HF 4

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. 
  3.9      A school district is authorized to levy an amount 
  3.10  sufficient to pay for the expense of a postaudit by the state 
  3.11  auditor if the audit is performed at the discretion of the state 
  3.12  auditor pursuant to section 6.51 or if the audit has been 
  3.13  requested through a petition by eligible voters pursuant to 
  3.14  section 6.54.  A school district is not authorized to levy these 
  3.15  amounts if the postaudit by the state auditor is requested by 
  3.16  the 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 or 
  3.20  solicitation of bids A 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 site shall be initiated prior 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 plus 37.4 48 
  4.9   percent for fiscal year 1994 1996 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) 37.4 48 percent for fiscal year 1994 1996 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 REDUCTION CHANGE 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 reduced as 
  6.24  provided in this subdivision from 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 
  6.27  under Laws 1991, chapter 265, article 1, section 31, or Laws 
  6.28  1992, chapter 499, article 1, section 22 when 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.  An 
  7.4   additional adjustment shall be made on June 30, 1995, for the 
  7.5   final payment otherwise due July 1, 1995, under Minnesota 
  7.6   Statutes 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 orders at any rate of interest not to 
  8.17  exceed 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 of 
  8.24  not to exceed six percent per annum from the date of such 
  8.25  presentment.  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; and 
  9.34     (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  enrolled for the entire fiscal year in a program approved by the 
 10.20  commissioner and has an individual education plan that requires 
 10.21  up to 437 hours of assessment and education services in the 
 10.22  fiscal year is counted as one-half of a pupil unit.  If the plan 
 10.23  requires more than 437 hours of assessment and education 
 10.24  services, the pupil is counted as the ratio of the number of 
 10.25  hours of assessment and education service to 875 825 with a 
 10.26  minimum of 0.28, but not more than one. 
 10.27     (b) A prekindergarten pupil with a disability who is 
 10.28  enrolled for less than the entire fiscal year in a program 
 10.29  approved by the commissioner is counted as the greater of: 
 10.30     (1) one-half times the ratio of the number of instructional 
 10.31  days from the date the pupil is enrolled to the date the pupil 
 10.32  withdraws to the number of instructional days in the school 
 10.33  year; or 
 10.34     (2) the ratio of the number of hours of assessment and 
 10.35  education service required in the fiscal year by the pupil's 
 10.36  individual 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 to 875 825.  
 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 fiscal 
 11.11  year 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  as 1.03 pupil units for fiscal year 1994 and 1.06 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  a student pupil 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 the student pupil is enrolled in the 
 12.35  secondary school to the product of the number of days required 
 12.36  in section 120.101, subdivision 5b, times the minimum length of 
 13.1   day required in Minnesota Rules, part 3500.1500, subpart 
 13.2   1 during 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 entitlement shall be 
 13.35  paid 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 the amounts necessary to pay the district's 
 17.9   obligations under section 6.62; the amount 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 September 1 8, 
 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 
 18.21  15 30 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 year 1995 and later 1997 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 referendum 
 19.29  equalization aid is equal to one-third of the amount calculated 
 19.30  in clause (a). 
 19.31     (c) For fiscal year 1994, a district's referendum 
 19.32  equalization aid is equal to two-thirds of the amount calculated 
 19.33  in 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 conducted during the one or two calendar year years 
 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 of people 
 23.11  residing in the district equal to 15 percent of the number of 
 23.12  people who voted in the last general election in the school 
 23.13  district is filed with the recording officer qualified 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 for fiscal 
 24.4   years 1993 and 1994 is $3,050.  The formula allowance for fiscal 
 24.5   year 1995 and subsequent fiscal years is $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 fiscal 
 24.12  year 1992, the compensatory education revenue for each district 
 24.13  equals the formula allowance times the AFDC pupil units counted 
 24.14  according to section 124.17, subdivision 1b. 
 24.15     (b) For fiscal year 1993 and thereafter, The maximum 
 24.16  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 previous 
 24.20  formula compensatory education revenue for each district equals 
 24.21  the formula allowance times the AFDC pupil units computed 
 24.22  according to section 124.17, subdivision 1b.  
 24.23     (d) For fiscal year 1993, the compensatory education 
 24.24  revenue for each district equals the district's previous formula 
 24.25  compensatory revenue plus one-fourth of the difference between 
 24.26  the district's maximum compensatory education revenue and the 
 24.27  district's previous formula compensatory education revenue.  
 24.28     (e) For fiscal year 1994, the compensatory education 
 24.29  revenue for each district equals the district's previous formula 
 24.30  compensatory education revenue plus one-half of the difference 
 24.31  between the district's maximum compensatory education revenue 
 24.32  and the district's previous formula compensatory education 
 24.33  revenue.  
 24.34     (f) For fiscal year 1995, the compensatory education 
 24.35  revenue for each district equals the district's previous formula 
 24.36  compensatory education revenue plus three-fourths of the 
 25.1   difference between the district's maximum compensatory education 
 25.2   revenue and the district's previous formula compensatory 
 25.3   education revenue.  
 25.4      (g) For fiscal year 1996 and thereafter, the compensatory 
 25.5   education revenue for each district equals the district's 
 25.6   maximum 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 
 25.10  previous formula training and experience revenue for each 
 25.11  district equals the greater of zero or the result of the 
 25.12  following 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 of 
 25.15  $700 times the actual pupil units for the school year. 
 25.16     (b) The maximum training 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 experience 
 25.23  revenue for each district equals the district's previous formula 
 25.24  training and experience revenue plus one-half of the difference 
 25.25  between the district's maximum training and experience revenue 
 25.26  and the district's previous formula training and experience 
 25.27  revenue.  
 25.28     (d) For fiscal year 1995, the training and experience 
 25.29  revenue for each district equals the district's previous formula 
 25.30  training and experience revenue plus three-fourths of the 
 25.31  difference between the district's maximum training and 
 25.32  experience revenue and the district's previous formula training 
 25.33  and experience revenue. 
 25.34     (e) For fiscal year 1996 and thereafter, the training and 
 25.35  experience revenue for each district equals the district's 
 25.36  maximum 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, excluding training and experience transition 
 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 for that 
 27.32  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 the 
 28.1   current 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, subdivision 1, 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   subdivision 1, clause (e) 1h, times .03 .06 for fiscal year 
 35.7   1994 1995 and .06 for fiscal year 1995 and thereafter 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 year 
 35.19  1995 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 experience transition 
 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 experience transition aid according to 
 35.34  section 124A.22, subdivision 4b 13e; 
 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 
 36.20  training and experience transition 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 section 
 36.26  124A.22, subdivision 2, an amount equal to one percent in fiscal 
 36.27  year 1994, two percent in fiscal year 1995, and 2.5 percent in 
 36.28  fiscal year 1996 and thereafter times the formula allowance 
 36.29  times the number of actual pupil units shall be reserved and may 
 36.30  be used only A district is encouraged to reserve general 
 36.31  education revenue for in-service education for programs under 
 36.32  section 126.77, subdivision 2, or for 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 126.70 or, 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, 
 37.23  subdivision 2, an amount equal to $5 times the number of actual 
 37.24  pupil units must be reserved and may be used only to provide 
 37.25  parental involvement programs that implement section 126.69.  
 37.26  Parental involvement programs may include career teacher 
 37.27  programs, programs promoting parental involvement in the PER 
 37.28  process, coordination of volunteer services, participation in 
 37.29  developing, implementing, or evaluating school 
 37.30  desegregation/integration plans, and programs designed to 
 37.31  encourage 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 and each taxing authority shall 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 IN FORGIVENESS OF AID 
 42.23  REPAYMENT.] 
 42.24     The department of education must allow independent school 
 42.25  district No. 186, Pequot Lakes, to repay over a five-year period 
 42.26  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, section 
 42.30  124.155, subdivision 1, aids for independent school district No. 
 42.31  186, Pequot Lakes, shall not be adjusted for fiscal years 1991 
 42.32  and 1992 for pupils transferring into the district under 
 42.33  Minnesota 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, 
 45.16  permanent transfers must be made, on June 30 of the fiscal year 
 45.17  that the operation is discontinued, from the fund balance 
 45.18  account entitled "pupil transportation fund reserved for bus 
 45.19  purchases" to the capital expenditure fund.  The sum of the 
 45.20  levies authorized pursuant to sections 124.243, 124.244, and 
 45.21  124.83 shall be reduced by an amount equal to the amount 
 45.22  transferred.  Any school district may transfer any amount from 
 45.23  the undesignated fund balance account in its transportation fund 
 45.24  to any other operating fund or to the reserved fund balance 
 45.25  account for bus purchases in its transportation fund the 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  purpose for which aid is authorized under section 124.223 or for 
 46.18  which levies are authorized under sections 124.226, 124.2716, 
 46.19  124.91, 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 district eligible 
 47.16  to receive state aid for transportation under chapter 124 shall 
 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 as may become are made 
 47.25  available or appropriated shall be governed by section 124.225, 
 47.26  be paid to the school district entitled thereto for 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 through 12 10 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 safe vehicle lane street 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 the first 
 48.33  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 within three four 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 annually by October 15 that 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; and 
 51.6      (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, and 
 51.21  review and make appropriate amendments annually by August 
 51.22  1.  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 for School districts 
 52.4   may provide transportation or board of resident elementary 
 52.5   pupils who reside one mile or more from the public schools which 
 52.6   they could attend; transportation or board of resident secondary 
 52.7   pupils who reside two miles or more from the public schools 
 52.8   which they could attend; transportation to and from schools the 
 52.9   resident pupils attend according to a program approved by the 
 52.10  commissioner of education, or between the schools the resident 
 52.11  pupils attend for instructional classes, or to and from service 
 52.12  learning programs; transportation of resident elementary pupils 
 52.13  who reside one mile or more from a nonpublic school actually 
 52.14  attended; transportation of resident secondary pupils who reside 
 52.15  two 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 for 
 52.24  Late transportation home from school for pupils involved in 
 52.25  after school activities.  State transportation aid is not 
 52.26  authorized for summer program transportation except as provided 
 52.27  in 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 for School 
 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 is 
 53.19  authorized for School 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  and shall may 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.] State 
 53.27  transportation aid is authorized for School 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 transportation 
 53.33  aid is authorized for School 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 children not yet enrolled in kindergarten or to 
 54.13  the requirement in subdivision 1 that elementary pupils reside 
 54.14  at least one mile from school and secondary pupils reside at 
 54.15  least two miles from school in order for the transportation to 
 54.16  qualify for aid. 
 54.17     Subd. 5.  [BOARD AND LODGING; NONRESIDENTS WITH 
 54.18  DISABILITIES.] State transportation aid is authorized for School 
 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 is 
 54.23  authorized for School 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 transportation 
 54.31  aid is authorized for School districts may provide 
 54.32  transportation for residents resident pupils with disabilities 
 54.33  to and from the Minnesota state academy for the deaf or the 
 54.34  Minnesota state academy for the blind board and lodging 
 54.35  facilities when the pupil is boarded and lodged for educational 
 54.36  purposes. 
 55.1      Subd. 8.  [SUMMER INSTRUCTIONAL PROGRAMS.] State 
 55.2   transportation aid is authorized for School 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 authorized 
 55.7   for School 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.] State 
 55.11  transportation aid is authorized for School 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.] State 
 55.18  transportation aid is authorized for School 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 transportation aid and data. 
 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 approval 
 56.17  of 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 
 59.6   1991-1992 1993-1994 base year and $463 for the 1992-1993 base 
 59.7   year.  
 59.8      (b) Multiply the result in paragraph (a) by the district's 
 59.9   density index raised to the 35/100 1/2 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 by 2.35 zero percent to determine 
 59.17  the district's regular transportation allowance for the 
 59.18  1993-1994 1995-1996 school year and by 3.425 percent to 
 59.19  determine the district's regular transportation allowance for 
 59.20  the 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 the 1992-1993 and later school years 1995-1996 
 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 is 1.0435 1.0 for the 
 60.17  1993-1994 1995-1996 school year and 1.03425 for the 1994-1995 
 60.18  school 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 or one percent of the sum of the district's regular 
 60.24  transportation revenue according to subdivision 7d, paragraph 
 60.25  (a), and nonregular transportation revenue according to 
 60.26  subdivision 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 section 275.125 124.226, subdivision 5 1, 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, shall may 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 to 
 61.28  the pupil to the nonresident district according to this 
 61.29  section.  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 
 62.9   implement the transportation aid formula account for 
 62.10  transportation expenditures.  If a district's final 
 62.11  transportation aid payment is adjusted after the final aid 
 62.12  payment has been made to all districts, the adjustment shall be 
 62.13  made by increasing or decreasing the district's aid for the next 
 62.14  fiscal 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 in the second year 
 64.35  following each 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, or a 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 collected with this 
 71.22  reporting form under 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 bus 
 71.29  They must have a be contained in removable, moisture- and 
 71.30  dust-proof first aid kit containers mounted in an accessible 
 71.31  place within the driver's compartment and must be marked to 
 71.32  indicate its their 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, or a 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) ensure encourage 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; and 
 75.1      (7)  demonstrate proficiency in first aid and 
 75.2   cardiopulmonary 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 school district district's 
 75.13  pupil transportation safety director, the chief administrator of 
 75.14  a nonpublic school, or a private contractor shall evaluate each 
 75.15  bus driver certify annually to assure the commissioner of public 
 75.16  safety that, at minimum, each school bus driver continues to 
 75.17  meet meets 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 provide at least eight 
 75.21  hours of in-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, or 
 75.27  private contractor shall certify annually to the commissioner of 
 75.28  public safety that each driver has received eight hours of 
 75.29  in-service training and has met the training competencies The 
 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 
 76.11  fourth moving violation within a three-year period violation 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 DISQUALIFYING OFFENSE AND 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   169.121 or, 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 a conviction violation under 
 77.12  section 169.121, 169.123, or 169.129, 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 169.121 or, 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 169.121 or, 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 169.121 or, 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. 
 85.24     At least five calendar Within five business days before 
 85.25  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 objection and, 
 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 the state board of 
 88.21  education hearing 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-fifth One-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; or 
 92.36     (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 fiscal year years 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 participant shall 
113.7   who fulfills the terms of a contract under section 121.707, 
113.8   subdivision 2, receive a nontransferable postservice benefit 
113.9   upon 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 years after completing 
113.30  the program, the amount of the postservice benefit shall be used 
113.31  to provide a postservice benefit refunded 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 program operating costs, 
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 LEARNING SERVICE-LEARNING AND 
117.11  WORK-BASED LEARNING PROGRAMS STUDY.] The Minnesota commission on 
117.12  national 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 and service learning service-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  service established 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 sections 121.703 121.704 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) The Minnesota commission on national and community 
118.5   service governor's workforce development council, in cooperation 
118.6   with the state board of technical colleges board 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 district shall may 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 of 1.13 1.1 percent for fiscal year 1995 and 
120.21  thereafter, 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; or 
121.29     (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 [PURPOSE EDUCATION AND EMPLOYMENT TRANSITIONS 
121.36  SYSTEM.] 
122.1      Subdivision 1.  [PURPOSE GOALS.] 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   established to that 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 by 
122.11  providing to 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, 
122.15  including but not limited to occupation-specific apprenticeship 
122.16  programs 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; and 
122.27     (4) (6) to expand educational options available to students 
122.28  all learners through collaborative efforts between secondary 
122.29  institutions school districts, post-secondary 
122.30  institutions, business, industry employers, 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) A Comprehensive youth apprenticeship program programs 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 with students' 
124.23  learners' employers, must use competency-based measures to 
124.24  evaluate students' learners' progress in the program.  Students 
124.25  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 a 
124.29  comprehensive youth apprenticeship program must: 
124.30     (1) meet applicable secondary and post-secondary education 
124.31  requirements; 
124.32     (2) enable the students to attain academic proficiency in 
124.33  at least the areas of English, mathematics, history, science, 
124.34  and geography; and 
124.35     (3) where appropriate, modify existing secondary and 
124.36  post-secondary curricula to accommodate the changing needs of 
125.1   the workplace. 
125.2      (c) Work-based learning provided as part of the program 
125.3   must: 
125.4      (1) supply students with knowledge, skills, and abilities 
125.5   based on appropriate, nationally accepted standards in the 
125.6   specific industries and occupations for which the students are 
125.7   trained; 
125.8      (2) offer students structured job training at the worksite, 
125.9   including 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 to 
125.13  manage resources, work productively with others, acquire and use 
125.14  information, understand and master systems, and work with 
125.15  technologies; and 
125.16     (6) where feasible, offer students the opportunity to 
125.17  participate in community service and service learning activities.
125.18     (d) Worksite learning and experience provided as part of 
125.19  the program must: 
125.20     (1) help youth apprentices achieve the program's academic 
125.21  and work-based learning requirements; 
125.22     (2) pay apprentices for their work; and 
125.23     (3) assist employers to fulfill their commitment to youth 
125.24  apprentices. 
125.25     Sec. 25.  Minnesota Statutes 1994, section 126B.03, 
125.26  subdivision 3, is amended to read: 
125.27     Subd. 3.  [PROGRAM COMPONENTS YOUTH 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 consult 
125.35  with local private industry councils, to ensure that the youth 
125.36  apprenticeship program meets local labor market demands and, 
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 meet meets applicable state education 
126.4   graduation requirements and labor standards, pays apprentices 
126.5   for their work and provide provides support services to program 
126.6   participants, and accommodate the integrating of work-related 
126.7   learning and academic instruction through flexible schedules for 
126.8   students 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 principals or, counselors, or 
126.31  business mentors familiar with the demonstration project 
126.32  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  apprenticeship program or 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) For 
137.25  fiscal 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 1996 and 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 for 
137.33  a school year shall be reduced if the unreserved balance in the 
137.34  capital expenditure facilities account on June 30 of the prior 
137.35  school year exceeds $675 times the fund balance pupil units in 
137.36  the prior year as defined in section 124A.26, subdivision 1.  If 
138.1   a district's capital expenditure facilities revenue is reduced, 
138.2   the reduction equals the lesser of (1) the amount that the 
138.3   unreserved balance in the capital expenditure facilities account 
138.4   on June 30 of the prior year exceeds $675 times the fund balance 
138.5   pupil units in the prior year, or (2) the capital expenditure 
138.6   facilities revenue for that year. 
138.7      (d) For 1996 and later fiscal years, the previous formula 
138.8   revenue equals the amount of revenue computed for the district 
138.9   according 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, 
138.29  the capital expenditure equipment revenue for each district 
138.30  equals $66 times its actual pupil units for the school year. 
138.31     (b) For fiscal years year 1996 and later, the capital 
138.32  expenditure equipment 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; and 
139.26     (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 capital expenditure 
140.21  equipment levy under section 124.244 revenue for the year the 
140.22  initial debt service levies are certified.  The 
140.23  district's capital expenditure levy under section 
140.24  124.244 general 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, to 50 percent of the equalizing 
142.24  factor $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 over five eight 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 the 
143.34  commissioner 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, article 
144.32  11, section 8, do not need to meet the criteria of section 
144.33  124.431, 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 in 
145.10  section 124A.02, subdivision 8, for the year to which the levy 
145.11  is 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-third 30 percent before September 15, one-third 30 
145.17  percent before December 15, and one-third 25 percent before 
145.18  March 15 of 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 fiscal 
145.24  year 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.  The 1994 1998 
145.29  appropriation includes $3,000,000 for 1993 and $14,000,000 for 
145.30  1994 $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 made only for 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 referendum 
150.23  on the question of combination under section 122.243, 
150.24  subdivision 2, may make permanent transfers between any of the 
150.25  funds in the district with the exception of the debt redemption 
150.26  fund, food service fund, and health and safety account of the 
150.27  capital expenditure fund for up to one year prior to the 
150.28  effective 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 
150.36  state board commissioner 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 
152.4   12 36 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 whose position active 
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 within 12 36 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) the percentage, amount specified in subdivision 4, of 
154.16  the equalizing factor for 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, the percentage amount 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  122.23 and has not received revenue under section 124.2725 is 
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 payment 
156.1   of district costs for the early retirement incentives granted by 
156.2   the district under section 122.23, subdivision 20.  Any revenue 
156.3   under subdivision 2 remaining after the payment of district 
156.4   costs for the early retirement incentives must be used to reduce 
156.5   operating debt as defined in section 121.915.  Any additional 
156.6   aid remaining after the reduction of operating debt must be 
156.7   deposited 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 received consolidation transition 
157.7   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 and both all 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 on or after July 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 courses for 
163.21  secondary 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 district receives received 
167.33  general education aid according to that section for the second 
167.34  preceding year, or section 124B.20, if the education district of 
167.35  which the district is a member receives general education aid 
167.36  according to that section; 
168.1      (ii) section 124.226, subdivisions 1 and 4, if the district 
168.2   receives received transportation aid according to section 
168.3   124.225 for the second preceding year; 
168.4      (iii) section 124.243, if the district receives received 
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 district receives received 
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 district receives received 
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  district receives received 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 
168.18  receives received 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 
168.21  receives received 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 
168.24  receives received 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 
168.27  receives received 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 district receives received 
169.13  general education aid according to that section, or section 
169.14  124B.20, if the education district of which the district is a 
169.15  member receives general education aid according to that 
169.16  section for the second preceding year; 
169.17     (ii) section 124.226, subdivisions 1 and 4, if the school 
169.18  district receives received transportation aid according to 
169.19  section 124.225 for the second preceding year; 
169.20     (iii) section 124.243, if the district receives received 
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 district receives received 
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 district receives received 
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  district receives received 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 
169.34  receives received 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 
170.1   receives received 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 
170.4   receives received 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 
170.7   receives received 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 FOR AN OUTCOME-BASED A RESULTS-ORIENTED 
170.28  CHARTER SCHOOL.] 
170.29     Subdivision 1.  [GENERAL EDUCATION REVENUE.] General 
170.30  education revenue shall be paid to an outcome-based a 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 to an outcome-based a 
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-based a 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 to an 
171.32  outcome-based a 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.  The outcome-based charter 
172.2   school shall allocate its special education levy equalization 
172.3   revenue to the resident districts of the pupils attending 
172.4   the outcome-based charter school as though it were a 
172.5   cooperative, as provided in section 124.321, subdivision 2, 
172.6   paragraph (a), clause clauses (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) An 
172.10  outcome-based A 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 unless an 
172.15  outcome-based a 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 of an 
172.29  outcome-based a 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-based A 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 in 1994 and 1995 1996, 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.  The school 
173.27  site management team, or the school board if there is no school 
173.28  site management team, shall adopt a plan for written evaluation 
173.29  of teachers during the probationary period according to 
173.30  subdivision 3a or 3b.  Evaluation by the peer review committee 
173.31  charged with evaluating probationary teachers under subdivision 
173.32  3a shall 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, after 
174.7   consulting with the peer review committee charged with 
174.8   evaluating 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 the multicultural advisory committee 
174.25  established in section 126.82 desegregation/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 in any program approved by 
175.2   the state board of education under Minnesota Rules, part 
175.3   3500.3500, or area 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 a assist site decision-making team 
175.30  about teams 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 
176.8   education the 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 enhance 
176.16  staff skills for achieving the following outcomes The 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 pupils improve 
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 using 
176.24  appropriate outcomes and personal learning goals and by 
176.25  encouraging pupils and their parents to assume responsibility 
176.26  for their education effectively 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 alternative 
176.31  instructional opportunities, accommodations, modifications, 
176.32  after-school child care programs, and family and community 
176.33  resources provide 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 with 
177.2   disabilities within the regular classroom and other settings by 
177.3   improving the knowledge of school personnel about the legal and 
177.4   programmatic requirements affecting students with disabilities, 
177.5   and by improving staff ability to collaborate, consult with one 
177.6   another, and resolve conflicts; and improve 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 all 
177.10  students that are consistent with the school 
177.11  desegregation/integration and inclusive education policies 
177.12  adopted by school districts and approved by the state. 
177.13     (b) The staff development committee is strongly encouraged 
177.14  to include in its plan activities for achieving the following 
177.15  outcomes: 
177.16     (1) facilitate organizational changes by enabling a 
177.17  site-based team composed of pupils, parents, school personnel, 
177.18  representatives of children with disabilities, and community 
177.19  members who generally reflect the racial composition of the 
177.20  school to address the pupils' needs; 
177.21     (2) evaluate the effectiveness of education policies, 
177.22  processes, and products through appropriate evaluation 
177.23  procedures that include multiple criteria and indicators; 
177.24     (3) provide effective mentorship oversight and peer review 
177.25  of probationary, continuing contract, and nonprobationary 
177.26  teachers; 
177.27     (4) assist elementary and secondary students in learning to 
177.28  resolve conflicts in effective, nonviolent ways; 
177.29     (5) effectively teach and model violence prevention policy 
177.30  and curricula that address issues of sexual, racial, and 
177.31  religious harassment; and 
177.32     (6) provide challenging instructional activities and 
177.33  experiences, including advanced placement and international 
177.34  baccalaureate programs, that recognize and cultivate students' 
177.35  advanced 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      Before December 1 January 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, 1995 1997. 
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 
181.11  shall may contract with the city of Saint Paul for such 
181.12  facilities as are furnished 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 be most more 
181.15  efficiently and effectively handled separately, the board shall 
181.16  contract on a pro rata cost basis with the city for such 
181.17  facilities and services as are provided 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  construction of 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 provision shall may 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; 
184.27  3510.0200; 3510.0300; 3510.0400; 3510.0500; 3510.0600; 
184.28  3510.0800; 3510.1100; 3510.1200; 3510.1300; 3510.1400; 
184.29  3510.1500; 3510.1600; 3510.2800; 3510.2900; 3510.3000; 
184.30  3510.3200; 3510.3400; 3510.3500; 3510.3600; 3510.3700; 
184.31  3510.3800; 3510.7200; 3510.7300; 3510.7400; 3510.7500; 
184.32  3510.7600; 3510.7700; 3510.7900; 3510.8000; 3510.8100; 
184.33  3510.8200; 3510.8300; 3510.8400; 3510.8500; 3510.8600; 
184.34  3510.8700; 3510.9000; 3510.9100; chapters 3515, 3517.0100; 
184.35  3517.0120; 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 
186.28  organizations representing diverse cultures, the state American 
186.29  Indian education committee, shall decide whether or not to 
186.30  include in the curriculum for preparing all beginning elementary 
186.31  and social studies teachers a study of anthropology that 
186.32  encompasses a study of the indigenous people of the midwest, and 
186.33  a study of the history of the indigenous people that encompasses 
186.34  a study of the Minnesota area in precolonial times through the 
186.35  twentieth 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 of the an 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-BASED RESULTS-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 to an 
201.11  outcome-based a 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 
201.14  outcome-based charter 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 more outcome-based charter schools. 
201.19     A school board may authorize a maximum of five 
201.20  outcome-based schools. 
201.21     No more than a total of 35 outcome-based 40 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 of outcome-based charter 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 operate an outcome-based a charter school 
201.29  subject to approval by the state board of education.  If a 
201.30  school board elects not to sponsor an outcome-based a 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 authorize an outcome-based a charter 
202.5   school.  The affidavit must state the terms and conditions under 
202.6   which the sponsor would authorize an outcome-based a charter 
202.7   school.  The state board must approve or disapprove the 
202.8   sponsor's proposed authorization within 30 60 days of receipt of 
202.9   the affidavit.  Failure to obtain state board approval precludes 
202.10  a sponsor from authorizing the outcome-based charter 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 to outcome-based 
202.29  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 for an 
202.34  outcome-based a charter school shall be in the form of a written 
202.35  contract signed by the sponsor and the board of directors of the 
202.36  outcome-based charter school.  The contract for an outcome-based 
203.1   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 the outcome-based charter 
203.14  school; 
203.15     (8) types and amounts of insurance coverage to be obtained 
203.16  by the outcome-based charter 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-based a 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-based A 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 locate an outcome-based a 
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  boundaries an outcome-based a 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) The A charter school must be nonsectarian in its 
204.2   programs, admission policies, employment practices, and all 
204.3   other operations.  A sponsor may not authorize an outcome-based 
204.4   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 of the a 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.] The A 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. 
205.6      The A 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. 
205.10     The A 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-based A 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.] The A 
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.] The A 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-based A 
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-based A 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 at a the 
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 the outcome-based charter 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.] The A 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 operate an 
207.32  outcome-based a charter school and how to utilize the offerings 
207.33  of an outcome-based a 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 at an outcome-based a 
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 of the a charter school may, if otherwise eligible, 
208.22  organize under chapter 179A and comply with its provisions.  The 
208.23  board of directors of the a 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 
208.26  are shall 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  of an outcome-based a 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 to an outcome-based a 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 of the date the 
211.19  student withdraws a 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 the 
212.27  commissioner of any fee it proposes to initiate under this 
212.28  section.  If within 45 days of this notification, the 
212.29  commissioner does not disapprove the proposed fee, the local 
212.30  school 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 DUTIES INFORMATION SYSTEM.] 
214.7      Subdivision 1.  [COMPONENTS; GOVERNANCE INFORMATION 
214.8   SYSTEM.] The statewide elementary, secondary and vocational 
214.9   education management department of education shall develop and 
214.10  maintain a computerized information system shall consist of the 
214.11  ESV-IS and the SDE-IS and shall be governed by the state board 
214.12  according to the provisions of sections 121.93 to 121.936 for 
214.13  state information needs.  
214.14     Subd. 2.  [PURPOSES.] The purposes of the statewide 
214.15  elementary, secondary and vocational education management 
214.16  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) To provide a computerized research capability for 
214.20  analysis of education information ensure 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 provide a capability for the collection and 
214.28  processing for computerized analysis of educational information 
214.29  in order to meet the management needs of the state of Minnesota. 
214.30     Subd. 3.  [SYSTEMS ARCHITECTURE PLAN.] The state board, 
214.31  with the advice and assistance of the ESV computer council, 
214.32  shall develop a systems architecture plan for providing 
214.33  administrative data processing to school districts, the 
214.34  department of education, and the legislature.  In developing the 
214.35  plan, the state board shall consider at least the following:  
214.36  user needs; systems design factors; telecommunication 
215.1   requirements; computer hardware technology; and alternative 
215.2   hardware purchase and lease arrangements.  
215.3      Subd. 4.  [LONG-RANGE PLAN.] The state board, with the 
215.4   advice and assistance of the ESV computer council and the 
215.5   information policy office, shall develop a long-range plan for 
215.6   providing administrative data processing to school districts, 
215.7   the department of education, and the legislature.  In developing 
215.8   the plan, the state board shall consider at least the following: 
215.9   desirable major enhancements to the ESV-IS and SDE-IS; new 
215.10  system development proposals; new or modified approaches to 
215.11  provide support services to districts; the responsibility of 
215.12  regional management information centers to provide reports to 
215.13  the department on behalf of affiliated districts; and related 
215.14  development and implementation time schedules.  The long-range 
215.15  plan shall address the feasibility and practicability of 
215.16  utilizing microcomputers, minicomputers, and larger computer 
215.17  systems.  The plan shall be updated by September 15 of each 
215.18  even-numbered year.  The long-range plan shall consist of one 
215.19  document and shall incorporate the systems architecture plan and 
215.20  all relevant portions of previous documents which have been 
215.21  referred to as the state computing plan. 
215.22     Subd. 5.  [SOFTWARE DEVELOPMENT.] The commissioner shall 
215.23  provide for the development of applications software for ESV-IS 
215.24  and 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 management 
216.4   information centers are required to provide to the department 
216.5   for 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 act but, to the extent 
216.10  authorized by law to adopt rules, the board may use the 
216.11  provisions of section 14.38, subdivisions 5 to 9. 
216.12     Subd. 4.  [SDE-IS DATA SYSTEM.] The department shall 
216.13  develop and operate the SDE-IS with the advice and assistance of 
216.14  the ESV computer council a computerized data system.  The SDE-IS 
216.15  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.  
216.21  The department shall consult the advisory council on uniform 
216.22  financial accounting and reporting standards, the advisory task 
216.23  forces on student reporting and payroll/personnel reporting, and 
216.24  representatives of the senate and the house of representatives 
216.25  and of each division of the department, about needs for 
216.26  information 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 district shall send must 
217.20  provide the essential data to the ESV regional computer center 
217.21  to which it belongs, where it shall be edited and transmitted to 
217.22  the department 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.] The state board of 
217.31  technical colleges, the state board of education, and the 
217.32  department may provide, by the delegation of powers and duties 
217.33  or by contract, for the implementation and technical support 
217.34  of ESV-IS and SDE-IS a computerized information reporting 
217.35  system, including the development of applications software 
217.36  pursuant to section 121.931, subdivision 5, by a regional 
218.1   management information center or by any other appropriate 
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 may with the 
218.8   approval of the state board pursuant to sections 121.931 and 
218.9   121.936 create 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 center 
218.12  shall not come into existence until the first July 1 after its 
218.13  creation is approved by the state board or until it can be 
218.14  accommodated by state appropriations, whichever occurs first.  
218.15  Each member of the board of a center created after June 30, 
218.16  1991, 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 alternative 
218.23  systems may be members of the center.  Upon receiving the 
218.24  approval of the state board to operate an alternative system, a 
218.25  district may become a member of the center.  
218.26     Each member of the center board shall be a current member 
218.27  of 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.  
218.32     The center shall perform the duties required by subdivision 
218.33  2, 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.  
219.1      Subd. 2.  [DUTIES.] Every regional management information 
219.2   center shall: 
219.3      (a) assist its affiliated districts in complying with the 
219.4   reporting requirements of the annual data acquisition calendar 
219.5   and the rules of the state board of education; 
219.6      (b) respond within 15 calendar days to requests from the 
219.7   department for district information provided to the region for 
219.8   state reporting of information, based on the data elements in 
219.9   the data element dictionary; 
219.10     (c) operate financial management information systems 
219.11  consistent with the uniform financial accounting and reporting 
219.12  standards adopted by the commissioner pursuant to sections 
219.13  121.904 to 121.917; 
219.14     (d) make available to districts the opportunity to 
219.15  participate fully in all the subsystems of ESV-IS; 
219.16     (e) develop and maintain a plan to provide services during 
219.17  a system failure or a disaster; 
219.18     (f) comply with the requirement in section 121.908, 
219.19  subdivision 2, on behalf of districts affiliated with it; and 
219.20     (g) operate fixed assets property management information 
219.21  systems consistent with the uniform property accounting and 
219.22  reporting standards adopted by the commissioner. 
219.23     Subd. 4.  [ANNUAL BUDGET ESTIMATES.] Every regional 
219.24  management information center shall submit to the department by 
219.25  July 1 an annual budget estimate for its administrative and 
219.26  management computer activities.  The budget estimates shall be 
219.27  in a program budget format and shall include all estimated and 
219.28  actual revenues, expenditures, and fund balances of the center.  
219.29  Budget forms developed pursuant to section 16A.10 may be used 
219.30  for these estimates.  The department of education shall assemble 
219.31  this budget information into a supplemental budget summary for 
219.32  the statewide elementary, secondary, and vocational management 
219.33  information system.  Copies of the budget summary shall be 
219.34  provided to the ESV computer council and shall be available to 
219.35  the 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. 
220.3      Subd. 8.  [COMPUTER HARDWARE PURCHASE.] A regional 
220.4   management information center may not purchase or enter into a 
220.5   lease-purchase agreement for computer hardware in excess of 
220.6   $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 member district.  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   appointing school board and may be recalled by a majority vote 
221.9   of the appointing school board.  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.  
221.31  It must be submitted for review by the educational cooperative 
221.32  service unit within which the majority of the education district 
221.33  membership 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 under 
223.12  section 123.58 a 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 respective school boards.  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 participating districts members.  
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.  [INSTRUCTION REQUIRED PERMITTED.] Every 
235.6   public elementary and secondary school shall may 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   exceed three class or activity periods five 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 given 
236.13  course of study.  A class period or activity period means, in 
236.14  elementary grades, a period of time not to exceed one hour, 
236.15  regardless of the subject of instruction a 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 beginning 
236.31  of the 1984-1985 school year Each school board shall adopt a 
236.32  written districtwide school discipline policy which shall 
236.33  include written rules of conduct for pupils students, minimum 
236.34  consequences for violations of the rules, and grounds and 
236.35  procedures for removal of pupils a 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 a pupil student 
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, the pupil or other pupils student 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 governing pupil student conduct and procedures 
237.22  for informing pupils students of the rules; 
237.23     (b) the grounds for removal of a pupil student from a 
237.24  class; 
237.25     (c) the authority of the classroom teacher to remove pupils 
237.26  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 a pupil student 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 a pupil student may be 
237.32  removed from a class, which may not exceed three five 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 a pupil student removed from a class; 
237.36     (g) the procedures for return of a pupil student to the 
238.1   specified class from which the pupil student has been removed; 
238.2      (h) the procedures for notifying pupils and parents or 
238.3   guardians a 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   a pupil's student'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 
238.12  pupils a 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 a pupil student with a disability who is removed from class; 
238.18  and 
238.19     (m) procedures for detecting and addressing chemical abuse 
238.20  problems of pupils a 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 principal and the licensed employees or 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 be librarians library 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, shall may 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 in an accredited a 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, and 1995, 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     The department of education Minnesota 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.  The department of education center 
247.3   shall designate sites in consultation with the Minnesota 
247.4   alliance for arts in education, the Minnesota center for arts 
247.5   education, 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 the 
247.28  comprehensive arts planning program, unless that district has 
247.29  joined 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) to understand ecological systems; 
248.7      (2) to understand 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-solving 
248.10  skills to understand the decision-making process of individuals, 
248.11  institutions, and nations regarding environmental issues; 
248.12     (4) to be able to evaluate alternative responses to 
248.13  environmental issues before deciding on alternative courses of 
248.14  action; and 
248.15     (5) (4) to understand the potential complementary nature 
248.16  effects of multiple uses of the environment;. 
248.17     (6) to provide experiences to assist citizens to increase 
248.18  their sensitivity and stewardship for the environment; and 
248.19     (7) to provide the (b) Pupils and citizens shall have 
248.20  access to information citizens need and 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 the director commissioner 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.  [TO MANAGE GOVERN.] The state board of 
249.12  education must manage shall 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 or hearing 
249.20  impairment deafness.  
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 COUNCIL SITE COUNCILS.] The state board 
249.31  must have may establish, and appoint members to, an advisory 
249.32  council on management policies at the state academies a 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 [RESOURCE CENTER:  HEARING AND VISUALLY 
250.5   IMPAIRED CENTERS; DEAF OR HARD OF HEARING AND BLIND OR VISUALLY 
250.6   IMPAIRED.] 
250.7      Subdivision 1.  [ALSO FOR MULTIPLY DISABLED.] A resource 
250.8   center Resource centers for the hearing-impaired, visually 
250.9   impaired, and deaf or hard of hearing, and the blind or visually 
250.10  impaired, each also serving multiply disabled pupils is 
250.11  established at, are transferred to the state academies 
250.12  department of education. 
250.13     Subd. 2.  [PROGRAMS.] The resource center centers must 
250.14  offer summer institutes and like programs throughout the state 
250.15  for hearing-impaired, visually impaired deaf or hard of hearing, 
250.16  blind or visually impaired, and multiply disabled pupils.  The 
250.17  resource center centers must also offer workshops for teachers, 
250.18  and leadership development for teachers. 
250.19     A program offered through the resource center centers 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 resource center 
250.25  centers may contract to have nonprofit organizations provide 
250.26  programs through the resource center centers. 
250.27     Subd. 4.  [ADVISORY COUNCIL COMMITTEES.] The advisory 
250.28  council for the academies is the advisory council for the 
250.29  resource 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 
251.2   in at 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 with teacher-preparing 
251.7   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  the residential 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 teaching and or 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 [STATE BOARD RULES ADOPTED PROCEDURES.] 
252.3      Subdivision 1.  [SUBJECTS.] The rules of the state board of 
252.4   education authorized in section 128A.02 must 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 procedures set out in the rules must 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 board described in this section governing 
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 deaf or hearing-impaired, hard of 
252.29  hearing, or blind-deaf, may be admitted to the academy for the 
252.30  deaf.  A pupil who is visually blind 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 the hearing 
253.2   deafness or visual blindness 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 or hearing-impaired hard 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 or hearing-impaired hard 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. 
254.22     or 
254.23     All that part of the Northwest Quarter of the Southwest 
254.24     Quarter (NW 1/4 of SW 1/4) of Section 28, and of the 
254.25     Northeast Quarter of the Southeast Quarter (NE 1/4 of SE 
254.26     1/4) of Section 29, all in Township 110 North, Range 20 
254.27     West, Rice County, Minnesota, owned by the State of 
254.28     Minnesota or any department or division thereof. 
254.29     (c) A more precise legal description in substantial 
254.30  conformance with the description in paragraph (b) must be 
254.31  provided by the grantee in the instruments of 
254.32  conveyance.  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 described 
255.24  in subdivision 1 are If 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 a public 
272.34  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, educational service 
279.35  cooperative service unit as defined in section 123.58 123.582, 
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  through an educational a service cooperative service unit 
280.23  created under section 123.58 123.582 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 section 123.58 123.582 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  that meets the requirements of section 124A.27, subdivision 9 is 
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  section 124.32 124.3201, 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" for 
282.18  fiscal year 1992 means pupil units identified in section 124.17, 
282.19  subdivision 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 fiscal 
282.25  year 1992, the compensatory education revenue for each district 
282.26  equals the formula allowance times the AFDC pupil units counted 
282.27  according 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 sections 124.273 and 
283.27  124.32 124.3201, 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 the 
284.16  board about the programs enumerated in section 124A.27, that the 
284.17  committee determines should be offered.  The recommendations 
284.18  shall be based on district and learning site needs and 
284.19  priorities. 
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 reserve and cash flow account until the total amount in 
285.1   the account equals five percent of total general fund 
285.2   appropriations for the current biennium as established by the 
285.3   most recent legislative session.  Beginning July 1, 1993, 
285.4   forecast unrestricted budgetary general fund balances are first 
285.5   appropriated to restore the budget reserve and cash flow account 
285.6   to $500,000,000 is $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 reserve and cash flow account.  
285.13  $180,000,000 of the budget reserve and cash flow account shall 
285.14  be 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  reserve and cash flow account 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 next school fiscal 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 next school 
292.18  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  may also withhold 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 the school fiscal 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 for 
293.18  summer school programs for children with a disability on the 
293.19  basis of subdivisions 1b, 1d, and 5 for the current school 
293.20  year.  The state shall also pay to the Minnesota state academy 
293.21  for the deaf or the Minnesota state academy for the blind a part 
293.22  of the salary of each instructional aide assigned to a child 
293.23  attending the academy, if that aide is required by the child's 
293.24  individual 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 personnel 
298.22  in that district minus the amount of state aid and any federal 
298.23  aid, if applicable, paid to that district for salaries of these 
298.24  essential personnel under section 124.32, subdivisions 1b and 
298.25  10, for the year to which the levy is attributable, plus 
298.26     (2) 68 percent of the salaries paid to essential personnel 
298.27  in that district minus the amount of state aid and any federal 
298.28  aid, if applicable, paid to that district for salaries of those 
298.29  essential personnel under section 124.574, subdivision 2b, for 
298.30  the year to which the levy is attributable, plus 
298.31     (3) 68 percent of the salaries paid to limited English 
298.32  proficiency program teachers in that district minus the amount 
298.33  of state aid and any federal aid, if applicable, paid to that 
298.34  district for salaries of these teachers under section 124.273, 
298.35  subdivision 1b, for the year to which the levy is attributable, 
298.36  plus 
299.1      (4) the alternative delivery levy revenue determined 
299.2   according to section 124.322, subdivision 4, plus 
299.3      (5) the amount allocated to the district by special 
299.4   education cooperatives or intermediate districts in which it 
299.5   participates according to subdivision 2. 
299.6      A district that receives alternative delivery levy revenue 
299.7   according to section 124.322, subdivision 4, shall not receive 
299.8   levy equalization revenue under clause (1) or subdivision 2, 
299.9   clause (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 FROM COOPERATIVES AND 
299.28  INTERMEDIATE DISTRICTS STATE ACADEMIES.] (a) For purposes of 
299.29  this section, a special education cooperative or an intermediate 
299.30  district shall allocate to participating school districts the 
299.31  sum of the following amounts: 
299.32     (1) 68 percent of the salaries paid to essential personnel 
299.33  in that cooperative or intermediate district minus the amount of 
299.34  state aid and any federal aid, if applicable, paid to that 
299.35  cooperative or intermediate district for salaries of these 
299.36  essential personnel under section 124.32, subdivisions 1b and 
300.1   10, for the year to which the levy is attributable, plus 
300.2      (2) 68 percent of the salaries paid to essential personnel 
300.3   in that district minus the amount of state aid and any federal 
300.4   aid, if applicable, paid to that district for salaries of those 
300.5   essential personnel under section 124.574, subdivision 2b, for 
300.6   the year to which the levy is attributable, plus 
300.7      (3) 68 percent of the salaries paid to limited English 
300.8   proficiency program teachers in that cooperative or intermediate 
300.9   district minus the amount of state aid and any federal aid, if 
300.10  applicable, paid to that cooperative or intermediate district 
300.11  for salaries of these teachers under section 124.273, 
300.12  subdivision 1b, for the year to which the levy is attributable. 
300.13     (b) A special education cooperative or an intermediate 
300.14  district that allocates amounts to participating school 
300.15  districts under this subdivision must report the amounts 
300.16  allocated to the department of education. 
300.17     (c) For purposes of this subdivision section, 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 to 68 percent 
300.20  of salaries paid to instructional aides in either academy minus 
300.21  the amount of state aid and any federal aid, if applicable, paid 
300.22  to either academy for salaries of these instructional aides 
300.23  under 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 allocates unreimbursed 
300.34  portions of salaries of instructional aides revenue 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 of unreimbursed costs of 
301.3   salaries revenue 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.  [DEFINITIONS BASE REVENUE ADJUSTMENT.] In this 
301.13  section, 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 the 
301.16  district's application, base revenue means the sum of the 
301.17  district's revenue for the preceding fiscal year for its special 
301.18  education program under sections 124.32, subdivisions 1b, 1d, 2, 
301.19  5, and 10, and 124.321, subdivision 1; 
301.20     (2) for the second fiscal year after approval of a 
301.21  district's application, base revenue means the sum of the 
301.22  district's revenue for the second prior fiscal year for its 
301.23  special education program under sections 124.32, subdivisions 
301.24  1b, 1d, 2, 5, and 10, and 124.321, subdivision 1; and 
301.25     (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 revenue means the sum of the revenue a 
301.29  district would have been entitled to in the second prior fiscal 
301.30  year for its special education program under sections 124.32, 
301.31  subdivisions 1b, 1d, 2, 5, and 10, and 124.321, subdivision 
301.32  1, 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 a 
302.3   district's application, base aid means the sum of the district's 
302.4   gross aid for the preceding fiscal year for its special 
302.5   education program under section 124.32, subdivisions 1b, 1d, 2, 
302.6   5, and 10; 
302.7      (2) for the second fiscal year after approval of a 
302.8   district's application, base aid means the sum of the district's 
302.9   gross aid for the second prior fiscal year for its special 
302.10  education program under section 124.32, subdivisions 1b, 1d, 2, 
302.11  5, and 10; and 
302.12     (3) for the third fiscal year after approval of a 
302.13  district's application and thereafter, base aid means the sum of 
302.14  the gross aid the district would have been entitled to in the 
302.15  second prior fiscal year for its special education program under 
302.16  section 124.32, subdivisions 1b, 1d, 2, 5, and 10, based on 
302.17  activities defined as reimbursable under state board of 
302.18  education rules for special education and nonspecial education 
302.19  students, and additional activities as detailed and approved by 
302.20  the commissioner of education in the application plan. 
302.21     (c) Notwithstanding paragraphs (a) and (b), base revenue 
302.22  and base aid for 1995 and later fiscal years must not include 
302.23  revenue 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 a 
302.26  district's application, the greater of 1.017 or the ratio of (i) 
302.27  the statewide average special education revenue under sections 
302.28  124.32 and 124.321 per pupil in average daily membership for the 
302.29  current fiscal year, to (ii) the statewide average special 
302.30  education revenue per pupil in average daily membership for the 
302.31  previous fiscal year. 
302.32     (2) for the second and later fiscal years, the greater of 
302.33  1.034 or the ratio of (i) the statewide average special 
302.34  education revenue under sections 124.32 and 124.321 per pupil in 
302.35  average daily membership for the current fiscal year, to (ii) 
302.36  the statewide average special education revenue per pupil in 
303.1   average daily membership for the second prior fiscal year. 
303.2      (e) The commissioner of education shall adjust each 
303.3   district's base revenue and base aid to reflect any changes in 
303.4   special education services required by rule or statute.  
303.5      Subd. 2.  [AMOUNT OF ALTERNATIVE DELIVERY REVENUE.] For the 
303.6   first fiscal year after approval of an application, a district's 
303.7   alternative delivery revenue equals its base revenue multiplied 
303.8   by the product of the alternative delivery revenue inflator 
303.9   times the ratio of the district's average daily membership for 
303.10  the current fiscal year to the district's average daily 
303.11  membership for the immediately preceding fiscal year.  For the 
303.12  second and later fiscal years a district's alternative delivery 
303.13  revenue equals its base revenue multiplied by the product of the 
303.14  alternative delivery revenue inflator times the ratio of the 
303.15  district's average daily membership for the current fiscal year 
303.16  to the district's average daily membership for the second 
303.17  preceding fiscal year. 
303.18     Subd. 3.  [ALTERNATIVE DELIVERY AID.] For the first fiscal 
303.19  year after approval of an application, a district's alternative 
303.20  delivery aid equals its base aid multiplied by the product of 
303.21  1.017 times the ratio of the district's average daily membership 
303.22  for the current fiscal year to the district's average daily 
303.23  membership for the preceding fiscal year.  For the second and 
303.24  later fiscal years a district's alternative delivery aid equals 
303.25  its base aid multiplied by the product of 1.034 times the ratio 
303.26  of the district's average daily membership for the current 
303.27  fiscal year to the district's average daily membership for the 
303.28  second preceding fiscal year.  A district that receives aid 
303.29  under this subdivision shall not receive aid under section 
303.30  124.32, subdivisions 1b, 1d, 2, 5, and 10, for the same fiscal 
303.31  year. 
303.32     Subd. 4.  [ALTERNATIVE DELIVERY LEVY REVENUE.] A district 
303.33  shall receive alternative delivery levy revenue equal to the 
303.34  difference between the alternative delivery revenue and the 
303.35  alternative delivery aid.  If the alternative delivery aid for a 
303.36  district is prorated, the alternative delivery levy revenue 
304.1   shall be increased by the amount not paid by the state due to 
304.2   proration.  The alternative delivery levy revenue shall be 
304.3   included under section 124.321, subdivision 1, for purposes of 
304.4   computing the special education levy under section 124.321, 
304.5   subdivision 3, and the special education levy equalization aid 
304.6   under section 124.321, subdivision 4. 
304.7      Subd. 5.  [USE OF REVENUE.] Revenue under this section 
304.8   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  sections 124.32, subdivisions 1b, 1d, 2, and 10, and 124.322, 
304.19  subdivision 2 124.3201, 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 sections 124.32, subdivisions 1b, 
304.24  1d, 2, and 10; 124.321, subdivision 1, clause (1); and 124.322, 
304.25  subdivision 2 124.3201, 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 COST AID REVENUE.] For 1995 1996 and 
305.2   later fiscal years, a district's special education excess 
305.3   cost aid revenue 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.