) The officers of the SC board shall be a chair, 229.13 vice-chair, clerk, and treasurer, no two of whom when possible 229.14 shall be from the same agency. 229.15 (f) A member of the SC board shall have the same liability 229.16 applicable to a member of an independent school board or other 229.17 elected governmental officials. 229.18 Subd. 5. [DUTIES AND POWERS OF SC BOARD OF DIRECTORS.] The 229.19 board of directors shall have authority to maintain and operate 229.20 a SC. Subject to the availability of necessary resources, the 229.21 powers and duties of this board shall include the following: 229.22 (a) The board of directors shall submit, by June 1 of each 229.23 year to each participating member, an annual plan which 229.24 describes the objectives and procedures to be implemented in 229.25 assisting in resolution of the needs of the SC. 229.26 (b) The SC board of directors shall provide adequate 229.27 office, service center, and administrative facilities by lease, 229.28 purchase, gift, or otherwise. 229.29 (c) The SC board of directors shall employ a central 229.30 administrative staff and other personnel as necessary to provide 229.31 and support the agreed upon programs and services. The board 229.32 may discharge staff and personnel pursuant to applicable 229.33 provisions of law. SC staff and personnel may participate in 229.34 retirement programs and any other programs available to public 229.35 school staff and personnel. 229.36 (d) The SC board of directors may appoint special advisory 230.1 committees composed of superintendents, central office 230.2 personnel, building principals, teachers, parents, lay persons, 230.3 and representatives from cities, counties, and other 230.4 governmental units. 230.5 (e) The SC board of directors may employ service area 230.6 personnel pursuant to licensure and certification standards 230.7 developed by the appropriate state agency such as the state 230.8 board and the state board of teaching. 230.9 (f) The SC board of directors may enter into contracts with 230.10 school boards of local districts including school districts 230.11 outside the SC area. 230.12 (g) The SC board of directors may enter into contracts with 230.13 other public and private agencies and institutions to provide 230.14 administrative staff and other personnel as necessary to furnish 230.15 and support the agreed upon programs and services. 230.16 (h) The SC board of directors shall exercise all powers and 230.17 carry out all duties delegated to it by members under provisions 230.18 of the SC bylaws. The SC board of directors shall be governed, 230.19 when not otherwise provided, by applicable laws of the state. 230.20 (i) The SC board of directors shall submit an annual 230.21 evaluation report of the effectiveness of programs and services 230.22 to the members by September 1 of each year following the 230.23 previous June 30 in which the programs and services were 230.24 provided. 230.25 (j) The SC board is encouraged to establish cooperative, 230.26 working relationships and partnerships with post-secondary 230.27 educational institutions, other public agencies, business, and 230.28 industry. 230.29 Subd. 6. [APPOINTMENT OF AN ADVISORY COUNCIL.] There may 230.30 be advisory councils selected to give advice and counsel to the 230.31 SC board of directors. The councils may be composed of 230.32 representatives from public and nonpublic schools, cities, 230.33 counties, and other governmental units. 230.34 Subd. 7. [EDUCATIONAL PROGRAMS AND SERVICES.] The board of 230.35 directors of each SC shall submit annually a plan to the 230.36 members. The plan shall identify the programs and services 231.1 which are suggested for implementation by the SC during the 231.2 following year and shall contain components of long-range 231.3 planning determined by the SC. These programs and services may 231.4 include, but are not limited to, the following areas: 231.5 (1) administrative services; 231.6 (2) curriculum development; 231.7 (3) data processing; 231.8 (4) distance learning and other telecommunication services; 231.9 (5) evaluation and research; 231.10 (6) staff development; 231.11 (7) media and technology centers; 231.12 (8) publication and dissemination of materials; 231.13 (9) pupil personnel services; 231.14 (10) planning; 231.15 (11) secondary, post-secondary, community, adult, and adult 231.16 vocational education; 231.17 (12) teaching and learning services, including services for 231.18 students with special talents and special needs; 231.19 (13) employee personnel services; 231.20 (14) vocational rehabilitation; 231.21 (15) health, diagnostic, and child development services and 231.22 centers; 231.23 (16) leadership or direction in early childhood and family 231.24 education; 231.25 (17) community services; 231.26 (18) shared time programs; 231.27 (19) fiscal services and risk management programs; 231.28 (20) technology planning, training, and support services; 231.29 (21) health and safety services; 231.30 (22) student academic challenges; and 231.31 (23) cooperative purchasing services. 231.32 Subd. 8. [TECHNICAL ASSISTANCE.] Service cooperatives 231.33 shall, to the extent possible, make technical assistance for 231.34 long-range planning available to school districts upon request 231.35 and shall establish a common database for local and regional 231.36 decision making. 232.1 Subd. 9. [FINANCIAL SUPPORT FOR THE SERVICE 232.2 COOPERATIVES.] (a) Financial support for SC programs and 232.3 services shall be provided by participating members with 232.4 private, state, and federal financial support supplementing as 232.5 available. The SC board of directors may, in each year, for the 232.6 purpose of paying any administrative, planning, operating, or 232.7 capital expenses incurred or to be incurred, assess and certify 232.8 to each participating school district, nonpublic school 232.9 administrative unit, city, county, and other governmental unit 232.10 its proportionate share of all expenses. This share shall be 232.11 based upon the extent of participation by each school district, 232.12 nonpublic school administrative unit, city, county, or other 232.13 governmental unit and shall be in the form of a service fee. 232.14 Each participating school district, nonpublic school 232.15 administrative unit, city, county, or other governmental unit 232.16 shall remit its assessment to the SC board as provided in the SC 232.17 bylaws. The assessments shall be paid within the maximum levy 232.18 limitations of each participating member. No participating 232.19 member shall have any additional liability for the debts or 232.20 obligations of the SC except that assessment which has been 232.21 certified as its proportionate share and any other liability the 232.22 member assumes under section 123.35, subdivision 19b. 232.23 (b) Any property acquired by the SC board is public 232.24 property to be used for essential public and governmental 232.25 purposes which shall be exempt from all taxes and special 232.26 assessments levied by a city, county, state, or political 232.27 subdivision thereof. If the SC is dissolved, its property must 232.28 be distributed to the members at the time of the dissolution. 232.29 (c) A member may elect to withdraw participation in the SC 232.30 by a majority vote of its full board membership and upon 232.31 compliance with the applicable withdrawal provisions of the SC 232.32 organizational agreement. The withdrawal shall be effective on 232.33 the June 30 following receipt by the board of directors of 232.34 written notification of the withdrawal by February 1 of the same 232.35 year. Notwithstanding the withdrawal, the proportionate share 232.36 of any expenses already certified to the withdrawing member for 233.1 the SC shall be paid to the SC board. 233.2 (d) The SC is a public corporation and agency and its board 233.3 of directors may make application for, accept, and expend 233.4 private, state, and federal funds that are available for 233.5 programs of the members. 233.6 (e) The SC is a public corporation and agency and as such, 233.7 no earnings or interests of the SC may inure to the benefit of 233.8 an individual or private entity. 233.9 Subd. 10. [ANNUAL MEETING.] Each SC shall conduct a 233.10 meeting at least annually for its members. 233.11 Subd. 11. [JOINT POWERS ACT.] Nothing in this section 233.12 shall restrict the authority granted to school district boards 233.13 of education by section 471.59. 233.14 Sec. 26. Minnesota Statutes 1994, section 123.70, 233.15 subdivision 8, is amended to read: 233.16 Subd. 8. The administrator or other person having general 233.17 control and supervision of the elementary or secondary school 233.18 shall file a report with the commissioner of education on all 233.19 persons enrolled in the school, except that the superintendent 233.20 of each school district shall file a report with the 233.21 commissioner of education for all persons within the district 233.22 receiving instruction in a home school in compliance with 233.23 sections 120.101 and 120.102. The parent of persons receiving 233.24 instruction in a home school shall submit the statements as 233.25 required by subdivisions 1, 2, 3, and 4 to the superintendent of 233.26 the school district in which the person resides by October 1 of 233.27 each school year. The school report shall be prepared on forms 233.28 developed jointly by the commissioner of health and the 233.29 commissioner of education and be distributed to the local school 233.30 districts by the commissioner of health and shall state the 233.31 number of persons attending the school, the number of persons 233.32 who have not been immunized according to subdivision 1 or 2, and 233.33 the number of persons who received an exemption under 233.34 subdivision 3, clause (c) or (d). The school report shall be 233.35 filed with the commissioner of education within 60 days of the 233.36 commencement of each new school term. Upon request, a district 234.1 shall be given a 60-day extension for filing the school report. 234.2 The commissioner of education shall forward the report, or a 234.3 copy thereof, to the commissioner of health who shall provide 234.4 summary reports to boards of health as defined in section 234.5 145A.02, subdivision 2. The administrator or other person 234.6 having general control and supervision of the child care 234.7 facility shall file a report with the commissioner of human 234.8 services on all persons enrolled in the child care facility. 234.9 The child care facility report must be prepared on forms 234.10 developed jointly by the commissioner of health and the 234.11 commissioner of human services and be distributed to child care 234.12 facilities by the commissioner of health and must state the 234.13 number of persons enrolled in the facility, the number of 234.14 persons with no immunizations, the number of persons who 234.15 received an exemption under subdivision 3, clause (c) or (d), 234.16 and the number of persons with partial or full immunization 234.17 histories. The child care facility report shall be filed with 234.18 the commissioner of human services by November 1 of each year. 234.19 The commissioner of human services shall forward the report, or 234.20 a copy thereof, to the commissioner of health who shall provide 234.21 summary reports to boards of health as defined in section 234.22 145A.02, subdivision 2. The report required by this subdivision 234.23 is not required of a family child care or group family child 234.24 care facility, for prekindergarten children enrolled in any 234.25 elementary or secondary school provided services according to 234.26 section 120.17, subdivision 2, nor for child care facilities in 234.27 which at least 75 percent of children in the facility 234.28 participate on a one-time only or occasional basis to a maximum 234.29 of 45 hours per child, per month. 234.30 Sec. 27. Minnesota Statutes 1994, section 124.193, is 234.31 amended to read: 234.32 124.193 [PROHIBITED AID AND LEVIES.] 234.33 Unless specifically permitted in the provision authorizing 234.34 an aid or a levy, cooperative units of government defined in 234.35 section 123.35, subdivision 19b, paragraph (d), are prohibited 234.36 from making a property tax levy or qualifying for or receiving 235.1 any form of state aid except that a cooperative unit may apply 235.2 for and receive a grant on behalf of its members. 235.3 Sec. 28. Minnesota Statutes 1994, section 126.031, 235.4 subdivision 1, is amended to read: 235.5 Subdivision 1. [INSTRUCTIONREQUIREDPERMITTED.] Every 235.6 public elementary and secondary schoolshallmay provide an 235.7 instructional program in chemical abuse and the prevention of 235.8 chemical dependency. The school districts shall involve 235.9 parents, students, health care professionals, state department 235.10 staff, and other members of the community with a particular 235.11 interest in chemical dependency prevention in developing the 235.12 curriculum. 235.13 Sec. 29. Minnesota Statutes 1994, section 126.78, 235.14 subdivision 2, is amended to read: 235.15 Subd. 2. [GRANT APPLICATION.] To be eligible to receive a 235.16 grant, a school district, an education district, a service 235.17 cooperative, or a group of districts that cooperate for a 235.18 particular purpose must submit an application to the 235.19 commissioner in the form and manner and according to the 235.20 timeline established by the commissioner. The application must 235.21 describe how the applicant will: (1) continue or integrate into 235.22 its existing K-12 curriculum a program for violence prevention 235.23 that contains the program components listed in section 126.77; 235.24 (2) collaborate with local organizations involved in violence 235.25 prevention and intervention; and (3) structure the program to 235.26 reflect the characteristics of the children, their families and 235.27 the community involved in the program. The commissioner may 235.28 require additional information from the applicant. When 235.29 reviewing the applications, the commissioner shall determine 235.30 whether the applicant has met the requirements of this 235.31 subdivision. 235.32 Sec. 30. [127.311] [GOOD FAITH EXCEPTION.] 235.33 A violation of the technical provisions of the pupil fair 235.34 dismissal act of 1974, made in good faith, is not a defense to a 235.35 disciplinary procedure under the act unless the pupil can 235.36 demonstrate actual prejudice as a result of the violation. 236.1 Sec. 31. Minnesota Statutes 1994, section 127.40, is 236.2 amended to read: 236.3 127.40 [DEFINITIONS.] 236.4 Subdivision 1. [REMOVAL FROM CLASS.] "Removal from class" 236.5 and "removal" mean any actions taken by a teacher, principal, or 236.6 other school district employee to prohibit a pupil from 236.7 attending a class or activity period for a period of time not to 236.8 exceedthree class or activity periodsfive days, pursuant to 236.9 procedures established in the school district discipline policy 236.10 adopted by the school board pursuant to section 127.41. 236.11 Subd. 2. [CLASS PERIOD.] "Class period" or "activity 236.12 period" means, in secondary grades, instruction for a given236.13course of study. A class period or activity period means, in236.14elementary grades, a period of time not to exceed one hour,236.15regardless of the subject of instructiona period of time as 236.16 defined in the district's written discipline policy. 236.17 Subd. 3. [SCHOOL SITE MEDIATION BOARD.] "School site 236.18 mediation board" means a board representative of parents of 236.19 students in the building, staff, and students that shall have 236.20 the responsibilities as defined in section 127.411. The 236.21 principal or other person having general control and supervision 236.22 of the school, shall serve as an ex officio member of the board. 236.23 Subd. 4. [SCHOOL-BASED OMBUDSPERSON.] "School-based 236.24 ombudsperson" means an administrator, a teacher, a parent, or a 236.25 student representative who shall have the responsibilities as 236.26 outlined in section 127.412. 236.27 Sec. 32. Minnesota Statutes 1994, section 127.41, is 236.28 amended to read: 236.29 127.41 [DISCIPLINE AND REMOVAL OF STUDENTS FROM CLASS.] 236.30 Subdivision 1. [REQUIRED POLICY.]Prior to the beginning236.31of the 1984-1985 school yearEach school board shall adopt a 236.32 written districtwide school discipline policy which shall 236.33 include written rules of conduct forpupilsstudents, minimum 236.34 consequences for violations of the rules, and grounds and 236.35 procedures for removal ofpupilsa student from class. The 236.36 policy shall be developed with the participation of 237.1 administrators, teachers, employees, pupils, parents, community 237.2 members, and such other individuals or organizations as the 237.3 board determines appropriate. A school site council may adopt 237.4 additional provisions to the policy subject to the approval of 237.5 the school board. 237.6 Subd. 2. [GROUNDS FOR REMOVAL FROM CLASS.] The policy 237.7 shall establish the various grounds for which apupilstudent 237.8 may be removed from a class in the district for a period of time 237.9 pursuant to the procedures specified in the policy. The grounds 237.10 in the policy shall include at least the following provisions as 237.11 well as other grounds determined appropriate by the board: 237.12 (a) willful conduct which materially and substantially 237.13 disrupts the rights of others to an education; 237.14 (b) willful conduct which endangers school district 237.15 employees, thepupil or other pupilsstudent or other students, 237.16 or the property of the school; 237.17 (c) willful violation of any rule of conduct specified in 237.18 the discipline policy adopted by the board. 237.19 Subd. 3. [POLICY COMPONENTS.] The policy shall include at 237.20 least the following components: 237.21 (a) rules governingpupilstudent conduct and procedures 237.22 for informingpupilsstudents of the rules; 237.23 (b) the grounds for removal of apupilstudent from a 237.24 class; 237.25 (c) the authority of the classroom teacher to removepupils237.26 students from the classroom pursuant to procedures and rules 237.27 established in the district's policy; 237.28 (d) the procedures for removal of apupilstudent from a 237.29 class by a teacher, school administrator, or other school 237.30 district employee; 237.31 (e) the period of time for which apupilstudent may be 237.32 removed from a class, which may not exceedthreefive class 237.33 periods for a violation of a rule of conduct; 237.34 (f) provisions relating to the responsibility for and 237.35 custody of apupilstudent removed from a class; 237.36 (g) the procedures for return of apupilstudent to the 238.1 specified class from which thepupilstudent has been removed; 238.2 (h) the procedures for notifyingpupils and parents or238.3guardiansa student and the student's parents or guardian of 238.4 violations of the rules of conduct and of resulting disciplinary 238.5 actions; 238.6 (i) any procedures determined appropriate for encouraging 238.7 early involvement of parents or guardians in attempts to improve 238.8 apupil'sstudent's behavior; 238.9 (j) any procedures determined appropriate for encouraging 238.10 early detection of behavioral problems; 238.11 (k) any procedures determined appropriate for referring 238.12pupilsa student in need of special education services to those 238.13 services; 238.14 (1) the procedures for consideration of whether there is a 238.15 need for a further assessment or of whether there is a need for 238.16 a review of the adequacy of a current individual education plan 238.17 of apupilstudent with a disability who is removed from class; 238.18and238.19 (m) procedures for detecting and addressing chemical abuse 238.20 problems ofpupilsa student while on the school premises; 238.21 (n) the minimum consequences for violations of the code of 238.22 conduct; and 238.23 (o) procedures for immediate and appropriate interventions 238.24 tied to violations of the code. 238.25 Sec. 33. [127.411] [SCHOOL SITE MEDIATION BOARD.] 238.26 Subdivision 1. [BOARD ALLOWED.] A school district or 238.27 school site council may establish a school site mediation 238.28 board. The board shall consist of equal numbers of staff and 238.29 parents and, in the case of secondary schools, student 238.30 representatives. Members shall be representative of the school 238.31 community and shall be selected by a method as determined in the 238.32 district's discipline policy. 238.33 Subd. 2. [PURPOSES AND DUTIES.] The board shall mediate 238.34 issues in dispute at the school site related to the 238.35 implementation of district and school site codes of conduct 238.36 under sections 127.40 to 127.413, and the application of the 239.1 codes to a student. 239.2 Sec. 34. [127.412] [OMBUDSPERSON SERVICE.] 239.3 A school district or school site council may establish an 239.4 ombudsperson service for students, parents, and staff. The 239.5 service shall consist of an administrator, a student, a parent, 239.6 and a teacher. The school site shall notify students, parents, 239.7 and staff of the availability of the service. The service shall 239.8 provide advocacy for enforcement of the codes of conduct and the 239.9 procedures to remediate disputes related to implementation of 239.10 the code of conduct and the goals of the school in maintaining 239.11 an orderly learning environment for all students. 239.12 Sec. 35. [127.413] [NOTIFICATION.] 239.13 Representatives of the school board and the exclusive 239.14 representative of the teachers shall discuss issues related to 239.15 notification prior to placement in classrooms of students with 239.16 histories of violent behavior and any need for intervention 239.17 services or conflict resolution or training for staff in such 239.18 cases. 239.19 Sec. 36. Minnesota Statutes 1994, section 127.42, is 239.20 amended to read: 239.21 127.42 [REVIEW OF POLICY.] 239.22 The principaland the licensed employeesor other person 239.23 having general control and supervision of the school, and 239.24 representatives of parents, students, and staff in a school 239.25 building shall confer at least annually to review the discipline 239.26 policy and to assess whether the policy has been enforced. Each 239.27 school board shall conduct an annual review of the districtwide 239.28 discipline policy. 239.29 Sec. 37. [136D.93] [OTHER MEMBERSHIP AND POWERS.] 239.30 In addition to the districts listed in sections 136D.21, 239.31 136D.71, and 136D.81, the agreement of an intermediate school 239.32 district established under this chapter may provide for the 239.33 membership of other school districts and cities, counties, and 239.34 other governmental units as defined in section 471.59. In 239.35 addition to the powers listed in sections 136D.25, 136D.73, and 239.36 136D.84, an intermediate school board may provide the services 240.1 defined in section 123.582, subdivisions 7 and 8. 240.2 Sec. 38. Laws 1994, chapter 647, article 3, section 25, is 240.3 amended to read: 240.4 Sec. 25. [REPORTS OF INCIDENTS OF MISBEHAVIOR IN SCHOOLS.] 240.5 (a) For the 1994-1995 and 1995-1996 school years, each 240.6 school district shall use a standardized form or alternative 240.7 aggregate reporting format developed by the commissioner of 240.8 education to report to the commissioner all incidents of 240.9 misbehavior that result in the suspension or expulsion of 240.10 students under Minnesota Statutes, sections 127.26 to 127.39. 240.11 The standardized reporting form, which the commissioner may 240.12 coordinate with the reporting form required under Minnesota 240.13 Statutes, section 121.207, shall include the following 240.14 information: 240.15 (1) a description of each incident of misbehavior that 240.16 leads to the suspension or expulsion of the student including, 240.17 where appropriate, a description of the dangerous weapon as 240.18 defined in Minnesota Statutes, section 609.02, subdivision 6, 240.19 involved in the incident; 240.20 (2) information about the suspended or expelled student, 240.21 other than the student's name, including the student's age, 240.22 whether the student is a student of color, and the number of 240.23 times the student has been suspended or expelled previously and 240.24 for what misbehavior; 240.25 (3) whether the student has or had an individualized 240.26 learning plan (IEP) under Minnesota Statutes, section 120.17, 240.27 and, if the student has or had an IEP, whether the misbehavior 240.28 resulting in suspension or expulsion was a manifestation of the 240.29 student's disabling condition; 240.30 (4) the actions taken by school officials to respond to the 240.31 incident of misbehavior; and 240.32 (5) the duration of the suspension or expulsion. 240.33 (b) School districts shall use the standardized form or 240.34 alternative aggregate reporting format to transmit the 240.35 information described in paragraph (a) to the commissioner 240.36 biannually by February 1 and July 1, beginning February 1, 1995, 241.1 and ending July 1, 1996. The commissioner shall compile and 241.2 analyze the data and present to the education committees of the 241.3 legislature an interim report by January 1, 1996, and a final 241.4 report by February 1, 1997. 241.5 (c) Based on the data collected, the department shall make 241.6 recommendations to the legislature by March 15, 1995, for 241.7 changes in the pupil fair dismissal act. 241.8 Sec. 39. [SUCCESSOR TO ECSUS.] 241.9 Each service cooperative established under section 25 is a 241.10 continuation of the ECSU it replaces. The service cooperative 241.11 is the legal successor in all respects of the ECSU, without need 241.12 of further proceedings of any kind. The personnel of the ECSU 241.13 become personnel of the service cooperative, retaining all their 241.14 rights and benefits. All property, obligations, assets, and 241.15 liabilities of the ECSU become the property, obligations, 241.16 assets, and liabilities of the service cooperative. 241.17 Sec. 40. [SC INSURANCE POOLS.] 241.18 (a) A service cooperative shall provide all financial 241.19 information that deals with revenues and expenses on behalf of 241.20 local school districts that have pooled for insurance purposes. 241.21 (b) All service cooperative insurance advisory labor 241.22 management committees must have representation from all 241.23 exclusive representatives. The representation must be provided 241.24 by appointment by the respective exclusive representatives. 241.25 Sec. 41. [COMBINED FINANCIAL STATEMENT.] 241.26 For fiscal year 1995, independent school district Nos. 209, 241.27 Kensington; 262, Barret; 263, Elbow Lake; and 265, Hoffman, may 241.28 submit a combined audited financial statement to comply with the 241.29 requirement of Minnesota Statutes, section 121.908, subdivision 241.30 3. The individual districts must also submit separate uniform 241.31 financial accounting and reporting standards data for fiscal 241.32 year 1995, according to Minnesota Statutes, section 121.908, 241.33 subdivisions 2 and 3. 241.34 Sec. 42. [REPEALER.] 241.35 Minnesota Statutes 1994, sections 3.198; 121.93; 121.936; 241.36 and 123.58, are repealed. 242.1 Sec. 43. [EFFECTIVE DATE.] 242.2 Section 19 applies to contracts to take effect on or after 242.3 July 1, 1995. 242.4 ARTICLE 10 242.5 LIBRARIES 242.6 Section 1. Minnesota Statutes 1994, section 134.155, is 242.7 amended to read: 242.8 134.155 [LIBRARIANS OF COLOR PROGRAM.] 242.9 Subdivision 1. [DEFINITION.] For purposes of this section, 242.10 "people of color" means permanent United States residents who 242.11 are African-American, American Indian or Alaskan native, Asian 242.12 or Pacific Islander, or Hispanic. 242.13 Subd. 2. [GRANTS.] The commissioner of education, in 242.14 consultation with the multicultural advisory committee 242.15 established in section 126.82, shall award grants for 242.16 professional development programs to recruit and educate people 242.17 of color in the field of library science or information 242.18 management. Grant applicants must be a public library 242.19 jurisdiction with a growing minority population working in 242.20 collaboration with an accredited institution of higher education 242.21 with a library education program in the state of Minnesota. 242.22 Subd. 3. [PROGRAM REQUIREMENTS.] (a) A grant recipient 242.23 shall recruit people of color to belibrarianslibrary staff in 242.24 public libraries and provide support in linking program 242.25 participants with jobs in the recipient's library jurisdiction. 242.26 (b) A grant recipient shall establish an advisory council 242.27 composed of representatives of communities of color. 242.28 (c) A grant recipient, with the assistance of the advisory 242.29 council,shallmay recruit high school students, undergraduate 242.30 students,or other persons; support them through the higher 242.31 education application and admission process; advise them while 242.32 enrolled; and link them with support resources in the college or 242.33 university and the community. 242.34 (d) A grant recipient shall award stipends to people of 242.35 color enrolled inan accrediteda library education program to 242.36 help cover the costs of tuition, student fees, supplies, and 243.1 books. Stipend awards must be based upon a student's financial 243.2 need and students must apply for any additional financial aid 243.3 for which they are eligible to supplement this program. No more 243.4 than ten percent of the grant may be used for costs of 243.5 administering the program. Students must agree to work in the 243.6 grantee library jurisdiction for at least two years after 243.7 graduation if the student acquires a master's degree and at 243.8 least three years after graduation if the student acquires both 243.9 a bachelor's and a master's degree while participating in the 243.10 program. If no full-time position is available in the library 243.11 jurisdiction, the student may fulfill the work requirement in 243.12 another Minnesota public library. 243.13 (e) The commissioner of education shall consider the 243.14 following criteria in awarding grants: 243.15 (1) whether the program is likely to increase the 243.16 recruitment and retention of persons of color in librarianship; 243.17 (2) whether grant recipients will establish or have a 243.18 mentoring program for persons of color; and 243.19 (3) whether grant recipients will provide a library 243.20 internship for persons of color while participating in this 243.21 program. 243.22 Sec. 2. Minnesota Statutes 1994, section 134.34, 243.23 subdivision 4a, is amended to read: 243.24 Subd. 4a. [SUPPORT GRANTS.] In state fiscal years 1993, 243.25 1994,and1995, and 1996, a regional library basic system 243.26 support grant also may be made to a regional public library 243.27 system for a participating city or county which meets the 243.28 requirements under paragraph (a) or (b). 243.29 (a) The city or county decreases the dollar amount provided 243.30 by it for operating purposes of public library service if the 243.31 amount provided by the city or county is not less than the 243.32 amount provided by the city or county for such purposes in the 243.33 second preceding year. 243.34 (b)(1) The city or county provided for operating purposes 243.35 of public library services an amount exceeding 125 percent of 243.36 the state average percentage of the adjusted net tax capacity or 244.1 125 percent of the state average local support per capita; and 244.2 (2) the local government aid distribution for the current 244.3 calendar year under chapter 477A has been reduced below the 244.4 originally certified amount for payment in the preceding 244.5 calendar year, if the dollar amount of the reduction from the 244.6 previous calendar year in support for operating purposes of 244.7 public library services is not greater than the dollar amount by 244.8 which support for operating purposes of public library service 244.9 would be decreased if the reduction in support were in direct 244.10 proportion to the local government aid reduction as a percentage 244.11 of the previous calendar year's revenue base as defined in 244.12 section 477A.011, subdivision 27. Determination of a grant 244.13 under paragraph (b) shall be based on the most recent calendar 244.14 year for which data are available. 244.15 The city or county shall file a report with the department 244.16 of education indicating the dollar amount and percentage of 244.17 reduction in public library operating funds. 244.18 Sec. 3. Minnesota Statutes 1994, section 134.351, 244.19 subdivision 4, is amended to read: 244.20 Subd. 4. [GOVERNANCE.] (a) In any area where the 244.21 boundaries of a proposed multicounty, multitype library system 244.22 coincide with the boundaries of the regional library system or 244.23 district, the regional library system or district board shall be 244.24 designated as the governing board for the multicounty, multitype 244.25 library system. In any area where a proposed multicounty, 244.26 multitype library system encompasses more than one regional 244.27 library system or district, the governing board of the 244.28 multicounty, multitype library system shall consist of nine 244.29 members appointed by the cooperating regional library system or 244.30 district boards from their own membership in proportion to the 244.31 population served by each cooperating regional library system or 244.32 district. In each multicounty, multitype library system there 244.33 shall be established an advisory committee consisting of two 244.34 representatives of public libraries, two representatives of 244.35 school media services, one representative of special libraries, 244.36 one representative of public supported academic libraries, and 245.1 one representative of private academic libraries. The advisory 245.2 committee shall recommend needed policy to the system governing 245.3 board. 245.4 (b) Upon recommendation from its advisory committee, a 245.5 multitype library cooperation system governing board may choose 245.6 to reconstitute the governance of the multitype system by the 245.7 creation of a combined board which replaces the previous 245.8 governing board and advisory committee. A combined board shall 245.9 consist of five or seven citizens, not employed in library or 245.10 information services, and four library or information service 245.11 workers. The constituent regional public library system boards 245.12 shall select the citizen members from the at-large population of 245.13 the region. In any area where a multicounty, multitype library 245.14 system encompasses more than one regional public library system, 245.15 cooperating regional system boards shall appoint citizen members 245.16 of the combined board members in proportion to the population of 245.17 each cooperating regional system. The combined board members 245.18 who are library and information workers shall be selected, one 245.19 from each type of library: academic, public, school, and 245.20 special. Governing board members of the combined board shall 245.21 serve two-year terms for no more than three successive terms 245.22 with the members of the first combined board serving one- and 245.23 two-year terms as determined by lot with a simple majority 245.24 serving for two years. Elections shall be pursuant to the 245.25 adopted bylaws of the multitype system and may provide 245.26 additional requirements to those in this section. New combined 245.27 governing boards shall take effect at the beginning of the 245.28 fiscal year, July 1, and shall continue the authority, 245.29 ownership, and obligations of the previously constituted 245.30 multitype system in its region. 245.31 Sec. 4. [APPROPRIATIONS.] 245.32 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 245.33 indicated in this section are appropriated from the general fund 245.34 to the department of education for the fiscal years designated. 245.35 Subd. 2. [BASIC SUPPORT GRANTS.] For basic support grants 245.36 according to Minnesota Statutes, sections 134.32 to 134.35: 246.1 $7,819,000 ..... 1996 246.2 $7,819,000 ..... 1997 246.3 The 1996 appropriation includes $1,172,000 for 1995 and 246.4 $6,647,000 for 1996. 246.5 The 1997 appropriation includes $1,172,000 for 1996 and 246.6 $6,647,000 for 1997. 246.7 Subd. 3. [LIBRARIANS OF COLOR.] For the librarians of 246.8 color program according to Minnesota Statutes, section 134.155: 246.9 $55,000 ..... 1996 246.10 $55,000 ..... 1997 246.11 Any balance in the first year does not cancel but is 246.12 available in the second year. 246.13 Subd. 4. [CHILDREN'S LIBRARY SERVICES GRANTS.] For grants 246.14 for collaborative programs to strengthen library services to 246.15 children, young people, and their families: 246.16 $50,000 ..... 1996 246.17 $50,000 ..... 1997 246.18 Any balance in the first year does not cancel but is 246.19 available in the second year. 246.20 Subd. 5. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 246.21 grants according to Minnesota Statutes, sections 134.353 and 246.22 134.354, to multicounty, multitype library systems: 246.23 $527,000 ..... 1996 246.24 $527,000 ..... 1997 246.25 The 1996 appropriation includes $79,000 for 1995 and 246.26 $448,000 for 1996. 246.27 The 1997 appropriation includes $79,000 for 1996 and 246.28 $448,000 for 1997. 246.29 ARTICLE 11 246.30 STATE AGENCIES 246.31 Section 1. Minnesota Statutes 1994, section 124C.07, is 246.32 amended to read: 246.33 124C.07 [COMPREHENSIVE ARTS PLANNING PROGRAM.] 246.34 Thedepartment of educationMinnesota center for arts 246.35 education shall prescribe the form and manner of application by 246.36 one or more school districts to be designated as a site to 247.1 participate in the comprehensive arts planning program. Up to 247.2 30 sites may be selected. Thedepartment of educationcenter 247.3 shall designate sites in consultation with the Minnesota 247.4 alliance for arts in education, the Minnesota center for arts247.5education,and the Minnesota state arts board. 247.6 Sec. 2. Minnesota Statutes 1994, section 124C.08, 247.7 subdivision 2, is amended to read: 247.8 Subd. 2. [CRITERIA.] The center, in consultation with the 247.9 comprehensive arts planning program state steering committee, 247.10 shall establish criteria for site selection. Criteria shall 247.11 include at least the following: 247.12 (1) a willingness by the district or group of districts to 247.13 designate a program chair for comprehensive arts planning with 247.14 sufficient authority to implement the program; 247.15 (2) a willingness by the district or group of districts to 247.16 create a committee comprised of school district and community 247.17 people whose function is to promote comprehensive arts education 247.18 in the district; 247.19 (3) commitment on the part of committee members to 247.20 participate in training offered by the department of education; 247.21 (4) a commitment of the committee to conduct a needs 247.22 assessment of arts education; 247.23 (5) commitment by the committee to evaluate its involvement 247.24 in the program; 247.25 (6) a willingness by the district to adopt a long-range 247.26 plan for arts education in the district; 247.27(7) no previous involvement of the district in the247.28comprehensive arts planning program, unless that district has247.29joined a new group of districts;and 247.30(8)(7) location of the district or group of districts to 247.31 assure representation of urban, suburban, and rural districts 247.32 and distribution of sites throughout the state. 247.33 Sec. 3. Minnesota Statutes 1994, section 126A.01, is 247.34 amended to read: 247.35 126A.01 [ENVIRONMENTAL EDUCATION GOALS AND PLAN.] 247.36 The environmental education program described in this 248.1 chapter has these goals for the pupils and other citizens of 248.2 this state: 248.3 (a) Pupils and citizens should be able to apply informed 248.4 decision-making processes to maintain a sustainable lifestyle. 248.5 In order to do so, citizens should: 248.6 (1)tounderstand ecological systems; 248.7 (2)tounderstand the cause and effect relationship between 248.8 human attitudes and behavior and the environment; 248.9 (3)to be able to analyze, develop, and use problem-solving248.10skills to understand the decision-making process of individuals,248.11institutions, and nations regarding environmental issues;248.12(4) tobe able to evaluate alternative responses to 248.13 environmental issues before deciding on alternative courses of 248.14 action; and 248.15(5)(4)tounderstand thepotential complementary nature248.16 effects of multiple uses of the environment;. 248.17(6) to provide experiences to assist citizens to increase248.18their sensitivity and stewardship for the environment; and248.19(7) to provide the(b) Pupils and citizens shall have 248.20 access to informationcitizens needand experiences needed to 248.21 make informed decisions about actions to take on environmental 248.22 issues. 248.23 (c) For purposes of this chapter, "state plan" means 248.24 "Greenprint for Minnesota: A State Plan for Environmental 248.25 Education." 248.26 Sec. 4. Minnesota Statutes 1994, section 126A.02, 248.27 subdivision 2, is amended to read: 248.28 Subd. 2. [BOARD MEMBERS.] A 17-member environmental 248.29 education board shall advise thedirectorcommissioner of 248.30 education. The board is made up of the commissioners of the 248.31 department of natural resources; the pollution control agency; 248.32 the department of agriculture; the department of education; the 248.33 director of the office of strategic and long-range planning; the 248.34 chair of the board of water and soil resources; the executive 248.35 director of the higher education coordinating board; the 248.36 executive secretary of the board of teaching; the director of 249.1 the extension service; and eight citizen members representing 249.2 diverse interests appointed by the governor. The governor shall 249.3 appoint one citizen member from each congressional district. 249.4 The citizen members are subject to section 15.0575. Two of the 249.5 citizen members appointed by the governor must be licensed 249.6 teachers currently teaching in the K-12 system. The governor 249.7 shall annually designate a member to serve as chair for the next 249.8 year. 249.9 Sec. 5. Minnesota Statutes 1994, section 128A.02, 249.10 subdivision 1, is amended to read: 249.11 Subdivision 1. [TOMANAGEGOVERN.] The state board of 249.12 educationmust manageshall govern the state academy for the 249.13 deaf and the state academy for the blind. 249.14 Sec. 6. Minnesota Statutes 1994, section 128A.02, 249.15 subdivision 3, is amended to read: 249.16 Subd. 3. [MOST BENEFICIAL, LEAST RESTRICTIVE.] The state 249.17 board must do what is necessary to provide the most beneficial 249.18 and least restrictive program of education for each pupil at the 249.19 academies who is handicapped by visual disability orhearing249.20impairmentdeafness. 249.21 Sec. 7. Minnesota Statutes 1994, section 128A.02, is 249.22 amended by adding a subdivision to read: 249.23 Subd. 3b. [PLANNING, EVALUATION, AND REPORTING.] To the 249.24 extent required in school districts, the state board must 249.25 establish a process for the academies to include parent and 249.26 community input in the planning, evaluation, and reporting of 249.27 curriculum and pupil achievement. 249.28 Sec. 8. Minnesota Statutes 1994, section 128A.02, 249.29 subdivision 5, is amended to read: 249.30 Subd. 5. [ADVISORY COUNCILSITE COUNCILS.] The state board 249.31must havemay establish, and appoint members to,an advisory249.32council on management policies at the state academiesa site 249.33 council at each academy. The site councils shall exercise power 249.34 and authority granted by the state board. The state board must 249.35 appoint to each site council the exclusive representative's 249.36 employee designee from each exclusive representative at the 250.1 academies. 250.2 Sec. 9. Minnesota Statutes 1994, section 128A.021, is 250.3 amended to read: 250.4 128A.021 [RESOURCECENTER: HEARING AND VISUALLY250.5IMPAIREDCENTERS; DEAF OR HARD OF HEARING AND BLIND OR VISUALLY 250.6 IMPAIRED.] 250.7 Subdivision 1. [ALSO FOR MULTIPLY DISABLED.]A resource250.8centerResource centers for thehearing-impaired, visually250.9impaired, anddeaf or hard of hearing, and the blind or visually 250.10 impaired, each also serving multiply disabled pupilsis250.11established at, are transferred to thestate academies250.12 department of education. 250.13 Subd. 2. [PROGRAMS.] The resourcecentercenters must 250.14 offer summer institutes and like programs throughout the state 250.15 forhearing-impaired, visually impaireddeaf or hard of hearing, 250.16 blind or visually impaired, and multiply disabled pupils. The 250.17 resourcecentercenters must also offer workshops for teachers, 250.18 and leadership development for teachers. 250.19 A program offered through the resourcecentercenters must 250.20 promote and develop education programs offered by school 250.21 districts or other organizations. The program must assist 250.22 school districts or other organizations to develop innovative 250.23 programs. 250.24 Subd. 3. [PROGRAMS BY NONPROFITS.] The resourcecenter250.25 centers may contract to have nonprofit organizations provide 250.26 programs through the resourcecentercenters. 250.27 Subd. 4. [ADVISORYCOUNCILCOMMITTEES.]The advisory250.28council for the academies is the advisory council for the250.29resource center.The special education advisory council shall 250.30 establish an advisory committee for each resource center. The 250.31 advisory committees shall develop recommendations regarding the 250.32 resource centers. 250.33 Sec. 10. Minnesota Statutes 1994, section 128A.022, 250.34 subdivision 1, is amended to read: 250.35 Subdivision 1. [PERSONNEL.] The state board of education 250.36 may employ central administrative staff members and other 251.1 personnel necessary to provide and support programs and services 251.2inat each academy. 251.3 Sec. 11. Minnesota Statutes 1994, section 128A.022, 251.4 subdivision 6, is amended to read: 251.5 Subd. 6. [STUDENT TEACHERS AND PROFESSIONAL TRAINEES.] (a) 251.6 The state board may enter into agreements withteacher-preparing251.7 teacher preparation institutions for student teachers to get 251.8 practical experience at the academies. A licensed teacher must 251.9 provide appropriate supervision of each student teacher. 251.10 (b) The state board may enter into agreements with 251.11 accredited higher education institutions for certain student 251.12 trainees to get practical experience at the academies. The 251.13 students must be preparing themselves in a professional field 251.14 that provides special services to children with a disability in 251.15 school programs. To be a student trainee in a field, a person 251.16 must have completed at least two years of an approved program in 251.17 the field. A person who is licensed or registered in the field 251.18 must provide appropriate supervision of each student trainee. 251.19 Sec. 12. Minnesota Statutes 1994, section 128A.024, 251.20 subdivision 4, is amended to read: 251.21 Subd. 4. [EDUCATION WITH PUPILS WITHOUT A DISABILITY.] The 251.22 academies must provide opportunities for their pupils to be 251.23 educated with pupils without a disability. A pupil's 251.24 opportunities must be consistent with the pupil's individual 251.25 education plan or individual family service plan and assessment. 251.26 Sec. 13. Minnesota Statutes 1994, section 128A.025, 251.27 subdivision 1, is amended to read: 251.28 Subdivision 1. [ACADEMIES' ADMINISTRATOR.] The position of 251.29 theresidential academies'chief administrator at each academy 251.30 is in the unclassified service. 251.31 Sec. 14. Minnesota Statutes 1994, section 128A.025, 251.32 subdivision 2, is amended to read: 251.33 Subd. 2. [TEACHER STANDARDS.] A teacher or administrator 251.34 at the academies is subject to the licensure standards of the 251.35 board of teachingandor the state board of education. 251.36 Sec. 15. Minnesota Statutes 1994, section 128A.026, is 252.1 amended to read: 252.2 128A.026 [STATEBOARD RULESADOPTED PROCEDURES.] 252.3 Subdivision 1. [SUBJECTS.] Therules of thestate board of 252.4 educationauthorized in section 128A.02must establish 252.5 procedures for: 252.6 (1) admission, including short-term admission, to the 252.7 academies; 252.8 (2) discharge from the academies; 252.9 (3) decisions on a pupil's program at the academies; and 252.10 (4) evaluation of a pupil's progress at the academies. 252.11 Subd. 2. [MINIMUM CONTENT.] The discharge procedures must 252.12 include reasonable notice to the child's district of residence. 252.13 The proceduresset out in the rulesmust guarantee a pupil and 252.14 the pupil's parent or guardian appropriate safeguards. The 252.15 safeguards must include a review of the placement determination 252.16 made under sections 120.17 and 128A.05 and the right to 252.17 participate in educational program decisions. 252.18 Subd. 3. [NOT CONTESTED CASE.] A proceeding about 252.19 admission to or discharge from the academies or about a pupil's 252.20 program or progress at the academies is not a contested case 252.21 under section 14.02. The proceeding is governed instead by the 252.22 rules of the state boarddescribed in this sectiongoverning 252.23 special education. 252.24 Sec. 16. Minnesota Statutes 1994, section 128A.05, 252.25 subdivision 1, is amended to read: 252.26 Subdivision 1. [TWO KINDS.] There are two kinds of 252.27 admission to the academies. 252.28 (a) A pupil who is deafor hearing-impaired, hard of 252.29 hearing, or blind-deaf, may be admitted to the academy for the 252.30 deaf. A pupil who isvisuallyblind or visually impaired, 252.31 blind-deaf, or multiply handicapped may be admitted to the 252.32 academy for the blind. For a pupil to be admitted, two 252.33 decisions must be made under section 120.17. 252.34 (1) It must be decided by the individual education planning 252.35 team that education in regular or special education classes in 252.36 the pupil's district of residence cannot be achieved 253.1 satisfactorily because of the nature and severity of thehearing253.2 deafness orvisualblindness or visual impairment respectively. 253.3 (2) It must be decided by the individual education planning 253.4 team that the academy provides the most appropriate placement 253.5 within the least restrictive alternative for the pupil. 253.6 (b) A deaf orhearing-impairedhard of hearing child or a 253.7 visually impaired pupil may be admitted to get socialization 253.8 skills or on a short-term basis for skills development. 253.9 Sec. 17. Minnesota Statutes 1994, section 128A.05, 253.10 subdivision 2, is amended to read: 253.11 Subd. 2. [MULTIPLY HANDICAPPED.] This section does not 253.12 prevent a pupil with handicaps in addition to being 253.13 (1) deaf orhearing-impairedhard of hearing, or 253.14 (2) blind or visually impaired 253.15 from attending the academy for the deaf or the academy for the 253.16 blind, respectively. 253.17 Sec. 18. Laws 1993, chapter 224, article 8, section 21, 253.18 subdivision 1, is amended to read: 253.19 Subdivision 1. [ARTS CENTER.] The sums indicated in this 253.20 section are appropriated from the general fund to the Minnesota 253.21 center for arts education in the fiscal year designated: 253.22 $387,000 ..... 1994 253.23 $421,000 ..... 1995 253.24 Of the fiscal year 1994 appropriation, $225,000 is to fund 253.25 artist and arts organization participation in the education 253.26 residency project, $75,000 is for school support for the 253.27 residency project, and $87,000 is for further development of the 253.28 partners: arts and school for students (PASS) program, 253.29 including pilots. Of the fiscal year 1995 appropriation, 253.30 $215,000 is to fund artist and arts organizations participation 253.31 in the education residency project, $75,000 is for school 253.32 support for the residency project, and $121,000 is to fund the 253.33 PASS program, including additional pilots. The guidelines for 253.34 the education residency project and the PASS program shall be 253.35 developed and defined by the Minnesota arts board. The 253.36 Minnesota arts board shall participate in the review and 254.1 allocation process. The center for arts education shall 254.2 cooperate with the Minnesota arts board to fund these projects. 254.3 Any balance remaining in the first year does not cancel, but is 254.4 available in the second year. 254.5 Sec. 19. Laws 1992, chapter 499, article 11, section 9, as 254.6 amended by Laws 1994, chapter 647, article 5, section 17, is 254.7 amended to read: 254.8 Sec. 9. [LAND TRANSFER.] 254.9 Subdivision 1. [PERMITTED.] (a) Notwithstanding Minnesota 254.10 Statutes, chapters 94 and 103F or any other law to the contrary, 254.11 the state of Minnesota may convey the land described in 254.12 paragraph (b) to independent school district No. 656, Faribault. 254.13 (b) The land which may be conveyed under paragraph (a) is 254.14 legally described in general as follows: 254.15 All that part of the Southeast Quarter of the Southwest 254.16 Quarter (SE 1/4 of SW 1/4) and all that part of the 254.17 Southwest Quarter of the Southeast Quarter (SW 1/4 of SE 254.18 1/4), all in Section 29, Township 110 North, Range 20 West, 254.19 in the City of Faribault, Rice County, Minnesota, owned by 254.20 the state of Minnesota or any department or division 254.21 thereof. 254.22or254.23All that part of the Northwest Quarter of the Southwest254.24Quarter (NW 1/4 of SW 1/4) of Section 28, and of the254.25Northeast Quarter of the Southeast Quarter (NE 1/4 of SE254.261/4) of Section 29, all in Township 110 North, Range 20254.27West, Rice County, Minnesota, owned by the State of254.28Minnesota or any department or division thereof.254.29 (c)A more precise legal description in substantial254.30conformance with the description in paragraph (b) must be254.31provided by the grantee in the instruments of254.32conveyance.Because of the topography of the site, and the need 254.33 to relocate Parshall street, Faribault, to accommodate the 254.34 construction of a new elementary school, independent school 254.35 district No. 656, Faribault, may exchange two small parcels, 2.5 254.36 to 4.5 acres each, of the land described in paragraph (b) for 255.1 parcels of comparable value, contiguous to the land. In 255.2 addition, independent school district No. 656, Faribault, is 255.3 purchasing a parcel of about 4.7 acres immediately south of the 255.4 land described in paragraph (b). A portion of the land is to be 255.5 dedicated for the relocation of Parshall street. 255.6 (d) The state may convey the land described in paragraph 255.7 (b), without reverter, to independent school district No. 656, 255.8 Faribault, so that the land transfers may occur. Once the 255.9 transfers have occurred and there is a unified parcel for the 255.10 new elementary school, independent school district No. 656, 255.11 Faribault, shall convey the entire parcel back to the state, 255.12 and, the state shall convey this unified parcel back to 255.13 independent school district No. 656, Faribault, with the right 255.14 of reverter to the state. 255.15 (e) Both the precise legal descriptions and the instruments 255.16 of conveyance must be approved as to form by the attorney 255.17 general. 255.18 Subd. 2. [CONSIDERATION.] The consideration for the 255.19 conveyance permitted by subdivision 1 is the amount of $1. 255.20 Subd. 3. [PURPOSE.] The land permitted to be conveyed 255.21 under subdivision 1 is to be used as part of a site for an 255.22 elementary school. 255.23 Subd. 4. [TITLE REVERTS TO STATE.]If the lands described255.24in subdivision 1 areIf the unified parcel in subdivision 1, 255.25 paragraph (d), conveyed by the state to independent school 255.26 district No. 656, Faribault, is not used for a public purpose, 255.27 or upon discontinuance of such use, the title for the property 255.28 shall revert to the state. 255.29 Sec. 20. Laws 1993, chapter 224, article 12, section 32, 255.30 as amended by Laws 1993, chapter 374, section 22, is amended to 255.31 read: 255.32 Sec. 32. [REPEALER.] 255.33 (a) Minnesota Statutes 1992, sections 120.095; 120.101, 255.34 subdivision 5a; 120.75, subdivision 2; 120.80, subdivision 2; 255.35 121.11, subdivisions 6 and 13; 121.165; 121.19; 121.49; 121.883; 255.36 121.90; 121.901; 121.902; 121.904, subdivisions 5, 6, 8, 9, 10, 256.1 11a, and 11c; 121.908, subdivision 4; 121.9121, subdivisions 3 256.2 and 5; 121.931, subdivisions 6, 6a, 7, and 8; 121.934; 121.936 256.3 subdivisions 1, 2, and 3; 121.937; 121.94; 121.941; 121.942; 256.4 121.943; 123.33, subdivisions 10, 14, 15, and 16; 123.35, 256.5 subdivision 14; 123.352; 123.36, subdivisions 2, 3, 4, 4a, 6, 8, 256.6 9, and 12; 123.40, subdivisions 4 and 6; 123.61; 123.67; 256.7 123.709; 123.744; 124.615; 124.62; 124.64; 124.645; 124.67; 256.8 124.68; 124.69; 124.79; 125.12, subdivisions 3a and 4a; 125.17, 256.9 subdivisions 2a and 3a; 126.09; 126.111; 126.112; 126.20, 256.10 subdivision 4; 126.24; and 126.268, are repealed. 256.11 (b) Minnesota Statutes 1992, section 121.11, subdivision 256.12 15, is repealed. 256.13 (c) Minnesota Statutes 1992, sections 120.101, subdivision 256.14 5b; 121.11, subdivision 16; 121.585, subdivision 3; 124.19, 256.15 subdivisions 1, 1b, 6, and 7; 126.02; 126.025; 126.031; 126.06; 256.16 126.08; 126.12, subdivision 2; 126.662; 126.663; 126.664; 256.17 126.665; 126.666; 126.67; 126.68;126A.01; 126A.02;126A.04; 256.18 126A.05; 126A.07; 126A.08; 126A.09; 126A.10; 126A.11; and 256.19 126A.12, are repealed. 256.20 Sec. 21. [APPROPRIATIONS; DEPARTMENT OF EDUCATION.] 256.21 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 256.22 indicated in this section are appropriated from the general fund 256.23 to the department of education for the fiscal years designated. 256.24 Subd. 2. [DEPARTMENT.] For the department of education: 256.25 $23,150,000 ..... 1996 256.26 $21,803,000 ..... 1997 256.27 (a) Any balance in the first year does not cancel but is 256.28 available in the second year. 256.29 (b) $21,000 each year is from the trunk highway fund. 256.30 (c) $522,000 each year is for the academic excellence 256.31 foundation. 256.32 Up to $50,000 each year is contingent upon the match of $1 256.33 in the previous year from private sources consisting of either 256.34 direct monetary contributions or in-kind contributions of 256.35 related goods or services, for each $1 of the appropriation. 256.36 The commissioner of education must certify receipt of the money 257.1 or documentation for the private matching funds or in-kind 257.2 contributions. The unencumbered balance from the amount 257.3 actually appropriated from the contingent amount in 1996 does 257.4 not cancel but is available in 1997. The amount carried forward 257.5 must not be used to establish a larger annual base appropriation 257.6 for later fiscal years. 257.7 (d) $204,000 each year is for the state board of education. 257.8 (e) $227,000 each year is for the board of teaching. 257.9 (f) $775,000 each year is for educational effectiveness 257.10 programs according to Minnesota Statutes, sections 121.602 and 257.11 121.608. 257.12 (g) $60,000 each year is for contracting with the state 257.13 fire marshal to provide the services required according to 257.14 Minnesota Statutes, section 121.1502. 257.15 (h) $400,000 each year is for health and safety management 257.16 assistance contracts under Minnesota Statutes, section 124.83. 257.17 (i) The expenditures of federal grants and aids as shown in 257.18 the biennial budget document and its supplements are approved 257.19 and appropriated and shall be spent as indicated. 257.20 (j) The commissioner shall maintain no more than five total 257.21 complement in the categories of commissioner, deputy 257.22 commissioner, assistant commissioner, assistant to the 257.23 commissioner, and executive assistant. 257.24 The department of education may establish full-time, 257.25 part-time, or seasonal positions as necessary to carry out 257.26 assigned responsibilities and missions. Actual employment 257.27 levels are limited by the availability of state funds 257.28 appropriated for salaries, benefits, and agency operations or 257.29 funds available from other sources for such purposes. 257.30 (k) The department of education shall develop a performance 257.31 report on the quality of its programs and services. The report 257.32 must be consistent with the process specified in Minnesota 257.33 Statutes, sections 15.90 to 15.92. The goals, objectives, and 257.34 measures of this report must be developed in cooperation with 257.35 the chairs of the finance divisions of the education committees 257.36 of the house of representatives and senate, the department of 258.1 finance, and the office of legislative auditor. The report 258.2 prepared in 1995 must include a complete set of goals, 258.3 objectives, and measures for the department. The report 258.4 presented in 1996 and subsequent years must include data to 258.5 indicate the progress of the department in meeting its goals and 258.6 objectives. 258.7 The department of education must present a plan for a 258.8 biennial report on the quality and performance of key education 258.9 programs in Minnesota's public early childhood, elementary, 258.10 middle, and secondary education programs. To the extent 258.11 possible, the plan must be consistent with Minnesota Statutes, 258.12 sections 15.90 to 15.92. The department must consult with the 258.13 chairs of the finance divisions of the education committees of 258.14 the house of representatives and senate, the department of 258.15 finance, and the office of legislative auditor in developing 258.16 this plan. The plan for this report must be presented in 1995 258.17 and the first biennial report presented in 1996. 258.18 (l) The commissioner of education shall perform a 258.19 facilities standards evaluation of public elementary and 258.20 secondary facilities in the state. This evaluation shall 258.21 include a measure of the following: 258.22 (1) the physical condition of education facilities; 258.23 (2) the level of utilization relative to the capacity of 258.24 education facilities; 258.25 (3) the intensity of technological use in both 258.26 administrative and instructional areas in education facilities; 258.27 (4) the alignment between education programs in place and 258.28 the structure of education facilities; and 258.29 (5) an estimate of facility construction over the next 258.30 decade. 258.31 This evaluation may be based on a sample of facilities but 258.32 must include geographic breakdowns of the state. 258.33 The report shall indicate which construction and repair of 258.34 district facilities is required to bring a district into 258.35 compliance with fire safety codes, occupational safety and 258.36 health requirements, and the Americans with Disabilities Act. 259.1 The commissioner shall recommend to the 1996 legislature 259.2 standards for the review and comment process under Minnesota 259.3 Statutes, section 121.15. The standards must integrate the use 259.4 of technology, both current and potential, flexible scheduling, 259.5 and program adjustments relative to implementation of the 259.6 graduation rule. 259.7 (m) $120,000 is for a feasibility and design study to 259.8 develop a statewide student performance accountability report. 259.9 The department must identify and assess the current availability 259.10 of critical data-based information about student performance and 259.11 feasibility of using information from the existing sources, 259.12 recommend additional data-based elements and data collection 259.13 strategies that will provide for ongoing assessment of 259.14 educational reform and improvement, and recommend methods for 259.15 improving the coordination and dissemination of local 259.16 accountability reports as part of a statewide reporting system. 259.17 The study must include a statewide implementation and budget 259.18 plan. The study process must involve other government units, 259.19 school and citizen leaders, and members of higher education 259.20 concerned with the education and development of children and 259.21 youth. It must also consider ways to access the research and 259.22 development capacity of institutions of higher education in 259.23 Minnesota. The commissioner shall report the results of the 259.24 study to the education committees of the legislature and the 259.25 state board of education by February 1, 1996. 259.26 (n) $1,000,000 in fiscal year 1996 is for grants to special 259.27 school district No. 1, Minneapolis, and independent school 259.28 district No. 625, St. Paul, for after school enrichment pilot 259.29 programs targeted towards junior high and middle school 259.30 students. These programs shall be developed collaboratively 259.31 with city government, park boards, family services 259.32 collaboratives, and any other community organizations offering 259.33 similar programming. Any balance remaining in the first year 259.34 does not cancel but is available in the second year. 259.35 (o) $188,000 each year is appropriated from the special 259.36 revenue fund for the graduation rule. The department 260.1 appropriation is to be used to fund continued assessment and 260.2 standards development and piloting; to broaden public 260.3 understanding through communication; to continue development of 260.4 learning benchmarks; for ongoing statewide assessment efforts; 260.5 to develop system performance standards; and to provide 260.6 technical assistance to schools throughout the state. The 260.7 appropriation from the special revenue fund is to be used for 260.8 appropriate development efforts in health-related standards and 260.9 assessments. Any amount of this appropriation does not cancel 260.10 and shall be carried forward to the following fiscal year. 260.11 Notwithstanding any law to the contrary, the commissioner may 260.12 contract for national expertise and related services in each of 260.13 these development areas. Notwithstanding Minnesota Statutes, 260.14 section 15.53, subdivision 2, the commissioner of education may 260.15 contract with a school district for a period no longer than five 260.16 consecutive years for the services of an educator to work in the 260.17 development, implementation, or both, of the graduation rule. 260.18 The commissioner may contract for services and expertise as 260.19 necessary for development and implementation of the graduation 260.20 standards. Notwithstanding any law to the contrary, the 260.21 contracts are not subject to the contract certification 260.22 procedures of the commissioner of administration or of Minnesota 260.23 Statutes, chapter 16B, and are not subject to or included in any 260.24 spending limitations on contracts. 260.25 (p) $600,000 in 1996 and $350,000 in 1997 is for transition 260.26 aid for information support. 260.27 (q) Up to $50,000 each year is for grants to school 260.28 districts for mentorship cooperative ventures between school 260.29 districts and post-secondary teacher preparation institutions 260.30 for alternative licensure programs according to Minnesota 260.31 Statutes, section 125.188. 260.32 (r) Up to $50,000 each year is for GED coordination. 260.33 Subd. 3. [CHARTER SCHOOL EVALUATION.] For the state board 260.34 of education to evaluate the performance of charter schools 260.35 authorized according to Minnesota Statutes, section 120.064: 260.36 $75,000 ..... 1996 261.1 The state board must review and comment on the evaluation, 261.2 by the chartering school district, of the performance of a 261.3 charter school before that charter school's contract is 261.4 renewed. The state board may provide assistance to a school 261.5 district in evaluating a charter school that has been chartered 261.6 by that school board. The board must report annually to the 261.7 education committees of the legislature on the results of its 261.8 evaluations. This amount is available until June 30, 1997. 261.9 Sec. 22. [APPROPRIATIONS; MINNESOTA CENTER FOR ARTS 261.10 EDUCATION.] 261.11 The sums indicated in this section are appropriated from 261.12 the general fund to the Minnesota center for arts education for 261.13 the fiscal years designated: 261.14 $5,217,000 ..... 1996 261.15 $5,217,000 ..... 1997 261.16 Of the fiscal year 1996 appropriation, $154,000 is to fund 261.17 artist and arts organization participation in the education 261.18 residency and education technology projects, $75,000 is for 261.19 school support for the residency project, and $121,000 is for 261.20 further development of the partners: arts and school for 261.21 students (PASS) program, including pilots. Of the fiscal year 261.22 1997 appropriation, $154,000 is to fund artist and arts 261.23 organizations participation in the education residency project, 261.24 $75,000 is for school support for the residency project, and 261.25 $121,000 is to fund the PASS program, including additional 261.26 pilots. The guidelines for the education residency project and 261.27 the pass program shall be developed and defined by the Minnesota 261.28 arts board. The Minnesota arts board shall participate in the 261.29 review and allocation process. The center for arts education 261.30 shall cooperate with the Minnesota arts board to fund these 261.31 projects. 261.32 Any balance remaining in the first year does not cancel, 261.33 but is available in the second year. 261.34 The Minnesota center for arts education may establish 261.35 full-time, part-time, or seasonal positions as necessary to 261.36 carry out assigned responsibilities and missions. Actual 262.1 employment levels are limited by the availability of state funds 262.2 appropriated for salaries, benefits and agency operations or 262.3 funds available from other sources for such purposes. 262.4 In the next biennial budget, the Minnesota center for arts 262.5 education must assess its progress in meeting its established 262.6 performance measures and inform the legislature on the content 262.7 of that assessment. The information must include an assessment 262.8 of its progress by consumers and employees. 262.9 Sec. 23. [APPROPRIATIONS; FARIBAULT ACADEMIES.] 262.10 The sums indicated in this section are appropriated from 262.11 the general fund to the department of education for the 262.12 Faribault academies for the fiscal years designated: 262.13 $8,075,000 ..... 1996 262.14 $8,075,000 ..... 1997 262.15 Any balance in the first year does not cancel but is 262.16 available in the second year. 262.17 The state board of education may establish full-time, 262.18 part-time, or seasonal positions as necessary to carry out 262.19 assigned responsibilities and missions of the Faribault 262.20 academies. Actual employment levels are limited by the 262.21 availability of state funds appropriated for salaries, benefits 262.22 and agency operations or funds available from other sources for 262.23 such purposes. 262.24 In the next biennial budget, the academies must assess 262.25 their progress in meeting the established performance measures 262.26 for the Faribault academies and inform the legislature on the 262.27 content of that assessment. The information must include an 262.28 assessment of its progress by consumers and employees. 262.29 Sec. 24. [TRANSFER OF FUNDS.] 262.30 The commissioner of finance must transfer an amount agreed 262.31 on by the affected agencies from the appropriation for the 262.32 Faribault Academies to the appropriation to the department of 262.33 education that reflects the transfer of the resource centers 262.34 according to section 9. 262.35 Sec. 25. [REPEALER.] 262.36 Minnesota Statutes 1994, sections 128A.02, subdivisions 2 263.1 and 4; and 128A.03, are repealed. 263.2 Sec. 26. [EFFECTIVE DATE.] 263.3 Sections 18 and 19 are effective the day following final 263.4 enactment. 263.5 ARTICLE 12 263.6 TECHNOLOGY 263.7 Section 1. Minnesota Statutes 1994, section 16B.465, is 263.8 amended to read: 263.9 16B.465 [STATEWIDE TELECOMMUNICATIONS ACCESS ROUTING 263.10 SYSTEM.] 263.11 Subdivision 1. [CREATION.] The statewide 263.12 telecommunications access routing system provides voice, data, 263.13 video, and other telecommunications transmission services to 263.14 state agencies,; educational institutions, including public 263.15 schools as defined in section 120.05, nonpublic, church or 263.16 religious organization schools which provide instruction in 263.17 compliance with sections 120.101 to 120.102, and private 263.18 colleges,; public corporations,; and state political 263.19 subdivisions. It is not a telephone company for purposes of 263.20 chapter 237. It shall not resell or sublease any services or 263.21 facilities to nonpublic entities except it may serve 263.22 private schools and colleges. The commissioner has the 263.23 responsibility for planning, development, and operations of a 263.24 statewide telecommunications access routing system in order to 263.25 provide cost-effective telecommunications transmission services 263.26 to system users. 263.27 Subd. 2. [ADVISORY COUNCIL.] The statewide 263.28 telecommunications access and routing system is managed by the 263.29 commissioner. Subject to section 15.059, subdivisions 1 to 4, 263.30 the commissioner shall appoint an advisory council to provide 263.31 advice in implementing and operating a statewide 263.32 telecommunications access and routing system. The council shall 263.33 represent the users of STARS services and shall include 263.34 representatives of higher education, public and private schools, 263.35 state agencies, and political subdivisions. 263.36 Subd. 3. [DUTIES.] The commissioner, after consultation 264.1 with the council, shall: 264.2 (1) provide voice, data, video, and other 264.3 telecommunications transmission services to the state and to 264.4 political subdivisions through an account in the 264.5 intertechnologies revolving fund; 264.6 (2) manage vendor relationships, network function, and 264.7 capacity planning in order to be responsive to the needs of the 264.8 system users; 264.9 (3) set rates and fees for services; 264.10 (4) approve contracts relating to the system; 264.11 (5) develop the system plan, including plans for the 264.12 phasing of its implementation and maintenance of the initial 264.13 system, and the annual program and fiscal plans for the system; 264.14 and 264.15 (6) develop a plan for interconnection of the network with 264.16 private colleges and public and private schools in the state. 264.17 Subd. 4. [PROGRAM PARTICIPATION.] (a) The commissioner may 264.18 require the participation of state agencies, the state board of 264.19 education, and the governing boards of the state universities, 264.20 the community colleges, and the technical colleges, and may 264.21 request the participation of the board of regents of the 264.22 University of Minnesota, in the planning and implementation of 264.23 the network to provide interconnective technologies. The 264.24 commissioner shall establish reimbursement rates in cooperation 264.25 with the commissioner of finance to be billed to participating 264.26 agencies and educational institutions sufficient to cover the 264.27 operating, maintenance, and administrative costs of the system. 264.28 (b) A direct appropriation made to an educational 264.29 institution for usage costs associated with the STARS network 264.30 must only be used by the educational institution for payment of 264.31 usage costs of the network as billed by the commissioner of 264.32 administration. The post-secondary appropriations may be 264.33 shifted between systems as required by unanticipated usage 264.34 patterns. An intersystem transfer must be requested by the 264.35 appropriate system and may be made only after review and 264.36 approval by the commissioner of finance, in consultation with 265.1 the commissioner of administration. 265.2 Subd. 6. [REVOLVING FUND.] Money appropriated for the 265.3 statewide telecommunications access routing system and fees for 265.4 telecommunications services must be deposited in an account in 265.5 the intertechnologies revolving fund. Money in the account is 265.6 appropriated annually to the commissioner to operate 265.7 telecommunications services. 265.8 Subd. 7. [EXEMPTION.] The system is exempt from the 265.9 five-year limitation on contracts set by section 16B.07, 265.10 subdivision 2. 265.11 Sec. 2. [120.0112] [STATE GOALS FOR SYSTEMIC CHANGE USING 265.12 TECHNOLOGICAL ADVANCES.] 265.13 The general framework outcomes for technology use in 265.14 education are: 265.15 (1) all Minnesota educational institutions, libraries, and 265.16 communities will have access to local, state, and worldwide 265.17 instructional resources databases; 265.18 (2) development of policies and procedures that assure 265.19 instructional resource availability to help students 265.20 successfully achieve education excellence and state standards; 265.21 (3) databases are accessible within each district and on 265.22 the Internet; and 265.23 (4) development of policies, procedures, and systems that 265.24 stimulate and promote teacher and student curriculum and 265.25 learning collaboration. 265.26 Sec. 3. Minnesota Statutes 1994, section 124.91, 265.27 subdivision 5, is amended to read: 265.28 Subd. 5. [INTERACTIVE TELEVISION.] (a) A school district 265.29 with its central administrative office located within economic 265.30 development region one, two, three, four, five, six, seven, 265.31 eight, nine, and ten may apply to the commissioner of education 265.32 for ITV revenue up to the greater of .5 percent of the adjusted 265.33 net tax capacity of the district or $25,000 for the 265.34 construction, maintenance, and lease costs of an interactive 265.35 television system for instructional purposes. The approval by 265.36 the commissioner of education and the application procedures set 266.1 forth in subdivision 1 shall apply to the revenue in this 266.2 subdivision. In granting the approval, the commissioner must 266.3 consider whether the district is maximizing efficiency through 266.4 peak use and off-peak use pricing structures. 266.5 (b) To obtain ITV revenue, a district may levy an amount 266.6 not to exceed the district's ITV revenue times the lesser of one 266.7 or the ratio of: 266.8 (1) the quotient derived by dividing the adjusted net tax 266.9 capacity of the district for the year before the year the levy 266.10 is certified by the actual pupil units in the district for the 266.11 year to which the levy is attributable; to 266.12 (2) 100 percent of the equalizing factor as defined in 266.13 section 124A.02, subdivision 8, for the year to which the levy 266.14 is attributable. 266.15 (c) A district's ITV aid is the difference between its ITV 266.16 revenue and the ITV levy. 266.17 (d) The revenue in the first year after reorganization for 266.18 a district that has reorganized under section 122.22, 122.23, or 266.19 122.241 to 122.247 shall be the greater of: 266.20 (1) the revenue computed for the reorganized district under 266.21 paragraph (a), or 266.22 (2)(i) for two districts that reorganized, 75 percent of 266.23 the revenue computed as if the districts involved in the 266.24 reorganization were separate, or 266.25 (ii) for three or more districts that reorganized, 50 266.26 percent of the revenue computed as if the districts involved in 266.27 the reorganization were separate. 266.28 (e) The revenue in paragraph (d) is increased by the 266.29 difference between the initial revenue and ITV lease costs for 266.30 leases that had been entered into by the preexisting districts 266.31 on the effective date of the consolidation or combination and 266.32 with a term not exceeding ten years. This increased revenue is 266.33 only available for the remaining term of the lease. However, in 266.34 no case shall the revenue exceed the amount available had the 266.35 preexisting districts received revenue separately. 266.36 Sec. 4. [124C.74] [TELECOMMUNICATION ACCESS GRANT AND 267.1 STATEWIDE COORDINATION.] 267.2 Subdivision 1. [ESTABLISHMENT; PURPOSE.] The purpose of 267.3 developing a statewide school district telecommunications 267.4 network is to expand the availability of a broad range of 267.5 courses and degrees to students throughout the state, to share 267.6 information resources to improve access, quality, and 267.7 efficiency, to improve learning, and distance cooperative 267.8 learning opportunities, and to promote the exchange of ideas 267.9 among students, parents, teachers, media generalists, 267.10 librarians, and the public. In addition, through the 267.11 development of this statewide telecommunications network 267.12 emphasizing cost-effective, competitive connections, all 267.13 Minnesotans will benefit by enhancing access to 267.14 telecommunications technology throughout the state. Network 267.15 connections for school districts and public libraries will be 267.16 coordinated and fully integrated into the existing state 267.17 telecommunications and interactive television networks to 267.18 achieve comprehensive and efficient interconnectivity of school 267.19 districts and libraries to higher education institutions, state 267.20 agencies, other governmental units, agencies, and institutions 267.21 throughout Minnesota. A school district may apply to the 267.22 commissioner for a grant under subdivision 2, and a regional 267.23 public library may apply under subdivision 3. The Minnesota 267.24 education telecommunication council established in section 7 267.25 shall establish priorities for awarding grants, making grant 267.26 awards, and being responsible for the coordination of networks. 267.27 Subd. 2. [SCHOOL DISTRICT TELECOMMUNICATIONS GRANT.] (a) A 267.28 school district may apply for a grant under this subdivision 267.29 to: (1) establish connections among school districts, and 267.30 between school districts and the MNet statewide 267.31 telecommunications network administered by the department of 267.32 administration under section 16B.465; or (2) if such a 267.33 connection meeting minimum electronic connectivity standards is 267.34 already established, enhance telecommunications capacity for a 267.35 school district. The minimum standards of capacity are a 56 267.36 kilobyte data line and 768 kilobyte ITV connection, subject to 268.1 change based on the recommendations by the Minnesota education 268.2 telecommunications council. A district may submit a grant 268.3 application for interactive television with higher capacity 268.4 connections in order to maintain multiple simultaneous 268.5 connections. To ensure coordination among school districts, a 268.6 school district must submit its grant application to the council 268.7 through an organization that coordinates the applications and 268.8 connections of at least ten school districts or through an 268.9 existing technology cooperative. 268.10 (b) The application must, at a minimum, contain information 268.11 to document for each applicant school district the following: 268.12 (1) that the proposed connection meets the minimum 268.13 standards and employs an open network architecture that will 268.14 ensure interconnectivity and interoperability with other 268.15 education institutions and libraries; 268.16 (2) that the proposed connection and system will be 268.17 connected to MNet through the department of administration under 268.18 section 16B.465 and that a network service and management 268.19 agreement is in place; 268.20 (3) that the proposed connection and system will be 268.21 connected to the higher education telecommunication network and 268.22 that a governance agreement has been adopted which includes 268.23 agreements between the school district system, a higher 268.24 education regional council, libraries, and coordinating 268.25 entities; 268.26 (4) the telecommunication vendor, which may be MNet, 268.27 selected to provide service from the district to an MNet hub or 268.28 to a more cost-effective connection point to MNet; and 268.29 (5) other information, as determined by the commissioner in 268.30 consultation with the education telecommunications council, to 268.31 ensure that connections are coordinated, meet state standards 268.32 and are cost effective, and that service is provided in an 268.33 efficient and cost-effective manner. 268.34 (c) A grant applicant shall obtain a grant proposal for 268.35 network services from MNet. If MNet is not selected as the 268.36 vendor, the application must provide the reasons for choosing an 269.1 alternative vendor. A school district may include, in its grant 269.2 application, telecommunications access for collaboration with 269.3 nonprofit arts organizations for the purpose of educational 269.4 programs, or access for a secondary media center that: (1) is a 269.5 member of a multitype library system; (2) is open during periods 269.6 of the year when classroom instruction is occurring; and (3) has 269.7 licensed school media staff on site. 269.8 (d) The Minnesota education telecommunications council 269.9 shall award grants and the funds shall be dispersed by the 269.10 commissioner. The highest priority for these grants shall be to 269.11 bring school districts up to the minimum connectivity 269.12 standards. The telecommunications council shall also give 269.13 priority to grant proposals from school districts with fewer 269.14 than 1,000 students which do not have a data connection. A 269.15 grant to enhance telecommunications capacity beyond the minimum 269.16 connectivity standards shall be no more than 75 percent of the 269.17 maximum grant under this subdivision. Grant applications for 269.18 minimum connection and enhanced telecommunications capacity 269.19 grants must be submitted to the commissioner by a coordinating 269.20 organization including, but not limited to, service cooperatives 269.21 and education districts. For the purposes of this section, a 269.22 school district includes charter schools under section 120.064. 269.23 Based on the award made by the council, all grants under this 269.24 subdivision shall be paid by the commissioner directly to a 269.25 school district, (unless this application requests that the 269.26 funds be paid to the coordinating agency). 269.27 (e) Money awarded under this section may be used only for 269.28 the purposes explicitly stated in the grant application. 269.29 Subd. 3. [REGIONAL LIBRARY TELECOMMUNICATION GRANT.] (a) A 269.30 regional public library system may apply for a telecommunication 269.31 access grant. The grant must be used to create or expand the 269.32 capacity of electronic data access and connect the library 269.33 system with the MNet statewide telecommunications network 269.34 administered by the department of administration under section 269.35 16B.465. Connections must meet minimum system standards of a 56 269.36 kilobyte data line and 768 kilobyte ITV connection. To be 270.1 eligible for a telecommunications access grant, a regional 270.2 public library system must: (1) meet the level of local support 270.3 required under section 134.34; (2) be open at least 20 hours per 270.4 week; and (3) provide a local match for the grant with local 270.5 funds under section 134.46. 270.6 (b) Any grant award under this subdivision may not be used 270.7 to substitute for any existing local funds allocated to provide 270.8 electronic access, or equipment for library staff or the public, 270.9 or local funds previously dedicated to other library operations. 270.10 (c) An application for a regional public library 270.11 telecommunications access grant must, at a minimum, contain 270.12 information to document the following: 270.13 (1) that the connection meets the minimum standards and 270.14 employs an open network architecture that will ensure 270.15 interconnectivity and interoperability with other libraries and 270.16 the educational system; 270.17 (2) that the connection is being established through the 270.18 most cost-effective means and that the public library has 270.19 explored and coordinated connections through school districts or 270.20 other governmental agencies; 270.21 (3) that the proposed connection and system will be 270.22 connected to MNet through the department of administration under 270.23 section 16B.465 and that a network service and management 270.24 agreement is in place; 270.25 (4) that the proposed connection and system will be 270.26 connected to the higher education and to the school district 270.27 telecommunication networks subject to a governance agreement 270.28 with one or more school districts and a higher education 270.29 regional council specifying how the system will be coordinated; 270.30 (5) the telecommunication vendor, which may be MNet, 270.31 selected to provide service from the library to an MNet hub or 270.32 through a more cost-effective connection point to MNet; and 270.33 (6) other information, as determined by the commissioner, 270.34 to ensure that connections are coordinated, meet state 270.35 standards, are cost effective, and that service is provided in 270.36 an efficient and cost-effective manner so that libraries 271.1 throughout the state are connected in as seamless a manner as 271.2 technically possible. 271.3 (d) A grant applicant shall obtain a grant proposal for 271.4 network services from MNet. If MNet is not selected as the 271.5 vendor, the application must provide the reasons for choosing an 271.6 alternative vendor. 271.7 Subd. 4. [AWARD OF GRANTS.] The council shall develop 271.8 application forms and procedures for school district minimum 271.9 connectivity grants, enhanced telecommunications grants, and 271.10 regional library telecommunication access grants. The council 271.11 shall select the grant recipient and shall promptly notify any 271.12 applicant that is found not to be qualified. The commissioner 271.13 shall make the grant payments directly to the school district or 271.14 regional library system. At the request of the district, the 271.15 commissioner may make the grant payment directly to the 271.16 coordinating organization. If appropriations are insufficient 271.17 to fund all applications, the commissioner shall first fully 271.18 fund the minimum connectivity grants. Unsuccessful applicants 271.19 may reapply for a grant. 271.20 Sec. 5. [134.46] [REGIONAL LIBRARY TELECOMMUNICATIONS 271.21 AID.] 271.22 (a) A regional public library system may apply to the 271.23 commissioner for telecommunications aid to support data access 271.24 through regional public library systems, including access to 271.25 Internet for library staff and the public. The maximum amount 271.26 of aid for each public library shall be calculated as follows: 271.27 (1) multiply $1 times the lesser of the population of the 271.28 area served by the regional public library system, or the sum of 271.29 the populations of the participating portions of the system; and 271.30 (2) deduct an amount equal to the sum of .1 percent times 271.31 the adjusted net tax capacity for each participating city or 271.32 county for the year preceding the year the levy is certified. 271.33 (b) A regional public library must match state aid with 271.34 local funds equal to .1 percent times the adjusted net tax 271.35 capacity for each participating city or county for the year 271.36 preceding the year the levy is certified. A regional public 272.1 library that receives a telecommunications access grant under 272.2 section 124C.74 may use local funds under this section for the 272.3 grant match in the year the grant is awarded, without a 272.4 reduction in state aid. Local matching funds must be an 272.5 increase in the amount of local funds allocated to support 272.6 library operations in the year prior to the first year of the 272.7 telecommunication access grant. Local matching funds are exempt 272.8 from section 134.34. A grant award under this section may not 272.9 be used to substitute for any existing local funds allocated to 272.10 provide electronic data access or equipment for library staff or 272.11 the public, or local funds previously dedicated to other library 272.12 operations. 272.13 (c) Telecommunications aid under this section may be used 272.14 for the: 272.15 (1) construction, maintenance, and lease costs of data 272.16 access connections, including Internet connections; 272.17 (2) purchase, maintenance, professional development, and 272.18 support of computer hardware and software for data access; 272.19 (3) cost of technical support for a regional library 272.20 systems' technology investments, including technical support, 272.21 personnel, contracted services for technical support, and 272.22 training; and 272.23 (4) promotion of electronic access through public libraries 272.24 for members of the public. 272.25 (d) If appropriations are insufficient to fully fund aid 272.26 under this section, the commissioner shall prorate aid payments 272.27 to participating regional library systems. 272.28 Sec. 6. Minnesota Statutes 1994, section 237.065, is 272.29 amended to read: 272.30 237.065 [RATES FOR SPECIAL SERVICE TO SCHOOLS.] 272.31 Each telephone company, including a company that has 272.32 developed an incentive plan under section 237.625, that provides 272.33 local telephone service in a service area that includes apublic272.34 school that has classes within the range from kindergarten to 272.35 12th grade shall provide, upon request, additional service to 272.36 the school that is sufficient to ensure access to basic 273.1 telephone service from each classroom and other areas within the 273.2 school, as determined by the school board. Each company shall 273.3 set a flat rate for this additional service that is less than 273.4 the company's flat rate for an access line for a business and 273.5 the same as or greater than the company's flat rate for an 273.6 access line for a residence in the same local telephone service 273.7 exchange. When a company's flat rates for businesses and 273.8 residences are the same, the company shall use the residential 273.9 rate for service to schools under this section. The rate 273.10 required under this section is available only for a school that 273.11 installs additional service that includes access to basic 273.12 telephone service from each classroom and other areas within the 273.13 school, as determined by the school board. 273.14 Sec. 7. [MINNESOTA EDUCATION TELECOMMUNICATIONS COUNCIL.] 273.15 Subdivision 1. [STATE COUNCIL MEMBERSHIP.] The membership 273.16 of the Minnesota education telecommunications council 273.17 established in Laws 1993, First Special Session chapter 2, is 273.18 expanded to include representatives of elementary and secondary 273.19 education. The membership shall consist of three 273.20 representatives from the University of Minnesota; three 273.21 representatives of the board of trustees for Minnesota state 273.22 colleges and universities; one representative of the higher 273.23 education services offices; one representative appointed by the 273.24 private college council; eight representatives selected by the 273.25 commissioner of education, at least one of which must come from 273.26 each of the six higher education telecommunication regions; a 273.27 representative from the information policy office; one member 273.28 each from the senate and the house of representatives selected 273.29 by the subcommittee on committees of the committee on rules and 273.30 administration of the senate and the speaker of the house; and 273.31 three representatives of libraries, one representing regional 273.32 public libraries, one representing multitype libraries, and one 273.33 representing community libraries, selected by the governor. The 273.34 council shall: 273.35 (1) develop a statewide vision and plans for the use of 273.36 distance learning technologies and provide leadership in 274.1 implementing the use of such technologies; 274.2 (2) recommend to the commissioner and the legislature by 274.3 December 15, 1996, a plan for long-term governance and a 274.4 proposed structure for statewide and regional 274.5 telecommunications; 274.6 (3) recommend educational policy relating to 274.7 telecommunications; 274.8 (4) determine priorities for use; 274.9 (5) oversee coordination of networks for post-secondary 274.10 campuses, K-12 education, and regional and community libraries; 274.11 (6) review application for telecommunications access grants 274.12 under Minnesota Statutes, section 124C.74 and recommend to the 274.13 department grants for funding; and 274.14 (7) determine priorities for grant funding proposals. 274.15 The council shall consult with representatives of the 274.16 telecommunication industry in implementing this section. 274.17 Subd. 2. [DISTRICT COUNCIL MEMBERSHIP.] District 274.18 organizations that coordinate applications for telecommunication 274.19 access grants are encouraged to become members of the regional 274.20 higher education telecommunication council in their area. 274.21 Subd. 3. [CRITERIA.] In addition to responsibilities of 274.22 the council under Laws 1993, First Special Session chapter 2, as 274.23 amended, the telecommunications council shall evaluate grant 274.24 applications under Minnesota Statutes, section 124C.74 and 274.25 applications from district organizations using the following 274.26 criteria: 274.27 (1) evidence of cooperative arrangements with other 274.28 post-secondary institutions, school districts, and community and 274.29 regional libraries in the geographic region; 274.30 (2) plans for shared classes and programs; 274.31 (3) avoidance of network duplication; 274.32 (4) evidence of efficiencies to be achieved in delivery of 274.33 instruction due to use of telecommunications; 274.34 (5) a plan for development of a list of all courses 274.35 available in the region for delivery at a distance; 274.36 (6) a plan for coordinating and scheduling courses; and 275.1 (7) a plan for evaluation of costs, access, and outcomes. 275.2 Sec. 8. [INSTRUCTIONAL TRANSFORMATION THROUGH TECHNOLOGY 275.3 GRANTS.] 275.4 Subdivision 1. [ESTABLISHMENT; PURPOSE.] A grant program 275.5 is established to help school districts work together and with 275.6 higher education institutions, businesses, local government 275.7 units, libraries, and community organizations in order to 275.8 facilitate individualized learning and manage information by 275.9 employing technological advances, especially computers and 275.10 related products. Recipients shall use grant proceeds to: 275.11 (1) enhance teaching and learning productivity through the 275.12 use of technology; 275.13 (2) develop individual learner classroom-based teaching and 275.14 learning systems that can be aggregated into site, district, and 275.15 state frameworks; 275.16 (3) develop personalized learning plans designed to give 275.17 learners more responsibility for their learning success and 275.18 change the role of teacher to learning facilitator; 275.19 (4) match and allocate resources; 275.20 (5) create a curriculum environment that is multiplatform; 275.21 (6) provide user and contributor access to electronic 275.22 libraries; 275.23 (7) schedule activities; 275.24 (8) automate progress reports; 275.25 (9) increase collaboration between school districts and 275.26 sites, and with businesses, higher education institutions, 275.27 libraries, and local government units; 275.28 (10) correlate state-defined outcomes to curriculum units 275.29 for each student; 275.30 (11) increase accountability through a reporting system; 275.31 and 275.32 (12) provide technical support, project evaluation, 275.33 dissemination services, and replication. 275.34 Subd. 2. [ELIGIBILITY; APPLICATION.] A grant applicant 275.35 must be a school district or a group of school districts that 275.36 demonstrates collaboration with libraries, businesses, and 276.1 higher education institutions. Community organizations and 276.2 local government units may also be involved. The commissioner 276.3 of education shall prescribe the form and manner of 276.4 applications. The commissioner may award grants to applicants 276.5 likely to meet the outcomes in subdivision 1. The commissioner 276.6 shall ensure that business partners do not participate in more 276.7 than one grant award in each round of grants. 276.8 Subd. 3. [REPORTING.] A grant recipient shall report to 276.9 the commissioner annually at a time specified by the 276.10 commissioner on the extent to which it is meeting the outcomes 276.11 specified in subdivision 1. 276.12 Sec. 9. [TALENTED STUDENT PROGRAM NEEDS ASSESSMENT.] 276.13 The commissioner of education shall conduct a needs 276.14 assessment to determine whether the talented youth program in 276.15 south central Minnesota, or a similar program, should be 276.16 available throughout the state to serve talented junior and 276.17 senior high school students. The commissioner shall report the 276.18 findings to the education committees of the legislature by 276.19 February 1, 1996. 276.20 Sec. 10. [ELECTRONIC COST REDUCTION.] 276.21 The commissioner of education shall identify methods to 276.22 reduce the costs of Internet access for school districts. The 276.23 commissioner shall work in conjunction with MNet, the department 276.24 of administration, and the telecommunication industry to provide 276.25 Internet access and long distance phone service at a favorable 276.26 group rate. 276.27 Sec. 11. [FEDERAL MATCHING FUNDS.] 276.28 Appropriations for telecommunications access grants for 276.29 school districts and regional public library systems under 276.30 section 4 may be counted as matching funds for federal grants to 276.31 provide telecommunication access. 276.32 Sec. 12. [APPROPRIATIONS.] 276.33 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 276.34 indicated in this section are appropriated from the general fund 276.35 to the department of education for the fiscal years designated. 276.36 Subd. 2. [STATE AGENCY LIBRARIES.] For maintaining and 277.1 upgrading the online computer-based library catalog system in 277.2 state agency libraries: 277.3 $40,000 ..... 1996 277.4 $40,000 ..... 1997 277.5 Any balance in the first year does not cancel and is 277.6 available in the second year. These amounts are added to 277.7 amounts included in the appropriation for the department of 277.8 education budget that are for the same purpose. 277.9 Subd. 3. [INFORMS GRANTS.] For grants to continue the 277.10 internet access for Minnesota schools project (InforMNS): 277.11 $400,000 ..... 1996 277.12 $400,000 ..... 1997 277.13 Subd. 4. [SCIENCE-MATHEMATICS GRANT.] For continuation of 277.14 systemic change in science and mathematics education programs: 277.15 $1,322,000 ..... 1996 277.16 $1,322,000 ..... 1997 277.17 $30,000 of the appropriation in 1996 and $30,000 in 1997 is 277.18 for the south central Minnesota talented youth program. 277.19 Any balance in the first year does not cancel but is 277.20 available in the second year. 277.21 Subd. 5. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 277.22 grants to regional public libraries to support electronic data 277.23 access according to section 134.46: 277.24 $800,000 ..... 1996 277.25 This appropriation is available until June 30, 1997. 277.26 Subd. 6. [INTERACTIVE TELEVISION (ITV) AID.] For 277.27 interactive television (ITV) aid under section 124.91, 277.28 subdivision 5: 277.29 $2,573,000 ..... 1996 277.30 $3,814,000 ..... 1997 277.31 The 1996 appropriation includes $473,000 for 1995 ITV aid 277.32 and $2,100,000 for 1996 ITV aid. 277.33 The 1997 appropriation includes $370,000 for 1996 ITV aid 277.34 and $3,344,000 for 1997 ITV aid. 277.35 Subd. 7. [TELECOMMUNICATION ACCESS GRANTS.] For grants to 277.36 school districts and regional public library systems to 278.1 establish connections to MNet according to section 124C.74: 278.2 $5,500,000 ..... 1996 278.3 $5,000,000 ..... 1997 278.4 This appropriation is available until June 30, 1997. 278.5 Subd. 8. [INSTRUCTIONAL TRANSFORMATION THROUGH TECHNOLOGY 278.6 GRANTS.] For grants according to section 8: 278.7 $2,700,000 ..... 1996 278.8 $2,700,000 ..... 1997 278.9 The commissioner shall give priority to grant applicants 278.10 that match private sector contributions, involve multiple school 278.11 districts, and involve graduation rule pilot sites. 278.12 Subd. 9. [ITV GRANT; FLOODWOOD.] For a grant to 278.13 independent school district No. 698, Floodwood: 278.14 $125,000 ..... 1996 278.15 This appropriation is available until June 30, 1997. 278.16 The grant must be used to construct an interactive 278.17 television transmission line and an electronic data access line. 278.18 This appropriation is only available to the extent it is matched 278.19 by the district with local and nonlocal sources. The district 278.20 may levy up to $50,000 to provide its share of local sources. 278.21 School district No. 698, Floodwood, is not eligible for a 278.22 minimum connection grant under Minnesota Statutes, section 278.23 124C.74. 278.24 Subd. 10. [ITV GRANT; CROMWELL.] For a grant to 278.25 independent school district No. 95, Cromwell: 278.26 $125,000 ..... 1996 278.27 This appropriation is available until June 30, 1997. 278.28 The grant must be used to construct an interactive 278.29 television transmission line and an electronic data access 278.30 line. This appropriation is only available to the extent it is 278.31 matched by the district with local and nonlocal sources. The 278.32 district may levy up to $50,000 to provide its share of local 278.33 sources. School district No. 95, Cromwell, is not eligible for 278.34 a minimum connection grant under Minnesota Statutes, section 278.35 124C.74. The appropriation and levy authorized in this 278.36 subdivision are reduced by any amounts received according to 279.1 Laws 1994, chapter 647, article 6, section 41, subdivision 8. 279.2 School district No. 95, Cromwell, is not eligible for a minimum 279.3 connection grant under Minnesota Statutes, section 124C.74. 279.4 Sec. 13. [REPEALER.] 279.5 Laws 1993, First Special Session chapter 2, article 5, 279.6 section 1, is repealed. 279.7 Laws 1993, First Special Session chapter 2, article 5, 279.8 section 2, as amended by Laws 1994, chapter 532, article 2, 279.9 section 13, is repealed. 279.10 ARTICLE 13 279.11 TECHNICAL AND CONFORMING AMENDMENTS 279.12 Section 1. Minnesota Statutes 1994, section 43A.316, 279.13 subdivision 2, is amended to read: 279.14 Subd. 2. [DEFINITIONS.] For the purpose of this section, 279.15 the terms defined in this subdivision have the meaning given 279.16 them. 279.17 (a) [COMMISSIONER.] "Commissioner" means the commissioner 279.18 of employee relations. 279.19 (b) [EMPLOYEE.] "Employee" means: 279.20 (1) a person who is a public employee within the definition 279.21 of section 179A.03, subdivision 14, who is insurance eligible 279.22 and is employed by an eligible employer; 279.23 (2) an elected public official of an eligible employer who 279.24 is insurance eligible; or 279.25 (3) a person employed by a labor organization or employee 279.26 association certified as an exclusive representative of 279.27 employees of an eligible employer or by another public employer 279.28 approved by the commissioner, so long as the plan meets the 279.29 requirements of a governmental plan under United States Code, 279.30 title 29, section 1002(32). 279.31 (c) [ELIGIBLE EMPLOYER.] "Eligible employer" means: 279.32 (1) a public employer within the definition of section 279.33 179A.03, subdivision 15, that is a town, county, city, school 279.34 district as defined in section 120.02,educationalservice 279.35 cooperativeservice unitas defined in section123.58123.582, 279.36 intermediate district as defined in section 136C.02, subdivision 280.1 7, cooperative center for vocational education as defined in 280.2 section 123.351, regional management information center as 280.3 defined in section 121.935, or an education unit organized under 280.4 the joint powers action, section 471.59; or 280.5 (2) an exclusive representative of employees, as defined in 280.6 paragraph (b); or 280.7 (3) another public employer approved by the commissioner. 280.8 (d) [EXCLUSIVE REPRESENTATIVE.] "Exclusive representative" 280.9 means an exclusive representative as defined in section 179A.03, 280.10 subdivision 8. 280.11 (e) [LABOR-MANAGEMENT COMMITTEE.] "Labor-management 280.12 committee" means the committee established by subdivision 4. 280.13 (f) [PLAN.] "Plan" means the statewide public employees 280.14 insurance plan created by subdivision 3. 280.15 Sec. 2. Minnesota Statutes 1994, section 62L.08, 280.16 subdivision 7a, is amended to read: 280.17 Subd. 7a. [PARTIAL EXEMPTION; POLITICAL SUBDIVISIONS.] (a) 280.18 Health coverage provided by a political subdivision of the state 280.19 to its employees, officers, retirees, and their dependents, by 280.20 participation in group purchasing of health plan coverage by or 280.21 through an association of political subdivisions or by or 280.22 throughan educationala service cooperativeservice unit280.23 created under section123.58123.582 or by participating in a 280.24 joint self-insurance pool authorized under section 471.617, 280.25 subdivision 2, is subject to this subdivision. Coverage that is 280.26 subject to this subdivision may have separate index rates and 280.27 separate premium rates, based upon data specific to the 280.28 association, educational cooperative service unit, or pool, so 280.29 long as the rates, including the rating bands, otherwise comply 280.30 with this chapter. The association, educational cooperative 280.31 service unit, or pool is not required to offer the small 280.32 employer plans described in section 62L.05 and is not required 280.33 to comply with this chapter for employers that are not small 280.34 employers or that are not eligible for coverage through the 280.35 association, educational cooperative service unit, or pool. A 280.36 health carrier that offers a health plan only under this 281.1 subdivision need not offer that health plan to other small 281.2 employers on a guaranteed issue basis. 281.3 (b) An association, educational cooperative service unit, 281.4 or pool described in paragraph (a) may elect to be treated under 281.5 paragraph (a) by filing a notice of the election with the 281.6 commissioner of commerce no later than January 1, 1995. The 281.7 election remains in effect for three years and applies to all 281.8 health coverage provided to members of the group. It may be 281.9 renewed for subsequent three-year periods. An entity eligible 281.10 for treatment under paragraph (a) that forms after January 1, 281.11 1995, must make the election prior to provision of coverage, and 281.12 the election remains in effect until January 1, 1998, or if 281.13 filed after that date, until the next regular renewal date. 281.14 Sec. 3. Minnesota Statutes 1994, section 121.935, 281.15 subdivision 1, is amended to read: 281.16 Subdivision 1. [CREATION.] Any group of two or more 281.17 independent, special or common school districts may with the 281.18 approval of the state board pursuant to sections 121.931 and 281.19 121.936 create a regional management information center pursuant 281.20 to section123.58123.582 or 471.59 to provide computer services 281.21 to school districts. A regional management information center 281.22 shall not come into existence until the first July 1 after its 281.23 creation is approved by the state board or until it can be 281.24 accommodated by state appropriations, whichever occurs first. 281.25 Each member of the board of a center created after June 30, 281.26 1991, shall be a current member of a member school board. 281.27 Sec. 4. Minnesota Statutes 1994, section 124.223, 281.28 subdivision 8, is amended to read: 281.29 Subd. 8. [SUMMER INSTRUCTIONAL PROGRAMS.] (a) State 281.30 transportation aid is authorized for services described in 281.31 subdivisions 1 to 7, 9, and 10 when provided for pupils with a 281.32 disability in conjunction with a summer instructional program 281.33 thatmeets the requirements of section 124A.27, subdivision 9is 281.34 offered for credit or required for graduation or that provides 281.35 academic enrichment or remediation. The reserved revenue may 281.36 not be used for recreational sports, leisure activities, 282.1 entertainment, recreational activities, crafts, hobbies, or any 282.2 other classes of a similar nature. Summer programs for a pupil 282.3 with a disability shall relate to the pupil's individual 282.4 education plan. 282.5 (b) State transportation aid is authorized for services 282.6 described in subdivision 1 when provided during the summer in 282.7 conjunction with a learning year program established under 282.8 section 121.585. 282.9 Sec. 5. Minnesota Statutes 1994, section 124.574, 282.10 subdivision 7, is amended to read: 282.11 Subd. 7. A district shall not receive aid pursuant to 282.12 section124.32124.3201, 124.3202, 124.321, or 124.573 for 282.13 salaries, supplies, travel or equipment for which the district 282.14 receives aid pursuant to this section. 282.15 Sec. 6. Minnesota Statutes 1994, section 124A.02, 282.16 subdivision 16, is amended to read: 282.17 Subd. 16. [PUPIL UNITS, AFDC.]"AFDC pupil units" for282.18fiscal year 1992 means pupil units identified in section 124.17,282.19subdivision 1b.282.20 "AFDC pupil units" for fiscal year 1993 and thereafter 282.21 means pupil units identified in section 124.17, subdivision 1d. 282.22 Sec. 7. Minnesota Statutes 1994, section 124A.22, 282.23 subdivision 3, is amended to read: 282.24 Subd. 3. [COMPENSATORY EDUCATION REVENUE.] (a)For fiscal282.25year 1992, the compensatory education revenue for each district282.26equals the formula allowance times the AFDC pupil units counted282.27according to section 124.17, subdivision 1b.282.28(b)For fiscal year 1993 and thereafter, the maximum 282.29 compensatory education revenue for each district equals the 282.30 formula allowance times the AFDC pupil units computed according 282.31 to section 124.17, subdivision 1d. 282.32(c)(b) For fiscal year 1993 and thereafter, the previous 282.33 formula compensatory education revenue for each district equals 282.34 the formula allowance times the AFDC pupil units computed 282.35 according to Minnesota Statutes 1994, section 124.17, 282.36 subdivision 1b. 283.1(d)(c) For fiscal year 1993, the compensatory education 283.2 revenue for each district equals the district's previous formula 283.3 compensatory revenue plus one-fourth of the difference between 283.4 the district's maximum compensatory education revenue and the 283.5 district's previous formula compensatory education revenue. 283.6(e)(d) For fiscal year 1994, the compensatory education 283.7 revenue for each district equals the district's previous formula 283.8 compensatory education revenue plus one-half of the difference 283.9 between the district's maximum compensatory education revenue 283.10 and the district's previous formula compensatory education 283.11 revenue. 283.12(f)(e) For fiscal year 1995, the compensatory education 283.13 revenue for each district equals the district's previous formula 283.14 compensatory education revenue plus three-fourths of the 283.15 difference between the district's maximum compensatory education 283.16 revenue and the district's previous formula compensatory 283.17 education revenue. 283.18(g)(f) For fiscal year 1996 and thereafter, the 283.19 compensatory education revenue for each district equals the 283.20 district's maximum compensatory education revenue. 283.21 Sec. 8. Minnesota Statutes 1994, section 124A.225, 283.22 subdivision 2, is amended to read: 283.23 Subd. 2. [INSTRUCTOR DEFINED.] Primary instructor means a 283.24 public employee licensed by the board of teaching whose duties 283.25 are full-time instruction, excluding a teacher for whom 283.26 categorical aids are received pursuant to sections124.273 and283.27124.32124.3201, 124.3202, and 124.321. Except as provided in 283.28 section 125.230, subdivision 6, instructor does not include 283.29 supervisory and support personnel, except school social workers 283.30 as defined in section 125.03. An instructor whose duties are 283.31 less than full-time instruction must be included as an 283.32 equivalent only for the number of hours of instruction in grades 283.33 kindergarten through 6. 283.34 Sec. 9. Minnesota Statutes 1994, section 126.666, 283.35 subdivision 2, is amended to read: 283.36 Subd. 2. [CURRICULUM ADVISORY COMMITTEE.] Each school 284.1 board shall establish a curriculum advisory committee to permit 284.2 active community participation in all phases of the PER process. 284.3 The district advisory committee, to the extent possible, shall 284.4 be representative of the diversity of the community served by 284.5 the district and the learning sites within the district, and 284.6 include principals, teachers, parents, support staff, pupils, 284.7 and other community residents. The district may establish 284.8 building teams as subcommittees of the district advisory 284.9 committee. The district committee shall retain responsibility 284.10 for recommending to the school board districtwide learner 284.11 outcomes, assessments, and program evaluations. Learning sites 284.12 may establish expanded curriculum, assessments, and program 284.13 evaluations. Whenever possible, parents and other community 284.14 residents shall comprise at least two-thirds of the advisory 284.15 committee.The committee shall make recommendations to the284.16board about the programs enumerated in section 124A.27, that the284.17committee determines should be offered. The recommendations284.18shall be based on district and learning site needs and284.19priorities.284.20 ARTICLE 14 284.21 BUDGET RESERVE AND COST MANAGEMENT 284.22 Section 1. Minnesota Statutes 1994, section 16A.152, is 284.23 amended by adding a subdivision to read: 284.24 Subd. 1a. [BUDGET RESERVE.] A budget reserve account is 284.25 created in the general fund in the state treasury. The 284.26 commissioner of finance shall transfer to the budget reserve 284.27 account on July 1 of each odd-numbered year any amounts 284.28 specifically appropriated by law to the budget reserve. 284.29 Sec. 2. Minnesota Statutes 1994, section 16A.152, 284.30 subdivision 2, is amended to read: 284.31 Subd. 2. [ADDITIONAL REVENUES; PRIORITY.] If on the basis 284.32 of a forecast of general fund revenues and expenditures the 284.33 commissioner of finance determines that there will be a positive 284.34 unrestricted budgetary general fund balance at the close of the 284.35 biennium, the commissioner of finance must allocate money to the 284.36 budget reserveand cash flow accountuntil the total amount in 285.1 the accountequals five percent of total general fund285.2appropriations for the current biennium as established by the285.3most recent legislative session. Beginning July 1, 1993,285.4forecast unrestricted budgetary general fund balances are first285.5appropriated to restore the budget reserve and cash flow account285.6to $500,000,000is $220,000,000. Additional biennial 285.7 unrestricted budgetary general fund balances available after 285.8 November 1 of every odd-numbered calendar year are appropriated 285.9 in January of the following year to reduce the property tax levy 285.10 recognition percent under section 121.904, subdivision 4a, to 285.11 zero before additional money beyond$500,000,000$220,000,000 is 285.12 allocated to the budget reserveand cash flowaccount. 285.13$180,000,000 of the budget reserve and cash flow account shall285.14be dedicated to elementary and secondary education.285.15 The amounts necessary to meet the requirements of this 285.16 section are appropriated from the general fund. 285.17 Sec. 3. Minnesota Statutes 1994, section 16A.152, 285.18 subdivision 4, is amended to read: 285.19 Subd. 4. [REDUCTION.] (a) If the commissioner determines 285.20 that probable receipts for the general fund will be less than 285.21 anticipated, and that the amount available for the remainder of 285.22 the biennium will be less than needed, the commissioner shall, 285.23 with the approval of the governor, and after consulting the 285.24 legislative advisory commission, reduce the amount in the budget 285.25 reserveand cash flowaccount as needed to balance expenditures 285.26 with revenue. 285.27 (b) An additional deficit shall, with the approval of the 285.28 governor, and after consulting the legislative advisory 285.29 commission, be made up by reducing unexpended allotments of any 285.30 prior appropriation or transfer. Notwithstanding any other law 285.31 to the contrary, the commissioner is empowered to defer or 285.32 suspend prior statutorily created obligations which would 285.33 prevent effecting such reductions. 285.34 (c) If the commissioner determines that probable receipts 285.35 for any other fund, appropriation, or item will be less than 285.36 anticipated, and that the amount available for the remainder of 286.1 the term of the appropriation or for any allotment period will 286.2 be less than needed, the commissioner shall notify the agency 286.3 concerned and then reduce the amount allotted or to be allotted 286.4 so as to prevent a deficit. 286.5 (d) In reducing allotments, the commissioner may consider 286.6 other sources of revenue available to recipients of state 286.7 appropriations and may apply allotment reductions based on all 286.8 sources of revenue available. 286.9 (e) In like manner, the commissioner shall reduce 286.10 allotments to an agency by the amount of any saving that can be 286.11 made over previous spending plans through a reduction in prices 286.12 or other cause. 286.13 Sec. 4. Minnesota Statutes 1994, section 124.17, 286.14 subdivision 1, is amended to read: 286.15 Subdivision 1. [PUPIL UNIT.] Pupil units for each resident 286.16 pupil in average daily membership shall be counted according to 286.17 this subdivision. 286.18 (a) A prekindergarten pupil with a disability who is 286.19 enrolled for the entire fiscal year in a program approved by the 286.20 commissioner and has an individual education plan that requires 286.21 up to 437 hours of assessment and education services in the 286.22 fiscal year is counted as one-half of a pupil unit. If the plan 286.23 requires more than 437 hours of assessment and education 286.24 services, the pupil is counted as the ratio of the number of 286.25 hours of assessment and education service to 875, but not more 286.26 than one. 286.27 (b) A prekindergarten pupil with a disability who is 286.28 enrolled for less than the entire fiscal year in a program 286.29 approved by the commissioner is counted as the greater of: 286.30 (1) one-half times the ratio of the number of instructional 286.31 days from the date the pupil is enrolled to the date the pupil 286.32 withdraws to the number of instructional days in the school 286.33 year; or 286.34 (2) the ratio of the number of hours of assessment and 286.35 education service required in the fiscal year by the pupil's 286.36 individual education program plan to 875, but not more than one. 287.1 (c) A prekindergarten pupil who is assessed but determined 287.2 not to be handicapped is counted as the ratio of the number of 287.3 hours of assessment service to 875. 287.4 (d) A kindergarten pupil with a disability who is enrolled 287.5 in a program approved by the commissioner is counted as the 287.6 ratio of the number of hours of assessment and education 287.7 services required in the fiscal year by the pupil's individual 287.8 education program plan to 875, but not more than one. 287.9 (e) A kindergarten pupil who is not included in paragraph 287.10 (d) is counted as .515 of a pupil unit for fiscal year 1994 and 287.11 .53 of a pupil unit for fiscal year 1995 and thereafter. 287.12 (f) A pupil who is in any of grades 1 to 6 is counted as 287.13 1.03 pupil units for fiscal year 1994 and 1.06 pupil units for 287.14 fiscal year 1995 and thereafter. 287.15 (g) For fiscal year 1996 and fiscal year 1997, a pupil who 287.16 is in any of grades 7 to 12 is counted as 1.3 pupil units. For 287.17 fiscal year 1998, a pupil who is in any of grades 7 to 12 is 287.18 counted as 1.25 pupil units. For fiscal year 1999 and later 287.19 years, a pupil who is in any of grades 7 to 12 is counted as 1.2 287.20 pupil units. 287.21 (h) For fiscal year 1996 and fiscal year 1997, a pupil who 287.22 is in the post-secondary enrollment options program is counted 287.23 as 1.3 pupil units. For fiscal year 1998, a pupil who is in the 287.24 post-secondary enrollment options program is counted as 1.25 287.25 pupil units. For fiscal year 1999 and later years, a pupil who 287.26 is in the post-secondary enrollment options program is counted 287.27 as 1.2 pupil units. 287.28 (i) In fiscal year 1998, the sum of a district's general 287.29 education revenue and referendum revenue may not be reduced by 287.30 more than two percent due to the reduction in the secondary 287.31 pupil weight from 1.3 as specified in paragraphs (g) and (h). 287.32 In fiscal year 1999 and later years, the sum of a district's 287.33 general education revenue and referendum revenue may not be 287.34 decreased by more than four percent due to the reduction in the 287.35 secondary weight from 1.3 as specified in paragraphs (g) and (h). 287.36 Sec. 5. [FISCAL YEAR 1998 AND 1999 APPROPRIATIONS.] 288.1 The appropriations for the 1998-99 biennium for programs 288.2 contained in this act shall be $2,943,900,000 for fiscal year 288.3 1998 and $3,076,600,000 for fiscal year 1999, plus or minus any 288.4 adjustments due to variance in pupil forecasts, levies, or other 288.5 factors generating entitlements for the general revenue 288.6 program. These amounts shall first be allocated to fully fund 288.7 the general revenue program. Amounts remaining shall be 288.8 allocated to other programs in proportion to the fiscal year 288.9 1997 appropriations or to entitlements generated by existing law 288.10 for those programs for each year, up to the amount of the 288.11 entitlement or the fiscal year 1997 appropriations. Any amounts 288.12 remaining after allocation to these other programs shall be 288.13 maintained for allocation recommendations by the governor and 288.14 legislature in the 1997 session. 288.15 Sec. 6. [BUDGET RESERVE.] 288.16 $200,000,000 is appropriated from the general fund to the 288.17 commissioner of finance for transfer to the budget reserve 288.18 account created in Minnesota Statutes, section 16A.152. In 288.19 addition, the commissioner of finance shall transfer to the 288.20 budget reserve account on July 1, 1995, any unrestricted general 288.21 fund budgetary balance forecast for fiscal year 1997. The 288.22 transfer shall be based on the forecast unrestricted budgetary 288.23 balance at the end of the 1995 legislative session after giving 288.24 effect to all tax, revenue, and appropriation laws enacted in 288.25 the 1995 session. 288.26 ARTICLE 15 288.27 TARGETED NEEDS REVENUE 288.28 Section 1. Minnesota Statutes 1994, section 124.273, is 288.29 amended by adding a subdivision to read: 288.30 Subd. 1c. [REVENUE.] A district's limited English 288.31 proficiency programs revenue for fiscal year 1996 and later 288.32 equals the product of: 288.33 (1) the district's base revenue for limited English 288.34 proficiency programs under this section and section 124.321, 288.35 times 288.36 (2) the ratio of: 289.1 (i) the greater of 20 or the number of pupils of limited 289.2 English proficiency enrolled in the district during the current 289.3 fiscal year to 289.4 (ii) the greater of 20 or the number of pupils of limited 289.5 English proficiency enrolled in the district during fiscal year 289.6 1995. 289.7 Sec. 2. Minnesota Statutes 1994, section 124.273, is 289.8 amended by adding a subdivision to read: 289.9 Subd. 1d. [LEP BASE REVENUE.] The limited English 289.10 proficiency programs base revenue equals the sum of the 289.11 following amounts, computed using fiscal year 1995 data: 289.12 (1) 68 percent of the salaries paid limited English 289.13 proficiency program teachers; and 289.14 (2) for supplies and equipment purchased or rented for use 289.15 in the instruction of pupils of limited English proficiency an 289.16 amount equal to 47 percent of the sum actually spent by the 289.17 district but not to exceed an average of $47 in any one school 289.18 year for each pupil of limited English proficiency receiving 289.19 instruction. 289.20 Sec. 3. Minnesota Statutes 1994, section 124.273, is 289.21 amended by adding a subdivision to read: 289.22 Subd. 1e. [AID.] A district's limited English proficiency 289.23 aid for fiscal year 1996 and later equals the aid percentage 289.24 factor under section 124.3201, subdivision 1, times the 289.25 district's limited English proficiency revenue. 289.26 Sec. 4. [124.312] [TARGETED NEEDS PROGRAM REVENUE.] 289.27 Subdivision 1. [USE OF THE REVENUE.] The targeted needs 289.28 revenue under this section must be used to meet the educational 289.29 needs of learners whose progress toward meeting state or local 289.30 content or performance standards is below the level that is 289.31 appropriate for learners of their age. Any of the following may 289.32 be provided to meet these learners needs: 289.33 (1) remedial or individualized instruction in reading, 289.34 language arts, mathematics, other content areas, or study skills 289.35 to improve the achievement level of these learners; 289.36 (2) additional teachers and teacher aides to provide more 290.1 individualized instruction to these learners through individual 290.2 tutoring, lower instructor-to-learner ratios, or team teaching; 290.3 (3) flexible school day or school year programs that enable 290.4 these learners to improve their achievement or that provide 290.5 additional learning opportunities outside of the normal school 290.6 schedule; 290.7 (4) comprehensive and on-going staff development consistent 290.8 with district and site plans according to section 126.70, for 290.9 teachers, teacher aides, principals, and other personnel to 290.10 improve their ability to identify the needs of these learners 290.11 and provide appropriate remediation, intervention, 290.12 accommodations, or modifications; 290.13 (5) instructional materials and technology appropriate for 290.14 meeting the individual needs of these learners; 290.15 (6) programs established under a desegregation plan 290.16 mandated by the state board or under court order, to increase 290.17 learning opportunities and reduce the learning gap between 290.18 learners living in high concentrations of poverty and their 290.19 peers; 290.20 (7) programs to reduce truancy, encourage completion of 290.21 high school, enhance self-concept, provide health services, 290.22 provide nutrition services, provide a safe and secure learning 290.23 environment, provide coordination for learners receiving 290.24 services from other governmental agencies, provide home visiting 290.25 services, provide psychological services to determine the level 290.26 of social, emotional, cognitive, and intellectual development, 290.27 and provide counseling services, guidance services, and social 290.28 work services; 290.29 (8) bilingual programs, bicultural programs, and programs 290.30 for learners of limited English proficiency; and 290.31 (9) substantial parent involvement in developing and 290.32 implementing remedial education or intervention plans for a 290.33 learner, including learning contracts between the school, the 290.34 learner, and the parent that establish achievement goals and 290.35 responsibilities of the learner and the learner's parent or 290.36 guardian. 291.1 Subd. 2. [BUILDING ALLOCATION.] A district must consider 291.2 the concentration of children from low-income families, children 291.3 with limited English proficiency, and children with disabilities 291.4 in each school building in the district when allocating targeted 291.5 needs revenue. 291.6 Subd. 3. [SEPARATE ACCOUNT.] Targeted needs revenue shall 291.7 be maintained in a separate account to identify expenditures for 291.8 salaries and programs related to this revenue. 291.9 Subd. 4. [INTEGRATION REVENUE.] For fiscal year 1996 and 291.10 later fiscal years, integration revenue equals the sum of 291.11 integration aid and integration levy under section 124.912, 291.12 subdivision 2. 291.13 Subd. 5. [INTEGRATION AID.] For fiscal year 1996 and later 291.14 fiscal years integration aid equals the following amounts: 291.15 (1) for independent school district No. 709, Duluth, 291.16 $1,385,000; 291.17 (2) for independent school district No. 625, St. Paul, 291.18 $8,090,700; and 291.19 (3) for special school district No. 1, Minneapolis, 291.20 $9,368,300. 291.21 Sec. 5. [124.313] [TARGETED NEEDS REVENUE.] 291.22 For fiscal year 1996 and thereafter, a school district's 291.23 targeted needs revenue equals the sum of: 291.24 (1) assurance of mastery revenue according to section 291.25 124.311; plus 291.26 (2) the district's limited English proficiency revenue 291.27 computed according to section 124.273, subdivision 1d; plus 291.28 (3) integration revenue computed according to section 291.29 124.312, subdivision 4. 291.30 Sec. 6. [124.314] [TARGETED NEEDS AID AND LEVY.] 291.31 Subdivision 1. [AID.] For fiscal year 1996 and thereafter, 291.32 a school district's targeted needs aid equals the sum of its 291.33 assurance of mastery aid according to section 124.311, its 291.34 limited English proficiency aid according to section 124.273, 291.35 subdivision 1e, and its integration aid according to section 291.36 124.312, subdivision 5. 292.1 Subd. 2. [LEVY.] For fiscal year 1997 and thereafter, a 292.2 school district's targeted needs levy equals the sum of its 292.3 integration levy under section 124.912, subdivision 2, and that 292.4 portion of its special education levy attributed to the limited 292.5 English proficiency program. 292.6 Sec. 7. Minnesota Statutes 1994, section 124.32, 292.7 subdivision 7, is amended to read: 292.8 Subd. 7. [PROGRAM AND AID APPROVAL.] Before June 1 of each 292.9 year, each district providing special instruction and services 292.10 to children with a disability shall submit to the commissioner 292.11 an application for approval of these programs and their budgets 292.12 for the nextschoolfiscal year. The application shall include 292.13 an enumeration of the costs proposed as eligible for state aid 292.14 pursuant to this section and of the estimated number and grade 292.15 level of children with a disability in the district who will 292.16 receive special instruction and services during the regular 292.17 school year and in summer school programs during the nextschool292.18 fiscal year. The application shall also include any other 292.19 information deemed necessary by the commissioner for the 292.20 calculation of state aid and for the evaluation of the necessity 292.21 of the program, the necessity of the personnel to be employed in 292.22 the program, for determining the amount which the program will 292.23 receive from grants from federal funds, or special grants from 292.24 other state sources, and the program's compliance with the rules 292.25 and standards of the state board. The commissioner shall review 292.26 each application to determine whether the program and the 292.27 personnel to be employed in the program are actually necessary 292.28 and essential to meet the district's obligation to provide 292.29 special instruction and services to children with a disability 292.30 pursuant to sections 120.17 and 120.1701. The commissioner 292.31 shall not approve aid pursuant to this section for any program 292.32 or for the salary of any personnel determined to be unnecessary 292.33 or unessential on the basis of this review. The commissioner 292.34 mayalsowithhold all or any portion of the aid for programs 292.35 which receive grants from federal funds, or special grants from 292.36 other state sources. By August 31 the commissioner shall 293.1 approve, disapprove or modify each application, and notify each 293.2 applying district of the action and of the estimated amount of 293.3 aid for the programs. The commissioner shall provide procedures 293.4 for districts to submit additional applications for program and 293.5 budget approval during theschoolfiscal year, for programs 293.6 needed to meet any substantial changes in the needs of children 293.7 with a disability in the district. Notwithstanding the 293.8 provisions of section 124.15, the commissioner may modify or 293.9 withdraw the program or aid approval and withhold aid pursuant 293.10 to this section without proceeding according to section 124.15 293.11 at any time the commissioner determines that the program does 293.12 not comply with rules of the state board or that any facts 293.13 concerning the program or its budget differ from the facts in 293.14 the district's approved application. 293.15 Sec. 8. Minnesota Statutes 1994, section 124.32, 293.16 subdivision 10, is amended to read: 293.17 Subd. 10. [SUMMER SCHOOL.]The state shall pay aid for293.18summer school programs for children with a disability on the293.19basis of subdivisions 1b, 1d, and 5 for the current school293.20year. The state shall also pay to the Minnesota state academy293.21for the deaf or the Minnesota state academy for the blind a part293.22of the salary of each instructional aide assigned to a child293.23attending the academy, if that aide is required by the child's293.24individual education plan.By March 15 of each year, districts 293.25 shall submit separate applications for program and budget 293.26 approval for summer school programs. The review of these 293.27 applications shall be as provided in subdivision 7. By May 1 of 293.28 each year, the commissioner shall approve, disapprove or modify 293.29 the applications and notify the districts of the action and of 293.30 the estimated amount of aid for the summer school programs. 293.31 Sec. 9. Minnesota Statutes 1994, section 124.32, 293.32 subdivision 12, is amended to read: 293.33 Subd. 12. [ALLOCATION FROM COOPERATIVE CENTERS, 293.34 EDUCATIONAL COOPERATIVE SERVICE UNITS, EDUCATION DISTRICTS, AND 293.35 INTERMEDIATE DISTRICTS.] For purposes of this section, a special 293.36 education cooperative, service cooperative, education district, 294.1 or an intermediate district shall allocate its approved 294.2 expenditures for special education programs among participating 294.3 school districts. Special education aid for services provided 294.4 by a cooperative, service cooperative, education district, or 294.5 intermediate district shall be paid to the participating school 294.6 districts. 294.7 Sec. 10. [124.3201] [SPECIAL EDUCATION REVENUE.] 294.8 Subdivision 1. [DEFINITIONS] For the purposes of this 294.9 section and sections 124.3202 and 124.321, the definitions in 294.10 this subdivision apply. 294.11 (a) "Base year" for fiscal year 1996 means fiscal year 1995. 294.12 Base year for later fiscal years means the second fiscal year 294.13 preceding the fiscal year for which aid will be paid. 294.14 (b) "Basic revenue" has the meaning given it in section 294.15 124A.22, subdivision 2. For the purposes of computing basic 294.16 revenue pursuant to this section, each child with a disability 294.17 shall be counted as prescribed in section 124.17, subdivision 1. 294.18 (c) "Essential personnel" means teachers, related services, 294.19 and support services staff providing direct services to students. 294.20 (d) "Average daily membership" has the meaning given it in 294.21 section 124.17. 294.22 (e) "Program growth factor" means 1.00 for fiscal year 1998 294.23 and later. 294.24 (f) "Aid percentage factor" means 60 percent for fiscal 294.25 year 1996, 70 percent for fiscal year 1997, 80 percent for 294.26 fiscal year 1998, 90 percent for fiscal year 1999, and 100 294.27 percent for fiscal years 2000 and later. 294.28 (g) "Levy percentage factor" means 100 minus the aid 294.29 percentage factor for that year. 294.30 Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] The special 294.31 education base revenue equals the sum of the following amounts 294.32 computed using base year data: 294.33 (1) 68 percent of the salary of each essential person 294.34 employed in the district's program for children with a 294.35 disability during the regular school year, whether the person is 294.36 employed by one or more districts; 295.1 (2) for the Minnesota state academy for the deaf or the 295.2 Minnesota state academy for the blind, 68 percent of the salary 295.3 of each instructional aide assigned to a child attending the 295.4 academy, if that aide is required by the child's individual 295.5 education plan; 295.6 (3) for special instruction and services provided to any 295.7 pupil by contracting with public, private, or voluntary agencies 295.8 other than school districts, in place of special instruction and 295.9 services provided by the district, 52 percent of the difference 295.10 between the amount of the contract and the basic revenue of the 295.11 district for that pupil for the fraction of the school day the 295.12 pupil receives services under the contract; 295.13 (4) for special instruction and services provided to any 295.14 pupil by contracting for services with public, private, or 295.15 voluntary agencies other than school districts, that are 295.16 supplementary to a full educational program provided by the 295.17 school district, 52 percent of the amount of the contract for 295.18 that pupil; 295.19 (5) for supplies and equipment purchased or rented for use 295.20 in the instruction of children with a disability an amount equal 295.21 to 47 percent of the sum actually expended by the district but 295.22 not to exceed an average of $47 in any one school year for each 295.23 child with a disability receiving instruction; and 295.24 (6) for fiscal years 1997 and later, special education base 295.25 revenue shall include amounts under clauses (1) to (5) for 295.26 special education summer programs provided during that fiscal 295.27 year. 295.28 Subd. 3. [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For 295.29 fiscal year 1996 and later, a district's adjusted special 295.30 education base revenue equals the district's special education 295.31 base revenue times the ratio of the district's average daily 295.32 membership for the current school year to the district's average 295.33 daily membership for the base year. 295.34 Subd. 4. [STATE TOTAL SPECIAL EDUCATION REVENUE.] The 295.35 state total special education revenue for fiscal year 1996 295.36 equals $327,846,000. The state total special education revenue 296.1 for fiscal year 1997 equals $347,810,000. The state total 296.2 special education revenue for later fiscal years equals: 296.3 (1) the state total special education revenue for the 296.4 preceding fiscal year; times 296.5 (2) the program growth factor; times 296.6 (3) the ratio of the state total average daily membership 296.7 for the current fiscal year to the state total average daily 296.8 membership for the preceding fiscal year. 296.9 Subd. 5. [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] A 296.10 school district's special education revenue for fiscal year 1996 296.11 and later equals the state total special education revenue times 296.12 the ratio of the district's adjusted special education base 296.13 revenue to the state total adjusted special education base 296.14 revenue. If the state board of education modifies its rules for 296.15 special education in a manner that increases a school district's 296.16 special education obligations or service requirements, the 296.17 commissioner of education shall annually increase each 296.18 district's special education revenue by the amount necessary to 296.19 compensate for the increased service requirements. The 296.20 additional revenue equals the cost in the current year 296.21 attributable to rule changes not reflected in the computation of 296.22 special education base revenue, multiplied by the appropriate 296.23 percentages from subdivision 2. 296.24 Subd. 6. [SPECIAL EDUCATION AID.] A school district's 296.25 special education aid for fiscal year 1996 and later equals the 296.26 district's special education revenue times the aid percentage 296.27 factor for that year. 296.28 Subd. 7. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 296.29 INTERMEDIATES.] For the purposes of this section and section 296.30 124.321, a special education cooperative or an intermediate 296.31 district shall allocate its approved expenditures for special 296.32 education programs among participating school districts. 296.33 Sec. 11. [124.3202] [SPECIAL EDUCATION SUMMER PROGRAM 296.34 REVENUE.] 296.35 Subdivision 1. [SUMMER PROGRAM BASE REVENUE.] The summer 296.36 program base revenue for fiscal year 1996 equals the sum of the 297.1 following amounts computed using base year data: 297.2 (1) 68 percent of the summer program salary of each 297.3 essential person employed in the district's program for children 297.4 with a disability, whether the person is employed by one or more 297.5 districts; 297.6 (2) for the Minnesota state academy for the deaf or the 297.7 Minnesota state academy for the blind, 68 percent of the summer 297.8 program salary of each instructional aide assigned to a child 297.9 attending the academy, if that aide is required by the child's 297.10 individual education plan; 297.11 (3) for special instruction and services provided to any 297.12 pupil by contracting with public, private, or voluntary agencies 297.13 other than school districts, in place of special instruction and 297.14 services provided by the district, 52 percent of the difference 297.15 between the amount of the contract for the summer program and 297.16 the basic revenue of the district for that pupil for the 297.17 fraction of the school day the pupil receives services under the 297.18 contract; and 297.19 (4) for special instruction and services provided to any 297.20 pupil by contracting for services with public, private, or 297.21 voluntary agencies other than school districts, that are 297.22 supplementary to a full educational program provided by the 297.23 school district, 52 percent of the amount of the summer program 297.24 contract for that pupil. 297.25 Subd. 2. [ADJUSTED SUMMER PROGRAM BASE REVENUE.] For 297.26 fiscal year 1996 and later, a district's adjusted summer program 297.27 base revenue equals the district's summer program base revenue 297.28 times the ratio of the district's average daily membership for 297.29 the current school year to the district's average daily 297.30 membership for the base year. 297.31 Subd. 3. [STATE TOTAL SUMMER PROGRAM REVENUE.] The state 297.32 total summer program revenue for fiscal year 1996 equals 297.33 $7,152,000. 297.34 Subd. 4. [SCHOOL DISTRICT SUMMER PROGRAM REVENUE.] A 297.35 school district's summer program revenue for fiscal year 1996 297.36 equals the state total summer program revenue times the ratio of 298.1 the district's adjusted summer program base revenue to the state 298.2 total adjusted summer program base revenue. 298.3 Subd. 5. [SPECIAL EDUCATION SUMMER PROGRAM AID.] A school 298.4 district's special education summer program aid for fiscal year 298.5 1996 equals the district's summer program revenue times the aid 298.6 percentage factor for that year. 298.7 Subd. 6. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 298.8 INTERMEDIATES.] For the purposes of this section and section 298.9 124.321, a special education cooperative or an intermediate 298.10 district shall allocate its approved expenditures for special 298.11 education programs among participating school districts. 298.12 Special education summer program aid for services provided by a 298.13 cooperative or intermediate district shall be paid to the 298.14 participating school districts. 298.15 Sec. 12. Minnesota Statutes 1994, section 124.321, 298.16 subdivision 1, is amended to read: 298.17 Subdivision 1. [LEVY EQUALIZATION REVENUE.] (a) For fiscal 298.18 years 1996 and later, special education levy equalization 298.19 revenue for a school district, excluding an intermediate school 298.20 district, equals the sum of the following amounts: 298.21(1) 68 percent of the salaries paid to essential personnel298.22in that district minus the amount of state aid and any federal298.23aid, if applicable, paid to that district for salaries of these298.24essential personnel under section 124.32, subdivisions 1b and298.2510, for the year to which the levy is attributable, plus298.26(2) 68 percent of the salaries paid to essential personnel298.27in that district minus the amount of state aid and any federal298.28aid, if applicable, paid to that district for salaries of those298.29essential personnel under section 124.574, subdivision 2b, for298.30the year to which the levy is attributable, plus298.31(3) 68 percent of the salaries paid to limited English298.32proficiency program teachers in that district minus the amount298.33of state aid and any federal aid, if applicable, paid to that298.34district for salaries of these teachers under section 124.273,298.35subdivision 1b, for the year to which the levy is attributable,298.36plus299.1(4) the alternative delivery levy revenue determined299.2according to section 124.322, subdivision 4, plus299.3(5) the amount allocated to the district by special299.4education cooperatives or intermediate districts in which it299.5participates according to subdivision 2.299.6A district that receives alternative delivery levy revenue299.7according to section 124.322, subdivision 4, shall not receive299.8levy equalization revenue under clause (1) or subdivision 2,299.9clause (1), for the same fiscal year.299.10 (1) the levy percentage factor for that year times the 299.11 district's special education revenue under section 124.3201; 299.12 plus 299.13 (2) the levy percentage factor for that year times the 299.14 district's special education summer program revenue under 299.15 section 124.3202; plus 299.16 (3) the levy percentage factor for that year times the 299.17 district's special education excess cost revenue under section 299.18 124.323; plus 299.19 (4) the levy percentage factor for that year times the 299.20 district's secondary vocational education for children with a 299.21 disability revenue under section 124.574; plus 299.22 (5) the levy percentage factor for that year times the 299.23 district's limited English proficiency programs revenue under 299.24 section 124.273. 299.25 Sec. 13. Minnesota Statutes 1994, section 124.321, 299.26 subdivision 2, is amended to read: 299.27 Subd. 2. [REVENUE ALLOCATION FROMCOOPERATIVES AND299.28INTERMEDIATE DISTRICTSSTATE ACADEMIES.] (a)For purposes of299.29this section, a special education cooperative or an intermediate299.30district shall allocate to participating school districts the299.31sum of the following amounts:299.32(1) 68 percent of the salaries paid to essential personnel299.33in that cooperative or intermediate district minus the amount of299.34state aid and any federal aid, if applicable, paid to that299.35cooperative or intermediate district for salaries of these299.36essential personnel under section 124.32, subdivisions 1b and300.110, for the year to which the levy is attributable, plus300.2(2) 68 percent of the salaries paid to essential personnel300.3in that district minus the amount of state aid and any federal300.4aid, if applicable, paid to that district for salaries of those300.5essential personnel under section 124.574, subdivision 2b, for300.6the year to which the levy is attributable, plus300.7(3) 68 percent of the salaries paid to limited English300.8proficiency program teachers in that cooperative or intermediate300.9district minus the amount of state aid and any federal aid, if300.10applicable, paid to that cooperative or intermediate district300.11for salaries of these teachers under section 124.273,300.12subdivision 1b, for the year to which the levy is attributable.300.13(b) A special education cooperative or an intermediate300.14district that allocates amounts to participating school300.15districts under this subdivision must report the amounts300.16allocated to the department of education.300.17(c)For purposes of thissubdivisionsection, the Minnesota 300.18 state academy for the deaf or the Minnesota state academy for 300.19 the blind each year shall allocate an amount equal to68 percent300.20of salaries paid to instructional aides in either academy minus300.21the amount of state aid and any federal aid, if applicable, paid300.22to either academy for salaries of these instructional aides300.23under sections 124.32, subdivisions 1b and 10,the levy 300.24 percentage factor for that year times their special education 300.25 revenue under section 124.3201 and their special education 300.26 summer program revenue under section 124.3202 for the year to 300.27 each school district that assigns a child with an individual 300.28 education plan requiring an instructional aide to attend either 300.29 academy. The school districts that assign a child who requires 300.30 an instructional aide may make a levy in the amount of the costs 300.31 allocated to them by either academy. 300.32(d)(b) When the Minnesota state academy for the deaf or 300.33 the Minnesota state academy for the blind allocatesunreimbursed300.34portions of salaries of instructional aidesrevenue among school 300.35 districts that assign a child who requires an instructional 300.36 aide, for purposes of the districts making a levy under this 301.1 subdivision, the academy shall provide information to the 301.2 department of education on the amount ofunreimbursed costs of301.3salariesrevenue it allocated to the school districts that 301.4 assign a child who requires an instructional aide. 301.5 Sec. 14. Minnesota Statutes 1994, section 124.322, is 301.6 amended to read: 301.7 124.322 [ALTERNATIVE DELIVERY BASE REVENUE ADJUSTMENT.] 301.8 Subdivision 1. [ELIGIBILITY.] A district is eligible 301.9 for an alternative delivery base revenue adjustment if the 301.10 commissioner of education has approved the application of the 301.11 district according to section 120.173. 301.12 Subd. 1a. [DEFINITIONSBASE REVENUE ADJUSTMENT.]In this301.13section, the definitions in this subdivision apply.301.14(a) "Base revenue" means the following:301.15(1) for the first fiscal year after approval of the301.16district's application, base revenue means the sum of the301.17district's revenue for the preceding fiscal year for its special301.18education program under sections 124.32, subdivisions 1b, 1d, 2,301.195, and 10, and 124.321, subdivision 1;301.20(2) for the second fiscal year after approval of a301.21district's application, base revenue means the sum of the301.22district's revenue for the second prior fiscal year for its301.23special education program under sections 124.32, subdivisions301.241b, 1d, 2, 5, and 10, and 124.321, subdivision 1; and301.25(3)For the third fiscal year after approval of a 301.26 district's application, and thereafter, the special education 301.27 base revenue under section 124.3201, subdivision 1, and the 301.28 summer program base revenuemeans the sum of the revenue a301.29district would have been entitled to in the second prior fiscal301.30year for its special education program under sections 124.32,301.31subdivisions 1b, 1d, 2, 5, and 10, and 124.321, subdivision301.321,under section 124.3202, subdivision 1, shall be computed 301.33 based on activities defined as reimbursable under state board 301.34 rules for special education and nonspecial education students, 301.35 and additional activities as detailed and approved by the 301.36 commissioner of education. 302.1(b) "Base aid" means the following:302.2(1) for the first fiscal year after approval of a302.3district's application, base aid means the sum of the district's302.4gross aid for the preceding fiscal year for its special302.5education program under section 124.32, subdivisions 1b, 1d, 2,302.65, and 10;302.7(2) for the second fiscal year after approval of a302.8district's application, base aid means the sum of the district's302.9gross aid for the second prior fiscal year for its special302.10education program under section 124.32, subdivisions 1b, 1d, 2,302.115, and 10; and302.12(3) for the third fiscal year after approval of a302.13district's application and thereafter, base aid means the sum of302.14the gross aid the district would have been entitled to in the302.15second prior fiscal year for its special education program under302.16section 124.32, subdivisions 1b, 1d, 2, 5, and 10, based on302.17activities defined as reimbursable under state board of302.18education rules for special education and nonspecial education302.19students, and additional activities as detailed and approved by302.20the commissioner of education in the application plan.302.21(c) Notwithstanding paragraphs (a) and (b), base revenue302.22and base aid for 1995 and later fiscal years must not include302.23revenue and aid under section 124.32, subdivision 5.302.24(d) "Alternative delivery revenue inflator" means:302.25(1) for the first fiscal year after approval of a302.26district's application, the greater of 1.017 or the ratio of (i)302.27the statewide average special education revenue under sections302.28124.32 and 124.321 per pupil in average daily membership for the302.29current fiscal year, to (ii) the statewide average special302.30education revenue per pupil in average daily membership for the302.31previous fiscal year.302.32(2) for the second and later fiscal years, the greater of302.331.034 or the ratio of (i) the statewide average special302.34education revenue under sections 124.32 and 124.321 per pupil in302.35average daily membership for the current fiscal year, to (ii)302.36the statewide average special education revenue per pupil in303.1average daily membership for the second prior fiscal year.303.2(e) The commissioner of education shall adjust each303.3district's base revenue and base aid to reflect any changes in303.4special education services required by rule or statute.303.5Subd. 2. [AMOUNT OF ALTERNATIVE DELIVERY REVENUE.] For the303.6first fiscal year after approval of an application, a district's303.7alternative delivery revenue equals its base revenue multiplied303.8by the product of the alternative delivery revenue inflator303.9times the ratio of the district's average daily membership for303.10the current fiscal year to the district's average daily303.11membership for the immediately preceding fiscal year. For the303.12second and later fiscal years a district's alternative delivery303.13revenue equals its base revenue multiplied by the product of the303.14alternative delivery revenue inflator times the ratio of the303.15district's average daily membership for the current fiscal year303.16to the district's average daily membership for the second303.17preceding fiscal year.303.18Subd. 3. [ALTERNATIVE DELIVERY AID.] For the first fiscal303.19year after approval of an application, a district's alternative303.20delivery aid equals its base aid multiplied by the product of303.211.017 times the ratio of the district's average daily membership303.22for the current fiscal year to the district's average daily303.23membership for the preceding fiscal year. For the second and303.24later fiscal years a district's alternative delivery aid equals303.25its base aid multiplied by the product of 1.034 times the ratio303.26of the district's average daily membership for the current303.27fiscal year to the district's average daily membership for the303.28second preceding fiscal year. A district that receives aid303.29under this subdivision shall not receive aid under section303.30124.32, subdivisions 1b, 1d, 2, 5, and 10, for the same fiscal303.31year.303.32Subd. 4. [ALTERNATIVE DELIVERY LEVY REVENUE.] A district303.33shall receive alternative delivery levy revenue equal to the303.34difference between the alternative delivery revenue and the303.35alternative delivery aid. If the alternative delivery aid for a303.36district is prorated, the alternative delivery levy revenue304.1shall be increased by the amount not paid by the state due to304.2proration. The alternative delivery levy revenue shall be304.3included under section 124.321, subdivision 1, for purposes of304.4computing the special education levy under section 124.321,304.5subdivision 3, and the special education levy equalization aid304.6under section 124.321, subdivision 4.304.7 Subd. 5. [USE OF REVENUE.] Revenue underthis section304.8 sections 124.3201 and 124.3202 shall be used to implement the 304.9 approved program. 304.10 Sec. 15. Minnesota Statutes 1994, section 124.323, 304.11 subdivision 1, is amended to read: 304.12 Subdivision 1. [DEFINITIONS.] In this section, the 304.13 definitions in this subdivision apply. 304.14 (a) "Unreimbursed special education cost" means the sum of 304.15 the following: 304.16 (1) expenditures for teachers' salaries, contracted 304.17 services, supplies, and equipment eligible for revenue under 304.18 sections124.32, subdivisions 1b, 1d, 2, and 10, and 124.322,304.19subdivision 2124.3201, 124.3202, and 124.321; plus 304.20 (2) expenditures for tuition bills received under section 304.21 120.17; minus 304.22 (3) revenue for teachers' salaries, contracted services, 304.23 supplies, and equipment under sections124.32, subdivisions 1b,304.241d, 2, and 10; 124.321, subdivision 1, clause (1); and 124.322,304.25subdivision 2124.3201, 124.3202, and 124.321; minus 304.26 (4) tuition receipts under section 120.17. 304.27 (b) "General revenue," for fiscal year 1996, means the sum 304.28 of the general education revenue according to section 124A.22, 304.29 subdivision 1, plus the total referendum revenue according to 304.30 section 124A.03, subdivision 1e. For fiscal years 1997 and 304.31 later, "general revenue" means the sum of the general education 304.32 revenue according to section 124A.22, subdivision 1, plus the 304.33 total referendum revenue minus transportation sparsity revenue 304.34 minus total operating capital revenue. 304.35 Sec. 16. Minnesota Statutes 1994, section 124.323, 304.36 subdivision 2, is amended to read: 305.1 Subd. 2. [EXCESS COSTAIDREVENUE.] For19951996 and 305.2 later fiscal years, a district's special education excess 305.3 costaidrevenue equals the product of: 305.4 (1) 70 percent of the difference between (i) the district's 305.5 unreimbursed special education cost per actual pupil unit and 305.6 (ii) six percent for fiscal year 1996 and 5.7 percent for fiscal 305.7 year 1997 and later years of the district's general revenue per 305.8 actual pupil unit, times 305.9 (2) the district's actual pupil units for that year. 305.10 Sec. 17. Minnesota Statutes 1994, section 124.323, is 305.11 amended by adding a subdivision to read: 305.12 Subd. 3. [EXCESS COST AID.] For 1996 and later fiscal 305.13 years, a district's special education excess cost aid equals the 305.14 district's special education excess cost revenue times the aid 305.15 percentage factor for that year. 305.16 Sec. 18. Minnesota Statutes 1994, section 124.574, is 305.17 amended by adding a subdivision to read: 305.18 Subd. 2c. [DEFINITIONS.] For the purposes of this section 305.19 and section 124.321, the definitions in this subdivision apply. 305.20 (a) "Base year" for fiscal year 1996 means fiscal year 1995. 305.21 Base year for later fiscal years means the second fiscal year 305.22 preceding the fiscal year for which aid will be paid. 305.23 (b) "Basic revenue" has the meaning given it in section 305.24 124A.22, subdivision 2. For the purposes of computing basic 305.25 revenue pursuant to this section, each child with a disability 305.26 shall be counted as prescribed in section 124.17, subdivision 1. 305.27 (c) "Average daily membership" has the meaning given it in 305.28 section 124.17. 305.29 (d) "Program growth factor" means 1.00 for fiscal year 1998 305.30 and later. 305.31 (e) "Aid percentage factor" means 60 percent for fiscal 305.32 year 1996, 70 percent for fiscal year 1997, 80 percent for 305.33 fiscal year 1998, 90 percent for fiscal year 1999, and 100 305.34 percent for fiscal year 2000 and later. 305.35 Sec. 19. Minnesota Statutes 1994, section 124.574, is 305.36 amended by adding a subdivision to read: 306.1 Subd. 2d. [BASE REVENUE.] The secondary vocational 306.2 disabled program base revenue equals the sum of the following 306.3 amounts computed using base year data: 306.4 (1) 68 percent of the salary of each essential licensed 306.5 person who provides direct instructional services to students 306.6 employed during that fiscal year for services rendered in that 306.7 district's secondary vocational education programs for children 306.8 with a disability; 306.9 (2) 47 percent of the costs of necessary equipment for 306.10 secondary vocational education programs for children with a 306.11 disability; 306.12 (3) 47 percent of the costs of necessary travel between 306.13 instructional sites by secondary vocational education teachers 306.14 of children with a disability but not including travel to and 306.15 from local, regional, district, state, or national vocational 306.16 student organization meetings; 306.17 (4) 47 percent of the costs of necessary supplies for 306.18 secondary vocational education programs for children with a 306.19 disability but not to exceed an average of $47 in any one school 306.20 year for each child with a disability receiving these services; 306.21 (5) for secondary vocational education programs for 306.22 children with disabilities provided by a contract approved by 306.23 the commissioner with public, private, or voluntary agencies 306.24 other than a Minnesota school district or cooperative center, in 306.25 place of programs provided by the district, 52 percent of the 306.26 difference between the amount of the contract and the basic 306.27 revenue of the district for that pupil for the fraction of the 306.28 school day the pupil receives services under the contract; 306.29 (6) for secondary vocational education programs for 306.30 children with disabilities provided by a contract approved by 306.31 the commissioner with public, private, or voluntary agencies 306.32 other than a Minnesota school district or cooperative center, 306.33 that are supplementary to a full educational program provided by 306.34 the school district, 52 percent of the amount of the contract; 306.35 and 306.36 (7) for a contract approved by the commissioner with 307.1 another Minnesota school district or cooperative center for 307.2 vocational evaluation services for children with a disability 307.3 for children that are not yet enrolled in grade 12, 52 percent 307.4 of the amount of the contract. 307.5 Sec. 20. Minnesota Statutes 1994, section 124.574, is 307.6 amended by adding a subdivision to read: 307.7 Subd. 2e. [ADJUSTED SECONDARY VOCATIONAL-DISABLED BASE 307.8 REVENUE.] For fiscal year 1996 and later, a district's adjusted 307.9 secondary vocational-disabled base revenue equals the district's 307.10 secondary vocational-disabled base revenue times the ratio of 307.11 the district's average daily membership for the current school 307.12 year to the district's average daily membership for the base 307.13 year. 307.14 Sec. 21. Minnesota Statutes 1994, section 124.574, is 307.15 amended by adding a subdivision to read: 307.16 Subd. 2f. [STATE TOTAL SECONDARY VOCATIONAL-DISABLED 307.17 REVENUE.] The state total secondary vocational-disabled revenue 307.18 for fiscal year 1996 equals $7,645,000. The state total 307.19 secondary vocational-disabled revenue for fiscal year 1997 307.20 equals $7,960,000. The state total secondary 307.21 vocational-disabled revenue for later fiscal years equals: 307.22 (1) the state total secondary vocational-disabled revenue 307.23 for the preceding fiscal year; times 307.24 (2) the program growth factor; times 307.25 (3) the ratio of the state total average daily membership 307.26 for the current fiscal year to the state total average daily 307.27 membership for the preceding fiscal year. 307.28 Sec. 22. Minnesota Statutes 1994, section 124.574, is 307.29 amended by adding a subdivision to read: 307.30 Subd. 2g. [SCHOOL DISTRICT SECONDARY VOCATIONAL-DISABLED 307.31 REVENUE.] A school district's secondary vocational-disabled 307.32 revenue for fiscal year 1996 and later equals the state total 307.33 secondary vocational-disabled revenue times the ratio of the 307.34 district's adjusted secondary vocational-disabled base revenue 307.35 to the state total adjusted secondary vocational-disabled base 307.36 revenue. 308.1 Sec. 23. Minnesota Statutes 1994, section 124.574, is 308.2 amended by adding a subdivision to read: 308.3 Subd. 2h. [SCHOOL DISTRICT SECONDARY VOCATIONAL-DISABLED 308.4 AID.] A school district's secondary vocational-disabled aid for 308.5 fiscal year 1996 and later equals the district's secondary 308.6 vocational-disabled revenue times the aid percentage factor for 308.7 that year. 308.8 Sec. 24. Minnesota Statutes 1994, section 124.574, 308.9 subdivision 9, is amended to read: 308.10 Subd. 9. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 308.11 INTERMEDIATE DISTRICTS.] For purposes of this section and 308.12 section 124.321, a cooperative center or an intermediate 308.13 district shall allocate its approved expenditures for secondary 308.14 vocational programs for children with a disability among 308.15 participating school districts. Aid for secondary vocational 308.16 programs for children with a disability for services provided by 308.17 a cooperative or intermediate district shall be paid to the 308.18 participating school districts. 308.19 Sec. 25. [HOMESTEAD AND AGRICULTURAL CREDIT ADJUSTMENT.] 308.20 (a) For the computation of homestead and agricultural aid 308.21 for taxes payable in 1996, the commissioner of revenue shall 308.22 reduce a school district's homestead and agricultural aid by an 308.23 amount equal to the lesser of: (1) 25 percent of the amount of 308.24 the district's homestead and agricultural aid for calendar year 308.25 1995; or (2) an amount equal to one percent times the district's 308.26 adjusted net tax capacity for assessment year 1994. 308.27 (b) Prior to the computation of homestead and agricultural 308.28 aid for taxes payable in 1997, the commissioner of revenue shall 308.29 reduce the school district's homestead and agricultural aid by 308.30 an amount equal to the lesser of: (1) 50 percent of the amount 308.31 of the district's homestead and agricultural aid for calendar 308.32 year 1995; or (2) an amount equal to one percent times the 308.33 district's adjusted net tax capacity for assessment year 1994. 308.34 (c) Prior to the computation of homestead and agricultural 308.35 aid for taxes payable in 1998, the commissioner of revenue shall 308.36 reduce a school district's homestead and agricultural aid by an 309.1 amount equal to the lesser of: (1) 75 percent of the amount of 309.2 the district's homestead and agricultural aid for calendar year 309.3 1995; or (2) an amount equal to one percent times the district's 309.4 adjusted net tax capacity for assessment year 1994. 309.5 (d) Prior to the computation of homestead and agricultural 309.6 aid for taxes payable in 1999, the commissioner of revenue shall 309.7 reduce a school district's homestead and agricultural aid by an 309.8 amount equal to the lesser of: (1) the amount of the district's 309.9 homestead and agricultural aid for calendar year 1995; or (2) an 309.10 amount equal to one percent times the district's adjusted net 309.11 tax capacity for assessment year 1994. 309.12 (e) Prior to the computation of homestead and agricultural 309.13 aid for taxes payable in 2000 and later years, the commissioner 309.14 of revenue shall reduce a school district's homestead and 309.15 agricultural aid by an amount equal to the lesser of: (1) any 309.16 remaining amount of the district's homestead and agricultural 309.17 aid; or (2) an amount equal to one percent times the district's 309.18 adjusted net tax capacity for assessment year 1994. 309.19 Sec. 26. [APPROPRIATIONS.] 309.20 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 309.21 indicated in this section are appropriated from the general fund 309.22 or other named fund to the department of education for the 309.23 fiscal years designated. 309.24 Subd. 2. [SPECIAL EDUCATION AID.] For special education 309.25 aid according to Minnesota Statutes, section 124.32: 309.26 $195,432,000 ..... 1996 309.27 $236,453,000 ..... 1997 309.28 The 1996 appropriation includes $28,230,000 for 1995 and 309.29 $206,947,000 for 1996. 309.30 The 1997 appropriation includes $29,506,000 for 1996 and 309.31 $206,947,000 for 1997. 309.32 Subd. 3. [SPECIAL PUPIL AID.] For special education aid 309.33 according to Minnesota Statutes, section 124.32, subdivision 6, 309.34 for pupils with handicaps placed in residential facilities 309.35 within the district boundaries for whom no district of residence 309.36 can be determined: 310.1 $470,000 ..... 1996 310.2 $479,000 ..... 1997 310.3 If the appropriation for either year is insufficient, the 310.4 appropriation for the other year is available. If the 310.5 appropriations for both years are insufficient, the 310.6 appropriation for special education aid may be used to meet the 310.7 special pupil obligations. 310.8 Subd. 4. [SUMMER SPECIAL EDUCATION AID.] For special 310.9 education summer program aid according to Minnesota Statutes, 310.10 section 124.32, subdivision 10: 310.11 $4,310,000 ..... 1996 310.12 $2,610,000 ..... 1997 310.13 The 1996 appropriation is for 1995 summer programs. 310.14 The 1997 appropriation is for 1996 summer programs provided 310.15 in fiscal year 1996. 310.16 Subd. 5. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 310.17 teacher travel for home-based services according to Minnesota 310.18 Statutes, section 124.32, subdivision 2b: 310.19 $77,000 ..... 1996 310.20 $80,000 ..... 1997 310.21 The 1996 appropriation includes $11,000 for 1995 and 310.22 $66,000 for 1996. 310.23 The 1997 appropriation includes $11,000 for 1996 and 310.24 $69,000 for 1997. 310.25 Subd. 6. [SPECIAL EDUCATION EXCESS COST AID.] For excess 310.26 cost aid: 310.27 $6,297,000 ..... 1996 310.28 $12,196,000 ..... 1997 310.29 The 1996 appropriation includes $760,000 for 1995 and 310.30 $5,537,000 for 1996. 310.31 The 1997 appropriation includes $976,000 for 1996 and 310.32 $11,220,000 for 1997. 310.33 Subd. 7. [TARGETED NEEDS AID.] For targeted needs aid: 310.34 $37,682,000 ..... 1996 310.35 $41,597,000 ..... 1997 310.36 (a) Of the 1996 amount, $945,000 is for 1995 LEP aid and 311.1 $4,359,000 is for 1996 LEP aid. Of the 1996 amount, $1,979,000 311.2 is for 1995 AOM aid and $11,555,000 is for 1996 AOM aid. Of the 311.3 1996 amount, $18,844,000 is for 1996 integration aid. 311.4 (b) Of the 1997 amount, $1,089,000 is for 1996 LEP aid and 311.5 $7,913,000 is for 1997 LEP aid. Of the 1997 amount, $2,039,000 311.6 is for 1996 AOM aid and $11,712,000 is for 1997 AOM aid. Of the 311.7 1997 amount, $18,844,000 is for 1997 integration aid. 311.8 (c) As a condition of receiving a grant, each district must 311.9 continue to report its costs according to the uniform financial 311.10 accounting and reporting system. As a further condition of 311.11 receiving a grant, each district must submit a report to the 311.12 chairs of the education committees of the legislature about the 311.13 actual expenditures it made for integration using the grant 311.14 money including achievement results. These grants may be used to 311.15 transport students attending a nonresident district under 311.16 Minnesota Statutes, section 120.062, to the border of the 311.17 resident district. A district may allocate a part of the grant 311.18 to the transportation fund for this purpose. 311.19 Subd. 8. [SECONDARY VOCATIONAL; STUDENTS WITH 311.20 DISABILITIES.] For aid for secondary vocational education for 311.21 pupils with disabilities according to Minnesota Statutes, 311.22 section 124.574: 311.23 $4,489,000 ..... 1996 311.24 $5,424,000 ..... 1997 311.25 The 1996 appropriation includes $590,000 for 1995 and 311.26 $3,899,000 for 1996. 311.27 The 1997 appropriation includes $688,000 for 1996 and 311.28 $4,736,000 for 1997. 311.29 Subd. 9. [SPECIAL PROGRAMS EQUALIZATION AID.] For special 311.30 education levy equalization aid according to Minnesota Statutes, 311.31 section 124.321: 311.32 $24,525,000 ..... 1996 311.33 $19,030,000 ..... 1997 311.34 The 1996 appropriation includes $2,584,000 for 1995 and 311.35 $21,941,000 for 1996. 311.36 The 1997 appropriation includes $3,872,000 for 1996 and 312.1 $15,158,000 for 1997. 312.2 Subd. 10. [LOW-INCOME CONCENTRATION GRANTS.] For 312.3 low-income concentration grants according to Laws 1994, chapter 312.4 647, article 8, section 43: 312.5 $1,150,000 ..... 1996 312.6 $1,150,000 ..... 1997 312.7 Sec. 27. [REPEALER.] 312.8 Minnesota Statutes 1994, sections 124.273, subdivisions 1b 312.9 and 2c; 124.32, subdivisions 1b, 1c, 1d, 1f, 2, and 3a; and 312.10 124.574, subdivisions 2b, 3, 4, and 4a, are repealed. 312.11 ARTICLE 16 312.12 DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING 312.13 Section 1. [119A.01] [ABOLISHMENT; ESTABLISHMENT; PURPOSE; 312.14 AND GOALS.] 312.15 Subdivision 1. [ABOLISHMENT.] The position of commissioner 312.16 of education and the department of education are abolished. The 312.17 employees of the department of education are transferred to the 312.18 department of children, families, and learning under section 312.19 15.039, subdivision 7. 312.20 Subd. 2. [ESTABLISHMENT.] The department of children, 312.21 families, and learning is established. 312.22 Subd. 3. [PURPOSE.] The purpose in creating the department 312.23 is to increase the capacity of Minnesota communities to 312.24 measurably improve the well-being of children and families by: 312.25 (1) coordinating and integrating state funded and locally 312.26 administered family and children programs; 312.27 (2) improving flexibility in the design, funding, and 312.28 delivery of programs affecting children and families; 312.29 (3) providing greater focus on strategies designed to 312.30 prevent problems affecting the well-being of children and 312.31 families; 312.32 (4) enhancing local decision making, collaboration, and the 312.33 development of new governance models; 312.34 (5) improving public accountability through the provision 312.35 of research, information, and the development of measurable 312.36 program outcomes; 313.1 (6) increasing the capacity of communities to respond to 313.2 the whole child by improving the ability of families to gain 313.3 access to services; 313.4 (7) encouraging all members of a community to nurture all 313.5 the children in the community; and 313.6 (8) supporting parents in their dual roles as breadwinners 313.7 and parents. 313.8 Sec. 2. [119A.02] [DEFINITIONS.] 313.9 Subdivision 1. [APPLICATION.] The definitions in this 313.10 section apply to this chapter. 313.11 Subd. 2. [COMMISSIONER.] "Commissioner" means the 313.12 commissioner of children, families, and learning. 313.13 Subd. 3. [DEPARTMENT.] "Department" means the department 313.14 of children, families, and learning. 313.15 Subd. 4. [LOCAL GRANTEE.] "Local grantee" means a local 313.16 unit of government or an agency or organization that receives 313.17 funds under section 119A.04. 313.18 Sec. 3. [119A.03] [COMMISSIONER.] 313.19 Subdivision 1. [GENERAL.] The department is under the 313.20 administrative control of the commissioner. The commissioner is 313.21 appointed by the governor with the advice and consent of the 313.22 senate. The commissioner must possess broad knowledge and 313.23 experience in strengthening children and families. The 313.24 commissioner has the general powers as provided in section 313.25 15.06, subdivision 6. 313.26 The commissioner's salary must be established according to 313.27 the procedure in section 15A.081, subdivision 1, in the same 313.28 range as that specified for the commissioner of finance. 313.29 Subd. 2. [DUTIES OF THE COMMISSIONER.] The commissioner 313.30 shall: 313.31 (1) identify measurable outcomes by which programs 313.32 administered by the department will be evaluated at the state 313.33 and local level; 313.34 (2) develop linkages with other state departments to ensure 313.35 coordination and consistent state policies promoting healthy 313.36 development of children and families; 314.1 (3) prepare, in consultation with the children's cabinet, 314.2 the commission on children, youth, and their families, and 314.3 affected parties, prior to January 1, 1996, and prior to July 1 314.4 of each year thereafter, guidelines governing planning, 314.5 reporting, and other procedural requirements necessary to 314.6 administer this chapter; 314.7 (4) facilitate inclusive processes when designing or 314.8 implementing guidelines and strategies to achieve agency goals 314.9 for children and families listed in section 119A.01, subdivision 314.10 3; 314.11 (5) facilitate intergovernmental and public-private 314.12 partnership strategies necessary to implement this chapter; 314.13 (6) submit to the federal government, or provide assistance 314.14 to local governments and organizations in submitting, where 314.15 appropriate and feasible, requests for federal waivers or 314.16 recommendations for changes in federal law necessary to carry 314.17 out the purposes of this chapter; 314.18 (7) coordinate review of all plans and other documents 314.19 required under the guidelines provided for in clause (3); 314.20 (8) coordinate development of the management support system 314.21 components required for implementation of this chapter; 314.22 (9) review other programs serving children and families to 314.23 determine the feasibility for transfer to the department of 314.24 children, families, and learning or the feasibility of inclusion 314.25 in the funding consolidation process; and 314.26 (10) monitor local compliance with this chapter. 314.27 Sec. 4. [119A.04] [TRANSFERS FROM OTHER AGENCIES.] 314.28 Subdivision 1. [DEPARTMENT OF HUMAN SERVICES.] The powers 314.29 and duties of the department of human services with respect to 314.30 the following programs are transferred to the department of 314.31 children, families, and learning under section 15.039. The 314.32 programs needing federal approval to transfer shall be 314.33 transferred when the federal government grants transfer 314.34 authority to the commissioner: 314.35 (1) children's trust fund under sections 257.80 to 257.807; 314.36 (2) the family services and community-based collaboratives 315.1 under section 121.8355; 315.2 (3) the early childhood care and education council under 315.3 section 256H.195; 315.4 (4) the child care programs under sections 256H.01 to 315.5 256H.19; 315.6 (5) the migrant child care program under section 256.01; 315.7 (6) the child care resource and referral program under 315.8 sections 256H.196 and 256H.20; and 315.9 (7) the child care service development program under 315.10 sections 256H.21 to 256H.24. 315.11 Subd. 2. [DEPARTMENT OF ECONOMIC SECURITY.] The powers and 315.12 duties of the department of economic security with respect to 315.13 the following programs are transferred to the department of 315.14 children, families, and learning under section 15.039 on July 1, 315.15 1997: (1) the Head Start program, including Project 315.16 Cornerstone, under sections 268.912 to 268.916; and (2) 315.17 community action agency programs and financial assistance under 315.18 sections 268.52 and 268.54. 315.19 Subd. 3. [OFFICE OF STRATEGIC AND LONG-RANGE PLANNING.] 315.20 The powers and duties of the office of strategic and long-range 315.21 planning with respect to the following programs are transferred 315.22 to the department of children, families, and learning under 315.23 section 15.039. The programs needing federal approval to 315.24 transfer shall be transferred when the federal government grants 315.25 transfer authority to the commissioner: 315.26 (1) the information redesign project under section 4A.01; 315.27 (2) the action for children activity under section 4A.01; 315.28 (3) the teen pregnancy prevention program under section 315.29 4A.01; and 315.30 (4) the Minnesota children's initiative project under 315.31 section 4A.01. 315.32 Subd. 4. [DEPARTMENT OF CORRECTIONS.] The powers and 315.33 duties with respect to the following program is transferred to 315.34 the department of children, families, and learning under section 315.35 15.039: child abuse and child victims services under chapter 315.36 611A. 316.1 Subd. 5. [DEPARTMENT OF PUBLIC SAFETY.] The powers and 316.2 duties with respect to the following program is transferred to 316.3 the department of children, families, and learning under section 316.4 15.039: drug policy and violence prevention and the community 316.5 advisory violence prevention councils under sections 299A.29 to 316.6 299A.37 and 299A.40. 316.7 Subd. 6. [FUNDING FOR TRANSFERRED PROGRAMS.] State 316.8 appropriations for programs transferred under this section may 316.9 not be used to replace appropriations for K-12 programs. 316.10 Sec. 5. [119A.05] [FUNDING CONSOLIDATION.] 316.11 Subdivision 1. [AUTHORITY FOR FUNDING CONSOLIDATION.] 316.12 Notwithstanding existing law governing allocation of funds by 316.13 local grantees, mode of service delivery, grantee planning and 316.14 reporting requirements, and other procedural requirements for 316.15 the grant programs identified in this section, a local grantee 316.16 may elect to consolidate all or a portion of funding received 316.17 from the programs under subdivision 5 in a collaboration funding 316.18 plan, if all conditions specified in this section are 316.19 satisfied. County boards, school boards, or governing boards of 316.20 other grantees may elect not to consolidate funding for a 316.21 program. 316.22 For grantees electing consolidation, the commissioner may, 316.23 with the approval of the board of government innovation and 316.24 cooperation, waive all provisions of rules inconsistent with the 316.25 intent of this section. This waiver authority does not apply to 316.26 rules governing client protections, due process, or inclusion of 316.27 clients, parents, cultures, and ethnicities in decision making. 316.28 Funding to a local grantee must be determined according to the 316.29 funding formulas or allocation rules governing the individual 316.30 programs listed in section 119A.04. 316.31 Subd. 2. [ACCOUNT.] A consolidated funding account is 316.32 established under the control of the commissioner of children, 316.33 families, and learning. The purpose of this account is to 316.34 clearly identify and provide accountability for funds previously 316.35 distributed to local grantees through the individual categorical 316.36 grant programs in subdivision 5. By direction of the 317.1 commissioner, after consultation with the partnership planning 317.2 team and, upon a finding that the conditions specified in this 317.3 section have been satisfied, funds must be transmitted to this 317.4 account and allocated to local grantees by the commissioner. 317.5 Subd. 3. [ELIGIBILITY; ACCOUNTABILITY.] To be eligible to 317.6 receive funding for local consolidation, as provided for in this 317.7 section, a grantee must meet the following requirements: 317.8 (1) demonstrate participation by counties and schools in a 317.9 local collaborative process as defined in section 121.8355 or in 317.10 a similar process of collaboration with other local governments 317.11 and community organizations which satisfies the governance and 317.12 planning guidelines published by the commissioner as provided 317.13 for in this section; 317.14 (2) document consultation by counties and schools with 317.15 community action agencies and other community groups; 317.16 (3) complete and document, according to guidelines 317.17 published by the commissioner, a collaborative planning process 317.18 which clearly identifies: 317.19 (i) allocation of resources in the collaboration annual 317.20 funding plan; 317.21 (ii) a description of the governance structure for the 317.22 execution of the funding plan; 317.23 (iii) outcomes consistent with the statewide goals 317.24 identified in this chapter and in statutes governing previous 317.25 categorical funding included in the collaboration funding plan; 317.26 and 317.27 (iv) indicators sufficient to measure improvement or 317.28 decline in specified outcomes compared to baseline performance; 317.29 (4) conduct a public hearing on the funding consolidation 317.30 plan under section 471.705; 317.31 (5) agree to periodically report information concerning 317.32 progress in addressing outcomes, as provided for in guidelines 317.33 to be published by the commissioner; and 317.34 (6) execute a written agreement between the commissioner 317.35 and the local grantees setting forth responsibilities, 317.36 obligations, and conditions consistent with this section. The 318.1 agreement must state that the funds that are being locally 318.2 consolidated will be used collectively only to achieve the 318.3 objectives of the separate programs being locally consolidated. 318.4 Subd. 4. [GEOGRAPHIC AREA.] The geographic area for a 318.5 local consolidated funding process must be an entire county, a 318.6 multicounty area, or, with the approval of the county board and 318.7 commissioner, a subcounty area, if county funds are used. The 318.8 process may provide for coordination of service delivery in 318.9 jurisdictions that extend across county boundaries. 318.10 Subd. 5. [PROGRAMS INCLUDED.] Grant programs transferred 318.11 to the department of children, families, and learning in section 318.12 119A.04 and programs transferred from the abolished department 318.13 of education are eligible for local funding consolidation. 318.14 Eligibility of any federally funded programs for local funding 318.15 consolidation is conditioned upon obtaining necessary federal 318.16 waivers or changes in federal law. 318.17 Subd. 6. [ENTRY INTO PROGRAM.] Grantees who meet all 318.18 requirements of this section may elect to begin using funding 318.19 for a local consolidated funding process beginning January 1, 318.20 1996, or at each six-month interval. Other local grantees that 318.21 meet all requirements of this section may elect to begin using 318.22 funding for a local consolidation funding process beginning July 318.23 1, 1996, or at each six-month interval. 318.24 Subd. 7. [SANCTIONS.] If the commissioner finds that a 318.25 grantee has failed to comply with this section, the grantee 318.26 becomes subject to all requirements of individual grant programs 318.27 as specified in statutes and rules. 318.28 Sec. 6. Minnesota Statutes 1994, section 256F.13, 318.29 subdivision 1, is amended to read: 318.30 Subdivision 1. [FEDERAL REVENUE ENHANCEMENT.] (a) [DUTIES 318.31 OF THE COMMISSIONER OF HUMAN SERVICES.] The commissioner of 318.32 human services may enter into an agreement with one or more 318.33 family services collaboratives to enhance federal reimbursement 318.34 under Title IV-E of the Social Security Act and federal 318.35 administrative reimbursement under Title XIX of the Social 318.36 Security Act. The commissioner may contract with the department 319.1 of children, families, and learning for purposes of transferring 319.2 the federal reimbursement to the commissioner of children, 319.3 families, and learning to be distributed to the collaboratives 319.4 according to clause (2). The commissioner shall have the 319.5 following authority and responsibilities regarding family 319.6 services collaboratives: 319.7 (1) the commissioner shall submit amendments to state plans 319.8 and seek waivers as necessary to implement the provisions of 319.9 this section; 319.10 (2) the commissioner shall pay the federal reimbursement 319.11 earned under this subdivision to each collaborative based on 319.12 their earnings. Notwithstanding section 256.025, subdivision 2, 319.13 payments to collaboratives for expenditures under this 319.14 subdivision will only be made of federal earnings from services 319.15 provided by the collaborative; 319.16 (3) the commissioner shall review expenditures of family 319.17 services collaboratives using reports specified in the agreement 319.18 with the collaborative to ensure that the base level of 319.19 expenditures is continued and new federal reimbursement is used 319.20 to expand education, social, health, or health-related services 319.21 to young children and their families; 319.22 (4) the commissioner may reduce, suspend, or eliminate a 319.23 family services collaborative's obligations to continue the base 319.24 level of expenditures or expansion of services if the 319.25 commissioner determines that one or more of the following 319.26 conditions apply: 319.27 (i) imposition of levy limits that significantly reduce 319.28 available funds for social, health, or health-related services 319.29 to families and children; 319.30 (ii) reduction in the net tax capacity of the taxable 319.31 property eligible to be taxed by the lead county or 319.32 subcontractor that significantly reduces available funds for 319.33 education, social, health, or health-related services to 319.34 families and children; 319.35 (iii) reduction in the number of children under age 19 in 319.36 the county, collaborative service delivery area, subcontractor's 320.1 district, or catchment area when compared to the number in the 320.2 base year using the most recent data provided by the state 320.3 demographer's office; or 320.4 (iv) termination of the federal revenue earned under the 320.5 family services collaborative agreement; 320.6 (5) the commissioner shall not use the federal 320.7 reimbursement earned under this subdivision in determining the 320.8 allocation or distribution of other funds to counties or 320.9 collaboratives; 320.10 (6) the commissioner may suspend, reduce, or terminate the 320.11 federal reimbursement to a provider that does not meet the 320.12 reporting or other requirements of this subdivision; 320.13 (7) the commissioner shall recover from the family services 320.14 collaborative any federal fiscal disallowances or sanctions for 320.15 audit exceptions directly attributable to the family services 320.16 collaborative's actions in the integrated fund, or the 320.17 proportional share if federal fiscal disallowances or sanctions 320.18 are based on a statewide random sample; and 320.19 (8) the commissioner shall establish criteria for the 320.20 family services collaborative for the accounting and financial 320.21 management system that will support claims for federal 320.22 reimbursement. 320.23 (b) [FAMILY SERVICES COLLABORATIVE RESPONSIBILITIES.] The 320.24 family services collaborative shall have the following authority 320.25 and responsibilities regarding federal revenue enhancement: 320.26 (1) the family services collaborative shall be the party 320.27 with which the commissioner contracts. A lead county shall be 320.28 designated as the fiscal agency for reporting, claiming, and 320.29 receiving payments; 320.30 (2) the family services collaboratives may enter into 320.31 subcontracts with other counties, school districts, special 320.32 education cooperatives, municipalities, and other public and 320.33 nonprofit entities for purposes of identifying and claiming 320.34 eligible expenditures to enhance federal reimbursement, or to 320.35 expand education, social, health, or health-related services to 320.36 families and children; 321.1 (3) the family services collaborative must continue the 321.2 base level of expenditures for education, social, health, or 321.3 health-related services to families and children from any state, 321.4 county, federal, or other public or private funding source 321.5 which, in the absence of the new federal reimbursement earned 321.6 under this subdivision, would have been available for those 321.7 services, except as provided in subdivision 1, paragraph (a), 321.8 clause (4). The base year for purposes of this subdivision 321.9 shall be the four-quarter calendar year ending at least two 321.10 calendar quarters before the first calendar quarter in which the 321.11 new federal reimbursement is earned; 321.12 (4) the family services collaborative must use all new 321.13 federal reimbursement resulting from federal revenue enhancement 321.14 to expand expenditures for education, social, health, or 321.15 health-related services to families and children beyond the base 321.16 level, except as provided in subdivision 1, paragraph (a), 321.17 clause (4); 321.18 (5) the family services collaborative must ensure that 321.19 expenditures submitted for federal reimbursement are not made 321.20 from federal funds or funds used to match other federal funds. 321.21 Notwithstanding section 256B.19, subdivision 1, for the purposes 321.22 of family services collaborative expenditures under agreement 321.23 with the department, the nonfederal share of costs shall be 321.24 provided by the family services collaborative from sources other 321.25 than federal funds or funds used to match other federal funds; 321.26 (6) the family services collaborative must develop and 321.27 maintain an accounting and financial management system adequate 321.28 to support all claims for federal reimbursement, including a 321.29 clear audit trail and any provisions specified in the agreement; 321.30 and 321.31 (7) the family services collaborative shall submit an 321.32 annual report to the commissioner as specified in the agreement. 321.33 Sec. 7. [PARTNERSHIP PLANNING TEAM AND FAMILY ADVISORY 321.34 GROUP.] 321.35 Subdivision 1. [ESTABLISHMENT.] The commissioner of 321.36 children, families, and learning shall select not more than 15 322.1 persons knowledgeable about serving children and families to 322.2 serve on the partnership planning team. 322.3 The partnership planning team must include representatives 322.4 from community-based organizations serving primarily communities 322.5 of color, county boards, school boards, community action 322.6 agencies, and parents, representing a broad cross-section of 322.7 income groups, racial and ethnic groups, and ages of children. 322.8 Subd. 2. [DUTIES.] The team shall advise the commissioner 322.9 in the following areas: 322.10 (1) structure of the department; 322.11 (2) appropriate department advisory board structure; 322.12 (3) the appropriateness of specific applications for 322.13 funding consolidation and the consistency of those applications 322.14 with the purposes of chapter 119A; 322.15 (4) potential funding reductions; and 322.16 (5) technical refinements to the legislation establishing 322.17 the new department and funding consolidation. 322.18 Subd. 3. [REPORT.] The team must also provide a report to 322.19 the 1996 legislature that describes the new department 322.20 structure, provides a summary of the ways in which the 322.21 department is fulfilling the purposes and achieving the goals 322.22 specified in Minnesota Statutes, section 119A.01, and provides a 322.23 recommendation for technical refinements related to the 322.24 legislation creating the department. 322.25 Sec. 8. [DEMONSTRATION PROJECT; ALLOWING CONSOLIDATION OF 322.26 COUNTY PLANS.] 322.27 Subdivision 1. [AUTHORIZATION FOR DEMONSTRATION PROJECT.] 322.28 The commissioners of human services; corrections; health; and 322.29 children, families, and learning shall allow counties to 322.30 consolidate the plans required under Minnesota Statutes, 322.31 chapters 145A, 256E, and 401, into one plan, to be submitted to 322.32 those commissioners. 322.33 Subd. 2. [DUTIES OF COMMISSIONERS.] The several 322.34 commissioners shall work together and shall work with the 322.35 counties participating in the pilot project when developing the 322.36 single county plan. Each commissioner shall also provide 323.1 technical assistance to the county, if requested by the county. 323.2 Subd. 3. [INTEGRATED COUNTY PLANNING.] The counties 323.3 participating in the pilot project may submit one plan 323.4 consolidating the community health, community social services, 323.5 and community corrections plans required under Minnesota 323.6 Statutes, chapters 145A, 256E, and 401, respectively. County 323.7 boards, corrections advisory boards, community health boards, 323.8 community action agencies, private industry councils, and school 323.9 districts shall collaborate in planning for and providing a 323.10 continuum of services in each county. 323.11 Subd. 4. [COUNTY PLAN.] The plan must comply with federal 323.12 requirements. The plan may be submitted to the commissioners by 323.13 computer. The plan must be a three-part plan in that it must 323.14 provide a summary of: 323.15 (1) intracounty collaboration; 323.16 (2) collaboration with other service providers; and 323.17 (3) collaboration with local nonprofit organizations, 323.18 including churches and ecumenical organizations. 323.19 The two parts of the plan shall each provide information on 323.20 the existence or nonexistence of efforts to integrate funding, 323.21 collaborate governance, cross-train, coordinate information 323.22 gathering and management, and provide a one-stop service center 323.23 or community-based service delivery system to improve the 323.24 provision of services offered to children and families. The 323.25 plan must also address the barriers to collaboration. 323.26 Subd. 5. [COMMISSIONERS' REPORT.] For purposes of this 323.27 section, the several commissioners shall provide one 323.28 consolidated report to the legislature by January 1, 1996. The 323.29 report shall evaluate the pilot counties' single plan and shall 323.30 provide the advantages and problems with consolidating the plans. 323.31 Sec. 9. [REPORT ON STRUCTURE OF AGENCIES.] 323.32 The commissioner of administration in separate consultation 323.33 with the commissioners of the departments of human services, 323.34 health, corrections, public safety, housing finance, and the 323.35 office of strategic and long-range planning shall prepare a 323.36 report by February 15, 1996, examining the organization of 324.1 programs remaining in those departments after transfer of the 324.2 programs identified in this bill, and identifying alternative 324.3 organizational structures that may be more effective and 324.4 efficient than the organization prior to the transfer. 324.5 Sec. 10. [WORKER PROVISIONS.] 324.6 Subdivision 1. [LEGISLATIVE FINDINGS.] The legislature 324.7 finds that the reorganization of state agencies, including the 324.8 abolishment of agencies or their functions and the merger of 324.9 agency functions to the extent possible, makes the best use of 324.10 affected agency employees and improves the direct service 324.11 capabilities of state employees to provide public services to 324.12 citizens of the state and to customers of the agency. To ensure 324.13 that quality services are delivered to citizens of Minnesota, 324.14 appointing authorities shall comply with this section. 324.15 Subd. 2. [RESTRUCTURING PROVISIONS.] The restructuring of 324.16 agencies required by this act must be conducted in accordance 324.17 with Minnesota Statutes, sections 15.039 and 43A.045. 324.18 Subd. 3. [WORKER PARTICIPATION COMMITTEES.] (a) After the 324.19 commissioner-designate of children, families, and learning has 324.20 been appointed, before the restructuring of executive branch 324.21 agencies under this act, a labor and management committee 324.22 including representatives of employees and employers must be 324.23 established and given adequate time to perform the activities 324.24 prescribed by paragraph (b). Each exclusive representative of 324.25 employees shall select a committee member from each of its 324.26 bargaining units in each affected agency. The head of each 324.27 agency shall select an employee member from each unit of 324.28 employees not represented by an exclusive representative. The 324.29 agency head shall also appoint one or more committee members to 324.30 represent the agency. The number of members appointed by the 324.31 agency head, however, may not exceed the total number of members 324.32 selected by exclusive representatives. The labor and management 324.33 committee must be participatory and nonauthoritarian. Exclusive 324.34 representatives must be directly involved in the work of the 324.35 committee. 324.36 (b) The committee established under paragraph (a) shall: 325.1 (1) in cooperation with the commissioner of education and 325.2 the commissioner-designate, review and reevaluate the powers and 325.3 duties of the department of education and identify those that 325.4 are consistent with the purpose and goals of the department of 325.5 children, families, and learning; 325.6 (2) identify tasks related to agency reorganization and 325.7 adopt plans for addressing those tasks; 325.8 (3) identify other employer and employee issues related to 325.9 reorganization and adopt plans for addressing those issues; 325.10 (4) adopt plans for implementing this act, including 325.11 detailed plans for providing retraining for affected employees; 325.12 and 325.13 (5) guide the implementation of the reorganization. 325.14 Subd. 4. [EMPLOYEE JOB SECURITY.] The head of an agency 325.15 that is scheduled to be restructured shall meet and negotiate 325.16 with the exclusive representatives of affected employees of the 325.17 agency in the event that employees are at risk of being laid off 325.18 due to restructuring or significant change in the activities of 325.19 the agency. Bargaining under this subdivision must have as its 325.20 purpose the achievement of the highest possible degree of public 325.21 service delivery to the citizens of Minnesota and the provision 325.22 of appropriate incentives to state employees. Incentives may 325.23 include, but are not limited to, early retirement incentives, 325.24 negotiated options in place of layoff, methods to mitigate 325.25 layoffs and the effect of layoffs, job training and retraining 325.26 opportunities, and enhanced severance. 325.27 Subd. 5. [EMPLOYEE TRAINING AND RETRAINING.] The 325.28 legislature recognizes that a well-trained and well-educated 325.29 work force is needed to provide effective and efficient public 325.30 service delivery and that training and retraining of state 325.31 employees is a priority when merger and reorganization of state 325.32 agencies occur. The labor and management committee required by 325.33 subdivision 2 shall determine the employee training and 325.34 retraining required because of agency reorganization. Employees 325.35 whose job duties are affected by reorganization must be given 325.36 the opportunity to take part in training or retraining for the 326.1 new job duties. Existing employees must be trained or retrained 326.2 for agency positions before new hiring takes place. 326.3 Sec. 11. [APPOINTMENT; TRANSFERS OF EDUCATION FUNCTIONS.] 326.4 By July 1, 1995, the governor shall appoint a 326.5 commissioner-designate of the department of children, families, 326.6 and learning. The person appointed becomes the governor's 326.7 appointee as commissioner on the effective date of Minnesota 326.8 Statutes, sections 119A.01, subdivision 2, and 119A.03. The 326.9 commissioner-designee, in cooperation with the commissioner of 326.10 education, shall review and reevaluate the powers and duties of 326.11 the department of education and identify those that are 326.12 consistent with the purpose and goals of the department of 326.13 children, families, and learning. The functions identified by 326.14 the commissioner-designate are transferred to the department of 326.15 children, families, and learning under Minnesota Statutes, 326.16 section 15.039, effective October 1, 1995. 326.17 Sec. 12. [REPORT ON INTEGRATION WITH OTHER INCOME 326.18 MAINTENANCE AND ECONOMIC SECURITY PROGRAMS.] 326.19 The children's cabinet shall prepare a report by November 326.20 15, 1996, examining the integration of programs in the 326.21 department of children, families, and learning with income 326.22 maintenance and economic security programs operated by other 326.23 departments. The report shall make recommendations on the 326.24 appropriate agency placement of the income maintenance and 326.25 economic security programs reviewed. 326.26 Sec. 13. [REVISOR INSTRUCTION.] 326.27 The revisor of statutes shall identify in Minnesota 326.28 Statutes and Minnesota Rules all references to the commissioner 326.29 of education and the department of education and shall make the 326.30 following terminology changes: 326.31 (1) all references to the commissioner of education shall 326.32 be changed to the commissioner of children, families, and 326.33 learning; 326.34 (2) all references to the department of education shall be 326.35 changed to the department of children, families, and learning; 326.36 (3) all references involving the commissioner of education 327.1 shall be rewritten to give all relevant responsibilities or 327.2 authorities to the commissioner of children, families, and 327.3 learning; and 327.4 (4) all references to the programs being transferred to the 327.5 department of children, families, and learning to reflect that 327.6 those programs are under the jurisdiction of the commissioner of 327.7 children, families, and learning. 327.8 The revisor shall prepare a report for the 1996 legislature 327.9 showing where these changes were made. 327.10 The changes identified by the revisor shall be made 327.11 effective October 1, 1995, pursuant to the effective date in 327.12 section 15. 327.13 Sec. 14. [REPEALER.] 327.14 Laws 1995, chapter 207, article 1, section 9, subdivision 327.15 3, is repealed effective the day following final enactment. 327.16 Sec. 15. [EFFECTIVE DATE.] 327.17 Section 1, subdivision 1, is effective September 30, 1995. 327.18 Section 1, subdivisions 2 and 3, and sections 2, 3, 5, 7, and 327.19 13, are effective October 1, 1995. Section 4 is effective July 327.20 1, 1996. Sections 8 and 10 are effective July 1, 1995. Section 327.21 11 is effective the day following final enactment.